Document:

EXHIBIT 4.3

                               SCIQUEST.COM, INC.

                        2000 EMPLOYEE STOCK PURCHASE PLAN

     1.   Purpose.  The purpose of the Plan is to provide employees of the
          -------
Company and its Designated Subsidiaries with an opportunity to purchase Common
Stock of the Company through accumulated payroll deductions. It is the intention
of the Company to have the Plan qualify as an "Employee Stock Purchase Plan"
under Section 423 of the Internal Revenue Code of 1986, as amended. Accordingly,
the provisions of the Plan shall be construed so as to extend and limit
participation in a manner consistent with the requirements of that section of
the Code.

     2.   Definitions.
          -----------

          (a)  "Board" shall mean the Board of Directors of the Company or, as
                -----
applicable, a committee to which the Board has delegated authority or
responsibility hereunder pursuant to Section 14(b).

          (b)  "Code" shall mean the Internal Revenue Code of 1986, as amended.
                ----

          (c)  "Common Stock" shall mean the common stock of the Company.
                ------------

          (d)  "Company" shall mean SciQuest.com, Inc., a Delaware corporation,
                -------
and any Designated Subsidiary of the Company.

          (e)  "Compensation" shall mean all compensation other than gain
                ------------
attributable to stock options, including any amounts the participant elects to
defer or exclude from income under a deferred compensation plan or an employee
benefit plan of the Company.

          (f)  "Designated Subsidiary" shall mean any Subsidiary that has been
                ---------------------
designated by the Board from time to time in its sole discretion as eligible to
participate in the Plan.

          (g)  "Employee" shall mean any individual who is an employee of the
                --------
Company for tax purposes whose customary employment with the Company is at least
twenty (20) hours per week and more than five (5) months in any calendar year.
For purposes of the Plan, the employment relationship shall be treated as
continuing intact while the individual is on sick leave or other leave of
absence approved by the Company. Where the period of leave exceeds 90 days and
the individual's right to reemployment is not guaranteed either by statute or by
contract, the employment relationship shall be deemed to have terminated on the
91st day of such leave.

          (h)  "Enrollment Date" shall mean the first day of an Offering Period.
                ---------------

          (i)  "Fair Market Value" shall mean, as of any date, the value of
                -----------------
Common Stock determined as follows:

<PAGE>

               (i) If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing bid price for such stock as quoted on
such exchange or system for regular trading session on the date of such
determination (or, if such date is not a Trading Day, the most recent prior
Trading Day), as reported in The Wall Street Journal or such other source as the
Board deems reliable.

               (ii) If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, its Fair Market Value
shall be the closing bid price for the Common Stock for the regular trading
session on the date of such determination, as reported in The Wall Street
Journal or such other source as the Board deems reliable.

               (iii) In the absence of an established market for the Common
Stock, the Fair Market Value shall be determined in good faith by the Board.

          (j)  "Offering Periods" shall mean the 24-month periods during which
                ----------------
an option granted pursuant to the Plan may be exercised, generally beginning May
1 and November 1 of each year and ending on April 30 and October 31,
respectively, 24 months later. The first Offering Period shall begin on July 1,
2000 and shall end on April 30, 2002. The duration and timing of Offering
Periods may be changed pursuant to Section 4 of this Plan.

          (k)  "Plan" shall mean this Employee Stock Purchase Plan.
                ----

          (l) "Purchase Dates" shall mean October 31 and April 30 of each year.
                --------------

          (m)  "Purchase Price" shall mean an amount equal to 85% of the Fair
                --------------
Market Value of a share of Common Stock on the Enrollment Date or on the
Purchase Date, whichever is lower.

          (n)  "Reserves" shall mean the number of shares of Common Stock
                --------
covered by options under the Plan that have not been exercised and the number of
shares of Common Stock that have been authorized for issuance under the Plan but
not placed under option.

          (o)  "Subsidiary" shall mean a corporation, domestic or foreign, of
                ----------
which not less than 50% of the voting shares are held by the Company or a
Subsidiary, whether or not such corporation now exists or is hereafter organized
or acquired by the Company or a Subsidiary.

          (p)  "Trading Day" shall mean a day on which national stock exchanges
                -----------
and the Nasdaq System are open for trading.

                                       -2-

<PAGE>

     3.   Eligibility.
          -----------

          (a) Any Employee employed by the Company for at least 30 days prior to
a given Enrollment Date shall be eligible to participate in the Plan.

          (b) Any provisions of the Plan to the contrary notwithstanding, no
Employee shall be granted an option under the Plan to the extent that (i)
immediately after such grant, such Employee (or any other person whose stock
would be attributed to such Employee pursuant to Section 424(d) of the Code)
would own capital stock (and/or hold outstanding options to purchase capital
stock) representing 5% or more of the total combined voting power or value of
all classes of the capital stock of the Company or of any Subsidiary or (ii) the
Employee's rights to purchase stock under all employee stock purchase plans of
the Company and its Subsidiaries accrue at a rate that exceeds $25,000 of stock
(determined at the Fair Market Value of the shares on the date of grant for each
calendar year in which such option is outstanding at any time.

     4.   Offering Periods.  The Plan shall be implemented by consecutive,
          ----------------
overlapping Offering Periods of 24 months' duration with new Offering Periods
generally beginning May 1 and November 1 each year. The first Offering Period
shall begin on July 1, 2000 and end on April 30, 2002. Each Offering Period
shall have four Purchase Dates, which shall be each October 31 and April 30
during the Offering Period. The Board may change the duration and timing of
Offering Periods and Purchase Dates, provided that any such change is announced
at least 10 days prior to the scheduled beginning of the first Offering Period
to be affected thereafter.

     5.   Participation.
          -------------

          (a) An eligible Employee may become a participant in the Plan by
completing a subscription agreement in the form of Exhibit A authorizing payroll
deductions and filing it with the Company's human resources department no later
than the day prior to the applicable Enrollment Date. On an individual basis in
cases of hardship, the Company's human resources officer shall have the
discretion to accept subscription agreements until the applicable Enrollment
Date.

          (b) Payroll deductions for a participant shall begin with the first
pay day following the Enrollment Date and shall end with the last pay day in the
Offering Period to which such authorization is applicable, unless sooner
terminated by the participant as provided in Section 10 hereof.

     6.   Payroll Deductions.
          ------------------

          (a) At the time a participant files a subscription agreement, the
participant shall elect to have payroll deductions made on each pay day during
the Offering Period in an

                                       -3-

<PAGE>

amount not exceeding 20% of the Compensation that the participant receives on
each pay day during the Offering Period.

          (b) All payroll deductions made for a participant shall be credited to
the participant's account under the Plan and shall be withheld in whole
percentages only.

          (c) A participant may discontinue his or her participation in the Plan
as provided in Section 10 hereof, or may increase up to 20% or decrease to 0%
the rate of his or her payroll deductions by completing and filing with the
Company a new subscription agreement authorizing a change in payroll deduction
rate. A change in rate shall be effective with the first full payroll period
that begins after the Company has received the new subscription agreement. A
participant's subscription agreement shall remain in effect for successive
Offering Periods unless terminated as provided in Section 10 hereof.

          (d) Notwithstanding the foregoing, to the extent necessary to comply
with the $25,000 calendar-year accrual and the 5% ownership limitations set
forth in Section 3(b), a participant's payroll deductions may be decreased to 0%
at any time prior to a Purchase Date. Payroll deductions at the rate provided in
such participant's subscription agreement shall resume immediately following
such Purchase Date, unless terminated by the participant as provided in Section
10 hereof.

     7.   Grant of Option.
          ---------------

          (a) On the Enrollment Date of each Offering Period, each participant
shall be granted an option to purchase on each Purchase Date of the Offering
Period at the applicable Purchase Price up to the number of shares of the
Company's Common Stock determined by dividing the sum of the participant's
payroll deductions accumulated prior to such Purchase Date and retained in the
participant's account by the applicable Purchase Price; provided, however, that
in no event shall a participant be permitted to purchase on any Purchase Date
more than 5,000 shares of Common Stock (subject to adjustment pursuant to
Section 19), and provided further that such purchase shall be subject to the
limitations set forth in Sections 3(b) and 13. The Board may, in its absolute
discretion, for future Offering Periods increase or decrease the maximum number
of shares of the Company's Common Stock a participant may purchase on a Purchase
Date. Exercise of an option shall occur as provided in Section 8, unless the
participant has withdrawn pursuant to Section 10.

