Document:

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                                                                     EXHIBIT 4.8

                          REGISTRATION RIGHTS AGREEMENT

               This REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT") is made and
entered into on and as of February 13, 2002 by and between E-Sync Networks,
Inc., a Delaware corporation (the "COMPANY"), and CRC, Inc., a New York
corporation ("CRC").

               WHEREAS, simultaneously with the execution of this Agreement, CRC
is providing certain loans to the Company, and it is a condition precedent to
CRC making such loans that the Company issue to CRC a certain Common Stock
Purchase Warrant (the "WARRANT") to purchase shares of Common Stock (as
hereinafter defined) and grant to CRC the registration rights provided for
herein.

               NOW, THEREFORE, the Parties hereto agree as follows:

1.      DEFINITIONS

        In addition to the terms defined elsewhere herein, when used herein the
following terms shall have the meanings indicated:

"COMMISSION" shall mean the Securities and Exchange Commission or any other
federal agency at the time administering the Securities Act.

"COMMON SHARES" shall mean the shares of Common Stock acquired by the Holders
upon exercise of the Warrant (subject to adjustment for stock splits, reverse
stock splits, stock dividends, or other similar transactions involving Common
Stock).

"COMMON STOCK" shall mean the common stock, par value $0.01 per share, of the
Company, and any capital stock of the Company into which such Common Stock
thereafter may be changed.

"COMMON STOCK EQUIVALENTS" shall mean (without duplication with any other Common
Stock or Common Stock Equivalents) rights, warrants, options (other than any
options issued pursuant to the Company's stock option plans), convertible
securities or convertible indebtedness, exchangeable securities or exchangeable
indebtedness, or other rights, exercisable for or convertible or exchangeable
into, directly or indirectly, Common Stock, whether at the time or upon the
occurrence of some future event.

"EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as amended.

"HOLDER" shall mean CRC, any Person that owns all or any part of the Warrant or
any Person that owns any of the Registrable Shares issuable upon exercise of the
Warrant, including successors and assigns of CRC or such Person.

"MATERIAL ADVERSE EFFECT" shall have the meaning set forth in Section 2(d).

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"PERSON" shall mean a natural person, corporation, general partnership, limited
partnership, limited liability company, joint stock company, joint venture,
association, company, trust, bank, trust company, land trust, business trust or
other organization, whether or not a legal entity, or a government or agency or
political subdivision thereof.

"REGISTRABLE SHARES" shall mean at any time (i) any Common Shares and (ii) any
shares of Common Stock issuable upon exercise or conversion by the Holders of
any Common Stock Equivalent; provided, however, that Registrable Shares shall
not include any shares (x) the sale of which has been registered pursuant to the
Securities Act and which shares have been sold pursuant to such registration,
(y) which have been sold to the public pursuant to Rule 144 (or any other
similar provision then in force) promulgated under the Securities Act ("RULE
144"), or (z) which may be sold without registration and without volume
limitations pursuant to Rule 144(k).

"SECURITIES ACT" shall mean the Securities Act of 1933, as amended.

2.      DEMAND REGISTRATION

(a)     REQUEST FOR REGISTRATION. At any time after the earlier of (i) the one
        (1) year anniversary of date hereof or (ii) such time as the closing bid
        price for the Common Stock equals at least five (5) times the closing
        bid price of the Common Stock on the date hereof, a Holder may make a
        written request to the Company (a "DEMAND REQUEST"), for the
        registration under the Securities Act of all or part of such Holder's
        Registrable Shares (a "DEMAND REGISTRATION") so as to permit a public
        offering and sale of such Registrable Shares for up to twelve (12)
        consecutive months in accordance with the manner specified in such
        notice; provided, however, that the Company shall not be obligated to
        register Registrable Securities pursuant to such request: (i) in any
        particular jurisdiction in which the Company would be required to
        qualify to do business or to execute a general consent to service of
        process in effecting such registration when it was not then so qualified
        and had not filed such a consent; (ii) if the Company determines upon
        advice of counsel to the Company that the filing of such a registration
        statement would require the disclosure of material non-public
        information about the Company, the disclosure of which could have a
        material adverse effect on the business or financial condition of the
        Company and provides written notice of such determination to the
        requesting Holders, in which event no such registration statement shall
        be filed until the earlier of the lapse of ninety (90) days from the
        date of delivery of such notice or the Company's determination that such
        information is no longer required to be disclosed, is not material or
        non-public or its disclosure would not have a material adverse effect on
        the business or financial condition of the Company; provided, however,
        that (A) the Company shall evaluate all relevant facts and circumstances
        no less often than once every thirty (30) days in order to determine
        whether such information is no longer required to be disclosed, is not
        material or non-public or its disclosure would not have a material
        adverse effect on the business or financial condition of the Company and
        shall promptly notify the requesting Holders of such determination; and
        (B) the Company may not exercise its right under this clause (ii) and
        clause (iii) below more than once in any 12-month period and the
        aggregate number of days of any such deferral shall not exceed 90; or
        (iii) if the Company is in the process of consummating an underwritten
        primary registration at the time that a Demand Request

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        is made, and the managing underwriters advise the Company in writing
        that in their reasonable opinion based upon market conditions such
        Demand Registration would have a Material Adverse Effect on the
        Company's underwritten primary registration; provided, however, that (A)
        a copy of such written opinion shall be promptly provided to each
        Requesting Holder; (B) within twenty (20) days after receiving such
        written opinion, the Holders of a majority of the Registrable Shares
        held by the Requesting Holders and for which registration was previously
        requested may withdraw such request by giving notice to the Company and,
        if so withdrawn, the Demand Request shall be deemed not to have been
        made for all purposes of this Agreement; and (C) a deferral of the
        filing of a registration statement pursuant to this clause (iii) shall
        be lifted, and the requested registration statement shall be filed
        forthwith upon the effectiveness of the Company's underwritten primary
        registration. Notwithstanding anything to the contrary contained herein,
        no request may be made under this Section 2(a) within 180 days after the
        effective date of a registration statement filed by the Company covering
        a firm commitment underwritten public offering in which the Holders of
        Registrable Securities shall have been entitled to join pursuant to this
        Section 2 or Section 3 hereof and in which there shall have been
        effectively registered all shares of Registrable Securities as to which
        registration shall have been so requested. Such request shall specify
        the number of Registrable Shares proposed to be sold and the intended
        method of disposition thereof. Upon receipt of such request, the Company
        shall promptly (but in any event within ten (10) days after receipt)
        give written notice of such registration request to all Holders. Such
        Holders shall have the right, by giving written notice to the Company
        within ten (10) days after the receipt of notice from the Company, to
        elect to have included in such registration all or part of their
        Registrable Shares as such Holders may request in such notice of
        election. Each such request will also specify the number of Registrable
        Shares to be registered and the intended method of disposition thereof.
        The Company shall file the Demand Registration within (i) forty-five
        (45) days if the Company is eligible to use Form S-3 or any substitute
        form adopted by the Commission ("SHORT-FORM REGISTRATION") or (ii) sixty
        (60) days if the Company is not eligible to use such Short-Term
        Registration, after receiving a Demand Request (the "REQUIRED FILING
        DATE") and shall use its best efforts to cause the same to be declared
        effective by the Commission as promptly as practicable after such
        filing. Notwithstanding the foregoing, in no event shall the Company be
        required to effect more than two (2) Demand Registrations pursuant to
        this Section 2(a); provided, however, that if a Holder elects to include
        all or part of such Holder's Registrable Shares in a Demand
        Registration, such registration shall not be counted as one of the
        registrations permitted hereunder unless such Holder is permitted to
        include in the Demand Registration all of the Registrable Shares that it
        desires to sell due to the limitations contained in Section 2(d) hereof.

(b)     EFFECTIVE REGISTRATION AND EXPENSES. A registration will not count as a
        Demand Registration until it has become effective (unless all Holders
        making or joining such request pursuant to Section 2(a) above (the
        "REQUESTING HOLDERS") withdraw all their Registrable Shares, in which
        case such demand will count as a Demand Registration unless the
        Requesting Holders pay all expenses in connection with such withdrawn
        registration); provided that if, after it has become effective, an
        offering of Registrable Shares pursuant to a registration is interfered
        with by any stop order, injunction, or other

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        order or requirement of the Commission or other governmental agency or
        court, such registration will be deemed not to have been effected.

(c)     SELECTION OF UNDERWRITERS. If the Holders of a majority of the
        Registrable Shares to be registered in a Demand Registration so elect,
        the offering of Registrable Shares pursuant to a Demand Registration
        shall be in the form of an underwritten public offering. The Requesting
        Holders who hold a majority of the Registrable Shares to be registered
        in the Demand Registration shall be entitled to select the investment
        banking firm or firms to manage the underwritten offering, subject to
        the approval of the Company (not to be unreasonably withheld).

