Document:

<PAGE>

                           CERTIFICATE OF DESIGNATION
                     OF SERIES C CONVERTIBLE PREFERRED STOCK

                                       of

                          DIGITALCONVERGENCE.:COM INC.

             Pursuant to Section 151 of the General Corporation Law
                            of the State of Delaware

         We, the undersigned, Patrick V. Stark and William S. Leftwich, the
Executive Vice President and Secretary, respectively, of
DigitalConvergence.:Com Inc., a Delaware corporation (the "Corporation"),
pursuant to Section 151 of the General Corporation Law of the State of
Delaware, do hereby make this Certificate of Designation and do hereby state
and certify that, pursuant to the authority expressly vested in the Board of
Directors of the Corporation by the Amended and Restated Certificate of
Incorporation of the Corporation, the Board of Directors by written consent
unanimously adopted the following resolutions providing for the issuance of a
series of the Corporation's Preferred Stock designated as the Series C
Convertible Preferred Stock:

         RESOLVED, that the Board of Directors of the Corporation, in
accordance with the provisions of its Amended and Restated Certificate of
Incorporation, does hereby provide for the issue of a series of the
Corporation's Preferred Stock, and does hereby fix and herein state the
designation and amount thereof and the voting powers, preferences and
relative, participating, optional and other special rights of the shares of
such series, and the qualifications, limitations or restrictions thereof as
follows:

         Section 1.        DESIGNATION AND AMOUNT; OTHER SERIES OF PREFERRED.

         (a)      SERIES C PREFERRED.

         There shall be a series of the Corporation's Preferred Stock
designated as "Series C Convertible Preferred Stock" (the "Series C
Preferred") and the number of shares of such series shall be thirteen million
three-hundred thousand (13,300,000). Each share of Series C Preferred is
referred to herein as a "Share" and, collectively, the "Shares." Immediately
after a Qualified Public Offering (as defined in Section 4(b) hereof), all
authorized and unissued shares of Series C Preferred shall be returned to the
status of authorized, unissued and undesignated shares of the Corporation's
Preferred Stock, and all such shares shall no longer be governed by this
Certificate of Designation.

SERIES C CERTIFICATE OF DESIGNATION - Page 1

<PAGE>

         (b)      OTHER SERIES OF PREFERRED.

         The Corporation has also designated a Series A Convertible Preferred
Stock (the "Series A Preferred") and a Series B Convertible Preferred Stock
(the "Series B Preferred").

         Section 2.        DIVIDENDS AND DISTRIBUTIONS.

         The holders of Shares of Series C Preferred shall be entitled to
receive dividends when, as and if declared by the Board of Directors out of
funds legally available therefor. In the event that the Corporation declares
or pays any dividends upon the common stock, par value $0.01 per share, of the
Corporation (the "Common Stock") (whether payable in cash, securities or other
property), the Corporation shall also declare and pay to the holders of the
Series C Preferred at the same time that it declares and pays such dividends
to the holders of the Common Stock, the dividends which would have been
declared and paid with respect to the Common Stock issuable upon conversion of
the Series C Preferred pursuant to Section 4 hereof had all of the outstanding
Shares been so converted immediately prior to the record date for such
dividend, or if no record date is fixed, the date as of which the record
holders of Common Stock entitled to such dividends are to be determined. No
dividend shall be paid on or declared and set apart for the Shares for any
dividend period unless at the same time a like proportionate dividend for the
same dividend period, determined on an as-converted basis, shall be paid on or
declared and set apart for the shares of Series A Preferred and Series B
Preferred.

         Section 3.        LIQUIDATION RIGHTS.

         In the event of any liquidation, dissolution or winding-up of the
Corporation, whether voluntary or involuntary (a "Liquidation"), subject to
the pari passu rights of the Series A Preferred and the Series B Preferred set
forth in Section 3(d) below, distributions shall be made to the holders of
Series C Preferred in respect of such Series C Preferred before any amount
shall be paid to the holders of any other class or series of capital stock of
the Corporation in the following manner:

                  (a)      SERIES C PREFERRED.

                  The holders of the Series C Preferred shall be entitled to
receive an amount equal to (i) the Conversion Value PLUS any declared but
unpaid dividends and (ii) the holders of Series C Preferred shall be entitled
to share ratably, on an "as if converted" basis, in all remaining assets and
surplus funds along with the holders of Common Stock (and any other class of
capital stock of the Corporation which has such "as if converted" status with
respect to a Liquidation).

SERIES C CERTIFICATE OF DESIGNATION - Page 2

<PAGE>

                  (b)      EVENTS DEEMED A LIQUIDATION.

                  For purposes of this Section 3, the holders of a majority of
the Shares may elect to have treated as a Liquidation the consolidation or
merger of the Corporation with or into any other corporation or the sale or
other transfer in a single transaction or a series of related transactions of
all or substantially all of the assets of the Corporation, or any other
reorganization of the Corporation, unless the stockholders of the Corporation
immediately prior to any such transaction are holders of a majority of the
voting securities of the surviving or acquiring corporation immediately
thereafter with comparable rights with respect to their respective classes of
shares (and for purposes of this calculation equity securities which any
stockholder or the Corporation owned immediately prior to such merger or
consolidation as a stockholder of another party to the transaction shall be
disregarded).

                  (c)      VALUATION OF SECURITIES AND PROPERTY.

                  In the event the Corporation proposes to distribute assets
other than cash in connection with any Liquidation, the value of the assets to
be distributed to the holders of Shares of Series C Preferred shall be
determined in good faith by the Board of Directors. Any securities not subject
to contractual restrictions on free marketability shall be valued as follows:

                           (i)      if traded on a national securities
exchange or the Nasdaq National Market System ("Nasdaq"), the value shall be
deemed to be the average of the security's closing prices on such exchange or
Nasdaq over the thirty (30) trading day period ending three (3) days prior to
the distribution;

                           (ii)     if actively traded over-the-counter (other
than Nasdaq), the value shall be deemed to be the average of the closing bid
prices over the thirty (30) day period ending three (3) days prior to the
distribution; or

                           (iii)    if there is no active public market, the
value shall be the fair market value thereof as determined in good faith by
the Board of Directors.

