Document:

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                                    DELAWARE
                           --------------------------                   Page 1
                                 The First State

         I, HARRIET SMITH WINDSOR, SECRETARY OF STATE OF THE STATE OF DELAWARE,
DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF
DESIGNATION OF "TRIBEWORKS, INC.", FILED IN THIS OFFICE ON THE THIRTY-FIRST DAY
OF MAY, A.D. 2005, AT 1:52 O'CLOCK P.M.

         A FILED COPY OF THIS CERTIFICATE HAS BEEN FORWARDED TO THE NEW CASTLE
COUNTY RECORDER OF DEEDS.

                                     (SEAL)

                                                       /s/ Harriet Smith Windsor
                                                       -------------------------
                                                       Harriet Smith Windsor,
                                                       Secretary of State

3143589 8100                                            AUTHENTICATION: 3916452

050450481                                                        DATE: 06-01-05

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                    CERTIFICATE OF DESIGNATION, PREFERENCES,
                            RIGHTS AND LIMITATIONS OF
                 SERIES A CONVERTIBLE REDEEMABLE PREFERRED STOCK
                                       OF
                                TRIBEWORKS, INC.

         Tribeworks, Inc. (the "Company"), a corporation organized and existing
under the laws of the State of Delaware,

         DOES HEREBY CERTIFY:

         that, pursuant to authority conferred upon the board of directors of
the Company (the "Board") by the Certificate of Incorporation of the Company,
and pursuant to the provisions of Section 151 of the Delaware General
Corporation Law, as amended (the "DGCL"), such Board, by unanimous written
consent of its members dated effective May 24, 2005, filed with the minutes of
the Board, adopted a resolution providing for the issuance of a series of One
Million (1,000,000) shares of Series A Convertible Redeemable Preferred Stock,
which resolution is as follows:

         RESOLVED, that pursuant to the authority vested in the Board in
accordance with the provisions of the Company's Certificate of Incorporation, a
series of Preferred Stock of the Company be and hereby is created, such series
of Preferred Stock to be designated Series A Convertible Redeemable Preferred
Stock, to consist of One Million (1,000,000) shares, to be issued at a price of
$0.50 per share (the "Stated Value"), with the voting powers, preferences and
relative, participating, optional and other special rights, and the
qualifications, limitations or restrictions of such series to be as set forth in
the Certificate of Designation.

         The voting powers, preferences and relative, participating, optional
and other special rights, and the qualifications, limitations or restrictions
thereof shall be as follows:

1. DESIGNATION AND AMOUNT. The shares of such series shall have a Stated Value
of $0.50 per share and shall be designated as Series A Convertible Redeemable
Preferred Stock (the "Series A Preferred Stock") and the number of shares
constituting the Series A Preferred Stock shall be One Million (1,000,000).

2. RANK. The Series A Preferred Stock shall rank prior to all of the Company's
common stock, par value $0.0004 per share ("Common Stock"),with respect to
dividends and distributions of assets upon liquidation, dissolution or winding
up of the Company, whether voluntary or involuntary.

3. DIVIDENDS.

         (a)      Dividends on Series A Preferred Stock. Beginning on the date
                  of issuance, holders of shares of Series A Preferred Stock
                  shall be entitled to receive annual

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                  cumulative dividends equal to ten percent (10%) of the
                  aggregate Liquidation Preference (which shall be the Stated
                  Value of the Series A Preferred Stock, plus accrued but unpaid
                  dividends, if any) per share of Series A Preferred Stock.
                  Accrued dividends with respect to each share of Series A
                  Preferred Stock shall be paid in cash or in shares of the
                  Company's common stock, par value $0.0004 per share ("Common
                  Stock"), at the Company's sole option.

         (b)      Restrictions on Dividends on Common Stock. During such time as
                  any Series A Preferred Stock is outstanding, the Company shall
                  not declare or pay any dividend on shares of Common Stock
                  unless the holders of the then outstanding shares of Series A
                  Preferred Stock shall have received all accrued dividends as
                  described in Section 3(a) above prior to the declaration and
                  payment of a dividend on the Common Stock.

         (c)      Payments to Holders of Series A Preferred Stock. Each such
                  dividend shall be payable to the holders of the Series A
                  Preferred Stock of record as they appear on the stock ledger
                  of the Company on the record date of such dividend. No
                  dividend shall be declared or paid if such declaration or
                  payment would cause the Company to violate any provision of
                  the DGCL.

