Exhibit 4.1





Exhibit 4.1




Execution Copy




TAX BENEFITS PRESERVATION PLAN




dated as of




November 19, 2010




between




FIDELITY SOUTHERN CORPORATION




and




MELLON INVESTOR SERVICES LLC




as Rights Agent



 


 









 







TABLE OF CONTENTS




	 	 	 	 	 
	SECTION 1. DEFINITIONS
	 	 	1	 
	SECTION 2. OTHER DEFINITIONAL AND INTERPRETATIVE PROVISIONS
	 	 	6	 
	SECTION 3. ISSUANCE OF RIGHTS AND RIGHT CERTIFICATES
	 	 	7	 
	SECTION 4. FORM OF RIGHT CERTIFICATES
	 	 	9	 
	SECTION 5. REGISTRATION; TRANSFER AND EXCHANGE OF RIGHT CERTIFICATES; MUTILATED, DESTROYED, LOST OR STOLEN RIGHT CERTIFICATES
	 	 	9	 
	SECTION 6. EXERCISE OF RIGHTS
	 	 	10	 
	SECTION 7. CANCELLATION AND DESTRUCTION OF RIGHT CERTIFICATES
	 	 	12	 
	SECTION 8. RESERVATION AND AVAILABILITY OF CAPITAL STOCK
	 	 	13	 
	SECTION 9. ADJUSTMENT OF PURCHASE PRICE, NUMBER AND KIND OF SHARES OR NUMBER OF RIGHTS
	 	 	14	 
	SECTION 10. CERTIFICATE OF ADJUSTED PURCHASE PRICE OR NUMBER OF SHARES
	 	 	17	 
	SECTION 11. FRACTIONAL RIGHTS AND FRACTIONAL SHARES
	 	 	17	 
	SECTION 12. CERTAIN LEGAL AND REGULATORY MATTERS
	 	 	18	 
	SECTION 13. AGREEMENT OF RIGHT HOLDERS
	 	 	18	 
	SECTION 14. RIGHT CERTIFICATE HOLDER NOT DEEMED A SHAREHOLDER
	 	 	19	 
	SECTION 15. APPOINTMENT OF RIGHTS AGENT
	 	 	19	 
	SECTION 16. MERGER OR CONSOLIDATION OR CHANGE OF NAME OF RIGHTS AGENT
	 	 	20	 
	SECTION 17. DUTIES OF THE RIGHTS AGENT
	 	 	21	 
	SECTION 18. CHANGE OF RIGHTS AGENT
	 	 	24	 
	SECTION 19. REDEMPTION
	 	 	24	 
	SECTION 20. EXCHANGE
	 	 	25	 
	SECTION 21. NOTICE OF PROPOSED ACTIONS AND CERTAIN OTHER MATTERS
	 	 	26	 
	SECTION 22. NOTICES
	 	 	27	 
	SECTION 23. SUPPLEMENTS AND AMENDMENTS
	 	 	28	 
	SECTION 24. SUCCESSORS
	 	 	28	 
	SECTION 25. DETERMINATIONS AND ACTIONS BY THE BOARD, ETC
	 	 	28	 
	SECTION 26. BENEFITS OF THIS RIGHTS PLAN
	 	 	29	 
	SECTION 27. SEVERABILITY
	 	 	29	 
	SECTION 28. GOVERNING LAW
	 	 	29	 
	SECTION 29. COUNTERPARTS; EFFECTIVENESS
	 	 	29	 
	SECTION 30. DESCRIPTIVE HEADING
	 	 	29	 
	SECTION 31. FORCE MAJEURE
	 	 	30	 
	SECTION 32. MISCELLANEOUS
	 	 	30	 






 


 









 







TAX BENEFITS PRESERVATION PLAN




THIS TAX BENEFITS PRESERVATION PLAN (this “Rights Plan”) dated as of November 19, 2010,
between Fidelity Southern Corporation, a Georgia corporation (the “Company”), and Mellon Investor
Services LLC, a New Jersey limited liability company, as Rights Agent (the “Rights Agent”).



WITNESSETH




WHEREAS, (a) the Company and certain Subsidiaries (as defined below) have generated certain
Tax Benefits (as defined below) for U.S. federal income tax purposes, (b) the Company desires to
avoid certain types of owner shifts that could cause an “ownership change” within the meaning of
Section 382 (as defined below), and thereby preserve the Company’s ability to utilize such Tax
Benefits and (c) in furtherance of such objective, the Company desires to enter into this Rights
Plan;



WHEREAS, on November 18, 2010, the Board of Directors of the Company authorized and declared a
dividend of one preferred stock purchase right (a “Right”) for each share of Common Stock (as
defined below) outstanding at the close of business (as defined below) on December 6, 2010 (the
“Record Date”) and authorized the issuance, upon the terms and subject to the conditions herein, of
one Right (subject to adjustment) in respect of each share of Common Stock issued after the Record
Date; each Right representing the right to purchase, upon the terms and subject to the conditions
herein, one one-millionth (subject to adjustment) of a share of Preferred Stock (as defined below);




NOW, THEREFORE, the parties hereto agree as follows:




SECTION 1. Definitions. The following terms, as used herein, have the following meanings:




(a) “Acquiring Person” means any Threshold Holder except:




(i) the U.S. Government;




(ii) any Exempt Person;




(iii) any Existing Holder unless (A) in the case of a Person who has been an Existing
Holder at least three (3) years, such Existing Holder’s Percentage Stock Ownership increases
from its lowest point on or after the Record Date, other than any increase pursuant to or as
a result of (1) a stock dividend, stock split, reverse stock split or similar transaction
effected by the Company, (2) any anti-dilution or similar adjustment in accordance with the
terms of any Company Securities or (3) any redemption or repurchase of Company Securities by
the Company, or (B) in the case of any other Existing Holder, such Existing Holder’s number
of shares of Company Securities increases on or after the Record Date, other than any
increase pursuant to or as a result of (1) a stock dividend, stock split, reverse stock
split or similar transaction effected by the Company or (2) any anti-dilution or similar
adjustment in accordance with the terms of any Company Securities.


 


 









 






(iv) any Person that would qualify as a Threshold Holder as a result of a redemption of
Company Securities by the Company, unless and until such Person’s Percentage Stock Ownership
increases on or after the date of such redemption, other than any increase pursuant to or as
a result of (A) a stock dividend, stock split, reverse stock split or similar transaction
effected by the Company, (B) any anti-dilution or similar adjustment in accordance with the
terms of any Company Securities or (C) any redemption or repurchase of Company Securities by
the Company;




(v) any Person that the Board determines, in its sole discretion, has inadvertently
become a Threshold Holder, so long as such Person (or its Associate) promptly enters into,
and delivers to the Company, an irrevocable commitment promptly to divest and thereafter
promptly divests (without exercising or retaining any power, including voting, with respect
to such securities), sufficient Company Securities so that such Person is no longer a
Threshold Holder;




(vi) any Person that has become a Threshold Holder or after becoming a Threshold Holder
has increased such Person’s Percentage Stock Ownership if the Board in good faith determines
that the attainment of such status or increase in Percentage Stock Ownership has not
jeopardized or endangered, and likely will not jeopardize or endanger, the Company’s
utilization of the Tax Benefits; provided that such Person’s Percentage Stock Ownership does
not further increase following such determination by the Board, other than any increase
pursuant to or as a result of (A) a stock dividend, stock split, reverse stock split or
similar transaction effected by the Company, (B) any anti-dilution or similar adjustment in
accordance with the terms of any Company Securities or (C) any redemption or repurchase of
Company Securities by the Company;




(vii) any Person that Beneficially Owns at least a majority of the Common Stock
following consummation of a Qualified Offer; and




(viii) any Strategic Investor unless such Strategic Investor’s Percentage Stock
Ownership increases on or after the Record Date, other than any increase pursuant to or as a
result of (A) a stock dividend, stock split, reverse stock split or similar transaction
effected by the Company, (B) any anti-dilution or similar adjustment in accordance with the
terms of any Company Securities, (C) any redemption or repurchase of Company Securities by
the Company, or (D) the terms of an agreement between the Company and such Strategic
Investor that was approved by the Board as described under the definition of “Strategic
Investor”.



(b) “Associate” means, with respect to any Person, any other Person whose Company Securities
are aggregated with the securities actually or constructively owned by the first Person pursuant to
Section 382 of the Code and the Treasury Regulations promulgated thereunder.


 


2









 





(c) A Person or group of Persons shall be deemed the “Beneficial Owner” of, and shall be
deemed to “Beneficially Own,” and shall have “Beneficial Ownership” of, any Company Securities or
any Rights, as applicable; (i) which such Person directly owns or (ii) which such Person would be
deemed to own constructively pursuant to Section 382 of the
Code and the Treasury Regulations promulgated thereunder (including as a result of the deemed
exercise of an “option” pursuant to Treasury Regulation Section 1.382-4(d) and including, without
duplication, Company Securities or Rights, as applicable, owned by any Associate of such Person);
provided that a Person shall not be treated as “Beneficially Owning” Company Securities pursuant to
clause (i) above to the extent that such Person (1) does not have the right to receive or the power
to direct the receipt of dividends from, or the proceeds from the sale of, such Company Securities
and (2) properly completes and timely files a Schedule 13D or Schedule 13G under the Exchange Act
(or any similar or successor report), indicating that it does not have such right or power.



(d) “Board” means the Board of Directors of the Company. Any approval, determination or other
action to be taken by the Board hereunder may be taken by a duly authorized committee of the Board
and any such approval, determination or other action taken by any such committee will be considered
the approval, determination or action of the Board for purposes hereof.



(e) “Business Day” means any day other than a Saturday, Sunday or a day on which banking
institutions in the States of New York, Georgia or New Jersey are authorized or obligated by law or
executive order to close.



(f) “Close of business” on any given date means 5:00 p.m., Atlanta, Georgia time, on such
date; provided that if such date is not a Business Day “close of business” means 5:00 p.m.,
Atlanta, Georgia time, on the next succeeding Business Day.



(g) “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any
successor statute.




(h) “Common Stock” means the common stock, no par value, of the Company.



(i) “Company Securities” means (i) shares of Common Stock, (ii) shares of preferred stock
(other than Straight Preferred Stock) of the Company and (iii) any other interest that would be
treated as “stock” of the Company pursuant to Treasury Regulation Section 1.382-2T(f)(18).



(j) “Distribution Date” means the earlier of (i) the close of business on the tenth Business
Day after a Stock Acquisition Date and (ii) the close of business on the tenth Business Day (or
such later day as may be designated prior to a Stock Acquisition Date by the Board) after the date
of the commencement of a tender or exchange offer by any Person if, upon consummation thereof, such
Person would or could be an Acquiring Person; provided, however, that if either of such dates
occurs after the date of this Rights Plan and on or prior to the Record Date, then the Distribution
Date shall be the Record Date.



(k) “Exchange Act” means the Securities Exchange Act of 1934, as amended, unless otherwise
expressly specified.


 


3









 





(l) “Exempt Person” means the Company, any Subsidiary (in each case including, without
limitation, in any fiduciary capacity), any employee benefit plan or
compensation arrangement of the Company or any Subsidiary, or any entity or trustee holding
Company Securities to the extent organized, appointed or established by the Company or any
Subsidiary for or pursuant to the terms of any such employee benefit plan or compensation
arrangement.



(m) “Existing Holder” means any Beneficial Owner of 5% or more of the Common Stock immediately
prior to the date of this Rights Plan.



(n) “Expiration Date” means the earliest of (i) the Final Expiration Date, (ii) the time at
which all Rights are redeemed as provided in Section 19 or exchanged as provided in Section 20,
(iii) the first day of a taxable year of the Company to which the Board determines that no Tax
Benefits may be carried forward and (iv) a date prior to a Stock Acquisition Date on which the
Board determines, in its sole discretion, that the Rights and the Rights Plan are no longer in the
best interests of the Company and its shareholders.



(o) “Final Expiration Date” means the date that is thirty-six (36) months and one day after
the date hereof; provided that if a Stock Acquisition Date occurs fewer than thirty (30) days prior
to such date, then the Final Expiration Date shall be the date that is thirty (30) days after the
Stock Acquisition Date.



(p) “Percentage Stock Ownership” means the percentage stock ownership interest of the Company
by reason of Beneficially Owning any Company Securities, as determined in accordance with Treasury
Regulation Sections 1.382-2(a)(3), 1.382-2T(g), (h), (j) and (k).



(q) “Person” means any individual, firm, corporation, joint venture, partnership, trust
association, limited liability company, limited liability partnership, governmental entity,
unincorporated organizations or other entity, or any group of Persons making a “coordinated
acquisition” of shares or otherwise treated as an entity within the meaning of Treasury
Regulation Section 1.382-3(a)(1)(i) and shall include any successor (by merger or otherwise) of any
such entity.



(r) “Preferred Stock” means the Series B Participating Cumulative Preferred Stock, no par
value, of the Company, having the terms set forth in the form of the articles of amendment attached
hereto as Exhibit A.



(s) “Purchase Price” means the price (subject to adjustment as provided herein) at which a
holder of a Right may purchase one one-millionth of a share of Preferred Stock (subject to
adjustment as provided herein) upon exercise of a Right, which price shall initially be $30.00.



(t) “Qualified Offer” shall mean an offer determined by a majority of the Board to have each
of the following characteristics with respect to the Common Stock:




(i) a tender or exchange offer for all of the outstanding shares of Common Stock at the
same per-share consideration;


 


4









 






(ii) an offer that has commenced within the meaning of Rule 14d-2(a) under the Exchange
Act;




(iii) an offer that is conditioned on a minimum of at least a majority of the
outstanding shares of the Common Stock being tendered and not withdrawn as of the offer’s
expiration date, which condition shall not be waivable;




(iv) an offer pursuant to which the Person making such offer has announced that it
intends, as promptly as practicable upon successful completion of the offer, to consummate a
second step transaction whereby all shares of the Common Stock not tendered into the offer
will be acquired for the same form and amount of consideration per share actually paid
pursuant to the offer, subject to shareholders’ statutory appraisal rights, if any.




(u) “Section 382” means Section 382 of the Code, or any comparable successor provision.



(v) “Securities Act” means the Securities Act of 1933, as amended, unless otherwise expressly
specified.



(w) “Stock Acquisition Date” means the date of the first public announcement (including the
filing of a report on Schedule 13D or Schedule 13G under the Exchange Act (or any similar or
successor report)) by the Company or an Acquiring Person (or an Associate thereof) indicating that
an Acquiring Person has become such.



(x) “Straight Preferred Stock” means preferred stock that is not treated as stock pursuant to
Treasury Regulation Section 1.382-2(a)(3). For the avoidance of doubt, the Series A Preferred Stock
of the Company shall be treated as “Straight Preferred Stock” for purposes of this Rights Plan.



(y) “Strategic Investor” means any Beneficial Owner of Company Securities that is designated
as a Strategic Investor (which designation must include a specific reference to this Rights Plan
and this definition) in an agreement between the Company and such Strategic Investor that is
approved by the Board in connection with an acquisition of Beneficial Ownership of Company
Securities by such Beneficial Owner, it being understood that such agreement may include such
restrictions and conditions, if any, as the Board may approve.



(z) “Subsidiary” means any other Person of which securities or other ownership interests
having ordinary voting power, in the absence of contingencies, to elect a majority of the board of
directors or other Persons performing similar functions are at the time directly or indirectly
owned by the Company.



