Document:

STANDARD FORM OF
AGREEMENT
BETWEEN OWNER AND ENGINEER
FOR
PROFESSIONAL SERVICES 

This AGREEMENT is made by and Golden
Grain Energy, LLC (GGE) hereinafter called OWNER, and ANTIOCH International, Inc.,
hereinafter called ENGINEER, for professional services not presently specified under any
other agreement between OWNER and ENGINEER.  ENGINEER agrees to provide OWNER with
requested professional services more specifically described as follows: 

 Engineering design
services for a spur track serving the ethanol plant at Mason City, IA. 

The following Attachments are hereby made a part of the AGREEMENT:

	X	Standard Terms and Conditions	 
	X	Attachment A:	ENGINEER's Services	 
	X	Attachment B:	OWNER's Responsibilities	 
	X	Attachment C:	Payments to ENGINEER for Services and Reimbursable
Expenses	 
		Attachment G:	Insurance	

By signing this AGREEMENT, OWNER
acknowledges that it has read and fully understands this AGREEMENT and all attachments
thereto.  OWNER further agrees to pay ENGINEER for services described herein upon receipt
of invoice. 

IN WITNESS WHEREOF, the parties
hereto have made and executed this AGREEMENT. 

	

                                

                                OWNER

 GOLDEN GRAIN ENERGY, LLC 
	

                                                                                                        ENGINEER 

                                   ANTIOCH International, Inc.

	

     	

     
	

BY:            /s/  Walter Wendland           

Authorized Representative	

                            BY:       /s/  William J. Jones 
        

Authorized Representative
	

                                        

     	

     
	

                                        

                                        TITLE:     President

                                        
     	

                                        

                                        TITLE:     President

                                        
     
	

     	

     
	

EFFECTIVE DATE:                Nov. 20, 2002	

                   

                   DATE:      November 14, 2002 
	

     

     	

     
	

ADDRESS: 	

ADDRESS: 
	     951 N. Linn Street	 	     2540 South 221st Circle	 
	     P.O. Box 435	 	     Elkhorn, NE 68022	 
	     New Hampton, IA  50659	 	     Telephone: 402-289-2217	 
	     Telephone: 641-394-4059	 	     ENGINEER's Contact: William J.
Jones	 
	     OWNER's Contact: Stan Laures	 	     Job No.: 98-083	 

PLEASE SIGN AND RETURN ONE ORIGINAL TO ENGINEER

EXHIBIT A –
ENGINEER’s Services 

Section 1 of the Standard Terms and
Conditions is amended and supplemented to include the following agreement of the parties.
ENGINEER shall provide Basic and Additional Services as set forth below. 

PART 1 – BASIC
SERVICES 

Study and Report Phase 

     	1. 	
          Consult with OWNER to define and clarify OWNER’s requirements for the
          Project and available data. 

          

     	2. 	
          Advise OWNER as to the necessity of OWNER’s providing data or services with
          are not part of ENGINEER’s Basic Services, and assist OWNER in obtaining
          such data and services. 

          

     	3. 	
          Identify, consult with, and analyze requirements of governmental authorities
          having jurisdiction to approve the portions of the Project designed or specified
          by ENGINEER. 

          

     	4. 	
          Identify and evaluate up to three alternate solutions available to OWNER and,
          after consultation with OWNER, recommend to OWNER those solutions which in
          ENGINEER’s judgment meet OWNER’s requirements for the Project. 

          

     	5. 	
          Prepare a report (the “Report”) which will, as appropriate, contain
          schematic layouts, sketches and conceptual design criteria with appropriate
          exhibits to indicated the agreed-to requirements, considerations involved, and
          those alternate solutions available to OWNER which ENGINEER recommends. This
          Report will be accompanied by ENGINEER’s opinion of Total Project Costs for
          each solution which is so recommended for the Project with each component
          separately itemized, including the following, which will be separately itemized:
          opinion of probably Construction Cost, allowances for contingencies and for the
          estimated total costs of design, professional, and related services provided by
          ENGINEER and, on the basis of information furnished by OWNER, allowances for
          other items and services included within the definition of Total Project Costs. 

          

     	6. 	
          Perform or provide the following additional Study and Report Phase tasks or
          deliverables: 

          

	  	o  	  	Prepare
and conceptual track plan constructible in stages to accommodate the initial 40 MG plant
design as well as the future layouts for plant expansion to 80 MG.  Plant
production will generate 20 ethanol tank cars and 20 DDG hopper cars of outbound
product each week. 

	  	o  	  	UPRR
will service the plant by UPRR is planned twice each week.  The initial track
construction concept is represented by                   the track layout in Attachment A
for handling 10 ethanol tank cars plus 10 DDG hopper cars. 

	  	o  	  	Current
mainline traffic is 8-10 trains per day. 

	  	o  	  	Coordinate
track design with the mainline railroad and Fagen Engineering, LLC. 

     7.    
          Furnish two review copies of the Report to OWNER within 14 days of authorization
          to proceed with the Study and Report Phase. 

     8.    
     Revise the Report in response to OWNER’s and other parties’ comments,
          as appropriate, and furnish two final copies of the revised Report to the OWNER
          within 7 days after completion of reviewing it with OWNER. 

ENGINEER’s services under the
Study and Report Phase will be considered complete on the date when the final copies of
the revised Report have been delivered to OWNER. 

Preliminary Design Phase
– Grading Work 

After acceptance by OWNER of the
Report, selection by OWNER of a recommended solution and indication of any specific
modifications or changes in the scope, extent, character, or design requirements of the
Project desired by OWNER, and upon written authorization from OWNER, ENGINEER shall: 

     	1. 	
          On the basis of the above acceptance, selection, and authorization, prepare
          Preliminary Design Phase documents consisting of design criteria, preliminary
          drawings, and written descriptions of the Project. 

     	2. 	
          OWNER to provide necessary field surveys, bench marks, topographic and utility
          mapping for the design purposes. Utility mapping will be based upon topographic
          surveys and information obtained from utility owners. OWNER shall accomplish
          field and topographic surveys, and prepare a topographic map of surface features
          and ground contours in the project area. 

     	3. 	
          Advise OWNER of additional reports, data, information, or services of the types
          described in Exhibit B are necessary and assist OWNER in obtaining such reports,
          data, information, or services. 

     	4. 	
          Based on the information contained in the Preliminary Design Phase tasks or
          deliverables: ENGINEER shall refine the conceptual track work plans, and prepare
          plans in sufficient detail to accomplish the grading work, generally described
          as follows: 

          

      PHASE
1 GRADING 

	  	o  	  	Subgrade
geometry & stationing based on the project coordinate system. 

	  	o  	  	Match
line between railroad subgrade and plant subgrade. 

	  	o  	  	Top
of rail profile. 

	  	o  	  	Grading
contour plan. 

	  	o  	  	Grading
sections at 100' intervals. 

	  	o  	  	Special
ditching elevations. 

	  	o  	  	Locations
of service roads. 

	  	o  	  	Typical
grading cross sections 

	  	o  	  	Subgrade
staking report. 

      PHASE 2
GRADING 
	  	o  	  	Culvert
plans showing length, flowline elevations & end treatments. 

	  	o  	  	Yard
track drainage inlets and piping plan. 

	  	o  	  	Erosion
control plan 

	  	o  	  	Subballast
plan 

     	6. 	
          Deliverables: drawings and notes indicating the general character of work to be
          performed; preliminary cost estimate and identification of unresolved final
          design features. ENGINEER shall not be responsible for those portions of the
          Work performed by others. 

     	7. 	
          Furnish two sets of Preliminary Design Phase documents to, and review them with,
          OWNER or OWNER’s Consultant within 30 days after authorization to proceed
          with the Preliminary Design Phase. OWNER’s Consultant to prepare the Phase
          1 and Phase 2 Grading bidding documents and construction specifications. 

     	8. 	
          Revise Preliminary Design Phase documents in response to OWNER’s and other
          parties’ comments, as appropriate, and furnish two final copies of the
          revised Report to the OWNER within 7 days after completion of reviewing it with
          OWNER. 

ENGINEER’s services under the
Preliminary Design Phase will be considered complete on the date when revised copies of
the Preliminary Design Phase documents have been delivered to OWNER. 

