Document:

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                                                                    Exhibit 10.2

                               EXCHANGE AGREEMENT

          THIS EXCHANGE AGREEMENT (the "Agreement") is made as of November 20,
2002, by and between Swissray International Inc., a Delaware corporation (the
"Company"), SWR Investments LLC, a Delaware limited liability company (the
"Purchaser") and each of the Persons listed on Exhibit A attached hereto (each,
a direct or indirect "Stockholder" and collectively the "Stockholders"). All
capitalized terms used herein but not otherwise defined shall have the meanings
set forth in the Securities Purchase Agreement (as defined below).

          WHEREAS, the Stockholders hold all of the outstanding Series C
Convertible Preferred Stock of the Company, par value $0.0001 per share (the
"Series C Preferred Stock");

          WHEREAS, the Company, the Subsidiaries, the Purchaser and each of the
Persons listed on Exhibit A attached thereto are parties to that certain
Securities Purchase Agreement (the "Securities Purchase Agreement"), dated as of
November 15, 2002;

          WHEREAS, the Company and the Stockholders desire to enter into an
agreement pursuant to which each of the Stockholders will exchange (i) the
shares of Series C Preferred Stock and shares of Common Stock (collectively, the
"Exchange Stock"), (ii) all existing debt obligations owed to such Stockholder
by the Company (the "Exchange Debt") and (iii) all expenses previously funded to
the Company by such Stockholder (the "Exchange Obligations" and together with
the Exchange Stock and the Exchange Debt, the "Exchange Consideration"), each as
set forth opposite such Stockholder's name on Exhibit A attached hereto in
exchange for shares of (i) Series D Redeemable Preferred Stock of the Company,
par value $0.0001 per share (the "Series D Preferred Stock") and (ii) Series H
Preferred Stock of the Company, par value $0.0001 per share (the "Series H
Preferred Stock") set forth opposite such Stockholder's name on Exhibit A
hereto;

          WHEREAS, the execution of this Agreement by the Stockholders is a
condition to the Securities Purchase Agreement and the closing of the
transactions contemplated thereby; and

          WHEREAS, the Stockholders and the Company each believe that it is in
their respective best interests to enter into this Agreement and consummate the
transactions contemplated hereby.

          NOW, THEREFORE, in consideration of the mutual promises and covenants
hereof, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, intending to be legally bound, the
parties hereby agree as follows:

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     1.   Securities.

     (a) At, and simultaneous with, the closing of the transactions contemplated
by the Securities Purchase Agreement (the "Closing"), the parties hereto shall
consummate the following transactions:

          (i)  each Stockholder will deliver to the Company the certificates
               representing the Exchange Stock set forth opposite such
               Stockholder's name on Exhibit A hereto, together with stock
               powers executed in favor of the Company;

          (ii) each Stockholder will deliver to the Company all instruments (if
               any) evidencing the Exchange Debt and Exchange Obligations to be
               cancelled by the Company; and

         (iii) the Company will deliver to each Stockholder the certificate
               representing the Series D Preferred Stock and the Series H
               Preferred Stock set forth opposite such Stockholder's name on
               Exhibit A attached hereto.

     (b) In connection with the purchase, sale and exchange of the Series D
Preferred Stock and the Series H Preferred Stock hereunder, and the execution,
delivery and performance of this Agreement and the other agreements contemplated
hereby to which it is a party (collectively the "Documents"), (x) the Company
represents and warrants to each Stockholder that (i) this Agreement and the
Documents to which it is a party constitute the legal, valid and binding
obligations of the Company, and are enforceable against the Company in
accordance with their respective terms (except as limited by general principles
of equity and bankruptcy) and (ii) the Series D Preferred Stock and Series H
Preferred have been duly and validly issued, and are fully paid and
non-assessable; and (y) each Stockholder represents and warrants to the Company
and the Purchaser that:

          (i)  the Series D Preferred Stock and the Series H Preferred Stock to
               be acquired by such Stockholder pursuant to this Agreement will
               be acquired for such Stockholder's own account and not with a
               view to, or intention of, distribution thereof in violation of
               any applicable securities laws, and the Series D Preferred Stock
               and the Series H Preferred Stock will not be disposed of in
               contravention of any such laws;

          (ii) each Stockholder is an "accredited investor" as defined under
               Rule 501 of Regulation D of the Securities Act of 1933, as
               amended (the "Securities Act");

         (iii) such Stockholder is sophisticated in business and financial
               matters and is able to evaluate the merits, risks and benefits of
               the investment in the Series D Preferred Stock and the Series H
               Preferred Stock;

          (iv) such Stockholder is able to bear the economic risk of its
               investment in the Series D Preferred Stock and the Series H
               Preferred Stock for an indefinite period of time because the
               Series D Preferred Stock and the Series H Preferred Stock have
               not been registered under any applicable securities

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               laws and, therefore, cannot be sold unless subsequently
               registered under all applicable securities laws or an exemption
               therefrom is available;

          (v)  such Stockholder has had an opportunity to ask questions and
               receive answers concerning the terms and conditions of the
               offering of the Series D Preferred Stock and the Series H
               Preferred Stock and has had full access to such other information
               concerning the Company as he or it has requested;

          (vi) such Stockholder's knowledge and experience in financial and
               business matters are such that the Stockholder is capable of
               evaluating the risks of making investments in the Company;

          (vii) such Stockholder specifically acknowledges and warrants that it
               has conducted its own independent evaluation, received
               independent legal advice and made its own analysis as it has
               deemed necessary, prudent or advisable in order to make its
               determination and decision to enter into this Agreement and the
               other Documents, to make the covenants, representations,
               warranties and promises provided for herein and therein and to
               consummate the transactions contemplated by this Agreement and
               the Securities Purchase Agreement. Such Stockholder's
               determination to enter into this Agreement and the other
               Documents and to consummate the transactions contemplated by this
               Agreement and the Securities Purchase Agreement, has been, and in
               each case will be, made by such Stockholder relying entirely upon
               its own independent evaluation, judgment and analysis and that of
               its legal counsel and other advisors, regarding the proper,
               complete and agreed upon consideration for and language for this
               Agreement and the other Documents and the Securities Purchase
               Agreement, without reliance upon any oral or written
               representations and warranties of any kind or nature (other than
               specific representations contained in this Agreement) by any
               other Person (including, without limitation, the Purchaser and
               its and their respective officers, directors, members, agents
               partners, employees, equityholders, legal or other advisors and
               its and their Affiliates) and independent of any statements or
               opinions as to the advisability of such exchange or investments
               or as to the properties, business, prospects or condition
               (financial or otherwise) of the Company or any of its
               subsidiaries, which may have been made or given by any such other
               Person, and such is not being given or relying upon any legal,
               accounting or tax advice by the Company, the Purchaser or its and
               their officers, directors, members, agents partners, employees,
               equityholders legal or other advisors or its and their
               Affiliates;

         (viii) such Stockholder has freely and independently bargained for
               this Agreement and such other Documents at arms-length and such
               Stockholder is receiving reasonably equivalent value and fair
               consideration;

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          (ix) no statements, representations, promises, warranties, threats or
               inducements of any kind have been made outside this Agreement and
               the other Documents that have influenced or induced such
               Stockholder to execute this Agreement and such other Documents to
               which it is a party; and

          (x)  each of this Agreement and the other Documents constitutes the
               legal, valid and binding obligation of such Stockholder,
               enforceable in accordance with its terms (except as limited by
               general principles of equity and bankruptcy).

     (c) In connection with the exchange of the Exchange Consideration
hereunder, each Stockholder also represents and warrants to the Company and the
Purchaser that such Stockholder owns beneficially and of record and has good and
marketable title to the Exchange Consideration set forth opposite such
Stockholder's name on Exhibit A attached hereto. Each Stockholder further
represents and warrants that neither such Stockholder nor any of its Affiliates
has received any payments with respect to or in exchange for securities of the
Company. At the Closing, such Stockholder shall transfer to the Company good and
marketable title to the Exchange Consideration to be transferred by such
Stockholder, free and clear of all Liens, options, proxies, voting trusts or
agreements and other restrictions. There are no statutory or contractual
preemptive rights, anti-dilution protection or rights of refusal that have not
been waived with respect to the exchange of such Exchange Stock hereunder. After
giving effect to the consummation of this Agreement and consummation of the
transactions contemplated by the Securities Purchase Agreement, each Stockholder
shall not (a) have any right, title or interest in any debt or equity securities
of the Company or securities convertible into or exchangeable for, directly or
indirectly, equity securities of the Company, other than the shares of Series D
Preferred Stock and the Series H Preferred Stock listed across from such
Stockholder's name on Exhibit A attached hereto; and/or (b) be a party to or
bound by any agreement, document, instrument or arrangement with the Company or
any Affiliate thereof, other than this Agreement.

     2. Stockholder Release. Each Stockholder, on its behalf and on behalf of
its Affiliates and each of its and their respective representatives, agents,
successors, assigns, officers, directors, shareholders, members, partners,
employees, attorneys, principals and each of them (collectively, the
"Stockholder Releasing Parties"), does hereby consent to the execution, delivery
and performance of this Agreement and the consummation of the transactions
contemplated hereby and by the Securities Purchase Agreement and does hereby
release absolutely and forever compromise, settle and discharge each of the
Company and the Purchaser, and each of its respective Affiliates, subsidiaries,
representatives, agents, successors, assigns, officers, directors, shareholders,
members, managers, principals, partners, employees, attorneys and principals,
past and present and their respective heirs, successors and assigns
(collectively, the "Stockholder Released Parties"), from any and all rights,
claims (including, without limitation, claims for diminution in value,
compensatory damages, liquidated damages, punitive or exemplary damages or any
special, indirect or consequential damages or other damages), charges,
controversies, cross-claims, counter-claims, demands, covenants, judgments,
debts, accounts, reckoning, obligations, actions and causes of action, fees,
costs, including, without limitation, claims for costs and attorneys' fees and
other liabilities of every kind and nature whatsoever in law or equity, whether
in administrative proceedings or in arbitration and whether

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known or unknown, suspected or unsuspected, material or immaterial, absolute or
contingent, direct or indirect or nominally or beneficially possessed or claimed
against the Stockholder Released Parties (collectively, "Actions") which the
Stockholder Releasing Parties have, or ever had, owned or held, or hereafter
can, shall or may have against any of the Stockholder Released Parties arising
out of, relating to, in connection with, caused by, or by virtue of, any events,
facts or circumstances through the date hereof, whether pursuant to the
Terminated Contracts, as a holder of debt or equity of the Company, in
connection with the transactions contemplated hereby or by the other Documents,
in connection with any prior transactions or otherwise. Each Stockholder, on its
behalf and on behalf of each Stockholder Releasing Party, expressly waives all
rights afforded by any statute which limits the effect of a release with respect
to unknown claims and acknowledges that he understands the significance of this
release of unknown claims and waiver of statutory protection against a release
of unknown claims. Each Stockholder understands and acknowledges (for itself and
all the Stockholder Releasing Parties) that it may discover facts different
from, or in addition to, those which it knows or believes to be true with
respect to the claims released herein, and agrees that this release shall be and
remain effective in all respects notwithstanding any subsequent discovery of
different and/or additional facts. Should any Stockholder Releasing Parties
discover that any fact relied upon in entering into this release was untrue, or
that any fact was concealed, or that an understanding of the facts or law was
incorrect, no Stockholder Releasing Parties shall be entitled to any relief as a
result thereof, and each Stockholder surrenders (for itself and all the
Stockholder Releasing Parties) any rights it might have to rescind this release
on any ground. This release is intended to be and is final and binding
regardless of any claim of misrepresentation, promise made with the intention of
performing, concealment of fact, mistake of law or fact, or any other
circumstances whatsoever. Each Stockholder, on behalf of itself and the other
Stockholder Releasing Parties, hereby warrants and represents that there has
been no assignment, conveyance, encumbrance, hypothecation, pledge or other
transfer of any interest or any matter covered by this release. If, for any
reason, any court of competent jurisdiction shall hold by final non-appealable
order that any Action purported to be released hereby is not so released, then
this release shall nonetheless be and remain effective with respect to each and
every other Action released hereby. Each Stockholder, on its behalf and on
behalf of each Stockholder Releasing Party, acknowledges and agrees that this
waiver is an essential and material term of this Agreement.

     3. Company Release. Except with respect to the Non-Released Claims (as
defined below), the Company, on its behalf and on behalf of its Affiliates prior
to the date hereof and each of its and their respective representatives, agents,
successors, assigns, officers, directors, shareholders, members, partners,
employees, attorneys, principals and each of them (collectively, the "Company
Releasing Parties"), does hereby consent to the execution, delivery and
performance of this Agreement and the consummation of the transactions
contemplated hereby and by the Securities Purchase Agreement and does hereby
release absolutely and forever compromise, settle and discharge each of the
Stockholders, the Purchaser, and each of their respective Affiliates,
subsidiaries, representatives, agents, successors, assigns, officers, directors,
shareholders, members, managers, principals, partners, employees, attorneys and
principals, past and present and their respective heirs, successors and assigns
(collectively, the "Company Released Parties"), from any and all Actions which
the Company Releasing Parties have, or ever had, owned or held, or hereafter
can, shall or may have against any of the Company Released Parties arising out
of, relating to, in connection with, caused by, or by virtue of, any events,
facts or circumstances through the date hereof, whether pursuant to the
Terminated Contracts, as a

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holder of debt or equity of the Company, in connection with the transactions
contemplated hereby or by the other Documents, in connection with any prior
transactions or otherwise. The Company, on its behalf and on behalf of each
Company Releasing Party, expressly waives all rights afforded by any statute
which limits the effect of a release with respect to unknown claims (that do not
constitute Non-Released Claims) and acknowledges that it understands the
significance of this release of unknown claims and waiver of statutory
protection against a release of unknown claims. The Company understands and
acknowledges (for itself and all the Company Releasing Parties) that it may
discover facts different from, or in addition to, those which it knows or
believes to be true with respect to the claims released herein, and agrees that
this release shall be and remain effective in all respects notwithstanding any
subsequent discovery of different and/or additional facts. Should any Company
Releasing Parties discover that any fact relied upon in entering into this
release was untrue, or that any fact was concealed, or that an understanding of
the facts or law was incorrect, no Company Releasing Parties shall be entitled
to any relief as a result thereof, and the Company surrenders (for itself and
all the Company Releasing Parties) any rights it might have to rescind this
release on any ground. This release is intended to be and is final and binding
regardless of any claim of misrepresentation, promise made with the intention of
performing, concealment of fact, mistake of law or fact, or any other
circumstances whatsoever. The Company, on its behalf and on behalf of each other
Company Releasing Party, hereby warrants and represents that there has been no
assignment, conveyance, encumbrance, hypothecation, pledge or other transfer of
any interest or any matter covered by this release. If, for any reason, any
court of competent jurisdiction shall hold by final non-appealable order that
any Action purported to be released hereby is not so released, then this release
shall nonetheless be and remain effective with respect to each and every other
Action released hereby. The Company, on its behalf and on behalf of each Company
Releasing Party, acknowledges and agrees that this waiver is an essential and
material term of this Agreement. Notwithstanding anything contained herein or
elsewhere to the contrary, neither the Company nor any Company Releasing Party
is releasing any Company Released Party from or against (i) any Losses or other
Actions arising out or relating to any events, facts or circumstances for which
the Stockholders have agreed to indemnify the Purchaser pursuant to Section 9
below or (ii) any breaches by the Purchaser under the Securities Purchase
Agreement (collectively, the "Non-Released Claims"). Without limiting the
foregoing, and notwithstanding anything contained to the contrary herein, all
rights to indemnification as set forth in Section 9 below shall remain in full
force and effect and shall not be otherwise modified or affected by this Section
3.

