Document:

<PAGE>

                                                               EXECUTION VERSION

     WAIVER, SECOND AMENDMENT AND AGREEMENT, dated as of March 29, 2000 (this
"Second Amendment"), to the CREDIT AGREEMENT, dated as of December 20, 1996, as
amended and restated through December 17, 1997, and as further amended by the
Waiver and First Amendment dated as of December 16, 1998 (and as otherwise
amended, supplemented or modified, the "Credit Agreement"), among SAFELITE GLASS
CORP., a Delaware corporation (the "Borrower"), the lenders from time to time
party thereto (the "Banks"), THE CHASE MANHATTAN BANK, as Administrative Agent,
and BANKERS TRUST COMPANY, as Syndication Agent.

                              W I T N E S S E T H :
                              - - - - - - - - - -

     WHEREAS, the Borrower, the Banks, the Administrative Agent and the
Syndication Agent are parties to the Credit Agreement, pursuant to which the
Banks have made extensions of credit to, or for the benefit of, the Borrower;

     WHEREAS, the Borrower has advised the Banks that certain Defaults and
Events of Default under the Credit Agreement will occur on or around March 31,
2000, and, in connection therewith, has requested that the Banks agree to waive
such Defaults and Events of Default and further agree to amend and modify the
Credit Agreement in certain respects;

     WHEREAS the Banks are willing to agree to the requested waivers, amendments
and modifications but only on the terms and subject to the conditions set forth
herein;

     NOW THEREFORE, in consideration of the premises and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
Borrower, the Banks, the Administrative Agent and the Syndication Agent hereby
agree as follows:

     SECTION 1. DEFINITIONS.

     Capitalized terms used herein and not otherwise defined shall have their
respective meanings set forth in the Credit Agreement and the following terms
shall have the following meanings:

     "Second Amendment Effective Date" shall have the meaning assigned in
     Section 5.1 hereof.

     "Second Amendment Period" shall mean the period commencing as of the Second
     Amendment Effective Date and ending on the earlier to occur of (i) June 9,
     2000 and (ii) the date of the occurrence of any Event of Default (other
     than the Events of Default waived pursuant to Section 4 hereof).

<PAGE>

     SECTION 2. AMENDMENTS.

     2.1 Amendment to Section 1.08 of the Credit Agreement. Section 1.08 of the
Credit Agreement is hereby amended by deleting clause (d) of said Section in its
entirety and inserting in lieu thereof the following new clause (d):

     "(d) Interest shall accrue from and including the date of any Borrowing to
     but excluding the date of any repayment thereof and shall be payable (i) in
     respect of each Base Rate Loan, monthly in arrears on the last day of each
     month, (ii) in respect of each Eurodollar Loan, on (x) the date of any
     prepayment or repayment thereof (on the amount prepaid or repaid), (y) the
     date of any conversion into a Base Rate Loan pursuant to Section 1.06, 1.09
     or 1.10(b), as applicable (on the amount converted) and (z) the last day of
     each Interest Period applicable thereto and, in the case of an Interest
     Period in excess of one month, on each date occurring at one month
     intervals after the first day of such Interest Period and (iii) in respect
     of each Loan, at maturity (whether by acceleration or otherwise) and, after
     such maturity, on demand.".

     2.2 Amendment to Section 3.01 of the Credit Agreement. Section 3.01 of the
Credit Agreement is hereby amended by deleting from each of clauses (a), (b) and
(c) of said Section the phrase "quarterly in arrears on each Quarterly Payment
Date" and inserting in lieu thereof each such time the phrase "monthly in
arrears on the last day of each month" appears.

     2.3 Amendment to Section 4.02 of the Credit Agreement. (a) Section 4.02 of
the Credit Agreement is hereby amended by deleting clause (c) of paragraph (A)
of said Section in its entirety and inserting in lieu thereof the following new
clause (c):

     "(c) On the Business Day after the date of receipt thereof by the Borrower
     and/or any of its Subsidiaries of Cash Proceeds from any Asset Sale or any
     proceeds from any Recovery Event (except with respect to Asset Sales of the
     type described in the parenthetical to Section 8.02(e)), an amount equal to
     100% of the Net Cash Proceeds from such Asset Sale or Recovery Event, as
     the case may be, shall be applied as a mandatory repayment of principal of
     the Term Loans (with the A TL Percentage of such amount to be applied as a
     repayment of the A Term Loans, the B TL Percentage of such amount to be
     applied as a repayment of the B Term Loans and the C TL Percentage of such
     amount to be applied as a repayment of the C Term Loans, in each case
     subject to modification of such application as set forth in Section
     4.02(C)).".

     (b) Section 4.02 of the Credit Agreement is hereby further amended by
deleting clause (d) of paragraph (A) of said Section in its entirety and
inserting in lieu thereof the following new clause (d):

     (d) On the Business Day after the date of the receipt thereof by the
     Borrower and/or any of its Subsidiaries, an amount equal to 100% of the
     cash proceeds (net of underwriting discounts and commissions and other
     reasonable costs associated therewith) of the incurrence of Indebtedness or
     the issuance or sale of equity securities by the Borrower and/or any of its
     Subsidiaries (other than Indebtedness permitted to be

                                       2

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     incurred by Section 8.04 as such section is in effect on the Second
     Amendment Effective Date) shall be applied as a mandatory repayment of
     principal of the Term Loans (with the A TL Percentage of such amount to be
     applied as a repayment of the A Term Loans, the B TL Percentage of such
     amount to be applied as a repayment of the B Term Loans and the C TL
     Percentage of such amount to be applied as a repayment of the C Term Loans,
     in each case subject to modification of such application as set forth in
     Section 4.02(C)).".

     (c) Section 4.02 of the Credit Agreement is hereby further amended by
deleting clause (f) of paragraph (A) of said Section in its entirety and
inserting in lieu thereof the following new clause (f):

     "(f) [Reserved]".

     (d) Section 4.02 of the Credit Agreement is hereby further amended by
deleting clause (i) of paragraph (A) of said Section and inserting in lieu
thereof the following new clause (i):

     "(i) [Reserved]".

     (e) Section 4.02 of the Credit Agreement is hereby further amended by
deleting clause (b) of paragraph (B) of said Section in its entirety and
inserting in lieu thereof the following new clause (b):

     "(b) All repayments of A Term Loans, B Term Loans and C Term Loans pursuant
     to Section 4.02(A)(c), (d) or (e) shall be applied to reduce the then
     remaining Scheduled Repayments of the respective Facility in inverse order
     of maturity.".

     2.4 Amendment to Section 7.01 of the Credit Agreement. Section 7.01 of the
Credit Agreement is hereby amended by deleting from clause (a) of said Section
the phrase "Within 45 days" and inserting in lieu thereof the phrase "Within 30
days".

     2.5 Amendment to Section 8.02 of the Credit Agreement. (a) Section 8.02 of
the Credit Agreement is hereby amended by deleting clause (e) of said Section in
its entirety and inserting in lieu thereof the following new clause (e):

     "(e) the Borrower and its Subsidiaries may sell assets for fair market
value, provided that (i) the aggregate sale proceeds from all assets subject to
such sales pursuant to this clause (e) shall not exceed $10,000,000 in any
fiscal year of the Borrower and (ii) the Net Cash Proceeds from sales described
in (i) above are applied to repay Term Loans as provided in Section 4.02(A)(c);
(except that no such prepayment shall be required with respect to the sale of
any asset for which the Net Cash Proceeds is less than $20,000).".

     (b) Section 8.02 of the Credit Agreement is hereby further amended by
deleting clause (f) of said Section in its entirety and inserting in lieu
thereof the following new clause (f):

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     "(f) [Reserved]".

     (c) Section 8.02 of the Credit Agreement is hereby further amended by
deleting clause (m) of said Section in its entirety and inserting in lieu
thereof the following new clause (m):

     "(m) [Reserved]".

     2.6 Amendment to Section 8.03 of the Credit Agreement. Section 8.03 of the
Credit Agreement is hereby amended by deleting clause (o) of said Section in its
entirety and inserting in lieu thereof the following new clause (o):

     "(o) additional Liens incurred by the Borrower and its Subsidiaries so long
     as the value of the property subject of such Liens, and the Indebtedness
     and other obligations secured thereby, do not exceed $500,000 in the
     aggregate at any time, and no more than $100,000 in the aggregate of such
     Liens first arose, or related Indebtedness was first incurred, after the
     Second Amendment Effective Date.".

