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                                                                     EXHIBIT 4.1

                    CERTIFICATE OF DESIGNATIONS, PREFERENCES
                    AND RELATIVE, PARTICIPATING, OPTIONAL AND
                        OTHER SPECIAL RIGHTS OF PREFERRED
                      STOCK AND QUALIFICATIONS, LIMITATIONS
                            AND RESTRICTIONS THEREOF

                                       OF

                 SERIES A CUMULATIVE CONVERTIBLE PREFERRED STOCK

                                       OF

                            NEXTERA ENTERPRISES, INC.

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

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                Nextera Enterprises, Inc., a Delaware corporation (the
"Corporation") certifies that pursuant to the authority contained in Article Six
of its Amended and Restated Certificate of Incorporation (the "Certificate of
Incorporation") and in accordance with the provisions of Section 151 of the
General Corporation Law of the State of Delaware, the Board of Directors of the
Corporation at a meeting duly called and held on December 14, 2000 adopted the
following resolution which resolution remains in full force and effect on the
date hereof:

                RESOLVED, that there is hereby established a series of
authorized preferred stock having a par value of $.001 per share, which series
shall be designated as "Series A Cumulative Convertible Preferred Stock" (the
"Series A Preferred Stock") and shall consist of 600,000 shares.

                RESOLVED FURTHER, that the Series A Preferred Stock shall have
the following voting powers, preferences and relative, participating, optional
and other special rights, and qualifications, limitations and restrictions
thereof as follows:

                1. Certain Definitions.

                Unless the context otherwise requires, the terms defined in this
paragraph 1 shall have, for all purposes of this resolution, the meanings herein
specified (with terms defined in the singular having comparable meanings when
used in the plural).

                Business Day. The term "Business Day" shall mean a day other
than a Saturday or Sunday or any federal holiday.

                Common Equity. The term "Common Equity" shall mean all shares
now or hereafter authorized of any class of Common Stock of the Corporation,
including the Class A Common Stock and Class B Common Stock, and any other stock
of the Corporation, howsoever designated, authorized after the Initial Issue
Date, which has the right (subject always to prior rights of any class or series
of

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preferred stock) to participate in the distribution of the assets and earnings
of the Corporation without limit as to per share amount.

                Class A Common Stock. The term "Class A Common Stock" shall mean
the Class A Common Stock, par value $.001 per share, of the Corporation.

                Class B Common Stock. The term "Class B Common Stock" shall mean
the Class B Common Stock, par value $.001 per share, of the Corporation.

                Common Stock. The term "Common Stock" shall mean the Class A
Common Stock and Class B Common Stock.

                Conversion Price. The term "Conversion Price" shall, for the
period commencing on June 30, 2001 and extending until the date that is
twenty-four months after the Initial Issue Date (the "Initial Conversion Price
Period"), mean the lesser of (i) $3.00 or (ii) one hundred and fifty percent
(150%) of the average of the Quoted Price of the Class A Common Stock for the
final ten (10) Trading Days (defined below) immediately preceding June 30, 2001
(the "Initial Conversion Price"), and thereafter shall be reset at the lower of
(i) the Initial Conversion Price, or (ii) eighty percent (80%) of the average of
the Quoted Price of the Class A Common Stock for the final thirty (30) Trading
Days of the Initial Conversion Price Period (the "Reset Conversion Price");
provided, however, that in no event shall the Conversion Price of the Series A
Preferred Stock be less than the Quoted Price of the Class A Common Stock on the
last trading day prior to the Initial Issue Date, subject to adjustment as
provided in paragraph 4 below.

                Dividend Payment Date. The term "Dividend Payment Date" shall
have the meaning set forth in subparagraph 2(c) below.

                Dividend Period. The term "Dividend Period" shall mean the
period from, and including, the Initial Issue Date to, but not including, the
first Dividend Payment Date and thereafter, each quarterly period from, and
including, the Dividend Payment Date to, but not including the next Dividend
Payment Date.

                Exchange Date. The term "Exchange Date" shall have the meaning
set forth in subparagraph 6(b) below.

                Exchange Debentures. The term "Exchange Debentures" shall mean
debentures of Nextera Enterprises, Inc. in a form substantially similar (and
with respect to economic terms identical, including, if applicable, identical
subordination agreements as in effect immediately prior to the Initial Issue
Date) to that certain Amended and Restated Debenture of Nextera Enterprises,
Inc., in the original principal amount of $24,970,000 dated as of December 31,
1997, as amended, except that the original issue date of the Exchange Debentures
shall be the Exchange Date.

                Initial Issue Date. The term "Initial Issue Date" shall mean the
date that shares of Series A Preferred Stock are first issued by the
Corporation.

                Junior Stock. The term "Junior Stock" shall mean, for purposes
of paragraph 2 below, Common Equity and any class or series of stock of the
Corporation authorized after the Initial Issue Date which is not entitled to
receive any dividends in any Dividend Period unless all dividends required to
have been paid or declared and set apart for payment on the Series A Preferred
Stock shall have been

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so paid or declared and set apart for payment, and for purposes of paragraph 3
below, shall mean Common Equity and any class or series of stock of the
Corporation authorized after the Initial Issue Date which is not entitled to
receive any assets upon liquidation, dissolution or winding up of the affairs of
the Corporation until the Series A Preferred Stock shall have received the
entire amount to which such stock is entitled upon such liquidation, dissolution
or winding up.

                Liquidation Preference. The term "Liquidation Preference" shall
mean $100 per share.

                Parity Stock. The term "Parity Stock" shall mean, for purposes
of paragraph 2 below, any class or series of stock of the Corporation authorized
after the Initial Issue Date which is entitled to receive payment of dividends
on a parity with the Series A Preferred Stock, and for purposes of paragraph 3
below, shall mean any class or series of stock of the Corporation authorized
after the Initial Issue Date which is entitled to receive assets upon
liquidation, dissolution or winding up of the affairs of the Corporation on a
parity with the Series A Preferred Stock.

                PIK Dividends. The term "PIK Dividends" shall have the meaning
set forth in subparagraph 2(b) below.

                Premium Redemption Price. The term "Premium Redemption Price"
shall have the meaning set forth in subparagraph 5(b) below.

                Quoted Price. The term "Quoted Price" with respect to either the
Class A Common Stock or another security shall mean the last reported sales
price of the applicable security as reported by the National Association of
Securities Dealers, Inc. Automatic Quotations System, National Market System,
or, if the applicable security is listed or admitted for trading on a securities
exchange, the last reported sales price of the applicable security on the
principal exchange on which the applicable security is listed or admitted for
trading (which shall be for consolidated trading if applicable to such
exchange), or if neither so reported or listed or admitted for trading, the last
reported bid price of the applicable security in the over-the-counter market. In
the event that the Quoted Price cannot be determined as aforesaid, the Board of
Directors of the Corporation shall determine the Quoted Price on the basis of
such quotations as it in good faith considers appropriate. Such determination
may be challenged in good faith by a majority of holders of shares of Series A
Preferred Stock, and any dispute shall be resolved at the Corporation's cost, by
an investment banking firm of recognized national standing selected by the
Corporation and acceptable to such holders of Series A Preferred Stock and shall
be made in good faith and be conclusive absent manifest error.

                Record Date. The term "Record Date" shall mean the date
designated by the Board of Directors of the Corporation at the time a dividend
is declared; provided, however, that such Record Date shall not be more than
thirty (30) days nor less than ten (10) days prior to the respective Dividend
Payment Date or such other date designated by the Board of Directors for the
payment of dividends.

                Redemption Date. The term "Redemption Date" shall have the
meaning set forth in subparagraph 5(c) below.

                Redemption Price. The term "Redemption Price" shall mean a price
per share equal to the Liquidation Preference together with accrued and unpaid
dividends thereon to the Redemption Date.

                Reset Conversion Price. The term "Reset Conversion Price" shall
have the meaning set forth in the definition for Conversion Price in this
paragraph 1.

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                Senior Stock. The term "Senior Stock" shall mean, for purposes
of paragraph 2 below, any class or series of stock of the Corporation authorized
after the Initial Issue Date ranking senior to the Series A Preferred Stock in
respect of the right to receive dividends, and for purposes of paragraph 3
below, shall mean any class or series of stock of the Corporation authorized
after the Initial Issue Date ranking senior to the Series A Preferred Stock in
respect of the right to participate in any distribution upon liquidation,
dissolution or winding up of the affairs of the Corporation.

                Trading Day. The term "Trading Day" with respect to the Common
Stock shall mean any day on which any market in which the Common Stock is then
traded and in which a Quoted Price may be ascertained is open for business.

                2. Dividends.

                (a) Subject to the prior preferences and other rights of any
Senior Stock as to dividends, the record holders of Series A Preferred Stock
shall be entitled to receive dividends, when and as declared by the Board of
Directors of the Corporation, out of funds legally available for payment of
dividends. Except as provided in paragraph 6 below, such dividends shall be
cumulative and shall be payable at the rate of ten percent (10%) per annum of
the Liquidation Preference for the period commencing on the Initial Issue Date
and extending for through and including June 30, 2001. Thereafter, such dividend
shall be cumulative and shall be payable at the rate of seven percent (7%) per
annum of the Liquidation Preference.

                (b) Dividends on the Series A Preferred Stock shall be paid in
cash, or at the option of the Corporation, in substitute in whole or in part for
such cash, in additional fully paid and nonassessable shares of Series A
Preferred Stock legally available for such purpose (such dividends paid in kind
being herein called "PIK Dividends"). Dividends of additional shares of Series A
Preferred Stock shall be paid by delivering to each record holder of Series A
Preferred Stock a number of additional shares of Series A Preferred Stock
determined by dividing the total amount of the cash dividend which otherwise
would be payable on the Dividend Payment Date to such holder (rounded to the
nearest whole cent) by the Liquidation Preference, rounded up to the nearest
whole share. The issuance of any such PIK Dividend in such amount shall
constitute full payment of such dividend. In no event shall the election by the
Corporation to pay dividends, in whole or in part, in cash or in additional
shares of Series A Preferred Stock preclude the Corporation from making a
different election with respect to all or a portion of the dividends to be paid
on the Series A Preferred Stock on any subsequent Dividend Payment Date. Any
additional shares of Series A Preferred Stock issued pursuant to this paragraph
shall be governed by this resolution and shall be subject in all respects,
except as to the date of issuance and date from which dividends accrue and
cumulate as set forth below, to the same terms as the shares of Series A
Preferred Stock originally issued hereunder. All dividends (whether payable in
cash or in whole or in part in additional shares of Series A Preferred Stock)
paid pursuant to this paragraph shall be paid in equal pro rata proportions of
such cash and/or shares of Series A Preferred Stock to the holders entitled
thereto.