4. LIQUIDATION PREFERENCE.

         (a)      Preferential Distributions. The initial liquidation preference
                  (the "Liquidation Preference") of the Series A Preferred Stock
                  shall be an amount equal to $0.50 per share (subject to
                  adjustment upward to the extent required to satisfy the
                  dividend preference requirements of Section 3). In the event
                  of any voluntary or involuntary liquidation (including a
                  partial liquidation, dissolution or winding up of the affairs
                  of the Company), the holders of shares of Series A Preferred
                  Stock then outstanding shall be entitled to be paid out of the
                  Company's funds legally available for distribution to its
                  stockholders an amount in cash equal to the Liquidation
                  Preference for each share outstanding before any payment shall
                  be made or any assets distributed to the holders of any Common
                  Stock. If the assets of the Company are insufficient to pay in
                  full the liquidation payments payable to the holders of
                  outstanding shares of the Series A Preferred Stock, then the
                  entire assets of the Company legally available for
                  distribution shall be distributed ratably among the holders of
                  the Series A Preferred Stock in proportion to the preferential
                  amount each such holder is otherwise entitled to receive.

         (b)      Certain Transactions. For purposes of this Section 4, the
                  sale, conveyance, exchange or transfer (for cash, shares of
                  stock, securities, or other consideration) of all or
                  substantially all of the assets or property of the Company or
                  the statutory exchange or consolidation or merger of the
                  Company with or into one or more entities, shall be deemed to
                  be a liquidation, dissolution, or winding up of the Company
                  (collectively, a "Liquidity Event"), unless the holders of all
                  of the then outstanding shares of Series A Preferred Stock
                  shall elect not to treat any such

                                      -2-
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                  transaction as a liquidation, dissolution or winding up of the
                  Company, in which case Section 6(c) shall apply.

         (c)      Actions upon Merger, Consolidation, Etc. Prior to the closing
                  of a transaction described in Section 4(b) which would
                  constitute a Liquidity Event, the Company shall either (i)
                  make all distributions it is required to make to the holders
                  of Series A Preferred Stock pursuant to the first sentence of
                  Section 4(a), or (ii) set aside sufficient funds from which
                  all such cash distributions required to be made to the holders
                  of Series A Preferred Stock can be made, or (iii) establish an
                  escrow or other similar arrangement with a third party
                  pursuant to which the proceeds payable to the Company from a
                  sale of all or substantially all the assets of the Company
                  will be used to make the liquidating payments to the holders
                  of Series A Preferred Stock immediately after the consummation
                  of such sale. In the event that the Company has not fully
                  complied with any of the foregoing alternatives, the Company
                  shall either: (i) cause such closing to be postponed until
                  such distributions have been made, or (ii) cancel such
                  transaction, in which event the rights of the holders of
                  shares of Series A Preferred Stock shall be the same as
                  existing immediately prior to such proposed transaction.

5. REDEMPTION.

         (a)      Redemption at the Company's Option. At any time on or after
                  the date of issuance (an "Optional Redemption Date"), the
                  Company may, at its election, redeem all, but not less than
                  all, of the shares of Series A Preferred Stock then
                  outstanding on such Optional Redemption Date.

         (b)      Redemption Payment. The aggregate Redemption Price (as defined
                  in Section 5(c) below) payable to each holder of shares of
                  Series A Preferred Stock pursuant to this Section 5 shall be
                  paid to such holder in a single lump-sum payment.

         (c)      Redemption Price. The redemption price (the "Redemption
                  Price") for each share of Series A Preferred Stock redeemed
                  pursuant to this Section 5 shall be the greater of (a) $0.50
                  per share of Series A Preferred Stock plus any accrued but
                  unpaid dividends thereon. If on or before the Optional
                  Redemption Date all funds necessary for such redemption shall
                  have been set aside by the Company, separate and apart from
                  its other funds in trust for the prorata benefit of the
                  holders of the Series A Preferred Stock, so as to be and
                  continue to be available therefor, then from and after the
                  Optional Redemption date, notwithstanding that any certificate
                  for shares of the Series A Preferred Stock shall not have been
                  surrendered for cancellation, the shares represented thereby
                  shall no longer be deemed outstanding, and all rights with
                  respect to shares of the Series A Preferred Stock shall
                  forthwith on the Optional Redemption Date cease and terminate
                  except only as to the right of the holders thereof to receive
                  the Redemption Price of such Shares so to be redeemed. Any
                  monies set aside by the Company and unclaimed at the end of
                  five (5) years from the Optional Redemption Date shall revert
                  to the general funds of the Company (provided that the holders
                  of the Series A Preferred

                                      -3-
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                  Stock have received notice of the redemption within thirty
                  (30) days after the Optional Redemption Date.

         (d)      Equitable Adjustment. The Redemption Price set forth in this
                  Section 5 shall be subject to equitable adjustment whenever
                  there shall occur a stock split, stock dividend, combination,
                  reorganization, recapitalization, reclassification or other
                  similar event involving a change in the Series A Preferred
                  Stock.

