Document:

EXHIBIT 4.1

                           CERTIFICATE OF DESIGNATION,
                          OF THE RIGHTS AND PREFERENCES
                                       OF
                      SERIES A CONVERTIBLE PREFERRED STOCK
                                       OF
                         HY-TECH TECHNOLOGY GROUP, INC.

         Hy-Tech  Technology Group,  Inc., a corporation  organized and existing
under the laws of the State of Delaware (the  "Company"),  hereby certifies that
the following  resolutions were adopted by the Board of Directors of the Company
pursuant to the  authority  of the Board of Directors as required by Section 151
of the Delaware Business Corporation Act (the "DGCL").

         RESOLVED,  that pursuant to the authority  granted to and vested in the
Board of Directors of this Company (the "Board of  Directors" or the "Board") in
accordance with the provisions of its Articles of Incorporation and Bylaws, each
as amended through the date hereof,  the Board of Directors hereby  authorizes a
series of the Company's  previously  authorized Preferred Stock, $.001 par value
(the "Preferred Stock"), and hereby states the designation and number of shares,
and fixes the relative rights, preferences,  privileges, powers and restrictions
thereof as follows:

I.  CERTAIN DEFINITIONS

         For purposes of this Certificate of Designation,  capitalized terms are
defined in this Certificate of Designation or shall have the following meanings:

         "Change of Control" means the acquisition,  directly or indirectly,  by
any Person of ownership  of, or the power to direct the exercise of voting power
with respect to, a majority of the issued and  outstanding  voting shares of the
Company, excluding any acquisition arising from the conversion into Common Stock
of Series A Preferred Stock.

         "Common  Stock" means the common  stock of the Company,  par value .001
per share.

          "Issuance  Date"  means the date of initial  issuance  of the Series A
Preferred Stock.

         "Per Share Market  Value" of the Common  Stock means on any  particular
date (a) the last sale  price of  shares of Common  Stock on such date or, if no
such sale takes place on such date, the last sale price on the most recent prior
date, in each case as officially  reported on the principal national  securities
exchange on which the Common Stock is then listed or admitted to trading, or (b)
if the Common  Stock is not then listed or  admitted to trading on any  national
securities  exchange,  the closing bid price per share as reported by Nasdaq, or
(c) if the Common Stock is not then listed or admitted to trading on the Nasdaq,
the closing bid price per share of the Common  Stock on such date as reported on
the OTCBB or if there is no such price on such date,  then the last bid price on
the date nearest  preceding  such date, or (d) if the Common Stock is not quoted
on the OTCBB,  the closing bid price for a share of Common Stock on such date in
the  over-the-counter  market as  reported  by the  Pinksheets  LLC (or  similar
organization  or agency  succeeding to its functions of reporting  prices) or if
there is no such price on such date, then the last bid price on the date nearest

                                       1
<PAGE>

preceding  such date, or (e) if the Common Stock is no longer  publicly  traded,
the fair  market  value  of a share of the  Common  Stock  as  determined  by an
Appraiser (as defined in the Certificate of Designation)  selected in good faith
by the holders of a majority of the Series A Preferred Stock; provided, however,
that the Company,  after receipt of the  determination by such Appraiser,  shall
have the right to select an additional Appraiser, in which case, the fair market
value  shall  be  equal  to the  average  of the  determinations  by  each  such
Appraiser.

         "Person"  means an individual  or a  corporation,  partnership,  trust,
incorporated or  unincorporated  association,  joint venture,  limited liability
company, joint stock company,  government (or an agency or political subdivision
thereof) or other entity of any kind.

         "Trading  Day" means (a) a day on which the  Common  Stock is quoted on
the OTCBB or principal stock exchange on which the Common Stock has been listed,
or (b) if the Common Stock is not quoted on the OTCBB or any stock  exchange,  a
day on which  the  Common  Stock is quoted in the  over-the-counter  market,  as
reported by the National  Association of Securities Dealers,  Inc. ("NASD"),  or
(c) if the  Common  Stock is not  quoted on the NASD,  a day on which the Common
Stock is quoted in the over-the-counter market as reported by the Pinksheets LLC
(or any similar  organization  or agency  succeeding  its functions of reporting
prices).

                           II. DESIGNATION AND AMOUNT

         The  designation  of this series,  which consists of one hundred twenty
five  thousand  (125,000)  shares  of  Preferred  Stock,  is  the  Series  A  5%
Convertible  Preferred  Stock (the  "Series A  Preferred  Stock") and the stated
value shall be U.S. one dollar ($1.00) per share (the "Stated Value").

                                 III. DIVIDENDS

         The holder of the shares of Series A Preferred  Stock shall be entitled
to receive  dividends  at the rate of five  percent (5%) per annum on the stated
value of the Series A Preferred Stock before dividends are declared on any other
outstanding  shares of stock of the  Company.  The  dividends so payable will be
paid on each  anniversary  date of the Issuance Date to the person in whose name
the Series A  Preferred  Stock is  registered.  At the time such  dividends  are
declared and payable, the Company, in its sole discretion,  may elect to pay the
dividends  in cash or in the form of Common  Stock If paid in the form of Common
Stock, the amount of stock to be issued will be calculated as follows: the value
of the stock shall be the Closing Bid Price on the date the dividend is declared
and a number of shares of Common  Stock with a value  equal to the amount of the
dividend shall be issued. No fractional shares will be issued; therefore, in the
event that the value of the Common Stock per share does not equal the  dividend,
the Company will pay the balance in cash.

