Document:

CERTIFICATE OF DESIGNATION
                                ESTABLISHING THE
                      SERIES A CONVERTIBLE PREFERRED STOCK
                                       OF
                                  VISEON, INC.

         VISEON, INC., a corporation organized and existing under the Nevada
Revised Statutes (the "Company"),

         DOES HEREBY CERTIFY:

         That, pursuant to the authority conferred upon the Board of Directors
of the Company (the "Board") by the Articles of Incorporation of the Company,
and pursuant to the provisions of Chapter 78-315, 78-915, and 78-1955 of the
Nevada Revised Statutes, the Board, by unanimous written consent on March 11,
2004, adopted the following resolution providing for the rights, designation,
number, powers, preferences, limitations, restrictions, relative rights, and
other matters relating to a series of preferred stock of the Company (the
"Preferred Stock"):

         RESOLVED, that the Company amend Article Five of its Articles of
Incorporation to create and issue a series of Preferred Stock to be designated
the "Series A Convertible Preferred Stock" by adding the following subsections
to Article Five, and that the Board does hereby fix and determine the rights,
designation, number, powers preferences, limitations, restrictions, and relative
rights and other matters relating to such shares of Series A Convertible
Preferred Stock as follows:

1. Designation and Number.

         A series of the preferred stock, designated the "Series A Convertible
Preferred Stock," $0.01 par value, (the "Series A Preferred Stock"), is hereby
established. The number of shares of the Series A Preferred Stock shall be three
hundred forty (340). For the purposes of these Articles of Incorporation, the
original issue price of the Series A Preferred Stock shall be deemed to be
Twenty-Five Thousand dollars ($25,000) per share (the "Original Issue Price").
The rights, preferences, privileges, and restrictions granted to and imposed on
the Series A Preferred Stock are as set forth in this Article Five.

2. Ranking.

         The Series A Preferred Stock shall rank, with respect to dividend
distributions and distributions upon the liquidation, winding-up and dissolution
of the Company, (i) senior to the Common Stock, par value $.01 per share, of the
Company (the "Common Stock") and to each other class or series of stock of the
Company (including any series of preferred stock established after March 13,
2004 by the Board of Directors) the terms of which do not expressly provide that
it ranks senior to or on a parity with the Series A Preferred Stock as to
dividend distributions and distributions upon the liquidation, winding-up and
dissolution of the Company (collectively referred to as "Junior Securities");
(ii) on a parity with any equity security, the terms of which expressly provide
that such class or series will rank on a parity with the Series A Preferred
Stock as to dividend distributions and distributions upon the liquidation,
winding-up and dissolution of the Company (collectively referred to as "Parity
Securities"); and (iii) junior to any equity security, the terms of which
expressly provide that such class or series will rank senior to the Series A
Preferred Stock as to dividend distributions and distributions upon liquidation,
winding-up and dissolution of the Company (collectively referred to as "Senior
Equity Securities"). Nothing in this Section 2 shall be deemed to limit the
approval rights in Section 6(B).

3.       Dividends.

(A)      The  holders of shares of the Series A  Preferred  Stock  shall be
         entitled  to receive  cash  dividends, accruing  from the date of
         issuance  (the  "Series A  Preferred  Stock  Issue  Date") or the most
         recent Dividend  Payment Date on which  dividends have been paid at the
         rate per annum of 10% of the  Liquidation Preference  per share
         (equivalent  to two thousand five hundred  dollars  ($2,500) per annum
         per share of Series A Preferred  Stock, as adjusted for splits, reverse
         splits,  stock dividends,  share  combinations and the  like),  payable
         quarterly  in arrears  on each May 1,  August 1,  November  1, and
         February 1, commencing on May 1, 2004 (each a "Dividend  Payment
         Date").  If any such date is not a Business Day, such payment  shall be
         made on the next  succeeding  Business Day, to the holders of record as
         of the preceding February 1, May 1, August 1 and  November 1 (each,  a
         "Record  Date").  Dividends  payable on the Series A Preferred  Stock
         will be computed on the basis of a 360-day year  consisting  of twelve
         30-day months and will be deemed to accrue on a daily basis.

(B)      Dividends  payable on the Series A Preferred Stock shall be paid in
         either (i) immediately  available cash funds or (ii) in  shares of
         Common  Stock of the  Company,  so long as such  shares  are duly
         authorized, fully  paid,  non-assessable  and are  the  subject  of an
         effective  registration  statement  under  the Securities  Act of 1933,
         as amended.  If the Company  elects to make the payment of any dividend
         in shares of Common  Stock,  such  payment shall be equal to the number
         of shares of Common Stock that the dividend payment would purchase  for
         a  purchase  price  equal  to  average  daily  Closing  Price  for the
         five consecutive  Trading Days immediately  preceding the Dividend
         Payment Date, and the Company shall pay such dividend,  including  all
         shares (and any cash  adjustment)  within  three  Business  Days of the
         Dividend Payment Date for which such payment in shares of Common Stock
         applies.  In lieu of any  fractional  share of Common Stock which would
         otherwise be issued in payment of a dividend on a Dividend  Payment
         Date, the Company  shall  pay a cash  adjustment  in  respect  of such
         fractional  interest  in an  amount  in cash (computed to the nearest
         cent) equal to the Closing Price  multiplied  by the  fractional
         interest to the nearest  1/100th of a percent that otherwise would have
         been issued in payment of such dividend.  On each Dividend Payment Date
         all  dividends  which shall have accrued on each share of Series A
         Preferred  Stock outstanding  on such Dividend  Payment Date shall
         accumulate and be deemed to become "due" whether or not there shall be
         funds  legally  available  for payment  thereof.  Any dividend paid in
         cash which shall not be paid on the  Dividend  Payment Date on which it
         shall  become due (whether  because of the absence of legally available
         funds for the  payment  thereof or  otherwise)  shall be deemed to be
         "past due" until such  dividend  shall be paid.  Any dividend paid in
         shares of Common Stock of the Company which shall not be paid on the
         Dividend  Payment Date on which it shall become due (without  regard to
         the reason for such failure)  shall be deemed to be "past due" on the
         third  Business Day following the Dividend  Payment Date and shall
         remain  "past due" until such  dividend  shall be paid.  Any  dividend
         intended  to be paid in shares  of  Common  Stock of the  Company which
         remains  past  due for a period  of  thirty  days  shall thereafter  be
         paid in cash.  No  interest,  sum of money in lieu of  interest,  other
         property  or other securities  shall be  payable  on or as a result of
         any  dividend  payment  or  payments  being  past due. Dividends  paid
         on shares  of Series A  Preferred  Stock in an amount  less than the
         total  amount of such dividends at the  time  accumulated  and  payable
         on  such  shares  shall  be  allocated  pro  rata on a share-by-share
         basis among all such  shares at the time  outstanding.  If the Company
         intends to pay any dividend in shares of Common  Stock,  to the extent
         any holder of record of Series A  Preferred  Stock has previously filed
         a Schedule  13(g),  the Company shall notify each such holder of such
         intention at least fifteen days prior to the applicable  Dividend
         Payment Date. As soon as practicable  following receipt of such notice,
         but in any event no later than five days prior to the applicable
         Dividend Payment Date, any such  holder to whom such  dividend  payment
         must be paid in cash  pursuant  to clause  (i) or (ii) below shall
         warrant to the Company the number of shares of Common Stock
         beneficially  owned by such holder and advise the Company of the
         applicability  of clause (i) or (ii) of the following  sentence to such
         holder.

         Notwithstanding  anything  herein to the contrary,  in no event shall a
         holder of Series A Preferred Stock have the right or be  required  to
         receive  dividends  payable in Common  Stock,  and such  holder  shall
         instead be entitled to receive payment of dividends  under this Section
         3(B) in cash,  (i) to the extent, and only to the extent,  that as a
         result of  dividend,  the  aggregate  number of shares of Common  Stock
         beneficially  owned by such holder,  its affiliates and any "group" (as
         defined in accordance with Section 13(d) of the Exchange Act and the
         rules  promulgated  thereunder) of which the holder may be deemed to be
         a party would exceed 9.99% of the  outstanding  shares of the Common
         Stock following such issuance or (ii) to the extent,  and only to the
         extent,  that prior to such  dividend,  the aggregate  number of shares
         of Common Stock  beneficially  owned by such holder, its affiliates and
         any "group" (as defined in accordance with Section 13(d) of the
         Exchange Act and the rules  promulgated thereunder) of which the holder
         may be deemed to be a party exceeds  9.99% of the  outstanding  shares
         of the Common Stock.  For purposes of this Section 3(B),  beneficial
         ownership  shall be calculated  in accordance  with Sections  13(d) and
         Section 16(a) of the  Exchange  Act.  The  provisions  of this Section
         3(B) may be waived by a holder as to itself (and solely as to itself)
         upon not less than  sixty-five  (65) days,  prior written notice to the
         Company, and the provisions of this Section 4(K) shall  continue to
         apply until such 65th day (or later, if stated in the notice of
         waiver).

(C)      If dividends  are not paid in full, or declared in full and sums set
         aside for the payment  thereof,  upon the Series A Preferred  Stock and
         any Parity  Securities,  subject to the prior  rights of holders of any
         Senior  Equity  Securities,  all dividends  declared upon shares of the
         Series A Preferred  Stock and such Parity  Securities will when, as and
         if declared,  be declared pro rata so that in all cases the amount of
         dividends  declared  and paid per share on the Series A Preferred Stock
         and such Parity  Securities  will bear to each  other  the same  ratio
         that  accumulated  dividends  per  share on the  shares  of Series A
         Preferred Stock and such Parity Securities  bear to each other.  Except
         as set forth above,  unless full cumulative  dividends on the Series A
         Preferred  Stock have been paid,  or declared and sums set aside for
         the payment thereof,  dividends  (other than in Common Stock or other
         Junior  Securities) may not be paid, or  declared  and sums set aside
         for payment  thereof,  and other  distributions  may not be made upon
         the Common  Stock or other  Junior  Securities,  subject to the
         additional  limitations  contained in Section 6(B);  and no shares of
         Common  Stock nor any other  Junior  Securities  may be  redeemed,
         purchased  or otherwise  acquired for any  consideration by the Company
         (except by conversion into or exchange for other Junior Securities).

(D)      Dividends on the Series A Preferred Stock shall accrue whether
         or not the Company has earnings or profits, whether or not
         there are funds legally available for the payment of such
         dividends and whether or not dividends are declared. Dividends
         will accumulate to the extent they are not paid on the
         Dividend Payment Date for the period to which they relate.

(E)      In the event that the Company pays a dividend, or makes a
         distribution, to the holders of its Common Stock (other than a
         dividend or distribution which results in an adjustment to the
         Conversion Price pursuant to Section 4(E), the holders of the
         Series A Preferred Stock shall, in addition to the
         distribution they are entitled to receive pursuant to the
         foregoing provisions of this Section 3, be entitled to
         participate in such dividend or distribution along with the
         holders of the Common Stock on an as converted basis.

(F)      Any reference to "distribution" contained in this Section 3
         shall not be deemed to include any distribution made in
         connection with any liquidation, winding-up or dissolution of
         the Company, as to which Section 5 shall apply.

4.       Conversion. To the extent not previously paid, all accumulated
         and past due dividends or distributions on shares of Series A
         Preferred Stock, whether or not declared by the Company, if
         any, shall be paid in cash concurrently with any Conversion
         under this Section 4.

(A)      Optional Conversion

(i)      Subject to and upon compliance with the provisions of this
         Section 4, each share of Series A Preferred Stock shall, at
         the option of the holder thereof, be convertible at any time
         into that number of fully paid and non-assessable shares of
         Common Stock (calculated as to each conversion to the nearest
         1/100th of a share) as is determined by dividing (x) the sum
         of the Original Issue Price, plus, to the extent not paid in
         cash on the Business Day following the receipt of the notice
         of conversion, all accrued and unpaid dividends on such
         shares, by (y) the Conversion Price (as defined in Section
         4(E)) in effect at the time of conversion).

