Document:

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                                                                   EXHIBIT 10.94

                             MODIFICATION AGREEMENT

         IT IS MUTUALLY AGREED as of the 15th day of December, 2000 by and
between 180 VARICK STREET CORPORATION c/o Olmstead Properties, Inc., having an
office at 575 Eight Avenue - Suite 2400, New York, New York 10018, hereinafter
referred to as "LANDLORD", and Imclone Systems Incorporated, having a office at
180 Varick Street, 6th floor, New York, New York 10014 hereinafter referred to
as "TENANT"

         WITNESSETH:

         WHEREAS, Landlord and Tenant have previously entered into a certain
agreement of lease dated December 10, 1998, (hereinafter collectively referred
to as the "Lease") covering the entire 6th and 7th floors (the "Demised
Premises") in the building known as 180 Varick Street (the "Building") and

         WHEREAS, Landlord and Tenant now desire to modify the Lease upon the
terms and conditions hereinafter provided; (except that any concessions of any
nature in the Lease relating to rentals or rent free periods and any options for
renewal extensions or work to be performed by Landlord are hereby canceled and
expressly excluded from this Modification Agreement).

         NOW, THEREFORE, in consideration of the mutual agreements contained and
such other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

Effective on December 15, 2000 the following amendments to the Lease shall
automatically occur:

1.       There shall be added to the Demised Premises the part 5th floor (the
"Additional Space") as shown by the crosshatched floor plan attached hereto as
Exhibit A. Said Additional Space shall be subject to all of the terms and
conditions of the Lease.

2.       The Minimum Rent due with respect to the Part 5th floor (Additional
Space) shall be $63,350.00 per annum ($5,279.17 per month) from December 15,
2000 to and including December 31, 2001; $65,250.50.00 per annum ($5,437.54 per
month) from January 1, 2002 to and including December 31, 2002; $67,208.02 per
annum ($5,600.67 per month) from January 1, 2003 to and including December 31,
2003; $69,224.26 per annum ($5,768.68 per month) from January 1, 2004 to and
including December 31, 2004. The Minimum Rent due with respect to the 6th and
7th floors shall be the same as detailed in Article 41.(a)(i) of the lease dated
December 10, 1998.

3.       Article 41 (c) of the Lease shall be deleted in its entirety and the
following shall be substituted therefore;

         41 (c) "Tenants Share" shall mean 13.85%.

4.       As material inducement to the Landlord to enter into this Modification
         Agreement, Tenant agrees that the use of occupancy of the Additional
         Space shall be for office use and storage of "dry" materials only.
         Tenant further agrees that in no event or at any time during the term
         of this Agreement will Tenant utilize the Additional Space for
         biotechnology, molecular modeling, high technology research facilities
         manufacturing of diagnostic kits, vaccine, and or for the use of
         therapeutics and materials therefore. Failure to comply with this
         Article 4 shall be deemed a material default by Tenant, under the
         Lease.

5.       Tenant agrees that the electricity that shall be supplied to Tenant for
         the Additional Space shall be in accordance with the provisions of
         paragraph A of the electric Rider attached hereto. The electricity
         pursuant to Article 45. of the Lease shall remain the same for the 6th
         & 7th floors.

6.       Upon the execution of this Modification Agreement, Tenant shall deposit
$10,558.34 as additional security deposit with the Landlord. Tenant agrees that
on or before the date of any increase in the Minimum Rent (for the Additional
Space) as detailed in Article 2. of this Modification Agreement, Tenant shall
deposit with Landlord additional security so that at all times Tenant shall have
a sum equal to two (2) months of the then current Minimum Rent for the
Additional Space on deposit with the Landlord as security pursuant to Article 32
of the Lease. Tenant acknowledges that the existing terms and conditions of
Article 32 & Article 79 of the Lease shall remain the same, and that the
security deposit referred to in this Article 6 pertains to the Additional Space.
Any failure or refusal on the part of the Tenant to timely make any additional
security deposit required under this Article 6 may be deemed by Landlord as a
default under the Lease equivalent to the non-payment of rent.

7.       Tenant hereby covenants and agrees at all times hereinafter faithfully
to abide by, carry out and fully perform all the terms, covenants, provisions,
conditions and agreements contained in the Lease as hereby extended and modified
and agrees not to cause allow or suffer any breach or default thereof to occur.
Tenant hereby affirms that on the date hereof no breach or default has occurred
and that the Lease and all of its terms, conditions, covenants agreements and
provisions are in full force and effect, and that there are no defenses or
offsets thereto.

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8.       The submission of this Modification Agreement to Tenant shall not be
construed as an offer, nor shall Tenant have any rights with respect thereto,
unless and until Landlord shall execute a copy of this Modification Agreement
and deliver the same to Tenant.

9.       Upon cancellation or termination of the Lease, for any reason
whatsoever, prior to the commencement date of this Modification Agreement, this
Modification Agreement shall be deemed automatically canceled and of no force
nor effect, without the necessity of any written instrument evidencing the same,
effective as of the date of such cancellation of the Lease.

10.      The parties agree that, except as herein expressly provided, this
Modification Agreement and the Lease constitute the entire understanding between
the parties with regard to the aforementioned premises. This Modification
Agreement may not be changed orally, but only by an agreement in writing, signed
by the party against whom enforcement of any waiver, change, modification or
discharge is sought. This Modification Agreement shall not be assignable by
Tenant, except as specifically provided for in the Lease dated December 12,
1998.

11.      Tenant agrees to accept said Additional Space in the condition in which
it exists on the commencement date of the Modification Agreement. Tenant
understands and agrees that no materials whatsoever are to be furnished by
Landlord and no work whatsoever is to be furnished by Landlord in connection
with the Additional Space or any part thereof.

12.      The terms, conditions, covenants, agreements and provisions contained
in this Modification Agreement shall bind and inure to the benefit of the
parties hereto and their respective legal representatives, successors and,
except as otherwise provided in the Lease, their respective assigns.

13.      Tenant represents and warrants that it has dealt with no broker except
Olmstead Properties, Inc., (the "Broker") in connection with the execution of
this Modification Agreement or the showing of the Demised Premises and agrees to
hold and save the Landlord harmless from and against any and all liabilities
from any claims of any broker (including, without limitation, the cost of
counsel fees in connection with the defense of any such claims.) Landlord
represents that it has dealt with Olmstead Properties, Inc. regarding this
Modification Agreement

14.      Tenant agrees that any air conditioning installed shall be installed in
accordance with any applicable laws, rules and regulations. Tenant specifically
agrees that under no circumstances shall it install any air conditioning units
that extend beyond the building property line. Tenant further agrees that any
air conditioning installed shall be installed in such a manner as to prevent any
condensation waste or water from dripping outside the window. Failure to comply
with the above shall be deemed a material default under the terms of this
Agreement.

         In addition, Tenant agrees that if there currently exists any air
conditioning units that extend beyond the Building property line, Tenant shall
be fully responsible for any and all costs associated with the relocation of
said units to ensure that nothing is extending beyond the Building property
line. In the event Tenant fails to relocate any air conditioning units as
aforesaid, Landlord may relocate same for the accounts of and at the expense of
Tenant by payment or otherwise, without investigation as to the validity thereof
or any offsets or defenses thereto, and Tenant shall promptly reimburse Landlord
as Additional Rent for all costs, disbursements, fees and expenses including
without limitation, legal fees incurred in connection with the aforesaid.

15.      Landlord and Tenant agree that Article 83. Of the Lease dated December
10, 1998 shall only be applicable for the 6th & 7th floors and shall not be
included for the purposes of the Additional Space.

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Modification Agreement, as of the day and year first above written.

WITNESSED BY:                                 180 VARICK STREET CORPORATION
                                              C/O OLMSTEAD PROPERTIES, INC.

BY: __________________________                BY: ______________________________
                                                  Vice President

WITNESSED BY:                                 IMCLONE SYSTEMS INCORPORATED

BY: __________________________                BY: ______________________________

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                                    EXHIBIT A

                         Floor plan of Demised Premises

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RIDER AGREEMENT:

To be attached to and from a part of:

LEASE dated December 15, 2000 Premises part 5th floor (Additional Space)
Between 180 Varick Street Corporation c/o Olmstead Properties, Inc. 575 Eight
Avenue, New York, NY 10018 Landlord and ImClone Systems Incorporated, 180 Varick
Street, New York, NY 10014 as Tenant

         At the commencement of the term hereof electric current shall be
supplied to Tenant at the demised premises in accordance with the provisions of
clause A or B or F of this Article, subject to the other terms and conditions of
this Article and lease. A. Submetering - if electric current be supplied by
Landlord, at Landlord's option, pursuant to this clause, Tenant covenants and
agrees to purchase the same from Landlord or Landlord's designated agent, at
charges, taxes, terms and rates set by Landlord from time to time but, except as
hereinafter set forth, not more than those specified in Service Classification
No. 4 on September 7, 1970, that being the date immediately prior to which the
rates of consolidated Edison Company of New York, Inc. were adjusted and
consolidated with respect to redistribution of electric current to commercial
buildings. Such charges, taxes, terms and rates may be revised by Landlord, at
its option, from time to time, in the same proportion as any increases after the
aforesaid date in the charges, taxes, terms or rates to Landlord in connection
with the supply of electric current to the building of which the demised
premises are a part (hereinafter referred to as the "building"). When more than
one meter measures the electrical service to the demised premises, the service
rendered through each meter shall be separately computed and billed in
accordance with the charges, taxes, terms and rates stated herein. Bills shall
be rendered at such times as Landlord may elect and, commencing on the earlier
of (i) Tenant's occupancy of all or any portion of the demised premises, or (ii)
the commencement date of the term of this lease, the amount as computed from
meter reading shall be deemed to be, and be paid as, additional rent without
set-off or deduction. B. Rent Inclusion - If electric current be supplied by
Landlord, at Landlord's option, pursuant to this clause, Tenant covenants and
agrees to have it supplied to Tenant a the demised premises based on the method
of including the use thereof within the annual rent and the annual rent reserved
herein shall be increased as hereinafter set forth, in consideration of Landlord
supplying electric current as an additional service as hereinafter provided. At
any time after Tenant is in possession of the demised premises, a reputable
electrical consultant selected by Landlord shall (but, if this lease be a
renewal or shall subsequently be extended, or if an electric rent inclusion
modification agreement is being executed in connection with this lease. Landlord
shall have the option, but not the obligation to) make a survey of the
electrical equipment, usage and powerload to ascertain the electric current
consumption and demand in the demised premises on an annual basis, and calculate
the annual rent increase resulting therefrom utilizing charges, taxes, term and
rates as set by Landlord from time to time, but, except as hereinafter set forth
not more than those specified in the Service Classification No. 2 on September
7, 1970, that being the date immediately prior to which the rates of
Consolidated Edison Company of New York, Inc. were adjusted and consolidated
with respect to redistribution of electric current to commercial buildings. Such
charges, taxes, terms and rates may be revised by Landlord, at its option, from
time to time, in the same proportion as any increases after the aforesaid date
in the charges, taxes, terms or rates to Landlord in connection with the supply
of electric current to the building. Following the making of any such survey,
the parties shall execute an agreement prepared by Landlord amending this lease
and setting forth the increase in annual rent calculated as aforesaid, as of the
date of the commencement of the furnishing of electric current to the demised
premises pursuant to this clause B, but such increase shall be effective from
that date even if such agreement is not executed. Landlord, its agent or
consultant, is given the right to make surveys, from time to time, in the
demised premises covering the electric equipment and use of electric current.
If, after the date of such initial survey (or if subdivision "(i)" or "(ii)"
above is applicable, after the date on which the annual rent payable by Tenant
was last increased in consideration of Landlord supplying electric to the
demised premises) there are any additions to or increases in (i) the equipment
or usage in the demised premises, or (ii) in the charges, terms and/or rate to
Landlord by the public utility corporation supplying electric current to the
building, or (iii) in any taxes thereon which Landlord is obligated to pay, or
(iv) if Tenant shall regularly remain open for business other than during those
hours incorporated in any prior electric survey, then, and in any such instance
or instances, the annual rent reserved therein shall be further increased in
accordance with the provisions of this Article to reflect such additions,
increases or additional use as of the effective date thereof. If Landlord and
Tenant cannot agree on the amount of any such increase, as hereinbefore
described, the same shall be determined by a reputable electric consultant
selected by Landlord and paid equally by both parties. The parties shall then
execute an agreement prepared by Landlord amending this lease and setting forth
the new annual rent resulting from such increase and confirming the effective
date thereof, but such increase shall be effective from such date even if such
agreement is not executed. C. Landlord shall not in any way be liable or
responsible to Tenant for any loss or damage or expense which Tenant may sustain
or incur if either the quantity or character of electric service is changed or
is no longer available or suitable for Tenant's requirements. Tenant's use of
electric current in the demised premises shall not at any time exceed the
capacity of any of the electrical conductors and facilities in or otherwise
serving the demised premises. In order to insure that such capacity is not
exceeded and to avert any possible adverse effect upon the building's electric
service. Tenant shall not, without Landlord's prior written consent in each
instance, connect any fixtures, appliances or equipment (other than a reasonable
number of table or floor lamps, typewriters and similar small office machines
using comparable electric current) to the building's electric distribution
system nor make any alteration or addition to the electric system of the demised
premises. Should Landlord grant such consent, all additional risers or other
equipment required thereof shall be provided by Landlord, and all costs and
expenses in connection therewith, including, without limitation, those for
filing and supervision, shall be paid by Tenant upon Landlord's demand, as
additional rent, without setoff or deduction. As a condition to granting such
consent, Landlord may require Tenant to agree to an increase in the annual rent
by an amount which will reflect the value to Tenant of the additional service to
be furnished by Landlord, to wit: the potential additional