(aa) “Tax Benefits” means the net operating loss carryovers, capital loss carryovers, general
business credit carryovers, alternative minimum tax credit carryovers and foreign tax credit
carryovers, as well as any loss or deduction attributable to a “net unrealized built-in loss”
within the meaning of Section 382, of the Company or any Subsidiary.


 


5









 





(bb) “Threshold Holder” means (i) any Beneficial Owner of 5% or more of the Common Stock then
outstanding and (ii) any Person or group of Persons that is or becomes a “5-percent shareholder” of
the Company described in Treasury Regulation Section 1.382-2T(g)(1)(i) or (ii).



(cc) “Trading Day” means a day on which the principal national securities exchange or
over-the-counter market on which the shares of Common Stock are listed or admitted to trading is
open for the transaction of business or, if the shares of Common Stock are not listed or admitted
to trading on any national securities exchange or over-the-counter market, a Business Day.



(dd) “Treasury Regulation” means any final, proposed or temporary regulation of the Department
of Treasury under the Code and any successor regulation.



(ee) “U.S. Government” means any of (i) the federal government of the United States of
America, (ii) any instrumentality or agency of the federal government of the United States of
America and (iii) any Person wholly-owned by, or the sole beneficiary of which is, the federal
government of the United States of America or any instrumentality or agency thereof.



SECTION 2. Other Definitional and Interpretative Provisions. The words “hereof”, “herein” and
“hereunder” and words of like import used in this Rights Plan shall refer to this Rights Plan as a
whole and not to any particular provision of this Rights Plan. The captions herein are included for
convenience of reference only and shall be ignored in the construction or interpretation hereof.
References to Articles, Sections, Exhibits and Schedules are to Articles, Sections, Exhibits and
Schedules of this Rights Plan unless otherwise specified. All Exhibits and Schedules annexed hereto
or referred to herein are hereby incorporated in and made a part of this Rights Plan as if set
forth in full herein. Any capitalized terms used in any Exhibit or Schedule but not otherwise
defined therein, shall have the meaning as defined in this Rights Plan. Any singular term in this
Rights Plan shall be deemed to include the plural, and any plural term the singular. Whenever the
words “include”, “includes” or “including” are used in this Rights Plan, they shall be deemed to be
followed by the words “without limitation”, whether or not they are in fact followed by those words
or words of like import. “Writing”, “written” and comparable terms refer to printing, typing and
other means of reproducing words (including electronic media) in a visible form. References to any
agreement or contract are to that agreement or contract as amended, modified or supplemented from
time to time in accordance with the terms hereof and thereof; provided that with respect to any
agreement or contract listed on any schedules hereto, all such amendments, modifications or
supplements must also be listed in the appropriate schedule. References to any Person include the
successors and permitted assigns of that Person. References from or through any date mean, unless
otherwise specified, from and including or through and including, respectively. References to any
statute, rules or regulations shall be deemed to refer to such statute, rules or regulations as
amended from time to time and to any successors thereto.


 


6









 






SECTION 3. Issuance of Rights and Right Certificates.



(a) As soon as practicable after the Record Date, the Company will send a summary of the
Rights substantially in the form of Exhibit B hereto, by first class mail, postage
prepaid, to each record holder of Common Stock as of the close of business on the Record Date.
Certificates for the Common Stock issued after the Record Date but prior to the earlier of a
Distribution Date or the Expiration Date shall have printed or written on or otherwise affixed to
them a legend in substantially the following form:




This certificate also evidences certain Rights as set forth in a Tax Benefits
Preservation Plan between Fidelity Southern Corporation (the “Company”) and Mellon
Investor Services LLC, as Rights Agent, dated as of November 19, 2010, and as
amended from time to time (the “Rights Plan”), the terms of which are hereby
incorporated herein by reference and a copy of which is on file at the principal
executive offices of the Company. The Company will mail to the holder of this
certificate a copy of the Rights Plan without charge promptly after receipt of a
written request therefor. Under certain circumstances, as set forth in the Rights
Plan, such Rights may be evidenced by separate certificates instead of by this
certificate and may be redeemed or exchanged or may expire. As set forth in the
Rights Plan, Rights issued or transferred to, or Beneficially Owned by, any Person
who is, was or becomes an Acquiring Person (as such terms are defined in the Rights
Plan), whether currently Beneficially Owned by or on behalf of such Person or by any
subsequent holder, may be null and void. Rights are also subject to additional
restrictions on transfer as set forth in the Rights Plan.



In addition, the confirmation and account statements sent to holders of shares of Common Stock in
book-entry form (which shares of Common Stock shall also be deemed to represent Rights
Certificates) shall have printed or written on or otherwise affixed to them a legend in
substantially the following form:




Each share of Common Stock, no par value, of Fidelity Southern Corporation, a
Georgia corporation (the “Company”), evidences certain Rights as set forth in a Tax
Benefits Preservation Plan between the Company and Mellon Investor Services LLC, as
Rights Agent, dated as of November 19, 2010, and as amended from time to time (the
“Rights Plan”), the terms of which are hereby incorporated herein by reference and a
copy of which is on file at the principal executive offices of the Company. The
Company will mail to the holder of shares to which this statement relates a copy of
the Rights Plan without charge promptly after receipt of a written request therefor.
Under certain circumstances, as set forth in the Rights Plan, such Rights may be
evidenced by separate certificates instead of by the shares to which this statement
relates and may be redeemed or exchanged or may expire. As set forth in the Rights
Plan, Rights issued or transferred to, or Beneficially Owned by, any Person who is,
was or becomes an Acquiring Person (as such terms are defined in the Rights Plan),
whether currently Beneficially Owned by or on behalf of such Person or by any
subsequent holder, may be null and void. Rights are also subject to additional
restrictions on transfer as set forth in the Rights Plan.


 


7









 





(b) Prior to a Distribution Date, (i) the Rights will be attached to the shares of Common
Stock underlying the balances indicated in the book-entry account system of the transfer agent for
the Common Stock or, in the case of certificated shares, all Common Stock
certificates representing shares then outstanding and will not be evidenced by separate Right
Certificates (as hereinafter defined) and the registered holders of the Common Stock shall be
deemed to be the registered holders of the associated Rights, and (ii) the Rights will be
transferable only in connection with the transfer of the underlying Common Stock.



(c) From and after a Distribution Date, the Rights will be evidenced solely by separate Right
Certificates and will be transferable only in connection with the transfer of the Right
Certificates pursuant to Section 5. As soon as practicable after the Company has notified the
Rights Agent in writing of the occurrence of a Distribution Date, the Company will prepare and
execute, the Rights Agent will countersign and the Rights Agent, if requested and provided with all
necessary information and documents, will send, by first class, insured, postage prepaid mail, to
each record holder of Common Stock (at the address of such holder shown on the records of the
transfer agent or registrar for the Common Stock) as of the close of business on the Distribution
Date (other than any Acquiring Person or any Associate thereof), one or more Right Certificates
evidencing in the case of Common Stock, one Right (subject to adjustment as provided herein) for
each share of Common Stock so held. Until such written notice is received by the Rights Agent, the
Rights Agent may presume conclusively for all purposes that a Distribution Date has not occurred.
If an adjustment in the number of Rights per share of Common Stock has been made pursuant to
Section 9, the Company shall, at the time of distribution of the Right Certificates, make the
necessary and appropriate rounding adjustments in accordance with Section 11(a) so that Right
Certificates representing only whole numbers of Rights are distributed and cash is paid in lieu of
any fractional Rights, and provide the Rights Agent with a written certificate describing such
adjustments and showing any calculations. The Company shall promptly notify the Rights Agent in
writing upon the occurrence of the Distribution Date and, if such notification is given orally, the
Company shall confirm the same in writing on or prior to the Business Day next following. Until
such notice has been received by the Rights Agent, the Rights Agent may presume conclusively for
all purposes that the Distribution Date has not occurred.



(d) Rights shall be issued in respect of all shares of Common Stock outstanding as of the
Record Date or issued (on original issuance or out of treasury) after the Record Date but prior to
the earlier of a Distribution Date and the Expiration Date. In addition, in connection with the
issuance or sale of shares of Common Stock following a Distribution Date and prior to the
Expiration Date, the Company may, with respect to shares of Common Stock so issued or sold (i)
pursuant to the exercise of stock options or under any employee plan or arrangement or (ii) upon
the exercise, conversion, settlement or exchange of other securities issued by the Company prior to
the Distribution Date, and (iii) in any other case, if deemed appropriate by the Board, issue Right
Certificates representing the appropriate number of Rights in connection with such issuance or
sale; provided that no such Right Certificate shall be issued if, and to the extent that,
appropriate adjustment shall otherwise be made in lieu of the issuance thereof.


 


8









 






SECTION 4. Form of Right Certificates.



(a) The certificates evidencing the Rights (and the forms of assignment, election to purchase
and certificates to be printed on the reverse thereof) (the “Right Certificates”) shall each be
substantially in the form of Exhibit C hereto and may have such
marks of identification or designation and such legends, summaries or endorsements printed
thereon as the Company may deem appropriate (but which do not affect the rights, duties,
liabilities or responsibilities of the Rights Agent) and as are not inconsistent with the
provisions of this Rights Plan, or as may be required to comply with any applicable law, rule or
regulation or with any rule or regulation of any stock exchange on which the Rights may from time
to time be listed, or to conform to usage. Subject to the terms and conditions hereof, the Right
Certificates, whenever distributed, shall be dated as of the Record Date.



(b) The Right Certificates shall be executed on behalf of the Company by its Chief Executive
Officer, its Chairman of the Board, Chief Operating Officer or any Executive Vice President, either
manually or by facsimile signature, and shall have affixed thereto the Company’s seal or a
facsimile thereof which shall be attested by the Secretary or any Assistant Secretary of the
Company, either manually or by facsimile signature. The Right Certificates shall be countersigned,
either manually or by facsimile signature, by the Rights Agent and shall not be valid for any
purpose unless so countersigned. In case any officer of the Company whose manual or facsimile
signature is affixed to any of the Right Certificates ceases to be such officer of the Company
before countersignature by the Rights Agent and issuance and delivery by the Company, such Right
Certificates may, nevertheless, be countersigned by the Rights Agent and issued and delivered with
the same force and effect as though the Person who signed such Right Certificates had not ceased to
be such officer of the Company. Any Right Certificate may be signed on behalf of the Company by any
Person who, at the actual date of the execution of such Right Certificate, shall be a proper
officer of the Company to sign such Right Certificate, although at the date of the execution of
this Rights Plan any such Person was not such an officer.



(c) Notwithstanding any of the provisions of this Rights Plan or of the Rights to the
contrary, the Company may, at its option, issue new Right Certificates (which do not affect the
rights, duties, liabilities or responsibilities of the Rights Agent) evidencing Rights in such form
as may be approved by its Board to reflect any adjustment or change in the Purchase Price and/or
the number or kind or class of shares of stock issuable upon exercise of the Rights made in
accordance with the provisions of this Rights Plan.



SECTION 5. Registration; Transfer and Exchange of Right Certificates; Mutilated, Destroyed,
Lost or Stolen Right Certificates.



(a) Following a Distribution Date, receipt by the Rights Agent of written notice to that
effect and all other relevant information and documents referred to in Section 3, the Rights Agent
shall keep or cause to be kept, at its office designated for such purpose, books for registration
and transfer of the Right Certificates. Such books shall show with respect to each Right
Certificate the name and address of the registered holder thereof, the number of Rights indicated
on the Right Certificate and the certificate number.


 


9









 





(b) At any time after a Distribution Date and prior to the Expiration Date, any Right
Certificate or Certificates may, upon the terms and subject to the conditions set forth in this
Rights Plan, be transferred, split up, combined or exchanged for another Right Certificate or
Certificates evidencing a like number of Rights as the Right Certificate or Certificates
surrendered. Any registered holder desiring to transfer, split up, combine or exchange any Right
Certificate or Certificates shall surrender such Right Certificate or Certificates (with, in the
case
of a transfer, the form of assignment and certificate on the reverse side thereof duly
executed), shall make such requests 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 office of the Rights Agent designated for such purpose, accompanied by a signature guarantee
and such other and further documentations as the Rights Agent or the Company may require. The Right
Certificates are transferable only on the registry books of the Rights Agent. Neither the Rights
Agent nor the Company shall be obligated to take any action whatsoever with respect to the transfer
of any such surrendered Right Certificate or Certificates until the registered holder of the Rights
has (a) complied with the requirements of Section 6(f), (b) provided such additional evidence of
the Beneficial Owner (or former Beneficial Owner) of the Rights represented by such Right
Certificate as the Rights Agent shall require, and (iii) paid a sum sufficient to cover any tax or
charges that may be imposed in connection with any transfer, split up, combination or exchange of
Right Certificates as required by Section 6 hereof. Upon satisfaction of the foregoing
requirements, the Rights Agent shall, subject to the provisions of this Rights Plan, countersign
and deliver to the Person entitled thereto a Right Certificate or Right Certificates, as the case
may be, as so requested. The Rights Agent shall forward any such sum collected by it to the
Company or to such Persons as the Company shall specify by written notice. The Rights Agent shall
have no duty or obligation under any Section of this Rights Plan requiring the payment of taxes or
charges unless and until it is satisfied that all such taxes and/or charges have been paid in full
or are not payable.



(c) Subject to the provisions of this Rights Plan, at any time after a Distribution Date and
prior to the Expiration Date, upon receipt by the Company and the Rights Agent of evidence
satisfactory to them of the loss, theft, destruction or mutilation of a Right Certificate, and, in
case of loss, theft or destruction, of indemnity or security satisfactory to them, and, at the
Company’s or the Rights Agent’s request, reimbursement to the Company and the Rights Agent of all
reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of
the Right Certificate if mutilated, accompanied by a signature guarantee and such other and further
documentations as the Rights Agent or the Company may require the Company will issue and deliver a
new Right Certificate of like tenor to the Rights Agent for countersignature and delivery to the
registered holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated.




SECTION 6. Exercise of Rights.



(a) Subject to the provisions of this Rights Plan, the registered holder of any Right
Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein,
including Sections 6(e), 6(f), 8(e), 12 and 20) in whole or in part at any time after a
Distribution Date and prior to the Expiration Date upon surrender of the Right Certificate, with
the form of election to purchase and the certificate on the reverse side thereof properly completed
and duly executed, to the Rights Agent at the office of the Rights Agent designated for such
purpose, accompanied by a signature guarantee and such other and further documentations as the
Rights Agent or the Company may require, together with payment (in lawful money of the United
States of America by electronic or wire transfer, or certified check or bank draft payable in
immediately available funds to the order of the Rights Agent) of the aggregate Purchase Price with
respect to the Rights then to be exercised and an amount equal to any applicable tax or charge.


