Document:

EXHIBIT 4.1

    
      Exhibit
        4.1

       

       

      CORONADO
        INDUSTRIES, INC.

      16857
        E. Saguaro Boulevard

      Fountain
        Hills, AZ 85268

      

      April
        1,
        2006

      

      Coronado
        Employees and Consultants, 

      

      The
        Company’s Board of Directors has decided to make available to all employees and
        consultants, shares of the Company’s common stock
        at
        a negotiated price of not less than 90% of the lowest closing trading price
        during the week prior to the compensation being due.

      

      To
        participate in this program, all you have to do is execute this letter in
        the
        space below, and indicate the amount of wages you wish to
        have
        allocated to this Plan and the pay period from which your salary will be
        credited. Your free-trading shares will be delivered to
        you
        within a few days.

       

      
         

        
          	 	 	 
	 	CORONADO
                  INDUSTRIES, INC.
	 
 	 
 	 
 
	 	By:  	/s/ 
                  Gary R. Smith
	 	
                  

                
	 	Gary
                  R. Smith, President

        

      

       

      
        

      

      
        	
                

              	 	
                

              
	Amount of Compensation	 	Employee/Consultant
                Signature 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                

              	 	
                

              
	Period From 	 	
                Name
                  of Employee/Consultant 

              
	Which To Be Paid 	 	
                (Please
                  Print)EXHIB

	
Certificate Number XX 
	
XXX Shares

	 	
of Series A Preferred Stock

 

 

 

 

 

MM Companies, Inc.

Incorporated Under the Laws of the State of Delaware

 

 

 

 

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

is the owner of 

XXX (X) Shares of

 

SERIES A PREFERRED STOCK

PAR VALUE $0.01 EACH

 

XXXX XX, 200X

___________________________________           ________________________________

Chairman of the BoardSecretary

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND NEITHER SUCH SECURITIES NOR ANY INTEREST IN SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED EXCEPT UPON SUCH REGISTRATION OR UPON DELIVERY TO THE COMPANY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, PLEDGE, ASSIGNMENT OR TRANSFER IS EXEMPT FROM REGISTRATION UNDER SUCH ACT OR LAWS.Exhibit 4.1

                           SHANNON INTERNATIONAL INC.

Number                                                              Shares
--------                                                        -------------
               INCORPORATED UNDER THE LAWS OF THE STATE OF NEVADA
  01                        SERIES A PREFERRED STOCK                 100
                              100 SHARES AUTHORIZED
--------                                                        -------------

See reverse for
certificate definitions

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

This Certifies That          QUADRANGLE HOLDINGS LLC

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

Is The Owner Of                 ONE HUNDRED (100)

      FULLY PAID AND NON-ASSESSBLE SHARES OF SERIES A PREFERRED STOCK

transferable on the books of the Corporation by the holder hereof in person or
by duly authorized attorney upon surrender of this Certificate properly
endorsed. This certificate and the shares represented hereby are subject to all
provisions of the Articles of Incorporation AND THE CERTIFICATE OF DESIGNATION
OF THE SERIES A PREFERRED STOCK attached hereto, to all of which the holder by
acceptance hereby assents. This certificate is not valid until conuntersigned by
the Corporation.

In Witness Whereof, the Corporation has caused this Certificate to be signed by
the facsimile signatures of its duly authorized officers and to be sealed with
the facsimile seal of the Corporation.

Dated:

                          -------------------------------
                          | Shannon International Inc.  |
                          |      CORPORATE SEAL         |
                          |                             |
                          |         NEVADA              |
                          -------------------------------

/s/ J. William Clements                                 /s/ Dennis Brovarone
President                                               Secretary

<PAGE>

The following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common    UNIF GIFT MIN ACT -      Custodian for
                                              ------              -------
TEN ENT - as tenants by the entireties        (Cust)              (Minor)
                                               under Uniform Gifts to Minors
JT TEN - as joint tenants with right of
         survivorship and not as tenants        Act of ______________________
         in common                                              (State)

     Additional abbreviations may also be used though not in the above list.

For value received _____________________ hereby sell, assign and transfer unto

                     PLEASE INSERT SOCIAL SECURITY OR OTHER
                         INDENTIFYING NUMBER OF ASSIGNEE

                Please print or type name and address of assignee
-----------------------------------------------------------------------------

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

________________________________________________________________________ Shares

of the Series A Preferred Stock represented by the within Certificate and do
hereby irrevocably constitute and appoint

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

-----------------------------------------------------------------------------
Attorney to transfer the said stock on the books of the within-named
Corporation, with full power of substitution in the premises.

