Document:

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                                                                    EXHIBIT 10.2

                             INTERCREDITOR AGREEMENT

         This INTERCREDITOR AGREEMENT ("Agreement") is dated January 31, 2000,
between FLEET CAPITAL CORPORATION, a Rhode Island corporation, in its capacity
as collateral and administrative agent under the Loan Agreement referred to
below (in such capacities, and together with any permitted successors and
assigns in such capacities, the "Agent"), and THE BANK OF NEW YORK, as successor
to IBJ Whitehall Bank & Trust Company, formerly known as IBJ Schroder Bank &
Trust Company, a New York banking corporation, in its capacity as trustee under
the Indenture referred to below and as collateral agent under the General
Security Agreement and Mortgages referred to below (in such capacities, and
together with any permitted successors and assigns in such capacities, the
"Senior Note Trustee").

                                   WITNESSETH:

         WHEREAS, Tom's Foods Inc., a Delaware corporation ("Borrower"), Agent
and various financial institutions from time to time party thereto as lenders
("Lenders") have entered or are about to enter into that certain Loan and
Security Agreement dated on or about the date hereof (such Loan and Security
Agreement, as amended, modified, supplemented, renewed, extended, restated or
replaced from time to time, the "Loan Agreement"; together with all documents,
agreements, guarantees and other instruments now or hereafter evidencing or
securing all or any portion of the obligations of Borrower under the Loan
Agreement or any other agreements or documents executed pursuant thereto, as the
same may now exist or may hereafter be amended, modified, supplemented, renewed,
extended, restated or replaced from time to time, collectively, the "Loan
Documents"); and

         WHEREAS, pursuant to the Loan Agreement, Borrower has, among other
things, granted to Agent, for its benefit and the ratable benefit of Lenders, a
security interest in and lien upon certain personal property as more
particularly described in Exhibit A annexed hereto (collectively, the "Lender
Collateral"); and

         WHEREAS, Borrower and the Senior Note Trustee have entered into that
certain Indenture, dated as of October 14, 1997 (as amended, modified,
supplemented, renewed, extended, exchanged, restated or replaced from time to
time, the "Indenture") pursuant to which Borrower has issued its 10 1/2% Senior
Secured Notes due 2004 (the "Senior Notes"; together with the Indenture and all
documents, agreements, guarantees and other instruments now or hereafter
evidencing or securing all or any portion of the obligations of Borrower under
the Indenture and the Senior Notes or any other agreements or documents executed
pursuant thereto, as the same may now exist or may hereafter be amended,
modified, supplemented, renewed, extended, restated or replaced from time to
time, the "Senior Note Agreements"); and

         WHEREAS, pursuant to that certain General Security Agreement, dated as
of October 14, 1997, Borrower has, among other things, granted to the Senior
Note Trustee, for its benefit and the ratable benefit of the holders of Senior
Notes, a security interest in and lien upon certain real and personal property
as more particularly described in Exhibit B annexed hereto (collectively, the
"Senior Note Collateral"); and

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         WHEREAS, Borrower has also executed and delivered, in each case in
favor of the Senior Note Trustee, as mortgagee, beneficiary or grantee, for its
benefit and the ratable benefit of the holders of Senior Notes, certain
mortgages, deeds of trust and deeds to secure debt, covering, among other real
property, Borrower's real property located in Columbus, Georgia, Corsicana,
Texas and Fresno, California (collectively, and together with any additional
mortgages, deeds of trust, deeds to secure debt or other instruments now or
hereafter creating or evidencing a lien in favor of the Senior Note Trustee, as
mortgagee, beneficiary or grantee, for its benefit and the ratable benefit of
the holders of Senior Notes, covering any real property now owned or hereafter
acquired by Borrower, in each case, as amended, modified, supplemented, renewed,
extended, restated or replaced from time to time, the "Mortgages"); and

         WHEREAS, certain of the Lender Collateral, including, without
limitation, Inventory and Records (each as defined in Exhibit A annexed hereto)
relating thereto, may from time to time be located on the Premises (as defined
in Exhibit B annexed hereto) or on any after-acquired real property that may
from time to time be covered by the Mortgages (such real property, including all
improvements and fixtures located thereon, collectively, the "Mortgaged
Premises");

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as
follows:

SECTION 1.  ACKNOWLEDGMENT OF LIENS; INTELLECTUAL PROPERTY

         1.1      Agent hereby acknowledges that, pursuant to the Senior Note
Agreements, the Senior Note Trustee has been granted (for its benefit and for
the ratable benefit of the holders of the Senior Notes) security interests in
and liens upon all of the Senior Note Collateral, including, without limitation,
the Intellectual Property (as defined in Exhibit B annexed hereto) and further
acknowledges and agrees that Agent has not been granted and will not acquire any
security interests in or liens upon any of the Senior Note Collateral, other
than the Intellectual Property for the limited purposes set forth in Exhibit A
annexed hereto. The Senior Note Trustee hereby acknowledges that Agent has been
granted security interests in and liens upon all of the Lender Collateral,
including, without limitation, the Intellectual Property for the limited purpose
set forth in Exhibit A annexed hereto pursuant to the Loan Documents, and
further acknowledges and agrees that Agent shall have the right, and the Senior
Note Trustee hereby recognizes and agrees not to oppose or disturb Agent's
rights, to use, without charge, the Intellectual Property for so long as Agent
in good faith deems necessary in order for Agent to exercise its rights or
remedies under the Loan Documents with respect to the other Lender Collateral;

         1.2      Notwithstanding the order or time of attachment, or the order,
time or manner of perfection, or the order or time of filing or recordation of
any document or instrument, or other method of perfecting a security interest in
favor of the Senior Note Trustee or Agent in the Lender Collateral and/or the
Senior Note Collateral, as the case may be, and notwithstanding any conflicting
terms or conditions contained in any of the Senior Note Agreements or Loan
Documents:

                  (a)      Agent shall have senior security interests in and
         liens upon the Lender Collateral and the Senior Note Trustee shall in
         no event have any lien upon or security interest in or any other rights
         or claims with respect to all or any portion thereof, except as
         specifically provided in Section 1.2(c) of this Agreement;

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                  (b)      the Senior Note Trustee shall have senior security
         interests and liens upon the Senior Note Collateral and Agent shall in
         no event have any lien upon or security interest in or any other rights
         or claims with respect to all or any portion thereof, except as
         specifically provided in Section 1.2(c) and elsewhere in this
         Agreement;

                  (c)      until all of the obligations, liabilities and
         indebtedness of Borrower to the Senior Note Trustee arising under or in
         connection with the Senior Note Agreements (the "Senior Note Debt") are
         paid in full, and except for Agent's rights under this Agreement with
         respect to the Intellectual Property, the security interests and liens
         granted to the Senior Note Trustee under the Senior Note Agreements in
         and upon the Intellectual Property have and shall have priority over
         the security interests and liens granted to Agent under the Loan
         Documents in and upon the Intellectual Property, and such security
         interests and liens of Agent in and upon the Intellectual Property are
         and shall be, in all respects (except for Agent's rights under this
         Agreement), subject and subordinate to the security interests and liens
         of the Senior Note Trustee in and upon the Intellectual Property; and

                  (d)      the security interests and liens and priorities
         thereof provided in this Section 1.2 shall not be altered or otherwise
         affected by (i) any amendment, modification, supplement, extension,
         renewal, restatement, replacement or refinancing of all or any part of
         the obligations, liabilities and indebtedness of Borrower to Agent and
         Lenders arising under or in connection with the Loan Documents (the
         "Lender Debt") or the Senior Note Debt or (ii) any action or inaction
         which any of the Senior Note Trustee or Agent may take or fail to take
         in respect of the Senior Note Collateral or Lender Collateral.

         1.3      The Senior Note Trustee agrees that it will not contest the
validity, perfection, priority or enforceability of any of the security
interests or liens of Agent upon the Lender Collateral and Agent agrees that it
will not contest the validity, perfection, priority or enforceability of any of
the security interests or liens of the Senior Note Trustee upon the Senior Note
Collateral. As between Agent and the Senior Note Trustee, the terms of this
Agreement shall govern even if part or all of the Senior Note Debt or Lender
Debt or any of the security interests or liens securing payment and performance
thereof are avoided, disallowed, set aside or otherwise invalidated in any
judicial proceeding or otherwise.

         1.4      Until such time as the Senior Note Debt is paid and satisfied
in full, Senior Note Trustee shall, subject to Agent's rights under the other
provisions of this Agreement, have the right to manage, perform and enforce the
terms of the Senior Note Agreements with respect to the Intellectual Property,
to exercise and enforce all privileges and rights thereunder according to its
discretion and the exercise of its business judgment, including, without
limitation, the right to hold, prepare for sale, sell, license, lease, dispose
of, or liquidate such Intellectual Property. Agent shall not enforce its
security interests in the Intellectual Property in any manner that would
interfere with the security interests of the Senior Note Trustee therein,
including, without limitation, by way of an outright foreclosure sale of the
Intellectual Property itself; provided, however, that Agent shall nevertheless
be entitled to enforce its security interests with respect to the Intellectual
Property to the extent required in order to enable Agent to exercise its rights
or remedies under the Loan Documents with respect to the other Lender
Collateral, including, without limitation, the fulfillment of orders, the
manufacturing and processing of Inventory and the products thereof, and the
marketing, preparation for sale, distribution, sale or other disposition of
inventory and the products thereof, including the receipt and retention by Agent
of the proceeds of Inventory and the products thereof.

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SECTION 2.   MORTGAGED PREMISES

         2.1      No Claim on Collateral. The Senior Note Trustee hereby waives
pursuant to the Indenture for itself and on behalf of each present and future
holder of Senior Notes, each and every right which the Senior Note Trustee or
any holder of Senior Notes now or at any time hereafter may have under
applicable law, by virtue of the Mortgages or Borrower's or Agent's occupation
of the Mortgaged Premises, to claim or assert any lien, right, claim or title to
any or all of the Lender Collateral comprised of tangible personal property
located thereon, including, without limitation, any Inventory or Records to the
extent relating thereto, that now or hereafter may be stored in or located on
the Mortgaged Premises or Equipment (as defined in Exhibit B annexed hereto).

