Document:

EXHIBIT 4.1

                                 CERTIFICATE OF
                      DESIGNATIONS, PREFERENCES, AND RIGHTS

                                       of

                      SERIES P CONVERTIBLE PREFERRED STOCK

                                       of

                                  EGLOBE, INC.

                         (Pursuant to Section 151 of the
                                Delaware General Corporation Law)

                  eGlobe,  Inc., a corporation  organized and existing under the
Delaware General Corporation Law (the "Corporation"),  hereby certifies that the
following  resolutions  were adopted by the Executive  Committee of the Board of
Directors of the  Corporation on January 25, 2000 pursuant to authority  granted
by the Board of Directors of the  Corporation  as required by Section  151(g) of
the Delaware General Corporation Law:

                  RESOLVED, that pursuant to the authority granted to and vested
in the Board of Directors of this  Corporation (the " Board of Directors" or the
"Board") in accordance with the provisions of its Certificate of  Incorporation,
the  Board  of  Directors  hereby  authorizes  a  series  of  the  Corporation's
previously authorized Preferred Stock, par value $.001 per share (the "Preferred
Stock"),  and hereby states the designation and number of shares,  and fixes the
relative rights,  preferences,  privileges,  powers and restrictions  thereof as
follows:

                  Series P Convertible Preferred Stock:

                            I. DESIGNATION AND AMOUNT
                            -------------------------

The  designation  of this series,  which  consists of 15,000 shares of Preferred
Stock, is Series P Convertible  Preferred Stock (the "Series P Preferred Stock")
and the stated  value  shall be One  Thousand  Dollars  ($1,000)  per share (the
"Stated Value").

                                    II. RANK
                                    --------

                  The  Series P  Preferred  Stock  shall  rank (i)  prior to the
Corporation's common stock, par value $.001 per share (the "Common Stock"); (ii)
prior to the Series F  Convertible  Preferred  Stock,  the Series H  Convertible
Preferred  Stock,  the  Series I  Convertible  Preferred  Stock and the Series L
Convertible Preferred Stock; (iii) prior to any class or series of capital stock
of the Corporation hereafter created (unless, with the consent of the holders of
Series P Preferred  Stock  obtained in  accordance  with Article X hereof,  such
class or series of capital stock specifically,  by its terms, ranks senior to or
pari passu  with the Series P  Preferred  Stock)  (collectively  with the Common
Stock,  the Series F  Convertible  Preferred  Stock,  the  Series H  Convertible
Preferred  Stock,  the  Series I  Convertible  Preferred  Stock and the Series L
Convertible  Preferred  Stock,  "Junior  Securities");  (iv) pari passu with any
class or series of capital stock of the Corporation  hereafter created (with the
consent of the holders of Series P Preferred  Stock obtained in accordance  with
Article X hereof) specifically  ranking, by its terms, on parity with the Series
P  Preferred  Stock  ("Pari  Passu  Securities");  (v) junior to the 8% Series E
Cumulative  Convertible  Redeemable  Preferred Stock, the 5% Series J Cumulative
Convertible  Preferred Stock, the 5% Series K Cumulative  Convertible  Preferred
Stock,  the  Series M  Cumulative  Convertible  Preferred  Stock,  the  Series N
Cumulative   Convertible  Preferred  Stock  and  the  10%  Series  O  Cumulative
Convertible  Preferred  Stock; and (vi) junior to any class or series of capital
stock of the Corporation  hereafter  created (with the consent of the holders of
Series  P  Preferred  Stock  obtained  in  accordance  with  Article  X  hereof)
specifically  ranking,  by its  terms,  senior to the Series P  Preferred  Stock
(collectively with the 8% Series E Cumulative  Convertible  Redeemable Preferred
Stock, the 5% Series J Cumulative  Convertible  Preferred Stock, the 5% Series K
Cumulative  Convertible  Preferred  Stock,  the Series M Cumulative  Convertible
Preferred Stock, the Series N Cumulative Convertible Preferred Stock and the 10%

<PAGE>

Series O Cumulative  Convertible Preferred Stock, "Senior Securities"),  in each
case as to distribution of assets upon liquidation, dissolution or winding up of
the Corporation, whether voluntary or involuntary.

                                 III. DIVIDENDS
                                 --------------

                  The Series P Preferred Stock shall not bear any dividends.  In
no event,  so long as any Series P  Preferred  Stock shall  remain  outstanding,
shall  any  dividend  whatsoever  be  declared  or  paid  upon,  nor  shall  any
distribution be made upon, any Junior Securities, nor shall any shares of Junior
Securities be purchased or redeemed by the  Corporation  nor shall any moneys be
paid to or made  available  for a sinking fund for the purchase or redemption of
any Junior Securities (other than a distribution of Junior Securities), without,
in each such  case,  the  written  consent of the  holders of a majority  of the
outstanding shares of Series P Preferred Stock, voting together as a class.

                           IV. LIQUIDATION PREFERENCE
                           --------------------------

                  A.  Liquidation  Event.  If the  Corporation  shall commence a
voluntary case under the Federal bankruptcy laws or any other applicable Federal
or State  bankruptcy,  insolvency  or similar law, or consent to the entry of an
order for relief in an involuntary case under any law or to the appointment of a
receiver,  liquidator,  assignee,  custodian,  trustee,  sequestrator  (or other
similar official) of the Corporation 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  Corporation  shall be entered by a court  having
jurisdiction in the premises in an involuntary case under the Federal bankruptcy
laws or any other applicable Federal or state bankruptcy,  insolvency or similar
law resulting in the appointment of a receiver, liquidator, assignee, custodian,
trustee,  sequestrator (or other similar  official) of the Corporation or of any
substantial  part of its property,  or ordering the winding up or liquidation of
its affairs,  and any such decree or order shall be unstayed and in effect for a
period of thirty (30)  consecutive  days and, on account of any such event,  the
Corporation  shall liquidate,  dissolve or wind up, or if the Corporation  shall
otherwise  liquidate,  dissolve or wind up (each such event being  considered  a
"Liquidation Event"), no distribution shall be made to the holders of any shares
of  capital  stock  of the  Corporation  (other  than  Senior  Securities)  upon
liquidation,  dissolution  or winding up unless  prior  thereto,  the holders of
shares of Series P Preferred  Stock,  subject to Article VI, shall have received
the  Liquidation  Preference  (as defined in Article  IV.C) with respect to each
share.  If upon the  occurrence  of a  Liquidation  Event,  the assets and funds
available for distribution among the holders of the Series P Preferred Stock and
holders of Pari Passu Securities  (including any dividends or distribution  paid
on any Pari Passu  Securities  after the date of filing of this  Certificate  of
Designation)  shall be insufficient to permit the payment to such holders of the
preferential  amounts payable  thereon,  then the entire assets and funds of the
Corporation  legally  available for distribution to the Series P Preferred Stock
and the Pari Passu Securities shall be distributed  ratably among such shares in
proportion  to the ratio that the  Liquidation  Preference  payable on each such
share bears to the aggregate liquidation  preference payable on all such shares.
Any  prior  dividends  or  distribution  made  after  the date of filing of this
Certificate of Designation shall offset,  dollar for dollar,  the amount payable
to the class or series to which such distribution was made.

<PAGE>

                  B. Certain Acts Deemed Liquidation Event. At the option of any
holder of Series P Preferred Stock,  the sale,  conveyance or disposition of all
or substantially  all of the assets of the Corporation,  the effectuation by the
Corporation  of a transaction  or series of related  transactions  in which more
than  50% of the  voting  power  of  the  Corporation  is  disposed  of,  or the
consolidation,  merger or other business  combination of the Corporation with or
into any other Person (as defined below) or Persons when the  Corporation is not
the  survivor  (other  than  in  connection  with  the  Corporation's   proposed
acquisition   of  Trans  Global   Communications,   Inc.   (the  "Trans   Global
Acquisition"))  shall either: (i) be deemed to be a liquidation,  dissolution or
winding  up of the  Corporation  pursuant  to  which  the  Corporation  shall be
required  to  distribute  upon  consummation  of  and  as a  condition  to  such
transaction an amount equal to 120% of the  Liquidation  Preference with respect
to each  outstanding  share of Series P  Preferred  Stock or (ii) to the  extent
applicable,  be treated pursuant to Article VI.C(b) hereof.  "Person" shall mean
any   individual,   corporation,   limited   liability   company,   partnership,
association, trust or other entity or organization.

                  C.   Liquidation   Preference.   For  purposes   hereof,   the
"Liquidation Preference" with respect to a share of the Series P Preferred Stock
shall mean an amount equal to the sum of (i) the Stated Value  thereof plus (ii)
an amount  equal to five  percent  (5%) per annum of such  Stated  Value for the
period  beginning  on the date of issuance of the Series P Preferred  Stock (the
"Issue Date") and ending on the date of final distribution to the holder thereof
(prorated  for any portion of such  period)  plus (iii) all  Conversion  Default
Payments  (as defined in Article  VI.E  below),  Delivery  Default  Payments (as
defined in Article  VI.D(b)  below) and any other  amounts  owed to such  holder
pursuant to Section 2(c) of the Registration  Rights Agreement.  The liquidation
preference  with respect to any Pari Passu  Securities  shall be as set forth in
the Certificate of Designation filed in respect thereof.

                                  V. REDEMPTION
                                  -------------

                  A. Mandatory Redemption. If any of the following events (each,
a "Mandatory Redemption Event") shall occur:

                     (i)  The  Corporation  (a) fails to issue  shares of Common
Stock to the holders of Series P Preferred Stock upon exercise by the holders of
their  conversion  rights in accordance  with the terms of this  Certificate  of
Designation  (for a period of at least sixty (60) days if such failure is solely
as a result of the  circumstances  governed by the second  paragraph  of Article
VI.E  below  and the  Corporation  is using  its best  efforts  to  authorize  a
sufficient  number of shares of Common Stock as soon as practicable),  (b) fails
to transfer or to cause its  transfer  agent to transfer  (electronically  or in
certificated  form) any  certificate  for shares of Common  Stock  issued to the
holders upon  conversion of the Series P Preferred Stock as and when required by
this Certificate of Designation or the Registration  Rights Agreement,  dated as
of January 26,  2000,  by and among the  Corporation  and the other  signatories
thereto  (the  "Registration  Rights  Agreement"),   (c)  fails  to  remove  any
restrictive  legend (or to withdraw any stop  transfer  instructions  in respect
thereof) on any  certificate or any shares of Common Stock issued to the holders
of Series P Preferred  Stock upon  conversion of the Series P Preferred Stock as
and when required by this  Certificate of Designation,  the Securities  Purchase
Agreement  dated as of January 26, 2000, by and between the  Corporation and the
other signatories thereto (the "Purchase  Agreement") or the Registration Rights
Agreement,  or (d) fails to fulfill its  obligations  pursuant to Sections 4(c),
4(e),  4(h),  4(j) or 5 of the Purchase  Agreement  (or makes any  announcement,
statement or threat that it does not intend to honor the  obligations  described
in  this  paragraph)  and  any  such  failure  shall  continue  uncured  (or any
announcement,  statement  or threat  not to honor its  obligations  shall not be
rescinded in writing) for ten (10)  business  days after the  Corporation  shall
have been notified thereof in writing by any holder of Series P Preferred Stock;

<PAGE>

                     (ii) The Corporation fails to obtain effectiveness with the
Securities and Exchange  Commission  (the "SEC"),  prior to July 15, 2000 of the
Registration  Statement (as defined in the Registration  Rights  Agreement,  the
"Registration  Statement")  required to be filed pursuant to Section 2(a) of the
Registration  Rights  Agreement,  or fails to obtain  the  effectiveness  of any
additional Registration Statement (required to be filed pursuant to Section 3(b)
of  the  Registration  Rights  Agreement)  within  sixty  (60)  days  after  the
Registration Trigger Date (as defined in the Registration Rights Agreement),  or
any such Registration Statement,  after its initial effectiveness and during the
Registration Period (as defined in the Registration Rights Agreement), lapses in
effect  or  sales  of all of  the  Registrable  Securities  (as  defined  in the
Registration Rights Agreement, the "Registrable Securities") otherwise cannot be
made  thereunder  (whether  by reason of the  Corporation's  failure to amend or
supplement the prospectus  included  therein in accordance with the Registration
Rights  Agreement,  the Corporation's  failure to file and obtain  effectiveness
with  the SEC of an  additional  Registration  Statement  required  to be  filed
pursuant to Section 3(b) of the Registration  Rights Agreement or otherwise) for
more than forty-five (45)  consecutive days or more than ninety (90) days in any
twelve (12) month period after such Registration Statement becomes effective;

                     (iii) The  Corporation or any subsidiary of the Corporation
shall make an assignment  for the benefit of creditors,  or apply for or consent
to the  appointment of a receiver or trustee for it or for all or  substantially
all of its property or business;  or such a receiver or trustee shall  otherwise
be appointed;

                     (iv) Bankruptcy, insolvency,  reorganization 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  Corporation  or
any subsidiary of the Corporation;

                     (v) The  Corporation  shall fail to maintain the listing of
the Common Stock on the Nasdaq National Market  ("Nasdaq"),  the Nasdaq SmallCap
Market ("Nasdaq SmallCap"), the New York Stock Exchange ("NYSE") or the American
Stock Exchange ("AMEX"),

then,  upon  the  occurrence  and  during  the  continuation  of  any  Mandatory
Redemption Event specified in  subparagraphs  (i), (ii) or (v), at the option of
the holders of at least 50% of the then outstanding shares of Series P Preferred
Stock  exercisable  by delivery of written  notice  (the  "Mandatory  Redemption
Notice") to the  Corporation of such  Mandatory  Redemption  Event,  or upon the
occurrence of any Mandatory Redemption Event specified in subparagraphs (iii) or
(iv),  the then  outstanding  shares of Series P Preferred  Stock  shall  become
immediately   redeemable  and  the  Corporation  shall  purchase  each  holder's
outstanding  shares of Series P Preferred Stock for an amount per share equal to
the  greater of (1) 120%  multiplied  by the sum of (a) the Stated  Value of the
shares to be redeemed plus (b) an amount equal to five percent (5%) per annum of
such Stated  Value for the period  beginning on the Issue Date and ending on the
date of payment of the Mandatory  Redemption  Amount (the "Mandatory  Redemption
Date ") plus (c) all  Conversion  Default  Payments  (as defined in Article VI.E
below),  Delivery  Default  Payments  (as defined in Article VI.D below) and any
other amounts owed to such holder  pursuant to Section 2(c) of the  Registration
Rights Agreement, and (2) the "parity value" of the shares to be redeemed, where
parity  value means the  product of (a) the  highest  number of shares of Common
Stock  issuable upon  conversion  of such shares of Series P Preferred  Stock in
accordance  with Article VI below (without  giving any effect to any limitations
on  conversions  of shares  contained  herein,  and treating the Trading Day (as
defined in Article VI.B(a)) immediately  preceding the Mandatory Redemption Date

<PAGE>

as the  "Conversion  Date" (as  defined  in Article  VI.D(d))  for  purposes  of
determining  the  lowest  applicable  Conversion  Price,  unless  the  Mandatory
Redemption  Event  arises  as a result  of a breach  in  respect  of a  specific
Conversion  Date in which  case such  Conversion  Date  shall be the  Conversion
Date),  multiplied by (b) the highest  Closing Price (as defined  below) for the
Common Stock during the period  beginning on the date of first occurrence of the
Mandatory  Redemption Event and ending one day prior to the Mandatory Redemption
Date (the greater of such amounts being referred to as the "Mandatory Redemption
Amount ").  "Closing  Price,"  as of any date,  means the last sale price of the
Common  Stock on  Nasdaq  as  reported  by  Bloomberg  Financial  Markets  or an
equivalent  reliable  reporting  service  mutually  acceptable  to and hereafter
designated  by the  holders of a majority  in interest of the shares of Series P
Preferred  Stock  and the  Corporation  ("Bloomberg")  or,  if Nasdaq is not the
principal trading market for such security, the last sale price of such security
on the principal  securities  exchange or trading  market where such security is
listed or traded as reported by Bloomberg, or if the foregoing do not apply, the
last  sale  price  of  such  security  in  the  over-the-counter  market  on the
electronic bulletin board for such security as reported by Bloomberg,  or, if no
last sale price of such security is available in the over-the-counter  market on
the  electronic  bulletin  board for such  security  or in any of the  foregoing
manners,  the average of the bid prices of any market  makers for such  security
that are listed in the "pink sheets" by the National  Quotation Bureau,  Inc. If
the Closing  Price cannot be  calculated  for such  security on such date in the
manner  provided  above,  the Closing  Price  shall be the fair market  value as
mutually determined by the Corporation and the holders of a majority in interest
of shares of Series P Preferred  Stock for which the  calculation of the Closing
Price is required.