(d)     PRIORITY ON DEMAND REGISTRATIONS. No securities to be sold for the
        account of any Person (including the Company and including any other
        holder of capital stock of the Company) other than Requesting Holders
        shall be included in a Demand Registration that is an underwritten
        public offering unless (i) the managing underwriter or underwriters
        shall advise the Company or the Requesting Holders in writing that the
        inclusion of such securities will not materially and adversely affect
        the price or success of the offering (a "MATERIAL ADVERSE EFFECT") and
        (ii) the Holders of not less than a majority of the Registrable Shares
        to be covered by such registration (calculated by using numbers of
        shares of Common Stock of the Company represented by such Registrable
        Shares on an as-if-converted basis) shall have consented in writing to
        the inclusion of such other securities. Furthermore, and subject to the
        immediately following sentence, in the event the managing underwriter or
        underwriters shall advise the Company or the Requesting Holders that
        even after exclusion of all securities of other Persons pursuant to the
        immediately preceding sentence, the amount of Registrable Shares
        proposed to be included in such Demand Registration by Requesting
        Holders is sufficiently large to cause a Material Adverse Effect, the
        Registrable Shares of Requesting Holders to be included in such Demand
        Registration shall be allocated pro rata among the Requesting Holders on
        the basis of the number of Registrable Shares requested to be included
        in such Demand Registration by each such Requesting Holder.

3.      PIGGYBACK REGISTRATION

(a)     RIGHT TO PIGGYBACK. If the Company proposes to file a registration
        statement under the Securities Act with respect to an equity security of
        the Company for its own account or for the account of any of its
        securityholders (other than pursuant to Section 2 and other than a
        registration statement on Form S-4 or S-8 (or any substitute forms
        adopted by the Commission)), then the Company shall give prompt written
        notice to the Holders of its intention to effect such a registration
        (which notice shall be given not less than thirty (30) days prior to the
        anticipated filing date of such registration statement) and such notice
        shall offer the Holders who are holders of Registrable Shares the
        opportunity to have any or all of their Registrable Shares included in
        such registration statement, subject to the limitations contained in
        Section 3(b) hereof. The Holders shall advise the Company in writing
        within twenty (20) days after the date of receipt of such notice from
        the Company of such Holder's desire to have their Registrable Shares
        registered under this Section 3. Subject to Section 3(b) below, the
        Company shall include in such registration statement all such
        Registrable Shares so requested to be included therein pursuant to the
        piggyback

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        rights granted under this Section 3(a); provided, however, that the
        Company may at any time withdraw or cease proceeding with any such
        registration if it shall at the same time withdraw or cease proceeding
        with the registration of all other equity securities originally proposed
        to be registered without any obligation to the Holders of any
        Registrable Securities. The Company (or such other Holders, as the case
        may be,) shall be entitled to select the investment banking firm or
        firms to manage any underwritten offering contemplated by this Section
        3(a).

(b)     PRIORITY ON REGISTRATIONS. If any managing underwriter advises the
        Company in writing that including all the shares of Common Stock
        requested to be included in the registration by all Persons (including
        the Company) would have a Material Adverse Effect, subject to the
        immediately following sentence, the Company will be obligated to include
        in such registration only Common Shares in the following priority: (i)
        first, if the registration statement has been proposed to be filed by
        the Company for its own account, any Common Stock for sale by the
        Company, and (ii) second, (x) if the registration statement has been
        proposed to be filed by the Company for its own account, pro rata among
        the Holders of the Registrable Shares requesting to be included in the
        registration based on the number of Registrable Shares, on an
        as-if-converted basis, requested to be included in such registration by
        each such Holder, or (y) if the registration statement has been proposed
        to be filed at the request and for the account of any of the Company's
        securityholders, pro rata among such requesting securityholders and the
        Holders of the Registrable Shares requesting to be included in the
        registration based on the number of shares of Common Stock, on an
        as-if-converted basis, requested to be included in such registration by
        each such Holder and each such securityholder, and (iii) third, in the
        event that all Common Stock for sale by the Company and all Registrable
        Shares requested to be included in such registration statement by the
        Holders of Registrable Shares and, if applicable, all Common Stock for
        sale by the requesting securityholders have been included in such
        registration, any other Common Stock requested to be included pursuant
        to any other registration rights that may hereafter be and to the extent
        granted by the Company (pro rata on the basis of the total number of
        shares of Common Stock that each holder of such shares has requested to
        be registered).

4.      MISCELLANEOUS REGISTRATION RIGHTS PROVISIONS

(a)     HOLDBACK AGREEMENT. If the Company previously shall have received a
        request for registration pursuant to Section 2 hereof or any Holder
        shall have requested to have such Holder's Registrable Shares registered
        pursuant to Section 3 hereof, and if such previous registration shall
        not have been withdrawn or abandoned, the Company agrees (A) not to
        effect any public sale or distribution of its equity securities, or any
        securities convertible into or exchangeable or exercisable for such
        securities, during the seven days prior to and during the 180-day period
        beginning on the effective date of such previous registration, and (B)
        to use its best efforts to cause each officer and director of the
        Company or any of its subsidiaries and each other holder of 5% or more
        of its equity securities (or any securities convertible into or
        exchangeable for such securities), on a fully diluted basis purchased
        from the Company at any time (other than in a registered public
        offering), to agree not to effect any public sale or distribution
        (including sales pursuant to Rule 144) of any such securities during
        such period (except as part of such registration, if otherwise

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        permitted), unless the Holders of a majority of the Registrable Shares
        to be registered in such registration agree. Additionally, each Holder
        of Registrable Securities agrees, if so required by the managing
        underwriter of the public offering, not to effect any public sale or
        distribution of securities of the Company of the same class as the
        securities included in such registration statement, during the seven (7)
        days prior to the date on which any underwritten registration pursuant
        to Section 2 or 3 has become effective and the ninety (90) days (or such
        longer period as shall have been agreed to by all of the holders of
        securities included in such registration statement other than the
        Holders of Registrable Securities) thereafter, except as part of such
        underwritten registration or to the extent that such Holder is
        prohibited by applicable law from agreeing to withhold Registrable
        Securities from sale or is acting in its capacity as a fiduciary or an
        investment adviser. The Company agrees not to effect any public sale or
        distribution of its equity securities or securities convertible into or
        exchangeable or exercisable for any of such securities during the seven
        (7) days prior to and the ninety (90) days after any underwritten
        registration pursuant to Section 2 or 3 has become effective, except as
        part of such underwritten registration.

(b)     REGISTRATION PROCEDURES. Whenever the Holders have requested that any
        Registrable Shares be registered pursuant to this Agreement, the Company
        will use its best efforts to effect the registration and the sale of
        such Registrable Shares in accordance with the intended method of
        disposition thereof, and pursuant thereto the Company will as
        expeditiously as possible:

        (i)    prepare and, subject to Section 2(e), file with the Commission a
               registration statement on any appropriate form under the
               Securities Act, with respect to such Registrable Shares and use
               its best efforts to cause such registration statement to become
               effective at the earliest possible time (provided that before
               filing a registration statement or prospectus or any amendments
               or supplements thereto, the Company will furnish to the counsel
               selected by the Holders of a majority of the Registrable Shares
               covered by such registration statement copies of all such
               documents proposed to be filed);

        (ii)   prepare and file with the Commission and notify each seller of
               such Registrable Shares immediately after the filing of such
               amendments, post-effective amendments, and supplements to such
               registration statement and the prospectus used in connection
               therewith as may be necessary to keep such registration statement
               effective for a period of not less than 180 days, in the case of
               a piggyback registration, or 360 days in the case of a Demand
               Registration (or such lesser periods as is necessary for the
               underwriters in an underwritten offering to sell unsold
               allotments) and comply with the provisions of the Securities Act
               with respect to the disposition of all securities covered by such
               registration statement during such period in accordance with the
               intended methods of disposition by the sellers thereof set forth
               in such registration statement;

        (iii)  furnish to each seller of Registrable Shares and the underwriters
               of the securities being registered such number of copies of such
               registration statement, each amendment and supplement thereto (in
               each case including all exhibits), the

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               prospectus included in such registration statement (including
               each preliminary and summary prospectus) and any other prospectus
               filed under Rule 424 or Rule 430-A under the Securities Act, and
               such other documents as such seller or underwriters may
               reasonably request in order to facilitate the disposition of the
               Registrable Shares owned by such seller or the sale of such
               securities by such underwriters;

        (iv)   use its best efforts to register or qualify such Registrable
               Shares under such other securities or blue sky laws of such
               jurisdictions as the managing underwriter and each seller
               reasonably requests, to keep such registration or qualification
               in effect for so long as such registration statement remains in
               effect, and do any and all other acts and things which may be
               reasonably necessary or advisable to enable such seller to
               consummate the disposition of the Registrable Shares owned by
               such seller in such jurisdictions (provided, however, that the
               Company will not be required to (A) qualify generally to do
               business in any jurisdiction where it would not otherwise be
               required to qualify but for this subparagraph, (B) consent to
               general service of process in any such jurisdiction or (C)
               subject itself to any taxation (other than stamp taxes) in any
               such jurisdiction);

        (v)    notify each seller of Registrable Shares promptly after it shall
               receive notice thereof, of the time when such registration
               statement has become effective;

        (vi)   notify each seller of Registrable Shares promptly of any request
               by the Commission for the amending or supplementing of such
               registration statement or prospectus or for additional
               information;

        (vii)  provide a transfer agent and registrar for all Registrable Shares
               sold under the registration not later than the effective date of
               the registration statement;

