Document:

EMPLOYMENT AGREEMENT

This Employment  Agreement (the "Agreement") is entered into as of June 14, 2005
between  CYBERTEL  CAPITAL  CORP., a Nevada  corporation  (the  "Company"),  and
RICHARD F. SCHMIDT (the "Executive").

                                    RECITALS

WHEREAS, The Company is engaged in the business of developing and marketing long
distance  voice and data  telecommunications  services and related  products and
services.  The Company is intending to acquire a management  company for medical
offices (the "Company's Business"); and

WHEREAS,  Executive possesses  substantial knowledge and experience with respect
to the Company's Business; and

WHEREAS, the Company desires to employ the Executive to have the benefits of his
expertise and knowledge.  The Executive,  in turn,  desires  employment with the
Company.  The parties,  therefore,  enter into this  Agreement to establish  the
terms and conditions of the Executive's employment with the Company.

In consideration of the mutual covenants and  representations  contained in this
Agreement, the Company and the Executive agree as follows:

1. Employment of Executive;  Duties.  The Company agrees to employ the Executive
and the  Executive  agrees to be  employed  by the  Company  as Chief  Financial
Officer for the period specified in Section 3 (the "Employment Period"), subject
to the terms and conditions of this Agreement. During the Employment Period, the
Executive shall have such duties and responsibilities  generally consistent with
his position and such other duties not inconsistent  with his title and position
and as may be  assigned  to him by the  Company,  which  may  include  providing
similar services for any of the Company's  subsidiaries,  parents or affiliates.
In connection  therewith,  Executive shall devote his best efforts,  experience,
and  judgment  to fully  discharge  his duties and  responsibilities  under this
Employment  Agreement and as reasonably  contemplated  hereby,  and shall act in
conformity  with the  written  and oral  policies  of the Company and within the
limits,  budgets,  business  plans,  and  instructions  as set by its  Board  of
Directors  (the  "Board").  Executive  shall be subject to the  authority of the
Board and the Company's duly appointed President and Chief Executive Officer.

2. Place of Employment  and Travel.  Executive  acknowledges  that the Company's
offices and  headquarters  are  currently  located in Northern  California.  The
Company will maintain a satellite office in San Diego,  California that shall be
the site of Executive's employment.

3.  Employment  Period.  The  Employment  Period  shall  begin on the date first
written above (the "Effective  Date") and shall continue for two (2) years. Upon
the expiration of one (1) year from the Effective Date and upon each anniversary
thereafter,  the Employment  Period shall be extended an additional year without
further  action by either party,  unless the Company gives written notice to the
Executive  within  thirty  (30)  days  of the  anniversary  and as  provided  in
Paragraph 9 herein,  in which case the  Employment  Period  shall expire one (1)
years from the next anniversary of the Effective Date.

                                       1
<PAGE>

4. Base Salary.  The Company  shall pay to the  Executive a minimum  annual base
salary of One Hundred Thousand U.S. Dollars (US$100,000.00) (the "base salary").
The base salary shall be payable in equal  periodic  installments  which are not
less  frequent  than the periodic  installments  in effect for salaries of other
executives of the Company.  The base salary shall be subject to review  annually
by the Board (or a  committee  appointed  by the Board)  for upward  adjustments
based on the policies of the Company and the  Executive's  contributions  to the
business of the Company.  The base salary shall not be adjusted downward without
the written consent of the Executive.

      1.    Commencing  after the Company closes on the acquisition of Strategic
            Healthcare Systems, Inc., a Nevada corporation, for each ten percent
            (10%)  rise  in  share   price  of  the   Company's   common   stock
            (proportionately adjusted for stock splits, stock dividends, reverse
            stock splits, and the like),  calculated quarterly,  executive shall
            receive a $10,000 raise in annual compensation.

      2.    Executive  shall  receive an annual  bonus of five  percent  (5%) of
            increased  annual net revenues  attributable  to acquisition or roll
            ups of additional facilities.

5.  Benefits.  In  addition  to and  except  for the  matters  governed  by this
Agreement,  the  Executive  shall be entitled  to the  following:  (i)  employee
benefits and perquisites,  including but not limited to pension plans,  deferred
compensation  plans,  stock  options,  annual bonus plans,  long term  incentive
plans,  group life insurance,  disability,  sickness and accident  insurance and
health benefits under such plans and programs as provided to other executives of
the Company from time to time; (ii) paid vacation as well as holidays,  leave of
absence and leave for illness and temporary  disability  in accordance  with the
policies of the  Company;  and (iii) the  specific  benefits as are set forth in
Exhibit 2 attached hereto and incorporated in full by this reference.

6.  Non-Disclosure.  As a condition  to the  employment  arrangement,  Executive
agrees to execute  and comply  with the terms and  conditions  of the  "Employee
Non-Disclosure Agreement" attached hereto as Exhibit 1.

7. Termination.

7.1 Termination by the Company.

(a)  The  Company  may not  terminate  the  Executive's  employment  under  this
Agreement without Cause.

(b)  The  Company,  by  action  of its  Board,  may  terminate  the  Executive's
employment under this Agreement for Cause at any time by notifying the Executive
of such termination.  For all purposes of this Agreement,  the Employment Period
shall end as of the date of such  termination of  employment.  "Cause" means the
Executive's:  (i) persistent and repeated refusal, failure or neglect to perform
the material duties of his employment under this Agreement (other than by reason
of the Executive's physical or mental illness or impairment), provided that such
Cause  shall be deemed to occur  only  after the  Company  gave  written  notice
thereof  to  the  Executive   specifying   in  reasonable   detail  the  conduct

                                       2
<PAGE>

constituting  Cause, the Executive failed to cure and correct his conduct within
thirty  (30) days  after  receipt  of such  notice,  and the  Executive  had the
opportunity  to be heard at a meeting of the Board;  (ii)  committing any act of
fraud or  embezzlement,  provided  that such Cause shall be deemed to occur only
after the Company gave notice thereof to the Executive  specifying in reasonable
detail the instances of such conduct,  and the Executive had the  opportunity to
be heard at a meeting of the Board; (iii) breach of the Employee Non-Disclosure,
Non-Competition  and  Assignment  of  Inventions  Agreement  or  of  such  other
subsequent  agreements entered into during the Employment Period that results in
a detriment  to the Company,  provided  the Company  gave notice  thereof to the
Executive  specifying in  reasonable  detail each such alleged  breach,  and the
Executive  had the  opportunity  to be heard at a  meeting  of the  Board;  (iv)
conviction of a felony (including  pleading guilty to a felony); or (v) habitual
abuse of alcohol or drugs.

