Document:

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                                                                     EXHIBIT 4.3

                           CERTIFICATE OF DESIGNATION

                                       OF

                  SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

                         (PURSUANT TO SECTION 151 OF THE
                        DELAWARE GENERAL CORPORATION LAW)

        KOSAN BIOSCIENCES INCORPORATED, a corporation organized and existing
under the General Corporation Law of the State of Delaware (hereinafter called
the "Corporation" or the "Company"), hereby certifies that the following
resolution was adopted by the Board of Directors of the Corporation as required
by Section 151 of the General Corporation Law at a meeting duly called and held
on October 5, 2001:

                    RESOLVED, that pursuant to the authority granted to and
                vested in the Board of Directors of the Company in accordance
                with the provisions of its Amended and Restated Certificate of
                Incorporation, the Board of Directors hereby creates a series of
                Preferred Stock, par value $.001 per share, of the Company and
                hereby states the designation and number of shares, and fixes
                the relative designations and the powers, preferences and
                rights, and the qualifications, limitations and restrictions
                thereof (in addition to the provisions set forth in the
                Certificate of Incorporation of the Company, which are
                applicable to the Preferred Stock of all classes and series), as
                follows:

Series A Junior Participating Preferred Stock:

        SECTION 1. DESIGNATION AND AMOUNT. One Million (1,000,000) shares of
Preferred Stock, $.001 par value, are designated "Series A Junior Participating
Preferred Stock" with the designations and the powers, preferences and rights,
and the qualifications, limitations and restrictions specified herein (the
"Junior Preferred Stock"). Such number of shares may be increased or decreased
by resolution of the Board of Directors; provided, that no decrease shall reduce
the number of shares of Junior Preferred Stock to a number less than the number
of shares then outstanding plus the number of shares reserved for issuance upon
the exercise of outstanding options, rights or warrants or upon the conversion
of any outstanding securities issued by the Company convertible into Junior
Preferred Stock.

        SECTION 2. DIVIDENDS AND DISTRIBUTIONS.

               (A) Subject to the rights of the holders of any shares of any
series of Preferred Stock (or any similar stock) ranking prior and superior to
the Junior Preferred Stock with respect

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to dividends, the holders of shares of Junior Preferred Stock, in preference to
the holders of Common Stock, par value $.001 per share (the "Common Stock"), of
the Company, and of any other junior stock, shall be entitled to receive, when,
as and if declared by the Board of Directors out of funds legally available for
the purpose, quarterly dividends payable in cash on the first day of April,
July, October and January in each year (each such date being referred to herein
as a "Quarterly Dividend Payment Date"), commencing on the first Quarterly
Dividend Payment Date after the first issuance of a share or fraction of a share
of Junior Preferred Stock, in an amount per share (rounded to the nearest cent)
equal to the greater of (a) $l.00 or (b) subject to the provision for adjustment
hereinafter set forth, 100 times the aggregate per share amount of all cash
dividends, and 100 times the aggregate per share amount (payable in kind) of all
non-cash dividends or other distributions, other than a dividend payable in
shares of Common Stock or a subdivision of the outstanding shares of Common
Stock (by reclassification or otherwise), declared on the Common Stock since the
immediately preceding Quarterly Dividend Payment Date or, with respect to the
first Quarterly Dividend Payment Date, since the first issuance of any share or
fraction of a share of Junior Preferred Stock. In the event the Company shall at
any time declare or pay any dividend on the Common Stock payable in shares of
Common Stock, or effect a subdivision or combination or consolidation of the
outstanding shares of Common Stock (by reclassification or otherwise than by
payment of a dividend in shares of Common Stock) into a greater or lesser number
of shares of Common Stock, then in each such case the amount to which holders of
shares of Junior Preferred Stock were entitled immediately prior to such event
under clause (b) of the preceding sentence shall be adjusted by multiplying such
amount by a fraction, the numerator of which is the number of shares of Common
Stock outstanding immediately after such event and the denominator of which is
the number of shares of Common Stock that were outstanding immediately prior to
such event.

               (B) The Company shall declare a dividend or distribution on the
Junior Preferred Stock as provided in paragraph (A) of this Section immediately
after it declares a dividend or distribution on the Common Stock (other than a
dividend payable in shares of Common Stock); provided, that in the event no
dividend or distribution shall have been declared on the Common Stock during the
period between any Quarterly Dividend Payment Date and the next subsequent
Quarterly Dividend Payment Date, a dividend of $1.00 per share on the Junior
Preferred Stock shall nevertheless be payable on such subsequent Quarterly
Dividend Payment Date.

               (C) Dividends shall begin to accrue and be cumulative on
outstanding shares of Junior Preferred Stock from the Quarterly Dividend Payment
Date next preceding the date of issue of such shares, unless the date of issue
of such shares is prior to the record date for the first Quarterly Dividend
Payment Date, in which case dividends on such shares shall begin to accrue from
the date of issue of such shares, or unless the date of issue is a Quarterly
Dividend Payment Date or is a date after the record date for the determination
of holders of shares of Junior Preferred Stock entitled to receive a quarterly
dividend and before such Quarterly Dividend Payment Date, in either of which
events such dividends shall begin to accrue and be cumulative from such
Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear
interest. Dividends paid on the shares of Junior Preferred Stock in an amount
less than the total amount of such dividends at the time accrued and payable on
such shares shall be allocated pro rata on a share-by-share basis among all such
shares at the time outstanding. The Board of Directors may fix a record date for
the determination of holders of shares of Junior Preferred

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Stock entitled to receive payment of a dividend or distribution declared
thereon, which record date shall be not more than 60 days prior to the date
fixed for the payment thereof.