 


10









 





(b) Except as otherwise provided herein, upon satisfaction of the requirements of Section 6(a)
and subject to Section 17(k), the Rights Agent shall thereupon promptly (i)(A) requisition from any
transfer agent of the Preferred Stock (or make available, if the Rights Agent is the transfer agent
therefor) certificates for the total number of one one-millionths of a share of Preferred Stock to
be purchased (and the Company hereby irrevocably authorizes each such transfer agent to comply with
all such requests) or (B) if the Company shall have elected to deposit the shares of Preferred
Stock issuable upon exercise of the Rights hereunder with a depositary agent under a depositary
arrangement and provides written notice of such election to the Rights Agent, request from the
depositary agent depositary receipts representing interests in such number of one one-millionths of
a share of Preferred Stock to be purchased (in which case certificates for the shares of Preferred
Stock represented by such receipts shall be deposited by the transfer agent with the depositary
agent and the Company hereby directs any such depositary agent to comply with such request),
(ii) when necessary to comply with this Rights Plan, requisition from the Company the amount of
cash, if any, to be paid in lieu of issuance of fractional shares in accordance with Section 11;
(iii) after receipt of such certificates or depositary receipts and cash (if any), cause the same
to be delivered to or upon the order of the registered holder of such Right Certificate (with such
certificates or receipts registered in such name or names as may be designated by such holder) and
(iv) when necessary to comply with this Rights Plan, after receipt of the cash requisitioned from
the Company, deliver such cash to or upon the order of the registered holder of such Right
Certificate. If the Company is obligated to deliver Common Stock or other securities or assets
pursuant to this Rights Plan, the Company will make all arrangements necessary so that such
securities and assets are available for delivery by the Rights Agent, if and when necessary to
comply with this Rights Plan.



(c) Each Person (other than the Company) in whose name any certificate for Preferred Stock is
issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of
record of such Preferred Stock 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 taxes or other charges) was made; provided that if the date of such
surrender and payment is a date upon which the transfer books of the Company relating to the
Preferred Stock 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 Stock transfer books of the Company 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
shareholder of the Company with respect to shares for which the Rights shall be exercisable,
including the right to vote, to receive dividends or other distributions or to exercise any
preemptive rights, and shall not be entitled to receive any notice of any proceedings of the
Company except as provided herein.



(d) Except as otherwise provided herein, in case the registered holder of any Right
Certificate shall exercise fewer than all the Rights evidenced thereby, a new Right Certificate
evidencing the number of Rights remaining unexercised shall be issued and delivered by the Company
to the Rights Agent and countersigned and delivered if requested and provided with all necessary
information 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 11.


 


11









 





(e) Notwithstanding anything in this Rights Plan to the contrary, any Rights Beneficially
Owned by (i) an Acquiring Person from and after the date on which the Acquiring Person becomes such
or (ii) a transferee of Rights Beneficially Owned by an Acquiring Person who (A) becomes a
transferee after a Stock Acquisition Date of Rights owned by the relevant Acquiring Person (or
Associate thereof) on the Stock Acquisition Date or (B) becomes a transferee prior to or
concurrently with a Stock Acquisition Date and, in the case of this clause (B), receives such
Rights (I) with actual knowledge that the transferor is or was an Acquiring Person (or an Associate
of an Acquiring Person) or (II) pursuant to either (x) a transfer (whether or not for
consideration) from the Acquiring Person (or an Associate thereof) to holders of equity interests
in such Acquiring Person (or in such Associate thereof) or to any Person with whom the Acquiring
Person (or an Associate thereof) has any continuing agreement, arrangement or understanding
regarding the transferred Rights or (y) a transfer which the Board determines in good faith is part
of a plan, arrangement or understanding which has as a primary purpose or effect the avoidance of
this Section 6(e), shall become null and void without any further action, and no holder of such
Rights (other than a transferee not of a type described in clause (ii)) shall have any rights
whatsoever with respect to such Rights, whether under this Rights Plan or otherwise. The Company
shall use all reasonable efforts to ensure that the provisions of this Section 6(e) are complied
with, but neither the Company nor the Rights Agent shall have any liability to any holder of Right
Certificates or other Person as a result of the Company’s failure to make any determinations with
respect to an Acquiring Person or its Associate or any transferee of an Acquiring Person (or an
Associate thereof) hereunder.



(f) Notwithstanding anything in this Rights Plan to the contrary, neither the Rights Agent nor
the Company shall be obligated to undertake any action with respect to a holder of any Right
Certificate or other securities upon the occurrence of any purported transfer pursuant to Section 5
or exercise pursuant to this Section 6 unless such registered holder of the applicable Rights
(i) shall have properly completed and duly executed the certificate contained in the form of
assignment or election to purchase, as the case may be, set forth on the reverse side of the Right
Certificate surrendered for such transfer or exercise, as the case may be, (ii) shall not have
indicated an affirmative response to clause 1 or 2 thereof, (iii) shall be in compliance with
Section 12, (iv) shall have provided such additional evidence of the identity of the Beneficial
Owner (or former Beneficial Owner) thereof as the Company or the Rights Agent shall require and
(v) shall have paid a sum sufficient to cover any tax or charge that may be imposed in connection
with any transfer or exchange of Rights Certificates as required by Section 8(e) hereof.



SECTION 7. Cancellation and Destruction of Right Certificates. All Right Certificates
surrendered for exercise, transfer, split up, redemption, combination or exchange shall, if
surrendered to the Company or to any of its agents (other than the Rights Agent), be delivered to
the Rights Agent for cancellation or in canceled form, or, if surrendered to the Rights Agent,
shall be canceled by it, and no Right Certificates shall be issued in respect or lieu thereof
except as expressly permitted by this Rights Plan. The Company shall deliver to the Rights Agent
for cancellation, and upon receipt thereof with written instructions, the Rights Agent shall
cancel, any other Right Certificate purchased or acquired by the Company otherwise than upon the
exercise thereof. Subject to applicable law, regulation and the Rights Agent’s internal policies,
the Rights Agent shall, upon written request of the Company (and at the expense of the
Company), the Rights Agent shall destroy or cause to be destroyed such cancelled Rights
Certificates, and in such case shall deliver a certificate of destruction thereof to the Company. 


 


12









 






SECTION 8. Reservation and Availability of Capital Stock.



(a) The Company covenants and agrees that it will cause to be reserved and kept available a
number of authorized but not outstanding shares of Preferred Stock sufficient to permit the
exercise in full of all outstanding Rights as provided in this Rights Plan.



(b) So long as the Preferred Stock issuable upon the exercise of Rights may be listed on any
national securities exchange, the Company shall use its best efforts to cause, from and after such
time as the Rights become exercisable, all securities reserved for such issuance to be listed on
any such exchange upon official notice of issuance upon such exercise.



(c) The Company shall (i) file, as soon as practicable following the earliest date after a
Stock Acquisition Date and determination of the consideration to be delivered by the Company upon
exercise of the Rights in accordance with Section 9(a)(ii), or as soon as is required by law
following a Distribution Date, as the case may be, a registration statement under the Securities
Act with respect to the securities issuable upon exercise of the Rights, (ii) cause such
registration statement to become effective as soon as practicable after such filing and (iii) cause
such registration statement to remain effective (with a prospectus at all times meeting the
requirements of the Securities Act) until the earlier of (A) the date as of which the Rights are no
longer exercisable for such securities and (B) the Expiration Date. The Company shall also take
such action as may be appropriate to ensure compliance with the securities or blue sky laws of the
various states in connection with the exercisability of the Rights. The Company may temporarily
suspend, for a period of time not to exceed 90 days after the date set forth in Section 8(c)(i),
the exercisability of the Rights in order to prepare and file such registration statement and
permit it to become effective. Upon any such suspension, the Company shall issue a public
announcement stating that the exercisability of the Rights has been temporarily suspended, as well
as a public announcement when the suspension is no longer in effect. The Company shall notify the
Rights Agent whenever it makes a public announcement pursuant to this Section 8(c) and give the
Rights Agent a copy of such announcement. Notwithstanding anything contained in this Rights Plan to
the contrary, the Rights shall not be exercisable for securities in any jurisdiction if the
requisite qualification in such jurisdiction has not been obtained, such exercise is not permitted
under applicable law or a registration statement in respect of such securities has not been
declared effective.



(d) The Company shall take all such action as may be necessary to ensure that all one
one-millionths of a share of Preferred Stock issuable upon exercise of Rights shall, at the time of
delivery of the certificates for such securities (subject to payment of the Purchase Price), be
duly authorized, validly issued, fully paid and nonassessable.


 


13









 





(e) The Company shall pay when due and payable any and all taxes and charges that may be
payable in respect of the issuance or delivery of the Right Certificates and of any certificates
for Preferred Stock upon the exercise of Rights. The Company shall not, however, be required to pay
any tax or charge that may be payable in respect of any transfer involved in the issuance or
delivery of any Right Certificates or any certificates for Preferred
Stock to a Person other than the registered holder of the applicable Right Certificate and
prior to any such issuance or delivery of any Right Certificates or any certificates for Preferred
Stock, any such tax or charge shall have been paid by the holder of such Right Certificate or it
shall have been established to the Company’s or the Rights Agent’s satisfaction that no such tax or
charge is due.




SECTION 9. Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights.



(a) (i) To preserve the actual or potential economic value of the Rights, if at any time after
the date hereof there shall be any change in the Common Stock or Preferred Stock, whether by reason
of stock dividends, stock splits, reverse stock splits, recapitalization, mergers, consolidations,
combinations or exchanges of securities, split-ups, split-offs, spin-offs, liquidations, other
similar changes in capitalization, any distribution or issuance of cash, assets, evidences of
indebtedness or subscription rights, options or warrants to holders of Common Stock or Preferred
Stock, as the case may be (other than distribution of the Rights or regular quarterly cash
dividends) or otherwise, then, in each such event the Board shall make such appropriate adjustments
in the number of shares of Preferred Stock (or the number and kind of other securities) issuable
upon exercise of each Right (or in exchange for any Right pursuant to Section 20), the Purchase
Price and Redemption Price in effect at such time and/or the number of Rights outstanding at such
time (including the number of Rights or fractional Rights associated with each share of Common
Stock) such that following such adjustment such event shall not have had the effect of reducing or
limiting the benefits the holders of the Rights would have had absent such event. If an event
occurs that requires an adjustment under both this Section 9(a)(i) and Section 9(a)(ii), the
adjustment provided for in this Section 9(a)(i) shall be made prior to, and in addition to, any
adjustment required pursuant to Section 9(a)(ii).




(ii) In the event that any Person becomes an Acquiring Person at any time after the
date of this Rights Plan, each holder of a Right shall (except as otherwise provided herein,
including Section 6(e)) be entitled to receive upon exercise thereof (in accordance with the
provisions of Section 6) at the then current Purchase Price such number of one-millionths of
a share of Preferred Stock equal to the result obtained by dividing (x) the product obtained
by multiplying the then current Purchase Price by the number of one-millionths of a share of
Preferred Stock for which a Right was exercisable immediately prior to the occurrence of
such event (such product being from such time on the “Purchase Price” for each Right and for
all purposes of this Rights Plan) by (y) 50% of the current market price per share of Common
Stock (determined pursuant to Section 9(b)(i)) on the date of the occurrence of such event.


 


14









 





(b) (i) For purposes of computations hereunder other than computations made pursuant to
Section 11, the “current market price” per share of Common Stock on any date shall be the average
of the daily closing prices per share of such Common Stock at the close of the regular session of
trading for the 30 consecutive Trading Days immediately prior to but not including such date; and
for purposes of computations made pursuant to Section 11, the “current market price” per share of
Common Stock for any Trading Day shall be the closing price per share of Common Stock at the close
of the regular session of trading for such Trading Day; provided that if the current market price
per share of the Common Stock is determined during a
period that is in whole or in part following the announcement by the issuer of such Common
Stock of (A) a dividend or distribution on such Common Stock payable in shares of such Common
Stock, securities exercisable for or convertible into shares of such Common Stock (other than the
Rights), or (B) any subdivision, combination or reclassification of such Common Stock, and prior to
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 market price” shall be
properly adjusted to take into account ex-dividend trading. The closing price for each day shall be
the last sale price, regular way, at the close of the regular session of trading or, if 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 at the close of
the regular session of trading with respect to securities listed or admitted to trading on the
NASDAQ Stock Market or, if the shares of Common Stock are not listed or admitted to trading on the
NASDAQ Stock Market, on the principal national securities exchange on which the shares of Common
Stock are listed or admitted to trading or, if the shares of Common Stock 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 the National Association of Securities Dealers, Inc. Automated Quotation System or such
other system then in use or, if on any such date the shares of Common Stock 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 Common Stock selected by the Board (in each case prices which
are not identified as having been reported late to the system). If on any such date, no market
maker is making a market in the Common Stock or the Common Stock is not publicly held or not so
listed or traded, the “current market value” of such shares on such date shall be as determined in
good faith by the Board (or, if at the time of such determination there is an Acquiring Person, by
a nationally recognized investment banking firm selected by the Board) which determination shall be
described in a statement filed with the Rights Agent and shall be conclusive for all purposes.




(ii) For the purpose of any computation hereunder, the “current market price” per share
of Preferred Stock shall be determined in the same manner as set forth above for the Common
Stock in Section 9(b)(i) (other than the last sentence thereof). If the current market price
per share of Preferred Stock cannot be determined in such manner, the “current market price”
per share of Preferred Stock shall be conclusively deemed to be an amount equal to 1,000,000
(as such number may be appropriately adjusted for such events as stock splits, reverse stock
splits, stock dividends and recapitalizations with respect to the Common Stock occurring
after the date of this Rights Plan) multiplied by the current market price per share of
Common Stock (as determined pursuant to Section 9(b)(i)). For all purposes of this Rights
Plan, the “current market price” of one one-millionth of a share of Preferred Stock shall be
equal to the “current market price” of one share of Preferred Stock divided by 1,000,000.




(iii) For the purpose of any computation hereunder, the value of any securities or
assets other than Common Stock or Preferred Stock shall be the fair value as determined in
good faith by the Board, or, if at the time of such determination there is an Acquiring
Person, by a nationally recognized investment banking firm selected by the Board, which
determination shall be described in a statement filed with the Rights Agent and shall be
conclusive for all purposes.


 


15









 





(c)  Notwithstanding any provision of this Rights Plan to the contrary, no adjustment of any
item described in Section 9(a)(i) (e.g., the Purchase Price, the Redemption Price, the number of
shares of Preferred Stock issuable upon exercise of the Rights, etc.) shall be required unless such
adjustment would require an increase or decrease of at least 1% in the relevant item; provided that
any adjustments which by reason of this Section 9(c) are not required to be made shall be carried
forward and taken into account in any subsequent adjustment. All calculations under this Section 9
shall be made to the nearest cent or to the nearest ten-thousandth of a share of Common Stock or
other securities or one ten-billionth of a share of Preferred Stock, as the case may be.



(d) All Rights originally issued by the Company subsequent to any adjustment made hereunder
shall evidence the right to purchase, at the Purchase Price then in effect, the then applicable
number of one-millionths of a share of Preferred Stock and other capital stock issuable from time
to time hereunder upon exercise of the Rights, all subject to further adjustment as provided
herein.



(e) Irrespective of any adjustment or change in the Purchase Price or the number of
one-millionths of a share of Preferred Stock issuable upon the exercise of the Rights, the Right
Certificates theretofore and thereafter issued may continue to express the Purchase Price per one
one-millionth of a share and the number of shares which were expressed in the initial Right
Certificates issued hereunder.



(f) In any case in which this Section 9 shall require that an adjustment in the Purchase Price
be made effective as of a record date for a specified event, the Company may elect to defer (with
prompt written notice thereof to the Rights Agent; and until such written notice is received by the
Rights Agent, the Rights Agent may assume conclusively that no such election has occurred) until
the occurrence of such event the issuance to the holder of any Right exercised after such record
date the number of one-millionths of a share of Preferred Stock or other capital stock, if any,
issuable upon such exercise over and above the number of one-millionths of a share of Preferred
Stock or other capital stock, if any, issuable upon such exercise on the basis of the Purchase
Price in effect prior to such adjustment; provided that the Company shall deliver to such holder a
due bill or other appropriate instrument evidencing such holder’s right to receive such additional
shares upon the occurrence of the event requiring such adjustment.



