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Exhibit 10h  

 
 

BENEFIT EQUALIZATION PLAN
  
    OF
  
    BRISTOL-MYERS SQUIBB COMPANY AND ITS SUBSIDIARY OR
  AFFILIATED CORPORATIONS PARTICIPATING IN THE
  BRISTOL-MYERS SQUIBB COMPANY SAVINGS AND INVESTMENT
PROGRAM
  
    (as amended and restated effective as of January 1, 1996)    
  

	I.
	The
purpose of this plan is to provide benefits for certain employees participating in the Bristol-Myers Squibb Company Savings and Investment Program
("Savings and Investment Program" or "Program") whose funded benefits are or will be limited by application of the Employee Retirement Income Security Act of 1974, as amended ("ERISA") and the
Internal Revenue Code of 1986, as amended (The "Code"). The Plan is intended to be an "excess benefit plan" as that term is defined in Section 3 (36) of ERISA with respect to those
participants whose benefits under the Program have been limited by Section 415 of the Code, and a "top hat" plan meeting the requirements of Sections 201 (2), 301 (a) (3), 401
(a) (1) and 4021 (b) (6) of ERISA with respect to those participants whose benefits under the Program have been limited by Section 401 (a) (17) of the Code. This
plan is a continuation and successor plan to the Bristol-Myers Company and Its Subsidiary of Affiliated Corporations Participating in the Bristol-Myers Company Savings and Investment Program, as in
effect on January 1, 1991 and as amended thereafter (the "Prior Plan"). All amounts accrued under the Prior Plan continue to be accrued under this plan.

	II.
	Administration of the Plan

The
Savings Plan Committee (the "Committee") appointed by the Board of Directors of Bristol-Myers Squibb Company (the "Company") to administer the Savings and Investment Program shall also administer
this Plan. The Committee shall have full authority to determine all questions arising in connection with the Plan, including its interpretation, may adopt procedural rules, and may employ and rely on
such legal counsel, such actuaries, such accountants and such agents as it may deem advisable to assist in the administration of the Plan. Decisions of the Committee shall be conclusive and binding on
all persons. 

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	III.
	Participation in the Plan

Each
participant in the Savings and Investment Program who is employed by a corporation participating in the Program (hereinafter referred to as a "participating employer" which term also includes the
Company) shall be eligible to participate in this Plan whenever (a) the allocation to his account under the Savings and Investment Program, as from time to time in effect, would exceed the
limitations on benefits and contributions imposed by Section 415 of the Code calculated from and after September 2, 1974 or (b) amounts of his compensation would be excluded from
his "Annual Benefit Salary or Wages" determined under the Program by reason of the application of Section 401 (a) (17) of the Code. 

	IV.
	Equalization Benefits Related to the Savings and Investment Program

	A.
	A
participant shall be entitled to equalization benefits under this Plan only for those plan years in which (a) he had elected to have a
percentage of his Annual Benefit Salary or Wages contributed on his behalf to the Program and (b) he also has in effect an election, made prior to the year with respect to which such
contributions relate, to defer a like percentage of his Annual Benefit Salary or Wages and to have such amount credited to this Plan in the manner described in paragraphs B and C of this
Article IV.

	B.
	The
participating employer that employs a participant meeting the requirements of paragraph A for a plan year shall credit, or shall cause to be
credited, a book account to record the amount of such participant's Annual Benefit Salary or Wages that he had elected to have credited to this Plan, commencing at the time such participant is
precluded from having additional contributions made to his accounts under the Savings and Investment Program because of this limitations of Section 415 of the Code, and continuing through the
end of the plan year. Such participating employer shall also credit, or cause to be credited, a book account to record the amount of "Employing Company contributions", if any, that would have been
contributed on such participant's behalf for such plan year to the Program pursuant to the terms of the Program had the amount of the participant's Annual Benefit Salary or Wages credited pursuant to
this paragraph B been instead contributed to the Program. 

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	C.
	The
participating employer that employs a participant meeting the requirements of paragraph A for a plan year shall also credit, or cause to be
credited, a separate book account to record the amount of such participant's Annual Benefit Salary or Wages that he has elected to have credited to this Plan, commencing at the time such participant
is precluded from having additional contributions made to his accounts under the Savings and Investment Program because of the limitations of Section 401 (a) (17) of the Code, and
continuing until the end of the plan year or, if sooner, the time amounts begin to be credited to the participant's book account under the Plan year. No participant may earn credits under both this
paragraph C and under paragraph B at the same time; whenever possible, credits shall be made pursuant to paragraph B prior to this paragraph C. Such participating employer
shall also credit, or cause to be credited, a book account to record the amount of "Employing Company contributions", if any, that would have been contributed on such participant's behalf for such
plan year to the Program pursuant to the terms of the Program had the amount of the participant's Annual Benefit Salary or Wages credited pursuant to this paragraph C been instead contributed
to the Program.

	D.
	The
election to have amounts credited to the Plan may be suspended at the participant's option during any period of time that the participant establishes
to the satisfaction of the Committee that he is undergoing a financial hardship as defined in Article VI of this Plan.

	E.
	Prior
to October 1, 1994, each participant shall be given the opportunity to elect to have credits to his account made on or after
October 1, 1994 deemed to be invested in any one or a combination of the investment funds being offered under the Savings and Investment Program on and after October 1, 1994, (other than
the Company Stock Fund) in 1% increments. In the event a participant fails to make such an election, all such credits shall be deemed to be invested in the investment funds as determined by the
Committee to be most closely resembling the investments funds the participant had elected with respect to the credits to Account made prior to October 1, 1994; provided, however, that where a
participant's existing investment directions had allocated one-third (331/3%) of his Account to each of the three investment funds in existence on September 30, 1994
(other than the Company Stock Fund), the equivalent allocation shall be deemed to be 33%, 33% and 34%, with 34% allocated to the least volatile investment fund (as determined by the Committee) which
most closely resembles the least volatile investment fund which the participant had elected prior to October 1, 1994. 

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Effective
as of the close of business on September 30, 1994 (or as soon as practicable thereafter), each participant's book account shall be revalued as if the credits to his account
representing a type of investment under the Plan was reduced to cash (other than any credits representing a deemed investment in the Fixed Income Fund) and reinvested in such investment fund or funds
being offered on and after October 1, 1994 under the Savings and Investment Program (other than the Company
Stock Fund) as determined by the Committee to most closely resemble the respective investment fund in which such credits were deemed invested prior to October 1, 1994. 

On
and after October 1, 1994, on any business day the participant may, pursuant to telephonic notification with the administrative agent of the Committee (the "Administrative Agent"),
(i) elect to have future credits deemed to be invested, in 1% increments, among such funds established under the Savings and Investment Program, other then the Company Stock Fund, effective as
of the first day of the next payroll period (or as soon as practicable thereafter) and (ii) elect that the credits to his account under this Article IV representing any type of
investment under this Article IV representing any type of investment under the Plan be deemed to be reduced to cash (in 1% increments) and that such deemed cash be invested in such other funds
which the participant shall designate in such election, effective as of the next business day (or as soon as practicable thereafter). Notwithstanding the foregoing, no election under
clause (ii) above with respect to credits accrued prior to October 1, 1994 will be accepted during the period beginning on September 27, 1994 and ending on or about
November 30, 1994 (or as soon as practicable thereafter). Any investment election given by a participant shall continue in effect until changed by the participant. To the extent a participant
makes no election, all such credits shall be deemed to have been invested in the same manner and in the same proportion as elected by the participant with respect to allotments credited to his account
under the Savings and Investment Program (and any changes in such investment elections), except that any election (or change in election) to invest in the Company Stock Fund shall not be honored and
such credits shall be deemed invested in equal amounts in such other funds unless the participant has not elected to have any amounts invested in such other funds, in which case such credits shall be
deemed invested in the Fixed Income Fund established under such Program. Such book accounts shall be revalued each business day as if they had been so invested. 

For
purposes of this Plan, "telephonic notification" shall include any form of communication acceptable to the Administrative Agent, including, telephone, telegraph, satellite or other wireless
communication. A "business day" shall mean any day the New York Stock Exchange is open for business. 

