Document:

Unassociated Document

    Exhibit
      10.2

     

    ESCROW
      AGREEMENT 

     

    This
      Agreement is made as of the 5th
      day of
      April, 2007, between American Gas Services, Inc., a corporation organized and
      existing under the laws of the State of Minnesota (“AGS”), the owner of
a
      60%
      joint venture interest in Taian AGS Pipeline Construction Co. Ltd., a joint
      venture enterprise in the City of Taian, Shandong province, the People's
      Republic of China
      ("TAGS"), American
      Gas Services, Inc. Consultants, a corporation existing under the laws of Florida
      (“AGS Consultants”, and collectively with AGS, the “Owner”),
      WPCS
      International Incorporated, a corporation organized and existing under the
      laws
      of the State of Delaware, with its principal offices at One
      East
      Uwchlan Avenue, Suite 301, Exton Pennsylvania 19341 ("WPCS"),
      and Sichenzia Ross Friedman Ference LLP, a New York limited liability
      partnership having offices at 1065 Avenue of the Americas, New York, New
      York 10018 (the "Escrow Agent").

     

    RECITALS

     

    The
      AGS,
      AGS Consultants and WPCS are parties to that certain Interest Purchase
      Agreement, dated as of even date herewith (the "Purchase Agreement"). WPCS
      and
      the Owner wish to provide for the escrow of cash and shares of WPCS common
      stock
      (the “Shares”) pursuant to the Purchase Agreement, and desire that the Escrow
      Agent hold such cash and Shares in connection therewith pursuant to the
      provisions of this Agreement, and the Escrow Agent is willing to hold such
      cash
      and Shares pursuant to the provisions of this Agreement. All capitalized terms
      contained herein and not otherwise defined shall have the meaning ascribed
      to
      them in the Purchase Agreement. In consideration of the premises and mutual
      covenants, agreements, representations and warranties contained herein, the
      parties hereby agree as follows:

     

    1. WPCS
      and
Owner
      hereby appoint the Escrow Agent to hold $80,000 in cash and 6,808 Shares (the
      "Escrowed Property"), in an attorney trust account, and the Escrow Agent accepts
      such appointment, subject to the terms and conditions hereof. WPCS has, prior
      to
      the execution of this Escrow Agreement, delivered by way of wire transfer to
      the
      Escrow Agent the cash portion of the Escrowed Property and will deliver the
      Shares to the Escrow Agent within three (3) business days of the Closing Date,
      hereby irrevocably instructs the Escrow Agent to deal with the Escrowed Property
      on and subject to the terms hereof. In executing this Escrow Agreement the
      Escrow Agent acknowledges receipt of the Escrowed Property and the instructions
      contained herein. Upon deposit of the Escrowed Property, the Escrow Agent shall
      provide written evidence of such deposit to the Owner and WPCS.

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

     

    2.
         
      (a) The
      Escrow Agent shall retain the Escrowed Property until the NTAV of the Company
      as
      of the Closing Date shall be determined. 

     

    (b) the
      Purchase Price shall be adjusted by an amount equal to 60% of the difference
      between (a) the net tangible asset value of TAGS as of the Closing Date, and
      (b)$3,300,000. Net tangible asset value is defined as total assets minus total
      liabilities minus intangible assets, calculated in accordance with Generally
      Accepted Accounting Principles (“NTAV”). Any shortfall from the $3,300,000 shall
      proportionately reduce the cash and stock components of the Purchase Price.
      The
      Escrow Agent shall only deliver the Escrowed Property upon (i) written
      notification signed by each of the Owner and WPCS of a final determination
      of
      the NTAV or (ii) delivery to the Escrow Agent of a written arbitration award
      with respect to the determination of the NTAV.

     

    (c)
       The
      balance of any amount remaining after the delivery of payments required pursuant
      to Section 2(b) above (the “Escrow Payment”) shall be delivered to the Owner
      within three (3) business days of the date of the escrow payments required
      by
      Section 2(b) above.

