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                                                                     Exhibit 4.2

        CERTIFICATE OF DESIGNATION OF THE RELATIVE RIGHTS AND PREFERENCES
                                     OF THE
                      SERIES D CONVERTIBLE PREFERRED STOCK
                                       OF
                               THE VIALINK COMPANY

          The undersigned, the President of The viaLink Company, a Delaware
corporation (the "Company"), in accordance with the provisions of the Delaware
General Corporation Law, does hereby certify that, pursuant to the authority
conferred upon the Board of Directors by the Certificate of Incorporation of the
Company, the following resolution creating a series of Series D Convertible
Preferred Stock, was duly adopted on September 30, 2002:

          RESOLVED, that pursuant to the authority expressly granted to and
vested in the Board of Directors of the Company by provisions of the Certificate
of Incorporation of the Company (the "Certificate of Incorporation"), there
hereby is created out of the shares of Preferred Stock, par value $.001 per
share, of the Company authorized in Article IV of the Certificate of
Incorporation (the "Preferred Stock"), a series of Preferred Stock of the
Company, to be named "Series D Convertible Preferred Stock," consisting of One
Thousand Two Hundred Fifty (1,250) shares, which series shall have the following
designations, powers, preferences and relative and other special rights and the
following qualifications, limitations and restrictions:

          1.   Designation and Rank. The designation of such series of the
Preferred Stock shall be the Series D Convertible Preferred Stock, par value
$.001 per share (the "Series D Preferred Stock"). The maximum number of shares
of Series D Preferred Stock shall be One Thousand Two Hundred Fifty (1,250)
shares. The Series D Preferred Stock shall rank (i) prior to the common stock,
par value $.001 per share (the "Common Stock"), and to all other classes and
series of equity securities of the Company which by its terms does not rank
senior to the Series D Preferred Stock ("Junior Stock"); (ii) on parity with the
Series C Convertible Preferred Stock and Series B Convertible Preferred Stock,
and (iii) junior to any class or series of equity securities which by its terms
shall rank senior to the Series D Preferred Stock. The Series D Preferred Stock
shall be subordinate to and rank junior to all indebtedness of the Company now
or hereafter outstanding.

          2.   Dividends.

               (a)  Payment of Dividends. The holders of record of shares of
Series D Preferred Stock shall be entitled to receive, out of any assets at the
time legally available therefor and when and as declared by the Board of
Directors, dividends at the rate of eight percent (8%) of the stated Liquidation
Preference Amount (as defined below) per share per annum commencing on the date
of issuance (the "Issuance Date") of the Series D Preferred Stock, increasing to
the rate of twelve percent (12%) of the stated Liquidation Preference Amount on
January 1, 2004 (the "Dividend Payment"), and no more, payable quarterly at the
option of the Company in cash or in shares of Common Stock, and if paid in
shares of Common Stock, in an

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amount equal to the quotient of (i) the Dividend Payment divided by (ii) the
Conversion Price (as defined in Section 5(d) below). Notwithstanding the
foregoing, the Dividend Payment for the first year following the Issuance Date
shall be payable on the Issuance Date to the holders of record of shares of
Series D Preferred Stock in shares of Common Stock based on the VWAP (as defined
in Section 5(d) hereof) of the Common Stock for the five (5) trading days prior
to the Issuance Date. The shares of Common Stock shall be registered pursuant to
an effective registration statement under the Securities Act of 1933, as
amended. In the case of shares of Series D Preferred Stock outstanding for less
than a full year, dividends shall be pro rated based on the portion of each year
during which such shares are outstanding. Dividends on the Series D Preferred
Stock shall be cumulative, shall accrue and be payable quarterly at the option
of the Company in cash or into shares of Common Stock in accordance with the
terms and provisions of this Section 2(a). Dividends on the Series D Preferred
Stock are prior and in preference to any declaration or payment of any
distribution (as defined below) on any outstanding shares of Common Stock or any
other equity securities of the Company ranking junior to the Series D Preferred
Stock as to the payment of dividends. Such dividends shall accrue on each share
of Series D Preferred Stock from day to day whether or not earned or declared so
that if such dividends with respect to any previous dividend period at the rate
provided for herein have not been paid on, or declared and set apart for, all
shares of Series D Preferred Stock at the time outstanding, the deficiency shall
be fully paid on, or declared and set apart for, such shares on a pro rata basis
with all other equity securities of the Company ranking on a parity with the
Series D Preferred Stock as to the payment of dividends before any distribution
shall be paid on, or declared and set apart for Common Stock or any other equity
securities of the Company ranking junior to the Series D Preferred Stock as to
the payment of dividends.

               (b)  So long as any shares of Series D Preferred Stock are
outstanding, the Company shall not declare, pay or set apart for payment any
dividend or make any distribution on any Junior Stock (other than dividends or
distributions payable in additional shares of Junior Stock), unless at the time
of such dividend or distribution the Company shall have paid all accrued and
unpaid dividends on the outstanding shares of Series D Preferred Stock.

               (c)  In the event of a dissolution, liquidation or winding up of
the Company pursuant to Section 4, all accrued and unpaid dividends on the
Series D Preferred Stock shall be payable on the day immediately preceding the
date of payment of the preferential amount to the holders of Series D Preferred
Stock. In the event of (i) a mandatory redemption pursuant to Section 9 or (ii)
a redemption upon the occurrence of a Major Transaction (as defined in Section
8(c)) or a Triggering Event (as defined in Section 8(d)), all accrued and unpaid
dividends on the Series D Preferred Stock shall be payable on the day
immediately preceding the date of such redemption. In the event of a voluntary
conversion pursuant to Section 5(a), all accrued and unpaid dividends on the
Series D Preferred Stock being converted shall be payable on the day immediately
preceding the Voluntary Conversion Date (as defined in Section 5(b)(i)).

               (d)  For purposes hereof, unless the context otherwise requires,
"distribution" shall mean the transfer of cash or property without
consideration, whether by way of dividend or otherwise, payable other than in
shares of Common Stock or other equity securities of the

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Company, or the purchase or redemption of shares of the Company (other than
redemptions set forth in Section 8 below) for cash or property.

          3.   Voting Rights.

               (a)  Class Voting Rights. The Series D Preferred Stock shall have
the following class voting rights (in addition to the voting rights set forth in
Section 3(b) hereof). So long as any shares of the Series D Preferred Stock
remain outstanding, the Company shall not, without the affirmative vote or
consent of the holders of at least three-fourths (3/4) of the shares of the
Series D Preferred Stock outstanding at the time, given in person or by proxy,
either in writing or at a meeting, in which the holders of the Series D
Preferred Stock vote separately as a class: (i) authorize, create, issue or
increase the authorized or issued amount of any class or series of stock,
including but not limited to the issuance of any more shares of previously
authorized Common Stock or Preferred Stock, ranking prior to the Series D
Preferred Stock, with respect to the distribution of assets on liquidation,
dissolution or winding up; (ii) amend, alter or repeal the provisions of the
Series D Preferred Stock, whether by merger, consolidation or otherwise, so as
to adversely affect any right, preference, privilege or voting power of the
Series D Preferred Stock; provided, however, that any creation and issuance of
another series of Junior Stock shall not be deemed to adversely affect such
rights, preferences, privileges or voting powers; (iii) repurchase, redeem or
pay dividends on, shares of the Company's Junior Stock; (iv) amend the
Certificate of Incorporation or By-Laws of the Company so as to affect
materially and adversely any right, preference, privilege or voting power of the
Series D Preferred Stock; provided, however, that any creation and issuance of
another series of Junior Stock or any other class or series of equity securities
which by its terms shall rank on parity with the Series D Preferred Stock shall
not be deemed to materially and adversely affect such rights, preferences,
privileges or voting powers; (v) effect any distribution with respect to Junior
Stock; or (vi) reclassify the Company's outstanding securities.

               (b)  General Voting Rights. Except with respect to transactions
upon which the Series D Preferred Stock shall be entitled to vote separately as
a class pursuant to Section 3(a) above and except as otherwise required by
Delaware law, the Series D Preferred Stock shall have no voting rights. The
Common Stock into which the Series D Preferred Stock is convertible shall, upon
issuance, have all of the same voting rights as other issued and outstanding
Common Stock of the Company.

          4.   Liquidation Preference.

               (a)  In the event of the liquidation, dissolution or winding up
of the affairs of the Company, whether voluntary or involuntary, after payment
or provision for payment of the debts and other liabilities of the Company, the
holders of shares of the Series D Preferred Stock then outstanding shall be
entitled to receive, out of the assets of the Company whether such assets are
capital or surplus of any nature, an amount equal to $12,000 per share (the
"Liquidation Preference Amount") of the Series D Preferred Stock plus any
accrued but unpaid dividends before any payment shall be made or any assets
distributed to the holders of the

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Common Stock or any other Junior Stock. If the assets of the Company are not
sufficient to pay in full the Liquidation Preference Amount plus any accrued but
unpaid dividends payable to the holders of outstanding shares of the Series D
Preferred Stock and any series of preferred stock or any other class of stock on
a parity, as to rights on liquidation, dissolution or winding up, with the
Series D Preferred Stock, then all of said assets will be distributed among the
holders of the Series D Preferred Stock and the other classes of stock on a
parity with the Series D Preferred Stock, if any, ratably in accordance with the
respective amounts that would be payable on such shares if all amounts payable
thereon were paid in full. The liquidation payment with respect to each
outstanding fractional share of Series D Preferred Stock shall be equal to a
ratably proportionate amount of the liquidation payment with respect to each
outstanding share of Series D Preferred Stock. All payments for which this
Section 4(a) provides shall be in cash, property (valued at its fair market
value as determined by the Company's independent, outside accountant) or a
combination thereof; provided, however, that no cash shall be paid to holders of
Junior Stock unless each holder of the outstanding shares of Series D Preferred
Stock has been paid in cash the full Liquidation Preference Amount plus any
accrued but unpaid dividends to which such holder is entitled as provided
herein. After payment of the full Liquidation Preference Amount plus any accrued
but unpaid dividends to which each holder is entitled, such holders of shares of
Series D Preferred Stock will not be entitled to any further participation as
such in any distribution of the assets of the Company.

               (b)  A consolidation or merger of the Company with or into any
other corporation or corporations, or a sale of all or substantially all of the
assets of the Company, or the effectuation by the Company of a transaction or
series of transactions in which more than 50% of the voting shares of the
Company is disposed of or conveyed, shall not be deemed to be a liquidation,
dissolution, or winding up within the meaning of this Section 4. In the event of
the merger or consolidation of the Company with or into another corporation, the
Series D Preferred Stock shall maintain its relative powers, designations and
preferences provided for herein and no merger shall result inconsistent
therewith.

               (c)  Written notice of any voluntary or involuntary liquidation,
dissolution or winding up of the affairs of the Company, stating a payment date
and the place where the distributable amounts shall be payable, shall be given
by mail, postage prepaid, no less than forty-five (45) days prior to the payment
date stated therein, to the holders of record of the Series D Preferred Stock at
their respective addresses as the same shall appear on the books of the Company.

          5.   Conversion. The holder of Series D Preferred Stock shall have the
following conversion rights (the "Conversion Rights"):

               (a)  Right to Convert. At any time on or after the Issuance Date,
the holder of any such shares of Series D Preferred Stock may, at such holder's
option, subject to the limitations set forth in Section 7 herein, elect to
convert (a "Voluntary Conversion") all or any portion of the shares of Series D
Preferred Stock held by such person into a number of fully paid and
nonassessable shares of Common Stock equal to the quotient of (i) the
Liquidation

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Preference Amount of the shares of Series D Preferred Stock being converted
divided by (ii) the Conversion Price (as defined in Section 5(d) below) then in
effect as of the date of the delivery by such holder of its notice of election
to convert.

