Document:

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                                                                     EXHIBIT 4.1

                          NHANCEMENT TECHNOLOGIES INC.

                           CERTIFICATE OF DESIGNATION

                                       FOR

                            SERIES B PREFERRED STOCK

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

                             Pursuant to Section 151
             of the General Corporation Law of the State of Delaware

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

                  NHancement Technologies Inc. (the "Corporation"), a
corporation organized and existing under the General Corporation Law of the
State of Delaware (the "DGCL"), does hereby certify that pursuant to the
provisions of Section 151 of the DGCL, the Board of Directors of the
Corporation, at a meeting duly convened on September 6, 2000 at which a quorum
was present at all times, adopted the following resolution, which resolution
remains in full force and effect as of the date hereof:

                  WHEREAS, the Board of Directors of the Corporation is
authorized, within the limitations and restrictions stated in the Corporation's
Amended and Restated Certificate of Incorporation (the "Charter"), to fix by
resolution or resolutions the designation of each class or series of Preferred
Stock (the "Preferred Stock") and the voting powers, and any designations,
preferences, and relative, participating, optional or other special rights of
any such class or series of Preferred Stock, as well as such other provisions
with regard to redemption (at the option of the holders thereof and/or at the
option of the Corporation), dividends, dissolution or the distribution of
assets, conversion or exchange, and any qualifications or restrictions thereof
or such other subjects or matters as shall be stated and expressed in the
resolution or resolutions providing for the issue of such stock adopted by the
Board of Directors; and

                  WHEREAS, it is the desire of the Board of Directors of the
Corporation, pursuant to such authority, to authorize and fix the terms of the
series of Preferred Stock designated as Series B Preferred Stock (the "Series B
Preferred Stock"):

                  NOW THEREFORE, be it resolved, that the terms and provisions
of such series and all other right or preferences granted to or imposed upon
such series or the holders thereof are as herein set forth:

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                  1. Designation. A total of one hundred twenty thousand
(120,000) shares, $0.01 par value per share, shall be designated as "Series B
Preferred Stock."

                  2. Rank. The Series B Preferred Stock shall, with respect to
rights to dividends and rights upon liquidation, dissolution and winding-up of
the Corporation, rank pari passu with all other series of preferred stock or
other class of security expressly ranking pari passu, if any (such classes or
series, the "Pari Passu Classes") with the Series B Preferred Stock of the
Corporation and prior to all series or classes of Common Stock of the
Corporation ("Common Stock"). Nothing contained herein shall be construed to
prohibit the Corporation from authorizing or issuing, in accordance with its
Certificate of Incorporation and bylaws, as the same may be amended and in
effect from time to time, any classes or series of equity securities of the
Corporation ranking senior to or pari passu with the Series B Preferred Stock
with respect to rights to dividends and rights upon liquidation, dissolution and
winding-up of the Corporation or both.

                  3. Dividends. The holders of shares of Series B Preferred
Stock shall be entitled to receive dividends, out of any assets legally
available therefor, prior and in preference to any declaration or payment of any
dividend (payable other than in Common Stock or other securities and rights
convertible into or entitling the holder thereof to receive, directly or
indirectly, additional shares of Common Stock of this Corporation) on the Common
Stock of this Corporation, at the rate of 5.00% of $100.00 (such $100.00, the
"Original Issue Price") (as adjusted for stock splits, stock dividends,
recapitalizations and the like), payable in cash or capital stock of the
Corporation (as determined by the Board of Directors of the Corporation) and
payable quarterly in arrears, when, as and if declared by the Board of
Directors. After such dividends are declared and paid upon the shares of the
Series B Preferred Stock, dividends may be declared and paid on the Common Stock
if at the same time equivalent dividends are declared and paid to holders of the
Series B Preferred Stock (such dividends to be paid as determined on an as
converted basis for the Series B Preferred Stock). Such dividends shall not be
cumulative.

                  4. Liquidation Preference.

                           (a) Subject to the rights of holders of any class of
capital stock or series thereof expressly ranking senior to the Series B
Preferred Stock, upon any voluntary or involuntary liquidation, dissolution or
winding up of the affairs of the Corporation, the holder of each share of the
Series B Preferred Stock then outstanding shall be entitled to be paid out of
the assets of the Corporation available for distribution to its stockholders an
amount equal to the Original Issue Price for each outstanding share of Series B
Preferred Stock, plus declared but unpaid dividends on such share (subject to
adjustment of such fixed dollar amounts for any stock splits, stock dividends,
combinations, recapitalizations or the like). If the assets of the Corporation
are not sufficient to pay in full the payments payable to the holders of
outstanding shares of Series B Preferred Stock and any Pari Passu Classes upon
the liquidation, dissolution or winding up of the affairs of the Corporation,
then the holders of all such shares shall share

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ratably with all other holders of shares of Series B Preferred Stock and Pari
Passu Classes in such distribution of assets in proportion to the Liquidation
Preference of the respective shares.

                           (b) Upon completion of the distribution required by
subsection (a) of this Section 4 and any other distribution that may be required
with respect to series of Series B Preferred Stock that may from time to time
come into existence, all of the remaining assets of this Corporation available
for distribution to stockholders shall be distributed among the holders of
Common Stock pro rata based on the number of shares of Common Stock held by
each.

                           (c) (i) For purposes of this Section 4, a
liquidation, dissolution or winding up of this Corporation shall be deemed to be
occasioned by, or to include (unless the holders of at least a majority of the
Series B Preferred Stock then outstanding shall determine otherwise), (A) the
acquisition of this Corporation by another entity by means of any transaction or
series of related transactions (including, without limitation, any
reorganization, merger or consolidation) that results in the transfer of fifty
percent (50%) or more of the outstanding voting power of this Corporation; or
(B) a sale of all or substantially all of the assets of this Corporation.