(ii)     To convert Series A Preferred  Stock,  the holder of one or more shares
         of Series A Preferred  Stock to be converted  shall surrender the
         certificate or  certificates  representing  such shares at any of
         the offices or agencies to be  maintained  for such purpose by the
         Company and shall give written notice of  conversion  in the form
         provided on such shares of Series A Preferred  Stock (or such
         other  notice as is  acceptable  to the Company) to the Company at such
         office or agency that the holder elects to convert the shares of Series
         A Preferred  Stock  specified in said notice.  Such notice  shall also
         state the name or names,  together  with  address or  addresses,  in
         which the certificate  or  certificates  for  shares of  Common  Stock,
         which  shall be  issuable  in such conversion,  shall be issued.  Each
         certificate  representing a share of Series A Preferred Stock
         surrendered  for conversion  shall,  unless the shares issuable on
         conversion are to be issued in the same name as the name in which such
         share is registered,  be  accompanied by (A)  instruments of transfer,
         in form reasonably  satisfactory to the Company, duly executed by the
         holder or his duly  authorized  attorney,  (B) an amount  sufficient
         to pay any  transfer  or similar  tax, if applicable,  and (C) only if
         the  conversion  shares are to be registered in the name of a person
         or entity  other than the holder,  an opinion of counsel  satisfactory
         to the  Company  that the issuance of the shares issuable on conversion
         are exempt from the  registration  requirements of the  Securities Act.
         Within  three (3)  Business  Days  after  the  surrender  of
         certificates representing  such  shares  of  Series  A  Preferred Stock
         and  the  receipt  of  such  notice, instruments of transfer and funds,
         if any,  as  aforesaid,  the Company  shall issue and shall deliver at
         such  office or agency to such  holder,  or as  designated  in such
         holder's  written instructions,  a  certificate  or  certificates  for
         the  number of full  shares of Common  Stock issuable  upon the
         conversion of such share of Series A Preferred  Stock in accordance
         with the provisions  of this  Section 4 and a check or cash in respect
         of any  fractional  interest  in a share of Common Stock arising upon
         such conversion, as provided in Section 4(C).

         Each conversion shall be deemed to have been effected immediately prior
to the close of business on the date on which certificates representing such
shares of Series A Preferred Stock shall have been surrendered and such notice
(and any applicable instruments of transfer and any required taxes) received by
the Company as aforesaid, and the person or persons in whose name or names any
certificate or certificates for shares of Common Stock shall be issuable upon
such conversion shall be deemed to have become the holder or holders of record
of the shares represented thereby at such time on such date, and such conversion
shall be based upon the Conversion Price in effect at such time on such date,
unless the stock transfer books of the Company shall be closed on that date, in
which event such person or persons shall be deemed to have become such holder or
holders of record at the close of business on the next succeeding day on which
such stock transfer books are open, but such conversion shall be based upon the
Conversion Price in effect on the date upon which certificates representing such
shares of Series A Preferred Stock shall have been surrendered and such notice
received by the Company.

(B)      Mandatory Conversion

(i)      Each share of Series A Preferred  Stock  outstanding on the Mandatory
         Conversion Date (as defined herein) shall  automatically and without
         any action on the part of the holder thereof,  convert into that
         number of fully paid and  nonassessable  shares of Common Stock
         (calculated as to each conversion to the  nearest  1/100th of a share)
         as is  determined  by dividing (x) the sum of the Original Issue Price,
         plus,  to the extent not paid in cash on the Business Day following the
         receipt by the Company of certificates  representing  such shares of
         Series A Preferred  Stock,  all accrued and  unpaid  dividends  on such
         shares,  by (y) the  Conversion  Price in  effect at the time of
         conversion.  The term  "Mandatory  Conversion  Date" is the date,  if
         any, on which either of the following occurs:

(a)               The average Closing Price for the shares of Common Stock has
                  been $2.00 (subject to adjustment as set forth in this Section
                  4(B)(i)) or more and the average trading volume of the shares
                  of Common Stock has been 125,000 shares (as adjusted upwards
                  for stock splits, stock dividends and the like) or more during
                  the same twenty (20) consecutive Trading Days during the
                  period commencing on the first Trading Day after the
                  Securities and Exchange Commission declares effective the
                  registration statement (the "Registration Statement") filed by
                  the Company pursuant to Section 2 of the Registration Rights
                  Agreement and ending on the second anniversary of the Series A
                  Preferred Stock Issue Date (the "$2 Trigger Period"); or

(b)               The average Closing Price for the Shares of Common Stock has
                  been $3.00 (subject to adjustment as set forth in this Section
                  4(B)(i)) or more and the average trading volume of the shares
                  of Common Stock has been 125,000 shares (as adjusted upwards,
                  but not downwards, for stock splits, stock dividends and the
                  like) or more during the same consecutive twenty (20) Trading
                  Days occurring after the end of the $2 Trigger Period.

It shall be an absolute condition to any mandatory conversion that the
Registration Statement shall be effective, with no stop-order, and with no
suspensions of resales thereunder, during the entire twenty (20) Trading Day
period described in clauses (a) and/or (b), as applicable.

The $2.00 amount set forth in clause (a) above and the $3.00 amount set forth in
clause (b) (each, a "Trigger Amount") shall be subject to adjustment in the
event that the Company shall (i) pay a dividend or make a distribution on its
Common Stock, each in shares of Common Stock, (ii) subdivide its outstanding
shares of Common Stock into a greater number of shares, or (iii) combine its
outstanding shares of Common Stock into a smaller number of shares, by
multiplying the Trigger Amount by a fraction, the numerator of which is the
number of outstanding shares of Common Stock immediately prior to giving effect
to such dividend, distribution, subdivision, or combination and the denominator
of which is the number of shares of Common Stock outstanding immediately after
giving effect to such dividend, distribution, subdivision, or combination.

(ii)     On the Mandatory  Conversion  Date, the outstanding  shares of Series A
         Preferred Stock shall be converted automatically  without  any  further
         action by the holders of such shares and whether or not the
         certificates  representing  such shares are  surrendered to the Company
         or its  transfer  agent; provided,  however, that the Company shall not
         be obligated to issue certificates  evidencing the shares of Common
         Stock  issuable upon  conversion  of any  shares of Series A  Preferred
         Stock unless  certificates evidencing such shares of Series A Preferred
         Stock are either  delivered to the Company or the holder  notifies the
         Company that such  certificates  have been lost, stolen, or  destroyed,
         and executes an agreement  satisfactory  to the Company to indemnify
         the Company from any loss  incurred by it in  connection  therewith.
         Upon the  occurrence  of the  automatic conversion  of the Series A
         Preferred  Stock  pursuant to this Section  4(B),  the holders of the
         Series A Preferred Stock shall surrender the certificates  representing
         the Series A Preferred Stock for which the Mandatory  Conversion  Date
         has occurred to the Company and the Company shall deliver  the  shares
         of  Common  Stock  issuable  upon such  conversion  as soon as
         practicable following the Holder's  delivery of the applicable
         certificates for the Series A Preferred Stock within three (3) Business
         Days  following the date on which the Company  receives the  applicable
         certificates for the Series A Preferred Stock from the holder.

(C)      No fractional shares or scrip representing fractions of shares
         of Common Stock shall be issued upon conversion of Series A
         Preferred Stock. In lieu of any fractional interest in a share
         of Common Stock which would otherwise be deliverable upon the
         conversion of any share of Series A Preferred Stock, the
         Company shall pay to the holder of such shares an amount in
         cash (computed to the nearest cent) equal to the Closing Price
         on the Business Day next preceding the day of conversion
         multiplied by the fractional interest that otherwise would
         have been deliverable upon conversion of such share.

(D)      Holders of Series A Preferred Stock at the close of business
         on a Record Date will be entitled to receive an amount equal
         to the dividend payable on such shares on the corresponding
         Dividend Payment Date notwithstanding the conversion of such
         shares following such Record Date.

(E)      The "Conversion  Price" shall mean and be One Dollar  ($1.00),  subject
         to adjustment from time to time by the Company as follows:

(i)      In case the Company shall (a) pay a dividend or make a  distribution
         on its Common Stock,  each in shares of Common Stock, (b) subdivide its
         outstanding  shares of Common Stock into a greater number of shares,
         (c) combine its outstanding  shares of Common Stock into a smaller
         number of shares,  or (d) issue by  reclassification  of its Common
         Stock any shares of capital  stock of the Company, then in each such
         case the Conversion Price in effect  immediately  prior to such action
         shall be adjusted so that the holder of any share of Series A Preferred
         Stock  thereafter  surrendered for conversion  shall be entitled to
         receive  the number of shares of Common  Stock or other  capital
         stock of the Company which such holder would have owned or been
         entitled to receive  immediately following such action had such share
         been converted  immediately  prior to the occurrence of such event.
         An adjustment  made pursuant to this  subsection (i) shall become
         effective  immediately after the record date, in the case of a dividend
         or  distribution,  or  immediately  after the effective date, in the
         case of a subdivision,  combination or  reclassification.  If, as a
         result of an  adjustment  made  pursuant  to this  subsection  (i), the
         holder of any share of Series A Preferred Stock  thereafter surrendered
         for conversion  shall become entitled to receive shares of two or more
         classes of capital  stock or shares of Common  Stock and other  capital
         stock of the Company,  the Board of Directors (whose  determination
         shall be conclusive,  absent manifest error or absence of good faith,
         and shall be described in a statement  filed by the Company with
         the Transfer Agent) shall  determine,  in good faith,  the allocation
         of the adjusted  Conversion Price  between or among  shares of such
         classes of capital  stock or shares of Common  Stock and other capital
         stock.

(ii)              If the Company, at any time after the Series A Preferred Stock
                  Issue Date and while any share of Series A Preferred Stock is
                  outstanding:

(a)               issues or sells, or is deemed to have issued or sold, any
                  Common Stock, other than Excluded Shares;

(b)               in any manner grants, issues or sells any rights, options,
                  warrants, options to subscribe for or to purchase Common Stock
                  or any stock or other securities convertible into or
                  exchangeable for Common Stock other than Excluded Shares (such
                  rights, options or warrants being herein called "Options" and
                  such convertible or exchangeable stock or securities being
                  herein called "Convertible Securities"); or

(c)               in any manner issues or sells any Convertible Securities other
                  than Excluded Shares; for (1) with respect to paragraph
                  (ii)(a), a price per share, or (2) with respect to paragraphs
                  (ii)(b) or (ii)(c) above, a price per share (including the
                  consideration per share paid on issuance of the Option or
                  Convertible Securities) for which Common Stock issuable upon
                  the exercise of such Options or upon conversion or exchange of
                  such Convertible Securities is less than the Conversion Price
                  then in effect immediately prior to such issuance, sale or
                  grant, then, immediately after such issuance, sale or grant,
                  the Conversion Price shall be reduced to the amount determined
                  by dividing (1) the sum of (x) the product derived by
                  multiplying the Conversion Price in effect immediately prior
                  to such issue or sale by the number of shares of Common Stock
                  Deemed Outstanding immediately prior to such issue or sale,
                  plus (y) the consideration, if any, received or deemed to have
                  been received by the Company upon such issue or sale, by (2)
                  the number of shares of Common Stock Deemed Outstanding
                  immediately after such issue or sale. No modification of the
                  issuance terms shall be made upon the actual issuance of such
                  Common Stock upon exercise, conversion or exchange of such
                  Options or Convertible Securities. If there is a change at any
                  time in (i) the exercise price provided for in any Options,
                  (ii) the additional consideration, if any, payable upon the
                  issuance, conversion or exchange of any Convertible Securities
                  or (iii) the rate at which any Convertible Securities are
                  convertible into or exchangeable for Common Stock, then
                  immediately after such change the Conversion Price shall be
                  adjusted to the Conversion Price which would have been in
                  effect at such time had such Options or Convertible Securities
                  still outstanding provided for such changed exercise price,
                  additional consideration or changed conversion rate, as the
                  case may be, at the time initially granted, issued or sold;
                  provided that no adjustment shall be made if such adjustment
                  would result in an increase of the Conversion Price then in
                  effect. However, upon the expiration of any such Options or
                  Convertible Securities, the issuance of which resulted in an
                  adjustment in the Conversion Price pursuant to this Section
                  4(E)(ii), if all or any portion of any such Options or
                  Convertible Securities shall not have been exercised, the
                  Conversion Price shall immediately upon such expiration be
                  increased to the price which it would have been after the
                  issuance of such Options or Convertible Securities on the
                  basis of the Company offering for subscription, purchase,
                  conversion, exchange or acquisition only that number of shares
                  of Common Stock (if any) actually purchased upon the exercise
                  of such Options or Convertible Securities actually exercised.
                  For the purposes of this Section 4(E), the term "Common Stock
                  Deemed Outstanding" means, at any given time, the sum of the
                  number of shares of Common Stock actually outstanding at such
                  time plus the number of shares of Common Stock issuable upon
                  the exercise of all options, rights and warrants and the
                  conversion or exchange of convertible or exchangeable
                  securities outstanding at such time, whether or not such
                  options, rights, or warrants, or convertible or exchangeable
                  securities are actually exercisable, convertible or
                  exchangeable at such time. For the purposes of this Section
                  4(E), the consideration for the issue or sale of any
                  securities of the Company shall, irrespective of the
                  accounting treatment of such consideration, (x) insofar as it
                  consists of cash, be computed at the net amount of cash
                  received by the Company, without deducting any expenses paid
                  or incurred by the Company or any commissions or compensations
                  paid or concessions or discounts allowed to underwriters,
                  dealers or others performing similar services in connection
                  with such issue or sale, and (y) insofar as it consists of
                  property (including securities) other than cash, be computed
                  at the fair value thereof at the time of such issue or sale,
                  as determined in good faith by the Board of Directors of the
                  Company.