Dated: ___________  20 _________

SIGNATURE GUARANTEED:                 X_______________________________________

THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTENUPON
THE FACE OF THIS CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR
ENLARGEMENT OR ANY CHANGE WHATSOEVER. THE SIGNATURE(S) MUST BE GUARANTEED BY AN
ELIGIBLE GUARANTOR INSTITUTION (Bank, Stockbrokers, Savings and Loan
Associations and Credit Unions) WITH MEMBERSHIP IN AN APPROVED
SIGNATUREGUARANTEE MEDALLION PROGRAM.

<PAGE>

              CERTIFICATE OF DESIGNATIONS, PREFERENCES, AND RIGHTS
                     of SERIES A CONVERTIBLE PREFERRED STOCK

                          of Shannon International Inc.

       (Pursuant to Section 78.1955 of the Nevada General Corporation Law)

Shannon International Inc., a corporation organized and existing under the
Nevada General Corporation Law (the "Corporation"), hereby certifies that the
following resolutions were adopted by the Board of Directors of the Corporation
on November 1, 2005 pursuant to authority of the Board of Directors as required
by Section 78.195 of the Nevada General Corporation Law:

RESOLVED, that pursuant to the authority granted to and vested in the Board of
Directors of this Corporation (the "Board of Directors" or the "Board") in
accordance with the provisions of its Articles of Incorporation, the Board of
Directors hereby authorizes a series of the Corporation's previously authorized
Preferred Stock, par value $0.001 per share (the "Preferred Stock"), and hereby
states the designation and number of shares, and fixes the relative rights,
preferences, privileges, powers and restrictions thereof as follows:

Series A Convertible Preferred Stock:

                            I. DESIGNATION AND AMOUNT

The designation of this series, which consists of 100 shares of Preferred Stock,
is Series A Preferred Stock (the "Series A Preferred Stock"). As of the date of
issuance of the Series A Preferred Stock the stated value shall be Seventy Seven
Thousand Five Hundred Canadian Dollars ($77,500.00 Cdn. ) per share (the
"Initial Stated Value"). The Initial Stated Value per share is subject to
adjustment at Redemption as defined below as to be equal to one percent (1%) of
373,000 times the highest thirty day average closing price per common share of
Rally Energy Corp., an Alberta corporation traded on the TSX Exchange under the
symbol RAL.V between May 1, 2004 and the date of Redemption (the "Adjusted
Stated Value").

                                    II. RANK

The Series A Preferred Stock shall rank (i) prior to the Corporation's common
stock, par value $0.001 per share (the "Common Stock"); (ii) prior to any class
or series of capital stock of the Corporation hereafter created (unless, with
the consent of the holders of Series A Preferred Stock obtained in accordance
with Article VII hereof, such class or series of capital stock specifically, by
its terms, ranks senior to or pari passu with the Series A Preferred Stock)
(collectively, with the Common Stock, "Junior Securities"); (iii) pan passu with
any class or series of capital stock of the Corporation hereafter created (with
the consent of the holders of Series A Preferred Stock obtained in accordance
with Article VII hereof) specifically ranking, by its terms, on parity with the
Series A Preferred Stock ("Pari Passu Securities"); and (iv) junior to any class
or series of capital stock of the Corporation hereafter created (with the
consent of the holders of Series A Preferred Stock obtained in accordance with
Articles VI or VIII hereof) specifically ranking, by its terms, senior to the
Series A Preferred Stock ("Senior Securities"), in each case as to distribution
of assets upon liquidation, dissolution or winding up of the Corporation,
whether voluntary or involuntary.

                                     1 of 7
<PAGE>
                                 III. DIVIDENDS

The Series A Preferred Stock shall accrue and be paid a quarterly dividend equal
to 12.5% per annum of the Initial or Adjusted Stated Value payable on or before
the thirtieth day following the close of a fiscal quarter. At the election of
the holder of the Series A Preferred Stock, the dividend shall in whole or in
part be paid in the Corporation's common stock at the rate of the lesser of
$0.08 or ninety percent of the average closing price for the fiscal quarter for
which the dividend is paid per common share for each dollar of dividend accrued.
Notice of election to receive the dividend is shares shall be given to the
Corporation on or before the twenty day following the close of a fiscal quarter.