     

    3. The
      Escrow Agent shall, from time to time, deliver all or some of the Escrowed
      Property to WPCS or the Owner in accordance with such written instructions,
      jointly executed by WPCS and the Owner, as the Escrow Agent may
      receive.

     

    4. The
      Escrow Agent shall not be under any duty to give the Escrowed Property
      any greater degree of care than it gives its own similar property, and it shall
      have no liability hereunder, except for the willful breach or gross negligence
      of its duties hereunder.

    
      
        
        

      

      
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    5. The
      Escrow Agent shall have no duties or responsibilities except those expressly
      set
      forth herein, and no implied duties or obligations should be read into this
      Escrow Agreement against the Escrow Agent. The Escrow Agent need not refer
      to,
      and will not be bound by, the provisions of any other agreement, except for
      definitions of terms contained in the Purchase Agreement.

     

    6. The
      Escrow
      Agent may consult with counsel and shall be fully protected with respect to
      any
      action taken or omitted by it in good faith on advice of counsel.

     

    7. The
      Escrow Agent makes no representation as to the validity, value, genuineness
      or
      the collectibility of any security or other document or instrument held by
      or
      delivered to it.

     

    8. The
      Escrow Agent will receive no compensation for its services
      hereunder.

     

    9. In
      the
      event that the Escrow Agent shall be uncertain as to its duties or rights
      hereunder, or shall receive instructions from WPCS and the Owner, with respect
      to the Escrowed Property, which, in its opinion, are in conflict with any of
      the
      provisions hereof (i) it shall be entitled to refrain from taking any action,
      and in doing so shall not become liable in any way or to any person for its
      failure or refusal to comply with such conflicting demands, and it shall be
      entitled to continue so to refrain from acting and so refuse to act until it
      shall be directed otherwise, in writing, jointly by WPCS and the Owner or until
      it shall receive a final determination of a court of law, arbitration panel,
      or
      similar adjudicative body, or (ii) it may commence as interpleader action in
      any
      court of competent jurisdiction to seek an adjudication of the rights of WPCS
      and the Owner.

     

    10. The
      Escrow Agent may act in reliance upon any notice, instruction, certificate,
      statement, request, consent, confirmation, agreement or other instrument which
      it believes
      to be genuine and to have been signed by a proper person or persons, and may
      assume that any of the officers of WPCS or the Owner purporting to act on behalf
      of WPCS or the Owner in giving any such notice or other instrument in connection
      with the provisions hereof has been duly authorized to do so.

    
      
        
        

      

      
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    11.1 In
      the
      event that the Escrow Agent retains counsel or otherwise incurs any legal fees
      by virtue of any provision of this Escrow Agreement, the reasonable fees and
      disbursements of such counsel and any other liability, loss or expense which
      the
      Escrow Agent may thereafter suffer or incur in connection with this Escrow
      Agreement or the performance or attempted performance in good faith of its
      duties hereunder shall be paid (or reimbursed to it) by WPCS. In the event
      that
      the Escrow Agent shall become a party to any litigation in connection with
      its
      functions as Escrow Agent pursuant to this Escrow Agreement, whether such
      litigation shall be brought by or against it, the reasonable fees and
      disbursements of counsel to the Escrow Agent including the amounts attributable
      to services rendered by members or associates of Escrow Agent at the then
      prevailing hourly rate charged by them and disbursements incurred by them,
      together with any other liability, loss or expense which it may suffer or incur
      in connection therewith, shall be paid (or reimbursed to it) by WPCS, unless
      such loss, liability or expense is due to the willful breach or gross negligence
      by the Escrow Agent of its duties hereunder.

     

    11.2
      WPCS
      hereby unconditionally agrees to indemnify the Escrow Agent and hold it harmless
      from and against any and all taxes (including federal, state and local taxes
      of
      any kind and other governmental charges), expenses, damages, actions, suits
      or
      other charges incurred by or brought or assessed against it for (i) anything
      done or omitted by it in the performance of its duties hereunder, or (ii) on
      account of acting in its capacity as an Escrow Agent or stakeholder hereunder,
      except as a result of its willful breach or gross negligence of its duties
      under
      this Escrow Agreement.

