Document:

FILED
IN THE OFFICE OF THE
  STATE OF NEVADA
                                  VSOURCE, INC.
AUG 15 2000
No. C6038-80               Certificate of Designation
    --------
/s/Dean Heller
DEAN HELLER SECRETARY OF STATE

                                  VSOURCE, INC.

                           Certificate of Designation

               Robert C. McShirley and Sandford T. Waddell, certify that:

     A.   They  are  the  duly  elected  and  acting  President  and  Secretary,
          respectively, of Vsource, Inc., a Nevada corporation (the "Company");

     B.   The following  resolution,  which sets forth the rights,  preferences,
          privileges and  restrictions of the Series 2-A  Convertible  Preferred
          Stock of the  Company  determined  by the  Board of  Directors  of the
          Company  in  accordance  with  the  authorization   contained  in  the
          Company's Articles of Incorporation,  as amended,  was duly adopted by
          the Board by unanimous written consent dated as of July 27, 2000:

               AUTHORIZATION OF SERIES 2-A CONVERTIBLE PREFERRED STOCK

               Resolved  that the  Board of  Directors  hereby  determines  that
          2,100,000  shares  of Class A  Preferred  Stock  shall  be  designated
          "Series  2-A  Convertible  Preferred  Stock" and that such  Series 2-A
          Convertible  Preferred  Stock  shall  have  the  rights,  preferences,
          privileges and restrictions hereinafter set forth:

               DESIGNATION  OF  SERIES  2-A  CONVERTIBLE  PREFERRED  STOCK

               1.   Designation.
                    ------------

               This  series  of Class A  Preferred  Stock  shall  be  designated
"Series 2-A Convertible  Preferred Stock," par value $0.01 per share("Series 2-A
Preferred").

               2.   Authorized Number.
                    ------------------

               The   number   of  authorized  shares  of  Series  2-A  Preferred
shall be two million  one  hundred  thousand  (2,100,000)  shares.

                                      -1-
<PAGE>
               3.   Dividends.
                    ----------

               The  holders  of  shares of Series 2-A Preferred Stock shall be
entitled to receive, out of any assets legally available therefor,  and when, as
and if declared by the Board of Directors,  noncumulative dividends in an amount
equal to eight  percent (8%) of the  Original  Issue Price  (defined  below) per
share annually. No dividend may be declared and paid upon shares of Common Stock
in any fiscal year of the Corporation  unless  dividends of eight percent of the
Original  Issue  Price  (defined  below)  per share has first  been paid upon or
declared  and set aside for  payment to the  holders of the shares of Series 2-A
Preferred Stock for such fiscal year of the Corporation. No undeclared or unpaid
dividend shall ever bear interest.

               4.   Liquidation Preference.
                    ------------------------

                    a. In the event of any  liquidation,  dissolution or winding
     up of the Corporation,  either voluntary or involuntary, each holder of the
     Series 2-A  Preferred  Stock shall be  entitled  to  receive,  prior and in
     preference to any distribution of any of the assets or surplus funds of the
     Corporation to the holders of the Common Stock by reason of their ownership
     thereof,  a  preference  amount  for each  outstanding  share of Series 2-A
     Preferred  Stock  held by such  holder  equal  to the sum of (A) the  price
     originally paid to the Corporation for that outstanding share of Series 2-A
     Preferred  Stock (the "Original Issue Price") at the same time and with the
     same  priority as the  payment to the  holders of the Series 1-A  Preferred
     Stock of $2.50 for each outstanding share of Series 1-A Preferred Stock and
     (B) an amount equal to declared but unpaid dividends on such share, if any,
     but only to the  extent of the  Company's  retained  earnings.  If upon the
     occurrence of such event, the assets and funds thus  distributed  among the
     holders  of the  Series 1-A  Preferred  Stock and the Series 2-A  Preferred
     Stock shall be  insufficient  to permit the payment to such  holders of the
     full preferential amount each such holder is entitled to receive,  then the
     entire  assets  and  funds  of  the  Corporation   legally   available  for
     distribution shall be distributed among such holders and the holders of the
     Series 1-A Preferred  Stock in proportion to the full  preferential  amount
     each such holder is otherwise entitled to receive.

                    b. After  payment to the holders of the Series 2-A Preferred
     Stock and the Series 1-A  Preferred  Stock of the amounts to which they are
     entitled to be paid prior and in preference to any  distribution  of any of
     the assets or surplus funds of the Corporation to the holders of the Common
     Stock by reason of their ownership thereof,  the remaining assets and funds
     of the Corporation  legally  available for  distribution,  if any, shall be
     distributed among the holders of the Common Stock, the Series 1-A Preferred
     Stock and the  Series 2-A  Preferred  Stock pro rata based on the number of
     shares of Common Stock held by each (assuming conversion of all such Series
     2-A  Preferred  Stock  pursuant to Paragraph 7 below and of all such Series
     1-A  Preferred  Stock  pursuant  to  Paragraph  7  of  the  Certificate  of
     Designation creating the Series 1-A Preferred Stock ).