                  B. Trading Market Redemption.  If the Series P Preferred Stock
ceases to be convertible by any holder as a result of the limitations  described
in  Article  VI.A(d)  below  (a  "Trading  Market  Redemption  Event"),  and the
Corporation has not, prior to, or within thirty (30) days of, the date that such
Trading Market Redemption Event arises, (i) delivered the Share Limit Waiver (as
defined  in Article  VI.A(c))  (to the extent  not  already  given) and  (ii)(A)
obtained  the  Stockholder  Approval  (as  defined  in Article  VI.A(d))  or (B)
eliminated any prohibitions  under applicable law or the rules or regulations of
any  stock  exchange,  interdealer  quotation  system  or other  self-regulatory
organization  with jurisdiction over the Corporation or any of its securities on
the  Corporation's  ability  to issue  shares of  Common  Stock in excess of the
Maximum Share Amount (as defined in Article VI.A(d)), then the Corporation shall
be  obligated  to  redeem  immediately  all of the  then  outstanding  Series  P
Preferred  Stock,  in  accordance  with this  Article  V.B.  In such  event,  an
irrevocable  redemption notice (the "Trading Market Redemption Notice") shall be
delivered  promptly  to the  holders  of  Series  P  Preferred  Stock  at  their
registered  address  appearing on the records of the Corporation and shall state
(i) that the Maximum Share Amount has been issued upon  conversion of the Series
P Preferred  Stock,  (ii) that the Corporation is obligated to redeem all of the
outstanding  Series P Preferred  Stock and (iii) the Trading  Market  Redemption
Date, which shall be a date (the "Trading Market  Redemption  Date") within five
(5)  business  days  of the  earlier  of (a)  the  date  of the  Trading  Market
Redemption  Notice  and (b) the  date on  which  the  holders  of the  Series  P
Preferred  Stock notify the  Corporation  of the  occurrence of a Trading Market
Redemption  Event. On the Trading Market  Redemption Date, the Corporation shall
purchase each  holder's  outstanding  shares of Series P Preferred  Stock for an
amount  per share  equal to the  Liquidation  Preference  (the  "Cap  Redemption
Amount").

<PAGE>

                  C. Cap  Amount  Redemption.  If the Series P  Preferred  Stock
ceases to be convertible by any holder as a result of the Cap Amount (as defined
in Article VI.A(c)) being reached (a " Cap Amount  Redemption  Event"),  and the
Corporation  has not,  prior to, or within one hundred eighty (180) days of, the
date that such Cap Amount  Redemption  Event  arises,  (1) if the sum of (A) the
aggregate number of shares of Common Stock previously  issued upon conversion of
the Series P Preferred  Stock and (B) the number of shares of Common  Stock that
remain issuable upon full conversion of the then outstanding  Series P Preferred
Stock at the  Conversion  Price  then in effect  (without  giving  effect to any
limitations  on conversion  contained in Article VI hereof)  exceeds the Maximum
Share  Amount (as defined in Article  VI.A(d)) on any date prior to the delivery
of the Share Limit Waiver (as defined in Article  VI.A(c)),  either (i) obtained
the Stockholder  Approval (as defined in Article VI.A(d)) or (ii) eliminated any
prohibitions  under  applicable  law or the  rules or  regulations  of any stock
exchange,  interdealer  quotation system or other  self-regulatory  organization
with  jurisdiction  over  the  Corporation  or  any  of  its  securities  on the
Corporation's  ability to issue  shares of Common Stock in excess of the Maximum
Share Amount (as defined in Article  VI.A(d)),  and (2) delivered to the holders
of the Series P Preferred Stock a Share Limit Waiver (as defined in Article VI.A
(c)) (provided that the Share Limit Waiver may not,  without the written consent
of the  holders  of at least  50% of the then  outstanding  shares  of  Series P
Preferred Stock, be delivered by the Corporation after the one hundred eightieth
(180th) day  immediately  preceding the Automatic  Conversion Date (as described
below) and, provided, further that in no event shall the Corporation be entitled
to  deliver a Share  Limit  Waiver  unless  all of the  shares  of Common  Stock
issuable  in  excess of the Cap  Amount  are (x)  authorized  and  reserved  for
issuance,  (y)  registered  for re-sale  under the  Securities  Act of 1933,  as
amended (the "1933 Act") by the holders of the Series P Preferred  Stock (or may
otherwise be resold publicly without  restriction) and (z) eligible to be traded
on Nasdaq, the NYSE, the AMEX or Nasdaq SmallCap), then the Corporation shall be
obligated to redeem  immediately all of the then outstanding  Series P Preferred
Stock,  in  accordance  with this  Article  V.C. In such event,  an  irrevocable
redemption  notice  (the "Cap  Amount  Redemption  Notice ") shall be  delivered
promptly to the holders of Series P Preferred Stock at their registered  address
appearing  on the  records of the  Corporation  and shall state (i) that the Cap
Amount (as defined in Article  VI.A(c)) has been issued upon  conversion  of the
Series P Preferred  Stock,  (ii) that the Corporation is obligated to redeem all
of the outstanding  Series P Preferred Stock and (iii) the Cap Amount Redemption
Date,  which shall be on the earlier of (a) one hundred  eighty  (180) days from
the date of the Cap Amount  Redemption  Event and (b) the  Automatic  Conversion
Date (the earlier of such dates being  hereafter  referred to as the "Cap Amount
Redemption  Date ").  Solely for purposes of this Article  V.C.,  the  Automatic
Conversion  Date shall be January 26, 2003 and shall not be subject to extension
as provided in Article VII hereof without the written  consent of the holders of
at  least  50% of the then  outstanding  shares  of  Series  P  Preferred  Stock
delivered  to the  Corporation  prior to  January  26,  2003.  On the Cap Amount
Redemption Date, the Corporation shall make payment of the Cap Redemption Amount
(as defined in Article V.B above) in cash.

                  D.  Failure  to Pay  Redemption  Amounts.  Subject  to Article
VI.A(d),  in the case of a Mandatory  Redemption  Event or the delivery of a Cap
Amount  Redemption  Notice,  if  the  Corporation  fails  to pay  the  Mandatory
Redemption Amount or the Cap Redemption  Amount, as applicable,  within five (5)
business  days of  written  notice  that such  amount is due and  payable,  then
(assuming  there are  sufficient  authorized  shares) in  addition  to all other
available remedies, each holder of Series P Preferred Stock shall have the right
at any time, so long as the Mandatory Redemption Event continues, or at any time
after the Cap Amount  Redemption Date, to require the Corporation,  upon written
notice,  to immediately  issue at any time or from time to time until payment of
the Mandatory Redemption Amount or the Cap Redemption Amount is received by such
holder (in  accordance  with and  subject to the terms of Article VI below),  in
lieu of the  Mandatory  Redemption  Amount  or the  Cap  Redemption  Amount,  as
applicable,  the number of shares of Common  Stock of the  Corporation  equal to
such applicable  redemption  amount divided by any Conversion  Price (as defined
below),  as chosen in the sole  discretion  of the holder of Series P  Preferred
Stock,  in effect  from the date of the  Mandatory  Redemption  Event or the Cap
Amount  Redemption  Event, as the case may be, until the date such holder elects
to exercise its rights pursuant to this Article V.D.

<PAGE>

                   VI. CONVERSION AT THE OPTION OF THE HOLDER
                   ------------------------------------------

                  A.       Optional Conversion

                     (a) Conversion Amount. Subject to the restriction set forth
in Article VI.A(b) below, each holder of shares of Series P Preferred Stock may,
at its  option  at any  time  and  from  time to  time,  upon  surrender  of the
certificates  therefor,  convert  any or all of its shares of Series P Preferred
Stock into Common  Stock as set forth  below (an  "Optional  Conversion").  Each
share of Series P Preferred Stock shall be convertible into such number of fully
paid and nonassessable shares of Common Stock as such Common Stock exists on the
Issue Date,  or any other  shares of capital  stock or other  securities  of the
Corporation into which such Common Stock is thereafter  changed or reclassified,
as is  determined  by dividing (1) the sum of (a) the Stated Value  thereof plus
(b) the Premium Amount (as defined below), by (2) the then effective  Conversion
Price (as  defined  below);  provided,  however,  that in no event  (other  than
pursuant to the Automatic Conversion (as defined in Article VII)) shall a holder
of shares of Series P Preferred  Stock be entitled to convert any such shares in
excess  of that  number of shares  upon  conversion  of which the sum of (x) the
number of  shares  of Common  Stock  beneficially  owned by the  holder  and its
affiliates  (other than shares of Common Stock which may be deemed  beneficially
owned through the ownership of the unconverted portion of the shares of Series P
Preferred  Stock  or  the  unexercised  or  unconverted  portion  of  any  other
securities  of the  Corporation  (including,  without  limitation,  the warrants
issued by the  Corporation  pursuant to the Securities  Purchase  Agreement (the
"Warrants"))  subject to a limitation on conversion or exercise analogous to the
limitations  contained  herein)  and (y) the  number of  shares of Common  Stock
issuable  upon the  conversion  of the shares of Series P  Preferred  Stock with
respect to which the  determination  of this proviso is being made, would result
in beneficial  ownership by a holder and such  holder's  affiliates of more than
4.9% of the outstanding  shares of Common Stock.  For purposes of the proviso to
the immediately preceding sentence,  beneficial ownership shall be determined in
accordance  with  Section  13(d) of the  Securities  Exchange  Act of  1934,  as
amended, and Regulation 13D-G thereunder, except as otherwise provided in clause
(x) of such proviso. The "Premium Amount" means the product of the Stated Value,
multiplied by .05,  multiplied  by (N/365),  where "N" equals the number of days
elapsed from the Issue Date to and including the Conversion  Date (as defined in
Article VI.B).

                     (b)  Conversion  Restrictions.   No  conversions  shall  be
permitted at a  Conversion  Price (as defined in Article  VI.B(a))  that is less
than the Fixed  Conversion  Price (as  defined  in  Article  VI.B(a))  until the
expiration of three (3) months following the Issue Date; provided, however, that
such restriction  shall not apply to conversions  taking place on any Conversion
Date (i) on which the Trade  Price (as  defined  below) of the  Common  Stock is
greater  than or equal to the Fixed  Conversion  Price or (ii)  occurring  on or
after the date the Corporation  makes a public  announcement  that it intends to
merge  or   consolidate   with  any  other   corporation  or  sell  or  transfer
substantially all of the assets of the Corporation, (other than the Trans Global
Acquisition),  or (iii)  occurring  on or after  the date any  person,  group or
entity (including the Corporation) publicly announces a tender offer to purchase
50% or more of the Corporation's  Common Stock (or any other takeover scheme) or
(iv) occurring on or after the date on which there is a Material  Adverse Change
(as defined below), or (v) occurring on or after the occurrence of any Mandatory
Redemption  Event.  "Trade  Price" means,  for any security as of any date,  the
highest  reported  sale price of the Common  Stock on the Nasdaq as  reported by
Bloomberg or, if Nasdaq is not the principal  trading  market for such security,
the highest  reported sale price of such  security on the  principal  securities
exchange or trading  market where such  security is listed or traded as reported
by Bloomberg,  or if the foregoing do not apply, the highest reported sale price
of such security in the over-the-counter market on the electronic bulletin board
for such  security  as  reported  by  Bloomberg,  or,  if no sale  price of such

<PAGE>

security is available in the over-the-counter  market on the electronic bulletin
board for such security or in any of the foregoing manners, the highest reported
bid  price of any  market  maker for such  security  that is listed in the "pink
sheet" by the  National  Quotation  Bureau,  Inc. If the Trade  Price  cannot be
calculated  for such  security on such date in the manner  provided  above,  the
Trade  Price  shall  be the fair  market  value as  mutually  determined  by the
Corporation  and the  holders of a majority  in  interest  of shares of Series P
Preferred  Stock.  "Material  Adverse  Change"  means (i) the  bankruptcy of the
Corporation;  (ii) the insolvency of the  Corporation;  (iii) the receipt by the
Corporation of a "going concern" opinion from its auditors; (iv) the resignation
or dismissal by the  Corporation of its auditors  (provided,  however,  that the
replacement by the Corporation of any auditors who are not a "Big Five" auditing
firm with a "Big  Five"  auditing  firm  shall not be  deemed  to  constitute  a
"Material  Adverse  Change");  (v) the resignation or dismissal of the Chairman,
the Chief Executive Officer,  the Chief Financial Officer or the Chief Operating
Officer of the Corporation;  (vi) the receipt by the Issuer of notice of failure
to meet Nasdaq listing requirements;  or (vii) the abandonment or termination of
the Trans Global Acquisition.