                                    (ii) In any of such events, if the
consideration received by this Corporation is other than cash, its value will be
deemed its fair market value. Any securities shall be valued as follows:

                                            (A) Securities not subject to
investment letter or other similar restrictions on free marketability covered by
(B) below:

                                                     (1) If traded on a
securities exchange or through the Nasdaq National Market, the value shall be
deemed to be the average of the closing prices of the securities on such
exchange or system over the thirty (30) day period ending three (3) days prior
to the closing;

                                                     (2)  If actively traded
over-the-counter, the value shall be deemed to be the average of the closing bid
or sale prices (whichever is applicable) over the thirty (30) day period ending
three (3) days prior to the closing; and

                                                     (3) If there is no active
public market, the value shall be the fair market value thereof, as mutually
determined by this Corporation and the holders of at least a majority of the
voting power of all then outstanding shares of Series B Preferred Stock.

                                            (B) The method of valuation of
securities subject to investment letter or other restrictions on free
marketability (other than restrictions arising solely by virtue of a
stockholder's status as an affiliate or former affiliate) shall be to make an
appropriate discount from the market value determined as above in (A) (1), (2)
or (3) to reflect the approximate fair market value thereof, as mutually
determined by this Corporation and the holders of at least a majority of the
voting power of all then outstanding shares of such Series B Preferred Stock.

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                  5. Conversion. The holders of the Series B Preferred Stock
shall have conversion rights as follows (the "Conversion Rights"):

                  (a) Right to Convert. Each share of Series B Preferred Stock
shall be convertible, at the option of the holder thereof, at any time after the
date of issuance of such share into such number of fully paid and nonassessable
shares of Common Stock as is determined by dividing (i) the Original Issue Price
by (ii) the lesser of (A) $13.50 (subject to adjustment for stock splits and the
like) or (B) 90% of the average of the closing bid prices for the ten (10)
trading days immediately preceding the date on which such holder is deemed to
have converted such Series B Preferred Stock pursuant to Section 5(a) or 5(b)
hereof; provided, however that the Conversion Price shall not be less than
$10.00 (subject to adjustment for stock splits and the like) (as adjusted
pursuant to Section 5(d) hereof, the "Conversion Price"). Such conversion shall
be deemed to have been made immediately prior to the close of business on the
date of delivery of notice by the holder to the Corporation stating that such
holder desires to convert the Series B Preferred Stock as contemplated by this
Section 5(a), and the person or persons entitled to receive the shares of Common
Stock issuable upon such conversion shall be treated for all purposes as the
record holder or holders of such shares of Common Stock as of such date.

                  (b) Automatic Conversion. At any time after the third
anniversary of the first issuance of the Series B Preferred Stock by the
Corporation, the Corporation may require that all, but not less than all, of the
outstanding shares of Series B Preferred Stock be converted into shares of
Common Stock at the Conversion Prices then in effect. If the Corporation desires
to convert the Series B Preferred Stock as contemplated by this Section 5(b),
the Corporation shall deliver written notice to the holders of Series B
Preferred Stock (the "Conversion Notice") setting forth its desire to so convert
such shares and the Conversion Price therefor. Within fifteen (15) days
following receipt of such Conversion Notice, each holder of Series B Preferred
Stock shall surrender the certificate or certificates representing all of such
holder's Series B Preferred Stock, duly endorsed, at the office of this
Corporation or of any transfer agent for the Series B Preferred Stock. This
Corporation shall, as soon as practicable thereafter, issue and deliver at such
office to such holder of Series B Preferred Stock, or to the nominee or nominees
of such holder, a certificate or certificates for the number of shares of Common
Stock to which such holder shall be entitled as aforesaid. Such conversion shall
be deemed to have been made immediately prior to the close of business on the
date of delivery of the Conversion Notice, and the person or persons entitled to
receive the shares of Common Stock issuable upon such conversion shall be
treated for all purposes as the record holder or holders of such shares of
Common Stock as of such date.

         (c) Mechanism of Conversion. Before any holder of Series B Preferred
Stock pursuant to Section 5(a) above, shall be entitled to convert the same into
shares of Common Stock, the holder shall surrender the certificate or
certificates therefor, duly endorsed, at the office of this Corporation or of
any transfer agent for the Series B Preferred Stock, and shall give written
notice to this Corporation at its principal corporate office, of the election to
convert the same and shall state therein the name or names in which the
certificate or certificates for shares

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of Common Stock are to be issued. Upon conversion of only a portion of the
number of shares covered by a certificate representing shares of Series B
Preferred Stock surrendered for conversion, the Corporation shall issue and
deliver to or upon the written order of the holder of the certificate so
surrendered for conversion, at the expense of the Corporation, a new certificate
covering the number of shares of Series B Preferred Stock representing the
unconverted portion of the certificate so surrendered. This Corporation shall,
as soon as practicable thereafter, issue and deliver at such office to such
holder of Series B Preferred Stock, or to the nominee or nominees of such
holder, a certificate or certificates for the number of shares of Common Stock
to which such holder shall be entitled as aforesaid. Such conversion shall be
deemed to have been made immediately prior to the close of business on the date
of such surrender of the shares of Series B Preferred Stock to be converted, and
the person or persons entitled to receive the shares of Common Stock issuable
upon such conversion shall be treated for all purposes as the record holder or
holders of such shares of Common Stock as of such date. If the conversion is in
connection with an underwritten offering of securities registered pursuant to
the Securities Act of 1933, the conversion may, at the option of any holder
tendering Series B Preferred Stock for conversion, be conditioned upon the
closing with the underwriters of the sale of securities pursuant to such
offering, in which event the person(s) entitled to receive the Common Stock upon
such conversion of the Series B Preferred Stock shall not be deemed to have
converted such Series B Preferred Stock until immediately prior to the closing
of such sale of securities.

