Document:

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                                                                    Exhibit 10.6

                              SERVICEWARE.COM, INC.
                          EMPLOYEE STOCK PURCHASE PLAN
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                              SERVICEWARE.COM, INC.
                          EMPLOYEE STOCK PURCHASE PLAN

         The following constitute the provisions of the ServiceWare.com, Inc.
Employee Stock Purchase Plan:

                             I. Purpose and History

1.1      The purpose of the Plan is to provide employees of the Company and its
         Designated Subsidiaries with an opportunity to purchase Common Stock of
         the Company. It is the Company's intention that the Plan qualify as an
         "Employee Stock Purchase Plan" under Code Section 423. Accordingly, the
         provisions of the Plan should be construed to extend and limit
         participation in a manner consistent with the requirements of that Code
         section and any regulations or rulings thereunder.

1.2      The Plan was adopted by the Board on __________, 2000.

                                 II. Definitions

         The following words and phrases, when used in this Plan, unless their
context clearly indicates otherwise, shall have the following meanings:

2.1      "Administrator" means any individual(s), committee or entity appointed
         by the Board, with such authority and power as the Board may determine,
         to administer the terms of the Plan. The Administrator may, in turn,
         delegate all or a portion of its authority to one or more individuals
         to perform administrative functions under the Plan. If the Board does
         not appoint an Administrator, then references to "Administrator" in
         this Plan shall be deemed references to the Board.

2.2      "Board" means the Company's Board of Directors.

2.3      "Change in Control" means the occurrence of any of the following
         events:

         (a)      the acquisition, other than from the Company, by any
                  individual, entity or group (within the meaning of Section
                  13(d)(3) or Section 14(d)(2) of the Exchange Act), other than
                  the Company or an employee benefit plan of the Company, of
                  beneficial ownership (within the meaning of Rule 13d-3
                  promulgated under the Exchange Act) of more than 50% of the
                  combined voting power of the then outstanding voting
                  securities of the Company entitled to vote generally in the
                  election of directors (the "Voting Securities"); or

         (b)      the approval by the Company's stockholders of a
                  reorganization, merger, consolidation or recapitalization of
                  the Company (a "Business Combination"), other than a Business
                  Combination in which more than 50% of the combined voting
                  power of the outstanding voting securities of the surviving or
                  resulting

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                  entity immediately following the Business Combination is held
                  by the persons who, immediately prior to the Business
                  Combination, were the holders of the Voting Securities; or

         (c)      the approval by the Company's stockholders of a complete
                  liquidation or dissolution of the Company, or a sale of all or
                  substantially all of the Company's assets; or

         (d)      individuals who, as of the effective date of the Plan,
                  constitute the Board (the "Incumbent Board") cease for any
                  reason to constitute at least a majority of the Board;
                  provided, that any individual becoming a director subsequent
                  to such date whose election or nomination for election by the
                  Company's stockholders was approved by a vote of at least a
                  majority of the directors then comprising the Incumbent Board
                  shall be considered as though such individual were a member of
                  the Incumbent Board.

2.4      "Code" means the Internal Revenue Code of 1986, as amended.

2.5      "Common Stock" means the Company's Common Stock.

2.6      "Company" means ServiceWare.com, Inc., a [Delaware] corporation.

2.7      "Compensation" means all cash compensation paid to an Employee by the
         Company and includes commissions, bonuses, overtime, incentive
         compensation, incentive payments and any other forms of cash
         compensation as determined by the Administrator.

2.8      "Continuous Status as an Employee" means the absence of any
         interruption or termination of service as an Employee. Continuous
         Status as an Employee shall not be considered interrupted in the case
         of: (i) sick leave; (ii) military leave; (iii) any other leave of
         absence approved by the Administrator; provided, that such leave is for
         a period of not more than ninety (90) days, unless reemployment upon
         the expiration of such leave is guaranteed by contract or statute, or
         unless provided otherwise pursuant to Company policy adopted from time
         to time; or (iv) in the case of transfers between locations of the
         Company or between the Company and its Designated Subsidiaries.

2.9      "Contributions" means all amounts credited to the account of a
         participant pursuant to the Plan.

2.10     "Designated Subsidiaries" means the Subsidiaries that have been
         designated by the Board from time to time in its sole discretion as
         eligible to participate in the Plan (as set forth on Appendix A);
         provided, however, that the Board shall only have the discretion to
         designate a Subsidiary if the issuance of options to such Subsidiary's
         Employees under the Plan would not cause the Company to incur adverse
         accounting charges or cause the Plan not to qualify under Code Section
         423.

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2.11     "Employee" means any person, including an Officer, who is customarily
         employed for at least twenty (20) hours per week and more than five (5)
         months in a calendar year by the Company or one of its Designated
         Subsidiaries.

2.12     "Exchange Act" means the Securities Exchange Act of 1934, as amended.

