Document:

Exhibit
        4.1

       

    

    CERTIFICATE
      OF DESIGNATION OF

    PREFERENCES,
      RELATIVE, PARTICIPATING, OPTIONAL, AND OTHER SPECIAL

    RIGHTS,
      QUALIFICATIONS, LIMITATIONS AND RESTRICTIONS

    OF

    SERIES
      B
      PREFERRED STOCK

    AND
      SERIES C PREFERRED STOCK

    OF

    MODTECH
      HOLDINGS, INC.

    

    The
      undersigned, Dennis Shogren and Kenneth Cragun, certify that:

    

    ONE.
       They
      are
      the duly elected Chief Executive Officer and Secretary, respectively, of the
      above-named corporation.

    

    TWO.
       Pursuant
      to and in accordance with the provisions of Section 151 of the Delaware General
      Corporation Law and the Certificate of Incorporation of this corporation, the
      Board of Directors of this corporation has duly adopted the following recitals
      and resolutions.

    

    WHEREAS,
      the Certificate of Incorporation of this corporation provides for a class of
      its
      authorized shares known as Preferred Stock comprised of 5,000,000 shares
      issuable from time to time in one or more series; and

    

    WHEREAS,
      the Board of Directors of this corporation is authorized to fix the number
      of
      shares of any series of Preferred Stock and to determine the designation of
      any
      such series and the rights, preferences, privileges and restrictions granted
      to
      or imposed upon any wholly unissued series of Preferred Stock; and

    

    WHEREAS,
      the Board of Directors has previously fixed and determined the designation
      of,
      the number of shares constituting, and the rights, preferences, privileges
      and
      restrictions relating to a Series A Preferred Stock; and

     

    WHEREAS,
      the Board of Directors of this corporation desires to establish two additional
      classes of Preferred
      Stock , one to be designated as the "Series
      B
      Preferred Stock" and the other to be designated as “Series C Preferred
      Stock,”
      and to
      fix the
      number of shares in each class
      and the
      rights, preferences, privileges, restrictions and other matters
      relating
      thereto;

    

    NOW,
      THER.EFORE, BE IT RESOLVED, that a series consisting of
      50,000
      shares of Preferred
      Stock, $0.01 par value per share, is hereby established and designated
      as the
      "Series B Preferred Stock" of this corporation
      (the "Series
      B Preferred Stock"),
      and
      that the Series B Preferred Stock shall have the rights, preferences and
      privileges, and shall be subject to the restrictions, as are hereinafter set
      forth; and 

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    RESOLVED
      FURTHER, that
      a
      series consisting of
      50,000
      shares of Preferred
      Stock, $0.01 par value per share, is hereby established and designated
      as the
      "Series C Preferred Stock" of this corporation
      (the "Series
      C Preferred Stock"),
      and
      that the Series C Preferred Stock shall have the rights, preferences and
      privileges, and shall be subject to the restrictions, as are hereinafter set
      forth:

    

    1.  Dividend
      Provisions.
      

    

    (a) Series
      B Dividends.
      The
      holders of outstanding Series B Preferred Stock shall be entitled to receive
      when, as and if declared by the Board of Directors, out of unissued shares
      of
      Series B Preferred Stock at the time legally available therefor, dividends,
      in
      whole and/or fractional shares of such Series B Preferred Stock, at the rate
      of
      Eight Percent (8%) per share of outstanding Series B Preferred Stock per annum.
      Dividends shall accrue on each share of Series B Preferred Stock from the date
      of its original 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 year at said rate per share per annum shall not have
      been paid or declared and set apart for all shares of Series B Preferred Stock
      at the time outstanding, the deficiency shall be fully paid on or declared
      and
      set apart for such shares before this corporation pays any dividend (except
      a
      dividend in shares of Common Stock) on Common Stock or any dividend on Series
      C
      Preferred Stock or on any Preferred Stock issued subsequent to the Series B
      Preferred Stock. Undeclared or unpaid dividends shall not bear or accrue
      interest. 

    

    (b) Series
      C Dividends.
      No
      dividend shall be declared or paid on the Common Stock of this corporation
      (other than in Common Stock of this corporation) or on any other series of
      Preferred Stock, except Series B Preferred Stock as provided above, unless
      prior
      to and in preference thereof a dividend of equal amount per share is declared
      and paid on the outstanding shares of the Series C Preferred Stock out of any
      assets legally available therefore. Unless and until declared, no dividends
      shall accrue on outstanding shares of Series C Preferred Stock.

