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                                                                    EXHIBIT 4.24

                          OUTBOARD MARINE CORPORATION

                    CERTIFICATE OF THE POWERS, DESIGNATIONS,

                         PREFERENCES AND RIGHTS OF THE

                     SERIES C CONVERTIBLE PREFERRED STOCK,

                            PAR VALUE $.01 PER SHARE

             Pursuant to Section 151 of the General Corporation Law

                            of the State of Delaware

          The following resolution was duly adopted by the Board of Directors of
Outboard Marine Corporation, a Delaware corporation (the "Corporation"),
pursuant to the provisions of Section 151 of the General Corporation Law of the
State of Delaware, on May 31, 2000, by the unanimous written consent of the
Board of Directors of the Corporation:

          WHEREAS, the Board of Directors of the Corporation is authorized,
within the limitations and restrictions stated in the Certificate of
Incorporation of the Corporation, to provide by resolution or resolutions for
the issuance of shares of preferred stock, par value $.01 per share, of the
Corporation, in one or more series with such voting powers, full or limited, or
without voting powers, and such designations, preferences and relative,
participating, optional or other special rights, and qualifications, limitations
or restrictions as shall be stated and expressed in the resolution or
resolutions providing for the issuance thereof adopted by the Board of
Directors, and as are not stated and expressed in the Certificate of
Incorporation, or any amendment thereto, including (but without limiting the
generality of the foregoing) such provisions as may be desired concerning
voting,
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redemption, dividends, dissolution or the distribution of assets and such other
subjects or matters as may be fixed by resolution or resolutions of the Board of
Directors under the General Corporation Law of the State of Delaware; and

          WHEREAS, it is the desire of the Board of Directors of the
Corporation, pursuant to its authority as aforesaid, to authorize and fix the
terms of a series of preferred stock and the number of shares constituting such
series;

          NOW, THEREFORE, BE IT RESOLVED:

          1. Designation and Number of Shares. There shall be hereby established
a series of preferred stock designated as "Series C Convertible Preferred Stock"
(such series being hereinafter referred to as the "Series C Preferred Stock").
The authorized number of shares of Series C Preferred Stock shall be 200,000.
The initial liquidation preference of each share Series C Preferred Stock upon
issuance shall be $100 per share (the "Initial Liquidation Preference"). As used
herein, the "Liquidation Preference" of a share of Series C Preferred Stock
shall be an amount equal to the Initial Liquidation Preference plus all amounts
added thereto in accordance with Section 3(a) hereof.

          2. Rank. The Series C Preferred Stock shall, with respect to dividend
distributions and distributions of assets and rights upon the liquidation,
winding up and dissolution of the Corporation, rank (i) on parity with the then
outstanding shares of Parity Stock, and (ii) senior to all classes of common
stock of the Corporation (including, without limitation, the common stock, par
value $.01 per share, of the Corporation (the "Common Stock")), the Series A
Preferred Stock and to each other class or series of capital stock of the
Corporation hereafter created other than Parity Stock (the Common Stock, the
Series A Preferred Stock and each other class or series of capital stock of the
Corporation other than the Parity Stock are hereinafter collectively referred to
as the "Junior Stock").
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          3.  Dividends.
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              (a) Beginning on the date of issuance of the Series C Preferred
Stock, the holders of the outstanding shares of Series C Preferred Stock shall
be entitled to receive, when, as and if declared by the Board of Directors of
the Corporation, out of funds legally available therefor, cash dividends on each
share of Series C Preferred Stock at a quarterly rate equal to 3.75% of the then
current Liquidation Preference, payable in arrears on each Dividend Payment Date
commencing on the Initial Dividend Payment Date or the next succeeding Business
Day, if the applicable Dividend Payment Date is not a Business Day.
Notwithstanding the foregoing, the dividend payable on each share of Series C
Preferred Stock with respect to the Initial Dividend Period shall be equal to
the product of (i) 15.0% of the Initial Liquidation Preference multiplied by
(ii) a fraction the numerator of which is the actual number of days from (and
including) the Series C Preferred Stock Issue Date to (but excluding) the
Dividend Payment Date with respect to the Initial Dividend Period, and the
denominator of which is 365. If any dividend (or portion thereof) payable on any
Dividend Payment Date is not declared or paid in full on such Dividend Payment
Date, the amount of such dividend payable that is not paid on such date shall
automatically be added to and cause to be increased the then applicable
Liquidation Preference. Each distribution on the Series C Preferred Stock shall
be payable to holders of record as they appear on the stock books of the
Corporation on such record dates, not less than ten (10) nor more than sixty
(60) days preceding the related Dividend Payment Date, as shall be fixed by the
Board of Directors of the Corporation.

              (b) All dividends paid with respect to shares of Series C
Preferred Stock pursuant to Section 3(a) shall be paid pro rata and in like
manner to all of the holders entitled thereto. No dividends or other
distributions may be declared or paid or set apart for
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payment on the Series C Preferred Stock or any other Parity Stock, and no Parity
Stock, including the Series C Preferred Stock, may be repurchased, exchanged,
redeemed or otherwise acquired by the Corporation (other than upon conversion
thereof in accordance with the terms of such Parity Stock), nor may funds be set
apart for payment with respect thereto, unless such dividend, repurchase,
exchange, redemption or other acquisition (other than upon conversion thereof in
accordance with the terms of such Parity Stock) is applied pro rata and in a
like manner to all outstanding shares of Parity Stock.

              (c) Nothing herein contained shall in any way or under any
circumstances be construed or deemed to require the Board of Directors of the
Corporation to declare, or the Corporation to pay or set apart for payment, any
dividends on shares of the Series C Preferred Stock at any time.

              (d) Beginning on the Series C Preferred Stock Issue Date, if the
Board of Directors of the Corporation shall declare a dividend or make any other
distribution (including, without limitation, in cash or other property or
assets) to holders of shares of Common Stock (other than (i) dividends payable
in capital stock for which adjustment is made under Section 5(c)(i) or (ii)
subscription rights or warrants for which an adjustment is made under Section
5(c)(ii)), then the holders of each share of Series C Preferred Stock shall be
entitled to receive a dividend or distribution in an amount equal to the amount
of such dividend or distribution received by a holder of the number of shares of
Common Stock for which such share of Series C Preferred Stock is convertible on
the record date for such dividend or distribution. Any such amount shall be paid
to the holders of shares of Series C Preferred Stock at the same time such
dividend or distribution is made to holders of Common Stock. The foregoing
notwithstanding, so long as any shares of the Series C Preferred Stock are
outstanding, the Corporation shall not declare, pay or set apart for
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payment any dividend on any shares of Junior Stock or make any payment on
account of, or set apart for payment money for a sinking or other similar fund
for, the purchase, redemption or other retirement of, any shares of Junior Stock
or any warrants, rights, calls or options exercisable for or convertible into
any shares of Junior Stock, or make any distribution in respect thereof, either
directly or indirectly, whether in cash, obligations or shares of the
Corporation or other property unless prior to such declaration, payment and set
apart, the holders of not less than 85% of the outstanding shares of Series C
Preferred Stock shall have consented thereto in writing.

          4.  Liquidation, Dissolution or Winding Up.
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              (a) In the event of any liquidation, dissolution or winding up of
the Corporation, either voluntary or involuntary, before any distribution or
payment to holders of Junior Stock, the holders of shares of Series C Preferred
Stock shall be entitled to be paid an amount equal to the greater of (i) the
Liquidation Preference, plus an amount in cash equal to the product of (x) 15%
of the then current Liquidation Preference, and (y) a fraction, the numerator of
which is the actual number of days from (and including) the most recent Dividend
Payment Date to (but excluding) the date fixed for liquidation, dissolution or
winding-up of the Corporation, and the denominator of which is 365, and (ii) the
amount that the holders of shares of Series C Preferred Stock would be entitled
to receive in connection with such liquidation, dissolution or winding up if all
of the holders of the Series C Preferred Stock had converted their shares
immediately prior to any relevant record date or payment in connection with such
liquidation, dissolution or winding up, in either case, before any payment or
distribution is made to any class or series of capital stock.

              (b) If, upon any liquidation, dissolution or winding up of the
Corporation, the assets of the Corporation available for distribution to the
holders of
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outstanding shares of Parity Stock, including, without limitations, outstanding
shares of Series C Preferred Stock, shall be insufficient to permit payment in
full to such holders of the sums which such holders are entitled to receive in
such case, then all of the assets available for distribution to holders of
outstanding shares of Parity Stock, including, without limitations, outstanding
shares of Series C Preferred Stock, shall be distributed among and paid to such
holders ratably in proportion to the amounts that would be payable to such
holders if such assets were sufficient to permit payment in full.

              (c) Neither the consolidation or merger of the Corporation with or
into any other Person nor the sale or other distribution to another Person of
all or substantially all the assets, property or business of the Corporation,
shall be deemed to be a liquidation, dissolution or winding up of the
Corporation for purposes of this Section 4.

          5.  Conversion.
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              (a)  Stockholders' Right To Convert.  Each share of Series C
Preferred Stock shall be convertible, at the option of the holder thereof, at
any time, or from time to time, into fully paid and nonassessable shares of
Common Stock at the Conversion Price.  As used herein the "Conversion Price"
shall be $6.25 per share, subject to adjustment as set forth in this Section 5.

              (b)  Number of Shares of Common Stock Issuable upon Conversion.
The number of shares of Common Stock to be issued upon conversion of shares of
Series C Preferred Stock pursuant to Section 5(a) shall be equal to the product
of (i) a fraction, the numerator of which is the then current Liquidation
Preference and the denominator of which is the Conversion Price, and (ii) the
number of shares of Series C Preferred Stock to be converted.
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              (c)  Antidilution Adjustments.  The Conversion Price shall be
adjusted from time to time in certain cases as follows:

                   (i)  Dividend, Subdivision, Combination or Reclassification
of Common Stock. If the Corporation shall, at any time or from time to time, (a)
declare a dividend on the Common Stock payable in shares of its capital stock
(including Common Stock), (b) subdivide the outstanding Common Stock, (c)
combine the outstanding Common Stock into a smaller number of shares, or (d)
issue any shares of its capital stock in a reclassification of the Common Stock
(excluding any such reclassification in connection with a consolidation or
merger in which the Corporation is the continuing corporation), then in each
such case, the Conversion Price in effect at the time of the record date for
such dividend or of the effective date of such subdivision, combination or
reclassification and the number and kind of shares of capital stock issuable on
such date shall be proportionately adjusted so that, in connection with a
conversion after such date, the holder of the Series C Preferred Stock shall be
entitled to receive the aggregate number and kind of shares of capital stock
which, if the conversion had occurred immediately prior to such date, the holder
would have owned upon such conversion and been entitled to receive by virtue of
such dividend, subdivision, combination or reclassification. Any such adjustment
shall become effective immediately after the record date of such dividend or the
effective date of such subdivision, combination or reclassification. Such
adjustment shall be made successively whenever any event listed above shall
occur. If a dividend is declared and such dividend is not paid, the Conversion
Price shall be adjusted to the Conversion Price in effect immediately prior to
such record date.

