Document:

Exhibit
4.3

 

[Form of Second Amended and
Restated Shareholders’ Agreement]

 

 

SECOND AMENDED AND RESTATED

 

SHAREHOLDERS’ AGREEMENT

 

by and among

 

CELANESE CORPORATION,

 

BLACKSTONE CAPITAL PARTNERS (CAYMAN) LTD. 1,

 

BLACKSTONE CAPITAL PARTNERS (CAYMAN) LTD. 2,

 

BLACKSTONE CAPITAL PARTNERS (CAYMAN) LTD. 3,

 

and

 

BA CAPITAL INVESTORS SIDECAR FUND, L.P.

 

Dated as of January [    ], 2005

 

 

 

Table of Contents

 

	
  Article I.

  	
  INTRODUCTORY MATTERS

  	
   

  
	
  1.1

  	
  Defined Terms

  	
   

  
	
  1.2

  	
  Construction

  	
   

  
	
   

  	
   

  	
   

  
	
  Article II.

  	
  TRANSFERS

  	
   

  
	
  2.1

  	
  Limitations on Transfer

  	
   

  
	
  2.2

  	
  Transfers to
  BACI Affiliate Transferees

  	
   

  
	
  2.3

  	
  Right of First Refusal

  	
   

  
	
  2.4

  	
  Tag-Along
  Rights

  	
   

  
	
  2.5

  	
  Drag-Along
  Rights

  	
   

  
	
  2.6

  	
  Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  Article III.

  	
  CORPORATE
  GOVERNANCE MATTERS

  	
   

  
	
  3.1

  	
  Board
  of Directors

  	
   

  
	
   

  	
   

  	
   

  
	
  Article IV.

  	
  COVENANTS

  	
   

  
	
  4.1

  	
  Books and Records; Access

  	
   

  
	
  4.2

  	
  Periodic
  Reporting

  	
   

  
	
  4.3

  	
  Confidentiality

  	
   

  
	
  4.4

  	
  Indemnification

  	
   

  
	
  4.5

  	
  Expenses
  and Fees

  	
   

  
	
  4.6

  	
  Use of Shareholders’ Names

  	
   

  
	
   

  	
   

  	
   

  
	
  Article V.

  	
  MISCELLANEOUS

  	
   

  
	
  5.1

  	
  Additional
  Securities Subject to Agreement

  	
   

  
	
  5.2

  	
  Recapitalization, Exchange, Etc

  	
   

  
	
  5.3

  	
  Termination

  	
   

  
	
  5.4

  	
  Notices

  	
   

  
	
  5.5

  	
  Further
  Assurances

  	
   

  
	
  5.6

  	
  Assignment

  	
   

  
	
  5.7

  	
  Amendment;
  Waiver

  	
   

  
	
  5.8

  	
  Third
  Parties

  	
   

  
	
  5.9

  	
  Governing
  Law

  	
   

  
	
  5.10

  	
  Jurisdiction

  	
   

  
	
  5.11

  	
  MUTUAL
  WAIVER OF JURY TRIAL

  	
   

  
	
  5.12

  	
  Specific Performance

  	
   

  
	
  5.13

  	
  Entire
  Agreement

  	
   

  
	
  5.14

  	
  Titles and
  Headings

  	
   

  
	
  5.15

  	
  Severability

  	
   

  
	
  5.16

  	
  Counterparts

  	
   

  
	
  5.17

  	
  Effectiveness

  	
   

  

 

i

 

SECOND AMENDED AND RESTATED SHAREHOLDERS’ AGREEMENT

 

SECOND AMENDED AND RESTATED SHAREHOLDERS’ AGREEMENT, dated as of January [    ],
2005, by and among Celanese Corporation, a Delaware corporation (formerly known
as Blackstone Crystal Holdings Capital Partners (Cayman) IV Ltd.) (the “Company”),
Blackstone Capital Partners (Cayman) Ltd. 1 (“BCP 1”),
Blackstone Capital Partners (Cayman) Ltd. 2 (“BCP 2”),
Blackstone Capital Partners (Cayman) Ltd. 3 (“BCP 3” and,
together with BCP 1 and BCP 2 and their respective successors and
Permitted Assigns (as hereinafter defined), the “Blackstone Entities”), each
an exempted company incorporated under the laws of the Cayman Islands, and BA
Capital Investors Sidecar Fund, L.P., a Cayman Islands limited partnership
(together with its successors and Permitted Assigns, “BACI”).  Each of the Blackstone Entities and BACI and
their respective successors and Permitted Assigns are sometimes referred to
individually as a “Shareholder” and together as the “Shareholders.”