         2.2      Use of Mortgaged Premises, Equipment, etc. During the one
hundred eighty (180) day period following receipt by Agent of written notice
from the Senior Note Trustee notifying Agent of the acceleration of the Senior
Notes by reason of an uncured Event of Default under (and as defined in) the
Senior Notes and the Indenture (such period, the "Permitted Use Period"):

                  (a)      Agent may enter and remain upon one or more of the
         Mortgaged Premises, without obligation to pay rent or other
         compensation to the Senior Note Trustee or the holders of Senior Notes
         (other than expense reimbursement as provided in clause (iii) below),
         and may use any Equipment constituting Senior Note Collateral, for the
         purposes of manufacturing, processing, marketing, preparation for sale,
         distribution and sale of any or all of the Inventory or other
         realization upon Lender Collateral; provided, however, that Agent shall
         (i) promptly notify the Senior Note Trustee of Agent's entry upon the
         Mortgaged Premises, (ii) promptly repair or replace any Senior Note
         Collateral destroyed or damaged in any respect by Agent or any of
         Agent's employees or agents as a result of such use, (iii) reimburse
         the Senior Note Trustee for all reasonable out-of-pocket expenses
         actually incurred by the Senior Note Trustee in connection with or
         arising out of Agent's use of the Senior Note Collateral, but only such
         costs and expenses directly attributable to that portion or portions of
         the Senior Note Collateral actually used by Agent pursuant to the
         rights granted under the provisions of this Section 2.2(a), and (iv)
         indemnify and hold Senior Note Trustee harmless from and against all
         losses, costs, damages or expenses (including reasonable attorneys'
         fees and disbursements) suffered or incurred by Senior Note Trustee a
         direct result of claims for personal injury directly caused by the
         gross negligence or willful misconduct of Agent or its agents or
         designees in the exercise of the rights granted to Agent under this
         Section 2.2(a); provided that under no circumstances shall Agent
         indemnify or be responsible to the Senior Note Trustee for lost profits
         or other special or consequential damages, and (v) pay the Senior Note
         Trustee a per diem storage charge for the period (if any) after the
         Permitted Use Period (at the then prevailing market rate based upon the
         volume of Inventory subject to the security interests and liens of
         Agent from time to time thereafter remaining at the Mortgaged Premises)
         with respect to any Inventory that remains at the Mortgaged Premises
         after the expiration of the Permitted Use Period, unless and until
         Agent has notified the Senior Note Trustee in writing that Agent has
         abandoned or released its security interests and liens in and upon such
         remaining Inventory. After Agent has given such notice to the Senior
         Note Trustee that Agent has abandoned or released its security
         interests and liens in and upon such remaining Inventory, Agent shall
         have no further liability to the Senior Note Trustee for storage
         charges, costs and expenses or indemnification, except for any such
         liabilities accrued prior to such notice; and

                  (b)      the Senior Note Trustee will cooperate with Agent in
         permitting Agent to have access to the Lender Collateral located on the
         Mortgaged Premises and will not delay, hinder or

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         impede Agent's access to, entry upon or use of the Mortgaged Premises
         or any Equipment and will not interfere with the manufacturing,
         processing, marketing, preparation for sale, distribution or sale of
         any of the Inventory or other realization upon Lender Collateral on or
         from, or removal of any of the Inventory or Records relating thereto by
         Agent from, any of the Equipment or Mortgaged Premises; provided,
         however, that the provisions of this subparagraph (b) shall in no event
         be deemed to prohibit the Senior Note Trustee from (i) enforcing or
         exercising, and the Senior Note Trustee shall have the right at any
         time to enforce or exercise, any and all of its rights and remedies
         under the Senior Note Agreements, or at law, or (ii) seeking to
         foreclose or realize upon (judicially or nonjudicially) its lien upon
         the Senior Note Collateral or assert any claim or interest therein at
         any time; provided, that, in each case under clauses (i) or (ii), such
         enforcement, exercise, foreclosure, realization or assertion shall be
         expressly subject to Agent's right to use the Mortgaged Premises,
         Equipment and Intellectual Property for the purposes set forth herein.

         2.3      Extension of Permitted Use Period. If, as a result of the
application of any bankruptcy, insolvency, reorganization, receivership or other
similar law, Agent is prevented for any period of time during the Permitted Use
Period from exercising its rights and remedies with respect to any Lender
Collateral located on the Mortgaged Premises or otherwise granted hereunder, the
Permitted Use Period shall be extended by such period of time.

SECTION 3.   MISCELLANEOUS

         3.1      Representations.

                  (a)      The Senior Note Trustee represents and warrants to
         Agent that:

                           (i)      the execution, delivery and performance of
         this Agreement by the Senior Note Trustee is within its powers in its
         capacity as Senior Note Trustee for the holders of Senior Notes, has
         been duly directed pursuant to the Indenture, and does not contravene
         any law, any provision of any of the Senior Note Agreements or any
         agreement to which the Senior Note Trustee is a party or by which it is
         bound, and shall be binding upon the Senior Note Trustee, any successor
         or replacement trustee under the Senior Note Indenture, as well as all
         existing and future holders of Senior Notes;

                           (ii)     this Agreement constitutes the legal, valid
         and binding obligation of Senior Note Trustee, enforceable according to
         its terms, except to the extent that (x) the foregoing may be limited
         by any applicable bankruptcy, insolvency, reorganization, moratorium or
         similar laws from time to time generally affecting the enforcement of
         creditors' rights and remedies and by general principles of equity
         (regardless of whether such enforceability is considered in a
         proceeding in equity or at law) and (y) the same may be subject to the
         discretion of the court before which any proceeding with respect
         thereto may be brought.

                  (b)      Agent hereby represents and warrants to the Senior
         Note Trustee that:

                           (i)      the execution, delivery and performance of
         this Agreement by Agent is within its powers, has been duly authorized
         by Agent and does not contravene any law, any provision of the Loan
         Agreement, or any agreement to which Agent is a party or by which it is
         bound; and
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                           (ii)     this Agreement constitutes the legal, valid
         and binding obligation of Agent, enforceable according to its terms,
         except to the extent that (x) the foregoing may be limited by any
         applicable bankruptcy, insolvency, reorganization, moratorium or
         similar laws from time to time generally affecting the enforcement of
         creditors' rights and remedies and by general principles of equity
         (regardless of whether such enforceability is considered in a
         proceeding in equity or at law) and (y) the same may be subject to the
         discretion of the court before which any proceeding with respect
         thereto may be brought.

         3.2      Successors and Assigns.

                  (a)      This Agreement shall be binding upon each of Agent,
         Lenders, the Senior Note Trustee and the holders of Senior Notes, and
         their respective successors, participants and assigns, and shall inure
         to the benefit of each of them and their respective successors,
         participants and assigns; provided, however, that any successor or
         assignee of either party hereto shall in no event be entitled to the
         rights and benefits hereunder until such time as such successor or
         assignee shall have (i) executed and delivered a supplement to this
         Agreement pursuant to which (x) it agrees to be bound by all of the
         terms and provisions hereof and (y) makes substantially the same
         representations and warranties as those made by its predecessor in
         interest pursuant to Section 3 of this Agreement and (ii) delivered to
         the counterparty hereto such evidence as may be reasonably requested by
         such counterparty of such successor or assignee's power and authority
         to perform its obligations hereunder. Agent shall at all times be
         entitled to deal exclusively with the Senior Note Trustee for all
         matters hereunder notwithstanding any sale, assignment, participation
         or other transfer by any holder of Senior Notes of any interest in the
         Senior Note Debt or the Senior Note Collateral.

                  (b)      Each Lender shall have the right to grant
         participations in or otherwise sell, assign, transfer, negotiate all or
         any part of, or any interest in, the Lender Debt and the Lender
         Collateral; provided, that, the Senior Note Trustee shall not be
         obligated to give any notices to or otherwise in any manner deal
         directly with any participant in the Lender Debt, and no participant
         shall be entitled to any rights or benefits under this Agreement,
         except through Agent.

                  (c)      Senior Note Trustee agrees, at the sole cost and
         expense of Borrower, to execute and deliver an agreement containing
         terms substantially identical to those contained herein in favor of any
         third person (or any agent for such third person) who also executes
         such agreement and succeeds to or replaces any or all of Lenders'
         financing of Borrower, whether such successor financing or replacement
         occurs by transfer, assignment, "take out" or any other means or
         vehicle, provided only that such successor or replacement financing is
         not prohibited by the then-current terms of the Senior Note Agreements.

         3.3      No Third Parties Benefitted. This Agreement is solely for the
benefit of the Agent, Lenders, the Senior Note Trustee and the holders of Senior
Notes, and their respective successors, participants and assigns, and no other
person (including, without limitation, Borrower or a creditor or creditors'
representative of Borrower, other than Agent, Lenders the Senior Note Trustee
and the holders of Senior Notes and their respective successors, participants
and assigns) shall have any right, benefit, priority or interest under, or
because of the existence of, this Agreement.

         3.4      Disclosures; Non-Reliance. Each of Agent, Lenders, the Senior
Note Trustee, and the holders of Senior Notes have the means to be, and shall in
the future remain, fully informed as to the financial condition and other
affairs of Borrower. Agent and Lenders shall not have any obligation to or

<PAGE>   7
duty to disclose any such information to the Senior Note Trustee or the holders
of Senior Notes, and the Senior Note Trustee and holders of Senior Notes shall
have no obligation or duty to disclose any such information to Agent or Lenders.
Except as expressly set forth in this Agreement, the parties hereto have not
otherwise made to each other, nor do they hereby make to each other, any
agreements, representations or warranties, express or implied, nor do they
assume any liability to each other with respect to any matter.

         3.5      Exercise of Rights.

                  (a)      Agent shall not be liable to the Senior Note Trustee
         or the holders of Senior Notes, and the Senior Note Trustee and the
         holders of the Senior Notes shall not be liable to Agent or Lenders, by
         reason of their respective exercise or enforcement of their rights
         under this Agreement, or of their respective rights or remedies under
         the Loan Agreement or the Senior Note Agreements, as the case may be,
         except for any such exercise of rights or remedies prohibited by this
         Agreement.

                  (b)      In no event will Agent or Lenders be liable to
         account to the Senior Note Trustee or the holders of Senior Notes for
         any proceeds of asset dispositions that may be received by Agent or
         Lenders and applied to the Lender Debt, whether or not Agent or Lenders
         at any time have re-lent or does re-lend such sums or any portion
         thereof to Borrower. It shall be the sole responsibility of the Senior
         Note Trustee to monitor the disposition by Borrower of the Senior Note
         Collateral or other assets of Borrower and to require the Borrower (but
         not the Agent or Lenders) to account to the Senior Note Trustee and/or
         the holders of Senior Notes for the application and disposition of the
         proceeds thereof (in each case to the extent provided in the Senior
         Note Agreements).

                  (c)      In no event will the Senior Note Trustee or the
         holders of Senior Notes be liable to account to Agent or Lenders for
         any proceeds of asset dispositions that may be received by the Senior
         Note Trustee and applied to the Senior Note Debt. It shall be the sole
         responsibility of Agent and Lenders to monitor the disposition by
         Borrower of the Lender Collateral or other assets of Borrower and to
         require the Borrower (but not the Senior Note Trustee or the holders of
         the Senior Notes) to account to Agent and Lenders for the application
         and disposition of the proceeds thereof (in each case to the extent
         provided in the Loan Documents).