(g) Anything in this Section 9 to the contrary notwithstanding, the Company shall be entitled
to make such reductions in the Purchase Price, in addition to those adjustments expressly required
by this Section 9, as and to the extent that it, in its sole discretion, determines to be advisable
so that any consolidation or subdivision of the Common Stock or Preferred Stock, issuance wholly
for cash of any Common Stock or Preferred Stock at less than the current market price, issuance
wholly for cash of any Common Stock or Preferred Stock or securities which by their terms are
convertible into or exercisable for Common Stock or Preferred Stock, stock dividends or issuance of
rights, options or warrants referred to in this Section 9 hereafter made by the Company to the
holders of its Common Stock or Preferred Stock shall not be taxable to such shareholders.


 


16









 





(h) The Company agrees that after a Distribution Date, it will not, except as permitted by
Sections 19, 20 or 23, take (or permit any Subsidiary to take) any action if at the time such
action is taken it is reasonably foreseeable that such action will substantially diminish or
otherwise eliminate the benefits intended to be afforded by the Rights.



SECTION 10. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an
adjustment is made as provided in Section 9, the Company shall (i) promptly prepare a certificate
duly executed by an executive officer of the Company setting forth such adjustment, including any
adjustment in Purchase Price, the number of shares payable, and a brief reasonably detailed
statement of the facts, computations and methodology accounting for such adjustment, (ii) promptly
file with the Rights Agent and with each transfer agent for the Preferred Stock and the Common
Stock a copy of such certificate and (iii) mail a brief summary thereof to each registered holder
of a Right Certificate (or, if prior to a Distribution Date, to each registered holder of shares of
Common Stock in book-entry form and each holder of a certificate representing shares of Common
Stock) in the manner set forth in Section 22. The Rights Agent shall be fully protected in relying
on any such certificate and on any adjustment or change or statement therein contained and shall
have no duty or liability with respect to, and shall not be deemed to have knowledge of, any
adjustment or change unless and until it shall have received such certificate.




SECTION 11. Fractional Rights and Fractional Shares.



(a) The Company is not required to issue fractions of Rights or to distribute Right
Certificates that evidence fractional Rights. In lieu of any such fractional Rights, the Company
shall pay 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 price of a whole Right. For purposes of this Section 11(a), the current market price of a
whole Right shall be the closing price of a Right at the close of the regular session of trading
for the Trading Day immediately prior to the date on which such fractional Rights would otherwise
have been issuable. The closing price of a Right for any day shall be determined in the manner set
forth for the Common Stock in Section 9(b)(i).



(b) The Company is not required to issue fractions of shares of Preferred Stock (other than
fractions that are multiples of one one-millionth of a share of Preferred Stock) or to distribute
certificates that evidence fractional shares of Preferred Stock (other than fractions that are
multiples of one one-millionth of a share of Preferred Stock) upon exercise of the Rights or upon
exchange of the Rights pursuant to Section 20(a). In lieu of any such fractional shares of
Preferred Stock, the Company 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 price of one one-millionth of a share of Preferred Stock. For purposes of this
Section 11(b), the current market price of one one-millionth of a share of Preferred Stock shall be
one one-millionth of the closing price of a share of Preferred Stock (as determined pursuant to
Section 9(b)(ii)) for the Trading Day immediately prior to the date of such exercise.


 


17









 





(c) Upon any exchange pursuant to Section 20(c), the Company is not required to issue
fractions of shares of Common Stock or to distribute certificates that evidence fractional shares
of Common Stock. In lieu of fractional shares of Common Stock, the Company
shall pay to the registered holders of Right Certificates at the time of the exchange as
herein provided an amount in cash equal to the same fraction of the current market price of one
share of Common Stock. For purposes of this Section 11(c), the current market price of a share of
Common Stock shall be the closing price of a share of Common Stock (as determined pursuant to
Section 9(b)(i)) for the Trading Day immediately prior to the date of such exchange.



(d) Each holder of a Right, by his acceptance of the Right, expressly waives such holder’s
right to receive any fractional Rights or any fractional shares upon exercise or exchange of a
Right except as provided by this Section 11.



(e) Whenever a payment for fractional Rights or fractional shares is to be made by the Rights
Agent, the Company shall (i) promptly prepare and deliver to the Rights Agent a certificate duly
executed by an executive officer of the Company setting forth in reasonable detail the facts
related to such payments and the prices and/or formulas utilized in calculating such payments, and
(ii) provide sufficient monies to the Rights Agent in the form of fully collected funds to make
such payments. The Rights Agent shall be fully protected in relying upon such a certificate and
shall have no duty with respect to, and shall not be deemed to have knowledge of any payment for
fractional Rights or fractional shares under any Section of this Rights Plan relating to the
payment of fractional Rights or fractional shares unless and until the Rights Agent shall have
received such a certificate and sufficient monies.



SECTION 12. Certain Legal and Regulatory Matters. Notwithstanding anything in this Rights
Plan to the contrary, (a) no registered holder of Rights may exercise, and such Rights shall not be
exercisable so long as they are held by such holder, such Rights to the extent that such exercise
would contravene any applicable law or regulation or require any filing with, notice to or action
by or in respect of any governmental or regulatory authority, including the Board of Governors of
the Federal Reserve System, unless and until such filing, notice or action has been made, taken or
obtained and (b) no Rights may be transferred unless such transfer complies with all applicable
laws and regulations (including with respect to the identity of the proposed transferee, the manner
of transfer and any required filing with, notice to or action by or in respect of any governmental
or regulatory authority).



SECTION 13. Agreement of Right Holders. Each holder of a Right, by his acceptance of such
Right, consents and agrees with the Company and the Rights Agent and with every other holder of a
Right that:



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



(b) after a Distribution Date, the Rights will be evidenced by Right Certificates and
transferable only on the registry books of the Rights Agent pursuant to Section 5 and in compliance
with this Rights Plan (including Sections 6(e) and 12);



(c) subject to Sections 5 and 6, the Company and the Rights Agent may deem and treat the
Person in whose name a Right Certificate is registered (or, prior to a Distribution Date, the
Person in whose name a certificate representing Common Stock is registered or, in the case of
shares of Common Stock in book-entry form, the registered holder of Common Stock) as
the absolute owner of such certificate or Common Stock and of the Rights evidenced thereby
(notwithstanding any notations of ownership or writing on the Right Certificate or the certificate
representing Common Stock made by anyone other than the Company or the Rights Agent) for all
purposes whatsoever, and neither the Company nor the Rights Agent, subject to the last sentence of
Section 6(e), shall be affected by any notice to the contrary; and


 


18









 





(d) notwithstanding anything in this Rights Plan to the contrary, neither the Company 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 Rights Plan by reason of any preliminary or
permanent injunction or other order, judgment, decree or ruling (whether interlocutory or final)
issued by a court of competent jurisdiction or by a governmental, regulatory, self-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 that the Company must use its reasonable best efforts to
have any such injunction, order, judgment, decree or ruling lifted or otherwise overturned as soon
as possible.



SECTION 14. Right Certificate Holder Not Deemed a Shareholder. No holder, as such, of any
Right Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the
holder of the shares of capital stock which may at any time be issuable on the exercise of the
Rights represented thereby, nor shall anything contained herein or in any Right Certificate be
construed to confer upon the holder of such Right Certificate any of the rights of a shareholder of
the Company (including any right to vote for the election of directors or upon any matter submitted
to shareholders at any meeting thereof, to give or withhold consent to any corporate action, to
receive notice of meetings or other actions affecting shareholders (except as provided in Section
21), 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 15. Appointment of Rights Agent.



(a) The Company hereby appoints the Rights Agent to act as agent for the Company in accordance
with the express terms and conditions hereof (and no implied terms or conditions), and the Rights
Agent hereby accepts such appointment. The Company may from time to time appoint such co-rights
agents as it may deem necessary or desirable, upon two (2) Business Days’ prior written notice to
the Rights Agent. If the Company appoints one or more co-rights agents, the respective duties of
the Rights Agent and any co-rights agents shall be as the Company shall determine; provided,
however, that 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.



(b) The Company shall pay to the Rights Agent reasonable compensation for all services
rendered by it hereunder in accordance with a fee schedule to be mutually agreed upon and, from
time to time, on demand of the Rights Agent, its reasonable expenses, including but not limited to
the fees and expenses of its counsel, and other disbursements incurred in connection with the
preparation, negotiation, delivery, amendment, execution or administration of this Rights Plan and
the exercise and performance of its duties hereunder, including but not limited to any taxes or
charges imposed as a result of the action taken by it hereunder. The
Company also shall indemnify the Rights Agent for, and to hold it harmless against, any and
all loss, liability, damage, judgment, fine, penalty, claim, demand, settlement, cost or expense
(including, without limitation, the reasonable fees and expenses of legal counsel), incurred
without gross negligence, bad faith or willful misconduct (which gross negligence, bad faith or
willful misconduct must be determined by a final, non-appealable judgment of a court of competent
jurisdiction) on the part of the Rights Agent, for any action taken, suffered or omitted to be
taken by the Rights Agent in connection with the acceptance, administration, exercise and
performance of its duties under this Rights Plan, including without limitation, the costs and
expenses (including attorneys’ fees and expenses) of defending against any claim of liability
hereunder. The costs and expenses incurred in enforcing this right of indemnification shall be paid
by the Company. The provisions of this Section 15 and Section 17 below shall survive the
termination of this Rights Plan, the exercise or expiration of the Rights and the resignation,
replacement or removal of the Rights Agent hereunder, including, without limitation, the reasonable
costs and expenses of defending against a claim of liability hereunder.


 


19









 





(c) The Rights Agent shall be authorized and protected and shall incur no liability for, or in
respect of any action taken, suffered or omitted to be taken by it in the absence of gross
negligence, bad faith or willful misconduct (which gross negligence, bad faith or willful
misconduct must be determined by a final, non-appealable judgment of a court of competent
jurisdiction) in connection with its acceptance and the administration of this Rights Plan and the
exercise and performance of its duties hereunder in reliance upon any Right Certificate or
certificate for the Preferred Stock, the Common Stock, or for any other securities of the Company,
instrument of assignment or transfer, power of attorney, endorsement, affidavit, instruction,
letter, notice, direction, consent, certificate, statement or other paper or document believed by
it to be genuine and to be signed, executed and, where required by this Rights Plan, verified or
acknowledged, by the proper Person or Persons, or otherwise upon the advice or opinion of counsel
as set forth in Section 17 hereof. The Rights Agent shall not be deemed to have any knowledge of
any event of which it was supposed to receive notice thereof hereunder but as to which no notice
was provided, and the Rights Agent shall be fully protected and shall incur no liability for
failing to take any action in connection therewith unless and until it has received such notice in
writing.




SECTION 16. Merger or Consolidation or Change of Name of Rights Agent.



(a) Any Person into or with which the Rights Agent or any successor Rights Agent may be
merged, consolidated or combined, any Person resulting from any merger, consolidation or
combination to which the Rights Agent or any successor Rights Agent shall be a party, or any Person
succeeding to the shareholder services or stock transfer businesses of the Rights Agent or any
successor Rights Agent, shall be the successor to the Rights Agent under this Rights Plan without
the execution or filing of any paper or any further act on the part of any party hereto; provided
that such Person would be eligible for appointment as a successor Rights Agent under the provisions
of Section 18. If at the time such successor Rights Agent succeeds to the agency created by this
Rights Plan any of the Right Certificates have been countersigned but not delivered, any such
successor Rights Agent may adopt the countersignature of a predecessor Rights Agent and deliver
such Right Certificates so countersigned; and if at that time any of the Right Certificates have
not 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 Rights Plan.


 


20









 





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



SECTION 17. Duties of the Rights Agent. The Rights Agent undertakes to perform only the
duties and obligations expressly imposed by this Rights Plan (and no implied duties or obligations)
upon the following terms and conditions, by all of which the Company and the holders of Right
Certificates, by their acceptance thereof, shall be bound:



(a) The Rights Agent may consult with legal counsel selected by it (who may be legal counsel
for the Company and/or the Board of the Company and/or an employee of the Rights Agent or
otherwise), and the advice or opinion of such counsel shall be full and complete authorization and
protection to the Rights Agent and the Rights Agent shall incur no liability for or in respect of
any action taken, suffered or omitted to be taken by it in the absence of gross negligence, bad
faith or willful misconduct and in accordance with such advice or opinion.



(b) Whenever in the performance of its duties under this Rights Plan the Rights Agent deems it
necessary or desirable that any fact or matter (including, without limitation the identity of any
“Acquiring Person” and the determination of “current market price”) be proved or established by the
Company prior to taking, suffering or omitting to take 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 the Chief Executive Officer, the
President, the Chief Financial Officer, or any Executive Vice President, the Secretary or any
Assistant Secretary of the Company and delivered to the Rights Agent; and such certificate shall be
full and complete authorization and protection to the Rights Agent, and the Rights Agent will incur
no liability for or in respect of any action taken, suffered or omitted to be taken by it under the
provisions of this Rights Plan in reliance upon such certificate.



(c) The Rights Agent shall be liable hereunder to the Company and any other Person only for
its own gross negligence, bad faith or willful misconduct (which gross negligence, bad faith or
willful misconduct must be determined by a final, non-appealable judgment of a court of competent
jurisdiction). Anything to the contrary notwithstanding, in no event shall the Rights Agent be
liable for special, punitive, indirect, consequential or incidental loss or damage of any kind
whatsoever (including but not limited to lost profits), even if the Rights Agent has been advised
of the likelihood of such loss or damage. Any liability of the Rights Agent under this Plan will be
limited in the aggregate to fifty thousand dollars ($50,000).



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


 


21









 





(e) The Rights Agent shall not have any liability for or be under any responsibility (i) in
respect of the validity of this Rights Plan 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), (ii) for any breach by the Company of any
covenant or failure by the Company to satisfy any condition contained in this Rights Plan or in any
Right Certificate, (iii) for any change in the exercisability of the Rights (including the Rights
becoming null and void pursuant to Section 6(e)) or (iv) for any change or adjustment in the terms
of the Rights (including the manner, method or amount thereof) provided herein or the ascertaining
of the existence of facts that would require any such change, procedure or adjustment (except with
respect to the exercise of Rights evidenced by Right Certificates after receipt by the Rights Agent
of a certificate delivered pursuant to Section 10 hereof, describing any such change or adjustment
and stating that such change or adjustment is required, upon which the Rights Agent may rely). The
Rights Agent shall not by any act hereunder be deemed to make any representation or warranty as to
the authorization or reservation of any shares of Preferred Stock or other securities to be issued
pursuant to this Rights Plan or any Right Certificate or as to whether any shares of Preferred
Stock or other securities will, when issued, be duly authorized, validly issued, fully paid and
nonassessable.