                                 IV. CONVERSION

         (a)  Each  outstanding  share  of  Series A  Preferred  Stock  shall be
convertible into the number of shares of Common Stock determined by dividing the
Stated  Value by the  Conversion  Price as defined  below,  at the option of the
Holder in whole or in part,  at any time  commencing  on or after  the  Issuance

                                       2
<PAGE>

Date;  provided that any  conversion  under this section must be made during the
ten (10) day period  immediately  following  the date on which the Company files
with the Securities and Exchange  Commission any periodic  report on form 10QSB,
10-KSB or the equivalent form;  provided further that, any conversion under this
Section  IV(a) shall be for a minimum  Stated  Value of  $10,000.00  of Series A
Preferred  Stock.  The Holder  shall effect  conversions  by sending the form of
conversion  notice attached hereto as Appendix I (the "Notice of Conversion") in
the manner set forth in Section IV(i).  Each Notice of Conversion  shall specify
the Stated Value of Series A Preferred Stock to be converted.  The date on which
such conversion is to be effected (the  "Conversion  Date") shall be on the date
the Notice of Conversion is delivered  pursuant to Section IV(i) hereof.  Except
as provided herein, each Notice of Conversion, once given, shall be irrevocable.
Upon the entire conversion of the Series A Preferred Stock, the certificates for
such Series A Preferred Stock shall be returned to the Company for cancellation.

         (b) Not later than ten (10)  Business Days after the  Conversion  Date,
the  Company  will  deliver  to the  Holder (i) a  certificate  or  certificates
representing  the  number  of shares of Common  Stock  being  acquired  upon the
conversion  of the  Series A  Preferred  Stock and (ii) once  received  from the
Company, the Series A Preferred Stock in principal amount equal to the principal
amount of the Series A Preferred Stock not converted;  provided,  however,  that
the Company shall not be obligated to issue  certificates  evidencing the shares
of Common Stock issuable upon  conversion of any Series A Preferred  Stock until
the Series A Preferred Stock are either  delivered for conversion to the Company
or any transfer agent for the Series A Preferred  Stock or Common Stock,  or the
Holder notifies the Company that such Series A Preferred Stock certificates have
been lost, stolen or destroyed and provides an agreement  reasonably  acceptable
to the  Company  to  indemnify  the  Company  from  any loss  incurred  by it in
connection  therewith.  In the case of a  conversion  pursuant  to a  Notice  of
Conversion,  if such  certificate or certificates  are not delivered by the date
required  under this Section IV(b),  the Holder shall be entitled,  by providing
written  notice to the  Company  at any time on or before  its  receipt  of such
certificate or certificates  thereafter,  to rescind such  conversion,  in which
event the Company shall immediately return the Series A Preferred Stock tendered
for conversion.

         (c) The Conversion  Price for each share of Series A Preferred Stock in
effect on any  Conversion  Date shall be the LESSER of (a) seventy  five percent
(75%) of the average  closing bid price of the Common Stock over the twenty (20)
trading days  immediately  preceding the date of  conversion or (b) $0.005.  For
purposes of determining the closing bid price on any day,  reference shall be to
the closing  bid price for a share of Common  Stock on such date on the NASD OTC
Bulletin  Board,  as reported on  Bloomberg,  L.P. (or similar  organization  or
agency succeeding to its functions of reporting prices).

         (d) (i) If the Company,  at any time while any Series A Preferred Stock
are outstanding, (a) shall pay a stock dividend or otherwise make a distribution
or distributions  on shares of its Junior  Securities (as defined below) payable
in shares of its capital stock (whether payable in shares of its Common Stock or
of capital stock of any class), (b) subdivide outstanding shares of Common Stock
into a larger number of shares,  (c) combine  outstanding shares of Common Stock
into a smaller number of shares, or (d) issue by  reclassification  of shares of
Common Stock any shares of capital stock of the Company,  the  Conversion  Price

                                       3
<PAGE>

designated  in Section  IV(a)  shall be  multiplied  by a fraction  of which the
numerator  shall  be the  number  of  shares  of  Common  Stock  of the  Company
outstanding  before such event and of which the denominator  shall be the number
of shares of Common Stock  outstanding  after such event.  Any  adjustment  made
pursuant to this Section IV(d)(i) shall become effective  immediately  after the
record date for the  determination  of  stockholders  entitled  to receive  such
dividend  or  distribution  and shall  become  effective  immediately  after the
effective date in the case of a subdivision, combination or reclassification.

