Exhibit 4.1





Exhibit 4.1




TAX BENEFITS PRESERVATION RIGHTS AGREEMENT




DATED AS OF MARCH 3, 2011




BY AND BETWEEN




CAPITAL TRUST, INC.




AND




AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC




 


 









 







Table of Contents




	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Section 1. Certain Definitions
	 	 	1	 
	 
	 	 	 	 
	Section 2. Appointment of Rights Agent
	 	 	7	 
	 
	 	 	 	 
	Section 3. Issue of Right Certificates
	 	 	8	 
	 
	 	 	 	 
	Section 4. Form of Right Certificates
	 	 	9	 
	 
	 	 	 	 
	Section 5. Countersignature and Registration
	 	 	10	 
	 
	 	 	 	 
	Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates
	 	 	11	 
	 
	 	 	 	 
	Section 7. Exercise of Rights; Exercise Price; Expiration Date of Rights
	 	 	12	 
	 
	 	 	 	 
	Section 8. Cancellation and Destruction of Right Certificates
	 	 	14	 
	 
	 	 	 	 
	Section 9. Reservation and Availability of Preferred Stock
	 	 	14	 
	 
	 	 	 	 
	Section 10. Preferred Stock Record Date
	 	 	15	 
	 
	 	 	 	 
	Section 11. Adjustment of Exercise Price, Number and Kind of Shares or Number
of Rights
	 	 	16	 
	 
	 	 	 	 
	Section 12. Certificate of Adjusted Exercise Price or Number of Shares
	 	 	23	 
	 
	 	 	 	 
	Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power
	 	 	23	 
	 
	 	 	 	 
	Section 14. Fractional Rights and Fractional Shares
	 	 	25	 
	 
	 	 	 	 
	Section 15. Rights of Action
	 	 	26	 
	 
	 	 	 	 
	Section 16. Agreement of Right Holders
	 	 	26	 
	 
	 	 	 	 
	Section 17. Right Certificate Holder Not Deemed a Stockholder
	 	 	27	 
	 
	 	 	 	 
	Section 18. Concerning the Rights Agent
	 	 	27	 
	 
	 	 	 	 
	Section 19. Merger or Consolidation or Change of Name of Rights Agent
	 	 	28	 
	 
	 	 	 	 
	Section 20. Duties of Rights Agent
	 	 	28	 
	 
	 	 	 	 






 


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	 	 	Page	 
	 
	 	 	 	 
	Section 21. Change of Rights Agent
	 	 	30	 
	 
	 	 	 	 
	Section 22. Issuance of New Right Certificates
	 	 	31	 
	 
	 	 	 	 
	Section 23. Redemption
	 	 	31	 
	 
	 	 	 	 
	Section 24. Exchange
	 	 	32	 
	 
	 	 	 	 
	Section 25. Notice of Certain Events
	 	 	34	 
	 
	 	 	 	 
	Section 26. Notices
	 	 	35	 
	 
	 	 	 	 
	Section 27. Supplements and Amendments
	 	 	35	 
	 
	 	 	 	 
	Section 28. Successors
	 	 	36	 
	 
	 	 	 	 
	Section 29. Determinations and Actions by the Board of Directors
	 	 	36	 
	 
	 	 	 	 
	Section 30. Benefits of this Agreement
	 	 	36	 
	 
	 	 	 	 
	Section 31. Severability
	 	 	36	 
	 
	 	 	 	 
	Section 32. Governing Law
	 	 	37	 
	 
	 	 	 	 
	Section 33. Counterparts
	 	 	37	 
	 
	 	 	 	 
	Section 34. Descriptive Headings
	 	 	37	 
	 
	 	 	 	 
	Section 35. Force Majeure
	 	 	37	 
	 
	 	 	 	 
	Exhibit A — Articles Supplementary for Series A Junior Participating
Preferred Stock
	 	 	 	 
	 
	 	 	 	 
	Exhibit B — Form of Right Certificate
	 	 	 	 
	 
	 	 	 	 







 


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TAX BENEFITS PRESERVATION RIGHTS AGREEMENT




This Tax Benefits Preservation Rights Agreement, dated as of March 3, 2011 (as it may be
amended from time to time as provided herein, the “Agreement”), is entered into by and
between Capital Trust, Inc., a Maryland corporation (the “Company”), and American Stock
Transfer & Trust Company, LLC, a New York limited liability trust company (the “Rights
Agent” which term shall include any successor Rights Agent hereunder). Capitalized terms
contained herein and not otherwise defined shall have the meanings ascribed to them in Section 1.



W I T N E S S E T H




WHEREAS, the Company has generated Tax Benefits (as defined in Section 1 hereof) for United
States federal income tax purposes, and as such Tax Benefits may potentially provide valuable tax
benefits to the Company, the Company desires to avoid an “ownership change” within the meaning of
Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”) and the Treasury
Regulations promulgated thereunder, and thereby preserve the ability to utilize fully such Tax
Benefits and, in furtherance of such objective, the Company desires to enter into this Agreement;



WHEREAS, the Board of Directors of the Company (“Board of Directors”) has authorized,
and the Company declared, a dividend distribution of one Right (as defined below) for each share of
Common Stock outstanding as of the Close of Business on March 14, 2011 (the “Record Date”),
and authorized the issuance of one Right for each share of Common Stock of the Company issued
between the Record Date and the earlier of the Distribution Date or the Expiration Date, each Right
initially representing the right to purchase one one-thousandth of a share of Series A Junior
Participating Preferred Stock of the Company having the rights, powers and preferences set forth on
Exhibit A hereto, upon the terms and subject to the conditions hereinafter set forth (the
“Rights”); and



WHEREAS, the Company desires to appoint the Rights Agent to act as rights agent hereunder, in
accordance with the terms and conditions hereof.



NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth,
the parties hereby agree as follows:



Section 1. Certain Definitions. For purposes of this Agreement, the following terms have the
meanings indicated:



“Acquiring Person” shall mean any Person who or which, together with all Affiliates
and Associates of such Person, shall be the Beneficial Owner of 4.9% or more of the shares of
Common Stock of the Company then outstanding, but shall not include (i) the Company, (ii) any
Subsidiary of the Company, (iii) any employee benefit plan or compensation arrangement of the
Company or any Subsidiary of the Company, (iv) any Person holding shares of Common Stock of the
Company organized, appointed or established by the Company or any Subsidiary of the Company for or
pursuant to the terms of any such employee benefit plan or compensation arrangement (the Persons
described in clauses (i) through (iv) above are referred to herein as “Exempt Persons”), or
(v) any Grandfathered Person, unless such Grandfathered Person becomes the Beneficial Owner of a
percentage of the shares of Common Stock of the Company then outstanding equal to or exceeding such
Grandfathered Person’s
Grandfathered Percentage (at which such time such Grandfathered Person shall be deemed an
“Acquiring Person”).


 


 









 





Notwithstanding the foregoing, no Person shall become an “Acquiring Person” (i) as the result
of an acquisition by the Company of Common Stock of the Company which, by reducing the number of
shares outstanding, increases the proportionate number of shares Beneficially Owned by such Person
to 4.9% (or in the case of a Grandfathered Person, the Grandfathered Percentage applicable to such
Grandfathered Person) or more of the shares of Common Stock of the Company then outstanding;
provided, however, that if a Person shall become the Beneficial Owner of 4.9% (or
in the case of a Grandfathered Person, the Grandfathered Percentage applicable to such
Grandfathered Person) or more of the shares of Common Stock of the Company then outstanding by
reason of share purchases by the Company and shall, after such share purchases by the Company,
become the Beneficial Owner of any additional shares (other than pursuant to a stock split, stock
dividend or similar transaction) of Common Stock of the Company and immediately thereafter be the
Beneficial Owner of 4.9% (or in the case of a Grandfathered Person, the Grandfathered Percentage
applicable to such Grandfathered Person) or more of the shares of Common Stock of the Company then
outstanding, then such Person shall be deemed to be an “Acquiring Person,” (ii) who becomes the
Beneficial Owner of 4.9% or more of the outstanding shares of Common Stock as a result of the
acquisition of shares of Common Stock directly from the Company, as long as, prior to the
acquisition of shares of Common Stock directly from the Company, the Company has been apprised in
writing by any such Person of the number of shares of Common Stock Beneficially Owned by such
Person immediately prior to any such acquisition; provided, however, that if a
Person shall become the Beneficial Owner of 4.9% or more of the shares of Common Stock then
outstanding as a result of a direct purchase from the Company and shall, after that date, acquire
one or more additional shares of the Company’s Common Stock without the prior written consent of
the Company and shall then Beneficially Own more than 4.9% of the shares of Common Stock then
outstanding, then such Person shall be deemed to be an “Acquiring Person;” (iii) who becomes a
Beneficial Owner of 4.9% or more of the shares of Common Stock then outstanding and whose
Beneficial Ownership would not, as determined by the Board of Directors in its sole discretion,
jeopardize or endanger the availability to the Company of its Tax Benefits (a “Board Exempt
Person”); provided further, however, that if a Person is not an
Acquiring Person solely by reason of clause (iii) above, then such Person shall cease to be a Board
Exempt Person if (A) such Person ceases to Beneficially Own 4.9% or more of the shares of the then
outstanding Common Stock or (B) the Board of Directors, in its sole discretion, makes a contrary
determination with respect to the effect of such Person’s Beneficial Ownership with respect to the
availability to the Company of its Tax Benefits; and (iv) by virtue of the exercise (whether
partially or in full) of “Warrant No. 1,” issued by the Company on March 16, 2009 to JPMorgan Chase
Funding, Inc. to purchase (prior to any adjustments) 2,034,665 shares of the Company’s Common Stock
(“Warrant No. 1.”); provided, however, that if a Person shall become the Beneficial
Owner of 4.9% or more of the shares of Common Stock then outstanding as a result of the exercise of
Warrant No. 1 and shall, after that date, acquire one or more additional shares of the Company’s
Common Stock (other than through the full or partial exercise of Warrant No. 1) without the prior
written consent of the Company and shall then Beneficially Own more than 4.9% of the shares of
Common Stock then outstanding, then such Person shall be deemed to be an “Acquiring Person.”



In addition, notwithstanding the foregoing, and notwithstanding anything to the contrary
provided in this Agreement including without limitation in Sections 1, 3(a) or 27, a Person shall
not be an “Acquiring Person” if the Board of Directors determines at any time that a Person who
would otherwise be an “Acquiring Person,” has become such inadvertently without intending to become
an
“Acquiring Person,” and such Person divests (without exercising or retaining any power,
including, voting power, with respect to such securities) as promptly as practicable (or within
such period of time as the Board of Directors determines is reasonable) a sufficient number of
shares of Common Stock of the Company so that such Person would no longer be an “Acquiring Person.”



 


2









 







“Adjustment Shares” shall have the meaning set forth in Section 11(a)(ii) hereof.



“Affiliate” and “Associate” shall have the respective meanings ascribed to
such terms in Rule 12b-2 of the General Rules and Regulations (the “Rules”) under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), as in effect on the date
of this Agreement; and to the extent not included within the foregoing, shall also include with
respect to any Person, any other Person whose shares of Common Stock of the Company would be deemed
to be constructively owned by such Person, owned by a “single entity” as defined in Section
1.382-3(a)(1) of the Treasury Regulations, or otherwise aggregated with shares owned by such first
Person, pursuant to the provisions of the Code, or any successor or replacement provision, and the
Treasury Regulations thereunder; provided, however, that a Person shall not be
deemed to be the Affiliate or Associate of another Person solely because either or both Persons are
or were directors of the Company.



A Person shall be deemed the “Beneficial Owner” of, and shall be deemed to
“Beneficially Own” and have “Beneficial Ownership” of (or any derivative of such
phrases), any securities:



(i) which such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has the right to acquire (whether such right is exercisable immediately or only after
the passage of time) pursuant to any agreement, arrangement or understanding (whether or not in
writing) (including any purchase orders for shares of Common Stock initiated prior to the first
public announcement of the adoption of this Plan) or upon the exercise of conversion rights,
exchange rights, warrants, options, or other rights (in each case, other than upon exercise or
exchange of the Rights); provided, however, that a Person shall not be deemed the
Beneficial Owner of, or to Beneficially Own securities (including rights, options or warrants)
which are convertible or exchangeable into or exercisable for Common Stock until such time as such
securities are converted or exchanged into or exercised for Common Stock except to the extent the
acquisition or transfer of such rights, options or warrants would be treated as exercised on the
date of its acquisition or transfer under Section 1.382-4(d) of the Treasury Regulations;
provided, further, that a Person shall not be deemed the Beneficial Owner of, or to
Beneficially Own, securities tendered pursuant to a tender or exchange offer made by such Person or
any of such Person’s Affiliates or Associates until such tendered securities are accepted for
purchase or exchange;



(ii) which such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has or shares the right to vote or dispose of, or has “beneficial ownership” of (as
defined under Rule 13d-3 of the Rules), including pursuant to any agreement, arrangement or
understanding (whether or not in writing), but only if the effect of such agreement, arrangement or
understanding is to treat such Person or any of such Person’s Affiliates or Associates as an
“entity” under Section 1.382-3(a)(1) of the Treasury Regulations; or


 


3









 





(iii) of which any other Person is the Beneficial Owner, if such Person or any of such
Person’s Affiliates or Associates has any agreement, arrangement or understanding (whether or not
in writing) with such other Person (or any of such other Person’s Affiliates or Associates) with
respect to acquiring, holding, voting or disposing of such securities of the Company, but only if
the effect of such agreement, arrangement or understanding is to treat such Person or any of such
Person’s Affiliates or Associates as an “entity” under Section 1.382-3(a)(1) of the Treasury
Regulations; provided, however, that a Person shall not be deemed the Beneficial
Owner of, or to Beneficially Own, any security (A) if such Person has the right to vote such
security pursuant to an agreement, arrangement or understanding (whether or not in writing) which
(1) arises solely from a revocable proxy or consent given to such Person in response to a public
proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and
regulations promulgated under the Exchange Act and (2) is not also then reportable on Schedule 13D
or Schedule 13G under the Exchange Act (or any comparable or successor report), or (B) if such
Beneficial Ownership arises solely as a result of such Person’s status as a “clearing agency,” as
defined in Section 3(a)(23) of the Exchange Act; provided, further, that nothing in
this definition shall cause a Person engaged in business as an underwriter of securities or member
of a selling group to be the Beneficial Owner of, or to Beneficially Own, any securities acquired
through such Person’s participation in good faith in an underwriting syndicate or selling group
until the expiration of 40 calendar days after the date of such acquisition, or such later date as
the Board may determine in any specific case.



Notwithstanding anything herein to the contrary, to the extent not within the foregoing
provisions of this definition, a Person shall be deemed the Beneficial Owner of, and shall be
deemed to Beneficially Own or have Beneficial Ownership of, securities which such Person would be
deemed to constructively own or which otherwise would be aggregated with shares owned by such
Person pursuant to Section 382 of the Code, or any successor provision or replacement provision and
the Treasury Regulations thereunder.



“Board Exempt Person” shall have the meaning set forth in the definition of “Acquiring
Person.”



“Business Day” shall mean any day other than a Saturday, Sunday, or a day on which
banking institutions in the State of New York are authorized or obligated by law or executive order
to close.



“Charter” when used in reference to the Company shall mean the charter of the Company,
as may be amended or supplemented from time to time, of the Company.



“Close of Business” on any given date shall mean 5:00 p.m., New York, New York time,
on such date; provided, however, that if such date is not a Business Day it shall
mean 5:00 p.m., New York, New York time, on the next succeeding Business Day.




“Code” shall have the meaning set forth in the preamble to this Agreement.



“Common Stock” when used in reference to the Company shall mean the Class A Common
Stock, par value $0.01 per share, of the Company or any other shares of capital stock of the
Company into which such stock shall be reclassified or changed. “Common Stock” when used with
reference to any Person other than the Company organized in corporate form shall mean (i) the
capital
stock or other equity interest of such Person with the greatest voting power, (ii) the equity
securities or other equity interest having power to control or direct the management of such Person
or (iii) if such Person is a Subsidiary of another Person, the Person or Persons which ultimately
control such first-mentioned Person and which have issued any such outstanding capital stock,
equity securities or equity interest. “Common Stock” when used with reference to any Person not
organized in corporate form shall mean units of beneficial interest which (x) shall represent the
right to participate generally in the profits and losses of such Person (including without
limitation any flow-through tax benefits resulting from an ownership interest in such Person) and
(y) shall be entitled to exercise the greatest voting power of such Person or, in the case of a
limited partnership, shall have the power to remove or otherwise replace the general partner or
partners.


 


4









 





“Common Stock Equivalents” shall have the meaning set forth in Section 11(a)(iii)
hereof.




“Current Value” shall have the meaning set forth in Section 11(a)(iii) hereof.



“Definitive Acquisition Agreement” shall mean any agreement entered into by the
Company that is conditioned on the approval by the holders of not less than a majority of the
outstanding shares of Common Stock entitled to vote at a meeting of the stockholders called with
respect to (i) a merger, consolidation, recapitalization, reorganization, share exchange, business
combination or similar transaction involving the Company or (ii) the acquisition in any manner,
directly or indirectly, of more than 50% of the consolidated total assets (including, without
limitation, equity securities of its subsidiaries) or earning power of the Company.




“Depositary Agent” shall have the meaning set forth in Section 7(c) hereof.




“Distribution Date” shall have the meaning set forth in Section 3(a) hereof.




“Exchange Date” shall have the meaning set forth in Section 7(a) hereof.



“Equity Compensation Plan Shares” shall have the meaning set forth in the definition
of “Grandfathered Percentage.”



“Exempt Person” shall have the meaning set forth in the definition of “Acquiring
Person.”



“Exercise Price” shall mean, as of any date, the price at which a holder may purchase
securities issuable upon exercise of one whole Right. Until adjustment thereof in accordance with
the terms hereof, the Exercise Price shall equal $6.00.



“Expiration Date” and “Final Expiration Date” shall have the meanings set
forth in Section 7(a) hereof.



“Fair Market Value” of any securities or other property shall be as determined in
accordance with Section 11(d) hereof.