               (b)  Mechanics of Voluntary Conversion. The Voluntary Conversion
of Series D Preferred Stock shall be conducted in the following manner:

                    (i)   Holder's Delivery Requirements. To convert Series D
Preferred Stock into full shares of Common Stock on any date (the "Voluntary
Conversion Date"), the holder thereof shall (A) transmit by facsimile (or
otherwise deliver), for receipt on or prior to 5:00 p.m., New York time on such
date, a copy of a fully executed notice of conversion in the form attached
hereto as Exhibit I (the "Conversion Notice"), to the Company, and (B) surrender
to a common carrier for delivery to the Company as soon as practicable following
such Voluntary Conversion Date but in no event later than six (6) business days
after such date the original certificates representing the shares of Series D
Preferred Stock being converted (or an indemnification undertaking with respect
to such shares in the case of their loss, theft or destruction) (the "Preferred
Stock Certificates") and the originally executed Conversion Notice.

                    (ii)  Company's Response. Upon receipt by the Company of a
facsimile copy of a Conversion Notice, the Company shall immediately send, via
facsimile, a confirmation of receipt of such Conversion Notice to such holder.
Upon receipt by the Company of the Preferred Stock Certificates to be converted
pursuant to a Conversion Notice, together with the originally executed
Conversion Notice, the Company or its designated transfer agent (the "Transfer
Agent"), as applicable, shall, within three (3) business days following the date
of receipt by the Company of both, issue and deliver to the Depository Trust
Company ("DTC") account on the Holder's behalf via the Deposit Withdrawal Agent
Commission System ("DWAC") as specified in the Conversion Notice, registered in
the name of the holder or its designee, for the number of shares of Common Stock
to which the holder shall be entitled. If the number of shares of Preferred
Stock represented by the Preferred Stock Certificate(s) submitted for conversion
is greater than the number of shares of Series D Preferred Stock being
converted, then the Company shall, as soon as practicable and in no event later
than five (5) business days after receipt of the Preferred Stock Certificate(s)
and at the Company's expense, issue and deliver to the holder a new Preferred
Stock Certificate representing the number of shares of Series D Preferred Stock
not converted.

                    (iii) Dispute Resolution. In the case of a dispute as to the
arithmetic calculation of the number of shares of Common Stock to be issued upon
conversion, the Company shall promptly issue to the holder the number of shares
of Common Stock that is not disputed and shall submit the arithmetic
calculations to the holder via facsimile as soon as possible, but in no event
later than two (2) business days after receipt of such holder's Conversion
Notice. If such holder and the Company are unable to agree upon the arithmetic
calculation of the number of shares of Common Stock to be issued upon such
conversion within one (1) business day of such disputed arithmetic

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calculation being submitted to the holder, then the Company shall within one (1)
business day submit via facsimile the disputed arithmetic calculation of the
number of shares of Common Stock to be issued upon such conversion to the
Company's independent, outside accountant. The Company shall cause the
accountant to perform the calculations and notify the Company and the holder of
the results no later than seventy-two (72) hours from the time it receives the
disputed calculations. Such accountant's calculation shall be binding upon all
parties absent manifest error. The reasonable expenses of such accountant in
making such determination shall be paid by the Company, in the event the
holder's calculation was correct, or by the holder, in the event the Company's
calculation was correct, or equally by the Company and the holder in the event
that neither the Company's or the holder's calculation was correct. The period
of time in which the Company is required to effect conversions or redemptions
under this Certificate of Designation shall be tolled with respect to the
subject conversion or redemption pending resolution of any dispute by the
Company made in good faith and in accordance with this Section 5(b)(iii).

                    (iv) Record Holder. The person or persons entitled to
receive the shares of Common Stock issuable upon a conversion of the Series D
Preferred Stock shall be treated for all purposes as the record holder or
holders of such shares of Common Stock on the Conversion Date.

                    (v)  Company's Failure to Timely Convert. If within three
(3) business days of the Company's receipt of the Conversion Notice and the
Preferred Stock Certificates to be converted (the "Share Delivery Period") the
Company shall fail to issue and deliver to a holder the number of shares of
Common Stock to which such holder is entitled upon such holder's conversion of
the Series D Preferred Stock or to issue a new Preferred Stock Certificate
representing the number of shares of Series D Preferred Stock to which such
holder is entitled pursuant to Section 5(b)(ii) (a "Conversion Failure"), in
addition to all other available remedies which such holder may pursue hereunder
and under the Series D Convertible Preferred Stock Purchase Agreements among the
Company and the purchasers listed therein (the "Purchase Agreements") (including
indemnification pursuant to Article VI thereof), the Company shall pay
additional damages to such holder on each business day after such third (3rd)
business day that such conversion is not timely effected in an amount equal 0.5%
of the product of (A) the sum of the number of shares of Common Stock not issued
to the holder on a timely basis pursuant to Section 5(b)(ii) and to which such
holder is entitled and, in the event the Company has failed to deliver a
Preferred Stock Certificate to the holder on a timely basis pursuant to Section
5(b)(ii), the number of shares of Common Stock issuable upon conversion of the
shares of Series D Preferred Stock represented by such Preferred Stock
Certificate, as of the last possible date which the Company could have issued
such Preferred Stock Certificate to such holder without violating Section
5(b)(ii) and (B) the VWAP (as defined in Section 5(d) below) of the Common Stock
on the last possible date which the Company could have issued such Common Stock
and such Preferred Stock Certificate, as the case may be, to such holder without
violating Section 5(b)(ii). If the Company fails to pay the additional damages
set forth in this Section 5(b)(v) within five (5) business days of the date
incurred, then such payment shall bear interest at the rate of 2% per month (pro
rated for partial months) until such payments are made.

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               (c)  Mandatory Conversion.

                    (i)   Each share of Series D Preferred Stock outstanding on
the Mandatory Conversion Date shall, automatically and without any action on the
part of the holder thereof, convert into a number of fully paid and
nonassessable shares of Common Stock equal to the quotient of (i) the
Liquidation Preference Amount of the shares of Series D Preferred Stock
outstanding on the Mandatory Conversion Date divided by (ii) the Conversion
Price in effect on the Mandatory Conversion Date.

                    (ii)  As used herein, a "Mandatory Conversion Date" shall be
any date after January 1, 2004, provided, that the VWAP of the Common Stock
exceeds $.36 for a period of twenty (20) consecutive trading days and the Common
Stock underlying the Series D Preferred Stock is registered pursuant to an
effective registration statement under the Securities Act of 1933, as amended;
and further provided that the Mandatory Conversion Date shall be extended for as
long as (A) the conversion of such share of Preferred Stock would violate
Section 7, (B) a Triggering Event (as defined in Section 8(d) hereof) shall have
occurred and be continuing or (C) any event shall have occurred and be
continuing which with the passage of time and the failure to cure would result
in a Triggering Event. The Mandatory Conversion Date and the Voluntary
Conversion Date collectively are referred to in this Certificate of Designation
as the "Conversion Date."

                    (iii) On the Mandatory Conversion Date, the outstanding
shares of Series D Preferred Stock shall be converted automatically without any
further action by the holders of such shares and whether or not the certificates
representing such shares are surrendered to the Company or its transfer agent;
provided, however, that the Company shall not be obligated to issue the shares
of Common Stock issuable upon conversion of any shares of Series D Preferred
Stock unless certificates evidencing such shares of Series D Preferred Stock are
either delivered to the Company or the holder notifies the Company that such
certificates have been lost, stolen, or destroyed, and executes an agreement
satisfactory to the Company to indemnify the Company from any loss incurred by
it in connection therewith. Upon the occurrence of the automatic conversion of
the Series D Preferred Stock pursuant to this Section 5, the holders of the
Series D Preferred Stock shall surrender the Preferred Stock Certificates
representing the Series D Preferred Stock for which the Mandatory Conversion
Date has occurred to the Company and the Company shall deliver the shares of
Common Stock issuable upon such conversion (in the same manner set forth in
Section 5(b)(ii)) to the holder within three (3) business days of the holder's
delivery of the applicable Preferred Stock Certificates.

               (d)  Conversion Price.

                    (i)   The term "Conversion Price" shall mean $.12 per share,
subject to adjustment under Section 5(e) hereof.

                    (ii)  The term "VWAP" shall mean the daily volume weighted
average price (based on a Trading Day from 9:30 a.m. to 4:00 p.m., eastern time)
of the Common Stock

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of the Company on the OTC Bulletin Board (or any successor thereto) as reported
by Bloomberg Financial LP using the AQR function.

               (e)  Adjustments of Conversion Price.

                    (i)  Adjustments for Stock Splits and Combinations. If the
Company shall at any time or from time to time after the Issuance Date, effect a
stock split of the outstanding Common Stock, the Conversion Price shall be
proportionately decreased. If the Company shall at any time or from time to time
after the Issuance Date, combine the outstanding shares of Common Stock, the
Conversion Price shall be proportionately increased. Any adjustments under this
Section 5(e)(i) shall be effective at the close of business on the date the
stock split or combination occurs.

                    (ii) Adjustments for Certain Dividends and Distributions. If
the Company shall at any time or from time to time after the Issuance Date, make
or issue or set a record date for the determination of holders of Common Stock
entitled to receive a dividend or other distribution payable in shares of Common
Stock, then, and in each event, the Conversion Price shall be decreased as of
the time of such issuance or, in the event such record date shall have been
fixed, as of the close of business on such record date, by multiplying, as
applicable, the Conversion Price then in effect by a fraction:

                         (1) the numerator of which shall be the total number of
shares of Common Stock issued and outstanding immediately prior to the time of
such issuance or the close of business on such record date; and

                         (2) the denominator of which shall be the total number
of shares of Common Stock issued and outstanding immediately prior to the time
of such issuance or the close of business on such record date plus the number of
shares of Common Stock issuable in payment of such dividend or distribution.

                    (iii) Adjustment for Other Dividends and Distributions. If
the Company shall at any time or from time to time after the Issuance Date, make
or issue or set a record date for the determination of holders of Common Stock
entitled to receive a dividend or other distribution payable in other than
shares of Common Stock, then, and in each event, an appropriate revision to the
applicable Conversion Price shall be made and provision shall be made (by
adjustments of the Conversion Price or otherwise) so that the holders of Series
D Preferred Stock shall receive upon conversions thereof, in addition to the
number of shares of Common Stock receivable thereon, the number of securities of
the Company which they would have received had their Series D Preferred Stock
been converted into Common Stock on the date of such event and had thereafter,
during the period from the date of such event to and including the Conversion
Date, retained such securities (together with any distributions payable thereon
during such period), giving application to all adjustments called for during
such period under this Section 5(e)(iii) with respect to the rights of the
holders of the Series D Preferred Stock.

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                         (iv) Adjustments for Reclassification, Exchange or
Substitution. If the Common Stock issuable upon conversion of the Series D
Preferred Stock at any time or from time to time after the Issuance Date shall
be changed to the same or different number of shares of any class or classes of
stock, whether by reclassification, exchange, substitution or otherwise (other
than by way of a stock split or combination of shares or stock dividends
provided for in Sections 5(e)(i), (ii) and (iii), or a reorganization, merger,
consolidation, or sale of assets provided for in Section 5(e)(v)), then, and in
each event, an appropriate revision to the Conversion Price shall be made and
provisions shall be made (by adjustments of the Conversion Price or otherwise)
so that the holder of each share of Series D Preferred Stock shall have the
right thereafter to convert such share of Series D Preferred Stock into the kind
and amount of shares of stock and other securities receivable upon
reclassification, exchange, substitution or other change, by holders of the
number of shares of Common Stock into which such share of Series D Preferred
Stock might have been converted immediately prior to such reclassification,
exchange, substitution or other change, all subject to further adjustment as
provided herein.