     2.7 Amendment to Section 8.04 of the Credit Agreement. (a) Section 8.04 of
the Credit Agreement is hereby amended by deleting clause (h) of said Section in
its entirety and inserting in lieu thereof the following new clause (h):

     "(h) [Reserved]".

     (b) Section 8.04 of the Credit Agreement is hereby further amended by
deleting clause (k) of said Section in its entirety and inserting in lieu
thereof the following new clause (k):

     "(k) [Reserved]".

     (c) Section 8.04 of the Credit Agreement is hereby further amended by
deleting clause (m) of said Section in its entirety and inserting in lieu
thereof the following new clause (m):

     "(m) additional Indebtedness of the Borrower not otherwise permitted
     hereunder so long as the outstanding principal amount of such Indebtedness
     does not exceed $10,000,000 at any one time and no more than $500,000 of
     such Indebtedness was first incurred after the Second Amendment Effective
     Date;".

     (d) Section 8.04 of the Credit Agreement is hereby further amended by
inserting at the end of clause (n) of said Section the phrase "and such
Indebtedness was first incurred prior to the Second Amendment Effective Date".

     (e) Section 8.04 of the Credit Agreement is hereby further amended by
inserting at the end of each clause (o) of said Section the phrase "so long as
such Indebtedness was first incurred prior to the Second Amendment Effective
Date".

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     2.8 Amendment to Section 8.06 of the Credit Agreement. (a) Section 8.06 of
the Credit Agreement is hereby amended by inserting into clause (f) of said
Section: (i) the phrase "at any time prior to the Second Amendment Effective
Date" at the beginning of subclause (ii) of such clause (f); and (ii) inserting
the phrase "first made prior to the Second Amendment Effective Date" immediately
following the word "investments" on the tenth line of clause (f).

     (b) Section 8.06 of the Credit Agreement is hereby further amended by
deleting from clause (i) of said Section the reference to "$5,000,000" contained
therein and inserting in lieu thereof "$1,000,000".

     (c) Section 8.06 of the Credit Agreement is hereby further amended by
deleting clause (n) of said Section in its entirety and inserting in lieu
thereof the following new clause (n):

     "(n) [Reserved]".

     2.9 Amendment to Section 8.07 of the Credit Agreement. Section 8.07 of the
Credit Agreement is hereby amended by deleting clauses (ii) and (iii) of said
Section in their entirety and inserting in lieu thereof the following new
clauses (ii) and (iii):

     "(ii) [Reserved]

     (iii) [Reserved]".

     2.10 Amendment to Section 8.08 of the Credit Agreement. Section 8.08 of the
Credit Agreement is hereby amended by deleting the proviso from subclause (iii)
of the first sentence of said Section and inserting in lieu thereof the phrase
"and, in any event, no management fees shall be paid to Lee and/or Lee
Affiliates or Belron and/or Belron Affiliates during the Second Amendment
Period.".

     2.11 Amendment to Section 8.09 of the Credit Agreement. Section 8.09 of the
Credit Agreement is hereby amended by deleting clauses (d), (e) and (f) of said
Section and inserting in lieu thereof the following new clauses (d), (e) and
(f):

     "(d) [Reserved]

     (e) [Reserved]

     (f) [Reserved]".

     2.12 Amendment to Section 8.13 of the Credit Agreement. Section 8.13 of the
Credit Agreement is hereby amended by deleting the paragraph beginning with
"Notwithstanding the foregoing" from said Section in its entirety.

     2.13 Amendment to Section 10 of the Credit Agreement. Section 10 of the
Credit Agreement is hereby amended by (i) deleting in its entirety the
definition of the term "Swingline Expiry Date", and (ii) adding the following
new definitions in their proper alphabetical order:

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     ""Second Amendment" shall mean the Waiver, Second Amendment and Agreement,
     dated as of March 29, 2000, to this Agreement.

     "Second Amendment Effective Date" shall have the meaning assigned thereto
     in the Second Amendment.

     "Second Amendment Period" shall have the meaning assigned thereto in the
     Second Amendment.

     "Swingline Expiry Date" shall mean the Second Amendment Effective Date.".

     2.14 Amendment to Article 12 of the Credit Agreement. Article 12 of the
Credit Agreement is hereby amended by inserting the following new Section 12.12A
immediately following Section 12.12 of said Article:

     "12.12A Priority Provisions. Notwithstanding any provision in this
     Agreement, neither (i) Section 7.4(a)(ii) of the Security Agreement nor
     (ii) any provision in this Agreement or any other Credit Document providing
     for priority rights in all or any part of the Collateral for the
     Obligations of any Bank may be changed, waived, discharged or terminated
     unless such change, waiver, discharge or termination is in writing signed
     by the Credit Parties party to the applicable Credit Document, the Required
     Banks and each Bank (other than a Defaulting Bank) with Obligations having
     such priority rights that are being directly affected by such change,
     waiver, discharge or termination.".

     2.15 Amendment to Section 12.01 of the Credit Agreement. Section 12.01 of
the Credit Agreement is hereby amended by deleting in its entirety the proviso
to subclause (ii) of said Section.

     2.16 Amendment to Section 7.4 of the Security Agreement. Section 7.4 of the
Security Agreement is hereby amended by deleting clause (a) of said Section in
its entirety and inserting in lieu thereof the following new clause (a):

     "(a) If an Event of Default shall have occurred and be continuing then,
     notwithstanding anything to the contrary contained in the Credit Agreement,
     the Collateral Agent shall apply all moneys collected or received by it
     (whether as Collateral Agent or Administrative Agent) upon any sale or
     other disposition of the Collateral (as defined in the Credit Agreement,
     including, without limitation, all Collateral hereunder and all collateral
     under the Pledge Agreement, the Mortgages or any Additional Security
     Document) as follows:

          (i) first, to the payment in full of all Obligations owing to the
          Collateral Agent and the Administrative Agent of the type provided in
          clauses (iii) and (iv) of the definition of Obligations (it being
          understood that the reference to the term "Collateral" in such
          definition shall be deemed to be "Collateral" as defined in the Credit
          Agreement);

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          (ii) second, solely from moneys collected or received by the
          Collateral Agent upon any sale or other disposition of the Collateral
          hereunder and all collateral under the Pledge Agreement, to the
          payment in full (including the cash collateralization of outstanding
          but undrawn Letters of Credit in an amount equal to 105% of the
          undrawn amount thereof) as provided in Section 7.4(c) hereof of the
          outstanding Obligations comprised of the aggregate amount of (i)
          outstanding Revolving Loans in excess of the amount of Revolving Loans
          outstanding on the Second Amendment Effective Date, together with
          unpaid interest thereon, and (ii) all Unpaid Drawings (as defined in
          the Credit Agreement) and all other obligations arising under Section
          2.03 of the Credit Agreement in respect of Letters of Credit (as
          defined in the Credit Agreement), whether drawn or undrawn, first
          issued after the Second Amendment Effective Date (as defined in the
          Credit Agreement), with each Secured Creditor receiving an amount
          equal to its ratable share of the amount available to be distributed
          if the moneys are insufficient to pay in full all such Obligations;

          (iii) third, to the payment in full as provided in Section 7.4(c)
          hereof of the remaining outstanding Obligations, with each Secured
          Creditor receiving an amount equal to its Pro Rata Share of the amount
          available to be distributed if the moneys are insufficient to pay in
          full all such Obligations; and

          (iv) fourth, to the extent proceeds remain after the application
          pursuant to the preceding clauses (i), (ii) and (iii) and following
          the termination of this Agreement pursuant to Section 10.8 hereof, to
          the relevant Assignor or, to the extent directed by such Assignor or a
          court of competent jurisdiction, to whomever may be lawfully entitled
          to receive such surplus.".

     2.17 Amendment to Article IX of the Security Agreement. Article IX of the
Security Agreement is hereby amended by deleting from the "Obligations"
definition of said Article each parenthetical immediately following the phrase
"all obligations" and inserting in lieu thereof each such time the following new
parenthetical:

          "(including interest accruing on or after the filing of any petition
          in bankruptcy or for reorganization relating to the Borrower or any
          Subsidiary of the Borrower whether or not a claim for post-filing
          interest is allowed in such proceedings)".

     SECTION 3. AGREEMENTS.