          (b) To the extent permitted by any applicable laws, regulations, or
stock exchange rules, if the Fair Market Value of the Common Stock on the first
Purchase Date in a Offering Period is lower than the Fair Market Value of the
Common Stock on the Enrollment Date, all participants in the Offering Period
shall be withdrawn automatically after the exercise of their options and re-
enrolled in the next succeeding Offering Period as of the first day thereof.

                                       -4-

<PAGE>

     8.   Exercise of Option.
          ------------------

          (a) Unless a participant withdraws from the Plan as provided in
Section 10, the participant's options shall be exercised automatically on each
Purchase Date, and the maximum number of full shares subject to the option shall
be purchased for such participant at the applicable Purchase Price with the
accumulated payroll deductions in the participant's account. No fractional
shares shall be purchased. Any payroll deductions accumulated in a participant's
account that are not sufficient to purchase a full share shall be retained in
the participant's account until the next Purchase Date, subject to earlier
withdrawal by the participant as provided in Section 10.

          (b) If the Board determines that on a given Purchase Date the number
of shares with respect to which options are to be exercised exceeds the number
of shares of Common Stock available for sale under the Plan, the Board may, in
its sole discretion, provide that the Company shall make a pro rata allocation
of the shares of Common Stock available for purchase on such Purchase Date in as
uniform a manner as shall be practicable and as it shall determine in its sole
discretion to be equitable among all participants and terminate the Offering
Periods then in effect.

     9.   Delivery.  As promptly as practicable after each Purchase Date, the
          --------
Company shall arrange the delivery, electronically or otherwise, to accounts in
the participants' names at a brokerage company selected by the Company of the
shares purchased upon exercise of options.

     10.  Withdrawal.
          ----------

          (a) A participant may withdraw all but not less than all of the
payroll deductions credited to his or her account at any time by giving written
notice to the Company in the form of Exhibit B to this Plan. Such payroll
deductions shall be paid to the participant promptly after receipt of notice of
the participant's notice of withdrawal. The participant's option for the
Offering Period shall automatically terminate, and no further payroll deductions
for the purchase of shares shall be made for such Offering Period. If a
participant withdraws from an Offering Period, payroll deductions for the
participant's account shall not resume at the beginning of the next succeeding
Offering Period unless the participant delivers to the Company a new
subscription agreement.

          (b) A participant's withdrawal from an Offering Period shall not have
any effect upon the participant's eligibility to participate in any similar plan
that may thereafter be adopted by the Company or in any succeeding Offering
Period that begins after the Offering Period from which the participant
withdraws.

     11.  Termination of Employment.  Upon a participant's ceasing to be an
          -------------------------
Employee for any reason, the participant shall be deemed to have withdrawn from
the Plan, and the payroll deductions credited to the participant's account under
the Plan during the Offering Period but not yet used to exercise the
participant's option shall be returned and paid to the participant.

                                       -5-

<PAGE>

     12.  Interest.  No interest shall accrue on the payroll deductions of a
          --------
participant in the Plan.

     13.  Stock.
          -----

          (a) The maximum number of shares of the Company's Common Stock
authorized for issuance under the Plan shall be one million one hundred thousand
(1,100,000) shares.

          (b) Participants shall have no interest or voting rights in shares
covered by options until such options have been exercised.

          (c) At the election of the participant, shares purchased by a
participant under the Plan shall be registered in the name of the participant or
the names of the participant and his or her spouse.

     14.  Administration.
          --------------

          (a) The Plan shall be administered by the Board. The Board shall have
full and exclusive discretionary authority to construe, interpret and apply the
terms of the Plan, to determine eligibility and to adjudicate all disputed
claims filed under the Plan. Every finding, decision and determination made by
the Board shall, to the full extent permitted by law, be final and binding upon
all parties.

          (b) Notwithstanding the foregoing, the Board may delegate, by
resolutions adopted prior to or after the effective date of this Plan, any or
all of its authority and responsibilities hereunder to such committee of the
Board as the Board shall designate, to the extent such delegation is permitted
by applicable law, the articles and bylaws of the Company and the applicable
stock exchange or national market system rules. In the event of such delegation,
all references herein to the Board shall, to the extent applicable, be deemed to
refer to and include such committee.

     15.  Designation of Beneficiary.
          --------------------------

          (a) A participant may file a written designation of a beneficiary who
is to receive any shares and cash, if any, from the participant's account under
the Plan in the event of such participant's death subsequent to an Exercise Date
on which the participant's option is exercised but prior to delivery to such
participant of such shares and cash. In addition, a participant may file a
written designation of a beneficiary who is to receive any cash from the
participant's account under the Plan in the event of such participant's death
prior to exercise of his or her option.

          (b)  Such designation of beneficiary may be changed by the participant
at any time by written notice. In the event of the death of a participant and in
the absence of a

                                       -6-

<PAGE>

beneficiary validly designated under the Plan who is living at the time of such
participant's death, the Company shall deliver such shares and/or cash to the
executor or administrator of the estate of the participant, or if no such
executor or administrator has been appointed (to the knowledge of the Company),
the Company, in its discretion, may deliver such shares and/or cash to the
spouse or to any one or more dependents or relatives of the participant, or if
no spouse, dependent or relative is known to the Company, then to such other
person as the Company may designate.

     16.  Transferability.  No payroll deductions credited to a participant's
          ---------------
account and no rights with regard to the exercise of an option under the Plan
may be assigned, transferred, pledged or otherwise disposed of in any way by the
participant (other than by will or the laws of descent and distribution). Any
such attempt at assignment, transfer, pledge or other disposition shall be
without effect, except that the Company may treat such act as an election to
withdraw from the Plan in accordance with Section 10 hereof.

     17.  Use of Funds.  Payroll deductions received or held by the Company
          ------------
under the Plan may be used by the Company for any corporate purpose. The Company
shall not be obligated to segregate such payroll deductions.

     18.  Reports.  Individual accounts shall be maintained for each participant
          -------
in the Plan. Statements of account shall be given to participating Employees
following each Purchase Date, which statements shall set forth the amounts of
payroll deductions, the Purchase Price, the number of shares purchased and the
remaining cash balance, if any.

     19.  Adjustments Upon Changes in Capitalization, Dissolution, Liquidation,
          ---------------------------------------------------------------------
          Merger or Asset Sale.
          --------------------

          (a) Subject to any required action by the shareholders of the Company,
the Reserves, the maximum number of shares each participant may purchase on a
Purchase Date and the price per share and the number of shares of Common Stock
covered by each outstanding option shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock or any other increase or decrease in the
number of shares of Common Stock effected without receipt of consideration by
the Company. The conversion of convertible securities of the Company shall not
be deemed to have been "effected without receipt of consideration." Such
adjustments shall be made by the Board, whose determination shall be final,
binding and conclusive. Except as expressly provided herein, no issuance by the
Company of shares of stock of any class, or securities convertible into shares
of stock of any class, shall affect, and no adjustment by reason thereof shall
be made, with respect to the number or price of shares of Common Stock subject
to an option.

          (b) In the event of the proposed dissolution or liquidation of the
Company, the Offering Periods then in progress shall be shortened by setting a
new Purchase Date, that is prior to the date of the proposed dissolution or
liquidation (the "New Purchase Date"), and the Plan shall terminate prior to the
consummation of such proposed dissolution or liquidation, unless

                                       -7-

<PAGE>

provided otherwise by the Board. The Board shall notify each participant in
writing at least 10 business days prior to the New Purchase Date that the
Purchase Date for the participant's option has been changed to the New Purchase
Date and that the participant's option shall be exercised automatically on the
New Purchase Date, unless prior to such date the participant has withdrawn from
the Offering Period as provided in Section 10.