                  (d)      In the event that the Senior Note Trustee or Agent
         shall, in the exercise of its respective rights under the Senior Note
         Agreements or Loan Documents, as the case may be, receive physical
         possession of personal property of Borrower, other than, in the case of
         receipt by Agent, funds credited to, or transferred to Agent through,
         the lockbox, blocked accounts or other depository account arrangements
         established pursuant to the Loan Documents, then, if the receiving
         party has actual knowledge at the time of its receipt that such
         property represents the other party's collateral as provided hereunder
         (i.e., such property represents Lender Collateral in the case of such
         property received by the Senior Note Trustee or any holder of Senior
         Notes, or represents Senior Note Collateral in the case of such
         property received by Agent or Lenders), then the receiving party shall
         notify the other party that it has received physical possession of such
         collateral and shall hold the same as bailee for perfection purposes
         only for the other party and shall, as promptly as practicable
         thereafter, make available or deliver to the other party such property,
         or, at the receiving party's option, retain possession of such property
         until a disposition is directed by a court of competent jurisdiction.

<PAGE>   8

                  (e)      Agent and Lenders may, without affecting its rights
         under this Agreement, extend, amend or in any way modify the terms of
         payment or performance of all or any portion of the Lender Debt or any
         other term or provision of the Loan Documents, without the consent of,
         and without giving notice thereof to the Senior Note Trustee or any
         holder of Senior Notes.

         3.6      Term. This Agreement is a continuing agreement and shall
remain in full force and effect until all of the Lender Debt has been fully paid
and satisfied and the Loan Agreement and all other Loan Documents have been
terminated.

         3.7      Notices. All notices and other communications provided for
hereunder shall be in writing sent to the applicable address for the party to be
notified as set forth on the signature pages of this Agreement, or as to each
party, to such other address as shall be designated by such party in a written
notice to the other party in accordance with this Section. Except with respect
to notices as to which actual receipt is required hereunder, all such notices
and communications shall be deemed to be validly served, given or delivered: (i)
five (5) business days following deposit in the United States mails, certified
mail, return receipt requested, with proper postage prepaid; (ii) one (1)
business day after sending, if sent by recognized overnight courier service with
instructions to deliver the next business day; (iii) upon delivery thereof, if
delivered by hand to the party to be notified; or (iv) upon telecopier
acknowledgment of receipt thereof, if telecopied to the specified telecopier
number for the party to be notified.

         3.8      Entire Agreement. This Agreement contains the entire agreement
of the parties hereto with respect to the subject matter hereof. No amendment or
modification of any of the provisions of this Agreement shall be deemed to be
made, nor any provision waived, unless the same shall be in writing signed by
the party against whom such amendment, modification or waiver is sought to be
enforced.

         3.9      Governing Law; Severability. This Agreement shall be governed
by and construed in accordance with the internal laws of the State of Georgia,
except that no doctrine of choice of law shall be used to apply the laws of any
other state or jurisdiction. Wherever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.

         3.10     Further Assurances. Each of the parties hereto shall execute
and file, if necessary, all such further documents and instruments, and perform
such other acts, as may be necessary to effectuate the purposes of this
Agreement.

<PAGE>   9

         3.11     Counterparts. This Agreement may be executed in any number of
counterparts, and by each of the parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized as of the day
and year first above written.

                                    FLEET CAPITAL CORPORATION, as Agent

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

                                    Address:

                                    300 Galleria Parkway
                                    Suite 800
                                    Atlanta, Georgia 30339
                                    Attention: Loan Administration
                                    Telecopier No.: (770) 859-2483

                                    THE BANK OF NEW
                                    YORK, as successor to IBJ
                                    Whitehall Bank & Trust
                                    Company, formerly known as
                                    IBJ Schroder Bank & Trust
                                    Company, as Senior Note
                                    Trustee

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

                                    Address:

                                    101 Barclay Street
                                    New York, New York 10286
                                    Attention:  Mr. Terrence Rawlins
                                    Telecopier No.: (212) 815-5915

<PAGE>   10

                          ACKNOWLEDGMENT AND AGREEMENT

         The undersigned hereby acknowledges (i) the terms of the foregoing
Intercreditor Agreement between the Senior Note Trustee and Agent (the
"Agreement") and agrees that it will, together with its successors and assigns,
be bound by the terms thereof and (ii) that it does not and will not receive any
right, benefit, priority or interest under or because of the existence of the
Agreement.

         The undersigned agrees to execute and deliver such additional documents
and take such additional action as may be reasonably requested by Agent or the
Senior Note Trustee to effectuate the provisions and purposes of the Agreement.

                                    TOM'S FOODS INC.

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

                                    Address:

                                    900 8th Street
                                    P.O. Box 60
                                    Columbus, Georgia
                                    Attention: Mr. S. Albert Gaston
                                    Telecopier No.: (706) 323-8231

<PAGE>   11

                                                                       EXHIBIT A

                                LENDER COLLATERAL

         "Lender Collateral" shall mean all of Borrower's right, title and
interest in and to the following property and interests in property of Borrower,
whether now owned or hereafter acquired or existing, and wherever located:

         (a)      all present and future rights of Borrower to payment for goods
sold or leased or for services rendered, which are not evidenced by instruments
or chattel paper, and whether or not earned by performance (collectively,
"Accounts");

         (b)      all present and future contract rights, chattel paper,
documents, instruments, letters of credit, bankers' acceptances and guaranties
to the extent relating to Accounts, Inventory or other Lender Collateral, all
present and future Distributor/Franchisee Receivables (as defined in the Loan
Agreement as in effect on the date hereof) and all present and future general
intangibles for the payment of money (including claims and choses in action) to
the extent relating to Accounts, Inventory or other Lender Collateral;

         (c)      all present and future monies, securities, credit balances,
deposits, deposit accounts and other property of Borrower now or hereafter held
or received by or in transit to Agent, any Lender or any of their affiliates,
or, to the extent relating to Accounts, Inventory or other Lender Collateral,
held at or received by or in transit to any other depository or other
institution from or for the account of Borrower, in each case whether for
safekeeping, pledge, custody, transmission, collection or otherwise, and all
present and future liens, security interests, rights, remedies, title and
interest in, to and in respect of Accounts, Inventory or other Lender
Collateral, including, without limitation, (i) rights and remedies under or
relating to guaranties, contracts of suretyship, letters of credit and credit
and other insurance related to Accounts, Inventory or other Lender Collateral,
(ii) rights of stoppage in transit, replevin, repossession, reclamation and
other rights and remedies of an unpaid vendor, lienor or secured party relating
to Accounts, Inventory or other Lender Collateral, (iii) goods described in
invoices, documents, contracts or instruments with respect to, or otherwise
representing or evidencing, Accounts, Inventory or other Lender Collateral,
including, without limitation, returned, repossessed and reclaimed goods, and
(iv) deposits by and property of account debtors or other persons securing the
obligations of account debtors;

         (d)      all now owned and hereafter existing or acquired raw
materials, work-in-process, finished goods and all other inventory of whatsoever
kind or nature, wherever located (collectively, "Inventory");

         (e)      all present and future trademarks, tradenames and service
marks (together with the goodwill of the business symbolized thereby), patents,
copyrights and other Intellectual Property (as defined in Exhibit B to this
Agreement) affixed to or appearing on or relating to any Inventory or the
products thereof or other Lender Collateral or otherwise used in the
manufacturing, processing, marketing, preparation for sale, distribution or sale
of Inventory or the products thereof or other Lender Collateral; provided,
however, that the security interest granted to Agent in trademarks, tradenames
and service marks (and the goodwill of the business symbolized thereby),
patents, copyrights and other Intellectual Property described in this
subparagraph (e) shall be limited to such right, title and interest as shall be
required in order for Agent to exercise its rights and remedies under the Loan
Agreement, including the fulfillment of orders, the manufacturing and processing
of Inventory and the products

<PAGE>   12

thereof, and the marketing, preparation for sale, distribution, sale or other
disposition of Inventory and the products thereof, including the receipt and
retention by Agent of the proceeds thereof;

         (f)      all books of account of every kind or nature, purchase and
sale agreements, invoices, ledger cards, bills of lading and other shipping
evidence, statements, correspondence, memoranda, credit file, and other data to
the extent relating to the Lender Collateral or any account debtor, together
with the tapes, disks, diskettes and other data and software storage media and
devices, file cabinets or containers in or on which the foregoing are stored,
including any rights of Borrower with respect to the foregoing maintained with
or by any other person (collectively, "Records"); and

         (g)      all products and proceeds of the foregoing, in any form,
including, without limitation, insurance proceeds and all claims against third
parties for loss or damages to or destruction of any or all of the foregoing,
and also including all proceeds of business interruption insurance and, to the
extent relating to Accounts, Inventory or other Lender Collateral, all other
insurance proceeds, whether or not constituting proceeds of any of the other
Lender Collateral.

<PAGE>   13

                                                                       EXHIBIT B

                             SENIOR NOTE COLLATERAL

         "Senior Note Collateral" shall mean all the property and assets of
Borrower, both real and personal, movable and immovable, tangible and intangible
of whatsoever nature and kind now owned or hereafter acquired and wherever
located, including, without limitation, the following:

         (a)      Any and all present estates or interests of Borrower in land,
together with all Borrower's reversionary rights in and to any and all lots,
parcels, alterations, partitions, easements, rights-of-way, sidewalks, strips
and gores of land, drives, roads, curbs, streets, lanes, ways, alleys, passages,
passageways, sewer rights, waters, woods, water courses, water rights, mineral,
gas and oil rights, power, air, light and other rights, estates, titles,
interests, privileges, liberties, servitudes, licenses, tenements, hereditaments
and appurtenances whatsoever, in any way belonging, relating or appertaining
thereto, or any part thereof, or which hereafter shall in any way belong, relate
or be appurtenant thereto (collectively, the "Land");

         (b)      Any and all estates or interests of Borrower in the buildings,
structures and other improvements and any and all alterations now or hereafter
located or erected on the Land, including, without limitation, attachments,
walks and ways (collectively, the "Improvements"; together with the Land, the
"Premises");

         (c)      Any and all permits, licenses, franchises, certificates,
consents, approvals and authorizations, however characterized, issued or in any
way furnished, whether necessary or not, for the operation and use of the
Premises, including, without limitation, building permits, certificates of
occupancy, environmental certificates, industrial permits, or licenses and
certificates of operation;

