Document:

CERTIFICATE
      OF DESIGNATIONS, VOTING POWERS,

    

    PREFERENCES
      AND RIGHTS

    

    OF

    

    THE
      SERIES OF PREFERRED STOCK

    

    OF

    

    INTELLIHOME,
      INC. (F/K/A THE JON ASHTON CORPORATION)

    

    TO
      BE DESIGNATED

    

    SERIES
      A CONVERTIBLE PREFERRED STOCK

    (As
      Amended January 2007)

    

    Pursuant
      to Article 2.13 of the Texas Business Corporation Act, I, Mark Trimble,
      President of IntelliHome, Inc., a Texas corporation (the "Corporation"),
      hereby certify that the following is a true and correct copy of a resolution
      duly adopted by the Corporation's Board of Directors as of January 3, 2007,
      and
      that said resolution has not been amended or rescinded and is in full force
      and
      effect at the date hereof:

    

    RESOLVED,
      that pursuant to the authority expressly granted and vested in the Board of
      Directors of the Corporation by the Corporation's Articles of Incorporation,
      as
      amended to date, and the authorization of the holders of outstanding shares
      of
      Series A Preferred Stock, the Board of Directors hereby amends the terms of
      a
      series of Preferred Stock of the Corporation, par value $0.001 per share,
      designated "Series A Convertible Preferred Stock" and consisting of six million
      (6,000,000) shares, and hereby fixes the voting powers, designations,
      preferences and relative, participating, optional or other rights and the
      qualifications, limitations or restrictions thereon, of the Series A Convertible
      Preferred Stock (the "Series
      A Preferred Stock"),
      as
      follows:

    

    1. Voting
      Rights.
      The
      holder of each share of Series A Preferred Stock shall have the right to one
      vote for each share of Common Stock into which such Series A Preferred Stock
      could then be converted, and with respect to such vote, such holder shall have
      full voting rights and powers equal to the voting rights and powers of the
      holders of Common Stock, and shall be entitled, notwithstanding any provision
      hereof, to notice of any shareholders’ meeting in accordance with the bylaws of
      this Corporation, and shall be entitled to vote, together with holders of Common
      Stock, with respect to any question upon which holders of Common Stock have
      the
      right to vote. Fractional votes shall not, however, be permitted and any
      fractional voting rights available on an as-converted basis (after aggregating
      all shares into which shares of Series A Preferred Stock held by each holder
      could be converted) shall be rounded to the nearest whole number (with one-half
      being rounded upward). Notwithstanding anything herein to the contrary, the
      Corporation shall not without first obtaining the approval (by vote or written
      consent, as provided by law) of holders of at least a majority of the then
      outstanding Series A Preferred Stock issue shares of its common stock at prices
      less than, or issue other securities convertible into shares of common stock
      at
      prices less than, the then applicable Conversion Price; provided, however,
      that
      such approval requirement shall terminate on the earlier of (a) the first date
      on which less than 1,500,000 shares of Series A Preferred Stock remains issued
      and outstanding, or (b) 24 months following commencement of public trading
      in
      the Corporation’s common stock. For purposes hereof, a public trading market
      will be deemed to have commenced upon the commencement of trading on a national
      exchange or upon the first publication of bid and ask prices on an
      over-the-counter market.

    

    2. Dividends.
      Subject
      to the rights of series of Preferred Stock which may from time to time come
      into
      existence, the holders of shares of Series A Preferred Stock shall be entitled
      to receive dividends, out of any assets legally available therefor, in an amount
      equal to that paid on Common Stock, payable quarterly when, as and if declared
      by the Board of Directors.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. Liquidation
      Preference.

    

    (a) In
      the
      event of any proposed liquidation, dissolution or winding up of this
      Corporation, the Corporation shall provide written notice (the "Liquidation
      Notice")
      to the
      holders of Series A Preferred Stock of the anticipated date on which the initial
      payment in liquidation of the Corporation will be made, which date shall not
      be
      earlier than fifteen days following the giving of the Liquidation Notice (the
      "Liquidation
      Date").
      In
      the event of any liquidation, dissolution or winding up of this Corporation,
      either voluntary or involuntary, subject to the right of series of Preferred
      Stock that may from time to time come into existence, the holders of Series
      A
      Preferred Stock shall be entitled to receive, prior and in preference to any
      distribution of any of the assets of the Corporation to the holders of Common
      Stock by reason of their ownership thereof, an amount per share equal to the
      sum
      of (i) $0.05 for each outstanding share of Series A Preferred Stock (the
      "Liquidation
      Preference")
      and
      (ii) an amount equal to accrued but unpaid dividends on such share. If upon
      the
      occurrence of such event, the assets and funds thus distributed among the
      holders of the Series A Preferred Stock shall be insufficient to permit the
      payment to such holders of the full aforesaid preferential amounts, then,
      subject to the rights of series of Preferred Stock that may from time to time
      come into existence, the entire assets and funds of the Corporation legally
      available for distribution shall be distributed ratably among the holders of
      the
      Series A Preferred Stock in proportion to the amount of such stock owned by
      each
      such holder in proportion to the preferential amount each such holder is
      otherwise entitled to receive.