                  (ii) If the  Company,  at any time  while  Series A  Preferred
Stock are outstanding,  shall distribute to all holders of Common Stock (and not
to Holders of Series A Preferred  Stock) evidences of its indebtedness or assets
or rights or warrants to subscribe  for or purchase  any  security  then in each
such case the  Conversion  Price at which each  Series A  Preferred  Stock shall
thereafter be  convertible  shall be determined by  multiplying  the  Conversion
Price in effect  immediately prior to the record date fixed for determination of
stockholders  entitled to receive such  distribution  by a fraction of which the
denominator shall be the Per Share Market Value of Common Stock determined as of
the record date mentioned  above,  and of which the numerator  shall be such Per
Share  Market  Value of the Common  Stock on such record date less the then fair
market  value at such  record  date of the portion of such assets or evidence of
indebtedness so distributed  applicable to one outstanding share of Common Stock
as determined by the Board of Directors in good faith; provided, however that in
the event of a distribution exceeding ten percent (10%) of the net assets of the
Company,  such fair market value shall be determined by a nationally  recognized
or major  regional  investment  banking  firm or firm of  independent  certified
public accountants of recognized  standing (which may be the firm that regularly
examines the financial  statements of the Company) (an "Appraiser")  selected in
good faith by the Holders of a majority of the principal  amount of the Series A
Preferred Stock then outstanding; and provided, further, that the Company, after
receipt of the determination by such Appraiser shall have the right to select an
additional Appraiser,  in which case the fair market value shall be equal to the
average  of the  determinations  by each  such  Appraiser.  In  either  case the
adjustments  shall be  described  in a statement  provided to the Holder and all
other Holders of Series A Preferred  Stock of the portion of assets or evidences
of indebtedness  so distributed or such  subscription  rights  applicable to one
share  of  Common  Stock.  Such  adjustment  shall  be made  whenever  any  such
distribution  is made and shall become  effective  immediately  after the record
date mentioned above.

                  (iii) All calculations  under this Article IV shall be made to
the nearest  1/1000th of a cent or the nearest  1/1000th of a share, as the case
may be. Any calculation  over .005 shall be rounded up to the next cent or share
and any calculation less than .005 shall be rounded down to the previous cent or
share.

                   (iv) Whenever the  Conversion  Price is adjusted  pursuant to
Section  IV(d)(ii)  or (iii),  the Company  shall within ten (10) days after the
determination  of the new Fixed  Conversion Price mail and fax to the Holder and
to each other Holder of Series A Preferred  Stock,  a notice  setting  forth the
Fixed Conversion Price after such adjustment and setting forth a brief statement
of the facts requiring such adjustment.

                  (v) In case of any  reclassification  of the Common Stock, any
consolidation or merger of the Company with or into another person,  the sale or
transfer  of  all or  substantially  all of the  assets  of the  Company  or any

                                       4
<PAGE>

compulsory  share exchange  pursuant to which the Common Stock is converted into
other securities, cash or property, then each holder of Series A Preferred Stock
then  outstanding  shall  have the right  thereafter  to convert  such  Series A
Preferred Stock only into the shares of stock and other  securities and property
receivable  upon or deemed to be held by holders of Common Stock  following such
reclassification,  consolidation,  merger,  sale,  transfer  or  share  exchange
(except in the event the property is cash,  then the Holder shall have the right
to convert the Series A Preferred  Stock and receive  cash in the same manner as
other stockholders), and the Holder shall be entitled upon such event to receive
such amount of  securities  or  property as the shares of the Common  Stock into
which such Series A Preferred Stock could have been converted  immediately prior
to  such  reclassification,  consolidation,  merger,  sale,  transfer  or  share
exchange would have been entitled. The terms of any such consolidation,  merger,
sale,  transfer or share  exchange shall include such terms so as to continue to
give to the holder the right to receive the  securities or property set forth in
this Section IV(d)(v) upon any conversion following such consolidation,  merger,
sale,  transfer or share  exchange.  This  provision  shall  similarly  apply to
successive reclassifications, consolidations, mergers, sales, transfers or share
exchanges.

                  (vi) If:

                           (A)      the Company shall declare a dividend (or any
                                    other distribution) on its Common Stock; or

                           (B)      the   Company   shall   declare   a  special
                                    nonrecurring   cash   dividend   on   or   a
                                    redemption of its Common Stock; or

                           (C)      the Company shall  authorize the granting to
                                    all  holders of the Common  Stock  rights or
                                    warrants to  subscribe  for or purchase  any
                                    shares of  capital  stock of any class or of
                                    any rights; or

                           (D)      the  approval  of  any  stockholders  of the
                                    Company shall be required in connection with
                                    any  reclassification of the Common Stock of
                                    the  Company  (other than a  subdivision  or
                                    combination  of the  outstanding  shares  of
                                    Common Stock),  any  consolidation or merger
                                    to which the Company is a party, any sale or
                                    transfer of all or substantially  all of the
                                    assets  of the  Company,  or any  compulsory
                                    share  exchange  whereby the Common Stock is
                                    converted  into  other  securities,  cash or
                                    property; or

                           (E)      the Company shall authorize the voluntary or
                                    involuntary   dissolution,   liquidation  or
                                    winding-up of the affairs of the Company;

then the Company shall cause to be filed at each office or agency maintained for
the purpose of  conversion  of Series A Preferred  Stock,  and shall cause to be
mailed  and faxed to the  Holders  of  Series A  Preferred  Stock at their  last
addresses  as it shall  appear upon the Series A Preferred  stock  register,  at
least thirty (30) calendar days prior to the applicable record or effective date
hereinafter  specified, a notice stating (x) the date on which a record is to be

                                       5
<PAGE>

taken for the  purpose of such  dividend,  distribution,  redemption,  rights or
warrants, or if a record is not to be taken, the date as of which the holders of
Common  Stock  of  record  to  be  entitled  to  such  dividend,  distributions,
redemption,  rights or warrants are to be  determined,  or (y) the date on which
such reclassification,  consolidation,  merger, sale, transfer,  share exchange,
dissolution,  liquidation or winding-up is expected to become effective, and the
date as of which it is expected  that holders of Common Stock of record shall be
entitled  to  exchange  their  shares of Common  Stock for  securities  or other
property deliverable upon such  reclassification,  consolidation,  merger, sale,
transfer,  share  exchange,  dissolution,  liquidation or winding-up;  provided,
however,  that the failure to mail such  notice or any defect  therein or in the
mailing  thereof shall not affect the validity of the corporate  action required
to be specified in such notice.

