Document:

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                                                                     Exhibit 4.3

                                    [FORM OF]

         CERTIFICATE OF DESIGNATIONS, PREFERENCES AND RELATIVE, OPTIONAL
          AND OTHER SPECIAL RIGHTS AND QUALIFICATIONS, LIMITATIONS AND
              RESTRICTIONS THEREOF OF [o]% MANDATORILY CONVERTIBLE
                   PREFERRED STOCK, CLASS B, OF CONSECO, INC.

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                         Pursuant to Section 151 of the
                General Corporation Law of the State of Delaware
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                  Conseco, Inc. (the "Corporation"), a corporation organized and
existing under the General Corporation Law of the State of Delaware (the
"DGCL"), does hereby certify that, pursuant to the provisions of Section 151 of
the DGCL, the Corporation's Board of Directors has adopted the following
resolution, which resolution remains in full force and effect as of the date
hereof:

                  WHEREAS, the Board of Directors of the Corporation (the
"Board") is authorized within the limitations and restrictions stated in the
Corporation's Amended and Restated Certificate of Incorporation (the
"Certificate of Incorporation") to fix by resolution or resolutions the number
of shares constituting any series of preferred stock of the Corporation (the
"Preferred Stock") and to determine or alter the powers, preferences and rights,
and the qualifications, limitations and restrictions granted to or imposed upon
any wholly unissued series of Preferred Stock, including, without limiting the
generality of the foregoing, such provisions as may be desired concerning
voting, redemption, dividends, dissolution or the distribution of assets,
conversion or exchange; and

                  WHEREAS, it is the desire of the Board, pursuant to its
authority as aforesaid, to designate and fix the powers, preferences and
relative, optional and other special rights, and the qualifications, limitations
and restrictions of a series of the Preferred Stock and the number of shares
constituting such series.

                  NOW, THEREFORE, BE IT RESOLVED, that there is hereby
authorized and designated such a series of the Preferred Stock and that the
Board hereby fixes the designations, powers, preferences and rights, and the
qualifications, limitations and restrictions thereof as herein set forth:

                  1. Designation and Amount. The shares of this series of
Preferred Stock shall be designated as "[o]% Mandatorily Convertible Preferred
Stock, Class B" (the "Convertible Preferred Stock"), and the number of shares
constituting such series shall be [o], with a par value of $0.01 per share.

                  2. Ranking. The Convertible Preferred Stock shall rank, as to
payment of dividends and distribution of assets upon liquidation, dissolution or
winding up of the Corporation, (a) senior to the Common Stock, (b) senior to the
Class A

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Preferred Stock, (c) senior to any class or series of capital stock issued by
the Corporation which by its terms ranks junior to the Convertible Preferred
Stock, (d) junior to any class or series of Senior Stock and (e) pari passu with
any class or series of Parity Stock.

                  3. Dividends. (a) Dividends on the Convertible Preferred Stock
will be payable quarterly out of legally available funds, on each Dividend
Payment Date, at the annual rate of $[o] per share. The initial dividend on the
Convertible Preferred Stock for the first Dividend Period, commencing on the
Issue Date of the Convertible Preferred Stock (assuming an Issue Date of [o],
2004), to but excluding August 15, 2004, will be $[o] per share, and will be
payable on August 15, 2004. Each subsequent quarterly dividend on the
Convertible Preferred Stock will be $[o] per share. Dividends payable on a
Dividend Payment Date will be payable to Record Holders for the applicable
Dividend Payment Date.

                  (a) The Corporation shall pay dividends in cash on the
Convertible Preferred Stock on each Dividend Payment Date unless (1) the Board
determines that the Corporation does not have legally available assets for such
payment or (2) such dividend payment would result in a default under the Senior
Credit Agreement or in the Convertible Preferred Stock failing to qualify as
"Permitted Refinancing Preferred Stock", as defined on the Issue Date, for
purposes of the Senior Credit Agreement.

                  (b) The amount of dividends payable on each share of
Convertible Preferred Stock for each full quarterly period will be computed by
dividing the annual dividend rate by four. The amount of dividends payable for
any other period that is shorter or longer than a full quarterly dividend period
will be computed on the basis of a 360-day year consisting of twelve 30-day
months. Unpaid dividends on the Convertible Preferred Stock shall cumulate from
the Dividend Payment Date on which they become payable, whether or not there are
assets legally available for the payment of such dividends. Accumulated but
unpaid dividends on the Convertible Preferred Stock for any past Dividend Period
(whether or not declared) shall cumulate dividends at the annual rate of [o]%,
and shall be payable as provided in this Section 3. Any dividend payment made on
the shares of Convertible Preferred Stock shall first be credited against the
earliest unpaid dividend due with respect to the Convertible Preferred Stock
which remains payable. The Corporation shall disclose in its quarterly and
annual reports filed with the SEC the amount of any accumulated but unpaid
dividends on the Convertible Preferred Stock as of the date of such reports,
including the amount of any dividends cumulated thereon.

                  4. Payment Restrictions. (a) Unless all dividends on the
Convertible Preferred Stock, including any dividends accumulated thereon, for
all prior Dividend Periods have been paid in full in cash, the Corporation may
not:

                  (i) declare or pay any dividend or make any distribution of
         assets on any of the Corporation's capital stock that ranks junior to
         the Convertible Preferred Stock as to the payment of dividends or the
         distribution of assets upon liquidation, dissolution or winding up of
         the Corporation, including the Common Stock, other than dividends or
         distributions in the form of the Corporation's capital stock that

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         ranks junior to the Convertible Preferred Stock as to the payment of
         dividends and the distribution of assets upon liquidation, dissolution
         or winding up of the Corporation;

                  (ii) redeem, purchase or otherwise acquire any of the
         Corporation's capital stock, other than Class A Preferred Stock, that
         ranks junior to the Convertible Preferred Stock as to the payment of
         dividends or the distribution of assets upon liquidation, dissolution
         or winding up of the Corporation, except upon conversion or exchange
         for the Corporation's capital stock that ranks junior to the
         Convertible Preferred Stock as to the payment of dividends and the
         distribution of assets upon liquidation, dissolution or winding up of
         the Corporation; or

                  (iii) redeem, purchase or otherwise acquire any Parity Stock,
         except upon conversion or exchange for the Corporation's capital stock
         that ranks junior to the Convertible Preferred Stock as to the payment
         of dividends and the distribution of assets upon liquidation,
         dissolution or winding up of the Corporation.

                  5. Voting Rights. Except as otherwise required by law, the
Certificate of Incorporation or as set forth herein, Holders of the Convertible
Preferred Stock are not entitled to any voting rights and their consent shall
not be required for the taking of any corporate action.

                  (a) So long as any shares of Convertible Preferred Stock are
outstanding, the Corporation will not, without the approval of the Holders of at
least two-thirds of the shares of Convertible Preferred Stock then outstanding
(unless the approval of a greater number of such shares is required by
applicable law, in which case such greater number shall be required), given in
person or by proxy either at a regular meeting or at a special meeting called
for that purpose, at which the Holders of the Convertible Preferred Stock shall
vote separately as a single class:

                  (i) amend, alter or repeal (including by way of merger,
         consolidation, combination, reclassification or otherwise) any of the
         provisions of the Certificate of Incorporation or by-laws of the
         Corporation, so as to affect adversely any power, preference,
         privilege, voting power or right of the Holders of the Convertible
         Preferred Stock; provided, however, that the amendment of the
         provisions of the Certificate of Incorporation so as to authorize or
         create, or increase the authorized amount of, any shares ranking junior
         or pari passu as to payment of dividends and distribution of assets
         upon liquidation, dissolution or winding up of the Corporation to the
         Convertible Preferred Stock shall not be deemed to affect adversely the
         powers, preferences, privileges or rights of the Holders of the
         Convertible Preferred Stock

                  (ii) issue, authorize or increase the authorized amount of, or
         issue or authorize any obligation or security convertible into or
         evidencing a right to purchase, any Senior Stock of any class or
         series; provided, that the Corporation may issue, authorize or increase
         the authorized amount of, or issue or authorize any obligation or
         security convertible into or evidencing a right to purchase, any

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         Parity Stock or any stock ranking junior to the Convertible Preferred
         Stock as to dividends or distribution of assets upon liquidation,
         dissolution or winding up of the Corporation without the vote of the
         Holders of the Convertible Preferred Stock;

                  (iii) reclassify any of the Corporation's authorized stock
         into Senior Stock of any class, or any obligation or security
         convertible into or evidencing a right to purchase such stock; or

                  (iv) voluntarily liquidate, dissolve or wind up the
         Corporation's affairs, or sell, lease or convey (other than by
         mortgage) all or substantially all of the Corporation's property or
         business, or consolidate or merge the Corporation with or into any
         other Person, except any such consolidation or merger wherein none of
         the rights, preferences, privileges or voting powers of the Convertible
         Preferred Stock or the Holders thereof are adversely affected.

                  (b) Notwithstanding any other provision of this Certificate,
the Corporation shall not, without the affirmative approval of each Holder of
Convertible Preferred Stock thereby affected, amend, alter or repeal (including
by way of merger, consolidation, combination, reclassification or otherwise),
any of the provisions of the Certificate of Incorporation, which amendment,
alteration or repeal (i) adversely changes the dividends payable on the
Convertible Preferred Stock, (ii) adversely changes the Liquidation Preference
of the Convertible Preferred Stock or (iii) adversely affects the conversion
provisions of the Convertible Preferred Stock.

                  (c) If at any time dividends on any shares of Convertible
Preferred Stock or any class or series of Parity Stock shall be in arrears for
Dividend Periods that in the aggregate are equivalent to six calendar quarters,
whether or not consecutive (a "Nonpayment Event"), the authorized number of
directors constituting the Board shall be increased by two and the Holders of
shares of Convertible Preferred Stock, voting together as a single class with
all other series of Parity Stock upon which like voting rights have been
conferred and are exercisable (together, the "Voting Preferred Shares"), will be
entitled to elect two of the authorized number of the Corporation's directors
(each, a "Preferred Stock Director") at the next annual meeting of the
stockholders of the Corporation or at a special meeting called for such purpose
as hereinafter provided, whichever is earlier, and at each subsequent meeting
until all dividends accumulated on the Convertible Preferred Stock and such
Parity Stock have been fully paid or set aside for payment, and shall have the
exclusive right to remove any such member from office. In the event of any
vacancy in the office of a Preferred Stock Director, a successor shall be
elected by the holders of the Voting Preferred Shares, voting together as a
single class, at any general meeting of stockholders or at a special meeting of
the holders of such Voting Preferred Shares called in accordance with the
procedures described below for the election of Preferred Stock Directors, or by
a written resolution as provided below, such successor to hold office until the
next annual meeting of the stockholders or until the office of Preferred Stock
Directors terminates as hereinafter provided. If an interim vacancy shall occur
in the office of a Preferred Stock Director prior to a general meeting of the
stockholders or a special meeting or written resolution of the holders of such

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Voting Preferred Shares, a successor shall be elected by the Board upon
nomination by the then remaining Preferred Stock Director, to serve until a
successor is elected in accordance with the preceding sentence or until the
office of the Preferred Stock Directors terminates as hereinafter provided. Any
such election or removal shall be made by vote of a majority in liquidation
preference (including any accrued and unpaid dividends, to the extent not
otherwise included in the liquidation preference attributable to any such Voting
Preferred Shares) of the Voting Preferred Shares, voting together as a single
class, or by a resolution in writing signed by a majority in liquidation
preference (including any accrued and unpaid dividends, to the extent not
included in the liquidation preference attributable to any such Voting Preferred
Shares) of the holders of such Voting Preferred Shares. At any meeting held for
the purpose of electing Preferred Stock Directors, the presence in person or by
proxy of the holders of at least a majority in liquidation preference (including
any accrued and unpaid dividends, to the extent not included in the liquidation
preference attributable to any such Voting Preferred Shares) of the Voting
Preferred Shares shall be required to constitute a quorum of such Voting
Preferred Shares. At such time as all dividends accumulated on the Convertible
Preferred Stock and such Parity Stock and all dividends for the then current
quarterly dividend period in respect of such stock shall have been paid or set
aside for payment, the term of office of such Preferred Stock Directors will
terminate immediately and the rights of the holders of the Voting Preferred
Shares to vote for directors in respect of such Nonpayment Event shall terminate
immediately and the number of directors on the Board will thereupon, without
further action, be reduced by two.