     4. Restrictions on Transfer. No Stockholder shall sell, transfer, assign,
pledge, charge, encumber or otherwise dispose of (whether with or without
consideration and whether voluntarily or involuntarily or by operation of law)
(a "Transfer") any Stockholder Shares, now or hereinafter owned by Stockholder,
without the prior written consent of the Company's board of directors (the
"Board") (i) in its reasonable discretion, not to be unreasonably withheld for
so long as the Company has common stock quoted on the OTB or national or
regional stock market and (ii) in its sole discretion from and after such time
as the Company does not have any common stock quoted on the OTB or national or
regional stock market. Notwithstanding the foregoing, (x) a Stockholder may
Transfer shares of Company common stock (i) pursuant to Rule 144 as if an
affiliate of the Company for so long as the Company has common stock quoted on
the OTB or national or regional stock market or (ii) following a transaction in
which the Purchaser has Transferred greater than 40% of its Common Stock on an
as-if converted or exchanged and fully diluted basis; and (y) it shall be a
condition to any Transfer by a Stockholder

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of greater than 1% of any class of its Stockholder Shares (other than a Transfer
pursuant to clause (x) above) that its transferee agrees to be bound by Sections
1(b), 5 and 8 hereof as if originally a Stockholder party hereto. Without in any
way limiting the foregoing, each Stockholder agrees not to effect any public
sale or distribution (including sales pursuant to Rule 144) of any Stockholder
Shares, enter into a transaction which would have the same effect, or enter into
any swap, hedge or other arrangement that transfers, in whole or in part, any of
the economic consequences of ownership of such Stockholder Shares, whether any
such aforementioned transaction is to be settled by delivery of such securities
or other securities, in cash or otherwise, or publicly disclose the intention to
make any such offer, sale, pledge or disposition, or to enter into any such
transaction, swap, hedge or other arrangement (in each case, also "Transfer"),
in each case, during the period before and after the effective time of any
underwritten registration (except as part of such underwritten registration) in
which the Purchaser has agreed to be similarly bound. Each Stockholder hereby
agrees to execute any letters, agreements or other documents requested by the
Company or its underwriter with respect to such prohibitions on Transfers.

     5. Approved Sale.

     (a) Each Stockholder hereby agrees that if at any time the Board approves a
Sale of the Company (an "Approved Sale"), each Stockholder will vote for,
consent to, and raise no objections against such Approved Sale. If the Approved
Sale is structured (x) as a merger or consolidation, each such holder will waive
any dissenters rights, appraisal rights or similar rights in conjunction with
such merger or consolidation or (y) as a sale of equity, each such Stockholder
will agree to sell up to all of such Stockholder's Shares on the terms and
conditions approved by the Company, and (z) as a sale of assets, each such
Stockholder will vote in favor of any subsequent liquidation or other
distribution of the proceeds therefrom as approved by the Board. The Company and
each Stockholder will take all necessary or desirable actions in connection with
the consummation of the Approved Sale as requested by the Board, including the
execution of all agreements, documents and instruments in connection therewith
in the form presented by the Company.

     (b) Upon the consummation of the Approved Sale, each Stockholder
participating in such Approved Sale will receive the same portion of the
aggregate consideration available to be distributed to the stockholders of the
Company (in their capacity as such) that such Stockholders participating in such
sale (in their capacity as stockholders of the Company) would have received if
such aggregate consideration had been distributed by the Company in complete
liquidation pursuant to the rights and preferences set forth in the Company's
Certificate of Incorporation as in effect immediately before such Approved Sale
(a "Liquidation") (and, in the event of a sale of stock, assuming that the only
securities of the Company outstanding were those Stockholder Shares and other
shares of capital stock involved in such sale), and assuming that the holders of
convertible securities had converted their shares if by converting such holders
would have received more proceeds upon a Liquidation.

     (c) Each Stockholder will be obligated to join on a pro rata basis (applied
such that after giving effect thereto, the aggregate consideration paid to each
Stockholder would comply with the provisions of Section 5(b)) in any purchase
price adjustments, indemnification or other obligations that the sellers of
Stockholder Shares are required to provide in connection with the

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Approved Sale (other than any such obligations that relate solely to a
particular Stockholder, such as indemnification with respect to representations
and warranties given by a Stockholder regarding such Stockholder's title to and
ownership of Stockholder Shares, in respect of which only such Stockholder will
be liable); provided that no holder will be obligated in connection with such
indemnification or other obligations with respect to an amount in excess of the
consideration received by such holder in connection with such transfer.

     (d) If the Company enters into a negotiation or transaction for which Rule
506 (or any similar rule then in effect) promulgated by the Securities and
Exchange Commission may be available with respect to such negotiation or
transaction (including a merger, consolidation or other reorganization), the
Stockholder will, at the request of the Board, appoint a Stockholder
representative (as such term is defined in Rule 501) reasonably acceptable to
the Board. If any Stockholder appoints a Stockholder representative designated
by the Board, the Company will pay the fees of such Stockholder representative,
but if any holder of Stockholder declines to appoint the Stockholder
representative designated by the Board such holder will appoint another
Stockholder representative, and such holder will be responsible for the fees of
the Stockholder representative so appointed.

     (e) If any Stockholder fails to deliver any certificates representing its
Stockholder Shares as required by this Section 5, such Stockholder (i) will not
be entitled to the consideration that such Stockholder would otherwise receive
in the Approved Sale until such Stockholder cures such failure by providing the
Company with reasonably satisfactory evidence (an affidavit of the registered
holder shall be satisfactory) of the ownership and the loss, theft, destruction
or mutilation of any certificate evidencing his Stockholder Shares, and
indemnify in respect thereto which is reasonably satisfactory to the Company
(provided that, after curing such failure, such holder will be so entitled to
such consideration without interest), (ii) will be deemed, for all purposes, no
longer to be a Stockholder of the Company and will have no voting rights,
(iii) will not be entitled to any dividends or other distributions declared
after the Approved Sale with respect to the Stockholder Shares held by such
Stockholder, (iv) will have no other rights or privileges granted to
Stockholders under this or any future agreement, and (v) in the event of
liquidation of the Company, such Stockholder's rights with respect to any
consideration that such holder would have received if such holder had complied
with this Section 5, if any, will be subordinate to the rights of any equity
holder.

     (f) In order to secure each Stockholder's obligation to vote its
Stockholder Shares and other voting securities of the Company in accordance
with, and to take the other actions required by, the provisions of this Section
5 and of Section 8, each Stockholder hereby appoints the Purchaser as its true
and lawful proxy and attorney-in-fact, with full power of substitution, to vote
all of its Stockholder Shares and other voting securities of the Company for the
matters expressly provided for in this Section 5. The Purchaser may exercise the
irrevocable proxy granted to it hereunder at any time any Stockholder fails to
comply with the provisions of this Section 5. The proxies and powers granted by
each Stockholder pursuant to this Section 5(f) are coupled with an interest and
are given to secure the performance of such Stockholder's obligations under this
Section 5. Such proxies and powers shall be irrevocable and shall survive the
death, incompetency, disability or bankruptcy of such Stockholder and the
subsequent holders of its Stockholder Shares.

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     6. Stockholder Participation Rights.

     (a) At least 15 days before a Transfer (other than pursuant to Section 5, a
Public Sale or a Permitted Transfer) by the Purchaser of any shares of Common
Stock, the Purchaser will deliver a written notice (the "Type 1 Sale Notice") to
the Company and Hillcrest Avenue, LLC ("Hillcrest"), specifying the number of
shares of Common Stock to be transferred by the Purchaser and the price and
other material terms and conditions of the proposed Transfer, if known (or
attaching the agreement containing such terms and conditions). In addition, if
the Purchaser still owns shares of convertible preferred stock and the Purchaser
enters into an agreement or series of transactions to Transfer greater than 40%
of its Common Stock on an as-if converted or exchanged and fully diluted basis,
the Purchaser shall also deliver a written notice (the "Type 2 Sale Notice";
each of the Type 1 Sale Notice and Type 2 Sale Notice, a "Sale Notice") to the
Company and Hillcrest, specifying in the material terms and conditions of the
proposed Transfer, including, without limitation, the price which shall be
allocated to Common Stock (or attaching the agreement containing such terms and
conditions). The Purchaser will not consummate such proposed Transfer until at
least 10 days after the delivery of a Sale Notice, unless the parties to the
Transfer have been finally determined pursuant to this Section 6 prior to the
expiration of the 15-day period. In the event that any Stockholder holds any
shares of Common Stock or of Series H Preferred Stock, such Stockholder may
elect to participate in the contemplated Transfer by delivering written notice
to the Purchaser within 10 days after delivery of a Sale Notice. If any such
Stockholder has elected to participate in such Transfer (each a "Participating
Stockholder"), then the Purchaser and each Participating Stockholder will be
entitled to transfer in the contemplated Transfer, at the same price and on the
same terms specified in the Sale Notice with respect to shares of Common Stock
and of Series H Preferred Stock, a number of shares of Common Stock and Series H
Preferred Stock, equal to the number of shares of Common Stock to be transferred
in the contemplated Transfer (or allocated in the contemplated Transfer if a
Type 2 Sale Notice) multiplied by a fraction, the numerator of which is (A) the
number of shares of Common Stock and of Series H Preferred Stock held by such
Participating Stockholder at such time, and the denominator of which is (B) the
aggregate number of shares of Common Stock on an as-if converted or exchanged
and fully diluted basis.

     (b) The Purchaser shall use its reasonable efforts to obtain the agreement
of the prospective transferee(s) to the participation of the Participating
Stockholders in any contemplated Transfer, and the Purchaser shall not Transfer
any shares of Common Stock or, as applicable, shares of convertible preferred
stock, to the prospective transferee(s) unless (A) the prospective transferee(s)
agrees to allow the participation of the Participating Stockholders at the same
price and on the same terms as specified in the Sale Notice, or (B) the
Purchaser agrees to purchase the number of shares of Common Stock and/or of
Series H Preferred Stock that any Participating Stockholder would have been
entitled to transfer pursuant to this Section 6 at the same price and on the
same terms as specified in the Sale Notice. In furtherance of the foregoing,
each Participating Stockholder will take all necessary or desirable actions
requested by the Purchaser in connection with the consummation of such Transfer,
including executing all agreements, documents, and instruments in connection
therewith in the form presented by the Purchaser. If, in response to the Sale
Notice, there are no Participating Stockholders, then the Purchaser will be
entitled to Transfer to the prospective transferee(s) specified in the Sale
Notice the number of shares of Common Stock specified in the Sale Notice on the
terms and conditions specified therein.

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     (c) Each Stockholder Transferring securities pursuant to this Section 6
will pay its pro rata share (based on the number of shares of Common Stock
and/or of Series H Preferred Stock to be transferred by such Stockholder) of the
expenses incurred by the Stockholders in connection with such Transfer and will
be obligated to participate severally on a pro rata basis (based on the number
of shares of Common Stock to be sold) in any indemnification or other
obligations that the Purchaser agrees to provide in connection with such
Transfer (other than any such obligations that relate solely to a particular
Stockholder, such as indemnification with respect to representations and
warranties given by a Stockholder regarding such Stockholder's title to and
ownership of shares of Common Stock or of Series H Preferred Stock, in respect
of which only such Stockholder will be liable).

     (d) Notwithstanding anything to the contrary in any other provision of this
Agreement, the restrictions contained in this Section 6 shall not apply to any
(i) Transfer of shares of Common Stock by the Purchaser to or among any of its
Affiliates or (ii) Transfer of less than 5% of the Common Stock held by the
Purchaser at such time (each a "Permitted Transfer").

     7. Limited Preemptive Right.

     (a) If the Company authorizes the issuance or sale of any New Securities to
the Purchaser or any Affiliates of Purchaser, the Company shall first offer to
sell to each Stockholder a portion of such stock or securities equal to the
quotient determined by dividing (1) the number of shares of Common Stock held by
such holder at such time on an as-if converted or exchanged and fully diluted
basis by (2) the total number of shares of Common Stock then issued and
outstanding immediately prior to such issuance on an as-if converted or
exchanged and fully diluted basis. Each Stockholder shall be entitled to
purchase such stock or securities on the same terms as such stock or securities
are to be offered to Purchaser or such Affiliates; provided that if the
Purchaser is required to also purchase other securities of the Company, the
Stockholders exercising their rights pursuant to this paragraph shall also be
required to purchase the same strip of securities (on the same terms and
conditions) that Purchaser or such Affiliates are required to purchase. Each
Stockholder will take all necessary or desirable actions in connection with the
consummation of the transactions contemplated by this Section 7 as reasonably
requested by the Board, including the execution of all agreements, documents and
instruments in connection therewith in the form presented by the Company.

     (b) In order to exercise its purchase rights hereunder, a Stockholder must
within 15 days after receipt of written notice from the Company describing the
stock or securities being offered, the purchase price thereof, the payment terms
and such holder's percentage allotment deliver a written notice to the Company
describing its election hereunder.

     (c) Upon the expiration of the offering period described above, the Company
shall be entitled to sell such stock or securities which the Stockholders have
not elected to purchase during the 180 days following such expiration on terms
and conditions no more favorable to the purchasers thereof than those offered to
such holders. Any stock or securities offered or sold by the Company to the
Purchaser or such Affiliates after such 180-day period must be reoffered to the
Stockholders pursuant to the terms of this paragraph.

                                       10

<PAGE>

     (d) The provisions contained in this Section 7 shall terminate upon an
Approved Sale.

     8. Voting. Each Stockholder hereby agrees to vote all of its Stockholder
Shares and any other voting securities of the Company over which such
Stockholder has voting control to (a) elect all members to the Board as
designated by the Purchaser and (b) amend the Company's Certificate of
Incorporation so as to authorize (i) additional classes of capital stock and
(ii) additional shares of common stock so that there is sufficient common stock
duly and validly authorized and reserved for issuance upon conversion or
redemption of the Series E Preferred Stock, Series H Preferred Stock and any
other securities which are convertible or exercisable, directly or indirectly,
into common stock.

     9. Indemnification. A. Each Stockholder, jointly and severally, shall
indemnify the Purchaser, its Affiliates prior to Closing and each of its and
their respective officers, directors, stockholders, employees, agents,
representatives, successors, and assigns (but expressly excluding any
stockholders of the Company other than Purchaser, its Affiliates and
transferees)(collectively, the "Indemnified Parties") and hold each of them
harmless, on an as-incurred basis, from and against and pay on behalf of or
reimburse such Indemnified Parties in respect of any Loss or other Action which
any such Indemnified Party may suffer, sustain, or become subject to, as a
result of or relating to or arising out of (a) any stockholder claims (other
than such claims made by the Purchaser, its Affiliates and transferees not
pursuant to this Section 9) or other third-party claims as a result of relating
to, or arising out of, such Stockholder's or any of Stockholder Releasing
Party's investment or other interest in the Company on or prior to the Closing
Date, (b) any breach of any representation, warranty, covenant or agreement made
by such Stockholder contained in this Agreement or (c) any stockholder claims
(other than such claims made by the Purchaser, its Affiliates and transferees
not pursuant to this Section 9) or other third-party claims as a result of,
relating to, or arising out of, any actions or omissions of such Stockholder or
its respective officers, directors, stockholders, employees, agents,
representatives, or Affiliates in connection with such Stockholder's or any of
Stockholder Releasing Party's investment or other interest in the Company prior
to the Closing Date. The aggregate amount of all payments made by the
Stockholders in satisfaction of claims for indemnification pursuant to this
Section 9 shall not exceed $8,500,000. Effective as of the Closing, each
Stockholder hereby irrevocably covenants not to sue and otherwise refrain from,
directly or indirectly, asserting any claim or demand or commencing, instituting
or causing to be commenced, any proceeding of any kind (whether based on
contract, rights under the certificate of incorporation or otherwise) against
any Released Parties, based on any matter purported to be released pursuant to
Section 2 hereof. If, for any reason, a court of competent jurisdiction holds
that this Section 9 is unenforceable, each Stockholder shall indemnify the
Indemnified Parties to the maximum extent permitted by law. The provisions of
this Section 9 shall be in addition to, rather than in lieu of, and shall not
affect any rights or remedies the Indemnified Parties may have pursuant to law,
contract or otherwise. Notwithstanding anything contained to the contrary
herein, Losses shall be reduced to the extent that such Indemnified Party
actually recovers any insurance proceeds, other amounts from third parties, or
tax refunds in respect of such Losses or other tax benefits in respect of such
Losses that are actually realized and actually reduce the amount of tax paid by
the Company, in each case net of Liabilities incurred to recover such amounts
(including, without limitation, increased premiums). B. The Company shall
defend, indemnify the Company Released Parties and hold each of them harmless,
on an as-incurred basis, from and against, and pay on behalf of or reimburse
such Company Released Parties in

                                       11

<PAGE>

respect of any brokerage fees due to or payable to Houlihan, Lokey, Howard &
Zukin Capital, in connection with the transactions contemplated by this
Agreement and the Securities Purchase Agreement .