    

    (b) Upon
      the
      completion of the distribution required by Section
      3(a)
      and any
      other distributions that may be required with respect to series of Preferred
      Stock that may from time to time come into existence, if assets remain in this
      Corporation, the holders of Common Stock of this Corporation shall receive
      all
      of the remaining assets of this Corporation.

    

    (c)(i) For
      purposes of this Section
      3,
      a
      liquidation, dissolution or winding up of this Corporation shall be deemed
      to be
      occasioned by, or to include, (A) the acquisition of the Corporation by another
      entity by means of any transaction or series of related transactions (including,
      without limitation, any reorganization, merger or consolidation but, excluding
      any merger effected exclusively for the purpose of changing the domicile of
      the
      Corporation); or (B) a sale of all or substantially all of the assets of the
      Corporation; unless the Corporation’s shareholders of record as constituted
      immediately prior such acquisition or sale will, immediately after such
      acquisition or sale (by virtue of securities issued as consideration for the
      Corporation’s acquisition or sale or otherwise) hold at least 50% of the voting
      power of the surviving or acquiring entity.

    

    (ii) In
      any of
      such events, as a condition of, and upon closing of such transaction, and
      assuming the consideration paid in such transaction is entirely payable in
      cash
      and/or securities ("Traded
      Shares")
      publicly traded on a national exchange or Nasdaq, holders of Series A Preferred
      Stock shall be entitled to receive in liquidation of the holder’s entire
      interest in the Series A Preferred Stock an amount, payable in cash or in Traded
      Shares, or a combination thereof, per share equal to the greater
      of:

    

    (A) the
      Liquidation Preference plus the accrued but unpaid dividends (the "Liquidation
      Amount");
      or

    

    (B) the
      amount per share of Common Stock that would have been received pursuant to
      the
      transaction had the Series A Preferred Stock been converted into shares of
      Common Stock immediately prior to such transaction (the "Converted
      Amount").

    

    (iii) In
      any of
      such events, as a condition of, and upon closing of such transaction, and
      assuming the consideration paid in such transaction is in part or in whole
      by
      shares of stock ("Non-Traded
      Shares")
      not
      qualifying as Traded Shares, and the Liquidation Amount is less than the
      Converted Amount, holders of Series A Preferred Stock shall be entitled to
      receive in liquidation of the holder’s entire interest in the Series A Preferred
      Stock, at the election of the holder, either:

    

    (A) the
      Liquidation Amount in cash, but not in excess of the cash consideration paid
      in
      the transaction less the Corporation’s expenses incurred in connection with such
      transaction and, to the extent cash is insufficient to pay the full Liquidation
      Amount, the balance in Non-Traded Shares or other consideration determined
      by
      the Board of Directors to be reasonably equivalent to the balance of the
      Liquidation Amount; or

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    (B) the
      Converted Amount, payable in cash and Non-Traded Shares in the same proportions
      as if the Series A Preferred Stock had been converted into Common Stock
      immediately prior to the transaction.

    

    (d) For
      purposes of this Section
      3,
      the
      value of Traded Shares shall be deemed to be the average of the closing prices
      of the securities on such exchange over the thirty-day period ending three
      (3)
      days prior to closing.

    

    4. Conversion.
      The
      shares of Series A Preferred Stock shall be subject to conversion rights as
      follows (the "Conversion
      Rights"):

    

    (a) Holder
      Conversion Right.
      Subject
      to the limitation set forth in Section
      4(b),
      each
      share of Series A Preferred Stock shall be convertible, at the option of the
      holder thereof, at any time after the date of issuance of such share and on
      or
      prior to the day prior to the Liquidation Date, if any, as may have been fixed
      in any Liquidation Notice, at the office of this Corporation or any transfer
      agent for such stock, into such number of fully paid and nonassessable shares
      of
      Common Stock as is determined by dividing the Liquidation Amount by the
      Conversion Price applicable to such share, determined as hereafter provided,
      in
      effect on the date the certificate is surrendered for conversion. The
      "Conversion
      Price"
      per
      share shall initially be fixed at $0.05; subject to adjustment as set forth
      in
Section
      4(d).