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	F.
	Each
participating employer shall distribute to each participant in this Plan employed by it for whom it maintains book accounts or his beneficiary
designated under this Plan or, if no such designation is made, under the Savings and Investment Program, upon the termination of employment of such participant an amount in cash equal to
(i) the value of his book accounts attributable to credits to his account respecting allotments and deemed earnings and appreciation thereon and (ii) the same percentage of the value of
his book accounts attributable to the deemed contributions of the participating employer as the percentage of his account balance under the Savings and Investment Program which is vested at the time
of termination of his employment less (iii) the amount of any distribution for financial hardship made pursuant to Section VI (the participant's "Account Balance"). 

Distribution
to participants terminating employment on or after April 1, 1995, who, as of the date of termination, have not attained age 55 with 10 or more years of service, shall be paid in the form
of a single lump sum payment. 

Distribution
to participants terminating employment on or after April 1, 1995, who as of the date of termination, have attained age 55 with 10 or more years of service, shall be paid in the
form of a single lump sum payment unless, in any calendar year prior to the participant's termination of employment, but not less than 90 days prior to such termination, such participant
irrevocably elects, in writing, to receive such distribution at a later date or in annual installments over a period of 2 to 15 years consisting of an amount approximately equal to his Account
balance divided by the number of installments then remaining (including the installment in question) each year payable commencing as of the end of the month designated for commencement of such payment
and as of the month designated for commencement of such payment and as of the end of the same month in each year thereafter until payment of all such installments is made (the "Installment Method"). 

Distribution
to participants whose employment terminated prior to April, 1995, shall be paid in the same form and at the same time as the participant's benefit under the Savings and Investment Program
is payable (utilizing, if applicable, the same actuarial assumptions used to compute the participant's Savings and Investment Program benefit payments or such other assumptions as may be determined by
the Committee from time to time); provided, however, that such form of distribution is either a lump sum payment or the Installment Method, which election must be made in the calendar year prior to,
but not less than 90 days prior to, the date such lump sum is to be paid or such installments shall commence. 

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Notwithstanding
the foregoing, where the participant's Account Balance on the date of his termination of employment (if termination occurs on or after April 1, 1995), or on the date of
distribution as elected by the participant (if termination occurs prior to April 1, 1995) does not exceed $15,000, the participant or his beneficiary shall receive payment of such Account
Balance in the form of a single lump sum payment.1 

	V.
	Designation of Beneficiaries in the Event of Death

A
participant may designate a beneficiary or beneficiaries to receive all or part of the amount in his account in case of his death if such beneficiary or beneficiaries shall be living at the time of
his death; provided, however, that if the participant has elected to have his benefit under the Savings and Investment Program paid in the form of a "qualified joint and survivor annuity", then the
participant's beneficiary shall be his spouse. A participant may, subject to the preceding sentence, change or revoke a designation of beneficiary and such designation, change or revocation shall be
on a form to be provided for the purpose and shall be signed by the participant and delivered to his employing
corporation prior to his death. In case of the death of the participant, the amount in his account with respect to which a designation of beneficiary has been made (to the extent it is valid and
enforceable under applicable law) shall be distributed in accordance with this Plan to the surviving designated beneficiary or beneficiaries. The amount in the participant's account distributable upon
death and not subject to such a designation, or if no beneficiary shall be living at the time of the participant's death, shall be distributed following his death to the person or persons in the first
of the following classes of successive preference: 

	1.
	The
participant's surviving spouse.

	2.
	To
such one or more of the participant's surviving children as the Committee shall determine and in such proportions as the Committee determines.

	3.
	The
participant's surviving parents, equally.

	4.
	To
such one or more of the participant's surviving brothers and in such proportions as the Committee determines.

	5.
	The
participant's executors or administrators. 

Payment
to one or more of such persons shall completely discharge the Plan with respect to the amount so paid. Notwithstanding the above, if the participant has designated a beneficiary under the
Savings and Investment Program shall be 

	1
	Subsection
F is effective 4/1/94. 

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deemed
a designation for purposes of this Plan unless a separate beneficiary designation is made under this Plan in accordance with the foregoing. 

	VI.
	Distribution for Financial Hardship

If
a participant shall establish to the satisfaction of the Committee in accordance with principles and procedures established by the Committee which are applicable to all persons similarly situated
that a withdrawal to be made by him pursuant to this Article VI is to be made by reason of an extreme financial hardship, the participating employer shall distribute to the participant the
amount necessary to meet such financial hardship but not more than the value credited to his book accounts under Article IV hereof. 

	VII.
	Miscellaneous

This
Plan may be terminated at any time by the Board of Directors of the Company, in which event the rights of participants to their book accounts established under this plan shall become
non-forfeitable. The Company or any participating employer may terminate this Plan with respect to its employees participating in the Saving and Investment Program, in which event the
rights of participants to their book account established under this Plan and payable by such terminating corporation shall become non-forfeitable. 

If
the Plan is terminated, no distribution shall be made to a participant or beneficiary, which is attributable to the termination during the 90-day period following such termination.
Thereafter, providing the Company is not subject to an insolvency or bankruptcy proceeding, all amounts then accrued on behalf of a participant shall be distributed to him (or his beneficiary), within
60 days after the expiration of such 90-day period. If the Company is subject to an insolvency or bankruptcy proceeding, distribution of such amounts shall be suspended to the pendency of such
proceeding. 

No
right to payment or any other interest under this Plan may be alienated, sold, transferred, pledged, assigned, or made subject to attachment, execution, or levy of any kind. 

Nothing
in this Plan shall be construed as giving any employee the right to be retained in the employ of any participating employer. Each participating employer in the Plan expressly reserves the
right to dismiss any employee at any time without regard to the effect, which such dismissal might have upon him under the Plan. 

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This
Plan may be amended at any time by the Board of Directors of the Company, except that no such amendment shall deprive any participant of the amount then credited to his book account established
under this Plan. 

Benefits
payable under this Plan shall not be funded and shall be made out of the general funds of the participating employers or any grantor trust established by the Company for this purpose. The
participating employers shall not be required to segregate any contributions made by participants under this Plan. They shall become a part of the general funds of the participating employers. To the
extent that a grantor trust if established by the Company, the Committee may from time to time reserve unto itself the right to vote any shares of equity securities or mutual funds held in any
investment fund thereunder or may permit such other Committee, or Investment Manager or Managers as it may designate to exercise such responsibility. 

This
Plan shall be construed, administered and enforced according to the substantive internal laws (and not the conflict of laws provisions) of the State of New York. 

VIII. Effective Date

This
amended and restated Plan shall be effective as of January 1, 1996 upon its approval by a proper officer of the Company as authorized by the Bristol-Myers Squibb Company Savings Plan
Committee at a meeting held on the 29th of November, 1994. 

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QuickLinks

BENEFIT EQUALIZATION PLAN OF BRISTOL-MYERS SQUIBB COMPANY AND ITS SUBSIDIARY OR AFFILIATED CORPORATIONS PARTICIPATING IN THE BRISTOL-MYERS SQUIBB COMPANY SAVINGS AND INVESTMENT PROGRAM (as amended and restated
effective as of January 1, 1996)<Page>

                                                                    EXHIBIT 4.3

                          CERTIFICATE OF DESIGNATIONS

                                       of

                 SERIES A CUMULATIVE CONVERTIBLE PREFERRED STOCK

                                       of

                               USA NETWORKS, INC.

                         (Pursuant to Section 151 of the
                        Delaware General Corporation Law)

                                 --------------

          USA Networks, Inc., a corporation organized and existing under the
General Corporation Law of the State of Delaware (hereinafter called the
"Corporation"), hereby certifies that the following resolution was adopted by
the unanimous consent of the Board of Directors of the Corporation as required
by Section 151 of the General Corporation Law on November 30, 2001.

          RESOLVED, that pursuant to the authority granted to and vested in the
Board of Directors of this Corporation in accordance with the provisions of the
Amended Certificate of Incorporation of the Corporation, a series of Convertible
Preferred Stock, par value $.01 per share, of the Corporation, be and hereby is
created, and that the number of shares thereof and the voting powers,
designations, preferences, limitations, restrictions, relative rights and
distinguishing designation of the shares of such series are as follows:

          SECTION 1. DESIGNATION AND AMOUNT. The designation of such series of
Preferred Stock authorized by this resolution shall be the Series A Cumulative
Convertible Preferred Stock (the "CONVERTIBLE PREFERRED STOCK"). The number of
shares of Convertible Preferred Stock shall be 13,125,000. The face value of the
Convertible Preferred Stock shall be $50.00 (the "FACE VALUE").