     10. Termination of Contracts. Each Stockholder, on behalf of itself and the
other Stockholder Releasing Parties, hereby agrees and consents to the
termination in their entirety of all agreements entered into prior to the
Closing Date to which a Stockholder Releasing Party and the Company or an
affiliate of the Company prior to the Closing Date is a party, including the
following agreements (collectively, the "Terminated Contracts"), in each case,
without any Liability to the Indemnified Parties:

     (a) Securities Purchase Agreement dated as of July 12, 2002 by and between
the Company and Kew Court, LLC ("Kew Court"); ---------

     (b) Exchange Agreement dated as of August 14, 2002 by and between the
Company and Hillcrest;

     (c) Exchange Agreement dated as of August 14, 2002 by and between the
Company and Kew Court;

     (d) Registration Rights Agreement dated as of December 29, 2000 by and
among the Company and Hillcrest;

     (e) Registration Rights Agreement dated as of August 14, 2002 by and among
the Company, Kew Court and Hillcrest;

     (f) Series 2002 Convertible Note Due December 31, 2003 dated July 12, 2002
issued to Kew Court;

     (g) Series 2002 Convertible Note Due December 31, 2003 dated August 30,
2002 issued to Kew Court;

     (h) Agreement dated December 29, 2001 between the Company. and Hillcrest;

     (i) Exchange Agreement dated December 29, 2000 between the Company and
Hillcrest; and

     (j) Letter Agreement dated August 14, 2002 between the Company. and
Hillcrest.

     11. Notices. Any notice provided for in this Agreement must be in writing
and must be either personally delivered, mailed by first class mail (postage
prepaid and return receipt requested), sent by facsimile (answerback confirmed)
or sent by reputable overnight courier service, if to the Stockholders, at the
respective addresses set forth on Exhibit A hereto, or such other address or to
the attention of such other person as the recipient party shall have specified
by prior written notice to the sending party. Any notice under this Agreement
will be deemed to have been given when so delivered or sent or, if mailed, five
days after deposit in the U.S. mail. Any notice to the Company shall be
delivered to the Company at the following address:

                                       12

<PAGE>

     Swissray International, Inc.
     c/o SWR Investments LLC
     101 Huntington Avenue
     Boston, MA 02199
     Attention:  Sara Lipscomb
     Facsimile:  (617) 859-1600

     12. General Provisions.

     (a) Certain Definitions.

     "Affiliate" of any particular Person means any other Person controlling,
controlled by or under common control with such particular Person, where
"control" means the possession, directly or indirectly, of the power to direct
the management and policies of a Person whether through the ownership of voting
securities, contract or otherwise.

     "Common Stock" means the Company's common stock, par value $0.0001 per
share.

     "Liability" means, with respect to any Person, any liability, obligation,
debt, deficiency, tax, penalty, claim, charge, investigation, complaint, cause
of action or other loss, cost or expense of any kind or nature of such Person of
any kind, character or description, whether known or unknown, absolute or
contingent, accrued or unaccrued, liquidated or unliquidated, secured or
unsecured, joint or several, due or to become due, vested or unvested,
executory, determined, determinable or otherwise.

     "Lien" or "Liens" means any mortgage, pledge, security interest,
encumbrance, lien or charge of any kind (including, without limitation, any
conditional sale or other title retention agreement or lease in the nature
thereof, any sale of receivables with recourse against such Person, any of its
subsidiaries or any Affiliate, any filing or agreement to file a financing
statement as debtor under the Uniform Commercial Code or any similar statute
other than to reflect ownership by a third party of property leased to such
Person under a lease which is not in the nature of a conditional sale or title
retention agreement, or any subordination arrangement in favor of another Person
(other than any subordination arising in the ordinary course of business).

     "Loss" means, with respect to any Person, any damage, liability, diminution
in value, demand, claim, action, cause of action, cost, damage, deficiency, tax,
penalty, fine or other loss or expense, whether or not arising out of a third
party claim, including all interest, penalties, reasonable attorneys' fees and
expenses and all amounts paid or incurred in connection with any action, demand,
proceeding, investigation or claim by any third party (including any
governmental entity or any department, agency or political subdivision thereof)
against or affecting such Person or which, if determined adversely to such
Person, would give rise to, evidence the existence of, or relate to, any other
Loss and the investigation, defense or settlement of any of the foregoing.

     "New Securities" shall mean (i) any Common Stock or other capital stock of
the Company (including, without limitation, Series D Preferred Stock, Series E
Preferred Stock,

                                       13

<PAGE>

Series F Preferred Stock, Series G Preferred Stock and Series H Preferred
Stock), whether now authorized or not, and (ii) rights, options or warrants to
purchase securities described in clause (i) above and (iii) securities of any
type whatsoever which are, or may become, convertible into securities described
in clauses (i) or (ii) above; provided, however, that the term "New Securities"
does not include: (i) securities issued pursuant to the Securities Purchase
Agreement (including, without limitation, pursuant to Section 1.4 and Section
7.5 thereof) (ii) securities offered to the public pursuant to a registration
statement filed by the Company (and, in the case of rights, options or warrants,
the securities issued or issuable upon exercise thereof and, if applicable, the
Common Stock issued or issuable upon conversion of such securities);
(iii) securities issued for the acquisition of another business by the Company
by merger, purchase of substantially all the assets of such business or another
reorganization resulting in the ownership by the Company of not less than a
majority of the voting power of such business (and, in the case of rights,
options or warrants, the securities issued or issuable upon exercise thereof
and, if applicable, the Common Stock issued or issuable upon the conversion of
such securities); (iv) securities issued to directors or employees of or
consultants to the Company pursuant to an equity incentive plan, stock option
plan, employee stock purchase plan, restricted stock plan or other employee
stock plan or agreement or otherwise, in all cases approved by the Board (and,
in the case of rights, options or warrants, the securities issued or issuable
upon exercise thereof and, if applicable, the Common Stock issued or issuable
upon the conversion of such securities); (v) securities issued in connection
with an equipment lease, commercial loan, or research, development or licensing
agreement or other similar business transaction, in all cases approved by the
Board (and, in the case of rights, options or warrants, the securities issued or
issuable upon exercise thereof and, if applicable, the Common Stock issued or
issuable upon the conversion of such securities); and (vi) securities issued as
a result of any stock split, stock dividend, capital reorganization,
recapitalization, or reclassification of the Company's Common Stock,
distributable on a pro rata basis to all holders of the Company's Common Stock.

          "Person" means an individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization and a governmental entity or any
department, agency or political subdivision thereof.

          "Public Sale" means any sale of securities to the public pursuant to
an offering registered under the Securities Act or to the public through a
broker, dealer or market maker pursuant to the provisions of Rule 144 adopted
under the Securities Act (or any similar provision then in force).

          "Sale of the Company" means any transaction or series of transactions
pursuant to which any Person or group of related Persons (other than the
Purchaser and/or its Affiliates) acquire (i) equity securities of the Company
possessing the voting power under normal circumstances to elect a majority of
the Company's board of directors, or (ii) all or substantially all of the
Company's assets determined on a consolidated basis (in either case, whether by
merger, consolidation, sale or transfer of the Company's equity securities, or
sale or transfer of the Company's consolidated assets or otherwise).

          "Stockholder Shares" means (i) any capital stock of the Company owned,
purchased or otherwise acquired by any Stockholder (including, without
limitation, the Common

                                       14

<PAGE>

Stock, the Series D Preferred Stock and the Series H Preferred Stock) whether
on, before or after the date hereof, (ii) any warrants, options, or other rights
to subscribe for or to acquire, directly or indirectly, capital stock of the
Company, whether or not then exercisable or convertible, (iii) any stock, notes,
or other securities which are convertible into or exchangeable for, directly or
indirectly, capital stock of the Company, whether or not then convertible or
exchangeable, and (iv) any capital stock of the Company issued or issuable upon
the exercise, conversion, or exchange of any of the securities referred to in
clauses (i) through (iii) above, and (v) any securities issued or issuable
directly or indirectly with respect to the securities referred to in clauses
(i) through (iv) above by way of stock dividend or stock split or in connection
with a combination of shares, recapitalization, reclassification, merger,
consolidation, or other reorganization.

     (b) Consent. Each Stockholder hereby consents to all of the transactions
contemplated by the Securities Purchase Agreement, including, without limitation
the authorization and issuance of the Series D Preferred Stock, Series E
Preferred Stock, Series F Preferred Stock, Series G Preferred Stock, Series H
Preferred Stock and Series I Preferred Stock and the filing of the Preferred
Designation.

     (c) Acknowledgement. Each of the Company and the Stockholder acknowledge
that the Purchaser has retained Kirkland & Ellis to act as their counsel and
representative in connection with the transactions contemplated hereby and by
the other Documents and that Kirkland & Ellis has not acted as counsel or
representative for the Company or any Stockholder in connection with the
transactions contemplated hereby or contemplated by the other Documents and that
neither the Company nor any of the Stockholders has the status of a client of
Kirkland & Ellis for conflict of interest or any other purposes as a result
thereof.

     (d) Expenses. The Company agrees to pay up to an aggregate of $25,000 of
reasonable out-of-pocket fees and expenses incurred by the Stockholders in
connection with the transactions contemplated hereby and by the Securities
Purchase Agreement.

     (e) Fiduciary Duties. The Company acknowledges that the Board has certain
fiduciary duties pursuant to the General Corporation Law of the State of
Delaware, which may include the duties of care and loyalty relating to
transactions with Purchaser or other interested parties.

     (f) Survival of Representations and Warranties. All representations and
warranties contained herein or made in writing by any party in connection
herewith shall survive the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby, regardless of any
investigation made by any Person and shall continue in full force and effect
until the fifth anniversary of the Closing Date.

     (g) Severability. Whenever possible, each provision of this Agreement will
be interpreted in such a manner as to be effective and valid under applicable
law, but if any provision of this Agreement is held to be invalid, illegal or
unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or any other jurisdiction, but this Agreement will be
reformed,

                                       15

<PAGE>

construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision had never been contained herein.

     (h) Complete Agreement. This Agreement, those documents expressly referred
to herein and other documents of even date herewith embody the complete
agreement and understanding among the parties and supersede and preempt any
prior understandings, agreements or representations by or among the parties,
written or oral, which may have related to the subject matter hereof in any way.

     (i) Counterparts. This Agreement may be executed in separate counterparts,
each of which is deemed to be an original and all of which taken together
constitute one and the same agreement.

     (j) Successors and Assigns. Except as otherwise provided herein, this
Agreement shall bind and inure to the benefit of and be enforceable by the
Stockholders, the Purchaser, the Company and their respective successors and
assigns (including subsequent holders of Series D Preferred Stock and Series H
Preferred Stock); provided that the rights and obligations of the Stockholders
under this Agreement shall not be assignable except in connection with a
permitted Transfer pursuant to Section 4 hereof.

     (k) Choice of Law. The construction, validity, enforcement and
interpretation of this agreement and the exhibits and schedules hereto shall be
governed by, and construed in accordance with, the laws of the State of
Delaware, without giving effect to any choice of law or conflict of law rules or
provisions (whether of the State of Delaware or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the State
of Delaware.

     (l) Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT HEREBY WAIVES, TO
THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LITIGATION IN ANY
COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS AGREEMENT OR
ANY ANCILLARY AGREEMENT OR THE VALIDITY, PROTECTION, INTERPRETATION, COLLECTION
OR ENFORCEMENT THEREOF.

     (m) Equitable Relief. Each of the parties to this Agreement, and the
Purchaser, will be entitled to enforce its rights under this Agreement
specifically, to recover damages and costs (including attorney's fees) caused by
any breach of any provision of this Agreement and to exercise all other rights
existing in its favor. The parties hereto agree and acknowledge that money
damages may not be an adequate remedy for any breach of the provisions of this
Agreement and that any party, and the Purchaser, may in its sole discretion
apply to any court of law or equity of competent jurisdiction (without posting
any bond or deposit) for specific performance and/or other injunctive relief in
order to enforce or present any violations of the provisions of this Agreement.

     (n) Amendment and Waiver. The provisions of this Agreement may be amended
and waived only with the prior written consent of the Company, the Stockholders
and the Purchaser.

                                       16

<PAGE>

     (o) Further Assurances. Each Stockholder shall execute and deliver such
further instruments, documents and agreements, and take such additional action
as the Company or the Purchaser may reasonably request to achieve or further the
purposes of this Agreement.

     (p) No Strict Construction. The parties hereto have participated jointly in
the negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties hereto, and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of the authorship
of any of the provisions of this Agreement.

     (q) Delivery by Facsimile. This Agreement and any amendments hereto, to the
extent signed and delivered by means of a facsimile machine, shall be treated in
all manner and respects as an original agreement or instrument and shall be
considered to have the same binding legal effect as if it were the original
signed version thereof delivered in person. At the request of any party hereto,
each other party hereto shall reexecute original forms thereof and deliver them
to all other parties. No party hereto shall raise the use of a facsimile machine
to deliver a signature or the fact that any signature was transmitted or
communicated through the use of a facsimile machine as a defense to the
formation or enforceability of a contract and each such party forever waives any
such defense.

                                    * * * * *

                                       17

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Exchange
Agreement on the date first above written.

                                        COMPANY:

                                        SWISSRAY INTERNATIONAL, INC.

                                        By:  /s/ Rudy G. Laupper
                                             --------------------
                                        Its: Chairman & President

                                        PURCHASER:

                                        SWR INVESTMENTS LLC

                                        By:  /s/ Paul M. Spinali
                                             -------------------
                                        Its: President

                                      STOCKHOLDERS:

                                        HILLCREST AVENUE LLC

                                        By:  Illegible
                                             -----------------------------------
                                        Its:

                                        KEW COURT LLC

                                        By:  Illegible
                                             -----------------------------------
                                        Its:

<PAGE>

                                                                       Exhibit A
<TABLE>
<CAPTION>
                                           Shares of                                                      Shares of
                           Shares of       Series C                                   Shares of Series     Series H       Shares of
                          Common Stock     Preferred      Outstanding      Exchange      D Preferred      Preferred     Common Stock
    Name and Address       Exchanged    Stock Exchanged  Debt Exchanged  Obligations   Stock Received   Stock Received     Owned
    ----------------      ------------  ---------------  --------------  -----------  ----------------  --------------  ------------
<S>                       <C>           <C>              <C>             <C>          <C>               <C>             <C>
Hillcrest Avenue LLC       8,676,376          2,830                                         5,373.2       20,909.8864            0
Harbour House, 2nd Floor
Waterfront Drive
P.O. Box 973
Road Town
Totola, British Virgin
Islands

KEW Court LLC                                   370          $750,000      $175,000         1,626.8        2,733.1330            0
Harbour House, 2nd Floor
Waterfront Drive
P.O. Box 973
Road Town
Totola, British Virgin
Islands

------------------------------------------------------------------------------------------------------------------------------------
TOTAL                      8,676,376          3,200          $750,000      $175,000         7,000         23,643.0194            0
------------------------------------------------------------------------------------------------------------------------------------

</TABLE><PAGE>

                                                                    Exhibit 10.3

                          CERTIFICATE OF DESIGNATION OF
                       THE RELATIVE RIGHTS AND PREFERENCES
                                     OF THE
                            SERIES D PREFERRED STOCK,
           SERIES E CONVERTIBLE PARTICIPATING SENIOR PREFERRED STOCK,
                        SERIES F SENIOR PREFERRED STOCK,
                            SERIES G PREFERRED STOCK,
                      SERIES H CONVERTIBLE PREFERRED STOCK,
                                       AND
                         SERIES I SENIOR PREFERRED STOCK
                                       OF
                          SWISSRAY INTERNATIONAL, INC.