    

    (b) Limitation
      on Conversion.
      The
      holders of shares of Series A Preferred Stock shall be prohibited from
      converting shares of Series A Preferred Stock, and the Corporation shall not
      honor any attempted conversion of Series A Preferred Stock, if, and to the
      extent, the shares of Common Stock held by such converting holder of Series
      A
      Preferred Stock following any attempted conversion would exceed 4.99% of the
      outstanding shares of Common Stock of the Corporation after giving effect to
      such conversion.

    

    (c) Mechanics
      of Conversion.
      Before
      any holder of Series A Preferred Stock shall be entitled to convert the same
      into shares of Common Stock, he shall surrender the certificate or certificates
      therefor, duly endorsed, at the office of the Corporation or of any transfer
      agent for the Series A Preferred Stock, and shall give written notice to the
      Corporation at its principal office, of the election to convert the same and
      shall state therein the name or names in which the certificate or certificates
      for shares of Common Stock are to be issued. The Corporation 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 for 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, 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 such date. If conversion occurs,
      other than pursuant to an effective registration under the Securities Act of
      1933, certificates evidencing the shares of Common Stock issuable upon
      conversion shall bear the following restrictive legend:

    

    THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED. THE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT
      AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF EITHER AN
      EFFECTIVE REGISTRATION STATEMENT FOR THESE SHARES UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED, OR AN OPINION OF COUNSEL THAT REGISTRATION IS NOT REQUIRED
      UNDER SAID ACT.

    

    (d) Conversion
      Price Adjustments of Preferred Stock for Certain Dilutive Issuances, Splits
      and
      Combinations.
      The
      Conversion Price of the Series A Preferred Stock shall be subject to adjustment
      from time to time as follows:

    

    (i) Reserved

    

    (ii) Reserved

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (iii) In
      the
      event the Corporation should at any time or from time to time after the Purchase
      Date fix a record date for the effectuation of a split or subdivision of the
      outstanding shares of Common Stock or the determination of holders of Common
      Stock entitled to receive a dividend or other distribution payable in additional
      shares of Common Stock or other securities or rights convertible into, or
      entitling the holder thereof to receive directly or indirectly, additional
      shares of Common Stock (hereinafter referred to as "Common
      Stock Equivalents")
      without payment of any consideration by such holder for the additional shares
      of
      Common Stock or the Common Stock Equivalents (including the additional shares
      of
      Common Stock issuable upon conversion or exercise thereof), then, as of such
      record date (or the date of such dividend distribution, split or subdivision
      if
      no record date is fixed), the Conversion Price of the Series A Preferred Stock
      shall be appropriately decreased so that the number of shares of Common Stock
      issuable on conversion of each share of such series shall be increased in
      proportion to such increase of the aggregate of shares of Common Stock
      outstanding and those issuable with respect to such Common Stock
      Equivalents.

    

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

    

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

    

    (f) Recapitalization.
      If at
      any time or from time to time there shall be a recapitalization of the Common
      Stock (other than a subdivision, combination or merger or sale of assets
      transaction provided for elsewhere in this Section
      4)
      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 Corporation or otherwise, to which a holder of Common Stock deliverable
      upon
      conversion would have been entitled on such recapitalization. In any such case,
      appropriate adjustment shall be made in the application of the provisions of
      this Section
      4
      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
      4
      (including adjustment of the Conversion Price then in effect and the number
      of
      shares purchasable upon conversion of the Series A Preferred Stock) shall be
      applicable after that event as nearly equivalent as may be
      practicable.

    

    (g) No
      Impairment.
      This
      Corporation will not, by amendment of its Articles 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 this Corporation, but will at all times in good faith
      assist in the carrying out of all the provisions of this Section
      4
      and in
      taking of all such action as may be necessary or appropriate in order to protect
      the Conversion Rights of the holders of the Series A Preferred Stock against
      impairment.

    

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

    

    (i) No
      fractional shares shall be issued upon the conversion of any share or shares
      of
      the Series A Preferred Stock, and the number of shares of Common Stock to be
      issued shall be rounded to the nearest whole share. Whether or not fractional
      shares are issuable upon such conversion 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.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (ii) Upon
      the
      occurrence of each adjustment or readjustment of the Conversion Price of Series
      A Preferred Stock pursuant this Section
      4,
      the
      Corporation, 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 Corporation 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 (A) such adjustment and
      readjustment, (B) the Conversion Price for the Series A Preferred Stock at
      the
      time in effect, and (C) 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.

    

    (i) Notice
      of Record Dates.
      In the
      event of any taking by the Corporation of a record of the holders of any class
      of securities for the purpose of determining the holders thereof who are
      entitled to receive any dividend (other than a cash dividend) or other
      distribution, any right to subscribe for, purchase or otherwise acquire any
      shares of stock of any class or any other securities or property, or to receive
      any other right, the Corporation shall mail to each holder of Series A Preferred
      Stock, at least 20 days prior to the date specified therein, a notice specifying
      the date on which any such record is to be taken for the purpose of such
      dividend, distribution or right, and the amount and character of such dividend,
      distribution or right.