 

BACKGROUND:

 

WHEREAS, in connection with the consummation of the voluntary public
takeover offer by a subsidiary of the Company for all of the outstanding
registered ordinary shares of Celanese AG (the “Offer”), the Blackstone
Entities and BACI acquired ordinary shares, par value $0.01 per share, of the
Company (the “Ordinary Shares”);

 

WHEREAS, the Blackstone Entities and BACI entered into the
Shareholders’ Agreement, dated as of April 6, 2004 (as subsequently
amended and restated as of November 1, 2004, the “Original Agreement”)
to provide for certain matters relating to their respective holdings of Ordinary
Shares and the governance of the Company;

 

WHEREAS, on November 3, 2004, the Company migrated from the Cayman
Islands to the State of Delaware, redomiciled itself as a Delaware corporation
and changed its name from “Blackstone Crystal Holdings Capital Partners
(Cayman) IV Ltd.” to “Celanese Corporation”;

 

WHEREAS, in connection with, and effective upon, the Initial Public
Offering (as defined in Section 1.1) of the Company, and in accordance
with Section 6.7 of the Original Agreement, the parties to the Original
Agreement wish to amend and restate the Original Agreement in its entirety in
order to set forth certain understandings regarding the governance of the
Company and the relationship among the Company and the Shareholders following
consummation of the Initial Public Offering;

 

NOW, THEREFORE, the parties agree as follows:

 

ARTICLE I.           INTRODUCTORY
MATTERS

 

1.1 Defined Terms.  In addition to the terms defined elsewhere
herein, the following terms have the following meanings when used herein with
initial capital letters:

 

“Affiliate”
means, with respect to any Person, (i) any Person that directly or
indirectly controls, is controlled by or is under common control with, such
Person or (ii) any director, officer, member, partner (including limited
partners) or employee of

 

 

such Person or any Person specified in clause (i) above; provided
that officers, directors or employees of the Company will be deemed not to be
Affiliates of the Shareholders for purposes hereof solely by reason of being
officers, directors or employees of the Company.

 

“Agreement”
means this Second Amended and Restated Shareholders’ Agreement, as the same may
be amended, supplemented, restated or otherwise modified from time to time in
accordance with the terms hereof.

 

“Assumption
Agreement” means a writing reasonably satisfactory in form and substance to
the Blackstone Entities whereby a BACI Affiliate Transferee becomes a party to,
and agrees to be bound to the same extent as its transferor, by the terms of
this Agreement.

 

“BACI” has
the meaning set forth in the preamble.

 

“BACI
Affiliate Transferee” has the meaning set forth in Section 2.2.

 

“BACI
Permitted Assign Agreement” means an agreement reasonably satisfactory in
form and substance to the Blackstone Entities whereby such Transferee agrees
that it shall be bound by all of the provisions of this Agreement as if it were
BACI, but shall not be entitled to the benefits of Article III hereof.

 

“BCP 1”
has the meaning set forth in the preamble.

 

“BCP 2”
has the meaning set forth in the preamble.

 

“BCP 3”
has the meaning set forth in the preamble.

 

“Blackstone
Entities” has the meaning set forth in the preamble.

 

“Blackstone
Intervening Entity” means BCP 1, BCP 2, BCP 3 and any other Person created
by Blackstone Capital Partners (Cayman) IV L.P., Blackstone Capital Partners
(Cayman) IV-A L.P., Blackstone Family Investment Partnership (Cayman) IV-A L.P.
or Blackstone Chemical Coinvest Partners Cayman L.P. (collectively, the “Blackstone
Funds”), but excluding the Blackstone Funds themselves, formed for the
purpose of making the investment, directly or indirectly, in the Company.

 

“Blackstone
Representative” means the Blackstone Entity designated from time to time by
all of the Blackstone Entities to serve as the representative of the Blackstone
Entities for certain purposes hereunder.

 

“Board”
means the board of directors of the Company.

 

“Business
Day” means a day other than a Saturday, Sunday, federal or New York State
holiday or other day on which commercial banks in New York City are authorized
or required by law to close.

 

2

 

“Certificate
of Incorporation” means the amended and restated certificate of
incorporation of the Company, as the same may be amended, supplemented,
restated or otherwise modified from time to time in accordance with the terms
hereof.

 

“Company”
has the meaning set forth in the preamble.

 

“Common
Stock” means the shares of Series A common stock and Series B common stock,
par value $0.0001 per share, of the Company, and any other capital stock of the
Company into which such stock is reclassified or reconstituted and any other
common stock of the Company.

 

“Common
Stock Equivalents” means any security or obligation which is by its terms
convertible, exchangeable or exercisable into or for shares of Common Stock,
whether at the time of issuance or upon the passage of time or the occurrence
of some future event.

 

“Director”
means any member of the Board.

 

“Drag-Along
Buyer” has the meaning set forth in Section 2.5(a).

 

“Drag-Along
Notice” has the meaning set forth in Section 2.5(b).

 

“Drag-Along
Shareholders” shall have the meaning as set forth in Section 2.5(a).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder, as the same may be amended from time to
time.

 

“Initial
Public Offering” means the closing of the first sale of shares of Series A
Common Stock of the Company to the public pursuant to an effective registration
statement (other than a registration statement on Form S-4 or S-8 or any
similar or successor form) filed under the Securities Act.

 

“Initial
Share Holding Period” has the meaning set forth in Section 2.1(a).

 

“Majority
Shareholders” has the meaning set forth in Section 2.5(a).

 

“Offer”
has the meaning set forth in the preamble.

 

“Offer Notice” has the
meaning set forth in Section 2.3(a).

 

“Offer
Period” has the meaning set forth in Section 2.3(a).

