Document:

<PAGE>

                                                                     Exhibit 4.1

                       AMENDMENT NO. 2 TO RIGHTS AGREEMENT

         This Amendment No. 2 ("Amendment No. 2") to that certain rights
agreement, dated as of September 25, 1995, as amended on June 17, 1998, by and
between Investors Financial Services Corp., a Delaware corporation (the
"Company"), and First Chicago Trust Company of New York, as rights agent (the
"Rights Agent") (as amended, the "Rights Agreement"), is made and entered into
as of this 15th day of August, 2000 by the Company and the Rights Agent.
Capitalized terms not defined herein shall have the respective meaning ascribed
to them in the Rights Agreement.

         In accordance with Section 27 (Supplements and Amendments) of the
Rights Agreement, the Company hereby amends the Rights Agreement as follows:

         1. Effective immediately, the Rights Agreement is hereby amended by
replacing Section 1(y) thereof in its entirety with the following:

                  "`INITIAL EXERCISE PRICE' shall be $540.00"

         2. Effective immediately, Exhibit B (Form of Rights Certificate) to the
Rights Agreement is hereby amended and restated in its entirety by EXHIBIT I
hereto.

         3. Effective immediately, Exhibit C (Summary of Rights to Purchase
Preferred Stock) to the Rights Agreement is hereby amended and restated in its
entirety by EXHIBIT II hereto.

         4. Except as specifically amended and set forth herein, the Rights
Agreement shall remain unchanged and in full force and effect in accordance with
its terms.

         5. By execution of this Amendment No. 2, the Company hereby certifies
to the Rights Agent that the amendments to the Rights Agreement reflected herein
comply with Section 27 (Supplements and Amendments) of the Rights Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2
to be executed and delivered as of the date first written above.

                                   INVESTORS FINANCIAL SERVICES CORP.

                                   By: /s/ Kevin J. Sheehan
                                       ----------------------------------
                                       Name: Kevin J. Sheehan
                                       Title: President, Chief Executive Officer
                                              and Chairman

                                   FIRST CHICAGO TRUST COMPANY OF
                                   NEW YORK

                                   By: /s/ Gerald J. O'Leary
                                       ----------------------------------
                                       Name: Gerald J. O'Leary
                                       Title: Managing Director
<PAGE>

                                                                       EXHIBIT I

                                                           EXHIBIT B

                          [FORM OF RIGHTS CERTIFICATE]

Certificate No. R-                                            __________ Rights

NOT EXERCISABLE AFTER AUGUST 15, 2005 OR EARLIER IF REDEEMED BY THE COMPANY. THE
RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $.01 PER
RIGHT ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN
CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON, AN ADVERSE
PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON OR AN ADVERSE PERSON
(AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF
SUCH RIGHTS MAY BECOME NULL AND VOID. [THE RIGHTS REPRESENTED BY THIS RIGHTS
CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN
ACQUIRING PERSON, AN ADVERSE PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING
PERSON OR ADVERSE PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT).
ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY
BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF SUCH
AGREEMENT.]*

                               Rights Certificate

                       INVESTORS FINANCIAL SERVICES CORP.

         This Rights Certificate certifies that _____________________, or
registered assigns, is the registered holder of the number of Rights set forth
above, each of which whole Right entitles the holder thereof, subject to the
terms, provisions and conditions of the Rights Agreement, dated as of September
25, 1995, and as subsequently amended on June 17, 1998 and August 15, 2000 (as
amended, the "Rights Agreement"), between Investors Financial Services Corp., a
Delaware corporation (the "Company"), and First Chicago Trust Company of New
York (the "Rights Agent"), to purchase from the Company after the Distribution
Date (as such term is defined in the Rights Agreement) and at any time prior to
the Expiration Date (as such term is defined in the Rights Agreement) at the
office or offices of the Rights Agent designated for such purpose, or its
successors as Rights Agent, _____________________

*  If applicable, insert this portion of the legend and delete preceding
   sentence.
<PAGE>

                                      -7-

one-hundredth of a fully paid, non-assessable share of Series A Junior
Participating Preferred Stock (the "Preferred Stock") of the Company, at a
purchase price of $540.00 per one one-hundredth of a share (the "Purchase
Price"), upon presentation and surrender of this Rights Certificate with the
Form of Election to Purchase and related Certificate duly executed. The number
of Rights evidenced by this Rights Certificate (and the number of shares which
may be purchased upon exercise thereof) set forth above, and the Purchase Price
per share set forth above, are the number and Purchase Price as of [the Record
Date] based on the Preferred Stock as constituted at such date. The Company
reserves the right to require prior to the occurrence of a Triggering Event (as
such term is defined in the Rights Agreement) that a number of Rights be
exercised so that only whole shares of Preferred Stock will be issued.

         Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in the Rights Agreement.

         Upon the occurrence of a Section 11(a)(ii) Event, if the Rights
evidenced by this Rights Certificate are beneficially owned by (i) an Acquiring
Person, an Adverse Person or an Affiliate or Associate of an Acquiring Person or
Adverse Person, (ii) a transferee of an Acquiring Person or an Adverse Person
(or of any such Associate or Affiliate of an Acquiring Person or an Adverse
Person), or (iii) under certain circumstances specified in the Rights Agreement,
a transferee of a person who, after such transfer, became an Acquiring Person or
an Adverse Person (or an Associate or Affiliate of an Acquiring Person or an
Adverse Person), such Rights shall become null and void and no holder hereof
shall have any right with respect to such Rights from and after the occurrence
of such Section 11(a)(ii) Event.

         As provided in the Rights Agreement, the Purchase Price and the number
and kind of shares of Preferred Stock or other securities which may be purchased
upon the exercise of the Rights evidenced by this Rights Certificate are subject
to modification and adjustment upon the happening of certain events, including
Triggering Events.

         This Rights Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Rights Certificates, which
limitations of rights include the temporary suspension of the exercisability of
such Rights under the specific circumstances set forth in the Rights Agreement.
Copies of the Rights Agreement are on file at the office of the Company and are
also available upon written request to the Company.

         This Rights Certificate, with or without other Rights Certificates,
upon surrender at the principal office or offices of the Rights Agent designated
for such purpose, may be exchanged for another Rights Certificate or Rights
Certificates of like tenor and date evidencing Rights entitling the holder to
purchase a like aggregate number of one one-hundredths of a share of Preferred
Stock as the Rights evidenced by the Rights Certificate or Rights Certificates
surrendered shall have entitled such holder to purchase. If this Rights
Certificate shall be
<PAGE>

                                      -8-

exercised in part, the holder shall be entitled to receive upon surrender hereof
another Rights Certificate or Rights Certificates for the number of whole Rights
not exercised.