    

    (j) Reservation
      of Stock Issuable Upon Conversion.
      The
      Corporation 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 shares
      of its 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 shares of Common Stock shall not be sufficient
      to effect the conversion of all then outstanding shares of the Series A
      Preferred Stock, in addition to such other remedies as shall be available to
      the
      holder of such Preferred Stock, the Corporation 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, including, without limitation, engaging in best
      efforts to obtain the requisite shareholder approval of any necessary amendment
      to the Corporation’s Articles of Incorporation.

    

    (k) Notices.
      Any
      notice required by the provisions of this Section
      4
      to be
      given to the holders of shares of the Series A Preferred Stock shall be deemed
      given if deposited in the United States mail, postage prepaid, and addressed
      to
      each holder of record at his address appearing on the books of the
      Corporation.

    

    5. Redemption.
      The
      Series A Preferred Stock is not redeemable except in the event of a deemed
      liquidation under Section
      3.

    

    6. Status
      of Converted or Redeemed Shares.
      In the
      event any shares of Series A Preferred Stock shall be converted pursuant to
      Section
      4
      hereof,
      the shares so converted or redeemed shall be cancelled and shall not be issuable
      by the Corporation.

    

    IN
      WITNESS WHEREOF, the undersigned has executed this Certificate this ___ day
      of
      January 2007.

     

    
      	 	 	 
	 	
              INTELLIHOME,
                INC.

            
	 
 	 
 	 
 
	
            	By:  	 
	 	 	
              

            
	 	Name:    	Mark Trimble
	 	Title:	President

    

     

    
      
        
        

      

      
        5CERTIFICATE
      OF DESIGNATIONS, VOTING POWERS,

    

    PREFERENCES
      AND RIGHTS

    

    OF

    

    THE
      SERIES OF PREFERRED STOCK

    

    OF

    

    INTELLIHOME,
      INC. (F/K/A THE JON ASHTON CORPORATION)

    

    TO
      BE DESIGNATED

    

    SERIES
      B CONVERTIBLE PREFERRED STOCK

    (As
      Amended January 2007)

    

    Pursuant
      to Article 2.13 of the Texas Business Corporation Act, I, Mark Trimble,
      President of IntelliHome, Inc., a Texas corporation (the “Corporation”),
      hereby certify that the following is a true and correct copy of a resolution
      duly adopted by the Corporation’s Board of Directors as of January 3, 2007, and
      that said resolution has not been amended or rescinded and is in full force
      and
      effect at the date hereof:

    

    RESOLVED,
      that pursuant to the authority expressly granted and vested in the Board of
      Directors of the Corporation by the Corporation’s Articles of Incorporation, as
      amended to date, and the authorization of the holders of outstanding shares
      of
      Series B Preferred Stock, the Board of Directors hereby amends the terms of
      a
      series of Preferred Stock of the Corporation, par value $0.001 per share,
      designated “Series B Convertible Preferred Stock” and consisting of two million
      seven hundred thousand (2,700,000) shares, and hereby fixes the voting powers,
      designations, preferences and relative, participating, optional or other rights
      and the qualifications, limitations or restrictions thereon, of the Series
      B
      Convertible Preferred Stock (the “Series
      B Preferred Stock”),
      as
      follows:

    

    1. Voting
      Rights.
      The
      holder of each share of Series B Preferred Stock shall have the right to one
      vote for each share of Common Stock into which such Series B Preferred Stock
      could then be converted, and with respect to such vote, such holder shall have
      full voting rights and powers equal to the voting rights and powers of the
      holders of Common Stock, and shall be entitled, notwithstanding any provision
      hereof, to notice of any shareholders’ meeting in accordance with the bylaws of
      this Corporation, and shall be entitled to vote, together with holders of Common
      Stock, with respect to any question upon which holders of Common Stock have
      the
      right to vote. Fractional votes shall not, however, be permitted and any
      fractional voting rights available on an as-converted basis (after aggregating
      all shares into which shares of Series B Preferred Stock held by each holder
      could be converted) shall be rounded to the nearest whole number (with one-half
      being rounded upward).

