CYBERUNI ORG INC
SB-1/A, EX-4, 2000-06-16
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                                    EXHIBIT 4

                      CERTIFICATE OF DETERMINATION SERIES A


                                       81
<PAGE>

                          CERTIFICATE OF DETERMINATION
                                       OF
                     THE PRIVILEGES, RIGHTS AND PREFERENCES
                                       OF
            THE SERIES A CONVERTIBLE PREFERRED STOCK, $5.00 Par Value
                                       OF
                               CYBERUNI.ORG, INC.
                           (A California Corporation)

                  The undersigned,  George V. Franich and Peter J.  Caccioppoli,
hereby certify that:

                  1.  They  are  the  duly  elected  and  acting  President  and
         Secretary,   respectively,   of   cyberuni.org,   Inc.,   a  California
         corporation (the "Corporation").

                  2.  The  Corporation  is  authorized  to  issue  five  million
         (5,000,000)  shares of  Preferred  Stock.  The  number of shares  being
         authorized  in the series of Preferred  Stock  designated  as "Series A
         Convertible  Preferred Stock, $5.00 Par Value" is 1,050,000.  No shares
         of said Series A Convertible  Preferred  Stock,  $5.00 Par Value,  have
         been issued.

                  3. Under  authority  given by the  Corporation's  Articles  of
         Incorporation,  the Board of Directors  has duly adopted the  following
         recitals and resolutions:

                  WHEREAS,  the  Articles of  Incorporation  of the  Corporation
         provide for a class of shares known as Preferred  Stock,  issuable from
         time to time in one or more series; and

                  WHEREAS,   the  Board  of  Directors  of  the  Corporation  is
         authorized to determine or alter the rights,  preferences,  privileges,
         and restrictions granted to or imposed on any wholly unissued series of
         Preferred  Stock,  to fix the  number of shares  constituting  any such
         series, and to determine the designation thereof, or any of them; and

                  WHEREAS,  the  Corporation  has not  issued any shares of such
         Series A Convertible  Preferred Stock, $5.00 Par Value and the Board of
         Directors  of  this  Corporation   desires  to  determine  the  rights,
         preferences,  privileges,  and restrictions  relating to this series of
         Preferred  Stock,  and  the  number  of  shares  constituting  and  the
         designation of said series;

         RESOLVED, that the Board of Directors hereby determines the designation
of, number of shares constituting, and the rights, preferences,  privileges, and
restrictions  (in addition to those set forth in the  Corporation's  Articles of
Incorporation)  relating to said Series A Convertible Preferred Stock, Par Value
$5.00 as follows:

         I        Designation

                  This series of Preferred  Stock shall be designated  "Series A
Convertible Preferred Stock, Par Value $5.00 Per Share" (referred to hereinafter
as the "Preferred Stock, Series A").

         II       Number of Shares

                  The number of shares  constituting the Preferred Stock, Series
A shall be One million and fifty thousand (1,050,000).

         III      Par Value

                  The par value of the Preferred Stock,  Series A shall be $5.00
per share.

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<PAGE>

         IV       Voting

                  The Preferred  Stock,  Series A shall have one vote per common
share on the basis as though  immediately prior to the vote the Preferred Stock,
Series A had been converted into Common Stock.

         V        Preference on Liquidation

                  In  the  event  of  a  liquidation  of  the  Corporation,  the
Preferred  Stock,  Series A (and any other series of Preferred  Stock  granted a
preference on  liquidation  over the Common Stock) shall have a first claim over
and above the Common Stock on the net assets of the Corporation in the amount of
$5.00 per share  (the  "Series A  Liquidation  Preference;"  or the  liquidation
preference  of any other  series of  Preferred  Stock).  The net assets shall be
those assets  remaining  after payment of the liabilities of the Corporation and
prior to any distribution to the shareholders holding Common Stock. In the event
the net assets are not sufficient to return the Series A Liquidation  Preference
to the Preferred  Stock,  Series A and the  liquidation  preference of any other
Preferred Stock,  the holders of the Preferred Stock,  Series A shall share with
any  other  outstanding  series of  Preferred  Stock  which  has been  granted a
preference  on  liquidation,  if any, on a pro rata basis in  proportion  to the
dollar amount of the par value of their  respective  holdings.  In the event the
net assets are sufficient to return the Series A Liquidation Preference, as well
as any  liquidation  preference  for any other  outstanding  series of Preferred
Stock which has been  granted a  preference  on  liquidation,  if any,  then the
Preferred  Stock,  Series  A,  shall be  entitled  to  share  in any  additional
distributions  on  liquidation  with any other  outstanding  series of Preferred
Stock which has been granted a preference on liquidation,  if any, on a pro rata
basis in proportion  to the dollar  amount of the par value of their  respective
holdings,  and pro rata with the Common  Stock on the basis as if the  Preferred
Stock,  Series A and any other class of Preferred  Stock had been converted into
Common Stock immediately prior to the liquidation.

