Document:

<PAGE>

EXHIBIT 4.1:  FORM OF SUBSCRIPTION CERTIFICATE.

CONTROL No. _________                  Number of Subscription Rights ___________

  VOID IF NOT RECEIVED BY THE SUBSCRIPTION AGENT BEFORE 5:00 P.M. NEW YORK CITY
                           TIME, ON _______ __, 2001

                               PURCHASESOFT, INC.
                      SUBSCRIPTION RIGHTS FOR COMMON STOCK

Dear Stockholder:

         As the registered owner of this Subscription Certificate, you are the
owner of the number of subscription rights (each a "Subscription Right") shown
above. Each Subscription Right entitles you to subscribe for one share of common
stock, par value $0.01 per share ("Common Stock"), of PurchaseSoft, Inc. (the
"Basic Subscription Privilege"). You may subscribe for such shares at the
Subscription Price of $0.88 per share. If you subscribe for all of the shares
available pursuant to the Basic Subscription Privilege, you are also entitled to
purchase an unlimited number of additional shares at the Subscription Price
(subject to proration) (the "Oversubscription Privilege").

         The other terms and conditions of these Subscription Rights are set
forth in the enclosed prospectus. You have been issued 1.52 Subscription Rights
per share of Common Stock that you held on May ___, 2001. You have not been
issued fractional Subscription Rights, but instead your number of Subscription
Rights was rounded down to the nearest whole Subscription Right.

SAMPLE CALCULATION OF BASIC SUBSCRIPTION PRIVILEGE:

       Shares of Common Stock owned on May ___, 2001:                        100
       (number of Subscription Rights issued per share of Common Stock):   X1.52
                                                                           -----

         New Shares:                                                        152

You have two choices:

         1.       You can subscribe for all of the new shares listed at the top
                  of the page (the "Basic Subscription Privilege").

         2.       You can subscribe for more than the number of new shares
                  listed above (the "Oversubscription Privilege").  Shares may
                  be available to you subject to an allocation process as
                  described in the prospectus.

TO SUBSCRIBE, FULL PAYMENT OF THE SUBSCRIPTION PRICE IS REQUIRED FOR EACH SHARE
OF COMMON STOCK. YOU MUST COMPLETE THE REVERSE SIDE OF THIS FORM TO SUBSCRIBE
FOR NEW SHARES.

<TABLE>
<CAPTION>
ATTEST:                                              PURCHASESOFT, INC.
<S>                                         <C>      <C>
By: /s/  Philip D. Wolf                              By: /s/  Donald S. Laguardia
    --------------------------------                     -----------------------------
         Philip D. Wolf,                                      Donald S. LaGuardia
         Assistant Secretary                                  Chairman and CEO

                                            Control No.:
                                                                       --------------------------
                                            Account No.:
                                                                       --------------------------
                                            No. of Subscription Rights:
                                                                       --------------------------
</TABLE>

<PAGE>

                  DELIVERY OPTIONS FOR SUBSCRIPTION CERTIFICATE

BY FIRST CLASS MAIL, REGISTERED MAIL OR OVERNIGHT DELIVERY:

                     American Stock Transfer & Trust Company
                             Attention: Rights Agent
                        6201 Fifteenth Avenue, 3rd Floor
                               Brooklyn, NY 11219

                    Delivery to an address other than one of the addresses
                               listed above will not
                             constitute valid delivery.
                    Delivery by facsimile will not constitute valid delivery.

                PLEASE PRINT ALL INFORMATION CLEARLY AND LEGIBLY.

IF YOU WISH TO SUBSCRIBE FOR YOUR FULL BASIC SUBSCRIPTION PRIVILEGE OR A PORTION
THEREOF:

I apply for ______________________ shares x $0.88  =    $_______________________
                (no. of new shares)                            (amount enclosed)

IF YOU HAVE SUBSCRIBED FOR YOUR FULL BASIC SUBSCRIPTION PRIVILEGE AND WISH TO
PURCHASE ADDITIONAL SHARES PURSUANT TO THE OVERSUBSCRIPTION PRIVILEGE:

I apply for ______________________ shares x $0.88  =    $_______________________
                (no. of new shares)                            (amount enclosed)

TO SUBSCRIBE: I acknowledge that I have received the prospectus for this offer
and I hereby irrevocably subscribe for the number of shares indicated above on
the terms and conditions specified in the prospectus. I hereby agree that if I
fail to pay for the shares of Common Stock for which I have subscribed,
PurchaseSoft, Inc. may exercise its legal remedies against me.

                                              __________________________________
                                              Signature(s) of Subscriber(s)

IMPORTANT: THE SIGNATURE(S) MUST CORRESPOND IN EVERY PARTICULAR, WITHOUT
ALTERATION, WITH THE NAME(S) AS PRINTED ON THE REVERSE OF THIS SUBSCRIPTION
CERTIFICATE.