         Subject to the provisions of the Rights Agreement, the Rights evidenced
by this Certificate may be redeemed by the Company at its option at a redemption
price of $.01 per Right (such number reflecting the stock splits in the form of
a dividend effected by the Company in March 1999 and June 2000) at any time
prior to the earlier of (i) the close of business on the tenth day following the
Stock Acquisition Date (or, if the Stock Acquisition Date shall have occurred
prior to the Record Date, the close of business on the tenth day following the
Record Date), and (ii) the Final Expiration Date. After the expiration of the
redemption period, the Company's right of redemption may be reinstated if an
Acquiring Person reduces his beneficial ownership to 15% or less of the
outstanding shares of Common Stock in a transaction or series of transactions
not involving the Company.

         No fractional shares of Preferred Stock will be issued upon the
exercise of any Right or Rights evidenced hereby (other than fractions which are
integral-multiples of one one-hundredth of a share of Preferred Stock), but in
lieu thereof a cash payment will be made, as provided in the Rights Agreement.

         No holder of this Rights Certificate shall be entitled to vote or
receive dividends or be deemed for any purpose the holder of shares of Preferred
Stock or of any other securities of the Company which may at any time be
issuable on the exercise hereof, nor shall anything contained in the Rights
Agreement or herein be construed to confer upon the holder hereof, as such, any
of the rights of a stockholder of the Company or any right to vote for the
election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporate action, or, to
receive notice of meetings or other actions affecting stockholders (except as
provided in the Rights Agreement), or to receive dividends or subscription
rights, or otherwise, until the Right or Rights evidenced by this Rights
Certificate shall have been exercised as provided in the Rights Agreement.

         This Rights Certificate shall not be valid or obligatory for any
purpose until it shall have been countersigned by the Rights Agent.
<PAGE>

                                      -9-

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal by its authorized officers.

Dated:

ATTEST:                                  INVESTORS FINANCIAL SERVICES CORP.

__________________________               By:___________________________
Secretary                                   Kevin J. Sheehan
                                            President and Chief
                                            Executive Officer

Countersigned:

By:________________________
    Authorized Signature
<PAGE>

                  [Form of Reverse Side of Rights Certificate]

                               FORM OF ASSIGNMENT

                (To be executed by the registered holder if such
               holder desires to transfer the Rights Certificate.)

FOR VALUE RECEIVED ________________________________________________________
hereby sells, assigns and transfers unto
___________________________________________________________________________
___________________________________________________________________________
                  (Please print name and address of transferee)

this Rights Certificate, together with all right, title and interest therein,
and does hereby irrevocably constitute and appoint Attorney, to transfer the
within Rights Certificate on the books of the within-named Company, with full
power of substitution.

Dated:

                                           ___________________________
                                           Signature

Signature Guaranteed:
<PAGE>

                                      -2-

                                   CERTIFICATE

         The undersigned hereby certifies by checking the appropriate boxes
that:

         (1) this Rights Certificate [ ] is [ ] is not being sold, assigned and
transferred by or on behalf of a Person who is or was an Acquiring Person, an
Adverse Person or an Affiliate or Associate of an Acquiring Person or an Adverse
Person (as such terms are defined in the Rights Agreement);

         (2) after due inquiry and to the best knowledge of the undersigned, it
[ ] did [ ] did not acquire the Rights evidenced by this Rights Certificate from
any Person who is, was or subsequently became an Acquiring Person, an Adverse
Person or an Affiliate or Associate of an Acquiring Person or an Adverse Person.

Dated:

                                      _________________________________
                                      Signature

Signature Guaranteed:

                                     NOTICE

         The signature to the foregoing Assignment and Certificate must
correspond to the name as written upon the face of this Rights Certificate in
every particular, without alteration or enlargement or any change whatsoever.
<PAGE>

                          FORM OF ELECTION TO PURCHASE

                      (To be executed if holder desires to
                       exercise Rights represented by the
                              Rights Certificate.)

To:  INVESTORS FINANCIAL SERVICES CORP.:

         The undersigned hereby irrevocably elects to exercise ______ Rights
represented by this Rights Certificate to purchase the shares of Preferred Stock
issuable upon the exercise of the Rights (or such other securities of the
Company or of any other person which may be issuable upon the exercise of the
Rights) and requests that certificates for such shares be issued in the name of
and delivered to:

Please insert social security
or other identifying number

___________________________________________________________________________

___________________________________________________________________________
                         (Please print name and address)

         If such number of Rights shall not be all the Rights evidenced by this
Rights Certificate, a new Rights Certificate for the balance of such Rights
shall be registered in the name of and delivered to:

Please insert social security
or other identifying number

___________________________________________________________________________

___________________________________________________________________________
                         (Please print name and address)

Dated:

                                    ______________________________
                                    Signature

Signature Guaranteed:
<PAGE>

                                      -4-

                                   CERTIFICATE

         The undersigned hereby certifies by checking the appropriate boxes
that:

         (1) the Rights evidenced by this Rights Certificate [ ] are [ ] are not
being exercised by or on behalf of a Person who is or was an Acquiring Person,
an Adverse Person or an Affiliate or Associate of an Acquiring Person or an
Adverse Person (as such terms are defined in the Rights Agreement);

         (2) after due inquiry and to the best knowledge of the undersigned, it
[ ] did [ ] did not acquire the Rights evidenced by this Rights Certificate from
any Person who is, was or subsequently became an Acquiring Person, an Adverse
Person or an Affiliate or Associate of an Acquiring Person or an Adverse Person.

