Document:

Lease dated April 11, 2008

 Exhibit 10.53 
 Commercial Lease Contract 
 for Offices in the 
 Property: Bad Homburger Stern 
 Zeppelinstrasse / Werner-Reimers-Strasse 2 / 4, 61352 Bad Homburg 
 between 
 ELINOR Grundstücksgesellschaft mbH & Co. Apollo KG, 
 entered in
the Commercial Registry of the Munich District Court under HR A 90433, 
 business location: Wolfratshauser Strasse 49 

 

			
	Tax number: 144/245/30515	  	Financial Office: Munich I

 hereinafter called “Lessor” 
 and 
 Linotype GmbH, entered in the
Commercial Register of the 
 District Court of Bad Homburg v.d. Höhe under HRB 10375, 
 business location: Du Pont-Strasse 1, 61352 Bad Homburg, 
 represented by the sole authorized representative general manager 
 Mr. Frank Wildenberg, born
December 11, 1966 
 tax number: 32 381/8136 Financial office: Bad Homburg 
 VAT ID no.: DE 250 989 316 
 hereinafter called 
 “Lessee” 
  

			
	 [initials]
	  	[initials]

  

 1 

 Contents 
  

			
	 Preamble
	  	3
	 §  1 Leased property
	  	3
	 §  2 Intended purpose of lease, authorizations, value-added tax option of Lessor
	  	5
	 §  3 Term of lease
	  	7
	 §  4 Rent and advance payment for ancillary costs
	  	8
	 §  5 Changes in rent over time
	  	10
	 §  6 Ancillary costs
	  	11
	 §  7 Provision of security
	  	15
	 §  8 Repair, maintenance and cosmetic repairs, collateral duties of the Lessee
	  	17
	 §  9 Liability of Lessor and Lessee, assumption of liability for the premises by the Lessee
	  	19
	 §  10 Entrusting of the leased property to third parties
	  	20
	 §  11 Structural alterations after surrender
	  	21
	 §  12 Return of the Lease Object
	  	22
	 §  13 Access to the Lease Object by the Lessor
	  	24
	 §  14 Insurance
	  	25
	 §  15 Change of contractual parties
	  	27
	 §  16 Advertising, name and company signs
	  	28
	 §  17 Early contract termination
	  	29
	 §  18 No competition protection
	  	30
	 §  19 Other agreements
	  	30

  

 2 

 Preamble 
  

	1.	The Lessor is owner of the real property (land register of Bad Homburg v.d.H., page 15598, plot 21 no. 308/2) at location Zeppelinstrasse/Werner-Reimers-Strasse 2 / 4 in 61352 Bad
Homburg. 

  

	2.	The office and business premises “Bad Homburger Stern” are on the real property. 

 § 1 
 Leased Property 
  

	1.	The Lessor leases to the Lessee, on the property named in the preamble, in building component A, office spaces which are color-coded in the appended plan (Appendix 1a: leased
property). They are:  

  

	 1.1
	 approx. 497.8 m2
office space on the second floor, approx. 496.6 m2 office space on the third floor, approx. 496.9 m2 office space on the fourth floor, approx. 384.0 m2 office space on the fifth
floor, (incl. roof terrace estimated as being 1/3 in the calculation of space) approx. 1,875.3 m2 office space overall 

  

	 1.2
	 Approx. 32.9 m2
storage space in the basement. 

  

	1.3	In addition, the Lessor leases to the Lessee 50 parking spaces which are color-coded in the appended plan (Appendix 2a and 2b), of these 20 spaces are east of the building
(front, Appendix 2a, framed in red) and 30 spaces are west of the building (rear, Appendix 2b, framed in green), whereas the precise position of the individual parking spaces is not specified. 

 The floor space dimensions are determined according to the guidelines for calculating leased space for industry/gif-G (Association for real
estate-economic research, registered association), version of November 2004. Deviations up to and including 5% of the leased space pursuant to par. 1.1 and/or par. 1.2 are provided for in the contract. The calculation made according to the actual
leased space pursuant to § 4 pars. 2 and 3 of the amount of rent and advance payment for ancillary costs will not be affected. 
  

			
	 [initials]
	  	[initials]

  

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	2.	Commercial activities and advertising in the community areas are not permitted to the Lessee. The outside areas (roof and façade) of the property are not co-leased as well as
movable economic goods and installations within the meaning of § 68 BewG (Valuation Law) which situated are on the real property, in the property or in objects thereof. The use of these areas, in particular the outer façade, also for
advertising, is reserved to the Lessor; the Lessor is authorized to entrust these areas to third parties. § 16 will not be affected. The Lessee will use available collective name-sign installations and similar set-ups and contribute to
operating expenses within the scope of ancillary expenses, § 6. 

  

	3.	The leased property will be made available to the Lessee by the Lessor in accordance with Lessee development planning (Appendices 1b - 1e), the equipment descriptions
(Appendix 4) and the storage plan of the supplementary Lessee special equipment (Appendix 7) in connection with § 19 paragraph 1 of the lease contract. 

  

	 4.
	 The maximal floor load is: 5 kN/m2 (distributed load). 

  

	5.	Aside from installations in the specifications pursuant to Appendix 4 and those mentioned in § 19 par. 1 of this lease contract and installations desired by the Lessee
(also see Appendix 7 storage plan of the supplementary Lessee special requests), the leased property requires no other cooling equipment for reasons of energy conservation. The Lessee must therefore calculate so that the target
limiting value of the workplace guidelines for room temperature (26 degrees Celsius) is not exceeded. Any overruns are as stipulated in the contract. 

 The building is cooled in summer and heated in winter by concrete core cooling. Concrete core cooling functions by means of a water-carrying pipe in the concrete of the floors and ceilings. In order to prevent damage
to this pipe-system in floor and ceiling areas, the Lessee may carry out no borings at all with a depth greater than 5 cm without consulting the Lessor. 
  

 4 

 § 2 
 Intended Purpose of Lease, Authorizations, Value-added Tax Option of Lessor 
  

	1.	The leased property is leased exclusively for intended use as an office for the worldwide marketing, distribution and licensing of virtual products in the form of fonts, scripts and
computer software as well as for the development and adaptation of script designs, script software, software tools and electronic distributions means both for own use and also as a service for third parties. 

  

	2.	It is a matter for the Lessee to obtain personalized authorizations and licenses required for his operation or for his company at his own cost and risk and to fulfill obligations.
This also applies to changes of the intended purpose of the lease. The Lessor accepts no liability for authorizations and licenses being given and/or that given authorizations and licenses continue in existence. If they are refused or revoked,
rescission or termination by the Lessee is excluded. Such authorizations are not the implicit basis of the lease contract. Liability of the Lessor for intent and gross negligence is not affected. 

 The building law authorizations relevant to the property are nevertheless the concern of the Lessor. If, however, building-related authorizations which
are necessary for the Lessee’s business operations for reasons which the Lessee has to plead for, for instance in case of a change of use or rebuilding, are refused or revoked, the Lessee is not entitled on that account in any case to a
warranty claim, refusal of performance or right to cancel. 
 The Lessee will ensure, before conclusion of the contract, that he has been
comprehensively informed about the legal and official obligations for the business he provides and/or operates. The Lessee will undertake to be constantly informed with regard to the Lessor and to comply with all regulations and official
obligations. The Lessee will undertake to submit official authorizations, obligations, etc. for inspection before the handover of the Lessor’s rental property. 
  

	3.	In case of a change in the intended use of the leased property, the Lessee must secure written permission in advance from the Lessor. The Lessor may refuse the permission if there
is good cause or if the change of use is opposed to the interests of the Lessor. 

  

 5 

 The leased property must always only be used for official, legal and contractually permitted purposes. A
declaration of consent of the Lessor is always needed, even if this is not expressly mentioned in the declaration of consent, with the reservation of, for example, a necessary official authorization for a change of use whose provision rests upon the
Lessee at his own expense. The Lessor gives no guarantee that the responsible authorities will permit a change of use. 
  

	4.	The Lessor will opt for the value-added tax pursuant to § 9 par. 2 UStG [Turnover Tax Law]. 

 The Lessee is obliged to use the leased property exclusively for dealings which are not opposed to the Lessor’s input tax reduction. The Lessee will
promptly make available all documents and information specifically requested by the Lessor so that the Lessor can fulfill his obligation to submit evidence with respect to financial authorities. 
 In the case of subleasing or other allocation of usage to third parties, the Lessee is obliged to opt for the value-added tax for the subleasing and to
additionally impose the responsibilities of the preceding paragraph upon third parties in such a way that the Lessor can also derive direct rights in respect to third parties from the agreement (contract for the benefit of third parties). The Lessee
is liable to the Lessor for third party observance of these responsibilities. 
 For the case that the Lessee or third party uses the leased
property in violation of their contractual duties for dealings pursuant to this section 4, which conflicts with the Lessor’s input tax reduction, the Lessee must compensate the Lessor for all economic disadvantages which they have suffered
thereby, that they completely, partially or no longer can opt for the value-added tax. 
 Claims of the Lessor against the Lessee according to
this § 2.4, paragraph before last, become time-barred at expiration of 6 (six) years after termination of the Lease. With intentional violations, this time bar is extended to 10 (ten) years. 
  

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 § 3 
 Term of Lease 
  

	1.	The tenancy begins with the handover of the leased property by the Lessor to the Lessee. 

 The tenancy will be concluded by December 31, 2012. 
  

	2.	After the fixed term of the tenancy, renewal continues for 60 rental months, if it is not cancelled by the Lessee by registered letter by the deadline of 18 months before expiration
of the fixed term of the tenancy, therefore by June 30, 2011 at the latest. Cancellation requires written form (registered letter with advice of delivery). 

  

	3.	If, after expiration of the tenancy extension, the Lessee desires to extend for another 60 months, then he must declare this intention to the Lessor in writing at least 20 months
before expiration of the first period of extension (12/31/2017), therefore by April 30, 2016 at the latest. 

 For an
untimely declaration the tenancy ends at the specified date of 07/31/2017. 
 In the event of a timely declaration, within 4 weeks after
receipt the Lessor will submit an offer regarding the new terms of lease. If an agreement is not reached regarding the new terms of lease by at least 18 months before expiration of the first extension period, the tenancy will end on the specified
date of 12/31/2017. 
  

	4.	The Lessor will hand over the leased property to the Lessee by 09/1/2008, provided that in the first place this tenancy agreement is reached at the latest by 04/04/2008
and is signed by the Lessee with legally binding effect, and secondly, the plans (Appendix 1b - 1e: Lessee development planning) agreed upon by the Lessee and Lessor are on hand for the tenancy agreement. The Lessee and Lessor together
will create a written transfer protocol. The protocol must include the date of the transfer. It will be an addendum to the tenancy agreement which observes the formal requirements of §§ 578, 550, 126 BGB [Civil Code]. Any defects in the
Lease Object and their removal are established in the protocol. Otherwise, the Lessee will recognize by signing the protocol that the leased property is in a condition in accordance with the contract, except for latent defects.

  

 7 

 Defects and remaining work, which only insignificantly affect the suitability of the Lease Object for use
as contracted, do not entitle the Lessee to refuse takeover of the leased property. 
  

	5.	If due to circumstances which are to be defended by the Lessee, a delay of the handover occurs, the Lessee is responsible for payment of the rent and ancillary expenses for the
period of the delay to be defended. 

  

	6.	§ 545 BGB – tacit extension of the tenancy by continuation of use – is excluded. 

 § 4 
 Rent and Advance Payment for Ancillary Expenses 
  

	1.	Rent and advance payment for ancillary expenses are to be paid monthly in advance at the latest by expiration of the third workday (receipt of payment by the Lessor). The obligation
for payment of rent begins on 01/01/2009; the obligation for payment of ancillary expenses begins on the day of transfer of the leased property to the Lessee. The Lessee will undertake, at the request of the Lessor, to consent to payment of
rent together with advance payment of ancillary expenses by way of direct debit order collection by direct debiting of an account to be named by the Lessee. The Lessee will promptly submit the declarations required for this in proper form to the
Lessor after appropriate request – also 

 in the case of any change of the Lessee’s account. 
  

	2.	Monthly rent for the leased property pursuant to § 1 is: 

  

			
	 2.1    For rental areas consistent with § 1.1.1: EUR 11.95/qm,
	  	therefore 22,409.84 EUR
		
	 2.2    For rental areas consistent with § 1.1.2: EUR 7.0/qm,
	  	therefore      230.30 EUR
		
	 2.3    Each parking space consistent with § 1.1.3: EUR 48.0/space
	  	therefore   2,400.00 EUR
		
	 TOTAL monthly net rent
	  	25,040.14 EUR
		
	 plus statutory value-added tax, currently 19%
	  	4,757.63 EUR
		
	 Gross rent
	  	29,797.77 EUR
		
	 (in words: twenty-nine thousand seven hundred and ninety-seven 77/100 EURO)
	  	

  

 8 

	3.	Monthly advance payment for ancillary expenses for the leased property pursuant to § 1 is: 

  

			
	 3.1    For the rental area consistent with § 1.1.1: EUR 3.00/qm, therefore
	  	5,625.90 EUR
		
	 TOTAL monthly advance payment for ancillary expenses
	  	5,625.90 EUR
		
	 plus statutory value-added tax, currently 19%
	  	1,068.92 EUR
		
	 Gross monthly advance payment for ancillary expenses
	  	6,694.82 EUR
		
	 (in words: six thousand six hundred and ninety-four 82/100 EURO)
	  	

  

	4.	If a Lessee or a sublessee or a third party within the meaning of §10 par. 1 transacts dealings with the leased property which contradict the provisions of § 2 par. 4, the
stipulated net rent and advance payment for ancillary expenses increase by the percentage of the value-added tax applicable in each case. The calculation of an ancillary value-added tax is omitted in this respect. § 2 par. 4, last sentence is
not affected. 

  

	5.	Payments of the Lessee to the Lessor which do not cover all outstanding accounts of the Lessor against the Lessee, are used first for repayment as default interest for any damage
caused by delay, then for ancillary expenses and finally for the monthly rent, respectively first for the older, then for the more recent, pursuant to § 366 par. 2 BGB, no matter if the Lessee is undertaking a deviating repayment determination.

  

	6.	If the Lessee defaults on payments, the Lessor is entitled in the assertion of a claim for back payments to insist upon an all-inclusive dunning cost fee from the Lessee in the
amount of EUR 15.00. The assertion of a further claim for damage caused by delay will not be affected. 

  

	7.	A reduction of rent will be taken into consideration after fruitless expiration of a reasonable period legally set by the Lessor for correction of faults by the Lessee. A reduction
of the rent is permissible only with an insignificant lowering of the suitability for use. This is excluded if defects warranting a lowering are based on a circumstance outside of the sphere of the Lessor (e.g., road construction work, traffic
detours, street closure, or disturbances which are not the fault of the Lessor of technical installations or of care for the heat energy, gas, electricity or water). The liability of the Lessor for defects present at conclusion of the contract is
set in accordance with § 9 par. 1. 

  

 9 

	8.	For payment claims of the Lessor against the Lessee, the Lessee is only justified for offset or retention if claims placed for the offset and/or substantiation of retention by the
Lessee against the Lessor are established as being undisputed or legally binding. The Lessee may only offset against or exercise a right of retention against a rent demand if he has reported his intent in text form to the Lessor at least one month
before the due date of the rent. These provisions will continue to apply after termination of the Lease. 

 § 5 

 Changes in rent over time 
 The agreed
monthly net rent according to § 4 clause 2 increases according to the following schedule: 
  

	 	•	 	 on 01/01/10 from €25,040.14 by 2% (€500.80) to: €25,540.94 

  

	 	•	 	 on 01/01/11 from €25,540.94 by 2% (€510.82) to: €26,051.76  

  

	 	•	 	 on 01/01/12 from €26,051.76 by 2% (€521.04) to: €26,572.79. 

 In addition to the net rents shown above, advance payments for ancillary expenses agreed upon in accordance with § 4 clause 3 and the statutory value-added tax are
to be paid. 
 If it proceeds to an extension of the tenancy beyond 12/31/2012 for a further 60 rental Months according to § 3 clause 2, the
agreed monthly net rent increases according to the following schedule: 
  

	 	•	 	 on 01/01/13 from €26,572.79 by 2% (€531.46) to: €27,104.25 

  

	 	•	 	 on 01/01/14 from €27,104.25 by 2% (€542.08) to: €27,646.33  

  

	 	•	 	 on 01/01/15 from €27,646.33 by 2% (€552.93) to: €28,199.26 

  

	 	•	 	 on 01/01/16 from €28,199.26 by 2% (€563.99) to: €28,763.24 

  

	 	•	 	 on 01/01/17 from €28,763.24 by 2% (€575.26) to: €29,338.51. 

 In addition to the net rents shown above, advance payments for ancillary expenses agreed upon in accordance with § 4 clause 3 and the statutory value-added tax are
to be paid. 
  

 10 

 § 6 
 Ancillary Costs 
  

	1.	Additional expenses are all expenses which currently result for the owner or leaseholder due to the ownership or building lease on the real property or through use as agreed of the
building, adjacent building, construction, facilities and plot of land. Performances in kind and services performed by the owner or leaseholder may be valued as the amount which could be valued for an equivalent service by a third party, in
particular a company. 

 Additional expenses comprise, in particular: 
  

	 	•	 	 operating costs listed in the appropriate version of the Operating Costs Ordinance, 

  

	 	•	 	 also, costs of operation, cleaning and care of facades, outer jalousies, and the roof, including gutters, 

  

	 	•	 	 cleaning of community areas, 

  

	 	•	 	 maintenance of green roofs, 

  

	 	•	 	 recyclable material accumulation together with corresponding measuring equipment, including leasing and calibration, 

  

	 	•	 	 operating and cleaning of garage doors, 

  

	 	 •
	 	 operating and cleaning of the air- and ventilation system and sprinkler and other fire control and/or CO2 warning devices, 

  

	 	•	 	 costs of winter service, 

  

	 	•	 	 costs of enforcing security, 

  

	 	•	 	 lighting means for the community areas, including safety checks, 

  

	 	•	 	 operating and cleaning of collective name sign installations and similar constructions, 

  

	 	•	 	 operating and cleaning of parking spaces, including renovation of driving and parking space signs, 

  

	 	•	 	 operating and cleaning of intercom systems, 

  

	 	•	 	 servicing and rental fees for fire alarms as well as costs of checking, charging and replacing hand-held fire extinguishers, 

  

 11 

	 	•	 	 extra cost of emergency service as well as 

  

	 	 •
	 	 costs of partial and full servicing (together with essential, regular replacement materials) and safety checking and, if
necessary, recording of consumption, meter reading costs, as well as calibration fees of all technical devices and constructions (e.g. elevators, conveyors, process control technique, fire extinguishing equipment, constructions for traversing
facades, safety equipment, sanitation, heating (including heat supply appliances, hot water conditioning devices, heat distribution networks, room space heating (radiators), air, climate, ceiling cooling devices and electrical equipment, windows,
doors and gates including rolling door systems, water drainage slides (including rainwater back-pressure reservoirs), gates and parking guide equipment, orientation systems, telecommunications installations, smoke warning and electrical emergency
systems, power current systems, transformers, high-voltage fuses and grounding equipment, emergency call systems, danger reporting and alarm systems, fire detection systems, CO2 warning devices, sprinkler systems and the gate and video installations, the code card system, access control systems, mailbox and bell systems, safety lighting, roof, smoke and heat discharge systems, jalousies and
sun protection installations and 

  

	 	•	 	 the ancillary expenses designated as such further on in this contract. 

 The Lessee shall also be obliged to pay ancillary expenses if he does not make use of the compensated services completely or partially. 
  

	2.	Charging for hot water and heating costs is based upon the appropriate, applicable version of the Heating Costs Ordinance. 

  

	3.	Excepting par. 2, the Lessee shall bear the full amount of the ancillary expenses caused by the leased property. Insofar as ancillary expenses are recorded by measuring devices, the
determination of ancillary costs shall take place primarily by measurement according to consumption. 

  

 12 

	4.	Excepting pars. 2 and 3, the Lessee shall bear the remaining ancillary expenses, in particular the ancillary expenses resulting from the community areas (pursuant to Appendix
3) and technical installations, in ratio of their rental areas as per § 1.1.1 and § 1.1.2 to the total rental area in the property; the key for apportionment of the directly attributable operating costs of the outer parking spaces is
the proportion of Lessees at these spots. 

  

	5.	The Lessor has installed a building management (technical, commercial, and infrastructural). Insofar as the Lessor generates costs therefrom which do not fall under paras. 1 - 4,
the Lessee shall bear these ancillary expenses in proportion to the ratio of his rental areas as per § 1.1.1 and § 1.1.2 to the total rental area, up to a maximum of 3% of the Lessee’s yearly net rent. 

  

	6.	Insofar as costs arise for the Lessor from maintenance and repair and/or necessary cosmetic repairs and installations relating to the community areas (pursuant to Appendix 3)
and installations which do not fall under paras. 1-5, the Lessee shall bear the expenses caused thereby in the ratio of his rental area as per § 1.1.1 and § 1.1.2 to the total rental area, up to a 

 maximum of 5% yearly net rent. 
  

	7.	If the Operating Costs Ordinance is amended, or if ancillary expenses or public fees are newly imposed, subsequently revised or increased, which are connected with the property or
leased property or operation of the Lessee, or ancillary expense or tax-related or miscellaneous public/legal privileges are discontinued, then the Lessor is authorized and obligated for the apportionment and appropriate adjustment of the ancillary
costs. If the Lessor does not have a current property tax assessment, calculations of the probable property tax burden are entered in their place. After presentation of the current property tax assessment, a concluding accounting of the property tax
is undertaken; overpayments and underpayments of the Lessee are balanced. 

  

	8.	The Lessor may change the cost allocation key according to equitable discretion, if necessary, for an appropriate distribution of expenses or for urgent reasons of proper
administration. The Lessor may also form accounting groups which match the type of use (office space, storage areas, garages) within one or several buildings. 

  

 13 

 The Lessor may specify by written statement that the fees and costs listed under section 3 deviating in
the future from the agreement are allocated partially or entirely according to a standard, and the invoice shall contain the measured different consumption or recorded different causation. The statement is only permissible before the beginning of an
accounting time period. 
  

	9.	The Lessor shall render an account of the ancillary expenses every calendar year, at the latest by 12/31 of the following year. If the tenancy ends during an accounting period, the
statement is prepared only within the scope of a general statement; an interim statement does not take place. 

 If the
ancillary expenses already brought to account by the Lessor turn out to be higher than those invoiced, for example due to property tax assessment, then the Lessor is entitled to a corresponding subsequent rebate claim and/or is obligated to a refund
of the over-billed amounts. Balance takes place for the next rent payment due date. 
 The Lessee has to submit objections against the
statement to the Lessor in any case at the latest up to the expiration of the twelfth month after receipt of the statement. After expiration of this term, the Lessee can no longer raise objections, unless the Lessee does not have to defend the
assertion. 
 Upon request, the Lessee may inspect the accounting records of the Lessor. 
  

	10.	The Lessee shall, if possible, conclude a public utility contract in his own name and on his own invoice. This applies in particular for telephone, water, sewage, electricity and
heating. 

  

 14 

 § 7 
 Provision of Security 
  

	1.	The Lessee shall provide security for the settlement of all – also future – claims of the Lessor against the Lessee related to the tenancy agreement including any
subsidiary claims and/or claims for damages on whatever legal ground. The security provision is limited to an amount which is 3 times the initial monthly rent plus the advance payment of ancillary costs and value- added tax. This totals
€109,477.77 (in words: one hundred nine thousand four hundred seventy- seven 77/100). If the total of monthly rent plus the advance payment of ancillary costs and value- added tax varies more than 10%, the contractual parties are entitled to
request an appropriate adjustment of the security provision, which must take place promptly, but at the latest six (6) weeks after entry of an authorized adjustment request. 

  

	2.	The Lessee is allowed to furnish the security by cash payment or in the form of an unrestricted and unconditional bank guaranty payable without requirements at any authorized bank
or savings institution located in the EU or in the Federal Republic of 

 Germany; the right to deposit shall be barred.

  

	3.	The security provision is due at the contract conclusion. The stipulated security provision must be received by the Lessor at the latest 2 (two) weeks before the transfer of
the leased property to the Lessee. The Lessor can refuse the transfer of the leased property as long as no security provision as stipulated is present. 

 A delay of the transfer resulting from this is not to be supported by the Lessor and does not release the Lessee from his contractual obligation for rent payment pursuant to § 4 par. 1. If the Lessee defaults on
providing the security, the Lessor is entitled, after expiration of a reasonable period of grace which he adds, to cancel the contract without notice at any time. The Lessee is liable according to legal provisions for damages which may take place.

 The Lessor shall give back the rent security 6 (six) months after return of the leased property, if and to the extent to which the settled
claims are balanced. 
  

 15 

	4.	As far as the Lessor utilizes the security, the Lessee is obliged to promptly replenish same up to the amount agreed in the contract. 

  

	5.	In case of the sale of the property or leased property, the Lessor is entitled to hand over the cash security and/or guarantee document to the purchaser. Upon request of the Lessor,
the Lessee is required, however, delivery versus payment with respect to the return of the security given by him to the Lessor or its predecessor, to transfer to the purchaser a similar security according to contractual provisions. After return to
the Lessee of the security given by the Lessee to the Lessor or its predecessor, the liability of the Lessor for the return of the security as per §§ 578, 566a, clause 2 BGB expires. 

  

	6.	After acquisition of the leased property by the Lessee, the Lessor can require from the Lessee a common examination of the property introduced by the Lessee as well as a common
protocol thereof, to which extent the property introduced is of free ownership and is not attached or pledged. For a convincing reason, the Lessor can request from the Lessee a repeat of the examination and an updating of the protocol.

 The Lessee is obligated to promptly notify the Lessor of property involving any attachment under report to a bill-collecting
official and of pledged creditors and the type and amount of the claim, for reason of which there is an attachment. For purposes of exercising its right of lien, the Lessor or his third party appointed representative shall be entitled to enter the
rental space alone or in the company of witnesses or experts. 
  

 16 

 § 8 
 Repair, Maintenance and Cosmetic Repairs, 
 Collateral Duties of the Lessee 
  

	1.	The repair and maintenance of the roof and compartments of the property is incumbent upon the Lessor at his own expense. They are 

  

	 	•	 	 the roof construction with covering and associated sheet metal work and gutters including front and side as well as glass rooftops, immobile lighting connections as
well as entrances and exits of the roof, accessible roof surfaces and also 

  

	 	•	 	 the load-bearing parts of the building, such as outer walls, accessible inner walls, supports, columns, foundations, chimneys, cellar and ceiling slabs together
with the façade with exception of the movable façade parts (such as windows, doors, awnings, jalousies) and lastly all supply and waste disposal lines installed in the shell construction up to the exit wall.

 The Lessor is not obligated to undertake cosmetic repairs. 
  

	2.	The Lessor may effect the cosmetic repairs, maintenance and repair work of the community facilities and areas as per Appendix 3 as well as the community technical
installations and facilities outside of the leased property. The Lessee shall proportionately bear the expenses arising from this, within the framework of ancillary expenses, § 6 par. 6. 

  

	3.	Necessary cosmetic repairs, maintenance and repair work inside of the leased property and the servicing, restoration and renovation/replacement purchase of technical installations
(in particular, electrical and sanitary equipment, heating installations, security lighting, escape route pictograms, fire control equipment) which is located in the leased property and is not subject to the security and guaranty, as
well as the windows and doors of the leased property, are incumbent upon the Lessee at his own expense. The cosmetic repairs also include all painting and decoration work and renovation of floor coverings. Servicing and maintenance also includes the
mending of damage to the installation objects for electricity, water and gas, the heating appliances, sanitary equipment, (lines of any kind lying under plaster are excluded), thermostat valves, radiators, window and door locks and strike plates,
roller shutters, roller shutter chords, electrical control of roller shutters, as far as these are accessible to the Lessee. 

  

 17 

 The Lessee is responsible for technical equipment installed by the Lessee himself or at his instance
– and if appropriate, also by the Lessor. 
  

