Exhibit 4.1





Exhibit 4.1




GTSI Corp.




and




American Stock Transfer & Trust Company, LLC




Rights Agreement




Dated as of September 14, 2010



 


 









 





TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page	 
	 	 	Number	 
	 
	 	 	 	 
	Section 1. Definitions
	 	 	1	 
	Section 2. Appointment of Rights Agent
	 	 	6	 
	Section 3. Issue of Right Certificates
	 	 	6	 
	Section 4. Form of Right Certificates
	 	 	8	 
	Section 5. Execution, Countersignature and Registration
	 	 	8	 
	Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Lost,
Stolen, Destroyed or Mutilated Right Certificates
	 	 	9	 
	Section 7. Exercise of Rights; Purchase Price; Expiration Date of Rights
	 	 	10	 
	Section 8. Cancellation and Destruction of Right Certificates
	 	 	10	 
	Section 9. Availability of Preferred Shares
	 	 	11	 
	Section 10. Preferred Shares Record Date
	 	 	11	 
	Section 11. Adjustment of Purchase Price, Number of Shares or Number of Rights
	 	 	11	 
	Section 12. Certificate of Adjusted Purchase Price or Number of Shares
	 	 	18	 
	Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power
	 	 	19	 
	Section 14. Fractional Rights and Fractional Shares
	 	 	20	 
	Section 15. Rights of Action
	 	 	21	 
	Section 16. Agreement of Right Holders
	 	 	21	 
	Section 17. Right Certificate Holder Not Deemed a Stockholder
	 	 	22	 
	Section 18. Concerning the Rights Agent
	 	 	22	 
	Section 19. Merger or Consolidation or Change of Name of Rights Agent
	 	 	22	 
	Section 20. Duties of Rights Agent
	 	 	23	 
	Section 21. Change of Rights Agent
	 	 	24	 
	Section 22. Issuance of New Right Certificates
	 	 	25	 





 


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	 	 	Page	 
	 	 	Number	 
	 
	 	 	 	 
	Section 23. Redemption
	 	 	25	 
	Section 24. Exchange
	 	 	26	 
	Section 25. Securities Registration; Blue Sky Compliance
	 	 	27	 
	Section 26. Notice of Certain Events
	 	 	28	 
	Section 27. Notices
	 	 	28	 
	Section 28. Supplements and Amendments; Administration and Interpretation
	 	 	29	 
	Section 29. Successors
	 	 	30	 
	Section 30. Benefits of this Agreement
	 	 	30	 
	Section 31. Severability
	 	 	30	 
	Section 32. Governing Law
	 	 	30	 
	Section 33. Counterparts
	 	 	30	 
	Section 34. Descriptive Headings
	 	 	30	 






	 	 	 	 	 
	Exhibit A

	 	—
	 	Form of Certificate of Designations
	 
	 	 	 	 
	Exhibit B

	 	—
	 	Form of Right Certificate
	 
	 	 	 	 
	Exhibit C

	 	—
	 	Summary of Rights to Purchase Preferred Shares






 


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RIGHTS AGREEMENT




RIGHTS AGREEMENT (the “Agreement”), dated as of September 14, 2010, between GTSI
Corp., a Delaware corporation (the “Corporation”), and American Stock Transfer & Trust
Company, LLC, as rights agent (the “Rights Agent”).



The Board of Directors of the Corporation has authorized and declared a dividend of one (1)
preferred share purchase right (a “Right”) for each Common Share (as hereinafter defined)
of the Corporation outstanding at the Close of Business (as hereinafter defined) on September 24,
2010 (the “Record Date”), each Right representing the right to purchase one one-thousandth
(1/1,000th) of a Preferred Share (as hereinafter defined), upon the terms and subject to the
conditions herein set forth, and has further authorized and directed the issuance of one (1) Right
with respect to each Common Share of the Corporation that shall become outstanding between the
Record Date and the earliest of the Distribution Date, the Redemption Date, the Exchange Date and
the Final Expiration Date (as such terms are hereinafter defined).



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




Section 1. Definitions. »




For purposes of this Agreement, the following terms have the meanings indicated:



(a) “Acquiring Person” shall mean any Person who or which, together with all
Affiliates and Associates of such Person, shall be the Beneficial Owner of twenty percent (20%) or
more of the Common Shares of the Corporation then outstanding, but shall not include the
Corporation, any Subsidiary of the Corporation, any employee benefit plan of the Corporation or any
Subsidiary of the Corporation, or any entity (including any trustee) holding Common Shares for or
pursuant to the terms of any such plan. Notwithstanding the foregoing, no Person shall become an
“Acquiring Person”: (i) solely as the result of an acquisition of Common Shares by the Corporation
which, by reducing the number of Common Shares of the Corporation outstanding, increases the
proportionate number of Common Shares of the Corporation beneficially owned by such Person
(together with all Affiliates and Associates of such Person) to twenty percent (20%) or more of the
Common Shares of the Corporation then outstanding; provided, however, that, if a
Person (together with all Affiliates and Associates of such Person) shall become the Beneficial
Owner of twenty percent (20%) or more of the Common Shares of the Corporation then outstanding
solely by reason of share purchases by the Corporation and shall, after such share purchases by the
Corporation, become the Beneficial Owner of any additional Common Shares of the Corporation (other
than pursuant to a dividend or distribution paid or made by the Corporation on the Common Shares of
the Corporation then outstanding or pursuant to a split or subdivision of the then outstanding
Common Shares of the Corporation), then such Person shall be deemed to be an “Acquiring Person;”
(ii) if as of the date hereof such Person (together with all Affiliates and Associates of such
Person) is, or prior to the earlier of notice or the first public announcement of the adoption of
this Agreement such Person (together with all Affiliates and


 


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Associates of such Person) becomes,
the Beneficial Owner of twenty percent (20%) or more of the Common Shares of the Corporation then outstanding;
provided, however, that if such Person (together with all Affiliates and Associates
of such Person) shall become the Beneficial Owner of an additional one percent (1%) or more of the
Common Shares of the Corporation then outstanding after the earlier of notice or the first public
announcement of the adoption of this Agreement (other than pursuant to a dividend or distribution
paid or made by the Corporation on the Common Shares of the Corporation then outstanding or
pursuant to a split or subdivision of the then outstanding Common Shares of the Corporation), then
such Person shall be deemed to be an “Acquiring Person” unless, upon becoming the Beneficial Owner
of such additional Common Shares of the Corporation, such Person (together with all Affiliates and
Associates of such Person) is not then the Beneficial Owner of twenty percent (20%) or more of the
Common Shares of the Corporation then outstanding or (iii) if such Person becomes the Beneficial
Owner of twenty percent (20%) or more of the Common Shares of the Corporation then outstanding as a
result of an Exempt Acquisition (as such term is hereinafter defined), provided that such Person
(together with all Affiliates and Associates of such Person) does not subsequently, at any time
while the Beneficial Owner of twenty percent (20%) or more of the Common Shares of the Corporation
then outstanding, acquire Beneficial Ownership of additional Common Shares of the Corporation
(except pursuant to a subsequent Exempt Acquisition or other than pursuant to a dividend or
distribution paid or made by the Corporation on the Common Shares of the Corporation then
outstanding or pursuant to a split or subdivision of the then outstanding Common Shares of the
Corporation). Notwithstanding the foregoing, if the Board of Directors of the Corporation
determines in good faith that a Person who would otherwise be an “Acquiring Person,” as defined
pursuant to the foregoing provisions of this paragraph (a), has become such inadvertently, and such
Person divests as promptly as practicable a sufficient number of Common Shares so that such Person
would no longer be an “Acquiring Person,” as defined pursuant to the foregoing provisions of this
paragraph (a), then such Person shall not be deemed to be an “Acquiring Person” for any purposes of
this Agreement.




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



(c) “Affiliate” shall mean any Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, a specified Person.




(d) “Associate,” when used to indicate a relationship with any Person, shall mean:



(i) any corporation or organization of which such Person is an officer or partner or is,
directly or indirectly, the Beneficial Owner of ten percent (10%) or more of any class of equity
securities;



(ii) any trust or other estate in which such Person has a substantial beneficial interest or
as to which such Person serves as trustee or in a similar fiduciary capacity; and


 


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(iii) any relative or spouse of such Person, or any relative of such spouse, who has the same
home as such Person or who is a director or officer of the Corporation or any of its subsidiaries.



(e) A Person shall be deemed the “Beneficial Owner” of and shall be deemed to
“beneficially own” any securities:



(i) which such Person or any of such Person’s Affiliates or Associates beneficially owns,
directly or indirectly;



(ii) which such Person or any of such Person’s Affiliates or Associates has, directly or
indirectly: (A) the right to acquire (whether such right is exercisable immediately or only after
the passage of time, compliance with regulatory requirements, fulfillment of a condition or
otherwise) pursuant to any agreement, arrangement or understanding (other than customary agreements
with and between underwriters and the Corporation or other selling group members with respect to a
bona fide public offering of securities) (whether or not in writing), or upon the
exercise of conversion rights, exchange rights, rights (other than these Rights), warrants or
options, or otherwise; provided, however, 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 or on behalf of such Person or any of such Person’s Affiliates or Associates until
such tendered securities are accepted for purchase or exchange; or (B) the right to vote pursuant
to any agreement, arrangement or understanding (whether or not in writing); provided,
however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own,
any security if the agreement, arrangement or understanding to vote such security (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 under the
Exchange Act (or any comparable or successor report); or



(iii) without duplication of any securities that are deemed beneficially owned by a Person
pursuant to Section 1(e)(ii) hereof, which are beneficially owned, directly or indirectly, by any
other Person with which such Person or any of such Person’s Affiliates or Associates has any
agreement, arrangement or understanding (other than customary agreements with and between
underwriters and the Corporation or other selling group members with respect to a bona
fide public offering of securities) (whether or not in writing) for the purpose of
acquiring, holding, voting (except to the extent contemplated by the proviso to Section 1(e)(ii)(B)
hereof) or disposing of any securities of the Corporation.



A Person who or which, together with all of such Person’s Affiliates and Associates, shall be
the “Beneficial Owner” (within the meaning of Sections 1(e)(i) through 1(e)(iii) hereof) of five
percent (5%) or more of the Common Shares of the Corporation then outstanding, shall also be deemed
to be the “Beneficial Owner” of, to have “Beneficial Ownership” of or to “beneficially own,” the
full notional amount of any securities that, directly or indirectly, underlie any “derivative
security” (as such term is defined in Rule 16a-1(c) under the Exchange Act) that constitutes a
“call equivalent position” (as such term is defined in Rule 16a-1(b) under the Exchange Act)
(“Synthetic Equity Position”) and that is, directly or indirectly, held or maintained by such
Person, or any of such Person’s Affiliates a or Associates;
provided that, for the purposes of the definition of “Synthetic Equity Position,” the term
“derivative security” shall also include any security or instrument that would not otherwise
constitute a “derivative security” as a result of any feature that would make any conversion,
exercise or similar right or privilege


 


3









 






of
such security or instrument becoming determinable only  at some future date or upon the happening of a future occurrence, in which case the determination of
the amount of securities into which such security or instrument would be convertible or exercisable
shall be made assuming that such security or instrument is immediately convertible or exercisable
at the time of such determination; and, provided, further, that any Person satisfying the
requirements of Rule 13d-1(b)(1) (other than a Person that so satisfies Rule 13d-1(b)(1) solely by
reason of Rule 13d-1(b)(1)(ii)(E)) shall not be deemed to Beneficially Own the notional amount of
any securities that underlie a Synthetic Equity Position held by such Person as a hedge with
respect to a bona fide derivatives trade or position of such Person arising in the ordinary course
of such Person’s business as a derivatives dealer. For the avoidance of doubt, a Person shall be
deemed to have acquired Beneficial Ownership of additional Common Shares of the Corporation upon
settlement of a Synthetic Equity Position for Common Shares of the Corporation or upon entry into,
or acquisition of, any Synthetic Equity Position that was not held or maintained by such Person as
of immediately prior to the first public announcement of the adoption of this Agreement.