Final Design Phase 

After acceptance by OWNER of the
Preliminary Design Phase documents and revised opinion of probable Construction Cost as
determined in the Preliminary Design Phase, but subject to any OWNER-directed
modifications or changes in the scope, extent, character, or design requirements of or for
the Project, and upon written authorization from OWNER, ENGINEER shall: 

     	1. 	
          On the basis of the above acceptance, direction, and authorization, prepare
          final Drawings and Specifications indicating the scope, extent, and character of
          the Work to be performed and furnished by Contractor. 

     	2. 	
          Provide technical criteria, written descriptions, and design data for
          OWNER’s use in filing applications for permits from or approvals of
          governmental authorities having jurisdiction to review or approve the final
          design of the Project and assist OWNER in consultations with appropriate
          authorities. 

     	3. 	
          Advise OWNER of any adjustments to the opinion of probably Construction Cost and
          any adjustments to Total Project Costs known to ENGINEER. 

     	4. 	
          Perform or provide the following Final Design Phase tasks or deliverables:

	  	o  	  	Track
geometry & stationing based on the project coordinate system.  

	  	o  	  	Railroad
mile posts & 14’ clearance points for mainline turnouts.  

	  	o  	  	Location
& size of existing & new turnouts, derails & bumping posts.  

	  	o  	  	Show
present & proposed buildings including unloading doors, ramps and loadouts from
information provided by OWNER.  

	  	o  	  	Horizontal
& vertical clearances.  

	  	o  	  	Loadout
sequence.  

	  	o  	  	Location
of overhead & buried utilities with dimension to top of rail.  

	  	o  	  	Location
of fencing and gates. o Location, length & type of grade crossing surface and warning
devices.  

	  	o  	  	Typical
track cross section and walkway details  

	  	o  	  	Construction
sequencing plan.  

	  	o  	  	Traffic
control & signing plan for access road crossings. 

	  	o  	  	Track
construction notes & details. 

	  	o  	  	Track
construction specifications. 

	  	o  	  	Final
Design plan check with OWNER at project site, if requested.  

     	5. 	
          Final Design Phase documents: drawings, notes and specifications indicating the
          specific character of work to be performed; final opinion of cost; and estimated
          construction quantities in sufficient detail to construct the planned facility.
          Final plans shall meet the requirements of the mainline railroad and other
          entities, if any having jurisdiction over the planned facility. ENGINEER shall
          not be responsible for those portions of the Work performed by others. 

     	6. 	
          furnish two sets of Final Design Phase documents to and review them with OWNER
          within 30 days after authorization to proceed with the Final Design Phase. 

     	7. 	
          Revise the Report in response to OWNER’s and other parties’ comments,
          as appropriate, and furnish two final copies of the revised Report to the OWNER
          within 7 days after completion of reviewing it with OWNER. 

In the event that the Work designed
or specified by ENGINEER is to be performed or furnished under more than one prime
contract, or it ENGINEER’s services are to separately sequenced with the work of one
or more prime Contractors (such as in the case of fast-tracking), OWNER and ENGINEER
shall, prior to commencement of the Final Design Phase, develop a schedule for performance
of ENGINEER’s services during the Final Design, Bidding or Negotiating, Construction,
and Post-Construction Phases in order to sequence and coordinate properly such services as
are applicable to the work under such separate prime contracts. This schedule is to be
prepared and included in or become as amendment to Exhibit A whether or not the work under
such contracts is to proceed concurrently. The number of prime contracts for work designed
or specified by ENGINEER upon which the ENGINEER’s compensation has been established
under this Agreement is one. 

ENGINEER’s services under the
Final Design Phase will be considered complete on the date when the Final Design Phase
documents have been delivered to OWNER. 

EXHIBIT B –
OWNER’s Responsibilities 

Section 2 of the Standard Terms and
conditions is amended and supplemented to include the following agreement of the parties: 

In addition to other responsibilities
of OWNER as set forth in this Agreement, OWNER shall: 

     	A. 	
          Provide ENGINEER with all criteria and full information as to OWNER’s
          requirements for the Project, including design objectives and constraints,
          space, capacity and performance requirements, flexibility, and expandability,
          and any budgetary limitations; and furnish copies of all design and construction
          standards which OWNER will require to be included in the Drawings and
          Specifications; and furnish copies of OWNER’s standard forms, conditions,
          and related documents for ENGINEER to include in the Bidding documents, when
          applicable. 

     	B. 	
          Furnish to ENGINEER any other available information pertinent to the Project
          including reports and data relative to previous designs, or investigation at or
          adjacent to the Site. 

     	C. 	
          Following ENGINEER’s assessment of initially-available Project information
          and data and upon ENGINEER’s request, furnish or otherwise make available
          such additional Project related information and data as is reasonably required
          to enable ENGINEER to complete its Basic and Additional Services. Such
          additional information or data would generally include the following: 

               	1. 	  	
           Property descriptions. 

               	2. 	  	
                      Zoning,
                      deed, and other land use restrictions.

               	3. 	  	
                    Property, boundary, easement, right-of-way, and other special surveys or data,
                    including establishing relevant reference points. 

               	4. 	  	
                    Explorations and tests of subsurface conditions at or contiguous to the Site,
                    drawings of physical conditions in or relating to existing surface or subsurface
                    structures at or contiguous to the Site, or hydrographic surveys, with
                    appropriate professional interpretation thereof. 

               	5. 	  	
                    Environmental assessments, audits, investigations and impact statements, and
                    other relevant environmental or cultural studies as to the Project, the Site,
                    and adjacent areas. 

               	6. 	  	
                    Data or consultations as required for the Project but not otherwise identified
                    in the Agreement or the Exhibits thereto. 

     	D. 	
          Give prompt written notice to ENGINEER whenever OWNER observes or otherwise
          becomes aware of a Hazardous Environmental Condition or of any other development
          that affects the scope or time of performance of ENGINEER’s services, or
          any defect or nonconformance in ENGINEER’s services or in the work of any
          Contractor. 

     	E. 	
          Authorize ENGINEER to provide Additional Services as set forth in Part 2 of
          Exhibit A of the Agreement as required. 

     	 F. 	 Arrange for safe access
to and make
          all provisions for ENGINEER to enter upon public and private property as
          required for ENGINEER
to perform services under the Agreement. 

     	G. 	
          Examine all alternate solutions, studies, reports, sketches, Drawings,
          Specification, proposals, and other documents presented by ENGINEER (including
          obtaining advice of an attorney, insurance counselor, and other advisors or
          consultants as OWNER deems appropriate with respect to such examination) and
          render in writing timely decisions pertaining thereto. 

     	H. 	
          Provide reviews, approvals, and permits from all governmental authorities having
          jurisdiction to approve all phases of the Project designed or specified by
          ENGINEER and such reviews, approvals, and consents from others as may be
          necessary for completion of each phase of the Project. 

     	I. 	
          Provide, as required for the Project;  

	
  1.  

	  	Accounting,
bond and financial           advisory, independent cost estimating, and insurance
counseling services.  

	
  2.  

	  	Legal
services with regard to issues pertaining to the Project as OWNER requires,
Contractor raises, or ENGINEER reasonably requests.  

	
  3.  

	  	Such
auditing services as OWNER requires to ascertain how or for what purpose
                    contractor has used the moneys paid.  

	
  4.  

	  	Placement
and payment for advertisement                     for bids in appropriate publications.  

     	J. 	
          Advise ENGINEER of the identify and scope of services of any independent
          consultants employed by OWNER to perform or furnish services in regard to the
          Project, including, but not limited to, cost estimating, project peer review,
          value engineering, and constructibility review. 

     	K. 	
          Furnish to ENGINEER data as to OWNER’s anticipated costs for services to be
          provided by others for OWNER so that ENGINEER may make the necessary
          calculations to develop and periodically adjust ENGINEER’s opinion of the
          Total Project Costs. 

     	L. 	
          If OWNER designates a construction manager or an individual or entity other
          than, or in addition to, ENGINEER to represent OWNER a the Site, define and set
          forth as an attachment to this Exhibit B the duties, responsibilities, and
          limitations of authority of such other party and the relation thereof to the
          duties, responsibilities, and authority of ENGINEER. 

