Document:

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                                                                   EXHIBIT 4.6

                  5.75% CONVERTIBLE SUBORDINATED NOTES DUE 2006
                          REGISTRATION RIGHTS AGREEMENT

                          Dated as of December 14, 1999

                                  by and among

                           General Semiconductor, Inc.

                                       and

                          Donaldson, Lufkin & Jenrette
                             Securities Corporation

                              Chase Securities Inc.

                        Morgan Stanley & Co. Incorporated

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     This Registration Rights Agreement (this "AGREEMENT") is made and entered
into as of December 14, 1999, by and among General Semiconductor, Inc., a
Delaware corporation (the "COMPANY"), and Donaldson, Lufkin & Jenrette
Securities Corporation, Chase Securities Inc. and Morgan Stanley & Co.
Incorporated (each an "INITIAL PURCHASER" and, collectively, the "INITIAL
PURCHASERS"), each of whom has agreed to purchase the Company's 5.75%
Convertible Subordinated Notes due 2006 (the "NOTES") pursuant to the Purchase
Agreement (as defined below).

     This Agreement is made pursuant to the Purchase Agreement, dated
December 8, 1999 (the "PURCHASE AGREEMENT"), by and among the Company and the
Initial Purchasers. In order to induce the Initial Purchasers to purchase the
Notes, the Company has agreed to provide the registration rights set forth in
this Agreement. The execution and delivery of this Agreement is a condition to
the obligations of the Initial Purchasers set forth in the Purchase Agreement.
Capitalized terms used herein and not otherwise defined shall have the meaning
assigned to them the Indenture, dated December 14, 1999, between the Company and
The Bank of New York, as Trustee, relating to the Notes (the "INDENTURE").

     The parties hereby agree as follows:

SECTION 1.      DEFINITIONS

     As used in this Agreement, the following capitalized terms shall have
the following meanings:

     ACT:                     The Securities Act of 1933, as amended.

     AFFILIATE:               As defined in Rule 144 of the Act.

     CERTIFICATED SECURITIES: Definitive Notes, as defined in the Indenture.

     CLOSING DATE:            The date hereof.

     COMMON STOCK:            Common Stock, $.01 par value per share, of
                              the Company.

     COMMISSION:              The Securities and Exchange Commission.

     EFFECTIVENESS DEADLINE:  As defined in Section 3(a) hereof.

     EXCHANGE ACT:            The Securities Exchange Act of 1934, as
                              amended.

     EXEMPT RESALES:          The transactions in which the Initial
                              Purchasers propose to sell the Notes to certain
                              "qualified institutional buyers," as such term is
                              defined in Rule 144A under the Act.

     FILING DEADLINE:         As defined in Section 3(a) hereof.

     HOLDERS:                 As defined in Section 2 hereof.

     LIQUIDATED DAMAGES:      As defined in Section 4 hereof.

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     NOTES:                   The up to $172,500,000 aggregate principal amount
                              of Convertible Subordinated Notes being issued
                              pursuant to the Purchase Agreement.

     PROSPECTUS:              The prospectus included in a Registration
                              Statement at the time such Registration Statement
                              is declared effective, as amended or supplemented
                              by any prospectus supplement and by all other
                              amendments thereto, including post-effective
                              amendments, all material incorporated by reference
                              into such Prospectus and any information
                              previously omitted in reliance upon Rule 430A of
                              the Act.

     RECOMMENCEMENT           DATE: As defined in Section 5(b) hereof.

     REGISTRATION             DEFAULT: As defined in Section 4 hereof.

     REGISTRATION             DEFAULT PERIOD: As defined in Section 4 hereof.

     RULE 144:                Rule 144 promulgated under the Act.

     SHELF                    REGISTRATION STATEMENT: As defined in Section 3
                              hereof.

     SUSPENSION               NOTICE: As defined in Section 5(b) hereof.

     TIA:                     The Trust Indenture Act of 1939 (15 U.S.C. Section
                              77aaa-77bbbb) as in effect on the date of the
                              Indenture.

     TRANSFER RESTRICTED SECURITIES:    The Notes and the shares of
                                        Common Stock into which the Notes are
                                        convertible,upon original issuance
                                        thereof, and at all times subsequent
                                        thereto, until, in the case of any such
                                        Notes or shares of Common Stock, (a) the
                                        date on which such Notes or shares of
                                        Common Stock have been disposed of in
                                        accordance with a Shelf Registration
                                        Statement, (b) the date on which such
                                        Notes or shares of Common Stock are
                                        distributed to the public pursuant to
                                        Rule 144 or are saleable pursuant to
                                        Rule 144 (or similar provisions then
                                        in effect) under the Act or (c) the date
                                        on which such Notes or shares of Common
                                        Stock cease to be outstanding.

SECTION 2.      HOLDERS

     A Person is deemed to be a holder of Transfer Restricted Securities (each,
a "HOLDER") whenever such Person owns Transfer Restricted Securities.

SECTION 3.      SHELF REGISTRATION

         (a) SHELF REGISTRATION. As soon as practicable after the Closing Date
but in no event later than 90 days after the Closing Date (such 90th day,
"FILING DEADLINE"), the Company shall file with the Commission a shelf
registration statement pursuant to Rule 415 under the Act (the "SHELF
REGISTRATION STATEMENT"), relating to all Transfer Restricted Securities, and
shall use its best efforts to cause such Shelf Registration Statement to become
effective on or prior to 180 days after the Closing Date (such 180th day, the
"EFFECTIVENESS DEADLINE").

     The Company shall use its best efforts to keep any Shelf Registration
Statement required by this Section 3(a) continuously effective, supplemented and
amended as required by and subject to the provisions of Section 5(a) hereof to
the extent necessary to ensure that it is available for sales of Transfer
Restricted

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Securities by the Holders thereof entitled to the benefit of this Section 3(a),
and to ensure that it conforms with the requirements of this Agreement, the Act
and the policies, rules and regulations of the Commission as announced from time
to time, for the shorter of (i) two years (as extended pursuant to Section 5(b)
following the Closing Date) or (ii) the date on which all Transfer Restricted
Securities covered by such Shelf Registration Statement have been sold pursuant
thereto.

         (b) PROVISION BY HOLDERS OF CERTAIN INFORMATION IN CONNECTION WITH
THE SHELF REGISTRATION STATEMENT. No Holder of Transfer Restricted Securities
may include any of its Transfer Restricted Securities in any Shelf Registration
Statement pursuant to this Agreement unless and until such Holder furnishes to
the Company in writing, within 20 days after receipt of a request therefor, the
information specified in Item 507 or 508 of Regulation S-K, as applicable, of
the Act for use in connection with any Shelf Registration Statement or
Prospectus or preliminary Prospectus included therein. No Holder of Transfer
Restricted Securities shall be entitled to liquidated damages pursuant to
Section 4 hereof unless and until such Holder shall have provided all such
information. Each selling Holder agrees to promptly furnish additional
information required to be disclosed in order to make the information previously
furnished to the Company by such Holder not materially misleading.

SECTION 4.      LIQUIDATED DAMAGES

     If (i) the Shelf Registration Statement is not filed with the
Commission on or prior to the Filing Deadline, (ii) such Shelf Registration
Statement has not been declared effective by the Commission on or prior to the
Effectiveness Deadline or (iii) such Shelf Registration Statement required by
this Agreement is filed and declared effective but shall thereafter cease to be
effective or fail to be usable for its intended purpose without being succeeded
immediately by a post-effective amendment to such Shelf Registration Statement
that cures such failure and that is itself declared effective immediately (each
such event referred to in clauses (i) through (iii), a "REGISTRATION DEFAULT"
and each period during which a Registration Default has occurred and is
continuing, a "REGISTRATION DEFAULT PERIOD") then the Company hereby agrees to
pay to each Holder of Transfer Restricted Securities affected thereby liquidated
damages ("LIQUIDATED DAMAGES") in an amount (and if such Transfer Restricted
Securities are comprised of Common Stock, such amount shall be calculated on the
basis of the principal amount of Notes from which such Transfer Restricted
Securities had been converted) which shall accrue at a per annum rate of 0.25%
for the first 90 days of the Registration Default Period, at a per annum rate of
0.50% for the second 90 days of the Registration Default Period, at a per annum
rate of 0.75% for the third 90 days of the Registration Default Period and at a
per annum rate of 1.00% thereafter for the remaining portion of the Registration
Default Period. Notwithstanding anything to the contrary set forth herein, (1)
upon filing of the Shelf Registration Statement, in the case of (i) above, (2)
upon the effectiveness of this Shelf Registration Statement, in the case of (ii)
above, or (3) upon the filing of a post-effective amendment to the Shelf
Registration Statement that causes the Shelf Registration Statement to again be
declared effective or made usable, in the case of (iii) above, or (4) once the
Transfer Restricted Securities are eligible for resale under Rule 144(k) of the
Act, the Liquidated Damages payable with respect to the Transfer Restricted
Securities as a result of such clause (i), (ii) or (iii), as applicable, shall
cease, at which time the interest rate shall be restored to its initial rate.

     All accrued Liquidated Damages shall be paid to the Holders entitled
thereto, in the manner provided for the payment of interest in the Indenture, on
each Interest Payment Date as more fully set forth in the Indenture and the
Notes. Notwithstanding the fact that any Notes and/or shares of Common Stock for
which Liquidated Damages are due cease to be Transfer Restricted Securities, all
obligations of the Company to pay Liquidated Damages with respect to any such
Notes and/or shares of Common Stock shall survive until such time as all such
obligations shall have been satisfied in full.

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SECTION 5.      SHELF REGISTRATION PROCEDURES

         (a) PROCEDURES. In connection with the Shelf Registration Statement,
the Company shall:

                (i) use its best efforts to effect such registration to permit
the sale of the Transfer Restricted Securities being sold in accordance with the
intended method or methods of distribution thereof (as indicated in the
information furnished to the Company pursuant to Section 3(b) hereof), and
pursuant thereto the Company will prepare and file with the Commission a Shelf
Registration Statement relating to the registration on any appropriate form
under the Act, which form shall be available for the sale of the Transfer
Restricted Securities in accordance with the intended method or methods of
distribution thereof (including, without limitation, one or more underwritten
offerings) within the time periods and otherwise in accordance with the
provisions hereof. The Company shall not be permitted to include in the Shelf
Registration Statement any securities other than the Transfer Restricted
Securities;

                (ii) use its best efforts to contact all Holders of Transfer
Restricted Securities and notify each Holder of its right to include its
Transfer Restricted Securities in such Shelf Registration Statement;

                (iii) use its best efforts to keep such Shelf Registration
Statement continuously effective and provide all requisite financial statements
for the period specified in Section 3 of this Agreement. Upon the occurrence of
any event that would cause any such Shelf Registration Statement or the
Prospectus contained therein (A) to contain an untrue statement of a material
fact or omit to state any material fact necessary to make the statements therein
not misleading or (B) not to be effective and usable for resale of Transfer
Restricted Securities during the period required by this Agreement, the Company
shall file promptly an appropriate amendment to such Shelf Registration
Statement curing such defect, and, if Commission review is required, use its
best efforts to cause such amendment to be declared effective as soon as
practicable. Notwithstanding the foregoing, the Company may suspend the offering
and sales under the Shelf Registration Statement for up to 60 days in each year
during which such Shelf Registration Statement is required to be effective and
usable hereunder (measured from the date of effectiveness of such Shelf
Registration Statement to successive anniversaries thereof) if (A) either (y)(1)
the Company shall be engaged in a material acquisition or disposition and
(2)(aa) such acquisition or disposition is required to be disclosed in the Shelf
Registration Statement, the related Prospectus, or any amendment or supplement
thereto, or the failure by the Company to disclose such transaction in the Shelf
Registration Statement or related Prospectus, or any amendment or supplement
thereto, as then amended or supplemented, would cause such Shelf Registration
Statement, Prospectus or amendment or supplement thereto, to contain an untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statement therein not misleading, in light of the circumstances
under which they were made, (bb) information regarding the existence of such
acquisition or disposition has not then been publicly disclosed by or on behalf
of the Company and (cc) a majority of the Board of Directors of the Company
determines in the exercise of its good faith judgment that disclosure of such
acquisition or disposition would not be in the best interest of the Company and
would have a material adverse effect on the consummation of such acquisition or
disposition or (z) a majority of the Board of Directors of the Company
determines in the exercise of its good faith judgment that compliance with the
disclosure obligations set forth in this Section 5(a)(iii) would otherwise have
a material adverse effect on the Company and its subsidiaries, taken as a whole,
and (B) the Company notifies the Holders within two business days after such
Board of Directors makes the relevant determination set forth in clause (A);
provided, however, that in each such case the applicable period specified in
Section 3 hereof during with the applicable Shelf Registration Statement is