2.13     "Fair Market Value" of stock (including Common Stock) means (i) if the
         principal securities market on which the stock is traded is a national
         securities exchange or The Nasdaq National Market ("NNM"), the closing
         price of the stock on such exchange or NNM, as the case may be, or if
         no sale of the stock shall have occurred on such date, on the next
         preceding date on which there was a reported sale; (ii) if the stock is
         not traded on a national securities exchange or NNM, the closing price
         on such date as reported by The Nasdaq SmallCap Market, or if no sale
         of the stock shall have occurred on such date, on the next preceding
         date on which there was a reported sale; (iii) if the principal
         securities market on which the stock is traded is not a national
         securities exchange, NNM or The Nasdaq SmallCap Market, the average of
         the bid and asked prices reported by the National Quotation Bureau,
         Inc.; or (iv) if the price of the stock is not so reported, the fair
         market value of the stock as determined in good faith by the Board.

2.14     "Offering Date" means the first business day of each Offering Period of
         the Plan.

2.15     "Offering Period" means each six (6) month period commencing on June 1
         or December 1 during a calendar year. An Offering Period commencing on
         June 1 shall end on the next November 30 and an Offering Period
         commencing on December 1 shall end on the next May 31. Notwithstanding
         the foregoing, the first Offering Period under the Plan shall commence
         on the effective date of the Registration Statement on Form S-1 for the
         initial public offering of the Company's Common Stock (the "IPO Date")
         and continue until November 30, 2000.

2.16     "Officer" means a person who is an officer of the Company within the
         meaning of Section 16 of the Exchange Act and the rules and regulations
         promulgated thereunder.

2.17     "Plan" means the ServiceWare.com, Inc. Employee Stock Purchase Plan.

2.18     "Purchase Date" means the last day of each Offering Period under the
         Plan.

2.19     "Purchase Price" means, with respect to an Offering Period, an amount
         equal to eighty- five percent (85%) of the Fair Market Value of a Share
         on the Offering Date or on the Purchase Date for such Offering Period,
         whichever is lower; provided, however, that in the event (i) there is
         any increase in the number of Shares available for issuance under the
         Plan (including without limitation an automatic increase pursuant to
         Section 11.1 below or as a result of a stockholder-approved amendment
         to the Plan), (ii) all or a portion of such additional Shares are to be
         issued with respect to an Offering Period that is underway at the time
         of such increase ("Additional Shares"), and (iii) the Fair Market Value
         of a Share on the date of such increase (the "Approval Date Fair Market
         Value") is higher than the Fair Market Value on the Offering Date for
         such Offering

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         Period, then in such instance the Purchase Price with respect to
         Additional Shares shall be eighty-five percent (85%) of the Approval
         Date Fair Market Value or the Fair Market Value of a Share on the
         Purchase Date, whichever is lower.

2.20     "Share" means a share of Common Stock, as adjusted in accordance with
         Article 17 of the Plan.

2.21     "Subsidiary" means a corporation, domestic or foreign, of which not
         less than fifty percent (50%) of the voting shares are held by the
         Company or a Subsidiary, whether or not such corporation now exists or
         is hereafter organized or acquired by the Company or a Subsidiary.

                                III. Eligibility

3.1      Eligible Employees. Any person who is an Employee as of the Offering
         Date of a given Offering Period shall be eligible to participate in
         such Offering Period under the Plan, subject to the requirements of
         Section 4.1 and the limitations imposed by Code Section 423(b).

3.2      Excluded Employees. Notwithstanding any Plan provisions to the
         contrary, no Employee shall be granted an option under the Plan if: (i)
         immediately after the grant, such Employee (or any other person whose
         stock would be attributed to such Employee pursuant to Code Section
         424(d)) would own capital stock of the Company and/or hold outstanding
         options to purchase stock possessing five percent (5%) or more of the
         total combined voting power or value of all classes of stock of the
         Company or of any subsidiary corporation (as defined in Code Section
         424(f)); or (ii) such option would permit his or her rights to purchase
         stock under all employee stock purchase plans (described in Code
         Section 423) of the Company and its Subsidiaries to accrue at a rate
         which exceeds twenty-five thousand dollars ($25,000) of the Fair Market
         Value of such stock (determined at the time such option is granted) for
         each calendar year in which such option is outstanding at any time.

                                IV. Participation

4.1      Employee Participation. An eligible Employee may become a participant
         in the Plan by completing a subscription agreement on the form provided
         by the Company and filing it with the Administrator prior to the
         applicable Offering Period, unless a later time for filing the
         subscription agreement is set by the Administrator for all eligible
         Employees with respect to a given Offering Period. The subscription
         agreement shall set forth the percentage of a participant's
         Compensation (subject to Section 5.1 below) to be paid as Contributions
         under the Plan.

4.2      Payroll Deductions. Payroll deductions shall commence as of the first
         payroll following the Offering Date for an Offering Period (or as soon
         as administratively practicable thereafter) and shall end on the last
         payroll paid on or prior to the Purchase

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         Date for an Offering Period to which the subscription agreement is
         applicable, unless sooner terminated by the participant as provided in
         Article 9.

                      V. Method of Payment of Contributions

5.1      Amount of Payroll Deductions. A participant shall elect to have payroll
         deductions made during an Offering Period in an amount not less than
         one percent (1%) and not more than fifteen percent (15%) of such
         participant's Compensation during an Offering Period (with such
         deductions to be made ratably on each applicable pay date during the
         Offering Period, except as otherwise permitted by the Administrator in
         its discretion). All payroll deductions made by a participant shall be
         credited to his or her account under the Plan. A participant may not
         make any additional payments into such account.

