Document:

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                                                                     Exhibit 4.1

                                INFONAUTICS, INC.
                              AMENDED AND RESTATED
                          1996 EQUITY COMPENSATION PLAN

                   AMENDED AND RESTATED AS OF AUGUST 18, 1999

         The purpose of the Infonautics, Inc. Amended and Restated 1996 Equity
Compensation Plan (the "Plan") is to provide (i) designated officers (including
officers who are also directors) and other employees of Infonautics, Inc. (the
"Company") and its subsidiaries, (ii) non-employee members of the board of
directors of the Company (the "Board"), and (iii) independent contractors and
consultants who perform valuable services for the Company or its subsidiaries,
with the opportunity to receive grants of incentive stock options, nonqualified
stock options, stock appreciation rights, restricted stock and performance
units. The Company believes that the Plan will cause the participants to
contribute materially to the growth of the Company, thereby benefitting the
Company's shareholders, and will align the economic interests of the
participants with those of the shareholders.

         1.  ADMINISTRATION

         The Plan shall be administered and interpreted by a committee (the
"Committee"), which shall consist of two or more persons appointed by the Board,
all of whom shall be "non-employee directors" as defined under Rule 16b-3 under
the Securities Exchange Act of 1934 (the "Exchange Act") and "outside directors"
as defined under section 162(m) of the Internal Revenue Code of 1986, as amended
(the "Code") and related Treasury regulations.

         The Committee shall have the sole authority to (i) determine the
individuals to whom grants shall be made under the Plan, (ii) determine the
type, size and terms of the grants to be made to each such individual, (iii)
determine the time when the grants will be made and the duration of any
applicable exercise or restriction period, including the criteria for vesting
and the acceleration of vesting and (iv) deal with any other matters arising
under the Plan.

         The Committee shall have full power and authority to administer and
interpret the Plan, to make factual determinations and to adopt or amend such
rules, regulations, agreements and instruments for implementing the Plan and for
the conduct of its business as it deems necessary or advisable, in its sole
discretion. The Committee's interpretations of the Plan and all determinations
made by the Committee pursuant to the powers vested in it hereunder shall be
conclusive and binding on all persons having any interests in the Plan or in any
awards granted hereunder. All powers of the Committee shall be executed in its
sole discretion, in the best interest of the Company and in keeping with the
objectives of the Plan and need not be uniform as to similarly situated
individuals.

         2.  GRANTS

         Incentives under the Plan shall consist of grants of incentive stock
options, nonqualified stock options, stock appreciation rights, restricted stock
and performance units (hereinafter collectively referred to as "Grants"). All
Grants shall be subject to the terms and conditions set forth herein and to
those other terms and conditions consistent with this Plan as the Committee
deems appropriate and as are specified in writing by the Committee to the
individual (the "Grant Instrument"). The Committee shall approve the form and
provisions of each Grant Instrument. Grants under a particular section of the
Plan need not be uniform as among the grantees.

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         3.  SHARES SUBJECT TO THE PLAN

         (a) Subject to the adjustment specified below, the aggregate number of
shares of Class A Common Stock of the Company (the "Company Stock") that may be
issued or transferred under the Plan is 2,500,000 shares. Notwithstanding
anything in the Plan to the contrary, the maximum aggregate number of shares of
Company Stock that shall be subject to Grants made under the Plan to any one
individual during any calendar year shall be 250,000 shares. The shares may be
authorized but unissued shares of Company Stock or reacquired shares of Company
Stock, including shares purchased by the Company on the open market for purposes
of the Plan. If and to the extent options granted under the Plan terminate,
expire, or are canceled, forfeited, exchanged or surrendered without having been
exercised or if any shares of restricted stock are forfeited, the shares subject
to such Grants shall again be available for purposes of the Plan.

         (b) If there is any change in the number or kind of shares of Company
Stock outstanding by reason of a stock dividend, a recapitalization, stock
split, or combination or exchange of shares, or merger, reorganization or
consolidation in which the Company is the surviving corporation,
reclassification or change in par value or by reason of any other extraordinary
or unusual events affecting the outstanding Company Stock as a class without the
Company's receipt of consideration, or if the value of outstanding shares of
Company Stock is substantially reduced due to the Company's payment of an
extraordinary dividend or distribution, the maximum number of shares of Company
Stock available for Grants, the maximum number of shares of Company Stock that
may be subject to Grants to any one individual under the Plan in any calendar
year, the number of shares covered by outstanding Grants, and the price per
share or the applicable market value of such Grants shall be proportionately
adjusted by the Committee to reflect any increase or decrease in the number or
kind of issued shares of Company Stock to preclude the enlargement or dilution
of rights and benefits under such Grants; provided, however, that any fractional
shares resulting from such adjustment shall be eliminated. For purposes of this
Section 3(b), "shares of Company Stock" and "shares" include referenced shares
with respect to SARs or, to the extent applicable, performance units. The
adjustments determined by the Committee shall be final, binding and conclusive.
Notwithstanding the foregoing, no adjustment shall be authorized or made
pursuant to this Section to the extent that such authority or adjustment would
cause any incentive stock option to fail to comply with section 422 of the Code.

         4.  ELIGIBILITY FOR PARTICIPATION

         All employees of the Company and its subsidiaries ("Employees"),
including Employees who are officers or members of the Board, shall be eligible
to participate in the Plan. All members of the Board who are not employees of
the Company or any of its subsidiaries ("Non-Employee Directors") shall be
eligible only to receive nonqualified stock options pursuant to Section 6. Any
independent contractors or consultants who perform valuable services to the
Company or any of its subsidiaries ("Consultants") shall be eligible to
participate in the Plan, but shall not be eligible to receive incentive stock
options. The Committee shall select the Employees and Consultants to receive
Grants and determine the number of shares of Company Stock subject to a
particular Grant in such manner as the Committee determines. (Employees and
Consultants who receive Grants under this Plan shall hereinafter be referred to
as "Grantees".)

         Nothing contained in this Plan shall be construed to (i) limit the
right of the Committee to make Grants under this Plan in connection with the
acquisition, by purchase, lease, merger, consolidation or otherwise, of the
business or assets of any corporation, firm or association, including options
granted to employees thereof who become Employees, or for other proper corporate
purpose, or (ii) limit the right of the Company to grant stock options or make
other awards outside of this Plan.

         5.  GRANTING OF OPTIONS

         (a) NUMBER OF SHARES. The Committee, in its sole discretion, shall
determine the number of shares of Company Stock that will be subject to each
Grant of stock options.

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         (b) TYPE OF OPTION AND PRICE. The Committee may grant options intended
to qualify as "incentive stock options" within the meaning of section 422 of the
Code ("Incentive Stock Options") or options which are not intended to so qualify
("Nonqualified Stock Options") or any combination of Incentive Stock Options and
Nonqualified Stock Options (hereinafter collectively the "Stock Options"), all
in accordance with the terms and conditions set forth herein; provided, however,
that Consultants shall not be eligible to receive Incentive Stock Options.

         The purchase price of Company Stock subject to a Stock Option shall be
determined by the Committee and may be equal to, greater than, or less than the
Fair Market Value (as defined below) of a share of such Company Stock on the
date such Stock Option is granted; provided, however, that the purchase price of
Company Stock subject to an Incentive Stock Option shall be equal to, or greater
than, the Fair Market Value of a share of such Stock on the date such Stock
Option is granted.

         If the Company Stock is traded in a public market, then the "Fair
Market Value" per share shall be, if the principal trading market for the
Company Stock is a national securities exchange or the National Market segment
of the NASDAQ Stock Market, the last reported sale price thereof on the relevant
date or (if there were no trades on that date) the latest preceding date upon
which a sale was reported, or, if the Company Stock is not principally traded on
such exchange or market, the mean between the last reported "bid" and "asked"
prices thereof on the relevant date, as reported on NASDAQ or, if not so
reported, as reported by the National Daily Quotation Bureau, Inc. or as
reported in a customary financial reporting service, as applicable and as the
Committee determines. If the Company Stock is not traded in a public market or
subject to reported transactions or "bid" or "ask" quotations as set forth
above, the "Fair Market Value" per share shall be as determined by the
Committee.