          (e) In the  event  that the  Holder  converts  any  shares of Series A
Preferred  Stock,  the Holder shall also have the right to acquire one (1) share
of Common Stock for each share of Common Stock issued upon such  conversion (the
"Rights").  The Rights shall be  exercisable  for cash,  at a price per share of
Common  Stock equal to the average  closing Per Share Market Value of the Common
Stock in the five (5) business days preceding the date of conversion. The rights
shall  expire one year after the date of  conversion  of the Series A  Preferred
Stock from which the Rights arose.

          (f) The Company  covenants  that it will at all times reserve and keep
available out of its authorized and unissued Common Stock solely for the purpose
of issuance upon conversion of Series A Preferred Stock as herein provided, free
from preemptive rights or any other actual contingent purchase rights of persons
other than the  Holders of Series A  Preferred  Stock,  such number of shares of
Common  Stock as shall be issuable  (taking  into  account the  adjustments  and
restrictions  of Section  IV(d) hereof) upon the  conversion of all  outstanding
shares of Series A Preferred  Stock.  The Company  covenants  that all shares of
Common Stock that shall be so issuable  shall,  upon issue,  be duly and validly
authorized, issued and fully paid and nonassessable.

         (g) No  fractional  shares of Common  Stock  shall be  issuable  upon a
conversion  hereunder  and the number of shares to be issued shall be rounded up
to the nearest  whole share.  If a  fractional  share  interest  arises upon any
conversion hereunder, the Company shall eliminate such fractional share interest
by issuing the Holder an additional full share of Common Stock.

         (h) The  issuance  of  certificates  for  shares  of  Common  Stock  on
conversion  of Series A  Preferred  Stock  shall be made  without  charge to the
Holder for any documentary stamp or similar taxes that may be payable in respect
of the issue or delivery of such  certificate,  provided  that the Company shall
not be  required  to pay any tax that may be payable in respect of any  transfer
involved in the issuance and delivery of any such certificate upon conversion in
a name other than that of the Holder and the  Company  shall not be  required to
issue or  deliver  such  certificates  unless  or until the  person  or  persons
requesting  the  issuance  thereof  shall have paid to the Company the amount of
such tax or shall have  established to the satisfaction of the Company that such
tax has been paid.

         (i) Series A  Preferred  Stock  converted  into  Common  Stock shall be
canceled upon conversion.

                                       6
<PAGE>

         (j) Each  Notice  of  Conversion  shall be  given by  facsimile  to the
Company no later than 4:00 pm EST.  Any such  notice  shall be deemed  given and
effective upon the  transmission  of such  facsimile at the facsimile  telephone
number  specified  in the  Purchase  Agreement.  In the event  that the  Company
receives the Notice of Conversion after 4:00 p.m. EST, the Conversion Date shall
be deemed to be the next  Business  Day. In the event that the Company  receives
the Notice of  Conversion  after the end of the  Business  Day,  notice  will be
deemed to have been given the next Business Day.

                                 V. REDEMPTION

         At any time after the Issuance Date through the fifth (5th) anniversary
of the  Issuance  Date,  the  Company  shall  have  the  option  to  redeem  any
unconverted  shares of the Series A  Preferred  Stock,  either in part or whole,
upon no less than thirty (30) days written  notice  thereof given to the Holders
thereof,  at an amount equal to one hundred  thirty percent (130%) of the stated
value of the unconverted Series A Preferred Stock (the "Redemption  Price") plus
accrued and unpaid dividends.

         On the fifth (5th)  anniversary of the Issuance Date, the Company shall
redeem any  unconverted  shares of the Series A  Preferred  Stock,  at an amount
equal to one  hundred  percent  (100%) of the  stated  value of the  unconverted
Series A  Preferred  Stock (the  "Redemption  Price")  plus  accrued  and unpaid
dividends.

         No holder of Series A  Preferred  Stock may  demand  that the  Series A
Preferred Stock be redeemed.

                                    VI. RANK

         The Series A Preferred  Stock shall,  as to distribution of assets upon
liquidation,  dissolution  or winding up of the  Company,  rank (i) prior to the
Company's  Common Stock and Series C Preferred  Stock (ii) prior to any class or
series of capital  stock of the Company  hereafter  created  that, by its terms,
ranks junior to the Series A Preferred Stock ("Junior Securities"); (iii) junior
to any class or series of capital stock of the Company  hereafter  created which
by its terms ranks senior to the Series A Preferred Stock ("Senior Securities");
(iv)  pari  passu  with any  other  series  of  preferred  stock of the  Company
hereafter created which by its terms ranks on a parity ("Pari Passu Securities")
with the Series A Preferred Stock; and prior to.

