Document:

Exhibit 10(b)

	EXHIBIT 10(b)

	Consent of Swidler
Berlin Shereff Friedman, LLP

	     We
hereby consent to the reference to our firm included in the prospectus and
statement of additional information of Mercury U.S. Small Cap Growth Fund of
Mercury Funds, Inc. filed as part of Post-Effective Amendment No. 1 to the
Registration Statement (File No. 333-85731) and to the use of our opinion of
counsel, incorporated by reference to Exhibit 9 to Pre Effective Amendment No.
2 to the Registration Statement on Form N-1A (File No. 333-85731).

	/s/ Swidler Berlin
Shereff Friedman, LLP

       Swidler Berlin Shereff Friedman, LLP

	New York, New York

      September  12, 2000Exhibit 10(a)

	EXHIBIT 10(a)

	INDEPENDENT AUDITORS’ CONSENT

	Mercury International Fund of

      Mercury Funds, Inc.:

	
      We consent to the incorporation by reference in this Post-Effective
        Amendment No. 2 to Registration Statement No. 333-56203 of our reports
        dated July 14, 2000 appearing in the annual report of Mercury International
        Fund (the “Fund”) of Mercury Funds, Inc. (formerly Mercury Asset Management Funds,
        Inc.) for the year ended May 31, 2000 covering both the Fund and Mercury
        Master International Portfolio, and to the reference to us under the caption
        “Financial Highlights” in the Prospectus, which is a part of
        such Registration Statement.

      

	/s/ Deloitte & Touche LLP

      

      Deloitte & Touche LLP

      Princeton, New Jersey

      September 12, 2000Exhibit 10(b)

	EXHIBIT 10(b) 

	Consent of Swidler Berlin Shereff Friedman, LLP

	
      We hereby consent to the reference to our firm included
        in the prospectus and statement of additional information of Mercury International
        Fund of Mercury Funds, Inc. filed as part of Post-Effective Amendment
        No. 2 to the Registration Statement (File No. 333-56203) and to the use
        of our opinion of counsel, incorporated by reference to Exhibit 9 to Pre-Effective
        Amendment No. 1 to the Registration Statement on Form
        N-1A (File No. 333-56203).

      

	/s/ Swidler Berlin Shereff Friedman, LLP
      
       Swidler Berlin Shereff Friedman,
        LLP  

      

New York, New York

  September 12, 2000Exhibit 10(a)

	Exhibit 10(a)

	INDEPENDENT AUDITORS’ CONSENT

	Mercury Master Trust:

	We consent to the incorporation by
reference in this Amendment No. 7 to Registration Statement No. 811-09049 on
Form N-1A for Mercury Master Trust (formerly Mercury Asset Management Master
Trust) of our reports dated July 6, 2000, July 13, 2000, July 14, 2000, July
17, 2000 and July 17, 2000 appearing in the May 31, 2000 Annual Reports of
Mercury Master U.S. Large Cap Portfolio, Mercury Master U.S. Small Cap
Portfolio, Mercury Master International Portfolio, Mercury Master Pan-European
Growth Portfolio, and Mercury Master Gold and Mining Portfolio, respectively.

	We also consent to the incorporation
by reference in this Registration Statement of our report dated June 16, 2000
on the Statement of Assets and Liabilities for Mercury Master Select Growth
Portfolio as of June 13, 2000 appearing in Part B of Amendment No. 6 to this
Registration Statement.

	We further consent to the
incorporation by reference in this Registration Statement of our report dated
January 18, 2000 appearing in the November 30, 1999 Annual Report of Mercury
Master Global Balanced Portfolio.

	/s/ Deloitte & Touche LLP

      

      Princeton, New Jersey

      September 12, 2000Exhibit 10(b)

	EXHIBIT 10(b) 

	Consent of Swidler Berlin Shereff Friedman, LLP

	We hereby consent to the reference to our firm included in
      Part A and Part B of Mercury Master Trust, filed as part of Amendment No.
      7 to the Registration Statement (File No. 811-09049).