                  Upon the occurrence of a Nonpayment Event, any holder of
Voting Preferred Shares may request by written notice (addressed to the
Corporate Secretary at the principal office of the Corporation) that the Board
convene a special meeting of the holders of such stock for the purpose of
electing the Preferred Stock Directors. If the Board or an authorized committee
thereof fails to convene such meeting within 30 days of receipt of such notice,
the holders of 10% of the Voting Preferred Shares (determined by liquidation
value), considered as a single class, will be entitled to convene such meeting,
upon written notice as provided above, and for that purpose shall have access to
the stock register. The provisions of the Certificate of Incorporation and
by-laws of the Corporation relating to the convening and conduct of general
meetings of stockholders will apply with respect to any such special meeting.

                  (d) In exercising the voting rights set forth in Section 5(b),
each share of Convertible Preferred Stock shall have one vote per share.

                  6. Liquidation, Dissolution or Winding Up. (a) In the event of
any voluntary or involuntary liquidation, dissolution or winding up of the
Corporation, the Holders of the Convertible Preferred Stock at the time
outstanding will be entitled to receive, out of the net assets of the
Corporation available for distribution to stockholders (subject to the rights of
the holders of any stock of the Corporation then outstanding ranking senior to
or pari passu with the Convertible Preferred Stock in respect of distributions
upon liquidation, dissolution or winding up of the Corporation and before any
amount shall be paid or distributed with respect to holders of any stock of the
Corporation then outstanding ranking junior to the Convertible Preferred Stock
in respect

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of distributions upon liquidation, dissolution or winding up of the
Corporation), a liquidating distribution per share equal to the Liquidation
Preference, plus an amount equal to the sum of all unpaid dividends, whether or
not declared, for the then-current Dividend Period and all prior Dividend
Periods, including any dividends accumulated thereon. After the payment to the
Holders of the Convertible Preferred Stock of the full amounts provided in this
Section 6(a), the Holders of the Convertible Preferred Stock will have no right
or claim to any of the Corporation's remaining assets.

                  (a) For the purposes of this Certificate, none of the
following shall be deemed to constitute a voluntary or involuntary liquidation,
dissolution or winding up of the Corporation:

                  (i) the sale, lease or conveyance of all or substantially all
         of the Corporation's property or business;

                  (ii) the merger or consolidation of the Corporation into or
         with any other Person; or

                  (iii) the merger or consolidation of any other Person into or
         with the Corporation.

                  (b) If, upon any voluntary or involuntary liquidation,
dissolution or winding up of the Corporation, the amounts payable with respect
to the Convertible Preferred Stock then outstanding are not paid in full as
provided in Section 6(a) hereof, no distribution shall be made on account of any
Parity Stock unless a pro rata distribution is made on the Convertible Preferred
Stock. The Holders of the Convertible Preferred Stock then outstanding and the
holders of any Parity Stock then outstanding shall share ratably in any
distribution of assets upon such liquidation, dissolution or winding up. The
amount allocable to the Convertible Preferred Stock and each series of Parity
Stock then outstanding will be based on the proportion of their full respective
liquidation preference (including any accrued and unpaid dividends, to the
extent not included in the liquidation preference attributable to any such
stock) to the aggregate liquidation preference of the outstanding shares of each
such series.

                  (c) Written notice of any voluntary or involuntary
liquidation, dissolution or winding up of the Corporation, stating the payment
date or dates when, and the place or places where, the amounts distributable to
Holders of Convertible Preferred Stock in such circumstances shall be payable,
shall be given by first-class mail, postage prepaid, mailed not less than twenty
calendar days prior to any payment date stated therein, to the Holders of
Convertible Preferred Stock, at the address shown on the books of the
Corporation or the Transfer Agent; provided, however, that a failure to give
notice as provided above or any defect therein shall not affect the
Corporation's ability to consummate a voluntary or involuntary liquidation,
dissolution or winding up of the Corporation.

                  6. Mandatory Conversion on the Mandatory Conversion Date. Each
share of Convertible Preferred Stock will automatically convert (unless
previously

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converted at the option of the Holder in accordance with Section 8 hereof,
converted at the option of the Corporation pursuant to Section 9 hereof or
pursuant to an exercise of a Merger Early Conversion right pursuant to Section
10 hereof) on the Mandatory Conversion Date, into a number of newly issued
shares of Common Stock equal to the Conversion Rate ("Mandatory Conversion").

                  (a) The "Conversion Rate" shall be as follows:

                  (i) if the Applicable Market Value of the Common Stock is
         equal to or greater than $[o] (the "Threshold Appreciation Price"), the
         Conversion Rate shall be equal to [o] shares of Common Stock per share
         of Convertible Preferred Stock (the "Minimum Conversion Rate");

                  (ii) if the Applicable Market Value of the Common Stock is
         less than the Threshold Appreciation Price but greater than $[o] (the
         "Initial Price"), the Conversion Rate shall be equal to $25 divided by
         the Applicable Market Value of the Common Stock; and

                  (iii) if the Applicable Market Value of the Common Stock is
         less than or equal to the Initial Price, the Conversion Rate shall be
         equal to [o] shares of Common Stock per share of Convertible Preferred
         Stock (the "Maximum Conversion Rate").

The Minimum Conversion Rate, the Maximum Conversion Rate, the Threshold
Appreciation Price and the Initial Price are each subject to adjustment in
accordance with the provisions of Section 14 hereof.

                  (b) The Holders of Convertible Preferred Stock on the
Mandatory Conversion Date shall have the right to receive in cash the dividend
payment due on such date (including any unpaid dividends for prior Dividend
Periods and any dividends accumulated thereon), whether or not declared prior to
such date, provided that at such time (i) the Corporation has legally available
assets sufficient to pay such dividend in cash and (ii) paying such dividend in
cash would not result in a default under the Senior Credit Agreement or in the
Convertible Preferred Stock failing to qualify as "Permitted Refinancing
Preferred Stock", as defined on the Issue Date, for purposes of the Senior
Credit Agreement. If on the Mandatory Conversion Date the Corporation does not
have adequate legally available assets to pay in cash all or any portion of the
accrued and unpaid dividends payable in cash on such date as provided in this
paragraph, or if such payment would result in a default under the Senior Credit
Agreement or result in the Convertible Preferred Stock failing to qualify as
"Permitted Refinancing Preferred Stock", as defined on the Issue Date, for
purposes of the Senior Credit Agreement, then, in any such case, with respect to
the portion of such dividends which the Corporation is unable to pay in cash,
the Corporation shall deliver to the Holders on the Mandatory Conversion Date a
number of shares of Common Stock per share of Convertible Preferred Stock equal
to (i) the aggregate amount of such unpaid dividends per share of Convertible
Preferred Stock divided by (ii) the greater of (A) the Applicable Market Value
of the Common Stock and (B) $0.15. The Corporation hereby covenants and

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agrees to use its reasonable best efforts to cause any such shares of Common
Stock delivered in respect of unpaid dividends on the Mandatory Conversion Date
to be freely transferable under the U.S. Federal securities laws by the
recipients thereof upon delivery thereto, including, if necessary, causing one
or more registration statements in respect of such shares of Common Stock to be
filed with and declared effective by the SEC.

                  8. Early Conversion at the Option of the Holder. Shares of the
Convertible Preferred Stock are convertible, in whole or in part, at the option
of the Holder thereof ("Early Conversion"), at any time prior to the Mandatory
Conversion Date and on or after the first day immediately following the Issue
Date, into shares of Common Stock at the Minimum Conversion Rate, subject to
adjustments as set forth in Section 14 hereof.

                  (a) A Holder of shares of Convertible Preferred Stock at the
close of business on the Record Date for the payment of a declared dividend
shall be entitled to receive such dividend on the corresponding Dividend Payment
Date notwithstanding the exercise by the Holder of the Early Conversion right
between such Record Date and the corresponding Dividend Payment Date. Except as
set forth in the foregoing sentence, upon any Early Conversion of shares of
Convertible Preferred Stock, the Corporation shall make no payment or allowance
for unpaid dividends on such shares of Convertible Preferred Stock, or for prior
dividends or distributions on the shares of Common Stock issued upon Early
Conversion thereof.

                  (b) Any written notice of Early Conversion pursuant to this
Section 8 shall be duly executed by the Holder, and specify:

                  (i) the number of shares of Convertible Preferred Stock to be
         converted;

                  (ii) the name(s) in which such Holder desires the shares of
         Common Stock issuable upon conversion to be registered and whether such
         shares of Common Stock are to be direct registered through DTC's Direct
         Registration System or issued in certificated form (subject to
         compliance with applicable legal requirements if any of such
         certificates are to be issued in a name other than the name of the
         Holder); and

                  (iii) if certificates are to be issued, the address to which
         such Holder wishes delivery to be made of such new certificates to be
         issued upon such conversion.

At the request of the Corporation, such Holder shall also provide any other
transfer forms, tax forms or other relevant documentation required and specified
by the Transfer Agent, if necessary, to effect the conversion.

                  (c) If specified by the Holder in the notice of conversion
that shares of Common Stock issuable upon conversion of the Convertible
Preferred Stock shall be issued to a person other than the Holder surrendering
the shares of Convertible Preferred Stock being converted, the Holder shall pay
or cause to be paid any transfer or similar taxes payable in connection with the
shares of Common Stock so issued.

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                  (d) Upon receipt by the Transfer Agent of a completed and duly
executed notice of conversion as set forth in Section 8(c) and upon surrender of
a certificate representing the share(s) of Convertible Preferred Stock to be
converted (if held in certificated form), the Corporation shall, within three
Business Days or as soon as possible thereafter, issue and shall instruct the
Transfer Agent to register the number of shares of Common Stock to which such
Holder shall be entitled upon conversion in the name(s) specified by such Holder
in the notice of conversion. If a Holder elects to hold its shares of Common
Stock issuable upon conversion of the Convertible Preferred Stock in
certificated form, the Corporation shall promptly send or cause to be sent, by
hand delivery (with receipt to be acknowledged) or by first-class mail, postage
prepaid, to the Holder thereof, at the address designated by such Holder in the
written notice of conversion, a certificate or certificates representing the
number of shares of Common Stock to which such Holder shall be entitled upon
conversion. In the event that there shall have been surrendered a certificate or
certificates representing shares of Convertible Preferred Stock, only part of
which are to be converted, the Corporation shall issue and deliver to such
Holder or such Holder's designee in the manner provided in the immediately
preceding sentence a new certificate or certificates representing the number of
shares of Convertible Preferred Stock that shall not have been converted.