7.2 Termination by the Executive.  The Executive may terminate this Agreement at
any time,  for any reason or for no reason at all, by giving  notice  thereof to
the  Company  at  least  sixty  (60)  days  before  the  effective  date of such
termination.  The  Employment  Period  shall  terminate  as of the  date of such
termination of employment.

7.3 Severance Benefits.

      (a) If the  Executive's  employment  under this Agreement is terminated by
      the  Executive  before the end of the  Employment  Period and without Good
      Reason (as defined in herein below),  the Company shall continue to pay to
      the Executive his unpaid Base Salary through the time of  termination  and
      for a period  extending  ninety (90) days  thereafter.  Additionally,  the
      Executive  shall be entitled to his share of the accrued stock and accrued
      stock options  through the date of termination  which shall be paid to him
      at such time as the next payment is made to the other  participants of all
      applicable stock or stock option plan or long term incentive plan.

      (b) If the  Executive's  employment  under this Agreement is terminated by
      the  Company  for  Cause,  or if the  Executive  dies or  becomes  totally
      disabled  (as  defined  herein  below),  the  Company  shall  only pay the
      Executive a lump sum cash payment  within  thirty (30) days of the date of
      such termination,  equal to the sum of: (i) Executive's unpaid Base Salary
      earned to the  termination  date;  (ii) his share of the accrued stock and
      accrued stock options through the date of termination  which shall be paid
      to him or his estate at such time as the next payment is made to the other
      participants  of all  applicable  stock or stock option plans or long term
      incentive plans.

      (c) If the  Executive's  employment  under this Agreement is terminated by
      the Executive for Good Reason or by the Company without Cause, the Company
      shall  continue  to pay to the  Executive  his unpaid  base salary for the
      entire  time  remaining  in  the  Employment  Period.  Additionally,   the
      Executive  shall be entitled  to all stock and stock  options set forth in
      Exhibit 2,  including  but not limited to his share of all accrued  stock,
      accrued stock options,  and all other stock and stock options  through the
      date of the  termination of the  Employment  Period which shall be paid to
      him at such time as such  payments are made to the other  participants  of
      all applicable stock option plans or long term incentive plans.

                                       3
<PAGE>

      (d) "Good  Reason"  means:  any material  failure by the Company to pay or
      provide the compensation and benefits under this Agreement; provided that,
      in each such event,  the Executive  shall give the Company  notice thereof
      which shall specify in reasonable  detail the  circumstances  constituting
      Good  Reason,  and there shall be no Good Reason with  respect to any such
      circumstances  cured by the  Company  within  thirty  (30) days after such
      notice.

      (e) If the  Executive  is  terminated  by the  Company  for  Cause and the
      Executive  is entitled to receive  payments or other  benefits  under this
      Agreement upon the  termination of his  employment  with the Company,  the
      Executive hereby  irrevocably  waives the right to receive any payments or
      other benefits under any other severance or similar plan maintained by the
      Company ("Other Severance Plan").

7.4  Termination  by  Death  or  Disability.   This  Agreement  shall  terminate
automatically  upon the  Executive's  death.  If the Company  determines in good
faith that the  Executive has a "total  disability"  (within the meaning of such
term or of a similar term as defined in the Company's long-term  disability plan
as in effect from time to time),  the Company may terminate his employment under
this  Agreement by  notifying  the  Executive  thereof at least thirty (30) days
before the effective date of such termination.

8. Representation by Executive. Executive represents and warrants to the Company
that his employment hereunder will not conflict with or result in a violation or
breach  of,  or  constitute  a  default   under  any   contract,   agreement  or
understanding to which he is or was a party.

9. Notices. Any notices, requests, demands and other communications provided for
by this Agreement shall be sufficient if in writing and if sent by registered or
certified mail to the Executive at the last address he has filed in writing with
the Company or, in the case of the Company, to the Company's principal executive
offices.

10.  Withholding  Taxes.  The Company shall have the right, but not the duty, to
the extent permitted by law, to withhold from any payment of any kind due to the
Executive under this Agreement to satisfy the tax withholding obligations of the
Company under applicable law.

11.  Validity;  Complete  Agreement.  The  validity  and  enforceability  of any
provision  hereof shall in no way affect the validity or  enforceability  of any
other provision hereof.  This Agreement sets forth the entire  understanding and
embodies the entire  Agreement of the parties with respect to the subject matter
covered  hereby  and  supersedes  all prior or  contemporaneous  oral or written
agreements, understandings,  arrangements, negotiations or communications, among
the parties hereto.

12. Amendment. This Agreement shall not be modified or amended except by written
agreement of the parties hereto.

13. Choice of Law;  Jurisdiction and Venue.  This Agreement shall be governed by
and construed in accordance with the law of the State of California. The Parties
consent to the exclusive  jurisdiction of the California  courts.  Venue for any
action brought hereunder shall be exclusively in the State of California, County
of San Diego.

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<PAGE>

14.  Counterpart.  This Agreement may be executed in any number of counterparts,
all of which shall be considered one and the same agreement.

15. Delay; Partial Exercise.  No failure or delay by any party in exercising any
right,  power or  privilege  under  this  Agreement  shall  operate  as a waiver
thereof;  nor shall any  single  or  partial  exercise  of any  right,  power or
privilege  hereunder  preclude  any other or  further  exercise  thereof  or the
exercise of any other right, power or privilege.