                     (c)  Limitation  on Number of Shares of Common  Stock to be
Issued.  Subject to written  waiver by the  Corporation,  the maximum  number of
shares of Common  Stock to be issued upon  conversion  of the Series P Preferred
Stock shall be 5,151,871  shares (subject to adjustment for stock splits,  stock
dividends and similar events, the "Cap Amount");  provided however,  that if the
average of the  Closing  Bid Prices of the Common  Stock  during the twenty (20)
Trading Day period ending on the later of (x) June 30, 2000 and (y) the sixtieth
(60th) calendar day after the date on which the Registration  Statement is first
declared  effective  is less than the Closing  Bid Price of the Common  Stock on
January 12, 2000, the Cap Amount shall thereafter equal 5,151,871  multiplied by
the  Closing  Bid Price on January  12,  2000 and  divided by the average of the
Closing Bid Prices  during such twenty (20) Trading Day period,  but in no event
shall the Cap Amount  exceed the Maximum Share Amount.  If the  Corporation  has
issued a number of  shares  of Common  Stock  upon  conversion  of the  Series P
Preferred  Stock equal to the Cap Amount,  unless the  Corporation  has provided
written notice to the holders of the Series P Preferred Stock that it has waived
the  restrictions  contained in this Article VI.A(c) on issuing shares of Common
Stock  upon  conversion  of the  Series P  Preferred  Stock in excess of the Cap
Amount (the "Share  Limit  Waiver")  (provided  that such Share Limit Waiver may
not,  without  the  written  consent of the  holders of at least 50% of the then
outstanding  shares of Series P Preferred Stock, be delivered by the Corporation
after the 180th day  preceding  the  Automatic  Conversion  Date (as  defined in
Article  VII);  provided,  further,  that in no event shall the  Corporation  be
entitled  to  deliver a Share  Limit  Waiver  unless all of the shares of Common
Stock  issuable in excess of the Cap Amount are (x)  authorized and reserved for
issuance,  (y)  registered  for re-sale under the 1933 Act by the holders of the
Series  P  Preferred  Stock  (or  may  otherwise  be  resold  publicly   without
restriction)  and (z)  eligible  to be traded on Nasdaq,  the NYSE,  the AMEX or
Nasdaq  SmallCap and;  provided,  further,  that if the sum of (A) the aggregate
number of shares of Common Stock previously issued upon conversion of the Series
P  Preferred  Stock and (B) the  number of shares of Common  Stock  that  remain
issuable upon full conversion of the then  outstanding  Series P Preferred Stock
at the Conversion Price then in effect (without giving effect to any limitations
on conversion  contained in Article VI hereof)  exceeds the Maximum Share Amount
(as defined in Article  VI.A(d)) on any date prior to the  delivery of the Share
Limit Waiver,  the Corporation has either (i) obtained the Stockholder  Approval
(as  defined in Article  VI.A(d))  or (ii)  eliminated  any  prohibitions  under
applicable law or the rules or regulations  of any stock  exchange,  interdealer
quotation system or other  self-regulatory  organization  with jurisdiction over
the Corporation or any of its securities on the  Corporation's  ability to issue
shares of Common  Stock in excess of the  Maximum  Share  Amount (as  defined in
Article VI.A(d)), then the Corporation shall be obligated to redeem the Series P
Preferred Stock in accordance with Article V.C.

<PAGE>

                     (d)  Trading  Market  Limitation.  Unless  the  Corporation
either (i) is permitted by the applicable rules and regulations of the principal
securities  market  on which  the  Common  Stock is listed or traded or (ii) has
obtained  approval of the  issuance of the Common  Stock upon  conversion  of or
otherwise pursuant to the Series P Preferred Stock in accordance with applicable
law and the rules and regulations of any stock exchange,  interdealer  quotation
system  or  other  self-regulatory   organization  with  jurisdiction  over  the
Corporation or any of its securities (the "Stockholder  Approval"),  in no event
shall the total number of shares of Common Stock  issued upon  conversion  of or
otherwise  pursuant to the Series P  Preferred  Stock  (including  any shares of
capital  stock or  rights  to  acquire  shares of  capital  stock  issued by the
Corporation  which are aggregated or integrated  with the Common Stock issued or
issuable  upon  conversion  of or  otherwise  pursuant to the Series P Preferred
Stock for purposes of any such rule or regulation)  exceed the maximum number of
shares of Common Stock that the Corporation can so issue pursuant to any rule of
the principal United States  securities  market on which the Common Stock trades
(including  Rule  4460 of  Nasdaq  or any  successor  rule)(the  "Maximum  Share
Amount") which, as of the Issue Date,  shall be 7,157,063  shares (19.99% of the
total  shares  of  Common  Stock  outstanding  on the Issue  Date),  subject  to
equitable  adjustments  from time to time for  stock  splits,  stock  dividends,
combinations,  capital reorganizations and similar events relating to the Common
Stock  occurring  after the Issue Date.  With respect to each holder of Series P
Preferred  Stock, the Maximum Share Amount shall refer to such holder's pro rata
share thereof  determined in accordance  with Article X below. In the event that
the sum of (x) the aggregate  number of shares of Common Stock  actually  issued
upon conversion of or otherwise  pursuant to the outstanding  Series P Preferred
Stock  plus (y) the  aggregate  number of shares of  Common  Stock  that  remain
issuable  upon  conversion  of or  otherwise  pursuant to the Series P Preferred
Stock at the then effective  Conversion  Price,  represents at least one hundred
percent  (100%) of the  Maximum  Share  Amount  (the  "Triggering  Event"),  the
Corporation  will use its best efforts to seek and obtain  Stockholder  Approval
(or obtain such other  relief as will allow  conversions  hereunder in excess of
the Maximum Share Amount) as soon as practicable following the Triggering Event.

                  B.       Conversion Price.

                     (a)   Calculation   of   Conversion   Price.   Subject   to
subparagraph  (b)  below,  the  "Conversion  Price"  shall be the  lesser of the
Variable Conversion Price (as defined herein) and the Fixed Conversion Price (as
defined  herein),  subject to adjustments  pursuant to the provisions of Article
VI.C below.  The  "Variable  Conversion  Price"  shall mean the Market Price (as
defined below).  "Market Price" shall mean the average of the Closing Bid Prices
for any five (5) consecutive Trading Days (the "Market Price Days"),  during the
twenty-two  (22) Trading Day period ending one (1) Trading Day prior to the date
the Notice of Conversion (as defined in Article VI.D) is sent by a holder to the
Corporation via facsimile (the "Pricing Period"). The Market Price Days shall be
designated by the converting  holder (from among the days comprising the Pricing
Period) in the Notice of Conversion. "Fixed Conversion Price" shall mean $12.04.
"Closing  Bid Price"  means,  for any  security as of any date,  the closing bid
price on Nasdaq as  reported  by  Bloomberg  or, if Nasdaq is not the  principal
trading market for such security,  the closing bid price of such security on the
principal securities exchange or trading market where such security is listed or
traded as reported by Bloomberg,  or if the foregoing do not apply,  the closing
bid price of such  security  in the  over-the-counter  market on the  electronic
bulletin board for such security as reported by Bloomberg, or, if no closing bid
price of such  security  is  available  in the  over-the-counter  market  on the
electronic  bulletin board for such security or in any of the foregoing manners,
the average of the bid prices of any market  makers for such  security  that are
listed in the "pink  sheets"  by the  National  Quotation  Bureau,  Inc.  If the
Closing Bid Price  cannot be  calculated  for such  security on such date in the
manner provided  above,  the Closing Bid Price shall be the fair market value as
mutually determined by the Corporation and the holders of a majority in interest
of shares of Series P Preferred  Stock being converted for which the calculation
of the Closing Bid Price is required in order to determine the Conversion  Price
of such Series P Preferred Stock.  "Trading Day" shall mean any day on which the
Common Stock is traded for any period on Nasdaq, or on the principal  securities
exchange  or other  securities  market on which the  Common  Stock is then being
traded.

<PAGE>

                     (b)   Conversion   Price   During   Major    Announcements.
Notwithstanding  anything  contained in subparagraph (a) of this Article VI.B to
the contrary,  except in connection  with the Trans Global  Acquisition,  in the
event  the  Corporation  (i)  makes a public  announcement  that it  intends  to
consolidate  or merge with any other  corporation  (other than a merger in which
the Corporation is the surviving or continuing corporation and its capital stock
is unchanged) or sell or transfer all or substantially  all of the assets of the
Corporation  or (ii) any person,  group or entity  (including  the  Corporation)
publicly  announces a tender offer to purchase 50% or more of the  Corporation's
Common  Stock  (or any other  takeover  scheme)  (the  date of the  announcement
referred  to  in  clause  (i)  or  (ii)  is  hereinafter   referred  to  as  the
"Announcement  Date"),  then the  Conversion  Price  shall,  effective  upon the
Announcement  Date  and  continuing   through  the  Adjusted   Conversion  Price
Termination Date (as defined below),  be equal, for each such date, to the lower
of (x) the  Conversion  Price which would have been  applicable  for an Optional
Conversion  occurring on the Announcement Date and (y) the Conversion Price that
would  otherwise  be in effect.  From and after the  Adjusted  Conversion  Price
Termination  Date,  the  Conversion  Price shall be  determined  as set forth in
subparagraph (a) of this Article VI.B. For purposes hereof, "Adjusted Conversion
Price Termination Date" shall mean, with respect to any proposed  transaction or
tender  offer  (or  takeover   scheme)  for  which  a  public   announcement  as
contemplated  by this  subparagraph  (b) has been made,  the date upon which the
Corporation (in the case of clause (i) above) or the person, group or entity (in
the case of clause (ii) above) consummates or publicly announces the termination
or abandonment of the proposed  transaction or tender offer (or takeover scheme)
which caused this subparagraph (b) to become operative.

               C.    Adjustments to Conversion Price. The Conversion Price shall
be subject to adjustment from time to time as follows:

                     (a)  Adjustment  to  Conversion  Price Due to Stock  Split,
Stock Dividend,  Etc. If at any time when Series P Preferred Stock is issued and
outstanding,  the number of  outstanding  shares of Common Stock is increased or
decreased  by a stock  split,  stock  dividend,  combination,  reclassification,
rights  offering  below the Trading  Price (as defined  below) to all holders of
Common Stock or other similar  event,  which event shall have taken place during
the reference period for  determination of the Conversion Price for any Optional
Conversion  or Automatic  Conversion of the Series P Preferred  Stock,  then the
Conversion  Price shall be  calculated  giving  appropriate  effect to the stock
split, stock dividend, combination,  reclassification or other similar event. In
such event, the Corporation shall notify the Transfer Agent of such change on or
before the effective date thereof.  "Trading  Price," which shall be measured as
of the record date in respect of the rights  offering,  means (i) the average of
the last  reported  sale  prices  for the  shares of  Common  Stock on Nasdaq as
reported by Bloomberg, as applicable,  for the five (5) Trading Days immediately
preceding  such date, or (ii) if Nasdaq is not the principal  trading market for
the shares of Common Stock,  the average of the last reported sale prices on the
principal trading market for the Common Stock during the same period as reported
by  Bloomberg,  or (iii) if market value cannot be calculated as of such date on
any of the foregoing  bases, the Trading Price shall be the fair market value as
reasonably  determined  in good  faith  by (a) the  Board  of  Directors  of the
Corporation  or, (b) at the option of a  majority-in-interest  of the holders of
the outstanding  Series P Preferred  Stock by an independent  investment bank of
nationally  recognized  standing in the valuation of  businesses  similar to the
business of the Corporation.

<PAGE>

                     (b)  Adjustment Due to Merger,  Consolidation,  Etc. If, at
any time when Series P Preferred  Stock is issued and  outstanding  and prior to
the conversion of all Series P Preferred  Stock,  (i) there shall be any merger,
consolidation,  exchange of shares, recapitalization,  reorganization,  or other
similar  event,  as a result of which shares of Common Stock of the  Corporation
shall be changed into the same or a different  number of shares of another class
or classes of stock or securities of the Corporation or another entity,  or (ii)
in case of any sale or conveyance of all or  substantially  all of the assets of
the  Corporation,  in any such  case,  other than in  connection  with the Trans
Global  Acquisition or a plan of complete  liquidation of the Corporation  (each
such  event  described  in  clause  (i) and (ii)  above,  a "Change  of  Control
Transaction"),  then the  holders of Series P Preferred  Stock shall  thereafter
have the right to receive upon conversion of the Series P Preferred Stock,  upon
the basis and upon the terms and conditions  specified herein and in lieu of the
shares of Common Stock immediately  theretofore  issuable upon conversion,  such
stock,  securities or assets which the holders of Series P Preferred Stock would
have been  entitled  to receive in such  transaction  had the Series P Preferred
Stock been  converted in full  immediately  prior to such  transaction  (without
regard to any limitations on conversion  contained herein), and in any such case
appropriate provisions shall be made with respect to the rights and interests of
the holders of Series P Preferred  Stock to the end that the  provisions  hereof
(including,  without  limitation,  provisions  for  adjustment of the Conversion
Price and of the number of shares of Common Stock  issuable  upon  conversion of
the Series P Preferred Stock) shall  thereafter be applicable,  as nearly as may
be practicable in relation to any  securities or assets  thereafter  deliverable
upon the  conversion  of Series P Preferred  Stock.  The  Corporation  shall not
effect any  transaction  described  in this  subsection  (b) unless (a) it first
gives, to the extent  practical,  thirty (30) days' prior written notice (but in
any event at least  fifteen  (15)  business  days prior  written  notice) of the
record date of the special meeting of stockholders to approve, or if there is no
such record  date,  the  consummation  of,  such  Change of Control  Transaction
(during which time the holders of Series P Preferred  Stock shall be entitled to
convert  the  Series P  Preferred  Stock)  and (b) the  resulting  successor  or
acquiring entity (if not the  Corporation)  and, if an entity different from the
successor or acquiring  entity,  the entity  whose  capital  stock or assets the
holders of the Common  Stock are  entitled to receive as a result of such Change
of Control  Transaction,  assumes by written  instrument the obligations of this
Certificate of Designation  (including this subsection (b);  provided,  however,
that in the case of a merger or  consolidation  in which the  Corporation is not
the surviving entity and in which all of the outstanding shares of capital stock
of the Corporation are being acquired for or converted into the right to receive
consideration  consisting  entirely of cash,  then the  successor  or  surviving
entity (if not the Corporation) shall not be obligated to assume the obligations
under this Certificate of Designation,  except for the obligations under Article
IV.B). The above provisions shall similarly apply to successive  consolidations,
mergers, sales, transfers or share exchanges.

<PAGE>

                     (c) Adjustment Due to Distribution. Subject to Article III,
if the  Corporation  shall  declare or make any  distribution  of its assets (or
rights to acquire  its assets) to holders of Common  Stock as a dividend,  stock
repurchase,  by way of return of capital or otherwise (including any dividend or
distribution to the  Corporation's  shareholders in cash or shares (or rights to
acquire  shares)  of  capital  stock of a  subsidiary  (i.e.,  a  spin-off))  (a
"Distribution"), then the holders of Series P Preferred Stock shall be entitled,
upon any  conversion  of shares of Series P  Preferred  Stock  after the date of
record for determining  shareholders  entitled to such Distribution,  to receive
the  amount of such  assets  which  would have been  payable to the holder  with
respect to the shares of Common Stock  issuable  upon such  conversion  had such
holder been the holder of such shares of Common Stock on the record date for the
determination of shareholders entitled to such Distribution.

