Document:

FIRST
      AMENDMENT TO SENIOR SECURED CONVERTIBLE PROMISSORY NOTES

     

    This
      Amendment to Senior Secured Convertible Promissory Notes, dated as of May 7,
      2007 (this “Amendment”),
      is
      made with respect to the February 13, 2006 Senior Secured Convertible Note
      and
      Warrant Purchase Agreement by and among LaserLock Technologies, Inc., a Nevada
      corporation (“Borrower”),
      and
      the purchasers of Borrower’s Senior Secured Convertible Promissory Notes in the
      aggregate original principal amount of $800,000 party thereto (collectively,
      the
“Lenders”),
      as
      the same may be amended, supplemented, modified or restated from time to time
      (as hereafter amended, supplemented or otherwise modified, the “Credit
      Agreement”).
      Capitalized terms used herein and not defined herein shall have the meanings
      assigned to such terms in the Credit Agreement. 

     

    BACKGROUND:

     

    WHEREAS,
      Borrower has requested that the Lenders extend the Maturity Date (as defined
      in
      the Notes issued to each Lender under the Credit Agreement) to August 31, 2008,
      and waive any payment defaults under the Credit Agreement or the other Financing
      Documents existing as a of the date hereof; 

     

    WHEREAS,
      in consideration of the foregoing, among other things, Borrower and the Lenders
      desire to increase the Interest Rate (as defined in the Notes issued to each
      Lender under the Credit Agreement) to 12% during such extended term of the
      Notes;

     

    WHEREAS,
      under the provisions contained of the Notes, the Credit Agreement and the other
      Financing Documents, the Notes may be amended only with the written consent
      of
      the Company and the holders of a majority of the outstanding principal amount
      of
      the Notes; and

     

    WHEREAS,
      the Company and the Lenders holding the requisite principal amount of Notes
      have
      executed and delivered this Amendment which shall amend all Notes outstanding
      as
      of the date hereof upon the terms and conditions set forth herein.

     

    NOW,
      THEREFORE, in consideration of the mutual covenants contained herein and
      benefits to be derived herefrom, it is hereby agreed between the undersigned
      Lenders and Borrower as follows:

     

    1.  Amendment.
      The
“Maturity Date” of each Note is hereby extended to August 31, 2008, and all
      references in any of the Financing Documents to the Maturity Date of the Notes
      are hereby amended accordingly. Each Note is hereby amended such that, during
      the period from the date that is twelve months after the date of each Note
      through the Maturity Date (as amended in accordance with the foregoing
      sentence), interest shall accrue on the unpaid balance of the principal amount
      of the Note from time to time at the rate of twelve percent (12.0%) per annum
      (computed in either event on the basis of a 360 day year and the actual number
      of days elapsed), and all references in any of the Financing Documents to the
      term “Interest Rate” are hereby amended accordingly.

     

    2.  Waiver.
      In
      connection with the forgoing amendment, the undersigned Lenders hereby waive
      any
      payment defaults existing as of the date hereof under the Credit Agreement
      or
      the other Financing Documents.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.  Ratification:
      Except
      as provided herein, all terms and conditions, representations and warranties,
      and other provisions of the Credit Agreement and of the other Financing
      Documents shall remain in full force and effect. 

     

    4.  Miscellaneous:

     

    (a)  This
      Amendment may be executed in several counterparts and by each party on a
      separate counterpart, each of which when so executed and delivered shall be
      an
      original, and all of which together shall constitute one agreement.

     

    (b)  This
      Amendment expresses the entire understanding of the parties with respect to
      the
      transactions contemplated hereby. No prior negotiations or discussions shall
      limit, modify, or otherwise affect the provisions hereof.

     

    (c)  Any
      determination that any provision of this Amendment or any application hereof
      is
      invalid, illegal, or unenforceable in any respect and in any instance shall
      not
      affect the validity, legality, or enforceability of such provision in any other
      instance, or the validity, legality, or enforceability of any other provision
      of
      this Agreement.

     

    (d)  Borrower
      shall execute and deliver to the Lenders whatever additional documents,
      instruments, and agreements that the Lenders may require in order to give effect
      to, and implement the terms and conditions of this Agreement.