5.2      Change and Discontinuation of Payroll Deduction Election. A participant
         may discontinue his or her participation in the Plan as provided in
         Article 9, or on one occasion only during an Offering Period may
         increase and on one occasion only during such Offering Period may
         decrease the rate of his or her Contributions with respect to the
         Offering Period by completing and filing a new subscription agreement
         with the Administrator. Any such change in the payroll deduction rate
         shall be effective as soon as administratively practicable after the
         Administrator receives the new subscription agreement from the
         participant.

5.3      Limit on Payroll Deductions. Notwithstanding the foregoing, to the
         extent necessary to comply with Code Section 423(b)(8) and Section 3.2
         herein, a participant's payroll deductions may be decreased during any
         Offering Period scheduled to end during the current calendar year to
         zero percent (0%) at such time that the aggregate of all payroll
         deductions accumulated with respect to such Offering Period and any
         other Offering Period ending within the same calendar year equal
         $21,250. Payroll deductions shall resume at the elected rate set forth
         in such participant's subscription agreement at the beginning of the
         first Offering Period that is scheduled to end in the following
         calendar year, unless terminated by the participant as provided in
         Article 9.

                               VI. Grant of Option

6.1      Grant of Option. On each Offering Date, each eligible Employee
         participating in such Offering Period shall be granted an option to
         purchase the number of Shares determined by dividing such Employee's
         Contributions accumulated prior to the Purchase Date for such Offering
         Period and retained in the participant's account as of such Purchase
         Date by the applicable Purchase Price. There is no limit on the number
         of Shares that a participant may purchase under the Plan; provided,
         however, that the Board may impose a limit on the number of Shares a
         participant may purchase under the Plan at any time; provided, further,
         that such purchase shall be subject to the limitations set forth in
         Section 3.2 and Article 11.

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                             VII. Exercise of Option

7.1      Exercise of Option. Unless a participant withdraws from the Plan as
         provided in Article 9, his or her option for the purchase of Shares
         will be exercised automatically on the Purchase Date for an Offering
         Period, and the maximum number of full Shares subject to the option
         will be purchased at the applicable Purchase Price with the accumulated
         Contributions in his or her account. No fractional Shares shall be
         issued under the Plan. The Shares purchased upon exercise of an option
         hereunder shall be deemed to be transferred to the participant on the
         Purchase Date. During his or her lifetime, a participant's option to
         purchase Shares hereunder is exercisable only by him or her.

                                 VIII. Delivery

8.1      Delivery of Shares. As soon as administratively practicable after the
         Purchase Date for an Offering Period, the Administrator shall arrange
         the delivery to each participant, as appropriate, of a certificate
         representing the Shares purchased upon exercise of his or her option.
         As an alternative, the Administrator may make arrangements with a
         brokerage firm to establish a brokerage account for each participant,
         to which Shares purchased for the participant upon exercise of his or
         her option shall be credited and held for the participant. Any payroll
         deductions accumulated in a participant's account which are not
         sufficient to purchase a full Share shall be retained in the
         participant's account for the subsequent Offering Period, subject to
         earlier withdrawal by the participant as provided in Article 9 below.
         Any other amounts left over in a participant's account after a Purchase
         Date shall be returned to the participant.

                  IX. Withdrawal and Termination of Employment

9.1      Voluntary Withdrawal of Participation. A participant may withdraw all
         Contributions credited to his or her account under the Plan at any time
         prior to a Purchase Date by giving written notice to the Administrator
         (partial withdrawals are not permitted). All of the participant's
         Contributions credited to his or her account will be paid to him or her
         as soon as administratively practicable after receipt of his or her
         withdrawal notice and his or her option for the current period will be
         automatically terminated. In addition, no further Contributions for the
         purchase of Shares will be made during the Offering Period on the
         participant's behalf.

9.2      Withdrawal Upon Termination of Employment. Upon termination of the
         participant's Continuous Status as an Employee prior to the Purchase
         Date of an Offering Period for any reason, including retirement or
         death, the Contributions credited to his or her account will be
         returned to him or her or, in the case of his or her death, to the
         person or persons entitled thereto under Article 13, and his or her
         option will terminate automatically.

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9.3      Involuntary Withdrawal of Participation. In the event an Employee fails
         to remain in Continuous Status as an Employee of the Company
         customarily employed for at least twenty (20) hours per week and more
         than five (5) months in a calendar year during an Offering Period in
         which the Employee is a participant, he or she will be deemed to have
         elected to withdraw from the Plan and the Contributions credited to his
         or her account will be returned to him or her and his or her option
         will be terminated.

9.4      Effect of Withdrawal. A participant's withdrawal from an Offering
         Period will not have any effect upon his or her eligibility to
         participate in a succeeding Offering Period or in any similar plan
         which may hereafter be adopted by the Company.