    

    2. Liquidation
      Preference.

    

    (a) Series
      B Liquidation Preference.
      In the
      event of any voluntary or involuntary liquidation, dissolution or winding up
      of
      this corporation, the holders of each then outstanding share of Series B
      Preferred Stock shall be entitled to receive, prior and in preference to any
      distribution of the assets or surplus funds of this corporation to the holders
      of Common Stock, Series C Preferred Stock, or any series of Preferred Stock
      issued subsequent to the Series B Preferred Stock, an amount equal to One
      Hundred Dollars ($100.00) per share, (appropriately adjusted to reflect stock
      splits, stock dividends, reorganizations, consolidations and similar changes
      with respect to the Series B Preferred Stock occurring after the date of
      the first issuance of shares of the Series B Preferred Stock), plus all accrued
      but unpaid cumulative dividends on such share of Series B Preferred Stock (the
      "Series
      B Liquidation Preference").
      The
      Series B Liquidation Preference shall be paid or set apart for payment before,
      in connection with any liquidation, dissolution or winding up of the
      corporation, the payment or setting apart for payment of any amount for, or
      the
      distribution of any assets of this corporation to, the holders of Series C
      Preferred Stock, Common Stock or any series of Preferred Stock issued subsequent
      to the Series B Preferred Stock. If the assets or surplus funds to be
      distributed to the holders of the Series B Preferred Stock are insufficient
      to
      permit the payment to such holders of the full Series B Liquidation Preference,
      then the entire assets and surplus funds of this corporation legally available
      for distribution shall be distributed ratably among the holders of the Series
      B
      Preferred Stock in proportion to the share of the Series B Liquidation
      Preference each such holder is otherwise entitled to receive in respect of
      the
      shares of Series B Preferred Stock then held by such holder.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    (b)
       Series
      C Liquidation Preference.
      In the
      event of any voluntary or involuntary liquidation, dissolution or winding up
      of
      this corporation and after the payment or setting apart for payment of the
      Series B Liquidation Preference, the holders of each then outstanding share
      of
      Series C Preferred Stock shall be entitled to receive, by reason of their
      ownership thereof, prior and in preference to any distribution of any of the
      assets of this corporation to the holders of the Common Stock or any series
      of
      Preferred Stock issued subsequent to the Series C Preferred Stock an amount
      equal to One Hundred Dollars ($100.00) per share (appropriately adjusted to
      reflect stock splits, stock dividends, reorganizations, consolidations and
      similar changes with respect to the Series C Preferred Stock occurring
      after the date of the first issuance of shares of the Series C Preferred Stock),
      plus any declared but unpaid dividends on such share of Series C Preferred
      Stock
      (the "Series
      C Liquidation Preference").
      The
      Series C Liquidation Preference shall be paid or set apart for payment before,
      in connection with any liquidation, dissolution or winding up of the
      corporation, the payment or setting apart for payment of any amount for, or
      the
      distribution of any assets of this corporation to, the holders of Common Stock
      or any series of Preferred Stock issued subsequent to the Series C Preferred
      Stock. If the remaining assets or surplus funds to be distributed to the holders
      of the Series C Preferred Stock are insufficient to permit the payment to such
      holders of the full Series C Liquidation Preference, then the entire remaining
      assets and surplus funds of this corporation legally available for distribution
      shall be distributed ratably among the holders of the Series C Preferred Stock
      in proportion to the share of the Series C Liquidation Preference each such
      holder is otherwise entitled to receive in respect of the shares of Series
      C
      Preferred Stock then held by such holder.

    

    (c)  Remaining
      Assets.
      After
      the payment or setting apart for payment in full of the Series B Liquidation
      Preference and the Series C Liquidation Preference, any remaining assets or
      surplus funds of this corporation shall be distributed to the holders of Series
      B Preferred Stock, the holders of Series C Preferred Stock and the holders
      of
      Common Stock, ratably on the basis of the number of shares of Common Stock
      then
      held by them and then issuable upon conversion of the Series B Preferred Stock
      and Series C Preferred Stock then held by them.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    3. Redemption.

    

    (a) Optional.
      Following the twentieth (20th)
      consecutive trading day on which the closing price of the Common Stock (or
      the
      closing bid price if there is no closing price) equals or exceeds Two Dollars
      ($2.00) per share on the exchange or market on which the Common Stock is then
      traded, this corporation may at any time thereafter to the extent it may
      lawfully do so, at the option of its Board of Directors, redeem in whole or
      in
      part (i) the Series B Preferred Stock by paying in cash therefor a sum equal
      to
      One Hundred Dollars ($100.00) per share of Series B Preferred Stock
      (appropriately adjusted to reflect stock splits, stock dividends,
      reorganizations, consolidations and similar changes with respect to the
      Series B Preferred Stock occurring after the date of the first issuance of
      shares of Series B Preferred), together with all accrued but unpaid dividends
      on
      such shares to the date of redemption (the "Series
      B Redemption Price")
      and
      (ii) the Series C Preferred Stock by paying in cash therefor a sum equal to
      One
      Hundred Dollars ($100.00) per share of Series C Preferred Stock (appropriately
      adjusted to reflect stock splits, stock dividends, reorganizations,
      consolidations and similar changes with respect to the Series C Preferred Stock
      occurring after the date of the first issuance of shares of Series C Preferred
      Stock), together with all declared but unpaid dividends on such shares to the
      date of redemption (the "Series
      C Redemption Price").
      Any
      redemption of Series B Preferred Stock and Series C Preferred Stock shall be
      pro
      rata among the outstanding shares of Series B Preferred Stock and Series C
      Preferred Stock based upon the number of shares held by each holder thereof.
      