         (d)      Any and all interest of Borrower in (i) equipment of any kind
or nature and located at or used in connection with the operation of Borrower's
business conducted at the Premises, whether or not affixed to the Premises, and
all machinery, apparatus, equipment, fittings, fixtures, improvements and
articles of personal property of every kind and nature whatsoever now or
hereafter attached or affixed to the Premises or used in connection with the use
and enjoyment of the Premises or the maintenance or preservation thereof,
including, without limitation, all utility systems, fire sprinkler and alarm
systems or other fire prevention or extinguishing apparatus materials, HVAC
equipment, boilers, electronic data processing equipment (to the extent relating
to the Premises or any equipment), telecommunications equipment or computer
equipment (to the extent relating to the Premises or any equipment), office
machinery, switchboards, computers and computer hardware and software (whether
owned or licensed), all indoor or outdoor furniture, tools, materials,
refrigeration, electronic monitoring, water or lighting systems, power,
sanitation, waste removal, elevators, maintenance or other systems or equipment,
and all other articles used or useful in connection with the use or operation of
any part of the Premises; (ii) all modifications, renewals, improvements,
alterations, repairs, substitutions, attachments, additions, accessories and
other property now or hereafter affixed thereto or used in connection with the
operation of any part of the Premises as such, and (iii) all replacements and
all other parts therefor (collectively, the "Equipment");

         (e)      All Borrower's right, title and interest, as landlord,
licensor or grantor, in all leases and subleases of space, tenancies, lettings,
occupancy or concession agreements, all books and records which contain payments
under such leases, subleases, occupancy or concession agreements, written or
otherwise, now existing or hereafter entered into to the extent relating in any
manner to the Premises or

<PAGE>   14

the Equipment and any and all amendments, modifications, supplements and
renewals of any thereof (each such lease, sublease, occupancy or concession
agreement, together with any such amendment, modification, supplement or
renewal, a "Lease"), whether now in effect or hereafter coming into effect,
including, without limitation, all rents, additional rents, rental income,
receipts, management fees payable by tenants, cash, guarantees, letters of
credit, bonds, sureties or securities deposited thereunder to secure performance
of the lessee's, or obligee's obligations thereunder, revenues, earnings,
issues, profits and income, advance rental payments, payments incident to
assignment, sublease or surrender of a Lease, claims for forfeited deposits,
claims for damages and awards, now due or hereafter to become due, with respect
to any Lease (collectively, the "Rents");

         (f)      All general intangibles and contract rights of every kind and
nature to the extent relating to any item or type of Senior Note Collateral,
and, in any event, without limitation, any and all goodwill, descriptions, name
plates, claims, choses-in-action, causes of actions, catalogs, confidential
information, consulting agreements, engineering contracts to the extent relating
to the Senior Note Collateral and such other intangible assets which relate to
the goodwill of the business of Borrower to the extent connected with the use
of, or symbolized by, any of the Intellectual Property and rights to refund or
indemnification to the extent the foregoing relate to any item or type of Senior
Note Collateral, deposits and deposit accounts, letters of credit, documents,
instruments, chattel paper, bankers' acceptances and guarantees, and income tax
refunds to the extent relating to any item or type of Senior Note Collateral,
claims for tax or other refunds against any federal, state or local government,
or any agency or authority or other subdivision thereof to the extent relating
to any item or type of Senior Note Collateral, corporate or other business
records to the extent relating to any item or type of Senior Note Collateral and
all reserves, deferred payments, and claims of every kind or character to the
extent relating thereto (collectively, the "Contract Rights");

         (g)      Any and all "documents" (as such term is defined in the
Uniform Commercial Code as in effect in any relevant jurisdiction) to the extent
relating to any item or type of Senior Note Collateral, and any and all lists,
books, records, ledgers, printouts, computer programs, computer disks or tape
files, computer runs and other computer prepared information, files (whether in
printed form or stored electronically), tapes or other papers or materials to
the extent containing information relating to any item or type of Senior Note
Collateral;

         (h)      The "Collateral Account" established and maintained pursuant
to the Indenture and all funds from time to time on deposit therein, all
investments of such funds and all certificates and instruments from time to time
representing or evidencing such investments, all notes, certificates of deposit,
checks and other instruments from time to time hereafter delivered to or
otherwise possessed by the Senior Note Trustee for or on behalf of Borrower in
substitution for any or all of the Senior Note Collateral, and all interest,
dividends, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of the items constituting Senior Note Collateral;

         (i)      All surveys, drawings, plans, specifications, construction
contracts, file materials, operating and maintenance records, catalogues, tenant
lists, correspondence, advertising materials, operating manuals, warranties,
guaranties, appraisals, studies and data to the extent relating to any item or
type of Senior Note Collateral or the construction of any alteration or the
maintenance of any permit;

         (j)      All of Borrower's present and after acquired right, title and
interest in any and all of the following (collectively, the "Intellectual
Property"):

<PAGE>   15

                  (i)      any and all copyrights, whether statutory or common
         law, and all applications, registrations and recording relating to such
         copyrights in the United States Copyright Office or in any other
         country, together with any and all (A) rights and privileges arising
         under applicable law with respect to Borrower's use of any copyrights,
         (B) reissues, extensions, continuations and renewals thereof, (C)
         damages and payments now and hereafter due and/or payable for past or
         future infringements thereof, (D) rights corresponding thereto
         throughout the world and (E) rights to sue for past, present and future
         infringements thereof (collectively, the "Copyrights");

                  (ii)     any and all patents and all applications,
         registrations and recordings relating thereto as may at any time be
         filed in the United States Patent and Trademark Office or in any other
         country, together with any and all (A) rights and privileges arising
         under applicable law with respect to borrower's use of any patents, (B)
         inventions and improvements described and claimed therein, (C)
         reissues, divisions, continuations, renewals, extensions and
         continuations-in-part thereof, (D) damages and payments now and
         hereafter due and/or payable for past or future infringements thereof,
         (E) rights corresponding thereto throughout the world, and (F) rights
         to sue for past, present and future infringements thereof
         (collectively, the "Patents"),

                  (iii)    any and all trademarks (including service marks),
         trademark registrations, trade styles and trade names and applications
         therefor as may at any time be filed in the United States Patent and
         Trademark Office or any other country, together with any and all (A)
         rights and privileges arising under applicable law with respect to
         Borrower's use of any trademarks, (B) reissues, continuations,
         extensions and renewals thereof, (C) damages and payments now and
         hereafter due and/or payable for past or future infringements thereof,
         (D) all rights corresponding thereto throughout the world and (E)
         rights to sue for past, present and future infringements thereof
         (collectively, the "Trademarks"); and

                  (iv)     any and all license and distribution agreements with
         any other party with respect to a Patent, Trademark or Copyright,
         whether Borrower is a Licensor or licensee, distributor or distributee
         under any such license or distribution agreement, along with any and
         all (A) renewals, extensions, supplements and continuations thereof (B)
         damages and payments now and hereafter due and or payable to Borrower
         for past or future infringements thereof and (C) rights to sue for
         past, present and future infringements thereof (collectively, the
         "Licenses");

              (k) (i)      All issued and outstanding shares of capital
stock of each entity which is or becomes, as a result of any occurrence, a
Restricted Subsidiary (as defined in the Indenture) of Borrower, including the
certificates, if any, representing the shares and any interest of Borrower in
the entries on the books of any financial intermediary pertaining thereto
(collectively, the "Pledged Shares"), (ii) all additional shares, participations
or other equivalents of or interests in (however designated) the equity
including, without limitation, common stock, preferred stock and partnership,
membership or other interests) (collectively the "Capital Stock") of any issuer
of the Pledged Shares from time to time acquired by Borrower in any manner
including the certificates, if any, representing such additional shares and any
interest of Borrower in the entries on the books if any financial intermediary
pertaining to such additional shares (collectively, the "Additional Shares") and
(iii) all dividends, cash, options, warrants, rights, instruments,
distributions, partnership distributions, returns of capital, income, profits
and other property, interests or proceeds from time to time received, receivable
or otherwise distributed to Borrower in respect of or in exchange for any or all
of the Pledged Shares or Additional Shares (collectively, the "Distributions");

<PAGE>   16

         (l)      All the estate, right, title, interest, claim and demand
whatsoever, of Borrower, in law, equity, on otherwise howsoever, of, in, and to
the same and every part of the foregoing; and

         (m)      All proceeds of the conversion, voluntary or involuntary, of
any of the foregoing into cash or liquidated claims, including, without
limitation, proceeds of insurance (and any unearned premiums thereon),
indemnity, warranty, guarantee or claims payable to the Senior Note Trustee or
Borrower from time to time with respect to any item or type of Senior Note
Collateral, payments (in any form whatsoever) made or due and payable to
Borrower from time to time in connection with any requisition, confiscation,
condemnation, eminent domain, seizure or forfeiture of all or any part of the
Senior Note Collateral by any governmental authority (or any person acting under
color of a governmental authority), judgment or other awards or payments with
respect thereto or settlement in lieu thereof, including, without limitation,
interest thereon, products of the Senior Noteholder Collateral, and other
amounts from time to time paid or payable under or in connection with any of the
Senior Noteholder Collateral (collectively, "Proceeds");

provided, however, that Senior Note Collateral shall in no event include (i) any
of the Lender Collateral, (ii) the real property, buildings, improvements and
fixtures owned by the Company and located at its plant in Knox County,
Tennessee, (iii) the real property, building, improvements, fixtures and
equipment owned by the Company and located at its plant in Taylor County,
Florida, or (iv) certain funds held in escrow for the benefit of the holders of
the Industrial Revenue Bonds (as defined in the Indenture).<PAGE>   1
                                                                     Exhibit 4.1

             ARTICLES OF AMENDMENT PURSUANT TO SECTION 607.0602 OF
                      THE FLORIDA BUSINESS CORPORATION ACT

                AMENDED AND RESTATED CERTIFICATE OF DESIGNATION,
                      PREFERENCES, RIGHTS AND LIMITATIONS

                                       OF

              SERIES A1 CONVERTIBLE PREFERRED STOCK, $.01 PAR VALUE

                                       OF

                                 MAREX.COM, INC.

MAREX.COM, INC., F/K/A AFFILIATED NETWORKS, INC., hereafter called the
"Company," a corporation organized and existing under the Florida Business
Corporation Act, does hereby certify that, pursuant to the authority conferred
upon the Board of Directors of the Company (the "Board of Directors") by the
Amended and Restated Articles of Incorporation of the Company (the "Articles of
Incorporation"), and pursuant to the provisions of ss.607.0602 of the Florida
Business Corporation Act, said Board of Directors, by actions duly taken on
February 25, 2000, adopted resolutions designating, creating, authorizing and
providing for the issuance of a series of preferred stock, par value $0.01 per
share, to be designated as Series A1 Convertible Preferred Stock, and, by
actions duly taken on March 2, 2000, increased the number of authorized shares
of the Series A1 Convertible Preferred Stock to 430,000. These actions did not
require a shareholder action and were authorized by all necessary actions of the
Board of Directors. This Amended and Restated Certificate of Designation is
intended to supersede the original Certificate of Designation for the Series A1
Convertible Preferred Stock. The Series A1 Convertible Preferred Stock has the
following designation, preferences, rights and limitations:

<PAGE>   2

               AMENDED AND RESTATED CERTIFICATE OF DESIGNATION OF
                      SERIES A1 CONVERTIBLE PREFERRED STOCK
                               OF MAREX.COM, INC.