The undersigned, the Chief Executive Officer and President of Swissray
International, Inc., a Delaware corporation (the "Corporation") does hereby
certify that, pursuant to the authority conferred upon the Board of Directors of
the Corporation pursuant to its Certificate of Incorporation, as amended, the
Board of Directors of the Corporation adopted resolutions on November 20, 2002
(the "Certificate of Designations"), creating the following series of the
Corporation's authorized but unissued preferred stock to be designated, and each
having the rights and preferences, as follows:

     Section 1. Designation and Number.

     1. 7,000 shares of Series D Preferred Stock, $.0001 par value per share
(the "Series D Preferred Stock");

     2. 12,000 shares of Series E Convertible Participating Senior Preferred
Stock, $.0001 par value per share (the "Series E Preferred Stock");

     3. 42,500 shares of Series F Senior Preferred Stock, $.0001 par value per
share (the "Series F Preferred Stock");

     4. 100,000 shares of Series G Preferred Stock, $.0001 par value per share
(the "Series G Preferred Stock");

     5. 23,644 shares of Series H Convertible Preferred Stock, $.0001 par value
per share (the "Series H Preferred Stock"); and

     6. 10,000 shares of Series I Senior Preferred Stock, $.0001 par value per
share (the "Series I Preferred Stock").

Terms used herein and not otherwise defined herein shall have the meanings given
such terms in Section 2.H.6 below.

<PAGE>

     Section 2. Terms of the Series D Preferred Stock, the Series E Preferred
Stock, the Series F Preferred Stock, the Series G Preferred Stock, the Series H
Preferred Stock and the Series I Preferred Stock.

     The powers, preferences, rights, qualification, limitations and
restrictions of the Series D Preferred Stock, the Series E Preferred Stock, the
Series F Preferred Stock, the Series G Preferred Stock, the Series H Preferred
Stock and the Series I Preferred Stock are as follows:

     A. Series D Preferred Stock.

     1. Ranking. The Series D Preferred Stock shall (i) rank junior to the
Series E Preferred Stock, the Series F Preferred Stock, the Series I Preferred
Stock and any Designated Senior Securities, (ii) rank on parity with the Series
G Preferred Stock and (ii) rank senior to all other equity securities of the
Corporation, and any other series or class of the Corporation's preferred stock,
common stock or other capital stock, now or hereafter authorized, with respect
to dividend rights and rights on liquidation, dissolution, redemption or winding
up.

     2. Dividends and Distributions.

     (a) Dividends. The holders of shares of Series D Preferred Stock shall be
entitled to receive dividends, as, when and if declared by the Board of
Directors, out of funds legally available therefore ("Legally Available Funds").
Dividends on each share of Series D Preferred Stock shall accrue on a daily
basis at the rate of 10% per annum on the sum of the Liquidation Value thereof
plus all accumulated and unpaid dividends thereon from and including the date of
issuance of such Series D Preferred Stock to and excluding the first to occur of
(i) the date on which such share of Series D Preferred Stock is redeemed by the
Corporation, (ii) the date on which the Liquidation Value of such Series D
Preferred Stock (plus an amount equal to all accumulated or accrued and unpaid
dividends thereon) is paid to the holder thereof in connection with the
liquidation of the Corporation; or (iii) the date on which such share of Series
D Preferred Stock is otherwise acquired by the Corporation. Such dividends shall
accrue whether or not they have been declared and whether or not there are
Legally Available Funds, and such dividends shall be cumulative such that all
accumulated or accrued and unpaid dividends shall be fully paid or declared with
funds irrevocably set apart for payment before any dividends, distributions,
redemptions or other payments may be made with respect to any Junior Equity
(other than Permitted Redemptions). The date on which the Corporation initially
issues any share of Series D Preferred Stock shall be deemed to be its "date of
issuance" regardless of the number of times subsequent transfer of such share of
Series D Preferred Stock is made on the stock records maintained by or for the
Corporation and regardless of the number of certificates which may be issued to
evidence such share of Series D Preferred Stock.

     (b) Dividend Reference Dates. To the extent not paid on the last day of
December, March, June and September of each year beginning on December 31, 2002
(the "Dividend Reference Date"), all dividends which have accrued on each share
of Series D Preferred Stock outstanding during the quarterly period (or a
portion thereof in the case of the initial Dividend Reference Date with respect
to the Series D Preferred Stock) ending upon each such Dividend Reference Date
shall be accumulated and shall remain accumulated dividends with respect to such
share of Series D Preferred Stock.

                                       2

<PAGE>

     (c)  Distribution of Partial Dividend Payments. If at any time the
Corporation pays less than the total amount of dividends then accrued with
respect to the Series D Preferred Stock, such payment shall be distributed pro
rata among the holders thereof based upon the aggregate accrued but unpaid
dividends on the shares of Series D Preferred Stock held by such holders
thereof.

     3.   Voting Rights. The holders of Series D Preferred Stock shall not have
any right to vote except, and solely to the extent, as required under applicable
law.

     4.   Liquidation, Dissolution or Winding Up.

     (a)  In the event of any liquidation, dissolution or winding up of the
Corporation, either voluntary or involuntary (including, without limitation, a
Deemed Liquidation Event), following the distribution in full to the holders of
the Series E Preferred Stock, the Series F Preferred Stock and the Series I
Preferred Stock of the Series E Senior Preference (as defined in Section
2.B.4(a) below), the Series F Senior Preference (as defined in Section 2.C.4(a)
below) and the Series I Senior Preference (as defined in Section 2.F.4(a) below)
(and the Designated Senior Securities (if applicable)), but before any
distribution or payment to holders of Common Stock or any other capital stock
ranking junior to the Series D Preferred Stock (including, without limitation,
any Junior Equity), the holders of shares of Series D Preferred Stock shall be
entitled to be paid an amount equal to the Liquidation Value (plus any
accumulated or accrued but unpaid dividends thereon) with respect to each share
of Series D Preferred Stock (the "Series D Shared Preference") which shall be
paid on parity with the Series E Shared Preference (as defined in Section
2.B.4(a) below), the Series F Shared Preference (as defined in Section 2.C.4(a)
below) and the Series G Shared Preference (as defined in Section 2.D.4(a)
below).

     (b)  If upon any liquidation, dissolution or winding up of the Corporation
(including, without limitation, a Deemed Liquidation Event), the assets of the
Corporation available for distribution to the holders of Series E Preferred
Stock, Series F Preferred Stock and Series I Preferred Stock shall be
insufficient to pay in full to such holders the sums which such holders are
entitled to receive pursuant to such holders' Series E Senior Preference, Series
F Senior Preference and Series I Senior Preference, then all of the assets so
available for distribution shall be distributed among and paid to such holders
ratably in proportion to the amounts that would be payable to such holders if
such assets were sufficient to permit payment in full. If upon any liquidation,
dissolution or winding up of the Corporation (including, without limitation, a
Deemed Liquidation Event), the assets of the corporation available for
distribution to the holders of Series D Preferred Stock, Series E Preferred
Stock, Series F Preferred Stock and Series G Preferred Stock are insufficient to
pay in full to such holders the sums which such holders are entitled to receive
pursuant to such holders' Series D Shared Preference, Series E Shared
Preference, Series F Shared Preference and Series G Shared Preference but are
sufficient to pay to the holders of Series E Preferred Stock, Series F Preferred
Stock and Series I Preferred Stock in full the sums which such holders are
entitled to receive pursuant to such holders' Series E Senior Preference, Series
F Senior Preference and Series I Senior Preference, then all of the assets so
available for distribution shall, first, be distributed among and paid to the
holders of Series E Preferred Stock, Series F Preferred Stock and Series I
Preferred Stock in respect of such holders' Series E Senior Preference, Series F
Senior Preference and Series I Senior Preference

                                       3

<PAGE>

and, second, the remainder of such assets shall be distributed among and paid to
the holders of Series D Preferred Stock, Series E Preferred Stock, Series F
Preferred Stock and Series G Preferred Stock ratably in proportion to the
amounts that would be payable to such holders if such assets were sufficient to
permit payment of the Series D Shared Preference, Series E Shared Preference,
Series F Shared Preference and Series G Shared Preference in full.

     (c) Whenever a distribution provided for in this Section 2.A.4 shall be
payable in property other than cash, the value of such distribution shall be the
fair market value of such property determined in good faith by the Corporation's
Board of Directors (or as otherwise set forth in Section 2.B.4(c) or Section
2.C.4(c) below).

     5. Redemption at the Option of the Corporation. The Corporation may, at any
time and from time to time at its option, redeem all or any portion of the
shares of Series D Preferred Stock then outstanding. If fewer than all of the
outstanding shares of the Series D Preferred Stock are to be redeemed as
provided in this Section 2.A.5, the shares to be so redeemed shall be determined
pro rata among the holders of record as of the applicable Redemption Date (as
defined herein). The total sum payable by the Corporation per share of Series D
Preferred Stock to be so redeemed shall equal the Liquidation Value thereof plus
an amount equal to all accumulated or accrued and unpaid dividends thereon (the
"Series D Redemption Price"). If the Corporation shall elect to exercise its
rights under this Section 2.A.5, written notice of such election shall be given
to the holders of record of the outstanding shares of Series D Preferred Stock,
not less than ten (10) calendar days nor more than thirty (30) calendar days
prior to the date on which such redemption is to be made (the "Redemption
Date"). Each such notice shall state: (i) the Redemption Date and (ii) the
number of shares to be redeemed. Promptly following the Redemption Date, each
holder of Series D Preferred Stock so redeemed shall promptly surrender to the
Corporation, at its principal corporate office, certificates representing the
shares so redeemed, duly endorsed in blank or accompanied by proper instruments
of transfer (or providing notice of loss, mutilation or destruction thereof and
indemnifying the Corporation for any loss by it in connection with such loss,
mutilation or destruction, or agreement otherwise in the form described in
Section 2.G.2 hereof). If fewer than all of the shares represented by any such
certificate are redeemed, a new certificate representing the unredeemed shares
shall be promptly issued to the holder of record thereof. For each share of
Series D Preferred Stock which is to be redeemed pursuant to this Section 2.A.5,
the Corporation shall be obligated on the Redemption Date to pay to the holder
thereof (upon surrender by such holder of certificates representing shares to be
so redeemed as described in the preceding sentence) out of Legally Available
Funds an amount in immediately available funds equal to the Series D Redemption
Price. On an after the Redemption Date and the payment (or setting apart for
payment in the case of a failure by a holder to surrender certificates
representing the shares so redeemed) of the Series D Redemption Price by the
Corporation, all rights of any holder of the Series D Preferred Stock so
redeemed, including the rights, if any, to receive notices and vote, shall cease
and terminate (other than the right to promptly receive certificates for the
number of unredeemed shares of Series D Preferred Stock if fewer than all of the
shares represented by any such certificate were redeemed); and such redeemed
shares shall no longer be deemed to be outstanding, whether or not the
certificates representing such shares have been received by the Corporation.

                                        4

<PAGE>

     6. Status of Redemption. Upon any redemption of shares of the Series D
Preferred Stock, the shares so redeemed shall be canceled.

     7. Amendment and Waiver. No amendment, modification or waiver shall be
binding or effective with respect to any provision set forth in this Section 2.A
without the prior written consent or vote of the holders of a majority of the
Series D Preferred Stock outstanding at the time such action is taken.

     B. Series E Preferred Stock.

     1. Ranking. The Series E Preferred Stock shall rank senior to all other
equity securities of the Corporation, and any other series or class of the
Corporation's preferred stock, common stock or other capital stock, now or
hereafter authorized (other than the Series F Preferred Stock, the Series I
Preferred Stock and the Designated Senior Securities) with respect to dividend
rights and rights on liquidation, dissolution, redemption or winding up. The
Series E Preferred Stock, Series F Preferred Stock and the Series I Preferred
Stock shall rank on a parity with each other with respect to such matters.

     2. Dividends and Distributions.

     (a) Dividends. The holders of shares of Series E Preferred Stock shall be
entitled to receive dividends, as, when and if declared by the Board of
Directors, out of Legally Available Funds. Dividends on each share of Series E
Preferred Stock shall accrue on a daily basis at the rate of 10% per annum on
the sum of the Liquidation Value thereof plus all accumulated and unpaid
dividends thereon from and including the date of issuance of such Series E
Preferred Stock to and excluding the first to occur of (i) the date on which
such share of Series E Preferred Stock is converted into a Conversion Unit; (ii)
the date on which the Liquidation Value of such Series E Preferred Stock (plus
an amount equal to all accumulated or accrued and unpaid dividends thereon) is
paid to the holder thereof in connection with the liquidation of the
Corporation; or (iii) the date on which such share of Series E Preferred Stock
is otherwise redeemed or acquired by the Corporation. Such dividends shall
accrue whether or not they have been declared and whether or not there are
Legally Available Funds, and such dividends shall be cumulative such that all
accrued and unpaid dividends shall be fully paid or declared with funds
irrevocably set apart for payment before any dividends, distributions,
redemptions or other payments may be made with respect to any Junior Equity
(including, any Series D Preferred Stock, Series G Preferred Stock or Series H
Preferred Stock) and upon liquidation or redemption (other than a Permitted
Redemption). The date on which the Corporation initially issues any share of
Series E Preferred Stock shall be deemed to be its "date of issuance" regardless
of the number of times subsequent transfer of such share of Series E Preferred
Stock is made on the stock records maintained by or for the Corporation and
regardless of the number of certificates which may be issued to evidence such
share of Series E Preferred Stock.

     (b) Dividend Reference Dates. To the extent not paid on the first Dividend
Reference Date following the date of issuance of the Series E Preferred Stock,
all dividends which have accrued on each share of Series E Preferred Stock
outstanding during the quarterly period (or a portion thereof in the case of the
initial Dividend Reference Date) ending upon each

                                        5

<PAGE>

such Dividend Reference Date shall be accumulated and shall remain accumulated
dividends with respect to such share of Series E Preferred Stock.

     (c) Distribution of Partial Dividend Payments. If at any time the
Corporation pays less than the total amount of dividends then accrued with
respect to the Series E Preferred Stock, the Series F Preferred Stock or the
Series I Preferred Stock, such payment shall be distributed pro rata among the
holders thereof based upon the aggregate accrued but unpaid dividends on the
shares of Series E Preferred Stock, the Series F Preferred Stock and the Series
I Preferred Stock held by such holders thereof.

     (d) Dividends and Other Distributions on Common Stock. In case the
Corporation shall at any time or from time to time declare or pay a dividend or
other distribution on the Common Stock (other than any dividend covered by
Section 2.B.6(a) hereof), the holders of the Series E Preferred Stock shall be
entitled to a proportionate share of any such dividend or distribution as though
they were the holders of the number of shares of Common Stock of the Corporation
which are included in the Conversion Unit into which their shares of Series E
Preferred Stock are convertible as of the record date fixed for the
determination of the holders of Common Stock entitled to receive such dividend
or distribution. Any such dividend or distribution shall be declared or paid on
the Series E Preferred Stock at the same time such dividend or distribution is
declared or paid on the Common Stock and shall be in addition to any dividends
payable under Section 2.B.2(a) hereof.