                (c) Dividends on shares of Series A Preferred Stock shall accrue
and be cumulative from the date of issuance of such shares. Dividends shall be
payable quarterly in arrears when and as declared by the Board of Directors of
the Corporation on March 15, June 15, September 15, and December 15 of each year
(a "Dividend Payment Date"), commencing on March 15, 2001 and for shares paid as
PIK Dividends, commencing on the first Dividend Payment Date after such shares
are issued. If any Dividend Payment Date occurs on a day that is not a Business
Day, any accrued

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dividends otherwise payable on such Dividend Payment Date shall be paid on the
next succeeding Business Day. The amount of dividends payable on Series A
Preferred Stock for each full Dividend Period shall be computed by dividing by
four (4) the annual rate per share set forth in subparagraph 2(a) above.
Dividends shall be paid to the holders of record of the Series A Preferred Stock
as their names shall appear on the share register of the Corporation on the
Record Date for such dividend. Dividends payable in any Dividend Period which is
less than a full Dividend Period in length will be computed on the basis of a
ninety (90) day quarterly period and actual days elapsed in such Dividend
Period. If a cash dividend may not legally be paid in the full amount to which
shares of Series A Preferred Stock are entitled with respect to any Dividend
Period, dividends in the full preferential amount hereby provided shall be, to
the extent legally and contractually permissible, declared and paid as PIK
Dividends. Dividends on account of arrears for any past Dividend Periods may be
declared and paid at any time to holders of record on the Record Date therefor.

                (d) In the event that full dividends are not paid or made
available to the holders of all outstanding shares of Series A Preferred Stock
and of any Parity Stock and funds available for payment of dividends shall be
insufficient to permit payment in full to holders of all such stock of the full
preferential amounts to which they are then entitled, then the entire amount
available for payment of dividends shall be distributed ratably among all such
holders of Series A Preferred Stock and of any Parity Stock in proportion to the
full amount to which they would otherwise be respectively entitled. For purposes
of this subparagraph, the amount of legally available PIK Dividends shall be
deemed funds available for payment of dividends, but shall not require payment
of PIK Dividends on Parity Stock.

                (e) Notwithstanding anything contained herein to the contrary,
no dividends on shares of Series A Preferred Stock shall be declared by the
Board of Directors of the Corporation or paid or set apart for payment by the
Corporation at such time as the terms and provisions of any agreement of the
Corporation, including any agreement relating to its indebtedness, prohibits
such declaration, payment or setting apart for payment or provides that such
declaration, payment or setting apart for payment would constitute a breach
thereof or a default thereunder, or if such declaration or payment shall be
restricted or prohibited by law.

                (f) So long as any shares of Series A Preferred Stock shall be
outstanding, without the written approval of holders of a majority of the
outstanding shares of Series A Preferred Stock, the Corporation shall not
declare, pay or set apart for payment on any Junior Stock any dividends
whatsoever, whether in cash, property or otherwise (other than dividends payable
in shares of the class or series upon which such dividends are declared or paid,
or payable in shares of Common Stock with respect to Junior Stock other than
Common Stock), nor shall the Corporation make any distribution on any Junior
Stock, nor shall any Junior Stock be purchased, redeemed or otherwise acquired
by the Corporation.

                3. Distributions Upon Liquidation, Dissolution or Winding Up.

                (a) In the event of any voluntary or involuntary liquidation,
dissolution or other winding up of the affairs of the Corporation, subject to
the prior preferences and other rights of any Senior Stock as to liquidation
preferences, but before any payment or distribution shall be made to the holders
of Junior Stock, the holders of Series A Preferred Stock shall be entitled to be
paid out of the assets of the Corporation in cash or property at its fair market
value as determined by the Board of Directors of the Corporation the Liquidation
Preference per share plus an amount equal to all dividends accrued and unpaid
thereon to the date of such liquidation or dissolution or such other winding up.

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Except as provided in this paragraph, holders of Series A Preferred Stock shall
not be entitled to any distribution in the event of liquidation, dissolution or
winding up of the affairs of the Corporation.

                (b) If, upon any such liquidation, dissolution or other winding
up of the affairs of the Corporation the assets of the Corporation shall be
insufficient to permit the payment in full of the Liquidation Preference per
share plus an amount equal to all dividends accrued and unpaid on the Series A
Preferred Stock and the full liquidating payments on all Parity Stock, then the
assets of the Corporation remaining after the distributions to holders of any
Senior Stock of the full amounts to which they may be entitled shall be ratably
distributed among the holders of Series A Preferred Stock and of any Parity
Stock in proportion to the full amounts to which they would otherwise be
respectively entitled if all amounts thereon were paid in full.

                (c) The merger or consolidation of the Corporation into or with
another corporation in which the Corporation is not the surviving corporation or
any other transaction which results in the Corporation's stockholders
immediately prior to such transaction owning less than 50% of the Corporation's
voting power immediately after such transaction, or the sale of all or
substantially all of the assets of the Corporation, shall be deemed to be a
liquidation, dissolution or winding up of the Corporation for purposes of this
paragraph 3. The amount deemed distributed to the holders of Series A Preferred
Stock upon any such merger or consolidation shall be the cash or the value of
the property, rights or securities distributed to such holders by the acquiring
person, firm or other entity.

                4. Conversion Rights.

                (a) Subject to and upon compliance with the provisions of this
paragraph 4, each share of Series A Preferred Stock shall, at the option of the
holder thereof, be convertible at any time after June 30, 2001 into that number
of fully paid and non-assessable shares of Class A Common Stock (calculated as
to each conversion to the nearest 1/100th of a share) obtained by dividing the
Liquidation Preference by the Conversion Price in effect at such time and by
surrender of such share so to be converted in the manner provided in paragraph
4(b).

                (b) In order to exercise the conversion privilege, the holder of
one or more shares of Series A Preferred Stock to be converted shall surrender
such shares at any of the offices or agencies to be maintained for such purpose
by the Corporation accompanied by the funds, if any, required by the last
paragraph of this section 4(b) and shall give written notice by first class
mail, postage prepaid, to the Corporation at such office or agency that the
holder elects to convert the shares of Series A Preferred Stock specified in
said notice. Such notice shall also state the name or names, together with
address or addresses, in which the certificate or certificates for shares of
Class A Common Stock which shall be issuable in such conversion shall be issued.
Each share of Series A Preferred Stock surrendered for conversion shall, unless
the shares issuable on conversion are to be issued in the same name as the name
in which such share is registered, be accompanied by instruments of transfer, in
form satisfactory to the Corporation, duly executed by the holder or his duly
authorized attorney and an amount sufficient to pay any transfer or similar tax.
As promptly as practicable after the surrender of such shares of Series A
Preferred Stock and the receipt of such notice, instruments of transfer and
funds, if any, as aforesaid, the Corporation shall issue and shall deliver at
such office or agency to such holder, or on his written order a certificate or
certificates for the number of full shares of Class A Common Stock issuable upon
the conversion of such share of Series A Preferred Stock in accordance with the
provisions of this paragraph 4 and a check or cash in respect of any fractional
interest in a share of Class A Common Stock arising upon such conversion, as
provided in paragraph 4(c).

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                Each conversion shall be deemed to have been effected
immediately prior to the close of business on the date on which such shares of
Series A Preferred Stock shall have been surrendered and such notice (and any
applicable instruments of transfer and any required taxes) received by the
Corporation as aforesaid, and the person or persons in whose name or names any
certificate or certificates for shares of Class A Common Stock shall be issuable
upon such conversion shall be deemed to have become the holder or holders of
record of the shares represented thereby at such time on such date, and such
conversion shall be at the Conversion Price in effect at such time on such date,
unless the stock transfer books of the Corporation shall be closed on that date,
in which event such person or persons shall be deemed to have become such holder
or holders of record at the close of business on the next succeeding day on
which such stock transfer books are open, but such conversion shall be at the
Conversion Price in effect on the date upon which such shares of Series A
Preferred Stock shall have been surrendered and such notice received by the
Corporation. No adjustment shall be made for dividends accrued on any shares of
Series A Preferred converted as provided in this paragraph.

                (c) No fractional shares or scrip representing fractions of
shares of Class A Common Stock shall be issued upon conversion of Series A
Preferred Stock. In lieu of any fractional interest in a share of Class A Common
Stock which would otherwise be deliverable upon the conversion of any share of
Series A Preferred Stock, the Corporation shall pay to the holder of such shares
an amount in cash (computed to the nearest cent) equal to the Quoted Price of
the Class A Common Stock on the business day next preceding the day of
conversion multiplied by the fractional interest that otherwise would have been
deliverable upon conversion of such share.

                (d) The Conversion Price shall be subject to adjustment from
time to time by the Corporation as follows:

                        (i) In case the Corporation shall (A) pay a dividend or
make a distribution on its Common Stock in shares of Common Stock, (B) subdivide
its outstanding shares of Common Stock into a greater number of shares, (C)
combine its outstanding shares of Common Stock into a smaller number of shares,
or (D) issue by reclassification of its Common Stock any shares of capital stock
of the Corporation, then in each such case the Conversion Price in effect
immediately prior to such action shall be adjusted so that the holder of any
share of Series A Preferred Stock thereafter surrendered for conversion shall be
entitled to receive the number of shares of Common Stock or other capital stock
of the Corporation which he would have owned or been entitled to receive
immediately following such action had such share been converted immediately
prior to the occurrence of such event. An adjustment made pursuant to this
paragraph 4(d)(i) shall become effective immediately after the record date, in
the case of a dividend or distribution, or immediately after the effective date,
in the case of a subdivision, combination or reclassification. If, as a result
of an adjustment made pursuant to this paragraph 4(d)(i), the holder of any
share of Series A Preferred Stock thereafter surrendered for conversion shall
become entitled to receive shares of two or more classes of capital stock or
shares of Common Stock and other capital stock of the Corporation, the Board of
Directors (whose determination shall be conclusive and shall be described in a
statement filed by the Corporation with the stock transfer or conversion agent,
as appropriate) shall determine the allocation of the adjusted Conversion Price
between or among shares of such classes of capital stock or shares of Common
Stock and other capital stock.

                        (ii) In case the Corporation shall issue rights or
warrants to all holders of its outstanding shares of Common Stock entitling them
(for a period expiring within 45 days after the record date mentioned below) to
subscribe for or purchase shares of Common Stock at a price

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per share less than the current market price per share (as determined pursuant
to paragraph 4(d)(iv)) of the Common Stock (other than pursuant to any stock
option, restricted stock or other incentive or benefit plan or stock ownership
or purchase plan for the benefit of employees, directors or officers or any
dividend reinvestment plan of the Corporation in effect at the time hereof or
any other similar plan adopted or implemented hereafter), then the Conversion
Price in effect immediately prior thereto shall be adjusted so that it shall
equal the price determined by multiplying the Conversion Price in effect
immediately prior to the date of issuance of such rights or warrants by a
fraction of which the numerator shall be the number of shares of Common Stock
outstanding on the date of issuance of such rights or warrants (immediately
prior to such issuance) plus the number of shares which the aggregate offering
price of the total number of shares so offered would purchase at such current
market price, and of which the denominator shall be the number of shares of
Common Stock outstanding on the date of issuance of such rights or warrants
(immediately prior to such issuance) plus the number of additional shares of
Common Stock offered for subscription or purchase. Such adjustment shall be made
successively whenever any rights or warrants are issued, and shall become
effective immediately after the record date for the determination of
stockholders entitled to receive such rights or warrants; provided, however, in
the event that all the shares of Common Stock offered for subscription or
purchase are not delivered upon the exercise of such rights or warrants, upon
the expiration of such rights or warrants the Conversion Price shall be
readjusted to the Conversion Price which would have been in effect had the
numerator and the denominator of the foregoing fraction and the resulting
adjustment been made based upon the number of shares of Common Stock actually
delivered upon the exercise of such rights or warrants rather than upon the
number of shares of Common Stock offered for subscription or purchase. In
determining whether any rights or warrants entitle the holders to subscribe for
or purchase shares of Common Stock at less than such current market price, and
in determining the aggregate offering price of such shares of Common Stock,
there shall be taken into account any consideration received by the Corporation
for such rights or warrants, the value of such consideration, if other than
cash, to be determined by the Board of Directors (whose determination shall be
conclusive and shall be described in a statement filed by the Corporation with
the stock transfer or conversion agent, as appropriate).