                                   X. Interest

10.1     Interest Accrual. No interest shall accrue on the Contributions of a
         Plan participant.

                                   XI. Shares

11.1     Shares Available Under the Plan. Subject to adjustment as provided in
         Article 17, the maximum number of Shares that initially shall be made
         available for sale under the Plan shall be 500,000 Shares. In addition,
         on the first day of each of the Company's fiscal years, the aggregate
         number of Shares reserved for issuance under the Plan shall be
         increased automatically by the number of Shares purchased under the
         Plan in the preceding fiscal year; provided, that the aggregate number
         of Shares reserved under the Plan shall not exceed 1,000,000 Shares. If
         the Board determines that, on a given Purchase Date, the number of
         Shares with respect to which options are to be exercised may exceed the
         number of Shares available for sale under the Plan on such Purchase
         Date, the Board may in its sole discretion provide: (x) that the
         Company shall make a pro rata allocation of the Shares available for
         purchase on the Purchase Date, in as uniform a manner as shall be
         practicable and as it shall determine in its sole discretion to be
         equitable among all participants exercising options to purchase Shares
         on such Purchase Date, and continue subsequent Offering Periods; or (y)
         that the Company shall make a pro rata allocation of the Shares
         available for purchase on the Purchase Date in as uniform a manner as
         shall be practicable and as it shall determine in its sole discretion
         to be equitable among all participants exercising options to purchase
         Shares on such Purchase Date, and thereafter terminate the Plan
         pursuant to Article 18 below.

11.2     Voting of Shares. The participant shall have no interest or voting
         right in Shares covered by his or her option until such option has been
         exercised.

11.3     Registration of Shares. Shares to be delivered to a participant under
         the Plan will be registered in the name of the participant or in the
         name of the participant and his or her spouse (or, where applicable, in
         the name of a broker or other nominee or custodian for the benefit of
         the participant or the participant and his or her spouse).

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                               XII. Administration

12.1     Plan Administration. The Board shall supervise and administer the Plan
         and shall have full power to adopt, amend and rescind any rules deemed
         desirable and appropriate for the administration of the Plan and not
         inconsistent with the Plan, to construe and interpret the Plan, and to
         make all other determinations necessary or advisable for the
         administration of the Plan. In its sole discretion, the Board may
         appoint an Administrator and delegate all or a portion of its authority
         to such Administrator to administer the Plan.

                        XIII. Designation of Beneficiary

13.1     Beneficiary Designation. A participant may file a written beneficiary
         designation with the Administrator designating the beneficiary who is
         to receive any Shares and cash, if any, from the participant's account
         under the Plan in the event of such participant's death subsequent to
         the end of an Offering Period but prior to delivery to him or her of
         such Shares and cash. In addition, a participant may file a beneficiary
         designation with the Administrator designating the beneficiary who is
         to receive any cash from the participant's account under the Plan in
         the event of such participant's death prior to the Purchase Date of an
         Offering Period.

13.2     Change of Beneficiary Designation. A beneficiary designation filed
         under Section 13.1 may be changed by the participant at any time by
         written notice to the Administrator. In the event of the death of a
         participant and in the absence of a valid designated beneficiary who is
         living at the time of such participant's death, the Administrator shall
         deliver such Shares and/or cash to the executor or administrator of the
         estate of the participant, or if no such executor or administrator has
         been appointed (to the knowledge of the Administrator), the
         Administrator, in its discretion, may deliver such Shares and/or cash
         to the spouse or to any one or more dependents or relatives of the
         participant, or if no spouse, dependent or relative is known to the
         Administrator, then to such other person as the Administrator may
         designate.

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                              XIV. Transferability

14.1     Transfer of Plan Benefits. Neither Contributions credited to a
         participant's account nor any rights with regard to the exercise of an
         option or to receive Shares under the Plan may be assigned,
         transferred, pledged or otherwise disposed of in any way (other than by
         will, the laws of descent and distribution, or as provided in Article
         13) by the participant. Any such attempt at assignment, transfer,
         pledge or other disposition shall be without effect, except that the
         Company may treat such act as a voluntary election to withdraw funds in
         accordance with Article 9.

                            XV. Use of Contributions

15.1     Use of Contributions. All Contributions received or held by the Company
         under the Plan may be used by the Company for any corporate purpose,
         and the Company shall not be obligated to segregate such Contributions
         from other Company assets.

                           XVI. Reporting of Accounts

16.1     Reporting of Accounts. Individual accounts will be maintained for each
         participant in the Plan. Statements of account will be given to
         participating Employees at least annually, which statements will set
         forth the amounts of Contributions, the per Share Purchase Price, the
         number of Shares purchased and the remaining cash balance, if any.

                XVII. Adjustments Upon Changes in Capitalization;
                                Change in Control

17.1     Adjustment. Subject to any required action by the Company's
         stockholders, the number of Shares covered by each option under the
         Plan that has not yet been exercised and the number of Shares which
         have been authorized for issuance under the Plan but have not yet been
         placed under option (collectively, the "Reserves"), as well as the
         maximum number of Shares which may be purchased by a participant in an
         Offering Period, the number of Shares set forth in Section 11.1 above,
         and the price per Share covered by each option under the Plan that has
         not yet been exercised, shall be appropriately adjusted to reflect any
         stock dividend, stock split, combination or exchange of shares or other
         change in capitalization with a similar substantive effect upon the
         Plan or the awards granted under the Plan. The Board shall have the
         power and sole discretion to determine the nature and amount of the
         adjustment to be made in each case. The adjustment so made shall be
         final and binding on all participants.