          SECTION 2. RANK AND TERM. All shares of Convertible Preferred Stock
shall rank prior, both as to payment of dividends and as to distributions of
assets upon liquidation, dissolution or winding up of the Corporation, whether
voluntary or involuntary, to all of the now or hereafter issued classes of
common stock, $0.01 par value per share, of the Corporation (the "COMMON
STOCK"). No other preferred stock of the Corporation shall rank senior to the
Convertible Preferred Stock with respect to payment upon liquidation or payment
of dividends without the consent of the holders of record of the Convertible
Preferred Stock (the "HOLDERS") representing a majority of the Convertible
Preferred Stock then outstanding. At the close of business on February 4, 2022
(the "EXPIRATION DATE"), without any further action on the part of the
Corporation or any Holder, but subject to payment of all accrued and unpaid
dividends on the Convertible Preferred Stock, all then outstanding shares of
Convertible Preferred Stock shall automatically be

                                       1
<Page>

converted to common stock in conformance with the provisions of Section 6 and no
shares of Convertible Preferred Stock shall thereafter be issued or outstanding.

          SECTION 3. DIVIDENDS. The Holders shall be entitled to receive,
whether or not dividends are declared by the Board out of funds at the time
legally available therefor, annual dividends in the amount of (a) 1.99% of the
Face Value per annum per share of Convertible Preferred Stock, plus (b) the
excess, if any, of the value of any dividends paid with respect to the number of
shares of Common Stock into which each outstanding share of the Convertible
Preferred Stock is then convertible over the amount described in clause (a), and
no more. Dividends on the Convertible Preferred Stock shall be fully cumulative,
shall accrue without interest from the date of first issuance, and shall be
payable quarterly in arrears on February 15, May 15, August 15 and November 15
(each, a "DIVIDEND DATE") of each year (except that if any such date is a
Saturday, Sunday or Legal Holiday, then such dividend shall be payable on the
next succeeding day that is not a Saturday, Sunday or Legal Holiday) to holders
of record as they appear on the stock transfer books of the Corporation on the
close of business on the fifth Business Day prior to such Dividend Date. All
dividends on the Convertible Preferred Stock are payable, at the Corporation's
option, in cash, shares of Common Stock or any combination thereof, with the
Common Stock valued at the Market Price (as defined below) as of the applicable
Dividend Date. For purposes hereof, the term "LEGAL HOLIDAY" shall mean any day
on which banking institutions are authorized to close in New York, New York.
Dividends on account of arrears for any past dividend period may be declared and
paid at any time, without reference to any regular dividend payment date. The
amount of dividends payable per share of Convertible Preferred Stock with
respect to the amounts determined pursuant to clause (a) of this paragraph for
each quarterly dividend period shall be computed by dividing the annual amount
determined pursuant to such clause (a) by four. The amount of dividends payable
for the initial dividend period and any period shorter than a full quarterly
dividend period shall be computed on the basis of the number of days actually
elapsed of a 360-day year, provided that in no event shall the dividend amount
for any period shorter than a full quarterly dividend period be greater than the
full quarterly dividend amount.

          If the Corporation elects to pay all or any portion of a dividend in
shares of Common Stock, the number of shares of Common Stock to be delivered by
the Corporation for each share of Convertible Preferred Stock held by a Holder
shall equal (x) the cash value of the dividend (or portion of a dividend) to be
paid with Common Stock divided by (y) the Market Price. The "MARKET PRICE" shall
be equal to the average of the daily Closing Prices (as defined below) of the
Common Stock for the 10 consecutive Trading Days (as defined below) ending on
the second Trading Day immediately preceding the applicable Dividend Date (or
other date with respect to which the Market Price is to be determined). The
"CLOSING PRICE" for each Trading Day shall be the last reported sales price
regular way, during regular trading hours, or, in case no such reported sales
takes place on such day, the average of the closing bid and asked prices regular
way, during regular trading hours, for such day, in each case on The Nasdaq
Stock Market or, if not listed or quoted on such market, on the principal
national securities exchange on which the shares of Common Stock are listed or
admitted to trading or, if not listed or admitted to trading on a national
securities exchange, the last sale price regular way for

                                       2
<Page>

the Common Stock as published by the National Association of Securities Dealers
Automated Quotation System ("NASDAQ"), or if such last sale price is not so
published by NASDAQ or if no such sale takes place on such day, the mean between
the closing bid and asked prices for the Common Stock as published by NASDAQ. If
the shares of Common Stock are not listed or admitted to trading on a national
securities exchange or quoted by NASDAQ, the Market Price shall be determined in
good faith by the Board of Directors of the Corporation or, if such
determination cannot be made, by a nationally recognized independent investment
banking firm selected in good faith by the Board of Directors of the
Corporation. "TRADING DAY" shall mean a day on which the securities exchange
utilized for the purpose of calculating the Market Price shall be open for
business or, if the shares of Common Stock shall not be listed on such exchange
for such period, a day with respect to which quotations of the character
referred to in the next preceding sentence shall be reported. In lieu of any
fractional share of Common Stock which would otherwise be issued in payment for
a dividend on Convertible Preferred Stock, the Corporation shall pay a cash
adjustment in respect of such fractional interest in an amount in cash (computed
to the nearest cent) equal to the Market Price multiplied by the fractional
interest that otherwise would have been deliverable as a dividend on such
Convertible Preferred Stock.

          On each Dividend Date all dividends which shall have accrued on each
share of Convertible Preferred Stock outstanding on such Dividend Date shall
accumulate and be deemed to become "due" whether or not there shall be funds
legally available for the payment thereof. Any dividend which shall not be paid
on the Dividend Date on which it shall become due shall be deemed to be "past
due" until such dividend shall be paid or until the share of Convertible
Preferred Stock with respect to which such dividend became due shall no longer
be outstanding, whichever is the earlier to occur. No interest, sum of money in
lieu of interest, or other property or securities shall be payable in respect of
any dividend payment or payments which are past due. Dividends paid on shares of
Convertible Preferred Stock in an amount less than the total amount of such
dividends at the time accumulated and payable on such shares shall be allocated
PRO RATA on a share-by-share basis among all such shares at the time
outstanding.

          No dividends shall be paid or declared and set apart for payment on
the Corporation's Common Stock or on any class or series of the Corporation's
capital stock ranking, as to dividends, on a parity with the Convertible
Preferred Stock (the "PARITY DIVIDEND STOCK") for any period unless full
cumulative dividends have been, or contemporaneously are, paid or declared and
set apart for such payment on the Convertible Preferred Stock for all dividend
payment periods terminating on or prior to the date of payment of such full
cumulative dividends. No dividends shall be paid or declared and set apart for
payment on the Convertible Preferred Stock for any period unless cumulative
dividends have been, or contemporaneously are, paid or declared and set apart
for payment on the Parity Dividend Stock for all dividend periods terminating on
or prior to the date of payment of such full cumulative dividends. When
dividends are not paid in full upon the Convertible Preferred Stock and the
Parity Dividend Stock, all dividends paid or declared and set aside for payment
upon shares of Convertible Preferred Stock and the Parity Dividend Stock shall
be paid or declared and set aside for payment PRO RATA so that the amount of
dividends paid or declared and set aside for payment per share on the

                                       3
<Page>

Convertible Preferred Stock and the Parity Dividend Stock shall in all cases
bear to each other the same ratio that accrued and unpaid dividends per share on
the shares of Convertible Preferred Stock and the Parity Dividend Stock bear to
each other.