        (viii) furnish to each Holder participating in the registration a signed
               counterpart, addressed to such Holder (a) of an opinion of
               counsel as to such matters that are customarily covered in an
               opinion of counsel delivered to an underwriter, including that
               the registration is valid and effective and such other matters as
               such Holder may reasonably request and (b) of a "cold comfort"
               letter signed by the independent public accountants who have
               issued a report on the Company's financial statements included in
               the registration statement, covering substantially the same
               matters with respect to such registration statement (and the
               prospectus included therein) and, in the case of such
               accountant's letter, with respect to events subsequent to the
               date of such financial statements, as are customarily delivered
               to underwriters in underwritten public offerings of securities
               and such other financial matters as such Holder may reasonably
               request;

        (ix)   advise each seller of such Registrable Shares, promptly after it
               shall receive notice or obtain knowledge thereof, of the issuance
               of any stop order by the Commission suspending the effectiveness
               of such registration statement or of any order suspending or
               preventing the use of any related prospectus or suspending the
               qualification of any common stock included in such registration
               statement for sale

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               in any jurisdiction or the initiation or threatening of any
               proceeding for such purpose and promptly use reasonable best
               efforts to prevent the issuance of any stop order or to obtain
               its withdrawal if such stop order should be issued;

        (x)    notify each seller of Registrable Shares covered by such
               registration statement at any time when a prospectus relating
               thereto is required to be delivered under the Securities Act,
               upon discovery that, or upon the happening of any event as a
               result of which, the prospectus included in such registration
               statement, as then in effect, includes an untrue statement of a
               material fact or omits to state any material fact required to be
               stated therein or necessary to make the statements therein not
               misleading in the light of the circumstances under which they
               were made, and at the request of any such seller promptly
               prepare, file with the Commission and to furnish such seller a
               reasonable number of copies of a supplement to or an amendment of
               such prospectus as may be necessary so that, as thereafter
               delivered to the purchasers of such securities, such prospectus
               shall not include an untrue statement of a material fact required
               to be stated therein or necessary to make the statements therein
               not misleading in the light of the circumstances under which they
               were made;

        (xi)   otherwise use its reasonable efforts to comply with all
               applicable rules and regulations of the Commission, and make
               available to its securityholders, as required, as soon as
               reasonably practicable, an earnings statement covering the period
               of at least twelve months, but not more than eighteen months,
               beginning with the first full calendar month after the effective
               date of such registration statement, which earnings statement
               shall satisfy the provisions of Section 11(a) of the Securities
               Act, and Rule 158 promulgated thereunder and will furnish to each
               such seller at least two business days prior to the filing
               thereof a copy of any amendment or supplement to such
               registration statement or prospectus and shall not file any
               thereof to which any such seller shall have reasonably objected
               on the grounds that such amendment or supplement does not comply
               in all material respects with the requirements of the Securities
               Act or of the rules or regulations thereunder;

        (xii)  use its reasonable best efforts to list all Registrable Shares
               covered by such registration statement on any securities exchange
               on which similar securities of the Company are then listed;

        (xiii) enter into such customary agreements (including underwriting
               agreements in customary form) and take such other customary
               actions as the Holders of Registrable Shares or the underwriters,
               if any, shall reasonably request in order to expedite or
               facilitate the disposition of such Registrable Shares;

        (xiv)  make available for reasonable inspection by any seller of
               Registrable Shares, any underwriter participating in any
               disposition pursuant to such registration statement and any
               attorney, accountant or other agent retained by any such seller
               or underwriter, all financial and other records, pertinent
               corporate documents and properties of the Company, and cause the
               Company's officers, directors,

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               employees and independent accountants to supply all information
               reasonably requested by any such sellers, underwriter, attorney,
               accountant or agent in connection with such registration
               statement;

        (xv)   deliver promptly to each Holder participating in an offering who
               so requests the file correspondence and memoranda described
               below, copies of all correspondence between the Commission and
               the Company, its counsel or auditors with respect to the
               registration statement and permit each Holder to do such
               investigation, upon reasonable advance notice, with respect to
               information contained in or omitted from the registration
               statement as it deems reasonably necessary to comply with
               applicable securities laws or the rules and regulations of the
               NASD. Such investigation shall include reasonable access to
               books, records and properties and opportunities to discuss the
               business of the Company with its officers and independent
               auditors, all to such reasonable extent and at such reasonable
               times and as often as any such Holder shall reasonably request;
               and

        (xvi)  permit any Holder of Registrable Shares, which holder, in its
               sole and exclusive judgment, might be deemed to be an underwriter
               or a controlling person of the Company, to participate in the
               preparation of such registration or comparable statement and to
               require the insertion therein of materials, furnished to the
               Company in writing, which in the reasonable judgment of such
               Holder and its counsel should be included.

        If any such registration or comparable statement refers to any Holder by
        name or otherwise as the holder of any securities of the Company and if,
        in its sole and exclusive judgment, such Holder is or might be deemed to
        be a controlling person of the Company, such Holder shall have the right
        to require (i) the insertion therein of language, in form and substance
        satisfactory to such Holder and presented to the Company in writing, to
        the effect that the holding by such Holder of such securities is not to
        be construed as a recommendation by such Holder of the investment
        quality of the Company's securities covered thereby and that such
        holding does not imply that such Holder will assist in meeting any
        future financial requirements of the Company, or (ii) in the event that
        such reference to such Holder by name or otherwise is not required by
        the Securities Act or any similar federal statute then in force, the
        deletion of the reference to such Holder; provided that with respect to
        this clause (ii) such Holder shall furnish to the Company an opinion of
        counsel to such effect, which opinion and counsel shall be reasonably
        satisfactory to the Company.

        The Company may require each Holder of Registrable Shares to be included
        in such registration statement to promptly furnish in writing to the
        Company such information regarding the distribution of the Registrable
        Shares as the Company may from time to time reasonably request and any
        such other information as may be legally required in connection with
        such registration.

(c)     SUSPENSION OF DISPOSITIONS. Each Holder agrees by acquisition of any
        Registrable Shares that, upon receipt of any notice (a "SUSPENSION
        NOTICE") from the Company of the happening of any event of the kind
        which, in the opinion of the Company, requires the

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        amendment or supplement of any prospectus, such Holder will forthwith
        discontinue disposition of Registrable Shares until such Holder's
        receipt of the copies of the supplemented or amended prospectus (which
        the Company shall prepare and file as promptly as practicable), or until
        it is advised in writing (the "ADVICE") by the Company that the use of
        the prospectus may be resumed, and such Holder has received copies of
        any additional or supplemental filings which are incorporated by
        reference in the prospectus, and, if so directed by the Company, such
        Holder will deliver to the Company all copies, other than permanent file
        copies then in such Holder's possession, of the prospectus covering such
        Registrable Shares current at the time of receipt of such notice. In the
        event the Company shall give any such notice, the time period regarding
        the effectiveness of registration statements set forth in Section
        4(b)(ii) hereof shall be extended by the number of days during the
        period from and including the date of the giving of the Suspension
        Notice to and including the date when each seller of Registrable Shares
        covered by such registration statement shall have received the copies of
        the supplemented or amended prospectus or the Advice.

(d)     REGISTRATION EXPENSES. All expenses incident to the Company's
        performance of or compliance with this Agreement including, without
        limitation, all registration and filing fees, reasonable fees and
        expenses of one legal counsel for all Holders of Registrable Shares to
        be included in the registration statement (up to a maximum of $15,000 in
        the aggregate if such registration is on a Short-Form Registration), all
        fees and expenses associated with filings required to be made with the
        NASD (including, if applicable, the fees and expenses of any "qualified
        independent underwriter" as such term is defined in Schedule E of the
        By-Laws of the NASD, and of its counsel), as may be required by the
        rules and regulations of the NASD, fees and expenses of compliance with
        securities or "blue sky" laws (including reasonable fees and
        disbursements of counsel in connection with "blue sky" qualifications of
        the Registrable Shares), all word processing, duplicating and printing
        expenses (including expenses of printing certificates for the
        Registrable Shares and of printing prospectuses if the printing of
        prospectuses is requested by a Holder of Registrable Shares) (provided,
        however, that the manner and form of printing the registration statement
        and prospectuses shall be at the sole discretion of the Company),
        messenger and delivery expenses, fees and expenses of counsel for the
        Company and its independent certified public accountants (including the
        expenses of any special audit or "cold comfort" letters required by or
        incident to such performance), securities acts liability insurance (if
        the Company elects to obtain such insurance), the fees and expenses of
        any special experts retained by the Company in connection with such
        registration, the fees and expenses of underwriters customarily paid by
        issuers or sellers of securities (including fees paid to a qualified
        independent underwriter but excluding underwriting discounts and
        commissions), and the fees and expenses of other persons retained by the
        Company (all such expenses being herein called "REGISTRATION EXPENSES")
        will be borne by the Company whether or not any registration statement
        becomes effective; provided that in no event shall Registration Expenses
        include any underwriting discounts, commissions, or any out of pocket
        expenses of the Holders (or agents who manage their accounts) other than
        as expressly provided above.

