Document:

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                                                                   EXHIBIT 10.14

                           INDEMNIFICATION AGREEMENT

               THIS INDEMNIFICATION AGREEMENT (this "Agreement") is made and
entered into this __ day of __________, 2001, by and between WebGain, Inc. a
Delaware corporation (the "Company"), and <<Name>> ("Indemnitee").

               WHEREAS, Indemnitee, a member of the board of directors or an
officer, employee or agent of the Company, performs a valuable service in such
capacity for the Company;

               WHEREAS, the stockholders of the Company have adopted bylaws (the
"Bylaws") providing for the indemnification of the officers, directors,
employees and agents of the Company to the maximum extent authorized by Section
145 of the Delaware General Corporations Law, as amended (the "Code");

               WHEREAS, the Bylaws and the Code, by their non-exclusive nature,
permit contracts between the Company and the members of its directors, officers,
employees or agents with respect to indemnification of such directors, officers,
employees or agents;

               WHEREAS, in accordance with the authorization as provided by the
Code, the Company either has purchased and presently maintains or intends to
purchase and maintain a policy or policies of Directors and Officers Liability
Insurance ("D&O Insurance") covering certain liabilities which may be incurred
by its directors, officers, employees or agents in the performance of their
duties as directors and officers of the Company;

               WHEREAS, as a result of developments affecting the terms, scope
and availability of D&O Insurance there exists general uncertainty as to the
extent of protection afforded its directors, officers, employees or agents by
such D&O Insurance and by statutory and bylaw indemnification provisions; and

               WHEREAS, in order to induce Indemnitee to continue to serve as a
director, officer, employee or agent of the Company, the Company has determined
and agreed to enter into this contract with Indemnitee.

               NOW, THEREFORE, in consideration of Indemnitee's continued
service as a director, officer, employee or agent after the date hereof, and for
other good and valid consideration, the receipt and adequacy of which is hereby
acknowledged, the parties hereto agree as follows:

               1. Indemnification of Indemnitee. The Company hereby agrees to
hold harmless and indemnify Indemnitee to the fullest extent authorized or
permitted by the provisions of the Code, as may be amended from time to time.

               2. Additional Indemnity. Subject only to the exclusions set forth
in Sections 3 and 6(c) hereof, the Company hereby further agrees to hold
harmless and indemnify Indemnitee:

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                      (a) against any and all expenses (including attorneys'
fees), witness fees, judgments, fines and amounts paid in settlement actually
and reasonably incurred by Indemnitee in connection with any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative
or investigative (including an action by or in the right of the Company) to
which Indemnitee is, was or at any time becomes a party, or is threatened to be
made a party, by reason of the fact that Indemnitee is, was or at any time
becomes a director, officer, employee or agent of the Company or any subsidiary
of the Company, or is or was serving or at any time serves at the request of the
Company as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise;
and

                      (b) otherwise to the fullest extent as may be provided to
Indemnitee by the Company under the non-exclusivity provisions of the Bylaws and
the Code.

               3. Limitations on Additional Indemnity.

                      (a) No indemnity pursuant to Section 2 hereof shall be
paid by the Company:

                          (i) in respect to remuneration paid to Indemnitee if
it shall be determined by a final judgment or other final adjudication that such
remuneration was in violation of law;

                          (ii) on account of any suit in which judgment is
rendered against Indemnitee for an accounting of profits made from the purchase
or sale by Indemnitee of securities of the Company pursuant to the provisions of
Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar
provisions of any federal, state or local statutory law;

                          (iii) on account of Indemnitee's conduct which is
finally adjudged to have been knowingly fraudulent or deliberately dishonest or
to constitute willful misconduct;

                          (iv) on account of Indemnitee's conduct which is the
subject of an action, suit or proceeding described in Section 6(c)(ii) hereof;

                          (v) on account of any action, claim or proceeding
(other than a proceeding referred to in Section 7(b) hereof) initiated by the
Indemnitee unless such action, claim or proceeding was authorized in the
specific case by action of the board of directors;

                          (vi) if a final decision by a court having
jurisdiction in the matter shall determine that such indemnification is not
lawful (and, in this respect, both the Company and Indemnitee have been advised
that the Securities and Exchange Commission believes that indemnification for
liabilities arising under the federal securities laws is against public policy
and is, therefore, unenforceable and that claims for indemnification should be
submitted to appropriate courts for adjudication); and

                          (vii) except to the extent the aggregate of losses to
be indemnified thereunder exceeds the sum of (a) such losses for which the
Indemnitee is indemnified pursuant

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to Section 1 hereof and (b) any additional amount paid to the Indemnitee
pursuant to any D&O Insurance purchased and maintained by the Company.

                      (b) No indemnity pursuant to Section 1 or 2 hereof shall
be paid by the Company if the action, suit or proceeding with respect to which a
claim for indemnity hereunder is made arose from or is based upon any of the
following:

                          (i) Any solicitation of proxies by Indemnitee, or by a
group of which he was or became a member consisting of two or more persons that
had agreed (whether formally or informally and whether or not in writing) to act
together for the purpose of soliciting proxies, in opposition to any
solicitation of proxies approved by the board of directors.

                          (ii) Any activities by Indemnitee that constitute a
breach of or default under any agreement between Indemnitee and the Company.

               4. Contribution. If the indemnification provided in Sections 1
and 2 hereof is unavailable by reason of a court decision described in Section
3(a)(vi) hereof based on grounds other than any of those set forth in paragraphs
(i) through (v) of Section 3(a) hereof, then in respect of any threatened,
pending or completed action, suit or proceeding in which the Company is jointly
liable with Indemnitee (or would be if joined in such action, suit or
proceeding), the Company shall contribute to the amount of expenses (including
attorneys' fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred and paid or payable by Indemnitee in such proportion as is
appropriate to reflect (a) the relative benefits received by the Company, on the
one hand, and Indemnitee, on the other hand, from the transaction from which
such action, suit or proceeding arose, and (b) the relative fault of the
Company, on the one hand, and of Indemnitee, on the other, in connection with
the events which resulted in such expenses, judgments, fines or settlement
amounts, as well as any other relevant equitable considerations. The relative
fault of the Company, on the one hand, and of Indemnitee, on the other, shall be
determined by reference to, among other things, the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent the
circumstances resulting in such expenses, judgments, fines or settlement
amounts. The Company agrees that it would not be just and equitable if
contribution pursuant to this Section 4 were determined by pro rata allocation
or any other method of allocation which does not take account of the foregoing
equitable considerations.

               5. Notification and Defense of Claim. Not later than thirty (30)
days after receipt by Indemnitee of notice of the commencement of any action,
suit or proceeding, Indemnitee shall, if a claim in respect thereof is to be
made against the Company under this Agreement, notify the Company of the
commencement thereof; but Indemnitee's omission so to notify the Company will
not relieve the Company from any liability which it may have to Indemnitee
otherwise than under this Agreement. With respect to any such action, suit or
proceeding as to which Indemnitee notifies the Company of the commencement
thereof:

                      (a) The Company will be entitled to participate therein at
its own expense.

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                      (b) Except as otherwise provided below, to the extent that
it may wish, the Company shall, jointly with any other indemnifying party
similarly notified, be entitled to assume the defense thereof, with counsel
reasonably satisfactory to Indemnitee. After notice from the Company to
Indemnitee of its election to assume the defense thereof, the Company will not
be liable to Indemnitee under this Agreement for any legal or other expenses
subsequently incurred by Indemnitee in connection with the defense thereof,
other than reasonable costs of investigation or as otherwise provided below.
Indemnitee shall have the right to employ its own counsel in such action, suit
or proceeding, but the fees and expenses of such counsel incurred after notice
from the Company of the Company's assumption of the defense thereof shall be at
the expense of Indemnitee unless (i) the employment of counsel by Indemnitee has
been authorized by the Company, (ii) Indemnitee shall have reasonably concluded
that there may be a conflict of interest between the Company and Indemnitee in
the conduct of the defense of such action, or (iii) the Company shall not in
fact have employed counsel to assume the defense of such action; in each of
which cases the fees and expenses of Indemnitee's separate counsel shall be paid
by the Company. The Company shall not be entitled to assume the defense of any
action, suit or proceeding brought by or on behalf of the Company or as to which
Indemnitee shall have made the conclusion provided for in clause (ii) above.

                      (c) The Company shall not be liable to indemnify
Indemnitee under this Agreement for any amounts paid in settlement of any action
or claim effected without its written consent. The Company shall be permitted to
settle any action except that it shall not settle any action or claim in any
manner which would impose any penalty or limitation on Indemnitee without
Indemnitee's written consent. Neither the Company nor Indemnitee will
unreasonably withhold its consent to any proposed settlement.

               6. Advancement and Repayment of Expenses.

                      (a) In the event that Indemnitee employs his or her own
counsel pursuant to Sections 5(b)(i) through (iii) above, the Company shall
advance to Indemnitee, prior to any final disposition of any threatened or
pending action, suit or proceeding, whether civil, criminal, administrative or
investigative, any and all reasonable expenses (including legal fees and
expenses) incurred in investigating or defending any such action, suit or
proceeding within ten (10) days after receiving from Indemnitee copies of
invoices presented to Indemnitee for such expenses.