     	M. 	
          If more than one prime contract is to be awarded for the Work designed or
          specified by ENGINEER, designate a person or entity to have authority and
          responsibility for coordinating the activities among the various prime
          Contractors, and define and set forth the duties, responsibilities, and
          limitations or authority of such individual or entity and the relation thereof
          to the duties, responsibilities, and authority of ENGINEER as an attachment to
          this Exhibit B that is to be mutually agreed upon and made a part of this
          Agreement before such services begin. 

     	N. 	
          Attend the pre-bid conference, bid opening, pre-construction conferences,
          construction progress and other job related meetings, and Substantial Completion
          and final payment inspections. 

     	O. 	
          Provide the services of an independent testing laboratory to perform all
          inspections, tests, and approvals of Samples, materials, and equipment required
          by the Contract Documents, or to evaluate the performance of materials,
          equipment , and facilities of OWNER, prior to their incorporation into the Work
          with appropriate professional interpretation thereof. 

     	P. 	
          Provide inspection or monitoring services by an individual or entity other than
          ENGINEER (and disclose the identity of such individual or entity to ENGINEER) as
          OWNER determines necessary to verify: 

	
  1.

		
           That Contractor is complying with any
          Laws and Regulations applicable to Contractor’s performing and furnishing
          the Work 

	
  2.  

		
                    That Contractor is taking all necessary precautions for safety of persons or
                    property and complying with any special provisions of the Contract Documents
                    applicable to safety. 

     	Q. 	
          Provide ENGINEER with the findings and reports generated by the entities
          providing services pursuant to paragraphs O and P. 

	 R. 	 Provide ENGINEER with
          soils borings and geotechnical engineering data 

	S.	
          Schedule and conduct public
          meetings and hearings.

END 

EXHIBIT C –
Payments to ENGINEER for Services and Reimbursable Expenses

Section 4 of the Standard Terms and
Conditions is amended and supplemented to include the following agreement of the parties. 

ARTICLE 4 –
PAYMENTS TO THE ENGINEER 

For Basic Services Having
a Determined Scope – Lump sum Method of Payment 

OWNER shall pay ENGINEER for Basic
Services set forth in Exhibit A, Part I except for Study and Report Phase and services of
ENGINEER’s Resident Project Representative and Post-Construction Phase services, if
any, as follows: 

     	1. 	
          Lump Sum amount of 3% of the estimated total construction cost estimated to be
          $665,500 (=$19,966) based on the following assumed distribution of compensation: 

			
		a. 	Study and Report Phase	 	$     4,000	.00
		b.	Preliminary Design Phase-Grading Design	 	$     7,983	.00
		c.	Final Design Phase-Track Design	 	$     7,983	.00
		d.	Additional Services	 	Not included
		e.	Bidding and Negotiating Phase	 	Not included
		f.	Construction Phase (Up to 40 hrs.)	 	Not included

     	2. 	
          ENGINEER may alter the distribution of compensation between individual phases
          noted herein to be consistent with services actually rendered, but shall not
          exceed the total Lump Sum amount unless approved in writing by the OWNER. 

          

     	3. 	
          The Lump Sum includes compensation for ENGINEER’s services and services of
          ENGINEER’s Consultants, if any. Appropriate amounts have been incorporated
          in the Lump Sum to account for labor, overhead, profit, and Reimbursable
          Expenses. ENGINEER assumes full responsibility for, and shall pay, all
          contributions and taxes payable under federal and state social security acts,
          unemployment compensation laws, and income tax laws applicable to ENGINEER and
          its employees. 

          

     	4. 	
          The portion of the Lump Sum amount billed for ENGINEER’s services will be
          based upon ENGINEER’s estimate of the proportion of the total services
          actually completed during the billing period to the Lump Sum. 

          

     	5. 	
          The Lump Sum is conditioned on Contract Times to complete the Work not exceeding
          four months. Should the Contract Times to complete the Work be extended beyond
          this period, the total compensation to ENGINEER shall be appropriately adjusted. 

          

 
END 

STANDARD TERMS AND
CONDITIONS 

1. SERVICES OF ENGINEER 

     A.    
          ENGINEER shall provide the Basic and Additional Services set forth herein and in
          Exhibit A. 

     B.    
          Upon this Agreement becoming effective, ENGINEER is authorized to begin Basic
          Services as set forth in Exhibit A. 

2. OWNER’S
RESPONSIBILITIES 

OWNER shall have the responsibilities
set forth herein and in Exhibit B. 

3. TIMES FOR RENDERING
SERVICES 

     	A. 	
          If in this Agreement specific periods of time for rendering services are set
          forth or specific dates by which services are to be completed are provided, and
          if such periods of time or dates are changes through no fault of ENGINEER, the
          rates and amounts of compensation provided for herein shall be subject to
          equitable adjustment. If OWNER has requested changes in the scope, extent, or
          character of the Project, the time of performance of ENGINEER’s services
          shall be adjusted equitably. 

          

     	B. 	
          Suspension. If OWNER fails to give prompt written authorization to
          proceed with any phase of services after completion of the immediately preceding
          phase, or if ENGINEER’s services are delayed through no fault of ENGINEER,
          ENGINEER may, after giving seven days written notice to OWNER, suspend services
          under this Agreement. 

          

 
4. PAYMENTS TO ENGINEER 

     	A. 	
          Preparation and Payment of Invoices. Invoices will be prepared in
          accordance with ENGINEER’s standard invoicing practices. Invoices are due
          and payable upon receipt. If OWNER fails to make any payments due ENGINEER for
          services and expenses within 30 days after receipt of ENGINEER’s invoice
          therefore, the amounts due ENGINEER will be increased at the rate of 1.0% per
          month (or the maximum rate of interest permitted by law, if less) for said
          thirtieth day. In addition, ENGINEER may, after giving seven days written notice
          to OWNER, suspend services under this Agreement until ENGINEER has been paid in
          full all amounts due for services, expenses, and other related charges. Payment
          will be credited first to interest and then to principal. 

     	B. 	
          Disputed Invoices. In the event of a disputed or contested invoice, only
          that portion so contested may be withheld from payment, and the undisputed
          portion will be paid. 

     	C. 	
          Payments Upon Termination. In the event of any termination under Section
          6-General Conditions, ENGINEER will be entitled to invoice OWNER and will be
          paid in accordance with Exhibit C for all services performed or furnished and
          all Reimbursable Expenses incurred through the effective date of termination. 

     	D. 	
          Records of ENGINEER’s Costs. Records of ENGINEER’s costs
          pertinent to ENGINEER’s compensation under this Agreement shall be kept in
          accordance with generally accepted accounting practices. To the extent necessary
          to verify ENGINEER’s charges and upon OWNER’s timely request, copies
          of such records will be made available to OWNER at cost. 

          

5. OPINIONS OF COST 

ENGINEER’s opinions of probable
Construction Cost provided for herein are to be made on the basis of ENGINEER’s
experience and qualifications and represent ENGINEER’s best judgment as an
experienced and qualified professional generally familiar with the industry. ENGINEER
cannot and does not guarantee that proposals, bids, or actual Construction Cost will not
vary from opinions or probable Construction Cost prepared by ENGINEER. If OWNER wishes
grater assurance as to probable Construction Cost, OWNER shall employ an independent cost
estimator as provided in Exhibit B. 

6. GENERAL
CONSIDERATION 

Standards of Performance 

     	A. 	
          The standard of care for all professional engineering and related services
          performed or furnished by ENGINEER under this Agreement will be the care and
          skill ordinarily used by members of ENGINEER’s profession practicing under
          similar circumstances at the same time and in the same locality. ENGINEER makes
          no warranties, express or implied, under this Agreement or otherwise, in
          connection with ENGINEER’s services. 

     	B. 	
          ENGINEER and OWNER shall comply with applicable Laws or Regulations and
          OWNER-mandated standards. Changes to these requirements after the Effective Date
          of this Agreement may be the basis for modifications to OWNER’s
          responsibilities or to ENGINEER’s scope of services, times of performance,
          or compensation. 