         (e)      Redemption Notice. At least thirty (30) days prior to the
                  Optional Redemption Date described specified in Section 5(a)
                  above, written notice (hereinafter referred to as the
                  "Redemption Notice") shall be delivered by the Company to each
                  holder of record of Series A Preferred Stock, at such holder's
                  address as shown on the stock ledger of the Company or its
                  transfer agent, if applicable. The Redemption Notice shall
                  contain the following information:

                  (i)      a statement that the Company intends to redeem all
                           the shares of Series A Preferred Stock held by the
                           holder and subject to redemption on such date, and
                           the total number of shares of Series A Preferred
                           Stock held by all holders which the Company has
                           determined will be redeemed on such date;

                  (ii)     the Redemption Date and the applicable Redemption
                           Price (subject to the provisions of Section 5(c)
                           above); and

                  (iii)    a statement that the holder is to surrender to the
                           Company, at the place designated in the Redemption
                           Notice or to the Company's designated transfer agent
                           (the "Transfer Agent"), its certificate or
                           certificates representing all of the shares of Series
                           A Preferred Stock so to be redeemed.

         (f)      Notice of Acknowledgement. Within thirty (30) days after
                  receipt of a Redemption Notice, any holder of Series A
                  Preferred Stock shall provide the Company with written notice
                  of such holder's acknowledgement of the Company's intention to
                  redeem his shares, which notice shall specify the number of
                  shares to be redeemed. All notices hereunder shall be deemed
                  to have been given if personally delivered, sent by facsimile
                  transmission, prepaid overnight courier, or certified or
                  registered mail.

         (g)      Surrender of Certificates. Each holder of shares of Series A
                  Preferred Stock shall surrender the certificate(s)
                  representing such shares to be redeemed to the Company at the
                  address specified in the Redemption Notice or to the Transfer
                  Agent, and thereupon the Redemption Price for such shares as
                  set forth in this Section 5 shall be paid to the order of the
                  person whose name appears on such certificate(s) and each
                  surrendered certificate shall be cancelled and retired.

                                      -4-
<PAGE>

         (h)      Option to Convert. After receipt of the Redemption Notice and
                  prior to the close of business on the business day prior to
                  the Redemption Date, the holders of the Series A Preferred
                  Stock so called for redemption may convert such stock, or any
                  number of shares thereof, into Common Stock in accordance with
                  the conversion privileges set forth in Section 6 hereof.
                  Unless: (i) the holder of shares of Series A Preferred Stock
                  to whom such Redemption Notice has been duly given shall have
                  exercised its rights to convert in accordance with Section 6
                  hereof; or (ii) the Company shall default in the payment of
                  the Redemption Price as set forth in the Redemption Notice (or
                  as determined in accordance with the provisions Section 5(c)),
                  upon such Redemption Date such holder shall no longer have any
                  voting or other rights with respect to such shares, except the
                  right to receive the monies payable upon such redemption from
                  the Company, without interest thereon, upon surrender (and
                  endorsement, if required by the Company or the Transfer Agent)
                  of the certificate(s), and the shares represented thereby
                  shall no longer be deemed to be outstanding as of the
                  Redemption Date. In the event a holder of Series A Preferred
                  Stock provides the Company with notice of conversion of all or
                  a portion of such Series A Preferred Stock into shares of
                  Common Stock on or after any Redemption Notice is provided,
                  the holder shall have be deemed to have converted such shares
                  as of the Redemption Date; provided, however, that in the
                  event the Company shall default in the payment of the
                  Redemption Price as set forth in such Redemption Notice (or as
                  determined in accordance with the provisions Section 5(c)),
                  the conversion shall not be effective unless the holder of the
                  Series A Preferred Stock electing to convert provides written
                  notice to the Company within twenty (20) days of the purported
                  Redemption Date of his desire to effect such conversion.

         (i)      Status. All shares of Series A Preferred Stock so redeemed
                  shall have the status of authorized but unissued preferred
                  stock, but such shares so redeemed shall not be reissued as
                  shares of Series A Preferred Stock created hereby.

         (j)      Common Stock Reservation. If the Company calls for redemption
                  of the Series A Preferred Stock, it shall reserve sufficient
                  shares of Common Stock for the purpose of issuing such shares
                  of Common Stock to holders of Series A Preferred Stock that
                  determine to convert such shares of Series A Preferred Stock
                  into Common Stock pursuant to the provisions of this Section
                  5.

6. CONVERSION. The Series A Preferred Stock shall be convertible as follows (the
"Conversion Rights"):

         (a)      Each share of Series A Preferred Stock shall be convertible,
                  at the sole option of the Company, at any time after the date
                  of issuance of such share, at the office of the Company or any
                  transfer agent for the Series A Preferred Stock, into such
                  number of fully paid and nonassessable shares of Common Stock
                  (the "Conversion Rate") as is determined by dividing $0.50 per
                  share by the Conversion Price for the Series A Preferred Stock
                  in effect on the date of such

                                      -5-
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                  conversion. The conversion price shall be $0.50 (such price
                  being referred to as the "Conversion Price").