    

    (b) Notice
      of Redemption.
      The
      corporation shall give written notice at least thirty (30) days prior to the
      redemption date, of its intention to redeem the Series B Preferred Stock
      and Series C Preferred Stock as provided herein, to each holder thereof, such
      notice to be addressed to each holder at the address of such holder as it
      appears on the stock transfer books of the corporation and to specify (i) the
      total number of shares of Series B Preferred Stock and Series C Preferred
      Stock being redeemed; (ii) the number of shares of Series B Preferred
      Stock and Series C Preferred Stock held by the holder which the corporation
      intends to redeem; (iii) the date of redemption, the Series B Redemption
      Price and the Series C Redemption Price; and (iv) the date on which the
      conversion rights with respect to such shares terminate in accordance with
      Section 4 below. On or after the date of redemption, each holder of
      Series B Preferred Stock and Series C Preferred Stock shall surrender his
      certificate for the number of shares to be redeemed as stated in the notice
      provided by the corporation (other than those shares properly converted pursuant
      to Section 4 below). If less than all the shares represented by such
      certificates are to be redeemed, the corporation shall forthwith issue a new
      certificate for the unredeemed shares.

    

    4. Conversion. 

    

    The
      holders of the Series B Preferred Stock and Series C Preferred Stock shall
      have
      conversion rights as follows:

    

    (a) Optional
      Conversion into Common Stock.
      Each
      share of Series B Preferred Stock and Series C 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 fifth day prior to the redemption
      date for such share fixed by a redemption notice in accordance with
      Section 3 above, at the office of the corporation or any transfer agent for
      such stock, into such number of fully paid and nonassessable shares of Common
      Stock as is determined by, in the case of Series B Preferred Stock, dividing
      One
      Hundred Dollars ($100.00), plus accrued but unpaid dividends on the Series
      B
      Preferred Stock by the "Series
      B Conversion Price"
      in
      effect at the time and, in the case of Series C Preferred Stock, dividing One
      Hundred Dollars ($100.00), plus declared but unpaid dividends on the Series
      C
      Preferred Stock by the "Series
      C Conversion Price"
      in
      effect at the time. The initial Series B Conversion Price per share is
      Forty-Eight Cents ($0.48) and the initial Series C Conversion Price per share
      is
      Forty-Nine Cents ($0.49); provided, however, that the Series B Conversion Price
      and the Series C Conversion Price shall be subject to adjustment as set forth
      in
      subsection 4(c). 

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (b)
      Mechanics
      of Conversion from Preferred Stock to Common Stock.
      No
      fractional shares of Common Stock shall be issued upon conversion of Series
      B
      Preferred Stock or Series C Preferred Stock. In lieu of any fractional shares
      to
      which the holder would otherwise be entitled, the corporation shall pay cash
      equal to such fraction multiplied by the then effective Series B Conversion
      Price or Series C Conversion Price, as applicable. Before any holder of Series
      B
      Preferred Stock or Series C Preferred Stock shall be entitled to convert the
      same into shares of Common Stock pursuant to Section 4(a) hereof, 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
      or
      Series C Preferred Stock, and shall give written notice to the corporation
      at
      such office that he elects to convert the same and shall state therein his
      name
      or the name or names of his nominees in which he wishes the certificate or
      certificates for shares of Common Stock 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 Series C Preferred Stock, or to his nominee
      or
      nominees, a certificate or certificates for the number of shares of Common
      Stock
      to which he shall be entitled as aforesaid, together with cash in lieu of any
      fraction of a share. 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 Preferred Stock to be converted, and the person or persons entitled
      to
      receive the shares of Common Stock issuable upon conversion shall be treated
      for
      all purposes as the record holder or holders of such shares of Common Stock
      on
      such date.

     

    (c) Adjustment
      in Conversion Price. 

    

    (i) Combinations
      or Subdivisions.
      If the
      corporation at any time or from time to time after the date of the first
      issuance of shares of the Series B Preferred Stock and Series C Preferred Stock
      ( the “Original
      Issue Date”)
      declares or pays any dividend on its Common Stock payable in Common Stock or
      in
      any right to acquire Common Stock, or effects a subdivision of the outstanding
      shares of Common Stock into a greater number of shares of Common Stock (by
      stock
      split, reclassification or otherwise), or if the outstanding shares of Common
      Stock is combined or consolidated, by reclassification or otherwise, into a
      lesser number of shares of Common Stock, then the Series B Conversion Price
      and
      Series C Conversion Price in effect immediately prior to such event shall,
      concurrently with the effectiveness of such event, be proportionately decreased
      or increased, as appropriate.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (ii)
       Reorganization;
      Recapitalization.
      If at
      any time or from time to time there shall be a reclassification or
      recapitalization of the capital stock of the corporation (other than a
      subdivision, reclassification, stock split or combination provided for elsewhere
      in this Section 4), any consolidation, merger, or reorganization of the
      corporation with or into another entity or entities, or the conveyance of all
      or
      substantially all of the assets of the corporation to another entity, each
      share
      of Series B Preferred Stock and Series C Preferred Stock shall thereafter be
      convertible into the number of shares of stock or other securities or property
      (including cash) to which to which a holder of the number of shares of Common
      Stock deliverable upon conversion of such shares would have been entitled on
      such reclassification, recapitalization, consolidation, merger, reorganization
      or conveyance. 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 B Preferred Stock and Series C Preferred Stock after
      the reclassification, recapitalization, consolidation, merger, reorganization
      or
      conveyance to the end that the provisions of this Section 4 (including
      adjustment of the Series B Conversion Price and Series C Conversion Price then
      in effect and the number of shares to be issued upon conversion of the Series
      B
      Preferred Stock and Series C Preferred Stock) shall be applicable after that
      event as nearly equivalent as may be practicable. 

