Document:

THIS COMMON STOCK PURCHASE WARRANT HAS NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"). THE HOLDER HEREOF, BY
      PURCHASING THIS COMMON STOCK PURCHASE WARRANT, AGREES FOR THE BENEFIT OF
      THE COMPANY THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE
      TRANSFERRED ONLY (A) TO THE COMPANY, (B) PURSUANT TO AN EXEMPTION FROM
      REGISTRATION UNDER THE 1933 ACT, OR (C) IF REGISTERED UNDER THE 1933 ACT
      AND ANY APPLICABLE STATE SECURITIES LAWS.

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

                                    a21, Inc.

                                     FORM OF

                              AMENDED AND RESTATED

                          COMMON STOCK PURCHASE WARRANT

Number of shares: ______________

                                                        Holder: ________________
                                                        Address: _______________

Expiration Date: February 28, 2009

Exercise Price per Share: $.225

a21, Inc., a company organized and existing under the laws of the State of Texas
(the "Company"), hereby certifies that, for value received, ________________ or
its registered assigns (the "Warrant Holder"), is entitled, subject to the terms
set forth below, to purchase from the Company _________ shares (the "Warrant
Shares") of common stock, $0.001 par value (the "Common Stock"), of the Company
(each such share, a "Warrant Share" and all such shares, the "Warrant Shares")
in exchange for (a) one (1) Warrant and (b) $.225 per share (as adjusted from
time to time as provided in Section 7, per Warrant Share (the "Exercise Price"),
at any time and from time to time from and after the date thereof and through
and including 5:00 p.m. New York City time on February 28, 2009 (the "Expiration
Date"), and subject to the following terms and conditions:

<PAGE>

      1. Registration of Warrant. The Company shall register this Warrant upon
records to be maintained by the Company for that purpose (the "Warrant
Register"), in the name of the record Warrant Holder hereof from time to time.
The Company may deem and treat the registered Warrant Holder of this Warrant as
the absolute owner hereof for the purpose of any exercise hereof or any
distribution to the Warrant Holder, and for all other purposes, and the Company
shall not be affected by notice to the contrary.

      2. Investment Representation. The Warrant Holder by accepting this Warrant
represents that the Warrant Holder is acquiring this Warrant for its own account
or the account of an affiliate for investment purposes and not with the view to
any offering or distribution and that the Warrant Holder will not sell or
otherwise dispose of this Warrant or the underlying Warrant Shares in violation
of applicable securities laws. The Warrant Holder acknowledges that the
certificates representing any Warrant Shares will bear a legend indicating that
they have not been registered under the United States Securities Act of 1933, as
amended (the "1933 Act") and may not be sold by the Warrant Holder except
pursuant to an effective registration statement or pursuant to an exemption from
registration requirements of the 1933 Act and in accordance with federal and
state securities laws. If this Warrant was acquired by the Warrant Holder
pursuant to the exemption from the registration requirements of the 1933 Act
afforded by Regulation S thereunder, the Warrant Holder acknowledges and
covenants that this Warrant may not be exercised by or on behalf of a Person
during the one year distribution compliance period (as defined in Regulation S)
following the date hereof. "Person" means an individual, partnership, firm,
limited liability company, trust, joint venture, association, corporation, or
any other legal entity.

      3. Validity of Warrant and Issue of Shares. The Company represents and
warrants that this Warrant has been duly authorized and validly issued and
warrants and agrees that all of Common Stock that may be issued upon the
exercise of the rights represented by this Warrant will, when issued upon such
exercise, be duly authorized, validly issued, fully paid and nonassessable and
free from all taxes, liens and charges with respect to the issue thereof. The
Company further warrants and agrees that during the period within which the
rights represented by this Warrant may be exercised, the Company will at all
times have authorized and reserved a sufficient number of Common Stock to
provide for the exercise of the rights represented by this Warrant.

      4. Registration of Transfers and Exchange of Warrants.

            a. Subject to compliance with the legend set forth on the face of
this Warrant, the Company shall register the transfer of any portion of this
Warrant in the Warrant in the Warrant Register, upon surrender of this Warrant
with the Form of Assignment attached hereto duly completed and signed, to the
Company at the office specified in or pursuant to Section 10. Upon any such
registration or transfer, a new warrant to purchase Common Stock, in
substantially the form of this Warrant (any such new warrant, a "New Warrant"),
evidencing the portion of this Warrant so transferred shall be issued to the
transferee and a New Warrant evidencing the remaining portion of this Warrant
not so transferred, if any, shall be issued to the transferring Warrant Holder.
The acceptance of the New Warrant by the transferee thereof shall be deemed the
acceptance of such transferee of all of the rights and obligations of a Warrant
Holder of a Warrant.

                                        2
<PAGE>

            b. This Warrant is exchangeable, upon the surrender hereof by the
Warrant Holder to the office of the Company specified in or pursuant to Section
10 for one or more New Warrants, evidencing in the aggregate the right to
purchase the number of Warrant Shares which may then be purchased hereunder. Any
such New Warrant will be dated the date of such exchange.

      5. Exercise of Warrants.

            a. Upon surrender of this Warrant with the Form of Election to
Purchase attached hereto duly completed and signed to the Company, at its
address set forth in Section 10, and upon payment and delivery of the Exercise
Price per Warrant Share multiplied by the number of Warrant Shares that the
Warrant Holder intends to purchase hereunder, in lawful money of the United
States of America, in cash or by certified or official bank check or checks or
in whole or in part as a reduction in the Non-Negotiable 12% Promissory Note
dated as of February 29, 2004 as Amended and Restated as of June 24, 2005 (the
"Note") between the Company and the Warrant Holder, to the Company, all as
specified by the Warrant Holder in the Form of Election to Purchase, the Company
shall promptly (but in no event later than 7 business days after the Date of
Exercise [as defined herein]) issue or cause to be issued and cause to be
delivered to or upon the written order of the Warrant Holder and in such name or
names as the Warrant Holder may designate (subject to the restrictions on
transfer described in the legend set forth on the face of this Warrant), a
certificate for the Warrant Shares issuable upon such exercise, with such
restrictive legend as required by the 1933 Act. Any person so designated by the
Warrant Holder to receive Warrant Shares shall be deemed to have become holder
of record of such Warrant Shares as of the Date of Exercise of this Warrant.
Notwithstanding anything contained herein to the contrary, this Warrant may not
be exercised after the Warrant Holder has received notice of prepayment pursuant
to the Note until the adjustment required to be made pursuant to the last
sentence of Section 7(d) of this Warrant is taken into account.

            b. A "Date of Exercise" means the date on which the Company shall
have received (i) this Warrant (or any New Warrant, as applicable), with the
Form of Election to Purchase attached hereto (or attached to such New Warrant)
appropriately completed and duly signed, and (ii) payment of the Exercise Price
for the number of Warrant Shares so indicated by the Warrant Holder to be
purchased.