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electrical current to be made available to Tenant based upon the estimated
initial total capacity of such additional risers or other equipment. If Landlord
and Tenant cannot agree on the amount of such annual rent increase, the same
shall be determined by a reputable electrical consultant to selected by Landlord
and paid equally by both parties. The parties shall then execute an agreement
prepared by Landlord amending this lease and setting forth the new annual rent
resulting from such increase and confirming the effective date thereof, but such
increase shall be effective from such date even if such agreement is not
executed. E. Landlord reserves the right to discontinue furnishing electric
current to Tenant in the demised premises at any time upon not less than thirty
(30) days' notice to Tenant. F. If Landlord, at Landlord's option, (i) exercises
such right of discontinuance as provided in clause E, or (ii) requires Tenant to
initially obtain its electric current directly from the public utility
corporation supplying electric current to the building, this lease shall
continue in full force and effect and shall be unaffected thereby, except only
that, from and after the effective date of such discontinuance, or the
commencement of direct usage, as the case may be. Landlord shall not be
obligated to furnish electric current to Tenant and except that, if Landlord
shall have been furnishing electric current on a rent inclusion basis, from and
after the effective date of such discontinuance, the annual rent payable under
this lease shall be reduced by an amount equal to the aggregate amount of all
increases of the annual rent reserved herein pursuant to clause B of this
Article. In either aforesaid event, if Landlord is not to furnish electric
current to Tenant, Tenant shall arrange to obtain electric current directly from
the public utility corporation supplying electric current to the building; and
in any event, all risers, equipment and other facilities which may be required
for Tenant to obtain electric current directly from such public utility
corporation shall, at Tenant's expense, payable to Landlord upon demand, as
additional rent, without set-off or deduction, be installed by Landlord, if in
Landlord's judgment the same are necessary and will not cause damage or injury
to the building or any part thereof or create a hazardous condition or entail
excessive alterations, repairs or expense interfere with or disturb any other
building tenants or occupants; and in any event, any such installation shall be
maintained by Tenant, at its expense, and shall be subject to such conditions as
Landlord and/or the public utility corporation may require. If Landlord shall
not furnish electric current to Tenant, it shall not be liable to Tenant
therefore and the same shall not be deemed to be a lessening or diminution of
services within the meaning of any law, rule or regulation now or hereafter
enacted, promulgated or issued. G. If any taxes or charges are or shall be
imposed upon Landlord or its agent in connection with the sale or resale of
electrical energy to Tenant, Tenant covenants and agrees that, where permitted
by law, Tenant's pro-rate share of such taxes or charges shall be passed on to
Tenant and paid by Tenant to Landlord or its agent upon demand, as additional
rent, without set-off or deduction. At all times during the term of this lease
Tenant will comply with all present and future General Rules, Regulations, Terms
and Conditions applicable to service equipment, wiring and Requirements in
accordance with the regulations of the public utility corporation supplying
electric current to the building. H. In the event that any increased or
additional rent under this Article is not paid within 30 days after a bill is
rendered, Landlord may, without further notice and without waiving its rights to
any other remedy or remedies it may have, discontinue the service of electric
current to the demised premises without releasing Tenant from any liability
under this lease and without Landlord or Landlord's agent incurring any
liability for any damage or loss sustained by Tenant by such discontinuance of
service. I. Tenant covenants and agrees that at no time will the connected
electrical load for any one full or partial floor of the demised premises exceed
6 watts per square foot of usable area unless the rent has been increased
pursuant to this Article to reflect the additional load. J. It is agreed that
Landlord, from time to time, may change the method of supplying electric current
to Tenant at the demised premises in any manner referred to in this lease or
otherwise, provided that in so doing Landlord shall comply with all applicable
laws. K. At the option of Landlord, Tenant agrees to purchase from Landlord, or
its agent, all lighting tubes, lamps, bulbs and ballasts used in the demised
premises and to pay the cost of Installation thereof all as additional rent
without set-off or deduction, upon rendition of bills therefor.

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                      2ND MODIFICATION OF LEASE AGREEMENT

         IT IS MUTUALLY AGREED as of the 29th day of May, 2001 by and between
180 VARICK STREET CORPORATION c/o Olmstead Properties, Inc., having an office at
575 Eight Avenue - Suite 2400, New York, New York 10018, hereinafter referred to
as "LANDLORD", and Imclone Systems Incorporated, having a office at 180 Varick
Street, 6th floor, New York, New York 10014 hereinafter referred to as "TENANT"

         WITNESSETH:

         WHEREAS, Landlord and Tenant have previously entered into a certain
agreement of lease dated December 10, 1998, and modified by a Modification
Agreement dated December 15, 2000 (hereinafter collectively referred to as the
"Lease") covering the entire 6th and 7th floors, and part 5th floor (Additional
spaces) (the "Demised Premises") in the building known as 180 Varick Street (the
"Building") and

         WHEREAS, Landlord and Tenant now desire to modify the Lease upon the
terms and conditions hereinafter provided; (except that any concessions of any
nature in the Lease relating to rentals or rent free periods and any options for
renewal extensions or work to be performed by Landlord are hereby canceled and
expressly excluded from this 2nd Modification of Lease Agreement).

         NOW, THEREFORE, in consideration of the mutual agreements contained and
such other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

Effective on June 1, 2001 the following amendments to the Lease shall
automatically occur:

1.       There shall be added to the Demised Premises a portion of the 5th floor
(Units 508 & 512) & a portion of the 8th Floor (Unit 803) (collectively the "2nd
additional Spaces" as shown by the crosshatched floor plan attached hereto as
Exhibit A. Said 2nd Additional Spaces shall be subject to all of the terms and
conditions of the Lease as hereby modified.

2.       The Minimum Rent due with respect to the 2nd Additional Spaces shall be
$151,800.00 per annum ($12,650.00 per month) from June 1, 2001 to and including
May 31, 2002; $156,354.00 per annum ($13,029.50 per month) from June 1, 2002 to
and including May 31, 2003; $161,044.62 per annum ($13,420.39 per month) from
June 1, 2003 to and including May 31, 2004; $165,875.95 per annum ($13,823.00
per month) from June 1, 2004 to and including December 31, 2004. The Minimum
Rent due with respect to the 6th and 7th floors shall be the same as detailed in
Article 41.(a)(i) of the lease dated December 10, 1998, and the Minimum Rent Due
with respect to the Additional Spaces shall be the same as detailed in Article 2
of the Modification Agreement dated December 15, 2000.

4.       Article 41 (c) of the Lease shall be deleted in its entirety and the
following shall be substituted therefore;

         41 (c) "Tenants Share" shall mean 15.28%.

4.       As material inducement to the Landlord to enter into this 2nd
         Modification Agreement of Lease, Tenant agrees that the use of
         occupancy of the 2nd Additional Spaces shall be for office use and
         storage of "dry" materials only. Tenant further agrees that in no event
         or at any time during the term of this Agreement will Tenant utilize
         the 2nd Additional Spaces for biotechnology, molecular modeling, high
         technology research facilities manufacturing of diagnostic kits,
         vaccine, and or for the use of therapeutics and materials therefore.
         Failure to comply with this Article 4 shall be deemed a material
         default by Tenant, under the Lease as hereby modified..

5.       Tenant agrees that the electricity that shall be supplied to Tenant for
         the 2nd Additional Spaces shall be in accordance with the provisions of
         paragraph A of the electric Rider attached hereto. The electricity
         pursuant to Article 45 of the Lease shall remain the same for the 6th &
         7th floors.

6.       Upon the execution of this 2nd Modification of Lease Agreement, Tenant
shall deposit $101,200.00 as additional security deposit with the Landlord.
Tenant agrees that on or before the date of any increase in the Minimum Rent
(for the 2nd Additional Spaces) as detailed in Article 2. of this 2nd
Modification Agreement, Tenant shall deposit with Landlord additional security
so that at all times Tenant shall have a sum equal to eight months of the then
current Minimum Rent for the 2nd Additional Spaces on deposit with the Landlord
as security pursuant to Article 32 of the Lease. Tenant acknowledges that the
existing terms and conditions of Article 32 & Article 79 of the Lease shall
remain the same, and that the security deposit referred to in this Article 6
pertains only to the 2nd Additional Spaces. Any failure or refusal on the part
of the Tenant to timely make any additional security deposit required under this
Article 6 may be deemed by Landlord as a default under the Lease equivalent to
the non-payment of rent.

7.       Tenant hereby covenants and agrees at all times hereinafter faithfully
to abide by, carry out and fully perform all the terms, covenants, provisions,
conditions and agreements contained in the Lease as hereby modified and

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agrees not to cause, allow or suffer any breach or default thereof to occur.
Tenant hereby affirms that on the date hereof no breach or default has occurred
and that the Lease and all of its terms, conditions, covenants agreements and
provisions are in full force and effect, and that there are no defenses or
offsets thereto.

8.       The submission of this 2nd Modification of Lease Agreement to Tenant
shall not be construed as an offer, nor shall Tenant have any rights with
respect thereto, unless and until Landlord shall execute a copy of this 2nd
Modification of Lease Agreement and deliver the same to Tenant.

9.       Upon cancellation or termination of the this 2nd Modification of Lease
Agreement, for any reason whatsoever, prior to the commencement date of this 2nd
Modification of Lease Agreement, this 2nd Modification of Lease Agreement shall
be deemed automatically canceled and of no force nor effect, without the
necessity of any written instrument evidencing the same, effective as of the
date of such cancellation of the Lease.

11.      The parties agree that, except as herein expressly provided, this 2nd
Modification of Lease Agreement and the Lease (as previously modified)
constitute the entire understanding between the parties with regard to the
aforementioned premises. This 2nd Modification of Lease Agreement may not be
changed orally, but only by an agreement in writing, signed by the party against
whom enforcement of any waiver, change, modification or discharge is sought.
This 2nd Modification of Lease Agreement shall not be assignable by Tenant,
except as specifically provided for in the Lease dated December 12, 1998.

11.      Tenant agrees to accept said 2nd Additional Spaces in the condition in
which it exists on the commencement date of the 2nd Modification of Lease
Agreement. Tenant understands and agrees that no materials whatsoever are to be
furnished by Landlord and no work whatsoever is to be furnished by Landlord in
connection with the 2nd Additional Spaces or any part thereof.

12.      The terms, conditions, covenants, agreements and provisions contained
in this 2nd Modification of Lease Agreement shall bind and inure to the benefit
of the parties hereto and their respective legal representatives, successors
and, except as otherwise provided in the Lease, their respective assigns.

13.      Tenant represents and warrants that it has dealt with no broker except
Olmstead Properties, Inc., (the "Broker") in connection with the execution of
this 2nd Modification Agreement or the showing of the Demised Premises and
agrees to hold and save the Landlord harmless from and against any and all
liabilities from any claims of any broker (including, without limitation, the
cost of counsel fees in connection with the defense of any such claims.)
Landlord represents that it has dealt with Olmstead Properties, Inc. regarding
this 2nd Modification of Lease Agreement

14.      Tenant agrees that any air conditioning installed shall be installed in
accordance with any applicable laws, rules and regulations. Tenant specifically
agrees that under no circumstances shall it install any air conditioning units
that extend beyond the building property line. Tenant further agrees that any
air conditioning installed shall be installed in such a manner as to prevent any
condensation waste or water from dripping outside the window. Failure to comply
with the above shall be deemed a material default under the terms of this
Agreement.

         In addition, Tenant agrees that if there currently exists any air
conditioning units that extend beyond the Building property line, Tenant shall
be fully responsible for any and all costs associated with the relocation of
said units to ensure that nothing is extending beyond the Building property
line. In the event Tenant fails to relocate any air conditioning units as
aforesaid, Landlord may relocate same for the accounts of and at the expense of
Tenant by payment or otherwise, without investigation as to the validity thereof
or any offsets or defenses thereto, and Tenant shall promptly reimburse Landlord
as Additional Rent for all costs, disbursements, fees and expenses including
without limitation, legal fees incurred in connection with the aforesaid.

15.      Landlord and Tenant agree that Article 83. Of the Lease dated December
10, 1998 shall only be applicable for the 6th & 7th floors and shall not be
included for the purposes of the 2nd Additional Spaces.

         IN WITNESS WHEREOF, the parties hereto have duly executed this 2nd
Modification of Lease Agreement, as of the day and year first above written.

IMCLONE SYSTEMS INCORPORATED                180 VARICK STREET CORPORATION
                                            C/O OLMSTEAD PROPERTIES, INC.