         1. DESIGNATION, AMOUNT, PAR VALUE, STATED VALUE, RANK AND CERTAIN
DEFINED TERMS.

            a. The preferred stock authorized under this Certificate of
Designation shall be designated as the Series A1 Convertible Preferred Stock
(the "SERIES A1 PREFERRED STOCK"), and the number of shares so designated shall
be 430,000, subject to adjustment for any stock splits, stock dividends or
similar transactions affecting the Series A1 Preferred Stock. Each share of
Series A1 Preferred Stock, par value .01 per share, shall have a stated value of
$100.00 per share (the "STATED VALUE").

            b. The Series A1 Preferred Stock shall rank senior to all classes of
Common Stock and senior to or PARI PASSU with each other series of preferred
stock or class of other capital stock or instruments of the Company convertible
into Common Stock of the Company with respect to dividend distributions,
redemptions and distributions upon Liquidation.

            c. Certain terms used herein are defined in Section 10 hereof.

         2. DIVIDENDS. The Holders of the Series A1 Preferred Stock shall be
entitled to receive dividends, whether in cash, property or otherwise (other
than dividends payable solely in shares of Common Stock), out of any assets
legally available therefor, ratably with any declaration or payment of any
dividend to any Junior Securities of the Company, when, as and if declared by
the Board of Directors, in an amount per share equal to that which the Holders
would have been entitled had they converted such shares of Series A1 Preferred
Stock into Common Stock immediately prior to the payment of such dividends. No
rights to any dividends shall otherwise accrue to the Holders of the Series A1
Preferred Stock unless declared by the Board of Directors.

         3. LIQUIDATION.

            a. Upon any Liquidation, the Holders of record of the Series A1
Preferred Stock shall be entitled to receive, out of the assets of the Company
and before any distribution or payment is made upon any Junior Securities, for
each share of Series A1 Preferred Stock, an amount per share equal to the lesser
of (i) the Stated Value or (ii) the assets of the Company available for
distribution to its stockholders, distributed ratably among the Holders of the
outstanding Series A1 Preferred Stock (determined on an "as converted" basis)
and the holders of all of the outstanding capital stock of the Company.

            b. The Company shall mail written notice of any such Liquidation,
not less than 45 days prior to the payment date stated therein, to each Holder.

                                       2
<PAGE>   3

         4. VOTING RIGHTS.

            a. GENERAL VOTING RIGHTS. Each Holder shall have the right to one
vote for each share of Common Stock into which the shares Series A1 Preferred
Stock owned by such Holder could then be converted, and with respect to such
vote, such Holder shall have full voting rights and powers equal to the voting
rights and powers of the holders of Common Stock, and shall be entitled to
notice of any stockholders' meeting in accordance with the charter documents of
the Company, and shall be entitled to vote, together with the holders of Common
Stock, with respect to any question upon which holders of Common Stock have the
right to vote. Fractional votes shall not, however, be permitted and any
fractional voting rights available on an as-converted basis (after aggregating
all shares into which shares of Series A1 Preferred Stock held by each Holder
could be converted) shall be rounded to the nearest whole number.

            b. CERTAIN LIMITATIONS. As long as any shares of Series A1 Preferred
Stock are outstanding, the Company shall not, and shall cause its subsidiaries
not to, without the affirmative vote or consent of the Holders of 90% of the
shares of the Series A1 Preferred Stock then outstanding (or, with respect to
clause (iv) only, 75% of the shares of the Series A1 Preferred Stock then
outstanding) (with shares held by the Company or any of its Affiliates not being
considered to be outstanding for this purpose) voting or consenting, as the case
may be, as one class:

                  (i) amend or otherwise alter this Certificate of Designation
         in any manner that adversely affects the absolute or relative rights,
         powers, preferences, privileges or voting rights given to the Series A1
         Preferred Stock;

                  (ii) amend or otherwise alter the Articles of Incorporation,
         bylaws or other charter documents of the Company so as to affect
         adversely the absolute or relative powers, preferences or rights of the
         Series A1 Preferred Stock;

                  (iii) increase or decrease (other than by redemption or
         conversion) the total number of authorized shares of Series A1
         Preferred Stock;

                  (iv) sell all or substantially all of its assets;

                  (v) avoid or seek to avoid the observance or performance of
         any of the terms to be observed or performed by the Company under this
         Certificate of Designation; or

                  (vi) enter into any agreement with respect to the foregoing.

         5. CONVERSION.

            a. OPTIONAL CONVERSION. Each share of Series A1 Preferred Stock
shall be convertible, at the option of the Holder thereof, at any time after
Original Issue Date, into that number of fully paid and non-assessable shares of
Common Stock as is determined by the quotient of (i) the Stated Value over (ii)
the per share Conversion Price in effect at the time of conversion, determined
as hereinafter provided. The initial per share Conversion Price shall be $13.00,
subject to adjustment from time to time as provided herein (the "CONVERSION
PRICE").

                                       3
<PAGE>   4

            b. AUTOMATIC CONVERSION.

                  (i) Upon the completion of a QPO, all shares of Series A1
         Preferred Stock then outstanding shall, by virtue of and simultaneously
         with such QPO and without any action on the part of the Holders or the
         Company, be automatically converted into that number of fully paid and
         non-assessable shares of Common Stock into which such shares of Series
         A1 Preferred Stock would have been convertible in the event of an
         optional conversion at such time pursuant to Section 5(a) hereof.

                  (ii) Following the one-year anniversary of the date that
         Securities and Exchange Commission declares effective the Initial
         Registration Statement (as defined in the Registration Rights
         Agreement), if the Per Share Market Value exceeds 200% of the then
         effective Conversion Price for a period of twenty (20) consecutive
         Trading Days (the "TRIGGERING EVENT") all shares of Series A1 Preferred
         Stock then outstanding shall, by virtue of and simultaneously with such
         Triggering Event and without any action on the part of the Holders or
         the Company, be automatically converted into that number of fully paid
         and non-assessable shares of Common Stock into which such shares of
         Series A1 Preferred Stock would have been convertible in the event of
         an optional conversion at such time pursuant to Section 5(a) hereof;
         PROVIDED, HOWEVER, that such Triggering Event shall not trigger the
         automatic conversion of the Series A1 Preferred Stock into Common Stock
         unless (i) (a) any Registration Statement required to be filed and be
         effective pursuant to the Registration Rights Agreement is then in
         effect and has been in effect and sales of all of the Underlying Shares
         can be made thereunder for at least five (5) Business Days prior to the
         Triggering Event or (b) the Underlying Shares are able to be sold
         without registration pursuant to Rule 144(k) promulgated under the
         Exchange Act, (ii) the Company has a sufficient number of authorized
         shares of Common Stock reserved for issuance upon full conversion of
         the Series A1 Preferred Stock at the then applicable Conversion Price
         and (iii) the Company is not then in breach of Section 5(c) hereof.

            c. MECHANICS OF CONVERSION. A Holder shall effect conversions by
surrendering to the Company, or to the Company's transfer agent, the certificate
or certificates representing the shares of Series A1 Preferred Stock to be
converted, together with a copy of the form of conversion notice attached hereto
as EXHIBIT A (the "CONVERSION NOTICE"). Each Conversion Notice shall specify the
Holder, the name or names in which the certificate or certificates for shares of
Common Stock are to be issued, the number of shares of Series A1 Preferred Stock
to be converted and the date on which such conversion is to be effected, which
date may not be prior to the date the Holder delivers such Conversion Notice by
facsimile (the "CONVERSION DATE"). If no Conversion Date is specified in a
Conversion Notice, the Conversion Date shall be the date that the Conversion
Notice is deemed delivered pursuant to Section 11. The Company shall, within
three (3) Trading Days after the receipt of the Conversion Notice, cause to be
delivered to the Holder, or to such Holder's nominee or nominees, (i) a
certificate or certificates which shall be free of restrictive legends and
trading restrictions (other than those required pursuant to the Purchase
Agreement or otherwise required by law) representing the number of shares of
Common Stock being acquired upon the conversion of shares of Series A1 Preferred
Stock and (ii) if the Holder is converting less than all the shares of Series A1
Preferred Stock represented by the certificate or certificates tendered by the
Holder with the

                                       4
<PAGE>   5

Conversion Notice, one or more certificates representing the number of shares of
Series A1 Preferred Stock not converted. The Person or Persons entitled to
receive the shares of Common Stock issuable upon such conversion shall be
treated for all purposes as the record holder or holders of such shares of
Common Stock as of the Conversion Date. Upon request of the Holder, and in
compliance with the provisions hereof, in lieu of physical delivery of the
shares of Common Stock, provided the Company's transfer agent is participating
in the Depositary Trust Company ("DTC") Fast Automated Securities Transfer
(FAST) program, the Company shall use its best efforts to cause its transfer
agent to electronically transmit any certificate or certificates required to be
delivered to the Holder (or the Holder's nominee) under this Section 5 by
crediting the account of the Holder's (or the Holder's nominee's) Prime Broker
with DTC through its Deposit Withdrawal Agent Commission system. The time period
for delivery described herein shall apply to any such electronic transmittals.
If in the case of any Conversion Notice such certificate or certificates are not
delivered to or as directed by the applicable Holder by the tenth (10th) Trading
Day after the Conversion Date, the Holder shall be entitled at any time on or
before its receipt of such certificate or certificates thereafter to rescind
such conversion by written notice to the Company, in which event the Company
shall immediately return the certificates representing the shares of Series A1
Preferred Stock for which Common Stock was not delivered pursuant to such
conversion.

            d. FAILURE TO CONVERT. If the Company fails to deliver to the Holder
(or to the Holder's nominee) such certificate or certificates pursuant to this
Section 5 on or prior to the seventh (7th) Trading Day after the Conversion Date
(the "DELIVERY DATE"), in addition to all other remedies that such Holder may
pursue hereunder or under the Purchase Agreement, the Company shall pay to such
Holder upon demand an amount in cash equal to the product of (a) the number of
shares of Common Stock required to be issued upon conversion of such shares of
Series A1 Preferred Stock, (b) the Per Share Market Value on the Conversion
Date, (c) the number of days after the three (3) Trading Day period referred to
in Section 5(c) that the Company fails to deliver such certificates and (d)
 .005. For the avoidance of doubt, no Holder shall be entitled to any such
payment if the Company delivers to such Holder a certificate or certificates
representing the total number of shares of Common Stock being acquired upon
conversion of such shares of Series A1 Preferred Stock prior to the Delivery
Date.

