Document:

Unassociated Document

    CERTIFICATE
      OF DESIGNATIONS, PREFERENCES AND RIGHTS OF

    SERIES
      C
      PREFERRED STOCK

    OF

    GLOWPOINT,
      INC.

     

    The
      undersigned, the Chief Executive Officer and President of Glowpoint, Inc.,
      a
      Delaware corporation (the "Company"), in accordance with the provisions of
      the
      Delaware General Corporation Law, does hereby certify that, pursuant to the
      authority conferred upon the Board of Directors by the Amended and Restated
      Certificate of Incorporation of the Company, the following resolution creating
      a
      series of Series C Convertible Preferred Stock, was duly adopted on September
      18, 2007.

     

    RESOLVED,
      that pursuant to the authority expressly granted to and vested in the Board
      of
      Directors of the Company by provisions of the Amended and Restated Certificate
      of Incorporation of the Company (the "Certificate of Incorporation"), there
      hereby is created out of the shares of Preferred Stock, par value $.0001 per
      share, of the Company authorized in Article IV of the Certificate of
      Incorporation (the "Preferred Stock"), a series of Preferred Stock of the
      Company, to be named "Series C Convertible Preferred Stock,” consisting of One
      Thousand Five Hundred (1,500) shares, which series shall have the following
      designations, powers, preferences and relative and other special rights and
      the
      following qualifications, limitations and restrictions:

     

    1. Designation
      and Rank.
      The
      designation of such series of the Preferred Stock shall be the Series C
      Convertible Preferred Stock, par value $.0001 per share (the "Series C Preferred
      Stock"). The maximum number of shares of Series C Preferred Stock shall be
      One
      Thousand Five Hundred (1,500) shares. The Series C Preferred Stock shall rank
      prior to the common stock, par value $.0001 per share (the "Common Stock"),
      and
      to all other classes and series of equity securities of the Company which by
      their terms rank junior to the Series C Preferred Stock ("Junior Stock").
      Subject to Section 3(a), the Series C Preferred Stock shall be subordinate
      to
      and rank junior to all indebtedness of the Company now or hereafter
      outstanding.

     

    2. Dividends.
      No
      dividends shall accrue or be payable on any shares of Series C Preferred
      Stock.

     

    3. Voting
      Rights.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a) Class
      Voting Rights.
      So long
      as shares of the Series C Preferred Stock with a value of at least $2 million
      remain outstanding, the Company shall not, without the affirmative vote or
      consent of the holders of at least 75% of the shares of the Series C Preferred
      Stock outstanding at the time, given in person or by proxy, either in writing
      or
      at a meeting, in which the holders of the Series C Preferred Stock vote
      separately as a class, (i) authorize, create, issue or increase the authorized
      or issued amount of any class of debt or equity securities, ranking pari passu
      or senior to the Series C Preferred Stock, with respect to the distribution
      of
      assets on liquidation, dissolution or winding up; (ii) amend, alter or repeal
      the provisions of the Series C Preferred Stock, whether by merger, consolidation
      or otherwise, so as to adversely affect any right, preference, privilege or
      voting power of the Series C Preferred Stock; provided,
      however,
      that
      any creation and issuance of another series of Junior Stock shall not be deemed
      to adversely affect such rights, preferences, privileges or voting powers;
      (iii)
      repurchase, redeem or pay dividends on, shares of Common Stock or any other
      shares of the Company's Junior Stock (other than (1) in connection with any
      employee stock option plan or employee stock purchase plan which is approved
      by
      the Board of Directors and is existing as of the date hereof, (2) de minimus
      repurchases from employees of the Company, and (3) any contractual redemption
      obligations existing as of the date hereof as disclosed in the Company’s public
      filings with the Securities and Exchange Commission); (iv) amend the Certificate
      of Incorporation or By-Laws of the Company so as to affect materially and
      adversely any right, preference, privilege or voting power of the Series C
      Preferred Stock; provided,
      however,
      that
      any creation and issuance of another series of Junior Stock shall not be deemed
      to adversely affect such rights, preferences, privileges or voting powers;
      (v)
      effect any distribution with respect to Junior Stock other than as permitted
      hereby; (vi) reclassify the Company's outstanding securities; or (vii)
      materially change the nature of the Company’s business. Notwithstanding the
      foregoing to the contrary, the Company may (i) issue the Notes and the Warrants
      (each as defined below); (ii) obtain and utilize a credit facility any banking
      institution on terms that are no less favorable to the Company than the terms
      of
      the credit facility it had with JPMorgan Chase Bank; and (iii) obtain and
      utilize any line of credit, factoring arrangement or other similar financing
      arrangement in connection with servicing the Company’s receivables in an amount
      up to $1,000,000.

     

     

    (b) General
      Voting Rights.
      Except
      with respect to transactions upon which the Series C Preferred Stock shall
      be
      entitled to vote separately as a class pursuant to Section 3(a) above and
      Section 10 below, and except as otherwise required by Delaware law, the Series
      C
      Preferred Stock shall have no voting rights. The Common Stock into which the
      Series C Preferred Stock is convertible shall, upon issuance, have all of the
      same voting rights as other issued and outstanding Common Stock of the
      Company.

     

    4. Liquidation,
      Dissolution; Winding-Up.

     

    (a) In
      the
      event of the liquidation, dissolution or winding up of the affairs of the
      Company, whether voluntary or involuntary, the holders of shares of the Series
      C
      Preferred Stock then outstanding shall be entitled to receive, out of the assets
      of the Company available for distribution to its stockholders, an amount equal
      to $10,000 per share (the "Liquidation Preference Amount") before any payment
      shall be made or any assets distributed to the holders of the Common Stock
      or
      any other Junior Stock. If the assets of the Company are not sufficient to
      pay
      in full the Liquidation Preference Amount payable to the holders of outstanding
      shares of the Series C Preferred Stock and any series of preferred stock or
      any
      other class of stock on a parity, as to rights on liquidation, dissolution
      or
      winding up, with the Series C Preferred Stock, then all of said assets will
      be
      distributed among the holders of the Series C Preferred Stock and the other
      classes of stock on a parity with the Series C Preferred Stock, if any, ratably
      in accordance with the respective amounts that would be payable on such shares
      if all amounts payable thereon were paid in full. The liquidation payment with
      respect to each outstanding fractional share of Series C Preferred Stock shall
      be equal to a ratably proportionate amount of the liquidation payment with
      respect to each outstanding share of Series C Preferred Stock. All payments
      for
      which this Section 4(a) provides shall be in cash, property (valued at its
      fair
      market value as determined reasonably and in good faith by the Board of
      Directors of the Company) or a combination thereof; provided, however, that
      no
      cash shall be paid to holders of Junior Stock unless each holder of the
      outstanding shares of Series C Preferred Stock has been paid in cash the full
      Liquidation Preference Amount to which such holder is entitled as provided
      herein. After payment of the full Liquidation Preference Amount to which each
      holder is entitled, such holders of shares of Series C Preferred Stock will
      not
      be entitled to any further participation as such in any distribution of the
      assets of the Company.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (b) A
      consolidation or merger of the Company with or into any other corporation or
      corporations, or a sale of all or substantially all of the assets of the
      Company, or the effectuation by the Company of a transaction or series of
      related transactions in which more than 50% of the voting shares of the Company
      is disposed of or conveyed, shall not be deemed to be a liquidation,
      dissolution, or winding up within the meaning of this Section 4. In the event
      of
      the merger or consolidation of the Company with or into another corporation,
      subject to Section 5(e)(v), the Series C Preferred Stock shall maintain its
      relative powers, designations and preferences provided for herein and no merger
      shall result inconsistent therewith.

     

    (c) Written
      notice of any voluntary or involuntary liquidation, dissolution or winding
      up of
      the affairs of the Company, stating a payment date and the place where the
      distributable amounts shall be payable, shall, to the extent possible, be given
      by mail, postage prepaid, no less than twenty (20) days prior to the payment
      date stated therein, to the holders of record of the Series C Preferred Stock
      at
      their respective addresses as the same shall appear on the books of the
      Company.

     

    5. Conversion.
      The
      holder of Series C Preferred Stock shall have the following conversion rights
      (the "Conversion Rights"):

     

    (a) Right
      to Convert.
      At any
      time on or after the date of issuance of the Series C Preferred Stock (the
      “Issuance Date”), the holder of any shares of Series C Preferred Stock may, at
      such holder's option, subject to the limitations set forth in Section 7 herein,
      elect to convert (a "Voluntary Conversion") all or any portion of the shares
      of
      Series C Preferred Stock held by such person into a number of fully paid and
      nonassessable shares of Common Stock equal to the quotient of (i) the
      Liquidation Preference Amount of the shares of Series C Preferred Stock being
      converted divided by (ii) the Conversion Price (as defined in Section 5(d)
      below) then in effect as of the date of the delivery by such holder of its
      notice of election to convert. In the event of a notice of redemption of any
      shares of Series C Preferred Stock pursuant to Section 8 hereof, the Conversion
      Rights of the shares designated for redemption shall terminate at the close
      of
      business on the last full day preceding the date fixed for redemption, unless
      the redemption price is not paid on such redemption date, in which case the
      Conversion Rights for such shares shall continue until such price is paid in
      full. In the event of a liquidation, dissolution or winding up of the Company,
      the Conversion Rights shall terminate at the close of business on the last
      full
      day preceding the date fixed for the payment of any such amounts distributable
      on such event to the holders of Series C Preferred Stock. In the event of such
      a
      redemption or liquidation, dissolution or winding up, the Company shall provide
      to each holder of shares of Series C Preferred Stock notice of such redemption
      or liquidation, dissolution or winding up, which notice shall (i) be sent at
      least fifteen (15) days prior to the termination of the Conversion Rights and
      (ii) state the amount per share of Series C Preferred Stock that will be paid
      or
      distributed on such redemption or liquidation, dissolution or winding up, as
      the
      case may be.

     

    (b) Mechanics
      of Voluntary Conversion.
      The
      Voluntary Conversion of Series C Preferred Stock shall be conducted in the
      following manner:

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (i) Holder's
      Delivery Requirements.
      To
      convert Series C Preferred Stock into full shares of Common Stock on any date
      (the "Voluntary Conversion Date"), the holder thereof shall (A) transmit by
      facsimile (or otherwise deliver), for receipt on or prior to 5:00 p.m., New
      York
      time on such date, a copy of a fully executed notice of conversion in the form
      attached hereto as Exhibit I (the "Conversion Notice"), to the Company; and
      (B)
      as soon as practicable following such Voluntary Conversion Date, surrender
      to a
      common carrier for delivery to the Company the original certificates
      representing the shares of Series C Preferred Stock being converted (or an
      indemnification undertaking with respect to such shares in the case of their
      loss, theft or destruction) (the "Preferred Stock Certificates") and the
      originally executed Conversion Notice.

     

    (ii) Company's
      Response.
      Upon
      receipt by the Company of a copy of the fully executed Conversion Notice, the
      Company or its designated transfer agent (the "Transfer Agent"), as applicable,
      shall within three (3) business days following the date of receipt by the
      Company of a copy of the fully executed Conversion Notice, issue and deliver
      to
      the Depository Trust Company ("DTC") account on the holder's behalf via the
      Deposit Withdrawal Agent Commission System ("DWAC") as specified in the
      Conversion Notice, registered in the name of the holder or its designee, for
      the
      number of shares of Common Stock to which the holder shall be entitled.
      Notwithstanding the foregoing to the contrary, the Company or its Transfer
      Agent
      shall only be required to issue and deliver the shares to the DTC on a holder's
      behalf via DWAC if (i) such conversion is in connection with a sale, (ii) the
      shares of Common Stock may be issued without restrictive legends and (iii)
      the
      Company and the Transfer Agent are participating in DTC through the DWAC
      system.
      If all
      of the conditions set forth in clauses (i), (ii) and (iii) above are not
      satisfied, the Company shall deliver physical certificates to the holder or
      its
      designee. If the number of shares of Preferred Stock represented by the
      Preferred Stock Certificate(s) submitted for conversion is greater than the
      number of shares of Series C Preferred Stock being converted, then the Company
      shall, as soon as practicable and in no event later than three (3) business
      days
      after receipt of the Preferred Stock Certificate(s) and at the Company's
      expense, issue and deliver to the holder a new Preferred Stock Certificate
      representing the number of shares of Series C Preferred Stock not
      converted.

     

    (iii) Dispute
      Resolution.
      In the
      case of a dispute as to the arithmetic calculation of the number of shares
      of
      Common Stock to be issued upon conversion, the Company shall cause its Transfer
      Agent to promptly issue to the holder the number of shares of Common Stock
      that
      is not disputed and shall submit the arithmetic calculations to the holder
      via
      facsimile as soon as possible, but in no event later than two (2) business
      days
      after receipt of such holder's Conversion Notice. If such holder and the Company
      are unable to agree upon the arithmetic calculation of the number of shares
      of
      Common Stock to be issued upon such conversion within two (2) business days
      of
      such disputed arithmetic calculation being submitted to the holder, then the
      Company shall within two (2) business days submit via facsimile the disputed
      arithmetic calculation of the number of shares of Common Stock to be issued
      upon
      such conversion to the Company's independent, outside accountant (the
      "Accountant"). The Company shall cause the Accountant to perform the
      calculations and notify the Company and the holder of the results no later
      than
      five (5) business days from the time it receives the disputed calculations.
      The
      Accountant's calculation shall be binding upon all parties absent manifest
      error. The reasonable expenses of such Accountant in making such determination
      shall be paid by the Company, in the event the holder's calculation was correct,
      or by the holder, in the event the Company's calculation was correct, or equally
      by the Company and the holder in the event that neither the Company's or the
      holder's calculation was correct. The period of time in which the Company is
      required to effect conversions or redemptions under this Certificate of
      Designations shall be tolled with respect to the subject conversion or
      redemption pending resolution of any dispute by the Company made in good faith
      and in accordance with this Section 5(b)(iii).

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (iv) Record
      Holder.
      The
      person or persons entitled to receive the shares of Common Stock issuable upon
      a
      conversion of the Series C Preferred Stock shall be treated for all purposes
      as
      the record holder or holders of such shares of Common Stock on the Conversion
      Date.