The method of valuation of securities subject to contractual restrictions on
free marketability shall be adjusted to make an appropriate discount from the
market value determined as above in clauses (i), (ii) or (iii) to reflect the
fair market value thereof as determined in good faith by the Board of
Directors. The holders of at least 50% of the outstanding Series C Preferred
shall have the right to challenge any determination by the Board of Directors
of fair market value pursuant to this Section 3(c), in which case the
determination of fair market value shall be made by an independent appraiser
selected jointly by the Board of Directors and such holders, the cost of such
appraisal to be borne equally by the Corporation and such holders. If the
Board of Directors and such holders cannot agree on an independent appraiser,
each shall select an

SERIES C CERTIFICATE OF DESIGNATION - Page 3

<PAGE>

independent appraiser and such two independent appraisers shall select one
independent appraiser to make such determination.

         (d)      PARI PASSU LIQUIDATION PRIORITY OF SERIES A PREFERRED,
SERIES B PREFERRED AND SERIES C PREFERRED.

         Notwithstanding any other term or provision hereof, the Series A
Preferred, Series B Preferred and Series C Preferred shall rank on a pari
passu basis in the event of any Liquidation. If the proceeds from a
Liquidation are not sufficient to pay to the holders of the Series A
Preferred, Series B Preferred and Series C Preferred the full preference
amount set forth in paragraph 3(a)(i) of the respective Certificates of
Designation for such shares, then such holders shall instead be entitled to
receive the entire assets and funds of the Corporation legally available for
distribution, which assets and funds shall be distributed ratably among the
holders of the Series A Preferred, the Series B Preferred and the Series C
Preferred in proportion to the full amount to which each holder would
otherwise be entitled as set forth in paragraph 3(a)(i) of the respective
Certificates of Designation for such shares.

         Section 4.        CONVERSION.

         The holders of Series C Preferred have conversion rights as follows
(the "Conversion Rights"):

                  (a)      RIGHT TO CONVERT.

                  Each Share of Series C Preferred shall initially be
convertible, at the option of the holder thereof, at any time on or after the
date of issuance thereof, into the number of fully paid and nonassessable
shares of Common Stock which results from dividing the Conversion Price (as
hereinafter specified) per share in effect at the time of conversion into the
per share Conversion Value in effect at the time of conversion. The initial
Conversion Price of the Series C Preferred shall be $10.54 per share, and the
Conversion Value of the Series C Preferred shall be $10.54 per share. The
initial Conversion Price of the Series C Preferred shall be subject to
adjustment from time to time as provided in Section 4(d) hereof. The
Conversion Value shall not be subject to adjustment (except in connection with
a stock split, stock dividend, combination, recapitalization or other such
adjustment). Upon conversion, all declared but unpaid dividends on the Series
C Preferred so converted shall be paid in cash, to the extent permitted by
applicable law (and if not then permitted by applicable law, at such time as
the Corporation is permitted by applicable law to pay any such dividends).

                  (b)      AUTOMATIC CONVERSION.

                  Each Share of Series C Preferred shall automatically be
converted into shares of Common Stock upon (i) the election of the holders of
at least two-thirds of the

SERIES C CERTIFICATE OF DESIGNATION - Page 4

<PAGE>

then outstanding Shares of Series C Preferred or (ii) the closing of a firm
commitment underwritten public offering of Common Stock pursuant to an
effective registration statement under the Securities Act of 1933 in which:
(A) the gross proceeds equal or exceed $75,000,000 and (B) the aggregate
market value of the Common Stock of the Corporation immediately prior to the
closing of the underwritten public offering, but assuming the conversion of
each then outstanding share of the Corporation's Preferred Stock (and
determined utilizing the offering price in such underwriting), equals or
exceeds $750,000,000 (a "Qualified Public Offering"). Upon conversion, all
declared but unpaid dividends on the Series C Preferred shall be paid in cash,
to the extent permitted by applicable law (and if not then permitted by
applicable law, at such time as the Corporation is permitted by applicable law
to pay any such dividends).

                  (c)      MECHANICS OF CONVERSION.

                  Before any holder of Series C Preferred shall be entitled to
convert the same into shares of Common Stock and to receive certificates
therefor, such holder shall surrender the certificate or certificates
therefor, duly endorsed, at the principal office of the Corporation or of any
transfer agent for the Series C Preferred, and shall give written notice to
the Corporation at such office that such holder elects to convert the same;
provided, however, that in the event of an automatic conversion pursuant to
Section 4(b) hereof, the outstanding Shares of Series C Preferred shall be
converted automatically without any further action by the holders of such
Shares and whether or not the certificates representing such Shares are
surrendered to the Corporation or its transfer agent; and provided further
that the Corporation shall not be obligated to issue certificates evidencing
the shares of Common Stock issuable upon such automatic conversion unless and
until the certificates evidencing such Shares of Series C Preferred are either
delivered to the Corporation or its transfer agent as provided above, or the
holder notifies the Corporation or its transfer agent that such certificates
have been lost, stolen or destroyed and executes an agreement satisfactory to
the Corporation to indemnify the Corporation from any loss incurred by it in
connection with such certificates. The Corporation shall as soon as
practicable after such delivery, or after such agreement and indemnification,
issue and deliver at such office to such holder of Series C Preferred, a
certificate or certificates for the number of shares of Common Stock to which
he or she shall be entitled as aforesaid and a check payable to the holder in
the amount of any declared but unpaid dividends payable pursuant to Section 2
hereof, if any. Such conversion shall be deemed to have been made immediately
prior to the close of business on the date of such surrender of the Shares of
Series C Preferred to be converted, or, in the case of automatic conversion,
immediately prior to the occurrence of the event leading to such automatic
conversion, and the person or persons entitled to receive the shares of Common
Stock issuable upon such conversion shall be treated for all purposes as the
record holder or holders of such shares of Common Stock on such date. If the
Corporation fails to pay all such dividends within twenty (20) days of the
date of conversion, the holder entitled to such dividends may elect to have
the Corporation issue to such holder, in lieu of such cash

SERIES C CERTIFICATE OF DESIGNATION - Page 5

<PAGE>

payment, additional shares of Common Stock calculated by dividing the total
amount payable on such date by the Conversion Value.