                  (d) Conversion Price Adjustments. The Conversion Price shall
be adjusted, from time to time by the Board of Directors of the Corporation, to
reflect the effect of any stock dividend, stock split, reverse stock split,
merger, consolidation, recapitalization (other than the issuance of Common Stock
in exchange for indebtedness or other obligation of similar value),
reorganization or other similar transaction affecting the Corporation so that
immediately following such event the holders of the Series B Preferred Stock
shall be entitled to receive upon conversion thereof the kind and amount of
shares of securities of the Corporation and other property which they would have
owned or been entitled to receive upon or by reason of such event if such shares
of Series B Preferred Stock had been converted to Common Stock immediately
before the record date (or, if no record date, the effective date) for such
event. An adjustment made pursuant to this Section 5(b) shall become effective
immediately after the opening of business on the day next following the record
date in the case of a dividend or distribution and shall become effective
immediately after the opening of business on the day next following the
effective date in the case of an applicable subdivision, combination,
reclassification, merger, recapitalization, reorganization or other similar
transaction.

                  (e) No Impairment. This Corporation will not, by amendment of
its Charter or through any reorganization, recapitalization, 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 hereunder by this Corporation, but will at
all times in good faith assist in the carrying out of all the provisions of this
Section 5 and in the taking of all such action as may be necessary or
appropriate in order to protect the Conversion Rights of the holders of the
Series B Preferred Stock against impairment.

                  (f) No Fractional Shares and Certificate as to Adjustments.

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                           (i) No fractional shares shall be issued upon
conversion of any share or shares of the Series B Preferred Stock, and the
number of shares of Common Stock to be issued shall be rounded down to the
nearest whole share. Whether or not fractional shares are issuable upon such
conversion shall be determined on the basis of the total number of shares of
Series B Preferred Stock the holder is at the time converting into Common Stock
and the number of shares of Common Stock issuable upon such aggregate
conversion.

                           (ii) Upon the occurrence of each adjustment or
readjustment of the Conversion Price of Series B Preferred Stock pursuant to
this Section 5, this 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 B Preferred Stock a certificate setting forth
such adjustment or readjustment and showing in detail the facts upon which such
adjustment or readjustment is based. This Corporation shall, upon the written
request at any time of any holder of Series B Preferred Stock, furnish or cause
to be furnished to such holder a like certificate setting forth (A) such
adjustment and readjustment, (B) the Conversion Price for the Series B Preferred
Stock at the time in effect, and (C) the number of shares of Common Stock and
the amount, if any, of other property which at the time would be received upon
the conversion of a share of Series B Preferred Stock.

                  (g) Notices of Record Date. In the event of any taking by this
Corporation of a record of the holders of any class of securities for the
purpose of determining the holders thereof who are entitled to receive any
dividend (other than a cash dividend) or other distribution, any right to
subscribe for, purchase or otherwise acquire any shares of stock of any class or
any other securities or property, or to receive any other right, this
Corporation shall mail to each holder of Series B Preferred Stock, at least
twenty (20) days prior to the date specified therein, a notice specifying the
date on which any such record is to be taken for the purpose of such dividend,
distribution or right, and the amount and character of such dividend,
distribution or right.

                  (h) Reservation of Stock Issuable Upon Conversion. This
Corporation shall at all times reserve and keep available out of its authorized
but unissued shares of Common Stock, solely for the purpose of effecting the
conversion of the shares of the Series B Preferred Stock, such number of its
shares of Common Stock as shall from time to time be sufficient to effect the
conversion of all outstanding shares of the Series B Preferred Stock; and if at
any time the number of authorized but unissued shares of Common Stock shall not
be sufficient to effect the conversion of all then outstanding shares of the
Series B Preferred Stock, in addition to such other remedies as shall be
available to the holder of the shares of Series B Preferred Stock, this
Corporation will take such corporate action as may, in the opinion of its
counsel, be necessary to increase its authorized but unissued shares of Common
Stock to such number of shares as shall be sufficient for such purposes,
including, without limitation, engaging in commercially reasonable efforts to
obtain the requisite stockholder approval of any necessary amendment to this
certificate.

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         (i) Notices. Any notice required by the provisions of this Section 5 to
be given to the holders of shares of Series B Preferred Stock shall be deemed
given ten (10) business days after it is if deposited in the United States mail,
postage prepaid, and addressed to each holder of record at his address appearing
on the books of this Corporation.

                  6. Voting Rights. The holder of each share of Series B
Preferred Stock shall have the right to one vote for each share of Common Stock
into which such Series B Preferred Stock could then be converted, and with
respect to such vote, such holder shall have full voting rights and powers equal
to the voting rights and powers of the holders of Common Stock, and shall be
entitled, notwithstanding any provision hereof, to notice of any shareholders'
meeting in accordance with the Bylaws of this Corporation, and shall be entitled
to vote, together with holders of Common Stock, with respect to any question
upon which holders of Common Stock have the right to vote. Fractional votes
shall not, however, be permitted and any fractional voting rights available on
an as-converted basis (after aggregating all shares into which shares of Series
B Preferred Stock held by each holder could be converted) shall be rounded to be
nearest whole number (with one-half being rounded upward).

                  7. Status of Converted Stock. In the event any shares of
Series B Preferred Stock shall be converted pursuant to Section 5 hereof, the
shares so converted shall be canceled and shall not be issuable by the
Corporation, and the Corporation may take such appropriate corporate action as
may be necessary to reduce the number of authorized shares of the Corporation's
capital stock.

                  8. General Provisions.

                           (a) Amendment.  This Certificate of Designation
constitutes an agreement between the Corporation and the holders of the Series B
Preferred Stock. Except as otherwise set forth herein, it may be amended by vote
of the Board of Directors of the Corporation and the holders of at least 50% of
the outstanding shares of Series B Preferred Stock.

                           (b) Headings.  The headings of the paragraphs,
subparagraphs, clauses, and sub-clauses of this Certificate of Designation are
for convenience of reference only and shall not define, limit, or affect any of
the provisions hereof.

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                  IN WITNESS WHEREOF, the undersigned has caused this
certificate to be signed by its President and Secretary, respectively, this 12th
day of September 2000.

                                                     ---------------------------
                                                     Douglas S. Zorn, President

                                                     ---------------------------
                                                     John Zavoli, Secretary

                                       8<PAGE>   1
                                                                    EXHIBIT 10.1

                          NHANCEMENT TECHNOLOGIES INC.