            c. This Warrant shall be exercisable at any time and from time to
time for such number of Warrant Shares as is indicated in the attached Form of
Election To Purchase. If less than all of the Warrant Shares which may be
purchased under this Warrant are exercised at any time, the Company shall issue
or cause to be issued, at its expense, a New Warrant evidencing the right to
purchase the remaining number of Warrant Shares for which no exercise has been
evidenced by this Warrant.

            d. (i) Notwithstanding anything contained herein to the contrary,
the holder of this Warrant may, at its election exercised in its sole
discretion, exercise this Warrant in whole or in part and, in lieu of making the
cash payment otherwise contemplated to be made to the Company upon such exercise
in payment of the Aggregate Exercise Price, elect instead to receive upon such
exercise the "Net Number" of shares of Common Stock determined according to the
following formula (a "Cashless Exercise"):

                                       3
<PAGE>

                        Net Number = (A x (B - C))/B

                  (i) For purposes of the foregoing formula:

                        A= the total number shares with respect to which this
                        Warrant is then being exercised.

                        B= the average of the last reported sale prices (as
                        reported by Bloomberg) of the Common Stock on each of 20
                        trading days immediately preceding the date of the
                        Exercise Notice.

                        C= the Warrant Exercise Price then in effect at the time
                        of such exercise.

            e. The holder of this Warrant agrees not to elect a Cashless
Exercise prior to July 15, 2006.

      6. Call of Warrant(s) by Company. In the event that the average price of
the Common Stock of the Company as listed on a nationally public securities
market is $.50 for a period of twenty consecutive trading days, and the Note is
not in default, the Company may call the Warrant with 10 days notice and pay to
the Warrant Holder $0.001 per Warrant. This provision shall expire February 28,
2005.

      7. Adjustment of Exercise Price and Number of Shares. The character of the
shares of stock or other securities at the time issuable upon exercise of this
Warrant and the Exercise Price therefore, are subject to adjustment upon the
occurrence of the following events:

            a. Adjustment for Stock Splits, Stock Dividends, Recapitalizations,
Etc. The Exercise Price of this Warrant and the number of shares of Common Stock
or other securities at the time issuable upon exercise of this Warrant shall be
appropriately adjusted to reflect any stock dividend, stock split, combination
of shares, reclassification, recapitalization or other similar event affecting
the number of outstanding shares of stock or securities.

            b. Adjustment for Reorganization, Consolidation, Merger, Etc. In
case of any consolidation or merger of the Company with or into any other
corporation, entity or person, or any other corporate reorganization, in which
the Company shall not be the continuing or surviving entity of such
consolidation, merger or reorganization (any such transaction being hereinafter
referred to as a "Reorganization"), then, in each case, the holder of this
Warrant, on exercise hereof at any time after the consummation or effective date
of such Reorganization (the "Effective Date"), shall receive, in lieu of the
shares of stock or other securities at any time issuable upon the exercise of
the Warrant issuable on such exercise prior to the Effective Date, the stock and
other securities and property (including cash) to which such holder would have
been entitled upon the Effective Date if such holder had exercised this Warrant
immediately prior thereto (all subject to further adjustment as provided in this
Warrant).

            c. Certificate as to Adjustments. In case of any adjustment or
readjustment in the price or kind of securities issuable on the exercise of this
Warrant, the Company will promptly give written notice thereof to the holder of
this Warrant in the form of a certificate, certified and confirmed by the Board
of Directors of the Company, setting forth such adjustment or readjustment and
showing in reasonable detail the facts upon which such adjustment or
readjustment is based.

                                       4
<PAGE>

            d. Adjustment related to Note. If the Note is outstanding after July
15, 2006 (i.e., its maturity date), then the number of shares of Common Stock or
other securities issuable upon exercise of this Warrant shall be increased by
_____ common shares on the first day of every calendar month thereafter until
the Note is paid in full. In addition, the Exercise Price of the Warrant shall
be reduced to the lower of (i) $.225, or (ii) 50% of the average closing price
of the Common Stock for 20 consecutive trading days prior to and including July
15, 2006 ("New Exercise Price"). If the Note is repaid prior to July 15, 2006,
then the number of shares of Common Stock or other securities issuable upon
exercise of this Warrant shall be adjusted pro rata as per the following
formula: Warrant Shares = ______ x number of days Note outstanding / number of
days from issuance of Note to July 15, 2006.

      8. Fractional Shares. The Company shall not be required to issue or cause
to be issued fractional Warrant Shares on the exercise of this Warrant. The
number of full Warrant Shares that shall be issuable upon the exercise of this
Warrant shall be computed on the basis of the aggregate number of Warrants
Shares purchasable on exercise of this Warrant so presented. If any fraction of
a Warrant Share would, except for the provisions of this Section 8, be issuable
on the exercise of this Warrant, the Company shall, at its option, (i) pay an
amount in cash equal to the Exercise Price multiplied by such fraction or (ii)
round the number of Warrant Shares issuable, up to the next whole number.

      9. Piggyback Rights.

            a. Rights to Piggyback.

                  (i) If (and on each occasion that) the Company proposes to
register any of its securities under the Securities Act either for the Company's
own account or for the account of any of its stockholders (other than pursuant
to a Form S-4 or Form S-8 or comparable form and other than pursuant to a demand
registration right granted to other persons to the extent that such rights
prohibit the Company from including securities of any other Person in such
registration statement) (each such registration not withdrawn or abandoned prior
to the effective date thereof being herein called a "Piggyback Registration"),
the Company will give written notice to the Warrant Holder of such proposal not
later than the tenth day following the receipt by the Company of notice of
exercise of any registration rights by any persons.

                  (ii) Subject to the provisions contained in paragraph (b) of
this Section 9 and in the last sentence of this subparagraph (ii), (A) the
Company will be obligated and required to include in each Piggyback Registration
all Warrant Shares with respect to which the Company shall receive from the
Warrant Holder, within 15 days after the date on which the Company shall have
given written notice of such Piggyback Registration to the Warrant Holder
pursuant to Section 9(a)(i) hereof, the written requests of such Warrant Holder
for inclusion in such Piggyback Registration, and (B) the Company will use
commercially reasonable efforts in good faith to effect promptly the
registration of all such Warrant Shares. The Warrant Holder shall be permitted
to withdraw all or any part of the Warrant Shares of such Warrant Holder from
any Piggyback Registration at any time prior to the effective date of such
Piggyback Registration unless such Warrant Holder shall have entered into a
written agreement with the Company's underwriters establishing the terms and
conditions under which such Warrant Holder would be obligated to sell such
securities in such Piggyback Registration. The Company will not be obligated or
required to include any Warrant Shares in any registration effected solely to
implement an employee benefit plan or a transaction to which Rule 145 of the
Commission is applicable.