                  (d)      ADJUSTMENTS TO CONVERSION PRICE.

                           (i)      SPECIAL DEFINITIONS.

                           For purposes of this Section 4(d), the following
definitions shall apply:

                                    (1)     "OPTIONS" shall mean rights,
options or warrants to subscribe for, purchase or otherwise acquire either
Common Stock or Convertible Securities, other than the warrants issued to
National Broadcasting Company, Inc. pursuant to the Warrant Agreements, both
entered into in April of 2000.

                                    (2)     "CONVERTIBLE SECURITIES" shall
mean any evidences of indebtedness, shares or other securities convertible
into or exchangeable for Common Stock.

                                    (3)     "ADDITIONAL SHARES OF COMMON
STOCK" shall mean all shares of Common Stock issued (or, pursuant to Section
4(d)(iii), deemed to be issued) by the Corporation after the Original Issue
Date, other than shares of Common Stock issued or issuable: (A) upon
conversion of Shares or any other shares of the Corporation's Preferred Stock;
(B) as a dividend or distribution on any shares of the Corporation's Preferred
Stock, including the Shares; (C) in a transaction described in Section
4(d)(vi); (D) pursuant to any stock option plan, stock purchase plan, stock
award plan or stock incentive plan of the Corporation in any amount less than
fifteen percent (15%) of the fully diluted Common Stock and the Corporation's
Preferred Stock on an as-converted basis; (E) the issuance of warrants to
National Broadcasting Company, Inc. pursuant to the Warrant Agreements, both
entered into in April of 2000, or shares of Common Stock issuable upon
exercise thereof; (F) upon the exercise or conversion of warrants or options
outstanding on the Original Issue Date; or (G) by way of dividend or other
distribution on shares of Common Stock excluded from the definition of
Additional Shares of Common Stock by the foregoing clauses (A), (B), (C), (D),
(E), (F) or this clause (G).

                                    (4)     "ORIGINAL ISSUE DATE" shall mean
the date on which the first Share of Series C Preferred was issued.

                           (ii)     ADJUSTMENT OF CONVERSION PRICE RESULTING
FROM ISSUANCE OF ADDITIONAL SHARES.

                           No adjustment in the Conversion Price of the Series
C Preferred shall be made in respect of the issuance of Additional Shares of
Common Stock unless

SERIES C CERTIFICATE OF DESIGNATION - Page 6

<PAGE>

the consideration per share for an Additional Share of Common Stock issued or
deemed to be issued by the Corporation is less than the Conversion Price for
the Series C Preferred in effect on the date of, and immediately prior to,
such issue.

                           (iii)    DEEMED ISSUE OF ADDITIONAL SHARES OF
COMMON STOCK.

                           In the event the Corporation at any time or from
time to time after the Original Issue Date shall issue any Options (other than
Options under the Corporation's Stock Option Plan that upon exercise would not
constitute Additional Shares of Common Stock) or Convertible Securities or
shall fix a record date for the determination of holders of any class of
securities entitled to receive any such Options or Convertible Securities then
the maximum number of shares (as set forth in the instrument relating thereto
without regard to any provisions contained therein for a subsequent adjustment
of such number) of Common Stock issuable upon the exercise of such Options or,
in the case of Convertible Securities and Options therefor, the exercise of
such Options and conversion or exchange of such Convertible Securities shall
be deemed to be Additional Shares of Common Stock issued as of the time of
such issue or, in case such a record date shall have been fixed, as of the
close of business on such record date, provided that Additional Shares of
Common Stock shall not be deemed to have been issued unless the consideration
per share (determined pursuant to Section 4(d)(v) hereof) of such Additional
Shares of Common Stock would be less than the Conversion Price in effect on
the date of and immediately prior to such issue, or such record date, as the
case may be, and provided further that in any such case in which Additional
Shares of Common Stock are deemed to be issued:

                                    (1)     except as provided in Section
4(d)(iii)(2), no further adjustment in the Conversion Price shall be made upon
the subsequent issue of Convertible Securities or shares of Common Stock upon
the exercise of such Options or conversion or exchange of such Convertible
Securities;

                                    (2)     if such Options or Convertible
Securities by their terms provide, with the passage of time or otherwise, for
any change in the consideration payable to the Corporation, or change in the
number of shares of Common Stock issuable, upon the exercise, conversion or
exchange thereof (other than under or by reason of provisions designed to
protect against dilution), the Conversion Price computed upon the original
issue thereof (or upon the occurrence of a record date with respect thereto)
and any subsequent adjustments based thereon, shall, upon any such increase or
decrease becoming effective, be recomputed to reflect such increase or
decrease insofar as it affects such Options or the rights of conversion or
exchange under such Convertible Securities; and

                                    (3)     no readjustment pursuant to clause
(2) above shall have the effect of increasing the Conversion Price to an
amount which exceeds the lower of (A) the Conversion Price on the original
adjustment date or (B) the Conversion

SERIES C CERTIFICATE OF DESIGNATION - Page 7

<PAGE>

Price that would have resulted from any issuance of Additional Shares of
Common Stock between the original adjustment date and such readjustment date.