        SECTION 3. VOTING RIGHTS. The holders of shares of Junior Preferred
Stock shall have the following voting rights:

               (A) Subject to the provision for adjustment hereinafter set
forth, each share of Junior Preferred Stock shall entitle the holder thereof to
100 votes on all matters submitted to a vote of the stockholders of the Company.
In the event the Company shall at any time declare or pay any dividend on the
Common Stock payable in shares of Common Stock, or effect a subdivision or
combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then in each
such case the number of votes per share to which holders of shares of Junior
Preferred Stock were entitled immediately prior to such event shall be adjusted
by multiplying such number by a fraction, the numerator of which is the number
of shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

               (B) Except as otherwise provided herein, in any other Certificate
of Designation creating a series of Preferred Stock or any similar stock, or by
law, the holders of shares of Junior Preferred Stock and the holders of shares
of Common Stock and any other capital stock of the Company having general voting
rights shall vote together as one class on all matters submitted to a vote of
stockholders of the Company.

               (C) Except as set forth herein, or as otherwise provided by law,
holders of Junior Preferred Stock shall have no special voting rights and their
consent shall not be required (except to the extent they are entitled to vote
with holders of Common Stock as set forth herein) for taking any corporate
action.

        SECTION 4. CERTAIN RESTRICTIONS.

               (A) Whenever quarterly dividends or other dividends or
distributions payable on the Junior Preferred Stock as provided in Section 2 are
in arrears, thereafter and until all accrued and unpaid dividends and
distributions, whether or not declared, on shares of Junior Preferred Stock
outstanding shall have been paid in full, the Company shall not:

                      (i) declare or pay dividends, or make any other
distributions, on any shares of stock ranking junior (either as to dividends or
upon liquidation, dissolution or winding up) to the Junior Preferred Stock;

                      (ii) declare or pay dividends, or make any other
distributions, on any shares of stock ranking on a parity (either as to
dividends or upon liquidation, dissolution or winding up) with the Junior
Preferred Stock, except dividends paid ratably on the Junior Preferred Stock and
all such parity stock on which dividends are payable or in arrears in proportion
to the total amounts to which the holders of all such shares are then entitled;

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                      (iii) redeem or purchase or otherwise acquire for
consideration shares of any stock ranking junior (either as to dividends or upon
liquidation, dissolution or winding up) to the Junior Preferred Stock, provided
that the Company may at any time redeem, purchase or otherwise acquire shares of
any such junior stock in exchange for shares of any stock of the Company ranking
junior (either as to dividends or upon dissolution, liquidation or winding up)
to the Junior Preferred Stock; or

                      (iv) redeem or purchase or otherwise acquire for
consideration any shares of Junior Preferred Stock, or any shares of stock
ranking on a parity (either as to dividends or upon liquidation, dissolution or
winding up) with the Junior Preferred Stock, except in accordance with a
purchase offer made in writing or by publication (as determined by the Board of
Directors) to all holders of such shares upon such terms as the Board of
Directors, after consideration of the respective annual dividend rates and other
relative rights and preferences of the respective series and classes, shall
determine in good faith will result in fair and equitable treatment among the
respective series or classes.

               (B) The Company shall not permit any subsidiary of the Company to
purchase or otherwise acquire for consideration any shares of stock of the
Company unless the Company could, under paragraph (A) of this Section 4,
purchase or otherwise acquire such shares at such time and in such manner.

        SECTION 5. REACQUIRED SHARES. Any shares of Junior Preferred Stock
purchased or otherwise acquired by the Company in any manner whatsoever shall be
retired and cancelled promptly after the acquisition thereof. All such shares
shall upon their cancellation become authorized but unissued shares of Preferred
Stock and may be reissued as part of a new series of Preferred Stock subject to
the conditions and restrictions on issuance set forth herein, in the Amended and
Restated Certificate of Incorporation, or in any other Certificate of
Designation creating a series of Preferred Stock or any similar stock or as
otherwise required by law.

        SECTION 6. LIQUIDATION, DISSOLUTION OR WINDING UP. Upon any liquidation,
dissolution or winding up of the Company, no distribution shall be made (1) to
the holders of shares of stock ranking junior (either as to dividends or upon
liquidation, dissolution or winding up) to the Junior Preferred Stock unless,
prior thereto, the holders of shares of Junior Preferred Stock shall have
received $100 per share, plus an amount equal to accrued and unpaid dividends
and distributions thereon, whether or not declared, to the date of such payment,
provided that the holders of shares of Junior Preferred Stock shall be entitled
to receive an aggregate amount per share, subject to the provision for
adjustment hereinafter set forth, equal to 100 times the aggregate amount to be
distributed per share to holders of shares of Common Stock, or (2) to the
holders of shares of stock ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding up) with the Junior Preferred Stock, except
distributions made ratably on the Junior Preferred Stock and all such parity
stock in proportion to the total amounts to which the holders of all such shares
are entitled upon such liquidation, dissolution or winding up. In the event the
Company shall at any time declare or pay any dividend on the Common Stock
payable in shares of Common Stock, or effect a subdivision or combination or
consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock) into a
greater or lesser number of shares of Common Stock, then in each such case the
aggregate amount to which holders of shares of Junior

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Preferred Stock were entitled immediately prior to such event under the proviso
in clause (1) of the preceding sentence shall be adjusted by multiplying such
amount by a fraction the numerator of which is the number of shares of Common
Stock outstanding immediately after such event and the denominator of which is
the number of shares of Common Stock that were outstanding immediately prior to
such event.