BY:__________________________               BY: _________________________
                                                Vice President

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                                    EXHIBIT A

                         Floor plan of Demised Premises

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ELECTRICAL RIDER

To be attached to and from a part of: 2nd Modification of Lease Agreement

LEASE dated May 29, 2001 Premises Part 5th & 8th floors (2nd Additional Space)
Between 180 Varick Street Corporation c/o Olmstead Properties, Inc. as Landlord
and ImClone Systems Incorporated, as Tenant

         At the commencement of the term hereof electric current shall be
supplied to Tenant at the demised premises in accordance with the provisions of
clause A or B or F of this Article, subject to the other terms and conditions of
this Article and lease. A. Submetering - if electric current be supplied by
Landlord, at Landlord's option, pursuant to this clause, Tenant covenants and
agrees to purchase the same from Landlord or Landlord's designated agent, at
charges, taxes, terms and rates set by Landlord from time to time but, except as
hereinafter set forth, not more than those specified in Service Classification
No. 4 on September 7, 1970, that being the date immediately prior to which the
rates of consolidated Edison Company of New York, Inc. were adjusted and
consolidated with respect to redistribution of electric current to commercial
buildings. Such charges, taxes, terms and rates may be revised by Landlord, at
its option, from time to time, in the same proportion as any increases after the
aforesaid date in the charges, taxes, terms or rates to Landlord in connection
with the supply of electric current to the building of which the demised
premises are a part (hereinafter referred to as the "building"). When more than
one meter measures the electrical service to the demised premises, the service
rendered through each meter shall be separately computed and billed in
accordance with the charges, taxes, terms and rates stated herein. Bills shall
be rendered at such times as Landlord may elect and, commencing on the earlier
of (i) Tenant's occupancy of all or any portion of the demised premises, or (ii)
the commencement date of the term of this lease, the amount as computed from
meter reading shall be deemed to be, and be paid as, additional rent without
set-off or deduction. B. Rent Inclusion - If electric current be supplied by
Landlord, at Landlord's option, pursuant to this clause, Tenant covenants and
agrees to have it supplied to Tenant a the demised premises based on the method
of including the use thereof within the annual rent and the annual rent reserved
herein shall be increased as hereinafter set forth, in consideration of Landlord
supplying electric current as an additional service as hereinafter provided. At
any time after Tenant is in possession of the demised premises, a reputable
electrical consultant selected by Landlord shall (but, if this lease be a
renewal or shall subsequently be extended, or if an electric rent inclusion
modification agreement is being executed in connection with this lease. Landlord
shall have the option, but not the obligation to) make a survey of the
electrical equipment, usage and powerload to ascertain the electric current
consumption and demand in the demised premises on an annual basis, and calculate
the annual rent increase resulting therefrom utilizing charges, taxes, term and
rates as set by Landlord from time to time, but, except as hereinafter set forth
not more than those specified in the Service Classification No. 2 on September
7, 1970, that being the date immediately prior to which the rates of
Consolidated Edison Company of New York, Inc. were adjusted and consolidated
with respect to redistribution of electric current to commercial buildings. Such
charges, taxes, terms and rates may be revised by Landlord, at its option, from
time to time, in the same proportion as any increases after the aforesaid date
in the charges, taxes, terms or rates to Landlord in connection with the supply
of electric current to the building. Following the making of any such survey,
the parties shall execute an agreement prepared by Landlord amending this lease
and setting forth the increase in annual rent calculated as aforesaid, as of the
date of the commencement of the furnishing of electric current to the demised
premises pursuant to this clause B, but such increase shall be effective from
that date even if such agreement is not executed. Landlord, its agent or
consultant, is given the right to make surveys, from time to time, in the
demised premises covering the electric equipment and use of electric current.
If, after the date of such initial survey (or if subdivision "(i)" or "(ii)"
above is applicable, after the date on which the annual rent payable by Tenant
was last increased in consideration of Landlord supplying electric to the
demised premises) there are any additions to or increases in (i) the equipment
or usage in the demised premises, or (ii) in the charges, terms and/or rate to
Landlord by the public utility corporation supplying electric current to the
building, or (iii) in any taxes thereon which Landlord is obligated to pay, or
(iv) if Tenant shall regularly remain open for business other than during those
hours incorporated in any prior electric survey, then, and in any such instance
or instances, the annual rent reserved therein shall be further increased in
accordance with the provisions of this Article to reflect such additions,
increases or additional use as of the effective date thereof. If Landlord and
Tenant cannot agree on the amount of any such increase, as hereinbefore
described, the same shall be determined by a reputable electric consultant
selected by Landlord and paid equally by both parties. The parties shall then
execute an agreement prepared by Landlord amending this lease and setting forth
the new annual rent resulting from such increase and confirming the effective
date thereof, but such increase shall be effective from such date even if such
agreement is not executed. C. Landlord shall not in any way be liable or
responsible to Tenant for any loss or damage or expense which Tenant may sustain
or incur if either the quantity or character of electric service is changed or
is no longer available or suitable for Tenant's requirements. Tenant's use of
electric current in the demised premises shall not at any time exceed the
capacity of any of the electrical conductors and facilities in or otherwise
serving the demised premises. In order to insure that such capacity is not
exceeded and to avert any possible adverse effect upon the building's electric
service. Tenant shall not, without Landlord's prior written consent in each
instance, connect any fixtures, appliances or equipment (other than a reasonable
number of table or floor lamps, typewriters and similar small office machines
using comparable electric current) to the building's electric distribution
system nor make any alteration or addition to the electric system of the demised
premises. Should Landlord grant such consent, all additional risers or other
equipment required thereof shall be provided by Landlord, and all costs and
expenses in connection therewith, including, without limitation, those for
filing and supervision, shall be paid by Tenant upon Landlord's demand, as

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additional rent, without setoff or deduction. As a condition to granting such
consent, Landlord may require Tenant to agree to an increase in the annual rent
by an amount which will reflect the value to Tenant of the additional service to
be furnished by Landlord, to wit: the potential additional electrical current to
be made available to Tenant based upon the estimated initial total capacity of
such additional risers or other equipment. If Landlord and Tenant cannot agree
on the amount of such annual rent increase, the same shall be determined by a
reputable electrical consultant to selected by Landlord and paid equally by both
parties. The parties shall then execute an agreement prepared by Landlord
amending this lease and setting forth the new annual rent resulting from such
increase and confirming the effective date thereof, but such increase shall be
effective from such date even if such agreement is not executed. E. Landlord
reserves the right to discontinue furnishing electric current to Tenant in the
demised premises at any time upon not less than thirty (30) days' notice to
Tenant. F. If Landlord, at Landlord's option, (i) exercises such right of
discontinuance as provided in clause E, or (ii) requires Tenant to initially
obtain its electric current directly from the public utility corporation
supplying electric current to the building, this lease shall continue in full
force and effect and shall be unaffected thereby, except only that, from and
after the effective date of such discontinuance, or the commencement of direct
usage, as the case may be. Landlord shall not be obligated to furnish electric
current to Tenant and except that, if Landlord shall have been furnishing
electric current on a rent inclusion basis, from and after the effective date of
such discontinuance, the annual rent payable under this lease shall be reduced
by an amount equal to the aggregate amount of all increases of the annual rent
reserved herein pursuant to clause B of this Article. In either aforesaid event,
if Landlord is not to furnish electric current to Tenant, Tenant shall arrange
to obtain electric current directly from the public utility corporation
supplying electric current to the building; and in any event, all risers,
equipment and other facilities which may be required for Tenant to obtain
electric current directly from such public utility corporation shall, at
Tenant's expense, payable to Landlord upon demand, as additional rent, without
set-off or deduction, be installed by Landlord, if in Landlord's judgment the
same are necessary and will not cause damage or injury to the building or any
part thereof or create a hazardous condition or entail excessive alterations,
repairs or expense interfere with or disturb any other building tenants or
occupants; and in any event, any such installation shall be maintained by
Tenant, at its expense, and shall be subject to such conditions as Landlord
and/or the public utility corporation may require. If Landlord shall not furnish
electric current to Tenant, it shall not be liable to Tenant therefore and the
same shall not be deemed to be a lessening or diminution of services within the
meaning of any law, rule or regulation now or hereafter enacted, promulgated or
issued. G. If any taxes or charges are or shall be imposed upon Landlord or its
agent in connection with the sale or resale of electrical energy to Tenant,
Tenant covenants and agrees that, where permitted by law, Tenant's pro-rate
share of such taxes or charges shall be passed on to Tenant and paid by Tenant
to Landlord or its agent upon demand, as additional rent, without set-off or
deduction. At all times during the term of this lease Tenant will comply with
all present and future General Rules, Regulations, Terms and Conditions
applicable to service equipment, wiring and Requirements in accordance with the
regulations of the public utility corporation supplying electric current to the
building. H. In the event that any increased or additional rent under this
Article is not paid within 30 days after a bill is rendered, Landlord may,
without further notice and without waiving its rights to any other remedy or
remedies it may have, discontinue the service of electric current to the demised
premises without releasing Tenant from any liability under this lease and
without Landlord or Landlord's agent incurring any liability for any damage or
loss sustained by Tenant by such discontinuance of service. I. Tenant covenants
and agrees that at no time will the connected electrical load for any one full
or partial floor of the demised premises exceed 6 watts per square foot of
usable area unless the rent has been increased pursuant to this Article to
reflect the additional load. J. It is agreed that Landlord, from time to time,
may change the method of supplying electric current to Tenant at the demised
premises in any manner referred to in this lease or otherwise, provided that in
so doing Landlord shall comply with all applicable laws. K. At the option of
Landlord, Tenant agrees to purchase from Landlord, or its agent, all lighting
tubes, lamps, bulbs and ballasts used in the demised premises and to pay the
cost of Installation thereof all as additional rent without set-off or
deduction, upon rendition of bills therefor.

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                      3RD MODIFICATION OF LEASE AGREEMENT

         IT IS MUTUALLY AGREED as of the 30th day of December, 2002 by and
between 180 VARICK STREET CORPORATION c/o Olmstead Properties, Inc., having an
office at 575 Eight Avenue - Suite 2400, New York, New York 10018, hereinafter
referred to as "LANDLORD", and ImClone Systems Incorporated, having a office at
180 Varick Street, 6th floor, New York, New York 10014 hereinafter referred to
as "TENANT"

         WITNESSETH:

         WHEREAS, Landlord and Tenant have previously entered into a certain
agreement of lease dated December 10, 1998, and modified by a Modification
Agreement dated December 15, 2000 and a 2nd Modification of Lease Agreement
dated May 29, 2001 (hereinafter collectively referred to as the "Lease")
covering the entire 6th and 7th floors, part 5th floor, and part 8th floor
(Additional Space) collectively (the "Demised Premises") in the building known
as 180 Varick Street (the "Building") and

         WHEREAS, Landlord and Tenant now desire to modify the Lease upon the
terms and conditions hereinafter provided; (except that any concessions of any
nature in the Lease relating to rentals or rent free periods and any options for
renewal extensions or work to be performed by Landlord are hereby expressly
excluded with respect to the 3rd Additional Space.

         NOW, THEREFORE, in consideration of the mutual agreements contained and
such other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

Effective on January 1, 2003 the following amendments to the Lease shall
automatically occur:

1.       There shall be added to the Demised Premises a portion of the 8th floor
(the "3rd Additional Space") as shown by the crosshatched floor plan attached
hereto as Exhibit A. Said 3rd Additional Space shall be subject to all of the
terms and conditions of the Lease as hereby modified.

2.       The Minimum Rent due with respect to the 3rd Additional Space shall be
$232.625.11 from January 1, 2003 to and including January 31, 2003; and
$1,000.00 per month for the period February 1, 2003 to and including December
31, 2004. Said Minimum Rent is in addition to all other rents already detailed
in Lease.

3.       Tenant shall pay a Tax Escalation with respect to the 3rd Additional
space detailed herein. Said escalation shall be in addition to any other tax
escalation already detailed in the Lease.

         (a)      TAX ESCALATION:

                  (A)      (i)      "Taxes" shall mean the real estate taxes and
assessments and special assessments imposed upon the Building and/or the land on
which the Building is situated by any governmental bodies or authorities (the
"Land"). If at any time during the term of this Lease the methods of taxation
prevailing at the commencement of the term hereof shall be altered so that in
lieu of, or as an addition to or as a substitute for the whole or any part of
the taxes, assessments, levies, impositions or charges now levied, assessed and
imposed (a) a tax, assessment, levy or otherwise on the tents received
therefrom, or (b) a license fee measured by the rent payable by Tenant to
Landlord, or (c) any other such additional or substitute tax, assessment, levy,
imposition or charge, then all such taxes, assessments, levies, impositions or
charges or the part thereof so measured or based shall be deemed to be included
within the term "Taxes" for the purpose hereof.

                           (ii)     "Tax Year" shall mean the fiscal year
commencing on July 1 and ending on June 30 (or such other period as hereafter
may be duly adopted by the City of New York as its fiscal year for real estate
tax purposes)

                  (B)      (i)      If the Taxes for any Tax Year shall be more
than the Base Tax, Tenant shall pay as Additional Rent for such Tax Year an
amount equal to Tenant's Share of the amount by which the Taxes for such Tax
Year are greater than the Base Tax (the amount payable by Tenant is hereinafter
called the "Tax Payment"). The Tax Payment shall be prorated, if necessary, to
correspond with that portion of a Tax Year occurring within the term of this
Lease. The Tax payment shall be payable by Tenant within ten (10) days after
receipt of a demand from Landlord therefor. In addition to and supplementing the
foregoing. Landlord may estimate the amount of the Tax Payment that will be due
from Tenant to Landlord and notify Tenant of the amount so estimated. Thereupon
Tenant shall pay the amount so estimated to Landlord, in equal monthly
installments, in advance, on the first day of each calendar month during the
applicable Tax Year. Within sixty (60) days after the end of each Tax Year,
Landlord shall deliver a copy to Tenant of all tax bills for such Tax Year,
together with a statement showing the amount of Tenant's Tax Payment. If during
the applicable Tax Year. Within sixty (60) days after the end of each Tax Year.
Landlord shall deliver a copy to Tenant of all tax bills for such Tax year,
together with a statement showing the amount of Tenant's Tax Payment. If the
amount of such monthly payments paid by

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Tenant exceeds the actual amount due, the overpayment shall be credited on
Tenants next succeeding payment or, during the last year of the term, Landlord
will refund such excess to Tenant within thirty (30) days following the
expiration of the term, if Tenant is not in default hereunder. If the amount of
such monthly payments paid by Tenant shall be less that the actual amount due,
then Tenant shall pay to Landlord the difference between the amount paid by
Tenant and the actual amount due within ten (10) days after demand from
Landlord.

                           (ii)     In the event the Base Tax is reduced as a
result of an appropriate proceeding. Landlord shall have the right to adjust the
amount of Tax Payment due from Tenant for any Tax Year in which Tenant is or was
obligated to pay a Tax Payment hereunder, and Tenant agrees to pay the amount of
said adjustment on the next rental installment day immediately following receipt
of a rent statement from Landlord setting forth the amount of said adjustment.

                  (C)      Only Landlord shall be eligible to institute tax
reduction or other proceedings to reduce the assessed valuation of the Land and
the Building. Should Landlord be successful in any such reduction proceedings
and obtain a rebate for periods during which Tenant has paid its share of
increases. Landlord shall after deducting its expenses, including attorneys'
fees and disbursements in connection therewith, return Tenant's Share of such
rebate to Tenant.

                  (D)      With respect to any period at the expiration of the
term this Lease that shall constitute a partial Tax Year, Landlord's statement
shall apportion the amount of the Additional Rent due hereunder. The obligation
of Tenant in respect to such Additional Rent applicable for the last year of the
term of this Lease or part thereof shall survive the expiration of the term of
this Lease.