                           (iv)     ADJUSTMENT OF CONVERSION PRICE UPON
ISSUANCE OF ADDITIONAL SHARES OF COMMON STOCK.

                           In the event the Corporation shall issue Additional
Shares of Common Stock (including Additional Shares of Common Stock deemed to
be issued pursuant to Section 4(d)(iii)) without consideration or for a
consideration per share less than the Conversion Price in effect on the date
of and immediately prior to such issue, then and in each such event the
Conversion Price of the Series C Preferred shall be reduced to a price
(calculated to the nearest cent) determined by multiplying such Conversion
Price of the Series C Preferred by a fraction, the numerator of which shall be
the number of shares of Common Stock outstanding immediately prior to such
issue plus the number of shares of Common Stock which the aggregate
consideration received by the Corporation for the total number of Additional
Shares of Common Stock so issued would purchase at such Conversion Price of
the Series C Preferred, and the denominator of which shall be the number of
shares of Common Stock outstanding immediately prior to such issue plus the
number of such Additional Shares of Common Stock so issued.

                           (v)      DETERMINATION OF CONSIDERATION.

                           For purposes of this Section 4(d), the
consideration received by the Corporation for the issue of any Additional
Shares of Common Stock shall be computed as follows:

                                    (1)     CASH AND PROPERTY:

                                    (A) insofar as it consists of cash, such
consideration shall be computed at the aggregate amount of cash received by
the Corporation; (B) insofar as it consists of property other than cash, such
consideration shall be computed at the fair value thereof at the time of such
issue, as determined by the Board of Directors in the good faith exercise of
its reasonable business judgment; and (C) in the event Additional Shares of
Common Stock are issued together with other shares or securities or other
assets of the Corporation for consideration which covers both, such
consideration shall be the proportion of such consideration so received,
computed as provided in clauses (A) and (B) above, as determined by the Board
of Directors in the good faith exercise of its reasonable business judgment.

                                    (2)     OPTIONS AND CONVERTIBLE SECURITIES.

                                    The consideration per share received by
the Corporation for Additional Shares of Common Stock deemed to have been
issued pursuant to Section 4(d)(iii), relating to Options and Convertible
Securities, shall be determined by dividing

SERIES C CERTIFICATE OF DESIGNATION - Page 8

<PAGE>

(A) the total amount, if any, received or receivable by the Corporation as
consideration for the issue of such Options or Convertible Securities, plus
the minimum aggregate amount of additional consideration (as set forth in the
instruments relating thereto, without regard to any provision contained
therein for a subsequent adjustment of such consideration) payable to the
Corporation upon the exercise of such Options or the conversion or exchange of
such Convertible Securities, or in the case of Options for Convertible
Securities, the exercise of such Options for Convertible Securities and the
conversion or exchange of such Convertible Securities, by (B) the maximum
number of shares of Common Stock (as set forth in the instruments relating
thereto, without regard to any provision contained therein for a subsequent
adjustment of such number) issuable upon the exercise of such Options or the
conversion or exchange of such Convertible Securities.

                           (vi)     OTHER ADJUSTMENTS.

                                    (1)     SUBDIVISIONS, COMBINATIONS, OR
CONSOLIDATIONS OF COMMON STOCK.

                                    In the event the outstanding shares of
Common Stock shall be subdivided, combined or consolidated, by stock split,
stock dividend, combination or like event, into a greater or lesser number of
shares of Common Stock, the Conversion Price of the Series C Preferred in
effect immediately prior to such subdivision, combination, consolidation or
stock dividend shall, concurrently with the effectiveness of such subdivision,
combination or consolidation, be proportionately adjusted.

                                    (2)     RECLASSIFICATIONS.

                                    In the case, at any time after the date
hereof, of any capital reorganization or any reclassification of the stock of
the Corporation (other than as a result of a stock dividend or subdivision,
split-up or combination of shares), or the consolidation or merger of the
Corporation with or into another person (other than a consolidation or merger
(A) in which the Corporation is the continuing entity and which does not
result in any change in the Common Stock or (B) which is treated as a
Liquidation pursuant to Section 3(b) above), the Shares of Series C Preferred
shall, after such reorganization, reclassification, consolidation or merger be
convertible into the kind and number of shares of stock or other securities or
property of the Corporation or otherwise to which such holder would have been
entitled if immediately prior to such reorganization, reclassification,
consolidation or merger such holder had converted his Shares of Series C
Preferred into Common Stock. The provisions of this clause 4(d)(vi)(2) shall
similarly apply to successive reorganizations, reclassifications,
consolidations or mergers.

                  (e)      CERTIFICATE AS TO ADJUSTMENTS.

                  Upon the occurrence of each adjustment or readjustment of
the

SERIES C CERTIFICATE OF DESIGNATION - Page 9

<PAGE>

Conversion Price of the Series C Preferred pursuant to this Section 4, the
Corporation at its expense shall promptly compute such adjustment or
readjustment in accordance with the terms hereof and furnish to each holder of
Series C Preferred a certificate setting forth such adjustment or readjustment
and showing in detail the facts upon which such adjustment or readjustment is
based. The Corporation shall, upon the written request at any time of any
holder of Series C Preferred, furnish or cause to be furnished to such holder
a like certificate setting forth (i) such adjustments and readjustments, if
any, (ii) the Conversion Price of the Series C Preferred at the time in
effect, and (iii) the number of shares of Common Stock and the amount, if any,
of other property which at the time would be received upon the conversion of
the Series C Preferred.

                  (f)      STATUS OF CONVERTED STOCK.

                  In case any Shares of Series C Preferred shall be converted
pursuant to Section 4 hereof, the Shares so converted shall be returned to the
status of authorized, unissued and undesignated shares of the Corporation's
Preferred Stock, and all such shares shall no longer be governed by this
Certificate of Designation.