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required to be kept effective and usable shall be extended by the number of days
during which such effectiveness was suspended pursuant to the foregoing and
Liquidated Damages shall not apply during any period in which the Company is
permitted to suspend offerings and sales under this sentence;

                (iv) prepare and file with the Commission such amendments and
post-effective amendments to the Shelf Registration Statement as may be
necessary to keep such Shelf Registration Statement effective for the applicable
period set forth in Section 3 hereof, cause the Prospectus to be supplemented by
any required Prospectus supplement, and as so supplemented to be filed pursuant
to Rule 424 under the Act, and to comply fully with Rules 424, 430A and 462, as
applicable, under the Act in a timely manner; and comply with the provisions of
the Act with respect to the disposition of all Transfer Restricted Securities
covered by such Shelf Registration Statement during the applicable period in
accordance with the intended method or methods of distribution by the sellers
thereof set forth in such Shelf Registration Statement or supplement to the
Prospectus;

                (v) advise the Holders and underwriters, if any, promptly and,
if requested by such Persons, confirm such advice in writing, (A) when the
Prospectus or any Prospectus supplement or post-effective amendment has been
filed, and, with respect to any Shelf Registration Statement or any
post-effective amendment thereto, when the same has become effective, (B) of any
request by the Commission for amendments to the Shelf Registration Statement or
amendments or supplements to the Prospectus or for additional information
relating thereto, (C) of the issuance by the Commission of any stop order
suspending the effectiveness of the Shelf Registration Statement under the Act
or of the suspension by any state securities commission of the qualification of
the Transfer Restricted Securities for offering or sale in any jurisdiction, or
the initiation of any proceeding for any of the preceding purposes, and (D) of
the existence of any fact or the happening of any event that makes any statement
of a material fact made in the Shelf Registration Statement, the Prospectus, any
amendment or supplement thereto or any document incorporated by reference
therein untrue, or that requires the making of any additions to or changes in
the Shelf Registration Statement in order to make the statements therein not
misleading, or that requires the making of any additions to or changes in the
Prospectus in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. If at any time the
Commission shall issue any stop order suspending the effectiveness of the Shelf
Registration Statement, or any state securities commission or other regulatory
authority shall issue an order suspending the qualification or exemption from
qualification of the Transfer Restricted Securities under state securities or
Blue Sky laws, the Company shall use its best efforts to obtain the withdrawal
or lifting of such order at the earliest possible time;

                (vi) subject to Section 5(a)(iii), if any fact or event
contemplated by Section 5(v)(D) above shall exist or have occurred, prepare a
supplement or post-effective amendment to the Shelf Registration Statement or
related Prospectus or any document incorporated therein by reference or file any
other required document so that, as thereafter delivered to the purchasers of
Transfer Restricted Securities, the Prospectus will not contain an untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading;

                (vii) furnish to each Holder named in any Shelf Registration
Statement or Prospectus, who shall certify to the Company that they have a
present intention to sell Transfer Restricted Securities, and underwriter, if
any, in connection with such sale before filing with the Commission, copies of
any Shelf Registration Statement or any Prospectus included therein or any
amendments or supplements to any such Shelf Registration Statement or Prospectus
(including all documents incorporated by reference after the initial filing of
such Shelf Registration Statement), except that the foregoing provision will not
apply to

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regular periodic reports filed with the Commission on Forms 10-Q or 10-K or
Current Reports on Form 8-K (or any similar successor forms), or exhibits to any
such documents unless requested, which documents will be subject to the review
and comment of such Persons in connection with such sale, if any, for a period
of at least five Business Days, and the Company will not file any such Shelf
Registration Statement or Prospectus or any amendment or supplement to any such
Shelf Registration Statement or Prospectus (including all such documents
incorporated by reference) to which such Persons shall reasonably object within
five Business Days after the receipt thereof;

                (viii) promptly prior to the filing of any document that is to
be incorporated by reference into a Shelf Registration Statement or Prospectus,
provide copies of such document to the Holders except that the foregoing
provision will not apply to regular periodic reports filed with the Commission
on Forms 10-Q or 10-K or Current Reports on Form 8-K (or any similar successor
forms), or exhibits to any such documents unless requested, and underwriters, if
any, in connection with such sale, make the Company's representatives available
for discussion of such document and other customary due diligence matters, and
include such information in such document prior to the filing thereof as such
Holders may reasonably request;

                (ix) make available at reasonable times for inspection by the
Holders and underwriters, if any, and any attorney or accountant retained by
such Holders, who shall certify to the Company that they have a present
intention to sell Transfer Restricted Securities, or underwriters, if any, all
financial and other records, pertinent corporate documents of the Company and
cause the Company's officers, directors and employees to supply all information
reasonably requested by any such Holder, underwriters, if any, attorney or
accountant in connection with such Shelf Registration Statement or any
post-effective amendment thereto subsequent to the filing thereof and prior to
its effectiveness which, in the reasonable judgment of counsel for the Company,
are necessary to conduct a reasonable investigation within the meaning of
Section 11 of the Act; PROVIDED, HOWEVER, that each such party shall be required
to maintain in confidence and not disclose to any other person any information
or records designated in writing by the Company as being confidential, until
such time as (A) such information becomes a matter of public record (whether by
virtue of its inclusion in such registration statement or otherwise), or (B)
such person shall be required, or shall deem it advisable, so to disclose such
information pursuant to a subpoena or order of any court or other governmental
agency or body having jurisdiction over the matter (subject to the requirements
of such order, and only after such person shall have given the Company prior
written notice thereof), or (C) such information is required to be set forth in
such registration statement or the prospectus included therein or in an
amendment to such registration statement or an amendment or supplement to such
prospectus in order that such registration statement, prospectus, amendment or
supplement, as the case may be, does not contain an untrue statement of a
material fact or omit to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading in light of
the circumstances then existing;

                (x) if requested by any Holders or underwriters, if any, in
connection with such sale, promptly include in any Shelf Registration Statement
or Prospectus, pursuant to a supplement or post-effective amendment if
necessary, such information as such Holders or underwriters, if any, may
reasonably request to have included therein, including, without limitation,
information relating to the "Plan of Distribution" of the Transfer Restricted
Securities; and make all required filings of such Prospectus supplement or
post-effective amendment as soon as practicable after the Company is notified of
the matters to be included in such Prospectus supplement or post-effective
amendment;

                (xi) furnish to each Holder and underwriter, if any, without
charge, at least one copy of the Shelf Registration Statement, as first filed
with the Commission, and of each amendment thereto,

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including, at the request of such Holder, all documents incorporated by
reference therein and all exhibits (including, at the request of such Holder,
exhibits incorporated therein by reference);

                (xii) deliver to each Holder and underwriter, if any, without
charge, as many copies of the Prospectus (including each preliminary prospectus)
and any amendment or supplement thereto as such Persons reasonably may request;
the Company hereby consents to the use (in accordance with law) of the
Prospectus and any amendment or supplement thereto by each Holder and each
underwriter, if any, in connection with the offering and the sale of the
Transfer Restricted Securities covered by the Prospectus or any amendment or
supplement thereto;

                (xiii) upon the request of Holders of 25% or more in principal
amount (or number of shares, as the case may be) of Transfer Restricted
Securities or an initial purchaser in the case where an initial purchaser holds
Transfer Restricted Securities acquired as part of its initial placement, if
any, enter into such agreements (including underwriting agreements) and make
such representations and warranties and take all such other actions in
connection therewith in order to expedite or facilitate the disposition of the
Transfer Restricted Securities pursuant to any Shelf Registration Statement
contemplated by this Agreement as may be reasonably requested by such Person in
connection with any sale or resale pursuant to any applicable Shelf Registration
Statement and in such connection, the Company shall:

         (A) furnish (or in the case of paragraphs (2), (3) and (4) below, use
             its best efforts to cause to be furnished) to each Holder or
             underwriter, if any, upon the effectiveness of the Shelf
             Registration Statement:

             (1)  a certificate, dated such date, signed on behalf of the
                  Company by (x) the President or any Vice President and (y) a
                  principal financial or accounting officer of the Company,
                  confirming, as of the date thereof, the matters set forth in
                  Sections 6(aa), 9(a) and 9(b) of the Purchase Agreement and
                  such other similar matters as the Holders may reasonably
                  request;

             (2)  an opinion, dated the date effectiveness of the Shelf
                  Registration Statement, of outside counsel for the Company
                  covering matters similar to those set forth in Exhibit A of
                  the Purchase Agreement and such other matters as the selling
                  Holders may reasonably request, including the ultimate
                  paragraph of Exhibit A relating to the Shelf Registration
                  Statement;

             (3)  an opinion, dated the date effectiveness of the Shelf
                  Registration Statement, of general counsel for the Company
                  covering matters similar to those set forth in Exhibit B of
                  the Purchase Agreement and such other matter as the selling
                  Holders may reasonably request; and

             (4)  a customary comfort letter, dated as of the date of
                  effectiveness of the Shelf Registration Statement from the
                  Company's independent accountants, in the customary form and
                  covering matters of the type customarily covered in comfort
                  letters to underwriters in connection with underwritten
                  offerings, and affirming the matters set forth in the comfort
                  letters delivered pursuant to Section 9(g) of the Purchase
                  Agreement, provided, however, the Company is not obligated to
                  pay the costs and expenses of counsel for the selling
                  shareholders; and

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        (B) deliver such other documents and certificates as may be reasonably
             requested by the Holders and underwriters, if any, to evidence
             compliance with the matters set forth in clause (A) above and with
             any customary conditions contained in any agreement entered into by
             the Company pursuant to this clause (xiii) which satisfy the above
             requirement;

                (xiv) prior to any public offering of Transfer Restricted
Securities, cooperate with the Holders, underwriters, if any, and their
respective counsel in connection with the registration and qualification of the
Transfer Restricted Securities under the securities or Blue Sky laws of such
jurisdictions as such Persons may request and do any and all other acts or
things necessary or advisable to enable the disposition in such jurisdictions of
the Transfer Restricted Securities covered by the applicable Registration
Statement; PROVIDED, HOWEVER, that the Company shall not be required to register
or qualify as a foreign corporation where it is not now so qualified but for the
requirement of this clause (xiv) or to take any action that would subject it to
the service of process in suits or to taxation, other than as to matters and
transactions relating to the Shelf Registration Statement, in any jurisdiction
where it is not now so subject, or make any changes to its certificate of
incorporation or by-laws or any agreement between the Company and its
stockholders;

                (xv) in connection with any sale of Transfer Restricted
Securities that will result in such securities no longer being Transfer
Restricted Securities, cooperate with the Holders to facilitate the timely
preparation and delivery of certificates representing Transfer Restricted
Securities to be sold and not bearing any restrictive legends; and to register
such Transfer Restricted Securities in such denominations and such names as the
Holders may request at least two Business Days prior to such sale of Transfer
Restricted Securities;