(e)     REQUIREMENTS TO PARTICIPATE. No Holder may participate in any
        registration hereunder unless such Holder (x) agrees to sell such
        Holder's Registrable Shares on the basis

                                      -10-
<PAGE>

        provided in any underwriting arrangements approved by the Company and
        (y) completes and executes all questionnaires, powers of attorney,
        indemnities, underwriting agreements, and other documents required under
        the terms of such underwriting arrangements; provided, however, that no
        such Holder shall be required to make any representations or warranties
        in connection with any such registration other than representations and
        warranties as to (i) such Holder's ownership of such Holder's
        Registrable Shares to be sold or transferred free and clear of all
        liens, claims, and encumbrances, (ii) such Holder's power and authority
        to effect such transfer, and (iii) such matters pertaining to compliance
        with securities laws as may be reasonably requested; provided further,
        however, that the obligation of such Holder to indemnify pursuant to any
        such underwriting arrangements shall be several, not joint and several,
        among such Persons selling securities thereunder, and the liability of
        each such Holder will be in proportion to and limited to the net amount
        received by such Holder from the sale of such Holder's Registrable
        Shares pursuant to such registration.

5.      INDEMNIFICATION

(a)     The Company agrees to indemnify and hold harmless, to the fullest extent
        permitted by law, each seller of Registrable Shares, and each of its
        employees, advisors, agents, representatives, partners, officers,
        directors and affiliates and each Person who controls such seller
        (within the meaning of the Securities Act or the Exchange Act)
        (collectively, the "SELLER AFFILIATES") and each other Person who
        participated as an underwriter in the offering or sale of such
        securities and each of its employees, advisors, agents, representatives,
        partners, officers, directors and affiliates and each Person who
        controls such underwriters (within the meaning of the Securities Act or
        the Exchange Act) (i) against any and all losses, claims, damages,
        liabilities and expenses (including, without limitation, reasonable
        attorneys' fees except as limited by Section 5(c) below) arising out of
        or caused by any untrue or alleged untrue statement of a material fact
        contained in any registration statement, preliminary prospectus, final
        prospectus, summary prospectus, or any amendment thereof or supplement
        thereto if the Company shall have furnished any amendments or
        supplements, or any omission or alleged omission of a material fact
        required to be stated therein or necessary to make the statements
        therein not misleading, (ii) against any and all losses, claims,
        damages, liabilities and expenses whatsoever, as incurred, to the extent
        of the aggregate amount paid in settlement of any litigation or
        investigation or proceeding by any governmental agency or body,
        commenced or threatened, or of any claim whatsoever based upon any such
        untrue statement or omission or alleged untrue statement or omission,
        and (iii) against any and all costs and expenses (including reasonable
        fees and disbursements of counsel) as may be reasonably incurred in
        investigating, preparing, or defending against any litigation, or
        investigation or proceeding by any governmental agency or body,
        commenced or threatened, or any claim whatsoever based upon any such
        untrue statement or omission or alleged untrue statement or omission, to
        the extent that any such expense or cost is not paid under subparagraph
        (i) or (ii) above; except insofar as the same are made in reliance upon
        and in strict conformity with information furnished in writing to the
        Company by such seller or any Seller Affiliate for use therein. The
        reimbursements required by this Section 5(a) will be made by periodic
        payments during the course of the investigation or defense, as and when
        bills are received or expenses incurred.

                                      -11-
<PAGE>

(b)     In connection with any registration statement in which a seller of
        Registrable Shares is participating, each such seller will furnish to
        the Company in writing such information and affidavits as the Company
        reasonably requests for use in connection with any such registration
        statement or prospectus and, to the fullest extent permitted by law,
        each such seller will indemnify the Company, its directors, agents,
        officers and each Person who controls the Company (within the meaning of
        Section 15 of the Securities Act or Section 20 of the Exchange Act) to
        the same extent as the foregoing indemnity from the Company to such
        seller and its Seller Affiliates, but only to the extent that such
        untrue statement or alleged untrue statement or omission or alleged
        omission is contained in any information or affidavit so furnished in
        writing by such seller or any of its Seller Affiliates for specific
        inclusion in such registration statement; provided that the obligation
        to indemnify will be several, not joint and several, among such sellers
        of securities thereunder, and the liability of each such seller will be
        in proportion and limited to the net amount received by such seller from
        the sale of such seller's Registrable Securities pursuant to such
        registration statement.

(c)     Any Person entitled to indemnification hereunder will (i) give prompt
        written notice to the indemnifying party of any claim with respect to
        which it seeks indemnification (provided that the failure to give such
        notice shall not limit the rights of such Person) and (ii) unless in
        such indemnified party's reasonable judgment a conflict of interest
        between such indemnified and indemnifying parties may exist with respect
        to such claim, permit such indemnifying party to assume the defense of
        such claim with counsel reasonably satisfactory to the indemnified
        party; provided, however, that any person entitled to indemnification
        hereunder shall have the right to employ separate counsel and to
        participate in the defense of such claim, but the fees and expenses of
        such counsel shall be at the expense of such person unless (X) the
        indemnifying party has agreed to pay such fees or expenses, (Y) the
        indemnifying party shall have failed to assume the defense of such claim
        and employ counsel reasonably satisfactory to such person or (Z) in the
        reasonable judgment of any indemnified party, a conflict of interest may
        exist between such indemnified party and any other of such indemnified
        parties with respect to such claim. An indemnifying party will not be
        obligated to pay the fees and expenses of more than one counsel for all
        parties indemnified by such indemnifying party with respect to such
        claim. If such defense is assumed by the indemnified party as permitted
        hereunder, the indemnifying party will not be subject to any liability
        for any settlement made by the indemnified party without its written
        consent (which consent shall not be unreasonably withheld). If such
        defense is assumed by the indemnifying party pursuant to the provisions
        hereof, such indemnifying party shall not settle or otherwise compromise
        the applicable claim unless (1) such settlement or compromise contains a
        full and unconditional release of the indemnified party from all
        liabilities arising out of such proceeding or (2) the indemnified party
        otherwise consents in writing.

(d)     Each party hereto agrees that, if for any reason the indemnification
        provisions contemplated by Section 5(a) or Section 5(b) are unavailable
        to or insufficient to hold harmless an indemnified party in respect of
        any losses, claims, damages, liabilities or expenses (or actions in
        respect thereof) referred to therein, then each indemnifying party shall
        contribute to the amount paid or payable by such indemnified party as a
        result of such losses, claims, liabilities, or expenses (or actions in
        respect thereof) in such

                                      -12-
<PAGE>

        proportion as is appropriate to reflect the relative fault of the
        indemnifying party and the indemnified party as well as any other
        relevant equitable considerations. The relative fault of such
        indemnifying party and indemnified party shall be determined by
        reference to, among other things, whether the untrue or alleged untrue
        statement of a material fact or omission or alleged omission to state a
        material fact relates to information supplied by such indemnifying party
        or indemnified party, and the parties' relative knowledge, access to
        information and opportunity to correct or prevent such statement or
        omission. The parties hereto agree that it would not be just and
        equitable if contribution pursuant to this Section 5(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 this Section
        5(d). The amount paid or payable by an indemnified party as result of
        the losses, claims, damages, liabilities or expenses (or actions in
        respect thereof) referred to above shall be deemed to include any legal
        or other fees or expenses reasonably incurred by such indemnified party
        in connection with investigating or, except as provided in Section 5(c),
        defending any such action or claim. Notwithstanding the provisions of
        this Section 5(d), no Holder shall be required to contribute an amount
        greater than the dollar amount of the proceeds received by such Holder
        with respect to the sale of any Registrable Shares. No person guilty of
        fraudulent misrepresentation (within the meaning of Section 11(f) of the
        Securities Act) shall be entitled to contribution from any person who
        was not guilty of such fraudulent misrepresentation. The Holders'
        obligations in this Section 5(d) to contribute shall be several in
        proportion to the amount of Registrable Shares registered by them and
        not joint.

(e)     The indemnification provided for under this Agreement will remain in
        full force and effect regardless of any investigation made by or on
        behalf of the indemnified party or any officer, director or controlling
        Person of such indemnified party and will survive the transfer of
        securities.

6.      REPRESENTATIONS AND WARRANTIES

        The Company represents and warrants to the Holders that:

(a)     The Company is a corporation duly organized and validly existing and in
        good standing under the laws of the State of Delaware, and has corporate
        power and corporate authority to own, operate, and lease its properties
        and conduct its business as now conducted. The Company is duly qualified
        to do business and is in good standing in all jurisdictions in which the
        failure to so qualify would have a material adverse effect on the
        operations, business, financial conditions, assets, or liabilities of
        the Company and its subsidiaries, taken as a whole.

(b)     The Company has the corporate power and is duly authorized and empowered
        to enter into and perform its obligations under this Agreement. This
        Agreement has been duly and validly executed, issued, and delivered and
        constitutes the legal, valid, and binding obligation of the Company.

                                      -13-
<PAGE>

(c)     The execution, delivery, and performance of this Agreement by the
        Company shall not, by the lapse of time, the giving of notice or
        otherwise, constitute a violation of any applicable statute, law, rule
        or regulation of any governmental authority, any applicable provision
        contained in the certificate of incorporation or bylaws of the Company
        or contained in any agreement, instrument, or document to which the
        Company is a party or by which it is bound, or any order, ruling,
        judgment or decree of any court, arbitral body or governmental
        authority.