    

    2. Dividends.
      Subject
      to the rights of series of Preferred Stock which may from time to time come
      into
      existence, the holders of shares of Series B Preferred Stock shall be entitled
      to receive dividends, out of any assets legally available therefore, prior
      and
      in preference to any declaration or payment of any dividend (payable other
      than
      in Common Stock or other securities or rights convertible into or entitling
      the
      holder thereof to receive, directly or indirectly, additional shares of Common
      Stock of the Corporation) on the Common Stock of the Corporation, at the rate
      of
      $0.008 per share per annum or, if greater (as determined on a per annum basis
      and an as converted basis for the Series B Preferred Stock), an amount equal
      to
      that paid on any other outstanding shares of the Corporation, payable quarterly
      when, as and if declared by the Board of Directors. Such dividends shall accrue
      on each share from and after the date of issuance and shall accrue from day
      to
      day whether or not earned or declared. Such dividends shall be cumulative so
      that if such dividends in respect of any previous or current annual dividend
      period, at the annual rate specified above, shall not have been paid the
      deficiency shall first be fully paid before any dividend or other distribution
      shall be paid on or declared and set apart for the Common Stock. Any
      accumulation of dividends on the Series B Preferred Stock shall not bear
      interest. Cumulative dividends with respect to a share of Series B Preferred
      Stock which are accrued, payable and/or in arrears shall upon conversion of
      such
      share to Common Stock not then or thereafter be paid and shall cease to be
      accrued, payable and/or in arrears.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. Protective
      Provisions.
      Notwithstanding anything herein to the contrary, so long as not less than
      1,250,000 shares of Series B Preferred Stock are outstanding, the Corporation
      shall not without first obtaining the approval (by vote or written consent,
      as
      provided by law) of holders of at least a majority of the then outstanding
      Series B Preferred Stock:

    

    (a) sell,
      convey or otherwise dispose of or transfer all or substantially all of the
      property or business of the Corporation or merge into or consolidate with any
      other corporation (other than a wholly-owned subsidiary of the Corporation)
      or
      effect any transaction or series of related transactions in which more than
      fifty percent (50%) of the voting power of the Corporation is disposed
      of;

    

    (b) alter
      or
      change the rights, preferences or privileges of the shares of Series B Preferred
      Stock so as to affect adversely the Series B Preferred Stock;

    

    (c) increase
      or decrease (other than by redemption or conversion) the total number of
      authorized shares of Series B Preferred Stock;

    

    (d) authorize
      or issue, or obligate itself to issue, any other equity security, including
      any
      other security convertible into or exercisable for any equity security having
      a
      preference over, or being on a parity with, the Series B Preferred Stock with
      respect to dividends or upon liquidation; 

    

    (e) redeem,
      purchase or otherwise acquire (or pay into or set aside for a sinking fund
      for
      such purpose) any share or shares of Preferred Stock or Common Stock; provided,
      however, that this restriction shall not apply to (i) the repurchase of shares
      of Common Stock from employees, officers, directors, consultants or other
      persons performing services for the Corporation or any subsidiary pursuant
      to
      agreements under which the Corporation has the option to repurchase such shares
      at cost or at cost upon the occurrence of certain events, such as the
      termination of employment, or (ii) the redemption of shares of Series B
      Preferred Stock in accordance with Section
      6;
      

    

    (f) amend
      the
      Corporation’s Articles of Incorporation or Bylaws in a manner so as to affect
      adversely the Series B Preferred Stock; or

    

    (g) issue,
      until 12 months following the commencement of public trading in the
      Corporation’s common stock, shares of its common stock at prices less than, or
      issue other securities convertible into shares of common stock at prices less
      than, the then applicable Conversion Price. For purposes hereof, a public
      trading market will be deemed to have commenced upon the commencement of trading
      on a national exchange or upon the first publication of bid and ask prices
      on an
      over-the-counter market.

    

    4. Liquidation
      Preference.

    