Dated:

                                     ______________________________
                                     Signature

Signature Guaranteed:

                                     NOTICE

         The signature to the foregoing Election to Purchase and Certificate
must correspond to the name as written upon the face of this Rights Certificate
in every particular, without alteration or enlargement or any change whatsoever.
<PAGE>

                                      -5-

                                                                      EXHIBIT II

                                                            EXHIBIT C

                  SUMMARY OF RIGHTS TO PURCHASE PREFERRED STOCK

      On August 15, 1995, the Board of Directors of Investors Financial Services
Corp. (the "Company") declared a dividend of one preferred stock purchase right
(a "Right") for each outstanding share of the Company's Common Stock and Class A
Stock (all issued and outstanding shares of which were converted on September
19, 1997 to shares of Common Stock) to stockholders of record at the close of
business on the day preceding the date on which the Company acquired all the
issued and outstanding capital stock of Investors Bank & Trust Company in
exchange for Common Stock (the "Record Date"). Giving effect to the two stock
splits in the form of a dividend completed by the Company in March 1999 and June
2000, respectively, each share of Common Stock now trades with one-quarter of a
Right attached to it. Each whole Right entitles the registered holder to
purchase from the Company a unit consisting of one one-hundredth of a share (a
"Unit") of Series A Junior Participating Preferred Stock, $.01 par value per
share (the "Preferred Stock"), at a purchase price of $540 per Unit (the
"Purchase Price"), subject to adjustment. The description and terms of the
Rights are set forth in a Rights Agreement, dated September 25, 1995, and as
subsequently amended on June 17, 1998 by Amendment No. 1 and on August 15, 2000
by Amendment No. 2 thereto (as amended, the "Rights Agreement") between the
Company and First Chicago Trust Company of New York, as Rights Agent.

      The Rights are attached to all Common Stock certificates representing
shares then outstanding, and no separate Rights Certificates have been
distributed as of the date hereof. The Rights will separate from the Common
Stock and a Distribution Date will occur upon the earlier of (i) 10 days
following a public announcement by the Company or any Person that such Person or
group of affiliated or associated Persons, other than the Company, any
Subsidiary of the Company, or any Person or entity organized, appointed or
established by the Company for or pursuant to the terms of the Company's benefit
plan (an "Acquiring Person") has acquired, or obtained the right to acquire,
beneficial ownership of more than 15% of the outstanding shares of Common Stock
(the "Stock Acquisition Date"), (ii) 10 business days following the commencement
of a tender offer or exchange offer that may result in a person or group, other
than the Company, any Subsidiary of the Company, or any Person or entity
organized, appointed or established by the Company for or pursuant to the terms
of such plan, beneficially owning 15% or more of such outstanding shares of
Common Stock, or (iii) 10 business days following an Adverse Person Event (as
defined below).

      Until the Distribution Date (or earlier redemption or expiration of the
Rights), (i) the Rights will be evidenced by the Common Stock certificates and
will be transferred with and only with such Common Stock certificates, (ii) new
Common Stock certificates issued after the Record Date will contain a notation
incorporating the Rights Agreement by reference and (iii) the
<PAGE>

                                      -6-

surrender for transfer of any certificates for Common Stock outstanding, even
without such notation, will also constitute the transfer of the Rights
associated with the Common Stock represented by such certificate. Pursuant to
the Rights Agreement, the Company reserves the right to require prior to the
occurrence of a Triggering Event (as defined below) that, upon any exercise of
Rights, a number of Rights may be exercised so that only whole shares of
Preferred Stock will be issued.

      The Rights are not exercisable until the Distribution Date and will expire
at the Close of Business on August 15, 2005, unless earlier redeemed by the
Company as described below.

      As soon as practicable after the Distribution Date, separate certificates
evidencing the Rights ("Rights Certificates") will be mailed to holders of
record of the Common Stock as of the close of business on the Distribution Date
and, thereafter, such separate Rights Certificates alone will represent the
Rights. Except as otherwise determined by the Board of Directors and except in
connection with shares of Common Stock issued upon the exercise of employee
stock options, issuances under other employee stock benefit plans or upon the
conversion of convertible securities issued hereafter, only shares of Common
Stock issued prior to the Distribution Date will be issued with Rights.

      If at any time following the Distribution Date, (i) the Company is the
surviving corporation in a merger with an Acquiring Person and its Common Stock
is not changed or exchanged, (ii) 10 business days after a Person or group of
affiliated or associated Persons other than the Company or its affiliates and
associates acquires beneficial ownership of 20% of the outstanding Common Stock
of the Company (except pursuant to an offer for all outstanding shares of Common
Stock which the Independent Directors determine to be fair to, and otherwise in
the best interests of, the Company and its stockholders), (iii) an Acquiring
Person engages in one or more "self-dealing" transactions as set forth in the
Rights Agreement, (iv) during such time as there is an Acquiring Person, an
event occurs which results in such Acquiring Person's ownership interest being
increased by more than 1% (E.G., a reverse stock split), or (v) 10 business days
after the Directors of the Company shall declare any Person to be an Adverse
Person, upon a determination that such Person, alone or together with its
affiliates and associates, has become the Beneficial Owner of an amount of
Common Stock which the Directors determine to be substantial (which amount shall
in no event be less than 10% of the shares of Common Stock then outstanding) and
a majority of the Directors (with the concurrence of a majority of the
Independent Directors (as defined below)) determines, after reasonable inquiry
and investigation, including consultation with such persons as such directors
shall deem appropriate, that (a) such beneficial ownership by such person is
intended to cause the Company to repurchase the Common Stock beneficially owned
by such person or to cause pressure on the Company to take action or enter into
a transaction or series of transactions intended to provide such person with
short-term financial gain under circumstances where such directors determine
that the best long-term interests of the Company and its stockholders would not
be served by taking such action or entering into such transaction or series of
transactions at that time or (b) such beneficial ownership is causing or is
reasonably likely to cause a material adverse impact on the business or prospect
of the Company (including, but not limited to, impairment of relationships with
customers, impairment of the Company's ability to maintain its competitive
<PAGE>

                                      -7-

position or impairment of the Company's business reputation or ability to deal
with government agencies or meet regulatory requirements an "Adverse Person
Event").

      Then, each holder of a Right will thereafter have the right to receive,
upon exercise, that number of shares of Common Stock (or, in certain
circumstances, cash, property or other securities of the Company) which equals
the exercise price of the Right divided by 50% of the current market price (as
defined in the Rights Agreement) of the Common Stock at the date of the
occurrence of the event. However, Rights are not exercisable following the
occurrence of any of the events set forth above until such time as the Rights
are no longer redeemable by the Company as set forth below. Notwithstanding any
of the foregoing, following the occurrence of any of the events set forth in the
above paragraph, all Rights that are, or (under certain circumstances specified
in the Rights Agreement) were, beneficially owned by an Acquiring Person or an
Adverse Person will be null and void. The events set forth in the above
paragraph are referred to as "Section 11(a)(ii) Events."

      For example, at an exercise price of $540 per whole Right, each whole
Right not owned by an Acquiring Person or an Adverse Person (or by certain
related parties) following an event set forth in the preceding paragraph would
entitle its holder to purchase $1,080 worth of Common Stock (or other
consideration, as noted above) for $540. Assuming that the Common Stock has a
per share value of $30 at such time, the holder of each valid whole Right would
be entitled to purchase 36 shares of Common Stock for $540.