         (c) OPTION TERM. The Committee shall determine the term of each Stock
Option. The term of any Stock Option shall not exceed ten years from the date of
grant.

         (d) EXERCISABILITY OF OPTIONS. Stock Options shall become exercisable
in accordance with the terms and conditions determined by the Committee, in its
sole discretion, and specified in the Grant Instrument. The Committee, in its
sole discretion, may accelerate the exercisability of any or all outstanding
Stock Options at any time for any reason. In addition, all outstanding Stock
Options automatically shall become fully and immediately exercisable upon a
Change of Control (as defined herein) in accordance with the provisions of
Section 11, unless the Committee determines otherwise.

         (e) MANNER OF EXERCISE. A Grantee may exercise a Stock Option which has
become exercisable, in whole or in part, by delivering a notice of exercise to
the Committee with accompanying payment of the option price in accordance with
Subsection (g) below. Such notice may instruct the Company to deliver shares of
Company Stock due upon the exercise of the Stock Option to any registered broker
or dealer designated by the Committee ("Designated Broker") in lieu of delivery
to the Grantee. Such instructions must designate the account into which the
shares are to be deposited. The Grantee may tender a notice of exercise, which
has been properly executed by the Grantee and the aforementioned delivery
instructions to any Designated Broker.

         (f) TERMINATION OF EMPLOYMENT, DISABILITY OR DEATH.

                  (i) In the event that a Grantee ceases to be an Employee or a
Consultant, as the case may be, of the Company for any reason other than a
"disability", death, or "termination for cause", any Stock Option which is
otherwise exercisable by the Grantee shall terminate unless exercised within 90
days of the date on which the Grantee ceases to be an Employee or Consultant of
the Company (or within such other period of time as may be specified in the
Grant Instrument), but in any event no later than the date of expiration of the
option term. Any of the Grantee's Stock Options which are not otherwise
exercisable as of the date on which the Grantee ceases to be an Employee or
Consultant of the Company shall terminate as of such date.

                  (ii) In the event the Grantee ceases to be an Employee or
Consultant of the Company on account of a "termination for cause" by the
Company, any Stock Option held by the Grantee shall

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terminate as of the date the Grantee ceases to be an Employee or Consultant of
the Company.

                  (iii) In the event the Grantee ceases to be an Employee or
Consultant of the Company because the Grantee is "disabled", any Stock Option
which is otherwise exercisable by the Grantee shall terminate unless exercised
within one year of the date on which the Grantee ceases to be an Employee or
Consultant of the Company (or within such other period of time as may be
specified in the Grant Instrument), but in any event no later than the date of
expiration of the option term. Any of the Grantee's Stock Options which are not
otherwise exercisable as of the date on which the Grantee ceases to be an
Employee or Consultant shall terminate as of such date.

                  (iv) In the event of the death of the Grantee while the
Grantee is an Employee or Consultant of the Company or within not more than 90
days of the date on which the Grantee ceases to be an Employee or Consultant of
the Company on account of a termination of employment specified in Section
5(f)(i) of the Plan (or within such other period of time as may be specified in
the Grant Instrument), any Stock Option which is otherwise exercisable by the
Grantee shall terminate unless exercised within one year of the date on which
the Grantee ceases to be an employee of the Company (or within such other period
of time as may be specified in the Grant Instrument), but in any event no later
than the date of expiration of the option term. Any of the Grantee's Stock
Options which are not otherwise exercisable as of the date on which the Grantee
ceases to be an Employee or Consultant shall terminate as of such date.

                  (v) For purposes of this Section 5(f), the term "Company"
shall include the Company's subsidiaries and the following terms shall be
defined as follows: (A) "disability" shall mean a Grantee's becoming disabled
within the meaning of section 22(e)(3) of the Code and (B) "termination for
cause" shall mean, except to the extent otherwise provided in a Grantee's Grant
Instrument, a finding by the Committee, after full consideration of the facts
presented on behalf of both the Company and the Grantee, that the Grantee has
breached his or her employment or service contract with the Company, or has been
engaged in disloyalty to the Company, including, without limitation, fraud,
embezzlement, theft, commission of a felony or proven dishonesty in the course
of his or her employment or service, or has disclosed trade secrets or
confidential information of the Company. In such event, in addition to the
immediate termination of the Stock Option, the Grantee shall automatically
forfeit all option shares for any exercised portion of a Stock Option for which
the Company has not yet delivered the share certificates upon refund by the
Company of the option price.

         (g) SATISFACTION OF OPTION PRICE. The Grantee shall pay the option
price specified in the Grant Instrument in (i) cash, (ii) with the approval of
the Committee, by delivering shares of Company Stock owned by the Grantee
(including Company Stock acquired in connection with the exercise of a Stock
Option, subject to such restrictions as the Committee deems appropriate) and
having a Fair Market Value on the date of exercise equal to the option price or
(iii) through any combination of (i) and (ii). The Grantee shall pay the option
price and the amount of withholding tax due, if any, at the time of exercise.
Shares of Company Stock shall not be issued or transferred upon exercise of a
Stock Option until the option price is fully paid and any required withholding
is made.

         (h) ELECTION TO WITHHOLD SHARES. Grantees may make an election to
satisfy the Company income tax withholding obligation with respect to a Stock
Option by having shares withheld up to an amount that does not exceed the
Grantee's minimum withholding tax rate for federal (including FICA), state and
local tax liabilities. Such election must be in the form and manner prescribed
by the Committee.

         (i) LIMITS ON INCENTIVE STOCK OPTIONS. Each Incentive Stock Option
shall provide that, to the extent that the aggregate Fair Market Value of the
Company Stock on the date of the grant with respect to which Incentive Stock
Options are exercisable for the first time by a Grantee during any calendar year
under the Plan or any other stock option plan of the Company exceeds $100,000,
then such option as to the excess shall be treated as a Nonqualified Stock
Option. An Incentive Stock Option shall not be granted to any participant who is
not an Employee of the Company or any "subsidiary" within the meaning of section
424(f) of the Code. An Incentive Stock Option shall not be granted to any
Employee

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who, at the time of grant, owns stock possessing more than 10 percent of the
total combined voting power of all classes of stock of the Company or any
"parent" or "subsidiary" of the Company within the meaning of section 424(e) and
(f) of the Code, unless the option price per share is not less than 110% of the
Fair Market Value of Company Stock on the date of grant and the option exercise
period is not more than five years from the date of grant.

         6.  FORMULA OPTION GRANTS TO NON-EMPLOYEE DIRECTORS

         A Non-Employee Director shall be entitled to receive Nonqualified Stock
Options in accordance with this Section 6.

         (a) INITIAL GRANT. Each Non-Employee Director who is a member of the
Board on the effective date of this Plan (as specified in Section 20) will
receive a grant of a Nonqualified Stock Option to purchase 10,000 shares of
Company Stock as of such date. Each Non-Employee Director who first becomes a
member of the Board after the effective date of this Plan (as specified in
Section 20), will receive a grant of a Nonqualified Stock Option to purchase
10,000 shares immediately upon the date he or she becomes a member of the Board.

         (b) ANNUAL GRANTS. On each date that the Company holds its annual
meeting of shareholders, commencing with the 1996 calendar year, each
Non-Employee Director in office both immediately before and after the annual
election of directors will receive a grant of a Nonqualified Stock Option to
purchase 2,500 shares of Company Stock. The date of grant of such annual Grants
shall be the date of such annual meeting of shareholders.

         (c) OPTION PRICE. The purchase price per share of Company Stock subject
to a Stock Option granted under this Section 6 shall be equal to the Fair Market
Value of a share of Company Stock on the date of grant; provided that the
purchase price for the initial grant provided in Section 6(a) hereof to
NonEmployee Directors who are members of the Board on the effective date of the
Plan (as specified in Section 20) shall be equal to the initial public offering
price of Company Stock.

         (d) OPTION TERM.  The term of each Stock Option granted pursuant to
this Section 6 shall be five years.