 


5









 





“Grandfathered Percentage” shall mean, with respect to any Grandfathered Person, the
percentage of the outstanding shares of Common Stock of the Company that such Grandfathered Person,
together with all Affiliates and Associates of such Grandfathered Person, Beneficially Owns as
of the Grandfathered Time, plus (i) an additional 1/4% and (ii) any shares of Common Stock issued
to a Grandfathered Person pursuant to the Company’s equity compensation plans (“Equity Compensation
Plan Shares”); provided, however, that, in the event any Grandfathered Person shall
sell, transfer, or otherwise dispose of any outstanding shares of Common Stock of the Company after
the Grandfathered Time, the Grandfathered Percentage shall, subsequent to such sale, transfer or
disposition, mean, with respect to such Grandfathered Person, the lesser of (i) the Grandfathered
Percentage as in effect immediately prior to such sale, transfer or disposition or (ii) the
percentage of outstanding shares of Common Stock of the Company that such Grandfathered Person
Beneficially Owns immediately following such sale, transfer or disposition, plus (a) an additional
1/4% and (b) any Equity Compensation Plan Shares granted to such Grandfathered Person subsequent to
such sale, transfer or disposition.



“Grandfathered Person” shall mean any Person who or which, together with all
Affiliates and Associates of such Person, is, as of the Grandfathered Time, the Beneficial Owner of
4.9% or more of the shares of Common Stock of the Company then outstanding. Notwithstanding
anything to the contrary provided in this Agreement, any Grandfathered Person who after the
Grandfathered Time becomes the Beneficial Owner of less than 4.9% of the shares of Common Stock of
the Company then outstanding shall cease to be a Grandfathered Person and shall be subject to all
of the provisions of this Agreement in the same manner as any Person who is not and was not a
Grandfathered Person.




“Grandfathered Time” shall mean 5:00 p.m., New York, New York time, on March 3, 2011.




“Group” shall have the meaning set forth in clause (b) of the definition of “Person.”



“Person” shall mean (a) an individual, a corporation, a partnership, a limited
liability company, an association, a joint stock company, a trust, a business trust, a government
or political subdivision, any unincorporated organization, or any other association or entity
including any successor (by merger or otherwise) thereof or thereto, and (b) a “group” as that term
is used for purposes of Section 13(d)(3) of the Exchange Act.



“Preferred Stock” shall mean shares of Series A Junior Participating Preferred Stock,
par value $0.01 per share, of the Company having the rights and preferences set forth in the form
of the articles supplementary attached hereto as Exhibit A.



“Preferred Stock Equivalents” shall have the meaning set forth in Section 11(b)
hereof.




“Principal Party” shall have the meaning set forth in Section 13(b) hereof.




“Record Date” shall have the meaning set forth in the Preamble of this Agreement.




“Redemption Date” shall have the meaning set forth in Section 7(a) hereof.




“Redemption Price” shall have the meaning set forth in Section 23 hereof.



“Registered Common Stock” shall have the meaning set forth in Section 13(b) hereof.


 


6









 






“Rights” shall have the meaning set forth in the Preamble of this Agreement.




“Right Certificates” shall have the meaning set forth in Section 3(a) hereof.



“Section 11(a)(ii) Event” shall have the meaning set forth in Section 11(a)(ii)
hereof.



“Section 11(a)(ii) Trigger Date” shall have the meaning set forth in Section
11(a)(iii) hereof.



“Section 13 Event” shall mean any event described in clauses (x), (y) or (z) of
Section 13(a) hereof.



“Section 24(a)(i) Exchange Ratio” shall have the meaning set forth in Section 24(a)(i)
hereof.



“Section 24(a)(ii) Exchange Ratio” shall have the meaning set forth in Section
24(a)(ii) hereof.




“Securities Act” shall mean the Securities Act of 1933, as amended.




“Spread” shall have the meaning set forth in Section 11(a)(iii) hereof.



“Stock Acquisition Date” shall mean the date of the first public announcement (which
for purposes of this definition shall include, without limitation, the issuance of a press release
or the filing of a publicly-available report or other document with the Securities and Exchange
Commission or any other governmental agency) by the Company, acting pursuant to a resolution
adopted by the Board of Directors, or by an Acquiring Person, subject in each case to the last
paragraph of the definition of “Acquiring Person,” that an Acquiring Person has become such
Acquiring Person.



“Subsidiary” shall mean, with reference to any Person, any corporation or other entity
of which securities or other ownership interests having ordinary voting power sufficient, in the
absence of contingencies, to elect a majority of the board of directors or other persons performing
similar functions of such corporation or other entity are at the time directly or indirectly
Beneficially Owned or otherwise controlled by such Person either alone or together with one or more
Affiliates of such Person.




“Substitution Period” shall have the meaning set forth in Section 11(a)(iii) hereof.



“Tax Benefits” shall mean the net operating loss carryovers, capital loss carryovers,
general business credit carryovers, alternative minimum tax credit carryovers, foreign tax credit
carryovers, any loss or deduction attributable to a “net unrealized built-in loss” within the
meaning of Section 382 of the Code, and the Treasury Regulations promulgated thereunder, of the
Company or any of its Subsidiaries.




“Triggering Event” shall mean any Section 11(a)(ii) Event or any Section 13 Event.



Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act
as agent for the Company in accordance with the terms and conditions hereof, and the Rights Agent
hereby accepts such appointment. The Company may from time to time appoint such Co-Rights Agents
as it may deem necessary or desirable. In the event the Company appoints one or more
Co-Rights Agents, the respective duties of the Rights Agent and any Co-Rights Agents shall be as
the Company shall determine. The Company shall give ten (10) days’ prior written notice to the
Rights Agent of the appointment of one or more Co-Rights Agents and the respective duties of the
Rights Agent and any such Co-Rights Agents. The Rights Agent shall have no duty to supervise, and
shall in no event be liable for, the acts or omissions of any such Co-Rights Agent.


 


7









 






Section 3. Issue of Right Certificates.



(a) From the date hereof until the earlier of (i) the Close of Business on the tenth calendar
day after the Stock Acquisition Date or (ii) the Close of Business on the tenth Business Day (or
such later calendar day, if any, as the Board of Directors may determine in its sole discretion)
after the date a tender or exchange offer by any Person, other than an Exempt Person, is first
published or sent or given within the meaning of Rule 14d-4(a) of the Exchange Act, or any
successor rule, if, upon consummation thereof, such Person could become the Beneficial Owner of
4.9% (or in the case of a Grandfathered Person, the Grandfathered Percentage applicable to such
Grandfathered Person) or more of the shares of Common Stock of the Company then outstanding
(including any such date which is after the date of this Agreement and prior to the issuance of the
Rights) (the earliest of such dates being herein referred to as the “Distribution Date”),
(x) the Rights will be evidenced (subject to the provisions of Section 3(b) hereof) by the
certificates for the Common Stock of the Company registered in the names of the holders of the
Common Stock of the Company (which certificates for Common Stock of the Company shall be deemed
also to be certificates for Rights) and not by separate certificates, and (y) the Rights will be
transferable only in connection with the transfer of the underlying shares of Common Stock of the
Company. As soon as practicable after the Distribution Date, the Rights Agent will, at the
Company’s expense send, by first-class, insured, postage prepaid mail, to each record holder of the
Common Stock of the Company as of the Close of Business on the Distribution Date, at the address of
such holder shown on the records of the Company, one or more certificates, in substantially the
form of Exhibit B hereto (the “Right Certificates”), evidencing one Right for each
share of Common Stock of the Company so held, subject to adjustment as provided herein. In the
event that an adjustment in the number of Rights per share of Common Stock of the Company has been
made pursuant to Section 11(o) hereof, the Company may make the necessary and appropriate rounding
adjustments (in accordance with Section 14(a) hereof) at the time of distribution of the Right
Certificates, so that Right Certificates representing only whole numbers of Rights are distributed
and cash is paid in lieu of any fractional Rights. As of and after the Close of Business on the
Distribution Date, the Rights will be evidenced solely by such Right Certificates.



(b) With respect to certificates for Common Stock of the Company issued prior to the Close of
Business on the Record Date, the Rights will be evidenced by such certificates for the Common Stock
of the Company on or until the Distribution Date (or the earlier redemption, expiration or
termination of the Rights), and the registered holders of the Common Stock of the Company also
shall be the registered holders of the associated Rights. Until the Distribution Date (or the
earlier redemption, expiration or termination of the Rights), the transfer of any of the
certificates for the Common Stock of the Company outstanding prior to the date of this Agreement
shall also constitute the transfer of the Rights associated with the Common Stock of the Company
represented by such certificate.


 


8









 





(c) Certificates for the Common Stock of the Company issued after the Record Date, but prior
to the earlier of the Distribution Date or the Expiration Date, shall be deemed also to be
certificates for Rights, and shall bear a legend, substantially in the form set forth below:




This certificate also evidences and entitles the holder hereof to certain Rights
as set forth in a Tax Benefits Preservation Rights Agreement between Capital Trust,
Inc. and American Stock Transfer & Trust Company, LLC (or any successor thereto), as
Rights Agent, dated as of March 3, 2011 as amended, restated, renewed, supplemented
or extended from time to time (the “Rights Agreement”), the terms of which
are hereby incorporated herein by reference and a copy of which is on file at the
principal offices of Capital Trust, Inc. and the stock transfer administration office
of the Rights Agent. Under certain circumstances, as set forth in the Rights
Agreement, such Rights will be evidenced by separate certificates and will no longer
be evidenced by this certificate. Capital Trust, Inc. may redeem the Rights at a
redemption price of $0.001 per Right, subject to adjustment, under the terms of the
Rights Agreement. Capital Trust, Inc. will mail to the holder of this certificate a
copy of the Rights Agreement, as in effect on the date of mailing, without charge
promptly after receipt of a written request therefor. Under certain circumstances,
Rights issued to or held by Acquiring Persons or any Affiliates or Associates thereof
(as defined in the Rights Agreement), and any subsequent holder of such Rights, may
become null and void. The Rights shall not be exercisable, and shall be void so long
as held, by a holder in any jurisdiction where the requisite qualification, if any,
to the issuance to such holder, or the exercise by such holder, of the Rights in such
jurisdiction shall not have been obtained or be obtainable.



With respect to such certificates containing the foregoing legend, the Rights associated with
the Common Stock of the Company represented by such certificates shall be evidenced by such
certificates alone until the earlier of the Distribution Date or the Expiration Date, and the
transfer of any of such certificates shall also constitute the transfer of the Rights associated
with the Common Stock of the Company represented by such certificates. In the event that the
Company purchases or acquires any shares of Common Stock of the Company after the Record Date but
prior to the Distribution Date, any Rights associated with such Common Stock of the Company shall
be deemed canceled and retired so that the Company shall not be entitled to exercise any Rights
associated with the shares of Common Stock of the Company which are no longer outstanding. The
failure to print the foregoing legend on any such certificate representing Common Stock of the
Company or any defect therein shall not affect in any manner whatsoever the application or
interpretation of the provisions of Section 7(e) hereof.




Section 4. Form of Right Certificates.



(a) The Right Certificates (and the forms of election to purchase shares and of assignment and
certificate to be printed on the reverse thereof) shall each be substantially in the form of
Exhibit B hereto and may have such marks of identification or designation and such legends,
summaries or endorsements printed thereon as the Company may deem appropriate and as are not
inconsistent with the provisions of this Agreement, or as may be required to comply with any
applicable law, rule or regulation or with any rule or regulation of any stock exchange on which
the Rights may from time to time be listed, or to conform to customary usage. The Right
Certificates shall be in a machine printable format and in a form reasonably satisfactory to the
Rights Agent. Subject to the provisions of Section 11 and Section 22 hereof, the Right
Certificates, whenever distributed, shall be dated as of the Record
Date, shall show the date of countersignature, and on their face shall entitle the holders
thereof to purchase such number of one one-thousandths of a share of Preferred Stock as shall be
set forth therein at the Exercise Price, but the number of such shares and the Exercise Price shall
be subject to adjustment as provided herein.


 


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(b) Any Right Certificate issued pursuant to Section 3(a) or Section 22 hereof that represents
Rights Beneficially Owned by (i) an Acquiring Person or any Associate or Affiliate of an Acquiring
Person, (ii) a transferee of an Acquiring Person (or of any Associate or Affiliate of an Acquiring
Person) who becomes a transferee after the Acquiring Person becomes such, or (iii) a transferee of
an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or
concurrently with the Acquiring Person becoming such and receives such Rights pursuant to either
(A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity
interests in such Acquiring Person or to any Person with whom the Acquiring Person has any
continuing agreement, arrangement or understanding (whether or not in writing) regarding the
transferred Rights, the shares of Common Stock of the Company associated with such Rights or the
Company or (B) a transfer which the Board of Directors has determined is part of a plan,
arrangement or understanding which has as a primary purpose or effect the avoidance of Section 7(e)
hereof, and any Right Certificate issued pursuant to Section 6, Section 11 or Section 22 upon
transfer, exchange, replacement or adjustment of any other Right Certificate referred to in this
sentence, shall have deleted therefrom the second sentence of the existing legend on such Right
Certificate and in substitution therefor shall contain the following legend:




The Rights represented by this Right Certificate are or were Beneficially Owned by a
Person who was or became an Acquiring Person or an Affiliate or an Associate of an
Acquiring Person (as such terms are defined in the Rights Agreement). This Right
Certificate and the Rights represented hereby may become null and void under certain
circumstances as specified in Section 7(e) of the Rights Agreement.



The Company shall give notice to the Rights Agent promptly after it becomes aware of the
existence and identity of any Acquiring Person or any Associate or Affiliate thereof. The Company
shall instruct the Rights Agent in writing of the Rights which should be so legended. The failure
to print the foregoing legend on any such Right Certificate or any defect therein shall not affect
in any manner whatsoever the application or interpretation of the provisions of Section 7(e)
hereof.




Section 5. Countersignature and Registration.



(a) The Right Certificates shall be executed on behalf of the Company by its Chairman or Vice
Chairman of the Board of Directors, its President, any Vice President, Chief Executive Officer, its
Chief Operating Officer or its Chief Financial Officer, either manually or by facsimile signature,
and shall have affixed thereto the Company’s seal or a facsimile thereof which shall be attested to
by the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the Company,
either manually or by facsimile signature. The Right Certificates shall be countersigned, either
manually or by facsimile signature, by an authorized signatory of the Rights Agent and shall not be
valid for any purpose unless so countersigned, and such countersignature upon any Right Certificate
shall be conclusive evidence, and the only evidence, that such Right Certificate has been duly
countersigned as required hereunder. In case any officer of the Company who shall have signed any
of the Right Certificates shall cease to be such officer of the Company before countersignature by
the
Rights Agent and issuance and delivery by the Company, such Right Certificates, nevertheless,
may be countersigned by an authorized signatory of the Rights Agent, and issued and delivered by
the Company with the same force and effect as though the person who signed such Right Certificates
had not ceased to be such officer of the Company; and any Right Certificates may be signed on
behalf of the Company by any person who, at the actual date of the execution of such Right
Certificate, shall be a proper officer of the Company to sign such Right Certificate, although at
the date of the execution of this Rights Agreement any such person was not such an officer.


 


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(b) Following the Distribution Date, the Rights Agent will keep or cause to be kept, at one of
its offices designated as the appropriate place for surrender of Right Certificates upon exercise
or transfer, books for registration and transfer of the Right Certificates issued hereunder. Such
books shall show the names and addresses of the respective holders of the Right Certificates, the
number of Rights evidenced on its face by each of the Right Certificates and the date of each of
the Right Certificates.



Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated,
Destroyed, Lost or Stolen Right Certificates.



(a) Subject to the provisions of Section 4(b), Section 7(e) and Section 14 hereof, at any time
after the Close of Business on the Distribution Date, and at or prior to the Close of Business on
the Expiration Date, any Right Certificate or Certificates may be transferred, split up, combined
or exchanged for another Right Certificate or Certificates, entitling the registered holder to
purchase a like number of one one-thousandths of a share of Preferred Stock (or following a
Triggering Event, Common Stock of the Company, cash, property, debt securities, Preferred Stock or
any combination thereof, including any such securities, cash or property following a Section 13
Event) as the Right Certificate or Certificates surrendered then entitled such holder to purchase
and at the same Exercise Price. Any registered holder desiring to transfer, split up, combine or
exchange any Right Certificate shall make such request in writing delivered to the Rights Agent,
and shall surrender the Right Certificate or Certificates to be transferred, split up, combined or
exchanged, with the form of assignment and certificate duly executed, at the office or offices of
the Rights Agent designated for such purpose. Neither the Rights Agent nor the Company shall be
obligated to take any action whatsoever with respect to the transfer of any such surrendered Right
Certificate until the registered holder shall have completed and signed the certificate contained
in the form of assignment on the reverse side of such Right Certificate and shall have provided
such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or
Affiliates or Associates thereof as the Company shall reasonably request. Thereupon the Rights
Agent shall, subject to Section 4(b), Section 7(e) and Section 14 hereof, countersign and deliver
to the Person entitled thereto a Right Certificate or Certificates, as the case may be, as so
requested. The Company may require payment by the registered holder of a Right Certificate, of a
sum sufficient to cover any tax or governmental charge that may be imposed in connection with any
transfer, split up, combination or exchange of Right Certificates.



(b) Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to
them of the loss, theft, destruction or mutilation of a Right Certificate, and, in case of loss,
theft or destruction, of indemnity or security satisfactory to them, and reimbursement to the
Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to
the Rights Agent and cancellation of the Right Certificate, if mutilated, the Company will execute
and deliver a new Right Certificate of like tenor to the Rights Agent for countersignature and
delivery to the registered owner in lieu of the Right Certificate so lost, stolen, destroyed or
mutilated.


 


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Section 7. Exercise of Rights; Exercise Price; Expiration Date of Rights.