      In the event that, at any time following the Stock Acquisition Date, (i)
the Company is acquired in a merger or other business combination transaction in
which the Company is not the surviving corporation (other than a merger which
follows an offer determined by the Board of Directors to be fair as described in
clause (ii) of the second preceding paragraph), or (ii) more than 50% of the
Company's assets or earning power is sold or transferred, each holder of a Right
(except Rights which previously have been voided as set forth above) shall
thereafter have the right to receive, upon exercise, that number of shares of
common stock of the acquiring company which equals the exercise price of the
Right divided by one-half of the current market price (as defined in the Rights
Agreement) of such common stock at the date of the occurrence of the event. The
events set forth in this paragraph and in the third preceding paragraph are
referred to as the "Triggering Events."

      At any time after the occurrence of a Section 11(a)(ii) Event, a majority
of the Directors may exchange the Rights (other than Rights owned by an
Acquiring Person or Adverse Person which have become void), in whole or in part,
at an exchange ratio of four shares of Common Stock, or four Common Stock
Equivalents (as defined in the Rights Agreement), per whole Right (subject to
adjustment).

      The Purchase Price payable, and the number of Units of Preferred Stock or
other securities or property issuable, upon exercise of the Rights are subject
to adjustment from time to time to prevent dilution (i) in the event of a stock
dividend on, or a subdivision, combination or reclassification of, the Preferred
Stock, (ii) if holders of the Preferred Stock are granted certain rights or
warrants to subscribe for Preferred Stock or convertible securities at less than
the
<PAGE>

                                      -8-

current market price of the Preferred Stock, or (iii) upon the distribution to
holders of the Preferred Stock of evidences of indebtedness or assets (excluding
regular quarterly cash dividends) or of subscription rights or warrants (other
than those referred to above).

      With certain exceptions, no adjustment in the Purchase Price will be
required until cumulative adjustments amount to at least 1% of the Purchase
Price. No fractional Units will be issued and, in lieu thereof, an adjustment in
cash will be made based on the market price of the Preferred Stock on the last
trading date prior to the date of exercise.

      In general, the Company may redeem the Rights in whole, but not in part,
at any time until ten days following the Stock Acquisition Date, at a price of
$.01 per Right (payable in cash, Common Stock or other consideration deemed
appropriate by the Board of Directors). Under certain circumstances set forth in
the Rights Agreement, the decision to redeem shall require the concurrence of a
majority of the Directors. The Company may not redeem the Rights if the
Directors have previously declared a person to be an Adverse Person. After the
redemption period has expired, the Company's right of redemption may be
reinstated if either (i) an Acquiring Person reduces its beneficial ownership to
less than 15% of the outstanding shares of Common Stock in a transaction or a
series of transactions not involving the Company, or (ii) the Board of Directors
approves the merger of the Company with, or acquisition of the Company by, a
Person unrelated to the Acquiring Person. Immediately upon the action of the
Board of Directors ordering redemption of the Rights, with, where required, the
concurrence of the Directors, the Rights will terminate and the only right of
the holders of Rights will be to receive the $.01 per Right redemption price.

      The term "Independent Directors" means Directors who are not officers of
the Company.

      Until a Right is exercised, the holder thereof, as such, will have no
rights as a stockholder of the Company, including, without limitation, the right
to vote or to receive dividends. While the distribution of the Rights will not
be taxable to stockholders or to the Company, stockholders may, depending upon
the circumstances, recognize taxable income in the event that the Rights become
exercisable for Common Stock (or other consideration) of the Company or for
common stock of the acquiring company as set forth above.

      Other than those provisions relating to the principal economic terms of
the Rights, any of the provisions of the Rights Agreement may be amended by the
Board of Directors of the Company prior to the earlier to occur of the
determination that a person is an Adverse Person or the Distribution Date. After
the earlier of such events, the provisions of the Rights Agreement may be
amended by the Board of Directors (in certain circumstances, with the
concurrence of the Directors) in order to cure any ambiguity, to make changes
which do not adversely affect the interests of holders of Rights (excluding the
interests of any Acquiring Person or any Adverse Person), or to shorten or
lengthen any time period under the Rights Agreement; PROVIDED, HOWEVER, that no
amendment to adjust the time period governing redemption shall be made at such
time as the Rights are not redeemable.
<PAGE>

                                      -9-

      A copy of the Rights Agreement is available free of charge from the
Company. This summary description of the Rights does not purport to be complete
and is qualified in its entirety by reference to the Rights Agreement, which is
incorporated herein by reference.<PAGE>

Exhibit 10.1

                                       EXHIBIT A

                                  CREDIT AGREEMENT

       THIS CREDIT AGREEMENT  (this "AGREEMENT") is entered into as of the 29th
day of April 2000 by and among USIP.com, Inc., INC., a Utah corporation (the
"Company"), and Lilly Beter Capital Group, (the "LENDER").

                                 W I T N E S S E T H:

       1.     The Company has requested that the Lender provide the Company with
a credit facility.

       2.     The Lender is willing to provide such a facility of up to $200,000
to the Company upon the terms and subject to the conditions hereinafter set
forth.

       NOW, THEREFORE, in consideration of the mutual promises herein
contained and for other valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

1.     DEFINITION OF TERMS

1.1    DEFINITIONS.  As used in this Agreement, all exhibits hereto and in any
note, certificate, report, or other Loan Documents made or delivered pursuant to
this Agreement, the following terms have the respective meanings assigned to
them in this SECTION 1 or in the SECTION or recital referred to below:

"ADVANCE" means the disbursement by the Lender of a sum or sums lent to the
Company pursuant to this Agreement.

"ADVANCE DATE" has the meaning set forth in SECTION 2.2(a).

"AGREEMENT" means this Credit Agreement, including the EXHIBITS hereto, as the
same may be terminated, cancelled, renewed, extended, amended, or modified from
time-to-time

"EVENT OF DEFAULT" has the meaning set forth in SECTION 3.1.

"GAAP" means those generally accepted accounting principles and practices,
applied on a consistent basis, which are recognized as such by the American
Institute of Certified Public Accountants acting through its Accounting
Principles Board and the Financial Accounting Standards Board and/or their
respective successors and which are applicable in the circumstances as of the
date in question.