                           VII. LIQUIDATION PREFERENCE

         If the Company shall commence a voluntary  case under the U.S.  Federal
bankruptcy laws or any other applicable  bankruptcy,  insolvency or similar law,
or consent to the entry of an order for relief in an involuntary  case under any
law  or to the  appointment  of a  receiver,  liquidator,  assignee,  custodian,
trustee,  sequestrator  (or other  similar  official)  of the  Company or of any
substantial  part of its property,  or make an assignment for the benefit of its
creditors,  or admit in writing its inability to pay its debts generally as they

                                       7
<PAGE>

become due,  or if a decree or order for relief in respect of the Company  shall
be entered by a court having jurisdiction in the premises in an involuntary case
under  the U.S.  Federal  bankruptcy  laws or any other  applicable  bankruptcy,
insolvency  or  similar  law  resulting  in  the   appointment  of  a  receiver,
liquidator,   assignee,  custodian,  trustee,  sequestrator  (or  other  similar
official) of the Company or of any substantial part of its property, or ordering
the winding up or liquidation of its affairs, and any such decree or order shall
be unstayed  and in effect for a period of sixty (60)  consecutive  days and, on
account of any such event, the Company shall liquidate,  dissolve or wind up, or
if the Company shall otherwise  liquidate,  dissolve or wind up, including,  but
not  limited  to,  the  sale  or  transfer  of all or  substantially  all of the
Company's  assets in one  transaction or in a series of related  transactions (a
"Liquidation Event"), no distribution shall be made to the holders of any shares
of capital  stock of the Company  (other than Senior  Securities  and Pari Passu
Securities) upon liquidation, dissolution or winding up unless prior thereto the
Holders  of  shares  of  Series  A  Preferred  Stock  shall  have  received  the
Liquidation  Preference (as defined below) with respect to each share.  If, upon
the  occurrence  of a  Liquidation  Event,  the assets and funds  available  for
distribution  among the Holders of the Series A  Preferred  Stock and Holders of
Pari  Passu  Securities  shall be  insufficient  to permit  the  payment to such
holders of the preferential amounts payable thereon,  then the entire assets and
funds  of the  Company  legally  available  for  distribution  to the  Series  A
Preferred Stock and the Pari Passu Securities shall be distributed ratably among
such shares in proportion to the ratio that the Liquidation  Preference  payable
on each such share bears to the aggregate Liquidation  Preference payable on all
such shares. The purchase or redemption by the Company of stock of any class, in
any manner permitted by law, shall not, for the purposes hereof,  be regarded as
a  liquidation,   dissolution  or  winding  up  of  the  Company.   Neither  the
consolidation  or merger of the  Company  with or into any other  entity nor the
sale or transfer by the Company of  substantially  all of its assets shall,  for
the purposes hereof, be deemed to be a liquidation, dissolution or winding up of
the Company.  The  "Liquidation  Preference" with respect to a share of Series A
Preferred  Stock  means  an  amount  equal  to the  Stated  Value  thereof.  The
Liquidation Preference with respect to any Pari Passu Securities shall be as set
forth in the Certificate of Designation filed in respect thereof.

                               VIII. VOTING RIGHTS

         The  Holders  of the  Series A  Preferred  Stock  have no voting  power
whatsoever,  except as provided  by the DGCL.  To the extent that under the DGCL
the vote of the Holders of the Series A Preferred Stock,  voting separately as a
class or series,  as applicable,  is required to authorize a given action of the
Company,  the affirmative  vote or consent of the Holders of at least a majority
of the then outstanding  shares of the Series A Preferred Stock represented at a
duly held  meeting at which a quorum is  present  or by  written  consent of the
Holders  of at least a  majority  of the then  outstanding  shares  of  Series A
Preferred  Stock  (except as  otherwise  may be  required  under the DGCL) shall
constitute  the  approval of such action by the class.  To the extent that under
the DGCL  Holders  of the Series A  Preferred  Stock are  entitled  to vote on a
matter with holders of Common Stock, voting together as one class, each share of
Series A  Preferred  Stock  shall be  entitled to a number of votes equal to the
number of shares of Common Stock into which it is then  convertible  (subject to
the limitations contained in Article IV) using the record date for the taking of
such  vote of  shareholders  as the date as of  which  the  Conversion  Price is
calculated.

                                       8
<PAGE>

                                IX. MISCELLANEOUS

         (a) If any shares of Series A Preferred Stock are converted pursuant to
Article  IV, the shares so  converted  shall be  canceled,  shall  return to the
status of authorized, but unissued preferred stock of no designated series.

         (b) Upon  receipt by the Company of (i)  evidence  of the loss,  theft,
destruction or mutilation of any Preferred Stock  certificate(s) and (ii) (y) in
the case of loss, theft or destruction,  of indemnity (without any bond or other
security)  reasonably  satisfactory  to the  Company,  or (z)  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.  However,  the  Company  shall not be
obligated to reissue such lost or stolen Preferred Stock  certificate(s)  if the
Holder contemporaneously requests the Company to convert such Series A Preferred
Stock.

         (c) Upon  submission  of a Notice of Conversion by a Holder of Series A
Preferred  Stock,  (i) the shares covered thereby shall be deemed converted into
shares  of  Common  Stock  and  (ii) the  Holder's  rights  as a Holder  of such
converted  shares  of  Series A  Preferred  Stock  shall  cease  and  terminate,
excepting only the right to receive certificates for such shares of Common Stock
and to any remedies  provided herein or otherwise  available at law or in equity
to such  Holder  because of a failure by the Company to comply with the terms of
this Certificate of Designation.  Notwithstanding the foregoing, if a Holder has
not  received  certificates  for all shares of Common  Stock  prior to the tenth
(10th)  business day after the expiration of the Delivery Period with respect to
a conversion of Series A Preferred Stock for any reason, then (unless the Holder
otherwise  elects  to  retain  its  status  as a holder  of  Common  Stock by so
notifying the Company within five (5) business days after the expiration of such
ten (10)  business day period) the Holder shall regain the rights of a Holder of
Series A Preferred  Stock with  respect to such  unconverted  shares of Series A
Preferred  Stock and the  Company  shall,  as soon as  practicable,  return such
unconverted  shares to the Holder.  In all cases, the Holder shall retain all of
its rights and remedies for the Company's  failure to convert Series A Preferred
Stock.