        SECTION 7. CONSOLIDATION, MERGER, ETC. In case the Company shall enter
into any consolidation, merger, combination or other transaction in which the
shares of Common Stock are exchanged for or changed into other stock or
securities, cash and/or any other property, then in any such case each share of
Junior Preferred Stock shall at the same time be similarly exchanged or changed
into an amount per share, subject to the provision for adjustment hereinafter
set forth, equal to 100 times the aggregate amount of stock, securities, cash
and/or any other property (payable in kind), as the case may be, into which or
for which each share of Common Stock is changed or exchanged. In the event the
Company shall at any time declare or pay any dividend on the Common Stock
payable in shares of Common Stock, or effect a subdivision or combination or
consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock) into a
greater or lesser number of shares of Common Stock, then in each such case the
amount set forth in the preceding sentence with respect to the exchange or
change of shares of Junior Preferred Stock shall be adjusted by multiplying such
amount by a fraction, the numerator of which is the number of shares of Common
Stock outstanding immediately after such event and the denominator of which is
the number of shares of Common Stock that were outstanding immediately prior to
such event.

        SECTION 8. NO REDEMPTION. The shares of Junior Preferred Stock shall not
be redeemable.

        SECTION 9. RANK. The Junior Preferred Stock shall rank, with respect to
the payment of dividends and the distribution of assets, junior to all series of
any other class of the Company's Preferred Stock.

        SECTION 10. AMENDMENT. The Amended and Restated Certificate of
Incorporation of the Company shall not be amended in any manner which would
materially alter or change the powers, preferences or special rights of the
Junior Preferred Stock so as to affect them adversely without the affirmative
vote of the holders of at least two-thirds of the outstanding shares of Junior
Preferred Stock, voting together as a single class.

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        IN WITNESS WHEREOF, the undersigned have executed this certificate as of
October 9, 2001.

                               By: /s/ Daniel V. Santi, M.D., Ph.D.
                               -------------------------------------------------
                               DANIEL V. SANTI, M.D., PH.D.
                               CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER

                               By: /s/ Susan M. Kanaya
                               -------------------------------------------------
                               SUSAN M. KANAYA
                               SECRETARY

                                       6<PAGE>
EXHIBIT 10.1

LOAN PURCHASE AGREEMENT

THIS LOAN PURCHASE AGREEMENT (this "Agreement") is made and entered into as of
August 22, 2001, by and between DIGITAL CREATIVE DEVELOPMENT CORPORATION
("Buyer"), and UNION BANK OF CALIFORNIA, N. A. ("Seller"), with reference to the
following:

      A.    Seller has heretofore made that certain $3,601,000.00 loan (the
            "Loan"), to International Microcomputer Software, Inc. ("Borrower")
            and Arttoday.com ("Guarantor"), which Loan is evidenced by that
            certain Second Amended and Restated Secured Non-Revolving Reducing
            Promissory Note ("Note") dated April 23, 1999, made payable by
            Borrower to the order of Seller in the original principal amount of
            $7,200,000.00, and is secured by the following: (i) that certain
            Security Agreement dated as of May 1, 1998 ("California Security
            Agreement") pursuant to which Borrower granted to Bank a security
            interest in the personal property described therein ("California
            Collateral") and it was perfected by the filing of a UCC-1 Financing
            Statement with the California Secretary of State on May 15, 1998, as
            file no. 9813561043 ("California UCC-1"); (ii) that certain
            Collateral Assignment, Patent Mortgage and Security Agreement dated
            as of May 1, 1998 ("Patent Security Agreement") pursuant to which
            Borrower granted to Bank a security interest in the intellectual
            property described therein ("Patent Collateral") and it was
            perfected by a filing with the United States- Department of Commerce
            Patent and Trademark Office on July 24, 1998 as file no. 100773879
            and on March 16, 1999 as file no. 100985547 (each a "Patent Filing"
            collectively the "Patent Filings") and by the filing of a UCC-1
            Financing Statement with the California Secretary of State on May
            15, 1998, as file no. 9813561037 ("Patent UCC-1); and (iii) that
            certain Pledge Agreement dated as of February 21, 2000 ("Pledge
            Agreement") pursuant to which Borrower granted to Bank a security
            interest in the common stock of Guarantor described therein ("Stock
            Collateral"). The documents and instruments pertaining to the Loan
            are further described in the Index of Loan Documents attached hereto
            as Exhibit A. All of the documents and instruments evidencing,
            securing or pertaining to the Loan, including without limitation
            those referred to in this paragraph, are hereinafter referred to
            collectively as the "Loan Documents." All types of collateral
            referred to in this paragraph are hereinafter referred to
            collectively as "Collateral".