In the event, the Corporation fails to pay any quarterly dividend when due, the
dividend amount accrued increases to and shall remain at 15.5% of the greater of
the Initial Stated Value or the Adjusted Stated Value.

In no event, so long as any Series A Preferred Stock shall remain outstanding,
shall any dividend whatsoever be declared or paid upon, nor shall any
distribution be made upon, any Junior Securities, nor shall any shares of Junior
Securities be purchased or redeemed by the Corporation nor shall any moneys be
paid to or made available for a sinking fund for the purchase or redemption of
any Junior Securities (other than a distribution of Junior Securities), without,
in each such case, the written consent of the holders of a majority of the
outstanding shares of Series A Preferred Stock, voting together as a class.

                           IV. LIQUIDATION PREFERENCE

A. Liquidation Event. If the Corporation shall commence a voluntary case under
the Federal bankruptcy laws or any other applicable Federal or State bankruptcy,
insolvency or similar law, or consent to the entry of an order for relief in an
involuntary case under any law or to the appointment of a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or other similar official) of the
Corporation or of any substantial part of its property, or make an assignment
for the benefit of its creditors, or admit in writing its inability to pay its
debts generally as they become due, or if a decree or order for relief in
respect of the Corporation shall be entered by a court having jurisdiction in

                                     2 of 7
<PAGE>
the premises in an involuntary case under the Federal bankruptcy laws or any
other applicable Federal or state bankruptcy, insolvency or similar law
resulting in the appointment of a receiver, liquidator, assignee, custodian,
trustee, sequestrator (or other similar official) of the Corporation or of any
substantial part of its property, or ordering the winding up or liquidation of
its affairs, and any such decree or order shall be unstayed and in effect for a
period of thirty (30) consecutive days and, on account of any such event, the
Corporation shall liquidate, dissolve or wind up, or if the Corporation shall
otherwise liquidate, dissolve or wind up (each such event being considered a
"Liquidation Event"), no distribution shall be made to the holders of any shares
of capital stock of the Corporation (other than Senior Securities) upon
liquidation, dissolution or winding up unless prior thereto, the holders of
shares of Series A Preferred Stock, subject to this Article IV, shall have
received the Liquidation Preference (as defined in Article IV.C) with respect to
each share. If upon the occurrence of a Liquidation Event, the assets and funds
available for distribution among the holders of the Series A Preferred Stock and
holders of Pari Passu Securities (including any dividends or distribution paid
on any Pari Passu Securities after the date of filing of this Certificate of
Designation) shall be insufficient to permit the payment to such holders of the
preferential amounts payable thereon, then the entire assets and funds of the
Corporation legally available for distribution to the Series A Preferred Stock
and the Pari Passu Securities shall be distributed ratably among such shares in
proportion to the ratio that the Liquidation Preference payable on each such
share bears to the aggregate liquidation preference payable on all such shares.
Any prior dividends or distribution made after the date of filing of this
Certificate of Designation shall offset, dollar for dollar, the amount payable
to the class or series to which such distribution was made.

B. Certain Acts Deemed Liquidation Event. At the option of any holder of Series
A Preferred Stock, (a) the sale, conveyance or disposition of all or
substantially all of the assets of the Corporation, (b) the effectuation by the
Corporation of a transaction or series of related transactions in which more
than 50% of the voting power of the Corporation is disposed of, or (c) the
consolidation, merger or other business combination of the Corporation with or
into any other Person (as defined below) or Persons when the Corporation is not
the survivor, shall be deemed to be a liquidation, dissolution or winding up of
the Corporation. The above provisions shall similarly apply to successive
consolidations, mergers, business combinations, sales or dispositions. "Person"
shall mean any individual, corporation, limited liability company, partnership,
association, trust or other entity or organization.

C. Liquidation Preference. For purposes hereof, the "Liquidation Preference"
with respect to a share of the Series A Preferred Stock shall mean an amount
equal to the sum of (i) the greater of the Initial or Adjusted Stated Value
thereof plus (ii) accrued unpaid dividends and (iii) an amount equal to five
percent (5%) per annum of such Stated or Adjusted Value for the period beginning
on March 24, 2006 and ending on the date of final distribution to the holder
thereof (prorated for any portion of such period). The Liquidation Preference
with respect to any Pari Passu Securities shall be as set forth in the
Certificate of Designation filed in respect thereof.