16. Successors and Assigns.  This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.  The Company shall have
the  right to  assign  this  Agreement  to any of its  respective  subsidiaries,
parents or  affiliates.  The  rights and  obligations  of  Executive  under this
Agreement are personal to him and no such right or  obligation  shall be subject
to voluntary or involuntary alienation, assignment, or transfer.

17. Mandatory Arbitration.  DISPUTES REGARDING THE EXECUTIVE'S EMPLOYMENT BY THE
COMPANY,  INCLUDING,  WITHOUT LIMITATION, ANY DISPUTE UNDER THIS AGREEMENT WHICH
CANNOT BE RESOLVED BY  NEGOTIATIONS  BETWEEN THE COMPANY AND THE EXECUTIVE SHALL
BE  SUBMITTED  TO, AND  SOLELY  DETERMINED  BY,  FINAL AND  BINDING  ARBITRATION
CONDUCTED  UNDER THE RULES OF ARBITRATION OF THE STATE OF CALIFORNIA  APPLICABLE
TO EMPLOYMENT DISPUTES,  AND THE PARTIES AGREE TO BE BOUND BY THE FINAL AWARD OF
THE ARBITRATOR IN ANY SUCH  PROCEEDING.  THE ARBITRATOR  SHALL APPLY THE LAWS OF
THE STATE OF CALIFORNIA WITH RESPECT TO THE INTERPRETATION OR ENFORCEMENT OF ANY
MATTER  RELATING  TO THIS  AGREEMENT.  ARBITRATION  MAY BE  HELD  IN SAN  DIEGO,
CALIFORNIA,  OR SUCH OTHER PLACE AS THE PARTIES HERETO MAY MUTUALLY  AGREE,  AND
SHALL BE  CONDUCTED  BY A QUALIFIED  ARITRATOR  APPOINTED  UNDER THE LAWS OF THE
STATE OF CALIFORNIA. JUDGMENT UPON THE AWARD BY THE ARBITRATOR MAY BE ENTERED IN
ANY COURT HAVING JURISDICTION THEREOF.

      IN WITNESS  WHEREOF,  the parties  hereto have caused this Agreement to be
executed as of the day and year first written above.

                                                Witness

/s/ Richard F. Schmidt                         /s/ Andrew E. Mercer
--------------------------------                --------------------------------
RICHARD F. SCHMIDT

CYBERTEL CAPITAL CORP.                          Witness

By /s/ Albert A. Gomez, M.D.                    /s/ Andrew E. Mercer
   --------------------------------             --------------------------------
   Albert A. Gomez, M.D.

                                       5
<PAGE>

                                    Exhibit 1

                             EMPLOYEE NON-DISCLOSURE
                                    AGREEMENT

      The  Undersigned,  RICHARD F. SCHMIDT (the  "Employee" or  "Employee")  in
consideration of his employment with CYBERTEL COMMUNICATIONS CORP. ("CYBERTEL"),
plus other good and valuable consideration, the receipt and sufficiency of which
is  hereby  acknowledged,  intending  to be  legally  bound  by  the  terms  and
conditions of this Employee Non-Disclosure Agreement (this "Agreement"),  hereby
agrees as follows:

      1. Respective Persons or Entities Covered.  Employee acknowledges that, as
an employee of CYBERTEL,  he will  possibly  also be working with  subsidiaries,
parents and affiliated  entities of CYBERTEL that shall  hereinafter be referred
to herein as the "Companies."

      1. Confidentiality. Employee covenants and agrees that he will not, at any
time either during the term of this Agreement of thereafter, for a period of one
year  after the  receipt  by  Employee  of the last  disclosure  of  proprietary
information,  reveal (or permit to be revealed where such is within its control)
to a third party or use for his own benefit,  without prior  written  consent of
the  Companies,  any  information  pertaining to the  Inventions,  or any of the
Companies'  respective  businesses  including  but not  limited  to  information
relating to research results, formulations, computer code, suppliers, employees,
customers  financial  condition,   procedures,   tests,  know-how,   production,
distribution,  work and organizational  methods,  experimental  results or trade
secrets.

      2.  Definition  of Terms.  The term  "Employee"  shall,  for  purposes  of
paragraphs  1  through  2  includes   Employee  along  with  any  of  Employee's
Affiliates,  Associates, or entities of which he is a Beneficial Owner. The term
"Affiliate"  shall means a person  controlling,  controlled  by or under  common
control with Employee and the term "control" (including the terms "controlling,"
"controlled  by," and "under common  control with") means the power to direct or
cause the  direction  of the  management  and  policies  of a person or  entity,
whether  through the ownership of voting  securities,  by contract or otherwise.
The term  "Associate,"  shall mean a relationship  with: i) any corporation,  or

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<PAGE>

organization  (other  than  the  Companies)  of  which  Employee  or  any of his
Affiliates or Associates is a director, officer or partner, ii) any corporation,
or  organization  (other  than  the  Companies)  of  which  Employee  or  any of
Employee's Affiliates or Associates,  directly or indirectly, are the beneficial
owner of five percent (5%) or more of any class of equity  securities;  iii) any
trust or other estate in which  Employee or any of his  Affiliates or Associates
have a substantial  beneficial interest or with respect to which Employee or any
of his  Affiliates  or Associates  serve as a trustee or in any other  fiduciary
capacity;  or iv) Employee's  spouse, or any blood relative of Employee,  or any
blood relative of Employee's  spouse,  who resides in the same home as Employee,
or who is an officer or  director,  or partner of any  Affiliate or Associate of
Employee. The term "beneficial ownership" shall mean interests which Employee or
his or Affiliates or Associates may possess which are  substantially  equivalent
to those of ownership and are enjoyed by reason of any contract,  understanding,
relationship,  agreement or other arrangement, whether or not such are set forth
in a legally  binding  contract or document.  The term "term of this  Agreement"
shall mean the period of time during which the Employment  Agreement executed by
Employee and CYBERTEL concurrently with this Agreement remains in force.

      3. Restriction on Enforceability of Agreement. Full compliance by CYBERTEL
and the  Companies  with  the  terms of the  Employment  Agreement  executed  by
CYBERTEL and Employee  concurrently with this Agreement is a material  condition
in Employee's decision to execute this Agreement.

