Document:

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                                                                 Exhibit (10)(y)

                            THE LUBRIZOL CORPORATION
                             2005 EXECUTIVE COUNCIL
                           DEFERRED COMPENSATION PLAN

1. Purpose. The purpose of this 2005 Executive Council Deferred Compensation
Plan (the "Plan") is to permit a person who is a member of the Executive Council
(sometimes hereinafter referred to as the "Member" or as the "Participant"), and
who is employed by The Lubrizol Corporation (the "Company"), to defer a portion
of such Member's compensation earned in calendar years beginning on or after
January 1, 2005, as provided in this Plan.

2. Administration. The Plan shall be administered by the Organization and
Compensation Committee of the Board of Directors of the Company (the
"Committee"). The Committee's interpretation and construction of all provisions
of the Plan shall be binding and conclusive upon all Participants and their
heirs and/or successors.

3. Right to Defer Compensation.

      (a) A Member may, at any time prior to January 1 of a given calendar year,
elect, for one or more future successive calendar years commencing with the
calendar year immediately following the election (each a "Participation Year"),
to defer under the Plan a pre-selected fixed dollar amount or percentage of such
Member's annual variable compensation, if any (the "deferred compensation"),
under the Company's annual incentive plan ("Incentive Plan"), which such
Participant may thereafter be entitled to receive for services performed during
each elected Participation Year; provided, however that the actual amount
deferred will be the elected amount less any applicable withholding taxes.

      (b) The election under this Section 3 shall take effect on the first day
of the first elected Participation Year and such election shall be irrevocable
for any elected Participation Year once such Participation Year shall have
commenced.

      (c) Notwithstanding paragraphs (a) and (b), when an individual Member
first becomes eligible to participate in the Plan, the newly eligible Member may
make the election under this Section 3 to defer the specified compensation for
services to be performed subsequent to the date specified in the election and
for the remainder of the calendar year in which the election under this Section
3 is made, provided that such election is made within 30 days after the date
that the Member is notified of the Member's eligibility.

      (d) All elections under this Plan shall be made by written notice (on a
form provided by the Company) specifying the deferred compensation, if any,
determined under paragraph (a).

      (e) A Participant must make an election for each Participation Year.
Notwithstanding paragraph (b) and the first sentence of this paragraph (e), any
variable compensation earned after the end of the first month in which a
Participant under this Plan ceases to be a Member, as defined in Section 1, but
continues to be employed by the Company, shall not be deferred, provided
however, the balance in the Participant's

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Stock Deferral Accounts shall continue to be held and administered pursuant to
the Plan.

      (f) All notices by a Participant under the Plan shall be in writing and
shall be given to the Company's Vice President, Human Resources.

4. Stock Deferral Accounts and Stock Matching Accounts.

      (a) At the close of business of the day on which the Incentive Plan
deferred compensation would have been payable to the Participant in the absence
of the election under the Plan to defer payment thereof, there shall be credited
to a separate Stock Deferral Account and Stock Matching Account for each
Participant full and fractional stock equivalent units ("Units") which shall be
established as hereinafter provided and shall be maintained for each Participant
on the Company's records.

      (b) The number of full and fractional Units that shall be credited to a
separate Stock Deferral Account for a Participant shall be equal to an amount
determined by dividing the Participant's deferred compensation for the
applicable Participation Year by the average of the closing price for Lubrizol
Common Shares ("Shares") on the New York Stock Exchange ("NYSE") composite
transactions reporting system ("composite tape") for each of the ten (10)
consecutive trading days commencing on the fourth business day following the
release of earnings for such Participation Year.

      (c) The number of full and fractional Units that shall be credited to a
separate Stock Matching Account for a Participant shall be equal to an amount
determined by multiplying the number of Units determined in paragraph (b) by
..25.

      (d) To the extent that, at the time Units are credited to a Stock Deferral
Account Stock Matching Account of a Participant, any federal, state or local
payroll withholding tax applies (e.g., Medicare withholding tax), the
Participant shall be responsible for the payment of such amount to the Company
and the Company shall promptly remit such amount to the proper taxing authority.

      (e) The amount of deferred compensation used in the formulae set forth in
paragraphs (b) and (c) shall not constitute sums due and owing to Participant.
Such amounts shall be used solely as part of the formulae to determine the
number of full and fractional Units.

      (f) As of each dividend payment date established by the Company for the
payment of cash dividends with respect to its Shares, the Company shall credit
each separate Stock Deferral Account and Stock Matching Account of a Participant
with an additional number of whole and/or fractional Units equal to:

            (i)   the product of (x) the dividend per Share which is payable
                  with respect to such dividend payment date, multiplied by (y)
                  the number of whole and fractional Units credited to the
                  separate Stock Deferral Account and Stock Matching Account,
                  respectively, of the Participant as of such payment date;

                                   divided by

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            (ii)  the closing price of a Share on the dividend payment date (or
                  if Shares were not traded on that date, on the next preceding
                  day on which Shares were so traded), as reported on the NYSE-
                  composite tape.

      (g) At no time prior to actual delivery of Shares pursuant to the Plan
shall the Company be obligated to purchase or reserve Shares for delivery to any
Participant and a Participant shall not be a shareholder or have any of the
rights of a shareholder with respect to the Units credited to each separate
Stock Deferral Account or Stock Matching Account of a Participant.

5. Payment of Deferred Compensation.

      (a) All Units credited to a separate Stock Deferral Account and Stock
Matching Account of Participant, including dividend equivalents thereon, shall
be payable to the Participant at the end of three years from the first date
Units were credited to such separate Stock Deferral Account and Stock Matching
Account of the Participant under Section 4(a) for a particular Participation
Year; provided, however, that a Participant may elect once for any Participation
Year of deferral, to change the date of distribution to another in-service year
or six (6) months after the Participant has separated from service; provided
further, that any such modification must be made in writing at least twelve (12)
months prior to the original date of distribution; provided further, that the
deferred distribution date must be at least five (5) years after the date
originally selected.