    
      
        
        

      

      
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    11.3 
      All
      reasonable expenses incurred by the Escrow Agent in connection with the
      performance of its duties hereunder shall be paid (or reimbursed to it) by
      WPCS
      and the Owner, jointly and severally.

     

    11.4
      The
      agreements contained in this Section 11 shall survive any termination of the
      duties of the Escrow Agent hereunder.

     

    12. The
      terms
      and provisions of this Escrow Agreement may not be waived, discharged or
      terminated orally, but only by an instrument in writing signed by the person
      or
      persons against whom enforcement of the discharge, waiver or termination is
      sought.

     

    13. The
      Escrow Agent shall not be bound by any modification of the provisions of this
      Escrow Agreement, unless such modification is in writing and signed by WPCS
      and
      the Owner, and, with respect to any modification in Escrow Agent's duties or
      its
      rights of indemnification hereunder, it shall have given their prior written
      consent thereto.

     

    14. WPCS
      and
      the Owner shall, from time to time, execute such documents and perform such
      acts
      as the Escrow Agent may reasonably request and as may be necessary to enable
      the
      Escrow Agent to perform its duties hereunder or effectuate the transactions
      contemplated by this Escrow Agreement.

     

    15. WPCS
      and
      the Owner hereby acknowledge that the acts of the Escrow Agent are purely
      ministerial and do not represent a conflict of interest for the Escrow Agent
      to
      act, or continue to act, as counsel for any party to this Agreement with respect
      to any litigation or other matters arising out of this Agreement or
      otherwise.

     

    16. The
      Escrow Agent may resign at any time upon twenty (20) days' written notice to
      WPCS and the Owner. In the event of the Escrow Agent's resignation, its only
      duty thereafter shall be to hold and dispose of the Escrowed Cash in accordance
      with the provisions of this Agreement until a successor Escrow Agent shall
      be
      appointed and written notice of the name and address of such successor Escrow
      Agent shall be given to the resigning Escrow Agent by the other parties hereto,
      whereupon the resigning Escrow Agent's only duty shall be to deliver the
      Escrowed Cash to the successor Escrow Agent.

    
      
        
        

      

      
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    17. The
      rights created by this Agreement shall inure to the benefit of, and the
      obligations created hereby shall be binding upon, the heirs, successors, assigns
      and personal representatives of the Escrow Agent, WPCS and the
      Owner.

     

    18.
      Each
      notice, demand, request, approval or communication ("Notice") which is or may
      be
      required to be given by any party to any other party in connection with this
      Agreement and the transactions contemplated hereby, shall be in writing, and
      given by personal delivery, certified mail, return receipt requested, prepaid,
      or by overnight express mail delivery and properly addressed to the party to
      be
      served at such address as set forth above. 

     

    Notices
      shall be effective on the date delivered personally, the next day if delivered
      by overnight express mail or three days after the date mailed by certified
      mail.

     

    19. This
      Escrow Agreement shall be governed by, and its provisions construed in
      accordance with the laws of the State of New York.

    

    

    [Intentionally
      blank]

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Escrow Agreement to be duly executed as of
      the
      day and year first above written.

     

     

    
      	 	 	 
	 	
              WPCS
                INTERNATIONAL INCORPORATED

            
	 
 	 
 	 
 
	
            	By:  	/s/ ANDREW
              HIDALGO
	 	
              
                

              

              Andrew
                Hidalgo

              Chief
                Executive Officer

            
	 	 

      	 	 	 
	 	
              SELLER:

               

              AMERICAN
                GAS SERVICES, INC.