                                       5
<PAGE>

            b. Priority on Piggyback Registrations. If a Piggyback Registration
is an underwritten registration, and the managing underwriters shall give
written advice to the Company of a number of securities to which such
registration should, in the opinion of the managing underwriters of such
registration in the light of marketing factors, be limited (the "Underwriters'
Maximum Number"), then: (i) the Company shall be entitled to include in such
registration that number of securities which the Company proposes to offer and
sell for its own account in such registration and/or number of securities
requested to be included in such registration by persons exercising demand
registration rights which does not exceed the Underwriters' Maximum Number; (ii)
if the Underwriters' Maximum Number exceeds the number of securities which the
Company proposes to offer and sell for its own account in such registration,
then the Company will be obligated and required to include in such registration
that number of Warrant Shares requested by the Warrant Holder thereof to be
included in such registration and which does not exceed such excess and such
securities to be registered shall be allocated pro rata among the Warrant Holder
on the basis of the number of Warrant Shares requested to be included therein by
the Warrant Holder and any other person to whom the Company has granted
piggyback registration rights; (iii) if the Underwriters' Maximum Number exceeds
the sum of the number of Warrant Shares which the Company shall be required to
include in such registration pursuant to clause (ii) above and the number of
securities which the Company proposes to offer and sell for its own account in
such registration, then the Company may include in such registration that number
of other securities which persons shall have requested be included in such
registration and which shall not be greater than such excess.

            c. Selection of Underwriters. In any Piggyback Registration, the
Company shall (unless the Company shall otherwise agree) have the right to
select the investment bankers and managing underwriters in such registration.

            d. Right to Terminate Registration. The Company shall have the right
to terminate or withdraw any registration initiated by it under this Section 9
prior to the effectiveness of such registration whether or not any Warrant
Holder has elected to include Warrant Shares in such registration.

      10. Notice. All notices and other communications hereunder shall be in
writing and shall be deemed to have been given (i) on the date they are
delivered if delivered in person; (ii) on the date initially received if
delivered by facsimile transmission followed by registered or certified mail
confirmation; (iii) on the date delivered by an overnight courier service; or
(iv) on the third business day after it is mailed by registered or certified
mail, return receipt requested with postage and other fees prepaid as follows:

                                       6
<PAGE>

            If to the Company:

            a21, Inc.
            7660 Centurion Parkway
            Jacksonville, Florida 32256
            Attention: President

            With a copy to

            Lloyd L. Rothenberg, Esq.
            Loeb & Loeb LLP
            345 Park Avenue
            New York, NY 10154-0037
            Direct Dial: 212-407-4937
            Facsimile: 212-407-4990
            Email: lrothenberg@loeb.com

            If to the Warrant Holder:

            To the address in this Warrant or to the address provided to the
            Company by an Investor.

      11. Miscellaneous.

            a. This Warrant shall be binding on and inure to the benefit of the
parties hereto and their respective successors and permitted assigns. This
Warrant may be amended only in writing and signed by the Company and the Warrant
Holder.

            b. Nothing in this Warrant shall be construed to give to any person
or corporation other than the Company and the Warrant Holder any legal or
equitable right, remedy or cause of action under this Warrant; this Warrant
shall be for the sole and exclusive benefit of the Company and the Warrant
Holder.

            c. This Warrant shall be governed by, construed and enforced in
accordance with the internal laws of the State of New York without regard to the
principles of conflicts of law thereof.

            d. The headings herein are for convenience only, do not constitute a
part of this Warrant and shall not be deemed to limit or affect any of the
provisions hereof.

            e. In case any one or more of the provisions of this Warrant shall
be invalid or unenforceable in any respect, the validity and enforceablilty of
the remaining terms and provisions of this Warrant shall not in any way be
affected or impaired thereby and the parties will attempt in good faith to agree
upon a valid and enforceable provision which shall be a commercially reasonably
substitute therefore, and upon so agreeing, shall incorporate such substitute
provision in this Warrant.

                                       7
<PAGE>

            f. The Warrant Holder shall not, by virtue hereof, be entitled to
any voting or other rights of a shareholder of the Company, either at law or
equity, and the rights of the Warrant Holder are limited to those expressed in
this Warrant.

            g. This Warrant supercedes and replaces in its entirety the Warrant
issued as of February 29, 2004 by the Company to the Warrant Holder.

      IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed by the authorized officer as of the date first above stated.

      a21, Inc.

      By:
          ------------------------------------------------

      Name:
            ----------------------------------------------

      Title:
             ---------------------------------------------

                                       8
<PAGE>

                          FORM OF ELECTION TO PURCHASE

(To be executed by the Warrant Holder to exercise the right to purchase shares
of Common Stock under the foregoing Warrant)

To: a21, Inc.:

In accordance with the Warrant enclosed with this Form of Election to Purchase,
the undersigned hereby irrevocably elects to purchase ______________ shares of
Common Stock ("Common Stock"), $0.001 par value, of a21, Inc. and encloses one
warrant and $0.225 for each Warrant Share being purchased or an aggregate of
$________________ in cash or certified or official bank check or checks or in
whole or in part as a reduction in the Non-Negotiable 12% Promissory Note dated
approximately even herewith (the "Note") between the Company and the Warrant
Holder, which sum represents the aggregate Exercise Price (as defined in the
Warrant) together with any applicable taxes payable by the undersigned pursuant
to the Warrant.

The undersigned requests that certificates for the shares of Common Stock
issuable upon this exercise be issued in the name of:

__________________________________________________

__________________________________________________

__________________________________________________
(Please print name and address)

__________________________________________________
(Please insert Social Security or Tax Identification Number)

<PAGE>

If the number of shares of Common Stock issuable upon this exercise shall not be
all of the shares of Common Stock which the undersigned is entitled to purchase
in accordance with the enclosed Warrant, the undersigned requests that a New
Warrant (as defined in the Warrant) evidencing the right to purchase the shares
of Common Stock not issuable pursuant to the exercise evidenced hereby be issued
in the name of and delivered to:

__________________________________________________

__________________________________________________

__________________________________________________
(Please print name and address)

Dated:                              Name of Warrant Holder:

                                       (Print)__________________________________

                                       (By:)____________________________________

                                       (Name:)__________________________________

                                       (Title:)_________________________________

                                    Signature must conform in all respects to
                                    name of Warrant Holder as specified on the
                                    face of the Warrant

                                       2EXHIBIT
        4.1

       

       

      STATEMENT
        OF DESIGNATION ESTABLISHING

      SERIES E
        PREFERRED STOCK OF POSITRON CORPORATION

       

       

      To
        the
        Secretary of State of the State of Texas:

       

      Pursuant
        to the provisions of Article 2.13 of the Texas Business Corporation
        Act,
        the undersigned corporation submits the following statement for the purpose
        of
        establishing and designating a series of shares and determining and fixing
        the
        relative rights and preferences thereof:

       

      A.   The
        name
        of the corporation is Positron Corporation (the "Company").

       

      B.   The
        following resolution, establishing and designating a series of shares and
        determining and filing the relative rights and preferences thereof, was duly
        adopted by the Board of Directors of the Company as of June 27, 2005.