     	C. 	
          OWNER shall be responsible for, and ENGINEER may rely upon, the accuracy and
          completeness of all requirements, programs, instructions, reports, data, and
          other information furnished by OWNER to ENGINEER pursuant to this Agreement.
          ENGINEER may use such requirements, reports, data, and information in performing
          or furnishing services under this Agreement. 

     	D. 	
          ENGINEER shall not be responsible for the acts or omissions of any
          Contractor(s), subcontractor or supplier, or of any of the Contractor’s
          agents or employees or any other persons (except ENGINEER’s own employees)
          at the Site or otherwise furnishing or performing any of the Contractor’s
          work; or for any decision made on interpretations or clarifications of the
          Contract Documents given by OWNER without consultation and advice of ENGINEER. 

     	E. 	
          ENGINEER shall keep confidential all information, drawings, specifications or
          data furnished by OWNER or prepared by ENGINEER specifically in connection with
          this Agreement. 

     	F. 	
          ENGINEER shall comply with applicable Federal, State, and local laws,
          ordinances, regulations, rules, and orders relating to the environment and
          occupational health and safety. ENGINEER shall not be responsible for safety and
          health of any persons on the Project except ENGINEER’s own employees. 

          

Use of Documents

 

     	A. 	
          All Documents are instruments of service in respect to this Project, and
          ENGINEER shall retain an ownership and property interest therein (including the
          right of reuse at the discretion of the ENGINEER) whether or not the Project is
          completed. 

     	B. 	
          Copies of Documents that may be relied upon by OWNER are limited to the printed
          copies (also known as hard copies) that are signed or sealed by the ENGINEER.
          Files in electronic media format of text, data, graphics, or of other types that
          are furnished by ENGINEER to OWNER are only for convenience of OWNER. Any
          conclusion or information obtained or derived from such electronic files will be
          at the user’s sole risk. If there is a discrepancy between the electronic
          files and the hard copies, the hard copies govern. 

     	C. 	
          OWNER may make and retain copies of Documents for information and references in
          connection with use on the Project by OWNER. Such Documents are not intended or
          represented to be suitable for reuse by OWNER or others on extensions of the
          Project or on any other project. Any such reuse or modification without written
          verification or adaptation by ENGINEER, as appropriate for the specific purpose
          intended, will be at OWNER’s sole risk and without liability or legal
          exposure to ENGINEER or to ENGINEER’s Consultants. OWNER shall indemnify
          and hold harmless ENGINEER and ENGINEER’s Consultants from all claims,
          damages, losses, and expenses, including attorneys’ fees arising out of or
          resulting therefrom. 

 
Insurance 

     	A. 	
          ENGINEER shall procure and maintain insurance as set forth in Exhibit G,
          “Insurance”. 

     	B. 	
          OWNER shall procure and maintain insurance as set forth in Exhibit G,
          “Insurance”. OWNER shall cause ENGINEER and ENGINEER’s
          Consultants to be listed as additional insureds on any general liability or
          property insurance policies carried by OWNER which are applicable to the
          Project. 

     	C. 	
          OWNER and ENGINEER shall each delivery to the other certificates of insurance
          evidencing the coverages indicated in Exhibit G. Such certificates shall be
          furnished prior to commencement of ENGINEER’s services and at renewals
          thereafter during the life of the Agreement. 

 
Termination 

     	A. 	
          The obligation to provide further services under this Agreement may be
          terminated:  

		
 1. For cause, 

               	a. 	  	
                    By either party upon 30 days written notice in the event of substantial failure
                    by the other party to perform in accordance with the terms hereof through no
                    fault of the terminating party. 

               	b. 	  	
                    By ENGINEER, upon seven days written notice if ENGINEER believes that ENGINEER
                    is being requested by OWNER to furnish or perform services contrary to
                    ENGINEER’s responsibilities as a licensed professional or, upon seven days
                    written notice if the ENGINEER’s services for the Project are delayed or
                    suspended for more than 90 days for reasons beyond ENGINEER’s control.
                    ENGINEER shall have no liability to OWNER on account of such termination. 

	
                                 2. 
                      For convenience, 

	a.		
          By OWNER effective upon the receipt of notice by ENGINEER. 

                    

Controlling Law 

This Agreement is to be governed by
the law of the state of Nebraska. 

Successors, Assigns, and
Beneficiaries 

     	A. 	
          OWNER and ENGINEER each is hereby bound and the partners, successors, executors,
          administrators, and legal representatives of OWNER and ENGINEER (and to the
          extent permitted by the following paragraph, the assigns of OWNER and ENGINEER)
          are hereby bound to the other party to this Agreement and to the partners,
          successors, executors, administrators, and legal representatives (and said
          assigns) of such other party, in respect of all covenants, agreements, and
          obligations of this Agreement. 

     	B. 	
          Neither OWNER nor ENGINEER may assign, sublet, or transfer any rights under or
          interest (including, but not without limitation, moneys that are due or may
          become due) in this Agreement without the written consent of the other, except
          to the extent that any assignment, subletting, or transfer is mandated or
          restricted by law. Unless specifically stated to the contrary in any written
          consent to an assignment, no assignment will release or discharge the assignee
          from any duty or responsibility under this Agreement. 

 
Hazardous Environmental
Condition 

     	A. 	
          OWNER represents to ENGINEER that to the best of its knowledge a Hazardous
          Environmental Condition does not exist. It is acknowledged by both parties that
          ENGINEER’s scope of services does not include any services related to a
          Hazardous Environmental Condition. If a Hazardous Environmental Condition is
          encountered or alleged, ENGINEER shall have the obligation to notify OWNER and,
          to the extent of applicable Laws and Regulations, appropriate governmental
          officials. 

     	B. 	
          OWNER acknowledges that ENGINEER is performing professional services for OWNER
          and that ENGINEER is not and shall not be required to become an
          “arranger”, “operator”, “generator”, or
          “transporter” of hazardous substances, as defined in the Comprehensive
          Environmental Response, Compensation, and Liability Act of 1990 (CERCLA), which
          are or may be encountered at or near the Site in connection with ENGINEER’s
          activities under this Agreement. 

 
Allocation of Risks 

Indemnification: 

     	A. 	
          To the fullest extent permitted by law, ENGINEER and OWNER shall indemnify and
          hold harmless each other, their officers, directors, partners, and employees
          from and against any and all costs, losses, and damages (including but not
          limited to all fees and charges of engineers, architects, attorneys, and other
          professionals, and all court or arbitration or other dispute resolution costs)
          caused solely by their negligent acts or omissions or those of their officers,
          directors, partners, employees, and consultants with respect to this Agreement. 

     	B. 	
          To the fullest extent permitted by law, ENGINEER’s total liability to OWNER
          and anyone claiming by, through, or under OWNER for any cost, loss, or damages
          caused in part by the negligence of ENGINEER and in part by the negligence of
          OWNER or any other negligent entity or individual, shall not exceed the
          percentage share that ENGINEER’s negligence bears to the total negligence
          of OWNER, ENGINEER, and all other negligent entities and individuals. 

     	C. 	
          In addition, OWNER shall indemnify and hold harmless ENGINEER and its officers,
          directors, partners, employees, and ENGINEER’s Consultants from and against
          all costs, losses, and damages caused by, arising out of, or resulting from a
          Hazardous Environmental Condition. 

ENGINEER’s Liability Limited to
Amount of ENGINEER’s Compensation: To the fullest extent permitted by law, and
notwithstanding any other provision of this Agreement, the total liability, in the
aggregate, of ENGINEER and ENGINEER’s officers, directors, partners, employees,
agents, and ENGINEER’s Consultants, and any of them, to OWNER and anyone claiming by,
through, or under OWNER for any and all claims, losses, costs, or damages whatsoever
arising out of, resulting from, or in any way related to the Project or the Agreement from
any cause or causes, including but not limited ot the negligence professional errors or
omissions, strict liability or breach of contract, or warranty express or implied of
ENGINEER or ENGINEER’s officers, directors, partners, employees, agents, or
ENGINEER’s Consultants, or any of them, shall not exceed the total compensation
received by ENGINEER under this Agreement. 