                         (v) Adjustments for Reorganization, Merger,
Consolidation or Sales of Assets. If at any time or from time to time after the
Issuance Date there shall be a capital reorganization of the Company (other than
by way of a stock split or combination of shares or stock dividends or
distributions provided for in Section 5(e)(i), (ii) and (iii), or a
reclassification, exchange or substitution of shares provided for in Section
5(e)(iv)), or a merger or consolidation of the Company with or into another
corporation, or the sale of all or substantially all of the Company's properties
or assets to any other person (an "Organic Change"), then as a part of such
Organic Change an appropriate revision to the Conversion Price shall be made and
provision shall be made (by adjustments of the Conversion Price or otherwise) so
that the holder of each share of Series D Preferred Stock shall have the right
thereafter to convert such share of Series D Preferred Stock into the kind and
amount of shares of stock and other securities or property of the Company or any
successor corporation resulting from Organic Change. In any such case,
appropriate adjustment shall be made in the application of the provisions of
this Section 5(e)(v) with respect to the rights of the holders of the Series D
Preferred Stock after the Organic Change to the end that the provisions of this
Section 5(e)(v) (including any adjustment in the Conversion Price then in effect
and the number of shares of stock or other securities deliverable upon
conversion of the Series D Preferred Stock) shall be applied after that event in
as nearly an equivalent manner as may be practicable.

                         (vi) Adjustments for Issuance of Additional Shares of
Common Stock. If the Company, at any time after the Issuance Date and prior to
the first year following the Effectiveness Date (as defined in the Purchase
Agreements), shall issue any additional shares of Common Stock (otherwise than
as provided in the foregoing subsections (i) through (v) of this Section 5(e))
(the "Additional Shares of Common Stock"), at a price per share less than the
Conversion Price or without consideration, then the Conversion Price upon each
such issuance shall be adjusted to that price (rounded to the nearest cent)
determined by multiplying the Conversion Price by a fraction:

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                         (1) the numerator of which shall be equal to the sum of
(A) the number of shares of Common Stock outstanding immediately prior to the
issuance of such Additional Shares of Common Stock plus (B) the number of shares
of Common Stock (rounded to the nearest whole share) which the aggregate
consideration for the total number of such Additional Shares of Common Stock so
issued would purchase at a price per share equal to the greater of the Per Share
Market Value then in effect and the Conversion Price, and

                         (2) the denominator of which shall be equal to the
number of shares of Common Stock outstanding immediately after the issuance of
such Additional Shares of Common Stock.

The provisions of this subsection (vi) shall not apply under any of the
circumstances for which an adjustment is provided in subsections (i), (ii),
(iii), (iv) or (v) of this Section 5(e). No adjustment of the Conversion Price
shall be made under this subsection (e)(vi) upon the issuance of any Additional
Shares of Common Stock which are issued pursuant to any Common Stock Equivalent
(as such term is defined hereinafter) if upon the issuance of such Common Stock
Equivalent (x) any adjustment shall have been made pursuant to subsection (vii)
of this Section 5(e) or (y) no adjustment was required pursuant to subsection
(vii) of this Section 5(e). No adjustment of the Conversion Price shall be made
under this subsection (vi) in an amount less than $.01 per share, but any such
lesser adjustment shall be carried forward and shall be made at the time and
together with the next subsequent adjustment, if any, which together with any
adjustments so carried forward shall amount to $.01 per share or more; provided
that upon any adjustment of the Conversion Price as a result of any dividend or
distribution payable in Common Stock or Convertible Securities (as defined
below) or the reclassification, subdivision or combination of Common Stock into
a greater or smaller number of shares, the foregoing figure of $.01 per share
(or such figure as last adjusted) shall be adjusted (to the nearest one-half
cent) in proportion to the adjustment in the Conversion Price.

                         (vii) Issuance of Common Stock Equivalents. If the
Company, at any time after the Issuance Date, shall issue any securities
convertible into or exchangeable for, directly or indirectly, Common Stock
("Convertible Securities"), other than the Series D Preferred Stock, or any
rights or warrants or options to purchase any such Common Stock or Convertible
Securities, shall be issued or sold (collectively, the "Common Stock
Equivalents") and the price per share for which Additional Shares of Common
Stock may be issuable thereafter pursuant to such Common Stock Equivalent shall
be less than the Conversion Price then in effect, then the Conversion Price upon
each such issuance or amendment shall be adjusted as provided in the first
sentence of subsection (vi) of this Section 5(e) on the basis that (1) the
maximum number of Additional Shares of Common Stock issuable pursuant to all
such Common Stock Equivalents shall be deemed to have been issued (whether or
not such Common Stock Equivalents are actually then exercisable, convertible or
exchangeable in whole or in part) as of the earlier of (A) the date on which the
Company shall enter into a firm contract for the issuance of such Common Stock
Equivalent, or (B) the date of actual issuance of such Common Stock Equivalent,
and (2) the aggregate consideration for such maximum number of Additional Shares
of Common Stock shall be deemed to be the minimum consideration received or
receivable by

                                      -10-
<PAGE>

the Company for the issuance of such Additional Shares of Common Stock pursuant
to such Common Stock Equivalent. No adjustment of the Conversion Price shall be
made under this subsection (vii) upon the issuance of any Convertible Security
which is issued pursuant to the exercise of any warrants or other subscription
or purchase rights therefor, if any adjustment shall previously have been made
to the exercise price of such warrants then in effect upon the issuance of such
warrants or other rights pursuant to this subsection (vii).

                           (viii) Consideration for Stock. In case any shares of
Common Stock or Convertible Securities other than the Series D Preferred Stock,
or any rights or warrants or options to purchase any such Common Stock or
Convertible Securities, shall be issued or sold:

                                    (1) in connection with any merger or
consolidation in which the Company is the surviving corporation (other than any
consolidation or merger in which the previously outstanding shares of Common
Stock of the Company shall be changed to or exchanged for the stock or other
securities of another corporation), the amount of consideration therefore shall
be, deemed to be the fair value, as determined reasonably and in good faith by
the Board of Directors of the Company, of such portion of the assets and
business of the nonsurviving corporation as such Board may determine to be
attributable to such shares of Common Stock, Convertible Securities, rights or
warrants or options, as the case may be; or

                                    (2) in the event of any consolidation or
merger of the Company in which the Company is not the surviving corporation or
in which the previously outstanding shares of Common Stock of the Company shall
be changed into or exchanged for the stock or other securities of another
corporation, or in the event of any sale of all or substantially all of the
assets of the Company for stock or other securities of any corporation, the
Company shall be deemed to have issued a number of shares of its Common Stock
for stock or securities or other property of the other corporation computed on
the basis of the actual exchange ratio on which the transaction was predicated,
and for a consideration equal to the fair market value on the date of such
transaction of all such stock or securities or other property of the other
corporation. If any such calculation results in adjustment of the applicable
Conversion Price, or the number of shares of Common Stock issuable upon
conversion of the Series D Preferred Stock, the determination of the applicable
Conversion Price or the number of shares of Common Stock issuable upon
conversion of the Series D Preferred Stock immediately prior to such merger,
consolidation or sale, shall be made after giving effect to such adjustment of
the number of shares of Common Stock issuable upon conversion of the Series D
Preferred Stock.

                           (ix) Record Date. In case the Company shall take
record of the holders of its Common Stock or any other Preferred Stock for the
purpose of entitling them to subscribe for or purchase Common Stock or
Convertible Securities, then the date of the issue or sale of the shares of
Common Stock shall be deemed to be such record date.

                  (f) Certain Issues Excepted. Notwithstanding anything in
Section 5(e) hereof to the contrary, the Company shall not be required to make
any adjustment of the Conversion Price or the number of shares of Common Stock
issuable upon conversion of the Series D

                                      -11-
<PAGE>

Preferred Stock upon the grant after the Issuance Date of, or the exercise after
the Issuance Date of, (1) shares of Common Stock to be issued to strategic
partners and/or in connection with a strategic merger or acquisition; (2) shares
of Common Stock or the issuance of options to purchase shares of Common Stock to
employees, officers, directors, consultants and vendors in accordance with the
Company's equity incentive policies in an aggregate amount not to exceed five
percent (5%) of the Company's issued and outstanding shares on a fully diluted
basis as of the date hereof; and (3) the issuance of securities pursuant to the
conversion or exercise of convertible or exercisable securities issued or
outstanding prior to the date hereof.

                  (g) No Impairment. The Company shall not, by amendment of its
Certificate of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed hereunder by the Company, but will at all
times in good faith, assist in the carrying out of all the provisions of this
Section 5 and in the taking of all such action as may be necessary or
appropriate in order to protect the Conversion Rights of the holders of the
Series D Preferred Stock against impairment. In the event a holder shall elect
to convert any shares of Series D Preferred Stock as provided herein, the
Company cannot refuse conversion based on any claim that such holder or any one
associated or affiliated with such holder has been engaged in any violation of
law, unless, an injunction from a court, on notice, restraining and/or adjoining
conversion of all or of said shares of Series D Preferred Stock shall have been
issued and the Company posts a surety bond for the benefit of such holder in the
amount of the difference between the Conversion Price and the VWAP on the
trading day preceding the date of the attempted conversion multiplied by the
number of shares of Series D Preferred Stock sought to be converted, which bond
shall remain in effect until the completion of arbitration/litigation of the
dispute and the proceeds of which shall be payable to such holder in the event
it obtains judgment.

                  (h) Certificates as to Adjustments. Upon occurrence of each
adjustment or readjustment of the Conversion Price or number of shares of Common
Stock issuable upon conversion of the Series D Preferred Stock pursuant to this
Section 5, the Company at its expense shall promptly compute such adjustment or
readjustment in accordance with the terms hereof and furnish to each holder of
such Series D Preferred Stock a certificate setting forth such adjustment and
readjustment, showing in detail the facts upon which such adjustment or
readjustment is based. The Company shall, upon written request of the holder of
such affected Series D Preferred Stock, at any time, furnish or cause to be
furnished to such holder a like certificate setting forth such adjustments and
readjustments, the Conversion Price in effect at the time, and the number of
shares of Common Stock and the amount, if any, of other securities or property
which at the time would be received upon the conversion of a share of such
Series D Preferred Stock. Notwithstanding the foregoing, the Company shall not
be obligated to deliver a certificate unless such certificate would reflect an
increase or decrease of at least one percent of such adjusted amount.

                  (i) Issue Taxes. The Company shall pay any and all issue and
other taxes, excluding federal, state or local income taxes, that may be payable
in respect of any issue or

                                      -12-
<PAGE>

delivery of shares of Common Stock on conversion of shares of Series D Preferred
Stock pursuant thereto; provided, however, that the Company shall not be
obligated to pay any transfer taxes resulting from any transfer requested by any
holder in connection with any such conversion.

                  (j) Notices. All notices and other communications hereunder
shall be in writing and shall be deemed given if delivered personally or by
facsimile or three (3) business days following being mailed by certified or
registered mail, postage prepaid, return-receipt requested, addressed to the
holder of record at its address appearing on the books of the Company. The
Company will give written notice to each holder of Series D Preferred Stock at
least twenty (20) days prior to the date on which the Company closes its books
or takes a record (I) with respect to any dividend or distribution upon the
Common Stock, (II) with respect to any pro rata subscription offer to holders of
Common Stock or (III) for determining rights to vote with respect to any Organic
Change, dissolution, liquidation or winding-up and in no event shall such notice
be provided to such holder prior to such information being made known to the
public. The Company will also give written notice to each holder of Series D
Preferred Stock at least twenty (20) days prior to the date on which any Organic
Change, dissolution, liquidation or winding-up will take place and in no event
shall such notice be provided to such holder prior to such information being
made known to the public.

                  (k) Fractional Shares. No fractional shares of Common Stock
shall be issued upon conversion of the Series D Preferred Stock. In lieu of any
fractional shares to which the holder would otherwise be entitled, the Company
shall pay cash equal to the product of such fraction multiplied by the average
VWAP of the Common Stock for the five (5) consecutive trading days immediately
preceding the Voluntary Conversion Date or Mandatory Conversion Date, as
applicable.