                        (iii) In case the Corporation shall, by dividend or
otherwise, distribute to all holders of its outstanding Common Stock or capital
stock (other than Common Stock), evidences of its indebtedness or assets
(including securities and cash, but excluding any cash dividends paid by the
Corporation in the ordinary course, and excluding dividends or distributions
payable in stock for which adjustment is made pursuant to paragraph 4(d)(i) or
rights or warrants to subscribe for or purchase securities of the Corporation
(excluding those referred to in paragraph 4(d)(ii)), then in each such case the
Conversion Price shall be adjusted so that the same shall equal the price
determined by multiplying the Conversion Price in effect immediately prior to
the record date of such distribution by a fraction of which the numerator shall
be the current market price per share as determined pursuant to paragraph
4(d)(iv) of the Common Stock less the fair market value on such record date (as
determined by the Board of Directors, whose determination shall be conclusive
and shall be described in a statement filed by the Corporation with the stock
transfer or conversion agent, as appropriate) of the portion of the capital
stock or assets or the evidences of indebtedness or assets so distributed to the
holder of one share of Common Stock or of such subscription rights or warrants
applicable to one share of Common Stock, and of which the denominator shall be
such current market price per share of Common Stock. Such adjustment shall
become effective immediately after the record date for the determination of
stockholders entitled to receive such distribution.

                        (iv) For the purpose of any computation under paragraphs
4(d)(ii) and (iii), the current market price per share of Common Stock on any
date shall be deemed to be the

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average of the Quoted Price for the shorter of (A) 30 consecutive Trading Days
ending on the last full trading day prior to the Time of Determination or (B)
the period commencing on the date next succeeding the first public announcement
of the issuance of such rights or warrants or such distribution through such
last full Trading Day prior to the Time of Determination. For purposes of the
foregoing, the term "Time of Determination" shall mean the time and date of the
earlier of (I) the record date for determining stockholders entitled to receive
the rights, warrants or distributions referred to in paragraphs 4(d)(ii) and
(iii) or (II) the commencement of "ex-dividend" trading on the exchange or
market referred to in the definition of Quoted Price.

                        (v) If the Corporation shall issue any Common Stock
(other than "Excluded Stock," as defined below, or stock dividends,
subdivisions, split-ups, combinations or dividends which are covered by
paragraph 4(d)(i)), for a consideration per share less than the Conversion Price
in effect immediately prior to the issuance of such Common Stock (with such
Conversion Price for the period until June 30, 2001 deemed to be $3.00), the
Conversion Price in effect immediately after each such issuance shall forthwith
be adjusted to a price determined by multiplying the Conversion Price in effect
immediately prior to the issuance of such Common Stock by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such issue plus the number of shares of Common Stock which
the aggregate consideration received by the Corporation for the total number of
additional shares of Common Stock so issued would purchase at such Conversion
Price in effect immediately prior to such issuance, and the denominator of which
shall be the number of shares of Common Stock outstanding immediately prior to
such issue plus the number of such additional shares of Common Stock so issued.

        For the purposes of any adjustment of a Conversion Price pursuant to
this paragraph 4(d)(v), the following provisions shall be applicable:

                        (1) In the case of the issuance of Common Stock for
cash, the consideration shall be deemed to be the amount of cash paid therefor
without deducting any discounts or commissions paid or incurred by the
Corporation in connection with the issuance and sale thereof.

                        (2) In the case of the issuance of Common Stock for a
consideration in whole or in part other than cash, the consideration other than
cash shall be deemed to be the fair value thereof as determined by the Board of
Directors of the Corporation.

                        (3) In the case of the issuance of (i) options to
purchase or rights to subscribe for Common Stock (other than Excluded Stock),
(ii) securities by their terms convertible into or exchangeable for Common Stock
(other than Excluded Stock), or (iii) options to purchase or rights to subscribe
for securities by their terms convertible into or exchangeable for Common Stock
(other than Excluded Stock):

                (A) the aggregate maximum number of shares of Common Stock
deliverable upon exercise of such options to purchase or rights to subscribe for
Common Stock shall be deemed to have been issued at the time such options or
rights were issued and for a consideration equal to the consideration
(determined in the manner provided in subdivisions (1) and (2) above), if any,
received by the Corporation upon the issuance of such options or rights plus the
minimum purchase price provided in such options or rights for the Common Stock
covered thereby;

                (B) the aggregate maximum number of shares of Common Stock
deliverable upon conversion of or in exchange for any such convertible or
exchangeable securities, or upon the exercise

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of options to purchase or rights to subscribe for such convertible or
exchangeable securities and subsequent conversion or exchange thereof, shall be
deemed to have been issued at the time such securities were issued or such
options or rights were issued and for a consideration equal to the
consideration, if any, received by the Corporation for any such securities and
related options or rights (excluding any cash received on account of accrued
interest or accrued dividends), plus the minimum additional consideration, if
any, to be received by the Corporation upon the conversion or exchange of such
securities or the exercise of any related options or rights (the consideration
in each case to be determined in the manner provided in subdivisions (1) and (2)
above);

                (C) on any change in the number of shares of Common Stock
deliverable upon exercise of any such options or rights or conversion of or
exchange for such convertible or exchangeable securities, or on any change in
the minimum purchase price of such options, rights or securities, other than a
change resulting from the antidilution provisions of such options, rights or
securities, the Conversion Price shall forthwith be readjusted to such
Conversion Price as would have obtained had the adjustment made upon (x) the
issuance of such options, rights or securities not exercised, converted or
exchanged prior to such change, as the case may be, been made upon the basis of
such change or (y) the options or rights related to such securities not
converted or exchanged prior to such change, as the case may be, been made upon
the basis of such change; and

                (D) on the expiration of any such options or rights, the
termination of any such rights to convert or exchange or the expiration of any
options or rights related to such convertible or exchangeable securities, the
Conversion Price shall forthwith be readjusted to such Conversion Price as would
have obtained had the adjustment made upon the issuance of such options, rights,
convertible or exchangeable securities or options or rights related to such
convertible or exchangeable securities, as the case may be, been made upon the
basis of the issuance of only the number of shares of Common Stock actually
issued upon the exercise of such options or rights, upon the conversion or
exchange of such convertible or exchangeable securities or upon the exercise of
the options or rights related to such convertible or exchangeable securities, as
the case may be.

                        (vi) "Excluded Stock" shall mean:

                (A) All shares of capital stock issuable upon conversion of
shares of Series A Preferred Stock;

                (B) All shares of Common Stock or other securities issued to
employees, consultants or directors pursuant to stock option, stock grant, stock
purchase or similar plans or arrangements approved by the Board of Directors,
including without limitation upon the exercise of options currently outstanding;

                (C) All shares of Common Stock or other securities issued as a
dividend or other distribution in connection with which an automatic adjustment
in the Conversion Price is made; or

                (D) All shares of Common Stock issued pursuant to warrants or
other convertible securities outstanding as of the Initial Issue Date.

        All outstanding shares of Excluded Stock (including any shares issuable
upon conversion of the Series A Preferred Stock or upon exercise of outstanding
options, warrants or other convertible securities, but excluding shares reserved
for issuance for option plans for which options have not yet been granted) shall
be deemed to be outstanding for all purposes of the computations of paragraph
4(d)(v) above.

                                       10
<PAGE>   11

                        (vii) In any case in which this paragraph 4(d) shall
require that an adjustment be made immediately following a record date or an
effective date the Corporation may elect to defer (but only until the filing by
the Corporation with the stock transfer or conversion agent, as the case may be,
of the certificate required by paragraph 4(d)(ix)) issuing to the holder of any
share of Series A Preferred Stock converted after such record date or effective
date the shares of Common Stock issuable upon such conversion over and above the
shares of Common Stock issuable upon such conversion on the basis of the
Conversion Price prior to adjustment, and paying to such holder any amount of
cash in lieu of a fractional share.

                        (viii) No adjustment in the Conversion Price shall be
required to be made unless such adjustment would require an increase or decrease
of at least one percent of such price; provided, however, that any adjustments
which by reason of this paragraph (viii) are not required to be made shall be
carried forward and taken into account in any subsequent adjustment. All
calculations under this paragraph 4(d) shall be made to the nearest cent or to
the nearest 1/1000th of a share, as the case may be. Anything in this paragraph
4(d) to the contrary notwithstanding, the Corporation shall be entitled to make
such reduction in the Conversion Price, in addition to those required by this
paragraph 4(d), as it in its discretion shall determine to be advisable in order
that any stock dividend, subdivision of shares, distribution of rights to
purchase stock or securities, or distribution of securities convertible into or
exchangeable for stock hereafter made by the Corporation to its stockholders
shall not be taxable to the recipients. Except as set forth in paragraphs
4(d)(i), (ii), (iii) and (iv) above, the Conversion Price shall not be adjusted
for the issuance of Common Stock, or any securities convertible into or
exchangeable for Common Stock or carrying the right to purchase any of the
foregoing, in exchange for cash, property or services.

                        (ix) Whenever the Conversion Price is adjusted as herein
provided, (A) the Corporation shall promptly file with the stock transfer or
conversion agent, as appropriate, a certificate setting forth the Conversion
Price after such adjustment and a brief statement of the facts requiring such
adjustment and the manner of computing the same, which certificate shall be
conclusive evidence of the correctness of such adjustment, and (B) the
Corporation shall also mail or cause to be mailed by first class mail, postage
prepaid, as soon as practicable to each holder of record of shares of Series A
Preferred Stock a notice stating that the Conversion Price has been adjusted and
setting forth the adjusted Conversion Price. The stock transfer or conversion
agent, as the case may be, shall not be under any duty or responsibility with
respect to the certificate required by this paragraph 4(d)(ix) except to exhibit
the same to any holder of shares of Series A Preferred Stock who requests to
inspect it.

                        (x) In the event that at any time, as a result of an
adjustment made pursuant to paragraph 4(d), the holder of any share of Series A
Preferred Stock thereafter surrendered for conversion shall become entitled to
receive any shares of the Corporation other than shares of Class A Common Stock,
thereafter the Conversion Price of such other shares so receivable upon
conversion of any share of Series A Preferred Stock shall be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to Class A Common Stock contained in
this paragraph.