	4.	The Lessee is obligated to maintain the property in proper and clean condition during the lease term. The Lessee has to clear blockages of drains. The Lessee is also liable for any
consequential damages, unless he can prove that he has not caused the blockage. The Lessee shall provide for adequate ventilation and heating of the leased property. 

  

	5.	The Lessee is obligated to promptly declare known defects and damages in the leased property and property overall in writing to the Lessor. 

  

	6.	The Lessee is obligated to use the leased property, as well as the community areas and facilities, such that no unacceptable damages of another user of the Lease Object occur, such
as due to noise, vibrations, odors and the like. No objects may be stored outside of the leased property. 

  

	7.	The Lessor is entitled to draw up house rules, to modify, supplement, or to revoke same, insofar as this is in the interest of a successful coexistence of the user, a proper
management of the property or for preservation and safeguarding of the general security and functional order of the property and is acceptable to the Lessee. The Lessee shall comply with the rules 

 of the house. 
  

	8.	If the business enterprise of the Lessee has the consequence that commercial refuse (in particular, packing material) accumulates on a large scale, the Lessee has to provide for
orderly clearance on his own accord – in particular, with attention to all legal and official provisions. The temporary storage of such waste has to take place, unless there is a deviating written agreement, only in the rental spaces. The
Lessee is not entitled to dispose of large-scale commercial waste and sewage in the refuse container furnished by the Lessor. 

  

 18 

 § 9 
 Liability of Lessor and the Lessee, Assumption of Liability for Premises 
 by the Lessee

  

	1.	The Lessor is liable only for faults. This also applies for initial defects. 

  

	2.	A limitation of liability is not applicable, insofar as the damage is covered by insurance of the Lessor as well as with injuries of life, the body and health.

  

	3.	In case of total or preponderant destruction of the leased property, the Lessor shall decide according to his own judgment whether or not he will reconstruct. The Lessee and the
Lessor are entitled in this case to an immediately effective extraordinary right of cancellation. There shall be no further claims for compensation of damage, except for faults. 

  

	4.	The Lessee assumes liability for the premises inside the leased property as of the handover. 

  

	5.	The Lessee is liable for all damages to the property and/or Lease Object pursuant to the legal stipulations. He is liable also for damages which are caused by his affiliates,
employees, sublessees, visitors, suppliers, tradesmen and the like. 

  

	6.	The burden of proof is incumbent on the Lessee that a damage resulting in his exclusive territory, which in particular is the rental areas according to § 1.1.1 and §
1.1.2, has not been caused by him or the aforementioned persons. 

  

	7.	The Lessee is liable in the same way for contaminations brought into the property and/or Lease Object by himself or the aforementioned persons, also insofar as the bringing in is
not based on the contractually suitable use of the leased property. 

  

 19 

 § 10 
 Surrender of the Leased Property to Third Parties 
  

	1.	The Lessee is not entitled to surrender the property entirely or partially to third parties without prior written permission of the Lessor. The Lessee is obligated to accompany the
request for permission to the Lessor with exact information about the intended user, his trade and credit rating. The Lessor can grant his permission with reasonable restrictions and can, in particular, but not conclusively, also then refuse, if the
surrender to the third party is an obstacle to the interests of the Lessor, or for good cause. Good cause is provided, for example, when the surrender to a third party stands against the option of the Lessor for value-added tax. The Lessor is
entitled at any time to revoke a granted permission for good cause. The right to cancellation of the Lessee under § 540 par. 1 BGB is excluded. 

  

	2.	For companies, a change of owner and/or of an individually liable general manager, the change of majority shareholders, changes of the majority situation, or change of the legal
structure is applicable as a surrender for use in the sense of the above-mentioned regulation. Thus, the Lessee is obligated to promptly supply written notice in advance to the Lessor of such changes as well as of changes of trading authorizations
or other changes relevant to the leased property. The Lessor is entitled to require from the Lessee a reasonable additional security in accordance with regulations in § 7. A reasonable security is as a rule 6 times the monthly rent in addition
to advance payment for ancillary costs and value- added tax, in the relevant amount appropriate to the date of the request for security by the Lessor. 

 If the Lessee sells his operation or a part thereof, the tenancy agreement is transferred to the legal successor of the Lessee only if this was so agreed upon in writing with the Lessor beforehand. 
  

	3.	For the case of subleasing, the Lessee will now assign, by way of security to the acceptive Lessor, claims of the Lessee against the sublessee originating from the subtenancy.

  

 20 

 § 11 
 Structural alterations after handover of the Lease Object 
  

	1.	The Lessor shall be entitled to make structural alterations and technical alterations in and on the property and/or in and on the Lease Object. The Lessee’s consent shall be
required if its interests will be compromised more than to just a minor extent. The Lessee’s consent shall not be required, for example, when technical installations are being modernized for the purpose of, e.g., energy and water conservation.
Any cancellation right of the Lessee under § 554 (3) BGB is precluded. The Lessee shall be required to keep the facilities affected by the structural alterations being made by the Lessor accessible and to tolerate the performance of such
work and not impede or delay it. 

  

	2.	Structural alterations to be made by the Lessee shall require prior written permission from the Lessor. The Lessee shall obtain the approval of the Lessor in due time, submitting
the alterations plan and any mandatory public permits, for which it shall bear the cost and sole responsibility. The Lessor shall then be entitled to refuse its permission, but not only then, when its interests or an important reason conflict with
the structural alteration. 

 That is the case, for example, if the planned alteration encroaches on the statics or the
technical installations of the property or if it could impair its ability to function, restrict future use of the Lease Object or if the structural alteration causes a decrease in the value of the Lease Object or jeopardizes the guarantee claims of
the Lessor against third parties, e.g. general contractors, general subcontractors or other companies responsible for performing the construction contract. The Lessee shall commission the respective construction firms for work in connection with the
technical installations of the Lease Object. 
 Any permission of the Lessor shall always be subject to the mandatory public permits, which
are to be obtained by the Lessee at its own expense and risk prior to beginning the work. If necessary, the Lessor shall assist in the acquisition of any official permits. 
  

 21 

 The official permits are to be submitted to the Lessor prior to beginning the work. The Lessee shall be
required to commission architects and special experts for any required architectural and technical coordination and to announce them to the Lessor in writing before the work is begun. Where technical installations are subject to certification and/or
regular inspection (e.g., by the TÜV [German Technical Inspection Agency]), inspection and testing are to be initiated by the Lessee at its own expense and the performance thereof as well as the results are to be verified to the Lessor. When
the construction measures are being carried out, the interests of the other tenants are to be respected to the greatest extent possible. All costs of the structural alterations (including all official duties) shall be at the expense of the Lessee,
and the Lessee shall be required to provide updated as-built drawings and inspection plans at its own expense and deliver them to the Lessor. 
 The Lessee shall meet the obligation to safeguard the property against hazards where all construction work is concerned. It shall therefore take the necessary precautions to protect third parties in particular. The Lessee releases the
Lessor from any third party claims in connection with the construction work it performs. 
 The Lessee shall be liable for all damages
incurred in connection with the structural alterations it undertakes. 
 § 12 
 Return of the Lease Object 
  

	1.	The Lessee shall be required to return the Lease Object to the Lessor upon expiry of the Lease. 

  

	2.	The Lessor shall not be obligated to take back the Lease Object prior to expiry of the Lease. 

  

	3.	The return shall be required to take place formally in the mutual presence of the Lessee and the Lessor, who may have itself represented by a third party. Lessee and Lessor shall
draw up a joint written report on the condition of the Lease Object upon its return to the Lessor. 

  

 22 

	4.	The obligation of the Lessee to return the Lease Object in pursuance of the contract shall be fulfilled if the following conditions are met: 

  

	4.1.	If all keys and/or code cards, including master key plan and guarantee certificate for the property and the Lease Object that are in the possession of the Lessee or persons under
its responsibility pursuant to this contract are returned to the Lessor. 

  

	4.2.	If the Lessee has concluded all cosmetic repairs and maintenance and repair work, and if all damages for which it is responsible to remedy have been remedied. If at the end of the
lease term cosmetic repairs are entirely or partially not yet due, then the Lessee, if by its own choice it does not carry out the cosmetic repairs anyway, shall be required to compensate the Lessor financially. The compensation shall be calculated
according to the costs based on the cost quote of a technical firm to be determined by the Lessor; of those costs the Lessee shall bear a portion that is commensurate to the wear and tear attributable to it. If there is no need for any renovation at
all, any share in the costs on the part of the Lessee shall be omitted. 

  

	4.3.	If the Lessee has completely vacated the Lease Object. Excepted are furnishings and fittings provided by the Lessor. If the Lease Object with all furnishings and fittings to be left
behind has been cleaned (carpets are to be shampooed) and garbage has been properly disposed of. 

  

	4.4.	If contaminations for which the Lessee is responsible under this contract have been removed. 

  

	4.5.	If furnishings, advertising name and company signs within the meaning of §16 (1) and (2) as well as structural alterations that the Lessee has undertaken prior to or
after handover of the Lease Object or which it has taken over from previous tenants, have been removed and the original condition and/or the original condition as provided by the Lessor has been (re)instated; this shall not apply if the Lessor
requires of the Lessee not to remove the furnishings/structural alterations. In this case the Lessee shall be required to pay the Lessor as compensation for the expenses saved, the amount required for the reconstruction and (re)instatement of the
original condition and/or original condition as provided by the Lessor. 

  

	4.6.	If any cabling (e.g. for telephony systems or IT) in cable ducts/double floors laid by the Lessee itself or on its behalf – as well as by the Lessor, where applicable – or
which it took over from any other previous tenants has been removed at the request of the Lessor. 

  

 23 

	5.	The Lessor shall be allowed to dispose of any objects of the Lessee that are left behind after the Lease Object is returned, as it deems fit and for its benefit, if the Lessee has
not removed them within two weeks after being asked to do so. In this regard the Lessor is exempted from the restriction of §181 BGB. 

  

	6.	If the Lessee has abandoned or handed over the Lease Object to the Lessor prior to expiry of the lease term, the Lessor shall have the right to have work performed in the Lease
Object, such as e.g. renovations for subsequent tenants. 

 § 13 
 Access to the Lease Object by the Lessor 
  

	1.	The Lessor or third parties it authorizes, for example, the financing bank, shall be entitled to enter the Lease Object after prior announcement during regular business hours as
well as any time of the night and day in the event of imminent danger. The Lessee shall be required to guarantee access. In emergencies, the Lessor shall be entitled to allow access to the Lease Object in ways it deems appropriate, in order to gain
entry. 

  

	2.	If one of the contractual parties cancels the Lease, the Lessor or any third party it authorizes shall be entitled to enter the Lease Object alone or with prospective tenants as
well as any necessary experts for the purpose of further leasing the Lease Object. The Lessee shall guarantee access, even beyond regular business hours if necessary. 

  

	3.	Paragraph 2 shall apply mutatis mutandis should the Lessor contemplate selling the property or the Lease Object. 

  

	4.	In the cases set forth in the paragraphs (1) through (3) above, the Lessor shall be entitled to attach “for lease/for sale” signs to the outside of the Lease
Object. 

  

 24 

 § 14 
 Insurance 
  

	1.	The Lessee shall be required to take out the following insurance policies, at its own expense, immediately upon conclusion of this contract: 

  

	1.1.	Third party liability insurance with the following minimum terms/coverage inclusions: 

  

	 	•	 	 Coverage amount for damage to individuals, objects and assets: 1 mil US $ 

  

	 	•	 	 Damage to the property leased: 1 mil US $ 

  

	 	•	 	 Gradual damages 

  

	1.2.	Business interruption insurance: indemnity period: at least 12 months 

  

	 	•	 	 Insured risks analogous to the building insurance (see under §14.2.2 through 14.2.5; without glass, flood, earthquake and volcano eruption, including burglary
by breaking and entering) 

  

	1.3.	Inventory insurance 

  

	 	•	 	 Insured risks analogous to the building insurance (see under §14.2.2 through 14.2.5; without glass, including burglary by breaking and entering)

 The Lessee shall be required to maintain insurance coverage and to pay the premiums when they are due. Any deductibles
shall be borne by the tenant itself (for a list of currently valid deductibles see Addendum 6, List of Insurance Deductibles). The Lessee shall specify the insurers for the Lessor in writing immediately and notify the Lessor of any change or
discontinuation of insurers. 
  

	2.	The Lessor shall take out the following insurance policies, the costs of which shall be allocated as ancillary costs in accordance with §6 (premiums as well as incurred
deductibles in compliance with paragraph 2.3 below): 

  

	2.1.	Property owner’s liability insurance 

  

	2.2.	Building fire insurance 

  

	2.3.	Building extended coverage insurance 

  

	 	•	 	 Civil commotion, strike or blockade, malicious damage 

  

 25 

	 	•	 	 Vehicle impact, smoke, sonic boom 

  

	 	•	 	 Sprinkler leakage 

  

	 	•	 	 Water from pipes 

  

	 	•	 	 Storm 

  

	 	•	 	 Hail 

  

	 	•	 	 Flood 

  

	 	•	 	 Earthquake 

  

	 	•	 	 Sinkhole, landslide 

  

	 	•	 	 Snow load, avalanche 

  

	 	•	 	 Volcano eruption 

  

	2.4.	Building insurance against unnamed risks 

  

	2.5.	Building glass insurance 

  

	2.6.	Insurance on loss of rent (term of liability for loss of rent 24 months) 

 Incurred deductibles from the insurances – including damages to the roof and framework of the property – shall be attributed to the Lessee to the following extent as ancillary costs within the meaning of §6: The Lessee shall
bear the deductibles if and to the extent the insured damages are attributable to its rental sphere. This means, for example: 
 It shall bear the
deductibles 
  

	 	•	 	 entirely, if the insured damage event occurred in its Lease Object or if it was caused by it or persons for which it is responsible under §9 (5);

  

	 	•	 	 proportionately, if and to the extent the insured damage event also occurred in its Lease Object or in the common area or was caused by it or by persons for which
it is responsible under §9 (5); 

  

	 	•	 	 not at all, if the insured damage event occurred outside its Lease Object and the common areas and was not caused by it or persons for which it is responsible under
§9 (5). 

  

	3.	The Lessor reserves the right to take out other insurances, to the extent necessary under the insurance contract, which shall likewise be allocated in the ancillary costs in
pursuance of §6. 

  

 26 

	4.	The Lessee shall be required to communicate any risk-aggravating circumstances of which it is aware, caused in particular by its business and/or its Lease Object. Any changes to the
scope of insurance that become necessary – with neighboring properties as well, where applicable – shall be at the expense of the Lessee. 

  

	5.	The Lessee shall report any substantial damage which occurs on the Lease Object to the Lessor without delay and undertake the exercising of rights (assertion of damage claims and
processing) in consultation with the Lessor. The Lessor shall issue the Lessee all authorizations required for the exercising of rights. The Lessor shall be entitled in singular cases and obligated upon request of the Lessee to exercise rights at
the expense of the Lessee, inasmuch as the Lessee does not undertake the exercise thereof contrary to sentence 1. 

 §
15 
 Change of contractual parties 
  

	1.	The Lessee shall notify the Lessor without delay of any change in the circle of shareholders and/or any change in proprietor and/or of any case of reorganization in the meaning of
the German Companies Reorganization Act and/or of any other change in its legal person/legal form, submitting abstracts from commercial registries and other suitable forms of proof. In the event of any culpable violation of this information
requirement, in departure from the legal rule, the period of time set forth in §22 of the German Companies Reorganization Act shall not begin until the reorganization is entered in the commercial registry and/or a comparable registry, but at
the earliest upon knowledge of the Lessor of the reorganization, and shall extend from six months to two years, but at the longest until expiry of 10 years after entry of the reorganization in the commercial registry and/or a comparable registry.
§10 (2) shall remain in full force. 

  

	2.	In the event of a sale of the property and/or the Lease Object, §566 (2) BGB is precluded. Reference is made to §7 (5). 

  

 27 

	3.	The Lessor shall be entitled to transfer its rights and obligations from this Lease Agreement at any time with discharging effect, even prior to transferring the Lease Object to the
Lessee or prior to conveyance of ownership to the buyer. The Lessee herewith agrees to any such contract takeover by a third party and/or buyer. 

  

	4.	If on the Lessee side several people are one contract party, they shall be jointly and severally liable. By signing this agreement they are mutually authorizing each other
irrevocably to accept or issue all declarations which affect the Lease, in particular the issue and acceptance of a notification to cancel the contract. 

 § 16 
 Advertising, name and company signs 
  

	1.	Inasmuch as any fixtures for advertising, names and company signs exist on the property, the Lessee shall use them and adhere to the existing design with respect to style, execution
and content. The overall appearance of the building must be guaranteed at all times. 

  

	2.	Otherwise, all advertising, name and company signs - even in the windows of the Lease Object – shall require the Lessor’s permission. The Lessor approves the installation
of the Lessee’s corporate logo at its expense and in accordance with Addendum 8 (view of advertising plan; either position B or position C). Any mandatory public permits are to be procured by the Lessee itself at its own expense and risk. Any
special use fees for outdoor advertising that extends into the public road space shall be borne by the Lessee. It shall also bear the legal duty to maintain safety for outdoor advertising it installs and exempts the Lessor in this regard from any
liability and all third-party claims. The maintenance and cleaning of the outdoor advertising installed by the Lessee shall be the responsibility of the Lessee at its own expense and risk. The Lessee is to ensure that the outdoor advertising is
always in a condition that fulfills the technical requirements and that is externally attractive. 

  

 28 

 In the event of any cleaning of the façade to be carried out by the Lessor and/or any renovation
of the façade which becomes necessary, the Lessee shall be required to remove the outdoor advertising it installed, at its own expense. For the reinstallation of the outdoor advertising following any renovation of the façade, the
Lessee shall again require the permission of the Lessor. 
  

	3.	Upon returning to the Lease Object, the Lessee shall be required to remove any installed advertising, name and company signs and to (re)instate the original condition and/or the
condition as originally provided by the Lessor, at its own expense. 

 § 17 
 Early contract termination 
 The Lessor shall be
entitled, in the addition to the existence of the statutory grounds for cancellation, to cancel the Lease without notice for important reasons. Examples of important reasons are: 
  

	1.1.	If despite having given notice two times, the Lessee does not make rental and ancillary cost payments in accordance with the contract or does not provide sureties; §7
(3) shall remain in full force; 

  

	1.2.	If the Lessee uses the Lease Object in a way that breaches the contract, for example, but not only in the case of conveyance of the Lease Object to a third party in violation of the
contract, and the Lessee continues to use the Lease Object in violation of the contract despite being warned; 

  

	1.3.	If the Lessee files for bankruptcy or similar proceedings over its assets or if such proceedings are instituted on the assets of the Lessee or an application for bankruptcy
proceedings is denied due to lack of substance, and after filing the Lessee is in arrears of payment of one or several rental payments to the amount of at least one month’s rent net; 

  

	1.4.	If the Lessee causes the option of the Lessor to charge turnover tax in pursuance of §9 of the German Turnover Tax Act to expire due to reasons inherent to its person or
business activity; this shall not apply if no losses are incurred by the Lessor and the Lessee proves this in the event of any dispute between the Lessee and Lessor. 

  

 29 

 § 18 
 No competition protection 
 The Lessor shall not provide the Lessee any competition protection. In this respect the
Lessee may also not appeal to the competition protection inherent to the contract. In particular, the Lessor provides no guarantee that competitive overlaps with other tenants partially or entirely exist or will arise in the future. 
 § 19 
 Other agreements 

  

	1.	In addition to the Furnishings Specification (Addendum 4), the Lessor shall owe the following other furnishing details: 

  

	 	•	 	 All partitioning wall systems between the offices will receive on both sides one pin panel each with a needled felt surface, Decor FE 2346, light gray with the
following specifications: 

  

	 	•	 	 Planking: wall panel on one side with textile covering, 19 mm pinnable composite element with timber-product base plate held horizontally by aluminum transverse
joint profiles, vertically with ABS edges instead of 19 mm melamine-resin coated triple layer particleboard. 

  

	 	•	 	 Surface: needle-punched covering, in structure and color Decor FE 2346, light gray partially with an acoustic effect in the higher frequency range.

  

	 	•	 	 Width 2,000 mm, height 350 mm. 

  

	 	•	 	 The server rooms on floors 2 – 5 (see Addenda 1b – 1e) will each be equipped with two circulated air coolers, each with 1 KW of output. Should the
Lessee require equipment with a higher circulated air cooling output, the additional costs for the procurement of circulated air cooling equipment shall be borne by the Lessee. 

  

	 	•	 	 On the second floor, the glass area of the first room to the right next to the entrance will be provided with a calendared foil sticker (see Addendum 1 B)

  

	 	•	 	 On the fifth floor, the area to the right next to the pantry will be provided with a calendared foil sticker (see Addendum 7b; Plan of additional special
tenant requests). 

  

 30 

	 	•	 	 In accordance with Addendum 7 (Plan of additional special tenant requests) both the marked hallway walls on the third floor will be equipped with the following
specifications: 

  

	 	•	 	 A room-high full glass element with flush-mounted fecostruct glazing with transverse joint on both sides. 

  

	 	•	 	 Substructure: galvanized rolled steel profiles with regular supports. 

  

	 	•	 	 Connection profile: 1-piece U-shaped rolled steel profiles, powder-coated anthracite. 

  

	 	•	 	 Glazing: soundproof composite safety glass (VSG-Si) 8 mm and ESG 6 mm. Polished edges all around, top light with float instead of ESG glass.

  

	 	•	 	 Glass frame profiles: pressed mitered aluminum glass frames, E6/EV1 anodized, aluminum-colored adhesive in the structural glazing method, visible width of frame +
adhesive 20 mm. 

  

	 	•	 	 Fire protection: no specification 

  

	 	•	 	 Soundproofing: soundproofing test value of fecostruct full glass element Rw, p=47 dB 

  

	 	•	 	 Ceiling blinds: on slab, telescope-type to absorb dimensional tolerances up to +/- 15 mm. 

  

	 	•	 	 Floor connection: mounted on screed or double floor, base height approx. 80 mm 

  

	 	•	 	 Width: 1,350 mm; height: 4,150 mm; height of the transverse joint: 2,500 mm 

 The doors that lead into these spaces as well as the likewise marked connecting doors (see Addendum 7a) will be executed as glass doors with
increased soundproofing. 
  

	 	 •
	 	 To improve room conditions, the Lessor shall install ceiling-mounted circulated air fan coils on the third floor in the
room marked in green in Addendum 7a (approximately 45 m2) (for location see Addendum 7c). They will be provided with plasterboard sheeting with the appropriate ventilation grates for supply and circulating air. The necessary access
panels are installed for maintenance work (e.g. changing filters). The circulated air convectors are dimensioned for an output of 80 W/m2 (at a room
size of 45 m2 this corresponds to a cooling output of 3,600 W). Accordingly, with a room size of 45 m2, three devices will be installed each with 1,200 W of cooling output at 25°C room temperature, 13°C coolant supply temperature
and approx. 36 dB(A) sound level (measured in the middle of the room). The cold water and condensate connection with the pump shall be effected from the cold supply line of the server rooms in the core of the building. The cables run in the floor
zone and are, where architecturally necessary, covered in plasterboard sheeting. 

 After the lease ends, the climate control units
installed will remain the property of the Lessor without compensation; there is no obligation to dismantle them. During the lease term the Lessee shall be responsible for attending to and maintaining/repairing and 
 as necessary replacing the climate control units installed at the request of the Lessee (for more information see also §8 (3)). 
  

 31 

	2.	It should be noted that at the current time there are no fixtures or fittings for acoustic measures (room to room and reverberation) provided, calculated and owed, since such
measures cannot be evaluated, planned and recommended without the furnishings in place, in particular in the middle zones. The Lessee may not derive any defects from this circumstance and may not assert any reduction in rent.

  

	3.	The Lessee shall share in the costs of the upgraded furnishing according to §19 (1) with a one-time additional payment for construction costs of €9,000.00 net. This
contribution will be due with the first rental payment in January 2009. 

  

	4.	The spatial planning on all the floors provides that all rooms border the respective hallway, such that it cannot be cross-ventilated. Since the Lease Object has no mechanical
ventilation, the Lessee shall be required to ensure cross-ventilation by opening the hallway doors as it deems fit. 

  

	5.	Should the Lessee not exercise its option right under §3 (2) and consequently the Lease ends on 12/31/2012, the Lessee shall pay a one-time penalty to the Lessor of
€120,000.00 net, payable by 14 days after the lease ends. 

  

	6.	Several persons as Lessee shall be liable for all obligations from the Lease Agreement as joint and several co-debtors. For a declaration made by the Lessor to be legally valid it
shall suffice for the declaration to be issued to one of the Lessees. Any declarations of intent of a Lessee shall also be binding for the other Lessee(s). 

  

	7.	The Lessee accepts that data which concerns the Lease shall be stored on data carriers within the context of the property management. The Lessor agrees to comply with the
requirements of the Federal Data Protection Act when processing the data. 

  

 32 

	8.	Verbal agreements and any other agreements besides those made in this contract are nonexistent. The contractual partners are aware of the special written form requirements of
§§578, 550, 126 BGB. All changes and amendments to this agreement shall therefore be required to be stipulated in a written addendum. Lessee and Lessor herewith agree to undertake all actions and issue all statements, as requested by the
other contractual partner at any time, that are necessary to satisfy the written form requirements, and not to cancel the Lease Agreement early by claiming noncompliance with the written form requirement. 

  

	9.	Should any provisions of this contract be or become null and void, or should a loophole appear, this shall not affect the validity of the contract. The parties agree to replace any
null or void clause with a legally valid clause that most closely expresses what was economically intended by the contractual parties and that corresponds to the meaning and purpose of the contract. §19 (3) last sentence shall apply
accordingly. 

  

	10.	This contract is subject to German law. 

  

	11.	List of addenda 

  

			
	 Addendum 1a:
	  	Plan of the Lease Object
	 Addendum 1b – 1e:
	  	Tenant Upgrade Plans
	 Addendum 2a:
	  	Plan of the eastern parking spaces
	 Addendum 2b:
	  	Plan of the western parking spaces
	 Addendum 3:
	  	Plan of common areas
	 Addendum 4:
	  	Furnishings Specification
	 Addendum 5:
	  	Sample surety contract
	 Addendum 6:
	  	List of Insurance Deductibles
	 Addendum 7a:
	  	Plan of additional special tenant requests 3rd floor
	 Addendum 7b:
	  	Plan of additional special tenant requests 5th floor
	 Addendum 7c:
	  	Plan of ceiling coffers for cooling system
	 Addendum 8:
	  	View of advertising plan

 These addenda form an integral part of this contract. 
  

 33 

 For the event the Lessee signs before the Lessor, the Lessee herewith declares that it shall be bound to the offer in the
contract to conclude this Lease Agreement by 04/15/2008. 
  

					
	Pullach, 04/11/2008	  		  	Bad Homburg, 04/04/2008
			
	[signature]	  		  	[signature]
	Lessor	  		  	Lessee
	NORBERT FATH        DIRK DITTMANN	  		  	

  

			
	[stamp:]	  	[stamp:]
	 ELINOR Grundstücksgesellschaft mbH
 & Co. Apollo
KG
 Wolfratshauser Strasse 49, 82049 Pullach
 Tel: 089/21104-0,
Fax: 089/21104-210
	  	 [logo]
 Linotype GmbH
 Du-Pont-Strasse 1
 61352 Bad Homburg
 Germany

 [Please note: Please add the first and last names of the signatories as well as their respective function and the
representational authority of the representing party in legible handwriting.] 
  