         (d) 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),  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. The Company acknowledges that
a breach by it of its obligations  hereunder will cause  irreparable harm to the
Holders  of Series A  Preferred  Stock  and that the  remedy at law for any such
breach may be inadequate. The Company therefore agrees, in the event of any such
breach or threatened breach,  that the Holders of 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.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       9
<PAGE>

         IN  WITNESS  WHEREOF,  the  undersigned,   being  the  CEO  of  Hy-Tech
Technology  Group,  Inc.,  hereby  declares  under  penalty of perjury  that the
foregoing is a true and correct copy of the  Certificate  of  Designation of the
Rights and  Preferences of the Series A Convertible  Preferred  Stock of Hy-Tech
Technology  Group,  Inc.  duly  adopted  by the Board of  Directors  of  Hy-Tech
Technology  Group,  Inc. on July 9, 2004, and this Certificate of Designation is
executed by the undersigned on behalf of Hy-Tech Technology Group, Inc. this 9th
day of July 2004.

                                          Hy-Tech Technology Group, Inc.

                                          By: /s/ Martin Nielson
                                              --------------------------
                                              Martin Nielson, CEO

                                       10
<PAGE>

                                   APPENDIX I

                              NOTICE OF CONVERSION
                          AT THE ELECTION OF THE HOLDER

(To be Executed by the Registered Holder
in order to Convert the Series A Preferred  Stock of Hy-Tech  Technology  Group,
Inc.)

The  undersigned  hereby  irrevocably  elects to convert  the Series A Preferred
Stock into  shares of Common  Stock,  par value  $.____  per share (the  "Common
Stock"),  of Hy-Tech  Technology  Group,  Inc. (the "Company")  according to the
provisions of the  Certificate  of  Designation  hereof,  as of the date written
below.  If  shares  are  to be  issued  in  the  name  of a  person  other  than
undersigned,  the  undersigned  will pay all transfer taxes payable with respect
thereto and is delivering  herewith such certificates and opinions as reasonably
requested by the Company in accordance therewith.

Conversion calculations:
                                 -----------------------------------------------
                                   Date to Effect Conversion

                                 -----------------------------------------------
                                   Number of Shares to be Converted

                                 -----------------------------------------------
                                   Applicable Conversion Price

                                 -----------------------------------------------
                                   Number of Shares to be Issued Upon Conversion

                                 -----------------------------------------------
                                   Signature

                                 -----------------------------------------------
                                   Name

                                 -----------------------------------------------
                                  Address

                                       11Exhibit 4.1

 

EMAIL REAL ESTATE.COM, INC.

CERTIFICATE OF DESIGNATION OF
SERIES A CONVERTIBLE PREFERRED STOCK 

____________________________________________

EMAIL REAL ESTATE.COM, INC., a corporation organized and existing under the laws of the State of Colorado (the “Corporation”), does hereby certify that, pursuant to the authority conferred on the Board of Directors of the Corporation by the Articles of Incorporation, as amended and restated to date (the “Articles of Incorporation”), of the Corporation and in accordance with Section 7-106-102 of the Colorado Business Corporation Act, the Board of Directors of the Corporation adopted the following resolution establishing a series of Two Million Three Hundred Ninety Five Thousand Two Hundred Ten (2,395,210) shares of Preferred Stock of the Corporation designated as “Series A Convertible Preferred Stock”:

 

RESOLVED, that pursuant to the authority conferred on the Board of Directors of this Corporation by the Articles of Incorporation, a series of Preferred Stock, par value $0.01 per share, of the Corporation is hereby established and 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:

    1.    Designation. The series of preferred stock established hereby shall be designated the “Series A Convertible Preferred Stock” (and shall be referred to herein as the “Preferred Shares”) and the authorized number of Preferred Shares shall be Two Million Three Hundred Ninety Five Thousand Two Hundred Ten (2,395,210).

    2.    Rank. With respect to any Liquidation Event (as defined herein), the Preferred Shares shall rank prior to the Corporation’s common stock, par value $.001 per share (the “Common Stock”), and the Corporation’s Series B Convertible Preferred Stock, par value $.01 per share (the “Series B Shares,” and together with the Common Stock, the “Junior Securities”).

    3.    Voting Rights. Along with the holders of the Common Stock, each holder of Preferred Shares shall have one vote on all matters submitted to the holders of Common Stock for each share of Common Stock into which such Preferred Shares would be converted if converted as of the date of such vote based on the Conversion Ratio (as herein defined) then in effect, but regardless as to whether the Preferred Shares are then convertible. In addition, without the affirmative vote of the holders (acting together as a class) of at least a majority of Preferred Shares at the time outstanding given in person or by proxy at any annual or special meeting, or, if permitted by law, in writing without a meeting, the Corporation shall not alter, change or amend the preferences or rights of the Preferred Shares.