     (e) Restriction on Dividends and Distributions. So long as any Series E
Preferred Stock remains outstanding, without the prior written consent of the
holders of a majority of the outstanding shares of Series E Preferred Stock,
Series F Preferred Stock and the Series I Preferred Stock (voting together as a
single class), the Corporation shall not, nor shall it permit any Subsidiary to,
redeem, purchase or otherwise acquire directly or indirectly any Junior Equity
(including, any Series D Preferred Stock, Series G Preferred Stock or Series H
Preferred Stock), nor shall the Corporation directly or indirectly pay or
declare any dividend or make any distribution upon any Junior Equity (including,
any Series D Preferred Stock, Series G Preferred Stock or Series H Preferred
Stock) (other than a Permitted Redemption or in connection with a liquidation,
dissolution or winding up of the Corporation (including a Deemed Liquidation
Event) made in accordance with Section 2.B.4 below).

     3. Voting Rights. In addition to the other rights set forth herein, except
as otherwise required by applicable law, each share of Series E Preferred Stock
shall entitle the holder thereof to vote, in person or by proxy, at a special or
annual meeting of stockholders called for the purpose or by written consent, on
all matters voted on by holders of Common Stock voting together as a single
class with the holders of the Common Stock and with holders of all other shares
entitled to vote thereon. With respect to any such vote, each share of Series E
Preferred Stock shall entitle the holder thereof to cast that number of votes
per share as is equal to the number of votes that such holder would be entitled
to cast assuming that such shares of Series E Preferred Stock had been
converted, on the record date for determining the stockholders of the
Corporation eligible to vote on any such matters or, if no such record date is
established, at the date such vote is taken or any written consent of
stockholders is solicited, into the maximum number of shares of Common Stock
into which such shares of Series E Preferred Stock are then convertible as
provided herein.

                                        6

<PAGE>

     4. Liquidation, Dissolution or Winding Up.

     (a) In the event of any liquidation, dissolution or winding up of the
Corporation, either voluntary or involuntary (including, without limitation, a
Deemed Liquidation Event), before any distribution or payment to holders of
Common Stock or any other capital stock (including, without limitation, the
Junior Equity, the Series D Preferred Stock, the Series G Preferred Stock and
the Series H Preferred Stock, but excluding the Series F Preferred Stock, the
Series I Preferred Stock and the Designated Senior Securities (if applicable)),
but on parity with the payment to the holders of the Series F Preferred Stock of
the Series F Senior Preference and the holders of the Series I Preferred Stock
of the Series I Senior Preference, the holders of shares of Series E Preferred
Stock shall be entitled to be paid an amount equal to the Liquidation Value
(plus any accumulated or accrued but unpaid dividends thereon) with respect to
each share of Series E Preferred Stock (the "Series E Senior Preference").
Following payment of the Series E Senior Preference, the Series F Senior
Preference and the Series I Senior Preference, the holders of Series E Preferred
Stock shall be entitled to receive an amount equal to the product of (i) the
Series E Senior Preference and (ii) the Preference Factor (such amount, the
"Series E Shared Preference") which shall be paid on parity with the Series F
Shared Preference, the Series D Shared Preference and the Series G Shared
Preference and prior to any payments in respect of the Common Stock. In addition
to the payments set forth above, the holders of shares of Series E Preferred
Stock shall participate, on a parity and ratably on a per share basis with the
holders of the Common Stock, with respect to all such distributions or payments
that the holders of Series E Preferred Stock would be entitled to receive with
respect to the number of shares of Common Stock into which such holders' shares
of Series E Preferred Stock were convertible immediately prior to any relevant
record date or payment date in connection with liquidation, dissolution or
winding up, but only to the extent that shares of Common Stock would participate
in such distributions or payments (and such payment shall be junior to all
equity securities of the Corporation that rank senior to the Common Stock,
including, without limitation, the Series F Preferred Stock, the Series D
Preferred Stock, the Series G Preferred Stock and the Series I Preferred Stock).

     (b) If upon any liquidation, dissolution or winding up of the Corporation
(including, without limitation, a Deemed Liquidation Event), the assets of the
Corporation available for distribution to the holders of Series E Preferred
Stock, Series F Preferred Stock and Series I Preferred Stock shall be
insufficient to pay in full to such holders the sums which such holders are
entitled to receive pursuant to such holders' Series E Senior Preference, Series
F Senior Preference and Series I Senior Preference, then all of the assets so
available for distribution shall be distributed among and paid to such holders
ratably in proportion to the amounts that would be payable to such holders if
such assets were sufficient to permit payment in full. If upon any liquidation,
dissolution or winding up of the Corporation (including, without limitation, a
Deemed Liquidation Event), the assets of the corporation available for
distribution to the holders of Series D Preferred Stock, Series E Preferred
Stock, Series F Preferred Stock and Series G Preferred Stock are insufficient to
pay in full to such holders the sums which such holders are entitled to receive
pursuant to such holders' Series D Shared Preference, Series E Shared
Preference, Series F Shared Preference and Series G Shared Preference but are
sufficient to pay to the holders of Series E Preferred Stock, Series F Preferred
Stock and Series I Preferred Stock in full the sums which such holders are
entitled to receive pursuant to such holders' Series E Senior Preference, Series
F Senior Preference and Series I Senior Preference, then all of the

                                        7

<PAGE>

assets so available for distribution shall, first, be distributed among and paid
to the holders of Series E Preferred, Series F Preferred and Series I Preferred
Stock in respect of such holders' Series E Senior Preference, Series F Senior
Preference and Series I Senior Preference and, second, the remainder of such
assets shall be distributed among and paid to the holders of Series D Preferred
Stock, Series E Preferred Stock, Series F Preferred Stock and Series G Preferred
Stock ratably in proportion to the amounts that would be payable to such holders
if such assets were sufficient to permit payment of the Series D Shared
Preference, Series E Shared Preference, Series F Shared Preference and Series G
Shared Preference in full.

     (c) Whenever a distribution provided for in this Section 2.B.4 shall be
payable in property other than cash, the value of such distribution shall be the
fair market value of such property determined in good faith by the Corporation's
Board of Directors; provided, that if the holders of a majority of the shares of
Series E Preferred Stock and Series F Preferred Stock (making such determination
as a single class) object to such valuation as determined by the Board of
Directors within fifteen (15) days of receipt of written notice of such
valuation, then the value of such property shall be determined by a nationally
recognized investment banking firm (the "Appraiser") mutually agreeable to the
holders of a majority of the shares of Series E Preferred Stock and Series F
Preferred Stock (making such determination as a single class) and the
Corporation. If such stockholders and the Corporation cannot agree on an
Appraiser within fifteen (15) days from the day of receipt of written notice of
such objection by the Corporation, the Corporation, on the one hand, and such
stockholders, on the other hand, shall each select an Appraiser within
twenty-one (21) days from the day of receipt of written notice of such objection
by the Corporation, and those two Appraisers shall select, within twenty-seven
(27) days from the day of receipt of written notice of such objection by the
Corporation, an independent Appraiser to determine the fair market value of such
property. Such independent Appraiser shall be directed to determine fair market
value of such property as soon as practicable, but in no event later than thirty
(30) days from the date of its selection. The determination by an Appraiser
selected pursuant to the procedures set forth in this subsection (c) of the fair
market value will be conclusive and binding on all parties. The costs and
expenses of each such Appraiser shall be paid by (i) the Corporation, if such
Appraiser determines that the value of such property is greater than the value
determined by the Board of Directors of the Corporation, (ii) pro rata by the
holders of the Series E Preferred Stock and Series F Preferred Stock if such
Appraiser determines that the value thereof is less than the value determined by
the Board of Directors of the Corporation, or (iii) split equally between the
Corporation, on the one hand, and the holders of the Series E Preferred and
Series F Preferred Stock (to be paid among them as set forth in clause (ii)
immediately above) if such Appraiser determines that the value thereof is equal
to the value determined by the Board of Directors of the Corporation.

     5. Conversion.

     (a) Conversion Generally. Under the circumstances set forth in this Section
2.B.5, as applicable, the Series E Preferred Stock may be convertible or shall
automatically convert into Conversion Units (as defined below), at a rate of one
Conversion Unit for one share of Series E Preferred Stock. A "Conversion Unit"
shall consist of (i) one share of Series F Preferred Stock and (ii) 39,957.1813
shares of Common Stock, subject to adjustment pursuant to Section 2.B.6 hereof.
The ratio of (a) one share of Series E Preferred Stock to (b) the number of
shares of Common Stock set forth in clause (ii) of the immediately preceding
sentence (e.g., the

                                       8

<PAGE>

ratio of one share of Series E Preferred Stock to the number of shares of Common
Stock to which such share of Series E Preferred Stock converts) (subject to the
adjustments set forth herein) shall be the "Common Conversion Ratio". No share
of Series E Preferred Stock shall be entitled to any dividends accruing from and
after the date on which such share of Series E Preferred Stock was converted
into Conversion Units. If upon conversion there are any unpaid, accrued or
accumulated dividends due on the shares of Series E Preferred Stock, such
dividends shall continue to be deferred, but shall be considered unpaid, accrued
or accumulated dividends (as the case may be) due on the Series F Preferred
Stock.

     (b) Optional Conversion. Each share of Series E Preferred Stock shall be
convertible, at the option of the holder thereof, into a Conversion Unit at any
time after the date of issuance of such share, by surrender of such share of
Series E Preferred Stock at the office of the Corporation or any transfer agent
for such stock at a rate of one Conversion Unit for one share of Series E
Preferred Stock. The option to convert into Conversion Units shall be exercised
by (X) giving written notice to the Corporation at its principal corporate
office, of the election to convert the same and shall state therein the name or
names in which the certificate or certificates for shares of Series F Preferred
Stock and Common Stock issuable upon conversion are to be issued and (Y)
surrendering for such purpose to the Corporation, at its principal corporate
office, certificates representing the shares to be converted, duly endorsed in
blank or accompanied by proper instruments of transfer (or providing notice of
loss, mutilation or destruction thereof and indemnifying the Corporation for any
loss by it in connection with such loss, mutilation or destruction, or agreement
otherwise in the form described in Section 2.G.2 hereof). If fewer than all of
the shares represented by any such certificate are converted, a new certificate
representing the unconverted shares of Series E Preferred Stock shall, as soon
as practicable thereafter, be issued to the holder of record thereof. The
Corporation shall give prompt written notice of such election to the other
holders of Series E Preferred Stock. The Corporation shall, as soon as
practicable thereafter, issue and deliver at such office to such holder of
Series E Preferred Stock, or to the nominee or nominees of such holder, a
certificate or certificates for the number of shares of Series F Preferred Stock
and Common Stock to which such holder shall be entitled as aforesaid. The Person
in whose name any certificate for shares of Common Stock and Series F Preferred
Stock shall be issued upon such conversion shall be deemed to be the holder of
record of such shares of Common Stock and Series F Preferred Stock on such date
of notice and surrender, notwithstanding that the share register of the
Corporation shall then be closed or that the certificates representing such
Common Stock and Series F Preferred Stock shall not then be actually delivered
to such Person. On the date of such conversion, all rights with respect to the
shares of Series E Preferred Stock so converted, including the rights, if any,
to receive notices and vote as a holder of Series E Preferred Stock, will
terminate, except only the rights of holders thereof to (i) promptly receive
certificates for the number of shares of Common Stock and Series F Preferred
Stock into which such shares of Series E Preferred Stock have been converted and
(ii) promptly receive certificates for the number of unconverted shares of
Series E Preferred Stock (if fewer than all of the shares represented by any
such certificate are converted). On the date of such conversion, the holders of
Series E Preferred Stock so converted shall have the right to exercise the
rights to which they are entitled as holders of Common Stock and Series F
Preferred Stock resulting from such conversion.

                                        9

<PAGE>

     (c)  Automatic Conversion. Each share of Series E Preferred Stock shall
automatically be converted into Conversion Units, at a rate of one Conversion
Unit for one share of Series E Preferred Stock on the date specified by written
consent or agreement of the holders of a majority of the then outstanding shares
of Series E Preferred Stock (provided such specified date is after the date of
obtaining such consent or agreement, and the holders of Series E Preferred Stock
effecting an automatic conversion pursuant to this clause provide to the
Corporation, at its principal corporate office, written notice of the occurrence
of such automatic conversion at least ten (10) business days prior to the
occurrence of such automatic conversion) (the "Automatic Conversion Date").
Immediately after the Automatic Conversion Date, each holder of Series E
Preferred Stock shall be deemed to be the holder of record of the Series F
Preferred Stock and Common Stock issuable upon conversion of such holder's
Series E Preferred Stock notwithstanding that the share register of the
Corporation shall then be closed or that certificates representing such Series F
Preferred Stock or Common Stock shall not then be actually delivered to such
holder. Upon written notice from the Corporation, each holder of Series E
Preferred Stock so converted shall promptly surrender to the Corporation at its
principal office, certificates representing the shares so converted, duly
endorsed in blank or accompanied by proper instruments of transfer (or providing
notice of loss, mutilation or destruction thereof and indemnifying the
Corporation for any loss by it in connection with such loss, mutilation or
destruction, or agreement otherwise in the form described in Section 2.G.2
hereof) in exchange for certificates for the number of shares of Common Stock
and Series F Preferred Stock into which such shares of Series E Preferred Stock
have been converted. On the Automatic Conversion Date, all rights with respect
to the shares of Series E Preferred Stock so converted, including the rights to
receive notices and vote, will terminate, except only the rights of holders
thereof to (i) promptly receive certificates for the number of shares of Common
Stock and Series F Preferred Stock into which such shares of Series E Preferred
Stock have been converted and (ii) exercise the rights to which they are
entitled as holders of Common Stock and Series F Preferred Stock.

     6.   Anti-dilution Adjustments.

     (a)  Dividend, Subdivision, Combination or Reclassification of Common
Stock. If the Corporation shall, at any time or from time to time, (i) declare a
dividend on the Common Stock payable in shares of its capital stock (including
Common Stock), (ii) subdivide the outstanding Common Stock, (iii) combine the
outstanding Common Stock into a smaller number of shares or (iv) issue any
shares of its capital stock in a reclassification of the Common Stock (excluding
any such reclassification in connection with a consolidation or merger in which
the Corporation is the continuing corporation), then, in each such case, the
Common Conversion Ratio, at the time of the record date for such dividend or of
the effective data of such subdivision, combination or reclassification shall be
proportionately adjusted so that, in connection with a conversion of the shares
of Series E Preferred Stock after such date, the holder of shares of Series E
Preferred Stock shall be entitled to receive the aggregate number and kind of
shares of capital stock which, if the conversion had occurred immediately prior
to such date, the holder would have owned upon such conversion and been entitled
to receive by virtue of such dividend, subdivision, combination or
reclassification. Any such adjustment shall become effective immediately upon
the record date of such dividend or the effective date of such subdivision,
combination or reclassification.

                                       10

<PAGE>

     (b)  No Impairment. The Corporation will not, without the prior written
consent of the holders of a majority of the outstanding Series E Preferred
Stock, by amendment of its Certificate of Incorporation or through any
reorganization, recapitalization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other voluntary action, avoid or
seek to avoid the carrying out of all the provisions of Section 2.B.5 regarding
conversion and this Section 2.B.6 regarding adjustments for anti-dilution
consistent with the tenor and purpose of such actions.