                  (E)      Notwithstanding the fat the increase in rent is
measured by an increase in Taxes, such increase is Additional Rent and shall be
paid by Tenant as provide regardless of the fact that Tenant may be exempt, in
whole or in part, from the payment of any taxes by reason of Tenant's diplomatic
or other tax-exempt status or for any other reason whatsoever.

                  (F)      The benefit of any discount for any early payment or
prepayment of Taxes shall accrue solely to the benefit of Landlord, as such
benefits shall not be subtracted from the Taxes payable for any comparative
year.

                  (G)      The statements of the Taxes to be furnished by
Landlord as provided above shall constitute a final determination as between
Landlord and Tenant of the Taxes for the periods represented thereby, unless
Tenant within thirty (30) days after they are furnished shall in writing
challenge their accuracy or their appropriateness. If Tenant shall dispute said
statements, then, pending the resolution of such dispute, Tenant shall pay the
additional rent to Landlord in accordance with the statement furnished by
Landlord.

         (b)      BASE TAX shall mean Taxes for the period of July 1, 2002
                  through June 30, 2003.

         (c)      TENANT'S SHARE shall be 1.51%

4.       Tenant agrees that the electricity that shall be supplied to Tenant for
the 3rd Additional Space shall be in accordance with the provisions of paragraph
A of the electric Rider attached hereto. The electricity pursuant to Article 45
of the Lease shall remain the same for the 6th & 7th floors.

5.       Tenant hereby covenants and agrees at all times hereinafter faithfully
to abide by, carry out and fully perform all the terms, covenants, provisions,
conditions and agreements contained in the Lease as hereby extended and modified
and agrees not to cause, allow or suffer any breach or default thereof to occur.
Tenant hereby affirms that on the date hereof no breach or default beyond any
applicable notice or grace period has occurred and that the Lease and all of its
terms, conditions, covenants agreements and provisions are in full force and
effect, and that there are no defenses or offsets thereto.

6.       The submission of this 3rd Modification of Lease Agreement to Tenant
shall not be construed as an offer, nor shall Tenant have any rights with
respect thereto, unless and until Landlord shall execute a copy of this 3rd
Modification of Lease Agreement and deliver the same to Tenant.

7.       Upon cancellation or termination of the Lease, for any reason
whatsoever, prior to the commencement date of this 3rd Modification of Lease
Agreement, this 3rd Modification of Lease Agreement shall be deemed
automatically canceled and of no force nor effect, without the necessity of any
written instrument evidencing the same, effective as of the date of such
cancellation of the Lease.

8.       The parties agree that, except as herein expressly provided, this 3rd
Modification of Lease Agreement and the Lease (as previously modified)
constitute the entire understanding between the parties with regard to the
aforementioned premises. This 3rd Modification of Lease Agreement may not be
changed orally, but only by an agreement in writing, signed by the party against
whom enforcement of any waiver, change, modification or

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<PAGE>

discharge is sought. This 3rd Modification of Lease Agreement shall not be
assignable by Tenant, except as specifically provided for in the Lease dated
December 12, 1998.

9.       Tenant agrees to accept said 3rd Additional Space in the condition in
which they exist on the commencement date of the 3rd Modification of Lease
Agreement. Tenant understands and agrees that no materials whatsoever are to be
furnished by Landlord and no work whatsoever is to be furnished by Landlord in
connection with the 3rd Additional Space or any part thereof.

10.      The terms, conditions, covenants, agreements and provisions contained
in this 3rd Modification of Lease Agreement shall bind and inure to the benefit
of the parties hereto and their respective legal representatives, successors
and, except as otherwise provided in the Lease, their respective assigns.

11.      Landlord and Tenant represent and warrant that it has dealt with no
broker except Olmstead Properties, Inc., and Julian J. Studley, Inc.
(collectively the "Broker") in connection with the execution of this 3rd
Modification of Lease Agreement or the showing of the 3rd Additional Space and
agrees to hold and save the other party harmless from and against any and all
liabilities from any claims of any broker (including, without limitation, the
cost of counsel fees in connection with the defense of any such claims other
than the Broker). Based upon such representation, Landlord agrees to pay Broker
a commission pursuant to a separate agreement between Landlord and Broker.

12.      Tenant agrees that any air conditioning installed shall be installed in
accordance with any applicable laws, rules and regulations. Tenant specifically
agrees that under no circumstances shall it install any air conditioning units
that extend beyond the building property line. Tenant further agrees that any
air conditioning installed shall be installed in such a manner as to prevent any
condensation waste or water from dripping outside the window. Failure to comply
with the above shall be deemed a material default under the terms of this
Agreement.

         In addition, Tenant agrees that if there currently exists any air
conditioning units that extend beyond the Building property line, Tenant shall
be fully responsible for any and all costs associated with the relocation of
said units to ensure that nothing is extending beyond the Building property
line. In the event Tenant fails to relocate any air conditioning units as
aforesaid, Landlord may relocate same for the accounts of and at the expense of
Tenant by payment or otherwise, without investigation as to the validity thereof
or any offsets or defenses thereto, and Tenant shall promptly reimburse Landlord
as Additional Rent for all costs, disbursements, fees and expenses including
without limitation, legal fees incurred in connection with the aforesaid.

So long as the Tenant shall have duly kept and performed all of the terms,
provisions, conditions, covenants, and agreements to be kept and performed by
Tenant under the lease, Tenant shall be permitted to use the air-conditioning
system presently contained in the Demised Premise, if any. Tenant covenants and
agrees to maintain such air conditioning system (or any air conditioning system
it may install subject to the terms and conditions of the Lease) in good and
proper working condition at all times during the term of the Lease at Tenant's
sole cost and expense. Tenant further covenants and agrees to furnish and
maintain at all times during the term of the Lease an air conditioning contract
with a reputable air conditioning maintenance contractor reasonably acceptable
to the Landlord. Title to any and all air conditioning systems shall be and
continue to remain with Landlord at all times. Tenant covenants and agrees to
pay for any and all water and electricity required in connection with such air
conditioning system.

13.      Landlord and Tenant agree that Article 83 of the Lease dated December
10, 1998 shall only be applicable for the 6th & 7th floors and shall not be
included for the purposes of the 2nd & 3rd Modification of Lease Agreement.

14.      Landlord acknowledges and agrees that Tenant's use of the 3rd
Additional Space shall be for biotechnology research. Tenant agrees that there
shall be no use of animal testing or that there will be any ventilation required
for the lab (other than HVAC ventilation). The build out and use of the 3rd
Additional Space will be similar to the lab(s) currently in use on the 7th floor
(facing west and south). Failure to comply with this Article 14 shall be deemed
a material default by Tenant, under the Lease as hereby modified.

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15.      As a material inducement for Landlord to enter into this Agreement,
Tenant agrees that it shall return the 3rd Additional Space to the condition it
was in upon the commencement date of this Agreement if requested by Landlord.
Tenant agrees that any and all air conditioning that it shall install in the 3rd
Additional Space shall return in the Demised Premises and become the property of
the Owner.

         IN WITNESS WHEREOF, the parties hereto have duly executed this 3rd
Modification of lease Agreement, as of the day and year first above written.

                                            180 VARICK STREET CORPORATION
                                            C/O OLMSTEAD PROPERTIES, INC.

                                            BY: ________________________________
                                                     Vice President

                                            IMCLONE SYSTEMS INCORPORATED

                                            BY: ________________________________

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EXHIBIT A

Floor plan of 3rd Additional Space

i

<PAGE>

ELECTRICAL RIDER

To be attached to and from a part of:

LEASE dated December 30, 2002 Premises Part 8ths floor Between 180 Varick
Street Corporation c/o Olmstead Properties, as Landlord and ImClone Systems
Incorporated, as Tenant

         At the commencement of the term hereof electric current shall be
supplied to Tenant at the demised premises in accordance with the provisions of
clause A or B or F of this Article, subject to the other terms and conditions of
this Article and lease. A. Submetering - if electric current be supplied by
Landlord, at Landlord's option, pursuant to this clause, Tenant covenants and
agrees to purchase the same from Landlord or Landlord's designated agent, at
charges, taxes, terms and rates set by Landlord from time to time but, except as
hereinafter set forth, not more than those specified in Service Classification
No. 4 on September 7, 1970, that being the date immediately prior to which the
rates of consolidated Edison Company of New York, Inc. were adjusted and
consolidated with respect to redistribution of electric current to commercial
buildings. Such charges, taxes, terms and rates may be revised by Landlord, at
its option, from time to time, in the same proportion as any increases after the
aforesaid date in the charges, taxes, terms or rates to Landlord in connection
with the supply of electric current to the building of which the demised
premises are a part (hereinafter referred to as the "building"). When more than
one meter measures the electrical service to the demised premises, the service
rendered through each meter shall be separately computed and billed in
accordance with the charges, taxes, terms and rates stated herein. Bills shall
be rendered at such times as Landlord may elect and, commencing on the earlier
of (i) Tenant's occupancy of all or any portion of the demised premises, or (ii)
the commencement date of the term of this lease, the amount as computed from
meter reading shall be deemed to be, and be paid as, additional rent without
set-off or deduction. B. Rent Inclusion - If electric current be supplied by
Landlord, at Landlord's option, pursuant to this clause, Tenant covenants and
agrees to have it supplied to Tenant a the demised premises based on the method
of including the use thereof within the annual rent and the annual rent reserved
herein shall be increased as hereinafter set forth, in consideration of Landlord
supplying electric current as an additional service as hereinafter provided. At
any time after Tenant is in possession of the demised premises, a reputable
electrical consultant selected by Landlord shall (but, if this lease be a
renewal or shall subsequently be extended, or if an electric rent inclusion
modification agreement is being executed in connection with this lease. Landlord
shall have the option, but not the obligation to) make a survey of the
electrical equipment, usage and powerload to ascertain the electric current
consumption and demand in the demised premises on an annual basis, and calculate
the annual rent increase resulting therefrom utilizing charges, taxes, term and
rates as set by Landlord from time to time, but, except as hereinafter set forth
not more than those specified in the Service Classification No. 2 on September
7, 1970, that being the date immediately prior to which the rates of
Consolidated Edison Company of New York, Inc. were adjusted and consolidated
with respect to redistribution of electric current to commercial buildings. Such
charges, taxes, terms and rates may be revised by Landlord, at its option, from
time to time, in the same proportion as any increases after the aforesaid date
in the charges, taxes, terms or rates to Landlord in connection with the supply
of electric current to the building. Following the making of any such survey,
the parties shall execute an agreement prepared by Landlord amending this lease
and setting forth the increase in annual rent calculated as aforesaid, as of the
date of the commencement of the furnishing of electric current to the demised
premises pursuant to this clause B, but such increase shall be effective from
that date even if such agreement is not executed. Landlord, its agent or
consultant, is given the right to make surveys, from time to time, in the
demised premises covering the electric equipment and use of electric current.
If, after the date of such initial survey (or if subdivision "(i)" or "(ii)"
above is applicable, after the date on which the annual rent payable by Tenant
was last increased in consideration of Landlord supplying electric to the
demised premises) there are any additions to or increases in (i) the equipment
or usage in the demised premises, or (ii) in the charges, terms and/or rate to
Landlord by the public utility corporation supplying electric current to the
building, or (iii) in any taxes thereon which Landlord is obligated to pay, or
(iv) if Tenant shall regularly remain open for business other than during those
hours incorporated in any prior electric survey, then, and in any such instance
or instances, the annual rent reserved therein shall be further increased in
accordance with the provisions of this Article to reflect such additions,
increases or additional use as of the effective date thereof. If Landlord and
Tenant cannot agree on the amount of any such increase, as hereinbefore
described, the same shall be determined by a reputable electric consultant
selected by Landlord and paid equally by both parties. The parties shall then
execute an agreement prepared by Landlord amending this lease and setting forth
the new annual rent resulting from such increase and confirming the effective
date thereof, but such increase shall be effective from such date even if such
agreement is not executed. C. Landlord shall not in any way be liable or
responsible to Tenant for any loss or damage or expense which Tenant may sustain
or incur if either the quantity or character of electric service is changed or
is no longer available or suitable for Tenant's requirements. Tenant's use of
electric current in the demised premises shall not at any time exceed the
capacity of any of the electrical conductors and facilities in or otherwise
serving the demised premises. In order to insure that such capacity is not
exceeded and to avert any possible adverse effect upon the building's electric
service. Tenant shall not, without Landlord's prior written consent in each
instance, connect any fixtures, appliances or equipment (other than a reasonable
number of table or floor lamps, typewriters and similar small office machines
using comparable electric current) to the building's electric distribution
system nor make any alteration or addition to the electric system of the demised
premises. Should Landlord grant such consent, all additional risers or other
equipment required thereof shall be provided by Landlord, and all costs and
expenses in connection therewith, including, without limitation, those for
filing and supervision, shall be paid by Tenant upon Landlord's demand, as
additional rent, without setoff or deduction. As a