Notwithstanding anything in this definition of Beneficial Ownership to the contrary, the
phrase “then outstanding,” when used with reference to a Person’s Beneficial Ownership of
securities of the Corporation, shall mean the number of such securities then issued and outstanding
together with the number of such securities not then actually issued and outstanding, which such
Person would be deemed to own beneficially hereunder.




(f) “Business Combination” shall have the meaning set forth in Section 13 hereof.



(g) “Business Day” shall mean any day other than a Saturday, a 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.



(h) “Close of Business” on any given date shall mean 5:00 p.m., 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 time, on the next succeeding Business Day.



(i) “Common Shares” when used with reference to the Corporation (prior to a Business
Combination) shall mean the shares of common stock, par value $0.005 per share, of the Corporation.
“Common Shares” when used with reference to any Person (other than the Corporation prior to a
Business Combination) shall mean the class or series of capital stock (or other equity interest)
with the greatest voting power in respect to the election of directors (or other persons similarly
responsible for the direction of the business and affairs) of such other Person or, if such other
Person is a Subsidiary of another Person, the Person or Persons which ultimately control such first
mentioned Person.



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



(k) “Corporation” shall have the meaning set forth in the first introductory paragraph
of this Agreement.


 


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




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




(n) “Equivalent Preferred Shares” shall have the meaning set forth in Section 11(b).




(o) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.




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




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



(r) “Exempt Acquisition” shall mean an acquisition of Common Shares of the Corporation
in respect of which the Board of Directors of the Corporation has determined in advance of the
completion of the acquisition and the execution of any definitive agreement related thereto that
the Person acquiring Common Shares of the Corporation in the acquisition who would otherwise be an
“Acquiring Person” as defined above, should not be deemed an “Acquiring Person” because the
acquisition is in the best interests of the Corporation’s stockholders.




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




(t) “NASDAQ” shall mean the NASDAQ Global Market.



(u) “Person” shall mean any individual, firm, corporation or other entity, and shall
include any successor (by merger or otherwise) of such entity.



(v) “Preferred Shares” shall mean shares of Series A Junior Participating Preferred
Stock, par value $0.25 per share, of the Corporation having the rights and preferences set forth in
the Form of Certificate of Designations attached to this Agreement as Exhibit A.




(w) “Purchase Price” shall have the meaning set forth in Section 7(b) hereof.



(x) “Record Date” shall have the meaning set forth in the second introductory
paragraph of this Agreement.



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




(z) “Redemption Price” shall have the meaning set forth in Section 23(a) hereof.


 


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(aa) “Right” shall have the meaning set forth in the second introductory paragraph of
this Agreement.




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



(cc) “Rights Agent” shall have the meaning set forth in the first introductory
paragraph of this Agreement.



(dd) “Shares Acquisition Date” shall mean the first date of public announcement by the
Corporation or by or on behalf of an Acquiring Person that an Acquiring Person has become such.




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



(ff) “Subsidiary” of any Person shall mean any corporation or other entity of which a
majority of the voting power of the voting equity securities or equity interest is owned, directly
or indirectly, by such Person.



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




(hh) “Summary of Rights” shall have the meaning set forth in Section 3(b) hereof.




(ii) “Trading Day” shall have the meaning set forth in Section 11(d) hereof.



Section 2. Appointment of Rights Agent. The Corporation hereby appoints the Rights Agent to act as agent for the Corporation and the
holders of the Rights (who, in accordance with Section 3 hereof, shall, prior to the Distribution
Date, also be the holders of the Common Shares of the Corporation) in accordance with the terms and
conditions hereof, and the Rights Agent hereby accepts such appointment. The Corporation may from
time to time appoint such co-Rights Agents as it may deem necessary or desirable, the respective
duties of which shall be determined by the Corporation, upon ten (10) days’ prior written notice to
the Rights Agent. The Rights Agent shall have no duty to supervise, and in no event shall be
liable for, the acts or omissions of any such co-Rights Agent.




Section 3. Issue of Right Certificates.



(a) Until the earlier of (i) the tenth (10th) day after the Shares Acquisition Date or (ii)
the tenth (10th) Business Day (or such later date as may be determined by action of the Board of
Directors of the Corporation prior to such time as any Person becomes an Acquiring Person) after
the date of the commencement by any Person (other than the Corporation, any Subsidiary of the
Corporation, any employee benefit plan of the Corporation or of any Subsidiary of the Corporation
or any entity (including any trustee) holding Common Shares of
the Corporation for or pursuant to the terms of any such plan) of a tender or exchange offer
the consummation of which would result in any Person becoming the Beneficial Owner of Common Shares
of the Corporation aggregating twenty percent (20%) or more of the then outstanding Common Shares
of the Corporation (including


 


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any
such date that is after the date of this  Agreement and prior to
the issuance of the Rights; the earlier 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 Common Shares of the Corporation registered in the
names of the holders thereof (which certificates shall also be deemed to be Right Certificates) and
not by separate Right Certificates, and (y) the right to receive Right Certificates will be
transferable only in connection with the transfer of Common Shares of the Corporation. As soon as
practicable after the Distribution Date, the Corporation will prepare and execute, the Rights Agent
will countersign, and the Corporation will send or cause to be sent (and the Rights Agent will, if
requested, send) by first-class, insured, postage-prepaid mail, to each record holder of Common
Shares of the Corporation as of the Close of Business on the Distribution Date, at the address of
such holder shown on the records of the Corporation, a Right Certificate, in substantially the form
of Exhibit B hereto (a “Right Certificate”), evidencing one (1) Right for each Common Share
so held. As of the Distribution Date, the Rights will be evidenced solely by such Right
Certificates.



(b) On the Record Date, or as soon as practicable thereafter, the Corporation will send a copy
of a Summary of Rights to Purchase Preferred Shares, in substantially the form of Exhibit C hereto
(the “Summary of Rights”), by first-class, postage-prepaid mail, to each record holder of
Common Shares as of the Close of Business on the Record Date, at the address of such holder shown
on the records of the Corporation. With respect to certificates for Common Shares of the
Corporation outstanding as of the Record Date, until the Distribution Date, the Rights will be
evidenced by such certificates registered in the names of the holders thereof together with a copy
of the Summary of Rights attached thereto. Until the earliest of the Distribution Date, the
Redemption Date, the Exchange Date or the Final Expiration Date, the surrender for transfer of any
certificate for Common Shares of the Corporation outstanding on the Record Date, with or without a
copy of the Summary of Rights attached thereto, shall also constitute the transfer of the Rights
associated with the Common Shares of the Corporation represented thereby.



(c) Certificates for Common Shares that become outstanding (including, without limitation,
reacquired Common Shares referred to in the last sentence of this paragraph (c)) after the Record
Date but prior to the earliest of the Distribution Date, the Redemption Date, the Exchange Date or
the Final Expiration Date shall have impressed on, printed on, written on or otherwise affixed to
them the following legend:




This certificate also evidences and entitles the holder hereof to certain rights as
set forth in a Rights Agreement between GTSI Corp. and American Stock Transfer &
Trust Company, LLC, dated as of September 14, 2010, as it may be amended from time
to time (the “Agreement”), the terms of which are hereby incorporated herein
by reference and a copy of which is on file at the principal executive offices of
GTSI Corp. Under certain circumstances, as set forth in the Agreement, such Rights
(as defined in the Agreement) will be evidenced by separate certificates and will no
longer be evidenced by this certificate. GTSI Corp. will
mail to the holder of this certificate a copy of the Agreement without charge after
receipt of a written request therefor. As set forth in the Agreement, Rights
beneficially owned by any Person (as defined in the Agreement) who becomes an
Acquiring Person (as defined in the Agreement) become null and void and may not
thereafter be exercised or transferred.


 


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With respect to such certificates containing the foregoing legend, until the Distribution Date,
the Rights associated with the Common Shares of the Corporation represented by such certificates
shall be evidenced by such certificates alone, and the surrender for transfer of any such
certificate shall also constitute the transfer of the Rights associated with the Common Shares of
the Corporation represented thereby. In the event that the Corporation purchases or acquires any
Common Shares of the Corporation after the Record Date but prior to the Distribution Date, any
Rights associated with such Common Shares of the Corporation shall be deemed cancelled and retired
so that the Corporation shall not be entitled to exercise any Rights associated with the Common
Shares of the Corporation that are no longer outstanding (provided that if any Common Shares of the
Corporation so purchased or acquired by the Corporation are subsequently sold or otherwise
transferred by the Corporation and shall thereafter become outstanding, new Rights shall be issued
with respect thereto in accordance herewith).



Section 4. Form of Right Certificates. The Right Certificates (and the forms of election to purchase Preferred Shares and of
assignment to be printed on the reverse thereof) shall be substantially the same as Exhibit B
hereto, and may have such marks of identification or designation and such legends, summaries or
endorsements printed thereon as the Corporation 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 or
with any applicable rule or regulation made pursuant thereto or with any applicable rule or
regulation of any stock exchange or trading system, or to conform to usage. Subject to the
provisions of Sections 11 and Section 22 hereof, the Right Certificates shall entitle the holders
thereof to purchase such number of one one-thousandths (1/1,000ths) of a Preferred Share as shall
be set forth therein at the Purchase Price, but the number of such one one-thousandths (1/1,000ths)
of a Preferred Share and the Purchase Price shall be subject to adjustment as provided herein.



Section 5. Execution, Countersignature and Registration. The Right Certificates shall be executed on behalf of the Corporation by its President or any
Executive Vice President or Vice President of the Corporation, either manually or by facsimile
signature, shall have affixed thereto the Corporation’s seal or a facsimile thereof, and shall be
attested by the Treasurer, the Secretary, an Assistant Treasurer or an Assistant Secretary of the
Corporation, either manually or by facsimile signature. The Right Certificates shall be manually
countersigned by the Rights Agent and shall not be valid for any purpose unless so countersigned.
In case any officer of the Corporation who shall have signed any of the Right Certificates shall
cease to be such officer of the Corporation before countersignature by the Rights Agent and
issuance and delivery by the Corporation, such Right Certificates, nevertheless, may be
countersigned by the Rights Agent and issued and delivered by the Corporation with the same force
and effect as though the individual who signed such Right
Certificates had not ceased to be such officer of the Corporation; and any Right Certificate
may be signed on behalf of the Corporation by any individual who, at the actual date of the
execution of such Right Certificate, shall be a proper officer of the Corporation to sign such
Right Certificate, although at the date of the execution of this Agreement any such individual was
not such an officer.


 


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Following the Distribution Date, the Rights Agent will keep or cause to be kept, at its stock
transfer office, 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; Lost,
Stolen, Destroyed or Mutilated Right Certificates. Subject to the provisions of 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 earliest of the Redemption Date,
the Exchange Date or the Final Expiration Date, any Right Certificate or Right Certificates (other
than Right Certificates representing Rights that have become void pursuant to Section 11(a)(ii)
hereof or that have been exchanged pursuant to Section 24 hereof) may be transferred, split up,
combined or exchanged for another Right Certificate or Right Certificates entitling the registered
holder to purchase a like number of one one-thousandths (1/1,000ths) of a Preferred Share as the
Right Certificate or Right Certificates surrendered then entitled such holder to purchase. Any
registered holder desiring to transfer, split up, combine or exchange any Right Certificate or
Right Certificates shall make such request in writing delivered to the Rights Agent, and shall
surrender the Right Certificate or Right Certificates to be transferred, split up, combined or
exchanged at the stock transfer office of the Rights Agent. Thereupon the Rights Agent shall
countersign and deliver to the Person entitled thereto a Right Certificate or Right Certificates,
as the case may be, as so requested. The Corporation may require payment 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. Neither the Rights Agent nor the Corporation shall
be obligated to take any action whatsoever with respect to the transfer, split up, combination or
exchange of any such surrendered Right Certificate until the registered holder shall have duly
completed and executed the form of assignment on the reverse side of such Rights Certificate and
shall have provided such additional evidence of the identity of the Beneficial Owner (or such
former or proposed Beneficial Owner) thereof or such Beneficial Owner’s Affiliates or Associates as
the Rights Agent or the Corporation shall reasonably request.