     

    (v) Company's
      Failure to Timely Convert.
      If
      within five (5) business days of the Company's receipt of an executed copy
      of
      the Conversion Notice (so long as the applicable Preferred Stock Certificates
      and original Conversion Notice are received by the Company on or before such
      third business day), the Transfer Agent shall fail to issue and deliver to
      a
      holder the number of shares of Common Stock to which such holder is entitled
      upon such holder's conversion of the Series C Preferred Stock or to issue a
      new
      Preferred Stock Certificate representing the number of shares of Series C
      Preferred Stock to which such holder is entitled pursuant to Section 5(b)(ii)
      (a
      "Conversion Failure"), in addition to all other available remedies which such
      holder may pursue hereunder and under any other agreements entered into in
      connection with the issuance of the Series C Preferred Stock (including any
      indemnification provisions contained therein), the Company shall pay additional
      damages to such holder on each business week after such fifth (5th) business
      day
      that such conversion is not timely effected (so long as the applicable Preferred
      Stock Certificates and original Conversion Notice are received by the Company
      on
      or before such fifth business day) in an amount equal 0.5% of the product of
      (A)
      the sum of the number of shares of Common Stock not issued to the holder on
      a
      timely basis pursuant to Section 5(b)(ii) and to which such holder is entitled
      and, in the event the Company has failed to deliver a Preferred Stock
      Certificate to the holder on a timely basis pursuant to Section 5(b)(ii), the
      number of shares of Common Stock issuable upon conversion of the shares of
      Series C Preferred Stock represented by such Preferred Stock Certificate, as
      of
      the last possible date which the Company could have issued such Preferred Stock
      Certificate to such holder without violating Section 5(b)(ii) and (B) the
      Closing Bid and Ask Price (as defined below) of the Common Stock on the last
      possible date which the Company could have issued such Common Stock and such
      Preferred Stock Certificate, as the case may be, to such holder without
      violating Section 5(b)(ii). If the Company fails to pay the additional damages
      set forth in this Section 5(b)(v) within seven (7) business days of the date
      incurred, then such payment shall bear interest at the rate of 1.0% per month
      (pro rated for partial months) until such payments are made. 

     

    (vi) Buy-In
      Rights.
      In
      addition to any other rights available to the holders of Series C Preferred
      Stock, if within three (3) business days of the Company's receipt of an executed
      copy of the Conversion Notice (so long as the applicable Preferred Stock
      Certificates and original Conversion Notice are received by the Company on
      or
      before such third business day), the Transfer Agent shall fail to issue and
      deliver to a holder the number of shares of Common Stock to which such holder
      is
      entitled upon such holder's conversion of the Series C Preferred Stock (a
      "Conversion Failure"), and if after such date the holder is required by its
      broker to purchase (in an open market transaction or otherwise) shares of Common
      Stock to deliver in satisfaction of a sale by the holder of the shares of Common
      Stock issuable upon conversion of Series C Preferred Stock which the holder
      anticipated receiving upon such conversion (a “Buy-In”), then the Company shall
      (1) pay in cash to the holder the amount by which (x) the holder’s total
      purchase price (including brokerage commissions, if any) for the shares of
      Common Stock so purchased exceeds (y) the amount obtained by multiplying (A)
      the
      number of shares of Common Stock issuable upon conversion of Series C Preferred
      Stock that the Company was required to deliver to the holder in connection
      with
      the conversion at issue times (B) the price at which the sell order giving
      rise
      to such purchase obligation was executed, and (2) deliver to the holder the
      number of shares of Common Stock that would have been issued had the Company
      timely complied with its conversion and delivery obligations hereunder. For
      example, if the holder purchases Common Stock having a total purchase price
      of
      $11,000 to cover a Buy-In with respect to an attempted conversion of shares
      of
      Common Stock with an aggregate sale price giving rise to such purchase
      obligation of $10,000, under clause (1) of the immediately preceding sentence
      the Company shall be required to pay to the holder $1,000. The holder shall
      provide the Company written notice indicating the amounts payable to the holder
      in respect of the Buy-In, together with applicable confirmations and other
      evidence reasonably requested by the Company. Nothing herein shall limit a
      holder’s right to pursue any other remedies available to it hereunder, at law or
      in equity including, without limitation, a decree of specific performance and/or
      injunctive relief with respect to the Company’s failure to timely deliver
      certificates representing shares of Common Stock upon conversion of the Series
      C
      Preferred Stock as required pursuant to the terms hereof.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (c) Mandatory
      Conversion.

     

    (i) Each
      share of Series C Preferred Stock outstanding on the Mandatory Conversion Date
      (as defined below) shall, automatically and without any action on the part
      of
      the holder thereof, convert into a number of fully paid and nonassessable shares
      of Common Stock equal to the quotient of (i) the Liquidation Preference Amount
      of the shares of Series C Preferred Stock outstanding on the Mandatory
      Conversion Date divided by (ii) the Conversion Price in effect on the Mandatory
      Conversion Date.

     

    (ii) As
      used
      herein, "Mandatory Conversion Date" shall be the first date that the Closing
      Bid
      and Ask Price (as defined below) of the Common Stock exceeds $2.00 (as adjusted
      for stock splits, stock dividends, combinations and similar transactions) for
      a
      period of ten (10) consecutive trading days; provided that a registration
      statement covering the resale of the shares of Common Stock issuable upon
      conversion of the Series C Preferred Stock is effective on the Mandatory
      Conversion Date and on each trading day of such ten (10) trading day period
      or
      the shares of Common Stock into which the Series C Preferred Stock can be
      converted may be offered for sale to the public pursuant to Rule 144(k) under
      the Securities Act of 1933, as amended. If on the Mandatory Conversion Date,
      a
      holder is prohibited from converting all of its shares of Series C Preferred
      Stock as a result of the restrictions contained in Section 7 of this Certificate
      of Designations, such shares of Series C Preferred Stock shall be exchanged
      for
      shares of a new series of preferred stock with preferences, rights and
      limitations substantially similar to those of the Series C Preferred Stock.
      The
      Mandatory Conversion Date and the Voluntary Conversion Date collectively are
      referred to in this Certificate of Designations as the "Conversion Date."
      Notwithstanding the foregoing to the contrary, the Company may effect a
      mandatory conversion pursuant to this Section 5(c) only if (A) a
      registration
      statement providing for the resale of the shares of Common Stock issuable upon
      conversion of the Series C Preferred Stock is then in effect, (B) trading
      in the Common Stock shall not have been suspended by the
      Securities and Exchange Commission or the OTC Bulletin Board (or other exchange
      or market on which the Common Stock is trading),
      and (C)
      the Company is in material compliance with the terms and conditions of this
      Certificate of Designations, that certain Registration Rights Agreement, dated
      as of March 31, 2006, between the Company and the purchasers set forth therein,
      as amended, and that certain Exchange Agreement, dated as of September 21,
      2007,
      by and between the Company and the purchasers set forth therein (collectively,
      the Transaction Documents”).
      

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (iii) The
      term
      "Closing Bid and Ask Price" shall mean, for any security as of any date, the
      last average of the closing bid and ask price of such security on the OTC
      Bulletin Board or other principal exchange on which such security is traded
      as
      reported by Bloomberg, or, if no closing bid price is reported for such security
      by Bloomberg, the last closing trade price of such security as reported by
      Bloomberg, or, if no last closing trade price is reported for such security
      by
      Bloomberg, the average of the bid and ask prices of any market makers for such
      security as reported in the "pink sheets" by the National Quotation Bureau,
      Inc.
      If the Closing Bid and Ask Price cannot be calculated for such security on
      such
      date on any of the foregoing bases, the Closing Bid and Ask Price of such
      security on such date shall be the fair market value as determined in good
      faith
      by the Board of Directors of the Company.

     

    (iv) On
      the
      Mandatory Conversion Date, the outstanding shares of Series C Preferred Stock
      shall be converted automatically without any further action by the holders
      of
      such shares and whether or not the certificates representing such shares are
      surrendered to the Company or its Transfer Agent; provided, however, that the
      Company shall not be obligated to issue the shares of Common Stock issuable
      upon
      conversion of any shares of Series C Preferred Stock unless certificates
      evidencing such shares of Series C Preferred Stock are either delivered to
      the
      Company or the holder notifies the Company that such certificates have been
      lost, stolen, or destroyed, and executes an agreement satisfactory to the
      Company to indemnify the Company from any loss incurred by it in connection
      therewith. Upon the occurrence of the automatic conversion of the Series C
      Preferred Stock pursuant to this Section 5, the holders of the Series C
      Preferred Stock shall surrender the certificates representing the Series C
      Preferred Stock for which the Mandatory Conversion Date has occurred to the
      Company and the Company shall cause its Transfer Agent to deliver the shares
      of
      Common Stock issuable upon such conversion (in the same manner set forth in
      Section 5(b)(ii)) to the holder promptly following the holder's delivery of
      the
      applicable Preferred Stock Certificates.

     

    (d) Conversion
      Price.

     

    (i) The
      term
      "Conversion Price" shall mean $1.00 per share, subject to adjustment under
      Section 5(e) hereof.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (ii) Notwithstanding
      the foregoing to the contrary, if during any period (a "Black-out Period"),
      a
      holder of Series C Preferred Stock is unable to trade any Common Stock issued
      or
      issuable upon conversion of the Series C Preferred Stock immediately due to
      the
      postponement of filing or delay or suspension of effectiveness of a registration
      statement or because the Company has otherwise informed such holder of Series
      C
      Preferred Stock that an existing prospectus cannot be used at that time in
      the
      sale or transfer of such Common Stock (provided that such postponement, delay,
      suspension or fact that the prospectus cannot be used is not due to factors
      solely within the control of the holder of Series C Preferred Stock or due
      to
      the Company exercising its rights under Section 3(n) of (A) the Registration
      Rights Agreement, dated as of March 31, 2006, between the Company and the
      purchasers set forth therein, (B) the Registration Rights Agreement, dated
      as of
      February 17, 2004, between the Company and the purchasers set forth therein,
      or
      (C) the Registration Rights Agreement, dated as of December 17, 2002, between
      the Company and the purchasers set forth therein (each of the foregoing as
      may
      be amended from time to time (a "Registration Rights Agreement")), such holder
      of Series C Preferred Stock shall have the option but not the obligation on
      any
      Conversion Date within ten (10) trading days following the expiration of the
      Black-out Period of using the Conversion Price applicable on such Conversion
      Date or any Conversion Price selected by such holder of Series C Preferred
      Stock
      that would have been applicable had such Conversion Date been at any earlier
      time during the Black-out Period.

     

    (e) Adjustments
      of Conversion Price.

     

    (i) Adjustments
      for Stock Splits and Combinations.
      If the
      Company shall at any time or from time to time after the Issuance Date, effect
      a
      stock split of the outstanding Common Stock, the Conversion Price shall be
      proportionately decreased. If the Company shall at any time or from time to
      time
      after the Issuance Date, combine the outstanding shares of Common Stock, the
      Conversion Price shall be proportionately increased. Any adjustments under
      this
      Section 5(e)(i) shall be effective at the close of business on the date the
      stock split or combination becomes effective.

     

    (ii) Adjustments
      for Certain Dividends and Distributions.
      If the
      Company shall at any time or from time to time after the Issuance Date, make
      or
      issue or set a record date for the determination of holders of Common Stock
      entitled to receive a dividend or other distribution payable in shares of Common
      Stock, then, and in each event, the Conversion Price shall be decreased as
      of
      the time of such issuance or, in the event such record date shall have been
      fixed, as of the close of business on such record date, by multiplying the
      Conversion Price then in effect by a fraction:

     

    (1) the
      numerator of which shall be the total number of shares of Common Stock issued
      and outstanding immediately prior to the time of such issuance or the close
      of
      business on such record date; and

     

    (2) the
      denominator of which shall be the total number of shares of Common Stock issued
      and outstanding immediately prior to the time of such issuance or the close
      of
      business on such record date plus the number of shares of Common Stock issuable
      in payment of such dividend or distribution;

     

    provided,
      however, that no such adjustment shall be made if the holders of Series C
      Preferred Stock simultaneously receive (i) a dividend or other distribution
      of
      shares of Common Stock in a number equal to the number of shares of Common
      Stock
      as they would have received if all outstanding shares of Series C Preferred
      Stock had been converted into Common Stock on the date of such event or (ii)
      a
      dividend or other distribution of shares of Series C Preferred Stock which
      are
      convertible, as of the date of such event, into such number of shares of Common
      Stock as is equal to the number of additional shares of Common Stock being
      issued with respect to each share of Common Stock in such dividend or
      distribution.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (iii) Adjustment
      for Other Dividends and Distributions.
      If the
      Company shall at any time or from time to time after the Issuance Date, make
      or
      issue or set a record date for the determination of holders of Common Stock
      entitled to receive a dividend or other distribution payable in securities
      of
      the Company other than shares of Common Stock, then, and in each event, an
      appropriate revision to the applicable Conversion Price shall be made and
      provision shall be made (by adjustments of the Conversion Price or otherwise)
      so
      that the holders of Series C Preferred Stock shall receive upon conversions
      thereof, in addition to the number of shares of Common Stock receivable thereon,
      the number of securities of the Company which they would have received had
      their
      Series C Preferred Stock been converted into Common Stock on the date of such
      event and had thereafter, during the period from the date of such event to
      and
      including the Conversion Date, retained such securities (together with any
      distributions payable thereon during such period), giving application to all
      adjustments called for during such period under this Section 5(e)(iii) with
      respect to the rights of the holders of the Series C Preferred Stock; provided,
      however, that if such record date shall have been fixed and such dividend is
      not
      fully paid or if such distribution is not fully made on the date fixed therefor,
      the Conversion Price shall be adjusted pursuant to this paragraph as of the
      time
      of actual payment of such dividends or distributions.