     

    IN
      WITNESS WHEREOF, the Borrower and the undersigned Lenders, constituting the
      Lenders holding at least a majority of the outstanding principal amount of
      the
      Notes, acting through their respective authorized officers (as applicable),
      have
      caused this Amendment to be duly executed and delivered as of the date first
      above written.

     

     

    
      	 	
              BORROWER:

            
	 	 
	 	
              LASERLOCK
                TECHNOLOGIES, INC.,

            
	 	
              a
                Nevada corporation

            
	 	 
	 	 
	 	
              By:    
                /s/ NORMAN
                GARDNER                               
                

            
	 	
              Name:
                Norman Gardner

            
	 	
              Title:
                President and Chief Executive
                Officer

            

    

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    LASERLOCK
      TECHNOLOGIES, INC.

    Counterpart
      Signature Page

    to
      First
      Amendment to Senior Secured Convertible Promissory Notes

    

    LENDER:

    

    ROBERT
      SCHACHTER TRUST

     

     

    
      	
              By:

            	
              /s/
                DIANE SCHACHTER

            
	 	
              Name:
                Diane Schachter

            
	 	
              Title:
                Trustee

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LASERLOCK
      TECHNOLOGIES, INC.

    Counterpart
      Signature Page

    to
      First
      Amendment to Senior Secured Convertible Promissory Notes

    

    LENDER:

    

    PFK
      ACQUISITION GROUP II, LLC

    
 

    
      	
              By:

            	
              /s/
                JAMES S. MADDEN

            
	 	
              Name:
                James S. Madden

            
	 	
              Title:
                Manager

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LASERLOCK
      TECHNOLOGIES, INC.

    Counterpart
      Signature Page

    to
      First
      Amendment to Senior Secured Convertible Promissory Notes

    

    LENDER:

    

    NOB
      HILL
      CAPITAL PARTNERS, LP

     

     

    
      	
              By:

            	
              /s/
                STEPHEN R. MITTEL

            
	 	
              Name:
                Stephen R. Mittel

            
	 	
              Title:
                General Partner

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LASERLOCK
      TECHNOLOGIES, INC.

    Counterpart
      Signature Page

    to
      First
      Amendment to Senior Secured Convertible Promissory Notes

    

    LENDER:

    

    NOB
      HILL
      CAPITAL ASSOCIATES, LP

     

    

    
      	
              By:

            	
              /s/
                STEPHEN R. MITTEL

            
	 	
              Name:
                Stephen R. Mittel

            
	 	
              Title:
                General Partner

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LASERLOCK
      TECHNOLOGIES, INC.

    Counterpart
      Signature Page

    to
      First
      Amendment to Senior Secured Convertible Promissory Notes

    

    LENDER:

    

    NICOLETTE
      CONSULTING GROUP LIMITED

     

     

    
      	
              By:

            	
              /s/
                THOMAS A. NICOLETTE

            
	 	
              Name:
                Thomas A. Nicolette

            
	 	
              Title:
                President

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LASERLOCK
      TECHNOLOGIES, INC.

    Counterpart
      Signature Page

    to
      First
      Amendment to Senior Secured Convertible Promissory Notes

    

    LENDER:

    

    REAL
      PATH, INC.

     

     

    
      	
              By:

            	
              /s/
                EUGENE RUPERT 

            
	 	
              Name:
                Eugene Rupert

            
	 	
              Title:
                Executive Vice President

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LASERLOCK
      TECHNOLOGIES, INC.

    Counterpart
      Signature Page

    to
      First
      Amendment to Senior Secured Convertible Promissory Notes

    

    LENDER:

    

    

    /s/
      HOWARD GOLDBERG

    Howard
      Goldberg

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LASERLOCK
      TECHNOLOGIES, INC.

    Counterpart
      Signature Page

    to
      First
      Amendment to Senior Secured Convertible Promissory Notes

    

    LENDER:

     

     

    
      	 	
              /s/
                ALFRED F. BRACHER, III

            
	 	
              Alfred
                F. Bracher, III

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LASERLOCK
      TECHNOLOGIES, INC.