                   (ii) Issuance of Rights to Purchase Common Stock Below
Current Market Price or Conversion Price. If the Corporation shall, at any time
or from time
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to time, fix a record date for the issuance of rights or warrants to all holders
of Common Stock entitling them (for a period expiring within 45 calendar days
after such record date) to subscribe for or purchase Common Stock or securities
convertible into Common Stock at a price per share of Common Stock, or having a
conversion price per share of Common Stock, if a security is convertible into
Common Stock (determined by dividing (x) the sum of (A) the total consideration,
if any, paid to the Corporation for such rights, warrants or other securities
convertible into Common Stock, and (B) the total consideration payable to the
Corporation upon exercise, conversion or exchange of such rights, warrants or
other securities convertible into Common Stock (the sum of (A) and (B) being the
"Conversion Consideration"), by (y) the total number of shares of Common Stock
covered by such rights, warrants or other securities convertible into Common
Stock), lower than either the Current Market Price per share of Common Stock on
such record date (or, if an ex-dividend date has been established for such
record date, on the day next preceding such ex-dividend date) or the then
current Conversion Price, then the current Conversion Price shall be reduced to
the price determined by multiplying (1) the Conversion Price in effect
immediately prior to such record date by (2) a fraction, the numerator of which
shall be the sum of (I) the number of shares of Common Stock outstanding on such
record date, plus (II) the quotient obtained by dividing the Conversion
Consideration by the Applicable Price, and the denominator of which shall be the
sum of (I) the number of shares of Common Stock outstanding on such record date
plus (II) the number of additional shares of Common Stock to be offered for
subscription or purchase (or the total number of shares of Common Stock covered
by such rights, warrants or other securities convertible into Common Stock). In
case such price for subscription or purchase may be paid in a consideration part
or all of which shall be in a form other than cash, the value of such
consideration shall be determined in good faith by the
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Board of Directors of the Corporation and shall be that value which is agreed
upon by at least 75% of the members thereof; provided, that if the holders of
25% of the shares of Series C Preferred Stock object to such valuation as
determined by the Board of Directors within fifteen (15) days of receipt of
written notice of such valuation or, if 75% of the members of the Board of
Directors of the Corporation are unable to agree upon the value of such
consideration, the value thereof shall be determined by an independent
investment bank of nationally recognized stature that is selected by 75% of the
members of the Board of Directors. Any such adjustment shall become effective
immediately after the record date for such rights or warrants. Such adjustment
shall be made successively whenever such a record date is fixed. If such rights
or warrants are not so issued, the then current Conversion Price shall be
adjusted to the Conversion Price in effect immediately prior to such record
date. The determination of whether any adjustment is required under this Section
5(c)(ii) by reason of the sale and issuance of rights, options, warrants or
convertible or exchangeable securities and the amount of such adjustment, if
any, shall be made only at the time of such issuance or sale and not at the
subsequent time of issuance or sale of Common Stock upon the exercise or
conversion of such rights, warrant, options or convertible or exchangeable
securities. Upon the expiration of any such options, warrants or rights, the
termination of any such rights to convert or exchange or the expiration of any
options, warrants or rights related to such convertible or exchangeable
securities, the Conversion Price, to the extent in any way affected by or
computed using such options, warrants, rights or securities or options or rights
related to such securities, shall be recomputed to reflect the issuance of only
the number of shares of Common Stock actually issued upon the exercise of such
options, warrants or rights, upon the conversion or exchange of such securities
or upon the exercise of the options or rights related to such securities.
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                   (iii)  Issuance of Common Stock Below Current Market Price or
Conversion Price. If the Corporation shall, at any time or from time to time,
sell or issue shares of Common Stock (regardless of whether originally issued or
from the Corporation's treasury), or rights, options, warrants or convertible or
exchangeable securities containing the right to subscribe for or purchase shares
of Common Stock (excluding (A) shares issued in any of the transactions
described in Section 5(c)(i) or (ii), (B) shares of Common Stock issued upon
conversion of any shares of Series A Preferred Stock, (C) shares of Common Stock
issued upon the exercise of Common Stock purchase warrants issued pursuant to
that certain Series A Preferred Stock and Warrant Purchase Agreement, dated
January 28, 2000, among the Corporation, Quantum Industrial Partners LDC and
Greenlake Holdings II LLC, (D) any shares of Series B Preferred Stock issued
upon the conversion the Subordinated Notes issued under that certain
Subordinated Note and Warrant Purchase Agreement, dated May 2, 2000, among the
Corporation, Quantum Industrial Partners LDC and Greenlake Holdings III LLC, (E)
shares of Common Stock issued upon the conversion of any shares of Series B
Preferred Stock, (F) shares of Common Stock issued upon exercise of Common Stock
purchase warrants issued by the Corporation pursuant to that certain
Subordinated Note and Warrant Purchase Agreement, dated May 2, 2000, among the
Corporation, Quantum Industrial Partners LDC and Greenlake Holdings III LLC, (G)
shares of Common Stock issued upon the conversion of any shares of Series C
Preferred Stock, (H) Common Stock purchase warrants issued pursuant to that
certain Preferred Stock and Warrant Purchase Agreement, dated May 31, 2000,
among the Corporation, Quantum Industrial Partners LDC and Greenlake Holdings
III LLC, and the shares of Common Stock issuable upon the exercise of such
warrants, and (I) options issuable pursuant to bona fide employee benefit plans
or arrangements approved or adopted by the Corporation's Board of
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Directors, and the shares of Common Stock issuable on exercise of such options)
at a price per share of Common Stock (determined, in the case of rights,
options, warrants or convertible or exchangeable securities, by dividing (x) the
total consideration received or receivable by the Corporation in consideration
of the sale or issuance of such rights, options, warrants or convertible or
exchangeable securities, plus the total consideration payable to the Corporation
upon exercise or conversion or exchange thereof, by (y) the total number of
shares of Common Stock covered by such rights, options, warrants or convertible
or exchangeable securities) lower than either the Current Market Price per share
of Common Stock or the Conversion Price immediately prior to such sale or
issuance, then the Conversion Price shall be reduced to the price determined by
multiplying the Conversion Price in effect immediately prior thereto by a
fraction, the numerator of which shall be the sum of (I) the number of shares of
Common Stock outstanding immediately prior to such sale or issuance, plus (II)
the quotient obtained by dividing the aggregate consideration received
(determined as provided below) for such sale or issuance by the Applicable
Price, and the denominator of which shall be the total number of shares of
Common Stock outstanding immediately after such sale or issuance. Such
adjustment shall be made successively whenever such sale or issuance is made.
For the purposes of such adjustments, the shares of Common Stock which the
holder of any such rights, options, warrants, or convertible or exchangeable
securities shall be entitled to subscribe for or purchase shall be deemed to be
issued and outstanding as of the date of such sale or issuance and the
consideration "received" by the Corporation therefor shall be deemed to be the
consideration actually received or receivable by the Corporation (plus any
underwriting discounts or commissions in connection therewith) for such rights,
options, warrants or convertible or exchangeable securities, plus the
consideration stated in such rights, options, warrants or convertible or
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exchangeable securities to be payable to the Corporation for the shares of
Common Stock covered thereby. If the Corporation shall sell or issue shares of
Common Stock for a consideration consisting, in whole or in part, of property
other than cash or its equivalent, then in determining the "price per share of
Common Stock" and the "consideration" received or receivable by or payable to
the Corporation for purposes of the first sentence and the immediately preceding
sentence of this Section 5(c)(iii), the fair value of such property shall be
determined in good faith by the Board of Directors of the Corporation and shall
be the value which is agreed upon by at least 75% of the members thereof or if
75% of the members of the Board of Directors of the Corporation are unable to
agree upon the value of such consideration, the value thereof shall be
determined by an independent investment bank of nationally recognized stature
that is selected by 75% of the members of the Board of Directors. The
determination of whether any adjustment is required under this Section 5(c)(iii)
by reason of the sale and issuance of rights, options, warrants or convertible
or exchangeable securities and the amount of such adjustment, if any, shall be
made only at the time of such issuance or sale and not at the subsequent time of
issuance or sale of Common Stock upon the exercise or conversion of such rights,
options, warrants or convertible or exchangeable securities. Upon the expiration
of any such options, warrants or rights, the termination of any such rights to
convert or exchange or the expiration of any options, warrants or rights related
to such convertible or exchangeable securities, the then current Conversion
Price, to the extent in any was affected by or computed using such options,
warrants, rights or securities or options or rights related to such securities,
shall be recomputed to reflect the issuance of only the number of shares of
Common Stock actually issued upon the exercise of such options, warrants or
rights, upon the conversion or exchange of such securities or upon the exercise
of the options or rights related to such securities.
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              (d)  De Minimis Adjustments.  No adjustment of the then current
Conversion Price shall be made if the amount of such adjustment would result in
a change in the then current Conversion Price per share of less than $.10, but
in such case any adjustment that would otherwise be required to be made shall be
carried forward and shall be made at the time of and together with the next
subsequent adjustment, which together with any adjustment so carried forward,
would result in a change in the then current Conversion Price of at least $.10
per share. Notwithstanding the provisions of the first sentence of this Section
5(d), any adjustment postponed pursuant to this Section 5(d) shall be made no
later than the earlier of (i) three years from the date of the transaction that
would, but for the provisions of the first sentence of this Section 5(d), have
required such adjustment and (ii) the date of any conversion of shares of Series
C Preferred Stock into shares of Common Stock.

              (e)  Fractional Shares. Notwithstanding any other provision of
this Certificate of Designation or the Corporation's Certificate of
Incorporation, the Corporation shall not be required to issue fractions of
shares upon conversion of any shares of Series C Preferred Stock or to
distribute certificates which evidence fractional shares. In lieu of fractional
shares, the Corporation may pay therefore, at the time of any conversion of
shares of Series C Preferred Stock as herein provided, an amount in cash equal
to such fraction multiplied by the greater of the Current Market Price of a
share of Common Stock on such date and the Conversion Price.

              (f)  Reorganization, Reclassification, Merger and Sale of Assets
Adjustment. If there occurs any capital reorganization or any reclassification
of the Common Stock (other than a reorganization or reclassification that
results in an adjustment pursuant to provisions of Section 5(c) hereof), the
consolidation or merger of the Corporation with or
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into another Person (other than a merger or consolidation of the Corporation in
which the Corporation is the continuing corporation and which does not result in
any reclassification or change of outstanding shares of Common Stock) or the
sale, transfer or other disposition of all or substantially all of the assets of
the Corporation to another Person, then each share of Series C Preferred Stock
shall thereafter be convertible into the same kind and amounts of securities
(including shares of stock) or other assets, or both, which were issuable or
distributable to the holders of outstanding Common Stock upon such
reorganization, reclassification, consolidation, merger, sale or conveyance (but
only to the extent that a dividend or distribution with respect thereto was not
or is not made pursuant to Section 3(d) hereof), in respect of that number of
shares of Common Stock into which such share of Series C Preferred Stock might
have been converted immediately prior to such reorganization, reclassification,
consolidation, merger, sale or conveyance; and, in any such case, appropriate
adjustments (as determined in good faith by the Board of Directors of the
Corporation) shall be made to assure that the provisions set forth herein
(including provisions with respect to changes in, and other adjustments of, the
Conversion Price) shall thereafter be applicable, as nearly as reasonably may be
practicable, in relation to any securities or other assets thereafter
deliverable upon the conversion of the Series C Preferred Stock.

              (g)  Mechanics of Conversion.  The option to convert shall be
exercised by surrendering for such purpose to the Corporation, at any place
where the Corporation shall maintain a transfer agent for its Common Stock,
certificates representing the shares to be converted, duly endorsed in blank or
accompanied by proper instruments of transfer, and at the time of such
surrender, the Person in whose name any certificate for shares of Common Stock
shall be issuable upon such conversion shall be deemed to be the holder of
record of such shares of Common Stock on such date, notwithstanding that the
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share register of the Corporation shall then be closed or that the certificates
representing such Common Stock shall not then be actually delivered to such
Person.

              (h)  Certificate as to Adjustments. Whenever the Conversion Price
and the number of shares of Common Stock issuable, or the securities or other
property deliverable upon the conversion of the Series C Preferred Stock, shall
be adjusted pursuant to the provisions hereof, the Corporation shall promptly
give written notice thereof to each holder of shares of Series C Preferred Stock
at such holder's address as it appears on the transfer books of the Corporation
and shall forthwith file, at its principal executive office and with any
transfer agent or agents for the Series C Preferred Stock and the Common Stock,
a certificate, signed by the President or one of the Vice Presidents of the
Corporation, and by its Chief Financial Officer, its Treasurer or one of its
Assistant Treasurers, stating the adjusted Conversion Price, the number of
shares of Common Stock issuable, or the securities or other property
deliverable, per share of Series C Preferred Stock converted, calculated to the
nearest one-tenth of one cent or to the nearest one-hundredth of a share and
setting forth in reasonable detail the method of calculation and the facts
requiring such adjustment and upon which such calculation is based. Each
adjustment shall remain in effect until a subsequent adjustment hereunder is
required.

              (i)  Reservation of Common Stock. The Corporation shall at all
times reserve and keep available for issuance upon the conversion of the shares
of Series C Preferred Stock the maximum number of its authorized but unissued
shares of Common Stock as is reasonably anticipated to be sufficient to permit
the conversion of all outstanding shares of Series C Preferred Stock and shall
take all action required to increase the authorized number of shares of Common
Stock if at any time there shall be insufficient authorized but
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unissued shares of Common Stock to permit such reservation or to permit the
conversion of all outstanding shares of Series C Preferred Stock.

              (j)  No Conversion Charge or Tax. The issuance and delivery of
certificates for shares of Common Stock upon the conversion of shares of Series
C Preferred Stock shall be made without charge to the holder of shares of Series
C Preferred Stock for any issue or transfer tax, or other incidental expense in
respect of the issuance or delivery of such certificates or the securities
represented thereby, all of which taxes and expenses shall be paid by the
Corporation.