                  (g)      FRACTIONAL SHARES.

                  In lieu of any fractional shares in the aggregate to which
the holder of Series C Preferred would otherwise be entitled upon conversion,
the Corporation shall pay cash equal to such fraction multiplied by the fair
market value of one share of Common Stock as determined by the Board of
Directors in the good faith exercise of its reasonable business judgment.

                  (h)      MISCELLANEOUS.

                           (i)      All calculations under this Section 4
shall be made to the nearest cent or to the nearest one hundredth (1/100) of a
share, as the case may be.

                           (ii)     The holders of at least 50% of the
outstanding Series C Preferred shall have the right to challenge any
determination by the Board of Directors of fair market value pursuant to this
Section 4, in which case such determination of fair market value shall be made
by an independent appraiser selected jointly by the Board of Directors and
such holders, the cost of such appraisal to be borne equally by the
Corporation and such holders. If the Board of Directors and such holders
cannot agree on an independent appraiser, each shall select an independent
appraiser and such two independent appraisers shall select one independent
appraiser to make such determination.

                           (iii)    No adjustment in the Conversion Price of
the Series C Preferred will be made if such adjustment would result in a
change in such Conversion

SERIES C CERTIFICATE OF DESIGNATION - Page 10

<PAGE>

Price of less than $0.01. Any adjustment of less than $0.01 which is not made
shall be carried forward and shall be made at the time of and together with
any subsequent adjustment which, on a cumulative basis, amounts to an
adjustment of $0.01 or more in such Conversion Price.

                  (i)      NO IMPAIRMENT.

                  The Corporation will not through any reorganization,
recapitalization, transfer of assets, consolidation, merger, dissolution,
issue or sale of securities or any other voluntary action, avoid or seek to
avoid the observance or performance of any of the terms to be observed or
performed hereunder by the Corporation, but will at all times in good faith
assist in the carrying out of all the provisions of this Section 4 and in the
taking of all action as may be necessary or appropriate in order to protect
the conversion rights of the holders of Series C Preferred against impairment.

                  (j)      RESERVATION OF STOCK ISSUABLE UPON CONVERSION.

                  The Corporation shall at all times reserve and keep
available out of its authorized but unissued shares of Common Stock, solely
for the purpose of effecting the conversion of the Shares of Series C
Preferred, such number of its shares of Common Stock as shall from time to
time be sufficient to effect the conversion of all outstanding Shares of
Series C Preferred. If at any time the number of authorized but unissued
shares of Common Stock shall not be sufficient to effect the conversion of all
then outstanding Shares of Series C Preferred, the Corporation will take such
corporate action as may, in the opinion of its counsel, be necessary to
increase its authorized but unissued shares of Common Stock to such number of
shares as shall be sufficient for such purpose.

         Section 5.        VOTING RIGHTS.

                  (a)      GENERAL.

                  Except as otherwise required by law, by Section 5(b) hereof
or by Section 8 hereof, the holder of each Share of Series C Preferred will be
entitled to vote on all matters with the Common Stock as a single class, and
not as a separate class or series. Each Share of Series C Preferred will
entitle the holder to the number of votes per share equal to the full number
of shares of Common Stock into which each Share of Series C Preferred is
convertible on the record date for such vote. The holders of Series C
Preferred shall receive notice of and shall be entitled to attend in person or
by proxy any meeting of the holders of Common Stock.

                  (b)      VOTING FOR DIRECTORS.

                  The holders of the Series C Preferred shall otherwise also
be entitled to

SERIES C CERTIFICATE OF DESIGNATION - Page 11

<PAGE>

vote in the election of directors pursuant to the terms of Section 5(a) above.
In addition, for so long as at least 3,791,900 shares of the Corporation's
Preferred Stock remain outstanding, at any time when Michael Jordan is not a
director of the Corporation, the holders of at least a majority of the shares
of the Corporation's Preferred Stock, voting as a single class, shall be
entitled to nominate and elect one (1) director. Any vacancy on the Board
occurring because of the death, resignation or removal of Michael Jordan or a
director elected by the holders of the Corporation's Preferred Stock, shall be
filled by the vote or written consent of the holders of a majority of the
shares of the Corporation's Preferred Stock. A director nominated and elected
by the holders of the Corporation's Preferred Stock may be removed from the
Board with or without cause by the vote or consent of the holders of the
outstanding class with voting power entitled to elect him or her in accordance
with the Delaware General Corporation Law.

         Section 6.        NOTICES OF RECORD DATE.

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

         Section 7.        NOTICES.

         Any notice required by the provisions of this Certificate to be given
to the holders of Series C Preferred shall be deemed given when deposited in
the United States mail, postage prepaid, and addressed to each holder of
record at such holder's address appearing on the books of the Corporation.

         Section 8.        APPROVAL OF CERTAIN TRANSACTIONS WHILE ANY SERIES C
PREFERRED IS OUTSTANDING.