     

    (iv) Adjustments
      for Reclassification, Exchange or Substitution.
      If the
      Common Stock issuable upon conversion of the Series C Preferred Stock at any
      time or from time to time after the Issuance Date shall be changed to the same
      or different number of shares of any class or classes of stock, whether by
      reclassification, exchange, substitution or otherwise (other than by way of
      a
      stock split or combination of shares or stock dividends provided for in Sections
      5(e)(i), (ii) and (iii), or a reorganization, merger, consolidation, or sale
      of
      assets provided for in Section 5(e)(v)), then, and in each event, an appropriate
      revision to the Conversion Price shall be made and provisions shall be made
      (by
      adjustments of the Conversion Price or otherwise) so that the holder of each
      share of Series C Preferred Stock shall have the right thereafter to convert
      such share of Series C Preferred Stock into the kind and amount of shares of
      stock and other securities receivable upon reclassification, exchange,
      substitution or other change, by holders of the number of shares of Common
      Stock
      into which such share of Series C Preferred Stock might have been converted
      immediately prior to such reclassification, exchange, substitution or other
      change, all subject to further adjustment as provided herein.

     

    (v) Adjustments
      for Reorganization, Merger, Consolidation or Sales of Assets.
      If at
      any time or from time to time after the Issuance Date there shall be a capital
      reorganization of the Company (other than by way of a stock split or combination
      of shares or stock dividends or distributions provided for in Section 5(e)(i),
      (ii) and (iii), or a reclassification, exchange or substitution of shares
      provided for in Section 5(e)(iv)), or a merger or consolidation of the Company
      with or into another corporation where the holders of outstanding voting
      securities prior to such merger or consolidation do not own over 50% of the
      outstanding voting securities of the merged or consolidated entity, immediately
      after such merger or consolidation, or the sale of all or substantially all
      of
      the Company's properties or assets to any other person (an "Organic Change"),
      then as a part of such Organic Change an appropriate revision to the Conversion
      Price shall be made if necessary and provision shall be made if necessary (by
      adjustments of the Conversion Price or otherwise) so that the holder of each
      share of Series C Preferred Stock shall have the right thereafter to convert
      such share of Series C Preferred Stock into the kind and amount of shares of
      stock and other securities or property which such holder would have had the
      right to receive had such holder converted its shares of Series C Preferred
      Stock immediately prior to the consummation of such Organic Change. In any
      such
      case, appropriate adjustment shall be made in the application of the provisions
      of this Section 5(e)(v) with respect to the rights of the holders of the Series
      C Preferred Stock after the Organic Change to the end that the provisions of
      this Section 5(e)(v) (including any adjustment in the Conversion Price then
      in
      effect and the number of shares of stock or other securities deliverable upon
      conversion of the Series C Preferred Stock) shall be applied after that event
      in
      as nearly an equivalent manner as may be practicable.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (vi) Adjustments
      for Issuance of Additional Shares of Common Stock.

     

    (A) In
      the
      event the Company, shall, at any time or from time to time, issue or sell any
      additional shares of Common Stock (otherwise than as provided in the foregoing
      subsections (i) through (v) of this Section 5(e) or pursuant to Common Stock
      Equivalents (hereafter defined) granted or issued prior to the Issuance Date)
      (the "Additional Shares of Common Stock"), at a price per share less than the
      Conversion Price, or without consideration, the Conversion Price then in effect
      upon each such issuance shall be adjusted to that price (rounded to the nearest
      cent) determined by multiplying the Conversion Price by a fraction:

     

    (1) the
      numerator of which shall be equal to the sum of (A) the number of shares of
      Common Stock outstanding immediately prior to the issuance of such Additional
      Shares of Common Stock plus (B) the number of shares of Common Stock (rounded
      to
      the nearest whole share) which the aggregate consideration for the total number
      of such Additional Shares of Common Stock so issued would purchase at a price
      per share equal to the then Conversion Price, and

     

    (2) the
      denominator of which shall be equal to the number of shares of Common Stock
      outstanding immediately after the issuance of such Additional Shares of Common
      Stock.

     

    No
      adjustment of the number of shares of Common Stock shall be made under paragraph
      (A) of this Section 5(e)(vi) upon the issuance of any Additional Shares of
      Common Stock which are issued pursuant to the exercise of any warrants or other
      subscription or purchase rights or pursuant to the exercise of any conversion
      or
      exchange rights in any Common Stock Equivalents (as defined below), if any
      such
      adjustment shall previously have been made upon the issuance of such warrants
      or
      other rights or upon the issuance of such Common Stock Equivalents (or upon
      the
      issuance of any warrant or other rights therefore) pursuant to Section
      5(e)(vii).

     

    (vii) Issuance
      of Common Stock Equivalents.
      If the
      Company, at any time after the Issuance Date, shall issue any securities
      convertible into or exchangeable for, directly or indirectly, Common Stock
      ("Convertible Securities"), other than the Series C Preferred Stock, or any
      rights or warrants or options to purchase any such Common Stock or Convertible
      Securities, shall be issued or sold (collectively, the "Common Stock
      Equivalents") and the aggregate of the price per share for which Additional
      Shares of Common Stock may be issuable thereafter pursuant to such Common Stock
      Equivalent, plus the consideration received by the Company for issuance of
      such
      Common Stock Equivalent divided by the number of shares of Common Stock issuable
      pursuant to such Common Stock Equivalent (the "Aggregate Per Common Share
      Price") shall be less than the Conversion Price, or if, after any such issuance
      of Common Stock Equivalents, the price per share for which Additional Shares
      of
      Common Stock may be issuable thereafter is amended or adjusted, and such price
      as so amended or adjusted shall make the Aggregate Per Common Share Price be
      less than Conversion Price in effect at the time of such amendment or
      adjustment, then the Conversion Price then in effect shall be adjusted pursuant
      to Section 5(e)(vi) above assuming that all Additional Shares of Common Stock
      have been issued pursuant to the Convertible Securities or Common Stock
      Equivalents for a purchase price equal to the Aggregate Per Common Share Price.
      No adjustment of the Conversion Price shall be made under this subsection (vii)
      upon the issuance of any Convertible Security which is issued pursuant to the
      exercise of any warrants or other subscription or purchase rights therefore,
      if
      any adjustment shall previously have been made to the exercise price of such
      warrants then in effect upon the issuance of such warrants or other rights
      pursuant to this subsection (vii). No adjustment shall be made to the Conversion
      Price upon the issuance of Common Stock pursuant to the exercise, conversion
      or
      exchange of any Convertible Security or Common Stock Equivalent where an
      adjustment to the Conversion Price was made as a result of the issuance or
      purchase of any Convertible Security or Common Stock Equivalent.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (viii) Consideration
      for Stock.
      In case
      any shares of Common Stock or Convertible Securities other than the Series
      C
      Preferred Stock, or any rights or warrants or options to purchase any such
      Common Stock or Convertible Securities, shall be issued or sold:

     

    (1) in
      connection with any merger or consolidation in which the Company is the
      surviving corporation (other than any consolidation or merger in which the
      previously outstanding shares of Common Stock of the Company shall be changed
      to
      or exchanged for the stock or other securities of another corporation), the
      amount of consideration therefore shall be deemed to be the fair value, as
      determined reasonably and in good faith by the Board of Directors of the
      Company, of such portion of the assets and business of the nonsurviving
      corporation as such Board may determine to be attributable to such shares of
      Common Stock, Convertible Securities, rights or warrants or options, as the
      case
      may be; or

     

    (2) in
      the
      event of any consolidation or merger of the Company in which the Company is
      not
      the surviving corporation or in which the previously outstanding shares of
      Common Stock of the Company shall be changed into or exchanged for the stock
      or
      other securities of another corporation, or in the event of any sale of all
      or
      substantially all of the assets of the Company for stock or other securities
      of
      any corporation, the Company shall be deemed to have issued a number of shares
      of its Common Stock for stock or securities or other property of the other
      corporation computed on the basis of the actual exchange ratio on which the
      transaction was predicated, and for a consideration equal to the fair market
      value on the date of such transaction of all such stock or securities or other
      property of the other corporation. If any such calculation results in adjustment
      of the applicable Conversion Price, or the number of shares of Common Stock
      issuable upon conversion of the Series C Preferred Stock, the determination
      of
      the applicable Conversion Price or the number of shares of Common Stock issuable
      upon conversion of the Series C Preferred Stock immediately prior to such
      merger, consolidation or sale, shall be made after giving effect to such
      adjustment of the number of shares of Common Stock issuable upon conversion
      of
      the Series C Preferred Stock. In the event any consideration received by the
      Company for any securities consists of property other than cash, the fair market
      value thereof at the time of issuance or as otherwise applicable shall be as
      determined in good faith by the Board of Directors of the Company. In the event
      Common Stock is issued with other shares or securities or other assets of the
      Company for consideration which covers both, the consideration computed as
      provided in this Section 5(e)(viii) shall be allocated among such securities
      and
      assets as determined in good faith by the Board of Directors of the
      Company.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (ix) Record
      Date.
      In case
      the Company shall take record of the holders of its Common Stock or any other
      Preferred Stock for the purpose of entitling them to subscribe for or purchase
      Common Stock or Convertible Securities, then the date of the issue or sale
      of
      the shares of Common Stock shall be deemed to be such record date.

     

    (x) Certain
      Issues Excepted.
      Anything herein to the contrary notwithstanding, the Company shall not be
      required to make any adjustment to the Conversion Price upon (i) the Company's
      issuance of any Additional Shares of Common Stock and warrants therefore in
      connection with a merger and/or acquisition, consolidation, sale or disposition
      of all or substantially all of the Company's assets; provided that the
      Conversion Price shall be adjusted in accordance with Section 5(e)(v), (ii)
      the
      Company's issuance of Additional Shares of Common Stock or warrants therefore
      in
      connection with strategic agreements so long as such issuances are not for
      the
      purpose of raising capital, (iii) Common Stock or grants of options to purchase
      Common Stock pursuant to any stock option plans and employee stock purchase
      plans approved by the Company’s board of directors, so long as such issuances in
      the aggregate do not exceed the number of shares of Common Stock (or options
      to
      purchase such number of shares of Common Stock) issuable pursuant to such plans
      as they exist on the date hereof, (iv) any issuances of securities of Common
      Stock pursuant to Company 401(k) matches, (v) any issuances of securities to
      consultants, financial advisers or public relations consultants to the Company
      so long as such issuances do not in the aggregate exceed ten percent (10%)
      of
      the Company's issued and outstanding shares of Common Stock as of the Issuance
      Date, (vi) securities issued pursuant to the conversion or exercise of
      convertible or exercisable securities issued or outstanding on or prior to
      the
      date hereof (so long as the conversion or exercise price in such securities
      are
      not amended to lower such price and/or adversely affect the holders), (vii)
      the
      issuance of the Notes and the Warrants (each as defined below), (viii)
      securities issued pursuant to a bona fide firm underwritten public offering
      of
      the Company’s securities, (ix) the payment of liquidated damages pursuant to a
      Registration Rights Agreement, and (x) the issuance of common stock upon the
      exercise or conversion of any securities described in clauses (i) through (ix)
      above. For purposes of this Certificate of Designations, (A) “Notes” shall mean
      collectively, each of the following, as the same may be amended from time to
      time: (1) the senior secured convertible promissory notes issued pursuant to
      those certain Note and Warrant Purchase Agreements dated as of March 31, 2006
      and April 12, 2006 (the "2006 Purchase Agreements”), by and among the Company
      and the purchasers listed therein, (2) the additional senior secured convertible
      promissory notes in the aggregate principal amount of up to $3,600,000 issued
      pursuant to that certain Note and Warrant Purchase Agreement, dated as of
      September 21, 2007 (collectively with the 2006 Purchase Agreements, the
      "Purchase Agreements”), and (3) any additional senior secured convertible
      promissory notes issued from time to time as interest on the outstanding
      principal balance of the foregoing promissory notes; and (B) “Warrants” shall
      mean, collectively, each of the following, as the same may be amended from
      time
      to time: (A) the warrants to purchase shares of Common Stock issued pursuant
      to
      the Purchase Agreements; and (B) the warrants to purchase shares of Common
      Stock
      issued in connection with the amendment of the senior secured convertible
      promissory notes issued pursuant to the 2006 Purchase Agreements.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (f) No
      Impairment.
      The
      Company shall not, by amendment of its Certificate of Incorporation or through
      any reorganization, transfer of assets, consolidation, merger, dissolution,
      issue or sale of securities or any other voluntary action, avoid or seek to
      avoid the observance or performance of any of the terms to be observed or
      performed hereunder by the Company, but will at all times in good faith, assist
      in the carrying out of all the provisions of this Section 5 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 C Preferred Stock against
      impairment. In the event a holder shall elect to convert any shares of Series
      C
      Preferred Stock as provided herein, the Company cannot refuse conversion
      (subject to the limitations set forth in Section 7 herein) based on any claim
      that such holder or any one associated or affiliated with such holder has been
      engaged in any violation of law, unless (i) an order from the Securities and
      Exchange Commission prohibiting such conversion or (ii) an injunction from
      a
      court, on notice, restraining and/or adjoining conversion of all or of said
      shares of Series C Preferred Stock shall have been issued and the Company posts
      a surety bond for the benefit of such holder in an amount equal to 100% of
      the
      Liquidation Preference Amount of the Series C Preferred Stock such holder has
      elected to convert, which bond shall remain in effect until the completion
      of
      arbitration/litigation of the dispute and the proceeds of which shall be payable
      to such holder in the event it obtains judgment. If the Company is the
      prevailing party in any legal action or other legal proceeding relating to
      the
      Conversion Rights of the holders of the Series C Preferred Stock, then the
      Company shall be entitled to recover from the holders of Series C Preferred
      Stock reasonable attorneys’ fees, costs and disbursements (in addition to any
      other relief to which the Company may be entitled).

    

    (g) Certificates
      as to Adjustments.
      Upon
      occurrence of each adjustment or readjustment of the Conversion Price or number
      of shares of Common Stock issuable upon conversion of the Series C Preferred
      Stock pursuant to this Section 5, the Company at its expense shall promptly
      compute such adjustment or readjustment in accordance with the terms hereof
      and
      furnish to each holder of such Series C Preferred Stock a certificate setting
      forth such adjustment and readjustment, showing in detail the facts upon which
      such adjustment or readjustment is based. The Company shall, upon written
      request of the holder of such affected Series C Preferred Stock, at any time,
      furnish or cause to be furnished to such holder a like certificate setting
      forth
      such adjustments and readjustments, the Conversion Price in effect at the time,
      and the number of shares of Common Stock and the amount, if any, of other
      securities or property which at the time would be received upon the conversion
      of a share of such Series C Preferred Stock. Notwithstanding the foregoing,
      the
      Company shall not be obligated to deliver a certificate unless such certificate
      would reflect an increase or decrease of at least one percent of such adjusted
      amount.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (h) Issue
      Taxes.
      The
      Company shall pay any and all issue and other taxes, excluding federal, state
      or
      local income taxes, that may be payable in respect of any issue or delivery
      of
      shares of Common Stock on conversion of shares of Series C Preferred Stock
      pursuant thereto; provided, however, that the Company shall not be obligated
      to
      pay any transfer taxes resulting from any transfer requested by any holder
      in
      connection with any such conversion.