     3.1 Limitation on Extensions of Credit. (a) Unless the Required Banks and
all of the Revolving Banks under the Revolving Credit Facility otherwise agree,
notwithstanding anything to the contrary contained in the Credit Agreement, the
Borrower shall not have the right to, and shall not, request a Borrowing of
Revolving Loans during the Second Amendment Period.

     (b) Any Letter of Credit issued during the Second Amendment Period for the
account of the Borrower shall have an expiry date occurring not later than 120
days after such Letter of Credit's date of issuance, provided that any such
Letter of Credit may be automatically

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extendable for periods of up to 120 days so long as such Letter of Credit
provides that the Letter of Credit Issuer retains an option, satisfactory to the
Letter of Credit Issuer, to terminate such Letter of Credit by giving notice to
the Borrower and the beneficiary under any such Letter of Credit not less than
thirty (30) days prior to each scheduled extension date.

     3.2 Cash Flow Forecasts. During the Second Amendment Period, the Borrower
shall deliver to the Administrative Agent and each Bank on the Wednesday of
every second calendar week, commencing with the first Wednesday to occur during
the Second Amendment Period, a forecast of the cash flows, cash balances and
line availability of the Borrower for the period of four consecutive calendar
weeks beginning in the week in which the applicable Wednesday occurs together
with a comparison of the actual cash flows, cash balances and line availability
of the Borrower for the two week period immediately preceding the most recently
forecasted cash flows of the Borrower and its Restricted Subsidiaries for the
week in which such Wednesday occurs.

     3.3 Engagement of The Blackstone Group. During the Second Amendment Period,
the Borrower shall continue its engagement of The Blackstone Group L.P. as
financial consultants and review from time to time with the Administrative Agent
and the Banks the scope and terms of such engagement.

     3.4 Payment of Expenses. In addition to its obligations under Section 12.01
of the Credit Agreement (which obligations the Borrower hereby acknowledges and
confirms), the Borrower agrees:

     (a) to pay all reasonable out-of-pocket costs and expenses of the
     Administrative Agent incurred in connection with (i) the negotiation,
     preparation, execution and delivery of this Second Amendment and (ii) from
     and after the Second Amendment Effective Date, the consideration, analysis,
     review, negotiation, preparation, execution and delivery of any
     recapitalization or restructuring proposals with respect to the obligations
     of the Borrower (including, without limitation, the reasonable fees and
     expenses of counsel, investment bankers, and financial or other advisors
     retained by the Administrative Agent); and

     (b) to pay all reasonable out-of-pocket costs and expenses of each Bank
     incurred in connection with (i) the negotiation, execution and delivery of
     this Second Amendment and (ii) from and after the Second Amendment
     Effective Date, the review and analysis of (but not litigation with respect
     to) the Credit Documents and the collateral security for the obligations
     thereunder, the consideration, analysis and review of any recapitalization
     or restructuring proposals with respect to the obligations of the Borrower
     and the negotiation, execution and delivery of any amendment, waiver or
     consent relating to the Credit Documents (including, without limitation,
     the reasonable fees and expenses of counsel), provided that the Borrower's
     obligation under this paragraph (b) shall be limited to an amount not to
     exceed the lesser of $10,000 for each Bank for each calendar quarter and
     $150,000 in the aggregate for all of the Banks (but not the Agents) per
     calendar quarter, with each Bank having such expenses during any

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<PAGE>

     calendar quarter receiving a ratable share of $150,000 in the event that
     the aggregate amount of expenses payable hereunder exceed $150,000 in such
     calendar quarter.

     3.5 Subsidiaries. The Borrower hereby agrees that, notwithstanding anything
to the contrary contained in the Credit Agreement, from and after the Second
Amendment Effective Date, the Borrower shall not have the right to, and shall
not, create or acquire any Subsidiaries.

     3.6 Limitation on Voluntary Prepayments. The Borrower hereby agrees that,
notwithstanding anything to the contrary contained in the Credit Agreement, from
and after the Second Amendment Effective Date, the Borrower shall not have the
right to, and shall not, make any voluntary prepayments of the Loans except (i)
the Borrower shall have the right to prepay Revolving Loans (if any) first made
after the Second Amendment Effective and (ii) if there are no Letters of Credit
or Revolving Loans which were first issued or made, as applicable, after the
Second Amendment Effective outstanding, the Borrower shall have the right to
prepay the Loans so long as any prepayment of the Term Loans or Revolving Loans
is accompanied by a prepayment of the other, with such prepayments being in
amounts that reflect equal percentages of the outstanding Revolving Loans and
the outstanding Term Loans, respectively.

     SECTION 4. WAIVERS

     The Banks hereby waive, during the Second Amendment Period, any Default or
Event of Default (a) under Section 9.03 of the Credit Agreement arising as a
result of the Borrower's failure to (i) maintain the minimum Interest Coverage
Ratio and minimum Leverage Ratio required pursuant to Sections 8.11 and 8.12 of
the Credit Agreement, respectively, for the Test Period ending on or about March
31, 2000 and (ii) maintain the Interest Rate Protection Agreements required
pursuant to Section 7.12 of the Credit Agreement and (b) under Section 9.02 of
the Credit Agreement arising as a result of the inaccuracy of the representation
contained in Section 6.10(e) of the Credit Agreement.

     SECTION 5. MISCELLANEOUS.

     5.1 Effective Date. This Second Amendment will become effective on the date
first set forth above (the "Second Amendment Effective Date") upon the
satisfaction of the following conditions: (a) receipt by the Administrative
Agent of counterparts hereof duly executed and delivered by the Borrower, the
Required Banks and the Majority Banks under the Revolving Credit Facility; (b)
receipt by the Administrative Agent, for the account of each Bank which executes
this Second Amendment, a fee in an amount equal to .125% of the sum of such
Bank's Revolving Credit Commitment and Terms Loans outstanding on the Second
Amendment Effective Date; and (c) the payment by the Borrower of the costs and
expenses of the Administrative Agent owing under Section 12.01 of the Credit
Agreement and for which invoices have been submitted.

     5.2 Representations and Warranties. The Borrower represents and warrants to
each Bank that as of the Second Amendment Effective Date: (a) this Second
Amendment

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<PAGE>

constitutes the legal, valid and binding obligation of the Borrower, enforceable
against it in accordance with its terms, except as such enforcement may be
limited by bankruptcy, insolvency, fraudulent conveyances, reorganization,
moratorium or similar laws affecting creditors' rights generally, by general
equitable principles (whether enforcement is sought by proceedings in equity or
at law) and by an implied covenant of good faith and fair dealing; (b) the
representations and warranties made by the Borrower in the Credit Documents are
true and correct in all material respects on and as of the date hereof (except
to the extent that such representations and warranties are expressly stated to
relate to an earlier date, in which case such representations and warranties
shall have been true and correct in all material respects on and as of such
earlier date); (c) no Default or Event of Default shall have occurred and be
continuing as of such date; and (d) the Borrower is truly and justly indebted to
each of the Administrative Agent, the Syndication Agent and the Banks pursuant
to the Credit Documents, without defense, counterclaim or offset of any kind.

     5.3 Limited Effect. Except as expressly waived or amended hereby, the
Credit Agreement shall continue to be and shall remain in full force and effect
in accordance with its terms, and this Second Amendment shall not constitute the
Banks' consent or indicate their willingness to consent to any other amendment,
modification or waiver of the Credit Agreement or any other Credit Documents.

     5.4 GOVERNING LAW. THIS SECOND AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     5.5 Counterparts. This Second Amendment may be executed by the parties
hereto in any number of separate counterparts and all of said counterparts taken
together shall be deemed to constitute one and the same instrument.

                           [signature pages to follow]

                                       10

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to
be duly executed and delivered by their properly and duly authorized officers as
of the day and year first above written.

                                        SAFELITE GLASS CORP.

                                        By: /s/ D.A. Herron
                                            ------------------------------
                                            Name:  Douglas A. Herron
                                            Title: Senior Vice President & CFO

                                        THE CHASE MANHATTAN BANK, as
                                        Administrative Agent, as
                                        Collateral Agent and as a Bank

                                        By: /s/ Ann Kurinskas
                                            ------------------------------
                                            Name:  Ann Kurinskas
                                            Title: Managing Director

                                        BANKERS TRUST COMPANY, as Syndication
                                        Agent and as a Bank

                                        By: /s/ Gina S. Thompson
                                            ------------------------------
                                            Name:  Gina S. Thompson
                                            Title: Vice President

                                        ABN AMRO BANK, N.V.