      B.    The Loan matured September 30, 1999, and since then has been in
            default.

      C.    Buyer desires to purchase the Loan and the Loan Documents from
            Seller, and Seller desires to sell the Loan and the Loan Documents
            to Buyer, upon the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the premises and the mutual promises and
agreements hereinafter contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Seller and Buyer
hereby agree as follows:

1.    PURCHASE AND SALE.

      Subject to the terms and conditions of this Agreement, Buyer shall
      purchase from Seller, and Seller shall sell to Buyer, all of Seller's
      right, title and interest in and to the Loan and the Loan Documents,
      without recourse and without representation or warranty of any kind except
      as expressly set forth in this Agreement.

2.    PURCHASE PRICE

      (a)   The purchase price (the "Purchase Price") payable by Buyer to Seller
            hereunder for the Loan and the Loan Documents shall be Two Million
            Five Hundred Thousand Dollars ($2,500,000.00).

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      (b)   The Purchase Price shall be paid by Buyer through a wire transfer to
            Seller, in accordance with the following wire transfer instructions:

<TABLE>
<S>                                                 <C>
            Union Bank of California, N.A.          Monterey Park, California
            ABA No.:                                122-000-496
            Wire Account No.:                       070-196431
            Wire Account Name:                      Wire Transfer Clearing Account

            Attention:                              192 Commercial Note Center
            Fax No.:                                (213) 720-2555 or -2251
            Telex No.:                              188612, UNIONBK UT

            Reference:                              International Microcomputer Software, Inc.
            Obligor #381-443-705-2

            Contact:                                Christiana Creekpaum, VP
            Special Assets Department, 1-001-8
            415-765-2252
</TABLE>

      (c)   Upon Seller's receipt of the Purchase Price, Buyer shall become the
            owner of and entitled to receive from and after the Closing all
            payments and recoveries in respect of the Loan. In no event shall
            Buyer have any right or claim in or to any loan fee, commitment fee,
            payment or recovery received by Seller prior to the Closing in
            respect of the Loan.

3.    CLOSING

      (a)   The consummation of the purchase and sale of the Loan and the Loan
            Documents contemplated hereby (the "Closing") shall occur on a date
            mutually approved by Seller and Buyer, but no later than August 31,
            2001. If the Closing has not occurred by the close of business on
            such date, then this Agreement shall, at the written election of
            either Seller or Buyer, be terminated and Seller and Buyer shall
            have no liability whatsoever to each other relating to the
            transactions contemplated hereby, whether arising under this
            Agreement or otherwise; provided, however, that (i) in the case
            where the Closing has not occurred by the close of business on such
            date solely because of the failure of one party to use reasonable
            efforts to close, the other party alone shall have the right, at its
            option, to either terminate this Agreement or specify a reasonable
            extension of the Closing; and (ii) in the event that this Agreement
            is terminated for any reason, the terms and provisions of Sections
            10 and 11 of this Agreement shall survive.

      (b)   Seller shall bear no expense in connection with this Agreement or
            the transactions contemplated hereby.

4.    SERVICING.

      Upon the Closing of the sale of the Loan, Buyer shall assume complete
      responsibility for the servicing and administration of the Loan,
      including, but not limited to, the collection of all payments thereunder,
      and Seller shall have no further servicing or administrative
      responsibilities with respect to the Loan.

5.    SELLER'S CLOSING DOCUMENTS.

      Except as otherwise provided in this Section, at or promptly following the
      Closing, Seller shall deliver the following documents and items
      (collectively, the "Closing Documents"), and Buyer agrees to execute and
      promptly deliver to Seller a receipt for such documents and items upon
      Buyer's receipt thereof:

      (a)   The executed original of the Note.

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      (b)   An Endorsement to Promissory Note in the form of Exhibit B attached
            hereto, duly executed by Seller, with respect to the Note, which
            shall be attached to the Note.

      (c)   An Assignment of Loan Documents in the form of Exhibit C attached
            hereto, duly executed by Seller, assigning and transferring to Buyer
            all of Seller's rights and interests in and to the Loan Documents.

      (d)   The executed originals of all of the Loan Documents (or, if
            unavailable, copies of such Loan Documents certified by Seller to be
            true, correct and complete copies of the originals).

      (e)   A Uniform Commercial Code Assignment Statement duly executed by
            Seller, for each Uniform Commercial Code Financing Statement naming
            Seller as secured party that was recorded or filed in connection
            with the Loan (collectively, the "UCC Assignments").

      (f)   Written notice of the assignment of the Loan, in form and substance
            of that attached hereto as Exhibit D duly executed by Seller,
            instructing Borrower to remit all payments to Buyer or its
            collection agent.

      (g)   The original stock certificate(s) evidencing the Stock Collateral
            and accompanying stock power(s).

      (h)   Written assignment to Buyer of the Patent Filing, in form suitable
            for filing in the United States-Department of Commerce Patent and
            Trademark Office, duly executed by Seller.

6.    REPRESENTATIONS AND WARRANTIES OF SELLER.

      Seller hereby represents and warrants to Buyer, which representations and
      warranties shall be deemed restated as of the Closing, that:

      (a)   Seller is a national banking association, duly organized, validly
            existing and in good standing under the laws of the United States.

      (b)   Seller has, and at all relevant times has had, the full power and
            authority to execute, deliver and perform, and to enter into and
            consummate all transactions contemplated by this Agreement. Seller
            has duly authorized the execution, delivery and performance of this
            Agreement, has duly executed and delivered this Agreement and this
            Agreement constitutes a legal, valid and binding obligation of
            Seller, enforceable against it in accordance with its terms.