            
	 
 	 
 	 
 
	 	By:  	/s/ HAROLD
              MUELLER
	 	
              
                

              

              Name:
                Harold Mueller

              Title:
                President

            
	 	 

    
      	 	 	 
	 	
              AMERICAN
                GAS SERVICES, INC. CONSULTANTS:

            
	 
 	 
 	 
 
	 	By:  	/s/ HAROLD
              MUELLER
	 	
              
                

              

              Name:
                Harold Mueller

              Title:
                President

            
	 	 

      	
               
                
                ESCROW
                  AGENT:

                SICHENZIA
                  ROSS FRIEDMAN FERENCE LLP

              

               

               

               

            	 	 	 
	/s/ THOMAS
              A. ROSE	 	 	 
	
              

              Thomas
                A. Rose,

              PartnerCERTIFICATE OF DESIGNATION OF

CERTIFICATE OF DESIGNATION OF

SERIES A VOTING CONVERTIBLE PREFERRED STOCK

SETTING FORTH THE PREFERENCES,

RIGHTS, QUALIFICATIONS AND LIMITATIONS OF SUCH SERIES OF PREFERRED STOCK

Pursuant to Delaware law, Millennium Quest, Inc., a Delaware corporation (the "Company"), does hereby certify that:

Pursuant to the authority conferred upon the Board of Directors of the Company by the Certificate of Incorporation of the Company, the Board of Directors of the Company on April 5, 2007 adopted the following resolution creating a series of preferred stock designated as Series A Voting Convertible Preferred Stock, and such resolution has not been modified and is in full force and effect on the date hereof:

RESOLVED that, pursuant to the authority vested in the Board of Directors of the Company in accordance with the provisions of the Certificate of Incorporation, a series of the class of authorized preferred stock, par value $.001 per share, of the Company is hereby created and that the designation and number of shares thereof and the voting powers, preferences and relative, participating, optional and other special rights of the shares of such series, and the qualifications, limitations and restrictions thereof are as follows:

Section 1.

Designation, Number and Rank.

(a)

The shares of the series shall be designated as "Series A Voting Convertible Preferred Stock" (the "Series A Preferred Stock").  The number of shares initially constituting the Series A Preferred Stock shall be One Hundred Thousand (100,000).

(b)

The Series A Preferred Stock shall, with respect to rights on liquidation, dissolution and winding up, rank equal to all outstanding shares of Common Stock and shall be treated as though it has been converted to outstanding shares of Common Stock pursuant to the conversion terms set forth herein.

Section 2.     Dividends and Distributions.

 Except as provided below, the Series A Preferred Stock shall not be entitled to any preferential dividends but shall be treated as though it had been converted to common stock and shall share equally in any dividend granted to shareholders of common stock unless the holders of such Series A Preferred Stock waive such rights in writing.  Notwithstanding the foregoing, however, the Series A Preferred Stock shall not be entitled to share or participate in the special cash distribution proposed to be paid by the Company to the holders of its common stock as of a record date between March 20, 2007 and April 25, 2007 in the amount determined by the Board of Directors pursuant to a resolution dated April 5, 2007, but not to exceed $0.19 per share.

Section 3.

Voting Rights.

Except as otherwise provided herein or by law and in addition to any right to vote as a separate class as provided by law, the holders of the Preferred Stock shall have full voting rights and powers equal to the voting rights and powers of holders of Common Stock and shall be entitled to notice of any stockholders meeting in accordance with the Bylaws of the Corporation, and shall be entitled to vote, with respect to any question upon which holders of Common Stock have the right to vote, including, without limitation, the right to vote for the election of directors, voting together with the holders of Common Stock as one class. Each holder of shares of Preferred Stock shall be entitled to the number of votes equal to the number of shares of Common Stock into which such shares of Preferred Stock would be converted if converted on the record date for the taking of a vote (regardless of the number of shares of Common Stock that the Corporation is then authorized to issue) or, if no record date is established, at the day prior to the date such vote is taken or any written consent of stockholders is first executed. Fractional votes shall not, however, be permitted and any fractional voting rights resulting from the above formula (after aggregating all shares into which shares of Preferred Stock held by each holder would be converted) shall be rounded to the nearest whole number (with one-half being rounded upward). 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.