     

    (i) Notices.
      All
      notices and other communications hereunder shall be in writing and shall be
      deemed given if delivered personally or by facsimile or three (3) business
      days
      following being mailed by certified or registered mail, postage prepaid,
      return-receipt requested, addressed to the holder of record at its address
      appearing on the books of the Company. The Company will give written notice
      to
      each holder of Series C Preferred Stock at least twenty (20) days prior to
      the
      date on which the Company closes its books or takes a record (I) with respect
      to
      any dividend or distribution upon the Common Stock, (II) with respect to any
      pro
      rata subscription offer to holders of Common Stock or (III) for determining
      rights to vote with respect to any Organic Change, dissolution, liquidation
      or
      winding-up and in no event shall such notice be provided to such holder prior
      to
      such information being made known to the public. The Company will also give
      written notice to each holder of Series C Preferred Stock at least twenty (20)
      days prior to the date on which any Organic Change, dissolution, liquidation
      or
      winding-up will take place and in no event shall such notice be provided to
      such
      holder prior to such information being made known to the public.

     

    (j) Fractional
      Shares.
      No
      fractional shares of Common Stock shall be issued upon conversion of the Series
      C Preferred Stock. In lieu of any fractional shares to which the holder would
      otherwise be entitled, the Company shall pay cash equal to the product of such
      fraction multiplied by the average of the Closing Bid and Ask Prices of the
      Common Stock for the five (5) consecutive trading immediately preceding the
      Voluntary Conversion Date or Mandatory Conversion Date, as
      applicable.

     

    (k) Reservation
      of Common Stock.
      The
      Company shall, so long as any shares of Series C Preferred Stock are
      outstanding, reserve and keep available out of its authorized and unissued
      Common Stock, solely for the purpose of effecting the conversion of the Series
      C
      Preferred Stock, such number of shares of Common Stock as shall from time to
      time be sufficient to effect the conversion of all of the Series C Preferred
      Stock then outstanding; provided that the number of shares of Common Stock
      so
      reserved shall at no time be less than 110% of the number of shares of Common
      Stock for which the shares of Series C Preferred Stock are at any time
      convertible. The initial number of shares of Common Stock reserved for
      conversions of the Series C Preferred Stock and each increase in the number
      of
      shares so reserved shall be allocated pro rata among the holders of the Series
      C
      Preferred Stock based on the number of shares of Series C Preferred Stock held
      by each holder of record at the time of issuance of the Series C Preferred
      Stock
      or increase in the number of reserved shares, as the case may be. In the event
      a
      holder shall sell or otherwise transfer any of such holder's shares of Series
      C
      Preferred Stock, each transferee shall be allocated a pro rata portion of the
      number of reserved shares of Common Stock reserved for such transferor. Any
      shares of Common Stock reserved and which remain allocated to any person or
      entity which does not hold any shares of Series C Preferred Stock shall be
      allocated to the remaining holders of Series C Preferred Stock, pro rata based
      on the number of shares of Series C Preferred Stock then held by such
      holder.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (l) Retirement
      of Series C Preferred Stock.
      Conversion of Series C Preferred Stock shall be deemed to have been effected
      on
      the applicable Conversion Date. Upon conversion of only a portion of the number
      of shares of Series C Preferred Stock represented by a certificate surrendered
      for conversion, the Company shall issue and deliver to such holder at the
      expense of the Company, a new certificate covering the number of shares of
      Series C Preferred Stock representing the unconverted portion of the certificate
      so surrendered as required by Section 5(b)(ii).

     

    (m) Regulatory
      Compliance.
      If any
      shares of Common Stock to be reserved for the purpose of conversion of Series
      C
      Preferred Stock require registration or listing with or approval of any
      governmental authority, stock exchange or other regulatory body under any
      federal or state law or regulation or otherwise before such shares may be
      validly issued or delivered upon conversion, the Company shall, at its sole
      cost
      and expense, in good faith and as expeditiously as possible, endeavor to secure
      such registration, listing or approval, as the case may be.

     

    6. No
      Preemptive Rights.
      Except
      as provided in Section 5 hereof, no holder of the Series C Preferred Stock
      shall
      be entitled to rights to subscribe for, purchase or receive any part of any
      new
      or additional shares of any class, whether now or hereinafter authorized, or
      of
      bonds or debentures, or other evidences of indebtedness convertible into or
      exchangeable for shares of any class, but all such new or additional shares
      of
      any class, or any bond, debentures or other evidences of indebtedness
      convertible into or exchangeable for shares, may be issued and disposed of
      by
      the Board of Directors on such terms and for such consideration (to the extent
      permitted by law), and to such person or persons as the Board of Directors
      in
      their absolute discretion may deem advisable.

     

    7. Conversion
      Restrictions.

     

    (a) Notwithstanding
      anything to the contrary set forth in Section 5 of this Certificate of
      Designations, at no time, other than in a bona fide Change of Control (as
      defined below) transaction, may a holder of shares of Series C Preferred Stock
      convert shares of the Series C Preferred Stock if the number of shares of Common
      Stock to be issued pursuant to such conversion would exceed, when aggregated
      with all other shares of Common Stock owned by such holder at such time, the
      number of shares of Common Stock which would result in such holder owning more
      than 4.99% of all of the Common Stock outstanding at such time; provided,
      however, that upon a holder of Series C Preferred Stock providing the Company
      with sixty-one (61) days notice (pursuant to Section 5(i) hereof) (the "Waiver
      Notice") that such holder would like to waive Section 7(a) of this Certificate
      of Designations with regard to any or all shares of Common Stock issuable upon
      conversion of Series C Preferred Stock, this Section 7(a) shall be of no force
      or effect with regard to those shares of Series C Preferred Stock referenced
      in
      the Waiver Notice. In the event a holder is unable to fully convert its shares
      of Series C Preferred Stock in connection with either a mandatory conversion
      pursuant to Section 5(c) hereof, or a conversion election following the delivery
      of a Company's Redemption Notice pursuant to Section 8(e) hereof due
      to
      the restrictions set forth in this Section 7(a), such holder may elect to
      receive Series D Convertible Preferred Stock of the Company in lieu of shares
      of
      Common Stock convertible into the number of shares of Common Stock that would
      have been delivered to such holder but for the limitations set forth in this
      Section 7(a). The foregoing sentence shall not preclude a holder from waiving
      at
      any time its rights to limit its ownership to (i) 4.99% of all of the Common
      Stock issued and outstanding at such time in accordance with this Section 7(a)
      or (ii) 9.99% of all of the Common Stock issued and outstanding at such time
      in
      accordance with Section 7(b) hereof.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (b) Notwithstanding
      anything to the contrary set forth in Section 5 of this Certificate of
      Designations, at no time may a holder of shares of Series C Preferred Stock
      convert shares of the Series C Preferred Stock if the number of shares of Common
      Stock to be issued pursuant to such conversion would exceed, when aggregated
      with all other shares of Common Stock owned by such holder at such time, would
      result in such holder beneficially owning (as determined in accordance with
      Section 13(d) of the Securities Exchange Act of 1934, as amended, and the rules
      thereunder) in excess of 9.99% of the then issued and outstanding shares of
      Common Stock outstanding at such time; provided, however, that upon a holder
      of
      Series C Preferred Stock providing the Company with a Waiver Notice that such
      holder would like to waive Section 7(b) of this Certificate of Designations
      with
      regard to any or all shares of Common Stock issuable upon conversion of Series
      C
      Preferred Stock, this Section 7(b) shall be of no force or effect with regard
      to
      those shares of Series C Preferred Stock referenced in the Waiver
      Notice.

     

    8. Redemption.

     

    (a) Redemption
      Option Upon Change of Control.
      In
      addition to any other rights of the Company or the holders of Series C Preferred
      Stock contained herein, simultaneous with the occurrence of a Change of Control
      (as defined below), the Company, at its option, or each holder of Series C
      Preferred Stock, at such holder's option, shall have the right to redeem or
      cause the Company to redeem, as applicable, all or a portion of the outstanding
      Series C Preferred Stock in cash at a price per share of Series C Preferred
      Stock equal to 100% of the Liquidation Preference Amount (the "Change of Control
      Redemption Price"). Notwithstanding the foregoing to the contrary, (i) the
      Company may effect a redemption pursuant to this Section 8(a) only if (A)
a
      registration
      statement providing for the resale of the shares of Common Stock issuable upon
      conversion of the Series C Preferred Stock is then in effect, (B) trading
      in the Common Stock shall not have been suspended by the
      Securities and Exchange Commission or the OTC Bulletin Board (or other exchange
      or market on which the Common Stock is trading),
      and (C)
      the Company is in material compliance with the terms and conditions of this
      Certificate of Designations and the other Transaction Documents;
      and (ii)
      in the case of a redemption at the option of a holder or holders of the Series
      C
      Preferred Stock, the Company shall have the sole option to pay the Change of
      Control Redemption Price in cash or shares of Common Stock. The number of shares
      of Common Stock to be issued as the Change of Control Redemption Price shall
      be
      determined by dividing (i) the total amount of the Change of Control Redemption
      Price by (ii) the average Closing Bid and Ask Price of the Common Stock for
      the
      five (5) trading days immediately preceding the date such Change of Control
      Redemption Price is due.

    

    (b) "Change
      of Control".
      A
      "Change of Control" shall be deemed to have occurred at such time as a third
      party not affiliated with the Company or any holders of the Series C Preferred
      Stock shall have acquired, in one or a series of related transactions, equity
      securities of the Company representing more than 50% of the outstanding voting
      securities of the Company.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (c) Mechanics
      of Redemption at Option of Buyer Upon Change of Control.

     

    (i) No
      sooner
      than fifteen (15) days nor later than ten (10) days prior to the consummation
      of
      a Change of Control, but not prior to the public announcement of such Change
      of
      Control, the Company shall deliver written notice thereof via facsimile and
      overnight courier ("Notice of Change of Control") to each holder of Series
      C
      Preferred Stock. At any time after receipt of a Notice of Change of Control
      (or,
      in the event a Notice of Change of Control is not delivered at least ten (10)
      days prior to a Change of Control, at any time within ten (10) days prior to
      a
      Change of Control), any holder of Series C Preferred Stock then outstanding
      may
      require the Company to redeem, effective immediately prior to the consummation
      of such Change of Control, all of the holder's Series C Preferred Stock then
      outstanding by delivering written notice thereof via facsimile and overnight
      courier ("Notice of Redemption at Option of Buyer Upon Change of Control")
      to
      the Company, which Notice of Redemption at Option of Buyer Upon Change of
      Control shall indicate (i) the number of shares of Series C Preferred Stock
      that
      such holder is electing to redeem and (ii) the Change of Control Redemption
      Price, as calculated pursuant to Section 8(a) above.

     