Upon receipt by the Corporation 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 reasonably satisfactory to them, and, at the
Corporation’s request, reimbursement to the Corporation 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 Corporation will make and deliver a new Right Certificate of like
tenor to the Rights Agent for delivery to the registered holder in lieu of the Right Certificate so
lost, stolen, destroyed or mutilated.


 


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



(a) The registered holder of any Right Certificate (other than a Right Certificate
representing Rights that have become void pursuant to Section 11(a)(ii) hereof or that have been
exchanged pursuant to Section 24 hereof) may exercise the Rights evidenced thereby (except as
otherwise provided herein), in whole or in part (except that no fraction of a Right may be
exercised), at any time after the Distribution Date, upon surrender of the Right Certificate, with
the form of election to purchase on the reverse side thereof duly executed, to the Rights Agent at
the stock transfer office of the Rights Agent, together with payment of the Purchase Price for each
one one-thousandth (1/1,000th) of a Preferred Share as to which the Rights are exercised, at or
prior to the earliest of (i) the Close of Business on September 12, 2011 (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”).



(b) The purchase price (the “Purchase Price”) for each one one-thousandth (1/1,000th)
of a Preferred Share purchasable pursuant to the exercise of a Right shall initially be $20.00, and
shall be subject to adjustment from time to time as provided in Section 11 or 13 hereof, and shall
be payable in lawful money of the United States of America in accordance with paragraph (c) below.



(c) Upon receipt of a Right Certificate representing exercisable Rights, with the form of
election to purchase duly executed, accompanied by payment of the Purchase Price for the shares to
be purchased and an amount equal to any applicable transfer tax required to be paid by the holder
of such Right Certificate in accordance with Section 9 hereof by certified check, cashier’s check
or money order payable to the order of the Corporation, the Rights Agent shall thereupon promptly:
(i) (A) requisition from any transfer agent of the Preferred Shares certificates for the number of
Preferred Shares to be purchased and the Corporation hereby irrevocably authorizes any such
transfer agent to comply with all such requests, or (B) requisition from the depositary agent
depositary receipts representing such number of one one-thousandths (1/1,000ths) of a Preferred
Share as are to be purchased (in which case certificates for the Preferred Shares represented by
such receipts shall be deposited by the transfer agent of the Preferred Shares with such depositary
agent) and the Corporation hereby directs such depositary agent to comply with such request; (ii)
when appropriate, requisition from the Corporation the amount of cash 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, promptly deliver such cash to
or upon the order of the registered holder of such Right Certificate.



(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 to the registered holder of such Right
Certificate or to such holder’s duly authorized assigns, subject to the provisions of Section 14
hereof.



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 Corporation or to any of its agents, be
delivered to the Rights Agent for cancellation or in cancelled form, or, if surrendered to the
Rights Agent, shall be cancelled 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 Corporation 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 Corporation otherwise than
upon the exercise thereof. The Rights Agent shall deliver all cancelled Right Certificates to the
Corporation, or shall, at the written request of the Corporation, destroy such cancelled Right
Certificates, and, in such case, shall deliver a certificate of destruction thereof to the
Corporation.


 


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Section 9. Availability of Preferred Shares. The Corporation covenants and agrees that it will cause to be reserved and kept available out
of its authorized and unissued Preferred Shares or any Preferred Shares held in its treasury the
number of Preferred Shares that will be sufficient to permit the exercise in full of all
outstanding Rights in accordance with Section 7 hereof. The Corporation covenants and agrees that
it will take all such action as may be necessary to ensure that all Preferred Shares delivered upon
exercise of Rights shall, at the time of delivery of the certificates for such Preferred Shares
(subject to payment of the Purchase Price), be duly and validly authorized and issued and fully
paid and non-assessable shares.



The Corporation 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 Preferred Shares upon the exercise of Rights. The
Corporation shall not, however, be required to pay any transfer tax that may be payable in respect
of any transfer or delivery of Right Certificates to a Person other than, or the issuance or
delivery of certificates or depositary receipts for the Preferred Shares in a name other than that
of, the registered holder of the Right Certificate evidencing Rights surrendered for exercise or to
issue or to deliver any certificates or depositary receipts for Preferred Shares upon the exercise
of any Rights until any 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
Corporation’s reasonable satisfaction that no such tax is due.



Section 10. Preferred Shares Record Date. Each Person in whose name any certificate for Preferred Shares is issued upon the exercise of
Rights shall for all purposes be deemed to have become the holder of record of the Preferred Shares
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 Purchase 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 Preferred Shares transfer books of the Corporation
are closed, such Person shall be deemed to have become the record holder of such shares on, and
such certificate shall be dated, the next succeeding Business Day on which the Preferred Shares
transfer books of the Corporation are open. Prior to the exercise of the Rights
evidenced thereby, the holder of a Right Certificate shall not be entitled to any rights of a
holder of Preferred 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
Corporation, except as provided herein.



Section 11. Adjustment of Purchase Price, Number of Shares or Number of Rights. The Purchase Price, the number of Preferred 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.


 


11









 





(a) (i) In the event the Corporation shall at any time after the date of this Agreement (A)
declare or pay a dividend on the Preferred Shares payable in Preferred Shares, (B) subdivide the
outstanding Preferred Shares, (C) combine the outstanding Preferred Shares into a smaller number of
Preferred Shares or (D) issue any shares of its capital stock in a reclassification of the
Preferred Shares (including any such reclassification in connection with a consolidation or merger
in which the Corporation is the continuing or surviving corporation), except as otherwise provided
in this Section 11(a), the Purchase Price in effect at the time of the record date for such
dividend or of the effective date of such subdivision, combination or reclassification, and the
number and kind of shares of capital stock issuable on such date, 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 capital stock which, if such Right had been exercised
immediately prior to such date and at a time when the Preferred Shares transfer books of the
Corporation were open, such holder would have owned upon such exercise and been entitled to receive
by virtue of such dividend, subdivision, combination or reclassification; provided,
however, that in no event shall the consideration to be paid upon the exercise of one (1)
Right be less than the aggregate par value of the shares of capital stock of the Corporation
issuable upon exercise of one (1) Right.



(ii) Subject to Section 24 hereof, in the event any Person becomes an Acquiring Person, each
holder of a Right (except as provided below) shall thereafter have a right to receive, upon
exercise thereof at a price equal to the then current Purchase Price multiplied by the number of
one one-thousandths (1/1,000ths) of a Preferred Share for which a Right is then exercisable, in
accordance with the terms of this Agreement and in lieu of Preferred Shares, such number of Common
Shares of the Corporation as shall equal the result obtained by (A) multiplying the then current
Purchase Price by the number of one one-thousandths (1/1,000ths) of a Preferred Share for which a
Right is then exercisable and dividing that product by (B) fifty percent (50%) of the then current
per share market price of the Common Shares of the Corporation (determined pursuant to Section
11(d) hereof) on the date of the occurrence of such event (such number of shares, the
“Adjustment Shares”). In the event that any Person shall become an Acquiring Person and
the Rights shall then be outstanding, the Corporation shall not take any action that would
eliminate or diminish the benefits intended to be afforded by the Rights acquired or beneficially
owned by any Person other than an Acquiring Person (or any Associate or Affiliate of such Acquiring
Person).



From and after the occurrence of such event, any Rights that are or were acquired or
beneficially owned by any Acquiring Person (or any Associate or Affiliate of such Acquiring
Person) shall be void, and any holder of such Rights shall thereafter have no right to
exercise such Rights under any provision of this Agreement. No Right Certificate shall be issued
pursuant to Section 3 hereof that represents Rights beneficially owned by an Acquiring Person whose
Rights would be void pursuant to the preceding sentence or any Associate or Affiliate thereof; no
Right Certificate shall be issued at any time upon the transfer of any Rights to an Acquiring
Person whose Rights would be void pursuant to the preceding sentence or any Associate or Affiliate
thereof or to any nominee of such Acquiring Person, Associate or Affiliate; and any Right
Certificate delivered to the Rights Agent for transfer to an Acquiring Person whose Rights would be
void pursuant to the preceding sentence shall be cancelled.


 


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Neither the Rights Agent nor the Corporation shall be obligated to undertake any action with
respect to the registered holder of a Right Certificate upon the occurrence of any purported
exercise unless such registered holder shall have (A) 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 (B) provided such additional evidence of the identity
of the Beneficial Owner (or former or proposed Beneficial Owner) thereof or the Affiliates or
Associates of such Beneficial Owner (or former or proposed Beneficial Owner) as the Corporation
shall reasonably request.



(iii) In the event that, after any Person becomes an Acquiring Person, there shall not be
sufficient Common Shares issued but not outstanding or authorized but unissued to permit the
exercise in full of Rights in accordance with subparagraph (ii) above, the Corporation shall take
all such action as may be necessary to authorize additional Common Shares for issuance upon
exercise of the Rights; provided, however, that if the Corporation determines that
it is unable to cause the authorization of a sufficient number of additional Common Shares, then
the Corporation, with respect to each Right and to the extent necessary and permitted by applicable
law and any agreements or instruments in effect on the date of this Agreement to which it is a
party, shall: (A) determine the excess of (1) the value of the Adjustment Shares issuable upon the
exercise of a Right (the “Current Value”) over (2) the price payable for such Adjustment
Shares in accordance with subparagraph (ii) above (such excess, the “Spread”) and (B) with
respect to each Right (other than Rights that have become void pursuant to Section 11(a)(ii) hereof
or that have been exchanged pursuant to Section 24 hereof), make adequate provision to substitute
for the Adjustment Shares, upon the exercise of a Right and payment of the applicable price payable
for such Adjustment Shares in accordance with subparagraph (ii) above, (1) cash, (2) a reduction in
the price payable for such Adjustment Shares in accordance with subparagraph (ii) above, (3) Common
Shares or other equity securities of the Corporation (including, without limitation, shares or
fractions of shares of preferred stock, such as the Preferred Shares, which the Board of Directors
of the Corporation has deemed in good faith to have substantially the same value or economic rights
as Common Shares (such shares or fractions of shares of preferred stock being referred to as
“Common Stock Equivalents”)), (4) debt securities of the Corporation, (5) other assets, or
(6) 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 of the Corporation based upon
the advice of a nationally recognized investment banking firm selected by the Board of Directors of
the Corporation; provided, however, that if the Corporation shall not have made
adequate provision to deliver value pursuant to clause (B) above within thirty (30) days following
the time that any Person becomes an Acquiring Person, then the Corporation shall be obligated to
deliver, to the
extent necessary and permitted by applicable law and any agreements or instruments in effect
on the date of this Agreement to which it is a party, upon the surrender for exercise of a Right
and without requiring payment of the price payable for such Adjustment Shares in accordance with
subparagraph (ii) above, Common Shares (to the extent available) and then, if necessary, cash,
which Common Shares and/or cash have an aggregate value equal to the Spread. If the Board of
Directors of the Corporation shall determine in good faith that it is likely that sufficient
additional Common Shares could be authorized for issuance upon exercise in full of the Rights, the
thirty (30) day period set forth above may be extended and re-extended to the extent necessary, but
not more than ninety (90) days after the time that any Person becomes an Acquiring Person, in order
that the Corporation may seek shareholder approval for the authorization of such additional shares
(such thirty (30) day period, as it may be extended or re-extended, the “Substitution
Period”). To the extent that the Corporation determines that some action need be taken
pursuant to the first and/or


 


13









 






second sentences of this Section 11(a)(iii), the Corporation (1) shall
provide that such action shall apply uniformly to all outstanding Rights (other than Rights that
have become void pursuant to Section 11(a)(ii) hereof), and (2) 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
Corporation 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 and the Corporation shall promptly provide the Rights Agent copies of such
announcements. For purposes of this Section 11(a)(iii), the value of each Adjustment Share shall
be the current per share market price of a Common Share on the date that any Person becomes an
Acquiring Person and the value of any Common Stock Equivalent shall be deemed to have the same
value as the Common Shares on such date. The Board of Directors of the Corporation may, but shall
not be required to, establish procedures to allocate the right to receive Common Shares upon the
exercise of the Rights among the holders of Rights pursuant to this Section 11(a)(iii).