         VI       Conversion

                  The holders of Preferred Stock, Series A shall have conversion
rights as follows (the "Conversion Rights"):

         (a) Right to Convert;  Conversion Price. Each share of Preferred Stock,
         Series A shall be  convertible,  without the payment of any  additional
         consideration  by the  holder  thereof  and at the option of the holder
         thereof,  at any time after the date of issuance of such share,  at the
         office of the  Corporation  or any  transfer  agent  for the  Preferred
         Stock,  Series  A, into such  number  of fully  paid and  nonassessable
         shares  of  Common  Stock as is  determined  by  dividing  $5.00 by the
         Conversion Price,  determined as hereinafter provided, in effect at the
         time of  conversion  and by adding  thereto the product  determined  by
         dividing  the amount of all accrued and unpaid  dividends on such share
         of  Preferred  Stock,  Series A by the lower of (1) $5.00 or (2) in the
         event of a conversion  upon or following the initial public offering of
         Common Stock pursuant to an effective  registration statement under the
         Securities Act of 1933, as amended,  the actual initial public offering
         price per share.  The Conversion  Price for purposes of calculating the
         number of shares of Common Stock  deliverable  upon conversion  without
         the payment of any additional  consideration by the holder of Preferred
         Stock,  Series A (the "Conversion  Price") shall initially be $5.00 per
         share of Common Stock.  Such initial  Conversion Price shall be subject
         to adjustment,  in order to adjust the number of shares of Common Stock
         into which Preferred  Stock,  Series A is  convertible,  as hereinafter
         provided.

         (b)  Mechanics of  Conversion.  Before any holder of  Preferred  Stock,
         Series A shall be  entitled  to  convert  the same into full  shares of
         Common  Stock,   such  holder  shall   surrender  the   certificate  or
         certificates therefor,  duly endorsed, at the office of the Corporation
         or of any transfer agent for the Preferred  Stock,  Series A, and shall
         give written notice to the  Corporation at such office that such holder
         elects to convert  the same and shall  state  therein  the name of such
         holder  or the name or names



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<PAGE>

         of the  nominees  of such  holder  in  which  such  holder  wishes  the
         certificate or certificates for shares of Common Stock to be issued. No
         fractional  shares of Common Stock shall be issued upon  conversion  of
         any  shares of  Preferred  Stock,  Series A. In lieu of any  fractional
         shares of Common Stock to which the holder would otherwise be entitled,
         the Corporation shall pay cash equal to such fraction multiplied by the
         then effective  Conversion  Price.  The  Corporation  shall, as soon as
         practicable thereafter, issue and deliver at such office to such holder
         of Preferred Stock,  Series A, or to such holder's nominee or nominees,
         a certificate or certificates  for the number of shares of Common Stock
         to which such holder shall be entitled as aforesaid, together with cash
         in lieu of any fraction of a share.  Such conversion shall be deemed to
         have been made  immediately  prior to the close of business on the date
         of such  surrender  of the shares of  Preferred  Stock,  Series A to be
         converted,  and the person or persons entitled to receive the shares of
         Common Stock issuable upon conversion shall be treated for all purposes
         as the record  holder or holders of such shares of Common Stock on such
         date.

         (c)      Automatic Conversion.

              (i) Each share of Preferred Stock, Series A shall automatically be
              converted into shares of Common Stock,  in the manner  provided in
              Section VI(a), as follows:

                  (A) At such time as the fiscal  year-end  balance sheet of the
                  corporation,  prepared in accordance  with generally  accepted
                  accounting  principles,  shows a net  tangible  book  value of
                  seven  dollars and fifty  cents  ($7.50) or more per share for
                  each share of the Preferred Stock,  Series A, said stock shall
                  be   automatically   converted   into  Common   Stock  of  the
                  corporation on a share-for-share  basis on the sixtieth (60th)
                  day  following the fiscal year end of the fiscal year in which
                  the book  value per  share of  Preferred  Stock,  Series A was
                  found to be seven  dollars and fifty cents ($7.50) or more per
                  share.