"LOAN DOCUMENTS" means this Agreement, the Note and any agreements, documents
(and with respect to this Agreement, and such other agreements and documents,
any renewals, extensions, amendments, or supplements thereto), or certificates
at any time executed or delivered pursuant to the terms of this Agreement.

"NOTE" means the Credit Note executed by the Company and delivered pursuant to
the terms of this Agreement, a form of which is attached hereto as EXHIBIT A,
together with any renewals, extensions, or modifications thereof.

"NOTICE OF BORROWING" means a notice substantially in the form of EXHIBIT B
attached hereto.

                                      12
<PAGE>

"OBLIGATIONS" means all present and future indebtedness, obligations, and
liabilities of every type and description of the Company at any time arising
under or in connection with this Agreement or any other Loan Document due or to
become due to the Lender or any other Person and shall include (i) all liability
for principal of and interest (including post-petition interest on the Principal
Debt) and (ii) all liability under the Loan Documents for any additional
interest, fees, taxes, compensation, costs, losses, expense reimbursements and
indemnification.

"PERSON" shall include an individual, agent, corporation, joint venture, general
or limited partnership, trust, unincorporated organization, or government, or
any agency or political subdivision thereof.

"PRINCIPAL DEBT" means, as of any date, the sum of the outstanding principal
balance of all outstanding Advances hereunder as of such date.

"CREDIT COMMITMENT" means up to $200,000, as the same may be decreased by the
Company pursuant to SECTION 2.1 or terminated by the Lender, at Lender's sole
discretion, or pursuant to SECTION 3.2.

"TERMINATION DATE" means whenever the Lender, chooses to terminate any or all
funding.

"UNUSED COMMITMENT" means, as of any date, (a) the Credit Commitment, MINUS (b)
the Principal Debt.

1.2    ACCOUNTING TERMS.  As used in this Agreement, and in any certificate,
report, or other document made or delivered pursuant to this Agreement,
accounting terms not defined in SECTION 1.1, and accounting terms partly defined
in SECTION 1.1 to the extent not defined, have, as of any date, the respective
meanings given to them under GAAP and all references to balance sheets or other
financial statements means such statements, prepared in accordance with GAAP as
of such date.

1.3    RULES OF CONSTRUCTION.  When used in this Agreement:  (a) "OR" is not
exclusive; (b) a reference to a law includes any amendment or modification to
such law; (c) a reference to a Person includes its permitted successors and
permitted assigns; (d) except as provided otherwise, all references to the
singular shall include the plural and VICE VERSA; (e) except as provided in this
Agreement, a reference to an agreement, instrument, or document shall include
such agreement, instrument, or document as the same may be amended, modified,
renewed, extended, restated, or supplemented from time to time in accordance
with its terms and as permitted by the Loan Documents; (f) all references to
SECTIONS or EXHIBITS shall be to Sections or Exhibits of this Agreement, unless
otherwise indicated; (g) all EXHIBITS to this Agreement shall be incorporated
into this Agreement; (h) the words "INCLUDE," "INCLUDES," and "INCLUDING" shall
be deemed to be followed by the phrase "WITHOUT LIMITATION;" and (i) except as
otherwise provided herein, in the computation of time from a specified date to a
later specified date, the word "FROM" means "FROM AND INCLUDING" and words "TO"
and "UNTIL" each mean "to but excluding."

2.     THE CREDIT LOAN

2.1    THE CREDIT COMMITMENT.  Subject to the terms and conditions of this
       Agreement, the Lender agrees to extend to the Company, from the date
       hereof through the Termination Date, a line of credit, which shall not
       exceed at any one time outstanding the then-current Credit Commitment.
       The Lender shall have the right to approve each and every Advance request
       subject to the status of the Company. The Lender may terminate this
       Agreement, and all funding at any time for any reason without notice to
       the Company.

2.2    MANNER OF BORROWING.

              (a)    NOTICE OF BORROWING.  The Company may request an Advance by
       submitting to Lender a Notice of Borrowing (in writing or by telephone
       followed by written notice within one (1) business day), which is
       irrevocable and binding on the Company.  Each Notice of Borrowing

                                      13
<PAGE>

       must be received by the Lender no later than 10:00 a.m. (Eastern
       Standard Time) on the fifth (5th) business day before the date on
       which funds are requested (the "ADVANCE DATE").

              (b)    ADVANCES.  The obligation of the Lender to make any
       Advance under this Agreement (including the initial Advance) shall be
       subject to the conditions precedent that, as of the date of such Advance
       and after giving effect thereto,  (i) there exists no Event of Default;
       and (ii) the Lender shall have timely received from the Company a Notice
       of Borrowing, and all of the statements contained in such Notice of
       Borrowing shall be true and correct; and (iii) that Lender has not
       disapproved an advance or has not  terminated the funding.

              (c)    FUNDING.  Subject to approval by Lender, and the terms and
       conditions in this Agreement, by not later than 2:00 p.m., Eastern
       Standard time, on the date specified as an Advance Date, the Lender shall
       make available the amount of such Advance under the Credit Commitment in
       immediately available funds.

              (d)     Lender shall not be obligated to make any advance to the
       Company if Lender or its agent has not approved the advance, or if Lender
       has terminated this Agreement.

2.3    NOTE.  The Principal Debt shall be evidenced by the Note in form and
substance satisfactory to the Lender executed by the Company, which Note shall
be (a) dated the date hereof, (b) in the amount of up to $200,000, and
(c) payable to the order of the Lender.

2.4    INTEREST AND PRINCIPAL PAYMENTS.

       (a)    INTEREST RATE, PAYMENT OF INTEREST AND CALCULATION.  The Company
       promises to pay interest on the Principal Debt outstanding from time to
       time at the rate of ten percent (10%) per annum (the "INTEREST RATE") or,
       if less, the maximum rate permitted by applicable law.  Past due amounts
       (including interest, to the extent permitted by law will also accrue
       interest at the Interest Rate or, if less, the maximum rate permitted by
       applicable law, and will be payable on demand.  Interest on the Principal
       Debt will be calculated on the basis of a 360-day year of twelve 30-day
       months.  The Company will pay interest in arrears, on the Termination
       Date or shall be declared to be or shall automatically become due and
       payable, on the principal sum hereof outstanding, from the most recent
       date to which interest has been paid on the Principal Debt, or if no
       interest has been paid on the Principal Debt from the date of this
       Agreement until payment in full of the Principal Debt has been made.

       (b)    PRINCIPAL PAYMENTS.  The unpaid Principal Debt together with all
       accrued interest thereon shall be due and payable on the Termination
       Date.