                  (e) The issuance by the Corporation of shares of Common Stock
upon a conversion of shares of Convertible Preferred Stock in accordance with
the terms hereof shall be effective immediately prior to the close of business
on the day of receipt by the Transfer Agent of the notice of conversion and
other documents, if any, set forth in Section 8(c) hereof, compliance with
Section 8(d), if applicable, and the surrender by such Holder or such Holder's
designee of the certificate or certificates representing the shares of
Convertible Preferred Stock to be converted (if held in certificated form), duly
assigned or endorsed for transfer to the Corporation (or accompanied by duly
executed stock powers relating thereto).

                  9. Provisional Conversion. Prior to the Mandatory Conversion
Date and on or after the first day immediately following the Issue Date, the
Corporation may, at its option, cause the conversion of all, but not less than
all, of the shares of Convertible Preferred Stock then outstanding into shares
of Common Stock at the Minimum Conversion Rate for each share of Convertible
Preferred Stock ("Provisional Conversion"), subject to adjustment as set forth
in Section 14 below; provided, however, that the Closing Price of the Common
Stock has exceeded 150% of the Threshold Appreciation Price for at least 20
Trading Days within a period of 30 consecutive Trading Days ending on the
Trading Day prior to the date (the "Provisional Conversion Notice Date") on
which the Corporation notifies the Holders (pursuant to clause (b) below) that
it is exercising its option to cause the conversion of the Convertible Preferred
Stock pursuant to this Section 9. The Corporation shall be entitled to cause
this conversion only if, in addition to issuing the Holders shares of Common
Stock, the Corporation pays the Holders in cash (i) an amount equal to any
accrued and unpaid dividends (including any dividends accumulated thereon) on
the shares of Convertible Preferred Stock then outstanding, whether or not
declared, and (ii) the present value of all remaining dividend payments on the
shares of Convertible Preferred Stock then outstanding, through and including
the Mandatory Conversion Date, in each case, out of legally available assets of

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the Corporation. The present value of the remaining dividend payments will be
computed using a discount rate equal to the Treasury Yield.

                  (a) A written notice (the "Provisional Conversion Notice")
shall be sent by or on behalf of the Corporation, by first class mail, postage
prepaid, to the Holders of record as they appear on the stock register of the
Corporation on the Provisional Conversion Notice Date (i) notifying such Holders
of the election of the Corporation to convert and of the Provisional Conversion
Date (as defined below), which date shall not be less than 30 days nor be more
than 60 days after the Provisional Conversion Notice Date and (ii) stating the
Corporate Trust Office of the Transfer Agent at which the shares of Convertible
Preferred Stock called for conversion shall, upon presentation and surrender of
the certificate(s) (if such shares are held in certificated form) evidencing
such shares, be converted, and the Minimum Conversion Rate to be applied
thereto. The Corporation shall also issue a press release containing such
information and publish such information on its website on the World Wide Web,
provided that failure to issue such press release or publish such information on
the Corporation's website shall not act to prevent or delay conversion pursuant
to this Section 9.

                  (b) The Corporation shall deliver to the Transfer Agent
irrevocable written instructions authorizing the Transfer Agent, on behalf and
at the expense of the Corporation, to cause the Provisional Conversion Notice to
be duly mailed as soon as practicable after receipt of such irrevocable
instructions from the Corporation and in accordance with the above provisions.
The shares of Common Stock to be issued upon conversion of the Convertible
Preferred Stock pursuant to this Section 9 and all funds necessary for the
payment in cash of (1) any accrued and unpaid dividends (including any dividends
accumulated thereon) on the shares of Convertible Preferred Stock then
outstanding, whether or not declared, and (2) the present value of all remaining
dividend payments on the shares of Convertible Preferred Stock then outstanding
through and including the Mandatory Conversion Date, shall be deposited with the
Transfer Agent in trust at least one Business Day prior to the Provisional
Conversion Date, for the pro rata benefit of the Holders of record as they
appear on the stock register of the Corporation, so as to be and continue to be
available therefore. Neither failure to mail such Provisional Conversion Notice
to one or more such Holders nor any defect in such Provisional Conversion Notice
shall affect the sufficiency of the proceedings for conversion as to other
Holders.

                  (c) If a Provisional Conversion Notice shall have been given
as hereinbefore provided, then each Holder shall be entitled to all powers,
preferences and rights accorded by this Certificate until and including the
Provisional Conversion Date. From and after the Provisional Conversion Date,
upon delivery by the Corporation of the Common Stock and payment of the funds to
the Transfer Agent as described in paragraph (c) above, the Convertible
Preferred Stock shall no longer be deemed to be outstanding, and all rights of
such Holders shall cease and terminate, except the right of the Holders, upon
surrender of certificates therefor, to receive Common Stock and any amounts to
be paid hereunder.

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                  (d) The deposit of monies in trust with the Transfer Agent up
to the amount necessary for the Provisional Conversion shall be irrevocable
except that the Corporation shall be entitled to receive from the Transfer Agent
the interest or other earnings, if any, earned on any monies so deposited in
trust, and the Holders of the shares converted shall have no claim to such
interest or other earnings, and any balance of monies so deposited by the
Corporation and unclaimed by the Holders entitled thereto at the expiration of
two years from the Provisional Conversion Date shall be repaid, together with
any interest or other earnings thereon, to the Corporation, and after any such
repayment, the Holders of the shares entitled to the funds so repaid to the
Corporation shall look only to the Corporation for such payment without
interest.

                  10. Early Conversion Upon Cash Merger. In the event of a
merger or consolidation of the Corporation prior to the Mandatory Conversion
Date of the type described in Section 14(e) in which the Common Stock
outstanding immediately prior to such merger or consolidation is exchanged for
consideration consisting of at least 30% cash or cash equivalents (any such
event, a "Cash Merger"), then the Holders of the Convertible Preferred Stock
shall have the right to convert their shares of Convertible Preferred Stock
prior to the Mandatory Conversion Date (such right of the Holders to convert
their shares pursuant to this Section 10(a) being the "Merger Early Conversion")
as provided herein.

                  (a) On or before the fifth Business Day after the consummation
of a Cash Merger, the Corporation or, at the request and expense of the
Corporation, the Transfer Agent, shall give all Holders notice of the occurrence
of the Cash Merger and of the Merger Early Conversion right arising as a result
thereof. The Corporation shall also deliver a copy of such notice to the
Transfer Agent. Each such notice shall contain:

                  (i) the date, which shall be not less than 20 nor more than 35
         calendar days after the date of such notice, on which the Merger Early
         Conversion will be effected (such date being the "Merger Early
         Conversion Date");

                  (ii) the date, which shall be on the Merger Early Conversion
         Date, by which the Merger Early Conversion right must be exercised;

                  (iii) the Conversion Rate in effect on the Trading Day
         immediately preceding such Cash Merger (calculated as if the Trading
         Day immediately preceding such Cash Merger were the Mandatory
         Conversion Date) and the kind and amount of securities, cash and other
         property receivable per share of Convertible Preferred Stock by the
         Holder upon conversion of shares of Convertible Preferred Stock
         pursuant to Section 10(d); and

                  (iv) the instructions a Holder must follow to exercise the
         Merger Early Conversion right.

                  (b) To exercise a Merger Early Conversion right, a Holder
shall deliver to the Transfer Agent at its Corporate Trust Office by 5:00 p.m.,
New York City time on or before the date by which the Merger Early Conversion
right must be exercised as

<PAGE>

                                                                              12

specified in the notice, the certificate(s) (if such shares are held in
certificated form) evidencing the shares of Convertible Preferred Stock with
respect to which the Merger Early Conversion right is being exercised, duly
assigned or endorsed for transfer to the Corporation, or accompanied by duly
executed stock powers relating thereto, or in blank, with a written notice to
the Corporation stating the Holder's intention to convert early in connection
with the Cash Merger containing the information set forth in Section 8(c) and
providing the Corporation with payment instructions.

                  (c) If the Holder exercises its Merger Early Conversion right
pursuant to the terms hereof, on the Merger Early Conversion Date the
Corporation shall deliver or cause the Transfer Agent to deliver, in accordance
with the instructions provided by the Holder thereof in the written notice
provided to the Corporation as set forth above, the net cash, securities and
other property such exercising Holder is entitled to receive, together with
payment in lieu of any fraction of a share, as provided herein, determined by
assuming the Holder had converted its shares of Convertible Preferred Stock
immediately before the Cash Merger at the Conversion Rate calculated in
accordance with Section 7(b) hereof. In the event a Merger Early Conversion
right is exercised by a Holder in accordance with the terms hereof, all
references herein to Mandatory Conversion Date in respect of such Holder shall
be deemed to refer to such Merger Early Conversion Date.

                  (d) In the event that a Merger Early Conversion is effected
with respect to shares of Convertible Preferred Stock representing less than all
the shares of Convertible Preferred Stock held by a Holder, upon such Merger
Early Conversion the Corporation (or the successor to the Corporation, as the
case may be) shall execute and the Transfer Agent shall, unless otherwise
instructed in writing, authenticate, countersign and deliver to the Holder
thereof, at the expense of the Corporation, a certificate evidencing the shares
of Convertible Preferred Stock as to which Merger Early Conversion was not
effected.

                  11. Conversion Procedures. Dividends on any shares of
Convertible Preferred Stock converted to Common Stock shall cease to accrue, and
such shares of Convertible Preferred Stock shall cease to be outstanding, upon
conversion on the Mandatory Conversion Date, the Provisional Conversion Date,
the Merger Early Conversion Date or any Early Conversion Date (each, a
"Conversion Date").

                  (a) The person or persons entitled to receive the Common Stock
issuable upon such conversion shall be treated for all purposes as the record
holder(s) of such shares of Common Stock as of the close of business on the
Mandatory Conversion Date, the Merger Early Conversion Date, the Provisional
Conversion Date or any Early Conversion Date, as the case may be. No allowance
or adjustment, except as set forth in Section 14, shall be made in respect of
dividends payable to holders of Common Stock of record as of any date prior to
such effective date. Prior to such effective date, shares of Common Stock
issuable upon conversion of any shares of Convertible Preferred Stock shall not
be deemed outstanding for any purpose, and Holders of shares of Convertible
Preferred Stock shall have no rights with respect to the Common Stock (including
voting rights, rights to respond to tender offers for the Common Stock and
rights to receive any

<PAGE>

                                                                              13

dividends or other distributions on the Common Stock) by virtue of holding
shares of Convertible Preferred Stock.

                  (b) Shares of Convertible Preferred Stock duly converted in
accordance with this Certificate, or otherwise reacquired by the Corporation,
will resume the status of authorized and unissued Preferred Stock, undesignated
as to series and available for future issuance.

                  (c) In the event that a Holder of shares of Convertible
Preferred Stock shall not by written notice designate the name in which shares
of Common Stock to be issued upon conversion of such shares should be registered
or the address to which the certificate or certificates representing such shares
should be sent, the Corporation shall be entitled to register such shares, and
make such payment, in the name of the Holder of such Convertible Preferred Stock
as shown on the records of the Corporation and to send the certificate or
certificates representing such shares to the address of such Holder shown on the
records of the Corporation.

                  12. Reservation of Common Stock. The Corporation shall at all
times on and after the first business day immediately following the Issue Date
reserve and keep available out of its authorized and unissued Common Stock,
solely for issuance upon the conversion of shares of Convertible Preferred Stock
as herein provided, free from any preemptive or other similar rights, such
number of shares of Common Stock as shall from time to time be issuable upon the
conversion of all the shares of Convertible Preferred Stock then outstanding.

                  (a) Notwithstanding the foregoing, the Corporation shall be
entitled to deliver upon conversion of shares of Convertible Preferred Stock, as
herein provided, shares of Common Stock reacquired and held in the treasury of
the Corporation (in lieu of the issuance of authorized and unissued shares of
Common Stock), so long as any such treasury shares are free and clear of all
liens, charges, security interests or encumbrances.