                  (l) Reservation of Common Stock. The Company shall, so long as
any shares of Series D Preferred Stock are outstanding, reserve and keep
available out of its authorized and unissued Common Stock, solely for the
purpose of effecting the conversion of the Series D Preferred Stock, such number
of shares of Common Stock as shall from time to time be sufficient to effect the
conversion of all of the Series D Preferred Stock then outstanding; provided
that the number of shares of Common Stock so reserved shall at no time be less
than 100% of the number of shares of Common Stock for which the shares of Series
D Preferred Stock are at any time convertible. The initial number of shares of
Common Stock reserved for conversions of the Series D Preferred Stock and each
increase in the number of shares so reserved shall be allocated pro rata among
the holders of the Series D Preferred Stock based on the number of shares of
Series D Preferred Stock held by each holder at the time of issuance of the
Series D Preferred Stock or increase in the number of reserved shares, as the
case may be. In the event a holder shall sell or otherwise transfer any of such
holder's shares of Series D Preferred Stock, each transferee shall be allocated
a pro rata portion of the number of reserved shares of Common Stock reserved for
such transferor. Any shares of Common Stock reserved and which remain allocated
to any person or entity which does not hold any shares of Series D Preferred
Stock shall be allocated to the remaining holders of Series D Preferred Stock,
pro rata

                                      -13-
<PAGE>

based on the number of shares of Series D Preferred Stock then held by such
holder. The Company shall, from time to time in accordance with the Delaware
General Corporation Law, as amended, increase the authorized number of shares of
Common Stock if at any time the unissued number of authorized shares shall not
be sufficient to satisfy the Company's obligations under this Section 5(k).

                  (m) Retirement of Series D Preferred Stock. Conversion of
Series D Preferred Stock shall be deemed to have been effected on the applicable
Voluntary Conversion Date or Mandatory Conversion Date, and such date is
referred to herein as the "Conversion Date". Upon conversion of only a portion
of the number of shares of Series D Preferred Stock represented by a certificate
surrendered for conversion, the Company shall issue and deliver to such holder
at the expense of the Company, a new certificate covering the number of shares
of Series D Preferred Stock representing the unconverted portion of the
certificate so surrendered as required by Section 5(b)(ii).

                  (n) Regulatory Compliance. If any shares of Common Stock to be
reserved for the purpose of conversion of Series D Preferred Stock require
registration or listing with or approval of any governmental authority, stock
exchange or other regulatory body under any federal or state law or regulation
or otherwise before such shares may be validly issued or delivered upon
conversion, the Company shall, at its sole cost and expense, in good faith and
as expeditiously as possible, endeavor to secure such registration, listing or
approval, as the case may be.

         6. No Preemptive Rights. Except as provided in Section 5 hereof and in
the Purchase Agreements, no holder of the Series D Preferred Stock shall be
entitled to rights to subscribe for, purchase or receive any part of any new or
additional shares of any class, whether now or hereinafter authorized, or of
bonds or debentures, or other evidences of indebtedness convertible into or
exchangeable for shares of any class, but all such new or additional shares of
any class, or any bond, debentures or other evidences of indebtedness
convertible into or exchangeable for shares, may be issued and disposed of by
the Board of Directors on such terms and for such consideration (to the extent
permitted by law), and to such person or persons as the Board of Directors in
their absolute discretion may deem advisable.

         7. Conversion Restrictions.

                  (a) Notwithstanding anything to the contrary set forth in
Section 5 of this Certificate of Designation, at no time may a holder of shares
of Series D Preferred Stock convert shares of the Series D Preferred Stock if
the number of shares of Common Stock to be issued pursuant to such conversion
would exceed, when aggregated with all other shares of Common Stock owned by
such holder at such time, the number of shares of Common Stock which would
result in such holder owning more than 4.99% of all of the Common Stock
outstanding at such time; provided, however, that upon a holder of Series D
Preferred Stock providing the Company with sixty-one (61) days notice (pursuant
to Section 4(i) hereof) (the "Waiver Notice") that such holder would like to
waive Section 7(a) of this Certificate of Designation with regard to any or

                                      -14-
<PAGE>

all shares of Common Stock issuable upon conversion of Series D Preferred Stock,
this Section 7(a) shall be of no force or effect with regard to those shares of
Series D Preferred Stock referenced in the Waiver Notice; provided, further,
that this provision shall be of no further force or effect during the sixty-one
(61) days immediately preceding the Mandatory Conversion Date.

                  (b) Notwithstanding anything to the contrary set forth in
Section 5 of this Certificate of Designation, at no time may a holder of shares
of Series D Preferred Stock convert shares of the Series D Preferred Stock if
the number of shares of Common Stock to be issued pursuant to such conversion
would exceed, when aggregated with all other shares of Common Stock owned by
such holder at such time, would result in such holder beneficially owning (as
determined in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended, and the rules thereunder) in excess of 9.999% of the then
issued and outstanding shares of Common Stock outstanding at such time;
provided, however, that upon a holder of Series D Preferred Stock providing the
Company with a Waiver Notice that such holder would like to waive Section 7(b)
of this Certificate of Designation with regard to any or all shares of Common
Stock issuable upon conversion of Series D Preferred Stock, this Section 7(b)
shall be of no force or effect with regard to those shares of Series D Preferred
Stock referenced in the Waiver Notice; provided, further, that this provision
shall be of no further force or effect during the sixty-one (61) days
immediately preceding the Mandatory Conversion Date.

         8. Redemption.

           (a)      Redemption Option Upon Major Transaction. In addition to all
other rights of the holders of Series D Preferred Stock contained herein,
simultaneous with the occurrence of a Major Transaction (as defined below), each
holder of Series D Preferred Stock shall have the right, at such holder's
option, to require the Company to redeem all or a portion of such holder's
shares of Series D Preferred Stock at a price per share of Series D Preferred
Stock equal to 100% of the Liquidation Preference Amount, plus any accrued but
unpaid dividends and liquidated damages (the "Major Transaction Redemption
Price"); provided that the Company shall have the sole option to pay the Major
Transaction Redemption Price in cash or shares of Common Stock. If the Company
elects to pay the Major Transaction Redemption Price in shares of Common Stock,
the price per share shall be based upon the Conversion Price then in effect on
the day preceding the date of delivery of the Notice of Redemption at Option of
Buyer Upon Major Transaction (as hereafter defined).

                  (b) Redemption Option Upon Triggering Event. In addition to
all other rights of the holders of Series D Preferred Stock contained herein,
(i) after a Triggering Event (as defined below) described in clauses (i), (ii)
and (iii) of Section 8(d), each holder of Series D Preferred Stock shall have
the right, at such holder's option, to require the Company to redeem all or a
portion of such holder's shares of Series D Preferred Stock at a price per share
of Series D Preferred Stock equal to 100% of the Liquidation Preference Amount,
plus any accrued but unpaid dividends and liquidated damages, and (ii) after a
Triggering Event described in clauses (iv) and (v) of Section 8(d), each holder
of Series D Preferred Stock shall have the right, at such holder's option, to
require the Company to redeem all or a portion of such holder's shares of

                                      -15-
<PAGE>

Series D Preferred Stock at a price per share of Series D Preferred Stock equal
to 100% of the Liquidation Preference Amount payable only in cash, plus any
accrued but unpaid dividends and liquidated damages (the "Triggering Event
Redemption Price" and, collectively with the "Major Transaction Redemption
Price," the "Redemption Price"); provided that with respect to the Triggering
Events described in clauses (i), (ii) and (iii) of Section 8(d), the Company
shall have the sole option to pay the Triggering Event Redemption Price in cash
or shares of Common Stock. If the Company elects to pay the Triggering Event
Redemption Price in shares of Common Stock, the price per share shall be based
upon the Conversion Price then in effect on the day preceding the date of
delivery of the Notice of Redemption at Option of Buyer Upon Triggering Event
(as hereafter defined).

                  (c) "Major Transaction". A "Major Transaction" shall be deemed
to have occurred at such time as any of the following events:

                           (i) the consolidation, merger or other business
combination of the Company with or into another Person (other than (A) pursuant
to a migratory merger effected solely for the purpose of changing the
jurisdiction of incorporation of the Company or (B) a consolidation, merger or
other business combination in which holders of the Company's voting power
immediately prior to the transaction continue after the transaction to hold,
directly or indirectly, the voting power of the surviving entity or entities
necessary to elect a majority of the members of the board of directors (or their
equivalent if other than a corporation) of such entity or entities).

                           (ii) the sale or transfer of all or substantially all
of the Company's assets;

                           (iii) consummation of a purchase, tender or exchange
offer made to the holders of more than 30% of the outstanding shares of Common
Stock; or

                           (iv) consummation of a transaction whereby the
Company is no longer a reporting company pursuant to the Securities Exchange Act
of 1934, as amended.

                  (d) "Triggering Event". A "Triggering Event" shall be deemed
to have occurred at such time as any of the following events:

                           (i) so long as any shares of Series D Preferred Stock
are outstanding, the effectiveness of the Registration Statement lapses for any
reason (including, without limitation, the issuance of a stop order) or is
unavailable to the holder of the Series D Preferred Stock for sale of the shares
of Common Stock, and such lapse or unavailability continues for a period of ten
consecutive trading days, provided that the cause of such lapse or
unavailability is not due to factors solely within the control of such holder of
Series D Preferred Stock;

                           (ii) the suspension from listing or the failure of
the Common Stock to be listed on the OTC Bulletin Board (or any successor
thereto), the Nasdaq National Market, the

                                      -16-
<PAGE>

Nasdaq SmallCap Market, The New York Stock Exchange, Inc. or The American Stock
Exchange, Inc., as applicable, for a period of five (5) consecutive days;

                           (iii) the Company's notice to any holder of Series D
Preferred Stock, including by way of public announcement, at any time, of its
inability to comply (including for any of the reasons described in Section 9) or
its intention not to comply with proper requests for conversion of any Series D
Preferred Stock into shares of Common Stock;

                           (iv) the Company's failure to comply with a
Conversion Notice tendered in accordance with the provisions of this Certificate
of Designation within ten (10) business days after the receipt by the Company of
the Conversion Notice and the Preferred Stock Certificates; or

                           (v) the Company breaches any representation,
warranty, covenant or other term or condition of the Purchase Agreements, this
Certificate of Designation or any other agreement, document, certificate or
other instrument delivered in connection with the transactions contemplated
thereby or hereby, except to the extent that such breach would not have a
Material Adverse Effect (as defined in the Purchase Agreements) and except, in
the case of a breach of a covenant which is curable, only if such breach
continues for a period of a least ten (10) days.

                  (e) Mechanics of Redemption at Option of Buyer Upon Major
Transaction. No sooner than fifteen (15) days nor later than ten (10) days prior
to the consummation of a Major Transaction, but not prior to the public
announcement of such Major Transaction, the Company shall deliver written notice
thereof via facsimile and overnight courier ("Notice of Major Transaction") to
each holder of Series D Preferred Stock. At any time after receipt of a Notice
of Major Transaction (or, in the event a Notice of Major Transaction is not
delivered at least ten (10) days prior to a Major Transaction, at any time
within ten (10) days prior to a Major Transaction), any holder of Series D
Preferred Stock then outstanding may require the Company to redeem, effective
immediately prior to the consummation of such Major Transaction, all of the
holder's Series D Preferred Stock then outstanding by delivering written notice
thereof via facsimile and overnight courier ("Notice of Redemption at Option of
Buyer Upon Major Transaction") to the Company, which Notice of Redemption at
Option of Buyer Upon Major Transaction shall indicate (i) the number of shares
of Series D Preferred Stock that such holder is electing to redeem and (ii) the
applicable Major Transaction Redemption Price, as calculated pursuant to Section
8(a) above.

                  (f) Mechanics of Redemption at Option of Buyer Upon Triggering
Event. Within one (1) day after the occurrence of a Triggering Event, the
Company shall deliver written notice thereof via facsimile and overnight courier
("Notice of Triggering Event") to each holder of Series D Preferred Stock. At
any time after the earlier of a holder's receipt of a Notice of Triggering Event
and such holder becoming aware of a Triggering Event, any holder of Series D
Preferred Stock then outstanding may require the Company to redeem all of the
Series D Preferred Stock by delivering written notice thereof via facsimile and
overnight courier ("Notice

                                      -17-
<PAGE>

of Redemption at Option of Buyer Upon Triggering Event") to the Company, which
Notice of Redemption at Option of Buyer Upon Triggering Event shall indicate (i)
the number of shares of Series D Preferred Stock that such holder is electing to
redeem and (ii) the applicable Triggering Event Redemption Price, as calculated
pursuant to Section 8(b) above.