         (e) EXERCISABILITY. Options granted under this Section 6 shall be fully
and immediately exercisable upon the date of grant.

         (f) ADMINISTRATION. The provisions of this Section 6 are intended to
operate automatically and not require administration. However, to the extent
that administrative determinations are required, the provisions of this Section
6 shall be made by the members of the Board who are not eligible to receive
grants under this Section 6, but in no event shall such determinations affect
the eligibility of Grantees, the determination of the exercise price, the timing
of the grants or the number of shares subject to Stock Options granted
hereunder.

         (g) APPLICABILITY OF PLAN PROVISIONS. Except as otherwise provided in,
and not inconsistent with, this Section 6, the Nonqualified Stock Options
granted to Non-Employee Directors shall be subject to the provisions of this
Plan applicable to Nonqualified Stock Options granted to other persons.

         7.  RESTRICTED STOCK GRANTS

         The Committee may issue or transfer shares of Company Stock to an
Employee under a Grant (a "Restricted Stock Grant"), upon such terms as the
Committee deems appropriate. The following provisions are applicable to
Restricted Stock Grants:

         (a) GENERAL REQUIREMENTS. Shares of Company Stock issued pursuant to
Restricted Stock Grants may be issued for cash consideration or for no cash
consideration, at the sole discretion of the Committee. The Committee shall
establish conditions under which restrictions on the transfer of shares

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of Company Stock shall lapse over a period of time or according to such other
criteria as the Committee deems appropriate. The period of years during which
the Restricted Stock Grant will remain subject to restrictions will be
designated in the Grant Instrument as the "Restriction Period."

         (b) NUMBER OF SHARES. The Committee shall grant to each Grantee a
number of shares of Company Stock pursuant to a Restricted Stock Grant in such
manner as the Committee determines.

         (c) TERMINATION OF EMPLOYMENT OR SERVICES. If the Grantee's employment
or service with the Company terminates during a period designated in the Grant
Instrument as the Restriction Period, or if other specified conditions are not
met, the Restricted Stock Grant shall terminate as to all shares covered by the
Grant as to which restrictions on transfer have not lapsed, and those shares of
Company Stock must be immediately returned to the Company. The Committee may,
however, provide for complete or partial exceptions to this requirement as it
deems equitable.

         (d) RESTRICTIONS ON TRANSFER AND LEGEND ON STOCK CERTIFICATE. During
the Restriction Period, a Grantee may not sell, assign, transfer, pledge or
otherwise dispose of the shares of Company Stock to which such Restriction
Period applies except to a Successor Grantee under Section 10. Each certificate
for a share issued or transferred under a Restricted Stock Grant shall contain a
legend giving appropriate notice of the restrictions in the Grant. The Grantee
shall be entitled to have the legend removed from the stock certificate or
certificates covering any of the shares subject to restrictions when all
restrictions on such shares have lapsed.

         (e) RIGHT TO VOTE AND TO RECEIVE DIVIDENDS. During the Restriction
Period, unless the Committee determines otherwise, the Grantee shall have the
right to vote shares subject to the Restricted Stock Grant and to receive any
dividends paid on such shares, subject to such restrictions as the Committee
deems appropriate.

         (f) LAPSE OF RESTRICTIONS. All restrictions imposed under the
Restricted Stock Grant shall lapse upon the expiration of the applicable
Restriction Period and the satisfaction of any conditions imposed by the
Committee. The Committee may determine, as to any or all Restricted Stock
Grants, that all the restrictions shall lapse without regard to any Restriction
Period. All restrictions under all outstanding Restricted Stock Grants shall
automatically and immediately lapse upon a Change of Control, unless the
Committee determines otherwise.

         (g) ELECTION TO WITHHOLD SHARES. Grantees may make an election to
satisfy the Company's income tax withholding obligation with respect to a
Restricted Stock Grant by having shares withheld up to an amount that does not
exceed the participant's minimum withholding tax rate for federal (including
FICA), state and local tax liabilities. Such election must be in the form and
manner prescribed by the Committee.

         8.  STOCK APPRECIATION RIGHTS

         (a) GENERAL REQUIREMENTS. The Committee may grant stock appreciation
rights ("SARs") to any Grantee in tandem with any Stock Option, for all or a
portion of the applicable Stock Option, either at the time the Stock Option is
granted or at any time thereafter while the Stock Option remains outstanding;
provided, however, that in the case of an Incentive Stock Option, such rights
may be granted only at the time of the Grant of such Stock Option. Unless the
Committee determines otherwise, the base price of each SAR shall be equal to the
greater of (i) the exercise price of the related Stock Option or (ii) the Fair
Market Value of a share of Company Stock as of the date of Grant of such SAR. An
SAR is exercisable only during the period when the Stock Option to which it is
related is also exercisable.

         (b) NUMBER OF SARS. The number of SARs granted to a Grantee which shall
be exercisable during any given period of time shall not exceed the number of
shares of Company Stock which the Grantee may purchase upon the exercise of the
related Stock Option during such period of time. Upon the exercise of a Stock
Option, the SARs relating to the Company Stock covered by such Stock Option
shall terminate. Upon the exercise of SARs, the related Stock Option shall
terminate to the extent of an

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equal number of shares of Company Stock.

         (c) VALUE OF SARS. Upon a Grantee's exercise of some or all of the
Grantee's SARs, the Grantee shall receive in settlement of such SARs an amount
equal to the value of the stock appreciation for the number of SARs exercised,
payable in cash, Company Stock or a combination thereof. The stock appreciation
for an SAR is the difference between the base price of the SAR as described in
subsection (a) and the Fair Market Value of the underlying Company Stock on the
date of exercise of such SAR.

         (d) FORM OF PAYMENT. At the time of such exercise, the Grantee shall
have the right to elect the portion of the amount to be received that shall
consist of cash and the portion that shall consist of Common Stock, which for
purposes of calculating the number of shares of Company Stock to be received,
shall be valued at their Fair Market Value on the date of exercise of such SARs.
The Committee shall have the right to disapprove a Grantee's election to receive
cash in full or partial settlement of the SARs exercised and to require that
shares of Company Stock be delivered in lieu of cash. If shares of Company Stock
are to be received upon exercise of an SAR, cash shall be delivered in lieu of
any fractional share.

         9.  PERFORMANCE UNITS

         (a) GENERAL REQUIREMENTS. The Committee may grant performance units
("Performance Units") to any Grantee. Each Performance Unit shall represent the
right of a Grantee to receive an amount equal to the value of the Performance
Unit, determined in the manner established by the Committee at the time of
grant.

         (b) PERFORMANCE PERIOD. At the time of grant of each Performance Unit,
the Committee shall establish a performance period during which performance
shall be measured ("Performance Period"). There may be more than one grant in
existence at any one time, and Performance Periods may differ.

         (c) PERFORMANCE GOALS. Prior to the beginning of a Performance Period,
the Committee shall establish in writing performance goals for the Company and
its various operating units ("Performance Goals"). The Performance Goals will be
comprised of specified annual levels of one or more performance criteria as the
Committee may deem appropriate such as: earnings per share, net earnings,
operating earnings, unit volume, net sales, market share, balance sheet
measurements, cash return on assets, shareholder return, or return on capital.
The Committee may disregard or offset the effect of any special charges or gains
or cumulative effect of a change in accounting in determining the attainment of
Performance Goals. Awards of Performance Units may also be payable when Company
performance, as measured by one or more of the above criteria, as compared to
peer companies, meets or exceeds an objective target established by the
Committee.

         (d) PERFORMANCE MEASURES. Performance Units shall be granted to a
Grantee contingent upon the attainment of Performance Goals in accordance with
Section 9(c).

         (e) PERFORMANCE UNIT VALUE. Each Performance Unit shall have a maximum
dollar value established by the Committee at the time of the grant.
Performance Units earned will be determined by the Committee in respect of a
Performance Period in relation to the degree of attainment of Performance Goals.
The measure of a Performance Unit may, in the Committee's discretion, be equal
to the Fair Market Value of a share of Company Stock.

