Document:

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                                                                  Exhibit 4(A)-4

                          CALCULATION AGENT AGREEMENT

THIS AGREEMENT dated as of       ,      between Texas Eastern Transmission
Corporation (hereinafter called the "Issuer"), having its principal office at
5400 Westheimer Court, Houston, Texas 77251, and The Chase Manhattan Bank, a
New York banking corporation (hereinafter sometimes called the "Calculation
Agent" which term shall, unless the context shall otherwise require, include
its successors and assigns), having its principal corporate trust office at 450
West 33rd Street, New York, New York 10001.

Recitals of the Issuer

The Issuer proposes to issue from time to time senior notes (the "Notes") under
an Indenture dated as of       , 2000 (the "Indenture"), between the Issuer and
The Chase Manhattan Bank, as Trustee. Capitalized terms used in this Agreement
and not otherwise defined herein are used as defined in the Indenture. Certain
of the Notes may bear interest at one of several floating rates determined by
reference to an interest rate formula (the "Floating Rate Notes") and the
Issuer desires to engage the Calculation Agent to perform certain services in
connection therewith.

  NOW IT IS HEREBY AGREED THAT:

  1. The Issuer hereby appoints The Chase Manhattan Bank as Calculation Agent
  for the Floating Rate Notes, upon the terms and subject to the conditions
  herein mentioned, subject to the Issuer's right to designate a different
  party as Calculation Agent in the Prospectus Supplement relating to the
  Floating Rate Notes, and The Chase Manhattan Bank hereby accepts such
  appointment. This appointment shall apply only to those series of Floating
  Rate Notes for which no other Calculation Agent is designated in the
  applicable Prospectus Supplement relating to the Floating Rate Notes and
  the term "Floating Rate Notes" in this Agreement shall mean only Floating
  Rate Notes as to which this appointment applies. Subject to the foregoing,
  the Calculation Agent shall act as an agent of the Issuer for the purpose
  of determining the interest rate or rates of the Floating Rate Notes.

  2. The Issuer agrees to deliver to the Calculation Agent, prior to the
  issuance of any Floating Rate Notes, copies of the proposed forms of such
  Notes, including copies of the terms and conditions relating to the
  determination of the interest rate thereunder. The Issuer shall not issue
  any Floating Rate Note prior to the receipt of confirmation from the
  Calculation Agent of its acceptance of the proposed form of such Note.

  3. The Issuer shall notify the Calculation Agent of the issuance of any
  Floating Rate Notes prior to the issuance thereof and at the time of such
  issuance shall deliver to the Calculation Agent the information required to
  be provided by the Issuer for the calculation of the applicable interest
  rates thereunder. The Calculation Agent shall calculate the applicable
  interest rates for Floating Rate Notes in accordance with the terms of such
  Notes, the Indenture and the provisions of this Agreement.
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  4. Upon the determination of an interest rate applicable to a Floating Rate
  Note, the Calculation Agent shall promptly notify the Issuer, the Trustee
  and any Paying Agent of such interest rate. Upon the request of the holder
  of a Floating Rate Note, the Calculation Agent shall advise such holder of
  the interest rate then in effect and, if different, the interest rate which
  will become effective as a result of a determination already made with
  respect to such Floating Rate Note.

  5. The Issuer will pay such compensation as shall be agreed upon with the
  Calculation Agent and the out-of-pocket expenses, including reasonable
  counsel fees, incurred by the Calculation Agent in connection with its
  duties hereunder, upon receipt of such invoices as the Issuer shall
  reasonably require.

  6. Notwithstanding any satisfaction or discharge of the Notes or the
  Indenture, the Issuer will indemnify the Calculation Agent against any
  losses, liabilities, costs, claims, actions or demands which it may incur
  or sustain or which may be made against it in connection with its
  appointment or the exercise of its powers and duties hereunder as well as
  the reasonable costs, including the reasonable expenses and fees of counsel
  in defending any claim, action or demand, except such as may result from
  the gross negligence, wilful misconduct or bad faith of the Calculation
  Agent or any of its employees or agents. The Calculation Agent shall give
  the Issuer prompt notice of any such claim, action or demand known to it,
  but failure to do so shall not affect the indemnity provided hereby. Except
  as provided in the preceding sentence, the Calculation Agent shall incur no
  liability and shall be indemnified and held harmless by the Issuer for, or
  in respect of, any actions taken or suffered to be taken in good faith by
  the Calculation Agent in reliance upon (i) the written opinion or advice of
  counsel or (ii) written instructions from an officer of the Issuer.

  7. The Calculation Agent accepts its obligations herein set forth upon the
  terms and conditions hereof, including the following, to all of which the
  Issuer agrees:

    (i) in acting under this Agreement and in connection with the Floating
    Rate Notes, the Calculation Agent, acting as agent for the Issuer, does
    not assume any obligation toward, or any relationship of agency or
    trust for or with, any of the holders of such Floating Rate Notes;

    (ii) unless herein otherwise specifically provided, any order,
    certificate, notice, request or communication from the Issuer made or
    given under any provisions of this Agreement shall be sufficient if
    signed by any person whom the Calculation Agent reasonably believes to
    be a duly authorized officer or attorney-in-fact of the Issuer;

    (iii) the Calculation Agent shall be obligated to perform only such
    duties as are set forth specifically herein, in the Floating Rate Notes
    or in the Indenture and any duties necessarily incidental thereto;

    (iv) the Calculation Agent shall be protected and shall incur no
    liability for or in respect of any action taken or omitted to be taken
    or anything suffered by it in reliance upon any provision contained in
    a Floating Rate Note, the Indenture or any information supplied to it
    by an officer of the Issuer pursuant to this Agreement, including the
    information to be supplied pursuant to paragraph 3 above;

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    (v) the Calculation Agent, whether acting for itself or in any other
    capacity, may become the owner or pledgee of Notes with the same rights
    as it would have had if it were not acting hereunder as Calculation
    Agent;

    (vi) the Calculation Agent shall incur no liability hereunder except
    for loss sustained by reason of its or its employees' or agents' gross
    negligence, wilful misconduct or bad faith; and

    (vii) in no event shall the Calculation Agent be liable for special,
    indirect or consequential loss or damage of any kind whatsoever
    (including but not limited to lost profits), even if the Calculation
    Agent has been advised of the likelihood of such loss or damage and
    regardless of the form of action.