                     (d) Purchase Rights. Subject to Article III, if at any time
when any Series P Preferred  Stock is issued and  outstanding,  the  Corporation
issues  any  convertible  securities  or rights  to  purchase  stock,  warrants,
securities  or other  property  (the  "Purchase  Rights") pro rata to the record
holders of any class of Common  Stock,  then the  holders of Series P  Preferred
Stock will be entitled to acquire,  upon the terms  applicable  to such Purchase
Rights,  the aggregate  Purchase Rights which such holder could have acquired if
such  holder  had held the  number of shares of  Common  Stock  acquirable  upon
complete  conversion  of the Series P  Preferred  Stock  (without  regard to any
limitations on conversion contained herein) immediately before the date on which
a record is taken for the grant,  issuance or sale of such Purchase Rights,  or,
if no such  record is taken,  the date as of which the record  holders of Common
Stock are to be determined for the grant, issue or sale of such Purchase Rights.

                     (e) Adjustment for  Restricted  Periods.  In the event that
(i)  the  Corporation  fails  to  obtain  effectiveness  with  the  SEC  of  any
Registration  Statement required to be filed pursuant to the Registration Rights
Agreement  on or  prior  to the date on which  such  Registration  Statement  is
required to become effective  pursuant to the terms of the  Registration  Rights
Agreement,  (ii) any such Registration Statement after its initial effectiveness
and  during the  Registration  Period (as  defined  in the  Registration  Rights
Agreement)  lapses  in  effect,  or  sales  of all  the  Registrable  Securities
otherwise  cannot be made  thereunder,  whether  by reason of the  Corporation's
failure or inability to amend or supplement  the prospectus  (the  "Prospectus")
included  therein  in  accordance  with the  Registration  Rights  Agreement  or
otherwise,  after such  Registration  Statement  becomes  effective  (including,
without  limitation,  during an Allowed Delay (as defined in Section 3(f) of the
Registration  Rights  Agreement)),  or (iii) a Cap  Amount  Redemption  Event or
Trading Market  Redemption Event occurs (each of the events described in clauses
(i), (ii) and (iii) being referred to as an "Extended Lookback Event"), then, at
the  election  of each holder of Series P Preferred  Stock,  the Pricing  Period
shall be comprised of, (x) in the case of an event  described in clause (i), the
twenty-two  (22)  Trading  Days  preceding  the date on which such  Registration
Statement  is  required  to  become  effective  pursuant  to  the  terms  of the
Registration  Rights Agreement,  plus all Trading Days through and including the
third  (3rd)  Trading Day  following  the date of actual  effectiveness  of such
Registration  Statement,  (y) in the case of an event  described in clause (ii),
the  twenty-two  (22) Trading Days preceding the date on which the holder of the
Series P Preferred  Stock is first notified that sales may not be made under the
Prospectus,  plus all Trading Days through and including the third (3rd) Trading
Day following the date on which the Holder is first notified that such sales may
again be made under the Prospectus, and (z) in the case of an event described in
clause (iii),  the twenty-two  (22) Trading Days preceding the occurrence of the
Cap Amount  Redemption Event or Trading Market Redemption Event, as the case may
be, plus all Trading  Days  through and  including  the third (3rd)  Trading Day
following the date on which the Share Limit Wavier has been  properly  delivered
in  accordance  with  Article V.C above (in the case of a Cap Amount  Redemption
Event) or on which the Stockholder  Approval has been obtained (in the case of a
Trading Market  Redemption  Event) (each of such periods  referred to in clauses
(x), (y) and (z) being defined as an "Extended Lookback Period"). If a holder of
Series P Preferred  Stock  determines that sales may not be made pursuant to the
Prospectus (whether by reason of the Corporation's failure or inability to amend
or supplement the Prospectus or otherwise) it shall so notify the Corporation in
writing and, unless the Corporation  provides such holder with a written opinion
of the  Corporation's  counsel  to the  contrary,  such  determination  shall be
binding for purposes of this paragraph.  In the event that an Extended  Lookback
Event occurs within the three (3) Trading  Day-period  following the cure of any
other  Extended   Lookback  Event,  the  Extended   Lookback  Periods  shall  be
cumulative.

<PAGE>

                  D.  Mechanics  of  Conversion.  In order to  convert  Series P
Preferred Stock into full shares of Common Stock, a holder of Series P Preferred
Stock shall: (i) submit a copy of the fully executed notice of conversion in the
form attached hereto as Exhibit A ("Notice of Conversion") to the Corporation by
facsimile  dispatched  prior to  Midnight,  New York City time (the  "Conversion
Notice  Deadline")  on the date  specified  therein as the  Conversion  Date (as
defined in Article  VI.D(d))  (or by other  means  resulting  in, or  reasonably
expected to result in, notice to the Corporation on the Conversion  Date) to the
office of the  Corporation,  which notice shall  specify the number of shares of
Series P Preferred Stock to be converted,  the applicable Conversion Price and a
calculation  of the  number  of  shares  of  Common  Stock  issuable  upon  such
conversion  (together  with a copy of the first page of each  certificate  to be
converted); and (ii) surrender the original certificates representing the Series
P Preferred  Stock being converted (the "Preferred  Stock  Certificates"),  duly
endorsed,  along  with a copy of the Notice of  Conversion  to the office of the
Corporation  or the Transfer  Agent for the Series P Preferred  Stock as soon as
practicable  thereafter.  The  Corporation  shall  not  be  obligated  to  issue
certificates   evidencing   the  shares  of  Common  Stock  issuable  upon  such
conversion,  unless either the Preferred Stock Certificates are delivered to the
Corporation or its Transfer Agent as provided  above, or the holder notifies the
Corporation or its Transfer Agent that such  certificates have been lost, stolen
or destroyed  (subject to the  requirements of subparagraph  (a) below).  In the
case of a dispute as to the calculation of the Conversion Price, the Corporation
shall promptly issue such number of shares of Common Stock that are not disputed
in accordance with  subparagraph  (b) below.  The  Corporation  shall submit the
disputed  calculations  to its outside  accountant via facsimile  within two (2)
business days of receipt of the Notice of Conversion. The accountant shall audit
the  calculations  and notify the  Corporation  and the holder of the results no
later than two (2)  business  days  following  the date it receives the disputed
calculations.  The accountant's  calculation  shall be deemed  conclusive absent
manifest error.

                     (a)  Lost  or  Stolen  Certificates.  Upon  receipt  by the
Corporation  of evidence of the loss,  theft,  destruction  or mutilation of any
Preferred Stock  Certificates  representing  shares of Series P Preferred Stock,
and  (in the  case of  loss,  theft  or  destruction)  of  indemnity  reasonably
satisfactory  to the  Corporation,  and upon surrender and  cancellation  of the
Preferred Stock Certificate(s),  if mutilated, the Corporation shall execute and
deliver new Preferred Stock Certificate(s) of like tenor and date.

                     (b)  Delivery  of Common  Stock Upon  Conversion.  Upon the
surrender  of  certificates  as  described  above  together  with  a  Notice  of
Conversion,  the  Corporation  shall issue and,  within three (3) business  days
after such surrender (or, in the case of lost, stolen or destroyed certificates,
after provision of agreement and  indemnification  pursuant to subparagraph  (a)
above) (the "Delivery Period"), deliver (or cause its Transfer Agent to so issue
and deliver) in  accordance  with the terms  hereof and the  Purchase  Agreement
(including,  without limitation,  in accordance with the requirements of Section
2(g) of the  Purchase  Agreement)  to or upon the order of the  holder  (i) that
number  of shares of Common  Stock  for the  portion  of the  shares of Series P
Preferred Stock converted as shall be determined in accordance herewith and (ii)
a certificate representing the balance of the shares of Series P Preferred Stock
not  converted,  if any.  In  addition to any other  remedies  available  to the
holder,  including actual damages and/or equitable relief, the Corporation shall
pay to a holder  $2,000 per day in cash for each day  beyond a two (2)  business
day grace period  following the Delivery  Period that the  Corporation  fails to
deliver Common Stock (a "Delivery Default") issuable upon surrender of shares of
Series P  Preferred  Stock  with a Notice of  Conversion  until such time as the
Corporation  has  delivered  all  such  Common  Stock  (the  "Delivery   Default
Payments").  Such Delivery  Default Payments shall be paid to such holder by the
fifth day of the month  following  the month in which it has  accrued or, at the
option of the holder (by written  notice to the  Corporation by the first day of
the month  following  the month in which it has accrued),  shall be  convertible
into Common Stock in accordance with the terms of this Article VI.

<PAGE>

                  In lieu of delivering physical  certificates  representing the
Common Stock issuable upon conversion, provided the Corporation's Transfer Agent
is  participating  in  the  Depository  Trust  Company  ("DTC")  Fast  Automated
Securities  Transfer  ("FAST")  program,  upon  request  of the  holder  and its
compliance  with the  provisions  contained  in Article VI.A and in this Article
VI.D, the Corporation  shall use its best efforts to cause its Transfer Agent to
electronically  transmit the Common Stock issuable upon conversion to the holder
by crediting  the account of holder's  Prime Broker with DTC through its Deposit
Withdrawal Agent Commission  ("DWAC") system.  The time periods for delivery and
penalties  described in the immediately  preceding  paragraph shall apply to the
electronic transmittals described herein.

                     (c) No  Fractional  Shares.  If any  conversion of Series P
Preferred Stock would result in a fractional  share of Common Stock or the right
to acquire a fractional  share of Common Stock,  such fractional  share shall be
disregarded and the number of shares of Common Stock issuable upon Conversion of
the Series P Preferred Stock shall be the next higher number of shares.

                     (d)  Conversion  Date. The  "Conversion  Date" shall be the
date  specified  in the  Notice  of  Conversion,  provided  that the  Notice  of
Conversion  is  submitted  by  facsimile  (or by other  means  resulting  in, or
reasonably  expected to result in, notice) to the Corporation  before  Midnight,
New York City time, on the date so  specified,  otherwise  the  Conversion  Date
shall be the first  business day after the date so specified on which the Notice
of Conversion  is actually  received by the  Corporation.  The person or persons
entitled to receive the shares of Common Stock issuable upon conversion shall be
treated for all purposes as the record  holder or holders of such  securities as
of the  Conversion  Date and all rights  with  respect to the shares of Series P
Preferred  Stock  surrendered  shall  forthwith  terminate  except  the right to
receive the shares of Common Stock or other  securities or property  issuable on
such conversion and except that the holders  preferential  rights as a holder of
Series P Preferred  Stock shall survive to the extent the  Corporation  fails to
deliver such securities.

                  E. Reservation of Shares. A number of shares of the authorized
but unissued Common Stock sufficient to provide for the conversion of the Series
P Preferred Stock outstanding  (based on the lesser of the then current Variable
Conversion  Price  and  the  Fixed  Conversion  Price  in  effect  from  time to
time)shall  at all times be reserved by the  Corporation,  free from  preemptive
rights,  for such  conversion  or  exercise.  As of the date of  issuance of the
Series P Preferred  Stock,  6,000,000  authorized and unissued  shares of Common
Stock have been duly  reserved  for  issuance  upon  conversion  of the Series P
Preferred Stock (the "Reserved Amount").  The Reserved Amount shall be increased
from time to time in accordance with the Corporation's  obligations  pursuant to
Section 4(h) of the Purchase  Agreement.  In addition,  if the Corporation shall
issue any  securities  or make any change in its capital  structure  which would
change the number of shares of Common  Stock into which each share of the Series
P Preferred Stock shall be convertible,  the Corporation  shall at the same time
also make proper provision so that thereafter there shall be a sufficient number
of shares of Common Stock authorized and reserved,  free from preemptive rights,
for conversion of the outstanding Series P Preferred Stock.

<PAGE>

                  If at any time a holder of shares of Series P Preferred  Stock
submits a Notice of Conversion,  and the  Corporation  does not have  sufficient
authorized  but  unissued  shares  of Common  Stock  available  to  effect  such
conversion in accordance  with the  provisions of this Article VI (a "Conversion
Default"),  subject to Article XI, the Corporation shall issue to the holder all
of the shares of Common Stock which are available to effect such conversion. The
number  of  shares  of  Series P  Preferred  Stock  included  in the  Notice  of
Conversion  which exceeds the amount which is then  convertible  into  available
shares of Common Stock (the "Excess Amount") shall,  notwithstanding anything to
the  contrary  contained  herein,  not  be  convertible  into  Common  Stock  in
accordance  with the terms hereof until (and at the holder's  option at any time
after)  the date  additional  shares  of  Common  Stock  are  authorized  by the
Corporation to permit such  conversion,  at which time the  Conversion  Price in
respect  thereof  shall  be  the  lesser  of (i)  the  Conversion  Price  on the
Conversion  Default Date (as defined below) and (ii) the Conversion Price on the
Conversion Date elected by the holder in respect thereof.  The Corporation shall
use its best efforts to effect an increase in the authorized number of shares of
Common Stock as soon as possible  following  the earlier of (i) such time that a
holder  of  Series  P  Preferred  Stock  notifies  the  Corporation  or that the
Corporation   otherwise   becomes  aware  that  there  are  or  likely  will  be
insufficient authorized and unissued shares to allow full conversion thereof and
(ii) a Conversion Default. In addition,  the Corporation shall pay to the holder
payments ("Conversion Default Payments ") for a Conversion Default in the amount
of (a) .24,  multiplied  by (b) the sum of the  Stated  Value  plus the  Premium
Amount per share of Series P  Preferred  Stock held by such  holder  through the
Authorization Date (as defined below),  multiplied by (c) (N/365), where N = the
number of days from the day the  holder  submits a Notice of  Conversion  giving
rise to a Conversion  Default (the  "Conversion  Default Date") to the date (the
"Authorization  Date") that the  Corporation  authorizes a sufficient  number of
shares of  Common  Stock to effect  conversion  of the full  number of shares of
Series P Preferred Stock. The Corporation shall send notice to the holder of the
authorization of additional shares of Common Stock, the  Authorization  Date and
the  amount  of  holder's  accrued  Conversion  Default  Payments.  The  accrued
Conversion  Default  Payment  for each  calendar  month shall be paid in cash or
shall be convertible  into Common Stock at the applicable  Conversion  Price, at
the holder's option, as follows:

                     (a) In the event the holder  elects to take such payment in
cash,  cash  payment  shall be made to  holder  by the  fifth  day of the  month
following the month in which it has accrued; and

                     (b) In the event the holder  elects to take such payment in
Common  Stock,  the holder may convert such payment  amount into Common Stock at
the Conversion  Price (as in effect at the time of conversion) at any time after
the fifth  day of the  month  following  the  month in which it has  accrued  in
accordance  with  the  terms  of this  Article  VI (so  long as  there is then a
sufficient number of authorized shares of Common Stock).