IN WITNESS  WHEREOF,  the  Undersigned,  intending to be legally  bound,  hereby
executes and delivers this Agreement this 14th day of June, 2005.

/s/ Richard F. Schmidt
--------------------------------
RICHARD F. SCHMIDT

Witness

/s/ Andrew E. Mercer
--------------------------------

                                       7
<PAGE>

                                    Exhibit 2

      In addition to the benefits  set forth in the  Employment  Agreement,  the
Employee or his assigns shall receive the following:

      An option to purchase  shares of the Company's  common stock such that the
number of shares of common  stock  issuable  upon  exercise of the option  shall
equal seven and one-half  percent  (7.5%) of the issued and  outstanding  common
stock as of the date of exercise.  The exercise price of the option will be $500
for all shares  issuable  upon  exercise of the option.  This option fully vests
upon the execution of this  agreement  and the  termination  of the  executive's
employment  for any  reason  will  not  have an  effect  on the  ability  of the
Executive to exercise this option. This option shall terminate on June 14, 2010.

      An option to purchase  shares of the Company's  preferred  stock such that
the number of shares of preferred  stock  issuable  upon  exercise of the option
shall  equal seven and  one-half  percent  (7.5%) of the issued and  outstanding
preferred  stock as of the date of exercise.  The  exercise  price of the option
will be $500 for all shares  issuable upon  exercise of the option.  This option
fully vests upon the  execution of this  agreement  and the  termination  of the
executive's  employment for any reason will not have an effect on the ability of
the Executive to exercise this option.  This option shall  terminate on June 14,
2010.

      The following additional terms and conditions shall apply to all shares of
Common Stock subject to this Exhibit 2:

      1.    All shares  transferred  and paid to  Employee  shall be  restricted
            within the  meaning of Rule144  of the  Securities  Act of 1933,  as
            amended,  and shall bear the appropriate  legend on each certificate
            as well as a legend  describing  the  limitation on  transferability
            contained herein;

      2.    In the event the Company  approves  and  implements a stock split or
            other  revaluation  of the  shares of Common  Stock  subject to this
            Exhibit  2, the  number of  remaining  shares of Common  Stock to be
            issued to the Employee  shall be  recalculated  so that the Employee
            shall receive the number of shares  exactly  equivalent to the value
            of the shares set forth above; and,

      3.    In the event the  Company  is merged  into or  acquired  by  another
            entity,  or a  majority  interest  in the  Common  Stock  is sold or
            otherwise  transferred to another entity, or the Company  authorizes
            any other  reorganization  that in any way affects the marketability
            of the shares of Common Stock  subject to this Exhibit 2, all shares
            of  Common  Stock  remaining  to be  issued  to the  Employee  shall
            immediately  vest in the Employee,  and the Employee  shall have the
            right to sell or  otherwise  dispose  of all or any  portion of such
            shares at his sole  discretion  and free of any  restrictions  other
            than restrictions under federal or state securities laws.

                                       8Unassociated Document

    

      

      CERTIFICATE
        OF DESIGNATION

      OF
        THE RIGHTS, PREFERENCES, PRIVILEGES

      AND
        RESTRICTIONS, WHICH HAVE NOT BEEN SET

      FORTH
        IN THE CERTIFICATE OF INCORPORATION 

      OR
        IN ANY AMENDMENT THERETO, OF THE

      SERIES
        B CONVERTIBLE PREFERRED STOCK

      OF
        SPEEDEMISSIONS, INC.

      

      (Pursuant
        to Section 607.0602 of the Florida Business Corporation Act)

      

      

      The
        undersigned, Richard A. Parlontieri, does hereby certify that:

      

      1.
         He
        is the
        President and Secretary of Speedemissions, Inc., a Florida corporation (the
        “Corporation”).

      

      Series
        B2. Pursuant
        to the Unanimous Written Consent of the Board of Directors of the Corporation
        dated June 30, 2005, the Board of Directors duly adopted the following
        resolutions:

      

      WHEREAS,
        the Certificate of Incorporation of the Corporation authorizes a class of
        stock
        designated as Preferred Stock, with a par value of $0.001 per share (the
        “Preferred Class”), comprising Five Million (5,000,000) shares and provides that
        the Board of Directors of the Corporation may fix the terms, including any
        dividend rights, dividend rates, conversion rights, voting rights, rights
        and
        terms of any redemption, redemption, redemption price or prices, and liquidation
        preferences, if any, of the Preferred Class;

      

      WHEREAS,
        the Board of Directors has previously designated a class of stock as the
        Series
        A Convertible Preferred Stock, consisting of 3,500 shares, and there are
        no
        other classes or series of Preferred Stock designated;

      

      WHEREAS,
        the Board of Directors believes it in the best interests of the Corporation
        to
        create a series of preferred stock consisting of Three Million (3,000,000)
        shares and designated as the “Series B Preferred Stock” having certain rights,
        preferences, privileges, restrictions and other matters relating to the Series
        B
        Preferred Stock.

      

      NOW,
        THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby fix and
        determine the rights, preferences, privileges, restrictions and other matters
        relating to the Series B Preferred Stock as follows:

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      TERMS
        OF PREFERRED STOCK

      

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

      

      “Bankruptcy
        Event”
        means
        any of the following events: (a) the Corporation or any Significant Subsidiary
        (as such term is defined in Rule 1.02(s) of Regulation S-X) thereof commences
        a
        case or other proceeding under any bankruptcy, reorganization, arrangement,
        adjustment of debt, relief of debtors, dissolution, insolvency or liquidation
        or
        similar law of any jurisdiction relating to the Corporation or any Significant
        Subsidiary thereof; (b) there is commenced against the Corporation or any
        Significant Subsidiary thereof any such case or proceeding that is not dismissed
        within 60 days after commencement; (c) the Corporation or any Significant
        Subsidiary thereof is adjudicated insolvent or bankrupt or any order of relief
        or other order approving any such case or proceeding is entered; (d) the
        Corporation or any Significant Subsidiary thereof suffers any appointment
        of any
        custodian or the like for it or any substantial part of its property that
        is not
        discharged or stayed within 60 days; (e) the Corporation or any Significant
        Subsidiary thereof makes a general assignment for the benefit of creditors;
        (f)
        the Corporation or any Significant Subsidiary thereof calls a meeting of
        its
        creditors with a view to arranging a composition, adjustment or restructuring
        of
        its debts; or (g) the Corporation or any Significant Subsidiary thereof,
        by any
        act or failure to act, expressly indicates its consent to, approval of or
        acquiescence in any of the foregoing or takes any corporate or other action
        for
        the purpose of effecting any of the foregoing.