         (b)      Mechanics of Conversion. Before any holder of Series A
                  Preferred Stock shall be entitled to convert any of such
                  shares into shares of Common Stock, such holder shall
                  surrender the certificate or certificates therefor, duly
                  endorsed, at the office of the Company or of any transfer
                  agent for the Series A Preferred Stock, and shall give written
                  notice by mail, postage prepaid, to the Company at its
                  principal corporate offices, of the election to convert the
                  same and shall state therein the name or names in which the
                  certificate or certificates for shares of Common Stock are to
                  be issued. The Company shall, as soon as practicable
                  thereafter, issue and deliver at such office to such holder of
                  Series A Preferred Stock, or to the nominee or nominees of
                  such holder, a certificate or certificates representing the
                  number of shares of Common Stock to which such holder shall be
                  entitled as aforesaid. Such conversion shall be deemed to have
                  been made immediately prior to the close of business on the
                  date of such surrender of the shares of Series A Preferred
                  Stock to be converted (the "Conversion Date"), and the person
                  or persons entitled to receive the shares of Common Stock
                  issuable upon such conversion shall be treated for all
                  purposes as the record holder or holders of such shares of
                  Common Stock as of the Conversion Date.

         (c)      Reorganizations and Recapitalizations. If at any time or from
                  time to time there shall be a reorganization or
                  recapitalization of the Common Stock (other than a
                  subdivision, combination or merger or sale of assets
                  transaction provided for in Section 4 hereof), then, as a
                  condition of such reorganization or recapitalization,
                  provision shall be made so that the holders of the Series A
                  Preferred Stock shall thereafter be entitled to receive upon
                  conversion of the Series A Preferred Stock the number of
                  shares of stock or other securities or property of the Company
                  or otherwise, to which a holder of Common Stock deliverable
                  upon conversion would have been entitled on such
                  reorganization or recapitalization. In any such case,
                  appropriate adjustment shall be made, in the good faith
                  determination of the Board of Directors of the Company, in the
                  application of the provisions of this Section 6 with respect
                  to the rights of the holders of the Series A Preferred Stock
                  after the recapitalization to the end that the provisions of
                  this Section 6 (including adjustment of the Conversion Price
                  then in effect and the number of shares receivable upon
                  conversion of the Series A Preferred Stock) shall be
                  applicable after that event in as nearly an equivalent manner
                  as may be practicable.

         (d)      No Impairment. The Company will not, by amendment of its
                  Certificate of Incorporation or through any reorganization,
                  recapitalization, transfer of assets, consolidation, merger,
                  dissolution, issue or sale of securities or any other
                  voluntary action, avoid or seek to avoid the observance or
                  performance of any of the terms to be observed or performed
                  hereunder by the Company, but will at all times in good faith
                  assist in the carrying out of all the provisions of this
                  Section 6 and in the taking of all such action (including the
                  reduction of par value of the Common Stock or the Series A
                  Preferred Stock) as may be necessary or

                                      -6-
<PAGE>

                  appropriate in order to protect the conversion rights of the
                  holders of the Series A Preferred Stock.

         (e)      No Fractional Shares. No fractional shares shall be issued
                  upon conversion of the Series A Preferred Stock and the number
                  of shares of Common Stock to be issued shall be rounded down
                  to the nearest whole share, and there shall be no payment to a
                  holder of Series A Preferred Stock for any such rounded
                  fractional shares. Whether or not fractional shares result
                  from such conversions shall be determined on the basis of the
                  total number of shares of Series A Preferred Stock the holder
                  is at the time converting into Common Stock and the number of
                  shares of Common Stock issuable upon such aggregate
                  conversion.

         (f)      Certificate as to Adjustments. Upon the occurrence of each
                  adjustment or readjustment of the Conversion Price of Series A
                  Preferred Stock pursuant to this Section 6, the Company, at
                  its expense, shall promptly compute such adjustment or
                  readjustment in accordance with the terms hereof and prepare
                  and furnish to each holder of Series A Preferred Stock a
                  certificate setting forth such adjustment or readjustment and
                  showing in detail the facts upon which such adjustment or
                  readjustment is based. The Company shall, upon the written
                  request at any time of any holder of Series A Preferred Stock,
                  furnish or cause to be furnished to such holder a like
                  certificate setting forth (i) such adjustment and
                  readjustment, (ii) the Conversion Price at the time in effect,
                  and (iii) the number of shares of Common Stock and the amount,
                  if any, of other property which at the time would be received
                  upon the conversion of a share of Series A Preferred Stock.

         (g)      Reservation of Stock Issuable Upon Conversion. The Company
                  shall 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 A Preferred Stock, such number of its shares of Common
                  Stock as shall from time to time be sufficient to effect the
                  conversion of all outstanding shares of the Series A Preferred
                  Stock, and if at any time the number of authorized but
                  unissued shares of Common Stock shall not be sufficient to
                  effect the conversion of all then outstanding shares of the
                  Series A Preferred Stock, then in addition to such other
                  remedies as shall be available to the holder of such Series A
                  Preferred Stock, the Company will take such corporate action
                  as may, in the opinion of its counsel, be necessary to
                  increase its authorized but unissued shares of Common Stock to
                  such number of shares as shall be sufficient for such
                  purposes.