         (f) GRANT CRITERIA. In determining the number of Performance Units to
be granted to any Grantee, the Committee shall take into account the Grantee's
responsibility level, performance, potential, cash compensation level, other
incentive awards, and such other considerations as it deems appropriate.

         (g) ANNOUNCEMENT OF GRANTS. The Committee shall certify and announce
the results for each Performance Period to all Grantees immediately following
the announcement of the Company's financial results for the Performance Period
and the filing of its Form 10-K, normally within 90 days following the end of
such Performance Period.

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         (h) PAYMENT. Following the end of a Performance Period, a Grantee
holding Performance Units will be entitled to receive payment of an amount, not
exceeding the maximum value of the Performance Units, based on the achievement
of the Performance Goals for such Performance Period, as determined by the
Committee. Payment of Performance Units shall be made in cash, except that, in
the discretion of the Committee, Performance Units which are measured using
Company Stock may be paid in shares of Company Stock. Payment shall be made in a
lump sum or in installments and shall be subject to such other terms and
conditions as shall be determined by the Committee.

         (i) TERMINATION OF EMPLOYMENT OR SERVICES AND CHANGE IN CONTROL.

                  (i) A Performance Unit Grant shall terminate for all purposes
if the Grantee does not remain continuously in the employ or service of the
Company at all times during the applicable Performance Period, except as may
otherwise be determined by the Committee, provided that in the event the Grantee
terminates employment with the Company within 12 months following a Change of
Control, a percentage of the Performance Unit payments, if any, for the full
Performance Period in which the Grantee so terminates equal to the percentage of
the Performance Period during which the Grantee was in the employ or service of
the Company and all amounts for the prior Performance Period, if not then
distributed, shall be distributed to such Grantee in a lump sum.

                  (ii) In the event that a Grantee holding a Performance Unit
terminates employment with or ceases to provide services to the Company
following the end of the applicable Performance Period, but prior to full
payment according to the terms of the Performance Unit award, payment shall be
made in accordance with the terms established by the Committee for the payment
of such Performance Unit.

         10. TRANSFERABILITY OF GRANTS

         Only the Grantee or his or her authorized representative may exercise
rights under a Grant. Such persons may not transfer those rights except by will
or by the laws of descent and distribution or, with respect to Grants other than
Incentive Stock Options, if permitted in any specific case by the Committee in
its sole discretion, pursuant to a qualified domestic relations order as defined
under the Code or Title I of the Employee Retirement Income Security Act of
1974, as amended or the regulations thereunder . When a Grantee dies, the
representative or other person entitled to succeed to the rights of the Grantee
("Successor Grantee") may exercise such rights. A Successor Grantee must furnish
proof satisfactory to the Company of his or her right to receive the Grant under
the Grantee's will or under the applicable laws of descent and distribution.
Notwithstanding the foregoing, the Committee may provide, in a Grant Instrument,
that a Grantee may transfer Nonqualified Stock Options to his or her children,
grandchildren or spouse or to one or more trusts for the benefit of such family
members or to partnerships in which such family members are the only partners (a
"Family Transfer"), provided that the Grantee receives no consideration for a
Family Transfer and the Grant Instruments relating to Nonqualified Stock Options
transferred in a Family Transfer continue to be subject to the same terms and
conditions that were applicable to such Nonqualified Stock Options immediately
prior to the Family Transfer.

         11. CHANGE OF CONTROL OF THE COMPANY

         As used herein, a "Change of Control" shall be deemed to have occurred
if:

                  A liquidation or dissolution of the Company (excluding
transfers to subsidiaries) or the sale of all or substantially all of the
Company's assets occurs;

                  As a result of a tender offer, stock purchase, other stock
acquisition, merger, consolidation, recapitalization, reverse split or sale or
transfer of assets, any person or group (as such terms are used in and under
Section 13(d)(3) or 14(d)(2) of the Exchange Act) becomes the beneficial owner
(as defined in Rule 13-d under the Exchange Act), directly or indirectly, of
securities of the Company representing more than 40% of the common stock of the
Company or the combined voting power of the Company's then outstanding
securities; provided, however, that for purposes of this subsection 11(b), a
person or group shall not include the Company or any subsidiary or any employee

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benefit plan (or related trust) sponsored or maintained by the Company or any
subsidiary, or Marvin I. Weinberger, any affiliate of Marvin I. Weinberger or
any holders of the Class B Common Stock of the Company;

                  If at least a majority of the Board at any time does not
consist of individuals who were elected, or nominated for election, by directors
in office at the time of such election or nomination; or

                  The Company merges or consolidates with any other corporation
(other than a wholly owned subsidiary) and is not the surviving corporation (or
survives only as a subsidiary of another corporation).

         12. CONSEQUENCES OF A CHANGE OF CONTROL

         (a)      NOTICE.

                  (i) If a Change of Control described in Section 11(a), (b) or
(d) will occur, then, not later than 10 days after the approval by the
shareholders of the Company (or approval by the Board, if shareholder action is
not required) of such Change of Control, the Company shall give each Grantee
with any outstanding Stock Options or SARs written notice of such proposed
Change of Control.

                  (ii) If a Change of Control described in Section 11(b) may
occur without approval by the shareholders (or approval by the Board) and does
so occur, or if a Change of Control described in Section 11(c) occurs, then, not
later than 10 days after such Change of Control, the Company shall give each
Optionee with any outstanding Stock Options or SARs written notice of the Change
of Control.

         (b) ELECTION PERIOD. In connection with the Change of Control and
effective only upon such Change of Control, each Grantee shall thereupon have
the right, within 90 days after such written notice is sent by the Company (the
"Election Period"), to make an election as described in Subsection (c) with
respect to all of his or her outstanding Stock Options or SARs (whether the
right to exercise such Stock Options or SARs has then accrued or the right to
exercise such Stock Options or SARs will accrue or has accrued upon the Change
of Control).  Notwithstanding anything in this Section 12 to the contrary, in
the event that the Committee grants Stocks Options which, pursuant to the
Committee's determination, shall not become fully and immediately
exercisable upon a Change of Control, such Stock Options shall not be subject
to the Election Period or the election right set forth in paragraphs (b) and
(c) of this Section 12.

         (c) ELECTION RIGHT. During the Election Period, each Grantee shall have
the right to elect to exercise in full any installments of such Stock Options or
SARs not previously exercised.

         (d) TERMINATION OF STOCK OPTIONS. If a Grantee does not make a timely
election in accordance with Subsection (c) in connection with a Change of
Control where the Company is not the surviving corporation (or survives only as
a subsidiary of another corporation), the Grantee's Stock Options or SARs shall
terminate as of the Change of Control. Notwithstanding the foregoing, a Stock
Option or SAR will not terminate if assumed by the surviving or acquiring
corporation, or its parent, upon a merger or consolidation and, with respect to
an Incentive Stock Option, the assumption of the Stock Option occurs under
circumstances which are not deemed a modification of the Stock Option within the
meaning of sections 424(a) and 424(h)(3)(A) of the Code.

         (e)     ACCOUNTING AND TAX LIMITATIONS.  Notwithstanding the foregoing,

                  (i) if the right described in Subsection (c) in connection
with SARs would make the applicable Change of Control ineligible for pooling of
interests accounting treatment or make such Change of Control ineligible for
desired tax treatment with respect to such Change of Control and, but for those
provisions, the Change of Control would otherwise qualify for such treatment,
the Grantee shall receive shares of Company Stock with a Fair Market Value equal
to the cash that would otherwise be payable pursuant to Subsection (c) in
substitution for the cash, and

                  (ii) if the termination of the Stock Options described in
Subsection (d) would make the applicable Change of Control ineligible for
pooling of interests accounting treatment and, but for such provision, the
Change of Control would otherwise qualify for such treatment, each affected
Grantee shall receive a replacement or substitute stock option issued by the
surviving or acquiring corporation.

<PAGE>

         13. AMENDMENT AND TERMINATION OF THE PLAN

         (a) AMENDMENT. The Board may amend or terminate the Plan at any time;
provided, however, that any amendment that increases the aggregate number (or
individual limit for any single Grantee) of shares of Company Stock that may be
issued or transferred under the Plan (other than by operation of Section 3(b)),
or modifies the requirements as to eligibility for participation in the Plan,
shall be subject to approval by the shareholders of the Company and provided,
further, that the Board shall not amend the Plan without shareholder approval if
such approval is required by Section 162(m) of the Code.