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condition to granting such consent, Landlord may require Tenant to agree to an
increase in the annual rent by an amount which will reflect the value to Tenant
of the additional service to be furnished by Landlord, to wit: the potential
additional electrical current to be made available to Tenant based upon the
estimated initial total capacity of such additional risers or other equipment.
If Landlord and Tenant cannot agree on the amount of such annual rent increase,
the same shall be determined by a reputable electrical consultant to selected by
Landlord and paid equally by both parties. The parties shall then execute an
agreement prepared by Landlord amending this lease and setting forth the new
annual rent resulting from such increase and confirming the effective date
thereof, but such increase shall be effective from such date even if such
agreement is not executed. E. Landlord reserves the right to discontinue
furnishing electric current to Tenant in the demised premises at any time upon
not less than thirty (30) days' notice to Tenant. F. If Landlord, at Landlord's
option, (i) exercises such right of discontinuance as provided in clause E, or
(ii) requires Tenant to initially obtain its electric current directly from the
public utility corporation supplying electric current to the building, this
lease shall continue in full force and effect and shall be unaffected thereby,
except only that, from and after the effective date of such discontinuance, or
the commencement of direct usage, as the case may be. Landlord shall not be
obligated to furnish electric current to Tenant and except that, if Landlord
shall have been furnishing electric current on a rent inclusion basis, from and
after the effective date of such discontinuance, the annual rent payable under
this lease shall be reduced by an amount equal to the aggregate amount of all
increases of the annual rent reserved herein pursuant to clause B of this
Article. In either aforesaid event, if Landlord is not to furnish electric
current to Tenant, Tenant shall arrange to obtain electric current directly from
the public utility corporation supplying electric current to the building; and
in any event, all risers, equipment and other facilities which may be required
for Tenant to obtain electric current directly from such public utility
corporation shall, at Tenant's expense, payable to Landlord upon demand, as
additional rent, without set-off or deduction, be installed by Landlord, if in
Landlord's judgment the same are necessary and will not cause damage or injury
to the building or any part thereof or create a hazardous condition or entail
excessive alterations, repairs or expense interfere with or disturb any other
building tenants or occupants; and in any event, any such installation shall be
maintained by Tenant, at its expense, and shall be subject to such conditions as
Landlord and/or the public utility corporation may require. If Landlord shall
not furnish electric current to Tenant, it shall not be liable to Tenant
therefore and the same shall not be deemed to be a lessening or diminution of
services within the meaning of any law, rule or regulation now or hereafter
enacted, promulgated or issued. G. If any taxes or charges are or shall be
imposed upon Landlord or its agent in connection with the sale or resale of
electrical energy to Tenant, Tenant covenants and agrees that, where permitted
by law, Tenant's pro-rate share of such taxes or charges shall be passed on to
Tenant and paid by Tenant to Landlord or its agent upon demand, as additional
rent, without set-off or deduction. At all times during the term of this lease
Tenant will comply with all present and future General Rules, Regulations, Terms
and Conditions applicable to service equipment, wiring and Requirements in
accordance with the regulations of the public utility corporation supplying
electric current to the building. H. In the event that any increased or
additional rent under this Article is not paid within 30 days after a bill is
rendered, Landlord may, without further notice and without waiving its rights to
any other remedy or remedies it may have, discontinue the service of electric
current to the demised premises without releasing Tenant from any liability
under this lease and without Landlord or Landlord's agent incurring any
liability for any damage or loss sustained by Tenant by such discontinuance of
service. I. Tenant covenants and agrees that at no time will the connected
electrical load for any one full or partial floor of the demised premises exceed
6 watts per square foot of usable area unless the rent has been increased
pursuant to this Article to reflect the additional load. J. It is agreed that
Landlord, from time to time, may change the method of supplying electric current
to Tenant at the demised premises in any manner referred to in this lease or
otherwise, provided that in so doing Landlord shall comply with all applicable
laws. K. At the option of Landlord, Tenant agrees to purchase from Landlord, or
its agent, all lighting tubes, lamps, bulbs and ballasts used in the demised
premises and to pay the cost of Installation thereof all as additional rent
without set-off or deduction, upon rendition of bills therefor.

3<PAGE>
                                                                     EXHIBIT 4.1

                AMENDED AND RESTATED CERTIFICATE OF INCORPORATION
           FILED WITH THE SECRETARY OF STATE OF THE STATE OF DELAWARE
                      EFFECTIVE FILING DATE OF MAY 27, 2003

                             ROUGE INDUSTRIES, INC.
                AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

         ROUGE INDUSTRIES, INC. (the "Corporation") a corporation originally
incorporated under the name of Rouge Steel Holding Corporation on November 12,
1996 and organized and existing under and by virtue of the General Corporation
Law of the State of Delaware, DOES HEREBY CERTIFY:

         FIRST: That the Board of Directors of the Corporation adopted a
resolution proposing and declaring advisable that the Certificate of
Incorporation of the Corporation be amended and restated to read in its entirety
as set forth in paragraph FOURTH of this Amended and Restated Certificate of
Incorporation.

         SECOND: That by the required vote of the stockholders, the stockholders
of the Corporation approved the adoption of this Amended and Restated
Certificate of Incorporation.

         THIRD: That this Amended and Restated Certificate of Incorporation was
duly adopted in accordance with the provisions of Sections 242 and 245 of the
General Corporation Law of the State of Delaware.

         FOURTH: That the Certificate of Incorporation of the Corporation, as
amended and restated hereby, reads in its entirety as follows:

                                  ARTICLE FIRST

         The name of the Corporation is:

                             ROUGE INDUSTRIES, INC.

                                 ARTICLE SECOND

         The registered office of the Corporation shall be located at 2711
Centerville Road, Suite 400, in the City of Wilmington, County of New Castle,
State of Delaware. The name of its registered agent in charge thereof is
Corporation Service Company, 2711 Centerville Road, Suite 400, in the City of
Wilmington, County of New Castle, State of Delaware.

                                  ARTICLE THIRD

         The purpose of the corporation is to engage in any lawful act or
activity for which corporations may be organized under the General Corporation
Law of Delaware.

                                 ARTICLE FOURTH

         SECTION 1. The total authorized capital stock of the Corporation is
96,690,400 shares, consisting of 8,000,000 shares of Preferred Stock, $.01 par
value per share ("Preferred Stock"), and 88,690,400 shares of Common Stock, of
which 80,000,000 shares shall be Class A Common Stock, $.01 par value per share
("Class A Common Stock"), and 8,690,400 shares shall be Class B Common Stock,
$.01 par value per share ("Class B Common Stock").

         SECTION 2. The Board of Directors is authorized, subject to any
limitations prescribed by law, to provide for the issuance of 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,
powers, preferences and rights of the shares of each such series and any
qualifications, limitations or restrictions thereof.

<PAGE>
         SECTION 3. The Class A Common Stock and the Class B Common Stock shall
be identical in all respects and shall have equal rights and privileges, except
as otherwise provided in this Article FOURTH.

         SECTION 4. Subject to the express terms of any outstanding series of
Preferred Stock, dividends may be paid in cash or otherwise upon the Class A
Common Stock and the Class B Common Stock out of the assets of the Corporation
in the relationship and upon the terms provided for below with respect to each
such class:

         (1)      DIVIDENDS ON CLASS A COMMON STOCK.

         Dividends on Class A Common Stock may be declared and paid in cash or
         shares of Class A Common Stock only to the extent of the assets of the
         Corporation legally available therefor reduced by an amount equal to
         the paid in surplus attributable to the Class B Common Stock. Dividends
         declared and paid with respect to shares of Class A Common Stock and
         any adjustments to surplus resulting from either (i) the repurchase or
         issuance of any shares of Class A Common Stock or (ii) any other reason
         deemed appropriate by the Board of Directors shall be subtracted from
         or added to the amounts available for the payment of dividends on Class
         A Common Stock. Subject to the foregoing, the declaration and payment
         of dividends on the Class A Common Stock, and the amount thereof, shall
         at all times be solely in the discretion of the Board of Directors of
         the Corporation.

         (2)      DIVIDENDS ON CLASS B COMMON STOCK.

         Dividends on the Class B Common Stock may be declared and paid in cash
         or shares of Class A Common Stock only to the extent of the assets of
         the Corporation legally available therefor reduced by an amount equal
         to the paid in surplus attributable to the Class A Common Stock and
         only to the extent a dividend (equal to the per share dividend declared
         and paid to the holders of Class B Common Stock) is declared and paid
         on the Class A Common Stock. Dividends declared and paid with respect
         to shares of Class B Common Stock and any adjustments to surplus
         resulting from either (i) the repurchase of any shares of Class B
         Common Stock or (ii) any other reason deemed appropriate by the Board
         of Directors shall be subtracted from or added to the amounts available
         for the payment of dividends on Class B Common Stock. Subject to the
         foregoing, the declaration and payment of dividends on the Class B
         Common Stock, and the amount thereof, shall at all times be solely in
         the discretion of the Board of Directors of the Corporation.

         SECTION 5. The holders of Class A Common Stock and Class B Common Stock
shall vote together, with any other class or series of capital stock of the
Corporation entitled to vote therewith, as a single class on all matters;
provided, however, that, in addition to any other vote required, (i) any
amendment, alteration or repeal of any of the provisions of this Amended and
Restated Certificate of Incorporation which adversely affects the rights, powers
or privileges of the Class A Common Stock shall be subject to approval by both
(A) the holders of a majority of the shares of Class A Common Stock and Class B
Common Stock then outstanding, voting together, with any other class or series
of capital stock of the Corporation entitled to vote therewith, as a single
class based upon their respective voting rights, and (B) the holders of a
majority of the shares of Class A Common Stock then outstanding, voting
separately as a class; (ii) the holders of Class B Common Stock voting
separately as a class shall be entitled to approve by the vote of a majority of
the shares of Class B Common Stock then outstanding any amendment, alteration or
repeal of any of the provisions of this Amended and Restated Certificate of
Incorporation which adversely affects the rights, powers or privileges of the
Class B Common Stock; (iii) any increase in the number of authorized shares of
Class B Common Stock shall be subject to approval by both (A) the holders of a
majority of the shares of Class A Common Stock and Class B Common Stock then
outstanding, voting together, with any other class or series of capital stock of
the Corporation entitled to vote therewith, as a single class based upon their
respective voting rights, and (B) the holders of a majority of the shares of
Class B Common Stock then outstanding, voting separately as a class. Holders of
Class A Common Stock or Class B Common Stock may not act by written consent in
lieu of a meeting. Subject to adjustment pursuant to Section 10 of this Article
Fourth, each holder of Class A Common Stock shall be entitled to one vote, in
person or by proxy, for each share of Class A Common Stock outstanding in his
name on the stock transfer books of the Corporation and each holder of Class B
Common Stock shall be entitled to 2.5 votes, in person or by proxy, for each
share of Class B Common Stock outstanding in his name on the stock transfer
books of the Corporation.

         SECTION 6. The affirmative vote of the holders of at least 66 2/3
percent of the combined voting power of the then outstanding shares of stock of
all classes and series of the Corporation entitled to vote generally in

<PAGE>
the election of directors ("Voting Stock"), voting together as a single class,
shall be required to approve, adopt or authorize any of the following actions:

                  (i) a merger or consolidation of the Corporation with or into
         another person or entity;

                  (ii) any sale, lease, exchange, mortgage, pledge, transfer,
         dividend or distribution or other disposition (in one transaction or a
         series of transactions) to or with any entity or person of all or
         substantially all the assets of the Corporation or of any Subsidiary
         (as defined in Section 7);

                  (iii) the adoption of any plan or proposal for the liquidation
         or dissolution of the Corporation;

                  (iv) any reclassification of securities (including any reverse
         stock split), or recapitalization of the Corporation, or any merger or
         consolidation of the Corporation with any of its Subsidiaries, or any
         other transaction, that in any such case has the effect, directly or
         indirectly, of increasing the proportionate share of the outstanding
         shares of any class or series of stock or of securities convertible
         into stock of the Corporation or any Subsidiary that is directly or
         indirectly beneficially owned by any person or entity;

                  (v) any series or combination of transactions directly or
         indirectly having the same effect as any of the foregoing; or

                  (vi) any agreement, contract or other arrangement providing
         directly or indirectly for any of the foregoing.

         SECTION 7. Notwithstanding any other provisions of this Amended and
Restated Certificate of Incorporation, the vote of stockholders of the
Corporation required to approve any Business Combination (as hereinafter
defined) shall be as set forth in this Section 7.

                  (i) In addition to any affirmative vote required by law or by
         this Amended and Restated Certificate of Incorporation or any
         resolution or resolutions of the Board of Directors adopted pursuant to
         Article Seventh of this Amended and Restated Certificate of
         Incorporation, and except as otherwise expressly provided in clause
         (iii) of this Section 7:

                           (a) any merger or consolidation of the Corporation
                  with (1) any Interested Stockholder or (2) any other entity
                  (whether or not itself an Interested Stockholder) that is, or
                  after such merger or consolidation would be, an Affiliate or
                  Associate of an Interested Stockholder; or

                           (b) the adoption of any plan or proposal for the
                  liquidation or dissolution of the Corporation proposed by or
                  on behalf of any Interested Stockholder or any Affiliate or
                  Associate of any Interested Stockholder; or

                           (c) any reclassification of securities (including any
                  reverse stock split), or recapitalization of the Corporation,
                  or any merger or consolidation of the Corporation with any of
                  its Subsidiaries, or any other transaction (whether or not
                  with or into or otherwise involving any Interested
                  Stockholder), that in any such case has the effect, directly
                  or indirectly, of increasing the proportionate share of the
                  outstanding shares of any class or series of stock or
                  securities convertible into stock of the Corporation or any
                  Subsidiary that is directly or indirectly beneficially owned
                  by any Interested Stockholder or any Affiliate or Associate of
                  any Interested Stockholder; or

                           (d) any series or combination of transactions
                  directly or indirectly having the same effect as any of the
                  foregoing; or

                           (e) any agreement, contract or other arrangement
                  providing directly or indirectly for any of the foregoing;

shall not be consummated without the affirmative vote of the holders of at least
80 percent of the combined voting power of the then outstanding Voting Stock (as
defined above in Section 6), voting together as a single class. Such

<PAGE>
affirmative vote shall be required notwithstanding the fact that no vote may be
required, or that a lesser percentage may be specified, by law or by this
Amended and Restated Certificate of Incorporation or any resolution or
resolutions of the Board of Directors adopted pursuant to Article Seventh of
this Amended and Restated Certificate of Incorporation or in any agreement with
any national securities exchange or otherwise.

                  (ii) The term "Business Combination" as used in this Section 7
         shall mean any transaction that is referred to in any one or more of
         paragraphs (a) through (e) of clause (i) of this Section 7.