                  (B) If at any time while there are shares of Preferred  Stock,
                  Series  A  issued  and  outstanding  there  is to be a sale or
                  transfer of all, or  substantially  all, of the  Corporation's
                  properties  or  assets,  or a sale of at least  fifty  percent
                  (50%) of all shares of the Corporation's  Common and Preferred
                  stock then  outstanding  regardless  of class or series,  each
                  share of the Preferred Stock, Series A, shall be automatically
                  converted   into  Common  Stock  of  the   Corporation   on  a
                  share-for-share basis prior to said sale or transfer.

                  (C)  Each   outstanding   share  of   Preferred   Stock  shall
                  automatically  be  converted,  without  any further act of the
                  Corporation   or  its   stockholders,   into  fully  paid  and
                  nonassessable  shares  of  Common  Stock on a  share-for-share
                  basis upon the closing of a firm underwritten  public offering
                  pursuant  to an  effective  registration  statement  under the
                  Securities Act of 1933, as amended,  covering the offering and
                  sale of the Common Stock for the account of the Corporation in
                  which the aggregate gross proceeds received by the Corporation
                  equals or exceeds $5,000,000.

              (ii) Upon the occurrence of an event specified in Section VI(c)(i)
              hereof, all shares of Preferred Stock, Series A shall be converted
              automatically  without  any  further  action by any holder of such
              shares  and  whether  or  not  the   certificate  or  certificates
              representing such shares are surrendered to the Corporation or the
              transfer  agent  for the  Preferred  Stock,  Series  A;  provided,
              however,  that the  Corporation  shall not be obligated to issue a
              certificate or certificates  evidencing the shares of Common Stock
              issuable  upon  such   conversion   unless  the   certificate   or
              certificates  evidencing such shares of Preferred Stock,  Series A
              being  converted are either  delivered to the  Corporation  or the
              transfer  agent of the  Preferred  Stock,  Series A, or the holder
              notifies  the   Corporation  or  such  transfer  agent  that  such
              certificate or certificates  have been lost,  stolen, or destroyed
              and  executes an  agreement  satisfactory  to the  Corporation  to
              indemnify  the  Corporation  from  any  loss  incurred  by  it  in
              connection  therewith and, if the Corporation so elects,  provides
              an appropriate  indemnity



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<PAGE>

              bond. Upon the automatic  conversion of Preferred Stock, Series A,
              each  holder of  Preferred  Stock,  Series A shall  surrender  the
              certificate or certificates  representing  such holder's shares of
              Preferred  Stock,  Series A at the office of the Corporation or of
              the transfer agent for the Preferred  Stock,  Series A. Thereupon,
              there shall be issued and  delivered to such  holder,  promptly at
              such office and in such holder's name as shown on such surrendered
              certificate or certificates, a certificate or certificates for the
              number  of  shares  of  Common  Stock  into  which  the  shares of
              Preferred Stock, Series A surrendered were convertible on the date
              on which such automatic conversion occurred.  No fractional shares
              of Common Stock shall be issued upon the  automatic  conversion of
              Preferred  Stock,  Series A. In lieu of any  fractional  shares of
              Common Stock to which the holder would otherwise be entitled,  the
              Corporation  shall pay cash equal to such  fraction  multiplied by
              the then effective Conversion Price.

         (d)      Adjustments to Conversion Price for Diluting Issues.

              (i) Special  Definitions  For purposes of this Section VI(d),  the
              following definitions shall apply:

                  (A)  "Option"  shall  mean  rights,  options  or  warrants  to
                  subscribe  for,  purchase or otherwise  acquire  either Common
                  Stock or Convertible Securities.

                  (B) "Original Issue Date" shall mean the date on which a share
                  of Preferred Stock, Series A was first issued.

                  (C)  "Convertible  Securities"  shall  mean any  evidences  of
                  indebtedness,  shares  (other than Common Stock and  Preferred
                  Stock,  Series A) or other  securities  directly or indirectly
                  convertible into or exchangeable for Common Stock.