          (c) In the event of a proposed sale of all or substantially all of the
assets of the Company, or the merger of the Company with or into another
corporation, outstanding options shall be assumed or equivalent options
substituted by the successor corporation or a parent or Subsidiary of the
successor corporation. In the event that the successor corporation refuses to
assume or substitute for the options, the Offering Periods then in progress
shall be shortened by setting a New Purchase Date. The New Purchase Date shall
be prior to the date of the Company's proposed sale or merger. The Board shall
notify each participant in writing at least 10 business days prior to the New
Purchase Date that the Purchase Date for the participant's option has been
changed to the New Purchase Date and that the participant's option shall be
exercised automatically on the New Purchase Date, unless prior to such date the
participant has withdrawn from the Offering Period as provided in Section 10.

     20.  Amendment or Termination.
          ------------------------

          (a) The Board of Directors of the Company may at any time and for any
reason terminate or amend the Plan. Except as provided in Section 19 and this
Section 20, no such termination may adversely affect options previously granted;
provided, however, that the Board may terminate a Offering Period on any
Purchase Date if the Board determines that the termination of the Offering
Period or the Plan is in the best interests of the Company and its shareholders.
To the extent necessary and desirable to comply with Section 423 of the Code (or
any successor rule or provision), the Company shall seek shareholder approval of
the Plan and of amendments to the Plan.

          (b) Without shareholder consent and without regard to whether any
participant rights may be considered to have been "adversely affected," the
Board shall be entitled to change the Offering Periods, limit the frequency
and/or number of changes permitted in the amount withheld during a Offering
Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U. S. Dollars, permit payroll withholding in excess of the
amount designated by a participant in order to adjust for delays or mistakes in
the Company's processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock
for each participant properly correspond to amounts withheld from the
participant's Compensation, and establish such other limitations and procedures
that the Board determines in its sole discretion advisable and that are
consistent with the Plan.

     21.  Notices.  All notices or other communications by a participant to the
          -------
Company in connection with the Plan shall be deemed to have been duly given when
received in the form specified by the Company at the location, or by the person,
designated by the Company for the receipt thereof.

                                       -8-

<PAGE>

     22.  Conditions Upon Issuance of Shares.  Shares shall not be issued with
          ----------------------------------
respect to an option unless the exercise of such option and the delivery of such
shares comply with all applicable provisions of law, domestic or foreign,
including, without limitation, the Code, the Securities Act of 1933, as amended,
the Securities Exchange Act of 1934, as amended, the rules and regulations
promulgated thereunder, and the requirements of any stock exchange upon which
the shares may then be listed, and such issuance shall be further subject to the
approval of counsel for the Company with respect to such compliance.

     23.  Term of Plan.  The Plan shall become effective on July 1, 2000.  It
          ------------
shall continue in effect until April 30, 2010 unless sooner terminated under
Section 20 hereof.

                                       -9-

<PAGE>

                                    EXHIBIT A
                                   ---------

                              SCIQUEST.COM, INC.

                        2000 EMPLOYEE STOCK PURCHASE PLAN

                             SUBSCRIPTION AGREEMENT

_____ Original Application                       Enrollment Date: __________
_____ Change in Payroll Deduction Rate
_____ Change of Beneficiary(ies)

1.   _____________________________________ hereby elects to participate in the
     SciQuest.com, Inc. 2000 Employee Stock Purchase Plan (the "Employee Stock
     Purchase Plan") and subscribes to purchase shares of the Company's Common
     Stock in accordance with this Subscription Agreement and the Employee Stock
     Purchase Plan.

2.   I hereby authorize payroll deductions from each paycheck in the amount of
     ____% of my Compensation on each payday (up to 20%) during the Offering
     Period in accordance with the Employee Stock Purchase Plan. (Please note
     that no fractional percentages are permitted.)

3.   I understand that said payroll deductions shall be accumulated for the
     purchase of shares of Common Stock at the applicable Purchase Price
     determined in accordance with the Employee Stock Purchase Plan. I
     understand that if I do not withdraw from an Offering Period, any
     accumulated payroll deductions will be used to automatically exercise my
     option.

4.   I have received a copy of the complete Employee Stock Purchase Plan. I
     understand that my participation in the Employee Stock Purchase Plan is in
     all respects subject to the terms of the Plan. I understand that the tax
     preferences described in paragraph 6 below is subject to shareholder
     approval of the Employee Stock Purchase Plan.

5.   Shares purchased for me under the Employee Stock Purchase Plan should be
     issued in the name(s) of (Employee or Employee and Spouse only):

     ----------------------------.

6.   I understand that if I dispose of any shares received by me pursuant to the
     Plan before the later of 2 years after the Enrollment Date (the first day
     of the Offering Period during which I purchased such shares) or 1 year
     after purchase, I will be treated for federal income tax purposes as having
     received ordinary income at the time of such disposition in an amount equal
     to the excess of the fair market value of the shares at the time such
     shares were purchased over the price I paid for the shares.  If I dispose
     of such shares

<PAGE>

     after this holding period, I understand that I will be treated for federal
     income tax purposes as having received ordinary income at the time of such
     disposition only to the extent of an amount equal to the lesser of (1) the
     excess of the fair market value of the shares at the time of disposition
     over the purchase price which I paid for the shares, or (2) 15% of the fair
     market value of the shares on the first day of the Offering Period. The
     remainder of the gain or loss, if any, recognized on such disposition will
     be taxed as capital gain or loss.

7.   I hereby agree to be bound by the terms of the Employee Stock Purchase
     Plan. The effectiveness of this Subscription Agreement is dependent upon my
     eligibility to participate in the Employee Stock Purchase Plan.

8.   In the event of my death, I hereby designate the following as my
     beneficiary(ies) to receive all payments and shares due me under the
     Employee Stock Purchase Plan:

          NAME (Please print):               ___________________________________
                                             First       Middle     Last

                                             -----------------------------------
                                             Relationship

                                             -----------------------------------
                                             Address

I UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT
SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME.

Dated: ___________________                   ___________________________________
                                             Signature of Employee

                                       -2-

<PAGE>

                                    EXHIBIT B
                                   ---------

                              SCIQUEST.COM, INC.

                        2000 EMPLOYEE STOCK PURCHASE PLAN

                              NOTICE OF WITHDRAWAL

     The undersigned participant in the Offering Period of the SciQuest.com,
Inc. 2000 Employee Stock Purchase Plan which began on ___________ 200__ (the
"Enrollment Date") hereby notifies the Company that he or she hereby withdraws
from the Offering Period. He or she hereby directs the Company to pay to the
undersigned as promptly as practicable all the payroll deductions credited to
his or her account with respect to such Offering Period. The undersigned
understands and agrees that his or her option for such Offering Period will be
automatically terminated. The undersigned understands further that no further
payroll deductions will be made for the purchase of shares in the current
Offering Period and the undersigned shall be eligible to participate in
succeeding Offering Periods only by delivering to the Company a new Subscription
Agreement.

Date:_____________________                   ___________________________________
                                             Name of Participant:

                                             -----------------------------------
                                             Signature

                                             -----------------------------------
                                             AddressCERTIFICATE OF DESIGNATIONS,

                             PREFERENCES AND RIGHTS

                                       OF

                            SERIES A PREFERRED STOCK

                                       OF

                             A SURE eCOMMERCE, INC.

      A Sure eCommerce, Inc., a corporation organized and existing under the
laws of the State of Nevada (the "Corporation"), hereby certifies that the
following resolutions were adopted by the Board of Directors of the Corporation
pursuant to the authority of the Board of Directors as required by Section 151
of the Nevada General Corporation Law.

      RESOLVED, that pursuant to the authority granted to and vested in the
Board of Directors of this Corporation (the "Board of Directors" or the "Board")
in accordance with the provisions of its Certificate of Incorporation and
Bylaws, each as amended through the date hereof, the Board of Directors hereby
authorizes a series of the Corporation's previously authorized Preferred Stock,
par value $0.001 per share (the "Preferred Stock"), and hereby states the
designation and number of shares, and fixes the relative rights, preferences,
privileges, powers and restrictions thereof as follows:

                             I. CERTAIN DEFINITIONS.

      For purposes of this Certificate of Designations, capitalized terms are
defined in this Certificate of Designations or shall have the following
meanings:

      "Common Stock" means the common stock of the Corporation, $0.001 par value
per share.

      "Escrow Agent" means the Escrow Agent as defined in the Purchase
Agreement.

      "Issuance Date" means the date of the Closing under the Agreement with
respect to the initial issuance of the Series A Preferred Stock.