                   SERIES B PREFERRED STOCK PURCHASE AGREEMENT

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

                                 October 31, 2000

<PAGE>   2
                                TABLE OF CONTENTS

                          NHANCEMENT TECHNOLOGIES INC.
                   SERIES B PREFERRED STOCK PURCHASE AGREEMENT

<TABLE>
<CAPTION>
                                                                                  PAGE
<S>                                                                                <C>
1. PURCHASE AND SALE OF STOCK......................................................1

   1.1      Sale and Issuance of Series B Preferred Stock..........................1
   1.2      Closings...............................................................1

2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY...................................2

   2.1      Organization, Good Standing and Qualification..........................2
   2.2      Capitalization and Voting Rights.......................................2
   2.3      Authorization..........................................................3
   2.4      Valid Issuance of Preferred and Common Stock...........................3
   2.5      Governmental Consents..................................................3
   2.6      Compliance with Other Instruments......................................4
   2.7      SEC Documents, Financial Statements....................................4

3. REPRESENTATIONS AND WARRANTIES OF THE INVESTORS.................................4

   3.1      Authorization..........................................................5
   3.2      Purchase Entirely for Own Account......................................5
   3.3      Disclosure of Information..............................................5
   3.4      Investment Experience..................................................5
   3.5      Accredited Investor....................................................5
   3.6      Restricted Securities..................................................5
   3.7      Further Limitations on Disposition.....................................5
   3.8      Legends. ..............................................................6
   3.9      Further Representations by Foreign Investors...........................6

4. COVENANTS OF THE COMPANY........................................................6

   4.1      Registration Rights....................................................6
   4.2      Reservation of Common Stock............................................7
   4.3      Listing of Common Stock................................................7
   4.4      Exchange Act Registration..............................................7

5. COVENANTS OF THE INVESTORS......................................................7

   5.1      Compliance with Law....................................................7
   5.2      No Short Sales.........................................................7

6. CONDITIONS OF INVESTOR'S OBLIGATIONS AT THE CLOSINGS............................8

   6.1      Representations and Warranties.........................................8
   6.2      Performance............................................................8
</TABLE>

                                      -i-
<PAGE>   3
                               TABLE OF CONTENTS
                                  (Continued)

<TABLE>
<CAPTION>
                                                                                  PAGE
<S>                                                                                <C>
   6.3      Compliance Certificate.................................................8
   6.4      Certificate of Designation.............................................8
   6.5      Registration Rights....................................................8

7. CONDITIONS OF THE COMPANY'S OBLIGATIONS AT THE CLOSINGS.........................8

   7.1      Representations and Warranties.........................................8
   7.2      Payment of Purchase Price..............................................8
   7.3      Registration Rights....................................................8

8. MISCELLANEOUS. .................................................................8

   8.1      Survival of Warranties.................................................8
   8.2      Successors and Assigns.................................................9
   8.3      Governing Law..........................................................9
   8.4      Counterparts...........................................................9
   8.5      Titles and Subtitles...................................................9
   8.6      Notices. ..............................................................9
   8.7      Finder's Fee...........................................................9
   8.8      Expenses...............................................................9
   8.9      Amendments and Waivers................................................10
   8.10     Severability..........................................................10
   8.11     Aggregation of Stock..................................................10
   8.12     Entire Agreement......................................................10
   8.13     California Commissioner of Corporations...............................10
</TABLE>

EXHIBIT A - Schedule of Investors
EXHIBIT B - Certificate of Designation
EXHIBIT C - Form of Shelf Registration Agreement

                                      -ii-

<PAGE>   4
                          NHANCEMENT TECHNOLOGIES INC.

                   SERIES B PREFERRED STOCK PURCHASE AGREEMENT

         THIS SERIES B PREFERRED STOCK PURCHASE AGREEMENT (this "Agreement") is
made as of October 31, 2000, by, between and among NHancement Technologies
Inc., a Delaware corporation (the "Company"), and the investors identified on
Exhibit A hereto, each of which is herein referred to as an "Investor."

                                        RECITAL

         The Company, whose stock is traded on the Nasdaq Small Cap Market (the
"Small Cap Market") under the symbol NHAN, desires to sell shares of its Series
B Preferred Stock to accredited investors in a private sale pursuant to the
terms hereof. The number of shares of Series B Preferred Stock to be sold
hereunder shall be less than 20% of all outstanding shares of capital stock of
the Company at the time of such sale.

         THE PARTIES HEREBY AGREE AS FOLLOWS:

         1. PURCHASE AND SALE OF STOCK.

                  1.1 Sale and Issuance of Series B Preferred Stock.

                           (a) The Company shall adopt and file with the
Secretary of State of the State of Delaware on or before the Initial Closing (as
defined below) a Certificate of Designation in the form attached hereto as
Exhibit B (the "Certificate").

                           (b) On or prior to each Closing (as defined in
Section 1.3), the Company shall have authorized (i) the sale and issuance to the
Investors of the Series B Preferred Stock and (ii) the reservation of the shares
of Common Stock to be issued upon conversion of such Series B Preferred Stock
(the "Conversion Shares"). The Series B Preferred Stock shall have the rights,
preferences, privileges and restrictions set forth in the Certificate.

                           (c) Subject to the terms and conditions of this
Agreement, each Investor agrees, severally and not jointly, to purchase at the
relevant Closing and the Company agrees to sell and issue to each Investor at
the relevant Closing, that number of shares of the Company's Series B Preferred
Stock set forth opposite each Investor's name on Exhibit A hereto for the
purchase price set forth thereon.

                  1.2 Closings.

                           (a) Closing. The initial purchase and sale of the
shares of Series B Preferred Stock set forth on Schedule A shall take place at
the offices of Morrison & Foerster LLP, 755 Page Mill Road, Palo Alto,
California, 94304, at 11:00 A.M., on October 31, 2000, or at such other time
and place as the Company and Investors acquiring in the aggregate more than

<PAGE>   5

half the shares of Series B Preferred Stock sold pursuant hereto mutually agree
upon orally or in writing (which time and place are designated as the "Initial
Closing"); provided, however, that the Company shall not hold an Initial Closing
until the aggregate purchase price of the Series B Preferred Stock to be sold
hereunder equals at least $7,000,000.

