Document:

Exhibit 4.2

    
      

    

    

    Exhibit
      4.2

    

    EXHIBIT
      A

    

    SEQUIAM
      CORPORATION

    

    CERTIFICATE
      OF DETERMINATION OF PREFERENCES, 

    RIGHTS
      AND LIMITATIONS

    OF

    SERIES
      A 9% CONVERTIBLE PREFERRED STOCK

    

    PURSUANT
      TO SECTION 401 OF THE 

    CALIFORNIA
      GENERAL CORPORATION LAW

    

    The
      undersigned, Nicholas VandenBrekel and Mark L. Mroczkowski, do hereby certify
      that:

    

    1. 
      They are the President and Secretary, respectively, of Sequiam Corporation,
      a
      California corporation (the “Corporation”).

    

    2. 
      The Corporation is authorized to issue 50,000,000 shares of preferred stock,
      none of which have been issued.

    

    3. 
      The following resolutions were duly adopted by the Board of
      Directors:

    

    WHEREAS,
      the Certificate of Incorporation of the Corporation provides for a class of
      its
      authorized stock known as preferred stock, comprised of 50,000,000 shares,
      $0.001 par value, issuable from time to time in one or more series;

    

    WHEREAS,
      the Board of Directors of the Corporation is authorized to fix the dividend
      rights, dividend rate, voting rights, conversion rights, rights and terms of
      redemption and liquidation preferences of any wholly unissued series of
      preferred stock and the number of shares constituting any series and the
      Determination thereof, of any of them; and

    

    WHEREAS,
      it is the desire of the Board of Directors of the Corporation, pursuant to
      its
      authority as aforesaid, to fix the rights, preferences, restrictions and other
      matters relating to a series of the preferred stock, which shall consist of,
      except as otherwise set forth in the Purchase Agreement, up to 1,575 shares
      of
      the preferred stock which the corporation has the authority to issue, as
      follows:

    

    NOW,
      THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby provide
      for
      the issuance of a series of preferred stock for cash or exchange of other
      securities, rights or property and does hereby fix and determine the rights,
      preferences, restrictions and other matters relating to such series of preferred
      stock as follows:

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    TERMS
      OF PREFERRED STOCK

    

    Section
      1.  Definitions.
      Capitalized terms used and not otherwise defined herein that are defined in
      the
      Purchase Agreement shall have the meanings given such terms in the Purchase
      Agreement. For the purposes hereof, the following terms shall have the following
      meanings:

    

    “Alternate
      Consideration”
shall
      have the meaning set forth in Section 7(e).

     

    “Bankruptcy
      Event”
means
      any of the following events: (a) the Corporation or any Significant Subsidiary
      (as such term is defined in Rule 1-02(w) of Regulation S-X) thereof commences
      a
      case or other proceeding under any bankruptcy, reorganization, arrangement,
      adjustment of debt, relief of debtors, dissolution, insolvency or liquidation
      or
      similar law of any jurisdiction relating to the Corporation or any Significant
      Subsidiary thereof; (b) there is commenced against the Corporation or any
      Significant Subsidiary thereof any such case or proceeding that is not dismissed
      within 60 days after commencement; (c) the Corporation or any Significant
      Subsidiary thereof is adjudicated insolvent or bankrupt or any order of relief
      or other order approving any such case or proceeding is entered; (d) the
      Corporation or any Significant Subsidiary thereof suffers any appointment of
      any
      custodian or the like for it or any substantial part of its property that is
      not
      discharged or stayed within 60 days; (e) the Corporation or any Significant
      Subsidiary thereof makes a general assignment for the benefit of creditors;
      (f)
      the Corporation or any Significant Subsidiary thereof calls a meeting of its
      creditors with a view to arranging a composition, adjustment or restructuring
      of
      its debts; or (g) the Corporation or any Significant Subsidiary thereof, by
      any
      act or failure to act, expressly indicates its consent to, approval of or
      acquiescence in any of the foregoing or takes any corporate or other action
      for
      the purpose of effecting any of the foregoing.

    

    “Base
      Conversion Price”
shall
      have the meaning set forth in Section 7(b).

    

    “Buy-In”
shall
      have the meaning set forth in Section 6(e)(iii).

    

    “Change
      of Control Transaction”
means
      the occurrence after the date hereof of any of (i) an acquisition after the
      date
      hereof by an individual or legal entity or “group” (as described in Rule
      13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether
      through legal or beneficial ownership of capital stock of the Corporation,
      by
      contract or otherwise) of in excess of 40% of the voting securities of the
      Corporation, or (ii) the Corporation merges into or consolidates with any other
      Person, or any Person merges into or consolidates with the Corporation and,
      after giving effect to such transaction, the stockholders of the Corporation
      immediately prior to such transaction own less than 60% of the aggregate voting
      power of the Corporation or the successor entity of such transaction, or (iii)
      the Corporation sells or transfers its assets, as an entirety or substantially
      as an entirety, to another Person and the stockholders of the Corporation
      immediately prior to such transaction own less than 60% of the aggregate voting
      power of the acquiring entity immediately after the transaction, (iv) a
      replacement at one time or within a one year period of more than one-half of
      the
      members of the Corporation’s board of directors which is not approved by a
      majority of those individuals who are members of the board of directors on
      the
      date hereof (or by those individuals who are serving as members of the board
      of
      directors on any date whose nomination to the board of directors was approved
      by
      a majority of the members of the board of directors who are members on the
      date
      hereof), or (v) the execution by the Corporation of an agreement to which the
      Corporation is a party or by which it is bound, providing for any of the events
      set forth above in (i) through (iv).

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    “Closing
      Date”
means
      the Trading Day when all of the Transaction Documents have been executed and
      delivered by the applicable parties thereto, and all conditions precedent to
      (i)
      the Holders’ obligations to pay the Subscription Amount and (ii) the
      Corporation’s obligations to deliver the Securities have been satisfied or
      waived.

    

    “Commission”
means
      the Securities and Exchange Commission.

    

    “Common
      Stock”
means
      the Corporation’s common stock, par value $0.001 per share, and stock of any
      other class of securities into which such securities may hereafter have been
      reclassified or changed into.

    

    “Common
      Stock Equivalents”
means
      any securities of the Corporation or the Subsidiaries which would entitle the
      holder thereof to acquire at any time Common Stock, including, without
      limitation, any debt, preferred stock, rights, options, warrants or other
      instrument that is at any time convertible into or exchangeable for, or
      otherwise entitles the holder thereof to receive, Common Stock.

    

    “Conversion
      Amount”
means
      the sum of the Stated Value at issue.

    

    “Conversion
      Date”
shall
      have the meaning set forth in Section 6(a).

    

    “Conversion
      Price”
shall
      have the meaning set forth in Section 6(b). 

    

    “Conversion
      Shares”
means,
      collectively, the shares of Common Stock into which the shares of Preferred
      Stock are convertible in accordance with the terms hereof.

    

    “Conversion
      Shares Registration Statement”
means
      a
      registration statement that meets the requirements of the Registration Rights
      Agreement and registers the resale of all Conversion Shares by the Holder,
      who
      shall be named as a “selling stockholder” thereunder, all as provided in the
      Registration Rights Agreement.

     

    “Dilutive
      Issuance”
shall
      have the meaning set forth in Section 7(b).

    

    “Dilutive
      Issuance Notice”
shall
      have the meaning set forth in Section 7(b).

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    “Dividend
      Payment Date”
shall
      have the meaning set forth in Section 3(a).

     

    “Dividend
      Share Amount”
shall
      have the meaning set forth in Section 3(a).

    

    “Effective
      Date”
means
      the date that the Conversion Shares Registration Statement is declared effective
      by the Commission.

    

    “Equity
      Conditions”
shall
      mean, during the period in question, (i)
      the
      Corporation shall have duly honored all conversions scheduled to occur or
      occurring by virtue of one or more Notices of Conversion of the Holder on or
      prior to the dates so requested or required, if any, (ii) all liquidated damages
      and other amounts owing to the Holder in respect of the Preferred Stock shall
      have been paid, (iii) there is an effective Conversion Shares Registration
      Statement pursuant to which the Holder is permitted to utilize the prospectus
      thereunder to resell all of the shares of Common Stock issuable pursuant to
      the
      Transaction Documents (and the Corporation believes, in good faith, that such
      effectiveness will continue uninterrupted for the foreseeable future), (iv)
      the
      Common Stock is trading on the Trading Market and all of the shares issuable
      pursuant to the Transaction Documents are listed for trading on a Trading Market
      (and the Corporation believes, in good faith, that trading of the Common Stock
      on a Trading Market will continue uninterrupted for the foreseeable future),
      (v)
      there is a sufficient number of authorized but unissued and otherwise unreserved
      shares of Common Stock for the issuance of all of the shares of Common Stock
      issuable pursuant to the Transaction Documents, (vi) there is then existing
      no
      Triggering Event or event which, with the passage of time or the giving of
      notice, would constitute a Triggering Event, (vii) the issuance of the shares
      in
      question to the Holder would not violate the limitations set forth in Section
      6(c), (viii) no public announcement of a pending or proposed Fundamental
      Transaction, Change of Control Transaction or acquisition transaction has
      occurred that has not been consummated and (ix) for a period of 10 consecutive
      Trading Days prior to the applicable date in question, the daily trading volume
      for the Common Stock on the Trading Market exceeds 250,000 shares per Trading
      Day (subject to adjustment for forward and reverse stock splits and the
      like).

    

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended, and the rules and regulations
      promulgated thereunder.

    

    “Exempt
      Issuance”
means
      the issuance of (a) shares of Common Stock or options to employees, officers
      or
      directors of the Corporation pursuant to any stock or option plan duly adopted
      by a majority of the non-employee members of the Board of Directors of the
      Corporation or a majority of the members of a committee of non-employee
      directors established for such purpose;
      provided,
      however,
      in the
      event that the Board of Directors des not have any non-employee members, such
      plan may be approved by a majority of the members of the Board of Directors
      provided that vFinance, or its delegated agent, is granted notice and observer
      rights of the Board of Directors, (b) securities upon the exercise of or
      conversion of any securities issued hereunder, convertible securities, options
      or warrants issued and outstanding on the date of the Purchase Agreement,
      provided that such securities have not been amended since the date of the
      Purchase Agreement to increase the number of such securities or to decrease
      the
      exercise or conversion price of any such securities, and (c) securities issued
      pursuant to acquisitions or strategic transactions approved by a majority of
      the
      disinterested directors, provided any such issuance shall only be to a Person
      which is, itself or through its subsidiaries, an operating company in a business
      synergistic with the business of the Corporation and in which the Corporation
      receives benefits in addition to the investment of funds, but shall not include
      a transaction in which the Corporation is issuing securities primarily for
      the
      purpose of raising capital or to an entity whose primary business is investing
      in securities.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    “Forced
      Conversion Amount”
shall
      mean (i) the greater of (A) 20% of the aggregate Stated Value of all Preferred
      Stock then outstanding or (B) 25% of the aggregate dollar trading volume of
      the
      Common Stock for the 15 Trading Days immediately prior to the Forced Conversion
      Date, (ii) accrued but unpaid dividends and (iii) all liquidated damages and
      other amounts due in respect of the Preferred Stock.

    

    “Forced
      Conversion Date”
shall
      have the meaning set forth in Section 8(a).

    

    “Forced
      Conversion Notice”
shall
      have the meaning set forth in Section 8(a).

    

    “Forced
      Conversion Notice Date”
shall
      have the meaning set forth in Section 8(a).

    

    “Fundamental
      Transaction”
shall
      have the meaning set forth in Section 7(e).

    

    “Holder”
shall
      have the meaning given such term in Section 2.

    

    “Junior
      Securities”
means
      the Common Stock and all other equity or equity equivalent securities of the
      Corporation other than those securities which are explicitly senior or pari
      passu in rights or liquidation preference to the Preferred Stock.

    

    “Liquidation”
shall
      have the meaning given such term in Section 5.

    

    “New
      York Courts”
shall
      have the meaning given such term in Section 11(d).

    

    “Notice
      of Conversion”
shall
      have the meaning given such term in Section 6(a).

    

    “Original
      Issue Date”
shall
      mean the date of the first issuance of any shares of the Preferred Stock
      regardless of the number of transfers of any particular shares of Preferred
      Stock and regardless of the number of certificates which may be issued to
      evidence such Preferred Stock.

    

    “Optional
      Redemption”
shall
      have the meaning set forth in Section 8(b).

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    “Optional
      Redemption Amount”
shall
      mean the sum of (i) 100% of the aggregate Stated Value then outstanding, (ii)
      accrued but unpaid dividends and (iii) all liquidated damages and other amounts
      due in respect of the Preferred Stock.

    

    “Optional
      Redemption Date”
shall
      have the meaning set forth in Section 8(b).

    

    “Optional
      Redemption Notice”
shall
      have the meaning set forth in Section 8(b).

    

    “Optional
      Redemption Notice Date”
shall
      have the meaning set forth in Section 8(b).

    

    “Permitted
      Indebtedness”
      shall
      mean (a) the
      Indebtedness existing on the Original Issue Date and set forth on Schedule
      3.1(gg)
      attached
      to the Purchase Agreement and (b) lease obligations and purchase money
      Indebtedness of up to $1,000,000, in the aggregate, incurred in connection
      with
      the acquisition of capital assets and lease obligations with respect to newly
      acquired or leased assets.

    

    “Permitted
      Lien”
shall
      mean the individual and collective reference to the following: (a) Liens for
      taxes, assessments and other governmental charges or levies not yet due or
      Liens
      for taxes, assessments and other governmental charges or levies being contested
      in good faith and by appropriate proceedings for which adequate reserves (in
      the
      good faith judgment of the management of the Corporation) have been established
      in accordance with GAAP, (b) Liens imposed by law which were incurred in the
      ordinary course of business, such as carriers’, warehousemen’s and mechanics’
Liens, statutory landlords’ Liens, and other similar Liens arising in the
      ordinary course of business, and (x) which do not individually or in the
      aggregate materially detract from the value of such property or assets or
      materially impair the use thereof in the operation of the business of the
      Corporation and its consolidated Subsidiaries or (y) which are being contested
      in good faith by appropriate proceedings, which proceedings have the effect
      of
      preventing the forfeiture or sale of the property or asset subject to such
      Lien
      and (c) Liens incurred in connection with Permitted Indebtedness under clause
      (b) thereunder provided that such Liens are not secured by assets of the
      Corporation or its Subsidiaries other than the assets so acquired or
      leased.

     

    “Person”
means
      a
      corporation, an association, a partnership, an organization, a business, an
      individual, a government or political subdivision thereof or a governmental
      agency.

    

    “Preferred
      Stock”
shall
      have the meaning given such term in Section 2.

    

    “Purchase
      Agreement”
means
      the Securities Purchase Agreement, dated as of the Original Issue Date, to
      which
      the Corporation and the original Holders are parties, as amended, modified
      or
      supplemented from time to time in accordance with its terms.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    “Registration
      Rights Agreement”
means
      the Registration Rights Agreement, dated as of the date of the Purchase
      Agreement, to which the Corporation and the original Holder are parties, as
      amended, modified or supplemented from time to time in accordance with its
      terms.