                  (g) Payment of Redemption Price. Upon the Company's receipt of
a Notice(s) of Redemption at Option of Buyer Upon Triggering Event or a
Notice(s) of Redemption at Option of Buyer Upon Major Transaction from any
holder of Series D Preferred Stock, the Company shall immediately notify each
holder of Series D Preferred Stock by facsimile of the Company's receipt of such
Notice(s) of Redemption at Option of Buyer Upon Triggering Event or Notice(s) of
Redemption at Option of Buyer Upon Major Transaction and each holder which has
sent such a notice shall promptly submit to the Company such holder's Preferred
Stock Certificates which such holder has elected to have redeemed. Other than
with respect to the Triggering Events described in clauses (iv) and (v) of
Section 8(d), the Company shall have the sole option to pay the Redemption Price
in cash or shares of Common Stock in accordance with Sections 8(a) and (b) and
Section 9 of this Certificate of Designation. The Company shall deliver the
applicable Major Transaction Redemption Price immediately prior to the
consummation of the Major Transaction; provided that a holder's Preferred Stock
Certificates shall have been so delivered to the Company; provided further that
if the Company is unable to redeem all of the Series D Preferred Stock to be
redeemed, the Company shall redeem an amount from each holder of Series D
Preferred Stock being redeemed equal to such holder's pro-rata amount (based on
the number of shares of Series D Preferred Stock held by such holder relative to
the number of shares of Series D Preferred Stock outstanding) of all Series D
Preferred Stock being redeemed. If the Company shall fail to redeem all of the
Series D Preferred Stock submitted for redemption (other than pursuant to a
dispute as to the arithmetic calculation of the Redemption Price), in addition
to any remedy such holder of Series D Preferred Stock may have under this
Certificate of Designation and the Purchase Agreements, the applicable
Redemption Price payable in respect of such unredeemed Series D Preferred Stock
shall bear interest at the rate of 2.0% per month (prorated for partial months),
commencing, in the case of a Redemption at Option of Buyer Upon Major
Transaction, upon the closing of the Major Transaction triggering the Buyer's
option, until paid in full. Until the Company pays such unpaid applicable
Redemption Price in full to a holder of shares of Series D Preferred Stock
submitted for redemption, such holder shall have the option (the "Void Optional
Redemption Option") to, in lieu of redemption, require the Company to promptly
return to such holder(s) all of the shares of Series D Preferred Stock that were
submitted for redemption by such holder(s) under this Section 8 and for which
the applicable Redemption Price has not been paid, by sending written notice
thereof to the Company via facsimile (the "Void Optional Redemption Notice").
Upon the Company's receipt of such Void Optional Redemption Notice(s) and prior
to payment of the full applicable Redemption Price to such holder, (i) the
Notice(s) of Redemption at Option of Buyer Upon Major Transaction shall be null
and void with respect to those shares of Series D Preferred Stock submitted for
redemption and for which the applicable Redemption Price has not been paid, (ii)
the Company shall immediately return any Series D Preferred Stock submitted to
the Company by each holder for redemption under this Section 8(d) and for which
the applicable Redemption Price has not been paid and (iii) the Conversion Price
of such returned shares of

                                      -18-
<PAGE>

Series D Preferred Stock shall be adjusted to the lesser of (A) the Conversion
Price and (B) the VWAP during the period beginning on the date on which the
Notice(s) of Redemption of Option of Buyer Upon Major Transaction is delivered
to the Company and ending on the date on which the Void Optional Redemption
Notice(s) is delivered to the Company; provided that no adjustment shall be made
if such adjustment would result in an increase of the Conversion Price then in
effect. A holder's delivery of a Void Optional Redemption Notice and exercise of
its rights following such notice shall not effect the Company's obligations to
make any payments which have accrued prior to the date of such notice. Payments
provided for in this Section 8 shall have priority to payments to other
stockholders in connection with a Major Transaction.

                  (h) Company's Redemption Option. The Company may redeem all or
a portion of the Series D Preferred Stock outstanding upon ten (10) trading days
prior written notice (the "Company's Redemption Notice") at a price per share of
Series D Preferred Stock equal to 100% of the Liquidation Preference Amount plus
any liquidated damages; provided, that if a holder has delivered a Conversion
Notice to the Company or delivers a Conversion Notice within forty-eight (48)
business day hours of receipt of the Company's Redemption Notice, the shares of
Series D Preferred Stock designated to be redeemed may be converted by such
holder; provided further that if during the period between delivery of the
Company's Redemption Notice and the Redemption Date a holder shall become
entitled to deliver a Notice of Redemption at Option of Buyer Upon Major
Transaction, then the right of such holder shall take precedence over the
previously delivered Company Redemption Notice. The Company's Redemption Notice
shall state the date of redemption which date shall be the sixth (6th) day after
the Company has delivered the Company's Redemption Notice (the "Company's
Redemption Date"), the Company's Redemption Price and the number of shares to be
redeemed by the Company. The Company shall not send a Company's Redemption
Notice unless it has good and clear funds for a minimum of the amount it intends
to redeem in a bank account controlled by the Company; provided that if the
redemption is expected to be made contemporaneous with the closing of a public
underwritten offering of the Company, then the Company may not have good and
clear funds in the bank account at the time of the Company's Redemption Notice
and may not send any such Company's Redemption Notice earlier than the day
immediately prior to the date the public offering is priced. The Company shall
deliver the Company's Redemption Price to the holder(s) within five (5) business
days after the Company has delivered the Company's Redemption Notice, provided,
that if the holder(s) delivers a Conversion Notice before the Company's
Redemption Date, then the portion of the Company's Redemption Price which would
be paid to redeem the shares of Series D Preferred Stock covered by such
Conversion Notice shall be returned to the Company upon delivery of the Common
Stock issuable in connection with such Conversion Notice to the holder(s). On
the Redemption Date, the Company shall pay the Company's Redemption Price,
subject to any adjustment pursuant to the immediately preceding sentence, to the
holder(s) on a pro rata basis, provided, however, that upon receipt by the
Company of the Preferred Stock Certificates to be redeemed pursuant to this
Section 8(e), the Company shall, on the next business day following the date of
receipt by the Company of such Preferred Stock Certificates, pay the Company's
Redemption Price to the holder(s) on a pro rata basis. If the Company fails to
pay the Company's Redemption Price by the sixth (6th) business day after the
Company has delivered the Company's Redemption Notice

                                      -19-
<PAGE>

(or in the case of a public offering, the closing of the public offering), the
redemption will be declared null and void and the Company shall lose its right
to serve a Company's Redemption Notice in the future.

         9. Inability to Fully Convert.

                  (a) Holder's Option if Company Cannot Fully Convert. If, upon
the Company's receipt of a Conversion Notice or on the Mandatory Conversion
Date, the Company cannot issue shares of Common Stock registered for resale
under the Registration Statement for any reason, including, without limitation,
because the Company (w) does not have a sufficient number of shares of Common
Stock authorized and available, (x) failed to call the Stockholder Meeting
within the time period set forth in Section 7 hereof, (y) is otherwise
prohibited by applicable law or by the rules or regulations of any stock
exchange, interdealer quotation system or other self-regulatory organization
with jurisdiction over the Company or its securities from issuing all of the
Common Stock which is to be issued to a holder of Series D Preferred Stock
pursuant to a Conversion Notice or (z) fails to have a sufficient number of
shares of Common Stock registered for resale under the Registration Statement,
then the Company shall issue as many shares of Common Stock as it is able to
issue in accordance with such holder's Conversion Notice and pursuant to Section
5(b)(ii) above and, with respect to the unconverted Series D Preferred Stock,
the holder, solely at such holder's option, can elect, within five (5) business
days after receipt of notice from the Company thereof to:

                           (i) require the Company to redeem from such holder
those Series D Preferred Stock for which the Company is unable to issue Common
Stock in accordance with such holder's Conversion Notice ("Mandatory
Redemption") at a price per share equal to the Major Transaction Redemption
Price as of such Conversion Date (the "Mandatory Redemption Price"); provided
that the Company shall have the sole option to pay the Mandatory Redemption
Price in cash or shares of Common Stock.

                           (ii) if the Company's inability to fully convert
Series D Preferred Stock is pursuant to Section 9(a)(z) above, require the
Company to issue restricted shares of Common Stock in accordance with such
holder's Conversion Notice and pursuant to Section 5(b)(ii) above;

                           (iii) void its Conversion Notice and retain or have
returned, as the case may be, the shares of Series D Preferred Stock that were
to be converted pursuant to such holder's Conversion Notice (provided that a
holder's voiding its Conversion Notice shall not affect the Company's
obligations to make any payments which have accrued prior to the date of such
notice).

                  (b) Mechanics of Fulfilling Holder's Election. The Company
shall immediately send via facsimile to a holder of Series D Preferred Stock,
upon receipt of a facsimile copy of a Conversion Notice from such holder which
cannot be fully satisfied as described in Section 9(a) above, a notice of the
Company's inability to fully satisfy such holder's

                                      -20-
<PAGE>

Conversion Notice (the "Inability to Fully Convert Notice"). Such Inability to
Fully Convert Notice shall indicate (i) the reason why the Company is unable to
fully satisfy such holder's Conversion Notice, (ii) the number of Series D
Preferred Stock which cannot be converted and (iii) the applicable Mandatory
Redemption Price. Such holder shall notify the Company of its election pursuant
to Section 9(a) above by delivering written notice via facsimile to the Company
("Notice in Response to Inability to Convert").

                  (c) Payment of Redemption Price. If such holder shall elect to
have its shares redeemed pursuant to Section 9(a)(i) above, the Company shall
pay the Mandatory Redemption Price in cash to such holder within thirty (30)
days of the Company's receipt of the holder's Notice in Response to Inability to
Convert, provided that prior to the Company's receipt of the holder's Notice in
Response to Inability to Convert the Company has not delivered a notice to such
holder stating, to the satisfaction of the holder, that the event or condition
resulting in the Mandatory Redemption has been cured and all Conversion Shares
issuable to such holder can and will be delivered to the holder in accordance
with the terms of Section 2(g). If the Company shall fail to pay the applicable
Mandatory Redemption Price to such holder on a timely basis as described in this
Section 9(c) (other than pursuant to a dispute as to the determination of the
arithmetic calculation of the Redemption Price), in addition to any remedy such
holder of Series D Preferred Stock may have under this Certificate of
Designation and the Purchase Agreements, such unpaid amount shall bear interest
at the rate of 2.0% per month (prorated for partial months) until paid in full.
Until the full Mandatory Redemption Price is paid in full to such holder, such
holder may (i) void the Mandatory Redemption with respect to those Series D
Preferred Stock for which the full Mandatory Redemption Price has not been paid,
(ii) receive back such Series D Preferred Stock, and (iii) require that the
Conversion Price of such returned Series D Preferred Stock be adjusted to the
lesser of (A) the Conversion Price and (B) the lowest VWAP during the period
beginning on the Conversion Date and ending on the date the holder voided the
Mandatory Redemption.

                  (d) Pro-rata Conversion and Redemption. In the event the
Company receives a Conversion Notice from more than one holder of Series D
Preferred Stock on the same day and the Company can convert and redeem some, but
not all, of the Series D Preferred Stock pursuant to this Section 9, the Company
shall convert and redeem from each holder of Series A Convertible Preferred
Stock electing to have Series D Preferred Stock converted and redeemed at such
time an amount equal to such holder's pro-rata amount (based on the number
shares of Series D Preferred Stock held by such holder relative to the number
shares of Series D Preferred Stock outstanding) of all shares of Series D
Preferred Stock being converted and redeemed at such time.