    

    (iii) Issuance
      of Additional Securities; Other Adjustments.
      Except
      as otherwise provided in this Section 4(c), the Series B Conversion Price and
      the Series C Conversion Price will not be adjusted upward or downward because
      of
      the issuance of additional securities after the Original Issue
      Date.

    

    (d) No
      Impairment. This
      corporation will not, by amendment of its Certificate of
      Incorporation, or through 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 the 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 and Series C Stock, respectively, against impairment.

    

    (e) Certificate
      as to Adjustments
      Upon the
      occurrence of each adjustment or readjustment
      of the Series B Conversion Price and Series C Conversion Price pursuant to
      this
      Section 4, this 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
      and each holder of Series C Preferred Stock a certificate setting
      forth such adjustment or readjustment and showing in detail the facts upon
      which
      such adjustment
      or readjustment is based. This corporation shall, upon the written request
      at
      any time of any holder of Series B Preferred Stock or Series C 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 such series
      of 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 and Series
      C
      Preferred Stock.

    (f)
       Reservation
      of Stock Issuable Upon Conversion.
      This
      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 and Series C Preferred Stock, such number
      of its shares of Common Stock as shall from time to time be sufficient to effect
      the conversion of all then outstanding shares of the Series B Preferred Stock
      and Series C Preferred Stock.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (g)
       Notices.
      Any
      notice required by the provisions of this Section 4 to be given to the holders
      of shares of Series B Preferred Stock or Series C 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 and
      the
      shares of this corporation.

     

    5.
       
      Voting Rights.
      Except
      as otherwise required by law and the provisions of this Section 5, the
      holders of Series B Preferred Stock and Series C Preferred Stock shall be
      entitled to notice of any stockholders' meeting in accordance with the Bylaws
      of
      the Corporation and to vote together with the holders of Common Stock as a
      single class of capital stock upon any matter submitted to stockholders for
      a
      vote. Holders of Series B Preferred Stock and Series C Preferred Stock
      shall have that number of votes per share equal to the number of shares of
      Common Stock into which each such share of each such series of Preferred Stock
      held by such holder is convertible at the record date for the determination
      of
      the stockholders entitled to vote on such matters or, if no such record date
      is
      established, at the date such vote is taken or any written consent of
      stockholders is solicited. Fractional votes shall not, however, be permitted
      and
      any fractional voting rights resulting from the foregoing formula (after
      aggregating all shares into which shares of Series B Preferred Stock and Series
      C Preferred Stock held by each holder could be converted) shall be rounded
      to
      the nearest whole number (with one-half being rounded upward). 

    

    6.
        Protective
      Provisions.
      So long
      as at least 75% of the aggregate number of shares of Series B Preferred Stock
      and Series C Preferred Stock issued on the Original Issue Date (appropriately
      adjusted to reflect stock splits, stock dividends, reorganizations,
      consolidations and similar changes with respect to the Series B Preferred Stock
      and the Series C Preferred Stock occurring after the Original Issue Date),
      are
      outstanding, the corporation shall not, without the vote or written consent
      by
      the holders of at least a majority of the aggregate number of outstanding shares
      of Series B Preferred Stock and Series C Preferred Stock authorize or issue,
      or
      obligate itself to issue, any other equity security senior to the Series B
      Preferred Stock or Series C Preferred Stock as to dividend or redemption rights,
      liquidation preferences, conversion rights, voting rights or otherwise, or
      create any obligation or security convertible into or exchangeable for, or
      having any option rights to purchase, any such equity security which is senior
      to the Series B Preferred Stock or Series C Preferred Stock. 

    

    7. Status
      of Converted Stock.
      In the
      event any shares of Series B Preferred
      Stock or Series C Preferred Stock shall be converted pursuant to Section 4
      hereof, the shares so converted shall be cancelled and shall not be reissuable
      by the corporation, but shall be returned to the status of undesignated shares
      of Preferred Stock.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the undersigned have executed this certificate. Each of the
      undersigned declares under penalty of perjury that the matters set forth in
      the
      foregoing certificate are true of his own knowledge. Executed at Riverside,
      California effective March 6, 2008.

    

    
      	 	
              By:

            	
                
                /s/ Dennis Shogren

            
	 	 	 	
              Dennis
                Shogren

            
	 	 	 	
              Chief
                Executive Officer

            
	 	 	 	 
	 	
              By:

            	
               
                /s/ Kenneth Cragun

            
	 	 	 	
              Kenneth
                Cragun

            
	 	 	 	
              Secretary

            

    

    

    
      
        
        

      

      
        8Exhibit
          4.2

         

      

      AMENDED
        AND RESTATED

      CERTIFICATE
        OF DESIGNATION OF

      PREFERENCES,
        RELATIVE, PARTICIPATING, OPTIONAL, AND OTHER SPECIAL

      RIGHTS,
        QUALIFICATIONS, LIMITATIONS AND RESTRICTIONS

      OF

      SERIES
        B
        PREFERRED STOCK

      AND
        SERIES C PREFERRED STOCK

      OF

      MODTECH
        HOLDINGS, INC.