    

    “Securities
      Act”
means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder.

    

    “Share
      Delivery Date”
shall
      have the meaning given such term in Section 6(e).

    

    “Stated
      Value”
shall
      have the meaning given such term in Section 2.

    

    “Subscription
      Amount”
shall
      mean, as to each Purchaser, the amount to be paid for the Preferred Stock
      purchased pursuant to the Purchase Agreement as specified below such Purchaser’s
      name on the signature page of the Purchase Agreement and next to the heading
      “Subscription Amount”, in United States Dollars and in immediately available
      funds.

    

    “Subsidiary”
shall
      have the meaning given to such term in the Purchase Agreement.

    

    “Three
      Year Redemption”
shall
      have the meaning set forth in Section 8(c).

    

    “Three
      Year Redemption Date”
shall
      have the meaning set forth in Section 8(c).

    

    “Three
      Year Redemption Amount”
shall
      mean the sum of (i) 100% of the aggregate Stated Value then outstanding, (ii)
      accrued but unpaid dividends and (iii) all liquidated damages and other amounts
      due in respect of the Preferred Stock 

     

    “Threshold
      Period”
shall
      have the meaning set forth in Section 8(a). 

    

    “Trading
      Day”
means
      a
      day on which the Common Stock is traded on a Trading Market.

    

    “Trading
      Market”
means
      the following markets or exchanges on which the Common Stock is listed or quoted
      for trading on the date in question: the Nasdaq SmallCap Market, the American
      Stock Exchange, the New York Stock Exchange, the Nasdaq National Market or
      the
      OTC Bulletin Board.

    

    “Transaction
      Documents”
shall
      have the meaning set forth in the Purchase Agreement.

    

    “Triggering
      Event”
shall
      have the meaning set forth in Section 9(a).

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    “Triggering
      Redemption Amount”
for
      each share of Preferred Stock means the sum of (i) the greater of (A) 130%
      of
      the Stated Value and (B) the product of (a) the VWAP on the Trading Day
      immediately preceding the date of the Triggering Event and (b) the Stated Value
      divided by the then Conversion Price, (ii) all accrued but unpaid dividends
      thereon and (iii) all liquidated damages and other amounts due in respect of
      the
      Preferred Stock.

    

    “Triggering
      Redemption Payment Date”
shall
      have the meaning set forth in Section 9(b).

    

    “VWAP”
means,
      for any date, the price determined by the first of the following clauses that
      applies: (a) if the Common Stock is then listed or quoted on a Trading Market,
      the daily volume weighted average price of the Common Stock for such date (or
      the nearest preceding date) on the Trading Market on which the Common Stock
      is
      then listed or quoted as reported by Bloomberg Financial L.P. (based on a
      Trading Day from 9:30 a.m. Eastern Time to 4:02 p.m. Eastern Time); (b) if
      the
      Common Stock is not then listed or quoted on the OTC Bulletin Board and if
      prices for the Common Stock are then reported in the “Pink Sheets” published by
      the Pink Sheets, LLC (or a similar organization or agency succeeding to its
      functions of reporting prices), the most recent bid price per share of the
      Common Stock so reported; or (c) in all other cases, the fair market value
      of a
      share of Common Stock as determined by an independent appraiser selected in
      good
      faith by the Purchasers and reasonably acceptable to the
      Corporation.

    

    Section
      2.  Determination,
      Amount and Par Value.
      The
      series of preferred stock shall be designated as its Series A 9% Convertible
      Preferred Stock (the “Preferred
      Stock”)
      and
      the number of shares so designated shall be up to 1,575 (which shall not be
      subject to increase without the consent of all of the holders of the Preferred
      Stock (each, a “Holder”
and
      collectively, the “Holders”)).
      Each
      share of Preferred Stock shall have a par value of $.001 per share and a stated
      value equal to $1,000 subject to increase set forth in Section 3(a) below (the
      “Stated
      Value”).
      Capitalized terms not otherwise defined herein shall have the meaning given
      such
      terms in Section 1 hereof.

     

    Section
      3.   Dividends.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    a)
       Dividends
      in Cash or in Kind.
      Holders
      shall be entitled to receive and the Corporation shall pay, cumulative dividends
      at the rate per share (as a percentage of the Stated Value per share) of 9%
      per
      annum (subject to increase pursuant to Section 9(b)),
      payable
      semiannually on January 1 and July 1, beginning with the first such date after
      the Original Issue Date and on any Conversion Date (except that, if such date
      is
      not a Trading Day, the payment date shall be the next succeeding Trading Day)
      (“Dividend
      Payment Date”)
      in
      cash or duly authorized, fully paid and non-assessable shares of Common Stock
      as
      set forth in this Section 3(a), or a combination thereof (the amount to be
      paid
      in share of Common Stock, the “Dividend
      Share Amount”).
      The
      form of dividend payments to each Holder shall be made in the following order:
      (i) if funds are legally available for the payment of dividends and the Equity
      Conditions have not been met during the 10 Trading Days immediately prior to
      the
      applicable Dividend Payment Date, in cash only, (ii) if funds are legally
      available for the payment of dividends and the Equity Conditions have been
      met
      during the 10 consecutive Trading Days immediately prior to the applicable
      Dividend Payment Date, at the sole election of the Corporation, in cash or
      shares of Common Stock which shall be valued solely for such purpose at 90%
      of
      the average of the VWAPs for the 10 consecutive Trading Days ending on the
      Trading Day that is immediately prior to the Dividend Payment Date; (iii) if
      funds are not legally available for the payment of dividends and the Equity
      Conditions have been met during the 10 consecutive Trading Days immediately
      prior to the applicable Dividend Payment Date, in shares of Common Stock which
      shall be valued at 90% of the average of the VWAPs for the 10 consecutive
      Trading Days ending on the Trading Day that is immediately prior to the Dividend
      Payment Date; (iv) if funds are not legally available for the payment of
      dividends and the Equity Conditions relating to registration have been waived
      by
      such Holder, as to such Holder only, in unregistered shares of Common Stock
      which shall be valued at 90% of the average of the VWAPs for the 10 consecutive
      Trading Days ending on the Trading Day that is immediately prior to the Dividend
      Payment Date; and (v) if funds are not legally available for the payment of
      dividends and the Equity Conditions have not been met during the 10 Trading
      Days
      immediately prior to the applicable Dividend Payment Date, then, at the election
      of such Holder, such dividends shall accrue to the next Dividend Payment Date
      or
      shall be accreted to, and increase, the outstanding Stated Value. The Holders
      shall have the same rights and remedies with respect to the delivery of any
      such
      shares as if such shares were being issued pursuant to Section 6. On the Closing
      Date the Corporation shall have notified the Holders whether or not it may
      lawfully pay cash dividends. The Corporation shall promptly notify the Holders
      at any time the Corporation shall become able or unable, as the case may be,
      to
      lawfully pay cash dividends. If at any time the Corporation has the right to
      pay
      dividends in cash or Common Stock, the Corporation must provide the Holder
      with
      at least 20 Trading Days’ notice of its election to pay a regularly scheduled
      dividend in Common Stock. Dividends on the Preferred Stock shall be calculated
      on the basis of a 360-day year, shall accrue daily commencing on the Original
      Issue Date, and shall be deemed to accrue from such date whether or not earned
      or declared and whether or not there are profits, surplus or other funds of
      the
      Corporation legally available for the payment of dividends. Except as otherwise
      provided herein, if at any time the Corporation pays dividends partially in
      cash
      and partially in shares, then such payment shall be distributed ratably among
      the Holders based upon the number of shares of Preferred Stock held by each
      Holder. Any dividends, whether paid in cash or shares, that are not paid within
      three Trading Days following a Dividend Payment Date shall continue to accrue
      and shall entail a late fee, which must be paid in cash, at the rate of 18%
      per
      annum or the lesser rate permitted by applicable law (such fees to accrue daily,
      from the Dividend Payment Date through and including the date of payment).
      At
      any time the Corporation delivers a notice to the Holders of its election to
      pay
      the dividends in shares of Common Stock, the Corporation shall file a prospectus
      supplement pursuant to Rule 424 disclosing such election.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    b)
       So
      long
      as any Preferred Stock shall remain outstanding, neither the Corporation nor
      any
      Subsidiary thereof shall redeem, purchase or otherwise acquire directly or
      indirectly any Junior Securities. So long as any Preferred Stock shall remain
      outstanding, neither the Corporation nor any Subsidiary thereof shall directly
      or indirectly pay or declare any dividend or make any distribution (other than
      a
      dividend or distribution described in Section 6 or dividends due and paid in
      the
      ordinary course on preferred stock of the Corporation at such times when the
      Corporation is in compliance with its payment and other obligations hereunder)
      upon, nor shall any distribution be made in respect of, any Junior Securities
      so
      long as any dividends due on the Preferred Stock remain unpaid, nor shall any
      monies be set aside for or applied to the purchase or redemption (through a
      sinking fund or otherwise) of any Junior Securities or shares pari passu with
      the Preferred Stock.

    

    c)
       The
      Corporation acknowledges and agrees that the capital of the Corporation in
      respect of the Preferred Stock and any future issuances of the Corporation’s
      capital stock shall be equal to the aggregate par value of such Preferred Stock
      or capital stock, as the case may be, and that, on or after the date of the
      Purchase Agreement, it shall not increase the capital of the Corporation with
      respect to any shares of the Corporation’s capital stock issued and outstanding
      on such date. The
      Corporation also acknowledges and agrees that it shall not create any special
      reserves under Section [____ of the California General Corporation Law without
      the prior written consent of each Holder.

    

    Section
      4.  Voting
      Rights.
      Except
      as otherwise provided herein and as otherwise required by law, the Preferred
      Stock shall have no voting rights. However, so long as any shares of Preferred
      Stock are outstanding, the Corporation shall not, without the affirmative vote
      of 75% of the Holders of the shares of the Preferred Stock then outstanding,
      (a)
      alter or change adversely the powers, preferences or rights given to the
      Preferred Stock or alter or amend this Certificate of Determination, (b)
      authorize or create any class of stock ranking as to dividends, redemption
      or
      distribution of assets upon a Liquidation (as defined in Section 5) senior
      to or
      otherwise pari passu with the Preferred Stock, (c) amend its certificate of
      incorporation or other charter documents so as to affect adversely any rights
      of
      the Holders, (d) increase the authorized number of shares of Preferred Stock,
      or
      (e) enter into any agreement with respect to the foregoing.

     

    Section
      5.  Liquidation.
      Upon
      any liquidation, dissolution or winding-up of the Corporation, whether voluntary
      or involuntary (a “Liquidation”),
      the
      Holders shall be entitled to receive out of the assets of the Corporation,
      whether such assets are capital or surplus, for each share of Preferred Stock
      an
      amount equal to the Stated Value per share plus any accrued and unpaid dividends
      thereon and any other fees or liquidated damages owing thereon before any
      distribution or payment shall be made to the holders of any Junior Securities,
      and if the assets of the Corporation shall be insufficient to pay in full such
      amounts, then the entire assets to be distributed to the Holders shall be
      distributed among the Holders ratably in accordance with the respective amounts
      that would be payable on such shares if all amounts payable thereon were paid
      in
      full. A Fundamental Transaction or Change of Control Transaction shall not
      be
      treated as a Liquidation. The Corporation shall mail written notice of any
      such
      Liquidation, not less than 45 days prior to the payment date stated therein,
      to
      each record Holder.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    Section
      6.  Conversion.

    

    a)
       Conversions
      at Option of Holder.
      Each
      share of Preferred Stock shall be convertible into that number of shares of
      Common Stock (subject to the limitations set forth in Section 6(c)) determined
      by dividing the Stated Value of such share of Preferred Stock by the Conversion
      Price, at the option of the Holder, at any time and from time to time from
      and
      after the Original Issue Date. Holders shall effect conversions by providing
      the
      Corporation with the form of conversion notice attached hereto as Annex
      A
      (a
“Notice
      of Conversion”).
      Each
      Notice of Conversion shall specify the number of shares of Preferred Stock
      to be
      converted, the number of shares of Preferred Stock owned prior to the conversion
      at issue, the number of shares of Preferred Stock owned subsequent to the
      conversion at issue and the date on which such conversion is to be effected,
      which date may not be prior to the date the Holder delivers such Notice of
      Conversion to the Corporation by facsimile (the “Conversion
      Date”).
      If no
      Conversion Date is specified in a Notice of Conversion, the Conversion Date
      shall be the date that such Notice of Conversion to the Corporation is deemed
      delivered hereunder. The calculations and entries set forth in the Notice of
      Conversion shall control in the absence of manifest or mathematical error.
      To
      effect conversions, as the case may be, of shares of Preferred Stock, a Holder
      shall not be required to surrender the certificate(s) representing such shares
      of Preferred Stock to the Corporation unless all of the shares of Preferred
      Stock represented thereby are so converted, in which case the Holder shall
      deliver the certificate representing such share of Preferred Stock promptly
      following the Conversion Date at issue. Shares of Preferred Stock converted
      into
      Common Stock or redeemed in accordance with the terms hereof shall be canceled
      and may not be reissued.