      (c)   The execution and delivery of this Agreement by Seller, and the
            performance and compliance with the terms of this Agreement by
            Seller, will not violate Seller's charter or bylaws 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 breach of, any
            material agreement or other instrument to which it is a party or
            which is applicable to it or any of its assets.

      (d)   Seller is the current legal and beneficial owner and holder of the
            Loan and the Loan Documents.

      (e)   As of August 21, 2001, the outstanding principal balance of the Note
            was $3,601,000.00, the amount of accrued but unpaid interest on the
            Note was $26,480.69 and interest has been paid through July 31,
            2001.

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      (f)   To the best of Seller's knowledge, there is no litigation pending
            against Seller which, if determined adversely to Seller, would
            materially adversely affect Seller's sale of the Loan or the
            execution, delivery or enforceability of this Agreement.

      (g)   Seller shall not, during the term of this Agreement, enter into an
            agreement with any third party with respect to its purchase of the
            Loan.

      It is understood and agreed that the representations and warranties set
      forth above shall survive the assignment of the Loan to Buyer.

7.    REPRESENTATIONS AND WARRANTIES OF BUYER.

      Buyer hereby represents and warrants to Seller, which representations and
      warranties shall be deemed restated as of the Closing, that:

      (a)   Buyer is a corporation duly organized, validly existing and in good
            standing under the laws of the State of Utah.

      (b)   Buyer has, and at all relevant times has had, the full power and
            authority to execute, deliver and perform, and to enter into and
            consummate all transactions contemplated by this Agreement. Buyer
            has duly authorized the execution, delivery and performance of this
            Agreement, has duly executed and delivered this Agreement and this
            Agreement constitutes a legal, valid and binding obligation of
            Buyer, enforceable against it in accordance with its terms.

      (c)   The execution and delivery of this Agreement by Buyer, and the
            performance and compliance with the terms of this Agreement by
            Buyer, will not violate Buyer's charter or bylaws 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 breach of, any
            material agreement or other instrument to which it is a party or
            which is applicable to it or any of its assets.

      (d)   Buyer is not in violation of, and its execution and delivery of this
            Agreement and its performance and compliance with the terms of this
            Agreement will not constitute a violation of, any law, any order or
            decree of any court, or any order, regulation or demand of any
            federal, state or local governmental or regulatory authority.

      (e)   To the best of Buyer's knowledge, there is no litigation pending or
            threatened against Buyer, which if determined adversely to Buyer,
            would materially adversely affect Buyer's purchase of the Loan or
            the execution, delivery or enforceability of this Agreement.

      (f)   The purchase of the Loan is a legal investment for Buyer under
            applicable laws.

      (g)   Buyer (i) is a sophisticated entity with respect to the purchase of
            the Loan and the Loan Documents, (ii) is able to bear the economic
            risk associated with the purchase of the Loan and the Loan
            Documents, (iii) has adequate information concerning Borrower's and
            Guarantor's business and financial condition to make an informed
            decision regarding the purchase of the Loan and the Loan Documents,
            (iv) has such knowledge and experience, and has made investments of
            a similar nature, so as to be aware of the risks and uncertainties
            inherent in purchases of the type contemplated in this Agreement,
            and (v) has independently and without reliance upon Seller, and
            based on such information as Buyer has deemed appropriate, made its
            own analysis and decision to enter into this Agreement, except that
            Buyer has relied upon Seller's express representations, warranties,
            covenants, and indemnities in this Agreement. Buyer acknowledges
            that Seller has not given Buyer

                                       86
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            any investment advice, credit information, or opinion on whether the
            purchase of the Loan or the Loan Documents is prudent.

      The foregoing representations and warranties of Buyer shall survive the
      execution of this Agreement and the Closing.

8.    CONDITIONS PRECEDENT TO CLOSING; SELLER'S COVENANT.

      The following shall be conditions precedent to Buyer's and Seller's
      respective duties and obligations under this Agreement, unless Buyer or
      Seller (whichever is the beneficiary of the condition in question) waives
      the satisfaction thereof in writing:

      (a)   Seller and Buyer shall each have performed and discharged all of
            their respective obligations under this Agreement, whether set forth
            in this Section or elsewhere in this Agreement.

      (b)   Seller and Buyer shall each have delivered to the other party, all
            payments, documents and instruments required of such party by the
            terms of this Agreement at the times and in the manner provided
            hereunder, including without limitation Buyer's payment to Seller of
            the Purchase Price in accordance with Section 2 hereof.

      (c)   Seller and Buyer shall each have done, executed, acknowledged and
            delivered all such further acts, instruments and assurances and
            shall have taken all such further actions as shall be reasonably
            necessary or desirable to consummate and effect the transactions
            contemplated by this Agreement.

      (d)   The representations and warranties of Buyer and Seller contained in
            Sections 6 and 7 hereof shall be true and correct as of the Closing.

      (e)   Borrower and Guarantor shall have executed and delivered to Seller a
            general release of claims in the form of Exhibit E, whereunder
            Borrower and Guarantor release any and all claims against Seller.

      (f)   Borrower shall have paid to Seller in immediately available funds
            (i) Twenty One Thousand Dollars ($21,000.00) for application to the
            outstanding principal of the Loan and (ii) all interest accrued on
            the Loan through and including the Closing.