  8. (a) The Issuer agrees to notify the Calculation Agent at least three
  Business Days prior to the issuance of any Floating Rate Note with an
  interest rate to be determined by any formula that would require the
  Calculation Agent to select banks or other financial institutions (the
  "Reference Banks") for purposes of quoting rates. Immediately prior to
  seeking such quotes from such Reference Banks, the Calculation Agent will
  notify the Issuer and the Trustee of the names and addresses of such
  Reference Banks. The Calculation Agent shall not be responsible to the
  Issuer or any third party for any failure of the Reference Banks to fulfill
  their duties or meet their obligations as Reference Banks or as a result of
  the Calculation Agent having acted (except in the event of gross
  negligence, wilful misconduct or bad faith) on any quotation or other
  information given by any Reference Bank which subsequently may be found to
  be incorrect.

  (b) Except as provided below, the Calculation Agent may at any time resign
  as Calculation Agent by giving written notice to the Issuer and the Trustee
  of such intention on its part, specifying the date on which its desired
  resignation shall become effective, provided that such notice shall be
  given not less than 60 days prior to the said effective date unless the
  Issuer agrees in writing. The Calculation Agent may be removed by the
  filing with it and the Trustee of an instrument in writing signed by the
  Issuer specifying such removal and the date when it shall become effective.
  Any resignation or removal of the Calculation Agent shall take effect only
  upon:

    (i) the appointment by the Issuer as hereinafter provided of a
    successor Calculation Agent; and

    (ii) the acceptance of such appointment by such successor Calculation
    Agent; provided, however, that in the event the Calculation Agent has
    given not less than 60 days' prior notice of its desired resignation,
    and during such 60 days there has not been acceptance by a successor
    Calculation Agent of its appointment as successor Calculation Agent,
    the Calculation Agent so resigning may petition any court of competent
    jurisdiction for the appointment of a successor Calculation Agent. The
    Issuer covenants that it shall appoint a successor Calculation Agent as
    soon as practicable after receipt of any notice of resignation
    hereunder. Upon its resignation or removal becoming effective, the
    retiring Calculation Agent shall be entitled to the payment of all
    compensation and the reimbursement of its expenses (including
    reasonable counsel fees) incurred by such retiring Calculation Agent,
    in accordance with paragraph 5 hereof, to the date such resignation or
    removal becomes effective.

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  (c) If at any time the Calculation Agent shall resign or be removed, or
  shall become incapable of acting or shall be adjudged bankrupt or
  insolvent, or liquidated or dissolved, or an order is made or an effective
  resolution is passed to wind up the Calculation Agent, or if the
  Calculation Agent shall file a voluntary petition in bankruptcy or make an
  assignment for the benefit of its creditors, or shall consent to the
  appointment of a receiver, administrator or other similar official of all
  or any substantial part of its property, or shall admit in writing its
  inability to pay or meet its debts as they mature, or if a receiver,
  administrator or other similar official of the Calculation Agent or of all
  or any substantial part of its property shall be appointed, or if any order
  of any court shall be entered approving any petition filed by or against
  the Calculation Agent under the provisions of any applicable bankruptcy or
  insolvency law, or if any public officer shall take charge or control of
  the Calculation Agent or its property or affairs for the purpose of
  rehabilitation, conservation or liquidation, then a successor Calculation
  Agent shall be appointed by the Issuer by an instrument in writing filed
  with the predecessor Calculation Agent, the successor Calculation Agent and
  the Trustee. Upon the appointment as aforesaid of a successor Calculation
  Agent and acceptance by the latter of such appointment the former
  Calculation Agent shall cease to be Calculation Agent hereunder.

  (d) Any successor Calculation Agent appointed hereunder shall execute and
  deliver to its predecessor, the Issuer and the Trustee an instrument
  accepting such appointment hereunder, and thereupon such successor
  Calculation Agent, without any further act, deed or conveyance, shall
  become vested with all the authority, rights, powers, immunities, duties
  and obligations of such predecessor with like effect as if originally named
  as the Calculation Agent hereunder, and such predecessor shall thereupon
  become obliged to transfer and deliver, and such successor Calculation
  Agent shall be entitled to receive, copies of any relevant records
  maintained by such predecessor Calculation Agent.

  (e) Any corporation into which the Calculation Agent may be merged or
  converted or any corporation with which the Calculation Agent may be
  consolidated or any corporation resulting from any merger, conversion or
  consolidation to which the Calculation Agent shall be a party shall, to the
  extent permitted by applicable law, be the successor Calculation Agent
  under this Agreement without the execution or filing of any paper or any
  further act on the part of any of the parties hereto. Notice of any such
  merger, conversion or consolidation shall forthwith be given to the Issuer
  and the Trustee.

  (f) The provisions of paragraph 6 hereof shall survive any resignation or
  removal hereunder.

  9. Any notice required to be given hereunder shall be delivered in person
  against written receipt, sent by letter or telecopy or communicated by
  telephone (subject, in the case of communication by telephone, to
  confirmation dispatched within two Business Days by letter or telecopy), in
  the case of the Issuer, to it at the address set forth in the heading of
  this Agreement, Attention: Treasurer; in the case of the Calculation Agent,
  to it at the address set forth in the heading of this Agreement, Attention:
  Capital Markets Fiduciary Services; in the case of the Trustee, to it at
  450 West 33rd Street, New York, New York 10001, Attention: Capital Markets
  Fiduciary Services; or, in any case, to any other address of which the
  party receiving notice shall have notified the party giving such notice in
  writing.

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  10. This Agreement may be amended only by a writing duly executed and
  delivered by each of the parties signing below.

  11. The provisions of this Agreement shall be governed by, and construed in
  accordance with, the laws of the State of New York.

  12. This Agreement may be executed in counterparts and the executed
  counterparts shall together constitute a single instrument.

IN WITNESS WHEREOF, this Agreement has been executed and delivered as of the
day and year first above written.

                                          Texas Eastern Transmission
                                           Corporation

                                          By: _________________________________
                                            Title:

                                          The Chase Manhattan Bank

                                          By: _________________________________
                                            Title:

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                                                                     Exhibit 4.2

                                                                  EXECUTION COPY

                    INTERCONTINENTAL TELECOMMUNICATIONS CORP.