         10. Vote to Change the Terms of or Issue Preferred Stock. The
affirmative vote at a meeting duly called for such purpose or the written
consent without a meeting, of the holders of not less than three-fourths (3/4)
of the then outstanding shares of Series D Preferred Stock, shall be required
(a) for any change to this Certificate of Designation or the Company's
Certificate of Incorporation which would amend, alter, change or repeal any of
the powers, designations,

                                      -21-
<PAGE>

preferences and rights of the Series D Preferred Stock or (b) for the issuance
of shares of Series D Preferred Stock other than pursuant to the Purchase
Agreements.

         11. Lost or Stolen Certificates. Upon receipt by the Company of
evidence satisfactory to the Company of the loss, theft, destruction or
mutilation of any Preferred Stock Certificates representing the shares of Series
D Preferred Stock, and, in the case of loss, theft or destruction, of any
indemnification undertaking by the holder to the Company and, in the case of
mutilation, upon surrender and cancellation of the Preferred Stock
Certificate(s), the Company shall execute and deliver new preferred stock
certificate(s) of like tenor and date; provided, however, the Company shall not
be obligated to re-issue Preferred Stock Certificates if the holder
contemporaneously requests the Company to convert such shares of Series D
Preferred Stock into Common Stock.

         12. Remedies, Characterizations, Other Obligations, Breaches and
Injunctive Relief. The remedies provided in this Certificate of Designation
shall be cumulative and in addition to all other remedies available under this
Certificate of Designation, at law or in equity (including a decree of specific
performance and/or other injunctive relief), no remedy contained herein shall be
deemed a waiver of compliance with the provisions giving rise to such remedy and
nothing herein shall limit a holder's right to pursue actual damages for any
failure by the Company to comply with the terms of this Certificate of
Designation. Amounts set forth or provided for herein with respect to payments,
conversion and the like (and the computation thereof) shall be the amounts to be
received by the holder thereof and shall not, except as expressly provided
herein, be subject to any other obligation of the Company (or the performance
thereof). The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the holders of the Series D Preferred
Stock and that the remedy at law for any such breach may be inadequate. The
Company therefore agrees that, in the event of any such breach or threatened
breach, the holders of the Series D 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.

         13. Specific Shall Not Limit General; Construction. No specific
provision contained in this Certificate of Designation shall limit or modify any
more general provision contained herein. This Certificate of Designation shall
be deemed to be jointly drafted by the Company and all initial purchasers of the
Series D Preferred Stock and shall not be construed against any person as the
drafter hereof.

         14. Failure or Indulgence Not Waiver. No failure or delay on the part
of a holder of Series D Preferred Stock in the exercise of any power, right or
privilege hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privilege.

                                      -22-
<PAGE>

         IN WITNESS WHEREOF, the undersigned has executed and subscribed this
Certificate and does affirm the foregoing as true this 30th day of September,
2002.

                                           THE VIALINK COMPANY

                                       By: /s/ Robert I. Noe
                                           -------------------------------------
                                           Name:    Robert I. Noe
                                           Title:   President

                                      -23-
<PAGE>

                                                                       EXHIBIT I
                               THE VIALINK COMPANY
                                CONVERSION NOTICE

Reference is made to the Certificate of Designation of the Relative Rights and
Preferences of the Series D Preferred Stock of The viaLink Company (the
"Certificate of Designation"). In accordance with and pursuant to the
Certificate of Designation, the undersigned hereby elects to convert the number
of shares of Series D Preferred Stock, par value $.001 per share (the "Preferred
Shares"), of The viaLink Company, a Delaware corporation (the "Company"),
indicated below into shares of Common Stock, par value $.001 per share (the
"Common Stock"), of the Company, by tendering the stock certificate(s)
representing the share(s) of Preferred Shares specified below as of the date
specified below.

         Date of Conversion:
                                             -----------------------------------

         Number of Preferred Shares to be converted:

         Stock certificate no(s). of Preferred Shares to be converted:
                                                                       ---------

The Common Stock have been sold pursuant to the Registration Statement (as
defined in the Purchase Agreements):

                          YES ____                NO____

Please confirm the following information:

         Conversion Price:
                          ------------------------------------------------------

         Number of shares of Common Stock
         to be issued:
                      ----------------------------------------------------------

Please issue the Common Stock into which the Preferred Shares are being
converted and, if applicable, any check drawn on an account of the Company in
the following name and to the following address:

         Issue to:
                           -----------------------------------------------------

         Facsimile Number:
                           -----------------------------------------------------

         Authorization:
                           -----------------------------------------------------
                            By:
                                ------------------------------------------------
                            Title:
                                   ---------------------------------------------

         Dated:

                                 PRICES ATTACHED

                                      -24-<PAGE>
                                                                    Exhibit 4.3

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED
OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS OR THE VIALINK COMPANY SHALL HAVE RECEIVED AN
OPINION OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES
ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT
REQUIRED.

                          SERIES D WARRANT TO PURCHASE

                             SHARES OF COMMON STOCK

                                       OF

                               THE VIALINK COMPANY

                           Expires September 30, 2002

No.: W-D-__                                        Number of Shares: ___________
Date of Issuance: September 30, 2002

         FOR VALUE RECEIVED, subject to the provisions hereinafter set forth,
the undersigned, The viaLink Company, a Delaware corporation (together with its
successors and assigns, the "Issuer"), hereby certifies that
_______________________________ or its registered assigns is entitled to
subscribe for and purchase, during the period specified in this Series D
Warrant, up to ____________________________________ (_____________) shares
(subject to adjustment as hereinafter provided) of the duly authorized, validly
issued, fully paid and non-assessable Common Stock of the Issuer, at an exercise
price per share equal to the Warrant Price then in effect, subject, however, to
the provisions and upon the terms and conditions hereinafter set forth.
Capitalized terms used in this Warrant and not otherwise defined herein shall
have the respective meanings specified in Section 8 hereof.

         1. Term. The right to subscribe for and purchase shares of Warrant
Stock represented hereby shall commence on September 30, 2002 and shall expire
at 5:00 p.m., eastern time, on October 2, 2002 (such period being the "Term").

         2. Method of Exercise Payment; Issuance of New Warrant; Transfer and
Exchange.

         (a) Time of Exercise. The purchase rights represented by this Warrant
may be exercised in whole or in part during the Term commencing on September 30,
2002 and expiring on October 2, 2002.

                                      -1-
<PAGE>

         (b) Method of Exercise. The Holder hereof may exercise this Warrant, in
whole or in part, by the surrender of this Warrant (with the exercise form
attached hereto duly executed) at the principal office of the Issuer, and by the
payment to the Issuer of an amount of consideration therefor equal to the
Warrant Price in effect on the date of such exercise multiplied by the number of
shares of Warrant Stock with respect to which this Warrant is then being
exercised, payable at such Holder's election (i) by certified or official bank
check or by wire transfer to an account designated by the Issuer, (ii) by
"cashless exercise" in accordance with the provisions of subsection (c) of this
Section 2, but only when a registration statement under Securities Act
qualifying a public offering of the Warrant Stock is not then in effect, or
(iii) by a combination of the foregoing methods of payment selected by the
Holder of this Warrant.

         (c) Cashless Exercise. Notwithstanding any provisions herein to the
contrary, if the Per Share Market Value of one share of Common Stock is greater
than the Warrant Price (at the date of calculation as set forth below), in lieu
of exercising this Warrant by payment of cash, the Holder may exercise this
Warrant by a cashless exercise and shall receive the number of shares of Common
Stock equal to an amount (as determined below) by surrender of this Warrant at
the principal office of the Issuer together with the properly endorsed Notice of
Exercise in which event the Issuer shall issue to the Holder a number of shares
of Common Stock computed using the following formula:

                  X = Y - (A)(Y)
                          ------
                            B

Where             X = the number of shares of Common Stock to be issued to the
                      Holder.

                  Y = the number of shares of Common Stock purchasable
                      upon exercise of all of the Warrant or, if only a
                      portion of the Warrant is being exercised, the
                      portion of the Warrant being exercised.

                  A = the Warrant Price.

                  B = the Per Share Market Value of one share of Common Stock.

         (d) Issuance of Stock Certificates. In the event of any exercise of the
rights represented by this Warrant in accordance with and subject to the terms
and conditions hereof, (i) certificates for the shares of Warrant Stock so
purchased shall be dated the date of such exercise and delivered to the Holder
hereof within a reasonable time, not exceeding three (3) Trading Days after such
exercise or, at the request of the Holder, issued and delivered to the
Depository Trust Company ("DTC") account on the Holder's behalf via the Deposit
Withdrawal Agent Commission System ("DWAC") within a reasonable time, not
exceeding three (3) Trading Days after such exercise, and the Holder hereof
shall be deemed for all purposes to be the Holder of the shares of Warrant Stock
so purchased as of the date of such exercise and (ii) unless this Warrant has
expired, a new Warrant representing the number of shares of Warrant Stock, if
any, with respect to which this Warrant shall not then have been exercised (less
any amount thereof which shall have been canceled in payment or partial payment
of the Warrant Price as

                                      -2-
<PAGE>

hereinabove provided) shall also be issued to the Holder hereof at the Issuer's
expense within such time.

         (e) Transferability of Warrant. Subject to Section 2(g), this Warrant
may be transferred by a Holder without the consent of the Issuer. If transferred
pursuant to this paragraph and subject to the provisions of subsection (g) of
this Section 2, this Warrant may be transferred on the books of the Issuer by
the Holder hereof in person or by duly authorized attorney, upon surrender of
this Warrant at the principal office of the Issuer, properly endorsed (by the
Holder executing an assignment in the form attached hereto) and upon payment of
any necessary transfer tax or other governmental charge imposed upon such
transfer. This Warrant is exchangeable at the principal office of the Issuer for
Warrants for the purchase of the same aggregate number of shares of Warrant
Stock, each new Warrant to represent the right to purchase such number of shares
of Warrant Stock as the Holder hereof shall designate at the time of such
exchange. All Warrants issued on transfers or exchanges shall be dated the
Original Issue Date and shall be identical with this Warrant except as to the
number of shares of Warrant Stock issuable pursuant hereto.

         (f) Continuing Rights of Holder. The Issuer will, at the time of or at
any time after each exercise of this Warrant, upon the request of the Holder
hereof, acknowledge in writing the extent, if any, of its continuing obligation
to afford to such Holder all rights to which such Holder shall continue to be
entitled after such exercise in accordance with the terms of this Warrant,
provided that if any such Holder shall fail to make any such request, the
failure shall not affect the continuing obligation of the Issuer to afford such
rights to such Holder.

         (g)      Compliance with Securities Laws.

                  (i) The Holder of this Warrant, by acceptance hereof,
         acknowledges that this Warrant or the shares of Warrant Stock to be
         issued upon exercise hereof are being acquired solely for the Holder's
         own account and not as a nominee for any other party, and for
         investment, and that the Holder will not offer, sell or otherwise
         dispose of this Warrant or any shares of Warrant Stock to be issued
         upon exercise hereof except pursuant to an effective registration
         statement, or an exemption from registration, under the Securities Act
         and any applicable state securities laws.

                  (ii) Except as provided in paragraph (iii) below, this Warrant
         and all certificates representing shares of Warrant Stock issued upon
         exercise hereof shall be stamped or imprinted with a legend in
         substantially the following form:

                  THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON
                  EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
                  ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR ANY STATE
                  SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
                  DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND
                  UNDER APPLICABLE STATE SECURITIES LAWS OR THE VIALINK

                                      -3-
<PAGE>

                  COMPANY SHALL HAVE RECEIVED AN OPINION OF ITS COUNSEL THAT
                  REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND
                  UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS
                  NOT REQUIRED.