      "Per Share Market Value" means on any particular date (a) the closing bid
price per share of the Common Stock on such date on The Over-The-Counter
Bulletin Board, the OTC Bulletin Board(R) ("OTCBB") or other stock exchange on
which the Common Stock has been listed or if there is no such price on such
date, then the last bid price on such exchange on the date nearest preceding
such date, or

                                       1
<PAGE>

(b) if the Common Stock is not listed on OTCBB or any stock exchange, the
closing bid price for a share of Common Stock in the over-the-counter market, as
reported by the NASD at the close of business on such date, or (c) if the Common
Stock is not quoted by the NASD, the closing bid price for a share of Common
Stock in the over-the-counter market as reported by the National Quotation
Bureau Incorporated (or similar organization or agency succeeding to its
functions of reporting prices), or (d) if the Common Stock is no longer publicly
traded the fair market value of a share of Common Stock as determined by an
Appraiser (as defined in Section IV(c)(iv) selected in good faith by the Holders
of a majority of principal amount of outstanding Series A Preferred Stocks;
provided, however, that the Corporation, after receipt of the determination by
such Appraiser, shall have the right to select an additional Appraiser, in which
case, the fair market value shall be equal to the average of the determinations
by each such Appraiser, in each case as reported by Bloomberg Financial Markets,
or if not available, a comparable reporting service chosen by the Corporation
reasonably acceptable to the Holder of a majority of the outstanding shares of
Series A Preferred Stock.

      "Person" means an individual or a corporation, partnership, trust,
incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or political subdivision
thereof) or other entity of any kind.

      "Purchase Agreement" is the Series A Preferred Stock Purchase Agreement
dated June 27, 2000, by and among the Corporation and GEM Global Yield Fund
Limited.

      "Trading Day" means (a) a day on which the Common Stock is quoted on the
OTCBB or principal stock exchange on which the Common Stock has been listed, or
(b) if the Common Stock is not quoted on the OTCBB or any stock exchange, a day
on which the Common Stock is quoted in the over-the-counter market, as reported
by the National Association of Securities Dealers, Inc. ("NASD"), or (c) if the
Common Stock is not quoted on the NASD, a day on which the Common Stock is
quoted in the over-the-counter market as reported by the National Quotation
Bureau Incorporated (or any similar organization or agency succeeding its
functions of reporting prices).

                           II. DESIGNATION AND AMOUNT.

      The designation of this series, which consists of Six Thousand (6,000)
shares of Preferred Stock, is the Series A Preferred Stock (the "Series A
Preferred Stock") and the stated value shall be One Thousand U.S. Dollars
($1,000.00) per share (the "Stated Value").

                                 III. DIVIDENDS.

      (a) The holder of the shares of Series A Preferred Stock as they appear on
the stock records of the Corporation ("Holder" or "Holders") shall be entitled
to receive, the Board of Directors shall be obligated to declare and the
Corporation shall be obligated to pay, out of funds legally available for the
payment of dividends, dividends in cash at the rate of one percent (1%) per
annum (computed on the basis

                                       2
<PAGE>

of a 360-day year) (the "Dividend Rate") on the Stated Value of each share of
Series A Preferred Stock on and as of the most recent Conversion Date (as
defined below) with respect to each Dividend Period (as defined below).
Dividends on the Series A Preferred Stock shall be cumulative from the Issuance
Date.

      (b) Each dividend (other than the first dividend, which shall reflect
accrual only from the Issuance Date) shall be payable on each Conversion Date
(as defined below), to the Holders of record of shares of the Series A Preferred
Stock, as they appear on the stock records of the Corporation at the close of
business on such Conversion Date. For the purposes hereof, "Dividend Period"
means the period commencing on and including the day after the immediately
preceding Conversion Date and ending on and including the immediately subsequent
Conversion Date.

      (c) At the option of the Corporation, the dividend shall be paid in cash
or through the issuance of duly and validly authorized and issued, fully paid
and non-assessable, shares of Series A Preferred Stock valued at the Stated
Value. No interest, or sum of money in lieu of interest, shall be payable in
respect of any dividend payment or payments on the Series A Preferred Stock that
may be in arrears.

      (d) So long as any shares of the Series A Preferred Stock are outstanding,
no dividends, except as described in the next succeeding sentence, shall be
declared or paid or set apart for payment on Pari Passu Securities (as defined
herein) for any period unless full cumulative dividends required to be paid in
cash have been or contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof set apart for such payment on the Series A
Preferred Stock for all Dividend Periods terminating on or prior to the date of
payment of the dividend on such class or series of Pari Passu Securities. When
dividends are not paid in full or a sum sufficient for such payment is not set
apart, as aforesaid, all dividends declared upon shares of the Series A
Preferred Stock and all dividends declared upon any other class or series of
Pari Passu Securities shall be declared ratably in proportion to the respective
amounts of dividends accumulated and unpaid on the Series A Preferred Stock and
accumulated and unpaid on such Pari Passu Securities.

      (e) So long as any shares of the Series A Preferred Stock are outstanding,
no dividends shall be declared or paid or set apart for payment or other
distribution declared or made upon Junior Securities (as defined herein), nor
shall any Junior Securities be redeemed, purchased or otherwise acquired (other
than a redemption, purchase or other acquisition of shares of Common Stock made
for purposes of an employee incentive or benefit plan (including a stock option
plan) of the Corporation or any subsidiary) for any consideration (or any moneys
be paid to or made available for a sinking fund for the redemption of any shares
of any such stock) by the Corporation, directly or indirectly, unless in each
case (i) the full cumulative dividends required to be paid in cash on all
outstanding shares of the Series A Preferred Stock and any other Pari Passu
Securities shall have been paid or set apart for payment for all past Dividend
Periods with respect to the Series A Preferred Stock and all past dividend
periods with respect to such Pari Passu Securities, and (ii) sufficient funds
shall have been paid or set apart for the payment of the dividend for the
current Dividend Period with respect to the Series A Preferred Stock and the
current dividend period with respect to such Pari Passu Securities.

                                       3
<PAGE>

                                 IV. CONVERSION.

            (a) The outstanding shares of Series A Preferred Stock shall be
convertible into shares of Common Stock at the Conversion Price as defined
below, and subject to the Limitation on Conversion in Section 4.19 of the
Purchase Agreement, at the option of the Holder in whole or in part, at any
time, commencing on the Issuance Date. Any conversion under this Section IV(a)
shall be for a minimum Stated Value of $10,000.00 of Series A Preferred Stock.
The Holder shall effect conversions by surrendering the shares of Series A
Preferred Stock (or such portions thereof) to be converted to the Corporation,
together with the form of conversion notice attached hereto as Exhibit A (the
"Holder Notice of Conversion") in the manner set forth in Section IV(j). Each
Holder Notice of Conversion shall specify the Stated Value of Series A Preferred
Stock to be converted, and the date on which such conversion is to be effected
(the "Holder Conversion Date"). Except as provided herein, each Holder Notice of
Conversion, once given, shall be irrevocable. If the Holder is converting less
than all of the Stated Value represented by a certificate for the Series A
Preferred Stock(s) tendered by the Holder in the Holder Notice of Conversion,
the Corporation shall deliver to the Holder a new Series A Preferred Stock
certificate for such Stated Value as has not been converted within two (2)
Business Days of the Holder Conversion Date. In the event that the Escrow Agent
holds the Series A Preferred Stock on behalf of the Holder, the Corporation
agrees that in lieu of surrendering the Series A Preferred Stock upon every
partial conversion, the Escrow Agent shall give the Corporation and the Holder
written notice of the amount of the Series A Preferred Stock left unconverted.
Upon the entire conversion of the Series A Preferred Stock or the redemption of
the Series A Preferred Stock, the Escrow Agent shall return the Series A
Preferred Stock to the Corporation for cancellation.