                                     3 of 7
<PAGE>
                                  V. REDEMPTION

A. Mandatory Redemption. There shall be a mandatory redemption of the Series A
Preferred Shares on or before December 31, 2006. If redemption is to be made
prior to December 31, 2006, the Corporation shall give the holders of the Series
A Preferred Stock ninety days written notice of the Corporation's intent to
redeem prior to December 31, 2006. The redemption price shall be the Stated
Value per share plus any accrued but not paid dividends. Redemption shall be
effected by the delivery of the redemption price to the holder thereof after
said ninety day written notice. Such Notice of Redemption shall have no effect
upon the Holders Conversion Rights set forth in Article VII below until the date
on which the Redemption Price is received by the Holder.

B. Redemption Security Interest. The redemption of the Series A Preferred Stock
shall be secured by a charge on all of the assets of the Corporation including
all accounts receivable, any shares, or other securities held by the Corporation
including [1,035,000] common shares of The Helical Corporation Inc. and
[5,100,000] shares of Logical Sequence Incorporated second only to and subject
to the validity of the General Security Agreement on file in the Province of
Alberta, Canada on or about November 24, 2005 . The Security Interest shall be
supported by any required security documentation, physical delivery and an
opinion of counsel for the Corporation acceptable to the holders of the Series A
Preferred Stock.

                                VI. VOTING RIGHTS

The holders of the Series A Preferred Stock have the following voting power and
as otherwise provided by the Nevada General Corporation Law ("NVGCL"), in this
Article VI, and in Article VIII below.

A. Election of Directors The holders of the Series A Preferred Stock shall as a
class be entitled to elect a majority of the number of directors authorized by
the Corporation's by-laws as in effect from time to time.

B. Matters submitted to a Vote of Stockholders. The holders of the Series A
Preferred Stock shall as a class be entitled to vote upon any matter submitted
to the vote of the Corporation's Stockholders and such matter shall not be
approved by the Corporation's Stockholders without the approval of at least a
majority of the holders of the Series A Preferred Stock.

Notwithstanding the above, the Corporation shall provide each holder of Series A
Preferred Stock with prior notification of any meeting of the shareholders (and
copies of proxy materials and other information sent to shareholders). In the
event of any taking by the Corporation of a record of its shareholders for the
purpose of determining shareholders who are entitled to receive payment of any
dividend or other distribution, any right to subscribe for, purchase or
otherwise acquire (including by way of merger, consolidation or
recapitalization) any share of any class or any other securities or property, or
to receive any other right, or for the purpose of determining shareholders who
are entitled to vote in connection with any proposed sale, lease or conveyance
of all or substantially all of the assets of the Corporation, or any proposed
liquidation, dissolution or winding up of the Corporation, the Corporation shall
mail a notice to each holder, at least ten (10) days prior to the record date
specified therein (or thirty (30) days prior to the consummation of the
transaction or event, whichever is earlier), of the date on which any such
record is to be taken for the purpose of such dividend, distribution, right or
other event, and a brief statement regarding the amount and character of such
dividend, distribution, right or other event to the extent known at such time.

                                     4 of 7
<PAGE>
To the extent that under the NVGCL the vote of the holders of the Series A
Preferred Stock, voting separately as a class or series as applicable, is
required to authorize a given action of the Corporation, the affirmative vote or
consent of the holders of at least a majority of the shares of the Series A
Preferred Stock represented at a duly held meeting at which a quorum is present
or by written consent of a majority of the shares of Series A Preferred Stock
(except as otherwise may be required under the NVGCL) shall constitute the
approval of such action by the class. To the extent that under the NVGCL holders
of the Series A Preferred Stock are entitled to vote on a matter with holders of
Common Stock, voting together as one class, each share of Series A Preferred
Stock shall be entitled to a number of votes equal to the one million shares of
Common Stock. Holders of the Series A Preferred Stock shall be entitled to
notice of all shareholder meetings or written consents (and copies of proxy
materials and other information sent to shareholders) with respect to which they
would be entitled to vote, which notice would be provided pursuant to the
Corporation's bylaws and the NVGCL.