 

“Permitted
Assigns” means (i) with respect to any Blackstone Entity, a Transferee
of shares of Common Stock of such Blackstone Entity that agrees to become party
to, and to be bound to the same extent as its transferor by the terms of, this
Agreement and (ii) with respect to BACI, a BACI Affiliate Transferee or a
Transferee of shares of

 

3

 

Common Stock of BACI that executes and delivers to the Company and each
Blackstone Entity a BACI Permitted Assign Agreement.

 

“Person”
means any individual, corporation, limited liability company, partnership,
trust, joint stock company, business trust, unincorporated association, joint
venture, governmental authority or other legal entity of any nature whatsoever.

 

“Preferred
Stock” means the shares of preferred stock, par value $0.01 per share, of
the Company and any other capital stock of the Company into which such stock is
designated, reclassified or reconstituted, and any other preferred stock of the
Company.

 

“Proposed
Sale” has the meaning set forth in Section 2.4(a).

 

“Proposed
Transferee” has the meaning set forth in Section 2.4(a).

 

“Public
Offering” means a sale of common equity or equivalent securities of the
Company to the public pursuant to an effective registration statement (other
than a registration statement on Form S-4 or S-8 or any similar or
successor form) filed under the Securities Act.

 

“Registration
Rights Agreement” means the Amended and Restated Registration Rights
Agreement dated as of the date hereof among the Company and the Shareholders,
as such agreement may be amended, supplemented or otherwise modified from time
to time.

 

“Related
Persons” has the meaning set forth in Section 4.4.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder, as the same may be amended from time to
time.

 

“Shareholder”
or “Shareholders” has the meaning set forth in the preamble.

 

“Tag-Along
Notice” has the meaning set forth in Section 2.4(b).

 

“Tagging
Shareholder” has the meaning set forth in Section 2.4(a).

 

“Tender
Offer Closing” means the closing of the first acquisition of registered
ordinary shares of Celanese AG by BCP Crystal Acquisition GmbH & Co. KG
pursuant to its voluntary public takeover offer published February 2,
2004.

 

“Transfer”
means a transfer, sale, assignment, pledge, hypothecation or other disposition,
whether directly or indirectly pursuant to the creation of a derivative
security, the grant of an option or other right, the imposition of a
restriction on disposition or voting or transfer by operation of law.  When used as a verb, “Transfer” shall have
the correlative meaning.  In addition,
“Transferred” and “Transferee” shall have the correlative meanings.

 

4

 

1.2 Construction.  The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent,
and no rule of strict construction will be applied against any party.  Unless the context otherwise requires:  (a) ”or” is disjunctive but not
exclusive, (b) words in the singular include the plural, and in the plural
include the singular, and (c) the words “hereof”, “herein”,
and “hereunder” and words of similar import when used in this Agreement
refer to this Agreement as a whole and not to any particular provision of this
Agreement, and Section references are to this Agreement unless otherwise
specified.

 

ARTICLE II.          TRANSFERS

 

2.1 Limitations
on Transfer. 
(a)  Without the prior written consent of the Blackstone
Representative, BACI may not Transfer any shares of Common Stock prior to the
six (6) month anniversary of the Initial Public Offering (or such shorter
period as the underwriters for such Initial Public Offering shall require of
either the Blackstone Entities or BACI) (the “Initial Share Holding Period”)
other than (1) to a BACI Affiliate Transferee in accordance with the
provisions of Section 2.2, (2) to one or more Blackstone Entities
pursuant to Section 2.3, (3) as a Tagging Shareholder pursuant to Section 2.4,
(4) as a Drag-Along Shareholder pursuant to Section 2.5 or (5) pursuant
to the rights set forth in the Registration Rights Agreement.  Without limiting BACI’s rights to transfer to
a BACI Affiliate Transferee pursuant to clause (1) of the preceding sentence,
in the event of any proposed Transfer by BACI of all of the shares of Common
Stock held by BACI to a Transferee that is an institutional investor of
national reputation and that executes a BACI Permitted Assign Agreement, which
proposed Transfer is subject to the rights set forth in Section 2.3 below,
such consent of the Blackstone Representative shall not be unreasonably
withheld or delayed.  After the Initial
Share Holding Period, BACI may Transfer its shares of Common Stock only in
accordance with, and subject to the applicable provisions of, this Article II
or pursuant to the rights set forth in the Registration Rights Agreement.  Any Transferee of BACI prior to the
expiration of the Initial Share Holding Period must qualify as a Permitted
Assign of BACI.

 

(b)           In the event of any purported Transfer by BACI of any shares
of Common Stock in violation of the provisions of this Agreement, such
purported Transfer will be void and of no effect and the Company will not give
effect to such Transfer.