    (ii) Upon
      the
      Company's receipt of a Notice(s) of Redemption at Option of Buyer Upon Change
      of
      Control from any holder of Series C Preferred Stock, the Company shall promptly
      notify each holder of Series C Preferred Stock by facsimile of the Company's
      receipt of such Notice(s) of Redemption at Option of Buyer Upon Change of
      Control and each holder which has sent such a notice shall promptly submit
      to
      the Company such holder's Preferred Stock Certificates which such holder has
      elected to have redeemed. The Change of Control Redemption Price shall be paid
      in cash, or at the option of the Company in the case of a redemption at the
      option of the holders of Series C Preferred Stock, in shares of Common Stock,
      in
      accordance with Sections 8(a) and (b) and Section 9 of this Certificate of
      Designations. The Company shall deliver the Change of Control Redemption Price
      immediately prior to or simultaneously with the consummation of the Change
      of
      Control; provided that a holder's Preferred Stock Certificates shall have been
      so delivered to the Company (or an indemnification undertaking with respect
      to
      such Preferred Stock Certificates in the event of their loss, theft or
      destruction); provided further that if the Company is unable to redeem all
      of
      the Series C Preferred Stock to be redeemed, the Company shall redeem an amount
      from each holder of Series C Preferred Stock being redeemed equal to such
      holder's pro-rata amount (based on the number of shares of Series C Preferred
      Stock held by such holder relative to the number of shares of Series C Preferred
      Stock outstanding) of all Series C Preferred Stock being redeemed. If the
      Company shall fail to redeem all of the Series C Preferred Stock submitted
      for
      redemption (other than pursuant to a dispute as to the arithmetic calculation
      of
      the Redemption Price), in addition to any remedy such holder of Series C
      Preferred Stock may have under this Certificate of Designations, the Change
      of
      Control Redemption Price payable in respect of such unredeemed Series C
      Preferred Stock shall bear interest at the rate of 1.0% per month (prorated
      for
      partial months) until paid in full. Until the Company pays such unpaid Change
      of
      Control Redemption Price in full to a holder of shares of Series C Preferred
      Stock submitted for redemption, such holder shall have the option (the "Void
      Optional Redemption Option") to, in lieu of redemption, require the Company
      to
      promptly return to such holder(s) all of the shares of Series C Preferred Stock
      that were submitted for redemption by such holder(s) under this Section 8 and
      for which the Change of Control Redemption Price has not been paid, by sending
      written notice thereof to the Company via facsimile (the "Void Optional
      Redemption Notice"). Upon the Company's receipt of such Void Optional Redemption
      Notice(s) and prior to payment of the full Change of Control Redemption Price
      to
      such holder, (i) the Notice(s) of Redemption at Option of Buyer Upon Change
      of
      Control shall be null and void with respect to those shares of Series C
      Preferred Stock submitted for redemption and for which the Change of Control
      Redemption Price has not been paid, (ii) the Company shall immediately return
      any Series C Preferred Stock submitted to the Company by each holder for
      redemption under this Section 8(c) and for which the Change of Control
      Redemption Price has not been paid, and (iii) the Conversion Price of such
      returned shares of Series C Preferred Stock shall be adjusted to the lesser
      of
      (A) the Conversion Price and (B) the lowest Closing Bid and Ask Price during
      the
      period beginning on the date on which the Notice(s) of Redemption at Option
      of
      Buyer Upon Change of Control is delivered to the Company and ending on the
      date
      on which the Void Optional Redemption Notice(s) is delivered to the Company;
      provided that no adjustment shall be made if such adjustment would result in
      an
      increase of the Conversion Price then in effect. A holder's delivery of a Void
      Optional Redemption Notice and exercise of its rights following such notice
      shall not effect the Company's obligations to make any payments which have
      accrued prior to the date of such notice other than interest
      payments.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (d) Mechanics
      of Redemption at Option of Company Upon Change of Control.
      At any
      time within ten (10) days prior to a Change of Control transaction, the Company
      may redeem, effective immediately prior to the consummation of such Change
      of
      Control, all of the holder's Series C Preferred Stock then outstanding by
      delivering written notice thereof via facsimile and overnight courier ("Notice
      of Redemption at Option of Company Upon Change of Control") to each holder
      of
      Series C Preferred Stock, which Notice of Redemption at Option of Company Upon
      Change of Control shall indicate (i) the number of shares of Series C Preferred
      Stock that the Company is electing to redeem and (ii) the Change of Control
      Redemption Price, as calculated pursuant to Section 8(a) above. The Change
      of
      Control Redemption Price shall be paid in cash in accordance with Section 8(a)
      of this Certificate of Designations. On or prior to the Change of Control,
      the
      holders of Series C Preferred Stock shall surrender to the Company the
      certificate or certificates representing such shares, in the manner and at
      the
      place designated in the Notice of Redemption at Option of Company Upon Change
      of
      Control. The Company shall deliver the Change of Control Redemption Price
      immediately prior to or simultaneously with the consummation of the Change
      of
      Control; provided that a holder's Preferred Stock Certificates shall have been
      so delivered to the Company (or an indemnification undertaking with respect
      to
      such Preferred Stock Certificates in the event of their loss, theft or
      destruction). From and after the Change of Control transaction, unless there
      shall have been a default in payment of the Change of Control Redemption Price,
      all rights of the holders of Series C Preferred Stock as a holder of such Series
      C Preferred Stock (except the right to receive the Change of Control Redemption
      Price without interest upon surrender of their certificate or certificates)
      shall cease with respect to any redeemed shares of Series C Preferred Stock,
      and
      such shares shall not thereafter be transferred on the books of the Company
      or
      be deemed to be outstanding for any purpose whatsoever. Notwithstanding the
      foregoing to the contrary, nothing contained herein shall limit a holder’s
      ability to convert its shares of Series C Preferred Stock following the receipt
      of the Notice of Redemption at Option of Company Upon Change of Control and
      prior to the consummation of the Change of Control transaction.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (e) Company's
      Redemption Option.
      The
      Company may redeem all or a portion of the Series C Preferred Stock outstanding
      upon five (5) business days prior written notice (the "Company's Redemption
      Notice") at a price per share of Series C Preferred Stock equal to 110% of
      the
      Liquidation Preference Amount (the “Company’s Redemption Price”); provided, that
      if a holder has delivered a Conversion Notice to the Company for all or a
      portion of the shares of Series C Preferred Stock, such shares of Series C
      Preferred Stock designated to be redeemed may be converted by such holder;
      provided further that if during the period between delivery of the Company's
      Redemption Notice and the Redemption Date a holder shall become entitled to
      deliver a Notice of Redemption at Option of Buyer Upon Change of Control, then
      the right of such holder shall take precedence over the previously delivered
      Company Redemption Notice. If a holder delivers a Conversion Notice but is
      prohibited from converting all of its shares of Series C Preferred Stock as
      a
      result of the restrictions contained in Section 7 of this Certificate of
      Designations, such shares of Series C Preferred Stock shall be exchanged for
      shares of a new series of preferred stock with preferences, rights and
      limitations substantially similar to those of the Series C Preferred Stock.
      The
      Company's Redemption Notice shall state the date of redemption which date shall
      be five (5) business days after the Company has delivered the Company's
      Redemption Notice (the "Company's Redemption Date"), the Company's Redemption
      Price and the number of shares to be redeemed by the Company. The Company shall
      deliver the Company's Redemption Price to the holder(s) within five (5) business
      days after the Company has delivered the Company's Redemption Notice, provided,
      that if the holder(s) delivers a Conversion Notice before the Company's
      Redemption Date, then the portion of the Company's Redemption Price which would
      be paid to redeem the shares of Series C Preferred Stock covered by such
      Conversion Notice shall be returned to the Company upon delivery of the Common
      Stock issuable in connection with such Conversion Notice to the holder(s).
      On
      the Redemption Date, the Company shall pay the Company's Redemption Price,
      subject to any adjustment pursuant to the immediately preceding sentence, to
      the
      holder(s) on a pro rata basis, provided, however, that upon receipt by the
      Company of the Preferred Stock Certificates to be redeemed pursuant to this
      Section 8(e), the Company shall, on the next business day following the date
      of
      receipt by the Company of such Preferred Stock Certificates, pay the Company's
      Redemption Price, subject to any adjustment pursuant to the immediately
      preceding sentence, to the holder(s) on a pro rata basis. Notwithstanding the
      foregoing to the contrary, the Company may effect a redemption pursuant to
      this
      Section 8(e) only if (A) a
      registration
      statement providing for the resale of the shares of Common Stock issuable upon
      conversion of the Series C Preferred Stock is then in effect, (B) trading
      in the Common Stock shall not have been suspended by the
      Securities and Exchange Commission or the OTC Bulletin Board (or other exchange
      or market on which the Common Stock is trading),
      (C) the
      Company is in material compliance with the terms and conditions of this
      Certificate of Designations and the other Transaction Documents, and (D) the
      Company is not in possession of any material non-public information.
      Nothing
      contained herein shall limit a holder’s ability to convert its shares of Series
      C Preferred Stock following the receipt of the Company’s Redemption Notice and
      prior to the Company's Redemption Date.

     

    9. Inability
      to Fully Convert.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    (a) Holder's
      Option if Company Cannot Fully Convert.
      If,
      upon the Company's receipt of a Conversion Notice or on the Mandatory Conversion
      Date, the Company cannot issue shares of Common Stock registered for resale
      under a registration statement for any reason (unless such registration
      statement is not then required to be effective pursuant to the Registration
      Rights Agreement), including, without limitation, because the Company (w) does
      not have a sufficient number of shares of Common Stock authorized and available,
      (x) is otherwise prohibited by applicable law or by the rules or regulations
      of
      any stock exchange, interdealer quotation system or other self-regulatory
      organization with jurisdiction over the Company or its securities from issuing
      all of the Common Stock which is to be issued to a holder of Series C Preferred
      Stock pursuant to a Conversion Notice or (y) fails to have a sufficient number
      of shares of Common Stock registered for resale under the registration statement
      (unless such registration statement is not then required to be effective
      pursuant to the Registration Rights Agreement), then the Company shall issue
      as
      many shares of Common Stock as it is able to issue in accordance with such
      holder's Conversion Notice and pursuant to Section 5(b)(ii) above and, with
      respect to the unconverted Series C Preferred Stock (other than unconverted
      Series C Preferred Stock as a result of the restrictions contained in Sections
      7(a) or 7(b) hereof), the holder, solely at such holder's option, can elect,
      within five (5) business days after receipt of notice from the Company thereof
      to:

     

    (i) require
      the Company to redeem from such holder those shares of Series C Preferred Stock
      for which the Company is unable to issue Common Stock in accordance with such
      holder's Conversion Notice ("Mandatory Redemption") at a price per share equal
      to the Change of Control Redemption Price as of such Conversion Date (the
      "Mandatory Redemption Price"); provided that the Company shall have the sole
      option to pay the Mandatory Redemption Price in cash or shares of Common Stock.
      The number of shares of Common Stock to be issued as the Mandatory Redemption
      Price shall be determined by dividing (i) the total amount of the Mandatory
      Redemption Price by (ii) the average Closing Bid and Ask Price of the Common
      Stock for the five (5) trading days immediately preceding the date such
      Mandatory Redemption Price is due;

     

    (ii) if
      the
      Company's inability to fully convert Series C Preferred Stock is pursuant to
      Section 9(a)(y) above, require the Company to issue restricted shares of Common
      Stock in accordance with such holder's Conversion Notice and pursuant to Section
      5(b)(ii) above; 

     

    (iii) void
      its
      Conversion Notice and retain or have returned, as the case may be, the shares
      of
      Series C Preferred Stock that were to be converted pursuant to such holder's
      Conversion Notice (provided that a holder's voiding its Conversion Notice shall
      not effect the Company's obligations to make any payments which have accrued
      prior to the date of such notice); or

     

    (iv) exercise
      its Buy-In rights pursuant to and in accordance with the terms and provisions
      of
      Section 5(b)(vi) hereof.

     

    (b) Mechanics
      of Fulfilling Holder's Election.
      The
      Company shall promptly send via facsimile to a holder of Series C Preferred
      Stock, upon receipt of a facsimile copy of a Conversion Notice from such holder
      which cannot be fully satisfied as described in Section 9(a) above, a notice
      of
      the Company's inability to fully satisfy such holder's Conversion Notice (the
      "Inability to Fully Convert Notice"). Such Inability to Fully Convert Notice
      shall indicate (i) the reason why the Company is unable to fully satisfy such
      holder's Conversion Notice, (ii) the number of Series C Preferred Stock which
      cannot be converted and (iii) the applicable Mandatory Redemption Price. Such
      holder shall notify the Company of its election pursuant to Section 9(a) above
      by delivering written notice via facsimile to the Company ("Notice in Response
      to Inability to Convert").

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    (c) Pro-rata
      Conversion and Redemption.
      In the
      event the Company receives a Conversion Notice from more than one holder of
      Series C Preferred Stock on the same day and the Company can convert and redeem
      some, but not all, of the Series C Preferred Stock pursuant to this Section
      9,
      the Company shall convert and redeem from each holder of Series C Preferred
      Stock electing to have Series C Preferred Stock converted and redeemed at such
      time an amount equal to such holder's pro-rata amount (based on the number
      shares of Series C Preferred Stock held by such holder relative to the number
      shares of Series C Preferred Stock outstanding) of all shares of Series C
      Preferred Stock being converted and redeemed at such time.

     

    (d) Payment
      of Redemption Price.
      If such
      holder shall elect to have its shares redeemed pursuant to Section 9(a)(i)
      above, the Company shall pay the Mandatory Redemption Price to such holder
      within thirty (30) days of the Company's receipt of the holder's Notice in
      Response to Inability to Convert, provided that prior to the Company's receipt
      of the holder's Notice in Response to Inability to Convert the Company has
      not
      delivered a notice to such holder stating, to the satisfaction of the holder,
      that the event or condition resulting in the Mandatory Redemption has been cured
      and all Common Stock issuable to such holder in accordance with such holder's
      Conversion Notice can and will be delivered to the holder. If the Company shall
      fail to pay the applicable Mandatory Redemption Price to such holder on a timely
      basis as described in this Section 8(d) (other than pursuant to a good faith
      dispute of the arithmetic calculation of the Mandatory Redemption Price), in
      addition to any remedy such holder of Series C Preferred Stock may have under
      this Certificate of Designation, such unpaid amount shall bear interest at
      the
      rate of 1.0% per month (prorated for partial months) until paid in full. Until
      the full Mandatory Redemption Price is paid in full to such holder, such holder
      may (i) void the Mandatory Redemption with respect to those shares of Series
      C
      Preferred Stock for which the full Mandatory Redemption Price has not been
      paid,
      (ii) receive back such shares of Series C Preferred Stock, and (iii) require
      that the Conversion Price of such returned shares of Series C Preferred Stock
      be
      adjusted to the lesser of (A) the Conversion Price and (B) the average Closing
      Bid and Ask Price during the five day period ending on the date the holder
      voided the Mandatory Redemption.

     

    10. Vote
      to Change the Terms of or Issue Preferred Stock.
      The
      affirmative vote at a meeting duly called for such purpose or the written
      consent without a meeting, of the holders of not less than 75% of the then
      outstanding shares of Series C Preferred Stock, shall be required (a) for any
      change to this Certificate of Designations or the Company's Certificate of
      Incorporation which would amend, alter, change or repeal any of the powers,
      designations, preferences and rights of the Series C Preferred Stock or (b)
      for
      the issuance of additional shares of Series C Preferred Stock.

     

    11. Lost
      or Stolen Certificates.
      Upon
      receipt by the Company of evidence satisfactory to the Company of the loss,
      theft, destruction or mutilation of any Preferred Stock Certificates
      representing the shares of Series C Preferred Stock, and, in the case of loss,
      theft or destruction, of an indemnification undertaking by the holder to the
      Company (in form and substance satisfactory to the Company) and, in the case
      of
      mutilation, upon surrender and cancellation of the Preferred Stock
      Certificate(s), the Company shall execute and deliver new Preferred Stock
      Certificate(s) of like tenor and date; provided, however, the Company shall
      not
      be obligated to re-issue Preferred Stock Certificates if the holder
      contemporaneously requests the Company to convert such shares of Series C
      Preferred Stock into Common Stock.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    12. Remedies,
      Characterizations, Other Obligations, Breaches and Injunctive
      Relief.
      The
      remedies provided in this Certificate of Designations shall be cumulative and
      in
      addition to all other remedies available under this Certificate of Designations,
      at law or in equity (including a decree of specific performance and/or other
      injunctive relief), no remedy contained herein shall be deemed a waiver of
      compliance with the provisions giving rise to such remedy and nothing herein
      shall limit a holder's right to pursue actual damages for any failure by the
      Company to comply with the terms of this Certificate of Designations. Amounts
      set forth or provided for herein with respect to payments, conversion and the
      like (and the computation thereof) shall be the amounts to be received by the
      holder thereof and shall not, except as expressly provided herein, be subject
      to
      any other obligation of the Company (or the performance thereof). The Company
      acknowledges that a breach by it of its obligations hereunder will cause
      irreparable harm to the holders of the Series C Preferred Stock and that the
      remedy at law for any such breach may be inadequate. The Company therefore
      agrees that, in the event of any such breach, the holders of the Series C
      Preferred Stock shall be entitled, in addition to all other available remedies,
      to an injunction restraining any breach or the Series C Preferred Stockholders'
      reasonable perception of a threatened breach by the Company of the provisions
      of
      this Certificate of Designations, without the necessity of showing economic
      loss
      and without any bond or other security being required.