       

      RESOLVED,
        that, pursuant to the authority vested in the Board of Directors of the Company
        by its Articles of Incorporation, as amended, there hereby is created, out
        of
        the 10,000,000 shares of preferred stock authorized in Article Four of its
        Articles of Incorporation, as amended, a series of 600,000 shares of Preferred
        Stock, par value $1.00 per share, designated Series F Preferred Stock of
        the
        Company (the "Series
        F Preferred Stock");
        and
        the designation, amount and stated value of such series of Preferred Stock
        and
        the voting powers/preferences, and relative, participating, optional and
        other
        special rights of the shares of such Series, and the qualifications, limitations
        or restrictions thereon, are set forth as follows:

       

      1.   Certain
        Definitions.
        Unless
        the context otherwise requires, the terms defined in this Section 1 shall
        have
        the meanings herein specified.

       

      "Closing
        Price"
        of any
        Common Stock on any day shall mean the last reported sale price on such day
        in
        the case of The NASDAQ Stock Market, or, if the Common Stock is not quoted
        or
        admitted to trading on such quotation system, the closing sale price in the
        over-the-counter market on the day in question.

       

      "Indebtedness"
        shall
        mean, (i) all obligations for borrowed money or with respect to deposits
        or
        advances of any kind, (ii) all obligations evidenced by bonds, debentures,
        notes
        or similar instruments, (iii) all obligations upon which interest charges
        are
        customarily paid, (iv) all obligations under conditional sale or other title
        retention agreements relating to property acquired by the Company, (v) all
        obligations in respect of the deferred purchase price of property or services
        (excluding current accounts payable incurred in the ordinary course of
        business), (vi) all Indebtedness of others secured by (or for which the holder
        of such Indebtedness has an existing right, contingent or otherwise, to be
        secured by) any lien on property owned or acquired by the Company, whether
        or
        not the Indebtedness secured thereby has been assumed, (vii) all guarantees
        of
        Indebtedness of others, (viii) all capital lease obligations, (ix) all
        obligations, contingent or otherwise, in respect of letters of credit and
        letters of guaranty and (x) all obligations, contingent or otherwise, in
        respect
        of bankers' acceptances.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      "Operating
        Cash Flow"
        shall
        mean the sum of net income, depreciation, change in accruals and change in
        accounts payable, minus change in accounts receivable, minus change in
        inventories.

       

      "Trading
        Day"
        shall
        mean a day on which securities traded on the national securities exchange
        or
        quotation system or in the over-the-counter market used to determine the
        closing
        price.

       

      2.   Designation
        and Number of Shares.
        The
        designation of said series of preferred stock authorized by this resolution
        shall be "Series F Preferred Stock" (the "Series
        F Preferred Stock")
        which
        shall consist of a maximum of 600,000 shares of such Series F Preferred Stock,
        $1.00 par value per share, which shall have the preferences, rights,
        qualifications, limitations, and restrictions set forth below.

       

      3.   Rank.
        All
        shares of the Series F Preferred Stock shall rank prior, both as to payment
        of
        dividends and as to distributions of assets upon liquidation or winding up
        of
        the Company, whether voluntary or involuntary, to all of the Company's now
        or
        hereafter issued common stock, par value $.01 per share (the "Common
        Stock"),
        and
        to all of the Company's hereafter issued capital stock ranking junior to
        the
        Series F Preferred Stock, other than the Company's Series A Preferred
        Stock, par value $1.00 per share (the "Series A
        Preferred Stock"),
        Series C Preferred Stock, par value $1.00 per share (the "Series C
        Preferred Stock"), Series
        D Preferred Stock, par value $1.00 per share (the "Series D
        Preferred Stock"),
        and
        Series E Preferred Stock, par value $1.00 per share (the "Series E
        Preferred Stock")  both as to payment of dividends and as to
        distribution of assets upon liquidation, dissolution or winding up of the
        Company, whether voluntary or involuntary, when and if issued (the Common
        Stock
        and any other capital stock, other than the Series A Preferred Stock, Series
        C
        Preferred Stock, Series D Preferred Stock, and Series
        E Preferred
        Stock being herein referred to as "Junior
        Stock").
        The
        Series F Preferred Stock shall be junior both as to payment of dividends
        and as
        to distributions of assets upon liquidation or winding up of the Company,
        whether voluntary or involuntary, to the Series A Preferred Stock, Series
        C
        Preferred Stock, Series D Preferred Stock and Series E Preferred
        Stock.

       

      4.   Dividends.

       

      (a)   The
        holders of shares of Series F Preferred Stock shall be entitled to receive,
        when, as and if declared by the Board of Directors of the Company, cumulative
        dividends out of funds legally available therefor, at the annual rate of
        $0.06
        per annum (the "Annual
        Dividend Rate").
        Such
        dividends shall cumulate from the date issued and be paid when, as and if
        declared, annually on May 21st
        of each
        year commencing on May 21, 2006 (each of such dates being a "Series
        F Dividend Payment Date"
        and
        each period between such dates or the date of issue, if earlier, being a
        "Series
        F Dividend Period")
        to the
        shareholders of record of Series F Preferred Stock on the respective date,
        not
        exceeding 15 days preceding such Series F Dividend Payment Date, as
        shall
        be fixed for this purpose by the Board of Directors of the Company in advance
        of
        payment of each particular dividend. Dividend payments made with respect
        to
        shares of Series F Preferred Stock shall be made in cash; provided however,
        if
        the aggregate dividends payable on all outstanding series of preferred stock
        plus all interest and scheduled principal payable on Indebtedness for the
        Series
        E Dividend Period exceeds 50% of the Company's Operating Cash Flow for the
        twelve month period ending on December 31st of the prior year ("50%
        of
        cash flow"),
        at
        the Company's option, the dividends may be payable (i) in cash up to an
        aggregate amount equal to 50% of cash flow, and (ii) in fully paid and
        nonassessable shares of Common Stock for the balance of such dividend payment.
        For this purpose only the value of each share of Common Stock shall be the
        greater of (A) 60% of the market price of the Common Stock (calculated in
        accordance with Section 6(d)) and (B) $0.05 per share, and the issuance of
        such
        additional shares shall constitute full payment of such dividend. The amount
        determined under (A) and (B) is hereinafter referred to as the "Dividend
        Share
        Price." The amount of dividends payable for the initial dividend period and
        any
        period shorter than 1 year Series F Dividend Period shall be computed on
        the
        basis of a 360-day year of twelve 30-day months.