      

      The
        undersigned, Dennis Shogren and Kenneth Cragun, certify that:

      

      ONE.
         They
        are
        the duly elected Chief Executive Officer and Secretary, respectively, of
        the
        above-named corporation.

      

      TWO.
         Pursuant
        to and in accordance with the provisions of Section 151 of the Delaware General
        Corporation Law and the Certificate of Incorporation of this corporation,
        the
        Board of Directors of this corporation has duly adopted the following recitals
        and resolutions.

      

      WHEREAS,
        the Certificate of Incorporation of this corporation provides for a class
        of its
        authorized shares known as Preferred Stock comprised of 5,000,000 shares
        issuable from time to time in one or more series; and

      

      WHEREAS,
        the Board of Directors of this corporation is authorized to fix the number
        of
        shares of any series of Preferred Stock and to determine the designation
        of any
        such series and the rights, preferences, privileges and restrictions granted
        to
        or imposed upon any wholly unissued series of Preferred Stock; and

      

      WHEREAS,
        the Board of Directors has previously fixed and determined the designation
        of,
        the number of shares constituting, and the rights, preferences, privileges
        and
        restrictions relating to a Series A Preferred Stock; and

       

      WHEREAS,
        pursuant to a Certificate of Designation filed with the Delaware Secretary
        of
        State on March 6, 2008, the Board of Directors of this corporation has
        previously established two additional classes of Preferred
        Stock, one designated as the "Series
        B
        Preferred Stock" and the other designated as “Series C Preferred
        Stock,”
        and
        fixed the
        number of shares in each class
        and the
        rights, preferences, privileges, restrictions and other matters
        relating
        thereto; and

      

      WHEREAS,
        the Board of Directors wishes to amend and restate the Certificate of
        Designation filed March 6, 2008 in its entirety; 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      NOW,
        THER.EFORE, BE IT RESOLVED, that a series consisting of
        50,000
        shares of Preferred
        Stock, $0.01 par value per share, is hereby established and designated
        as the
        "Series B Preferred Stock" of this corporation
        (the "Series
        B Preferred Stock"),
        and
        that the Series B Preferred Stock shall have the rights, preferences and
        privileges, and shall be subject to the restrictions, as are hereinafter
        set
        forth; and 

      

      RESOLVED
        FURTHER, that
        a
        series consisting of
        50,000
        shares of Preferred
        Stock, $0.01 par value per share, is hereby established and designated
        as the
        "Series C Preferred Stock" of this corporation
        (the "Series
        C Preferred Stock"),
        and
        that the Series C Preferred Stock shall have the rights, preferences and
        privileges, and shall be subject to the restrictions, as are hereinafter
        set
        forth:

      

      1.  Dividend
        Provisions.
        

      

      (a) Series
        B Dividends.
        The
        holders of outstanding Series B Preferred Stock shall be entitled to receive
        when, as and if declared by the Board of Directors, out of unissued shares
        of
        Series B Preferred Stock at the time legally available therefor, dividends,
        in
        whole and/or fractional shares of such Series B Preferred Stock, at the rate
        of
        Eight Percent (8%) per share of outstanding Series B Preferred Stock per
        annum.
        Dividends shall accrue on each share of Series B Preferred Stock from the
        date
        of its original 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 year at said rate per share per annum shall not have
        been paid or declared and set apart for all shares of Series B Preferred
        Stock
        at the time outstanding, the deficiency shall be fully paid on or declared
        and
        set apart for such shares before this corporation pays any dividend (except
        a
        dividend in shares of Common Stock) on Common Stock or any dividend on Series
        C
        Preferred Stock or on any Preferred Stock issued subsequent to the Series
        B
        Preferred Stock. Undeclared or unpaid dividends shall not bear or accrue
        interest. 

      

      (b) Series
        C Dividends.
        No
        dividend shall be declared or paid on the Common Stock of this corporation
        (other than in Common Stock of this corporation) or on any other series of
        Preferred Stock, except Series B Preferred Stock as provided above, unless
        prior
        to and in preference thereof a dividend of equal amount per share is declared
        and paid on the outstanding shares of the Series C Preferred Stock out of
        any
        assets legally available therefore. Unless and until declared, no dividends
        shall accrue on outstanding shares of Series C Preferred Stock.