                  The  holder's  election  shall  be  made  in  writing  to  the
Corporation  at any time prior to 9:00 p.m,  New York City Time,  on or prior to
the third (3rd) day of the month following the month in which Conversion Default
payments  have  accrued.  If no election is made,  the holder shall be deemed to
have elected to receive cash.  Nothing  herein shall limit the holder's right to
pursue  actual  damages  (to the  extent  in excess  of the  Conversion  Default
Payments)  for the  Corporation's  failure to  maintain a  sufficient  number of
authorized  shares of Common  Stock,  and each  holder  shall  have the right to
pursue  all  remedies  available  at law or in  equity  (including  a decree  of
specific performance and/or injunctive relief).

                  F. Notice of Conversion Price Adjustments. Upon the occurrence
of each  adjustment or  readjustment  of the  Conversion  Price pursuant to this
Article  VI, the  Corporation,  at its  expense,  shall  promptly  compute  such
adjustment or  readjustment  in accordance with the terms hereof and prepare and
furnish to each holder of Series P Preferred  Stock a certificate  setting forth
such adjustment or readjustment  and showing in detail the facts upon which such
adjustment or readjustment is based.  The  Corporation  shall,  upon the written
request at any time of any holder of Series P Preferred Stock,  furnish or cause
to be  furnished  to such  holder  a like  certificate  setting  forth  (i) such
adjustment or readjustment,  (ii) the Conversion Price at the time in effect and
(iii) the  number of shares of Common  Stock and the  amount,  if any,  of other
securities or property which at the time would be received upon  conversion of a
share of Series P Preferred Stock.

<PAGE>

                  G.  Status as  Stockholders.  Upon  submission  of a Notice of
Conversion  by a holder of Series P  Preferred  Stock,  (i) the  shares  covered
thereby  (other than the shares,  if any,  which cannot be issued  because their
issuance would exceed such holder's  allocated portion of the Reserved Amount or
Maximum Share Amount) shall be deemed  converted into shares of Common Stock and
(ii) the  holder's  rights  as a holder  of such  converted  shares  of Series P
Preferred  Stock shall cease and terminate,  excepting only the right to receive
certificates for such shares of Common Stock and to any remedies provided herein
or otherwise  available at law or in equity to such holder  because of a failure
by the Corporation to comply with the terms of this  Certificate of Designation.
Notwithstanding the foregoing, if a holder has not received certificates for all
shares  of  Common  Stock  prior to the  tenth  (10th)  business  day  after the
expiration  of the Delivery  Period with  respect to a  conversion  of shares of
Series P Preferred  Stock for any  reason,  then  (unless  the holder  otherwise
elects to retain  its  status as a holder of Common  Stock by so  notifying  the
Corporation)  the holder  shall  regain the rights of a holder of such shares of
Series P Preferred  Stock with  respect to such  unconverted  shares of Series P
Preferred Stock and the Corporation  shall, as soon as practicable,  return such
unconverted  shares of Series P Preferred Stock to the holder or, if such shares
of Series P  Preferred  Stock have not been  surrendered,  adjust its records to
reflect that such shares of Series P Preferred Stock have not been converted. In
all cases,  the holder shall  retain all of its rights and remedies  (including,
without limitation,  (i) the right to receive Delivery Default Payments pursuant
to Article VI.E to the extent required thereby for such Delivery Default and any
subsequent Delivery Default and (ii) the right to have the Conversion Price with
respect to subsequent  conversions  determined in accordance with Article VI.E.)
for the Corporation's failure to convert the Series P Preferred Stock.

                            VII. AUTOMATIC CONVERSION
                            -------------------------

                  Subject to the  limitations on conversion set forth in Article
VI.A(d) and subject to the provisions of Article  VI.A(c) and so long as (i) all
of the shares of Common Stock issuable upon conversion of all outstanding shares
of Series P Preferred  Stock are then (x)  authorized and reserved for issuance,
(y)  registered  for  re-sale  under the 1933 Act by the holders of the Series P
Preferred Stock (or may otherwise be resold publicly  without  restriction)  and
(z) eligible to be traded on Nasdaq,  the NYSE, the AMEX or Nasdaq  SmallCap and
(ii)  there is not then a  continuing  Mandatory  Redemption  Event,  Cap Amount
Redemption  Event or Trading  Market  Redemption  Event,  each share of Series P
Preferred  Stock  issued and  outstanding  on January 26,  2003 (the  "Automatic
Conversion Date"),  automatically shall be converted into shares of Common Stock
on such date at the then  effective  Conversion  Price in accordance  with,  and
subject to, the  provisions of Article VI hereof (the  "Automatic  Conversion").
The Automatic  Conversion  Date shall be delayed by one (1) Trading Day for each
Trading Day  occurring  prior  thereto and prior to the full  conversion  of the
Series P  Preferred  Stock that (i) any  Registration  Statement  required to be
filed and to be effective  pursuant to the Registration  Rights Agreement is not
effective or sales of all of the Registrable Securities otherwise cannot be made
thereunder during the Registration Period (as defined in the Registration Rights
Agreement)  (whether  by  reason  of  the  Corporation's   failure  to  properly
supplement or amend the prospectus included therein in accordance with the terms
of the Registration Rights Agreement or otherwise,  including during any Allowed
Delays (as defined in Section 3(f) of the Registration Rights Agreement)),  (ii)
any Mandatory  Redemption  Event, Cap Amount  Redemption Event or Trading Market
Redemption  Event exists,  without regard to whether any cure periods shall have
run or  (iii)  that  the  Corporation  is in  breach  of any of its  obligations
pursuant to Section 4(h) of the Purchase  Agreement.  The  Automatic  Conversion
Date shall be the  Conversion  Date for purposes of  determining  the Conversion
Price and the time within which certificates  representing the Common Stock must
be delivered to the holder.

<PAGE>

                       VIII. CONVERSION BY THE CORPORATION
                       -----------------------------------

                  Subject to the  limitations on conversion set forth in Article
VI.A(b) and so long as for at all times during the period  beginning thirty (30)
Trading Days prior to the Forced Conversion  Trigger Date (as defined below) and
ending on the  Corporation  Conversion  Date (as  defined  below) (i) all of the
shares of Common Stock  issuable upon  conversion of all  outstanding  shares of
Series P Preferred Stock are then (x) authorized and reserved for issuance,  (y)
registered  for  re-sale  under  the 1933  Act by the  holders  of the  Series P
Preferred Stock (or may otherwise be resold publicly  without  restriction)  and
(z) eligible to be traded on Nasdaq,  the NYSE, the AMEX or Nasdaq  SmallCap and
(ii)  there is not then a  continuing  Mandatory  Redemption  Event,  Cap Amount
Redemption Event or Trading Market Redemption Event, then, at any time after the
earlier of (A) the twelve (12) month  anniversary  of the date the  Registration
Statement  required  to be filed  pursuant to Section  2(a) of the  Registration
Rights Agreement is declared effective by the SEC (subject to extension for each
Trading  Day  following  effectiveness  that  sales  of all  of the  Registrable
Securities  (as defined in the  Registration  Rights  Agreement)  cannot be made
pursuant  to the  Registration  Statement  (whether  by reason of the  Company's
failure to  properly  supplement  or amend the  prospectus  included  therein in
accordance  with the  terms of the  Registration  Rights  Agreement,  during  an
Allowed Delay or otherwise)),  and (B) provided that the Registration  Statement
has been  effective and sales of all of the  Registrable  Securities can be made
thereunder for at least  forty-five  (45) days, the  consummation of a Qualified
Public Offering (as defined below),  the Corporation shall have the right on any
Trading Day (a "Forced  Conversion  Trigger Date") on which, and for a period of
twenty (20) consecutive Trading Days prior thereto, the Closing Bid Price of the
Common  Stock is greater  than 200% of the Fixed  Conversion  Price  (subject to
adjustment  for stock  splits,  stock  dividends and similar  transactions),  to
deliver written notice (the "Corporation  Conversion  Notice") to the holders of
the Series P Preferred Stock (which notice may not be sent to the holders of the
Series P Preferred  Stock (a) until the  Corporation is permitted to convert the
Series P Preferred Stock pursuant to this Article VIII and (b) during any period
of time in which  the  Corporation  is in  possession  of any  information,  the
disclosure of which would reasonably be expected to cause a material increase in
the Trade Price of the  Corporation's  Common Stock,  unless such information is
publicly  disclosed  at least five (5)  Trading  Days  prior to the  Corporation
Conversion  Date (as  defined  below)) of its  intention  to convert  all of the
outstanding  shares of Series P Preferred  Stock into shares of Common  Stock in
accordance  with Article VI and this Article  VIII;  provided,  however,  that a
Corporation  Conversion  (as defined below) shall not be permitted if during the
period beginning on the date the Corporation  Conversion  Notice is delivered to
the holders of the Series P Preferred  Stock and ending on the Trading Day prior
to the  Corporation  Conversion Date the average Closing Bid Price of the Common
Stock during such period is not greater than 200% of the Fixed  Conversion Price
(subject  to  adjustment   for  stock  splits,   stock   dividends  and  similar
transactions). Any conversion hereunder (a "Corporation Conversion") shall be as
of the date (the  "Corporation  Conversion  Date")  specified in the Corporation
Conversion  Notice  (but in no event  prior to the  fifteenth  (15)  Trading Day
following the date of such  notice),  which notice must be given within five (5)
Trading Days of the Forced Conversion  Trigger Date. The Corporation  Conversion
Notice shall be  delivered  to the holders of Series P Preferred  Stock at their
registered addresses appearing on the books and records of the Corporation.  The
Corporation  Conversion  Date shall be the  "Conversion  Date" for  purposes  of
determining  the  Conversion  Price  and  the  time  within  which  certificates
representing the Common Stock must be delivered to the holder upon a Corporation
Conversion.  Notwithstanding  notice of a  Corporation  conversion,  the holders
shall at all times prior to the  Corporation  Conversion Date maintain the right
to convert  all or any shares of Series P  Preferred  Stock in  accordance  with
Article VI.  "Qualified  Public  Offering" means a firm commitment  underwritten
public offering,  managed by an underwriter of nationally  recognized  standing,
resulting in gross proceeds to the Corporation of at least $45,000,000.

<PAGE>

                                IX. VOTING RIGHTS
                                -----------------

                  The  holders  of the Series P  Preferred  Stock have no voting
power  whatsoever,   except  as  otherwise  provided  by  the  Delaware  General
Corporation Law ("DGCL"), in this Article IX, and in Article X below.

                  Notwithstanding  the above, the Corporation shall provide each
holder of Series P Preferred Stock with prior notification of any meeting of the
shareholders  (and  copies  of proxy  materials  and other  information  sent to
shareholders).  In the event of any taking by the Corporation of a record of its
shareholders  for the purpose of  determining  shareholders  who are entitled to
receive  payment of any dividend or other  distribution,  any right to subscribe
for, purchase or otherwise acquire (including by way of merger, consolidation or
recapitalization) any share of any class or any other securities or property, or
to receive any other right, or for the purpose of determining  shareholders  who
are entitled to vote in connection  with any proposed sale,  lease or conveyance
of all or substantially  all of the assets of the  Corporation,  or any proposed
liquidation, dissolution or winding up of the Corporation, the Corporation shall
mail a notice to each  holder,  at least ten (10) days prior to the record  date
specified  therein  (or  thirty  (30)  days  prior  to the  consummation  of the
transaction  or  event,  whichever  is  earlier),  of the date on which any such
record is to be taken for the purpose of such dividend,  distribution,  right or
other event,  and a brief  statement  regarding the amount and character of such
dividend, distribution, right or other event to the extent known at such time.

                  To the extent  that under the DGCL the vote of the  holders of
the  Series  P  Preferred  Stock,  voting  separately  as a class or  series  as
applicable,  is required to  authorize a given  action of the  Corporation,  the
affirmative  vote or consent of the holders of at least a majority of the shares
of the Series P Preferred  Stock  represented  at a duly held meeting at which a
quorum is present or by written  consent of a majority of the shares of Series P
Preferred  Stock  (except as  otherwise  may be  required  under the DGCL) shall
constitute  the  approval of such action by the class.  To the extent that under
the DGCL  holders  of the Series P  Preferred  Stock are  entitled  to vote on a
matter with holders of Common Stock, voting together as one class, each share of
Series P  Preferred  Stock  shall be  entitled to a number of votes equal to the
number of shares of Common  Stock  into which it is then  convertible  using the
record date for the taking of such vote of  shareholders as the date as of which
the  Conversion  Price is  calculated.  Holders of the Series P Preferred  Stock
shall be entitled to notice of all shareholder meetings or written consents (and
copies of proxy  materials  and other  information  sent to  shareholders)  with
respect to which they would be entitled to vote,  which notice would be provided
pursuant to the Corporation's bylaws and the DGCL.

                            X. PROTECTIVE PROVISIONS
                            ------------------------

                  So long as shares of Series P Preferred Stock are outstanding,
the  Corporation  shall not,  without  first  obtaining the approval (by vote or
written consent,  as provided by the DGCL) of the holders of at least a majority
of the then outstanding shares of Series P Preferred Stock:

                     (a)   alter,   amend  or   repeal   (whether   by   merger,
consolidation or otherwise) the rights,  preferences or privileges of the Series
P  Preferred  Stock or any  capital  stock of the  Corporation  so as to  affect
adversely the Series P Preferred Stock;

<PAGE>

                     (b) create any new class or series of capital  stock having
a preference over the Series P Preferred Stock as to distribution of assets upon
liquidation, dissolution or winding up of the Corporation (as previously defined
in Article II hereof, "Senior Securities");

                     (c) create any new class or series of capital stock ranking
pari passu with the Series P Preferred  Stock as to  distribution of assets upon
liquidation, dissolution or winding up of the Corporation (as previously defined
in Article II hereof, "Pari Passu Securities");

                     (d)  increase the  authorized  number of shares of Series P
Preferred Stock;

                     (e) issue any Senior  Securities or Pari Passu  Securities;
except pursuant to the terms of any Senior  Securities or Pari Passu  Securities
outstanding on the Issue Date;

                     (f) increase the par value of the Common Stock, or

                     (g) do any act or thing not authorized or  contemplated  by
this Certificate of Designation which would result in taxation of the holders of
shares of the Series P Preferred Stock under Section 305 of the Internal Revenue
Code of 1986, as amended (or any  comparable  provision of the Internal  Revenue
Code as hereafter from time to time amended).

                  In the  event  holders  of at  least a  majority  of the  then
outstanding shares of Series P Preferred Stock agree to allow the Corporation to
alter or change the rights,  preferences or privileges of the shares of Series P
Preferred Stock,  pursuant to subsection (a) above, so as to affect the Series P
Preferred  Stock,  then the  Corporation  will deliver  notice of such  approved
change to the holders of the Series P Preferred Stock that did not agree to such
alteration or change (the  "Dissenting  Holders") and  Dissenting  Holders shall
have the right for a period of thirty (30) days to convert pursuant to the terms
of this  Certificate of  Designation  as they exist prior to such  alteration or
change or continue to hold their shares of Series P Preferred Stock.