            (b) Not later than two (2) Business Days after the Conversion Date,
the Escrow Agent will deliver to the Holder (i) a certificate or certificates
which shall be free of restrictive legends and trading restrictions,
representing the number of shares of Common Stock being acquired upon the
conversion of Series A Preferred Stock and (ii) once received from the
Corporation, Series A Preferred Stock in principal amount equal to the principal
amount of Series A Preferred Stock not converted; provided, however that the
Corporation shall not be obligated to issue certificates evidencing the shares
of Common Stock issuable upon conversion of any Series A Preferred Stock, until
the Series A Preferred Stock are either delivered for conversion to the Escrow
Agent or Corporation or any transfer agent for the Series A Preferred Stock or
Common Stock, or the Holder notifies the Corporation that such Series A
Preferred Stock have been lost, stolen or destroyed and provides an agreement
reasonably acceptable to the Corporation to indemnify the Corporation from any
loss incurred by it in connection therewith. In the case of a conversion
pursuant to a Holder Notice of Conversion, if such certificate or certificates
are not delivered by the date required under this Section IV(b), the Holder
shall be entitled by providing written notice to the Corporation at any time on
or before its receipt of such certificate or certificates thereafter, to rescind
such conversion, in which event the Corporation shall immediately return the
Series A Preferred Stock tendered for conversion.

                                       4
<PAGE>

                  The Corporation agrees that, at any time the conversion price
      of the Series A Preferred Stock is such that the number of shares of
      Common Stock in escrow (the "Series A Preferred Stock Escrow Shares") is
      less than 200% of the number of shares of Common Stock that would be
      needed to satisfy full conversion of all of the Series A Preferred Stock
      given the then current conversion price (the "Full Conversion Shares"),
      upon five (5) days written notice of such circumstance to the Corporation
      by the Purchaser and/or Escrow Agent, it will issue additional share
      certificates in the names of each of the Purchasers in denominations of
      10,000 shares, and deliver same to the Escrow Agent, such that the new
      number of Series A Preferred Stock Escrow Shares is equal to 200% of the
      Full Conversion Shares.

            (c) (i) The Conversion Price for each Series A Preferred Stock in
effect on any Conversion Date shall be the lesser of (X) [the lower of US$3.00
or one hundred thirty percent (130%) of the average Per Share Market Value for
the five (5) Trading Days immediately prior to the Closing Date] (the "Fixed
Conversion Price") or (Y) one hundred percent (100%) of the average of the three
(3) lowest Per Share Market Value prices during the forty-five (45) day period
immediately preceding the Conversion Date ("Floating Conversion Price"). The
conversion of the Series A Preferred Stock is subject to the Limitation on
Conversion in Section 4.19 of the Purchase Agreement as set forth below.

            "In addition to and not in lieu of the limitations on conversion set
            forth in the Series A Preferred Stock Certificate of Designations,
            the conversion and exercise rights of each of the Purchasers set
            forth in the Series A Preferred Stock Certificate of Designations
            and the Warrants, as applicable, shall be limited, solely to the
            extent required, from time to time, such that, unless each of the
            Purchasers give written notice 75 days in advance to the Corporation
            of their intention to exceed the Limitations of Conversions as
            defined herein, with respect to all or a specified amount of the
            Series A Preferred Stock and the corresponding number of the
            Underlying Shares, in no instance shall the maximum number of shares
            of Common Stock which the Purchasers (singularly, together with any
            Persons who in the determination of such Purchasers, together with
            such Purchasers, constitute a group as defined in Rule 13d-5 of the
            Exchange Act) may receive in respect of any conversion of the Series
            A Preferred Stock, or exercise of the Warrants, exceed, at any one
            time, an amount equal to the remainder of (i) 4.99% of the then
            issued and outstanding shares of Common Stock of the Corporation
            following such conversion or exercise minus (ii) the number of
            shares of Common Stock of the Corporation then owned by any of the
            Purchasers (including any shares of Common Stock deemed beneficially
            owned due to ownership of the Series A Preferred Stock and Warrants)
            (the foregoing being herein referred to as the "Limitation on
            Conversion"); provided, however, that if

                                       5
<PAGE>

            10 Business Days have elapsed since any of the Purchasers shall have
            declared an Event of Default (as that term is defined in the Series
            A Preferred Stock Certificate of Designations) and the Corporation
            shall not have cured such Event of Default, the provisions of this
            Section 4.19 shall be null and void from and after such date. The
            Corporation shall, promptly upon its receipt of a notice of
            conversion tendered by any of the Purchasers (or its sole designee),
            as applicable, and upon its receipt of a notice of exercise under
            the terms of the Warrants, notify such Purchaser by telephone and by
            facsimile of the number of shares of Common Stock outstanding on
            such date and the number of Underlying Shares which would be
            issuable to such Purchaser (or its sole designee, as the case may
            be) if the conversion requested in such notice of conversion or
            exercise requested in such notice of exercise were effected in full,
            whereupon, notwithstanding anything to the contrary set forth in the
            Series A Preferred Stock Certificate of Designations or the
            Warrants, such Purchaser may within one Trading Day of its receipt
            of the Company notice required by this Section 4.19 by facsimile
            revoke such conversion or exercise to the extent (in whole or in
            part) that it determines that such conversion or exercise would
            result in such Purchaser owning shares of Stock in excess of the
            Limitation on Conversion."

            (c) (ii) If the Corporation, at any time while any Series A
Preferred Stock are outstanding, (a) shall pay a stock dividend or otherwise
make a distribution or distributions on shares of its Junior Securities payable
in shares of its capital stock (whether payable in shares of its Common Stock or
of capital stock of any class), (b) subdivide outstanding shares of Common Stock
into a larger number of shares, (c) combine outstanding shares of Common Stock
into a smaller number of shares, or (d) issue by reclassification of shares of
Common Stock any shares of capital stock of the Corporation, the Fixed
Conversion Price designated in Section IV(c)(i) shall be multiplied by a
fraction of which the numerator shall be the number of shares of Common Stock of
the Corporation outstanding before such event and of which the denominator shall
be the number of shares of Common Stock outstanding after such event. Any
adjustment made pursuant to this Section IV(c)(ii) shall become effective
immediately after the record date for the determination of stockholders entitled
to receive such dividend or distribution and shall become effective immediately
after the effective date in the case of a subdivision, combination or
re-classification.

            (c) (iii) If the Corporation, at any time while any Series A
Preferred Stock are outstanding, shall issue or sell shares of Common Stock, or
options, warrants or other rights to subscribe for or purchase shares of Common
Stock, (excluding shares of Common Stock issuable upon exercise of options,
warrants or conversion rights granted prior to the date hereof) and at a price
per share less than the Per Share Market Value of Common Stock at the issue date
mentioned below, the Fixed Conversion Price designated in Section IV(c)(i) shall
be multiplied by a fraction, of which the denominator shall be the number of
shares of Common Stock (excluding treasury shares, if any) outstanding on the
date of issuance

                                       6
<PAGE>

of such rights or warrants plus the number of additional shares of Common Stock
offered for subscription or purchase, and of which the numerator shall be the
number of shares of Common Stock (excluding treasury shares, if any) outstanding
on the date of issuance of such shares, options, warrants or rights plus the
number of shares which the aggregate offering price of the total number of
shares so offered would purchase at such Per Share Market Value. Such adjustment
shall be made whenever such 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. However, upon the
expiration of any right or warrant to purchase Common Stock the issuance of
which resulted in an adjustment in the Conversion Price designated in Section
IV(c)(i) pursuant to this Section IV(c)(iii), if any such right or warrant shall
expire and shall not have been exercised, the Fixed Conversion Price designated
in Section IV(c)(i) shall immediately upon such expiration be recomputed and
effective immediately upon such expiration be increased to the price which it
would have been (but reflecting any other adjustments in the Conversion Price
made pursuant to the provisions of this Article IV after the issuance of such
rights or warrants) had the adjustment of the Conversion Price made upon the
issuance of such rights or warrants been made on the basis of offering for
subscription or purchase only that number of shares of Common Stock actually
purchased upon the exercise of such rights or warrants actually exercised.