      

      2. Liquidation
        Preference.

      

      (a) Series
        B Liquidation Preference.
        In the
        event of any voluntary or involuntary liquidation, dissolution or winding
        up of
        this corporation, the holders of each then outstanding share of Series B
        Preferred Stock shall be entitled to receive, prior and in preference to
        any
        distribution of the assets or surplus funds of this corporation to the holders
        of Common Stock, Series C Preferred Stock, or any series of Preferred Stock
        issued subsequent to the Series B Preferred Stock, an amount equal to One
        Hundred Dollars ($100.00) per share, (appropriately adjusted to reflect stock
        splits, stock dividends, reorganizations, consolidations and similar changes
        with respect to the Series B Preferred Stock occurring after the date of
        the first issuance of shares of the Series B Preferred Stock), plus all accrued
        but unpaid cumulative dividends on such share of Series B Preferred Stock
        (the
"Series
        B Liquidation Preference").
        The
        Series B Liquidation Preference shall be paid or set apart for payment before,
        in connection with any liquidation, dissolution or winding up of the
        corporation, the payment or setting apart for payment of any amount for,
        or the
        distribution of any assets of this corporation to, the holders of Series
        C
        Preferred Stock, Common Stock or any series of Preferred Stock issued subsequent
        to the Series B Preferred Stock. If the assets or surplus funds to be
        distributed to the holders of the Series B Preferred Stock are insufficient
        to
        permit the payment to such holders of the full Series B Liquidation Preference,
        then the entire assets and surplus funds of this corporation legally available
        for distribution shall be distributed ratably among the holders of the Series
        B
        Preferred Stock in proportion to the share of the Series B Liquidation
        Preference each such holder is otherwise entitled to receive in respect of
        the
        shares of Series B Preferred Stock then held by such holder.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      (b)
         Series
        C Liquidation Preference.
        In the
        event of any voluntary or involuntary liquidation, dissolution or winding
        up of
        this corporation and after the payment or setting apart for payment of the
        Series B Liquidation Preference, the holders of each then outstanding share
        of
        Series C Preferred Stock shall be entitled to receive, by reason of their
        ownership thereof, prior and in preference to any distribution of any of
        the
        assets of this corporation to the holders of the Common Stock or any series
        of
        Preferred Stock issued subsequent to the Series C Preferred Stock an amount
        equal to One Hundred Dollars ($100.00) per share (appropriately adjusted
        to
        reflect stock splits, stock dividends, reorganizations, consolidations and
        similar changes with respect to the Series C Preferred Stock occurring
        after the date of the first issuance of shares of the Series C Preferred
        Stock),
        plus any declared but unpaid dividends on such share of Series C Preferred
        Stock
        (the "Series
        C Liquidation Preference").
        The
        Series C Liquidation Preference shall be paid or set apart for payment before,
        in connection with any liquidation, dissolution or winding up of the
        corporation, the payment or setting apart for payment of any amount for,
        or the
        distribution of any assets of this corporation to, the holders of Common
        Stock
        or any series of Preferred Stock issued subsequent to the Series C Preferred
        Stock. If the remaining assets or surplus funds to be distributed to the
        holders
        of the Series C Preferred Stock are insufficient to permit the payment to
        such
        holders of the full Series C Liquidation Preference, then the entire remaining
        assets and surplus funds of this corporation legally available for distribution
        shall be distributed ratably among the holders of the Series C Preferred
        Stock
        in proportion to the share of the Series C Liquidation Preference each such
        holder is otherwise entitled to receive in respect of the shares of Series
        C
        Preferred Stock then held by such holder.

      

      (c)  Remaining
        Assets.
        After
        the payment or setting apart for payment in full of the Series B Liquidation
        Preference and the Series C Liquidation Preference, any remaining assets
        or
        surplus funds of this corporation shall be distributed to the holders of
        Series
        B Preferred Stock, the holders of Series C Preferred Stock and the holders
        of
        Common Stock, ratably on the basis of the number of shares of Common Stock
        then
        held by them and then issuable upon conversion of the Series B Preferred
        Stock
        and Series C Preferred Stock then held by them.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      3. Redemption.

      

      (a) Optional.
        Following the twentieth (20th)
        consecutive trading day on which the closing price of the Common Stock (or
        the
        closing bid price if there is no closing price) equals or exceeds Two Dollars
        ($2.00) per share on the exchange or market on which the Common Stock is
        then
        traded, this corporation may at any time thereafter to the extent it may
        lawfully do so, at the option of its Board of Directors, redeem in whole
        or in
        part (i) the Series B Preferred Stock by paying in cash therefor a sum equal
        to
        One Hundred Dollars ($100.00) per share of Series B Preferred Stock
        (appropriately adjusted to reflect stock splits, stock dividends,
        reorganizations, consolidations and similar changes with respect to the
        Series B Preferred Stock occurring after the date of the first issuance of
        shares of Series B Preferred), together with all accrued but unpaid dividends
        on
        such shares to the date of redemption (the "Series
        B Redemption Price")
        and
        (ii) the Series C Preferred Stock by paying in cash therefor a sum equal
        to One
        Hundred Dollars ($100.00) per share of Series C Preferred Stock (appropriately
        adjusted to reflect stock splits, stock dividends, reorganizations,
        consolidations and similar changes with respect to the Series C Preferred
        Stock
        occurring after the date of the first issuance of shares of Series C Preferred
        Stock), together with all declared but unpaid dividends on such shares to
        the
        date of redemption (the "Series
        C Redemption Price").
        Any
        redemption of Series B Preferred Stock and Series C Preferred Stock shall
        be pro
        rata among the outstanding shares of Series B Preferred Stock and Series
        C
        Preferred Stock based upon the number of shares held by each holder thereof.
        