         6. RESERVATION OF SHARES. The Company covenants that it will at all
times reserve and keep available out of its authorized and unissued Common
Stock, solely for the purpose of issuance upon conversion of the Series A1
Preferred Stock and free from preemptive rights or any other actual contingent
purchase rights of Persons other than the Holders of Series A1 Preferred Stock,
not less than 100% of such number of shares of Common Stock as shall (subject to
any additional requirements of the Company as to reservation of such shares set
forth in the Purchase Agreement) be issuable (taking into account the
adjustments of Section 7 hereof) upon the conversion of all outstanding shares
of Series A1 Preferred Stock (without regard to any limitations on conversion).
The Company shall, from time to time in accordance with Florida law, take all
steps necessary to increase the authorized amount of its Common Stock if at any
time the authorized number of shares of Common Stock remaining unissued shall
not be sufficient to permit the conversion of all of the shares of the Series A1
Preferred Stock. The Company covenants that all shares of Common Stock that
shall be so issuable shall, upon issue, be duly authorized, validly issued and
fully paid, nonassessable and, subsequent to the effectiveness of the Initial
Registration Statement (as defined in the Registration Rights

                                       5
<PAGE>   6

Agreement) and other than any restrictions that may be imposed thereon by the
Holder thereof, freely tradable.

         7. ADJUSTMENT OF CONVERSION PRICE.

            a. COMMON STOCK DIVIDENDS; COMMON STOCK SPLITS; RECLASSIFICATION. If
the Company, at any time after the Original Issue Date (i) shall pay or make a
stock dividend on its Common Stock in shares of Common Stock, (ii) subdivide
outstanding shares of Common Stock into a larger number of shares or (iii) issue
by reclassification of shares of Common Stock any shares of Common Stock of the
Company, then the Conversion Price shall be multiplied by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding
before such event and the denominator of which shall be the number of shares of
Common Stock outstanding after such event. Any adjustment made pursuant to this
Section 7(a) shall become effective immediately after the record date for the
determination of shareholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a
subdivision or re-classification.

            b. RIGHTS; WARRANTS. If the Company, at any time after the Original
Issue Date, shall fix a record date for the issuance of rights, options,
warrants or other securities to the holders of its Common Stock entitling them
to subscribe for or purchase, exchange for, convert into or otherwise acquire
shares of Common Stock, or any stock or other securities convertible into or
exchangeable for Common Stock, for no consideration or for a price per share
less than the Conversion Price, then the Conversion Price shall be multiplied by
a fraction, the numerator of which shall be the number of shares of Common Stock
outstanding immediately prior to such issuance or sale plus the number of shares
of Common Stock which the aggregate consideration received by the Company would
purchase at the Conversion Price, and the denominator of which shall be the
number of shares of Common Stock outstanding immediately prior to such issuance
or sale plus the number of additional shares of Common Stock offered for
subscription, purchase, conversion, exchange or acquisition, as the case may be.
Such adjustment shall be made whenever such rights, options, warrants or other
securities are issued, and shall become effective immediately after the record
date for the determination of shareholders entitled to receive such rights,
options, warrants or other securities.

            c. SUBSCRIPTION RIGHTS. If the Company, at any time after the
Original Issue Date, shall fix a record date for the distribution to holders of
Common Stock evidence of its indebtedness or assets or rights, options, warrants
or other securities entitling them to subscribe for or purchase, convert into,
exchange for or otherwise acquire any security (excluding those referred to in
Sections 7(a) and (b) hereof), then in each such case the Conversion Price at
which the Series A1 Preferred Stock shall thereafter be convertible shall be
determined by multiplying the Conversion Price in effect immediately prior to
such record date by a fraction, the numerator of which shall be the Conversion
Price on such record date less the then fair market value at such record date of
the portion of such assets or evidence of indebtedness so distributed applicable
to one outstanding share of Common Stock as determined by the Board of Directors
in good faith, and the denominator of which shall be the Conversion Price as of
such record date; PROVIDED, HOWEVER, that in the event of a distribution
exceeding ten percent (10%) of the net assets of the

                                       6
<PAGE>   7

Company, such fair market value shall be determined by an Appraiser selected in
good faith by the Holders of the Series A1 Preferred Stock; and PROVIDED,
FURTHER, that the Company, after receipt of the determination by such Appraiser,
shall have the right to select in good faith an additional Appraiser meeting the
same qualifications, in which case the fair market value shall be equal to the
average of the determinations by each such Appraiser. Such adjustment shall be
made whenever any such distribution is made and shall become effective
immediately after the record date mentioned above.

            d. RECORD DATE. If the Company takes a record of the holders of
Common Stock for the purpose of entitling them (i) to receive a dividend or
other distribution payable in Common Stock, rights, options, warrants or other
securities or (ii) to subscribe for or purchase Common Stock, rights, options,
warrants or other securities, then, for the purposes of this Section 7, such
record date will be deemed to be the date of the issue or sale of the shares of
Common Stock deemed to have been issued or sold upon the declaration of such
dividend or the making of such other distribution or the date of the granting of
such right of subscription or purchase, as the case may be.

            e. NOTICE OF ADJUSTMENT. Whenever the Conversion Price is adjusted
pursuant to this Section 7 the Company shall promptly deliver to the Holders a
notice setting forth the Conversion Price after such adjustment and setting
forth a brief statement of the facts requiring such adjustment. Such notice
shall be signed by the chairman, president or chief financial officer of the
Company.

            f. ADJUSTMENT FOR RECLASSIFICATION, EXCHANGE AND SUBSTITUTION. If at
any time after the Original Issue Date the Common Stock issuable upon the
conversion of the Series A1 Preferred Stock is changed into the same or a
different number of shares of any class or classes of stock, whether by
recapitalization, reclassification or otherwise (other than a subdivision of its
Common Stock or dividend on it shares of Common Stock paid in shares of Common
Stock, and other than a reorganization, merger or consolidation provided for
elsewhere in this Section 7), in any such event each Holder of Series A1
Preferred Stock shall have the right thereafter to convert such stock into the
kind and amount of stock and other securities and property receivable in
connection with such recapitalization, reclassification or other change with
respect to the maximum number of shares of Common Stock into which such shares
of Series A1 Preferred Stock could have been converted immediately prior to such
recapitalization, reclassification or change, all subject to further adjustments
as provided herein or with respect to such other securities or property by the
terms thereof.

            g. REORGANIZATIONS, MERGERS OR CONSOLIDATIONS. If at any time after
the Original Issue Date the Common Stock is converted into other securities or
property, whether pursuant to a reorganization, merger, consolidation or
otherwise (other than a recapitalization, subdivision, reclassification,
exchange or substitution of shares provided for elsewhere in this Section 7), as
a part of such transaction, provision shall be made so that the Holders of the
Series A1 Preferred Stock shall thereafter be entitled to receive upon
conversion thereof the number of shares of stock or other securities or property
to which a holder of the maximum number of shares of Common Stock deliverable
upon conversion would have been entitled in connection with such

                                       7
<PAGE>   8

transaction, subject to adjustment in respect of such stock or securities by the
terms thereof. In any such case, appropriate adjustment shall be made in the
application of the provisions of this Section 7 with respect to the rights of
the Holders Series A1 Preferred Stock after such transaction to the end that the
provisions of this Section 7 (including adjustment of the Series A1 Conversion
Price then in effect and the number of shares issuable upon conversion of the
Series A1 Preferred Stock) shall be applicable after that event and be as nearly
equivalent as practicable. The Company shall not be a party to any
reorganization, merger or consolidation in which the Company is not the
surviving entity unless the entity surviving such transaction assumes all of the
Company's obligations hereunder.

            h. ISSUANCES BELOW CONVERSION PRICE. If the Company, at any time
when any shares of Series A1 Preferred Stock are outstanding, takes any of the
actions described in this Section 7(h), the majority of the Holders shall have
the right to amend this Certificate of Designation as set forth below:

                  (i) issues or sells, or is deemed to have issued or sold, any
         Common Stock (other than Excluded Securities);

                  (ii) in any manner grants, issues or sells any rights,
         options, warrants, options to subscribe for or to purchase Common Stock
         or any stock or other securities convertible into or exchangeable for
         Common Stock (other than any Excluded Securities) (such rights, options
         or warrants being herein called "OPTIONS" and such convertible or
         exchangeable stock or securities being herein called "CONVERTIBLE
         SECURITIES"); or

                  (iii) in any manner issues or sells any Convertible
         Securities;

for (a) with respect to paragraph (h)(i), above, a price per share, or (b) with
respect to paragraphs h(ii) or h(iii), above, a price per share for which Common
Stock issuable upon the exercise of such Options or upon conversion or exchange
of such Convertible Securities is, less than the Conversion Price in effect
immediately prior to such issuance or sale, then, immediately after such
issuance, sale or grant, the majority of the Holders shall have the right to
amend the issuance terms of the Common Stock issuable upon conversion of the
shares of Series A1 Preferred Stock (including adjustment of the Conversion
Price) so that the issuance terms hereof are equivalent to the issuance terms of
such offering. No modification of the issuance terms shall be made upon the
actual issuance of such Common Stock upon conversion or exchange of such Options
or Convertible Securities. If there is a change at any time in (i) the exercise
price provided for in any Options, (ii) the additional consideration, if any,
payable upon the issuance, conversion or exchange of any Convertible Securities
or (iii) the rate at which any Convertible Securities are convertible into or
exchangeable for Common Stock, then immediately after such change the Holders
shall have the right to amend the issuance terms of such Common Stock issuable
upon conversion of the shares of Series A1 Preferred Stock accordingly,
including, without limitation, by reducing the Conversion Price in effect to the
Conversion Price which would have been in effect at such time had such Options
or Convertible Securities still outstanding provided for such changed exercise
price, additional consideration or changed conversion rate, as the case may be,
at the time initially granted, issued or sold; provided that no

                                       8
<PAGE>   9

adjustment shall be made if such adjustment would result in an increase of the
Conversion Price then in effect.

            i. EFFECT ON CONVERSION PRICE OF CERTAIN EVENTS. For purposes of
determining the adjusted Conversion Price under Section 7(h), the following
shall be applicable:

                  (i) CALCULATION OF CONSIDERATION RECEIVED. If any Common
         Stock, Options or Convertible Securities are issued or sold or deemed
         to have been issued or sold for cash, the consideration received
         therefor will be deemed to be the net amount received by the Company
         therefor, without deducting any expenses paid or incurred by the
         Company or any commissions or compensations paid or concessions or
         discounts allowed to underwriters, dealers or others performing similar
         services in connection with such issue or sale. In case any Common
         Stock, Options or Convertible Securities are issued or sold for a
         consideration other than cash, the amount of the consideration other
         than cash received by the Company will be the fair value of such
         consideration, except where such consideration consists of securities
         listed or quoted on a National Market, in which case the amount of
         consideration received by the Company will be the arithmetic average of
         the closing sale price of such security for the five (5) consecutive
         Trading Days immediately preceding the date of receipt thereof. In case
         any Common Stock, Options or Convertible Securities are issued to the
         owners of the non-surviving entity in connection with any merger in
         which the Company is the surviving entity, the amount of consideration
         therefor will be deemed to be the fair value of such portion of the net
         assets and business of the non-surviving entity as is attributable to
         such Common Stock, Options or Convertible Securities, as the case may
         be. The fair value of any consideration other than cash or securities
         listed or quoted on a National Market will be determined jointly by the
         Company and the Holders of a majority of the shares of Series A1
         Preferred Stock then outstanding. If such parties are unable to reach
         agreement within ten (10) days after the occurrence of an event
         requiring valuation (the "VALUATION EVENT"), the fair value of such
         consideration will be determined within forty-eight (48) hours of the
         tenth (10th) day following the Valuation Event by an Appraiser selected
         in good faith by the Company, and agreed upon in good faith by the
         Holders of a majority of the shares of Series A1 Preferred Stock then
         outstanding. The determination of such Appraiser shall be binding upon
         all parties absent manifest error.