    (a) In
      the
      event of any proposed liquidation, dissolution or winding up of the Corporation,
      the Corporation shall provide written notice (the “Liquidation
      Notice”)
      to the
      holders of Series B Preferred Stock of the anticipated date on which the initial
      payment in liquidation of the Corporation will be made, which date shall not
      be
      earlier than fifteen days following the giving of the Liquidation Notice (the
      “Liquidation
      Date”).
      In
      the event of any liquidation, dissolution or winding up of this Corporation,
      either voluntary or involuntary, subject to the right of series of Preferred
      Stock that may from time to time come into existence, the holders of Series
      B
      Preferred Stock shall be entitled to receive, prior and in preference to any
      distribution of any of the assets of the Corporation to the holders of Common
      Stock, Series A Preferred Stock or any other class or series of stock ranking
      on
      liquidation junior to the Series B Preferred Stock by reason of their
      ownership thereof, an amount per share equal to the sum of (i) $0.10 for each
      outstanding share of Series B Preferred Stock (the “Liquidation
      Preference”)
      and
      (ii) an amount equal to accrued but unpaid dividends on such share. If upon
      the
      occurrence of such event, the assets and funds thus distributed among the
      holders of the Series B Preferred Stock and any class or series of stock ranking
      on liquidation on a parity with the Series B Preferred Stock shall be
      insufficient to permit the payment to such holders of the full aforesaid
      preferential amounts, then the entire assets and funds of the Corporation
      legally available for distribution shall be distributed ratably among the
      holders of the Series B Preferred Stock and any class or series of stock ranking
      on liquidation on a parity with the Series B Preferred Stock in proportion
      to the amount of such stock owned by each such holder in proportion to the
      preferential amount each such holder is otherwise entitled to
      receive.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    (b) After
      the
      payment of all preferential amounts required to be paid to the holders of shares
      of Series B Preferred Stock and any other class or series of stock of the
      Corporation ranking on liquidation senior to the Common Stock, the remaining
      assets available for distribution to the Corporation’s stockholders shall be
      distributed among the holders of the shares of Series B Preferred Stock and
      Common Stock, pro rata based on the number of shares held by each such holder,
      treating for this purpose all shares of Series B Preferred Stock as if they
      had
      been converted to Common Stock pursuant to the terms set forth in Section
      5
      immediately prior to such dissolution, liquidation or winding up of the
      Corporation; provided, however, that if the aggregate amount which the holders
      of Series B Preferred Stock are entitled to receive under Sections
      4(a) and 4(b)
      shall
      exceed $0.30 per share (subject to appropriate adjustment in the event of a
      stock split, stock dividend, combination, reclassification, or similar event
      affecting the Series B Preferred Stock ) (the “Maximum
      Participation Amount”),
      each
      holder of Series B Preferred Stock shall be entitled to receive upon such
      dissolution, liquidation or winding up of the Corporation the greater of (i)
      the
      Maximum Participation Amount and (ii) the amount such holder would have received
      if such holder had converted his, her or its shares of Series B Preferred Stock
      into Common Stock immediately prior to such dissolution, liquidation or winding
      up of the Corporation (the greater of which is hereinafter referred to as the
      “Series
      B Liquidation Amount”).

     

    (c) Upon
      the
      completion of the distribution required by Sections
      4(a) and 4(b)
      and any
      other distributions that may be required with respect to series of Preferred
      Stock that may from time to time come into existence, if assets remain in the
      Corporation, the holders of Common Stock of the Corporation shall receive all
      of
      the remaining assets of this Corporation.

    

    (d)(i) For
      purposes of this Section
      4,
      a
      liquidation, dissolution or winding up of the Corporation shall be deemed to
      be
      occasioned by, or to include, (A) the acquisition of the Corporation by another
      entity my means of any transaction or series of related transactions (including,
      without limitation, any reorganization, merger or consolidation but, excluding
      any merger effected exclusively for the purpose of changing the domicile of
      the
      Corporation); or (B) a sale of all or substantially all of the assets of the
      Corporation; unless the Corporation’s shareholders of record as constituted
      immediately prior such acquisition or sale will, immediately after such
      acquisition or sale (by virtue of securities issued as consideration for the
      Corporation’s acquisition or sale or otherwise) hold at least 50% of the voting
      power of the surviving or acquiring entity.

    

    (ii) In
      any of
      such events, as a condition of, and upon closing of such transaction, and
      assuming the consideration paid in such transaction is entirely payable in
      cash
      and/or securities (“Traded
      Shares”)
      publicly traded on a national exchange or Nasdaq, holders of Series B Preferred
      Stock shall be entitled to receive in liquidation of the holder’s entire
      interest in the Series B Preferred Stock an amount, payable in cash or in Traded
      Shares, or a combination thereof, per share equal to the Series B Liquidation
      Amount.

    

    (iii) In
      any of
      such events, as a condition of, and upon closing of such transaction, and
      assuming the consideration paid in such transaction is in part or in whole
      by
      shares of stock (“Non-Traded
      Shares”)
      not
      qualifying as Traded Shares, and the Liquidation Amount is less than the Series
      B Liquidation Amount, holders of Series B Preferred Stock shall be entitled
      to
      receive in liquidation of the holder’s entire interest in the Series B Preferred
      Stock, at the election of the holder, either:

    

    (A) the
      Series B Liquidation Amount in cash, but not in excess of the cash consideration
      paid in the transaction less the Corporation’s expenses incurred in connection
      with such transaction and, to the extent cash is insufficient to pay the full
      Series B Liquidation Amount, the balance in Non-Traded Shares or other
      consideration determined by the Board of Directors to be reasonably equivalent
      to the balance of the Series B Liquidation Amount; or

    

    (B) the
      Series B Liquidation Amount, payable in cash and Non-Traded Shares in the same
      proportions as if the Series B Preferred Stock had been converted into Common
      Stock immediately prior to the transaction.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    (e) For
      purposes of this Section
      4,
      the
      value of Traded Shares shall be deemed to be the average of the closing prices
      of the securities on such exchange over the thirty-day period ending three
      (3)
      days prior to closing.