                  (iii) The provisions of clause (i) of this Section 7 shall not
         be applicable to any particular Business Combination, and such Business
         Combination shall require only such affirmative vote as is required by
         law and any other provision of this Amended and Restated Certificate of
         Incorporation and any resolution or resolutions of the Board of
         Directors adopted pursuant to Article Seventh of this Amended and
         Restated Certificate of Incorporation, if all the conditions specified
         in either of the following paragraphs (a) or (b) are met:

                           (a) such Business Combination shall have been
                  approved by a majority of the Disinterested Directors; or

                           (b) all of the six conditions specified in the
                  following clauses (1) through (6) shall have been met:

                                    (1) the transaction constituting the
                           Business Combination shall provide for a
                           consideration to be received by holders of Common
                           Stock in exchange for all their shares of Common
                           Stock, and the aggregate amount of the cash and the
                           Fair Market Value as of the date of the consummation
                           of the Business Combination of any consideration
                           other than cash to be received per share by holders
                           of Common Stock in such Business Combination shall be
                           at least equal to the higher of the following:

                                            (A) (if applicable) the highest per
                                    share price (including any brokerage
                                    commissions, transfer taxes and soliciting
                                    dealers' fees) paid in order to acquire any
                                    shares of Common Stock beneficially owned by
                                    the Interested Stockholder that were
                                    acquired (I) within the two-year period
                                    immediately prior to the Announcement Date
                                    or (II) in the transaction in which it
                                    became an Interested Stockholder, whichever
                                    is higher; and

                                             (B) the Fair Market Value per share
                                    of Common Stock on the Announcement Date or
                                    on the Determination Date, whichever is
                                    higher; and

                                    (2) the transaction constituting the
                           Business Combination shall provide for a
                           consideration to be received by holders of any class
                           or series of outstanding Voting Stock other than
                           Common Stock in exchange for all their shares of such
                           Voting Stock, and the aggregate amount of the cash
                           and the Fair Market Value as of the date of the
                           consummation of the Business Combination of any
                           consideration other than cash to be received per
                           share by holders of shares of such Voting Stock in
                           such Business Combination shall be at least equal to
                           the highest of the following (it being intended that
                           the requirements of this paragraph (b)(2) shall be
                           required to be met with respect to every class and
                           series of such outstanding Voting Stock, whether or
                           not the Interested Stockholder beneficially owns any
                           shares of a particular class or series of Voting
                           Stock):

                                            (A) (if applicable) the highest per
                                    share price (including any brokerage
                                    commissions, transfer taxes and soliciting
                                    dealers' fees) paid in order to acquire any
                                    share of such class or series of Voting
                                    Stock beneficially owned by the Interested
                                    Stockholder that were acquired (I) within
                                    the two-year period immediately prior to the
                                    Announcement Date or (II) in the transaction
                                    in which it became an Interested
                                    Stockholder, whichever is higher;

                                            (B) (if applicable) the highest
                                    preferential amount per share to which the
                                    holders of shares of such class or series of
                                    Voting Stock are entitled in

<PAGE>
                                    the event of any voluntary or involuntary
                                    liquidation, dissolution or winding up of
                                    the Corporation; and

                                            (C) the Fair Market Value per share
                                    of such class or series of Voting Stock on
                                    the Announcement Date or on the
                                    Determination Date, whichever is higher; and

                                    (3) the consideration to be received by
                           holders of a particular class or series of
                           outstanding Voting Stock (including Common Stock)
                           shall be in cash or in the same form as was
                           previously paid in order to acquire shares of such
                           class or series of Voting Stock that are beneficially
                           owned by the Interested Stockholder, and if the
                           Interested Stockholder beneficially owns shares of
                           any class or series of Voting Stock that were
                           acquired with varying forms of consideration, the
                           form of consideration to be received by holders of
                           such class or series of Voting Stock shall be either
                           cash or the form used to acquire the largest number
                           of shares of such class or series of Voting Stock
                           beneficially owned by it; and

                                    (4) after such Interested Stockholder has
                           become an Interested Stockholder and prior to the
                           consummation of such Business Combination:

                                            (A) within the two years prior to
                                    the Announcement Date except as approved by
                                    a majority of the Disinterested Directors,
                                    there shall have been no failure to declare
                                    and pay at the regular dates therefor the
                                    full amount of any dividends (whether or not
                                    cumulative) payable on the outstanding
                                    Preferred Stock or class or series of stock
                                    having a preference over the Common Stock as
                                    to dividends or upon liquidation;

                                            (B) within the two years prior to
                                    the Announcement Date there shall have been
                                    (I) no reduction in the annual rate of
                                    dividends paid on the Common Stock (except
                                    as necessary to reflect any subdivision of
                                    the Common Stock), except as approved by a
                                    majority of the Disinterested Directors, and
                                    (II) an increase in such annual rate of
                                    dividends (as necessary to prevent any such
                                    reduction) in the event of any
                                    reclassification (including any reverse
                                    stock split), recapitalization,
                                    reorganization or any similar transaction
                                    that has the effect of reducing the number
                                    of outstanding shares of the Common Stock,
                                    unless the failure so to increase such
                                    annual rate is approved by a majority of the
                                    Disinterested Directors; and

                                            (C) such Interested Stockholder
                                    shall not have become the beneficial owner
                                    of any additional shares of Voting Stock
                                    except as part of the transaction that
                                    resulted in such Interested Stockholder
                                    becoming an Interested Stockholder; and

                                    (5) after such Interested Stockholder has
                           become an Interested Stockholder, such Interested
                           Stockholder shall not have received the benefit,
                           directly or indirectly (except proportionately as a
                           stockholder and except in the ordinary course of
                           business or as part of a supplier/customer
                           relationship), of any loans, advances, guarantees,
                           pledges or other financial assistance or any tax
                           credits or other tax advantages provided by the
                           Corporation, whether in anticipation of or in
                           connection with such Business Combination or
                           otherwise; and

                                    (6) a proxy or information statement
                           describing the proposed Business Combination and
                           complying with the requirements of the Securities
                           Exchange Act of 1934 and the rules and regulations
                           thereunder (or any subsequent provisions replacing
                           such Act, rules or regulations) shall be mailed to
                           public stockholders of the Corporation at least 30
                           days prior to the consummation of such Business
                           Combination (whether or not such proxy or information
                           statement is required to be mailed pursuant to such
                           Act or subsequent provisions).

<PAGE>
                  (iv) For purposes of this Section 7:

                           (a) A "person" shall mean any individual, firm,
                  corporation, partnership, trust or other entity.

                           (b) "Interested Stockholder" shall mean any person
                  (other than the Corporation or any Subsidiary) who or that:

                                    (1) is the beneficial owner, directly or
                           indirectly, of twenty percent or more of the combined
                           voting power of the then outstanding Voting Stock; or

                                    (2) is an Affiliate of the Corporation and
                           at any time within the two-year period immediately
                           prior to the date in question was the beneficial
                           owner, directly or indirectly, of twenty percent or
                           more of the combined voting power of the then
                           outstanding Voting Stock; or

                                    (3) is an assignee of or has otherwise
                           succeeded to the beneficial ownership of any shares
                           of Voting Stock that were at any time within the
                           two-year period immediately prior to the date in
                           question beneficially owned by an Interested
                           Stockholder, if such assignment or succession shall
                           have occurred in the course of a transaction or
                           series of transactions not involving a public
                           offering within the meaning of the Securities Act of
                           1933.

                           (c) A person shall be a "beneficial owner" of any
                  Voting Stock:

                                    (1) that such person or any of its
                           Affiliates or Associates beneficially owns, directly
                           or indirectly; or

                                    (2) that such person or any of its
                           Affiliates or Associates has (A) the right to acquire
                           (whether such right is exercisable immediately or
                           only after the passage of time), pursuant to any
                           agreement, arrangement or understanding or upon the
                           exercise of conversion rights, exchange rights,
                           warrants or options, or otherwise, or (B) the right
                           to vote or to direct the vote pursuant to any
                           agreement, arrangement or understanding; or

                                    (3) that is beneficially owned, directly or
                           indirectly, by any other person with which such
                           person or any of its Affiliates or Associates has any
                           agreement, arrangement or understanding for the
                           purposes of acquiring, holding, voting or disposing
                           of any shares of Voting Stock, but excluding any such
                           agreement, arrangement or understanding existing on
                           the effective date of this Amended and Restated
                           Certificate of Incorporation and as to which the
                           Corporation is a party.

                           (d) For the purposes of determining whether a person
                  is an Interested Stockholder pursuant to paragraph (b) of this
                  clause (iv), the number of shares of Voting Stock deemed to be
                  outstanding shall include all shares deemed owned by such
                  person through application of paragraph (c) of this clause
                  (iv) but shall not include any other shares of Voting Stock
                  that may be issuable to other persons upon exercise of
                  conversion rights, exchange rights, warrants or options, or
                  otherwise.

                           (e) "Affiliate" and "Associate" shall have the
                  respective meanings ascribed to such terms in Rule 12b-2 of
                  the General Rules and Regulations under the Securities
                  Exchange Act of 1934, as in effect on January 1, 1994.

                           (f) "Subsidiary" shall mean any corporation a
                  majority of whose outstanding stock having ordinary voting
                  power in the election of directors is owned by the
                  Corporation, by a Subsidiary or by the Corporation and one of
                  more Subsidiaries; provided, however, that for the purposes of
                  the definition of Interested Stockholder set forth in
                  paragraph (b) of this clause (iv), the term "Subsidiary" shall
                  mean only a corporation of which a majority of each class of
                  equity

<PAGE>
                  security is owned by the Corporation, by a Subsidiary or by
                  the Corporation and one or more Subsidiaries.

                           (g) "Disinterested Director" means any member of the
                  Board of Directors of the Corporation who is not an employee
                  of the Corporation.

                           (h) "Fair Market Value" means: (1) in the case of
                  stock, the highest closing sale price during the 30-day period
                  immediately preceding the date in question of a share of such
                  stock on the New York Stock Exchange Composite Tape, or, if
                  such stock is not quoted on the Composite Tape, on the New
                  York Stock Exchange, or, if such stock is not listed on such
                  Exchange, on the principal United States national securities
                  exchange registered under the Securities Exchange Act of 1934
                  on which such stock is listed, or, if such stock is not listed
                  on any such exchange, the highest closing sale price or bid
                  quotation with respect to a share of such stock during the
                  30-day period immediately preceding the date in question on
                  the National Association of Securities Dealers, Inc. Automated
                  Quotations System or any system then in use, or, if no such
                  prices or quotations are available, the fair market value on
                  the date in question of a share of such stock as determined by
                  a majority of the Disinterested Directors in good faith; and
                  (2) in the case of property other than cash or stock, the fair
                  market value of such property on the date in question as
                  determined by a majority of the Disinterested Directors in
                  good faith.

                           (i) "Announcement Date" means the date of first
                  public announcement of the proposal of the Business
                  Combination.

                           (j) "Determination Date" means the date on which the
                  Interested Stockholder became an Interested Stockholder.

                  (v) A majority of the Disinterested Directors of the
         Corporation shall have the power and duty to determine, on the basis of
         information known to them after reasonable inquiry, all facts necessary
         to determine compliance with this Section 7, including, without
         limitation, (a) whether a person is an Interested Stockholder, (b) the
         number of shares of Voting Stock beneficially owned by any person, (c)
         whether a person is an Affiliate or Associate of another person and (d)
         whether the requirements of clause (iii) of this Section 7 have been
         met with respect to any Business Combination; and the good faith
         determination of a majority of the Disinterested Directors on such
         matters shall be conclusive and binding for all purposes of this
         Section 7.

         SECTION 8. CONVERSION OF CLASS B COMMON STOCK.

                  (i) All or any of the shares of Class B Common Stock may be
         converted, at any time or from time to time in the discretion of the
         holders thereof into fully paid and nonassessable shares of Class A
         Common Stock in accordance with the Conversion Rate (as defined below).

                  (ii) Upon the death or permanent disability (as defined in the
         manner set forth below) of Carl L. Valdiserri, all shares of Class B
         Common Stock owned by any holder of shares of Class B Common Stock who
         has consented in writing to the conversion of such shares of Class B
         Common Stock pursuant to this Section 8(ii) shall be converted
         automatically into fully paid and nonassessable shares of Class A
         Common Stock in accordance with the Conversion Rate.

                  (iii) Upon the Transfer (as defined below) of any shares of
         Class B Common Stock, such shares of Class B Common Stock shall be
         converted automatically into fully paid and nonassessable shares of
         Class A Common Stock in accordance with the Conversion Rate.

                  (iv) For purposes of this Section 8:

                           (a) "Conversion Rate" shall mean the number of shares
                  of Class A Common Stock into which each share of Class B
                  Common Stock shall be converted pursuant to this Section 8
                  determined as follows: Each share of Class B Common Stock
                  shall be converted into one share of Class A Common Stock.

<PAGE>
                           (b) "Designated Transferee" means: (A) members of
                  Carl L. Valdiserri's immediate family (including parents,
                  siblings, spouse and children, whether by birth or by
                  adoption); (B) any one or more charitable or other trusts
                  which are established in connection with the estate planning
                  of Carl L. Valdiserri or in connection with Carl L.
                  Valdiserri's estate, in each case where the beneficiaries of
                  such trusts are the beneficiaries of Carl L. Valdiserri's
                  estate; (C) any one or more trusts for the sole benefit of
                  Carl L. Valdiserri or one or more of the persons referred to
                  in clause (A) of this definition; (D) any corporation all of
                  whose issued and outstanding voting capital stock is held
                  legally and beneficially and of record by Carl L. Valdiserri;
                  provided that in each case (i) Carl L. Valdiserri retains sole
                  voting power with respect to the Class B Common Stock held by
                  any person or entity referred to in clause (1) (A), (B), (C)
                  or (D) of this definition and (ii) the person or entity
                  referred to in clause (1) (A), (B), (C) or (D) of this
                  definition consents to the conversion of any Class B Common
                  Stock held by them pursuant to and upon the occurrence of the
                  events defined in Section 8 (ii) of this Article.

                           (c) "Affiliate" shall mean, as to any person, any
                  other person that directly or indirectly controls, or is under
                  common control with, or is controlled by, such person, and if
                  such person is an individual, any member of the immediate
                  family (including parents, siblings, spouse and children,
                  whether by birth or by adoption) of such individual and any
                  trust whose principal beneficiary is such individual or one or
                  more members of such immediate family and any person who is
                  controlled by any such member or trust. As used in this
                  definition, "control" (including, with its correlative
                  meanings, "controlled by" and "under common control with")
                  shall mean possession, directly or indirectly, of power to
                  direct or cause the direction of management or policies
                  (whether through ownership of securities or partnership or
                  other ownership interests, by contract or otherwise).