                  (b) All shares of Common Stock delivered upon conversion of
the Convertible Preferred Stock shall be duly authorized, validly issued, fully
paid and non-assessable, free and clear of all liens, claims, security interests
and other encumbrances.

                  (c) The Corporation shall prepare and shall use its best
efforts to obtain and keep in force such governmental or regulatory permits or
other authorizations as may be required by law, and shall comply with all
applicable requirements as to registration or qualification of the Common Stock
(and all requirements to list the Common Stock issuable upon conversion of
Convertible Preferred Stock that are at the time applicable), in order to enable
the Corporation lawfully to issue and deliver to each Holder of record of
Convertible Preferred Stock such number of shares of its Common Stock as shall
from time to time be sufficient to effect the conversion of all shares of
Convertible Preferred Stock then outstanding and convertible into shares of
Common Stock.

                  (d) The Corporation hereby covenants and agrees that, if at
any time the Common Stock shall be listed on the New York Stock Exchange or any
other national

<PAGE>

                                                                              14

securities exchange or automated quotation system, the Corporation will, if
permitted by the rules of such exchange or automated quotation system, list and
keep listed, so long as the Common Stock shall be so listed on such exchange or
automated quotation system, all Common Stock issuable upon conversion of the
Convertible Preferred Stock; provided, however, that if the rules of such
exchange or automated quotation system permit the Corporation to defer the
listing of such Common Stock until the first conversion of Convertible Preferred
Stock into Common Stock in accordance with the provisions hereof, the
Corporation covenants to list such Common Stock issuable upon conversion of the
Convertible Preferred Stock in accordance with the requirements of such exchange
or automated quotation system at such time.

                  13. Fractional Shares. No fractional shares of Common Stock
will be issued as a result of any conversion of shares of Convertible Preferred
Stock.

                  (a) In lieu of any fractional share otherwise issuable in
respect of any Mandatory Conversion pursuant to Section 7 hereof, any
Provisional Conversion pursuant to Section 9 hereof, any Early Conversion
pursuant to Section 8 hereof or any Merger Early Conversion pursuant to Section
10 hereof, the Corporation shall pay an amount in cash equal to the same
fraction of:

                  (i) in the case of a Mandatory Conversion pursuant to Section
         7 or Provisional Conversion pursuant to Section 9 hereof or a Merger
         Early Conversion pursuant to Section 10, the Current Market Price; or

                  (ii) in the case of an Early Conversion pursuant to Section 8
         hereof, the Closing Price of the Common Stock determined as of the
         Trading Day immediately preceding the effective date of conversion.

                  14. Anti-Dilution Adjustments to the Fixed Conversion Rates.
Each Fixed Conversion Rate and the number of shares of Common Stock to be
delivered upon any conversion of shares of Convertible Preferred Stock pursuant
to Sections 7, 8, 9 or 10 hereof, shall be subject to the following adjustments.

                  (i) Stock Dividends and Distributions. In case the Corporation
         shall pay or make a dividend or other distribution on the Common Stock
         in shares of Common Stock, each Fixed Conversion Rate, as in effect at
         the opening of business on the day following the date fixed for the
         determination of stockholders entitled to receive such dividend or
         other distribution, shall be increased by dividing such Fixed
         Conversion Rate by a fraction of which the numerator shall be the
         number of shares of Common Stock outstanding at the close of business
         on the date fixed for such determination and the denominator shall be
         the sum of such number of Shares of Common Stock outstanding and the
         total number of shares of Common Stock constituting such dividend or
         other distribution, such increase to become effective immediately after
         the opening of business on the day following the date fixed for such
         determination. For the purposes of this clause (i), the number of
         shares of Common Stock at the time outstanding shall not include shares
         held in the treasury of the Corporation but shall include any shares

<PAGE>

                                                                              15

         issuable in respect of any scrip certificates issued in lieu of
         fractions of shares of Common Stock. The Corporation will not pay any
         dividend or make any distribution on shares of Common Stock held in the
         treasury of the Corporation.

                  (ii) Subdivisions, Splits and Combinations of the Common
         Stock. In case outstanding shares of Common Stock shall be subdivided
         or split into a greater number of shares of Common Stock, each Fixed
         Conversion Rate in effect at the opening of business on the day
         following the day upon which such subdivision or split becomes
         effective shall be proportionately increased, and, conversely, in case
         outstanding shares of Common Stock shall each be combined into a
         smaller number of shares of Common Stock, each Fixed Conversion Rate in
         effect at the opening of business on the day following the day upon
         which such combination becomes effective shall be proportionately
         reduced, such increase or reduction, as the case may be, to become
         effective immediately after the opening of business on the day
         following the day upon which such subdivision, split or combination
         becomes effective.

                  (iii) Issuance of Stock Purchase Rights. In case the
         Corporation shall issue rights or warrants to all holders of its Common
         Stock (other than rights or warrants issued pursuant to a dividend
         reinvestment plan or share purchase plan or other similar plans),
         entitling such holders, for a period of up to 45 days, to subscribe for
         or purchase shares of Common Stock at a price per share less than the
         Current Market Price on the date fixed for the determination of
         stockholders entitled to receive such rights or warrants, each Fixed
         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 Fixed Conversion Rate by a fraction, the numerator of
         which shall be the number of shares of Common Stock outstanding at the
         close of business on the date fixed for such determination plus the
         number of shares of Common Stock so offered for subscription or
         purchase and the denominator of which shall be the number of shares of
         Common Stock outstanding at the close of business on the date fixed for
         such determination plus the number of shares of Common Stock which the
         aggregate offering price of the total number of shares of 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. For the purposes of this clause (iii), the number of
         shares of Common Stock at any time outstanding shall not include shares
         held in the treasury of the Corporation but shall include any shares
         issuable in respect of any scrip certificates issued in lieu of
         fractions of shares of Common Stock. The Corporation shall not issue
         any such rights or warrants in respect of shares of Common Stock held
         in the treasury of the Corporation.

                  (iv) Debt or Asset Distribution. In case the Corporation
         shall, by dividend or otherwise, distribute to all holders of its
         Common Stock evidences of its indebtedness, shares of capital stock,
         securities, cash or other assets (excluding any dividend or
         distribution referred to in Section 14(a)(i) or Section 14(a)(ii)
         hereof, any rights or warrants referred to in Section 14(a)(iii)
         hereof, any dividend

<PAGE>

                                                                              16

         or distribution paid exclusively in cash in connection with the
         liquidation, dissolution or termination of the Corporation and any
         dividend of shares of capital stock of any class or series, or similar
         equity interests, of or relating to a subsidiary or other business unit
         in the case of a Spin-Off referred to in Section 14(a)(iv)(B) below),
         each Fixed Conversion Rate shall be adjusted so that it shall equal the
         rate determined by multiplying such Fixed 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, the numerator of which shall be the Current Market Price of
         the Common Stock on the date fixed for such determination and the
         denominator of which shall be such Current Market Price of the Common
         Stock less the then Fair Market Value of the portion of the assets or
         evidences of indebtedness, shares, securities, cash or property so
         distributed applicable to one share of 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. In any case in which this clause
         (iv)(A) is applicable, clause (iv)(B) of this Section 14(a) shall not
         be applicable.

                  (A) In the case of a Spin-Off, each Fixed Conversion Rate in
         effect immediately before the close of business on the record date
         fixed for determination of stockholders entitled to receive that
         distribution will be increased by multiplying each Fixed Conversion
         Rate by a fraction, the numerator of which is the Current Market Price
         of the Common Stock plus the Fair Market Value of the portion of those
         shares of capital stock or similar equity interests so distributed
         applicable to one share of Common Stock and the denominator of which is
         the Current Market Price of the Common Stock. Any adjustment to the
         Conversion Rate under this clause (iv)(B) will occur on the 15th
         Trading Day from, but excluding, the "ex-date" with respect to the
         Spin-Off.

                  (v) Self Tender Offers and Exchange Offers. In case a tender
         or exchange offer made by the Corporation or any subsidiary of the
         Corporation for all or any portion of the Common Stock shall expire and
         such tender or exchange offer (as amended upon the expiration thereof)
         shall require the payment to stockholders (based on the acceptance, up
         to any maximum specified in the terms of the tender or exchange offer,
         of Purchased Shares (as defined below)) of an aggregate consideration
         per share of Common Stock having a Fair Market Value that exceeds the
         Closing Price of the Common Stock as of the Trading Day next succeeding
         the last time (the "Expiration Time") tenders or exchanges could have
         been made pursuant to such tender or exchange offer (as it may be
         amended), then, and in each such case, immediately prior to the opening
         of business on the second Trading Day after the date of the Expiration
         Time, each Fixed Conversion Rate shall be adjusted so that the same
         shall equal the rate determined by dividing such Fixed Conversion Rate
         in effect immediately prior to the close of business on the first
         Trading Day after the Expiration Time by a fraction (A) the numerator
         of which shall be equal to (x) the product of (I) the Closing Price of
         the Common Stock on the first Trading Day after the Expiration Time and
         (II) the number of shares of Common Stock outstanding (including any
         Purchased Shares) at the

<PAGE>

                                                                              17

         Expiration Time less (y) the amount of cash plus the Fair Market Value
         of the aggregate consideration payable to stockholders in the tender or
         exchange offer (assuming the acceptance, up to any maximum specified in
         the terms of the tender or exchange offer, of Purchased Shares), and
         (B) the denominator of which shall be equal to the product of (x) the
         Closing Price of the Common Stock as of the first Trading Day after the
         Expiration Time and (y) the number of shares of Common Stock
         outstanding (including any Purchased Shares) as of the Expiration Time
         less the number of all shares validly tendered and not withdrawn as of
         the Expiration Time (the shares deemed so accepted, up to any such
         maximum, being referred to as the "Purchased Shares").

                  (vi) Third Party Tender Offers and Exchange Offers. In case
         any Person other than the Corporation or any subsidiary of the
         Corporation makes a payment in respect of a tender offer or exchange
         offer with respect to which, as of the last time (the "Offer Expiration
         Time") that tenders or exchanges may be made pursuant to such tender or
         exchange offer (as it may be amended), the Board is not recommending
         rejection of the offer, then each Fixed Conversion Rate in effect
         immediately prior to the close of business on the date of the Offer
         Expiration Time will be adjusted by multiplying such Fixed Conversion
         Rate by a fraction (A) the numerator of which will be the sum of (x)
         the Fair Market Value of the aggregate consideration payable to all
         holders of Common Stock based on the acceptance (up to any maximum
         specified in the terms of the tender or exchange offer) of all shares
         validly tendered or exchanged and not withdrawn as of the Offer
         Expiration Time (the shares deemed so accepted, up to any such maximum,
         being referred to as the "Accepted Purchased Shares") and (y) the
         product of the number of shares of Common Stock outstanding less any
         such Accepted Purchased Shares and the Closing Price of the Common
         Stock on the Trading Day next succeeding the Offer Expiration Time and
         (B) the denominator of which will be the product of the number of
         shares of Common Stock outstanding, including any such Accepted
         Purchased Shares, and the Closing Price of the Common Stock on the
         Trading Day next succeeding the Offer Expiration Time. Such adjustment
         shall become effective as of the opening of business on the day
         following the Offer Expiration Time.

                  The adjustment referred to in this clause (vi) will only be
         made if (1) the tender offer or exchange offer is for an amount that
         increases the offeror's ownership of Common Stock to more than 25% of
         the total shares of Common Stock outstanding and (2) the cash and Fair
         Market Value of any other consideration included in the payment per
         share of Common Stock exceeds the Closing Price of the Common Stock on
         the Trading Day next succeeding the Offer Expiration Time.