          6.  Redemption.

              (a)  Redemption Demand. Upon the demand of the holders of at least
75% of the outstanding shares of Parity Stock made in writing to the Corporation
at any time after October 1, 2008 (a "Redemption Demand"), the Corporation shall
be required to redeem (i) all of the shares of Series C Preferred Stock, at a
redemption price per share equal to the Liquidation Preference per share plus an
amount in cash equal to the product of (x) 15% of the then current Liquidation
Preference, multiplied by (y) a fraction, the numerator of which is the actual
number of days from (and including) the most recent Dividend Payment Date to
(but excluding) the Redemption Date, and the denominator of which is 365 (the
"Redemption Price"), and (ii) all of the outstanding shares of each other series
of Parity Stock in accordance with the terms of such security, but only, in each
case, to the extent that (A) funds are legally available therefor and (B) such
redemption would not cause a default or event of default under any documents
governing the Corporation's outstanding indebtedness or lines of credit. If at
the time a Demand Notice is received by the Corporation funds are legally
available to redeem some but not all of the outstanding shares of Parity Stock,
including, without limitation, the shares of Series C Preferred Stock, then
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the Corporation shall redeem as many shares of Parity Stock, including, without
limitation, the shares of Series C Preferred Stock, as its legally available
funds permit.

              (b)  Redemption at Corporation's Option.  On and after the date on
which fewer than 10% of the shares of Series C Preferred Stock issued on the
Series C Preferred Stock Issue Date remain outstanding, the Corporation shall
have the right, at its sole option and election, to redeem all of the
outstanding shares of Series C Preferred Stock, on not less than 30 days' notice
of the date of redemption (any such redemption date pursuant to this Section
6(b) being referred to herein as an "Optional Redemption Date") at a redemption
price per share equal to the Liquidation Preference per share plus an amount in
cash equal to the product of (x) 15% of the then current Liquidation Preference,
multiplied by (y) a fraction, the numerator of which is the actual number of
days from (and including) the most recent Dividend Payment Date to (but
excluding) the Optional Redemption Date, and the denominator of which is 365
(the "Optional Redemption Price"), but only to the extent that (A) funds are
legally available therefor, (B) such redemption would not cause a default or
event of default under any documents governing the Corporation's outstanding
indebtedness or lines of credit, and (C) the Corporation redeems all outstanding
shares of the other series of Parity Stock to the extent permitted to do so in
accordance with the terms thereof.
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              (c)  Redemption Notice. At least 30 days and not more than 60 days
before a Redemption Date, the Corporation shall mail a notice of Redemption (the
"Redemption Notice") by first class mail, postage prepaid, to each holder of
record on the record date fixed for such redemption at such holder's address as
it appears on the stock register of the Corporation; provided, however, that
neither the failure to give such notice nor any deficiency therein shall affect
the validity of the procedure for the redemption of any shares of Series C
Preferred Stock to be redeemed except as to the holder or holders to whom the
Corporation has failed to give said notice or except as to the holder or holders
whose notice was defective. The Redemption Notice shall be mailed by the
Corporation to the holders of the shares of Series C Preferred Stock (and in the
case of a Demand Redemption, such Redemption Notice shall be mailed not later
than 10 days after receipt by the Corporation of a Redemption Demand) and shall
state:

                   (i)   that the Corporation is redeeming shares of Series C
     Preferred Stock in response to a Redemption Demand or in connection with an
     Optional Redemption, as the case may be;

                   (ii)  the Redemption Price;

                   (iii) in the case of a Demand Redemption, whether funds are
     legally available to redeem all or less than all of the outstanding shares
     of the Series C Preferred Stock and the total number of shares of the
     Series C Preferred Stock being redeemed;

                   (iv)  if, in the case of a Demand Redemption, less than all
     of the shares of Series C Preferred Stock held by such holder are to be
     redeemed, the number of shares of Series C Preferred Stock held by such
     holder, as of the appropriate record date, that the Corporation intends to
     redeem;
<PAGE>

                                                                              19

                   (v)   the Redemption Date;

                   (vi)  that the holder is to surrender to the Corporation, at
     the place or places where certificates for shares of Series C Preferred
     Stock are to be surrendered for redemption, in the manner and at the price
     designated, his or her certificate or certificates representing the shares
     of Series C Preferred Stock to be redeemed; and

                   (vii) that dividends on the shares of the Series C Preferred
     Stock to be redeemed shall cease to accrue and increase on such Optional
     Redemption Date unless the Corporation defaults in the payment of the
     Optional Redemption Price.

              (d)  Pro-Rata Redemption. In the event of a redemption pursuant to
Section 6(a) of less than all of the then outstanding shares of Parity Stock,
the Corporation shall effect such redemption pro rata according to the number of
shares held by each holder of Parity Stock.

              (e)  Surrender of Shares; Payment. Each holder of Series C
Preferred Stock shall surrender the certificate or certificates representing
such shares of Series C Preferred Stock to the Corporation, duly endorsed, in
the manner and at the place designated in the Redemption Notice, and on the
Redemption Date or the Optional Redemption Date the full Redemption Price or
Optional Redemption Price, as the case may be, for such shares shall be payable
in cash to the Person whose name appears on such certificate or certificates as
the owner thereof, and each surrendered certificate shall be canceled and
retired. In the event that less than all of the shares represented by any such
certificate are redeemed, a new certificate shall be issued by the Corporation
representing the unredeemed shares.
<PAGE>

                                                                              20

              (f)  Effect on Redeemed Shares. Unless the Corporation defaults in
the payment in full of the Redemption Price or the Optional Redemption Price,
dividends on the Series C Preferred Stock called for redemption shall cease to
accumulate and increase on the Redemption Date or Optional Redemption Date, as
the case may be, and the holders of such redeemed shares shall cease to have any
further rights with respect thereto on the Redemption Date or Optional
Redemption Date, other than the right to receive the Redemption Price or
Optional Redemption Price, as the case may be.

          7.  Voting Rights.

              (a)  The holders of Series C Preferred Stock, except as otherwise
required under Delaware law or as set forth in Sections 7(b) and (c) below,
shall not be entitled or permitted to vote on any matter required or permitted
to be voted upon by the stockholders of the Corporation.

              (b)  So long as the Series C Preferred Stock is outstanding, each
share of Series C Preferred Stock shall entitle the holder thereof to vote, in
person or by proxy, at a special or annual meeting of stockholders, on all
matters entitled to be voted on by holders of Common Stock voting together as a
single class with other shares entitled to vote thereon. With respect to any
such vote, each share of Series C Preferred Stock shall entitle the holder
thereof to cast that number of votes per share as is equal to the number of
votes that such holder would be entitled to cast had such holder converted its
shares of Series C Preferred Stock into shares of Common Stock on the record
date for determining the stockholders of the Corporation eligible to vote on any
such matters. The foregoing notwithstanding, if the acquisition by any holder of
shares of Series C Preferred Stock would require such holder and/or the
Corporation to comply with the pre-merger notification requirements of the Hart-
Scott-Rodino Antitrust Improvement Act of 1976, as amended (the
<PAGE>

                                                                              21

"HSR Act"), then the shares of Series C Preferred Stock acquired by such holder
shall not entitle the holder thereof to vote, in person or by proxy, at any
special or annual meeting of stockholders, on any matter covered by this Section
7(b), but not with respect to matters covered by Section 7(c), unless and until
(i) such holder and the Corporation have complied with the requirements of the
HSR Act and (ii) the applicable waiting period under the HSR Act shall have
expired or been terminated.

               (c) Unless the consent or approval of a greater number of shares
shall then be required by law, the affirmative vote of the holders of at least
seventy-five percent (75%) of the outstanding shares of Series C Preferred
Stock, voting as a single class, in person or by proxy, at a special or annual
meeting of stockholders called for the purpose or by written consent, shall be
necessary to authorize, adopt or approve an amendment to this Certificate of
Designation or the Certificate of Incorporation of the Corporation that would
alter or change the powers, preferences or special rights of the shares of
Series C Preferred Stock so as to affect the shares of Series C Preferred Stock
adversely.

          8.  Reissuance of Series C Preferred Stock.  Shares of Series C
Preferred Stock that have been issued and reacquired in any manner, including
shares purchased or redeemed or exchanged, shall (upon compliance with any
applicable provisions of the laws of Delaware) have the status of authorized and
unissued shares of preferred stock undesignated as to series and may be
redesignated and reissued as part of any series of preferred stock (other than
Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock).

          9.  Business Day.  If any payment or redemption shall be required by
the terms hereof to be made on a day that is not a Business Day, such payment or
redemption  shall be made on the immediately succeeding Business Day.
<PAGE>

                                                                              22

          10.  Definitions.  As used in this Certificate of Designation, the
following terms shall have the following meanings (with terms defined in the
singular having comparable meanings when used in the plural and vice versa),
unless the context otherwise requires:

          "Applicable Price" shall mean the higher of (a) the Current Market
Price per share of Common Stock on the applicable record or other relevant date
and (b) the then current Conversion Price.

          "Board of Directors" shall have the Board of Directors of the
Corporation.

          "Business Day" means any day except a Saturday, a Sunday, or other day
on which commercial banks in the State of New York are authorized or required by
law or executive order to close.

          "Closing Price" shall mean, with respect to the Common Stock for any
day, (a) the last reported sale price regular way or, in case no such sale takes
place on such day, the average of the closing bid and asked prices regular way,
in either case as reported on the principal national securities exchange on
which such Common Stock is listed or admitted for trading or (b) if the Common
Stock is not listed or admitted for trading on any national securities exchange,
the last reported sale price or, in case no such sale takes place on such day,
the average of the highest reported bid and the lowest reported asked quotation
for the Common Stock, in either case as reported on the Nasdaq Stock Market,
Inc. or a similar service if the Nasdaq Stock Market, Inc. is no longer
reporting such information.

          "Common Stock" shall have the meaning ascribed to it in Section 2
hereof.

          "Conversion Consideration" shall have the meaning ascribed to it in
Section 5(c)(ii) hereof.

          "Conversion Price" shall have the meaning ascribed to it in Section
5(a).
<PAGE>

                                                                              23

          "Corporation" shall mean Outboard Marine Corporation, a Delaware
corporation.

          "Current Market Price" shall mean, with respect to the Common Stock on
any date, the average of the daily Closing Prices per share of Common Stock for
the 10 consecutive trading days commencing 15 days before such date.  If on any
such date the shares of Common Stock are not listed or admitted for trading on
any national securities exchange or quoted on the Nasdaq Stock Market, Inc. or a
similar service, the Current Market Price for such shares shall be the fair
market value of such shares on such date as determined in good faith by the
Board of Directors of the Corporation and shall be the value which is agreed
upon by 75% of the members thereof, or if 75% of the members of the Board of
Directors of the Corporation are unable to agree upon the value of such
consideration, the value thereof shall be determined by an independent
investment bank of a nationally recognized stature that is selected by the
holders of 75% of the members of the Board of Directors.

          "Dividend Payment Date" means each of March 31, June 30, September 30
and December 31 of each year.

          "Dividend Period" means the Initial Dividend Period and, thereafter,
each Quarterly Dividend Period.

          "HSR Act" shall have the meaning ascribed to it in Section 7(b).

          "Initial Dividend Period" means the dividend period commencing on, and
including, the Series C Preferred Stock Issue Date and ending on, and excluding,
the first Dividend Payment Date to occur thereafter.

          "Initial Liquidation Preference" shall have the meaning ascribed to it
in Section 1 hereof.

          "Junior Stock" shall have the meaning ascribed to it in Section 2
hereof.
<PAGE>

                                                                              24

          "Liquidation Preference" shall have the meaning ascribed to it in
Section 1 hereof.

          "Parity Stock" means the Series B Preferred Stock and Series C
Preferred Stock.

          "Person" means any individual, firm, corporation, partnership, limited
liability company, trust, incorporated or unincorporated association, joint
venture, joint stock company, governmental body or other entity of any kind.

          "Quarterly Dividend Period" shall mean the quarterly periods
commencing on, and including, each Dividend Payment Date and ending on, and
excluding, each next Dividend Payment Date occurring immediately thereafter,
respectively.

          "Redemption Date" means, with respect to any shares of Series C
Preferred Stock, the date on which such shares are to be redeemed by the
Corporation pursuant to Section 6 hereof.

          "Redemption Demand" shall have the meaning ascribed to it in Section
6(a)

          "Redemption Notice" shall have the meaning ascribed to it in Section
6(c) hereof.

          "Redemption Price" shall have the meaning ascribed to it in Section
6(a) hereof.

          "Series A Preferred Stock" means the outstanding shares of the
Corporation's Series A Convertible Preferred Stock, par value $.01 per share.