      (b) All distributions or payments of Units to a Participant in the
Participant's Stock Deferral Account shall be made in Shares equal to the number
of whole Units credited to the separate Stock Deferral Account(s) of the
Participant which become payable in accordance with Section 5(a). Any fractional
number of Units shall be paid in cash in lieu of Shares.

      (c) All distributions or payments of Units to a Participant in the
Participant's Stock Matching Account shall be made in cash equal to the number
of whole Units credited to the separate Stock Matching Account(s) of the
Participant, which become payable in accordance with Section 5(a) multiplied by
the closing price for a Share on the NYSE composite tape on the date the Stock
Matching Account(s) become payable.

      (d) To the extent that, at the time Shares are distributed to a
Participant, any federal, state or local payroll withholding tax applies, tax
withholding for distributions shall be made from those Shares that would provide
for the federal, state and/or local income tax at the rates then applicable for
supplemental wages, unless otherwise requested by the Participant, but in no
event less than the statutory minimums for tax withholding. For purposes of
determining the number of Shares that are to be withheld to provide for the tax
withholding, Shares shall be valued at the closing price on the New York Stock
Exchange of a Share on the date the Shares are distributable (or if the Shares
were not traded on that date, on the next preceding day on which the Shares were
so traded). If the determination of the tax withholding would require the
withholding of a fractional Share, the Company shall withhold the nearest whole
number of Shares needed to pay the tax withholding, rounded up, and remit to the
Participant in cash the amount of the excess after the withholding taxes have
been satisfied.

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      (e) In the event a Participant dies prior to receiving payment of the
entire amount in each separate Stock Deferral Account and Stock Matching Account
of the Participant, the unpaid balance shall be paid to such beneficiary as the
Participant may have designated in writing to the Vice President, Human
Resources, of the Company as the beneficiary to receive any such post-death
distribution under the Plan or, in the absence of such written designation, to
the Participant's legal representative or to the beneficiary designated in the
Participant's last will as the one to receive such distributions. Distributions
subsequent to the death of a Participant may be made either in accordance with
Section 5(a) or earlier, as determined by the Committee.

      (f) To the extent the Committee deems necessary, the Shares distributed to
a Participant pursuant to Section 5(a) or 6 or to a successor pursuant to
Section 5(e) may contain such restrictions on the right of immediate transfer as
the Committee may reasonably determine.

6. Acceleration of Payments. The Committee may accelerate the distribution of
part or all of one or more of a Participant's separate Stock Deferral Accounts
and Stock Matching Accounts for reasons of an unforeseeable emergency that
cannot be met using other resources. For purposes of the Plan, an unforeseeable
emergency shall be deemed to exist in the event the Committee determines that a
Participant needs a distribution to meet a severe hardship to the Participant
resulting from a sudden or unexpected illness or accident of the Participant or
a member of the Participant's family, loss of the Participant's property due to
casualty, or other similar extraordinary and unforeseeable circumstance arising
as a result of events beyond the control of the Participant. A distribution
based on financial hardship shall not exceed the amount required to meet the
immediate financial need created by the hardship.

7. Non-assignability. None of the rights or interests in any of the
Participant's separate Stock Deferral Accounts and Stock Matching Accounts
shall, at any time prior to actual payment or distribution pursuant to the Plan,
be assignable or transferable in whole or in part, either voluntarily or by
operation of law or otherwise, and such rights and interest shall not be subject
to payment of debts by execution, levy, garnishment, attachment, pledge,
bankruptcy or in any other manner.

8. Interest of Participant. The Company shall be under no obligation to
segregate or reserve any funds or other assets for purposes relating to the Plan
and, except as set forth in this Plan, no Participant shall have any rights
whatsoever in or with respect to any funds or other assets held by the Company
for purposes of the Plan or otherwise. Each Participant's separate Stock
Deferral Accounts and Stock Matching Accounts maintained for purposes of the
Plan merely constitutes a bookkeeping entry on records of the Company,
constitutes the unsecured promise and obligation of the Company to make payments
as provided herein, and shall not constitute any allocation whatsoever of any
cash or other assets of the Company or be deemed to create any trust or special
deposit with respect to any of the Company's assets. Notwithstanding the
foregoing provisions, nothing in this Plan shall preclude the Company from
setting aside Shares or funds in trust pursuant to one or more trust agreements
between a trustee and the Company. However, no Participant shall have any
secured interest or claim in any assets or property of the Company or any such
trust and all Shares or funds contained in such trust shall remain subject to
the claims of the Company's general creditors.

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9. Miscellaneous. In the event of any change in the number of outstanding Shares
by reason of any stock dividend, stock split up, recapitalization, merger,
consolidation, exchange of shares or other similar corporate change, the number
of Units credited to each separate Stock Deferral Account and Stock Matching
Account of a Participant shall be appropriately adjusted to take into account
any such event.

10. Amendment. The Board of Directors of the Company, or the Organization and
Compensation Committee, may, from time to time, amend or terminate the Plan,
provided that no such amendment or termination of the Plan shall adversely
affect any Stock Deferral Account or Stock Matching Account of a Participant as
it existed immediately before such amendment or termination or the manner of
distribution thereof, unless such Participant shall have consented thereto in
writing. Notice of any amendment or termination of the Plan shall be given
promptly to all Participants.

11. Plan Implementation. This Plan is adopted and effective for deferrals of
variable compensation earned for calendar years beginning on and after January
1, 2005.

                                        5Exhibit 4.1

                           CERTIFICATE OF DESIGNATION
                                       OF
                    SERIES A 10% CONVERTIBLE PREFERRED STOCK
                                       OF
                               MEDSOLUTIONS, INC.