 34 

 Addendum -1A- to the Lease Agreement with Linotype GmbH 
 [see source] 
  

 Planquadrat 
 Planning and Consulting 
 [see source] 
  

							
		 		  	Server room	  	
				
		 		  	ELT	  	
		 		  	Men’s Toilet    Women’s Toilet	  	
		 		  	PuMi [unexpanded abbreviation]	  	
				
		 		  	TK=Pantry	  	

  

			
	 Bad Homburger Stern
 W.-Reimers-Strasse/Zeppelinstrasse
  
 Building A
 Second floor
  
 Addendum 1 B Tenant Development Plan
 to the Lease Agreement with Linotype GmbH
  
 Scale: 1:100
 Version: 04/10/2008
	  	 Leasing
  
 Hannover Leasing
  
 Hannover Leasing GmbH & Co. KG

 Wolfratshauser Strasse 49
 82049 Pullach
 Tel.: 089-21104 488
 Fax: 089-21104 202

 Planquadrat 
 Planning and Consulting 
 [see source] 
  

							
		 		  	Server room	  	
				
		 		  	ELT	  	
		 		  	Men’s Toilet    Women’s Toilet	  	
		 		  	PuMi [unexpanded abbreviation]	  	
				
		 		  	TK=Pantry	  	

  

			
	 Bad Homburger Stern
 W.-Reimers-Strasse/Zeppelinstrasse
  
 Building A
 Third floor
  
 Addendum 1 C Tenant Development Plan
 to the Lease Agreement with Linotype GmbH
  
 Scale: 1:100
 Version: 04/10/2008
	  	 Leasing
  
 Hannover Leasing
  
 Hannover Leasing GmbH & Co. KG

 Wolfratshauser Strasse 49
 82049 Pullach
 Tel.: 089-21104 488
 Fax: 089-21104 202

 Planquadrat 
 Planning and Consulting 
 [see source] 
  

							
		 		  	Server room	  	
				
		 		  	ELT	  	
		 		  	Men’s Toilet    Women’s Toilet	  	
		 		  	PuMi [unexpanded abbreviation]	  	
				
		 		  	TK=Pantry	  	

  

			
	 Bad Homburg Stern
 W.-Reimers-Strasse/Zeppelinstrasse
  
 Building A
 Fourth floor
  
 Addendum 1 D Tenant Development Plan
 to the Lease Agreement with Linotype GmbH
  
 Scale: 1:100
 Version: 04/10/2008
	  	 Leasing
  
 Hannover Leasing
  
 Hannover Leasing GmbH & Co. KG

 Wolfratshauser Strasse 49
 82049 Pullach
 Tel.: 089-21104 488
 Fax: 089-21104 202

 Planquadrat 
 Planning and Consulting 
 [see source] 
  

							
		 		  	Server room	  	
				
		 		  	ELT	  	
		 		  	Men’s Toilet    Women’s Toilet	  	
		 		  	PuMi [unexpanded abbreviation]	  	
				
		 		  	TK=Pantry	  	

  

			
	 Bad Homburger Stern
 W.-Reimers-Strasse/Zeppelinstrasse
  
 Building A
 Fifth floor
  
 Addendum 1 E Tenant Development Plan
 to the Lease Agreement with Linotype GmbH
  
 Scale: 1:100
 Version: 04/10/2008
	  	 Leasing
  
 Hannover Leasing
  
 Hannover Leasing GmbH & Co. KG

 Wolfratshauser Strasse 49
 82049 Pullach
 Tel.: 089-21104 488
 Fax: 089-21104 202

 Addendum -2A- to the Lease Agreement with Linotype GmbH 
 [see source] 
 [Handwritten:] Addendum 2a to the Lease Agreement

 Passenger vehicle parking space – eastern 
 Wing A 
  

			
	36 parking spaces	  	 Legend
  
 [illegible]
  
 Remarks
  
 [illegible]
  
 Plan D
  
 [illegible]
  
 NEW CONSTRUCTION –
 ADMINISTRATIVE BUILDING
  
 CONSTRUCTION PLAN
 Vertical and outset plan
  

[illegible]

 Addendum -2B- to the Lease Agreement with Linotype GmbH 
 [see source] 
 [handwritten:] Addendum 2b to the Lease Agreement

 Passenger vehicle parking space – western 
 Wing A 
  

			
	53 Parking spaces	  	 Legend
  
 [illegible]
  
 Remarks
  
 [illegible]

 Addendum -3- to the Lease Agreement with Linotype GmbH 
 [see source] 

 Addendum -4- to the Lease Agreement with Linotype GmbH  
  

			
	Construction project:    	  	 Office and Administrative Building
 Zeppelinstrasse/Werner-Reimers-Strasse, Bad Homburg
  
 BUILDING AND FURNISHINGS
SPECIFICATION
 FOR RENTAL AREA WING A Version: 10/25/2007

 TENANT CONSTRUCTION SPECIFICATION 
 Rental Area Wing A 
 OFFICE AND ADMINISTRATIVE BUILDING 
 WERNER-REIMERS-STRASSE 
 BAD HOMBURG

  

			
	                        Lessor:    	  	 G & P Grundstücksentwicklungs-
 gesellschaft GmbH & Co. Apollo KG
 Frankfurter Strasse 1-5
 65760 Eschborn

			
	Construction project:	  	 Office and Administrative Building
 Zeppelinstrasse/Werner-Reimers-Strasse, Bad Homburg
  
 BUILDING AND EQUIPMENT
SPECIFICATION FOR LEASE AREA WING A Version of 10/25/2007

 GENERAL SPECIFICATIONS 
 Preliminary remarks 
 The construction site is located at the Büro- und Gewerbepark Mitte [office and commercial
park] in Bad Homburg at the corner of Zeppelinstrasse and Werner-Reimers-Strasse. 
 An office building with outside parking spaces will be erected on the
property. The building complex consists of a semicircular structure with six adjoining wings with high-quality office spaces. A large part of the building is used by its main tenant Lilly Pharma Holding GmbH. 
 Access to the building for development is through the front square at the main entrance on the planned Werner-Reimers-Strasse. The entrance and exit to the parking lots
is via the planned Werner-Reimers-Strasse, along the northern border of the property. 
 Planning and project data 
 The parcel of land: 
 Lot 21, land parcels 295 and 308, plot A (office
building section) approx. 11,193 m2. 
 Height between floors 
  

			
	Basement/cellar	  	 Approx. 2.65 m of clearance height, less conduits
 Separate areas as per technical requirements.

		
	Ground floor	  	 Approx. 4.15 m of clearance height up to bottom of reinforced concrete floor
  

	Floors 2-5	  	Approx. 3.00 m of clearance height up to bottom of reinforced concrete floor

 The aforementioned plan specifications are subject to change and adjustment throughout the course of the planning.

 Preparations for the measuring and metering (adapters and components) of the consumption units are being held off. Metering equipment, humidification
meters, water pipes, etc. will be provided and installed as rental or leasing equipment by the building’s management. 
 Material changes and changes in
design may be made within the scope of the planning and execution. 
 1. STRUCTURAL WORK 
 The Lessee shall be responsible for all digging work that is needed for the building pit, rough and fine leveling work, re-densification of the foundation levels, drainage canal work and other building construction
measures. 
 The load-bearing structures of the building as well as the ascending floors, stairwells and elevator shafts will be executed both in in-situ
concrete as well as mixed construction with masonry and precast concrete parts. In subunits, steel constructions may be used in the area of the entry hall (roof and/or façades). 

			
	Construction project:	  	 Office and Administrative Building
 Zeppelinstrasse/Werner-Reimers-Strasse, Bad Homburg
  
 BUILDING AND EQUIPMENT
SPECIFICATION FOR LEASE AREA WING A Version of 10/25/2007

 Load assumptions 
  

					
	Ceiling over the basement floor and/or the floor on the ground floor            	  	10.00 kN/m2	  	
	Floor slabs in the office area	  	5.00 kN/m2	  	

 2. ROOF AND FAÇADES 
 2.1 Roofing and weatherstripping work 
 The flat-roof roofing will be executed following the guidelines for the
planning and execution of roofs with sealings (flat-roof guidelines, DIN 4108, Section 3, DIN 18195 and other applicable DIN norms, guidelines and manufacturer’s installation instructions). 
 2.2 Façades, façade facings and design 
 This
façades of the individual building units will be given generously proportioned window elements that will be arranged as a ribbon façade or in subzones as a perforated façade within the façade as well. The closed
façade areas will be done in a natural stone covering in front of the solid building elements in the design concept of the architect. 
 The
individual windows will be given mostly two- and four-axial window and façade elements, some with sub-light and pivot/hung elements as well as fixed glazing according to specification. Each window element is provided with fixed glazing
interchanging with openable pivot/hung windows. The ground floor entrance to lease area Wing A is equipped with double doors. 
 2.3 Sun protection and
glare shields 
 All façade window elements will be equipped with exterior sun protection, except in the areas of the main entrance and stairwell.
The sun protection is planned as light metal louvers with rope guide and cambered lamellas. 
 All visible parts of the sun blinders will be powder-coated,
in a RAL color, following the architect’s specifications. They are controlled centrally with individual operating panel and overriding sun protection and wind monitors oriented to the building wings and façades. 
 2.4 Exterior and interior metalwork 
 Guardrails for ramps,
staircases, terraces and other areas where there is a danger of falling will be done in galvanized metal; the guard rail height, element partitioning and infill will be done according to the plan. 
 All staircases will be equipped with a guardrail according to specification on all floors, consisting of a V2A handrail on offset, double flat iron bars, which will at
the same time form the posts for the handrail infills. The infill rods of the guardrails are also made of flat steel. 

			
	Construction project:	  	 Office and Administrative Building
 Zeppelinstrasse/Werner-Reimers-Strasse, Bad Homburg
  
 BUILDING AND EQUIPMENT
SPECIFICATION FOR LEASE AREA WING A Version of 10/25/2007

 3. INTERIOR WORK 
 3.1 Ceiling and wall coverings 
 Office spaces 
 The office spaces will not be given suspended ceilings. The ceiling surfaces will be primed for absorbing the surface coating system. 
 Sanitary
facilities 
 A plasterboard ceiling liner that is ready-to-paint according to specification and primed for paint is to be custom-made in the sanitary
facilities on all floors. The bathroom stalls will be given a reversible, metal coffered ceiling. 
 Areas in front of elevators 
 The elevators and lease space anterooms will not be given suspended ceilings. The ceiling surfaces will be primed for absorbing the surface coating system. These areas
will be illuminated by ceiling lights, according to the architectural concept. 
 Entrance area 
 The entrance area on the ground floor will not be given suspended ceilings. The ceiling surfaces will be primed for absorbing the surface coating system. 
 Partitioning walls 
 A flexible partitioning wall system for hallway
and office partitioning walls within the leased units will be provided for the office areas. A partitioning wall system by the company Feederle will be used. 
 The partitioning wall system will stand on the hollow floor and will extend up to below the smoothed reinforced concrete ceiling. 
 Hallway
walls: 
 The hallway walls in the office areas will be executed as one-sided glazed glass
elements, with no fire rating. The glass pane will be adhered to an aluminum frame in a high-quality structural glazing process. The soundproofing test value of the walls is Rw.p. = 32 dB. The glass elements will be mounted on the standard floors as floor-to-ceiling elements approx. 1.35 m wide. On the ground floor, the elements will be executed with an additional transverse joint at 2.50 m on
account of the high room height. The glass partitioning walls will be provided with a sight marking at eye level consisting of adhered, calendared foil. 
 At the special request of the tenant, the glass partitioning wall system of the hallway walls can also be done in certain areas with increased soundproofing in a double-glazed design. 
 Office partitioning walls: 
 The partitioning walls between the
individual offices will be executed as solid walls with an element width of approx. 1 m and a fitting piece to the façade. 

			
	Construction project:	  	 Office and Administrative Building
 Zeppelinstrasse/Werner-Reimers-Strasse, Bad Homburg
  
 BUILDING AND EQUIPMENT
SPECIFICATION FOR LEASE AREA WING A Version of 10/25/2007

 The soundproofing test value will be Rw.p. = 47 dB. The surface of the solid walls consists of a melamine resin coating in the standard color of the manufacturer. On the ground floor, in the same way
as the glass partitioning walls, an additional horizontal transverse joint will be put in at a height of 2.50 m on account of the high room height. For the standard design a method of 0.4 m2 of office partitioning wall system/m2 of leased office space is planned. 
 Door elements:

 As a rule, an open office structure without doors will be assumed. Individual rooms, such as
e.g. for department managers, etc., will be furnished with doors that will be 1.35 m wide and consist of a one-sided glazed solid glass door (soundproof value of the door leaf Rw.p.
= 32 dB with a glass side section (width approx. 35 cm). On the standard floors the door will be room-high; 2.50 m high on the ground floor. 1 glass door per 50 m2 of leased office space.

 Metal stud walls 
 The non-load-bearing space-partitioning for hallways, pantries, other rooms and interior meeting rooms on the ascending floors will be done by means of 10 cm-thick, double paneled metal stud walls. (Rw.p. = 42 dB). If necessary, in F30 or F90 execution, as per the building permit. 
 In wet rooms the metal stud walls will be executed waterproofed with a thickness of 100 and 150 mm depending on the installation. The paneling will be in part with waterproofed plasterboard panels and/or wet room
panels. 
 3.2 Plastering and smoothing work 
 Reinforced
concrete sections will be smoothed ready-to-paint as necessary. The stud walls/plasterboard panels and wet room planks will receive a ready-to-paint surface. 
 The soffits of the visible reinforced concrete ceilings (without suspended ceiling construction) from the ground floor to the fifth floor (offices and hallways as well as pantries) will be given a ready-to-paint spackling as necessary.

 Masonry walls in the cellar will be executed plastered with coated joints in parts. 
 Entrance area 
 The interior walls of the entry hall will be given a single-layered thin plasterboard finish or a
ready-to-paint spackling with a coat of paint as required. 
 3.3 Screeding, hollow floor and double floor 
 Screed 
 The floorage that is not given a hollow floor with a double
floor section will be provided with a floating cement screed on the upper floors, ancillary rooms, in front of the elevators, the sanitary facilities and entrance area – as a base for tiles, carpeting or a natural or artificial stone flooring:

			
	Construction project:	  	 Office and Administrative Building
 Zeppelinstrasse/Werner-Reimers-Strasse, Bad Homburg
  
 BUILDING AND EQUIPMENT
SPECIFICATION FOR LEASE AREA WING A Version of 10/25/2007

 Hollow floor 
 The office spaces in the office building sections from the ground floor to the fifth floor will receive a hollow floor (total structure height approx. 16 cm, clearance height approx. 9 cm). 
 The offices on all floors (the ground floor to the fifth floor), always parallel to the façade axis, will be given a strip of double floor, width = 60 cm, the
full length of the room. 
 The double floor strip will be executed at a distance approx. 0.60 cm (double floor axis) along the window fronts as a single row
line, to serve the workstations. 
 The slot will be used for installation and development of areas of the office spaces and leased spaces that have a hollow
floor. 
 The overall structural height of the double floor of the office levels is approx. 16 cm and/or equal to the hollow floor. The clearance height in
this area is approx. 10 cm. 
 The double floor on the IT room floors is the same height and has the same load capacity as the double floor in the office
areas. 
 The flooring construction has the following bearing capacities: 
  

					
	Point load	  	approx. 3 kN (inherent to the system)	  	
	Distributed load            	  	approx. 5 kN/m2 (inherent to the system)	  	

 Openings for floor boxes 
 Borings for multiple socket connections (diameter of 30 cm) will be created in the double floors and/or double floor strip, according to specification of the technician supervisor. 
 One floor box is planned for every two window axes. 
 3.4 Natural stone
and artificial stonework 
 Natural stone panels in mortarboard are to be laid on the existing screed in the entrance area and in the area of the elevator
on the ground floor according to specification. Material: Verda Fontaine granite 
 The floors of the elevator cabins will be given the same natural stone
facing as the foyer area. 
 Artificial stone slabs as described above are to be professionally laid in the closed stairwells, according to plan
specification, on existing in-situ cement surfaces, but the slabs are to be adapted to the respective solid center widths and step widths. 
 3.5 Tile and
slab work 
 Tile floor coverings in the sanitary facilities and other wet spaces 
 A waterproof seal with a permitted system is to be installed on the existing cement screed (according to manufacturer specification, e.g. Deitermann). 

			
	Construction project:	  	 Office and Administrative Building
 Zeppelinstrasse/Werner-Reimers-Strasse, Bad Homburg
  
 BUILDING AND EQUIPMENT
SPECIFICATION FOR LEASE AREA WING A Version of 10/25/2007

 Material: V & B ceramic tiles, dark gray, Pro Architectura type, plate size 15/15 
 The wall joints are to be caulked forming a permanent elastic seal (silicon). 
 Ceramic wall/tiling in the sanitary facilities 
 In all sanitary facilities the walls to which sanitary objects are mounted (wash sinks,
toilets, urinals) will be furnished with ceramic wall coverings. The remaining wall space will be given a dispersion coat. 
 Material: V & B ceramic
tiles, dark gray, Pro Architectura type. 
 Plate size: 15 cm x 15 cm 
 3.6 Paintwork 
 Ceiling surfaces on the ground floor and on the upper floors as well as all visible areas in the stairwells

 All visible ceiling surfaces including coffers and offsets in the ceiling area as well as reinforced concrete and plasterboard ceilings on the ground
floor and on the upper floors will be given a coat of dispersion paint; color according to samples. 
 Ceiling surfaces on the basement floors

 All visible reinforced concrete ceiling surfaces will be given a coat of paint according to the plan specification. 
 Wall surfaces on the ground floor and the upper floors 
 All visible,
plastered or primed wall and support areas on the ground floor and the upper floors will be given a coat of dispersion paint as per plan specification; color according to samples. 
 Wall surfaces on the basement floors 
 All visible, solid walls, as well as the walls and supports on the basement
floors, will be given an undercoat and a topcoat of dispersion paint. 
 All steel doors, primed steel parts on all guard rails (e.g. in the stairwells),
steel supports, and frames of the wooden door leaves will be given a primer coat and a topcoat of synthetic enamel. 
 The floors in the technology rooms on
the basement floors will be provided according to plan specification with an abrasion-proof coating (according to manufacturer specification). It is to be painted 10 cm high on all walls as a base coat. 
 3.7 Floor coverings (textile and linoleum floor coverings) 
 All facilities from the ground floor to the fifth floor that are not given tile, natural stone, artificial stone, or linoleum coverings or coatings, will be laid with a carpet in the office zone. 

			
	Construction project:	  	 Office and Administrative Building
 Zeppelinstrasse/Werner-Reimers-Strasse, Bad Homburg
  
 BUILDING AND EQUIPMENT
SPECIFICATION FOR LEASE AREA WING A Version of 10/25/2007

 The necessary, professional subsurface pretreatment of the screed, hollow floor and double floor surfaces must be
done before the textile floor covering work is done. 
 Rolls of carpet (25 euros per m2 material price according to the gross pricelist including VAT tax of the manufacturer) are to be adhered in the office spaces according to the plan
specification. 
 Make: Dura 
 Type: Objekt Line 
 Color based on color selection of the manufacturer 
 The multiple socket
connection covers are to be adhered with the same material after they are installed. The rooms and hallways will be given a bound-edge skirting all around with the corresponding carpeting. 
 Linoleum flooring 
 According to the plan specifications, linoleum
sheeting is to be laid in the pantries with a suitable adhesive on the existing cement screed and/or hollow floor. 
 Make: DLW 
 Type: Marmorette, color: Lobster Red 
 The rooms will receive plastic
plinths, color: black 
 3.8 Cabinetry/doors and door fittings 
 The room doors in solid walls and in plasterboard/metal stud walls without fire rating, e.g. for sanitary facilities and other spaces, will be executed as wooden doors with color melamine coating with a steel enclosure frame for various
wall strengths, taking into account the wall coverings. Doors with fire rating will be done in the same way, according to the building permit requirements. 
 The size of all entrance doors will be coordinated to a raw state dimension of 1.01 m x 2.26 m or 0.885 m x 2.26 m respectively. All bathroom stall doors are to be coordinated to a raw state dimension of 0.76 m x 2.26 m or 0.635 m x 2.26 m
respectively. 
 Make: Westag & Getalit or similar quality 
 Stainless steel door handles are planned as fittings: by FSB with round rosette. 
 The bathroom stall doors will be given fittings with a
free/occupied display. 
 Entrance doors to the sanitary facilities 
 Door systems as described above, but with top-mounted door closer. 
 Locking system 
 The building will be given a locking system (GHS locking system). All entrance doors as well as the doors to common areas will be provided with profile cylinder locks by
the Lessor. 

			
	Construction project:	  	 Office and Administrative Building
 Zeppelinstrasse/Werner-Reimers-Strasse, Bad Homburg
  
 BUILDING AND EQUIPMENT
SPECIFICATION FOR LEASE AREA WING A Version of 10/25/2007

 Preliminary setup for access control: 
 All lease area entrance doors are to be equipped with preliminary equipment for door openers, magnetic contacts as well as the corresponding empty ductwork up to the floor structure. 
 3.9 Special installations 
 Pantries 
 The pantries will be given a kitchenette, in white, approx. 2.40 m long, with refrigerator and dishwasher, a floor cupboard with drawer, a cabinet below the sink with
garbage collector, a full-length countertop as well as wall cupboards. Over the countertop the back wall will be covered with the same material as the countertop. 
 Mailbox unit 
 A freestanding mailbox unit with integrated doorbell panel (by Siedle or of similar quality) is to be supplied and installed
for the entire property. 
 4. TECHNICAL CONSTRUCTION HEATING/VENTILATION/SANITARY FACILITIES 
 4.1 Heating system 
 Bases of calculation 
 The heat requirement is calculated according to DIN EN 12831. 
 The following
was determined as room temperature (winter): 
  

							
	 •     Offices and lounges
	 		 		  	
	 (according to workplace guidelines):
	 	+20°C	 		  	
				
	 •     Sanitary facilities, pantries:
	 	+20°C	 		  	
				
	 •     Stairwells, hallways:
	 	+20°C	 		  	

 A closed split-system pump hot water heating system according to DIN 4751, Section 2 and/or the supplementary
guidelines is planned for the heating. 
 The power supply will be gas. Heat will be provided by a double boiler installation. The main heating system will
be housed in the basement. 
 Heating surfaces 
 The
heating services will be located under the window elements. Smooth, flat heating elements will be provided as heating elements. The heating surfaces will be configured such that it will be possible to move the office partition walls (one heating
element per window axis). 
 Tubular radiators will be provided in the hallways and stairwells. 

			
	Construction project:	  	 Office and Administrative Building
 Zeppelinstrasse/Werner-Reimers-Strasse, Bad Homburg
  
 BUILDING AND EQUIPMENT
SPECIFICATION FOR LEASE AREA WING A Version of 10/25/2007

 Wash water heating 
 The provision of hot water will occur locally. 
 Depressurized 5-liter reservoirs will be installed in the sanitary anterooms and pantries to
supply the various sinks. 
 4.2 Sanitary facilities 
 Furnishings and fittings 
 The leased spaces will be given ample, appropriate sanitary fittings and furnishings for men and women. Brand name
sanitary furnishings and fittings will be installed (Duravit and/or Keramag, white). 
  

			
	Washstands:	  	Porcelain wash stands with natural stone surface with a large mirror, soap dispenser and mixing tap for one hand operation, by Dornbracht or similar quality.
		
	Toilets:	  	Wall-hung toilets made of sanitary porcelain with wall-installed toilet tank.
		
	Urinals:	  	Porcelain sinks with masked in- and outflow, with automatic in-wall approach rinsing and infrared flush activation.
		
	Sinks:	  	For cleaning purposes with a bucket grate and hot water supply (electrical hot water reservoir) with mixed tap.

 4.3 Ventilation system 
 General 
 The planning and execution of the below ventilation systems will follow the valid DIN norms, guidelines and regulations. Mechanical
ventilation of the office areas is not planned. 
 Basement rooms 
 The inner basement and storage rooms will get air exhaust systems for simple, hourly air renewal in the rooms. 
 Sanitary facilities and
pantries as well as interior-lying rooms 
 Sanitary facilities and pantries as well as interior-lying rooms (IT distributor room, etc.) will be given an
air exhaust system. The individual ventilators will be located on the roof of the respective building units or in the rooms and will be controlled by means of switch timers. The air supply will come through a door undercut (1.5 cm - 2.0 cm) or front
wall-fire protection elements, as per building code requirements. Telephony sound absorbers will be installed if necessary. 

			
	Construction project:	  	 Office and Administrative Building
 Zeppelinstrasse/Werner-Reimers-Strasse, Bad Homburg
  
 BUILDING AND EQUIPMENT
SPECIFICATION FOR LEASE AREA WING A Version of 10/25/2007

 4.4 Cooling system 
 General: 
 Cement core activation is planned in all office units that adjoin the core zones as well as the respective meeting room that
adjoins the gallery. 
 No guarantee is assumed on the part of the lessor that at an outside temperature of 32°C and above the existing sun protection
and the intended backup cool system will reach a certain room temperature, e.g. 6°C below the outside temperature. Should the tenant deem further air-conditioning measures necessary besides those provided in this building specification on
account of the specific location and use of the leased property or individual spaces, then the tenant shall be free to plan suitable air-conditioning measures (cooling equipment) and install it or have it installed at its expense. 
 Basic system for cooling the office spaces of the respective building sections 
 As part of the standard outfitting, cooling registers, similar to an under-floor heating system, will be installed
as an area cooling system in the cement floors of the office spaces, through which cold water will flow during summer operation such that the floors can be cooled to a surface temperature of approx. 19°C-22°C. This will create the ideal
cooling effect for a building. Such a cooling of the active cooling surface can be realized from approx. 40 watts/m2. 
 5. TECHNICAL CONSTRUCTION 
 ELECTRICAL SYSTEMS/HIGH AND LOW VOLTAGE

 The technical and electrical development, the connections and the type of media will be carried out in coordination with the utilities and waste
management companies and according to official requirements. 
 5.1 Electrical systems 
 Development/energy supply (electricity) 
 The construction project will be supplied by means of the medium
voltage network of the respective utility company. The station is planned for outside the building. 
 The low-voltage main distributor including the
low-voltage metering equipment will be located in a separate electrical room in the basement. The distributors on the floors and the general power supply will be supplied by the low-voltage main distributor. The current version of the TAB [Technical
Connection Conditions] will be adhered to. 
 General installation, office area 
 Beginning from the distributors on the floors, the wires for high and low voltage will be laid on cable tracks and partially in the double or hollow floor space. All wires that are required for the floorboard
connection outlets in the office spaces will be laid in the double or hollow floor. 

			
	Construction project:	  	 Office and Administrative Building
 Zeppelinstrasse/Werner-Reimers-Strasse, Bad Homburg
  
 BUILDING AND EQUIPMENT
SPECIFICATION FOR LEASE AREA WING A
 Version of 10/25/2007

 The supply wires for the hallway lighting as well as low-voltage wires for alarms, etc. will be laid in the
ceiling areas. 
 When equipping with floor lamps the installation will be done in the hollow floor. 
 The floor lamp illumination in the office areas will be switched on locally on the lamp and/or by means of motion detection on the lamp (by Schmitz, factory type).

 A hollow floor with double floor strips is planned in the office spaces, in the floorboard connection sockets (Ackermann or similar quality) a floor box
will be installed every two window axes (2*1.35 m). 
 The floorboard connection sockets are built for the following mountings: 
  

	 	•	 	 two white socket outlets with grounding contact 

  

	 	•	 	 two orange socket outlets with grounding contact (prepared for USV buffer for the tenant side) 

  

	 	•	 	 two IT double sockets RJ 45 for data and communication technology (4 ports) 

 The installation of the technical rooms and similar-quality ancillary rooms will be done “on-wall”. 
 IT wiring

 The Lessor will provide the complete passive network as structured IT wiring, consisting of IT cables, connection sockets and patch panels. The passive
network will be executed based on EN 50173 as well as the norm for the class D system contained therein. 
 The distributor rooms (FD rooms) of the floors
will be provided in the core areas, one for each wing. Two (2) 19” system distribution cabinets (SVS, 800 mm x 800 mm, 42 HE, ventilators, including patching panel horizontally and vertically with outlet strip) will be built in the FD
room. 
 The patch fields and data ports will be executed as Class D components. 
 The wiring of the workspaces will be done using a cable of the Cat. 7 type. 
 Two (2) double data ports (4 ports) are
planned for each floor box. 
 The active components and patch cables will be planned, supplied, installed and connected operation-ready by the tenant.