                                      -2-
<PAGE>
                    c.  For   purposes  of  this   Section  4,  a   liquidation,
     dissolution  or  winding  up of  the  Corporation  shall  be  deemed  to be
     occasioned  by or to include  (i) the  acquisition  of the  Corporation  by
     another   entity  by  means  of  any   transaction  or  series  of  related
     transactions (including, without limitation, any reorganization,  merger or
     consolidation  but,  excluding  any  merger  effected  exclusively  for the
     purpose of changing the domicile of the Corporation), or (ii) a sale of all
     or  substantially  all  of  the  assets  of  the  Corporation;  unless  the
     Corporation's  shareholders of record as constituted  immediately  prior to
     such acquisition or sale will,  immediately  after such acquisition or sale
     (by virtue of  securities  issued as  consideration  for the  Corporation's
     acquisition  or sale or  otherwise)  hold a majority of the voting power of
     the  surviving  or  acquiring  entity.  In  any  of  such  events,  if  the
     consideration  received by the Corporation received is other than cash, its
     value will be deemed its fair market value. The fair market value of common
     stock which is publicly traded on an exchange or the NASDAQ National Market
     System or Small Cap Market shall be the average of the daily market  prices
     of that stock over the 20 consecutive  trading days  immediately  preceding
     (and not including) the date the  Corporation or its  shareholders  receive
     such stock.  The daily  market price for each trading day shall be: (A) the
     closing  price on that day on the  principal  exchange on which such common
     stock is then listed or admitted to trading or on NASDAQ, as applicable; or
     (B) if no sale takes  place on that day on such  exchange  or  NASDAQ,  the
     average  of the  official  closing  bid and asked  prices  for that  stock.
     Otherwise,  the fair market value of such consideration shall be determined
     in good  faith by the Board of  Directors  and  provided  in writing by the
     Corporation  to the holders of the Series 2-A  Preferred  Stock within five
     (5) days of the date of such  determination;  provided,  however,  that the
     fair market value of such consideration shall be determined by appraisal in
     accordance  with  the  following  provisions  if the  holders  of at  least
     two-thirds of then outstanding Series 2-A Preferred Stock object in writing
     to the Board of Director's determination within 15 days of their receipt of
     notice of such determination by the Board of Directors.  A single appraiser
     shall  selected  jointly by the  holders  of a  majority  of the Series 2-A
     Preferred  Stock and the  Corporation.  If the  holders  of the  Series 2-A
     Preferred  Stock and the  Corporation  are unable to agree on an  appraiser
     within twenty (20) days of the Board of Directors  receiving notice of such
     holders'  objection to the Board of  Directors'  determination,  each shall
     immediately  appoint an  appraiser  who shall  determine  such fair  market
     value.

                                      -3-
<PAGE>
     If the lower of the  appraised  fair market  values is not less than ninety
     percent (90%) of the higher  appraised  fair market  value,  the final fair
     market value of such  consideration  shall be the average of the  appraised
     values.  If the lower of the appraised  values is less than ninety  percent
     (90%) of the higher appraised values, the original appraisers shall appoint
     a final appraiser who shall pick one of the two prior values  determined by
     the first two appraisers. All appraisal reports shall be completed no later
     than sixty  (60) days after the  appointment  of the  appraiser  engaged to
     render such  appraisal.  All appraisal  fees and costs shall be paid by the
     Corporation;  provided,  however,  that if the final  appraised value is no
     more than ten percent (10%) higher than that  determined by the Board,  the
     appraisal  fees  and  costs  shall  be  subtracted   from  the  liquidation
     preference to be paid to the holders of the Series 2-A Preferred Stock.

          5.   Redemption.
               ------------

               a.   Redemption at the Option of the Corporation. The Corporation
                    -------------------------------------------
     shall not have the right to call or redeem  any  shares of the  Series  2-A
     Preferred Stock.

               b.   Redemption at the Option of the Holders.  The holders of the
                    ----------------------------------------
     Series  2-A  Preferred  Stock  shall  not have any  right  to  require  the
     Corporation  to redeem all or any part of the Series  2-A  Preferred  Stock
     held by them.

          6.     Voting Rights. The holder of each share of Series 2-A Preferred
                 ------------
Stock shall have the right to one vote for each share of Common Stock into which
such  Series  2-A  Preferred  Stock could then be converted (with any fractional
share  determined  on  an  aggregate  conversion basis being rounded down to the
nearest whole share), 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, notwithstanding any provision hereof, to
notice  of  any  shareholders'  meeting  in  accordance  with the by-laws of the
Company,  and  shall be entitled to vote, together with holders of Common Stock,
with  respect  to any question upon which holders of Common Stock have the right
to  vote.