                  (D) "Additional  Shares of Common Stock" shall mean all shares
                  of Common  Stock issued (or,  pursuant to Section  VI(d)(iii),
                  deemed to be issued)  by the  Corporation  after the  Original
                  Issue Date, other than:

                      (I)  shares  of  Common  Stock  issued  or  issuable  upon
                      conversion of shares of Preferred Stock, Series A;

                      (II) up to  1,000,000  shares  of Common  Stock  issued or
                      issuable  to  officers,  employees  or  directors  of,  or
                      advisors  or  consultants   to,  the  Corporation  or  any
                      subsidiary  of  the  Corporation,   pursuant  to  a  stock
                      purchase  or option  plan or other  employee  stock  bonus
                      arrangement  (collectively,  the "Plans")  approved by the
                      Board of Directors;  provided, however, that the number of
                      shares  referred  to in this  clause  shall be  subject to
                      equitable  adjustment  in accordance  with the  provisions
                      contained in said Plans whenever there shall occur a stock
                      dividend,    distribution,    combination    of    shares,
                      reclassification  or other  similar  event with respect to
                      Common Stock; and provided,  further,  that such number of
                      shares shall be  calculated by adding back to the unissued
                      portion of such pool of shares (or  options,  warrants  or
                      rights  therefor)  the  number  of such  shares  that  are
                      repurchased  by the  Corporation  and the  number  of such
                      shares  that  are  purchasable  under  any  such  options,
                      warrants or rights that expire unexercised; or (III) up to
                      250,000 shares of Common Stock or Preferred Stock issuable
                      upon the  exercise of warrants in  existence  on or before
                      the Original Issue Date.

              (ii) No  Adjustment  of  Conversion  Price.  No  adjustment in the
              number of shares of Common  Stock into which a share of  Preferred
              Stock, Series A is convertible shall be made, by adjustment in the
              Conversion  Price in respect of the issuance of Additional  Shares
              of Common Stock or otherwise,  unless the  consideration per share
              for an  Additional  Share of Common  Stock  issued or deemed to



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<PAGE>

              be issued by the Corporation is less than the Conversion  Price in
              effect on the date of, and immediately prior to, the issue of such
              Additional Share of Common Stock.

              (iii)   Issue of  Securities Deemed Issue of Additional Shares  of
              Common Stock

                  (A)  Options  and  Convertible  Securities.  In the  event the
                  Corporation  at any  time or  from  time  to  time  after  the
                  Original  Issue Date shall  issue any  Options or  Convertible
                  Securities or shall fix a record date for the determination of
                  holders of any class of  securities  entitled  to receive  any
                  such  Options  or  Convertible  Securities,  then the  maximum
                  number of  shares  (as set  forth in the  instrument  relating
                  thereto without regard to any provisions contained therein for
                  a  subsequent  adjustment  of such  number)  of  Common  Stock
                  issuable  upon the exercise of such Options or, in the case of
                  Convertible Securities and Options therefor, the conversion or
                  exchange of such Convertible Securities, shall be deemed to be
                  Additional  Shares  of Common  Stock  issued as of the time of
                  such  issue  or, in case such a record  date  shall  have been
                  fixed,  as of the  close  of  business  on such  record  date,
                  provided that  Additional  Shares of Common Stock shall not be
                  deemed to have been issued unless the  consideration per share
                  (determined  pursuant  to  Section  VI(d)(v)  hereof)  of such
                  Additional  Shares  of  Common  Stock  would be less  than the
                  Conversion  Price in  effect  on the  date of and  immediately
                  prior to such issue,  or such record date, as the case may be,
                  and provided further that in any such case in which Additional
                  Shares of Common Stock are deemed to be issued:

                           (I) no further  adjustment  in the  Conversion  Price
                      shall be made  upon the  subsequent  issue of  Convertible
                      Securities  or shares of Common Stock upon the exercise of
                      such Options or conversion or exchange of such Convertible
                      Securities;

                      (II) if such Options or  Convertible  Securities  by their
                      terms provide, with the passage of time or otherwise,  for
                      any   increase  in  the   consideration   payable  to  the
                      Corporation, or decrease in the number of shares of Common
                      Stock  issuable upon the exercise,  conversion or exchange
                      thereof,  the Conversion  Price computed upon the original
                      issue  thereof  (or upon the  occurrence  of a record date
                      with  respect  thereto),  and any  subsequent  adjustments
                      based thereon,  shall,  upon any such increase or decrease
                      becoming effective, be recomputed to reflect such increase
                      or  decrease  insofar  as it affects  such  Options or the
                      rights of  conversion or exchange  under such  Convertible
                      Securities;