Section 4.

Conversion.

 The shares of Series A Preferred Stock shall, from and after the Conversion Date, be convertible at the option of the holder into shares of the Common Stock of the Company, $.001 par value, (the "Common Stock") at any time and from time to time on the basis of Four Hundred Twenty-Eight and 56/100 shares of Common Stock for each share of Series A Preferred Stock converted.  For purposes hereof, the Conversion Date shall be the earlier to occur of the following: (i) September 30, 2007; (ii) the date the Company consummates a business combination transaction with a corporation or other business entity with current business operations; or (iii) the date such conversion is approved by the Board of Directors of the Company. The number of shares of Common Stock issuable upon conversion of the Series A Preferred Stock will be subject to adjustment in certain circumstances upon any recapitalization, including but not limited to stock splits, readjustments or reclassifications, to protect against dilution, as set forth in more detail in this Section 4 hereof.

In addition to the rights of the holders of the Series A Preferred Stock to convert said stock to shares of Common Stock in accordance with the provisions set forth herein, the Company has the right at any time from and after the Conversion Date to cause any or all of said shares to be converted to shares of the Company’s Common Stock in accordance with all of the terms outlined herein upon five (5) days written notice. The outstanding shares of Series A Preferred Stock which 

are the subject of such notice by the Company shall be deemed to represent shares of Common Stock on the sixth day after notice of the conversion by the Company regardless of whether said  shares are surrendered for conversion by the holders thereof.

(a)

Adjustments.  The number of shares of Common Stock into which each share of Series A Preferred Stock is convertible, and the number of votes to which the holder of a share of Series A Preferred Stock is entitled pursuant to Section 4, shall be subject to adjustment from time to time as follows:

(i)

Dividend and Distributions. In case the Company shall at any time or from time to time declare a non-cash dividend, or make a distribution, on the outstanding shares of Common Stock in shares of Common Stock or subdivide or reclassify the outstanding shares of Common Stock into a larger number of shares or combine or reclassify the outstanding shares of Common Stock into a smaller number of shares of Common Stock, then, and in each such case:

                    (A)

the number of shares of Common Stock into which each share of Series A Preferred Stock is convertible shall be adjusted so that the holder of each share thereof shall be entitled to receive, upon the conversion thereof, the number of shares of Common Stock which the holder of a share of Series A Preferred Stock would have been entitled to receive after the happening of any of the events described above had such share been converted immediately prior to the happening of such event or the record date therefor, whichever is earlier;

                     (B)

the number of votes to which a holder of a share of Series A Preferred Stock is entitled pursuant to Section 3 shall be adjusted so that, after the happening of any of the events described above, such holder shall be entitled to a number of votes equal to (I) the number of votes to which such holder was entitled pursuant to Section 3 immediately prior to such happening multiplied by (II) a fraction, the numerator of which is the number of shares of Common Stock into which one share of Series A Preferred Stock was convertible immediately after such happening and the denominator of which is the number of shares of Common Stock into which one share of Series A Preferred Stock was convertible immediately prior to such happening; and

                     

(C)

an adjustment made pursuant to this clause (i) shall become effective (I) in the case of any such dividend or distribution, (1) immediately after the close of business on the record date for the determination of holders of shares of Common Stock entitled to receive such dividend or distribution, for purposes of subclause (A), and (2) immediately after the close of business on the date of payment of such dividend or distribution, for purposes of subclause (B), or (II) in the case of any such subdivision, reclassification or combination, at 

the close of business on the day upon which such corporate action becomes effective, for purposes of both subclause (A) and subclause (B).