         (b) TERMINATION OF PLAN. The Plan shall terminate on the day
immediately preceding the tenth anniversary of its effective date unless
terminated earlier by the Board or unless extended by the Board with the
approval of the shareholders.

         (c) TERMINATION AND AMENDMENT OF OUTSTANDING GRANTS. A termination or
amendment of the Plan that occurs after a Grant is made shall not materially
impair the rights of a Grantee unless the Grantee consents or unless the
Committee acts under Section 21(b) hereof. The termination of the Plan shall not
impair the power and authority of the Committee with respect to an outstanding
Grant. Whether or not the Plan has terminated, an outstanding Grant may be
terminated or amended under Section 21(b) hereof or may be amended by agreement
of the Company and the Grantee consistent with the Plan.

         (d) GOVERNING DOCUMENT. The Plan shall be the controlling document. No
other statements, representations, explanatory materials or examples, oral or
written, may amend the Plan in any manner. The Plan shall be binding upon and
enforceable against the Company and its successors and assigns.

         14. FUNDING OF THE PLAN

         This Plan shall be unfunded. The Company shall not be required to
establish any special or separate fund or to make any other segregation of
assets to assure the payment of any Grants under this Plan. In no event shall
interest be paid or accrued on any Grant, including unpaid installments of
Grants.

         15. RIGHTS OF PARTICIPANTS

         Except as provided in Section 6, nothing in this Plan shall entitle any
Employee, Consultant or other person to any claim or right to be granted a Grant
under this Plan. Neither this Plan nor any action taken hereunder shall be
construed as giving any individual any rights to be retained by or in the employ
of the Company or any other employment rights.

         16. NO FRACTIONAL SHARES

         No fractional shares of Company Stock shall be issued or delivered
pursuant to the Plan or any Grant. The Committee shall determine whether cash,
other awards or other property shall be issued or paid in lieu of such
fractional shares or whether such fractional shares or any rights thereto shall
be forfeited or otherwise eliminated.

         17. WITHHOLDING OF TAXES

         The Company shall have the right to deduct from all Grants paid in
cash, or from other wages paid to an employee of the Company, any federal, state
or local taxes required by law to be withheld with respect to such cash awards
and, in the case of Grants paid in Company Stock, the Grantee or other person
receiving such shares shall be required to pay to the Company the amount of any
such taxes which the Company is required to withhold with respect to such
Grants, or the Company shall have the right to deduct from other wages paid to
the employee by the Company the amount of any withholding due with respect to
such Grants.

         18. REQUIREMENTS FOR ISSUANCE OF SHARES

<PAGE>

         No Company Stock shall be issued or transferred in connection with any
Grant hereunder unless and until all legal requirements applicable to the
issuance or transfer of such Company Stock have been complied with to the
satisfaction of the Committee. The Committee shall have the right to condition
any Grant made to any Grantee hereunder on such Grantee's undertaking in writing
to comply with such restrictions on his or her subsequent disposition of such
shares of Company Stock as the Committee shall deem necessary or advisable as a
result of any applicable law, regulation or official interpretation thereof, and
certificates representing such shares may be legended to reflect any such
restrictions. Certificates representing shares of Company Stock issued under the
Plan will be subject to such stop-transfer orders and other restrictions as may
be applicable under such laws, regulations and other obligations of the Company,
including any requirement that a legend or legends be placed thereon.

         19. HEADINGS

         Section headings are for reference only. In the event of a conflict
between a title and the content of a Section, the content of the Section shall
control.

         20. EFFECTIVE DATE OF THE PLAN

         This Plan became effective upon consummation of the initial public
offering of the Company Stock. The amendment and restatement of the Plan was
effective as of April 1, 1997.

         21. MISCELLANEOUS

         (a) SUBSTITUTE GRANTS. The Committee may make a Grant to an employee of
another corporation who becomes an Employee by reason of a corporate merger,
consolidation, acquisition of stock or property, reorganization or liquidation
involving the Company or any of its subsidiaries in substitution for a stock
option or restricted stock grant made by such corporation ("Substituted Stock
Incentives"). The terms and conditions of the substitute grant may vary from the
terms and conditions required by the Plan and from those of the Substituted
Stock Incentives. The Committee shall prescribe the provisions of the substitute
grants.

         (b) COMPLIANCE WITH LAW. The Plan, the exercise of Stock Options and
the obligations of the Company to issue or transfer shares of Company Stock
under Grants shall be subject to all applicable laws and to approvals by any
governmental or regulatory agency as may be required. With respect to persons
subject to Section 16 of the Exchange Act, it is the intent of the Company that
the Plan and all transactions under the Plan comply with all applicable
provisions of Rule 16b-3 or its successors under the Exchange Act. The Committee
may revoke any Grant if it is contrary to law or modify a Grant to bring it into
compliance with any valid and mandatory government regulation. The Committee may
also adopt rules regarding the withholding of taxes on payments to Grantees. The
Committee may, in its sole discretion, agree to limit its authority under this
Section.

         (c) OWNERSHIP OF STOCK. A Grantee or Successor Grantee shall have no
rights as a shareholder with respect to any shares of Company Stock covered by a
Grant until the shares are issued or transferred to the Grantee or Successor
Grantee on the stock transfer records of the Company.

         (d) GOVERNING LAW. The validity, construction, interpretation and
effect of the Plan and Grant Instruments issued under the Plan shall exclusively
be governed by and determined in accordance with the law of the Commonwealth of
Pennsylvania.<PAGE>

                                                                     Exhibit 4.1

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT"), OR APPLICABLE STATE SECURITIES LAWS
(COLLECTIVELY, THE "LAWS"). THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND
MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF
EITHER (I) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
LAWS, OR (II) AN OPINION OF COUNSEL PROVIDED TO THE ISSUER IN FORM, SUBSTANCE
AND SCOPE REASONABLY ACCEPTABLE TO THE ISSUER TO THE EFFECT THAT REGISTRATION IS
NOT REQUIRED UNDER THE LAWS DUE TO AN AVAILABLE EXCEPTION TO OR EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE LAWS.

                             DATE: DECEMBER 15, 1999

NOTE # 01                                                        U.S.$385,000.00

                                 NURESCELL INC.

          SERIES 1999-A EIGHT PERCENT (8%) CONVERTIBLE PROMISSORY NOTE
                              DUE DECEMBER 1, 2001

        THIS NOTE is one of a duly authorized issue of Notes (a "Note" or the
"Notes") of Nurescell Inc., a corporation duly organized and validly existing
under the laws of the State of Nevada, U.S.A. (the "Company") designated as its
Series 1999-A Eight Percent (8%) Convertible Notes Due December 1, 2001, in an
aggregate principal face value for all Notes of this series of Three Hundred
Eighty Five Thousand and no/100 United States Dollars (US$385,000.00).

        FOR VALUE RECEIVED, the Company promises to pay to THE TRITON PRIVATE
EQUITIES FUND, L.P., the registered holder hereof and its successors and assigns
(the "Holder"), the principal sum of Three Hundred Eighty Five Thousand and
no/100 United States Dollars ($385,000.00) on December 1, 2001 (the "Maturity
Date"), and to pay interest on the principal sum outstanding, at the rate of
eight percent (8%) per annum due and payable in quarterly installments in
arrears, on June 30, September 30, December 31 and March 31 of each year during
the term of

                                       1
<PAGE>

this Note, with the first such payment to be made on March 31, 2000. Accrual of
interest on the outstanding principal amount, payable in cash or Common Stock
(defined hereinafter) at the Company's option, shall commence on the date hereof
and shall continue until payment in full of the outstanding principal amount has
been made or duly provided for. The interest so payable will be paid to the
person in whose name this Note (or one or more predecessor Notes) is registered
on the records of the Company regarding registration and transfers of the Note
(the "Note Register"); provided, however, that the Company's obligation to a
transferee of this Note arises only if such transfer, sale or other disposition
is made in accordance with the terms and conditions of that Securities Purchase
Agreement of even date herewith between the Company and The Triton Private
Equities Fund, L.P. (the "Securities Purchase Agreement").