      

      (b) Notice
        of Redemption.
        The
        corporation shall give written notice at least thirty (30) days prior to
        the
        redemption date, of its intention to redeem the Series B Preferred Stock
        and Series C Preferred Stock as provided herein, to each holder thereof,
        such
        notice to be addressed to each holder at the address of such holder as it
        appears on the stock transfer books of the corporation and to specify (i)
        the
        total number of shares of Series B Preferred Stock and Series C Preferred
        Stock being redeemed; (ii) the number of shares of Series B Preferred
        Stock and Series C Preferred Stock held by the holder which the corporation
        intends to redeem; (iii) the date of redemption, the Series B Redemption
        Price and the Series C Redemption Price; and (iv) the date on which the
        conversion rights with respect to such shares terminate in accordance with
        Section 4 below. On or after the date of redemption, each holder of
        Series B Preferred Stock and Series C Preferred Stock shall surrender his
        certificate for the number of shares to be redeemed as stated in the notice
        provided by the corporation (other than those shares properly converted pursuant
        to Section 4 below). If less than all the shares represented by such
        certificates are to be redeemed, the corporation shall forthwith issue a
        new
        certificate for the unredeemed shares.

      

      4. Conversion. 

      

      The
        holders of the Series B Preferred Stock and Series C Preferred Stock shall
        have
        conversion rights as follows:

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (a) Optional
        Conversion into Common Stock.
        Each
        share of Series B Preferred Stock and Series C 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 fifth day prior to the redemption
        date for such share fixed by a redemption notice in accordance with
        Section 3 above, at the office of the corporation or any transfer agent for
        such stock, into such number of fully paid and nonassessable shares of Common
        Stock as is determined by, in the case of Series B Preferred Stock, dividing
        One
        Hundred Dollars ($100.00), plus accrued but unpaid dividends on the Series
        B
        Preferred Stock by the "Series
        B Conversion Price"
        in
        effect at the time and, in the case of Series C Preferred Stock, dividing
        One
        Hundred Dollars ($100.00), plus declared but unpaid dividends on the Series
        C
        Preferred Stock by the "Series
        C Conversion Price"
        in
        effect at the time. The initial Series B Conversion Price per share is Forty
        Cents ($0.40) and the initial Series C Conversion Price per share is Forty-Nine
        Cents ($0.49); provided, however, that the Series B Conversion Price and
        the
        Series C Conversion Price shall be subject to adjustment as set forth in
        subsection 4(c). 

      

      (b)
        Mechanics
        of Conversion from Preferred Stock to Common Stock.
        No
        fractional shares of Common Stock shall be issued upon conversion of Series
        B
        Preferred Stock or Series C Preferred Stock. In lieu of any fractional shares
        to
        which the holder would otherwise be entitled, the corporation shall pay cash
        equal to such fraction multiplied by the then effective Series B Conversion
        Price or Series C Conversion Price, as applicable. Before any holder of Series
        B
        Preferred Stock or Series C Preferred Stock shall be entitled to convert
        the
        same into shares of Common Stock pursuant to Section 4(a) hereof, 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
        or
        Series C Preferred Stock, and shall give written notice to the corporation
        at
        such office that he elects to convert the same and shall state therein his
        name
        or the name or names of his nominees in which he wishes the certificate or
        certificates for shares of Common Stock 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 Series C Preferred Stock, or to his nominee
        or
        nominees, a certificate or certificates for the number of shares of Common
        Stock
        to which he shall be entitled as aforesaid, together with cash in lieu of
        any
        fraction of a share. 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 Preferred Stock to be converted, and the person or persons entitled
        to
        receive the shares of Common Stock issuable upon conversion shall be treated
        for
        all purposes as the record holder or holders of such shares of Common Stock
        on
        such date.

      

      (c) Adjustment
        in Conversion Price. 

      

      (i) Combinations
        or Subdivisions.
        If the
        corporation at any time or from time to time after the date of the first
        issuance of shares of the Series B Preferred Stock and Series C Preferred
        Stock
        ( the “Original
        Issue Date”)
        declares or pays any dividend on its Common Stock payable in Common Stock
        or in
        any right to acquire Common Stock, or effects a subdivision of the outstanding
        shares of Common Stock into a greater number of shares of Common Stock (by
        stock
        split, reclassification or otherwise), or if the outstanding shares of Common
        Stock is combined or consolidated, by reclassification or otherwise, into
        a
        lesser number of shares of Common Stock, then the Series B Conversion Price
        and
        Series C Conversion Price in effect immediately prior to such event shall,
        concurrently with the effectiveness of such event, be proportionately decreased
        or increased, as appropriate.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      (ii)
         Reorganization;
        Recapitalization.
        If at
        any time or from time to time there shall be a reclassification or
        recapitalization of the capital stock of the corporation (other than a
        subdivision, reclassification, stock split or combination provided for elsewhere
        in this Section 4), any consolidation, merger, or reorganization of the
        corporation with or into another entity or entities, or the conveyance of
        all or
        substantially all of the assets of the corporation to another entity, each
        share
        of Series B Preferred Stock and Series C Preferred Stock shall thereafter
        be
        convertible into the number of shares of stock or other securities or property
        (including cash) to which to which a holder of the number of shares of Common
        Stock deliverable upon conversion of such shares would have been entitled
        on
        such reclassification, recapitalization, consolidation, merger, reorganization
        or conveyance. 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 B Preferred Stock and Series C Preferred Stock
        after
        the reclassification, recapitalization, consolidation, merger, reorganization
        or
        conveyance to the end that the provisions of this Section 4 (including
        adjustment of the Series B Conversion Price and Series C Conversion Price
        then
        in effect and the number of shares to be issued upon conversion of the Series
        B
        Preferred Stock and Series C Preferred Stock) shall be applicable after that
        event as nearly equivalent as may be practicable.