	/s/ Swidler Berlin Shereff Friedman, LLP
      
       Swidler Berlin Shereff Friedman,
        LLP  

      

New York, New York

  September 12, 2000AMENDED CERTIFICATE OF DESIGNATIONS OF
                   SERIES C 6% CONVERTIBLE PREFERRED STOCK OF
                             USA BIOMASS CORPORATION

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

     The undersigned, Fred H. Behrens and Hilly G. Jones, hereby certify that:

     I.  They  are  the  duly  elected  and  acting   Chairman  and   Secretary,
respectively,   of  USA  Biomass   Corporation,   a  Delaware  corporation  (the
"Corporation").

     II. The  Certificate of  Incorporation  of the  Corporation  authorizes the
Corporation to issue  preferred  stock,  and the  Corporation has authorized the
issuance of three thousand  (3,000) shares of Series C 6% Convertible  Preferred
Stock, $0.01 par value per share.

     III. The following is a true and correct copy of  resolutions  duly adopted
by the Board of Directors of the Corporation  (the "Board of Directors") on July
5, 2000  pursuant to the Articles of  Incorporation  of the  Corporation  and in
accordance  with the provisions of the General  Corporation  Law of the State of
Delaware.

RESOLUTIONS

     WHEREAS,  the Board of Directors is  authorized to provide for the issuance
of the shares of preferred  stock,  and by filing a certificate  pursuant to the
applicable law of the State of Delaware to establish and issue  preferred  stock
with  such  voting  powers,  full or  limited,  or no  voting  powers,  and such
designations, preferences and relative, participating, optional or other special
rights, and with such qualifications, limitations or restrictions thereon as the
Board of Directors may determine.

     WHEREAS,  the Board of  Directors  desires,  pursuant to its  authority  as
aforesaid,  to  designate  a new series of  preferred  stock,  set the number of
shares constituting such series and fix the rights, preferences,  privileges and
restrictions of such series.

     NOW,  THEREFORE,  BE IT  RESOLVED,  that  the  Board  of  Directors  hereby
designates a new series of preferred stock and the number of shares constituting
such  series and fixes the  rights,  preferences,  privileges  and  restrictions
relating to such series as follows:

     A.  Designation,  Amount and Par Value. The series of preferred stock shall
be  designated  as the Series C 6%  Convertible  Preferred  Stock (the "Series C
Preferred  Stock"),  and the  number  of  shares  so  designated  shall be three
thousand  (3,000)  (which  shall not be subject to increase or  decrease).  Each
share of Series C Preferred  Stock shall have a par value of $0.01 per share and
a  stated  value  (the  "Stated  Value")  of  the  Liquidation   Preference  (as
hereinafter defined in Section C(1)).

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<PAGE>

     B. Dividends.

     (1) Holders of the Series C  Preferred  Stock shall be entitled to receive,
out of funds legally  available  therefor,  dividends at a rate equal to 6% (the
"Dividend  Rate") of the Liquidation  Preference per share per annum (subject to
appropriate  adjustments  in the  event  of any  stock  dividend,  stock  split,
combination or other similar  recapitalization  affecting  such shares),  and no
more,  payable in accordance with the provisions of this Amended  Certificate of
Designations.

     (2) At the election of the Corporation, each dividend on Series C Preferred
Stock shall be paid either in shares of Common Stock of the Corporation,  $0.002
par value per share ("Common Stock") or in cash on the Delivery Date (as defined
in Subsection G(2)(a) of this Amended  Certificate of Designations) with respect
to any shares of Series C  Preferred  Stock which are the subject of a Notice of
Conversion  (as  defined  in  Subsection  G(2) of this  Amended  Certificate  of
Designations).  Dividends paid in shares of Common Stock shall be paid (based on
an assumed  value of $1,000 per share) in full shares only,  with a cash payment
equal to the value of any fractional shares. Each dividend paid in cash shall be
mailed to the holders of record of the Series C  Preferred  Stock as their names
and addresses  appear on the share register of the  Corporation or at the office
of the transfer agent on the  corresponding  dividend  payment date.  Holders of
Series C Preferred Stock will receive written  notification from the Corporation
or the transfer  agent if a dividend is paid in kind,  which  notification  will
specify  the  number  of  shares  of Common  Stock  paid as a  dividend  and the
recipient's  aggregate holdings of Common Stock as of that dividend payment date
and after giving effect to the  dividend.  All holders of shares of Common Stock
issued as dividends shall be entitled to all of the rights and benefits relating
to  shares  of  Common  Stock as set  forth  in the  Corporation's  Articles  of
Incorporation, as amended, and By-laws.