                  (ii) INTEGRATED TRANSACTIONS. In case any Option is issued in
         connection with the issue or sale of other securities of the Company,
         together comprising one integrated transaction in which no specific
         consideration is allocated to such Options by the parties thereto the
         aggregate consideration of the Options shall be determined by an
         Appraiser selected mutually, in good faith, by the Holders of a
         majority in interest of the shares of the Series A1 Preferred Stock and
         the Company.

            j. NOTICE OF CERTAIN EVENTS. If:

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

                                       9
<PAGE>   10

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

                  (iii) the Company shall authorize the granting to the holders
         of its Common Stock rights, options or warrants to subscribe for or
         purchase any shares of capital stock of any class or of any rights;

                  (iv) the approval of any shareholders of the Company shall be
         required in connection with any reclassification of the Common Stock or
         any Change of Control Transaction; or

                  (v) the Company shall authorize the Liquidation of the affairs
         of the Company;

then the Company shall cause to be delivered to the Holders at the address
specified herein, at least 15 (fifteen) calendar days prior to the applicable
record or effective date hereinafter specified, a notice (provided such notice
shall not include any material non-public information) stating (a) the date on
which a record is to be taken for the purpose of such dividend, distribution,
redemption, or granting of options, rights or warrants, or if a record is not to
be taken, the date as of which the holders of Common Stock of record to be
entitled to such dividend, distributions, redemption, rights, options or
warrants are to be determined or (b) the date on which such reclassification,
Liquidation or Change of Control Transaction is expected to become effective or
close, and the date as of which it is expected that holders of record of Common
Stock shall be entitled to exchange their shares of Common Stock for securities,
cash or other property deliverable in connection with such reclassification or
Change of Control Transaction. Nothing herein shall prohibit the Holders from
converting shares of Series A1 Preferred Stock held by such Holder during the
15-day period commencing on the date of such notice to the effective date of the
event triggering such notice.

            k. ADJUSTMENT IN THE NUMBER OF SHARES. For the avoidance of doubt,
upon each adjustment in the Conversion Price pursuant to any provision of this
Section 7 the number of shares of Common Stock purchasable hereunder shall be
adjusted, to the nearest 1/100th of a whole share, to the product obtained by
multiplying such number of shares purchasable immediately prior to such
adjustment in the Conversion Price by a fraction, the numerator of which shall
be the Conversion Price immediately prior to such adjustment and the denominator
of which shall be the Conversion Price immediately thereafter.

            l. ROUNDING. All calculations under this Section 7 shall be made to
the nearest cent or the nearest l/l00th of a share, as the case may be.

            m. INCREASE OF CONVERSION PRICE. In the event that (i) each of the
conditions set forth in Section 4.2(b) of the Purchase Agreement have been
satisfied or waived by the Holders, (ii) the documents and certificates set
forth in Section 4.2(c) of the Purchase Agreement have been delivered or the
delivery thereof has been waived by the Holders and (iii) the Holders fail to
consummate the Second Closing (as defined in the Purchase Agreement), then the
Conversion Price shall be increased to $16.00 per share (subject to stock
splits, reclassifications and other similar transactions).

                                       10
<PAGE>   11

            n. OTHER EVENTS. If the Company grants any stock appreciation
rights, phantom stock rights or other rights with equity features (excluding the
issuance of any Excluded Securities) that adversely affects the rights of any
holder of the Series A1 Preferred Stock occurs but is not expressly provided for
by Section 7 hereof then the Company's Board of Directors will make an
appropriate adjustment in the Conversion Price so as to protect the rights of
the Holders or assigns; PROVIDED, HOWEVER, that no such adjustment will increase
the Conversion Price. In no event, other than as set forth in Section 7(m)
hereof, shall the Conversion Price be greater than the Conversion Price on the
Original Issue Date.

            o. TREASURY SHARES. The number of shares of Common Stock outstanding
at any given time shall not include shares owned or held by or for the account
of the Company, if any, and the disposition of any shares so owned or held shall
be considered an issue or sale of Common Stock by the Company.

         8. RESTRICTION ON CONVERSION BY EITHER THE HOLDER OR THE COMPANY.
Notwithstanding anything herein to the contrary, and except as provided in
Sections 5(b) and 9(b) hereof, in no event shall any Holder or the Company have
the right or be required to convert shares of Series A1 Preferred Stock if as a
result of such conversion the aggregate number of shares of Common Stock
beneficially owned by such Holder and its Affiliates would exceed 4.99% of the
outstanding shares of the Common Stock following such conversion. For purposes
of this Section 8, beneficial ownership shall be calculated in accordance with
Section 13(d) of the Exchange Act. The provisions of this Section 8 may be
waived by a Holder as to itself (and solely as to itself) upon not less than
sixty-five (65) days prior written notice to the Company, and the provisions of
this Section 8 shall continue to apply until such 65th day (or later, if stated
in the notice of waiver).

         9. REDEMPTION. MANDATORY REDEMPTION. In case of (a) the Company's
notice to any Holder of the Series A1 Preferred Stock, including by way of
public announcement, at any time, of its intention, for any reason, not to
comply with proper requests for the conversion of any shares of Series A1
Preferred Stock into shares of Common Stock or (b) the Company's refusal to
honor a duly executed Conversion Notice delivered pursuant to Section 5 hereof
(each, a "REDEMPTION EVENT") each Holder shall have the option to require the
Company to redeem, from funds legally available therefor at the time of such
redemption, its shares of Common Stock immediately theretofore acquirable and
receivable upon the conversion of such Holder's Series A1 Preferred Stock at a
price (the "REDEMPTION PRICE") equal to, at the option of such Holder, (i) the
product of (A) the Per Share Market Value on the date the Redemption Event or,
at the option of the Holder, on the date immediately preceding the date of
payment in full by the Company of the Redemption Price (the "DETERMINATION
DATE"), and (B) the number of shares of Common Stock into which the Series A1
Preferred Stock is convertible as of such Determination Date or (ii) the product
of (A) the Stated Value and (B) the number of shares Preferred Stock then held
by such Holder. The Company shall pay the applicable Redemption Price to the
Holder of the shares of Series A1 Preferred Stock being redeemed in cash on the
Redemption Date. If the Company shall fail to pay the applicable Redemption
Price to such Holder on the Redemption Date, in addition to any remedy such
Holder may have under this Certificate of Designation and the Purchase
Agreement, such unpaid amount shall bear interest at the rate of 1.0% per month
until paid in full.

                                       11
<PAGE>   12

         10. DEFINITIONS. For the purposes hereof, the following terms shall
have the following meanings:

         "AFFILIATE" means, with respect to any Person, (i) any other Person of
which securities or other ownership interests representing more than fifty
percent (50%) of the voting interests are, at the time such determination is
being made, owned, Controlled or held, directly or indirectly, by such Person,
or (ii) any other Person which, at the time such determination is being made, is
Controlling, Controlled by or under common Control with, such Person. As used
herein, "CONTROL", whether used as a noun or verb, refers to the possession,
directly or indirectly, of the power to direct, or cause the direction of, the
management or policies of a Person, whether through the ownership of voting
securities or otherwise.

         "APPRAISER" means a nationally recognized or major regional investment
banking firm or firm of independent certified public accountants of recognized
standing.

         "APPROVED STOCK PLAN" means any contract, plan or agreement which has
been approved by the Board of Directors of the Company or committee thereof,
pursuant to which the Company's securities may be issued to any employee,
officer or director of the Company; PROVIDED, that such issuance or issuances
shall not exceed the greater of 35% of the Company's outstanding capital stock
on the date thereof or 4,900,000 shares of Common Stock of the Company.

         "CHANGE OF CONTROL TRANSACTION" means the occurrence of any of (i) any
acquisition or series of related acquisitions by any Person or "group" (as
described in Section 13(d)(3) of the Exchange Act) of in excess of 50% of the
voting power of the Company, (ii) the merger or consolidation of the Company
with or into another Person, unless the holders of the Company's securities
immediately prior to such transaction or series of related transactions continue
to hold at least 50% of such securities following such transaction or series of
related transactions, (iii) a sale, conveyance, lease, transfer or disposition
of all or substantially all of the assets of the Company in one or a series of
related transactions or (iv) the execution by the Company of an agreement to
which the Company is a party or by which it is bound, providing for any of the
events set forth above in clauses (i), (ii) or (iv).

         "COMMON STOCK" means the Company's common stock, $.01 par value per
share, and stock of any other class into which such shares may hereafter have
been reclassified or changed.

         "CONVERSION PRICE" has the meaning set forth in Section 5(a).

         "CONVERTIBLE SECURITIES" has the meaning set forth in Section 7(h)(ii).

         "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

         "EXCLUDED SECURITIES" means (i) shares of Common Stock issued or
issuable pursuant to the terms of this Certificate of Designation and the
Purchase Agreement, (ii) shares of Common Stock issued by the Company in
connection with an Approved Stock Plan, (iii) shares of Common Stock (including
options, rights and warrants) issuable upon the exercise of any options, rights
or warrants outstanding as of February 29, 2000 or set forth on Schedule 2.1(c)
of the Purchase Agreement, (iv) shares of Common Stock issued or deemed to be
issued by the

                                       12
<PAGE>   13

Company in connection with a strategic acquisition, joint venture or investment
by the Company of the assets or business, or division thereof, of another Person
or (v) any other issuance of Common Stock, or any securities convertible into or
exchangeable or exercisable for Common Stock, on any day after the Original
Issue Date, in an amount fewer than 500,000 shares of Common Stock in the
aggregate.