                      (b) Indemnitee agrees that Indemnitee will reimburse the
Company for all reasonable expenses paid by the Company in investigating or
defending any civil or criminal action, suit or proceeding against Indemnitee in
the event and only to the extent it shall be ultimately determined by a final
judicial decision (from which there is no right of appeal) that Indemnitee is
not entitled, under the provisions of the Code, the Bylaws, this Agreement or
otherwise, to be indemnified by the Company for such expenses.

                      (c) Notwithstanding the foregoing, the Company shall not
be required to advance such expenses to Indemnitee in respect of any action
arising from or based upon any of the matters set forth in subsection (b) of
Section 3 or if Indemnitee (i) commences any action, suit or proceeding as a
plaintiff unless such advance is specifically approved by a majority of the
board of directors or (ii) is a party to an action, suit or proceeding brought
by the Company and

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approved by a majority of the board of directors which alleges willful
misappropriation of corporate assets by Indemnitee, disclosure of confidential
information in violation of Indemnitee's fiduciary or contractual obligations to
the Company, or any other willful and deliberate breach in bad faith of
Indemnitee's duty to the Company or its stockholders.

               7.     Enforcement.

                      (a) The Company expressly confirms and agrees that it has
entered into this Agreement and assumed the obligations imposed on the Company
hereby in order to induce Indemnitee to continue as a director, officer,
employee or other agent of the Company, and acknowledges that Indemnitee is
relying upon this Agreement in continuing in such capacity.

                      (b) In the event Indemnitee is required to bring any
action to enforce rights or to collect moneys due under this Agreement and is
successful in such action, the Company shall reimburse Indemnitee for all
Indemnitee's reasonable fees and expenses, including attorney's fees, in
bringing and pursuing such action.

               8. Subrogation. In the event of payment under this agreement, the
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all documents required and shall do
all acts that may be necessary to secure such rights and to enable the Company
effectively to bring suit to enforce such rights.

               9. Continuation of Obligations. All agreements and obligations of
the Company contained herein shall commence upon the date that Indemnitee first
became a director, officer, employee or agent of the Company, as the case may
be, and shall continue during the period Indemnitee is a director, officer,
employee or agent of the Company (or is or was serving at the request of the
Company as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise)
and shall continue thereafter so long as Indemnitee shall be subject to any
possible claim or threatened, pending or completed action, suit or proceeding,
whether civil, criminal or investigative, by reason of the fact that Indemnitee
was a director, officer, employee or agent of the Company or serving in any
other capacity referred to herein.

               10. Survival of Rights. The rights conferred on Indemnitee by
this Agreement shall continue after Indemnitee has ceased to be a director,
officer, employee or other agent of the Company and shall inure to the benefit
of Indemnitee's heirs, executors and administrators.

               11. Non-Exclusivity of Rights. The rights conferred on Indemnitee
by this Agreement shall not be exclusive of any other right which Indemnitee may
have or hereafter acquire under any statute, provision of the Company's
Certificate of Incorporation or Bylaws, agreement, vote of stockholders or
directors, or otherwise, both as to action in his official capacity and as to
action in another capacity while holding office; provided, however, that this
Agreement shall supersede and replace any prior indemnification agreements
entered into by and between the Company and Indemnitee and that any such prior
indemnification agreement shall be terminated upon the execution of this
Agreement.

               12. Separability. Each of the provisions of this Agreement is a
separate and distinct agreement and independent of the others, so that if any or
all of the provisions hereof

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               shall be held to be invalid or unenforceable for any reason, such
invalidity or unenforceability shall not affect the validity or enforceability
of the other provisions hereof or the obligation of the Company to indemnify the
Indemnitee to the full extent provided by the Bylaws or the Code.

               13. Governing Law. This Agreement shall be interpreted and
enforced in accordance with the laws of the State of California.

               14. Binding Effect. This Agreement shall be binding upon
Indemnitee and upon the Company, its successors and assigns, and shall inure to
the benefit of Indemnitee, his or her heirs, personal representatives and
assigns and to the benefit of the Company, its successors and assigns.

               15. Amendment and Termination. No amendment, modification,
termination or cancellation of this Agreement shall be effective unless it is in
writing and is signed by both parties hereto.

                      (This space intentionally left blank)

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               IN WITNESS WHEREOF, the parties hereto have executed this
Agreement on date set forth above.

WEBGAIN, INC. a Delaware corporation              INDEMNITEE

By:                                              -------------------------------
        ------------------------------------     <<Name>>
Name:                                            <<Title>>
        ------------------------------------
Title:
--------------------------------------------
                                                  Address:
                                                          ----------------------
                                                          ----------------------3122001 Certificate of Designations

                                                      Exhibit 4.1

CERTIFICATE OF DESIGNATION, PREFERENCES AND RIGHTS

                                  OF

SERIES B CUMULATIVE CONVERTIBLE PREFERRED STOCK

Pursuant to Section 151(g) of the Delaware General Corporation Law,
I, Scott Broomfield, Chairman and Chief Executive Officer of CENTURA SOFTWARE
CORPORATION, a Delaware corporation (the "Corporation"), hereby certify
that the following is a true and correct copy of a resolution duly adopted by
the Corporation's Board of Directors by unanimous written consent on March 9,
2001 and that said resolution has not been rescinded or amended and is in full
force and effect at the date hereof:
RESOLVED, that pursuant to the authority expressly granted to and vested in
the Corporation's Board of Directors by the Certificate of Incorporation of the
Corporation, as amended to date, the Board of Directors hereby creates a series
of Preferred Stock of the Corporation, par value $.01 per share, to be
designated "Series B Cumulative Convertible Preferred Stock" (hereinafter
referred to as the "Preferred Stock") and to consist of eleven thousand
(11,000) shares, with an initial stated value of $1,000 per share (the
"Stated Value"), and hereby fixes the voting powers, designations,
preferences and relative, participating, optional or other rights, and the
qualifications, limitations or restrictions thereof, of the Preferred Stock, as
follows:

1.Dividends.  (a)  Each share of Preferred Stock shall be
entitled to receive, in preference to the holders of Junior Securities (as
defined herein), cumulative annual dividends at the rate of 4.5% per annum on
the Aggregate Value (as defined herein) thereof.  Such dividends shall be due
and payable quarterly in arrears on the last day of March, June, September and
December of each year (each, a "Dividend Payment Date"), commencing on
March 31, 2001.  Dividends shall accumulate daily on each share of Preferred
Stock from the Issuance Date (as defined herein), whether or not earned or
declared, until such share of Preferred Stock has been converted or redeemed as
herein provided.  To the extent dividends are not paid on the applicable
Dividend Payment Date, such dividends shall be cumulative and shall compound
quarterly until the date of payment of such dividend.  The dividends so payable
will be paid to the person in whose name the applicable shares of Preferred
Stock (or one or more predecessor shares) are registered on the records of the
Company regarding registration and transfers of the Preferred Stock (the
"Preferred Stock Register"); provided, however, that the
Company's obligation to a transferee of a share of Preferred Stock arises only
if such transfer, sale or other disposition is made in accordance with the terms
and conditions hereof and the Subscription Agreement, dated as of the Issuance
Date, by and between the Company and the Subscriber set forth on the signature
pages thereof (the "Subscription Agreement").

(b)The dividends are payable in such coin or currency of the
United States of America as at the time of payment is legal tender, to the
person in whose name the applicable share(s) of Preferred Stock is duly
registered on the Preferred Stock Register (the "Holder") on the tenth
calendar day prior to the applicable Dividend Payment Date and at the address
last appearing on the Preferred Stock Register as designated in writing by such
Holder thereof from time to time; provided, however, that, in lieu
of paying such dividends in coin or currency, the Company may, at its option, in
full or in part, pay dividends on the shares of Preferred Stock on any Dividend
Payment Date by increasing the Aggregate Value of the Preferred Stock by the
amount of such dividend such that the sum of (i) the amount of such increase in
the Aggregate Value and (ii) the amount of cash dividend paid in part, if any,
is equal to the amount of the cash dividend which would otherwise be paid on
such Dividend Payment Date if such dividend were paid entirely in cash.  Any
such increase in the Aggregate Value (plus the amount of cash dividend, if any,
paid together therewith) shall constitute full payment of such dividend.  When
any dividend is added to the Aggregate Value, such dividend shall, for all
purposes of the Preferred Stock, be deemed to be part of the Aggregate Value for
purposes of determining dividends thereafter payable hereunder and amounts
thereafter convertible into Common Stock hereunder, and all references herein to
the Aggregate Value shall mean the Aggregate Value, as adjusted pursuant to
these provisions. 

(c)If the Company shall elect to pay any part of a dividend by
increasing the Aggregate Value as described in Paragraph 2(b), the Company will
provide notice setting forth the new Aggregate Value to each Holder (a
"Dividend Notice") on or prior to the applicable Dividend Payment Date.

(d)If the cash dividends due hereunder are not paid or the
Dividend Notice is not delivered to each Holder within ten (10) calendar days
after the applicable Dividend Payment Date, the Company shall no longer have the
right to choose the method by which dividends are paid, and each Holder may
elect either cash dividends or dividends payable by increasing the Aggregate
Value. 

(e)Except as specifically provided herein, an election by the
Company to pay dividends, in full or in part, in cash on any Dividend Payment
Date shall not preclude the Company from electing any other available
alternative in respect of all or any portion of any subsequent dividend. 