     7.   Reservation of Common Stock and Series F Preferred Stock. The
Corporation shall at all times reserve and keep available for issuance upon the
conversion of the shares of Series E Preferred Stock the maximum number of each
of its authorized but unissued shares of Common Stock and Series F Preferred
Stock as is reasonably anticipated to be sufficient to permit the conversion of
all outstanding shares of Series E Preferred Stock into Conversion Units and
shall take all action required to increase the authorized number of shares of
Common Stock or Series F Preferred Stock, as the case may be, if at any time
there shall be insufficient authorized but unissued shares of Common Stock or
Series F Preferred Stock, as the case may be, to permit such reservation or to
permit the conversion of all outstanding shares of Series E Preferred Stock.
Without limiting the foregoing obligations of the Corporation or any other
obligations of the Corporation at law or in equity, and without limiting any
breach by the Corporation of any of such obligations or any rights or remedies
of a holder of Series E Preferred Stock with respect to any such breach, if at
any time the number of authorized but unissued shares of Common Stock or Series
F Preferred Stock shall not be sufficient to effect the conversion of all then
outstanding shares of the Series E Preferred Stock, the Corporation shall
provide immediate written notice of such deficiency to each holder of Series E
Preferred Stock and, in addition to such other remedies as shall be available to
the holder of such Series E Preferred Stock and without being deemed to grant to
the Corporation any additional period of cure for any of the foregoing breaches
then provided elsewhere herein, the Corporation, at the direction of any holder
of Series E Preferred Stock, shall take such corporate action as may be
necessary to increase its authorized but unissued shares of Common Stock and/or
Series F Preferred Stock to such number of shares as shall be sufficient for
such purposes, including, without limitation, using its best efforts to
thereafter obtain the requisite stockholder approval of any necessary amendment
to its Certificate of Incorporation.

     8.   Status on Conversion. Upon any conversion of shares of the Series E
Preferred Stock, the shares so converted shall be canceled.

     9.   Sufficient Securities. Any provision that entitles a holder of Series
E Preferred Stock to exercise rights, or otherwise be treated, on an as
converted basis shall be construed and applied as if all of the shares into
which each such share of Series E Preferred Stock is convertible are authorized
but unissued and available for issuance upon such conversion.

     10.  Amendment and Waiver. No amendment, modification or waiver shall be
binding or effective with respect to any provision relating to the rights of the
Series E Preferred Stock hereof without the prior written consent or vote of the
holders of a majority of the Series E Preferred Stock outstanding at the time
such action is taken.

                                       11

<PAGE>
     C.   Series F Preferred Stock.

     1.   Ranking. The Series F Preferred Stock shall rank senior to all other
equity securities of the Corporation, and any other series or class of the
Corporation's preferred stock, common stock or other capital stock, now or
hereafter authorized (other than the Series E Preferred Stock, the Series I
Preferred Stock and the Designated Senior Securities) with respect to dividend
rights and rights on liquidation, dissolution, redemption or winding up. The
Series E Preferred Stock, Series F Preferred Stock and Series I Preferred Stock
shall rank on a parity with each other with respect to such matters.

     2. Dividends and Distributions.

     (a)  Dividends. The holders of shares of Series F Preferred Stock shall be
entitled to receive dividends, as, when and if declared by the Board of
Directors from Legally Available Funds. Dividends on each share of Series F
Preferred Stock shall accrue on a daily basis at the rate of 10% per annum on
the sum of the Liquidation Value thereof plus all accumulated and unpaid
dividends thereon (including, without limitation, an amount equal to those
dividends referred to in the last sentence of Section 2.B.5(a) hereof) from and
including the date of issuance of such Series F Preferred Stock to and excluding
the first to occur of (i) the date on which such share of Series F Preferred
Stock is redeemed by the Corporation, (ii) the date on which the Liquidation
Value of such Series F Preferred Stock (plus an amount equal to all accumulated
or accrued and unpaid dividends thereon) is paid to the holder thereof in
connection with the liquidation of the Corporation; or (iii) the date on which
such share of Series F Preferred Stock is otherwise acquired by the Corporation.
Such dividends shall accrue whether or not they have been declared and whether
or not there are Legally Available Funds, and such dividends shall be cumulative
such that all accrued and unpaid dividends shall be fully paid or declared with
funds irrevocably set apart for payment before any dividends, distributions,
redemptions or other payments may be made with respect to any Junior Equity
(including, any Series D Preferred Stock, Series G Preferred Stock or Series H
Preferred Stock) (other than Permitted Redemptions). The date on which the
Corporation initially issues any share of Series F Preferred Stock shall be
deemed to be its "date of issuance" regardless of the number of times subsequent
transfer of such share of Series F Preferred Stock is made on the stock records
maintained by or for the Corporation and regardless of the number of
certificates which may be issued to evidence such share of Series F Preferred
Stock.

     (b)  Dividend Reference Dates. To the extent not paid on the first Dividend
Reference Date following the date of issuance of the Series F Preferred Stock,
all dividends which have accrued on each share of Series F Preferred Stock
outstanding during the quarterly period (or a portion thereof in the case of the
initial Dividend Reference Date with respect to the Series F Preferred Stock)
ending upon each such Dividend Reference Date shall be accumulated and shall
remain accumulated dividends with respect to such share of Series F Preferred
Stock.

     (c)  Distribution of Partial Dividend Payments. If at any time the
Corporation pays less than the total amount of dividends then accrued with
respect to the Series E Preferred Stock, the Series F Preferred Stock or Series
I Preferred Stock, such payment shall be distributed pro rata among the holders
thereof based upon the aggregate accrued but unpaid dividends on the

                                       12

<PAGE>

shares of Series F Preferred Stock, the Series E Preferred Stock and the Series
I Preferred Stock held by such holders thereof.

     (d)  Restriction on Dividends and Distributions. So long as any Series F
Preferred Stock remains outstanding, without the prior written consent or vote
of the holders of a majority of the outstanding shares of Series E Preferred
Stock, Series F Preferred Stock and Series I Preferred Stock (voting together as
a single class), the Corporation shall not, nor shall it permit any Subsidiary
to, redeem, purchase or otherwise acquire directly or indirectly any Junior
Equity (including, any Series D Preferred Stock, Series G Preferred Stock or
Series H Preferred Stock), nor shall the Corporation directly or indirectly pay
or declare any dividend or make any distribution upon any Junior Equity
(including, any Series D Preferred Stock, Series G Preferred Stock or Series H
Preferred Stock) (other than a Permitted Redemption or in connection a
liquidation, dissolution or winding up of the Corporation (including a Deemed
Liquidation Event) made in accordance with Section 2.C.4 below).

     3.   Voting Rights. Other than the rights otherwise set forth herein, the
holders of Series F Preferred Stock shall not have any right to vote except, and
solely to the extent, as required under applicable law.

     4.   Liquidation, Dissolution or Winding Up.

     (a)  In the event of any liquidation, dissolution or winding up of the
Corporation, either voluntary or involuntary (including, without limitation, a
Deemed Liquidation Event), before any distribution or payment to holders of
Common Stock or any other capital stock (including, without limitation, the
Junior Equity, the Series D Preferred Stock, the Series G Preferred Stock and
the Series H Preferred Stock, but excluding the Series E Preferred Stock, the
Series I Preferred Stock and the Designated Senior Securities (if applicable)),
but on parity with the payment to the holders of the Series E Preferred Stock of
the Series E Senior Preference and the holders of the Series I Preferred Stock
of the Series I Senior Preference, the holders of shares of Series F Preferred
Stock shall be entitled to be paid an amount equal to the Liquidation Value
(plus any accumulated or accrued but unpaid dividends thereon) with respect to
each share of Series F Preferred Stock (the "Series F Senior Preference").
Following payment of the Series F Senior Preference, the Series E Senior
Preference and Series I Senior Preference, the holders of Series F Preferred
Stock shall be entitled to receive an amount equal to the product of (i) the
Series F Senior Preference and (ii) the Preference Factor (such amount, the
"Series F Shared Preference") which shall be paid on parity with the Series E
Shared Preference, the Series D Shared Preference and the Series G Shared
Preference and prior to any payments in respect of the Common Stock.

     (b)  If upon any liquidation, dissolution or winding up of the Corporation
(including, without limitation, a Deemed Liquidation Event), the assets of the
Corporation available for distribution to the holders of Series E Preferred
Stock, Series F Preferred Stock and Series I Preferred Stock shall be
insufficient to pay in full to such holders the sums which such holders are
entitled to receive pursuant to such holders' Series E Senior Preference, Series
F Senior Preference and Series I Senior Preference, then all of the assets so
available for distribution shall be distributed among and paid to such holders
ratably in proportion to the amounts that would be payable to such holders if
such assets were sufficient to permit payment

                                       13

<PAGE>

in full. If upon any liquidation, dissolution or winding up of the Corporation
(including, without limitation, a Deemed Liquidation Event), the assets of the
corporation available for distribution to the holders of Series D Preferred
Stock, Series E Preferred Stock, Series F Preferred Stock and Series G Preferred
Stock are insufficient to pay in full to such holders the sums which such
holders are entitled to receive pursuant to such holders' Series D Shared
Preference, Series E Shared Preference, Series F Shared Preference and Series G
Shared Preference but are sufficient to pay to the holders of Series E Preferred
Stock, Series F Preferred Stock and Series I Preferred Stock in full the sums
which such holders are entitled to receive pursuant to such holders' Series E
Senior Preference, Series F Senior Preference and Series I Senior Preference,
then all of the assets so available for distribution shall, first, be
distributed among and paid to the holders of Series E Preferred Stock, Series F
Preferred Stock and Series I Preferred Stock in respect of such holders' Series
E Senior Preference, Series F Senior Preference and Series I Senior Preference
and, second, the remainder of such assets shall be distributed among and paid to
the holders of Series D Preferred Stock, Series E Preferred Stock, Series F
Preferred Stock and Series G Preferred Stock ratably in proportion to the
amounts that would be payable to such holders if such assets were sufficient to
permit payment of the Series D Shared Preference, Series E Shared Preference,
Series F Shared Preference and Series G Shared Preference in full.

     (c)  Whenever a distribution provided for in this Section 2.C.4 shall be
payable in property other than cash, the value of such distribution shall be the
fair market value of such property determined in good faith by the Corporation's
Board of Directors; provided, that if the holders of a majority of the shares of
Series E Preferred Stock and Series F Preferred Stock (making such determination
as a single class) object to such valuation as determined by the Board of
directors within fifteen (15) days of receipt of written notice of such
valuation, then the value of such property shall be determined by an Appraiser
mutually agreeable to the holders of a majority of the shares of Series E
Preferred Stock and Series F Preferred Stock (making such determination as a
single class) and the Corporation. If such stockholders and the Corporation
cannot agree on an Appraiser within fifteen (15) days from the day of receipt of
written notice of such objection by the Corporation, the Corporation, on the one
hand, and such stockholders, on the other hand, shall each select an Appraiser
within twenty-one (21) days from the day of receipt of written notice of such
objection by the Corporation, and those two Appraisers shall select, within
twenty-seven (27) days from the day of receipt of written notice of such
objection by the Corporation, an independent Appraiser to determine the fair
market value of such property. Such independent Appraiser shall be directed to
determine fair market value of such property as soon as practicable, but in no
event later than thirty (30) days from the date of its selection. The
determination by an Appraiser selected pursuant to the procedures set forth in
this subsection (c) of the fair market value will be conclusive and binding on
all parties. The costs and expenses of each such Appraiser shall be paid by (i)
the Corporation, if such Appraiser determines that the value of such property is
greater than the value determined by the Board of Directors of the Corporation,
(ii) pro rata by the holders of the Series E Preferred Stock and Series F
Preferred Stock if such Appraiser determines that the value thereof is less than
the value determined by the Board of Directors of the Corporation, or (iii)
split equally between the Corporation, on the one hand, and the holders of the
Series E Preferred and Series F Preferred Stock (to be paid among them as set
forth in clause (ii) immediately above) if such Appraiser determines that the
value thereof is equal to the value determined by the Board of Directors of the
Corporation.

                                       14

<PAGE>

     5.   Amendment and Waiver. No amendment, modification or waiver shall be
binding or effective with respect to any provision relating to the rights of the
Series F Preferred Stock hereof without the prior written consent or vote of the
holders of a majority of the Series E Preferred Stock and Series F Preferred
Stock, voting together as a single class, outstanding at the time such action is
taken.

     D.   Series G Preferred Stock.

     1.   Ranking. The Series G Preferred Stock shall (i) rank junior to the
Series E Preferred Stock, the Series F Preferred Stock, the Series I Preferred
Stock and any Designated Senior Securities, (ii) rank on parity with the Series
D Preferred Stock and (ii) rank senior to all other equity securities of the
Corporation, and any other series or class of the Corporation's preferred stock,
common stock or other capital stock, now or hereafter authorized, with respect
to dividend rights and rights on liquidation, dissolution, redemption or winding
up.

     2.   No Dividends. The holders of shares of Series G Preferred Stock shall
not be entitled to receive any dividends.

     3.   Voting Rights. The holders of Series G Preferred Stock shall not have
any right to vote except, and solely to the extent, as required under applicable
law.

     4.   Liquidation, Dissolution or Winding Up.

     (a)  In the event of any liquidation, dissolution or winding up of the
Corporation, either voluntary or involuntary (including, without limitation, a
Deemed Liquidation Event), following the distribution in full to the holders of
the Series E Preferred Stock, the Series F Preferred Stock and the Series I
Preferred Stock of the Series E Senior Preference, the Series F Senior
Preference and the Series I Senior Preference (and the Designated Senior
Securities (if applicable)), but before any distribution or payment to holders
of Common Stock or any other capital stock ranking junior to the Series G
Preferred Stock (including, without limitation, any Junior Equity), the holders
of shares of Series G Preferred Stock shall be entitled to be paid an amount
equal to the Series G Shared Preference (pro rata based on the number of shares
of Series G Preferred Stock held) which shall be paid on parity with the Series
D Shared Preference, the Series E Shared Preference and the Series F Shared
Preference.

     (b)  If upon any liquidation, dissolution or winding up of the Corporation
(including, without limitation, a Deemed Liquidation Event), the assets of the
Corporation available for distribution to the holders of Series E Preferred
Stock, Series F Preferred Stock and Series I Preferred Stock shall be
insufficient to pay in full to such holders the sums which such holders are
entitled to receive pursuant to such holders' Series E Senior Preference, Series
F Senior Preference and Series I Senior Preference, then all of the assets so
available for distribution shall be distributed among and paid to such holders
ratably in proportion to the amounts that would be payable to such holders if
such assets were sufficient to permit payment in full. If upon any liquidation,
dissolution or winding up of the Corporation (including, without limitation, a
Deemed Liquidation Event), the assets of the corporation available for
distribution to the holders of Series D Preferred Stock, Series E Preferred
Stock, Series F Preferred Stock and Series G Preferred Stock are insufficient to
pay in full to such holders the sums which such

                                       15

<PAGE>

holders are entitled to receive pursuant to such holders' Series D Shared
Preference, Series E Shared Preference, Series F Shared Preference and Series G
Shared Preference but are sufficient to pay to the holders of Series E Preferred
Stock, Series F Preferred Stock and Series I Preferred Stock in full the sums
which such holders are entitled to receive pursuant to such holders' Series E
Senior Preference, Series F Senior Preference and Series I Senior Preference,
then all of the assets so available for distribution shall, first, be
distributed among and paid to the holders of Series E Preferred Stock, Series F
Preferred Stock and Series I Preferred Stock in respect of such holders' Series
E Senior Preference, Series F Senior Preference and Series I Senior Preference
and, second, the remainder of such assets shall be distributed among and paid to
the holders of Series D Preferred Stock, Series E Preferred Stock, Series F
Preferred Stock and Series G Preferred Stock ratably in proportion to the
amounts that would be payable to such holders if such assets were sufficient to
permit payment of the Series D Shared Preference, Series E Shared Preference,
Series F Shared Preference and the Series G Shared Preference in full.