         "HOLDER" or "HOLDERS" means the holder or holders of the Series A1
Preferred Stock.

         "JUNIOR SECURITIES" means all classes of Common Stock and each other
class of capital stock or preferred stock of the Company that is not, expressly
by its terms, made senior to or PARI PASSU with the Series A1 Preferred Stock.

         "LIQUIDATION" means any liquidation, dissolution or winding-up of the
Company, whether voluntary or involuntary.

         "NATIONAL MARKET" means the NASDAQ National Market, the NASDAQ SmallCap
Market, the New York Stock Exchange and the American Stock Exchange.

         "OPTIONS" has the meaning set forth in Section 7(h)(ii) hereof.

         "ORIGINAL ISSUE DATE" shall mean the date of the first issuance of any
shares of the Series A1 Preferred Stock, regardless of the number of transfers
of any particular shares of Series A1 Preferred Stock and regardless of the
number of certificates which may be issued to evidence such Series A1 Preferred
Stock, which date shall coincide with the First Closing Date, as defined in the
Purchase Agreement.

         "OTCBB" means the OTC Bulletin Board of the National Association of
Securities Dealers, Inc.

         "PER SHARE MARKET VALUE" means on any particular date (i) the closing
bid price per share of the Common Stock on such date on (a) the OTCBB, as
reported by the National Quotation Bureau Incorporated (or similar organization
or agency succeeding to its function of reporting prices) or (b) on the National
Market on which the Common Stock is then listed or quoted, or, if there is no
such price on such date, then the closing bid price on such exchange or
quotation system on the date nearest preceding such date, or (ii) if the Common
Stock is not then listed or quoted on the OTCBB or any National Market, the fair
market value of a share of Common Stock as determined by an Appraiser selected
in good faith by the Holders of a majority in interest of the shares of the
Series A1 Preferred Stock; PROVIDED, HOWEVER, that the Company, after receipt of
the determination by such Appraiser, shall have the right to select, in good
faith, an additional Appraiser, in which case the fair market value shall be
equal to the average of the determinations by each such 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.

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

                                       13
<PAGE>   14

         "PUBLIC OFFERING" means a public offering of the shares of Common Stock
pursuant to an effective registration statement on Form S-1 or other appropriate
form (or such successor form as then in effect), underwritten by a nationally
recognized investment bank (as determined by the Company in good faith).

         "PURCHASE AGREEMENT" means the Securities Purchase Agreement, dated as
of the Original Issue Date, among the Company and the original Holders of the
Series A1 Preferred Stock.

         "QPO" means a Public Offering by the Company which raises gross
proceeds to the Company of at least $50,000,000, at an effective price per share
to the public of at least $26.00 as adjusted for stock splits, stock dividends
or other similar transactions.

         "REGISTRATION RIGHTS AGREEMENT" means the Registration Rights
Agreement, dated as of the Original Issue Date, by and among the Company and the
original Holders.

         "REGISTRATION STATEMENT" has the meaning set forth in the Registration
Rights Agreement.

         "STATED VALUE" has the meaning set forth in Section 1 hereof.

         "TRADING DAY" means any day on which the OTCBB or any National Market
on which the Common Stock is then listed or quoted is open for trading.

         "UNDERLYING SHARES" means the shares of Common Stock into which the
Series A1 Preferred Stock are convertible in accordance with the terms hereof.

         11. NOTICES. Except as otherwise provided in the event of conversion of
shares of Series A1 Preferred Stock, all notices or other communications
required hereunder shall be in writing and shall be deemed to have been received
(a) upon hand delivery (receipt acknowledged) or delivery by facsimile (with
transmission confirmation report received and with additional mailing by express
courier service made on the same day) at the address or number designated below
(if received by 5:00 p.m. EST where such notice is to be received), or the first
business day following such delivery (if received after 5:00 p.m. EST where such
notice is to be received) or (b) on the second business day following the date
of mailing by express courier service, fully prepaid, addressed to such address,
or upon actual receipt of such mailing, whichever shall first occur; and shall
be regarded as properly addressed if sent to (i) the Company, to Marex.com,
Inc., 2701 S. Bayshore Drive, Fifth Floor, Coconut Grove, Florida, 33133,
facsimile no.: (305) 285-0001, Attention: Chief Financial Officer and (ii) if
the Holders, at their respective addresses set forth in the books and records of
the Company, or such other address as any of the above may have furnished to the
other parties in writing by registered mail, return receipt requested.

         12. LOST OR STOLEN CERTIFICATES. Upon receipt by the Company of
evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of any stock certificates representing the shares of Series A1
Preferred Stock, and, in the case of loss, theft or destruction, of any
indemnification (and, if required by the Company, the posting of a bond)
undertaken by the Holder to the Company in customary form and, in the case of
mutilation, upon

                                       14
<PAGE>   15

surrender and cancellation of such certificates representing the shares of
Series A1 Preferred Stock 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 Series A1 Preferred Stock
into Common Stock.

         13. REMEDIES CHARACTERIZED; 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 A1 Preferred
Stock and that the remedy at law in the event of 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 A1 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.

         14. 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 Purchasers (as defined in
this Purchase Agreement) and shall not be construed against any Person as the
drafter hereof.

         15. FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the part
of a Holder of Series A1 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.

         16. FRACTIONAL SHARES. Upon a conversion hereunder, the Company shall
not be required to issue stock certificates representing fractions of shares of
Common Stock, but may if otherwise permitted, make a cash payment in respect of
any final fraction of a share based on the Per Share Market Value at such time.
If the Company elects not, or is unable, to make such a cash payment, the Holder
of a share of Series A1 Preferred Stock shall be entitled to receive, in lieu of
the final fraction of a share, one whole share of Common Stock.

         17. PAYMENT OF TAX UPON ISSUE OF TRANSFER. The issuance of certificates
for shares of the Common Stock upon conversion of the Series A1 Preferred Stock
shall be made without charge to the Holders thereof for any documentary stamp or
similar taxes that may be payable in respect of the issue or delivery of such
certificate, provided that the Company shall not be required to pay any tax that
may be payable in respect of any transfer involved in the issuance

                                       15
<PAGE>   16

and delivery of any such certificate upon conversion in a name other than that
of the Holders so converted, and the Company shall not be required to issue or
deliver such certificates unless or until the Person or Persons requesting the
issuance thereof shall have paid to the Company the amount of such tax or shall
have established to the satisfaction of the Company that such tax has been paid
or is not payable.

         18. SHARES OWNED BY COMPANY DEEMED NOT OUTSTANDING. In determining
whether the Holders of the outstanding shares of Series A1 Preferred Stock have
concurred in any direction, consent or waiver under this Certificate of
Designation, shares of Series A1 Preferred Stock which are owned by the Company
or any other obligor thereof shall be disregarded and deemed not to be
outstanding for the purpose of any such determination; PROVIDED, that any Series
A1 Preferred Stock owned by the Holders shall be deemed outstanding for purposes
of making such a determination. Shares of the Series A1 Preferred Stock so owned
which have been pledged in good faith may be regarded as outstanding if (i) the
pledgee establishes to the satisfaction of the Holders and the Company the
pledgee's right so to act with respect to such shares and (ii) the pledgee is
not the Company or any other obligor of the Company.

         19. COMMUNICATIONS. The Holders of the Series A1 Preferred Stock shall
be entitled to receive, and the Company shall deliver pursuant to Section 11
hereof, all communications sent by the Company to the holders of the Common
Stock.

         20. REACQUIRED SHARES. Any shares of Series A1 Preferred Stock
redeemed, purchased, converted or otherwise acquired by the Company in any
manner whatsoever shall not be reissued as part of the Company's Series A1
Preferred Stock and shall be retired promptly after the acquisition thereof. All
such shares shall become, upon their retirement (and the filing of any
certificate required in connection therewith pursuant to the Florida Business
Corporation Act), authorized but unissued shares of preferred stock of the
Company.

         21. REGISTRATION OF TRANSFER. The Company shall keep at its principal
office a register for the registration of the transfers of shares of Series A1
Preferred Stock. Upon the surrender of any certificate representing shares of
Series A1 Preferred Stock at such place, the Company shall, at the request of
the record Holder of such certificate, execute and deliver (at the Company's
expense) a new certificate or certificates in exchange therefor representing in
the aggregate the number of shares represented by the surrendered certificate.
Each such new certificate shall be registered in such name and shall represent
such number of shares as is requested by the Holder of the surrendered
certificate and shall be substantially identical in form to the surrendered
certificate.

         22. NO IMPAIRMENT. The Company shall not, by amendment of its Articles
of Incorporation or through any reorganization, recapitalization, transfer of
assets, consolidation, merger, dissolution, issuance or sale of securities or
any other voluntary action, intentionally take any action to 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 of the provisions hereof and in the taking of all
such action as may be necessary or appropriate in order to protect the rights of
the Series A1 Preferred Stock against

                                       16
<PAGE>   17

impairment.

         23. EFFECT OF HEADINGS. The section headings herein are for convenience
only and shall not affect the construction hereof.

                                       ***

(signature on following page)

                                       17
<PAGE>   18

                  IN WITNESS WHEREOF, Marex.com, Inc. has caused this Amended
and Restated Certificate of Designation to be signed by its President on this
16th day of March, 2000.

                                              By: /s/ David A. Schwedel
                                                 -------------------------------
                                                 Name: David A. Schwedel
                                                 Title: President

                                       18
<PAGE>   19

                                    EXHIBIT A

                              NOTICE OF CONVERSION
                            AT THE ELECTION OF HOLDER

(TO BE EXECUTED BY THE REGISTERED HOLDER IN
ORDER TO CONVERT SHARES OF SERIES A1 PREFERRED
STOCK)

         The undersigned hereby elects to convert the number of shares of Series
A1 Convertible Preferred Stock indicated below, into shares of common stock, par
value $.01 per share (the "Common Stock"), of Marex.com, Inc. (the "COMPANY")
according to the conditions hereof, as of the date written below. If shares are
to be issued in the name of a person other than undersigned, the undersigned
will pay all transfer taxes payable with respect thereto and is delivering
herewith such certificates and opinions as reasonably requested by the Company
in accordance therewith. No fee will be charged to the Holder for any
conversion, except for such transfer taxes, if any.

Conversion calculations:

                         --------------------------------------------
                         Date to Effect Conversion

                         --------------------------------------------
                         Number of shares of Series A1 Preferred Stock to
                         be Converted

                         --------------------------------------------
                         Number of shares of Common Stock to be Issued

                         --------------------------------------------
                         Applicable Conversion Price

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

                         --------------------------------------------
                         Name and Address of Person to whom Shares of
                         Common Stock are to be Issued

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

                         --------------------------------------------
                         Name

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}]]