 Lighting systems 
 The lighting will be built in
accordance with the valid requirements; in this case: DIN 5035, DIN EN 12464, BGVR [Regulatory Database of the German Professional and Trade Association]. All lights will be equipped with electronic ballasts. 
 The following illumination levels are planned for the individual room types: 
  

					
	 •     
	  	Hallway:	  	150 lux
			
	 •     
	  	Core area, sanitary facilities, etc.	  	150 lux

  

			
	Construction project:	  	 Office and Administrative Building
 Zeppelinstrasse/Werner-Reimers-Strasse, Bad Homburg
  
 BUILDING AND EQUIPMENT
SPECIFICATION FOR LEASE AREA WING A Version of 10/25/2007

  

					
		  	 •        Utility rooms:
	  	150 lux
			
		  	 •        Office spaces (workspaces):
	  	500 lux
			
		  	 •        Traffic areas:
	  	200-300 lux
			
		  	 •        Stairwells:
	  	100 lux

 The following lighting fixtures are planned for the respective areas of use: 
  

			
	Office areas:	  	 Floor lamps for workspace illumination at a spatial depth of 4.05 m indirect/direct (basic workspace illumination 500 lux).
  
 In the interior zones of the office wings and meeting areas, illumination will be by means of
suspended lamps, Schmitz, Tendo type and/or [            ].

		
	Hallways:	  	Round, surface-mounted downlights, based on the ceiling structure, by Fagenhalt.
		
	Entrance area:	  	Decorative surface-mounted lights, Schmitz clean.
		
	Sanitary facilities and
anterooms:	  	Built-in downlights, by Fagenhalt
		
	Pantries:	  	Surface mounted downlights, by Fagenhalt
		
	Stairwells:	  	Ceiling-mounted lights and wall-mounted lights and/or downlights, ASL type
		
	Emergency lights:	  	Safety signs in the emergency routes (glass pictograms)

 5.2 Low-voltage technology 
 Fire alarm system 
 Where necessary, the building will be equipped with a fire alarm system that complies with the
official requirements of the building permit. The initial set of extinguishers will be installed by the lessor. 
 Alarm installation: 
 The building will be given an alarm installation for fire emergencies that complies with official codes. 
 5. TRANSPORT TECHNOLOGY/ELEVATOR SYSTEMS 
 For the vertical transport of passengers and loads, there is an elevator
available with no machine room in the lease area Wing A that has a lifting capacity of 1,000 kg = 13 passengers for passenger transport (by Thyssen) in accordance with DIN EN 81. 
 A communications terminal for voice communication (emergencies) will be installed in the telephone system in the elevator cabins. 

			
	Construction project:	  	 Office and Administrative Building
 Zeppelinstrasse/Werner-Reimers-Strasse, Bad Homburg
  
 BUILDING AND EQUIPMENT
SPECIFICATION FOR LEASE AREA WING A Version of 10/25/2007

 7. EXTERIOR FACILITIES 
 The landscaping work is to be carried out in accordance with DIN 18320. The building will be constructed adapted to the planned site level and/or adapted to the site requirements. 
 The green spaces will be organized into lawn areas and plantings following the outdoor installations plans. 
 Parking spaces 
 Access road areas will be asphalted. The parking
areas will be done with grass pavers. The final design will result from the planning as well as from consultations with the City of Bad Homburg. 
 Illumination of exterior facilities 
 A variety of lights, such as mast lights, in-ground lights and bollard lights are planned for
illuminating and accentuating the exterior facilities, by we-ef. 

 Addendum -5- to the Lease Agreement with Linotype GmbH 
 Contract of Surety 
 -The Lessee-

 has entered into a Lease Agreement dated
                     with 
 ELINOR Grundstücksgesellschaft mbH & Co. Apollo KG, Pullach 
 -the Lessor- 
 concerning the lease object Wing A, floors 1-5, at the property “Bad Homburger Stern”, Zeppelinstrasse/Werner-Reimers-Strasse 2-4 in 61352 Bad Homburg v.d.H.

 Under the terms of the Agreement, the Lessee must provide the Lessor with a surety for the rent to the amount of
                    . The purpose of the surety is to guarantee all – even future and conditional – claims of the Lessor against the
Lessee from the Lease Agreement including any incidental claims and/or damage compensation claims no matter what the legal cause, even statutory cause. 
 That having been said, we 
                                       
                                   
 (name and address of the guarantor) 
 herewith assume for the Lessee
irrevocable joint and several surety for the aforementioned claims up to a total amount of €                      (in words:
                     euros) against the Lessor. 
 We herewith waive the defenses of offset and voidability under § 770 BGB [Civil Code] as well as the defense of failure to pursue remedies under § 771 BGB. The waiver of the defense of offset under § 770 (2) BGB shall
not apply if the counterclaim is undisputed or has been legally established. This surety shall likewise guarantee expired claims of the Lessor from the Lease Agreement against the Lessee for up to ten (10) years after the surety claim comes
about. 
 Page 1 of 2 

 Release through depositation of the surety amount is precluded. We can only be drawn upon from this surety for payment of
money. The surety is indefinite. It shall expire upon return of this deed. German law applies hereunto. 
 Jurisdiction shall be the town where the lease
object is located. 

	
	  

	 Place, date

	
	  

	 N.N. (Guarantor)

 Page 2 of 2 
  

 Addendum -6- to the Lease Agreement with Linotype GmbH 
  

			
	Addendum to the offer	  	Hannover Leasing
	Insured risks, indemnity limits, deductibles	  	

  

					
	 [illegible]
	  	01/01/2008	  	ELINOR Grundstücksgesellschaft mbH & Co. Apollo KG

  

									
	 Risk
	  	Insured	  	Annual
indemnity
limit	 	Deductible
	 	  	yes	  	no	  	 	 	 
	 Fire
	  		  		  	none	 	
	 EC – a) Civil commotions, strike, blockade, malicious damage
	  	x	  		  	[see source for
figures]	 	
	 EC – b) Vehicle [illegible], smoke, sonic boom
	  	x	  		  	none	 	
	 EC – c) Emission of extinguishing media
	  	x	  		  	none	 	
	 EC – d) Water from pipes
	  	x	  		  	none	 	
	 EC – e) – f) Storm / [illegible]
	  	x	  		  		 	
	 EC – g) Flood
	  	x	  		  		 	
	 EC – h) Earthquake
	  	x	  		  		 	
	 EC – i) Sinkhole, landslide
	  	x	  		  		 	
	 EC – j) Snow load, avalanche
	  	x	  		  		 	
	 EC – k) Volcanic eruption, landslide
	  	x	  		  		 	
	 Unnamed risks
	  	x	  		  		 	
	 Graffiti damages
	  	x	  		  		 	
	 Glazing insurance for the common or entire glazing of the building
	  	x	  		  	none	 	

 Premium-free rental loss/lease fee loss insurance has been included against the risks insured in the property
insurance. Agreed period of liability 24 months. 
 The annual indemnification limits are combined for the property and rental insurance. 
  

 Planquadrat 
 Planning and Consulting 
 [see source] 
  

							
		 		  	Server room	  	
				
		 		  	ELT	  	
		 		  	Men’s Toilet    Women’s Toilet	  	
		 		  	PuMi [unexpanded abbreviation]	  	
				
		 		  	TK=Pantry	  	

  

			
	 Bad Homburger Stern
 W.-Reimers-Strasse/Zeppelinstrasse
  
 Building A
 Third floor
  
 Addendum 7a: Layout plan of the additional
 special tenant requests - 3rd floor
 to the Lease Agreement with Linotype GmbH
	  	 Leasing
  
 Hannover Leasing
  
 Hannover Leasing GmbH & Co. KG

 Wolfratshauser Strasse 49
 82049 Pullach
 Tel.: 089-21104 488
 Fax: 089-21104 202

 Planquadrat 
 Planning and Consulting 
 [see source] 
  

							
		 		  	Server room	  	
				
		 		  	ELT	  	
		 		  	Men’s Toilet    Women’s Toilet	  	
		 		  	PuMi [unexpanded abbreviation]	  	
				
		 		  	TK=Pantry	  	

  

			
	 Bad Homburger Stern
 W.-Reimers-Strasse/Zeppelinstrasse
  
 Building A
 Fifth floor
  
 Addendum 7b: Layout plan of the additional
 special tenant requests – fifth floor
 to the Lease Agreement with Linotype GmbH
	  	 Leasing
  
 Hannover Leasing
  
 Hannover Leasing GmbH & Co. KG

 Wolfratshauser Strasse 49
 82049 Pullach
 Tel.: 089-21104 488
 Fax: 089-21104 202

 [see source] 
 Cooling pipe connection 
 Plasterboard ceiling coffer with circulated air cooling unit 
 Addendum 7c: Layout of ceiling coffer for cooling to the Lease Agreement with Linotype GmbH 
 Building unit view: 3rd floor 

 Addendum 8 
 to the
Lease Agreement between Linotype GmbH and ELINOR Grundstücksgesellschaft mbH & Co. Apollo KG 
 Advertising plan 
 Linotype [logo] Position
B                Lilly [logo] Position A 
 Position C. 
 [See source] 
 “Bad Homburger
Stern, Werner-Reimers-Strasse 2-4” 
 EASTERN VIEWRights Agreement

 Exhibit 4.1 
 NORTHSTAR NEUROSCIENCE, INC. 
 AND 
 REGISTRAR AND TRANSFER COMPANY 
 as Rights Agent 
 RIGHTS AGREEMENT 
 Dated as of May 21,
2008 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 1.
	  	 Certain Definitions
	  	1
			
	 2.
	  	 Appointment of Rights Agent
	  	6
			
	 3.
	  	 Issuance of Right Certificates
	  	6
			
	 4.
	  	 Form of Right Certificates
	  	8
			
	 5.
	  	 Countersignature and Registration
	  	9
			
	 6.
	  	 Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates
	  	9
			
	 7.
	  	 Exercise of Rights; Purchase Price; Expiration Date of Rights
	  	10
			
	 8.
	  	 Cancellation and Destruction of Right Certificates
	  	12
			
	 9.
	  	 Reservation and Availability of Shares of Preferred Stock
	  	12
			
	 10.
	  	 Preferred Stock Record Date
	  	13
			
	 11.
	  	 Adjustments to Number and Kind of Shares, Number of Rights or Purchase Price
	  	14
			
	 12.
	  	 Certification of Adjustments or Number of Shares
	  	22
			
	 13.
	  	 Consolidation, Merger or Sale or Transfer of Assets or Earning Power
	  	23
			
	 14.
	  	 Fractional Rights and Fractional Shares
	  	26
			
	 15.
	  	 Rights of Action
	  	27
			
	 16.
	  	 Agreement of Right Holders
	  	28
			
	 17.
	  	 Right Certificate Holder Not Deemed a Shareholder
	  	28
			
	 18.
	  	 Concerning the Rights Agent
	  	29
			
	 19.
	  	 Merger or Consolidation or Changed Name of Rights Agent
	  	29
			
	 20.
	  	 Duties of Rights Agent
	  	30
			
	 21.
	  	 Change of Rights Agent
	  	32
			
	 22.
	  	 Issuance of New Right Certificates
	  	32
			
	 23.
	  	 Redemption
	  	33

  

 i 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	 24.
	  	 Exchange of Rights for Common Stock
	  	34
			
	 25.
	  	 Notice of Proposed Actions
	  	35
			
	 26.
	  	 Notices
	  	36
			
	 27.
	  	 Supplements and Amendments
	  	36
			
	 28.
	  	 Successors
	  	37
			
	 29.
	  	 Benefits of this Rights Agreement
	  	37
			
	 30.
	  	 Determinations and Actions by the Board of Directors
	  	37
			
	 31.
	  	 Three Year Independent Director Evaluation
	  	37
			
	 32.
	  	 Governing Law
	  	38
			
	 33.
	  	 Counterparts
	  	38
			
	 34.
	  	 Descriptive Headings
	  	38
			
	 35.
	  	 Severability
	  	38

  

 ii 

 RIGHTS AGREEMENT 
 This Rights Agreement (the “Rights Agreement”), is dated as of May 21, 2008 (the “Effective Date”), between Northstar Neuroscience, Inc., a Washington corporation (the
“Company”), and Registrar and Transfer Company (the “Rights Agent”). 
 WITNESSETH: 
 WHEREAS, the Board of Directors of the Company on May 21, 2008 (i) authorized the issuance and declared a dividend of one right
(“Right”) for each share of the Common Stock, par value $0.001 per share, of the Company outstanding as of the Close of Business (as such term is hereinafter defined) on June 2, 2008 (the “Record Date”), each
Right representing the right to purchase one one-thousandth of a share of Series A Preferred Stock of the Company having the rights, powers and preferences set forth in the form of Articles of Amendment attached hereto as Exhibit A upon
the terms and subject to the conditions hereinafter set forth, and (ii) further authorized and directed the issuance of one Right with respect to each share of Common Stock of the Company that shall become outstanding between the Record Date,
and the Distribution Date (as such term is hereinafter defined); 
 NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties agree as follows: 
 1. Certain Definitions. For purposes of this Rights Agreement the
following terms shall have the meanings indicated: 
 (a) “Acquiring Person” shall mean any Person (as such
term is hereinafter defined) who or which, together with all Affiliates (as such term is hereinafter defined) and Associates (as such term is hereinafter defined) of such Person shall be the Beneficial Owner (as such term is hereinafter defined) of
fifteen percent (15%) or more of the outstanding Common Stock of the Company, without the prior approval of the Board of Directors; provided, however, that in no event shall a Person who or which, together with all Affiliates and
Associates of such Person, is the Beneficial Owner of less than 15% of the Company’s outstanding Common Stock, become an Acquiring Person solely as a result of a reduction of the number of shares of outstanding Common Stock, including
repurchases of outstanding shares of Common Stock by the Company, which reduction increases the percentage of outstanding shares of Common Stock Beneficially Owned by such Person, provided, further, that if a Person shall become the
Beneficial Owner of 15% or more of the Company’s outstanding Common Stock then outstanding solely by reason of a reduction of the number of shares of outstanding Common Stock, and shall thereafter become the Beneficial Owner of any additional
shares of Common Stock of the Company, then such Person shall be deemed to be an Acquiring Person unless upon the consummation of the acquisition of such additional shares of Common Stock such person does not own 15% or more of the shares of Common
Stock then outstanding. An Acquiring Person shall not include an Exempt Person (as such term is hereinafter defined) or a Grandfathered Person (as such term is hereinafter defined); provided, further, that a Grandfathered Person shall
become an Acquiring Person if (i) without the prior approval of the Board of Directors, the Grandfathered Person, together with all Affiliates and Associates of such 

 
Grandfathered Person, becomes the Beneficial Owner of an additional number of shares, in addition to such Grandfathered Person’s shares of Common Stock
Beneficially Owned on the Effective Date, equal in the aggregate to 1% or more of the Common Stock then outstanding; but (ii) a Grandfathered Person shall not become an Acquiring Person solely by reason of a reduction of the number of shares of
outstanding Common Stock. Notwithstanding the foregoing, if (i) either (X) the Board of Directors determines in good faith that a Person who would otherwise be an Acquiring Person, as defined pursuant to the foregoing provisions of this
paragraph (a), has become such inadvertently (including, without limitation, because (A) such Person was unaware that it Beneficially Owned a percentage of Common Stock that would otherwise cause such Person to be an Acquiring Person or
(B) such Person was aware of the extent of its Beneficial Ownership but had no actual knowledge of the consequences of such Beneficial Ownership under this Rights Agreement) and without any intention of changing or influencing control of the
Company, or (Y) within two Business Days of being requested by the Company to advise the Company regarding same, such Person certifies in writing that such Person acquired Beneficial Ownership of 15% or more of the Company’s outstanding
Common Stock inadvertently or without knowledge of the terms of the Rights, and (ii) such Person divests as promptly as practicable a sufficient number of shares of Common Stock so that such Person would no longer be an “Acquiring
Person,” as defined pursuant to the foregoing provisions of this paragraph (a), then such Person shall not be deemed to be or to have become an “Acquiring Person” for any purposes of this Rights Agreement. 
 (b) “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in
Rule 12b-2 of the General Rules and Regulations under the Exchange Act as in effect on the date of this Rights Agreement. 
 (c) A Person shall be deemed the “Beneficial Owner” of, shall be deemed to “Beneficially Own” and shall be deemed to have “Beneficial Ownership” of, any securities: 
 (i) which such Person or any of such Person’s Affiliates or Associates beneficially owns, directly or indirectly; 
 (ii) which such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has (A) the right to acquire
(whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona
fide public offering of securities), whether or not in writing, or upon the exercise of conversion rights, exchange rights, rights (other than the Rights), warrants or options, or otherwise; provided, however, that a Person shall not
be deemed the Beneficial Owner of, to Beneficially Own or to have Beneficial Ownership of, securities tendered pursuant to a tender or exchange offer made by such Person or any of such Person’s Affiliates or Associates until such tendered
securities are accepted for purchase or exchange; or (B) the right to vote or dispose of or has “beneficial ownership” of (as determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Exchange Act, or any
comparable or successor rule), including pursuant to any agreement, arrangement or understanding (whether or not in writing); provided, however, that a Person shall not be deemed the Beneficial Owner of, to Beneficially Own, or to have
Beneficial Ownership of, any securities if the agreement, arrangement or understanding to vote such security (1) arises solely from a revocable proxy or 

  

 2 

 
consent given in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations of the
Exchange Act and (2) is not also then reportable by such Person on Schedule 13D under the Exchange Act (or any comparable or successor report); or 
 (iii) which are beneficially owned, directly or indirectly, by any other Person with which such Person or any of such Person’s
Affiliates or Associates has any agreement, arrangement or understanding (whether or not in writing) for the purpose of acquiring, holding, voting except as described in the proviso to clause (B) of subparagraph (ii) of this
Section 1(c) or disposing of any securities of the Company; provided, however, that no Person who is an officer, director or employee of an Exempt Person shall be deemed, solely by reason of such Person’s status or authority
as such, to be the Beneficial Owner of, to have Beneficial Ownership of or to Beneficially Own any securities that are Beneficially Owned (as defined in this Section 1(c)), including, without limitation, in a fiduciary capacity, by an Exempt
Person or by any other such officer, director or employee of an Exempt Person. 
 For all purposes of this Rights Agreement, any calculation
of the number of shares of Common Stock outstanding at any particular time, including any calculation for purposes of determining the particular percentage of such outstanding shares of Common Stock of which any Person is the Beneficial Owner, shall
be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange Act as in effect on the date hereof. 
 (d) “Board of Directors” shall mean the Company’s Board of Directors. 
 (e) “Business Day” shall mean any day other than a Saturday, Sunday, or a day on which the NASDAQ or banking institutions
in the State of New York or the State of Washington are authorized or obligated by law or executive order to close. 
 (f)
“Close of Business” on any given date shall mean 5:00 P.M., New York time, on such date; provided, however, that if such date is not a Business Day it shall mean 5:00 P.M., New York time, on the next
succeeding Business Day. 
 (g) “Common Stock” when used with reference to the Company shall mean the common
stock, par value $0.001 per share, of the Company. “Common Stock” when used with reference to any Person other than the Company which shall be organized in corporate form shall mean the capital stock or other equity security with the
greatest per share voting power of such Person or, if such Person is a Subsidiary of or is controlled by another Person, the Person which ultimately controls such first-mentioned Person. “Common Stock” when used with reference to any
Person other than the Company which shall not be organized in corporate form shall mean units of beneficial interest which shall represent the right to participate in profits, losses, deductions and credits of such Person and which shall be entitled
to exercise the greatest voting power per unit of such Person. 
 (h) “Common Stock Equivalents” shall have
the meaning set forth in Section 11(a)(iii) hereof. 
 (i) “Company” shall have the meaning set forth in
the preamble hereto. 
  

 3 

 (j) “Current Market Price” shall have the meaning set forth in
Section 11(d) hereof. 
 (k) “Current Value” shall have the meaning set forth in Section 11(a)(iii)
hereof. 
 (l) “Distribution Date” shall have the meaning set forth in Section 3(a) hereof. 

(m) “Effective Date” shall have the meaning set forth in the preamble hereto. 
 (n) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 (o) “Exempt Person” shall mean the Company or any Subsidiary of the Company, including, without limitation, in its
fiduciary capacity, any employee benefit plan or employee or director stock plan of the Company or of any Subsidiary of the Company, or any Person, organized, appointed, established or holding Common Stock for or pursuant to the terms of any such
plan or any Person funding other employee benefits for employees of the Company or any Subsidiary of the Company. 
 (p)
“Expiration Date” shall have the meaning set forth in Section 7(a) hereof. 
 (q) “Final
Expiration Date” shall have the meaning set forth in Section 7(a) hereof. 
 (r) “Flip-In
Event” shall mean any event described in Section 11(a)(ii)(A), 11(a)(ii)(B) or 11(a)(ii)(C) hereof. 
 (s)
“Flip-In Exercise Payment” shall have the meaning set forth in Section 11(a)(ii) hereof. 
 (t)
“Flip-In Trigger Date” shall have the meaning set forth in Section 11(a)(iii) hereof. 
 (u)
“Flip-Over Event” shall mean any event described in clause (x), (y) or (z) of Section 13(a) hereof. 
 (v) “Flip-Over Exercise Payment” shall have the meaning set forth in Section 13(a) hereof. 
 (w) “Grandfathered Person” shall mean each of Kevin C. Tang, Tang Capital Management LLC and Tang Capital Partners LP, together with such Person’s Affiliates and Associates, provided that each of
such Persons shall cease to be a Grandfathered Person at such time as each such Person, together with such Person’s Affiliates and Associates, ceases to Beneficially Own in excess of 15% of the Company’s Common Stock. 
 (x) “NASDAQ” shall have the meaning set forth in Section 9(b) hereof. 
  

 4 

 (y) “Person” shall mean any individual, firm, corporation, partnership,
trust, limited liability company or other entity, and shall include any successor (by merger or otherwise) thereof or thereto. 
 (z) “Preferred Stock” shall mean the Series A Preferred Stock, $0.001 par value per share of the Company having the rights, powers and preferences set forth in Exhibit A hereto, and, to the extent that there is
not a sufficient number of shares of Series A Preferred Stock authorized to permit the full exercise of the Rights, any other series of Preferred Stock, $0.001 par value per share, of the Company designated for such purpose containing terms
substantially similar to the terms of the Series A Preferred Stock. 
 (aa) “Preferred Stock Equivalent”
shall have the meaning set forth in Section 11(b) hereof. 
 (bb) “Principal Party” shall have the
meaning set forth in Section 13(b) hereof. 
 (cc) “Purchase Price” shall have the meaning set forth in
Section 4(a) hereof. 
 (dd) “Record Date” shall have the meaning set forth in the Recitals within this
Rights Agreement. 
 (ee) “Redemption Date” shall have the meaning set forth in Section 7(a) hereof.

 (ff) “Redemption Price” shall have the meaning set forth in Section 23(a) hereof. 
 (gg) “Right Certificate” shall have the meaning set forth in Section 3(a) hereof. 
 (hh) “Securities Act” shall mean the Securities Act of 1933, as amended. 
 (ii) “Spread” shall have the meaning set forth in Section 11(a)(iii) hereof. 
 (jj) “Stock Acquisition Date” shall mean the first date of public announcement by the Company or an Acquiring Person that
an Acquiring Person has become such or such earlier date as a majority of the directors shall become aware of the existence of an Acquiring Person. 
 (kk) “Substitution Period” shall have the meaning set forth in Section 11(a)(iii) hereof. 
 (ll) “Subsidiary” of a Person shall mean any corporation or other entity of which securities or other ownership interests having ordinary voting power sufficient to elect a majority of the board of
directors or other persons performing similar functions are Beneficially Owned, directly or indirectly, by such Person and any corporation or other entity that is otherwise controlled by such Person. 
  

 5 

 (mm) “Summary of Rights” shall have the meaning set forth in
Section 3(b) hereof. 
 (nn) “Trading Day” shall mean a day on which the principal national securities
exchange 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 , a Business Day.

 (oo) “Triggering Event” shall mean any event described in Section 11(a)(ii)(A), 11(a)(ii)(B) or
11(a)(ii)(C) or Section 13 hereof. 
 (pp) “Voting Power” shall mean the voting power of all securities
of the Company then outstanding and generally entitled to vote for the election of directors of the Company. 
 Any determination required by
the definitions contained in this Section 1 shall be made by the Board of Directors in its good faith judgment, which determination shall be binding on the Rights Agent and the holders of the Rights. 
 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as rights agent for the Company in accordance with the terms
and conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint a co-rights agent as it may deem necessary or desirable. In the event the Company appoints one or more co-rights agents, the
respective duties of the Rights Agents and any co-rights agents shall be as the Company shall determine. 
 3. Issuance of Right
Certificates. 
 (a) Until the earlier of (i) the tenth day after the Stock Acquisition Date (or, if the Stock
Acquisition Date occurs before the Record Date, the Close of Business on the Record Date) or (ii) the tenth Business Day (or such later date as may be determined by action of the Board of Directors prior to such time as any Person becomes an
Acquiring Person) after the date of the commencement by any Person (other than an Exempt Person) of, or of the first public announcement of the intent of any Person (other than an Exempt Person) to commence (which intention to commence remains in
effect for five business days after such announcement), a tender or exchange offer upon the successful consummation of which such Person, together with its Affiliates and Associates, would be the Beneficial Owner of 15% or more of the outstanding
Common Stock (irrespective of whether any shares are actually purchased pursuant to any such offer) (including any such date which is after the date of this Rights Agreement and prior to the issuance of the Rights; the earlier of such dates being
herein referred to as the “Distribution Date”), (x) the Rights will be evidenced (with a copy of the Summary of Rights attached thereto) by the certificates for the Common Stock registered in the names of the holders of the
Common Stock and not by separate Right Certificates, and (y) each Right will be transferable only in connection with the transfer of a share (subject to adjustment as hereinafter provided) of Common Stock. As soon as practicable after the
Distribution Date, the Company will prepare and execute, the Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if requested and provided with all necessary information, send) 

  

 6 

 
by first-class, insured, postage prepaid mail, to each record holder of the Common Stock as of the Close of Business on the Distribution Date, as shown by
the records of the Company, to the address of such holder shown on such records, a Right certificate in substantially the form of Exhibit B hereto (a “Right Certificate”) evidencing one Right for each share of Common
Stock so held. In the event that an adjustment in the number of Rights per share of Common Stock has been made pursuant to Sections 11 or 13 hereof, at the time of distribution of the Rights Certificates, the Company shall make the necessary and
appropriate rounding adjustments (in accordance with Section 14(a) hereof), so that Rights Certificates representing only whole numbers of Rights are distributed and cash is paid in lieu of any fractional Rights. As of and after the
Distribution Date the Rights will be evidenced solely by such Right Certificates. 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 is received by the Rights Agent, the Rights Agent may presume conclusively for all purposes that the Distribution Date has not occurred. 
 (b) On the Record Date, or as soon as practicable thereafter, the Company will send a copy of a Summary of Rights to Purchase Preferred
Stock, substantially in the form attached hereto as Exhibit C (a “Summary of Rights”), by first-class, postage prepaid mail, to each record holder of Common Stock as of the Close of Business on the Record Date, at the
address of such holder shown on the records of the Company. 
 (c) Rights shall be issued in respect of all shares of Common
Stock that are issued (either as an original issuance or from the Company’s treasury) after the Record Date prior to the earlier of the Distribution Date or the Expiration Date. With respect to certificates representing such shares of Common
Stock, the Rights will be evidenced by such certificates for Common Stock registered in the names of the holders thereof together with the Summary of Rights. Until the Distribution Date (or, if earlier, the Expiration Date), the surrender for
transfer of any certificate for Common Stock outstanding on the Record Date (with or without a copy of the Summary of Rights attached thereto), shall also constitute the surrender for transfer of the Rights associated with the Common Stock
represented thereby. 
 (d) Certificates issued for Common Stock (including, without limitation, certificates issued upon
transfer or exchange of Common Stock) after the Record Date but prior to the earlier of the Distribution Date or the Expiration Date shall have impressed on, printed on, written on or otherwise affixed to them a legend in substantially the following
form: 
 This certificate also evidences and entitles the holder hereof to certain Rights as set forth in the Rights Agreement between
Northstar Neuroscience, Inc. and Registrar and Transfer Company, as Rights Agent, dated as of May 21, 2008, as the same may be amended or supplemented from time to time (the “Rights Agreement”), the terms of which hereby are
incorporated herein by reference and a copy of which is on file at the principal executive office of Northstar Neuroscience, Inc. Under certain circumstances, as set forth in the Rights Agreement, such Rights (as such term is defined in the Rights
Agreement) will be evidenced by separate certificates and will no longer be evidenced by this certificate. Northstar Neuroscience, Inc. will mail to the holder of this certificate a copy of the Rights Agreement without charge after receipt by it of
a written request 

  

 7 

 
therefor. Under certain circumstances as provided in the Rights Agreement, Rights issued to, Beneficially Owned by, or transferred to, any Person who
is or becomes an Acquiring Person (as such terms are defined in the Rights Agreement) or an Associate or Affiliate (as such terms are defined in the Rights Agreement) thereof and certain transferees thereof will be null and void and will no longer
be transferable. 
 With respect to such certificates containing the foregoing legend, the Rights associated with the Common Stock represented
by such certificates shall, until the Distribution Date, be evidenced by such certificates alone, and registered holders of Common Stock shall also be the registered holders of the associated Rights, and the surrender for transfer of any such
certificate shall also constitute the surrender for transfer of the Rights associated with the Common Stock represented thereby. In the event that the Company purchases or acquires any shares of Common Stock after the Record Date but prior to the
earlier of the Distribution Date, the Redemption Date or the Expiration Date, any Rights associated with such shares of Common Stock shall be deemed cancelled and retired so that the Company shall not be entitled to exercise any Rights associated
with the shares of Common Stock no longer outstanding. 
 Notwithstanding this subsection (d), the omission of a legend shall not affect
the enforceability of any part of this Rights Agreement or the rights of any holder of the Rights. 
 4. Form of Right Certificates.