(iii)             In case the Company shall, by dividend or otherwise,
                  distribute to all holders of its outstanding  Common Stock any
                  capital stock (other than Common  Stock),  evidences of its
                  indebtedness  or assets or rights or warrants  to  subscribe
                  for or purchase  securities  of the Company  (excluding  those
                  referred to in  subsection  (ii) of this Section 4(E) and
                  dividends or  distributions  payable in stock  for  which
                  adjustment  is made  pursuant  to  subsection  (i) of this
                  Section  4(E)  and dividends  and  distributions  or rights or
                  warrants to subscribe  for or purchase  securities of the
                  Company  paid in cash out of the  retained  earnings of the
                  Company and  distributions  upon mergers or consolidations  to
                  which Section 4(i) applies),  then in each such case the
                  Conversion Price  shall be adjusted so that the same shall
                  equal the price  determined  by  multiplying  the Conversion
                  Price in effective  immediately  prior to the record date of
                  such  distribution  by a fraction of which the  numerator
                  shall be the average Closing Price of the Common Stock for the
                  twenty (20)  consecutive  Trading  Days  preceding  the record
                  date less the fair market value on such  record  date  (as
                  determined  by the  Board of  Directors,  whose  determination
                  shall be conclusive  and shall be described in a statement
                  filed by the Company with the Transfer  Agent) of the portion
                  of the  capital  stock or assets or the  evidences  of
                  indebtedness  or assets so distributed  to the  holder  of one
                  share of  Common  Stock or of such  subscription  rights  or
                  warrants  applicable to one share of Common  Stock,  and of
                  which the  denominator  shall be such average  Closing  Price
                  of the  Common  Stock  for the  twenty  (20)  consecutive
                  Trading  Days preceding the record date. Such adjustment shall
                  become effective  immediately  after the record date for the
                  determination of stockholders entitled to receive such
                  distribution.

(iv)              No adjustment in the Conversion  Price shall be required to be
                  made unless such  adjustment  would require an  increase or
                  decrease  of at least one  percent of such  price;  provided,
                  however,  that any adjustment  which by reason of this
                  subsection  (vi) is not required to be made shall be carried
                  forward  and taken  into  account  in any  subsequent
                  adjustment.  All  calculations  under this Section  4(E) shall
                  be made to the  nearest  cent or to the  nearest  1/100th of a
                  share,  as the case may be.  Anything in this Section 4(E) to
                  the contrary  notwithstanding,  the Company  shall be entitled
                  to make such  reduction in the Conversion  Price,  in addition
                  to those  required by this Section  4(E),  as it in its
                  discretion  shall  determine to be advisable in order that any
                  stock  dividend, subdivision of shares, distribution of rights
                  to purchase stock or securities, or distribution of securities
                  convertible  into or exchangeable  for stock hereafter made by
                  the Company to its stockholders shall not be taxable to the
                  recipients.

(v)               Whenever the Conversion Price is adjusted as herein  provided,
                  (A) the Company shall promptly file with the Transfer Agent a
                  certificate  setting forth the Conversion  Price after such
                  adjustment and a brief  statement of the facts  requiring such
                  adjustment  and the manner of computing the same, which
                  certificate  shall be conclusive  evidence of the correctness
                  of such adjustment,  and (B) the Company shall also mail or
                  cause to be mailed by first class mail,  postage prepaid,  as
                  soon as  practicable  to each holder of record of shares of
                  Series A Preferred  Stock a notice stating that the Conversion
                  Price has been  adjusted and setting forth the adjusted
                  Conversion  Price. The  Transfer  Agent  shall  not  be  under
                  any  duty  or  responsibility  with respect to the certificate
                  required by this  subsection  (v) except to exhibit the same
                  to any holder of shares of Series A Preferred  Stock who
                  requests to inspect it. The  Corporation  shall also, upon the
                  written  request of any holder of Series A Preferred  Stock,
                  furnish or cause to be furnished to such holder a similar
                  certificate  setting forth (i) such  adjustments and
                  readjustments,  (ii) the  Adjusted  Conversion  Price then in
                  effect,  and (iii) the number of shares of Common  Stock
                  and the amount,  if any, of other  property  which then would
                  be received upon the  conversion of Series A Preferred Stock.

(vi)              In the event that at any time, as a result of an adjustment
                  made pursuant to subsection (i) of this Section 4(E), the
                  holder of any share of Series A Preferred Stock thereafter
                  surrendered for conversion shall become entitled to receive
                  any shares of the Company other than shares of Common Stock,
                  thereafter the Conversion Price of such other shares so
                  receivable upon conversion of any share of Series A Preferred
                  Stock shall be subject to adjustment from time to time in a
                  manner and on terms as nearly equivalent as practicable to the
                  provisions with respect to Common Stock contained in this
                  Section.

(F)               In case:
(i)               the Company shall take any action which would require an
                  adjustment in the Conversion Price pursuant to Section 4(E);
                  or

(ii)              the Company shall authorize the granting to the holders of its
                  Common Stock generally of rights or warrants to subscribe for
                  or purchase any shares of stock of any class or of any other
                  rights; or

(iii)             there shall be any reorganization or reclassification of the
                  Common Stock or any merger or consolidation to which the
                  Company is a party or any sale or transfer of all or
                  substantially all of the property and assets of the Company;
                  or

(iv)              there shall be a voluntary or involuntary dissolution,
                  liquidation or winding-up of the Company;

         then in each such case the Company shall cause to be given to the
holders of shares of Series A Preferred Stock and the Transfer Agent as promptly
as possible, but in any event at least fifteen (15) days prior to the applicable
date hereinafter specified, a notice stating (i) the date on which a record is
to be taken for the purpose of such action or granting of 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 distribution, rights or warrants are to
be determined, or (ii) the date on which such reorganization, reclassification,
merger, consolidation, sale, transfer, dissolution, liquidation or winding-up is
expected to become effective or occur, 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, cash or other property deliverable upon
such reorganization, reclassification, merger, consolidation, sale, transfer,
dissolution, liquidation or winding-up.

(G)      The Company covenants that it will at all times reserve and keep
         available,  free from preemptive  rights, out of the  aggregate  of its
         authorized  but  unissued  shares of Common  Stock or its issued shares
         of Common Stock held in its treasury,  or both, for the purpose of
         effecting  conversions of shares of Series A Preferred  Stock, the full
         number of shares of Common  Stock  deliverable  upon the  conversion of
         all outstanding  shares of Series A  Preferred  Stock not  theretofore
         converted  and on or before  (and as a condition  of) taking any action
         that would cause an adjustment of the  Conversion  Price  resulting in
         an increase in the number of shares of Common Stock  deliverable  upon
         conversion  above the number  thereof previously reserved and available
         therefor,  the Company  shall take all such action so  required.  For
         purposes of this Section 4(G),  the number of shares of Common Stock
         which shall be  deliverable  upon the conversion of all  outstanding
         shares of Series A Preferred  Stock shall be computed as if at the time
         of computation all outstanding shares of Series A Preferred Stock were
         held by a single holder.

         Before taking any action which would cause an adjustment reducing the
Conversion Price below the then par value (if any) of the shares of Common Stock
deliverable upon conversion of the shares of Series A Preferred Stock, the
Company shall take any corporate action which may, in the opinion of its
counsel, be necessary in order that the Company may validly and legally issue
fully paid and non-assessable shares of Common Stock at such adjusted Conversion
Price.

(H)      The Company  shall pay any and all  documentary  stamp,  issue or
         transfer  taxes,  and any other  similar taxes  payable in respect of
         the issue or delivery of shares of Common Stock upon  conversion of
         shares of Series A Preferred Stock pursuant  hereto; provided, however,
         that the Company shall not be required to pay any tax which may be
         payable in respect of any  transfer  involved  in the issue or delivery
         of shares of Common  Stock in a name other than that of the holder of
         the shares of Series A  Preferred  Stock to be converted and no such
         issue or delivery  shall be made unless and until the person requesting
         such issue or delivery  has paid to the Company the amount of any such
         tax or has  established,  to the  satisfaction of the Company, that
         such tax has been paid.

(I)      Notwithstanding  any other provision  herein to the contrary,  in case
         of any merger or  consolidation  to which  the  Company  is a party
         (other  than a merger  or  consolidation  in which  the  Company,  is
         the continuing  entity  and in  which  the  Common  Stock  outstanding
         immediately  prior  to the  merger  or consolidation  is not exchanged
         for cash, or the  securities or other property of another  entity),  or
         in the case of any sale or transfer  of all or  substantially  all of
         the  Company's  property  and assets to another entity,  there will be
         no adjustment of the Conversion  Price,  and lawful provision shall be
         made by the entity formed by such  consolidation  or the entity whose
         securities,  cash or other property will immediately after the merger
         or consolidation be owned, by virtue of the merger or  consolidation,
         by the holders of Common Stock immediately  prior to the merger or
         consolidation,  or the entity which shall have acquired  such assets of
         the Company,  such that each share of Series A Preferred  Stock then
         outstanding will,  without  the  consent  of the  holder thereof become
         convertible  into the kind  and  amount  of securities,  cash or other
         property  receivable  upon such merger,  consolidation,  sale or
         transfer by a holder of the number of shares of Common  Stock into
         which  such  share of Series A  Preferred  Stock was convertible
         immediately  prior to such merger,  consolidation,  sale or transfer
         assuming such holder of Common  Stock did not exercise  his rights of
         election,  if any, as to the kind or amount of  securities, cash or
         other property  receivable  upon such merger,  consolidation,  sale or
         transfer.  In the case of a cash merger of the Company  into another
         entity or any other cash  transaction  of the type  mentioned in
         this  Section  4(i),  each  share of Series A  Preferred  Stock  will
         thereafter  be  convertible  at the Conversion  Price in effect at such
         time into the same  amount of cash per share  into which each share of
         Series A Preferred  Stock would have been  convertible  had such share
         been  converted  into Common  Stock immediately  prior to the effective
         date of such cash  merger or  transaction.  The  provisions  of this
         Section 4(i) shall similarly apply to successive mergers,
         consolidations, sales or transfers.

(J)      The Company covenants that all shares of Common Stock which may be
         delivered upon conversion of shares of Series A Preferred Stock will
         upon delivery be duly and validly issued and fully paid and
         non-assessable.

                  The Company covenants that if any shares of Common Stock to be
provided for the purpose of conversion of the Series A Preferred Stock hereunder
require registration with or approval of any governmental authority under any
Federal or State law before such shares may be validly issued upon such
conversion, the Company will in good faith and as expeditiously as possible
endeavor to secure such registration or approval, as the case may be.

                  The Company further covenants that so long as the Common Stock
shall be listed on the New York Stock Exchange or any other national securities
exchange or the Nasdaq National Market or Small Cap Market, the Company will, if
permitted by the rules of such exchange or market, list and keep listed so long
as the Common Stock shall be so listed on such exchange or market, all Common
Stock issuable upon conversion of the shares of Series A Preferred Stock.

(K)      Notwithstanding  anything  herein to the contrary,  in no event shall a
         holder of Series A Preferred Stock have the right or be  required  to
         convert  his,  her or its  shares of Series A  Preferred  Stock to the
         extent,  and only to the extent,  that as a result of such  conversion,
         the aggregate number of shares of Common Stock  beneficially  owned by
         such holder, its affiliates and any "group" (as defined in accordance
         with Section 13(d) of the Exchange Act and the rules  promulgated
         thereunder)  of which the holder may be deemed to be a party would
         exceed 9.99% of the  outstanding  shares of the Common  Stock following
         such conversion.  For purposes of this Section  4(K),  beneficial
         ownership  shall be calculated in accordance with  Sections  13(d) and
         Section  16(a) of the Exchange  Act. The  provisions of this Section
         4(K) may be waived by a holder as to itself (and solely as to itself)
         upon not less than sixty-five  (65) days,  prior written  notice to the
         Company,  and the  provisions  of this  Section 4(K) shall  continue to
         apply until such 65th day (or later, if stated in the notice of
         waiver).  Notwithstanding  the forgoing  provisions of this  Section
         4 (K) or any other  term or  condition  hereof,  to the  extent  that
         any shares of Series A Preferred  Stock are not  converted,  on the
         Mandatory  Conversion  Date,  due to the  application of this Section
         4 (K),  then such shares shall  automatically,  without any action by
         the Company or any holder of shares of Series A  Preferred  Stock and
         whether or not any such  holder of shares of Series A  Preferred
         Stock is required to convert  such  shares,  cease to be  entitled to
         the rights,  powers and  preferences under Sections 3(A), 4(E)(ii),
         4(F), (5), 6(B) and 6(C) and thereafter,  any holder of shares of
         Series A Preferred  Stock shall only be  entitled  to the  conversion
         thereof  into shares of Common  Stock of the Company, at the conversion
         rate in effect on the Mandatory  Conversion  Date,  upon the surrender
         of the certificates representing such shares to the Company or its
         transfer agent.