(f)Provided that the total Stated Value of all the then
outstanding shares of Preferred Stock is in excess of $500,000, no dividends,
including, without limitation, dividends or distributions paid in shares of, or
options, warrants or rights to subscribe for, or purchase shares of, equity
securities of the Company to which the Preferred Stock ranks prior (whether with
respect to dividends or upon liquidation, dissolution, winding up or otherwise),
including the Common Stock (collectively, the "Junior Securities") or on
parity (whether with respect to dividends or upon liquidation, dissolution,
winding up or otherwise) (collectively, the "Parity Securities"), shall
be declared or paid or set apart for payment or other distribution upon the
Junior Securities or the Parity Securities, nor shall any Junior Securities or
Parity Securities be redeemed, purchased or otherwise acquired for any
consideration (or any monies to be paid to, or made available for, a sinking
fund for the redemption of any shares of any such stock) by the Company,
directly or indirectly (except by conversion to, or exchange for, Junior
Securities or Parity Securities, respectively).

2.Preferred Rank.  (a)  All shares of Junior Securities
shall be of junior rank and subject to all shares of Preferred Stock in respect
of dividend rights and preferences as to distributions and payments upon the
liquidation, dissolution, winding up or otherwise of the Company. 

(b)Provided that the total Stated Value of all the then
outstanding shares of Preferred Stock is in excess of $500,000, the Company
shall not hereafter, without the prior express written consent of the Holders of
not less than two-thirds (2/3) of the then outstanding shares of Preferred
Stock, (i) issue any additional shares of Preferred Stock or reclassify any
existing capital stock of the Company into shares of Preferred Stock; (ii)
authorize or issue any capital stock that ranks senior to the Preferred Stock in
respect of dividend rights or the preferences as to distributions and payments
upon the liquidation, dissolution, winding up or otherwise of the Company, (iii)
authorize or issue any Parity Securities with terms and conditions more
favorable than the terms herein, or (iv) authorize or make any amendment to the
Company's Certificate of Incorporation or By-laws, or file any resolution of the
Board of Directors of the Company with the Secretary of State of the State of
Delaware containing any provisions, which, in the case of clause (iv), would
adversely affect or otherwise impair the rights or relative priority of the
Holders of the shares of Preferred Stock relative to the holders of Parity
Securities, the holders of Junior Securities or the holders of any other class
of capital stock.

(c)In the event of the merger, consolidation or other
business combination of the Company with or into another corporation, the
Preferred Stock shall maintain its relative powers, designations and preferences
provided for herein and no merger, consolidation or other business combination
shall result in a treatment that is inconsistent therewith. 

3.Transfers.  The shares of Preferred Stock have been
issued subject to investment representations of the original purchaser of such
shares and may be transferred or exchanged only in compliance with the
Securities Act of 1933, as amended (the "Act"), and applicable state
securities laws.  Prior to due presentment for transfer of each share of
Preferred Stock, the Company may treat the Holder as the owner thereof for the
purpose of receiving payments as herein provided and all other purposes, and the
Company shall not be affected by notice to the contrary. 

4.Definitions.  For purposes hereof the following
definitions shall apply: 

"Aggregate Value" shall mean for each share of Preferred Stock
the sum of (a) the Stated Value thereof, plus (b) accumulated but unpaid
dividends thereon (whether or not earned or declared). 

"Ceiling Price" shall mean (x) with respect to the Initial
Shares, $1.75 per share, (y) with respect to the Registration Shares, the
lower of (i) the simple average of the VWAP (as hereinafter defined) of the
Company's Common Stock during the Registration Shares Pricing Period and (ii)
the sum of (a) $1.75 and (b) fifty percent (50%) of the amount by which the
simple average of the VWAP of the Company's Common Stock during the Registration
Shares Pricing Period exceeds $1.75 and (z) with respect to the Subsequent
Shares, $2.00 per share;  provided, however, that if, at any time
after the Issuance Date (provided that the total Stated Value of all the then
outstanding shares of Preferred Stock is in excess of $500,000), the Company
offers, sells, contracts to sell or otherwise issues or agrees to issue any
Common Stock or Derivative Securities of the Company in a private placement
transaction (other than (i) pursuant to any stock or option or similar equity-
based compensation plan for employees, officers, directors or consultants or
(ii) up to 250,000 warrants in any twelve (12) month period on a cumulative
basis that are not compensatory in nature), with a maximum conversion or
exercise price per share of Common Stock of an amount less than the Ceiling
Price, then the "Ceiling Price" shall mean such lower conversion price or offer
price per share for the Preferred Stock not yet converted.  The Ceiling Price
and every constituent number thereof shall also be subject to adjustment from
time to time ratably for any events set forth in Paragraphs 6 and 10 hereof.

"Closing Price" shall mean the price of one share of Common
Stock determined as follows: 

(a)If the Common Stock is quoted on the Nasdaq National
Market, the closing bid price, as reported by Bloomberg, L.P. on the date of
valuation (or, if there is no closing bid price for such date, the most recent
previous closing bid price); 

(b)If the Common Stock is listed on a national securities
exchange, the last reported closing bid price on such exchange on the date of
valuation (or, if there is no last reported closing bid price on that date, the
most recent previous closing bid price); 

(c)If neither (a) nor (b) apply, but the Common Stock is
quoted in the over-the-counter market on the pink sheets or bulletin board, the
closing bid price on the date of valuation; and 

(d)If none of clause (a), (b) or (c) above applies, the
market value as determined by a nationally recognized investment banking firm or
other nationally recognized financial advisor retained in good faith by the
Board of Directors of the Company for such purpose, taking into consideration
among other factors, the earnings history, book value and prospects for the
Company, and the prices at which shares or Common Stock recently have been
traded.  Such determination shall be conclusive and binding on all persons. 

"Common Stock" shall mean the common stock, par value $0.01
per share, of the Company, and any stock into which such Common Stock may
hereafter be changed.

"Company-Directed Period" shall mean the period beginning on
the date which is ten (10) business days after the Registration Statement has
been declared effective by the SEC and ending on and including the date which is
five (5) months after the Issuance Date.

.

"Conversion Period Conversion Price" shall mean the lowest of
the daily weighted average trading prices on the Principal Market as reported by
Bloomberg, L.P. (on the VAP function) during the Valuation Period.  The maximum
Conversion Period Conversion Price is equal to the applicable Ceiling Price.

"Conversion Price" shall mean (a) the applicable Ceiling
Price, as the case may be, or (b) during any Company Election Conversion Period
or if the Company breaches or fails to comply with Section 5.19 of the
Subscription Agreement, an amount that is equal to the lesser of (i) the
applicable Ceiling Price, as the case may be, and (ii) the Conversion Period
Conversion Price, in each case, subject to adjustment as provided herein.

"Conversion Rate" shall mean the number of shares of Common
Stock issuable upon conversion of each share of Preferred Stock determined by
the application of the following formula where D equals the accumulated but
unpaid dividends (whether or not declared) for each share of Preferred Stock
(not previously added to the Stated Value pursuant to Paragraph 1 hereof) as of
the Holder Conversion Date (as defined in Paragraph 7): 

         Stated Value + D      

         Conversion Price

"Derivative Securities" shall mean securities of the Company
which are, directly or indirectly, convertible into or exercisable or
exchangeable for Common Stock.

"Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended.

"Initial Shares" shall mean the Two Thousand (2,000) shares of
Preferred Stock issuable pursuant to Section 1.1 of the Subscription
Agreement.

"Initial Issuance Date" shall mean March 9, 2001.

"Issuance Date" shall mean (a) with respect to the Initial
Shares, the Initial Issuance Date (b) with respect to the Registration Shares,
the Registration Shares Issuance Date and (c) with respect to the Subsequent
Shares, the Subsequent Issuance Date.

"Person" means and includes an individual, a partnership, a
joint venture, a corporation, a company, a limited liability company, a trust,
an unincorporated organization and a government or any department or agency
thereof.

"Principal Market" means The Nasdaq National Market, or if the
Common Stock is not traded on The Nasdaq National Market, then the principal
securities exchange or trading market for the Common Stock.

"Registration Rights Agreement" shall mean the Registration
Rights Agreement, dated as of the Issuance Date, by and between the Company and
the Purchasers named therein. 

"Registration Shares" shall mean the up to Three Thousand
(3,000) shares of Preferred Stock issuable pursuant to Section 1.1A of the
Subscription Agreement.

"Registration Shares Issuance Date" shall mean the date of
issuance of the Registration Shares.

"Registration Shares Pricing Period" shall mean

(a) if the Registration Shares Closing Date (as defined in the
Subscription Agreement) is the Target Closing Date (as defined in the
Subscription Agreement), the twenty (20) consecutive trading days immediately
preceding the Registration Shares Closing Date; or

(b) if the Registration Shares Closing Date is not the Target
Closing Date, the twenty (20) consecutive trading days that precede the
Registration Shares Closing Date by two (2) trading days.

"Registration Statement" shall mean the registration statement
on Form S-3 filed by the Company with the SEC to register the shares of Common
Stock issuable upon conversion of shares of Preferred Stock.

"SEC" shall mean the Securities and Exchange Commission and
any successor entity thereto. 

"Subsequent Issuance Date" shall mean the initial date of
issuance of the Subsequent Shares.