(a) Subject to Section 7(e) hereof, the registered holder of any Right Certificate may
exercise the Rights evidenced thereby (except as otherwise provided herein) in whole or in part at
any time after the Distribution Date upon surrender of the Right Certificate, with the form of
election to purchase and the certificate on the reverse side thereof duly executed, to the Rights
Agent at the office or offices of the Rights Agent designated for such purpose, together with
payment of the aggregate Exercise Price for the total number of one one-thousandths of a share of
Preferred Stock (or other securities, cash or other assets, as the case may be) as to which such
surrendered Rights are then exercised, at or prior to the earliest of (i) the Close of Business on
the third anniversary of the Record Date (the “Final Expiration Date”), (ii) the time at
which the Rights are redeemed as provided in Section 23 hereof (the “Redemption Date”) or
(iii) the time at which such Rights are exchanged as provided in Section 24 hereof (the
“Exchange Date”) (iv) the final adjournment of the Company’s 2011 annual meeting of
stockholders if stockholder approval of this Agreement has not been received prior to such time,
(v) the repeal of Section 382 of the Code or any successor statute if the Board determines that
this Plan is no longer necessary for the preservation of Tax Benefits, (vi) the beginning of a
taxable year of the Company with respect to which the Board determines that no Tax Benefits may be
carried forward, or (vii) such time as the Board determines that a limitation on the use of the Tax
Benefits under Section 382 of the Code would no longer be material to the Company (the earliest of
(i), through (vii) being herein referred to as the “Expiration Date”). The Board shall at least
annually consider whether to make the determination provided by Section 7(a)(vii) in light of all
relevant factors, including, in particular, the amount and anticipated utilization of the Company’s
Tax Benefits and the Company’s market capitalization. The Company shall promptly notify the Rights
Agent in writing upon the occurrence of the Expiration Date and, if such notification is given
orally, the Company shall confirm same in writing on or prior to the Business Day next following.
Until such notice is received by the Rights Agent, the Rights Agent may presume conclusively for
all purposes, prior to the Close of Business on March 14, 2014, that the Expiration Date has not
occurred. Except as set forth in Section 7(e) hereof and notwithstanding any other provision of
this Agreement, any Person who prior to the Distribution Date becomes a record holder of shares of
Common Stock of the Company is entitled to all of the rights of a registered holder of a Right
Certificate with respect to the Rights associated with such shares of Common Stock of the Company
in accordance with the provisions of this Agreement, as of the date such Person becomes a record
holder of shares of Common Stock of the Company.



(b) The Exercise Price shall be payable in lawful money of the United States of America in
accordance with Section 7(c) below.



(c) As promptly as practicable following the Distribution Date, the Company shall deposit with
a corporation, trust, bank or similar institution in good standing organized under the laws of the
United States or any State of the United States, which is authorized under such laws to exercise
corporate trust or stock transfer powers and is subject to supervision or examination by a federal
or state authority (such institution is hereinafter referred to as the “Depositary Agent”),
certificates representing the shares of Preferred Stock that may be acquired upon exercise of the
Rights and the Company shall cause such Depositary Agent to enter into an agreement pursuant to
which the Depositary Agent shall issue receipts representing interests in the shares of Preferred
Stock so deposited. Upon receipt of a Right Certificate representing exercisable Rights, with the
form of election to purchase and the certificate on the reverse side thereof duly executed,
accompanied by payment of the Exercise Price for the shares to be purchased and an amount equal to
any



 


12









 






applicable
transfer tax (as determined by the Rights Agent) by certified check or bank draft payable to the order of the Company or by money
order, the Rights Agent shall, subject to Section 20(k) and Section 14(b) hereof, thereupon
promptly (i) requisition from the Depositary Agent (or make available, if the Rights Agent is the
Depositary Agent) depositary receipts or certificates for the number of one one-thousandths of a
share of Preferred Stock to be purchased and the Company hereby irrevocably authorizes the
Depositary Agent to comply with all such requests, (ii) when appropriate, requisition from the
Company the amount of cash, if any, to be paid in lieu of issuance of fractional shares in
accordance with Section 14 hereof, (iii) promptly after receipt of such certificates or depositary
receipts, cause the same to be delivered to or upon the order of the registered holder of such
Right Certificate, registered in such name or names as may be designated by such holder and (iv)
when appropriate, after receipt of each certificate or depositary receipts promptly deliver such
cash to or upon the order of the registered holder of such Right Certificate. In the event that
the Company is obligated to issue other securities (including Common Stock of the Company) of the
Company, pay cash or distribute other property pursuant to Section 11(a) hereof, the Company will
make all arrangements necessary so that such other securities, cash or other property are available
for distribution by the Rights Agent, if and when appropriate. The payment of the Exercise Price
may be made by certified or bank check payable to the order of the Company, or by money order or
wire transfer of immediately available funds to the account of the Company (provided that notice of
such wire transfer shall be given by the holder of the related Right to the Rights Agent).



(d) In case the registered holder of any Right Certificate shall exercise less than all the
Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent to the Rights
remaining unexercised shall be issued by the Rights Agent and delivered to the registered holder of
such Right Certificate or to his duly authorized assigns, subject to the provisions of Section 14
hereof.



(e) Notwithstanding anything in this Agreement to the contrary, from and after the first
occurrence of a Section 11(a)(ii) Event or Section 13 Event, any Rights Beneficially Owned by (i)
an Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a transferee of an
Acquiring Person (or of any Associate or Affiliate of an Acquiring Person) who becomes a transferee
after the Acquiring Person becomes such or (iii) a transferee of an Acquiring Person (or of any
Associate or Affiliate of an Acquiring Person) who becomes a transferee prior to or concurrently
with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer
(whether or not for consideration) from the Acquiring Person to holders of equity interests in such
Acquiring Person or to any Person with whom the Acquiring Person has any continuing agreement,
arrangement or understanding regarding the transferred Rights, the shares of Common Stock of the
Company associated with such Rights or the Company, or (B) a transfer which the Board of Directors
has determined is part of a plan, arrangement or understanding which has as a primary purpose or
effect the avoidance of this Section 7(e), shall be null and void without any further action and no
holder of such Rights shall have any rights whatsoever with respect to such Rights, whether under
any provision of this Agreement or otherwise. The Company shall use all reasonable efforts to
ensure that the provisions of this Section 7(e) and Section 4(b) hereof are complied with, but
shall have no liability to any holder of Right Certificates or other Person as a result of its
failure to make any determinations with respect to an Acquiring Person or any Affiliates or
Associates of an Acquiring Person or any transferee of any of them hereunder.



(f) Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor
the Company shall be obligated to undertake any action with respect to a registered holder of
Rights upon the occurrence of any purported exercise as set forth in this Section 7 unless such
registered
holder shall have (i) completed and signed the certificate contained in the form of election
to purchase set forth on the reverse side of the Right Certificate surrendered for such exercise,
and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former
Beneficial Owner) or Affiliates or Associates thereof as the Company shall reasonably request.


 


13









 





Section 8. Cancellation and Destruction of Right Certificates. All Right Certificates
surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if
surrendered to the Company or any of its agents, be delivered to the Rights Agent for cancellation
or in canceled form, or, if surrendered to the Rights Agent, shall be canceled by it, and no Right
Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions
of this Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement,
and the Rights Agent shall so cancel and retire, any other Right Certificate purchased or acquired
by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all
canceled Right Certificates to the Company, or shall, at the written request of the Company,
destroy such cancelled Rights Certificates, and in such case shall deliver a certificate of
destruction thereof to the Company.




Section 9. Reservation and Availability of Preferred Stock.



(a) The Company covenants and agrees that it will cause to be reserved and kept available out
of its authorized and unissued shares of preferred stock, the number of shares of Preferred Stock
that will be sufficient to permit the exercise in full of all outstanding and exercisable Rights.
Upon the occurrence of any events resulting in an increase in the aggregate number of shares of
Preferred Stock issuable upon exercise of all outstanding Rights in excess of the number then
reserved, the Company shall make appropriate increases in the number of shares so reserved.



(b) The Company shall use commercially reasonable efforts to cause, from and after such time
as the Rights become exercisable, all shares of Preferred Stock issued or reserved for issuance to
be listed, upon official notice of issuance, upon the principal national securities exchange, if
any, upon which the Common Stock of the Company is listed or, if the principal market for the
Common Stock of the Company is not on any national securities exchange, to be eligible for
quotation on such system as the Common Stock is then quoted.



(c) The Company shall use commercially reasonable efforts to (i) file, as soon as practicable
following the earliest date after the occurrence of a Section 11(a)(ii) Event on which the
consideration to be delivered by the Company upon exercise of the Rights has been determined in
accordance with Section 11(a)(iii) hereof, or as soon as required by law following the Distribution
Date, as the case may be, a registration statement under the Securities Act, with respect to the
securities purchasable upon exercise of the Rights on an appropriate form, (ii) cause such
registration statement to become effective as soon as practicable after such filing and (iii) cause
such registration statement to remain effective (with a prospectus that at all times meets the
requirements of the Securities Act) until the earlier of (A) the date as of which the Rights are no
longer exercisable for such securities or (B) the Expiration Date. The Company will also take such
action as may be appropriate under, and which will ensure compliance with, the securities or “blue
sky” laws of the various states in connection with the exercisability of the Rights. The Company
may temporarily suspend, for a period of time not to exceed one hundred twenty (120) days after the
date determined in accordance with the provisions of the first sentence of this Section 9(c), the
exercisability of the Rights in order to prepare and file such registration statement and permit it
to become effective. Upon such suspension, the Company shall issue a public
announcement stating that the exercisability of the Rights has been temporarily suspended, as
well as a public announcement at such time as the suspension is no longer in effect, in each case
with prompt written notice to the Rights Agent. Notwithstanding any such provision of this
Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction unless the
requisite qualification in such jurisdiction shall have been obtained.


 


14









 





(d) The Company covenants and agrees that it will take all such action as may be necessary to
ensure that all shares of Preferred Stock delivered upon the exercise of the Rights shall, at the
time of delivery of the certificates or depositary receipts for such shares (subject to payment of
the Exercise Price), be duly and validly authorized and issued and fully paid and nonassessable.



(e) The Company further covenants and agrees that it will pay when due and payable any and all
federal and state transfer taxes and charges which may be payable in respect of the issuance or
delivery of the Right Certificates or of any certificates for shares of Preferred Stock and/or
other property upon the exercise of Rights. The Company shall not, however, be required to pay any
transfer tax which may be payable in respect of any transfer or delivery of Right Certificates or
the issuance or delivery of other securities or property to a Person other than, or in respect of
the issuance or delivery of securities or other property in a name other than that of, the
registered holder of the Right Certificates evidencing Rights surrendered for exercise or to issue
or deliver any certificates for securities or other property in a name other than that of the
registered holder upon the exercise of any Rights until such tax shall have been paid (any such tax
being payable by the holder of such Right Certificate at the time of surrender) or until it has
been established to the Company’s satisfaction that no such tax is due.



Section 10. Preferred Stock Record Date. Each Person in whose name any certificate for
Preferred Stock or other securities (including any fraction of a share of Preferred Stock or such
other securities) is issued upon the exercise of Rights shall for all purposes be deemed to have
become the holder of record of the shares of Preferred Stock or such other securities represented
thereby on, and such certificate shall be dated, the date upon which the Right Certificate
evidencing such Rights was duly surrendered and payment of the Exercise Price (and any applicable
transfer taxes) was made; provided, however, that if the date of such surrender and
payment is a date upon which the transfer books of the Company for the Preferred Stock or such
other securities, as applicable, are closed, such Person shall be deemed to have become the record
holder of such shares of Preferred Stock or such other securities on, and such certificate shall be
dated, the next succeeding Business Day on which the transfer books of the Company are open; and
further provided, however, that if delivery of shares of Preferred Stock or such
other securities is delayed pursuant to Section 9(c) hereof, such Person shall be deemed to have
become the record holder of such shares of Preferred Stock or such other securities only when such
shares or such other securities first become deliverable. Prior to the exercise of the Right
evidenced thereby, the holder of a Right Certificate shall not be entitled to any rights of a
stockholder of the Company with respect to shares for which the Rights shall be exercisable,
including, without limitation, the right to vote, to receive dividends or other distributions or to
exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings
of the Company, except as provided herein.


 


15









 





Section 11. Adjustment of Exercise Price, Number and Kind of Shares or Number of Rights. The
Exercise Price, the number and kind of shares covered by each Right and the number of Rights
outstanding are subject to adjustment from time to time as provided in this Section 11.



(a) (i) In the event the Company shall at any time after the date of this Agreement (A)
declare a dividend on the Preferred Stock payable in shares of Preferred Stock, (B) subdivide the
outstanding Preferred Stock, (C) combine the outstanding Preferred Stock into a smaller number of
shares, or (D) issue, change or alter any shares of its stock in a reclassification or
recapitalization of the Preferred Stock (including any such reclassification or recapitalization in
connection with a consolidation or merger in which the Company is the continuing or surviving
Person), except as otherwise provided in this Section 11(a) and Section 7(e) hereof, the Exercise
Price in effect at the time of the record date for such dividend or the effective time of such
subdivision, combination, reclassification or recapitalization, and the number and kind of shares
of stock issuable on such date or at such time, shall be proportionately adjusted so that the
holder of any Right exercised after such time shall be entitled to receive the aggregate number and
kind of shares of stock which, if such Right had been exercised immediately prior to such date and
at a time when the Preferred Stock transfer books of the Company were open, such holder would have
owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision,
combination, reclassification or recapitalization; provided, however, that in no
event shall the consideration to be paid upon the exercise of a Right be less than the aggregate
par value of the shares of stock of the Company issuable upon exercise of a Right. If an event
occurs which would require an adjustment under both Section 11(a)(i) and Section 11(a)(ii) hereof,
the adjustment provided for in this Section 11(a)(i) shall be in addition to, and shall be made
prior to, any adjustment required pursuant to Section 11(a)(ii) hereof.



(ii) Subject to the provisions of Section 24 hereof, in the event any Person, alone or
together with its Affiliates and Associates, shall become an Acquiring Person, then, promptly
following any such occurrence (a “Section 11(a)(ii) Event”), proper provision shall be made
so that each holder of a Right, except as provided in Section 7(e) hereof, shall thereafter have a
right to receive, upon exercise thereof at the then current Exercise Price in accordance with the
terms of this Agreement, in lieu of a number of one one-thousandths of a share of Preferred Stock,
such number of shares of Common Stock of the Company as shall equal the result obtained by (x)
multiplying the then current Exercise Price by the then number of one one-thousandths of a share of
Preferred Stock for which a Right was exercisable immediately prior to the first occurrence of a
Section 11(a)(ii) Event, whether or not such Right was then exercisable, and dividing that product
by (y) 50% of the Fair Market Value per share of Common Stock of the Company (determined pursuant
to Section 11(d)) on the date of the occurrence of a Section 11(a)(ii) Event (such number of shares
being referred to as the “Adjustment Shares”).



(iii) In lieu of issuing any shares of Common Stock of the Company in accordance with Section
11(a)(ii) hereof, the Company, acting by or pursuant to a resolution of the Board of Directors,
may, and in the event that the number of shares of Common Stock of the Company which are authorized
by the Company’s Charter but not outstanding or reserved for issuance for purposes other than upon
exercise of the Rights is not sufficient to permit the exercise in full of the Rights in accordance
with the foregoing subparagraph (ii) of this Section 11(a), the Company, acting by or pursuant to a
resolution of the Board of Directors, shall: (A) determine the excess of (X) the Fair Market Value
of the Adjustment Shares issuable upon the exercise of a Right (the “Current Value”) over
(Y) the Exercise Price attributable to each Right (such excess being referred to as the
“Spread”) and (B) with respect to all or a portion of each Right (subject to Section 7(e)
hereof), make adequate provision to substitute for the Adjustment Shares, upon payment of the
applicable Exercise Price, (1) Common Stock of the Company or equity securities, if any, of the
Company other than Common Stock of the Company (including without limitation shares, or units of
shares, of preferred stock, such as the Preferred



 


16









 






 Stock, that the Board of Directors has determined to have the same value as shares of Common Stock
of the Company (such shares of preferred stock being referred to herein as “Common Stock
Equivalents”)), (2) cash, (3) a reduction in the Exercise Price, (4) Preferred Stock
Equivalents which the Board of Directors has deemed to have the same value as shares of Common
Stock of the Company, (5) debt securities of the Company, (6) other assets or securities of the
Company or (7) any combination of the foregoing, having an aggregate value equal to the Current
Value, where such aggregate value has been determined by the Board of Directors after receiving the
advice of a nationally recognized investment banking firm selected by the Board of Directors;
provided, however, that if the Company shall not have made adequate provision to
deliver value pursuant to clause (B) above within thirty (30) days following the later of (x) the
first occurrence of a Section 11(a)(ii) Event and (y) the date on which the Company’s right of
redemption pursuant to Section 23(a) expires (the later of (x) and (y) being referred to herein as
the “Section 11(a)(ii) Trigger Date”), then the Company shall be obligated to deliver, upon
the surrender for exercise of a Right and without requiring payment of the Exercise Price, shares
of Common Stock of the Company (to the extent available) and then, if necessary, cash, which shares
and/or cash have an aggregate value equal to the Spread. If the Board of Directors shall determine
in good faith that it is likely that sufficient additional shares of Common Stock of the Company
could be authorized for issuance upon exercise in full of the Rights, the 30-day period set forth
above may be extended to the extent necessary, but not more than ninety (90) days after the Section
11(a)(ii) Trigger Date, in order that the Company may seek stockholder approval for the
authorization of such additional shares (such period, as it may be extended, being referred to
herein as the “Substitution Period”). To the extent that the Company determines that some
action need be taken pursuant to the first and/or second sentences of this Section 11(a)(iii), the
Company (x) shall provide, subject to Section 7(e) hereof, that such action shall apply uniformly
to all outstanding Rights and (y) may suspend the exercisability of the Rights until the expiration
of the Substitution Period in order to seek any authorization of additional shares and/or to decide
the appropriate form of distribution to be made pursuant to such first sentence and to determine
the value thereof. In the event of any such suspension, the Company shall issue a public
announcement stating that the exercisability of the Rights has been temporarily suspended and a
public announcement at such time as the suspension is no longer in effect. For purposes of this
Section 11(a)(iii), the value of the Common Stock of the Company and of the Preferred Stock shall
be the Fair Market Value (as determined pursuant to Section 11(d) hereof) per share of the Common
Stock of the Company and the Preferred Stock, respectively, on the Section 11(a)(ii) Trigger Date,
the value of any Common Stock Equivalent shall be deemed to have the same value as the Common Stock
of the Company on such date and the value of any Preferred Stock Equivalent shall be deemed to have
the same value as the Preferred Stock on such date.