                  However, the adjustment referred to in this clause will not be
         made if, as of the Offer Expiration Time, the offering documents
         disclose a plan or an intention to cause the Corporation to engage in a
         consolidation or merger or a sale of all or substantially all of its
         assets. In the event the offeror is obligated to purchase shares
         pursuant to any such tender or exchange offer, but such Person is

<PAGE>

                                                                              18

         permanently prevented by applicable law from effecting any such
         purchases or all such purchases are rescinded, each Fixed Conversion
         Rate shall be readjusted to what would have been in effect if such
         tender or exchange offer had not been made.

                  (vii) Rights Plans. To the extent that the Corporation has a
         rights plan in effect with respect to the Common Stock on any
         Conversion Date, upon conversion of any Convertible Preferred Stock,
         Holders shall receive, in addition to the Common Stock, the rights
         under such rights plan, unless, prior to such Conversion Date, the
         rights have separated from the Common Stock, in which case each Fixed
         Conversion Rate will be adjusted at the time of separation of such
         rights as if the Corporation made a distribution to all holders of the
         Common Stock as described in clause (iv)(A) above, subject to
         readjustment in the event of the expiration, termination or redemption
         of such rights.

                  (b) Discretionary Adjustment. The Corporation may make such
increases in each Fixed Conversion Rate, in addition to any other increases
required by this Section 14, as the Board deems advisable for any reason;
provided that the same proportionate adjustment must be made to each Fixed
Conversion Rate.

                  (c) Calculation of Adjustments. All adjustments to the
Conversion Rate shall be calculated to the nearest 1/10,000th of a share (or, if
there is not a nearest 1/10,000 of a share, to the next lower 1/10,000 of a
share) of Common Stock. If an adjustment is made to the Conversion Rate pursuant
to Section 14(a)(i), 14(a)(ii), 14(a)(iii), 14(a)(iv), 14(a)(v), 14(a)(vi) or
14(a)(vii), an inversely proportionate adjustment shall also be made to the
Threshold Appreciation Price and the Initial Price. Such adjustment shall be
made by dividing each of the Threshold Appreciation Price and the Initial Price
by a fraction, the numerator of which shall be the Maximum Conversion Rate
immediately after such adjustment pursuant to Section 14(a)(i), 14(a)(ii),
14(a)(iii), 14(a)(iv), 14(a)(v), 14(a)(vi) or 14(a)(vii) and the denominator of
which shall be the Maximum Conversion Rate immediately before such adjustment.

                  (d) Notice of Adjustment. Whenever each Fixed Conversion Rate
is to be adjusted in accordance with Section 14(a) or 14(b), the Corporation
shall (i) compute each Fixed Conversion Rate in accordance with Section 14(a) or
14(b), as the case may be, and prepare and transmit to the Transfer Agent an
Officer's Certificate setting forth each Fixed Conversion Rate, the method of
calculation thereof in reasonable detail, and the facts requiring such
adjustment and upon which such adjustment is based and (ii) as soon as
practicable following the occurrence of an event that requires or permits an
adjustment to each Fixed Conversion Rate pursuant to Section 14(a) hereof (or if
the Corporation is not aware of such occurrence, as soon as practicable after
becoming so aware), provide a written notice to the Holders of the Convertible
Preferred Stock (A) of the occurrence of such event and (B) as soon as
practicable following the determination of each revised Fixed Conversion Rate in
accordance with Section 14(a) hereof, a statement setting forth in reasonable
detail the method by which the adjustment to each Fixed Conversion Rate was
determined and setting forth each revised Fixed Conversion Rate.

<PAGE>

                                                                              19

                  (e) Reorganization Events. In the event of:

                  (i) any consolidation or merger of the Corporation with or
         into another Person (other than a merger or consolidation in which the
         Corporation is the continuing corporation and in which the Common Stock
         outstanding immediately prior to the merger or consolidation is not
         exchanged for cash, securities or other property of the Corporation or
         another Person);

                  (ii) any sale, transfer, lease or conveyance to another Person
         of all or substantially all of the property and assets of the
         Corporation;

                  (iii) any reclassification of Common Stock into securities any
         portion of which are not Common Stock; or

                  (iv) any statutory exchange of securities of the Corporation
         with another Person (other than in connection with a merger or
         acquisition);

         (any such event specified in this Section 14(e), a "Reorganization
         Event"); each share of Convertible Preferred Stock outstanding
         immediately prior to such Reorganization Event shall, after such
         Reorganization Event, be convertible into the kind of securities, cash
         and other property receivable in such Reorganization Event (without any
         interest thereon and without any right to dividends or distribution
         thereon which have a record date that is prior to the conversion date)
         per share of Common Stock (the "Exchange Property") by a holder of
         Common Stock that (1) is not a Person with which the Corporation
         consolidated or into which the Corporation merged or which merged into
         the Corporation or to which such sale or transfer was made, as the case
         may be (any such Person, a "Constituent Person"), or an Affiliate of a
         Constituent Person, to the extent such Reorganization Event provides
         for different treatment of Common Stock held by Affiliates of
         Constituent Persons and non-Affiliates and (2) failed to exercise his
         rights of election, if any, as to the kind or amount of securities,
         cash and other property receivable upon such Reorganization Event
         (provided that if the kind or amount of securities, cash and other
         property receivable upon such Reorganization Event is not the same for
         each share of Common Stock held immediately prior to such
         Reorganization Event by other than a Constituent Person or an Affiliate
         thereof and in respect of which such rights of election shall not have
         been exercised ("Non-electing Share"), then, for the purpose of this
         Section 14(e) the kind and amount of securities, cash and other
         property receivable upon such Reorganization Event by each Non-electing
         Share shall be deemed to be the kind and amount so receivable per share
         by a plurality of the Non-electing Shares). The amount of Exchange
         Property receivable upon conversion of any Convertible Preferred Stock
         shall be determined based upon the Conversion Rate in effect on such
         Conversion Date. The applicable Conversion Rate shall be (x) the
         Minimum Conversion Rate, in the case of an Early Conversion Date or a
         Provisional Conversion Date and (y) determined based upon the
         definition of Conversion Rate set forth in Section 7, in the case of
         the Mandatory Conversion Date or a Merger Early Conversion Date.

<PAGE>

                                                                              20

         For purposes of this Section 14(e), "Applicable Market Value" shall be
         deemed to refer to the Applicable Market Value of the Exchange Property
         and such value shall be determined (A) with respect to any publicly
         traded securities that compose all or part of the Exchange Property,
         based on the Closing Price of such securities, (B) in the case of any
         cash that composes all or part of the Exchange Property, based on the
         amount of such cash and (C) in the case of any other property that
         composes all or part of the Exchange Property, based on the value of
         such property, as determined by a nationally recognized independent
         investment banking firm retained by the Corporation for this purpose.
         For purposes of this Section 14(e), the term "Closing Price" shall be
         deemed to refer to the closing sale price, last quoted bid price or
         mid-point of the last bid and ask prices, as the case may be, of any
         publicly traded securities that comprise all or part of the Exchange
         Property. For purposes of this Section 14(e), references to Common
         Stock in the definition of "Trading Day" shall be replaced by
         references to any publicly traded securities that comprise all or part
         of the Exchange Property.

                  The above provisions of this Section 14(e) shall similarly
apply to successive Reorganization Events and the provisions of Section 14 shall
apply to any shares of capital stock of the Corporation (or any successor)
received by the holders of Common Stock in any such Reorganization Event.

                  The Corporation shall, within 20 days of the occurrence of any
Reorganization Event, provide written notice of such occurrence of such event
and of the kind and amount of the cash, securities or other property that
constitute the Exchange Property. The Corporation shall also issue a press
release containing such information and publish such information on its website
on the World Wide Web. Failure to deliver such notice shall not affect the
operation of this Section 14(e).

                  15. Replacement Stock Certificates. If physical certificates
are issued, and any of the Convertible Preferred Stock certificates shall be
mutilated, lost, stolen or destroyed, the Corporation shall, at the expense of
the Holder, issue, in exchange and in substitution for and upon cancellation of
the mutilated Convertible Preferred Stock certificate, or in lieu of and
substitution for the Convertible Preferred Stock certificate lost, stolen or
destroyed, a new Convertible Preferred Stock certificate of like tenor and
representing an equivalent number of shares of Convertible Preferred Stock, but
only upon receipt of evidence of such loss, theft or destruction of such
Convertible Preferred Stock certificate and indemnity, if requested,
satisfactory to the Corporation and the Transfer Agent.

                  (a) The Corporation is not required to issue any certificates
representing the Convertible Preferred Stock on or after the Mandatory
Conversion Date or any Provisional Conversion Date. In lieu of the delivery of a
replacement certificate following the Mandatory Conversion Date or any
Provisional Conversion Date, the Transfer Agent, upon delivery of the evidence
and indemnity described above, will deliver the shares of Common Stock issuable
and other property payable pursuant to the terms of the Convertible Preferred
Stock formerly evidenced by the certificate.

<PAGE>

                                                                              21

                  16. Transfer Agent and Registrar. The duly appointed Transfer
Agent and Registrar for the Convertible Preferred Stock shall be Wachovia Bank,
N.A. The Corporation may, in its sole discretion, remove the Transfer Agent in
accordance with the agreement between the Corporation and the Transfer Agent;
provided that the Corporation shall appoint a successor transfer agent who shall
accept such appointment prior to the effectiveness of such removal. Upon any
such removal or appointment, the Corporation shall send notice thereof by
first-class mail, postage prepaid, to the Holders of the Convertible Preferred
Stock.

                  17. Form. Convertible Preferred Stock shall be issued in the
form of one or more permanent global shares of Convertible Preferred Stock in
definitive, fully registered form with the global legend (the "Global Shares
Legend") as set forth on the form of Convertible Preferred Stock certificate
attached hereto as Exhibit A (each, a "Global Preferred Share"), which is hereby
incorporated in and expressly made a part of this Certificate. The Global
Preferred Share may have notations, legends or endorsements required by law,
stock exchange rules, agreements to which the Corporation is subject, if any, or
usage (provided that any such notation, legend or endorsement is in a form
acceptable to the Corporation). The Global Preferred Share shall be deposited on
behalf of the Holders of the Convertible Preferred Stock represented thereby
with the Registrar, at its New York office, as custodian for the Depositary, and
registered in the name of the Depositary or a nominee of the Depositary, duly
executed by the Corporation and countersigned and registered by the Registrar as
hereinafter provided. The aggregate number of shares represented by each Global
Preferred Share may from time to time be increased or decreased by adjustments
made on the records of the Registrar and the Depositary or its nominee as
hereinafter provided. This Section 17(a) shall apply only to a Global Preferred
Share deposited with or on behalf of the Depositary. The Corporation shall
execute and the Registrar shall, in accordance with this Section, countersign
and deliver initially one or more Global Preferred Shares that (i) shall be
registered in the name of Cede & Co. or other nominee of the Depositary and (ii)
shall be delivered by the Registrar to Cede & Co. or pursuant to instructions
received from Cede & Co. or held by the Registrar as custodian for the
Depositary pursuant to an agreement between the Depositary and the Registrar.
Members of, or participants in, the Depositary ("Agent Members") shall have no
rights under this Certificate with respect to any Global Preferred Share held on
their behalf by the Depositary or by the Registrar as the custodian of the
Depositary or under such Global Preferred Share, and the Depositary may be
treated by the Corporation, the Registrar and any agent of the Corporation or
the Registrar as the absolute owner of such Global Preferred Share for all
purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent
the Corporation, the Registrar or any agent of the Corporation or the Registrar
from giving effect to any written certification, proxy or other authorization
furnished by the Depositary or impair, as between the Depositary and its Agent
Members, the operation of customary practices of the Depositary governing the
exercise of the rights of a holder of a beneficial interest in any Global
Preferred Share. Owners of beneficial interests in Global Preferred Shares shall
not be entitled to receive physical delivery of certificated shares representing
shares of the Convertible Preferred Stock unless (x) the Depositary is unwilling
or unable to continue as Depositary for the Global Preferred Share and the
Corporation does not appoint a qualified replacement for

<PAGE>
                                                                              22

the Depositary within 90 days, (y) the Depositary ceases to be a "clearing
agency" registered under the Exchange Act or (z) the Corporation decides to
discontinue the use of book-entry transfer through the Depositary (or any
successor Depositary). In any such case, the Global Preferred Share shall be
exchanged in whole for definitive shares of Convertible Preferred Stock in
registered form, with the same terms and of an equal aggregate Liquidation
Preference. Definitive shares of Convertible Preferred Stock shall be registered
in the name or names of the Person or Person specified by the Depositary in a
written instrument to the Registrar.