     (3) Holders of the Series C Preferred Stock shall be entitled to payment of
any dividends in preference  and priority to any payment of any cash dividend on
Common Stock or any other class or series of capital  stock of the  Corporation,
other than  holders of shares of the issued and  outstanding  Series A Preferred
Stock of the Company,  as of the date  hereof,  who shall be entitled to receive
such  dividends on a pari passu basis with the holders of the Series C Preferred
Stock.  Dividends  on the Series C Preferred  Stock shall accrue with respect to
each share of the Series C Preferred  Stock from the date on which such share is
issued and outstanding and thereafter  shall be deemed to accrue from day to day
whether or not earned or  declared  and  whether  or not there  exists  profits,
surplus or other funds legally available for the payment of dividends, and shall
be  cumulative so that if such  dividends on the Series C Preferred  Stock shall
not have been paid, or declared and set apart for payment,  the deficiency shall
be fully paid or declared and set apart for payment before any dividend shall be
paid or declared  or set apart for any Common  Stock or other class or series of
capital stock ranking  junior to the Series C Preferred  Stock (such stock being
collectively  referred to herein as the "Junior  Stock") and before any purchase
or  acquisition of any Junior Stock is made by the  Corporation.  At the earlier
of: (1) the redemption or conversion of the Series C Preferred  Stock or (2) the
liquidation of the  Corporation,  any accrued but undeclared  dividends shall be
paid to the holders of record of outstanding shares of

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<PAGE>

the Series C Preferred  Stock in accordance  with the provisions of this Amended
Certificate  of  Designations.  No  accumulation  of  dividends  on the Series C
Preferred Stock shall bear interest.

     C. Liquidation, Dissolution or Winding Up. In the event of any voluntary or
involuntary  liquidation,  dissolution  or  winding up of the  Corporation,  the
holders of shares of the Series C  Preferred  Stock  then  outstanding  shall be
entitled  to be  paid  out  of  the  assets  of the  Corporation  available  for
distribution  to its  stockholders,  before  any  payment  shall  be made to the
holders of Junior Stock by reason of their ownership thereof, an amount equal to
one  thousand  dollars  ($1,000)  per share of  Series C  Preferred  Stock  (the
"Liquidation  Preference") plus any accrued but unpaid dividends (whether or not
declared).  If upon any  such  liquidation,  dissolution  or  winding  up of the
Corporation the remaining  assets of the Corporation  available for distribution
to its  stockholders  shall be  insufficient to pay the holders of shares of the
Series C Preferred  Stock the full amount to which they shall be  entitled,  the
holders of shares of the Series C Preferred  Stock  shall  share  ratably in any
distribution of the remaining  assets and funds of the Corporation in proportion
to the  respective  amounts  which would  otherwise be payable in respect of the
shares held by them upon such  distribution  if all  amounts  payable on or with
respect to such shares were paid in full.

     D. Voting.  Except for the limited voting rights  specified in Section J of
this Amended  Certificate of Designations,  each holder of outstanding shares of
Series C  Preferred  Stock  shall  not be  entitled  to vote at any  meeting  of
stockholders  of the  Corporation  (and with  respect  to  written  consents  of
stockholders in lieu of meetings) with respect to any and all matters  presented
to the stockholders of the Corporation for their action or consideration,  until
and unless the shares of Series C Preferred  Stock held by such holder have been
converted into shares of Common Stock,  at which time each holder shall have the
voting rights appurtenant to each whole share of Common Stock so converted.