                  ---------------------------------------------

                           CERTIFICATE OF DESIGNATION

                  --------------------------------------------

                      Series A Convertible Preferred Stock

                   -------------------------------------------

         The undersigned Secretary of Intercontinental Telecommunications Corp.,
a Florida corporation d/b/a ITC.net (the "Corporation"), does hereby certify
that the following resolution has been duly adopted by the Board of Directors of
the Corporation (the "Board of Directors") on May 24th, 2000:

         RESOLVED, that pursuant to the authority expressly granted to and
vested in the Board of Directors by the provisions of the Articles of
Incorporation of the Corporation (the "Articles of Incorporation"), there hereby
is created, out of the shares of Preferred Stock of the Corporation authorized
in the Articles of Incorporation (the "Preferred Stock"), a series of the
Preferred Stock consisting of 4,914,005 shares, par value $0.0001 per share,
which series shall have the following powers, designations, preferences and
relative, participating, optional and other rights, and the following
qualifications, limitations and restrictions (in addition to the powers,
designations, preferences and relative, participating, optional and other
rights, and the qualifications, limitations and restrictions, set forth in the
Articles of Incorporation which are applicable to the Preferred Stock
generally):

         1. DESIGNATION AND AMOUNT. This series of Preferred Stock shall be
designated as the Series A Convertible Preferred Stock (the "Series A Preferred
Stock"), and the authorized number of shares constituting such series shall be
4,914,005, par value $0.0001 per share.

         2. DIVIDENDS. The holders of Series A Preferred Stock shall have the
right to receive, in preference to the holders of Junior Stock, dividends,
payable when and as declared by the Board of Directors of the Corporation out of
assets legally available therefor an amount (determined on a per share basis as
set forth below) equal to that paid with respect to a share of Common Stock. In
determining the dividend payable with respect to a share of Preferred Stock, the
holder of a share of Preferred Stock shall be entitled to receive a dividend
equal to the dividend the holder would otherwise have received if such holder
converted the share of Preferred Stock to Common Stock pursuant to Section 5
below.

         3. LIQUIDATION, DISSOLUTION OR WINDING UP; CERTAIN MERGERS,
CONSOLIDATIONS AND ASSET SALES. Upon a liquidation, dissolution or winding up of
the Corporation, whether voluntary or involuntary (each, a "Liquidation"), each
holder of Series A Preferred Stock shall be entitled, after provision for the
payment of the Corporation's debts and other liabilities, to be paid in cash in
full, before any distribution is made on any Junior Stock, an amount in cash
equal to (A) the number of shares of Preferred Stock held by such holder
multiplied by (B) the sum of $4.07 and, all declared and unpaid dividends
(appropriately adjusted for any recapitalizations, stock combinations, stock
dividends, stock splits and the like) (the "Liquidation Amount"). If, upon a
Liquidation, the net assets of the Corporation distributable among the holders
of all outstanding

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Series A Preferred Stock shall be insufficient to permit the payment of the
Liquidation Amount in full, then the entire net assets of the Corporation
remaining after the provision for the payment of the Corporation's debts and
other liabilities shall be distributed among the holders of the Series A
Preferred Stock ratably in proportion to the full preferential amounts to which
they would otherwise be respectively entitled on account of their Series A
Preferred Stock. After payment in full has been made to the holders of the
Series A Preferred Stock of the full amounts to which they shall be entitled
pursuant to the preceding sentences of this paragraph, the holders of Common
Stock shall be entitled to receive from the remaining assets and funds of the
corporation an amount equal to the purchase price for the Common Stock, plus all
declared and unpaid dividends (appropriately adjusted for any recapitalizations,
stock combinations, stock dividends, stock splits and the like) on the Common
Stock. After payment in full has been made to the holders of the Common Stock
pursuant to the preceding sentence, the holders of the Series A Preferred Stock
and the holders of the Common Stock shall share in the distribution of the
entire remaining assets and funds of the corporation legally available for
distribution to stockholders in proportion to the number of shares of Common
Stock held by them, or to be received upon conversion of the Series A Preferred
Stock.

A merger or consolidation of the Corporation in a single transaction or a series
of transactions pursuant to which holders of capital stock of the Corporation
immediately prior to such transaction or series of transactions do not continue
to hold more than 50% by voting power of the capital stock of the surviving
corporation after such transaction or series of transactions, or the sale of all
or substantially all the assets of the Corporation, shall be deemed to be a
Liquidation of the Corporation, and all consideration payable to the
stockholders of the Corporation (in the case of a merger or consolidation), or
all consideration payable to the Corporation, together with all other available
assets of the Corporation (in the case of an asset sale), shall be distributed
to the holders of the Series A Preferred Stock in accordance with the foregoing
provisions of this Section 3 at the request of holders of a majority of the
Series A Preferred Stock.

         4. VOTING.

                  (a) Each holder of outstanding shares of Series A Preferred
         Stock shall be entitled to the number of votes equal to the number of
         whole shares of Common Stock into which the shares of Series A
         Preferred Stock held by such holder are then convertible (as adjusted
         from time to time pursuant to Section 5 hereof), at each meeting of
         stockholders of the Corporation (including written actions of
         stockholders in lieu of meetings as agreed by a majority of the holders
         of the Series A Preferred Stock and Common Stock) with respect to any
         and all matters presented to the stockholders of the Corporation for
         their action or consideration. Except as required by law, by the
         provisions of Subsection 4(b) below or elsewhere in the Corporation's
         Articles of Incorporation, as amended from time to time, holders of
         Series A Preferred Stock shall vote together with the holders of Common
         Stock as a single class.

                  (b) Except as otherwise required by law, so long as the
         holders of Series A Preferred Stock own at least 5% of the Company's
         outstanding shares of capital stock (it being understood that for
         purposes of this Section 4, such holders shall be deemed to own shares
         that they had a right to obtain pursuant to Section 2.1 of the Investor
         Rights Agreement, whether or not the holders exercised their rights
         pursuant to Section 2.1 of the Investor Rights Agreement), which amount
         shall include, without limitation, Common Stock and Series A Preferred
         Stock (taking into account, without duplication, the number of shares
         of Common Stock into which each share of Series A Preferred Stock is

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         convertible and securities convertible into such Common Stock and
         Series A Preferred Stock) but shall exclude options hereafter issued
         under any employee incentive plan in existence as of the date that this
         certificate is adopted or approved by holders of a majority of the
         shares of Series A Preferred Stock, the holders of the Series A
         Preferred Stock shall be entitled to select two members of the Board of
         Directors (the "Series A Members"). Such Series A Members shall be
         elected at the meeting of the stockholders (or pursuant to written
         actions of the stockholders in lieu of meetings) at which or pursuant
         to which the other members of the Board of Directors are elected. The
         Series A Members may not be removed at any time without cause other
         than by persons holding a majority of the outstanding shares of the
         Series A Preferred Stock, pursuant to a meeting of the holders of the
         Series A Preferred Stock, or pursuant to written action held in lieu of
         such meeting. In the event that any Series A Member resigns, is removed
         or otherwise ceases to be a member of the Board of Directors, the
         holders of the Series A Preferred Stock shall be entitled to designate
         a successor, such designation to be effected pursuant to a meeting of
         the holders of the Series A Preferred Stock (or a written action in
         lieu of such meeting).