    

    b)
       Conversion
      Price.
      The
      conversion price for the Preferred Stock shall equal $0.21
      the
      “Conversion
      Price”),
      subject to adjustment herein.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    c)
       Beneficial
      Ownership Limitation. The
      Corporation shall not effect any conversion of the Preferred Stock, and a Holder
      shall not have the right to convert any portion of the Preferred Stock to the
      extent that after giving effect to such conversion, such Holder (together with
      such Holder’s affiliates, and any other person or entity acting as a group
      together with such Holder or any of such Holder’s affiliates), as set forth on
      the applicable Notice of Conversion, would beneficially own in excess of 4.99%
      of the number of shares of the Common Stock outstanding immediately after giving
      effect to such conversion.  For purposes of the foregoing sentence, the
      number of shares of Common Stock beneficially owned by such Holder and its
      affiliates shall include the number of shares of Common Stock issuable upon
      conversion of the Preferred Stock with respect to which the determination of
      such sentence is being made, but shall exclude the number of shares of Common
      Stock which would be issuable upon (A) conversion of the remaining, nonconverted
      Stated Value of Preferred Stock beneficially owned by such Holder or any of
      its
      affiliates and (B) exercise or conversion of the unexercised or nonconverted
      portion of any other securities of the Corporation (including the Warrants)
      subject to a limitation on conversion or exercise analogous to the limitation
      contained herein beneficially owned by such Holder or any of its
      affiliates.  Except as set forth in the preceding sentence, for purposes of
      this Section 6(c), beneficial ownership shall be calculated in accordance with
      Section 13(d) of the Exchange Act and the rules and regulations promulgated
      thereunder. To the extent that the limitation contained in this Section 6(c)
      applies, the determination of whether the Preferred Stock is convertible (in
      relation to other securities owned by such Holder together with any affiliates)
      and of which shares of Preferred Stock is convertible shall be in the sole
      discretion of such Holder, and the submission of a Notice of Conversion shall
      be
      deemed to be such Holder’s determination of whether the shares of Preferred
      Stock may be converted (in relation to other securities owned by such Holder)
      and which shares of the Preferred Stock is convertible, in each case subject
      to
      such aggregate percentage limitations. To ensure compliance with this
      restriction, each Holder will be deemed to represent to the Corporation each
      time it delivers a Notice of Conversion that such Notice of Conversion has
      not
      violated the restrictions set forth in this paragraph and the Corporation shall
      have no obligation to verify or confirm the accuracy of such determination.
      In
      addition, a determination as to any group status as contemplated above shall
      be
      determined in accordance with Section 13(d) of the Exchange Act and the rules
      and regulations promulgated thereunder. For
      purposes of this Section 6(c), in determining the number of outstanding shares
      of Common Stock, a Holder may rely on the number of outstanding shares of Common
      Stock as reflected in the most recent of the following: (A) the Corporation’s
      most recent Form 10-QSB or Form 10-KSB, as the case may be, (B) a more recent
      public announcement by the Corporation or (C) any other notice by the
      Corporation or the Corporation’s transfer agent setting forth the number of
      shares of Common Stock outstanding.  Upon the written or oral request of a
      Holder, the Corporation shall within two Trading Days confirm orally and in
      writing to such Holder the number of shares of Common Stock then
      outstanding.  In any case, the number of outstanding shares of Common Stock
      shall be determined after giving effect to the conversion or exercise of
      securities of the Corporation, including the Preferred Stock, by such Holder
      or
      its affiliates since the date as of which such number of outstanding shares
      of
      Common Stock was reported. The provisions of this Section 6(c) may be waived
      by
      such Holder, at the election of such Holder, upon not less than 61 days’ prior
      notice to the Corporation, and the provisions of this Section 6(c) shall
      continue to apply until such 61st day (or such later date, as determined by
      such
      Holder, as may be specified in such notice of waiver). The
      provisions of this paragraph shall be implemented in a manner otherwise than
      in
      strict conformity with the terms of this Section 6(c) to correct this paragraph
      (or any portion hereof) which may be defective or inconsistent with the intended
      4.99% beneficial ownership limitation herein contained or to make changes or
      supplements necessary or desirable to properly give effect to such 4.99%
      limitation. The limitations contained in this paragraph shall apply to a
      successor holder of Preferred Stock.

    

    d)
       [RESERVED].
      

     

    e)
       Mechanics
      of Conversion

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    i.
       Delivery
      of Certificate Upon Conversion.
      Not
      later than three Trading Days after each Conversion Date (the “Share
      Delivery Date”),
      the
      Corporation shall deliver or cause to be delivered to the Holder (A) a
      certificate or certificates which, after the Effective Date, shall be free
      of
      restrictive legends and trading restrictions (other than those required by
      the
      Purchase Agreement) representing the number of shares of Common Stock being
      acquired upon the conversion of shares of Preferred Stock, and (B) a bank check
      in the amount of accrued and unpaid dividends (if the Corporation has elected
      or
      is required to pay accrued dividends in cash). After the Effective Date, the
      Corporation shall, upon request of the Holder, deliver any certificate or
      certificates required to be delivered by the Corporation under this Section
      electronically through the Depository Trust Corporation or another established
      clearing corporation performing similar functions. If in the case of any Notice
      of Conversion such certificate or certificates are not delivered to or as
      directed by the applicable Holder by the third Trading Day after the Conversion
      Date, the Holder shall be entitled to elect by written notice to the Corporation
      at any time on or before its receipt of such certificate or certificates
      thereafter, to rescind such conversion, in which event the Corporation shall
      immediately return the certificates representing the shares of Preferred Stock
      tendered for conversion.

     

    ii.
       Obligation
      Absolute; Partial Liquidated Damages.
      The
      Corporation’s obligations to issue and deliver the Conversion Shares upon
      conversion of Preferred Stock in accordance with the terms hereof are absolute
      and unconditional, irrespective of any action or inaction by the Holder to
      enforce the same, any waiver or consent with respect to any provision hereof,
      the recovery of any judgment against any Person or any action to enforce the
      same, or any setoff, counterclaim, recoupment, limitation or termination, or
      any
      breach or alleged breach by the Holder or any other Person of any obligation
      to
      the Corporation or any violation or alleged violation of law by the Holder
      or
      any other person, and irrespective of any other circumstance which might
      otherwise limit such obligation of the Corporation to the Holder in connection
      with the issuance of such Conversion Shares. In the event a Holder shall elect
      to convert any or all of the Stated Value of its Preferred Stock, the
      Corporation may not refuse conversion based on any claim that such Holder or
      any
      one associated or affiliated with the Holder of has been engaged in any
      violation of law, agreement or for any other reason, unless, an injunction
      from
      a court, on notice, restraining and or enjoining conversion of all or part
      of
      this Preferred Stock shall have been sought and obtained and the Corporation
      posts a surety bond for the benefit of the Holder in the amount of 150% of
      the
      Stated Value of Preferred Stock outstanding, which is subject to the injunction,
      which bond shall remain in effect until the completion of arbitration/litigation
      of the dispute and the proceeds of which shall be payable to such Holder to
      the
      extent it obtains judgment. In the absence of an injunction precluding the
      same,
      the Corporation shall issue Conversion Shares or, if applicable, cash, upon
      a
      properly noticed conversion. If the Corporation fails to deliver to the Holder
      such certificate or certificates pursuant to Section 6(e)(i) within two Trading
      Days of the Share Delivery Date applicable to such conversion, the Corporation
      shall pay to such Holder, in cash, as liquidated damages and not as a penalty,
      for each $5,000 of Stated Value of Preferred Stock being converted, $50 per
      Trading Day (increasing to $100 per Trading Day after 3 Trading Days and
      increasing to $200 per Trading Day six Trading Days after such damages begin
      to
      accrue) for each Trading Day after the Share Delivery Date until such
      certificates are delivered. Nothing herein shall limit a Holder’s right to
      pursue actual damages for the Corporation’s failure to deliver certificates
      representing shares of Common Stock upon conversion within the period specified
      herein and such Holder shall have the right to pursue all remedies available
      to
      it hereunder, at law or in equity including, without limitation, a decree of
      specific performance and/or injunctive relief.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    iii.
       Compensation
      for Buy-In on Failure to Timely Deliver Certificates Upon
      Conversion.
      If the
      Corporation fails to deliver to the Holder such certificate or certificates
      pursuant to Section 6(e)(i) by a Share Delivery Date, and if after such Share
      Delivery Date the Holder purchases (in an open market transaction or otherwise)
      Common Stock to deliver in satisfaction of a sale by such Holder of the
      Conversion Shares which the Holder was entitled to receive upon the conversion
      relating to such Share Delivery Date (a “Buy-In”),
      then
      the Corporation shall pay in cash to the Holder the amount by which (x) the
      Holder’s total purchase price (including brokerage commissions, if any) for the
      Common Stock so purchased exceeds (y) the product of (1) the aggregate number
      of
      shares of Common Stock that such Holder was entitled to receive from the
      conversion at issue multiplied by (2) the price at which the sell order giving
      rise to such purchase obligation was executed. For example, if the Holder
      purchases Common Stock having a total purchase price of $11,000 to cover a
      Buy-In with respect to an attempted conversion of shares of Preferred Stock
      with
      respect to which the aggregate sale price giving rise to such purchase
      obligation is $10,000, under clause (A) of the immediately preceding sentence
      the Corporation shall be required to pay the Holder $1,000. The Holder shall
      provide the Corporation written notice indicating the amounts payable to the
      Holder in respect of the Buy-In, together with applicable confirmations and
      other evidence reasonably requested by the Corporation. Nothing herein shall
      limit a Holder’s right to pursue any other remedies available to it hereunder,
      at law or in equity including, without limitation, a decree of specific
      performance and/or injunctive relief with respect to the Corporation’s failure
      to timely deliver certificates representing shares of Common Stock upon
      conversion of the shares of Preferred Stock as required pursuant to the terms
      hereof.

     

    iv.
       Reservation
      of Shares Issuable Upon Conversion.
      The
      Corporation covenants that it will at all times reserve and keep available
      out
      of its authorized and unissued shares of Common Stock solely for the purpose
      of
      issuance upon conversion of the Preferred Stock and payment of dividends on
      the
      Preferred Stock, each as herein provided, free from preemptive rights or any
      other actual contingent purchase rights of persons other than the Holder (and
      the other Holders of the Preferred Stock), not less than such number of shares
      of the Common Stock as shall (subject to any additional requirements of the
      Corporation as to reservation of such shares set forth in the Purchase
      Agreement) be issuable (taking into account the adjustments and restrictions
      of
      Section 7) upon the conversion of all outstanding shares of Preferred Stock.
      The
      Corporation covenants that all shares of Common Stock that shall be so issuable
      shall, upon issue, be duly and validly authorized, issued and fully paid,
      nonassessable and, if the Conversion Shares Registration Statement is then
      effective under the Securities Act, registered for public sale in accordance
      with such Conversion Shares Registration Statement.

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    v.
       Fractional
      Shares.
      Upon a
      conversion hereunder, the Corporation shall not be required to issue stock
      certificates representing fractions of shares of the Common Stock, but may
      if
      otherwise permitted, make a cash payment in respect of any final fraction of
      a
      share based on the VWAP at such time. If the Corporation elects not, or is
      unable, to make such a cash payment, the Holder shall be entitled to receive,
      in
      lieu of the final fraction of a share, one whole share of Common
      Stock.

    

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

    

    Section
      7.  Certain
      Adjustments.

    

    a) 
       Stock
      Dividends and Stock Splits.
      If the
      Corporation, at any time while this Preferred Stock is outstanding: (A) pays
      a
      stock dividend or otherwise make a distribution or distributions on shares
      of
      its Common Stock or any other equity or equity equivalent securities payable
      in
      shares of Common Stock (which, for avoidance of doubt, shall not include any
      shares of Common Stock issued by the Corporation pursuant to this Preferred
      Sock), (B) subdivides outstanding shares of Common Stock into a larger number
      of
      shares, (C) combines (including by way of reverse stock split) outstanding
      shares of Common Stock into a smaller number of shares, or (D) issues by
      reclassification of shares of the Common Stock any shares of capital stock
      of
      the Corporation, then the Conversion Price shall be multiplied by a fraction
      of
      which the numerator shall be the number of shares of Common Stock (excluding
      treasury shares, if any) outstanding immediately before such event and of which
      the denominator shall be the number of shares of Common Stock outstanding
      immediately after such event. Any adjustment made pursuant to this Section
      7(a)
      shall become effective immediately after the record date for the determination
      of stockholders entitled to receive such dividend or distribution and shall
      become effective immediately after the effective date in the case of a
      subdivision, combination or re-classification.

    
      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

    

    

    b) 
       Subsequent
      Equity Sales.
      If the
      Corporation or any Subsidiary thereof, as applicable, at any time while this
      Preferred Stock is outstanding, shall offer, sell, grant any option to purchase
      or offer, sell or grant any right to reprice its securities, or otherwise
      dispose of or issue (or announce any offer, sale, grant or any option to
      purchase or other disposition) any Common Stock or Common Stock Equivalents
      entitling any Person to acquire shares of Common Stock, at an effective price
      per share less than the then Conversion Price (such lower price, the
“Base
      Conversion Price”
and
      such issuances collectively, a “Dilutive
      Issuance”),
      as
      adjusted hereunder (if the holder of the Common Stock or Common Stock
      Equivalents so issued shall at any time, whether by operation of purchase price
      adjustments, reset provisions, floating conversion, exercise or exchange prices
      or otherwise, or due to warrants, options or rights per share which is issued
      in
      connection with such issuance, be entitled to receive shares of Common Stock
      at
      an effective price per share which is less than the Conversion Price, such
      issuance shall be deemed to have occurred for less than the Conversion Price
      on
      such date of the Dilutive Issuance), then the Conversion Price shall be reduced
      to equal the Base Conversion Price. Notwithstanding
      the foregoing, no adjustment will be made under this Section 7(b) in respect
      of
      an Exempt Issuance.
      The
      Corporation shall notify the Holder in writing, no later than the Business
      Day
      following the issuance of any Common Stock or Common Stock Equivalents subject
      to this section, indicating therein the applicable issuance price, or of
      applicable reset price, exchange price, conversion price and other pricing
      terms
      (such notice the “Dilutive
      Issuance Notice”).
      For
      purposes of clarification, whether or not the Corporation provides a Dilutive
      Issuance Notice pursuant to this Section 7(b), upon the occurrence of any
      Dilutive Issuance, after the date of such Dilutive Issuance the Holder is
      entitled to receive a number of Conversion Shares based upon the Base Conversion
      Price regardless of whether the Holder accurately refers to the Base Conversion
      Price in the Notice of Conversion.

     

    c) 
       Subsequent
      Rights Offerings.
      If the
      Corporation, at any time while the Preferred Stock is outstanding, shall issue
      rights, options or warrants to all holders of Common Stock (and not to Holders)
      entitling them to subscribe for or purchase shares of Common Stock at a price
      per share less than the VWAP at the record date mentioned below, then the
      Conversion Price shall be multiplied by a fraction, of which the denominator
      shall be the number of shares of the Common Stock Outstanding on the date of
      issuance of such rights or warrants plus the number of additional shares of
      Common Stock offered for subscription or purchase, and of which the numerator
      shall be the number of shares of the Common Stock Outstanding on the date of
      issuance of such rights or warrants plus the number of shares which the
      aggregate offering price of the total number of shares so offered (assuming
      receipt by the Corporation in full of all consideration payable upon exercise
      of
      such rights, options or warrants) would purchase at such VWAP. Such adjustment
      shall be made whenever such rights or warrants are issued, and shall become
      effective immediately after the record date for the determination of
      stockholders entitled to receive such rights, options or
      warrants.

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    d)
       Pro
      Rata Distributions.
      If the
      Corporation, at any time while Preferred Stock is outstanding, shall distribute
      to all holders of Common Stock (and not to Holders) evidences of its
      indebtedness or assets (including cash and cash dividends) or rights or warrants
      to subscribe for or purchase any security, then in each such case the Conversion
      Price shall be adjusted by multiplying such Conversion Price in effect
      immediately prior to the record date fixed for determination of stockholders
      entitled to receive such distribution by a fraction of which the denominator
      shall be the VWAP determined as of the record date mentioned above, and of
      which
      the numerator shall be such VWAP on such record date less the then fair market
      value at such record date of the portion of such assets or evidence of
      indebtedness so distributed applicable to one outstanding share of the Common
      Stock as determined by the Board of Directors in good faith. In either case
      the
      adjustments shall be described in a statement provided to the Holder of the
      portion of assets or evidences of indebtedness so distributed or such
      subscription rights applicable to one share of Common Stock. Such adjustment
      shall be made whenever any such distribution is made and shall become effective
      immediately after the record date mentioned above.