                            XI. PRO RATA ALLOCATIONS
                            ------------------------

                  The Maximum  Share Amount and the Reserved  Amount  (including
any increases  thereto) shall be allocated by the Corporation pro rata among the
holders of Series P  Preferred  Stock  based on the number of shares of Series P
Preferred Stock issued to each holder. Each increase to the Maximum Share Amount
and the Reserved  Amount shall be allocated pro rata among the holders of Series
P Preferred Stock based on the number of shares of Series P Preferred Stock held
by each  holder  at the time of the  increase  in the  Maximum  Share  Amount or
Reserved Amount.  In the event a holder shall sell or otherwise  transfer any of
such  holder's  shares of Series P Preferred  Stock,  each  transferee  shall be
allocated  a pro rata  portion of such  transferor's  Maximum  Share  Amount and
Reserved  Amount.  Any portion of the Maximum  Share  Amount or Reserved  Amount
which remains allocated to any person or entity which does not hold any Series P
Preferred Stock shall be allocated to the remaining  holders of shares of Series
P Preferred  Stock, pro rata based on the number of shares of Series P Preferred
Stock then held by such holders.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

                  IN  WITNESS  WHEREOF,   this  Certificate  of  Designation  is
executed on behalf of the Corporation this 26th day of January, 2000.

                                 EGLOBE, INC.

                                 By: /s/ Christopher J. Vizas
                                    --------------------------------------------
                                          Christopher J. Vizas
                                          Chairman of the Board and
                                          Chief Executive Officer

<PAGE>

                                                                       EXHIBIT A

                              NOTICE OF CONVERSION

                            (To be Executed by the Registered Holder
                        in order to Convert the Series P Preferred Stock)

                  The undersigned  hereby  irrevocably  elects to convert ______
shares of Series P Preferred  Stock,  represented  by stock  certificate  No(s).
__________  (the  "Preferred  Stock  Certificates")  into shares of common stock
("Common Stock") of eGlobe,  Inc., a Delaware  corporation  (the  "Corporation")
according  to the  conditions  of the  Certificate  of  Designation  of Series P
Preferred Stock, as of the date written below. If securities are permitted to be
issued in the name of a person other than the undersigned,  the undersigned will
pay all transfer taxes payable with respect  thereto and is delivering  herewith
such certificates. No fee will be charged to the undersigned for any conversion,
except for transfer taxes,  if any. A copy of each Preferred  Stock  Certificate
(or evidence of loss, theft or destruction thereof) is attached hereto.

                  The   undersigned   hereby   irrevocably   elects  to  convert
$___________ in Conversion  Default  Payments,  $__________ in Delivery  Default
Payments  and/or  $___________  in  payments  pursuant  to  Section  2(c) of the
Registration  Rights  Agreement  at the  Applicable  Conversion  Price set forth
below.

                  The Corporation shall electronically transmit the Common Stock
issuable pursuant to this Notice of Conversion to the account of the undersigned
or its nominee with DTC through its Deposit  Withdrawal Agent Commission  system
("DWAC Transfer").

                  Name of DTC Prime Broker:

                  Account
                  Number:

         y        In lieu of receiving shares of Common Stock issuable  pursuant
                  to this Notice of  Conversion by way of a DWAC  Transfer,  the
                  undersigned   hereby   requests,   if   permitted,   that  the
                  Corporation issue a certificate or certificates for the number
                  of shares of Common Stock set forth above  (which  numbers are
                  based on the calculation of the undersigned  attached  hereto)
                  in the name(s)  specified  immediately below or, if additional
                  space is necessary, on an attachment hereto:

                  Name:    ___________________________
                  Address: ___________________________
                           ___________________________

                  The  undersigned  represents  and warrants that all offers and
sales by the  undersigned of the  securities  issuable to the  undersigned  upon
conversion  of  the  Series  P  Preferred   Stock  shall  be  made  pursuant  to
registration of the securities under the Securities Act of 1933, as amended (the
"Act"), or pursuant to an exemption from registration under the Act.

                           Date of Conversion:
                           Market Price Days:
                           Applicable Conversion Price:
                           Number of Shares of
                           Common Stock to be Issued pursuant to:
                           (i) Conversion of Series P Preferred Stock:

<PAGE>

                           (ii)Conversion of Conversion Default
                           Payments, Delivery Default Payments and/or
                           payments  pursuant  to  Section  2(c) of the
                           Registration Rights Agreement:

                           Signature:
                           Name:
                           Address:

*The  Corporation  is not  required  to issue  shares of Common  Stock until the
original Series P Preferred Stock  Certificate(s) (or evidence of loss, theft or
destruction  thereof) to be  converted  are received by the  Corporation  or its
Transfer Agent.  The Corporation  shall issue and deliver shares of Common Stock
to the  converting  holder not later than three (3) business  days (subject to a
two (2) business day grace period) following  receipt of the original  Preferred
Stock  Certificate(s)  to be converted,  and shall make payments pursuant to the
Certificate  of  Designation  for the number of business  days such issuance and
delivery is late.EXHIBIT 4.2

***** Confidential  Treatment has been requested for portions of this agreement.
The copy file herein omits information subject to the  confidentiality  request.
Omissions are  designated as [*****].  A complete  version of this agreement has
been filed separately with the Securities and Exchange Commission.

         THIS WARRANT AND THE SHARES  ISSUABLE UPON THE EXERCISE OF THIS WARRANT
         HAVE NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
         EXCEPT AS  OTHERWISE  SET  FORTH  HEREIN  OR IN A  SECURITIES  PURCHASE
         AGREEMENT DATED AS OF JANUARY 26, 2000, NEITHER THIS WARRANT NOR ANY OF
         SUCH SHARES MAY BE SOLD,  TRANSFERRED  OR ASSIGNED IN THE ABSENCE OF AN
         EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER SAID ACT OR,
         AN OPINION OF COUNSEL,  IN FORM,  SUBSTANCE  AND SCOPE,  CUSTOMARY  FOR
         OPINIONS OF COUNSEL IN COMPARABLE  TRANSACTIONS,  THAT  REGISTRATION IS
         NOT REQUIRED  UNDER SUCH ACT OR UNLESS SOLD  PURSUANT TO RULE 144 UNDER
         SUCH ACT.

   Right to Purchase 375,000 Shares of Common Stock, par value $.001 per share

                             STOCK PURCHASE WARRANT

         THIS CERTIFIES THAT, for value received,  RGC INTERNATIONAL  INVESTORS,
LDC or its  registered  assigns,  is entitled to purchase  from EGLOBE,  INC., a
Delaware  corporation (the  "Company"),  at any time or from time to time during
the period specified in Paragraph 2 hereof,  Three Hundred Seventy Five Thousand
(375,000) fully paid and nonassessable shares of the Company's Common Stock, par
value $.001 per share (the "Common  Stock"),  at an exercise price of $12.04 per
share (the "Exercise Price"). The term "Warrant Shares," as used herein,  refers
to the shares of Common Stock purchasable hereunder.  The Warrant Shares and the
Exercise Price are subject to adjustment as provided in Paragraph 4 hereof.  The
term Warrants means this Warrant and the other warrants  issued pursuant to that
certain Securities Purchase Agreement,  dated January 26, 2000, by and among the
Company and the Buyers  listed on the  execution  page thereof (the  "Securities
Purchase Agreement").

         This  Warrant  is  subject  to the  following  terms,  provisions,  and
conditions:

         1. Manner of Exercise;  Issuance of  Certificates;  Payment for Shares.
Subject to the  provisions  hereof,  this Warrant may be exercised by the holder
hereof,  in whole or in part, by the surrender of this Warrant,  together with a
completed  exercise  agreement  in  the  form  attached  hereto  (the  "Exercise
Agreement"),  to the Company during normal business hours on any business day at
the Company's principal executive offices (or such other office or agency of the
Company  as it may  designate  by notice  to the  holder  hereof),  and upon (i)
payment to the Company in cash,  by certified or official  bank check or by wire
transfer  for the account of the Company of the  Exercise  Price for the Warrant
Shares specified in the Exercise  Agreement or (ii) if the resale of the Warrant
Shares  by  the  holder  is  not  then  registered   pursuant  to  an  effective
registration  statement  under  the  Securities  Act of 1933,  as  amended  (the
"Securities Act"), delivery to the Company of a written notice of an election to
effect a "Cashless Exercise" (as defined in Section 11(c) below) for the Warrant
Shares  specified in the  Exercise  Agreement.  The Warrant  Shares so purchased
shall be deemed to be issued to the  holder  hereof or such  holder's  permitted
designee, as the record owner of such shares, as of the close of business on the
date on which this Warrant shall have been surrendered,  the completed  Exercise
Agreement shall have been  delivered,  and payment shall have been made for such
shares (or an election to effect a Cashless Exercise has been made) as set forth
above.  Certificates  for the  Warrant  Shares so  purchased,  representing  the
aggregate  number  of  shares  specified  in the  Exercise  Agreement,  shall be
delivered to the holder hereof within a reasonable time, not exceeding three (3)
business days, after this Warrant shall have been so exercised. The certificates
so delivered  shall be in such  denominations  as may be requested by the holder
hereof  and shall be  registered  in the name of such  holder or such other name
permitted as shall be designated by such holder. If this Warrant shall have been
exercised  only in part,  then,  unless this  Warrant has  expired,  the Company
shall, at its expense, at the time of delivery of such certificates,  deliver to
the holder a new Warrant representing the number of shares with respect to which
this Warrant shall not then have been exercised.

<PAGE>

                  Notwithstanding  anything in this Warrant to the contrary,  in
no event  shall the holder of this  Warrant be  entitled to exercise a number of
Warrants (or portions  thereof) in excess of the number of Warrants (or portions
thereof)  upon  exercise  of which the sum of (i) the number of shares of Common
Stock  beneficially owned by the holder and its affiliates (other than shares of
Common Stock which may be deemed beneficially owned through the ownership of the
unexercised  Warrants and the  unexercised or  unconverted  portion of any other
securities  of the Company  (including  shares of Series P  Preferred  Stock (as
defined  in the  Securities  Purchase  Agreement))  subject to a  limitation  on
conversion or exercise  analogous to the limitation  contained  herein) and (ii)
the number of shares of Common Stock  issuable upon exercise of the Warrants (or
portions  thereof) with respect to which the  determination  described herein is
being  made,  would  result  in  beneficial  ownership  by the  holder  and  its
affiliates  of more than 4.9% of the  outstanding  shares of Common  Stock.  For
purposes of the immediately  preceding sentence,  beneficial  ownership shall be
determined in accordance  with Section 13(d) of the  Securities  Exchange Act of
1934, as amended, and Regulation 13D-G thereunder,  except as otherwise provided
in clause (i) hereof.

         2. Period of Exercise.  This Warrant is exercisable at any time or from
time to time on or after the date on which this Warrant is issued and  delivered
pursuant to the terms of the  Securities  Purchase  Agreement (the "Issue Date")
and before 5:00 p.m.,  New York City time on the fifth (5th)  anniversary of the
Issue Date (the "Exercise Period").

         3. Certain Agreements of the Company.  The Company hereby covenants and
agrees as follows:

                  (a) Shares to be Fully Paid.  All Warrant  Shares  will,  upon
issuance in accordance with the terms of this Warrant, be validly issued,  fully
paid, and nonassessable and free from all taxes, liens, and charges with respect
to the issue thereof.

                  (b)  Reservation of Shares.  During the Exercise  Period,  the
Company  shall at all times have  authorized,  and  reserved  for the purpose of
issuance upon exercise of this Warrant,  a sufficient number of shares of Common
Stock to provide for the exercise of this Warrant in  accordance  with the terms
of Section 4(b) of the Securities Purchase Agreement.

                  (c) Listing.  The Company shall promptly secure the listing of
the shares of Common  Stock  issuable  upon  exercise of the  Warrant  upon each
national  securities  exchange or automated quotation system, if any, upon which
shares of Common Stock are then listed  (subject to official  notice of issuance
upon exercise of this Warrant) and shall  maintain,  so long as any other shares
of Common  Stock shall be so listed,  such listing of all shares of Common Stock
from time to time issuable  upon the exercise of this  Warrant;  and the Company
shall  so list on each  national  securities  exchange  or  automated  quotation
system, as the case may be, and shall maintain such listing of, any other shares
of capital  stock of the Company  issuable  upon the exercise of this Warrant if
and so long as any  shares of the same  class  shall be listed on such  national
securities exchange or automated quotation system.

<PAGE>

                  (d)  Certain  Actions  Prohibited.  The  Company  will not, by
amendment  of its  charter or through  any  reorganization,  transfer of assets,
consolidation,  merger,  dissolution,  issue or sale of securities, or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed by it hereunder,  but will at all times in
good faith assist in the carrying out of all the  provisions of this Warrant and
in the taking of all such action as may reasonably be requested by the holder of
this  Warrant in order to protect the  exercise  privilege of the holder of this
Warrant  against  dilution or other  impairment,  consistent  with the tenor and
purpose of this Warrant.  Without limiting the generality of the foregoing,  the
Company  (i) will not  increase  the par value of any  shares  of  Common  Stock
receivable  upon the exercise of this Warrant  above the Exercise  Price then in
effect,  and (ii) will take all such actions as may be necessary or  appropriate
in  order  that the  Company  may  validly  and  legally  issue  fully  paid and
nonassessable shares of Common Stock upon the exercise of this Warrant.

                  (e) Successors and Assigns.  This Warrant will be binding upon
any entity succeeding to the Company by merger, consolidation, or acquisition of
all or substantially all the Company's assets.

         4. Antidilution  Provisions.  During the Exercise Period,  the Exercise
Price and the number of Warrant Shares shall be subject to adjustment  from time
to time as provided in this Paragraph 4.

                  In the event  that any  adjustment  of the  Exercise  Price as
required  herein  results in a fraction of a cent,  such Exercise Price shall be
rounded up to the nearest cent.