(b) If the Company shall fix a record date for the issuance of rights, options or warrants to
all holders of Preferred Stock entitling them (for a period expiring within forty-five (45)
calendar days after such record date) to subscribe for or purchase Preferred Stock (or securities
having the same or more favorable rights, privileges and preferences as the shares of Preferred
Stock (“Preferred Stock Equivalents”)) or securities convertible into Preferred Stock or
Preferred Stock Equivalents at a price per share of Preferred Stock or per share of Preferred Stock
Equivalents (or having a conversion price per share, if a security convertible into Preferred Stock
or Preferred Stock Equivalents) less than the Fair Market Value (as determined pursuant to Section
11(d) hereof) per share of Preferred Stock on such record date, the Exercise Price to be in effect
after such record date shall be determined by multiplying the Exercise Price in effect immediately
prior to such record date by a fraction, the numerator of which shall be the number of shares of
Preferred Stock outstanding on such record date, plus the number of shares of Preferred Stock which
the aggregate offering price of



 


17









 






 the
total number of shares of Preferred Stock and/or Preferred Stock Equivalents to be offered (and the
aggregate initial conversion price of the convertible securities so to be offered) would purchase
at such Fair Market Value and the denominator of which shall be the number of shares of Preferred
Stock outstanding on such record date, plus the number of additional shares of Preferred Stock and
Preferred Stock Equivalents to be offered for subscription or purchase (or into which the
convertible securities so to be offered are initially convertible); provided,
however, that in no event shall the consideration to be paid upon the exercise of a Right
be less than the aggregate par value of the shares of stock of the Company issuable upon exercise
of a Right. In case such subscription price may be paid in a consideration part or all of which
shall be in a form other than cash, the value of such consideration shall be the Fair Market Value
thereof determined in accordance with Section 11(d) hereof. Shares of Preferred Stock owned by or
held for the account of the Company shall not be deemed outstanding for the purpose of any such
computation. Such adjustments shall be made successively whenever such a record date is fixed; and
in the event that such rights or warrants are not so issued, the Exercise Price shall be adjusted
to be the Exercise Price which would then be in effect if such record date had not been fixed.



(c) If the Company shall fix a record date for the making of a distribution to all holders of
Preferred Stock (including any such distribution made in connection with a consolidation or merger
in which the Company is the continuing or surviving corporation), of evidences of indebtedness,
cash (other than a regular periodic cash dividend out of the earnings or retained earnings of the
Company), assets (other than a dividend payable in Preferred Stock, but including any dividend
payable in stock other than Preferred Stock) or convertible securities, subscription rights or
warrants (excluding those referred to in Section 11(b)), the Exercise Price to be in effect after
such record date shall be determined by multiplying the Exercise Price in effect immediately prior
to such record date by a fraction, the numerator of which shall be the Fair Market Value (as
determined pursuant to Section 11(d) hereof) per one one-thousandth of a share of Preferred Stock
on such record date, less the Fair Market Value (as determined pursuant to Section 11(d) hereof) of
the portion of the cash, assets or evidences of indebtedness so to be distributed or of such
convertible securities, subscription rights or warrants applicable to one one-thousandth of a share
of Preferred Stock and the denominator of which shall be the Fair Market Value (as determined
pursuant to Section 11(d) hereof) per one one-thousandth of a share of Preferred Stock;
provided, however, that in no event shall the consideration to be paid upon the
exercise of a Right be less than the aggregate par value of the shares of stock of the Company
issuable upon exercise of a Right. Such adjustments shall be made successively whenever such a
record date is fixed; and in the event that such distribution is not so made, the Exercise Price
shall again be adjusted to be the Exercise Price which would be in effect if such record date had
not been fixed.



(d) For the purpose of this Agreement, the “Fair Market Value” of any share of
Preferred Stock, Common Stock or any other stock or any Right or other security or any other
property shall be determined as provided in this Section 11(d).



(i) In the case of a publicly-traded stock or other security, the Fair Market Value on any
date shall be deemed to be the average of the daily closing prices per share of such stock or per
unit of such other security for the 30 consecutive Trading Days (as such term is hereinafter
defined) immediately prior to such date; provided, however, that in the event that
the Fair Market Value per share of any share of stock is determined during a period following the
announcement by the issuer of such stock of (x) a dividend or distribution on such stock payable in
shares of such stock or securities convertible into shares of such stock or (y) any subdivision,
combination or reclassification of such stock, and prior to the expiration of the 30 Trading Day
period after the ex-dividend date for



 


18









 






such dividend or distribution, or the record date for such subdivision, combination or
reclassification, then, and in each such case, the Fair Market Value shall be properly adjusted to
take into account ex-dividend trading. The closing price for each day shall be the last sale
price, regular way, or, in case no such sale takes place on such day, the average of the closing
bid and asked prices, regular way, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to trading on the New
York Stock Exchange or, if the securities are not listed or admitted to trading on the New York
Stock Exchange, as reported in the principal consolidated transaction reporting system with respect
to securities listed on the principal national securities exchange on which such security is listed
or admitted to trading; or, if not listed or admitted to trading on any national securities
exchange, the last quoted price (or, if not so quoted, the average of the last quoted high bid and
low asked prices) in the over-the-counter market, as reported by the OTC Bulletin Board, the Pink
Sheets or such other system then in use; or, if on any such date no bids for such security are
quoted by any such organization, the average of the closing bid and asked prices as furnished by a
professional market maker making a market in such security selected by the Board of Directors. If
on any such date no market maker is making a market in such security, the Fair Market Value of such
security on such date shall be determined reasonably and with utmost good faith to the holders of
the Rights by the Board of Directors; provided, however, that if at the time of
such determination there is an Acquiring Person, the Fair Market Value of such security on such
date shall be determined by a nationally recognized investment banking firm selected by the Board
of Directors, which determination shall be described in a statement filed with the Rights Agent and
shall be binding on the Rights Agent and the holders of the Rights. The term “Trading Day”
shall mean a day on which the principal national securities exchange on which such security is
listed or admitted to trading is open for the transaction of business or, if such security is not
listed or admitted to trading on any national securities exchange, a Business Day.



(ii) If a security is not publicly held or not so listed or traded, “Fair Market
Value” shall mean the fair value per share of stock or per other unit of such security,
determined reasonably and in good faith to the holders of the Rights by the Board of Directors;
provided, however, that if at the time of such determination there is an Acquiring
Person, the Fair Market Value of such security on such date shall be determined by a nationally
recognized investment banking firm selected by the Board of Directors, which determination shall be
described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and
the holders of the Rights; provided, however, that for the purposes of making any
adjustment provided for by Section 11(a)(ii) hereof, the Fair Market Value of a share of Preferred
Stock shall not be less than the product of the then Fair Market Value of a share of Common Stock
multiplied by the higher of the then Dividend Multiple or Vote Multiple (as both of such terms are
defined in the articles supplementary attached as Exhibit A hereto) applicable to the
Preferred Stock and shall not exceed 105% of the product of the then Fair Market Value of a share
of Common Stock multiplied by the higher of the then Dividend Multiple or Vote Multiple applicable
to the Preferred Stock.



(iii) In the case of property other than securities, the Fair Market Value thereof shall be
determined reasonably and in good faith to the holders of Rights by the Board of Directors;
provided, however, that if at the time of such determination there is an Acquiring
Person, the Fair Market Value of such property on such date shall be determined by a nationally
recognized investment banking firm selected by the Board of Directors, which determination shall be
described in a statement filed with the Rights Agent and shall be binding upon the Rights Agent and
the holders of the Rights.


 


19









 





(e) Anything herein to the contrary notwithstanding, no adjustment in the Exercise Price shall
be required unless such adjustment would require an increase or decrease of at least 1.0% in the
Exercise Price; provided, however, that any adjustments which by reason of this
Section 11(e) are not required to be made shall be carried forward and taken into account in any
subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent or
to the nearest one-millionth of a share of Common Stock of the Company or hundred-millionth of a
share of Preferred Stock, as the case may be, or to such other figure as the Board of Directors may
deem appropriate. Notwithstanding the first sentence of this Section 11(e), any adjustment
required by this Section 11 shall be made no later than the earlier of (i) three (3) years from the
date of the transaction which mandates such adjustment or (ii) the Expiration Date.



(f) If as a result of any provision of Section 11(a) or Section 13(a) hereof, the holder of
any Right thereafter exercised shall become entitled to receive any shares of stock of the Company
other than Preferred Stock, thereafter the number of such other shares so receivable upon exercise
of any Right shall be subject to adjustment from time to time in a manner and on terms as nearly
equivalent as practicable to the provisions with respect to the Preferred Stock contained in
Section 11(a), (b), (c), (d), (e), (g) through (k) and (m), inclusive, and the provisions of
Sections 7, 9, 10, 13 and 14 hereof with respect to the Preferred Stock shall apply on like terms
to any such other shares.



(g) All Rights originally issued by the Company subsequent to any adjustment made to the
Exercise Price hereunder shall evidence the right to purchase, at the adjusted Exercise Price, the
number of one one-thousandths of a share of Preferred Stock (or other securities or amount of cash
or combination thereof) purchasable from time to time hereunder upon exercise of the Rights, all
subject to further adjustment as provided herein.



(h) Unless the Company shall have exercised its election as provided in Section 11(i), upon
each adjustment of the Exercise Price as a result of the calculations made in Section 11(b) and
(c), each Right outstanding immediately prior to the making of such adjustment shall thereafter
evidence the right to purchase, at the adjusted Exercise Price, that number of one one-thousandths
of a share of Preferred Stock (calculated to the nearest hundred-millionth) as the Board of
Directors determines is appropriate to preserve the economic value of the Rights, including, by way
of example, that number obtained by (i) multiplying (x) the number of one one-thousandths of a
share of Preferred Stock for which a Right may be exercisable immediately prior to this adjustment
by (y) the Exercise Price in effect immediately prior to such adjustment of the Exercise Price and
(ii) dividing the product so obtained by the Exercise Price in effect immediately after such
adjustment of the Exercise Price.



(i) The Company may elect on or after the date of any adjustment of the Exercise Price to
adjust the number of Rights, in substitution for any adjustment in the number of shares of
Preferred Stock purchasable upon the exercise of a Right. Each of the Rights outstanding after the
adjustment in the number of Rights shall be exercisable for the number of one one-thousandths of a
share of Preferred Stock for which a Right was exercisable immediately prior to such adjustment.
Each Right held of record prior to such adjustment of the number of Rights shall become that number
of Rights (calculated to the nearest one-millionth) obtained by dividing the Exercise Price in
effect immediately prior to adjustment of the Exercise Price by the Exercise Price in effect
immediately after adjustment of the Exercise Price. The Company shall make a public announcement
of its election to adjust the number of Rights, indicating the record date for the adjustment, and,
if known at the time, the amount of the adjustment to be made. This record date may



 


20









 






be the date on
which the Exercise Price is adjusted or any day thereafter, but, if the Right Certificates have been issued, shall be at
least ten (10) days later than the date of the public announcement. If Right Certificates have
been issued, upon each adjustment of the number of Rights pursuant to this Section 11(i), the
Company shall, as promptly as practicable, cause to be distributed to holders of record of Right
Certificates on such record date Right Certificates evidencing, subject to Section 14 hereof, the
additional Rights to which such holders shall be entitled as a result of such adjustment, or, at
the option of the Company, shall cause to be distributed to such holders of record in substitution
and replacement for the Right Certificates held by such holders prior to the date of adjustment,
and upon surrender thereof, if required by the Company, new Right Certificates evidencing all the
Rights to which such holders shall be entitled after such adjustment. Right Certificates so to be
distributed shall be issued, executed and countersigned in the manner provided for herein (and may
bear, at the option of the Company, the adjusted Exercise Price) and shall be registered in the
names of the holders of record of Right Certificates on the record date specified in the public
announcement.



(j) Irrespective of any adjustment or change in the Exercise Price or the number of one
one-thousandths of a share of Preferred Stock issuable upon the exercise of the Rights, the Right
Certificates theretofore and thereafter issued may continue to express the Exercise Price per share
and the number of shares which were expressed in the initial Right Certificates issued hereunder
without prejudice to any adjustment or change.



(k) Before taking any action that would cause an adjustment reducing the Exercise Price below
the then aggregate par value, if any, of the number of one one-thousandths of a share of Preferred
Stock issuable upon exercise of the Rights, the Company shall take any corporate action which may,
in the opinion of its counsel, be necessary in order that the Company may validly and legally issue
fully paid and nonassessable shares of Preferred Stock at such adjusted Exercise Price.



(l) In any case in which this Section 11 shall require that an adjustment in the Exercise
Price be made effective as of a record date for a specified event, the Company may elect to defer
until the occurrence of such event the issuing to the holder of any Right exercised after such
record date the number of one one-thousandths of a share of Preferred Stock or other stock or
securities of the Company, if any, issuable upon such exercise over and above the number of one
one-thousandths of a share of Preferred Stock and other stock or securities of the Company, if any,
issuable upon such exercise on the basis of the Exercise Price in effect prior to such adjustment;
provided, however, that the Company shall deliver to such holder a due bill or
other appropriate instrument evidencing such holder’s right to receive such additional shares upon
the occurrence of the event requiring such adjustment.



(m) Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled
to make such reductions in the Exercise Price, in addition to those adjustments expressly required
by this Section 11, as and to the extent that in its good faith judgment the Board of Directors
shall determine to be advisable in order that any consolidation or subdivision of the Preferred
Stock, issuance wholly for cash of any shares of Preferred Stock at less than the Fair Market
Value, issuance wholly for cash of shares of Preferred Stock or securities which by their terms are
convertible into or exchangeable for shares of Preferred Stock, stock dividends or issuance of
rights, options or warrants referred to hereinabove in this Section 11, hereafter made by the
Company to holders of its Preferred Stock, shall not be taxable to such stockholders.


 


21









 





(n) The Company covenants and agrees that it shall not, at any time after the Distribution
Date and so long as the Rights have not been redeemed pursuant to Section 23 hereof or exchanged
pursuant to Section 24 hereof, (i) consolidate with (other than a Subsidiary of the Company in a
transaction that complies with the proviso at the end of this sentence), (ii) merge with or into,
or (iii) sell or transfer (or permit any Subsidiary to sell or transfer), in one transaction or a
series of related transactions, assets or earning power aggregating 50% or more of the assets or
earning power of the Company and its Subsidiaries taken as a whole, to any other Person or Persons
(other than the Company and/or any of its Subsidiaries in one or more transactions each of which
complies with the proviso at the end of this sentence) if (x) at the time of or immediately after
such consolidation, merger or sale there are any rights, warrants or other instruments outstanding
or agreements or arrangements in effect which would substantially diminish or otherwise eliminate
the benefits intended to be afforded by the Rights, or (y) prior to, simultaneously with or
immediately after such consolidation, merger or sale the stockholders of a Person who constitutes,
or would constitute, the “Principal Party” for the purposes of Section 13(a) hereof shall have
received a distribution of Rights previously owned by such Person or any of its Affiliates and
Associates; provided, however, that, subject to the following sentence, this
Section 11(n) shall not affect the ability of any Subsidiary of the Company to consolidate with, or
merge with or into, or sell or transfer assets or earning power to, any other Subsidiary of the
Company. The Company further covenants and agrees that after the Distribution Date it will not,
except as permitted by Section 23 or Section 27 hereof, take (or permit any Subsidiary to take) any
action if at the time such action is taken it is reasonably foreseeable that such action will
substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights.



(o) Notwithstanding anything in this Agreement to the contrary, in the event the Company shall
at any time after the date of this Agreement and prior to the Distribution Date (i) declare or pay
any dividend on the outstanding Common Stock of the Company payable in shares of Common Stock of
the Company or (ii) effect a subdivision, combination or consolidation of the outstanding shares of
Common Stock of the Company (by reclassification or otherwise than by payment of dividends in
shares of Common Stock of the Company) into a greater or lesser number of shares of Common Stock of
the Company, then in any such case (A) the number of one one-thousandths of a share of Preferred
Stock purchasable after such event upon proper exercise of each Right shall be determined by
multiplying the number of one one-thousandths of a share of Preferred Stock so purchasable
immediately prior to such event by a fraction, the numerator of which is the number of shares of
Common Stock of the Company outstanding immediately prior to such event and the denominator of
which is the number of shares of Common Stock of the Company outstanding immediately after such
event, and (B) each share of Common Stock of the Company outstanding immediately after such event
shall have issued with respect to it that number of Rights which each share of Common Stock of the
Company outstanding immediately prior to such event had issued with respect to it. The adjustments
provided for in this Section 11(o) shall be made successively whenever such a dividend is declared
or paid or such a subdivision, combination or consolidation is effected.



(p) The exercise of Rights under Section 11(a)(ii) shall only result in the loss of rights
under Section 11(a)(ii) to the extent so exercised and neither such exercise nor any exchange of
Rights pursuant to Section 24 shall otherwise affect the rights of holders of Right Certificates
under this Rights Agreement, including rights to purchase securities of the Principal Party
following a Section 13 Event which has occurred or may thereafter occur, as set forth in Section 13
hereof. Upon exercise of a Right Certificate under Section 11(a)(ii), the Rights Agent shall
return such Right Certificate duly marked to indicate that such exercise has occurred.


 


22









 





Section 12. Certificate of Adjusted Exercise Price or Number of Shares. Whenever an
adjustment is made as provided in Section 11 or Section 13 hereof, the Company shall (a) promptly
prepare a certificate setting forth such adjustment and a brief statement of the facts accounting
for such adjustment, (b) promptly file with the Rights Agent and with each transfer agent for the
Preferred Stock and the Common Stock of the Company a copy of such certificate and (c) mail a brief
summary thereof to each holder of a Right Certificate (or, if prior to the Distribution Date, to
each holder of a certificate representing shares of Common Stock of the Company) in accordance with
Section 26 hereof. The Rights Agent shall be fully protected in relying on any such certificate
and on any adjustment contained therein and shall not be deemed to have knowledge of any such
adjustment unless and until it shall have received such certificate.




Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power.



(a) In the event that, following the Stock Acquisition Date, directly or indirectly, (x) the
Company shall consolidate with, or merge with and into, any other Person (other than a Subsidiary
of the Company in a transaction which is not prohibited by Section 11(n) hereof), and the Company
shall not be the continuing or surviving corporation of such consolidation or merger, (y) any
Person (other than a Subsidiary of the Company in a transaction which is not prohibited by the
proviso at the end of the first sentence of Section 11(n) hereof) shall consolidate with the
Company, or merge with and into the Company and the Company shall be the continuing or surviving
corporation of such merger and, in connection with such merger, all or part of the shares of Common
Stock of the Company shall be changed into or exchanged for stock or other securities of any other
Person or cash or any other property, or (z) the Company shall sell, mortgage or otherwise transfer
(or one or more of its Subsidiaries shall sell, mortgage or otherwise transfer), in one transaction
or a series of related transactions, assets or earning power aggregating 50% or more of the assets
or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or
Persons (other than the Company or any Subsidiary of the Company in one or more transactions, each
of which is not prohibited by the proviso at the end of the first sentence of Section 11(n)
hereof), then, and in each such case, proper provision shall be made so that: (i) each holder of a
Right, except as provided in Section 7(e) hereof, shall have the right to receive, upon the
exercise thereof at the then current Exercise Price in accordance with the terms of this Agreement,
such number of validly authorized and issued, fully paid and nonassessable shares of freely
tradable Common Stock of the Principal Party (as hereinafter defined in Section 13(b)), free and
clear of rights of call or first refusal, liens, encumbrances, transfer restrictions or other
adverse claims, as shall be equal to the result obtained by (1) multiplying the then current
Exercise Price by the number of one one-thousandths of a share of Preferred Stock for which a Right
is exercisable immediately prior to the first occurrence of a Section 13 Event (without taking into
account any adjustment previously made pursuant to Section 11(a)(ii) or 11(a)(iii) hereof), and
dividing that product by (2) 50% of the Fair Market Value (determined pursuant to Section 11(d)
hereof) per share of the Common Stock of such Principal Party on the date of consummation of such
consolidation, merger, sale or transfer; (ii) such Principal Party shall thereafter be liable for,
and shall assume, by virtue of such consolidation, merger, sale, mortgage or transfer, all the
obligations and duties of the Company pursuant to this Agreement; (iii) the term “Company” shall
thereafter be deemed to refer to such Principal Party, it being specifically intended that the
provisions of Section 11 hereof shall apply to such Principal Party; and (iv) such Principal Party
shall take such steps (including, but not limited to, the reservation of a sufficient number of
shares of its Common Stock to permit exercise of all outstanding Rights in accordance with this
Section 13(a) and the making of payments in cash and/or other securities in accordance with Section
11(a)(iii) hereof) in connection with such consummation as may be necessary
to assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably
may be, in relation to its shares of Common Stock thereafter deliverable upon the exercise of the
Rights.


 


23









 






(b) “Principal Party” shall mean



(i) in the case of any transaction described in clause (x) or (y) of the first sentence of
Section 13(a), the Person that is the issuer of any securities into which shares of Common Stock of
the Company are converted in such merger or consolidation, or, if there is more than one such
issuer, the issuer of Common Stock that has the highest aggregate Fair Market Value (determined
pursuant to Section 11(d)), and if no securities are so issued, the Person that is the other party
to the merger or consolidation, or, if there is more than one such Person, the Person the Common
Stock of which has the highest aggregate Fair Market Value (determined pursuant to Section 11(d));
and



(ii) in the case of any transaction described in clause (z) of the first sentence of Section
13(a), the Person that is the party receiving the greatest portion of the assets or earning power
transferred pursuant to such transaction or transactions, or, if each Person that is a party to
such transaction or transactions receives the same portion of the assets or earning power
transferred pursuant to such transaction or transactions or if the Person receiving the largest
portion of the assets or earning power cannot be determined, whichever Person the Common Stock of
which has the highest aggregate Fair Market Value (determined pursuant to Section 11(d));



provided, however, that in any such case described in clauses (i) or (ii) of
Section 13(b) hereof, (1) if the Common Stock of such Person is not at such time and has not been
continuously over the preceding 12-month period registered under Section 12 of the Exchange Act
(“Registered Common Stock”) or such Person is not a corporation, and such Person is a
direct or indirect Subsidiary or Affiliate of another Person who has Registered Common Stock
outstanding, “Principal Party” shall refer to such other Person; (2) if the Common Stock of such
Person is not Registered Common Stock or such Person is not a corporation, and such Person is a
direct or indirect Subsidiary of another Person but is not a direct or indirect Subsidiary of
another Person which has Registered Common Stock outstanding, “Principal Party” shall refer to the
ultimate parent entity of such first-mentioned Person; (3) if the Common Stock of such Person is
not Registered Common Stock or such Person is not a corporation, and such Person is directly or
indirectly controlled by more than one Person, and one or more of such other Persons has Registered
Common Stock outstanding, “Principal Party” shall refer to whichever of such other Persons is the
issuer of the Registered Common Stock having the highest aggregate Fair Market Value (determined
pursuant to Section 11(d)); and (4) if the Common Stock of such Person is not Registered Common
Stock or such Person is not a corporation, and such Person is directly or indirectly controlled by
more than one Person, and none of such other Persons has Registered Common Stock outstanding,
“Principal Party” shall refer to whichever ultimate parent entity is the corporation having the
greatest stockholders’ equity or, if no such ultimate parent entity is a corporation, “Principal
Party” shall refer to whichever ultimate parent entity is the entity having the greatest net
assets.


 


24









 





(c) The Company shall not consummate any such consolidation, merger, sale or transfer unless
prior thereto (x) the Principal Party shall have a sufficient number of authorized shares of its
Common Stock, which have not been issued or reserved for issuance, to permit the exercise in full
of the Rights in accordance with this Section 13, and (y) the Company and each Principal Party and
each other Person who may become a Principal Party as a result of such consolidation, merger, sale
or transfer shall have executed and delivered to the Rights Agent a supplemental agreement
providing for
the terms set forth in Section 13(a) and (b) and further providing that, as soon as
practicable after the date of any consolidation, merger, sale or transfer of assets mentioned in
Section 13(a), the Principal Party at its own expense will:



(i) prepare and file a registration statement under the Securities Act with respect to the
Rights and the securities purchasable upon exercise of the Rights on an appropriate form, cause
such registration statement to become effective as soon as practicable after such filing and cause
such registration statement to remain effective (with a prospectus that at all times meets the
requirements of the Securities Act) until the Expiration Date;



(ii) qualify or register the Rights and the securities purchasable upon exercise of the Rights
under the blue sky laws of such jurisdictions as may be necessary or appropriate;



(iii) list (or continue the listing of) the Rights and the securities purchasable upon
exercise of the Rights on a national securities exchange or meet the eligibility requirements for
listing on an automated quotation system or such other system on which the Common Stock of the
Company is then traded; and



(iv) deliver to holders of the Rights historical financial statements for the Principal Party
and each of its Affiliates which comply in all respects with the requirements for registration on
Form 10 under the Exchange Act.



(d) In case the Principal Party which is to be a party to a transaction referred to in this
Section 13 has a provision in any of its authorized securities or in its charter or By-laws or
other instrument governing its affairs, which provision would have the effect of (i) causing such
Principal Party to issue (other than to holders of Rights pursuant to this Section 13), in
connection with, or as a consequence of, the consummation of a transaction referred to in this
Section 13, shares of Common Stock of such Principal Party at less than the then current Fair
Market Value (determined pursuant to Section 11(d)) or securities exercisable for, or convertible
into, Common Stock of such Principal Party at less than such Fair Market Value, or (ii) providing
for any special payment, tax or similar provisions in connection with the issuance of the Common
Stock of such Principal Party pursuant to the provisions of this Section 13, then, in such event,
the Company shall not consummate any such transaction unless prior thereto the Company and such
Principal Party shall have executed and delivered to the Rights Agent a supplemental agreement
providing that the provision in question of such Principal Party shall have been canceled, waived
or amended, or that the authorized securities shall be redeemed, so that the applicable provision
will have no effect in connection with, or as a consequence of, the consummation of the proposed
transaction.



The provisions of this Section 13 shall similarly apply to successive mergers or
consolidations or sales or other transfers.




Section 14. Fractional Rights and Fractional Shares.



(a) The Company shall not be required to issue fractions of Rights, except prior to the
Distribution Date as provided in Section 11(o) hereof, or to distribute Right Certificates which
evidence fractional Rights. If the Company elects not to issue such fractional Rights, the Company
shall pay, in lieu of such fractional Rights, to the registered holders of the Right Certificates
with regard to which
such fractional Rights would otherwise be issuable, an amount in cash equal to the same
fraction of the Fair Market Value of a whole Right, as determined pursuant to Section 11(d) hereof.


 


25









 





(b) The Company shall not be required to issue fractions of shares of Preferred Stock (other
than fractions which are integral multiples of one one-thousandth of a share of Preferred Stock)
upon exercise of the Rights or to distribute certificates which evidence fractional shares of
Preferred Stock (other than fractions which are integral multiples of one one-thousandth of a share
of Preferred Stock). In lieu of fractional shares of Preferred Stock that are not integral
multiples of one one-thousandth of a share of Preferred Stock, the Company may pay to the
registered holders of Right Certificates at the time such Rights are exercised as herein provided
an amount in cash equal to the same fraction of the Fair Market Value of one one-thousandth of a
share of Preferred Stock. For purposes of this Section 14(b), the Fair Market Value of one
one-thousandth of a share of Preferred Stock shall be determined pursuant to Section 11(d) hereof
for the Trading Day immediately prior to the date of such exercise.



(c) The holder of a Right by the acceptance of the Rights expressly waives his right to
receive any fractional Rights or any fractional shares upon exercise of a Right, except as
permitted by this Section 14.



Section 15. Rights of Action. All rights of action in respect of this Agreement, other than
rights of action vested in the Rights Agent pursuant to Sections 18 and 20 hereof, are vested in
the respective registered holders of the Right Certificates (or, prior to the Distribution Date,
the registered holders of the Common Stock of the Company); and any registered holder of any Right
Certificate (or, prior to the Distribution Date, of the Common Stock of the Company), without the
consent of the Rights Agent or of the holder of any other Right Certificate (or, prior to the
Distribution Date, of the Common Stock of the Company), may, in such registered holder’s own behalf
and for such registered holder’s own benefit, enforce, and may institute and maintain any suit,
action or proceeding against the Company to enforce, or otherwise act in respect of, his right to
exercise the Right evidenced by such Right Certificate in the manner provided in such Right
Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the
holders of Rights, it is specifically acknowledged that the holders of Rights would not have an
adequate remedy at law for any breach of this Agreement and shall be entitled to specific
performance of the obligations hereunder and injunctive relief against actual or threatened
violations of the obligations hereunder of any Person subject to this Agreement. Holders of Rights
shall be entitled to recover the reasonable costs and expenses, including attorneys’ fees, incurred
by them in any action to enforce the provisions of this Agreement.



Section 16. Agreement of Right Holders. Every holder of a Right, by accepting the same,
consents and agrees with the Company and the Rights Agent and with every other holder of a Right
that:



(a) prior to the Distribution Date, each Right will be transferable only simultaneously and
together with the transfer of shares of Common Stock of the Company;



(b) after the Distribution Date, the Right Certificates are transferable only on the registry
books of the Rights Agent if surrendered at the office or offices of the Rights Agent designated
for such purpose, duly endorsed or accompanied by a proper instrument of transfer;


 


26









 





(c) subject to Sections 6(a) and 7(f), the Company and the Rights Agent may deem and treat the
person in whose name a Right Certificate (or, prior to the Distribution Date, the associated
certificate representing Common Stock of the Company) is registered as the absolute owner thereof
and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the
Right Certificates or the associated certificate representing Common Stock of the Company made by
anyone other than the Company or the Rights Agent) for all purposes whatsoever, and, subject to the
last sentence of Section 7(e), neither the Company nor the Rights Agent shall be affected by any
notice to the contrary; and



(d) notwithstanding anything in this Agreement to the contrary, neither the Company nor the
Rights Agent shall have any liability to any holder of a Right or other Person as the result of its
inability to perform any of its obligations under this Agreement by reason of any preliminary or
permanent injunction or other order, decree or ruling issued by a court of competent jurisdiction
or by a governmental, regulatory or administrative agency or commission, or any statute, rule,
regulation or executive order promulgated or enacted by any governmental authority prohibiting or
otherwise restraining performance of such obligations; provided, however, that the
Company must use commercially reasonable efforts to have any such order, decree or ruling lifted or
otherwise overturned as soon as possible.



Section 17. Right Certificate Holder Not Deemed a Stockholder. No holder, as such, of any
Right Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the
holder of the shares of Preferred Stock or any other securities of the Company which may at any
time be issuable on the exercise of the Rights represented thereby, nor shall anything contained
herein or in any Right Certificate be construed to confer upon the holder of any Right Certificate,
as such, any of the rights of a stockholder of the Company or any right to vote for the election of
directors or upon any matter submitted to stockholders at any meeting thereof, or to give or
withhold consent to any corporate action, or to receive notice of meetings or other actions
affecting stockholders (except as provided in Section 25 hereof), or to receive dividends or
subscription rights, or otherwise, until the Right or Rights evidenced by such Right Certificate
shall have been exercised in accordance with the provisions hereof.




Section 18. Concerning the Rights Agent.



(a) The Company agrees to pay to the Rights Agent such compensation as shall be agreed to in
writing between the Company and the Rights Agent for all services rendered by it hereunder and,
from time to time, on demand of the Rights Agent, its reasonable expenses and attorney fees and
disbursements and other disbursements incurred in the administration and execution of this
Agreement and the exercise and performance of its duties hereunder. The Company also agrees to
indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, or expense,
incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent,
for anything done or omitted by the Rights Agent in connection with the acceptance and
administration of this Agreement, including the costs and expenses of defending against any claim
of liability arising therefrom, directly or indirectly. The provisions of this Section 18(a) shall
survive the expiration of the Rights and the termination of this Agreement.



(b) The Rights Agent shall be protected and shall incur no liability for or in respect of any
action taken, suffered or omitted by it in connection with its administration of this Agreement in
reliance upon any Right Certificate or certificate representing Common Stock of the Company,
Preferred
Stock, or other securities of the Company, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or
other paper or document believed by it in good faith and without gross negligence to be genuine and
to be signed and executed by the proper Person or Persons.


 


27









 





(c) The Rights Agent shall not be liable for consequential damages under any provision of this
Agreement or for any consequential damages arising out of any act or failure to act hereunder. Any
liability of the Rights Agent under this Agreement will be limited to the amount of fees paid by
the Company to the Rights Agent.




Section 19. Merger or Consolidation or Change of Name of Rights Agent.



(a) Any corporation into which the Rights Agent or any successor Rights Agent may be merged or
with which it may be consolidated, or any corporation resulting from any merger or consolidation to
which the Rights Agent or any successor Rights Agent shall be a party, or any corporation
succeeding to the corporate trust or stockholder services business of the Rights Agent or any
successor Rights Agent, shall be the successor to the Rights Agent under this Agreement without the
execution or filing of any paper or any further act on the part of any of the parties hereto,
provided that such corporation would be eligible for appointment as a successor
Rights Agent under the provisions of Section 21 hereof. In case at the time such successor Rights
Agent shall succeed to the agency created by this Agreement, any of the Right Certificates shall
have been countersigned but not delivered, any such successor Rights Agent may adopt the
countersignature of the predecessor Rights Agent and deliver such Right Certificates so
countersigned; and in case at that time any of the Right Certificates shall not have been
countersigned, any successor Rights Agent may countersign such Right Certificates either in the
name of the predecessor or in the name of the successor Rights Agent; and in all such cases such
Right Certificates shall have the full force provided in the Right Certificates and in this
Agreement.



(b) In case at any time the name of the Rights Agent shall be changed and at such time any of
the Right Certificates shall have been countersigned but not delivered, the Rights Agent may adopt
the countersignature under its prior name and deliver Right Certificates so countersigned; and in
case at that time any of the Right Certificates shall not have been countersigned, the Rights Agent
may countersign such Right Certificates either in its prior name or in its changed name; and in all
such cases such Right Certificates shall have the full force provided in the Right Certificates and
in this Agreement.



Section 20. Duties of Rights Agent. The Rights Agent undertakes the duties and obligations
expressly imposed by this Agreement upon the following terms and conditions, by all of which the
Company and the holders of Right Certificates, by their acceptance thereof, shall be bound:



(a) The Rights Agent may consult with legal counsel selected by it (who may be legal counsel
for the Company), and the opinion of such counsel shall be full and complete authorization and
protection to the Rights Agent as to any action taken or omitted by it in good faith and in
accordance with such opinion.



(b) Whenever in the performance of its duties under this Agreement the Rights Agent shall deem
it necessary or desirable that any fact or matter (including, without limitation, the identity of
any Acquiring Person and the determination of “Fair Market Value”) be proved or established by the
Company prior to taking or suffering any action hereunder, such fact or matter (unless other
evidence in
respect thereof shall be herein specifically prescribed) may be deemed to be conclusively
proved and established by a certificate signed by a person believed by the Rights Agent to be the
Chairman of the Board of Directors, a Vice Chairman of the Board of Directors, the President, a
Vice President, the Treasurer, any Assistant Treasurer, the Secretary or an Assistant Secretary of
the Company and delivered to the Rights Agent. Any such certificate shall be full authorization to
the Rights Agent for any action taken or suffered in good faith by it under the provisions of this
Agreement in reliance upon such certificate.


 


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(c) The Rights Agent shall be liable hereunder only for its own gross negligence, bad faith or
willful misconduct.



(d) The Rights Agent shall not be liable for or by reason of any of the statements of fact or
recitals contained in this Agreement or in the Right Certificates (except its countersignature
thereof) or be required to verify the same, but all such statements and recitals are and shall be
deemed to have been made by the Company only.