 (a) The Right Certificates (and the forms of election to purchase shares and of assignment to be printed on the reverse
thereof), when, as and if issued, shall be substantially in the form set forth in Exhibit B hereto and may have such marks of identification or designation and such legends, summaries or endorsements printed thereon as the Company may
deem appropriate and as are not inconsistent with the provisions of this Rights Agreement, or as may be required to comply with any law or with any rule or regulation made pursuant thereto 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 provisions of Sections 11, 13 and 22 hereof, the Right Certificates evidencing the Rights issued on the Record Date whenever such certificates are issued,
shall be dated as of the Record Date and the Right Certificates evidencing Rights to holders of record of Common Stock issued after the Record Date shall be dated as of the Record Date but shall also be dated to reflect the date of issuance of such
Right Certificate. On their face, Right Certificates shall entitle the holders thereof to purchase, for each Right, one one-thousandth of a share of Preferred Stock, or other securities or property as provided herein, as the same may from time to
time be adjusted as provided herein, at the price per one one-thousandth of a share of Preferred Stock of $12.18, as the same may from time to time be adjusted as provided herein (the “Purchase Price”). 
  

 8 

 (b) Notwithstanding any other provision of this Rights Agreement, any Right Certificate
that represents Rights that are or were at any time on or after the earlier of the Stock Acquisition Date or the Distribution Date Beneficially Owned by an Acquiring Person or any Affiliate or Associate thereof (or any transferee of such Rights)
shall have impressed on, printed on, written on or otherwise affixed to it (if the Company or the Rights Agent has knowledge that such Person is an Acquiring Person or an Associate or Affiliate thereof or transferee of such Persons or a nominee of
any of the foregoing) a legend in substantially the following form: 
 The Beneficial Owner of the Rights represented by this Right
Certificate is an Acquiring Person or an Affiliate or Associate of an Acquiring Person or a subsequent holder of such Right Certificates Beneficially Owned by such Persons (as such terms are defined in the Rights Agreement). Accordingly, this Right
Certificate and the Rights represented hereby are null and void and will no longer be transferable as provided in the Rights Agreement. 
 The provisions
of Section 11(a)(ii) and Section 24 of this Rights Agreement shall be operative whether or not the foregoing legend is contained on any such Right Certificates. 
 5. Countersignature and Registration. 
 (a) The Right Certificates shall be executed
on behalf of the Company by its Chief Executive Officer, its President or any Vice President, either manually or by facsimile signature, and have affixed thereto the Company’s seal or a facsimile thereof which shall be attested by the Secretary
or an Assistant Secretary of the Company, either manually or by facsimile signature. The Right Certificates shall be countersigned either manually or by facsimile by the Rights Agent and shall not be valid for any purpose unless so countersigned. In
case any officer of the Company who shall have signed any of the Right Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the Company, such Right Certificates,
nevertheless, may be countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as though the person who signed such Right Certificates had not ceased to be such officer of the Company; and any Right
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 Agreement any such person was not such an officer. 
 (b) Following the Distribution Date and receipt by the
Rights Agent of notice to that effect and all other relevant information referred to in Section 3(a), the Rights Agent will keep or cause to be kept, at its office designated for such purpose, records for registration and transfer of the Right
Certificates issued hereunder. Such records shall show the names and addresses of the respective holders of the Right Certificates, the number of Rights evidenced on its face by each of the Right Certificates, the date of each of the Right
Certificates and the certificate numbers for each of the Right Certificates. 
 6. Transfer, Split Up, Combination and Exchange of Right
Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates. 
 (a) Subject to the provisions of
Sections 7(e), 11(a)(ii) and 14 hereof, at any time after the Close of Business on the Distribution Date and at or prior to the Close of Business on the Expiration Date, and following receipt in writing by the Rights Agent of notice to that
effect, any Right Certificate or Certificates (other than Right Certificates representing Rights that have become null and void pursuant to Section 11(a)(ii) hereof or that have been exchanged pursuant to Section 24 hereof) may be
(i) transferred or (ii) split up, combined or exchanged for another Right Certificate or Right Certificates, entitling the registered holder to purchase a like number of shares of Preferred Stock or other securities as the Right
Certificate or Right 

  

 9 

 
Certificates surrendered then entitled such holder to purchase. Any registered holder desiring to transfer any Right Certificate shall surrender the Right
Certificate at the office of the Rights Agent designated for such purposes with the form of assignment on the reverse side thereof duly endorsed (or enclose with such Right Certificate a written instrument of transfer in form satisfactory to the
Company and the Rights Agent), duly executed by the registered holder thereof or his attorney duly authorized in writing, and with such signature guaranteed by a member of a securities approved medallion program. Any registered holder desiring to
split up, combine or exchange any Right Certificate or Right Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender the Right Certificate or Right Certificates to be split up, combined or exchanged at the
office of the Rights Agent designated for such purpose. 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 Right Certificates until the registered holder thereof shall have (i) completed and signed the certificate contained in the form of assignment set forth on the reverse side of each such
Right Certificate, (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) thereof and of the Rights evidenced thereby and the Affiliates and Associates of such Beneficial Owner (or former
Beneficial Owner) as the Company or the Rights Agent shall reasonably request, and (iii) paid a sum sufficient to cover any tax or charge that may be imposed in connection with any transfer, split up, combination or exchange of Right
Certificates as required by Section 9(d) hereof. Thereupon the Rights Agent shall, subject to Sections 4(b), 7(e), 11 and 14 hereof, manually countersign and deliver to the Person entitled thereto a Right Certificate or Right Certificates,
as the case may be, as so requested, registered in such name or names as may be designated by the surrendering registered holder. The Company may require payment from the holder of a Right Certificate of a sum sufficient to cover any tax or charge
that may be imposed in connection with any transfer, split up, combination or exchange of Right Certificates. The Rights Agent shall have no duty or obligation to take any action under this Section or any other section of this Rights Agreement which
requires the payment by a Rights holder of applicable taxes or charges unless and until the Rights Agent is satisfied that all such taxes and/or charges have been paid. 
 (b) Subject to the provisions of Section 11(a)(ii) hereof, upon receipt by the Company and the Rights Agent of evidence reasonably
satisfactory to them of the loss, theft, destruction or mutilation of a Right Certificate, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, and, if requested by the Company, reimbursement to the
Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Right Certificate if mutilated, the Company will make, execute and deliver a new Right Certificate of like
tenor to the Rights Agent for countersignature and delivery to the registered owner in lieu of the Right Certificate so lost, stolen, destroyed or mutilated. 
 7. Exercise of Rights; Purchase Price; Expiration Date of Rights. 
 (a) Subject to
Section 11(a)(ii) hereof, the Rights shall become exercisable, and may be exercised to purchase Preferred Stock, except as otherwise provided herein, in whole or in part at any time after the Distribution Date upon surrender of the Right
Certificate, with the form of election to purchase on the reverse side thereof duly executed (with such signature duly 

  

 10 

 
guaranteed), to the Rights Agent at the office of the Rights Agent designated for such purpose, together with payment of the Purchase Price with respect to
each Right exercised, subject to adjustment as hereinafter provided, at or prior to the Close of Business on the earlier of (i) May 21, 2018 (the “Final Expiration Date”), (ii) the time at which the Rights are
redeemed as provided in Section 23 hereof (such date being herein referred to as the “Redemption Date”) or (iii) the time at which all such Rights are exchanged as provided in Section 24 hereof (the earliest of (i),
(ii) and (iii) being herein referred to as the “Expiration Date”). Except for those provisions herein which expressly survive the termination of this Rights Agreement, this Rights Agreement shall terminate at such time as
the Rights are no longer exercisable hereunder. 
 (b) The Purchase Price and the number of shares of Preferred Stock or other
securities or consideration to be acquired upon exercise of a Right shall be subject to adjustment from time to time as provided in Sections 11 and 13 hereof. The Purchase Price shall be payable in lawful money of the United States of America,
in accordance with Section 7(c) hereof. 
 (c) Except as provided in Section 11(a)(ii) hereof, upon receipt of a
Right Certificate with the form of election to purchase duly executed, accompanied by payment of the Purchase Price (as such amount may be reduced pursuant to Section 11(a)(iii) hereof) or so much thereof as is necessary for the shares to be
purchased and an amount equal to any applicable tax or charge, by cash, certified check or official bank check payable to the order of the Company or the Rights Agent, the Rights Agent shall, subject to Section 20(k) hereof, thereupon promptly
(i) requisition from any transfer agent of the Preferred Stock (or make available if the Rights Agent is the transfer agent) certificates for the number of shares of Preferred Stock so elected to be purchased and the Company will comply and
hereby authorizes and directs such transfer agent to comply with all such requests, (ii) requisition from the Company the amount of cash to be paid in lieu of issuance of fractional shares in accordance with Section 14(b) hereof, and
(iii) promptly after receipt of such Preferred Stock certificates cause the same to be delivered to or upon the order of the registered holder of such Right Certificate, registered in such name or names as may be designated by such holder, and,
when appropriate, after receipt of the cash requisitioned from the Company promptly deliver such cash to or upon the order of the registered holder of such Right Certificate. In the event of a purchase of securities, other than Preferred Stock,
pursuant to Section 11(a) or Section 13 hereof, the Company shall promptly provide written notice to the Rights Agent and the Rights Agent, relying on such notice, shall promptly take the appropriate actions corresponding to the foregoing
clauses (i) through (iii). In the event that the Company is obligated to issue other securities of the Company, pay cash and/or distribute other property pursuant to Section 11(a) hereof, the Company will make all arrangements necessary so
that such other securities, cash and/or other property are available for distribution by the Rights Agent, if and when appropriate. 
 (d) Except as otherwise provided herein, in case the registered holder of any Right Certificate shall exercise less than all the Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent to the Rights remaining
unexercised shall be issued by the Rights Agent to the registered holder of such Right Certificate or to his duly authorized assigns, subject to the provisions of Sections 6 and 14 hereof. 
  

 11 

 (e) Notwithstanding anything in this Rights Agreement to the contrary, neither the Rights
Agent nor the Company shall be obligated to undertake any action with respect to a registered holder upon the occurrence of any purported exercise as set forth in this Section 7 unless such registered holder shall have (i) properly
completed and signed the certificate contained in the form of election to purchase set forth on the reverse side of the Right Certificate surrendered for such exercise and (ii) provided such additional evidence of the identity of the Beneficial
Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company or the Rights Agent shall reasonably request. 
 8.
Cancellation and Destruction of Right Certificates. All Right Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the
Rights Agent for cancellation or in cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by it, and no Right Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Rights
Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any Right Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The
Rights Agent shall deliver all cancelled Right Certificates to the Company, or shall, at the written request of the Company, destroy such cancelled Right Certificates, and in such case shall deliver a certificate of destruction thereof to the
Company. 
 9. Reservation and Availability of Shares of Preferred Stock. 
 (a) The Company covenants and agrees that at all times it will cause to be reserved and kept available, out of and to the extent of its
authorized and unissued shares of Preferred Stock not reserved for another purpose (and, following the occurrence of a Triggering Event, other securities), the number of shares of Preferred Stock (and, following the occurrence of a Triggering Event,
other securities) that, as provided in this Rights Agreement, including Section 11(a)(iii) hereof, will be sufficient to permit the exercise in full of all outstanding Rights; provided, however, that the Company shall be required
to reserve and keep available shares of Preferred Stock or other securities sufficient to permit the exercise in full of all outstanding Rights pursuant to the adjustments set forth in Section 11(a)(ii), Section 11(a)(iii) or
Section 13 hereof only if, and to the extent that, the Rights become exercisable pursuant to such adjustments. 
 (b) The
Company shall (i) use its best efforts to cause, from and after such time as the Rights become exercisable, the Rights and all shares of Preferred Stock (and following the occurrence of a Triggering Event, other securities) issued or reserved
for issuance upon exercise thereof to be reported by the National Association of Securities Dealers, Inc. Automated Quotations System (“NASDAQ”) or such other system then in use, and if the Preferred Stock shall become listed on any
national securities exchange, to cause, from and after such time as the Rights become exercisable, the Rights and all shares of Preferred Stock (and, following the occurrence of a Triggering Event, other securities) issued or reserved for issuance
upon exercise thereof to be listed on such exchange upon official notice of issuance upon such exercise and (ii) if then necessary, to permit the offer and issuance of such shares of Preferred Stock (and, following the occurrence of a
Triggering Event, other securities), register and qualify such share of Preferred Stock (and, following the occurrence of a Triggering Event, other securities) under the Securities Act and any applicable state securities or “blue sky” laws
(to the extent exemptions therefrom are not available), cause such registration statement and 

  

 12 

 
qualifications to become effective as soon as possible after such filing and keep such registration and qualifications effective until the Expiration Date of
the Rights. The Company may temporarily suspend, for a period of time not to exceed ninety (90) days, the exercisability of the Rights in order to prepare and file a registration statement under the Securities Act 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 at such time as the suspension is no longer in effect.
The Company shall notify the Rights Agent whenever it makes a public announcement pursuant to this Section 9(b) and give the Rights Agent a copy of such announcement. Notwithstanding any provision of this Rights Agreement to the contrary, the
Rights shall not be exercisable in any jurisdiction unless the requisite qualification in such jurisdiction shall have been obtained and until a registration statement under the Securities Act (if required) shall have been declared effective.

 (c) The Company covenants and agrees that it will take all such action as may be necessary to ensure that all shares of
Preferred Stock (and following the occurrence of a Triggering Event, other securities) delivered upon exercise of Rights shall, at the time of delivery of the certificates for such shares (subject to payment of the Purchase Price in respect
thereof), be duly and validly authorized and issued and fully paid and nonassessable shares in accordance with applicable law. 
 (d) The Company further covenants and agrees that it will pay when due and payable any and all taxes and charges which may be payable in respect of the issuance or delivery of the Right Certificates or of any shares of Preferred Stock (or
other securities, as the case may be) upon the exercise of Rights. The Company shall not, however, be required to pay any tax or charge which may be payable in respect of any transfer or delivery of Right Certificates to a Person other than, or the
issuance or delivery of certificates for Preferred Stock (or other securities, as the case may be) upon exercise of Rights in a name other than that of, the registered holder of the Right Certificate, and the Company shall not be required to issue
or deliver a Right Certificate or certificate for Preferred Stock (or other securities, as the case may be) to a Person other than such registered holder until any such tax and charge shall have been paid (any such tax or charge being payable by the
holder of such Right Certificate at the time of surrender) or until it has been established to the Company’s satisfaction that no such tax or charge is due. 
 10. Preferred Stock Record Date. Each Person in whose name any certificate for shares of Preferred Stock (or other securities, as the case may be) is issued upon the exercise of Rights shall for all purposes be
deemed to have become the holder of record of the shares of Preferred Stock (or other securities, as the case may be) represented thereby on, and such certificate shall be dated, the date upon which the Right Certificate evidencing such Rights was
duly surrendered and payment of the Purchase Price (and any applicable taxes or charges) was made. Prior to the exercise of the Rights evidenced thereby, the holder of a Right Certificate, as such, shall not be entitled to any rights of a
shareholder of the Company with respect to the shares for which the Rights shall be exercisable, including, without limitation, the right to vote, to receive dividends or other distributions or to exercise any preemptive rights, if any, and shall
not be entitled to receive any notice of any proceedings of the Company, except as provided herein. 
  

 13 

 11. Adjustments to Number and Kind of Shares, Number of Rights or Purchase Price. The number and
kind of shares subject to purchase upon the exercise of each Right, the number of Rights outstanding and the Purchase Price are subject to adjustment from time to time as follows: 
 (a) 
 (i) In
the event the Company shall at any time after the date of this Rights Agreement (A) declare or pay any dividend on Preferred Stock payable in shares of Preferred Stock, (B) subdivide or split the outstanding shares of Preferred Stock into
a greater number of shares, (C) combine or consolidate the outstanding shares of Preferred Stock into a smaller number of shares or effect a reverse split of the outstanding shares of Preferred Stock, or (D) issue any shares of its capital
stock in a reclassification of the Preferred Stock (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving corporation), except as otherwise provided in this
Section 11(a), the Purchase Price in effect at the time of the record date for such dividend or of the effective date of such subdivision, combination or reclassification, and the number and kind of shares of Preferred Stock or capital stock,
as the case may be, issuable on such date, shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled to receive, upon payment of the Purchase Price then in effect, the aggregate number and kind of
shares of capital stock or other securities, which, if such Right had been exercised immediately prior to such date, the holder thereof would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision,
combination or reclassification. If an event occurs which would require an adjustment under both this Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided for in this Section 11(a)(i) shall be in addition to, and
shall be made prior to, any adjustment required pursuant to Section 11(a)(ii). 
 (ii) Subject to Section 24, in the
event 
 (A) any Acquiring Person or any Associate or Affiliate of any Acquiring Person, at any time after the date of this
Rights Agreement, directly or indirectly, (1) shall consolidate with or merge with and into the Company or any of its Subsidiaries or otherwise combine with the Company or any of its Subsidiaries and the Company or such Subsidiary shall be the
continuing or surviving corporation of such consolidation, merger or combination and the Common Stock of the Company shall remain outstanding and no shares thereof shall be changed into or exchanged for stock or other securities of the Company or of
any other Person or cash or any other property, or (2) shall, in one or more transactions, other than in connection with the exercise of a Right or Rights and other than in connection with the exercise or conversion of securities exercisable
for or convertible into securities of the Company or of any Subsidiary of the Company, transfer any assets or property to the Company or any of its Subsidiaries in exchange (in whole or in part) for any shares of any class of capital stock of the
Company or any of its Subsidiaries or any securities exercisable for or convertible into shares of any class of capital stock of the Company or any of its Subsidiaries, or otherwise obtain from the Company or any of its Subsidiaries, with or without
consideration, any additional shares of any class of capital stock of the Company or any of its Subsidiaries or any securities exercisable for or convertible into shares of any class of capital stock of the Company or any of its Subsidiaries (other
than as part of a pro rata offer or distribution by the Company or such Subsidiary to all 

  

 14 

 
holders of such shares), or (3) shall sell, purchase, lease, exchange, mortgage, pledge, transfer or otherwise acquire (other than as a pro rata
dividend) or dispose of, to, from or with, as the case may be (in one transaction or a series of transactions), the Company or any of its Subsidiaries, any assets (including securities) on terms and conditions less favorable to the Company or such
Subsidiary than the Company or such Subsidiary would be able to obtain in arm’s-length negotiation with an unaffiliated third party, or (4) shall receive any compensation from the Company or any of its Subsidiaries for services other than
compensation for employment as a regular or part-time employee, or fees for serving as a director, at rates in accordance with the Company’s (or its Subsidiary’s) past practices, or (5) shall receive the benefit, directly or
indirectly (except proportionately as a shareholder), of any loans, advances, guarantees, pledges or other financial assistance or any tax credits or tax advantage provided by the Company or any of its Subsidiaries, or (6) shall engage in any
transaction with the Company (or any of its Subsidiaries) involving the sale, license, transfer or grant of any right in, or disclosure of, any patents, copyrights, trade secrets, trademarks, know-how or any other intellectual or industrial property
rights recognized under any country’s intellectual property laws which the Company (including its Subsidiaries) owns or has the right to use on terms and conditions not approved by the Board of Directors; or 
 (B) any Person, alone or together with its Affiliates and Associates, shall become an Acquiring Person; or 
 (C) during such time as there is an Acquiring Person, there shall be any reclassification of securities (including any reverse stock
split), or any recapitalization of the Company, or any merger or consolidation of the Company with any of its Subsidiaries or any other transaction or series of transactions involving the Company or any of its Subsidiaries (whether or not with or
into or otherwise involving an Acquiring Person or any Affiliate or Associate of such Acquiring Person) which has the effect, directly or indirectly, of increasing by more than 1% the proportionate share of the outstanding shares of any class of
equity securities of the Company or any of its Subsidiaries, or securities exercisable for or convertible into equity securities of the Company or any of its Subsidiaries, which is directly or indirectly Beneficially Owned by any Acquiring Person or
any Affiliate or Associate of any Acquiring Person (any of (A), (B) or (C) being referred to herein as a “Flip-In Event”); 
 then
upon the first occurrence of such Flip-In Event (i) the Purchase Price shall be adjusted to be the Purchase Price in effect immediately prior to the Flip-In Event multiplied by the number of one one-thousandth of a share of Preferred Stock for
which a Right was exercisable immediately prior to such Flip-In Event, whether or not such Right was then exercisable, and (ii) each holder of a Right, except as otherwise provided in this Section 11(a)(ii) and Section 11(a)(iii)
hereof, shall thereafter have the right to receive, upon exercise thereof at a price equal to the Purchase Price (as so adjusted), in accordance with the terms of this Rights Agreement and in lieu of shares of Preferred Stock, such number of shares
of Common Stock as shall equal the result obtained by dividing the Purchase Price (as so adjusted) by 50% of the Current Market Price per share of the Common Stock (determined pursuant to Section 11(d) hereof) on the date of such Flip-In Event;
provided, however, that the Purchase Price (as so adjusted) and the number of shares of Common Stock so receivable upon the exercise of a Right shall, following the Flip-In Event, be subject to further adjustment as appropriate in
accordance with Section 11(f) hereof. Notwithstanding anything in this Rights Agreement to the contrary, however, from and after the 

  

 15 

 
Flip-In Event, any Rights that are Beneficially Owned by (x) any Acquiring Person (or any Affiliate or Associate of any Acquiring Person), (y) a
transferee of any Acquiring Person (or any such Affiliate or Associate) who becomes a transferee after the Flip-In Event or (z) a transferee of any Acquiring Person (or any such Affiliate or Associate) who became a transferee prior to or
concurrently with the Flip-In Event pursuant to either (I) a transfer from the Acquiring Person to holders of its equity securities or to any Person with whom it has any continuing agreement, arrangement or understanding, whether written or
otherwise, regarding the transferred Rights or (II) a transfer which the Board of Directors has determined is part of a plan, agreement, arrangement or understanding, whether written or otherwise, which has the purpose or effect of avoiding the
provisions of this paragraph, and subsequent transferees of such Persons, shall be null and void without any further action and any holder of such Rights shall thereafter have no rights whatsoever with respect to such Rights under any provision of
this Rights Agreement. The Company shall use all reasonable efforts to ensure that the provisions of this Section 11(a)(ii) are complied with, but shall have no liability to any holder of Right Certificates or other Person as a result of its
failure to make any determinations with respect to an Acquiring Person or its Affiliates, Associates or transferees hereunder. From and after the Flip-In Event, no Right Certificate shall be issued pursuant to Section 3 or Section 6 hereof
that represents Rights that are or have become null and void pursuant to the provisions of this paragraph, and any Right Certificate delivered to the Rights Agent that represents Rights that are or have become null and void pursuant to the
provisions of this paragraph shall be cancelled. The Company shall give the Rights Agent written notice of the identity of any such Acquiring Person, Associate or Affiliate, or the nominee of any of the foregoing, and the Rights Agent may rely on
such notice in carrying out its duties under this Rights Agreement and shall be deemed not to have any knowledge of the identity of any such Acquiring Person, Associate or Affiliate, or the nominee of any of the foregoing unless and until it shall
have received such notice. 
 (iii) The Company may at its option substitute for a share of Common Stock issuable upon the
exercise of Rights in accordance with the foregoing subparagraph (ii) such number or fractions of shares of Preferred Stock having an aggregate current market value equal to the Current Market Price of a share of Common Stock. In the event that
there shall not be sufficient shares of Common Stock issued but not outstanding or authorized but unissued to permit the exercise in full of the Rights in accordance with the foregoing subparagraph (ii), the Board of Directors shall, to the
extent permitted by applicable law and any material agreements then in effect to which the Company is a party (A) determine the excess (such excess, the “Spread”) of (1) the value of the shares of Common Stock issuable
upon the exercise of a Right in accordance with the foregoing subparagraph (ii) (the “Current Value”) over (2) the Purchase Price (as adjusted in accordance with the foregoing subparagraph (ii)), and (B) with
respect to each Right (other than Rights which have become null and void pursuant to the foregoing subparagraph (ii)), make adequate provision to substitute for the shares of Common Stock issuable in accordance with the foregoing
paragraph (ii) upon exercise of the Right and payment of the Purchase Price (as adjusted in accordance therewith), (1) cash, (2) a reduction in such Purchase Price, (3) shares of Preferred Stock or other equity securities of the
Company (including, without limitation, shares or fractions of shares of preferred stock which, by virtue of having dividend, voting and liquidation rights substantially comparable to those of the shares of Common Stock, are deemed in good faith by
the Board of Directors to have substantially the same value as the shares of Common Stock (such shares of Preferred Stock and shares or fractions of shares of preferred stock being hereinafter referred to as “Common Stock  

  