 

(c)           Each certificate representing shares of Common Stock held by
any Shareholder will bear a legend substantially to the following effect:

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE
SUBJECT TO A SHAREHOLDERS’ AGREEMENT AMONG CELANESE CORPORATION AND THE
SHAREHOLDERS PARTY THERETO, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF
CELANESE CORPORATION.  THE SHAREHOLDERS’
AGREEMENT CONTAINS, AMONG OTHER THINGS, CERTAIN PROVISIONS RELATING TO THE
TRANSFER OF THE SHARES SUBJECT TO THE AGREEMENT.  NO TRANSFER, SALE, ASSIGNMENT, PLEDGE,
HYPOTHECATION OR OTHER DISPOSITION OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE MAY, DIRECTLY OR INDIRECTLY, BE MADE EXCEPT IN ACCORDANCE WITH THE
PROVISIONS OF SUCH

 

5

 

SHAREHOLDERS’ AGREEMENT.  THE HOLDER OF THIS CERTIFICATE, BY ACCEPTANCE
OF THIS CERTIFICATE, AGREES TO BE BOUND BY ALL OF THE PROVISIONS OF SUCH
SHAREHOLDERS’ AGREEMENT.

 

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS THEY HAVE BEEN REGISTERED UNDER
THAT ACT OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.”

 

This legend
will be removed by the Company, with respect to any certificate representing
shares of Common Stock, by the delivery of substitute certificates without such
legend in the event of (i) a Transfer permitted or not prohibited by this
Agreement and in which the Transferee is not required to, pursuant to this Article II,
enter into an Assumption Agreement or a BACI Permitted Assign Agreement or (ii) the
termination of this Agreement pursuant to the terms hereof, provided, however,
that the second paragraph of such legend will only be removed if at such time
it is no longer required for purposes of applicable securities laws.

 

(d)           Any Transfer by a Shareholder permitted under this Agreement
shall be effective only upon receipt by the Company of information reasonably
satisfactory to it, demonstrating that such Transfer is exempt from or not
subject to the provisions of Section 5 of the Securities Act and any other
applicable securities laws (for such purpose, an opinion of Kirkland &
Ellis LLP, or other counsel reasonably acceptable to the Company, to that
effect shall constitute such reasonably satisfactory information), provided
that no such Transfer shall be permitted, except as permitted under the
Registration Rights Agreement, if such Transfer would require the Company to
register a class of equity securities under Section 12 of the Exchange Act
under circumstances where the Company does not then have securities of any
class registered under Section 12 of the Exchange Act and such Transfer
would cause such registration to be required.

 

2.2 Transfers to BACI Affiliate
Transferees.  BACI may, at any
time, Transfer shares of Common Stock, subject to compliance with the other
provisions of this Agreement, to an Affiliate of Bank of America Corporation
who duly executes and delivers to the Company and each Blackstone Entity an
Assumption Agreement (a “BACI Affiliate Transferee”); provided, however,
that in the event a transaction or event is contemplated in which any BACI
Affiliate Transferee to which shares of Common Stock are Transferred will cease
to qualify as a BACI Affiliate Transferee, other than in connection with the bona fide sale or other disposition by
Bank of America Corporation, or any of its Affiliates, of a business unit that
includes such BACI Affiliate Transferee, such BACI Affiliate Transferee to
which shares of Common Stock are Transferred shall, and BACI shall cause such
BACI Affiliate Transferee to: (a) promptly notify the Company of the
pending occurrence of such transaction or event; and (b) prior to the time
such BACI Affiliate Transferee ceases to be a BACI Affiliate Transferee,
Transfer back to BA Capital Investors Sidecar Fund, L.P. (or to another BACI
Affiliate Transferee) any shares of Common Stock it owns and such Transferee
will execute and deliver an Assumption Agreement with respect thereto.

 

6

 

2.3 Right of First Refusal.  (a)  If
at any time prior to the expiration of the Initial Share Holding Period, BACI
proposes to Transfer, all or any portion of the shares of Common Stock held by
it (other than (i) to a BACI Affiliate Transferee in accordance with Section 2.2,
(ii) as a Tagging Shareholder pursuant to Section 2.4, (iii) as
a Drag-Along Shareholder pursuant to Section 2.5 or (iv) pursuant to
the rights set forth in the Registration Rights Agreement) and BACI has
received a bona fide arm’s length
offer for the shares of Common Stock subject to such Transfer, BACI shall
deliver to the Blackstone Representative a written notice (the “Offer Notice”)
of such proposed transaction, which shall identify the proposed Transferee and
set forth the proposed terms of such Transfer, including the number of shares
of Common Stock proposed to be Transferred and the purchase price
therefor.  The Offer Notice shall contain
an irrevocable offer to sell to the Blackstone Entities the shares of Common
Stock proposed to be Transferred at a price equal or equivalent (as determined
in the manner set forth below) to the price contained in, and otherwise on the
same terms and conditions of, the Offer Notice. 
The Blackstone Entities shall have fifteen (15) Business Days from
the date the Offer Notice is received (the “Offer Period”) to determine
whether one or more of such Blackstone Entities, or one or more of their
designees, shall exercise the right to purchase all (but not less than all) of
the shares of Common Stock subject to the Offer Notice on the terms set forth
in such Offer Notice, provided, however, that if the proposed
transaction includes any consideration other than cash, then, at the sole
option of any such Blackstone Entity or designee, the relevant price shall be
the equivalent cash price, determined (x) in the case of consideration
consisting of securities listed or quoted on a national securities exchange or
the Nasdaq National Market System, by the average daily closing sales price, as
reported by Bloomberg L.P. (or if not reported by Bloomberg L.P., as reported
by a reporting service of similar national reputation), of such securities on
their principal trading market for the ten consecutive trading days preceding
the date of receipt of the Offer Notice and (y) in the case of any other
non-cash consideration, by the Board, acting reasonably and in good faith.  If a Blackstone Entity does not respond to
the Offer Notice within the Offer Period, then such Blackstone Entity will be
deemed to have elected not to exercise the right of first refusal specified in
the Offer Notice.