         (h)      Notices. In the event that the Company shall propose at any
                  time:

                  (i)      to declare any dividend or distribution upon its
                           Common Stock, whether in cash, property, stock or
                           other securities, whether or not a regular cash
                           dividend and whether or not out of earnings or earned
                           surplus;

                                      -7-
<PAGE>

                  (ii)     to offer for subscription pro rata to the holders of
                           any class or series of its stock any additional
                           shares of stock of any class or series or any other
                           rights;

                  (iii)    to effect any reclassification or recapitalization of
                           its Common Stock outstanding involving a change in
                           the Common Stock; or

                  (iv)     to merge or consolidate with or into any other
                           Company, or sell, lease or convey all or
                           substantially all of its property or business, or to
                           liquidate, dissolve or wind up;

                          then, in connection with each such event, the Company
                          shall send to the holders of the Series A Preferred
                          Stock:

                           (A)      at least twenty (20) days' prior written
                                    notice of the date on which a record shall
                                    be taken for such dividend, distribution or
                                    subscription rights (and specifying the date
                                    on which the holders of Common Stock shall
                                    be entitled thereto) or for determining
                                    rights to vote in respect of the matters
                                    referred to in subsections (h)(iii) and
                                    (h)(iv) above; and

                           (B)      in the case of the matters referred to in
                                    subsections (h)(iii) and (h)(iv) above, at
                                    least twenty (20) days' prior written notice
                                    of the date when the same shall take place
                                    (and specifying the date on which the
                                    holders of Common Stock shall be entitled to
                                    exchange their Common Stock for securities
                                    or other property deliverable upon the
                                    occurrence of such events or the record date
                                    for the determination of such holders if
                                    such record date is earlier).

         Any notice required by the provisions of this Section 6 to be given to
the holders of shares of Series A Preferred Stock shall be deemed given if sent
by facsimile, by telex, or if deposited in the United States mail, postage
prepaid, and addressed to each holder of record at his, her or its address
appearing on the books of the Company.

7. VOTING RIGHTS. Except as otherwise required by the DGCL, this Certificate of
Designation, or the Company's Certificate of Incorporation, the holders of the
Series A Preferred Stock shall have no voting rights, and no consent of any
holder shall be required for the taking of any corporate action.

8. WARRANT. In the event of conversion of the outstanding shares of Series A
Preferred Stock, the Company shall issue to each holder of Series A Preferred
Stock a one year warrant to purchase one (1) share of Common Stock at a strike
price of US $1.00 for each share of Common Stock (the "Warrants") for each two
(2) shares of Series A Preferred Stock so converted.

                                      -8-
<PAGE>

9. RESTRICTIONS AND LIMITATIONS. So long as any shares of Series A Preferred
Stock shall be outstanding, the Company shall not, without first having obtained
the affirmative vote or written consent of the holders of at lease sixty-six and
two-thirds percent (66 2/3%) of the then outstanding shares of Series A
Preferred Stock, voting as a separate class:

         (a)      effect any amendment of the Company's Certificate of
                  Incorporation or By-Laws which would materially adversely
                  affect the rights of the Series A Preferred Stock; or

         (b)      amend, alter or repeal the preferences, special rights or
                  other powers of the Series A Preferred Stock so as to
                  adversely affect the holders of shares of Series A Preferred
                  Stock.

10. TRANSFERABILITY. The Series A Preferred Stock shall not be transferable by
the holders.

11. PAYMENT OF TAXES. The issuance and delivery of shares of Common Stock upon
conversion of shares of Series A Preferred Stock shall be made without charge to
the holder of Series A Preferred Stock for any issuance tax in respect thereof,
provided that the Company shall not be required to pay any tax which may be
payable in respect of any transfer and delivery of shares in a name other than
that of the holder of the Series A Preferred Stock that has been converted.

12. NOTICE TO THE COMPANY. Except as specifically set forth herein, all notices
or communications provided for or permitted hereunder shall be made in writing
by hand delivery, express overnight courier, registered first class mail, or
telecopier addressed (i) if to the Company, to its office at 243 Front Street,
San Francisco, CA 94111, Attention: J. Glenn Pogue, CEO, and (2) if to a holder
of the Series A Preferred Stock, to such holder at the address of such holder as
listed in the stock ledger of the Company or to such other address as the
Company or such holder, as the case may be, shall have designated by notice
similarly given. All such notices and communications shall be deemed to have
been duly given: when delivered by hand, if personally delivered; five (5)
business days after being deposited in the mail, registered or certified mail,
return receipt requested, postage prepaid, if mailed; when received after being
deposited in the regular mail; the next business day after being deposited with
an overnight courier, if deposited with a nationally recognized, overnight
courier service; when receipt is acknowledged, if by telecopier, so long as
followed upon the same day by overnight courier.

13. STATUS OF REDEEMED, CONVERTED OR UNISSUED SHARES OF SERIES A PREFERRED
STOCK. Any Series A Preferred Stock redeemed, purchased, converted or otherwise
acquired by the Company in any manner whatsoever shall not be reissued as part
of such Series A Preferred Stock and shall be retired promptly after the
acquisition thereof. Further, no shares of Series A Preferred Stock shall be
issued by the Company after June 15, 2005. Any shares of Series A Preferred
Stock that are not issued by June 15, 2005, shall return to the status of
undesignated shares of preferred stock of the Company.