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

                   Pursuant to Article 2.13(A) and (D) of the
                         Texas Business Corporation Act

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

         The undersigned  DOES HEREBY CERTIFY that the following  resolution was
duly  adopted  by  the  Board  of  Directors  of  MedSolutions,  Inc.,  a  Texas
corporation (the "Corporation"), at a meeting duly convened and held, at which a
quorum was present and acting throughout or by unanimous written consent:

         "RESOLVED,  that  pursuant to the  authority  conferred on the Board of
Directors of the  Corporation  (the "Board of Directors")  by the  Corporation's
Articles of  Incorporation,  as amended,  the  issuance of a series of preferred
stock,  par value $.001 per share,  of the  Corporation  which shall  consist of
500,000  shares of  preferred  stock which shall be  designated  as Series A 10%
Convertible  Preferred  Stock be, and the same  hereby is,  authorized;  and the
President and Secretary or Assistant  Secretary of the  Corporation be, and they
hereby are,  authorized  and directed to execute and file with the  Secretary of
State  of the  State of  Texas a  Certificate  of  Designation  of  Series A 10%
Convertible Preferred Stock of the Corporation fixing the designations,  powers,
preferences  and rights of the shares of such  series,  and the  qualifications,
limitations or restrictions  thereof (in addition to the  designations,  powers,
preferences  and rights,  and the  qualifications,  limitations or  restrictions
thereof,  set forth in the Articles of Incorporation  which may be applicable to
the Corporation's preferred stock), as follows:

         1.  Number  of  Shares;  Designation.  A total  of  500,000  shares  of
preferred  stock,  par value  $.001 per  share,  of the  Corporation  are hereby
designated as Series A 10% Convertible Preferred Stock (the "Series").

         2.  Rank.  The Series  shall,  with  respect  to payment of  dividends,
redemption  payments and rights upon  liquidation,  dissolution or winding-up of
the affairs of the Corporation, rank:

         (a) Senior and prior to the common stock, par value $.001 per share, of
the Corporation  (the "Common  Stock");  and any additional  series of preferred
stock which may in the future be issued by the Corporation and are designated in
the  amendment  to  the  Articles  of   Incorporation   or  the  certificate  of
designations  establishing  such additional series of preferred stock as ranking

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junior to the  shares of the  Series.  Any shares of the  Corporation's  Capital
Stock (as defined in Paragraph 10 hereof)  which are junior to the shares of the
Series with respect to the payment of dividends are  hereinafter  referred to as
"Junior  Dividend  Shares" and any shares  which are junior to the shares of the
Series  with  respect  to  redemption,  payment  and  rights  upon  liquidation,
dissolution  or winding-up  of the affairs of the  Corporation  are  hereinafter
referred to as "Junior Liquidation Shares".

         (b) Pari passu with any additional  series of preferred stock which may
in the future be issued by the  Corporation  and are designated in the amendment
to the Articles of Incorporation or the certificate of designations establishing
such additional  series of preferred stock as ranking equal to the shares of the
Series or which do not state they are Junior  Dividend Shares or Senior Dividend
Shares (as defined below).  Any shares of the Corporation's  Capital Stock which
are equal to the shares of the Series with  respect to the payment of  dividends
are hereinafter referred to as "Parity Dividend Shares" and any shares which are
equal to the shares of the Series with respect to redemption, payment and rights
upon  liquidation,  dissolution or winding-up of the affairs of the  Corporation
are hereinafter referred to as "Parity Liquidation Shares".

         (c) Junior to any additional series of preferred stock which may in the
future be issued by the  Corporation  and are designated in the amendment to the
Articles of Incorporation or the certificate of designations  establishing  such
additional  series of  preferred  stock as  ranking  senior to the shares of the
Series.  Any shares of the  Corporation's  Capital Stock which are senior to the
shares of the Series with  respect to the payment of dividends  are  hereinafter
referred to as "Senior  Dividend  Shares" and any shares which are senior to the
shares of the  Series  with  respect to  redemption,  payment  and  rights  upon
liquidation,  dissolution  or winding-up of the affairs of the  Corporation  are
hereinafter referred to as "Senior Liquidation Shares".

The Corporation may not issue additional shares of preferred stock which are not
(a)  Junior  Stock (as  defined  in  Paragraph  3(c)  below) or (b) both  Parity
Liquidation Shares and Parity Dividend Shares without the consent of the holders
of a majority of the then outstanding shares of the Series.

         3. Dividends.

         (a) The dividend  rate on shares of the Series shall be $0.15 per share
per  annum.  Dividends  on  shares  of the  Series  shall be  fully  cumulative,
accruing,  without  interest,  from the date of original  issuance of the Series
(the "Purchase Date") through the date of redemption or conversion thereof,  and
shall be payable in arrears,  when, as and if declared by the Board of Directors
out of funds legally  available for the payment of dividends,  on March 31, June
30,  September  30 and  December  31 of each year (each such date,  a  "Dividend
Payment Date"),  commencing December 31, 2004, except that if such date is not a
business  day then  the  dividend  shall be  payable  on the  first  immediately
succeeding  business day (as used herein, the term "business day" shall mean any
day except a Saturday,  Sunday or day on which banking  institutions are legally
authorized to close in Dallas, Texas). Dividends payable on March 31 of any year
shall be payable for the period from  January 1 of that year  through such March
31  Dividend  Payment  Date or such  earlier  date on which  accrued  and unpaid
dividends  are payable due to  redemption  or conversion of shares of the Series
(each  such  period  being  hereinafter  referred  to as a  "Dividend  Period").