    4.    Dividends. The Preferred Shares shall not be entitled to receive a dividend and, as long as any Preferred Shares remain outstanding, no dividends shall be declared on any Junior Security without the consent in writing of holders of at least a majority of the Preferred Shares then outstanding. Subject to the foregoing sentence, in the event that the Corporation declares or pays any dividends upon the Common Stock (whether payable in cash, securities or other property), other than dividends payable solely in shares of Common Stock, the Corporation shall also declare and pay to the holders of the Preferred Shares at the same time that it declares and pays such dividends to the holders of the Common Stock, the dividends which would have been declared and paid with respect to the Common Stock issuable upon conversion of the Preferred Shares had all of the
outstanding Preferred Shares been converted immediately prior to the record date for such dividend or, if no record date is fixed, the date as of which the record holders of Common Stock entitled to such dividends are to be determined; provided that for purposes of determining the number of shares of Common Stock into which the Preferred Shares are converted, it shall be assumed that a Recapitalization Event has been effected.

 

	 
	 	1	 
	

	 

 

    5.    Liquidation Right and Preference. In the event of the liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary (a “Liquidation Event”), the holders of Preferred Shares shall be entitled to receive in cash, out of the assets of the Corporation, an amount per share for each outstanding Preferred Share equal to $3.34 (herein, “Liquidation Value”), before any payments shall be made or any assets distributed to the holders of any Junior Securities. If, upon any Liquidation Event, the assets of the Corporation are insufficient to pay the Liquidation Value, the holders of such Preferred Shares shall share pro rata in any such distribution in proportion to the full amounts to which

they would otherwise be respectively entitled. After payment of the full Liquidation Value to which each holder of Preferred Shares is entitled, the holders of the Preferred Shares will not be entitled to any further participation as such in any distribution of assets of the Corporation.

    6.    Conversion Rights.

        (a)    Conversion Ratio. The Preferred Shares shall be initially convertible into Common Stock at the rate of 16.920814 shares of Common Stock per Preferred Share converted (the “Conversion Ratio”). The shares of Common Stock issuable upon conversion of the Preferred Shares shall be referred to herein as the “Conversion Shares.” The Conversion Ratio shall be subject to adjustment pursuant to Sections 8(a) and (b). For the avoidance of doubt, a Recapitalization Event shall trigger an appropriate adjustment to the Conversion Ratio under Section 8(a) and (b).

        (b)    Optional Conversion. Following the time upon which a Recapitalization Event becomes effective under all applicable provisions of the Colorado Business Corporation Act and the Corporation’s Articles of Incorporation and Bylaws, the Preferred Shares may be convertible into such number of shares of Common Stock based on the Conversion Ratio then in effect. As used herein, the term “Recapitalization Event” means a combination of the Corporation’s Common Stock on the basis of at least 1-for-12, or a merger with a wholly-owned subsidiary of the Corporation pursuant to which each outstanding share of Common Stock is to be exchanged for no more than 1/12 of a share of common stock of the su

rviving corporation in such merger.

        (c)    Automatic Conversion. The Preferred Shares shall, automatically and without any action on the part of the holders thereof, convert into a number of fully paid and nonassessable shares of Common Stock based on the then applicable Conversion Ratio upon the earlier of (i) such time as the United States Securities and Exchange Commission has declared effective a registration statement under the Securities Act of 1933, as amended (the “Securities Act”), covering the resale of Conversion Shares, or (ii) the date on which the Conversion Shares relating to such Preferred Shares are eligible for resale pursuant to Rule 144(k) promulgated under the Securities Act (or any successor rule thereto), but re

gardless of whether the holder of any such Preferred Shares is then deemed an affiliate of the Corporation; provided, however, in either case, that a Recapitalization Event has occurred. The Conversion Ratio shall be subject to adjustment pursuant to Sections 8(a) and (b).

 

	 
	 	2	 
	

	 

 

        (d)    Optional Conversion Mechanics. In order to exercise the conversion privilege described in paragraph (b) of this Section, a holder of Preferred Shares shall (1) notify the Corporation in writing of such holder’s intent to convert a specified portion of such shares (the “Conversion Notice” and the date of such notice which shall be the same or later than the date notice is given, the “Conversion Notice Date”) and (2) provide, on or prior to the Conversion Notice Date, to the Corporation at its principal office the certificate evidencing the Preferred Shares being converted, duly endorsed to the Corporation and accompanied by written

notice to the Corporation that the holder elects to convert a specified portion or all of such Preferred Shares. Preferred Shares converted in accordance with paragraph (b) of this Section shall be deemed to have been converted on the day of receipt by the Corporation of the certificate representing such shares for conversion in accordance with the foregoing provisions (the “Conversion Date”), and at such time the rights of the holder of such Preferred Shares other than the right to receive shares of Common Stock upon conversion of the Preferred Shares pursuant to the terms hereof, as such holder, shall cease and such holder shall be treated for all purposes as the record holder of Common Stock issuable upon conversion. As promptly as practicable on or after the Conversion Date, the Corporation shall issue and mail or deliver to such holder a certificate or certificates for the number of shares of Common Stock issuable upon conversion, computed to the

nearest full share, and a certificate or certificates for the balance of Preferred Shares surrendered, if any, not so converted into Common Stock. 