                (xvi) (A) list all shares of Common Stock covered by such Shelf
Registration Statement on any securities exchange on which the Common Stock is
then listed or (B) authorize for quotation on the National Association of
Securities Dealers Automated Quotation System ("NASDAQ") or the National Market
System of NASDAQ all shares of Common Stock covered by such Shelf Registration
Statement if the Common Stock is then so authorized for quotation;

                (xvii) use its best efforts to cause the disposition of the
Transfer Restricted Securities covered by the Shelf Registration Statement to be
registered with or approved by such other governmental agencies or authorities
as may be necessary to enable the seller or sellers thereof to consummate the
disposition of such Transfer Restricted Securities, subject to the proviso
contained in clause (xiv) above;

                (xviii) provide a CUSIP number for all Transfer Restricted
Securities not later than the effective date of a Shelf Registration Statement
covering such Transfer Restricted Securities and provide the Trustee under the
Indenture with printed certificates for the Transfer Restricted Securities which
are in a form eligible for deposit with the Depository Trust Company;

                (xix) otherwise use its best efforts to comply with all
applicable rules and regulations of the Commission, and make generally available
to its security holders with regard to any applicable Registration Statement, as
soon as practicable, a consolidated earnings statement meeting the requirements
of Rule 158 (which need not be audited) covering a twelve-month period beginning
after the effective date of the Registration Statement (as such term is defined
in paragraph (c) of Rule 158 under the Act), provided that the obligations of
this clause (xix) shall be satisfied by the timely filing of quarterly and
annual reports on Forms 10-Q and 10-K under the Exchange Act;

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                (xx) if underwritten, make appropriate officers of the Company
available to the underwriters for meetings with prospective purchasers of the
Transfer Restricted Securities and prepare and present to potential investors
customary "road show" material in a manner consistent with other new issuances
of other securities similar to the Transfer Restricted Securities;

                (xxi) cause the Indenture to be qualified under the TIA not
later than the effective date of the Shelf Registration Statement required by
this Agreement and, in connection therewith, cooperate with the Trustee and the
Holders to effect such changes to the Indenture as may be required for such
Indenture to be so qualified in accordance with the terms of the TIA; and
execute and use its best efforts to cause the Trustee to execute, all documents
that may be required to effect such changes and all other forms and documents
required to be filed with the Commission to enable such Indenture to be so
qualified in a timely manner; and

                (xxii) provide promptly to each Holder upon request each
document filed with the Commission pursuant to the requirements of Section 13 or
Section 15(d) of the Exchange Act.

                (xxiii) the Company may require each seller of Transfer
Restricted Securities as to which any registration is being effected to furnish
to it such information regarding such seller as may be required by the staff of
the Commission to be included in the Shelf Registration Statement; the Company
may exclude from such registration the Transfer Restricted Securities of any
seller who unreasonably fails to furnish such information within a reasonable
period of time after receiving such request; and the Company shall have no
obligation to register under the Securities Act the Transfer Restricted
Securities of any seller who fails to furnish such information as provided in
this paragraph.

         (b) RESTRICTIONS ON HOLDERS. Each Holder agrees by acquisition of a
Transfer Restricted Security that, upon receipt of the notice referred to in
Section 5(a)(v)(C) or any notice from the Company of the existence of any fact
of the kind described in Section 5(a)(v)(D) hereof (in each case, a "SUSPENSION
NOTICE"), such Holder will forthwith discontinue disposition of Transfer
Restricted Securities pursuant to the applicable Registration Statement until
(i) such Holder's has received copies of the supplemented or amended Prospectus
contemplated by Section 5(a)(vi) hereof, or (ii) such Holder is advised in
writing by the Company that the use of the Prospectus may be resumed, and has
received copies of any additional or supplemental filings that are incorporated
by reference in the Prospectus (in each case, the "RECOMMENCEMENT DATE"). Each
Holder receiving a Suspension Notice hereby agrees that it will either (i)
destroy any Prospectuses, other than permanent file copies, then in such
Holder's possession which have been replaced by the Company with more recently
dated Prospectuses or (ii) deliver to the Company (at the Company's expense) all
copies, other than permanent file copies, then in such Holder's possession of
the Prospectus covering such Transfer Restricted Securities that was current at
the time of receipt of the Suspension Notice. The time period regarding the
effectiveness of the Shelf Registration Statement set forth in Section 3 hereof,
shall be extended by a number of days equal to the number of days in the period
from and including the date of delivery of the Suspension Notice to the date of
delivery of the Recommencement Date.

SECTION 6.      REGISTRATION EXPENSES

         (a) All expenses incident to the Company's performance of or compliance
with this Agreement will be borne by the Company, regardless of whether a Shelf
Registration Statement required by this Agreement becomes effective, including
without limitation: (i) all registration and filing fees and expenses; (ii) all
fees and expenses of compliance with federal securities and state Blue Sky or
securities laws; (iii) all

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expenses of printing (including printing certificates for the Common Stock to be
issued upon conversion of the Notes and printing of Prospectuses), messenger and
delivery services and telephone; (iv) all fees and disbursements of counsel for
the Company and the reasonable fees and disbursements of not more than one
counsel chosen by the Holders of a majority in principal amount (number of
shares, if applicable) of the Transfer Restricted Securities for whose benefit
the Shelf Registration Statement is being prepared; (v) all application and
filing fees in connection with listing the Common Stock on a national securities
exchange or automated quotation system pursuant to the requirements hereof; and
(vi) all fees and disbursements of independent certified public accountants of
the Company (including the expenses of any special audit and comfort letters
required by or incident to such performance). Notwithstanding the foregoing, the
Holders of Transfer Restricted Securities being registered shall pay all agency
fees and commissions and underwriting discounts and commissions and transfer
taxes, if any, attributable to the sale of such Transfer Restricted Securities.

     The Company will, in any event, bear its internal expenses (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expenses of any annual audit and the
fees and expenses of any Person, including special experts, retained by the
Company.

     (b) In connection with any Shelf Registration Statement required by this
Agreement, the Company will reimburse the Initial Purchasers and the Holders
selling Transfer Restricted Securities pursuant to the "Plan of Distribution"
contained in the Shelf Registration Statement, for the reasonable fees and
disbursements of not more than one counsel chosen by the Holders of a majority
in principal amount (number of shares, if applicable) of the Transfer Restricted
Securities for whose benefit such Shelf Registration Statement is being
prepared.

SECTION 7.      INDEMNIFICATION

     (a) The Company agrees to indemnify and hold harmless each Holder, its
directors, its officers and each Person, if any, who controls such Holder
(within the meaning of Section 15 of the Act and Section 20 of the Exchange
Act), from and against any and all losses, claims, damages, liabilities or
judgments, (including without limitation, any reasonable legal or other expenses
incurred in connection with investigating or defending any matter, including any
action that could give rise to any such losses, claims, damages, liabilities or
judgments) caused by any untrue statement or alleged untrue statement of a
material fact contained in any Shelf Registration Statement, preliminary
prospectus or Prospectus (or any amendment or supplement thereto) provided by
the Company to any Holder or any prospective purchaser of registered Notes or
registered shares of Common Stock or caused by any omission or alleged omission
to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, except insofar as such losses,
claims, damages, liabilities or judgments are caused by an untrue statement or
omission or alleged untrue statement or omission that is based upon information
relating to any of the Holders furnished in writing to the Company by any of the
Holders or such untrue statement or omission or alleged untrue statement or
omission is contained in the preliminary Prospectus and is corrected in the
final Prospectus.

     (b) Each Holder of Transfer Restricted Securities agrees, severally and not
jointly, to indemnify and hold harmless the Company and its directors and
officers, and each person, if any, who controls (within the meaning of Section
15 of the Act or Section 20 of the Exchange Act) the Company, to the same extent
as the foregoing indemnity from the Company set forth in Section 7(a) above, but
only with reference to information relating to such Holder furnished in writing
to the Company by such Holder expressly for use

                                       10
<PAGE>

in any Registration Statement. In case any action or proceeding shall be brought
against the Company, or any of its directors or officers or any such controlling
person in respect of which indemnity may be sought against a Holder of Transfer
Restricted Securities, such Holder shall have the rights and duties given the
Company pursuant to this Section 7, and the Company, its directors or such
controlling person shall have the rights and duties given to each Holder by the
preceding paragraph of this Section 7. In no event shall any Holder, its
directors, its officers or any Person, if any, who controls such Holder be
liable or responsible for any amount in excess of the amount by which the total
amount received by such Holder with respect to its sale of Transfer Restricted
Securities pursuant to a Shelf Registration Statement exceeds (i) the amount
paid by such Holder for such Transfer Restricted Securities and (ii) the amount
of any damages that such Holder, its directors, its officers or any Person, if
any, who controls such Holder has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission.

     (c) In case any action shall be commenced involving any person in respect
of which indemnity may be sought pursuant to Section 7(a) or 7(b) (the
"INDEMNIFIED PARTY"), the indemnified party shall promptly notify the person
against whom such indemnity may be sought (the "INDEMNIFYING PERSON") in writing
and the indemnifying party shall assume the defense of such action, including
the employment of counsel reasonably satisfactory to the indemnified party and
the payment of all fees and expenses of such counsel, as incurred (except that
in the case of any action in respect of which indemnity may be sought pursuant
to both Sections 7(a) and 7(b), a Holder shall not be required to assume the
defense of such action pursuant to this Section 7(c), but may employ separate
counsel and participate in the defense thereof, but the fees and expenses of
such counsel, except as provided below, shall be at the expense of the Holder).
Any indemnified party shall have the right to employ separate counsel in any
such action and participate in the defense thereof, but the fees and expenses of
such counsel shall be at the expense of the indemnified party unless (i) the
employment of such counsel shall have been specifically authorized in writing by
the indemnifying party, (ii) the indemnifying party shall have failed to assume
the defense of such action or employ counsel reasonably satisfactory to the
indemnified party or (iii) the named parties to any such action (including any
impleaded parties) include both the indemnified party and the indemnifying
party, and the indemnified party shall have been advised by such counsel that
there may be one or more legal defenses available to it which are different from
or additional to those available to the indemnifying party (in which case the
indemnifying party shall not have the right to assume the defense of such action
on behalf of the indemnified party). In any such case, the indemnifying party
shall not, in connection with any one action or separate but substantially
similar or related actions in the same jurisdiction arising out of the same
general allegations or circumstances, be liable for the fees and expenses of
more than one separate firm of attorneys (in addition to any local counsel) for
all indemnified parties and all such fees and expenses, to the extent
reasonable, shall be reimbursed as they are incurred. Such firm shall be
designated in writing by a majority of the Holders, in the case of the parties
indemnified pursuant to Section 7(a), and by the Company, in the case of parties
indemnified pursuant to Section 7(b). The indemnifying party shall not be
obligated to indemnify and hold harmless any indemnified party from and against
any losses, claims, damages, liabilities and judgments by reason of any
settlement of any action effected without the indemnifying party's written
consent. No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement or compromise of, or consent to the
entry of judgment with respect to, any pending or threatened action in respect
of which the indemnified party is or could have been a party and indemnity or
contribution may be or could have been sought hereunder by the indemnified
party, unless such settlement, compromise or judgment (i) includes an
unconditional release of the indemnified party from all liability on claims that
are or could have been the subject matter of such action and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to
act, by or on behalf of the indemnified party.