                  (iii) The restrictions imposed by this subsection (e) upon the
         transfer of this Warrant or the shares of Warrant Stock to be purchased
         upon exercise hereof shall terminate (A) when such securities shall
         have been resold pursuant to an effective registration statement under
         the Securities Act, (B) upon the Issuer's receipt of an opinion of
         counsel, in form and substance reasonably satisfactory to the Issuer,
         addressed to the Issuer to the effect that such restrictions are no
         longer required to ensure compliance with the Securities Act and state
         securities laws or (C) upon the Issuer's receipt of other evidence
         reasonably satisfactory to the Issuer that such registration and
         qualification under the Securities Act and state securities laws are
         not required. Whenever such restrictions shall cease and terminate as
         to any such securities, the Holder thereof shall be entitled to receive
         from the Issuer (or its transfer agent and registrar), without expense
         (other than applicable transfer taxes, if any), new Warrants (or, in
         the case of shares of Warrant Stock, new stock certificates) of like
         tenor not bearing the applicable legend required by paragraph (ii)
         above relating to the Securities Act and state securities laws.

         3.      Stock Fully Paid; Reservation and Listing of Shares; Covenants.

         (a) Stock Fully Paid. The Issuer represents, warrants, covenants and
agrees that all shares of Warrant Stock which may be issued upon the exercise of
this Warrant or otherwise hereunder will, upon issuance, be duly authorized,
validly issued, fully paid and non-assessable and free from all taxes, liens and
charges created by or through Issuer. The Issuer further covenants and agrees
that during the period within which this Warrant may be exercised, the Issuer
will at all times have authorized and reserved for the purpose of the issue upon
exercise of this Warrant a sufficient number of shares of Common Stock to
provide for the exercise of this Warrant.

         (b) Reservation. If any shares of Common Stock required to be reserved
for issuance upon exercise of this Warrant or as otherwise provided hereunder
require registration or qualification with any governmental authority under any
federal or state law before such shares may be so issued, the Issuer will in
good faith use its best efforts as expeditiously as possible at its expense to
cause such shares to be duly registered or qualified. If the Issuer shall list
any shares of Common Stock on any securities exchange or market it will, at its
expense, list thereon, maintain and increase when necessary such listing, of,
all shares of Warrant Stock from time to time issued upon exercise of this
Warrant or as otherwise provided hereunder, and, to the extent permissible under
the applicable securities exchange rules, all unissued shares of Warrant Stock
which are at any time issuable hereunder, so long as any shares of Common Stock
shall be so listed. The Issuer will also so list on each securities exchange or
market, and will maintain such listing of, any other securities which the Holder
of this Warrant shall be entitled to receive upon the exercise of this Warrant
if at the time any securities of the same class shall be listed on such
securities exchange or market by the Issuer.

                                      -4-
<PAGE>

         (c) Covenants. The Issuer shall not by any action including, without
limitation, amending the Certificate of Incorporation or the by-laws of the
Issuer, or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other action, avoid or
seek to avoid the observance or performance of any of the terms of this Warrant,
but will at all times in good faith assist in the carrying out of all such terms
and in the taking of all such actions as may be necessary or appropriate to
protect the rights of the Holder hereof against dilution (to the extent
specifically provided herein) or impairment. Without limiting the generality of
the foregoing, the Issuer will (i) not permit the par value, if any, of its
Common Stock to exceed the then effective Warrant Price, (ii) not amend or
modify any provision of the Certificate of Incorporation or by-laws of the
Issuer in any manner that would adversely affect the rights of the Holders of
the Warrants, (iii) take all such action as may be reasonably necessary in order
that the Issuer may validly and legally issue fully paid and nonassessable
shares of Common Stock, free and clear of any liens, claims, encumbrances and
restrictions (other than as provided herein) upon the exercise of this Warrant,
and (iv) use its best efforts to obtain all such authorizations, exemptions or
consents from any public regulatory body having jurisdiction thereof as may be
reasonably necessary to enable the Issuer to perform its obligations under this
Warrant.

         (d) Loss, Theft, Destruction of Warrants. Upon receipt of evidence
satisfactory to the Issuer of the ownership of and the loss, theft, destruction
or mutilation of any Warrant and, in the case of any such loss, theft or
destruction, upon receipt of indemnity or security satisfactory to the Issuer
or, in the case of any such mutilation, upon surrender and cancellation of such
Warrant, the Issuer will make and deliver, in lieu of such lost, stolen,
destroyed or mutilated Warrant, a new Warrant of like tenor and representing the
right to purchase the same number of shares of Common Stock.

         4. Adjustment of Warrant Price and Warrant Share Number. The number of
shares of Common Stock for which this Warrant is exercisable, and the price at
which such shares may be purchased upon exercise of this Warrant, shall be
subject to adjustment from time to time as set forth in this Section 4. The
Issuer shall give the Holder notice of any event described below which requires
an adjustment pursuant to this Section 4 in accordance with Section 5.

         (a) Recapitalization, Reorganization, Reclassification, Consolidation,
Merger or Sale.

                  (i) In case the Issuer after the Original Issue Date shall do
         any of the following (each, a "Triggering Event"): (a) consolidate with
         or merge into any other Person and the Issuer shall not be the
         continuing or surviving corporation of such consolidation or merger, or
         (b) permit any other Person to consolidate with or merge into the
         Issuer and the Issuer shall be the continuing or surviving Person but,
         in connection with such consolidation or merger, any Capital Stock of
         the Issuer shall be changed into or exchanged for Securities of any
         other Person or cash or any other property, or (c) transfer all or
         substantially all of its properties or assets to any other Person, or
         (d) effect a capital reorganization or reclassification of its Capital
         Stock, then, and in the case of each such Triggering Event, proper
         provision shall be made so that, upon the basis and the terms and in
         the manner provided in this Warrant, the Holder of this Warrant shall
         be entitled

                                      -5-
<PAGE>

         upon the exercise hereof at any time after the consummation of such
         Triggering Event, to the extent this Warrant is not exercised prior to
         such Triggering Event, to receive at the Warrant Price in effect at the
         time immediately prior to the consummation of such Triggering Event in
         lieu of the Common Stock issuable upon such exercise of this Warrant
         prior to such Triggering Event, the Securities, cash and property to
         which such Holder would have been entitled upon the consummation of
         such Triggering Event if such Holder had exercised the rights
         represented by this Warrant immediately prior thereto, subject to
         adjustments (subsequent to such corporate action) as nearly equivalent
         as possible to the adjustments provided for elsewhere in this Section
         4.

                  (ii) Notwithstanding anything contained in this Warrant to the
         contrary, the Issuer will not effect any Triggering Event if, prior to
         the consummation thereof, each Person (other than the Issuer) which may
         be required to deliver any Securities, cash or property upon the
         exercise of this Warrant as provided herein shall assume, by written
         instrument delivered to, and reasonably satisfactory to, the Holder of
         this Warrant, (A) the obligations of the Issuer under this Warrant (and
         if the Issuer shall survive the consummation of such Triggering Event,
         such assumption shall be in addition to, and shall not release the
         Issuer from, any continuing obligations of the Issuer under this
         Warrant) and (B) the obligation to deliver to such Holder such shares
         of Securities, cash or property as, in accordance with the foregoing
         provisions of this subsection (a), such Holder shall be entitled to
         receive, and such Person shall have similarly delivered to such Holder
         an opinion of counsel for such Person, which counsel shall be
         reasonably satisfactory to such Holder, or in the alternative, a
         written acknowledgement executed by the President or Chief Financial
         Officer of the Company, stating that this Warrant shall thereafter
         continue in full force and effect and the terms hereof (including,
         without limitation, all of the provisions of this subsection (a)) shall
         be applicable to the Securities, cash or property which such Person may
         be required to deliver upon any exercise of this Warrant or the
         exercise of any rights pursuant hereto.

         (b) Stock Dividends, Subdivisions and Combinations. If at any time the
Issuer shall:

                           (i) take a record of the holders of its Common Stock
         for the purpose of entitling them to receive a dividend payable in, or
         other distribution of, shares of Common Stock,

                           (ii) subdivide its outstanding shares of Common Stock
         into a larger number of shares of Common Stock, or

                           (iii) combine its outstanding shares of Common Stock
         into a smaller number of shares of Common Stock,

then (1) the number of shares of Common Stock for which this Warrant is
exercisable immediately after the occurrence of any such event shall be adjusted
to equal the number of shares of Common Stock which a record holder of the same
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to the occurrence of such event would own or be entitled to
receive after the happening of such event, and (2) the Warrant Price then in
effect shall be adjusted to equal (A) the Warrant Price then in

                                      -6-
<PAGE>

effect multiplied by the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to the adjustment divided by (B) the number of
shares of Common Stock for which this Warrant is exercisable immediately after
such adjustment.

         (c) Form of Warrant after Adjustments. The form of this Warrant need
not be changed because of any adjustments in the Warrant Price or the number and
kind of Securities purchasable upon the exercise of this Warrant.

         5. Notice of Adjustments. Whenever the Warrant Price or Warrant Share
Number shall be adjusted pursuant to Section 4 hereof (for purposes of this
Section 5, each an "adjustment"), the Issuer shall cause its Chief Financial
Officer to prepare and execute a certificate setting forth, in reasonable
detail, the event requiring the adjustment, the amount of the adjustment, the
method by which such adjustment was calculated (including a description of the
basis on which the Board made any determination hereunder), and the Warrant
Price and Warrant Share Number after giving effect to such adjustment, and shall
cause copies of such certificate to be delivered to the Holder of this Warrant
promptly after each adjustment. Any dispute between the Issuer and the Holder of
this Warrant with respect to the matters set forth in such certificate may at
the option of the Holder of this Warrant be submitted to one of the national
accounting firms currently known as the "big five" selected by the Holder,
provided that the Issuer shall have ten (10) days after receipt of notice from
such Holder of its selection of such firm to object thereto, in which case such
Holder shall select another such firm and the Issuer shall have no such right of
objection. The firm selected by the Holder of this Warrant as provided in the
preceding sentence shall be instructed to deliver a written opinion as to such
matters to the Issuer and such Holder within thirty (30) days after submission
to it of such dispute. Such opinion shall be final and binding on the parties
hereto.

         6. Fractional Shares. No fractional shares of Warrant Stock will be
issued in connection with and exercise hereof, but in lieu of such fractional
shares, the Issuer shall make a cash payment therefor equal in amount to the
product of the applicable fraction multiplied by the Per Share Market Value then
in effect.

         7. Intentionally Omitted.

         8. Definitions. For the purposes of this Warrant, the following terms
have the following meanings:

                  "Board" shall mean the Board of Directors of the Issuer.

                  "Capital Stock" means and includes (i) any and all shares,
         interests, participations or other equivalents of or interests in
         (however designated) corporate stock, including, without limitation,
         shares of preferred or preference stock, (ii) all partnership interests
         (whether general or limited) in any Person which is a partnership,
         (iii) all membership interests or limited liability company interests
         in any limited liability company, and (iv) all equity or ownership
         interests in any Person of any other type.

                                      -7-
<PAGE>

                  "Certificate of Incorporation" means the Certificate of
         Incorporation of the Issuer as in effect on the Original Issue Date,
         and as hereafter from time to time amended, modified, supplemented or
         restated in accordance with the terms hereof and thereof and pursuant
         to applicable law.

                  "Common Stock" means the Common Stock, par value $.001 per
         share, of the Issuer and any other Capital Stock into which such stock
         may hereafter be changed.

                  "Governmental Authority" means any governmental, regulatory or
         self-regulatory entity, department, body, official, authority,
         commission, board, agency or instrumentality, whether federal, state or
         local, and whether domestic or foreign.

                  "Holders" mean the Persons who shall from time to time own any
         Warrant. The term "Holder" means one of the Holders.

                  "Independent Appraiser" means 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 Issuer) that is
         regularly engaged in the business of appraising the Capital Stock or
         assets of corporations or other entities as going concerns, and which
         is not affiliated with either the Issuer or the Holder of any Warrant.

                  "Issuer" means The viaLink Company, a Delaware corporation,
and its successors.

                  "Majority Holders" means at any time the Holders of Warrants
         exercisable for a majority of the shares of Warrant Stock issuable
         under the Warrants at the time outstanding.

                  "Original Issue Date" means September 30, 2002.

                  "OTC Bulletin Board" means the over-the-counter electronic
bulletin board.

                  "Other Common" means any other Capital Stock of the Issuer of
         any class which shall be authorized at any time after the date of this
         Warrant (other than Common Stock) and which shall have the right to
         participate in the distribution of earnings and assets of the Issuer
         without limitation as to amount.