(e) The Rights Agent shall not be under any responsibility in respect of the validity of this
Agreement or the execution and delivery hereof (except the due execution hereof by the Rights
Agent) or in respect of the validity or execution of any Right Certificate (except its
countersignature thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Right Certificate; nor shall it be
responsible for any change in the exercisability of the Rights (including the Rights becoming void
pursuant to Section 7(e) hereof) or any adjustment required under the provisions of Sections 11, 13
or 24(c) hereof or responsible for the manner, method or amount of any such adjustment or the
ascertaining of the existence of facts that would require any such adjustment (except with respect
to the exercise of Rights evidenced by Right Certificates after receipt of a certificate describing
any such adjustment furnished in accordance with Section 12 hereof), nor shall it be responsible
for any determination by the Board of Directors of the Fair Market Value of the Rights or Preferred
Stock pursuant to the provisions of Section 14 hereof; nor shall it by any act hereunder be deemed
to make any representation or warranty as to the authorization or reservation of any shares of
Common Stock of the Company or Preferred Stock to be issued pursuant to this Agreement or any Right
Certificate or as to whether or not any shares of Common Stock of the Company or Preferred Stock
will, when so issued, be validly authorized and issued, fully paid and nonassessable.



(f) The Company agrees that it will perform, execute, acknowledge and deliver or cause to be
performed, executed, acknowledged and delivered all such further and other acts, instruments and
assurances as may reasonably be required by the Rights Agent for the carrying out or performing by
the Rights Agent of the provisions of this Agreement.



(g) The Rights Agent is hereby authorized and directed to accept instructions with respect to
the performance of its duties hereunder and certificates delivered pursuant to any provision hereof
from any person believed by the Rights Agent to be the Chairman of the Board of Directors, any Vice
Chairman of the Board of Directors, the President, a Vice President, the Secretary, an Assistant
Secretary, the Treasurer or an Assistant Treasurer of the Company, and is authorized to apply to
such officers for advice or instructions in connection with its duties, and it shall not be liable
for any action taken or suffered to be taken by it in good faith in accordance with instructions of
any such officer. Any application by the Rights Agent for written instructions from the Company
may, at the option of the
Rights Agent, set forth in writing any action proposed to be taken or omitted by the Rights
Agent under this Agreement and the date on or after which such action shall be taken or such
omission shall be effective. The Rights Agent shall not be liable for any action taken by, or
omission of, the Rights Agent in accordance with a proposal included in such application on or
after the date specified in such application (which date shall not be less than five Business Days
after the date any officer of the Company actually receives such application, unless any such
officer shall have consented in writing to an earlier date) unless, prior to taking any such action
(or the effective date in the case of an omission), the Rights Agent shall have received written
instructions in response to such application specifying the action to be taken or omitted.


 


29









 





(h) The Rights Agent and any stockholder, director, officer or employee of the Rights Agent
may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily
interested in any transaction in which the Company may be interested, or contract with or lend
money to the Company or otherwise act as fully and freely as though it were not the Rights Agent
under this Agreement. Nothing herein shall preclude the Rights Agent from acting in any other
capacity for the Company or for any other legal entity.



(i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it
or perform any duty hereunder either itself or by or through its attorneys or agents.



(j) No provision of this Agreement shall require the Rights Agent to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties hereunder
or in the exercise of its rights if there shall be reasonable grounds for believing that repayment
of such funds or adequate indemnification against such risk or liability is not reasonably assured
to it.



(k) If, with respect to any Right Certificate surrendered to the Rights Agent for exercise or
transfer, the certificate attached to the form of assignment or form of election to purchase, as
the case may be, has either not been completed or indicates an affirmative response to clause (1)
or clause (2) thereof, the Rights Agent shall not take any further action with respect to such
requested exercise or transfer without first consulting with the Company.



Section 21. Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign
and be discharged from its duties under this Agreement upon thirty (30) days’ notice in writing
mailed to the Company by first class mail, provided, however, that in the event the
transfer agency relationship in effect between the Company and the Rights Agent with respect to the
Common Stock of the Company terminates, the Rights Agent will be deemed to have resigned
automatically on the effective date of such termination. The Company may remove the Rights Agent
or any successor Rights Agent (with or without cause), effective immediately or on a specified
date, by written notice given to the Rights Agent or successor Rights Agent, as the case may be,
and to each transfer agent of the Common Stock of the Company and Preferred Stock, and by giving
notice to the holders of the Right Certificates by any means reasonably determined by the Company
to inform such holders of such removal (including without limitation, by including such information
in one or more of the Company’s reports to stockholders or reports or filings with the Securities
and Exchange Commission). If the Rights Agent shall resign or be removed or shall otherwise become
incapable of acting, the Company shall appoint a successor to the Rights Agent. If the Company
shall fail to make such appointment within a period of thirty (30) days after giving notice of such
removal or after it has been notified in writing of such resignation or incapacity by the



 


30









 






resigning
or incapacitated Rights Agent or by the holder of a Right Certificate (who shall, with such notice, submit his Right Certificate for
inspection by the Company), then the incumbent Rights Agent or the registered holder of any Right
Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights
Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be
(a) a corporation organized and doing business under the laws of the United States, the State of
Maryland or the State of New York (or of any other state of the United States so long as such
corporation is authorized to do business as a banking institution in the State of Maryland or the
State of New York), in good standing, which is authorized under such laws to exercise stock
transfer or corporate trust powers and is subject to supervision or examination by federal or state
authority and which has at the time of its appointment as Rights Agent a combined capital and
surplus of at least $100,000,000 or (b) an Affiliate of a Person described in clause (a) of this
sentence. After appointment, the successor Rights Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally named as Rights Agent without
further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor
Rights Agent any property at the time held by it hereunder, and execute and deliver any further
assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of
any such appointment, the Company shall file notice thereof in writing with the predecessor Rights
Agent and each transfer agent of the Common Stock of the Company and the Preferred Stock, and give
notice to the holders of the Right Certificates by any means reasonably determined by the Company
to inform such holders of such appointment (including without limitation, by including such
information in one or more of the Company’s reports to stockholders or reports or filings with the
Securities and Exchange Commission). Failure to give any notice provided for in this Section 21,
however, or any defect therein, shall not affect the legality or validity of the resignation or
removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be.



Section 22. Issuance of New Right Certificates. Notwithstanding any of the provisions of this
Agreement or of the Rights to the contrary, the Company may, at its option, issue new Right
Certificates evidencing Rights in such form as may be approved by the Board of Directors to reflect
any adjustment or change in the Exercise Price per share and the number or kind or class of shares
of stock or other securities or property purchasable under the Right Certificates made in
accordance with the provisions of this Agreement. In addition, in connection with the issuance or
sale of shares of Common Stock of the Company following the Distribution Date and prior to the
redemption or expiration of the Rights, the Company (a) shall, with respect to shares of Common
Stock of the Company so issued or sold pursuant to the exercise of stock options or under any
employee plan or arrangement, or upon the exercise, conversion or exchange of securities hereafter
issued by the Company, and (b) may, in any other case, if deemed necessary or appropriate by the
Board of Directors, issue Right Certificates representing the appropriate number of Rights in
connection with such issuance or sale; provided, however, that (i) no such Right
Certificate shall be issued if, and to the extent that, the Company shall be advised by counsel
that such issuance would create a significant risk of material adverse tax consequences to the
Company or the Person to whom such Right Certificate would be issued, and (ii) no such Right
Certificate shall be issued if, and to the extent that, appropriate adjustments shall otherwise
have been made in lieu of the issuance thereof.




Section 23. Redemption.



(a) The Board of Directors may, at its option, redeem all but not less than all of the then
outstanding Rights at a redemption price of $0.001 per Right, appropriately adjusted to reflect any
stock dividend declared or paid, any subdivision or combination of the outstanding shares of Common
Stock of the Company or any similar event occurring after the date of this Agreement (such
redemption price, as adjusted from time to time, being hereinafter referred to as the
“Redemption Price”). The Rights may be redeemed at any time prior to the earlier to occur
of (i) a Distribution Date, or (ii) the Final Expiration Date.


 


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(b) Immediately upon the action of the Board of Directors ordering the redemption of the
Rights in accordance with Section 23 hereof, and without any further action and without any notice,
the right to exercise the Rights will terminate and the only right thereafter of the holders of
Rights shall be to receive the Redemption Price for each Right so held. Promptly after the action
of the Board of Directors ordering the redemption of the Rights in accordance with this Section 23,
the Company shall give notice of such redemption to the Rights Agent and the holders of the then
outstanding Rights by mailing such notice to the Rights Agent and to all such holders at their last
addresses as they appear upon the registry books of the Rights Agent or, prior to the Distribution
Date, on the registry books of the transfer agent for the Common Stock of the Company. Any notice
which is mailed in the manner herein provided shall be deemed given, whether or not the holder
receives the notice. The Company promptly shall mail a notice of any such exchange to all of the
holders of such Rights at their last addresses as they appear upon the registry books of the Rights
Agent. Any notice which is mailed in the manner herein provided shall be deemed given, whether or
not the holder receives the notice. Each such notice of redemption will state the method by which
the payment of the Redemption Price will be made. Neither the Company nor any of its Affiliates or
Associates may redeem, acquire or purchase for value any Rights at any time in any manner other
than that specifically set forth in this Section 23 or Section 24 hereof or in connection with the
purchase of shares of Common Stock of the Company prior to the Distribution Date.



(c) The Company may, at its option, pay the Redemption Price in cash, shares of Common Stock
of the Company (based on the Fair Market Value of the Common Stock of the Company as of the time of
redemption) or any other form of consideration deemed appropriate by the Board of Directors.




Section 24. Exchange.



(a) (i) The Board of Directors may, at its option, at any time on or after the occurrence of a
Section 11(a)(ii) Event, exchange all or part of the then outstanding Rights, whether or not
previously exercised (but which exchange shall not include Rights that have become void pursuant to
the provisions of Section 7(e) hereof) for shares of Common Stock of the Company at an exchange
ratio of one share of Common Stock of the Company per Right, appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date hereof (such exchange
ratio being hereinafter referred to as the “Section 24(a)(i) Exchange Ratio”).
Notwithstanding the foregoing, the Board of Directors shall not be empowered to effect such
exchange at any time after any Person (other than an Exempt Person), together with all Affiliates
and Associates of such Person, becomes the Beneficial Owner of 50% or more of the Common Stock of
the Company.


 


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(ii) Notwithstanding the foregoing, the Board of Directors may, at its option, at any time on
or after the occurrence of a Section 11(a)(ii) Event, exchange all or part of the then outstanding
and exercisable Rights (which shall not include Rights that have become null and void pursuant to
the provisions of Section 7(e) hereof) for shares of Common Stock of the Company at an exchange
ratio specified in the following sentence, as appropriately adjusted to reflect any stock split,
stock dividend or similar transaction occurring after the date of this Agreement. Subject to
the adjustment described in the foregoing sentence, each Right may be exchanged for that number of
shares of Common Stock of the Company obtained by dividing the Spread (as defined in Section
11(a)(iii)) by the then Fair Market Value of a share of Common Stock of the Company on the earlier
of (x) the date on which any Person becomes an Acquiring Person or (y) the date on which a tender
or exchange offer by any Person (other than an Exempt Person) is first published or sent or given
within the meaning of Rule 14d-4(a) of the Exchange Act or any successor rule, if upon consummation
thereof such Person could become an Acquiring Person (such exchange ratio being referred to herein
as the “Section 24(a)(ii) Exchange Ratio”). Notwithstanding the foregoing, the Board of
Directors shall not be empowered to effect such exchange at any time after any Person (other than
an Exempt Person), together with all Affiliates and Associates of such Person, becomes the
Beneficial Owner of 50% or more of the Common Stock of the Company.



(b) Immediately upon the action of the Board of Directors ordering the exchange of any Rights
pursuant to subsection (a) of this Section 24 and without any further action and without any
notice, the right to exercise such Rights pursuant to Section 11(a)(ii) shall terminate and the
only right thereafter of a holder of such Rights shall be to receive that number of shares of
Common Stock of the Company equal to the number of such Rights held by such holder multiplied by
the Section 24(a)(i) Exchange Ratio or the Section 24(a)(ii) Exchange Ratio, as applicable;
provided, however, that the holder of a Right exchanged pursuant to this Section 24
shall continue to have the right to purchase securities or other property of the Principal Party
following a Section 13 Event that has occurred or may thereafter occur. The Company shall promptly
give notice of any such exchange in accordance with Section 26 hereof and shall promptly mail a
notice of any such exchange to all of the holders of such Rights at their last addresses as they
appear upon the registry books of the Rights Agent; provided, however, that the
failure to give, or any defect in, such notice shall not affect the validity of such exchange. Any
notice which is mailed in the manner herein provided shall be deemed given, whether or not the
holder receives the notice. Each such notice of exchange will state the method by which the
exchange of the shares of Common Stock of the Company for Rights will be effected and, in the event
of any partial exchange, the number of Rights which will be exchanged. Any partial exchange shall
be effected pro rata based on the number of Rights (other than Rights which have become null and
void pursuant to the provisions of Section 7(e) hereof) held by each holder of Rights.



(c) In any exchange pursuant to this Section 24, the Company, at its option, may substitute
Preferred Stock (or Preferred Stock Equivalent, as such term is defined in Section 11(b) hereof)
for Common Stock of the Company exchangeable for Rights, at the initial rate of one one-thousandth
of a share of Preferred Stock (or Preferred Stock Equivalent) for each share of Common Stock of the
Company, as appropriately adjusted to reflect adjustments in the voting rights of the Preferred
Stock pursuant to the terms thereof, so that the fraction of a share of Preferred Stock delivered
in lieu of each share of Common Stock of the Company shall have the same voting rights as one share
of Common Stock of the Company.



(d) In the event that there shall not be sufficient shares of Common Stock of the Company or
Preferred Stock (or Preferred Stock Equivalents) authorized but unissued to permit any exchange of
Rights as contemplated in accordance with this Section 24, the Company shall take all such action
as may be necessary to authorize additional shares of Common Stock of the Company or Preferred
Stock (or Preferred Stock Equivalent) for issuance upon exchange of the Rights.


 


33









 





(e) The Company shall not be required to issue fractions of Common Stock of the Company or to
distribute certificates which evidence fractional shares of Common Stock of the Company. If the
Company elects not to issue such fractional shares of Common Stock of the Company, the Company
shall pay, in lieu of such fractional shares of Common Stock of the Company, to the registered
holders of the Right Certificates with regard to which such fractional shares of Common Stock of
the Company would otherwise be issuable, an amount in cash equal to the same fraction of the Fair
Market Value of a whole share of Common Stock of the Company. For the purposes of this paragraph
(e), the Fair Market Value of a whole share of Common Stock of the Company shall be the closing
price of a share of Common Stock of the Company (as determined pursuant to the second sentence of
Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of exchange pursuant to
this Section 24.




Section 25. Notice of Certain Events.



(a) In case the Company shall propose, at any time after the Distribution Date, (i) to pay any
dividend payable in stock of any class to the holders of Preferred Stock or to make any other
distribution to the holders of Preferred Stock (other than a regular periodic cash dividend out of
earnings or retained earnings of the Company), or (ii) to offer to the holders of Preferred Stock
rights or warrants to subscribe for or to purchase any additional shares of Preferred Stock or
shares of stock of any class or any other securities, rights or options, or (iii) to effect any
reclassification of Preferred Stock (other than a reclassification involving only the subdivision
of outstanding shares of Preferred Stock), or (iv) to effect any consolidation or merger into or
with, or to effect any sale, mortgage or other transfer (or to permit one or more of its
Subsidiaries to effect any sale, mortgage or other transfer), in one transaction or a series of
related transactions, of 50% or more of the assets or earning power of the Company and its
Subsidiaries (taken as a whole) to, any other Person (other than a Subsidiary of the Company in one
or more transactions each of which is not prohibited by the proviso at the end of the first
sentence of Section 11(n) hereof), or (v) to effect the liquidation, dissolution or winding up of
the Company, or (vi) to declare or pay any dividend on the Common Stock of the Company payable in
Common Stock of the Company or to effect a subdivision, combination or consolidation of the Common
Stock of the Company (by reclassification or otherwise than by payment of dividends in Common Stock
of the Company) then in each such case, the Company shall give to each holder of a Right
Certificate and to the Rights Agent, in accordance with Section 26 hereof, a notice of such
proposed action, which shall specify the record date for the purposes of such stock dividend,
distribution of rights or warrants, or the date on which such reclassification, consolidation,
merger, sale, transfer, liquidation, dissolution, or winding up is to take place and the date of
participation therein by the holders of the shares of Common Stock of the Company and/or Preferred
Stock, if any such date is to be fixed, and such notice shall be so given in the case of any action
covered by clause (i) or (ii) above at least twenty (20) days prior to the record date for
determining holders of the shares of Preferred Stock for purposes of such action, and in the case
of any such other action, at least twenty (20) days prior to the date of the taking of such
proposed action or the date of participation therein by the holders of the shares of Common Stock
of the Company and/or Preferred Stock, whichever shall be the earlier; provided,
however, no such notice shall be required pursuant to this Section 25 as a result of any
Subsidiary of the Company effecting a consolidation or merger with or into, or effecting a sale or
other transfer of assets or earnings power to, any other Subsidiary of the Company in a manner not
inconsistent with the provisions of this Agreement.


 


34









 





(b) In case any Section 11(a)(ii) Event shall occur, then, in any such case, the Company shall
as soon as practicable thereafter give to each registered holder of a Right Certificate and to the
Rights Agent, in accordance with Section 26 hereof, a notice of the occurrence of such event, which
shall specify the event and the consequences of the event to holders of Rights under Section
11(a)(ii) hereof.



Section 26. Notices. Notices or demands authorized by this Agreement to be given or made by
the Rights Agent or by the holder of any Right Certificate to or on the Company shall be
sufficiently given or made if sent by first-class mail, postage prepaid, by facsimile transmission
or by nationally-recognized overnight courier addressed (until another address is filed in writing
with the Rights Agent) as follows:




Capital Trust, Inc.