                                       11
<PAGE>

     (d) To the extent that the indemnification provided for in this Section 7
is unavailable to an indemnified party in respect of any losses, claims,
damages, liabilities or judgments referred to therein, then each indemnifying
party, in lieu of indemnifying such indemnified party, shall contribute to the
amount paid or payable by such indemnified party as a result of such losses,
claims, damages, liabilities or judgments (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company, on the one
hand, and the Holders, on the other hand, from their sale of Transfer Restricted
Securities or (ii) if the allocation provided by clause 7(d)(i) is not permitted
by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause 7(d)(i) above but also the relative
fault of the Company on the one hand, and of the Holders, on the other hand, in
connection with the statements or omissions which resulted in such losses,
claims, damages, liabilities or judgments, as well as any other relevant
equitable considerations. The relative fault of the Company, on the one hand,
and of the Holders, on the other hand, shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to
information supplied by the Company, on the one hand, or by the Holders, on the
other hand, and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.

     The Company and each Holder agree that it would not be just and equitable
if contribution pursuant to this Section 7(d) were determined by pro rata
allocation (even if the Holders were treated as one entity for such purpose) or
by any other method of allocation which does not take account of the equitable
considerations referred to in the immediately preceding paragraph. The amount
paid or payable by an indemnified party as a result of the losses, claims,
damages, liabilities or judgments referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses incurred by such indemnified party in
connection with investigating or defending any matter, including any action that
could have given rise to such losses, claims, damages, liabilities or judgments.
Notwithstanding the provisions of this Section 7, no Holder or its related
Indemnified Holders shall be required to contribute, in the aggregate, any
amount in excess of the amount by which the total received by such Holder with
respect to the sale of its Transfer Restricted Securities pursuant to a
Registration Statement exceeds (i) the amount paid by such Holder for such
Transfer Restricted Securities and (ii) the amount of any damages which such
Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Holders' obligations to contribute pursuant to this
Section 7(d) are several in proportion to the respective principal amount of
Transfer Restricted Securities held by each of the Holders hereunder and not
joint.

SECTION 8.            RULE 144A AND RULE 144

     The Company agrees with each Holder, for so long as any Transfer Restricted
Securities remain outstanding and during any period in which the Company (i) is
not subject to Section 13 or 15(d) of the Exchange Act, to make available, upon
request of any Holder of Transfer Restricted Securities, to any Holder or
beneficial owner of Transfer Restricted Securities in connection with any sale
thereof and any prospective purchaser of Transfer Restricted Securities
designated by such Holder or beneficial owner, the information required by Rule
144(d)(4) under the Act in order to permit resales of such Transfer Restricted
Securities pursuant to Rule 144A, and (ii) is subject to Section 13 or 15(d) of
the Exchange Act, to make all filings required thereby in a timely manner in
order to permit resales of such Transfer Restricted Securities pursuant to Rule
144.

                                       12
<PAGE>

SECTION  9.                UNDERWRITTEN REGISTRATIONS

     (a) If any of the Transfer Restricted Securities covered by any Shelf
Registration Statement are to be sold in an underwritten offering, the
investment banker or investment bankers and manager or managers that will
administer the offering will be selected by the Holders of a majority in amount
of such Transfer Restricted Securities included in such offering, subject to the
consent of the Company (which will not be unreasonably withheld or delayed).

     No Holder of Transfer Restricted Securities may participate in any
underwritten registration hereunder unless such Holder (i) agrees to sell its
Transfer Restricted Securities on the basis reasonably provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve
such arrangements and (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents required
under the terms of such underwriting arrangements.

     (b) Each Holder of Transfer Restricted Securities agrees, if requested
(pursuant to a timely written notice) by the managing underwriters in an
underwritten offering made pursuant to a Shelf Registration Statement, not to
effect any private sale or distribution (including a sale pursuant to Rule
144(k) and Rule 144A, but excluding non-public sales to any of its affiliates,
officers, directors, employees and controlling persons) of any of the Notes, in
the case of an underwritten offering of the Notes, or the Common Stock, in the
case of an underwritten offering of shares of Common Stock constituting Transfer
Restricted Securities, during the period beginning 10 days prior to, and ending
90 days after, the closing date of such underwritten offering.

     The foregoing provisions of Section 9(b) shall not apply to any Holder of
Transfer Restricted Securities if such Holder is prevented by applicable statute
or regulation from entering into any such agreement.

     (c) If any of the Transfer Restricted Securities covered by any Shelf
Registration are to be sold in an underwritten offering, the underwriters, their
controlling persons and their respective officers, directors, employees,
representatives and agents shall be entitled to indemnity (substantially similar
to the indemnity set forth in Section 7 of the Agreement) from the Company and
the Holders, which indemnity may be set forth in an underwriting agreement.

SECTION 10.           MISCELLANEOUS

     (a) REMEDIES. The Company acknowledges and agrees that any failure by the
Company to comply with its obligations under Section 3 hereof may result in
material irreparable injury to the Initial Purchasers or the Holders for which
there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of any such failure,
the Initial Purchasers or any Holder may obtain such relief as may be required
to specifically enforce the Company's obligations under Section 3 hereof. The
Company further agrees to waive the defense in any action for specific
performance that a remedy at law would be adequate.

     (b) NO INCONSISTENT AGREEMENTS. The Company will not, on or after the date
of this Agreement, enter into any agreement with respect to its securities that
is inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. The Company has not previously
entered into any agreement (which has not expired or been terminated) granting
any registration rights with respect to its securities to any Person. The rights
granted to the Holders hereunder do not in any

                                       13
<PAGE>

way conflict with and are not inconsistent with the rights granted to the
holders of the Company's securities under any agreement in effect on the date
hereof.

     (c) NO PIGGYBACKS ON SHELF REGISTRATION STATEMENT. The Company shall not
grant to any of its security holders (other than the holders of Transfer
Restricted Securities in such capacity) the right to include any of its
securities in any Shelf Registration Statement provided for in this Agreement
other than the Transfer Restricted Securities.

     (d) AMENDMENTS AND WAIVERS. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to or departures from
the provisions hereof may not be given unless (i) in the case of Section 4
hereof and this Section 10(d)(i), the Company has obtained the written consent
of Holders of all outstanding Transfer Restricted Securities and (ii) in the
case of all other provisions hereof, the Company has obtained the written
consent of Holders of a majority of the outstanding principal amount (and
shares, if applicable) of Transfer Restricted Securities (excluding Transfer
Restricted Securities held by the Company or its Affiliates).

     (e) THIRD PARTY BENEFICIARY. The Holders shall be third party beneficiaries
to the agreements made hereunder between the Company, on the one hand, and the
Initial Purchasers, on the other hand, and shall have the right to enforce such
agreements directly to the extent they may deem such enforcement necessary or
advisable to protect its rights or the rights of Holders hereunder.

     (f) NOTICES. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand-delivery, first-class mail
(registered or certified, return receipt requested), telex, telecopier, or air
courier guaranteeing overnight delivery:

                (i) if to a Holder, at the address set forth on the records of
     the Registrar under the Indenture, with a copy to the Registrar under the
     Indenture; and

                (ii) if to the Company:

                     General Semiconductor, Inc
                     Ten Melville Park Road
                     Melville, New York 11747
                     Telecopier No.: (516) 847-3209
                     Attention: Stephen B.Paige, Esq.

                     With a copy to:

                     Fried, Frank, Harris, Shriver & Jacobson
                     One New York Plaza
                     New York, New York 10004
                     Telecopier No.: (212) 859-8587
                     Attention:  Lois Herzeca, Esq.

     All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five Business
Days after being deposited in the mail, postage prepaid, if mailed; when receipt
acknowledged, if telecopied; and on the next business day, if timely delivered
to an air courier guaranteeing overnight delivery.

                                       14
<PAGE>

     Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee at the
address specified in the Indenture.

     (g) SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties, including
without limitation and without the need for an express assignment, subsequent
Holders of Transfer Restricted Securities; PROVIDED, that nothing herein shall
be deemed to permit any assignment, transfer or other disposition of Transfer
Restricted Securities in violation of the terms hereof or of the Purchase
Agreement or the Indenture. If any transferee of any Holder shall acquire
Transfer Restricted Securities in any manner, whether by operation of law or
otherwise, such Transfer Restricted Securities shall be held subject to all of
the terms of this Agreement, and by taking and holding such Transfer Restricted
Securities such Person shall be conclusively deemed to have agreed to be bound
by and to perform all of the terms and provisions of this Agreement, including
the restrictions on resale set forth in this Agreement and, if applicable, the
Purchase Agreement, and such Person shall be entitled to receive the benefits
hereof.

     (h) COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

     (i) HEADINGS. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     (j) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE
CONFLICT OF LAW RULES THEREOF.

     (k) SEVERABILITY. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

     (l) ENTIRE AGREEMENT. This Agreement is intended by the parties as a
final expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein
with respect to the registration rights granted with respect to the Transfer
Restricted Securities. This Agreement supersedes all prior agreements and
understandings between the parties with respect to such subject matter.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first written above.

                                         GENERAL SEMICONDUCTOR, INC.

                                         By:  /s/ Ronald A. Ostertag
                                              ------------------------------
                                              Name:  Ronald A. Ostertag
                                              Title: Chairman, President and
                                                     Chief Financial Officer

DONALDSON, LUFKIN & JENRETTE

                                       15
<PAGE>

      SECURITIES CORPORATION
CHASE SECURITIES INC.
MORGAN STANLEY & CO. INCORPOTATED
By:   DONALDSON, LUFKIN & JENRETTE
      SECURITIES CORPORATION

By:   /s/ William Wilson
      ---------------------
      Name:  William Wilson
      Title: Vice President<PAGE>

                           CERTIFICATE OF DESIGNATION

                                       OF

                 SERIES E CUMULATIVE CONVERTIBLE PREFERRED STOCK

                                ($.001 par value)

                            30,000 Shares Authorized

                                       OF

                           VENTURI TECHNOLOGIES, INC.

         Venturi Technologies, Inc., a Nevada corporation (the
"Corporation"), pursuant to authority conferred on the Board of Directors of
the Corporation by its Articles of Incorporation, as amended, and in
accordance with the provisions of Section 78.1955 of the Nevada Revised
Statutes ("NRS"), certifies that the Board of Directors of the Corporation,
at a meeting duly called and held pursuant to the NRS, duly adopted the
following resolution providing for the establishment and issuance of a series
of Preferred Stock to be designated as "Series E Cumulative Convertible
Preferred Stock" as follows:

         RESOLVED, that, pursuant to the authority expressly granted and
vested in the Board of Directors of this Corporation in accordance with the
provisions of its Articles of Incorporation, as amended, a series of the
preferred stock of the Corporation be and hereby is established, consisting
of 30,000 shares, to be designated as "Series E Cumulative Convertible
Preferred Stock" (the "Preferred Stock"); the Board of Directors be and
hereby is authorized to issue such shares of Preferred Stock from time to
time and for such consideration and on such terms as the Board of Directors
shall determine; and subject to the limitations provided by law and by the
Articles of Incorporation, as amended, the powers, designations, preferences
and relative, participating, option or other special rights of, and the
qualifications, limitations or restrictions upon, the Preferred Stock shall
be as follows:

         Section 1.  Definitions.

         "Common Stock" means, collectively, the Corporation's common stock,
par value $.001 per share.

         "Conversion Stock" means shares of the Corporation's Common Stock
issued or issuable upon conversion of the Preferred Stock, whether or not a
share of Preferred Stock is presently convertible; provided, that if there is
a change such that the securities issuable upon conversion of the Preferred
Stock are issued by an entity other than the Corporation or there is a change
in the class of securities so issuable, then the term "Conversion Stock"
shall mean one share of the

Venturi Preferred Stock                                 Jan 11, 2000 - 11:40 AM
                                      - 1 -

<PAGE>

security issuable upon conversion of the Preferred Stock if such security is
issuable in shares, or shall mean the smallest unit in which such security is
issuable if such security is not issuable in shares.

         "Junior Securities" means any of the Corporation's Common Stock.

         "Liquidation Value" of any Share, as defined in Section 2A hereof,
as of any particular date shall be equal to $100.00.