5.       Liquidation Rights.

         Upon any voluntary or involuntary liquidation, dissolution or
winding-up of the Company, each holder of shares of the Series A Preferred Stock
will be entitled to payment out of the assets of the Company available for
distribution of an amount equal to Twenty-Five Thousand dollars ($25,000), as
adjusted for splits, reverse splits, stock dividends, share combinations and the
like (the "Liquidation Preference"), per share of Series A Preferred Stock held
by such holder, plus (a) an amount equal to accrued and unpaid dividends, if
any, to the date fixed for liquidation, dissolution or winding-up and (b) an
additional amount equal to 8% per annum of the Liquidation Preference per share
for the period commencing on the Series A Preferred Stock Issue Date for such
share and ending on the Business Day immediately preceding the date fixed for
liquidation, dissolution or winding-up, in each case before any distribution is
made on any Junior Securities, including, without limitation, the Common Stock.
After payment in full of the Liquidation Preference and all other amounts to
which holders of Series A Preferred Stock are entitled pursuant to this Section
5, such holders will not be entitled to any further participation in any
distribution of assets of the Company. If, upon any voluntary or involuntary
liquidation, dissolution or winding-up of the Company, the amounts payable with
respect to the Series A Preferred Stock and all other Parity Securities are not
paid in full, the holders of the Series A Preferred Stock and the Parity
Securities will share equally and ratably in any distribution of assets of the
Company in proportion to the full liquidation preference and accumulated and
unpaid dividends, if any, to which each is entitled (including, in the case of
the Series A Preferred Stock, all amounts payable pursuant to the first sentence
of this Section 5. For the purposes of this Section 5, the following shall be
deemed to be a voluntary or involuntary liquidation, dissolution or winding-up
of the Company:

(i)               The voluntary sale, conveyance, exchange or transfer (for
                  cash, shares of stock, securities or other consideration) of
                  all or substantially all of the property or consolidated
                  assets of the Company and its subsidiaries in a single
                  transaction or series of related transactions;

(ii)              the  merger or  consolidation  of one or more  other  entities
                  into or with the  Company,  the  merger or consolidation  of
                  the  Company  into  or  with  one  or  more  other  entities,
                  other  business combination  involving the Company  (including
                  transactions  involving  subsidiaries  of  the Company),  a
                  sale of stock of the Company, or series or combination of such
                  transactions,  if the stockholders  holding the outstanding
                  shares of voting stock of the Company  immediately prior to
                  such transaction or transactions do not,  immediately  after
                  the consummation of such transaction or  transactions  hold a
                  majority  of the  outstanding  shares of voting  stock of the
                  surviving entity.

                  The holder of any shares of Series A Preferred Stock shall not
be entitled to receive any payment owed for such shares under this Section 5
until such holder shall cause to be delivered to the Company the certificate(s)
representing such shares of Series A Preferred Stock. No interest shall accrue
on any payment upon liquidation after the date thereof.

6.                Voting Rights.

(A)      Except as  otherwise  provided  herein or  required by law,  the Series
         A  Preferred  Stock shall be voted equally  with the  shares of the
         Common Stock and not as a  separate  class,  at any  annual or  special
         meeting of the  shareholders  of the  Company,  and may act by written
         consent in the same  manner as the Common Stock,  in each case upon the
         following  basis:  each holder of shares of Series A Preferred  Stock
         shall be entitled to such  number of votes as may be voted on the whole
         number of shares of Common  Stock into which such holder's  aggregate
         shares of Series A Preferred Stock are convertible  immediately  after
         the close of business  on the record date fixed for such  meeting or
         the  effective  date of such  written consent.  The  holders of the
         shares of Series A  Preferred  Stock  shall be  entitled  to 10 days'
         prior notice  (and if  practicable  and  economically  feasible,  20
         days  prior  notice)  of all  stockholders' meetings, and all proposed
         actions by written consent of the stockholders of the Corporation.

(B)               In addition to any other vote or consent required herein or by
                  law, so long as fifty-one percent (51%) of the number of
                  shares of Series A Preferred Stock issued in the Offering
                  described in the Purchase Agreement remain outstanding, as
                  adjusted for splits, reverse splits, stock dividends, share
                  combinations and the like, the vote or written consent of the
                  holders of at least fifty-one percent (51%) of the outstanding
                  shares of Series A Preferred Stock, voting together as a
                  single class, shall be necessary for effecting any of the
                  following actions:

(i)               authorizing, creating, or issuing (by reclassification,
                  merger, consolidation, reorganization or otherwise) any Parity
                  Securities or Senior Equity Securities;

(ii)              declaring or paying any dividend or distribution on any of the
                  Common Stock or any other Junior Securities;

(iii)             repurchasing, redeeming or otherwise acquiring, or
                  authorizing, designating or agreeing to any redemption terms
                  relating to, any shares of capital stock of the Company;

(iv)              approving or authorizing the merger, consolidation,
                  recapitalization, other corporate reorganization, change of
                  control of the Company, or any transaction in which all or
                  substantially all of the consolidated assets of the Company or
                  its subsidiaries are sold, transferred, or otherwise disposed
                  of, or in which a substantial portion of such assets are
                  licensed;

(v)               amending, altering, or repealing (including by merger,
                  consolidation, reorganization or otherwise) the Company's
                  Bylaws or Articles of Incorporation (whether by merger,
                  consolidation, recapitalization or otherwise) as to adversely
                  affect the preferences, rights or privileges of, or the
                  restrictions provided for the benefit of, the Series A Shares;

(vi)              altering or changing (including by merger, consolidation,
                  reorganization or otherwise) the rights, preferences or
                  privileges (whether by merger, consolidation, recapitalization
                  or otherwise) of, or the restrictions provided for the benefit
                  of, the Series A Preferred Stock;

(vii)             unless at a price  greater  than one hundred and  seventy-five
                  percent  (175%) of the  Conversion  Price, issuing,  reserving
                  or  authorizing  shares of Common  Stock or any right or
                  option to  purchase Common Stock or other  security
                  convertible  into, or exercisable or  exchangeable  for,
                  Common Stock in excess of ten percent (10%) of the Company's
                  outstanding  shares of Common Stock on the Series A Preferred
                  Stock Issue Date (other than the issuance of shares  issuable
                  upon conversion of Series A Preferred  Stock and/or  exercise
                  of Series A-1 and A-2 warrants issued in connection therewith
                  and shares underlying options issued to employees,  officers,
                  directors or consultants in accordance  with plans  approved
                  by the Board of Directors of the Company  outstanding  on the
                  Series A Preferred Stock Issue Date);

(viii)            completing any other financing involving its equity securities
                  on terms more favorable than those governing the sale of the
                  Series A Preferred Stock until one year after the date the
                  Securities and Exchange Commission declares effective the
                  registration statement required by Section 2 of the
                  Registration Rights Agreement;

(ix)              increasing or decreasing the authorized number of shares of
                  the Series A Preferred Stock; or

(x)               increasing or decreasing the authorized number of directors
                  constituting the Board of Directors of the Company.

Each of the foregoing covenants and approval rights is separate and independent.
Notwithstanding the forgoing provisions of this Section 6(B) or any other term
or condition hereof, any action by the Company to amend, alter, or repeal a
provision of the Company's Bylaws or Articles of Incorporation in furtherance of
effectuating an increase in the number of shares of the Company's authorized
Common Stock, shall require only such consents or votes as determined by
applicable law and shall not necessitate the vote or written consent of the
holders of the outstanding shares of Series A Preferred Stock voting together as
a class.

(C)      In the event that the Company has failed to make  dividend  payments
         when and as required by Section 3 of this  Article  Five on two
         Dividend  Payment  Dates  (which  need not be  consecutive)  the
         holders of a majority of the  outstanding  shares of the Series A
         Preferred  Stock may  designate in written  notice to the Company a
         person to serve as a member of the Board of  Directors  of the Company
         (or, at the option of such  holders,  a person  who shall  have the
         right to  receive  notice  of each  meeting  of the Board of Directors
         and to attend each such meeting as an  observer).  Upon receipt of such
         notice from the holders of a majority of the outstanding  shares of the
         Series A Preferred  Stock, the Company shall take all such action as
         may be required  to have such  person  elected to the Board of
         Directors  (or, if such  holders have  elected to  designate a person
         to have the right to receive  notice of each  meeting of the Board of
         Directors  and to attend  each such  meeting as an  observer,  to
         provide to such  person  such notice and opportunity to attend).

7.       Headings of Subdivisions.

         The headings of the various subdivisions hereof are for convenience of
reference only and shall not affect the interpretation of any of the provisions
hereof.

8. Severability of Provisions.

         If any of the voting powers, preferences and relative, participating,
optional and other special rights of the Series A Preferred Stock and
qualifications, limitations and restrictions thereof set forth herein is
invalid, unlawful or incapable of being enforced by reason of any rule of law or
public policy, all other voting powers, preferences and relative, participating,
optional and other special rights of Series A Preferred Stock and
qualifications, limitations and restrictions thereof set forth herein which can
be given effect without the invalid, unlawful or unenforceable voting powers,
preferences and relative, participating, optional and other special rights of
Series A Preferred Stock and qualifications, limitations and restrictions
thereof shall, nevertheless, remain in full force and effect, and no voting
powers, preferences and relative, participating, optional or other special
rights of Series A Preferred Stock and qualifications, limitations and
restrictions thereof herein set forth shall be deemed dependent upon any other
such voting powers, preferences and relative, participating, optional or other
special rights of Series A Preferred Stock and qualifications, limitations and
restrictions thereof unless so expressed herein.

9. Reissuance of Series A Preferred Stock.

         Shares of Series A Preferred Stock that have been issued and reacquired
in any manner, including shares purchased or exchanged or converted, shall (upon
compliance with any applicable provisions of the laws of Nevada) have the status
of authorized but unissued shares of preferred stock of the Company undesignated
as to series and may be designated or redesignated and issued or reissued, as
the case may be, as part of any series of preferred stock of the Company,
provided that any issuance of such shares must be in compliance with the terms
hereof and provided further that such shares may not be reissued as Series A
Preferred Stock.

10. Mutilated or Missing Series A Preferred Stock Certificates; Office.

         If any of the Series A Preferred Stock certificates shall be mutilated,
lost, stolen or destroyed, the Company shall issue, in exchange and in
substitution for and upon cancellation of the mutilated Series A Preferred Stock
certificate, or in lieu of and substitution for the Series A Preferred Stock
certificate lost, stolen or destroyed, a new Series A Preferred Stock
certificate of like tenor and representing an equivalent amount of shares of
Series A Preferred Stock, but only upon receipt of evidence of such loss, theft
or destruction of such Series A Preferred Stock certificate and indemnity, if
requested, satisfactory to the Company and the Transfer Agent. The Company will,
so long as any shares of Series A Preferred Stock are outstanding, maintain an
office or agency where such shares may be presented for registration and where
such shares may be presented for conversion. Any holder of Series A Preferred
Stock may inspect the register of holders and their addresses at such office or
agency.

11. Reports.

         The Company shall mail to all holders of Series A Preferred Stock those
reports, proxy statements and other materials that it mails to all of its
holders of Common Stock.

12. No Impairment.

         The Company will not, by amendment of its Articles of Incorporation, as
amended, or through any reorganization, recapitalization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities, or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed hereunder by the Company, but will at all
times in good faith assist in the carrying out of all the provisions of this
Certificate of Designations and in the taking of all such action as may be
necessary or appropriate in order to protect the conversion rights of the
holders of the Series A Preferred Stock against impairment.

13. Notices of Record Date.

         In addition to the requirements of Section 4(F), if the Company shall
propose at any time:

(A) to declare any dividend or distribution upon its Common Stock or other
equity securities, 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;

(B) to offer for subscription pro rata to the holders of any class or series of
its stock any additional shares of stock of any class or series or other rights;

(C) to effect any reclassification or recapitalization of its Common Stock or
other equity securities outstanding involving a change in the Common Stock or
other equity securities;

(D) to convert any of the Series A Preferred Stock pursuant to this Certificate
of Designations; or

(E) to merge or consolidate with or into any other person, or sell, lease, or
convey all or substantially all its property or business, or to liquidate,
dissolve, or wind up (as defined herein),

         then, in connection with each such event, the Company shall send to the
holders of the Series A Preferred Stock in addition to any notice required by
applicable law:

(i) 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 (iii) and (v) above; and

(ii) in the case of the matters referred to in (iii) and (v) above, at least
fifteen (15) 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 or the record date for the
determination of such holders if such record date is earlier).