        The principal of, and interest on, this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts, at the address last appearing on
the Note Register of the Company as designated in writing by the Holder hereof
from time to time. The Company will pay the outstanding principal of and any and
all accrued and unpaid interest due upon this Note on the Maturity Date, less
any amounts required by law to be deducted or withheld, to the record Holder of
this Note as of the fifth business day (as defined in the Securities Purchase
Agreement) prior to the Maturity Date and addressed to such Holder at the last
address appearing on the Note Register. The forwarding of such funds shall
constitute a payment of outstanding principal and interest hereunder and shall
satisfy and discharge the liability for principal and interest on this Note to
the extent of the sum represented by such payment plus any amounts so deducted
or withheld. Except as herein provided, this Note may not be prepaid without the
prior written consent of the Holder. Interest may at the Company's option be
paid in Common Stock, with the number of shares of Common Stock to be delivered
in payment of such interest determined by taking the dollar amount of interest
being paid divided by [the average of the closing bid prices for the Common
Stock for the ten (10) trading days prior to the due date of such interest
payment multiplied by ninety percent (.90)].

        This Note is subject to the following additional provisions:

        1. NOTE EXCHANGEABLE. The Note is exchangeable commencing thirty (30)
days from the date hereof for an equal aggregate principal amount of Notes of
different authorized denominations, as requested by the Holder surrendering the
same, but not of denominations of less than Fifty Thousand United States Dollars
(US$50,000.00) without the Company's written consent. No service charge will be
made for such registration or transfer or exchange.

        2. WITHHOLDING. The Company shall be entitled to withhold from all
payments of principal or interest pursuant to this Note any amounts required to
be withheld under the applicable provisions of the United States income tax or
other applicable laws at the time of such payments.

        3. TRANSFER/EXCHANGE OF NOTE; REGISTERED HOLDER; OPINION OF COUNSEL;
LEGEND. This Note has been issued subject to investment representations of the
original purchaser hereof and may be transferred or exchanged only in compliance
with the Securities Act of 1933, as amended (the "1933 Act") and applicable
state securities laws. Prior to due presentment for transfer of this Note, the
Company and any agent

                                       2
<PAGE>

of the Company may treat the person in whose name this Note is duly registered
on the Company's Note Register as the owner hereof for the purpose of receiving
payment as herein provided and for all other purposes, whether or not this Note
be overdue, and neither the Company nor any such agent shall be affected or
bound by notice to the contrary.

        The Holder understands and acknowledges by its acceptance hereof that
(i) except as provided in the Securities Purchase Agreement and in that
Registration Rights Agreement attached as Exhibit C to the Securities Purchase
Agreement (the "Registration Rights Agreement"), both such documents
incorporated herein by reference, this Note and the shares of common stock in
the Company issuable upon conversion thereof as herein provided ("Conversion
Shares") have not been and are not being registered under the 1933 Act or any
state securities laws, and may not be offered for sale, sold, assigned or
transferred unless (a) subsequently registered thereunder, or (b) the Holder
shall have delivered to the Company an opinion of counsel, reasonably
satisfactory in form, substance and scope to the Company, to the effect that the
securities to be sold, assigned or transferred may be sold, assigned or
transferred pursuant to an exemption from such registration; (ii) any sale of
such securities made in reliance on Rule 144 promulgated under the 1933 Act may
be made only in accordance with the terms of said Rule and further, if said Rule
is not applicable, any resale of such securities under circumstances in which
the seller (or the person through whom the sale is made) may be deemed to be an
underwriter (as that term is defined in the 1933 Act) may require compliance
with some other regulation and/or exemption under the 1933 Act or the rules and
regulations of the United States Securities and Exchange Commission (the "SEC")
thereunder; and (iii) neither the Company nor any other person is under any
obligation to register such securities under the 1933 Act or any state
securities laws (other than pursuant to the terms of the Securities Purchase
Agreement and the Registration Rights Agreement) or to comply with the terms and
conditions of any exemption thereunder.

        Any Conversion Shares issued upon conversion of this Note, and if
applicable, any common stock of the Company issued in payment of interest as
herein provided, shall, if and only to the extent required by law, bear legends
in similar form to the legends set forth on the first page of this Note.

        4. CONVERSION OF NOTE INTO COMMON STOCK; REDEMPTION BY THE COMPANY.

        (a) The Holder of this Note is entitled, at its option, at any time
commencing the earlier of (i) the date on which the Registration Statement (as
defined in the Securities Purchase Agreement) is declared effective by the SEC;
or (ii) the date which is one hundred twenty (120) days after the date first
written at the top of this Note, to convert all or a portion of the original
principal face amount of this Note into shares of common stock in the Company,
$.0001 par value per share (defined herein as the "Common Stock"), at a
conversion price (the "Conversion Price") for each share of Common Stock equal
to the lesser of (x) one hundred twenty-five percent (125%) of the closing bid
price for the Common Stock on the date of issuance of this Note, or (y) a
percentage (the "Applicable Percentage") of the average of the three (3) lowest
closing bid prices for the Common

                                       3
<PAGE>

Stock for the twenty (20) trading days immediately preceding the Conversion Date
(as hereinafter defined), as reported on the National Association of Securities
Dealers OTC Bulletin Board Market (or on such other national securities exchange
or market as the Common Stock may trade at such time). The Applicable Percentage
shall be equal to the following: (i) for conversions made on or before 120 days
after the date of this Note, 105%; (ii) for conversions made between 121 and 150
days after the date of this Note, 103%; (iii) for conversions made between 151
and 180 days after the date of this Note, 100%; (iv) for conversions made
between 181 and 210 days after the date of this Note, 97%; or (v) for
conversions made after 210 days after the date of this Note, 95%.

        Any conversion of this Note shall be achieved by submitting to the
Company the fully completed form of conversion notice attached hereto as Exhibit
I (a "Notice of Conversion"), executed by the Holder of this Note evidencing
such Holder's intention to convert this Note or the specified portion (as herein
provided) hereof. A Notice of Conversion may be submitted via facsimile to the
Company at the telecopier number for the Company provided in the Securities
Purchase Agreement (or at such other number as requested in advance of such
conversion in writing by the Company), and if so submitted the original Notice
of Conversion shall be delivered to the Company within two (2) business days
thereafter. The Company and the Holder shall each keep records with respect to
the portion of this Note then being converted and all portions previously
converted; upon receipt by the Holder of the requisite Conversion Shares, the
outstanding principal amount of the Note shall be reduced by the amount
specified in the Notice of Conversion resulting in such Conversion Shares. The
Company may from time to time, but is not required to, instruct the Holder and
the Holder shall surrender this Note along with the Notice of Conversion for the
purposes of making a notation thereon as to the amount of principal being
converted, or of canceling this Note and issuing a new Note in the same form
with the principal amount of such Note reduced by the amount converted. Such new
or notated Note shall be delivered to the Holder within three (3) business days
after such Holder's surrender to the Company. No fractional shares or scrip
representing fractions of shares will be issued on conversion, but the number of
shares issuable shall be rounded to the nearest whole share. Accrued interest on
the converted portion of the Note shall be payable upon conversion thereof, in
cash or Common Stock at the Conversion Price, at the Company's option. The date
on which a notice of conversion is given (the "Conversion Date") shall be deemed
to be either the date on which the Company receives from the Holder an original
Notice of Conversion duly executed, or, if earlier, the date set forth in such
Notice of Conversion if the original Notice of Conversion is received by the
Company within two (2) business days thereafter.

        In all cases, the Company shall deliver the Conversion Shares to the
Holder within three (3) business days after the Conversion Date with respect to
such Conversion Shares being delivered, and at the address specified in the
Notice of Conversion. The Company acknowledges that the Securities Purchase
Agreement requires that the Company pay liquidated damages for late or
non-delivery of Conversion Shares.