    

    5. Conversion.
      The
      shares of Series B Preferred Stock shall be subject to conversion rights as
      follows (the “Conversion
      Rights”):

    

    (a) Holder
      Conversion Right.
      Subject
      to the limitation set forth in Section
      5(c),
      each
      share of Series B Preferred Stock shall be convertible, at the option of the
      holder thereof, at any time after the date of issuance of such share and on
      or
      prior to the day prior to the Liquidation Date, if any, as may have been fixed
      in any Liquidation Notice, at the office of this Corporation or any transfer
      agent for such stock, into such number of fully paid and nonassessable shares
      of
      Common Stock as is determined by dividing the Liquidation Preference by the
      Conversion Price applicable to such share, determined as hereafter provided,
      in
      effect on the date the certificate is surrendered for conversion. The
“Conversion
      Price”
per
      share shall initially be fixed at $0.10; subject to adjustment as set forth
      in
Section
      5(e).

    

    (b) Automatic
      Conversion.
      Each
      share of Series B Preferred Stock shall automatically be converted into shares
      of Common Stock at the Conversion Price at the time in effect for such Series
      B
      Preferred Stock immediately upon the earlier of (i) the Corporation’s sale of
      shares of its Common Stock in a firm commitment underwritten public offering
      pursuant to a registration statement under the Securities Act of 1933, the
      public offering price of which is not less than $0.30 per share (adjusted to
      reflect subsequent stock dividends, stock splits or recapitalizations) and
      in an
      aggregate amount not less than $10,000,000, or (ii) the date specified by
      written consent or agreement of the holders of not less than two-thirds of
      the
      then outstanding shares of Series B Preferred Stock.

    

    (c) Limitation
      on Conversion.
      The
      holders of shares of Series B Preferred Stock shall be prohibited from
      converting shares of Series B Preferred Stock pursuant to Section
      5(a),
      and the
      Corporation shall not honor any attempted conversion of Series B Preferred
      Stock, if, and to the extent, the shares of Common Stock held such converting
      holder of Series B Preferred Stock following any attempted conversion would
      exceed 4.99% of the outstanding shares of Common Stock of the Corporation after
      giving effect to such conversion.

    

    (d) Mechanics
      of Conversion.
      Before
      any holder of Series B Preferred Stock shall be entitled to convert the same
      into shares of Common Stock, he shall surrender the certificate or certificates
      therefor, duly endorsed, at the office of the Corporation or of any transfer
      agent for the Series B Preferred Stock, and shall give written notice to the
      Corporation at its principal office, of the election to convert the same and
      shall state therein the name or names in which the certificate or certificates
      for shares of Common Stock are to be issued. The Corporation shall, as soon
      as
      practicable thereafter, issue and deliver at such office to such holder of
      Series B Preferred Stock, or to the nominee or nominees of such holder, a
      certificate or certificates for the number of shares of Common Stock to which
      such holder shall be entitled as aforesaid. 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 B Preferred Stock to be converted, 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 such date. If conversion occurs,
      other than pursuant to an effective registration under the Securities Act of
      1933, certificates evidencing the shares of Common Stock issuable upon
      conversion shall bear the following restrictive legend:

    

    THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED. THE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT
      AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF EITHER AN
      EFFECTIVE REGISTRATION STATEMENT FOR THESE SHARES UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED, OR AN OPINION OF COUNSEL THAT REGISTRATION IS NOT REQUIRED
      UNDER SAID ACT.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (e) Conversion
      Price Adjustments of Preferred Stock for Certain Dilutive Issuances, Splits
      and
      Combinations.
      The
      Conversion Price of the Series B Preferred Stock shall be subject to adjustment
      from time to time as follows:

    

    (i) Reserved

    

    (ii) Reserved

    

    (iii) In
      the
      event the Corporation should at any time or from time to time after the Purchase
      Date fix a record date for the effectuation of a split or subdivision of the
      outstanding shares of Common Stock or the determination of holders of Common
      Stock entitled to receive a dividend or other distribution payable in additional
      shares of Common Stock or other securities or rights convertible into, or
      entitling the holder thereof to receive directly or indirectly, additional
      shares of Common Stock (hereinafter referred to as “Common
      Stock Equivalents”)
      without payment of any consideration by such holder for the additional shares
      of
      Common Stock or the Common Stock Equivalents (including the additional shares
      of
      Common Stock issuable upon conversion or exercise thereof), then, as of such
      record date (or the date of such dividend distribution, split or subdivision
      if
      no record date is fixed), the Conversion Price of the Series B Preferred Stock
      shall be appropriately decreased so that the number of shares of Common Stock
      issuable on conversion of each share of such series shall be increased in
      proportion to such increase of the aggregate of shares of Common Stock
      outstanding and those issuable with respect to such Common Stock
      Equivalents.