 

If one or more of the
Blackstone Entities and/or their respective designees shall have agreed to
purchase shares of Common Stock pursuant to this Section 2.3, the
applicable Blackstone Entities and/or their designees shall consummate such
purchase by delivering, against receipt of certificates or other instruments
representing the shares of Common Stock being purchased, appropriately endorsed
by BACI, the purchase price for such shares. 
Such closing date will be the later of (i) fifteen (15) Business
Days after the expiration of the Offer Period and (ii) five (5)
Business Days after receipt of all governmental consents and approvals, and the
expiration of all governmental waiting periods, required for such Transfer.  BACI shall give participating Blackstone
Entities and/or designees at least five (5) Business Days written notice
of the closing date.

 

(b)           If none of the Blackstone Entities exercises its right of
first refusal under Section 2.3(a), then BACI shall be permitted to
Transfer the shares of Common Stock subject to the Offer Notice, no later than
sixty (60) days after the expiration of the Offer Period at a price not
less than the purchase price per share set forth in the Offer Notice and on
other terms not materially less favorable to BACI than those terms set forth in
the Offer Notice.  If BACI does not
Transfer the shares of Common Stock in the time period provided for in this Section 2.3(b),

 

7

 

any Transfer by BACI of any such shares after such period shall again
be subject to this Section 2.3.

 

2.4 Tag-Along
Rights.  (a)  Until the
expiration of the Initial Share Holding Period, if any Blackstone Entity (a “Selling
Shareholder”) proposes to Transfer shares of Common Stock, which Transfer
or series of related Transfers relates to more than 5% of the then-outstanding
shares of Common Stock (other than (i) to an Affiliate that qualifies as a
Permitted Assign or (ii) pursuant to the exercise of rights set forth in Section 2.5
or in the Registration Rights Agreement) (any such transaction, a “Proposed
Sale”), then each of the other Shareholders that is not a Blackstone Entity
will have the right to require the proposed Transferee (a “Proposed
Transferee”) to purchase from any such other Shareholder who exercises its
rights pursuant to this Section 2.4 (a “Tagging Shareholder”) up to
the number of shares of Common Stock equal to the product (rounded up to the
nearest whole number) of (x) the quotient determined by dividing
(A) the aggregate number of shares of Common Stock owned by such Tagging
Shareholder by (B) the aggregate number of shares of Common Stock owned by
the Selling Shareholder(s), all Tagging Shareholders and any other Persons
exercising similar rights held by such Persons under similar agreements and
(y) the total number of shares of Common Stock proposed to be directly or
indirectly Transferred to the Proposed Transferee, at the same price per share
of Common Stock and upon the same terms and conditions (including, without
limitation, time of payment, form of consideration and adjustments to purchase
price) as the Selling Shareholder; provided, that in order to be
entitled to exercise its right to sell shares of Common Stock to the Proposed
Transferee pursuant to this Section 2.4, each Tagging Shareholder shall
agree to make to the Proposed Transferee the same representations, warranties,
covenants, indemnities and agreements as the Selling Shareholder agrees to make
in connection with the Proposed Sale and shall agree to the same conditions to
the Proposed Sale as the Selling Shareholder agrees (except that, in the case
of representations, warranties, conditions, covenants, indemnities and
agreements pertaining specifically to the Selling Shareholder, each Tagging
Shareholder shall make comparable representations, warranties, covenants,
indemnities and agreements and shall agree to comparable conditions, in each
case to the extent applicable and pertaining specifically to itself and only to
itself); provided, that all representations, warranties, covenants,
indemnities and agreements (other than those referred to in the immediately
preceding exception) shall be made by the Selling Shareholder and each Tagging
Shareholder severally and not jointly and that any liability to the Selling
Shareholder and the Tagging Shareholders thereunder shall be borne by each of
them on a pro rata basis
determined according to the number of shares of Common Stock sold by each of
them.  Each Tagging Shareholder will be
responsible for its proportionate share of the costs of the Proposed Sale to
the extent not paid or reimbursed by the Company, the Proposed Transferee or
another Person (other than the Selling Shareholder).  The Selling Shareholder shall be entitled to
estimate each Tagging Shareholder’s proportionate share of such costs and to
withhold such amounts from payments to be made to such Tagging Shareholder at
the time of closing of such Proposed Sale; provided, that (1) such
estimate shall not preclude the Selling Shareholder from recovering additional
amounts from any Tagging Shareholder in respect of such Tagging Shareholder’s
proportionate share (based on the number of shares of Common Stock sold) of
such costs and (2) the Selling Shareholder shall promptly reimburse each
Tagging Shareholder to the extent actual amounts are ultimately less than the
estimated amounts paid by such Tagging Shareholder or any such amounts are paid
by the Company, the Proposed Transferee or another Person (other than the
Selling Shareholder).