        Subject to the provisions of Paragraph 4(b) hereof, at the Maturity
Date, the remaining portion of this Note which remains unconverted, if any, plus
accrued interest shall be automatically

                                       4
<PAGE>

converted into shares of Common Stock as of the Maturity Date, as if the Holder
had converted the remaining portion of this Note according to the provisions of
this Section 4, with the Conversion Date being equivalent in such event to the
Maturity Date, as if the Holder had provided the Company with a Notice of
Conversion with respect to the outstanding principal amount of this Note on the
Maturity Date. Other than a conversion made on the Maturity Date in accordance
with this paragraph, conversions of this Note must be effected in increments of
at least Ten Thousand U.S. Dollars ($10,000) of principal amount of this Note
(or such lesser outstanding principal amount of this Note).

        (b) Notwithstanding anything herein to the contrary, the Company shall
have the right (but not the obligation) to redeem all or any portion of this
Note, provided the Company is not then in violation of any of its obligations
under this Note or under the Securities Purchase Agreement or any addenda
thereto, under the following conditions. At any time prior to delivery of any
Notice of Conversion (in this Section 4(b), a "Notice") to the Company by the
Holder in accordance with the terms of this Note, the Company may give to the
Holder notice (a "Redemption Notice") that it intends to pay the Holder the Cash
Redemption Amount (as hereinafter defined) with respect to all or such portion
of the Note referred to in the Redemption Notice. The "Cash Redemption Amount"
shall be equal to one hundred percent (100%) of the face amount of the portion
of the Note to be redeemed pursuant to the Redemption Notice, and shall be paid
to the Holder according to the Holder's written instructions to the Company
within three (3) business days after delivery of the Redemption Notice with
respect to such Note or portion thereof to be redeemed. If the Company does not
redeem within the time limits herein specified and according to the terms of
this Section 4(b), then unless waived by the Holder, the Redemption Notice shall
be null and void, and the Holder may convert all or such portion of this Note as
the Holder in its discretion determines. The Company may not redeem any portion
of the Note for which a Notice of Conversion has been submitted prior to or
within three (3) business days after a Redemption Notice is delivered to the
Holder.

        5. OBLIGATIONS OF THE COMPANY HEREIN ARE UNCONDITIONAL. No provision of
this Note shall alter or impair the obligation of the Company, which obligation
is absolute and unconditional, to repay the principal amount of this Note at the
time, place, rate, and in the coin currency, hereinabove stated. This Note and
all other Notes now or hereafter issued in replacement of this Note on the same
or similar terms are direct obligations of the Company. This Note ranks at least
equally with all other Notes now or hereafter issued under the terms set forth
herein. The Conversion Price and number of shares of Common Stock issuable upon
conversion shall be subject to adjustment from time to time as provided in
Section 6 below.

        6. ADJUSTMENTS.

        (a) In the event the Company should at any time or from time to time,
after the date of this Note, fix a record date for the effectuation of a split
or subdivision of the outstanding shares of Common Stock or the determination of
holders of Common Stock entitled to receive a dividend or

                                       5
<PAGE>

other distribution payable in additional shares of Common Stock (equal to at
least ten percent (10%) or more of the Company's then issued and outstanding
shares of Common Stock) or other securities or rights convertible into, or
entitling the holder thereof to receive directly or indirectly additional shares
of Common Stock (hereinafter referred to as "Common Stock Equivalents") without
payment of any consideration by such holder for the additional shares of Common
Stock or the Common Stock Equivalents (including the additional shares of Common
Stock issuable upon conversion or exercise thereof), then, as of such record
date (or the date of such dividend, distribution, split or subdivision if no
record date is fixed), then unless the Conversion Price is otherwise
automatically adjusted in accordance with the terms of this Note, the Conversion
Price shall be appropriately decreased so that the number of shares of Common
Stock issuable on conversion of this Note shall be increased in proportion to
such increase in the aggregate number of shares of Common Stock outstanding and
those issuable with respect to such Common Stock Equivalents.

        (b) If the number of shares of Common Stock outstanding at any time
after the date of this Note is decreased by a combination of the outstanding
shares of Common Stock, then, following the record date of such combination, the
Conversion Price shall be appropriately increased so that the number of shares
of Common Stock issuable upon conversion of this Note shall be decreased in
proportion to such decrease in outstanding shares.

        (c) In the event the Company, at any time while all or any portion of
this Note is outstanding, shall be consolidated with or merged into any other
corporation or corporations or shall sell or lease all or substantially all of
its property and business as an entirety, then lawful provisions shall be made
as part of the terms of such consolidation, merger, sale or lease so that the
holder of this Note may thereafter receive in lieu of such Common Stock
otherwise issuable to such holder upon conversion of this Note, but at the
conversion rate which would otherwise be in effect at the time of conversion, as
hereinbefore provided, the same kind and amount of securities or assets as may
be issuable, distributable or payable upon such consolidation, merger, sale or
lease with respect to Common Stock of the Company.

        7. RESERVATION OF SHARES. The Company shall at all times reserve and
keep available out of its authorized but unissued shares of Common Stock, solely
for the purpose of effecting the conversion of this Note, such number of its
shares of Common Stock as shall from time to time be sufficient to effect the
conversion of all of the outstanding principal amount, and if at any time the
number of authorized but unissued shares of Common Stock shall not be sufficient
to effect the conversion of this Note, in addition to such other remedies as
shall be available to Holder, the Company will take such corporate action as
may, in the opinion of its counsel, be necessary to increase the number of
authorized but unissued shares of Common Stock to such number of shares as shall
be sufficient for such purposes, including without limitation, using its best
efforts to obtain the requisite stockholder approval necessary to increase the
number of authorized shares of the Company's Common Stock.

        8. NOTE HOLDER NOT DEEMED A STOCKHOLDER. No Holder, as such, of this
Note shall

                                       6
<PAGE>

be entitled (prior to conversion of this Note into Common Stock, and only then
to the extent of such conversion) to vote or receive dividends or be deemed the
holder of shares of the Company for any purpose, nor shall anything contained in
this Note be construed to confer upon the Holder hereof, as such, any of the
rights of a stockholder of the Company or any right to vote, give or withhold
consent to any corporate action (whether any reorganization, issue of stock,
reclassification of stock, consolidation, merger, conveyance or otherwise),
receive notice of meetings, receive dividends or subscription rights, or
otherwise, prior to the issuance to the holder of this Note of the Conversion
Shares which he or she is then entitled to receive upon the due conversion of
all or a portion of this Note. Notwithstanding the foregoing, the Company will
provide the Holder with copies of the same notices and other information given
to the stockholders of the Company generally, contemporaneously with the giving
thereof to the stockholders.

        9. NO LIMITATION ON CORPORATE ACTION. No provisions of this Note and no
right or option granted or conferred hereunder shall in any way limit, affect or
abridge the exercise by the Company of any of its corporate rights or powers to
recapitalize, amend its Certificate of Incorporation, reorganize, consolidate or
merge with or into another corporation, or to transfer all or any part of its
property or assets, or the exercise of any other of its corporate rights and
powers.

        10. REPRESENTATIONS OF HOLDER. Upon conversion of all or a portion of
this Note, the Holder shall confirm in writing, in a form reasonably
satisfactory to the Company, that the Conversion Shares so purchased are
being acquired solely for the Holder's own account and not as a nominee for
any other party, and that such Holder is an Accredited Investor (as defined
in Rule 501(a) of Regulation D promulgated under the 1933 Act). The Company
acknowledges that Holder's duly executed certification on the Notice of
Conversion is satisfactory confirmation of the facts set forth in the
immediately preceding sentence. If such Holder cannot make such
representations because they would be factually incorrect, it shall be a
condition to such Holder's conversion of all or a portion of the Note that
the Company receive such other representations as the Company considers
reasonably necessary to assure the Company that the issuance of its
securities upon conversion of the Note shall not violate any United States or
state securities laws.