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

         

      

      (b)   All
        dividends paid in shares of Common Stock pursuant to subparagraph (a) shall
        be
        paid pro rata to the holders entitled thereto. Notwithstanding Section 4(a)(ii)
        above, in lieu of issuing fractional shares of Common Stock in connection
        with
        payment of a dividend for a Series F Dividend Period, any portion of such
        dividend which would otherwise result in distribution of a fractional share
        of
        Common Stock shall be paid in cash in an amount equal to the product of such
        fraction and the Dividend Share Price. All shares of Common Stock which may
        be
        issued as a dividend with respect to the Series F Preferred Stock will thereupon
        be duly authorized, validly issued, fully paid and nonassessable. 

       

      (c)   Holders
        of Series F Preferred Stock will not be entitled to any dividends, whether
        payable in cash, property or stock, in excess of the full cumulative dividends.
        No interest or sum of money in lieu of interest shall be payable in respect
        of
        any accumulated unpaid dividends.

       

      (d)   No
        dividends or other distributions shall be declared, paid or set apart for
        payment on shares of Junior Stock or any other capital stock of the Company
        ranking junior as to dividends to the Series F Preferred Stock (the Junior
        Stock
        and any such other class or series of the Company's capital stock, other
        than
        the Series A Preferred Stock, Series C Preferred Stock, Series
        D
        Preferred Stock and Series E Preferred Stock being herein referred to as
        "Junior
        Dividend Stock"),
        unless full cumulative dividends have been, or contemporaneously are, paid
        or
        declared and set apart for such payment on the Series F Preferred Stock for
        all
        dividend payment periods ending on or before the payment date of such dividends
        on Junior Dividend Stock.

       

      (e)   No
        payment on account of the purchase, redemption, retirement or other acquisition
        of shares of Junior Dividend Stock or any other class or series of the Company's
        capital stock ranking junior to the Series F Preferred Stock as to distributions
        of assets upon liquidation, dissolution or winding up of the Company, whether
        voluntary or involuntary (the Junior Stock and any other class or series
        of the
        Company's capital stock ranking junior to the Series F Preferred Stock as
        to
        such distributions other than the Series A Preferred Stock, Series
        C
        Preferred Stock, Series D Preferred Stock and Series E Preferred Stock
        being herein referred to as "Junior
        Liquidation Stock")
        shall
        be made for any period unless and until all accrued and unpaid dividends
        on the
        Series F Preferred Stock for all dividend payment periods ending on or before
        such payment for such Junior Dividend Stock or Junior Liquidation Stock (as
        hereinafter defined) shall have been paid or declared and set apart for
        payment.

       

      (f)   No
        dividends or other distributions shall be declared, paid or set apart for
        payment on shares of any class or series of the Company's capital stock
        hereafter issued ranking, as to dividends, on a parity with the Series F
        Preferred Stock (any such class or series of the Company's capital stock
        being
        herein referred to as "Parity
        Dividend Stock")
        for
        any period unless full cumulative dividends have been, or contemporaneously
        are,
        paid or declared and set apart for such payment on the Series E Preferred
        Stock
        for all dividend payment periods ending on or before the payment date of
        such
        dividends on Parity Dividend Stock. No dividends may be paid on Parity Dividend
        Stock except on dates on which dividends are paid on the Series E Preferred
        Stock. All dividends paid or declared and set apart for payment on the Series
        E
        Preferred Stock and the Parity Dividend Stock shall be paid or declared and
        set
        apart for payment pro rata so that the amount of dividends paid or declared
        and
        set apart for payment per share on the Series E Preferred Stock and the Parity
        Dividend Stock on any date shall in all cases bear to each other the same
        ratio
        that accrued and unpaid dividends to the date of payment on the Series E
        Preferred Stock and the Parity Dividend Stock bear to each other.

       

      
        
          
          

        

        
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      (g)   No
        payment on account of the purchase, redemption, retirement or other acquisition
        of shares of Parity Dividend Stock or any class or series of the Company's
        capital stock ranking on a parity with the Series F Preferred Stock as to
        distributions of assets upon liquidation, dissolution or winding up of the
        Company, whether voluntary or involuntary (any such class or series of the
        Company's capital stock being herein referred to as "Parity
        Liquidation Stock")
        shall
        be made, and, other than dividends to the extent permitted by the preceding
        paragraph, no distributions shall be declared, paid or set apart for payment
        on
        shares of Parity Dividend Stock or Parity Liquidation Stock, unless and until
        all accrued and unpaid dividends on the Series F Preferred Stock for all
        dividend payment periods ending on or before such payment for, or the payment
        date of such distributions on, such Parity Dividend Stock or Parity, Liquidation
        Stock shall have been paid or declared and set apart for payment; provided,
        however, that the restrictions set forth in this sentence shall not apply
        to the
        purchase or other acquisition of Parity Dividend Stock or Parity Liquidation
        Stock either (A) pursuant to any employee or director incentive or
        benefit
        plan or arrangement (including any employment, severance or consulting
        agreement) of the Company or any subsidiary of the Company hereafter adopted
        or
        (B) in exchange solely for Junior Stock.

       

      (h)   Any
        reference to "distribution" contained in this Section 4 shall not
        be deemed
        to include any distribution made in connection with any liquidation, dissolution
        or winding up of the Company, whether voluntary or involuntary.

       

      5.   Liquidation
        Preference.

       

      (a)   In
        the
        event of any liquidation, dissolution or winding up of the Company, whether
        voluntary or involuntary, before any payment or distribution of the assets
        of
        the Company shall be made to or set apart for the holders of Parity Liquidation
        Stock, the holders of Series A Preferred Stock then Series C
        Preferred
        Stock, then the Series D Preferred Stock and Series E Preferred Stock shall
        be
        paid all amounts that such holders are entitled with respect to the liquidation
        and dissolution of the Company. In the event of any liquidation, dissolution
        or
        winding up of the Company, whether voluntary or involuntary, before any payments
        or distribution of the assets of the Company shall be made to or set apart
        for
        the holders of Junior Stock, the holders of the Series F Preferred Stock
        shall
        be entitled to receive in immediately available funds the sum of $1.00 per
        share, plus all dividends (whether or not authorized) accumulated and unpaid
        without interest thereon to the date of final distribution to such holders
        (the
        "Liquidation
        Preference");
        but
        such holders shall not be entitled to any further payment. If, upon any
        liquidation, dissolution or winding up of the Company, the assets of the
        Company, or proceeds thereof, distributable among the holders of the Series
        F
        Preferred Stock shall be insufficient to pay in full the Liquidation Preference
        and liquidating payments on any other shares of any class or series of Parity
        Liquidation Stock, then such assets, or the proceeds thereof, shall be
        distributed among the holders of Series F Preferred Stock and any such other
        Parity Liquidation Stock ratably in accordance with the respective amounts
        that
        would be payable on such shares of Series F Preferred Stock and any such
        other
        shares of Parity Liquidation Stock if all amounts payable thereon were paid
        in
        full.