    

    e)
       Fundamental
      Transaction.
      If, at
      any time while this Preferred Stock is outstanding, (A) the Corporation effects
      any merger or consolidation of the Corporation with or into another Person,
      (B)
      the Corporation effects any sale of all or substantially all of its assets
      in
      one or a series of related transactions, (C) any tender offer or exchange offer
      (whether by the Corporation or another Person) is completed pursuant to which
      holders of Common Stock are permitted to tender or exchange their shares for
      other securities, cash or property, or (D) the Corporation effects any
      reclassification of the Common Stock or any compulsory share exchange pursuant
      to which the Common Stock is effectively converted into or exchanged for other
      securities, cash or property (in any such case, a “Fundamental
      Transaction”),
      then
      upon any subsequent conversion of this Preferred Stock, the Holder shall have
      the right to receive, for each Conversion Share that would have been issuable
      upon such conversion immediately prior to the occurrence of such Fundamental
      Transaction, the same kind and amount of securities, cash or property as it
      would have been entitled to receive upon the occurrence of such Fundamental
      Transaction if it had been, immediately prior to such Fundamental Transaction,
      the holder of one share of Common Stock (the “Alternate
      Consideration”).
      For
      purposes of any such conversion, the determination of the Conversion Price
      shall
      be appropriately adjusted to apply to such Alternate Consideration based on
      the
      amount of Alternate Consideration issuable in respect of one share of Common
      Stock in such Fundamental Transaction, and the Corporation shall apportion
      the
      Conversion Price among the Alternate Consideration in a reasonable manner
      reflecting the relative value of any different components of the Alternate
      Consideration. If holders of Common Stock are given any choice as to the
      securities, cash or property to be received in a Fundamental Transaction, then
      the Holder shall be given the same choice as to the Alternate Consideration
      it
      receives upon any conversion of this Preferred Stock following such Fundamental
      Transaction. To the extent necessary to effectuate the foregoing provisions,
      any
      successor to the Corporation or surviving entity in such Fundamental Transaction
      shall file a new Certificate of Determination with the same terms and conditions
      and issue to the Holder new preferred stock consistent with the foregoing
      provisions and evidencing the Holder’s right to convert such preferred stock
      into Alternate Consideration. The terms of any agreement pursuant to which
      a
      Fundamental Transaction is effected shall include terms requiring any such
      successor or surviving entity to comply with the provisions of this Section
      7(e)
      and insuring that this Preferred Stock (or any such replacement security) will
      be similarly adjusted upon any subsequent transaction analogous to a Fundamental
      Transaction.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

    f)
       Calculations.
      All
      calculations under this Section 7 shall be made to the nearest cent or the
      nearest 1/100th of a share, as the case may be. For purposes of this Section
      7,
      the number of shares of Common Stock deemed to be issued and outstanding as
      of a
      given date shall be the sum of the number of shares of Common Stock (excluding
      treasury shares, if any) issued and outstanding.

    

    g)
       Notice
      to Holders.

    

    i.  Adjustment
      to Conversion Price.
      Whenever the Conversion Price is adjusted pursuant to any of this Section 7,
      the
      Corporation shall promptly mail to each Holder a notice setting forth the
      Conversion Price after such adjustment and setting forth a brief statement
      of
      the facts requiring such adjustment. 

     

    ii.  Notice
      to Allow Conversion by Holder.
      If (A)
      the Corporation shall declare a dividend (or any other distribution) on the
      Common Stock; (B) the Corporation shall declare a special nonrecurring cash
      dividend on or a redemption of the Common Stock; (C) the Corporation shall
      authorize the granting to all holders of the Common Stock rights or warrants
      to
      subscribe for or purchase any shares of capital stock of any class or of any
      rights; (D) the approval of any stockholders of the Corporation shall be
      required in connection with any reclassification of the Common Stock, any
      consolidation or merger to which the Corporation is a party, any sale or
      transfer of all or substantially all of the assets of the Corporation, of any
      compulsory share exchange whereby the Common Stock is converted into other
      securities, cash or property; (E) the
      Corporation shall authorize the voluntary or involuntary dissolution,
      liquidation or winding up of the affairs of the Corporation; then, in each
      case,
      the Corporation shall cause to be filed at each office or agency maintained
      for
      the purpose of conversion of this Preferred Stock, and shall cause to be
mailed
      to
      the Holder at its last address as its shall appear upon the stock
      books of
      the
      Corporation, at least 20 calendar days prior to the applicable record or
      effective date hereinafter specified, a notice stating (x)
      the
      date on which a record is to be taken for the purpose of such dividend,
      distribution, redemption, rights or warrants, or if a record is not to be taken,
      the date as of which the holders of the Common Stock of record to be entitled
      to
      such dividend, distributions, redemption, rights or warrants are to be
      determined or (y) the date on which such reclassification, consolidation,
      merger, sale, transfer or share exchange is expected to become effective or
      close, and the date as of which it is expected that holders of the Common Stock
      of record shall be entitled to exchange their shares of the Common Stock for
      securities, cash or other property deliverable upon such reclassification,
      consolidation, merger, sale, transfer or share exchange; provided,
      that
      the failure to mail such notice or any defect therein or in the mailing thereof
      shall not affect the validity of the corporate action required to be specified
      in such notice. The Holder is entitled to convert the Conversion Amount of
      this
      Preferred Stock (or any part hereof) during the 20-day period commencing the
      date of such notice to the effective date of the event triggering such notice.
      

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    Section
      8.  Forced
      Conversion and Optional and Three Year Redemption.

    

    a)
         Forced
      Conversion.
      Notwithstanding anything herein to the contrary, if after the Effective Date
      (i)
      the VWAP for each of any 10 consecutive Trading Days (“Threshold
      Period”),
      which
      10 consecutive Trading Day period shall have commenced only after the Effective
      Date, exceeds 300% of the then effective Conversion Price and (ii) the daily
      volume for any such Threshold Period, which Threshold Period shall have
      commenced only after the Effective Date, exceeds 250,000 shares of Common Stock
      per Trading Day, the Corporation may, within 1 Trading Day after any such
      Threshold Period, deliver a written notice to all Holders (a “Forced
      Conversion Notice”
and
      the
      date such notice is received by the Holders, the “Forced
      Conversion Notice Date”)
      to
      cause each Holder to convert up to a Stated Value of its Preferred Stock equal
      to all or part of such Holder’s pro-rata portion of the Forced Conversion
      Amount, it being understood that the “Conversion
      Date”
for
      purposes of Section 6 shall be deemed to occur on the third Trading Day
      following the Forced Conversion Notice Date (such third Trading Day being
      referred to as the “Forced
      Conversion Date”).
      As to
      each Holder, a Forced Conversion Notice shall contain the aggregate Forced
      Conversion Amount, such Holder’s pro-rata portion of such amount, confirmation
      of the satisfaction of the conditions set forth above for the Threshold Period
      and the Equity Conditions, and the portion of such Holder’s pro-rata portion of
      the Forced Conversion Amount to be converted on each Forced Conversion Date.
      The
      Corporation may not deliver a Forced Conversion Notice, and any Forced
      Conversion Notice delivered by the Corporation shall not be effective, unless
      all of the Equity Conditions have been met on each Trading Day occurring during
      the Threshold Period through and including the later of each Forced Conversion
      Date and the date that the Conversion Shares issuable pursuant to such
      conversion are delivered to the Holder pursuant to the Forced Conversion Notice.
      Notwithstanding anything herein to the contrary, the Corporation may only
      deliver another Forced Conversion Notice provided that the most recent Forced
      Conversion Notice Date is at least 15 days prior to the new Forced Conversion
      Notice Date. Any Forced Conversion Notices shall be applied ratably to all
      of
      the Holders in proportion to each Holder’s initial purchases of Preferred Stock
      hereunder, provided that any voluntary conversions by a Holder shall be applied
      against such Holder’s pro-rata allocation thereby decreasing the aggregate
      amount forcibly converted hereunder.

     

    
      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

    

     

    b) 
        Optional
      Redemption at Election of the Holder.
      Subject
      to the provisions of this Section 8, at any time after the date hereof, in
      the
      event of a Change of Control Transaction that results in an non-Affiliated
      third
      party acquiring more than 50% of the voting securities of the Corporation in
      one
      transaction or a series of related transactions, in addition to any other rights
      hereunder, the Holder may deliver a notice to the Corporation (an “Optional
      Redemption Notice” and the date such notice is deemed delivered hereunder, the
“Optional Redemption Notice Date”) of its irrevocable election to cause the
      Corporation redeem some or all of the then outstanding Preferred Stock, for
      an
      amount, in cash, or, subject to the conditions set forth below, at the
      Corporation’s option, in shares of registered Common Stock, equal to the
      Optional Redemption Amount on the 20th Trading Day following the Optional
      Redemption Notice Date (such date, the “Optional Redemption Date” and such
      redemption, the “Optional Redemption”). The Corporation shall deliver notice of
      its election to pay the Optional Redemption Amount in shares of Common Stock
      within 1 Trading Day of its receipt of an Optional Redemption Notice. Failure
      to
      so deliver a notice to pay an Option Redemption Amount in shares of Common
      Stock
      within 1 Trading Day shall be deemed an election by the Corporation to pay
      such
      amount in cash. The Optional Redemption Amount is due in full on the Optional
      Redemption Date. If the Corporation elects to pay an Optional Redemption Amount
      in shares of Common Stock, such shares shall based on a conversion price equal
      to the lesser of (i) the then Conversion Price and (ii) 90% of the average
      of
      the VWAPs for the 10 consecutive Trading Days ending on the Trading Day that
      is
      immediately prior to the applicable Optional Redemption Date. The Corporation
      may only elect to pay the Optional Redemption Amount in shares of Common Stock
      if during the period commencing on the Optional Redemption Notice Date through
      to the Optional Redemption Date and through and including the date such shares
      of Common Stock are issued to the Holder, each of the Equity Conditions shall
      have been met. If any of the Equity Conditions shall cease to be satisfied
      at
      any time during the required period, then the Holder may elect to nullify the
      Optional Redemption Notice by notice to the Corporation within 3 Trading Days
      after the first day on which any such Equity Condition has not been met
      (provided that if, by a provision of the Transaction Documents, the Corporation
      is obligated to notify the Holder of the non-existence of an Equity Condition,
      such notice period shall be extended to the third Trading Day after proper
      notice from the Corporation) in which case the Optional Redemption Notice shall
      be null and void, ab initio or require the Corporation to pay such Optional
      Redemption Amount in cash. The Corporation covenants and agrees that it will
      honor all Notices of Conversion tendered from the time of delivery of the
      Optional Redemption Notice through the date all amounts owing thereon are due
      and paid in full.

    

    c) 
       Three
      Year Redemption.
      On the
      third anniversary of the Original Issue Date (the “Three
      Year Redemption Date”),
      the
      Corporation shall redeem all of the then outstanding Preferred Stock, for an
      amount in cash equal to the Three Year Redemption Amount (such redemption,
      the
“Three
      Year Redemption”).
      The
      Corporation covenants and agrees that it will honor all Conversion Notices
      tendered up until such amounts are paid in full.

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    d) 
       Redemption
      Procedure.
      The
      payment of cash pursuant to a Three Year Redemption shall be made on the Three
      Year Redemption Date. If any portion of the cash payment for a Three Year
      Redemption shall not be paid by the Corporation by the respective due date,
      interest shall accrue thereon at the rate of 18% per annum (or the maximum
      rate
      permitted by applicable law, whichever is less) until the such payment, plus
      all
      amounts owing thereon, is paid in full.

    

    Section
      9.  Redemption
      Upon Triggering Events.

     

    a) 
       “Triggering
      Event”
means
      any one or more of the following events (whatever the reason and whether it
      shall be voluntary or involuntary or effected by operation of law or pursuant
      to
      any judgment, decree or order of any court, or any order, rule or regulation
      of
      any administrative or governmental body):

    

    i.   the
      failure of a Conversion Shares Registration Statement to be declared effective
      by the Commission on or prior to the 180th
      day
      after the Original Issue Date;

     

    ii.        
      if,
      during the Effectiveness Period, the effectiveness of the Conversion Shares
      Registration Statement lapses for any reason for more than an aggregate of
      60
      calendar days (which need not be consecutive days) during any 12 month period,
      or the Holder shall not be permitted to resell Registrable Securities under
      the
      Conversion Shares Registration Statement for more than an aggregate of 60
      calendar days (which need not be consecutive days) during any 12 month
      period;

    

    iii.        
      the
      Corporation shall fail to deliver certificates representing Conversion Shares
      issuable upon a conversion hereunder that comply with the provisions hereof
      prior to the fifth Trading Day after such shares are required to be delivered
      hereunder, or the Corporation shall provide written notice to any Holder,
      including by way of public announcement, at any time, of its intention not
      to
      comply with requests for conversion of any shares of Preferred Stock in
      accordance with the terms hereof;

    

    iv.      
      one
      of
      the Events (as defined in the Registration Rights Agreement) described in
      subsections (i), (ii) or (iii) of Section 2(b) of the Registration Rights
      Agreement shall not have been cured to the satisfaction of the Holders prior
      to
      the expiration of 30 days from the Event Date (as defined in the Registration
      Rights Agreement) relating thereto (other than an Event resulting from a failure
      of a Conversion Shares Registration Statement to be declared effective by the
      Commission on or prior to the 180th day after the Original Issue Date, which
      shall be covered by Section 9(a)(i));

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    v.        
      the
      Corporation shall fail for any reason to pay in full the amount of cash due
      pursuant to a Buy-In within five days after notice therefor is delivered
      hereunder or shall fail to pay all amounts owed on account of an Event within
      five days of the date due;

    

    vi.       
      the
      Corporation shall fail to have available a sufficient number of authorized
      and
      unreserved shares of Common Stock to issue to such Holder upon a conversion
      hereunder;

    

    vii.      
      on
      or
      before the 60th
      day
      following the Original Issue Date, the Company shall have failed to amend the
      Company’s certificate or articles of incorporation to increase the number of
      authorized but unissued shares of Common Stock such that at least 130% of the
      Actual Minimum at such time (minus the number of shares of Common Stock
      previously issued pursuant to the Transaction Documents) is reserved from the
      Company’s duly authorized shares of Common Stock;

    

    viii.     
      unless
      specifically addressed elsewhere in this Certificate of Determination as a
      Triggering Event, the Corporation shall fail to observe or perform any other
      covenant, agreement or warranty contained in, or otherwise commit any breach
      of
      the Transaction Documents, and such failure or breach shall not, if subject
      to
      the possibility of a cure by the Corporation, have been remedied within 30
      calendar days after the date on which written notice of such failure or breach
      shall have been given;

    

    ix.         the
      Corporation shall redeem more than a de minimis number of Junior
      Securities;

    

    x.          the
      Corporation shall be party to a Change of Control Transaction; 

    

    xi.        
      there
      shall have occurred a Bankruptcy Event; 

    

    xii.       
      the
      Common Stock shall fail to be listed or quoted for trading on a Trading Market
      for more than five Trading Days, which need not be consecutive Trading Days;
      or

    

    xiii.      
      any
      monetary judgment, writ or similar final process shall be entered or filed
      against the Corporation, any Subsidiary or any of their respective property
      or
      other assets for than $50,000, and shall remain unvacated, unbonded or unstayed
      for a period of 45 calendar days.