          "Series B Preferred Stock" means the shares of the Corporation's
Series B Convertible Preferred Stock, par value $.01 per share, that may from
time to time be outstanding.
<PAGE>

                                                                              25

          "Series C Preferred Stock" shall have the meaning ascribed to it in
Section 1 hereof.

          "Series C Preferred Stock Issue Date" means the date on which the
Series C Preferred Stock is originally issued by the Corporation.

                 [Remainder of Page Left Intentionally Blank]
<PAGE>

                                                                              26

          IN WITNESS WHEREOF, OUTBOARD MARINE CORPORATION has caused this
certificate to be duly executed by its Vice President and Controller this 31st
day of May, 2000.

                         OUTBOARD MARINE CORPORATION

                         By: /s/ James Pekarek
                             ---------------------------------
                             Name: James Pekarek
                             Title: Vice President and Controller<PAGE>

                                                                    EXHIBIT 4.25

                PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT

          PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT, dated July 19, 2000
(this "Agreement"), among Outboard Marine Corporation, a Delaware corporation
(the "Company") Quantum Industrial Partners LDC ("QIP") and Greenlake Holdings V
LLC ("Greenlake" and together with QIP, the "Purchasers").

          WHEREAS, upon the terms and conditions set forth in this Agreement,
the Company proposes to issue and sell to each of the Purchasers, for the
aggregate purchase price set forth opposite such Purchaser's name on Schedule
2.1 hereto, (i) the number of shares of the Company's Series D Preferred Stock
set forth opposite such Purchaser's name on Schedule 2.1 hereto, and (ii) a
warrant (the "Warrant") to purchase, subject to the terms and conditions
thereof, the aggregate number of shares (subject to adjustment) of Common Stock,
par value $.01 per share, of the Company (the "Common Stock") set forth opposite
such Purchaser's name on Schedule 2.1 hereto, at an exercise price of $.01 per
share (subject to adjustment), containing the terms and conditions set forth in
the form of warrant attached hereto as Exhibit A. The shares of Series D
Preferred Stock to be sold pursuant hereto are collectively referred to as the
"Purchased Shares" and the Warrants to be sold pursuant hereto are collectively
referred to as the "Warrants."

          NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth herein and for good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the parties hereto agree as
follows:

                                   ARTICLE I

                                  DEFINITIONS
                                  -----------

          I.1 Definitions. As used in this Agreement, and unless the context
requires a different meaning, the following terms have the meanings indicated:

          "Affiliate" shall mean any Person who is an "affiliate" (as defined in
Rule 12b-2 of the General Rules and Regulations under the Exchange Act) of, and
any Person controlling, controlled by, or under common control with, any
Purchaser. For the purposes of this Agreement, "control" includes the ability to
have investment discretion through contractual means or by operation of law.

          "Agreement" means this Agreement as the same may be amended,
supplemented or modified in accordance with the terms hereof.
<PAGE>

                                                                               2

          "Audited Financial Statements" has the meaning set forth in Section
3.8 of this Agreement.

          "Board of Directors" means the Board of Directors of the Company.

          "Business Day" means any day other than a Saturday, Sunday or other
day on which commercial banks in the State of New York are authorized or
required by law or executive order to close.

          "By-laws" means the by-laws of the Company in effect on the Closing
Date, as the same may be amended from time to time.

          "Certificate of Designation" means the Certificate of the Powers,
Designations, Preferences and Rights of the Series D Convertible Preferred
Stock, Par Value $.01 Per Share of the Company, as filed by the Company with the
Secretary of State of Delaware on July __, 2000, a true and correct copy of
which is annexed as Exhibit B hereto.

          "Certificate of Designation Amendments" means each of a Certificate of
Amendment to the Certificate of Designation of the Series A Preferred Stock
substantially in the form attached hereto as Exhibit F and a Certificate of
Amendment to the Certificate of Designation of the Series C Preferred Stock
substantially in the form attached hereto as Exhibit G.

          "Certificate of Incorporation" means the Certificate of Incorporation
of the Company, as the same may be amended from time to time.

          "Claims" has the meaning set forth in Section 7.1 of this Agreement.

          "Closing" has the meaning set forth in Section 2.3 of this Agreement.

          "Closing Date" has the meaning set forth in Section 2.3 of this
Agreement.

          "Code" means the Internal Revenue Code of 1986, as amended, or any
successor statute thereto.

          "Commission" means the United States Securities and Exchange
Commission or any similar agency then having jurisdiction to enforce the
Securities Act.

          "Common Stock" has the meaning set forth in the recitals to this
Agreement.

          "Company" has the meaning set forth in the preamble to this Agreement.

          "Condition of the Company" means the assets, business, properties,
prospects, operations or financial condition of the Company.
<PAGE>

                                                                               3

          "Contingent Obligation" means, as applied to any Person, any direct or
indirect liability of that Person with respect to any Indebtedness, lease,
dividend, guaranty, letter of credit or other obligation, contractual or
otherwise (the "primary obligation") of another Person (the "primary obligor"),
whether or not contingent, (a) to purchase, repurchase or otherwise acquire such
primary obligations or any property constituting direct or indirect security
therefor, (b) to advance or provide funds (i) for the payment or discharge of
any such primary obligation, or (ii) to maintain working capital or equity
capital of the primary obligor or otherwise to maintain the net worth or
solvency or any balance sheet item, level of income or financial condition of
the primary obligor, (c) to purchase property, securities or services primarily
for the purpose of assuring the owner of any such primary obligation of the
ability of the primary obligor to make payment of such primary obligation, or
(d) otherwise to assure or hold harmless the owner of any such primary
obligation against loss or failure or inability to perform in respect thereof.
The amount of any Contingent Obligation shall be deemed to be an amount equal to
the stated or determinable amount of the primary obligation in respect of which
such Contingent Obligation is made or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof.

          "Contractual Obligations" means, as to any Person, any provision of
any security issued by such Person or of any agreement, undertaking, contract,
indenture, mortgage, deed of trust or other instrument to which such Person is a
party or by which it or any of its property is bound.

          "Copyrights" means any foreign or United States copyright
registrations and applications for registration thereof, and any non-registered
copyrights.

          "Exchange Act" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations of the Commission thereunder.

          "GAAP" means United States generally accepted accounting principles in
effect from time to time.

          "Governmental Authority" means the government of any nation, state,
city, locality or other political subdivision thereof, any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government, and any corporation or other entity owned or
controlled, through stock or capital ownership or otherwise, by any of the
foregoing.

          "Greenlake" has the meaning set forth in the recitals to this
Agreement.

          "Greenlake II" means Greenlake Holdings II LLC, a Delaware limited
liability company.

          "Greenlake III" means Greenlake Holdings III LLC, a Delaware limited
liability company.
<PAGE>

                                                                               4

          "Greenlake IV" means Greenlake Holdings IV LLC, a Delaware limited
liability company.

          "Indebtedness" means, as to any Person, (a) all obligations of such
Person for borrowed money (including, without limitation, reimbursement and all
other obligations with respect to surety bonds, letters of credit and bankers'
acceptances, whether or not matured), (b) all obligations of such Person
evidenced by notes, bonds, debentures or similar instruments, (c) all
obligations of such Person to pay the deferred purchase price of property or
services, except trade accounts payable and accrued commercial or trade
liabilities arising in the ordinary course of business, (d) all interest rate
and currency swaps, caps, collars and similar agreements or hedging devices
under which payments are obligated to be made by such Person, whether
periodically or upon the happening of a contingency, (e) all indebtedness
created or arising under any conditional sale or other title retention agreement
with respect to property acquired by such Person (even though the rights and
remedies of the seller or lender under such agreement in the event of default
are limited to repossession or sale of such property), (f) all obligations of
such Person under leases which have been or should be, in accordance with GAAP,
recorded as capital leases, (g) all indebtedness secured by any Lien (other than
Liens in favor of lessors under leases other than leases included in clause (f))
on any property or asset owned or held by that Person regardless of whether the
indebtedness secured thereby shall have been assumed by that Person or is non-
recourse to the credit of that Person, and (h) any Contingent Obligation of such
Person.

          "Indemnified Party" has the meaning set forth in Section 7.1 of this
Agreement.

          "Indemnifying Party" has the meaning set forth in Section 7.1 of this
Agreement.

          "Intellectual Property" has the meaning set forth in Section 3.10 of
this Agreement.

          "Interim Financial Statements" has the meaning set forth in Section
3.8 of this Agreement.

          "Internet Assets" means any Internet domain names and other computer
user identifiers and any rights in and to sites on the worldwide web, including
rights in and to any text, graphics, audio and video files and html or other
code incorporated in such sites.

          "Knowledge" means the knowledge of the Company.

          "Lien" means any mortgage, deed of trust, pledge, hypothecation,
assignment, encumbrance, lien (statutory or other) or preference, priority,
right or other security interest or preferential arrangement of any kind or
nature whatsoever (excluding preferred stock and equity related preferences).

          "Losses" has the meaning set forth in Section 7.1 of this Agreement.
<PAGE>

                                                                               5

          "Material Adverse Effect" means a material adverse effect on (i) the
business, operations, financial condition, assets, prospects or properties of
the Company and its subsidiaries taken as a whole, or (ii) the ability of the
Company to perform its obligations under the Transaction Documents, or (iii) the
validity or enforceability of the Transaction Documents.

          "May 2 Agreement" means that certain Subordinated Note and Warrant
Purchase Agreement, dated May 2, 2000, among the Company, QIP and Greenlake, as
amended by that certain Preferred Stock and Warrant Purchase Agreement, dated
May 31, 2000.

          "Orders" has the meaning set forth in Section 3.2 of this Agreement.

          "Patents" means any foreign or United States patents and patent
applications, including any divisions, continuations, continuations-in-part,
substitutions or reissues thereof, whether or not patents are issued on such
applications and whether or not such applications are modified, withdrawn or
resubmitted.

          "Permits" has the meaning set forth in Section 3.5 of this Agreement.

          "Person" means any individual, firm, corporation, partnership, trust,
incorporated or unincorporated association, joint venture, joint stock company,
limited liability company, Governmental Authority or other entity of any kind,
and shall include any successor (by merger or otherwise) of such entity.

          "Purchasers" has the meaning set forth in the preamble to this
Agreement.

          "QIP" has the meaning set forth in the recitals to this Agreement.

          "Registration Rights Agreement" means the Registration Rights
Agreement, dated January 28, 2000,  as amended prior to the date hereof, among
the Company, QIP, Greenlake II and Greenlake III.

          "Requirements of Law" means, as to any Person, any law, statute,
treaty, rule, regulation, right, privilege, qualification, license or franchise
or determination of an arbitrator or a court or other Governmental Authority or
stock exchange, in each case applicable or binding upon such Person or any of
its property or to which such Person or any of its property is subject or
pertaining to any or all of the transactions contemplated or referred to herein.

          "Securities" means the shares of Series D Preferred Stock and the
Warrants issuable hereunder, the shares of Common Stock issuable upon conversion
of the Series D Preferred Stock, and the Warrant Shares.
<PAGE>

                                                                               6

          "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations of the Commission thereunder.

          "Series A Preferred Stock" means the shares of Series A Convertible
Preferred Stock, par value $.01 per share, of the Company having the powers,
designations, preferences and rights set forth in the Certificate of the Powers,
Designations, Preferences and Rights of the Series A Convertible Preferred
Stock, Par Value $.01 Per Share of the Company, as filed by the Company with the
Secretary of State of Delaware on January 28, 2000, as amended.

          "Series B Preferred Stock" means the shares of Series B Convertible
Preferred Stock, par value $.01 per share, of the Company having the powers,
designations, preferences and rights set forth in the Series B Certificate of
Designation annexed hereto as Exhibit C, and issuable by the Company upon
conversion of the Subordinated Notes in accordance with the terms set forth in
the May 2 Agreement, as amended hereby, and in the Subordinated Notes.

          "Series C Preferred Stock" means the shares of Series C Convertible
Preferred Stock, par value $.01 per share, of the Company having the powers,
designations, preferences and rights set forth in the Certificate of the Powers,
Designations, Preferences and Rights of the Series C Convertible Preferred
Stock, Par Value $.01 Per Share of the Company, as filed by the Company with the
Secretary of State of Delaware on May 31, 1999, as amended.

          "Series D Preferred Stock" means the shares of Series D Convertible
Preferred Stock, par value $.01 per share, of the Company having the powers,
designations, preferences and rights set forth in the Certificate of
Designation.

          "Software" means any computer software programs, source code, object
code, data and documentation, including, without limitation, any computer
software programs that incorporate and run the Company's pricing models,
formulae and algorithms.