         "Person" means an individual, a partnership, a corporation, an
association, a joint stock company, a trust, a joint venture, an
unincorporated organization and a governmental entity or any department,
agency or political subdivision thereof.

         "Pari Passu Securities" means the outstanding shares of the
Corporation's Series A, Series B, Series C and Series D preferred stock.

         "Redemption Date" as to any Share means the date specified in the
notice of any redemption at the Corporation's option or the applicable date
specified herein in the case of any other redemption; provided that no such
date shall be a Redemption Date unless the Liquidation Value of such Share
(plus all accrued and unpaid dividends thereon) is actually paid in full on
such date, and if not so paid in full, the Redemption Date shall be the date
on which such amount is fully paid.

         Section 2.  Dividends.

         2A. General Obligation. When and as declared by the Corporation's
Board of Directors and to the extent permitted under the NRS, the Corporation
shall pay preferential dividends in cash to the holders of the Preferred
Stock as provided in this Section. Except as otherwise provided herein,
dividends on each share of the Preferred Stock shall accrue, whether or not
declared or paid, on a daily basis at the rate of 6% per annum (computed on
the basis of a year of 360 days for the actual number of days elapsed) of the
sum of the Liquidation Value thereof plus all accrued and unpaid dividends
thereon from and including the date of issuance of such share of Preferred
Stock to and including the first to occur of (i) the date on which the
Liquidation Value of such share of Preferred Stock (plus all accrued and
unpaid dividends thereon) is paid to the holder thereof in connection with
the liquidation of the Corporation or the Redemption Price of such share of
Preferred Stock (plus all accrued and unpaid dividends thereon) is paid to
the holder thereof in connection with the redemption of such share of
Preferred Stock by the Corporation, (ii) the date on which such share of
Preferred Stock is converted into shares of Conversion Stock hereunder, or
(iii) the date on which such share of Preferred Stock is otherwise acquired
by the Corporation. Such dividends shall accrue whether or not they have been
declared and whether or not there are profits, surplus or other funds of the
Corporation legally available for the payment of dividends. Such dividends
shall be cumulative such that all accrued and unpaid dividends shall be fully
paid or declared with funds irrevocably set apart for payment before any
dividend, distribution or payment may be made with respect to any Junior
Securities. The Corporation shall not make any

Venturi Preferred Stock                                 Jan 11, 2000 - 11:40 AM
                                      - 2 -

<PAGE>

dividend, distribution or payment with respect any Pari Passu Securities
unless a ratable amount is paid toward any accrued and unpaid dividends on
the Preferred Stock. The date on which the Corporation initially issues any
share of Preferred Stock shall be deemed to be its "date of issuance"
regardless of the number of times transfer of such share of Preferred Stock
is made on the stock records maintained by or for the Corporation and
regardless of the number of certificates which may be issued to evidence such
share of Preferred Stock.

         2B. Dividend Reference Date. All dividends which have accrued on the
Preferred Stock shall be payable on March 1, June1, September 1 and December
1 of each year, beginning March 1, 2000 (collectively, the "Dividend Payment
Dates").

         2C. Distribution of Partial Dividend Payments. Except as otherwise
provided herein, if at any time the Corporation pays less than the total
amount of dividends then accrued with respect to the Preferred Stock, such
payment shall be distributed ratably among the holders thereof based upon the
number of shares of Preferred Stock held by each such holder.

         2D. Payment of Stock Dividends. Notwithstanding any other provision
of this Section 2, in the sole discretion of the holder, any dividends
accruing on the Preferred Stock may be paid in lieu of cash dividends by the
issuance of additional shares of Preferred Stock (including fractional
shares) having an aggregate Liquidation Value at the time of such payment
equal to the amount of the dividend to be paid; provided, that if the
Corporation pays less than the total amount of dividends then accrued on the
Preferred Stock in the form of additional shares, such payment in shares of
Preferred Stock shall be made pro rata among the holders of Preferred Stock
based upon the aggregate accrued but unpaid dividends on the Preferred Stock
held by each such holder. If and when any Preferred Stock is issued under
this paragraph 2D for the payment of accrued dividends, such Preferred Stock
shall be deemed to be validly issued and outstanding and fully paid and
nonassessable.

         2E. Participating Dividends. In the event that the Corporation
declares or pays any dividends upon the Common Stock (whether payable in
cash, securities or other property) other than dividends payable solely in
shares of Common Stock, the Corporation shall also declare and pay to the
holders of the Preferred Stock at the same time that it declares and pays
such dividends to the holders of the Common Stock, the dividends which would
have been declared and paid with respect to the Common Stock issuable upon
conversion of the Preferred Stock had all of the outstanding Preferred Stock
been converted immediately prior to the record date for such dividend, or if
no record date is fixed, the date as of which the record holders of Common
Stock entitled to such dividends are to be determined.

         Section 3.  Liquidation.

         Upon any liquidation, dissolution or winding up of the Corporation
(whether voluntary or involuntary), each holder of Preferred Stock shall be
entitled to be paid ratably together with the Pari Passu Securities, before
any distribution or payment is made upon any Junior Securities, an

Venturi Preferred Stock                                 Jan 11, 2000 - 11:40 AM
                                      - 3 -

<PAGE>

amount in cash equal to the aggregate Liquidation Value (plus all accrued and
unpaid dividends) of all shares of Preferred Stock held by such holder. If
upon any such liquidation, dissolution or winding up of the Corporation, the
Corporation's assets to be distributed among the holders of the Preferred
Stock are insufficient to permit payment to such holders of the aggregate
amount which they are entitled to be paid under this Section 3, then the
entire assets available to be distributed shall be distributed ratably among
such holders based upon the aggregate Liquidation Value (plus all accrued and
unpaid dividends) of the Preferred Stock held by each such holder. Prior to
the liquidation, dissolution or winding up of the Corporation, the
Corporation shall declare for payment all accrued and unpaid dividends with
respect to the Preferred Stock, but only to the extent of funds of the
Corporation legally available for the payment of dividends. The Corporation
shall mail written notice of such liquidation, dissolution or winding up, not
less than 60 days prior to the payment date stated therein, to each record
holder of Preferred Stock. Neither the consolidation or merger of the
Corporation into or with any other entity or entities, nor the sale or
transfer by the Corporation of less than substantially all of its assets, nor
the reduction of the capital stock of the Corporation, shall be deemed to be
a liquidation, dissolution or winding up of the Corporation within the
meaning of this Section.

         Section 4.  Priority of Preferred Stock on Dividends and Redemptions.

         4A. No Payments With Respect to Junior Securities. So long as any
Preferred Stock remains outstanding, without the prior written consent of the
holders of two-thirds of the outstanding shares of Preferred Stock, the
Corporation shall not, nor shall it permit any Subsidiary to, redeem,
purchase or otherwise acquire directly or indirectly any Junior Securities,
nor shall the Corporation directly or indirectly pay or declare any dividend
or make any distribution upon any Junior Securities. So long as any Preferred
Stock remains outstanding, without the prior written consent of the holders
of two-thirds of the outstanding shares of Preferred Stock, the Corporation
shall not, nor shall it permit any Subsidiary to, redeem, purchase or
otherwise acquire directly or indirectly any Pari Passu Securities, nor shall
the Corporation directly or indirectly pay or declare any dividend or make
any distribution upon any Pari Passu Securities, unless a ratable redemption,
purchase, dividend or distribution is made with respect to the Preferred
Stock.

         4B. No Issuance of Senior or Pari Passu Securities. The Preferred
Stock shall be senior to or on a parity with all other series of capital
stock or other equity securities of the Corporation as to rights to dividends
and payments upon liquidation, redemption or otherwise. For so long as any
Preferred Stock remains outstanding, without the prior written consent of the
holders of two-thirds of the outstanding shares of the Preferred Stock, the
Corporation shall not amend its Articles of Incorporation or take any other
action to approve or issue any capital stock (including increasing the number
of authorized shares of Preferred Stock) of the Corporation that is senior or
pari passu in right to the payment of dividends, payment upon liquidation,
redemption or otherwise to the Preferred Stock. Additionally, so long as any
Preferred Stock remains outstanding, without the prior written consent of the
holders of two-thirds of the outstanding shares of Preferred Stock, the
Corporation shall not amend its Articles of Incorporation or take any other

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<PAGE>

action that would alter the rights, preferences or privileges of the
Preferred Stock as in effect on the date of the original issuance of the
Preferred Stock.

         Section 5.  Redemption.

         5A. Optional Redemptions. The Corporation may at any time redeem all
or any portion of Preferred Stock then outstanding. On any such redemption,
the Corporation shall pay a price per Share equal to 125% of the Liquidation
Value thereof, plus all accrued and unpaid dividends thereon, and all
penalties which have accrued with respect to any of the Preferred Stock under
this Designation and under the Purchase Agreement (the "Redemption Price").
On any such redemption, all shares of Preferred Stock shall immediately
become convertible in full, notwithstanding any other provision of this
Designation.

         5B. Redemption Payment. For each share of Preferred Stock which is
to be redeemed, the Corporation shall be obligated on the Redemption Date to
pay to the holder thereof (upon surrender by such holder at the Corporation's
principal office of the certificate representing such share of Preferred
Stock) an amount in immediately available funds equal to the Redemption Price
of such share of Preferred Stock. If the funds of the Corporation legally
available for redemption of Preferred Stock on any Redemption Date are
insufficient to redeem the total number of shares of Preferred Stock to be
redeemed on such date, those funds which are legally available shall be used
to redeem the maximum possible number of shares of Preferred Stock ratably
among the holders of the Preferred Stock to be redeemed based upon the
aggregate Liquidation Value of Preferred Stock (plus all accrued and unpaid
dividends thereon) held by each such holder. At any time thereafter when
additional funds of the Corporation are legally available for the redemption
of Shares, such funds shall immediately be used to redeem the balance of the
Preferred Stock which the Corporation has become obligated to redeem on any
Redemption Date but which it has not redeemed. Prior to any redemption of
Preferred Stock, the Corporation shall declare for payment all accrued and
unpaid dividends with respect to the shares of Preferred Stock which are to
be redeemed, but only to the extent of funds of the Corporation legally
available for the payment of dividends.

         5C. Notice of Redemption. The Corporation shall mail written notice
of each redemption of any Preferred Stock to each record holder thereof not
less than 30 days prior to the date on which such redemption is to be made.
Irrespective of mailing any notice of redemption which relates to a
redemption at the Corporation's option, the Corporation shall not become
obligated to redeem the total number of shares Preferred Stock specified in
such notice at the time of redemption specified therein if such notice
contains conditions precedent which must be satisfied prior to redemption. In
case fewer than the total number of shares of Preferred Stock represented by
any certificate are redeemed, a new certificate representing the number of
unredeemed shares of Preferred Stock shall be issued to the holder thereof
without cost to such holder within ten (10) business days after surrender of
the certificate representing the redeemed shares of Preferred Stock.

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<PAGE>

         5D. Determination of the Number of Each Holder's Shares to be
Redeemed. Except as otherwise provided herein, the number of shares of
Preferred Stock to be redeemed from each holder thereof in redemptions
hereunder shall be the number of shares determined by multiplying the total
number of shares of Preferred Stock to be redeemed times a fraction, the
numerator of which shall be the total number of shares of Preferred Stock
then held by such holder and the denominator of which shall be the total
number of shares of Preferred Stock then outstanding.

         5E. Dividends After Redemption Date. No share of Preferred Stock is
entitled to any dividends accruing after the date on which the Redemption
Price is paid to the holder thereof. On such date all rights of the holder of
such share of Preferred Stock shall cease, and such share of Preferred Stock
shall not be deemed to be outstanding.

         5F. Redeemed or Otherwise Acquired Shares. Any Preferred Stock which
are redeemed or otherwise acquired by the Corporation shall be canceled, and
shall be deemed to be undesignated authorized and unissued preferred shares.