     

    13. Specific
      Shall Not Limit General; Construction.
      No
      specific provision contained in this Certificate of Designations shall limit
      or
      modify any more general provision contained herein. This Certificate of
      Designation shall be deemed to be jointly drafted by the Company and all initial
      purchasers of the Series C Preferred Stock and shall not be construed against
      any person as the drafter hereof.

     

    14. Failure
      or Indulgence Not Waiver.
      No
      failure or delay on the part of a holder of Series C Preferred Stock in the
      exercise of any power, right or privilege hereunder shall operate as a waiver
      thereof, nor shall any single or partial exercise of any such power, right
      or
      privilege preclude other or further exercise thereof or of any other right,
      power or privilege.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

        IN
      WITNESS
      WHEREOF, the undersigned has executed and subscribed this Certificate and does
      affirm the foregoing as true this ___ day of September, 2007.

    
      	 	 	 
	 	GLOWPOINT,
              INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title:

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    EXHIBIT
      I

     

    GLOWPOINT,
      INC.

    CONVERSION
      NOTICE

     

    Reference
      is made to the Certificate of Designations, Preferences and Rights of the Series
      C Preferred Stock of Glowpoint, Inc. (the "Certificate of Designations"). In
      accordance with and pursuant to the Certificate of Designations, the undersigned
      hereby elects to convert the number of shares of Series C Preferred Stock,
      par
      value $.0001 per share (the "Preferred Shares"), of Glowpoint, Inc., a Delaware
      corporation (the "Company"), indicated below into shares of Common Stock, par
      value $.0001 per share (the "Common Stock"), of the Company, by tendering the
      stock certificate(s) representing the share(s) of Preferred Shares specified
      below as of the date specified below.

     

    Date
      of
      Conversion:   ______________________________________________________________________

     

    Number
      of
      Preferred Shares to be converted:    
____________________________________________________

     

    Stock
      certificate no(s). of Preferred Shares to be converted:   _________________________________________

     

    The
      Common Stock have been sold pursuant to the Registration Statement (as defined
      in the Registration Rights Agreement): YES ____ NO____

     

    Please
      confirm the following information:   

     

    Conversion
      Price:  
_________________________________________________________________________

     

    Number
      of
      shares of Common Stock to be issued:  _________________________________________________

     

    Number
      of
      shares of Common Stock beneficially owned or deemed   

    beneficially
      owned by the Holder on the Date of Conversion:  
________________________________________

     

    Please
      issue the Common Stock into which the Preferred Shares are being converted
      and,
      if applicable, any check drawn on an account of the Company in the following
      name and to the following address:

     

    Issue
      to:    ____________________________________________________________________________

            ____________________________________________________________________________

            ____________________________________________________________________________

     

    Facsimile
      Number:  
________________________________________________________________________

     

    Name
      of
      bank/broker due to receive the underlying Common Stock:  
___________________________________

     

    Bank/broker's
      four digit "DTC" participant number

    (obtained
      from the receiving bank/broker):  
______________________________________________________

     

    Authorization:    _______________________________________________________________________

                 By:

                 Title:

     

    Dated:  
      __________________Unassociated Document

    CERTIFICATE
      OF DESIGNATIONS, PREFERENCES AND RIGHTS OF

    SERIES
      D
      PREFERRED STOCK

    OF

    GLOWPOINT,
      INC.

     

    The
      undersigned, the Chief Executive Officer and President of Glowpoint, Inc.,
      a
      Delaware corporation (the "Company"), in accordance with the provisions of
      the
      Delaware General Corporation Law, does hereby certify that, pursuant to the
      authority conferred upon the Board of Directors by the Amended and Restated
      Certificate of Incorporation of the Company, the following resolution creating
      a
      series of Series D Convertible Preferred Stock, was duly adopted on September
      18, 2007.

     

    RESOLVED,
      that pursuant to the authority expressly granted to and vested in the Board
      of
      Directors of the Company by provisions of the Amended and Restated Certificate
      of Incorporation of the Company (the "Certificate of Incorporation"), there
      hereby is created out of the shares of Preferred Stock, par value $0.0001 per
      share, of the Company authorized in Article IV of the Certificate of
      Incorporation (the "Preferred Stock"), a series of Preferred Stock of the
      Company, to be named "Series D Convertible Preferred Stock,” consisting of Four
      Thousand (4,000) shares, which series shall have the following designations,
      powers, preferences and relative and other special rights and the following
      qualifications, limitations and restrictions:

    

    1.  
      Designation and Rank.
      The
      designation of such series of the Preferred Stock shall be the Series D
      Convertible Preferred Stock, par value $0.0001 per share (the "Series D
      Preferred Stock"). The maximum number of shares of Series D Preferred Stock
      shall be Four Thousand (4,000) shares. The Series D Preferred Stock shall rank
      prior to the common stock, par value $0.0001 per share (the "Common Stock")
      for
      purposes of liquidation preference, and to all other classes and series of
      equity securities of the Company that by their terms rank junior to the Series
      D
      Preferred Stock ("Junior Stock"), but shall be subordinate to the Company’s
      Series C Preferred Stock. Subject to Section 3(a), the Series D Preferred Stock
      shall be subordinate to and rank junior to all indebtedness of the Company
      now
      or hereafter outstanding.

    

    2.  Dividends.
      Whenever the Board of Directors declares a dividend on the Common Stock each
      holder of record of a share of Series D Preferred Stock, or any fraction of
      a
      share of Series D Preferred Stock, on the date set by the Board of Directors
      to
      determine the owners of the Common Stock of record entitled to receive such
      dividend (the “Record Date”) shall be entitled to receive, out of any assets at
      the time legally available therefore, an amount equal to such dividend declared
      on one share of Common Stock multiplied by the number of shares of Common Stock
      into which such share, or such fraction of a share, of Series D Preferred Stock
      could be converted on the Record Date.

    

    3.  Voting
      Rights.

    

    (a)  Class
      Voting Rights.
      The
      Series D Preferred Stock shall have the following class voting rights. So long
      as any shares of the Series D Preferred Stock remain outstanding, the Company
      shall not, without the affirmative vote or consent of the holders of at least
      three-fourths (3/4) of the shares of the Series D Preferred Stock outstanding
      at
      the time, given in person or by proxy, either in writing or at a meeting, in
      which the holders of the Series D Preferred Stock vote separately as a class,
      amend, alter or repeal the provisions of the Series D Preferred Stock so as
      to
      adversely affect any right, preference, privilege or voting power of the Series
      D Preferred Stock.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)  General
      Voting
      Rights.
      Except
      with respect to transactions upon which the Series D Preferred Stock shall
      be
      entitled to vote separately as a class pursuant to Section 3(a) above, the
      Series D Preferred Stock shall have no voting rights. The Common Stock into
      which the Series D Preferred Stock is convertible shall, upon issuance, have
      all
      of the same voting rights as other issued and outstanding Common Stock of the
      Company.

    

    4.  Liquidation
      Preference.

    

    (a)  In
      the
      event of the liquidation, dissolution or winding up of the affairs of the
      Company, whether voluntary or involuntary, after payment or provision for
      payment of the debts and other liabilities of the Company, the holders of shares
      of the Series D Preferred Stock then outstanding shall be entitled to receive,
      out of the assets of the Company, whether such assets are capital or surplus
      of
      any nature, an amount equal an amount per share of Series D Preferred Stock
      calculated by taking the total amount available for distribution to holders
      of
      all the Company’s outstanding Common Stock before deduction of any preference
      payments for the Series D Preferred Stock, divided by the total of (x) all
      of
      the then outstanding shares of the Company’s Common Stock, plus (y) all of the
      shares of the Company’s Common Stock into which all of the outstanding shares of
      the Series D Preferred Stock can be converted (the “Liquidation Preference
      Amount”) before any payment shall be made or any assets distributed to the
      holders of the Common Stock or any other Junior Stock. If the assets of the
      Company are sufficient to pay in part, but are not sufficient to pay in full,
      the Liquidation Preference Amount payable to the holders of outstanding shares
      of the Series D Preferred Stock and any series of preferred stock or any other
      class of stock on a parity, as to rights on liquidation, dissolution or winding
      up, with the Series D Preferred Stock, then all of said assets available to
      pay
      a part of the Liquidation Preference Amount to the holders of the outstanding
      shares of Series D Preferred Stock and the other classes of stock on a parity
      as
      to rights on liquidation, dissolution or winding up, will be distributed among
      the holders of the Series D Preferred Stock and the other classes of stock
      on a
      parity with the Series D Preferred Stock, if any, ratably in accordance with
      the
      respective amounts that would be payable on such shares if all amounts payable
      thereon were paid in full. The liquidation payment with respect to each
      outstanding fractional share of Series D Preferred Stock shall be equal to
      a
      ratably proportionate amount of the liquidation payment with respect to each
      outstanding share of Series D Preferred Stock. All payments for which this
      Section 4(a) provides shall be in cash, property (valued at its fair market
      value as determined by an independent appraiser reasonably acceptable to the
      holders of a majority of the Series D Preferred Stock), or a combination
      thereof; provided,
      however,
      that no
      cash shall be paid to holders of Junior Stock unless each holder of the
      outstanding shares of Series D Preferred Stock has been paid in cash the full
      Liquidation Preference Amount to which such holder is entitled as provided
      herein. After payment of the full Liquidation Preference Amount to which each
      holder is entitled, such holders of shares of Series D Preferred Stock will
      not
      be entitled to any further participation as such in any distribution of the
      assets of the Company.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

       

              (b)  A
        consolidation or merger of the Company with or into any other corporation
        or
        corporations, or a sale of all or substantially all of the assets of the
        Company, or the effectuation by the Company of a transaction or series of
        related transactions in which more than 50% of the voting shares of the Company
        is disposed of or conveyed, shall not be deemed to be a liquidation,
        dissolution, or winding up within the meaning of this Section 4. In the event
        of
        the merger or consolidation of the Company with or into another corporation,
        subject to Section 5(e)(v), the Series D Preferred Stock shall maintain its
        relative powers, designations and preferences provided for herein and no
        merger
        shall result inconsistent therewith.

    

    

    (c)  Written
      notice of any voluntary or involuntary liquidation, dissolution or winding
      up of
      the affairs of the Company, stating a payment date and the place where the
      distributable amounts shall be payable, shall, to the extent possible, be given
      by mail, postage prepaid, no less than twenty (20) days prior to the payment
      date stated therein, to the holders of record of the Series D Preferred Stock
      at
      their respective addresses as the same shall appear on the books of the
      Company.

    

    5.  Conversion.
      The
      holder of Series D Preferred Stock shall have the following conversion rights
      (the “Conversion Rights”): 

    

    (a)  Right
      to Convert.
      At any
      time on or after the Issuance Date, the holder of any such shares of Series
      D
      Preferred Stock may, at such holder’s option, subject to the limitations set
      forth in Section 7 herein, elect to convert (a “Voluntary Conversion”) all or
      any portion of the shares of Series D Preferred Stock held by such person into
      a
      number of fully paid and nonassessable shares of Common Stock at a conversion
      rate of Ten Thousand (10,000) shares of Common Stock for each share of Series
      D
      Preferred Stock (subject to adjustments set forth in Section 5(e) herein, the
      “Conversion Rate”). The Company shall keep written records of the conversion of
      the shares of Series D Preferred Stock converted by each holder. A holder shall
      be required to deliver the original certificates representing the shares of
      Series D Preferred Stock upon any conversion of the Series D Preferred Stock
      as
      provided in Section 5(b) below. 

    

    (b)  Mechanics
      of Voluntary Conversion.
      The
      Voluntary Conversion of Series D Preferred Stock shall be conducted in the
      following manner:

    

    (i)  Holder's
      Delivery Requirements.
      To
      convert Series D Preferred Stock into full shares of Common Stock on any date
      (the "Voluntary Conversion Date"), the holder thereof shall (A) transmit by
      facsimile (or otherwise deliver), for receipt on or prior to 5:00 p.m., New
      York
      time on such date, a copy of a fully executed notice of conversion in the form
      attached hereto as Exhibit I (the "Conversion Notice"), to the Company; and
      (B)
      as soon as practicable following such Voluntary Conversion Date, surrender
      to a
      common carrier for delivery to the Company the original certificates
      representing the shares of Series D Preferred Stock being converted (or an
      indemnification undertaking with respect to such shares in the case of their
      loss, theft or destruction) (the "Preferred Stock Certificates") and the
      originally executed Conversion Notice.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (ii)  Company's
      Response.
      Upon
      receipt by the Company of a copy of the fully executed Conversion Notice, the
      Company or its designated transfer agent (the "Transfer Agent"), as applicable,
      shall within three (3) business days following the date of receipt by the
      Company of a copy of the fully executed Conversion Notice, issue and deliver
      to
      the Depository Trust Company ("DTC") account on the holder's behalf via the
      Deposit Withdrawal Agent Commission System ("DWAC") as specified in the
      Conversion Notice, registered in the name of the holder or its designee, for
      the
      number of shares of Common Stock to which the holder shall be entitled.
      Notwithstanding the foregoing to the contrary, the Company or its Transfer
      Agent
      shall only be required to issue and deliver the shares to the DTC on a holder's
      behalf via DWAC if (i) such conversion is in connection with a sale, (ii) the
      shares of Common Stock may be issued without restrictive legends and (iii)
      the
      Company and the Transfer Agent are participating in DTC through the DWAC
      system.
      If all
      of the conditions set forth in clauses (i), (ii) and (iii) above are not
      satisfied, the Company shall deliver physical certificates to the holder or
      its
      designee. If the number of shares of Preferred Stock represented by the
      Preferred Stock Certificate(s) submitted for conversion is greater than the
      number of shares of Series D Preferred Stock being converted, then the Company
      shall, as soon as practicable and in no event later than three (3) business
      days
      after receipt of the Preferred Stock Certificate(s) and at the Company's
      expense, issue and deliver to the holder a new Preferred Stock Certificate
      representing the number of shares of Series D Preferred Stock not
      converted.