           7.     Conversion.
                  ------------

          The holders of the Series 2-A  Preferred  Stock shall have  conversion
rights as follows (the "Conversion  Rights"):

               a. Right to  Convert.  Each share of Series 2-A  Preferred  Stock
                  ----------------
     shall be  convertible,  at the  option of the holder  thereof,  at any time
     after the date of issuance of such share,  at the office of the Corporation
     or any  transfer  agent for such stock,  into such number of fully paid and
     nonassessable  shares of Common  Stock as is  determined  by  dividing  the
     Original Issue Price by the then applicable Conversion Price, determined as
     hereinafter provided, in effect on the date the certificate evidencing such
     share is surrendered for conversion.

                                      -4-
<PAGE>
     The initial  Conversion Price per share for Series 2-A Preferred Stock (the
     "Conversion  Price")  shall  be the  Original  Issue  Price.  Such  initial
     Conversion Price shall be adjusted as hereinafter provided.

               b. Automatic Conversion. Each share of Series 2-A Preferred Stock
                  --------------------
     shall  automatically  be converted  into shares of Common Stock at the then
     effective  Conversion Price as provided in Section 7.a. above,  immediately
     upon the closing of a public  offering of the  Corporation's  Common  Stock
     with aggregate gross proceeds of at least $20,000,000 and a per share price
     to the public of at least Thirteen Dollars ($13.00),  or at the election of
     the holders of a majority of the outstanding shares of Series 2-A Preferred
     Stock.

               c.  Mechanics  of  Conversion.  Before  any  holder of Series 2-A
                  -----------------------------
     Preferred Stock shall be entitled to convert the same into shares of Common
     Stock, such holder shall surrender the certificate or certificates thereof,
     duly  endorsed,  at the office of the  Corporation or of any transfer agent
     for such stock,  and shall give written  notice to the  Corporation at such
     office  that it elects to  convert  the same and shall  state  therein  the
     number of shares to be  converted  and the name or names in which it wishes
     the  certificate or  certificates  for shares of Common Stock to be issued.
     The Corporation shall, as soon as practicable thereafter, issue and deliver
     at such office to such holder a certificate or certificates  for the number
     of shares of Common  Stock to which such  holder  shall be  entitled.  Such
     conversion shall be deemed to have been made immediately prior to the close
     of business on the date of surrender of the shares of Series 2-A  Preferred
     Stock to be  converted,  and 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
     on such date.

               d. Conversion  Price  Adjustments.  The Conversion Price shall be
                  -------------------------------
     subject to the following adjustments:

                    (1)  Adjustment  for Stock Splits and  Combinations.  If the
                         ----------------------------------------------
          Corporation  at any time or from time to time after the first issuance
          of  Series  2-A  Preferred  Stock  (the  "Purchase  Date")  effects  a
          subdivision  of the  outstanding  Common  Stock,  by  stock  split  or
          otherwise, the Conversion Price then in effect immediately before that
          subdivision shall be proportionately  decreased;  and, conversely,  if
          the  Corporation  at any time or from time to time after the  Purchase
          Date combines the outstanding shares of Common Stock, by reverse stock
          split or otherwise,  the Conversion  Price then in effect  immediately
          before that combination shall be proportionately increased.

                                      -5-
<PAGE>
          Any adjustment  under this Section d(1) shall become  effective at the
          close of business on the date the  subdivision or combination  becomes
          effective.

                    (2) Adjustment for Certain Dividends and  Distributions.  In
                        ---------------------------------------------------
          the event the  Corporation  at any time or from time to time after the
          Purchase  Date  either   makes,   or  fixes  a  record  date  for  the
          determination  of holders  of Common  Stock  entitled  to  receive,  a
          dividend or other distribution  payable in additional shares of Common
          Stock, then and in each such event the Conversion Price then in effect
          shall be  decreased  as of the time of such  issuance or, in the event
          such a record  date is  fixed,  as of the  close of  business  on such
          record date, by multiplying  the Conversion  Price then in effect by a
          fraction  (1) the  numerator of which is the total number of shares of
          Common Stock issued and outstanding  immediately  prior to the time of
          such  issuance on the close of business on such record  date,  and (2)
          the  denominator  of which shall be (i) the total  number of shares of
          Common Stock issued and outstanding  immediately  prior to the time of
          such  issuance  or the close of business on such record date plus (ii)
          the  number of shares of Common  Stock  issuable  in  payment  of such
          dividend or distribution;  provided, however, that if such record date
          is fixed and such  dividend is not fully paid or if such  distribution
          is not fully made on the date fixed  therefor,  the  Conversion  Price
          shall be  recomputed  accordingly  as of the close of business on such
          record date or date fixed therefor and thereafter the Conversion Price
          shall be  adjusted  pursuant  to this  Section  d(2) as of the time of
          actual payment of such dividend or  distribution.  For purposes of the
          foregoing formula,  "the total number of shares of Common Stock issued
          and  outstanding"  on a particular date shall include shares of Common
          Stock issuable upon conversion of stock or securities convertible into
          Common Stock and the  exercise of warrants,  options or rights for the
          purchase of Common Stock which are outstanding on such date.