         5G. Other Redemptions or Acquisitions. The Corporation shall not
redeem or otherwise acquire any Preferred Stock, except as expressly
authorized herein or pursuant to a purchase offer made pro-rata to all
holders of Preferred Stock on the basis of the number of shares of Preferred
Stock owned by each such holder.

         5H. Accrued Dividends Must be Paid Prior to Any Redemption. The
Corporation may not, under an optional redemption, redeem any Preferred
Stock, unless all dividends accrued on the outstanding Preferred Stock
through the immediately preceding Dividend Reference Date have been paid in
full.

         Section 6. Voting Rights. The holders of the Preferred Stock shall
be entitled to notice of all stockholders' meetings, and except as otherwise
required by applicable law or set forth below, the holders of the Preferred
Stock shall be entitled to vote on all matters submitted to the stockholders
for a vote together with the holders of the Common Stock voting together as a
single class with each share of Common Stock entitled to one vote per share
and each share of Preferred Stock entitled to one vote for each share of
Common Stock issuable upon conversion of such share of Preferred Stock as of
the record date for such vote or, if no record date is specified, as of the
date of such vote.

         Section 7.  Conversion.

         7A.  Conversion Procedure.

                  (i) During the time periods indicated in the table below,
any holder of Preferred Stock may convert up to that percentage of the
Preferred Stock indicated in the table below (including any fraction of a
share) held by such holder into a number of shares of Conversion Stock

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<PAGE>

computed by dividing (A) the product obtained by multiplying the number of
Shares to be converted by $100 and, by (B) the Conversion Price then in
effect:

<TABLE>
<S>                                                                                      <C>
On or after the date of this Certificate of Designation                                    25%
On or after the date which is 30 days after the date of this Certificate of Designation    50%
On or after the date which is 60 days after the date of this Certificate of Designation    75%
On or after the date which is 90 days after the date of this Certificate of Designation   100%
</TABLE>

                  (ii) Each conversion of Preferred Stock shall be deemed to
have been effected as of the close of business on the date on which the
certificate or certificates representing the Preferred Stock to be converted
have been surrendered at the principal office of the Corporation. At such
time as such conversion has been effected, the rights of the holder of such
Preferred Stock as such holder shall cease and the Person or Persons in whose
name or names any certificate or certificates for shares of Conversion Stock
are to be issued upon such conversion shall be deemed to have become the
holder or holders of record of the shares of Conversion Stock represented
thereby.

                  (iii) The conversion rights of any Share subject to
redemption hereunder shall terminate on the Redemption Date for such Share
unless the Corporation has failed to pay to the holder thereof the Redemption
Price.

                  (iv) As soon as possible after a conversion has been
effected (but in any event within two (2) business days in the case of
subparagraph (a) below), the Corporation shall deliver to the converting
holder:

                  (a) a certificate or certificates representing the number of
         shares of Conversion Stock issuable by reason of such conversion in
         such name or names and such denomination or denominations as the
         converting holder has specified;

                  (b) payment in an amount equal to all accrued dividends with
         respect to each Share converted, which have not been paid prior
         thereto, provided, however, that such accrued dividends may, at the
         holder's option, be converted into an additional number of shares of
         Conversion Stock by dividing the amount of unpaid dividends by the
         Conversion Price; and

                  (c) a certificate representing any shares of Preferred Stock
         which were represented by the certificate or certificates delivered to
         the Corporation in connection with such conversion but which were not
         converted.

                  (v) If the Corporation is not permitted under applicable
law to pay any portion of the accrued dividends on the Preferred Stock being
converted, the Corporation may (i) pay such dividends to the converting
holder as soon thereafter as funds of the Corporation are legally available
for such payment or (ii) such portion of the unpaid dividends may, at the
Corporation's

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<PAGE>

option, be converted into an additional number of shares of Conversion Stock
determined by dividing the amount of the unpaid dividends to be applied for
such purpose, by the Conversion Price.

                  (vi) Upon conversion of each Share of Preferred Stock, the
Corporation shall take all such actions as are necessary in order to insure
that the Conversion Stock issuable with respect to such conversion shall be
validly issued, fully paid and nonassessable.

                  (vii) The Corporation shall assist and cooperate with any
holder of Preferred Stock required to make any governmental filings or obtain
any governmental approval prior to or in connection with any conversion of
Preferred Stock hereunder (including, without limitation, making any filings
required to be made by the Corporation).

                  (viii) If any fractional interest in a share of Conversion
Stock would, except for the provisions of this subparagraph, be deliverable
upon any conversion of the Preferred Stock, the Corporation, in lieu of
delivering the fractional share therefor, shall round such fraction to the
nearest whole share.

                  (ix) The Corporation shall at all times reserve and keep
available out of its authorized but unissued shares of Conversion Stock,
solely for the purpose of issuance upon the conversion of the Preferred
Stock, such number of shares of Conversion Stock issuable upon the conversion
of all outstanding Preferred Stock. All shares of Conversion Stock which are
so issuable shall, when issued, be duly and validly issued, fully paid and
nonassessable and free from all taxes, liens and charges. The Corporation
shall take all such actions as may be necessary to assure that all such
shares of Conversion Stock may be so issued without violation of any
applicable law or governmental regulation or any requirements of any domestic
securities exchange upon which shares of Conversion Stock may be listed
(except for official notice of issuance which shall be immediately delivered
by the Corporation upon each such issuance).

                  (x) If the shares of Conversion Stock issuable by reason of
such conversion of Preferred Stock are convertible into or exchangeable for
any other stock or securities of the Corporation, the Corporation shall, at
the converting holder's option, upon surrender of the Shares to be converted
by such holder as provided above together with any notice, statement or
payment required to effect such conversion or exchange of Conversion Stock,
deliver to such holder or as otherwise specified by such holder a certificate
or certificates representing the stock or securities into which the shares of
Conversion Stock issuable by reason of such conversion are so convertible or
exchangeable, registered in such name or names and in such denomination or
denominations as such holder has specified.

         7B. Conversion Price. As used herein, the term "Conversion Price"
shall mean 80% of the the average of the three lowest daily bid prices for
the Preferred Stock quoted on the NASDAQ Stock Market System or other market
or system upon which reported or quoted during the 15 trading days preceding
the date as of which such Conversion Price is being determined.

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<PAGE>

         7C. Effect on Conversion Price of Certain Events. For purposes of
determining the adjusted Conversion Price under paragraph 7B, the following
shall be applicable:

                  (i) Issuance of Rights or Options. If the Corporation in
any manner grants or sells any Options and the price per share for which
Common Stock is issuable upon the exercise of such Options, or upon
conversion or exchange of any Convertible Securities issuable upon exercise
of such Options, is less than the Conversion Price in effect immediately
prior to the time of the granting or sale of such Options, then the total
maximum number of shares of Common Stock issuable upon the exercise of such
Options or upon conversion or exchange of the total maximum amount of such
Convertible Securities issuable upon the exercise of such Options shall be
deemed to be outstanding and to have been issued and sold by the Corporation
at the time of the granting or sale of such Options for such price per share.
For purposes of this paragraph, the "price per share for which Common Stock
is issuable" shall be determined by dividing (a) the total amount, if any,
received or receivable by the Corporation as consideration for the granting
or sale of such Options, plus the minimum aggregate amount of additional
consideration payable to the Corporation upon exercise of all such Options,
plus in the case of such Options which relate to Convertible Securities, the
minimum aggregate amount of additional consideration, if any, payable to the
Corporation upon the issuance or sale of such Convertible Securities and the
conversion or exchange thereof, by (b) the total maximum number of shares of
Common Stock issuable upon the exercise of such Options or upon the
conversion or exchange of all such Convertible Securities issuable upon the
exercise of such Options.

                  (ii) Issuance of Convertible Securities. If the Corporation
in any manner issues or sells any Convertible Securities and the price per
share for which Common Stock is issuable upon conversion or exchange thereof
is less than the Conversion Price in effect immediately prior to the time of
such issue or sale, then the maximum number of shares of Common Stock
issuable upon conversion or exchange of such Convertible Securities shall be
deemed to be outstanding and to have been issued and sold by the Corporation
at the time of the issuance or sale of such Convertible Securities for such
price per share. For the purposes of this paragraph, the "price per share for
which Common Stock is issuable" shall be determined by dividing (a) the total
amount received or receivable by the Corporation as consideration for the
issue or sale of such Convertible Securities, plus the minimum aggregate
amount of additional consideration, if any, payable to the Corporation upon
the conversion or exchange thereof, by (b) the total maximum number of shares
of Common Stock issuable upon the conversion or exchange of all such
Convertible Securities. No further adjustment of the Conversion Price shall
be made when Common Stock is actually issued upon the conversion or exchange
of such Convertible Securities.

                  (iii) Change in Option Price or Conversion Rate. If the
purchase price provided for in any Options, the additional consideration, if
any, payable upon the conversion or exchange of any Convertible Securities or
the rate at which any Convertible Securities are convertible into or
exchangeable for Common Stock changes at any time, the Conversion Price in
effect at the time of such change shall be immediately adjusted to the
Conversion Price which would have been in effect at such time had such
Options or Convertible Securities still outstanding provided for such

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<PAGE>

changed purchase price, additional consideration or conversion rate, as the
case may be, at the time initially granted, issued or sold; provided that if
such adjustment would result in an increase of the Conversion Price then in
effect, such adjustment shall not be effective until 30 days after written
notice thereof has been given by the Corporation to all holders of the
Preferred Stock. For purposes of paragraph 7C, if the terms of any Option or
Convertible Security which was outstanding as of the date of issuance of the
Preferred Stock are changed in the manner described in the immediately
preceding sentence, then such Option or Convertible Security and the Common
Stock deemed issuable upon exercise, conversion or exchange thereof shall be
deemed to have been issued as of the date of such change; provided that no
such change shall at any time cause the Conversion Price hereunder to be
increased.

                  (iv) Treatment of Expired Options and Unexercised
Convertible Securities. Upon the expiration of any Option or the termination
of any right to convert or exchange any Convertible Security without the
exercise of any such Option or right, the Conversion Price then in effect
hereunder shall be adjusted immediately to the Conversion Price which would
have been in effect at the time of such expiration or termination had such
Option or Convertible Security, to the extent outstanding immediately prior
to such expiration or termination, never been issued; provided that if such
expiration or termination would result in an increase in the Conversion Price
then in effect, such increase shall not be effective until 30 days after
written notice thereof has been given by the Corporation to all holders of
the Preferred Stock. For purposes of paragraph 7C, the expiration or
termination of any Option or Convertible Security which was outstanding as of
the date of issuance of the Preferred Stock shall not cause the Conversion
Price hereunder to be adjusted unless, and only to the extent that, a change
in the terms of such Option or Convertible Security caused it to be deemed to
have been issued after the date of issuance of the Preferred Stock.

                  (v) Calculation of Consideration Received. If any Common
Stock, Option or Convertible Security is issued or sold or deemed to have
been issued or sold for cash, the consideration received therefor shall be
deemed to be the amount received by the Corporation therefor (net of
discounts, commissions and related expenses). If any Common Stock, Option or
Convertible Security is issued or sold for a consideration other than cash,
the amount of the consideration other than cash received by the Corporation
shall be the fair value of such consideration, except where such
consideration consists of securities, in which case the amount of
consideration received by the Corporation shall be the Conversion Price
determined as of the date of receipt. If any Common Stock, Option or
Convertible Security is issued to the owners of the non-surviving entity in
connection with any merger in which the Corporation is the surviving
corporation, the amount of consideration therefor shall be deemed to be the
fair value of such portion of the net assets and business of the
non-surviving entity as is attributable to such Common Stock, Option or
Convertible Security, as the case may be. The fair value of any consideration
other than cash and securities shall be determined jointly by the Corporation
and the holders of two-thirds of the outstanding Preferred Stock. If such
parties are unable to reach agreement within a reasonable period of time, the
fair value of such consideration shall be determined by an independent
appraiser experienced in valuing such type of consideration jointly selected
by the Corporation and the holders of two-thirds of the outstanding Preferred
Stock. The determination

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<PAGE>

of such appraiser shall be final and binding upon the parties, and the fees
and expenses of such appraiser shall be borne by the Corporation.