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Dividends  payable on June 30 of any year shall be payable  for the period  from
April 1 of that year through such June 30 Dividend  Payment Date or such earlier
date on which  accrued and unpaid  dividends  are payable due to  redemption  or
conversion of shares of the Series (each such period being hereinafter  referred
to as a "Dividend Period").  Dividends payable on September 30 of any year shall
be payable for the period from July 1 of that year  through  such  September  30
Dividend Payment Date or such earlier date on which accrued and unpaid dividends
are payable due to  redemption  or conversion of shares of the Series (each such
period being hereinafter referred to as a "Dividend Period").  Dividends payable
on December  31 of any year shall be payable  for the period  from  October 1 of
that year through such December 31 Dividend Payment Date or such earlier date on
which  accrued and unpaid  dividends are payable due to redemption or conversion
of shares of the Series  (each such period  being  hereinafter  referred to as a
"Dividend Period"),  except that the Dividend Period ending on December 31, 2004
shall commence on October 1, 2004 and end on December 31, 2004.  Dividends shall
be  payable in cash.  Each  dividend  shall be paid to the  holders of record of
shares of the Series as they appear on the stock register of the  Corporation on
the record date,  not less than 10 nor more than 60 days  preceding  the payment
thereof, as shall be fixed by the Board of Directors. Dividends payable for each
Dividend  Period  shall be  computed  on the basis of a  360-day  year of twelve
30-day  months and rounded to the nearest  cent and shall be paid,  if there are
funds  legally  available  therefor,  to the  holders of record of shares of the
Series within thirty (30) days following the applicable  Dividend  Payment Date.
Dividends on account of arrearages for any past Dividend  Period may be declared
and paid at any time, without reference to any regular Dividend Payment Date, to
holders of record on such date, not exceeding 45 days preceding the payment date
thereof, as may be fixed by the Board of Directors of the Corporation. Dividends
shall accrue  regardless of whether the Corporation has earnings,  whether there
are funds legally available therefor and/or whether declared.  No interest shall
be payable with respect to any dividend payment that may be in arrears.  Holders
of shares of the Series called for redemption between the close of business on a
dividend  payment  record date and the close of  business  on the  corresponding
dividend  payment date shall, in lieu of receiving such dividend on the dividend
payment date fixed therefor, receive such dividend payment on the date fixed for
redemption  together  with all other  accrued and unpaid  dividends  to the date
fixed for redemption.  The holders of shares of the Series shall not be entitled
to any dividends other than the cash dividends provided for in this Paragraph 3.

         (b) No dividends,  except as described in the next succeeding sentence,
shall be declared or paid or set apart for payment on any Parity Dividend Shares
for any period unless full cumulative  dividends have been or  contemporaneously
are  declared  and paid or  declared  and set aside for  payment for all accrued
dividends  with respect to the Series  through the most recent  Dividend  Period
ending on or prior to the date of payment.  Unless dividends accrued and payable
but unpaid on shares of the Series  and any Parity  Dividend  Shares at the time
outstanding  have been paid in full, all dividends  declared by the  Corporation
upon shares of the Series or Parity  Dividend  Shares shall be declared pro rata
with respect to all such shares,  so that the amounts of any dividends  declared
on shares of the Series and the Parity  Dividend  Shares shall in all cases bear
to each other the same ratio that, at the time of the  declaration,  all accrued
but  unpaid  dividends  on shares of the Series  and the other  Parity  Dividend
Shares, respectively, bear to each other.

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         (c) If at any time the  Corporation  has failed to (x) pay or set apart
for payment all accrued  dividends on any shares of the Series  through the then
most recently  completed Dividend Period and (y) set apart for payment an amount
in cash  equal  to the  scheduled  dividend  payments  for  each of the next two
Dividend  Periods,   the  Corporation  shall  not,  and  shall  not  permit  any
corporation or other entity directly or indirectly controlled by the Corporation
to:

                  (i) declare or pay or set aside for  payment  any  dividend or
         other  distribution on or with respect to the Junior  Dividend  Shares,
         whether in cash,  securities,  obligations  or  otherwise  (other  than
         dividends  or  distributions  paid in  shares of  Capital  Stock of the
         Corporation  ranking  junior  to shares  of the  Series  both as to the
         payment of dividends and as to rights in  liquidation,  dissolution  or
         winding-up  of the  affairs of the  Corporation  ("Junior  Stock"),  or
         options,  warrants or rights to  subscribe  for or  purchase  shares of
         Junior Stock); or

                  (ii) redeem,  purchase or otherwise acquire,  or pay into, set
         apart money or make available for a sinking or other analogous fund for
         the  redemption,  purchase or other  acquisition  of, any shares of the
         Series  (unless  all  of the  shares  of the  Series  are  concurrently
         redeemed),  Parity Dividend Shares, Parity Liquidation Shares or shares
         of Junior Stock for any  consideration  (except by  conversion  into or
         exchange for Junior Stock);  provided,  however,  that this restriction
         shall not apply to the  repurchase  of  shares  of  Common  Stock  from
         employees, officers, directors, consultants or other persons performing
         services for the  Corporation or any subsidiary  pursuant to agreements
         under which the Corporation has the option to repurchase such shares at
         cost or at cost plus interest at a rate not to exceed nine percent (9%)
         per  annum  upon  the  occurrence  of  certain  events,   such  as  the
         termination of employment;  and provided further, that the total amount
         applied to the  repurchase  of shares of Common  Stock shall not exceed
         $100,000 during any 12-month  period;  and provided  further,  that the
         restriction set forth in this Paragraph 3(c)(ii) shall not apply to the
         redemption,  purchase or other  acquisition of Common Stock pursuant to
         the exercise of any offset or similar rights by the Company,

         unless,  in each such  case,  all  dividends  accrued  on shares of the
         Series through the most recently  completed  Dividend Period and on any
         Parity Dividend Shares have been or contemporaneously  are declared and
         paid in full.

         (d) Any reference to "distribution" contained in this Paragraph 3 shall
not  be  deemed  to  include  any  distribution  made  in  connection  with  any
liquidation,  dissolution or winding-up of the Corporation, whether voluntary or
involuntary.

         4. Liquidation.

         (a) The liquidation value per share of shares of the Series, in case of
the  voluntary or  involuntary  liquidation,  dissolution  or  winding-up of the
affairs of the  Corporation,  shall be $1.50 per share,  plus an amount equal to
the cash value of dividends accrued and unpaid thereon, whether or not declared,
to the payment date.