      The conditions described above are exclusively conditions precedent to the
      Closing. Buyer and Seller agree to use reasonable efforts to satisfy such
      conditions, but neither Seller nor Buyer shall have any liability
      hereunder whatsoever if the subject transaction is not consummated solely
      because of the failure of any such condition to be satisfied
      notwithstanding the use of such reasonable efforts.

      During the period commencing on the date on which this Agreement is
      executed by both Seller and Buyer and ending on the Closing or sooner
      termination of this Agreement, Seller shall not enter into any
      modification, amendment, supplement, consent, approval or waiver with
      respect to the Loan or any of the Loan Documents (which shall be referred
      to herein as a "Changed Circumstance") without Buyer's prior written
      consent, except as required by law, by the terms of the Loan Documents or
      pursuant to the terms of previously negotiated settlements or similar
      contracts entered into or pending as of the date of this Agreement and
      disclosed to Buyer prior to the date of this Agreement.

9.    MISCELLANEOUS

      (a)   All written notices or demands of any kind that either party hereto
            may be required or may desire to serve on the other party hereto in
            connection with this Agreement shall be served (as an alternative

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<PAGE>
            to personal service) by registered or certified mail. Any such
            notice or demand so to be served by registered or certified mail
            shall be deposited in the United States Mail with postage thereon
            fully prepaid and, if the party so to be served be Seller, addressed
            to Seller as follows:

                Union Bank of California, N. A.
                Special Assets Department
                400 California Street, 8th Floor
                San Francisco, California 94104
                Attention:  Christiana Creekpaum, VP

                and if the party so to be served be Buyer, addressed to Buyer
                as follows:

                Digital Creative Development Corporation
                67 Irving Place
                New York, New York 10003
                Attention: Martin R. Wade III

            Service of any such notice or demand so made by mail shall be deemed
            complete on the date of actual delivery as shown by the addressee's
            registry or certification receipt or at the expiration of the third
            (3rd) business day after the date of mailing, whichever is earlier
            in time. Any party hereto may from time to time, by notice in
            writing served upon the other party hereto as aforesaid, designate a
            different mailing address to which or a different person to whose
            attention all such notices or demands are thereafter to be
            addressed.

      (b)   No delay or omission by either party hereto in exercising any right
            or power arising from any default by the other party hereto shall be
            construed as a waiver of such default or as an acquiescence therein,
            nor shall any single or partial exercise thereof preclude any
            further exercise thereof or the exercise of any other right or power
            arising from any default by the other party hereto. No waiver of any
            breach of any of the covenants or conditions contained in this
            Agreement shall be construed to be a waiver of or an acquiescence in
            or a consent to any previous or subsequent breach of the same or of
            any other condition or covenant.

      (c)   This Agreement is made for the sole benefit of Seller and Buyer and
            their respective successors and permitted assigns, and no other
            person or persons shall have any rights or remedies under or by
            reason of this Agreement or any right to the exercise of any right
            or power of either party hereto or arising from any default by
            either party hereto.

      (d)   Seller may accept deposits from, lend money to, act as trustee under
            indentures or in general engage in any kind of business with
            Borrower, any guarantor or their subsidiaries, owners, partners or
            affiliates, if any (collectively, "Borrower's Affiliates"), or any
            person who may do business with or own interests in any of them.

      (e)   After Closing, Buyer hereby agrees to allow Seller reasonable access
            to the Loan Documents, upon reasonable prior notice to Buyer. Buyer
            further agrees to allow Seller, at its expense, to inspect and make
            abstracts from or copies of any of the Loan Documents, upon
            reasonable terms and conditions and upon reasonable prior notice to
            Buyer. Before destruction or disposition of any of the Loan
            Documents, Buyer shall attempt to give reasonable notice to Seller
            and allow Seller, at its expense, to recover the same from Buyer.

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<PAGE>
      (f)   In the event any legal action is undertaken in order to enforce or
            interpret any provision of this Agreement, the prevailing party in
            such legal action, as determined by the court, shall be entitled to
            receive from the other party the prevailing party's reasonable
            attorneys' fees and court costs.

      (g)   Time is hereby declared to be of the essence of this Agreement and
            of every part hereof. When the context and construction so require,
            all words used in the singular herein shall be deemed to have been
            used in the plural and the masculine shall include the feminine and
            the neuter and vice versa.

      (h)   Prior to Closing, this Agreement shall not be assigned by Buyer
            without the written consent of Seller, which consent may be withheld
            in Seller's sole discretion.

      (i)   This Agreement constitutes the entire understanding between the
            parties hereto with respect to the subject matter hereof,
            superseding all prior written or oral understandings, and may not be
            terminated, modified or amended in any way except by a written
            agreement signed by each of the parties hereto.

      (j)   This Agreement may be executed in two (2) or more counterparts,
            which may be delivered by facsimile transmission, each of which
            shall be deemed an original but all of which together shall
            constitute but one and the same document.

      (k)   Except as otherwise expressly provided in this Agreement, whether or
            not the transactions contemplated by this Agreement are consummated,
            Buyer shall pay all of its Closing and due diligence expenses and
            its expenses in negotiating and carrying out its obligations under
            this Agreement, including the costs of its legal counsel and all of
            the expenses of Buyer relating to this Agreement.