                        (xi) The Corporation from time to time may decrease the
Conversion Price by any amount for any period of time if the period is at least
20 days and if the decrease is irrevocable during the period. Whenever the
Conversion Price is so decreased, the Corporation shall mail to holders of
record of shares of Series A Preferred Stock a notice of the

                                       11
<PAGE>   12

decrease at least 15 days before the date the decreased Conversion Price takes
effect, and such notice shall state the decreased Conversion Price and the
period it will be in effect.

                (e) In case:

                        (i) the Corporation shall take any action which would
require an adjustment in the Conversion Price pursuant to paragraph 4(d); or

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

                        (iii) there shall be any reorganization or
reclassification of the Common Stock (other than a subdivision or combination of
the outstanding Common Stock and other than a change in the par value of the
Common Stock), or any merger or consolidation to which the Corporation is a
party or any statutory exchange of securities with another corporation and for
which approval of any stockholders of the Corporation is required, or any sale
or transfer of all or substantially all of the assets of the Corporation; or

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

then in each such case the Corporation shall cause to be given to the holders of
shares of Series A Preferred Stock and the stock transfer or conversion agent,
as appropriate, as promptly as possible, but in any event at least 20 days prior
to the applicable date hereinafter specified, a notice stating (A) the date on
which a record is to be taken for the purpose of such action or granting of
rights or warrants, or, if a record is not to be taken, the date as of which the
holders of Common Stock of record to be entitled to such distribution, rights or
warrants are to be determined, or (B) the date on which such reorganization,
reclassification, merger, consolidation, sale, transfer, statutory exchange,
dissolution, liquidation or winding-up is expected to become effective or occur,
and the date as of which it is expected that holders of Common Stock of record
shall be entitled to exchange their shares of Common Stock for securities, cash
or other property deliverable upon such reorganization, reclassification,
merger, consolidation, sale, transfer, statutory exchange, dissolution,
liquidation or winding-up. Failure to give such notice or any defect therein
shall not affect the legality or validity or the proceedings described in
paragraphs 4(e)(i), (ii), (iii) or (iv).

                (f) The Corporation covenants that it will at all times reserve
and keep available, free from preemptive rights, out of the aggregate of its
authorized but unissued shares of Class A Common Stock or its issued shares of
Class A Common Stock held in its treasury, or both, for the purpose of effecting
conversions of shares of Series A Preferred Stock, the full number of shares of
Class A Common Stock deliverable upon the conversion of all outstanding shares
of Series A Preferred Stock not theretofore converted and on or before (and as a
condition of) taking any action that would cause an adjustment of the Conversion
Price resulting in an increase in the number of shares of Class A Common Stock
deliverable upon conversion above the number thereof previously reserved and
available therefor, the Corporation shall take all such action so required. For
purposes of this paragraph 4(f), the number of shares of Class A Common Stock
which shall be deliverable upon the conversion of all outstanding shares of
Series A Preferred Stock shall be computed as if at the time of computation all
outstanding shares of Series A Preferred Stock were held by a single holder.

                                       12
<PAGE>   13

                Before taking any action which would cause an adjustment
reducing the Conversion Price below the then par value (if any) of the shares of
Class A Common Stock deliverable upon conversion of the shares of Series A
Preferred Stock, the Corporation shall take any corporate action which may, in
the opinion of its counsel, be necessary in order that the Corporation may
validly and legally issue fully paid and non-assessable shares of Class A Common
Stock at such adjusted Conversion Price.

                (g) The Corporation shall pay any and all documentary stamp,
issue or transfer taxes, and any other similar taxes payable in respect of the
issue or delivery of shares of Class A Common Stock upon conversions of shares
of Series A Preferred Stock pursuant hereto; provided, however, that the
Corporation shall not be required to pay any tax which may be payable in respect
of any transfer involved in the issue or delivery of shares of Class A Common
Stock in a name other than that of the holder of the shares of Series A
Preferred Stock to be converted and no such issue or delivery shall be made
unless and until the person requesting such issue or delivery has paid to the
Corporation the amount of any such tax or has established, to the satisfaction
of the Corporation, that such tax has been paid.

                (h) If the Common Stock issuable upon the conversion of shares
of Series A Preferred Stock shall be changed into the same or different number
of shares of any class or classes of stock, either by capital reorganization,
reclassification, or otherwise (other than a subdivision or combination of
shares or stock dividend provided for above, or a reorganization, merger,
consolidation, or sale of assets provided for in paragraph 3(c) above), then and
in each such event the holder of each such share of Series A Preferred Stock
shall have the right thereafter to convert such share into the kind and amount
of shares of stock and other securities and property receivable upon such
reorganization, reclassification or other change, by holders of the number of
shares of Common Stock into which such shares of Series A Preferred Stock might
have been converted immediately prior to such reorganization, reclassification,
or change, all subject to further adjustment as provided herein.

                The above provisions of this paragraph 4(h) shall similarly
apply to successive mergers, consolidations, sales, transfers or statutory
exchanges.

                (i) Covenant as to Common Stock. The Corporation covenants that
all shares of Common Stock which may be delivered upon conversions of shares of
Series A Preferred Stock will upon delivery be duly and validly issued and fully
paid and non-assessable, free of all liens and charges and not subject to any
preemptive rights.

            5. Optional Redemption by the Corporation

            (a) The Series A Preferred Stock may be redeemed, in whole or in
part, at the option of the Corporation at the Redemption Price, commencing on
the Initial Issue Date and continuing through and including June 30, 2001.

            (b) On or after the fourth anniversary of the Initial Issue Date,
the Series A Preferred Stock may be redeemed, in whole or in part, at the option
of the Corporation, provided that the average of the Quoted Price of the Class A
Common Stock for the thirty (30) trading days preceding the date that the
Corporation provides notice of such redemption to the holders of the Series A
Preferred Stock is at least one hundred and fifty percent (150%) of the Reset
Conversion Price. For the twelve-month period commencing on the fourth
anniversary of the Initial Issue Date any Series A Preferred Stock redeemed by
the Corporation pursuant to this subparagraph 5(b) shall be redeemed at

                                       13
<PAGE>   14

one hundred and six percent (106%) of the Redemption Price (the "Premium
Redemption Price"). On each subsequent anniversary of the Initial Issue Date,
the Premium Redemption Price shall decrease by 100 basis points for the
following twelve-month period. Commencing on the tenth anniversary of the
Initial Issue Date and thereafter, the Premium Redemption Price shall be equal
to the Redemption Price.

                (c) The date fixed by the Corporation on which the Redemption
Price or Premium Redemption Price is paid is referred to as the "Redemption
Date."

                (d) In case of redemption of less than all shares of Series A
Preferred Stock at the time outstanding, the shares to be redeemed shall be
selected pro rata or by lot, among such applicable series, as determined by the
Corporation in its sole discretion.

                (e) Notice of any redemption shall be sent by or on behalf of
the Corporation not more than thirty (30) days nor less than seven (7) days
prior to the Redemption Date, by first class mail, postage prepaid, to all
holders of record of the Series A Preferred Stock at their respective last
addresses as they shall appear on the books of the Corporation; provided,
however, that no failure to give such notice or any defect therein or in the
mailing thereof shall affect the validity of the proceedings for the redemption
of any shares of Series A Preferred Stock except as to the holder to whom the
Corporation has failed to give notice or except as to the holder to whom notice
was defective. Such notice shall state: (i) the Redemption Date; (ii) the
Redemption Price or the Premium Redemption Price, as applicable; (iii) the
number of shares of Series A Preferred to be redeemed and, if less than all
shares held by such holder are to be redeemed, the number of such shares to be
redeemed; (iv) the place or places where certificates for such shares are to be
surrendered for payment of the Redemption Price or Premium Redemption Price, as
applicable; and (v) that dividends on the shares to be redeemed will cease to
accrue on the Redemption Date. Upon the mailing of any such notices of
redemption, the Corporation shall become obligated to redeem at the Redemption
Date specified thereon all shares called for redemption.

                (f) If notice has been mailed in accordance with subparagraph
5(e) above and provided that on or before the Redemption Date specified in such
notice, all funds necessary for such redemption shall have been set aside by the
Corporation, separate and apart from its other funds in trust for the pro rata
benefit of the holders of the shares so called for redemption, so as to be, and
to continue to be available therefor, then, from and after the Redemption Date,
dividends on the shares of the Series A Preferred Stock so called for redemption
shall cease to accrue, and said shares shall no longer be deemed to be
outstanding and shall not have the status of shares of Series A Preferred Stock,
and all rights of the holders thereof as stockholders of the Corporation (except
the right to receive from the Corporation the Redemption Price or the Premium
Redemption Price, as applicable) shall cease. Upon surrender, in accordance with
said notice, of the certificates for any shares so redeemed (properly endorsed
or assigned for transfer, if the Corporation shall so require and the notice
shall so state), such shares shall be redeemed by the Corporation at the
Redemption Price or Premium Redemption Price, as applicable. In case fewer than
all the shares represented by any such certificate are redeemed, a new
certificate or certificates shall be issued representing the unredeemed shares
without cost to the holder thereof.

                (g) Any funds deposited with a bank or trust company for the
purpose of redeeming Series A Preferred Stock shall be irrevocable except that:

                                       14
<PAGE>   15

                        (i) the Corporation shall be entitled to receive from
such bank or trust company the interest or other earnings, if any, earned on any
money so deposited in trust, and the holders of any shares redeemed shall have
no claim to such interest or other earnings; and

                        (ii) any balance of monies so deposited by the
Corporation and unclaimed by the holders of the Series A Preferred Stock
entitled thereto at the expiration of two (2) years from the applicable
Redemption Date shall be repaid, together with any interest or other earnings
earned thereon, to the Corporation, and after any such repayment, the holders of
the shares entitled to the funds so repaid to the Corporation shall look only to
the Corporation for payment without interest or other earnings.

                (h) No Series A Preferred Stock may be redeemed except with
funds legally available for the payment of the Redemption Price or the Premium
Redemption Price, as applicable.

                (i) Notwithstanding the foregoing provisions of this paragraph
5, unless the full cumulative dividends on all outstanding shares of Series A
Preferred Stock shall have been paid or contemporaneously are declared and paid
for all past dividend periods, none of the shares of Series A Preferred Stock
shall be redeemed unless all outstanding shares of Series A Preferred Stock are
simultaneously redeemed.

                (j) All shares of Series A Preferred Stock redeemed pursuant to
this paragraph 5 shall be retired and shall be restored to the status of
authorized and unissued shares of preferred stock, without designation as to
series and may thereafter be reissued as shares of any series of preferred
stock.

                (k) All decisions to be made by the Corporation relating to
optional redemption of the Series A Preferred Stock under this paragraph 5 shall
be made by a committee of the Corporation's Board of Directors comprised
entirely of directors who are independent of any holder of the Series A
Preferred Stock. The Corporation's Board shall cause such an independent
committee to be formed and properly constituted upon the written request of any
member of the Board of Directors. In the event, however, that it is not possible
for such a committee of independent directors to so serve, then the Corporation
shall use an alternative means to cause all such decisions to be made
independent of the interests of any holder of Series A Preferred Stock.