                                        By: /s/ William J. Teresky
                                            ------------------------------
                                            Name:  William J. Teresky
                                            Title: Vice President

                                        By: /s/ William J. Fitzgerald
                                            ------------------------------
                                            Name:  William J. Fitzgerald
                                            Title: Senior Vice President

<PAGE>

                                        BANK ONE COLUMBUS

                                        By: /s/ Jeffrey C. Nicholson
                                            ------------------------------
                                            Name:  Jeffrey C. Nicholson
                                            Title: Vice President

                                        THE BANK OF NEW YORK

                                        By: /s/ Albert R. Taylor
                                            ------------------------------
                                            Name:  Albert R. Taylor
                                            Title: Vice President

                                        THE BANK OF NOVA SCOTIA

                                        By: /s/ D.N. Gillespie
                                            ------------------------------
                                            Name:  D.N.Gillespie
                                            Title: Managing Director and
                                                   Unit Head

                                        BANK OF TOKYO-MITSUBISHI TRUST COMPANY

                                        By: /s/ Paul P. Malecki
                                            ------------------------------
                                            Name:  Paul P. Malecki
                                            Title: Vice President

                                        BANQUE NATIONALE DE PARIS

                                        By: /s/ Curt Deane
                                            ------------------------------
                                            Name:  Curt Deane
                                            Title: V. P.

                                        By: /s/ Rosalie C. Hawley
                                            ------------------------------
                                            Name:  Rosalie C. Hawley
                                            Title: Vice President

<PAGE>

                                        CARL MARKS MANAGEMENT CO., L.P.

                                        By: /s/ Robert C. Ruocco
                                            ------------------------------
                                            Name:  Robert C. Ruocco
                                            Title: General Partner

                                        CEREBUS CAPITAL MANAGEMENT, LLC

                                        By:
                                            ------------------------------
                                            Name:
                                            Title:

                                        CREDIT AGRICOLE INDOSUEZ

                                        By:
                                            ------------------------------
                                            Name:
                                            Title:

                                        CREDIT LYONNAIS

                                        By: /s/ Attila Koe
                                            ------------------------------
                                            Name:  Attila Koe
                                            Title: Sr. Vice President

                                        BANK AUSTRIA CREDITANSTALT
                                        CORPORATE FINANCE, INC.

                                        By: /s/ Christina T. Schoen
                                            ------------------------------
                                            Name:  Christina T. Schoen
                                            Title: Executive Vice President

                                        By: /s/ A. W. Seidel
                                            ------------------------------
                                             Name:  A.W. Seidel
                                             Title: Senior Vice President

<PAGE>

                                        CYPRESSTREE INVESTMENT PARTNERS I
                                         By: CyressTree Investment Management
                                             Company, as Investment Advisor

                                        By:
                                            ------------------------------
                                            Name:
                                            Title:

                                        CYPRESSTREE INVESTMENT PARTNERS II
                                         By: CyressTree Investment Management
                                             Company, as Investment Advisor

                                        By:
                                            ------------------------------
                                            Name:
                                            Title:

                                        EATON VANCE INSTITUTIONAL SR. LOAN
                                         By: Eaton Vance Management,
                                             as Investment Advisor

                                        By:
                                            ------------------------------
                                            Name:
                                            Title:

                                        SENIOR DEBT PORTFOLIO
                                         By: Eaton Vance, as Investment Advisor

                                        By:
                                            ------------------------------
                                            Name:
                                            Title:

                                        FLEET BANK, N.A.
                                        (f/k/a BankBoston, N.A.)

                                        By:
                                            ------------------------------
                                            Name:
                                            Title:

<PAGE>

                                        GENERAL ELECTRIC CAPITAL CORPORATION

                                        By: /s/ Gregory L. Hong
                                            ------------------------------
                                             Name:  Gregory L. Hong
                                             Title:  Duly Authorized Signatory

                                        Sankaty Advisors, Inc. as
                                        Collateral Manager for
                                        GREAT POINT CLO 1999-1 LTD.

                                        By: /s/ Diane J. Exter
                                            ------------------------------
                                            Name:  Diane J. Exter
                                            Title: Executive Vice President,
                                                   Portfolio Manager

                                        IBJ WHITEHALL BANK & TRUST CO.

                                        By: /s/ Charles B. Fears
                                            ------------------------------
                                            Name:  Charles B. Fears
                                            Title: Director

                                        IMPERIAL BANK

                                        By:
                                            ------------------------------
                                            Name:
                                            Title:

                                        KZH CYPRESSTREE 1 LLC

                                        By:
                                            ------------------------------
                                            Name:
                                            Title:

                                        KZH III LLC

                                        By:
                                            ------------------------------
                                            Name:
                                            Title:

                                        KZH SHENKMAN LLC

                                        By:
                                            ------------------------------
                                            Name:
                                            Title:

<PAGE>

                                        KZH SOLEIL LLC

                                        By: /s/ Susan Lee
                                            ------------------------------
                                            Name:  Susan Lee
                                            Title: Authorized Agent

                                        MERRILL LYNCH DEBT STRATEGIES PORTFOLIO
                                         By: Merrill Lynch Asset Management,
                                             L.P., as Investment Advisor

                                        By: /s/ Paul Travers
                                            ------------------------------
                                            Name:  Paul Travers
                                            Title: Authorized Signatory

                                        MERRELL LYNCH SENIOR FLOATING RATE
                                        FUND II, INC.

                                        By: /s/ Paul Travers
                                            ------------------------------
                                            Name:  Paul Travers
                                            Title: Authorized Signatory

                                        MERRILL LYNCH SENIOR FLOATING RATE
                                        FUND, INC.

                                        By: /s/ Paul Travers
                                            ------------------------------
                                            Name:  Paul Travers
                                            Title: Authorized Signatory

                                        DEBT STRATEGIES FUND II, INC.

                                        By: /s/ Paul Travers
                                            ------------------------------
                                            Name:  Paul Travers
                                            Title: Authorized Signatory

<PAGE>

                                        MERRILL LYNCH GLOBAL INVESTMENT
                                        SERIES: INCOME STRATEGIES PORTFOLIO
                                         By: Merrill Lynch Asset Management,
                                             L.P., as Investment Advisor

                                        By:
                                            ------------------------------
                                            Name:
                                            Title:

                                        DEBT STRATEGIES FUND, INC.

                                        By: /s/ Paul Travers
                                            ------------------------------
                                            Name:  Paul Travers
                                            Title: Authorized Signatory

                                        MERRILL LYNCH PRIME RATE PORTFOLIO
                                         By: Merrill Lynch Asset Management,
                                             L.P., as Investment Advisor

                                        By: /s/ Paul Travers
                                            ------------------------------
                                            Name:  Paul Travers
                                            Title: Authorized Signatory

                                        METROPOLITAN LIFE INSURANCE COMPANY

                                        By: /s/ James R. Dingler
                                            ------------------------------
                                            Name:  James R. Dingler
                                            Title: Director

<PAGE>

                                        ML CLO XII PILGRIM AMERICA (CAYMAN),
                                        LTD.
                                         By: Pilgrim Investments, Inc.,
                                             as its investment manager

                                        By: /s/ Robert L. Wilson
                                            ------------------------------
                                            Name:  Robert L. Wilson
                                            Title: Vice President

                                        ML CLO XIX STERLING (CAYMAN) LTD.
                                         By: Sterling Asset Management,
                                             as Investment Advisor

                                        By: /s/ Louis A. Pistecchia
                                            ------------------------------
                                            Name:  Louis A. Pistecchia
                                            Title: Executive Vice President

                                        MORGAN STANLEY DEAN WITTER PRIME
                                        INCOME TRUST

                                        By: /s/ Peter Gewirtz
                                            ------------------------------
                                            Name:  Peter Gewirtz
                                            Title: Vice President

<PAGE>

                                        NEW YORK LIFE INSURANCE COMPANY

                                        By: /s/ F. David Melka
                                            ------------------------------
                                            Name:  F. David Melka
                                            Title: Investment Manager

                                        NEW YORK LIFE INSURANCE AND ANNUITY
                                        CORPORATION
                                         By: New York Life Insurance Company

                                        By: /s/ F. David Melka
                                            ------------------------------
                                            Name:  F. David Melkla
                                            Title: Investment Manager

                                        PARIBAS

                                        By: /s/ Brian F. Hewett
                                            ------------------------------
                                            Name:  Brian F. Hewett
                                            Title: Vice President

                                        By: /s/ Ann B. McAloon
                                            ------------------------------
                                            Name:  Ann B. McAloon
                                            Title: Vice President

<PAGE>

                                        PILGRIM AMERICA HIGH INCOME
                                        INVESTMENTS, LTD.
                                         By: Pilgim Investments, Inc.,
                                             as its investment manager

                                        By: /s/ Robert L. Wilson
                                            ------------------------------
                                            Name:  Robert L. Wilson
                                            Title: Vice President

                                        PILGRIM PRIME RATE TRUST
                                         By:  Pilgim Investments, Inc.,
                                         as its investment manager

                                        By: /s/ Robert L. Wilson
                                            ------------------------------
                                            Name:  Robert L. Wilson
                                            Title: Vice President

                                        SENIOR HIGH INCOME PORTFOLIO, INC.