                           (b) Delivery. At the Initial Closing, the Company
shall deliver to each Investor a certificate representing the Stock that such
Investor is purchasing as listed on Schedule A against payment of the purchase
price of $100 per share by check or wire transfer.

                           (c) Subsequent Closings. The Company may sell up to
the balance of the authorized number of shares of Series B Preferred Stock not
sold at the Initial Closing to such purchasers as it shall select, at a price
not less than the price per share paid at the Initial Closing, provided that any
such sale shall be consummated not later than ninety (90) days after the Initial
Closing. The subsequent sale and purchase of Series B Preferred Stock hereunder
shall take place at such time and place as the Company and Investors acquiring
in the aggregate more than half the shares of Series B Preferred Stock sold in
such subsequent sale shall mutually agree upon orally or in writing (which time
and place, together with the Initial Closing, are designated as a "Closing").
Any such purchaser shall be deemed an Investor hereunder and under the Shelf
Registration Agreement (as defined below). At such subsequent Closing, the
Company shall deliver to each Investor a certificate representing the Stock that
such Investor is purchasing against payment of the purchase price therefor by
check or wire transfer.

         2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

         The Company hereby represents and warrants to each Investor that:

                  2.1  Organization, Good Standing and Qualification.

         The Company is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware and has all requisite
corporate power and authority to carry on its business as now conducted.

                  2.2 Capitalization and Voting Rights.

         The authorized capital of the Company will consist, as of August 31,
2000, of:

                           (a) Preferred Stock. Two Million (2,000,000) shares,
$.01 par value per share, of Preferred Stock (the "Preferred Stock") authorized,
of which one hundred twenty thousand (120,000) shares have been designated
Series B Preferred Stock (the "Series B Preferred Stock"), and up to all of
which may be sold pursuant to this Agreement. The rights, privileges and
preferences of the Series B Preferred Stock are as set forth in the Certificate.

                           (b) Common Stock. Twenty Million (20,000,000) shares,
$0.01 par value per share, of common stock ("Common Stock") authorized, of which
Twelve Million One-Hundred Thirty Thousand Four Hundred (12,130,400) shares are
issued and outstanding.

                                      -2-
<PAGE>   6

                           (c) Other Rights. Except for (i) the conversion
privileges of the Series B Preferred Stock, (ii) currently outstanding options
to purchase two million five-hundred ninety-four thousand three hundred
(2,594,300) shares of Common Stock granted to employees and other service
providers pursuant to the Company's stock option plans (the "Option Plans"), and
(iii) currently outstanding warrants to purchase one million seven-hundred
seventy-nine thousand six hundred (1,779,600) shares of Common Stock, there are
not outstanding any options, warrants, rights (including conversion or
preemptive rights) or agreements for the purchase or acquisition from the
Company of any shares of its capital stock. The Company has reserved an
additional one million one-hundred twenty-nine thousand two-hundred fifty
(1,129,250) shares of Common Stock for grant to employees and other service
providers pursuant to the Option Plans. In addition to the foregoing, the
Company may, in connection with this offering, issue shares of its Common Stock
and warrants to purchase shares of its Common Stock as a placement fee to Joseph
Stevens & Co.

                  2.3 Authorization. All corporate action on the part of the
Company, its officers and directors necessary for the authorization, execution
and delivery of this Agreement and the transaction contemplated hereby, the
performance of all obligations of the Company hereunder and thereunder and the
authorization, issuance (or reservation for issuance), sale and delivery of the
Series B Preferred Stock being sold hereunder and the Conversion Shares has been
taken or will be taken prior to the Initial Closing, and this Agreement,
constitutes valid and legally binding obligations of the Company, enforceable in
accordance with its respective terms, except (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, and other laws of general
application affecting enforcement of creditors' rights generally, and (ii) as
limited by laws relating to the availability of specific performance, injunctive
relief, or other equitable remedies.

                  2.4 Valid Issuance of Preferred and Common Stock. The Series B
Preferred Stock that is being purchased by the Investors hereunder, when issued,
sold and delivered in accordance with the terms of this Agreement for the
consideration expressed herein, will be duly and validly issued, fully paid and
nonassessable, and will be free of restrictions on transfer other than
restrictions on transfer under this Agreement, the Bylaws of the Company and
under applicable state and federal securities laws. The Conversion Shares have
been duly and validly reserved for issuance and, upon issuance in accordance
with the terms of the Amended Restated Certificate of Incorporation of the
Company (the "Charter"), will be duly and validly issued, fully paid, and
nonassessable and will be free of restrictions on transfer other than
restrictions on transfer under this Agreement, the Bylaws of the Company and
under applicable state and federal securities laws.

                  2.5 Governmental Consents. No consent, approval, order or
authorization of, or registration, qualification, designation, declaration or
filing with, any federal, state or local governmental authority on the part of
the Company is required in connection with the consummation of the transactions
contemplated by this Agreement, except for (i) the filing of the Certificate
with the Secretary of State of the State of Delaware, which filing shall be
effective before the Initial Closing, and (ii) the filing pursuant to Section
25102(f) of the California

                                      -3-
<PAGE>   7

Corporate Securities Law of 1968, as amended, and the rules thereunder, which
filing will be effected on a timely basis.

                  2.6 Compliance with Other Instruments. The execution, delivery
and performance of this Agreement by the Company and the consummation by the
Company of the transactions contemplated hereby do not (i) result in a violation
of the Charter or Bylaws or (ii) conflict with, or constitute a default (or an
event which with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which the Company is
a party, or result in a violation of any law, rule, regulation, order,
judgement, or decree applicable to the Company, or by which any property or any
asset of the Company is bound or affected (except for such conflicts, defaults,
terminations, amendments, accelerations, cancellations and violations as would
not, individually or in the aggregate, have this materially impair the Company's
ability to perform its obligations under Agreement).