                    (3) Adjustments for Other  Dividends and  Distributions.  In
                        ---------------------------------------------------
          the event the  Corporation  at any time or from time to time after the
          Purchase Date makes, or fixes a record date for the  determination  of
          holders of Common  Stock  entitled  to  receive,  a dividend  or other
          distribution  payable  in  securities  of the  Corporation  other than
          shares of Common Stock, then and in each such event,

                                      -6-
<PAGE>
          provision  shall be made so that each  Holder of Series 2-A  Preferred
          Stock shall receive upon conversion thereof, in addition to the number
          of  shares  of  Common  Stock  receivable  thereupon,  the  amount  of
          securities  of the  Corporation  which it would have  received had the
          Holder's  shares of Series 2-A  Preferred  Stock been  converted  into
          Common  Stock  as of the  date of such  event  and had it  thereafter,
          during the period  from the date of such  event to and  including  the
          date  of  exercise,  retained  such  securities  receivable  by  it as
          aforesaid during such period,  subject to all other adjustments called
          for during such period under this Section 5 with respect to the rights
          of such Holder.

                    (4) Adjustment for  Recapitalization,  Reclassification,  or
                        ---------------------------------------------------
          Exchange.  If the Common Stock  issuable  upon the  conversion  of the
          Series 2-A  Preferred  Stock is changed  into the same or a  different
          number of shares of any class or classes of stock of the  Corporation,
          whether by recapitalization, reclassification or other exchange (other
          than a subdivision or combination of shares,  or a stock dividend or a
          reorganization,  merger, consolidation or sale of assets, provided for
          elsewhere  in this  Section d), then and in any such event each Holder
          of Series  2-A  Preferred  Stock  shall have the right  thereafter  to
          convert  the  Series 2-A  Preferred  Stock into the kind and amount of
          stock  and  other   securities  and  property   receivable  upon  such
          recapitalization, reclassification or other exchange by holders of the
          number of shares of Common  Stock  into  which the number of shares of
          Series 2-A  Preferred  Stock then by such  Holder  could be  converted
          immediately prior to such recapitalization,  reclassification or other
          exchange, all subject to further adjustment as provided herein.

                    (5)  Reorganizations,  Mergers,  Consolidations  or Sales of
                        ---------------------------------------------------
          Assets.  If at any  time or  from  time to  time  there  is a  capital
          reorganization  of the  Common  Stock  (other  than a  subdivision  or
          combination  of  shares  or a stock  dividend  or a  recapitalization,
          reclassification  or other exchange of shares,  provided for elsewhere
          in this  Section d) or a merger or  consolidation  of the  Corporation
          with or into another corporation,  or the sale of all or substantially
          all of the Corporation's  assets to any other person,  then, as a part
          of  such  capital  reorganization,   merger,  consolidation  or  sale,
          provision  shall  be  made so  that  each  Holder  of the  Series  2-A
          Preferred   Stock  shall   thereafter  be  entitled  to  receive  upon
          conversion of the Series 2-A  Preferred  Stock the number of shares of
          stock or other  securities or property of the  Corporation,  or of the
          successor  corporation  resulting  from such  capital  reorganization,
          merger,  consolidation  or sale,  to which a holder  of the  number of
          shares of Common Stock  deliverable upon such exercise would have been
          entitled on such  capital  reorganization,  merger,  consolidation  or
          sale.

                                      -7-
<PAGE>
          In  any  such  case,  appropriate  adjustment  shall  be  made  in the
          application  of the  provisions  of this Section d with respect to the
          rights of each Holder of Series 2-A Preferred  Stock after the capital
          reorganization,  merger,  consolidation  or sale to the end  that  the
          provisions  of  this  Section  d  (including   the  number  of  shares
          deliverable  upon conversion of the Series 2-A Preferred  Stock) shall
          continue  to be  applicable  after  that  event and shall be as nearly
          equivalent to the provisions hereof as may be practicable.

                    (6) Sale of Shares Below Conversion Price.
                        -------------------------------------

                         (a) If at any  time or from  time  to  time  after  the
               Purchase Date, the  Corporation  issues or sells, or is deemed by
               the express  provisions  of this  Section  d(6) to have issued or
               sold, Additional Shares of Common Stock (as hereinafter defined),
               other than as a dividend  or other  distribution  on any class of
               stock  as  provided  in  Section  d(2)  and  other  than  upon  a
               subdivision  or combination of shares of Common Stock as provided
               in Section d(1), for an Effective Price (as hereinafter  defined)
               less than the then existing  Conversion  Price,  then and in each
               such case the then existing Conversion Price shall be reduced, as
               of the opening of business on the date of such issue or sale,  to
               a price  determined by  multiplying  that  Conversion  Price by a
               fraction the numerator of which shall be (A) the number of shares
               of Common Stock  outstanding  at the close of business on the day
               next  preceding  the date of such  issue  or  sale,  plus (B) the
               number   of  shares  of   Common   Stock   which  the   aggregate
               consideration  received (or by the express  provisions  hereof is
               deemed to have been  received) by the  Corporation  for the total
               number  of  Additional  Shares of  Common  Stock so issued  would
               purchase at such Conversion  Price, plus (C) the number of shares
               of Common  Stock  underlying  Other  Securities  (as  hereinafter
               defined) and the  denominator of which shall be (X) the number of
               shares of Common  Stock  outstanding  at the close of business on
               the date of such  issue  after  giving  effect  to such  issue of
               Additional  Shares of Common Stock, plus (Y) the number of shares
               of Common Stock  underlying the Other  Securities at the close of
               business on the date of such issue or sale.