                  (c) Without the affirmative vote of holders of a majority of
         the Series A Preferred Stock, the Corporation shall not (i) issue any
         additional shares of Series A Preferred Stock, or (ii) permit its Board
         of Directors to be composed of more than seven members.

         5. OPTIONAL CONVERSION. The holders of the Series A Preferred Stock
shall have conversion rights as follows (the "Conversion Rights"):

                  (a) RIGHT TO CONVERT. Each share of Series A Preferred Stock
         shall be convertible, at the option of the holder thereof, at any time
         and from time to time, and without the payment of additional
         consideration by the holder thereof, into such number of fully paid and
         nonassessable shares of Common Stock as is determined by dividing $4.07
         by the Series A Conversion Price in effect at the time of conversion.
         The "Series A Conversion Price" shall initially be $4.07. The rate at
         which shares of Series A Preferred Stock may be converted into shares
         of Common Stock shall be subject to adjustment as provided below.

         In the event of a Liquidation of the Corporation, the Conversion Rights
shall terminate at the close of business on the first full day preceding the
date fixed for the payment of any amounts distributable on Liquidation to the
holders of Series A Preferred Stock.

                  (b) FRACTIONAL SHARES. No fractional shares of Common Stock
         shall be issued upon conversion of the Series A Preferred Stock. In
         lieu of any fractional shares to which the holder would otherwise be
         entitled, the Corporation shall pay cash equal to such fraction
         multiplied by the then effective Series A Conversion Price.

                  (c) MECHANICS OF CONVERSION.

                           (i) In order for a holder of Series A Preferred Stock
                  to convert such shares into shares of Common Stock, such
                  holder shall surrender the certificate or certificates for
                  such shares of Series A Preferred Stock at the office of the
                  transfer agent for the Series A Preferred Stock (or at the
                  principal office of the Corporation if the Corporation serves
                  as its own transfer agent), together with written notice (a
                  "Conversion Demand") that such holder elects to convert all or

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                  any number of the shares of the Series A Preferred Stock
                  represented by such certificate or certificates. Such
                  Conversion Demand shall state such holder's name or the names
                  of the nominees in which such holder wishes the certificate or
                  certificates for shares of Common Stock to be issued. If
                  required by the Corporation, certificates surrendered for
                  conversion shall be endorsed or accompanied by a written
                  instrument or instruments of transfer, in form reasonably
                  satisfactory to the Corporation, duly executed by the
                  registered holder or his or its attorney duly authorized in
                  writing. The date of receipt of such certificates and
                  Conversion Demand notice by the transfer agent (or by the
                  Corporation if the Corporation serves as its own transfer
                  agent) shall be the conversion date ("Conversion Date"). The
                  Corporation shall, as soon as practicable after the Conversion
                  Date, issue and deliver at such office to such holder of
                  Series A Preferred Stock, or to his or its nominees, a
                  certificate or certificates for the number of shares of Common
                  Stock to which such holder shall be entitled as a result of
                  such conversion, together with cash in lieu of any fraction of
                  a share.

                           (ii) The Corporation shall at all times when the
                  Series A Preferred Stock shall be outstanding, reserve and
                  keep available out of its authorized but unissued stock, for
                  the purpose of effecting the conversion of the Series A
                  Preferred Stock, such number of its duly authorized shares of
                  Common Stock as shall from time to time be sufficient to
                  effect the conversion of all outstanding Series A Preferred
                  Stock. Before taking any action which would cause an
                  adjustment reducing the Series A Conversion Price below the
                  then par value of the shares of Common Stock issuable upon
                  conversion of the Series A Preferred Stock, the Corporation
                  will take any corporate action which may, in the opinion of
                  its counsel, be necessary in order that the Corporation may
                  validly and legally issue fully paid and nonassessable shares
                  of Common Stock at such adjusted Series A Conversion Price.

                           (iii) Upon any such conversion, no adjustment to the
                  Series A Conversion Price shall be made for any declared but
                  unpaid dividends on the Series A Preferred Stock surrendered
                  for conversion or on the Common Stock delivered upon
                  conversion.

                           (iv) All shares of Series A Preferred Stock which
                  shall have been surrendered for conversion as herein provided
                  shall no longer be deemed to be outstanding and all rights
                  with respect to such shares, including the rights associated
                  therewith, if any, to receive notices and to vote, shall
                  immediately cease and terminate on the Conversion Date, except
                  only the right of the holders thereof to receive shares of
                  Common Stock or cash payment for any fraction thereof, in
                  exchange therefor and payment of any dividends declared but
                  unpaid thereon. Any shares of Series A Preferred Stock so
                  converted shall be retired and canceled and shall not be
                  reissued, and the Corporation (without the need for
                  stockholder action) may from time to time take such
                  appropriate action as may be necessary to reduce the
                  authorized Series A Preferred Stock accordingly.

                           (v) The Corporation shall pay any and all issue and
                  other taxes that may be payable in respect of any issuance or
                  delivery of shares of Common Stock upon conversion of shares
                  of Series A Preferred Stock pursuant to this

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                  Section 5. The Corporation shall not, however, be required to
                  pay any tax which may be payable in respect of any transfer
                  involved in the issuance and delivery of shares of Common
                  Stock in a name other than that in which the shares of Series
                  A Preferred Stock so converted were registered, and no such
                  issuance or delivery shall be made unless and until the person
                  or entity requesting such issuance has paid to the Corporation
                  the amount of any such tax or has established, to the
                  reasonable satisfaction of the Corporation, that such tax has
                  been paid.

                           (vi) Notwithstanding any other provision hereof, if a
                  conversion of Series A Preferred Stock is to be made in
                  connection with a public offering of Common Stock, the
                  conversion of any shares of Series A Preferred Stock may, at
                  the election of the holder of such shares, be conditioned upon
                  the consummation of such public offering in which case such
                  conversion shall not be deemed to be effective until the
                  consummation of such public offering.

                  (d) ADJUSTMENTS TO CONVERSION PRICE FOR DILUTING ISSUES:

                           (i) SPECIAL DEFINITIONS. For purposes of Subsections
                  5(d)-5(g), the following definitions shall apply:

                                    (A) "Option" shall mean rights, options or
                           warrants to subscribe for, purchase or otherwise
                           acquire Common Stock or Convertible Securities,
                           excluding options described in subsection
                           5(d)(i)(C)(IV) below.