"Subsequent Shares" shall mean the up to Six Thousand (6,000)
shares of Preferred Stock issuable upon the exercise of the Call Option (as
defined in the Subscription Agreement) pursuant to Section 1.2 of the
Subscription Agreement.

"Triggering Event" means the occurrence of any of the
following events: 

(a)the Common Stock is either delisted or suspended from
trading on The Nasdaq National Market, The New York Stock Exchange, Inc. or The
American Stock Exchange, Inc. for a period of ten (10) consecutive trading days
(excluding disruptions from business announcements that result in any halt(s) in
trading of not more than one day on each occasion), and other than as a result
of the suspension of trading in securities on such market in general; or

(b)the Company is ineligible to use Form S-3 or is required
to use a different form of registration statement to register the shares of
Common Stock issuable upon conversion of shares of Preferred Stock with the SEC,
which shares of Common Stock are then required to be registered pursuant to the
terms of the Registration Rights Agreement; or

(c)(i) the failure of the Registration Statement to be
declared effective by the SEC on or prior to the date that is 150 days from the
Issuance Date, or (ii) while the Registration Statement is required to be
maintained effective pursuant to the terms of the Registration Rights Agreement,
the effectiveness of the Registration Statement lapses for any reason
(including, without limitation, the issuance of a stop order) or is unavailable
to the holder of the shares of Preferred Stock for sale of all of the
Registrable Securities (as defined in the Registration Rights Agreement) in
accordance with the terms of the Registration Rights Agreement, and such lapse
or unavailability continues for a period of ten (10) consecutive trading days or
for more than an aggregate of forty-five (45) trading days in any 365-day
period; or

(d)notice by the Company or by the Company's transfer agent
(which notice, in the case of the transfer agent, has not been revoked within
three (3) business days after notice to the Company) to any holder of shares of
Preferred Stock, including by way of public announcement, at any time, of its
intention not to comply with a request for conversion of any shares of Preferred
Stock into shares of Common Stock that are tendered in accordance with the
provisions of this Certificate of Designations; or

(e)a Conversion Default (as defined in Paragraph 12(b));
or

(f)the Company shall not have complied with Section 5.15 of
the Subscription Agreement or shall not have received the requisite shareholder
approval at the shareholder meeting contemplated by Section 5.15 of the
Subscription Agreement; or

(g)any uninsured money judgment not subject to further appeal
(including any arbitration award, but only if reduced to a judgment), writ or
warrant of attachment, or similar process in excess of Five Hundred Thousand
Dollars ($500,000) in the aggregate shall be entered or filed against the
Company, its subsidiaries or any of their properties or other assets and which
shall remain unpaid, unvacated, unbonded or unstayed for a period of sixty (60)
days or in any event later than ten (10) days prior to the date of any proposed
sale thereunder; or

(h)the Company shall not be in compliance with, or the
Company shall have breached any of the provisions of, this Certificate of
Designations, the Subscription Agreement, the Warrants, the Registration Rights
Agreement or any other document, certificate, agreement or other instrument
delivered in connection with the transactions contemplated hereby and thereby,
except in the case of a failure to comply with or a breach which is curable,
only if such failure to comply or breach continues for a period of at least ten
(10) days after notice to the Company.

"Valuation Period" shall mean the ten (10) trading days
immediately preceding and including the Holder Conversion Date (as defined
herein), subject to adjustment from time to time ratably for any events set
forth in Paragraph 10 hereof that occur during such ten (10) trading day
period. 

"VWAP" shall mean the daily volume weighted average price per
share (based on a trading day from 9:30 a.m. to 4:00 p.m., Eastern time) of the
Common Stock on the Nasdaq National Market (or any successor thereto) as
reported by Bloomberg Financial LP using the AQR function and eliminating any
Block Trades. 

5.Paragraph 5 Transactions. If at any time (i) there
occurs any merger, consolidation or other business combination of the Company,
with or into any other corporation, entity or person (whether or not the Company
is the surviving corporation) or there occurs any other corporate reorganization
or transaction or series of related transactions, and as a result thereof the
shareholders of the Company pursuant to such merger, consolidation,
reorganization or other transaction own in the aggregate less than 50% of the
voting power and common equity of the ultimate parent corporation or other
entity surviving or resulting from such merger, consolidation, reorganization or
other transaction, (ii) the Company transfers all or substantially all of the
Company's assets to another corporation or other entity or person in one or more
related transactions, or (iii) a purchase, tender or exchange offer is made to
and accepted by the holders of more than 50% of the outstanding shares of Common
Stock (each of the foregoing items (i) to (iii), a "Paragraph 5
Transaction"), then the Holders of the Preferred Stock then outstanding may
participate in any such transaction as a class with the common shareholders on
the same basis as if the Preferred Stock had been converted one day prior to the
announcement date (or record date for such distribution, dividend or offer) of
such transaction.  In the case of item (iii) above, the Company shall provide
written notice by facsimile to each Holder one (1) business day following the
effective date of the purchase, tender or exchange offer, and each Holder shall
have three (3) business days to elect to participate in such transaction by
providing written notice by facsimile to the Company.

6.Redemption

(a)Optional Redemption Upon a Paragraph 5 Transaction.  At the
option of each Holder, the Company shall redeem all or any portion of such
Holder's outstanding shares of Preferred Stock effective as of the effective
date of a Paragraph 5 Transaction, and the Holder shall be entitled to receive
on the specified redemption date a redemption price per share of Preferred Stock
being redeemed equal to 121% of the Aggregate Value at the effective date of the
Paragraph 5 Transaction.  Each Holder shall be entitled to make an election for
redemption by giving written notice, in the form of EXHIBIT 1 hereto (the
"Redemption Notice") by facsimile (with the original of such notice
forwarded with the foregoing courier) to the Company at such office to the
effect that such Holder elects to have redeemed the number of shares of
Preferred Stock (plus accumulated but unpaid dividends thereon, whether or not
earned or declared) specified therein, at any time up to five (5) days prior to
the effective date of any Paragraph 5 Transaction; provided,
however, at the discretion of such Holder, such Holder may, at any time,
elect to convert its shares of Preferred Stock into fully paid, validly issued
and nonassessable shares of Common Stock in accordance with the terms of
Paragraph 7 hereof, for such number of shares of Common Stock as determined by
the application of the Conversion Rate so long as the Company has not redeemed
such shares of Preferred Stock.

(b)Optional Redemption Upon a Triggering Event.  At the
option of each Holder, the Company shall redeem all or any portion of such
Holder's outstanding shares of Preferred Stock effective as of the date of the
occurrence of a Triggering Event, and the Holder shall be entitled to receive on
the specified redemption date a redemption price per share of Preferred Stock
being redeemed equal to 125% of the Aggregate Value as of the effective date of
the Triggering Event; provided, however, that if the Registration
Statement has not been declared effective by the SEC on or prior to the date
that is 150 days from the Issuance Date, the Holder shall be entitled to receive
on the specified redemption date accrued dividends plus a redemption price per
share of Preferred Stock being redeemed equal to 130% of the Aggregate Value as
of the effective date of the Triggering Event.  Each Holder shall be entitled to
make an election for redemption at any time following one (1) day after the
occurrence of a Triggering Event by giving the Redemption Notice by facsimile
(with the original of such notice forwarded with the foregoing courier) to the
Company at such office to the effect that such Holder elects to have redeemed
the number of shares of Preferred Stock specified therein; provided,
however, at the discretion of such Holder, such Holder may, at any time,
elect to convert its shares of Preferred Stock into fully paid, validly issued
and nonassessable shares of Common Stock in accordance with the terms of
Paragraph 7 hereof, for such number of shares of Common Stock as determined by
the application of the Conversion Rate so long as the Company has not redeemed
such shares of Preferred Stock.  If there is a Triggering Event pursuant to
subsection (f) of the definition of Triggering Event, this Paragraph 6(b) shall
only apply to the outstanding shares of Preferred Stock representing greater
than 19.99% of the outstanding Common Stock of the Company.  In addition to the
foregoing, upon the occurrence of a Triggering Event, the Holders shall have the
right to receive a 2.0% reduction in the Conversion Price of the Preferred Stock
for each thirty (30) day period (or part thereof) following a Triggering Event,
but in no event shall such reduction exceed 6.0%.

(c)Redemption at the Option of the Company.  Provided that
a Triggering Event has not occurred, the Company may, at its option, at any
time, redeem 100% of the outstanding shares of Preferred Stock at a redemption
price per share of Preferred Stock being redeemed equal to 121% of the Aggregate
Value as of the date upon which the redemption is to be made (the "Company
Redemption Price"); provided, however, at the discretion of
such Holder, such Holder may, at any time, elect to convert its shares of
Preferred Stock into fully paid, validly issued and nonassessable shares of
Common Stock in accordance with the terms of Paragraph 7 hereof, for such number
of shares of Common Stock as determined by the application of the Conversion
Rate so long as the Company has not redeemed such shares of Preferred Stock.  If
the Company redeems any shares of Preferred Stock pursuant to this Paragraph, it
must redeem all of the shares of Preferred Stock.  The Company shall give notice
of redemption in the form of EXHIBIT 2, pursuant to this Paragraph, signed on
behalf of the Company by its President to the holders of the shares of Preferred
Stock not less than forty-five (45) days prior to the date upon which the
redemption is to be made pursuant to this Paragraph (the "Company Redemption
Notice"), specifying (i) the Company Redemption Price, and (ii) the date of
such redemption.  The Company Redemption Notice having been so given, the amount
of the Company Redemption Price of the shares of Preferred Stock shall become
due and payable on the specified redemption date.