         Each such written notice shall be delivered personally or given by
first class mail, postage prepaid, addressed to the holders of the Series A
Preferred Stock at the address for each such holder as shown on the books of the
Company.

14.      Certain Definitions.

         As used in this Certificate of Designation, the following terms shall
have the following meanings (with terms defined in the singular having
comparable meanings when used in the plural and vice versa), unless the context
otherwise requires:

         "Business Day" means any day except a Saturday, a Sunday, or any day on
which banking institutions in New York, New York are required or authorized by
law or other governmental action to be closed.

         "Closing Price" for any day shall be the last reported sale price
regular way of the Common Stock on the New York Stock Exchange or, if the Common
Stock is not listed on The New York Stock Exchange, the average of the closing
sale prices on such day of the Common Stock on all average of the closing sale
prices on such day of the Common Stock on all domestic exchanges on which the
shares of Common Stock may at the time be listed, or if there have been no sales
on any such exchange on such day, the average of the highest bid and lowest
asked prices of the Common Stock on all such exchanges or, if on such day such
shares of Common Stock shall not be so listed, the average of the comparative
bid and asked prices quoted for the Common Stock in the National Association of
Securities Dealers, Inc. Automated Quotation ("NASDAQ") System as of 4:00 P.M.,
New York City time on such day, or if such shares shall not be quoted in the
NASDAQ System, the average of the high and low bid and asked price of the Common
Stock on such day in the domestic over-the-counter market as reported by the
National Quotation Bureau, Incorporated, or any other successor organization. If
at any time such shares of Common Stock are not listed on any domestic exchange
or quoted in the NASDAQ System or the domestic over-the-counter market, the
Market Price shall be the fair market value thereof determined by the Board of
Directors of the Company in good faith.

         "Commission" means the Securities and Exchange Commission.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

         "Excluded Shares" means (i) shares of Common Stock issued or issuable
pursuant to the Company's Series A Convertible Preferred Stock, Series A-1
Warrants, or Series A-2 Warrants, specifically including all shares of Common
Stock which may be issued upon conversion or exercise thereof or which may be
issued as dividends thereon, (ii) shares of Common Stock issuable upon the
exercise of any options or warrants outstanding on the Series A Preferred Stock
Issue Date and listed in Schedule 3(b) of the Purchase Agreement, (iii) shares
of Common Stock issuable pursuant to or upon the conversion of any note,
debenture, debt instrument and all other written agreements to which the Company
is a party on the Series A Preferred Stock Issue Date and identified in Schedule
3(b) of the Purchase Agreement and (iv) shares of Common Stock (including
grants, options and warrants) issuable pursuant to or in accordance with any
plan for which the Company has filed a registration statement that has been
declared effective and identified in Schedule 3(b) of the Purchase Agreement,
including, without limitation, the 1994 Stock Plan and the Consultant
Compensation Plan, or any other stock plan, option plan or written agreements to
which the Company is a party on the Series A Preferred Stock Issue Date and
identified in Schedule 3(b) of the Purchase Agreement.

         "Person" means any individual, corporation, partnership, joint venture,
association, joint stock company, trust, unincorporated organization, government
or any agency or political subdivision thereof or any other entity.

         "Purchase Agreement" means the Purchase Agreement dated as of the
Series A Preferred Stock Issue Date by and between the Company and each initial
holder of the Series A Preferred Stock.

         "Registration Rights Agreement" means the Registration Rights Agreement
dated as of the Series A Preferred Stock Issue between the Company and the other
parties identified therein.

         "Trading Day" means a day on which the securities exchange,
association, or quotation system on which shares of Common Stock are listed for
trading shall be open for business or, if the shares of Common Stock shall not
be listed on such exchange, association, or quotation system for such day, a day
with respect to which trades in the United States domestic over the counter
market shall be reported.

         "Transfer Agent" shall be Wells Fargo Share Owner Services unless and
until a successor is selected by the Company.

         IN WITNESS WHEREOF, the Company has caused this Certificate to be duly
executed on its behalf by its undersigned President and attested to by its
Secretary this 12th day of March 2004.

                                  VISEON, INC.

                                  By:
                                  --------------------------------------------
                                  John Harris, President
ATTEST:
[CORPORATE SEAL]

________________, SecretarySERIES A-1 WARRANT NO. __

                                  VISEON, INC.
                          (FORMERLY RSI SYSTEMS, INC.)

                          Common Stock Purchase Warrant

                           Dated as of March____, 2004

THIS WARRANT AND ANY SECURITIES ACQUIRED UPON EXERCISE OF THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES
LAW OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND
APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION TO THE
REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS. THIS WARRANT AND SUCH
SECURITIES MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN
COMPLIANCE WITH THE CONDITIONS SPECIFIED IN THIS WARRANT AND IN THE REGISTRATION
RIGHTS AGREEMENT, DATED THE DATE HEREOF, BY AND BETWEEN RSI SYSTEMS, INC., AND
THE HOLDERS SPECIFIED THEREIN.

<PAGE>

                                       iii

<PAGE>

Warrant No. W-1 - Page 1
                                  VISEON, INC.
                          (FORMERLY RSI SYSTEMS, INC.)

                          Common Stock Purchase Warrant
                             Void On March __, 2009

Series A-1 Warrant                                         Las Vegas, Nevada

No. A-1-_________                                          March __, 2004

         VISEON, INC. (the "Company"), a Nevada corporation, for value received,
hereby certifies that _________________________ or registered assigns (the
"Holder"), is entitled to purchase from the Company _____________ (_____) shares
of Common Stock of the Company (the "Warrant Shares") duly authorized, validly
issued, fully paid and nonassessable shares of common stock, par value $0.01 per
share, of the Company (the "Common Stock") at the purchase price per share of
ONE DOLLAR AND EIGHT CENTS ($1.08) (the "Warrant Price"), at any time or from
time to time prior to 5:00 p.m. Central Standard time, on March __, 2009 (the
"Expiration Date"), all subject to the terms, conditions and adjustments set
forth below in this Warrant.

         This Warrant is the Warrant (the "Warrant", such term to include any
such warrants issued in substitution therefor) originally issued in connection
with the Purchase Agreement, dated as of the date hereof, by and among the
Company and the Holder (as amended or otherwise modified from time to time, the
"Purchase Agreement"). The Warrant originally so issued evidences the right to
purchase a number of shares of Common Stock equal to the Warrant Shares, subject
to adjustment as provided herein. Certain capitalized terms used in this Warrant
are defined in Section 10; references to an "Exhibit" are, unless otherwise
specified, to one of the Exhibits attached to this Warrant and references to a
"Section" are, unless otherwise specified, to one of the Sections of this
Warrant.

1. Exercise of Warrant.

         1.1 Manner of Exercise. This Warrant may be exercised by the Holder, in
whole or in part, during normal business hours on any Business Day, by surrender
of this Warrant to the Company at its principal office, accompanied by the Form
of Subscription in substantially the form attached as Exhibit A to this Warrant
(or a reasonable facsimile thereof) duly executed by the Holder and accompanied
by payment, in cash, by wire transfer, certified or official bank check payable
to the order of the Company, or in the manner provided in Section 1.5 or Section
1.6 (or by any combination of such methods), in the amount obtained by
multiplying (a) the number of shares of Common Stock (adjusted as provided in
Sections 2 through 4) designated in such Form of Subscription by (b) the Warrant
Price, and such Holder shall thereupon be entitled to receive such number of
duly authorized, validly issued, fully paid and nonassessable shares of Common
Stock (or Other Securities).

         1.2 When Exercise Effective. Each exercise of this Warrant shall be
deemed to have been effected immediately prior to the close of business on the
Business Day on which this Warrant shall have been surrendered to the Company as
provided in Section 1.1. At such time the Person or Persons in whose name or
names any certificate or certificates for shares of Common Stock (or Other
Securities) shall be issuable upon such exercise, as provided in Section 1.3,
shall be deemed to have become the Holder or holders of record thereof.

         1.3 Delivery of Stock Certificates, etc. As soon as practicable after
each exercise of this Warrant, in whole or in part, and in any event within
three Business Days thereafter, the Company at its expense (including the
payment by it of any applicable transfer taxes) will cause to be issued in the
name of and delivered to the Holder hereof or, subject to Section 9, as such
Holder (upon payment by such Holder of any applicable transfer taxes) may
direct,

                  (a) a certificate or certificates for the number of duly
         authorized, validly issued, fully paid and nonassessable shares,
         including, if the Company so elects, fractional shares, of Common Stock
         (or Other Securities) to which such Holder shall be entitled upon such
         exercise plus, at the discretion of the Company, in lieu of any
         fractional share to which such Holder would otherwise be entitled, cash
         in an amount equal to the same fraction of the Closing Price per share
         on the Business Day next preceding the date of such exercise, and

                  (b) in case such exercise is in part only, a new Warrant or
         Warrants of like tenor, calling in the aggregate on the face or faces
         thereof for the number of shares of Common Stock equal (without giving
         effect to any adjustment thereof) to the number of such shares called
         for on the face of this Warrant minus the number of such shares
         designated by the Holder upon such exercise as provided in Section 1.1.

In lieu of physical delivery of the shares being issued upon exercise, provided
that the Company's transfer agent is participating in the Depository Trust
Company ("DTC") Fast Automated Securities Transfer (FAST) program, upon request
of the Holder and in compliance with the provisions hereof, the Company shall
use its reasonable efforts to cause its transfer agent to electronically
transmit the shares being issued to the Holder by crediting the account of the
Holder's Prime Broker with DTC through its Deposit Withdrawal Agent Commission
system. The time period for delivery described herein shall apply to the
electronic transmittals described herein.

         1.4 Company to Reaffirm Obligations. The Company will, at the time of
each exercise of this Warrant, upon the request of the Holder, acknowledge in
writing its continuing obligation to afford to such Holder all rights
(including, without limitation, any rights to registration of the shares of
Common Stock or Other Securities issued upon such exercise) to which such Holder
shall continue to be entitled after such exercise in accordance with the terms
of this Warrant, provided that if the Holder shall fail to make any such
request, such failure shall not affect the continuing obligation of the Company
to afford such rights to such Holder.

         1.5 Tax Basis. The Company and the Holder shall mutually agree as to
the tax basis of this Warrant for purposes of the Internal Revenue Code of 1986,
as amended (the "Code"), and the treatment of this Warrant under the Code by
each of the Company and the Holder shall be consistent with such agreement.

2. Adjustment of Common Stock Issuable Upon Exercise.

         The Warrant Price and the Warrant Shares purchasable pursuant to each
Warrant shall be subject to adjustment from time to time as hereinafter set
forth in this Section 2:

         2.1 Dividends and Subdivisions. In case, prior to the expiration of
this Warrant by exercise or by its terms, the Company shall issue any shares of
its Common Stock as a stock dividend or subdivide the number of outstanding
shares of its Common Stock into a greater number of shares, then in either of
such cases, the then applicable Warrant Price per Warrant Share purchasable
pursuant to this Warrant in effect at the time of such action shall be
proportionately reduced and the number of Warrant Shares at that time
purchasable pursuant to this Warrant shall be proportionately increased; and
conversely, in the event the Company shall reduce the number of outstanding
shares of Common Stock by combining such shares into a smaller number of shares,
then, in such case, the then applicable Warrant Price per Warrant Share
purchasable pursuant to this Warrant in effect at the time of such action shall
be proportionately increased and the number of Warrant Shares at that time
purchasable pursuant to this Warrant shall be proportionately decreased. If the
Company shall, at any time during the life of this Warrant, declare a dividend
payable in cash on its Common Stock and shall at substantially the same time
offer to its stockholders a right to purchase new Common Stock from the proceeds
of such dividend or for an amount substantially equal to the dividend, all
Common Stock so issued shall, for the purpose of this Warrant, be deemed to have
been issued as a stock dividend. Any dividend paid or distributed upon the
Common Stock in stock of any other class of securities convertible into shares
of Common Stock shall be treated as a dividend paid in Common Stock to the
extent that shares of Common Stock are issuable upon conversion thereof.