      (l)   Buyer and Seller hereby acknowledge, confirm and agree that Buyer
            shall have no claims and Seller shall have no liability whatsoever
            as a result of or otherwise in connection with any claim that may
            arise by reason of the incapacity, lack of authority, death or
            disability of Borrower or any other person or entity or the failure
            of Seller to file or enforce any claim against Borrower or any other
            person or entity, any claim based upon an election of remedies by
            Seller, any claim based upon a duty, if any, on the part of Seller
            to disclose to Buyer any facts that Seller may now or hereafter know
            about Borrower or any other person or entity, or any notice of
            default, notice of sale or bankruptcy of Borrower under the Loan.

      (m)   BUYER AND SELLER HEREBY ACKNOWLEDGE THAT THIS AGREEMENT HAS BEEN
            NEGOTIATED AND EXECUTED IN THE STATE OF CALIFORNIA. BUYER AND SELLER
            EXPRESSLY AGREE THAT THIS AGREEMENT SHALL BE GOVERNED BY,
            INTERPRETED UNDER AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE
            LAWS OF THE STATE OF CALIFORNIA (WITHOUT GIVING EFFECT TO
            CALIFORNIA'S PRINCIPLES OF CONFLICTS OF LAWS). BUYER AND SELLER EACH
            IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR
            FEDERAL COURT SITTING IN THE COUNTY OF SAN FRANCISCO, STATE OF
            CALIFORNIA, OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR
            RELATING TO THIS AGREEMENT. SELLER AND BUYER EACH EXPRESSLY AND
            UNCONDITIONALLY WAIVE IN CONNECTION WITH ANY SUIT, ACTION OR
            PROCEEDING BROUGHT UNDER OR ARISING OUT OF THIS AGREEMENT ANY AND
            EVERY RIGHT EACH MAY HAVE TO A TRIAL BY JURY.

10.   BROKERS.

                                       89
<PAGE>
      Buyer and Seller each warrant to the other that no fees or commissions are
      due or owing to any finders or brokers as a result of the respective
      activities of each party in connection with this transaction. In the event
      of any claim for brokers' or finders' fees or commissions in connection
      with the negotiation, execution or consummation of this Agreement or the
      purchase and sale of the Loan, then Buyer shall indemnify, save harmless
      and defend Seller from and against any such claim based upon the alleged
      statement, representation or agreement by Buyer, and Seller shall
      indemnify, save harmless and defend Buyer from and against any such claim
      based upon any alleged statement, representation or agreement by Seller.
      The indemnity provided for herein shall survive the Closing or the
      termination of this Agreement for any reason.

11.   INDEMNIFICATION BY BUYER.

      Buyer hereby indemnifies and agrees to defend and hold harmless Seller and
      each of its affiliates, agents, employees, successors and assigns from and
      against any and all losses, liabilities, obligations, judgments,
      settlements, damages, costs and expenses, including, without limitation,
      interest, penalties and reasonable attorneys' fees, court costs and other
      reasonable expenses of litigation and arbitration, suffered by any of such
      parties and arising out of or due to:

      (a)   following the Closing, any act or omission of Buyer in its capacity
            as lender under the Loan Documents, provided that forgiveness of the
            Loan in whole or part by Buyer following Closing in and of itself
            shall not give rise to any liability of Buyer to Bank under this
            Section; and

      (b)   any material breach by Buyer of its representations, warranties,
            covenants or agreements set forth in this Agreement.

      Any legal counsel hired by Buyer in connection with the indemnification of
      Seller pursuant to this Section shall be subject to approval by Seller.
      The foregoing indemnity shall survive Closing.

IN WITNESS WHEREOF, Buyer and Seller have executed this Agreement as of the day
and year first above written.

"SELLER"                                "BUYER"

UNION BANK OF CALIFORNIA, N. A.         DIGITAL CREATIVE DEVELOPMENT CORPORATION

By:    /s/ CHRISTIANA CREEKPAUM         By:    /s/ MARTIN WADE III
       -----------------------------           ---------------------------------
Title: Vice President                   Title: President and CEO
       -----------------------------           ---------------------------------

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<PAGE>
SCHEDULE OF EXHIBITS

A.    Index of Loan Documents

B.    Endorsement to Promissory Note to be executed by Seller

C.    Assignment of Loan Documents to be executed by Seller

D.    Notice to Borrower of Assignment of Claims and Supporting Documentation

E.    Borrower's Release

                                       91
<PAGE>
EXHIBIT A

EXHIBIT B

ENDORSEMENT TO PROMISSORY NOTE

This Endorsement applies to that certain Second Amended and Restated Secured
Non-Revolving Reducing Promissory Note executed by International Microcomputer
Software, Inc. to the order of UNION BANK OF CALIFORNIA, N. A. dated April 23,
1999 in the original amount of Seven Million Two Hundred Thousand and No/100
Dollars ($7,200,000.00), as amended.

PAY TO THE ORDER OF Digital Creative Development Corporation, without recourse
and without representation or warranty of any kind except as expressly set forth
in that certain Loan Purchase Agreement dated as of August 22, 2001, by and
between the undersigned and Digital Creative Development Corporation.

Dated as of August ___, 2001.

UNION BANK OF CALIFORNIA, N. A.