                  2.7 SEC Documents, Financial Statements. Since January 1,
2000, the Company has timely filed reports, schedules, forms, statements and
other documents required to be filed by it with the Securities and Exchange
Commission (the "SEC") pursuant to the reporting requirements of Section 13 of
the Securities Exchange Act of 1934, as amended (the "Exchange Act") (all of the
foregoing filed prior to the date hereof being hereinafter referred to as the
"SEC Documents"). The Company has delivered (or made available on EDGAR) to the
Investor all of the information material to making a decision whether to
purchase the Series B Preferred Stock, including true and complete copies of the
SEC Documents. As of their respective dates, the SEC Documents complied in all
material respects with the requirements of the Exchange Act and the rules and
regulations of the SEC promulgated thereunder applicable to such SEC Documents,
and none of the SEC Documents (when read together with all exhibits included
therein and financial statement schedules thereto and documents (other than
exhibits) incorporated by reference) contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the
circumstances in which they were made, not misleading. The financial statements
of the Company included in the SEC Documents comply as to form in all material
respects with applicable accounting requirements and the published rules and
regulations of the SEC with respect thereto. Such financial statements have been
prepared in accordance with generally accepted accounting principles applied on
a consistent basis during the periods involved (except (i) as may be otherwise
indicated in such financial statements or the notes thereto or (ii) or in the
case of unaudited interim statements, to the extent they may not include
footnotes or may be condensed or summary statements) and fairly present in all
material respects the consolidated financial position of the Company as of the
dates thereof and the consolidated results of their operations and cash flows
for the periods then ended (subject, in the case of unaudited statements, to
normal year-end audit adjustments).

         3. REPRESENTATIONS AND WARRANTIES OF THE INVESTORS.

         Each Investor, severally and not jointly, hereby represents and
warrants to the Company that:

                                      -4-
<PAGE>   8

                  3.1 Authorization. Such Investor has full power and authority
to enter into this Agreement and the agreements contemplated hereby, and each
such agreement constitutes the valid and legally binding obligations of such
Investor, enforceable in accordance with its terms, except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of
general application affecting enforcement of creditors' rights generally, and
(ii) as limited by laws relating to the availability of specific performance,
injunctive relief, or other equitable remedies.

                  3.2 Purchase Entirely for Own Account This Agreement is made
with such Investor in reliance upon such Investor's representation to the
Company, which by such Investor's execution of this Agreement such Investor
hereby confirms, that the Series B Preferred Stock to be received by such
Investor and the Conversion Shares (collectively, the "Securities") will be
acquired for investment for such Investor's own account, not as a nominee or
agent, and not with a view to the resale or distribution of any part thereof,
and that such Investor has no present intention of selling, granting any
participation in, or otherwise distributing the same. By executing this
Agreement, such Investor further represents that such Investor does not have any
contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participations to such person or to any third person, with
respect to any of the Securities.

                  3.3 Disclosure of Information. Such Investor represents that
it has had an opportunity to ask questions and receive answers from the Company
regarding the terms and conditions of the offering of the Series B Preferred
Stock and the business, properties, prospects and financial condition of the
Company. The foregoing, however, does not limit or modify the representations
and warranties of the Company in Section 2 of this Agreement or the right of the
Investors to rely thereon.

                  3.4 Investment Experience. Such Investor acknowledges that it
is able to fend for itself, can bear the economic risk of its investment, and
has such knowledge and experience in financial or business matters that it is
capable of evaluating the merits and risks of the investment in the Series B
Preferred Stock. If other than an individual, Investor represents that the
entity is entirely composed of accredited investors as defined in Section 3.5,
or the entity has not been organized for the purpose of acquiring the Series B
Preferred Stock.

                  3.5 Accredited Investor. Such Investor is an "accredited
investor" within the meaning of SEC Rule 501 of Regulation D, as presently in
effect.

                  3.6 Restricted Securities. Such Investor understands that the
Securities it is purchasing are characterized as "restricted securities" under
the federal securities laws inasmuch as they are being acquired from the Company
in a transaction not involving a public offering and that under such laws and
applicable regulations such securities may be resold without registration under
the Act, only in certain limited circumstances.

                  3.7 Further Limitations on Disposition. Without in any way
limiting the representations set forth above, such Investor further agrees not
to make any disposition of all or any portion of the Securities unless:

                                      -5-
<PAGE>   9

                           (a) There is then in effect a registration statement
under the Act covering such proposed disposition and such disposition is made in
accordance with such registration statement; or

                           (b) (i) Such Investor shall have notified the Company
of the proposed disposition and shall have furnished the Company with a detailed
statement of the circumstances surrounding the proposed disposition, (ii) the
transferee has agreed in writing for the benefit of the Company to be bound by
this Section 3, and (iii) if reasonably requested by the Company, such Investor
shall have furnished the Company with an opinion of counsel, reasonably
satisfactory to the Company that such disposition will not require registration
of such shares under the Act. It is agreed that the Company will not require
opinions of counsel for transactions made pursuant to Rule 144 except in unusual
circumstances.

                  3.8 Legends. It is understood that the certificates
evidencing the Securities may bear one or all of the following legends:

                           (a) "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT
WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS
SOLD PURSUANT TO RULE 144 OF SUCH ACT."

                           (b) Any legend required by the Bylaws of the Company
or applicable state securities laws.

                  3.9 Further Representations by Foreign Investors. If an
Investor is not a United States person, such Investor hereby represents that he
or she has satisfied himself or herself as to the full observance of the laws of
his or her jurisdiction in connection with any invitation to subscribe for the
Securities or any use of this Agreement, including (i) the legal requirements
within his or her jurisdiction for the purchase of the Securities, (ii) any
foreign exchange restrictions applicable to such purchase, (iii) any
governmental or other consents that may need to be obtained, and (iv) the income
tax and other tax consequences, if any, that may be relevant to the purchase,
holding, redemption, sale, or transfer of the Securities. Such Investor's
subscription and payment for, and his or her continued beneficial ownership of
the Securities, will not violate any applicable securities or other laws of his
or her jurisdiction.