 16 

 
Equivalents”)), (4) debt securities of the Company, (5) other assets, or (6) any combination of the foregoing, having a value
which, when added to the value of the shares of Common Stock actually issued upon exercise of such Right, shall have an aggregate value equal to the Current Value (less the amount of any reduction in such Purchase Price), where such aggregate value
has been determined by the Board of Directors upon the advice of a nationally recognized investment banking firm selected in good faith by the Board of Directors; provided, however, that if the Company shall not make adequate provision
to deliver value pursuant to clause (B) above within 30 days following the date of the Flip-In Event (the “Flip-In Trigger Date”), then the Company shall be obligated to deliver, to the extent permitted by applicable law and
any material agreements then in effect to which the Company is a party, upon the surrender for exercise of a Right and without requiring payment of such Purchase Price, shares of Common Stock (to the extent available), and then, if necessary, such
number or fractions of shares of Preferred Stock (to the extent available) and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread. If the Board of Directors shall determine in good faith that it is likely
that sufficient additional shares of Common Stock and/or Common Stock Equivalents could be authorized for issuance upon exercise in full of the Rights, the 30-day period set forth above may be extended to the extent necessary, but not more than 90
days after the Flip-In Trigger Date, in order that the Company may seek shareholder approval for the authorization of such additional shares of Common Stock or Common Stock Equivalents (such 30-day period, as it may be extended being hereinafter
referred to as the “Substitution Period”). To the extent that the Company determines that some action need be taken pursuant to the second and/or third sentence of this Section 11(a)(iii), the Company (x) shall provide,
subject to the last sentence of Section 11(a)(ii) hereof, that such action shall apply uniformly to all outstanding Rights, and (y) may suspend the exercisability of the Rights until the expiration of the Substitution Period in order to
seek any authorization of additional shares and/or to decide the appropriate form of distribution to be made pursuant to the first sentence of Section 11(a)(iii) and to determine the value thereof. In the event of any such suspension, the
Company shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect. For purposes of this
Section 11(a)(iii), the value of the Common Stock shall be the Current Market Price per share of the Common Stock on the Flip-In Trigger Date and the per share or per unit value of any Common Stock Equivalent shall be deemed to equal the
Current Market Price per share of the Common Stock on such date. The Board of Directors may, but shall not be required to, establish procedures to allocate the right to receive Common Stock upon the exercise of the Rights among holders of Rights
pursuant to this Section 11(a)(iii). 
 (b) In case the Company shall fix a record date for the issuance of rights (other
than the Rights), options or warrants to all holders of Preferred Stock entitling them to subscribe for or purchase Preferred Stock (for a period expiring within 45 calendar days after such record date), shares having the same rights, privileges and
preferences as the Preferred Stock (a “Preferred Stock Equivalent”) or securities convertible into Preferred Stock or Preferred Stock Equivalent at a price per share of Preferred Stock or Preferred Stock Equivalent (or having a
conversion price per share, if a security is convertible into Preferred Stock or Preferred Stock Equivalent) less than the Current Market Price per share of Preferred Stock on such record date, the Purchase Price to be in effect after such record
date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the number of shares of Preferred Stock outstanding on such record date, plus the 

  

 17 

 
number of shares of Preferred Stock which the aggregate offering price of the total number of shares of Preferred Stock and/or Preferred Stock Equivalent
(and/or the aggregate initial conversion price of the convertible securities so to be offered) would purchase at such Current Market Price, and the denominator of which shall be the number of shares of Preferred Stock outstanding on such record
date, plus the number of additional shares of Preferred Stock and/or Preferred Stock Equivalent to be offered for subscription or purchase (or into which the convertible securities so to be offered are initially convertible). In case such
subscription price may be paid by delivery of consideration part or all of which is in a form other than cash, the value of such non-cash consideration shall be as determined in good faith by the Board of Directors, whose determination shall be
described in a statement filed with the Rights Agent. Shares of Preferred Stock owned by or held for the account of the Company shall not be deemed outstanding for the purpose of any such computation. Such adjustment shall be made successively
whenever such a record date is fixed, and in the event that such rights or warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed. 
 (c) In case the Company shall fix a record date for a distribution to all holders of Preferred Stock (including any such distribution made
in connection with a consolidation or merger in which the Company is the continuing corporation) of evidences of indebtedness, cash, assets (other than a dividend payable in Preferred Stock, but including any dividend payable in stock other than
Preferred Stock) or subscription rights or warrants (excluding those referred to in Section 11(b) hereof), the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately
prior to such record date by a fraction, the numerator of which shall be the Current Market Price per share of Preferred Stock on such record date, less the fair market value (as determined in good faith by the Board of Directors, whose
determination shall be described in a statement filed with the Rights Agent) of the portion of the cash, assets or evidences of indebtedness to be distributed or of such subscription rights or warrants applicable to a share of Preferred Stock and
the denominator of which shall be such Current Market Price per share of Preferred Stock. Such adjustments shall be made successively whenever such a record date is fixed, and in the event that such distribution is not so made, the Purchase Price
shall be adjusted to be the Purchase Price which would have been in effect if such record date had not been fixed. 
 (d)

 (i) For the purpose of any computation hereunder, other than computations made pursuant to Section 11(a)(iii) hereof,
the “Current Market Price” per share of Common Stock on any date shall be deemed to be the average of the daily closing prices per share of the Common Stock for the 30 consecutive Trading Days immediately prior to, but not
including, such date, and for purpose of computations made pursuant to Section 11(a)(iii) hereof, the “Current Market Price” per share of the Common Stock on any date shall be deemed to be the average of the daily closing prices per
share of the Common Stock for the 10 consecutive Trading Days immediately following, but not including, such date; provided, however, that in the event that the Current Market Price per share of the Common Stock is determined during a
period following the announcement by the issuer of the Common Stock of (i) any dividend or distribution on the Common Stock (other than a regular quarterly cash dividend and other than the Rights), (ii) any subdivision, combination or
reclassification of the Common Stock, and prior 

  

 18 

 
to the expiration of the requisite 30 Trading Day or 10 Trading Day period, as set forth above, after the ex-dividend date for such dividend or distribution,
or the record date for such subdivision, combination or reclassification occurs, 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, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to
securities listed or admitted to trading on NASDAQ or, if the shares of Common Stock are not listed or admitted to trading on NASDAQ, as reported in the principal consolidated transaction reporting system with respect to securities listed 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 sale price or,
if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by NASDAQ or such other system then in use, or, if on any such date the 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 of Directors. If on any such date no market maker is making a market in the Common Stock, the fair
value of such shares on such date as determined in good faith by the Board of Directors shall be used and shall be binding on the Rights Agent. If the Common Stock is not publicly held or not so listed or traded, “Current Market Price” per
share shall mean the fair value per share as determined in good faith by the Board of Directors, whose 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 (or one one-thousandth of a share) of
Preferred Stock shall be determined in the same manner as set forth above for the Common Stock in clause (i) of this Section 11(d) (other than the last sentence thereof). If the Current Market Price per share (or one one-thousandth of a
share) of Preferred Stock cannot be determined in the manner provided above or if the Preferred Stock is not publicly held or listed or traded in a manner described in clause (i) of this Section 11(d), the “Current Market Price”
per share of Preferred Stock shall be conclusively deemed to be an amount equal to 1,000 (as such number may be appropriately adjusted for such events as stock splits, stock dividends and recapitalizations with respect to the Common Stock occurring
after the date of this Rights Agreement) multiplied by the Current Market Price per share of the Common Stock and the “Current Market Price” per one one-thousandth of a share of Preferred Stock shall, be equal to the Current Market Price
per share of the Common Stock (as appropriately adjusted). If neither the Common Stock nor the Preferred Stock is publicly held or so listed or traded, “Current Market Price” shall mean the fair value per share as determined in good faith
by the Board of Directors, whose determination shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes. 
 (e) Anything herein to the contrary notwithstanding, no adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at least one percent (1%) in the Purchase
Price; provided, however, that any adjustments which by reason of this Section 11(e) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this
Section 11 shall be made to the nearest cent or to the nearest ten-thousandth of a share of Common Stock or other share or 

  

 19 

 
one-hundred-thousandth of a share of Preferred Stock, as the case may be. Notwithstanding the first sentence of this Section 11(e), any adjustment
required by this Section 11 shall be made no later than the earlier of (i) three years from the date of the transaction which mandates such adjustment, or (ii) the Expiration Date. 
 (f) If as a result of an adjustment made pursuant to Section 11(a)(ii) or Section 13(a) hereof, the holder of any Right
thereafter exercised shall become entitled to receive any shares of capital stock other than Preferred Stock, thereafter the number of such other shares so receivable upon exercise of any Right and the Purchase Price thereof shall be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the shares of Preferred Stock contained in Sections 11(a), (b), (c), (e), (g), (h), (i), (j), (k) and
(m) hereof, and the provisions of Sections 7, 9, 10, 13 and 14 hereof with respect to the Preferred Stock shall apply on like terms to any such other shares. 
 (g) All Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price hereunder shall evidence the right
to purchase, at the adjusted Purchase Price, the number of shares of Preferred Stock purchasable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided herein. 
 (h) Unless the Company shall have exercised its election as provided in Section 11(i), upon each adjustment of the Purchase Price as
a result of the calculations made in Sections 11(b) and (c), each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of one
one-thousandth of a share of Preferred Stock (calculated to the nearest one-hundred-thousandth) obtained by (i) multiplying (x) the number of one one-thousandth of a share of Preferred Stock covered by a Right immediately prior to this
adjustment, by (y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price, and (ii) dividing the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price.

 (i) The Company may elect on or after the date of any adjustment of the Purchase Price or any adjustment to the number of
shares of Preferred Stock for which a Right may be exercised made pursuant to Sections 11(a)(i), 11(b) or 11(c), to adjust the number of Rights in lieu of any adjustment in the number of shares of Preferred Stock purchasable upon the exercise
of a Right. Each of the Rights outstanding after the adjustment in the number of Rights shall be exercisable for the number of shares of Preferred Stock for which a Right was exercisable immediately prior to such adjustment. Each Right held of
record prior to such adjustment of the number of Rights shall become that number of Rights (calculated to the nearest one hundred-thousandth) obtained by dividing the Purchase Price in effect immediately prior to adjustment of the Purchase Price by
the Purchase Price in effect immediately after adjustment of the Purchase Price. The Company shall make a public announcement of its election to adjust the number of Rights, indicating the record date for the adjustment, and, if known at the time,
the amount of the adjustment to be made. The Company shall notify the Rights Agent whenever it makes a public announcement pursuant to this Section 11(i) and shall promptly give the Rights Agent a written notice of such announcement. This
record date may be the date on which the Purchase Price is adjusted or any day thereafter, but, if the Right Certificates have been issued, shall be at least 10 days later than the date of the public announcement. If Right Certificates 

  

 20 

 
have been issued, upon each adjustment of the number of Rights pursuant to this Section 11(i), the Company shall, as promptly as practicable, cause to
be distributed to holders of record of Right Certificates on such record date Right Certificates evidencing, subject to Section 14 hereof, the additional Rights to which such holders shall be entitled as a result of such adjustment, or, at the
option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Right Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the Company,
new Right Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment. Right Certificates so to be distributed shall be issued, executed and delivered by the Company, and countersigned and delivered by the
Rights Agent, in the manner provided for herein (and may bear, at the option of the Company, the adjusted Purchase Price) and shall be registered in the names of the holders of record of Right Certificates on the record date specified in the public
announcement. 
 (j) Irrespective of any adjustment or change in the Purchase Price or the number of shares 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 share and the number of shares which were expressed in the initial Right Certificate issued
hereunder. 
 (k) Before taking any action that would cause an adjustment reducing the Purchase Price below the then par
value, if any, of the shares of Common Stock, Preferred Stock or other capital stock issuable upon exercise of the Rights, the Company shall take any corporate action, including using its best efforts to obtain any required shareholder approvals,
which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock, Preferred Stock or other capital stock at such adjusted Purchase Price. If upon any
exercise of the Rights, a holder is to receive a combination of Common Stock and Common Stock Equivalents, a portion of the consideration paid upon such exercise, equal to at least the then par value of a share of Common Stock of the Company, shall
be allocated as the payment for each share of Common Stock of the Company so received. 
 (l) In any case in which this
Section 11 shall require that an adjustment in the Purchase Price be made effective as of a record date for a specified event, the Company may elect to defer (with prompt written notice thereof to the Rights Agent) until the occurrence of such
event the issuance to the holder of any Right exercised after such record date the shares of Preferred Stock and other capital stock or securities of the Company, if any, issuable upon such exercise over and above the shares of Preferred Stock and
other capital stock or securities of the Company, if any, issuable upon such exercise on the basis of the Purchase Price in effect prior to such adjustment; provided, however, that the Company shall deliver to such holder a due bill or
other appropriate instrument evidencing such holder’s right to receive such additional shares of Preferred Stock and other capital stock or securities upon the occurrence of the event requiring such adjustment. 
 (m) Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make such reductions in the
Purchase Price, in addition to those adjustments expressly permitted or required by this Section 11, as and to the extent that in their good faith 

  

 21 

 
judgment the Board of Directors shall determine to be advisable in order that any (i) consolidation or subdivision of the Preferred Stock,
(ii) issuance for cash of any shares of Preferred Stock at less than the Current Market Price, (iii) issuance for cash of shares of Preferred Stock or securities which by their terms are convertible into or exchangeable for shares of
Preferred Stock, (iv) stock dividends or (v) issuance of rights, options or warrants referred to in this Section 11, hereafter made by the Company to holders of its Preferred Stock shall not be taxable to such shareholders.

 (n) The Company covenants and agrees that it shall not, at any time after the Distribution Date, (i) consolidate with
any other Person, (ii) merge with or into any other Person, or (iii) sell or transfer (or permit any Subsidiary to sell or transfer), in one transaction or a series of related transactions, assets or earning power aggregating more than 50%
of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to, any other Person or Persons, if (x) at the time of or immediately after such consolidation, merger or sale there are any charter or by-law provisions or
any rights, warrants or other instruments or securities outstanding or agreements in effect which substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights or (y) prior to, simultaneously with or
immediately after such consolidation, merger or sale, the shareholders of the Person who constitutes, or would constitute, the “Principal Party” for purposes of Section 13(a) hereof shall have received a distribution of Rights
previously owned by such Person or any of its Affiliates and Associates. The Company shall not consummate any such consolidation, merger or sale unless prior thereto the Company and such other Person shall have executed and delivered to the Rights
Agent a supplemental agreement evidencing compliance with this subsection. 
 (o) The Company covenants and agrees that, after
the Distribution Date, it will not, except as permitted by Section 23, Section 24 or Section 27 hereof, take (or permit any Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable that such
action will diminish substantially or eliminate the benefits intended to be afforded by the Rights. 
 (p) Anything in this
Rights Agreement to the contrary notwithstanding, in the event that the Company shall at any time after the Record Date and prior to the Distribution Date (i) declare or pay any dividend on the outstanding shares of Common Stock payable in
shares of Common Stock, (ii) subdivide the outstanding shares of Common Stock, or (iii) combine the outstanding shares of Common Stock into a smaller number of shares, the number of Rights associated with each share of Common Stock then
outstanding, or issued or delivered thereafter, shall be proportionately adjusted so that the number of Rights thereafter associated with each share of Common Stock following any such event equals the result obtained by multiplying the number of
Rights associated with each share of Common Stock immediately prior to such event by a fraction, the numerator or which shall be the number of shares of Common Stock outstanding immediately prior to the occurrence of such event and the denominator
of which shall be the number of shares of Common Stock outstanding immediately following the occurrence of such event. 
 12.
Certification of Adjustments or Number of Shares. Whenever an adjustment is made or any event affecting the Rights or their exercisability (including, without limitation, an event which causes the Rights to become null and void) occurs as
provided in Sections 11 and 13 

  

 22 

 
hereof, the Company shall (a) promptly prepare a certificate signed by its Chief Executive Officer, its President or any Vice President and by the
Treasurer or any Assistant Treasurer or the Secretary or any Assistant Secretary of the Company setting forth such adjustment or describing such event, and a brief, reasonably detailed statement of the facts, computations and methodology accounting
for such adjustment or event, (b) 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 (c) mail a brief summary thereof to each holder of a Right
Certificate (or, if prior to the Distribution Date, to each holder of a certificate representing shares of Common Stock) in accordance with Section 26 hereof. Notwithstanding the foregoing sentence, the failure of the Company to give such
notice shall not affect the validity of or the force or effect of or the requirement for such adjustment. The Rights Agent shall be fully protected in relying on any certificate prepared by the Company pursuant to Sections 11 and 13 and on any
adjustment or statement therein contained and shall not be deemed to have knowledge of any such adjustment or event unless and until it shall have received such certificate. Any adjustment to be made pursuant to Sections 11 and 13 of this
Rights Agreement shall be effective as of the date of the event giving rise to such adjustment. 
 13. Consolidation, Merger or Sale or
Transfer of Assets or Earning Power. 
 (a) In the event that following the first occurrence of a Flip-In Event, directly
or indirectly, (x) the Company shall consolidate with, or merge with and into, any other Person or Persons and the Company, as the case may be, shall not be the surviving or continuing Person of such consolidation or merger, or (y) any
Person or Persons shall consolidate with, or merge with and into, the Company, and the Company shall be the continuing or surviving Person of such consolidation or merger and, in connection with such consolidation or merger, all or part of the
outstanding shares of Common Stock shall be changed into or exchanged for stock or other securities of any other Person or of the Company or cash or any other property other than, in the case of the transactions described in subparagraphs (x)
or (y), a merger or consolidation which would result in all of the Voting Power represented by the securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into
securities of the surviving entity) all of the Voting Power represented by the securities of the Company or such surviving entity outstanding immediately after such merger or consolidation and the holders of such securities not having changed as a
result of such transactions), or (z) the Company or one or more of its Subsidiaries shall sell, mortgage or otherwise transfer to any other Person or any Affiliate or Associate of such Person, in one transaction, or a series of related
transactions, assets or earning power aggregating more than 50% of the assets or earning power of the Company and its Subsidiaries (taken as a whole), then, on the first occurrence of any such event (a “Flip-Over Event”), proper
provision shall be made so that (i) each holder of a Right (other than Rights which have become null and void pursuant to Section 11(a)(ii) hereof) shall thereafter have the right to receive, upon the exercise thereof at the Purchase Price
(as theretofore adjusted in accordance with Section 11(a)(ii) hereof), in accordance with the terms of this Rights Agreement and in lieu of shares of Preferred Stock or Common Stock of the Company, such number of validly authorized and issued,
fully paid, non-assessable and freely tradeable shares of Common Stock of the Principal Party (as such term is hereinafter defined), not subject to any liens, encumbrances, rights of first refusal or other adverse claims, as shall equal the result
obtained by dividing the Purchase Price (as theretofore adjusted in accordance with Section 11(a)(ii) hereof) by 50% of the Current Market Price per 

  

 23 

 
share of the Common Stock of such Principal Party (determined pursuant to Section 11(d) hereof) on the date of consummation of such consolidation,
merger, sale or transfer; provided, however, that the Purchase Price (as theretofore adjusted in accordance with Section 11(a)(ii) hereof) and the number of shares of Common Stock of such Principal Party so receivable upon
exercise of a Right shall be subject to further adjustment as appropriate in accordance with Section 11(f) hereof to reflect any events occurring in respect of the Common Stock of such Principal Party after the occurrence of such consolidation,
merger, sale or transfer; (ii) such Principal Party shall thereafter be liable for, and shall assume, by virtue of such Flip-Over Event, all the obligations and duties of the Company pursuant to this Rights Agreement; (iii) the term
“Company” for all purposes of this Rights Agreement shall thereafter be deemed to refer to such Principal Party, it being specifically intended that the provisions of Section 11 hereof shall only apply to such Principal Party
following the first occurrence of a Flip-Over Event; and (iv) such Principal Party shall take such steps (including, but not limited to, the reservation of a sufficient number of shares of its Common Stock in accordance with Section 9
hereof) in connection with the consummation of any such transaction as may be necessary to assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to its shares of Common Stock thereafter
deliverable upon the exercise of the Rights; provided, however, that, upon the subsequent occurrence of any merger, consolidation, sale of all or substantially all assets, recapitalization, reclassification of shares, reorganization or
other extraordinary transaction in respect of such Principal Party, each holder of a Right shall thereupon be entitled to receive, upon exercise of a Right, such cash, shares, rights, warrants and other property which such holder would have been
entitled to receive had he, at the time of such transaction, owned the shares of Common Stock of the Principal Party purchasable upon the exercise of a Right, and such Principal Party shall take such steps (including, but not limited to, reservation
of shares of stock) as may necessary to permit the subsequent exercise of the Rights in accordance with the terms hereof for such cash, shares, rights, warrants and other property. 
 (b) “Principal Party” shall mean 
 (i) in the case of any transaction described in (x) or (y) of the first sentence of Section 13(a) hereof: (A) the
Person that is the issuer of the securities into which shares of Common Stock of the Company are converted in such merger or consolidation, or, if there is more than one such issuer, the issuer the Common Stock of which has the greatest aggregate
market value or (B) if no securities are so issued, (x) the Person that is the other party to the merger or consolidation and that survives said merger or consolidation, or, if there is more than one such Person, the Person the Common
Stock of which has the greatest market value or (y) if the Person that is the other party to the merger or consolidation does not survive the merger or consolidation, the Person that does survive the merger or consolidation (including the
Company if it survives); and 
 (ii) in the case of any transaction described in (z) of the first sentence in
Section 13(a) hereof, the Person that is the party receiving the greatest portion of the assets or earning power transferred pursuant to such transaction or transactions, or, if each Person that is a party to such transaction or transactions
receives the same portion of the assets or earning power so transferred or if the Person receiving the greatest portion of the assets or earning power cannot be determined, whichever of such Persons that is the issuer of Common Stock having the
greatest aggregate market value of shares outstanding; 

  

 24 

 
provided, however, that in any such case described in the foregoing paragraphs (b)(i) or (b)(ii), (1) if the Common Stock of such Person
is not at such time and has not been continuously over the preceding 12-month period registered under Section 12 of the Exchange Act, and such Person is a direct or indirect Subsidiary of another Person the Common Stock of which is and has been
so registered, the term “Principal Party” shall refer to such other Person, or (2) if such Person is a Subsidiary, directly or indirectly, of more than one Person, the Common Stocks of all of which are and have been so registered, the
term “Principal Party” shall refer to whichever of such Persons is the issuer of the Common Stock having the greatest market value of shares outstanding, or (3) if such Person is owned, directly or indirectly, by a joint venture
formed by two or more Persons that are not owned, directly or indirectly, by the same Person, the rules set forth in clauses (1) and (2) above shall apply to each of the owners having an interest in the joint venture as if the Person owned
by the joint venture was a Subsidiary of both or all of such joint venturers, and the Principal Party in each such case shall bear the obligations set forth in this Section 13 in the same ratio as its interest in such Person bears to the total
of such interests. 
 (c) The Company shall not consummate any consolidation, merger, sale, disposition or transfer referred
to in Section 13(a) unless the Principal Party shall have a sufficient number of authorized shares of its Common Stock that have not been issued or reserved for issuance to permit the exercise in full of the Rights in accordance with this
Section 13 and unless prior thereto the Company and the Principal Party involved therein shall have executed and delivered to the Rights Agent an agreement confirming that the requirements of Sections 13(a) and (b) hereof shall
promptly be performed in accordance with their terms and that such consolidation, merger, sale, disposition or transfer of assets shall not result in a default by the Principal Party under this Rights Agreement as the same shall have been assumed by
the Principal Party pursuant to Sections 13(a) and (b) hereof and further providing that, as soon as practicable after executing such agreement pursuant to this Section 13, the Principal Party at its own expense shall: 
 (i) prepare and file a registration statement under the Securities Act, if necessary, with respect to the Rights and the securities
purchasable upon exercise of the Rights on an appropriate form, use its best efforts to cause such registration statement to become effective as soon as practicable after such filing and use its best efforts to cause such registration statement to
remain effective (with a prospectus at all times meeting the requirements of the Securities Act) until the date of expiration of the Rights, and similarly comply with applicable state securities laws; 
 (ii) use its best efforts, if the Common Stock of the Principal Party shall become listed on a national securities exchange, to list (or
continue the listing of) the Rights and the securities purchasable upon exercise of the Rights on such securities exchange and, if the Common Stock of the Principal Party shall not be listed on a national securities exchange, to cause the Rights and
the securities purchased upon exercise of the Rights to be reported by NASDAQ or such other system then in use; 
 (iii)
deliver to holders of the Rights historical financial statements for the Principal Party which comply in all respects with the requirements for registration on Form 10 (or any successor form) under the Exchange Act; and 
  

 25 

 (iv) obtain waivers of any rights of first refusal or preemptive rights in respect of the
shares of Common Stock of the Principal Party subject to purchase upon exercise of outstanding Rights. 
 In the event that any of the transactions described
in Section 13(a) hereof shall occur at any time after the occurrence of a transaction described in Section 11(a)(ii) hereof, the Rights which have not theretofore been exercised shall thereafter be exercisable in the manner described in
Section 13(a). 
 (d) Furthermore, in case the Principal Party which is to be a party to a transaction referred to in
this Section 13 has a provision in any of its authorized securities or in its Articles of Incorporation or Bylaws or other instrument governing its corporate affairs, which provision would have the effect of (i) causing such Principal
Party to issue, in connection with, or as a consequence of, the consummation of a transaction referred to in this Section 13, shares of Common Stock of such Principal Party at less than the then Current Market Price per share (determined
pursuant to Section 11(d) hereof) or securities exercisable for, or convertible into, Common Stock of such Principal Party at less than such then current market price (other than to holders of Rights pursuant to this Section 13) or
(ii) providing for any special payment, tax or similar provisions in connection with the issuance of the Common Stock of such Principal Party pursuant to the provisions of Section 13; then, in such event, the Company hereby agrees with
each holder of Rights that it shall not consummate any such transaction unless prior thereto the Company and such Principal Party shall have executed and delivered to the Rights Agent a supplemental agreement providing that the provision in question
of such Principal Party shall have been cancelled, waived or amended, or that the authorized securities shall be redeemed, so that the applicable provision will have no effect in connection with, or as a consequence of, the consummation of the
proposed transaction. 
 14. Fractional Rights and Fractional Shares. 
 (a) The Company shall not be required to issue fractions of Rights or to distribute Right Certificates which evidence fractional Rights.
In lieu of such fractional Rights, there shall be paid to the holders of record 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 then current
market value of a whole Right. For the purposes of this Section 14(a), the then current market value of a Right shall be determined in the same manner as the Current Market Price of a share of Common Stock shall be determined pursuant to
Section 11(d) hereof. 
 (b) The Company shall not be required to issue fractions of shares of Preferred Stock or
Preferred Stock Equivalent (other than fractions which are integral multiples of one one-thousandth of a share of Preferred Stock) upon exercise of the Rights or to distribute certificates which evidence fractional shares of Preferred Stock
Equivalent (other than fractions which are integral multiples of one one-thousandth of a share of Preferred Stock). Fractions of shares of Preferred Stock in integral multiples of one one-thousandth of a share of Preferred Stock or Preferred Stock
Equivalent may, at the election of the Company, be evidenced by depositary receipts, pursuant to an appropriate agreement between the Company and a depositary selected by it, provided that such agreement shall provide that the holders of such
depositary receipts shall have all the rights, privileges and preferences to which they are entitled as 

  

 26 

 
Beneficial Owners of the shares of Preferred Stock or Preferred Stock Equivalent represented by such depositary receipts. In lieu of fractional shares of
Preferred Stock that are not integral multiples of one one-thousandth of a share of Preferred Stock or Preferred Stock Equivalent, the Company may pay to the registered holders of Right Certificates at the time such Rights are exercised as herein
provided an amount in cash equal to the same fraction of the current market value of one one-thousandth of a share of Preferred Stock or Preferred Stock Equivalent. For purposes of this Section 14(b), the current market value of one
one-thousandth of a share of Preferred Stock or Preferred Stock Equivalent shall be the Current Market Price of a share of Common Stock (as determined pursuant to Section 11(d)(ii) hereof) for the Trading Day immediately prior to the date of
such exercise. 
 (c) Following the occurrence of a Flip-In Event, the Company shall not be required to issue fractions of
shares or units of Common Stock or Common Stock Equivalents or other securities upon exercise of the Rights or to distribute certificates which evidence fractional shares of such Common Stock or Common Stock Equivalents or other securities. In lieu
of fractional shares or units of such Common Stock or Common Stock Equivalents or other securities, the Company may pay to the registered holders of Right Certificates at the time such Rights are exercised as herein provided an amount in cash equal
to the same fraction of the Current Market Value of a share or unit of such Common Stock or Common Stock Equivalent or other securities. For purposes of this Section 14(c), the Current Market Value shall be determined in the manner set forth in
Section 11(d) hereof for the Trading Day immediately prior to the date of such exercise and, if such Common Stock Equivalent is not traded, each such Common Stock Equivalent shall have the value of one one-thousandth of a share of Preferred
Stock. 
 (d) The holder of a Right by the acceptance of a Right expressly waives his right to receive any fractional Right or
any fractional shares upon exercise of a Right. 
 (e) Whenever a payment for fractional Rights or fractional shares or other
securities of the Company is to be made by the Rights Agent, the Company shall (i) promptly prepare and deliver to the Rights Agent a certificate setting forth in reasonable detail the facts related to such payment 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. 
 15. Rights of Action. As of the Record Date, all rights of action in respect of this Right Agreement, other than any rights of action vested in the Rights Agent pursuant to Sections 18 and 20 hereunder,
are vested in the respective holders of record of the Right Certificates (and, prior to the Distribution Date, the holders of record of the Common Stock); and any holder of record of any Right Certificate (or, prior to the Distribution Date, of the
Common Stock), without the consent of the Rights Agent or of the holder of any other Right Certificate (or, prior to the Distribution Date, of the Common Stock), may, in his own behalf and for his own benefit, enforce, and may institute and maintain
any suit, action or proceeding against the Company or any other Person to enforce, or otherwise act in respect of, his right to exercise the Rights evidenced by such Right Certificate in the manner provided in such Right Certificate and in this
Rights Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an 

  

 27 

 
adequate remedy at law for any breach of this Rights Agreement and, accordingly, that they will be entitled to specific performance of the obligations under,
and injunctive relief against actual or threatened violations of, the obligations of any Person subject to this Rights Agreement. Holders of Rights shall be entitled to recover the reasonable costs and expenses, including attorneys’ fees,
incurred by them in any action to enforce the provisions of this Rights Agreement. 
 16. Agreement of Right Holders. Every holder of
a Right by accepting the same consents and agrees with the Company and the Rights Agent and with every other holder of a Right that: 
 (a) prior to the Distribution Date, the Rights will not be evidenced by a Right Certificate and will be transferable only in connection with the transfer of Common Stock; 
 (b) after the Distribution Date, the Right Certificates will be transferable only on the registry books of the Rights Agent if surrendered
at the office of the Rights Agent designated for such purpose, duly endorsed or accompanied by a proper instrument of transfer with all required certificates completed; 
 (c) the Company and the Rights Agent may deem and treat the Person in whose name the Right Certificate (or, prior to the Distribution
Date, the associated Common Stock certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the Right Certificate or the associated Common Stock certificate
made by anyone other than the Company or the Rights Agent or the transfer agent of the Common Stock) for all purposes whatsoever, and neither the Company nor the Rights Agent shall be affected by any notice to the contrary; and 
 (d) notwithstanding anything in this Rights Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability
to any holder of a Right or other Person as a result of its inability to perform any of its obligations under this Rights Agreement by reason of any preliminary or permanent injunction or other order, judgment, decree or ruling (whether
interlocutory or final) issued by a court 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, however, that the Company must use its best efforts to have any such injunction, order, judgment, decree or ruling lifted or otherwise overturned as soon as possible.