    Counterpart
      Signature Page

    to
      First
      Amendment to Senior Secured Convertible Promissory Notes

    

    LENDER:

    

    GOLDBERG
      FAMILY TRUST, DATED 8/12/93

     

     

    
      	
              By:

            	
              /s/
                HARVEY GOLDBERG

            
	 	
              Name:
                Harvey Goldberg

            
	 	
              Title:
                Trustee

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LASERLOCK
      TECHNOLOGIES, INC.

    Counterpart
      Signature Page

    to
      First
      Amendment to Senior Secured Convertible Promissory Notes

    

    LENDER:

    

    

    
      	 	
              /s/
                LAWRENCE CHIMERINE

            
	 	
              Lawrence
                ChimerineCERTIFICATE
      OF DESIGNATIONS, VOTING POWERS,

    

    PREFERENCES
      AND RIGHTS

    

    OF

    

    THE
      SERIES OF PREFERRED STOCK

    

    OF

    

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

    

    TO
      BE DESIGNATED

    

    SERIES
      A CONVERTIBLE PREFERRED STOCK

    (As
      Amended January 2007)

    

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

    

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

    

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

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3. Liquidation
      Preference.

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

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

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

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

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

    (i) Reserved

    

    (ii) Reserved

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

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

    

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

    

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

    

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

    

    (g) No
      Impairment.
      This
      Corporation will not, by amendment of its Articles of Incorporation or through
      any reorganization, recapitalization, transfer of assets, consolidation, merger,
      dissolution, issue or sale of securities or any other voluntary action, avoid
      or
      seek to avoid the observance or performance of any of the terms to be observed
      or performed hereunder by this Corporation, but will at all times in good faith
      assist in the carrying out of all the provisions of this Section
      4
      and in
      taking of all such action as may be necessary or appropriate in order to protect
      the Conversion Rights of the holders of the Series A Preferred Stock against
      impairment.

    

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

    

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

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (ii) Upon
      the
      occurrence of each adjustment or readjustment of the Conversion Price of Series
      A Preferred Stock pursuant this Section
      4,
      the
      Corporation, at its expense, shall promptly compute such adjustment or
      readjustment in accordance with the terms hereof and prepare and furnish to
      each
      holder of Series A Preferred Stock a certificate setting forth such adjustment
      or readjustment and showing in detail the facts upon which such adjustment
      or
      readjustment is based. The Corporation shall, upon the written request at any
      time of any holder of Series A Preferred Stock, furnish or cause to be furnished
      to such holder a like certificate setting forth (A) such adjustment and
      readjustment, (B) the Conversion Price for the Series A Preferred Stock at
      the
      time in effect, and (C) the number of shares of Common Stock and the amount,
      if
      any, of other property which at the time would be received upon the conversion
      of a share of Series A Preferred Stock.

    

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

    

    (j) Reservation
      of Stock Issuable Upon Conversion.
      The
      Corporation shall at all times reserve and keep available out of its authorized
      but unissued shares of Common Stock, solely for the purpose of effecting the
      conversion of the shares of the Series A Preferred Stock, such number of shares
      of its Common Stock as shall from time to time be sufficient to effect the
      conversion of all outstanding shares of the Series A Preferred Stock; and if
      at
      any time the number of authorized shares of Common Stock shall not be sufficient
      to effect the conversion of all then outstanding shares of the Series A
      Preferred Stock, in addition to such other remedies as shall be available to
      the
      holder of such Preferred Stock, the Corporation will take such corporate action
      as may, in the opinion of its counsel, be necessary to increase its authorized
      but unissued shares of Common Stock to such number of shares as shall be
      sufficient for such purposes, including, without limitation, engaging in best
      efforts to obtain the requisite shareholder approval of any necessary amendment
      to the Corporation’s Articles of Incorporation.

    

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

    

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

    

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

    

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

    

    INTELLIHOME,
      INC.

    

    

    By: /s/
      Mark
      Trimble 

    Name:
       Mark
      Trimble

    Title:
       President

     

    
      
         

      

      
        5

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