                  (vi) Integrated Transactions. In case any Option is issued
in connection with the issue or sale of other securities of the Corporation,
together comprising one integrated transaction in which no specific
consideration is allocated to such Option by the parties thereto, the Option
shall be deemed to have been issued for a consideration of $.01.

                  (vii) Treasury Shares. The number of shares of Common Stock
outstanding at any given time shall not include shares owned or held by or
for the account of the Corporation or any Subsidiary, and the disposition of
any shares so owned or held shall be considered an issue or sale of Common
Stock.

                  (viii) Record Date. If the Corporation takes a record of
the holders of Common Stock for the purpose of entitling them (a) to receive
a dividend or other distribution payable in Common Stock, Options or in
Convertible Securities or (b) to subscribe for or purchase Common Stock,
Options or Convertible Securities, then such record date shall be deemed to
be the date of the issue or sale of the shares of Common Stock deemed to have
been issued or sold upon the declaration of such dividend or upon the making
of such other distribution or the date of the granting of such right of
subscription or purchase, as the case may be.

         7D. Subdivision or Combination of Common Stock. If the Corporation
at any time subdivides (by any stock split, stock dividend, recapitalization
or otherwise) one or more classes of its outstanding shares of Common Stock
into a greater number of shares, the Conversion Price in effect immediately
prior to such subdivision shall be proportionately reduced, and if the
Corporation at any time combines (by reverse stock split or otherwise) one or
more classes of its outstanding shares of Common Stock into a smaller number
of shares, the Conversion Price in effect immediately prior to such
combination shall be proportionately increased.

         7E. Reorganization, Reclassification, Consolidation, Merger or Sale.
Any recapitalization, reorganization, reclassification, consolidation,
merger, sale of all or substantially all of the Corporation's assets or other
transaction, in each case which is effected in such a manner that the holders
of Common Stock are entitled to receive (either directly or upon subsequent
liquidation) stock, securities or assets with respect to or in exchange for
Common Stock, is referred to herein as an "Organic Change". Prior to the
consummation of any Organic Change, the Corporation shall make appropriate
provisions (in form and substance reasonably satisfactory to the holders of
two-thirds of the Preferred Stock then outstanding) to insure that each of
the holders of Preferred Stock shall thereafter have the right to acquire and
receive, in lieu of or in addition to (as the case may be) the shares of
Conversion Stock immediately theretofore acquirable and receivable upon the
conversion of such holder's Preferred Stock, such shares of stock, securities
or assets as such holder would have received in connection with such Organic
Change if such holder had converted its Preferred Stock immediately prior to
such Organic Change. In each such case, the Corporation shall also make
appropriate provisions (in form and

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<PAGE>

substance satisfactory to the holders of two-thirds of the Preferred Stock
then outstanding) to insure that the provisions of this Section 7 and
Sections 8 and 9 hereof shall thereafter be applicable to the Preferred Stock
(including, in the case of any such consolidation, merger or sale in which
the successor entity or purchasing entity is other than the Corporation, an
immediate adjustment of the Conversion Price to the value for the Common
Stock reflected by the terms of such consolidation, merger or sale, and a
corresponding immediate adjustment in the number of shares of Conversion
Stock acquirable and receivable upon conversion of Preferred Stock, if the
value so reflected is less than the Conversion Price in effect immediately
prior to such consolidation, merger or sale). The Corporation shall not
effect any such consolidation, merger or sale, unless prior to the
consummation thereof, the successor entity (if other than the Corporation)
resulting from consolidation or merger or the entity purchasing such assets
assumes by written instrument (in form and substance satisfactory to the
holders of two-thirds of the Preferred Stock then outstanding), the
obligation to deliver to each such holder such shares of stock, securities or
assets as, in accordance with the foregoing provisions, such holder may be
entitled to acquire.

         7F. Certain Events. If any event occurs of the type contemplated by
the provisions of this Section 7 but not expressly provided for by such
provisions (including, without limitation, the granting of stock appreciation
rights, phantom stock rights or other rights with equity features), then the
Corporation's Board of Directors shall make an appropriate adjustment in the
Conversion Price so as to protect the rights of the holders of Preferred
Stock; provided that no such adjustment shall increase the Conversion Price
as otherwise determined pursuant to this Section 7 or decrease the number of
shares of Conversion Stock issuable upon conversion of each Share.

         7G.  Notices.

                  (i) Immediately upon any adjustment of the Conversion
Price, the Corporation shall give written notice thereof to all holders of
Preferred Stock, setting forth in reasonable detail and certifying the
calculation of such adjustment.

                  (ii) The Corporation shall give written notice to all
holders of Preferred Stock at least 20 days prior to the date on which the
Corporation closes its books or takes a record (a) with respect to any
dividend or distribution upon Common Stock, (b) with respect to any pro rata
subscription offer to holders of Common Stock or (c) for determining rights
to vote with respect to any Organic Change, dissolution or liquidation.

                  (iii) The Corporation shall also give written notice to the
holders of Preferred Stock at least 20 days prior to the date on which any
Organic Change shall take place.

         Section 8.  Liquidating Dividends.

         If the Corporation declares or pays a dividend upon the Common Stock
payable otherwise than in cash out of earnings or earned surplus (determined
in accordance with generally accepted accounting principles, consistently
applied) except for a stock dividend

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<PAGE>

payable in shares of Common Stock (a "Liquidating Dividend"), then the
Corporation shall pay to the holders of Preferred Stock at the time of
payment thereof the Liquidating Dividends which would have been paid on the
shares of Conversion Stock that would have been issued had such Preferred
Stock been converted immediately prior to the date on which a record is taken
for such Liquidating Dividend, or, if no record is taken, the date as of
which the record holders of Common Stock entitled to such dividends are to be
determined.

         Section 9.  Purchase Rights.

         If at any time the Corporation grants, issues or sells any Options,
Convertible Securities or rights to purchase stock, warrants, securities or
other property pro rata to the record holders of any class of Common Stock
(the "Purchase Rights"), then each holder of Preferred Stock shall be
entitled to acquire, upon the terms applicable to such Purchase Rights, the
aggregate Purchase Rights which such holder could have acquired if such
holder had held the number of shares of Conversion Stock acquirable upon
conversion of such holder's Preferred Stock immediately before the date on
which a record is taken for the grant, issuance or sale of such Purchase
Rights, or if no such record is taken, the date as of which the record
holders of Common Stock are to be determined for the grant, issue or sale of
such Purchase Rights.

         Section 10.  Events of Noncompliance.

         10A.  Definition. An Event of Noncompliance shall have occurred if:

                  (i) the Corporation fails to pay on any Dividend Payment
Date the full amount of dividends then accrued on the Preferred Stock,
whether or not such payments are legally permissible or are prohibited by any
agreement to which the Corporation is subject;

                  (ii) the Corporation fails to make any redemption payment
(whether following the giving of notice pursuant to paragraph 4C or
otherwise) with respect to the Preferred Stock which it is required to make
hereunder, whether or not such payment is legally permissible or is
prohibited by any agreement to which the Corporation is subject;

                  (iii) the Corporation breaches or otherwise fails to
perform or observe any material provision contained herein, in the Purchase
Agreement or in the Related Documents (as defined in the Purchase Agreement)
and (other than with respect to Section 8.1 or 8.2(l) of the Purchase
Agreement, or Section 7 hereof, the breach of or failure to perform which
shall result in an immediate Event of Noncompliance) such failure is not
cured within fifteen (15) days after the occurrence thereof;

                  (iv) any representation or warranty contained in the
Purchase Agreement or required to be furnished to any holder of Preferred
Stock pursuant to the Purchase Agreement, or any information contained in
writing required to be furnished by the Corporation or any Subsidiary to

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<PAGE>

any holder of Preferred Stock, is false or misleading in any material respect
on the date made or furnished;

                  (v) the Corporation or any Subsidiary makes an assignment
for the benefit of creditors or admits in writing its inability to pay its
debts generally as they become due; or an order, judgment or decree is
entered adjudicating the Corporation or any Subsidiary bankrupt or insolvent;
or any order for relief with respect to the Corporation or any Subsidiary is
entered under the Federal Bankruptcy Code; or the Corporation or any
Subsidiary petitions or applies to any tribunal for the appointment of a
custodian, trustee, receiver or liquidator of the Corporation or any
Subsidiary or of any substantial part of the assets of the Corporation or any
Subsidiary, or commences any proceeding (other than a proceeding for the
voluntary liquidation and dissolution of any Subsidiary) relating to the
Corporation or any Subsidiary under any bankruptcy, reorganization,
arrangement, insolvency, readjustment of debt, dissolution or liquidation law
of any jurisdiction; or the Corporation or any Subsidiary takes any action to
authorize any of the foregoing; or any such petition or application is filed,
or any such proceeding is commenced, against the Corporation or any
Subsidiary and either (a) the Corporation or any such Subsidiary by any act
indicates its approval thereof, consent thereto or acquiescence therein or
(b) such petition, application or proceeding is not dismissed within 60 days;

                  (vi) any material provision of the Purchase Agreement or
any Related Document shall at any time for any reason be declared to be null
and void, or the validity or enforceability thereof shall be contested by any
party thereto, or a proceeding shall be commenced by the Corporation or any
Governmental Authority or other regulatory body having jurisdiction over the
Corporation, seeking to establish the invalidity or enforceability thereof,
or the Corporation shall deny in writing that it has any liability or
obligation purported to be created under the Purchase Agreement or any
Related Document;

                  (vii) (A) any registration statement required to be filed
and declared effective by the Corporation pursuant to the Purchase Agreement
shall not become effective as provided in the Purchase Agreement or shall
cease to be effective, (B) the Securities and Exchange Commission shall issue
any stop order suspending the effectiveness under the Securities Act of any
registration statement required to be filed and declared effective by the
Corporation pursuant to the Purchase Agreement or any state securities
commission suspends the qualification of the Registrable Securities covered
thereby for offering or sale in any jurisdiction, (C) any proceeding for
purposes of either (A) or (B) above is initiated, or (D) the Common Stock is
suspended from trading on or the price for the Common Stock is not quoted or
reported on the NASDAQ Stock Market System or the NASD's OTC Bulletin Board;

                  (viii) the Company at any time shall not have reserved and
available authorized but unissued shares of Common Stock, solely for the
purpose of issuance upon conversion of the Preferred Stock, in the number
which would be issuable upon the conversion of all of the issued and
outstanding Preferred Stock; or

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<PAGE>

                  (ix) the occurrence of a Material Adverse Change (as
defined in the Purchase Agreement).

         10B.   Consequences of Events of Noncompliance.