                  (a) An Officer shall sign the Global Preferred Share for
the Corporation, in accordance with the Corporation's by-laws and applicable
law, by manual or facsimile signature.

                  (i) If an Officer whose signature is on a Global Preferred
         Share no longer holds that office at the time the Transfer Agent
         authenticates the Global Preferred Share, the Global Preferred Share
         shall be valid nevertheless.

                  (ii) A Global Preferred Share shall not be valid until an
         authorized signatory of the Transfer Agent manually countersigns Global
         Preferred Share. The signature shall be conclusive evidence that the
         Global Preferred Share has been authenticated under this Certificate.
         Each Global Preferred Share shall be dated the date of its
         authentication.

                  18. Miscellaneous. All notices referred to herein shall be in
writing, and, unless otherwise specified herein, all notices hereunder shall be
deemed to have been given upon the earlier of receipt thereof or three business
days after the mailing thereof if sent by registered or certified mail (unless
first-class mail shall be specifically permitted for such notice under the terms
of this Certificate) with postage prepaid, addressed: (i) if to the Corporation,
to its office at 11825 N. Pennsylvania Street, Carmel, Indiana 46032 (Attention:
the Secretary) or to the Transfer Agent at its Corporate Trust Office, or other
agent of the Corporation designated as permitted by this Certificate, or (ii) if
to any Holder of the Convertible Preferred Stock or holder of shares of Common
Stock, as the case may be, to such Holder at the address of such Holder as
listed in the stock record books of the Corporation (which may include the
records of any transfer agent for the Convertible Preferred Stock or Common
Stock, as the case may be) or (iii) to such other address as the Corporation or
any such Holder, as the case may be, shall have designated by notice similarly
given.

                  (a) The Corporation shall pay any and all stock transfer and
documentary stamp taxes that may be payable in respect of any issuance or
delivery of shares of Convertible Preferred Stock or shares of Common Stock or
other securities issued on account of Convertible Preferred Stock pursuant
hereto or certificates representing such shares or securities. The Corporation
shall not, however, be required to pay any such tax that may be payable in
respect of any transfer involved in the issuance or delivery of shares of
Convertible Preferred Stock or Common Stock or other securities in a name other
than that in which the shares of Convertible Preferred Stock with respect to
which such shares or other securities are issued or delivered were registered,
or in respect of any

<PAGE>

                                                                              23

payment to any person other than a payment to the registered holder thereof, and
shall not be required to make any such issuance, delivery or payment unless and
until the person otherwise entitled to such issuance, delivery or payment has
paid to the Corporation the amount of any such tax or has established, to the
satisfaction of the Corporation, that such tax has been paid or is not payable.

                  19. Definitions. Unless otherwise defined herein, capitalized
terms used in this Certificate shall have the following meanings:

                  "Accepted Purchased Shares" shall have the meaning set forth
in Section 14(a)(vi) hereof.

                  "Affiliate" shall have the meaning given to that term in Rule
405 of the Securities Act of 1933, as amended, or any successor rule thereunder.

                  "Agent Members" shall have the meaning set forth in Section
17(a) hereof.

                  "Applicable Market Value" means the average of the Closing
Prices of the Common Stock on each of the 20 consecutive Trading Days ending on
the third Trading Day immediately preceding the Mandatory Conversion Date.

                  "Bankruptcy Law" means Title 11, United States Code, or any
similar federal or state law for the relief of debtors.

                  "Board" shall have the meaning set forth in the Preamble
hereof.

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

                  "Cash Merger" shall have the meaning set forth in Section
10(a) hereof.

                  "Certificate of Incorporation" shall have the meaning set
forth in the Preamble hereof.

                  "Class A Preferred Stock" means the outstanding Class A Senior
Cumulative Convertible Exchangeable Preferred Stock of the Corporation.

                  "Closing Price" means, as of any date of determination, the
closing sale price or, if no closing sale price is reported, the last reported
sale price per share of the Common Stock on the New York Stock Exchange on that
date. If the Common Stock is not listed on the New York Stock Exchange on any
date of determination, the Closing Price of the Common Stock on any date of
determination means the closing sale price as reported in the composite
transactions for the principal U.S. securities exchange on which the Common
Stock is so listed or quoted, or if the Common Stock is not so listed or quoted
on a U.S. national or regional securities exchange but is quoted on the Nasdaq
National Market, as reported by the Nasdaq National Market, or, if no closing
price for the Common Stock is so reported, the last quoted bid price for the

<PAGE>

                                                                              24

Common Stock in the over-the-counter market as reported by the National
Quotation Bureau or similar organization or, if that bid price is not available,
the market value of the Common Stock on that date as determined by a nationally
recognized independent investment banking firm retained by the Corporation for
this purpose.

                  "Common Stock" as used in this Certificate means the
Corporation's Common Stock, par value $0.01 per share, as the same exists at the
date of filing of this Certificate relating to the Convertible Preferred Stock,
or any other class of stock resulting from successive changes or
reclassifications of such Common Stock consisting solely of changes in par
value, or from par value to no par value, or from no par value to par value.
However, subject to the provisions of Section 14(e), shares of Common Stock
issuable on conversion of shares of Convertible Preferred Stock shall include
only shares of the class designated as Common Stock of the Corporation at the
date of the filing of this instrument with the Secretary of State of the State
of Delaware or shares of any class or classes resulting from any
reclassification or reclassifications thereof and which have no preference in
respect of dividends or of amounts payable in the event of any voluntary or
involuntary liquidation, dissolution or winding up of the Corporation and which
are not subject to redemption by the Corporation; provided that if at any time
there shall be more than one such resulting class, the shares of each such class
then so issuable shall be substantially in the proportion which the total number
of shares of such class resulting from all such reclassifications bears to the
total number of shares of all classes resulting from all such reclassifications.

                  "Conversion Date" shall have the meaning set forth in Section
11(a) hereof.

                  "Conversion Rate" shall have the meaning set forth in Section
7(b) hereof.

                  "Convertible Preferred Stock" shall have the meaning set forth
in Section 1 hereof.

                  "Corporate Trust Office" means the principal corporate trust
office of the Transfer Agent at which, at any particular time, its corporate
trust business shall be administered.

                  "Corporation" shall have the meaning set forth in the Preamble
hereof.

                  "Current Market Price" per share of Common Stock on any date
means the average of the daily Closing Prices for the five consecutive Trading
Days preceding the earlier of the day preceding the date in question and the day
before the "ex-date" with respect to the issuance or distribution requiring such
computation. The term "ex-date," when used with respect to any issuance or
distribution, means the first date on which the Common Stock trades on the
applicable exchange or in the applicable market, regular way, without the right
to receive the issuance or distribution. For the purposes of determining the
adjustment to the Conversion Rate for the purposes of Section 14(a)(iv)(B)
hereof the Current Market Price per share of Common Stock means

<PAGE>

                                                                              25

the average of the Closing Prices over the first ten Trading Days commencing on
and including the fifth Trading Day following the "ex-date" for such
distribution.

                  "Custodian" means any receiver, trustee, assignee, liquidator,
custodian or similar official under any Bankruptcy Law.

                  "Depositary" means DTC or its nominee or any successor
appointed by the Corporation.

                  "DGCL" shall have the meaning set forth in the Preamble
hereof.

                  "Dividend Payment Date" means the 15th calendar day of
February, May, August and November of each year, or the following Business Day
if the 15th is not a Business Day.

                  "Dividend Period" means the period ending on the day before a
Dividend Payment Date and beginning on the preceding Dividend Payment Date or,
if there is no preceding Dividend Payment Date, on the Issue Date.

                  "DTC" means The Depository Trust Company.

                  "Early Conversion" shall have the meaning set forth in Section
8(a) hereof.

                  "Early Conversion Date" means the effective date of any early
conversion of Convertible Preferred Stock pursuant to Section 8 hereof.

                  "Exchange Property" shall have the meaning set forth in
Section 14(e) hereof.

                  "Expiration Time" shall have the meaning set forth in Section
14(a)(v) hereof.

                  "Fair Market Value" means (a) in the case of any Spin-Off, the
average of the closing sale prices of those securities over the first 10 Trading
Days commencing on and including the fifth Trading Day following the "ex-date"
with respect to such Spin-Off and (b) in all other cases the fair market value
as determined in good faith by the Board, whose determination shall be
conclusive and described in a resolution of the Board.

                  "Fixed Conversion Rates" means the Maximum Conversion Rate and
the Minimum Conversion Rate.

                  "Global Preferred Share" shall have the meaning set forth in
Section 17(a) hereof.

                  "Global Shares Legend" shall have the meaning set forth in
Section 17(a) hereof.

<PAGE>

                                                                              26

                  "Holder" means the person in whose name the shares of the
Convertible Preferred Stock are registered, which may be treated by the
Corporation and the Transfer Agent as the absolute owner of the shares of
Convertible Preferred Stock for the purpose of making payment and settling
conversions and for all other purposes.

                  "Initial Price" shall have the meaning set forth in Section
7(b)(ii) hereof.

                  "Issue Date" means the date of first issuance of the
Convertible Preferred Stock.

                  "Liquidation Preference" means, as to the Convertible
Preferred Stock, $25 per share.

                  "Mandatory Conversion Date" means May 15, 2007 or as otherwise
calculated pursuant to Section 10(b)(iii), or 14(e), as applicable.

                  "Maximum Conversion Rate" shall have the meaning set forth in
Section 7(b)(iii) hereof.

                  "Merger Early Conversion" shall have the meaning set forth in
Section 10(a) hereof.

                  "Merger Early Conversion Date" shall have the meaning set
forth in Section 10(b) hereof.

                  "Minimum Conversion Rate" shall have the meaning set forth in
Section 7(b)(i) hereof.

                  "Non-electing Share" shall have the meaning set forth in
Section 14(e) hereof.

                  "Nonpayment Event" shall have the meaning set forth in Section
5(d) hereof.

                  "Offer Expiration Time" shall have the meaning set forth in
Section 14(a)(vi) hereof.

                  "Officer's Certificate" means a certificate of the
Corporation, signed by any duly authorized officer of the Corporation.

                  "Parity Stock" means capital stock of the Corporation that
ranks pari passu with the Convertible Preferred Stock as to the payment of
dividends or the distribution of assets upon liquidation, dissolution or winding
up of the Corporation.