(d)Mechanics of Redemption.

(i)In order to redeem any shares of Preferred Stock (in whole
or in part), the applicable Holder shall surrender the stock certificate(s)
representing the shares of Preferred Stock to be redeemed, by either overnight
courier or two-day courier, to the principal office of the Company,
provided, however, that the Company shall not be obligated to pay
the applicable redemption price unless either the stock certificate(s)
evidencing the shares of Preferred Stock being redeemed is delivered to the
Company as provided above, or if the Holder notifies the Company that such
certificate(s) has been lost, stolen or destroyed, and follows such procedures
as are set forth in Paragraph 20.  If fewer than all the shares represented by
such certificate or certificates are to be redeemed, the Company shall issue and
deliver to or on the order of the holder thereof, at the expense of the Company,
a new certificate or certificates representing the unredeemed shares, to the
same extent as if the certificate theretofore representing such unredeemed
shares had not been surrendered on redemption.

(ii) The Company shall pay the applicable redemption price on
the date of redemption set forth on the Redemption Notice or Company Redemption
Notice and after receipt by the Company of such stock certificate(s) evidencing
the shares of Preferred Stock being redeemed, or after receipt of such agreement
and indemnification set forth in Paragraph 20, to such Holder, together with, if
appropriate, a stock certificate evidencing the number of shares of Preferred
Stock covered by the submitted stock certificate(s) not submitted for
redemption; provided that in the case where more than one Holder submits
shares of Preferred Stock for redemption simultaneously and the Company is
unable to redeem all shares of Preferred Stock submitted for such redemption,
the Company shall redeem an amount from each Holder equal to each Holder's pro
rata amount (based on the number of shares of Preferred Stock held by each
Holder relative to the number of shares of Preferred Stock outstanding) of all
shares of Preferred Stock being redeemed.

(iii) If the Company shall fail to redeem all of the shares
of Preferred Stock submitted for redemption, in addition to any remedy each
Holder may have under this Certificate of Designations, the Subscription
Agreement and the Registration Rights Agreement, the applicable redemption price
payable in respect of such unredeemed shares of Preferred Stock shall bear
interest at the rate of 2.0% for the first three thirty (30) day periods after
the required date of payment of the redemption price and 1.0% for each thirty
(30) day period thereafter (in each case, pro rated for partial periods) until
such redemption price is paid in full or the maximum rate permitted by law
(which amount shall be paid as liquidated damages and not as a penalty).  Until
the Company pays such unpaid redemption price in full to a Holder, such Holder
shall have the option, in lieu of redemption, but not in limitation of its
rights to receive interest as liquidated damages or any other remedy such Holder
may have under law, this Certificate of Designations, the Subscription Agreement
and the Registration Rights Agreement, to require the Company to promptly return
to such Holder all of the shares of Preferred Stock submitted for redemption by
such Holder and for which the applicable redemption price has not been paid, by
sending written notice thereof to the Company via facsimile (a "Revocation
Notice").  Upon the Company's receipt of such Revocation Notice and prior to
payment in full of the applicable redemption price to such Holder, (i) the
Redemption Notice shall be null and void with respect to those shares of
Preferred Stock submitted for redemption and for which the applicable redemption
price has not been paid, (ii) the Company shall immediately return any shares of
Preferred Stock submitted to the Company for redemption for which the applicable
redemption price has not been paid, and (iii) the Ceiling Price of those
returned shares shall be converted to the lesser of (A) the Ceiling Price prior
to the date of the Revocation Notice or (B) 90% of the Conversion Period
Conversion Price.  

(e)Notwithstanding the foregoing, in the event of a dispute
as to the determination of the calculation of the applicable redemption price,
the amount of the redemption price that is not in dispute shall be promptly paid
to the Holder in accordance with Paragraph 5(d)(i) hereof.  The Holder shall
then be entitled, within sixty (60) days of receipt of either the Redemption
Certificate or Redemption Notice, to submit such dispute to the American
Arbitration Association for resolution according to the then applicable rules
thereof, which determination shall be final and binding on all parties.  If it
shall be determined that a Holder shall receive additional monies in respect of
such redemption, the Company shall deliver to such Holder such amount within
three (3) business days of written notice of such determination.  The cost of
such proceeding shall be borne by the Company, except that the prevailing party,
as determined by the arbitrator presiding over the arbitration, shall be
entitled to recover reasonable attorneys' fees, in addition to other costs and
expenses and any other available remedy.

7.Conversion at the Option of the Holder.  Subject to the
limitations of Paragraph 15, the Holder shall have the following conversion
rights:

(a)Holder's Right to Convert.  Subject to the
restrictions set forth below, shares of Preferred Stock shall be convertible, in
whole or in part, at any time at the option of the Holder thereof, into fully
paid, validly issued and nonassessable shares of Common Stock in accordance with
the terms herein for such number of shares of Common Stock as determined by the
application of the Conversion Rate.

(b)Mechanics of Conversion.  In order to convert any
shares of Preferred Stock (in whole or in part) into full shares of Common
Stock, the applicable Holder shall surrender the stock certificate(s)
representing the shares of Preferred Stock to be converted, by either overnight
courier or two-day courier, to the principal office of the Company, and shall
give written notice in the form of EXHIBIT 3 (the "Conversion Notice") by
facsimile (with the original of such notice forwarded with the foregoing
courier) to the Company at such office to the effect that such Holder elects to
have converted the number of shares of Preferred Stock (plus accumulated but
unpaid dividends thereon) specified therein; provided, however,
that the Company shall not be obligated to issue stock certificate(s) evidencing
shares of Common Stock issuable upon such conversion unless either the stock
certificate(s) evidencing the shares of Preferred Stock being converted is
delivered to the Company as provided above, or if the Holder notifies the
Company that such certificate(s) has been lost, stolen or destroyed, such Holder
follows such procedures as are set forth in Paragraph 20.  If fewer than all the
shares represented by such certificate or certificates are to be converted, the
Company shall within three (3) business days issue and deliver to or on the
order of the Holder thereof, at the expense of the Company, a new certificate or
certificates representing the unconverted shares, to the same extent as if the
certificate theretofore representing such unconverted shares had not been
surrendered on conversion.  The effective date of conversion (the "Holder
Conversion Date") shall be deemed to be the date on which the Company
receives by facsimile the Conversion Notice.

(c)The Company shall use its best efforts to issue and
deliver within three (3) business days after receipt by the Company of such
stock certificate(s) evidencing the shares of Preferred Stock being converted,
or after receipt of the affidavit, agreement and indemnification as set forth in
Paragraph 20, to such Holder, or to its designee, certificates for the number of
shares of Common Stock to which such Holder shall be entitled hereunder or, if
requested by the Holder, issue such shares in electronic format (i.e., DWAC),
together with a certificate, certified by an appropriate officer of the Company,
setting forth the calculation of the Conversion Rate and, if appropriate, a
stock certificate evidencing the number of shares of Preferred Stock covered by
the submitted Preferred Stock Certificate but not submitted for conversion.  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 of such
shares of Common Stock on the Holder Conversion Date.

(d)Each certificate representing shares of Preferred Stock
surrendered to the Company for conversion pursuant to this Paragraph 7 shall, on
the Holder Conversion Date and subject to issuance of the shares of Common Stock
issuable upon conversion thereof, be canceled and retired by the Company.  Upon
issuance of the shares of Common Stock issuable upon conversion of the Preferred
Stock pursuant to this Paragraph 7, the shares of Preferred Stock formerly
represented thereby shall be deemed to be canceled and shall no longer be
considered to be issued and outstanding for any purpose, including without
limitation, for purposes of accumulating dividends thereon.  Such shares of
Preferred Stock shall be retired and shall not be subject to reissuance by the
Company.