                  (a)  Adjustment  of  Exercise  Price and Number of Shares upon
Issuance of Common Stock.  Except as otherwise provided in Paragraphs  4(b)(vi),
4(c)  and 4(e)  hereof,  if and  whenever  on or after  the  Issue  Date of this
Warrant,  the Company  issues or sells,  or in accordance  with  Paragraph  4(b)
hereof is  deemed to have  issued  or sold,  any  shares of Common  Stock for no
consideration or for a consideration  per share (before  deduction of reasonable
expenses or  commissions or  underwriting  discounts or allowances in connection
therewith)  less than  Market  Price  (as  hereinafter  defined)  on the date of
issuance (or deemed issuance) of such Common Stock (a "Dilutive Issuance"), then
immediately upon the Dilutive Issuance,  the Exercise Price will be reduced to a
price determined by multiplying the Exercise Price in effect  immediately  prior
to the Dilutive Issuance by a fraction,  (i) the numerator of which is an amount
equal  to the  sum of  (x)  the  number  of  shares  of  Common  Stock  actually
outstanding immediately prior to the Dilutive Issuance, plus (y) the quotient of
the aggregate  consideration,  calculated as set forth in Paragraph 4(b) hereof,
received by the Company upon such Dilutive  Issuance divided by the Market Price
in effect immediately prior to the Dilutive Issuance and (ii) the denominator of
which is the total  number of shares of  Common  Stock  Deemed  Outstanding  (as
defined below) immediately after the Dilutive Issuance.

                  (b) Effect on Exercise Price of Certain  Events.  For purposes
of  determining  the adjusted  Exercise Price under  Paragraph 4(a) hereof,  the
following will be applicable:

                           (i) Issuance of Rights or Options.  If the Company in
any manner  issues or grants any  warrants,  rights or  options,  whether or not
immediately  exercisable,  to subscribe for or to purchase Common Stock or other
securities  convertible  into or  exchangeable  for Common  Stock  ("Convertible
Securities")  (such  warrants,  rights and options to purchase  Common  Stock or
Convertible  Securities are hereinafter  referred to as "Options") and the price
per share for which Common  Stock is issuable  upon the exercise of such Options
is less than the Market  Price on the date of issuance or grant of such  Options
then the  maximum  total  number of shares of  Common  Stock  issuable  upon the
exercise of all such  Options  will,  as of the date of the issuance or grant of
such Options,  be deemed to be  outstanding  and to have been issued and sold by
the Company for such price per share.  For purposes of the  preceding  sentence,
the "price per share for which  Common  Stock is issuable  upon the  exercise of
such Options" is determined by dividing (i) the total amount,  if any,  received
or  receivable by the Company as  consideration  for the issuance or granting of
all such Options, plus the minimum aggregate amount of additional consideration,
if any,  payable to the Company upon the exercise of all such Options,  plus, in
the case of Convertible  Securities  issuable upon the exercise of such Options,
the  minimum  aggregate  amount of  additional  consideration  payable  upon the
conversion or exchange  thereof at the time such  Convertible  Securities  first
become  convertible or exchangeable,  by (ii) the maximum total number of shares
of Common Stock  issuable upon the exercise of all such Options  (assuming  full
conversion of Convertible Securities,  if applicable).  No further adjustment to
the  Exercise  Price will be made upon the actual  issuance of such Common Stock
upon  the  exercise  of such  Options  or upon the  conversion  or  exchange  of
Convertible Securities issuable upon exercise of such Options.

<PAGE>

                           (ii)  Issuance  of  Convertible  Securities.  If  the
Company in any manner issues or sells any Convertible Securities, whether or not
immediately  convertible  (other  than  where  the  same are  issuable  upon the
exercise of Options)  and the price per share for which Common Stock is issuable
upon such  conversion  or exchange is less than the Market  Price on the date of
issuance of such Convertible  Securities then the maximum total number of shares
of Common Stock issuable upon the conversion or exchange of all such Convertible
Securities will, as of the date of the issuance of such Convertible  Securities,
be deemed to be outstanding  and to have been issued and sold by the Company for
such price per share. For the purposes of the preceding sentence, the "price per
share for which Common Stock is issuable  upon such  conversion  or exchange" is
determined by dividing (i) the total amount,  if any,  received or receivable by
the Company as  consideration  for the issuance or sale of all such  Convertible
Securities,  plus the minimum aggregate amount of additional  consideration,  if
any,  payable to the Company upon the conversion or exchange thereof at the time
such Convertible  Securities first become  convertible or exchangeable,  by (ii)
the maximum total number of shares of Common Stock  issuable upon the conversion
or exchange of all such  Convertible  Securities.  No further  adjustment to the
Exercise  Price will be made upon the actual  issuance of such Common Stock upon
conversion or exchange of such Convertible Securities.

                           (iii) Change in Option Price or  Conversion  Rate. If
there is a change  at any time in (i) the  amount  of  additional  consideration
payable to the  Company  upon the  exercise of any  Options;  (ii) the amount of
additional consideration,  if any, payable to the Company upon the conversion or
exchange  of any  Convertible  Securities;  or  (iii)  the  rate  at  which  any
Convertible  Securities are convertible  into or  exchangeable  for Common Stock
(other  than  under or by reason  of  provisions  designed  to  protect  against
dilution),  the  Exercise  Price in  effect at the time of such  change  will be
readjusted  to the  Exercise  Price which would have been in effect at such time
had such Options or Convertible  Securities still outstanding  provided for such
changed additional consideration or changed conversion rate, as the case may be,
at the time initially granted, issued or sold.

                           (iv)  Treatment  of Expired  Options and  Unexercised
Convertible  Securities.  If, in any case,  the total number of shares of Common
Stock issuable upon exercise of any Option or upon conversion or exchange of any
Convertible  Securities is not, in fact,  issued and the rights to exercise such
Option or to convert or exchange such Convertible  Securities shall have expired
or  terminated,  the  Exercise  Price then in effect will be  readjusted  to the
Exercise Price which would have been in effect at the time of such expiration or
termination had such Option or Convertible Securities, to the extent outstanding
immediately  prior to such  expiration or termination  (other than in respect of
the actual  number of shares of Common Stock issued upon  exercise or conversion
thereof), never been issued.

<PAGE>

*****  Certain  information  on this page has been omitted and filed  separately
with the Securities  and Exchange  Commission.  Confidential  Treatment has been
requested with respect to the omitted portions

                           (v)  Calculation of  Consideration  Received.  If any
Common Stock, Options or Convertible  Securities are issued, granted or sold for
cash, the  consideration  received therefor for purposes of this Warrant will be
the amount  received by the Company  therefor,  before  deduction of  reasonable
commissions,  underwriting  discounts or allowances or other reasonable expenses
paid or incurred by the Company in connection with such issuance, grant or sale.
In case any Common Stock,  Options or Convertible  Securities are issued or sold
for a consideration part or all of which shall be other than cash, the amount of
the consideration other than cash received by the Company will be the fair value
of such consideration,  except where such consideration  consists of securities,
in which case the amount of  consideration  received by the Company  will be the
market price thereof  (calculated  in the manner  provided for  calculating  the
Market Price of the Common Stock) as of the date of receipt.  In case any Common
Stock,  Options or  Convertible  Securities  are issued in  connection  with any
acquisition,  merger or  consolidation  in which the  Company  is the  surviving
corporation,  the amount of consideration therefor will be deemed to be the fair
value of such  portion  of the net  assets  and  business  of the  non-surviving
corporation  as is  attributable  to such Common Stock,  Options or  Convertible
Securities,  as the case may be. The fair value of any consideration  other than
cash or securities will be determined in good faith by the Board of Directors of
the Company.

                           (vi)  Exceptions to Adjustment of Exercise  Price. No
adjustment  to the  Exercise  Price  will be made (i) upon the  exercise  of any
warrants,  options or convertible securities granted,  issued and outstanding on
the date of  issuance  of this  Warrant;  (ii) upon the grant or exercise of any
stock or options which may hereafter be granted or exercised  under any employee
benefit plan of the Company now existing or to be implemented in the future,  so
long as the  issuance  of such stock or options is approved by a majority of the
independent  members of the Board of  Directors  of the Company or a majority of
the  members  of a  committee  of  independent  directors  established  for such
purpose; or (iii) upon the exercise of the Warrants;  or (iv) any sale of Common
Stock to entities  controlled by or affiliated with [*****] to the extent of the
restrictions on such sale referenced in Section 4(e) of the Securities  Purchase
Agreement.

                  (c) Subdivision or Combination of Common Stock. If the Company
at any time subdivides (by any stock split,  stock  dividend,  recapitalization,
reorganization,  reclassification  or  otherwise)  the  shares of  Common  Stock
acquirable  hereunder into a greater number of shares,  then,  after the date of
record for effecting such subdivision,  the Exercise Price in effect immediately
prior to such subdivision will be proportionately reduced. If the Company at any
time  combines  (by  reverse  stock  split,  recapitalization,   reorganization,
reclassification  or otherwise) the shares of Common Stock acquirable  hereunder
into a smaller  number of shares,  then,  after the date of record for effecting
such  combination,  the  Exercise  Price  in  effect  immediately  prior to such
combination will be proportionately increased.

<PAGE>

                  (d)  Adjustment in Number of Shares.  Upon each  adjustment of
the Exercise Price pursuant to the provisions of this Paragraph 4, the number of
shares of Common Stock  issuable upon exercise of this Warrant shall be adjusted
by multiplying a number equal to the Exercise Price in effect  immediately prior
to such  adjustment  by the  number  of shares of  Common  Stock  issuable  upon
exercise of this Warrant  immediately  prior to such adjustment and dividing the
product so obtained by the adjusted Exercise Price.

                  (e)   Consolidation,   Merger   or   Sale.   In  case  of  any
consolidation  of the  Company  with,  or merger of the  Company  into any other
corporation, or in case of any sale or conveyance of all or substantially all of
the assets of the  Company  other  than in  connection  with a plan of  complete
liquidation of the Company, then as a condition of such consolidation, merger or
sale or conveyance,  adequate  provision will be made whereby the holder of this
Warrant will have the right to acquire and receive upon exercise of this Warrant
in lieu of the shares of Common Stock  immediately  theretofore  acquirable upon
the exercise of this Warrant, such shares of stock,  securities or assets as may
be issued or payable  with respect to or in exchange for the number of shares of
Common Stock immediately  theretofore acquirable and receivable upon exercise of
this  Warrant had such  consolidation,  merger or sale or  conveyance  not taken
place. In any such case, the Company will make  appropriate  provision to insure
that the provisions of this Paragraph 4 hereof will  thereafter be applicable as
nearly as may be in  relation  to any shares of stock or  securities  thereafter
deliverable  upon the exercise of this Warrant.  The Company will not effect any
consolidation,  merger or sale or  conveyance  unless prior to the  consummation
thereof,  the successor or acquiring  entity (if other than the Company) and, if
an entity  different  from the successor or acquiring  entity,  the entity whose
capital  stock or assets  the  holders of the Common  Stock of the  Company  are
entitled  to  receive  as a  result  of such  consolidation,  merger  or sale or
conveyance  assumes by written instrument the obligations under this Paragraph 4
and the  obligations  to deliver to the holder of this  Warrant  such  shares of
stock, securities or assets as, in accordance with the foregoing provisions, the
holder may be entitled to acquire.

                  (f) Distribution of Assets.  In case the Company shall declare
or make any  distribution  of its assets  (including  cash) to holders of Common
Stock  as a  partial  liquidating  dividend,  by way of  return  of  capital  or
otherwise,  then, after the date of record for determining stockholders entitled
to such distribution,  but prior to the date of distribution, the holder of this
Warrant  shall be entitled upon exercise of this Warrant for the purchase of any
or all of the shares of Common Stock  subject  hereto,  to receive the amount of
such assets which would have been payable to the holder had such holder been the
holder of such shares of Common  Stock on the record date for the  determination
of stockholders entitled to such distribution.

                  (g) Notice of  Adjustment.  Upon the  occurrence  of any event
which  requires any  adjustment of the Exercise  Price,  then,  and in each such
case, the Company shall give notice thereof to the holder of this Warrant, which
notice shall state the Exercise  Price  resulting  from such  adjustment and the
increase or decrease in the number of Warrant  Shares  purchasable at such price
upon exercise,  setting forth in reasonable detail the method of calculation and
the facts  upon which  such  calculation  is based.  Such  calculation  shall be
certified by the chief financial officer of the Company.

                  (h) Minimum Adjustment of Exercise Price. No adjustment of the
Exercise  Price shall be made in an amount of less than 1% of the Exercise Price
in effect at the time such adjustment is otherwise  required to be made, but any
such lesser  adjustment  shall be carried  forward and shall be made at the time
and  together  with the next  subsequent  adjustment  which,  together  with any
adjustments  so  carried  forward,  shall  amount  to not  less  than 1% of such
Exercise Price.

                  (i) No Fractional Shares. No fractional shares of Common Stock
are to be issued upon the exercise of this Warrant,  but the Company shall pay a
cash  adjustment  in respect of any  fractional  share which would  otherwise be
issuable in an amount equal to the same  fraction of the Market Price of a share
of Common Stock on the date of such exercise.

                  (j)      Other Notices.  In case at any time:

<PAGE>

                           (i) the Company  shall  declare any dividend upon the
Common  Stock  payable  in  shares  of  stock of any  class  or make  any  other
distribution  (including  dividends  or  distributions  payable  in cash  out of
retained earnings) to the holders of the Common Stock;

                           (ii) the  Company  shall offer for  subscription  pro
rata to the holders of the Common  Stock any  additional  shares of stock of any
class or other rights;

                           (iii) there shall be any  capital  reorganization  of
the Company, or reclassification of the Common Stock, or consolidation or merger
of the Company with or into, or sale of all or substantially  all its assets to,
another corporation or entity; or

                           (iv)  there  shall  be  a  voluntary  or  involuntary
dissolution, liquidation or winding-up of the Company;

then,  in each such case,  the Company  shall give to the holder of this Warrant
(a) notice of the date on which the books of the Company shall close or a record
shall be taken for  determining  the holders of Common Stock entitled to receive
any such dividend,  distribution,  or subscription rights or for determining the
holders of Common Stock entitled to vote in respect of any such  reorganization,
reclassification,  consolidation,  merger,  sale,  dissolution,  liquidation  or
winding-up  and (b) in the  case of any such  reorganization,  reclassification,
consolidation,  merger, sale, dissolution,  liquidation or winding-up, notice of
the date (or,  if not then  known,  a  reasonable  approximation  thereof by the
Company) when the same shall take place. Such notice shall also specify the date
on which the holders of Common Stock shall be entitled to receive such dividend,
distribution, or subscription rights or to exchange their Common Stock for stock
or  other  securities  or  property   deliverable   upon  such   reorganization,
reclassification,  consolidation,  merger, sale,  dissolution,  liquidation,  or
winding-up,  as the case  may be.  Such  notice  shall be given at least 30 days
prior to the record date or the date on which the Company's  books are closed in
respect thereto. Failure to give any such notice or any defect therein shall not
affect the validity of the proceedings  referred to in clauses (i), (ii),  (iii)
and (iv) above.

                  (k)  Certain   Events.   If  any  event  occurs  of  the  type
contemplated by the adjustment  provisions of this Paragraph 4 but not expressly
provided for by such  provisions,  the Company will give notice of such event as
provided in Paragraph  4(g) hereof,  and the Company's  Board of Directors  will
make an appropriate adjustment in the Exercise Price and the number of shares of
Common Stock  acquirable upon exercise of this Warrant so that the rights of the
holder shall be neither enhanced nor diminished by such event.