      

      (iii) Issuance
        of Additional Securities; Other Adjustments.
        Except
        as otherwise provided in this Section 4(c), the Series B Conversion Price
        and
        the Series C Conversion Price will not be adjusted upward or downward because
        of
        the issuance of additional securities after the Original Issue
        Date.

      

      (d) No
        Impairment. This
        corporation will not, by amendment of its Certificate of
        Incorporation, or through 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 the 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 and Series C Stock, respectively, against impairment.

      

      (e) Certificate
        as to Adjustments
        Upon the
        occurrence of each adjustment or readjustment
        of the Series B Conversion Price and Series C Conversion Price pursuant to
        this
        Section 4, this 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
        and each holder of Series C Preferred Stock a certificate setting
        forth such adjustment or readjustment and showing in detail the facts upon
        which
        such adjustment
        or readjustment is based. This corporation shall, upon the written request
        at
        any time of any holder of Series B Preferred Stock or Series C 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 such series
        of 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 and Series
        C
        Preferred Stock.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      (f)
         Reservation
        of Stock Issuable Upon Conversion.
        This
        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 and Series C Preferred Stock, such
        number
        of its shares of Common Stock as shall from time to time be sufficient to
        effect
        the conversion of all then outstanding shares of the Series B Preferred Stock
        and Series C Preferred Stock.

      

      (g)
         Notices.
        Any
        notice required by the provisions of this Section 4 to be given to the holders
        of shares of Series B Preferred Stock or Series C 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
        and the
        shares of this corporation.

       

      5.
         
        Voting Rights.
        Except
        as otherwise required by law and the provisions of this Section 5, the
        holders of Series B Preferred Stock and Series C Preferred Stock shall be
        entitled to notice of any stockholders' meeting in accordance with the Bylaws
        of
        the Corporation and to vote together with the holders of Common Stock as
        a
        single class of capital stock upon any matter submitted to stockholders for
        a
        vote. Holders of Series B Preferred Stock and Series C Preferred Stock
        shall have that number of votes per share equal to the number of shares of
        Common Stock into which each such share of each such series of Preferred
        Stock
        held by such holder is convertible at the record date for the determination
        of
        the stockholders entitled to vote on such matters or, if no such record date
        is
        established, at the date such vote is taken or any written consent of
        stockholders is solicited. Fractional votes shall not, however, be permitted
        and
        any fractional voting rights resulting from the foregoing formula (after
        aggregating all shares into which shares of Series B Preferred Stock and
        Series
        C Preferred Stock held by each holder could be converted) shall be rounded
        to
        the nearest whole number (with one-half being rounded upward). 

      

      6.
          Protective
        Provisions.
        So long
        as at least 75% of the aggregate number of shares of Series B Preferred Stock
        and Series C Preferred Stock issued on the Original Issue Date (appropriately
        adjusted to reflect stock splits, stock dividends, reorganizations,
        consolidations and similar changes with respect to the Series B Preferred
        Stock
        and the Series C Preferred Stock occurring after the Original Issue Date),
        are
        outstanding, the corporation shall not, without the vote or written consent
        by
        the holders of at least a majority of the aggregate number of outstanding
        shares
        of Series B Preferred Stock and Series C Preferred Stock authorize or issue,
        or
        obligate itself to issue, any other equity security senior to the Series
        B
        Preferred Stock or Series C Preferred Stock as to dividend or redemption
        rights,
        liquidation preferences, conversion rights, voting rights or otherwise, or
        create any obligation or security convertible into or exchangeable for, or
        having any option rights to purchase, any such equity security which is senior
        to the Series B Preferred Stock or Series C Preferred Stock. 

      

      7. Status
        of Converted Stock.
        In the
        event any shares of Series B Preferred
        Stock or Series C Preferred Stock shall be converted pursuant to Section
        4
        hereof, the shares so converted shall be cancelled and shall not be reissuable
        by the corporation, but shall be returned to the status of undesignated shares
        of Preferred Stock.

      
         

        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF, the undersigned have executed this certificate. Each of
        the
        undersigned declares under penalty of perjury that the matters set forth
        in the
        foregoing certificate are true of his own knowledge. Executed at Riverside,
        California effective March 10, 2008.

      

      
        	
                By:

              	
                /s/Dennis
                  Shogren

              
	 	
                 Dennis
                  Shogren

              
	 	
                 Chief
                  Executive Officer

              
	 	 
	
                By:

              	
                /s/
                  Kenneth Cragun

              
	 	
                 Kenneth
                  Cragun

              
	 	
                 Secretary

              

      

      

      
        
          
          

        

        
          8

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