                                        By: /s/ Paul Travers
                                            ------------------------------
                                            Name:  Paul Travers
                                            Title: Authorized Signatory

                                        SEQUILS - PILGRIM I, LTD.
                                         By: Pilgrim Investments, Inc.,
                                             as Investment Advisor

                                        By: /s/ Robert L. Wilson
                                            ------------------------------
                                            Name:  Robert L. Wilson
                                            Title: Vice President

<PAGE>

                                        SPS HIGH YIELD LOAN TRADING

                                        By:
                                            ------------------------------
                                            Name:
                                            Title:

                                        STONEHILL INSTITUTIONAL PARTNERS, LP
                                         By: Stonehill Capital Management LLC,
                                             as Investment Advisors

                                        By: /s/ Wayne Teetsel
                                            ------------------------------
                                            Name:  Wayne Teetsel
                                            Title: General Partner

                                        VAN KAMPEN PRIME RATE INCOME TRUST
                                        By: Van Kampen Investment Advisory Corp.

                                        By: /s/ Darvin D. Pierce
                                            ------------------------------
                                            Name:  Darvin D. Pierce
                                            Title:  Vice President

                                        VAN KAMPEN SENIOR FLOATING RATE
                                        FUND, INC.
                                        By: Van Kampen Investment Advisory Corp.

                                        By: /s/ Darvin D. Pierce
                                            ------------------------------
                                            Name:  Darvin D. Pierce
                                            Title: Vice President<PAGE>

                                                                     EXHIBIT 4.1

                     CERTIFICATE OF DESIGNATION, PREFERENCES
                             AND RIGHTS OF SERIES C
                           CONVERTIBLE PREFERRED STOCK
                                       OF
                    INTEGRA LIFESCIENCES HOLDINGS CORPORATION

            Integra LifeSciences Holdings Corporation, a corporation organized
and existing under the General Corporation Law of the State of Delaware (the
"Corporation"), DOES HEREBY CERTIFY THAT:

      A. Pursuant to authority conferred upon the Board of Directors by the
Amended and Restated Certificate of Incorporation of the Corporation, as amended
(as amended, the "Certificate of Incorporation"), and pursuant to the provisions
of Section 151 of Title 8 of the Delaware Code of 1953, as amended, said Board
of Directors, at a meeting held on February 16, 2000, adopted resolutions
providing for the designation, preferences and relative, participating, optional
and other special rights, and the qualifications, limitations and restrictions
of the Corporation's Series C Convertible Preferred Stock, which resolutions are
as follows:

            WHEREAS, the Certificate of Incorporation of this Corporation
provides for two classes of shares known as Common Stock, par value $.01 per
share, and Preferred Stock, par value $.01 per share; and

            WHEREAS, the Board of Directors of this Corporation is authorized by
the Certificate of Incorporation to provide for the issuance of the shares of
Preferred Stock in series, and by filing a certificate pursuant to the
applicable law of the State of Delaware, to establish from time to time the
number of shares to be included in each such series, and to fix the designation,
preferences and rights of the shares of each such series and the qualifications,
limitations and restrictions thereof.

            NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors deems it
advisable to, and hereby does, designate a Series C Convertible Preferred Stock
and fixes and determines the preferences, rights, qualifications, limitations
and restrictions relating to the Series C Convertible Preferred Stock as
follows:

            1. Designation/Ranking. The shares of such series of Preferred Stock
shall be designated as "Series C Convertible Preferred Stock" (referred to
herein as the "Series C Convertible Preferred Stock"). The Series C Convertible
Preferred Stock shall rank on a parity with the Corporation's Series B
Convertible Preferred Stock, par value $.01 per share (the "Series B Convertible
Preferred Stock"), and senior to the Corporation's Common Stock and all other
Preferred Stock of the Company, with respect to the payment of distributions on
liquidation, dissolution or winding up of the Corporation and with respect to
the payment of dividends.

<PAGE>

            2. Authorized Number. The number of shares constituting the Series C
Convertible Preferred Stock shall be 54,000 shares.

            3. Dividends.

                  (a) The holders of Series C Convertible Preferred Stock shall
be entitled to receive, out of funds legally available for such purpose, annual
cumulative dividends which shall accrue at the rate of 10% per annum, payable
upon the liquidation, dissolution or winding up of the Corporation.

                  (b) Dividends on each share of Series C Convertible Preferred
Stock shall be cumulative and shall accrue from the date of issuance of such
share of Series C Convertible Preferred Stock. The date on which the Corporation
initially issues any share of Series C Convertible Preferred Stock shall be
deemed to be its "Issue Date", regardless of the number of times of transfer of
such shares is made on the stock records maintained by or for the Corporation
and regardless of the number of certificates that may be issued to evidence such
share.

                  (c) In addition to the right to receive dividends pursuant to
Section 3(a) above, each holder of a share of Series C Convertible Preferred
Stock shall have the right, at any time after the 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, but excluding any stock split effected as a stock dividend) to holders
of shares of Common Stock, to receive, out of funds legally available therefor,
a dividend or distribution in an amount equal to the amount of such dividend or
distribution receivable by a holder of the number of shares of Common Stock into
which such share of Series C Convertible 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 Convertible Preferred Stock at the same time
such dividend or distribution is made to the holders of Common Stock.

            4. Liquidation.

                  (a) Upon any liquidation, dissolution or winding up of the
Corporation, whether voluntary or involuntary, in which all or substantially all
of the consideration, if any, received by the Corporation or its stockholders is
in cash, the holders of the shares of Series C Convertible Preferred Stock shall
be paid, before any distribution or payment is made upon any stock ranking on
liquidation junior to the Series C Convertible Preferred Stock, an amount equal
to the greater of (i) $100 per share plus, in the case of each share, an amount
equal to any dividends declared but unpaid thereon, through the date payment
thereof is made available, (the "Redemption Payment") and (ii) the amount that
the holders of the Series C Convertible Preferred Stock would receive if they
were to convert each share of Series C Convertible

                                       2
<PAGE>

Preferred Stock into shares of Common Stock immediately prior to such
liquidation, dissolution or winding up (such amount payable with respect to one
share of Series C Convertible Preferred Stock being sometimes referred to as the
"Liquidation Payment" and with respect to all shares of Series C Convertible
Preferred Stock being sometimes referred to as the "Liquidation Payments").

                  (b) Upon any liquidation, dissolution or winding up of the
Corporation, whether voluntary or involuntary, in which all or substantially all
of the consideration, if any, received by the Corporation or its stockholders is
in securities, the Corporation shall have the option, at its election, of paying
such Liquidation Payments to the holders of the shares of Series C Convertible
Preferred Stock in cash or in a preferred security of the successor entity
having terms substantially similar to the Series C Convertible Preferred Stock.

                  (c) If upon any liquidation, dissolution or winding up of the
Corporation, whether voluntary or involuntary, the assets to be distributed
ratably among the holders of Series B Convertible Preferred Stock and Series C
Convertible Preferred Stock shall be insufficient to permit payment to (i) the
holders of Series B Convertible Preferred Stock of any liquidation payments to
which the holders of Series B Convertible Preferred Stock are entitled pursuant
to the terms of the Series B Convertible Preferred Stock (the "Series B
Liquidation Payments") and (ii) the holders of Series C Convertible Preferred
Stock of the Liquidation Payments, then the entire assets of the Corporation to
be so distributed shall be distributed ratably among the holders of Series B
Convertible Preferred Stock and Series C Convertible Preferred Stock. Upon any
liquidation, dissolution or winding up of the Corporation, after the holders of
Series B Convertible Preferred Stock and Series C Convertible Preferred Stock
shall have been paid in full the Series B Liquidation Payments and Liquidation
Payments, respectively, to which they shall be entitled, the Series B
Convertible Preferred Stock and Series C Convertible Preferred Stock shall be
automatically canceled and the remaining net assets of the Corporation may be
distributed to the holders of stock ranking on liquidation junior to the Series
B Convertible Preferred Stock and Series C Convertible Preferred Stock.