        (e)    Automatic Conversion Mechanics. The Corporation shall not be obligated to issue the shares of Common Stock issuable upon the automatic conversion of the Preferred Shares, as described in paragraph (c) of this Section, unless certificates evidencing such Preferred Shares are either delivered to the Corporation or the holder notifies the Corporation that such certificates have been lost, stolen or destroyed, and executes agreements satisfactory to the Corporation to indemnify the Corporation from any loss incurred by it in connection therewith. Upon the occurrence of any automatic conversion of the Preferred Shares pursuant to paragraph (c) of this Section, the holders of the Preferred Shares shall surrender the certificates

representing the Preferred Shares for which such automatic conversion has occurred to the Corporation and the Corporation shall cause its transfer agent to deliver the shares of Common Stock issuable upon such conversion to the holder within three business days of the holder’s delivery of the applicable Preferred Share certificate(s).

    7.    Preemptive Rights. Holders of Preferred Shares shall have no preemptive rights with respect to any future issuances of securities by the Corporation.

    8.    Other Terms of Preferred Shares.

        (a)    Stock Split, Stock Dividend, Recapitalization, etc. If the Corporation, at any time while any Preferred Shares are outstanding, (a) shall pay a stock dividend or otherwise make a distribution or distributions payable in shares of its capital stock (whether payable in shares of its Common Stock or of capital stock of any class), (b) subdivide outstanding shares of Common Stock into a larger number of shares, (c) combine outstanding shares of Common Stock into a smaller number of shares, or (d) issue by reclassification of shares of Common Stock any shares of capital stock of the Corporation, the Conversion Ratio in effect immediately prior thereto shall be adjusted so that the holder of any Preferred Shares thereafter surrendered for conversion shal

l be entitled to receive the number of shares of Common Stock which such holder would have owned or have been entitled to receive after the happening of any of the events described above had such Preferred Shares been converted immediately prior to the happening of such event or the record date therefor, whichever is earlier. Any adjustment made pursuant to this Section shall become effective immediately after the record date for the determination of shareholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or reclassification. 

	 
	 	3	 
	

	 

 

        (b)    No Impairment. Unless approved in accordance with Section 3 hereof the Corporation will not, by amendment of its Articles of Incorporation or this Certificate of Designation or through any reorganization, transfer of assets, 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 Corporation but will at all times in good faith assist in the carrying out of all the provisions of Section 8(a) 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 Preferred Shares against impairment. 

        (c)    Notices of Record Date. In the event that this Corporation shall propose at any time:

(i)         to declare any dividend or distribution upon its Common Stock, whether in cash, property, stock or other securities, whether or not a regular cash dividend and whether or not out of earnings or earned surplus (for avoidance of doubt, the foregoing phrase does not include any stock split or reverse stock split which results in an automatic adjustment of the Conversion Ratio purchase to Section 8(a) above);

(ii)        to effect any reclassification or recapitalization of its Common Stock outstanding involving a change in the Common Stock; or

(iii)   to merge with or into any other corporation (other than a merger in which the holders of the outstanding voting equity securities of the Corporation immediately prior to such merger hold more than fifty percent (50%) of the voting power of the surviving entity immediately following such merger), or sell, lease or convey all or substantially all its property or business, or to liquidate, dissolve or wind up;

then, in connection with each such event, this Corporation shall send to the holders of the Preferred Stock:

 

	 
	 	4	 
	

	 

 

(1)   at least ten (10) days’ prior written notice of the date on which a record shall be taken for such dividend, distribution or subscription rights (and specifying the date on which the holders of Common Stock shall be entitled thereto) or for determining rights to vote in respect of the matters referred to in (ii) and (iii) above; and

(2)   in the case of the matters referred to in (ii) and (iii) above, at least ten (10) days’ prior written notice of the date when the same shall take place (and specifying the date on which the holders of Common Stock shall be entitled to exchange their Common Stock for securities or other property deliverable upon the occurrence of such event).

Each such written notice shall be given by first class mail, postage prepaid, addressed to the holders of Preferred Shares at the address for each such holder as shown on the books of this Corporation and shall be deemed given when so mailed.

(d)    Reservation of Shares Issuable Upon Conversion. The Corporation shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of effecting the conversion of the shares of the Preferred Shares, such number of its shares of Common Stock as shall from time to time be sufficient to effect the conversion of all outstanding Preferred Shares; and if at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of all then outstanding Preferred Shares, the Corporation will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purpose.

(e)    Status of Converted Stock. In the event any Preferred Shares shall be converted pursuant to Section 6 hereof, (i) the Preferred Shares so converted shall be retired and cancelled and shall not be reissued and (ii) the authorized number of Preferred Shares set forth in Section 1 hereof shall be automatically reduced by the number of Preferred Shares so converted and the number of shares of the Corporation’s undesignated Preferred Stock shall be deemed increased by such number.

(f)    Loss, Theft, Destruction of Preferred Shares. Upon receipt of evidence satisfactory to the Corporation of the loss, theft, destruction or mutilation of certificates representing Preferred Shares and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security reasonably satisfactory to the Corporation, or, in the case of any such mutilation, upon surrender and cancellation of the Preferred Shares, the Corporation shall make, issue and deliver, in lieu of such lost, stolen, destroyed or mutilated certificates representing Preferred Shares, new certificates representing Preferred Shares of like tenor.

IN WITNESS WHEREOF, Email Real Estate.com, Inc. has caused this Certificate to be signed on its behalf, as of this 21st day of July, 2004.

 

	     	EMAIL REAL ESTATE.COM, INC.
	 	 
	 	 
	 	By:	/s/ Dan O’Meara 
	 	 	

	 	 	Dan O’Meara
	 	 	Its: President and Chief Executive Officer

   

 

	 
	 	5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]