                                      -9-
<PAGE>

14. PREFERENCE RIGHTS. Nothing contained herein shall be construed to prevent
the Board of Directors of the Company from issuing one (1) or more additional
series of preferred stock of the Company.

                            (EXECUTION PAGE FOLLOWS)

                                      -10-
<PAGE>

         IN WITNESS WHEREOF, Tribeworks, Inc. has caused its corporate seal to
be hereunto affixed and this Certificate to be signed by J. Glenn Pogue, its
Chief Executive Officer and Peter Jacobson, its Secretary, as of this 24th day
of May, 2005.

                                             /s/ J. GLENN POGUE
                                             -----------------------------------
                                             J. GLENN POGUE,
                                             Chief Executive Officer

                                             /s/ PETER JACOBSON
                                             -----------------------------------
                                             PETER JACOBSON,
                                             Secretary

                                      -11-exv10w1

 

Exhibit 10.1

Name of Subscriber WQN, Inc.
         
       

(please print or type)

Commitment Amount $10,000,000

SUBSCRIPTION AGREEMENT

SEAVIEW MEZZANINE FUND LP

(A Delaware Limited Partnership)

Seaview Mezzanine Fund LP

30 Kennedy Plaza

Suite 400

Providence, RI 02903

Ladies and Gentlemen:

     The undersigned (the “Investor”) hereby subscribes for and agrees, subject to the terms and
conditions of this Subscription Agreement: (i) to purchase a Limited Partnership Interest (the
“Interest”) in Seaview Mezzanine Fund LP, a limited partnership formed pursuant to the laws of
State of Delaware (the “Partnership”), at the commitment amount set forth above (“Commitment
Amount”), payable in the manner and at the times provided in the Seaview Mezzanine Fund LP Limited
Partnership Agreement (as it may be amended, the “Partnership Agreement”), (ii) to become a party
to the Partnership Agreement and (iii) to become a limited partner of the Partnership (a “Limited
Partner”). The Investor understands that this subscription is not revocable by the Investor.

     The Investor hereby acknowledges receipt of a copy of the private placement memorandum (the
“Private Placement Memorandum”). The Investor acknowledges that in connection with the purchase
hereunder the Investor is relying solely and exclusively on the Private Placement Memorandum and
the Partnership Agreement, and not on any other document, oral or written communication, with any
person (other than the Investor’s advisors and purchaser representative; if any). This
Subscription Agreement may be rejected, in whole or in part, by the General Partner in its sole
discretion.

     In connection with its execution of this Subscription Agreement, the Investor makes the
following representations and agreements, with knowledge that they will be relied upon by the
Partnership and the General Partner:

     1. The Investor has read the Private Placement Memorandum, the Partnership Agreement and this
Subscription Agreement. Prior to its subscription hereunder, the Investor has had the opportunity
to ask questions of and receive answers from representatives of the Partnership

 

 

concerning the terms and conditions of its proposed investment in the Partnership, and the
Investor has also had the opportunity to obtain additional information necessary to verify the
accuracy of information previously furnished about the Partnership, and has had access to any and
all information concerning the Partnership which the Investor and its legal and tax advisors
requested or considered necessary to make a proper evaluation of such investment. The Investor is
satisfied that it has received information with respect to all matters that it considers material
to its decision to make an investment in the Partnership.

     2. The Investor understands that no state or other governmental authority has made any finding
or determination relating to the fairness or substantive merit of an investment in the Partnership.
Further, the Investor may not rely on the Small Business Administration’s review of the
Partnership in deciding whether to invest.

     3. The Investor understands and agrees that:

     (a) that the Investor must bear the economic risk of its investment until the
termination of the Partnership;

     (b) that the Interest has not been registered under the Securities Act of 1933, as
amended (the “Securities Act”), and, therefore, cannot be resold or otherwise disposed of
unless, among other things, such sale or disposition is subsequently registered under the
Securities Act or unless an exemption from such registration is available;

     (c) that the Partnership is not being registered as an “investment company” as the term
“investment company” is defined in Section 3(a) of the Investment Company Act of 1940, as
amended (the “1940 Act”);

     (d) that the Partnership does not have any intention of registering the Partnership as
an “investment company” under the 1940 Act or of registering the sale of the Interest under
the Securities Act or of supplying the information which may be necessary to enable the
Investor to sell the Interest;

     (e) that the Interest has not been registered under applicable state securities laws by
reason of exemptions therefrom;

     (f) that the transfer of the Interest and the substitution of another Limited Partner
for the Investor are restricted by the terms of the Partnership Agreement;

     (g) that neither the General Partner nor its managers nor any other person or entity
selected by the General Partner to act as agent or adviser of the Partnership with respect
to managing the affairs of the Partnership will be registered as an investment adviser under
the Investment Advisers Act of 1940, as amended; and