                                    (B) "Convertible Securities" shall mean any
                           evidences of indebtedness, shares or other securities
                           directly or indirectly convertible into or
                           exchangeable for Common Stock.

                                    (C) "Additional Shares of Common Stock"
                           shall mean all shares of Common Stock issued (or,
                           pursuant to Subsection 5(d)(iii) below, deemed to be
                           issued) by the Corporation after the Original Issue
                           Date, other than shares of Common Stock (or, in the
                           case of clause IV below, options or warrants to
                           purchase shares of Common Stock) issued or issuable:

                                    (I) upon conversion of any Convertible
                           Securities outstanding on the Original Issue Date, or
                           upon exercise of any Options outstanding on the
                           Original Issue Date;

                                    (II) as a dividend or distribution on Series
                           A Preferred Stock;

                                    (III) by reason of a dividend, stock split,
                           split up or other distribution on shares of Common
                           Stock that is covered by Subsection 5(e) or 5(f)
                           below; or

                                    (IV) to employees, directors, officers or
                           managers of, or consultants to, the Corporation or
                           any of its subsidiaries pursuant to a plan adopted by
                           the Board of Directors of the Corporation in good
                           faith and approved by holders of a majority of the
                           shares of Series A Preferred

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                  Stock or upon the exercise of options and warrants granted
                  prior to the date hereof.

                  (ii) NO ADJUSTMENT OF CONVERSION PRICE. No adjustment in the
         number of shares of Common Stock into which the Series A Preferred
         Stock is convertible shall be made, by adjustment in the Series A
         Conversion Price, as applicable, unless the consideration per share
         (determined pursuant to Subsection 5(d)(v)) for an Additional Share of
         Common Stock issued or deemed to be issued by the Corporation is less
         than the Series A Conversion Price in effect on the date of, and
         immediately prior to, the issue of such Additional Shares.

                  (iii) ISSUE OF SECURITIES DEEMED ISSUE OF ADDITIONAL SHARES OF
         COMMON STOCK. If the Corporation at any time or from time to time after
         the Original Issue Date shall issue any Options or Convertible
         Securities or shall fix a record date for the determination of holders
         of any class of securities entitled to receive any such Options or
         Convertible Securities, then the maximum number of shares of Common
         Stock (as set forth in the instrument relating thereto without regard
         to any provision contained therein for a subsequent adjustment of such
         number) issuable upon the exercise of such Options or, in the case of
         Convertible Securities and Options therefor, the conversion or exchange
         of such Convertible Securities, shall be deemed to be Additional Shares
         of Common Stock issued as of the time of such issue or, in case such a
         record date shall have been fixed, as of the close of business on such
         record date, provided that (I) Additional Shares of Common Stock shall
         not be deemed to have been issued unless the consideration per share
         (determined pursuant to Subsection 5(d)(v) hereof) of such Additional
         Shares of Common Stock would be less than the Series A Conversion
         Price, as applicable, in effect on the date of and immediately prior to
         such issue, or such record date, as the case may be, and (II) in any
         such case in which Additional Shares of Common Stock are deemed to be
         issued:

                           (A) No further adjustment in the Series A Conversion
                  Price shall be made upon the subsequent issue of Convertible
                  Securities or shares of Common Stock upon the exercise of such
                  Options or conversion or exchange of such Convertible
                  Securities;

                           (B) If such Options or Convertible Securities by
                  their terms provide, with the passage of time or otherwise,
                  for any increase or decrease in the consideration payable to
                  the Corporation, upon the exercise, conversion or exchange
                  thereof, the Series A Conversion Price computed upon the
                  original issue thereof (or upon the occurrence of a record
                  date with respect thereto), and any subsequent adjustments
                  based thereon, shall, upon any such increase or decrease
                  becoming effective, be recomputed to reflect such increase or
                  decrease insofar as it affects such Options or the rights of
                  conversion or exchange under such Convertible Securities;

                           (C) Upon the expiration or termination of any
                  unexercised Option or any unexercised rights of conversion or
                  exchange under any Convertible Security, the Series A
                  Conversion Price shall be readjusted to eliminate the
                  Additional Shares of Common Stock deemed issued as the result
                  of the original issue of such Option or such Convertible
                  Security;

                                       6
<PAGE>   7

                           (D) In the event of any change in the number of
                  shares of Common Stock issuable upon the exercise, conversion
                  or exchange of any Option or Convertible Security, including,
                  but not limited to, a change resulting from the anti-dilution
                  provisions thereof, the Series A Conversion Price then in
                  effect shall forthwith be readjusted to such Conversion Price
                  as would have been obtained had the adjustment which was made
                  upon the issuance of such Option or Convertible Security not
                  exercised or converted prior to such change been made upon the
                  basis of such change;

                           (E) No readjustment pursuant to clause (B), (C) or
                  (D) above shall have the effect of increasing the Series A
                  Conversion Price to an amount which exceeds the lower of (i)
                  the Series A Conversion Price on the original adjustment date,
                  or (ii) the Series A Conversion Price that would have resulted
                  from any issuances of Additional Shares of Common Stock
                  between the original adjustment date and such readjustment
                  date; and

                           (F) If any Option or Convertible Securities with
                  respect to which the maximum number of shares of Common Stock
                  issuable upon exercise or conversion or exchange thereof is
                  not determinable, no adjustment to the Series A Conversion
                  Price shall be made until such number becomes determinable.

                  (iv) ADJUSTMENT OF SERIES A CONVERSION PRICE UPON ISSUANCE OF
         ADDITIONAL SHARES OF COMMON STOCK. In the event the Corporation shall
         at any time after the Original Issue Date issue Additional Shares of
         Common Stock (including Additional Shares of Common Stock deemed to be
         issued pursuant to Section 5(d)(iii) other than Additional Shares
         deemed to be issued pursuant to (x) Convertible Securities outstanding
         on the date hereof, (y) options hereafter issued under any employee
         incentive plan in existence as of the date that this certificate is
         adopted or (z) options approved by holders of a majority of the shares
         of Series A Preferred Stock) without consideration or for a
         consideration per share less than the applicable Series A Conversion
         Price in effect on the date of and immediately prior to such issue,
         then and in each such event, such Series A Conversion Price shall be
         reduced, concurrently with such issue, to the lowest price paid for any
         Additional Share of Common Stock.