<PAGE>

                    SPECIAL ISSUANCE OR DELIVERY INSTRUCTIONS
                        FOR SUBSCRIPTION RIGHTS HOLDERS:

(a)      To be completed ONLY if the certificate representing the Common Stock
         is to be issued in a name other than that of the registered holder.
         (See the Instructions.) DO NOT FORGET TO COMPLETE THE GUARANTEE OF
         SIGNATURE(S) SECTION BELOW.
<TABLE>
<CAPTION>
ISSUE COMMON STOCK TO:
<S>                                                               <C>
-----------------------------------------                         ------------------------------------
         (Please Print Name)                                           (Street Address)

-----------------------------------------                         -------------------------------------
         (Social Security # or Tax ID #)                               (City,   State        Zip Code)

(b)      To be completed ONLY if the certificate representing the Common Stock
         is to be sent to an address other than that show above. (See the
         Instructions.) DO NOT FORGET TO COMPLETE THE GUARANTEE OF SIGNATURE(S)
         SECTION BELOW.

----------------------------------------                           ------------------------------------
         (Please Print Name)                                           (Street Address)

-----------------------------------------                          ------------------------------------
         (Social Security # or Tax ID #)                               (City,   State        Zip Code)
</TABLE>
                                 ACKNOWLEDGEMENT

         THE SUBSCRIPTION ORDER FORM IS NOT VALID UNLESS YOU SIGN BELOW

         I/We acknowledge receipt of the prospectus and understand that after
delivery to the PurchaseSoft, Inc., I/we may not modify or revoke this
Subscription Certificate. Under penalties of perjury, I/we certify that the
information contained herein, including the social security number or taxpayer
identification number given above, is correct. If the Special Issuance or
Delivery Instructions for Subscription Rights Holders are completed, I/we
certify that although the certificate representing the Common Stock is to be
issued in a name other than one registered holder, beneficial ownership of the
Common Stock will not change.

         The signature below must correspond with the name of the registered
holder exactly as it appears on the books of the Company's transfer agent
without any alteration or change whatsoever.

SIGN HERE:
           --------------------------         -------------------------------
                               Signature(s) Of Registered Holder

DATED:                     , 2001
       --------------------

         If signature is by trustee(s), executor(s), administrator(s),
guardian(s), attorney(s)-in-fact, agent(s), officer(s) of a corporation or
another acting in a fiduciary or representative capacity, please provide the
following information (please print). See the instructions.
<TABLE>
<S>                                                           <C>
Name(s):                                                      Daytime Phone:
         --------------------------------------------                        --------------------------------------

Capacity (Full Title):                                        Evening Phone:
                       ------------------------------                        --------------------------------------

Address:                                                      Taxpayer Identification
         --------------------------------------------          or Social Security Number:
          (including zip code)                                                             ------------------------
</TABLE>

<PAGE>

                        GUARANTEE OF SIGNATURE(S)

         All Subscription Rights Holders who specify special issuance or
delivery instructions must have their signatures guaranteed by an Eligible
Institutions. An "Eligible Institution" for this purpose is a bank, stockbroker,
savings and loan association and credit union with membership in an approved
signature guaranteed medallion program, pursuant to Rule 17Ad-15 of the
Securities Exchange Act of 1934.
<TABLE>
<S>                                                           <C>
Authorized Signature:                                         Name of Firm:
                      -------------------------------                       ---------------------------------------

Name:                                                         Address:
      -----------------------------------------------                  --------------------------------------------

Title:                                                        Area Code and Telephone No.:
       ----------------------------------------------                                      ------------------------
</TABLE>

YOU MUST HAVE YOUR SIGNATURE GUARANTEED IF YOU WISH TO HAVE YOUR SHARES
DELIVERED TO AN ADDRESS OTHER YOUR OWN OR TO A STOCKHOLDER OTHER THAN THE
REGISTERED HOLDER.

Your signature must be guaranteed by an Eligible Guarantor Institution, as
defined in Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended.
These generally include (a) a commercial bank or trust company, (b) a member
firm of a domestic stock exchange, or (c) a credit union.

                                  Signature Guaranteed:

                                  By:
                                     ---------------------------------------
                                                (Signature of Officer)

                                  -------------------------------------------
                                               (Name of Bank or Firm)

FULL PAYMENT FOR THE SHARES MUST ACCOMPANY THIS FORM AND MUST BE MADE IN UNITED
STATES DOLLARS BY (I) CHECK OR BANK DRAFT DRAWN UPON UNITED STATES BANK OR
POSTAL, TELEGRAPHIC OR EXPRESS MONEY ORDER PAYABLE TO AMERICAN STOCK TRANSFER &
TRUST COMPANY, AS SUBSCRIPTION AGENT; OR (II) IN THE CASE OF PERSONS ACQUIRING
SHARES AT AN AGGREGATE SUBSCRIPTION PRICE OF $500,000 OR MORE, AN ALTERNATIVE
PAYMENT METHOD ARRANGED WITH THE SUBSCRIPTION AGENT AND APPROVED BY
PURCHASESOFT, INC.