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



(g) The Rights Agent is hereby authorized and directed to accept instructions with respect to
the performance of its duties hereunder from the Chief Executive Officer, the President, the Chief
Financial Officer or any Executive Vice President, or the Secretary of the Company, and to apply to
such officers for advice or instructions in connection with its duties, and such instructions shall
be full authorization and protection to the Rights Agent and the Rights Agent shall not be liable
for or in respect of any action taken, suffered or omitted to be taken by it in accordance with
instructions of any such officer or for any delay in acting while waiting for such instructions.
The Rights Agent shall be fully authorized and protected in relying upon the most recent
instructions received by it from any such officer. Any application by the Rights Agent for written
instructions from the Company will be provided to the Company in the manner set forth in Section 22
and may, at the option of the Rights Agent, set forth in writing any action proposed to be taken,
suffered or omitted to be taken by the Rights Agent with respect to its duties or obligations under
this Rights Plan and the date on and/or after which such action shall be taken or suffered or such
omission shall be effective. The Rights Agent shall not be liable to the Company or any other
Person for any action taken or suffered by, or omitted to be taken by, the Rights Agent in
accordance with a proposal included in any such application on or after the date specified in such
application (which date shall not be less than three (3) Business Days after, but not including,
the date the Company actually receives such application, unless the Company shall have consented in
writing to an earlier date) unless, prior to taking any such action (or the effective date in the
case of an omission), the Rights Agent shall have received
written instructions from the Company in response to such application specifying the action to
be taken, suffered or omitted to be taken.


 


22









 





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



(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 (through its directors, officers and employees) or by
or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for
any act, omission, default, neglect or misconduct of any such attorneys or agents or for any loss
to the Company or to any other Person resulting from any such act, omission, default, neglect or
misconduct, absent gross negligence, bad faith or willful misconduct (each as determined by a
final, non-appealable judgment of a court of competent jurisdiction) in the selection and continued
employment thereof.



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



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



(l) The Rights Agent shall be authorized and protected and shall incur no liability for or in
respect of any action taken, suffered or omitted to be taken by it in connection with its
acceptance and the administration of this Rights Plan or the exercise or performance of its duties
hereunder in reliance upon any Right Certificate or certificate for Common Stock or for any other
securities of the Company, instrument of assignment or transfer, power of attorney, endorsement,
affidavit, letter, notice, instruction, 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 17 hereof.



(m) In addition to the foregoing, the Rights Agent shall be protected and will incur no
liability for, or in respect of, any action taken, suffered or omitted to be taken by it in
connection with its acceptance and administration of this Rights Plan in reliance upon (i) the
completion and execution of the form of assignment and/or form of election to purchase set forth on
the reverse side of the Right Certificates or (ii) the non- execution or failure to complete the
form of assignment and/or form of election to purchase including, without limitation, any refusal
to honor any otherwise permissible assignment or election by reason of such noncompletion,
nonexecution or failure.


 


23









 





SECTION 18. Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign
and be discharged from its duties under this Rights Plan upon 30 days’ written notice to the
Company and to each transfer agent of the Common Stock and/or Preferred Stock known to the Rights
Agent, as applicable. The Company may remove the Rights Agent or any successor Rights Agent upon
30 days’ written notice to the Rights Agent or successor Rights Agent, as the case may be, and to
each transfer agent of the Common Stock and/or Preferred Stock, as applicable, by registered or
certified mail, and, after a Distribution Date, to the holders of the Right Certificates. If the
Rights Agent resigns or is removed or otherwise becomes incapable of acting, the Company shall
appoint a successor to the Rights Agent. If the Company fails to make such appointment within a
period of 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 (who shall, with such notice, submit his Right Certificate for inspection by the
Company), 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 Company or by such a court, shall be (a) a Person organized, in good standing and
doing business under the laws of the United States or of any state of the United States, authorized
under such laws to exercise stock transfer or corporate trust powers and is subject to supervision
or examination by federal or state authority and which has at the time of its appointment as Rights
Agent a combined capital and surplus of at least $50,000,000 or (b) an affiliate of such Person
described in clause (a). 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; and, except as the context
herein otherwise requires, such successor Rights Agent shall be deemed to be the “Rights Agent” for
all purposes of this Rights Plan. Not later than the effective date of any such appointment, the
Company shall file notice thereof in writing with the predecessor Rights Agent and each transfer
agent of the Common Stock and/or the Preferred Stock, and, subsequent to a Distribution Date, mail
a notice thereof to the registered holders of the Right Certificates. Failure to give any notice
provided for in this Section 18, 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 19. Redemption.



(a) At any time prior to a Distribution Date, the Board may, at its option, redeem all but not
fewer than all of the then outstanding Rights at a redemption price of $0.000001 per Right, as such
amount may be appropriately adjusted pursuant to Section 9(a)(i) (such redemption price being
hereinafter referred to as the “Redemption Price”). The redemption of the Rights may be made
effective at such time, on such basis and with such conditions as the Board in its sole discretion
may establish. The Redemption Price shall be payable, at the option of the Company, in cash, shares
of Common Stock, or such other form of consideration as the Board shall determine.


 


24









 





(b) Immediately upon the action of the Board electing to redeem the Rights (or at such later
time as the Board 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 thereafter the
only right of the holders of Rights shall be to receive the Redemption Price for each Right so
held. The Company shall promptly thereafter give prompt written notice of such redemption to the
Rights Agent and the holders of the Rights in the manner set forth in Section 22; and until such
written notice is received by the Rights Agent, the Rights Agent may presume conclusively that no
such redemption has occurred; provided that the failure to give, or any defect in, such notice
shall not affect the validity of such redemption. The Company shall promptly give, or (by giving
written notice and all necessary information and documents to the Rights Agent) cause the Rights
Agent to give, notice of such redemption to the holders of the then outstanding Rights by mailing
such notice to all such holders at their last addresses as they appear upon the registry books of
the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent
for the Common Stock. 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.




SECTION 20. Exchange.



(a) At any time on or after a Stock Acquisition Date, with respect to all or any part of the
then outstanding and exercisable Rights (which shall not include Rights that have become null and
void pursuant to Section 6(e) or which are not exercisable pursuant to Section 12), the Board may,
at its option, exchange for each Right one one-millionth of a share of Preferred Stock, subject to
adjustment pursuant to Section 9(a)(i) (such exchange ratio being hereinafter referred to as the
“Exchange Ratio”). The exchange of the Rights by the Board may be made effective at such time, on
such basis and with such conditions as the Board in its sole discretion may establish. The Rights
Agent shall be given written notice as soon as practicable of any such exchange and the Exchange
Ratio pursuant to which such exchange is effected and shall be deemed to have no knowledge thereof
until it receives such notice.



(b) Immediately upon the effectiveness of the action of the Board to exchange any Rights
pursuant to Section 20(a) (or at such later time as the Board may establish) and without any
further action and without any notice, the right to exercise such Rights will terminate and
thereafter the only right of a holder of such Rights shall be to receive that number of fractional
shares of Preferred Stock equal to the number of such Rights held by such holder multiplied by the
Exchange Ratio. The Company shall promptly thereafter give prompt written notice of such exchange
to the Rights Agent and the holders of the Rights to be exchanged in the manner set forth in
Section 22; and until such written notice is received by the Rights Agent, the Rights Agent may
presume conclusively that no such exchange has occurred; provided that the failure to give, or any
defect in, such notice shall not affect the validity of such exchange. Any notice which is mailed
in the manner herein provided shall be deemed given, whether or not the holder receives the notice.
Each such notice of exchange will state the method by which the exchange of Rights for fractional
shares of Preferred Stock will be effected and, in the event of any partial exchange, the number of
Rights which will be exchanged. Any partial exchange shall be effected pro rata based on the number
of Rights (other than Rights which have become null
and void pursuant to Section 6(e) or which are not exercisable pursuant to Section 12) held by
each holder of Rights.


 


25









 





(c) In lieu of exchanging all or any part of the then outstanding and exercisable Rights for
fractional shares of Preferred Stock in accordance with Section 20(a), the Board may, at its
option, exchange any such Rights (which shall not include Rights that have become null and void
pursuant to Section 6(e) or which are not exercisable pursuant to Section 12) for shares of Common
Stock at an exchange ratio of one share of Common Stock per Right, as may be adjusted pursuant to
Section 9(a)(i).



(d) Prior to effecting an exchange pursuant to this Section 20, the Board may direct the
Company to enter into a Trust Agreement in such form and with such terms as the Board shall then
approve (the “Trust Agreement”). If the Board so directs, the Company shall enter into the Trust
Agreement and shall issue to the trust created by such agreement (the “Trust”) all of the
fractional shares of Preferred Stock, or shares of Common Stock or other securities, if any,
issuable pursuant to the exchange, and all Persons entitled to receive shares or other securities
pursuant to the exchange shall be entitled to receive such shares or other securities (and any
dividends or distributions made thereon after the date on which such shares or other securities are
deposited in the Trust) only from the Trust and solely upon compliance with the relevant terms and
provisions of the Trust Agreement.




SECTION 21. Notice of Proposed Actions and Certain Other Matters.



(a) If the Company proposes, at any time after a Distribution Date, (i) to pay any dividend
payable in stock of any class or to make any other distribution (other than a regular quarterly
cash dividend out of earnings or retained earnings of the Company) to the holders of Preferred
Stock, (ii) to offer to the holders of its Preferred Stock rights or warrants to subscribe for or
to purchase any additional shares of Preferred Stock or shares of stock of any class or any other
securities, rights or options, (iii) to effect any reclassification of its Preferred Stock (other
than a reclassification involving only the subdivision or combination of outstanding shares of
Preferred Stock), (iv) to effect, or permit any Subsidiary to effect, any consolidation, merger or
combination with any other Person, or to effect any sale or other transfer, in one transaction or a
series of related transactions, of assets or earning power aggregating more than 50% of the assets
or earning power of the Company and Subsidiaries, taken as a whole, or (v) to effect the
liquidation, dissolution or winding-up of the Company, then, in each such case, the Company shall
give to the Rights Agent and each holder of a Right, in accordance with Section 22 hereof, a
written notice of such proposed action specifying the record date for the purposes of any such
dividend, distribution or offering of rights or warrants, or the date on which any such
reclassification, consolidation, merger, combination, sale, transfer, liquidation, dissolution or
winding-up is to take place and the date of participation therein by the holders of Preferred
Stock, if any such date is to be fixed, and such notice shall be so given in the case of any action
covered by Section 21(a)(i) or Section 21(a)(ii) above at least 20 days prior to the record date
for determining holders of the Preferred Stock entitled to participate in such dividend,
distribution or offering, and in the case of any such other action, at least 20 days prior to the
date of the taking of such proposed action or the date of participation therein by the holders of
Preferred Stock, whichever shall be earlier. The failure to give notice required by this Section or
any defect
therein shall not affect the legality or validity of the action taken by the Company or the
vote upon any such action.


 


26









 





(b) The Company shall as soon as practicable after a Stock Acquisition Date give to each
holder of a Right and the Rights Agent, in accordance with Section 22, a written notice of the
occurrence of such event, which shall specify the event and the consequences of the event to
holders of Rights under Section 9.



SECTION 22. Notices. Except as set forth below, all notices, requests and other
communications to any party hereunder and to the holder of any Right shall be in writing (including
facsimile transmission) unless otherwise expressly specified herein. Notices or demands authorized
by this Rights Plan to be given or made to or on the Company or (subject to Section 18) the Rights
Agent shall be sufficiently given or made if sent by overnight delivery service or registered or
certified mail (postage prepaid) to the addresses set forth below (or such other address as such
party specifies in writing to the other party) or by facsimile transmission to the numbers set
forth below (or such other number as such party specifies in writing to the other party):




if to the Company, to:




Fidelity Southern Corporation

3490 Piedmont Road, Suite 1550

Atlanta, Georgia 30305

Attention: James B. Miller, Jr., Chairman and Chief Executive Officer

Telephone: (404) 240-1504

Facsimile: (404) 814-8060




with a copy to:




Baker, Donelson, Bearman, Caldwell & Berkowitz, PC

165 Madison Avenue, Suite 2000

Memphis, Tennessee 38103

Attention: Jackie Prester

Telephone: (901) 577-8114

Facsimile: (901) 577-0762




if to the Rights Agent, to:




Mellon Investor Services LLC

300 Galleria Parkway

Suite 1020

Atlanta, GA 30339

Attn: Judy Hsu




with a copy to:




Mellon Investor Services LLC

480 Washington Blvd. — 29th Fl.

Jersey City, NJ 07310

Attn: Legal Department


 


27









 





Except as otherwise expressly set forth in this Rights Plan, notices or demands authorized by this
Rights Plan to be given or made by the Company or the Rights Agent to the holder of any Right
Certificate or any certificate representing Common Stock is sufficiently given or made if sent by
first class mail (postage prepaid) to each record holder of such Certificate or certificate at the
address of such holder shown on the registry books of the Company. Notwithstanding anything in this
Rights Plan to the contrary, prior to a Distribution Date a public filing by the Company with the
Securities and Exchange Commission shall constitute sufficient notice to the holders of securities
of the Company, including the Rights, for purposes of this Rights Plan and no other notice need be
given to such holders.



SECTION 23. Supplements and Amendments. Except as otherwise provided in this Section 23, at
any time on or prior to a Distribution Date, the Company may, and the Rights Agent shall if the
Company so directs, supplement or amend any provision of this Rights Plan in any respect without
the approval of any holders of Rights, any such supplement or amendment to be evidenced by a
writing signed by the Company and the Rights Agent. At any time after the occurrence of a
Distribution Date, the Company may, and the Rights Agent shall if the Company so directs,
supplement or amend this Rights Plan without the approval of any holders of Rights, any such
supplement or amendment to be evidenced by a writing signed by the Company and the Rights Agent;
provided, however, that no such supplement or amendment may (a) adversely affect the interests of
the holders of Rights as such (other than with respect to Rights Beneficially Owned by an Acquiring
Person), (b) cause this Rights Plan again to become amendable other than in accordance with this
sentence or (c) cause the Rights again to become redeemable. Upon the delivery of a certificate
from the Chief Executive Officer, the President, the Chief Financial Officer, any Executive Vice
President, the Secretary or any Assistant Secretary of the Company stating that the proposed
supplement or amendment is in compliance with the terms of this Rights Plan, the Rights Agent shall
execute such supplement or amendment. Notwithstanding anything contained in this Rights Plan to the
contrary, the Rights Agent may, but shall not be obligated to, enter into any supplement or
amendment that affects the Rights Agent’s own rights, duties, obligations or immunities under this
Rights Plan.



SECTION 24. Successors. All the covenants and provisions of this Rights Plan by or for the
benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective
successors and assigns hereunder.



SECTION 25. Determinations and Actions by the Board, etc. The Board shall have the exclusive
power and authority to administer this Rights Plan and to exercise all rights and powers
specifically granted to the Board or to the Company, or as may be necessary or advisable in the
administration of this Rights Plan, including the right and power to (i) interpret the provisions
of this Rights Plan and (ii) make all determinations deemed necessary or advisable for the
administration of this Rights Plan (including a determination to redeem or exchange or not to
redeem or exchange the Rights or to amend the Rights Plan). 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 in good faith shall be
(x) final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and
all other parties and (y) not subject the Board to any liability to the holders of the Rights. The
Rights Agent is entitled always to presume that the Board acted in good faith and shall be fully
protected and incur no liability in reliance thereon.


 


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SECTION 26. Benefits of this Rights Plan. Nothing in this Rights Plan shall be construed to
give to any Person other than the Company, the Rights Agent and the registered holders of the Right
Certificates (and, prior to a Distribution Date, the certificates representing Common Stock and, in
the case of uncertificated shares, shares of Common Stock in book-entry form) any legal or
equitable right, remedy or claim under this Rights Plan; but this Rights Plan shall be for the sole
and exclusive benefit of the Company, the Rights Agent and the registered holders of the Right
Certificates (and, prior to a Distribution Date, the certificates representing Common Stock and, in
the case of uncertificated shares, shares of Common Stock in book-entry form).