      

      “Closing
        Date”
        means
        the Trading Day when all of the Transaction Documents have been executed
        and
        delivered by the applicable parties thereto, and all conditions precedent
        to (i)
        the Investor’s obligations to pay the Subscription Amount and (ii) the
        Corporation’s obligations to deliver the Series B Preferred Stock and Warrants
        have been satisfied or waived, including the satisfaction of all provisions
        of
        the Escrow Agreement entered into pursuant to the terms of the Purchase
        Agreement.

       

      “Commission”
        means the Securities and Exchange Commission.

       

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

       

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

       

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

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

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

      

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

       

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

      

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

      

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

       

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

      

      “Exchange
        Act”
        means
        the Securities Exchange Act of 1934, as amended.

      

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

       

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

      

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

      

      “Junior
        Securities”
        means
        the Common Stock and all other equity or equity equivalent securities of
        the
        Corporation other than those securities that are explicitly senior in rights
        or
        liquidation preference to the Series B Preferred Stock (such as the Series
        A
        Convertible Preferred Stock).

      

      
        
          
          

        

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

      

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

      

      “Purchase
        Agreement”
        means
        the Preferred Stock Purchase Agreement, dated as of June 30, 2005, to which
        the
        Corporation and the original Holders are parties, as amended, modified or
        supplemented from time to time in accordance with its terms, a copy of which
        is
        on file at the principal offices of the Corporation.

      

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

      

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

       

      “Series
        B Preferred Stock”
        shall
        have the meaning set forth in Section 2.

       

      “Subscription
        Amount”
        shall
        mean the Six Million Four Hundred and Twenty Thousand Dollars ($6,420,000)
        to be
        paid for the Preferred Stock purchased pursuant to the Purchase Agreement,
        in
        United States Dollars and in immediately available funds.

       

        “Subsidiary”
        shall
        mean a corporation, limited liability company, partnership, joint venture
        or
        other business entity of which the Corporation owns beneficially or of record
        more than 19% of the equity interest.

        

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

       

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

       

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

      

      “VWAP”
        means,
        for any date, the price determined by the first of the following clauses
        that
        applies: (a) if the Common Stock is then listed or quoted on a Trading Market,
        the daily volume weighted average price of the Common Stock for such date
        (or
        the nearest preceding date) on the primary Trading Market on which the Common
        Stock is then listed or quoted as reported by Bloomberg Financial L.P. (based
        on
        a Trading Day from 9:30 a.m. EST to 4:02 p.m. Eastern Time) using the VAP
        function; (b) if the Common Stock is not then listed or quoted on
        the
        Trading Market and if prices for the Common Stock are then reported in the
“Pink
        Sheets” published by the National Quotation Bureau Incorporated (or a similar
        organization or agency succeeding to its functions of reporting prices),
        the
        most recent bid price per share of the Common Stock so reported; or (c) in
        all other cases, the fair market value of a share of Common Stock as determined
        by a nationally recognized-independent appraiser selected in good faith by
        Purchasers holding a majority of the principal amount of Series B Preferred
        Stock then outstanding.

       

      
        
          
          

        

        
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      Section
        2.
         Designation,
        Amount and Par Value.
        The
        series of preferred stock shall be designated as the Corporation’s Series B
        Convertible Preferred Stock (the “Series
        B Preferred Stock” or “Preferred Stock”)
        and
        the number of shares so designated shall be (which shall not be subject to
        increase without the consent of all of the holders of the Series B Preferred
        Stock (each a “Holder”
        and
        collectively, the “Holders”)).
        Each
        share of Series B Preferred Stock shall have a par value of $0.001 per share.
        Capitalized terms not otherwise defined herein shall have the meaning given
        such
        terms in Section 1 hereof.

       

      Section
        3.
        Dividends
        and Other Distributions.
        No
        dividends shall be payable with respect to the Series B Preferred Stock.
        No
        dividends shall be payable with respect to the Common Stock while the Series
        B
        Preferred Stock is outstanding. 

      

      Section
        4.
        Voting
        Rights.
        The
        Series B Preferred Stock shall have no voting rights. However, so long as
        any
        shares of Series B Preferred Stock are outstanding, the Corporation shall
        not,
        without the affirmative approval of the Holders of the shares of the Series
        B
        Preferred Stock then outstanding, (a) alter or change adversely the powers,
        preferences or rights given to the Series B Preferred Stock or alter or amend
        this Certificate of Designation, (b) authorize or create any class of stock
        ranking as to dividends or distribution of assets upon a Liquidation (as
        defined
        in Section 5) senior to or otherwise pari passu with the Series B Preferred
        Stock, or any of preferred stock possessing greater voting rights or the
        right
        to convert at a more favorable price than the Series B Preferred Stock, (c)
        amend its certificate or articles of incorporation or other charter documents
        in
        breach of any of the provisions hereof, (d) increase the authorized number
        of
        shares of Series B Preferred Stock, or (e) enter into any agreement with
        respect
        to the foregoing.