    

    (iii)  Dispute
      Resolution.
      In the
      case of a dispute as to the arithmetic calculation of the number of shares
      of
      Common Stock to be issued upon conversion, the Company shall cause its Transfer
      Agent to promptly issue to the holder the number of shares of Common Stock
      that
      is not disputed and shall submit the arithmetic calculations to the holder
      via
      facsimile as soon as possible, but in no event later than two (2) business
      days
      after receipt of such holder's Conversion Notice. If such holder and the Company
      are unable to agree upon the arithmetic calculation of the number of shares
      of
      Common Stock to be issued upon such conversion within two (2) business days
      of
      such disputed arithmetic calculation being submitted to the holder, then the
      Company shall within two (2) business days submit via facsimile the disputed
      arithmetic calculation of the number of shares of Common Stock to be issued
      upon
      such conversion to the Company's independent, outside accountant (the
      "Accountant"). The Company shall cause the Accountant to perform the
      calculations and notify the Company and the holder of the results no later
      than
      five (5) business days from the time it receives the disputed calculations.
      The
      Accountant's calculation shall be binding upon all parties absent manifest
      error. The reasonable expenses of such Accountant in making such determination
      shall be paid by the Company, in the event the holder's calculation was correct,
      or by the holder, in the event the Company's calculation was correct, or equally
      by the Company and the holder in the event that neither the Company's or the
      holder's calculation was correct. The period of time in which the Company is
      required to effect conversions or redemptions under this Certificate of
      Designations shall be tolled with respect to the subject conversion or
      redemption pending resolution of any dispute by the Company made in good faith
      and in accordance with this Section 5(b)(iii).

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (iv)  Record
      Holder.
      The
      person or persons entitled to receive the shares of Common Stock issuable upon
      a
      conversion of the Series D Preferred Stock shall be treated for all purposes
      as
      the record holder or holders of such shares of Common Stock on the Conversion
      Date.

     

    (v)  Company's
      Failure to Timely Convert.
      If
      within five (5) business days of the Company's receipt of an executed copy
      of
      the Conversion Notice (so long as the applicable Preferred Stock Certificates
      and original Conversion Notice are received by the Company on or before such
      fifth business day), the Transfer Agent shall fail to issue and deliver to
      a
      holder the number of shares of Common Stock to which such holder is entitled
      upon such holder's conversion of the Series D Preferred Stock or to issue a
      new
      Preferred Stock Certificate representing the number of shares of Series D
      Preferred Stock to which such holder is entitled pursuant to Section 5(b)(ii)
      (a
      "Conversion Failure"), in addition to all other available remedies which such
      holder may pursue hereunder and under any other agreements entered into in
      connection with the issuance of the Series D Preferred Stock (including any
      indemnification provisions contained therein), the Company shall pay additional
      damages to such holder on each week after such fifth (5th) business day that
      such conversion is not timely effected (so long as the applicable Preferred
      Stock Certificates and original Conversion Notice are received by the Company
      on
      or before such fifth business day) in an amount equal 0.5% of the product of
      (A)
      the sum of the number of shares of Common Stock not issued to the holder on
      a
      timely basis pursuant to Section 5(b)(ii) and to which such holder is entitled
      and, in the event the Company has failed to deliver a Preferred Stock
      Certificate to the holder on a timely basis pursuant to Section 5(b)(ii), the
      number of shares of Common Stock issuable upon conversion of the shares of
      Series D Preferred Stock represented by such Preferred Stock Certificate, as
      of
      the last possible date which the Company could have issued such Preferred Stock
      Certificate to such holder without violating Section 5(b)(ii) and (B) the
      Closing Bid and Ask Price (as defined below) of the Common Stock on the last
      possible date which the Company could have issued such Common Stock and such
      Preferred Stock Certificate, as the case may be, to such holder without
      violating Section 5(b)(ii). If the Company fails to pay the additional damages
      set forth in this Section 5(b)(v) within seven (7) business days of the date
      incurred, then such payment shall bear interest at the rate of 1.0% per month
      (pro rated for partial months) until such payments are made. The term "Closing
      Bid and Ask Price" shall mean, for any security as of any date, the last average
      of the closing bid and ask price of such security on the OTC Bulletin Board
      or
      other principal exchange on which such security is traded as reported by
      Bloomberg, or, if no closing bid price is reported for such security by
      Bloomberg, the last closing trade price of such security as reported by
      Bloomberg, or, if no last closing trade price is reported for such security
      by
      Bloomberg, the average of the bid and ask prices of any market makers for such
      security as reported in the "pink sheets" by the National Quotation Bureau,
      Inc.
      If the Closing Bid and Ask Price cannot be calculated for such security on
      such
      date on any of the foregoing bases, the Closing Bid and Ask Price of such
      security on such date shall be the fair market value as determined in good
      faith
      by the Board of Directors of the Company.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (vi)  Buy-In
      Rights.
      In
      addition to any other rights available to the holders of Series D Preferred
      Stock, if within three (3) business days of the Company's receipt of an executed
      copy of the Conversion Notice (so long as the applicable Preferred Stock
      Certificates and original Conversion Notice are received by the Company on
      or
      before such third business day), the Transfer Agent shall fail to issue and
      deliver to a holder the number of shares of Common Stock to which such holder
      is
      entitled upon such holder's conversion of the Series D Preferred Stock (a
      "Conversion Failure"), and if after such date the holder is required by its
      broker to purchase (in an open market transaction or otherwise) shares of Common
      Stock to deliver in satisfaction of a sale by the holder of the shares of Common
      Stock issuable upon conversion of Series D Preferred Stock which the holder
      anticipated receiving upon such conversion (a “Buy-In”), then the Company shall
      (1) pay in cash to the holder the amount by which (x) the holder’s total
      purchase price (including brokerage commissions, if any) for the shares of
      Common Stock so purchased exceeds (y) the amount obtained by multiplying (A)
      the
      number of shares of Common Stock issuable upon conversion of Series D Preferred
      Stock that the Company was required to deliver to the holder in connection
      with
      the conversion at issue times (B) the price at which the sell order giving
      rise
      to such purchase obligation was executed, and (2) deliver to the holder the
      number of shares of Common Stock that would have been issued had the Company
      timely complied with its conversion and delivery obligations hereunder. For
      example, if the holder purchases Common Stock having a total purchase price
      of
      $11,000 to cover a Buy-In with respect to an attempted conversion of shares
      of
      Common Stock with an aggregate sale price giving rise to such purchase
      obligation of $10,000, under clause (1) of the immediately preceding sentence
      the Company shall be required to pay to the holder $1,000. The holder shall
      provide the Company written notice indicating the amounts payable to the holder
      in respect of the Buy-In, together with applicable confirmations and other
      evidence reasonably requested by the Company. Nothing herein shall limit a
      holder’s right to pursue any other remedies available to it hereunder, at law or
      in equity including, without limitation, a decree of specific performance and/or
      injunctive relief with respect to the Company’s failure to timely deliver
      certificates representing shares of Common Stock upon conversion of the Series
      D
      Preferred Stock as required pursuant to the terms hereof. 

    

    (c)  Intentionally
      Omitted.

    

    (d)  Intentionally
      Omitted.

    

    (e)  Adjustments
      of Conversion Rate.

    

    (i)  Adjustments
      for Stock Splits and Combinations.
      If the
      Company shall at any time or from time to time after the Issuance Date, effect
      a
      stock split of the outstanding Common Stock, the Conversion Rate shall be
      proportionately increased. If the Company shall at any time or from time to
      time
      after the Issuance Date, combine the outstanding shares of Common Stock, the
      Conversion Rate shall be proportionately decreased. Any adjustments under this
      Section 5(e)(i) shall be effective at the close of business on the date the
      stock split or combination occurs.

    

    (ii)  Adjustments
      for Certain Dividends and Distributions.
      If the
      Company shall at any time or from time to time after the Issuance Date, make
      or
      issue or set a record date for the determination of holders of Common Stock
      entitled to receive a dividend or other distribution payable in shares of Common
      Stock, then, and in each event, the Conversion Rate shall be increased as of
      the
      time of such issuance or, in the event such record date shall have been fixed,
      as of the close of business on such record date, by multiplying, as applicable,
      the Conversion Rate then in effect by a fraction:

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (1)  the
      numerator of which shall be the total number of shares of Common Stock issued
      and outstanding immediately after such issuance on the close of business on
      such
      record date; and

    

    (2)  the
      denominator of which shall be the total number of shares of Common Stock issued
      and outstanding immediately prior to the time of such issuance on the close
      of
      business on such record date.

    

    (iii)  Adjustment
      for Other Dividends and Distributions.
      If the
      Company shall at any time or from time to time after the Issuance Date, make
      or
      issue or set a record date for the determination of holders of Common Stock
      entitled to receive a dividend or other distribution payable in securities
      of
      the Company other than shares of Common Stock, then, and in each event, an
      appropriate revision to the applicable Conversion Rate shall be made and
      provision shall be made (by adjustments of the Conversion Rate or otherwise)
      so
      that the holders of Series D Preferred Stock shall receive upon conversions
      thereof, in addition to the number of shares of Common Stock receivable thereon,
      the number of securities of the Company which they would have received had
      their
      Series D Preferred Stock been converted into Common Stock on the date of such
      event and had thereafter, during the period from the date of such event to
      and
      including the Conversion Date, retained such securities (together with any
      distributions payable thereon during such period), giving application to all
      adjustments called for during such period under this Section 5(e)(iii) with
      respect to the rights of the holders of the Series D Preferred
      Stock.

    

    (iv)  Adjustments
      for Reclassification, Exchange or Substitution.
      If the
      Common Stock issuable upon conversion of the Series D Preferred Stock at any
      time or from time to time after the Issuance Date shall be changed to the same
      or different number of shares of any class or classes of stock, whether by
      reclassification, exchange, substitution or otherwise (other than by way of
      a
      stock split or combination of shares or stock dividends provided for in Sections
      5(e)(i), (ii) and (iii), or a reorganization, merger, consolidation, or sale
      of
      assets provided for in Section 5(e)(v)), then, and in each event, an appropriate
      revision to the Conversion Rate shall be made and provisions shall be made
      so
      that the holder of each share of Series D Preferred Stock shall have the right
      thereafter to convert such share of Series D Preferred Stock into the kind
      and
      amount of shares of stock and other securities receivable upon reclassification,
      exchange, substitution or other change, by holders of the number of shares
      of
      Common Stock into which such share of Series D Preferred Stock might have been
      converted immediately prior to such reclassification, exchange, substitution
      or
      other change, all subject to further adjustment as provided herein.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (v)  Adjustments
      for Reorganization, Merger, Consolidation or Sales of Assets.
      If at
      any time or from time to time after the Issuance Date there shall be a capital
      reorganization of the Company (other than by way of a stock split or combination
      of shares or stock dividends or distributions provided for in Section 5(e)(i),
      (ii) and (iii), or a reclassification, exchange or substitution of shares
      provided for in Section 5(e)(iv)), or a merger or consolidation of the Company
      with or into another corporation, or the sale of all or substantially all of
      the
      Company’s properties or assets to any other person (an “Organic Change”), then
      as a part of such Organic Change an appropriate revision to the Conversion
      Rate
      shall be made and provision shall be made so that the holder of each share
      of
      Series D Preferred Stock shall have the right thereafter to convert such share
      of Series D Preferred Stock into the kind and amount of shares of stock and
      other securities or property of the Company or any successor corporation
      resulting from the Organic Change which the holder of such share of Series
      D
      Preferred Stock would have received if such share of Series D Preferred Stock
      had been converted prior to such Organic Change.

    

    (vi)  Record
      Date.
      In case
      the Company shall take record of the holders of its Common Stock or any other
      Preferred Stock for the purpose of entitling them to subscribe for or purchase
      Common Stock or Convertible Securities, then the date of the issue or sale
      of
      the shares of Common Stock shall be deemed to be such record date.

    

    (f)  No
      Impairment.
      The
      Company shall not, by amendment of its Certificate of Incorporation or through
      any reorganization, transfer of assets, consolidation, merger, dissolution,
      issue or sale of securities or any other voluntary action, avoid or seek to
      avoid the observance or performance of any of the terms to be observed or
      performed hereunder by the Company, but will at all times in good faith, assist
      in the carrying out of all the provisions of this Section 5 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 D Preferred Stock against
      impairment. In the event a holder shall elect to convert any shares of Series
      D
      Preferred Stock as provided herein, the Company cannot refuse conversion based
      on any claim that such holder or any one associated or affiliated with such
      holder has been engaged in any violation of law, unless (i) an order from the
      Securities and Exchange Commission prohibiting such conversion or (ii) an
      injunction from a court, on notice, restraining and/or adjoining conversion
      of
      all or of said shares of Series D Preferred Stock shall have been
      issued.

    

    (g)  Certificates
      as to Adjustments.
      Upon
      occurrence of each adjustment or readjustment of the Conversion Rate or number
      of shares of Common Stock issuable upon conversion of the Series D Preferred
      Stock pursuant to this Section 5, the Company at its expense shall promptly
      compute such adjustment or readjustment in accordance with the terms hereof
      and
      furnish to each holder of such Series D Preferred Stock a certificate setting
      forth such adjustment and readjustment, showing in detail the facts upon which
      such adjustment or readjustment is based. The Company shall, upon written
      request of the holder of such affected Series D Preferred Stock, at any time,
      furnish or cause to be furnished to such holder a like certificate setting
      forth
      such adjustments and readjustments, the Conversion Rate in effect at the time,
      and the number of shares of Common Stock and the amount, if any, of other
      securities or property which at the time would be received upon the conversion
      of a share of such Series D Preferred Stock. Notwithstanding the foregoing,
      the
      Company shall not be obligated to deliver a certificate unless such certificate
      would reflect an increase or decrease of at least one percent of such adjusted
      amount.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (h)  Issue
      Taxes.
      The
      Company shall pay any and all issue and other taxes, excluding federal, state
      or
      local income taxes, that may be payable in respect of any issue or delivery
      of
      shares of Common Stock on conversion of shares of Series D Preferred Stock
      pursuant hereto; provided,
      however,
      that
      the Company shall not be obligated to pay any transfer taxes resulting from
      any
      transfer requested by any holder in connection with any such
      conversion.