410 Park Avenue, 14th Floor

New York, NY 10022

Facsimile: 212-655-0244

Attention: Chief Financial Officer



Subject to the provisions of Section 21, any notice or demand authorized by this Agreement to
be given or made by the Company or by the holder of any Right Certificate to or on the Rights Agent
shall be sufficiently given or made if sent by first-class mail, postage prepaid, by facsimile
transmission or by nationally-recognized overnight courier addressed (until another address is
filed in writing with the Company) as follows:




American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, NY 11219

Facsimile: 718-921-8200

Attention: General Counsel



Notices or demands authorized by this Agreement to be given or made by the Company or the
Rights Agent to the holder of any Right Certificate (or, prior to the Distribution Date, to the
holder of any certificate representing shares of Common Stock of the Company) shall be sufficiently
given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address
of such holder as shown on the registry books of the Company.



Section 27. Supplements and Amendments. Prior to the occurrence of a Section 11(a)(ii) Event,
the Company and the Rights Agent shall, if the Board of Directors so directs, supplement or amend
any provision of this Agreement as the Board of Directors may deem necessary or desirable without
the approval of any holders of certificates representing shares of Common Stock of the Company.
From and after the occurrence of a Section 11(a)(ii) Event, the Company and the Rights Agent shall,
if the Board of Directors so directs, supplement or amend this Agreement without the approval of
any holder of Right Certificates in order (i) to cure any ambiguity, (ii) to correct or supplement
any provision contained herein which may be defective or inconsistent with any other provisions
herein, (iii) to shorten or lengthen any time period hereunder, or (iv) to change or supplement the
provisions hereof in any manner which the Board of Directors may deem necessary or desirable and
which shall not adversely affect the interests of the holders



 


35









 






of Right
Certificates (other than an Acquiring Person or any Affiliate or Associate of an Acquiring Person); provided,
however, that from and after the occurrence of a Section 11(a)(ii) Event this Agreement may
not be supplemented or amended to lengthen, pursuant to clause (iii) of this sentence, (A) a time
period relating to when the Rights may be redeemed at such time as the Rights are not then
redeemable or (B) any other time period unless such lengthening is for the purpose of protecting,
enhancing or clarifying the rights of, and the benefits to, the holders of Rights (other than an
Acquiring Person or any Affiliate or Associate of an Acquiring Person). Upon the delivery of such
certificate from an appropriate officer of the Company which states that the proposed supplement or
amendment is in compliance with the terms of this Section 27, the Rights Agent shall execute such
supplement or amendment, and any failure of the Rights Agent to so execute such supplement or
amendment shall not affect the validity of the actions taken by the Board of Directors pursuant to
this Section 27. Prior to the occurrence of a Section 11(a)(ii) Event, the interests of the
holders of Rights shall be deemed coincident with the interests of the holders of Common Stock of
the Company. Notwithstanding any other provision hereof, the Rights Agent’s consent must be
obtained regarding any amendment or supplement pursuant to this Section 27 which alters the Rights
Agent’s rights or duties.



Section 28. Successors. All the covenants and provisions of this Agreement by or for the
benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective
successors and assigns hereunder.



Section 29. Determinations and Actions by the Board of Directors. The Board of Directors
shall have the exclusive power and authority to administer this Agreement and to exercise all
rights and powers specifically granted to the Board of Directors or to the Company, or as may be
necessary or advisable in the administration of this Agreement, including without limitation, the
right and power to (i) interpret the provisions of this Agreement and (ii) make all determinations
and computations deemed necessary or advisable for the administration of this Agreement (including
a determination to redeem or not redeem the Rights or to amend the Agreement). All such actions,
calculations, interpretations and determinations (including, for purposes of clause (y) below, all
omissions with respect to the foregoing) which are done or made by the Board of Directors in good
faith shall (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of
the Rights and all other parties, and (y) not subject any member of the Board of Directors to any
liability to the holders of the Rights or to any other person.



Section 30. Benefits of this Agreement. Nothing in this Agreement shall be construed to give
to any Person other than the Company, the Rights Agent and the registered holders of the Right
Certificates (and, prior to the Distribution Date, the Common Stock of the Company) any legal or
equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and
exclusive benefit of the Company, the Rights Agent and the registered holders of the Right
Certificates (and, prior to the Distribution Date, registered holders of the Common Stock of the
Company).



Section 31. Severability. If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired or invalidated;
provided, however, that notwithstanding anything in this Agreement to the contrary,
if any such term, provision, covenant or restriction is held by such court or authority to be
invalid, void or unenforceable and the Board of Directors determines in good faith that severing
the invalid language from the Agreement would
adversely affect the purpose or effect of the Agreement, the right of redemption set forth in
Section 23 hereof shall be reinstated and shall not expire until the Close of Business on the tenth
day following the date of such determination by the Board of Directors.


 


36









 





Section 32. Governing Law. This Agreement and the Rights issued hereunder shall be governed
by and construed in accordance with the internal laws of Maryland without regard to the principles
of conflicts of laws; provided, however, that all provisions regarding the rights,
obligations, duties and immunities of the Rights Agent shall be governed by and construed in
accordance with, the laws of the State of New York. The courts of the State of Maryland and of the
United States of America located in the State of Maryland (the “Maryland Courts”) shall
have exclusive jurisdiction over any litigation arising out of or relating to this Agreement and
the transactions contemplated hereby, and any Person commencing or otherwise involved in any such
litigation shall waive any objection to the laying of venue of such litigation in the Maryland
Courts and shall not plead or claim in any Maryland Court that such litigation brought therein has
been brought in an inconvenient forum. Notwithstanding the foregoing, the Company and the Rights
Agent may mutually agree to a jurisdiction other than Maryland for any litigation directly between
the Company and the Rights Agent arising out of or relating to this Agreement.



Section 33. Counterparts. This Agreement may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument.



Section 34. Descriptive Headings. Descriptive headings of the several Sections of this
Agreement are inserted for convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.



Section 35. Force Majeure. Notwithstanding anything to the contrary contained herein, neither
the Company nor the Rights Agent shall be liable for any delay or failure in performance resulting
directly from any act or event beyond its reasonable control and without the fault or gross
negligence of the delayed or non-performing party that causes a sudden, substantial or widespread
disruption in business activities, including, without limitation, fire, flood, natural disaster or
act of God, strike or other industrial disturbance, war (declared or undeclared), embargo,
blockade, legal restriction, riot, insurrection, act of terrorism, disruption in transportation,
communications, electric power or other utilities, or other vital infrastructure or any means of
disrupting or damaging internet or other computer networks or facilities (each, a “Force
Majeure Condition”); provided, that such delayed or non-performing party shall use
reasonable commercial efforts to resume performance as soon as practicable. If any Force Majeure
Condition occurs, the party delayed or unable to perform shall give prompt written notice to the
other party, stating the nature of the Force Majeure Condition and any action being taken to avoid
or minimize its effect.



[Remainder of page intentionally left blank]




 


37









 







IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as an
instrument under seal and attested, all as of the day and year first above written.



	 	 	 	 	 	 	 	 	 
	ATTEST:	 	CAPITAL TRUST, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Geoffrey G. Jervis
 

Name: Geoffrey G. Jervis
	 	By:
	 	/s/ Stephen D. Plavin
 

Name: Stephen D. Plavin
	 	 
	 

	 	Title: Secretary
	 	 	 	Title: President	 	 






 


38









 





	 	 	 	 	 	 	 	 	 
	ATTEST:	 	AMERICAN STOCK TRANSFER
& TRUST COMPANY, LLC, as Rights Agent	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ David Brill
 

Name: David Brill
	 	By:
	 	/s/ Karishma Kadiani
 

Name: Karishma Kadiani
	 	 
	 

	 	Title: Authorized Officer
	 	 	 	Title: Counsel	 	 







 


39









 







Exhibit A




CAPITAL TRUST, INC.




ARTICLES SUPPLEMENTARY




SERIES A JUNIOR PARTICIPATING PREFERRED STOCK




Capital Trust, Inc., a Maryland corporation (the “Corporation”), hereby certifies to
the State Department of Assessments and Taxation of Maryland that:



FIRST: Under a power contained in Article VI of the charter of the Corporation (the
“Charter”), the Board of Directors of the Corporation (the “Board”), by duly adopted resolutions,
reclassified and designated 50,000 shares of the authorized but unissued shares of preferred stock
of the Corporation, $0.01 par value per share (the “Preferred Stock”), as shares of Series
A Junior Participating Preferred Stock, $0.01 par value per share, with the following preferences,
conversion and other rights, voting powers, restrictions, limitations as to dividends and other
distributions, qualifications and terms and conditions of redemption, which, upon any restatement
of the Charter, shall become part of Article VI of the Charter, with any necessary or appropriate
renumbering or relettering of the sections or subsections hereof:



Section 1. Designation and Amount. The shares of such series shall be designated as
“Series A Junior Participating Preferred Stock” (the “Series A Preferred Stock”) and the
number of shares constituting such series shall be 50,000. Such number of shares may be increased
or decreased by resolution of the Board in accordance with the Charter; provided, that no decrease
shall reduce the number of shares of Series A Preferred Stock to a number less than the number of
shares then outstanding plus the number of shares reserved for issuance upon the exercise of
outstanding options, rights or warrants or upon the conversion of any outstanding securities issued
by the Corporation convertible into Series A Preferred Stock.




Section 2. Dividends and Distributions.



(A) (i) Subject to the rights of the holders of any shares of any class or series of preferred
stock (or any similar stock) ranking prior and superior to the Series A Preferred Stock with
respect to dividends, the holders of shares of Series A Preferred Stock, in preference to the
holders of shares of Class A Common Stock of the Corporation, par value $.01 per share (“Common
Stock”) and of any other class or series of stock ranking junior to the Series A Preferred
Stock, shall be entitled to receive, when, as and if authorized by the Board and declared by the
Corporation out of funds legally available for the purpose, quarterly dividends payable in cash on
the first day of March, June, September and December in each year (each such date being referred to
herein as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend
Payment Date after the first issuance of a share or fraction of a share of Series A Preferred
Stock, in an amount per share (rounded to the nearest cent) equal to the greater of (a) $0.01 or
(b) subject to the provisions for adjustment hereinafter set forth, 1,000 times the aggregate per
share amount of all cash dividends, and 1,000 times the aggregate per share amount (payable in
kind) of all non-cash dividends or other distributions other than a
dividend payable in shares



 


 









 






 of Common Stock or a subdivision of the outstanding shares of Common Stock
(by reclassification or otherwise), declared on the Common Stock since the immediately preceding
Quarterly Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment Date,
since the first issuance of any share or fraction of a share of Series A Preferred Stock. The
multiple of cash and non-cash dividends declared on the Common Stock to which holders of the Series
A Preferred Stock are entitled, which shall be 1,000 initially but which shall be adjusted from
time to time as hereinafter provided, is hereinafter referred to as the “Dividend
Multiple.” In the event the Corporation shall at any time after March 3, 2011 (the “Rights
Declaration Date”) (i) declare or pay any dividend on Common Stock payable in shares of Common
Stock, or (ii) effect a subdivision or combination or consolidation of the outstanding shares of
Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then in each such case the
Dividend Multiple thereafter applicable to the determination of the amount of dividends which
holders of shares of Series A Preferred Stock shall be entitled to receive shall be the Dividend
Multiple applicable immediately prior to such event multiplied by a fraction, the numerator of
which is the number of shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were outstanding immediately
prior to such event.



(ii) Notwithstanding anything else contained in this paragraph (A), the Corporation shall, out
of funds legally available for that purpose, declare a dividend or distribution on the Series A
Preferred Stock as provided in this paragraph (A) immediately after it declares a dividend or
distribution on the Common Stock (other than a dividend payable in shares of Common Stock);
provided that, in the event no dividend or distribution shall have been declared on the Common
Stock during the period between any Quarterly Dividend Payment Date and the next subsequent
Quarterly Dividend Payment Date, a dividend of $0.01 per share on the Series A Preferred Stock
shall nevertheless be payable on such subsequent Quarterly Dividend Payment Date.



(B) Dividends shall begin to accrue and be cumulative on outstanding shares of Series A
Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issue of such
shares of Series A Preferred Stock, unless the date of issue of such shares is prior to the record
date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall
begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly
Dividend Payment Date or is a date after the record date for the determination of holders of shares
of Series A Preferred Stock entitled to receive a quarterly dividend and before such Quarterly
Dividend Payment Date, in either of which events such dividends shall begin to accrue and be
cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear
interest. Dividends paid on the shares of Series A Preferred Stock in an amount less than the
total amount of such dividends at the time accrued and payable on such shares shall be allocated
pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of
Directors may fix in accordance with applicable law a record date for the determination of holders
of shares of Series A Preferred Stock entitled to receive payment of a dividend or distribution
declared thereon, which record date shall be not more than such number of days prior to the date
fixed for the payment thereof as may be allowed by applicable law.


 


2









 





Section 3. Voting Rights. The holders of shares of Series A Preferred Stock shall
have the following voting rights:



(A) Subject to the provision for adjustment hereinafter set forth, each share of Series A
Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters submitted to a vote
of the stockholders of the Corporation. The number of votes which a holder of a share of Series A
Preferred Stock is entitled to cast, which shall initially be 1,000 but which may be adjusted from
time to time as hereinafter provided, is hereinafter referred to as the “Vote Multiple.”
In the event the Corporation shall at any time after the Rights Declaration Date (i) declare or pay
any dividend on Common Stock payable in shares of Common Stock, or (ii) effect a subdivision or
combination or consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number
of shares of Common Stock, then in each such case the Vote Multiple thereafter applicable to the
determination of the number of votes per share to which holders of shares of Series A Preferred
Stock shall be entitled shall be the Vote Multiple immediately prior to such event multiplied by a
fraction, the numerator of which is the number of shares of Common Stock outstanding immediately
after such event and the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.



(B) Except as otherwise provided in the Charter or by law, the holders of shares of Series A
Preferred Stock and the holders of shares of Common Stock and the holders of shares of any other
stock of this Corporation having general voting rights, shall vote together as one class on all
matters submitted to a vote of stockholders of the Corporation.



(C) (i) Whenever, at any time or times, dividends payable on any shares of Series A Preferred
Stock shall be in arrears in an amount equal to at least six full quarter dividends (whether or not
declared and whether or not consecutive), the holders of record of the outstanding shares of Series
A Preferred Stock shall have the exclusive right, voting separately as a single class, to elect two
directors of the Corporation at a special meeting of stockholders of the Corporation or at the
Corporation’s next annual meeting of stockholders, and at each subsequent annual meeting of
stockholders, as provided below.



(ii) Upon the vesting of such right of the holders of shares of Series A Preferred Stock, the
maximum authorized number of members of the Board of Directors shall automatically be increased by
two and the two vacancies so created shall be filled by vote of the holders of the outstanding
shares of Series A Preferred Stock as hereinafter set forth. A special meeting of the stockholders
of the Corporation then entitled to vote shall be called by the Chairman of the Board, Chief
Executive Officer or President of the Corporation or the Secretary of the Corporation, if requested
in writing by the holders of record of not less than 5% of the shares of Series A Preferred Stock
then outstanding. At such special meeting, or, if no such special meeting shall have been called,
then at the next annual meeting of stockholders of the Corporation, the holders of the shares of
Series A Preferred Stock shall elect, voting as above provided, two directors of the Corporation to
fill the aforesaid vacancies created by the automatic increase in the number of members of the
Board of Directors. At any and all such meetings for such election, the holders of a majority of
the outstanding shares of Series A Preferred Stock shall be necessary to constitute a quorum for
such election, whether present in person or proxy, and such two directors shall be elected by a
plurality of the votes cast by the holders of Series A Preferred Stock. Each such additional
director shall serve until the next annual meeting of stockholders for the election of directors,
or until his successor shall be elected and shall qualify, or until his right to hold such office
terminates pursuant to the provisions of this Section 3(C). Any director elected by holders of
shares of Series A Preferred Stock pursuant to this Section 3(C) may be removed at
any annual or special meeting, by vote of a majority of the stockholders voting as a class who
elected such director, with or without cause. In case any vacancy shall occur among the directors
elected by the holders of shares of Series A Preferred Stock pursuant to this Section 3(C), such
vacancy may be filled by the remaining director so elected, or his successor then in office, and
the director so elected to fill such vacancy shall serve until the next meeting of stockholders for
the election of directors.


 


3









 





(iii) The right of the holders of shares of Series A Preferred Stock, voting
separately as a class, to elect two members of the Board as aforesaid shall continue until, and
only until, such time as all arrears in dividends (whether or not declared) on the Series A
Preferred Stock shall have been paid or declared and set apart for payment, at which time such
right shall terminate, subject to revesting in the event of each and every subsequent default of
the character above-mentioned. Upon any termination of the right of the holders of the Series A
Preferred Stock as a class to vote for directors as herein provided, the term of office of all
directors then in office elected by the holders of shares of Series A Preferred Stock pursuant to
this Section 3(C) shall terminate immediately and the number of directors shall be reduced
accordingly. The voting rights granted by this Section 3(C) shall be in addition to any other
voting rights granted to the holders of the Series A Preferred Stock in this Section 3.



(D) Except as set forth herein, holders of Series A Preferred Stock shall have no voting
rights and their consent shall not be required (except to the extent they are entitled to vote with
holders of Common Stock as set forth herein) for taking any corporate action.




Section 4. Certain Restrictions.



(A) Whenever dividends or distributions payable on the Series A Preferred Stock as provided in
Section 2 are in arrears, thereafter and until all accrued and unpaid dividends and distributions,
whether or not declared, on shares of Series A Preferred Stock outstanding shall have been paid in
full, the Corporation shall not:



(i) declare or pay dividends on, make any other distributions on, or redeem or purchase or
otherwise acquire for consideration any shares of stock ranking junior (either as to dividends or
upon liquidation, dissolution or winding up) to the Series A Preferred Stock;



(ii) declare or pay dividends on or make any other distributions on any shares of stock
ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with
the Series A Preferred Stock, except dividends paid ratably on the Series A Preferred Stock and all
such parity stock on which dividends are payable or in arrears in proportion to the total amounts
to which the holders of all such shares are then entitled;



(iii) except as permitted in subsection 4(A)(iv) below, redeem, purchase or otherwise acquire
for consideration shares of any stock ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding up) with the Series A Preferred Stock, provided that the
Corporation may at any time redeem, purchase or otherwise acquire shares of any such parity stock
in exchange for shares of any stock of the Corporation ranking junior (either as to dividends or
upon dissolution, liquidation or winding up) to the Series A Preferred Stock; or


 


4









 





(iv) redeem, purchase or otherwise acquire for consideration any shares of Series A Preferred
Stock, or any shares of any stock ranking on a parity (either as to dividends or upon liquidation,
dissolution or winding up) with the Series A Preferred Stock, except in accordance with a purchase
offer made in writing or by publication (as determined by the Board) to all holders of such shares
upon such terms as the Board, after consideration of the respective annual dividend rates and other
relative rights and preferences of the respective series and classes, shall determine in good faith
will result in fair and equitable treatment among the respective series or classes.