          SECTION 4. LIQUIDATION PREFERENCE. In the event of any liquidation,
dissolution or winding up of the Corporation, whether voluntary or involuntary,
the Holders shall be entitled to receive out of the assets of the Corporation,
whether such assets are stated capital or surplus of any nature, an amount equal
to the dividends accrued and unpaid thereon to the date of final distribution to
such Holders, whether or not declared, without interest, plus a sum per share of
Convertible Preferred Stock equal to the greater of (a) $50.00 and (b) the
liquidating distribution that would be paid with respect to the number of shares
of Common Stock into which a share of Convertible Preferred Stock is then
convertible, and no more. Such final distribution on the shares of the
Convertible Preferred Stock shall be made before any payment is made or assets
are distributed to the holders of Common Stock or any other class or series of
the Corporation's capital stock ranking junior as to liquidation rights to the
Convertible Preferred Stock (the "JUNIOR LIQUIDATION STOCK"). In the event the
assets of the Corporation available for distribution to stockholders upon any
liquidation, dissolution or winding up of the Corporation, whether voluntary or
involuntary, shall be insufficient to pay in full the amounts payable with
respect to the Convertible Preferred Stock and any other class or series of the
Corporation's capital stock which may hereafter be created having parity as to
liquidation rights with the Convertible Preferred Stock (the "PARITY LIQUIDATION
STOCK"), the Holders and the holders of the Parity Liquidation Stock shall share
ratably in any distribution of assets of the Corporation in proportion to the
full respective preferential amounts to which they are entitled (but only to the
extent of such preferential amounts). After payment in full of the liquidation
preferences of the shares of Convertible Preferred Stock, the Holders shall not
be entitled to any further participation in any distribution of assets by the
Corporation by virtue of their ownership of the Convertible Preferred Stock.
Except as set forth in Section 6(i), neither a consolidation, merger or other
business combination of the Corporation with or into another corporation or
other entity nor a sale or transfer of all or part of the Corporation's assets
for cash, securities or other property or any combination thereof shall be
considered a liquidation, dissolution or winding up of the Corporation for
purposes of this Section 4 (unless in connection therewith the liquidation of
the Corporation is specifically approved).

          A Holder shall not be entitled to receive any payment owed for such
shares under this Section 4 until such Holder shall cause to be delivered to the
Corporation (i) the certificate(s) representing such shares of Convertible
Preferred Stock (or, in the event such certificate(s) have been lost or
destroyed, an affidavit of the Holder of loss or destruction reasonably
satisfactory to the Corporation as well as other support as reasonably requested
by the Corporation) and (ii) transfer instrument(s) reasonably satisfactory to
the Corporation and sufficient to transfer such shares of Convertible Preferred
Stock to the Corporation free of any adverse interest. No interest shall accrue
on any payment upon liquidation after the due date thereof.

          SECTION 5. REDEMPTION. (a) REDEMPTION AT THE OPTION OF THE
CORPORATION. Commencing on the tenth anniversary of the Effective Time (for the
purposes

                                       4
<Page>

hereof, the "EFFECTIVE TIME" shall be February 4, 2002), the Corporation, at its
option, may from time to time redeem all or a portion of (but if a portion,
shares representing at least 25% of the originally issued aggregate Face Value,
unless there shall remain outstanding less than 25% of such amount, in which
case all outstanding shares may be redeemed) of the outstanding Convertible
Preferred Stock at a redemption price equal to the Face Value plus all dividends
on the Convertible Preferred Stock being redeemed that are accrued and unpaid
thereon, whether or not declared or due, to the date fixed for redemption (the
"REDEMPTION DATE"), such sum being hereinafter referred to as the "REDEMPTION
PRICE". The Redemption Price may be paid in cash, shares of Common Stock or a
combination thereof, at the option of the Corporation.

          If the Corporation elects to pay the Redemption Price in Common Stock,
the number of shares of Common Stock to be paid per share of Convertible
Preferred Stock being redeemed shall equal (x) the then-current Redemption Price
of the Convertible Preferred Stock (or portion thereof to be paid in shares of
Common Stock), divided by (y) the Market Price as of the date of the notice for
redemption described below.

          In case of the redemption pursuant to this Section 5(a) of less than
all of the then outstanding Convertible Preferred Stock, the shares of
Convertible Preferred Stock to be redeemed shall be redeemed PRO RATA or by lot
or in such other manner as the Board of Directors may determine.

          Not more than 60 nor less than 20 days prior to the Redemption Date,
notice by first class mail, postage prepaid, shall be given to each Holder of
Convertible Preferred Stock to be redeemed, at such Holder's address as it shall
appear upon the stock transfer books of the Corporation. Each such notice of
redemption shall specify the Redemption Date, the Redemption Price, the place or
places of payment, that payment will be made upon presentation and surrender of
the certificate(s) evidencing the shares of Convertible Preferred Stock to be
redeemed, that on and after the Redemption Date, dividends will cease to accrue
on such shares of Convertible Preferred Stock to be redeemed, the then effective
conversion price pursuant to Section 6 and that the right of holders to convert
such shares of Convertible Preferred Stock to be redeemed shall terminate at the
close of business on the Redemption Date (unless the Corporation defaults in the
payment of the Redemption Price).

          Any notice that is mailed as provided in Section 13 shall be
conclusively presumed to have been duly given, whether or not the Holder
receives such notice; and failure to give such notice by mail, or any defect in
such notice, to the Holders of any shares designated for redemption shall not
affect the validity of the proceedings for the redemption of any other shares of
Convertible Preferred Stock. On or after the Redemption Date as stated in such
notice, each Holder of the shares called for redemption shall surrender the
certificate evidencing such shares to the Corporation at the place designated in
such notice and shall thereupon be entitled to receive payment of the Redemption
Price as herein provided. If less than all the shares represented by any such
surrendered certificate are redeemed, a new certificate shall be issued
representing the unredeemed shares. If, on the Redemption Date, shares of Common
Stock and/or funds, as the case may be, necessary for the redemption shall be
available therefor and shall have been irrecoverably deposited or set aside,
then, notwithstanding that the certificates evidencing any shares so

                                       5
<Page>

called for redemption shall not have been surrendered the dividends with respect
to the shares so called shall cease to accrue after the Redemption Date, the
shares shall no longer be deemed outstanding, the Holders thereof shall cease to
be Holders, and all rights whatsoever with respect to the shares so called for
redemption (except the right of the Holders to receive payment of the Redemption
Price as herein provided without interest upon surrender of their certificates
therefor) shall terminate. At the close of business on the Redemption Date, each
Holder of Convertible Preferred Stock so redeemed (unless the Corporation
defaults on its obligations to deliver shares of Common Stock or cash) shall be,
without any further action, to the extent the Corporation elected to pay the
Redemption Price in shares of Common Stock, deemed a holder of the number of
shares, if any, of Common Stock for which such Convertible Preferred Stock is
redeemable, and, to the extent the Corporation elected to pay the Redemption
Price in cash, entitled to receive payment of the Redemption Price in cash,
without interest.

          The shares of Convertible Preferred Stock shall not be subject to the
operation of any purchase, retirement, mandatory redemption (except as specified
in this Section) or sinking fund.

          The Holder of any shares of Convertible Preferred Stock redeemed upon
any exercise of the Corporation's redemption right shall not be entitled to
receive payment of the Redemption Price for such shares until such Holder shall
cause to be delivered to the place specified in the notice given with respect to
such redemption (i) the certificate(s) representing such shares of Convertible
Preferred Stock redeemed (or, in the event such certificate(s) have been lost or
destroyed, an affidavit of the Holder of loss or destruction reasonably
satisfactory to the Corporation as well as other support as reasonably requested
by the Corporation) and (ii) transfer instrument(s) reasonably satisfactory to
the Corporation and sufficient to transfer such shares of Convertible Preferred
Stock to the Corporation free of any adverse interest. No interest shall accrue
on the Redemption Price of any share of Convertible Preferred Stock after its
Redemption Date provided that the shares of Common Stock and/or funds sufficient
for the redemption shall have been made available therefor and shall have been
irrecoverably deposited or set aside.

          In the event that, prior to a Redemption Date, any shares of
Convertible Preferred Stock shall be converted into Common Stock pursuant to
Section 6, then (i) the Corporation shall not have the right to redeem such
shares and (ii) shares of Common Stock and any funds which shall have been
deposited for the payment of the Redemption Price for such shares of Convertible
Preferred Stock shall be returned to the Corporation immediately after such
conversion (subject to declared dividends payable to Holders on the record date
for such dividends being so payable, to the extent set forth in Section 6
hereof, regardless of whether such shares are converted subsequent to such
record date and prior to the related dividend payment date).