                      (III)  upon  the  expiration  of any such  Options  or any
                      rights of  conversion or exchange  under such  Convertible
                      Securities  which  shall  not  have  been  exercised,  the
                      Conversion  Price computed upon the original issue thereof
                      (or upon the  occurrence  of a record  date  with  respect
                      thereto),  and any subsequent  adjustments  based thereon,
                      shall, upon such expiration, be recomputed as if:

                           (a) in the case of Convertible  Securities or Options
                           for Common Stock the only Additional Shares of Common
                           Stock issued were the shares of Common Stock, if any,
                           actually  issued upon the exercise of such Options or
                           the  conversion  or  exchange  of  such   Convertible
                           Securities and the  consideration  received  therefor
                           was  the  consideration   actually  received  by  the
                           Corporation  for  the  issue  of  all  such  Options,
                           whether  or not  exercised,  plus  the  consideration
                           actually   received  by  the  Corporation  upon  such
                           exercise,  or for the  issue of all such  Convertible
                           Securities   which   were   actually   converted   or
                           exchanged, plus the additional consideration, if any,
                           actually   received  by  the  Corporation  upon  such
                           conversion or exchange; and

                           (b) in the case of Options for Convertible Securities
                           only the  Convertible  Securities,  if any,  actually
                           issued upon the  exercise  thereof were issued at the
                           time of issue of such


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                           Options,  and  the  consideration   received  by  the
                           Corporation for the Additional Shares of Common Stock
                           deemed to have been then issued was the consideration
                           actually received by the Corporation for the issue of
                           all such Options, whether or not exercised,  plus the
                           consideration  deemed  to have been  received  by the
                           Corporation (determined pursuant to Section VI(d)(v))
                           upon the  issue of the  Convertible  Securities  with
                           respect  to  which   such   Options   were   actually
                           exercised;

                      (IV) no  readjustment  pursuant  to  clause  (II) or (III)
                      above shall have the effect of increasing  the  Conversion
                      Price to an amount which exceeds the  Conversion  Price in
                      effect on the original  adjustment date immediately  prior
                      to the Issue of the Options or Convertible Securities with
                      respect to which such readjustment is made;

                      (V) in the case of any Options which expire by their terms
                      not more than 30 days after the date of issue thereof,  no
                      adjustment of the Conversion Price shall be made until the
                      expiration or exercise of all such Options, whereupon such
                      adjustment  shall be made in the same  manner  provided in
                      clause (III) above; and

                      (VI) if such  record  date  shall have been fixed and such
                      Options or  Convertible  Securities  are not issued on the
                      date fixed therefor, the adjustment previously made in the
                      Conversion  Price which  became  effective  on such record
                      date shall be canceled as of the close of business on such
                      record date, and thereafter the Conversion  Price shall be
                      adjusted  pursuant to this  Section  VI(d)(iii)  as of the
                      actual date of their issuance.

                  (B) Stock Dividends,  Stock  Distributions and Subdivisions In
                  the  event  the  Corporation  at any time or from time to time
                  after  the  Original  Issue  Date  shall  declare  or pay  any
                  dividend or make any other  distribution  on the Common  Stock
                  payable  in  Common  Stock  or  effect  a  subdivision  of the
                  outstanding  shares of Common  Stock (by  reclassification  or
                  otherwise than by payment of a dividend in Common Stock), then
                  and in any such event, Additional Shares of Common Stock shall
                  be deemed to have been issued:

                      (I) in the  case of any  such  dividend  or  distribution,
                      immediately after the close of business on the record date
                      for  the   determination   of  holders  of  any  class  of
                      securities   entitled   to  receive   such   dividend   or
                      distribution, or

                      (II) in the case of any such subdivision,  at the close of
                      business  on the date  immediately  prior to the date upon
                      which corporation action becomes effective.

                      If such  record  date shall have been fixed and no part of
                      such  dividend  shall  have  been  paid on the date  fixed
                      therefor,   the   adjustment   previously   made  for  the
                      Conversion  Price which  became  effective  on such record
                      date shall be canceled as of the close of business on such
                      record date, and thereafter the Conversion  Price shall be
                      adjusted pursuant to this Section  VI(d)(iii)(B) as of the
                      time of actual payment of such dividend.