        11. WAIVER OF DEMAND, PRESENTMENT, ETC. The Company hereby expressly
waives demand and presentment for payment, notice of nonpayment, protest, notice
of protest, notice of dishonor, notice of acceleration or intent to accelerate,
bringing of suit and diligence in taking any action to collect amounts called
for hereunder and shall be directly and primarily liable for the payment of all
sums owing and to be owing hereunder, regardless of and without any notice,
diligence, act or omission as or with respect to the collection of any amount
called for hereunder.

        12. ATTORNEY'S FEES. The Company agrees to pay all costs and expenses,
including without limitation reasonable attorney's fees, which may be incurred
by the Holder in collecting any amount due under this Note or in enforcing any
of Holder's conversion rights as described herein.

        13. DEFAULT. If one or more of the following described "Events of
Default" shall

                                       7
<PAGE>

occur:

        (a)     The Company shall continue in default in the payment of
        principal or interest on this Note for a period of ten (10) days after a
        notice of default is received by the Company with respect to any such
        payment, or the Company shall not timely honor any Notice of Conversion
        as specified herein and in the Securities Purchase Agreement; or

        (b)     Any of the representations or warranties made by the Company
        herein, in the Securities Purchase Agreement, the Registration Rights
        Agreement, or in any certificate or financial or other written statement
        heretofore or hereafter furnished by or on behalf of the Company in
        connection with the execution and delivery of this Note or the
        Securities Purchase Agreement or the Registration Rights Agreement shall
        be false or misleading in any material respect at the time made and the
        Holder shall have provided seven (7) days prior written notice to the
        Company of the alleged misrepresentation or breach of warranty and the
        same shall continue uncured for a period of seven (7) days after such
        written notice from the Holder; or

        (c)     The Company shall fail to perform or observe, in any material
        respect, any other covenant, term, provision, condition, agreement or
        obligation of the Company under this Note or the Securities Purchase
        Agreement and such failure shall continue uncured for a period of seven
        (7) days after written notice from the Holder of such failure; or

        (d)     The Company shall either: (i) become insolvent; (ii) admit in
        writing its inability to pay its debts generally or as they become due;
        (iii) make an assignment for the benefit of creditors or commence
        proceedings for its dissolution; or (iv) apply for, or consent to the
        appointment of, a trustee, liquidator, or receiver for its or for a
        substantial part of its property or business; or

        (e)     A trustee, liquidator or receiver shall be appointed for the
        Company or for a substantial part of its property or business without
        the Company's consent and such appointment is not discharged within
        sixty (60) days after such appointment; or

        (f)     Any governmental agency or any court of competent jurisdiction
        at the instance of any governmental agency shall assume custody or
        control of the whole or any substantial portion of the properties or
        assets of the Company and shall not be dismissed within sixty (60) days
        thereafter; or

        (g)     Any money judgment, writ or Note of attachment, or similar
        process in excess of Two Hundred Thousand United States Dollars
        (US$200,000.00) in the aggregate shall be entered or filed against the
        Company or any of its properties or assets and shall remain unpaid,
        unvacated, unbonded or unstayed for a period of fifteen (15) days or in
        any event later than five (5) days prior to the date of any proposed
        sale thereunder; or

                                       8
<PAGE>

        (h)     Bankruptcy, reorganization, insolvency or liquidation
        proceedings or other proceedings for relief under any bankruptcy law or
        any law for the relief of debtors shall be instituted by or against the
        Company and, if instituted against the Company, shall not be dismissed
        within sixty days after such institution or the Company shall by any
        action or answer approve of, consent to, or acquiesce in any such
        proceedings or admit the material allegations of, or default in
        answering a petition filed in, any such proceeding; or

        (i)     The Company shall have its Common Stock delisted from the OTC
        BULLETIN BOARD Market or suspended from trading thereon, and shall not
        have its Common Stock relisted on the same or another national
        securities exchange (other than the National Quotation Bureau, Inc.,
        "pink sheets" market), or have such suspension lifted, as the case may
        be, within ninety days after such delisting or suspension; or

        (j)     The Company shall have received a notice of default on the
        payment of any debt(s) aggregating in excess of Two Hundred Thousand
        United States Dollars (US$200,000.00) beyond any applicable grace
        period;

then, or at any time thereafter, and in any and every such case, unless such
Event of Default shall have been waived in writing by the Holder (which waiver
in one instance shall not be deemed to be a waiver in another instance or for
any other prior or subsequent Event of Default) at the option of the Holder and
in the Holder's sole discretion, the Holder may immediately accelerate the
maturity hereof, whereupon all principal and interest hereunder shall be
immediately due and payable, without presentment, demand, protest or notice of
any kind, all of which are hereby expressly waived by the Company, anything
herein or in any Note or other instrument contained to the contrary
notwithstanding, and the Holder may immediately, and upon the expiration of any
period of grace, enforce any and all of the Holder's rights and remedies
provided herein or any other rights or remedies afforded by law or equity.

        14. NOTE A GENERAL UNSECURED OBLIGATION OF THE COMPANY. This Note
represents a general unsecured obligation of the Company. No recourse shall be
had for the payment of the principal of, or the interest on, this Note, or for
any claim based thereon, or otherwise in respect hereof, against any
incorporator, shareholder, officer, director, or agent of the Company or any
successor corporation, whether by virtue of any constitution, statute or rule of
law, or by the enforcement of any assessment or penalty or otherwise, all such
liability being, by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released.

        15. ENFORCEABILITY. In case any provision of this Note is held by a
court of competent jurisdiction to be excessive in scope or otherwise invalid or
unenforceable, such provision shall be adjusted rather than voided, if possible,
so that it is enforceable to the maximum extent possible, and the validity and
enforceability of the remaining provisions of this Note will not in any way be
affected or impaired thereby.

                                       9
<PAGE>

        16. ENTIRE AGREEMENT. This Note and Exhibit I attached hereto, the
Securities Purchase Agreement and the Exhibits attached thereto and the
Registration Rights Agreement and the Exhibits attached thereto (if any)
constitute the full and entire understanding between the Company and the Holder
with respect to the subject matter hereof and thereof. Neither this Note nor any
term hereof may be amended, waived, discharged or terminated other than by a
written instrument signed by the Company and the Holder.

        17. GOVERNING LAW. This Note shall be governed by and construed in
accordance with the laws of the state of Delaware without giving effect to
applicable principles of conflict of law.

        18. HEADINGS. Headings in this Note are for convenience only, and shall
not be used in the construction of this Note.

        IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed by an officer thereunto duly authorized, all as of the date first
hereinabove written.

                              NURESCELL INC.

                              By:  ______________________________________
                                     Mr. Adrian A. Joseph, CEO

                                       10
<PAGE>

                                    EXHIBIT I

                                     NOTICE OF CONVERSION

                                     (To Be Executed by the Registered Holder in
Order to Convert the Note)

        The Undersigned hereby irrevocably elects to convert $    of the Eight
Percent (8%) Convertible Note Due December 1, 2001, No. 01, into shares of
Common Stock of Nurescell Inc. (the "Company"), according to the terms and
conditions set forth in such Note, as of the date written below. If securities
are to be issued to a person other than the Undersigned, the Undersigned agrees
to pay all applicable transfer taxes with respect thereto.

        The Undersigned represents that it, as of this date, is an "accredited
investor" as such term is defined in Rule 501(a) of Regulation D promulgated by
the SEC under the 1933 Act.

        The Undersigned also represents that the Conversion Shares are being
acquired for the Holder's own account and not as a nominee for any other party.
The Undersigned represents and warrants that all offers and sales by the
Undersigned of the Conversion Shares shall be made pursuant to registration of
the same under the 1933 Act, or pursuant to an exemption from registration under
the 1933 Act. The Undersigned acknowledges that the Conversion Shares shall if
(and only if) required by law contain the legend contained on page 1 of the
Note.

Conversion Date:* _____________________

Applicable Conversion Price: ______________________________

Holder (Print True Legal Name): ______________________________________

-------------------------------------------------------
(Signature of Duly Authorized Representative of Holder)

Address of Holder:_____________________________________

                  _____________________________________

                  _____________________________________

* This original Notice of Conversion must be received by the Company by the
second business day following the Conversion Date.

                                       11

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