Notices 

Any notice required under this
Agreement will be in writing, addressed to the appropriate party at its address on the
signature page and given personally, or by registered or certified mail postage prepaid,
or by a commercial courier service. All notices shall be effective upon the date of
receipt. 

Survival 

All express representations,
indemnifications, or limitations of liability included in this Agreement will survive its
completion or termination for any reason. 

Severability 

Any provision or part of the
Agreement held to be void or unenforceable under any Laws or Regulations shall be deemed
stricken, and all remaining provisions shall continue to be valid and binding upon OWNER
and ENGINEER, who agree that the Agreement shall be reformed to replace such stricken
provision or part thereof with a valid and enforceable provision that comes as close as
possible to expressing the intention of the stricken provision. 

Waiver 

Non-enforcement of any provision by
either party shall not constitute a waiver of that provision, nor shall it affect the
enforceability of that provision or of the remainder of this Agreement. 

7. DEFINITIONS 

Defined Terms 

Wherever used in this Agreement
(including the Exhibits hereto) and printed with initial or all capital letters, the terms
listed below have the meanings indicated, which are applicable to both the singular and
plural thereof: 

     	1. 	
          Addenda – Written or graphic instruments issued prior to the opening
          of Bids which clarify, correct, or change the Bidding Documents. 

     	2. 	
          Agreement – This “Standard Form of Agreement between OWNER and
          ENGINEER for Professional Services”, including Exhibits. 3. Bid
          – The offer or proposal of the bidder submitted on the prescribed form
          setting forth the prices for the Work to be  performed. 

     	4. 	
          Bidding Documents – The advertisement or invitation to Bid,
          instructions to bidders, the Bid form and attachments, the Bid bond, if any, the
          proposed Contract Documents, and all Addenda, if any. 

     	5. 	
          Construction Cost – The cost to OWNER of those portions of the
          entire Project designed or specified by ENGINEER. Construction Cost does not
          include costs of services of ENGINEER or other design professionals and
          consultants, cost of land, rights-of-way, or compensation for damages to
          properties, or OWNER’s costs for legal, accounting, insurance counseling or
          auditing services, or interest and financing charges incurred in connection with
          the Project, or the cost of other services to be provided by others to OWNER
          pursuant to Exhibit B of this Agreement. Construction Cost is one of the items
          comprising Total Project Costs. 

     	6. 	
          Contract Documents – Documents that establish the rights and
          obligations of the parties engaged in construction and include the Construction
          Agreement between OWNER and Contractor, Addenda (which pertain to the Contract
          Documents)), Contractor’s Bid (including documentation accompanying the Bid
          and any post-Bid documentation submitted prior to the notice of award) when
          attached as an exhibit to the Construction Agreement, the notice to proceed, the
          bonds, appropriate certifications, the General Conditions, the Supplementary
          Conditions, the Specifications and the Drawings as the same are more
          specifically identified in the Construction Agreement, together with all Written
          Amendments, Change Orders, Work Change Directives, Field Orders, and
          ENGINEER’s written interpretations and the clarifications issued on or
          after the Effective Date of the Construction Agreement. Approved Shop Drawings
          and the reports and drawings of subsurface and physical conditions are not
          Contract Documents. 

     	7. 	
          Documents – Data, reports, Drawings, Specifications, Record
          Drawings, and other deliverables, whether in printed or electronic media format,
          provided or furnished in appropriate phases by ENGINEER to OWNER pursuant to
          this Agreement. 

     	8. 	
          Drawings – That part of the Contract documents prepared or approved
          by ENGINEER which graphically shows the scope, extent, and character of the Work
          to be performed by Contractor. Shop Drawings are not Drawings as so defined. 

     	9. 	
          Effective Date of the Agreement – The date indicated in this
          Agreement upon which it becomes effective, but if no such date is indicated, it
          means the date on which the Agreement is signed and delivered by the last of the
          two parties to sign and deliver. 

     	10. 	
          ENGINEER’s Consultants – Individuals or entities having a
          contract with ENGINEER to furnish services with respect to this Project as
          ENGINEER’s independent professional associates, consultants,
          subcontractors, or vendors. The term ENGINEER includes ENGINEER’s
          Consultants. 

     	11. 	
          Hazardous Environmental Condition – The presence at the Site of
          Asbestos, PCB’s, Petroleum, Hazardous Waste, or Radioactive Materials in
          such quantities or circumstances that may present a substantial danger to
          persons or property exposed thereto in connection with the Work. 

     	12. 	
          Hazardous Waste – The term Hazardous Waste shall not have the
          meaning provided in Section 1004 of the Solid Waste Disposal Act (42 USC Section
          6903) as amended from time to time. 

     	13. 	
          Laws and Regulations; Laws or Regulations – Any and all applicable
          laws, rules, regulations, ordinances, codes, standards, and orders of any and
          all governmental bodies, agencies, authorities and courts having jurisdiction. 

     	14. 	
          Site – Lands or areas indicated in the Contract Documents as being
          furnished by OWNER upon which the Work is to be performed, rights-of-way and
          easements for access thereto, and such other lands furnished by OWNER which are
          designated for use of Contractor. 

     	15. 	
          Specifications – That part of the Contract Documents consisting of
          written technical descriptions of materials, equipment, systems, standards, and
          workmanship as applied to the Work and certain administrative details applicable
          thereto. 

     	16. 	
          Work – The entire completed construction or the various separately
          identifiable parts thereof required to be provided under the Contract Documents
          with respect to this Project. Work includes and is the result of performing or
          furnishing labor, services, and documentation necessary to produce such
          construction and furnishing, installing, and incorporating all materials and all
          equipment into such construction, all as required by the Contract Documents. 

 
END 

[GRAPHIC]Exhibit 4.2

                        CROSS MEDIA MARKETING CORPORATION

                           CERTIFICATE OF DESIGNATION
                                       OF
                              SERIES C CONVERTIBLE
                                 PREFERRED STOCK

                (Pursuant to Section 151 of the Delaware General
                                Corporation Law)

            The undersigned, the authorized officer of Cross Media Marketing
Corporation, a Delaware corporation (the "Corporation"), in accordance with the
provisions of Section 103 of the Delaware General Corporation Law (the "DGCL")
does hereby certify that, in accordance with Section 141 of the DGCL, the
following resolution was duly adopted by the Board of Directors of the
Corporation on November 6 2002:

            RESOLVED, that the Executive Committee of the Board of Directors,
pursuant to authority expressly vested in it by the Board, hereby authorizes the
issuance of a series of Preferred Stock, par value $.001 per share, of the
Corporation, and hereby fixes the designation, preferences, rights and other
terms thereof, in addition to those set forth in the Certificate of
Incorporation of the Corporation, as follows:

                              SERIES C CONVERTIBLE
                                 PREFERRED STOCK

            Section 1. Designation and Amount: Stated Capital. The shares of
such series shall be designated as "Series C Convertible Preferred Stock" (the
"Series C Convertible Preferred Stock"), the par value thereof shall be $.001
per share and the number of shares constituting the Series C Convertible
Preferred Stock shall be 2,000. The amount to be represented in stated capital
at all times for each share of Series C Convertible Preferred Stock shall be
$950.00 (the "Stated Value").

            Section 2. Rank. With respect to dividend rights and rights on
liquidation, winding-up and dissolution, the Series C Convertible Preferred
Stock will rank: (i) senior to: (A) the common stock, par value $0.001 per share
(the "Common Stock") of the Corporation; (B) all other classes of common stock
of the Corporation; and (C) each other class or series of preferred stock of the
Corporation now or hereafter established by the Board of Directors (the "Board
of Directors" or the "Board") of the Corporation, the terms of which do not
expressly provide that it ranks senior to, or on a parity with, the Series C
Convertible Preferred Stock as to dividend and

<PAGE>

redemption rights and rights on liquidation, winding-up and dissolution of the
Corporation (collectively referred to as "Junior Stock"); (ii) on a parity with
each other class or series of preferred stock of the Corporation established
hereafter by the Board of Directors, the terms of which expressly provide that
such class or series will rank on a parity with the Series C Convertible
Preferred Stock as to dividend and redemption rights and rights on liquidation,
winding-up and dissolution (collectively referred to as "Parity Stock"); and
(iii) junior to each class or series of preferred stock of the Corporation
established hereafter by the Board, the terms of which class or series expressly
provide that such class or series will rank senior to the Series C Convertible
Preferred Stock as to dividend and redemption rights or rights on liquidation,
winding-up and dissolution of the Corporation (collectively referred to as
"Senior Stock").