8.Conversion at the Company's Election.  On any date
during the Company-Directed Period, the Company shall have the right, in its
sole discretion, to require that some or all of the outstanding shares of
Preferred Stock be converted (a "Company Conversion Election") into fully
paid, validly issued and nonassessable shares of Common Stock in accordance with
the terms herein for such number of shares of Common Stock as determined by the
application of the Conversion Rate.  The Company shall exercise the Company
Conversion Election by providing each Holder telephonic notice and written
notice in the form of EXHIBIT 4 (a "Company Election Conversion Notice")
by facsimile and electronic mail setting forth (a) the Aggregate Value of
the shares of Preferred Stock the Company has selected for conversion,
(b) the period selected by the Company for conversion (a "Company
Election Conversion Period"), which Company Election Conversion Period shall
be not less than the lesser of (i) ten (10) business days or (ii) the number of
days then remaining in the Company Directed Period or more than fifty (50)
business days and shall, in any event, expire upon conversion of all shares of
Preferred Stock specified in the Company Election Conversion Notice, (c) the
date on which the Company Election Conversion Period shall commence which shall
be two (2) business days after the date of the Company Election Conversion
Notice (a "Company Election Conversion Period Commencement Date"), and
(d) each Holder's Pro Rata Conversion Amount (as defined below).  Subject to the
last sentence of this Paragraph 8, a Company Conversion Election Period shall
not exceed beyond the expiration of the Company-Directed Period.  If the Company
elects to require conversion of some, but not all, of such shares of Preferred
Stock then outstanding, the Company shall require conversion of the pro rata
amount from each Holder based on the Stated Value of the shares of Preferred
Stock purchased by such Holder (or its predecessor) relative to the total Stated
Value of the number of shares of Preferred Stock purchased on the Issuance Date
(such amount with respect to each Holder being referred to herein as its "Pro
Rata Conversion Amount").  Each Holder shall,  during the Company Election
Conversion Period, deliver one or more Conversion Notices in accordance with
Paragraph 7(b), which one or more Conversion Notices shall relate to an
aggregate number of shares of Preferred Stock having an Aggregate Value equal to
such Holder's Pro Rata Conversion Amount.  Upon the expiration of the Company
Election Conversion Period, each Holder will be deemed to have submitted a
Conversion Notice (as of the last day of the Company Election Conversion Period)
in accordance with Paragraph 7(b) for a number of shares of Preferred Stock
having an Aggregate Value equal to (a) such holder's Pro Rata Conversion Amount
minus (b) the number of shares of Preferred Stock previously converted by such
Holder during the Company Election Conversion Period; provided, however, in no
event shall any Holder be required to convert during any Company Election
Conversion Period shares of Preferred Stock having an Aggregate Value in excess
of such Holder's pro rata portion (determined in the same manner as the Pro Rata
Conversion Amount above) of 10% of the aggregate trading volume of the Common
Stock on the Principal Market (as reported by Bloomberg, L.P.) during the
Company Election Conversion Period. 

Notwithstanding any other provision of this Certificate of
Designations, if the Company delivers a Blocking Notice (as defined in the
Registration Rights Agreement) during a Company Election Conversion Period, such
Company Election Conversion Period shall terminate and the Holders shall not be
obligated to continue to convert any shares of Preferred Stock for such Company
Election Conversion Period; provided, however, any Holder may
elect, in its sole discretion, to convert its Pro Rata Conversion Amount as if
the Company Election Conversion Period were still in effect.  In any event, once
the Blocking Notice has been withdrawn, the Company may deliver an additional
Company Election Conversion Notice and commence a new Company Election
Conversion Period.

The Company shall not be permitted to deliver a Company Election
Conversion Notice during any Company Election Conversion Period.

Notwithstanding any other provision of this Certificate of
Designations, upon the expiration of the Company-Directed Period, the Company
shall be deemed to have provided a Company Election Conversion Notice and to
have commenced a Company Election Conversion Period, which Company Election
Conversion Period will continue in effect through and including the Maturity
Date.

9.Maturity.

(a)On the date that is the fifth anniversary of the Issuance
Date, or such later date to which such date has been extended pursuant to
Paragraph 19 hereof (the "Maturity Date"), the Company shall cause the
shares of Preferred Stock then outstanding to be automatically converted into
that number of fully paid, validly issued and nonassessable shares of Common
Stock determined in accordance with the terms of this Certificate of
Designations by application of the then applicable Conversion Rate.

(b)The Company shall give the Holders written notice of such
conversion pursuant to Paragraph 9(a) not less than ten (10) days prior to the
Maturity Date, and such written notice shall specify (i) the Maturity Date, and
(ii) the place or places to which stock certificates representing the Preferred
Stock are to be surrendered for conversion.  Such conversion shall be effected
as of the Maturity Date in accordance with and pursuant to the terms of this
Certificate of Designations at the then applicable Conversion Rate and in
accordance with the procedures set forth in Paragraph 6(b) of this Certificate
of Designations; provided, however, that the Holder shall not be
obligated to provide the Conversion Notice to the Company.

(c)Each certificate representing shares of Preferred Stock
surrendered to the Company for conversion pursuant to this Paragraph 9 shall, on
the Maturity Date and subject to issuance of the shares of Common Stock issuable
upon conversion, be canceled and retired by the Company.  Upon issuance of the
shares of Common Stock issuable upon conversion of the Preferred Stock pursuant
to this Paragraph 9, the shares of Preferred Stock formerly represented thereby
shall be deemed to be canceled and shall no longer be considered to be issued
and outstanding for any purpose, including without limitation, for purposes of
accumulating dividends thereon.

(d)The Company shall use its best efforts to issue and
deliver within three (3) business days after receipt by the Company of the stock
certificate(s) evidencing the shares of Preferred Stock, or after receipt of the
affidavit, agreement and indemnification described in Paragraph 20, to all
Holders, or to their designee, a certificate for the number of shares of Common
Stock to which each Holder shall be entitled hereunder or, if requested by the
Holder, issue such shares in electronic format (i.e., DWAC), together with a
certificate, certified by an appropriate officer of the Company, setting forth
the calculation of the Conversion Rate.  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 of such shares of Common Stock on
the Maturity Date.  The Maturity Date shall be deemed a "Holder Conversion Date"
for purposes of the Preferred Stock.

10.Stock Splits; Dividends; Adjustments;
Reorganizations.

(a)Stock Splits and Combinations.  The Company shall
not effect any stock split, subdivision or combination with an effective date
within thirty (30) trading days of the Maturity Date.  If the Company at any
time subdivides (by any stock split, subdivision or otherwise) its outstanding
shares of Common Stock into a greater number of shares, the Ceiling Price in
effect immediately prior to such subdivision will be proportionately reduced.
If the Company at any time combines (by combination, reverse stock split or
otherwise) one or more of its outstanding shares of Common Stock into a smaller
number of shares, the Ceiling Price in effect immediately prior to such
combination will be proportionately increased.

(b)Certain Dividends and Distributions.  The Company
shall not make, or fix a record date for the determination of holders of Common
Stock or other securities entitled to receive, a dividend or other distribution
payable in additional shares of Common Stock, with an effective date within
thirty (30) trading days of the Maturity Date.

(c)Adjustment for Other Dividends and Distributions.
In the event the Company at any time or from time to time after the Issuance
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 Company other than shares of Common Stock, then and in each
such event, provision shall be made so that the Holders shall receive upon
conversion of their shares of Preferred Stock pursuant to Paragraphs 6 and 9
hereof, in addition to the number of shares of Common Stock receivable
thereupon, the amount of such other securities of the Company to which a Holder
on the relevant record or payment date, as applicable, of the number of shares
of Common Stock so receivable upon conversion would have been entitled, plus any
dividends or other distributions which would have been received with respect to
such securities had such Holder thereafter, during the period from the date of
such event to and including the Holder Conversion Date, retained such
securities, subject to all other adjustments called for during such period under
this Paragraph 10 with respect to the rights of the Holders.  For purposes of
this Paragraph 10(c), the number of shares of Common Stock so receivable upon
conversion by the Holder shall be deemed to be that number which the Holder
would have received upon conversion of the Preferred Stock if the Holder
Conversion Date had been the day preceding the date upon which the Company
announced the making of such dividend or other distribution.

(d)Adjustment of Conversion Period Conversion Price upon
Issuance of Derivative Securities.  Provided that the total Stated Value of
the then outstanding shares of Preferred Stock is in excess of $500,000, if the
Company in any manner issues or sells Derivative Securities at a conversion or
exercise price which varies from time to time while such Derivative Securities
are outstanding with the market price of the Common Stock (the formulation for
such variable price being herein referred to as the "Changing Price") and
such Changing Price is not calculated using the same formula used to calculate
the Conversion Period Conversion Price in effect immediately prior to the time
of such issue or sale, the Company shall provide written notice thereof via
facsimile and overnight courier to each holder of the shares of Preferred Stock
("Changing Notice") on the date of issuance of such Derivative
Securities.  If the holders of shares of Preferred Stock representing at least
two-thirds (2/3) of the shares of Preferred Stock then outstanding provide
written notice via facsimile and overnight courier (the "Changing Price
Election Notice") to the Company within five (5) business days of receiving
a Changing Notice that such holders desire to replace the Conversion Period
Conversion Price then in effect with the Changing Price described in such
Changing Notice, then from and after the date of the Company's receipt of the
Changing Price Election Notice the Conversion Period Conversion Price will
automatically be replaced with the Changing Price (together with such
modifications to this Certificate of Designations as may be required to give
full effect to the substitution of the Changing Price for the Conversion Period
Conversion Price).  In the event that a holder delivers a Conversion Notice at
any time after the Company's issuance of Derivative Securities with a Changing
Price but before such holder's receipt of the Company's Changing Notice, then
such holder shall have the option by written notice to the Company to rescind
such Conversion Notice or to have the Conversion Price be equal to such Changing
Price for the conversion effected by such Conversion Notice.