     E. Other Securities.  Subject to any limitations  contained in this Amended
Certificate of Designations,  the Corporation's Articles of Incorporation and/or
the Primary Documents (as defined in the Securities Purchase Agreement, dated as
of March 14, 2000,  hereinafter the "Securities Purchase Agreement"),  the Board
of Directors  of the  Corporation  reserves  the right to  establish  additional
classes and/or series of capital stock of the  Corporation  and to designate the
preferences,  limitations and relative rights of any such classes and/or series;
provided,  however,  that no such  class  and/or  series  may have  preferences,
limitations  and  relative  rights  which  are  superior  to or  senior  to  the
preferences,  limitations  and  relative  rights  granted to the  holders of the
Series C Preferred Stock.

     F. Capital  Reorganization.  If the Corporation shall at any time hereafter
subdivide or combine its outstanding shares of Common Stock,  declare a dividend
payable  in  Common  Stock,  or  in  case  of  any  capital   reorganization  or
reclassification of the shares of Common Stock of the Corporation, the number of
shares of the  Series C  Preferred  Stock and the  Stated  Value of the Series C
Preferred  Stock  shall be  adjusted  appropriately  to allow the holders of the
Series C Preferred Stock, as nearly as reasonably possible,  to maintain (i) the
aggregate  Stated Value of the Series C Preferred  Stock and (ii) their pro rata
interest in the Corporation and in the

                                        3
<PAGE>

Common Stock upon conversion of the Series C Preferred  Stock,  that each holder
had prior to any such subdivision,  combination, stock dividend,  reorganization
or reclassification.

     G. Conversion.

     (1) The  holders  of the Series C  Preferred  Stock  shall have  conversion
rights as follows (the "Series C Preferred Stock Conversion Rights"):

          (a) Each share of Series C Preferred  Stock shall be  convertible,  at
     the option of the holder  thereof,  at any time and from time to time, into
     such number of fully paid and  nonassessable  shares of Common  Stock as is
     determined  by dividing  $1,000,  plus the amount of any accrued and unpaid
     dividends the Corporation  elects to pay in Common Stock, by the Conversion
     Price  (as  defined  below)  in  effect  at the  time  of  conversion.  The
     Conversion  Price at which shares of Common Stock shall be deliverable upon
     conversion  of Series C Preferred  Stock  without the payment of additional
     consideration by the holder thereof (the  "Conversion  Price") shall be the
     lower of (i) four and 65/100 dollars  ($4.65) or (ii) 85% of the average of
     the three  lowest  Closing Bid Prices of the shares of Common Stock for the
     fifteen  (15)  trading days  immediately  preceding  the Series C Preferred
     Stock  Conversion  Date (as  hereinafter  defined).  For  purposes of these
     Articles of Amendment, the term "Closing Bid Price" means, for any security
     as of any date, the closing bid price on the principal  securities exchange
     or trading market where the Common Stock is listed or traded as reported by
     Bloomberg,  L.P. ("Bloomberg") or, if applicable,  the closing bid price of
     the Common Stock in the over-the-counter  market on the electronic bulletin
     board for such  security as reported  by  Bloomberg,  or, if no closing bid
     price is reported  for the Common Stock by  Bloomberg,  then 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 of the Common Stock can not be  calculated on such date on any of the
     foregoing  bases,  the Closing  Bid Price of the Common  Stock on such date
     shall be the fair market value as  determined  by the holders of a majority
     of the  outstanding  shares of Series C Preferred Stock being converted for
     which the  calculation  of the  Closing  Bid Price is  required in order to
     determine the Conversion Price of such shares. "Trading day" shall mean any
     day on which the Corporation's Common Stock is traded for any period on the
     principal  securities  exchange  or other  securities  market  on which the
     Common Stock is then being traded.  If, during any period  following  March
     14, 2000 (the "Original Issue Date"),  as a result of the occurrence of any
     of the events set forth in Section 3(f) or 3(g) of the Registration  Rights
     Agreement,  dated as of March 14, 2000, by and between the  Corporation and
     the Purchaser set forth therein (the "Registration Rights Agreement"),  the
     Purchasers  set forth  therein are not able to sell shares of Common  Stock
     issuable upon conversion of, or in lieu of dividends on, shares of Series C
     Preferred Stock pursuant to a registration statement filed pursuant to such
     agreement, the holders of shares of Series C Preferred Stock shall have the
     right,  for any purpose during such period and thereafter,  to designate as
     the Conversion  Price any Conversion  Price that would have been applicable
     during such period had such Series C Preferred Stock shareholder  delivered
     a Notice of Conversion with respect to any such Series C Preferred Stock.