                6. Exchange.

                (a) The Corporation, at its option, may, commencing on the
Initial Issue Date and continuing through and including June 30, 2001, exchange
all or a portion of the shares of Series A Preferred Stock then outstanding for
the Exchange Debentures. If the Corporation elects to exercise this exchange
option, each holder of shares of the Series A Preferred Stock subject to such
exchange option will be entitled to receive on the Exchange Date (as defined
below) an Exchange Debenture having an aggregate principal amount equal to the
Liquidation Preference, plus accrued and unpaid dividends (computed pursuant to
the following sentence), for all outstanding shares of Series A Preferred Stock
held by such holder. Solely for purpose of determining the principal amount of
the Exchange Debenture to be issued pursuant to this paragraph 6, the shares of
Series A Preferred Stock subject to the exchange shall be deemed to have accrued
dividends at the rate of twelve percent (12%) per annum of the Liquidation
Preference retroactive to the Initial Issue Date of such shares.

                                       15
<PAGE>   16

                (b) Notice of the intention to exchange shall be sent by or on
behalf of the Corporation not more than thirty (30) days nor less than seven (7)
days prior to the date fixed for the exchange (the "Exchange Date"), by first
class mail, postage prepaid, to all holders of record of Series A Preferred
Stock at their respective last addresses as they shall appear on the books of
the Corporation; provided, however, that no failure to give such notice or any
defect therein or in the mailing thereof shall affect the validity of the
proceedings for the exchange of any Series A Preferred Stock except as to the
holder to whom the Corporation has failed to give notice or except as to a
holder to whom notice was defective. Such notice shall state: (i) the Exchange
Date; (ii) the place or places where certificates for such shares are to be
surrendered for exchange; and (iii) that dividends on the shares to be exchanged
will cease to accrue on the Exchange Date. The Exchange Debentures to be issued
in exchange shall be duly executed and issued as of the Exchange Date and the
Corporation will pay interest on the Exchange Debentures at the rate and on the
dates specified in such Exchange Debenture from the Exchange Date.

                (c) The Corporation will pay any and all taxes that may be
payable in respect of the issuance or delivery of Exchange Debentures in
exchange for shares of Series A Preferred Stock. The Corporation shall not,
however, be required to pay any tax which may be payable in respect of any
transfer involved in the issuance and delivery of Exchange Debentures in a name
other than that in which the shares of Series A Preferred Stock so exchanged
were registered, and no such issuance or delivery shall be made unless and until
the person requesting such issuance has paid to the Corporation the amount of
any such tax or has established to the satisfaction of the Corporation that such
tax has been paid.

                (d) If notice of any exchange by this Corporation pursuant to
this paragraph 6 shall have been mailed as provided in subparagraph 6(b) above,
and if on or before the Exchange Date the Exchange Debentures shall have been
duly executed and issued, then on and after the close of business on the
Exchange Date, the shares of Series A Preferred Stock to be exchanged,
notwithstanding that any certificate therefor shall not have been surrendered
for cancellation, shall be retired and shall be restored to the status of
authorized and unissued shares of preferred stock, without designation as to
series and may thereafter be reissued as shares of any series of preferred
stock, and all rights with respect to such shares shall forthwith cease and
terminate, except the right of the holder thereof to receive upon surrender of
their certificates the Exchange Debentures.

                (e) All decisions to be made by the Corporation relating to
exchange of Series A Preferred Stock for Exchange Debentures under this
paragraph 6 shall be made by a committee of the Corporation's Board of Directors
comprised entirely of directors who are independent of any holder of the Series
A Preferred Stock. The Corporation's Board shall cause such an independent
committee to be formed and properly constituted upon the written request of any
member of the Board of Directors. In the event, however, that it is not possible
for such a committee of independent directors to so serve, then the Corporation
shall use an alternative means to cause all such decisions to be made
independent of the interests of any holder of Series A Preferred Stock.

                7. Voting Rights.

                Each holder of outstanding shares of Series A Preferred Stock
shall be entitled to the number of votes equal to the number of whole shares of
Common Stock into which the shares of Series A Preferred Stock held by such
holder are convertible (as adjusted from time to time pursuant to Section 4
hereof), at each meeting of stockholders of the Corporation (and written actions
of stockholders in lieu of meetings) with respect to any and all matters
presented to the stockholders of the

                                       16
<PAGE>   17

Corporation for their action or consideration. Except as provided by law holders
of Series A Preferred Stock shall vote together with the holders of Common Stock
as a single class.

                8. Protective Provisions. For so long as shares of Series A
Preferred Stock shall be outstanding, the Corporation shall not, without first
obtaining the approval (by vote or written consent, as provided by law) of the
holders of at least 50% of the outstanding shares of Series A Preferred Stock:

                (i) Create Any New Class or Series. Authorize, create or issue
any new class or series of stock having any preference or priority superior to
or on a par with the Series A Preferred Stock.

                (ii) No Adverse Change to Charter. Amend or repeal any provision
of, or add any provision to, the Corporation's Certificate of Incorporation if
such action would adversely alter or change in any material respect the rights,
preferences, privileges or restrictions of the Series A Preferred Stock.

                (iii) Incur Any Indebtedness. Incur any indebtedness for
borrowed money other than in the ordinary course business.

                9. Exclusion of Other Rights.

                Except as may otherwise be required by law, the shares of Series
A Preferred Stock shall not have any voting powers, preferences and relative,
participating, optional or other special rights, other than those specifically
set forth in this resolution (as such resolution may be amended from time to
time) and in the Certificate of Incorporation. The shares of Series A Preferred
Stock shall have no preemptive or subscription rights.

                10. Headings of Subdivisions.

                The headings of the various subdivisions hereof are for
convenience of reference only and shall not affect the interpretation of any of
the provisions hereof.

                11. Severability of Provisions.

                If any voting powers, preferences and relative, participating,
optional and other special rights of the Series A Preferred and qualifications,
limitations and restrictions thereof set forth in this resolution (as such
resolution may be amended from time to time) is invalid, unlawful or incapable
of being enforced by reason of any rule of law or public policy, all other
voting powers, preferences and relative, participating, optional and other
special rights of Series A Preferred Stock and qualifications, limitations and
restrictions thereof set forth in this resolution (as so amended) which can be
given effect without the invalid, unlawful or unenforceable voting powers,
preferences and relative, participating, optional and other special rights of
Series A Preferred Stock and qualifications, limitations and restrictions
thereof shall, nevertheless, remain in full force and effect, and no voting
powers, preferences and relative, participating, optional or other special
rights of Series A Preferred Stock and qualifications, limitations and
restrictions thereof herein set forth shall be deemed dependent upon any other
such voting powers, preferences and relative, participating, optional or other
special rights of Series A Preferred Stock and qualifications, limitations and
restrictions thereof unless so expressed herein.

                                       17
<PAGE>   18

                IN WITNESS WHEREOF, the Corporation has caused this certificate
to be duly executed by David Schneider, President and Chief Executive Officer,
and attested by Stanley E. Maron, its secretary, this 14th day of December,
2000.

                                            NEXTERA ENTERPRISES, INC.

                                            By: /s/ Michael P. Muldowney
                                               ---------------------------------
                                            Michael P. Muldowney
                                            Chief Financial Officer

ATTEST:

By: /s/ Stanley E. Maron
   ---------------------------------
   Stanley E. Maron, Secretary

                                       18<PAGE>   1

                                                                     EXHIBIT 4.2

                            NOTE CONVERSION AGREEMENT

                                 BY AND BETWEEN

                            KNOWLEDGE UNIVERSE, INC.

                                       AND

                            NEXTERA ENTERPRISES, INC.

                          Dated as of December 14, 2000

<PAGE>   2

                            NOTE CONVERSION AGREEMENT

        THIS NOTE CONVERSION AGREEMENT (the "Agreement") is made as of the 14th
day of December, 2000 by and between NEXTERA ENTERPRISES, INC., a Delaware
corporation (the "Company"), and KNOWLEDGE UNIVERSE, INC., a Delaware
corporation (the "Investor").

        A. Investor and the Company are party to that certain Amended and
Restated Debenture of Nextera Enterprises, Inc., in the original principal
amount of $24,970,000 dated as of December 31, 1997, as amended (the "Note")
which evidences indebtedness of the Company owed to an affiliate of the
Investor.

        B. Investor and the Company have agreed that Investor shall convert
$21,000,000 of the outstanding principal balance and accrued interest under the
Note into shares of Series A Preferred Stock of the Company, par value $.001 per
share (the "Series A Preferred Stock"), on the terms and conditions set forth in
this Agreement.

        NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and agreements herein contained, and intending to be legally bound
hereby, the Company and the Investor hereby agree as follows:

        1. Issuance of Preferred Stock and Cancellation of Note.

                1.1 Outstanding Balance of the Note. Investor and the Company
agree that as of the date hereof (i) the aggregate of the outstanding principal
amount of the Note and the accrued and unpaid interest is $31,939,351.22 and
(ii) following the conversion of $21,000,000 of such amount, the remaining
unpaid balance under the Note will be $10,939,351.22 (the "Remaining Balance").

                1.2 Authorization. Prior to the Closing, the Company shall have
authorized the issuance to the Investor of 210,000 shares of Series A Preferred
Stock, each with a stated amount of $100. The Company shall adopt on or before
the Closing the Certificate of Designations in the form attached hereto as
Exhibit A (the "Certificate"), which Certificate shall set forth the rights,
preferences and privileges of the Series A Preferred Stock.

                1.3 Issuance and Delivery of Series A Preferred Stock and
Cancellation of Note. Upon the terms and subject to the conditions set forth
herein, at the Closing (defined below), (i) the Company shall issue and deliver
to the Investor certificate(s) evidencing 210,000 shares of Series A Preferred
Stock, (ii) the Company and the Investor hereby agree that $21,000,000 of
outstanding balance of the Note shall be extinguished. The Note shall otherwise
remain outstanding, and the Remaining Balance thereunder shall continue to be
payable thereunder in accordance with the terms of the Note.

<PAGE>   3

                1.4 Closing. The issuance of the Series A Preferred Stock shall
take place upon the execution of this Agreement by the Company and the Investor
at such place as the Company and the Investor mutually agree upon, orally or in
writing (which time and place are designated as the "Closing").

        2. Representations and Warranties of the Company. The Company hereby
represents and warrants to the Investor that as of the date of this Agreement:

                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. The Company has all corporate power and authority
to enter into and perform this Agreement and the Certificate and to carry out
the transactions contemplated hereby and thereby.

                2.2 Authorization. All corporate action on the part of the
Company, its officers, directors and stockholders necessary for the
authorization, execution and delivery of this Agreement and the Certificate, the
performance of all obligations of the Company hereunder and thereunder and the
authorization, issuance and delivery of the shares of Series A Preferred Stock
has been taken, and each of this Agreement and the Certificate has been duly
executed and delivered by the Company and constitutes a valid and legally
binding obligation of the Company, enforceable in accordance with its terms.