         So long as not less than 1,990,000 Shares of Series C Preferred are
outstanding, the Corporation shall not, without first obtaining the written
approval of the holders of at least two-thirds of the Series C Preferred then
outstanding, voting as a separate class, take any action that:

                  (a) amends, alters or repeals the Corporation's Bylaws or
Amended and Restated Certificate of Incorporation so as to adversely affect
the preferences, special rights or other powers of Shares of Series C
Preferred;

SERIES C CERTIFICATE OF DESIGNATION - Page 12

<PAGE>

                  (b) increases or decreases the authorized number of Shares
of Series C Preferred;

                  (c) creates any new class or series of shares that has a
preference over or is on a parity with the Series C Preferred with respect to
voting, dividends or liquidation preferences (except that the Corporation may
create and issue the Series A Preferred and the Series B Preferred and may
grant voting rights to shares of a series of preferred stock which have the
right to vote with holders of Common Stock on an as-converted basis, but in
any event not in preference to Shares of Series C Preferred);

                  (d) reclassifies stock into shares having a preference over
or parity with the Series C Preferred with respect to voting, dividends or
liquidation preferences (except that the Corporation may grant voting rights
to shares of a series of preferred stock which have the right to vote with
holders of Common Stock on an as-converted basis, but in any event not in
preference to Shares of Series C Preferred);

                  (e) authorizes any dividend or other distribution (other
than a stock dividend) with respect to the Corporation's Preferred Stock or
the Common Stock (other than cash dividends payable to the holders of Series C
Preferred);

                  (f) repurchases any shares of capital stock of the
Corporation other than the purchase of Common Stock from employees acquired
pursuant to any stock option plan, stock purchase plan, stock award plan or
other incentive plan of the Corporation or the purchase of Common Stock
pursuant to contractual rights to repurchase shares of Common Stock held by
employees, directors or consultants of the Corporation or its subsidiaries
upon termination of their employment or services or pursuant to the exercise
of a contractual right of first refusal, call right or other purchase option
held by the Corporation; provided that in the event the Corporation
repurchases any such shares from one or more employees pursuant to this
Section 8(f), the aggregate value of such permitted repurchases shall not
exceed $1,000,000 (exclusive of any amount of indebtedness owed to the
Corporation by an officer or employee that is canceled or rescinded as part of
a repurchase) in any twelve (12) month period;

                  (g) increases the number of directors of the Corporation to
greater than seven (7) persons;

                  (h) other than Options or shares purchasable on the exercise
of Options, offer Additional Shares of Common Stock at an issue price that is
less than the fair market value for such shares as of the date of issuance;

                  (i) offer or issue any equity security that has a preference
over, more favorable terms than, or is on a parity with the Series C Preferred
with respect to voting, dividends, liquidation preferences or any other
material term or condition; provided, however, the Corporation may create and
issue the Series A Preferred and the Series B

SERIES C CERTIFICATE OF DESIGNATION - Page 13

<PAGE>

Preferred; or

                  (j) effects the consolidation or merger of the Corporation
with or into any other corporation or business entity (other than with or into
a wholly owned domestic subsidiary of the Corporation), the sale or other
transfer in a single transaction or a series of related transactions of all or
substantially all of the assets of the Corporation, or the liquidation,
dissolution, winding-up or reorganization of the Corporation.

                [Remainder of this page intentionally left blank]

SERIES C CERTIFICATE OF DESIGNATION - Page 14

<PAGE>

         IN WITNESS WHEREOF, this Certificate of Designation is hereby
executed by the undersigned officer of DigitalConvergence.:Com Inc., as of
this 19th day of April, 2000.

                                             DIGITALCONVERGENCE.:COM INC.

                                             By: /s/ Patrick V. Stark
                                                ------------------------------
                                                 Patrick V. Stark
                                                 Executive Vice President

ATTEST:

By: /s/ William S. Leftwich
   -----------------------------------
    Name:  William S. Leftwich
    Title: Secretary<PAGE>

                              EMPLOYMENT AGREEMENT

         AGREEMENT made as of August 16, 1999, by and between
DigitalConvergence.com Inc., a corporation incorporated under the laws of the
state of Delaware, with its principal place of business at 4264 Kellway Circle,
Addison, Texas 75001 (the "Company"), and MICHAEL GARIN, residing at the
address set forth at the end of this Agreement (the "Executive").

                               W I T N E S S E T H:

         WHEREAS, the Company and the Executive desire to set forth the terms
and conditions of the Executive's employment by the Company;

         NOW, THEREFORE, the parties hereto agree as follows:

         1. TERM OF EMPLOYMENT. The Executive's employment under this Agreement
shall be for a term commencing on October 4, 1999 and terminating on October 3,
2002, subject to earlier termination as provided in section 5 hereof (the "Term
of Employment"). Each year of the Term of Employment is referred to herein as a
"Contract Year."

         2.       EMPLOYMENT
                  2.1 During the Term of Employment, the Company shall employ
the Executive as its President and Chief Operating Officer, and the Executive
shall serve in such position, perform such services and have such authority,
functions, duties, powers and responsibilities as ordinarily are associated
with such title. The Executive shall faithfully and diligently serve the
Company and shall, as of January 1, 2000, devote all of his business time,
attention, skill and efforts thereto; provided, that the Executive may manage
his passive investments and be involved in charitable interests so long as they
do not interfere or conflict with the performance of the Executive's duties
hereunder. Through December 31, 1999, Executive may continue to perform
services on a part-time basis at Executive's discretion for his current
employer. The Executive shall be based in New York City.

<PAGE>

         3.       COMPENSATION AND OTHER REMUNERATION.

                  3.1 BASE SALARY. The Company shall pay to the Executive
during the Term of Employment base salary at the annual rate of Two Hundred
Fifty Thousand Dollars ($250,000); provided, that Executive's base salary shall
be increased to Four Hundred Thousand Dollars ($400,000) at such time as the
Company closes a financing or financings which raise(s) an aggregate of $40
million; provided further, that Executive's base salary shall be further
increased at such time as the Company completes an initial public offering, to
a level commensurate with presidents of comparable companies at comparable
stages of development. Base salary will be paid in accordance with the
customary payroll practices of the Company and shall be subject to required
payroll deductions and withholdings. The compensation due to Executive
hereunder shall be due and payable notwithstanding any compensation which
Executive may earn from any other entity or outside source.

                  3.2 BONUS. The Executive shall be eligible to receive a bonus
in respect of each Contract Year in such amount, if any, as may be determined
by the Company's board of directors.

                  3.3 VACATION. The Executive shall be entitled to a reasonable
number of days of vacation during each Contract Year, scheduled in advance with
the Company to avoid excessive disruption of the Company's operations.