       

      Section
        5.
         Liquidation.
        Upon
        any liquidation, dissolution or winding-up of the Corporation, whether voluntary
        or involuntary (a “Liquidation”),
        the
        Holders shall be entitled to receive out of the assets of the Corporation,
        whether such assets are capital or surplus, for each share of Series B Preferred
        Stock an amount equal to $2.568 (the “Liquidation
        Value”)
        before
        any distribution or payment shall be made to the holders of any Junior
        Securities, and if the assets of the Corporation shall be insufficient to
        pay in
        full such amounts, then the entire assets to be distributed to the Holders
        shall
        be distributed among the Holders ratably in accordance with the respective
        amounts that would be payable on such shares if all amounts payable thereon
        were
        paid in full. At the election of a Holder made by written notice delivered
        to
        the Corporation prior to the effective date of the subject transaction, as
        to
        the shares of Series B Preferred Stock held by such Holder, a Fundamental
        Transaction or Change of Control Transaction shall not be treated as a
        Liquidation. 

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      Section
        6.
         Conversion.

      

      a)  Conversions
        at Option of Holder.
        Each
        share of Series B Preferred Stock shall be initially convertible (subject
        to the
        limitations set forth in Section 6(c)), into Forty Two and Eight Tenths (42.8)
        shares of Common Stock (as adjusted as provided below, the “Conversion
        Ratio”)
        at the
        option of the Holders, at any time and from time to time from and after the
        Original Issue Date. Holders shall effect conversions by providing the
        Corporation with the form of conversion notice attached hereto as Annex
        A
        (a
“Notice
        of Conversion”)
        as
        fully and originally executed by the Holder, together with the delivery by
        the
        Holder to the Corporation of the stock certificate(s) representing the number
        of
        shares of Series B Preferred Stock so converted, with such stock certificates
        being duly endorsed in full for transfer to the Corporation or with an
        applicable stock power duly executed by the Holder in the manner and form
        as
        deemed reasonable by the transfer agent of the Common Stock. Each Notice
        of
        Conversion shall specify the number of shares of Series B Preferred Stock
        to be
        converted, the number of shares of Series B Preferred Stock owned prior to
        the
        conversion at issue, the number of shares of Series B Preferred Stock owned
        subsequent to the conversion at issue, the stock certificate number and the
        shares of Series B Preferred Stock represented thereby which are accompanying
        the Notice of Conversion, and the date on which such conversion is to be
        effected, which date may not be prior to the date the Holder delivers such
        Notice of Conversion and the applicable stock certificates to the Corporation
        by
        overnight delivery service (the “Conversion
        Date”).
        If no
        Conversion Date is specified in a Notice of Conversion, the Conversion Date
        shall be the Trading Day immediately following the date that such Notice
        of
        Conversion and applicable stock certificates are received by the Corporation.
        The calculations and entries set forth in the Notice of Conversion shall
        control
        in the absence of manifest or mathematical error. Shares of Series B Preferred
        Stock converted into Common Stock in accordance with the terms hereof shall
        be
        canceled and may not be reissued. The initial value of the Series B Preferred
        Stock on the Conversion Date shall be equal to $2.568 per share (as adjusted
        pursuant to Section 7 or otherwise as provided herein, the “Conversion
        Value”).
        If
        the initial Conversion Value is adjusted pursuant to Section 7 or as otherwise
        provided herein, the Conversion Ratio shall likewise be adjusted and the
        new
        Conversion Ratio shall equal the Liquidation Value divided by the new Conversion
        Value. Thereafter, subject to any further adjustments in the Conversion Value,
        each share of Series B Preferred Stock shall be convertible into that number
        of
        shares of Common Stock equal to the new Conversion Ratio. 

       

      
        
          
          

        

        
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      b)  Beneficial
        Ownership Limitation. Except
        as
        provided in Section 6(a) above, the Corporation shall not effect any conversion
        of the Series B Preferred Stock, and the Holder shall not have the right
        to
        convert any portion of the Series B Preferred Stock to the extent that after
        giving effect to such conversion, the Holder (together with the Holder’s
        affiliates), as set forth on the applicable Notice of Conversion, would
        beneficially own in excess of 4.9% of the number of shares of the Common
        Stock
        outstanding immediately after giving effect to such conversion.  For
        purposes of the foregoing sentence, the number of shares of Common Stock
        beneficially owned by the Holder and its affiliates shall include the number
        of
        shares of Common Stock issuable upon conversion of the Series B Preferred
        Stock
        with respect to which the determination of such sentence is being made, but
        shall exclude the number of shares of Common Stock which would be issuable
        upon
        (A) conversion of the remaining, nonconverted shares of Series B Preferred
        Stock
        beneficially owned by the Holder or any of its affiliates, so long as such
        shares of Series B Preferred Stock are not convertible within sixty (60)
        days
        from the date of such determination, and (B) exercise or conversion of the
        unexercised or nonconverted portion of any other securities of the Corporation
        (including the Warrants) subject to a limitation on conversion or exercise
        analogous to the limitation contained herein beneficially owned by the Holder
        or
        any of its affiliates, so long as such other securities of the Corporation
        are
        not exercisable nor convertible within sixty (60) days from the date of such
        determination.  For purposes of this Section 6(c), beneficial ownership
        shall be calculated in accordance with Section 13(d) of the Exchange Act.
        For
        purposes of this Section 6(c), in determining the number of outstanding shares
        of Common Stock, the Holder may rely on the number of outstanding shares
        of
        Common Stock as reflected in the most recent of the following: (A) the
        Corporation’s most recent quarterly reports, Form 10-Q, Form 10-QSB, Annual
        Reports, Form 10-K, or Form 10-KSB, as the case may be, as filed with the
        Commission under the Exchange Act (B) a more recent public announcement by
        the
        Corporation or (C) any other written notice by the Corporation or the
        Corporation’s transfer agent setting forth the number of shares of Common Stock
        outstanding.  Upon the written or oral request of the Holder, the
        Corporation shall within two (2) Trading Days confirm orally and in writing
        to
        the Holder the number of shares of Common Stock then outstanding. 
        In any
        case, the number of outstanding shares of Common Stock shall be determined
        after
        giving effect to the conversion or exercise of securities of the Corporation,
        including the Series B Preferred Stock, by the Holder or its affiliates since
        the date as of which such number of outstanding shares of Common Stock was
        publicly reported by the Corporation. 