17.2     Change in Control. Upon a Change of Control, each outstanding option
         shall be assumed by the "Acquiring Corporation" (as defined below) or
         parent thereof or replaced with a comparable option or right to
         purchase shares of the capital stock, or equity equivalent instrument,
         of the Acquiring Corporation or parent thereof, or other

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         comparable rights (such assumed and comparable options and rights,
         together, the "Replacement Options"); provided, however, that if the
         Acquiring Corporation or parent thereof does not agree to grant
         Replacement Options, then all outstanding Options which have been
         granted under the Plan and which are not exercisable as of the
         effective date of the Change of Control shall automatically accelerate
         and become exercisable immediately prior to the effective date of the
         Change of Control as described below. The term "Acquiring Corporation"
         means the surviving, continuing, successor or purchasing corporation,
         as the case may be. In the event that the successor corporation refuses
         to grant Replacement Options, the Offering Period then in progress
         shall be shortened and a new Purchase Date shall be set (the "New
         Purchase Date"), as of which date the Offering Period then in progress
         will terminate. The New Purchase Date shall be on or before the date of
         consummation of the Change in Control and the Board shall notify each
         participant in writing, at least ten (10) days prior to the New
         Purchase Date, that the Purchase Date for his or her option has been
         changed to the New Purchase Date and that his or her option will be
         exercised automatically on the New Purchase Date, unless prior to such
         date he or she has withdrawn from the Offering Period as provided in
         Article 9. For purposes of this Article 17, an option granted under the
         Plan shall be deemed to be assumed, without limitation, if, at the time
         of issuance of the stock or other consideration upon a Change in
         Control, each holder of an option under the Plan would be entitled to
         receive upon exercise of the option the same number and kind of shares
         of stock or the same amount of property, cash or securities as such
         holder would have been entitled to receive upon the occurrence of the
         Change in Control if the holder had been, immediately prior to the
         transaction, the holder of the number of Shares covered by the option
         at such time (after giving effect to any adjustments in the number of
         Shares covered by the option as provided for in this Article 17);
         provided, however, that if the consideration received in the
         transaction is not solely common stock of the Acquiring Corporation,
         the Board may, with the consent of the Acquiring Corporation, provide
         for the consideration to be received upon exercise of the option to be
         solely common stock of the Acquiring Corporation or its parent equal in
         Fair Market Value to the per Share consideration received by holders of
         Common Stock in the transaction. Notwithstanding any other provision of
         this Section, the Board may determine, in its discretion, to terminate
         any Offering Period in progress immediately prior to the effective date
         of a Change of Control and to return all unused Contributions to
         Participants.

17.3     Liquidation and Dissolution. In the event of a dissolution or
         liquidation of the Company, the Offering Period then in progress will
         terminate immediately prior to the consummation of such action, unless
         otherwise provided by the Board.

             XVIII. Amendment or Termination; Administrative Changes

18.1     Authority to Amend or Terminate Plan. The Board may at any time and for
         any reason terminate or amend the Plan; provided, that no amendment to
         the Plan shall be deemed effective if and to the extent it would cause
         the Plan to no longer meet the applicable requirements of Code Section
         423; provided further, that to the extent necessary to comply with Rule
         16b-3 under the Exchange Act, or with Code Section 423 (or any

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         successor rule or provision or any applicable law or regulation), the
         Company shall obtain stockholder approval in such a manner and to such
         a degree as so required. In the event that the Plan is to be terminated
         while an Offering Period is in progress, the Board may determine that
         such Offering Period shall be shortened and a New Purchase Date set, as
         of which date the Offering Period then in progress will terminate. In
         such event, the Board shall notify each participant in writing, at
         least ten (10) days prior to the New Purchase Date, that the Purchase
         Date for his or her option has been changed to the New Purchase Date
         and that his or her option will be exercised automatically on the New
         Purchase Date, unless prior to such date he or she has withdrawn from
         the Offering Period as provided in Article 9. Alternatively, the Board
         may determine, in its discretion, to terminate the Offering Period in
         progress at the time of the Plan's termination and to return all unused
         Contributions to Participants.

18.2     Changes in Plan Administration. Without the need for Plan amendment,
         the Administrator shall be entitled in its discretion to limit the
         frequency and/or number of changes in the amount withheld during an
         Offering Period, establish the exchange ratio applicable to amounts
         withheld in a currency other than U.S. dollars, permit payroll
         withholding in excess of the amount designated by a participant in
         order to adjust for delays or mistakes in the Company's processing of
         properly completed withholding elections, establish reasonable waiting
         and adjustment periods and/or accounting and crediting procedures to
         ensure that amounts applied toward the purchase of Common Stock for
         each participant properly correspond with amounts withheld from the
         participant's Compensation, and establish such other limitations or
         procedures as the Administrator, in its sole discretion, determines to
         be advisable.

                                  XIX. Notices

19.1     Notices. All notices or other communications by a participant to the
         Company under or in connection with the Plan shall be deemed to have
         been duly given when received in the form specified by the Company at
         the location, or by the person, designated by the Company for the
         receipt thereof.