                  (i) If an Event of Noncompliance (other than an Event of
Noncompliance due to paragraph 10A(v)) has occurred and is continuing, (a)
any holder of any shares of Preferred Stock then outstanding may demand (by
written notice delivered to the Corporation), notwithstanding any other
provision contained herein, (1) the immediate conversion of all or any shares
of such holder's or holders' Preferred Stock at the applicable Conversion
Price as of the date of such holder's notice or (2) the immediate redemption
of all or any portion of the Preferred Stock owned by such holder or holders
at a price per share equal to the Redemption Price as of the date of such
holder's notice plus interest thereon at the rate of 3.5% per month or
portion thereof from the date of the occurrence of an Event of Noncompliance
until paid in full, and (b) the dividend rate on the Preferred Stock
(including any Preferred Stock not redeemed or converted pursuant to (1) and
(2) above) shall increase immediately by an increment of two percentage
points. Thereafter, during the continuance of an Event of Noncompliance and
until such time as no Event of Noncompliance exists, the dividend rate shall
increase automatically at the end of each succeeding 90-day period by an
additional increment of two percentage points (but in no event shall the
dividend rate exceed 15%). Any increase of the dividend rate resulting from
the operation of this subparagraph shall terminate as of the close of
business on the date on which no Event of Noncompliance exists, subject to
subsequent increases pursuant to this paragraph. The Corporation shall give
prompt written notice of any holder's election for immediate conversion or
redemption to the other holders of Preferred Stock (but in any event within
five days after receipt of the initial demand for conversion or redemption),
and each such other holder may demand immediate conversion or redemption of
all or any portion of such holder's Preferred Stock by giving written notice
thereof to the Corporation within seven days after receipt of the
Corporation's notice. The Corporation shall convert or redeem all Preferred
Stock as to which rights under this paragraph have been exercised within 5
days after receipt of the initial demand for conversion or redemption.

                  (ii) If an Event of Noncompliance of the type described in
subparagraph 10A(v) has occurred, all of the Preferred Stock then outstanding
shall be subject to immediate redemption by the Corporation (without any
action on the part of the holders of the Preferred Stock) at a price per
share equal to the Redemption Price on the date of the occurrence of the
Event of Noncompliance plus interest thereon at the rate of 3.5% per month or
portion thereof from the date of the occurrence of the Event of Noncompliance
until paid in full. The Corporation shall immediately redeem all Preferred
Stock upon the occurrence of such Event of Noncompliance.

                  (iii) If any Event of Noncompliance of the type described
in subparagraph 10A(i) occurs, for each such occurrence of the failure to pay
on any Dividend Payment Date the full amount of dividends then accrued on the
Preferred Stock, whether or not such payments are legally permissible or are
prohibited by any agreement to which the Corporation is subject, the
Conversion

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                                     - 15 -

<PAGE>

Price calculated at the time of conversion shall be reduced by $0.50 per
share. In no event shall any Conversion Price adjustment hereunder be
rescinded.

                  (iv) If any Event of Noncompliance of the type described in
subparagraph 10A(ii) occurs the Conversion Price calculated at the time of
conversion shall be reduced to 75% of the applicable Conversion Price in
effect at the time of conversion immediately prior to such adjustment.
Thereafter, for each succeeding 90-day period that the Event of Noncompliance
continues following the initial Event of Noncompliance referred to above, the
Conversion Price calculated at the time of conversion shall be reduced to 75%
of the Conversion Price in effect at the time of conversion immediately prior
to such adjustment. In no event shall any Conversion Price adjustment
hereunder be rescinded.

         For example, assume that an Event of Noncompliance of the type
described in subparagraph 10A(ii) has occurred and the Preferred Stock
becomes immediately convertible. Then assume that one year prior to such
Event of Noncompliance there had been a two-for-one stock split by the
Corporation. Finally, assume that, pursuant to Section 7B(i), the Conversion
Price prior to the stock split was $5.00. In this case, the Conversion Price
of $5.00 would first be decreased pursuant to Section 7D from $5.00 to $2.50.
Then the Conversion Price calculated at the time of conversion would be
reduced to 75% of $2.50, or $1.875. If the Event of Noncompliance had existed
for an additional 90 days following the initial Event of Noncompliance the
Conversion Price at the time of conversion would be reduced to 75% of $1.875,
or $1.40625. If the Event of Noncompliance had existed for an additional 90
days following the initial Event of Noncompliance the Conversion Price at the
time of conversion would be further reduced to 75% of $1.40625, or $1.05469.

                  (v) If any Event of Noncompliance of the type described in
subparagraph 10A(vi) occurs, for each such occurrence the Conversion Price
calculated at the time of conversion shall be reduced by an amount equal to
the quotient of (a) the amount of the judgment referred to in subparagraph
10A(vi) divided by (b) the number of shares of Common Stock Deemed
Outstanding at the time of the Event of Noncompliance.

                  (vi) If any Event of Noncompliance of the type described in
subparagraph 10A(viii) occurs, for each such occurrence the Company hereby
covenants and agrees to issue or cause to be issued to the Purchaser on any
such date and on every date which is 30 days or a multiple thereof after such
date, until such Event of Noncompliance is cured, additional shares of Common
Stock equal in number to 10% of the total number of shares of Common Stock
issued or issuable upon conversion of all issued and outstanding Preferred
Stock.

                  (vii) If any Event of Noncompliance exists, each holder of
Preferred Stock shall also have any other rights which such holder is
entitled to under the Purchase Agreement or any other contract or agreement
and any other rights which such holder may have pursuant to applicable law.

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                                     - 16 -

<PAGE>

                  (viii) Neither the Corporation nor holders of the Preferred
Stock shall file any Tax Return (as defined in the Purchase Agreement) or
take any position with any taxing authority treating a reduction in the
Conversion Price pursuant to this Section 10B as a deemed dividend.

         10C. Right to Cure. Any breach, default in performance of any
provision or Event of Noncompliance of the Purchase Agreement or any of the
Related Documents which directly affects the Purchaser's ability to acquire
the Preferred Shares and Warrants, convert the Preferred Shares, Exercise the
Warrants or sell pursuant to a valid registration shall be interpreted in
accordance with the terms of this Purchase Agreement or the Related Document.
Any breach, default in performance of any provision or Event of Noncompliance
of this Purchase Agreement or any of the Related Documents which does not
directly affect the Purchaser's ability to acquire the Preferred Shares and
Warrants, convert the Preferred Shares, Exercise the Warrants or sell
pursuant to a valid registration shall be subject to written notice delivered
to the Company and may be cured by the Company during the five (5) days after
receipt of written notice of such breach, default or Event of Noncompliance.

         Section 11.  Registration of Transfer.

         The Corporation shall keep at its principal office a register for
the registration of Preferred Stock. Subject to compliance with applicable
securities laws, upon the surrender of any certificate representing Preferred
Stock at such place, the Corporation shall, at the request of the record
holder of such certificate, execute and deliver (at the holder's expense) a
new certificate or certificates in exchange therefor representing in the
aggregate the number of shares of Preferred Stock represented by the
surrendered certificate. Each such new certificate shall be registered in
such name and shall represent such number of shares of Preferred Stock as is
requested by the holder of the surrendered certificate and shall be
substantially identical in form to the surrendered certificate, and dividends
shall accrue on the Preferred Stock represented by such new certificate from
the date to which dividends have been fully paid on such Preferred Stock
represented by the surrendered certificate. All transfers of Preferred Stock
shall be subject to any restrictions imposed by applicable federal and state
securities laws.

         Section 12.  Replacement.

         Upon receipt of evidence reasonably satisfactory to the Corporation
(an affidavit of the registered holder shall be satisfactory) of the
ownership and the loss, theft, destruction or mutilation of any certificate
evidencing shares of any of the Preferred Stock, and in the case of any such
loss, theft or destruction, upon receipt of indemnity reasonably satisfactory
to the Corporation, or, in the case of any such mutilation upon surrender of
such certificate, the Corporation shall (at the holder's expense) execute and
deliver in lieu of such certificate a new certificate of like kind
representing the number of shares of Preferred Stock of such class
represented by such lost, stolen, destroyed or mutilated certificate and
dated the date of such lost, stolen, destroyed or mutilated certificate, and
dividends shall accrue on the Preferred Stock

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                                     - 17 -

<PAGE>

represented by such new certificate from the date to which dividends have
been fully paid on such lost, stolen, destroyed or mutilated certificate.

         Section 13.  Amendment and Waiver.

         No amendment, modification or waiver shall be binding or effective
with respect to any provision of Sections 1 to 10 hereof without the prior
written consent of the holders of at least 51% of the Preferred Stock
outstanding at the time such action is taken; provided that no such action
shall change (a) the rate at which or the manner in which dividends on the
Preferred Stock accrue or the times at which such dividends become payable or
the amount payable on redemption of the Preferred Stock or the times at which
redemption of Preferred Stock is to occur, without the prior written consent
of the holders of at least 80% of the Preferred Stock then outstanding, (b)
the Conversion Price of the Preferred Stock or the number of shares or class
of stock into which the Preferred Stock is convertible, without the prior
written consent of the holder of at least 80% of the Preferred Stock then
outstanding or (c) the percentage required to approve any change described in
clauses (a) and (b) above, without the prior written consent of the holders
of at least 80% of the Preferred Stock then outstanding.

         Section 14.  Notices.

         Except as otherwise expressly provided hereunder, all notices
referred to herein shall be in writing and shall be delivered by registered
or certified mail, return receipt requested and postage prepaid, or by
reputable overnight courier service, charges prepaid, and shall be deemed to
have been given when so mailed or sent (i) to the Corporation, at its
principal executive offices and (ii) to any stockholder, at such holder's
address as it appears in the stock records of the Corporation (unless
otherwise indicated by any such holder).

         IN WITNESS WHEREOF, the Corporation has caused its corporate seal to
be affixed hereto and this Certificate of Designation to be signed by its
President and Secretary this ____ day of December, 1999.

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                                     - 18 -

<PAGE>

                     CERTIFICATE OF PRESIDENT AND SECRETARY

KNOW ALL MEN BY THESE PRESENTS:

         That the undersigned John M. Hopkins, President of Venturi
Technologies, Inc., a Nevada corporation (the "Corporation"), and Randy K.
Johnson, Secretary of the Corporation, do hereby certify that the Articles of
Incorporation for the Corporation provide that Series of preferred stock may
be established by resolution of the Board of Directors, and that the above
and foregoing Certificate of Designation of Preferences, Limitations and
Relative Rights of said Corporation was duly and regularly adopted as such by
a resolution of all of the members of the Board of Director of the
Corporation on December 13th, 1999.

         Dated: December 13th, 1999.

                                       /s/ John M. Hopkins
                                       ------------------------------------
                                       John M. Hopkins, President

                                       /s/ Randy K. Johnson
                                       ------------------------------------
                                       Randy K. Johnson, Secretary

                                 ACKNOWLEDGMENT

STATE OF UTAH  )
               )ss:
COUNTY OF UTAH )

         On the 13th day of December, 1999, personally appeared before me
John M. Hopkins, President of Venturi Technologies, Inc., personally known to
me or proved to me on the basis of satisfactory evidence to be the person
whose name is signed on the preceding document, and acknowledged to me that
he signed it voluntarily for its stated purpose.

                                       /s/ Vickie F. Johnson
                                       ------------------------------------
                                       NOTARY PUBLIC

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                                     - 19 -

<PAGE>

                                                                     Exhibit A

                          FORM OF NOTICE OF CONVERSION

Venturi Technologies,  Inc.
763 North 530 East
Orem Utah 84057

cc:  [Name of Transfer Agent]

         Re:  Series E Cumulative Convertible Preferred Stock

Gentlemen:

         The undersigned registered holder hereby elects to convert _____
[number] shares of Series E Cumulative Convertible Preferred Stock of the
Corporation into shares of Common Stock, par value $.001 per share, of the
Corporation pursuant to the Certificate of Designation for Series E Preferred
Stock dated December ___, 1999.

         The number of shares of Common Stock to be issued to the undersigned
is _____ shares, based on a conversion price of $___ per share.

         Date:
               -----------------       -----------------------------------------
                                       Authorized Signature of Registered Holder

                             CONFIRMATION OF RECEIPT
                             OF NOTICE OF CONVERSION
                           AND CONVERSION CALCULATION:

         Acknowledged:                 VENTURI TECHNOLOGIES, INC.

                                       By
                                         -----------------------------
                                       Name:
                                            --------------------------
                                       Title:
                                             -------------------------

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                                     - 20 -

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