 

8

 

(b)           The Selling Shareholder will give notice to the other
Shareholders of each Proposed Sale prior to the proposed closing date for such
proposed Transfer, setting forth the number of shares of Common Stock proposed
to be so Transferred, the name and address of the Proposed Transferee, the
proposed amount and form of consideration (and if such consideration consists
in part or in whole of property other than cash, the Selling Shareholder will
provide such information, to the extent reasonably available to the Selling
Shareholder, relating to such non-cash consideration as the Tagging
Shareholders together may reasonably request in order to evaluate such non-cash
consideration) and other terms and conditions of payment offered by the
Proposed Transferee.  The Selling
Shareholder will deliver or cause to be delivered to each Tagging Shareholder
copies of all transaction documents relating to the Proposed Sale promptly as
the same become available.  The tag-along
rights provided by this Section 2.4 must be exercised by the Tagging
Shareholders within fifteen (15) Business Days following receipt of the
notice required to be delivered by the Selling Shareholder pursuant to this
paragraph (b) by delivery of a written notice to the Selling Shareholder
indicating such Tagging Shareholder’s desire to exercise its rights and
specifying the number of shares of Common Stock it desires to sell (the “Tag-Along
Notice”).

 

(c)           If any Tagging Shareholder exercises its rights under this Section 2.4,
the closing of the purchase of the shares of Common Stock with respect to which
such rights have been exercised will take place concurrently with the closing
of the sale of the Selling Shareholder’s shares of Common Stock to the Proposed
Transferee.  The Seller Shareholder shall
use reasonable efforts to obtain the agreement of the Proposed Transferee to
the participation of all Tagging Shareholders in any applicable Transfer, and
no Selling Shareholder shall consummate any transfer to which this Section 2.4
applies unless the shares of Common Stock entitled to be sold by the Tagging
Shareholders pursuant to this Section 2.4 are purchased by the Proposed
Transferee (or by the Selling Shareholder or its designee in lieu of such Proposed
Transferee).

 

(d)           Notwithstanding anything contained in this Section 2.4,
there shall be no liability on the part of the Selling Shareholder to any
Tagging Shareholder if the Transfer of such Selling Shareholder’s shares of
Common Stock pursuant to this Section 2.4 is not consummated for any
reason.  Whether to effect a Proposed
Sale of shares of Common Stock, or to terminate any such transaction prior to
consummation, is in the sole and absolute discretion of such Selling Shareholder.

 

(e)           No Blackstone Entity shall avoid its obligations under this Section 2.4,
or permit any of its Affiliates to take any action which, if taken by such
Blackstone Entity, would be such an avoidance of its obligations, by
transferring to a non-Affiliate equity interests in any Blackstone Intervening
Entity in an amount and manner that, if such Transfer were of shares of Common
Stock, would require such entity to comply with its obligations to Shareholders
pursuant to this Section 2.4 without making appropriate accommodation to
BACI, bearing in mind the provisions of this Section 2.4.

 

2.5 Drag-Along
Rights.  (a)  Until the expiration of the Initial Share
Holding Period, if any Shareholder or Shareholders holding at least a majority
of the aggregate outstanding shares of Common Stock (collectively, the “Majority
Shareholders”) receive an offer from a Person other than an Affiliate of
such Shareholder or Shareholders (a “Drag-Along

 

9

 

Buyer”)
to purchase or otherwise acquire at least a majority of the aggregate
outstanding shares of Common Stock and the Majority Shareholders propose to
accept such offer, then each other Shareholder (collectively, the “Drag-Along
Shareholders”) shall, if requested by the Majority Shareholders in accordance
with this Section 2.5, Transfer to such Drag Along Buyer, subject to Section 2.5(b),
on the terms of the offer to be accepted by the Majority Shareholders,
including, without limitation, time of payment, form of consideration and
adjustments to purchase price, the number of shares of Common Stock equal to
the number of shares of Common Stock owned by it multiplied by the percentage
of the then-outstanding shares of Common Stock to which the Drag-Along Buyer’s
offer is applicable.  For purposes of clarification,
this Section 2.5 shall not apply to securities received by a Shareholder
pursuant to a transaction contemplated by Section 2.4 or a prior exercise
of this Section 2.5.

 