                                        4
<PAGE>

          (b) In no event shall the number of shares of Common  Stock issued (A)
     upon conversion of the Series C Preferred Stock and (B) in lieu of dividend
     payments  on the  Series  C  Preferred  Stock,  equal  20% or  more  of the
     Corporation's  outstanding  Common  Stock.  At such  time as the  Board  of
     Directors of the Corporation determines that it is necessary or appropriate
     to do so to  ensure  that the  number  of  shares  issued  to the  Series C
     Preferred  Stockholder resulting from conversion and dividend payments does
     not equal or exceed 20% of the  Corporation's  outstanding  Common Stock (a
     "Common Stock Redemption  Event"),  the Corporation  shall (x) redeem, at a
     price per share equal to (A) the quotient of (i) the Liquidation Preference
     per share of Series C Preferred Stock plus all accrued but unpaid dividends
     on such shares of Series C Preferred Stock and (ii) the Conversion Price as
     if the  Series  C  Preferred  Stock  had  been  converted  on the  Series C
     Preferred  Stock  Redemption Date multiplied by (B) the average Closing Bid
     Price of shares of Common Stock for the five (5) trading  days  immediately
     preceding  the  Series  C  Preferred  Stock  Redemption  Date,  all  of the
     outstanding  Series C Preferred  Stock or (y) call a special meeting of its
     stockholders for the purpose of approving the transactions  contemplated by
     the Securities Purchase  Agreement,  including the issuance of the Series C
     Preferred  Stock on the terms set forth  therein,  together  with any other
     approvals  that  shall  be  required  so  as  to  cause  the   transactions
     contemplated by the Securities  Purchase  Agreement to remain in compliance
     with the Rules and Regulations of The Nasdaq Stock Market  (including Rules
     4300  and  4310  of  Nasdaq's   Non-Qualitative   Designation  Criteria  in
     connection with conversions of Series C Preferred Stock; such approvals are
     referred to herein as the "Required  Approvals");  provided,  however, that
     the Corporation  shall not redeem the outstanding  Series C Preferred Stock
     pursuant to clause (x) above, until such time as the Corporation has issued
     that number of shares of the  Corporation's  Common Stock equal to at least
     16% of the Corporation's outstanding Common Stock to the Series C Preferred
     Stockholders . The  Corporation  shall  determine  within five (5) business
     days following the receipt of a Notice of Conversion  which of such actions
     it shall take, and shall promptly  furnish notice to each of the holders of
     Series  C  Preferred  Stock  as  to  such  determination,   including,   if
     applicable, a notice of redemption. In no event shall the Corporation issue
     shares of Common Stock upon conversion of, or in lieu of dividend  payments
     on, the Series C Preferred  Stock,  after the  occurrence of a Common Stock
     Redemption Event until the Required Approvals, if any, are obtained.