                  (v) DETERMINATION OF CONSIDERATION. For purposes of this
         Subsection 5(d), the consideration received by the Corporation for the
         issue of any Additional Shares of Common Stock shall be computed as
         follows:

                           (A) CASH AND PROPERTY: Such consideration shall:

                                    (I) insofar as it consists of cash, be
                           computed at the aggregate amount of cash received by
                           the Corporation, after deducting any commissions paid
                           by the Corporation, excluding amounts paid or payable
                           for accrued interest;

                                    (II) insofar as it consists of property
                           other than cash, be computed at the fair market value
                           thereof at the time of such issue, as determined in
                           good faith by the Corporation's Board of Directors
                           and approved by the majority of the holders of Series
                           A Preferred Stock; and

                                       7
<PAGE>   8

                                    (III) in the event Additional Shares of
                           Common Stock are issued (or pursuant to Section
                           5(d)(iii) deemed to be issued) together with other
                           shares or securities or other assets of the
                           Corporation for consideration which covers both, be
                           the proportion of such consideration so received,
                           computed as provided in clauses (I) and (II) above,
                           as determined in good faith by the Corporation's
                           Board of Directors and approved by the majority of
                           the holders of Series A Preferred Stock.

                           (B) OPTIONS AND CONVERTIBLE SECURITIES. The
                  consideration per share received by the Corporation for
                  Additional Shares of Common Stock deemed to have been issued
                  pursuant to Subsection 5(d)(iii), relating to Options and
                  Convertible Securities, shall be determined by dividing

                                    (I) the total amount, if any, received or
                           receivable by the Corporation as consideration for
                           the issue of such Options or Convertible Securities,
                           plus the minimum aggregate amount of additional
                           consideration (as set forth in the instruments
                           relating thereto, without regard to any provision
                           contained therein for a subsequent adjustment of such
                           consideration) payable to the Corporation upon the
                           exercise of such Options or the conversion or
                           exchange of such Convertible Securities, or in the
                           case of Options for Convertible Securities, the
                           exercise of such Options for Convertible Securities
                           and the conversion or exchange of such Convertible
                           Securities, by

                                    (II) the maximum number of shares of Common
                           Stock (as set forth in the instruments relating
                           thereto, without regard to any provision contained
                           therein for a subsequent adjustment of such number)
                           issuable upon the exercise of such Options or the
                           conversion or exchange of such Convertible
                           Securities.

                  (vi) MULTIPLE CLOSING DATES. In the event the Corporation
         shall issue on more than one date Additional Shares of Common Stock,
         and such issuance dates occur within a period of no more than 30 days,
         then the Series A Conversion Price shall each be adjusted only once on
         account of such issuances, with such adjustment to occur upon the final
         such issuance and to give effect to all such issuances as if they
         occurred on the date of the final such issuance.

                  (e) ADJUSTMENT FOR STOCK SPLITS AND COMBINATIONS. If the
         Corporation shall at any time or from time to time after the Original
         Issue Date effect a subdivision of the outstanding Common Stock by
         stock split, reclassification or otherwise, the Series A Conversion
         Price then in effect immediately before that subdivision shall each be
         proportionately decreased. If the Corporation shall at any time or from
         time to time after the Original Issue Date effect a subdivision of the
         Series A Preferred Stock, the Series A Conversion Price then in effect
         immediately before that subdivision shall be proportionately increased.
         If the Corporation shall at any time or from time to time after the
         Original Issue Date combine the outstanding shares of Common Stock, the
         Series A Conversion Price then in effect immediately before the
         combination shall each be proportionately increased. If the Corporation
         shall at any time or from time to time after the Original Issue Date
         combine the outstanding shares of Series A Preferred Stock, the Series
         A Conversion Price then in effect immediately before the combination
         shall be

                                       8
<PAGE>   9

         proportionately decreased. Any adjustment under this paragraph shall
         become effective at the close of business on the date the subdivision
         or combination becomes effective.

                  (f) ADJUSTMENT FOR CERTAIN DIVIDENDS AND DISTRIBUTIONS. In the
         event the Corporation at any time or from time to time after the
         Original Issue Date shall make or issue, or fix a record date for the
         determination of holders of Common Stock entitled to receive, a
         dividend or other distribution payable in Additional Shares of Common
         Stock, then and in each such event the Series A Conversion Price then
         in effect shall each be decreased as of the time of such issuance or,
         in the event such a record date shall have been fixed, as of the close
         of business on such record date, by multiplying the Series A 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;

         provided, however, if such record date shall have been fixed and such
         dividend is not fully paid or if such distribution is not fully made on
         the date fixed therefor, the Series A Conversion Price shall be
         recomputed accordingly as of the close of business on such record date
         and thereafter the Series A Conversion Price shall be adjusted pursuant
         to this paragraph as of the time of actual payment of such dividends or
         distributions; and provided further, however, that no such adjustment
         shall be made if the holders of Series A Preferred Stock simultaneously
         receive a dividend or other distribution of shares of Common Stock in a
         number equal to the number of shares of Common Stock as they would have
         received if all outstanding shares of Series A Preferred Stock had been
         converted into Common Stock on the date of such event.

                  (g) ADJUSTMENTS FOR OTHER DIVIDENDS AND DISTRIBUTIONS. In the
         event the Corporation at any time or from time to time after the
         Original Issue Date shall make or issue, or fix a record date for the
         determination of holders of Common Stock entitled to receive, a
         dividend or other distribution payable in securities of the Corporation
         other than shares of Common Stock, then and in each such event
         provision shall be made so that the holders of the Series A Preferred
         Stock shall receive upon conversion thereof in addition to the number
         of shares of Common Stock receivable thereupon, the amount of
         securities of the Corporation that they would have received had the
         Series A Preferred Stock been converted into Common Stock on the date
         of such event and had they thereafter, during the period from the date
         of such event to and including the conversion date, retained such
         securities receivable by them as aforesaid during such period, giving
         application to all adjustments called for during such period under this
         paragraph with respect to the rights of the holders of the Series A
         Preferred Stock; and provided further, however, that no such adjustment
         shall be made if the holders of Series A Preferred Stock simultaneously
         receive a dividend or other distribution of such securities in an
         amount equal to the amount of such securities as they would have
         received if all outstanding shares of Series A Preferred Stock had been
         converted into Common Stock on the date of such event.