(b) In case the Corporation shall fix a record date for the issuance of rights, options or
warrants to all holders of Preferred Shares entitling them (for a period expiring within 45
calendar days after such record date) to subscribe for or purchase Preferred Shares (or shares
having the same rights, privileges and preferences as the Preferred Shares (“Equivalent
Preferred Shares”)) or securities convertible into Preferred Shares or Equivalent Preferred
Shares at a price per Preferred Share or Equivalent Preferred Share (or having a conversion price
per share, if a security convertible into Preferred Shares or Equivalent Preferred Shares) less
than the then current per share market price of the Preferred Shares (as defined in Section 11(d)
hereof) on such record date, the Purchase Price to be in effect after such record date shall be
determined by multiplying the Purchase Price in effect immediately prior to such record date by a
fraction, the numerator of which shall be the number of Preferred Shares outstanding on such record
date plus the number of Preferred Shares which the aggregate offering price of the total number of
Preferred Shares and/or Equivalent Preferred Shares so to be offered (and/or the aggregate initial
conversion price of the convertible securities so to be offered) would purchase at such current
market price and the denominator of which shall be the number of Preferred Shares outstanding on
such record date plus the number of additional Preferred Shares and/or Equivalent Preferred Shares
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 one (1) Right be less than the aggregate par value of the shares of
capital stock of the Corporation issuable upon exercise of one (1) 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 as determined in good faith by the Board of
Directors of the Corporation, whose determination shall be described in a statement filed with the
Rights Agent and shall be binding on the Rights Agent and holders of the Rights. Preferred Shares
owned by or held for the account of the Corporation shall not be deemed outstanding for the purpose
of any such computation. Such adjustment shall be made successively whenever such a record date is
fixed; and, in the event that such rights, options or warrants are not so issued, the Purchase
Price shall be adjusted to be the Purchase Price which would then be in effect if such record date
had not been fixed.


 


14









 





(c) In case the Corporation shall fix a record date for the making of a distribution to all
holders of the Preferred Shares (including any such distribution made in connection with a
consolidation or merger in which the Corporation is the continuing or surviving corporation) of
evidences of indebtedness or assets (other than a regular quarterly cash dividend or a dividend
payable in Preferred Shares) or subscription rights or warrants (excluding those referred to in
Section 11(b) hereof), the Purchase Price to be in effect after such record date shall be
determined by multiplying the Purchase Price in effect immediately prior to such record date by a
fraction, the numerator of which shall be the then-current per share market price of the Preferred
Shares on such record date, less the fair market value (as determined in good faith by the Board of
Directors of the Corporation, whose determination shall be described in a statement filed with the
Rights Agent and shall be binding on the Rights Agent and holders of the Rights) of the portion of
the assets or evidences of indebtedness so to be distributed or of such subscription rights or
warrants applicable to one (1) Preferred Share and the denominator of which shall be such
then-current per share market price of the Preferred Shares on such record date; provided,
however, that in no event shall the consideration to be paid upon the exercise of one (1)
Right be less than the aggregate par value of the shares of capital stock of the Corporation to be
issued upon exercise of one (1) 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 Purchase Price
shall again be adjusted to be the Purchase Price which would then be in effect if such record date
had not been fixed.



(d) (i) For the purpose of any computation hereunder, the “current per share market price” of
any security (a “Security” for the purpose of this Section 11(d)(i)) on any date shall be
deemed to be the average of the daily closing prices per share of such Security for the thirty (30)
consecutive Trading Days immediately prior to such date; provided, however, that,
in the event that the current per share market price of the Security is determined during a period
following the announcement by the issuer of such Security of (A) a dividend or distribution on such
Security payable in shares of such Security or Securities convertible into such shares, or (B) any
subdivision, combination or reclassification of such Security and prior to the expiration of thirty
(30) Trading Days after the ex-dividend date for such dividend or distribution, or the record date
for such subdivision, combination or reclassification, then, and in each such case, the current per
share market price shall be appropriately adjusted to reflect the current market price per share
equivalent of such Security. 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 Security is 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 the Security is listed or
admitted to trading or, if the Security is not listed or admitted to trading on any national
securities exchange, the last quoted price or, if not so quoted, the average of the high bid and
low asked prices in the over-the-counter market, as reported by NASDAQ or such other system then in
use, or, if on any such date the Security is not 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 the
Security selected by the Board of Directors of the Corporation. The term “Trading Day”
shall mean a day on which the principal national securities exchange on which the Security is
listed or admitted to trading is open for the transaction of business, or, if the Security is not
listed or admitted to trading on any national securities exchange, a Business Day.


 


15









 





(ii) For the purpose of any computation hereunder, the “current per share market price” of the
Preferred Shares shall be determined in accordance with the method set forth in Section 11(d)(i)
hereof; provided, however, that if the Preferred Shares are not publicly traded,
the “current per share market price” of the Preferred Shares shall be conclusively deemed to be the
current per share market price of the Common Shares as determined pursuant to Section 11(d)(i)
hereof (appropriately adjusted to reflect any stock split, stock dividend or similar transaction
occurring after the date hereof), multiplied by one thousand (1,000); and provided,
further, that if neither the Common Shares nor the Preferred Shares are publicly held or so
listed or traded, “current per share market price” of the Preferred Shares shall mean the fair
value per share as determined in good faith by the Board of Directors of the Corporation, whose
determination shall be described in a statement filed with the Rights Agent and shall be binding on
the Rights Agent and holders of the Rights.



(e) Anything herein to the contrary notwithstanding, no adjustment in the Purchase Price shall
be required unless such adjustment would require an increase or decrease of at least one percent
(1%) in the Purchase Price; provided, however, that any adjustments that 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 ten-millionth (1/10,000,000th) of a Preferred Share or one one
hundred-thousandth (1/100,000th) of any other share or security as the case may be.
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
that requires such adjustment or (ii) the date of the expiration of the right to exercise any
Rights.



(f) If, as a result of an adjustment made pursuant to Section 11(a) hereof, the holder of any
Right thereafter exercised shall become entitled to receive any shares of capital stock of the
Corporation other than Preferred Shares, 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 Shares
contained in this Section 11, and the provisions of Sections 7, 9, 10 and 13 hereof with respect to
the Preferred Shares shall apply on like terms to any such other shares.



(g) All Rights originally issued by the Corporation subsequent to any adjustment made to the
Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the
number of one one-thousandths (1/1,000ths) of a Preferred Share purchasable from time to time
hereunder upon exercise of the Rights, all subject to further adjustment as provided herein.



(h) Unless the Corporation shall have exercised its election as provided in Section 11(i)
hereof, upon each adjustment of the Purchase Price as a result of the calculations made in Sections
11(b) and (c) hereof, each Right outstanding immediately prior to the making of such adjustment
(other than Rights that have become void pursuant to Section 11(a)(ii) hereof or that have been
exchanged pursuant to Section 24 hereof) shall thereafter evidence the right to purchase, at the
adjusted Purchase Price, that number of one one-thousandths (1/1,000ths) of a Preferred Share
(calculated to the nearest one ten-millionth (1/10,000,000th) of a Preferred Share) obtained by (A)
multiplying (x) the number of one one-thousandths (1/1,000ths) of a share covered by a Right
immediately prior to this adjustment by (y) the Purchase Price in effect immediately prior to such
adjustment of the Purchase Price and (B) dividing the product so obtained by the Purchase Price in
effect immediately after such adjustment of the Purchase Price.


 


16









 





(i) The Corporation may elect, on or after the date of any adjustment of the Purchase Price,
to adjust the number of Rights in substitution for any adjustment in the number of one
one-thousandths (1/1,000ths) of a Preferred Share purchasable upon the exercise of a Right. Each
of the Rights outstanding after such adjustment of the number of Rights (other than Rights that
have become void pursuant to Section 11(a)(ii) hereof or that have been exchanged pursuant to
Section 24 hereof) shall be exercisable for the number of one one-thousandths (1/1,000ths) of a
Preferred Share 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 one hundred-thousandth (1/100,000th)) obtained by dividing the
Purchase Price in effect immediately prior to adjustment of the Purchase Price by the Purchase
Price in effect immediately after adjustment of the Purchase Price. The Corporation 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 be the date on which the Purchase 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 Corporation 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 Corporation, 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 Corporation, 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 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 Purchase Price or in the number of one
one-thousandths (1/1,000ths) of a Preferred Share issuable upon the exercise of the Rights, the
Right Certificates theretofore and thereafter issued may continue to express the Purchase Price and
the number of one one-thousandths (1/1,000ths) of a Preferred Share which were expressed in the
initial Right Certificates issued hereunder.



(k) Before taking any action that would cause an adjustment reducing the Purchase Price below
one one-thousandth (1/1,000th) of the then par value, if any, of the Preferred Shares issuable upon
exercise of the Rights, the Corporation shall take any corporate action that may, in the opinion of
its counsel, be necessary in order that the Corporation may validly and legally issue fully paid
and non-assessable Preferred Shares at such adjusted Purchase Price.


 


17









 





(l) In any case in which this Section 11 shall require that an adjustment in the Purchase
Price be made effective as of a record date for a specified event, the Corporation may elect to
defer until the occurrence of such event the issuing to the holder of any Right exercised after
such record date of the Preferred Shares and other capital stock or securities of the Corporation,
if any, issuable upon such exercise over and above the Preferred Shares and other capital stock or
securities of the Corporation, if any, issuable upon such exercise on the basis of the Purchase
Price in effect prior to such adjustment; provided, however, that the Corporation
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 Corporation shall be
entitled to make such reductions in the Purchase Price, in addition to those adjustments expressly
required by this Section 11, as and to the extent that it, in its sole discretion, shall determine
to be advisable in order that any consolidation or subdivision of the Preferred Shares, issuance
wholly for cash of any Preferred Shares at less than the current market price, issuance wholly for
cash of Preferred Shares or securities which by their terms are convertible into or exchangeable
for Preferred Shares, dividends on Preferred Shares payable in Preferred Shares or issuance of
rights, options or warrants referred to in Section 11(b) hereof, hereafter made by the Corporation
to holders of the Preferred Shares shall not be taxable to such stockholders.