7.      ARBITRATION AND DISPUTE RESOLUTION

        The parties hereto agree that any and all disputes, claims or
controversies arising out of or relating to this Agreement that are not resolved
by their mutual agreement shall be submitted to final and binding arbitration
before JAMS, or its successor, pursuant to the United States Arbitration Act, 9
U.S.C. Sec. 1, et seq. Either party may commence the arbitration process called
for in this Agreement by filing a written demand for arbitration with JAMS, with
a copy to the other party. The arbitration will be conducted in accordance with
the provisions of JAMS' Comprehensive Arbitration Rules and Procedures in effect
at the time of filing of the demand for arbitration. The parties will cooperate
with JAMS and with one another in selecting an arbitrator from JAMS' panel of
neutrals, and in scheduling the arbitration proceedings. The parties covenant
that they will participate in the arbitration in good faith, and that they will
share equally in its costs. The provisions of this paragraph may be enforced by
any court of competent jurisdiction, and the party seeking enforcement shall be
entitled to an award of all costs, fees and expenses, including attorneys fees,
to be paid by the party against whom enforcement is ordered.

8.      COMPLIANCE WITH RULE 144

        With a view to making available the benefits of certain rules and
regulations of the Commission which may at any time permit the sale of
Registrable Shares to the public without registration, at all times, the Company
agrees to:

(a)     Make and keep available adequate current public information, as those
        terms are understood and defined in Rule 144 under the Securities Act,
        at all times after it has become subject to the reporting requirements
        of the Exchange Act;

(b)     Use its best efforts to file with the Commission in a timely manner all
        reports and other documents required of the Company under the Securities
        Act and the Exchange Act; and

(c)     Furnish to each Holder of Registrable Shares forthwith upon request a
        written statement by the Company as to its compliance with the reporting
        requirements of such Rule 144 ninety (90) days after any registration
        statement covering a public offering of securities of the Company under
        the Securities Act shall have become effective, and of the Securities
        Act and the Exchange Act, a copy of the most recent annual or quarterly
        report of the Company, and such other reports and documents so filed by
        the Company as such Holder may reasonably request availing itself of any
        rule or regulation of the Commission allowing such Holder to sell any
        Registrable Shares without registration.

                                      -14-
<PAGE>

9.      SUBSEQUENT INVESTORS

        The Company shall not grant registration rights or enter into any
registration rights agreement or similar agreement with any Person which are
equal to, superior to or conflict, impair or interfere in any way with the
rights granted hereunder, without the consent of Holders, at the time of
determination, of 70% of the Registrable Shares (based on the number of shares
of Common Stock underlying the Registrable Shares on an as-if converted basis).

10.     TERMINATION

        The provisions of this Agreement shall terminate upon the date on which
there are no longer any Registrable Shares.

11.     NOTICES

        All notices and communications to be given or otherwise to be made to
any party to this Agreement shall be deemed to have been duly given or delivered
by any party, (i) when received by such party if delivered by hand, (ii) upon
confirmation when delivered by telecopy, or (iii) within one day after being
sent by recognized overnight delivery service, and in each case addressed as
follows:

        If to the Company:

                             E-Sync Networks, Inc.
                             c/o Michael A. Clark
                             20 Hill Street
                             Millford, Connecticut 06460
                             Telecopy: (203) 601-3151

        If to any other party, as indicated on the signature pages hereto.

        Any party by written notice to the other parties pursuant to this
Section 11 may change the address or the Persons to whom notices or copies
thereof shall be directed.

12.     SUCCESSORS AND ASSIGNS

        This Agreement shall be binding upon the parties hereto and their
respective successors and assigns.

13.     MODIFICATION

        Except as otherwise provided herein, neither this Agreement nor any
provision hereof can be amended, modified, changed, discharged, waived or
terminated (each, an "AMENDMENT") except by an instrument in writing executed in
good faith by the Company and the Holders, at the time of determination, of 70%
of Registrable Shares (based on the number of shares of Common Stock underlying
the Registrable Shares on an as-if converted basis), in which event such
Amendment shall be binding upon all of the Parties in accordance with its terms.

                                      -15-
<PAGE>

14.     WAIVER

        Any waiver by any party of a breach of any provision of this Agreement
shall not operate as or be construed to be a waiver of any other breach of that
provision or of any breach of any other provision of this Agreement. The failure
of a party to insist upon strict adherence to any term of this Agreement on one
or more occasions shall not be considered a waiver or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term
of this Agreement. Subject to the provisions of Section 13 hereof, any waiver
must be evidenced by a writing signed by the party against whom the waiver is
sought to be enforced.

15.     AVAILABILITY OF EQUITABLE REMEDIES

        Each party hereto acknowledges that a breach of the provisions of this
Agreement could not adequately be compensated by money damages. Accordingly, it
is the intention of the parties that any party shall be entitled, in addition to
any other right or remedy available to it, to an injunction restraining such
breach or a threatened breach and/or to specific performance of any such
provision of this Agreement, and in either case no bond or other security shall
be required in connection therewith, and the parties hereby consent to such
injunction and to the ordering of specific performance.

16.     ENTIRE AGREEMENT

        This Agreement sets forth the entire understanding, and supersedes all
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter hereof.

17.     SEVERABILITY

        If any provision of this Agreement shall be determined to be illegal or
unenforceable by any court of law of competent jurisdiction, the Parties intend
that such provision shall be deemed not to form part of this Agreement and, the
remaining provisions shall be severable and enforceable in accordance with their
terms.

18.     GOVERNING LAW

        This Agreement shall be governed by, interpreted under and construed in
accordance with the internal laws of the State of New York applicable to
contracts executed and to be performed wholly in that state without giving
effect to the choice or conflict of laws principles or provisions thereof. Each
of the parties hereto hereby irrevocably submits to the jurisdiction of any
state or federal court sitting in the City, County and State of New York in
respect of any enforcement proceeding arising out of or relating to this
Agreement, which courts shall have exclusive jurisdiction over and with respect
to any such enforcement proceeding, and irrevocably accepts for itself and in
respect of its property, generally and unconditionally, jurisdiction of the
aforesaid courts. Each of the parties hereto hereby irrevocably waives, to the
fullest extent such party may effectively do so under applicable law, trial by
jury and any objection that such party may now or hereafter have to the laying
of venue of any such enforcement proceeding brought in any such court and any
claim that any such enforcement proceeding brought in any such court has been
brought in an inconvenient forum. Nothing herein shall affect the right of any
party

                                      -16-
<PAGE>

hereto to serve process in any manner permitted by law or to commence
enforcement proceedings or otherwise proceed against the other party in any
other jurisdiction.

19.     CAPTIONS

        The captions herein are inserted for convenience only and shall not
define, limit, extend or describe the scope of this Agreement or affect the
construction hereof.

20.     COUNTERPARTS

        This Agreement may be executed in two or more counterparts (and via
facsimile), each of which shall be deemed to be an original, but all of which
taken together shall constitute one and the same instrument.

                                      -17-
<PAGE>

               IN WITNESS WHEREOF, this Agreement has been executed and
delivered as of the date first set forth above.

                                    E-SYNC NETWORKS, INC.

                                    By:   /s/ Michael A. Clark
                                        ----------------------------------------
                                    Name: Michael A. Clark
                                    Title: President and Chief Operating Officer

                                    CRC, INC.

                                    By:   /s/ Joshua Wurzburger
                                        ----------------------------------------
                                    Name: Joshua Wurzburger
                                    Title: President

                                    Address for Notices:
                                    1290 Avenue of the Americas, 39th Floor
                                    New York, New York 10104
                                    Telecopy: (212) 906-9500
                                    Attention: President<PAGE>
                                                                     EXHIBIT 4.9

                    CERTIFICATE OF DESIGNATIONS, PREFERENCES

                                  AND RIGHTS OF

                   SENIOR CONVERTIBLE SERIES C PREFERRED STOCK

                                       OF

                              E-SYNC NETWORKS, INC.

                                      * * *

        E-Sync Networks, Inc., a corporation organized and existing under the
General Corporation Law of the State of Delaware,

        DOES HEREBY CERTIFY:

        That, pursuant to authority conferred upon the Board of Directors by the
Certificate of Incorporation of said corporation, and pursuant to the provisions
of Section 151 of Title 8 of the Delaware Code of 1953, said Board of Directors
adopted a resolution by the unanimous written consent of its members, filed with
the minutes of the Board, providing for the issuance of a new series of
preferred stock designated as "Senior Convertible Series C Preferred Stock",
which resolution is as follows:

        RESOLVED that, pursuant to the authority vested in the Board of
Directors of E-Sync Networks, Inc., a Delaware corporation (the "Company") in
accordance with the provisions of the Certificate of Incorporation of the
Company (the "Certificate of Incorporation"), a series of the class of
authorized Preferred Stock, par value $0.01 per share, of the Company, is hereby
created and that the designation and number of shares thereof and the voting
powers, preferences and relative, participating, optional and other special
rights of the shares of such series, and the qualifications, limitations and
restrictions thereof are as follows:

        Section 1.    Designation and Number.