                       XX. Conditions Upon Share Issuance

20.1     Conditions Upon Share Issuance. Shares shall not be issued with respect
         to an option unless the exercise of such option and the issuance and
         delivery of such Shares pursuant thereto shall comply with all
         applicable provisions of law, domestic or foreign, including, without
         limitation, the Securities Act of 1933, as amended, the Exchange Act,
         the rules and regulations promulgated thereunder, applicable state
         securities laws and the requirements of any stock exchange upon which
         the Shares may then be listed, and shall be further subject to the
         approval of counsel for the Company with respect to such compliance. As
         a condition to the exercise of an option, the Company may require the
         person exercising such option to represent and warrant at the time of
         any such exercise that the Shares are being purchased only for
         investment and without any present intention to sell or distribute such
         Shares if, in the opinion of counsel for the

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         Company, such a representation is required by any of the aforementioned
         applicable provisions of law.

                               XXI. Miscellaneous

21.1     Term of Plan and Effective Date. The Plan shall become effective upon
         the IPO Date. It shall continue in effect for a term of twenty (20)
         years unless sooner terminated under Article 18.

21.2     Additional Restrictions. The terms and conditions of options granted
         hereunder to, and the purchase of Shares by, persons subject to Section
         16 of the Exchange Act shall comply with the applicable provisions of
         Rule 16b-3. This Plan shall be deemed to contain, and such options
         shall contain, and the Shares issued upon exercise thereof shall be
         subject to, such additional conditions and restrictions as may be
         required by Rule 16b-3 to qualify for the maximum exemption from
         Section 16 of the Exchange Act with respect to Plan transactions.

21.3     Withholding. The Company shall have the right to deduct from all
         amounts paid to a participant in cash as salary, bonus or other
         compensation any taxes required by law to be withheld in respect of
         awards granted under the Plan. In the Administrator's discretion, a
         participant may be permitted to elect to have withheld from the Shares
         otherwise issuable to the participant, or to tender to the Company, the
         number of Shares whose Fair Market Value equals the minimum amount
         required to be withheld.

21.4     Construction of the Plan. The validity, construction, interpretation,
         administration and effect of the Plan and of its rules and regulations,
         and rights relating to the Plan, shall be determined solely by the
         Board. Any determination by the Board shall be final and binding on all
         participants. The Plan shall be governed in accordance with the laws of
         the State of [Delaware] without regard to the conflict of law
         provisions of such laws.

21.5     No Right to Option; No Right to Employment. No person shall have any
         claim of right to be granted an option under the Plan. Neither the Plan
         nor any action taken hereunder shall be construed as giving any
         employee any right to be retained in the Company's employ or any of its
         subsidiaries or as giving any consultant, advisor or director any right
         to continue to serve in such capacity.

21.6     Awards Not Includable for Benefit Purposes. Income recognized by a
         participant pursuant to the provisions of the Plan shall not be
         included in the determination of benefits under any "employee benefit
         plan" (as such term is defined in Section 3(3) of the Employee
         Retirement Income Security Act of 1974) or such other benefit plan,
         policy or arrangement applicable to the participant that are maintained
         by the Company or any of its subsidiaries, except as may be provided
         under the terms of such plans or determined by resolution of the Board.

21.7     No Strict Construction. No rule of strict construction shall be implied
         against the Company, the Board, or any other person in the
         interpretation of any of the terms of

                                       13
<PAGE>   14
         the Plan, any award granted under the Plan or any rule or procedure
         established by the Board.

21.8     Captions. All Section headings used in the Plan are for convenience
         only, do not constitute a part of the Plan, and shall not be deemed to
         limit, characterize or affect in any way any provisions of the Plan,
         and all provisions of the Plan shall be construed as if no captions
         have been used in the Plan.

21.9     Severability. Whenever possible, each provision in the Plan and every
         option at any time granted under the Plan shall be interpreted in such
         manner as to be effective and valid under applicable law, but if any
         provision of the Plan or any option at any time granted under the Plan
         shall be held to be prohibited by or invalid under applicable law, then
         such provision shall be deemed amended to accomplish the objectives of
         the provision as originally written to the fullest extent permitted by
         law, and all other provisions of the Plan and every other option at any
         time granted under the Plan shall remain in full force and effect.

21.10    Legends. All certificates for Shares delivered under the Plan shall be
         subject to such transfer and other restrictions as the Board may deem
         advisable under the rules, regulations and other requirements of the
         Securities and Exchange Commission, any stock exchange or quotation
         system upon which the Common Stock is then listed or quoted and any
         applicable federal or state securities law, and the Board may cause a
         legend or legends to be put on any such certificates to make
         appropriate references to such restrictions.

                                       14
<PAGE>   15
                                   APPENDIX A

              DESIGNATED SUBSIDIARIES PARTICIPATING UNDER THE PLAN

                                [NONE DESIGNATED]

                                       15
<PAGE>   16
                              SERVICEWARE.COM, INC.
                          EMPLOYEE STOCK PURCHASE PLAN

                             SUBSCRIPTION AGREEMENT

New Election ______
Change of Election ______

         1. I, ________________________, hereby elect to participate in the
ServiceWare.com, Inc. Employee Stock Purchase Plan (the "Plan") for the Offering
Period from __________________, ____ to _______________, ____, and subscribe to
purchase shares of the Company's Common Stock in accordance with this
Subscription Agreement and the Plan.