(ii)

Merger; Consolidation. In case at any time the Company shall be a party to any transaction (including, without limitation, a merger, consolidation, sale of all or substantially all of the Company's assets, liquidation or recapitalization of the Common Stock and excluding any transaction to which clause (i) or (ii) of this paragraph (a) applies) in which the previously outstanding Common Stock shall be changed into or, pursuant to the operation of law or the terms of the transaction to which the Company is a party, exchanged for different securities of the Company or common stock or other securities of another corporation or interests in a noncorporate entity or other property (including cash) or any combination of any of the foregoing, then, as a condition of the consummation of such transaction, lawful and adequate provision shall be made so that each holder of shares of Series A Preferred Stock shall be entitled, upon conversion, to an amount per share equal to (A) 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 times (B) the number of shares of Common Stock into which a share of Series A Preferred Stock is convertible immediately prior to the consummation of such transaction.

(b)

Method of Conversion.

             (i)    The holder of any shares of Series A Preferred Stock may exercise its right to convert such shares into shares of Common Stock by surrendering for such purpose to the Company, at its principal office or at the principal office of the transfer agent or at such other office or agency maintained by the Company for that purpose, a certificate or certificates representing the shares of Series A Preferred Stock to be converted accompanied by a written notice stating that such holder elects to convert all or a specified whole number of such shares in accordance with the provisions of this Section 4 and specifying the name or names in which such holder wishes the certificate or certificates for shares of Common Stock to be issued. In case such notice shall specify a name or names other than that of such holder, such notice shall be accompanied by payment of all transfer taxes payable upon the issuance of shares of Common Stock in such name or names.

        

(ii)

Promptly after such notification, such notifying holder of Series A Preferred Stock shall surrender for purposes of conversion to the Company, at its principal office or at such other office or agency maintained by the Company for that purpose, the certificate or certificates representing all shares of Series A Preferred Stock held by such holder. 

         

(iii)

Such conversion shall be deemed to have been made at the close of business on the date of giving of such notice and of such surrender of the certificate or certificates representing the shares of Series A Preferred Stock to be converted so 

that the rights of the holder thereof as to the shares being converted shall cease, except for the right to receive shares of Common Stock and any dividends payable with respect thereto in accordance herewith, and the person entitled to receive the shares of Common Stock shall be treated for all purposes as having become the record holder of such shares of Common Stock at such time.

(c)

Issuance of Common Stock.

Other than taxes payable by the holder of any Series A Preferred Stock in accordance with paragraph (b) of this Section 4, the Company will pay any and all issuance, documentary or stamp taxes and other taxes (other than taxes based on income) that may be payable in respect of any issuance or delivery of shares of Common Stock on conversion of Series A Preferred Stock pursuant hereto. As promptly as practicable, and in any event within five (5) Business Days after the surrender of the certificate or certificates representing such shares of Series A Preferred Stock being converted and, in the case of a conversion by the holder pursuant to paragraph (b), the receipt by the Company of such notice relating thereto and, if applicable, payment of all transfer taxes (or the demonstration to the satisfaction of the Company that such taxes have been paid), the Company shall deliver or cause to be delivered (i) certificates representing the number of validly issued, fully paid and nonassessable full shares of Common Stock to which the holder of shares of Series A Preferred Stock so converted shall be entitled and (ii) in the case of a conversion at the election of the holder of Series A Preferred Stock, if less than the full number of shares of Series A Preferred Stock evidenced by the surrendered certificate or certificates are being converted, a new certificate or certificates, of like tenor, for the number of shares of Series A Preferred Stock evidenced by such surrendered certificate or certificates less the number of shares converted.

(d)

Reservation of Shares. Commencing on the Conversion Date, the Company shall reserve and keep available out of its authorized and unissued Common Stock, solely for the purpose of effecting the conversion of the Series A Preferred Stock, such number of shares of Common Stock as shall from time to time be sufficient to effect the conversion of all then outstanding shares of Series A Preferred Stock.  If, on the Conversion Date, the number of authorized shares of Common Stock remaining unissued shall not be sufficient to permit the conversion at such time of all then outstanding shares of Series A Preferred Stock, the Company shall use commercially reasonable efforts to increase the number of authorized shares of the Company’s Common Stock as necessary to permit the conversion of all then outstanding shares of Series A Preferred Stock and shall diligently pursue the completion of such process. 