                  (d) Written notice of such liquidation, dissolution or winding
up, stating a payment date, the amount of the Liquidation Payments and the place
where said Liquidation Payments shall be payable, shall be delivered in person,
mailed by certified or registered mail, return receipt requested, or sent by
telecopier or telex, not less than 10 days prior to the payment date stated
therein, to the holders of record of Series C Convertible Preferred Stock, such
notice to be addressed to each such holder at its address as shown by the
records of the Corporation.

                  (e) For purposes of this paragraph 4, a liquidation,
dissolution or winding up of the Corporation shall be deemed to include (i) the

                                       3
<PAGE>

Corporation's sale of all or substantially all of its assets or (ii) the merger
or consolidation of the Corporation into or with any other corporation, in which
all or substantially all of the consideration received by the Corporation or its
stockholders in connection with such sale, merger or consolidation is: (x) in
cash, or (y) in securities of the acquiring company or an affiliate thereof
having a fair market value per share of Common Stock which is lower than the
Conversion Price (as defined below) as last adjusted and in effect at the date
of such liquidation, dissolution or winding up; provided that a liquidation,
dissolution or winding up of the Corporation shall not include a sale, merger or
consolidation in which all or substantially all of the consideration received by
the Corporation or its stockholders in connection therewith is in securities of
the acquiring company or an affiliate thereof having a fair market value per
share of Common Stock which is equal to or greater than the Conversion Price as
last adjusted and in effect on the date of such liquidation, dissolution or
winding up.

                  (f) The Series C Convertible Preferred Stock shall, with
respect to distribution of assets and rights upon the liquidation, dissolution
or winding up of the Corporation, rank on a parity with any class or series of
capital stock of the Corporation hereafter created which expressly provides that
it ranks on a parity with the Series C Convertible Preferred Stock with respect
to distribution of assets and rights upon the liquidation, dissolution or
winding up of the Corporation. The Series C Convertible Preferred Stock shall,
with respect to distribution of assets and rights upon the liquidation,
dissolution or winding up of the Corporation, rank on a parity with the Series B
Convertible Preferred Stock and senior to (i) the Corporation's Series A
Convertible Preferred Stock, $.01 par value per share, and (ii) each class or
series of capital stock of the Corporation hereafter created which does not
expressly provide that it ranks on a parity with or senior to the Series C
Convertible Preferred Stock with respect to distribution of assets and rights
upon the liquidation, dissolution or winding up of the Corporation.

            5. Restrictions. At any time when shares of Series C Convertible
Preferred Stock are outstanding, except where the vote or written consent of the
holders of a greater number of shares of the Corporation is required by law or
by the Corporation's Certificate of Incorporation, and in addition to any other
vote required by law or the Corporation's Certificate of Incorporation, the
Corporation will not:

                  (a) without the approval of the holders of at least 66 _% of
the then outstanding shares of Series B Convertible Preferred Stock and Series C
Convertible Preferred Stock, given in writing or by vote at a meeting,
consenting or voting (as the case may be) together as a single class and
separately from the Common Stock, create, issue or authorize the creation or
issuance of any additional class or series of shares of stock unless the same
ranks junior to the Series C Convertible Preferred Stock as to the distribution
of assets on the liquidation, dissolution or winding up of the Corporation, or
increase the authorized amount of any additional class or

                                       4
<PAGE>

series of shares of stock unless the same ranks junior to the Series C
Convertible Preferred Stock as to the distribution of assets on the liquidation,
dissolution or winding up of the Corporation, or create, issue (other than to
the holder of any shares of Series C Convertible Preferred Stock) or authorize
the creation or issuance of any obligation or security convertible into shares
of Series C Convertible Preferred Stock or into shares of any other class or
series of stock unless the same ranks junior to the Series C Convertible
Preferred Stock as to the distribution of assets on the liquidation, dissolution
or winding up of the Corporation, whether any such creation, issuance,
authorization or increase shall be by means of amendment to the Corporation's
Certificate of Incorporation or by merger, consolidation or otherwise; or

                  (b) without the approval of the holders of at least 66 _% of
the then outstanding shares of Series C Convertible Preferred Stock, given in
writing or by vote at a meeting, consenting or voting (as the case may be)
separately as a series, increase the authorized amount of the Series C
Convertible Preferred Stock or effect any transaction or other action that would
adversely affect the rights, preferences, powers (including, without limitation,
voting powers) and privileges of the Series C Preferred Stock; provided that a
merger or sale of substantially all of the Corporation's assets in which all or
substantially all of the consideration is stock of the acquiring company or an
affiliate thereof shall not require the consent or vote of the holders of Series
C Convertible Preferred Stock separately as a series.

            6. Conversions. The holders of shares of Series C Convertible
Preferred Stock shall have the following conversion rights:

                  (a) Right to Convert. Subject to the terms and conditions of
this paragraph 6, the holder of any share or shares of Series C Convertible
Preferred Stock shall have the right, at its option at any time, to convert any
such shares (or fractions thereof) of Series C Convertible Preferred Stock
(except that upon any liquidation, dissolution or winding up of the Corporation
the right of conversion shall terminate at the close of business on the business
day immediately preceding the date fixed for payment of the amount distributable
on the Series C Convertible Preferred Stock) into such number of fully paid and
nonassessable shares of Common Stock as is obtained by (i) multiplying the
number of shares of Series C Convertible Preferred Stock so to be converted by
$100 and (ii) dividing the result by the conversion price of $9.00 per share or,
in case an adjustment of such price has taken place pursuant to the further
provisions of this paragraph 6, then by the conversion price as last adjusted
and in effect at the date any share or shares of Series C Convertible Preferred
Stock are surrendered for conversion (such price, or such price as last
adjusted, being referred to as the "Conversion Price"). Such rights of
conversion shall be exercised by the holder thereof by giving written notice
that the holder elects to convert a stated number of shares of Series C
Convertible Preferred Stock into Common Stock and by surrender of a certificate
or certificates for the shares so to be converted to the Corporation at its

                                       5
<PAGE>

principal office (or such other office or agency of the Corporation as the
Corporation may designate by notice in writing to the holders of the Series C
Convertible Preferred Stock) at any time during its usual business hours on the
date set forth in such notice, together with a statement of the name or names
(with address) in which the certificate or certificates for shares of Common
Stock shall be issued.

                  (b) Issuance of Certificates; Time Conversion Effected.
Promptly after the receipt of the written notice referred to in subparagraph
6(a) and surrender of the certificate or certificates for the share or shares of
Series C Convertible Preferred Stock to be converted, the Corporation shall
issue and deliver, or cause to be issued and delivered, to the holder,
registered in such name or names as such holder may direct, a certificate or
certificates for the number of whole shares of Common Stock issuable upon the
conversion of such share or shares of Series C Convertible Preferred Stock. To
the extent permitted by law, such conversion shall be deemed to have been
effected and the Conversion Price shall be determined as of the close of
business on the date on which such written notice shall have been received by
the Corporation and the certificate or certificates for such share or shares
shall have been surrendered as aforesaid, and at such time the rights of the
holder of such share or shares of Series C Convertible Preferred Stock shall
cease, and the person or persons in whose name or names any certificate or
certificates for shares of Common Stock shall be issuable upon such conversion
shall be deemed to have become the holder or holders of record of the shares of
Common Stock represented thereby.