      

      c)  Mechanics
        of Conversion

      

      (i) Delivery
        of Certificate Upon Conversion.
        Except
        as otherwise set forth herein, not later than five (5) Trading Days after
        each
        Conversion Date (the “Share
        Delivery Date”),
        the
        Corporation shall deliver to the Holder (A) a certificate or certificates
        which,
        after the Effective Date, shall be free of restrictive legends and trading
        restrictions (other than those required by the Purchase Agreement) representing
        the number of shares of Common Stock being acquired upon the conversion of
        shares of Series B Preferred Stock, and (B) a bank check in the amount of
        accrued and unpaid dividends (if the Corporation has elected or is required
        to
        pay accrued dividends in cash). After the Effective Date, the Corporation
        shall,
        upon request of the Holder, deliver any certificate or certificates required
        to
        be delivered by the Corporation under this Section electronically through
        the
        Depository Trust Corporation or another established clearing corporation
        performing similar functions. If in the case of any Notice of Conversion
        such
        certificate or certificates are not delivered to or as directed by the
        applicable Holder by the third Trading Day after the Conversion Date, the
        Holder
        shall be entitled to elect by written notice to the Corporation at any time
        on
        or before its receipt of such certificate or certificates thereafter, to
        rescind
        such conversion, in which event the Corporation shall immediately return
        the
        certificates representing the shares of Series B Preferred Stock tendered
        for
        conversion.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      i.  Obligation
        Absolute; Partial Liquidated Damages.
        The
        Corporation’s obligations to issue and deliver the Conversion Shares upon
        conversion of Series B Preferred Stock in accordance with the terms hereof
        are
        absolute and unconditional, irrespective of any action or inaction by the
        Holder
        to enforce the same, any waiver or consent with respect to any provision
        hereof,
        the recovery of any judgment against any Person or any action to enforce
        the
        same, or any setoff, counterclaim, recoupment, limitation or termination,
        or any
        breach or alleged breach by the Holder or any other Person of any obligation
        to
        the Corporation or any violation or alleged violation of law by the Holder
        or
        any other person, and irrespective of any other circumstance which might
        otherwise limit such obligation of the Corporation to the Holder in connection
        with the issuance of such Conversion Shares. In the event a Holder shall
        elect
        to convert any or all of its Series B Preferred Stock, the Corporation may
        not
        refuse conversion based on any claim that such Holder or any one associated
        or
        affiliated with the Holder has been engaged in any violation of law, agreement
        or for any other reason, unless, an injunction from a court, on notice,
        restraining and or enjoining conversion of all or part of this Series B
        Preferred Stock shall have been sought and obtained and the Corporation posts
        a
        surety bond for the benefit of the Holder in the amount of 150% of the
        Conversion Value of Series B Preferred Stock outstanding, which is subject
        to
        the injunction, which bond shall remain in effect until the completion of
        arbitration/litigation of the dispute and the proceeds of which shall be
        payable
        to such Holder to the extent it obtains judgment. In the absence of an
        injunction precluding the same, the Corporation shall issue Conversion Shares
        or, if applicable, cash, upon a properly noticed conversion. If the Corporation
        fails to deliver to the Holder such certificate or certificates pursuant
        to
        Section 6(d)(i) within four (4) Trading Days of the Share Delivery Date
        applicable to such conversion, the Corporation shall pay to such Holder,
        in
        cash, as liquidated damages and not as a penalty, for each $5,000 of Conversion
        Value of Series B Preferred Stock being converted, $50 per Trading Day
        (increasing to $100 per Trading Day after five (5) Trading Days and increasing
        to $200 per Trading Day eight (8) Trading Days after such damages begin to
        accrue) for each Trading Day after the Share Delivery Date until such
        certificates are delivered. Nothing herein shall limit a Holder’s right to
        pursue actual damages for the Corporation’s failure to deliver certificates
        representing shares of Common Stock upon conversion within the period specified
        herein and such Holder shall have the right to pursue all remedies available
        to
        it hereunder, at law or in equity including, without limitation, a decree
        of
        specific performance and/or injunctive relief.

       

      
        
          
          

        

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

       

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

      

      iv.  Fractional
        Shares.
        Upon a
        conversion hereunder, the Corporation shall not be required to issue stock
        certificates representing fractions of shares of the Common Stock.

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

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

      

      Section
        7.
         Certain
        Adjustments.

      

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

      

      b)  Subsequent
        Equity Sales.
        Neither
        the Corporation nor any Subsidiary, as applicable, at any time while Series
        B
        Preferred Stock is outstanding, shall offer, sell, grant any option to purchase
        or offer, sell or grant any right to reprice its securities, or otherwise
        dispose of or issue (or announce any offer, sale, grant or any option to
        purchase or other disposition) any Common Stock or Common Stock Equivalents
        entitling any Person to acquire shares of Common Stock at an effective price
        per
        share less than the then Conversion Value (“Dilutive Issuance”), as adjusted
        hereunder (if the holder of the Common Stock or Common Stock Equivalents
        so
        issued shall at any time, whether by operation of purchase price adjustments,
        reset provisions, floating conversion, exercise or exchange prices or otherwise,
        or due to warrants, options or rights per share which is issued in connection
        with such issuance, be entitled to receive shares of Common Stock at an
        effective price per share which is less than the Conversion Value, such issuance
        shall be deemed to have occurred for less than the Conversion Value).

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      c)  Subsequent
        Rights Offerings.
        The
        Corporation, at any time while the Series B Preferred Stock is outstanding,
        shall not issue rights, options or warrants to holders of Common Stock entitling
        them to subscribe for or purchase shares of Common Stock at a price per share
        less than the Conversion Value.

      

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

       

      e)  Calculations.
        All
        calculations under this Section 7 shall be made to the nearest cent or the
        nearest 1/100th of a share, as the case may be. The number of shares of Common
        Stock outstanding at any given time shall not include shares owned or held
        by or
        for the account of the Corporation, and the description of any such shares
        of
        Common Stock shall be considered on issue or sale of Common Stock. For purposes
        of this Section 7, the number of shares of Common Stock deemed to be issued
        and
        outstanding as of a given date shall be the sum of the number of shares of
        Common Stock (excluding treasury shares, if any) actually issued and
        outstanding.