            Section 3. Dividends and Distributions.

            (a) The holders of shares of Series C Convertible Preferred Stock
shall be entitled to receive dividends at an annual rate of 8%, payable at the
option of the Company, in cash or shares of Common Stock.

            (b) Dividends shall accrue and be payable monthly, in arrears, on
the last day of each month, beginning January 31, 2003 (each, a "Dividend
Payment Date"); provided, however, that all accrued and unpaid dividends with
respect to any share of Series C Convertible Preferred Stock shall be payable on
the date that such share is redeemed in accordance with Section 7 or Section 8
or on the Put Date if shares Put to the Corporation in accordance with Section
9.

            (c) In the event that the Corporation elects to make a dividend
payment in shares of Common Stock, the number of shares of Common Stock issuable
as payment of such dividend shall be determined by dividing the total amount of
dividends due by the Fair Market Value (defined in Section 14(a)) of the Common
Stock on the Dividend Payment Date.

            (d) The holders of Series C Convertible Preferred Stock shall not be
entitled to receive any dividends or other distributions, except as set forth in
this Section 3.

            Section 4. Liquidation Preference. In the event of a liquidation,
dissolution or winding-up of the Corporation, whether voluntary or involuntary,
the holders of Series C Convertible Preferred Stock shall be entitled to receive
out of the assets of the Corporation, whether such assets constitute stated
capital or surplus of any nature, a sum in cash equal to the Stated Value per
share (the "Liquidation Preference"), together with an amount equal to the
dividends accrued and unpaid thereon (whether or not declared) to the date of
final distribution to such holders, without interest, and no more, before any
payment shall be made or any assets distributed to the holders of any Junior
Stock; provided, however, that such rights shall accrue to the holders of Series
C Convertible Preferred Stock only if the Corporation's payments with respect to
the liquidation preference of the holders of Senior Stock are fully met. After
the liquidation preferences of the Senior Stock are fully met, the entire assets
of the Corporation available for distribution shall be distributed ratably among
the holders of the Series C Convertible Preferred Stock and any Parity Stock in
proportion to the respective preferential amounts to which each is entitled (but
only to the extent of such preferential amounts). After

                                      -2-
<PAGE>

payment in full of the accrued and unpaid dividends and the Liquidation
Preference of the shares of Series C Convertible Preferred Stock as provided in
this Section 4, the holders of such shares shall not be entitled to any further
participation in any distribution of assets by the Corporation. Neither a
consolidation or merger of the Corporation with another corporation nor a sale
or transfer of all or part of the Corporation's assets for cash, securities or
other property will be considered a liquidation, dissolution or winding-up of
the Corporation.

      Section 5. No Sinking Fund.

            The shares of Series C Convertible Preferred Stock shall not be
subject to the operation of a purchase, retirement or sinking fund.

            Section 6. Conversion.

            (a) Subject to Section 9, at any one time after the date of initial
issuance of the Series C Convertible Preferred Stock (the "Initial Issuance
Date"), the holders of the Series C Convertible Preferred Stock shall have the
right, to convert the Series C Convertible Preferred Stock into shares of Common
Stock in accordance with this Section 6. The conversion rights in this Section 6
must be exercised as to all of the shares of Series C Convertible Preferred
Stock, except for any shares of Series C Convertible Preferred Stock redeemed by
the Corporation in accordance with Section 7 or Section 8 or put to the
Corporation by the Majority Holders (defined in Section 14(b)) in accordance
with Section 9. Each share of Series C Convertible Preferred Stock shall be
convertible at the Corporation's office into that number of fully paid and
nonassessable shares of Common Stock (calculated as to each conversion to the
nearest 1/100th of a share) (the "Conversion Shares") as shall be equal to the
Conversion Rate (as hereinafter defined) in effect at the time of conversion.
The "Conversion Rate" shall be equal to (i) $950 divided by (ii) the lesser of
(A) $11.991 (the "Closing Price") and (B) the greater of (x) Fair Market Value
(defined in Section 14(a)) on the Valuation Date (defined in Section 14(c)) and
(y) $10.1924 (the "Floor Price"); provided, however, that in the event that any
shares of Series C Convertible Preferred Stock are converted into shares of
Common Stock following the Trigger Date (as defined in Section 9(a)), the
Conversion Rate shall be equal to (1) $190.00 divided by (2) $5.00 (the "Trigger
Price").

            (b) The right of the holders of Series C Convertible Preferred Stock
to convert their shares shall be exercised by surrendering for such purposes to
the Corporation or its agent, as provided above, certificates representing the
shares of Series C Convertible Preferred Stock to be converted, duly endorsed in
blank or accompanied by proper instruments of transfer and a written notice of
conversion executed by the Majority Holders. If the holders of shares of Series
C Convertible Preferred Stock elect to convert less than all of the shares
following (i) the Corporation's mailing of a notice of redemption in accordance
with Section 7, or (ii) the Majority Holders' mailing of a Put Notice in
accordance with Section 9, the Conversion will be effected on the Optional
Redemption Date (as defined in Section 7(b)) or the Put Date (as defined in
Section 9(b)), as the case may be, and the holders of Series C Convertible
Preferred Stock may condition such conversion upon the redemption of the shares
of Series C Convertible Preferred Stock not being so converted. A notice of
conversion shall not be effective unless (i) executed by the Majority Holders
and (ii) either (A) states that all of the shares of Series C Convertible

                                      -3-
<PAGE>

Preferred Stock are being converted or (B) is accompanied by a Put Notice
executed by the Majority Holders in accordance with Section 9 for the shares of
Series C Convertible Preferred Stock not being so converted. The Corporation
shall not, however, be required to pay any tax which may be payable in respect
of any transfer involved in the issue and delivery upon conversion of shares of
Common Stock or other securities or property in a name other than that of the
holder of the shares of the Series C Convertible Preferred Stock being
converted, and the Corporation shall not be required to issue or deliver any
such shares or other securities or property unless and until the person or
persons requesting the issuance thereof shall have paid to the Corporation the
amount of any such tax or shall have established to the satisfaction of the
Corporation that such tax has been paid.

      (c) The Corporation shall take all action necessary so that a number of
shares of the authorized but unissued Common Stock (or common stock in the case
of any successor corporation) sufficient to provide for the conversion of the
Series C Convertible Preferred Stock outstanding upon the basis hereinbefore
provided are at all times reserved by the Corporation, free from preemptive
rights, for such conversion, subject to the provisions of Section 6(d). If the
Corporation shall issue any securities or make any change in its capital
structure which would change the number of shares of Common Stock into which
each share of the Series C Convertible Preferred Stock shall be convertible as
herein provided, the Corporation shall at the same time also make proper
provision so that thereafter there shall be a sufficient number of shares of
Common Stock authorized and reserved, free from preemptive rights, for
conversion of the outstanding Series C Convertible Preferred Stock on the new
basis.

      (d) Subject to the Corporation's rights under Section 7, in case of any
consolidation or merger of the Corporation with any other corporation or in case
of any sale or transfer of all or substantially all of the assets of the
Corporation, or in the case of any share exchange, in each case pursuant to
which all of the outstanding shares of Common Stock are converted into other
securities, cash or other property, the Corporation shall make appropriate
provision or cause appropriate provision to be made so that each holder of
shares of Series C Convertible Preferred Stock then outstanding shall have the
right thereafter (in lieu of the right to convert into Common Stock, which right
shall cease) to convert such shares of Series C Convertible Preferred Stock into
the kind and amount of securities, cash or other property receivable upon such
consolidation, merger, sale, transfer or share exchange by a holder of the
number of shares of Common Stock into which such shares of Series C Convertible
Preferred Stock could have been converted immediately prior to the effective
date of such consolidation, merger, sale, transfer or share exchange. If, in
connection with any such consolidation, merger, sale, transfer or share
exchange, each holder of shares of Common Stock is entitled to elect to receive
either securities, cash or other property upon completion of such transaction,
the Corporation shall provide or cause to be provided each holder of Series C
Convertible Preferred Stock the right to elect the securities, cash (other than
by the exercise of appraisal rights) or other property into which the Series C
Convertible Preferred Stock held by such holder shall be convertible after
completion of any such transaction on the same terms and subject to the same
conditions applicable to holders of the Common Stock (including, without
limitation, notice of the right to elect, limitations on the period in which
such election shall be made and the effect of failing to exercise the election).
The Corporation shall not effect any such transaction unless the

                                      -4-
<PAGE>

provisions of this Section 6(d) have been complied with. The above provisions
shall similarly apply to successive consolidations, mergers, sales, transfers or
share exchanges.