(n) In the event that, at any time after the date of this Agreement and prior to the
Distribution Date, the Corporation shall (i) declare or pay any dividend on the Common Shares
payable in Common Shares, or (ii) effect a subdivision, combination or consolidation of the Common
Shares (by reclassification or otherwise than by payment of dividends in Common Shares) into a
greater or lesser number of Common Shares, then, in any such case, (A) the number of one
one-thousandths (1/1,000ths) of a Preferred Share purchasable after such event upon proper exercise
of each Right shall be determined by multiplying the number of one one-thousandths (1/1,000ths) of
a Preferred Share so purchasable immediately prior to such event by a fraction, the numerator of
which is the number of Common Shares outstanding immediately before such event and the denominator
of which is the number of Common Shares outstanding immediately after such event, and (B) each
Common Share outstanding immediately after such
event shall have issued with respect to it that number of Rights which each Common Share
outstanding immediately prior to such event had issued with respect to it.



(o) With respect to any dividend, subdivision, combination, consolidation or other event, the
adjustments provided for in this Section 11 shall be made successively (and, in the event of the
declaration and payment of a dividend, without duplication) whenever such event is effected.



Section 12. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made as provided in Section 11 or 13 hereof, the Corporation shall
promptly (a) prepare a certificate setting forth such adjustment and a brief statement of the facts
accounting for such adjustment, (b) file with the Rights Agent and with each transfer agent for the
Common Shares or the Preferred Shares and the Securities and Exchange Commission a copy of such
certificate and (c) if such adjustment occurs at any time after the Distribution Date, mail a brief
summary thereof to each holder of a Right Certificate in accordance with Section 26 hereof.


 


18









 





Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power. In the event, directly or indirectly, at any time after a Person becomes an Acquiring Person,
(a) the Corporation shall consolidate with, or merge with and into, any other Person in a
transaction in which the Corporation is not the continuing or surviving corporation of such merger
or consolidation, (b) any Person shall consolidate with the Corporation, or merge with and into the
Corporation and the Corporation shall be the continuing or surviving corporation of such merger or
consolidation and, in connection with such merger or consolidation, all or part of the Common
Shares shall be changed into or exchanged for stock or other securities of any other Person (or the
Corporation) or cash or any other property, or (c) the Corporation shall sell or otherwise transfer
(or one (1) or more of its Subsidiaries shall sell or otherwise transfer), in one (1) or more
transactions, assets or earning power aggregating fifty percent (50%) or more of the assets or
earning power of the Corporation and its Subsidiaries (taken as a whole) to any other Person other
than the Corporation or one (1) or more of its wholly-owned Subsidiaries (each, a “Business
Combination”), then, and in each such case, proper provision shall be made so that (i) each
holder of a Right (except as otherwise provided herein, and other than Rights that have become void
pursuant to Section 11(a)(ii) hereof or that have been exchanged pursuant to Section 24 hereof)
shall thereafter have the right to receive, upon the exercise thereof at a price equal to the then
current Purchase Price multiplied by the number of one one-thousandths (1/1,000ths) of a Preferred
Share for which a Right is then exercisable, in accordance with the terms of this Agreement and in
lieu of Preferred Shares, such number of Common Shares of such other Person (including the
Corporation as successor thereto or as the surviving corporation) as shall equal the result
obtained by (A) multiplying the then current Purchase Price by the number of one one-thousandths
(1/1,000ths) of a Preferred Share for which a Right is then exercisable and dividing that product
by (B) fifty percent (50%) of the then current per share market price of the Common Shares
(determined pursuant to Section 11(d) hereof) of such other Person (including the Corporation as
successor thereto or as the surviving corporation) on the date of consummation of such
consolidation, merger, sale or transfer; (ii) the issuer of such Common Shares shall thereafter be
liable for, and shall assume, by virtue of such consolidation, merger,
sale or transfer, all the obligations and duties of the Corporation pursuant to this
Agreement; (iii) the term “Corporation” shall thereafter be deemed to refer to such issuer;
and (iv) such issuer shall take such steps (including, but not limited to, the reservation of a
sufficient number of its Common Shares) 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 Common Shares thereafter deliverable upon the exercise of the Rights. The
Corporation shall not consummate any such consolidation, merger, sale or transfer unless, prior
thereto, the Corporation and such issuer shall have executed and delivered to the Rights Agent a
supplemental agreement so providing. The Corporation shall not enter into any transaction of the
kind referred to in this Section 13 if at the time of such transaction there are any rights,
warrants, instruments or securities outstanding or any agreements or arrangements that, as a result
of the consummation of such transaction, would eliminate or substantially diminish the benefits
intended to be afforded by the Rights. The provisions of this Section 13 shall similarly apply to
successive mergers or consolidations or sales or other transfers.


 


19









 





Section 14. Fractional Rights and Fractional Shares.



(a) The Corporation shall not be required to issue fractions of Rights or to distribute Right
Certificates that evidence fractional Rights. In lieu of such fractional Rights, there shall be
paid 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 current
market value of a whole Right. For the purposes of this Section 14(a), the current market value of
a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to the
date on which such fractional Rights would have been otherwise issuable. The closing price for any
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 Rights 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 the
Rights are listed or admitted to trading or, if the Rights are not listed or admitted to trading on
any national securities exchange, the last quoted price or, if not so quoted, the average of the
high bid and low asked prices in the over-the-counter market, as reported by NASDAQ or such other
system then in use or, if on any such date the Rights are not 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 the Rights selected by the Board of Directors of the Corporation. If on any such date no
such market maker is making a market in the Rights, the fair value of the Rights on such date as
determined in good faith by the Board of Directors of the Corporation shall be used.



(b) The Corporation shall not be required to issue fractions of Preferred Shares (other than
fractions which are integral multiples of one one-thousandth (1/1,000th) of a Preferred Share) upon
exercise of the Rights or to distribute certificates that evidence fractional Preferred Shares
(other than fractions which are integral multiples of one one-thousandth (1/1,000th) of a Preferred
Share). Fractions of Preferred Shares in integral multiples of one one-thousandth (1/1,000th) of a
Preferred Share may, at the election of the Corporation, be evidenced by depositary receipts,
pursuant to an appropriate agreement between the Corporation and a
depositary selected by it; provided that such agreement shall provide that the holders
of such depositary receipts shall have all the rights, privileges and preferences to which they are
entitled as beneficial owners of the Preferred Shares represented by such depositary receipts. In
lieu of fractional Preferred Shares that are not integral multiples of one one-thousandth
(1/1,000th) of a Preferred Share, the Corporation shall 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 current market value of one Preferred Share. For the purposes of this
Section 14(b), the current market value of a Preferred Share shall be the closing price of a
Preferred Share (as determined pursuant to the second sentence of Section 11(d)(i) hereof) for the
Trading Day immediately prior to the date of such exercise.



(c) The holder of a Right, by the acceptance of the Right, expressly waives such holder’s
right to receive any fractional Rights or any fractional shares upon exercise of a Right (except as
provided above).


 


20









 





Section 15. Rights of Action. All rights of action in respect of this Agreement, excepting the rights of action given to the
Rights Agent under Section 18 hereof, are vested in the respective registered holders of the Right
Certificates (and, prior to the Distribution Date, the registered holders of the Common Shares);
and any registered holder of any Right Certificate (or, prior to the Distribution Date, of the
Common Shares), 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 Shares), may, in such holder’s own
behalf and for such holder’s own benefit, enforce, and may institute and maintain any suit, action
or proceeding against the Corporation to enforce, or otherwise act in respect of, such holder’s
right to exercise the Rights 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 will be entitled to specific
performance of the obligations under, and injunctive relief against actual or threatened violations
of the obligations of any Person subject to, this Agreement.



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



(a) prior to the Distribution Date, the Rights will be transferable only in connection with
the transfer of the Common Shares;



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



(c) the Corporation and the Rights Agent may deem and treat the person in whose name the Right
Certificate (or, prior to the Distribution Date, the associated Common Shares certificate) is
registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any
notations of ownership or writing on the Right Certificate or the associated
Common Shares certificate made by anyone other than the Corporation or the Rights Agent) for
all purposes whatsoever, and neither the Corporation 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 Corporation nor
the Rights Agent shall have any liability to any holder of a Right or other Person as a 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 obligation; provided,
however, the Corporation must use its best efforts to have any such injunction, order,
decree or ruling lifted or otherwise overturned as promptly as practicable.


 


21









 





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 Preferred Shares or any other securities of the
Corporation that 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 Corporation 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 26 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. The Corporation agrees to pay to the Rights Agent reasonable compensation for all services
rendered by it hereunder, and, from time to time, on demand of the Rights Agent, its reasonable and
documented expenses and counsel fees and other disbursements incurred in the administration and
execution of this Agreement and the exercise and performance of its duties hereunder. The
Corporation 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 in the premises.



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 for the Preferred Shares or Common Shares or for
other securities of the Corporation, instrument of assignment or transfer, power of attorney,
endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or other paper
or document believed by it to be genuine and to be signed, executed and, where necessary, verified
or acknowledged, by the proper person or persons, or otherwise upon the advice of counsel as set
forth in Section 20 hereof.



Section 19. Merger or Consolidation or Change of Name of Rights Agent. 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 stock transfer or corporate trust powers 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 Rights Agent 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.


 


22









 





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 imposed by this Agreement upon the
following terms and conditions, by all of which the Corporation and the holders of Right
Certificates, by their acceptance thereof, shall be bound:



(a) The Rights Agent may consult with legal counsel (who may be legal counsel for the
Corporation), 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 be proved or established by the Corporation prior
to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect
thereof be herein specifically prescribed) may be deemed to be conclusively proved and established
by a certificate signed by any one of the President or any Executive Vice President or Vice
President of the Corporation, and attested by the Treasurer, the Secretary, any Assistant Treasurer
or any Assistant Secretary of the Corporation and delivered to the Rights Agent; and 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.



(c) The Rights Agent shall be liable hereunder to the Corporation and any other Person 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 Corporation 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 Corporation 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 11(a)(ii) hereof) or any adjustment in the terms of the Rights (including the
manner, method or amount thereof) provided for in Sections 11, 13, 23 or 24 hereof, or the
ascertaining of the existence of facts that would require any such change or adjustment (except
with respect to the exercise of Rights evidenced by Right Certificates after actual notice that
such change or adjustment is required); nor shall it by any act hereunder be deemed to make any
representation or warranty as to the authorization or reservation of any Preferred Shares to be
issued pursuant to this Agreement or any Right Certificate or as to whether any Preferred Shares
will, when issued, be validly authorized and issued, fully paid and non-assessable.


 


23









 





(f) The Corporation 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 from any one of the President, any Executive Vice President
or Vice President, the Treasurer, the Secretary, any Assistant Treasurer or any Assistant Secretary
of the Corporation, and 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 by it in good faith in
accordance with instructions of any such officer or for any delay in acting while waiting for those
instructions.



(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 Corporation or become
pecuniarily interested in any transaction in which the Corporation may be interested, or contract
with or lend money to the Corporation or otherwise act as fully and freely as though it were not
Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent from acting in
any other capacity for the Corporation 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, and the
Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct of
any such attorneys or agents or for any loss to the Corporation resulting from any such act,
default, neglect or misconduct, provided that reasonable care was exercised in the selection and
continued employment thereof.



(j) If, with respect to any Right Certificate surrendered to the Rights Agent for exercise or
transfer, the form of assignment or form of election to purchase, as the case may be, has either
not been completed and executed or modifies the certification in any manner, the Rights Agent shall
not take any further action with respect to such requested exercise of transfer without first
consulting with the Corporation.