         2.2 Recapitalizations, Mergers, Etc. In case, prior to the expiration
of this Warrant by exercise or by its terms, the Company shall be recapitalized
by reclassifying its outstanding Common Stock, (other than a change in par value
to no par value), or the corporation or a successor corporation shall
consolidate or merge with or convey all or substantially all of its or of any
successor corporation's property and assets to any other corporation or
corporations (any such other corporations being included within the meaning of
the term "successor corporation" hereinbefore used in the event of any
consolidation or merger of any such other corporation with, or the sale of all
or substantially all of the property of any such other corporation to, another
corporation or corporations), then, as a condition of such recapitalization,
consolidation, merger or conveyance, lawful and adequate provision shall be made
whereby the holder of this Warrant shall thereafter have the right to purchase,
upon the basis and on the terms and conditions specified in this Warrant, in
lieu of the Warrant Shares theretofore purchasable upon the exercise of this
Warrant, such shares of stock, securities or assets as may be issued or payable
with respect to, or in exchange for, the number of Warrant Shares theretofore
purchasable upon the exercise of this Warrant, had such recapitalization,
consolidation, merger, or conveyance not taken place; and in any such event, the
rights of the Warrant Holder to any adjustment in the number of Warrant Shares
purchasable upon the exercise of this Warrant, as herein provided, shall
continue and be preserved in respect of any stock which the Warrant Holder
becomes entitled to purchase.

         2.3 Sale of Property, Liquidation, Etc. In case the Company at any time
while this Warrant shall remain unexpired and unexercised shall sell all or
substantially all of its property or dissolve, liquidate, or wind up its
affairs, lawful provision shall be made as part of the terms of any such sale,
dissolution, liquidation or winding up, so that the holder of this Warrant may
thereafter receive upon exercise hereof in lieu of each Warrant Share that it
would have been entitled to receive, the same kind and amount of any securities
or assets as may be issuable, distributable or payable upon any such sale,
dissolution, liquidation or winding up with respect to each share of Common
Stock of the Company, provided, however, that in any case of any such voluntary
sale or of dissolution, liquidation or winding up, the right to exercise this
Warrant shall terminate on a date fixed by the Company; such date so fixed to be
not earlier than 5:00 p.m., Central Standard Time, on the forty-fifth day
following the date on which a notice of such termination of the right to
exercise this Warrant has been given, by any method set forth in Section 13, to
the registered holder of this Warrant at its address as it appears on the books
of the Company.

         2.4      Issuance of Additional Shares. If the Company, at any time
while this Warrant is outstanding:

                  (i) issues or sells, or is deemed to have issued or sold, any
                  Common Stock, other than Excluded Shares;

                 (ii) in any manner grants, issues or sells any rights, options,
                 warrants, options to subscribe for or to purchase Common Stock
                 or any stock or other securities convertible into or
                 exchangeable for Common Stock that, upon conversion or
                 exchange, would not constitute Excluded Shares (such rights,
                 options or warrants being herein called "Options" and such
                 convertible or exchangeable stock or securities being herein
                 called "Convertible Securities");
or

                 iii) in any manner issues or sells any Convertible Securities
                 that, upon conversion, would not constitute Excluded Shares;
                 for (a) with respect to Section 2.4(i), above, a price per
                 share, or (b) with respect to Sections 2.4(ii) or 2.4(iii),
                 above, a price per share (including the consideration per
                 share paid on issuance of the Option or Convertible Securities)
                 for which Common Stock issuable upon the exercise of such
                 Options or upon conversion or exchange of such Convertible
                 Securities is less than the then Warrant Price immediately
                 prior to such issuance, sale or grant, then, immediately after
                 such issuance, sale or grant, the Warrant Price shall be
                 reduced to the amount determined by dividing (1) the sum of
                 (x) the product derived by multiplying the Warrant Price in
                 effect immediately prior to such issue or sale by the number of
                 shares of Common Stock Deemed Outstanding immediately prior to
                 such issue or sale, plus (y) the consideration, if any,
                 received or deemed to have been received by the Company upon
                 such issue or sale, by (2) the number of shares of Common Stock
                 Deemed Outstanding immediately after such issue or sale. No
                 modification of the issuance terms shall be made upon the
                 actual issuance of such Common Stock upon exercise, conversion
                 or exchange of such Options or Convertible Securities. If
                 there is a change at any time in (i) the exercise price
                 provided for in any Options, (ii) the additional consideration,
                 if any, payable upon the issuance, conversion or exchange of
                 any Convertible Securities or (iii) the rate at which any
                 Convertible Securities are convertible into or exchangeable for
                 Common Stock, then immediately after such change the Warrant
                 Price shall be adjusted to the Warrant Price which would have
                 been in effect at such time had such Options or Convertible
                 Securities still outstanding provided for such changed exercise
                 price, additional consideration or changed conversion rate, as
                 the case may be, at the time initially granted, issued or sold;
                 provided that no adjustment shall be made if such adjustment
                 would result in an increase of the Warrant Price then in
                 effect. However, upon the expiration of any such Options or
                 Convertible Securities, the issuance of which resulted in an
                 adjustment in the Warrant Price pursuant to this Section 2.4,
                 if all or any portion of any such Options or Convertible
                 Securities shall not have been exercised, the Warrant Price
                 shall immediately upon such expiration be increased to the
                 price which it would have been after the issuance of such
                 Options or Convertible Securities on the basis of the Company
                 offering for subscription, purchase, conversion, exchange or
                 acquisition only that number of shares of Common Stock (if any)
                 actually purchased upon the exercise of such Options or
                 Convertible Securities actually exercised. For the purposes of
                 this Section 2.4, the term "Common Stock Deemed Outstanding"
                 means, at any given time, the sum of the number of shares of
                 Common Stock actually outstanding at such time plus the number
                 of shares of Common Stock issuable upon the exercise of all
                 options, rights and warrants and the conversion or exchange of
                 convertible or exchangeable securities outstanding at such
                 time, whether or not such options, rights, or warrants, or
                 convertible or exchangeable securities are actually
                 exercisable, convertible or exchangeable at such time.

2.5 Computation of Consideration. For the purposes of this Section 2, the
consideration for the issue or sale of any securities of the Company shall,
irrespective of the accounting treatment of such consideration,

                           (i) insofar as it consists of cash, be computed at
                  the net amount of cash received by the Company, without
                  deducting any expenses paid or incurred by the Company or any
                  commissions or compensations paid or concessions or discounts
                  allowed to underwriters, dealers or others performing similar
                  services in connection with such issue or sale, and

                           (ii) insofar as it consists of property (including
                  securities) other than cash, be computed at the fair value
                  thereof at the time of such issue or sale, as determined in
                  good faith by the Board of Directors of the Company,

         2.6 Minimum Adjustment of Warrant Quantity. If the amount of any
adjustment of the number Warrant Shares required pursuant to this Section 2
would be less than one tenth (1/10) of one percent (1%) of the number Warrant
Shares in effect under this Warrant at the time such adjustment is otherwise so
required to be made, such amount shall be carried forward and adjustment with
respect thereto shall be made at the time of and together with any subsequent
adjustment which, together with such amount and any other amount or amounts so
carried forward, shall aggregate at least one tenth (1/10) of one percent (1%)
of such number of Warrant Shares. All calculations under this Warrant shall be
made to the nearest one-hundredth of a share.

         2.7 Abandoned Dividend or Distribution. If the Company shall take a
record of the holders of its Common Stock for the purpose of entitling them to
receive a dividend or other distribution (which results in an adjustment to the
Warrant Shares under the terms of this Warrant) and shall, thereafter, and
before such dividend or distribution is paid or delivered to shareholders
entitled thereto, legally abandon its plan to pay or deliver such dividend or
distribution, then any adjustment made to the Warrant Shares by reason of the
taking of such record shall be reversed, and any subsequent adjustments, based
thereon, shall be recomputed.

3. Other Dilutive Events. In case any event shall occur as to which the
provisions of Section 2 are not strictly applicable but the failure to make any
adjustment would not fairly protect the purchase rights represented by this
Warrant in accordance with the essential intent and principles of such Section,
then, in each such case, the Company shall appoint a firm of independent
certified public accountants of recognized national standing (which may be the
regular auditors of the Company), which shall give their opinion upon the
adjustment, if any, on a basis consistent with the essential intent and
principles established in Sections 2, necessary to preserve, without dilution,
the purchase rights represented by this Warrant. Upon receipt of such opinion,
the Company will promptly mail a copy thereof to the Holder and shall make the
adjustments described therein.

4. No Dilution or Impairment. The Company will not, by amendment of its articles
of incorporation or through any consolidation, merger, reorganization, transfer
of assets, 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
of this Warrant, but will at all times in good faith assist in the carrying out
of all such terms and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the Holder against dilution or
other impairment. Without limiting the generality of the foregoing, the Company
(a) shall not permit the par value of any shares of stock receivable upon the
exercise of this Warrant to exceed the amount payable therefor upon such
exercise, (b) will take all such action as may be necessary or appropriate in
order that the Company may validly and legally issue fully paid and
nonassessable shares of stock, free from all taxes, liens, security interests,
encumbrances, preemptive rights and charges on the exercise of the Warrants from
time to time outstanding, (c) will not take any action which results in any
adjustment of the number of Warrant Shares if the total number of shares of
Common Stock (or Other Securities) issuable after the action upon the exercise
of all of the Warrants would exceed the total number of shares of Common Stock
(or Other Securities) then authorized by the Company's certificate of
incorporation and available for the purpose of issue upon such exercise, and (d)
will not issue any capital stock of any class which is preferred as to dividends
or as to the distribution of assets upon voluntary or involuntary dissolution,
liquidation or winding-up, unless the rights of the holders thereof shall be
limited to a fixed sum or percentage of par value or a sum determined by
reference to a formula based on a published index of interest rates, an interest
rate publicly announced by a financial institution or a similar indicator of
interest rates in respect of participation in dividends and to a fixed sum or
percentage of par value in any such distribution of assets.

5. Accountants' Report as to Adjustments. In each case of any adjustment or
readjustment in the shares of Common Stock (or Other Securities) issuable upon
the exercise of this Warrant, the Company at its expense will promptly compute
such adjustment or readjustment in accordance with the terms of this Warrant and
cause independent certified public accountants of recognized national standing
(which may be the regular auditors of the Company) selected by the Company to
verify such computation (other than any computation of the fair value of
property as determined in good faith by the Board of Directors of the Company)
and prepare a report setting forth such adjustment or readjustment and showing
in reasonable detail the method of calculation thereof and the facts upon which
such adjustment or readjustment is based, including a statement of (a) the
consideration received or to be received by the Company for any additional
shares of Common Stock issued or sold or deemed to have been issued, (b) the
number of shares of Common Stock outstanding or deemed to be outstanding, and
(c) the number of Warrant Shares in effect under this Warrant immediately prior
to such issue or sale and as adjusted and readjusted (if required by Section 2)
on account thereof. The Company will forthwith mail a copy of each such report
to each Holder of a Warrant and will, upon the written request at any time of
any Holder of a Warrant, furnish to such Holder a like report setting forth the
number of Warrant Shares under this Warrant at the time in effect and showing in
reasonable detail how it was calculated. The Company will also keep copies of
all such reports at its principal office and will cause the same to be available
for inspection at such office during normal business hours by any Holder of a
Warrant or any prospective purchaser of a Warrant designated by the Holder
thereof.

6. Financial and Business Information

         6.1 Filings. During any period when the Company is a Public Company,
the Company will file on or before the required date all required regular or
periodic reports (pursuant to the Exchange Act) with the Commission and will
deliver to the Holder promptly upon their becoming available one copy of each
report, notice or proxy statement sent by the Company to its stockholders
generally, and of each regular or periodic report (pursuant to the Exchange Act)
and any registration statement, prospectus or written communication (other than
transmittal letters) (pursuant to the Securities Act), filed by the Company with
(i) the Commission or (ii) any securities exchange on which shares of Common
Stock are listed.

         6.2 Listing of Shares. The Company shall promptly secure the listing of
the shares of Common Stock issuable upon exercise of this Warrant upon each
national securities exchange or automated quotation system, if any, upon which
shares of Common Stock are then listed (subject to official notice of issuance
upon exercise of this Warrant) and shall maintain, so long as any other shares
of Common Stock shall be so listed, such listing of all shares of Common Stock
from time to time issuable upon the exercise of this Warrant; and the Company
shall so list on each national securities exchange or automated quotation
system, as the case may be, and shall maintain such listing of, any other shares
of capital stock of the Company issuable upon the exercise of this Warrant if
and so long as any shares of the same class shall be listed on such national
securities exchange or automated quotation system.