 17. Right Certificate Holder Not Deemed a Shareholder. No holder of a Right, as such, shall be entitled to vote, receive dividends
in respect of or be deemed for any purpose to be the holder of Common Stock or any other securities of the Company which may at any time be issuable upon the exercise of the Rights, nor shall anything contained herein or in any Right Certificate be
construed to confer upon the holder of any Right Certificate, as such, any of the rights of a shareholder of the Company or any right to vote in 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, or to receive notice of meetings or other actions affecting shareholders (except as provided in Section 25 hereof), or to receive dividends or subscription rights in respect of any such stock or
securities, or otherwise, until the Right or Rights evidenced by such Right Certificate shall have been exercised in accordance with the provisions hereof. 
  

 28 

 18. Concerning the Rights Agent. 
 (a) The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to
time, on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the preparation, negotiation, delivery, administration, amendment and execution of this Rights Agreement and the exercise and
performance of its duties hereunder. The Company also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability or expense incurred without gross negligence, bad faith or willful misconduct on the part of the
Rights Agent for any thing done or omitted to be done by the Rights Agent in connection with the acceptance and administration of this Rights Agreement, including the cost, counsel fees and expenses of defending against any claim of liability in the
premises. The indemnity provided herein shall survive the expiration of the Rights and the termination of this Rights Agreement. Notwithstanding anything in this Rights Agreement to the contrary, in no event shall the Rights Agent be liable for
special, indirect or consequential 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 damage and regardless of the form of action. 

(b) The Rights Agent shall be protected and shall incur no liability for or in respect of any action taken, suffered or omitted by it
in connection with its administration of this Rights Agreement in reliance upon any Right Certificate, certificate for Common Stock or other securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit,
letter, notice, direction, consent, certificate, statement or other paper or document believed by it to be genuine and to be signed, executed and, where necessary, guaranteed, verified or acknowledged, by the proper Person or Persons. 
 19. Merger or Consolidation or Changed Name of Rights Agent. 
 (a) Any Person into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any Person
resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to the shareholder services business of the Rights Agent or any successor Rights Agent, shall be the
successor to the Rights Agent under this Rights Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided that such Person would be eligible for appointment as a successor Rights
Agent under the provisions of Section 21 hereof. In case at the time such successor Rights Agent shall succeed to the agency created by this Rights Agreement, any of the Right Certificates shall have been countersigned but not delivered, any
such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Right Certificates so countersigned; and, in case at that time any of the Right Certificates shall not have been countersigned, any successor
Rights Agent may countersign such Right Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such Right Certificates shall have the full force provided in the Right
Certificates and in this Rights Agreement. 
  

 29 

 (b) In case at any time the name of the Rights Agent shall be changed and at such time
any of the Right Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver such Right Certificates so countersigned; and in case at that time any of the Right
Certificates shall not have been countersigned, the Rights Agent may countersign such Right Certificates either in its prior name or in its changed name; and in all such cases such Right Certificate shall have the full force provided in the Right
Certificates and in this Rights Agreement. 
 20. Duties of Rights Agent. The Rights Agent undertakes the duties and obligations
imposed by this Rights Agreement upon the following terms and conditions, by all of which the Company and the holders of Right Certificates, by their acceptance thereof, shall be bound: 
 (a) The Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the opinion of such counsel shall be
full and complete authorization and protection to the Rights Agent as to any action taken or omitted to be taken by it in good faith and in accordance with such opinion. 
 (b) Whenever in the performance of its duties under this Rights Agreement the Rights Agent shall deem it necessary or desirable that any
fact or matter (including, without limitation, the identity of any Acquiring Person and the determination of Current Market Price) be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless
other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by certificate signed by the President or any Vice President and by the Treasurer or any Assistant Treasurer or the
Secretary or any Assistant Secretary of the Company and delivered to the Rights Agent; and such certificate shall be full authorization to the Rights Agent for any action taken or suffered in good faith by it under the provisions of this Rights
Agreement in reliance upon such certificate. 
 (c) The Rights Agent shall be liable hereunder only for its own gross
negligence, bad faith or willful misconduct. 
 (d) The Rights Agent shall not be liable for or by reason of any of the
statements of fact or recitals contained in this Rights Agreement or in the Right Certificates (except its countersignature thereof) or be required to verify the same, but all such statements and recitals are and shall be deemed to have been made by
the Company only. 
 (e) The Rights Agent shall not be under any responsibility in respect of the validity of this Rights
Agreement or the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Right Certificate (except its countersignature thereof); nor shall it be responsible for any
breach by the Company of any covenant or condition contained in this Rights Agreement or in any Right Certificate; nor shall it be responsible for any adjustment required under the provisions of Sections 11, 13, 23 or 24 hereof or responsible
for the manner, method or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment (except with respect to the exercise of Rights evidenced by Right Certificates after receipt of a
Certificate furnished pursuant to Section 12 describing any such adjustment); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any 

  

 30 

 
shares of Common Stock to be issued pursuant to this Rights Agreement or any Right Certificate or as to whether any shares of Common Stock will, when issued,
be validly authorized and issued, fully paid and nonassessable. 
 (f) The Company agrees that it will perform, execute,
acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights
Agent of the provisions of this Rights Agreement. 
 (g) The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from the Chairman of the Board, the Chief Executive Officer, the President or any Vice President or the Secretary or any Assistant Secretary or the Treasurer or any Assistant
Treasurer of the Company, and to apply to such officers for advice or instructions in connection with its duties, and it shall not be liable for any action taken or suffered to be taken by it in good faith in accordance with instructions of any such
officer. Any application by the Rights Agent for written instructions from the Company may, at the option of the Rights Agent, set forth in writing any action proposed to be taken or omitted by the Rights Agent under this Rights Agreement and the
date on and/or after which such action shall be taken or such omission shall be effective. Subject to Section 20(c) hereof, the Rights Agent shall not be liable for any action taken by, or omission of, the Rights Agent in accordance with a
proposal included in any such application on or after the date specified in such application (which date shall not be less than five Business Days after the date any officer of the Company actually receives such application, unless any such officer
shall have consented in writing to an earlier date) unless, prior to taking any such action (or the effective date in the case of an omission), the Rights Agent shall have received written instructions in response to such application specifying the
action to be taken or omitted. 
 (h) The Rights Agent and any shareholder, director, officer or employee of the Rights Agent
may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and
freely as though it were not the Rights Agent under this Rights Agreement. Nothing herein shall preclude the Rights Agent 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
or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company resulting from any such act, default,
neglect or misconduct, provided reasonable care was exercised in the selection and continued employment thereof. 
 (j) No
provision of this Rights Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of its rights if there shall be
reasonable grounds for believing that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it. 
  

 31 

 (k) If, with respect to any Right Certificate surrendered to the Rights Agent for
exercise or transfer, the certificate contained in the form of assignment or the form of election to purchase set forth on the reverse thereof, as the case 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 of transfer without first consulting with the Company. 
 21. Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this Rights Agreement upon 30 days’ notice in writing, or such earlier
period as shall be agreed to in writing, mailed to the Company and to each transfer agent of the Common Stock by registered or certified mail, and to the holders of the Right Certificates by first-class mail. The Company may remove the Rights Agent
or any successor Rights Agent (with or without cause) upon 30 days’ notice in writing, or such earlier period as shall be agreed to in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer
agent of the Common Stock by registered or certified mail, and to the holders of the Right Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a
successor to the Rights Agent. Notwithstanding the foregoing provisions of this Section 21, in no event shall the resignation or removal of a Rights Agent be effective until a successor Rights Agent shall have been appointed and have accepted
such appointment. If the Company shall fail 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 incumbent Rights Agent or the holder of record 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 and doing business under the laws of the United States or any
State thereof, in good standing, which is authorized under such laws to exercise corporate trust or stock transfer powers and is subject to supervision or examination by federal or state authority and which has at the time of its appointment as
Rights Agent a combined capital and surplus of at least $50,000,000 or (b) an Affiliate controlled by a Person described in clause (a) of this sentence. After appointment, the successor Rights Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it
hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment the Company shall file notice thereof in writing with the predecessor Rights Agent
and each transfer agent of the Common Stock, and mail a notice thereof in writing to the registered holders of the Right Certificates. Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not affect
the legality or validity of the resignation, replacement or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 
 22. Issuance of New Right Certificates. Notwithstanding any of the provisions of this Rights Agreement or of the Rights to the contrary, the Company may, at its option, issue new Right Certificates evidencing
Rights in such form as may be approved by its Board of Directors to reflect any adjustment or change in the Purchase Price per share and the number or kind or 

  

 32 

 
class of shares of stock or other securities or property purchasable under the Right Certificates made in accordance with the provisions of this Rights
Agreement. In addition, in connection with the issuance or sale of shares of Common Stock following the Distribution Date and prior to the redemption or expiration of the Rights, the Company shall, with respect to shares of Common Stock so issued or
sold pursuant to the exercise of stock options or under any employee plan or arrangement, or upon the exercise, conversion or exchange of securities hereinafter issued by the Company, in each case existing prior to the Distribution Date, issue Right
Certificates representing the appropriate number of Rights in connection with such issuance or sale; provided, however, that (i) no such Right Certificate shall be issued if, and to the extent that, the Company shall be advised by
counsel that such issuance would create a significant risk of material adverse tax consequences to the Company or the Person to whom such Right Certificate would be issued, and (ii) no such Right Certificate shall be issued, if, and to the
extent that, appropriate adjustment shall otherwise have been made in lieu of the issuance thereof. 
 23. Redemption. 
 (a) The Board of Directors may, at its option, at any time prior to the earlier of (x) the first occurrence of a Flip-In Event or
(y) the Close of Business on the Expiration Date, redeem all but not less than all the then-outstanding Rights at a redemption price of $0.001 per Right, as such amount may be appropriately adjusted to reflect any stock split, stock dividend or
similar transaction occurring after the date hereof (such redemption price being hereinafter referred to as the “Redemption Price”). 
 (b) Immediately upon the action of the Board of Directors ordering the redemption of the Rights (or at such later time as the Board of Directors may establish for the effectiveness of such redemption), and without any
further action and without any notice, the right to exercise the Rights will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price. The Company shall promptly give public notice of any such
redemption (with prompt written notice thereof to the Rights Agent); provided, however, that the failure to give, or any defect in, any such notice shall not affect the legality or validity of such redemption. Within 10 days after such
action of the Board of Directors ordering the redemption of the Rights (or such later time as the Board of Directors may establish for the effectiveness of such redemption), the Company shall mail a notice of redemption to all the holders of the
then-outstanding Rights at their last addresses as they appear upon the registry books of the Rights Agent or, prior to the 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 shall state the method by which the payment of the Redemption Price will be made. The failure to give notice required by this
Section 23(b) or any defect therein shall not affect the legality or validity of the action taken by the Company. 
 (c)
In the case of a redemption permitted under Section 23(a) hereof, the Company may, at its option, discharge all of its obligations with respect to the Rights by (i) issuing a press release announcing the manner of redemption of the Rights
and (ii) mailing payment of the Redemption Price to the registered holders of the Rights at their last addresses as they appear on the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer
agent of the Common Stock, and upon such action, all outstanding Right Certificates shall be null and void without any further action by the Company. 
  

 33 

 24. Exchange of Rights for Common Stock. 
 (a) The Board of Directors may, at its option, at any time after the occurrence of a Flip-In Event, exchange all or part of the
then-outstanding and exercisable Rights (which (i) shall not include Rights that have become null and void pursuant to the provisions of Section 11(a)(ii) and (ii) shall include, without limitation, any Rights issued after the
Distribution Date in accordance with Section 22 hereof) for shares of Common Stock at an exchange ratio of one share of Common Stock per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring
after the date hereof (the “Exchange Ratio”). Notwithstanding the foregoing the Board of Directors shall not be empowered to effect such exchange at any time after any Person (other than an Exempt Person), together with all
Affiliates and Associates of such Person, becomes the Beneficial Owner of shares of Common Stock aggregating 50% or more of the shares of Common Stock then outstanding. From and after the occurrence of an event specified in Section 13(a)
hereof, any Rights that theretofore have not been exchanged pursuant to this Section 24(a) shall thereafter be exercisable only in accordance with Section 13 and may not be exchanged pursuant to this Section 24(a). 
 (b) Immediately upon the action of the Board of Directors ordering the exchange of any Rights pursuant to subsection (a) of this
Section 24 and without any further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights shall be to receive that number of shares of Common Stock equal to the
number of such Rights held by such holder multiplied by the Exchange Ratio. The Company shall promptly give public notice of any such exchange (with prompt written notice of such exchange to the Rights Agent); provided, however, that
the failure to give, or any defect in, such notice shall not affect the legality or validity of such exchange. The Company promptly shall mail a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear
upon the registry books of the Rights Agent. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which the exchange of
the shares of Common Stock for Rights will be effected and, in the event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which
have become null and void pursuant to the provisions of Section 11(a)(ii) hereof) held by each holder of Rights. 
 (c)
In any exchange pursuant to this Section 24, the Company, at its option, may substitute, and, in the event that there shall not be sufficient shares of Common Stock issued but not outstanding or authorized but unissued to permit any exchange of
Rights as contemplated in accordance with this Section 24, the Company shall substitute to the extent of such insufficiency, for each share of Common Stock that would otherwise be issuable upon exchange of a Right, a number of shares of
Preferred Stock or Preferred Stock Equivalent or fractions thereof having an aggregate current per share market price (determined pursuant to Section 11(d) hereof) equal to the current per share market price of one share of Common Stock
(determined pursuant to Section 11(d) hereof) as of the date of the Flip-In Event. 
  

 34 

 (d) In the event that there shall not be sufficient shares of Common Stock issued but not
outstanding or authorized but unissued to permit any exchange of Rights as contemplated in accordance with this Section 24, the Company shall take all such action as may be necessary to authorize additional shares of Common Stock for issuance
upon exchange of the Rights. 
 (e) The Company shall not be required to issue fractions of shares of Common Stock or to
distribute certificates which evidence fractional shares of Common Stock. In lieu of such fractional shares of Common Stock, the Company shall pay to the registered holders of the Right Certificates with regard to which such fractional shares of
Common Stock would otherwise be issuable an amount in cash equal to the same fraction of the current market value of a whole share of Common Stock. For the purposes of this paragraph (d), the current market value of a whole share of Common
Stock shall be the Current Market Price of a share of Common Stock (as defined in Section 11(d) hereof for the purposes of computations made other than pursuant to Section 11(a)(iii)) for the Trading Day immediately prior to the date of
exchange pursuant to this Section 24. 
 25. Notice of Proposed Actions. 
 (a) In case the Company, after the Distribution Date, shall propose (i) to effect any of the transactions referred to in
Section 11(a)(i) or to pay any dividend to the holders of record of its Preferred Stock payable in stock of any class or to make any other distribution to the holders of record of its Preferred Stock (other than a regular periodic cash
dividend), or (ii) to offer to the holders of record of its Preferred Stock or options, warrants, or other rights to subscribe for or to purchase shares of Preferred Stock (including any security convertible into or exchangeable for Preferred
Stock) or shares of stock of any other class or any other securities, options, warrants, convertible or exchangeable securities or other rights, or (iii) to effect any reclassification of its Preferred Stock or any recapitalization or
reorganization of the Company, or (iv) to effect any consolidation or merger with or into, or to effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one or more transactions,
of more than 50% of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to, any other Person or Persons, 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 to each holder of record of a Right Certificate, in accordance with Section 26 hereof, notice of such proposed action, which shall specify the record date for the purposes of such transaction referred
to in Section 11(a)(i), or such dividend or distribution, or the date on which such reclassification, recapitalization, reorganization, consolidation, merger, sale or transfer of assets, disposition, liquidation, dissolution or winding up is to
take place and the record date for determining participation therein by the holders of record 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 clause (i) or
(ii) above at least 10 days prior to the record date for determining holders of record of the Preferred Stock for purposes of such action, and in the case of any such other action, at least 10 days prior to the date of the taking of
such proposed action or the date of participation therein by the holders of record of Preferred Stock, whichever shall be the earlier. 
  

 35 

 (b) In case any of the transactions referred to in Section 11(a)(ii)(A) or
(C) or Section 13 of this Rights Agreement are proposed, then, in any such case, the Company shall as soon as practicable thereafter give to the Rights Agent and to each holder of Rights, in accordance with Section 26 hereof, notice
of the proposal of such transaction at least 10 days prior to consummating such transaction, which notice shall specify the proposed event and the consequences of the event to holders of Rights under Section 11(a)(ii)(A) or (C) or
Section 13 hereof, as the case may be, and, upon consummation of such transaction, or any transaction contemplated by Section 11(a)(ii)(B) shall similarly give notice thereof to each holder of Rights. 
 (c) The failure to give notice required by this Section 25 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. Notices. Notices or demands authorized by this Rights Agreement
to be given or made by the Rights Agent or by the holder of record of any Right Certificate or Right to or on behalf of the Company shall be sufficiently given or made if in writing and sent by first-class mail, postage prepaid, addressed (until
another address is filed in writing with the Rights Agent) as follows: 
 Northstar Neuroscience, Inc. 
 2401 Fourth Avenue, Suite 300 
 Seattle,
Washington 98121 
 Attention: Chief Financial Officer 
 Subject to the provisions of Section 21 hereof, any notice or demand authorized by this Rights Agreement to be given or made by the Company or by the holder of record of any Right Certificate or Right to or on the Rights Agent shall be
sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Company) as follows: 
 Registrar and Transfer Company 
 10 Commerce Drive 
 Cranford, New Jersey 07016 
 Attention: Fausto
Rodriguez 
 Notices or demands authorized by this Rights Agreement to be given or made by the Company or the Rights Agent to the holder of record of any
Right Certificate or Right shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as it appears upon the registry books of the Rights Agent or, prior to the
Distribution Date, on the registry books of the Transfer Agent. 
 27. Supplements and Amendments. Except as otherwise provided
herein, for so long as the Rights are then redeemable, the Company may in its sole and absolute discretion supplement or amend any provision of this Rights Agreement in any respect without the approval of any holders of the Rights, any such
supplement or amendment to be evidenced by a writing signed by the Company and the Rights Agent. At any time when the Rights are no longer redeemable, except as provided in the penultimate sentence of this Section 27, the Company may supplement
or amend this Rights Agreement without the approval of any holders of Right Certificates in order to (i) cure any ambiguity, (ii) correct or supplement any provision contained 

  

 36 

 
herein which may be defective or inconsistent with any other provisions herein, (iii) shorten or lengthen any time period hereunder, or (iv) change
or supplement the provisions hereunder in any manner which the Company may deem necessary or desirable, any such supplement or amendment to be evidenced by a writing signed by the Company and the Rights Agent; provided that no such supplement
or amendment shall adversely affect the interests of the holders of Rights as such (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person), and no such amendment may cause the Rights again to become redeemable or cause
the Rights Agreement again to become amendable other than in accordance with this sentence. Upon the delivery of a certificate from an appropriate officer of the Company that states that the proposed supplement or amendment complies with this
Section 27, the Rights Agent shall execute such supplement or amendment. Prior to the Distribution Date, the interests of the holders of Rights shall be deemed coincident with the interests of the holders of Common Stock. 
 28. Successors. All of the covenants and provisions of this Rights Agreement by or for the benefit of the Company or the Rights Agent shall bind
and inure to the benefit of their respective successors and assigns hereunder. 
 29. Benefits of this Rights Agreement. Nothing in
this Rights Agreement shall be construed to give to any Person other than the Company, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Stock) any legal or equitable right, remedy
or claim under this Rights Agreement; this Rights Agreement shall be for the sole and exclusive benefit of the Company, the Rights Agent and the holders of record of the Right Certificates (and, prior to the Distribution Date, the Common Stock).

 30. Determinations and Actions by the Board of Directors. The Board of Directors shall have the exclusive power and authority to
administer this Rights Agreement and to exercise the rights and powers specifically granted to the Board of Directors or to the Company, or as may be necessary or advisable in the administration of this Rights Agreement, including, without
limitation, the right and power to (i) interpret the provisions of this Rights Agreement and (ii) make all determinations deemed necessary or advisable for the administration of this Rights Agreement (including, without limitation, a
determination to redeem or not redeem the Rights or to amend or not amend this Rights Agreement). All such actions, calculations, interpretations and determinations (including, for purposes of clause (y) below, all omissions with respect to the
foregoing) which are done or made by the Board of Directors in good faith, including but not limited to those made under Sections 1 and 11 hereunder, (x) shall be final, conclusive and binding on the Company, the Rights Agent, the holders of
the Rights, as such, and all other Persons, and (y) not subject the Board to any liability to the holders of the Rights. 
 31. Three
Year Independent Director Evaluation. A committee of the Company’s Board of Directors shall review this Rights Agreement in order to consider whether the maintenance of this Rights Agreement continues to be in the best interests of the
Company and its shareholders. Such committee shall conduct such review periodically when, as and in such manner as the committee deems appropriate, after giving due regard to all relevant circumstances; provided, however, that the
committee shall take such action at least every three years following the date hereof. Following each such review, such committee will report its conclusions to the full Board of Directors, including any recommendation in light thereof as to whether
this Rights Agreement should be modified or the Rights should be redeemed. Such 

  

 37 

 
committee shall be comprised only of directors of the Company who shall have been determined by the Company’s Board of Directors to be independent under
NASDAQ listing standards. Such committee is authorized to retain such legal counsel, financial advisors and other advisors as the committee deems appropriate in order to assist the committee in carrying out its foregoing responsibilities under this
Rights Agreement. Such committee shall initially be the Nominating and Corporate Governance Committee of the Company’s Board of Directors, provided that the Board of Directors may, at its discretion, delegate this review to another committee of
independent directors pursuant to this provision. 
 32. Governing Law. This Rights Agreement and each Right Certificate issued
hereunder shall be deemed to be a contract made under the laws of the State of Washington and for all purposes shall be governed by and construed in accordance with the laws of such state applicable to contracts to be made solely by residents of
such state and performed entirely within such state. 
 33. Counterparts. This Rights Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 
 34. Descriptive Headings. Descriptive headings of the several sections of this Rights Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof. 
 35. Severability. If any term, provision, covenant
or restriction of this Rights Agreement is held by a court of competent jurisdiction or other authority to be invalid, illegal or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Rights Agreement shall remain
in full force and effect and shall in no way be affected, impaired or invalidated. 
  

 38 

 IN WITNESS WHEREOF, the parties hereto have caused this Rights Agreement to be duly executed, and their
seals affixed and attested (if applicable), all as of the date and year first above written. 
 [SEAL] 
  

													
	ATTEST:	 		 	NORTHSTAR NEUROSCIENCE, INC.
					
	By:	 	/s/ Raymond N. Calvert	 		 	By:	 	/s/ John S. Bowers Jr.
		 	Name:	 	Raymond N. Calvert	 		 		 	Name:	 	John S. Bowers Jr.
		 	Title:	 	Vice President, Finance, Chief Financial Officer, and Secretary	 		 		 	Title:	 	President and Chief Executive Officer

 [SEAL] 
  

													
	ATTEST:	 		 	REGISTRAR AND TRANSFER COMPANY
					
	By:	 	/s/ Mary Rose Cascaes	 		 	By:	 	/s/ William P. Tatler
		 	Name:	 	Mary Rose Cascaes	 		 		 	Name:	 	William P. Tatler
		 	Title:	 	Executive Vice President and Assistant Secretary	 		 		 	Title:	 	Vice President

  

 39 

 ARTICLES OF AMENDMENT 
 OF 
 NORTHSTAR NEUROSCIENCE, INC. 
 Pursuant to RCW 23B.10.060 of the Washington Business Corporation Act (the “Act”), the undersigned corporation hereby submits the
following amendment to the corporation’s Amended and Restated Articles of Incorporation. 
 1. The name of the corporation is Northstar
Neuroscience, Inc. 
 2. Effective upon the filing of these Articles of Amendment with the Secretary of State of the State of Washington, a
new series of preferred stock, $0.001 par value, is hereby established and designated as Series A Preferred Stock (the “Series A Preferred”), and the preferences, limitations and relative rights of such Series A
Preferred shall be as set forth on Exhibit A attached hereto. 
 3. The date of adoption of such amendment was May 21, 2008.

 4. The amendment was duly adopted by the board of directors pursuant to the authority expressly granted to and vested in the board of
directors by Section 4.3 of Article 4 of the corporation’s Amended and Restated Articles of Incorporation; shareholder approval was not required pursuant to the provisions of RCW 23B.06.020 and 23B.10.020 of the Act. 
 5. These Articles of Amendment will be effective upon filing. 
 DATED: May 21, 2008. 
  

			
	NORTHSTAR NEUROSCIENCE, INC.
		