SECTION 27. Severability. If any term, provision, covenant or restriction of this Rights Plan
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 Rights
Plan shall remain in full force and effect and shall in no way be affected, impaired or
invalidated; provided, however, that, if any such excluded term, provision, covenant or
restriction shall affect the rights, immunities, duties or obligations of the Rights Agent
hereunder, the Rights Agent shall be entitled to resign immediately.



SECTION 28. Governing Law. This Rights Plan, each Right and each Right Certificate issued
hereunder shall be deemed to be a contract made under the laws of the State of Georgia 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; provided, however, that all
provisions regarding the rights, duties, obligations and liabilities of the Rights Agent shall be
governed by and construed in accordance with the laws of the State of New York applicable to
contracts made and to be performed entirely within such State.



SECTION 29. Counterparts; Effectiveness. This Rights Plan 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 one and the same instrument and shall become
effective when each party hereto shall have received a counterpart hereof signed by all of the
other parties hereto. A signature to this Rights Plan received or transmitted electronically shall
have the same authority, effect and enforceability as an original signature.



SECTION 30. Descriptive Heading. Descriptive headings of the several Sections of this Rights
Plan are inserted for convenience only and shall not control or affect the meaning or construction
of any of the provisions hereof.



 


29









 






SECTION 31. Force Majeure. Notwithstanding anything to the contrary contained herein, the
Rights Agent shall not incur any liability for not performing, or a delay in the performance of,
any act, duty, obligation or responsibility by reason of any occurrence beyond
the reasonable control of the Rights Agent (including, without limitation, acts of God,
terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunctions or
computer facilities, or loss of data due to power failures or mechanical difficulties with
information storage or retrieval systems, labor difficulties, war or civil unrest).




SECTION 32. Miscellaneous.



(a) Each Person that is a party hereto acknowledges that the Rights Agent is subject to the
customer identification program (“Customer Identification Program”) requirements under the USA
PATRIOT Act and its implementing regulations, and that the Rights Agent must obtain, verify and
record information that allows the Rights Agent to identify each such person or entity.
Accordingly, prior to accepting an appointment hereunder, the Rights Agent may request information
from any such person or entity that will help the Rights Agent to identify such person or entity,
including without limitation, as applicable, such person or entity’s physical address, tax
identification number, organizational documents, certificate of good standing, license to do
business, or any other information that the Rights Agent deems necessary. Each person or entity
that is a party hereto agrees that the Rights Agent cannot accept an appointment hereunder unless
and until the Rights Agent verifies each such person or entity’s identity in accordance with the
Customer Identification Program requirements.



(b) The Bank of New York Mellon Corporation (“BNYM”) has adopted an incentive compensation
program designed (i) to facilitate clients gaining access to and being provided with explanations
about the full range of products and services offered by BNYM and its subsidiaries and (ii) to
expand and develop client relationships. This program may lead to the payment of referral fees
and/or bonuses to employees of BNYM or its subsidiaries who may have been involved in a referral
that resulted in the execution of this Rights Plan, obtaining products or services covered by this
Rights Plan or products or services that may be ancillary or supplemental to such products or
services. Any such referral fees or bonuses are funded by BNYM solely out of fees and commissions
paid under this Rights Plan or with respect to such ancillary or supplemental products or services.



[signature page(s) follow(s)]



 


30









 







IN WITNESS WHEREOF, the parties hereto have caused this Rights Plan to be duly executed by
their respective authorized officers as of the day and year first above written.



	 	 	 	 	 	 	 	 	 	 	 	 	 
	FIDELITY SOUTHERN CORPORATION	 	Attest:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Palmer Proctor, Jr.	 	By:	 	/s/ Martha C. Fleming	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	Name:	 	Palmer Proctor, Jr.	 	 	 	Name:	 	Martha C. Fleming	 	 
	 
	 	Title:	 	President	 	 	 	Title:	 	Corp. Secretary	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	MELLON INVESTOR SERVICES LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	/s/ Mitzi Shannon	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	Name:	 	Mitzi Shannon	 	 
	 
	 	 	 	 	 	 	 	Title:	 	Relationship Manager	 	 







 


 











 




EXHIBIT A




ARTICLES OF AMENDMENT




OF




FIDELITY SOUTHERN CORPORATION




FOR ITS




SERIES B PARTICIPATING CUMULATIVE PREFERRED STOCK




1.




The name of the corporation is “Fidelity Southern Corporation.”



2.




The Articles of Incorporation, as amended effective December 17, 2008, of the Corporation are
amended by adding to the end of Article 4 the heading “Creation of Series B Participating
Cumulative Preferred Stock” and thereafter the powers, rights, and preferences, and the
qualifications, limitations, and restrictions thereof, of the Series B Participating Cumulative
Preferred Stock are as set forth in Exhibit A attached hereto.



3.




The foregoing amendments were adopted on November 18, 2010.



4.




The foregoing amendments were duly adopted by the Board of Directors of the Corporation
without shareholder action. The foregoing amendments did not require shareholder action.



IN WITNESS WHEREOF, Fidelity Southern Corporation has caused these Articles of Amendment to be
executed as of November 19, 2010.



	 	 	 	 	 
	 	Fidelity Southern Corporation

 	 
	 	By:  	/s/ Stephen H. Brolly
 	 
	 	 	Stephen H. Brolly 	 
	 	 	Chief Financial Officer 	 



 


 









 







EXHIBIT A





Fidelity Southern Corporation, a corporation organized and existing under the laws of the
State of Georgia (the “Corporation”), in accordance with the provisions of Section 14-2-602
of the Georgia Business Corporation Code thereof, does hereby certify:



The board of directors of the Corporation (the “Board of Directors”) or an applicable
committee of the Board of Directors, in accordance with the articles of incorporation and bylaws of
the Corporation and applicable law, adopted the following resolution on November 18, 2010 creating
a series of one thousand (1,000) shares of Series B Participating Cumulative Preferred Stock of the
Corporation designated as “Series B Participating Cumulative Preferred Stock”.



RESOLVED, that pursuant to the authority granted to and vested in the Board of Directors in
accordance with the provisions of the Company’s Amended and Restated Articles of Incorporation, as
amended effective December 17, 2008 (the “Articles of Incorporation”), the Board of
Directors hereby creates a series of the Company’s preferred stock and hereby states the
designation and number of shares, and fixes the preferences, limitations, and relative rights
thereof (in addition to the provisions set forth in the Articles of Incorporation of the Company,
which are applicable to the preferred stock of all classes and series), as follows:



SECTION 1. Designation and Number of Shares. The shares of such series shall be designated as
“Series B Participating Cumulative Preferred Stock” (the “Series B Preferred Stock”), and
the number of shares constituting such series shall be one thousand (1,000).



SECTION 2. Dividends and Distributions.



(a) Subject to the prior and superior rights of the holders of any shares of any class or
series of stock of the Corporation ranking prior and superior to the shares of Series B Preferred
Stock with respect to dividends, the holders of shares of Series B Preferred Stock, in preference
to the holders of shares of any class or series of stock of the Corporation ranking junior to the
Series B Preferred Stock in respect thereof, shall be entitled to receive, when, as and if declared
by the Board of Directors out of funds legally available for the purpose, regular quarterly
dividends payable on such dates each year as designated by the Board of Directors (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 any share or fraction of a share of Series B
Preferred Stock, in an amount per share (rounded to the nearest cent) equal to the greater of (i)
$1.00 and (ii) the Multiplier Number (as defined below) times the aggregate per share amount of all
cash dividends or other distributions and the Multiplier Number times the aggregate per share
amount of all non-cash dividends or other distributions (other than (A) a dividend payable in
shares of common stock, no par value, of the Corporation (the “Common Stock”) or (B) 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 B Preferred Stock. As used herein, the “Multiplier Number” shall be 1,000,000;
provided that if, at any time after November 18, 2010, there shall be any change in the Common
Stock, whether by reason of stock dividends, stock splits, reverse stock splits, recapitalization,
mergers, consolidations, combinations or exchanges
of securities, split-ups, split-offs, spin-offs, liquidations or other similar changes in
capitalization, or any distribution or issuance of shares of its capital stock in a merger, share
exchange, reclassification, or change of the outstanding shares of Common Stock, then in each such
event the Board of Directors shall adjust the Multiplier Number to the extent appropriate such that
following such adjustment each share of Series B Preferred Stock shall be in the same economic
position as prior to such event.


 


 









 





(b) The Corporation shall declare a dividend or distribution on the Series B Preferred Stock
as provided in Section 2(a) immediately after it declares a dividend or distribution on the Common
Stock (other than as described in Sections 2(a)(ii)(A) and 2(a)(ii)(B)); provided that if 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 (or, with
respect to the first Quarterly Dividend Payment Date, the period between the first issuance of any
share or fraction of a share of Series B Preferred Stock and such first Quarterly Dividend Payment
Date), a dividend of $1.00 per share on the Series B 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 B
Preferred Stock from the Quarterly Dividend Payment Date immediately preceding the date of issuance
of such shares of Series B Preferred Stock, unless the date of issuance of such shares is on or
before the record date for the first Quarterly Dividend Payment Date, in which case dividends on
such shares shall begin to accrue and be cumulative from the date of issue of such shares, or
unless the date of issue is a date after the record date for the determination of holders of shares
of Series B Preferred Stock entitled to receive a quarterly dividend and on or before such
Quarterly Dividend Payment Date, in which case 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 shares of Series B 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 B Preferred Stock entitled to
receive payment of a dividend or distribution declared thereon, which record date shall not be more
than 60 days prior to the date fixed for the payment thereof.



SECTION 3. Voting Rights. In addition to any other voting rights required by law, the holders
of shares of Series B Preferred Stock shall have the following voting rights:



(a) Each share of Series B Preferred Stock shall entitle the holder thereof to a number of
votes equal to the Multiplier Number on all matters submitted to a vote of shareholders of the
Corporation.



(b) Except as otherwise provided herein or by law, the holders of shares of Series B Preferred
Stock and the holders of shares of Common Stock shall vote together as a single class on all
matters submitted to a vote of shareholders of the Corporation.


 


2









 





(c) (i) If at any time dividends on any Series B Preferred Stock shall be in arrears in an
amount equal to six quarterly dividends thereon, the occurrence of such contingency shall mark the
beginning of a period (herein called a “default period”) which shall extend until such time when
all accrued and unpaid dividends for all previous quarterly dividend periods and for the current
quarterly dividend period on all shares of Series B Preferred Stock then outstanding shall have
been declared and paid or set apart for payment. During each default period, all holders of Series
B Preferred Stock and any other series of Preferred Stock then entitled as a class to elect
directors, voting together as a single class, irrespective of series, shall have the right to elect
two Directors.



(ii) During any default period, such voting right of the holders of Series B Preferred Stock
may be exercised initially at a special meeting called pursuant to Section 3(c)(iii) hereof or at
any annual meeting of shareholders, and thereafter at annual meetings of shareholders; provided
that neither such voting right nor the right of the holders of any other series of Preferred Stock,
if any, to increase, in certain cases, the authorized number of Directors shall be exercised unless
the holders of 10% in number of shares of Preferred Stock outstanding shall be present in person or
by proxy. The absence of a quorum of holders of Common Stock shall not affect the exercise by
holders of Preferred Stock of such voting right. At any meeting at which holders of Preferred Stock
shall initially exercise such voting right, they shall have the right, voting as a class, to elect
Directors to fill such vacancies, if any, in the Board of Directors as may then exist up to two
Directors or, if such right is exercised at an annual meeting, to elect two Directors. If the
number which may be so elected at any special meeting does not amount to the required number, the
holders of the Preferred Stock shall have the right to make such increase in the number of
Directors as shall be necessary to permit the election by them of the required number. After the
holders of the Preferred Stock shall have exercised their right to elect Directors in any default
period and during the continuance of such period, the number of Directors shall not be increased or
decreased except by vote of the holders of Preferred Stock as herein provided or pursuant to the
rights of any equity securities ranking senior to or pari passu with the Series B Preferred Stock.



(iii) Unless the holders of Preferred Stock shall have previously exercised their right to
elect Directors during an existing default period, the Board of Directors may order, or any
shareholder or shareholders owning in the aggregate not less than 10% of the total number of shares
of Preferred Stock outstanding, irrespective of series, may request, the calling of a special
meeting of holders of Preferred Stock, which meeting shall thereupon be called by the Chief
Executive Officer, the President, the Chief Financial Officer, any Executive Vice President or the
Secretary of the Corporation. Notice of such meeting and of any annual meeting at which holders of
Preferred Stock are entitled to vote pursuant to this Section 3(c)(iii) shall be given to each
holder of record of Preferred Stock by mailing such notice to him at the address of such holder
shown on the registry books of the Corporation. Such meeting shall be called for a time not earlier
than 20 days and not later than 60 days after such order or request or in default of the calling of
such meeting within 60 days after such order or request, such meeting may be called on similar
notice by any shareholder or shareholders owning in the aggregate not less than 10% of the total
number of shares of Preferred Stock outstanding, irrespective of series. Notwithstanding the
provisions of this Section 3(c)(iii), no such special meeting shall be called during the period
within 60 days immediately preceding the date fixed for the next annual meeting of shareholders.


 


3









 





(iv) In any default period, the holders of Common Stock, and other classes of stock of the
Corporation if applicable, shall continue to be entitled to elect the whole number of Directors
until the holders of Preferred Stock shall have exercised their right to elect two Directors voting
as a class, after the exercise of which right (x) the Directors so elected by the holders of
Preferred Stock shall continue in office until their successors shall have been elected by such
holders or until the expiration of the default period, and (y) any vacancy in the Board of
Directors may (except as provided in Section 3(c)(ii) hereof) be filled by vote of a majority of
the remaining Directors theretofore elected by the holders of the class of stock which elected the
Director whose office shall have become vacant. References in this Section 3(c) to Directors
elected by the holders of a particular class of stock shall include Directors elected by such
Directors to fill vacancies as provided in clause (y) of the foregoing sentence.



(v) Immediately upon the expiration of a default period, (x) the right of the holders of
Preferred Stock as a class to elect Directors shall cease, (y) the term of any Directors elected by
the holders of Preferred Stock as a class shall terminate, and (z) the number of Directors shall be
such number as may be provided for in the articles of incorporation or bylaws irrespective of any
increase made pursuant to the provisions of Section 3(c)(ii) (such number being subject, however,
to change thereafter in any manner provided by law or in the articles of incorporation or bylaws).
Any vacancies in the Board of Directors effected by the provisions of clauses (y) and (z) in the
preceding sentence may be filled by a majority of the remaining Directors.



(d) The articles of incorporation of the Corporation shall not be amended in any manner
(whether by merger or otherwise) so as to adversely affect the powers, preferences or special
rights of the Series B Preferred Stock without the affirmative vote of the holders of a majority of
the outstanding shares of Series B Preferred Stock, voting separately as a class.