         4. COVENANTS OF THE COMPANY.

                  The Company covenants with each of the Investors that:

                  4.1 Registration Rights. The Company shall cause the Shelf
Registration Agreement to remain in full force and effect and the Company shall
comply in all material respects with the terms thereof.

                                      -6-
<PAGE>   10

                  4.2 Reservation of Common Stock. As of the Initial Closing,
the Company shall have reserved, and the Company shall continue to reserve and
keep available at all times, shares of Common Stock of the Company for the
purpose of enabling the Company to issue Conversion Shares pursuant to any
conversion of the Series B Preferred Stock.

                  4.3 Listing of Common Stock. The Company hereby agrees to use
its best efforts to maintain the listing of its Common Stock on the Small Cap
Market, the Nasdaq National Market, or the New York Stock Exchange, subject to
the rules and regulations of such markets.

                  4.4 Exchange Act Registration. The Company will cause its
Common Stock to continue to be registered under Section 12(b) or (g) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), will use its
best efforts to comply in all respects with its reporting and filing obligations
under the Exchange Act, and will not take any action or file any document
(whether or not permitted by the Exchange Act or the rules thereunder) to
terminate or suspend such registration or to terminate or suspend its reporting
and filing obligations under said Act until the Investors have disposed of all
of their Series B Preferred Stock and Conversion Shares acquired hereunder.

         5. COVENANTS OF THE INVESTORS.

                           Each Investor, severally and not jointly, covenants
with the Company that:

                  5.1 Compliance with Law. The Investor's trading activities
with respect to shares of the Company's Common Stock will be in compliance with
all applicable state and federal securities laws, rules and regulations and
rules and regulations of the Market on which the Company's Common Stock is
listed.

                  5.2 No Short Sales. For so long as such Investor owns any of
the shares of the Series B Preferred Stock or the Conversion Shares, neither the
Investor or any of its affiliates will be in a net short position with regard to
the Common Stock of the Company in any accounts directly or indirectly owned or
controlled by the Investor. In the event that an Investor or any of its
affiliates engages in a short transaction with regard to the Common Stock during
any time that the Investor owns any of the Series B Preferred Stock or the
Conversion Shares, or otherwise is in a net short position regarding the same,
Investor hereby agrees to forfeit (i) any and all profits generated from such
transaction or position, and (ii) any and all Series B Preferred Stock and/or
Conversion Shares to the Company. Each Investor hereto further agrees to execute
a (y) "No-Short" affidavit at each and every conversion of the Common Stock, and
(z) any other document reasonably requested by the Company to give effect to
this Section 5.2.

                                      -7-
<PAGE>   11

        6. CONDITIONS OF INVESTOR'S OBLIGATIONS AT THE CLOSINGS. The obligations
of each Investor under subsection 1.2(b) of this Agreement are subject to the
fulfillment on or before each Closing of each of the following conditions, the
waiver of which shall not be effective against any Investor who does not consent
thereto:

                  6.1 Representations and Warranties. The representations and
warranties of the Company contained in Section 2 shall be true on and as of the
Closing with the same effect as though such representations and warranties had
been made on and as of the date of such Closing.

                  6.2 Performance. The Company shall have performed and complied
with all agreements, obligations and conditions contained in this Agreement that
are required to be performed or complied with by it on or before the Closing.

                  6.3 Compliance Certificate. The President of the Company shall
deliver to each Investor at the Closing a certificate stating that the
conditions specified in Sections 6.1 have been fulfilled in all material
respects.

                  6.4 Certificate of Designation. The Certificate of Designation
shall have been filed with the Secretary of State of the State of Delaware.

                  6.5 Registration Rights. The Company shall have duly
authorized, executed and delivered to the Investor the Shelf Registration
Agreement attached as Exhibit C (the "Shelf Registration Agreement").

        7. CONDITIONS OF THE COMPANY'S OBLIGATIONS AT THE CLOSINGS. The
obligations of the Company to each Investor under this Agreement are subject to
the fulfillment on or before each Closing of each of the following conditions by
that Investor:

                  7.1 Representations and Warranties. The representations and
warranties of the Investor contained in Section 3 shall be true on and as of the
Closing with the same effect as though such representations and warranties had
been made on and as of the Closing.

                  7.2 Payment of Purchase Price. Each of the Investors shall
have delivered the purchase price specified in Section 1 for the numbers of
shares of Series B Preferred Stock set forth opposite such Investor's name on
Exhibit A hereto.

                  7.3 Registration Rights. Each of the Investors shall have
delivered to the Company a duly executed Shelf Registration Agreement attached
as Exhibit C.

        8. MISCELLANEOUS.

                  8.1 Survival of Warranties. The warranties, representations
and covenants of the Company and Investors contained in or made pursuant to this
Agreement shall survive the execution and delivery of this Agreement and the
Closings and shall in no way be affected by any investigation of the subject
matter thereof made by or on behalf of the Investors or the Company.

                                      -8-
<PAGE>   12
                  8.2 Successors and Assigns. Except as otherwise provided
herein, the terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the respective successors and assigns of the parties
(including transferees of any Securities). Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or
their respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

                  8.3 Governing Law. This Agreement shall be governed in all
respects by and construed in accordance with the laws of the State of California
without regard to provisions regarding choice of laws.

                  8.4 Counterparts. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                  8.5 Titles and Subtitles. The titles and subtitles used in
this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

                  8.6 Notices. Unless otherwise provided, any notice required or
permitted under this Agreement shall be given in writing and shall be deemed
effectively given (i) upon personal delivery to the party to be notified, by
deposit with an overnight delivery service, or upon deposit with the United
States Post Office, by certified mail, postage prepaid and addressed to the
party to be notified at the address indicated for such party on Exhibit A
hereto, or at such other address as such party may designate by ten (10) days'
advance written notice to the other parties, or (ii) by electronic facsimile
(fax) to such party with receipt confirmed within three (3) days by notice
delivered in accordance with Section 8.6(i).