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 Corporation and to each
transfer agent of the Common Shares or Preferred Shares by registered or certified mail, and to the
holders of the Right Certificates by first-class mail. The Corporation may remove the Rights Agent
or any successor Rights Agent upon thirty (30) days’ notice in writing, mailed to the Rights Agent
or successor Rights Agent, as the case may be, and to each transfer agent of the Common Shares or
Preferred Shares by registered or certified mail, and to the holders of the Right Certificates by
first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become
incapable of acting, the Corporation shall appoint a successor to the Rights Agent. If the
Corporation 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 resigning or incapacitated Rights Agent or by the holder of a Right Certificate (which
holder shall, with such notice, submit such holder’s Right Certificate for


 


24









 






inspection by the Corporation), then 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 Corporation or by such a court, shall be a corporation organized and doing
business under the laws of the United States or of the State of Delaware (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 Delaware), in good standing, having an office in the State of Delaware, which is
authorized under such laws to exercise corporate trust or stock transfer 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 $50 million. 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 Corporation shall file notice thereof in writing with the predecessor Rights Agent
and each transfer agent of the Common Shares or Preferred Shares, and mail a notice thereof in
writing to the registered holders of the Right Certificates. 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
Corporation may, at its option, issue new Right Certificates evidencing Rights in such form as may
be approved by the Board of Directors of the Corporation to reflect any adjustment or change in the
Purchase Price and the number or kind or class of shares or other securities or property
purchasable under the Right Certificates made in accordance with the provisions of this Agreement.



Section 23. Redemption.



(a) The Board of Directors of the Corporation may, at its option, at any time prior to such
time as any Person becomes an Acquiring Person, redeem all but not less than all of the then
outstanding Rights at a redemption price of $0.01 per Right, appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date hereof (such redemption
price being hereinafter referred to as the “Redemption Price”). The Corporation may, at
its option, pay the Redemption Price in cash, Corporation Common Shares (including fractional
shares, based on the current per share market price of Corporation Common Shares at the time of
redemption) or any other form of consideration deemed appropriate by the Board of Directors of the
Corporation. The redemption of the Rights by the Board of Directors of the Corporation may be made
effective at such time, on such basis and with such conditions as the Board of Directors of the
Corporation, in its sole discretion, may establish.


 


25









 





(b) Immediately upon the action of the Board of Directors of the Corporation ordering the
redemption of the Rights pursuant to paragraph (a) of this Section 23 (or at such later time as the
Board of Directors of the Corporation may establish for the effectiveness of such redemption), 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.
The Corporation shall promptly give public notice of any such redemption; provided,
however, that the failure to give, or any defect in, any such notice shall not affect the
validity of such redemption. Within ten (10) days after such action of the Board of Directors of
the Corporation ordering the redemption of the Rights or the effectiveness of the redemption of the
Rights pursuant to Section 23(a), as the case may be, the Corporation shall mail a notice of
redemption to all the holders of the then outstanding Rights at their last addresses as they appear
upon the registry books of the Rights Agent or, prior to the issuance of Right Certificates, on the
registry books of the transfer agent for the Common Shares. 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 Corporation 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 in Section 24 hereof, and other than in connection with the purchase of Common
Shares prior to the Distribution Date.



Section 24. Exchange.



(a) The Board of Directors of the Corporation may, at its option, at any time after any Person
becomes an Acquiring Person, exchange all or part of the then outstanding and exercisable Rights
(which shall not include Rights that have become void pursuant to the provisions of Section
11(a)(ii) hereof) for Common Shares at an exchange ratio of one (1) Common Share per Right,
appropriately adjusted to reflect any adjustment in the number of Rights pursuant to Section 11(i)
(such exchange ratio being hereinafter referred to as the “Exchange Ratio”).
Notwithstanding the foregoing, the Board of Directors of the Corporation shall not be empowered to
effect such exchange at any time after any Person (other than the Corporation, any Subsidiary of
the Corporation, any employee benefit plan of the Corporation or any such Subsidiary, or any entity
(including any trustee) holding Common Shares for or pursuant to the terms of any such plan),
together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of fifty
percent (50%) or more of the Common Shares then outstanding.



(b) Immediately upon the action of the Board of Directors of the Corporation ordering the
exchange of any Rights pursuant to paragraph (a) of this Section 24 and without any further action
and without any notice, the right to exercise such Rights shall terminate and the only right
thereafter of a holder of such Rights shall be to receive that number of Common Shares equal to the
number of such Rights held by such holder multiplied by the Exchange Ratio. The Corporation shall
promptly give public notice of any such exchange; provided, however, that the
failure to give, or any defect in, such notice shall not affect the validity of such exchange. The
Corporation 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 exchange will state the method by which the exchange of
the Common Shares 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 void pursuant to
the provisions of Section 11(a)(ii) hereof) held by each holder of Rights.


 


26









 





(c) In the event that there shall not be sufficient Common Shares issued but not outstanding
or authorized but unissued to permit any exchange of Rights as contemplated in accordance with this
Section 24, the Corporation shall take all such action as may be necessary to authorize additional
Common Shares for issuance upon exchange of the Rights. In the event the Corporation shall, after
good faith effort, be unable to take all such action as may be necessary to authorize such
additional Common Shares, the Corporation shall substitute, for each Common Share that would
otherwise be issuable upon exchange of a Right, a number of Preferred Shares or fraction thereof
such that the current per share market price of one (1) Preferred Share multiplied by such number
or fraction is equal to the current per share market price of one (1) Common Share as of the date
of issuance of such Preferred Shares or fraction thereof.



(d) The Corporation shall not be required to issue fractions of Common Shares or to distribute
certificates which evidence fractional Common Shares. In lieu of such
fractional Common Shares, the Corporation shall pay to the registered holders of the Right
Certificates with regard to which such fractional Common Shares would otherwise be issuable an
amount in cash equal to the same fraction of the current market value of a whole Common Share. For
the purposes of this paragraph (d), the current market value of a whole Common Share shall be the
closing price of a Common Share (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. Securities Registration; Blue Sky Compliance. The Corporation shall use its best efforts to (a) as soon as practicable following such time
as any Person becomes an Acquiring Person (or such earlier time following the Distribution Date as
may be required by law), prepare and file a registration statement on an appropriate form under the
Securities Act with respect to the securities purchasable upon exercise of the Rights, (b) cause
such registration statement to become effective as soon as practicable after such filing, and (c)
cause such registration statement to remain effective (with a prospectus at all times meeting the
requirements of the Securities Act) until the earlier of (i) the date as of which Rights are no
longer exercisable for such securities and (ii) the Expiration Date. The Corporation shall also
use its best efforts to take such action as may be necessary or appropriate under, or to ensure
compliance with, the securities or “blue sky” laws of the various states in connection with the
exercise of the Rights. The Corporation may temporarily suspend the exercisability of the Rights
for a reasonable period of time after any Person becomes an Acquiring Person, such period of time
to be sufficient to prepare and file such registration statement and permit it to become effective.
Upon any such suspension, the Corporation shall promptly make a public announcement stating that
the exercisability of the Rights has been temporarily suspended and shall make a similar prompt
public announcement at such time as the suspension is no longer in effect.


 


27









 





Section 26. Notice of Certain Events.



(a) In case the Corporation shall, at any time after the Distribution Date, propose (i) to pay
any dividend payable in stock of any class to the holders of the Preferred Shares or to make any
other distribution to the holders of the Preferred Shares (other than a regular quarterly cash
dividend), (ii) to offer to the holders of the Preferred Shares rights or warrants to subscribe for
or to purchase any additional Preferred Shares or shares of stock of any class or any other
securities, rights or options, (iii) to effect any reclassification of the Preferred Shares (other
than a reclassification involving only the subdivision of outstanding Preferred Shares), (iv) to
effect any consolidation or merger into or with, or to effect any sale or other transfer (or to
permit one (1) or more of its Subsidiaries to effect any sale or other transfer), in one or more
transactions, of fifty percent (50%) or more of the assets or earning power of the Corporation and
its Subsidiaries (taken as a whole) to, any other Person, (v) to effect the liquidation,
dissolution or winding up of the Corporation, or (vi) to declare or pay any dividend on the Common
Shares payable in Common Shares or to effect a subdivision, combination or consolidation of the
Common Shares (by reclassification or otherwise than by payment of dividends in Common Shares),
then, in each such case, the Corporation shall give to each holder of a Right Certificate, in
accordance with Section 27 hereof, a notice of such proposed action, which shall specify the record
date for the purposes of such stock dividend, or 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 Common Shares and/or Preferred Shares, 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 ten (10) days prior to the record date for determining holders of the Preferred
Shares for purposes of such action, and, in the case of any such other action, at least ten (10)
days prior to the date of the taking of such proposed action or the date of participation therein
by the holders of the Common Shares and/or Preferred Shares, whichever shall be the earlier.



(b) In case the event set forth in Section 11(a)(ii) hereof shall occur, then the Corporation
shall, as soon as practicable thereafter, give to each holder of a Right Certificate, in accordance
with Section 27 hereof, a notice of the occurrence of such event, which notice shall describe such
event and the consequences of such event to holders of Rights under Section 11(a)(ii) hereof.



Section 27. 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 Corporation shall be sufficiently given or made if
sent by first-class mail, postage prepaid, addressed (until another address is filed in writing
with the Rights Agent) as follows:




GTSI Corp.


2553 Dulles View Drive, #100

Herndon, Virginia 20171-5219

Attention: Corporate Secretary


 


28









 





Subject to the provisions of Section 21 hereof, any notice or demand authorized by this Agreement
to be given or made by the Corporation 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,
addressed (until another address is filed in writing with the Corporation) as follows:




American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, NY 11219

Attn: General Counsel



Notices or demands authorized by this Agreement to be given or made by the Corporation or the
Rights Agent to the holder of any Right Certificate 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 Corporation.



Section 28. Supplements and Amendments; Administration and Interpretation.



(a) At any time prior to such time as any Person becomes an Acquiring Person, a majority of
the Board of Directors of the Corporation may, and the Rights Agent shall, if so directed,
supplement or amend any provision of this Agreement, including, without
limitation, the definition of Acquiring Person set forth in Section 1(a) hereof, without the
approval of any holders of Rights.




(b) Except as otherwise provided in Section 28(c) hereof:



(i) The Board of Directors of the Corporation 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 the Corporation, 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 deemed necessary or advisable for the
administration of this Agreement (including a determination to redeem or not redeem the Rights, to
exchange or not exchange the Rights for Common Shares, or to amend or supplement this Agreement).



(ii) 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 of the Corporation in good faith shall (x) be final, conclusive and
binding on the Corporation, the Rights Agent and the holders of the Rights and all other Persons
and (y) not subject the Board of Directors of the Corporation to any liability to the holders of
the Rights.




(c) From and after such time as any Person becomes an Acquiring Person:



(i) No amendment or other change shall be made in this Agreement or the terms of the Rights
that is inconsistent with the provisions set forth in Section 11(a)(ii) hereof or that would
otherwise adversely affect the interests of the holders of Right Certificates (other than an
Acquiring Person or any Associate or Affiliate of an Acquiring Person). Notwithstanding the
foregoing, a majority of the Board of Directors may, and the Rights Agent shall, if so directed,
amend this Agreement prior to the date on which any Person becomes an Acquiring Person effective
upon the date on which any Person becomes an Acquiring Person.


 


29









 





(ii) The Board of Directors of the Corporation shall not be entitled to exercise the powers
specified in Section 28(b) hereof after the date on which any Person becomes an Acquiring Person
unless the Board of Directors can establish by clear and convincing evidence that its action
satisfies the requirement in Section 28(c)(i) hereof.



(d) To effect any supplement or amendment pursuant to this Section 28, the Corporation shall
deliver to the Rights Agent a copy, certified by the Secretary or any Assistant Secretary of the
Corporation, of the resolution of the Board of Directors of the Corporation adopting such
supplement or amendment. Upon such delivery, the supplement or amendment shall be deemed effective
and shall be administered by the Rights Agent as part of this Agreement in accordance with its
terms.



Section 29. Successors. All the covenants and provisions of this Agreement by or for the benefit of the Corporation or
the Rights Agent shall bind and inure to the benefit of their respective successors and assigns
hereunder.