                  (c) Fractional Shares; Partial Conversion. No fractional
shares of Common Stock shall be issued upon conversion of Series C Convertible
Preferred Stock into Common Stock and no payment or adjustment shall be made
upon any conversion on account of any cash dividends on the Common Stock issued
upon such conversion. If the number of shares of Series C Convertible Preferred
Stock represented by the certificate or certificates surrendered pursuant to
subparagraph 6(a) exceeds the number of shares converted, the Corporation shall,
upon such conversion, execute and deliver to the holder, at the expense of the
Corporation, a new certificate or certificates for the number of shares (or
fractions thereof) of Series C Convertible Preferred Stock represented by the
certificate or certificates surrendered which are not to be converted. If any
fractional share of Common Stock would, except for the provisions of the first
sentence of this subparagraph 6(c), be delivered upon such conversion, the
Corporation, in lieu of delivering such fractional share, shall pay to the
holder surrendering the Series C Convertible Preferred Stock for conversion an
amount in cash equal to the current market price of such fractional share as
determined in good faith by the Board of Directors of the Corporation.

                  (d) Subdivision or Combination of Common Stock. In case the
Corporation shall at any time subdivide (by any stock split, stock dividend or
otherwise) its outstanding shares of Common Stock into a greater number of
shares, the

                                       6
<PAGE>

Conversion Price in effect immediately prior to such subdivision
shall be proportionately reduced, and, conversely, in case the outstanding
shares of Common Stock shall be combined into a smaller number of shares, the
Conversion Price in effect immediately prior to such combination shall be
proportionately increased.

                  (e) Reorganization, Recapitalization or Reclassification. If
any capital reorganization, recapitalization or reclassification of the capital
stock of the Corporation (other than a merger or consolidation of the
Corporation in which the Corporation is the surviving corporation and which does
not result in a reclassification or change of outstanding shares of Common Stock
or a merger or consolidation which is deemed to be a liquidation, dissolution or
winding up of the Corporation pursuant to paragraph 4) shall be effected in such
a way that holders of Common Stock shall be entitled to receive stock,
securities or assets with respect to or in exchange for Common Stock, then, as a
condition of such reorganization, recapitalization or reclassification, lawful
and adequate provisions shall be made whereby each holder of a share or shares
of Series C Convertible Preferred Stock shall thereupon have the right to
receive, upon the basis and upon the terms and conditions specified herein and
in lieu of the shares of Common Stock immediately theretofore receivable upon
the conversion of such share or shares of Series C Convertible Preferred Stock,
such shares of stock, securities or assets as may be issued or payable with
respect to or in exchange for a number of outstanding shares of such Common
Stock equal to the number of shares of such Common Stock immediately theretofore
receivable upon such conversion had such reorganization or reclassification not
taken place, and in any such case appropriate provisions shall be made with
respect to the rights and interests of such holder to the end that the
provisions hereof (including without limitation provisions for adjustments of
the Conversion Price) shall thereafter be applicable, as nearly as may be, in
relation to any shares of stock, securities or assets thereafter deliverable
upon the exercise of such conversion rights.

                  (f) Notice of Adjustment. Upon any adjustment of the
Conversion Price, then and in each such case the Corporation shall give written
notice thereof, by delivery in person, certified or registered mail, return
receipt requested, telecopier or telex, addressed to each holder of shares of
Series C Convertible Preferred Stock at the address of such holder as shown on
the books of the Corporation, which notice shall state the Conversion Price
resulting from such adjustment, setting forth in reasonable detail the method
upon which such calculation is based.

                  (g) Other Notice. In case at any time:

                        (1) the Corporation shall declare any dividend upon its
      Common Stock payable in cash or stock or make any other distribution to
      the holders of its Common Stock;

                                       7
<PAGE>

                        (2) the Corporation shall offer for subscription pro
      rata to the holders of its Common Stock any additional shares of stock of
      any class or other rights;

                        (3) there shall be any capital reorganization or
      reclassification of the capital stock of the Corporation, or a
      consolidation or merger of the Corporation with or into another entity or
      entities, or a sale, lease, abandonment, transfer or other disposition of
      all or substantially all its assets; or

                        (4) there shall be a voluntary or involuntary
      dissolution, liquidation or winding up of the Corporation;

then, in any one or more of said cases, the Corporation shall give, by delivery
in person, certified or registered mail, return receipt requested, telecopier or
telex, addressed to each holder of any shares of Series C Convertible Preferred
Stock at the address of such holder as shown on the books of the Corporation,
(i) at least 10 days' prior written notice of the date on which the books of the
Corporation shall close or a record shall be taken for such dividend,
distribution or subscription rights or for determining rights to vote in respect
of any such reorganization, reclassification, consolidation, merger,
disposition, dissolution, liquidation or winding up and (ii) in the case of any
such reorganization, reclassification, consolidation, merger, disposition,
dissolution, liquidation or winding up, at least 10 days' prior written notice
of the date when the same shall take place. Such notice in accordance with the
foregoing clause (i) shall also specify, in the case of any such dividend,
distribution or subscription rights, the date on which the holders of Common
Stock shall be entitled thereto and such notice in accordance with the foregoing
clause (ii) shall also specify the date on which the holders of Common Stock
shall be entitled to exchange their Common Stock for securities or other
property deliverable upon such reorganization, reclassification, consolidation,
merger, disposition, dissolution, liquidation or winding up, as the case may be.

                  (h) Stock to be Reserved. The Corporation will at all times
reserve and keep available out of its authorized shares of Common Stock, solely
for the purpose of issuance upon the conversion of Series C Convertible
Preferred Stock as herein provided, such number of shares of Common Stock as
shall then be issuable upon the conversion of all outstanding shares of Series C
Convertible Preferred Stock. The Corporation covenants that all shares of Common
Stock which shall be so issued shall be duly authorized, validly issued, fully
paid and nonassessable by the Corporation and free from all taxes, liens and
charges with respect to the issue thereof, and, without limiting the generality
of the foregoing, the Corporation covenants that it will from time to time take
all such action as may be requisite to assure that the par value per share of
the Common Stock is at all times equal to or less than the

                                       8
<PAGE>

Conversion Price in effect at the time. The Corporation will take all such
action as may be necessary to assure that all such shares of Common Stock may be
so issued without violation of any applicable law or regulation, or of any
requirement of any national securities exchange upon which the Common Stock may
be listed. The Corporation will not take any action which results in any
adjustment of the Conversion Price if the total number of shares of Common Stock
issued and issuable after such action upon conversion of the Series C
Convertible Preferred Stock would exceed the total number of shares of Common
Stock then authorized by the Corporation's Certificate of Incorporation.

                  (i) No Reissuance of Series C Convertible Preferred Stock.
Shares of Series C Convertible Preferred Stock which are converted into shares
of Common Stock as provided herein shall not be reissued as shares of Series C
Convertible Preferred Stock.

                  (j) Issue Tax. The issuance of certificates for shares of
Common Stock upon conversion of Series C Convertible Preferred Stock shall be
made without charge to the holders thereof for any issuance tax in respect
thereof, provided that the Corporation shall not be required to pay any tax
which may be payable in respect of any transfer involved in the issuance and
delivery of any certificate in a name other than that of the holder of the
Series C Convertible Preferred Stock which is being converted.

                  (k) Closing of Books. The Corporation will at no time close
its transfer books against the transfer of any Series C Convertible Preferred
Stock or of any shares of Common Stock issued or issuable upon the conversion of
any shares of Series C Convertible Preferred Stock in any manner which
interferes with the timely conversion of such Series C Convertible Preferred
Stock, except as may otherwise be required to comply with applicable securities
laws.

                  (l) Definition of "Common Stock." As used in this paragraph 6,
the term "Common Stock" shall be deemed to mean (i) the Common Stock, par value
$.01, and (ii) the stock of the Corporation of any class, or series within a
class, whether now or hereafter authorized, which has the right to participate
in the distribution of either earnings or assets of the Corporation without
limit as to the amount or percentage.

                  (m) Minimum Adjustment. No reduction of the Conversion Price
shall be made if the amount of any such reduction would be an amount less than
$.01, but any such amount shall be carried forward and reduction with respect
thereof shall be made at the time of and together with any subsequent reduction
which, together with such amount and any other amount or amounts so carried
forward, shall aggregate $.01 or more.