    

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

    

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

    

    (g) Recapitalization.
      If at
      any time or from time to time there shall be a recapitalization of the Common
      Stock (other than a subdivision, combination or merger or sale of assets
      transaction provided for elsewhere in this Section
      5)
      provision shall be made so that the holders of the Series B Preferred Stock
      shall thereafter be entitled to receive upon conversion of the Series B
      Preferred Stock the number of shares of stock or other securities or property
      of
      the Corporation or otherwise, to which a holder of Common Stock deliverable
      upon
      conversion would have been entitled on such recapitalization. In any such case,
      appropriate adjustment shall be made in the application of the provisions of
      this Section
      5
      with
      respect to the rights of the holders of the Series B Preferred Stock after
      the
      recapitalization to the end that the provisions of this Section
      5
      (including adjustment of the Conversion Price then in effect and the number
      of
      shares purchasable upon conversion of the Series B Preferred Stock) shall be
      applicable after that event as nearly equivalent as may be
      practicable.

    

    (h) No
      Impairment.
      The
      Corporation will not, by amendment of its Articles 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 Corporation, but will at all times in good faith
      assist in the carrying out of all the provisions of this Section
      5
      and in
      taking of all such action as may be necessary or appropriate in order to protect
      the Conversion Rights of the holders of the Series B Preferred Stock against
      impairment.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

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

    

    (i) No
      fractional shares shall be issued upon the conversion of any share or shares
      of
      the Series B Preferred Stock, and the number of shares of Common Stock to be
      issued shall be rounded to the nearest whole share. Whether or not fractional
      shares are issuable upon such conversion shall be determined on the basis of
      the
      total number of shares of Series B 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.

    

    (ii) Upon
      the
      occurrence of each adjustment or readjustment of the Conversion Price of Series
      B Preferred Stock pursuant this Section
      5,
      the
      Corporation, 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 B 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 Corporation shall, upon the written request at any
      time of any holder of Series B Preferred Stock, furnish or cause to be furnished
      to such holder a like certificate setting forth (A) such adjustment and
      readjustment, (B) the Conversion Price for the Series B Preferred Stock at
      the
      time in effect, and (C) 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 B Preferred Stock.

    

    (j) Notice
      of Record Dates.
      In the
      event of any taking by the Corporation of a record of the holders of any class
      of securities for the purpose of determining the holders thereof who are
      entitled to receive any dividend (other than a cash dividend) or other
      distribution, any right to subscribe for, purchase or otherwise acquire any
      shares of stock of any class or any other securities or property, or to receive
      any other right, the Corporation shall mail to each holder of Series B Preferred
      Stock, at least 20 days prior to the date specified therein, a notice specifying
      the date on which any such record is to be taken for the purpose of such
      dividend, distribution or right, and the amount and character of such dividend,
      distribution or right.

    

    (k) Reservation
      of Stock Issuable Upon Conversion.
      The
      Corporation 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 B Preferred Stock, such number of shares
      of its Common Stock as shall from time to time be sufficient to effect the
      conversion of all outstanding shares of the Series B Preferred Stock; and if
      at
      any time the number of authorized shares of Common Stock shall not be sufficient
      to effect the conversion of all then outstanding shares of the Series B
      Preferred Stock, in addition to such other remedies as shall be available to
      the
      holder of such Preferred Stock, the Corporation 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, including, without limitation, engaging in best
      efforts to obtain the requisite shareholder approval of any necessary amendment
      to the Corporation’s Articles of Incorporation.

    

    (l) Notices.
      Any
      notice required by the provisions of this Section
      5
      to be
      given to the holders of shares of the Series B Preferred Stock shall be deemed
      given if deposited in the United States mail, postage prepaid, and addressed
      to
      each holder of record at his address appearing on the books of the
      Corporation.

    

    6. Redemption.
      The
      shares of Series B Preferred Stock are not redeemable except in accordance
      with
      the liquidation provisions of Section 4.

    

    IN
      WITNESS WHEREOF, the undersigned has executed this Certificate this ___ day
      of
      January 2007.

     

    
      
        	 	 	
                INTELLIHOME,
                  INC.

              
	 	 	 	 
	 	 	By: 	 
	
              	 	 	
                

              
	
              	 	Name:	Mark Trimble
	 	 	Title: 	
                President

              

      

       

    

    
      
        
        

      

      
        6

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