                2.3 Valid Issuance of Shares of Series A Preferred Stock. The
shares of Series A Preferred Stock that are being issued to the Investor
pursuant to this Agreement are duly and validly authorized and, when issued,
sold and delivered in accordance with the terms hereof for the consideration
duly expressed herein, will be duly and validly issued, fully paid and
nonassessable. The shares of Class A Class A Common Stock, par value $.001 per
share (the "Class A Class A Common Stock") issuable upon conversion of the
Series A Preferred Stock when issued in accordance with the Certificate will be
validly issued, fully paid and nonassessable. The sale of the Series A Preferred
Stock and the issuance of shares of Class A Common Stock upon conversion of the
Series A Preferred Stock are not and will not be subject to any preemptive
rights or rights of first refusal that have not been properly waived or complied
with. An amount of Class A Common Stock sufficient to permit conversion or
exercise of each of the shares of Series A Preferred Stock has been duly and
validly reserved for issuance.

                2.4 No Conflict or Violation. Neither the execution, delivery or
performance by the Company of this Agreement or the Certificate nor the
consummation of the transactions contemplated hereby or thereby by the Company,
nor compliance by the Company with any of the provisions hereof or thereof, will
(a) violate or conflict with any provision of the Company's Certificate of
Incorporation or By-Laws, (b) violate, conflict with, or result in a breach of
any provision of, or constitute a default (or an event which, with notice or
lapse of time or both, would constitute a default) under, or result in the
termination of, or accelerate the performance required by, or result in a right
of termination or acceleration under, or result in the creation of any
encumbrance upon any of the Company's assets under, any of the terms, conditions
or provisions of any contract, indebtedness, note, bond, indenture, security or
pledge agreement, commitment, license, lease, franchise, permit, agreement, or
other instrument or obligation (i) to

                                      -2-
<PAGE>   4

which the Company is a party or (ii) by which the Company's assets are bound,
(c) violate any law, statute, rule, regulation, ordinance, code, order,
judgment, ruling, writ, injunction, decree, permit or award, or (d) impose any
encumbrance, restriction or charge on the Company's assets or business.

        3. Representations and Warranties of Investor. The Investor hereby
represents and warrants to the Company that:

                3.1 Accredited Investor. The Investor is an Accredited Investor
within the meaning of Rule 501(a) under the Securities Act of 1933, as amended
(the "Securities Act") and the shares of Series A Preferred Stock to be acquired
by it pursuant to this Agreement are being acquired for its own account and,
notwithstanding the Investor's right to transfer such shares of Series A
Preferred Stock in accordance with this Agreement, the Investor will not offer,
sell, transfer, pledge, hypothecate or otherwise dispose of the shares of Series
A Preferred Stock in violation of the Securities Act. The Investor has such
knowledge and experience in financial and business matters so as to be capable
of evaluating the merits and risks of its investment in the shares of Series A
Preferred Stock, and the Investor is capable of bearing the economic risks of
such investment. The Investor was not organized for the purpose of acquiring the
shares of Series A Preferred Stock from the Company.

                3.2 Authorization. All corporate action on the part of the
Investor, its officers, directors and stockholders necessary for the
authorization, execution and delivery of this Agreement, the performance of all
obligations of the Investor hereunder and the cancellation of the Note has been
taken, and this Agreement has been duly executed and delivered by the Investor
and constitutes a valid and legally binding obligation of the Investor,
enforceable in accordance with its terms.

                3.3 Receipt of Information. The Investor has received all the
information the Investor considers necessary or appropriate for deciding whether
to purchase the shares of Series A Preferred Stock. The Investor further
represents that the Investor has had an opportunity to ask questions and receive
answers from the Company regarding the terms and conditions of the offering of
the shares of Series A Preferred Stock and the business, properties, prospects
and financial condition of the Company and to obtain additional information (to
the extent the Company possessed such information or could acquire it without
unreasonable effort or expense) necessary to verify the accuracy of any
information furnished to the Investor or to which the Investor had access.

                3.4 Restricted Securities. The Investor understands that the
shares of Series A Preferred Stock (and any Class A Common Stock issued on
conversion thereof) may not be sold, transferred, or otherwise disposed of
without registration under the Securities Act or an exemption therefore.

                3.5 Legend. To the extent applicable, each certificate
evidencing any of the shares of Series A Preferred Stock (or the underlying
Class A Common Stock) shall be endorsed with a legend substantially in the form
set forth below:

                                      -3-
<PAGE>   5

        "THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
        SECURITIES ACT OF 1933, AS AMENDED AND MAY NOT BE SOLD, TRANSFERRED,
        ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH
        ACT, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR OTHER
        EVIDENCE, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH
        REGISTRATION IS NOT REQUIRED."

        4. Survival of Representations, Covenants, Etc. All statements contained
in any certificate, schedule, exhibit or instrument or conveyance delivered by
or on behalf of the parties pursuant to this Agreement or in connection with the
transactions contemplated hereby or thereby shall be deemed to be
representations and warranties by the parties hereunder. The representations,
warranties, covenants and agreements of the Company and the Investor contained
herein and therein shall survive the Closing under this Agreement.

        5. Conditions of Investor's Obligations at Closing. The obligations of
the Investor under Section 1 of this Agreement are subject to the fulfillment,
on or before the Closing, of each of the following conditions:

        6. 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 the Closing.

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

                6.2 Consents. All permits and waivers necessary to the
consummation of the transactions contemplated hereby and for the ownership by
the Investor of the shares of Series A Preferred Stock, including all required
third-party consents shall have been obtained.

                6.3 Authorized and Reserved Preferred Stock. The Company shall
have authorized and reserved (a) such number of shares of Series A Preferred
Stock as are necessary to allow the issuance of the Series A Preferred Stock
under this Agreement and (b) such additional shares of Class A Class A Common
Stock as are necessary to permit conversion in full of each of the shares of
Series A Preferred Stock.

                6.4 Certificate of Designation. The Company shall have adopted
the Certificate and filed the Certificate with the Secretary of State of the
State of Delaware.

        7. Conditions of the Company's Obligations at Closing. The obligations
of the Company to the Investor under this Agreement are subject to the
fulfillment, on or before the Closing, of each of the following conditions by
the Investor:

                                      -4-
<PAGE>   6

                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 Performance. The Investor shall have performed and complied
in all material respects 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.

                7.3 Conversion of Note. The Investor shall have surrendered the
Note to the Company for cancellation as specified in Section 1.

        8. Further Assurances. Upon the terms and subject to the conditions
contained herein, the parties agree, both before and after the Closing, (a) to
use all reasonable efforts to take, or cause to be taken, all actions and to do,
or cause to be done, all things necessary, proper or advisable to consummate and
make effective the transactions contemplated by this Agreement and the
Certificate, (b) to execute any documents, instruments or conveyances of any
kind which may be reasonably necessary or advisable to carry out any of the
transactions contemplated hereunder, and (c) to cooperate with each other in
connection with the foregoing. Without limiting the foregoing, the parties agree
to use their respective best efforts (i) to obtain all necessary waivers,
consents and approvals from other parties to consummate the transactions
contemplated by this Agreement and the Certificate (including without
limitation, on the part of the Company, all necessary approvals to ensure that
(A) the transactions contemplated by this Agreement and the Certificate are
treated as Board approved transactions for purposes of Section 203 of the
Delaware General Corporation Law, and (B) any shares of Class A Common Stock
issued upon conversion of the shares of Series A Preferred Stock will be duly
and validly issued, fully paid and nonassessable.

        9. Registration Rights. The Company and the Investor covenant and agree
as follows:

                9.1 Definitions. For purposes of this Section 9:

                        9.1.1 The terms "register," "registered," and
"registration" refer to a registration effected by preparing and filing a
registration statement or similar document in compliance with the Securities
Act, and the declaration or ordering of effectiveness of such registration
statement or document;

                        9.1.2 The term "Registrable Securities" means the shares
of Class A Common Stock issuable or issued upon conversion of the Series A
Preferred Stock, provided, however, that the foregoing definition shall exclude
in all cases any Registrable Securities sold by a person in a transaction in
which his or her rights under this Agreement are not assigned. Notwithstanding
the foregoing, Class A Common Stock or other securities shall only be treated as
Registrable Securities if and so long as they have not been (A) sold to or
through a broker or dealer or underwriter in a public distribution or a public
securities transaction, or (B) sold in a transaction exempt from the
registration and prospectus delivery requirements of the Securities

                                      -5-
<PAGE>   7
Act under Section 4(1) thereof so that all transfer restrictions, and
restrictive legends with respect thereto, if any, are removed upon the
consummation of such sale;

                        9.1.3 The number of shares of "Registrable Securities
then outstanding" shall be determined by the number of shares of Class A Common
Stock outstanding which are, and the number of shares of Class A Common Stock
issuable pursuant to then exercisable or convertible securities which are,
Registrable Securities;

                        9.1.4 The term "Holder" means any person owning or
having the right to acquire Registrable Securities or any assignee thereof in
accordance with Section 9.12 of this Agreement;

                        9.1.5 The term "Form S-3" means such form under the
Securities Act as in effect on the date hereof or any successor form under the
Securities Act; and

                        9.1.6 The term "SEC" means the Securities and Exchange
Commission.

                9.2 Request for Registration.

                        9.2.1 If the Company shall receive at any time after
June 30, 2001 a written request from the Holders of a majority of the
Registrable Securities then outstanding that the Company file a registration
statement under the Securities Act covering the registration of at least
twenty-five percent (25%) of the Registrable Securities then outstanding (or a
lesser percent if the anticipated aggregate offering price, net of underwriting
discounts and commissions, would exceed $10,000,000), then the Company shall,
within ten (10) days of the receipt thereof, give written notice of such request
to all Holders and shall, subject to the limitations of subsection 9.2.2, use
its best efforts to effect as soon as practicable, the registration under the
Securities Act of all Registrable Securities which the Holders request to be
registered within twenty (20) days of the mailing of such notice by the Company
in accordance with Section 10.1.

                        9.2.2 If the Holders initiating the registration request
hereunder ("Initiating Holders") intend to distribute the Registrable Securities
covered by their request by means of an underwriting, they shall so advise the
Company as a part of their request made pursuant to this Section 9.2 and the
Company shall include such information in the written notice referred to in
subsection 9.2.1. The underwriter will be selected by a majority in interest of
the Initiating Holders and shall be reasonably acceptable to the Company. In
such event, the right of any Holder to include his Registrable Securities in
such registration shall be conditioned upon such Holder's participation in such
underwriting and the inclusion of such Holder's Registrable Securities in the
underwriting (unless otherwise mutually agreed by a majority in interest of the
Initiating Holders and such Holder) to the extent provided herein. All Holders
proposing to distribute their securities through such underwriting shall
(together with the Company as provided in subsection 9.5.5) enter into an
underwriting agreement in customary form with the underwriter or underwriters
selected for such underwriting. Notwithstanding any other provision of this
Section 9.2, if the underwriter advises the Initiating Holders in writing that
marketing factors require a limitation of the number of shares to be
underwritten, then the Initiating Holders shall so

                                      -6-
<PAGE>   8

advise all Holders of Registrable Securities which would otherwise be
underwritten pursuant hereto, and the number of shares of Registrable Securities
that may be included in the underwriting shall be allocated among all Holders
thereof, including the Initiating Holders, in proportion (as nearly as
practicable) to the amount of Registrable Securities of the Company owned by
each Holder; provided, however, that the number of shares of Registrable
Securities to be included in such underwriting shall not be reduced unless all
other securities are first entirely excluded from the underwriting.