                  8.7 Finder's Fee. Each Investor represents that it neither is
nor will be obligated for any finders' fee or commission in connection with this
transaction. Each Investor agrees to indemnify and to hold harmless the Company
from any liability for any commission or compensation in the nature of a
finders' fee (and the costs and expenses of defending against such liability or
asserted liability) for which such Investor or any of its officers, partners,
employees, or representatives is responsible. The Company agrees to indemnify
and hold harmless the Investor from any liability for any commission or
compensation in the nature of a finders' fee (and the costs and expenses of
defending against such liability or asserted liability) for which the Company or
any of its officers, employees or representatives is responsible.

                  8.8 Expenses. Irrespective of whether the Initial Closing is
effected, each of the Company and the Investors, separately, shall bear their
own costs and expenses incurred with respect to the negotiation, execution,
delivery and performance of this Agreement and the transactions contemplated
thereby. If any action at law or in equity is necessary to enforce or interpret
the terms of this Agreement, the prevailing party shall be entitled to
reasonable attorneys' fees, costs and necessary disbursements in addition to any
other relief to which such party may be entitled.

                                      -9-
<PAGE>   13

                  8.9 Amendments and Waivers. Any term of this Agreement may be
amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the Company and the holders of
a majority of the Conversion Shares issued or issuable hereunder. Any amendment
or waiver effected in accordance with this paragraph shall be binding upon each
holder of any securities purchased under this Agreement at the time outstanding
(including securities into which such securities are convertible), each future
holder of all such securities, and the Company.

                  8.10 Severability. If one or more provisions of this Agreement
are held to be unenforceable under applicable law, such provision shall be
excluded from this Agreement and the balance of the Agreement shall be
interpreted as if such provision were so excluded and shall be enforceable in
accordance with its terms

                  8.11 Aggregation of Stock. All shares of Series B Preferred
Stock held or acquired by affiliated entities or persons shall be aggregated
together for the purpose of determining the availability of any rights under
this Agreement.

                  8.12 Entire Agreement. This Agreement and the documents
referred to herein constitute the entire agreement among the parties and no
party shall be liable or bound to any other party in any manner by any
warranties, representations, or covenants except as specifically set forth
herein or therein.

                  8.13 California Commissioner of Corporations. THE SALE OF THE
SECURITIES THAT ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH
THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF
SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION FOR
SUCH SECURITIES PRIOR TO SUCH QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF
SECURITIES IS EXEMPT FROM QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE
CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE
EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS
SO EXEMPT.

                                      -10-
<PAGE>   14
         IN WITNESS WHEREOF, the parties have executed this Series B Preferred
Stock Purchase Agreement as of the date first above written.

                                       NHANCEMENT TECHNOLOGIES INC.

                                       By:
                                           --------------------------------
                                       Its:
                                           --------------------------------

               [Signature Page to the NHancement Technologies Inc.
   Series B Preferred Stock Purchase Agreement Dated as of October ___, 2000]

                                      -11-
<PAGE>   15
         IN WITNESS WHEREOF, the parties have executed this Series B Preferred
Stock Purchase Agreement as of the date first above written.

INVESTOR(S) (INDIVIDUAL)                 INVESTOR (ENTITY)

-------------------------------------    ---------------------------------------
Signature                                (Name of Corporation or Other Entity)

-------------------------------------    ---------------------------------------
Type/Print Name of Individual Investor   By:
(Specify "as joint tenant," as           Signature of Authorized Officer,
 trustee," etc. if applicable)           Trustee or Partner

-------------------------------------    ---------------------------------------
Signature of Joint Investor              Title

-------------------------------------
Type/Print Name of Individual Investor
(Specify "as joint tenant," as
trustee," etc. if applicable)

-------------------------------------    ---------------------------------------
Tax Identification or Social Security    Tax Identification Number for Investor
Number for Investor(s)

               [Signature Page to the NHancement Technologies Inc.
   Series B Preferred Stock Purchase Agreement Dated as of October ___, 2000]

                                      -12-
<PAGE>   16
                                    EXHIBIT A

                              Schedule of Investors

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
      INVESTOR                  SHARES PURCHASED         PRICE PER SHARE         AGGREGATE PURCHASE PRICE
---------------------------------------------------------------------------------------------------------
<S>                             <C>                      <C>                     <C>
Tom Baldwin                           35,000                  $100.00                     3,500,000

Robert Schmier                         1,000                  $100.00                      100,000

Douglas Feurring                       1,250                  $100.00                      125,000

Charles Lewis Trustee                  1,000                  $100.00                      100,000

Robert Gilman                          2,500                  $100.00                      250,000

Harvey A. Eisman                        500                   $100.00                      50,000

Michael Palma                           500                   $100.00                      50,000

Patrick Matre                          1,000                  $100.00                      100,000

Harvey Eisman                           500                   $100.00                      50,000

Jim Dingle                             1,000                  $100.00                      100,000

Charles Lewis Trust                    2,000                  $100.00                      200,000

Wayne Saker                            3,500                  $100.00                      350,000

Dan Krasky                             1,000                  $100.00                      100,000

First Options                           300                   $100.00                      30,000

First Options                           250                   $100.00                      25,000

P. Grabler Trust                      10,000                  $100.00                     1,000,000

Bruton D & Scheck                      2,500                  $100.00                      25,000

Joseph Colloton                        1,000                  $100.00                      100,000

Wayne Twardosz                         1,500                  $100.00                      150,000

Victor DiMaggio & Christina            3,150                  $100.00                      315,000
Bladwin

Commonwealth Central                   1,000                  $100.00                      100,000

Dale S. Scheck                         5,000                  $100.00                      50,000

Douglas Feurring                       1,250                  $100.00                      125,000

Robert Schmier                         1,135                  $100.00                      113,500

First Options                          1,000                  $100.00                      100,000

First Options                           200                   $100.00                      20,000

TOTAL                                 79,035                    NA                      $7,228,500.00
---------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   17
                                    EXHIBIT B

                           CERTIFICATE OF DESIGNATION

                                 [See attached]

<PAGE>   18
                                    EXHIBIT C

                          SHELF REGISTRATION AGREEMENT

                                 [See attached]

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