     4. The Investor is purchasing the Interest for its own account and not for the account of
others, and the Investor is not acquiring the Interest with a view to its distribution and has no
present intention of reselling or otherwise disposing of all or any part of the Interest; and that
to the best knowledge and belief of the Investor there are no circumstances in the foreseeable
future, of which the Investor is now aware, which would require the resale of all or any portion of
the Interest. The Investor acknowledges that the General Partner and the Partnership will be
relying upon the accuracy

2

 

of the representation that the Investor does not intend to resell the Interest, and that
exemption of this investment from registration under the Securities Act may be lost if such
representation is inaccurate. In no event will the Investor sell, transfer or otherwise dispose of
the Interest or any portion thereof unless, in the opinion of counsel to the Partnership, the
Interest may be, subject to the terms and conditions of the Partnership Agreement, legally sold,
transferred or otherwise disposed of without registration and/or qualification under the Securities
Act and under other state or federal statutes, or such interest shall have been so registered
and/or qualified and a registration statement shall then be in effect with respect thereto.

     5. The Investor understands that, except as otherwise provided in the Partnership Agreement,
the Investor may not make less than the full amount of any required capital contribution, and that
default provisions with respect thereto, pursuant to which the Investor may lose a material portion
of its investment in the Partnership, are contained in the Partnership Agreement.

     6. The information set forth in the attached Investor Questionnaire is accurate as of the date
hereof. The Investor’s overall commitment to investments which are not readily marketable is not
disproportionate to its net worth and its investment in the Partnership will not cause its overall
commitment to such investments to become excessive. The Investor is not relying on the advice of
the Partnership, its General Partner (or its officers or employees) or any of their affiliates in
making this investment.

     7. The Investor has such knowledge and experience in financial and business matters that it is
capable of evaluating the merits and risks of this investment and to understand the particular
financial, legal and tax implications of the business to be conducted by the Partnership.

     8. The Investor is aware of its inability to liquidate readily its investment in the
Partnership in case of an emergency and the fact that the Interest may have to be held for an
indefinite period of time. In view of such facts, the Investor acknowledges that the Investor has
adequate financial means of providing for its current needs, anticipated future needs and possible
contingencies.

     9. If the Investor is contributing 10% or more of the total capital to be contributed by the
Limited Partners to the Partnership, such Investor is not an “investment company” under Section
3(a) of the 1940 Act or an entity which would be an “investment company” but for the exception
provided for in Section 3(c)(1) or Section 3(c)(7) of the 1940 Act.

     10. The Investor represents that: (i) it is authorized by all necessary action of its
shareholders, trustees, directors, partners, executors or the like and qualified to enter into this
Agreement and the Partnership Agreement and to invest and become a Limited Partner in, and
authorized to make its capital contribution to, the Partnership; (ii) it has not been formed for
the purpose of making an investment in the Partnership unless (in the case of a partnership or
corporation) all of its equity owners qualify as accredited individual investors; (iii) it has the
requisite power and authority to execute and deliver this Subscription Agreement and the
Partnership Agreement; (iv) the person signing the Subscription Agreement on behalf of the Investor
has been duly authorized to execute this Subscription Agreement and the Partnership Agreement; (v)
it is not subject to any restriction or agreement which prohibits or would be violated by the
execution and delivery of this Subscription Agreement or the consummation of the transactions
contemplated herein or pursuant to which the consent of any third person, government agency, firm
or corporation is required in order to give effect to the transactions contemplated herein; and
(vi) that the Investor is an “Accredited Investor” as such term is defined in Regulation D
promulgated under the Securities Act of 1933, as amended.

3

 

     This Subscription Agreement has been duly executed by the Investor and constitutes, and the
Partnership Agreement, when the Investor is admitted as a Limited Partner, will constitute, a valid
and legally binding agreement of the Investor.

     11. The Investor is not acquiring the Interest with a view to realizing any benefits under
United States federal income tax laws, and no representations have been made to the Investor that
any such benefits will be available as a result of the Investor’s acquisition, ownership or
disposition of the Interest.

     12. The Investor has not borrowed any portion of its contribution to the Partnership, either
directly or indirectly, from the Partnership, the General Partner, or any affiliate of the
foregoing.

     13. The Investor understands that it may not cancel, terminate or revoke this Subscription
Agreement or any agreement made by it hereunder and that it is not binding on the Partnership until
signed by it.

     14. The Investor agrees not to make any sale, transfer or other disposition of the Interest
unless registered under the Securities Act and applicable state securities laws or unless an
exemption from such registration is available. The Investor understands that there is no resale
market for the Interest, and neither the General Partner nor the Partnership is required, or
intends, to register the Interest under the Securities Act. The Investor understands that its
right to transfer its Interest will be subject to the conditions set forth in the Partnership
Agreement, which includes restrictions against transfer unless the General Partner consents to such
transfer. The Investor understands that the General Partner will not consent to a transfer of an
Interest unless the transferee meets the financial suitability standards required of an initial
subscriber or unless such conditions are waived by the General Partner, and that the General
Partner has the right, in its absolute discretion, to refuse to consent to the transfer of the
Interest. The Investor further understands that no trading market for the Interest does or, in all
likelihood, will exist at any time and that the Interest will at no time be transferable without
potential adverse tax consequences to it.