                  "Person" means a legal person, including any individual,
corporation, estate, partnership, joint venture, association, joint-stock
company, limited liability company or trust.

<PAGE>

                                                                              27

                  "Preferred Stock" shall have the meaning set forth in the
Preamble hereof.

                  "Preferred Stock Director" shall have the meaning set forth in
Section 5 hereof.

                  "Provisional Conversion Date" means the date fixed for
conversion of shares of Convertible Preferred Stock into shares of Common Stock
pursuant to Section 9 above or, if the Corporation shall default in the cash
payment of (1) an amount equal to any accrued and unpaid dividends on the shares
of Convertible Preferred Stock then outstanding (including any dividends
accumulated thereon), whether or not declared, and (2) the present value of all
remaining dividend payments on the shares of Convertible Preferred Stock then
outstanding, through and including the Mandatory Conversion Date, in connection
with such conversion on such date, the date the Corporation actually makes such
payment.

                  "Provisional Conversion Notice" shall have the meaning set
forth in Section 9(b) hereof.

                  "Provisional Conversion Notice Date" shall have the meaning
set forth in Section 9(a) hereof.

                  "Purchased Shares" shall have the meaning set forth in Section
14(a)(v) hereof.

                  "Record Date" means the 1st calendar day of the month in which
the applicable Dividend Payment Date falls.

                  "Record Holder" means the Holder of record of the Convertible
Preferred Stock as they appear on the stock books of the Corporation at the
close of business on a Record Date.

                  "Reorganization Event" shall have the meaning set forth in
Section 14(e) hereof.

                  "SEC" means the U.S. Securities and Exchange Commission.

                  "Senior Credit Agreement" means the Credit Agreement dated as
of September 10, 2003, among the Corporation, Bank of America, N.A., as agent,
and the other financial institutions party thereto, together with the documents
related thereto, as in effect on the Issue Date, as the same may be amended,
modified or replaced following the Issue Date.

                  "Senior Stock" means capital stock of the Corporation that by
its terms ranks senior to the Convertible Preferred Stock as to the payment of
dividends or the distribution of assets upon liquidation, dissolution or winding
up of the Corporation.

<PAGE>

                                                                              28

                  "Spin-Off" means a dividend or other distribution to all
holders of the Common Stock of shares of capital stock of any class or series,
or similar equity interests, of or relating to a subsidiary or other business
unit of the Corporation.

                  "Threshold Appreciation Price" shall have the meaning set
forth in Section 7(b) hereof.

                  "Trading Day" means a day on which the Common Stock:

                  (a) is not suspended from trading on any national or regional
         securities exchange or association or over-the-counter market at the
         close of business; and

                  (b) has traded at least once on the national or regional
         securities exchange or association or over-the-counter market that is
         the primary market for the trading of the Common Stock.

                  "Transfer Agent" means Wachovia Bank, N.A. acting as transfer
agent, registrar and paying agent for the Convertible Preferred Stock, and its
successors and assigns.

                  "Treasury Yield" means the yield to maturity at the time of
computation of U.S. Treasury securities with a constant maturity (as compiled
and published in the most recent Federal Reserve Statistical Release H.15 (519)
that has become publicly available at least two Business Days prior to the
Provisional Conversion Date (or, if such Statistical Release is no longer
published, any publicly available source for similar market data)) most nearly
equal to the then remaining term to the Mandatory Conversion Date; provided,
however, that if the then remaining term to the Mandatory Conversion Date is not
equal to the constant maturity of a U.S. Treasury security for which a weekly
average yield is given, the Treasury Yield shall be obtained by linear
interpolation (calculated to the nearest one-twelfth of a year) from the weekly
average yields of U.S. Treasury securities for which such yields are given,
except that if the then remaining term to the Mandatory Conversion Date is less
than one year, the weekly average yield on actually traded U.S. Treasury
securities adjusted to a constant maturity of one year shall be used.

                  "Voting Preferred Shares" shall have the meaning set forth in
Section 5(d) hereof.

<PAGE>
                                                                              29

                  IN WITNESS WHEREOF, the Corporation has caused this
Certificate of Designations to be duly executed by the undersigned this   day of
        , 2004.

                                      CONSECO, INC.

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

<PAGE>

                                                                       EXHIBIT A

          FORM OF [o]% MANDATORILY CONVERTIBLE PREFERRED STOCK, CLASS B

Number: ___                                                         ___  Shares

CUSIP NO.:

              [o]% Mandatorily Convertible Preferred Stock, Class B
                           (par value $0.01 per share)
                     (liquidation preference $25 per share)

                                       OF

                                  CONSECO, INC.

                                FACE OF SECURITY

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"),
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO. HAS AN INTEREST HEREIN.

                  TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR
THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN THE CERTIFICATE OF DESIGNATIONS REFERRED TO BELOW.

                  IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO
THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH
REGISTRAR AND TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT TRANSFER
COMPLIES WITH THE FOREGOING RESTRICTIONS.

                  CONSECO, INC., a Delaware corporation (the "Corporation"),
hereby certifies that Cede & Co. or registered assigns (the "Holder") is the
registered owner of fully paid and non-assessable shares of preferred stock of
the Corporation designated the [o]% Mandatorily Convertible Preferred Stock,
Class B, par value $0.01 per share and liquidation preference $25 per share (the
"Convertible Preferred Stock"). The shares of

<PAGE>

                                                                               2

Convertible Preferred Stock are transferable on the books and records of the
Registrar, in person or by a duly authorized attorney, upon surrender of this
certificate duly endorsed and in proper form for transfer. The designation,
rights, privileges, restrictions, preferences and other terms and provisions of
the Convertible Preferred Stock represented hereby are issued and shall in all
respects be subject to the provisions of the Certificate of Designations of the
Corporation dated [o], 2004, as the same may be amended from time to time in
accordance with its terms (the "Certificate of Designations"). Capitalized terms
used herein but not defined shall have the respective meanings given them in the
Certificate of Designations. The Corporation will provide a copy of the
Certificate of Designations to a Holder without charge upon written request to
the Corporation at its principal place of business.

                  Reference is hereby made to select provisions of the
Convertible Preferred Stock set forth on the reverse hereof, and to the
Certificate of Designations, which select provisions and the Certificate of
Designations shall for all purposes have the same effect as if set forth at this
place.

                  Upon receipt of this certificate, the Holder is bound by the
Certificate of Designations and is entitled to the benefits thereunder.

                  Unless the Transfer Agent's Certificate of Authentication
hereon has been properly executed, the shares of Convertible Preferred Stock
evidenced hereby shall not be entitled to any benefit under the Certificate of
Designations or be valid or obligatory for any purpose.

                  IN WITNESS WHEREOF, Conseco, Inc. has executed this
certificate as of the date set forth below.

                                      CONSECO, INC.

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

Dated:
       ---------------------------

<PAGE>

                 TRANSFER AGENT'S CERTIFICATE OF AUTHENTICATION

                  This is one of the certificates representing shares of
Convertible Preferred Stock referred to in the within mentioned Certificate of
Designations.

                                                                 ,
                                    ----------------------------
                                    as Transfer Agent

                                    By:
                                        ----------------------------------------
                                        Name:
                                        Title:  Authorized Signatory

Dated:
       --------------------------

<PAGE>

                               REVERSE OF SECURITY
                                  CONSECO, INC.

             [o] % Mandatorily Convertible Preferred Stock, Class B

                  Dividends on each share of Convertible Preferred Stock shall
be payable in cash at a rate per annum set forth on the face hereof or as
provided in the Certificate of Designations.

                  The shares of Convertible Preferred Stock shall be convertible
into the Corporation's Common Stock in the manner and according to the terms set
forth in the Certificate of Designations.

                  As required under Delaware law, the Corporation shall furnish
to any Holder upon request and without charge, a full summary statement of the
designations, voting rights, preferences, limitations and special rights of the
shares of each class or series authorized to be issued by the Corporation so far
as they have been fixed and determined.

<PAGE>

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned assigns and transfers the
shares of Convertible Preferred Stock evidenced hereby to:

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

--------------------------------------------------------------------------------
        (Insert assignee's social security or tax identification number)

--------------------------------------------------------------------------------
                    (Insert address and zip code of assignee)

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

and irrevocably appoints:_______________________________________________________
agent to transfer the shares of Convertible Preferred Stock evidenced hereby on
the books of the Transfer Agent and Registrar. The agent may substitute another
to act for him or her.

Date:
      --------------------------------

Signature:
           ---------------------------

                  (Sign exactly as your name appears on the other side of this
Convertible Preferred Stock Certificate)

Signature Guarantee:                             (1)
                     ----------------------------

(1) Signature must be guaranteed by an "eligible guarantor institution" (i.e., a
bank, stockbroker, savings and loan association or credit union) meeting the
requirements of the Registrar, which requirements include membership or
participation in the Securities Transfer Agents Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

<PAGE>

                    SCHEDULE OF EXCHANGES FOR GLOBAL SECURITY

                  The initial number of shares of Convertible Preferred Stock
represented by this Global Preferred Share shall be __________. The following
exchanges of a part of this Global Preferred Share have been made:

<Table>
<Caption>
<S>                     <C>                      <C>                      <C>                      <C>
Date of Exchange        Amount of decrease       Amount of increase       Number of shares         Signature of
                        in number of shares      in number of             represented by this      authorized officer
                        represented by this      shares represented       Global Preferred         of Registrar
                        Global Preferred         by this Global           Share following
                        Share                    Preferred Share          such increase or
                                                                          decrease
</Table><PAGE>
                                                                   EXHIBIT 10.33

                        SEPARATION AND RELEASE AGREEMENT

         THIS SEPARATION AND RELEASE AGREEMENT is entered into between Jon H.
Browne ("Employee"), and Whitehall Jewellers, Inc., a Delaware corporation
("Whitehall").

         WHEREAS, Whitehall and Employee are parties to that certain Employment
and Severance Agreement dated as of January 24, 2000 (the "Employment
Agreement").

         WHEREAS, Whitehall has been named a defendant in International
Diamonds, L.L.C., et al. v. Cosmopolitan Gem Corp., et al., Index No. 110101/03
(Sup. Ct., NY Cty.) (the "Capital Factors Action").

         WHEREAS, each of Whitehall and Employee is the subject of a criminal
investigation by the United States Attorney for the Eastern District of New York
regarding the subject matter of the Capital Factors Action and related matters
(the "US Attorney Investigation").

         WHEREAS, the United States Securities and Exchange Commission (the
"SEC") has initiated a formal inquiry into the matters that are the subject of
the Capital Factors Action (the "SEC Investigation" and together with the US
Attorney Investigation, the "Government Investigations").

         WHEREAS, in connection with Whitehall's internal investigation related
to the Capital Factors Action and the Government Investigations, Whitehall
notified Employee of his termination for Cause (as defined in the Employment
Agreement) and determined that it would not be appropriate to advance the legal
costs and expenses of Employee related to the Capital Factors Action or the
Government Investigations pursuant to the Second Restated Certificate of
Incorporation of Whitehall (the "Certificate") and the Amended and Restated
By-Laws of Whitehall (the "By-Laws").

         WHEREAS, Employee has executed a letter in favor of Whitehall dated
October 15, 2003 pursuant to which Employee undertook to repay all defense costs
advanced to him with respect to the US Attorney Investigation if it should be
ultimately determined that he was not entitled to indemnification pursuant to
the Certificate and the By-Laws.