                                      -8-
<PAGE>
                         (b) For the purpose of making any  adjustment  required
               under  this  Section  d(6),  the  consideration  received  by the
               Corporation for any issue or sale of securities  shall (A) to the
               extent it  consists  of cash be  computed  at the  amount of cash
               received  by the  Corporation,  (B) to the extent it  consists of
               property  other than cash,  be computed at the fair value of that
               property as determined in accordance with the procedure set forth
               in Section 4.c.  above,  and (C) if  Additional  Shares of Common
               Stock,  Convertible Securities (as hereinafter defined) or rights
               or options to purchase either  Additional  Shares of Common Stock
               or Convertible  Securities are issued or sold together with other
               stock or  securities  or other  assets of the  Corporation  for a
               consideration  which covers  both,  be computed as the portion of
               the  consideration so received that may be reasonably  determined
               in good  faith by the Board to be  allocable  to such  Additional
               Shares  of  Common  Stock,  Convertible  Securities  or rights or
               options under the procedure set forth in Section 4.c. above.

                         (c) For the purpose of the  adjustment  required  under
               this Section d(6), if the Corporation  issues or sells any rights
               or  options  for the  purchase  of, or stock or other  securities
               convertible  into,   Additional  Shares  of  Common  Stock  (such
               convertible stock or securities being hereinafter  referred to as
               "Convertible  Securities")  and if the  Effective  Price  of such
               Additional  Shares  of Common  Stock is less than the  Conversion
               Price then in effect,  then in each case the Corporation shall be
               deemed to have issued at the time of the  issuance of such rights
               or  options  or  Convertible  Securities  the  maximum  number of
               Additional  Shares of Common  Stock  issuable  upon  exercise  or
               conversion  thereof and to have received as consideration for the
               issuance  of such shares an amount  equal to the total  amount of
               the  consideration,  if any,  received by the Corporation for the
               issuance  of such  rights or options or  Convertible  Securities,
               plus, in the case of such rights or options,  the minimum amounts
               of  consideration,  if any,  payable to the Corporation  upon the
               exercise  of  such  rights  or  options,  plus,  in the  case  of
               Convertible Securities, the minimum amounts of consideration,  if
               any,  payable to the  Corporation  (other than by cancellation of
               liabilities   or  obligations   evidenced  by  such   Convertible
               Securities) upon the conversion thereof. No further adjustment of
               the Conversion Price,  adjusted upon the issuance of such rights,
               options or Convertible  Securities,  shall be made as a result of
               the actual  issuance of Additional  Shares of Common Stock on the
               exercise of any such rights or options or the  conversion  of any
               such Convertible Securities.

                                      -9-
<PAGE>
               If  any  such  rights  or  options  or the  conversion  privilege
               represented  by any  such  Convertible  Securities  shall  expire
               without having been exercised, the Conversion Price adjusted upon
               the issuance of such rights,  options or  Convertible  Securities
               shall be readjusted to the Conversion Price which would have been
               in effect had an adjustment  been made on the basis that the only
               Additional  Shares of Common Stock so issued were the  Additional
               Shares of Common Stock,  if any,  actually  issued or sold on the
               exercise  of such  rights or options or rights of  conversion  of
               such Convertible Securities, and such Additional Shares of Common
               Stock, if any, were issued or sold for the consideration actually
               received  by  the  Corporation  upon  such  exercise,   plus  the
               consideration,  if any,  actually received by the Corporation for
               the  granting  of all such  rights  or  options,  whether  or not
               exercised, plus the consideration received for issuing or selling
               the  Convertible   Securities   actually   converted,   plus  the
               consideration,  if  any,  actually  received  by the  Corporation
               (other  than  by   cancellation  of  liabilities  or  obligations
               evidenced by such  Convertible  Securities)  on the conversion of
               such Convertible Securities.