     15. The Investor understands that the information provided herein and in the Investor
Questionnaire will be relied upon by the Partnership and the General Partner for the purpose of
determining the eligibility of the Investor to purchase the Interest. Within a reasonable period
of time after receipt of a written request from the Partnership, the Investor agrees to provide
such information and to execute and deliver such documents as may be reasonably necessary to comply
with any and all laws and regulations to which the Partnership is or may be subject or as may
reasonably be required to determine the eligibility of the Investor to purchase the Interest. The
Investor agrees to indemnify and hold harmless the Partnership, the General Partner, any affiliate
of the Partnership or the General Partner, and any director, officer, employee, or agent of any
such party against any loss, damage, or liability due to or arising out of a breach of any
representation, warranty or agreement of the Investor contained in this Subscription Agreement and
in the Investor Questionnaire or in any other documents provided by the Investor to the Partnership
or the General Partner in connection with the Investor’s subscription and purchase of the Interest.

     16. This Agreement constitutes the entire agreement among the parties hereto with respect to
the subject matter hereof and may be amended only by a writing executed by all parties.

4

 

     17. This Agreement shall be enforced, governed and construed in all respects in accordance
with the laws of the State of Delaware, without regard to the conflicts of laws provisions of such
state.

     18. The Investor hereby irrevocably constitutes and appoints the General Partner, with full
power of substitution, as his true and lawful attorney, in his name, place, and stead, (a) to
execute a joinder agreement, substantially in the form attached hereto as Exhibit A, if and when
the Partnership accepts the Investor’s subscription for any or all of the Interest, and (b) to
execute, acknowledge, swear to, record, and file (i) such certificates or instruments as may be
required by law or are necessary (1) to conduct the Partnership’s business, (2) to reflect the
termination or dissolution of the Partnership, or (3) to reflect the transfer, admission,
withdrawal, and substitution of limited partners; (ii) any documents required by the Internal
Revenue Service in connection with an audit or examination of the Partnership; and (iii) any
required documents, financing statements, or certifications. Within five days after receipt of the
General Partner’s written request therefor, the Investor shall execute such other and further
powers of attorney and instruments as the General Partner deems necessary to carry out the purpose
of this transaction. The power of attorney granted herein shall be deemed coupled with the
Interest, shall be irrevocable, and shall survive the Investor’s death or incapacity or the
transfer of the Interest (but in the latter case, only to the extent necessary to complete the
transfer of the Interest and to terminate the Interest).

     19. All notices or other communications given or made hereunder shall be in writing and shall
be delivered, telecopied or mailed, if to the Investor, at the address set forth on the signature
page hereto and if to the Partnership at SeaView Mezzanine Fund LP LLC, 30 Kennedy Plaza, Suite
400, Providence, Rhode Island 02903, attn: James F. Stone, or at the address subsequently
designated by like notice.

     20. This Agreement may be executed by facsimile in any number of counterparts, each of which
shall be enforceable against the parties actually executing such counterparts, and all of which
together shall constitute one instrument.

     21. This Agreement and the rights, powers and duties set forth herein shall, except as set
forth herein, bind and inure to the benefit of the heirs, executors, administrators, legal
representatives, successors, and assigns of the parties hereto.

5

 

     IN WITNESS WHEREOF, the undersigned have executed this Subscription Agreement as
a document under seal on the 23rd day of June, 2005.

	 	 	 	 	 	 	 	 	 	 	 
	Subscription
	 	INVESTOR:	 	 

	Commitment Amount:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	$10,000,000
	 	By:	/s/ B. Michael Adler	 	 

	 
	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	 
	 	Name (print): 	B. Michael Adler	 	 

	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Title:	CEO	 	 

	 
	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	Typed or printed name and address
of Investor:
	 	Preferred address for receiving

communications (Do not complete if

already listed on prior column):	 	 

	 
	 	 	 	 	 	 	 	 
	WQN, Inc.
	 	Same	 	 

	 
	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	14911 Quorum Drive
	 	 	 	 	 	 	 	 
	 
	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	Dallas, Texas 75254
	 	 	 	 	 	 	 	 
	 
	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	Telecopier No.: 972-980-4453 

	 	Federal Tax Identification No.:	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	75-2838415	 	 

	 
	 	 	 	 

SUBSCRIPTION ACCEPTED:

Seaview Mezzanine Fund LP

By: Seaview GP LLC, its General Partner

	 	 	 	 
	 	 	 
	 	By:  	/s/  James F. Stone
 	 
	 	 	James F. Stone, Member 	 
	 	 	 	 
	 

6

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