                              VII CONVERSION RIGHTS

Upon sixty-one days written notice to the Corporation of its election to
activate the Conversion Rights set forth herein, delivered on or before the date
of Mandatory Redemption the Holders of the Series A Preferred Stock may convert
the Series A Preferred Stock into the Corporation's Common Stock at the rate of
the lesser of $0.08 or ninety percent of the 20 trading day average closing
price for the period ending the trading day prior to the date of conversion per
common share for each dollar of the Initial or Adjusted Stated Value per Series
A Preferred Stock share surrendered to the Corporation. Conversion shall be
effected by surrendering the Holder's certificate for the Series A Preferred
Stock to Corporation with instructions to convert the same in to Common Stock.
The Corporation shall deliver a certificate for the Common Stock to the Holder
with ten business days of receipt of the certificate for the Series A Preferred
Stock. So long as the certificate for the Series A Preferred Stock and
instructions for conversion are received by the Corporation prior to the
expiration of ninety days after any Notice of Redemption issued by the
Corporation pursuant to Article V above, the conversion shall be effected by the
Corporation.

                                     5 of 7
<PAGE>
The certificates for the common shares received in conversion will bear a legend
stating the securities are "restricted securities" as defined by the U.S.
Securities and Exchange Commission (SEC) and may only be publicly offered and
sold pursuant to an effective registration statement filed with the SEC or
pursuant to an exemption from the registration requirements. Generally the
exemption from the registration requirements for such a public offer and sale
would be pursuant to SEC Rule 144. This Rule requires a one year holding period
from the Closing Date, requires that the sales be made only in market
transactions executed by a broker-dealer and limits the amount of securities
that may be sold in any ninety day period to one percent (1%) of the outstanding
securities or the average weekly trading volume for the securities for the past
four weeks. After two years, the restrictive legend may be removed from
certificates held by non-affiliates of the Corporation.

                           VIII. PROTECTIVE PROVISIONS

So long as shares of Series A Preferred Stock are outstanding, the Corporation
shall not, without first obtaining the prior approval (by vote or written
consent, as provided by the NVGCL) of the holders of at least a majority of the
then outstanding shares of Series A Preferred Stock:

(a)      alter or change the rights, preferences or privileges of the Series A
         Preferred Stock or any capital stock of the Corporation so as to affect
         adversely the Series A Preferred Stock;
(b)      create any new class or series of capital stock having a preference
         over the Series A Preferred Stock as to distribution of assets upon
         liquidation, dissolution or winding up of the Corporation (as
         previously defined in Article II hereof, "Senior Securities");
(c)      create any new class or series of capital stock ranking pari passu with
         the Series A Preferred Stock as to distribution of assets upon
         liquidation, dissolution or winding up of the Corporation (as
         previously defined in Article II hereof, "Pari Passu Securities");
(d)      increase the authorized number of shares of Series A Preferred Stock;
         (e) issue any Senior Securities or Pari Passu Securities; (f) increase
         the par value of the Common Stock;
(g)      do any act or thing not authorized or contemplated by this Certificate
         of Designation which would result in taxation of the holders of shares
         of the Series A Preferred Stock under Section 305 of the Internal
         Revenue Code of 1986, as amended (or any comparable provision of the
         Internal Revenue Code as hereafter from time to time amended);
(h)      Amend the By-Laws of the Corporation;
(i)      Enter into any transaction for the sales of all or substantially all of
         the assets of the Corporation.

In the event holders of at least a majority of the then outstanding shares of
Series A Preferred Stock agree to allow the Corporation to alter or change the
rights, preferences or privileges of the shares of Series A Preferred Stock,
pursuant to subsection (a) above, so as to affect the Series A Preferred Stock,

                                     6 of 7
<PAGE>
then the Corporation will deliver notice of such approved change to the holders
of the Series A Preferred Stock that did not agree to such alteration or change
(the "Dissenting Holders") and Dissenting Holders shall have the right of
Dissenting Stockholders under the NVGCL to petition for the payment of the fair
value of their shares as it exists prior to such alteration or change or
continue to hold their shares of Series A Preferred Stock.

In witness whereof, this Certificate of Designation is executed on behalf of the
Corporation this 27th day of March 2006.

Shannon International, Inc.

By: /s/ J. William Clements
    -----------------------------------------
    J. William Clements, President and
    Chief Executive Officer On behalf of
    the Board of Directors.

                                     7 of 7
<PAGE>

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