         6.3      Notices of Corporate Action.  In the event of
                  ---------------------------

                  (a) any taking by the Company of a record of the holders of
         any class of securities for the purpose of determining the holders
         thereof who are entitled to receive any dividend (other than a regular
         periodic dividend payable in cash out of earned surplus in an amount
         not exceeding the amount of the immediately preceding cash dividend for
         such period) or other distribution, or any right to subscribe for,
         purchase or otherwise acquire any shares of stock of any class or any
         other securities or property, or to receive any other right, or

                  (b) any capital reorganization of the Company, any
         reclassification or recapitalization of the capital stock of the
         Company or any consolidation or merger involving the Company and any
         other Person, any transaction or series of transactions in which more
         than 50% of the Voting Securities of the Company are transferred to
         another Person or any transfer, sale or other disposition of all or
         substantially all the assets of the Company to any other Person, or

                  (c) any voluntary or involuntary dissolution, liquidation or
         winding-up of the Company,

the Company will mail to the Holder a notice specifying (i) the date or expected
date on which any such record is to be taken for the purpose of such dividend,
distribution or right, and the amount and character of such dividend,
distribution or right, and (ii) the date or expected date on which any such
reorganization, reclassification, recapitalization, consolidation, merger,
transfer, dissolution, liquidation or winding-up is to take place and the time,
if any such time is to be fixed, as of which the holders of record of Common
Stock (or Other Securities) shall be entitled to exchange their shares of Common
Stock (or Other Securities) for the securities or other property deliverable
upon such reorganization, reclassification, recapitalization, consolidation,
merger, transfer, dissolution, sale, disposition, liquidation or winding-up.
Such notice shall be mailed at least 45 days prior to the date therein
specified.

7. Restrictions on Transfer.

         7.1 Restrictive Legends. Except as otherwise permitted by this Section
7, each Warrant (including each Warrant issued upon the transfer of any Warrant)
shall be stamped or otherwise imprinted with a legend in substantially the
following form:

         "THIS WARRANT AND ANY SECURITIES ACQUIRED UPON EXERCISE OF THIS WARRANT
         HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
         OR THE SECURITIES LAW OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED OR
         OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
         STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR
         PURSUANT TO AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF
         SUCH ACT AND SUCH LAWS. THIS WARRANT AND SUCH SECURITIES MAY NOT BE
         SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH
         THE CONDITIONS SPECIFIED IN THIS WARRANT AND IN THE REGISTRATION RIGHTS
         AGREEMENT BY AND BETWEEN VISEON, INC. AND THE HOLDERS SPECIFIED
         THEREIN."

Except as otherwise permitted by this Section 7, until such time as the
Securities and Exchange Commission declares effective the registration statement
required by the terms of Section 2 of the Registration Rights Agreement between
the Company and the Holder, each certificate for Common Stock (or Other
Securities) issued upon the exercise of any Warrant, and each certificate issued
upon the transfer of any such Common Stock (or Other Securities), shall be
stamped or otherwise imprinted with a legend in substantially the following
form:

         "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE
         SECURITIES LAW OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED OR
         OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
         STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR
         PURSUANT TO AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF
         SUCH ACT AND SUCH LAWS."

         7.2 Transfer to Comply With the Securities Act. Restricted Securities
may not be sold, assigned, pledged, hypothecated, encumbered or in any manner
transferred or disposed of, in whole or in part, except in compliance with the
provisions of the Securities Act and state securities or Blue Sky laws and the
terms and conditions hereof.

         7.3 Termination of Restrictions. The restrictions imposed by this
Section 7 on the transferability of Restricted Securities shall cease and
terminate as to any particular Restricted Securities (a) when a registration
statement with respect to the sale of such securities shall have been declared
effective under the Securities Act and such securities shall have been disposed
of in accordance with such registration statement, (b) when such securities are
sold pursuant to Rule 144 (or any similar provision then in force) under the
Securities Act, or (c) when, in the opinion of both counsel for the Holder and
counsel for the Company, such restrictions are no longer required or necessary
in order to protect the Company against a violation of the Securities Act upon
any sale or other disposition of such securities without registration
thereunder. Whenever such restrictions shall cease and terminate as to any
Restricted Securities, the Holder shall be entitled to receive from the Company,
without expense, new securities of like tenor not bearing the applicable legends
required by Section 7.1.

8. Reservation of Stock, etc. The Company shall at all times reserve and keep
available, solely for issuance and delivery upon exercise of the Warrants, the
number of shares of Common Stock (or Other Securities) from time to time
issuable upon exercise of all Warrants at the time outstanding. All shares of
Common Stock (or Other Securities) issuable upon exercise of any Warrants shall
be duly authorized and, when issued upon such exercise, shall be validly issued
and, in the case of shares, fully paid and nonassessable with no liability on
the part of the holders thereof, and, in the case of all securities, shall be
free from all taxes, liens, security interests, encumbrances, preemptive rights
and charges. The transfer agent for the Common Stock, which may be the Company
("Transfer Agent"), and every subsequent Transfer Agent for any shares of the
Company's capital stock issuable upon the exercise of any of the purchase rights
represented by this Warrant, are hereby irrevocably authorized and directed at
all times until the Expiration Date to reserve such number of authorized and
unissued shares as shall be requisite for such purpose. The Company shall keep
copies of this Warrant on file with the Transfer Agent for the Common Stock and
with every subsequent Transfer Agent for any shares of the Company's capital
stock issuable upon the exercise of the rights of purchase represented by this
Warrant. The Company shall supply such Transfer Agent with duly executed stock
certificates for such purpose. All Warrant certificates surrendered upon the
exercise of the rights thereby evidenced shall be canceled, and such canceled
Warrants shall constitute sufficient evidence of the number of shares of stock
that have been issued upon the exercise of such Warrants. Subsequent to the
Expiration Date, no shares of stock need be reserved in respect of any
unexercised Warrant.

9.       Registration and Transfer of Warrants, etc.

         9.1 Warrant Register; Ownership of Warrants. Each Warrant issued by the
Company shall be numbered and shall be registered in a warrant register (the
"Warrant Register") as it is issued and transferred, which Warrant Register
shall be maintained by the Company at its principal office or, at the Company's
election and expense, by a Warrant Agent or the Company's transfer agent. The
Company shall be entitled to treat the registered Holder of any Warrant on the
Warrant Register as the owner in fact thereof for all purposes and shall not be
bound to recognize any equitable or other claim to or interest in such Warrant
on the part of any other Person, and shall not be affected by any notice to the
contrary, except that, if and when any Warrant is properly assigned in blank,
the Company may (but shall not be obligated to) treat the bearer thereof as the
owner of such Warrant for all purposes. Subject to Section 7, a Warrant, if
properly assigned, may be exercised by a new holder without a new Warrant first
having been issued.

         9.2 Transfer of Warrants. Subject to compliance with Section 7, if
applicable, this Warrant and all rights hereunder are transferable in whole or
in part, without charge to the Holder hereof, upon surrender of this Warrant
with a properly executed Form of Assignment attached hereto as Exhibit B at the
principal office of the Company. Upon any partial transfer, the Company shall at
its expense issue and deliver to the Holder a new Warrant of like tenor, in the
name of the Holder, which shall be exercisable for such number of shares of
Common Stock with respect to which rights under this Warrant were not so
transferred.

         9.3 Replacement of Warrants. On receipt by the Company of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant and, in the case of any such loss, theft or
destruction of this Warrant, on delivery of an indemnity agreement reasonably
satisfactory in form and amount to the Company or, in the case of any such
mutilation, on surrender of such Warrant to the Company at its principal office
and cancellation thereof, the Company at its expense shall execute and deliver,
in lieu thereof, a new Warrant of like tenor.
         9.4 Adjustments To Warrant Quantity. Notwithstanding any adjustment in
the number or kind of shares of Common Stock or other securities purchasable
upon exercise of this Warrant, any Warrant theretofore or thereafter issued may
continue to express the same number and kind of shares of Common Stock as are
stated in this Warrant, as initially issued.

         9.5 Fractional Shares. Notwithstanding any adjustment pursuant to
Section 2 in the number of shares of Common Stock covered by this Warrant or any
other provision of this Warrant, the Company may, but shall not be required to,
issue fractions of shares upon exercise of this Warrant or to distribute
certificates which evidence fractional shares. In lieu of fractional shares, the
Company shall make payment to the Holder, at the time of exercise of this
Warrant as herein provided, in an amount in cash equal to such fraction
multiplied by the Closing Price of a share of Common Stock on the date of
Warrant exercise.

10. Definitions. As used herein, unless the context otherwise requires, the
following terms have the following respective meanings:

                  Affiliate: Any person that directly or indirectly, through one
or more intermediaries, controls, is controlled by, or is under common control
with, the applicable person. For purposes of this definition, "control" has the
meaning specified in Rule 12b-2 under the Exchange Act.

                  Business Day: Any day other than a Saturday or a Sunday or a
day on which commercial banking institutions in the City of Nevada are
authorized by law to be closed. Any reference to "days" (unless Business Days
are specified) shall mean calendar days.

                  Closing Price: For any day, shall be (i) the last reported
sales price regular way of the Common Stock on such day on the principal
securities exchange on which the Common Stock is then listed or admitted to
trading or on Nasdaq, as applicable, (ii) if no sale takes place on such day on
any such securities exchange or system, the average of the closing bid and asked
prices, regular way, on such day for the Common Stock as officially quoted on
any such securities exchange or system, , (iii) if on such day such shares of
Common Stock are not then listed or admitted to trading on any securities
exchange or system, the last reported sale price, regular way, on such day for
the Common Stock, (iv)or if no sale takes place on such day the average of the
comparative bid and asked prices quoted for the Common Stock in the National
Association of Securities Dealers, Inc. Automated Quotation ("NASDAQ") System as
of 4:00 P.M., New York City time on such day, or if such shares shall not be
quoted in the NASDAQ System, the average of the high and low bid and asked price
of the Common Stock on such day in the domestic over-the-counter market as
reported by the National Quotation Bureau, Incorporated, or any other successor
organization. If at any time such shares of Common Stock are not listed on any
domestic exchange or quoted in the NASDAQ System or the domestic
over-the-counter market, the Closing Price shall be the fair market value
thereof determined by the Board of Directors of the Company in good faith.

                  Code:  As defined in Section 1.6.

                  Commission:  The  Securities  and Exchange  Commission  or any
other  federal  agency at the time administering the Securities Act.

                  Common Stock: As defined in the introduction to this Warrant,
such term to include any stock into which such Common Stock shall have been
changed or any stock resulting from any reclassification of such Common Stock,
and all other stock of any class or classes (however designated) of the Company
the holders of which have the right, without limitation as to amount, either to
all or to a share of the balance of current dividends and liquidating dividends
after the payment of dividends and distributions on any shares entitled to
preference.

                  Company: As defined in the introduction to this Warrant, such
term to include any corporation, which shall succeed to or assume the
obligations of the Company hereunder.

                  Exchange Act: The Securities Exchange Act of 1934, or any
similar federal statute, and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.

                  Excluded Shares: (i) shares of Common Stock issued or issuable
pursuant to the Company's Series A Convertible Preferred Stock, specifically
including all conversion shares and all shares that may be issued as dividends
thereon, (ii) shares of Common Stock issuable upon the exercise of any options
or warrants outstanding on the date of this Warrant and listed in Schedule 3(b)
of the Purchase Agreement, (iii) shares of Common Stock issuable pursuant to or
upon the conversion of any note, debenture, debt instrument and all other
written agreements to which the Company is a party on the date of this Warrant
and listed in Schedule 3(b) of the Purchase Agreement (iv) shares of Common
Stock issued or issuable pursuant to the Company's Series A-1 Warrants issued
pursuant to the Purchase Agreement and (v) shares of Common Stock issued or
issuable pursuant to the Company's Series A-2 Warrants issued pursuant to the
Purchase Agreement.

                  Expiration Date:  As defined in the introduction to this
Warrant.
                  ---------------

                  Holder:  As defined in the introduction to this Warrant.
                  ------

                  NASD:  The National Association of Securities Dealers, Inc.
                  ----

                  Other Securities: Any stock (other than Common Stock) and
other securities of the Company or any other Person (corporate or otherwise)
which the holders of the Warrants at any time shall be entitled to receive, or
shall have received, upon the exercise of the Warrants, in lieu of or in
addition to Common Stock, or which at any time shall be issuable or shall have
been issued in exchange for or in replacement of Common Stock or Other
Securities pursuant to Section 2 or otherwise.

                  Public Company:  A company required to file periodic reports
under the Exchange Act.
                  ---------------

                  Purchase Agreement : The Purchase Agreement dated as of the
date of this Warrant by and between the Company and the initial holder of this
Warrant.

                  Person: An individual, firm, partnership, corporation,
professional corporation, trust, joint venture, association, joint stock
company, limited liability company, unincorporated organization or any other
entity or organization, including a government or agency or political
subdivision thereof, and shall include any successor (by merger or otherwise) of
such entity.

                  Registration Rights Agreement: The Registration Rights
Agreement dated the date hereof, by and between the Company and the holders
specified therein.