(e)

Waiver of Adjustment. Notwithstanding anything to the contrary set forth herein, the operation of, and any adjustment in the number of shares of Common Stock issuable upon conversion of the Series A Preferred Stock pursuant to, this Section 4, may be waived with respect to any specific share or shares of Series A Preferred Stock, either prospectively or retroactively and either generally or in a particular instance, by a writing executed by the registered holder of such share or shares of Series A Preferred Stock. Any such waiver shall bind all future holders of such share or shares of Series A Preferred Stock for which such rights have been waived.

Section 5.     Reports as to Adjustments.

Whenever the number of shares of Common Stock into which each share of Series A Preferred Stock is convertible (or the number of votes to which each share of Series A Preferred Stock is entitled) is adjusted as provided in Section 4, the Company shall promptly mail by either first class mail (or bulk mail if the number of holders exceeds 500) to the holders of record of the outstanding shares of Series A Preferred Stock at their respective addresses as the same shall appear in the Company's stock records a notice stating that the number of shares of Common Stock into which the shares of Series A Preferred Stock are convertible has been adjusted and setting forth the new number of shares of Common Stock (or describing the new stock, securities, cash or other property) into which each share of Series A Preferred Stock is convertible (and the new number of votes to which each share of Series A Preferred Stock is entitled), as a result of such adjustment, a brief statement of the facts requiring such adjustment and the computation thereof, and when such adjustment became effective.

Section 6.

Redemption.

             There are no redemption rights associated with the Series A Preferred Stock.

             Section 7.        Restrictive Covenants.

             Unless approved in writing by a majority-in-interest of the holders of the Series A Preferred Stock, the Company shall not authorize, adopt or approve an amendment to the Certificate of Incorporation that would increase or decrease the par value of the shares of Series A Preferred Stock, or alter or change the powers, preferences or special rights of the shares of Series A Preferred Stock, 

Section 8.

Liquidation. Dissolution or Winding Up.

(a)

If the Company shall commence a voluntary case under the United States Bankruptcy Code or any applicable bankruptcy, insolvency or similar law of any other country, or consent to the entry of an order for relief in an involuntary case under any such law or to the appointment of a receiver, liquidator, assignee, custodian, trustee (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 become due, or if a decree or order for relief in respect of the Company shall be entered by a court having jurisdiction in an involuntary case under the United States Bankruptcy Code or any applicable bankruptcy, insolvency or similar law of any other country, or appointing a receiver, liquidator, assignee, custodian, trustee (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 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 the Series A Preferred Stock shall be treated on an equal basis with the outstanding Common Stock.

(b)

Neither the consolidation or merger of the Company with or into any other Person nor the sale or other distribution to another Person of all or substantially all the assets, property or business of the Company shall be deemed to be a liquidation, dissolution or winding up of the Company for purposes of this Section.

Section 9.

Certain Remedies.

 To the extent permitted by applicable law, the holders of twenty (20%) percent or more of the outstanding shares of Series A Preferred Stock shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Certificate of Designation and to enforce specifically the terms and provisions of this Certificate of Designation in the United States District Court for either the State of Delaware or State of Texas, this being in addition to any other remedy to which such holder may be entitled at law or equity.

Section 10.

Reacquired Shares.

                         Any shares of Series A Preferred Stock exchanged, redeemed, purchased or otherwise acquired by the Company or any of its Subsidiaries in any manner whatsoever shall be retired and canceled promptly after the acquisition thereof. 

Section 11.     Section References.

All references herein to sections or subsections shall be to sections or subsections of this Certificate of Designation unless otherwise expressly provided.

IN WITNESS WHEREOF, Millennium Quest, Inc., through its designated officer has caused this Certificate to be duly executed in its corporate name as of April 5, 2007.

                                         

Millennium Quest, Inc.

A Delaware corporation

                                                              

       By /s/ Dimitri Cocorinis

Dimitri Cocorinis, President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}]]