     (c) Whenever a distribution provided for in this Section 2.D.4 shall be
payable in property other than cash, the value of such distribution shall be the
fair market value of such property determined in good faith by the Corporation's
Board of Directors (or as otherwise set forth in Section 2.B.4(c) or Section
2.C.4(c) above).

     5.  Amendment and Waiver. No amendment, modification or waiver shall be
binding or effective with respect to any provision set forth in this Section 2.D
without the prior written consent or vote of the holders of a majority of the
Series G Preferred Stock outstanding at the time such action is taken.

     E.  Series H Preferred Stock.
         ------------------------

     1.  Ranking. The Series H Preferred Stock shall rank (i) on parity with the
Corporation's common stock and (ii) junior to all other equity securities of the
Corporation, and any other series or class of the Corporation's preferred stock
or other capital stock, now or hereafter authorized with respect to dividend
rights and rights on liquidation, dissolution, redemption or winding up.

     2.  Dividends and Distributions.
         ---------------------------

     (a) Dividends. Except as provided in Section 2.E.2(b) below, the holders of
shares of Series H Preferred Stock shall not be entitled to receive dividends.

     (b) Dividends and Other Distributions on Common Stock. In case the
Corporation shall at any time or from time to time declare or pay a dividend or
other distribution on the Common Stock (other than any dividend covered by
Section 2.E.6(a) hereof), the holders of the Series H Preferred Stock shall be
entitled to a proportionate share of any such dividend or distribution as though
they were the holders of the number of shares of Common Stock into which their
shares of Series H Preferred Stock are convertible as of the record date fixed
for the determination of the holders of Common Stock entitled to receive such
dividend or distribution. Any such dividend or distribution shall be declared on
the Series H Preferred Stock at the same time such dividend or distribution is
declared on the Common Stock, but any such dividend or

                                       16

<PAGE>

distribution shall be paid to the holders of Series H Preferred Stock before any
payment to the holders of Common Stock with respect to such dividend or
distribution.

     3. Voting Rights. In addition to the other rights set forth herein, except
as otherwise required by applicable law, each share of Series H Preferred Stock
shall entitle the holder thereof to vote, in person or by proxy, at a special or
annual meeting of stockholders called for the purpose or by written consent, on
all matters voted on by holders of Common Stock voting together as a single
class with the holders of the Common Stock and with holders of all other shares
entitled to vote thereon. With respect to any such vote, each share of Series H
Preferred Stock shall entitle the holder thereof to cast that number of votes
per share as is equal to the number of votes that such holder would be entitled
to cast assuming that such shares of Series H Preferred Stock had been
converted, on the record date for determining the stockholders of the
Corporation eligible to vote on any such matters or, if no such record date is
established, at the date such vote is taken or any written consent of
stockholders is solicited, into the maximum number of shares of Common Stock
into which such shares of Series H Preferred Stock are then convertible as
provided herein.

     4.  Liquidation, Dissolution or Winding Up.
         --------------------------------------

     (a) In the event of any liquidation, dissolution or winding up of the
Corporation, either voluntary or involuntary (including, without limitation, a
Deemed Liquidation Event), following the distribution in full to the holders of
the Series D Preferred Stock, the Series E Preferred Stock, the Series F
Preferred Stock, the Series G Preferred Stock and Series I Preferred Stock of
the Series D Shared Preference, the Series E Senior Preference, the Series E
Shared Preference, the Series F Senior Preference, the Series F Shared
Preference, the Series G Shared Preference and the Series I Senior Preference,
the holders of shares of Series H Preferred Stock shall participate, on a parity
and ratably on a per share basis with the holders of the Common Stock (and
Series E Preferred Stock), with respect to all such distributions or payments
that the holders of Series H Preferred Stock would be entitled to receive with
respect to the number of shares of Common Stock into which such holders' shares
of Series H Preferred Stock were convertible immediately prior to any relevant
record date or payment date in connection with liquidation, dissolution or
winding up, but only to the extent that shares of Common Stock would participate
in such distributions or payments (and such payment shall be junior to all
equity securities of the Corporation that rank senior to the Common Stock).

     (b) Whenever a distribution provided for in this Section 2.E.4 shall be
payable in property other than cash, the value of such distribution shall be the
fair market value of such property determined in good faith by the Corporation's
Board of Directors (or as otherwise set forth in Section 2.B.4(c) or Section
2.C.4(c) above).

     5.  Conversion.
         ----------

     (a) Conversion Generally. Under the circumstances set forth in this Section
2.E.5, as applicable, the Series H Preferred Stock shall convert into Common
Stock, at a rate of 10,000 shares of Common Stock for one share of Series H
Preferred Stock, subject to adjustment pursuant to Section 2.E.6 hereof (the "H
To Common Conversion Ratio"). No share of Series H

                                       17

<PAGE>

Preferred Stock shall be entitled to any dividends accruing from and after the
date on which such share of Series H Preferred Stock was converted into Common
Stock.

     (b) Optional Conversion. Each share of Series H Preferred Stock shall be
convertible, at the option of the holder thereof, into Common Stock at any time
after the date of issuance of such share, by surrender of such share of Series H
Preferred Stock at the office of the Corporation or any transfer agent for such
stock at the H To Common Conversion Ratio. The option to convert into Common
Stock shall be exercised by (X) giving written notice to the Corporation at its
principal corporate office, of the election to convert the same and shall state
therein the name or names in which the certificate or certificates for shares of
Common Stock issuable upon conversion are to be issued and (Y) surrendering for
such purpose to the Corporation, at its principal corporate office, certificates
representing the shares to be converted, duly endorsed in blank or accompanied
by proper instruments of transfer (or providing notice of loss, mutilation or
destruction thereof and indemnifying the Corporation for any loss by it in
connection with such loss, mutilation or destruction, or agreement otherwise in
the form described in Section 2.G.2 hereof). If fewer than all of the shares
represented by any such certificate are converted, a new certificate
representing the unconverted shares of Series H Preferred Stock shall, as soon
as practicable thereafter, be issued to the holder of record thereof. The
Corporation shall give prompt written notice of such election to the other
holders of Series H Preferred Stock. The Corporation shall, as soon as
practicable thereafter, issue and deliver at such office to such holder of
Series H Preferred Stock, or to the nominee or nominees of such holder, a
certificate or certificates for the number of shares of Common Stock to which
such holder shall be entitled as aforesaid. The Person in whose name any
certificate for shares of Common Stock shall be issued upon such conversion
shall be deemed to be the holder of record of such shares of Common Stock on
such date of notice and surrender, notwithstanding that the share register of
the Corporation shall then be closed or that the certificates representing such
Common Stock shall not then be actually delivered to such Person. On the date of
such conversion, all rights with respect to the shares of Series H Preferred
Stock so converted, including the rights, if any, to receive notices and vote as
a holder of Series H Preferred Stock, will terminate, except only the rights of
holders thereof to (i) promptly receive certificates for the number of shares of
Common Stock into which such shares of Series H Preferred Stock have been
converted and (ii) promptly receive certificates for the number of unconverted
shares of Series H Preferred Stock (if fewer than all of the shares represented
by any such certificate are converted). On the date of such conversion, the
holders of Series H Preferred Stock so converted shall have the right to
exercise the rights to which they are entitled as holders of Common Stock
resulting from such conversion.

     (c) Automatic Conversion. Each share of Series H Preferred Stock shall
automatically be converted into Common Stock, at the H to Common Ratio on the
date specified by the Corporation's Board of Directors (the "Automatic
Conversion Date"); provided, however, that on such date the Corporation has a
sufficient number of authorized but unissued shares of Common Stock immediately
available for issuance to fully complete such conversion. Immediately after the
Automatic Conversion Date, each holder of Series H Preferred Stock shall be
deemed to be the holder of record of the Common Stock issuable upon conversion
of such holder's Series H Preferred Stock notwithstanding that the share
register of the Corporation shall then be closed or that certificates
representing such Common Stock shall not then be actually delivered to such
holder. Upon written notice from the Corporation, each holder of Series H

                                       18

<PAGE>

Preferred Stock so converted shall promptly surrender to the Corporation at its
principal office, certificates representing the shares so converted, duly
endorsed in blank or accompanied by proper instruments of transfer (or providing
notice of loss, mutilation or destruction thereof and indemnifying the
Corporation for any loss by it in connection with such loss, mutilation or
destruction, or agreement otherwise in the form described in Section 2.G.2
hereof) in exchange for certificates for the number of shares of Common Stock
into which such shares of Series H Preferred Stock have been converted. On the
Automatic Conversion Date, all rights with respect to the shares of Series H
Preferred Stock so converted, including the rights to receive notices and vote,
will terminate, except only the rights of holders thereof to (i) promptly
receive certificates for the number of shares of Common Stock into which such
shares of Series H Preferred Stock have been converted and (ii) exercise the
rights to which they are entitled as holders of Common Stock.

     6.  Anti-dilution Adjustments.
         -------------------------

     (a) Dividend, Subdivision, Combination or Reclassification of Common Stock.
If the Corporation shall, at any time or from time to time, (i) declare a
dividend on the Common Stock payable in shares of its capital stock (including
Common Stock), (ii) subdivide the outstanding Common Stock, (iii) combine the
outstanding Common Stock into a smaller number of shares or (iv) issue any
shares of its capital stock in a reclassification of the Common Stock (excluding
any such reclassification in connection with a consolidation or merger in which
the Corporation is the continuing corporation), then, in each such case, the H
To Common Conversion Ratio, at the time of the record date for such dividend or
of the effective data of such subdivision, combination or reclassification shall
be proportionately adjusted so that, in connection with a conversion of the
shares of Series H Preferred Stock after such date, the holder of shares of
Series H Preferred Stock shall be entitled to receive the aggregate number and
kind of shares of capital stock which, if the conversion had occurred
immediately prior to such date, the holder would have owned upon such conversion
and been entitled to receive by virtue of such dividend, subdivision,
combination or reclassification. Any such adjustment shall become effective
immediately upon the record date of such dividend or the effective date of such
subdivision, combination or reclassification.

     (b) No Impairment. The Corporation will not, without the prior written
consent of the holders of a majority of the outstanding Series H Preferred
Stock, by amendment of its Certificate of Incorporation or through any
reorganization, recapitalization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other voluntary action, avoid or
seek to avoid the carrying out of all the provisions of Section 2.E.5 regarding
conversion and this Section 2.E.6 regarding adjustments for anti-dilution
consistent with the tenor and purpose of such actions.

     7.  Status on Conversion. Upon any conversion of shares of the Series H
Preferred Stock, the shares so converted shall be canceled.

     8.  Sufficient Securities. Any provision that entitles a holder of Series H
Preferred Stock to exercise rights, or otherwise be treated, on an as converted
basis shall be construed and applied as if all of the shares into which each
such share of Series H Preferred Stock is convertible are authorized but
unissued and available for issuance upon such conversion.

                                       19

<PAGE>

     9.  Amendment and Waiver. No amendment, modification or waiver shall be
binding or effective with respect to any provision relating to the rights of the
Series H Preferred Stock hereof without the prior written consent or vote of the
holders of a majority of the Series H Preferred Stock outstanding at the time
such action is taken.

     F.  Series I Preferred Stock.
         ------------------------

     1.  Ranking. The Series I Preferred Stock shall rank senior to all other
equity securities of the Corporation, and any other series or class of the
Corporation's preferred stock, common stock or other capital stock, now or
hereafter authorized (other than the Series E Preferred Stock, the Series F
Preferred Stock and the Designated Senior Securities) with respect to dividend
rights and rights on liquidation, dissolution, redemption or winding up. The
Series E Preferred Stock, Series F Preferred Stock and Series I Preferred Stock
shall rank on a parity with each other with respect to such matters.

     2.  Dividends and Distributions.
         ---------------------------

     (a) Dividends. The holders of shares of Series I Preferred Stock shall be
entitled to receive dividends, as, when and if declared by the Board of
Directors from Legally Available Funds. Dividends on each share of Series I
Preferred Stock shall accrue on a daily basis at the rate of 10% per annum on
the sum of the Liquidation Value thereof plus all accumulated and unpaid
dividends thereon from and including the date of issuance of such Series I
Preferred Stock to and excluding the first to occur of (i) the date on which
such share of Series I Preferred Stock is redeemed by the Corporation, (ii) the
date on which the Liquidation Value of such Series I Preferred Stock (plus an
amount equal to all accumulated or accrued and unpaid dividends thereon) is paid
to the holder thereof in connection with the liquidation of the Corporation; or
(iii) the date on which such share of Series I Preferred Stock is otherwise
acquired by the Corporation. Such dividends shall accrue whether or not they
have been declared and whether or not there are Legally Available Funds, and
such dividends shall be cumulative such that all accrued and unpaid dividends
shall be fully paid or declared with funds irrevocably set apart for payment
before any dividends, distributions, redemptions or other payments may be made
with respect to any Junior Equity (including, any Series D Preferred Stock,
Series G Preferred Stock or Series H Preferred Stock) (other than Permitted
Redemptions). The date on which the Corporation initially issues any share of
Series I Preferred Stock shall be deemed to be its "date of issuance" regardless
of the number of times subsequent transfer of such share of Series I Preferred
Stock is made on the stock records maintained by or for the Corporation and
regardless of the number of certificates which may be issued to evidence such
share of Series I Preferred Stock.

     (b) Dividend Reference Dates. To the extent not paid on the first Dividend
Reference Date following the date of issuance of the Series I Preferred Stock,
all dividends which have accrued on each share of Series I Preferred Stock
outstanding during the quarterly period (or a portion thereof in the case of the
initial Dividend Reference Date with respect to the Series I Preferred Stock)
ending upon each such Dividend Reference Date shall be accumulated and shall
remain accumulated dividends with respect to such share of Series I Preferred
Stock.

                                       20

<PAGE>

     (c) Distribution of Partial Dividend Payments. If at any time the
Corporation pays less than the total amount of dividends then accrued with
respect to the Series E Preferred Stock, the Series F Preferred Stock or Series
I Preferred Stock, such payment shall be distributed pro rata among the holders
thereof based upon the aggregate accrued but unpaid dividends on the shares of
Series F Preferred Stock, the Series E Preferred Stock and the Series I
Preferred Stock held by such holders thereof.

     (d) Restriction on Dividends and Distributions. So long as any Series I
Preferred Stock remains outstanding, without the prior written consent or vote
of the holders of a majority of the outstanding shares of Series E Preferred
Stock, Series F Preferred Stock and Series I Preferred Stock (voting together as
a single class), the Corporation shall not, nor shall it permit any Subsidiary
to, redeem, purchase or otherwise acquire directly or indirectly any Junior
Equity (including, any Series D Preferred Stock, Series G Preferred Stock or
Series H Preferred Stock), nor shall the Corporation directly or indirectly pay
or declare any dividend or make any distribution upon any Junior Equity
(including, any Series D Preferred Stock, Series G Preferred Stock or Series H
Preferred Stock) (other than a Permitted Redemption or in connection with a
liquidation, dissolution or winding up of the Corporation (including a Deemed
Liquidation Event) made in accordance with Section 2.F.4 below).

     3.  Voting Rights. Other than the rights otherwise set forth herein, the
holders of Series I Preferred Stock shall not have any right to
vote except, and solely to the extent, as required under applicable law.