          "Stock Equivalents" means any security or obligation which is by its
terms convertible into or exchangeable for shares of common stock or other
capital stock or securities of the Company, and any option, warrant or other
subscription or purchase right with respect to common stock or such other
capital stock or securities.

          "Stockholders Agreement" means the Stockholders Agreement dated
January 28, 2000, as amended prior to the date hereof, among the Company, QIP,
Greenlake II and Greenlake III.

          "Third Registration Rights Agreement Amendment" means an amendment to
the Registration Rights Agreement in substantially the form of Exhibit D hereto.

<PAGE>

                                                                               7

          "Third Stockholders Agreement Amendment" means an amendment to the
Stockholders Agreement in substantially the form of Exhibit E hereto.

          "Trade Secrets" means any trade secrets, research records, processes,
procedures, manufacturing formulae, technical know-how, technology, blue prints,
designs, plans, inventions (whether patentable and whether reduced to practice),
invention disclosures and improvements thereto.

          "Trademarks" means any foreign or United States trademarks, service
marks, trade dress, trade names, brand names, designs and logos, corporate
names, product or service identifiers, whether registered or unregistered, and
all registrations and applications for registration thereof.

          "Transaction Documents" means, collectively, this Agreement, the
Warrants, the Third Registration Rights Agreement Amendment and the Third
Stockholders Agreement Amendment.

          "Warrant" has the meaning set forth in the recitals to this Agreement.

          "Warrant Shares" has the meaning set forth in Section 2.1 of this
Agreement.

                                  ARTICLE II

               PURCHASE AND SALE OF PREFERRED STOCK AND WARRANTS
               -------------------------------------------------

          II.1  Purchase and Sale of Preferred Stock and Warrants.  Subject to
the terms and conditions herein set forth, the Company agrees to issue and sell
to each Purchaser, and each Purchaser agrees to purchase from the Company, for
the aggregate purchase price set forth opposite such Purchaser's name on
Schedule 2.1 hereto, on the Closing Date (a) the number of shares of Series D
Preferred Stock set forth opposite such Purchaser's name on Schedule 2.1 hereto,
and (ii) a Warrant to purchase the aggregate number of shares of Common Stock
set forth opposite such Purchaser's name on Schedule 2.1 hereto (all of the
shares of Common Stock issuable upon exercise of the Warrants being purchased
pursuant hereto being referred to herein as the "Warrant Shares").

          II.2  Use of Proceeds.  The Company shall use the proceeds from the
sale of the Purchased Shares and the Warrants to the Purchasers for general
corporate purposes, including to fund the Company's working capital and to make
capital expenditures.

          II.3  Closing.  The closing of the sale and purchase of the Purchased
Shares and Warrants (the "Closing") shall take place at the offices of Paul,
Weiss, Rifkind, Wharton & Garrison, at 10:00 a.m., local time, on July __, 2000
or at such other time, place and date that the Company and the Purchasers may
agree in writing (the "Closing Date"). On the Closing Date, the Company shall
deliver to each Purchaser (a) a certificate
<PAGE>

                                                                               8

evidencing the number of shares of Series D Preferred Stock set forth beside
such Purchaser's name in Schedule 2.1 hereto and (b) a Warrant to purchase the
number of Warrant Shares set forth beside such Purchaser's name in Schedule 2.1
hereto against delivery by such Purchaser to the Company of the aggregate
purchase price therefor as set forth beside such Purchaser's name in Schedule
2.1 hereto by wire transfer of immediately available funds.

                                  ARTICLE III

                 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
                 ---------------------------------------------

          The Company represents and warrants to each of the Purchasers as
follows:

          III.1  Corporate Existence and Power.  The Company (a) is a
corporation duly organized, validly existing and in good standing under the laws
of the jurisdiction of its incorporation; (b) has all requisite power and
authority to own and operate its property, to lease the property it operates as
lessee and to conduct the business in which it is currently, or is proposed to
be, engaged; and (c) is duly qualified as a foreign corporation, licensed and in
good standing under the laws of each jurisdiction in which its ownership, lease
or operation of property or the conduct of its business requires such
qualification, except where the failure to so qualify would not, individually or
in the aggregate, have a Material Adverse Effect.  The Company has the corporate
power and authority to execute, deliver and perform its obligations under this
Agreement and each of the other Transaction Documents.

          III.2  Authorization; No Contravention.  The execution, delivery and
performance by the Company of this Agreement and each of the other Transaction
Documents and of each of the transactions contemplated hereby and thereby,
including, without limitation, the sale, issuance and delivery of the
Securities, (a) have been duly authorized by all necessary corporate action of
the Company; (b) do not contravene the terms of the Certificate of Incorporation
or the By-laws; (c) do not violate, conflict with or result in any breach or
contravention of, or the creation of any Lien under, any Contractual Obligation
of the Company or any Requirement of Law applicable to the Company, except as
would not have a Material Adverse Effect; and (d) do not violate any judgment,
injunction, writ, award, decree or order of any nature (collectively, "Orders")
of any Governmental Authority against, or binding upon, the Company.

          III.3  Governmental Authorization; Third Party Consents. No approval,
consent, exemption, authorization or other action by, or notice to, or filing
with, any Governmental Authority or any other Person, and no lapse of a waiting
period under a Requirement of Law, is necessary or required in connection with
the execution, delivery or performance (including, without limitation, the sale,
issuance and delivery of the Securities) by, or enforcement against, the Company
of this Agreement and the other Transaction Documents or the transactions
contemplated hereby and thereby.
<PAGE>

                                                                               9

          III.4  Binding Effect.  This Agreement and each of the other
Transaction Documents have been duly executed and delivered by the Company, and
constitute the legal, valid and binding obligations of the Company, enforceable
against the Company in accordance with their terms, except as enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, fraudulent
conveyance or transfer, moratorium or similar laws affecting the enforcement of
creditors' rights generally and by general principles of equity relating to
enforceability (regardless of whether considered in a proceeding at law or in
equity).

          III.5  Compliance with Laws.

               (a) The Company is in compliance with all Requirements of Law and
all Orders issued by any court or Governmental Authority against the Company in
all material respects.

               (b) (i) The Company has all licenses, permits and approvals of
any Governmental Authority (collectively, "Permits") that are necessary for the
conduct of the business of the Company; (ii) such Permits are in full force and
effect; and (iii) no violations are or have been recorded in respect of any
Permit, in each case, except as would not, individually or in the aggregate,
have a Material Adverse Effect.

          III.6  Capitalization.  On the Closing Date, the authorized capital
stock of the Company shall consist of (i) 42,000,000 shares of Common Stock, of
which 20,439,531 shares shall be issued and outstanding, (ii) 650,000 shares of
Series A Preferred Stock, all of which are issued and outstanding, (iii) 200,000
shares of Series C Preferred Stock, all of which are issued and outstanding,
(iii) 200,000 shares of Series D Preferred Stock, all of which will be issued in
accordance with this Agreement, and (iv) 150,000 shares of undesignated "blank
check" preferred stock, _______ of which are reserved for future issuance upon
conversion of the Subordinated Notes into shares of Series B Preferred Stock.
The Company has reserved an aggregate of (1) 4,642,857 shares of Common Stock
for issuance upon conversion of the Series A Preferred Stock, (2) 3,200,000
shares of Common Stock for issuance upon conversion of the Series C Preferred
Stock, (3) 5,750,000 shares of Common Stock for issuance upon exercise of common
stock purchase warrants issued under that certain Series A Convertible Preferred
Stock and Warrant Purchase Agreement, dated January 28, 2000, among the Company,
QIP and Greenlake Holdings II LLC, (4) 330,000 shares of Common Stock for
issuance upon exercise of common stock purchase warrants issued under the May 2
Agreement, (5) 846,154 shares of Common Stock for issuance upon exercise of the
warrants under that certain Preferred Stock and Warrant Purchase Agreement,
dated May 31, 2000, among the Company, QIP and Greenlake Holdings III LLC, (6)
846,154 shares of Common Stock for issuance upon exercise of the Warrants, (7)
3,200,000 shares of Common Stock for issuance upon conversion of the Purchased
Shares, and (8) an aggregate of 5,600,000 shares of Common Stock for issuance
upon the exercise of stock options issued or issuable under the Outboard Marine
Corporation Personal Rewards and Opportunities Plan.  In addition, the Company
has agreed that upon issuance of any shares of Series B Preferred Stock, the
Company shall reserve such additional number of shares of
<PAGE>

                                                                              10

Common Stock as may be necessary in order to permit the conversion of the shares
of Series B Preferred Stock in accordance with the terms of such stock. Except
as described in the immediately preceding three sentences or as provided in the
Transaction Documents, on the Closing Date, there will be no options, warrants,
conversion privileges, subscription or purchase rights or other rights
outstanding to purchase or otherwise acquire (i) any authorized but unissued,
unauthorized or treasury shares of the Company's capital stock, (ii) any Stock
Equivalents or (iii) other securities of the Company. The issuance of the shares
of Series D Preferred Stock and the Warrants has been duly authorized. Assuming
the accuracy of and compliance with each Purchaser's representations, warranties
and covenants contained in Sections 4.5, 4.6, 4.8, 4.9 and 4.10 hereof and in
each of Section 17 of the Warrant, and Sections 2.1 through (and including) 2.4
of the Stockholders Agreement, as amended by the Third Stockholders Agreement
Amendment, the issuance and sale to the Purchasers of the Purchased Shares and
the Warrants, the conversion of the Purchased Shares in accordance with the
terms set forth in the Certificate of Designation, and the exercise of the
Warrants in accordance with the terms thereof will be exempt from the
registration requirements of the Securities Act. The Warrant Shares and the
Purchased Shares and any shares of Common Stock issuable upon conversion of the
Purchased Shares will be, when issued in accordance with the Transaction
Documents, duly authorized, fully paid and non-assessable and not subject to any
preemptive rights or similar rights that have not been satisfied. The issued and
outstanding shares of Common Stock are all duly authorized, validly issued,
fully paid and non-assessable.

          III.7  No Default or Breach; Contractual Obligations.  The Company
has not received notice of a current or pending default and is not in default
under, or with respect to, any Contractual Obligation nor, to the Company's
knowledge, does any condition exist that with notice or lapse of time or both
would constitute a default thereunder, except as would not have a Material
Adverse Effect.  All of the Contractual Obligations are valid, subsisting, in
full force and effect and binding upon the Company and, to the Company's
Knowledge, the other parties thereto. To the Knowledge of the Company, no other
party to any such Contractual Obligation is in material default thereunder, nor
does any condition exist that with notice or lapse of time or both would
constitute a material default by such other party thereunder.

          III.8  Financial Statements. The consolidated balance sheet of the
Company and its subsidiaries as of December 31, 1999, and the related
consolidated statements of income, stockholders equity and cash flows for the
year then ended, including the notes and schedules thereto, certified by KPMG
LLP, independent public accountants, that have been delivered by the Company to
the Purchasers fairly present the consolidated financial position of the Company
and its subsidiaries as at December 31, 1999 and the consolidated results of
operations for the Company and its subsidiaries for the period then ended, in
each case in accordance with generally accepted accounting principles
consistently applied for the period covered thereby (the foregoing consolidated
financial statements at and for the period ending December 31, 1999 are referred
to herein as the "Audited Financial Statements").  The unaudited consolidated
balance sheet of the Company and its subsidiaries as of March 31, 2000 and the
related unaudited consolidated statements of income, stockholders equity and
<PAGE>

                                                                              11

cash flows for the three months then ended, that have been delivered by the
Company to the Purchasers fairly present the consolidated financial position of
the Company and its subsidiaries as at March 31, 2000 and the consolidated
results of operations for the Company and its subsidiaries for the three months
then ended, in each case in accordance with generally accepted accounting
principles applied on a basis consistent with the Audited Financials, except for
normal year-end adjustments and the absence of footnotes required by GAAP (the
foregoing unaudited consolidated financial statements at March 31, 2000 and for
the three months then ending are referred to herein as the "Interim Financial
Statements").

          III.9  No Material Adverse Change; Ordinary Course of Business. Since
December 31, 1999, there has been no change in the financial condition,
operations, business or properties of the Company or any of its subsidiaries
except (x) as disclosed in the Company's reports under the Securities Exchange
Act of 1934, as amended, as filed with the Securities and Exchange Commission
subsequent to December 31, 1999 and prior to the date hereof, (y) as disclosed
in the Interim Financial Statements or (y) changes that individually or in the
aggregate would not reasonably be expected to have a Material Adverse Effect.