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    b)    
      Upon
      the
      occurrence of a Triggering Event, each Holder shall (in addition to all other
      rights it may have hereunder or under applicable law) have the right,
      exercisable at the sole option of such Holder, to require the Corporation to
      redeem all of the Preferred Stock then held by such Holder for a redemption
      price, in cash, equal to the Triggering Redemption Amount. The Triggering
      Redemption Amount shall be due and payable or issuable, as the case may be,
      within five Trading Days of the date on which the notice for the payment
      therefor is provided by a Holder (the “Triggering
      Redemption Payment Date”).
      If
      the Corporation fails to pay the Triggering Redemption Amount hereunder in
      full
      pursuant to this Section on the date such amount is due in accordance with
      this
      Section, the Corporation will pay interest thereon at a rate of 18% per annum
      (or such lesser amount permitted by applicable law), accruing daily from such
      date until the Triggering Redemption Amount, plus all such interest thereon,
      is
      paid in full. For purposes of this Section, a share of Preferred Stock is
      outstanding until such date as the Holder shall have received Conversion Shares
      upon a conversion (or attempted conversion) thereof that meets the requirements
      hereof or has been paid the Triggering Redemption Amount plus all accrued but
      unpaid dividends and all accrued but unpaid liquidated damages in
      cash.

    

    Section
      10.
       Negative
      Covenants.
      So long
      as any shares of Preferred Stock are outstanding, the Corporation will not
      and
      will not permit any of its Subsidiaries to directly or indirectly:

    

    a)  other
      than Permitted Indebtedness, enter into, create, incur, assume, guarantee or
      suffer to exist any indebtedness for borrowed money of any kind, including
      but
      not limited to, a guarantee, on or with respect to any of its property or assets
      now owned or hereafter acquired or any interest therein or any income or profits
      therefrom;

     

    b)  other
      than Permitted Liens, enter into, create, incur, assume or suffer to exist
      any
      liens of any kind, on or with respect to any of its property or assets now
      owned
      or hereafter acquired or any interest therein or any income or profits
      therefrom;

    

    c)  amend
      its
      certificate of incorporation, bylaws or other charter documents so as to
      materially and adversely affect any rights of any Holder;

    

    d)  repay,
      repurchase or offer to repay, repurchase or otherwise acquire more than a de
      minimis number of shares of its Common Stock or Common Stock Equivalents other
      than as to the Conversion Shares to the extent permitted or required under
      the
      Transaction Documents or as otherwise permitted by the Transaction Documents;
      

    

    e)  enter
      into any agreement with respect to any of the foregoing;
      or

    

    f)  pay
      cash
      dividends or distributions on any equity securities of the
      Corporation. 

    

    Section
      11.  Miscellaneous.
      

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    

    a)  Notices.
      Any and
      all notices or other communications or deliveries to be provided by the Holder
      hereunder, including, without limitation, any Notice of Conversion, shall be
      in
      writing and delivered personally, by facsimile, sent by a nationally recognized
      overnight courier service, addressed to the Corporation, at300 Sunport Lane,
      Orlando, Florida 32809, facsimile number 407-240-1431, Attn: Mark L. Mroczkowski
      or such other address or facsimile number as the Corporation may specify for
      such purposes by notice to the Holders delivered in accordance with this
      Section. Any and all notices or other communications or deliveries to be
      provided by the Corporation hereunder shall be in writing and delivered
      personally, by facsimile, sent by a nationally recognized overnight courier
      service addressed to each Holder at the facsimile telephone number or address
      of
      such Holder appearing on the books of the Corporation, or if no such facsimile
      telephone number or address appears, at the principal place of business of
      the
      Holder. Any notice or other communication or deliveries hereunder shall be
      deemed given and effective on the earliest of (i) the date of transmission,
      if
      such notice or communication is delivered via facsimile at the facsimile
      telephone number specified in this Section prior to 5:30 p.m. (New York City
      time), (ii) the date after the date of transmission, if such notice or
      communication is delivered via facsimile at the facsimile telephone number
      specified in this Section later than 5:30 p.m. (New York City time) on any
      date
      and earlier than 11:59 p.m. (New York City time) on such date, (iii) the second
      Business Day following the date of mailing, if sent by nationally recognized
      overnight courier service, or (iv) upon actual receipt by the party to whom
      such
      notice is required to be given.

     

    b)  Absolute
      Obligation.
      Except
      as expressly provided herein, no provision of this Certificate of Determination
      shall alter or impair the obligation of the Corporation, which is absolute
      and
      unconditional, to pay the liquidated damages (if any) on, the shares of
      Preferred Stock at the time, place, and rate, and in the coin or currency,
      herein prescribed. 

     

    c)  Lost
      or Mutilated Preferred Stock Certificate.
      If a
      Holder’s Preferred Stock certificate shall be mutilated, lost, stolen or
      destroyed, the Corporation shall execute and deliver, in exchange and
      substitution for and upon cancellation of a mutilated certificate, or in lieu
      of
      or in substitution for a lost, stolen or destroyed certificate, a new
      certificate for the shares of Preferred Stock so mutilated, lost, stolen or
      destroyed but only upon receipt of evidence of such loss, theft or destruction
      of such certificate, and of the ownership hereof, and indemnity, if requested,
      all reasonably satisfactory to the Corporation.

    

    d)  Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Certificate of Determination shall be governed by and construed and
      enforced in accordance with the internal laws of the State of California,
      without regard to the principles of conflicts of law thereof. Each party agrees
      that all legal proceedings concerning the interpretations, enforcement and
      defense of the transactions contemplated by any of the Transaction Documents
      (whether brought against a party hereto or its respective affiliates, directors,
      officers, shareholders, employees or agents) shall be commenced in the state
      and
      federal courts sitting in the City of New York, Borough of Manhattan (the
“New
      York Courts”).
      Each
      party hereto hereby irrevocably submits to the exclusive jurisdiction of the
      New
      York Courts for the adjudication of any dispute hereunder or in connection
      herewith or with any transaction contemplated hereby or discussed herein
      (including with respect to the enforcement of any of the Transaction Documents),
      and hereby irrevocably waives, and agrees not to assert in any suit, action
      or
      proceeding, any claim that it is not personally subject to the jurisdiction
      of
      any such court, or such New York Courts are improper or inconvenient venue
      for
      such proceeding. Each party hereby irrevocably waives personal service of
      process and consents to process being served in any such suit, action or
      proceeding by mailing a copy thereof via registered or certified mail or
      overnight delivery (with evidence of delivery) to such party at the address
      in
      effect for notices to it under this Certificate of Determination and agrees
      that
      such service shall constitute good and sufficient service of process and notice
      thereof. Nothing contained herein shall be deemed to limit in any way any right
      to serve process in any manner permitted by law. Each party hereto hereby
      irrevocably waives, to the fullest extent permitted by applicable law, any
      and
      all right to trial by jury in any legal proceeding arising out of or relating
      to
      this Certificate of Determination or the transactions contemplated hereby.
      If
      either party shall commence an action or proceeding to enforce any provisions
      of
      this Certificate of Determination, then the prevailing party in such action
      or
      proceeding shall be reimbursed by the other party for its attorneys fees and
      other costs and expenses incurred with the investigation, preparation and
      prosecution of such action or proceeding.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    

    e)  Waiver.
      Any
      waiver by the Corporation or the Holder of a breach of any provision of this
      Certificate of Determination shall not operate as or be construed to be a waiver
      of any other breach of such provision or of any breach of any other provision
      of
      this Certificate of Determination. The failure of the Corporation or the Holder
      to insist upon strict adherence to any term of this Certificate of Determination
      on one or more occasions shall not be considered a waiver or deprive that party
      of the right thereafter to insist upon strict adherence to that term or any
      other term of this Certificate of Determination. Any waiver must be in
      writing.

     

    f)  Severability.
      If any
      provision of this Certificate of Determination is invalid, illegal or
      unenforceable, the balance of this Certificate of Determination shall remain
      in
      effect, and if any provision is inapplicable to any person or circumstance,
      it
      shall nevertheless remain applicable to all other persons and circumstances.
      If
      it shall be found that any interest or other amount deemed interest due
      hereunder violates applicable laws governing usury, the applicable rate of
      interest due hereunder shall automatically be lowered to equal the maximum
      permitted rate of interest. 

    

    g)  Next
      Business Day.
      Whenever any payment or other obligation hereunder shall be due on a day other
      than a Business Day, such payment shall be made on the next succeeding Business
      Day.

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

    h)  Headings.
      The
      headings contained herein are for convenience only, do not constitute a part
      of
      this Certificate of Determination and shall not be deemed to limit or affect
      any
      of the provisions hereof.

    

    i)      
      Status
      of Converted or Redeemed Preferred Stock.
      Shares
      of Preferred Stock may only be issued pursuant to the Purchase Agreement. In
      case any shares of Preferred Stock shall be converted, redeemed or reacquired
      by
      the Corporation, such shares shall resume the status of authorized but unissued
      shares of preferred stock and shall no longer be designated as Series A 9%
      Convertible Preferred Stock.]

     

    *********************

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    RESOLVED,
      FURTHER, that the Chairman, the president or any vice-president, and the
      secretary or any assistant secretary, of the Corporation be and they hereby
      are
      authorized and directed to prepare and file a Certificate of Determination
      of
      Preferences, Rights and Limitations in accordance with the foregoing resolution
      and the provisions of California law.

    

    RESOLVED,
      FURTHER, that each of the undersigned declares under penalty of perjury under
      the laws of the State of California that the statements contained in the
      foregoing certificate are true and correct and of our knowledge.

    

    IN
      WITNESS WHEREOF, the undersigned have executed this Certificate this ___ day
      of
      November 2005.

    
 

    
      	 	 	 
	
              Name:
                Nicholas VandenBrekel

            	 	
              Name:
                Mark L. Mroczkowski

            
	
              Title:
                President

            	 	
              Title:
                Secretary

            

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    ANNEX
      A

    

    NOTICE
      OF
      CONVERSION

    

    (TO
      BE
      EXECUTED BY THE REGISTERED HOLDER IN ORDER TO CONVERT SHARES OF PREFERRED
      STOCK)

    

    The
      undersigned hereby elects to convert the number of shares of Series A 9%
      Convertible Preferred Stock indicated below, into shares of common stock, par
      value $0.001 per share (the “Common
      Stock”),
      of
      Sequiam Corporation, a California corporation (the “Corporation”),
      according to the conditions hereof, as of the date written below. If shares
      are
      to be issued in the name of a person other than undersigned, the undersigned
      will pay all transfer taxes payable with respect thereto and is delivering
      herewith such certificates and opinions as reasonably requested by the
      Corporation in accordance therewith. No fee will be charged to the Holder for
      any conversion, except for such transfer taxes, if any.

    

    Conversion
      calculations:

    

    Date
      to
      Effect Conversion: _________________________________________________

    

    Number
      of
      shares of Preferred Stock owned prior to Conversion:
      ____________________

    

    Number
      of
      shares of Preferred Stock to be Converted:
      ____________________________

    

    Stated
      Value of shares of Preferred Stock to be Converted:
      ________________________

    

    Number
      of
      shares of Common Stock to be Issued: ______________________________

    

    Applicable
      Conversion Price:______________________________________________

    

    Number
      of
      shares of Preferred Stock subsequent to Conversion:
      ___________________

    

    
      	 	
              [HOLDER]

            	 
	 	 	 
	 	
              By:

            	__________________________________	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

     

    28Exhibit 4.3

    
      

    

    Exhibit
      4.3

    

    

    EXHIBIT
      B

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    

    This
      Registration Rights Agreement (this “Agreement”)
      is
      made and entered into as of November __, 2005 among Sequiam Corporation, a
      California corporation (the “Company”),
      and
      the purchasers signatory hereto (each such purchaser is a “Purchaser”
and
      collectively, the “Purchasers”).

    

    This
      Agreement is made pursuant to the Securities Purchase Agreement, dated as of
      the
      date hereof among the Company and the Purchasers (the “Purchase
      Agreement”).

    

    The
      Company and the Purchasers hereby agree as follows:

    

    1.    Definitions. Capitalized
      terms used and not otherwise defined herein that are defined in the Purchase
      Agreement shall have the meanings given such terms in the Purchase Agreement.
      As
      used in this Agreement, the following terms shall have the following
      meanings:

    

    “Advice”
shall
      have the meaning set forth in Section 6(d).

    

    “Effectiveness
      Date”
means,
      with respect to the initial Registration Statement required to be filed
      hereunder, the 120th
      calendar
      day following the date hereof (the 150th
      calendar
      day in the case of a review by the Commission) and, with respect to any
      additional Registration Statements which may be required pursuant to Section
      3(c), the 60th
      calendar
      day following the date on which the Company first knows, or reasonably should
      have known, that such additional Registration Statement is required hereunder;
      provided,
      however,
      in the
      event the Company is notified by the Commission that one of the above
      Registration Statements will not be reviewed or is no longer subject to further
      review and comments, the Effectiveness Date as to such Registration Statement
      shall be the fifth Trading Day following the date on which the Company is so
      notified if such date precedes the dates required above.

    

    “Effectiveness
      Period”
shall
      have the meaning set forth in Section 2(a).

    

    “Event”
shall
      have the meaning set forth in Section 2(b).

    

    “Event
      Date”
shall
      have the meaning set forth in Section 2(b).

    

    “Filing
      Date”
means,
      with respect to the initial Registration Statement required hereunder, the
      30th
      calendar
      day following the date hereof and, with respect to any additional Registration
      Statements which may be required pursuant to Section 3(c), the 30th
      day
      following the date on which the Company first knows, or reasonably should have
      known that such additional Registration Statement is required hereunder.

    

    “Holder”
or
      “Holders”
means
      the holder or holders, as the case may be, from time to time of Registrable
      Securities. 

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    “Indemnified
      Party”
shall
      have the meaning set forth in Section 5(c).

    

    “Indemnifying
      Party”
shall
      have the meaning set forth in Section 5(c).

    

    “Losses”
shall
      have the meaning set forth in Section 5(a).

    

    “Plan
      of Distribution”
shall
      have the meaning set forth in Section 2(a).

    

    “Proceeding”
means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened.

    

    “Prospectus”
means
      the prospectus included in a Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by a Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference or deemed to be
      incorporated by reference in such Prospectus.

    

    “Registrable
      Securities”
means,
      as of the date in question, (i) all of the shares of Common Stock issuable
      upon
      conversion in full of the shares of Preferred Stock, (ii) all shares issuable
      as
      dividends on the Preferred Stock assuming all dividend payments are made in
      shares of Common Stock and the Preferred Stock is held for at least 3 years,
      (iii) all Warrant Shares, (iv) shares of Common Stock underlying warrants issued
      to the placement agent; (v) any securities issued or issuable upon any stock
      split, dividend or other distribution, recapitalization or similar event with
      respect to the foregoing and (vi) any additional shares issuable in connection
      with any anti-dilution provisions associated with the Preferred Stock and
      Warrants (in each case, without giving effect to any limitations on conversion
      set forth in the Certificate of Designation or limitations on exercise set
      forth
      in the Warrant). 

    

    “Registration
      Statement”
means
      the registration statements required to be filed hereunder and any additional
      registration statements contemplated by Section 3(c), including (in each case)
      the Prospectus, amendments and supplements to such registration statement or
      Prospectus, including pre- and post-effective amendments, all exhibits thereto,
      and all material incorporated by reference or deemed to be incorporated by
      reference in such registration statement. 