                  3.4      STOCK OPTIONS.

                           3.4.1.   Pursuant to one or more stock option
agreements (hereafter referred to as the "Stock Option Agreement") dated the
date hereof, the Company shall grant to Executive stock options, under and
pursuant to the Company's 1999 Stock Option Plan, to purchase four thousand
(4,000) shares of the Company's common stock, $.01 par value ("Common Stock"),
at the price of Two Thousand Eighty-Five Dollars ($2,085) per share. Twenty
five percent (25%) of these options will vest immediately upon grant, and the
balance

                                      2
<PAGE>

will vest in thirds on the last day of the first, second and third Contract
Year, provided Executive is employed on such dates, except as otherwise
provided in the last sentence hereof. The Stock Option Agreement will provide
that the maximum number of options which may be issued in the form of incentive
stock options pursuant to Section 422 of the Internal Revenue Code will be so
issued, with the balance of the options granted pursuant hereto to be issued as
non-qualified options. The Stock Option Agreement will further provide that if
the Executive dies during the Term of Employment or if the Company terminates
this Agreement due to his disability (as described below) or without "Cause"
(as defined below), or the Executive terminates this Agreement for "Good
Reason" (as defined below), all unvested options shall immediately become
exercisable.

                  3.4.2. All vested options will be exercisable for a period of
ten (10) years from the date of grant, regardless of whether this Agreement has
terminated. Any options granted in the form of incentive stock options which
are not exercised within three (3) months of the termination of employment
(other than due to death or disability) or twelve (12) month in the event of
termination due to disability automatically shall be converted into
non-qualified options.

         4.       BENEFITS; REIMBURSEMENT OF BUSINESS EXPENSES.

                  4.1 BENEFITS. The Executive shall participate in all benefit
plans of the Company generally available to its employees and/or to any senior
executive of the Company, whether n ow existing or hereafter established
(collectively, the "Benefit Plans"). The extent of Executive's participation in
the Benefit Plans shall be at the same level as the most senior executives of
the Company.

                  4.2 REIMBURSEMENT OF BUSINESS EXPENSES. Business expenses
incurred by the Executive in accordance with the Company's policies will be
reimbursed upon the presentation of receipts. Business-related air travel shall
be such class as is determined by Executive in his reasonable discretion.

                                      3
<PAGE>

                  4.3 INSURANCE. During any period that the Executive is
rendering any services hereunder, the Company agrees to cause Executive to be
named as an insured under a director and officer liability insurance policy
which the Company shall obtain.

         5.       TERMINATION.

                  5.1      TERMINATION FOR CAUSE.

                        5.1.1    The Company may terminate this Agreement and
all of the Company's obligations hereunder, other than its obligations set
forth below in this section 5.1, for "Cause." "Cause" shall mean that the
Executive (i) is convicted of a felony, or any misdemeanor involving fraud or
theft, (ii) engages in dishonest behavior which materially adversely affects
the Company, (iii) commits a willful and intentional act having the effect of
materially injuring the reputation or business of the Company, including,
without limitation, habitual use of illegal drugs or alcohol or (iv) materially
breaches this Agreement and, after having been given written notice thereof by
the Company, fails to correct such breach within ten (10) days after receipt of
such notice.

                  5.1.2 In the event of termination by the Company for Cause,
the Company shall have no further obligations to the Executive other than to
pay (i) base salary accrued through the effective date of termination; and (ii)
all other benefits and amounts which may be then due the Executive under the
general provisions then in effect of any Benefit Plan ((i) and (ii)
collectively, the "Termination Entitlements").

                  5.2 TERMINATION DUE TO DEATH. This Agreement shall terminate
upon the Executive's death, and in such event the Company shall have no further
obligations hereunder, other than to pay to the Executive's estate the
Termination Entitlements.

                  5.3 TERMINATION DUE TO DISABILITY. If, during the Term of
Employment, the Executive shall become physically or mentally disabled, whether
totally or partially, so that he is unable to perform the material functions of
his position for periods aggregating one hundred

                                      4
<PAGE>

thirty five (135) days in any twelve (12) month period, the Company shall be
entitled to terminate this Agreement upon written notice to the Executive given
at any time thereafter during which the Executive is still so disabled. Upon
such termination, the Term of Employment shall end, and the Company shall have
no further obligations hereunder other than to pay to the Executive the
Termination Entitlements.

                  5.4 TERMINATION FOR GOOD REASON. "Good Reason" shall mean any
of the following: (i) a material breach by the Company of this Agreement, (ii)
a material diminution of Executive's authority, duties or responsibilities with
the Company or (iii) the assignment to Executive of duties materially
inconsistent with Executive's position with the Company, unless otherwise
approved by the Executive. If there exists an event or condition that
constitutes Good Reason, and such event or condition is not cured within ten
(10) days following Executive's giving the Company notice thereof, Executive at
any time thereafter shall have the right to terminate this Agreement by giving
the Company written notice of such termination, and upon his doing so, the
provisions of sections 3.4.1 and 5.5 and all other relevant provisions hereof
shall apply.

                  5.5 TERMINATION WITHOUT CAUSE OR FOR GOOD REASON. If the
Company terminates this Agreement without Cause (as defined in section 5.1
hereof), or if the Executive terminates this Agreement for Good Reason (as
defined in section 5.4 hereof), in addition to the Termination Entitlements,
the Executive shall be entitled to receive all base salary due for the balance
of the Term of Employment in a lump sum within thirty (30) days of the date of
termination.

                  5.6 STOCK OPTION VESTING. The impact of the termination of
this Agreement on the stock options referred to in section 3 hereof, shall be
as described in section 3 and in the Stock Option Agreements under which such
options shall be issued.