                  "Person" means an individual, corporation, limited liability
         company, partnership, joint stock company, trust, unincorporated
         organization, joint venture, Governmental Authority or other entity of
         whatever nature.

                  "Per Share Market Value" means on any particular date (a) the
         closing bid price for a share of Common Stock in the over-the-counter
         market, as reported by the OTC Bulletin Board or in the National
         Quotation Bureau Incorporated or similar organization or agency
         succeeding to its functions of reporting prices) at the close of
         business on such

                                      -8-
<PAGE>

         date, or (b) if the Common Stock is not then reported by the OTC
         Bulletin Board or the National Quotation Bureau Incorporated (or
         similar organization or agency succeeding to its functions of reporting
         prices), then the average of the "Pink Sheet" quotes for the relevant
         conversion period, as determined in good faith by the holder, or (c) if
         the Common Stock is not then publicly traded the fair market value of a
         share of Common Stock as determined by the Board in good faith;
         provided, however, that the Majority Holders, after receipt of the
         determination by the Board, shall have the right to select, jointly
         with the Issuer, an Independent Appraiser, in which case, the fair
         market value shall be the determination by such Independent Appraiser;
         and provided, further that all determinations of the Per Share Market
         Value shall be appropriately adjusted for any stock dividends, stock
         splits or other similar transactions during such period. The
         determination of fair market value shall be based upon the fair market
         value of the Issuer determined on a going concern basis as between a
         willing buyer and a willing seller and taking into account all relevant
         factors determinative of value, and shall be final and binding on all
         parties. In determining the fair market value of any shares of Common
         Stock, no consideration shall be given to any restrictions on transfer
         of the Common Stock imposed by agreement or by federal or state
         securities laws, or to the existence or absence of, or any limitations
         on, voting rights.

                  "Purchase Agreements" means the Series D Convertible Preferred
         Stock Purchase Agreements, each dated as of September 30, 2002, among
         the Issuer and the investors a party thereto.

                  "Securities" means any debt or equity securities of the
         Issuer, whether now or hereafter authorized, any instrument convertible
         into or exchangeable for Securities or a Security, and any option,
         warrant or other right to purchase or acquire any Security. "Security"
         means one of the Securities.

                  "Securities Act" means the Securities Act of 1933, as amended,
         or any similar federal statute then in effect.

                  "Subsidiary" means any corporation at least 50% of whose
         outstanding Voting Stock shall at the time be owned directly or
         indirectly by the Issuer or by one or more of its Subsidiaries, or by
         the Issuer and one or more of its Subsidiaries.

                  "Term" has the meaning specified in Section 1 hereof.

                  "Trading Day" means (a) a day on which the Common Stock is
         traded on the OTC Bulletin Board, or (b) if the Common Stock is not
         traded on the OTC Bulletin Board, 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); provided, however, that
         in the event that the Common Stock is not listed or quoted as set forth
         in (a) or (b) hereof, then Trading Day shall mean any day except
         Saturday, Sunday and any day which shall be a legal holiday or a day on
         which banking institutions in the State of New York are authorized or
         required by law or other government action to close.

                                      -9-
<PAGE>

                  "Voting Stock" means, as applied to the Capital Stock of any
         corporation, Capital Stock of any class or classes (however designated)
         having ordinary voting power for the election of a majority of the
         members of the Board of Directors (or other governing body) of such
         corporation, other than Capital Stock having such power only by reason
         of the happening of a contingency.

                  "Warrants" means the Warrants issued and sold pursuant to the
         Purchase Agreements, including, without limitation, this Warrant, and
         any other warrants of like tenor issued in substitution or exchange for
         any thereof pursuant to the provisions of Section 2(c), 2(d) or 2(e)
         hereof or of any of such other Warrants.

                  "Warrant Price" initially means U.S. $.001, as such price may
         be adjusted from time to time as shall result from the adjustments
         specified in this Warrant, including Section 4 hereto.

                  "Warrant Share Number" means at any time the aggregate number
         of shares of Warrant Stock which may at such time be purchased upon
         exercise of this Warrant, after giving effect to all prior adjustments
         and increases to such number made or required to be made under the
         terms hereof.

                  "Warrant Stock" means Common Stock issuable upon exercise of
         any Warrant or Warrants or otherwise issuable pursuant to any Warrant
         or Warrants.

         9.       Other Notices.  In case at any time:

                                    (A)     the Issuer shall make any
                                            distributions to the holders of
                                            Common Stock; or

                                    (B)     the Issuer shall authorize the
                                            granting to all holders of its
                                            Common Stock of rights to subscribe
                                            for or purchase any shares of
                                            Capital Stock of any class or other
                                            rights; or

                                    (C)     there shall be any reclassification
                                            of the Capital Stock of the Issuer;
                                            or

                                    (D)     there shall be any capital
                                            reorganization by the Issuer; or

                                    (E)     there shall be any (i) consolidation
                                            or merger involving the Issuer or
                                            (ii) sale, transfer or other
                                            disposition of all or substantially
                                            all of the Issuer's property, assets
                                            or business (except a merger or
                                            other reorganization in which the
                                            Issuer shall be the surviving
                                            corporation and its shares of
                                            Capital Stock shall continue to be
                                            outstanding and unchanged and except
                                            a consolidation, merger, sale,
                                            transfer or other disposition
                                            involving a wholly-owned
                                            Subsidiary); or

                                      -10-
<PAGE>

                                    (F)     there shall be a voluntary or
                                            involuntary dissolution, liquidation
                                            or winding-up of the Issuer or any
                                            partial liquidation of the Issuer or
                                            distribution to holders of Common
                                            Stock;

then, in each of such cases, the Issuer shall give written notice to the Holder
of the date on which (i) the books of the Issuer shall close or a record shall
be taken for such dividend, distribution or subscription rights or (ii) such
reorganization, reclassification, consolidation, merger, disposition,
dissolution, liquidation or winding-up, as the case may be, shall take place.
Such notice also shall specify the date as of which the holders of Common Stock
of record shall participate in such dividend, distribution or subscription
rights, or shall be entitled to exchange their certificates for Common Stock for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, disposition, dissolution, liquidation
or winding-up, as the case may be. Such notice shall be given at least twenty
(20) days prior to the action in question and not less than twenty (20) days
prior to the record date or the date on which the Issuer's transfer books are
closed in respect thereto. The Holder shall have the right to send two (2)
representatives selected by it to each meeting, who shall be permitted to
attend, but not vote at, such meeting and any adjournments thereof. This Warrant
entitles the Holder to receive copies of all financial and other information
distributed or required to be distributed to the holders of the Common Stock.

         10. Amendment and Waiver. Any term, covenant, agreement or condition in
this Warrant may be amended, or compliance therewith may be waived (either
generally or in a particular instance and either retroactively or
prospectively), by a written instrument or written instruments executed by the
Issuer and the Majority Holders; provided, however, that no such amendment or
waiver shall reduce the Warrant Share Number, increase the Warrant Price,
shorten the period during which this Warrant may be exercised or modify any
provision of this Section 10 without the consent of the Holder of this Warrant.

         11. Governing Law. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO
PRINCIPLES OF CONFLICTS OF LAW.

         12. Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be
deemed given and effective on the earlier of (i) the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile
telephone number specified for notice prior to 5:00 p.m., eastern time, on a
Trading Day, (ii) the Trading Day after the date of transmission, if such notice
or communication is delivered via facsimile at the facsimile telephone number
specified for notice later than 5:00 p.m., eastern time, on any date and earlier
than 11:59 p.m., eastern time, on such date, (iii) the Trading Day following the
date of mailing, if sent by nationally recognized overnight courier service or
(iv) actual receipt by the party to whom such notice is required to be given.
The addresses for such communications shall be with respect to the Holder of
this Warrant or of Warrant Stock issued pursuant hereto, addressed to such
Holder at its last known

                                      -11-
<PAGE>

address or facsimile number appearing on the books of the Issuer maintained for
such purposes, or with respect to the Issuer, addressed to:

                  The viaLink Company
                  13155 Noel Road
                  Suite 700
                  Dallas, Texas 75240
                  Attention: Chief Executive Officer and Chief Financial Officer
                  Tel. No.: (972) 934-5500
                  Fax No.:  (972) 934-5583

Copies of notices to the Holder shall be sent to Jenkens & Gilchrist Parker
Chapin LLP, 405 Lexington Avenue, New York, New York 10174, Attention:
Christopher S. Auguste, Esq., Facsimile No.: (212) 704-6288. Any party hereto
may from time to time change its address for notices by giving at least ten (10)
days written notice of such changed address to the other party hereto.

         13. Warrant Agent. The Issuer may, by written notice to each Holder of
this Warrant, appoint an agent having an office in New York, New York for the
purpose of issuing shares of Warrant Stock on the exercise of this Warrant
pursuant to subsection (b) of Section 2 hereof, exchanging this Warrant pursuant
to subsection (d) of Section 2 hereof or replacing this Warrant pursuant to
subsection (d) of Section 3 hereof, or any of the foregoing, and thereafter any
such issuance, exchange or replacement, as the case may be, shall be made at
such office by such agent.

         14. Remedies. The Issuer stipulates that the remedies at law of the
Holder of this Warrant in the event of any default or threatened default by the
Issuer in the performance of or compliance with any of the terms of this Warrant
are not and will not be adequate and that, to the fullest extent permitted by
law, such terms may be specifically enforced by a decree for the specific
performance of any agreement contained herein or by an injunction against a
violation of any of the terms hereof or otherwise.

         15. Successors and Assigns. This Warrant and the rights evidenced
hereby shall inure to the benefit of and be binding upon the successors and
assigns of the Issuer, the Holder hereof and (to the extent provided herein) the
Holders of Warrant Stock issued pursuant hereto, and shall be enforceable by any
such Holder or Holder of Warrant Stock.

         16. Modification and Severability. If, in any action before any court
or agency legally empowered to enforce any provision contained herein, any
provision hereof is found to be unenforceable, then such provision shall be
deemed modified to the extent necessary to make it enforceable by such court or
agency. If any such provision is not enforceable as set forth in the preceding
sentence, the unenforceability of such provision shall not affect the other
provisions of this Warrant, but this Warrant shall be construed as if such
unenforceable provision had never been contained herein.

                                      -12-
<PAGE>

         17. Headings. The headings of the Sections of this Warrant are for
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

                                      -13-
<PAGE>

         IN WITNESS WHEREOF, the Issuer has executed this Series D Warrant as of
the day and year first above written.

                                              THE VIALINK COMPANY

                                          By:
                                             -----------------------------------
                                              Name:
                                              Title:

                                      -14-
<PAGE>

                                  EXERCISE FORM

                               THE VIALINK COMPANY

The undersigned _______________, pursuant to the provisions of the within Series
D Warrant, hereby elects to purchase _____ shares of Common Stock of The viaLink
Company covered by the within Series D Warrant.

Dated: _________________            Signature        ___________________________

                                    Address          ___________________________

                                                     ___________________________

                                   ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the within Series D Warrant and all rights evidenced thereby
and does irrevocably constitute and appoint _____________, attorney, to transfer
the said Series D Warrant on the books of the within named corporation.

Dated: _________________            Signature        ___________________________

                                    Address          ___________________________

                                                     ___________________________

                               PARTIAL ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the right to purchase _________ shares of Warrant Stock
evidenced by the within Series D Warrant together with all rights therein, and
does irrevocably constitute and appoint ___________________, attorney, to
transfer that part of the said Series D Warrant on the books of the within named
corporation.

Dated: _________________            Signature        ___________________________

                                    Address          ___________________________

                                                     ___________________________

                          FOR USE BY THE ISSUER ONLY:

This Series D Warrant No. W-D-___ canceled (or transferred or exchanged) this
_____ day of ___________, _____, shares of Common Stock issued therefor in the
name of _______________, Warrant No. W-_____ issued for ____ shares of Common
Stock in the name of _______________.

                                      -15-

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