Pursuant to the provisions of NMSA 1978, Section 53-11-16 (2001) and Article 4 of the Articles of Incorporation, as amended, of Biomoda, Inc. (the "Corporation"), the Board of Directors of the Corporation has duly adopted the following resolutions on August 22, 2011, establishing a series of Preferred Stock of the Corporation and fixing the designations, preferences, privileges and voting powers of such series and the restrictions and limitations thereon:
Redemption. The Corporation shall have the right to redeem the outstanding shares of Series B Preferred Stock at $600.00 per share (the "Redemption Amount"). To exercise this right, the Corporation must deliver to the holder an irrevocable written notice (a "Redemption Notice"), indicating the date the Corporation intends to pay the Redemption Amount (the "Redemption Date"). The holders of Series B Preferred Stock on the Redemption Date shall have the right to receive such amount in cash equal to the Redemption Amount per share of Series B Preferred Stock, such amount to be paid on the Redemption Date, and each share of Series B Preferred Stock shall have no further rights.