    

    “Rule
      415”
means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same purpose and
      effect as such Rule.

    

    “Rule
      424”
means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same purpose and
      effect as such Rule.

    

    “Selling
      Shareholder Questionnaire”
shall
      have the meaning set forth in Section 3(a).

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    2.    Shelf
      Registration

    

    (a)  On
      or
      prior to each Filing Date, the Company shall prepare and file with the
      Commission a “Shelf” Registration Statement covering the resale of 130% of the
      Registrable Securities on such Filing Date for an offering to be made on a
      continuous basis pursuant to Rule 415. The Registration Statement shall be
      on
      Form SB-2 (except if the Company is not then eligible to register for resale
      the
      Registrable Securities on Form SB-2, in which case such registration shall
      be on
      another appropriate form in accordance herewith) and shall contain (unless
      otherwise directed by the Holders) substantially the “Plan of Distribution”
attached hereto as Annex A. Subject to the terms of this Agreement, the Company
      shall use its best efforts to cause a Registration Statement to be declared
      effective under the Securities Act as promptly as possible after the filing
      thereof, but in any event prior to the applicable Effectiveness Date, and shall
      use its best efforts to keep such Registration Statement continuously effective
      under the Securities Act until all Registrable Securities covered by such
      Registration Statement have been sold or may be sold without volume restrictions
      pursuant to Rule 144(k) as determined by the counsel to the Company pursuant
      to
      a written opinion letter to such effect, addressed and acceptable to the
      Company’s transfer agent and the affected Holders (the “Effectiveness Period”).
      The Company shall telephonically request effectiveness of a Registration
      Statement as of 5:00 pm Eastern Time on a Trading Day. The Company shall
      immediately notify the Holders via facsimile of the effectiveness of a
      Registration Statement on the same Trading Day that the Company telephonically
      confirms effectiveness with the Commission, which shall be the date requested
      for effectiveness of a Registration Statement. The Company shall, by 9:30 am
      Eastern Time on the Trading Day after the Effective Date (as defined in the
      Purchase Agreement), file a Form 424(b)(5) with the Commission. Failure to
      so
      notify the Holder within 1 Trading Day of such notification shall be deemed
      an
      Event under Section 2(b).

    

    

    (b)  If:
      (i) a
      Registration Statement is not filed on or prior to its Filing Date (if the
      Company files a Registration Statement without affording the Holders the
      opportunity to review and comment on the same as required by Section 3(a),
      the
      Company shall not be deemed to have satisfied this clause (i)), or (ii) the
      Company fails to file with the Commission a request for acceleration in
      accordance with Rule 461 promulgated under the Securities Act, within five
      Trading Days of the date that the Company is notified (orally or in writing,
      whichever is earlier) by the Commission that a Registration Statement will
      not
      be “reviewed,” or not subject to further review, or (iii) prior to its
      Effectiveness Date, the Company fails to file a pre-effective amendment and
      otherwise respond in writing to comments made by the Commission in respect
      of
      such Registration Statement within 25 calendar days after the receipt of
      comments by or notice from the Commission that such amendment is required in
      order for a Registration Statement to be declared effective, or (iv) a
      Registration Statement filed or required to be filed hereunder is not declared
      effective by the Commission by the 30th day following its Effectiveness Date,
      or
      (v) after the Effectiveness Date, a Registration Statement ceases for any reason
      to remain continuously effective as to all Registrable Securities for which
      it
      is required to be effective, or the Holders are not permitted to utilize the
      Prospectus therein to resell such Registrable Securities for 10 consecutive
      calendar days but no more than an aggregate of 15 calendar days during any
      12-month period (which need not be consecutive Trading Days) (any such failure
      or breach being referred to as an “Event”, and for purposes of clause (i) or
      (iv) the date on which such Event occurs, or for purposes of clause (ii) the
      date on which such five Trading Day period is exceeded, or for purposes of
      clause (iii) the date which such 25 calendar day period is exceeded, or for
      purposes of clause (v) the date on which such 10 or 15 calendar day period,
      as
      applicable, is exceeded being referred to as “Event Date”), then in addition to
      any other rights the Holders may have hereunder or under applicable law, on
      each
      such Event Date and on each monthly anniversary of each such Event Date (if
      the
      applicable Event shall not have been cured by such date) until the applicable
      Event is cured, the Company shall pay to each Holder an amount in cash, as
      partial liquidated damages and not as a penalty, equal to 1.5% of the aggregate
      purchase price paid by such Holder pursuant to the Purchase Agreement for any
      Registrable Securities then held by such Holder, up to a maximum of 9% per
      annum
      of the aggregate purchase price paid by such Holder pursuant to the Purchase
      Agreement. If the Company fails to pay any partial liquidated damages pursuant
      to this Section in full within seven days after the date payable, the Company
      will pay interest thereon at a rate of 18% per annum (or such lesser maximum
      amount that is permitted to be paid by applicable law) to the Holder, accruing
      daily from the date such partial liquidated damages are due until such amounts,
      plus all such interest thereon, are paid in full. The partial liquidated damages
      pursuant to the terms hereof shall apply on a daily pro-rata basis for any
      portion of a month prior to the cure of an Event.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    3.    Registration
      Procedures.

    

    In
      connection with the Company’s registration obligations hereunder, the Company
      shall:

    

    (a)  Not
      less
      than five Trading Days prior to the filing of each Registration Statement or
      any
      related Prospectus or any amendment or supplement thereto (including any
      document that would be incorporated or deemed to be incorporated therein by
      reference), the Company shall, (i) furnish to each Holder copies of all such
      documents proposed to be filed, which documents (other than those incorporated
      or deemed to be incorporated by reference) will be subject to the review of
      such
      Holders, and (ii) cause its officers and directors, counsel and independent
      certified public accountants to respond to such inquiries as shall be necessary,
      in the reasonable opinion of respective counsel to conduct a reasonable
      investigation within the meaning of the Securities Act. The Company shall not
      file a Registration Statement or any such Prospectus or any amendments or
      supplements thereto to which the Holders of a majority of the Registrable
      Securities shall reasonably object in good faith, provided that, the Company
      is
      notified of such objection in writing no later than 5 Trading Days after the
      Holders have been so furnished copies of such documents. Each Holder agrees
      to
      furnish to the Company a completed Questionnaire in the form attached to this
      Agreement as Annex B (a “Selling
      Shareholder Questionnaire”)
      not
      less than two Trading Days prior to the Filing Date or by the end of the fourth
      Trading Day following the date on which such Holder receives draft materials
      in
      accordance with this Section.

    

    (b)  (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to a Registration Statement and the Prospectus used in connection
      therewith as may be necessary to keep a Registration Statement continuously
      effective as to the applicable Registrable Securities for the Effectiveness
      Period and prepare and file with the Commission such additional Registration
      Statements in order to register for resale under the Securities Act all of
      the
      Registrable Securities; (ii) cause the related Prospectus to be amended or
      supplemented by any required Prospectus supplement (subject to the terms of
      this
      Agreement), and as so supplemented or amended to be filed pursuant to Rule
      424;
      (iii) respond as promptly as reasonably possible to any comments received from
      the Commission with respect to a Registration Statement or any amendment thereto
      and as promptly as reasonably possible provide the Holders true and complete
      copies of all correspondence from and to the Commission relating to a
      Registration Statement; and (iv) comply in all material respects with the
      provisions of the Securities Act and the Exchange Act with respect to the
      disposition of all Registrable Securities covered by a Registration Statement
      during the applicable period in accordance (subject to the terms of this
      Agreement) with the intended methods of disposition by the Holders thereof
      set
      forth in such Registration Statement as so amended or in such Prospectus as
      so
      supplemented.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    (c)  If
      during
      the Effectiveness Period, the number of Registrable Securities at any time
      exceeds 90% of the number of shares of Common Stock then registered in a
      Registration Statement, then the Company shall file as soon as reasonably
      practicable but in any case prior to the applicable Filing Date, an additional
      Registration Statement covering the resale by the Holders of not less than
      130%
      of the number of such Registrable Securities.

    

    (d)  Notify
      the Holders of Registrable Securities to be sold (which notice shall, pursuant
      to clauses (ii) through (vi) hereof, be accompanied by an instruction to suspend
      the use of the Prospectus until the requisite changes have been made) as
      promptly as reasonably possible (and, in the case of (i)(A) below, not less
      than
      five Trading Days prior to such filing) and (if requested by any such Person)
      confirm such notice in writing no later than one Trading Day following the
      day
      (i)(A) when a Prospectus or any Prospectus supplement or post-effective
      amendment to a Registration Statement is proposed to be filed; (B) when the
      Commission notifies the Company whether there will be a “review” of such
      Registration Statement and whenever the Commission comments in writing on such
      Registration Statement (the Company shall provide true and complete copies
      thereof and all written responses thereto to each of the Holders); and (C)
      with
      respect to a Registration Statement or any post-effective amendment, when the
      same has become effective; (ii) of any request by the Commission or any other
      Federal or state governmental authority for amendments or supplements to a
      Registration Statement or Prospectus or for additional information; (iii) of
      the
      issuance by the Commission or any other federal or state governmental authority
      of any stop order suspending the effectiveness of a Registration Statement
      covering any or all of the Registrable Securities or the initiation of any
      Proceedings for that purpose; (iv) of the receipt by the Company of any
      notification with respect to the suspension of the qualification or exemption
      from qualification of any of the Registrable Securities for sale in any
      jurisdiction, or the initiation or threatening of any Proceeding for such
      purpose; (v) of the occurrence of any event or passage of time that makes the
      financial statements included in a Registration Statement ineligible for
      inclusion therein or any statement made in a Registration Statement or
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference untrue in any material respect or that requires any revisions to
      a
      Registration Statement, Prospectus or other documents so that, in the case
      of a
      Registration Statement or the Prospectus, as the case may be, it will not
      contain any untrue statement of a material fact or omit to state any material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not misleading; and
      (vi) the occurrence or existence of any pending corporate development with
      respect to the Company that the Company believes may be material and that,
      in
      the determination of the Company, makes it not in the best interest of the
      Company to allow continued availability of a Registration Statement or
      Prospectus; provided that any and all of such information shall remain
      confidential to each Holder until such information otherwise becomes public,
      unless disclosure by a Holder is required by law; provided,
      further,
      notwithstanding each Holder’s agreement to keep such information confidential,
      the Holders make no acknowledgement that any such information is material,
      non-public information. 

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    (e)  Use
      its
      best efforts to avoid the issuance of, or, if issued, obtain the withdrawal
      of
      (i) any order suspending the effectiveness of a Registration Statement, or
      (ii)
      any suspension of the qualification (or exemption from qualification) of any
      of
      the Registrable Securities for sale in any jurisdiction, at the earliest
      practicable moment.

    

    (f)  Furnish
      to each Holder, without charge, at least one conformed copy of each such
      Registration Statement and each amendment thereto, including financial
      statements and schedules, all documents incorporated or deemed to be
      incorporated therein by reference to the extent requested by such Person, and
      all exhibits to the extent requested by such Person (including those previously
      furnished or incorporated by reference) promptly after the filing of such
      documents with the Commission.

    

    (g)  Promptly
      deliver to each Holder, without charge, as many copies of the Prospectus or
      Prospectuses (including each form of prospectus) and each amendment or
      supplement thereto as such Persons may reasonably request in connection with
      resales by the Holder of Registrable Securities. Subject to the terms of this
      Agreement, the Company hereby consents to the use of such Prospectus and each
      amendment or supplement thereto by each of the selling Holders in connection
      with the offering and sale of the Registrable Securities covered by such
      Prospectus and any amendment or supplement thereto, except after the giving
      on
      any notice pursuant to Section 3(d).

    

    (h)  If
      NASDR
      Rule 2710 requires any broker-dealer to make a filing prior to executing a
      sale
      by a Holder, the Company shall (i) make an Issuer Filing with the NASDR, Inc.
      Corporate Financing Department pursuant to NASDR Rule 2710(b)(10)(A)(i), (ii)
      respond within five Trading Days to any comments received from NASDR in
      connection therewith, and (iii) pay the filing fee required in connection
      therewith.

    

    (i)  Prior
      to
      any resale of Registrable Securities by a Holder, use its commercially
      reasonable efforts to register or qualify or cooperate with the selling Holders
      in connection with the registration or qualification (or exemption from the
      Registration or qualification) of such Registrable Securities for the resale
      by
      the Holder under the securities or Blue Sky laws of such jurisdictions within
      the United States as any Holder reasonably requests in writing, to keep each
      registration or qualification (or exemption therefrom) effective during the
      Effectiveness Period and to do any and all other acts or things reasonably
      necessary to enable the disposition in such jurisdictions of the Registrable
      Securities covered by each Registration Statement; provided, that the Company
      shall not be required to qualify generally to do business in any jurisdiction
      where it is not then so qualified, subject the Company to any material tax
      in
      any such jurisdiction where it is not then so subject or file a general consent
      to service of process in any such jurisdiction.

    

    (j)  If
      requested by the Holders, cooperate with the Holders to facilitate the timely
      preparation and delivery of certificates representing Registrable Securities
      to
      be delivered to a transferee pursuant to a Registration Statement, which
      certificates shall be free, to the extent permitted by the Purchase Agreement,
      of all restrictive legends, and to enable such Registrable Securities to be
      in
      such denominations and registered in such names as any such Holders may
      request.

    

    (k)  Upon
      the
      occurrence of any event contemplated by this Section 3, as promptly as
      reasonably possible under the circumstances taking into account the Company’s
      good faith assessment of any adverse consequences to the Company and its
      stockholders of the premature disclosure of such event, prepare a supplement
      or
      amendment, including a post-effective amendment, to a Registration Statement
      or
      a supplement to the related Prospectus or any document incorporated or deemed
      to
      be incorporated therein by reference, and file any other required document
      so
      that, as thereafter delivered, neither a Registration Statement nor such
      Prospectus will contain an untrue statement of a material fact or omit to state
      a material fact required to be stated therein or necessary to make the
      statements therein, in light of the circumstances under which they were made,
      not misleading. If the Company notifies the Holders in accordance with clauses
      (ii) through (vi) of Section 3(d) above to suspend the use of any Prospectus
      until the requisite changes to such Prospectus have been made, then the Holders
      shall suspend use of such Prospectus. The Company will use its best efforts
      to
      ensure that the use of the Prospectus may be resumed as promptly as is
      practicable. The Company shall be entitled to exercise its right under this
      Section 3(k) to suspend the availability of a Registration Statement and
      Prospectus, subject to the payment of partial liquidated damages pursuant to
      Section 2(b), for a period not to exceed 60 days (which need not be consecutive
      days) in any 12 month period.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    (l)  Comply
      with all applicable rules and regulations of the Commission.

    

    (m)   
      The
      Company may require each selling Holder to furnish to the Company a certified
      statement as to the number of shares of Common Stock beneficially owned by
      such
      Holder and, if required by the Commission, the person thereof that has voting
      and dispositive control over the Shares. During any periods that the Company
      is
      unable to meet its obligations hereunder with respect to the registration of
      the
      Registrable Securities solely because any Holder fails to furnish such
      information within three Trading Days of the Company’s request, any liquidated
      damages that are accruing at such time as to such Holder only shall be tolled
      and any Event that may otherwise occur solely because of such delay shall be
      suspended as to such Holder only, until such information is delivered to the
      Company.