       (c)    OPTIONAL PREPAYMENTS.  The Company shall have the right, from
       time-to-time, to prepay the unpaid Principal Debt or accrued interest, in
       whole or in part, without premium or penalty.

2.5    MANNER AND APPLICATION OF PAYMENTS.  All payments and prepayments by the
Company on account of principal, interest, and fees hereunder shall be made in
immediately available funds.  All such payments shall be made to the Lender at
its principal office specified in the Note, not later than 12:00 noon, Eastern
Standard time, on the date due and funds received after that hour shall be
deemed to have been received by the Lender on the next following business day.
If any payment is scheduled to become due and payable on a day which is not a
business day, then such payment shall instead become due and payable on the
immediately following business day and interest on the principal portion of such
payment shall be payable at the then applicable rate during such extension.  All
payments made on the Note shall be applied first to accrued interest and then to
principal (in the inverse order of maturity in the case of prepayments).

2.6    DEFAULT RATE.  If permitted by law, all past-due principal of and accrued
       interest on the Note bears interest from maturity (stated or by
       acceleration) at fourteen percent (14%) per annum, or, if less,

                                   14
<PAGE>

       the maximum rate permitted by applicable law, until paid, regardless
       whether payment is made before or after entry of a judgment.

3.     EVENTS OF DEFAULT

3.1    EVENTS OF DEFAULT.  An "EVENT OF DEFAULT" shall exist if any one or more
of the following events (herein collectively called "EVENTS OF DEFAULT") shall
occur and be continuing:

              (a)    the Company shall fail to pay the amount due to the Lender
       at the Termination Date,

              (b)    the Company shall (i) apply for or consent to the
       appointment of a receiver, trustee, custodian, intervenor, or liquidator
       of itself or of all or a substantial part of its assets, (ii) file a
       voluntary petition in bankruptcy, admit in writing that it is unable to
       pay its debts as they become due, or generally not pay such debts as they
       become due, (iii) make a general assignment for the benefit of creditors,
       (iv) file a petition or answer seeking reorganization of an arrangement
       with creditors or to take advantage of any bankruptcy or insolvency laws,
       (v) file an answer admitting the material allegations of, or consent to,
       or default in answering, a petition filed against it in any bankruptcy,
       reorganization, or insolvency proceeding, or (vi) take corporate or
       partnership action for the purpose of effecting any of the foregoing; or

              (c)    an involuntary proceeding shall be commenced against the
       Company seeking bankruptcy or reorganization of the Company or the
       appointment of a receiver, custodian, trustee, liquidator, or other
       similar official or all or substantially all of such its assets, and such
       proceeding shall not have been dismissed within sixty (60) days of the
       filing thereof; or an order, order for relief, judgment, or decree shall
       be entered by any court of competent jurisdiction or other competent
       authority approving a petition or complaint seeking reorganization of any
       Company or appointing a receiver, custodian, trustee, liquidator, or
       other similar official, or of all or substantially all of its assets.

3.2    REMEDIES UPON EVENT OF DEFAULT.  If any Event of Default shall occur and
be continuing, then the Lender may, without notice, exercise any one or more of
the following rights and remedies, and any other remedies provided in any of the
Loan Documents, as the Lender in its sole discretion may deem necessary or
appropriate: (a) terminate the Lender's commitment to lend hereunder,
(b) declare the Obligations or any part thereof to be forthwith due and payable,
whereupon the same shall forthwith become due and payable without presentment,
demand, protest, notice of default, notice of acceleration or of intention to
accelerate, or other notice of any kind, all of which the Company hereby
expressly waives, anything contained herein or in the Note to the contrary
notwithstanding, (c) reduce any claim to judgment, or (d) without notice of
default or demand, pursue and enforce any of the Lender's rights and remedies
under the Loan Documents, or otherwise provided under or pursuant to any
applicable law or agreement; PROVIDED, HOWEVER, if any Event of Default
specified in SECTIONS 3.1(b) or (c) shall occur, then the Obligations shall
thereupon become due and payable concurrently therewith, and the Lender's
obligation to lend shall immediately terminate hereunder, without any further
action by the Lender and without presentment, demand, protest, notice of
default, notice of acceleration or of intention to accelerate, or other notice
of any kind, all of which the Company hereby expressly waives.

3.3    ORDER OF APPLICATION.

       (a)    NO DEFAULT.  If no Event of Default exists, then except as
       specifically provided in the Loan Documents, any payments shall be
       applied to the Obligations in the order and manner as set forth in
       SECTION 2.5.

       (b)    DEFAULT.  If an Event of Default exists, then any payment
       (including proceeds from the exercise of any rights and remedies in the
       Collateral) shall be applied in the following order:

                                      15
<PAGE>

              (i)    to all fees and expenses which the Lender has not been paid
              or reimbursed in accordance with the Loan Documents;

              (ii)   to accrued interest on the Principal Debt; and

              (iii)  to the remaining Obligations in the order and manner as the
              Lender deems appropriate.

4.     MISCELLANEOUS

4.1    NOTICES.  Any communications required or permitted to be given by any of
the Loan Documents must be (a) in writing and personally delivered or mailed by
prepaid certified or registered mail, or (b) made by facsimile transmission
delivered or transmitted, to the party to whom such notice of communication is
directed, to the address of such party shown opposite its name on the signature
pages hereof.  Any such communication shall be deemed to have been given
(whether actually received or not) on the day it is personally delivered or, if
transmitted by facsimile transmission, on the day that such communication is
transmitted as aforesaid subject to telephone confirmation of receipt; PROVIDED,
HOWEVER, that any notice received by Lender after 10:00 a.m. Eastern Standard
time on any day from the Company pursuant to SECTION 2.2 shall be deemed for the
purposes of such SECTION to have been given by the Company on the next
succeeding day, or if mailed, on the third (3rd) day after it is marked as
aforesaid.  Any party may change its address for purposes of this Agreement by
giving notice of such change to the other parties pursuant to this SECTION 4.1.

4.2    GOVERNING LAW.  THIS AGREEMENT HAS BEEN PREPARED, IS BEING EXECUTED AND
DELIVERED, AND IS INTENDED TO BE PERFORMED IN THE STATE OF FLORIDA AND THE
SUBSTANTIVE LAWS OF SUCH STATE SHALL GOVERN THE VALIDITY, CONSTRUCTION,
ENFORCEMENT, AND INTERPRETATION OF THIS AGREEMENT AND ALL OF THE OTHER LOAN
DOCUMENTS.