          (b)  REDEMPTION AT THE OPTION OF THE HOLDER. During the 20 Trading Day
period preceding each of the fifth, seventh, tenth and fifteenth anniversaries
of the Effective Time (each such period, a "HOLDER'S REDEMPTION PERIOD"), a
Holder may elect to cause the Corporation to redeem all or any of the shares of
Convertible Preferred Stock held by such Holder. The Corporation shall redeem
each such share for the Face Value,

                                       6
<Page>

plus all accrued and unpaid dividends whether or not declared through the
applicable anniversary (the "HOLDER'S REDEMPTION CONSIDERATION"), for cash,
shares of Common Stock or a combination thereof, at the Corporation's option.

          For any shares of Convertible Preferred Stock that the Corporation
elects to redeem for Common Stock, the amount of Common Stock to be paid per
share of Convertible Preferred Stock so redeemed shall equal (x) the Holder's
Redemption Consideration (or portion thereof to be paid in shares of Common
Stock), divided by (y) the Market Price as of the applicable anniversary date.

          A Holder electing to redeem one or more shares of Convertible
Preferred Stock shall provide notice in accordance with Section 13 to the
transfer agent designated by the Corporation for such purpose or, if there be
none, to the principal business offices of the Corporation (the "HOLDER'S
NOTICE"), postmarked (if not hand delivered) or received by the transfer agent
or principal business offices of the Corporation, as applicable (if hand
delivered), on a date within the applicable Holder's Redemption Period. Any
Holder's Notice that is mailed as herein provided, and includes the
documentation described in the next succeeding paragraph, shall be conclusively
presumed to have been duly given, and the shares of Convertible Preferred Stock
shall be deemed to be subject to redemption by the Corporation on the applicable
anniversary upon receipt of such notice by the Corporation.

          A Holder shall include with the Holder's Notice (i) the certificate(s)
representing such shares of Convertible Preferred Stock redeemed (or, in the
event such certificate(s) have been lost or destroyed, an affidavit of the
Holder of loss or destruction reasonably satisfactory to the Corporation as well
as other support as reasonably requested by the Corporation) and (ii) transfer
instrument(s) reasonably satisfactory to the Corporation and sufficient to
transfer such shares of Convertible Preferred Stock to the Corporation free of
any adverse interest. No interest shall accrue on the Holder's Redemption
Consideration for any share of Convertible Preferred Stock after its redemption
date.

          If less than all the shares represented by any such surrendered
certificate are redeemed, a new certificate shall be issued representing the
unredeemed shares. If, on or after the date the Corporation receives the
Holder's Notice, shares of Common Stock and/or funds necessary for the
redemption shall have been made available therefor and shall have been
irrecoverably deposited or set aside, then the dividends with respect to the
shares to be so redeemed shall cease to accrue after the date fixed for
redemption, the shares shall no longer be deemed outstanding, the Holders
thereof shall cease to be Holders of Convertible Preferred Stock, and all rights
whatsoever with respect to the shares so requested to be redeemed (except the
right of the Holders to receive payment of the redemption price as herein
provided without interest upon surrender of their certificates therefor) shall
terminate.

          SECTION 6. CONVERSION. (a) RIGHT OF CONVERSION/AUTOMATIC CONVERSION.
Subject to and upon compliance with the provisions of this Section 6, each share
of

                                       7
<Page>

Convertible Preferred Stock shall, at the option of the Holder, be convertible
at any time (unless such share is called for redemption, then to and including
but not after the close of business on the date fixed for such redemption,
unless the Corporation shall default in payment due upon redemption thereof),
into that number of fully paid and non-assessable shares of Common Stock
(calculated as to each conversion to the nearest 1/100th of a share) equal to
the quotient obtained by dividing $50.00 by the Conversion Price (as defined in
Section 6(d)) in effect at such time and by surrender of such share so to be
converted in the manner provided in Section 6(b).

          Each share of Convertible Preferred Stock shall automatically be
converted into that number of fully paid and non-assessable shares of Common
Stock (calculated as to each conversion to the nearest 1/100th of a share) equal
to the quotient obtained by dividing $50.00 by the Conversion Price in effect as
of the Expiration Date.

          (b)  MANNER OF EXERCISE OF CONVERSION. In order to exercise the
conversion privilege (or, in the case of an automatic conversion, receive the
Common Stock into which the shares of Convertible Preferred Stock have been
converted), the Holder of one or more shares of Convertible Preferred Stock to
be converted (or that have been converted, in the case of an automatic
conversion) shall surrender the certificate(s) representing such shares (or, in
the event such certificate(s) have been lost or destroyed, an affidavit of the
Holder of loss or destruction reasonably satisfactory to the Corporation as well
as other support as reasonably requested by the Corporation) to the transfer
agent designated by the Corporation for such purpose or, if there be none, to
the principal business offices of the Corporation, accompanied by the funds, if
any, required by the last paragraph of this Section 6(b) and shall give written
notice of conversion in compliance with Section 13 in the form provided on such
shares of Convertible Preferred Stock (or such other notice as is acceptable to
the Corporation) to the Corporation at such office or agency that the Holder
elects to convert the shares of Convertible Preferred Stock specified in said
notice. Such notice shall also state the name or names, together with address or
addresses, in which the certificate or certificates for shares of Common Stock
which shall be issuable in such conversion shall be issued. Each share of
Convertible Preferred Stock surrendered for conversion shall, unless the shares
issuable on conversion are to be issued in the same name as the name in which
such share is registered, be accompanied by instruments of transfer, in form
satisfactory to the Corporation, duly executed by the Holder or his duly
authorized attorney and an amount sufficient to pay any transfer or similar tax.
As promptly as practicable after the surrender of such shares of Convertible
Preferred Stock and the receipt of such notice, instruments of transfer and
funds, if any, as aforesaid, the Corporation shall issue and shall deliver at
such office or agency to such Holder, or on his written order, a certificate or
certificates for the number of full shares of Common Stock issuable upon the
conversion of such share of Convertible Preferred Stock in accordance with the
provisions of this Section 6 and a check or cash in respect of any fractional
interest in a share of Common Stock arising upon such conversion, as provided in
Section 6(c).

          Each conversion, other than an automatic conversion, shall be deemed
to have been effected immediately prior to the close of business on the date on
which such shares of Convertible Preferred Stock shall have been surrendered and
such notice (and

                                       8
<Page>

any applicable instruments of transfer and any required taxes) is deemed
received by the Corporation as aforesaid (such date, the "CONVERSION DATE"). In
the case of an automatic conversion, the Expiration Date shall be the Conversion
Date. The person or persons in whose name or names any certificate or
certificates for shares of Common Stock shall be issuable upon a conversion,
including an automatic conversion, shall be deemed to have become the holder or
holders of record of the shares represented thereby at the close of business on
the Conversion Date, and such conversion shall be at the Conversion Price in
effect at such time on such date, unless the stock transfer books of the
Corporation shall be closed on that date, in which event such person or persons
shall be deemed to have become such holder or holders of record at the close of
business on the next succeeding day on which such stock transfer books are open,
but such conversion shall be at the Conversion Price in effect on the date upon
which such shares of Convertible Preferred Stock shall have been surrendered and
such notice received by the Corporation.

          (c)  CASH PAYMENTS IN LIEU OF FRACTIONAL SHARES. No fractional shares
or scrip representing fractions of shares of Common Stock shall be issued upon
conversion of Convertible Preferred Stock. If more than one share of Convertible
Preferred Stock shall be surrendered for conversion at one time by the same
Holder, the number of full shares of Common Stock issuable upon conversion
thereof shall be computed on the basis of the aggregate of $50.00 for each such
share so surrendered. In lieu of any fractional interest in a share of Common
Stock which would otherwise be deliverable upon the conversion of any share of
Convertible Preferred Stock, the Corporation shall pay to the Holder of such
shares an amount in cash (computed to the nearest cent) equal to the Closing
Price on the Conversion Date (or the next Trading Day if such date is not a
Trading Day) multiplied by the fractional interest that otherwise would have
been deliverable upon conversion of such share.

          (d)  CONVERSION PRICE. The "CONVERSION PRICE" shall mean and be
$33.75, subject to adjustment by the Corporation on the applicable Conversion
Date as set forth in Section 6(e) below, and subject to adjustment by the
Corporation from time to time as set forth in Section 6(f), below.