                         (d) "Additional  Shares of Common Stock" shall mean all
               shares  of  Common  Stock  issued  by the  Corporation  after the
               Purchase Date, whether or not subsequently  reacquired or retired
               by the Corporation, other than: (A) shares of Common Stock issued
               upon  conversion of the Series 2-A  Preferred  Stock or any other
               options or  warrants or  convertible  securities  outstanding  or
               issuable  on the  Purchase  Date;  (B)  shares  of  Common  Stock
               issuable or issued to the directors, officers and employees of or
               consultants  to the  Corporation;  (C)  shares  of  Common  Stock
               issuable or issued as part of an acquisition  by the  Corporation
               of all of or  certain  assets  (including  technology  rights) or
               shares of another  company or entity whether  through a purchase,
               merger,  exchange,  reorganization  or the  like;  (D)  shares of
               Common Stock issuable or issued  pursuant to equipment  financing
               or  leasing  arrangements;  or  (E)  shares  issued  in a  public
               offering of the Corporation's  securities.  The "Effective Price"
               of  Additional  Shares of Common  Stock  shall mean the  quotient
               determined by dividing the total number of  Additional  Shares of
               Common  Stock  issued or sold,  or deemed to have been  issued or
               sold  by the  Corporation  under  this  Section  d(6),  into  the
               aggregate consideration received, or deemed to have been received
               by the  Corporation  for such issue under this Section d(6),  for
               such Additional Shares of Common Stock.  "Other  Securities" with
               respect to an issue or sale of Additional  Shares of Common Stock
               shall mean (i) preferred stock,  debentures and notes convertible
               into  Common  Stock,  and (ii)  options or  warrants  to purchase
               Common  Stock  at a price  that  is no  greater  than  95% of the
               Effective  Price of such  issue or sale of  Additional  Shares of
               Common Stock.

                                      -10-
<PAGE>
               The  "number  of  shares  of  Common   Stock   underlying   Other
               Securities" on a particular  date shall mean the number of shares
               of Common Stock issuable upon the exercise or conversion,  as the
               case may be, of such Other Securities at the close of business on
               such date but only to the extent  that the holders  thereof  have
               the fully  vested  legal right to exercise or convert  such Other
               Securities  on such date and to retain  the Common  Stock  issued
               upon such exercise or conversion.

                    (7) Upon the occurrence of each  adjustment or  readjustment
          of the Conversion Price, the Corporation at its expense shall promptly
          compute such  adjustment or  readjustment in accordance with the terms
          hereof, and shall prepare and furnish to the holders of the Series 2-A
          Preferred  Stock  a  certificate  setting  forth  such  adjustment  or
          readjustment   and  showing  in  detail  the  facts  upon  which  such
          adjustment or readjustment is based.

               e.     Notices of  Record Date. In the event of any taking by the
                      -----------------------
     Corporation  of a record of the holders of any class of securities  for the
     purpose of determining  the holders thereof who are entitled to receive any
     dividend (other than a cash dividend) or other  distribution,  any security
     or right convertible into or entitling the holder thereof to receive or any
     right to subscribe for,  purchase or otherwise  acquire any shares of stock
     of any class or any other  securities or property,  or to receive any other
     right,  the  Corporation  shall mail to each holder of Series 2-A Preferred
     Stock at least  twenty  (20) days prior to the date  specified  therein,  a
     notice  specifying the date on which any such record is to be taken for the
     purpose of such dividend,  distribution,  security or right, and the amount
     and character of such dividend, distribution, security or right.

               f. Reservation of Stock Issuable Upon Conversion. The Corporation
                  --------------------------------------------
     shall at all times  reserve and keep  available out of its  authorized  but
     unissued  shares of Common  Stock,  solely for the purpose of effecting the
     conversion of the shares of the Series 2-A Preferred Stock,  such number of
     its  shares of Common  Stock as shall  from time to time be  sufficient  to
     effect the conversion of all outstanding shares of the Series 2-A Preferred
     Stock and if at any time the number of  authorized  but unissued  shares of
     Common Stock shall not be sufficient  to effect the  conversion of all then
     outstanding  shares of the Series 2-A Preferred Stock, the Corporation will
     take such  corporate  action as may,  in the  opinion  of its  counsel,  be
     necessary to increase its authorized but unissued shares of Common Stock to
     such number of shares as shall be sufficient  for such purpose,  including,
     without  limitation,  engaging  in best  efforts  to obtain  the  requisite
     stockholder  approval  of any  necessary  amendment  to  this  Articles  of
     Incorporation.

                                      -11-
<PAGE>
               g. Fractional  Shares.  No fractional  share shall be issued upon
                  -----------------
     the  conversion of any share or shares of Series 2-A Preferred  Stock.  All
     shares  of  Common  Stock  (including   fractions  thereof)  issuable  upon
     conversion of more than one share of Series 2-A Preferred Stock by a holder
     thereof  shall be  aggregated  for  purposes  of  determining  whether  the
     conversion would result in the issuance of any fractional  share. If, after
     the  aforemen-tioned  aggregation,  the  conversion  would  result  in  the
     issuance of a fraction of a share of Common Stock,  the Corporation  shall,
     in lieu of issuing any fractional share, pay the holder otherwise  entitled
     to such  fraction  a sum in cash  equal  to the fair  market  value of such
     fraction  on the date of  conversion  (determined  as  provided  in Section
     5.c.).

               h. Notices. Any notice required by the provisions of this Section
                  -------
     5 to be given to the holders of shares of Series 2-A Preferred  Stock shall
     be deemed given if deposited in the United  States mail,  postage  prepaid,
     return  receipt  requested,  and  addressed to each holder of record at his
     address appearing on the books of the Corporation.