            (c) (iv) If the Corporation, at any time while Series A Preferred
Stock are outstanding, shall distribute to all holders of Common Stock (and not
to Holders of Series A Preferred Stock) evidences of its indebtedness or assets
or rights or warrants to subscribe for or purchase any security (excluding those
referred to in Section IV(c)(iii) above) then in each such case the Conversion
Price at which each Series A Preferred Stock shall thereafter be convertible
shall be determined by multiplying the Fixed Conversion Price in effect
immediately prior to the record date fixed for determination of stockholders
entitled to receive such distribution by a fraction of which the denominator
shall be the Per Share Market Value of Common Stock determined as of the record
date mentioned above, and of which the numerator shall be such Per Share Market
Value of the Common Stock on such record date less the then fair market value at
such record date of the portion of such assets or evidence of indebtedness so
distributed applicable to one outstanding share of Common Stock as determined by
the Board of Directors in good faith; provided, however that in the event of a
distribution exceeding ten percent (10%) of the net assets of the Corporation,
such fair market value shall be determined by a nationally recognized or major
regional investment banking firm or firm of independent certified public
accountants of recognized standing (which may be the firm that regularly
examines the financial statements of the Corporation) (an "Appraiser") selected
in good faith by the Holders of a majority of the principal amount of the Series
A Preferred Stock then outstanding; and provided, further, that the Corporation,
after receipt of the determination by such Appraiser shall have the right to
select an additional Appraiser, in which case the fair market value shall be
equal to the average of the determinations by each such Appraiser. In either
case the adjustments shall be described in a statement provided to the Holder
and all other Holders of Series A Preferred Stock of the portion of assets or
evidences of indebtedness so distributed or such subscription rights applicable
to one share of Common Stock. Such adjustment shall be made whenever any such
distribution is made and shall become effective immediately after the record
date mentioned above.

                                       7
<PAGE>

            (c) (v) All calculations under this Article IV shall be made to the
nearest 1/1000th of a cent or the nearest 1/1000th of a share, as the case may
be. Any calculation over .005 shall be rounded up to the next cent or share and
any calculation less than .005 shall be rounded down to the previous cent or
share.

            (c) (vi) In the event the Fixed Conversion Price is not adjusted
pursuant to Section IV(c)(ii), (iii), (iv), or (v), within two (2) Business Days
following the occurrence of an event described therein, the Holder shall have
the right to require the Corporation to redeem the Series A Preferred Stock at
135% of Stated Value and simultaneously pay such amount and all accrued
dividends and dividends to the Holder pursuant to the written instructions
provided by the Holder.

            (c) (vii) Whenever the Fixed Conversion Price is adjusted pursuant
to Section IV(c)(ii),(iii), (iv) or (v), or redeemed pursuant to Section
IV(c)(vi), the Corporation shall within two (2) days after the determination of
the new Fixed Conversion Price mail and fax to the Holder and to each other
Holder of Series A Preferred Stock, a notice setting forth the Fixed Conversion
Price after such adjustment and setting forth a brief statement of the facts
requiring such adjustment.

            (c) (viii) In case of any reclassification of the Common Stock, any
consolidation or merger of the Corporation with or into another person, the sale
or transfer of all or substantially all of the assets of the Corporation or any
compulsory share exchange pursuant to which the Common Stock is converted into
other securities, cash or property, then each holder of Series A Preferred Stock
then outstanding shall have the right thereafter to convert such Series A
Preferred Stock only into the shares of stock and other securities and property
receivable upon or deemed to be held by holders of Common Stock following such
reclassification, consolidation, merger, sale, transfer or share exchange
(except in the event the property is cash, then the Holder shall have the right
to convert the Series A Preferred Stock and receive cash in the same manner as
other stockholders), and the Holder shall be entitled upon such event to receive
such amount of securities or property as the shares of the Common Stock into
which such Series A Preferred Stock could have been converted immediately prior
to such reclassification, consolidation, merger, sale, transfer or share
exchange would have been entitled. The terms of any such consolidation, merger,
sale, transfer or share exchange shall include such terms so as to continue to
give to the holder the right to receive the securities or property set forth in
this Section IV(c)(viii) upon any conversion following such consolidation,
merger, sale, transfer or share exchange. This provision shall similarly apply
to successive reclassifications, consolidations, mergers, sales, transfers or
share exchanges.

            (ix) If:

                  (A)   the Corporation shall declare a dividend (or any other
                        distribution) on its Common Stock; or

                  (B)   the Corporation shall declare a special nonrecurring
                        cash dividend on or a redemption of its Common Stock; or

                                       8
<PAGE>

                  (C)   the Corporation shall authorize the granting to all
                        holders of the Common Stock rights or warrants to
                        subscribe for or purchase any shares of capital stock of
                        any class or of any rights; or

                  (D)   the approval of any stockholders of the Corporation
                        shall be required in connection with any
                        reclassification of the Common Stock of the Corporation
                        (other than a subdivision or combination of the
                        outstanding shares of Common Stock), any consolidation
                        or merger to which the Corporation is a party, any sale
                        or transfer of all or substantially all of the assets of
                        the Corporation, or any compulsory share exchange
                        whereby the Common Stock is converted into other
                        securities, cash or property; or

                  (E)   the Corporation shall authorize the voluntary or
                        involuntary dissolution, liquidation or winding-up of
                        the affairs of the Corporation;

then the Corporation shall cause to be filed at each office or agency maintained
for the purpose of conversion of Series A Preferred Stock, and shall cause to be
mailed and faxed to the Holders of Series A Preferred Stock at their last
addresses as it shall appear upon the Series A Preferred Stock Register, at
least thirty (30) calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, 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 dividend, distributions,
redemption, rights or warrants are to be determined, or (y) the date on which
such reclassification, consolidation, merger, sale, transfer, share exchange,
dissolution, liquidation or winding-up is expected to become effective, 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 or other
property deliverable upon such reclassification, consolidation, merger, sale,
transfer, share exchange, dissolution, liquidation or winding-up; provided,
however, that the failure to mail such notice or any defect therein or in the
mailing thereof shall not affect the validity of the corporate action required
to be specified in such notice.

            (d) If at any time conditions shall arise by reason of action or
inaction taken by the Corporation which in the opinion of the Board of Directors
are not adequately covered by the other provisions hereof and which might
materially and adversely affect the rights of the Holders of Series A Preferred
Stock (different than or distinguished from the effect generally on rights of
holders of any class of the Corporation's capital stock), the Corporation shall,
at least thirty (30) calendar days prior to the effective date of such action,
mail and fax a written notice to each Holder of Series A Preferred Stock briefly
describing the action contemplated and the material adverse effects of such
action on the rights of such Holders and an Appraiser selected by the Holders of
majority of the outstanding Series A Preferred Stock shall give its opinion as
to the adjustment, if any (not inconsistent with the standards established in

                                       9
<PAGE>

this Article IV), of the Fixed Conversion Price (including, if necessary, any
adjustment as to the securities into which Series A Preferred Stock may
thereafter be convertible) and any distribution which is or would be required to
preserve without diluting the rights of the Holders of Series A Preferred Stock;
provided, however, that the Corporation, after receipt of the determination by
such Appraiser, shall have the right to select an additional Appraiser, in which
case the adjustment shall be equal to the average of the adjustments recommended
by each such Appraiser. The Board of Directors shall make the adjustment
recommended forthwith upon the receipt of such opinion or opinions or the taking
of any such action contemplated, as the case may be; provided, however, that no
such adjustment of the Fixed Conversion Price shall be made which in the opinion
of the Appraiser(s) giving the aforesaid opinion or opinions would result in an
increase of the Fixed Conversion Price to more than the Fixed Conversion Price
then in effect.

            (e) The Corporation covenants that it will at all times reserve and
keep available out of its authorized and unissued Common Stock solely for the
purpose of issuance upon conversion of Series A Preferred Stock as herein
provided, free from preemptive rights or any other actual contingent purchase
rights of persons other than the Holders of Series A Preferred Stock, such
number of shares of Common Stock as shall be issuable (taking into account the
adjustments and restrictions of Section IV(c) and Section IV(d) hereof) upon the
conversion of the aggregate principal amount of all outstanding Series A
Preferred Stock. The Corporation covenants that all shares of Common Stock that
shall be so issuable shall, upon issue, be duly and validly authorized, issued
and fully paid and nonassessable.

            (f) No fractional shares of Common Stock shall be issuable upon a
conversion hereunder and the number of shares to be issued shall be rounded up
to the nearest whole share. If a fractional share interest arises upon any
conversion hereunder, the Corporation shall eliminate such fractional share
interest by issuing Holder an additional full share of Common Stock.