          (e)  MARKET PRICE ADJUSTMENT TO CONVERSION PRICE. Solely with respect
to shares of Convertible Preferred Stock being converted on an applicable
Conversion Date:

               (i)  If and only if the Market Price on the applicable Conversion
     Date exceeds $35.10 (as such amount may be adjusted pursuant to Section
     6(f)(v), the "TRIGGER PRICE"), the Conversion Price with respect to the
     shares of Convertible Preferred Stock being converted on such Conversion
     Date shall be adjusted as set forth in Section 6(e)(ii) (such adjustment,
     the "MARKET PRICE ADJUSTMENT").

               (ii) If the Market Price Adjustment is applicable pursuant to
     Section 6(e)(i) above, the Conversion Price on the applicable Conversion
     Date shall be calculated as follows:

                                       9
<Page>

     Revised                      ($50 X Market Price)                      D
      Conversion Price  ----------------------------------------------- X ------
                        [(Market Price X A) + {B X (Market Price - C)}]   33.75

     where:

     A = 1.4815
     B = 0.4792
     C = Trigger Price
     D = Conversion Price in effect after giving effect to any adjustments
         described in Section 6(f) and without giving effect to this
         Section 6(e).

     Any adjustment to the Conversion Price pursuant to this Section 6(e)(ii)
     shall not require any adjustment to the Trigger Price pursuant to Section
     6(f) below.

          (f)  OTHER ADJUSTMENTS.

               (i)   In case the Corporation shall (A) pay a dividend or make a
     distribution on its Common Stock in shares of Common Stock, (B) subdivide
     its outstanding shares of Common Stock into a greater number of shares, (C)
     combine its outstanding shares of Common Stock into a smaller number of
     shares, or (D) issue by reclassification, recapitalization or
     reorganization of its Common Stock (other than a reorganization in which
     the provisions of Section 6(i) apply) any shares of capital stock of the
     Corporation, then in each such case the Conversion Price in effect
     immediately prior to such action shall be equitably adjusted so that the
     Holder of any share of Convertible Preferred Stock thereafter surrendered
     for conversion shall be entitled to receive the number of shares of Common
     Stock or other capital stock of the Corporation which such Holder would
     have owned or been entitled to receive immediately following such action
     had such share been converted immediately prior to the occurrence of such
     event. An adjustment made pursuant to this subsection (f)(i) shall become
     effective immediately after the record date, in the case of a dividend or
     distribution, or immediately after the effective date, in the case of a
     subdivision, combination, reclassification, recapitalization or
     reorganization. If, as a result of an adjustment made pursuant to this
     subsection (f)(i), the Holder of any share of Convertible Preferred Stock
     thereafter surrendered for conversion shall become entitled to receive
     shares of two or more classes of capital stock or shares of Common Stock
     and other capital stock of the Corporation, the Board of Directors in the
     exercise of its good faith judgment (whose determination shall be described
     in a statement filed by the Corporation with the stock transfer or
     conversion agent, as appropriate) shall determine the allocation of the
     adjusted Conversion Price between or among shares of such classes of
     capital stock or shares of Common Stock and other capital stock.

               (ii)  In case the Corporation shall issue options, rights or
     warrants to holders of its outstanding shares of Common Stock entitling
     them (for a period expiring within 45 days after the date mentioned below)
     to subscribe for or purchase shares of Common Stock or other securities
     convertible or exchangeable for shares of Common Stock at a price per share
     less than the Current Market Price (as determined pursuant to subsection
     (iv) of this Section 6(f)) (other than

                                       10
<Page>

     pursuant to any stock option, restricted stock or other incentive or
     benefit plan or stock ownership or purchase plan for the benefit of
     employees, directors or officers or any dividend reinvestment plan of the
     Corporation in effect at the time hereof or any other similar plan adopted
     or implemented hereafter, it being agreed that none of the adjustments set
     forth in this Section 6(f) shall apply to the issuance of stock, options,
     rights, warrants or other property pursuant to any stock option, restricted
     stock or other incentive or benefit plan or stock ownership or purchase
     plan for the benefit of employees, directors or officers or any dividend
     reinvestment plan for the Corporation in effect at the time hereof or any
     other similar plan adopted or implemented hereafter), then the Conversion
     Price in effect immediately prior thereto shall be adjusted so that it
     shall equal the price determined by multiplying the Conversion Price in
     effect immediately prior to the date of issuance of such rights or warrants
     by a fraction of which the numerator shall be the number of shares of
     Common Stock outstanding on the date of issuance of such rights or warrants
     (immediately prior to such issuance) plus the number of shares which the
     aggregate offering price of the total number of shares so offered would
     purchase at such Current Market Price, and of which the denominator shall
     be the number of shares of Common Stock outstanding on the date of issuance
     of such rights or warrants (immediately prior to such issuance) plus the
     number of additional shares of Common Stock offered for subscription or
     purchase. Such adjustment shall be made successively whenever any rights or
     warrants are issued, and shall become effective immediately after the
     record date for the determination of stockholders entitled to receive such
     rights or warrants; PROVIDED, HOWEVER, in the event that all the shares of
     Common Stock offered for subscription or purchase are not delivered upon
     the exercise of such rights or warrants, upon the expiration of such rights
     or warrants the Conversion Price shall be readjusted to the Conversion
     Price which would have been in effect had the numerator and the denominator
     of the foregoing fraction and the resulting adjustment been made based upon
     the number of shares of Common Stock actually delivered upon the exercise
     of such rights or warrants rather than upon the number of shares of Common
     Stock offered for subscription or purchase. In determining whether any
     security covered by this Section 6(f)(ii) entitles the holder thereof to
     subscribe for or purchase shares of Common Stock at less than such Current
     Market Price, and in determining the aggregate offering price of such
     shares of Common Stock, there shall be taken into account any consideration
     received by the Corporation for such rights, warrants or convertible or
     exchangeable securities, plus the aggregate amount of additional
     consideration (as set forth in the instruments relating thereto) to be
     received by the Corporation upon the exercise, conversion or exchange of
     such securities, the value of such consideration, if other than cash, to be
     determined by the Board of Directors in the exercise of its good faith
     judgment (whose determination shall be described in a statement filed by
     the Corporation with the stock transfer or conversion agent, as
     appropriate).

               (iii) In case the Corporation shall, by dividend or otherwise,
     distribute to holders of its outstanding Common Stock that is not also
     distributed to holders of its Convertible Preferred Stock on an
     as-converted basis as of the record date for the determination of
     stockholders entitled to receive such distribution,

                                       11
<Page>

     evidences of its indebtedness or assets (including securities and cash, but
     excluding any regular periodic cash dividend of the Corporation and
     dividends or distributions payable in stock for which adjustment is made
     pursuant to subsection (i) of this Section 6(f)) or options, rights or
     warrants to subscribe for or purchase securities of the Corporation
     (excluding those referred to in subsection (ii) of this Section 6(f)), then
     in each such case the Conversion Price shall be adjusted so that the same
     shall equal the price determined by multiplying the Conversion Price in
     effect immediately prior to the record date of such distribution by a
     fraction of which the numerator shall be the Current Market Price as of the
     Time of Determination less the fair market value on such record date (as
     determined by the Board of Directors in the exercise of its good faith
     judgment, whose determination shall be described in a statement filed by
     the Corporation with the stock transfer or conversion agent, as
     appropriate) of the portion of the capital stock or assets or the evidences
     of indebtedness or assets so distributed to the holder of one share of
     Common Stock or of such subscription rights or warrants applicable to one
     share of Common Stock, and of which the denominator shall be such Current
     Market Price. Such adjustment shall become effective immediately after the
     record date for the determination of stockholders entitled to receive such
     distribution.

               (iv)  For the purpose of any computation under subsections (ii)
     and (iii) of this Section 6(f), the "CURRENT MARKET PRICE" per share of
     Common Stock on any date shall be deemed to be the average of the daily
     Closing Prices for the shorter of (A) 10 consecutive Trading Days ending on
     the day immediately preceding the applicable Time of Determination (as
     defined below) or (B) the period commencing on the date next succeeding the
     first public announcement of the issuance of such rights or warrants or
     such distribution through such last day prior to the applicable Time of
     Determination. For purposes of the foregoing, the term "TIME OF
     DETERMINATION" shall mean the time and date of the record date for
     determining stockholders entitled to receive the rights, warrants or
     distributions referred to in Section 6(f)(ii) and (iii).