                                       9
<PAGE>   10

                  (h) ADJUSTMENT FOR RECLASSIFICATION, EXCHANGE, OR
         SUBSTITUTION. If the Common Stock issuable upon the conversion of the
         Series A Preferred Stock shall be changed into the same or a different
         number of shares of any class or classes of stock, whether by capital
         reorganization, reclassification, or otherwise (other than a
         subdivision or combination of shares or stock dividend provided for
         above, or a reorganization, merger, consolidation, or sale of assets
         provided for below), then and in each such event the holder of each
         such share of Series A Preferred Stock shall have the right thereafter
         to convert such share into the kind and amount of shares of stock and
         other securities and property receivable upon such reorganization,
         reclassification, or other change, by holders of the number of shares
         of Common Stock into which such shares of Series A Preferred Stock
         might have been converted immediately prior to such reorganization,
         reclassification, or change, all subject to further adjustment as
         provided herein.

                  (i) ADJUSTMENT FOR MERGER OR REORGANIZATION, ETC. In case of
         any consolidation or merger of the Corporation with or into another
         corporation or the sale of all or substantially all of the assets of
         the Corporation to another corporation (other than a consolidation,
         merger or sale which is not a Liquidation within the meaning of Section
         3), each share of Series A Preferred Stock shall thereafter be
         convertible (or shall be converted into a security which shall be
         convertible) into the kind and amount of shares of stock or other
         securities or property to which a holder of the number of shares of
         Common Stock of the Corporation deliverable upon conversion of such
         Series A Preferred Stock would have been entitled upon such
         consolidation, merger or sale; and, in such case, appropriate
         adjustment (as determined in good faith by the Board of Directors)
         shall be made in the application of the provisions in this Section 5
         set forth with respect to the rights and interest thereafter of the
         holders of the Series A Preferred Stock to the end that the provisions
         set forth in this Section 5 (including provisions with respect to
         changes in and other adjustments of the Series A Conversion Price)
         shall thereafter be applicable, as nearly as reasonably may be, in
         relation to any shares of stock or other property thereafter
         deliverable upon the conversion of the Series A Preferred Stock.

                  (j) NO IMPAIRMENT. The Corporation will not, by amendment of
         its Articles of Incorporation or Bylaws 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 Corporation, 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 A Preferred Stock against impairment.

                  (k) CERTIFICATE AS TO ADJUSTMENTS. Upon the occurrence of each
         adjustment or readjustment of the Series A Conversion Price pursuant to
         this Section 5, the Corporation at its expense shall promptly compute
         such adjustment or readjustment in accordance with the terms hereof and
         furnish to each holder of Series A Preferred Stock a certificate
         executed by the Chief Executive Officer of the Corporation setting
         forth such adjustment or readjustment and showing in detail the facts
         upon which such adjustment or readjustment is based. The Corporation
         shall, upon the written request at any time of any holder of Series A
         Preferred Stock, furnish or cause to be furnished to such holder a
         similar certificate setting forth (i) such adjustments and
         readjustments, (ii) the Series A Conversion Price then in effect, and
         (iii) the number of shares of Common Stock and the

                                       10
<PAGE>   11

         amount, if any, of other property which then would be received upon the
         conversion of Series A Preferred Stock.

                  (l) NOTICE OF RECORD DATE. In the event the Corporation shall
         propose at any time:

                           (I) to declare a dividend (or any other distribution)
                  on its Common Stock;

                           (II) to subdivide or combine its outstanding shares
                  of Common Stock;

                           (III) to cause any reclassification of the Common
                  Stock of the Corporation (other than a subdivision or
                  combination of its outstanding shares of Common Stock or a
                  stock dividend or stock distribution thereon), or any
                  consolidation or merger of the Corporation into or with
                  another corporation, or the sale of all or substantially all
                  of the assets of the Corporation;

                           (IV) to commence or to have commenced against the
                  Corporation a proceeding seeking involuntary or voluntary
                  dissolution, liquidation or winding up of the Corporation; or

                           (V) to offer for subscription pro rata to the holders
                  of any class or series of its stock any additional shares of
                  stock of any class or series or other rights;

then the Corporation shall cause to be filed at its principal office or at the
office of the transfer agent of the Series A Preferred Stock and shall cause to
be mailed to the holders of the Series A Preferred Stock at their last addresses
as shown on the records of the Corporation or such transfer agent, at least
twenty days prior to the date specified in (A) below or twenty days before the
date specified in (B) below, a notice stating

                  (A) the record date of such dividend, distribution,
         subdivision, combination, or subscription, or, if a record is not to be
         taken, the date as of which the holders of Common Stock of record to be
         entitled to such dividend, distribution, subdivision, combination or
         subscription, are to be determined, or

                  (B) the date on which such reclassification, consolidation,
         merger, sale, dissolution, liquidation or winding up is expected to
         become effective, and the date as of which it is expected that holders
         of Common Stock of record shall be entitled to exchange their shares of
         Common Stock for securities or other property deliverable upon such
         reclassification, consolidation, merger, sale, dissolution or winding
         up.

         6. REDEMPTION AT HOLDER'S OPTION.

                  (a) Each holder of Series A Preferred Stock shall have the
         right (the "Redemption Right"), in its sole discretion, to require the
         Corporation to redeem, in accordance with this Section 6, all or any
         portion of its outstanding shares of Series A Preferred Stock at a per
         share redemption price (the "Holder Redemption Price") equal to the sum
         of $4.07 plus any declared but unpaid dividends payable with respect to
         such shares of Series A Preferred Stock (appropriately adjusted for any
         recapitalization, stock

                                       11
<PAGE>   12

         combination, stock dividends, stock splits and the like). The
         Redemption Right shall be exercisable at any time after January 15,
         2004.

                  (b) A holder of Series A Preferred Stock may elect to exercise
         its Redemption Right pursuant to Section 6(a) by mailing prior written
         notice (a "Holder Redemption Notice") to the Corporation by certified
         mail, return receipt requested at least six months' prior to the
         requested date of exercise of the Redemption Right. The Holder
         Redemption Notice shall specify:

                           (i) the name of the holder of shares of Series A
                  Preferred Stock delivering such Holder Redemption Notice;

                           (ii) that such holder is exercising its option,
                  pursuant to this Section 6, to require the Corporation to
                  redeem shares of Series A Preferred Stock held by such holder;
                  and

                           (iii) the number of, and a description of, the shares
                  of Series A Preferred Stock to be subject to such redemption.

                  (c) Unless a Holder Redemption Notice is retracted at least 30
         days prior to the date set forth in the Holder Redemption Notice as
         provided in Section 6(f) below (the "Holder Redemption Date"), the
         Corporation shall pay to the holder of Series A Preferred Stock that is
         the subject of the Holder Redemption Notice the Holder Redemption Price
         on the Holder Redemption Date.