          III.10  Private Offering.  No form of general solicitation or general
advertising was used by the Company or its representatives in connection with
the offer or sale of the Purchased Shares or the Warrants.

          III.11  Intellectual Property.

               (a) Except as would not, individually or in the aggregate, have a
Material Adverse Effect: (i) The Company is the owner of all, or has the license
or right to use, sell and license all of, the Copyrights, Patents, Trade
Secrets, Trademarks, Internet Assets, Software and other proprietary rights
(collectively, "Intellectual Property") that are used in connection with its
business as presently conducted or contemplated in its business plan, free and
clear of all Liens.

                    (ii) None of the Intellectual Property of the Company is
subject to any outstanding Order, and no action, suit, proceeding, hearing,
investigation, charge, complaint, claim or demand is pending or, to the
Knowledge of the Company, threatened, which challenges the validity,
enforceability, use or ownership of the item.

                    (iii) To the knowledge of the Company, none of the
Intellectual Property currently sold or licensed by the Company to any Person or
used by or licensed to the Company by any Person infringes upon or otherwise
violates any Intellectual Property rights of others.

                    (iv) No litigation is pending and no Claim has been made
against the Company or, to the Knowledge of the Company, is threatened,
contesting the right of the Company to sell or license to any Person or use the
Intellectual Property presently sold or licensed to such Person or used by the
Company.
<PAGE>

                                                                              12

               (b) To the Knowledge of the Company, no Person is infringing upon
or otherwise violating the Intellectual Property rights of the Company.

          III.12  Broker's, Finder's or Similar Fees.  There are no brokerage
commissions, finder's fees or similar fees or commissions payable by the Company
in connection with the transactions contemplated hereby based on any agreement,
arrangement or understanding with the Company or any action taken by the
Company.

          III.13  Litigation; Observance of Statutes and Orders.

               (a) There are no actions, suits or proceedings pending or, to the
knowledge of the Company, threatened against or affecting the Company or any
subsidiary or any property of the Company or any subsidiary in any court or
before any arbitrator of any kind or before or by any governmental authority
that, individually or in the aggregate, would reasonably be expected to have a
Material Adverse Effect.

               (b) Neither the Company nor any subsidiary is in default under
any order, judgment, decree or ruling of any court, arbitrator or governmental
authority or is in violation of any applicable law, ordinance, rule or
regulation (including without limitation environmental laws) of any governmental
authority, which default or violation, individually or in the aggregate, would
reasonably be expected to have a Material Adverse Effect.

          III.14  Taxes.  The Company and its subsidiaries have filed all
income tax returns that are required to have been filed in any jurisdiction, and
have paid all taxes shown to be due and payable on such returns and all other
taxes and assessments payable by them, to the extent such taxes and assessments
have become due and payable and before they have become delinquent, except for
any taxes and assessments (x) the amount of which, or the failure to file with
respect to which, is not individually or in the aggregate material or (y) the
amount, applicability or validity of which is currently being contested in good
faith by appropriate proceedings and with respect to which the Company or a
subsidiary, as the case may be, has established adequate reserves in accordance
with generally accepted accounting principles.

          III.15  Title to Property; Leases.  The Company and its subsidiaries
have good title to their respective properties, including all such properties
reflected in the audited balance sheet as of December 31, 1999 or purported to
have been acquired by the Company or any subsidiary after said date (except as
sold or otherwise disposed of), in each case free and clear of liens, except for
(x) liens securing the Company's obligations under the Company's credit
facilities and in respect of the Company's borrowings, and (y) those defects in
title and liens that, individually or in the aggregate, would not have a
Material Adverse Effect.  All material leases are valid and subsisting and are
in full force and effect in all material respects except to the extent that the
failure to be so would not, individually or in the aggregate, have a Material
Adverse Effect.
<PAGE>

                                                                              13

                                  ARTICLE IV

               REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS
               ------------------------------------------------

          Each of the Purchasers hereby represents and warrants, severally and
not jointly, to the Company as follows:

          IV.1  Existence and Power.  Such Purchaser (a) is duly organized and
validly existing under the laws of the jurisdiction of its formation and (b) has
the requisite power and authority to execute, deliver and perform its
obligations under this Agreement and each of the other Transaction Agreements to
which it is a party.

          IV.2  Authorization; No Contravention.  The execution, delivery and
performance by such Purchaser of this Agreement and each of the other
Transaction Agreements to which it is a party and the transactions contemplated
hereby and thereby, (a) have been duly authorized by all necessary action, (b)
do not contravene the terms of such Purchaser's organizational documents, or any
amendment thereof, and (c) do not violate, conflict with or result in any breach
or contravention of, or the creation of any Lien under, any Contractual
Obligation of such Purchaser or any Requirement of Law applicable to such
Purchaser, and (d) do not violate any Orders of any Governmental Authority
against, or binding upon, such Purchaser.

          IV.3  Governmental Authorization; Third Party Consents.  No approval,
consent, compliance, exemption, authorization or other action by, or notice to,
or filing with, any Governmental Authority or any other Person, and no lapse of
a waiting period under any Requirement of Law, is necessary or required in
connection with the execution, delivery or performance (including, without
limitation, the purchase of the Purchased Shares and the Warrants) by, or
enforcement against, such Purchaser of this Agreement and each of the other
Transaction Agreements to which it is a party or the transactions contemplated
hereby and thereby.

          IV.4  Binding Effect.  This Agreement and each of the other
Transaction Agreements to which it is a party have been duly executed and
delivered by such Purchaser and constitutes the legal, valid and binding
obligations of such Purchaser, enforceable against it in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, fraudulent conveyance or transfer, moratorium or
similar laws affecting the enforcement of creditors' rights generally or by
equitable principles relating to enforceability (regardless of whether
considered in a proceeding at law or in equity).

          IV.5  Purchase for Own Account.  The shares of Series D Preferred
Stock and the Warrants to be acquired by such Purchaser pursuant to this
Agreement and any shares of Common Stock received upon conversion or exercise of
the shares of Series D Preferred Stock or the Warrants or as a result of the
ownership thereof are being or will be acquired for investment for its own
account and with no intention of distributing, transferring,
<PAGE>

                                                                              14

assigning or reselling or otherwise disposing thereof or any part thereof in any
transaction that would be in violation of the securities laws of the United
States of America, or any state, without prejudice, however, to the rights of
such Purchaser at all times to sell or otherwise dispose of all or any part of
such Securities under an effective registration statement under the Securities
Act, or under an exemption from such registration available under the Securities
Act, and subject, nevertheless, to the disposition of such Purchaser's property
being at all times within its control. If such Purchaser should in the future
decide to dispose of any of the Securities, such Purchaser understands and
agrees that it may do so only once it reasonably satisfies the Company that such
transfer is in compliance with the Securities Act and applicable state
securities laws, as then in effect. Such Purchaser agrees to the imprinting, so
long as required by law, of a legend on certificates representing all of the
Securities to the following effect:

     "THE SECURITIES REPRESENTED BY THIS CERTIFICATE OR RECEIVABLE UPON THE
     EXERCISE OR CONVERSION THEREOF OR AS A RESULT OF THE OWNERSHIP HEREOF  HAVE
     NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
     "ACT"), OR THE SECURITIES LAWS OF ANY STATE.  THE SECURITIES MAY NOT BE
     TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
     SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE
     EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS."

     "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A
     STOCKHOLDERS AGREEMENT AMONG THE COMPANY AND THE ORIGINAL PURCHASERS OF THE
     SECURITIES REPRESENTED HEREBY.  TRANSFEREES OF SUCH SECURITIES SHOULD
     REVIEW SUCH AGREEMENT TO DETERMINE THEIR RIGHTS AND OBLIGATIONS."

          IV.6  Restricted Securities.  Such Purchaser understands that the
Securities are "restricted securities" under the Securities Act and will not be
registered at the time of their issuance under the Securities Act for the reason
that the sale provided for in this Agreement is exempt pursuant to Section 4(2)
of the Securities Act and that the reliance of the Company on such exemption is
predicated in part on such Purchaser's representations set forth herein and on
such Purchaser's agreement to comply with Section 17 of the Warrant, and that
such Securities may be resold without registration under the Securities Act only
in certain limited circumstances defined therein.  Such Purchaser represents
that it is reasonably familiar with such resale restrictions in the Securities
Act, Rule 144 promulgated thereunder, and the other applicable federal and state
rules and regulations.

          IV.7  Broker's, Finder's or Similar Fees.  There are no brokerage
commissions, finder's fees or similar fees or commissions payable by such
Purchaser in connection with the transactions contemplated hereby based on any
agreement, arrangement or understanding with such Purchaser or any action taken
by such Purchaser.
<PAGE>

                                                                              15

          IV.8  Accredited Investor.   Such Purchaser is an "Accredited
Investor" within the meaning of Rule 501 of Regulation D under the Securities
Act, as presently in effect.

          IV.9  Disclosure of Information.  Such Purchaser has carefully
reviewed the representations and warranties concerning the Company contained in
this Agreement and has had adequate opportunity to ask questions and receive
answers from the Company regarding the terms and conditions of the offering of
the Securities and the business, assets, prospects and financial condition of
the Company.

          IV.10  Investment Experience.  Such Purchaser is, or has been, an
investor in securities of companies similar to the Company and has or is
represented by one who has such knowledge and experience in financial or
business matters that it is capable of evaluation of the merits and risks of an
investment in the Securities.

                                   ARTICLE V

                         CONDITIONS TO THE OBLIGATION
                          OF THE PURCHASERS TO CLOSE
                          --------------------------

          The obligation of the Purchasers to purchase the Purchased Shares and
the Warrants, to pay the purchase price therefor at the Closing and to perform
any obligations hereunder shall be subject to the satisfaction as determined by,
or waiver by, the Purchasers of the following conditions on or before the
Closing Date.

          V.1  Representations and Warranties.  The representations and
warranties of the Company contained in Article III hereof shall be true and
correct in all material respects at and on the Closing Date as if made at and on
such date, except to the extent that any representation and warranty expressly
speaks as of an earlier date, in which case such representation and warranty is
true and correct as of such date and except for any activities or transactions
which may have taken place after the date hereof which are contemplated by this
Agreement.

          V.2  Secretary's Certificate.  The Purchasers shall have received a
certificate from the Company, in form and substance satisfactory to the
Purchasers, dated the Closing Date and signed by the Secretary or an Assistant
Secretary of the Company, certifying as to the incumbency and specimen signature
of each officer of the Company executing this Agreement, each other Transaction
Document and any other document delivered in connection herewith on behalf of
the Company.

          V.3  Purchased Shares.  The Company shall have delivered to each of
the Purchasers a stock certificate evidencing the number of shares of Series D
Preferred Stock set forth opposite such Purchaser's name on Schedule 2.1 hereto.
<PAGE>

                                                                              16

          V.4  Warrants.  The Company shall have duly executed and delivered
to each of the Purchasers a Warrant to purchase that number of shares of Common
Stock set forth opposite such Purchaser's name on Schedule 2.1 hereto.

          V.5  Third Registration Rights Agreement Amendment.  The Company
shall have duly executed and delivered the Third Registration Rights Agreement
Amendment.

          V.6  Third Stockholders Agreement Amendment.  The Company shall have
duly executed and delivered the Third Stockholders Agreement Amendment.

          V.7  Certificate of Designation Amendments.  The Company shall have
filed with the Secretary of State of Delaware the Certificate of Designation
Amendments substantially in the form of Exhibit F and Exhibit G hereto.

          V.8  Certificate of Designation.  The Company shall have filed with
the Secretary of State of Delaware the Certificate of Designation.

          V.9  Opinion of Counsel.  The Purchasers shall have received an
opinion of Counsel for the Company, dated the Closing Date, relating to the
transactions contemplated by or referred to herein, substantially in the form
attached hereto as Exhibit H.

                                  ARTICLE VI

                         CONDITIONS TO THE OBLIGATION
                            OF THE COMPANY TO CLOSE
                            -----------------------

          The obligation of the Company to issue and sell the Purchased Shares
and the Warrants and the obligation of the Company to perform its other
obligations hereunder shall be subject to the satisfaction as determined by, or
waiver by, the Company of the following conditions on or before the Closing
Date:

          VI.1  Representations and Warranties.  The representations and
warranties of the Purchasers contained in Article IV hereof shall be true and
correct on at and on the Closing Date as if made at and on such date, except to
the extent that any representation and warranty expressly speaks as of an
earlier date, in which case such representation and warranty is true and correct
as of such date and except for any activities or transactions which may have
taken place after the date hereof which are contemplated by this Agreement.