    

    (i)  Notices.
      All
      notices and other communications hereunder shall be in writing and shall be
      deemed given if delivered personally or by facsimile or three (3) business
      days
      following being mailed by certified or registered mail, postage prepaid,
      return-receipt requested, addressed to the holder of record at its address
      appearing on the books of the Company. The Company will give written notice
      to
      each holder of Series D Preferred Stock at least twenty (20) days prior to
      the
      date on which the Company closes its books or takes a record (I) with respect
      to
      any dividend or distribution upon the Common Stock, (II) with respect to any
      pro
      rata subscription offer to holders of Common Stock or (III) for determining
      rights to vote with respect to any Organic Change, dissolution, liquidation
      or
      winding-up and in no event shall such notice be provided to such holder prior
      to
      such information being made known to the public. The Company will also give
      written notice to each holder of Series D Preferred Stock at least twenty (20)
      days prior to the date on which any Organic Change, dissolution, liquidation
      or
      winding-up will take place and in no event shall such notice be provided to
      such
      holder prior to such information being made known to the public.

    

    (j)  Fractional
      Shares.
      No
      fractional shares of Common Stock shall be issued upon conversion of the Series
      D Preferred Stock. In lieu of any fractional shares to which the holder would
      otherwise be entitled, the Company shall pay cash equal to the product of such
      fraction multiplied by the average of the closing bid prices of the Common
      Stock
      for the five (5) consecutive trading immediately preceding the Voluntary
      Conversion Date.

    

    (k)  Reservation
      of Common Stock.
      The
      Company shall, so long as any shares of Series D Preferred Stock are
      outstanding, reserve and keep available out of its authorized and unissued
      Common Stock, solely for the purpose of effecting the conversion of the Series
      D
      Preferred Stock, such number of shares of Common Stock as shall from time to
      time be sufficient to effect the conversion of all of the Series D Preferred
      Stock then outstanding (without giving effect to the limitations set forth
      in
      Section 7 hereof).

    

    (l)  Retirement
      of Series D Preferred Stock.
      Conversion of Series D Preferred Stock shall be deemed to have been effected
      on
      the applicable Voluntary Conversion Date. The Company shall keep written records
      of the conversion of the shares of Series D Preferred Stock converted by each
      holder. A holder shall be required to deliver the original certificates
      representing the shares of Series D Preferred Stock upon any conversion of
      the
      Series D Preferred Stock represented by such certificates.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (m)  Regulatory
      Compliance.
      If any
      shares of Common Stock to be reserved for the purpose of conversion of Series
      D
      Preferred Stock require registration or listing with or approval of any
      governmental authority, stock exchange or other regulatory body under any
      federal or state law or regulation or otherwise before such shares may be
      validly issued or delivered upon conversion, the Company shall, at its sole
      cost
      and expense, in good faith and as expeditiously as possible, endeavor to secure
      such registration, listing or approval, as the case may be.

    

    6.  No
      Preemptive or Redemption Rights.
      Except
      as provided in Section 5 hereof no holder of the Series D Preferred Stock shall
      be entitled to rights to subscribe for, purchase or receive any part of any
      new
      or additional shares of any class, whether now or hereafter authorized, or
      of
      bonds or debentures, or other evidences of indebtedness convertible into or
      exchangeable for shares of any class, but all such new or additional shares
      of
      any class, or any bond, debentures or other evidences of indebtedness
      convertible into or exchangeable for shares, may be issued and disposed of
      by
      the Board of Directors on such terms and for such consideration (to the extent
      permitted by law), and to such person or persons as the Board of Directors
      in
      their absolute discretion may deem advisable. Except as provided in Section
      5
      neither the Company nor the holder has the right to have the Company redeem
      the
      Series D Preferred Stock.

    

    7.  Conversion
      Restriction.
      

     

    (a)  Notwithstanding
      anything to the contrary set forth in Section 5 of this Certificate of
      Designations, at no time may a holder of shares of Series D Preferred Stock
      convert shares of the Series D Preferred Stock if the number of shares of Common
      Stock to be issued pursuant to such conversion would exceed, when aggregated
      with all other shares of Common Stock owned by such holder at such time, the
      number of shares of Common Stock which would result in such holder beneficially
      owning (as determined in accordance with Section 13(d) of the Securities
      Exchange Act of 1934, as amended, and the rules thereunder) more than 4.99%
      of
      all of the Common Stock outstanding at such time; provided, however, that upon
      a
      holder of Series D Preferred Stock providing the Company with sixty-one (61)
      days notice (pursuant to Section 5(i) hereof) (the "Waiver Notice") that such
      holder would like to waive Section 7(a) of this Certificate of Designations
      with
      regard to any or all shares of Common Stock issuable upon conversion of Series
      D
      Preferred Stock, this Section 7(a) shall be of no force or effect with regard
      to
      those shares of Series D Preferred Stock referenced in the Waiver Notice.

     

    (b)  Notwithstanding
      anything to the contrary set forth in Section 5 of this Certificate of
      Designations, at no time may a holder of shares of Series D Preferred Stock
      convert shares of the Series D Preferred Stock if the number of shares of Common
      Stock to be issued pursuant to such conversion would exceed, when aggregated
      with all other shares of Common Stock owned by such holder at such time, would
      result in such holder beneficially owning (as determined in accordance with
      Section 13(d) of the Securities Exchange Act of 1934, as amended, and the rules
      thereunder) in excess of 9.99% of the then issued and outstanding shares of
      Common Stock outstanding at such time; provided, however, that upon a holder
      of
      Series D Preferred Stock providing the Company with a Waiver Notice that such
      holder would like to waive Section 7(b) of this Certificate of Designations
      with
      regard to any or all shares of Common Stock issuable upon conversion of Series
      D
      Preferred Stock, this Section 7(b) shall be of no force or effect with regard
      to
      those shares of Series D Preferred Stock referenced in the Waiver
      Notice.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    8.  Inability
      to Fully Convert.

    

    (a)  
Holder’s
      Option if Company Cannot Fully Convert.
      If,
      upon the Company’s receipt of a Conversion Notice, the Company cannot issue
      shares of Common Stock for any reason, including, without limitation, because
      the Company (x) does not have a sufficient number of shares of Common Stock
      authorized and available or (y) is otherwise prohibited by applicable law or
      by
      the rules or regulations of any stock exchange, interdealer quotation system
      or
      other self-regulatory organization with jurisdiction over the Company or its
      securities, from issuing all of the Common Stock which is to be issued to a
      holder of Series D Preferred Stock pursuant to a Conversion Notice, then the
      Company shall issue as many shares of Common Stock as it is able to issue in
      accordance with such holder’s Conversion Notice and with respect to the
      unconverted Series D Preferred Stock (the “Unconverted Preferred Stock”) the
      holder, solely at such holder’s option, can elect, at any time after receipt of
      notice from the Company that there is Unconverted Preferred Stock, to void
      the
      holder’s Conversion Notice as to the number of shares of Common Stock the
      Company is unable to issue and retain or have returned, as the case may be,
      the
      certificates for the shares of the Unconverted Preferred Stock.

    

    In
      the
      event a Holder shall elect to convert any shares of Series D Preferred Stock
      as
      provided herein, the Company cannot refuse conversion based on any claim that
      such Holder or any one associated or affiliated with such Holder has been
      engaged in any violation of law, violation of an agreement to which such Holder
      is a party or for any reason whatsoever, unless, an injunction from a court,
      on
      notice, restraining and or enjoining conversion of all or any of said shares
      of
      Series D Preferred Stock shall have issued.

    

    (b)  Mechanics
      of Fulfilling Holder’s Election.
      The
      Company shall immediately send via facsimile to a holder of Series D Preferred
      Stock, upon receipt of a facsimile copy of a Conversion Notice from such holder
      which cannot be fully satisfied as described in Section 8(a) above, a notice
      of
      the Company’s inability to fully satisfy such holder’s Conversion Notice (the
“Inability to Fully Convert Notice”). Such Inability to Fully Convert Notice
      shall indicate (i) the reason why the Company is unable to fully satisfy such
      holder’s Conversion Notice and (ii) the number of shares of Series D Preferred
      Stock which cannot be converted.

    

    (c)       
      Pro-rata
      Conversion.
      In the
      event the Company within a period of ten days receives Conversion Notices from
      more than one holder of Series D Preferred Stock and the Company can convert
      some, but not all, of the Series D Preferred Stock required to be converted
      as a
      result of such Conversion Notices, the Company shall convert from each holder
      of
      Series D Preferred Stock electing to have Series D Preferred Stock converted
      within such ten day period, an amount equal to the number of shares of Series
      D
      Preferred Stock the Company can convert in such ten day period multiplied by
      a
      fraction, the numerator of which shall be the number of shares of Series D
      Preferred Stock such holder elected to have converted in such ten day period
      and
      the denominator of which shall be the total number of shares of Series D
      Preferred Stock all holders elected to have converted in such ten day
      period.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    9.  Vote
      to Change the Terms of or Issue Preferred Stock.
      The
      affirmative vote at a meeting duly called for such purpose, or the written
      consent without a meeting, of the holders of not less than three-fourths (3/4)
      of the then outstanding shares of Series D Preferred Stock, shall be required
      for any change to this Certificate of Designation or the Company’s Certificate
      of Incorporation which would amend, alter, change or repeal any of the powers,
      designations, preferences and rights of the Series D Preferred
      Stock.

    

    10.  Lost
      or Stolen Certificates.
      Upon
      receipt by the Company of evidence satisfactory to the Company of the loss,
      theft, destruction or mutilation of any Preferred Stock Certificates
      representing the shares of Series D Preferred Stock, and, in the case of loss,
      theft or destruction, of any indemnification undertaking by the holder to the
      Company and, in the case of mutilation, upon surrender and cancellation of
      the
      Preferred Stock Certificate(s), the Company shall execute and deliver new
      preferred stock certificate(s) of like tenor and date.

    

    11.  Remedies,
      Characterizations, Other Obligations, Breaches and Injunctive Relief.
      The
      remedies provided in this Certificate of Designation shall be cumulative and
      in
      addition to all other remedies available under this Certificate of Designation,
      at law or in equity (including a decree of specific performance and/or other
      injunctive relief), no remedy contained herein shall be deemed a waiver of
      compliance with the provisions giving rise to such remedy and nothing herein
      shall limit a holder’s right to pursue actual damages for any failure by the
      Company to comply with the terms of this Certificate of Designation. Amounts
      set
      forth or provided for herein with respect to conversion and the like (and the
      computation thereof) shall be the amounts to be received by the holder thereof
      and shall not, except as expressly provided herein, be subject to any other
      obligation of the Company (or the performance thereof). The Company acknowledges
      that a breach by it of its obligations hereunder will cause irreparable harm
      to
      the holders of the Series D Preferred Stock and that the remedy at law for
      any
      such breach may be inadequate. The Company therefore agrees that, in the event
      of any such breach or threatened breach, the holders of the Series D Preferred
      Stock shall be entitled, in addition to all other available remedies, to an
      injunction restraining any breach, without the necessity of showing economic
      loss and without any bond or other security being required.

    

    12.  -Specific
      Shall Not Limit General; Construction.
      No
      specific provision contained in this Certificate of Designation shall limit
      or
      modify any more general provision contained herein.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    13.  -Failure
      or Indulgence Not Waiver.
      No
      failure or delay on the part of a holder of Series D Preferred Stock in the
      exercise of any power, right or privilege hereunder shall operate as a waiver
      thereof, nor shall any single or partial exercise of any such power, right
      or
      privilege preclude other or further exercise thereof or of any other right,
      power or privilege.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the undersigned has executed and subscribed this Amended
      Certificate and does affirm the foregoing as true this 21st day of September,
      2007.

     

    
      	 	 	 
	 	
              GLOWPOINT,
                INC.

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name: Michael
              Brandofino
	 	Title: President
              and CEO 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      I

    GLOWPOINT,
      INC.

    CONVERSION
      NOTICE

     

    Reference
      is made to the Certificate of Designations, Preferences and Rights of the Series
      D Preferred Stock of Glowpoint, Inc. (the "Certificate of Designations"). In
      accordance with and pursuant to the Certificate of Designations, the undersigned
      hereby elects to convert the number of shares of Series D Preferred Stock,
      par
      value $0.0001 per share (the "Preferred Shares"), of Glowpoint, Inc., a Delaware
      corporation (the "Company"), indicated below into shares of Common Stock, par
      value $.0001 per share (the "Common Stock"), of the Company, by tendering the
      stock certificate(s) representing the share(s) of Preferred Shares specified
      below as of the date specified below.

     

    
      Date
        of
        Conversion:   ______________________________________________________________________

       

      Number
        of
        Preferred Shares to be converted:    
____________________________________________________

       

      Stock
        certificate no(s). of Preferred Shares to be converted:   _________________________________________

       

      The
        Common Stock have been sold pursuant to the Registration Statement (as defined
        in the Registration Rights Agreement): YES ____ NO____

       

      Please
        confirm the following information:   
_______________________________________________________

       

      Conversion
        Price:  
_________________________________________________________________________

       

      Number
        of
        shares of Common Stock to be issued:  _________________________________________________

       

      Number
        of
        shares of Common Stock beneficially owned or deemed  
____________________________________

       

      beneficially
        owned by the Holder on the Date of Conversion:  
________________________________________

       

      Please
        issue the Common Stock into which the Preferred Shares are being converted
        and,
        if applicable, any check drawn on an account of the Company in the following
        name and to the following address:

       

      Issue
        to:    ____________________________________________________________________________

              ____________________________________________________________________________

              ____________________________________________________________________________

       

      Facsimile
        Number:  
________________________________________________________________________

       

      Name
        of
        bank/broker due to receive the underlying Common Stock:  
___________________________________

       

      Bank/broker's
        four digit "DTC" participant number

      (obtained
        from the receiving bank/broker):  
______________________________________________________

       

      Authorization:    _______________________________________________________________________

                   By:

                   Title:

       

      Dated:  
        __________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]