                        9.2.3 Notwithstanding the foregoing, if the Company
shall furnish to Holders requesting a registration statement pursuant to this
Section 9.2, a certificate signed by the President of the Company stating that
in the good faith judgment of the Board of Directors of the Company, it would be
seriously detrimental to the Company and its shareholders for such registration
statement to be filed and it is therefore essential to defer the filing of such
registration statement, the Company shall have the right to defer such filing
for a period of not more than 120 days after receipt of the request of the
Initiating Holders; provided, however, that the Company may not utilize this
right more than once in any twelve-month period.

                        9.2.4 In addition, the Company shall not be obligated to
effect, or to take any action to effect, any registration pursuant to this
Section 9.2:

                                (a) After the Company has effected two (2)
registrations pursuant to this Section 9.2 and such registrations have been
declared or ordered effective;

                                (b) During the period starting with the date
sixty (60) days prior to the Company's good faith estimate of the date of filing
of, and ending on a date one hundred eighty (180) days after the effective date
of, a registration subject to Section 9.3 hereof; provided that the Company is
actively employing in good faith all reasonable efforts to cause such
registration statement to become effective; or

                                (c) If the Initiating Holders propose to dispose
of shares of Registrable Securities that may be immediately registered on Form
S-3 pursuant to a request made pursuant to Section 9.4 below.

                9.3 Company Registration. If (but without any obligation to do
so) the Company proposes to register after June 30, 2001 (including for this
purpose a registration effected by the Company for shareholders other than the
Holders) any of its stock under the Securities Act in connection with the public
offering of such securities solely for cash (other than a registration relating
solely to the sale of securities to participants in a Company stock plan or a
transaction covered by Rule 145 under the Securities Act, a registration in
which the only stock being registered is Class A Common Stock issuable upon
conversion of debt securities which are also being registered, or any
registration on any form which does not include substantially the same
information as would be required to be included in a registration statement
covering the sale of the Registrable Securities), the Company shall, at such
time, promptly give each Holder written notice of such registration. Upon the
written request of each Holder given within twenty (20) days after mailing of
such notice by the Company in accordance with Section 10.1, the Company

                                      -7-
<PAGE>   9

shall, subject to the provisions of Section 9.8, cause to be registered under
the Securities Act all of the Registrable Securities that each such Holder has
requested to be registered.

                9.4 Form S-3 Registration. In case the Company shall receive
after June 30, 2001 from any Holder or Holders of not less than fifty percent
(50%) of the Registrable Securities then outstanding a written request or
requests that the Company effect a registration on Form S-3 and any related
qualification or compliance with respect to all or a part of the Registrable
Securities owned by such Holder or Holders, the Company will:

                        9.4.1 Promptly give written notice of the proposed
registration, and any related qualification or compliance, to all other Holders;
and

                        9.4.2 As soon as practicable, effect such registration
and all such qualifications and compliances as may be so requested and as would
permit or facilitate the sale and distribution of all or such portion of such
Holder's or Holders' Registrable Securities as are specified in such request,
together with all or such portion of the Registrable Securities of any other
Holder or Holders joining in such request as are specified in a written request
given within 15 days after receipt of such written notice from the Company;
provided, however, that the Company shall not be obligated to effect any such
registration, qualification or compliance, pursuant to this Section 9.4: (i) if
Form S-3 is not available for such offering by the Holders; (ii) if the Holders,
together with the holders of any other securities of the Company entitled to
inclusion in such registration, propose to sell Registrable Securities and such
other securities (if any) at an aggregate price to the public (net of any
underwriters' discounts or commissions) of less than $2,000,000; (iii) if the
Company shall furnish to the Holders a certificate signed by the President of
the Company stating that in the good faith judgment of the Board of Directors of
the Company, it would be seriously detrimental to the Company and its
shareholders for such Form S-3 Registration to be effected at such time, in
which event the Company shall have the right to defer the filing of the Form S-3
registration statement for a period of not more than 120 days after receipt of
the request of the Holder or Holders under this Section 9.4; provided, however,
that the Company shall not utilize this right more than once in any twelve month
period; (iv) if the Company has, within the twelve (12) month period preceding
the date of such request, already effected a registration on Form S-3 for the
Holders pursuant to this Section 9.4; (v) in any particular jurisdiction in
which the Company would be required to qualify to do business or to execute a
general consent to service of process in effecting such registration,
qualification or compliance; or (vi) during the period ending one hundred eighty
(180) days after the effective date of a registration statement subject to
Section 9.3.

                        9.4.3 Subject to the foregoing, the Company shall file a
registration statement covering the Registrable Securities and other securities
so requested to be registered as soon as practicable after receipt of the
request or requests of the Holders. Registrations effected pursuant to this
Section 9.4 shall not be counted as demands for registration or registrations
effected pursuant to Sections 9.2 or 9.3, respectively.

                                      -8-
<PAGE>   10

               9.5 Obligations of the Company. Whenever required under this
Section 9 to effect the registration of any Registrable Securities, the Company
shall, as expeditiously as reasonably possible:

                        9.5.1 Prepare and file with the SEC a registration
statement with respect to such Registrable Securities and use its best efforts
to cause such registration statement to become effective, and, upon the request
of the Holders of a majority of the Registrable Securities registered
thereunder, keep such registration statement effective for up to one hundred
twenty (120) days.

                        9.5.2 Prepare and file with the SEC such amendments and
supplements to such registration statement and the prospectus used in connection
with such registration statement as may be necessary to comply with the
provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement for up to one hundred twenty
(120) days.

                        9.5.3 Furnish to the Holders such numbers of copies of a
prospectus, including a preliminary prospectus, in conformity with the
requirements of the Securities Act, and such other documents as they may
reasonably request in order to facilitate the disposition of Registrable
Securities owned by them.

                        9.5.4 Use its best efforts to register and qualify the
securities covered by such registration statement under such other securities or
Blue Sky laws of such jurisdictions as shall be reasonably requested by the
Holders, provided that the Company shall not be required in connection therewith
or as a condition thereto to qualify to do business or to file a general consent
to service of process in any such states or jurisdictions.

                        9.5.5 In the event of any underwritten public offering,
enter into and perform its obligations under an underwriting agreement, in usual
and customary form, with the managing underwriter of such offering. Each Holder
participating in such underwriting shall also enter into and perform its
obligations under such an agreement.

                        9.5.6 Notify each Holder of Registrable Securities
covered by such registration statement at any time when a prospectus relating
thereto is required to be delivered under the Securities Act of the happening of
any event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in the light of the circumstances
then existing, such obligation to continue for one hundred twenty (120) days.

                        9.5.7 Cause all such Registrable Securities registered
pursuant hereunder to be listed on each securities exchange on which similar
securities issued by the Company are then listed.

                                      -9-
<PAGE>   11

                        9.5.8 Provide a transfer agent and registrar for all
Registrable Securities registered pursuant hereunder and a CUSIP number for all
such Registrable Securities, in each case not later than the effective date of
such registration.

                9.6 Furnish Information. It shall be a condition precedent to
the obligations of the Company to take any action pursuant to this Section 9
with respect to the Registrable Securities of any selling Holder that such
Holder shall furnish to the Company such information regarding itself, the
Registrable Securities held by it, and the intended method of disposition of
such securities as shall be required to effect the registration of such Holder's
Registrable Securities. The Company shall have no obligation with respect to any
registration requested pursuant to Section 9.2 or Section 9.4 of this Agreement
if, as a result of the application of the preceding sentence, the number of
shares or the anticipated aggregate offering price of the Registrable Securities
to be included in the registration does not equal or exceed the number of shares
or the anticipated aggregate offering price required to originally trigger the
Company's obligation to initiate such registration as specified in subsection
9.2.1 or subsection 9.4.2, whichever is applicable.

                9.7 Expenses of Registration.

                        9.7.1 Demand Registration. All expenses other than
underwriting discounts and commissions incurred in connection with
registrations, filings or qualifications pursuant to Section 9.2, including
(without limitation) all registration, filing and qualification fees, printers'
and accounting fees, fees and disbursements of counsel for the Company, and the
reasonable fees and disbursements of one counsel for the selling Holders
selected by them with the approval of the Company, which approval shall not be
unreasonably withheld, shall be borne by the Company; provided, however, that
the Company shall not be required to pay for any expenses of any registration
proceeding begun pursuant to Section 9.2 if the registration request is
subsequently withdrawn at the request of the Holders of a majority of the
Registrable Securities to be registered (in which case all participating Holders
shall bear such expenses), unless the Holders of a majority of the Registrable
Securities agree to forfeit their right to one demand registration pursuant to
Section 9.2.

                        9.7.2 Registration Fees. All expenses incident to the
Company's performance of or compliance with Sections 9.3 and 9.4 will be borne
by the Company; provided, however, the Company shall not bear the costs and
expenses of underwriters' commissions, brokerage fees or transfer taxes for any
selling Holder, or the fees and expenses of any accountants or other
representatives retained by any selling Holder, including the costs and expenses
of counsel for any selling Holder incurred in connection with registrations,
filings or qualifications of Registrable Securities pursuant to Sections 9.3 and
9.4, which costs and expenses shall be borne pro rata by any Holder
participating in such registrations.

                9.8 Underwriting Requirements. In connection with any offering
involving an underwriting of shares of the Company's capital stock, the Company
shall not be required under Section 9.3 to include any of the Holders'
securities in such underwriting unless they accept the terms of the underwriting
as agreed upon between the Company and the underwriters selected by

                                      -10-
<PAGE>   12

it (or by other persons entitled to select the underwriters), and then only in
such quantity as the underwriters determine in their sole discretion will not
jeopardize the success of the offering by the Company. If the total amount of
securities, including Registrable Securities, requested by shareholders to be
included in such offering exceeds the amount of securities sold other than by
the Company that the underwriters determine in their sole discretion is
compatible with the success of the offering, then the Company shall be required
to include in the offering only that number of such securities, including
Registrable Securities, which the underwriters determine in their sole
discretion will not jeopardize the success of the offering (the securities so
included to be apportioned pro rata among the selling shareholders according to
the total amount of securities entitled to be included therein owned by each
selling shareholder or in such other proportions as shall mutually be agreed to
by such selling shareholders). For purposes of the preceding parenthetical
concerning apportionment, for any selling shareholder which is a holder of
Registrable Securities and which is a partnership or corporation, the partners,
retired partners and shareholders of such holder, or the estates and family
members of any such partners and retired partners and any trusts for the benefit
of any of the foregoing persons shall be deemed to be a single "selling
shareholder," and any pro-rata reduction with respect to such "selling
shareholder" shall be based upon the aggregate amount of shares carrying
registration rights owned by all entities and individuals included in such
"selling shareholder," as defined in this sentence.