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



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.



Section 32. Governing Law. This Agreement and each Right Certificate issued hereunder shall be deemed to be a contract
made under the laws of the State of Delaware and for all purposes shall be governed by and
construed in accordance with the laws of such state applicable to contracts to be made and
performed entirely within such state.



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.


 


30









 





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



	 	 	 	 	 	 	 	 	 
	Attest:	 	GTSI CORP.	 	 
	 
	 	 	 	 
	By:

	 	/S/
	 	By:
	 	/S/	 	 
	 

	 	 

Name: Charles DeLeon
	 	 	 	 

Name: Scott Friedlander
	 	 
	 

	 	Title: SVP, Secretary
	 	 	 	Title: President & CEO	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/S/
	 	By:
	 	/S/	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name: Susan Silber
	 	 	 	Name: Herbert J. Lemmer	 	 
	 

	 	Title: Assistant Secretary
	 	 	 	Title: Vice President	 	 







 


A-1












 




CERTIFICATE OF DESIGNATIONS




of




SERIES A JUNIOR PARTICIPATING PREFERRED STOCK




of




GTSI Corp.




(Pursuant to Section 151 of the

Delaware General Corporation Law)




 






GTSI Corp. (the “Corporation”), a corporation organized and existing under the General
Corporation Law of the State of Delaware (the “DGCL”), hereby certifies that the following
resolution was adopted by the Board of Directors of the Corporation as required by Section 151 of
the DGCL at a meeting duly called and held on September 13, 2010:



RESOLVED, that pursuant to the authority vested in the Board of Directors of the Corporation
(the “Board of Directors”) by the Restated Certificate of Incorporation (as amended from
time to time, the “Certificate of Incorporation”) and out of the Preferred Stock authorized
therein, the Board of Directors hereby authorizes that a series of Preferred Stock, par value $0.25
per share, of the Corporation be, and hereby is, created and approved for issuance in accordance
with the Rights Agreement, dated as of September 14, 2010, between the Corporation and American
Stock Transfer & Trust Company, LLC, as rights agent, and that the designation and amount thereof
and the voting powers, preferences and relative, participating, optional and other special rights
of the shares of such series, and the qualifications, limitations or restrictions thereof be, and
hereby are, as follows:



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 the Series A Preferred Stock shall be 20,000. Such number of shares
may be increased or decreased by resolution of the Board of Directors; 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.


 


A-2









 






Section 2. Dividends and Distributions.



(a) Subject to the rights of the holders of any shares of any series of preferred stock, par
value $0.25 per share (the “Preferred Stock”), of the Corporation (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 Common Stock, par value
$0.005 per share (the “Common Stock”), of the Corporation, and of any other junior
stock, shall be entitled to receive, when, as and if declared by the Board of Directors out of
funds legally available for the purpose, quarterly dividends payable in cash on the tenth (10th)
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) $10 or (b) subject to
the provision for adjustment hereinafter set forth, one thousand (1,000) times the aggregate per
share amount of all cash dividends, and one thousand (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. In the
event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in
shares of Common Stock, or 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 to which holders of shares of Series A Preferred Stock were entitled immediately prior to
such event under clause (b) 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.



(b) The Corporation shall declare a dividend or distribution on the Series A Preferred Stock
as provided in paragraph (a) of this Section 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 $10 per share on the Series A Preferred Stock shall
nevertheless be payable on such subsequent Quarterly Dividend Payment Date.



(c) 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, 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 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 not be more than sixty (60) days prior to the date fixed for the payment
thereof.


 


A-3









 





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 one thousand (1,000) votes on all matters
submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at
any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or
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 number of votes per
share to which holders of shares of Series A Preferred Stock were entitled immediately prior to
such event shall be adjusted by multiplying such number 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 herein, in any other Certificate of Designations creating a
series of Preferred Stock or any similar stock, or by law, the holders of shares of Series A
Preferred Stock and the holders of shares of Common Stock and any other capital stock of the
Corporation having general voting rights shall vote together as one (1) class on all matters
submitted to a vote of stockholders of the Corporation.



(c) Except as set forth herein, or as otherwise provided by law, holders of Series A Preferred
Stock shall have no special 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 quarterly dividends or other 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, or make any other distributions, on 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, 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;


 


A-4









 





(iii) redeem or purchase or otherwise acquire for consideration shares of any stock ranking
junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A
Preferred Stock, provided that the Corporation may at any time redeem, purchase or otherwise
acquire shares of any such junior 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



(iv) redeem or purchase or otherwise acquire for consideration any shares of Series A
Preferred Stock, or any shares of stock ranking on a parity with the Series A Preferred Stock,
except in accordance with a purchase offer made in writing or by publication (as determined by the
Board of Directors) to all holders of such shares upon such terms as the Board of Directors, 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 paragraph (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 be retired and cancelled
promptly after the acquisition thereof. All such shares shall upon their cancellation become
authorized but unissued shares of preferred stock and may be reissued as part of a new series of
preferred stock subject to the conditions and restrictions on issuance set forth herein, in the
Certificate of Incorporation, or in any other Certificate of Designations creating a series of
preferred stock or any similar stock or as otherwise required by law.



Section 6. Liquidation, Dissolution or Winding Up. Upon any liquidation, dissolution
or winding up of the Corporation, no distribution shall be made (a) 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 the greater of (i) $1,000 per share, plus an amount equal to accrued and unpaid
dividends and distributions thereon, whether or not declared, to the date of such payment, and (ii)
an aggregate amount per share, subject to the provision for adjustment hereinafter set forth, equal
to one thousand (1,000) times the aggregate amount to be distributed per share to holders of shares
of Common Stock, or (b) to the holders of 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
distributions made ratably on the Series A Preferred Stock and all 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 declare or pay any
dividend on the Common Stock payable in shares of Common Stock, or 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 to which holders of shares
of Series A Preferred Stock were entitled immediately prior to such event under clause (a)(ii) 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.


 


A-5









 





Section 7. Consolidation, Merger, etc. In case the Corporation shall enter into any
consolidation, merger, combination or other transaction in which the 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 into an amount per share, subject to the provision for adjustment hereinafter set forth,
equal to one thousand (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. In the event the Corporation shall at any time declare or pay any
dividend on the Common Stock payable in shares of Common Stock, or 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. No Redemption. The shares of Series A Preferred Stock shall not be
redeemable.



Section 9. Rank. The Series A Preferred Stock shall rank, with respect to the payment
of dividends and the distribution of assets, junior to all series of any other class of the
Corporation’s Preferred Stock.



Section 10. Amendment. The Certificate of Incorporation of the Corporation shall not
be amended in any manner 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 at least two-thirds (2/3rds) of the outstanding shares of Series A Preferred
Stock, voting together as a single class.



Section 11. Board Approval. This Certificate of Designations of the Restated
Certificate of Incorporation of the Corporation was approved by the Board of Directors on September
13, 2010.


 


A-6









 





IN WITNESS WHEREOF, this Certificate of Designations is executed on behalf of the Corporation
by its Chairman and attested by its Secretary this 14th day of September, 2010.



	 	 	 	 	 
	 

	 	/S/
 

	 	 
	 

	 	Name: John Toups	 	 
	 

	 	Title:   Chairman	 	 
	 
	 	 	 	 
	 

	 	/S/
 

	 	 
	 

	 	Name: Charles DeLeon	 	 
	 

	 	Title:   Secretary	 	 







 


A-7











 




Exhibit B




[Form of Right Certificate]




			
	 	 	 
	Certificate No. R-
	 	                     Rights







NOT EXERCISABLE AFTER SEPTEMBER 12, 2011 OR EARLIER IF REDEEMED OR EXCHANGED
IN ACCORDANCE WITH THE AGREEMENT. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT
THE OPTION OF THE COMPANY, AT $0.01 PER RIGHT AND TO EXCHANGE ON THE TERMS
SET FORTH IN THE AGREEMENT. UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE
AGREEMENT, RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN
ACQUIRING PERSON, OR ANY ASSOCIATE OR AFFILIATE THEREOF (AS SUCH TERMS ARE
DEFINED IN THE AGREEMENT), SHALL BECOME NULL AND VOID AND SHALL NO LONGER BE
TRANSFERABLE.



Right Certificate


GTSI Corp.




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 Agreement, dated as of September 14, 2010 (the
“Agreement”), between GTSI Corp., a Delaware corporation (the “Corporation”), and
American Stock Transfer & Trust Company, LLC (the “Rights Agent”), to purchase from the
Corporation at any time after the Distribution Date (as such term is defined in the Agreement) and
prior to 5:00 p.m., New York time, on September 12, 2011 at the stock transfer office of the Rights
Agent, or at the office of its successor as Rights Agent, one one-thousandth (1/1,000th) of a fully
paid non-assessable share of Series A Junior Participating Preferred Stock, par value $0.25 per
share, of the Corporation (the “Preferred Shares”), at a purchase price of $20.00 per one
one-thousandth (1/1,000th) of a Preferred Share (the “Purchase Price”), upon presentation
and surrender of this Right Certificate with the Form of Election to Purchase duly executed. The
number of Rights evidenced by this Right Certificate (and the number of one one-thousandths
(1/1,000ths) of a Preferred Share which may be purchased upon exercise hereof) set forth above, and
the Purchase Price set forth above, are the number and Purchase Price as of September 14, 2010,
based on the Preferred Shares as constituted at such date, and are subject to adjustment as
provided in the Agreement. As provided in the Agreement, the Purchase Price and the number of one
one-thousandths (1/1,000ths) of a Preferred Share 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.



If the Rights evidenced by this Right Certificate are (a) beneficially owned by an Acquiring
Person (or any Associate or Affiliate of such Acquiring Person) or (b) transferred to an Acquiring
Person (or any Associate or Affiliate of such Acquiring Person or to any nominee
of such Acquiring Person, Associate or Affiliate), such Rights shall become null and void and
no holder hereof shall have any right with respect to such Rights.


 


B-1









 





This Right Certificate is subject to all of the terms, provisions and conditions of the
Agreement, as the same may be amended from time to time, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which 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 Corporation and the holders of the Right
Certificates. Copies of the Agreement are on file at the principal executive offices of the
Corporation and the offices of the Rights Agent.



This Right Certificate, with or without other Right Certificates, upon surrender at the stock
transfer office of the Rights Agent, may be exchanged for another Right Certificate or Right
Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like
aggregate number of Preferred Shares as the Rights evidenced by the Right Certificate or Right
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 Right Certificates for the number of whole Rights not exercised.



As provided by, and subject to, the provisions of the Agreement, the Rights evidenced by this
Right Certificate (a) may be redeemed by the Board of Directors of the Corporation at its option at
a redemption price of $0.01 per Right or (b) may be exchanged in whole or in part for Preferred
Shares or shares of the Corporation’s Common Stock, par value $0.005 per share.



No fractional Preferred Shares will be issued upon the exercise of any Right or Rights
evidenced hereby (other than fractions which are integral multiples of one one-thousandth
(1/1,000th) of a Preferred Share, which may, at the election of the Corporation, be evidenced by
depositary receipts), but, in lieu thereof, a cash payment will be made, as provided in the
Agreement.



No holder of this Right Certificate shall be entitled to vote or receive dividends or be
deemed for any purpose the holder of the Preferred Shares or of any other securities of the
Corporation which may at any time be issuable on the exercise hereof, nor shall anything contained
in the Agreement or herein be construed to confer upon the holder hereof, as such, any of the
rights of a stockholder of the Corporation 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 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 Agreement.



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



******



 


B-2









 





WITNESS the facsimile signature of the proper officers of the Corporation and its corporate
seal.



Dated as of                     .