            (g) The issuance of certificates for shares of Common Stock on
conversion of Series A Preferred Stock shall be made without charge to the
Holder for any documentary stamp or similar taxes that may be payable in respect
of the issue or delivery of such certificate, provided that the Corporation
shall not be required to pay any tax that may be payable in respect of any
transfer involved in the issuance and delivery of any such certificate upon
conversion in a name other than that of the Holder and the Corporation shall not
be required to issue or deliver such certificates unless or until the person or
persons requesting the issuance thereof shall have paid to the Corporation the
amount of such tax or shall have established to the satisfaction of the
Corporation that such tax has been paid.

            (h) Series A Preferred Stock converted into Common Stock shall be
canceled upon conversion.

            (i) [Reserved]

            (j) Each Holder Notice of Conversion shall be given by facsimile to
the Escrow Agent no later than 4:00 pm New York Time. Upon receipt of such
Notice of Conversion, the Escrow Agent

                                       10
<PAGE>

shall forward such Notice of Conversion to the Corporation by facsimile by the
end of the Business Day, on which received, assuming received by 6:00 pm New
York Time and if thereafter on the next Business Day, at the facsimile telephone
number and address of the principal place of business of the Corporation. Each
Corporation Notice of Conversion shall be given by facsimile addressed to each
Holder of Series A Preferred Stock at the facsimile telephone number and address
of such Holder appearing on the books of the Corporation as provided to the
Corporation by such Holder for the purpose of such Corporation Notice of
Conversion, with a copy to the Escrow Agent. Any such notice shall be deemed
given and effective upon the transmission of such facsimile at the facsimile
telephone number specified in this Section IV(j) (with printed confirmation of
transmission). In the event that the Escrow Agent receives the Notice of
Conversion after 4:00 p.m. New York Time, the Conversion Date shall be deemed to
be the next Business Day. In the event that the Notice of Conversion is sent
after the end of the Business Day, notice will be deemed to have been given the
next Business Day.

                       V. EVENTS OF DEFAULT AND REMEDIES.

      I. "Event of Default", wherever used herein, means any one of the
following events:

            (a) the Corporation shall fail to observe or perform any material
covenant, agreement or warranty contained in this Series A Preferred Stock
Certificate of Designations, and such failure shall not have been remedied
within ten (10) Business Days after the date on which written notice of such
failure shall have been given;

            (b) the occurrence of any event or breach or default by the
Corporation under the Purchase Agreement or any other Transaction Document (as
defined in the Purchase Agreement) and such failure or breach shall not have
been remedied within ten (10) Business Days after the date on which written
notice of such failure or breach shall have been given by the Purchaser;

            (c) the Corporation or any of its subsidiaries shall commence a
voluntary case under the United States Bankruptcy Code as now or hereafter in
effect or any successor thereto (the "Bankruptcy Code"); or an involuntary case
is commenced against the Corporation under the Bankruptcy Code and the
Corporation fails to pursue dismissal of the case within sixty (60) days after
commencement of the case; or the Corporation commences any other proceeding
under any reorganization, arrangement, adjustment of debt, relief of debtors,
dissolution, insolvency or liquidation or similar law of any jurisdiction
whether now or hereafter in effect relating to the Corporation or there is
commenced against the Corporation any such proceeding and the Corporation fails
to pursue dismissal of the case within sixty (60) days after commencement of the
case; or the Corporation suffers any appointment of any custodian or the like
for it or any substantial part of its property and the Corporation fails to
pursue dismissal of the custodian within sixty (60) days after the appointment;
or the Corporation makes a general assignment for the benefit of creditors; or
any corporate or other action is taken by the Corporation for the purpose of
effecting any of the foregoing;

                                       11
<PAGE>

            (d) the Corporation shall voluntarily have its Common Stock deleted
or delisted, as the case may be, from the OTCBB or other national securities
exchange or market on which such Common Stock is listed for trading or suspended
from trading thereon, and shall not have its Common Stock relisted or have such
suspension lifted, as the case may be, within twenty (20) Trading Days of such
deletion or delisting;

            (e) notwithstanding anything herein to the contrary, the Corporation
shall fail to deliver to the Escrow Agent share certificates representing the
shares of Common Stock to be issued upon conversion of the Series A Preferred
Stock within ten (10) Business Days pursuant to written notice by the Escrow
Agent to the Corporation that additional shares are required in escrow pursuant
to Section 4.14 of the Purchase Agreement, Article 2 of the Escrow Agreement
(annexed as Exhibit D to the Purchase Agreement), and Section IV(b) of this
Series A Preferred Stock;

            (f) the Corporation shall issue a press release, or otherwise make
publicly known, that it is not honoring properly executed Holder Notice of
Conversions for any reason whatsoever;

            (g) the Registration Statement which is the subject of the
Registration Rights Agreement annexed as Exhibit C to the Purchase Agreement is
no longer effective as required under the Registration Rights Agreement and the
Corporation does not take action to cause such Registration Statement to become
effective within ten (10) Business Days of not being effective;

            (h) the Corporation shall issue or enter into an agreement to issue
any equity or equity equivalent security with a floating conversion price
substantially similar to the Series A Preferred Stock.

      II. (a) If any Event of Default occurs and continues, beyond any cure
period, if any, then so long as such Event of Default shall then be continuing
any Holder may, by notice to the Corporation demand redemption of the Shares of
Series A Preferred Stock, whereupon the Stated Value and all accrued but unpaid
Dividends immediately due and payable, and such Holder may immediately and
without expiration of any grace period enforce any and all of its rights and
remedies hereunder and all other remedies available to it under applicable law.
Such declaration may be rescinded and annulled by such Holder at any time prior
to payment hereunder. No such rescission or annulment shall affect any
subsequent Event of Default or impair any right consequent thereon. This shall
include, but not be limited to the right to temporary, preliminary and permanent
injunctive relief without the requirement of posting any bond or undertaking.

            (b) Such Holder may thereupon proceed to protect and enforce its
rights either by suit in equity, or by action at law, or by other appropriate
proceedings whether for the specific performance (to the extent permitted by
law) of any covenant or agreement contained in this Series A Preferred Stock
Certificate of Designations or in aid of the exercise of any power granted in
this Series A Preferred Stock Certificate of Designations, and proceed to
enforce the redemption of any of the Series A Preferred Stock held by it, and to
enforce any other legal or equitable right of such Holder.

                                       12
<PAGE>

            (c) As a non-exclusive remedy, in the Event of a Default, the Holder
can convert the outstanding shares of Series A Preferred Stock at the lesser of
the Fixed Conversion Price or the Floating Conversion Price upon giving a notice
of conversion to the Corporation. The Corporation shall not have the right to
object to the conversion or the calculation of the applicable Conversion Price,
and the Escrow Agent shall release the shares of Common Stock from escrow upon
notifying the Corporation of the conversion.

      III. To effectuate the terms and provision of this Series A Preferred
Stock, the Holder may send notice of any default to the Corporation's
attorney-in-fact (the "Attorney-in-Fact") as set forth herein and send a copy of
such notice to the Corporation and its counsel, simultaneously, and request the
Attorney-in-Fact, to comply with the terms of this Series A Preferred Stock and
Purchase Agreement and all agreements entered into pursuant to the Purchase
Agreement on behalf of the Corporation.

                                 VI. [Reserved]

                                   VII. RANK.

      The Series A Preferred Stock shall rank (i) prior to the Corporation's
Common Stock; (ii) prior to any class or series of capital stock of the
Corporation hereafter created that, by its terms, ranks junior to the Series A
Preferred Stock ("Junior Securities"); (iii) junior to any class or series of
capital stock of the Corporation hereafter created (with the consent of the
Holders of a majority of the outstanding Series A Preferred Stock obtained in
accordance with Article XIII hereof) specifically ranking, by its terms, senior
to the Series A Preferred Stock ("Senior Securities"); and (iv) Pari Passu with
any class or series of capital stock of the Corporation hereafter created (with
the consent of the Holders of a majority of the outstanding the Series A
Preferred Stock specifically ranking by its terms on parity with the Series A
Preferred Stock ("Pari Passu Securities"), in each case as to distribution of
assets upon liquidation, dissolution or winding up of the Corporation, whether
voluntary or involuntary.