      

      f)  Notice
        to Holders.

      

      i.  Adjustment
        to Conversion Price.
        Whenever the Conversion Value is adjusted pursuant to any of this Section
        7, the
        Corporation shall promptly mail to each Holder a notice setting forth the
        Conversion Value after such adjustment and setting forth a brief statement
        of
        the facts requiring such adjustment. If the Corporation issues a variable
        rate
        security, despite the prohibition thereon in the Purchase Agreement, the
        Corporation shall be deemed to have issued Common Stock or Common Stock
        Equivalents at the lowest possible conversion or exercise price at which
        such
        securities may be converted or exercised in the case of a Variable Rate
        Transaction (as defined in the Purchase Agreement), or the lowest possible
        adjustment price in the case of an MFN Transaction (as defined in the Purchase
        Agreement).

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      ii. Notice
        of Other Events.
        If (A)
        the Corporation shall declare a dividend (or any other distribution) on the
        Common Stock; (B) the Corporation shall declare redemption of the Common
        Stock;
        (C) the Corporation shall authorize the granting to all holders of the Common
        Stock rights or warrants to subscribe for or purchase any shares of capital
        stock of any class or of any rights; (D) the approval of any stockholders
        of the
        Corporation shall be required in connection with any reclassification of
        the
        Common Stock, or any Fundamental Transaction, (E) the
        Corporation shall authorize the voluntary or involuntary dissolution,
        liquidation or winding up of the affairs of the Corporation; then in each
        case,
        the Corporation shall cause to be filed at each office or agency maintained
        for
        the purpose of conversion of the Series B Preferred Stock, and shall cause
        to be
mailed
        to
        the Holders at their last addresses as they shall appear upon the stock
        books of
        the
        Corporation, at least 30 calendar days prior to the applicable record or
        effective date hereinafter specified, a notice stating (x)
        the
        date on which a record is to be taken for the purpose of such dividend,
        distribution, redemption, rights or warrants, or if a record is not to be
        taken,
        the date as of which the holders of the Common Stock of record to be entitled
        to
        such dividend, distributions, redemption, rights or warrants are to be
        determined or (y) the date on which such reclassification is expected to
        become
        effective or close, and the date as of which it is expected that holders
        of the
        Common Stock of record shall be entitled to exchange their shares of the
        Common
        Stock for securities, cash or other property deliverable upon such
        reclassification or Fundamental Transaction; provided,
        that
        the failure to mail such notice or any defect therein or in the mailing thereof
        shall not affect the validity of the corporate action required to be specified
        in such notice. 

      iii. Exempt
        Issuance.
        Notwithstanding the foregoing, no adjustment will be made under this Section
        7
        in respect of an Exempt Issuance.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

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

      

      Section
        8.
         Miscellaneous.
        

      

      a)  Notices.
        Any and
        all notices or other communications or deliveries to be provided by the Holders
        hereunder, including, without limitation, any Notice of Conversion, shall
        be in
        writing and delivered personally, by facsimile, sent by a nationally recognized
        overnight courier service, addressed to the Corporation, at the address provided
        in the Purchase Agreement, or such other address or facsimile number as the
        Corporation may specify for such purposes by notice to the Holders delivered
        in
        accordance with this Section. Any and all notices or other communications
        or
        deliveries to be provided by the Corporation hereunder shall be in writing
        and
        delivered personally, by facsimile, sent by a nationally recognized overnight
        courier service addressed to each Holder at the facsimile telephone number
        or
        address of such Holder appearing on the books of the Corporation, or if no
        such
        facsimile telephone number or address appears, at the principal place of
        business of the Holder. Any notice or other communication or deliveries
        hereunder shall be deemed given and effective on the earliest of (i) the
        date of
        transmission, if such notice or communication is delivered via facsimile
        at the
        facsimile telephone number specified in this Section prior to 5:00 p.m. local
        time, (ii) the date after the date of transmission, if such notice or
        communication is delivered via facsimile at the facsimile telephone number
        specified in this Section later than 5:00 p.m. local time on any date and
        earlier than 11:59 p.m. local time on such date, (iii) the second Business
        Day
        following the date of mailing, if sent by nationally recognized overnight
        courier service, or (iv) upon actual receipt by the party to whom such notice
        is
        required to be given.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

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

       

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

      

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

      

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

      

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

      

      

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the undersigned have executed this Certificate this 30th
        day of
        June, 2005.

       

       

      
        	
                /s/
Richard
                  A. Parlontieri

                
                  

                

                Name:Richard
                  A. Parlontieri

                Title:
                  President and Chief Executive Officer

              	 	
                /s/
Richard
                  A. Parlontieri

                
                  

                

                Name:Richard
                  A. Parlontieri

                Title:
                  Secretary

              

      

      

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      

      ANNEX
        A

      

      NOTICE
        OF
        CONVERSION

      

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

      

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

      

      Conversion
        calculations:

      

      
        
          	
                  Date
                    to Effect Conversion:
                    _____________________________________________

                
	
                  Number
                    of shares of Common Stock owned prior to Conversion:
                    _______________

                
	
                  Number
                    of shares of Series B Preferred Stock to be Converted:
                    ________________________

                
	
                  Value
                    of shares of Series B Preferred Stock to be Converted:
                    ____________________

                
	
                  Number
                    of shares of Common Stock to be Issued:
                    ___________________________

                
	
                  Certificate
                    Number of Series B Preferred Stock attached
                    hereto:________________________

                
	
                  Number
                    of Shares of Series B Preferred Stock represented by attached
                    certificate:__________

                
	 
	 
	
                  Number
                    of shares of Series B Preferred Stock subsequent to Conversion:
                    ________________

                

        

         

         

        
          	
                  Barron
                    Partners LP

                   

                  By:___________________________________

                  Name:
                    Andrew Barron Worden ____________

                  Title:
                    General
                    Partner ___________________

                

        

      

      

      
        
          
          

        

        
          16

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