                                      5
<PAGE>

         6. PROTECTION OF CONFIDENTIAL INFORMATION. The Executive acknowledges
that employment by the Company will bring the Executive into close contact with
the confidential affairs of the Company and its affiliates. In recognition of
the foregoing, the Executive covenants and agrees that the Executive will keep
secret all confidential matters of the Company and its affiliates, including,
without limitation, the terms and provisions of this Agreement, and will not use
for his own benefit or intentionally disclose such matters to anyone outside of
the Company, either during or after the Term of Employment, except with the
Company's consent, provided that (i) the Executive shall have no such obligation
to the extent such matters are or become publicly known other than as a result
of the Executive's breach of his obligations hereunder; (ii) the Executive may
disclose such matters to the extent required by applicable laws or governmental
regulations or judicial or regulatory process; and (iii) the Executive may
disclose the terms of this Agreement to his attorney(s), accountant(s) and/or
financial advisor(s).

         7. OWNERSHIP OF WORK PRODUCT. The Executive acknowledges that in the
course of employment hereunder, he may conceive of, discover, or create
inventions or new contributions relating to the subject matter of his employment
(all of the foregoing being collectively referred to herein as "Work Product").
The Executive acknowledges that, unless the Company otherwise agrees, all of
such Work Product shall be owned by and belong exclusively to the Company. The
Executive shall further, unless the Company otherwise agrees in writing, (i)
promptly disclose any such Work Product to the Company; (ii) assign to the
Company, upon request, the entire rights to such Work Product to the extent not
otherwise owned at law by the Company; and (iii) sign all papers reasonably
necessary to carry out the foregoing.

         8. REPRESENTATIONS. Both Executive and Company represent and warrant
that each is not a party to any agreements or understandings which would prevent
the fulfillment by such party of the terms of this Agreement or which would be
violated by entering into this Agreement and performing such party's obligations
hereunder.

                                      6
<PAGE>

         9. NOTICES. All notices, requests, consents and other communications
required or permitted to be given hereunder shall be in writing and shall be
deemed to have been duly given if delivered personally or three days after being
mailed first-class, postage prepaid, by registered or certified mail, to the
address of the recipient given herein (or such other address of which notice is
given or, in the case of notice to the Executive, to the most recent address set
forth on the records of the Company).

         10. INDEMNIFICATION. The Company shall indemnify Executive against any
and all judgments, fines, amounts paid in settlement and reasonable expenses,
including attorneys' fees, incurred in connection with any action or proceeding,
whether civil, criminal, judicial, legislative, administrative or investigative,
or in connection with an appeal therein, by reason of the fact that Executive is
or was a director, officer, employee, representative or agent of the Company;
provided, however, that no such indemnification shall be made to Executive if an
adverse judgment or other final adjudication establishes that the acts of
Executive were committed in bad faith or were the result of active and
deliberate dishonesty and, in either case, were material to the cause of action
so adjudicated. Without limiting the foregoing, Executive shall also be entitled
to indemnification by the Company against any liability or damage, including
attorney's fees and liabilities under federal and state securities laws, arising
from any act or omission by Executive provided such act or omission was
reasonably believed to be within the scope of Executive's authority or was taken
upon advice of the accountants or legal counsel for the Company. The
indemnification of Executive provided by this section 10 shall continue after
Executive has ceased to be a director, officer, employee, representative or
agent of the Company and shall inure to the benefit of Executive's heirs,
executors, administrators and legal representatives.

                                      7
<PAGE>

         11.      GENERAL.

                  11.1 GOVERNING LAW. This Agreement shall be governed by and
construed and enforced in accordance with the laws of the state of the State of
New York applicable to agreements made and to be wholly performed therein.

                  11.2 CAPTIONS. The section headings contained herein are for
reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.

                  11.3 ENTIRE AGREEMENT; NO OTHER REPRESENTATIONS. The parties
expressly acknowledge, represent and agree that this Agreement is fully
integrated and contains and constitutes the complete and entire agreement and
understanding of the parties with respect to the subject matters hereof and
supersedes any and all agreements, understandings and discussions, whether
written or oral, between the parties with respect to the subject matters hereof,
other than the Proprietary Rights and Information Agreement being entered into
simultaneously herewith. The parties further acknowledge, represent, and agree
that neither has made any representations, promises or statements to induce the
other party to enter into this Agreement, and each party specifically disclaims
reliance, and represents that there has been no reliance, on any such
representations, promises or statements.

                  11.4 ASSIGNABILITY. This Agreement and the parties' rights and
obligations hereunder may not be assigned by Executive or the Company without
the other's prior written consent.

                  11.5 AMENDMENTS; WAIVERS. This Agreement may be amended,
modified, superseded, canceled, renewed or extended, and the terms and covenants
hereof may be waived, only by written instrument executed by both of the parties
hereto, or in the case of a waiver, by the party waiving compliance. The failure
of either party at any time or times to require performance of any provisions
hereof shall in no manner affect such party's right at a later time to enforce
the same. No waiver by either party of the breach of any term or covenant
contained

                                      8
<PAGE>

in this Agreement, whether by conduct or otherwise, in any one or more
instances, shall be deemed to be, or construed as, a further or continuing
waiver of any such breach, or a waiver of the breach of any other term or
covenant contained in this Agreement.

                  11.6 CONSTRUCTION. No presumption will be made or inference
drawn because the attorneys for one of the parties drafted this Agreement or
because of its drafting history.

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the date first above written.

                                   DigitalConvergence.com Inc.

                                   By:  /s/ J. Jovan Philyaw
                                       ----------------------------------
                                   Its: C.E.O.
                                       ----------------------------------

                                   MICHAEL GARIN

                                   Signature: /s/ Michael Garin
                                             ----------------------------
                                   Address:   49 Moore Road
                                             ----------------------------
                                              Bronxville, N.Y. 10708
                                             ----------------------------

                                      9

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