By: /s/ CHRISTIANA CREEKPAUM
    -----------------------------
    Christiana Creekpaum
    Vice President

EXHIBIT C

ASSIGNMENT OF LOAN DOCUMENTS

FOR VALUE RECEIVED the undersigned, UNION BANK OF CALIFORNIA, N. A.
("Assignor"), hereby assigns and transfers to Digital Creative Development
Corporation ("Assignee"), all of Assignor's right, title and interest in, to and
under any and all document and instrument executed in connection with, or
related in any manner whatsoever to, the loan evidenced by (i) that certain
Second Amended and Restated Secured Non-Revolving Reducing Promissory Note dated
April 23, 1999; and (ii) all those certain loan documents and instruments
expressly described on Exhibit A attached hereto and hereby made a part hereof.
This Assignment shall be binding upon and shall inure to the benefit of Assignor
and Assignee and their respective successors and assigns.

This Assignment is made without representation or warranty by, or recourse to,
Assignor, except as specifically set forth in the Loan Purchase Agreement dated
as of August 22, 2001, between Assignor and Assignee.

Date:  August _____, 2001

UNION BANK OF CALIFORNIA, N. A.

By: /s/ CHRISTIANA CREEKPAUM
    -----------------------------
    Christiana Creekpaum
    Vice President

EXHIBIT D

August 31, 2001

Via Certified Mail

                                       92
<PAGE>
International Microcomputer Software, Inc.
75 Rowland Way
Novato, California  94945
Attention: Geoffrey Koblick

Re: Sale and Transfer of Loan evidenced by that certain Second Amended and
Restated Secured Non-Revolving Reducing Promissory Note dated April 23, 1999,
made by International Microcomputer Software, Inc., payable to the order of
Union Bank of California, N.A., in the original principal amount of $
7,200,000.00.

Ladies and Gentlemen:

Effective August 31, 2001, UNION BANK OF CALIFORNIA, N. A. has transferred the
above-referenced loan (the "Loan") to Digital Creative Development Corporation
("Purchaser").

Accordingly, you are hereby irrevocably and unconditionally authorized and
directed that each payment of interest, principal, escrows or any other charge
made by you under the Loan is to be made in the form of a check made payable to
the order of Purchaser, and delivered to the following address:

Fleet Bank
Hartford, CT
ABA # 001-900-571
Digital Creative Development Corporation
Account # 942-777-2502

Payments that are not made in accordance with this authorization and direction
will not be credited to payment of such interest, principal, escrows or other
charges until otherwise properly directed.

Yours truly,

UNION BANK OF CALIFORNIA, N. A.

By: /s/ CHRISTIANA CREEKPAUM
    -----------------------------
    Christiana Creekpaum
    Vice President

cc: Arttoday.com, Guarantor (via certified mail)

EXHIBIT E

BORROWER'S AND GUARANTOR'S RELEASE

FOR VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged,
International Microcomputer Software, Inc., a corporation, and Arttoday.com, on
their own behalf and on behalf of their past, present and future officers,
directors, shareholders, representatives, agents, attorneys, administrators,
predecessors, successors and assigns (collectively, the "Releasing Parties"),
hereby enter into this Borrower's and Guarantor's Release ("Release").

The Releasing Parties are entering into this Release in connection with that
certain loan (as heretofore amended, the "Loan"), heretofore made by UNION BANK
OF CALIFORNIA, N. A. ("Bank") to International Microcomputer

                                       93
<PAGE>
Software, Inc., a California corporation ("Borrower"), and Arttoday.com
("Guarantor"), which Loan is evidenced by that certain Second Amended and
Restated Secured Non-Revolving Reducing Promissory Note dated April 23, 1999
made payable by Borrower to the order of Bank in the original principal amount
of $7,200,000.00 (as previously amended, the "Note").

NOW, THEREFORE, the Releasing Parties hereby release and forever discharge Bank
from and against all claims, demands or causes of action arising out of or
relating to the Loan including, without limitation, all actions taken or not
taken by Bank with respect thereto prior to the date hereof.

The Releasing Parties represent, warrant and agree that in executing and
entering into this Release they are not relying and have not relied upon any
representations, promises or statements made by anyone that are not recited,
contained or embodied herein.

The Releasing Parties understand and expressly assume the risk that any fact not
recited, contained or embodied herein may turn out hereafter to be other than,
different from or contrary to the facts now known by the Releasing Parties or
believed by the Releasing Parties to be true. Nevertheless, the Releasing
Parties, with the advice of their own independently selected legal counsel,
intend by this Release to release fully, finally and forever all released
matters and agree that this Release shall be effective in all respects
notwithstanding any difference in facts, and shall not be subject to
termination, modification or rescission by reason of any such difference in
facts. In that regard, the Releasing Parties waive all rights that they may have
California Civil Code Section 1542 (and all similar ordinances and statutory,
regulatory, or judicially created laws or rules of any other jurisdiction),
which provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

The Releasing Parties hereby represent and warrant that they have not heretofore
assigned or transferred or purported to assign or transfer to any person or
entity all or any part of any interest in any claim, contention, demand or cause
of action relating to this Release.

This Release may be executed in two (2) or more counterparts, each of which
shall be an original but all of which together shall constitute but one and the
same instrument.

IN WITNESS WHEREOF, this Release has been executed as of August ____, 2001.

BORROWER

INTERNATIONAL MICROCOMPUTER SOFTWARE, INC.

By:    /s/ GEOFFREY B. KOBLICK
       ---------------------------------
Title:  CEO
       ---------------------------------

GUARANTOR

ARTTODAY.COM

By:    /s/ GEOFFREY B. KOBLICK
       ---------------------------------
Title: CEO
       ---------------------------------

                                       94

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