         (b)  In  the  event  of  any  voluntary  or  involuntary   liquidation,
dissolution  or  winding-up  of the  Corporation,  the  holders of shares of the
Series (i) shall not be entitled to receive the liquidation  value of the shares

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held by them until the liquidation value of all Senior  Liquidation Shares shall
have been paid in full and (ii) shall be  entitled  to receive  the  liquidation
value of such shares  held by them in  preference  to and in  priority  over any
distributions  upon the Junior Liquidation  Shares.  Upon payment in full of the
liquidation value to which the holders of shares of the Series are entitled, the
holders  of  shares  of  the  Series   will  not  be  entitled  to  any  further
participation in any distribution of assets by the Corporation. If the assets of
the Corporation are not sufficient to pay in full the liquidation  value payable
to the holders of shares of the Series and the liquidation  value payable to the
holders of any Parity  Liquidation  Shares, the holders of all such shares shall
share ratably in such distribution of assets in accordance with the amounts that
would be  payable on the  distribution  if the  amounts to which the  holders of
shares of the Series and the holders of Parity  Liquidation  Shares are entitled
were paid in full.

         (c) For  purposes  of this  Paragraph  4,  (i) any  acquisition  of the
Corporation  by means of merger or other  form of  corporate  reorganization  in
which  outstanding  Capital Stock of the Corporation is exchanged for securities
or other  consideration  issued, or caused to be issued, by the acquiring entity
or its subsidiary,  or (ii) a sale of all or substantially  all of the assets of
the  Corporation,  shall be not be  treated  as a  liquidation,  dissolution  or
winding-up of the Corporation.

         (d) Written notice of any liquidation, dissolution or winding-up of the
Corporation,  stating  the  payment  date or dates  when and the place or places
where the amounts distributable in such circumstances shall be payable, shall be
given by first class mail,  postage prepaid,  not less than 30 days prior to any
payment date stated therein, to the holders of record of shares of the Series at
their respective addresses as the same shall appear on the stock register of the
Corporation.

         (e) Whenever the distribution provided for in this Paragraph 4 shall be
payable in securities or property other than cash,  such  securities or property
shall be valued for such purpose at the fair market value of such  securities or
other property as determined in good faith by the Board of Directors.

         5. Optional Redemption.

         (a)  Shares  of the  Series  will be  redeemable  at the  option of the
Corporation,  in whole or in part, at any time prior to the conversion  thereof.
The  redemption  price  will be  payable  in cash and equal to $1.50 per  share,
together with the amount of dividends accrued and unpaid thereon, whether or not
declared, to the redemption date. The aggregate payment to each holder of shares
of the Series to be  redeemed  will be rounded up or down to the  nearest  cent.
Notwithstanding  the foregoing,  if the date fixed for redemption occurs after a
record date for a dividend and prior to the  corresponding  payment  date,  such
dividend  shall be paid on the payment date and the amount  payable with respect
to each  share of the  Series  redeemed  shall  not  include  the  amount of the
dividend to be so paid.

         (b) Not less than 30 nor more than 60 days  prior to the date fixed for
any redemption of shares of the Series pursuant to this Paragraph 5, a notice of
redemption shall be mailed by first class mail, postage prepaid,  to each holder
of shares of the  Series to be  redeemed  at such  holder's  last  address as it
appears on the stock register of the Corporation or on the books of the transfer
agent for the Series.  Such  notice  shall  state (i) that the  Corporation  has

                                       5
<PAGE>

elected to redeem all or a portion of the shares of the Series,  as specified in
such notice,  (ii) the redemption  price,  (iii) the redemption date, (iv) that,
unless the  Corporation  defaults in the payment of the  redemption  price,  all
shares of the Series called for redemption shall cease to accrue dividends after
the redemption  date and shall cease to be outstanding  after such date, and (v)
any other information  required by applicable law to be included therein and any
other  procedures  that a holder of shares of the Series  must follow to receive
payment for its redeemed  shares.  Neither failure to mail such notice,  nor any
defect therein or in the mailing thereof,  to any particular holder shall affect
the  sufficiency of the notice or the validity of the proceedings for redemption
with  respect  to any other  holder.  Any  notice  mailed in the  manner  herein
provided shall be  conclusively  presumed to have been duly given whether or not
the holder receives the notice.  On or after the redemption date, each holder of
shares of the Series to be redeemed  shall present and  surrender  such holder's
certificate  or  certificates  for such shares to the  Corporation  at the place
designated in the redemption  notice and thereupon the  redemption  price of the
shares  shall be  promptly  paid to or on the  order of the  person  whose  name
appears on such  certificate  or  certificates  as the owner  thereof,  and each
surrendered  certificate  shall be  canceled.  In case less than all the  shares
represented by any such  certificate are redeemed,  a new  certificate  shall be
issued to the holder representing the unredeemed shares of the Series.

         (c) If a notice of redemption has been given pursuant to this Paragraph
5 and if, on or before the date fixed for  redemption,  the funds  necessary for
such redemption shall have been set aside by the Corporation, separate and apart
from its other  funds,  in trust for the pro rata  benefit of the holders of the
shares of the Series so called for redemption,  then,  notwithstanding  that any
certificates for such shares have not been surrendered for cancellation,  on the
redemption  date dividends  shall cease to accrue on the shares of the Series to
be redeemed,  and at the close of business on the redemption date the holders of
such shares shall cease to be shareholders  with respect to those shares,  shall
have no interest  in or claims  against the  Corporation  by virtue  thereof and
shall have no voting or other rights with respect  thereto,  except the right to
receive the moneys payable upon such redemption,  without interest thereon, upon
surrender  (and   endorsement,   if  required  by  the   Corporation)  of  their
certificates,  and the shares evidenced  thereby shall no longer be outstanding.
Subject to applicable  escheat laws, any moneys so set aside by the  Corporation
and unclaimed at the end of two years from the  redemption  date shall revert to
the Corporation,  after which reversion the holders of such shares so called for
redemption  shall look only to the Corporation for the payment of the redemption
price.  Any  interest  accrued  on  funds  so  deposited  shall  be  paid to the
Corporation from time to time.