(e)Adjustment for Reclassification, Exchange and
Substitution.  In the event that at any time or from time to time after the
Issuance Date, the Common Stock issuable upon the conversion of the Preferred
Stock is changed into the same or a different number of shares of any class or
classes of stock, whether by recapitalization, reclassification or otherwise
(other than a subdivision or combination of shares or stock dividend or
reorganization provided for elsewhere in this Paragraph 10 or a merger,
consolidation or other business transaction provided for in Paragraph 5), then
and in each such event each Holder shall thereafter have the right upon
conversion to receive the kind and amount of shares of stock and other
securities, cash and property receivable upon such recapitalization,
reclassification or other change, by holders of the number of shares of Common
Stock which the Holder of shares of Preferred Stock would have received had it
converted such shares immediately prior to such recapitalization,
reclassification or other change, at the Conversion Price then in effect (the
kind, amount and price of such stock and other securities to be subject to
adjustments as herein provided).  Prior to the consummation of any
recapitalization, reclassification or other change contemplated hereby, the
Company will make appropriate provision (in form and substance satisfactory to
the Holders of a majority of the Preferred Stock then outstanding) to ensure
that each of the Holders of the Preferred Stock will thereafter have the right
to acquire and receive in lieu of or in addition to (as the case may be) the
shares of Common Stock otherwise acquirable and receivable upon the conversion
of such Holder's Preferred Stock, such shares of stock, securities or assets
that would have been issued or payable in such recapitalization,
reclassification or other change with respect to or in exchange for the number
of shares of Common Stock which would have been acquirable and receivable upon
the conversion of such Holder's Preferred Stock had such recapitalization,
reclassification or other change not taken place (without taking into account
any limitations or restrictions on the timing or amount of conversions).  In the
event of such recapitalization, reclassification or other change, the formulae
set forth herein for conversion and redemption shall be equitably adjusted to
reflect such change in number of shares or, if shares of a new class of stock
are issued, to reflect the market price of the class or classes of stock
(applying the same factors used in determining the Conversion Price for shares
of Common Stock) issued in connection with the above described events.

(f)Reorganization.  If at any time or from time to
time after the Issuance Date there is a capital reorganization of the Common
Stock (other than a recapitalization, subdivision, combination, reclassification
or exchange of shares provided for elsewhere in this Paragraph 10) then, as a
part of such reorganization, provisions shall be made so that the Holders shall
thereafter be entitled to receive upon conversion of its shares of Preferred
Stock the number of shares of stock or other securities or property to which a
holder of the number of shares of Common Stock deliverable upon conversion would
have been entitled to receive had the holder of shares of Preferred Stock
converted such shares immediately prior to such capital reorganization, at the
Conversion Price then in effect.  In any such case, appropriate adjustments
shall be made in the application of the provisions of this Paragraph 10 with
respect to the rights of the Holders after such capital reorganization to the
extent that the provisions of this Paragraph 10 shall be applicable after that
event and be as equivalent as may be practicable, including, by way of
illustration and not limitation, by equitably adjusting the formulae set forth
herein for conversion and redemption to reflect the market price of the
securities or property (applying the same factors used in determining the
Conversion Price for shares of Common Stock) issued in connection with the above
described events.

(g)Certain Events.  If any event occurs of the type
contemplated by the provisions of this Paragraph 10 but not expressly provided
for by such provisions, then the Company's Board of Directors will make an
appropriate adjustment in the Conversion Price so as to protect the rights of
the holders of the Preferred Stock;  provided, however, that no
such adjustment will increase the Conversion Price as otherwise determined
pursuant to this Paragraph 10.

(h)Dispute.  In the event of a dispute between a
Holder and the Company with respect to any of the adjustments required pursuant
to the provisions of this Paragraph 10, such Holder shall be entitled to receive
the number of shares of Common Stock as to which no dispute exists and, within
sixty (60) days of receipt of the Schedule of Computations (as defined below),
to submit such dispute to the American Arbitration Association for resolution
according to the then applicable rules thereof, which determination shall be
final and binding on all parties.  If it shall be determined that a Holder
should have received additional shares of Common Stock or other securities upon
such conversion (the "Undelivered Shares") then, within three (3) trading
days of receipt of written notice of such determination, the Company shall issue
to such Holder that number of additional shares of Common Stock or other
securities as shall have a value, based upon the then Conversion Price for
shares of Common Stock, as shall equal the Undelivered Shares times the
Conversion Price for shares of Common Stock on the date of conversion.  The cost
of such proceeding shall be borne by the Company, except that the prevailing
party, as determined by the arbitrator presiding over the arbitration, shall be
entitled to recover reasonable attorney's fees, in addition to other costs and
expenses and any other available remedy.

(i)Schedule of Computations.  The Company shall
provide written notice to the Holders of all adjustments pursuant to this
Paragraph 10 shall be notified within three (3) trading days of the occurrence
thereof and such notice shall be accompanied by a schedule setting forth a
detailed calculation of such adjustments (the "Schedule of
Computations").  If so requested by a Holder, the Company shall provide to
such Holder within ten (10) business days of its request therefor a certificate
of concurrence to the Schedule of Computations by the independent certified
public accountants of the Company.

11.Fractional Shares.  No fractional shares of Common
Stock or scrip representing fractional shares of Common Stock shall be issuable
hereunder.  The number of shares of Common Stock that are issuable upon any
conversion shall be rounded up or down to the nearest whole share. 

12.Reservation of Stock; Conversion Default.

(a)Reservation Requirement.  The Company shall at all
times reserve and keep available out of its authorized but unissued shares of
Common Stock such number of shares of Common Stock as shall be necessary for the
purpose of effecting the conversion of shares of Preferred Stock, which shares
shall be free of preemptive rights, for the purpose of enabling the Company to
satisfy any obligation to issue shares of its Common Stock, or other securities,
upon conversion of all shares of Preferred Stock pursuant hereto. The Company
shall initially reserve a number of shares of Common Stock equal to one and one-
half times the number of shares necessary to satisfy its obligations on
conversion of the Preferred Stock if all such shares were converted on the
Issuance Date.  Furthermore, additional provisions pertaining to the reservation
of Common Stock set forth in Section 5.2 of the Subscription Agreement shall be
applicable and are specifically incorporated by reference herein.

(b)Default.  If the Company (i) notifies a Holder via
facsimile or pursuant to a public disclosure, including, but not limited to a
press release, that the Company cannot, or does not intend to, or (ii) fails to,
issue shares of Common Stock registered for resale under the Registration
Statement for any reason (a "Conversion Default"), including, without
limitation, because the Company (x) does not have a sufficient number of shares
of Common Stock or other securities authorized and available, (y) is otherwise
prohibited by applicable law or by the rules and regulations of any stock
exchange, interdealer quotation system or other self-regulatory organization
with jurisdiction over the Company or its securities, including without
limitation the Exchange Cap (as defined in Paragraph 16), from issuing all of
the Common Stock which is to be issued to a Holder or (z) fails to effectuate a
resale by a Holder because there is an insufficient number of shares covered by
the Registration Statement, then the Company shall issue as many shares of
Common Stock as it is able to issue in accordance with such Holder's Conversion
Notice, and with respect to the unconverted shares of Preferred Stock, notify
the Holder of such failure (a "Default Notice") which notice shall
indicate (I) the reason why the Company is unable to fully satisfy such holder's
Conversion Notice, (II) the number of shares of  Preferred Stock which cannot be
converted and (III) the applicable mandatory redemption price (as calculated
pursuant to the terms below).  Such Holder must within ten (10) business days of
(i) receipt of such Default Notice or (ii) becoming aware of such Conversion
Default, deliver written notice via facsimile to the Company ("Remedies
Notice") of its election pursuant to this Paragraph 12. 

(c)Each Holder pursuant to such Default Notice shall have the
following options pursuant to this Paragraph 12(c), at its election:  (i)  the
right to demand from the Company immediate redemption of its shares of Preferred
Stock in cash at 125% of the Aggregate Value; (ii) if the Company's inability to
fully convert Preferred Shares is pursuant to subparagraph (b)(ii)(z) above,
require the Company to issue restricted shares of Common Stock in accordance
with such Holder's Conversion Notice; or (iii) void its Conversion Notice and
have returned the nonconverted shares of Preferred Stock that were to be
converted pursuant to such Holder's Conversion Notice.  Notwithstanding the
foregoing, no Remedies Notice may be delivered by a Holder subsequent to receipt
by such Holder of notice from the Company (sent by overnight or two-day courier
with a copy sent by facsimile) of the availability of sufficient shares of
Common Stock or other securities to perfect conversion (a "Post-Default
Conversion") of all the Preferred Stock; provided that such rights as
set forth herein and election as set forth in the Remedies Notice shall be
reinstated if the Company shall thereafter fail to perfect such Post-Default
Conversion by delivery of Common Stock certificates or certificates representing
other securities in accordance with the applicable provisions hereof and payment
of all accumulated and unpaid dividends in cash with respect thereto within five
(5) days of delivery of the notice of Post-Default Conversion.

(d)In addition to the foregoing, upon a Conversion Default,
the Holders shall have the right to receive a 2.0% reduction in the Conversion
Price of the Preferred Stock (including shares of Preferred Stock for which a
Conversion Notice has not yet been sent) for each thirty (30) day period (or
part thereof) following a Conversion Default;  provided, however,
that if the Company's inability to fully convert shares of the Preferred Stock
is pursuant to subparagraph (b)(ii)(y) above, the Company shall have sixty (60)
days to cure such default prior to giving rise to the right of the Holder to
exercise remedies pursuant to this Paragraph 12;  provided,
however, that if the Company's inability to fully convert shares of the
Preferred Stock is the result of a Triggering Event, the sixty (60) day cure
period of this Section 12(d) will not apply. 