(B) The Corporation shall not permit any subsidiary of the Corporation to purchase or
otherwise acquire for consideration any shares of stock of the Corporation unless the Corporation
could, under subsection (A) of this Section 4, purchase or otherwise acquire such shares at such
time and in such manner.



Section 5. Reacquired Shares. Any shares of Series A Preferred Stock purchased or
otherwise acquired by the Corporation in any manner whatsoever shall become authorized but unissued
shares of preferred stock without designation as to series and may be reissued as part of a new
series of preferred stock to be created by resolution or resolutions of the Board, subject to the
conditions and restrictions on issuance set forth in the Charter or otherwise required by law.



Section 6. Liquidation, Dissolution or Winding Up. Upon any liquidation, dissolution
or winding up of the Corporation (voluntary or otherwise), no distribution shall be made (x) to the
holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution
or winding up) to the Series A Preferred Stock unless, prior thereto, the holders of shares of
Series A Preferred Stock shall have received an amount (the “Series A Liquidation
Preference”) equal to accrued and unpaid dividends and distributions thereon, whether or not
declared, to the date of such payment, plus an amount equal to the greater of (1) $1,000.00 per
share or (2) an aggregate amount per share, subject to the provision for adjustment hereinafter set
forth, equal to 1,000 times the aggregate amount of all cash or other property to be distributed
per share to holders of Common Stock upon such liquidation, dissolution or winding up of the
Corporation, or (y) to the holders of stock ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding up) with the Series A Preferred Stock, except distributions
made ratably on the Series A Preferred Stock and all other such parity stock in proportion to the
total amounts to which the holders of all such shares are entitled upon such liquidation,
dissolution or winding up. In the event the Corporation shall at any time after the Rights
Declaration Date (i) declare or pay any dividend on Common Stock payable in shares of Common Stock,
or (ii) effect a subdivision or combination or consolidation of the outstanding shares of Common
Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock)
into a greater or lesser number of shares of Common Stock, then in each such case the aggregate
amount per share to which holders of shares of Series A Preferred Stock were entitled immediately
prior to such event under clause (x) of the preceding sentence shall be adjusted by multiplying
such amount by a fraction, the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the number of shares of
Common Stock that were outstanding immediately prior to such event.



In the event, however, that there are not sufficient assets available to permit payment in
full of the Series A Liquidation Preference and the liquidation preferences of all other classes
and series of stock of the Corporation, if any, that rank on a parity with the Series A Preferred
Stock in respect
thereof, then the assets available for such distribution shall be distributed ratably to the
holders of the Series A Preferred Stock and the holders of such parity shares in proportion to
their respective liquidation preferences.


 


5









 





Neither the consolidation of nor merging of the Corporation with or into any other corporation
or corporations, nor the sale or other transfer of all or substantially all of the assets of the
Corporation, shall be deemed to be a liquidation, dissolution or winding up of the Corporation
within the meaning of this Section 6.



Section 7. Consolidation, Merger, etc. In case the Corporation shall enter into any
consolidation, merger, combination or other transaction in which the outstanding shares of Common
Stock are exchanged for or changed into other stock or securities, cash and/or any other property,
then in any such case each share of Series A Preferred Stock shall at the same time be similarly
exchanged or changed in an amount per share (subject to the provision for adjustment hereinafter
set forth) equal to 1,000 times the aggregate amount of stock, securities, cash and/or any other
property (payable in kind), as the case may be, into which or for which each share of Common Stock
is changed or exchanged, plus accrued and unpaid dividends, if any, payable with respect to the
Series A Preferred Stock. In the event the Corporation shall at any time after the Rights
Declaration Date (i) declare or pay any dividend on Common Stock payable in shares of Common Stock,
or (ii) effect a subdivision or combination or consolidation of the outstanding shares of Common
Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock)
into a greater or lesser number of shares of Common Stock, then in each such case the amount set
forth in the preceding sentence with respect to the exchange or change of shares of Series A
Preferred Stock shall be adjusted by multiplying such amount by a fraction, the numerator of which
is the number of shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were outstanding immediately
prior to such event.



Section 8. Redemption. The shares of Series A Preferred Stock shall not be
redeemable; provided, however, that the foregoing shall not limit the ability of
the Corporation to purchase or otherwise deal in such shares to the extent otherwise permitted, by
the Charter or by law.



Section 9. Ranking. Any class or series of shares of stock of the Corporation shall
be deemed to rank: (A) prior to the Series A Preferred Stock, as to the payment of dividends and as
to distribution of assets upon liquidation, dissolution or winding up, if the holders of such class
or series shall be entitled to the receipt of dividends or of amounts distributable upon
liquidation, dissolution or winding up, as the case may be, in preference or priority to the
holders of Series A Preferred Stock; (B) on a parity with the Series A Preferred Stock, as to the
payment of dividends and as to distribution of assets upon liquidation, dissolution or winding up,
whether or not the dividend rates, dividend payment dates or redemption or liquidation prices per
share thereof be different from those of the Junior Preferred Stock, if the holders of such class
or series and the Series A Preferred Stock shall be entitled to the receipt of dividends and of
amounts distributable upon liquidation, dissolution or winding up in proportion to their respective
amounts of accrued and unpaid dividends per share or liquidation preferences, without preference or
priority one over the other; or (C) junior to the Series A Preferred Stock, as to the payment of
dividends or as to the distribution of assets upon liquidation, dissolution or winding up.


 


6









 





Section 10. Fractional Shares. Series A Preferred Stock may be issued in whole
shares or in any fraction of a share that is one one-thousandth (1/1,000th) of a share or any
integral multiple of such fraction, which shall entitle the holder, in proportion to such holder’s
fractional shares, to exercise voting rights, receive dividends, participate in distributions and
to have the benefit of all other rights of holders of Series A Preferred Stock. In lieu of
fractional shares, the Corporation may elect to make a cash payment as provided in the Rights
Agreement for fractions of a share other than one one-thousandth (1/1,000th) of a share or any
integral multiple thereof.



Section 11. Amendment. At any time any shares of Series A Preferred Stock are
outstanding, the Charter and the foregoing Sections 1 through 10, inclusive, and this Section 11
shall not be amended in any manner, including by merger, consolidation or otherwise, which would
materially alter or change the powers, preferences or special rights of the Series A Preferred
Stock so as to affect them adversely without the affirmative vote of the holders of two-thirds or
more of the outstanding shares of Series A Preferred Stock, voting separately as a class.



SECOND: The Series A Preferred Stock has been classified and designated by the Board of
Directors under the authority contained in the Charter.



THIRD: These Articles Supplementary have been approved by the Board of Directors in the manner
and by the vote required by law.



FOURTH: The undersigned officer of the Corporation acknowledges these Articles Supplementary
to be the corporate act of the Corporation and, as to all matters or facts required to be verified
under oath, the undersigned officer acknowledges that, to the best of his knowledge, information
and belief, these matters and facts are true in all material respects and that this statement is
made under the penalties of perjury.




 


7









 







IN WITNESS WHEREOF, the Corporation has caused these Articles Supplementary to be signed in
its name and on its behalf by its President and attested to by its Secretary as of the 3rd

day of

 March 

2011.



	 	 	 	 	 	 	 	 	 
	Attested:	 	CAPITAL TRUST, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Geoffrey G. Jervis	 	By:	 	/s/ Stephen D. Plavin	 	 
	 

	 	 

Name: Geoffrey G. Jervis
	 	 	 	 

Name: Stephen D. Plavin
	 	 
	 

	 	Title: Secretary
	 	 	 	Title: President and Chief Executive Officer	 	 







 


 









 







Exhibit B




FORM OF RIGHT CERTIFICATE




Certificate No. R-                    Rights




NOT EXERCISABLE AFTER MARCH 14, 2014 OR EARLIER IF NOTICE OF REDEMPTION IS GIVEN OR THE RIGHTS
ARE TERMINATED IN ACCORDANCE WITH SECTION 7(a) OF THE RIGHTS AGREEMENT (DEFINED BELOW). THE RIGHTS
ARE SUBJECT TO REDEMPTION, AT THE OPTION OF CAPITAL TRUST, INC., AT $0.001 PER RIGHT, ON THE TERMS
SET FORTH IN THE TAX BENEFITS PRESERVATION RIGHTS AGREEMENT BETWEEN CAPITAL TRUST, INC. AND
AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC, AS RIGHTS AGENT, DATED AS OF MARCH 3, 2011 (THE
“RIGHTS AGREEMENT”). UNDER CERTAIN CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF THE RIGHTS
AGREEMENT, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN ASSOCIATE OR AFFILIATE OF AN
ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF
SUCH RIGHTS MAY BECOME NULL AND VOID.



Right Certificate




CAPITAL TRUST, INC.




This
certifies that
          , or registered assigns, is the registered
owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to
the terms, provisions and conditions of the Tax Benefits Preservation Rights Agreement dated as of
March 3, 2011 (the “Rights Agreement”) between Capital Trust, Inc., a Maryland corporation
(the “Company”), and American Stock Transfer & Trust Company, LLC, a New York limited
liability trust company, as Rights Agent (the “Rights Agent”), to purchase from the Company
at any time after the Distribution Date (as such term is defined in the Rights Agreement) and prior
to the close of business on March 14, 2014 at the office or offices of the Rights Agent designated
for such purpose, or its successors as Rights Agent, one one-thousandth of a fully paid,
non-assessable share of the Series A Junior Participating Preferred Stock (the “Preferred
Stock”) of the Company, at a purchase price of $6.00 per one one-thousandth of a share (the
“Exercise Price”), upon presentation and surrender of this Right Certificate with the Form
of Election to Purchase and the related Certificate duly executed. The number of Rights evidenced
by this Right Certificate (and the number of shares which may be purchased upon exercise thereof)
set forth above, and the Exercise Price per share set forth above, are the number and Exercise
Price as of
 _____, based on the Preferred Stock as constituted at such
date.



Upon the occurrence of a Section 11(a)(ii) Event (as such term is defined in the Rights
Agreement), if the Rights evidenced by this Right Certificate are beneficially owned by (i) an
Acquiring Person or an Affiliate or Associate of any such Person (as such terms are defined in the
Rights Agreement), (ii) a transferee of any such Acquiring Person or Associate or Affiliate
thereof, or (iii) under certain circumstances specified in the Rights Agreement, a transferee of a
Person who, after such transfer, became an Acquiring Person or an Affiliate or Associate of an
Acquiring Person, such Rights
shall become null and void and no holder hereof shall have any right with respect to such
Rights from and after the occurrence of such Section 11(a)(ii) Event.


 


 









 





As provided in the Rights Agreement, the Exercise Price and the number of shares of Preferred
Stock or other securities which may be purchased upon the exercise of the Rights evidenced by this
Right Certificate are subject to modification and adjustment upon the happening of certain events.



This Right Certificate is subject to all of the terms, provisions and conditions of the Rights
Agreement, which terms, provisions and conditions are hereby incorporated herein by reference and
made a part hereof and to which Rights Agreement reference is hereby made for a full description of
the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights
Agent, the Company and the holders of the Right Certificates, which limitations of rights include
the temporary suspension of the exercisability of such Rights under the specific circumstances set
forth in the Rights Agreement. Copies of the Rights Agreement are on file at the principal office
of the Company and the designated office of the Rights Agent and are also available upon written
request to the Company or the Rights Agent.



This Right Certificate, with or without other Right Certificates, upon surrender at the office
or offices of the Rights Agent designated for such purpose, may be exchanged for another Right
Certificate or Certificates of like tenor and date evidencing Rights entitling the holder to
purchase a like aggregate number of shares of Preferred Stock as the Rights evidenced by the Right
Certificate or Certificates surrendered shall have entitled such holder to purchase. If this Right
Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender
hereof another Right Certificate or Certificates for the number of whole Rights not exercised. If
this Right Certificate shall be exercised in whole or in part pursuant to Section 11(a)(ii) of the
Rights Agreement, the holder shall be entitled to receive this Right Certificate duly marked to
indicate that such exercise has occurred as set forth in the Rights Agreement.



Under certain circumstances, subject to the provisions of the Rights Agreement, the Board of
Directors at its option may cause the Company to exchange all or any part of the Rights evidenced
by this Certificate for shares of the Company’s Common Stock or Preferred Stock at an exchange
ratio (subject to adjustment) specified in the Rights Agreement.



Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate
may be redeemed by the Board of Directors at its option at a redemption price of $0.001 per Right
(payable in cash, Common Stock or other consideration deemed appropriate by the Board of
Directors).



The Company is not obligated to issue fractional shares of stock upon the exercise of any
Right or Rights evidenced hereby (other than fractions which are integral multiples of one
one-thousandth of a share of Preferred Stock, which may, at the election of the Company, be
evidenced by depositary receipts). If the Company elects not to issue such fractional shares, in
lieu thereof a cash payment will be made, as provided in the Rights Agreement.



No holder of this Right Certificate, as such, shall be entitled to vote or receive dividends
or be deemed for any purpose the holder of shares of Preferred Stock, Common Stock or any other
securities of the Company which may at any time be issuable on the exercise hereof, nor shall
anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof,
as such, any of the
rights of a stockholder of the Company or any right to vote for the election of directors or
upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to
any corporate action, or to receive notice of meetings or other actions affecting stockholders
(except as provided in the Rights Agreement), or to receive dividends or subscription rights, or
otherwise, until the Right or Rights evidenced by this Right Certificate shall have been exercised
as provided in the Rights Agreement.


 


2









 





This Right Certificate shall not be valid or obligatory for any purpose until it shall have
been countersigned by an authorized signatory of the Rights Agent.



WITNESS the facsimile signature of the proper officers of the Company as a document under
corporate seal.



	 	 	 	 	 	 	 	 	 
	Attested:	 	CAPITAL TRUST, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

Name: Geoffrey G. Jervis
	 	 	 	 

Name: Stephen D. Plavin
	 	 
	 

	 	Title: Secretary
	 	 	 	Title: President	 	 






	 	 	 	 	 
	Countersigned:	 	 
	 
	 	 	 	 
	AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 







 


3









 







[Form of Reverse Side of Right Certificate]




FORM OF ASSIGNMENT




(To be executed by the registered holder if such

holder desires to transfer the Right Certificate.)




FOR VALUE RECEIVED
                     hereby sells,
assigns and transfers unto
                                        
(Please print name and address of transferee)
                    

this Right Certificate, together with all right, title and interest therein,
and does hereby irrevocably constitute and appoint
           Attorney,
to transfer the within Right Certificate on the books of the within-named Company, with full power
of substitution.



	 	 	 	 	 
	Dated:                     ,
 _____ 



	 	 	 
	 
	 	 	 	 
	Signature
	 	 

	 	 
	 
	 	 	 	 
	Signature Guaranteed:
	 	 

	 	 
	 

	 	 	 






CERTIFICATE





The undersigned hereby certifies by checking the appropriate boxes that:



(1) the Rights evidenced by this Right Certificate o are o are
not being transferred by or on behalf of a Person who is or was an Acquiring Person or an Affiliate
or Associate of any such Person (as such terms are defined in the Rights Agreement); and



(2) after due inquiry and to the best knowledge of the undersigned, the undersigned
o did o did not directly or indirectly acquire the Rights evidenced by this Right
Certificate from any Person who is, was or became an Acquiring Person or an Affiliate or Associate
of any such Person.



	 	 	 	 	 
	Dated:                     ,
 _____ 



	 	 

Signature
	 	 






NOTICE




The signature to the foregoing Assignment and Certificate must correspond to the name as
written upon the face of this Right Certificate in every particular, without alteration or
enlargement or any change whatsoever.


 


 









 






FORM OF ELECTION TO PURCHASE




(To be executed if holder desires to

exercise the Right Certificate.)




To CAPITAL TRUST, INC.:



The undersigned hereby irrevocably elects to exercise
 _____ 

Rights represented by this Right
Certificate to purchase the shares of Preferred Stock issuable upon the exercise of the Rights (or
such other securities of the Company or of any other person which may be issuable upon the exercise
of the Rights) and requests that certificates for such shares be issued in the name of:







	 	 
	Please insert social security or other identifying taxpayer number: 
	 
	 
	 
	 
	 










(Please print name and address)



If such number of Rights shall not be all the Rights evidenced by this Right Certificate or if
the Rights are being exercised pursuant to Section 11(a)(ii) of the Rights Agreement, a new Right
Certificate for the balance of such Rights shall be registered in the name of and delivered to:






	 	 
	Please insert social security or other identifying taxpayer number: 
	 
	 
	 
	 
	 






(Please print name and address)



	 	 	 	 	 
	Dated:                     ,
 _____ 



	 	 

Signature
	 	 






	 	 	 	 	 
	Signature Guaranteed:
	 	 	 	 






 


 











 





CERTIFICATE





The undersigned hereby certifies by checking the appropriate boxes that:



(1) the Rights evidenced by this Right Certificate o are o are
not being exercised by or on behalf of a Person who is or was an Acquiring Person or an Affiliate
or Associate of any such Person (as such terms are defined in the Rights Agreement); and



(2) after due inquiry and to the best knowledge of the undersigned, the undersigned
o did o did not directly or indirectly acquire the Rights evidenced by this
Right Certificate from any Person who is, was or became an Acquiring Person or an Affiliate or
Associate of any such Person.



	 	 	 	 	 
	Dated:                     ,
 _____ 



	 	 

Signature
	 	 







 


 









 







NOTICE




The signature to the foregoing Election to Purchase and Certificate must correspond to the
name as written upon the face of this Right Certificate in every particular, without alteration or
enlargement or any change whatsoever.