         2. I elect to have Contributions in the amount of ____% of my
Compensation, as those terms are defined in the Plan, applied to this purchase.
I understand that this amount must not be less than 1% and not more than 15% of
my Compensation during the Offering Period. (Please note that no fractional
percentages are permitted).

         3. I hereby authorize payroll deductions during the Offering Period at
a rate consistent with the election stated in Item 2 of this Subscription
Agreement. I understand that all payroll deductions made by me shall be credited
to my account under the Plan and that I may not make any additional payments
into such account. I understand that all payments made by me shall be
accumulated for the purchase of Shares at the applicable purchase price
determined in accordance with the Plan. I further understand that, except as
otherwise set forth in the Plan, Shares will be purchased for me automatically
on the Purchase Date of the Offering Period unless I otherwise withdraw from the
Plan by giving written notice to the Company for such purpose.

         4. I understand that I may discontinue my participation in accordance
with the Plan's terms at any time prior to a Purchase Date. I also understand
that I can increase or decrease the rate of my Contributions on one occasion
only with respect to any increase and one occasion only with respect to any
decrease during any Offering Period by completing and filing a new Subscription
Agreement, such Subscription Agreement to take effect as soon as
administratively practicable after the date it is filed with the Administrator.
Further, I may change the rate of deductions for future Offering Periods by
filing a new Subscription Agreement, and any such change will be effective as of
the beginning of the next Offering Period. In addition, I acknowledge that,
unless I discontinue my participation in the Plan, my election will continue to
be effective for each successive Offering Period.

         5. I have received a copy of the complete "ServiceWare.com, Inc.
Employee Stock Purchase Plan" and a prospectus describing the Plan's terms. I
understand that my participation in the Plan is in all respects subject to the
terms of the Plan.
<PAGE>   17
         6. Shares purchased for me under the Plan should be issued in the
name(s) of (name of employee or employee and spouse only):

                    _______________________________________

                    _______________________________________

         7. In the event of my death, I hereby designate the following as my
beneficiary(ies) to receive all payments and shares due to me under the Plan:

NAME:             (Please print) _______________________________________________
                                 (First)            (Middle)              (Last)

                  (Relationship) _______________________________________________

                  (Address)      _______________________________________________

                                 _______________________________________________

                                 _______________________________________________

         8. I understand that if I dispose of any shares acquired by me pursuant
to the Plan within 2 years after the Offering Date of an Offering Period during
which such shares were purchased on my behalf or within 1 year after the
Purchase Date for such Offering Period, I will be treated for federal income tax
purposes as having received ordinary compensation income at the time of such
disposition in an amount equal to the excess of the fair market value of the
shares on the Purchase Date over the price which I paid for the shares,
regardless of whether I disposed of the shares at a price less than their fair
market value at the Purchase Date. The remainder of the gain or loss, if any,
recognized on such disposition will be treated as capital gain or loss.

         I HEREBY AGREE TO NOTIFY THE COMPANY IN WRITING WITHIN 30 DAYS AFTER
THE DATE OF ANY SUCH DISPOSITION, AND I WILL MAKE ADEQUATE PROVISION FOR
FEDERAL, STATE OR OTHER TAX WITHHOLDING OBLIGATIONS, IF ANY, WHICH ARISE UPON
THE DISPOSITION OF THE COMMON STOCK. The Company may, but will not be obligated
to, withhold from my compensation the amount necessary to meet any applicable
withholding obligation including any withholding necessary to make available to
the Company any tax deductions or benefits attributable to the sale or early
disposition of Common Stock by me.

         9. If I dispose of such shares at any time after expiration of the
2-year and 1-year holding periods, I understand that I will be treated for
federal income tax purposes as having received compensation income only to the
extent of an amount equal to the lesser of (1) the excess of the fair market
value of the shares at the time of such disposition over the purchase
price which I paid for the shares under the option, or (2) 15% of the fair
market value of the

                                        2
<PAGE>   18
shares on the Offering Date or the Purchase Date for a particular Offering
Period, whichever is lower. The remainder of the gain or loss, if any,
recognized on such disposition will be treated as capital gain or loss.

         I UNDERSTAND THAT THIS TAX SUMMARY IS ONLY A SUMMARY AND IS SUBJECT TO
CHANGE. I further understand that I should consult a tax advisor concerning the
tax implications of the purchase and sale of stock under the Plan.

         10. I hereby agree to be bound by the terms of the Plan. The
effectiveness of this Subscription Agreement is dependent upon my eligibility to
participate in the Plan.

SIGNATURE:

__________________________________

SOCIAL SECURITY #

__________________________________

DATE:

__________________________________

                                        3
<PAGE>   19
                              SERVICEWARE.COM, INC.
                          EMPLOYEE STOCK PURCHASE PLAN

                              NOTICE OF WITHDRAWAL

         I, __________________________, hereby elect to withdraw my
participation in the ServiceWare.com, Inc. Employee Stock Purchase Plan (the
"Plan") for the Offering Period that began on ____________, _____. This
withdrawal covers all Contributions currently credited to my account and is
effective on the date designated below.

         I understand that all Contributions credited to my account will be paid
to me as soon as administratively practicable following receipt by the
Administrator of this Notice of Withdrawal and that my option for the current
period will automatically terminate, and that no further Contributions for the
purchase of shares can be made by me during the Offering Period.