(b)           The Majority Shareholders will give notice (the “Drag-Along
Notice”) to the Drag-Along Shareholders of any proposed Transfer giving
rise to the rights of the Majority Shareholders set forth in Section 2.5(a)
no later than fifteen (15) Business Days prior to the proposed closing
date for such proposed Transfer.  The
Drag-Along Notice will set forth the number of shares of Common Stock proposed
to be so Transferred, the name of the Drag-Along Buyer, the proposed amount and
form of consideration (and if such consideration consists in part or in whole
of property other than cash, the Majority Shareholders will provide such
information, to the extent reasonably available to the Majority Shareholders,
relating to such non-cash consideration as the Drag-Along Shareholders together
may reasonably request in order to evaluate such non-cash consideration), the
number of shares of Common Stock sought and the other terms and conditions of
the offer.  Each Drag-Along Shareholder
shall agree to make the same representations, warranties, covenants, indemnities
and agreements that the Majority Shareholders agree to make (except that, in
the case of representations, warranties, conditions, covenants, indemnities and
agreements pertaining specifically to any of the Majority Shareholders, each
Drag-Along Shareholder shall make the comparable representations, warranties,
covenants, indemnities and agreements and shall agree to comparable conditions,
in each case to the extent applicable and pertaining specifically to itself and
only to itself); provided, that all representations, warranties, covenants,
indemnities and agreements (other than those referred to in the immediately
preceding exception) shall be made by each Majority Shareholder and each
Drag-Along Shareholder severally and not jointly and that any liability of the
Majority Shareholders and the Drag-Along Shareholders thereunder shall be borne
by each of them on a pro rata
basis determined according to the number of shares of Common Stock sold by each
of them; and provided, further, that in no event shall any such
indemnification obligation of any Drag-Along Shareholder in connection with
such transaction exceed such Drag-Along Shareholder’s proceeds of such
transaction.  In the event that any such
Transfer is structured as a merger, consolidation or similar business
combination, each Drag-Along Shareholder agrees to vote in favor of the
transaction and to take all action to waive any dissenters, appraisal or other
similar rights.  Each Drag-Along
Shareholder will be responsible for its proportionate share of the costs of
such Transfer (except for any costs incurred solely for the benefit of
individual shareholders, other than reasonable attorneys’ fees of the
Drag-Along Shareholders, which shall be included in the costs of such Transfer)
to the extent not paid or reimbursed by the Company, the Drag-Along Buyer or
another Person (other than the Majority Shareholders).  The Majority Shareholders shall be entitled
to estimate each Drag-Along Shareholder’s proportionate share of such costs and
to withhold such amounts from payments to be made to such Drag-Along
Shareholder at the time of closing of such Transfer; provided, that
(i) such estimate shall not

 

10

 

preclude the Majority Shareholders from recovering additional amounts
from any Drag-Along Shareholder in respect of such Drag-Along Shareholder’s
proportionate share of such costs and (ii) the Majority Shareholders shall
reimburse each Drag-Along Shareholder to the extent actual amounts are
ultimately less than the estimated amounts paid by such Drag-Along Shareholder
or any such amounts are paid by the Company, the Drag-Along Buyer or another
Person (other than the Majority Shareholders).

 

2.6 Termination.  Unless otherwise expressly provided for in
this Article II, all sections in this Article II shall terminate with
respect to any Shareholder upon the expiration of the Initial Share Holding
Period.

 

ARTICLE III.         CORPORATE
GOVERNANCE MATTERS

 

3.1 Board of
Directors.  (a)  For so
long as the Blackstone Entities (or their respective designated Affiliates)
hold at least twenty-five percent (25%) in voting power of all shares of the
Company’s capital stock entitled to vote generally in the election of
Directors, the Blackstone Entities shall be entitled, but not required, to
nominate all nominees for election to the Board, other than any Directors
entitled to be designated by the holders of the Preferred Stock pursuant to the
Certificate of Incorporation.  Each of
the Blackstone Entities shall take all action necessary to effect such
nominations to the Board.  Any Director
not so nominated by the Blackstone Entities pursuant to this Section 3.1
shall be nominated in accordance with the Certificate of Incorporation.  The termination of the rights of the
Blackstone Entities under this Section 3.1(a) shall in no way affect the
rights of the Blackstone Entities as holders of shares of Common Stock.

 

(b)           BA Capital Investors Sidecar Fund, L.P., together with any
BACI Affiliate Transferees, shall be entitled to designate one non-voting
observer (the “Observer”) to the Board until such time as BA Capital
Investors Sidecar Fund, L.P. and any BACI Affiliate Transferees no longer hold
any shares of Common Stock.  Any such
Observer shall be entitled to receive all notices and materials distributed to
Directors.  The Board may restrict the
Observer’s attendance as an observer at a meeting or deny the Observer any
notices, materials or other information, if the Board determines in good faith
that (i) upon advice of counsel, such attendance or distribution would be reasonably
likely to remove any privilege of confidentiality from otherwise
attorney-client privileged statements or information (in which case, the
Observer’s attendance or access shall be restricted only for such portion of
the meeting or information); provided, however, that the Observer
would not be excluded or denied such information if the Observer agrees to be
bound by confidentiality obligations that, to the reasonable satisfaction of
the Board’s counsel, would preserve such privilege, or (ii) upon advice of
counsel, such attendance or distribution is prohibited by applicable law.

 

(c)           Each of the Blackstone Entities hereby agrees to take such
actions provided for under the terms of the shares of Common Stock held by
them, in each case to elect the nominees referred to in Section 3.1(a) to
the Board.  If, following an election to
the Board pursuant to this Section 3.1, any Director nominated by a
Blackstone Entity shall resign or be removed or be unable to serve for any
reason prior to the expiration of his or her term as a Director, the Blackstone
Entities may notify the Board in writing of a replacement nominee and

 

11

 

each of the Blackstone Entities hereby agree to take such actions
provided for under the terms of the shares of Common Stock held by them, in
each case to elect such nominee to the Board.