    

     4.    Registration
      Expenses.
      All
      fees and expenses incident to the performance of or compliance with this
      Agreement by the Company shall be borne by the Company whether or not any
      Registrable Securities are sold pursuant to a Registration Statement. The fees
      and expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including, without limitation,
      fees and expenses (A) with respect to filings required to be made with the
      Trading Market on which the Common Stock is then listed for trading, (B) in
      compliance with applicable state securities or Blue Sky laws reasonably agreed
      to by the Company in writing (including, without limitation, fees and
      disbursements of counsel for the Company in connection with Blue Sky
      qualifications or exemptions of the Registrable Securities and determination
      of
      the eligibility of the Registrable Securities for investment under the laws
      of
      such jurisdictions as requested by the Holders) and (C) if not previously paid
      by the Company in connection with an Issuer Filing, with respect to any filing
      that may be required to be made by any broker through which a Holder intends
      to
      make sales of Registrable Securities with NASD Regulation, Inc. pursuant to
      the
      NASD Rule 2710, so long as the broker is receiving no more than a customary
      brokerage commission in connection with such sale, (ii) printing expenses
      (including, without limitation, expenses of printing certificates for
      Registrable Securities and of printing prospectuses if the printing of
      prospectuses is reasonably requested by the holders of a majority of the
      Registrable Securities included in a Registration Statement), (iii) messenger,
      telephone and delivery expenses, (iv) fees and disbursements of counsel for
      the
      Company, (v) Securities Act liability insurance, if the Company so desires
      such
      insurance, and (vi) fees and expenses of all other Persons retained by the
      Company in connection with the consummation of the transactions contemplated
      by
      this Agreement. In addition, the Company shall be responsible for all of its
      internal expenses incurred in connection with the consummation of the
      transactions contemplated by this Agreement (including, without limitation,
      all
      salaries and expenses of its officers and employees performing legal or
      accounting duties), the expense of any annual audit and the fees and expenses
      incurred in connection with the listing of the Registrable Securities on any
      securities exchange as required hereunder. In no event shall the Company be
      responsible for any broker or similar commissions or, except to the extent
      provided for in the Transaction Documents, any legal fees or other costs of
      the
      Holders.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    5.    Indemnification

    

    (a)  Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder, the officers, directors, agents, brokers (including
      brokers who offer and sell Registrable Securities as principal as a result
      of a
      pledge or any failure to perform under a margin call of Common Stock),
      investment advisors and employees of each of them, each Person who controls
      any
      such Holder (within the meaning of Section 15 of the Securities Act or Section
      20 of the Exchange Act) and the officers, directors, agents and employees of
      each such controlling Person, to the fullest extent permitted by applicable
      law,
      from and against any and all losses, claims, damages, liabilities, costs
      (including, without limitation, reasonable attorneys’ fees) and expenses
      (collectively, “Losses”),
      as
      incurred, arising out of or relating to (1) any untrue or alleged untrue
      statement of a material fact contained in a Registration Statement, any
      Prospectus or any form of prospectus or in any amendment or supplement thereto
      or in any preliminary prospectus, or arising out of or relating to any omission
      or alleged omission of a material fact required to be stated therein or
      necessary to make the statements therein (in the case of any Prospectus or
      form
      of prospectus or supplement thereto, in light of the circumstances under which
      they were made) not misleading, or (2) any violation or alleged violation by
      the
      Company of the Securities Act, Exchange Act or any state securities law, or
      any
      rule or regulation thereunder, in connection with the performance of its
      obligations under this Agreement, except to the extent, but only to the extent,
      that (i) such untrue statements or omissions are based solely upon information
      regarding such Holder furnished in writing to the Company by such Holder
      expressly for use therein, or to the extent that such information relates to
      such Holder or such Holder’s proposed method of distribution of Registrable
      Securities and was reviewed and expressly approved in writing by such Holder
      expressly for use in a Registration Statement, such Prospectus or such form
      of
      Prospectus or in any amendment or supplement thereto (it being understood that
      the Holder has approved Annex A hereto for this purpose) or (ii) in the case
      of
      an occurrence of an event of the type specified in Section 3(d)(ii)-(vi), the
      use by such Holder of an outdated or defective Prospectus after the Company
      has
      notified such Holder in writing that the Prospectus is outdated or defective
      and
      prior to the receipt by such Holder of the Advice contemplated in Section 6(d).
      The Company shall notify the Holders promptly of the institution, threat or
      assertion of any Proceeding arising from or in connection with the transactions
      contemplated by this Agreement of which the Company is aware.

    

    (b)  Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act), and the directors, officers, agents or employees of
      such controlling Persons, to the fullest extent permitted by applicable law,
      from and against all Losses, as incurred, to the extent arising out of or based
      solely upon: (x) such Holder’s failure to comply with the prospectus delivery
      requirements of the Securities Act or (y) any untrue or alleged untrue statement
      of a material fact contained in any Registration Statement, any Prospectus,
      or
      any form of prospectus, or in any amendment or supplement thereto or in any
      preliminary prospectus, or arising out of or relating to any omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein not misleading (i) to the extent, but only to the extent,
      that such untrue statement or omission is contained in any information so
      furnished in writing by such Holder to the Company specifically for inclusion
      in
      such Registration Statement or such Prospectus or (ii) to the extent that (1)
      such untrue statements or omissions are based solely upon information regarding
      such Holder furnished in writing to the Company by such Holder expressly for
      use
      therein, or to the extent that such information relates to such Holder or such
      Holder’s proposed method of distribution of Registrable Securities and was
      reviewed and expressly approved in writing by such Holder expressly for use
      in a
      Registration Statement (it being understood that the Holder has approved Annex
      A
      hereto for this purpose), such Prospectus or such form of Prospectus or in
      any
      amendment or supplement thereto or (2) in the case of an occurrence of an event
      of the type specified in Section 3(d)(ii)-(vi), the use by such Holder of an
      outdated or defective Prospectus after the Company has notified such Holder
      in
      writing that the Prospectus is outdated or defective and prior to the receipt
      by
      such Holder of the Advice contemplated in Section 6(d). In no event shall the
      liability of any selling Holder hereunder be greater in amount than the dollar
      amount of the net proceeds received by such Holder upon the sale of the
      Registrable Securities giving rise to such indemnification
      obligation.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    (c)  Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an “Indemnified
      Party”),
      such
      Indemnified Party shall promptly notify the Person from whom indemnity is sought
      (the “Indemnifying
      Party”)
      in
      writing, and the Indemnifying Party shall have the right to assume the defense
      thereof, including the employment of counsel reasonably satisfactory to the
      Indemnified Party and the payment of all fees and expenses incurred in
      connection with defense thereof; provided, that the failure of any Indemnified
      Party to give such notice shall not relieve the Indemnifying Party of its
      obligations or liabilities pursuant to this Agreement, except (and only) to
      the
      extent that it shall be finally determined by a court of competent jurisdiction
      (which determination is not subject to appeal or further review) that such
      failure shall have prejudiced the Indemnifying Party.

    

    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
      expenses; (2) the Indemnifying Party shall have failed promptly to assume the
      defense of such Proceeding and to employ counsel reasonably satisfactory to
      such
      Indemnified Party in any such Proceeding; or (3) the named parties to any such
      Proceeding (including any impleaded parties) include both such Indemnified
      Party
      and the Indemnifying Party, and such Indemnified Party shall reasonably believe
      that a material conflict of interest is likely to exist if the same counsel
      were
      to represent such Indemnified Party and the Indemnifying Party (in which case,
      if such Indemnified Party notifies the Indemnifying Party in writing that it
      elects to employ separate counsel at the expense of the Indemnifying Party,
      the
      Indemnifying Party shall not have the right to assume the defense thereof and
      the reasonable fees and expenses of one separate counsel shall be at the expense
      of the Indemnifying Party). The Indemnifying Party shall not be liable for
      any
      settlement of any such Proceeding effected without its written consent, which
      consent shall not be unreasonably withheld. No Indemnifying Party shall, without
      the prior written consent of the Indemnified Party, effect any settlement of
      any
      pending Proceeding in respect of which any Indemnified Party is a party, unless
      such settlement includes an unconditional release of such Indemnified Party
      from
      all liability on claims that are the subject matter of such
      Proceeding.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    Subject
      to the terms of this Agreement, all reasonable fees and expenses of the
      Indemnified Party (including reasonable fees and expenses to the extent incurred
      in connection with investigating or preparing to defend such Proceeding in
      a
      manner not inconsistent with this Section) shall be paid to the Indemnified
      Party, as incurred, within ten Trading Days of written notice thereof to the
      Indemnifying Party; provided, that the Indemnified Party shall promptly
      reimburse the Indemnifying Party for that portion of such fees and expenses
      applicable to such actions for which such Indemnified Party is not entitled
      to
      indemnification hereunder, determined based upon the relative faults of the
      parties.

    

    (d)  Contribution.
      If the
      indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified
      Party or insufficient to hold an Indemnified Party harmless for any Losses,
      then
      each Indemnifying Party shall contribute to the amount paid or payable by such
      Indemnified Party, in such proportion as is appropriate to reflect the relative
      fault of the Indemnifying Party and Indemnified Party in connection with the
      actions, statements or omissions that resulted in such Losses as well as any
      other relevant equitable considerations. The relative fault of such Indemnifying
      Party and Indemnified Party shall be determined by reference to, among other
      things, whether any action in question, including any untrue or alleged untrue
      statement of a material fact or omission or alleged omission of a material
      fact,
      has been taken or made by, or relates to information supplied by, such
      Indemnifying Party or Indemnified Party, and the parties’ relative intent,
      knowledge, access to information and opportunity to correct or prevent such
      action, statement or omission. The amount paid or payable by a party as a result
      of any Losses shall be deemed to include, subject to the limitations set forth
      in this Agreement, any reasonable attorneys’ or other reasonable fees or
      expenses incurred by such party in connection with any Proceeding to the extent
      such party would have been indemnified for such fees or expenses if the
      indemnification provided for in this Section was available to such party in
      accordance with its terms.

    

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph.
      Notwithstanding the provisions of this Section 5(d), no Holder shall be required
      to contribute, in the aggregate, any amount in excess of the amount by which
      the
      proceeds actually received by such Holder from the sale of the Registrable
      Securities subject to the Proceeding exceeds the amount of any damages that
      such
      Holder has otherwise been required to pay by reason of such untrue or alleged
      untrue statement or omission or alleged omission, except in the case of fraud
      by
      such Holder.

    

    The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties.

    

    6.    Miscellaneous

    

    (a)  Remedies.
      In the
      event of a breach by the Company or by a Holder, of any of their obligations
      under this Agreement, each Holder or the Company, as the case may be, in
      addition to being entitled to exercise all rights granted by law and under
      this
      Agreement, including recovery of damages, will be entitled to specific
      performance of its rights under this Agreement. The Company and each Holder
      agree that monetary damages would not provide adequate compensation for any
      losses incurred by reason of a breach by it of any of the provisions of this
      Agreement and hereby further agrees that, in the event of any action for
      specific performance in respect of such breach, it shall waive the defense
      that
      a remedy at law would be adequate.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    (b)  No
      Piggyback on Registrations.
      Except
      as set forth on Schedule
      6(b)
      attached
      hereto, neither the Company nor any of its security holders (other than the
      Holders in such capacity pursuant hereto) may include securities of the Company
      in the initial Registration Statement other than the Registrable Securities.
      No
      Person has any right to cause the Company to effect the registration under
      the
      Securities Act of any securities of the Company. The Company shall not file
      any
      other registration statements until the initial Registration Statement required
      hereunder is declared effective by the Commission, provided that this Section
      6(b) shall not prohibit the Company from filing amendments to registration
      statements already filed.

    

    (c)  Compliance.
      Each
      Holder covenants and agrees that it will comply with the prospectus delivery
      requirements of the Securities Act as applicable to it in connection with sales
      of Registrable Securities pursuant to a Registration Statement.

    

    (d)  Discontinued
      Disposition.
      Each
      Holder agrees by its acquisition of such Registrable Securities that, upon
      receipt of a notice from the Company of the occurrence of any event of the
      kind
      described in Section 3(d), such Holder will forthwith discontinue disposition
      of
      such Registrable Securities under a Registration Statement until such Holder’s
      receipt of the copies of the supplemented Prospectus and/or amended Registration
      Statement, or until it is advised in writing (the “Advice”)
      by the
      Company that the use of the applicable Prospectus may be resumed, and, in either
      case, has received copies of any additional or supplemental filings that are
      incorporated or deemed to be incorporated by reference in such Prospectus or
      Registration Statement. The Company will use its best efforts to ensure that
      the
      use of the Prospectus may be resumed as promptly as it practicable. The Company
      agrees and acknowledges that any periods during which the Holder is required
      to
      discontinue the disposition of the Registrable Securities hereunder shall be
      subject to the provisions of Section 2(b).

    

    (e)  Piggy-Back
      Registrations.
      If at
      any time during the Effectiveness Period there is not an effective Registration
      Statement covering all of the Registrable Securities and the Company shall
      determine to prepare and file with the Commission a registration statement
      relating to an offering for its own account or the account of others under
      the
      Securities Act of any of its equity securities, other than on Form S-4 or Form
      S-8 (each as promulgated under the Securities Act) or their then equivalents
      relating to equity securities to be issued solely in connection with any
      acquisition of any entity or business or equity securities issuable in
      connection with the stock option or other employee benefit plans, then the
      Company shall send to each Holder a written notice of such determination and,
      if
      within fifteen days after the date of such notice, any such Holder shall so
      request in writing, the Company shall include in such registration statement
      all
      or any part of such Registrable Securities such Holder requests to be
      registered; provided,
      however,
      that,
      the Company shall not be required to register any Registrable Securities
      pursuant to this Section 6(e) that are eligible for resale pursuant to Rule
      144(k) promulgated under the Securities Act or that are the subject of a then
      effective Registration Statement.

    

    (f)  Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given, unless the same shall be in writing
      and
      signed by the Company and each Holder of the then outstanding Registrable
      Securities. Notwithstanding the foregoing, a waiver or consent to depart from
      the provisions hereof with respect to a matter that relates exclusively to
      the
      rights of Holders and that does not directly or indirectly affect the rights
      of
      other Holders may be given by Holders of all of the Registrable Securities
      to
      which such waiver or consent relates; provided,
      however,
      that
      the provisions of this sentence may not be amended, modified, or supplemented
      except in accordance with the provisions of the immediately preceding sentence.
      

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    (g)  Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be delivered as set forth in the Purchase Agreement.
      

    

    (h)  Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      permitted assigns of each of the parties and shall inure to the benefit of
      each
      Holder. The Company may not assign its rights or obligations hereunder without
      the prior written consent of all of the Holders of the then-outstanding
      Registrable Securities. Each Holder may assign their respective rights hereunder
      in the manner and to the Persons as permitted under the Purchase
      Agreement.