       

      
        
          
          

        

        
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      (b)   Subject
        to the rights of the holders of shares of Parity Liquidation Stock, after
        payment shall have been made in full to the holders of the Series F Preferred
        Stock, as provided in this Section 5, any other series or class or
        classes
        of Junior Stock shall, subject to the respective terms and provisions (if
        any)
        applying thereto, be entitled to receive any and all assets remaining to
        be paid
        or distributed, and the holders of the Series F Preferred Stock shall not
        be
        entitled to share therein.

       

      (c)   For
        purposes of this Section 5, neither the voluntary sale, lease, conveyance,
        exchange, or transfer (for cash, shares of stock, securities, or other
        consideration) of all or substantially all of the property or assets of the
        Company, nor the consolidation or merger of the Company with or into one
        or more
        other corporations, shall be deemed to be a liquidation, dissolution, or
        winding
        up of the affairs of the Company, unless such voluntary sale, lease, conveyance,
        exchange, or transfer shall be in connection with a plan of liquidation,
        dissolution, or winding up of the affairs of the Company.

       

      6.   Conversion.

       

      (a)   Right
        of Conversion.
        After
        the initial issuance of the Series F Preferred Stock each share of Series
        F
        Preferred Stock shall be convertible at the option of the holder thereof,
        at any
        time prior to the close of business on the fifth business day prior to the
        date
        fixed for redemption of such shares as herein provided, into such number
        of
        fully paid and nonassessable shares of Common Stock as is determined by dividing
        $1.00 by the conversion price, determined as hereinafter provided, in effect
        at
        the time of conversion for the Common Stock and then multiplying such quotient
        by each share of Series E Preferred Stock to be converted. For purposes of
        this
        resolution, the "Conversion Price" applicable per share of Common Stock shall
        initially be equal to $0.02 and shall be adjusted from time to time in
        accordance with the provisions of this Section 6.

       

      (b)   Conversion
        Procedures.
        Any
        holder of shares of Series F Preferred Stock desiring to convert such shares
        into Common Stock shall surrender the certificate or certificates evidencing
        such shares of Series F Preferred Stock at the office of the transfer agent
        for
        the Series F Preferred Stock, which certificate or certificates, if the Company
        shall so require, shall be duly endorsed to the Company or in blank, or
        accompanied by proper instruments of transfer to the Company or in blank,
        accompanied by irrevocable written notice to the Company that the holder
        elects
        so to convert such shares of Series F Preferred Stock and specifying the
        name or
        names (with address or addresses) in which a certificate or certificates
        evidencing shares of Common Stock are to be issued.

       

      
        
          
          

        

        
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      Subject
        to Section 6(c) hereof, no payments or adjustments in respect of
        accumulated and unpaid dividends on shares of Series F Preferred Stock
        surrendered for conversion or on account of any dividend on the Common Stock
        issued upon conversion shall be made upon the conversion of any shares of
        Series
        F Preferred Stock; provided, however, that to the extent the Board of Directors
        of the Company have declared prior to the date of conversion payment of any
        accumulated and unpaid dividends on shares of Series F Preferred Stock a
        holder
        of Series F Preferred Stock shall retain the right to receive such declared
        dividends notwithstanding the conversion of any shares of Series F Preferred
        Stock.

       

      The
        Company shall, as soon as practicable after such deposit of certificates
        evidencing share of Series F Preferred Stock accompanied by the written notice
        and compliance with any other conditions herein contained, deliver at such
        office of such transfer agent to the person for whose account such shares
        of
        Series F Preferred Stock were so surrendered, or to the nominee or nominees
        of
        such person, certificates evidencing the number of full shares of Common
        Stock
        to which such person shall be entitled as aforesaid, together with a cash
        adjustment in respect of any fraction of a share of Common Stock as provided
        in
        Section 6(d). Such conversion shall be deemed to have been made as
        of the
        date of such notice, compliance and surrender of the shares of Series F
        Preferred Stock to be converted, and the person or persons entitled to receive
        the Common Stock deliverable upon conversion of such Series F Preferred Stock
        shall be treated for all purposes as the record holder or holders of such
        Common
        Stock on such date.

       

      (c)   Adjustment
        of Conversion Price.
        The
        conversion price at which a share of Series F Preferred Stock is convertible
        into Common Stock shall be subject to adjustment from time to time as
        follows:

       

      (i)   Stock
        Dividends, Subdivisions, Reclassifications or Combinations.
        If this
        Corporation shall after the date of the filing of this Statement of
        Designation:

       

      (1)   declare
        a
        dividend or make a distribution on its Common Stock in shares of its Common
        Stock,

       

      (2)   subdivide
        or reclassify the outstanding shares of Common Stock into a greater number
        of
        shares, or

       

      (3)   combine
        or reclassify the outstanding Common Stock into a smaller number of
        shares,

       

      the
        conversion price at which a share of Series F Preferred Stock is convertible
        into Common Stock in effect at the time of the record date for such dividend
        or
        distribution or the effective date of such subdivision, combination or
        reclassification shall be proportionately adjusted so that the holder of
        any
        shares of Series F Preferred Stock surrendered for conversion after such
        date
        shall be entitled to receive the number of shares of Common Stock that such
        holder would have owned or been entitled to receive had such shares been
        converted immediately prior to such date. Successive adjustments in the
        conversion price for the Series F Preferred Stock shall be made whenever
        any
        events specified above shall occur.

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

         

      

      (ii)   Adjustment
        for Recapitalization, Reclassification or Substitution.
        If
        Common Stock issuable upon the conversion of shares of the outstanding Series
        F
        Preferred Stock is changed into the same or a different number of shares
        of any
        class or classes of stock, whether by recapitalization, reclassification
        or
        otherwise (other than a subdivision or combination of shares or stock dividend
        otherwise provided for in this Section 6(c)), then and in such event each
        holder
        of shares of Preferred Stock shall have the right thereafter, upon conversion,
        to receive the kind and amount of stock and other securities and property
        receivable upon such reorganization or other change in an amount equal to
        the
        amount that such holder would have been entitled to had it immediately prior
        to
        such recapitalization, reclassification or other change converted such shares,
        but only to the extent such shares are actually converted, all subject to
        further adjustments provided herein. As a part of such recapitalization,
        reclassification or substitution, provision shall be made by the Company
        so that
        such holder shall thereafter be entitled to receive such stock, securities
        and
        property.

       

      (iii)   Certificate
        of Adjustment.
        In any
        case of an adjustment or readjustment of the conversion price for the Series
        F
        Preferred Stock or the number of shares of Common Stock or other securities
        issuable upon conversion, the Company shall promptly compute such adjustment
        or
        readjustment in accordance with the provisions hereof and its chief financial
        officer shall prepare a certificate showing such adjustment or readjustment,
        and
        shall mail such certificate, by first class mail, postage prepaid, to the
        holder
        at the holder's address as shown in the Company's books. The certificate
        shall
        set forth such adjustment or readjustment, showing in detail the facts upon
        which such adjustment or readjustment is based, including a statement
        of:

       

      (1)   such
        adjustments and readjustments,

       

      (2)   the
        conversion price for the Series E Preferred Stock then in effect,
        and

       

      (3)   the
        type
        and amount, if any, of other property which at the time would be received
        upon
        conversion of such shares.