          (c)  If the  Corporation  elects  to  call a  special  meeting  of its
     stockholders  pursuant to Subsection G(1)(b) of this Amended Certificate of
     Designations to obtain the Required  Approvals,  the Corporation  shall use
     its best efforts to obtain such Required  Approvals within thirty (30) days
     of the Closing Date (as defined in the Securities Purchase Agreement) (such
     thirty (30) day period is referred to herein as an "Approval  Period").  If
     the Corporation does not obtain the Required  Approvals within the Approval
     Period  and the  Corporation  receives  a Notice  of  Conversion  after the
     termination  of the  Approval  Period,  the  Corporation  must  redeem,  in
     accordance  with  this   Subsection  G  of  this  Amended   Certificate  of
     Designations,  that number of shares of Series C Preferred  Stock necessary
     to  ensure  that the  number of shares  issued  to the  Series C  Preferred
     Stockholder resulting

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<PAGE>

     from  conversion and dividend  payments does not equal or exceed 20% of the
     Corporation's outstanding Common Stock.

          (d) If the  Corporation  elects,  pursuant  to this  Subsection  G, to
     redeem the Series C Preferred  Stock on the  occurrence  of a Common  Stock
     Redemption  Event,  it shall  redeem such  Series C Preferred  Stock at the
     price  determined in  accordance  with  Subsection  G(1)(b) of this Amended
     Certificate  of  Designations.  If  the  Corporation  shall  have  elected,
     pursuant to this  Subsection  G(1),  to obtain the Required  Approvals  but
     shall not have done so by the later of the  occurrence  of the Common Stock
     Redemption Event or the expiration of the Approval Period, it shall furnish
     a redemption  notice to the Purchaser  within three (3) business days after
     the expiration of the Approval Period.

     (2) The Series C Preferred  Stock  Conversion  Rights shall be exercised as
follows:

          (e) The  Corporation  will  permit  each  holder of Series C Preferred
     Stock to  exercise  its right to convert  the Series C  Preferred  Stock by
     faxing an executed  and  completed  notice of  conversion  (the  "Notice of
     Conversion") to the Corporation,  and delivering  within three (3) business
     days  thereafter,  the original Notice of Conversion (and the  certificates
     representing  the  related  shares  of  Series C  Preferred  Stock)  to the
     Corporation by hand delivery or by express  courier,  duly  endorsed.  Each
     date on which a Notice  of  Conversion  is  faxed  in  accordance  with the
     provisions  hereof shall be deemed a "Series C Preferred  Stock  Conversion
     Date." The  Corporation  will transmit the  certificates  representing  the
     Common  Stock  issuable  upon  conversion  of the Series C Preferred  Stock
     (together  with  certificates  representing  the related shares of Series C
     Preferred Stock not so converted and, if applicable,  a check  representing
     any fraction of a share not  converted) to such holder via express  courier
     as soon as  practicable,  but in all  events no later  than (the  "Delivery
     Date")  three  (3)  business  days  after  the  Series  C  Preferred  Stock
     Conversion Date. For purposes of this Amended  Certificate of Designations,
     such  conversion  of the Series C  Preferred  Stock shall be deemed to have
     been  made  immediately  prior to the  close of  business  on the  Series C
     Preferred Stock Conversion Date.

          (f) In lieu  of  delivering  physical  certificates  representing  the
     Common Stock issuable upon the conversion of the Series C Preferred  Stock,
     provided that the  Corporation's  transfer  agent is  participating  in the
     Depository Trust  Corporation  ("DTC") Fast Automated  Securities  Transfer
     program, on the written request of a holder of Series C Preferred Stock who
     shall have previously instructed such holder's prime broker to confirm such
     request to the Corporation's  transfer agent, the Corporation shall use its
     best efforts to cause its transfer  agent to  electronically  transmit such
     Common Stock to such holder by crediting the account of the holder's  prime
     broker with DTC through its Deposit  Withdrawal Agent Commission  system no
     later than the applicable Delivery Date.