              (iv)  Adjustment of  Conversion  Price Upon Issuance of Additional
              Shares of Common Stock

                  (A) In the event the Corporation shall issue Additional Shares
                  of Common Stock  (including,  without  limitation,  Additional
                  Shares of Common Stock deemed to be issued pursuant to Section
                  VI(d)(iii)(A) but excluding  Additional Shares of Common Stock
                  deemed to be issued pursuant to Section  VI(d)(iii)(B),  which
                  event is dealt  with in  Section  VI(d)(vi)  hereof),  without
                  consideration  or for a consideration  per share less than the
                  applicable  Conversion  Price  in  effect  on the  date of and
                  immediately  prior to such issue, then and in such event, such
                  Conversion  Price  shall be  reduced,  concurrently  with such
                  issue, to a price


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                  (calculated  to the nearest cent)  determined  by  multiplying
                  such  Conversion  Price by a fraction,  the numerator of which
                  shall be (I) the number of shares of Common Stock  outstanding
                  immediately prior to such issue plus (II) the number of shares
                  of Common Stock which the aggregate  consideration received or
                  deemed to have been received by the  Corporation for the total
                  number of  Additional  Shares of Common  Stock so issued would
                  purchase at such  Conversion  Price,  and the  denominator  of
                  which  shall be (I) the  number  of  shares  of  Common  Stock
                  outstanding  immediately  prior to such  issue  plus  (II) the
                  number  of  Additional  Shares  of  Common  Stock so issued or
                  deemed to be issued.

                  (B) For the  purposes  of  Section  VI(d)(iv)(A)  hereof,  the
                  number  of shares of  Common  Stock  deemed to be  outstanding
                  immediately prior the issuance of any securities  described in
                  either  clause  of such  Section  shall  be the sum of (I) the
                  total number of shares of Common Stock issued and  outstanding
                  at such time,  plus (II) the total  number of shares of Common
                  Stock  issuable  upon  conversion  in  full of all  shares  of
                  Preferred  Stock,  Series A and other  Convertible  Securities
                  issued  and  outstanding  at such  time,  plus (III) the total
                  number of shares of Common Stock  issuable upon  conversion in
                  full of all Convertible  Securities  issuable upon exercise of
                  Options for Convertible  Securities  issued and outstanding at
                  such time;  and  immediately  after any  Additional  Shares of
                  Common   Stock  are   deemed   issued   pursuant   to  Section
                  VI(d)(iii)(A), such Additional Shares of Common Stock shall be
                  deemed to be outstanding.

                  (C) Notwithstanding anything to the contrary contained herein,
                  the  applicable   Conversion  Price  in  effect  at  the  time
                  Additional  Shares of Common  Stock are issued or deemed to be
                  issued shall not be reduced  pursuant to Section  VI(d)(iv)(A)
                  hereof at such time if the amount of such  reduction  would be
                  an  amount  less  than  $0.05,  but any such  amount  shall be
                  carried forward and reduction with respect thereto made at the
                  time of and  together  with any  subsequent  reduction  which,
                  together  with such amount and any other  amount or amounts so
                  carried forward, shall aggregate $0.05 or more.

              (v) Determination of  Consideration.  For purposes of this Section
              VI(d), the consideration received by the Corporation for the issue
              of any  Additional  Shares of Common  Stock  shall be  computed as
              follows:

                  (A)      Cash and PropertySuch consideration shall:

                      (I)  insofar as it  consists  of cash,  be computed at the
                      aggregate  amounts  of cash  received  by the  Corporation
                      excluding  amounts paid or payable for accrued interest or
                      accrued dividends;

                      (II)  insofar as it consists of property  other than cash,
                      be computed at the fair market  value  thereof at the time
                      of such issue, as determined in good faith by the Board of
                      Directors; and

                      (III) in the event  Additional  Shares of Common Stock are
                      issued  together  with other shares or securities or other
                      assets of the Corporation for  consideration  which covers
                      both, be the proportion of such consideration so received,
                      computed as provided in clauses  (A)(I) and (A)(II) above,
                      as determined in good faith by the Board of Directors.