          VI.2  Payment of Purchase Price.  Each Purchaser shall have paid the
aggregate purchase price for the shares of Series D Preferred Stock and the
Warrant to be purchased by such Purchaser.
<PAGE>

                                                                              17

          VI.3  Third Registration Rights Agreement Amendment.  Each party
thereto other than the Company shall have duly executed and delivered the Third
Registration Rights Agreement Amendment.

          VI.4  Third Stockholders Agreement Amendment.  Each party thereto
other than the Company shall have duly executed and delivered the Third
Stockholders Agreement Amendment.

          VI.5  Certificate of Designation Amendment (Series A Preferred Stock).
The stockholders of the Company (including the holders of at least 75% of the
shares of Series A Preferred Stock voting separately as a class) shall have
approved the filing by the Company of the Certificate of Designation Amendment
relating to the Series A Preferred Stock.

          VI.6  Certificate of Designation Amendment (Series C Preferred Stock).
The stockholders of the Company (including the holders of at least 75% of the
shares of Series C Preferred Stock voting separately as a class) shall have
approved the filing by the Company of the Certificate of Designation Amendment
relating to the Series C Preferred Stock.

                                  ARTICLE VII

                                INDEMNIFICATION
                                ---------------

          VII.1  Indemnification.  Except as otherwise provided in this
Article VII, the Company (the "Indemnifying Party") agrees to indemnify, defend
and hold harmless each of the Purchasers and its Affiliates and their respective
officers, directors, agents, employees, subsidiaries, partners, members and
controlling persons (each, an "Indemnified Party") to the fullest extent
permitted by law from and against any and all losses, actions, suits,
proceedings, claims, complaints, disputes, arbitrations or investigations
(collectively, "Claims" or written threats thereof (including, without
limitation, any Claim by a third party), damages, expenses (including reasonable
fees, disbursements and other charges of counsel incurred by the Indemnified
Party in any action between the Indemnifying Party and the Indemnified Party or
between the Indemnified Party and any third party) or other liabilities
(collectively, "Losses") resulting from or arising out of any breach of any
representation or warranty, covenant or agreement by the Company in this
Agreement or the other Transaction Documents; provided, however, that the
Indemnifying Party shall not be liable under this Article VII to an Indemnified
Party to the extent that it is finally judicially determined that such Losses
resulted or arose from the breach by such Indemnified Party of any
representation, warranty, covenant or other agreement of such Indemnified Party
contained in this Agreement or the other Transaction Documents or the willful
misconduct or gross negligence of such Indemnified Party; and provided further,
that if and to the extent that such indemnification is unenforceable for any
reason, the Indemnifying Party shall make
<PAGE>

                                                                              18

the maximum contribution to the payment and satisfaction of such Losses which
shall be permissible under applicable laws. The amount of any payment to any
Indemnified Party herewith in respect of any Loss shall be of sufficient amount
to make such Indemnified Party whole. In connection with the obligation of the
Indemnifying Party to indemnify for expenses as set forth above, the
Indemnifying Party shall, upon presentation of appropriate invoices containing
reasonable detail, reimburse each Indemnified Party for all such expenses
(including reasonable fees, disbursements and other charges of counsel incurred
by the Indemnified Party in any action between the Indemnifying Party and the
Indemnified Party or between the Indemnified Party and any third party) as they
are incurred by such Indemnified Party; provided, however, that if an
Indemnified Party is reimbursed under this Article VII for any expenses, such
reimbursement of expenses shall be refunded to the extent it is finally
judicially determined that the Losses in question resulted primarily from the
willful misconduct or gross negligence of such Indemnified Party.

          VII.2  Notification.  Each Indemnified Party under this Article VII
shall, promptly after the receipt of notice of the commencement of any Claim
against such Indemnified Party in respect of which indemnity may be sought from
the Indemnifying Party under this Article VII, notify the Indemnifying Party in
writing of the commencement thereof.  The omission of any Indemnified Party to
so notify the Indemnifying Party of any such action shall not relieve the
Indemnifying Party from any liability which it may have to such Indemnified
Party (a) other than pursuant to this Article VII or (b) under this Article VII
unless, and only to the extent that, such omission results in the Indemnifying
Party's forfeiture of substantive rights or defenses.  In case any such Claim
shall be brought against any Indemnified Party, and it shall notify the
Indemnifying Party of the commencement thereof, the Indemnifying Party shall be
entitled to assume the defense thereof at its own expense, with counsel
satisfactory to such Indemnified Party in its reasonable judgment; provided,
however, that any Indemnified Party may, at its own expense, retain separate
counsel to participate in such defense at its own expense.  Notwithstanding the
foregoing, in any Claim in which both the Indemnifying Party, on the one hand,
and an Indemnified Party, on the other hand, are, or are reasonably likely to
become, a party, such Indemnified Party shall have the right to employ separate
counsel and to control its own defense of such Claim if, in the reasonable
opinion of counsel to such Indemnified Party, a conflict or potential conflict
exists between the Indemnifying Party, on the one hand, and such Indemnified
Party, on the other hand, that would make such separate representation
advisable; provided, however, that the Indemnifying Party (i) shall not be
liable for the fees and expenses of more than one counsel to all Indemnified
Parties and (ii) shall reimburse the Indemnified Parties for all of such fees
and expenses of such counsel incurred in any action between the Indemnifying
Party and the Indemnified Parties or between the Indemnified Parties and any
third party, as such expenses are incurred.  The Indemnifying Party agrees that
it will not, without the prior written consent of the Purchasers, settle,
compromise or consent to the entry of any judgment in any pending or threatened
Claim relating to the matters contemplated hereby (if any Indemnified Party is a
party thereto or has been actually threatened to be made a party thereto) unless
such settlement, compromise or consent includes an unconditional release of each
Indemnified Party from all liability arising or that may arise out of such
Claim.  The Indemnifying Party shall not be liable for any settlement of any
Claim effected against an
<PAGE>

                                                                              19

Indemnified Party without its written consent, which consent shall not be
unreasonably withheld. The rights accorded to an Indemnified Party hereunder
shall be in addition to any rights that any Indemnified Party may have at common
law, by separate agreement or otherwise; provided, however, that notwithstanding
the foregoing or anything to the contrary contained in this Agreement, nothing
in this Article VII shall restrict or limit any rights that any Indemnified
Party may have to seek equitable relief.

          VII.3  Limitation on Indemnification.  Anything in this Agreement to
the contrary notwithstanding, no payment shall be made to an Indemnified Party
pursuant to Section 7.1 of this Agreement until the amounts which the Purchasers
would otherwise be entitled to receive as indemnification under this Agreement
aggregate at least $115,000, at which time the Purchaser shall be entitled to
receive any such payments and any subsequent payments in full.  Anything in this
Agreement to the contrary notwithstanding, the liability of the Company under
this Article shall in no event exceed the total purchase price paid for the
Purchased Shares and the Warrants received by the Company pursuant to this
Agreement.

                                 ARTICLE VIII

                             AFFIRMATIVE COVENANTS
                             ---------------------

          The Company hereby covenants and agrees with each Purchaser that so
long as such Purchaser holds any Purchased Shares or Warrants:

          VIII.1  Financial Statements and Other Information.  The Company
shall deliver to such Purchaser, in form and substance reasonably satisfactory
to such Purchaser:

               (a) as soon as available, but not later than ninety (90) days
after the end of each fiscal year of the Company, a copy of the audited balance
sheet of the Company as of the end of such fiscal year and the related
statements of operations and cash flows for such fiscal year, setting forth in
each case in comparative form the figures for the previous year, all in
reasonable detail and accompanied by a management summary and analysis of the
operations of the Company for such fiscal year and by the opinion of a
nationally recognized independent certified public accounting firm which report
shall state without qualification that such financial statements present fairly
the financial condition as of such date and results of operations and cash flows
for the periods indicated in conformity with GAAP applied on a consistent basis;

               (b) commencing with the quarterly fiscal period ending on June
30, 2000, as soon as available, but in any event not later than forty-five (45)
days after the end of each of the first three fiscal quarters of each fiscal
year, the unaudited balance sheet of the Company, and the related statements of
operations and cash flows for such quarter and for the period commencing on the
first day of the fiscal year and ending on the last day of such quarter, all
certified by an appropriate officer of the Company as presenting fairly the
financial condition as of such date and results of operations and cash flows for
the periods
<PAGE>

                                                                              20

indicated in conformity with GAAP applied on a consistent basis, subject to
normal year-end adjustments and the absence of footnotes required by GAAP; and

               (c) commencing with the month ending on June 30, 2000, as soon as
available, but in any event not later than thirty (30) days after the end of the
first eleven months of each fiscal year, the unaudited balance sheet of the
Company, and the related statements of operations and cash flows for such month
and for the period commencing on the first day of the fiscal year and ending on
the last day of such month, all certified by an appropriate officer of the
Company as presenting fairly the financial condition as of such date and results
of operations and cash flows for the periods indicated in conformity with GAAP
applied on a consistent basis, subject to normal year-end adjustments and the
absence of footnotes required by GAAP.

          VIII.2  Reservation of Stock.  The Company shall at all times
reserve and keep available out of its authorized shares of Common Stock, solely
for the purpose of issuing and delivering such shares upon conversion of the
Purchased Shares, as provided in the Certificate of Designation, and the
exercise of the Warrants, the maximum number of shares of Common Stock that may
be issuable or deliverable upon such conversion or exercise.

          VIII.3  Books and Records.  The Company shall keep proper books of
record and account, in which full and correct entries shall be made of all
financial transactions and the assets and business of the Company in accordance
with GAAP consistently applied.

          VIII.4  Inspection.  The Company shall permit representatives of the
Purchasers to visit and inspect any of its properties, to examine its corporate,
financial and operating records and make copies thereof or abstracts therefrom,
to discuss its affairs, finances and accounts with their respective directors,
officers and independent public accountants, and shall provide the Purchasers
and their representatives with reasonable access to its officers and employees,
all at such reasonable times during normal business hours and as often as may be
reasonably requested upon reasonable advance notice to the Company.

                                  ARTICLE IX

                         AMENDMENT OF MAY 2 AGREEMENT
                         ----------------------------

          IX.1  Amendment of May 2 Agreement.  The Company, QIP and Greenlake
III, being all of the parties to the May 2 Agreement, and QIP and Greenlake III,
being the holders of all outstanding Subordinated Notes issued pursuant to the
May 2 Agreement (the "Subordinated Notes"), hereby agree to amend, and do amend
the May 2 Agreement by deleting the form of Certificate of the Powers,
Designations, Preferences and Rights of the Series B Convertible Preferred
Stock, Par Value $.01 Per Share of the Company, annexed as Exhibit C to the
Preferred Stock and Warrant Purchase Agreement, dated May 31, 2000,
<PAGE>

                                                                              21

among the Company, QIP and Greenlake III, and by replacing such Exhibit C with
the form of Certificate of the Powers, Designations, Preferences and Rights of
the Series B Convertible Preferred Stock, Par Value $.01 Per Share of the
Company, annexed as Exhibit C to this Agreement. The parties further agree that
each reference in the May 2 Agreement or the Subordinated Notes to the
"Certificate of Designation" or "Exhibit C hereto" shall hereafter be understood
to refer to the form of Certificate of the Powers, Designations, Preferences and
Rights of the Series B Convertible Preferred Stock, Par Value $.01 Per Share of
the Company annexed as Exhibit C to this Agreement. Except as specifically
amended hereby, the May 2 Agreement and each outstanding Subordinated Note shall
continue in full force and effect in accordance with its terms.

                                   ARTICLE X

                                 MISCELLANEOUS
                                 -------------

          X.1  Survival of Representations and Warranties.  All of the
representations and warranties made herein shall survive the execution and
delivery of this Agreement until the first anniversary of the Closing Date.

          X.2  Notices.  All notices, demands and other communications
provided for or permitted hereunder shall be made in writing and shall be by
registered or certified first-class mail, return receipt requested, telecopier,
courier service or personal delivery:

               if to the Company:

               Outboard Marine Corporation
               100 Sea Horse Drive
               Waukegan, IL 60085
               Telecopy: (847) 689-6200
               Attention: General Counsel

               with a copy to:

               Davis Polk & Wardwell
               450 Lexington Avenue
               New York, NY 10017
               Telecopy: (212) 450-4800
               Attention: Julia K. Cowles, Esq.