          (g) The Corporation will at all times have authorized and reserved for
     the purpose of issuance a  sufficient  number of shares of Common  Stock to
     provide for the conversion of the Series C Preferred Stock. The Corporation
     will use its best  efforts  at all times to  maintain a number of shares of
     Common Stock so reserved for issuance that is no

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<PAGE>

     less than the sum of (i) one and one-half (1.5) times the number that would
     then actually be issuable upon the  conversion  of three  thousand  (3,000)
     shares of Series C Preferred  Stock and (ii) the  exercise of the  Warrants
     (as defined in the Securities Purchase Agreement). Before taking any action
     which would cause an  adjustment  reducing the  Conversion  Price below the
     established  par  value  of  the  shares  of  Common  Stock  issuable  upon
     conversion of the Series C Preferred Stock, the Corporation  shall take any
     corporate action which may, in the opinion of its counsel or in the opinion
     of counsel to holders of the Series C  Preferred  Stock,  be  necessary  in
     order that the  Corporation  may validly  and legally  issue fully paid and
     nonassessable shares of Common Stock at such adjusted Conversion Price.

     (3) In  the  event  of a  liquidation  of the  Corporation,  the  Series  C
Preferred  Stock  Conversion  Rights shall terminate at the close of business on
the first  full day  preceding  the date fixed for the  payment  of any  amounts
distributable on liquidation to the holders of the Series C Preferred Stock.

     (4) If the  conversion  is in  connection  with an  underwritten  offer  of
securities  registered  pursuant to the Securities Act of 1933, as amended,  the
conversion may, at the option of any holder  tendering  Series C Preferred Stock
for conversion, be conditioned upon the closing with the underwriter of the sale
of securities  pursuant to such offering,  in which event the person(s) entitled
to receive  the  Common  Stock  issuable  upon such  conversion  of the Series C
Preferred  Stock shall not be deemed to have  converted  such Series C Preferred
Stock until immediately prior to the closing of the sale of securities.

     (5) At no time  shall any holder of the Series C  Preferred  Stock  convert
such  amount of Series C  Preferred  Stock as shall  result in such  Purchaser's
ownership,   after  such  conversion,   exceeding  4.99%  of  the  Corporation's
outstanding Common Stock.

     (6) No fractional shares of Common Stock shall be issued upon conversion of
the Preferred  Stock. In lieu of fractional  shares,  the Corporation  shall pay
cash equal to such  fraction  multiplied by the then  effective  and  applicable
Conversion Price.

     (7) The Corporation will 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 under this Amended  Certificate of Designations by the Corporation,
but will at all  times  in good  faith  assist  in the  carrying  out of all the
provisions of this Amended  Certificate of Designations and in the taking of all
such action as may be necessary or  appropriate in order to protect the Series C
Preferred Stock Conversion Rights of the holders of the Series C Preferred Stock
against impairment.

     (8) In the event (a) that the Corporation declares a dividend (or any other
distribution) on its Common Stock payable in Common Stock or other securities of
the Corporation, (b) that the Corporation subdivides or combines its outstanding
shares of Common Stock, (c) of any  reclassification  of the Common Stock of the
Corporation  (other than a subdivision or combination of its outstanding  shares
of Common Stock or a stock dividend or stock distribution

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<PAGE>

thereon),  (d) of any  consolidation  or merger of the Corporation  into or with
another  corporation,  (e) of the sale of all or substantially all of the assets
of  the  Corporation,  or  (f)  of the  involuntary  or  voluntary  dissolution,
liquidation or winding up of the Corporation,  then the Corporation  shall cause
to be filed at its  principal  office or at the office of the transfer  agent of
the Series C Preferred Stock, and shall cause to be mailed to each holder of the
Series C  Preferred  Stock at their last  address as shown on the records of the
Corporation or such transfer  agent,  at least ten (10) days prior to the record
date  specified  in (i) below or twenty (20) days before the date  specified  in
(ii) below, a notice stating

          (i) the record date of such  dividend,  distribution,  subdivision  or
     combination,  or, if a record is not to be taken,  the date as of which the
     holders  of  Common  Stock  of  record  to be  entitled  to such  dividend,
     distribution, subdivision or combination are to be determined, or

          (ii) the date on which such reclassification,  consolidation,  merger,
     sale,  dissolution,  liquidation  or  winding  up  is  expected  to  become
     effective,  and the date as of which it is expected  that holders of Common
     Stock of record shall be entitled to exchange  their shares of Common Stock
     for securities or other property  deliverable  upon such  reclassification,
     consolidation, merger, sale, dissolution or winding up.