               (a)    The shares of such series shall be designated as "Senior
Convertible Series C Preferred Stock" (the "Series C Stock"). The number of
shares initially constituting the Series C Stock shall be 6,727,273, which
number may be decreased (but not increased) by the Board of Directors without a
vote of stockholders; provided, however, that such number may not be decreased
below the number of then outstanding shares of Series C Stock.

               (b)    The Series C Stock shall, with respect to dividend rights
and rights upon liquidation, dissolution or winding up, rank pari passu with the
each of the Company's Series A Convertible Preferred Stock (the "Series A
Stock") and the Company's Series B Convertible Preferred Stock (the "Series B
Stock") and prior to all other classes and series of capital stock of the
Company now or hereafter authorized (except as may be authorized pursuant to
Section 3(b)) including, without limitation, the Common Stock.

<PAGE>

               (c)    Capitalized terms used herein and not otherwise defined
shall have the meanings set forth in Section 9.

        Section 2.    Dividends and Distributions.

        In the event that the Company shall declare a dividend or make any other
distribution (including, without limitation, in cash, in capital stock (which
shall include, without limitation, any options, warrants or other rights to
acquire capital stock) of the Company or other property or assets) to holders of
Common Stock, then the Board of Directors shall declare, and the holder of each
share of Series C Stock shall be entitled to receive, a dividend or distribution
in an amount equal to the amount of such dividend or distribution received by a
holder of the number of shares of Common Stock for which such share of Series C
Stock is convertible on the record date for such dividend or distribution. Any
such amount shall be paid to the holders of shares of Series C Stock at the same
time such dividend or distribution is made to holders of Common Stock.

        Section 3.    Voting Rights.

        In addition to any voting rights provided by law, the holders of shares
of Series C Stock shall have the following voting rights:

               (a)    So long as the Series C Stock is outstanding, each share
of Series C Stock shall entitle the holder thereof to vote, in person or by
proxy, at a special or annual meeting of stockholders, on each of the matters
entitled to be voted on by holders of Common Stock, voting together as a single
class with other shares entitled to vote thereon. With respect to any such vote,
each share of Series C Stock shall entitle the holder thereof to cast that
number of votes per share as is equal to the number of votes that such holder
would be entitled to cast had such holder converted its shares of Series C Stock
into Common Stock on the record date for determining the stockholders of the
Company eligible to vote on any such matters.

               (b)    Unless the consent or approval of a greater number of
shares shall then be required by law, the affirmative vote of the holders of at
least a majority of the outstanding shares of Series C Stock, voting separately
as a single class, in person or by proxy, at a special or annual meeting of
stockholders called for the purpose, shall be necessary to (i) authorize,
increase the authorized number of shares of, or issue (including on conversion
or exchange of any convertible or exchangeable securities or by
reclassification), any shares of any class or classes of Senior Stock or Parity
Stock, (ii) authorize, adopt or approve an amendment to the Certificate of
Incorporation that would increase or decrease the par value of the shares of
Series C Stock, or alter or change the powers, preferences or special rights of
the shares of Series C Stock, other Parity Stock or Senior Stock, (iii) amend,
alter or repeal the Certificate of Incorporation so as to affect the shares of
Series C Stock adversely, including, without limitation, by granting any voting
right to any holder of notes, bonds, debentures or other debt obligations of the
Company, or (iv) authorize or issue any security convertible into, exchangeable
for or evidencing the right to purchase or otherwise receive any shares of any
class or classes of Senior Stock.

        Section 4.    Certain Restrictions.

               (a)    Whenever the Company shall not have converted shares of
Series C Stock at a time required by Section 7, at such time and thereafter
until all conversion obligations provided in Section 7 that have come due shall
have been satisfied, the Company shall not: (A) declare or pay dividends, or
make any other distributions, on any shares of Junior Stock, or (B) declare or
pay dividends, or make any other distributions, on any shares of Parity Stock,
except dividends or distributions paid ratably on the

                                       -2-
<PAGE>

Series C Stock and all Parity Stock on which dividends are payable or in
arrears, in proportion to the total amounts to which the holders of all shares
of the Series C Stock and such Parity Stock are then entitled.

               (b)    Whenever the Company shall not have converted shares of
Series C Stock at a time required by Section 7, at such time and thereafter
until all conversion obligations provided in Section 7 that have come due shall
have been satisfied, the Company shall not redeem, purchase or otherwise acquire
for consideration, or require the conversion of, any shares of Junior Stock or
Parity Stock.

               (c)    The Company shall not permit any Subsidiary of the
Company, or cause any other Person, to purchase or otherwise acquire for
consideration any shares of capital stock of the Company unless the Company
could, pursuant to Section 4(b), purchase such shares at such time and in such
manner.

        Section 5.    Reacquired Shares.

        Any shares of Series C Stock converted, exchanged, redeemed, purchased
or otherwise acquired by the Company or any of its Subsidiaries or other
Affiliates in any manner whatsoever shall be retired and canceled promptly after
the acquisition thereof. All such shares of Series C Stock shall upon their
cancellation become authorized but unissued shares of Series C Stock, no par
value, of the Company and, upon the filing of an appropriate certificate with
the Secretary of State of the State of Connecticut, may be reissued as part of
another series of preferred stock, no par value per share, of the Company
subject to the conditions or restrictions on issuance set forth herein, but in
any event may not be reissued as shares of Series C Stock or other Parity Stock
unless all of the shares of Series C Stock issued on the Issue Date shall have
already been redeemed, converted or exchanged.

        Section 6.    Liquidation, Dissolution or Winding Up.

               (a)    If the Company shall commence a voluntary case under the
United States bankruptcy laws or any applicable bankruptcy, insolvency or
similar law of any other country, or consent to the entry of an order for relief
in an involuntary case under any such law or to the appointment of a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or other similar
official) of the Company or of any substantial part of its property, or make an
assignment for the benefit of its creditors, or admit in writing its inability
to pay its debts generally as they become due, or if a decree or order for
relief in respect of the Company shall be entered by a court having jurisdiction
in the premises in an involuntary case under the United States bankruptcy laws
or any applicable bankruptcy, insolvency or similar law of any other country, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator
(or other similar official) of the Company or of any substantial part of its
property, or ordering the winding up or liquidation of its affairs, and on
account of any such event the Company shall liquidate, dissolve or wind up, or
if the Company shall otherwise liquidate, dissolve or wind up, no distribution
shall be made (i) to the holders of shares of Junior Stock unless, prior
thereto, the holders of shares of Series C Stock, subject to Section 7, shall
have received the Liquidation Preference, plus all accrued and unpaid dividends,
to the date of distribution, with respect to each share, or (ii) to the holders
of shares of Parity Stock, except distributions made ratably on the Series C
Stock and all other Parity Stock in proportion to the total amounts to which the
holders of all shares of the Series C Stock and other Parity Stock are entitled
upon such liquidation, dissolution or winding up.

               (b)    Neither the consolidation or merger of the Company with or
into any other Person nor the sale or other distribution to another Person of
all or substantially all the assets, property or business of the Company shall
be deemed to be a liquidation, dissolution or winding up of the Company for
purposes of this Section 6.

                                      -3-
<PAGE>

        Section 7.    Conversion.

               (a)    Any holder of Series C Stock shall have the right, at its
option, at any time and from time to time, to convert, subject to the terms and
provisions of this Section 7, any or all of such holder's shares of Series C
Stock into such number of fully paid and non-assessable shares of Common Stock
as is equal, subject to Section 7(g), to the product of the number of shares of
Series C Stock being so converted multiplied by the quotient of (i) Liquidation
Preference divided by the (ii) Conversion Price (as defined below) then in
effect. The "Conversion Price" shall be $0.36 per share, subject to adjustment
as set forth in Section 7(d). Such conversion right shall be exercised by the
surrender of the shares of Series C Stock to be converted (the "Shares") to the
Company at any time during usual business hours at its principal place of
business to be maintained by it, accompanied by written notice that the holder
elects to convert such Shares and specifying the name or names (with address) in
which a certificate or certificates for shares of Common Stock are to be issued
and (if so required by the Company) by a written instrument or instruments of
transfer in form reasonably satisfactory to the Company duly executed by the
holder or its duly authorized legal representative and transfer tax stamps or
funds therefor, if required pursuant to Section 7(k).

All Shares surrendered for conversion shall be delivered to the Company for
cancellation and canceled by it and no Shares shall be issued in lieu thereof.

               (b)    As promptly as practicable after the surrender, as herein
provided, of any Shares for conversion pursuant to Section 7(a), the Company
shall deliver to or upon the written order of the holder of the Shares so
surrendered a certificate or certificates representing the number of fully paid
and non-assessable shares of Common Stock into which such Shares may be or have
been converted in accordance with the provisions of this Section 7. Subject to
the following provisions of this Section 7, such conversion shall be deemed to
have been made immediately prior to the close of business on the date that such
Shares shall have been surrendered in satisfactory form for conversion, and the
Person or Persons entitled to receive the Common Stock deliverable upon
conversion of such Shares shall be treated for all purposes as having become the
record holder or holders of such Common Stock at such appropriate time, and such
conversion shall be at the Conversion Price in effect at such time; provided,
however, that no surrender shall be effective to constitute the Person or
Persons entitled to receive the Common Stock deliverable upon such conversion as
the record holder or holders of such Common Stock while the share transfer books
of the Company shall be closed (but not for any period in excess of five days),
but such surrender shall be effective to constitute the Person or Persons
entitled to receive such Common Stock as the record holder or holders thereof
for all purposes immediately prior to the close of business on the next
preceding day on which such share transfer books are open, and such conversion
shall be deemed to have been made at, and shall be made at the Conversion Price
in effect at, such time on such next preceding day. If the last day for the
exercise of the conversion right shall not be a Business Day, then such
conversion right may be exercised on the next preceding Business Day.