     4.  Liquidation, Dissolution or Winding Up.
         --------------------------------------

     (a) In the event of any liquidation, dissolution or winding up of the
Corporation, either voluntary or involuntary (including, without limitation, a
Deemed Liquidation Event), before any distribution or payment to holders of
Common Stock or any other capital stock (including, without limitation, the
Junior Equity, the Series D Preferred Stock, the Series G Preferred Stock, and
the Series H Preferred Stock, but excluding the Series E Preferred Stock, the
Series F Preferred Stock and the Designated Senior Securities (if applicable)),
but on parity with the payment to the holders of the Series E Preferred Stock of
the Series E Senior Preference and the holders of the Series F Preferred Stock
of the Series F Senior Preference, the holders of shares of Series I Preferred
Stock shall be entitled to be paid an amount equal to the Liquidation Value
(plus any accumulated or accrued but unpaid dividends thereon) with respect to
each share of Series I Preferred Stock (the "Series I Senior Preference").

     (b) If upon any liquidation, dissolution or winding up of the Corporation
(including, without limitation, a Deemed Liquidation Event), the assets of the
Corporation available for distribution to the holders of Series E Preferred
Stock, Series F Preferred Stock and Series I Preferred Stock shall be
insufficient to pay in full to such holders the sums which such holders are
entitled to receive pursuant to such holders' Series E Senior Preference, Series
F Senior Preference and Series I Senior Preference, then all of the assets so
available for distribution shall be distributed among and paid to such holders
ratably in proportion to the amounts that would be payable to such holders if
such assets were sufficient to permit payment in full.

                                       21

<PAGE>

     (c) Whenever a distribution provided for in this Section 2.F.4 shall be
payable in property other than cash, the value of such distribution shall be the
fair market value of such property determined in good faith by the Corporation's
Board of Directors (or as otherwise set forth in Section 2.B.4(c) or Section
2.C.4(c) above).

     5.  Redemption at the Option of the Corporation. The Corporation may, at
any time and from time to time at its option, redeem all or any portion of the
shares of Series I Preferred Stock then outstanding. If fewer than all of the
outstanding shares of the Series I Preferred Stock are to be redeemed as
provided in this Section 2.F.5, the shares to be so redeemed shall be determined
pro rata among the holders of record as of the applicable Redemption Date. The
total sum payable by the Corporation per share of Series I Preferred Stock to be
so redeemed shall equal the Liquidation Value thereof plus an amount equal to
all accumulated or accrued and unpaid dividends thereon (the "Series I
Redemption Price"). If the Corporation shall elect to exercise its rights under
this Section 2.F.5, written notice of such election shall be given to the
holders of record of the outstanding shares of Series I Preferred Stock, not
less than ten (10) calendar days nor more than thirty (30) calendar days prior
to the Redemption Date. Each such notice shall state: (i) the Redemption Date
and (ii) the number of shares to be redeemed. Promptly following the Redemption
Date, each holder of Series I Preferred Stock so redeemed shall promptly
surrender to the Corporation, at its principal corporate office, certificates
representing the shares so redeemed, duly endorsed in blank or accompanied by
proper instruments of transfer (or providing notice of loss, mutilation or
destruction thereof and indemnifying the Corporation for any loss by it in
connection with such loss, mutilation or destruction, or agreement otherwise in
the form described in Section 2.G.2 hereof). If fewer than all of the shares
represented by any such certificate are redeemed, a new certificate representing
the unredeemed shares shall be promptly issued to the holder of record thereof.
For each share of Series I Preferred Stock which is to be redeemed pursuant to
this Section 2.F.5, the Corporation shall be obligated on the Redemption Date to
pay to the holder thereof (upon surrender by such holder of certificates
representing shares to be so redeemed as described in the preceding sentence)
out of Legally Available Funds an amount in immediately available funds equal to
the Series I Redemption Price. On an after the Redemption Date and the payment
(or setting apart for payment in the case of a failure by a holder to surrender
certificates representing the shares so redeemed) of the Series I Redemption
Price by the Corporation, all rights of any holder of the Series I Preferred
Stock so redeemed, including the rights, if any, to receive notices and vote,
shall cease and terminate (other than the right to promptly receive certificates
for the number of unredeemed shares of Series I Preferred Stock if fewer than
all of the shares represented by any such certificate were redeemed); and such
redeemed shares shall no longer be deemed to be outstanding, whether or not the
certificates representing such shares have been received by the Corporation.

     6.  Status of Redemption. Upon any redemption of shares of the Series I
Preferred Stock, the shares so redeemed shall be canceled.

     7.  Amendment and Waiver. No amendment, modification or waiver shall be
binding or effective with respect to any provision set forth in this Section 2.F
without the prior written consent or vote of the holders of a majority of the
Series I Preferred Stock outstanding at the time such action is taken.

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     G. General Provisions Applying to the Series D Preferred Stock, the Series
E Preferred Stock, the Series F Preferred Stock, the Series G Preferred Stock,
the Series H Preferred Stock and the Series I Preferred Stock.

     1. Registration of Transfer. The Corporation shall keep at its principal
office a register for the registration of the Series D Preferred Stock, the
Series E Preferred Stock, the Series F Preferred Stock, the Series G Preferred
Stock, the Series H Preferred Stock and the Series I Preferred Stock. Upon the
surrender of any certificate representing the Series D Preferred Stock, the
Series E Preferred Stock, the Series F Preferred Stock, the Series G Preferred
Stock, the Series H Preferred Stock or the Series I Preferred Stock at such
place, the Corporation shall, at the request of the record holder of such
certificate, execute and deliver (at the Corporation's expense) a new
certificate or certificates in exchange therefore representing in the aggregate
the number of the Series D Preferred Stock, the Series E Preferred Stock, the
Series F Preferred Stock, the Series G Preferred Stock, the Series H Preferred
Stock or the Series I Preferred Stock, as applicable, represented by the
surrendered certificate. Each such new certificate shall be registered in such
name and shall represent such number of the Series D Preferred Stock, the Series
E Preferred Stock, the Series F Preferred Stock, the Series G Preferred Stock,
the Series H Preferred Stock or the Series I Preferred Stock, as applicable, as
is requested by the holder of the surrendered certificate and shall be
substantially identical in form to the surrendered certificate, and dividends
shall accrue on the Series D Preferred Stock, the Series E Preferred Stock, the
Series F Preferred Stock or the Series I Preferred Stock, as applicable,
represented by such new certificate from the date to which dividends have been
fully paid on such Series D Preferred Stock, Series E Preferred Stock, Series F
Preferred Stock or Series I Preferred Stock, as applicable, represented by the
surrendered certificate.

     2. Replacement. Upon receipt of evidence reasonably satisfactory to the
Corporation (an affidavit of the registered holder shall be satisfactory) of the
ownership and the loss, theft, destruction or mutilation of any certificate
evidencing shares of Series D Preferred Stock, Series E Preferred Stock, Series
F Preferred Stock, Series G Preferred Stock, the Series H Preferred Stock or
Series I Preferred Stock, and in the case of any such loss, theft or
destruction, upon receipt of indemnify reasonably satisfactory to the
Corporation (provided that if the holder is a financial institution or other
institutional investor its own agreement shall be satisfactory), or, in the case
of any such mutilation upon surrender of such certificate, the Corporation shall
(at its expense) execute and deliver in lieu of such certificate a new
certificate of like kind representing the number of shares of such class
represented by such loss, stolen, destroyed or mutilated certificate and dated
the date of such lost, stolen, destroyed or mutilated certificate, and dividends
shall accrue on the Series D Preferred Stock, Series E Preferred Stock, the
Series F Preferred Stock or the Series I Preferred Stock, as applicable,
represented by such new certificates from the to which dividends have been fully
paid on such lost, stole, destroyed or mutilated certificates.

     3. Notices. Except as otherwise expressly provided hereunder, all notices
referred to herein shall be in writing and shall be delivered by
registered or certified mail, return receipt requested and postage prepaid, or
by reputable overnight courier service, charges prepaid, and shall be deemed to
have been given when so mailed or sent (i) to the Corporation at its principal
executive offices and (ii) to any stockholder, at such holder's address as it
appears in the stock records of the Corporation (unless otherwise indicated by
any such holder). In addition

                                       23

<PAGE>

to (and not in limitation of) any rights of the holders of the Series D
Preferred Stock, the Series E Preferred Stock, the Series F Preferred Stock, the
Series G Preferred Stock, the Series H Preferred Stock and the Series I
Preferred Stock to receive notices hereunder, the holders of the Series E
Preferred Stock, the Series F Preferred Stock and the Series I Preferred Stock
shall be entitled to the rights set forth in the next sentence. If notice of any
event or transaction is to be given to the holders of any class or series of
Junior Equity pursuant to the terms thereof as set forth in the Certificate of
Incorporation of the Corporation, or in any certificate of designation
thereunder, in each case, as amended, and if the holders of the Series D
Preferred Stock, the Series E Preferred Stock, the Series F Preferred Stock, the
Series G Preferred Stock, the Series H Preferred Stock or the Series I Preferred
Stock are entitled to receive a notice regarding such an event or transaction
pursuant to the terms hereof, then the holders of such Series D Preferred Stock,
Series E Preferred Stock, Series F Preferred Stock, Series G Preferred Stock,
the Series H Preferred Stock or the Series I Preferred Stock, as applicable,
shall be entitled to such notice (to the extent it has not been previously
given) at the same time as such notice is given to any holder of Junior Equity.

     4. Adjustment. To the extent not otherwise provided hereunder, all numbers
and amounts set forth herein which refer to share prices or amounts shall be
appropriately adjusted to reflect stock splits, stock dividends, combinations of
shares and other recapitalizations affecting the Series D Preferred Stock, the
Series E Preferred Stock, the Series F Preferred Stock, the Series G Preferred
Stock, the Series H Preferred Stock or Series I Preferred Stock, as applicable.

     5. Definitions. For the purposes of this Certificate of Designations, the
following terms shall have the meanings indicated:

     "Board of Directors" shall mean the Board of Directors of the Corporation.

     "Certificate of Incorporation" shall mean the Certificate of Incorporation,
as amended (including, without limitation, by any certificate of amendment or
certificate of designation), of the Corporation.

     "Commission" means the Securities and Exchange Commission or any similar
agency then having jurisdiction to enforce the Securities Act.

     "Common Stock" shall mean the Corporation's Common Stock, par value $.001
per share.

     "Deemed Liquidation Event" means (i) any sale or transfer of more than 50%
of the assets of the Corporation and its Subsidiaries on a consolidated basis
(measured either by book value in accordance with generally accepted accounting
principles consistently applied or by fair market value determined in the
reasonable good faith judgment of the Corporation's Board of Directors) in any
transaction or series of transactions (other than sales in the ordinary course
of business), and (ii) any merger or consolidation of the Corporation with or
into any other entity or any sale of the capital securities of the Company,
except (y) in the case of a merger or consolidation, for a merger or
consolidation in which the Corporation is the surviving corporation, the terms
of the Series D Preferred Stock, the Series E Preferred Stock, the Series F

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<PAGE>

Preferred Stock, the Series G Preferred Stock, the Series H Preferred Stock
and the Series I Preferred Stock are not changed, and (z) in the case of a
merger, consolidation or sale of capital securities, after giving effect to such
merger, consolidation or sale, the direct or indirect holders of the
Corporation's outstanding capital stock possessing a majority of the voting
power (under ordinary circumstances) to elect a majority of the Corporation's
Board of Directors immediately prior to the merger, consolidation or sale shall
continue to own the Corporation's outstanding capital stock possessing the
voting power to elect a majority of the Corporation's Board of Directors.
Notwithstanding the foregoing, a Deemed Liquidation Event shall be deemed not to
have occurred unless the holders of a majority of the Series E Preferred Stock
and Series F Preferred (voting together as a single class) agree in writing.

     "Designated Senior Securities" shall mean those securities which are
expressly designated as senior to the Series E Preferred Stock, the Series F
Preferred Stock and the Series I Preferred Stock (provided that no such
securities shall be so designated without the prior written consent of a
majority of the outstanding Series E Preferred Stock, the Series F Preferred
Stock and the Series I Preferred Stock voting together as a single class).

     "Governmental Authority" shall mean the government of any nation, state,
city, locality or other political subdivision or any thereof, any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government, and any Corporation or other entity
owned or controlled, through stock or capital ownership or otherwise, by any of
the foregoing.

     "Junior Equity" shall mean, with respect to any class or series of capital
stock or other equity securities of the Corporation, any other class or series
of capital stock or other equity securities of the Corporation that rank junior
upon liquidation to such class or series of capital stock or other equity
securities of the Corporation, including, without limitation, the Corporation's
Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock,
Series H Preferred Stock and Common Stock.

     "Liquidation Value" shall mean, with respect to each share of Series D
Preferred Stock, Series E Preferred Stock, Series F Preferred Stock and Series I
Preferred Stock, $1,000 per share.

     "Permitted Redemption" shall mean a redemption by the Corporation of the
Series D Preferred Stock or the Series I Preferred Stock as set forth herein or
otherwise agreed to by the holders of a majority of the outstanding Series E
Preferred Stock and the Series F Preferred Stock (voting together as a single
class).

     "Person" shall mean any individual, firm, corporation, limited liability
company, partnership, trust, incorporated or unincorporated association, joint
venture, joint stock company, Governmental Authority or other entity of any
kind, and shall include any successor (by merger or otherwise) of any such
entity.

     "Preference Factor" shall, with respect to a share of Series E Preferred
Stock or Series F Preferred Stock, as the case may be, mean a number equal to
(a) 1.5 until but not including the one year anniversary from the date of
issuance of such share, (b) 2.0 for the period

                                       25

<PAGE>

beginning the one year anniversary from the date of issuance of such share and
until but not including the two year anniversary from the date of issuance of
such share, and (c) 2.5 from and after the two year anniversary of the date of
issuance of such share; provided that, notwithstanding the foregoing, the
Preference Factor with respect to a share of Series F Preferred Stock which was
issued upon conversion of Series E Preferred Stock shall be determined as if the
date of issuance of such share of Series F Preferred Stock were the date of
issuance of the share of Series E Preferred Stock which had been converted into
such share.

     "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations of the Commission thereunder.

     "Securities Purchase Agreement" shall mean that certain Securities Purchase
Agreement, dated as of November 15, 2002, by and among the Corporation and SWR
Investments LLC.

     "Series G Shared Preference" shall be an amount equal to the product of (a)
0.1, times (b) the sum of the aggregate Series E Shared Preference and the
Series F Shared Preference (calculated based on the number of shares of Series E
Preferred Stock and Series F Preferred Stock issued pursuant to Section 1.1 or
Section 1.4 of the Securities Purchase Agreement), times (c) a fraction, the
numerator of which is the number of issued and outstanding shares of Series G
Preferred Stock and the denominator of which is the number of authorized
(whether or not issued and outstanding) Series G Preferred Stock.

     "Shared Preference" shall mean, collectively, the Series D Shared
Preference, the Series E Shared Preference, the Series F Shared Preference and
the Series G Shared Preference.

     "Subsidiary" means with respect to any Person, (i) any corporation at least
a majority of whose outstanding voting stock is owned, directly or indirectly,
by such Person or by one or more of its Subsidiaries, or by such Person and one
or more of its Subsidiaries, (ii) any partnership, limited liability company,
joint venture or similar entity, at least a majority of whose outstanding
partnership, membership or similar interests shall at the time be owned by such
Person, or by one or more of its Subsidiaries, or by such Person and one or more
of its Subsidiaries and (iii) any limited partnership or limited liability
company of which such Person or any of its Subsidiaries is a general partner or
managing member. For the purposes of this definition, "voting stock" means
shares, interests, participations or other equivalents in the equity interest
(however designated) in such Person having ordinary voting power for the
election of a majority of the directors (or the equivalent) of such Person,
other than shares, interests, participations or other equivalents having such
power only by reason of contingency. For purposes hereof, a Person or Persons
shall be deemed to have a majority ownership interest in a limited liability
company, partnership, association or other business entity if such Person or
Persons shall be allocated a majority of limited liability company, partnership,
association or other business entity gains or losses or shall be or control any
managing director or general partner of such limited liability company,
partnership, association or other business entity.

                                       26

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