                  Restricted Securities: (a) any Warrants bearing the applicable
legend set forth in Section 7.1, (b) any shares of Common Stock (or Other
Securities) issued or issuable upon the exercise of Warrants which are evidenced
by a certificate or certificates bearing the applicable legend set forth in such
Section, and (c) any shares of Common Stock (or Other Securities) issued
subsequent to the exercise of any of the Warrants as a dividend or other
distribution with respect to, or resulting from a subdivision of the outstanding
shares of Common Stock (or other Securities) into a greater number of shares by
reclassification, stock splits or otherwise, or in exchange for or in
replacement of the Common Stock (or Other Securities) issued upon such exercise,
which are evidenced by a certificate or certificates bearing the applicable
legend set forth in such Section.

                  Securities Act: The Securities Act of 1933, or any similar
federal statute, and the rules and regulations of the Commission thereunder, all
as the same shall be in effect at the time.

                  Trading Day: A day on which the securities exchange,
association, or quotation system on which shares of Common Stock are listed for
trading shall be open for business or, if the shares of Common Stock shall not
be listed on such exchange, association, or quotation system for such day, a day
with respect to which trades in the United States domestic over the counter
market shall be reported.

                  Warrant:  As defined in the introduction to this Warrant.
                  -------

                  Warrant Price:  As defined in the first paragraph of this
Warrant.
                  -------------

                  Warrant Shares:  As defined in the first paragraph of this
Warrant.
                  --------------

11. Remedies; Specific Performance. The Company stipulates that there would be
no adequate remedy at law to the Holder of this Warrant in the event of any
default or threatened default by the Company in the performance of or compliance
with any of the terms of this Warrant and accordingly, the Company agrees that,
in addition to any other remedy to which the Holder may be entitled at law or in
equity, the Holder shall be entitled to seek to compel specific performance of
the obligations of the Company under this Warrant, without the posting of any
bond, in accordance with the terms and conditions of this Warrant in any court
of the United States or any State thereof having jurisdiction, and if any action
should be brought in equity to enforce any of the provisions of this Warrant,
the Company shall not raise the defense that there is an adequate remedy at law.
Except as otherwise provided by law, a delay or omission by the Holder hereto in
exercising any right or remedy accruing upon any such breach shall not impair
the right or remedy or constitute a waiver of or acquiescence in any such
breach. No remedy shall be exclusive of any other remedy. All available remedies
shall be cumulative.

12. No Rights or Liabilities as Shareholder. Nothing contained in this Warrant
shall be construed as conferring upon the Holder hereof any rights as a
shareholder of the Company or as imposing any obligation on the Holder to
purchase any securities or as imposing any liabilities on the Holder as a
shareholder of the Company, whether such obligation or liabilities are asserted
by the Company or by creditors of the Company.

13. Notices. Any notice or other communication required or permitted hereunder
shall be deemed given if in writing and delivered personally, telegraphed,
telexed, sent by facsimile transmission or sent by certified, registered or
express mail, postage prepaid. Any such notice shall be deemed given when so
delivered personally or sent by overnight air courier or facsimile transmission
or, if mailed, two days after the date of deposit in the United States mail, as
follows:

                                            If to Holder:

                                            With a copy to:

                                            If to Viseon, Inc.:

                                            Viseon, Inc.
                                            Attn:    President
                                            8445 Freeport Parkway, Suite  245
                                            Irving, TX 75063

                                            With a copy to:

                                            Albert B. Greco, Jr.
                                            Law Offices of Albert B. Greco, Jr.
                                            16901 N. Dallas Parkway, Suite 230
                                            Addison, Texas  75001
                                            Facsimile: 972-818-7343

Any party may be given notice in accordance with this Section by any other party
at another address or person for receipt of notices, if such party so designates
such other person or address in writing in accordance with this Section 13. The
Company shall give Notice to any subsequent Holder at such address as it appears
in the Warrant Register.

All such notices and communications (and deliveries) shall be deemed to have
been duly given: at the time delivered by hand, if personally delivered; when
receipt is acknowledged, if telecopied; on the next Business Day, if timely
delivered to a courier guaranteeing overnight delivery; and five days after
being deposited in the mail, if sent first class or certified mail, return
receipt requested, postage prepaid; provided, that the exercise of any Warrant
shall be effective in the manner provided in Section 1.

14. Amendments. This Warrant and any term hereof may not be amended, modified,
supplemented or terminated, and waivers or consents to departures from the
provisions hereof may not be given, except by written instrument duly executed
by the party against which enforcement of such amendment, modification,
supplement, termination or consent to departure is sought.

15. Descriptive Headings, Etc. The headings in this Warrant are for convenience
of reference only and shall not limit or otherwise affect the meaning of terms
contained herein. Unless the context of this Warrant otherwise requires: (1)
words of any gender shall be deemed to include each other gender; (2) words
using the singular or plural number shall also include the plural or singular
number, respectively; (3) the words "hereof", "herein" and "hereunder" and words
of similar import when used in this Warrant shall refer to this Warrant as a
whole and not to any particular provision of this Warrant, and Section and
paragraph references are to the Sections and paragraphs of this Warrant unless
otherwise specified; (4) the word "including" and words of similar import when
used in this Warrant shall mean "including, without limitation," unless
otherwise specified; (5) "or" is not exclusive; and (6) provisions apply to
successive events and transactions.

16. Law Governing Agreement. This Agreement shall be interpreted, construed and
enforced and its construction and performance shall be governed by the laws of
the State of Nevada without regard to principles of conflicts of laws, except to
the extent that Federal law may apply.

17. Registration Rights Agreement. The shares of Common Stock (and Other
Securities) issuable upon exercise of this Warrant (or upon conversion of any
shares of Common Stock issued upon such exercise) shall constitute Registrable
Securities (as such term is defined in the Registration Rights Agreement). Each
holder of this Warrant shall be entitled to all of the benefits afforded to a
holder of any such Registrable Securities under the Registration Rights
Agreement and such holder, by its acceptance of this Warrant, agrees to be bound
by and to comply with the terms and conditions of the Registration Rights
Agreement applicable to such holder as a holder of such Registrable Securities.

18. Redemption. Commencing on the first Trading Day after the Securities and
Exchange Commission declares the registration statement filed by the Company
pursuant to Section 2 of the Registration Rights Agreement effective, the
Company has the right to redeem this Warrant for the Redemption Price of ten
cents ($0.10) per Warrant Share; provided that the average Closing Price of the
Company's Common Stock meets or exceeds the applicable minimum dollar amounts
within the specified period and for the length of time set forth hereinbelow and
that the average trading volume of the Company's Common Stock meets or exceeds
the applicable trading volumes within the specified period and for the length of
time set forth hereinbelow and provided further that following the occurrence of
any such event, the company gives the Holder fifteen (15) days prior written
notice of the Company's intention to redeem this Warrant (the "Redemption
Notice"), identifying a date, no earlier than fifteen days thereafter, on which
the Company will exercise such rights; subject to the Closing Price of the
Company's Common Stock sustaining the minimum levels throughout the time periods
set forth below:

                  (a) If the average Closing Price of the Company's Common Stock
                  for any twenty consecutive Trading Days is $2.50 or more and
                  the average trading volume of the shares of Common Stock has
                  been 125,000 shares or more during the same 20 consecutive
                  Trading Days at any time prior to the second anniversary of
                  the Issue Date (as defined in the Purchase Agreement).

                  (b) If the average Closing Price of the Company's Common Stock
                  for any twenty consecutive Trading Days is $3.50 or more and
                  the average trading volume of the shares of Common Stock has
                  been 125,000 shares or more during the same 20 consecutive
                  Trading Days, at any time beginning on the second anniversary
                  of the Issue Date (as defined in the Purchase Agreement)
                  through the Expiration Date.

The $2.50 amount set forth in clause (a) above and the $3.50 amount set forth in
clause (b) (each, a "Trigger Amount") shall be subject to adjustment in the
event that the Company shall (i) pay a dividend or make a distribution on its
Common Stock, each in shares of Common Stock, (ii) subdivide its outstanding
shares of Common Stock into a greater number of shares, or (iii) combine its
outstanding shares of Common Stock into a smaller number of shares, by
multiplying the Trigger Amount by a fraction, the numerator of which is the
number of outstanding shares of Common Stock immediately prior to giving effect
to such dividend, distribution, subdivision, or combination and the denominator
of which is the number of shares of Common Stock outstanding immediately after
giving effect to such dividend, distribution, subdivision, or combination.

The Holder may exercise this Warrant at any time before the date fixed for the
redemption of this Warrant in the Redemption Notice, however, at the final bell
signifying the close of the NYSE on the day preceding the date specified in the
Redemption Notice, any Warrant or portion thereof that remains unexercised shall
thereupon be no longer exercisable, exchangeable or convertible in any manner
for or into any Warrant Shares or other equity securities of the Company and the
only consideration payable by the Company thereon and in exchange therefore or
other obligation of the Company with respect thereto shall be the payment of the
Redemption Price upon surrender of the original Warrant at the principal place
of business of the company or at any other address or to the attention of any
agent as the Company may specify in the Redemption Notice.

19. Restriction on Exercise by the Holder. Notwithstanding anything herein to
the contrary, in no event shall the Holder have the right or be required to
exercise this Warrant to the extent, and only to the extent, that as a result of
such exercise, the aggregate number of shares of Common Stock beneficially owned
by such Holder, its Affiliates and any "group" (as defined in accordance with
Section 13(d) of the Exchange Act and the rules promulgated thereunder) of which
the Holder may be deemed to be a party would exceed 9.99% of the outstanding
shares of the Common Stock following such exercise. For purposes of this Section
19, beneficial ownership shall be calculated in accordance with Sections 13(d)
and Section 16(a) of the Exchange Act. The provisions of this Section 19 may be
waived by a Holder as to itself (and solely as to itself) upon not less than
sixty-five (65) days, prior written notice to the Company, and the provisions of
this Section 19 shall continue to apply until such 65th day (or later, if stated
in the notice of waiver). Nothing contained in this paragraph 19 or any other
provision hereof shall restrict, affect or limit in any manner the right of the
Company to redeem this Warrant in accordance with the provisions of paragraph 18
hereinabove.

Viseon, Inc.
    (FORMERLY RSI SYSTEMS, INC.)

------------------------------------
By:      John Harris
Its:     Chief Executive Officer

<PAGE>

Warrant No. W-Series-A-1 -  Exhibit B
                            ---------
Warrant No. W-Series-A-1 -  Exhibit A
                            ---------
                                    Exhibit A

                              FORM OF SUBSCRIPTION

                 [To be executed only upon exercise of Warrant]

To:  Viseon, Inc.:

The  undersigned  registered  holder of the within  Warrant  hereby  irrevocably
exercises  such  Warrant for, and purchases thereunder, ________________* shares
of Common stock of Viseon,  Inc.  (Formerly  RSI Systems,  Inc.) and herewith
makes  payment of  $_________________  therefor,  and requests that the
certificates  for such shares be issued   in   the   name   of,    and
delivered    to    _____________________________,    whose    address   is
--------------------------------

-----------------------------------------------------------------------------.

Dated:  _______________________
                                          --------------------------------------
                                          (Signature  must  conform  in all
                                          respects  to the  name  of holder as
                                          specified on the face of Warrant)

                                          (Street Address)

                                          (City)
                                          (State) Zip Code)

<PAGE>

                                    Exhibit B

                               FORM OF ASSIGNMENT

                [To be executed only upon assignment of Warrant]

For value received, the undersigned registered holder of the within Warrant
hereby sells, assigns and transfers unto
_________________________________________ the right represented by such Warrant
to purchase _________________________________________________ shares of Common
Stock of Viseon, Inc. (Formerly RSI Systems, Inc.), to which such Warrant
relates, and appoints _______________________________________, Attorney to make
such transfer on the books of Viseon, Inc. (Formerly RSI Systems, Inc.),
maintained for such purpose, with full power of substitution in the premises.

Dated:  ___________________
                                          -------------------------------------
                                          (Signature  must  conform  in all
                                          respects  to the  name  of holder as
                                          specified on the face of Warrant)

                                          (Street Address)

                                          (City)
                                          (State) Zip Code)

Signed in the presence of:

                  (printed name)

------------------------------------

------------------------------------
                  (printed name)

<PAGE>

--------
*  Insert here the number of shares called for on the face of this Warrant (or,
   in the case of a partial exercise, the portion thereof as to which this
   Warrant is being exercised), in either case without making any adjustment for
   any other securities or property or cash which, pursuant to the adjustment
   provisions of this Warrant, may be delivered upon exercise. In the case of
   partial exercise, a new Warrant or Warrants will be issued and delivered,
   representing the unexercised portion of the Warrant, to the holder
   surrendering the Warrant.

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