         WHEREAS, Whitehall and Employee wish to resolve the disputes and
potential disputes by and between them with respect to (i) the indemnification
of Employee by Whitehall for his defense costs incurred or to be incurred by him
in defending the U.S. Attorney Investigation or the SEC Investigation, whether
pursuant to the Certificate and By-Laws or otherwise, (ii) the repayment by
Employee to Whitehall of defense costs advanced to Employee on or prior to the
date hereof, (iii) the indemnification of Employee by Whitehall, whether
pursuant to the Certificate and By-Laws or otherwise, with respect to the
Capital Factors Action and any other civil action relating to the subject matter
thereof and the Government Investigations and any other criminal action relating
to the subject matter thereof, and (iv) the grounds for the termination of
Employee under the Employment Agreement and amount owed to him

<PAGE>

thereunder, in each case, as set forth herein, and to avoid expensive and time
consuming arbitration and litigation.

         NOW, THEREFORE, in consideration of the premises and of the mutual
covenants, conditions and premises contained herein, the parties agree as
follows:

         1. WAIVER AND RELEASE:

            A. Except for breaches of this Agreement, Employee and each of his
past, present and future spouses, family, relatives, successors, heirs,
executors, administrators, trustees, agents, representatives, affiliates and
assigns and each and every person or entity that purports to assert rights or
claims through him or on his behalf (collectively, the "Employee Releasing
Parties"), individually and collectively, hereby fully, finally and forever
waive and unconditionally release, acquit and discharge each of Whitehall and
its past, present and future affiliates, employee benefit plans and programs and
other related entities (whether or not wholly owned) and the past, present and
future officers, directors, employees, agents, shareholders, trustees,
fiduciaries, administrators, attorneys and representatives of each of them, and
any other person or entity in privity with any of them (collectively, the
"Whitehall Released Parties") from, and covenant and agree not to sue any of the
Whitehall Released Parties with regard to any and all claims, whether currently
known or unknown, which Employee now has, ever has had or may ever have against
any of the Whitehall Released Parties arising from or related to:

            (i) Employee's employment the Whitehall or the termination thereof,
         including but not limited to claims of wrongful discharge; breach of
         contract; employment discrimination under the Civil Rights Act of 1866,
         Title VII of the Civil Rights Act of 1964, the Civil Rights Act of
         1991, the Age Discrimination in Employment Act, the Americans with
         Disabilities Act, the Rehabilitation Act of 1973, the Illinois Human
         Rights Act, the Chicago Human Rights Ordinance, and/or the Cook County
         Human Rights Ordinance, or any other statutory or common law causes of
         action;

            (ii) any demand, action, claim, liability, obligation, cost,
         expense, debt, cause of action, or lawsuit arising from or relating to
         the claims asserted in the Capital Factors Action or the Government
         Investigations or any other civil or criminal action arising from or
         relating to the subject matter thereof, including any claim for
         indemnification pursuant to the Certificate, the By-laws or the
         Delaware General Corporation Law, as the same exist or as they may be
         amended from time to time; and

            (iii) except as expressly contemplated hereby, the Employment
         Agreement, including any claim for any payment pursuant to section 4, 5
         or 7 thereof.

            B. Notwithstanding the generality of the foregoing, Employee does
not waive and/or release any rights that he may have to benefits under the
United HealthCare Options Preferred Provider Organization Plan, the Cigna Dental
PPO, Exec-U-Care Group Medical Reimbursement Insurance, the Whitehall Jewellers,
Inc. 401(k) Plan, the Whitehall Jewellers, Inc., 1997 Long-Term Incentive Plan
and grants thereunder, the Blanket Accident Insurance Program and the Voluntary
Long-Term Disability Plan (the "Plans") to which Employee may be entitled as a
result of his employment by Whitehall through the Termination Date; provided
that

                                      - 2 -
<PAGE>

for the purposes of determining what rights Employee has under any of the Plans,
the termination of the employment of Employee under the Employment Agreement
shall be deemed to have been for Cause and shall be a Nonqualifying Termination
thereunder.

            C. Except for breaches of this Agreement, Whitehall hereby fully,
finally and forever waives and unconditionally releases, acquits and discharges
Employee from, and covenants and agrees not to sue Employee with regard to any
and all claims which Whitehall now has, ever has had or may ever have against
Employee arising from or related to (i) any obligation of Employee to repay
amounts advanced to Employee for defense costs related to the Government
Investigations prior to the date hereof and (ii) any demand, action, claim,
liability, obligation, cost, expense, debt, cause of action, or lawsuit arising
from or relating to the claims asserted in the Capital Factors Action or the
Government Investigations.

            D. Employee and Whitehall represent and warrant to each other that
he/it has the full right and power to grant, execute, and deliver the releases,
undertakings and agreements contained in this Agreement. Whitehall represents
and warrants to Employee that as of the date hereof it does not have knowledge
of any claim that Whitehall has against Employee other than any claim arising
from or relating to the claims asserted in the Capital Factors Action or the
Government Investigations. For purposes of the preceding sentence, "knowledge"
shall mean the actual conscious awareness of the directors and executive
officers of Whitehall.

         2. EMPLOYEE'S TERMINATION DATE: Employee's employment with Whitehall
terminated effective December 25, 2003 (the "Termination Date") for all
purposes.

         3. PAYMENTS ON BEHALF OF EMPLOYEE: Whitehall agrees to advance
reasonable defense costs incurred by Employee in defending against the US
Attorney Investigation, the SEC Investigation, the Capital Factors Action or any
other civil or criminal action arising from the subject matter thereof up to a
maximum of $293,000 (such amount to include fees and expenses advanced prior to
the date hereof and fees and expenses advanced pursuant to Section 10.C.
below). Such costs shall be advanced by Whitehall only after receipt of copies
of appropriate invoices from Jenner & Block LLP or such other legal counsel of
national prominence as employee may retain.

         4. CONTINUED COOPERATION: Employee agrees to continue to cooperate with
Whitehall in connection with the Capital Factors Action, the Government
Investigations and Whitehall's internal investigation relating thereto,
including by making himself reasonably available for interviews. Nothing in this
Section 4 shall obligate Employee to incur any out-of-pocket expense, and
Whitehall agrees to pay all reasonable out-of-pocket expenses that Employee
incurs in providing any cooperation Whitehall may request. For purposes of
clarification, such out-of-pocket expenses shall not include attorneys' fees or
expenses, but shall include items such as travel expenses.

         5. BENEFIT CONTINUATION: Employee may elect to continue his group
health insurance, dental insurance, Exec-U-Care coverage and long-term
disability insurance with respect to Employee and his dependents for the
greatest of (i) the 12-month period following the

                                     - 3 -
<PAGE>

Termination Date, (ii) the period provided pursuant to the terms of the plan or
(iii) if the coverage or insurance is subject to COBRA, the COBRA continuation
period. In any case, for the 12-month period immediately following the
Termination Date (and only for such period), the costs of such continuation
shall be shared by Whitehall and Employee in the same proportion as such costs
were shared immediately prior to the Termination Date.

         6. DIRECTORS AND OFFICERS LIABILITY INSURANCE; INDEMNIFICATION:
Whitehall agrees that, notwithstanding the termination of Employee's employment
with Whitehall, Whitehall shall, for at least 3 years after the Date of
Termination, use all reasonable efforts to have Employee included as a named
insured or otherwise covered for actions or failure to act by Employee in his
capacity as a director or officer of Whitehall to at least the same extent as
other executive officers or directors, as the case may be, of Whitehall under
any directors or officers liability insurance policies maintained by Whitehall;
provided that the additional cost of providing coverage with a retroactive date
including Employee's period of service or with an extended reporting period or a
combination of both does not materially increase the cost of Whitehall's
directors and officers insurance. Whitehall agrees that it will not alter the
indemnification provisions in the Certificate or By-laws so as to give Employee
less protection thereunder with respect to periods during which Employee served
Whitehall as an executive officer or other employee as is afforded other
executive officers or peer employees, as the case may be, with respect to
periods during which they serve Whitehall.

         7. OTHER PAYMENTS OR BENEFITS: The parties understand and agree that
the Employee is entitled to no payments or benefits of any kind, other than
those set forth above.

         8. WITHHOLDING TAXES: Whitehall may withhold from all payments due to
Employee or to be paid on behalf of Employee hereunder all taxes which, by
applicable federal, state, local or other law, Whitehall is required to withhold
therefrom.

         9. DISCLOSURE: Employee acknowledges that Whitehall may file a copy of
this Agreement with the SEC and, therefore, that the terms hereof will be
publicly disclosed. Notwithstanding the preceding, Employee and Whitehall agree
not to disclose any information with respect to the negotiation of this
Agreement to any person other than Employee's spouse, his attorney, officers and
directors of Whitehall who have a need to know such information, or as may be
otherwise required by law or stock exchange rules.

         10. OTHER UNDERTAKINGS:

             A. Employee agrees that, during his employment with Whitehall, he
has had access to and/or has acquired confidential information of Whitehall and
its affiliates, including strategic and tactical business, financial, profit,
marketing, analytical and sales information, vendor pricing agreements and
contract details and internal organizational structure, and trade secrets
belonging to Whitehall ("Confidential Information"). Accordingly, Employee
agrees that he shall not directly or indirectly use, disclose, or take any
action that may result in the use by or disclosure to any person or entity of
any Confidential Information of Whitehall, unless such

                                     - 4 -
<PAGE>

information lawfully has become generally available to the public not as a
result of a breach of this Agreement by Employee, or except as otherwise
required by law.

             B. Employee shall not take any action, verbal or otherwise, that
would be reasonably likely to disparage or damage the reputation or operations
of Whitehall or any of the other Whitehall Released Parties.

             C. Subject to the limitations set forth in Section 3, Whitehall
shall reimburse Employee for reasonable legal fees and expenses incurred by
Employee for the review and/or negotiation by legal counsel of this Agreement.

         11. NON-ADMISSION: The parties agree that this Agreement is not
intended to and does not constitute any admission of fault, wrongdoing,
responsibility or liability on the part of Whitehall or Employee.

         12. ACKNOWLEDGMENTS: Employee hereby acknowledges that he is entering
into this Agreement knowingly and voluntarily, and further acknowledges that:

             A. this Agreement is written in a manner understood by Employee;

             B. this Agreement refers to and specifically waives claims under
the Age Discrimination in Employment Act, as amended, except to the extent that
such claims arise after the date of this Agreement;

             C. Employee has received valuable consideration, to which he would
not otherwise have been entitled, in exchange for the waiver and release of
claims included in this Agreement;

             D. Employee has been advised by Whitehall in writing to consult
with an attorney prior to executing this Agreement;

             E. Employee may take up to 21 days from receipt of this Agreement
to consider whether to sign the Agreement; and

             F. Employee shall have seven days following execution to revoke
this Agreement (in which case this Agreement shall be null and void and neither
Employee nor Whitehall shall any obligations under it), and the Agreement shall
not take effect until those seven days have expired.

         13. COMPLETE AGREEMENT: The parties agree that this Agreement
supersedes and renders null and void all previous agreements of any kind between
the parties, except as stated herein. The parties further agree that no promise
or inducement has been offered for this Agreement other than as set forth
herein.

                                     - 5 -
<PAGE>

         14. APPLICABLE LAW: The provisions of this Agreement shall be governed
by the laws of the State of Illinois.

         WHEREFORE, the parties have affixed their signatures below.

/s/ Jon H. Browne                           Whitehall Jewellers, Inc.
-----------------------------------
Signature of Employee

Jon H. Browne                               By: /s/ Hugh Patinkin
------------------------------------            --------------------------------
Printed Name of Employee                        Its: CEO
                                                    ----------------------------
          3/3/04                                                3/5/04
-------------------------------------       ------------------------------------
Dated                                       Dated

                                     - 6 -

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