          8.   Amendment.
               ----------

          Any term relating to the Series 2-A Preferred Stock may be amended and
the  observance of any term  relating to the Series 2-A  Preferred  Stock may be
waived  (either  generally  or in a particular  instance)  only with the vote or
written consent of holders of a majority of the outstanding shares of the Series
2-A  Preferred  Stock.  Any  amendment  so  effected  shall be binding  upon the
Corporation and any holder of the Series 2-A Preferred Stock.

          9.    Restrictions  and  Limitations.
                -------------------------------

          So  long  as  any  shares  of  Series  2-A   Preferred   Stock  remain
outstanding,  the Corporation  shall not, without the vote or written consent by
the  holders of a majority  of the  outstanding  shares of Series 2-A  Preferred
Stock, voting together as a single class:

               a.  Increase or decrease  (other  than by  conversion)  the total
     number of authorized shares of Series 2-A Preferred Stock; or

                                      -12-
<PAGE>
               b. Amend the  Articles of  Incorporation  of the  Corporation  to
     change the rights,  preferences,  privileges  or  limitations of the Series
     2-A Preferred Stock.

          10.     No  Reissuance  of  Series  2-A  Preferred  Stock.
                  --------------------------------------------------

          No share or shares of  Series  2-A  Preferred  Stock  acquired  by the
Corporation by reason of redemption,  purchase, conversion or otherwise shall be
reissued,  and all such shares  shall be returned to the status of  undesignated
shares of Preferred Stock.

          11.     Residual  Rights.
                  -----------------

          Holders  of  shares of  Series  2-A  Preferred  Stock  shall  not have
any pre-emptive  rights.  All  rights  accruing  o the outstanding shares of the
Company not expressly provided for to the contrary herein shall be vested in the
Common  Stock.

C.     That the number of shares of Series 2-A Preferred Stock is 2,100,000; and

D.     That  none  of such shares of Series 2-A Preferred Stock has been issued.

                                      -13-
<PAGE>
     IN WITNESS WHEREOF Vsource, Inc. has caused this certificate to be executed
by Robert C. McShirley, its President and Sandford T. Waddell, its Secretary, on
the  date  set  forth  below.

Dated:  7/27,  2000
        ----

                                             /s/ Robert  C.  McShirley
                                             -----------------------------------
                                             Robert  C.  McShirley,  President

                                             /s/ Sandford  T.  Waddell
                                             -----------------------------------
                                             Sandford  T.  Waddell,  Secretary

STATE  OF        California      )
            ---------------------
                                 )  ss:
COUNTY  OF        Ventura        )
            ---------------------

     On                                   personally  appeared  before  me,  a
       ----------------------------------
Notary Public, Robert C.  McShirley  and  Sandford T. Waddell, who acknowledged
              ----------------------     --------------------
that  they  executed  the  above  instrument.

                                                    /s/ Sylvia Lazaris
                                             -----------------------------------
(SEAL)                                                 Notary  Public

<PAGE>
CALIFORNIA  ALL-PURPOSE  ACKNOWLEDGMENT
================================================================================

     State  of  Califormia          }
                                    }  SS
     County  of  Ventura            }

On July 27, 2000, before me, Sylvia Lazaris, Notary personally appeard Robert C.
   -------------             ----------------------                    ---------
McShirley  &  Sandford  T.  Waddell
-----------------------------------

                           [ ] personally  known  to  me
                           [X] proved  to  me  on  the  basis  of  satisfactory
                               evidence

                               to  be  the  person(s)  whose  name(s)  is/are
                               subscribed  to  the  within  instrument  and
                               acknowledged to me that they executed the same
                               in  their  authorizedcapacity(ies), and that by
                               their  signature(s)  on  the  instrument  the
                               person(s) or entity upon behalf of which the
                               person(s) acted,

    [SEAL]                     WITNESS  my  hand  and  official  seal

                               /s/ Sylvia Lazaris
                               -----------------------------------
                                  signature  of  Notary  Public

                                      -14-
<PAGE>FILED C60038-80
                                                                      ----------
                                                                   SEP 07 2000

                                  VSOURCE, INC.

                        Amended Certificate of Designation

     Robert  C.  McShirley  and  Sandford  T.  Waddell,  certify  that:

     A.   They  are  the  duly  elected  and  acting  President  and  Secretary,
          respectively, of Vsource, Inc., a Nevada corporation (the "Company");

     B.   The following  resolution,  which sets forth the rights,  preferences,
          privileges and  restrictions of the Series 1-A  Convertible  Preferred
          Stock of the  Company,  was duly adopted by  the  Board  by  unanimous
          written consent dated as of August 28, 2000:
                                      ---------

     C.   Approval  by  holders  of a majority of the outstanding shares of  the
          Series 1-A  Preferred  Stock,  as  required by Sections 8 and 9 of the
          Certification of  Designation  creating the Series 1-A Preferrd  Stock
          And  by  Section 78.1955(3) of the  Nevada  General  Corporation  Law,
          has  been  obtained.