               (v)   In any case in which this Section 6(f) shall require that
     an adjustment be made to the Conversion Price, the Trigger Price shall be
     adjusted as follows:

                                                                   35.10
               Revised Trigger Price - Revised Conversion Price X --------
                                                                   33.75

               (vi)  In any case in which this Section 6(f) shall require that
     an adjustment be made immediately following a record date or an effective
     date, the Corporation may elect to defer (but only until the filing by the
     Corporation with the stock transfer or conversion agent, as the case may
     be, of the certificate required by subsection (viii)) issuing to the holder
     of any share of Convertible Preferred Stock converted after such record
     date or effective date the shares of Common Stock issuable upon such
     conversion over and above the shares of Common Stock issuable upon such
     conversion on the basis of the Conversion

                                       12
<Page>

     Price prior to adjustment, and paying to such holder any amount of cash in
     lieu of a fractional share.

               (vii) No adjustment in the Conversion Price shall be required to
     be made pursuant to this Section 6(f) unless such adjustment would require
     an increase or decrease of at least 1% of such price; PROVIDED, HOWEVER,
     that any adjustments which by reason of this subsection (f)(vii) are not
     required to be made shall be carried forward and taken into account in any
     subsequent adjustment. All calculations under this Section 6(f) shall be
     made to the nearest cent or to the nearest 1/1000th of a share, as the case
     may be. Anything in this Section 6(f) to the contrary notwithstanding, the
     Corporation shall be entitled to make such reduction in the Conversion
     Price, in addition to those required by this Section 6(f), as it in its
     discretion shall determine to be advisable in order that any stock
     dividend, subdivision of shares, distribution of rights to purchase stock
     or securities, or distribution of securities convertible into or
     exchangeable for stock hereafter made by the Corporation to its
     stockholders shall not be taxable to the recipients. Except as set forth in
     subsections (f)(i), (f)(ii), and (f)(iii) and Section 6(e) above, the
     Conversion Price shall not be adjusted for the issuance of Common Stock, or
     any securities convertible into or exchangeable for Common Stock or
     carrying the right to purchase any of the foregoing, in exchange for cash,
     property or services.

               (viii) Whenever the Conversion Price is adjusted pursuant to this
     Section 6(f), (A) the Corporation shall promptly file with the stock
     transfer or conversion agent, as appropriate, a certificate setting forth
     the Conversion Price after such adjustment and a brief statement of the
     facts requiring such adjustment and the manner of computing the same, which
     certificate shall, absent manifest error (including the failure to make any
     other required adjustment under this Section 6(f)), be conclusive evidence
     of the correctness of such adjustment, and (B) the Corporation shall also
     mail or cause to be mailed by first class mail, postage prepaid, as soon as
     practicable to each Holder a notice stating that the Conversion Price has
     been adjusted and setting forth the adjusted Conversion Price. The stock
     transfer or conversion agent, as the case may be, shall not be under any
     duty or responsibility with respect to the certificate required by this
     subsection (viii) except to exhibit the same to any Holder who requests to
     inspect it.

               (ix) In the event that at any time, as a result of an adjustment
     made pursuant to subsections (i), (ii) or (iii) of this Section 6(f), the
     Holder of any share of Convertible Preferred Stock thereafter surrendered
     for conversion shall become entitled to receive any shares of the
     Corporation other than shares of Common Stock, thereafter the Conversion
     Price of such other shares so receivable upon conversion of any share of
     Convertible Preferred Stock shall be subject to adjustment from time to
     time in a manner and on terms as nearly equivalent as practicable to the
     provisions with respect to Common Stock contained in this Section.

               (x)  The Corporation from time to time in its sole discretion may
     decrease the Conversion Price by any amount for any period of time if the
     period is at least 20 days and if the decrease is irrevocable during the
     period.

                                       13
<Page>

     Whenever the Conversion Price is so decreased, the Corporation shall mail
     to all Holders a notice of the decrease at least 15 days before the date
     the decreased Conversion Price takes effect, and such notice shall state
     the decreased Conversion Price and the period it will be in effect.

          (g)  RESERVATION OF SHARES OF COMMON STOCK. The Corporation covenants
 that it will at all times reserve and keep available, free from preemptive
 rights (other than such rights as do not affect the ownership of shares issued
 to a Holder), out of the aggregate of its authorized but unissued shares of
 Common Stock or its issued shares of Common Stock held in its treasury, or
 both, for the purpose of effecting conversions of shares of Convertible
 Preferred Stock, the full number of shares of Common Stock deliverable upon the
 conversion of all outstanding shares of Convertible Preferred Stock not
 theretofore converted or redeemed and on or before taking any action that would
 cause an adjustment of the Conversion Price resulting in an increase in the
 number of shares of Common Stock deliverable upon conversion above the number
 thereof previously reserved and available therefor, the Corporation shall take
 all such action so required. For purposes of this Section 6(g), the number of
 shares of Common Stock which shall be deliverable upon the conversion of all
 outstanding shares of Convertible Preferred Stock shall be computed as if at
 the time of computation all outstanding shares of Convertible Preferred Stock
 were held by a single holder.

          Before taking any action which would cause an adjustment reducing the
Conversion Price below the then par value (if any) of the shares of Common Stock
deliverable upon conversion of the shares of Convertible Preferred Stock, the
Corporation shall take any corporate action which may, in the opinion of its
counsel, be necessary in order that the Corporation may validly and legally
issue fully paid and non-assessable shares of Common Stock at such adjusted
Conversion Price.

          (h)  TRANSFER TAXES, ETC. The Corporation shall pay any and all
 documentary stamp, issue or transfer taxes, and any other similar taxes payable
 in respect of the issue or delivery of shares of Common Stock upon conversions
 of shares of Convertible Preferred Stock pursuant hereto; PROVIDED, HOWEVER,
 that the Corporation shall not be required to pay any tax which may be payable
 in respect of any transfer involved in the issue or delivery of shares of
 Common Stock in a name other than that of the holder of the shares of
 Convertible Preferred Stock to be converted and no such issue or delivery shall
 be made unless and until the person requesting such issue or delivery has paid
 to the Corporation the amount of any such tax or has established, to the
 satisfaction of the Corporation, that such tax has been paid.

          (i)  CONSOLIDATION OR MERGER OR SALE OF ASSETS. For purposes of this
 paragraph (i), a "Sale Transaction" means any transaction or event, including
 any merger, consolidation, sale of assets, tender or exchange offer,
 reclassification, compulsory share exchange or liquidation, in which all or
 substantially all outstanding shares of the Corporation's Common Stock are
 converted into or exchanged for stock, other securities, cash or assets or
 following which any remaining outstanding shares of Common Stock fail to meet
 the listing standards imposed by each of the New York Stock Exchange, the
 American Stock Exchange and the Nasdaq National Market at the time of such
 transaction, but shall not include any transaction the primary purpose of which
 is the reincorporation of