    

    (i)      
      No
      Inconsistent Agreements.
      Neither
      the Company nor any of its subsidiaries has entered, as of the date hereof,
      nor
      shall the Company or any of its subsidiaries, on or after the date of this
      Agreement, enter into any agreement with respect to its securities, that would
      have the effect of impairing the rights granted to the Holders in this Agreement
      or otherwise conflicts with the provisions hereof. Except as set forth on
Schedule
      6(i),
      neither
      the Company nor any of its subsidiaries has previously entered into any
      agreement granting any registration rights with respect to any of its securities
      to any Person that have not been satisfied in full.

    

    (j)      Execution
      and Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

    

    (k)  Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be determined with the provisions of the Purchase
      Agreement.

    

    (l)      
      Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law.

    

    (m)    
      Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction to be invalid, illegal, void or unenforceable, the
      remainder of the terms, provisions, covenants and restrictions set forth herein
      shall remain in full force and effect and shall in no way be affected, impaired
      or invalidated, and the parties hereto shall use their commercially reasonable
      efforts to find and employ an alternative means to achieve the same or
      substantially the same result as that contemplated by such term, provision,
      covenant or restriction. It is hereby stipulated and declared to be the
      intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    (n)  Headings.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

    

    (o)     
      Independent
      Nature of Holders’ Obligations and Rights.
      The
      obligations of each Holder hereunder are several and not joint with the
      obligations of any other Holder hereunder, and no Holder shall be responsible
      in
      any way for the performance of the obligations of any other Holder hereunder.
      Nothing contained herein or in any other agreement or document delivered at
      any
      closing, and no action taken by any Holder pursuant hereto or thereto, shall
      be
      deemed to constitute the Holders as a partnership, an association, a joint
      venture or any other kind of entity, or create a presumption that the Holders
      are in any way acting in concert with respect to such obligations or the
      transactions contemplated by this Agreement. Each Holder shall be entitled
      to
      protect and enforce its rights, including without limitation the rights arising
      out of this Agreement, and it shall not be necessary for any other Holder to
      be
      joined as an additional party in any proceeding for such purpose.

    

    ********************

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

     

     

    
      	 	
              SEQUIAM
                CORPORATION

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	 	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 

    

     

    

    [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    [SIGNATURE
      PAGE OF HOLDERS TO SQUM RRA]

     

    
       

        Name
          of
          Holder: __________________________

        Signature
          of Authorized Signatory of Holder:
          __________________________

        Name
          of
          Authorized Signatory: _________________________

        Title
          of
          Authorized Signatory: __________________________

         

      

 [SIGNATURE
      PAGES CONTINUE]

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    ANNEX
      A

     

    

    Plan
      of Distribution

    

    Each
      Selling Stockholder (the “Selling
      Stockholders”)
      of the
      common stock (“Common
      Stock”)
      of
      Sequiam Corporation, a California corporation (the “Company”)
      and
      any of their pledgees, assignees and successors-in-interest may, from time
      to
      time, sell any or all of their shares of Common Stock on the Trading Market
      or
      any other stock exchange, market or trading facility on which the shares are
      traded or in private transactions. These sales may be at fixed or negotiated
      prices. A Selling Stockholder may use any one or more of the following methods
      when selling shares:

    

      
        	 	
                ·

              	
                ordinary
                  brokerage transactions and transactions in which the broker-dealer
                  solicits purchasers;

              

      

    

     

    
      	 	
              ·

            	
              block
                trades in which the broker-dealer will attempt to sell the shares
                as agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction;

            

    

    

    
      	 	
              ·

            	
              purchases
                by a broker-dealer as principal and resale by the broker-dealer for
                its
                account;

            

    

    

    
      	 	
              ·

            	
              an
                exchange distribution in accordance with the rules of the applicable
                exchange;

            

    

    

    
      	 	
              ·

            	
              privately
                negotiated transactions;

            

    

    

    
      	 	
              ·

            	
              settlement
                of short sales entered into after the effective date of the registration
                statement of which this prospectus is a
                part;

            

    

    

    
      	 	
              ·

            	
              broker-dealers
                may agree with the Selling Stockholders to sell a specified number
                of such
                shares at a stipulated price per
                share;

            

    

    

    
      	 	
              ·

            	
              a
                combination of any such methods of
                sale;

            

    

    

    
      	 	
              ·

            	
              through
                the writing or settlement of options or other hedging transactions,
                whether through an options exchange or otherwise;
                or

            

    

    

    
      	 	
              ·

            	
              any
                other method permitted pursuant to applicable
                law.

            

    

    

    The
      Selling Stockholders may also sell shares under Rule 144 under the Securities
      Act of 1933, as amended (the “Securities
      Act”),
      if
      available, rather than under this prospectus.

    

    Broker-dealers
      engaged by the Selling Stockholders may arrange for other brokers-dealers to
      participate in sales. Broker-dealers may receive commissions or discounts from
      the Selling Stockholders (or, if any broker-dealer acts as agent for the
      purchaser of shares, from the purchaser) in amounts to be negotiated, but,
      except as set forth in a supplement to this Prospectus, in the case of an agency
      transaction not in excess of a customary brokerage commission in compliance
      with
      NASDR Rule 2440; and in the case of a principal transaction a markup or markdown
      in compliance with NASDR IM-2440. 

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    In
      connection with the sale of the Common Stock or interests therein, the Selling
      Stockholders may enter into hedging transactions with broker-dealers or other
      financial institutions, which may in turn engage in short sales of the Common
      Stock in the course of hedging the positions they assume. The Selling
      Stockholders may also sell shares of the Common Stock short and deliver these
      securities to close out their short positions, or loan or pledge the Common
      Stock to broker-dealers that in turn may sell these securities. The Selling
      Stockholders may also enter into option or other transactions with
      broker-dealers or other financial institutions or the creation of one or more
      derivative securities which require the delivery to such broker-dealer or other
      financial institution of shares offered by this prospectus, which shares such
      broker-dealer or other financial institution may resell pursuant to this
      prospectus (as supplemented or amended to reflect such
      transaction).

    

    The
      Selling Stockholders and any broker-dealers or agents that are involved in
      selling the shares may be deemed to be “underwriters” within the meaning of the
      Securities Act in connection with such sales. In such event, any commissions
      received by such broker-dealers or agents and any profit on the resale of the
      shares purchased by them may be deemed to be underwriting commissions or
      discounts under the Securities Act. Each Selling Stockholder has informed the
      Company that it does not have any written or oral agreement or understanding,
      directly or indirectly, with any person to distribute the Common Stock. In
      no
      event shall any broker-dealer receive fees, commissions and markups which,
      in
      the aggregate, would exceed eight percent (8%).

    

    The
      Company is required to pay certain fees and expenses incurred by the Company
      incident to the registration of the shares. The Company has agreed to indemnify
      the Selling Stockholders against certain losses, claims, damages and
      liabilities, including liabilities under the Securities Act. 

    

    Because
      Selling Stockholders may be deemed to be “underwriters” within the meaning of
      the Securities Act, they will be subject to the prospectus delivery requirements
      of the Securities Act. In addition, any securities covered by this prospectus
      which qualify for sale pursuant to Rule 144 under the Securities Act may be
      sold
      under Rule 144 rather than under this prospectus. Each Selling Stockholder
      has
      advised us that they have not entered into any written or oral agreements,
      understandings or arrangements with any underwriter or broker-dealer regarding
      the sale of the resale shares. There is no underwriter or coordinating broker
      acting in connection with the proposed sale of the resale shares by the Selling
      Stockholders.

    

    We
      agreed
      to keep this prospectus effective until the earlier of (i) the date on which
      the
      shares may be resold by the Selling Stockholders without registration and
      without regard to any volume limitations by reason of Rule 144(e) under the
      Securities Act or any other rule of similar effect or (ii) all of the shares
      have been sold pursuant to the prospectus or Rule 144 under the Securities
      Act
      or any other rule of similar effect. The resale shares will be sold only through
      registered or licensed brokers or dealers if required under applicable state
      securities laws. In addition, in certain states, the resale shares may not
      be
      sold unless they have been registered or qualified for sale in the applicable
      state or an exemption from the registration or qualification requirement is
      available and is complied with.

    

    Under
      applicable rules and regulations under the Exchange Act, any person engaged
      in
      the distribution of the resale shares may not simultaneously engage in market
      making activities with respect to the Common Stock for the applicable restricted
      period, as defined in Regulation M, prior to the commencement of the
      distribution. In addition, the Selling Stockholders will be subject to
      applicable provisions of the Exchange Act and the rules and regulations
      thereunder, including Regulation M, which may limit the timing of purchases
      and
      sales of shares of the Common Stock by the Selling Stockholders or any other
      person. We will make copies of this prospectus available to the Selling
      Stockholders and have informed them of the need to deliver a copy of this
      prospectus to each purchaser at or prior to the time of the sale.

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    Annex
      B

    

    SEQUIAM
      CORPORATION

    

    Selling
      Securityholder Notice and Questionnaire

    

    The
      undersigned beneficial owner of common stock, par value $.001 per share (the
      “Common
      Stock”),
      of
      Sequiam Corporation, a California corporation (the “Company”),
      (the
“Registrable
      Securities”)
      understands that the Company has filed or intends to file with the Securities
      and Exchange Commission (the “Commission”)
      a
      registration statement on Form SB-2 (the “Registration
      Statement”)
      for
      the registration and resale under Rule 415 of the Securities Act of 1933, as
      amended (the “Securities
      Act”),
      of
      the Registrable Securities, in accordance with the terms of the Registration
      Rights Agreement, dated as of November __, 2005 (the “Registration
      Rights Agreement”),
      among
      the Company and the Purchasers named therein. A copy of the Registration Rights
      Agreement is available from the Company upon request at the address set forth
      below. All capitalized terms not otherwise defined herein shall have the
      meanings ascribed thereto in the Registration Rights Agreement.

    

    Certain
      legal consequences arise from being named as a selling securityholder in the
      Registration Statement and the related prospectus. Accordingly, holders and
      beneficial owners of Registrable Securities are advised to consult their own
      securities law counsel regarding the consequences of being named or not being
      named as a selling securityholder in the Registration Statement and the related
      prospectus.

    

    NOTICE

    

    The
      undersigned beneficial owner (the “Selling
      Securityholder”)
      of
      Registrable Securities hereby elects to include the Registrable Securities
      owned
      by it and listed below in Item 3 (unless otherwise specified under such Item
      3)
      in the Registration Statement.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    The
      undersigned hereby provides the following information to the Company and
      represents and warrants that such information is accurate:

    

    QUESTIONNAIRE

    

    1.    Name.

    

    
      	 	
              (a)

            	
              Full
                Legal Name of Selling
                Securityholder

            

    

    

    
      	 	 	 
	 	 	 

    

    

    
      	 	
              (b)

            	
              Full
                Legal Name of Registered Holder (if not the same as (a) above) through
                which Registrable Securities Listed in Item 3 below are
                held:

            

    

    

    
      	 	 	 
	 	 	 

    

    

    
      	 	
              (c)

            	
              Full
                Legal Name of Natural Control Person (which means a natural person
                who
                directly or indirectly alone or with others has power to vote or
                dispose
                of the securities covered by the
                questionnaire):

            

    

    

    
      	 	 	 
	 	 	 

    

     

    2.  
      Address for Notices to Selling Securityholder:

    

    
      	 	 
	 	 
	 	 
	
              Telephone:

            	 
	    
	 
	
              Fax:

            	 
	   
	 
	
              Contact_Person:  
                

            	
            	     
	 

    

    

    3.  
      Beneficial Ownership of Registrable Securities:

    

    
      	 	
              (a)

            	
              Type
                and Number of Registrable Securities beneficially
                owned:

            

    

    

    
      	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

      4.  
        Broker-Dealer Status:

      

      
        	 	
                (a)

              	
                Are
                  you a broker-dealer?

              

      

      

      
        	 	
                Yes  
                    ̈

              	 	
                No   
                   ̈

              	 

      

      

      
        	 	
                (b)

              	
                If
                  “yes” to Section 4(a), did you receive your Registrable Securities as
                  compensation for investment banking services to the
                  Company.

              

      

      

      
        	 	
                Yes   
                   ̈

              	 	
                No   
                   ̈

              	 

      

      

      
        	 	
                Note:

              	
                If
                  no, the Commission’s staff has indicated that you should be identified as
                  an underwriter in the Registration
                  Statement.

              

      

      

      
        	 	
                (c)

              	
                Are
                  you an affiliate of a
                  broker-dealer?

              

      

      

      
        	 	
                Yes   
                   ̈

              	 	
                No   
                   ̈

              	 

      

      

      
        	 	
                (d)

              	
                If
                  you are an affiliate of a broker-dealer, do you certify that you
                  bought
                  the Registrable Securities in the ordinary course of business,
                  and at the
                  time of the purchase of the Registrable Securities to be resold,
                  you had
                  no agreements or understandings, directly or indirectly, with any
                  person
                  to distribute the Registrable
                  Securities?

              

      

      

      
        	 	
                Yes   
                   ̈

              	 	
                No   
                   ̈

              	 

      

      

      
        	 	
                Note:

              	
                If
                  no, the Commission’s staff has indicated that you should be identified as
                  an underwriter in the Registration
                  Statement.

              

      

      

      5.  
        Beneficial Ownership of Other Securities of the Company Owned by the Selling
        Securityholder.

      

      Except
        as set forth below in this Item 5, the undersigned is not the beneficial
        or
        registered owner of any securities of the Company other than the Registrable
        Securities listed above in Item 3.

      

      
        	 	
                (a)

              	
                Type
                  and Amount of Other Securities beneficially owned by the Selling
                  Securityholder:

              

      

      

      
        	 	 	 
	 	 	 

      

       

      
        
          
            
            

          

          
            20

            
              

            

          

          
            
            

          

        

      

       

    

    6.   
      Relationships with the Company:

    

    Except
      as set forth below, neither the undersigned nor any of its affiliates, officers,
      directors or principal equity holders (owners of 5% of more of the equity
      securities of the undersigned) has held any position or office or has had any
      other material relationship with the Company (or its predecessors or affiliates)
      during the past three years.

    

    State
      any
      exceptions here:

    

    
      	 	 	 
	 	 	 
	 	 	 

    

    

    

    The
      undersigned agrees to promptly notify the Company of any inaccuracies or changes
      in the information provided herein that may occur subsequent to the date hereof
      at any time while the Registration Statement remains effective.

    

    By
      signing below, the undersigned consents to the disclosure of the information
      contained herein in its answers to Items 1 through 6 and the inclusion of such
      information in the Registration Statement and the related prospectus
and
      any
      amendments or supplements thereto.
      The
      undersigned understands that such information will be relied upon by the Company
      in connection with the preparation or amendment of the Registration Statement
      and the related prospectus.

    

    IN
      WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
      and Questionnaire to be executed and delivered either in person or by its duly
      authorized agent.

    

      

        

        
          	
                  Dated:

                	
                   

                	
                	
                  Beneficial_Owner:
                    

                	        
	 

        

         

      

      
        	 	 	 	
                By:

              	 	 
	 	 	 	 	
                Name:

              	 
	 	 	 	 	
                Title:

              	 

      

       

    

    PLEASE
      FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN
      THE ORIGINAL BY OVERNIGHT MAIL, TO:

     

    21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}]]