                  (d) In the case of any redemption pursuant to this Section 6,
         unless the Corporation defaults in the payment in full of the Holder
         Redemption Price, all rights of the holders of the shares of Series A
         Preferred Stock subject to such redemption by reason of their ownership
         of such shares shall cease on such Holder Redemption Date, except the
         right to receive the Holder Redemption Price on surrender to the
         Corporation of the certificates representing such shares. After the
         applicable Holder Redemption Date, the shares shall not be deemed to be
         outstanding and shall not be transferable on the books of the
         Corporation, except to the Corporation.

                  (e) Any shares of Series A Preferred Stock redeemed by the
         Corporation pursuant to this Section 6 shall be canceled and shall have
         the status of authorized and unissued preferred stock, without
         designation as to series.

                  (f) Any Holder Redemption Notice may be revoked by the holder
         or holders delivering such notice by notice of such revocation
         delivered within 30 days prior to the applicable Holder Redemption
         Date.

         7. MANDATORY CONVERSION.

                  (a) On the first Business Day following the effective Date of
         a Qualified Offering (the "Mandatory Conversion Date"), all outstanding
         shares of Series A Preferred Stock shall automatically be converted
         into shares of Common Stock at the then effective conversion rate.

                  (b) All holders of record of shares of Series A Preferred
         Stock will be given written notice of the Mandatory Conversion Date and
         the place designated for

                                       12
<PAGE>   13

         mandatory conversion of all shares of Series A Preferred Stock pursuant
         to this Section 7. Such notice shall be sent by first class or
         registered mail, postage prepaid, to each record holder of Series A
         Preferred Stock at such holder's address last shown on the records of
         the transfer agent for the Series A Preferred Stock, as the case may be
         (or the records of the Corporation, if it serves as its own transfer
         agent). Upon receipt of such notice, each holder of shares of Series A
         Preferred Stock shall surrender his or its certificate or certificates
         for all such shares to the Corporation at the place designated in such
         notice, and shall thereafter receive certificates for the number of
         shares of Common Stock to which such holder is entitled pursuant to
         this Section 7. On the Mandatory Conversion Date, all rights with
         respect to the Series A Preferred Stock so converted, including the
         rights associated therewith, if any, to receive notices and vote, will
         terminate, except only the rights of the holders thereof, upon
         surrender of their certificate or certificates therefor, to receive
         certificates for the number of shares of Common Stock or cash payment
         for any fraction thereof, into which such Series A Preferred Stock has
         been converted, and payment of any declared but unpaid dividends
         thereon. If so required by the Corporation, certificates surrendered
         for conversion shall be endorsed or accompanied by written instrument
         or instruments of transfer, in form reasonably satisfactory to the
         Corporation, duly executed by the registered holder or by his or its
         attorney duly authorized in writing. As soon as practicable after the
         Mandatory Conversion Date and the surrender of the certificate or
         certificates for Series A Preferred Stock, the Corporation shall cause
         to be issued and delivered to such holder, or on his or its written
         order, a certificate or certificates for the number of full shares of
         Common Stock issuable on such conversion in accordance with the
         provisions hereof and cash as provided in Subsection 5(b) in respect of
         any fraction of a share of Common Stock otherwise issuable upon such
         conversion.

                  (c) All certificates evidencing shares of Series A Preferred
         Stock which are required to be surrendered for conversion in accordance
         with the provisions hereof shall, from and after the Mandatory
         Conversion Date, be deemed to have been retired and canceled and the
         shares of Series A Preferred Stock represented thereby converted into
         Common Stock for all purposes, notwithstanding the failure of the
         holder or holders thereof to surrender such certificates on or prior to
         such date. The Corporation may thereafter take such appropriate action
         (without the need for stockholder action) as may be necessary to reduce
         the authorized Series A Preferred Stock accordingly.

                  (d) Any Series A Preferred Stock converted pursuant to this
         Section 7 will be cancelled and will not under any circumstances be
         reissued, sold or transferred and the Corporation may from time to time
         take such appropriate action as may be necessary to reduce the
         authorized Series A Preferred Stock accordingly.

         8. DEFINITIONS.

         As used in this Certificate of Designation, and unless the context
requires a different meaning, the following terms have the meanings indicated:

                  (i) "Business Day" shall mean each Monday, Tuesday, Wednesday,
         Thursday and Friday which is not a day on which banking institutions in
         the City of New York are authorized or obligated by law or executive
         order to close.

                                       13
<PAGE>   14

                  (ii) "Common Stock" shall mean the Common Stock of the
         Corporation, par value $0.0001 per share.

                  (iii) "Investor Rights Agreement" means that certain Investor
         Rights Agreement dated May _, 2000, among the Corporation, the holders
         of Series A Preferred Stock and the other shareholders of the
         Corporation.

                  (iv) "Junior Stock" shall mean any of the Corporation's Common
         Stock and any other stock issued by the Corporation other than Series A
         Preferred Stock.

                  (v) "Original Issue Date" shall mean the date on which a share
         of Series A Preferred Stock was first issued.

                  (vi) "Qualified Public Offering" shall mean the closing of an
         underwritten public offering of shares of Common Stock pursuant to an
         effective registration statement filed with the Securities and Exchange
         Commission for a public offering and sale of securities of the
         Corporation (other than a registration statement on Form S-8 or Form
         S-4, or their successors, or any other form for a similar limited
         purpose, or any registration statement covering only securities
         proposed to be issued in exchange for securities or assets of another
         corporation) that (A) results in gross proceeds to the Corporation of
         at least $25 million, (B) is at an offering price per share of at least
         $8.14 at the time of such offering (as such amount may be adjusted for
         all stock splits, consolidations and other events causing adjustments
         to the Series A Conversion Price) and (C) which does not result from a
         merger of similar transaction with an existing public company, the
         shares of which are registered under the Securities Exchange Act of
         1934 and publicly traded.

                            [signature page follows]

                                       14
<PAGE>   15

         IN WITNESS WHEREOF, the Corporation has caused its corporate seal to be
affixed hereto and this Certificate of Designation to be signed by its President
and attested by its Secretary this 30th day of May, 2000.

INTERCONTINENTAL TELECOMMUNICATIONS CORP.

By: /s/ William St. Laurent
    ---------------------------------
    Name:  WILLIAM ST. LAURENT
    Title: PRESIDENT

ATTEST:

/s/ William St. Laurent
-------------------------------------
         Secretary

[Corporate Seal]

                                       15

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