                9.9 Delay of Registration. No Holder shall have any right to
obtain or seek an injunction restraining or otherwise delaying any such
registration as the result of any controversy that might arise with respect to
the interpretation or implementation of this Section 9.

                9.10 Indemnification. In the event any Registrable Securities
are included in a registration statement under this Section 9:

                        9.10.1 To the extent permitted by law, the Company will
indemnify and hold harmless each Holder, any underwriter (as defined in the
Securities Act) for such Holder and each person, if any, who controls such
Holder or underwriter within the meaning of the Securities Act or the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), against any losses,
claims, damages, or liabilities (joint or several) to which they may become
subject under the Securities Act, the Exchange Act or other federal or state
law, insofar as such losses, claims, damages, or liabilities (or actions in
respect thereof) arise out of or are based upon any of the following statements,
omissions or violations (collectively a "Violation"): (i) any untrue statement
or alleged untrue statement of a material fact contained in such registration
statement, including any preliminary prospectus or final prospectus contained
therein or any amendments or supplements thereto, (ii) the omission or alleged
omission to state therein a material fact required to be stated therein, or
necessary to make the statements therein not misleading, or (iii) any violation
or alleged violation by the Company of the Securities Act, the Exchange Act, any
state securities law or any rule or regulation promulgated under the Securities
Act, the Exchange Act or any state securities law; and the Company will pay to
each such Holder, underwriter or controlling person, as incurred, any legal or
other expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability, or action; provided, however,
that the indemnity agreement contained in this subsection 9.10.1 shall not apply
to amounts paid in settlement of any such loss, claim, damage, liability, or
action if such

                                      -11-
<PAGE>   13

settlement is effected without the consent of the Company (which consent shall
not be unreasonably withheld), nor shall the Company be liable to any Holder,
underwriter or controlling person for any such loss, claim, damage, liability,
or action to the extent that it arises out of or is based upon a Violation which
occurs in reliance upon and in conformity with written information furnished
expressly for use in connection with such registration by any such Holder,
underwriter or controlling person.

                        9.10.2 To the extent permitted by law, each selling
Holder will indemnify and hold harmless the Company, each of its directors, each
of its officers who has signed the registration statement, each person, if any,
who controls the Company within the meaning of the Securities Act, any
underwriter, any other Holder selling securities in such registration statement
and any controlling person of any such underwriter or other Holder, against any
losses, claims, damages, or liabilities (joint or several) to which any of the
foregoing persons may become subject, under the Securities Act, the Exchange Act
or other federal or state law, insofar as such losses, claims, damages, or
liabilities (or actions in respect thereto) arise out of or are based upon any
Violation, in each case to the extent (and only to the extent) that such
Violation occurs in reliance upon and in conformity with written information
furnished by such Holder expressly for use in connection with such registration;
and each such Holder will pay, as incurred, any legal or other expenses
reasonably incurred by any person intended to be indemnified pursuant to this
subsection 9.10.2, in connection with investigating or defending any such loss,
claim, damage, liability, or action; provided, however, that the indemnity
agreement contained in this subsection 9.10.2 shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Holder, which consent shall
not be unreasonably withheld; provided, that in no event shall any indemnity
under this subsection 9.10.2 exceed the net proceeds from the offering received
by such Holder, except in the case of willful fraud by such Holder.

                        9.10.3 Promptly after receipt by an indemnified party
under this Section 9.10 of notice of the commencement of any action (including
any governmental action), such indemnified party will, if a claim in respect
thereof is to be made against any indemnifying party under this Section 9.10,
deliver to the indemnifying party a written notice of the commencement thereof
and the indemnifying party shall have the right to participate in, and, to the
extent the indemnifying party so desires, jointly with any other indemnifying
party similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party
(together with all other indemnified parties which may be represented without
conflict by one counsel) shall have the right to retain one separate counsel,
with the reasonable fees and expenses to be paid by the indemnifying party, if
representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by such
counsel in such proceeding. The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action, if prejudicial to its ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this Section
9.10, but the omission so to deliver written notice to

                                      -12-
<PAGE>   14

the indemnifying party will not relieve it of any liability that it may have to
any indemnified party otherwise than under this Section 9.10.

                        9.10.4 If the indemnification provided for in this
Section 9.10 is held by a court of competent jurisdiction to be unavailable to
an indemnified party with respect to any loss, liability, claim, damage or
expense referred to therein, then the indemnifying party, in lieu of
indemnifying such indemnified party hereunder, shall contribute to the amount
paid or payable by such indemnified party as a result of such loss, liability,
claim, damage, or expense in such proportion as is appropriate to reflect the
relative fault of the indemnifying party on the one hand and of the indemnified
party on the other in connection with the statements or omissions that resulted
in such loss, liability, claim, damage or expense as well as any other relevant
equitable considerations; provided, that in no event shall any contribution by a
Holder under this Subsection 9.10.4 exceed the net proceeds from the offering
received by such Holder, except in the case of willful fraud by such Holder. The
relative fault of the indemnifying party and of the indemnified party shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission to state a material fact
relates to information supplied by the indemnifying party or by the indemnified
party and the parties' relative intent, knowledge, access to information, and
opportunity to correct or prevent such statement or omission.

                        9.10.5 Notwithstanding the foregoing, to the extent that
the provisions on indemnification and contribution contained in the underwriting
agreement entered into in connection with the underwritten public offering are
in conflict with the foregoing provisions, the provisions in the underwriting
agreement shall control.

                        9.10.6 The obligations of the Company and Holders under
this Section 9.10 shall survive the completion of any offering of Registrable
Securities in a registration statement under this Section 9, and otherwise.

                9.11 Assignment of Registration Rights. The rights to cause the
Company to register Registrable Securities pursuant to this Section 9 may be
assigned (but only with all related obligations) by a Holder to a transferee or
assignee of at least 200,000 shares of such securities, provided the Company is,
within a reasonable time after such transfer, furnished with written notice of
the name and address of such transferee or assignee and the securities with
respect to which such registration rights are being assigned; and provided,
further, that such assignment shall be effective only if immediately following
such transfer the further disposition of such securities by the transferee or
assignee is restricted under the Securities Act. For the purposes of determining
the number of shares of Registrable Securities held by a transferee or assignee,
the holdings of transferees and assignees of a partnership who are partners or
retired partners of such partnership (including spouses and ancestors, lineal
descendants and siblings of such partners or spouses who acquire Registrable
Securities by gift, will or intestate succession) shall be aggregated together
and with the partnership; provided that all assignees and transferees who would
not qualify individually for assignment of registration rights shall have a
single attorney-in-fact for the purpose of exercising any rights, receiving
notices or taking any action under Section 9.

                                      -13-
<PAGE>   15

                9.12 Termination of Registration Rights. No Holder shall be
entitled to exercise any right provided for in this Section 9 after the earlier
of (i) such time as Rule 144 or another similar exemption under the Securities
Act is available for the sale of all of such Holder's shares during a three
(3)-month period without registration, or (ii) the Company's sale of all or
substantially all of its assets or the acquisition of this Company by another
entity by means of merger or consolidation resulting in the exchange of the
outstanding shares of this Company for securities or consideration issued, or
caused to be issued, by the acquiring corporation or its subsidiary, unless the
stockholders of the Company hold at least 50% of the voting power of the
surviving corporation in such a transaction.

        10. Miscellaneous.

                10.1 Notices. All notices and other communications given or made
pursuant hereto shall be in writing and shall be deemed to have been duly given
or made if and when delivered personally or by overnight courier to the parties
at the following addresses or sent by electronic transmission, with confirmation
received, to the telecopy numbers specified below (or at such other address or
telecopy number for a party as shall be specified by like notice):

                (a) If to the Investor:

                      Knowledge Universe, Inc.
                      844 Moraga Drive
                      Los Angeles, CA 90049
                      Fax: (310) 440-3679
                      Attention: President

                With a copy to:

                      Maron & Sandler
                      844 Moraga Drive
                      Los Angeles, CA 90049
                      Fax: (310) 440-3690
                      Attention: Stanley E. Maron, Esq.

                (b) If to the Company:

                      Nextera Enterprises, Inc.
                      Telecopier No.: (781) 778-4400
                      Telephone No.: (781) 778-4500
                      Attention: President

                                      -14-
<PAGE>   16

                With a copy to:

                      Latham & Watkins
                      701 "B" Street, Suite 2100
                      San Diego, California  92101-8197
                      Telecopier No.: (619) 696-7419
                      Telephone No.:  (619) 236-1234
                      Attention: David A. Hahn, Esq.

                10.2 Successors and Assigns. This Agreement shall be binding
upon, and inure to the benefit of, the respective successors, assigns, heirs,
executors and administrators of the parties hereto and their respective
successors and assigns, and no other person shall have any right, benefit or
obligation under this Agreement as a third party beneficiary or otherwise.

                10.3 Governing Law. This Agreement shall be governed by and
construed under the laws of the State of Delaware, without regard to any
applicable conflict of laws.

                10.4 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.

                10.5 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.

                10.6 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 Investor.

                10.7 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.

                10.8 Arbitration. The parties agree that any dispute,
controversy or claim arising out of this Agreement or the performance, breach or
termination thereof shall be settled by final and binding arbitration in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association. The place of arbitration shall be a mutually agreed location in the
State of Delaware. The arbitration shall be conducted by a neutral arbitrator
selected by mutual agreement of the parties within fifteen (15) days after
notice by either party to the other requesting such arbitration. If the parties
fail to agree within fifteen (15) days on the selection of the arbitrator, an
arbitrator shall be promptly appointed by the American Arbitration Association.
Judgment upon the award rendered may be entered in any court having
jurisdiction. The arbitrator shall be entitled to award any appropriate remedy
including, but not limited to,

                                      -15-
<PAGE>   17

monetary damages, specific performance, and all other forms of legal and
equitable relief; provided, however, that the arbitration shall not be entitled
to award punitive damages and shall not reform, modify or materially change the
Agreement. The prevailing party shall be entitled to all costs of arbitration
including, but not limited to, reasonable attorneys' fees. The parties further
agree that they shall be entitled to discovery in the same manner as though the
dispute were within the jurisdiction of the Chancery Court of the State of
Delaware. Except as otherwise required by law, all information resulting from or
otherwise pertaining to any dispute shall be nonpublic and handled by the
Company, the Investor and their respective Agents in such a way as to prevent
the public disclosure of such information.

                10.9 Entire Agreement. This Agreement (together with the
Certificate) constitutes the entire agreement between the parties hereto
pertaining to the subject matter hereof, and any and all other written or oral
agreements existing between the parties hereto are expressly canceled.

                                      -16-
<PAGE>   18

        IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                            NEXTERA ENTERPRISES, INC.,
                                            a Delaware corporation

                                            By:    /s/ Michael P. Muldowney
                                                   -----------------------------
                                                   Michael P. Muldowney
                                                   Chief Financial Officer

                                            KNOWLEDGE UNIVERSE, INC.,
                                            a Delaware corporation

                                            By:    /s/ Stanley E. Maron
                                                   -----------------------------
                                                   Stanley E. Maron
                                                   Secretary

                                      -17-

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