       

      (d)   Fractional
        Shares.
        No
        fractional shares of Common Stock shall be issued upon conversion of the
        outstanding Series F Preferred Stock. If more than one share of Series F
        Preferred Stock shall be surrendered for conversion at any one time by the
        same
        holder, the number of full shares of Common Stock issuable upon conversion
        thereof shall be computed on the basis of the aggregate number of shares
        of
        Preferred Stock so surrendered. Any portion of the outstanding Series F
        Preferred Stock surrendered for conversion which would otherwise result in
        a
        fractional share of Common Stock shall be redeemed for cash in an amount
        equal
        to the product of such fraction multiplied the market
        price per share of Common Stock (as determined by the Board of Directors
        or in
        any manner prescribed by the Board of Directors, which, so long as the Common
        Stock is quoted on The NASDAQ Stock Market, shall be the closing price for
        such
        stock (or the average of the reported closing bid and asked prices, if no
        sales
        were reported that day) as quoted on such exchange or system on the date
        of
        determination, as reported in the Wall
        Street Journal,
        or so
        long as the Common Stock is traded on the over-the-counter market, shall
        be the
        closing sale price as reported by such system at the close of business on
        the
        day of conversion (or the average of the reported closing bid and asked prices,
        if no sales were reported that day)). 

       

      
        
          
          

        

        
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      (e)   Reservation
        of Shares; Etc.
        The
        Company shall at all times reserve and keep available, free from preemptive
        rights out of its authorized and unissued stock, solely for the purpose of
        effecting the conversion of the Series F Preferred Stock, such number of
        shares
        of its Common Stock as shall from time to time be sufficient to effect the
        conversion of all shares of Series F Preferred Stock from time to time
        outstanding. If at any relevant time the number of authorized but unissued
        shares of Common Stock shall not be sufficient to effect the conversion of
        all
        the then outstanding shares of Series F Preferred Stock, the Company will
        use
        its reasonable efforts to forthwith take such corporate action as may be
        necessary to increase its authorized but unissued shares of Common Stock
        for
        issuance on conversion of such Series F Preferred Stock to such number of
        shares
        as shall be sufficient for such purposes. In the event the Company does not
        have, after taking into account all shares reserved for outstanding warrants,
        options other securities convertible into Common Stock, sufficient authorized
        but unissued shares of Common Stock, to allow for conversion of some or all
        of
        its shares of Series F Preferred Stock, the holders of such shares of Series
        F
        Preferred Stock shall not be entitled to convert such shares to Common Stock
        until such time as the Company has sufficient authorized but unissued shares
        of
        Common Stock to allow for conversion.

       

      (f)   Prior
        Notice of Certain Events.
        In
        case:

       

      (i)   the
        Company shall (1) declare any dividend (or any other distribution)
        on its
        Common Stock, other than (A) a dividend payable in shares of Common
        Stock
        or (B) a dividend payable in cash out of its retained earnings other
        than
        any special or nonrecurring or other extraordinary dividend or (2) declare
        or authorize a redemption or repurchase of the then-outstanding shares of
        Common
        Stock; or

       

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

       

      (iii)   of
        any
        reclassification of Common Stock (other than a subdivision or combination
        of the
        outstanding Common Stock, or a change in par value, or from par value to
        no par
        value; or from no par value to par value), or of any consolidation or merger
        to
        which the Company is a party and for which approval of any stockholders of
        the
        Company shall be required, or of the sale or transfer of all or substantially
        all of the assets of the Company or of any compulsory share exchange whereby
        the
        Common Stock is converted into other securities, cash or other property;
        or

       

      (iv)   of
        the
        voluntary or involuntary dissolution, liquidation or winding up of the
        Company;

       

      then
        the
        Company shall cause to be mailed to the holders of record of the Series F
        Preferred Stock, at their last addresses as they shall appear upon the stock
        transfer books of the Company, at least fifteen days prior to the later of
        the
        applicable record or effective date hereinafter specified, a notice stating
        (x) the date on which a record (if any) is to be taken for the purpose
        of
        such dividend, distribution, redemption, repurchase, rights or warrants or,
        if a
        record is not to be taken, the date as of which the holders of Common Stock
        of
        record to be entitled to such dividend, distribution, redemption, rights
        or
        warrants are to be determined or (y) the date on which such
        reclassification, consolidation, merger, sale, transfer, share exchange,
        dissolution, liquidation or winding up is expected to become effective, and
        the
        date as of which it is expected that holders of Common Stock of record shall
        be
        entitled to exchange their shares of Common Stock for securities, cash or
        other
        property deliverable upon such reclassification, consolidation, merger, sale,
        transfer, share exchange, dissolution, liquidation or winding up (but no
        failure
        to mail such notice or any defect therein or in the mailing thereof shall
        affect
        the validity of the corporate action required to be specified in such
        notice).

       

      
        
          
          

        

        
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      7.   Redemption.

       

      (a)   Optional
        Redemption.
        The
        shares of Series F Preferred Stock may be redeemed at the option of the Company,
        to the extent it has funds legally available for such redemption, at any
        time,
        in whole or in part at a redemption price per share, payable in cash, equal
        to
        $1.00 plus an amount equal to all accumulated and unpaid cash dividends thereon
        to the date of such redemption (the "Redemption
        Price"),
        whether or not declared.

       

      In
        the
        case of redemption of less than all of the then outstanding shares of Series
        F
        Preferred Stock, the Company shall effect such redemption pro rata.
        Notwithstanding the foregoing, the Company shall not redeem less than all
        of the
        shares of the Series F Preferred Stock at any time outstanding until all
        dividends accumulated and in arrears upon all shares of Series E Preferred
        Stock
        then outstanding for all dividend periods ending prior to the date of redemption
        been paid.

       

      (b)   Redemption
        Procedure.
        With
        respect to any redemption of shares of Series F Preferred Stock provided
        for in
        this Section 7, a notice of redemption of shares of Series F Preferred
        Stock (the "Redemption
        Notice")
        shall
        be given by first-class mail, postage prepaid, mailed at least 30 calendar
        days
        prior to the specified redemption date to each holder of the shares of Series
        F
        Preferred Stock to be redeemed, at such holder's address as the same appears
        on
        the register of the Company for the Series F Preferred Stock. Each Redemption
        Notice shall state and include (i) the Redemption Date, (ii) a
        statement either (A) that all of the holder's shares of Series F Preferred
        Stock are being redeemed or (B) the number of such shares to be redeemed
        from the holder (which number will be calculated based on the holder's pro
        rata
        ownership percentage of then outstanding shares of Series F Preferred Stock),
        (iii) the Redemption Price per share, and (iv) the place or
        places
        where certificates for such shares are to be surrendered for payment of the
        Redemption Price.