4.3    CHOICE OF FORUM; CONSENT TO SERVICE OF PROCESS AND JURISDICTION.  Any
suit, action, or proceeding against the Company with respect to this Agreement,
the Note, or other Loan Documents, or any judgment entered by any court in
respect thereof, shall be brought in the courts of the state of Florida as the
Lender in its sole discretion may elect, and the Company hereby irrevocably
submits to the nonexclusive jurisdiction of such courts for the purpose of any
such suit, action, or proceeding.  The Company hereby irrevocably consents to
the service of process in any suit, action, or proceeding in said court by the
mailing thereof by the Lender by registered or certified mail, postage prepaid,
to the Company's address shown opposite its name on the signature pages hereof.
Nothing herein or in any of the other Loan Documents shall affect the right of
Lender to serve process in any other manner permitted by law or shall limit the
right of Lender to bring any action or proceeding against the Company or with
respect to any of its property in courts in other jurisdictions.  The Company
hereby irrevocably waives any objections which it may now or hereafter have to
the laying of venue of any suit, action, or proceeding arising out of or
relating to this Agreement, the Note, or any other Loan Documents brought in the
courts LOCATED IN THE STATE OF FLORIDA, and hereby further irrevocably waives
any claim that any such suit, action, or proceeding brought in any such court
has been brought in any inconvenient forum.  Any action or proceeding by the
Company against the Lender shall be brought only in a court located in the State
of Florida.

4.4    INVALID PROVISIONS.  Any provision of any Loan Document held by a court
of competent jurisdiction to be illegal, invalid or unenforceable shall not
invalidate the remaining provisions of such Loan Document which shall remain in
full force and the effect thereof shall be confined to the provision held
invalid or illegal.

4.5    SUCCESSORS AND ASSIGNS.  The Loan Documents shall be binding upon and
inure to the benefit of the Company and the Lender and their respective
successors, assigns, and legal representatives; PROVIDED, HOWEVER, that the
Company may not, without the prior written consent of the Lender, assign any
rights, powers, duties, or obligations thereunder.  The Lender reserves the
right to sell all or a portion of its interest

                                      16
<PAGE>

in the Loan Documents, and the Lender shall have the right to disclose any
information in its possession regarding the Company to any potential
transferee of the Note or any part thereof.

4.6    HEADINGS.  SECTION headings are for convenience of reference only and
shall in no way affect the interpretation of this Agreement.

4.7    NO THIRD PARTY BENEFICIARY.  The parties do not intend the benefits of
this Agreement to inure to any third party, nor shall any Loan Document or any
course of conduct by any party hereto be construed to make or render the Lender
or any of its officers, directors, agents, or employees liable (a) to any
materialman, supplier, contractor, subcontractor, purchaser, or lessee of any
property owned by the Company, or (b) for debts or claims accruing to any such
Persons against the Company.

4.8    MULTIPLE COUNTERPARTS.  This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
agreement, and any of the parties hereto may execute this Agreement by signing
any such counterpart.

4.9    ENTIRETY.  THIS AGREEMENT, THE NOTE, AND THE OTHER LOAN DOCUMENTS
REFERRED TO HEREIN EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO
AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND
UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF
AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO.  THERE ARE NO
ORAL AGREEMENTS AMONG THE PARTIES HERETO.  THE PROVISIONS OF THIS AGREEMENT AND
THE OTHER LOAN DOCUMENTS TO WHICH THE COMPANY IS A PARTY MAY BE AMENDED OR
WAIVED ONLY BY AN INSTRUMENT IN WRITING SIGNED BY THE PARTIES HERETO.

4.10   CONFIDENTIALITY.  The Lender agrees to keep confidential any information
furnished or made available to it by the Company pursuant to this Agreement that
is marked confidential; PROVIDED THAT nothing herein shall prevent the Lender
from disclosing such information (a) to any affiliate of the Lender, or any
officer, director, employee, agent, or advisor of the Lender or any affiliate of
the Lender, (b) to any other Person if reasonably incidental to the
administration of the credit facility provided herein, (c) as required by any
legal requirement, (d) upon the order of any court or administrative agency,
(e) upon the request or demand of any governmental authority, (f) that is or
becomes available to the public or that otherwise becomes available to the
Lender other than as a result of a disclosure by the Lender prohibited by this
Agreement, (g) in connection with any litigation to which the Lender or any of
its affiliates may be a party, (h) to the extent necessary in connection with
the exercise of any remedy under this Agreement or any other Loan Document, and
(i) subject to provisions substantially similar to those contained in this
SECTION, to any actual or proposed participant or assignee.

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

Address for Notice:
                                          LENDER:

2424 North Federal Highway, Suite 150     Lilly Beter Capital Group, Ltd.
Boca Raton, Florida 33431
                                          By: /s/ Richard Kosloske
                                             ----------------------
                                          Name: Richard Kosloske
                                               --------------------
                                          Title: President
                                                ------------

                                      17
<PAGE>

                                          COMPANY:

7323 Oswego Road, Suite 930               USIP.com, Inc.
Liverpool, New York 13090                 A Utah Corporation

                                          By: /s/ Craig Burton
                                             -------------------
                                          Name: Craig Burton
                                               -----------------
                                          Title: President
                                                ----------

                                      18
<PAGE>

                                     EXHIBIT A
                                 TO LOAN AGREEMENT

                                    CREDIT NOTE

                                   Up to $200,000

                                   April 29, 2000

Lilly Beter Capital Group, Ltd.
2424 North Federal Highway, 150
Boca Raton, Florida 33431

       FOR VALUE RECEIVED, the undersigned, USIP.com, Inc., a Utah corporation
(the "COMPANY"), hereby unconditionally promises to pay to the order of Lilly
Beter Capital Group, Ltd., (the "LENDER"), located at 2424 North Federal
Highway, Suite 150, Boca Raton, Florida 33431 in lawful money of the United
States of America and in immediately available funds, the principal amount of up
to (a) TWO HUNDRED THOUSAND ($200,000), or, if less, (b) such lesser amount as
shall equal the aggregate unpaid principal amount of all Advances made by the
Lender to the Company pursuant to the Loan Agreement (as hereinafter defined),
in one payment together will all accrued and unpaid interest on the third
anniversary of the execution of this Note (the "Maturity Date").  The annual
interest rate shall be ten percent (10%) calculated from the date of each
Advance until the earlier of the repayment of such Advance, together with
accrued interest, or the Maturity Date, all as set forth in the Loan Agreement.