	By:	 	/s/ John S. Bowers Jr.
		 	John S. Bowers Jr.
		 	President and Chief Executive Officer

 EXHIBIT A 
 NORTHSTAR NEUROSCIENCE, INC. 
 DESIGNATION OF RELATIVE RIGHTS AND PREFERENCES 
 OF THE SERIES A PREFERRED STOCK 
 4.3A Series A
Preferred Stock. 
 4.3A.1. Designation and Amount. The shares of such series shall be designated as “Series A Preferred
Stock” (the “Series A Preferred”), $0.001 par value per share, and the number of shares constituting such series shall be 50,000. 
 4.3A.2. Dividends and Distributions. 
 (A) The dividend rate on the shares of Series A
Preferred shall be for each quarterly dividend (hereinafter referred to as a “quarterly dividend period”), which quarterly dividend periods shall commence on January 1, April 1, July 1 and October 1 each year (each such
date being referred to herein as a “Quarterly Dividend Payment Date”) (or in the case of original issuance, from the date of original issuance) and shall end on and include the day next preceding the first date of the next quarterly
dividend period, at a rate per quarterly dividend period (rounded to the nearest cent) subject to the provisions for adjustment hereinafter set forth, equal to 1,000 times the aggregate per share amount of all cash dividends, and
1,000 times the aggregate per share amount (payable in cash, based upon the fair market value at the time the non-cash dividend or other distribution is declared as determined in good faith by the Board of Directors) of all non-cash dividends
or other distributions other than a dividend payable in shares of Common Stock or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise), declared (but not withdrawn) on the Common Stock, par value $0.001 per
share, of the corporation (the “Common Stock”) during the immediately preceding quarterly dividend period, or, with respect to the first quarterly dividend period, since the first issuance of any share or fraction of a share of
Series A Preferred. In the event this corporation shall at any time after June 2, 2008 (the “Rights Declaration Date”) (i) declare any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the
outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the amount to which holders of shares of Series A Preferred were entitled immediately prior to such event under
clause (b) of the preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number
of shares of Common Stock that were outstanding immediately prior to such event. 
 (B) Dividends shall begin to accrue and be
cumulative on outstanding shares of Series A Preferred from the Quarterly Dividend Payment Date next preceding the date of issue of such shares of Series A Preferred, unless the date of issue of such shares is prior to the record date for the first
Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the
determination of holders of shares of Series A Preferred entitled to receive a quarterly dividend and before such Quarterly 

  

 1 

 
Dividend Payment Date, in either of which events such dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued
but unpaid dividends shall not bear interest. Dividends paid on the shares of Series A Preferred in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share
basis among all such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Series A Preferred entitled to receive payment of a dividend or distribution declared thereon, which
record date shall be no more than 45 days prior to the date fixed for the payment thereof. 
 4.3A.3. Voting Rights. The holders
of shares of Series A Preferred shall have the following voting rights: 
 (A) Subject to the provision for adjustment
hereinafter set forth, each share of Series A Preferred shall entitle the holder thereof to 1,000 votes on all matters submitted to a vote of the shareholders of the corporation. In the event the corporation shall at any time after the Rights
Declaration Date (i) declare any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such
case the number of votes per share to which holders of shares of Series A Preferred were entitled immediately prior to such event shall be adjusted by multiplying such number by a fraction the numerator of which is the number of shares of Common
Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
 (B) Except as otherwise provided herein, in the Articles of Incorporation or Bylaws, the holders of shares of Series A Preferred and the
holders of shares of Common Stock shall vote together as one class on all matters submitted to a vote of shareholders of the corporation. 
 (C) Except as set forth herein, in the Articles of Incorporation and in the Bylaws, holders of Series A Preferred 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. 
 4.3A.4. Reacquired Shares.
Any shares of Series A Preferred purchased or otherwise acquired by the corporation in any manner whatsoever shall be retired and canceled promptly after the acquisition thereof. All such shares shall upon their cancellation become authorized but
unissued shares of Preferred Stock and may be reissued as part of a new series of Preferred Stock to be created by resolution or resolutions of the Board of Directors, subject to the conditions and restrictions on issuance set forth herein.

 4.3A.5. Liquidation, Dissolution or Winding Up. 
 (A) In the event of any voluntary or involuntary liquidation, dissolution or winding up of the corporation, the holders of the Series A
Preferred shall be entitled to receive an amount per share, subject to the provision for adjustment hereinafter set forth, equal to 1,000 times the aggregate amount to be distributed per share to holders of Common Stock. In 

  

 2 

 
the event the corporation shall at any time after the Rights Declaration Date (i) declare any dividend on Common Stock payable in shares of Common
Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the amount to which holders of shares of Series A Preferred were entitled immediately
prior to such event pursuant to clause (b) of the preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
 4.3A.6.
Consolidation, Merger, etc. In case the corporation shall enter into any consolidation, merger, combination or other transaction in which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any
other property, then in any such case the shares of Series A Preferred shall at the same time be similarly exchanged or changed in an amount per share (subject to the provision for adjustment hereinafter set forth) equal to 1,000 times the
aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed or exchanged. In the event the corporation shall at any time after the Rights
Declaration Date (i) declare any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such
case the amount set forth in the preceding sentence with respect to the exchange or change of shares of Series A Preferred shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
 4.3A.7. No Redemption. The shares of Series A Preferred shall not be redeemable. 
 4.3A.8.
Fractional Shares. Series A Preferred may be issued in fractions of a share that shall entitle the holder, in proportion to such holder’s fractional shares, to exercise voting rights, receive dividends, participate in distributions and
have the benefit of all other rights of holders of Series A Preferred. All payments made with respect to fractional shares hereunder shall be rounded to the nearest whole cent. 
 4.3A.9. Certain Restrictions. 
 (A) Whenever quarterly dividends or other dividends or distributions payable on the Series A Preferred as provided in Section 4.3A.2 are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or
not declared, on shares of Series A Preferred outstanding shall have been paid in full, the corporation shall not: 
 (i)
declare or pay dividends on, make any other distributions on, or redeem or purchase or otherwise acquire for consideration any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A
Preferred; 
 (ii) declare or pay dividends on or make any other distributions on any shares of stock ranking on a parity
(either as to dividends or upon liquidation, dissolution or winding up) with the Series A Preferred, except dividends paid ratably on the Series A Preferred 

  

 3 

 
and all such parity stock on which dividends are payable or in arrears in proportion to the total amounts to which the holders of all such shares are then
entitled; 
 (iii) redeem or purchase or otherwise acquire for consideration shares of any stock ranking on a parity (either
as to dividends or upon liquidation, dissolution or winding up) with the Series A Preferred, provided that the corporation may at any time redeem, purchase or otherwise acquire shares of (1) any such parity stock in exchange for shares of any
stock of the corporation ranking junior (either as to dividends or upon dissolution, liquidation or winding up) to the Series A Preferred or (2) Common Stock or rights to acquire Common Stock held by a former employee or consultant of the
corporation or its affiliates; or 
 (iv) purchase or otherwise acquire for consideration any shares of Series A Preferred, or
any shares of stock ranking on a parity with the Series A Preferred, except in accordance with a purchase offer made in writing or by publication (as determined by the Board of Directors) to all holders of such shares upon such terms as the Board of
Directors, after consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes shall determine in good faith will result in fair and equitable treatment among the respective
series or classes. 
 (B) The corporation shall not permit any subsidiary of the corporation to purchase or otherwise acquire
for consideration any shares of stock of the corporation unless the corporation could, under paragraph (A) of this Section 4.3A.9, purchase or otherwise acquire such shares at such time and in such manner. 
 4.3A.10. Ranking. The Series A Preferred shall be junior to all other series of the corporation’s Preferred Stock as to the payment of
dividends and the distribution of assets, unless the terms of any series shall provide otherwise. 
 4.3A.11. Amendment. The Articles
of Incorporation of the corporation shall not be amended in any manner which would materially alter or change the powers, preferences or special rights of the Series A Preferred so as to affect them adversely without the affirmative vote of the
holders of two-thirds or more of the outstanding shares of Series A Preferred voting together as a single class. 
  

 4 

 EXHIBIT B 
 Form of Right Certificate 
  

			
	 Certificate No. R-
	  	                     Rights

 NOT EXERCISABLE AFTER MAY 21, 2018, OR EARLIER IF REDEEMED OR EXCHANGED. AT THE OPTION OF THE
COMPANY, THE RIGHTS MAY BE REDEEMED AT $0.001 PER RIGHT OR EXCHANGED FOR COMMON STOCK ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. IN THE EVENT THAT THE RIGHTS REPRESENTED BY THIS CERTIFICATE ARE ISSUED TO A PERSON WHO IS AN ACQUIRING PERSON OR
CERTAIN TRANSFEREE OF THE RIGHTS PREVIOUSLY OWNED BY SUCH PERSONS, THIS RIGHT CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY SHALL BE NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE. 
 RIGHT CERTIFICATE 
 NORTHSTAR NEUROSCIENCE, INC. 
 This certifies that _________, or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the
owner thereof, subject to the terms, provisions and conditions of the Rights Agreement dated as of May 21, 2008 (the “Rights Agreement”) between Northstar Neuroscience, Inc., a Washington corporation (the
“Company”), and Registrar and Transfer Company (the “Rights Agent”), to purchase from the Company at any time after the Distribution Date (as such term is defined in the Rights Agreement) and prior to 5:00 p.m.
(New York time) on May 21, 2018, at the principal office of the Rights Agent, or of its successors as Rights Agent, designated for such purpose, one one-thousandth of a fully paid and nonassessable share of Series A Preferred Stock of the
Company (the “Preferred Stock”) at a purchase price of $12.18 per one one-thousandth of a share, as the same may from time to time be adjusted in accordance with the Rights Agreement (the “Purchase Price”), upon
presentation and surrender of this Right Certificate with the Form of Election to Purchase duly executed. Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Rights Agreement.

 As provided in the Rights Agreement, the Purchase Price and the number of shares of Preferred Stock or
other securities which may be purchased upon the exercise of the Rights evidenced by this Right Certificate are subject to modification and adjustment upon the happening of certain events and, upon the happening of certain events, securities other
than shares of Preferred Stock, or other property, may be acquired upon exercise of the Rights evidenced by this Right Certificate, as provided by the Rights Agreement. 
 Upon the occurrence of a Flip-In Event, if the Rights evidenced by this Rights Certificate are beneficially owned by (i) an Acquiring Person or an Affiliate or Associate of any such Acquiring Person, (ii) a
transferee of any such Acquiring Person, Associate or Affiliate, or (iii) under certain circumstances specified in the Rights Agreement, a transferee of a Person who, after such transfer, became an Acquiring Person, or any Affiliate or
Associate of an Acquiring Person, such Rights shall be null and void and will no longer be transferable and no holder hereof shall have any right with respect to such Rights from and after the occurrence of such Flip-In Events. 
 This Right Certificate is subject to all the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are
incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities of the Rights Agent, the Company and the
holders of record of the Right Certificates, which limitation of rights include the temporary suspension of the exercisability of such Rights under the specific circumstances set forth in the Rights Agreement. Copies of the Rights Agreement are on
file at the principal executive office of the Company and are available upon written request to the Company. 
 This Right Certificate, with
or without other Right Certificates, upon surrender at the principal office of the Rights Agent designated for such purpose, may be exchanged for another Right Certificate or Right Certificates of like tenor and date evidencing Rights entitling the
holder of record to purchase a like aggregate number of shares of Preferred Stock as the Rights 

  

 2 

 
evidenced by the Right Certificate or Right Certificates surrendered shall have entitled such holder to purchase. If this Right Certificate shall be
exercised in part, the holder shall be entitled to receive upon surrender hereof, another Right Certificate or Right Certificates for the number of whole Rights not exercised. 
 Subject to the provisions of the Rights Agreement, at any time prior to the earlier of (i) the occurrence of a Flip-In Event (as such term is
defined in the Rights Agreement) or (ii) the Expiration Date (as such term is defined in the Rights Agreement), the Rights evidenced by this Certificate may be redeemed by the Company at its option at a redemption price of $0.001 per Right.
Subject to the provisions of the Rights Agreement, the Company may, at its option, at any time after a Flip-In Event, exchange all or part of the Rights evidenced by this Certificate for shares of the Company’s Common Stock or for Preferred
Stock (or shares of a class or series of the Company’s preferred stock having the same rights, privileges and preferences as the Preferred Stock). 
 In the event (i) any Person or group becomes an Acquiring Person or (ii) any of the types of transactions, acquisitions or other events described above as self-dealing transactions occur, and prior to the
acquisition by such person or group of 50% or more of the outstanding shares of Common Stock, the Board of Directors may require all or any portion of the outstanding Rights (other than Rights owned by such Acquiring Person which have become null
and void) to be exchanged for Common Stock on a pro rata basis, at an exchange ratio of one share of Common Stock or one one-thousandth of a share of Preferred Stock (or of a share of a class or series of the Company’s Preferred Stock having
equivalent rights, preferences and privileges), per Right (subject to adjustment). 
 No fractional shares of Preferred Stock shall be issued
upon the exercise of any Right or Rights evidenced hereby (other than fractions which are integral multiples of one one-thousandth of a share of Preferred Stock, which may, at the option of the Company, be evidenced by depositary receipts), and no
fractional shares of Common Stock will be issued upon the exchange of any Right or Rights evidenced hereby, and in lieu thereof, as provided in the Rights 

  

 3 

 
Agreement, fractions of shares of Preferred Stock or Common Stock shall receive an amount in cash equal to the same fraction of the then Current Market Price
(as such term is defined in the Rights Agreement) of a share of Preferred Stock or Common Stock, as the case may be. 
 No holder of this
Right Certificate, as such, shall be entitled to vote or receive dividends or be deemed for any purpose the holder of Common Stock or of any other securities of the Company which may at any time be issuable on the exercise hereof, nor shall anything
contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a shareholder of the Company or any right to vote in 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 or to receive notice of meetings or other actions affecting shareholders (other than certain actions specified in the Rights Agreement) or to receive dividends or
subscription rights, or otherwise, until the Right or Rights evidenced by this Right Certificate shall have been exercised or exchanged as provided in the Rights Agreement. 
 This Right Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent. 
  

 4 

 WITNESS the facsimile signature of the proper officers of the Company and its corporate seal (if
applicable). Dated as of                     ,         . 
  

									
	ATTEST:	 		 	NORTHSTAR NEUROSCIENCE, INC.
				
	 	 		 	By:	 	 
	Secretary	 		 		 	
		 		 	Title:	 	 
		 		 		 		 	
			
	COUNTERSIGNED:	 		 	 REGISTRAR AND TRANSFER COMPANY
 As
Rights Agent

					
		 		 		 	By:	 	 
		 		 		 		 	Authorized Officer

  

 5 

 Form of Reverse Side of Right Certificate  
 FORM OF ASSIGNMENT  
 (To be executed by the registered holder if such holder

 desires to transfer any or all of the Rights 
 represented by this Right Certificate) 
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto 
 ____________________________________________________________________________________________________________ 
 ____________________________________________________________________________________________________________ 
 (Name, address and social security or other 
 identifying number of transferee)

 _________________________
(                    ) of the Rights represented by this Right Certificate, together with all right, title and interest in and to said Rights,
and hereby irrevocably constitutes and appoints                              attorney to transfer said
Rights on the books of the within-named Company with full power of substitution. 
  

									
				
	 Dated: __________________________, _______
	 		 		 	 
		 		 		 		 	(Signature)

 Signature Guaranteed: 
 CERTIFICATE 
 The undersigned hereby certifies by checking the appropriate boxes that: 
 (1) the rights evidenced by this Right Certificate [            ] are
[            ] are not being sold, assigned and transferred by or on behalf of a Person who is or was an Acquiring Person (as such capitalized terms are defined in the Rights Agreement);

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

									
				
	 Dated: __________________________, _______
	 		 		 	 
		 		 		 		 	(Signature)

 Signature Guaranteed: 
  

 6 

 Form of Reverse Side of Right Certificate 
 (continued)  
 NOTICE 
 The signatures to the foregoing Assignment and the foregoing Certificate, if applicable, must correspond to the name as written upon the face of this
Right Certificate in every particular, without alteration or enlargement or any change whatsoever, and must be guaranteed by a participant in a Securities Transfer Association (“STA”) recognized signature program. 
 In the event that the foregoing Certificate is not duly executed, with signature guaranteed, the Company may deem the Rights represented by this Right
Certificate to be Beneficially Owned by an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such capitalized terms are defined in the Rights Agreement), and not issue any Right Certificate or Right Certificates in exchange
for this Right Certificate. 
  

 7 

 Form of Reverse of Right Certificate 
 (continued)  
 FORM OF ELECTION TO PURCHASE  
 (To be executed by the registered holder if such holder 
 desires to exercise any or all of the Rights 
 represented by this Right Certificate) 
 To Northstar Neuroscience, Inc.: 
 The undersigned hereby
irrevocably elects to exercise                             
(            ) of the Rights represented by this Right Certificate to purchase the shares of the Common Stock of the Company, or other securities or property issuable upon the
exercise of said number of Rights pursuant to the Rights Agreement. 
 The undersigned hereby requests that a certificate for any such
securities and any such property be issued in the name of and delivered to: 
 ____________________________________________________________________________________________________________ 
 ____________________________________________________________________________________________________________ 
 (Name, address and
social security or other 
 identifying number of issuee) 
 The undersigned hereby further requests that if said number of Rights shall not be all the Rights represented by this Right Certificate, a new Right Certificate for the remaining balance of such Rights be issued in
the name of and delivered to: 
 ____________________________________________________________________________________________________________ 
 ____________________________________________________________________________________________________________ 
 (Name, address and social security or other 
 identifying number of issuee) 

 

									
				
	 Dated: __________________________, _______
	 		 		 	 
		 		 		 		 	(Signature)

 Signature Guaranteed: 
  

 8 

 Form of Reverse Side of Right Certificate 
 (continued)  
 CERTIFICATE 
 The undersigned hereby certifies by checking the appropriate boxes that: 
 (1) the Rights evidenced by this Right Certificate [            ] are [            ] are not
being exercised by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such Acquiring Person or an Affiliate or Associate of any such Acquiring Person (as such terms are defined pursuant to the Rights
Agreement); 
 (2) after due inquiry and to the best knowledge of the undersigned, it
[            ] did [            ] did not acquire the Rights evidenced by this Right Certificate from any Person who is or was an
Acquiring Person or an Affiliate or Associate of an Acquiring Person or any transferee of such Persons. 
  

									
				
	 Dated: __________________________, _______
	 		 		 	 
		 		 		 		 	(Signature)

 Signature Guaranteed: 
 NOTICE 
 The signature to the foregoing Election to Purchase and the foregoing Certificate, if
applicable, must correspond to the name as written upon the face of the this Right Certificate in every particular, without alteration or enlargement or any change whatsoever, and must be guaranteed by a member firm of a registered national
securities exchange, a member of the National Association of Securities Dealers, Inc., or a commercial bank or trust company having an office or correspondent in the United States. 
 In the event that the foregoing Certificate is not executed, with signature guaranteed, the Company may deem the Rights represented by this Right
Certificate to be Beneficially Owned by an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such capitalized terms are defined in the Rights Agreement), and not issue any Right Certificate or Right Certificates in exchange
for this Right Certificate. 
  

 9 

 EXHIBIT C 
 UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, DATED MAY 21, 2008 (THE “RIGHTS AGREEMENT”) BETWEEN NORTHSTAR NEUROSCIENCE, INC. AND REGISTRAR AND TRANSFER COMPANY, RIGHTS ISSUED TO,
BENEFICIALLY OWNED BY, OR TRANSFERRED TO, ANY PERSON WHO IS OR BECOMES AN ACQUIRING PERSON (AS DEFINED IN THE RIGHTS AGREEMENT) OR AN ASSOCIATE OR AFFILIATE (AS DEFINED IN THE RIGHTS AGREEMENT) THEREOF AND CERTAIN TRANSFEREES THEREOF WILL BE NULL
AND VOID AND WILL NO LONGER BE TRANSFERABLE. 
 NORTHSTAR NEUROSCIENCE, INC. 
 Summary of Terms of 
 Rights Agreement 
  

			
	Nature of Right:	  	When exercisable, each Right (a “Right”) will initially entitle the holder to purchase one one-thousandth of a share of Series A Preferred Stock (“Preferred
Stock”) of Northstar Neuroscience, Inc. (the “Company”).
		
	Means of Distribution:	  	The Rights will be distributed to holders of the Company’s outstanding Common Stock as a dividend of one Right for each share of Common Stock. The Rights will also be attached to all future
issuances of Common Stock prior to the Distribution Date (as defined below).
		
	Exercisability:	  	Rights become exercisable on the earlier of: (i) the tenth day after the date of public announcement by the Company or by any person or group (an “Acquiring Person”) that
such person or group has acquired beneficial ownership of 15% or more of the Company’s outstanding Common Stock, or (ii) the tenth business day (unless extended by the Company’s Board of Directors (the “Board”) prior
to the time a person becomes an Acquiring Person) following the commencement, or announcement of an intention to commence, by any person or group of a tender or exchange offer which would result in such person owning 15% or more of the outstanding
Common Stock of the Company (the earlier of such dates is referred to as the “Distribution Date”), provided that an Acquiring Person does not include an Exempt Person or Grandfathered Person (as such terms are defined in the
Rights Agreement). Rights will trade separately from the Common Stock once the Rights become exercisable.
		
	Purchase Price:	  	$12.18 per one one-thousandth of a share of Series A Preferred, which is the amount that in the judgment of the Board represents the long-term value of one share of Common Stock over the term of
the Rights Agreement (the “Purchase Price”).
		
	Term:	  	The Rights will expire upon the earlier of (i) ten years after the date of issuance, or May 21, 2018 or (ii) redemption or exchange by the Company as described below.
		
	Redemption of Rights:	  	Rights are redeemable at a price of $0.001 per Right, by the vote of the Board, at any time until the occurrence of a Flip-In Event (defined below).

			
	Preferred Stock:	  	The Preferred Stock purchasable upon exercise of the Rights will be nonredeemable and junior to any other series of preferred stock the Company may issue (unless otherwise provided in the
terms of such other series). Each share of Preferred Stock will have a preferential cumulative quarterly dividend in an amount equal to 1,000 times the dividend declared on each share of Common Stock. In the event of liquidation, the holders of
Preferred Stock will receive a preferred liquidation payment equal to an amount per share equal to 1,000 times the aggregate payment to be distributed per share of Common Stock. Each share of Preferred Stock will have 1,000 votes, voting together
with the shares of Common Stock. In the event of any merger, consolidation or other transaction in which shares of Common Stock are exchanged for or changed into other securities, cash and/or other property, each share of Preferred Stock will be
entitled to receive 1,000 times the amount and type of consideration received per share of Common Stock. The rights of the Preferred Stock as to dividends, liquidation and voting, and in the event of mergers and consolidations, are protected by
customary anti-dilution provisions. Fractional shares (in integral multiples of one one-thousandth) of Preferred Stock will be issuable; however, the Company may elect to distribute depositary receipts in lieu of such fractional shares. In lieu of
fractional shares other than fractions that are multiples of one one-thousandth of a share, an adjustment in cash will be made based on the market price of the Preferred Stock on the last trading date prior to the date of exercise. Because of the
nature of the Preferred Stock’s dividend, liquidation and voting rights, the value of one one-thousandth of a share of Preferred Stock purchasable upon exercise of each Right should approximate the value of one share of Common
Stock.
		
	Rights in Event of Self-Dealing Transaction or Acquisition of Substantial Amount of Common Stock:	  	In the event that an Acquiring Person engages in certain self-dealing transactions with the Company, or any person (other than an Exempt Person or Grandfathered Person) becomes a Beneficial
Owner of 15% or more of the outstanding Common Stock (“Flip-In Events”), a holder of a Right thereafter has the right to purchase, upon payment of the then current Purchase Price, in lieu of one one-thousandth of a share of
Preferred Stock per outstanding Right, such number of shares of Common Stock having a market value at the time of the transaction equal to the Purchase Price divided by one-half the Current Market Price (as defined in the Rights Agreement) of the
Common Stock. Notwithstanding the foregoing, Rights held by an Acquiring Person or any Associate or Affiliate thereof or certain transferees will be null and void and no longer be transferable.
		
		  	Self-dealing transactions are defined to include a consolidation, merger or other combination of an Acquiring Person with the Company in which the Company is the surviving corporation, the
transfer of assets to the Company in exchange for securities of the Company, the acquisition of securities of the Company (other than in a pro rata distribution to all shareholders), the sale, purchase, transfer, distribution, lease, mortgage,
pledge or acquisition of assets by the Acquiring Person to, from or with the Company on other than an arm’s length basis, compensation to an Acquiring Person for services (other than for employment as a regular or part-time employee or director
on a basis consistent with the Company’s past practice), a loan or provision of other financial assistance (except proportionately as a shareholder) to an Acquiring Person, or the licensing, sale or other transfer of proprietary technology or
know-how from the Company to the Acquiring Person on terms not approved by the Board or a reclassification, recapitalization or other transaction with the effect of increasing by more than 1% the Acquiring Person’s proportionate share of any
class of securities of the Company.

  

 2 

			
	 Rights in Event of
 Business Combination:

	  	If, following the occurrence of a Flip-In Event, the Company is acquired by any person in a merger or other business combination transaction in which the Common Stock is exchanged or
converted or in which the Company is not the surviving corporation, or 50% or more of its assets or earnings power are sold to any person (“Flip-Over Events”), each holder of a Right (other than an Acquiring Person, or Affiliates or
Associates thereof) shall thereafter have the right to purchase, upon payment of the then-current Purchase Price, such number of shares of common stock of the acquiring company having a current market value equal to the Purchase Price divided by
one-half the Current Market Price of such common stock.
		
	Exchange Option:	  	In the event (i) any person or group becomes an Acquiring Person or (ii) any of the types of transactions, acquisitions or other events described above as self-dealing transactions
occur, and prior to the acquisition by such person or group of 50% or more of the outstanding shares of Common Stock, the Board may require all or any portion of the outstanding Rights (other than Rights owned by such Acquiring Person which have
become void) to be exchanged for Common Stock on a pro rata basis, at an exchange ratio of one share of Common Stock or one one-thousandth of a share of Preferred Stock (or of a share of a class or series of the Company’s Preferred Stock having
equivalent rights, preferences and privileges), per Right (subject to adjustment).
		
	Fractional Shares:	  	No fractional shares of Common Stock will be issued upon exercise of the Rights and, in lieu thereof, a payment in cash will be made to the holder of such Rights equal to the same fraction of
the current market value of a share of Common Stock.
		
	Adjustment:	  	The Purchase Price payable, and the number of shares of Preferred Stock or other securities or property issuable, upon exercise of the Rights are subject to adjustment from time to time to
prevent dilution (i) in the event of a stock dividend on, or a subdivision, combination or reclassification of the Preferred Stock, (ii) upon the grant to holders of the Preferred Stock of certain rights or warrants to subscribe for
Preferred Stock or convertible securities at less than the current market price of the Preferred Stock or (iii) upon the distribution to holders of the Preferred Stock of evidences of indebtedness or assets (excluding dividends payable in
Preferred Stock) or of subscription rights or warrants (other than those referred to above). The number of Rights associated with each share of Common Stock is also subject to adjustment in the event of a stock split of the Common Stock or a stock
dividend on the Common Stock payable in Common Stock or subdivisions, consolidations or combinations of the Common Stock occurring, in any such case, prior to the Distribution Date.
		
	Rights as Shareholder:	  	The Rights themselves do not entitle the holder thereof to any rights as a shareholder, including, without limitation, voting rights or to receive dividends.
		
	Amendment of Rights:	  	Until the Rights become nonredeemable, the Company may amend the Rights Agreement in any manner. After the Rights become nonredeemable, the Company may amend the Rights Agreement to cure any
ambiguity, to correct or supplement any provision that may be defective or inconsistent with any other provisions, to shorten or lengthen any time period under the Rights Agreement, or to change or supplement any provision in any manner the Company
may deem necessary or desirable, provided that no such amendment may adversely affect the interests of the holders of the Rights (other than the Acquiring Person or its Affiliates or Associates) or cause the Rights to again be redeemable or the
Rights Agreement to again be freely amendable.

  

 3 

			
	Independent Director Evaluation:	  	Following the adoption of the Rights Agreement, a committee comprised of independent members of the Board shall review the Rights Agreement to determine whether the maintenance of the Rights
Agreement continues to be in the best interests of the Company and its shareholders. Such review shall occur periodically, but at least every three years.

 A copy of the Rights Agreement is available, free of charge, from the Company, 2401 Fourth
Avenue, Suite 300, Seattle, Washington 98121, Attention: Secretary. This summary description of the Rights Agreement does not purport to be complete and is qualified in its entirety by reference to the Rights Agreement, as amended from time to time,
which is incorporated in this summary description by reference. 
  

 4

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