STOCK CERTIFICATES FOR THE SHARES SUBSCRIBED TO PURSUANT TO THE RIGHTS OFFERING
WILL BE DELIVERED AS SOON AS PRACTICABLE AFTER THE EXPIRATION DATE. ANY REFUND
IN CONNECTION WITH YOUR SUBSCRIPTION WILL BE DELIVERED AS SOON AS PRACTICABLE
THEREAFTER.

FOR INSTRUCTIONS ON THE USE OF PURCHASESOFT, INC. SUBSCRIPTION CERTIFICATES
CONSULT PHILIP B. WOLF, CHIEF FINANCIAL OFFICER OF PURCHASESOFT, INC. ((952)
843-6104), OR YOUR BANK OR BROKER WITH QUESTIONS<PAGE>

    EXHIBIT 10.3: CONVERSION AGREEMENT, DATED APRIL 12, 2001, BY AND BETWEEN
                PURCHASESOFT, INC. AND L-R GLOBAL PARTNERS, L.P.

                                                                           FINAL

                               PURCHASESOFT, INC.

         This CONVERSION AGREEMENT (this "AGREEMENT"), made as of the 12th day
of April, 2001, between PURCHASESOFT, INC., a Delaware corporation (the
"COMPANY"), and L-R GLOBAL PARTNERS, L.P., a Delaware limited partnership
("INVESTOR").

         WHEREAS, the Company issued on each of March 23, 2000 and January 30,
2001 a demand promissory note to the Investor in the principal amount of
$5,000,000.00 each (together, the "NOTES");

         WHEREAS, the Investor desires to convert the aggregate principal amount
of $10,000,000.00 and interest accrued on the Notes (the "COMPANY DEBT") into
shares of the Company's common stock, $0.01 par value per share (the "COMMON
STOCK");

         WHEREAS, the Notes are not by their terms convertible, but the Company
believes it is in its best interests to allow a conversion of the Notes into
Common Stock, thereby canceling its debt owing to the Investor under the Notes;
and

         WHEREAS, the Company desires to permit the conversion of the Investor's
Notes into Common Stock, and the Company and Investor wish to enter into an
agreement setting forth the terms of the conversion of the Notes.

         NOW, THEREFORE, in consideration of the mutual promises, covenants and
conditions hereinafter set forth and other good and valuable consideration, the
receipt and sufficiency of which are hereby expressly acknowledged, the parties
hereto agree as follows:

         1. CONVERSION OF THE NOTES. Subject to the terms and conditions of this
agreement, on the date hereof, the Investor hereby irrevocably agrees to convert
the Company Debt into such number shares (the "SHARES") of the Company's Common
Stock as is equal to quotient obtained by dividing (a) the Company Debt by (b)
$0.88, which price was the last reported sale price of the Company's Common
Stock on April 12, 2001 (the "CONVERSION PRICE") and fulfil its obligations to
convert the Company Debt by exercise of its subscription rights, through
cancellation of the Company Debt as consideration, in a Rights Offering (as
hereinafter defined) as described in Section 3 hereof, such conversion to take
place in connection, and concurrently, with such Rights Offering, PROVIDED,
HOWEVER, that in the event that a Rights Offering has not occurred permitting
such conversion of the Company Debt to take place prior to June 30, 2001 in such
Rights Offering, then the Investor irrevocably agrees to convert the Company
Debt on June 30, 2001 in accordance with the foregoing formula outside of a
Rights Offering. Subject to and upon

<PAGE>
                                  -2-

the issuance by the Company of the Shares to the Investor, the Company Debt
shall be deemed to have been discharged and paid in full by the Company and
the Company shall have no further obligation or liability of any kind
whatsoever to the Investor with respect to the Company Debt.

         2. REPRESENTATION AND WARRANTY. This Agreement constitutes the valid
and binding agreement of each party hereto, enforceable against such party in
accordance with its terms, except to the extent enforcement thereof may be
limited by insolvency, bankruptcy and similar laws affecting generally the
enforcement of creditor's rights and by the discretionary nature of equitable
remedies.

         3. RIGHTS OFFERING. The Company hereby covenants and agrees with
Investor that as promptly as practicable after the date hereof, the Company
shall conduct a "rights offering" providing to all of the Company's stockholders
the right to purchase shares of the Company's Common Stock at the Conversion
Price (a "RIGHTS OFFERING"), which Rights Offering and the shares issued in
connection therewith, shall be registered under the Securities Act of 1933, as
amended (the "1933 ACT").