                          VIII. LIQUIDATION PREFERENCE.

      If the Corporation shall commence a voluntary case under the U.S. Federal
bankruptcy laws or any other applicable bankruptcy, insolvency or similar law,
or consent to the entry of an order for relief in an involuntary case under any
law or to the appointment of a receiver, liquidator, assignee, custodian,
trustee, sequestrator (or other similar official) of the Corporation or of any
substantial part of its property, or make an assignment for the benefit of its
creditors, or admit in writing its inability to pay its debts generally as they
become due, or if a decree or order for relief in respect of the Corporation
shall be entered by a court having jurisdiction in the premises in an
involuntary case under the U.S. Federal bankruptcy laws or any other applicable
bankruptcy, insolvency or similar law resulting in the appointment of a
receiver, liquidator, assignee, custodian, trustee, sequestrator (or other
similar official) of the Corporation or of any substantial part of its property,
or ordering the winding up or liquidation of its affairs, and any such decree or
order shall be unstayed and in effect for a period of 60 consecutive days and,
on

                                       13
<PAGE>

account of any such event, the Corporation shall liquidate, dissolve or wind up,
or if the Corporation shall otherwise liquidate, dissolve or wind up, including,
but not limited to, the sale or transfer of all or substantially all of the
Corporation's assets in one transaction or in a series of related transactions
(a "Liquidation Event"), no distribution shall be made to the holders of any
shares of capital stock of the Corporation (other than Senior Securities and
Pari Passu Securities) upon liquidation, dissolution or winding up unless prior
thereto the Holders of shares of Series A Preferred Stock shall have received
the Liquidation Preference with respect to each share. If, upon the occurrence
of a Liquidation Event, the assets and funds available for distribution among
the Holders of the Series A Preferred Stock and Holders of Pari Passu Securities
shall be insufficient to permit the payment to such holders of the preferential
amounts payable thereon, then the entire assets and funds of the Corporation
legally available for distribution to the Series A Preferred Stock and the Pari
Passu Securities shall be distributed ratably among such shares in proportion to
the ratio that the Liquidation Preference payable on each such share bears to
the aggregate Liquidation Preference payable on all such shares. The purchase or
redemption by the Corporation of stock of any class, in any manner permitted by
law, shall not, for the purposes hereof, be regarded as a liquidation,
dissolution or winding up of the Corporation. Neither the consolidation or
merger of the Corporation with or into any other entity nor the sale or transfer
by the Corporation of less than substantially all of its assets shall, for the
purposes hereof, be deemed to be a liquidation, dissolution or winding up of the
Corporation. The "Liquidation Preference" with respect to a share of Series A
Preferred Stock means an amount equal to the Stated Value thereof, plus the
accrued but unpaid dividends thereon through the date of final distribution. The
Liquidation Preference with respect to any Pari Passu Securities shall be as set
forth in the Certificate of Designation filed in respect thereof.

                               IX. VOTING RIGHTS.

      The Holders of the Series A Preferred Stock have no voting power
whatsoever, except as otherwise provided by the Nevada General Corporation Law
(the "NGCL"). To the extent that under the NGCL the vote of the Holders of the
Series A Preferred Stock, voting separately as a class or series, as applicable,
is required to authorize a given action of the Corporation, the affirmative vote
or consent of the Holders of at least a majority of the then outstanding shares
of the Series A Preferred Stock represented at a duly held meeting at which a
quorum is present or by written consent of the Holders of at least a majority of
the then outstanding shares of Series A Preferred Stock (except as otherwise may
be required under the NGCL) shall constitute the approval of such action by the
class. To the extent that under the NGCL Holders of the Series A Preferred Stock
are entitled to vote on a matter with holders of Common Stock, voting together
as one class, each share of Series A Preferred Stock shall be entitled to a
number of votes equal to the number of shares of Common Stock into which it is
then convertible (subject to the limitations contained in Article IV.) using the
record date for the taking of such vote of shareholders as the date as of which
the Conversion Price is calculated.

                                X MISCELLANEOUS.

                                       14
<PAGE>

      (a) If any shares of Series A Preferred Stock are converted pursuant to
Article IV, the shares so converted shall be canceled, shall return to the
status of authorized, but unissued preferred stock of no designated series, and
shall not be issuable by the Corporation as Series A Preferred Stock.

      (b) Upon receipt by the Corporation of (i)evidence of the loss, theft,
destruction or mutilation of any Preferred Stock certificate(s) and (ii) (y) in
the case of loss, theft or destruction, of indemnity (without any bond or other
security) reasonably satisfactory to the Corporation, or (z) in the case of
mutilation, upon surrender and cancellation of the Preferred Stock
certificate(s), the Corporation shall execute and deliver new Preferred Stock
certificate(s) of like tenor and date. However, the Corporation shall not be
obligated to reissue such lost or stolen Preferred Stock certificate(s) if the
Holder contemporaneously requests the Corporation to convert such Series A
Preferred Stock.

      (f) Upon submission of a Notice of Conversion by a Holder of Series A
Preferred Stock, (i) the shares covered thereby shall be deemed converted into
shares of Common Stock and (ii) the Holder's rights as a Holder of such
converted shares of Series A Preferred Stock shall cease and terminate,
excepting only the right to receive certificates for such shares of Common Stock
and to any remedies provided herein or otherwise available at law or in equity
to such Holder because of a failure by the Corporation to comply with the terms
of this Certificate of Designation. Notwithstanding the foregoing, if a Holder
has not received certificates for all shares of Common Stock prior to the tenth
business day after the expiration of the Delivery Period with respect to a
conversion of Series A Preferred Stock for any reason, then (unless the Holder
otherwise elects to retain its status as a holder of Common Stock by so
notifying the Corporation within five business days after the expiration of such
10 business day period) the Holder shall regain the rights of a Holder of Series
A Preferred Stock with respect to such unconverted shares of Series A Preferred
Stock and the Corporation shall, as soon as practicable, return such unconverted
shares to the Holder. In all cases, the Holder shall retain all of its rights
and remedies for the Corporation's failure to convert Series A Preferred Stock.

      (g) The remedies provided in this Certificate of Designations shall be
cumulative and in addition to all other remedies available under this
Certificate of Designations, at law or in equity (including a decree of specific
performance and/or other injunctive relief), and nothing herein shall limit a
Holder's right to pursue actual damages for any failure by the Corporation to
comply with the terms of this Certificate of Designations. The Corporation
acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to the Holders of Series A Preferred Stock and that the remedy
at law for any such breach may be inadequate. The Corporation therefore agrees,
in the event of any such breach or threatened breach, that the Holders of Series
A Preferred Stock shall be entitled, in addition to all other available
remedies, to an injunction restraining any breach, without the necessity of
showing economic loss and without any bond or other security being required.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       15
<PAGE>

      IN WITNESS WHEREOF, this Certificate of Designation is executed on behalf
of the Corporation this ___ day of _________, 2000.

                                    A SURE ECOMMERCE, INC.

                                    By ______________________________
                                       Matthew Sebal, President &
                                        Chief Executive Officer

                                       16
<PAGE>

                                    EXHIBIT A

                              NOTICE OF CONVERSION
                            AT THE ELECTION OF HOLDER

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

Except as provided by Article IV of the Series A Preferred Stock Certificate of
Designations, the undersigned hereby irrevocably elects to convert the above
Series A Preferred Stock certificate number(s) _______________ into shares of
Common Stock, $0.001 par value per share (the "Common Stock"), of A Sure
eCommerce, Inc. (the "Corporation") according to the conditions hereof, as of
the date written below. If shares are to be issued in the name of a person other
than undersigned, the undersigned will pay all transfer taxes payable with
respect thereto and is delivering herewith such certificates and opinions as
reasonably requested by the Corporation in accordance therewith. A fee of $350
will be charged to the Holder for any conversion by the Escrow Agent. No other
fees will be charged to the Holder, except for such transfer taxes, if any.

Conversion calculations:       _________________________________________________
                               Date to Effect Conversion

                               _________________________________________________
                               Stated Value of Shares of Series A Preferred
                               Stock to be Converted

                               _________________________________________________
                               Applicable Conversion Price (Pursuant to
                               Article 4(c)(v))

                               _________________________________________________
                               Number of Shares to be Issued Upon Conversion

                               _________________________________________________
                               Signature

                               _________________________________________________
                               Name

                               _________________________________________________
                               Address

                                       17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}]]