                  (B) Options and Convertible  Securities The  consideration per
                  share received by the  Corporation  for  Additional  Shares of
                  Common  Stock  deemed to have been issued  pursuant to Section
                  VI(d)(iii)(A), relating to Options and Convertible Securities,
                  shall be determined by dividing (I) the total amount,  if any,
                  received or receivable by the Corporation as consideration


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                  for the issue of such Options or Convertible Securities,  plus
                  the minimum  aggregate amount of additional  consideration (as
                  set forth in the instruments relating thereto,  without regard
                  to any provision contained therein for a subsequent adjustment
                  of such  consideration)  payable to the  Corporation  upon the
                  exercise of such Options or the conversion or exchange of such
                  Convertible  Securities,   or  in  the  case  of  Options  for
                  Convertible  Securities,  the  exercise  of such  Options  for
                  Convertible  Securities and the conversion or exchange of such
                  Convertible  Securities,  by (II) the maximum number of shares
                  of  Common  Stock (as set  forth in the  instruments  relating
                  thereto, without regard to any provision contained therein for
                  a  subsequent  adjustment  of such number)  issuable  upon the
                  exercise of such Options or the conversion or exchange of such
                  Convertible Securities.

              (vi)  Adjustment  for  Dividends,   Distributions.   Subdivisions,
              Combinations or Consolidations of Common Stock

                  (A) Stock  Dividends,  Distributions  or  Subdivisions  In the
                  event the Corporation  shall issue Additional Shares of Common
                  Stock pursuant to Section  VI(d)(iii)(B)  in a stock dividend,
                  stock  distribution  or subdivision,  the Conversion  Price in
                  effect  immediately  prior  to  such  stock  dividend,   stock
                  distribution  or  subdivision  shall,  concurrently  with  the
                  effectiveness  of such stock dividend,  stock  distribution or
                  subdivision, be proportionately decreased.

                  (B)   Combinations   or   Consolidations   In  the  event  the
                  outstanding  shares  of  Common  Stock  shall be  combined  or
                  consolidated,  by reclassification or otherwise, into a lesser
                  number  of shares of Common  Stock,  the  Conversion  Price in
                  effect  immediately prior to such combination or consolidation
                  shall, concurrently with the effectiveness of such combination
                  or consolidation, be proportionately increased.

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

         (f)  Certificate  as  to  Adjustments.  Upon  the  occurrence  of  each
         adjustment or  readjustment  of the  Conversion  Price pursuant to this
         Section VI, the Corporation at its expense shall promptly  compute such
         adjustment  or  readjustment  in  accordance  with the terms hereof and
         furnish  to  each  affected  holder  of  Preferred  Stock,  Series  A 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 affected holder of Preferred  Stock,  Series A, furnish or cause to
         be furnished to such holder a like  certificate  setting forth (i) such
         adjustments and readjustments, (ii) the Conversion Price at the time in
         effect,  and (iii) the number of shares of Common Stock and the amount,
         if any,  of other  property  which at the time would be  received  upon
         conversion of each share of Preferred Stock, Series A.

         (g)  Notices  of  Record  Date.  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  which is the same as
         cash dividends paid in previous  quarters) or other  distribution,  the
         Corporation  shall mail to each holder of Preferred Stock,  Series A at
         least ten (10) days prior to such record date a notice  specifying  the
         date on which any such  record is to be taken for the  purpose  of such
         dividend or distribution.

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         (h) Common  Stock  Reserved.  The  Corporation  shall  reserve and keep
         available out of its authorized  but unissued  Common Stock such number
         of shares of Common Stock as shall from time to time be  sufficient  to
         effect the conversion of all shares of Preferred Stock, Series A.

         (i)  Certain  Taxes.  The  Corporation  shall pay any issue or transfer
         taxes  payable  in  connection  with the  conversion  of any  shares of
         Preferred  Stock,  Series A; provided,  however,  that the  Corporation
         shall not be required to pay any tax which may be payable in respect of
         any transfer to a name other than that of the holder of such  Preferred
         Stock, Series A.

         (j)  Closing  of  Books.  The  Corporation  shall at no time  close its
         transfer books against the transfer of any Preferred  Stock,  Series A,
         or of any shares of Common Stock issued or issuable upon the conversion
         of any  shares  of  Preferred  Stock,  Series  A, in any  manner  which
         interferes  with the timely  conversion  or transfer of such  Preferred
         Stock, Series A.

         We further declare under penalty of perjury under the laws of the State
of  California  that the  matters  set  forth in this  certificate  are true and
correct to our knowledge.

                                     /s/ George V. Franich
                                     -----------------------------------------
                                     George V. Franich, President

                                     /s/ Peter J. Caccioppoli
                                     -----------------------------------------
                                     Peter J. Caccioppoli, Secretary


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