      D.  That Subparagraphs 4.a and  4.b  of  the  Series  1-A  Certificate  of
          Designation, filed  on  February  22, 2000, are hereby amended to read
          in their entirety as follows  and  except as hereby amended, all other
          provisions of the Series 1-A Certificate  of  Designation shall remain
          in full force and effect in accordance with  their  terms:

               4. Liquidation Preference.
                 -----------------------

                    a. In the event of any  liquidation,  dissolution or winding
          up of the Corporation, either voluntary or involuntary, each holder of
          the Series 1-A Preferred Stock shall be entitled to receive, prior and
          in  preference  to any  distribution  of any of the  assets or surplus
          funds of the  Corporation to the holders of the Common Stock by reason
          of their ownership  thereof,  a preference amount for each outstanding
          share they hold equal to the sum of:  (A)  the  price $2.50 originally
          paid for such  outstanding  share  of Series 1-A Preferred Stock  (the
          "Original Issue Price") and (B) an amount equal to declared but unpaid
          dividends on such share,  if  any,  but  only to  the  extent  of  the
          Company's  retained  earnings.  If  upon the occurrence of such event,
          the assets and  funds  thus  distributed  among  the  holders  of  the
          Series  1-A  Preferred  Stock and the Series 2-A Preferred Stock shall
          be  insufficient  to permit the payment to such  holders  of  the full
          preferential  amount each such holder is entitled to receive, then the
          entire  assets  and  funds of the  Corporation  legally  available for
          distribution  shall be distributed  among such holders and the holders
          of  the  Series  1-A  Preferred  Stock  in  proportion  to  the  full
          preferential  amount  each  such  holder  is  otherwise  entitled  to
          receive.

                                      -1-
<PAGE>
                    b. After  payment to the holders of the Series 1-A Preferred
          Stock and the Series 2-A Preferred  Stock of the amounts to which they
          are entitled to be paid prior and in preference to any distribution of
          any of the assets or surplus funds of the  Corporation  to the holders
          of the  Common  Stock  by  reason  of  their  ownership  thereof,  the
          remaining  assets and funds of the Corporation  legally  available for
          distribution,  if any, shall be  distributed  among the holders of the
          Common  Stock,  the  Series  1-A  Preferred  Stock and the  Series 2-A
          Preferred Stock pro rata based on the number of shares of Common Stock
          held by each  (assuming  conversion  of all such Series 1-A  Preferred
          Stock  pursuant  to  Paragraph  7 below  and of all  such  Series  2-A
          Preferred  Stock  pursuant  to  Paragraph  7  of  the  Certificate  of
          Designation creating the Series 2-A Preferred Stock ).

                                      -2-
<PAGE>
     IN WITNESS WHEREOF Vsource, Inc. has caused this certificate to be executed
by Robert C. McShirley, its President and Sandford T. Waddell, its Secretary, on
the  date  set  forth  below.

Dated:  August 28,  2000
        ---------

                                            /s/ Robert  C.  McShirley
                                            -----------------------------------
                                            Robert  C.  McShirley,  President

                                            /s/ Sandford  T.  Waddell
                                            -----------------------------------
                                            Sandford  T.  Waddell,  Secretary

STATE  OF        California      )
            ---------------------
                                 )  ss:
COUNTY  OF        Ventura        )
            ---------------------

     On  August  28,  2000  personally  appeared  before  me,  a  Notary Public,
         -----------------
Robert  C.  McShirley  and  Sandford  T. Waddell,  who  acknowledged  that  they
---------------------       --------------------
executed  the  above  instrument.

                                                  /s/ Carlene Ackley
(SEAL)                                            ------------------
                                                  Notary  Public

                                      -3-
<PAGE>
     Robert  C.  McShirley  and  Sandford  T.  Waddell,  certify  that:

          A.   They are the duly  elected and acting  President  and  Secretary,
               respectively,   of  Vsource,  Inc.,  a  Nevada  corporation  (the
               "Company");

          B.   The   following   resolution,   which  sets  forth  the   rights,
               preferences,  privileges  and  restrictions  of  the  Series  2-A
               Convertible  Preferred  Stock of the  Company  determined  by the
               Board  of  Directors  of  the  Company  in  accordance  with  the
               authorization    contained   in   the   Company's   Articles   of
               Incorporation,  as  amended,  was duly  adopted  by the  Board by
               unanimous written consent dated as of July 27, 2000:

<PAGE>
     IN WITNESS WHEREOF Vsource, Inc. has caused this certificate to be executed
by Robert C. McShirley, its President and Sandford T. Waddell, its Secretary, on
the  date  set  forth  below.

----------------------------------OPTIONAL--------------------------------------

   Though the information below is not required by law, it may prove valuable to
      persons relying on th document and could prevent fraudulent removal and
                 reattachment of this form to another document.

Description  of  Attached  Document
Title  or  Type  of  Document:  Certificate  of  Designation
                                ----------------------------

Document  Date:  07-22-2000
                 ----------

Signer(s)  Other  Than  Named  Above:  None
                                       ----

<PAGE>

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