                  (l)      Certain Definitions.

                           (i) "Common Stock Deemed  Outstanding" shall mean the
number of shares of Common Stock actually  outstanding  (not including shares of
Common  Stock  held in the  treasury  of the  Company),  plus  (x)  pursuant  to
Paragraph  4(b)(i)  hereof,  the maximum  total number of shares of Common Stock
issuable upon the exercise of Options,  as of the date of such issuance or grant
of such  Options,  if any, and (y) pursuant to Paragraph  4(b)(ii)  hereof,  the
maximum  total  number of shares of Common Stock  issuable  upon  conversion  or
exchange  of  Convertible  Securities,  as of  the  date  of  issuance  of  such
Convertible Securities, if any.

                           (ii)  "Market  Price," as of any date,  (i) means the
average of the last  reported  sale prices for the shares of Common Stock on the
Nasdaq  National  Market  ("Nasdaq")  for the five (5) trading days  immediately
preceding such date as reported by Bloomberg  Financial Markets or an equivalent
reliable  reporting service mutually  acceptable to and hereafter  designated by
the holder of this Warrant and the Company  ("Bloomberg"),  or (ii) if Nasdaq is
not the principal  trading market for the shares of Common Stock, the average of
the last  reported sale prices on the  principal  trading  market for the Common
Stock during the same period as reported by Bloomberg,  or (iii) if market value
cannot be calculated as of such date on any of the foregoing  bases,  the Market
Price shall be the fair market value as  reasonably  determined in good faith by
(a)  the  Board  of   Directors   of  the   Company  or,  at  the  option  of  a
majority-in-interest  of the  holders  of the  outstanding  Warrants,  by (b) an
independent  investment bank of nationally  recognized standing in the valuation
of businesses similar to the business of the Company.  The manner of determining
the Market Price of the Common Stock set forth in the foregoing definition shall
apply with respect to any other security in respect of which a determination  as
to market value must be made hereunder.

<PAGE>

                           (iii) "Common  Stock," for purposes of this Paragraph
4,  includes the Common  Stock,  par value $.001 per share,  and any  additional
class  of  stock  of  the  Company  having  no  preference  as to  dividends  or
distributions on liquidation,  provided that the shares purchasable  pursuant to
this  Warrant  shall  include only shares of Common  Stock,  par value $.001 per
share, in respect of which this Warrant is exercisable, or shares resulting from
any  subdivision  or  combination  of such Common  Stock,  or in the case of any
reorganization,   reclassification,   consolidation,  merger,  or  sale  of  the
character referred to in Paragraph 4(e) hereof, the stock or other securities or
property provided for in such Paragraph.

         5. Issue Tax. The issuance of certificates  for Warrant Shares upon the
exercise  of this  Warrant  shall be made  without  charge to the holder of this
Warrant or such shares for any issuance  tax or other costs in respect  thereof,
provided  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
certificate in a name other than the holder of this Warrant.

         6. No Rights or Liabilities  as a  Shareholder.  This Warrant shall not
entitle the holder  hereof to any voting rights or other rights as a shareholder
of the  Company.  No provision of this  Warrant,  in the absence of  affirmative
action by the holder hereof to purchase Warrant Shares,  and no mere enumeration
herein of the rights or privileges of the holder hereof,  shall give rise to any
liability  of such  holder for the  Exercise  Price or as a  shareholder  of the
Company,  whether  such  liability is asserted by the Company or by creditors of
the Company.

         7.       Transfer, Exchange, and Replacement of Warrant.

                  (a)  Restriction  on  Transfer.  This  Warrant  and the rights
granted  to the  holder  hereof  are  transferable,  in whole  or in part,  upon
surrender of this Warrant,  together with a properly executed  assignment in the
form  attached  hereto,  at the office or agency of the  Company  referred to in
Paragraph 7(e) below,  provided,  however, that any transfer or assignment shall
be subject  to the  conditions  set forth in  Paragraph  7(f)  hereof and to the
applicable   provisions  of  the  Securities  Purchase   Agreement.   Until  due
presentment  for  registration  of  transfer  on the books of the  Company,  the
Company may treat the  registered  holder  hereof as the owner and holder hereof
for all  purposes,  and the  Company  shall not be affected by any notice to the
contrary.  Notwithstanding  anything  to  the  contrary  contained  herein,  the
registration  rights  described in Paragraph 8 are assignable only in accordance
with the provisions of that certain  Registration Rights Agreement,  dated as of
January 26,  2000,  by and among the Company and the other  signatories  thereto
(the "Registration Rights Agreement").

                  (b) Warrant  Exchangeable  for Different  Denominations.  This
Warrant is  exchangeable,  upon the surrender hereof by the holder hereof at the
office or agency of the Company  referred to in  Paragraph  7(e) below,  for new
Warrants of like tenor  representing  in the aggregate the right to purchase the
number of shares of Common Stock which may be purchased hereunder,  each of such
new Warrants to represent  the right to purchase  such number of shares as shall
be designated by the holder hereof at the time of such surrender.

                  (c)   Replacement   of  Warrant.   Upon  receipt  of  evidence
reasonably  satisfactory  to the  Company of the loss,  theft,  destruction,  or
mutilation  of this  Warrant  and,  in the  case of any  such  loss,  theft,  or
destruction,  upon delivery of an indemnity agreement reasonably satisfactory in
form and amount to the  Company,  or, in the case of any such  mutilation,  upon
surrender and cancellation of this Warrant,  the Company,  at its expense,  will
execute and deliver, in lieu thereof, a new Warrant of like tenor.

<PAGE>

                  (d) Cancellation;  Payment of Expenses.  Upon the surrender of
this Warrant in  connection  with any  transfer,  exchange,  or  replacement  as
provided in this  Paragraph  7, this Warrant  shall be promptly  canceled by the
Company.  The Company shall pay all taxes (other than securities transfer taxes)
and all other  expenses  (other  than legal  expenses,  if any,  incurred by the
holder or transferees)  and charges payable in connection with the  preparation,
execution, and delivery of Warrants pursuant to this Paragraph 7.

                  (e)  Register.  The Company shall  maintain,  at its principal
executive  offices  (or such  other  office or agency of the  Company  as it may
designate by notice to the holder hereof), a register for this Warrant, in which
the Company  shall  record the name and address of the person in whose name this
Warrant has been issued,  as well as the name and address of each transferee and
each prior owner of this Warrant.

                  (f) Exercise or Transfer Without Registration. If, at the time
of the surrender of this Warrant in connection with any exercise,  transfer,  or
exchange of this  Warrant,  this Warrant (or, in the case of any  exercise,  the
Warrant Shares issuable hereunder), shall not be registered under the Securities
Act and under  applicable  state  securities  or blue sky laws,  the Company may
require, as a condition of allowing such exercise,  transfer,  or exchange,  (i)
that the holder or transferee of this  Warrant,  as the case may be,  furnish to
the  Company a written  opinion  of  counsel,  which  opinion  and  counsel  are
acceptable  to the  Company,  to the effect  that such  exercise,  transfer,  or
exchange may be made without  registration  under said Act and under  applicable
state  securities or blue sky laws,  (ii) that the holder or transferee  execute
and deliver to the Company an investment letter in form and substance acceptable
to the Company and (iii) that the  transferee  be an  "accredited  investor"  as
defined in Rule 501(a)  promulgated  under the Securities Act;  provided that no
such opinion,  letter or status as an "accredited investor" shall be required in
connection  with a transfer  pursuant to Rule 144 under the Securities  Act. The
first holder of this Warrant, by taking and holding the same,  represents to the
Company that such holder is acquiring this Warrant for investment and not with a
view to the distribution thereof.

         8. Registration Rights. The initial holder of this Warrant (and certain
assignees  thereof) is entitled  to the benefit of such  registration  rights in
respect of the Warrant Shares as are set forth in Section 2 of the  Registration
Rights Agreement.

<PAGE>

         9. Notices. All notices, requests, and other communications required or
permitted to be given or delivered hereunder to the holder of this Warrant shall
be in writing, and shall be personally delivered,  or shall be sent by certified
or registered mail or by recognized overnight mail courier,  postage prepaid and
addressed,  to such holder at the address  shown for such holder on the books of
the  Company,  or at such  other  address as shall  have been  furnished  to the
Company  by  notice  from  such  holder.  All  notices,   requests,   and  other
communications  required or permitted to be given or delivered  hereunder to the
Company shall be in writing, and shall be personally delivered, or shall be sent
by certified or registered mail or by recognized overnight mail courier, postage
prepaid and  addressed,  to the office of the Company at 1250 24th  Street,  NW,
Suite 725, Washington, DC 20037, Attention:  Chief Executive Officer, or at such
other  address as shall  have been  furnished  to the holder of this  Warrant by
notice from the Company. Any such notice, request, or other communication may be
sent by facsimile, but shall in such case be subsequently confirmed by a writing
personally  delivered or sent by certified or  registered  mail or by recognized
overnight  mail  courier as provided  above.  All notices,  requests,  and other
communications  shall be  deemed to have  been  given  either at the time of the
receipt  thereof by the person entitled to receive such notice at the address of
such person for  purposes of this  Paragraph 9, or, if mailed by  registered  or
certified mail or with a recognized overnight mail courier upon deposit with the
United States Post Office or such overnight mail courier,  if postage is prepaid
and the mailing is properly addressed, as the case may be.

         10.  Governing  Law. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE  APPLICABLE TO AGREEMENTS MADE
AND TO BE PERFORMED IN THE STATE OF DELAWARE  (WITHOUT  REGARD TO  PRINCIPLES OF
CONFLICT OF LAWS). BOTH PARTIES  IRREVOCABLY  CONSENT TO THE JURISDICTION OF THE
UNITED  STATES  FEDERAL  COURTS AND THE STATE  COURTS  LOCATED IN DELAWARE  WITH
RESPECT TO ANY SUIT OR PROCEEDING BASED ON OR ARISING UNDER THIS AGREEMENT,  THE
AGREEMENTS ENTERED INTO IN CONNECTION HEREWITH OR THE TRANSACTIONS  CONTEMPLATED
HEREBY OR THEREBY AND IRREVOCABLY  AGREE THAT ALL CLAIMS IN RESPECT OF SUCH SUIT
OR PROCEEDING MAY BE DETERMINED IN SUCH COURTS.  BOTH PARTIES  IRREVOCABLY WAIVE
THE  DEFENSE  OF AN  INCONVENIENT  FORUM  TO THE  MAINTENANCE  OF  SUCH  SUIT OR
PROCEEDING.  BOTH  PARTIES  FURTHER  AGREE THAT  SERVICE OF PROCESS UPON A PARTY
MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF
PROCESS  UPON THE PARTY IN ANY SUCH SUIT OR  PROCEEDING.  NOTHING  HEREIN  SHALL
AFFECT EITHER  PARTY'S  RIGHT TO SERVE PROCESS IN ANY OTHER MANNER  PERMITTED BY
LAW. BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR
PROCEEDING  SHALL BE CONCLUSIVE  AND MAY BE ENFORCED IN OTHER  JURISDICTIONS  BY
SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER.

         11.      Miscellaneous.

                  (a) Amendments. This Warrant and any provision hereof may only
be amended by an  instrument  in writing  signed by the  Company  and the holder
hereof.

                  (b)  Descriptive  Headings.  The  descriptive  headings of the
several  paragraphs of this Warrant are inserted for purposes of reference only,
and shall not  affect  the  meaning  or  construction  of any of the  provisions
hereof.

<PAGE>

                  (c)  Cashless  Exercise.   Notwithstanding   anything  to  the
contrary  contained in this Warrant,  if the resale of the Warrant Shares by the
holder is not then registered  pursuant to an effective  registration  statement
under the  Securities  Act,  this Warrant may be exercised by  presentation  and
surrender of this Warrant to the Company at its principal executive offices with
a written  notice of the  holder's  intention  to  effect a  cashless  exercise,
including  a  calculation  of the number of shares of Common  Stock to be issued
upon such exercise in accordance with the terms hereof (a "Cashless  Exercise").
In the event of a Cashless  Exercise,  in lieu of paying the  Exercise  Price in
cash,  the holder  shall  surrender  this  Warrant  for that number of shares of
Common Stock  determined by multiplying the number of Warrant Shares to which it
would  otherwise be entitled by a fraction,  the numerator of which shall be the
difference  between the then current  Market Price per share of the Common Stock
and the Exercise  Price,  and the denominator of which shall be the then current
Market Price per share of Common Stock.

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly
authorized officer.

                                       EGLOBE, INC.

                                       By: /s/ Christopher J. Vizas
                                       -----------------------------
                                                Christopher J. Vizas
                                                Chairman  of the Board and
                                                Chief Executive Officer

                                       Dated as of January 26, 2000

<PAGE>

                           FORM OF EXERCISE AGREEMENT

                                                       Dated:  ________ __, 2000

To: EGLOBE, INC.

         The  undersigned,  pursuant to the  provisions  set forth in the within
Warrant,  hereby agrees to purchase  ________  shares of Common Stock covered by
such Warrant, and makes payment herewith in full therefor at the price per share
provided by such Warrant in cash or by  certified or official  bank check in the
amount of,  or, if the resale of such  Common  Stock by the  undersigned  is not
currently registered pursuant to an effective  registration  statement under the
Securities  Act of 1933, as amended,  by surrender of  securities  issued by the
Company  (including a portion of the Warrant) having a market value (in the case
of a portion of this Warrant, determined in accordance with Section 11(c) of the
Warrant) equal to $_________.  Please issue a certificate  or  certificates  for
such shares of Common  Stock in the name of and pay any cash for any  fractional
share to:

                     Name:        ___________________________________

                     Signature:      ________________________________
                     Address:        ________________________________
                                     ________________________________

                     Note:    The above signature should
                              correspond exactly with the name
                              on the face of the within Warrant.

and,  if said  number  of shares of  Common  Stock  shall not be all the  shares
purchasable under the within Warrant,  a new Warrant is to be issued in the name
of said undersigned  covering the balance of the shares  purchasable  thereunder
less any fraction of a share paid in cash.

<PAGE>

                               FORM OF ASSIGNMENT

         FOR  VALUE  RECEIVED,   the  undersigned  hereby  sells,  assigns,  and
transfers  all the  rights of the  undersigned  under the within  Warrant,  with
respect  to the  number  of shares of Common  Stock  covered  thereby  set forth
hereinbelow, to:

Name of Assignee                     Address                        No of Shares

,   and   hereby   irrevocably    constitutes   and   appoints    ______________
________________________  as agent and attorney-in-fact to transfer said Warrant
on the books of the within-named corporation, with full power of substitution in
the premises.

Dated:  ________ __, 2000

In the presence of:

-------------------------

                     Name:        ___________________________________

                     Signature:      ________________________________
                     Address:        ________________________________
                                     ________________________________

                     Note:    The above signature should
                              correspond exactly with the name
                              on the face of the within Warrant.

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