         The undersigned further understands and agrees that he or she shall be
eligible to participate in succeeding offering periods only by delivering to the
Company a new Subscription Agreement.

Dated: ______________________               ____________________________________
                                            Signature of Employee

                                            ____________________________________
                                            Social Security Number<PAGE>   1

                                                                     EXHIBIT 4.1

                    CERTIFICATE OF DESIGNATIONS, PREFERENCES

                                  AND RIGHTS OF

                   SENIOR CONVERTIBLE SERIES B 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 B 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 B Preferred Stock" (the "Series B Stock"). The number of shares initially
constituting the Series B Stock shall be 2,272,727, 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 B Stock.

                                       1

<PAGE>   2

     (b) The Series B Stock shall, with respect to dividend rights and rights
upon liquidation, dissolution or winding up, rank pari passu with the Company's
Series A Convertible Preferred Stock (the "Series A 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.

     (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 B 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 B
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 B 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 B Stock shall have the following voting rights:

     (a) So long as the Series B Stock is outstanding, each share of Series B
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 B 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 B 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 B Stock, voting

                                       2

<PAGE>   3

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 B Stock, or alter or change the powers, preferences or special rights of
the shares of Series B Stock, other Parity Stock or Senior Stock, (iii) amend,
alter or repeal the Certificate of Incorporation so as to affect the shares of
Series B Stock adversely, including, without limitation, by granting any voting
right to any holder of notes, bonds, debentures or other debt obligations of the
Company, (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 or Parity Stock, or (v) effect an Extraordinary
Event.

     Section 4. Certain Restrictions.

     (a) Whenever the Company shall not have converted shares of Series B 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 Series B 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 B Stock and such
Parity Stock are then entitled.

     (b) Whenever the Company shall not have converted shares of Series B 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 B Stock converted, exchanged, redeemed, purchased or
otherwise acquired by

                                       3

<PAGE>   4

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 B Stock shall upon their cancellation become
authorized but unissued shares of Series B 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 B Stock or other Parity Stock unless all of
the shares of Series B 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 B 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 B Stock and all
other Parity Stock in proportion to the total amounts to which the holders of
all shares of the Series B 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

                                       4

<PAGE>   5

Company shall be deemed to be a liquidation, dissolution or winding up of the
Company for purposes of this Section 6.

     Section 7. Conversion.

     (a) Any holder of Series B 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 B 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 B
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 $4.40 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 B 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

                                       5

<PAGE>   6

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 B Stock, or (ii) if earlier, the transfer of any shares of
Series B Stock by an Initial Holder to any Person other than an Affiliate of
such Initial Holder, such shares of Series B 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 B 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 B 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 B 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 B Stock so converted shall promptly surrender to the
Company, at any where the Company shall maintain a transfer agent for its Series
B 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 B 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 B 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

                                       6

<PAGE>   7

     or make any other distribution (other than a dividend or distribution paid
     or made to holders of shares of Series B 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 B 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 B 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 B 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

                                       7

<PAGE>   8

     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 B Stock, chosen by the
     Company (which shall bear the expense thereof) and reasonably acceptable to
     a majority of the holders of the Series B Stock, a certified resolution
     with respect to which shall be mailed to the holders of the Series B 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 B Stock would otherwise be entitled to receive
     such rights upon conversion at any time of shares of Series B 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 B 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 B 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 B 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

                                       8

<PAGE>   9

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 B 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.

     (g) No fractional shares or scrip representing fractional shares shall be
issued upon the conversion of any shares of Series B Stock. If more than one
share of Series B 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 B Stock so surrendered. If the conversion of any share or shares of
Series B 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

                                       9

<PAGE>   10

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 B
Stock at least ten Business Days prior to effecting any of the foregoing
Transactions a certificate that the holder of each share of Series B Stock then
outstanding shall have the right thereafter to convert such share of Series B
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 B 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 B Stock upon
conversion of the shares of Series B 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;

                                       10

<PAGE>   11

               (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 B 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, 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 B 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 B 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 B Stock.

     (k) The issuance or delivery of certificates for Common Stock upon the
conversion of shares of Series B Stock shall be made without charge to the
converting holder of shares of Series B 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 B 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 B 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

                                       11

<PAGE>   12

been paid.

     Section 8. Certain Remedies.

     Any registered holder of Series B 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.

     "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,

                                       12

<PAGE>   13

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 B Stock are
initially issued.

     "Issue Date" shall mean the first date on which shares of Series B 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 B Stock.

     "Liquidation Preference" with respect to a share of Series B Stock shall
mean $4.40.

     "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 B 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 B 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 B Stock and the Series A Stock, ranking on a parity (either as to
dividends or upon liquidation, dissolution or winding up) with the Series B
Stock.

     "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

                                       13

<PAGE>   14

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 B 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.

                                       14

<PAGE>   15

     IN WITNESS WHEREOF, said corporation has caused this Certificate to be
signed by John C. Maxwell, III, its Chairman and CEO, this 1st day of November,
1999.

                                            E-SYNC NETWORKS, INC.

                                            By: /s/ John C. Maxwell, III
                                               __________________________
                                               Chairman and CEO

                                      -15-

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