                           (d) "Transfer" shall mean the conveyance, sale,
                  lease, assignment, granting of any lien on or other transfer
                  or disposition of any share of capital stock of the
                  Corporation (or any legal or beneficial interest therein), in
                  each case other than to a Designated Transferee; provided,
                  however, that a pledge of capital stock shall not be deemed a
                  "Transfer" hereunder if the pledgor retains beneficial
                  ownership of the stock and Carl L. Valdiserri retains sole
                  voting power with respect to the stock, but any Transfer by
                  the pledgee shall be deemed a Transfer within the meaning of
                  this Section 8. Any shares of capital stock of the Corporation
                  held by a Designated Transferee that ceases to meet the
                  definition of Designated Transferee set forth in paragraph (b)
                  above shall be deemed to be the subject of a Transfer within
                  the meaning of this Section 8 on the date such stockholder
                  ceases to meet the definition of Designated Transferee.

                           (e) A determination of permanent disability of Carl
                  L. Valdiserri shall be established upon (1) any final judicial
                  determination of the permanent disability or incapacity of
                  Carl L. Valdiserri, (2) the delivery to the Corporation of a
                  certificate of a qualified medical doctor, selected by the
                  Board of Directors of the Corporation for such purpose, to the
                  effect that Carl L. Valdiserri is unable to perform such
                  duties of his office because of a permanent physical or mental
                  incapacity or (3) any failure by Carl L. Valdiserri to make
                  himself reasonably available for an examination by such
                  medical doctor.

                  (v) No fraction of a share of Class A Common Stock shall be
         issued in connection with the conversion of shares of Class B Common
         Stock into Class A Common Stock, but in lieu thereof, each holder of
         Class B Common Stock who would otherwise be entitled to a fractional
         interest of a share of Class A Common Stock shall receive a cash
         payment (without interest) (the "Fractional Payment") equal to the
         product of (A) the fraction of a share of Class A Common Stock to which
         such holder would otherwise have been entitled and (B) the Average
         Market Price Per Share of the Class A Common Stock on the Conversion
         Date (as defined below).

                  (vi) No adjustments in respect of dividends shall be made upon
         the conversion of any shares of Class B Common Stock; provided,
         however, that if the Conversion Date with respect to Class B Common
         Stock shall be subsequent to the record date for the payment of a
         dividend or other distribution thereon or with respect thereto but
         prior to the payment or distribution thereof, the registered holders of
         such shares at the close of business on such record date shall be
         entitled to receive the dividend or other distribution payable on such
         shares on the date set for payment of such dividend or other
         distribution

<PAGE>
         notwithstanding the conversion of such shares or the Corporation's
         default in payment of the dividend or distribution due on such date.

                  (vii) At such time or times as any holder of Class B Common
         Stock exercises the right to cause all or any of the shares of Class B
         Common Stock to be converted into Class A Common Stock in accordance
         with clause (i) of this Section 8, such holder shall give notice of
         such conversion to the Corporation, Attention: Secretary, by mailing by
         first-class mail a notice of such conversion (the "Conversion Notice"),
         not less than ten (10) nor more than thirty (30) days prior to the date
         fixed for such conversion (the "Conversion Date").

                  (viii) Before any holder of Class B Common Stock shall be
         entitled to receive certificates representing such shares of Class A
         Common Stock upon conversion of shares of Class B Common Stock as
         provided in this Section 8, such holder shall surrender to the
         Corporation certificates for such shares of Class B Common Stock, duly
         endorsed to the Corporation or in blank or accompanied by proper
         instruments of transfer to the Corporation or in blank, unless the
         Corporation shall waive such requirement. The Corporation will, as soon
         as practicable after such surrender of certificates representing such
         shares of Class B Common Stock issue and deliver at the office of the
         transfer agent representing the Class A Common Stock to Carl L.
         Valdiserri or any Designated Transferee, or to their nominee or
         nominees, certificates representing the number of shares of Class A
         Common Stock to which Carl L. Valdiserri or any Designated Transferee
         shall be entitled as aforesaid.

                  (ix) From and after any applicable Conversion Date or any
         automatic conversion described above, all rights of a holder of shares
         of Class B Common Stock which were converted into shares of Class A
         Common Stock shall cease except for (a) the right to receive
         certificates representing shares of Class A Common Stock as
         contemplated by clauses (i), (ii) and (iii) of this Section 8, (b) the
         right to receive any Fractional Payment as contemplated by clause (v)
         of this Section 8 and (c) the right to dividends as provided in clause
         (vi) of this Section 8.

                  (x) At such time as any Conversion Notice is delivered with
         respect to any shares of Class B Common Stock, or at the time of the
         Conversion Date, if earlier, the Corporation shall have reserved and
         kept available, solely for the purpose of issuance upon conversion of
         the outstanding shares of Class B Common Stock, such number of shares
         of Class A Common Stock as shall be issuable upon the automatic
         conversion of the number of shares of Class B Common Stock provided for
         in clause (ii) or (iii) of this Section 8 or to be specified in the
         applicable Conversion Notice, provided, that nothing contained herein
         shall be construed to preclude the Corporation from satisfying its
         obligations in respect of the conversion of the outstanding shares of
         Class B Common Stock, by delivery of purchased shares of Class A Common
         Stock which are held in the treasury of the Corporation.

                  (xi) The Conversion Rate shall be subject to adjustment from
         time to time as follows:

                           (a) In case the Corporation shall (1) pay a dividend
                  or make a distribution on its Class A Common Stock that is
                  paid or made (A) in other shares of stock of the Corporation
                  or (B) in rights to purchase stock or other securities if such
                  rights are not separable from the Class A Common Stock except
                  upon the occurrence of a contingency, (2) subdivide its
                  outstanding shares of Class A Common Stock into a greater
                  number of shares or (3) combine its outstanding shares of
                  Class A Common Stock into a smaller number of shares, then in
                  each such case the Conversion Rate in effect immediately prior
                  thereto shall be adjusted retroactively so that the holder of
                  any shares of Class B Common Stock thereafter surrendered for
                  conversion shall be entitled to receive the number of shares
                  of Class A Common Stock of the Corporation and other shares
                  and rights to purchase stock or other securities (or, in the
                  event of the redemption of any such shares or rights, any
                  cash, property or securities paid in respect of such
                  redemption) which such holder would have owned or have been
                  entitled to receive after the happening of any of the events
                  described above had such shares of Class B Common Stock been
                  converted immediately prior to the happening of such event. An
                  adjustment made pursuant to this subparagraph (a) shall become
                  effective immediately after the record date in the case of a
                  dividend or distribution and shall become effective
                  immediately after the effective date in the case of a
                  subdivision or combination.

<PAGE>
                           (b) In case the Corporation shall issue rights or
                  warrants to all holders of its Class A Common Stock entitling
                  them (for a period expiring within 45 days after the date
                  fixed for determination mentioned below) to subscribe for or
                  purchase shares of Class A Common Stock at a price per share
                  less than the current market price per share (determined as
                  provided below) of the Class A Common Stock on the date fixed
                  for the determination of stockholders entitled to receive such
                  rights or warrants, then the Conversion Rate in effect at the
                  opening of business on the day following the date fixed for
                  such determination shall be increased by multiplying such
                  Conversion Rate by a fraction of which the numerator shall be
                  the number of shares of Class A Common Stock outstanding at
                  the close of business on the date fixed for such determination
                  plus the number of shares of Class A Common Stock so offered
                  for subscription or purchase and the denominator shall be the
                  number of shares of Class A Common Stock outstanding at the
                  close of business on the date fixed for such determination
                  plus the number of shares of Class A Common Stock that the
                  aggregate of the offering price of the total number of shares
                  of Class A Common Stock so offered for subscription or
                  purchase would purchase at such current market price, such
                  increase to become effective immediately after the opening of
                  business on the day following the date fixed for such
                  determination; provided, however, in the event that all the
                  shares of Class A 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 Rate shall be readjusted to the Conversion Rate
                  that 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 Class
                  A Common Stock actually delivered upon the exercise of such
                  rights or warrants, rather than upon the number of shares of
                  Class A Common Stock offered for subscription or purchase. For
                  the purposes of this subparagraph (b), the number of shares of
                  Class A Common Stock at any time outstanding shall not include
                  shares held in the treasury of the Corporation.

                           (c) In case the Corporation shall, by dividend or
                  otherwise, distribute to all holders of its Class A Common
                  Stock evidences of its indebtedness, cash (excluding ordinary
                  cash dividends paid out of retained earnings of the
                  Corporation), other assets or rights or warrants to subscribe
                  for or purchase any security (excluding those referred to in
                  subparagraphs (a) and (b) above), then in each such case the
                  Conversion Rate shall be adjusted retroactively so that the
                  same shall equal the rate determined by multiplying the
                  Conversion Rate in effect immediately prior to the close of
                  business on the date fixed for the determination of
                  stockholders entitled to receive such distribution by a
                  fraction of which the numerator shall be the current market
                  price per share (determined as provided below) of the Class A
                  Common Stock on the date fixed for such determination and the
                  denominator shall be such current market price per share of
                  the Class A Common Stock less the amount of cash and the then
                  fair market value (as determined by the Board of Directors,
                  whose determination shall be conclusive and described in a
                  resolution of the Board of Directors) of the portion of the
                  assets, rights or evidences of indebtedness so distributed
                  applicable to one share of Class A Common Stock, such
                  adjustment to become effective immediately prior to the
                  opening of business on the day following the date fixed for
                  the determination of stockholders entitled to receive such
                  distribution.

                           (d) For the purpose of any computation under
                  subparagraphs (b) and (c), the current market price per share
                  of Class A Common Stock on any date shall be deemed to be the
                  average of the daily closing prices for the 20 consecutive
                  trading days commencing with the 30th trading day before the
                  day in question. The closing price for each day shall be the
                  reported last sales price regular way or, in case no such
                  reported sale takes place on such day, the average of the
                  reported closing bid and asked prices regular way, in either
                  case on the New York Stock Exchange or, if the Class A Common
                  Stock is not listed or admitted to trading on such Exchange,
                  on the principal national securities exchange on which the
                  Class A Common Stock is listed or admitted to trading (based
                  on the aggregate dollar value of all securities listed or
                  admitted to trading) or, if not listed or admitted to trading
                  on any national securities exchange, in the NASDAQ National
                  Market System or, if the Class A Common Stock is not listed or
                  admitted to trading on any national securities exchange or
                  quoted in the NASDAQ National Market System, the average of
                  the closing bid and asked prices in the over-the-counter
                  market as furnished by any New York Stock Exchange member firm
                  selected from time to time by the Corporation for that
                  purpose, or, if such prices are not available, the fair market
                  value set by, or in a manner established by, the Board of

<PAGE>
                  Directors of the Corporation in good faith. "Trading day"
                  shall mean a day on which the national securities exchange or
                  the NASDAQ National Market System used to determine the
                  closing price is open for the transaction of business or the
                  reporting of trades or, if the closing price is not so
                  determined, a day on which the New York Stock Exchange is open
                  for the transaction of business.

                           (e) No adjustment in the Conversion Rate shall be
                  required unless such adjustment would require an increase or
                  decrease of at least one percent (1%) in such rate; provided,
                  however, that the Corporation may make any such adjustment at
                  its election; and provided further, however, that any
                  adjustments which by reason of this subparagraph (e) are not
                  required to be made shall be carried forward and taken into
                  account in any subsequent adjustment. All calculations under
                  this clause (xi) shall be made to the nearest cent or to the
                  nearest one-hundredth of a share, as the case may be.

                           (f) Whenever the Conversion Rate is adjusted as
                  provided in any provision of this clause (xi):

                                    (1) the Corporation shall compute the
                           adjusted Conversion Rate in accordance with this
                           clause (xi) and shall prepare a certificate signed by
                           the principal financial officer of the Corporation
                           setting forth the adjusted Conversion Rate and
                           showing in reasonable detail the facts upon which
                           such adjustment is based, and such certificate shall
                           forthwith be filed with the transfer agent for the
                           Class B Common Stock; and

                                    (2) a notice stating that the Conversion
                           Rate has been adjusted and setting forth the adjusted
                           conversion rate shall forthwith be required, and as
                           soon as practicable after it is required, such notice
                           shall be mailed by the Corporation to each holder of
                           record of Class B Common Stock at such holder's
                           address as it shall appear upon the stock transfer
                           books of the Corporation.

                           (g) In the event that at any time, as a result of any
                  adjustment made pursuant to this clause (xi), the holder of
                  any shares of Class B Common Stock thereafter surrendered for
                  conversion shall become entitled to receive any shares of the
                  Corporation other than shares of Class A Common Stock or to
                  receive any other securities, the number of such other shares
                  or securities so receivable upon conversion of any share of
                  Class B Common Stock shall be subject to adjustment from time
                  to time in a manner and on terms as nearly equivalent as
                  practicable to the provisions contained in this clause (xi)
                  with respect to the Class A Common Stock.

                  (xii) In case of any reclassification of the Class A Common
         Stock, any consolidation of the Corporation with, or merger of the
         Corporation into, any other person, any merger of another person into
         the Corporation (other than a merger that does not result in any
         reclassification, conversion, exchange or cancellation of outstanding
         shares of Class A Common Stock), any sale or transfer of all or
         substantially all of the assets of the Corporation or any compulsory
         share exchange, pursuant to which share exchange the Class A Common
         Stock is converted into other securities, cash or other property, then
         lawful provision shall be made as part of the terms of such transaction
         whereby the holder of each share of Class B Common Stock then
         outstanding shall have the right thereafter, during the period such
         share shall be convertible, to convert such share only into the kind
         and amount of securities, cash and other property receivable upon such
         reclassification, consolidation, merger, sale, transfer or share
         exchange by a holder of the number of shares of Class A Common Stock of
         the Corporation into which such share of Class B Common Stock might
         have been converted immediately prior to such reclassification,
         consolidation, merger, sale, transfer or share exchange. The
         Corporation, the person formed by such consolidation or resulting from
         such merger or that acquires such assets or that acquires the
         Corporation's shares, as the case may be, shall make provisions in its
         certificate or articles of incorporation or other constituent document
         to establish such right. Such certificate or articles of incorporation
         or other constituent document shall provide for adjustments which, for
         events subsequent to the effective date of such certificate or articles
         of incorporation or other constituent document, shall be as nearly
         equivalent as may be practicable to the adjustments provided for in
         this Section 8. The above provisions shall similarly apply to
         successive reclassifications, consolidations, mergers, sales, transfers
         or share exchanges.