         3A. INVESTMENT REPRESENTATIONS. In the event that the conversion of the
Company Debt contemplated pursuant to Section 2 and the proviso therein occurs
on June 30, 2001 outside of a Rights Offering, the Investor understands and
agrees that:

                  This Agreement is made with Investor in reliance upon
Investor's representation to the Company, which by Investor's execution of this
Agreement Investor hereby confirms, that the shares issued upon conversion of
the Notes outside of a Rights Offering (as a such, the "RESTRICTED SHARES") will
be acquired for investment for Investor's own account, not as a nominee or
agent, and not with a view to the resale or distribution of any part thereof,
and that Investor has no present intention of selling, granting any
participation in, or otherwise distributing the same. By executing this
Agreement, Investor further represents that Investor does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
participation to such person or to any third person, with respect to the
Restricted Shares. Investor is an "accredited investor" within the meaning of
Securities and Exchange Commission ("SEC") Rule 501 of Regulation D, as
presently in effect.

                  The Restricted Shares will be characterized as a "restricted
security" under the federal securities laws inasmuch as they will be acquired
from the Company in a transaction not involving a public offering and that under
such laws and applicable regulations neither the Restricted Shares may be resold
without registration under the 1933 Act only in certain limited circumstances.
In this connection, Investor represents that it is familiar with SEC Rule 144,
as presently in effect, and understands the resale limitations imposed thereby
and by the 1933 Act. Without in any way limiting the representations set forth
above, Investor further agrees not to make any disposition of the Restricted
Shares unless:

                           (a) There is then in effect a Registration Statement
under the 1933 Act covering such proposed disposition and such disposition is
made in accordance with such Registration Statement; or

<PAGE>
                                  -3-

                           (b) (i) Investor shall have notified the Company of
the proposed disposition and (ii) if reasonably requested by the Company,
Investor shall have furnished the Company with an opinion of counsel, reasonably
satisfactory to the Company, that such disposition will not require registration
of Restricted Shares under the 1933 Act. It is understood that the Restricted
Shares may bear the following legend:

                  These securities have not been registered under the Securities
                  Act of 1933, as amended (the "ACT"). They may not be sold,
                  offered for sale, pledged or hypothecated in the absence of a
                  registration statement in effect with respect to the
                  securities under such Act or an opinion of counsel reasonably
                  satisfactory to the Company that such registration is not
                  required or unless sold pursuant to Rule 144 or Rule 144A of
                  such Act.

         3B. REGISTRATION RIGHTS. In the event that the conversion of the
Company Debt contemplated pursuant to Section 2 and the proviso therein occurs
on June 30, 2001 outside of a Rights Offering, the Company hereby agrees to
enter into, at such time, a customary registration rights agreement with the
Investor, in form and substance mutually acceptable to the Company and the
Investor, providing for the registration under Act of the resale of such
Restricted Shares.

         4. MISCELLANEOUS. The representations, warranties and covenants of the
Company and Investor contained in or made pursuant to this Agreement shall
survive the execution and delivery of this Agreement. Except as otherwise
provided herein, the terms and conditions of this Agreement shall inure to the
benefit of and be binding upon the respective successors and assigns of the
parties. Nothing in this Agreement, express or implied, is intended to confer
upon any party other than the parties hereto or their respective successors and
assigns any rights, remedies, obligations or liabilities under or by reason of
this Agreement, except as expressly provided in this Agreement. This Agreement
may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument. The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this
Agreement. This Agreement shall be governed by and construed under the laws of
the State of Delaware applicable to agreements among residents of, and entered
into and to be performed entirely within, such state. Any term of this Agreement
may be amended and the observance of any term of this Agreement may be waived
(either generally or in a particular instance and either retroactively or
prospectively) only with the written consent of the Company and Investor. If one
or more provisions of this Agreement are held to be unenforceable under
applicable law, such provision shall be excluded from this Agreement, as the
case may be, and the balance of the Agreement, as the case may be, shall be
interpreted as if such provision were so excluded and such agreement shall be
enforceable in accordance with its respective terms. This Agreement and the
documents referred to herein constitute the entire agreement among the parties
and no party shall be liable or bound to any other party in any manner by any
warranties, representations or covenants except as specifically set forth herein
or therein.

                           [SIGNATURES ON NEXT PAGE.]

<PAGE>

                                  -4-

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

                                   PURCHASESOFT, INC.

                                   By:   /s/  Philip D. Wolf
                                     ------------------------------------
                                          Name:  Philip D. Wolf
                                          Title:  Chief Financial Officer

                                   L-R GLOBAL PARTNERS, L.P.

                                   By:      L-R Managers, LLC,
                                            General Partner

                                   By:   /s/  J. Murray Logan
                                     ---------------------------------
                                            Title: Investment Manager

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