            (e) Upon the surrender of certificates representing shares of Series
C Convertible Preferred Stock, the person converting shall be deemed to be the
holder of record of the Common Stock issuable upon such conversion, and all
rights with respect to the shares surrendered shall forthwith terminate except
the right to receive the Common Stock or other securities, cash or other
property as herein provided.

            (f) No fractional shares of Common Stock shall be issued upon
conversion of Series C Convertible Preferred Stock but, in lieu of any fraction
of a share of Common Stock which would otherwise be issuable in respect of the
aggregate number of such shares surrendered for conversion at one time by the
same holder, the Corporation shall pay in cash an amount equal to the product of
(i) the Fair Market Value and (ii) such fraction of a share.

            (g) The Closing Price, Floor Price and the Trigger Price shall be
adjusted from time to time under certain circumstances in case the Corporation
shall (i) pay a dividend or make a distribution on its Common Stock in shares of
its capital stock, (ii) subdivide its outstanding Common Stock into a greater
number of shares, (iii) combine the shares of its outstanding Common Stock into
a smaller number of shares, or (iv) issue by reclassification of its Common
Stock any shares of its capital stock, then in each such case the Closing Price,
the Floor Price and the Trigger Price in effect immediately prior thereto shall
be proportionately adjusted so that the holder of any Series C Convertible
Preferred Stock thereafter surrendered for conversion shall be entitled to
receive, to the extent permitted by applicable law, the number and kind of
shares of capital stock of the Corporation which it would have owned or have
been entitled to receive after the happening of such event had such Series C
Convertible Preferred Stock been converted immediately prior to the record date
for such event (or if no record date has been established in connection with
such event, the effective date for such action). An adjustment pursuant to this
Section 6(g) shall become effective immediately after the record date in the
case of a stock dividend or distribution and shall become effective immediately
after the effective date in the case of a subdivision, combination, or
reclassification. All calculations hereunder shall be made to the nearest cent
or to the nearest 1/100 of a share, as the case may be.

            (h) If at any time as a result of an adjustment made pursuant to
Section 6(g), the holder of any Series C Convertible Preferred Stock thereafter
surrendered for conversion shall become entitled to receive securities, cash, or
assets other than Common Stock, the number or amount of such securities or
property so receivable upon conversion shall be subject to adjustment from time
to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Common Stock contained in Section 6(g) above.

            (i) Except as otherwise provided, in this Section 6, no adjustment
in the Closing Price, Floor Price, Trigger Price or Conversion Rate shall be
made in respect of any conversion for share distributions or dividends
theretofore declared and paid or payable on the Common Stock.

                                      -5-
<PAGE>

            (j) Whenever the Closing Price, Floor Price or the Trigger Price is
adjusted, the Corporation will give notice by mail to the holders of record of
Series C Convertible Preferred Stock, which notice shall be made within 45 days
after the effective date of such adjustment and shall state the adjustment, the
Closing Price, the Floor Price and the Trigger Price. Notwithstanding the
foregoing notice provisions, failure by the Corporation to give such notice or a
defect in such notice shall not affect the binding nature of such corporate
action of the Corporation.

            Section 7. Optional Redemption by the Corporation

            (a) The Corporation shall have the right, at its sole option and
election, made in accordance with Section 7(c), to redeem, out of funds legally
available therefor, the shares of Series C Convertible Preferred Stock, in whole
(or in part to the extent of any shares of Series C Convertible Preferred Stock
not converted in accordance with Section 6), at a price (the "Optional
Redemption Price") equal to the Stated Value.

            (b) If the Corporation shall propose to redeem any of the
outstanding shares of Series C Convertible Preferred Stock as provided in
Section 7(a), notice shall be mailed by certified mail, postage paid, return
receipt requested, or via overnight courier, not less than twenty five (25) days
nor more than sixty (60) days prior to the date that the Corporation redeems all
of then outstanding shares of Series C Convertible Preferred Stock as provided
in Section 7(a) (the "Optional Redemption Date"), to the holders of record of
the outstanding Series C Convertible Preferred Stock. Holders of Series C
Convertible Preferred Stock shall have conversion rights in accordance with
Section 6 until the close of business on the business day immediately preceding
the date fixed for redemption. In order to facilitate the redemption of shares
of Series C Convertible Preferred Stock, the Board of Directors may fix a record
date for the determination of shares to be redeemed and the date fixed for such
redemption. Any notice which is mailed as herein provided shall be conclusively
presumed to have been duly given, whether or not the holder of the Series C
Convertible Preferred Stock receives such notice; and failure to give such
notice by mail, or any defect in such notice, to the holders of any shares
designated for redemption shall not affect the validity of the proceedings for
the redemption of such shares or any other shares of Series C Convertible
Preferred Stock.

            (c) Each holder of the shares of Series C Convertible Preferred
Stock shall surrender the certificate (or certificates) evidencing such shares
to the Corporation and shall thereupon be entitled to receipt of payment for
such shares as provided in Section 7(a). If, on the Optional Redemption Date,
funds necessary for the redemption shall be available therefor and shall have
been irrevocably deposited or set aside, then, notwithstanding that the
certificates evidencing any shares of Series C Convertible Preferred Stock shall
not have been surrendered, the dividends with respect to such shares shall cease
to accrue after the Optional Redemption Date, such shares shall no longer be
deemed outstanding, the holders thereof shall cease to be stockholders, and all
rights whatsoever with respect such shares (except the right of the holders to
receive the Optional Redemption Price, without interest, upon surrender of their
certificates therefor) shall terminate. Any monies deposited by the Corporation
pursuant to the foregoing provision and unclaimed at the end of one year from
the Optional Redemption Date shall, to the

                                      -6-
<PAGE>

extent permitted by law, be returned to the Corporation, after which the holders
of shares of Series C Convertible Preferred Stock shall look only to the
Corporation for the payment thereof.

            (d) The Optional Redemption Price provided for in Section 7(c) shall
be subject to appropriate adjustment by the Board of Directors of the
Corporation in the event of any stock split, stock dividend or similar division
of shares of Series C Convertible Preferred Stock or reverse split or similar
combination of the Series C Convertible Preferred Stock.

            Section 8. Mandatory Redemption by the Corporation.

            (a) The Corporation shall redeem an aggregate of one hundred eleven
(111) shares of Series C Convertible Preferred Stock per month, pro rata among
the holders of the Series C Convertible Preferred Stock, on the last day of each
month beginning on January 31, 2003 through May 31, 2004 and the balance of the
Series C Convertible Preferred Stock on June 30, 2004 (each, a "Mandatory
Redemption Date"), by paying in cash, out of funds legally available therefore,
a sum per share equal to the Stated Value (the "Mandatory Redemption Price");
provided, however, that the Corporation shall not be required to make a
redemption not in accordance with the DGCL.

            (b) On or prior to each Mandatory Redemption Date, each holder of
the shares of Series C Convertible Preferred Stock shall surrender the
certificate (or certificates) evidencing such shares entitled to be redeemed on
such Mandatory Redemption Date to the Corporation and shall thereupon be
entitled to receive payment of the Mandatory Redemption Price for such shares as
provided in Section 8(a). If, on a Mandatory Redemption Date, funds necessary
for the redemption shall be available therefor and shall have been irrevocably
deposited or set aside, then, notwithstanding that the certificates evidencing
any shares of Series C Convertible Preferred Stock shall not have been
surrendered, the dividends with respect to such shares shall cease to accrue
after such Mandatory Redemption Date, such shares shall no longer be deemed
outstanding, the holders thereof shall cease to be stockholders, and all rights
whatsoever with respect such shares (except the right of the holders to receive
the Mandatory Redemption Price for such shares, without interest, upon surrender
of their certificates therefor) shall terminate. Any monies deposited by the
Corporation pursuant to the foregoing provision and unclaimed at the end of one
year from a Mandatory Redemption Date shall, to the extent permitted by law, be
returned to the Corporation, after which the holders of shares of Series C
Convertible Preferred Stock shall look only to the Corporation for the payment
thereof.