13.Taxes.  The Company shall pay any and all taxes
attributable to the issuance and delivery of Common Stock or other securities
upon conversion of the Preferred Stock. 

14.Voting Rights.  The Holders shall have no voting
rights, except as required by law, including but not limited to the Delaware
General Corporation Law, and as expressly provided in this Certificate of
Designations. 

15.Liquidation, Dissolution, Winding-Up.  (a)  In the
event of any voluntary or involuntary liquidation, dissolution or winding up of
the Company, the Holders shall be entitled to receive in cash out of the assets
of the Company, whether from capital or from earnings available for distribution
to its shareholders (the "Preferred Funds"), before any amount shall be
paid to the holders of any Common Stock or any Junior Securities, an amount per
share of Preferred Stock equal to the Aggregate Value (the "Liquidation
Value"); provided that, if the Preferred Funds are insufficient to
pay the full amount due to the Holders and any holders of Parity Securities, if
any, then each Holder and each holder of Parity Securities, to the extent
applicable, shall receive a ratable percentage of the Preferred Funds in
accordance with the respective amounts that would be payable in full to such
holder as a liquidation preference, in accordance with their respective
Certificate of Designation, Preferences and Rights.

(b)The purchase or redemption by the Company of stock of any
class, in any manner permitted by law, shall not, for the purposes hereof, be
regarded as a liquidation, dissolution or winding up of the Company.  Neither
the consolidation or merger of the Company with or into any other person, nor
the sale or transfer by the Company of less than substantially all of its
assets, shall, for the purposes hereof, be deemed to be a liquidation,
dissolution or winding up of the Company. 

(c)No Holder shall be entitled to receive any amounts with
respect thereto upon my liquidation, dissolution or winding up of the Company
other than the amounts provided for herein. 

16.Limitation on Number of Conversion Shares.  (a)  The
Company shall not be obligated to issue upon conversion of the shares of
Preferred Stock, in the aggregate, more than a number of shares of Common Stock
equal to 19.99% of the number of shares of Common Stock outstanding on the
Issuance Date (such amount to be proportionately and equitably adjusted from
time to time in the event of stock splits, stock dividends, combinations,
reverse stock splits, reclassification, capital reorganization and similar
events relating to the Common Stock) (the "Exchange Cap"), if issuance of
a larger number of shares of Common Stock would constitute a breach of the
Company's obligations under the rules or regulations of The Nasdaq National
Market or any other principal securities exchange or market upon which the
Common Stock is or becomes traded.  The Exchange Cap shall be allocated among
the Holders pro rata based on the total number of outstanding shares of
Preferred Stock. 

(b)In no event shall the Company honor any request by any
Holder to convert any shares of Series B Preferred in excess of that number of
Series B Preferred Stock which, upon giving effect to such conversion, would
cause the aggregate number of shares of Common Stock beneficially owned by the
Holder and its affiliates to exceed 4.99% of the outstanding shares of the
Common Stock following such conversion, provided, however, that a Holder may
elect to waive this restriction upon not less than sixty-one (61) days prior
written notice to the Company; provided further that this restriction shall not
preclude the Company from issuing shares in connection with the Maturity Date.
For purposes of this paragraph "beneficial ownership" shall be calculated in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended.  The Company shall have the right to confirm with the Holder in
writing, from time to time, the beneficial ownership of Common Stock held by
such Holder and its affiliates.  

17.No Reissuance of Preferred Stock.  No shares of
Preferred Stock acquired by the Company by reason of redemption, purchase,
conversion or otherwise shall be reissued, and all such Preferred Stock shall be
retired. 

18.No Impairment.  The Company shall not intentionally
take any action which would impair the rights and privileges of the Preferred
Stock set forth herein or the rights of the Holders thereof.

19.Registration Suspension.  In the event that at any time
or from time to time any Registration Statement is suspended or trading in the
Common Stock on the Nasdaq National Market is suspended for a period of time
(excluding disruptions from business announcements that result in any halt(s) in
trading of not more than one (1) day on each occasion) and other suspension of
trading on such market in general (each, a "Blackout Period"), the
Maturity Date hereunder shall be extended for a period equal to l.5 times the
number of days in such Blackout Period.  Furthermore, additional provisions
pertaining to the suspension of effectiveness of such registration statement set
forth in Section 5A of the Registration Rights Agreement shall be applicable in
the event of a Blackout Period, and such provisions as specifically incorporated
by reference herein.

20.Replacement Certificate.  In the event that any Holder
notifies the Company that a stock certificate evidencing shares of Preferred
Stock has been lost, stolen, destroyed or mutilated, the Company shall issue a
replacement stock certificate evidencing the Preferred Stock identical in tenor
and date (or if such certificate is being issued for shares not covered in a
redemption or conversion, in the applicable tenor and date) to the original
stock certificate evidencing the Preferred Stock, provided that the
Holder executes and delivers to the Company an affidavit of lost stock
certificate and an agreement reasonably satisfactory to the Company to indemnify
the Company from any loss incurred by it in connection with such Preferred Stock
stock certificate; provided, however, the Company shall not be
obligated to re-issue replacement stock certificates if the Holder
contemporaneously requests the Company to convert or redeem the full number of
shares evidenced by such lost, stolen, destroyed or mutilated certificate. 

IN WITNESS WHEREOF, the Company has caused this Certificate of
Designations to be duly executed by an officer thereunto duly authorized this
9th day of March, 2001.

 

CENTURA SOFTWARE CORPORATION

 

By:    /s/ Scott Broomfield

       Name: Scott Broomfield

       Title: Chairman and Chief Executive Officer

EXHIBIT 1

HOLDER REDEMPTION NOTICE

Reference is made to the Certificate of Designation, Preferences and Rights
(the "Certificate of Designations") of Centura Software Corporation, a
Delaware corporation (the "Company").  In accordance with and pursuant to
the Certificate of Designations, the undersigned hereby elects to have the
Company redeem the number of shares of Series B Cumulative Convertible Preferred
Stock, par value $.01 per share (the ''Preferred Stock"), of the Company,
indicated below by tendering the stock certificate(s) representing the share(s)
of Preferred Stock specified below as of the date specified below. 

Date of Redemption: 

Number of shares of

Preferred Stock to be redeemed: 

Stock certificate no(s). of

Preferred Stock to be redeemed: 

Please confirm the following information:

Redemption Price: 

The undersigned holder hereby represents, warrants and reaffirms to the
Company, as of the date hereof, the accuracy of the representations and
warranties made by it in Article 2 of the Subscription Agreement dated
March ____, 2001 executed by the undersigned and accepted by the Company. 

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

Pay to:

Facsimile Number:

Authorization:

By:

Title:

Dated:

EXHIBIT 2

COMPANY REDEMPTION NOTICE

Reference is made to the Certificate of Designation, Preferences and
Rights (the "Certificate of Designations") of Centura Software
Corporation, a Delaware corporation (the "Company").  In accordance with
and pursuant to the Certificate of Designations, the Company hereby elects to
redeem the number of shares of Series B Cumulative Convertible Preferred Stock,
par value $.01 per share (the ''Preferred Stock"), of the Company in
accordance with the information set forth below.  Please tender the stock
certificate(s) representing the share(s) of Preferred Stock specified below as
of the Redemption Date.

Date of Redemption: 

Company Redemption Price: 

CENTURA SOFTWARE CORPORATION

 

By:________________________________

Name:

Title:  

Dated:

EXHIBIT 3

HOLDER CONVERSION NOTICE

Reference is made to the Certificate of Designation, Preferences and Rights
(the "Certificate of Designations") of Centura Software Corporation, a
Delaware corporation (the "Company").  In accordance with and pursuant to
the Certificate of Designations, the undersigned hereby elects to have the
Company convert the number of shares of Series B Cumulative Convertible
Preferred Stock, par value $.01 per share (the "Preferred Stock"), of the
Company, indicated below into shares of Common Stock, par value $0.01 per share
(the "Common Stock"), of the Company, by tendering the stock
certificate(s) representing the share(s) of Preferred Stock specified below as
of the date specified below. 

 
Date of Conversion: 

Aggregate Value of Preferred Stock to 

be converted:
 

Stock certificate no(s). of

Preferred Stock to be converted: 

Please confirm the following information:

Conversion Price: 

Number of Common Shares to be Received: 

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

Issue to:

Facsimile Number:

Authorization:

By:  

Title: 

Dated:

EXHIBIT 4

COMPANY ELECTION CONVERSION NOTICE

Reference is made to the Certificate of Designation, Preferences and Rights
(the "Certificate of Designations") of Centura Software Corporation, a
Delaware corporation (the "Company").  In accordance with and pursuant to
the Certificate of Designations, the Company hereby elects to have the Holders
convert the number of shares of Series B Cumulative Convertible Preferred Stock,
par value $.01 per share (the "Preferred Stock"), of the Company, having
an Aggregate Value indicated below into shares of Common Stock, par value $0.01
per share (the "Common Stock"), of the Company.

 
Aggregate Value of the Preferred Stock

selected for conversion: 
 

Company Election Conversion Period: 

From:______________________________

To:______________________________

Company Election Conversion Period

Commencement Date:______________________________

Holder's Pro Rata Conversion Amount:______________________________

 
CENTURA SOFTWARE CORPORATION

 

By:________________________________

Name:

Title:  

Dated:

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