(e) Except as otherwise expressly provided herein or by applicable law, holders of Series B
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 B
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 outstanding shares of Series B
Preferred Stock shall have been paid in full, the Corporation shall not:




(i) declare or pay dividends on, 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 B Preferred Stock;




(ii) declare or pay dividends on, or make any other distributions on, any shares of
stock ranking on a parity (either as to dividends or upon liquidation, dissolution or
winding-up) with the Series B Preferred Stock, except dividends paid ratably on the Series B
Preferred Stock and all such other 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;


 


4









 






(iii) redeem, purchase or otherwise acquire for value any shares of stock ranking
junior (either as to dividends or upon liquidation, dissolution or winding-up) to the Series
B 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 stock of the
Corporation ranking junior (as to dividends and upon dissolution, liquidation or winding-up)
to the Series B Preferred Stock; or




(iv) redeem, purchase or otherwise acquire for value any shares of Series B Preferred
Stock, or any shares of stock ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding-up) with the Series B 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 Series B Preferred Stock and all such other parity
stock 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 value any shares of stock of the Corporation unless the Corporation could,
under paragraph 4(a), purchase or otherwise acquire such shares at such time and in such manner.



SECTION 5. Reacquired Shares. Any shares of Series B Preferred Stock purchased or otherwise
acquired by the Corporation in any manner whatsoever shall be retired promptly after the
acquisition thereof. All such shares shall upon their retirement become authorized but unissued
shares of Preferred Stock without designation as to series and may be reissued as part of a new
series of Preferred Stock to be created by the Board of Directors as permitted by the articles of
incorporation of the Corporation or as otherwise permitted under Georgia law.



SECTION 6. Liquidation, Dissolution and 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 B Preferred Stock unless, prior thereto, the holders of shares of Series B Preferred Stock
shall have received $1.00 per share, plus an amount equal to accrued and unpaid dividends and
distributions thereon, whether or not declared, to the date of such payment; provided that the
holders of shares of Series B Preferred Stock shall be entitled to receive an aggregate amount per
share equal to (x) the Multiplier Number times (y) the aggregate amount to be distributed per share
to holders of Common Stock, or (b) to the holders of stock ranking on a parity (either as to
dividends or upon liquidation, dissolution or winding-up) with the Series B Preferred Stock, except
distributions made ratably on the Series B Preferred Stock and all such other 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.


 


5









 





SECTION 7. Consolidation, Merger, etc. If 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 or any other property, then in any such case the
shares of Series B Preferred Stock shall at the same time be similarly exchanged for or changed
into an amount per share equal to (x) the Multiplier Number times (y) the aggregate amount of
stock, securities, cash or any other property, as the case may be, into which or for which each
share of Common Stock is changed or exchanged.



SECTION 8. No Redemption. The Series B Preferred Stock shall not be redeemable.



SECTION 9. Rank. The Series B Preferred Stock shall rank junior to all other series of the
Preferred Stock as to the payment of dividends and the distribution of assets upon liquidation,
dissolution and winding-up, unless the terms of such series shall specifically provide otherwise,
and shall rank senior to the Common Stock as to such matters. Without limiting the generality of
the foregoing, the Series B Preferred Stock shall rank junior to the Fixed Rate Cumulative
Perpetual Preferred Stock, Series A, as to the payment of dividends and the distribution of assets
upon liquidation, dissolution and winding up.



SECTION 10. Fractional Shares. Series B Preferred Stock may be issued in fractions of a share
which shall entitle the holder, in proportion to such holder’s fractional shares, to exercise
voting rights, receive dividends, participate in distributions and to have the benefit of all other
rights of holders of Series B Preferred Stock.




 


6











 




EXHIBIT B




SUMMARY OF THE TAX BENEFITS PRESERVATION PLAN




ADOPTED BY




FIDELITY SOUTHERN CORPORATION




On November 18, 2010, the Board of Directors of Fidelity Southern Corporation (which we refer
to as “Company,” “we,” “us,” and “our”) authorized and declared a dividend of one preferred stock
purchase right (which we refer to as a “Right”) for each share of our common stock, no par value,
outstanding at the close of business on December 6, 2010, and authorized the issuance of one Right
(subject to adjustment) in respect of each share of our common stock issued after December 6, 2010.
Each Right represents the right to purchase one-millionth (subject to adjustment) of a share of our
Series B Participating Cumulative Preferred Stock, no par value (which we refer to as the
“Preferred Stock”) at a purchase price of $30.00 per one-millionth of a share of Preferred Stock,
subject to adjustment. The terms of the Rights are set forth in the Tax Benefits Preservation
Plan, which our Board of Directors adopted on November 18, 2010 and pursuant to which Mellon
Investor Services LLC agrees to serve as rights agent.



The purpose of the Rights Plan is to preserve the value of certain of our and our subsidiaries
deferred tax assets (which we refer to as “tax benefits”) for U.S. federal income tax purposes. The
tax benefits generally consist of net operating loss carryovers. We have experienced operating
losses, which for federal and state income tax purposes, may be carried forward in certain
circumstances to offset current and future taxable income, which would reduce our federal and state
income tax liability. These tax benefits may be a valuable asset to us and our shareholders.
However, if we experience an “ownership change,” as defined in Section 382 of the Internal Revenue
Code, our ability to use the tax benefits could be substantially limited, and the timing of the
usage of the tax benefits could be substantially delayed, which could significantly impair the
value of our tax benefits. Generally, an “ownership change” occurs if the percentage of our stock
owned by one or more “five percent shareholders” increases by more than fifty percentage points
over the lowest percentage of stock owned by such shareholders at any time during the prior
three-year period or, if sooner, since the last “ownership change” experienced by us.



The Rights Plan is intended to discourage any person from acquiring 5% or more of the
outstanding shares of our common stock without the prior approval of our Board of Directors. If a
person acquires 5% or more of our outstanding common stock, or an existing owner of 5% or more our
common stock acquires additional common stock, the Rights Plan could cause such person to
experience substantial dilution in their voting, liquidation, and dividend rights in our stock.



The Rights Plan does not prevent persons from acquiring our common stock, and, therefore,
there is no guarantee that the Rights Plan will prevent us from experiencing an “ownership change”
under Section 382, which could substantially limit our ability to use the tax benefits.


 


 









 





The following question and answer summary describes in general terms the way in which the
Rights Plan works and the terms of the Rights. A copy of the Rights Plan has been filed with the
Securities and Exchange Commission as an Exhibit to a Registration Statement on Form 8-A and is
available via the internet on the SEC’s website at www.sec.gov. You may also request a
copy of the Rights Plan free of charge by contacting us. This question and answer summary of the
Rights Plan and the Rights does not purport to be complete and is qualified in its entirety by
reference to the Rights Plan, as amended from time to time, the complete terms of which are hereby
incorporated by reference.




	Q:	 	What is the objective of the Rights Plan?

	 
	A:	 	The objective of the Rights Plan is to avoid certain types of owner shifts that could cause an
“ownership change” within the meaning of Section 382 of the Internal Revenue Code, and thereby to
preserve our ability to utilize the tax benefits.

	 
	Q:	 	When are my Rights exercisable?

	 
	A:	 	Prior to a Distribution Date (which is further described in the next question and answer), your
Rights are not exercisable, have no economic value, and do not entitle you to any rights as a
shareholder. After a Distribution Date, if any occurs, each of your Rights would be exercisable
to purchase, for a purchase price of $30.00, for one one-millionth of a share of Preferred Stock.

	 
	Q:	 	When does a Stock Acquisition Date and a Distribution Date occur?

	 
	A:	 	A Stock Acquisition Date occurs on the date of the first public announcement by us or by an
Acquiring Person (further described in the following question and answer) indicating that an
Acquiring Person has become such.




A Distribution Date means the earlier of:







	 	•	 	the 10th business day after the Stock Acquisition Date; and

	 
	 	•	 	the 10th business day after the date of the commencement of a tender or exchange
offer by any person which would or could, if consummated, result in such person
becoming an Acquiring Person, subject to extension by our Board of Directors prior to
the expiration of the tender or exchange offer.







	Q:	 	Who would be considered an Acquiring Person?

	 
	A:	 	Subject to exceptions, any beneficial owner of 5%
or more of our common stock then outstanding and
any person or group of persons that is or becomes
a “5-percent shareholder” of the Company as
described in applicable regulations of the
Department of the Treasury (which we refer to as
a “Threshold Holder”) would be deemed to be an
Acquiring Person. Certain persons would be deemed
not to be an Acquiring Person, including without
limitation:







	 	•	 	The U.S. Government.

	 
	 	•	 	Any existing beneficial owner of 5% or more of our common stock immediately prior to
the date of the Rights Plan, so long as such beneficial owner’s percentage ownership of
our common stock does not undergo certain increases described in the Rights Plan.





 


2









 






	 	•	 	Threshold Holders who became such due to certain actions by us such as stock
dividends, splits, or reverse splints, anti-dilution, or any redemptions by us.

	 
	 	•	 	A person who becomes a Threshold Holder if our Board of Directors determines in its
sole discretion that such person inadvertently became a Threshold Holder and such
person promptly divests a sufficient number of shares of our common stock so that the
person is no longer a Threshold Holder.

	 
	 	•	 	A person who has become a Threshold Holder or who has increased such person’s
percentage stock ownership after becoming a Threshold Holder if our Board of Directors
determines that the attainment of such status or increase has not jeopardized our
ability to use tax benefits and will not jeopardize our ability to use tax benefits;
provided that such person does not further increase his percentage ownership.

	 
	 	•	 	A person that beneficially owns at least a majority of our common stock following
consummation of a qualified tender or exchange offer (as defined in the Rights Plan).

	 
	 	•	 	A strategic investor, which means any beneficial owner of our securities that is
designated as a strategic investor in an agreement between us and the investor, which
agreement may include restrictions and conditions that our Board of Directors approves,
if acquisitions by such person are made pursuant to the terms of the agreement with the
strategic investor.







	Q:	 	Will I receive certificates evidencing the Rights?

	 
	A:	 	Not initially. Until and unless there is a Distribution Date, the Rights will not be evidenced by
separate certificates. The registered holders of our common stock will be deemed to be the
registered holders of the associated Rights. On and after a Distribution Date, if any occurs, the
Rights will be certificated and sent to the record holders of our common stock.

	 
	Q:	 	Are the Rights transferrable?

	 
	A:	 	Not initially. Until and unless there is a Distribution Date, the Rights are transferable only
in connection with the transfer of the underlying shares of our common stock. On and after a
Distribution Date, if any occurs, the Rights detach from the underlying shares of our common
stock and are transferable pursuant to the terms of the Rights Plan.





 


3









 






	Q:	 	When happens to the Rights if there is not a Distribution Date during the term of the Rights Plan?

	 
	A:	 	The Rights have no economic value or governance rights and do not become exercisable for
Preferred Stock until a Distribution Date, if any occurs. At any time before a Distribution Date,
if any occurs, our Board of Directors may:







	 	•	 	redeem all (but not fewer than all) the then outstanding Rights; or

	 
	 	•	 	if a Stock Acquisition Date has occurred, exchange the Rights for Preferred Stock or
our common stock.







In addition, our Board of Directors may determine at any time prior to a Stock Acquisition
Date that the Rights are no longer in our and our shareholders best interests, at which time
the Rights would terminate.




	Q:	 	What is the expiration date of the Rights?

	 
	A:	 	The expiration date of the Rights is the earliest to occur of 36 months and one day after adoption of the Right Plan, the
time at which all the Rights are redeemed or exchanged, the first day of a taxable year in which our Board of Directors
determines that there are no tax benefits that may be carried forward, and a date prior to a Stock Acquisition Date on
which our Board of Directors determines that the Rights and the Rights Plan are no longer in the best interest of us and
our shareholders.

	 
	Q:	 	What happens if a person publicly announces or we publicly announce that such person has become an Acquiring Person?

	 
	A:	 	If any person becomes an Acquiring Person, our Board of Directors may (i) allow the Rights to become exercisable pursuant
to their terms; (ii) exchange each Right for one-millionth share of Preferred Stock or one share of our common stock; or
(iii) redeem each Right for $0.00001, payable in cash, common stock, or other property.

	 
	Q:	 	What happens to the Rights of a person who becomes an Acquiring Person?

	 
	A:	 	Rights beneficially owned by an Acquiring Person from and after the date on which the Acquiring Person becomes such will be
null and void. The holder of Rights which have become null and void will not have any rights with respect to such Rights.
Rights beneficially owned by a transferee of an Acquiring Person will be null and void if:







	 	•	 	The transferee becomes a transferee after a Stock Acquisition Date of Rights owned
by the relevant Acquiring Person (or an associate of an Acquiring Person) on the Stock
Acquisition Date;

	 
	 	•	 	The transferee becomes a transferee prior to or concurrently with a Stock
Acquisition Date and receives such Rights with actual knowledge that the transferor is
or was an Acquiring Person (or an associate of an Acquiring Person);





 


4









 






	 	•	 	The transferee becomes a transferee prior to or concurrently with a Stock
Acquisition Date and the transferee receives such Rights pursuant to a transfer
(whether or not for consideration) from the Acquiring Person (or an associate thereof)
to holders of equity interests in such Acquiring Person (or in such associate thereof)
or to any person with whom the Acquiring Person (or an associate thereof) has any
continuing agreement, arrangement or understanding regarding the transferred Rights; or

	 
	 	•	 	The transferee becomes a transferee prior to or concurrently with a Stock
Acquisition Date and the transferee receives such Rights pursuant to a transfer which
our Board of Directors determines in good faith is part of a plan, arrangement or
understanding which has as a primary purpose or effect the avoidance of the foregoing.







	Q:	 	How does the flip-in feature affect the number of shares of Preferred
Stock subject to the Rights?

	 
	A:	 	If a person becomes an Acquiring Person, the number of shares of
Preferred Stock issuable upon exercise of the Rights will equal the
aggregate purchase price of the Rights divided by 50% of the average
price of our common stock for the 30 consecutive trading days
immediately prior to the occurrence of such person becoming an
Acquiring Person. This is referred to as a “flip-in” feature.

	 
	Q:	 	May our Board of Directors redeem the Rights?

	 
	A:	 	At any time prior to a Distribution Date, our Board of Directors may
redeem all, but not less than all, the Rights. The redemption price is
$0.00001 per Right. The redemption amount may be paid in cash, common
stock, or other consideration.

	 
	Q:	 	May our Board of Directors exchange the Rights?

	 
	A:	 	Any time after a Stock Acquisition Date, our Board of Directors may
exchange each Right for one-millionth of a share of Preferred Stock or
one share of our common stock, at its discretion.

	 
	Q:	 	How can the Rights Plan be amended?

	 
	A:	 	At any time on or prior to a Distribution Date, we may, and the Rights
Agent shall if we so direct, supplement or amend any provision of the
Rights Plan without the approval of any holders of Rights.







After a Distribution Date, we may, and the Rights Agent shall if we so direct, supplement or
amend the Rights Plan without the approval of any holders of Rights; provided, however, that
no such supplement or amendment may (a) adversely affect the interests of the holders of
Rights as such (other than with respect to Rights beneficially owned by an Acquiring Person
and certain affiliated persons), (b) cause the Rights Plan again to become amendable other
than in accordance with the provision described in this paragraph or (c) cause the Rights
again to become redeemable.


 


5









 






	Q:	 	If a person becomes a Threshold Holder that would be deemed an
Acquiring Person without action of our Board of Directors, how is the
Threshold Holder affected and how are the remaining holders of Rights
affected?