            (c) The Mandatory Redemption Price provided for in Section 8(a)
shall be subject to appropriate adjustment by the Board of Directors of the
Corporation in the event of any stock split, stock dividend or similar division
of shares of Series C Convertible Preferred Stock or reverse split or similar
combination of the Series C Convertible Preferred Stock.

            Section 9. Put Right.

            (a) Subject to the other provisions of this Section 9, if the
Corporation defaults on any payment due to the holders of Series C Convertible
Preferred Stock on any Mandatory Redemption Date in accordance with the
provisions of Section 8(a) above, and such

                                      -7-
<PAGE>

default continues until the latter of (i) the tenth (10th) day after such
Mandatory Redemption Date or (ii) the tenth (10th) day after the Corporation's
receipt of the certificate (or certificates) evidencing the shares of Series C
Convertible Preferred Stock to be so redeemed ("Trigger Date"), then, in such
event, the Majority Holders shall have the right at any one time, exercisable
prior to the earlier of (i) the next Mandatory Redemption Date or (ii) the cure
of such default, to require the Corporation to purchase any or all of the shares
of Series C Convertible Preferred Stock (the "Put") for a sum per share equal to
the Stated Value (the "Put Price"); provided, however, that (i) if the Put is
exercised for less than all the shares of Series C Convertible Preferred Stock,
the remaining shares of Series C Convertible Preferred Stock shall automatically
be converted on the Put Date (defined in Section 9(b)) in accordance with
Section 6 or (ii) the Corporation shall not be required to purchase such shares
not in accordance with the DGCL.

            (b) If the Majority Holders shall propose to exercise the Put as
provided in Section 9(a) notice (the "Put Notice") shall be mailed by certified
mail, postage prepaid, return receipt requested or via overnight courier, of the
exercise of the Put to the Corporation not less than twenty five (25) days nor
more than sixty (60) days prior to the date of the exercise of the Put (the "Put
Date"). On or prior to the Put Date, each holder of the shares of Series C
Convertible Preferred Stock shall surrender the certificate (or certificates)
evidencing such shares to the Corporation and shall thereupon be entitled to
receipt of payment for the Put Price. If, on the Put Date, funds necessary for
the Put Price shall be available therefor and shall have been irrevocably
deposited or set aside, then, notwithstanding that the certificates evidencing
any shares of Series C Convertible Preferred Stock shall not have been
surrendered, the dividends with respect to such shares shall cease to accrue
after the Put Date, such shares shall no longer be deemed outstanding, the
holders thereof shall cease to be stockholders, and all rights whatsoever with
respect such shares (except the right of the holders to receive the Put Price,
without interest, upon surrender of their certificates therefor) shall
terminate. Any monies deposited by the Corporation pursuant to the foregoing
provision and unclaimed at the end of one year from the Put Date shall, to the
extent permitted by law, be returned to the Corporation, after which the holders
of shares of Series C Convertible Preferred Stock shall look only to the
Corporation for the payment thereof.

            (c) The Put Price provided for in Section 9(a) shall be subject to
appropriate adjustment by the Board of Directors of the Corporation in the event
of any stock split, stock dividend or similar division of shares of Series C
Convertible Preferred Stock or revise split or similar combination of the Series
C Convertible Preferred Stock.

            Section 10. Voting Rights.

            (a) The holders of Series C Convertible Preferred Stock will not
have any voting rights except as set forth in this Section 10 or as otherwise
from time to time required by law.

            (b) The affirmative vote or consent of the Majority Holders, voting
separately as a class, will be required for any amendment, alteration or repeal
of this Certificate of Designation, if such amendment, alteration or repeal
materially and adversely affects the rights,

                                      -8-
<PAGE>

preferences or privileges of the Series C Convertible Preferred Stock. The
creation, authorization or issuance of any series or shares of any Senior Stock,
Parity Stock or Junior Stock or the increase or decrease in the amount of
authorized capital stock of any class, including preferred stock, shall not
require the consent of holders of the Series C Convertible Preferred Stock and
shall not be deemed to affect adversely the rights, preference or privileges of
shares of Series C Convertible Preferred Stock. Such right of the holders of
Series C Convertible Preferred Stock to vote as hereinabove provided may be
exercised at any annual meeting or at any special meeting called for such
purpose as hereinafter provided or at any adjournment thereof.

            (c) In any case in which the holders of Series C Convertible
Preferred Stock shall be entitled to vote pursuant to this Section 10 or
pursuant to Delaware law, each holder of Series C Convertible Preferred Stock
entitled to vote with respect to such matters shall be entitled to one vote for
each share of Series C Convertible Preferred Stock held.

            Section 11. Residual Rights. All rights accruing to the outstanding
shares of the Corporation not expressly provided for to the contrary herein
shall be vested in the Common Stock.

            Section 12. Preemptive Rights. The holders of the Series C
Convertible Preferred Stock are not entitled to any preemptive rights.

            Section 13. Outstanding Shares. All shares of Series C Convertible
Preferred Stock shall be deemed outstanding except: (i) from the date of
surrender of certificates representing shares of Series C Convertible Preferred
Stock for conversion into Common Stock, all shares of Series C Convertible
Preferred Stock converted into Common Stock; and (ii) from the date of
registration of transfer, all shares of Series C Convertible Preferred Stock
held of record by the Corporation or any subsidiary of the Corporation.

            Section 14. Definitions.

            (a) The term "Fair Market Value" on any date shall mean the average
of the closing sales price (or closing bid price if no sales prices are reported
on any given day) of the Common Stock as reported on The American Stock Exchange
("AMEX") (or such other exchange or quotation medium on which the Common Stock
is then traded) for the 10 consecu-tive trading days ending on the third trading
day preceding a Valuation Date. If the Common Stock is not quoted on the AMEX,
an exchange or other quotation medium, Fair Market Value shall be determined by
the Board of Directors of the Corporation. In the event of payment of dividends
in shares of Common Stock no fractional shares shall be issued but cash shall be
paid in lieu of the issuance of the fractional share based upon the Fair Market
Value of such fractional shares. If an event set forth in Section 6(g) which
results in an adjustment to the Closing Price, Floor Price and the Trigger Price
occurs during any period described above for determining Fair Market Value, the
closing sale price (or closing bid price) for any day prior to such event shall
be adjusted in accordance with Section 6(g).

                                      -9-
<PAGE>

            (b) The term "Majority Holders" means the holders of a majority of
the shares of Series C Convertible Preferred Stock.

            (c) The term "Valuation Date" for purposes of determining Fair
Market Value shall mean (i) the date on which the shares of Series C Convertible
Preferred Stock are surren-dered to the Corporation, together with a notice of
conversion, in the case of conversion of all of the shares of Series C
Convertible Preferred Stock, (ii) the tenth (10th) trading day after the
Corporation mails a notice of redemption, in the case of conversion (in whole or
in part) after the Corporation has mailed a notice of redemption in accordance
with Section 7 or (iii) the date of the Put Notice (defined in Section 9(b)), in
the case of an exercise of the Put (defined in Section 9(a)) by the Majority
Holders with respect to less than all of the shares of Series C Convertible
Preferred Stock in accordance with Section 9(b).

            IN WITNESS WHEREOF, Cross Media Marketing Corporation has caused
this certificate to be signed by Richard Kaufman, its President and Chief
Operating Officer this 2nd day of April 2003.

                                    CROSS MEDIA MARKETING CORPORATION

                                    By: /s/ Richard Kaufman
                                        ---------------------------------------
                                        Name: Richard Kaufman
                                        Title: President and Chief Operating
                                               Officer

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