	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	GTSI Corp.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	Name:
	 

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

	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 







 


B-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 Corporation, with full power of substitution.



	 	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

Signature
	 	 






Signature Guaranteed:



Signatures must be guaranteed by an eligible guarantor institution (a bank, stockbroker,
savings and loan association or credit union with membership in an approved signature guarantee
medallion program) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934.




 





The undersigned hereby certifies that (a) neither this Right Certificate nor any Rights
evidenced hereby are being sold, assigned and transferred by or on behalf of a Person who is or was
an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such terms are defined
in the Rights Agreement) and (b) after due inquiry and to the best knowledge of the undersigned,
the undersigned did not acquire any of the Rights evidenced by this Right Certificate from any
Person who is or was an Acquiring Person or an Affiliate or Associate of an Acquiring Person.



	 	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

Signature
	 	 





 




 


B-4









 





[Form of Reverse Side of Right Certificate — continued]




FORM OF ELECTION TO PURCHASE




(To be executed by the registered holder if such holder

desires to exercise the Rights represented by the Right Certificate.)




To: GTSI Corp.



The undersigned hereby irrevocably elects to exercise
 _____ 
Rights represented by this
Right Certificate to purchase the Preferred Shares issuable upon the exercise of such Rights and
requests that certificates for such Preferred Shares be issued in the name of:



Please insert social security

or other identifying number



 




(Please print name and address)




 





If such number of Rights shall not be all the Rights evidenced by this Right Certificate, a new
Right Certificate for the balance remaining of such Rights shall be registered in the name of and
delivered to:



Please insert social security

or other identifying number



 





(Please print name and address)




 





	 	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

Signature
	 	 






Signature Guaranteed:



Signatures must be guaranteed by an eligible guarantor institution (a bank, stockbroker,
savings and loan association or credit union with membership in an approved signature guarantee
medallion program) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934.



 



 


B-5









 





The undersigned hereby certifies that (a) the Rights evidenced by this Right Certificate are
not being exercised by or on behalf of a Person who is or was an Acquiring Person or an Affiliate
or Associate of an Acquiring Person (as such terms are defined in the Rights Agreement) and (b) after due inquiry and to the best knowledge of the undersigned, the
undersigned did not acquire the Rights evidenced by this Rights Certificate from any Person who is
or was an Acquiring Person or an Affiliate or Associate of an Acquiring Person.



	 	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

Signature
	 	 




 



NOTICE




The signature in the Form of Assignment or Form of Election to Purchase, as the case may be,
must conform to the name as written upon the face of this Right Certificate in every particular,
without alteration or enlargement or any change whatsoever.



In the event the certification set forth above in the Form of Assignment or the Form of
Election to Purchase, as the case may be, is not completed and signed, the Corporation and the
Rights Agent will deem the beneficial owner of the Rights evidenced by this Right Certificate to be
an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement) and
such Assignment or Election to Purchase will not be honored.



 


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Exhibit C




UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE AGREEMENT (AS DEFINED BELOW), RIGHTS OWNED BY OR
TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING PERSON (AS DEFINED IN THE AGREEMENT), OR
ANY ASSOCIATE OR AFFILIATE THEREOF (AS SUCH TERMS ARE DEFINED IN THE AGREEMENT), SHALL BECOME NULL
AND VOID AND SHALL NO LONGER BE TRANSFERABLE.



SUMMARY OF RIGHTS TO PURCHASE

PREFERRED SHARES




Introduction




On September 13, 2010, the Board of Directors of GTSI Corp. (the “Corporation”)
declared a dividend of one (1) preferred share purchase right (a “Right”) for each
outstanding share of common stock, par value $0.005 per share, of the Corporation (the “Common
Shares”). The dividend is payable on September 24, 2010 (the “Record Date”) to the
stockholders of record on that date. The description and terms of the Rights are set forth in a
rights agreement (the “Agreement”) between the Corporation and American Stock Transfer &
Trust Company, LLC, as rights agent (the “Rights Agent”).



Purchase Price




Each Right entitles the registered holder to purchase from the Corporation one one-thousandth
(1/1,000th) of a share of Series A Junior Participating Preferred Stock, par value $0.25 per share,
of the Corporation (the “Preferred Shares”), at a price of $20.00 per one one-thousandth
(1/1,000th) of a Preferred Share (the “Purchase Price”), subject to adjustment.



Flip-In




In the event that any person or group of affiliated or associated persons acquires beneficial
ownership of twenty percent (20%) or more of the outstanding Common Shares (an “Acquiring
Person”), each holder of a Right, other than Rights beneficially owned by the Acquiring Person
(which will thereafter be void), will thereafter have the right to receive upon exercise of each
Right that number of Common Shares (or, under certain circumstances, other equivalently valued
securities or other assets) having a market value of two (2) times the exercise price of the Right.



Flip-Over




If the Corporation is acquired in a merger or other business combination transaction or fifty
percent (50%) or more of its consolidated assets or earning power are sold after a person or group
becomes an Acquiring Person, each holder of a Right (other than Rights beneficially owned by the
Acquiring Person, which will be void) will thereafter have the right to receive for each Right that
number of shares of common stock of the acquiring company which at the time of such transaction
will have a market value of two (2) times the exercise price of the Right.


 


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Distribution Date





The “Distribution Date” of the Rights is the earlier of:



(i) Ten (10) days following a public announcement that a person or group of affiliated or
associated persons have acquired beneficial ownership of twenty percent (20%) or more of the
outstanding Common Shares; or



(ii) Ten (10) business days (or such later date as may be determined by action of the Board of
Directors of the Corporation prior to such time as any person or group of affiliated persons
becomes an Acquiring Person) following the commencement of a tender offer or exchange offer the
consummation of which would result in the beneficial ownership by a person or group of twenty
percent (20%) or more of the outstanding Common Shares.



Transfer and Detachment




Until the Distribution Date (or earlier redemption, exchange, termination or expiration of the
Rights), the Rights will be evidenced, with respect to any of the Common Share certificates
outstanding as of the Record Date, by such Common Share certificate with a copy of this Summary of
Rights attached thereto. Until the Distribution Date (or earlier redemption, exchange, termination
or expiration of the Rights), the Rights will be transferred with and only with the Common Shares,
and transfer of those certificates will also constitute transfer of these Rights. Until the
Distribution Date (or earlier redemption, exchange, termination or expiration of the Rights), new
Common Share certificates issued after the Record Date upon transfer or new issuance of Common
Shares will contain a notation incorporating the Rights Agreement by reference. Until the
Distribution Date (or earlier redemption, exchange, termination or expiration of the Rights), the
surrender for transfer of any certificates for Common Shares outstanding as of the Record Date,
even without such notation or a copy of this Summary of Rights being surrendered therewith, will
also constitute the transfer of the Rights associated with the Common Shares represented by such
certificate.



As soon as practicable following the Distribution Date, separate certificates evidencing the
Rights (“Right Certificates”) will be mailed to holders of record of the Common Shares as
of the close of business on the Distribution Date and such separate Right Certificates alone will
thereafter evidence the Rights.



Exercisability




The Rights are not exercisable until the Distribution Date. The Rights will expire on
September 12, 2011 unless that date is extended or unless the Rights are earlier redeemed or
exchanged by the Corporation, in each case, as described below.


 


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Adjustments




The Purchase Price payable, and the number of Preferred Shares or other securities or property
issuable, upon exercise of the Rights are subject to adjustment from time to time to prevent
dilution in the event of stock dividends, stock splits, reclassifications or certain distributions
with respect to the Preferred Shares. The number of outstanding Rights and the
number of one one-thousandths (1/1,000ths) of a Preferred Share issuable upon exercise of each
Right are also subject to adjustment if, prior to the Distribution Date, there is a stock split of
the Common Shares or a stock dividend on the Common Shares payable in Common Shares or
subdivisions, consolidations or combinations of the Common Shares. With certain exceptions, no
adjustment in the Purchase Price will be required until cumulative adjustments require an
adjustment of at least one percent (1%) in such Purchase Price. No fractional Preferred Shares
will be issued (other than fractions which are integral multiples of one one-thousandth (1/1,000th)
of a Preferred Share, which may, at the election of the Corporation, be evidenced by depositary
receipts) and, in lieu thereof, an adjustment in cash will be made based on the market price of the
Preferred Shares on the last trading day prior to the date of exercise.



Preferred Shares




Preferred Shares purchasable upon exercise of the Rights will not be redeemable. Each
Preferred Share will be entitled to receive a minimum preferential quarterly dividend payment in an
amount per share equal to the greater of (i) $10 and (ii) one thousand (1,000) times the dividend
declared per Common Share. In the event of liquidation, the holders of the Preferred Shares will
be entitled to receive a preferential liquidation payment in an amount per share equal to the
greater of (i) $1,000 (plus accrued dividends) and (ii) one thousand (1,000) times the payment made
per Common Share. Each Preferred Share will have one thousand (1,000) votes, voting together with
the Common Shares. Finally, in the event of any merger, consolidation or other transaction in
which Common Shares are exchanged for or changed into other stock or securities, cash and/or other
property, the holder of a Preferred Share will be entitled to receive one thousand (1,000) times
the amount received by the holder of a Common Share. These rights are protected against dilution
in the event additional Common Shares are issued.



The value of the one one-thousandth (1/1,000th) interest in a Preferred Share purchasable upon
exercise of each Right should, because of the nature of the Preferred Shares’ dividend, liquidation
and voting rights, approximate the value of one (1) Common Share.



Exchange




At any time after any person or group becomes an Acquiring Person, and prior to the
acquisition by such person or group of fifty percent (50%) or more of the outstanding Common
Shares, the Board of Directors of the Corporation may exchange the Rights (other than Rights owned
by the Acquiring Person, which will have become void), in whole or in part, at an exchange ratio of
one (1) Common Share per Right (subject to adjustment).



Redemption




At any time prior to any person or group becoming an Acquiring Person, the Board of Directors
of the Corporation may redeem the Rights in whole, but not in part, at a price of $0.01 per Right
(the “Redemption Price”), subject to adjustment. The Redemption Price will be payable in
cash, Common Shares (including fractional shares) or any other form of consideration deemed
appropriate by the Board of Directors. The redemption of the Rights may be made effective at such
time on such basis with such conditions as the Board of Directors in its
sole discretion may establish. Immediately upon any redemption of the Rights, the right to
exercise the Rights will terminate and the only right of the holders of Rights will be to receive
the Redemption Price.


 


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Amendments




The terms of the Rights may be amended by the Board of Directors of the Corporation without
the consent of the holders of the Rights, except that from and after such time as any person or
group of affiliated or associated persons becomes an Acquiring Person no such amendment may
adversely affect the interests of the holders of the Rights (other than the Acquiring Person or an
affiliate or associate thereof).



Rights and Holders




Until a Right is exercised, the holder thereof, as such, will have no rights as a stockholder
of the Corporation, including, without limitation, the right to vote or to receive dividends.



Anti-Takeover Effect




The Rights have certain anti-takeover effects. The Rights may cause substantial dilution to a
person or group that attempts to acquire the Corporation on terms not approved by the Board of
Directors, except pursuant to an offer conditioned on a substantial number of Rights being
acquired. The Rights should not interfere with any merger or other business combination approved
by the Board of Directors prior to the occurrence of a person or group becoming an Acquiring
Person, because until such time the Rights may generally be redeemed by the Corporation at $0.01
per Right.



Further Information




A copy of the Agreement has been filed with the Securities and Exchange Commission as an
Exhibit to a Registration Statement on Form 8-A dated September 14, 2010. A copy of the Agreement
is available free of charge from the Corporation. This summary description of the Rights does not
purport to be complete and is qualified in its entirety by reference to the Agreement, which is
hereby incorporated herein by reference.




 


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