         (d) If a notice of redemption has been given pursuant to this Paragraph
5, and any holder of shares of the Series shall,  prior to the close of business
on the date  fixed  for  redemption,  give  written  notice  to the  Corporation
pursuant to Paragraph  6(a) below of the  conversion of any or all of the shares
to be  redeemed  held by the  holder,  then such  redemption  shall  not  become
effective as to such shares to be  converted  and such  conversion  shall become
effective as provided in Paragraph 6 below, whereupon any funds deposited by the
Corporation,  or on its behalf,  with a payment agent or segregated  and held in
trust by the Corporation for the redemption of such shares shall (subject to any
right of the holder of such shares to receive the  dividend  payable  thereon as
provided in paragraph 6 below)  immediately  upon such conversion be returned to
the  Corporation  or,  if then  held  in  trust  by the  Corporation,  shall  be
discharged from the trust.

                                       6
<PAGE>

         (e) In every  case of  redemption  of less than all of the  outstanding
shares of the Series  pursuant  to this  Paragraph  5, the shares to be redeemed
shall be  selected  pro rata or by lot or in such  other  manner as the Board of
Directors  may  determine,  as may be  prescribed  by resolution of the Board of
Directors of the Corporation,  provided that only whole shares shall be selected
for redemption.  Notwithstanding the foregoing, the Corporation shall not redeem
any of the  shares of the  Series at any time  outstanding  until all  dividends
accrued and in arrears upon all shares of the Series then outstanding shall have
been paid for all past Dividend Periods.

         6. Conversion.

         (a) Right to Convert.  Each share of the Series is convertible,  at the
option  of  the  holder   thereof   and  without   payment  of  any   additional
consideration,  at any time  after  the date of  issuance  of such  share at the
office of the Corporation or any transfer agent for such stock, into such number
of fully  paid and  nonassessable  shares of Common  Stock as is  determined  by
dividing the original issue price per share for the Series,  $1.50 (the Original
Issue Price"), together with the amount of dividends accrued and unpaid thereon,
whether  or not  declared,  to the  date  the  certificate  for  such  share  is
surrendered for conversion,  by the conversion  price  applicable to such share,
determined as hereafter provided,  in effect on the date of such conversion (the
"Conversion  Price").  The initial  Conversion  Price per share of the Series is
$1.50.  The  Conversion  Price will be subject  to  adjustments  as set forth in
Paragraph 6(e).

         (b) Automatic  Conversion on Second  Anniversary of Purchase Date. Each
outstanding  share of the Series shall  automatically and without further action
on the part of the  Corporation  or any  holder of such  share of the  Series be
converted on the second anniversary of the Purchase Date (the "Conversion Date")
into such number of fully paid and  nonassessable  shares of Common  Stock as is
determined  by dividing the Original  Issue Price,  together  with the amount of
dividends accrued and unpaid thereon, whether or not declared, to the Conversion
Date, by the Conversion Price in effect on the date of such conversion.

         (c)  Automatic  Conversion  Immediately  Prior to  Underwritten  Public
Offering.  Each outstanding  share of the Series will  automatically and without
further action on the part of the Corporation or any holder of such share of the
Series be converted into such number of fully paid and  nonassessable  shares of
Common Stock as is  determined  by dividing the Original  Issue Price,  together
with the  amount  of  dividends  accrued  and  unpaid  thereon,  whether  or not
declared, to the date of such conversion, by the Conversion Price at the time in
effect for such shares of the Series  immediately upon the Corporation's sale of
its Common Stock in a firm commitment  underwritten  public offering pursuant to
an effective registration statement under the Securities Act of 1933, as amended
(the "Act") (other than a registration  statement relating either to the sale of
securities to employees of the Corporation  pursuant to its stock option,  stock
purchase or similar plan or a  transaction  pursuant to Rule 145 under the Act),
the public offering price of which is not less than $1.50 per share (as adjusted
for   any   stock   splits,   subdivisions,   stock   dividends,   combinations,
recapitalizations and the like (collectively, "Recapitalizations")) and in which
the  aggregate  net  proceeds   (after,   without   limitation,   deductions  of
underwriters'  commissions and offering  expenses) to the  Corporation  equal or
exceed $1,000,000.

         (d) Mechanics of Conversion.  Before any holder of shares of the Series
will be entitled to receive a certificate or  certificates  for shares of Common
Stock upon  conversion of the shares of the Series pursuant to this Paragraph 6,
he, she or it must surrender the certificate or certificates for his, her or its

                                       7
<PAGE>

shares of the Series, duly endorsed, at the office of the Corporation (currently
in Dallas,  Texas) or at the office of any transfer  agent for the shares of the
Series and provide written notice to the Corporation at its principal  corporate
office  stating  therein:  (i) in the case of  conversion  pursuant to Paragraph
6(a),  that the holder has elected to convert the same,  and (ii) in the case of
conversion  pursuant to Paragraph  6(a),  (b) or (c), the name or names in which
the certificate or certificates for shares of Common Stock are to be issued. The
Corporation will, as soon as practicable  thereafter,  issue and deliver at such
office to such holder of shares of the Series,  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 is entitled as  aforesaid.  Such  conversion  will be
deemed to have been made  immediately  prior to the close of business on (x) the
date  the  certificate  or  certificates  for such  shares  is  surrendered  for
conversion,  in the case of  conversion  pursuant  to  Paragraph  6(a);  (y) the
Conversion Date, in the case of conversion  pursuant to Paragraph 6(b); or (iii)
the effective date of the underwritten offering of the Corporation's  securities
registered  pursuant to the Act, in the case of conversion pursuant to Paragraph
6(c),  and the person or persons  entitled to receive the shares of Common Stock
issuable  upon such  conversion  will be treated for all  purposes as the record
holder  or  holders  of such  shares  of Common  Stock as of such  date.  If the
conversion  is  in  connection  with  an  underwritten  offering  of  securities
registered  pursuant to the Act, the conversion may, at the option of any holder
tendering  shares of the Series for conversion,  be conditioned upon the closing
with the  underwriters of the sale of securities  pursuant to such offering,  in
which event the persons  entitled to receive the Common Stock upon conversion of
shares of the Series  will not be deemed to have  converted  such  shares  until
immediately prior to the closing of such sale of securities.