	 
	A:	 	If a person becomes a Threshold Holder that would be deemed to be an
Acquiring Person without action of our Board of Directors, our Board
of Directors has several options to address the situation:







	 	•	 	Our Board of Directors could determine that such Threshold Holder is not an
Acquiring Person because, for example, (i) the person became a Threshold Holder
inadvertently and such person agrees to promptly divest itself of stock that would
cause it to no longer be a Threshold Holder, or (ii) such person’s acquisition has not
jeopardized our ability to use tax benefits and will not jeopardize our ability to use
tax benefits and the person doesn’t acquire additional stock. In this case, the Rights
do not become exercisable, and neither the Threshold Holder nor any of the other
holders of Rights are affected.

	 
	 	•	 	If the Threshold Holder is or becomes an Acquiring Person, our Board of Directors
could allow the Rights to become exercisable by doing nothing. The “flip-in” feature
would be triggered. The Rights would be exercisable after the Distribution Date and
prior to their expiration date. The following examples illustrate the impact that the
flip-in feature would have on an Acquiring Person and a holder of Rights who is not an
Acquiring Person.







Example




For this example, assume that the total number of shares of our common stock issued and
outstanding on the Distribution Date is 10,660,024 (which is the number of shares issued
and outstanding on October 31, 2010). Assume that the Acquiring Person holds a total of
700,000 shares of our common stock, or approximately 6.5% of the outstanding shares of
the issued and outstanding shares of our common stock. Assume that another shareholder
is the registered holder of 1,000 shares of our common stock and, therefore, 1,000
Rights (which we refer to as the “Rights Holder”). Assume that the exercise price for
each Right is $30.00. Assume that the market price for our common stock, which is equal
to the average daily closing price for the 30 consecutive trading days prior to the date
on which the Acquiring Person becomes such, is $10.00 per share. Assume that the
economic and voting value of one-millionth of a share of the Preferred Stock is the same
as one share of our common stock. Assume that there are no issued and outstanding shares
of any class or series of our preferred stock as of the Distribution Date.




After the Distribution Date and before the expiration date, the Rights Holder may elect
to exercise the Rights by paying an exercise price of $30,000.00, which represents
$30.00 per Right, to receive 6,000 one-millionths of a share of Preferred Stock,
calculated as follows: $30.00, which represents the exercise price per Right, times
1,000, which represents the number of Rights exercised, divided by $5.00, which
represents 50% of the market price our common stock, equals 6,000 one-millionths of a share of Preferred Stock. The Rights Holder would pay $30,000.00 to
receive the voting and economic equivalent of $60,000 of our common stock based upon the
$10.00 per share market price.


 


6









 






If all Rights Holders, other than the Acquiring Person, exercised their Rights, the
total number of one-millionth of shares of Preferred Stock issued would be 59,760,144,
calculated as follows: 9,960,024, which represents 10,660,024 Rights outstanding less
700,000 voided Rights held by the Acquiring Person, times $30.00, which represents the
exercise price per Right, divided by $5.00, which represents 50% of the market price of
our common stock.




The Acquiring Person’s Rights would not be exercisable as they would become null and
void under the Rights Plan. If all of the Rights Holders, other than the Acquiring
Person, exercised their Rights, the Acquiring Person’s percentage ownership of us (based
on a common-stock equivalent basis in terms of economic value and voting rights) would
be diluted from 6.5% to approximately 1%, calculated as follows: 700,000, which
represents shares of our common stock held by the Acquiring Person, divided by
70,420,168, which represents the sum of 59,760,144, (which represents the number of
 shares of Preferred Stock issued upon exercise of Rights), plus 10,660,024, (which
represents the number of shares of our common stock outstanding), multiplied by 100%.




	 	•	 	Our Board of Directors could exchange each Right for one-millionth of a share of
Preferred Stock or one share of our common stock. Rights that were or are held by the
Acquiring Person or are otherwise null and void would not be exchangeable. This results
in dilution to the Acquiring Person without requiring a cash payment from the holders
of Rights. The following example illustrates the impact that an exchange would have on
an Acquiring Person and a holder of Rights who is not an Acquiring Person.







Example




For this example, assume that the total number of shares of our common stock issued and
outstanding on the Distribution Date is 10,660,024 (which is the number of shares issued
and outstanding on October 31, 2010). Assume that the Acquiring Person holds a total of
700,000 shares of our common stock, or approximately 6.5% of the outstanding shares of
the issued and outstanding shares of our common stock. Assume that another shareholder
is the registered holder of 1,000 shares of our common stock and, therefore, 1,000
Rights (which we refer to as the “Rights Holder”). Assume that the economic value and
voting rights of one-millionth of a share of the Preferred Stock is the same as one
share of our common stock.


 


7









 






Our Board of Directors will determine whether to exchange Rights for Preferred Stock or
our common stock. Thereafter, all holders of Rights, other than the Acquiring Person,
will exchange each of their Rights either for one-millionth of a share of Preferred
Stock or one share of our common stock. The Acquiring Person’s Rights would not be
exchangeable as they would become null and void under the
Rights Plan. The Rights Holder would receive, upon the exchange of the Rights Holder’s
Rights, 1,000 shares of Preferred Stock or 1,000 shares of our common stock.




As a result of the exchange, the Acquiring Person’s percentage ownership of us (based on
a common-stock equivalent basis in terms of economic value and voting rights) would be
diluted from 6.5% to approximately 3.4%, calculated as follows: 700,000, which
represents the number of shares of our common stock held by the Acquiring Person,
divided by 20,620,048, which represents the sum of 10,660,024, which represents the
number of shares or our common stock outstanding before the exchange, plus 9,960,024,
which represents the number of Rights exchanged by all holders of Rights except the
Acquiring Person for shares of Preferred Stock or common stock, multiplied by 100%.




	 	•	 	Our Board of Directors could redeem the Rights within 10 business days of the Stock
Acquisition Date for $0.000001 per Right, or $0.001 to the holder of 1,000 Rights. The
payment could be made in cash, shares, or other property. As a result, the Acquiring
Person would be unaffected by the Rights and the holders of the Rights would not have
the ability to exercise the Rights.







 


8











 




EXHIBIT C




[FORM OF RIGHT CERTIFICATE]




			
	 	 	 
	No. R -
	 	[Number of] Rights






NOT EXERCISABLE AFTER THE EARLIER OF                     , 20           AND THE DATE ON WHICH THE RIGHTS
EVIDENCED HEREBY ARE REDEEMED OR EXCHANGED BY THE COMPANY AS SET FORTH IN THE TAX BENEFITS
PRESERVATION PLAN. AS SET FORTH IN THE TAX BENEFITS PRESERVATION PLAN, RIGHTS ISSUED TO, OR
BENEFICIALLY OWNED BY, ANY PERSON WHO IS, WAS OR BECOMES AN ACQUIRING PERSON (AS SUCH TERMS ARE
DEFINED IN THE TAX BENEFIT PRESERVATION PLAN), WHETHER CURRENTLY BENEFICIALLY OWNED BY OR ON BEHALF
OF SUCH PERSON OR BY ANY SUBSEQUENT HOLDER, MAY BE NULL AND VOID. AS SET FORTH IN THE TAX BENEFITS
PRESERVATION PLAN, THE EXERCISE AND TRANSFER OF RIGHTS ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS.



RIGHT CERTIFICATE



FIDELITY SOUTHERN CORPORATION




This Right Certificate certifies that                     , or registered assigns, is the
registered holder of the number of Rights set forth above, each of which entitles the holder (upon
the terms and subject to the conditions set forth in the Tax Benefits Preservation Plan dated as of
November 19, 2010, as the same may be amended from time to time (the “Rights Plan”) between
Fidelity Southern Corporation, a Georgia corporation (the “Company”), and Mellon Investor
Services LLC, a New Jersey limited liability company, as Rights Agent (the “Rights Agent”))
to purchase from the Company, at any time after a Distribution Date and prior to the Expiration
Date, one one-millionth of a fully paid, nonassessable share of Series B Participating Cumulative
Preferred Stock (the “Preferred Stock”) of the Company at a purchase price of $30.00 per
one one-millionth of a share (the “Purchase Price”), payable in lawful money of the United
States of America, upon surrender of this Right Certificate, with the form of election to purchase
and related certificate duly executed, and payment of the Purchase Price at an office of the Rights
Agent designated for such purpose.



Terms used herein and not otherwise defined herein shall have the meanings given to them in
the Rights Plan.



The number of Rights evidenced by this Right Certificate (and the number and kind of shares
issuable upon exercise of each Right) and the Purchase Price set forth above are as of November 19,
2010, and may have been or in the future be adjusted as a result of the occurrence of certain
events, as more fully provided in the Rights Plan.


 


 









 





If the Rights evidenced by this Right Certificate are Beneficially Owned by an Acquiring
Person after an Acquiring Person has become such, such Rights shall become null and void without
any further action, and no holder hereof shall have any rights whatsoever with respect to such
Rights. If the Rights evidenced by this Right Certificate are beneficially owned by (a) a
transferee of Rights Beneficially Owned by such Acquiring Person who (i) becomes a transferee
after a Stock Acquisition Date of Rights owned by the relevant Acquiring Person (or an Associate
thereof) on the Stock Acquisition Date or (ii) becomes a transferee prior to or concurrently with a
Stock Acquisition Date and, in the case of this clause (ii), receives such Rights (A) with actual
knowledge that the transferor is or was an Acquiring Person (or an Associate of an Acquiring
Person) or (B) pursuant to either (I) a transfer (whether or not for consideration) from the
Acquiring Person (or an Associate thereof) to holders of equity interests in such Acquiring Person
(or an Associate thereof) or to any Person with whom the Acquiring Person (or an Associate thereof)
has any continuing agreement, arrangement or understanding regarding the transferred Rights or (II)
a transfer which the board of directors determines in good faith is part of a plan, arrangement or
understanding which has as a primary purpose or effect the avoidance of these transfer
restrictions, such Rights shall become null and void without any further action, and no holder
hereof shall have any rights whatsoever with respect to such Rights.



No holder of the Rights evidenced by this Rights Certificate may exercise, and such Rights
shall not be exercisable so long as they are held by such holder, such Rights to the extent that
such exercise would contravene any applicable law or regulation or require any filing with, notice
to or action by or in respect of any governmental or regulatory authority unless and until such
filling, notice or action has been made, taken or obtained. No Rights evidenced by this Rights
Certificate may be transferred unless such transfer complies with all applicable laws and
regulations (including with respect to the identity of the proposed transferee, the manner of
transfer and any required filing with, notice to or action by or in respect of any governmental or
regulatory authority).



This Right Certificate is subject to all of the terms, provisions and conditions of the Rights
Plan, which terms, provisions and conditions are hereby incorporated herein by reference and made a
part hereof and to which Rights Plan reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the
Company and the holders of the Right Certificates, which limitations of rights include the
temporary suspension of the exercisability of such Rights under the specific circumstances set
forth in the Rights Plan.



At any time after a Distribution Date and prior to the Expiration Date, any Right Certificate
or Certificates may, upon the terms and subject to the conditions set forth below in the Rights
Plan, upon surrender at the office of the Rights Agent designated for such purpose, be transferred
or exchanged for another Right Certificate or Certificates evidencing a like number of Rights as
the Right Certificate or Certificates surrendered. Any registered holder desiring to transfer or
exchange any Right Certificate or Certificates shall surrender such Right Certificate or
Certificates (with, in the case of a transfer, the form of assignment and certificate on the
reverse side thereof duly executed) to the Rights Agent at the office of the Rights Agent
designated for such purpose.


 


 









 





Subject to the provisions of the Rights Plan, the Board of Directors of the Company may, at
its option,




	 	•	 	at any time on or prior to a Distribution Date redeem all but not less than all
of the then outstanding Rights at a redemption price of $0.000001 per Right, as may
be adjusted pursuant to the Rights Plan; or

	 
	 	•	 	at any time on or after a Stock Acquisition Date exchange all or part of the then
outstanding Rights (which shall not include Rights that have become null and void
pursuant to Section 6(e) of the Rights Plan) for fractional shares of Preferred
Stock at an exchange ratio of one millionth of a share of Preferred Stock per Right,
as may be adjusted pursuant to the Rights Plan or for shares of Common Stock at an
exchange ratio of one share of Common Stock per Right, as may be adjusted pursuant
to the Rights Plan. If the Rights shall be exchanged in part, the holder of this
Right Certificate shall be entitled to receive upon surrender hereof another Right
Certificate or Certificates for the number of whole Rights not exchanged.






The Company shall not be required to issue fractions of shares of Preferred Stock (other than
fractions which are multiples of one one-millionth of a share of Preferred Stock) upon the exercise
of the Rights or to distribute certificates which evidence fractional shares of Preferred Stock
(other than fractions which are multiples of one one-millionth of a share of Preferred Stock). In
lieu of any such fractional shares of Preferred Stock, the Company shall pay to the registered
holders of Right Certificates at the time such Rights are exercised an amount in cash equal to the
same fraction of the current market price of one one-millionth of a share of Preferred Stock. If
this Right Certificate shall be exercised in part, the holder shall be entitled to receive upon
surrender hereof another Right Certificate or Certificates for the number of whole Rights not
exercised.



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



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


 


 









 





IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal by its authorized officers.



Dated as of                     , 20          




	 	 	 	 	 	 	 
	 	 	FIDELITY SOUTHERN CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 






Attest:



	 	 	 	 	 
	 	 	 
	Name:

	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 






Countersigned:



MELLON INVESTOR SERVICES LLC, as Rights Agent




	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 






 


 









 







Form of Reverse Side of Right Certificate




FORM OF ASSIGNMENT

(To be executed if the registered holder desires to transfer the Right Certificate.)




FOR VALUE RECEIVED   
            
             
                                        
              hereby sells, assigns and transfers unto
             
             
              
              
            
              
(Please print name and address of
transferee) Rights evidenced by this Right Certificate, together with all right, title and interest
therein, and does hereby irrevocably constitute and appoint Attorney, to transfer the within Right
Certificate on the books of the within named Company, with full power of substitution.



Dated:                     , 20          




	 	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature
	 	 






	 	 	 
	Medallion Signature Guaranteed:

	 	 
	 
	 	 
	 	 	 






Signatures must be guaranteed by a participant in a Medallion Signature Guarantee Program at a
guarantee level acceptable to the Company’s Rights Agent.



 


 









 







CERTIFICATE




The undersigned hereby certifies by checking the appropriate boxes that:




	 	1.	 	the Rights evidenced by this Right Certificate o are o are not
Beneficially Owned by an Acquiring Person and o are o are not being
assigned by or on behalf of a Person who is or was an Acquiring Person or an Associate
of an Acquiring Person (as such terms are defined in the Rights Plan); and

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






Dated:                     , 20          




	 	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature
	 	 






The signatures to the foregoing Assignment and Certificate 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.



 


 









 







FORM OF ELECTION TO PURCHASE

(To be executed if the registered holder desires to exercise Rights

represented by the Right Certificate.)




To: Fidelity Southern Corporation




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



                                                                    
             (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:                     , 20          



	 	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature
	 	 






	 	 	 
	Medallion Signature Guaranteed:

	 	 
	 
	 	 
	 	 	 






Signatures must be guaranteed by a participant in a Medallion Signature Guarantee Program at a
guarantee level acceptable to the Company’s Rights Agent.



 


 









 







CERTIFICATE




The undersigned hereby certifies by checking the appropriate boxes that:




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

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






Dated:                     , 20          




	 	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature
	 	 






The signature to the foregoing Election to Purchase and Certificate 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.