       

      (c)   Any
        Redemption Notice that is mailed as herein provided shall be conclusively
        presumed to have been duly given, whether or not the holder of the shares
        of
        Series F Preferred Stock receives such notice; and failure to give such notice
        by mail, or any defect in such notice, to the holders of any shares designated
        for redemption shall not affect the validity of the proceedings for the
        redemption of any other shares of Series F Preferred Stock.

       

      (d)   On
        or
        after the Redemption Date as stated in the Redemption Notice, the holders
        of
        shares of Series F Preferred Stock which have been called for redemption
        shall
        surrender certificates representing such shares to the Company at its principal
        place of business or as otherwise stated in the Redemption Notice, and thereupon
        the redemption price of such shares shall be paid by the Company in the manner
        specified in the Redemption Notice to the person whose name appears on such
        certificate or certificates as the owner thereof. If less than all the shares
        represented by any such surrendered certificate are redeemed, a new certificate
        shall be issued representing the unredeemed shares. In lieu of issuing any
        fractional interest in a share of Series F Preferred Stock that would otherwise
        be deliverable upon the redemption of less than all shares of Series F Preferred
        Stock, the Company shall pay to the holder of such share an amount in cash
        based
        upon $1.00 plus accumulated dividends.

       

      
        
          
          

        

        
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      (e)   Notice
        having been given as aforesaid, if, on the date fixed for redemption, funds
        necessary for the redemption shall be available therefor and shall have been
        deposited with a bank or trust company with irrevocable instructions and
        authority to pay the Redemption Price to the holders of the Series F Preferred
        Stock, then, notwithstanding that the certificates representing any shares
        so
        called for redemption shall not have been surrendered, dividends with respect
        to
        the shares so called shall cease to accumulate after the date fixed for
        redemption, such shares shall no longer be deemed outstanding, the holders
        thereof shall cease to be stockholders of the Company, and all rights whatsoever
        with respect to the shares so called for redemption (except the right of
        the
        holders to receive the Redemption Price without interest upon surrender of
        their
        certificates therefor) shall terminate. If funds legally available for such
        purpose are not sufficient for redemption of the Series F Preferred Stock
        which
        were to be redeemed, then Section 8 shall apply and the certificates
        representing shares not redeemed pursuant to Section 8 shall be deemed
        not
        to be surrendered, such shares shall remain outstanding, the right of the
        holder
        to receive payment of the Redemption Price for such shares shall terminate,
        and
        the right of holders of Series F Preferred Stock thereafter shall continue
        to be
        only those of a holder of shares of the Series F Preferred Stock.

       

      8.   Partial
        Payments.
        Upon an
        optional redemption by the Company, if at any time the Company does not pay
        amounts sufficient to redeem all shares of Series E Preferred Stock, then
        such
        funds which are paid shall be applied to redeem such shares of Series E
        Preferred Stock pro rata.

       

      9.   Shares
        to Be Retired.
        All
        shares of Series F Preferred Stock which shall have been issued and reacquired
        in any manner by the Company shall be restored to the status of authorized
        but
        unissued shares of preferred stock of the Company, without designation as
        to
        class or series.

       

      10.   Voting
        Rights.

       

      (a)   Subject
        to Section 10(b) below, the shares of Series F Preferred Stock shall not
        entitle
        the holder thereof to voting rights. The shares of Common Stock issuable
        upon
        conversion of the Series F Preferred Stock shall entitle the holder thereof
        to
        all voting rights provided to the Common Stock generally as a class under
        the
        Company's articles of incorporation or by law.

       

      (b)   Notwithstanding
        the foregoing, so long as any shares of Series F Preferred Stock are
        outstanding, the affirmative vote of at least a majority of the votes entitled
        to be cast by the holders of the Series F Preferred Stock (each such share
        being
        entitled to one vote), voting separately as a class, at the time outstanding,
        given in person or by proxy, either in writing without a meeting or by vote
        at
        any meeting called for the purpose shall be necessary for effecting or
        validating:

       

      
        
          
          

        

        
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      (i)   Any
        amendment, alteration or repeal of any of the provisions of the articles
        of
        incorporation or bylaws of the Company or this Statement of Designation that
        adversely affects the voting powers (as limited herein to those provided
        by
        Section 10(b)(i)-(iii)), rights or preferences of the holders of the Series
        F
        Preferred Stock; provided,
        however,
        that
        the amendment of the provisions of the articles of incorporation of the Company
        so as to authorize or create or to increase the authorized amount of any
        Parity
        Stock or any Junior Stock, (a) shall not be deemed to adversely affect
        the
        voting powers, rights or preferences of the holders of Series F Preferred
        Stock
        and (b) shall not in any case require a separate vote of the holders
        of
        Series F Preferred Stock; or 

       

      (ii)   A
        share
        exchange that affects the Series F Preferred Stock, a consolidation with
        or
        merger of the Corporation into another entity, or a consolidation with or
        merger
        of another entity into the Corporation, or the voluntary sale, lease,
        conveyance, exchange, or transfer (for cash, shares of stock, securities,
        or
        other consideration) of all or substantially all of the property or assets
        of
        the Company; or

       

      (iii)   The
        authorization or creation of any shares of any class of any security convertible
        into shares of any class ranking prior to or on parity with the Series E
        Preferred Stock in the distribution of assets on any liquidation, dissolution
        or
        winding up of the Company or in the payment of dividends;

       

      provided,
        however,
        that no
        such vote of the holders of Series F Preferred Stock shall be required if,
        at or
        prior to the time when such amendment, alteration or repeal is to take effect,
        or when the issuance of any such shares or convertible security is to be
        made,
        as the case may be, provision is made for the redemption of all shares of
        Series
        F Preferred Stock at the time outstanding in accordance with the terms
        hereof.

       

      FURTHER
        RESOLVED, that the form, terms and provisions of the Statement of Designation
        Establishing the Series F Preferred Stock of Positron Corporation, in the
        form
        reviewed by the directors together with such changes therein as may be approved
        by the Chairman, President, or any Vice President executing and filing with
        the
        Secretary of State of the State of Texas such Designation, such approval
        to be
        conclusively evidenced by the execution thereof by such officer, be and the
        same
        hereby is in all respects approved and adopted, and the Chairman, President
        or
        any Vice President of this Company be, and each of them acting individually,
        is
        hereby authorized to execute and file with the Secretary of State of the
        State
        of Texas, in the name and on behalf of this Company, such Statement of
        Designation;

       

      
        	 	 	 
	 	POSITRON
                CORPORATION
	 
 	 
 	 
 
	Dated:	By:  	 
	 	
                
Gary
                H. Brooks
	 	
                President

              

      

       

       

      
        
          
          

        

        
          -11-

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