                                       14
<Page>

 the Corporation in another U.S. jurisdiction so long as in such transaction
 each share of Convertible Preferred Stock shall convert into an equity security
 of the successor to the Corporation having identical dividends, rights and
 preferences as the Convertible Preferred Stock. If a Sale Transaction occurs,
 then each Holder shall have the right to elect one of the following: (i) such
 Sale Transaction shall be deemed a liquidation for purposes of Section 4, and
 the amount of the liquidating distribution to holders of Common Stock for
 purposes of calculating the liquidation preference payable under Section 4
 shall be deemed to be zero, (ii) provision shall be made so that such Holder
 receives in exchange for each outstanding share of Convertible Preferred Stock
 held by such Holder the kind and amount of securities, cash or other property
 receivable upon such Sale Transaction by a holder of the number of shares of
 Common Stock into which such share of Convertible Preferred Stock might have
 been converted immediately prior to such Sale Transaction assuming such holder
 of Common Stock did not exercise his rights of election, if any, as to the kind
 or amount of securities, cash or other property receivable upon such Sale
 Transaction (provided that, if the kind or amount of securities, cash or other
 property receivable upon such Sale Transaction is not the same for each share
 of Common Stock in respect of which such rights of election shall not have been
 exercised ("NON-ELECTING SHARE"), then for the purposes of this Section 6(i)
 the kind and amount of securities, cash or other property receivable upon such
 Sale Transaction for each Non-Electing Share shall be deemed to be the kind and
 amount so receivable per share by a plurality of the Non-Electing Shares) or
 (iii) to the extent permitted under applicable law, lawful provision shall be
 made by the corporation, if any, formed by the Sale Transaction or the
 corporation, if any, whose securities, cash or other property will immediately
 after the Sale Transaction be owned, by virtue of such Sale Transaction, by the
 holders of Common Stock immediately prior to such Sale Transaction, or the
 corporation, if any, which shall have acquired (whether directly or indirectly)
 in such Sale Transaction such assets or securities of the Corporation
 (collectively the "FORMED, SURVIVING OR ACQUIRING CORPORATION"), as the case
 may be, providing that the Holder of each share of Convertible Preferred Stock
 then outstanding shall receive in exchange for each such share of Convertible
 Preferred Stock an equity security of the Formed, Surviving or Acquiring
 Corporation having substantially equivalent dividends, rights and preferences
 as the Convertible Preferred Stock ("MIRROR PREFERRED STOCK"), except that the
 Holder thereof shall have the right thereafter to convert such Mirror Preferred
 Stock into the kind and amount of securities, cash or other property receivable
 upon such Sale Transaction by a holder of the number of shares of Common Stock
 into which such share of Convertible Preferred Stock might have been converted
 immediately prior to such Sale Transaction assuming such holder of Common Stock
 did not exercise his rights of election, if any, as to the kind or amount of
 securities, cash or other property receivable upon such Sale Transaction. Each
 Holder shall be provided notice of the Sale Transaction not later than twenty
 (20) days prior to the effective date thereof, which notice shall detail the
 material terms of the Sale Transaction, including without limitation the nature
 and amount of consideration payable to the holders of Common Stock in such Sale
 Transaction. In the event that a Holder elects option (iii) and such option is
 not permitted under applicable law, at the option of the Corporation, (A) the
 Formed, Surviving or Acquiring Corporation will cause a U.S. subsidiary of such
 Formed, Surviving or Acquiring Corporation to issue a security satisfying the
 terms described in option (iii) above or (B) such Sale Transaction shall be
 deemed a liquidation for purposes of Section 4, and the amount of the
 liquidating

                                       15
<Page>

 distribution to holders of Common Stock for purposes of calculating the
 liquidation preference payable under Section 4 shall be deemed to be 20% of the
 amount of the liquidation preference payable to a Holder of Convertible
 Preferred Stock pursuant to clause (a) of Section 4 hereof (i.e., initially
 $50), as such amount may be adjusted from time to time pursuant to the terms of
 this Certificate. The Formed, Surviving or Acquiring Corporation shall, if
 applicable, make provision in its certificate or articles of incorporation or
 other constituent documents to the end that the provisions set forth in this
 Section 6(i) shall thereafter correspondingly be made applicable, as nearly as
 may reasonably be, in relation to any shares of stock or other securities or
 property thereafter deliverable on the conversion of the Convertible Preferred
 Stock.

          Notwithstanding anything to the contrary herein, there will be no
adjustment in connection with a Sale Transaction pursuant to Section 6(f) hereof
except as provided in this Section 6(i). The above provisions of this Section
6(i) shall similarly apply to successive Sale Transactions; PROVIDED, HOWEVER,
that in no event shall a Holder of a share of Convertible Preferred Stock be
entitled to more than one adjustment pursuant to this Section 6(i) in respect of
a series of related transactions.

          SECTION 7. VOTING RIGHTS. The Holders shall not have any voting rights
by virtue of their ownership of the Convertible Preferred Stock except as set
forth herein or as otherwise from time to time may be required by law. In
connection with any vote in which the holders of Common Stock are entitled to
vote (other than pursuant to Section C(7) of Article IV of the Restated
Certificate of Incorporation of the Corporation relating to the separate right
of the holders of Common Stock as a class to elect 25% of the Corporation's
directors), a Holder will have two votes for each share of Convertible Preferred
Stock held, such votes to be cast together with the votes of the holders of the
Common Stock, voting together as a single class. Any shares of Convertible
Preferred Stock held by the Corporation or any entity controlled by the
Corporation shall not have voting rights hereunder and shall not be counted in
determining the presence of a quorum.

          SECTION 8. OUTSTANDING SHARES. For purposes of this Certificate of
Resolution, all shares of Convertible Preferred Stock shall be deemed
outstanding except (i) from the date fixed for redemption pursuant to Section 5,
all shares of Convertible Preferred Stock that have been so called for
redemption under Section 5 if shares of Common Stock and funds necessary for
payment of the redemption price, as the case may be, have been irrevocably set
apart; (ii) from the date of surrender of certificates representing shares of
Convertible Preferred Stock, all shares of Convertible Preferred Stock converted
into Common Stock; and (iii) from the date of registration of transfer, all
shares of Convertible Preferred Stock held of record by the Corporation or any
subsidiary of the Corporation.

          SECTION 9. STATUS OF ACQUIRED SHARES. Shares of Convertible Preferred
Stock redeemed by the Corporation, received upon conversion pursuant to
Section 6, cancelled pursuant to Section 2 or otherwise acquired by the
Corporation will be restored to the status of authorized and unissued shares of
preferred stock, without designation as to series, and may thereafter be issued,
but not as shares of Convertible Preferred Stock.

                                       16
<Page>

          SECTION 10. PREEMPTIVE RIGHTS. The Convertible Preferred Stock is not
 entitled to any preemptive or subscription rights in respect of any securities
 of the Corporation.

          SECTION 11. COVENANT REGARDING SHARES OF COMMON STOCK. All shares of
 Common Stock which may be delivered upon conversion or redemption of shares of
 Convertible Preferred Stock, or in connection with any dividend payment, will
 upon delivery be duly and validly issued and fully paid and non-assessable,
 free of all liens and charges and not subject to any preemptive rights (other
 than rights which do not affect the Holder's right to own the shares of Common
 Stock to be issued), and prior to the applicable Redemption Date, Dividend Date
 or Conversion Date, the Corporation shall take any corporate action necessary
 therefor. The issuance of all such shares of Common Stock shall, to the extent
 permitted by law, be registered under the Securities Act of 1933, as amended.

          SECTION 12. SEVERABILITY OF PROVISIONS. Whenever possible, each
 provision hereof shall be interpreted in a manner as to be effective and valid
 under applicable law, but if any provision hereof is held to be prohibited by
 or invalid under applicable law, such provision shall be ineffective only to
 the extent of such prohibition or invalidity, without invalidating or otherwise
 adversely affecting the remaining provisions hereof. If a court of competent
 jurisdiction should determine that a provision hereof would be valid or
 enforceable if a period of time were extended or shortened or a particular
 percentage were increased or decreased, then such court may make such change as
 shall be necessary to render the provision in question effective and valid
 under applicable law.

          SECTION 13. NOTICES. Any notice to Holders or USA required pursuant to
 this Certificate of Designations shall be in writing and shall be deemed
 effectively given: (i) upon personal delivery to the party to be notified, (ii)
 three (3) business days after having been sent by registered or certified mail,
 return receipt requested, postage prepaid, (iii) one (1) day after deposit with
 a nationally recognized overnight courier, specifying next day delivery, with
 verification of receipt, and (iv) five (5) business days after having been sent
 by first class mail, postage prepaid. All notices to Holders shall be addressed
 to each Holder of record at the address of such Holder appearing on the books
 of the Corporation.

                                       17
<Page>

          IN WITNESS WHEREOF, this Certificate of Designations is executed on
behalf of the Corporation by Dara Khosrowshahi, its Executive Vice President,
and its corporate seal to be hereunto affixed and attested by Julius
Genachowski, its Secretary, this 4th day of February, 2002.

                                   USA NETWORKS, INC.

                                   By: /s/ Dara Khosrowshahi
                                      -------------------------------
                                      Name:  Dara Khosrowshahi
                                      Title: Executive Vice President

[SEAL]

Attest:

/s/ Julius Genachowski
-----------------------------------
Julius Genachowski
Secretary

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