         (e) Conversion Price Adjustments. The Conversion Price of the shares of
the Series will be subject to adjustment from time to time as follows:

                  (i) In the  event the  Corporation  should at any time or from
         time  to time  after  the  Purchase  Date  fix a  record  date  for the
         effectuation  of a split or  subdivision of the  outstanding  shares of
         Common Stock or the  determination  of holders of Common Stock entitled
         to  receive a dividend  or other  distribution  payable  in  additional
         shares of Common Stock or other securities or rights  convertible into,
         exchangeable  for, or entitling the holder thereof to receive  directly
         or  indirectly,  additional  shares of Common Stock (the "Common  Stock
         Equivalents")  without payment of any  consideration by such holder for
         the additional  shares of Common Stock or the Common Stock  Equivalents
         (including  the  additional   shares  of  Common  Stock  issuable  upon
         conversion or exercise  thereof),  then, as of such record date (or the
         date of such dividend  distribution,  split or subdivision if no record
         date is fixed),  the Conversion  Price of the shares of the Series will
         be appropriately decreased so that the number of shares of Common Stock
         issuable on conversion of each share of the Series will be increased in
         proportion to such increase in the aggregate number of shares of Common
         Stock  outstanding and those issuable with respect to such Common Stock
         Equivalents,  provided,  however, that if such record date is fixed and
         such dividend is not paid or if such  distribution is not fully made on
         the date fixed  therefor,  the  Conversion  Price  will be  re-computed
         accordingly  as of the  close  of  business  on such  record  date  and
         thereafter  the  Conversion  Price will be  adjusted  pursuant  to this
         Paragraph  6  to  reflect  the  actual  payment  of  such  dividend  or
         distribution.

                                       8
<PAGE>

                  (ii) If the number of shares of Common  Stock  outstanding  at
         any time after the Purchase Date is decreased by a  combination  of the
         outstanding shares of Common Stock, then,  following the record date of
         such combination, the Conversion Price of the shares of the Series will
         be appropriately increased so that the number of shares of Common Stock
         issuable on conversion of each share of the Series will be decreased in
         proportion to such decrease in outstanding shares.

         (f)  Other  Distributions.  In the  event the  Corporation  declares  a
distribution  payable in securities of other persons,  evidences of indebtedness
issued by the Corporation or other persons, assets (excluding cash dividends) or
options or rights not referred to in Paragraph 6(e)(ii), then, in each such case
for the purpose of this Paragraph  6(f), the holders of the shares of the Series
will be entitled to a  proportionate  share of any such  distribution  as though
they were the holders of the number of shares of Common Stock of the Corporation
into which  their  shares of the Series are  convertible  as of the record  date
fixed for the  determination  of the holders of Common Stock of the  Corporation
entitled to receive such distribution.

         (g)  Reclassifications.  If at any  time  or  from  time  to  time  the
Corporation's  Common  Stock is changed  into the same or a different  number of
shares of any class or classes of stock whether by Recapitalization or otherwise
(other  than a  Recapitalization,  reclassification,  exchange,  reorganization,
substitution  or  merger  or  sale  of  assets  otherwise  provided  for in this
Paragraph  6),  provisions  will be made so that the  holders  of  shares of the
Series  thereafter  entitled to receive upon  conversion of such shares the kind
and number of shares of stock or other securities or property of the Corporation
or  otherwise,  to which a holder  of the  number  of  shares  of  Common  Stock
deliverable  upon  conversion  of the shares of the Series  held by such  holder
would have been entitled on such reclassification. In any such case, appropriate
adjustment will be made in the application of the provisions of this Paragraph 6
with  respect  to the rights of the  holders  of shares of the Series  after the
capital  reorganization  such that the provisions of this Paragraph 6 (including
adjustment  of the  Conversion  Price  then in effect  and the  number of shares
purchasable  upon  conversion of shares of the Series) will be applicable  after
that event as nearly equivalent as may be practicable.

         (h) No Impairment.  The  Corporation  will not, by this  Certificate of
Designation or through any reorganization, Recapitalization, transfer of assets,
consolidation,  merger,  dissolution,  issue or sale of  securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed hereunder by the Corporation,  but will at
all times in good faith assist in the carrying out of all the provisions of this
Paragraph  6 and in the  taking  of  all  such  action  as may be  necessary  or
appropriate in order to protect the  conversion  rights of the holders of shares
of the Series against impairment.

         (i) No Fractional Shares and Certificate as to Adjustments.

                  (i) No fractional shares will be issued upon the conversion of
         any share or shares of the  Series,  and the number of shares of Common
         Stock to be issued  will be rounded to the  nearest  whole  share.  The
         number of shares of Common Stock to be issued upon such conversion will
         be  determined on the basis of the total number of shares of the Series
         the holder is at the time  converting  into Common Stock and the number
         of shares of Common Stock issuable upon such aggregate conversion.

                                       9
<PAGE>

                  (ii) Upon the occurrence of each adjustment or readjustment of
         the  Conversion  Price of any  shares of the  Series  pursuant  to this
         Paragraph 6, the  Corporation,  at its expense,  will promptly  compute
         such adjustment or readjustment in accordance with the terms hereof and
         prepare and furnish to each holder of such shares a certificate setting
         forth such adjustment or  readjustment  and showing in detail the facts
         upon which such adjustment or  readjustment  is based.  The Corporation
         will,  upon the written request at any reasonable time of any holder of
         shares of the Series, furnish or cause to be furnished to such holder a
         like  certificate  setting forth (A) such adjustment and  readjustment,
         (B) the  Conversion  Price for such shares of the Series at the time in
         effect, and (C) the number of shares of Common Stock and the amount, if
         any,  of other  property  that at the time would be  received  upon the
         conversion of a share of the Series.