       The holder of this Note is authorized to endorse on the schedule annexed
hereto and made a part hereof or on a continuation thereof which shall be
attached hereto and made a part hereof the date and amount of each Advance made
by the Lender to the Company pursuant to the Loan Agreement and the date and
amount of each payment or prepayment of principal thereof.  Each such
endorsement shall constitute PRIMA FACIE evidence of the accuracy of the
information endorsed.  The failure to make any such endorsement (or any error
therein) shall not affect the obligations of the Company in respect of any
Advance or the Loan Agreement.

       This Note is the Credit Note referred to in the Loan Agreement dated as
of April 29, 2000 (as amended, restated, supplemented or otherwise modified from
time to time, the "LOAN AGREEMENT"), among the Company, as borrower, and the
Lender, is unsecured and is subject to the provisions of the Loan Agreement.

       Upon the occurrence of any one or more Events of Default, or upon
cancellation of the Credit Agreement by Lender or Lender's agent, all amounts
then remaining unpaid on this Note shall become, or may be declared to be,
immediately due and payable, all as

                                      19
<PAGE>

provided in the Loan Agreement.

       All parties now and hereafter liable with respect to this Note, whether
maker, principal, surety, guarantor, endorser or otherwise, hereby waive
presentment, demand, protest, notice of acceleration and intent to accelerate,
and all other notices of any kind.

       Unless otherwise defined herein, terms defined in the Loan Agreement and
used herein shall have the meanings given to them in the Loan Agreement.

       THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF FLORIDA, WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICTS OF LAWS THEREOF.

                                          USIP.COM, INC.

                                          By: /s/ Craig Burton
                                             -------------------
                                          Name: Craig Burton
                                               -----------------
                                          Title: President
                                                ----------------

                                      20
<PAGE>

<TABLE>
<CAPTION>
                                                    Unpaid
                   Principal        Amount of      Principal
    Advance          Amount         Principal       Balance        Notation
      Date         of Advance         Paid          of Note         Made By
 -------------  ---------------- --------------- -------------- --------------
    <S>            <C>              <C>            <C>             <C>

</TABLE>

                                  Schedule to Note

                                      21
<PAGE>

                                   EXHIBIT B
                               TO LOAN AGREEMENT

                              NOTICE OF BORROWING

                                 April 29, 2000

Lilly Beter Capital Group, Ltd.
2424 North Federal Highway, Suite 150
Boca Raton, Florida 33431

       The undersigned, USIP.com, Inc., a Utah corporation (the "COMPANY"),
refers to the Credit Agreement dated as of April 29, 2000 (as amended or
modified from time to time, the "LOAN AGREEMENT"), among the Company, as
borrower, and Lilly Beter Capital Group, Ltd., as lender (the "LENDER").
Capitalized terms used herein and not otherwise defined herein shall have the
meanings assigned to such terms in the Loan Agreement.

       The Company hereby gives you notice pursuant to Section 2.2 of the Loan
Agreement that it requests an Advance on the terms set forth below:

        (a)   The aggregate principal amount of the requested Advance is
$________.

       Delivery of an executed counterpart of this Notice of Borrowing by
telecopier will be effective as delivery of an original executed counterpart of
this Notice of Borrowing.

                     Very truly yours,

                     USIP.COM, INC.

                      By: ___________________________________
                      Name:______________________________
                      Title:  ______________________________

                                      22
<PAGE>

                                   USIP.COM, INC.

                             UNANIMOUS WRITTEN CONSENT
                           (IN LIEU OF A SPECIAL MEETING)

                                         OF

                               THE BOARD OF DIRECTORS

                                   APRIL 29, 2000

       The undersigned, constituting all of the members of the Board of
Directors (the "Board") of USIP.com, Inc., a Utah corporation (the "Company"),
and acting pursuant to the Utah Business Corporation Act and the Articles of
Incorporation and Bylaws, each as amended, of the Company, do hereby consent to
the action described herein and adopt the following resolutions as resolutions
of the Board:

                            APPROVAL OF LOAN TRANSACTIONS

              RESOLVED, that the Company enter into a separate credit
       agreement, in substantially the form presented to the Board and
       attached hereto as EXHIBIT A (each a "Loan Agreement"), with the
       following: Lilly Beter Capital Group, Ltd., ("Lender"); and

              FURTHER RESOLVED, that the Company execute,
       contemporaneously with the Loan Agreement and in favor of the
       Lender, a credit note in the form attached as an exhibit to the
       Loan Agreement, representing a three-year line of credit with the
       Lender not to exceed, at any one time, the amount of $200,000.

                                    MISCELLANEOUS

              RESOLVED, that any acts of any appropriate officer of the
       Company and of any person or persons designated and authorized to
       act by any such officer, which acts would have been authorized by
       the foregoing resolutions except that such acts were taken prior
       to the adoption of such resolutions, be, and they hereby are,
       severally ratified, confirmed, and approved;

              FURTHER RESOLVED, that the officers of the Company be, and
       each of them hereby is, authorized and empowered to certify to the
       passage of the foregoing resolutions and to certify as to the
       authenticity of the signatures of any person or persons executing
       any of the foregoing documents by or on behalf of the Company; and

                                      23
<PAGE>

              FURTHER RESOLVED, that in addition to and without limiting
       the foregoing, the appropriate officers of the Company be, and
       each hereby is, authorized to take, or cause to be taken, such
       further action and to execute and deliver, or cause to be executed
       and delivered, for and in the name and on behalf of the Company,
       all such further instruments and documents as such proper officer,
       with the advice of counsel, may deem to be necessary or advisable
       in order to effect the purpose or intent of the foregoing
       resolutions and to be in the best interests of the Company (as
       conclusively evidenced by the taking of such action or the
       execution and delivery of such instruments or documents, as the
       case may be, by or under the direction of any authorized officer),
       and all action heretofore taken by the officer of the Company in
       connection with the subject of the foregoing resolutions be, and
       it hereby is, approved, ratified and confirmed in all respects as
       the act and deed of the Company.

       IN WITNESS WHEREOF, the undersigned have executed this Unanimous Written
Consent (In Lieu of Special Meeting) of the Board of Directors of USIP.com,
Inc., as of the day and year first above written.

                                             /s/ Craig Burton
                                          Craig R. Burton, President

                                           /s/ Joseph J. Passalaqua
                                      Joseph J. Passalaqua, Secretary/Treasurer

                                            /s/ Carl E. Worboys
                                         Carl E. Worboys, Director

                                                /s/ Lilly Beter
                                           Lilly Beter, Director

                                      24

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