     H.  Sinking  Fund.  There  shall  be no  sinking  fund for the  payment  of
dividends,  or liquidation  preferences  on the Series C Preferred  Stock or the
redemption of any shares thereof.

     I. Redemption  Events. In case one or more of the following events,  each a
redemption event, shall have occurred:

          (a)  failure to  deliver  the shares of Common  Stock  required  to be
     delivered upon  conversion of the shares of Series C Preferred Stock in the
     manner and at the time  required  by Section 5 of the  Securities  Purchase
     Agreement; or

          (c) failure of the Corporation to have authorized the number of shares
     of  Common  Stock  issuable  upon  conversion  of the  shares  of  Series C
     Preferred  Stock or exercise of the Stock Purchase  Warrants (as defined in
     the Securities Purchase Agreement); or

          (d) failure on the part of the  Corporation to duly observe or perform
     any of the provisions of this Amended Certificate of Designations or any of
     its other  covenants or  agreements  contained in the  Securities  Purchase
     Agreement,  or to cure any material breach in a material  representation or
     covenant contained in the Securities Purchase Agreement or the Registration
     Rights  Agreement  for a period  of ten (10)  days  after the date on which
     written notice of such failure or breach  requiring the same to be remedied
     has been given by a registered holder of shares of Series C Preferred Stock
     to the Corporation;

          then,  and in each and every  such  case,  so long as such  redemption
     event has not been remedied, the holders of not less than fifty-one percent
     (51%) of the shares of Series C Preferred Stock then outstanding, by notice
     in writing to the Corporation (the date

                                        8
<PAGE>

     of  such  notice  the  "Redemption  Notice  Date"),  may  demand  that  the
     Corporation  redeem, and the Corporation shall redeem, each share of Series
     C  Preferred  Stock  then  outstanding  at a price per  share  equal to one
     hundred  twenty-five  percent (125%) of the sum of (x) the Stated Value and
     (y) the aggregate  accrued and unpaid  dividends on such Redemption  Notice
     Date

     For purposes of this Section I "Material  Subsidiary"  means any subsidiary
with  respect to which the  Corporation  has  directly or  indirectly  invested,
loaned, advanced or guaranteed the obligations of, an aggregate amount exceeding
fifteen percent (15%) of the  Corporation's  gross assets,  or the Corporation's
proportionate  share  of the  assets  or  net  income  of  which  (based  on the
subsidiary's most recent financial  statements)  exceed fifteen percent (15%) of
the  Corporation's  gross  assets  or net  income,  respectively,  or the  gross
revenues of which  exceed  fifteen  percent  (15%) of the gross  revenues of the
Corporation  based upon the most recent financial  statements of such subsidiary
and the Corporation.

     J.  Amendment.  This Amended  Certificate  of  Designations  constitutes an
agreement  between  the  Corporation  and the  holders of the Series C Preferred
Stock. The Corporation shall not amend this Amended  Certificate of Designations
or alter or repeal the preferences,  rights, powers or other terms of the Series
C  Preferred  Stock so as to affect  adversely  the  Series C  Preferred  Stock,
without  the  written  consent or  affirmative  vote of the  holders of at least
sixty-six and two-thirds  percent  (66-2/3%) of the then  outstanding  shares of
Series C Preferred Stock, given in writing or

                                        9
<PAGE>

by vote at a meeting,  consenting or voting (as the case may be) separately as a
class.

     IN WITNESS WHEREOF,  USA Biomass  Corporation has caused its corporate seal
to be hereunto affixed and this certificate to be signed by Fred H. Behrens, its
Chairman,  and attested by Hilly G. Jones, its Secretary,  this 5th day of July,
2000.

                                       USA BIOMASS CORPORATION

                                     By: /s/
                                           ------------------------
                                           Name:  Fred H. Behrens
                                           Title:  Chairman

Attest:

By:

     Name:  Hilly G. Jones Title:  Secretary

                                       10

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