         (j)  Notices  of  Record  Date.  In  the  event  of any  taking  by the
Corporation  of a record  of the  holders  of any  class of  securities  for the
purpose of  determining  the  holders  thereof  who are  entitled to receive any
dividend  (other  than a cash  dividend)  or other  distribution,  any  right to
subscribe for, purchase or otherwise acquire any shares of stock of any class or
any other securities or property, or to receive any other right, the Corporation
will mail to each holder of shares of the Series,  at least 10 days prior to the
date specified therein, a notice specifying the date on which any such record is
to be taken for the purpose of such  dividend,  distribution  or right,  and the
amount and character of such dividend, distribution or right.

         (k) Reservation of Stock Issuable Upon Conversion. The Corporation will
at all times  reserve and keep  available  out of its  authorized  but  unissued
shares of Common Stock,  solely for the purpose of effecting  the  conversion of
the shares of the Series, such number of its shares of Common Stock as will from
time to time be sufficient to effect the conversion of all outstanding shares of
the Series,  and if at any time the number of authorized but unissued  shares of
Common Stock are not sufficient to effect the conversion of all then outstanding
shares of the Series, in addition to such other remedies as are available to the
holder of such shares of the Series,  the  Corporation  will take such corporate
action as it deems  necessary to increase its authorized but unissued  shares of
Common Stock to such number of shares as will be sufficient  for such  purposes,
including,  without  limitation,  using its best efforts to obtain the requisite
shareholder approval of any necessary amendment to the Corporation's Articles of
Incorporation.

         (l) Notices.  Any notice required by the provisions of this Paragraph 6
to be given to the  holders  of shares  of the  Series  will be deemed  given if
deposited in the United  States mail,  postage  prepaid,  and (i) upon  personal
delivery  to the party to be  notified,  (ii) when  sent by  confirmed  telex or
facsimile if sent during normal business hours of the recipient; if not, then on
the next business  day,  (iii) five days after having been sent by registered or
certified mail, return receipt requested, postage prepaid, or (iv) one day after
deposit with a nationally  recognized  overnight  courier,  specifying  next day
delivery,  with written  verification of receipt. All notices shall be addressed
to  each  holder  of  record  at  his,  her  or  its  address  appearing  on the
Corporation's books.

         7.  Status of Shares.  All  shares of the  Series  that are at any time
redeemed or converted  pursuant to Paragraph 5 or 6 above, and all shares of the
Series  that  are  otherwise  reacquired  by the  Corporation  and  subsequently

                                       10
<PAGE>

canceled  by the Board of  Directors,  shall have the status of  authorized  but
unissued shares of preferred stock, without designation as to series, subject to
reissuance by the Board of Directors as shares of any one or more other series.

         8. Voting Rights. Each holder of shares of the Series shall be entitled
to the number of votes equal to the number of shares of Common  Stock into which
such shares of the Series could then be converted  and shall have voting  rights
and powers equal to the voting  rights and powers of the Common Stock (except as
otherwise expressly provided herein or as required by law), voting together with
the  Common  Stock as a single  class  and  shall be  entitled  to notice of any
shareholders'  meeting  in  accordance  with  the  Bylaws  of  the  Corporation.
Fractional  votes shall not,  however,  be permitted and any  fractional  voting
rights resulting from the above formula (after aggregating all shares into which
shares of the Series held by each holder could be converted) shall be rounded to
the nearest whole number (with one-half being rounded upward).

         9.  Restrictions and  Limitations.  So long as any shares of the Series
remain  outstanding,  the  Corporation,  shall not,  without the vote or written
consent  by the  holders  of a majority  of the then  outstanding  shares of the
Series, voting together as a single class:

         (a) Redeem, purchase or otherwise acquire for value (or pay into or set
aside  for a sinking  fund for such  purpose)  any share or shares of  preferred
stock,  other than Senior  Liquidation  Shares,  otherwise than by redemption in
accordance with Paragraph 5 hereof or by conversion in accordance with Paragraph
6 hereof; or

         (b) Redeem, purchase or otherwise acquire (or pay into or set aside for
a sinking fund for such purpose),  any of the Common Stock;  provided,  however,
that this  restriction  shall not  apply to the  repurchase  of shares of Common
Stock  from  employees,  officers,  directors,   consultants  or  other  persons
performing services for the Corporation or any subsidiary pursuant to agreements
under which the  Corporation has the option to repurchase such shares at cost or
at cost plus  interest at a rate not to exceed nine  percent (9%) per annum upon
the occurrence of certain  events,  such as the  termination of employment;  and
provided  further,  that the total amount applied to the repurchase of shares of
Common Stock shall not exceed $100,000 during any 12-month period;  and provided
further,  that the  restriction set forth in this Paragraph 9(b) shall not apply
to the redemption, purchase or other acquisition of Common Stock pursuant to the
exercise of any offset or similar rights by the Company.

         10. Certain Definitions. As used in this Certificate, the term "Capital
Stock" of any person or entity  means any and all shares,  interests,  rights to
purchase, warrants, options, participations or other equivalents of or interests
in the common  stock or  preferred  stock of such  person or entity,  including,
without limitation, partnership and membership interests.

                                       11
<PAGE>

         IN WITNESS  WHEREOF,  the Corporation has caused this Certificate to be
duly  executed  on its behalf by its  undersigned  Chief  Executive  Officer and
attested to by its Assistant Secretary this 10th day of November, 2004.

                                            /s/ Matthew H. Fleeger
                                           -------------------------------------
                                           Matthew H. Fleeger
                                           President and Chief Executive Officer

ATTEST:

 /s/ Beverly Fleeger
--------------------
Beverly Fleeger
Secretary

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