                                       9
<PAGE>

            7. Future Issuance of Shares; Preemptive Rights.

                  (a) Offering Notice. Except for (i) capital stock of the
Corporation which may be issued to employees, consultants or directors of the
Corporation pursuant to a stock incentive plan or other employee benefit
arrangement approved by the Board of Directors, (ii) a subdivision of the
outstanding shares of Common Stock into a larger number of shares of Common
Stock, (iii) capital stock issued as full or partial consideration for a merger,
acquisition, joint venture, strategic alliance, license agreement or other
similar non-financing transaction, (iv) capital stock issued in connection with
a publicly registered offering, or (v) capital stock issued upon exercise,
conversion or exchange of any Preferred Stock, options or warrants, if the
Corporation wishes to issue any shares of capital stock or any other securities
convertible into or exchangeable for capital stock of the Corporation
(collectively, "New Securities") to any Person (the "Subject Purchaser"), then
the Corporation shall send written notice (the "New Issuance Notice") to the
holders of the Series B Preferred Stock, which New Issuance Notice shall state
(x) the number of New Securities proposed to be issued and (y) the proposed
purchase price per share of the New Securities that the Corporation is willing
to accept (the "Proposed Price").

                  (b) Preemptive Rights; Exercise.

                        (i) For a period of fifteen (15) days after the giving
of the New Issuance Notice as provided in Section 7(a), each holder of the
Series B Preferred Stock (each, a "Preemptive Rightholder") shall have the right
to purchase up to its Proportionate Percentage (as hereinafter defined) of the
New Securities at a purchase price equal to the Proposed Price and upon the
terms and conditions set forth in the New Issuance Notice. Each Preemptive
Rightholder shall have the right to purchase up to that percentage of the New
Securities determined by dividing (a) a number equal to the number of shares of
Common Stock into which the shares of Series C Convertible Preferred Stock then
owned by such Preemptive Rightholder are convertible by (b) the total of (i) the
number of shares of Common Stock then outstanding and (ii) the number of shares
of Common Stock into which all outstanding shares of Preferred Stock are
convertible (the "Proportionate Percentage").

                        (ii) The right of each Preemptive Rightholder to
purchase the New Securities under subsection (i) above shall be exercisable by
delivering written notice of its exercise, prior to the expiration of the 15-day
period referred to in subsection (i) above, to the Corporation, which notice
shall state the amount of New Securities that the Preemptive Rightholder elects
to purchase as provided in Section 7(b)(i). The failure of a Preemptive
Rightholder to respond within the 15-day period shall be deemed to be a waiver
of the Preemptive Rightholder's rights under Section 7(b)(i); provided that each
Preemptive Rightholder may waive its, his or

                                       10
<PAGE>

her rights under Section 7(b)(i) prior to the expiration of the 15-day period by
giving written notice to the Corporation.

                  (c) Closing. The closing of the purchase of New Securities
subscribed for by the Preemptive Rightholders under Section 7(b) shall be held
at the same time and place as the closing of the New Securities subscribed for
by the Subject Purchasers (the "Closing"). At the Closing, the Corporation shall
deliver certificates representing the New Securities, and the New Securities
shall be issued free and clear of all Liens and the Corporation shall so
represent and warrant, and further represent and warrant that the New Securities
shall be, upon issuance of the New Securities to the Preemptive Rightholders and
after payment for the New Securities, duly authorized, validly issued, fully
paid and nonassessable by the Corporation. At the Closing, the Preemptive
Rightholders purchasing the New Securities shall deliver payment in full in
immediately available funds for the New Securities purchased by it, him or her.
At the Closing, all of the parties to the transaction shall execute any
additional documents that are otherwise necessary or appropriate.

                  (d) Sale to Subject Purchaser. The Corporation may sell to the
Subject Purchaser all of the New Securities not purchased by the Preemptive
Rightholders as provided in Section 7(b) on terms and conditions that are no
more favorable to the Subject Purchaser than those set forth in the New Issuance
Notice; provided, however, that the sale is bona fide and made pursuant to a
contract entered into within four (4) months of the earlier to occur of (i) the
waiver by the Preemptive Rightholders of their option to purchase the New
Securities as provided in Section 7(b) and (ii) the expiration of the 15-day
period referred to in Section 7(b). If such sale is not consummated within such
four (4) month period for any reason, then the restrictions provided for in this
Section 7 shall again become effective, and no issuance and sale of New
Securities may be made thereafter by the Corporation without again offering the
New Securities in accordance with this Section 7. The closing of any issue and
purchase contemplated by this Section 7(d) shall be held at the time and place
as the parties to the transaction may agree.

            8. Voting Rights. Holders of Series C Convertible Preferred Stock
shall be entitled to notice of any stockholders' meeting. Except as otherwise
required by law, at any annual or special meeting of the Corporation's
stockholders, or in connection with any written consent in lieu of any such
meeting, each outstanding share of Series C Convertible Preferred Stock shall be
entitled to the number of votes equal to the number of full shares of Common
Stock into which such share of Series C Convertible Preferred Stock is then
convertible (calculated by rounding any fractional share down to the nearest
whole number) on the date for determination of stockholders entitled to vote at
the meeting. Except as otherwise required by law, the Series C Convertible
Preferred Stock and the Common Stock shall vote together as a single class on
each matter submitted to the stockholders, and not by separate class or series.

                                       11
<PAGE>

            9. Optional Redemption.

                  (a) For the purposes of this paragraph 9 the "Target Market
Price" shall mean an amount equal to 2.36 times the Conversion Price as last
adjusted and then in effect.

                  (b) If, at any time after March 1, 2002, for a period of not
less than thirty (30) consecutive trading days, the average closing price of the
Corporation's Common Stock on the principal securities exchange or market on
which such shares are then traded has been equal to or greater than the Target
Market Price, then the Corporation may, at the option of the Board of Directors
of the Corporation, redeem from any source of funds legally available therefor,
in whole or in part, in the manner provided herein, any or all whole number of
shares of Series C Convertible Preferred Stock at any time outstanding for a
cash amount per share to be redeemed equal to the Redemption Payment as defined
in paragraph 4 (the "Redemption Price").

                  (c) Notwithstanding the foregoing, at any time and from time
to time after March 1, 2004, the Corporation may, at the option of the Board of
Directors of the Corporation, redeem from any source of funds legally available
therefor, in whole or in part, in the manner provided herein, any or all whole
number of shares of Series C Convertible Preferred Stock at any time outstanding
for an amount per share to be redeemed equal to the Redemption Price.

            10. Redemption Procedure. At least forty-five (45) days prior to the
date fixed for redemption of the Series C Convertible Preferred Stock pursuant
to paragraph 9, written notice ("Redemption Notice") shall be mailed, postage
prepaid, to each holder of record of the Series C Convertible Preferred Stock at
its address last shown on the records of the Corporation. The Redemption Notice
shall state:

                  (a) whether all or less than all of the outstanding shares of
Series C Convertible Preferred Stock are to be redeemed and the total number of
shares of Series C Convertible Preferred Stock being redeemed;

                  (b) the number of shares of Series C Convertible Preferred
Stock held by the holder that the Corporation intends to redeem;

                  (c) the date of the redemption and the Redemption Price; and

                  (d) that the holder is to surrender to the Corporation, in the
manner and at the place designated, his or her certificate or certificates
representing shares of Series C Convertible Preferred Stock to be redeemed.

                                       12
<PAGE>

            Any failure to mail the notice provided for herein or any defect
therein or in the mailing thereof shall not affect the validity of the
proceedings for the redemption of any shares so to be redeemed.

            On or before the date fixed for any redemption of shares, each
holder of shares of Series C Convertible Preferred Stock to be redeemed on such
date, unless the holder has exercised his right to convert the shares as
provided in Section 6, shall surrender the certificate or certificates
representing such shares of Series C Convertible Preferred Stock to the
Corporation, in the manner and at the place designated in the Redemption Notice,
and thereupon the Redemption Price for such shares shall be payable to the order
of 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 less than all of the shares represented by such certificate are
redeemed, a new certificate shall be issued representing the unredeemed shares.

            If the Redemption Notice is duly given, and if on or prior to the
Redemption Date the Redemption Price is either paid or made available for
payment, then notwithstanding that the certificates evidencing any of the shares
of Series C Convertible Preferred Stock so called for redemption have not been
surrendered, all rights with respect to such shares shall forthwith after the
Redemption Date cease and terminate, except only the right of the holders to
receive the Redemption Price without interest upon surrender of their
certificates therefor.

      B. The recitals and resolutions contained herein have not been modified,
altered or amended and are presently in full force and effect.

      IN WITNESS WHEREOF, the undersigned has executed this Certificate this
21st day of March 2000.

                        INTEGRA LIFESCIENCES HOLDINGS CORPORATION

                        By: /s/ Stuart M. Essig
                            --------------------------------------------------
                            Name:  Stuart M. Essig
                            Title:   President

                                       13

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