               (i) if to Quantum Industrial Partners LDC.:

                   Kaya Flamboyan 9,
                   Villemstad
                   Curacao
<PAGE>

                                                                              22

                    Netherlands-Antilles
                    with a copy to:

                    Soros Fund Management LLC
                    888 Seventh Avenue
                    New York, NY 10016
                    Telecopy: (212) 664-0544
                    Attention: Michael Neus, Esq.

                    and a copy to:

                    Paul, Weiss, Rifkind, Wharton & Garrison
                    1285 Avenue of the Americas
                    New York, New York 10019-6064
                    Telecopy: (212) 757-3990
                    Attention: James Dubin, Esq.

               (ii) If to Greenlake:

                    Greenlake Holdings V LLC
                    c/o Greenway Partners, L.P.
                    277 Park Avenue
                    New York, NY 10016
                    Telecopy: (212) 350-5253
                    Attention: Gary Duberstein

                    with a copy to:

                    Weil, Gotshal & Manges
                    767 Fifth Avenue
                    New York, New York 10153
                    Telecopy: (212) 310-8007
                    Attention: David Blittner, Esq.

          All such notices, demands and other communications shall be deemed to
have been duly given when delivered by hand, if personally delivered; when
delivered by courier, if delivered by commercial courier service; five (5)
Business Days after being deposited in the mail, postage prepaid, if mailed; and
when receipt is mechanically acknowledged, if telecopied.

          X.3  Successors and Assigns; Third Party Beneficiaries.  This
Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of the parties hereto.  Subject to applicable securities laws
and the terms and conditions thereof, the Purchasers may assign any of their
rights under this Agreement or the other Transaction Documents to any of their
respective Affiliates.  The Company may not assign any of its
<PAGE>

                                                                              23

rights under this Agreement without the written consent of the Purchasers.
Except as provided in Article VII, no Person other than the parties hereto and
their successors and permitted assigns is intended to be a beneficiary of this
Agreement.

          X.4  Amendment and Waiver.

               (a) No failure or delay on the part of the Company or the
Purchasers in exercising any right, power or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right,
power or remedy preclude any other or further exercise thereof or the exercise
of any other right, power or remedy. The remedies provided for herein are
cumulative and are not exclusive of any remedies that may be available to the
Company or the Purchasers at law, in equity or otherwise.

               (b) Any amendment, supplement or modification of or to any
provision of this Agreement, any waiver of any provision of this Agreement, and
any consent to any departure by the Company or the Purchasers from the terms of
any provision of this Agreement, shall be effective (i) only if it is made or
given in writing and signed by the Company and the Purchasers purchasing 75% of
the outstanding Purchased Shares, and (ii) only in the specific instance and for
the specific purpose for which made or given. Except where notice is
specifically required by this Agreement, no notice to or demand on the Company
in any case shall entitle the Company to any other or further notice or demand
in similar or other circumstances.

          X.5  Counterparts.  This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

          X.6  Headings.  The headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect the meaning hereof.

          X.7  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD
TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF.

          X.8  Severability.  If any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal
or unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions hereof shall not be in any way impaired, unless the provisions held
invalid, illegal or unenforceable shall substantially impair the benefits of the
remaining provisions hereof.
<PAGE>

                                                                              24

          X.9  Rules of Construction.  Unless the context otherwise requires,
"or" is not exclusive and references to sections or subsections refer to
sections or subsections of this Agreement.

          X.10  Right to Conduct Activities.  The Company and each Purchaser
hereby acknowledges that some or all of the Purchasers are professional
investment funds, and as such, invest in numerous portfolio companies, some of
which may be competitive with the Company's business.  No Purchaser shall be
liable to the Company or to any other Purchaser for any claim arising out of, or
based upon, the investment activities of such Purchaser, including without
limitation, any claim arising out of, or based upon, (i) the investment by
Purchaser in an entity competitive to the Company, or (ii) actions taken by any
partner, officer or other representative of any Purchaser to assist any such
competitive company, or otherwise, and whether or not such action has a
detrimental effect of the Company.

          X.11  Entire Agreement.  This Agreement, together with the exhibits
and schedules hereto, and the other Transaction Documents are intended by the
parties as a final expression of their agreement and intended to be a complete
and exclusive statement of the agreement and understanding of the parties hereto
in respect of the subject matter contained herein and therein.  There are no
restrictions, promises, representations, warranties or undertakings, other than
those set forth or referred to herein or therein.  This Agreement, together with
the exhibits and schedules hereto, and the other Transaction Documents supersede
all prior agreements and understandings between the parties with respect to such
subject matter.

          X.12  Fees.  Upon the Closing, the Company shall reimburse each of
the Purchasers for all expenses incurred by each such Purchaser in the course of
conducting such Purchaser's due diligence investigation of the Company
(including any fees and expenses of outside consultants to such Purchaser) and
for the fees, disbursements and other charges of counsel incurred in connection
with the transactions contemplated by this Agreement.

          X.13  Publicity.

               (a) Except as may be required by applicable Requirements of Law,
none of the parties hereto shall issue a publicity release or public
announcement or otherwise make any disclosure concerning this Agreement and the
transactions contemplated hereby without prior approval by the other parties
hereto. If any announcement is required by law or the rules of any securities
exchange or market on which shares of Common Stock are traded to be made by any
party hereto, prior to making such announcement such party will deliver a draft
of such announcement to the other parties and shall give the other parties
reasonable opportunity to comment thereon.

               (b) For so long as QIP or any of its Affiliates owns any
Securities, QIP shall have the opportunity to review and modify any provision of
any public release, public announcement or government filing which is to be
released to the public, which
<PAGE>

                                                                              25

provision mentions QIP or any of its Affiliates, prior to the release of such
document to the public, it being understood and agreed that Soros Private Equity
Partners LLC will be identified as making investments on behalf of QIP.

          X.14  Further Assurances.  Each of the parties shall execute such
documents and use reasonable efforts to perform such further acts (including,
without limitation, obtaining any consents, exemptions, authorizations or other
actions by, or giving any notices to, or making any filings with, any
Governmental Authority or any other Person) as may be reasonably required or
desirable to carry out or to perform the provisions of this Agreement.

                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
<PAGE>

          IN WITNESS WHEREOF, the undersigned have executed, or have caused to
be executed, this Preferred Stock and Warrant Purchase Agreement on the date
first written above.

                    OUTBOARD MARINE CORPORATION

                    By: /s/  Eric T. Martinez
                       ----------------------------------------------------
                       Name: Eric T. Martinez
                       Title: Sr. Vice President Finance and Treasurer

                    QUANTUM INDUSTRIAL PARTNERS LDC

                    By: /s/ Michael C. Neus
                       ----------------------------------------------------
                       Name: Michael C. Neus
                       Title: Attorney in Fact

                    GREENLAKE HOLDINGS V LLC

                    By: /s/ Gary K. Duberstein
                       ----------------------------------------------------
                       Name: Gary K. Duberstein
                       Title: Vice President

                    GREENLAKE HOLDINGS III LLC
                    (solely with respect to Article IX hereto)

                    By: /s/ Gary K. Duberstein
                       ----------------------------------------------------
                       Name:  Gary K. Duberstein
                       Title: Vice President
<PAGE>

                                                                    SCHEDULE 2.1
                                                                    ------------

            PURCHASED SHARES AND WARRANT SHARES AND PURCHASE PRICE
            ------------------------------------------------------

<TABLE>
<CAPTION>
                          Number of Shares of
      Purchaser/1/        Series D Preferred    Warrant Shares    Purchase Price
                                Stock
--------------------------------------------------------------------------------
<S>                       <C>                   <C>               <C>

Quantum Industrial             200,000              846,154         $20,000,000
 Partners LDC

Greenlake Holdings V LLC          0                    0                 $0
</TABLE>

----------------------
/1/  Subsequent to the Closing, QIP may sell a portion of the shares of Series D
     Preferred Stock and Warrants purchased at the Closing to Greenlake or its
     Affiliate on such terms as QIP and Greenlake may agree.
<PAGE>

================================================================================

                PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT

                                     among

                         OUTBOARD MARINE CORPORATION,

                        QUANTUM INDUSTRIAL PARTNERS LDC

                                      and

                           GREENLAKE HOLDINGS V LLC

                        ______________________________

                                 July 19, 2000
                        ______________________________

================================================================================
<PAGE>

                               Table of Contents
                               -----------------

<TABLE>
<CAPTION>
                                                                 Page #
                                                                 ------
<C>          <S>                                                 <C>
ARTICLE I DEFINITIONS.................................................1
     1.1     Definitions..............................................1

ARTICLE II PURCHASE AND SALE OF PREFERRED STOCK AND WARRANTS..........7
     2.1     Purchase and Sale of Preferred Stock and Warrants........7
     2.2     Use of Proceeds..........................................8
     2.3     Closing..................................................8

ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY.............8
     3.1     Corporate Existence and Power............................8
     3.2     Authorization; No Contravention..........................8
     3.3     Governmental Authorization; Third Party Consents.........9
     3.4     Binding Effect...........................................9
     3.5     Compliance with Laws.....................................9
     3.6     Capitalization...........................................9
     3.7     No Default or Breach; Contractual Obligations...........10
     3.8     Financial Statements....................................11
     3.9     No Material Adverse Change; Ordinary Course of Business.11
     3.10    Private Offering........................................11
     3.11    Intellectual Property...................................11
     3.12    Broker's, Finder's or Similar Fees......................12
     3.13    Litigation; Observance of Statutes and Orders...........12
     3.14    Taxes...................................................12
     3.15    Title to Property; Leases...............................13

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS..........13
     4.1     Existence and Power.....................................13
     4.2     Authorization; No Contravention.........................13
     4.3     Governmental Authorization; Third Party Consents........13
     4.4     Binding Effect..........................................14
     4.5     Purchase for Own Account................................14
     4.6     Restricted Securities...................................15
     4.7     Broker's, Finder's or Similar Fees......................15
     4.8     Accredited Investor.....................................15
     4.9     Disclosure of Information...............................15
     4.10    Investment Experience...................................15

ARTICLE V CONDITIONS TO THE OBLIGATION OF THE PURCHASERS TO CLOSE....16
     5.1     Representations and Warranties..........................16
     5.2     Secretary's Certificate.................................16
     5.3     Purchased Shares........................................16
</TABLE>

                                       i
<PAGE>

<TABLE>
<C>          <S>                                                 <C>
     5.4     Warrants.................................................16
     5.5     Third Registration Rights Agreement Amendment............16
     5.6     Third Stockholders Agreement Amendment...................16
     5.7     Certificate of Designation Amendments....................16
     5.8     Certificate of Designation...............................17
     5.9     Opinion of Counsel.......................................17

ARTICLE VI CONDITIONS TO THE OBLIGATION OF THE COMPANY TO CLOSE.......17
     6.1     Representations and Warranties...........................17
     6.2     Payment of Purchase Price................................17
     6.3     Third Registration Rights Agreement Amendment............17
     6.4     Third Stockholders Agreement Amendment...................17
     6.5     Certificate of Designation Amendment.....................17
     6.6     Certificate of Designation Amendment.....................17

ARTICLE VII INDEMNIFICATION...........................................18
     7.1     Indemnification..........................................18
     7.2     Notification.............................................19
     7.3     Limitation on Indemnification............................19

ARTICLE VIII AFFIRMATIVE COVENANTS....................................20
     8.1     Financial Statements and Other Information...............20
     8.2     Reservation of Stock.....................................21
     8.3     Books and Records........................................21
     8.4     Inspection...............................................21

ARTICLE IX AMENDMENT OF MAY 2 AGREEMENT...............................21
     9.1     Amendment of May 2 Agreement.............................21

ARTICLE X MISCELLANEOUS...............................................22
     10.1    Survival of Representations and Warranties...............22
     10.2    Notices..................................................22
     10.3    Successors and Assigns; Third Party Beneficiaries........23
     10.4    Amendment and Waiver.....................................24
     10.5    Counterparts.............................................24
     10.6    Headings.................................................24
     10.7    GOVERNING LAW............................................24
     10.8    Severability.............................................24
     10.9    Rules of Construction....................................24
     10.10   Right to Conduct Activities..............................25
     10.11   Entire Agreement.........................................25
     10.12   Fees.....................................................25
     10.13   Publicity................................................25
     10.14   Further Assurances.......................................26
</TABLE>

                                      ii
<PAGE>

EXHIBITS

A           Form of Warrant
B           Form of Certificate of Designation of Series D Preferred Stock
C           Form of Certificate of Designation of Series B Preferred Stock
D           Form of Third Registration Rights Amendment
E           Form of Third Stockholders Agreement Amendment
F           Form of Series A Certificate of Designation Amendment
G           Form of Series C Certificate of Designation Amendment
H           Form of OMC Opinion of Counsel

SCHEDULES

2.1         Purchased Shares, Warrant Shares and Purchase Price

                                      iii

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