               (c)    Upon (i) the third anniversary of the Issue Date, each
outstanding share of Series C Stock, or (ii) if earlier, the transfer of any
shares of Series C Stock by an Initial Holder to any Person other than an
Affiliate of such Initial Holder, such shares of Series C Stock, shall
automatically, with no further action required to be taken by the Company or the
holder thereof, be converted into such number of fully paid and non-assessable
shares of Common Stock as is equal to the product of the number of shares of
Series C Stock being so converted, multiplied by the quotient of (i) the
Liquidation Preference divided by (ii) the Conversion Price then in effect.
Immediately thereafter, each holder of Series C Stock subject to such
conversion, shall be deemed to be the holder of record of the Common Stock
issuable upon conversion of such holder's Series C Stock, notwithstanding that
the share register of the Company shall then be closed or that certificates
representing such Common Stock shall not then be actually delivered to such
Person. Upon notice from the Company, each holder of Series C Stock so converted

                                      -4-
<PAGE>

shall promptly surrender to the Company, at any where the Company shall maintain
a transfer agent for its Series C Stock and Common Stock, certificates
representing the shares so converted, duly endorsed in blank or accompanied by
proper instruments of transfer. On the date of such automatic conversion, all
rights with respect to the shares of Series C Stock so converted, including the
rights, if any, to receive notices and vote, will terminate, except only the
rights of holders thereof to (A) receive certificates for the number of shares
of Common Stock into which such shares of Series C Stock have been converted,
(B) be paid any declared but unpaid dividends thereon and (C) exercise the
rights to which they are entitled as holders of Common Stock.

               (d)    The Conversion Price shall be subject to adjustment as
follows:

                      (i)    In case the Company shall at any time or from time
        to time (A) pay a dividend or make any other distribution (other than a
        dividend or distribution paid or made to holders of shares of Series C
        Stock in the manner provided in Section 2) on the outstanding shares of
        any of its Common Stock in capital stock (which, for purposes of this
        Section 7(d) shall include, without limitation, any dividends or
        distributions in the form of options, warrants or other rights to
        acquire capital stock) of the Company or any Subsidiary or Affiliate
        thereof, (B) subdivide the outstanding shares of any of its Common Stock
        into a larger number of shares, (C) combine the outstanding shares of
        any of its Common Stock into a smaller number of shares, or (D) issue
        any shares of its capital stock in a reclassification of any of its
        Common Stock, then, and in each such case, the Conversion Price in
        effect immediately prior to such event shall be adjusted (and any other
        appropriate actions shall be taken by the Company) so that the holder of
        any share of Series C Stock thereafter surrendered for conversion shall
        be entitled to receive the number of shares of Common Stock or other
        securities of the Company that such holder would have owned or would
        have been entitled to receive upon or by reason of any of the events
        described above, had such share of Series C Stock been converted
        immediately prior to the occurrence of such event. An adjustment made
        pursuant to this Section 7(d)(i) shall become effective retroactively
        (A) in the case of any such dividend or distribution, to a date
        immediately following the close of business on the record date for the
        determination of holders of any of its Common Stock entitled to receive
        such dividend or distribution or (B) in the case of any such
        subdivision, combination or reclassification, to the close of business
        on the day upon which such corporate action becomes effective.

                      (ii)   In case the Company shall at any time or from time
        to time distribute to any holder of shares of its Common Stock
        (including any such distribution made in connection with a consolidation
        or merger in which the Company is the resulting or surviving corporation
        and the Common Stock is not changed or exchanged) cash, evidences of
        indebtedness of the Company or another issuer, securities of the Company
        or another issuer or other assets (excluding (A) dividends or
        distributions paid or made to holders of shares of Series C Stock in the
        manner provided in Section 2 and (B) dividends payable in shares of
        Common Stock for which adjustment is made under Section 7(d)(i)) or
        rights or warrants to subscribe for or purchase securities of the
        Company (excluding those in respect of which adjustments in the
        Conversion Price is made pursuant to Section 7(d)(i), then, and in each
        such case, the Conversion Price then in effect shall be adjusted by
        dividing the Conversion Price in effect immediately prior to the date of
        such distribution by a fraction (x) the numerator of which shall be the
        Current Market Price of the Common Stock on the record date referred to
        below and (y) the denominator of which shall be such Current Market
        Price of the Common Stock less the then fair market value (as determined
        in good faith by the Board of Directors of the Company, in the case of
        any such distribution other than a distribution of cash, based on an
        opinion of a nationally recognized investment banking firm unaffiliated
        with either the Company or the holders of the Series C Stock, chosen by
        the Company (which shall bear the expense thereof) and reasonably
        acceptable to a majority of the

                                      -5-
<PAGE>

        holders of the Series C Stock, a certified resolution with respect to
        which shall be mailed to the holders of the Series C Stock) of the
        portion of the cash, evidences of indebtedness, securities or other
        assets so distributed or of such subscription rights or warrants
        applicable to one share of Common Stock (but such denominator not to be
        less than one); provided, however, that no adjustment shall be made with
        respect to any distribution of rights to purchase securities of the
        Company if the holder of shares of Series C Stock would otherwise be
        entitled to receive such rights upon conversion at any time of shares of
        Series C Stock into Common Stock unless such rights are subsequently
        redeemed by the Company, in which case such redemption shall be treated
        for purposes of this Section 7(d)(ii) as a dividend on the Common Stock.
        Such adjustment shall be made whenever any such distribution is made and
        shall become effective retroactively to a date immediately following the
        close of business on the record date for the determination of
        stockholders entitled to receive such distribution.

                      (iii)  In case the Company at any time or from time to
        time shall take any action affecting its Common Stock which could have a
        dilutive effect on the number of shares of Common Stock that may be
        issued upon conversion of the Series C Stock, other than an action
        described in any of Section 7(d)(i), 7(d)(ii) or Section 7(h), or an
        action which would have the same dilutive effect on the Series C Stock
        as on the Common Stock, then, and in each such case, the Conversion
        Price shall be adjusted in such manner and at such time as the Board of
        Directors of the Company in good faith determines to be equitable in the
        circumstances (such determination to be evidenced in a resolution, a
        certified copy of which shall be mailed to the holders of the Series C
        Stock).

                      (iv)   In the event that any convertible or exchangeable
        securities, options, warrants or other rights, the issuance of which
        shall have given rise to an adjustment pursuant to this Section 7(d)
        ("Convertible Securities"), shall have expired or terminated without the
        exercise thereof and/or if there shall have been an increase, with the
        passage of time or otherwise, in the price payable upon the exercise or
        conversion thereof or a decrease in the number of shares of Common Stock
        issuable upon the exercise or conversion thereof, then the Conversion
        Price hereunder shall be readjusted (but to no greater extent then
        originally adjusted) on the basis of (A) eliminating from the
        computation of the Conversion Price as of the time of the issuance of
        the Convertible Securities any shares of Common Stock corresponding to
        such Convertible Securities as shall have expired or terminated, (B)
        treating the additional shares of Common Stock, if any, actually issued
        or issuable pursuant to the previous exercise of such Convertible
        Securities as having been issued for the consideration actually received
        and receivable therefor and (C) treating any of such Convertible
        Securities which remain outstanding as being subject to exercise or
        conversion on the basis of such exercise or conversion price as shall be
        in effect at such time.

               (e)    If the Company shall take a record of the holders of any
of its Common Stock for the purpose of entitling them to receive a dividend or
other distribution, and shall thereafter and before the distribution to
stockholders thereof legally abandon its plan to pay or deliver such dividend or
distribution, then thereafter no adjustment in the Conversion Price then in
effect shall be required by reason of the taking of such record.

               (f)    Upon any increase or decrease in the Conversion Price,
then, and in each such case, the Company promptly shall deliver to each
registered holder of Series C Stock at least ten Business Days prior to
effecting any of the foregoing transactions a certificate, signed by the
President or a Vice-President and by the Treasurer or an Assistant Treasurer or
the Secretary or an Assistant Secretary of the Company, setting forth in
reasonable detail the event requiring the adjustment and the method by which
such adjustment was calculated and specifying the increased or decreased
Conversion Price then in effect following such adjustment.

                                      -6-
<PAGE>

               (g)    No fractional shares or scrip representing fractional
shares shall be issued upon the conversion of any shares of Series C Stock. If
more than one share of Series C Stock shall be surrendered for conversion at one
time by the same holder, the number of full shares of Common Stock issuable upon
conversion thereof shall be computed on the basis of the aggregate number of the
shares of Series C Stock so surrendered. If the conversion of any share or
shares of Series C Stock results in a fraction, an amount equal to such fraction
multiplied by the Current Market Price of the Common Stock on the Business Day
preceding the day of conversion shall be paid to such holder in cash by the
Company.