<PAGE>
                  (xiii) The Corporation shall at all times reserve and keep
         available, out of its authorized and unissued stock, solely for the
         purpose of effecting the conversion of the Class B Common Stock, such
         number of shares of its Class A Common Stock free of preemptive rights
         as shall from time to time be sufficient to effect the conversion of
         all shares of Class B Common Stock from time to time outstanding. The
         Corporation shall from time to time, in accordance with the laws of the
         State of Delaware, increase the authorized number of shares of Class A
         Common Stock if at any time the number of shares of Class A Common
         Stock not outstanding shall not be sufficient to permit the conversion
         of all the then outstanding shares of Class B Common Stock.

         If any shares of Class A Common Stock required to be reserved for
purposes of conversion of the Class B Common Stock hereunder require
registration with or approval of any governmental authority under any Federal or
State law before such shares may be issued upon conversion, the Corporation will
in good faith and as expeditiously as possible endeavor to cause such shares to
be duly registered or approved, as the case may be. If the Class A Common Stock
is listed on the New York Stock Exchange or any other national securities
exchange, the Corporation will, if permitted by the rules of such exchange, list
and keep listed on such exchange, upon official notice of issuance, all shares
of Class A Common Stock issuable upon conversion of the Class B Common Stock.

         The Corporation will pay any and all issue or other taxes that may be
payable in respect of any issue or delivery of shares of Class A Common Stock on
conversion of the Class B Common Stock. The Corporation shall not, however, be
required to pay any tax that may be payable in respect of any transfer involved
in the issue or delivery of Class A Common Stock (or other securities or assets)
in a name other than that in which the shares of Class B Common Stock so
converted were registered, and no such issue or delivery shall be made unless
and until the person requesting such issue has paid to the Corporation the
amount of such tax or has established, to the satisfaction of the Corporation,
that such tax has been paid.

         Before taking any action that would cause an adjustment reducing the
Conversion Rate, the Corporation will take any corporate action that may, in the
opinion of its counsel, be necessary in order that the Corporation may validly
and legally issue fully paid and nonassessable shares of Class A Common Stock at
the Conversion Rate as so adjusted.

                  (xiv) In case:

                           (a) the Corporation shall (1) declare any dividend
                  (or any other distribution) on its Class A Common Stock, other
                  than (A) a dividend payable in shares of Class A Common Stock
                  or (B) a dividend payable in cash out of its retained earnings
                  other than any special or nonrecurring or other extraordinary
                  dividend or (2) declare or authorize a redemption or
                  repurchase of in excess of ten percent (10%) of the then
                  outstanding shares of Class A Common Stock; or

                           (b) the Corporation shall authorize the granting to
                  the holders of Class A Common Stock of rights or warrants to
                  subscribe for or purchase any shares of stock of any class or
                  of any other rights or warrants (other than any rights
                  specified in paragraph (a)(1)(B) of clause (xi) of this
                  Section 8; or

                           (c) of any reclassification of Class A Common Stock
                  (other than a subdivision or combination of the outstanding
                  Class A Common Stock, or a change in par value, or from par
                  value to no par value, or from no par value to par value), or
                  of any consolidation or merger to which the Corporation is a
                  party and for which approval of any stockholders of the
                  Corporation shall be required, or of the sale or transfer of
                  all or substantially all of the assets of the Corporation or
                  of any compulsory share exchange whereby the Class A Common
                  Stock is converted into other securities, cash or other
                  property; or

                           (d) of the voluntary or involuntary dissolution,
                  liquidation or winding up of the Corporation;

then the Corporation shall cause to be filed with the transfer agent for the
Class B Common Stock, and shall cause to be mailed to each holder of record of
the outstanding Class B Common Stock, at such holder's address as it shall
appear upon the stock transfer books of the Corporation, at least 15 days prior
to the applicable record date hereinafter specified, a notice stating (x) the
date on which a record is to be taken for the purpose of such dividend,

<PAGE>
distribution, redemption or granting of rights or warrants or, if a record is
not to be taken, the date as of which the holders of Class A Common Stock of
record to be entitled to such dividend, distribution, redemption, rights or
warrants are to be determined, or (y) the date on which such reclassification,
consolidation, merger, sale, transfer, share exchange, dissolution, liquidation
or winding up is expected to become effective, and the date as of which it is
expected that holders of Class A Common Stock of record shall be entitled to
exchange their shares of Class A Common Stock for securities or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer,
share exchange, dissolution, liquidation or winding up (but neither the failure
so to mail such notice nor any defect therein or in the mailing thereof shall
affect the validity of the corporate action required to be specified in such
notice).

         SECTION 9. In the event of the liquidation, dissolution or winding up
of the Corporation, whether voluntary or involuntary, after there shall have
been paid or set apart for the holders of Preferred Stock the full preferential
amounts to which they are entitled, the holders of Class A Common Stock and
Class B Common Stock shall be entitled to receive the assets of the Corporation
remaining for distribution to its stockholders, ratably in proportion to the
number of shares held by them, respectively, together with any other stockholder
entitled to participate in such liquidation, dissolution or winding up on a
parity with the Class A Common Stock and the Class B Common Stock.

         SECTION 10. SUBDIVISION OR COMBINATION.

         (1) If the Corporation shall in any manner subdivide (by stock split or
otherwise) or combine (by reverse stock split or otherwise) the outstanding
shares of the Class A Common Stock or Class B Common Stock, or pay a stock
dividend in shares of any class to holders of that class, the per share voting
rights specified in Section 5 of this Article Fourth of Class B Common Stock
relative to Class A Common Stock shall be appropriately adjusted so as to avoid
any dilution in the aggregate voting rights of any class. Distribution by the
Corporation of shares of any class of its common stock as a dividend on any
other class of its common stock shall not require an adjustment pursuant to this
Section 10.

         (2) The determination of any adjustment required under this Section 10
shall be made by the Corporation's Board of Directors; any such determination
shall be binding and conclusive upon all holders of shares of all classes of the
Corporation's common stock. Following any such determination, the Secretary of
the Corporation shall maintain a record of any such adjustment.

         SECTION 11. Any Preferred Stock, Class A Common Stock or Class B Common
Stock, authorized hereunder or under any amendment hereof, in the discretion of
the Board of Directors, may be issued, except as herein otherwise provided, in
payment for property or services, or as bonuses to employees of the Corporation
or employees of subsidiary companies, or for other assets or securities
including cash, necessary or desirable, in the judgment of the Board of
Directors, to be purchased or acquired from time to time for the Corporation, or
for any other lawful purpose of the Corporation.

         SECTION 12. If it seems desirable so to do, the Board of Directors may
from time to time issue scrip for fractional shares of stock. Such scrip shall
not confer upon the holder any right to dividends or any voting or other rights
of a stockholder of the Corporation, but the Corporation shall from time to
time, within such time as the Board of Directors may determine or without limit
of time if the Board of Directors so determines, issue one or more whole shares
of stock upon the surrender of scrip for fractional shares aggregating the
number of whole shares issuable in respect of the scrip so surrendered, provided
that the scrip so surrendered shall be properly endorsed for transfer if in
registered form.

                                  ARTICLE FIFTH

         The Corporation is to have perpetual existence.

                                  ARTICLE SIXTH

         The private property of the stockholders shall not be subject to the
payment of corporate debts to any extent whatever.

<PAGE>
                                 ARTICLE SEVENTH

         SECTION 1. Except as otherwise fixed pursuant to the provisions of
Article Fourth hereof relating to the rights of the holders of any class or
series of stock having a preference over the Common Stock as to dividends or
upon liquidation, the number of Directors of the Corporation shall be not less
than six and not more than nine. Subject to the rights of the holders of any
class or series of stock having a preference over the Common Stock as to
dividends or upon liquidation, in case of any vacancy in the Board of Directors,
the remaining Directors, by affirmative vote of a majority thereof, may, and the
stockholders shall not be entitled to, elect a successor to hold office for the
unexpired portion of the term of the Director whose place is vacant and until
his successor shall be duly elected and qualified.

         SECTION 2. The Directors, other than those who may be elected by the
holders of any class or series of stock having a preference over the Common
Stock as to dividends or upon liquidation, shall be divided into three classes:
Class I, Class II and Class III. Within the limits specified in this Article
Seventh and the By-Laws of the Corporation, the number of directors in each
class shall be determined by resolution of the Board of Directors; provided,
however, that the number of Directorships shall be apportioned among the classes
so as to maintain the classes as nearly equal in number as possible. The terms
of office of the classes of Directors shall expire at the times of the annual
meetings of the stockholders as follows: Class I at the annual meeting held in
1994, Class II at the annual meeting held in 1995 and Class III at the annual
meeting held in 1996, or thereafter in each case when their respective
successors are elected and qualified. At each subsequent annual meeting, the
Directors chosen to succeed those whose terms are expiring shall be identified
as being of the same class as the Directors whom they succeed, and shall be
elected for a term expiring at the time of the third succeeding annual meeting
of stockholders, or thereafter in each case when their respective successors are
elected and qualified. No decrease in the number of directors constituting the
Board of Directors shall shorten the term of any incumbent director.

         SECTION 3. No Director shall be personally liable to the Corporation or
its stockholders for monetary damages for breach of fiduciary duty as a
Director, except for liability (i) for any breach of the Director's duty of
loyalty to the Corporation or its stockholders, (ii) for acts or omissions not
in good faith or which involve intentional misconduct or a knowing violation of
law, (iii) under Section 174, or any successor provision thereto, of the
Delaware General Corporation Law, or (iv) for any transaction from which the
Director derived an improper personal benefit. If the Delaware General
Corporation Law is amended to authorize corporate action further eliminating or
limiting the personal liability of directors, then the liability of a Director
of the Corporation shall be eliminated or limited to the fullest extent
permitted by the Delaware General Corporation Law, as so amended.

         SECTION 4. In furtherance, and not in limitation of the powers
conferred by law, the Board of Directors is expressly authorized:

                           (a) To make, alter, amend and repeal the By-Laws of
                  the Corporation.

                           (b) To remove at any time any officer elected or
                  appointed by the Board of Directors. Any other officer or
                  employee of the Corporation may be removed at any time by a
                  vote of the Board of Directors, or by any committee or
                  superior officer upon whom such power of removal may be
                  conferred by the By-Laws or by the vote of the Board of
                  Directors.

                           (c) From time to time to fix and to vary the sum to
                  be reserved over and above its capital stock paid in before
                  declaring any dividends; to direct and determine the use and
                  disposition of any surplus or net profits over and above the
                  capital stock paid in; to fix the time of declaring and paying
                  any dividend, and, unless otherwise provided in this
                  Certificate or in the By-Laws, to determine the amount of any
                  dividend. All sums reserved as working capital or otherwise
                  may be applied from time to time to the acquisition or
                  purchase of its bonds or other obligations or shares of its
                  own capital stock or other property to such extent and in such
                  manner and upon such terms as the Board of Directors shall
                  deem expedient and neither the stocks, bonds, or other
                  property so acquired shall be regarded as accumulated profits
                  for the purpose of declaring or paying dividends unless
                  otherwise determined by the Board of Directors, but shares of
                  such capital stock so purchased or acquired may be resold,
                  unless such shares shall have been retired for the purpose of
                  decreasing the Corporation's capital stock as provided by law.

<PAGE>
                           (d) From time to time to determine whether and to
                  what extent, and at what time and places and under what
                  conditions and regulations the accounts and books of the
                  Corporation (other than the stock ledger), or any of them,
                  shall be open to the inspection of the stockholders; and no
                  stockholder shall have any right to inspect any account or
                  book or document of Corporation, except as conferred by
                  statute or authorized by the Board of Directors or by a
                  resolution of the stockholders.

                           (e) The Corporation may by its By-Laws confer upon
                  the Directors powers and authorities additional to the
                  foregoing and to those expressly conferred upon them by
                  statute.

                                 ARTICLE EIGHTH

         Both the stockholders and the Directors of the Corporation may hold
their meetings and the Corporation may have an office or offices in such place
or places outside of the State of Delaware as the By-Laws may provide, and the
Corporation may keep its books outside of the State of Delaware except as
otherwise provided by law.

                                  ARTICLE NINTH

         In addition to any requirement of law and any other provision of this
Amended and Restated Certificate of Incorporation or any resolution or
resolutions of the Board of Directors adopted pursuant to Article Seventh of
this Amended and Restated Certificate of Incorporation (and notwithstanding the
fact that a lesser percentage may be specified by law, this Amended and Restated
Certificate of Incorporation or any such resolution or resolutions), the
affirmative vote of the holders of 66 2/3 percent or more of the combined voting
power of the then outstanding shares of Voting Stock, voting together as a
single class, shall be required to amend, alter or repeal this Amended and
Restated Certificate of Incorporation. Subject to the foregoing provisions of
this Article Ninth, the Corporation reserves the right to amend, alter, change
or repeal any provision contained in this Amended and Restated Certificate of
Incorporation in the manner, now or hereafter prescribed by statute, and all
rights conferred on stockholders herein are granted subject to this reservation.

         IN WITNESS WHEREOF, Rouge Industries, Inc. has caused this Certificate
to be signed and attested by its duly authorized officers, this 21st day of May,
2003.

                                          By:   /s/ Gary P. Latendresse
                                                -----------------------
                                                Name:    Gary P. Latendresse
                                                Title:   Vice Chairman and
                                                         Chief Financial Officer

ATTEST

/s/ Martin Szymanski
--------------------
Secretary

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