               (h)    In case of any capital reorganization or reclassification
or other change of outstanding shares of Common Stock (other than a change in
par value, or from par value to no par value, or from no par value to par
value), or in case of any consolidation or merger of the Company with or into
another Person (other than a consolidation or merger in which the Company is the
resulting or surviving Person and which does not result in any reclassification
or change of outstanding Common Stock), or in case of any sale or other
disposition to another Person of all or substantially all of the assets of the
Company (any of the foregoing, a "Transaction"), the Company, or such successor
or purchasing Person, as the case may be, shall execute and deliver to each
holder of Series C Stock at least ten Business Days prior to effecting any of
the foregoing Transactions a certificate that the holder of each share of Series
C Stock then outstanding shall have the right thereafter to convert such share
of Series C Stock into the kind and amount of shares of stock or other
securities (of the Company or another issuer) or property or cash receivable
upon such Transaction by a holder of the number of shares of Common Stock into
which such share of Series C Stock could have been converted immediately prior
to such Transaction. Such certificate shall provide for adjustments which shall
be as nearly equivalent as may be practicable to the adjustments provided for in
this Section 7. If, in the case of any such Transaction, the stock, other
securities, cash or property receivable thereupon by a holder of Common Stock
includes shares of stock or other securities of a Person other than the
successor or purchasing Person and other than the Company, which controls or is
controlled by the successor or purchasing Person or which, in connection with
such Transaction, issues stock, securities, other property or cash to holders of
Common Stock, then such certificate also shall be executed by such Person, and
such Person shall, in such certificate, specifically acknowledge the obligations
of such successor or purchasing Person and acknowledge its obligations to issue
such stock, securities, other property or cash to the holders of Series C Stock
upon conversion of the shares of Series C Stock as provided above. The
provisions of this Section 7(h) and any equivalent thereof in any such
certificate similarly shall apply to successive Transactions.

               (i)    In case at any time or from time to time:

                      (A)    the Company shall declare a dividend (or any other
        distribution) on its Common Stock;

                      (B)    the Company shall authorize the granting to the
        holders of its Common Stock of rights or warrants to subscribe for or
        purchase any shares of stock of any class or of any other rights or
        warrants;

                      (C)    there shall be any reclassification of the Common
        Stock; or

                      (D)    there shall be an Extraordinary Event; then the
        Company shall mail to each holder of shares of Series C Stock at such
        holder's address as it appears on the transfer books of the Company, as
        promptly as possible but in any event at least ten days prior to the
        applicable date hereinafter specified, a notice stating (x) the date on
        which a record is to be taken for the purpose of such dividend,
        distribution or rights or warrants or, if a record is not to be taken,
        the date as of which the holders of Common Stock of record to be
        entitled to such dividend,

                                      -7-
<PAGE>

        distribution or rights are to be determined, or (y) the date on which
        such reclassification or Extraordinary Event is expected to become
        effective; provided that in the case of any event to which Section 7(h)
        applies, the Company shall give at least ten days' prior written notice
        as aforesaid. Such notice also shall specify the date as of which it is
        expected that holders of Common Stock of record shall be entitled to
        exchange their Common Stock for shares of stock or other securities or
        property or cash deliverable upon such reclassification or Extraordinary
        Event.

               (j)    The Company shall at all times reserve and keep available
for issuance upon the conversion of the Series C Stock, such number of its
authorized but unissued shares of Common Stock as will from time to time be
sufficient to permit the conversion of all outstanding shares of Series C Stock,
and shall take all action required to increase the authorized number of shares
of Common Stock if at any time there shall be insufficient authorized but
unissued shares of Common Stock to permit such reservation or to permit the
conversion of all outstanding shares of Series C Stock.

               (k)    The issuance or delivery of certificates for Common Stock
upon the conversion of shares of Series C Stock shall be made without charge to
the converting holder of shares of Series C Stock for such certificates or for
any tax in respect of the issuance or delivery of such certificates or the
securities represented thereby, and such certificates shall be issued or
delivered in the respective names of, or in such names as may be directed by,
the holders of the shares of Series C Stock converted; provided, however, that
the Company shall not be required to pay any tax which may be payable in respect
of any transfer involved in the issuance and delivery of any such certificate in
a name other than that of the holder of the shares of Series C Stock converted,
and the Company shall not be required to issue or deliver such certificate
unless or until the Person or Persons requesting the issuance or delivery
thereof shall have paid to the Company the amount of such tax or shall have
established to the reasonable satisfaction of the Company that such tax has been
paid.

        Section 8.    Certain Remedies.

        Any registered holder of Series C Stock shall be entitled to an
injunction or injunctions to prevent breaches of the provisions of this
Certificate of Amendment and to enforce specifically the terms and provisions of
this Certificate of Amendment in any court of the United States or any state
thereof having jurisdiction, this being in addition to any other remedy to which
such holder may be entitled at law or equity.

        Section 9.    Definitions.

        For the purposes of this Certificate of Designations, Rights and
Preferences, the following terms shall have the meanings indicated:

        "Affiliate" shall have the meaning ascribed to such term in Rule 12b?2
of the General Rules and Regulations under the Exchange Act.

        "Business Day" shall mean any day other than a Saturday, Sunday or other
day on which commercial banks in the City of New York are authorized or required
by law or executive order to close.

        "Common Stock" of the Company shall mean the Common Stock, no par value,
and any other common stock of the Company issued from time to time.

        "Conversion Price" shall have the meaning given it in Section 7 hereof.

                                      -8-
<PAGE>

        "Current Market Price" per share shall mean, on any date specified
herein for the determination thereof, (a) the average daily Market Price of the
Common Stock for those days during the period of 30 days, ending on such date,
on which the national securities exchanges were open for trading, and (b) if the
Common Stock is not then listed or admitted to trading on any national
securities exchange or quoted in the over-counter market, the Market Price on
such date.

        "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Securities and Exchange Commission
thereunder.

        "Extraordinary Event" means (i) the voluntary or involuntary
liquidation, dissolution or winding up of the Company, (ii) the voluntary sale,
conveyance, exchange or transfer to another Person of all or substantially all
of the assets of the Company and its Subsidiaries or (iii) the merger or
consolidation of the Company with one or more other Persons.

        "Fair Market Value" shall mean the amount which a willing buyer, under
no compulsion to buy, would pay a willing seller, under no compulsion to sell,
in an arm's-length transaction.

        "Initial Holder" shall mean any Person to whom shares of Series C Stock
are initially issued.

        "Issue Date" shall mean the first date on which shares of Series C Stock
are issued.

        "Junior Stock" shall mean any capital stock of the Company ranking
junior (either as to dividends or upon liquidation, dissolution or winding up)
to the Series C Stock.

        "Liquidation Preference" with respect to a share of Series C Stock shall
mean $0.36.

        "Market Price" shall mean, per share of Common Stock, on any date
specified herein: (a) the closing price per share of the Common Stock on such
date published in such date is published in The Wall Street Journal, the average
of the closing bid and asked prices on such date, as officially reported on the
principal national securities exchange on which the Common Stock is then listed
or admitted to trading; or (b) if the Common Stock is not then listed or
admitted to trading on any national securities exchange but is designated as a
national market system security by the NASD, the last trading price of the
Common Stock on such date; or (c) if there shall have been no trading on such
date or if the Common Stock is not so designated, the average of the reported
closing bid and asked prices of the Common Stock, on such date as shown by
NASDAQ and reported by any member firm of the New York Stock Exchange selected
by the Company; or (d) if none of (a), (b) or (c) is applicable, the Fair Market
Value per share determined in good faith by the Board of Directors of the
Company based on an opinion of a nationally recognized investment banking firm
unaffiliated with either the Company or the holders of the Series C Stock,
chosen by the Company (who shall bear the expense thereof) and acceptable to the
holders of at least a majority in interest of the Series C Stock.

        "NASD" shall mean the National Association of Securities Dealers, Inc.

        "NASDAQ" shall mean the National Market System of the National
Association of Securities Dealers, Inc. Automated Quotations System.

        "Parity Stock" shall mean any capital stock of the Company, including
the Series A Stock and the Series B Stock, ranking on a parity (either as to
dividends or upon liquidation, dissolution or winding up) with the Series C
Stock.

                                      -9-
<PAGE>

        "Person" shall mean any individual, firm, corporation, partnership,
trust, incorporated or unincorporated association, joint venture, joint stock
company, government (or an agency or political subdivision thereof) or other
entity of any kind, and shall include any successor (by merger or otherwise) of
such entity.

        "Senior Stock" shall mean any capital stock of the Company ranking
senior (either as to dividends or upon liquidation, dissolution or winding up)
to the Series C Stock.

        "Subsidiary" of any Person shall mean any corporation or other entity of
which a majority of the voting power of the voting equity securities or equity
interest, or rights to profits, is owned, directly or indirectly, by such
Person.

                                      -10-
<PAGE>

        IN WITNESS WHEREOF, said corporation has caused this Certificate to be
signed by Michael A. Clark, its President and Chief Operating Officer, this 10th
day of October, 2001.

                                       E-SYNC NETWORKS, INC.

                                       By:   /s/  Michael A. Clark
                                           -------------------------------------
                                           Michael A. Clark
                                           President and Chief Operating Officer

                                      -11-

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