 

(d)           The Company shall take all necessary actions within its
power to enable BA Capital Investors Sidecar Fund, L.P., together with any BACI
Affiliate Transferees, to designate one non-voting observer to the board of
directors, or comparable governing body, of each subsidiary of the Company
(other than, until such time that the Company first owns 100% of all the
outstanding registered ordinary shares, warrants, options and rights or
securities convertible into, exchangeable or exercisable for ordinary shares of
Celanese AG, such comparable governing bodies of Celanese AG and its
subsidiaries), to the extent BA Capital Investors Sidecar Fund, L.P., together
with any BACI Affiliate Transferees, is then entitled to designate an Observer
to the Board pursuant to this Section 3.1. 
For purposes of clarification, for any entity that has a two-tier board
structure, the comparable governing body shall be the supervisory board or
comparable body (and not the management board or comparable body).

 

(e)           The Company will pay all reasonable out-of-pocket expenses
incurred by the Directors (and, if applicable, any Observer designated pursuant
to Section 3.1) in connection with their participation in meetings of the
Board (and committees thereof), as well as such expenses of the members of the
boards of directors or comparable governing bodies (and committees thereof) of
the subsidiaries of the Company.  Each
Director, in his or her capacity as such, shall be entitled to the same
reimbursement, indemnification and insurance as any other Director receives in
his or her capacity as such.

 

ARTICLE IV.         COVENANTS

 

4.1 Books
and Records; Access.  The Company
shall, and shall cause its subsidiaries to, keep proper books, records and
accounts, in which full and correct entries shall be made of all financial
transactions and the assets and business of the Company and each of its
subsidiaries in accordance with generally accepted accounting principles.  The Company shall, and shall cause its
subsidiaries to, permit any Shareholder, at reasonable times and upon
reasonable prior notice to the Company, to review the books and records of the
Company or any of such subsidiaries and to discuss the affairs, finances and
condition of the Company or any of such subsidiaries with the officers of the
Company or any such subsidiary.

 

4.2 Periodic
Reporting.  (a)  The Company shall deliver or cause to be
delivered to each Shareholder:

 

(i)            as
soon as available, but not later than ninety (90) days after the end of each
fiscal year of the Company, a copy of the audited consolidated balance sheet of
the Company and its subsidiaries as of the end of such fiscal year and the
related statements of operations and cash flows for such fiscal year, setting
forth in each case in comparative form the figures for the previous year, all
in reasonable detail;

 

(ii)           commencing
with the fiscal period ending after September 30, 2004, as soon as
available, but in any event not later than forty five (45) days after the end
of each of the first three fiscal quarters of each fiscal year, the unaudited
consolidated balance sheet of the Company and its subsidiaries, and the related
statements of operations and

 

12

 

cash flows for such quarter and for the period commencing on the first
day of the fiscal year and ending on the last day of such quarter;

 

(iii)          to
the extent otherwise prepared by the Company, operating and capital expenditure
budgets and periodic information packages relating to the operations and cash
flows of the Company and its subsidiaries; and

 

(iv)          all
tax information (including information prepared in accordance with United
States federal income tax principles) regarding the Company, its subsidiaries
and its direct and indirect owners as (A) is necessary for a Shareholder
to (1) prepare accurately all tax returns (including, but not limited to,
United States federal income tax returns) required to be filed by such Shareholder
with respect to its investment in the Company and (2) comply with any tax
reporting requirements (including, but not limited to, any tax reporting
requirements imposed by United States federal income tax laws) imposed as a
result of such Shareholder’s ownership of an equity interest in the Company or
(B) is reasonably requested by a Shareholder to engage in such
Shareholder’s own tax planning with respect to its investment in the Company.

 

(b)           The Company shall deliver to each Blackstone Entity such
other reports and information as may be reasonably requested by such Blackstone
Entity.

 

4.3 Confidentiality.  Except as required by law or other legal
proceeding or regulatory process, each party hereto will, and will cause each
of their respective subsidiaries, Affiliates and representatives to, maintain
in confidence, any non-public or confidential proprietary information furnished
to them by or on behalf of any other party or its representatives in connection
with this Agreement or the transactions contemplated hereby.  All information provided under this Agreement
shall be deemed confidential; provided, however, that information
shall not be deemed confidential if (a) at the time of disclosure, such
information is generally available to and known by the public (other than as a
result of a disclosure directly by the recipient or any of its
representatives), (b) such information was available to the recipient on a
non-confidential basis from a source that is not and was not prohibited from
disclosing such information to the recipient by a contractual, legal or
fiduciary obligation or (c) such information is known to the recipient
prior to or independently of its relationship with the party providing such
information.

 

4.4 Indemnification.  The Company shall indemnify and hold
harmless, to the full extent permitted by law, each of Blackstone LR Associates
(Cayman) IV Ltd, Blackstone Management Associates (Cayman) IV L.P.,
Blackstone Capital Partners (Cayman) IV L.P., Blackstone Capital Partners
(Cayman) IV-A L.P., Blackstone Family Investment Partnership
(Cayman) IV-A L.P., Blackstone Chemical Coinvest Partners (Cayman) L.P.,
Blackstone Participation Partnership IV L.P., BCP 1, BCP 2 and BCP 3, BACI and
each of their directors, officers, employees, shareholders, general partners,
limited partners, members, advisory directors, managing directors and
affiliates (other than the Company and its subsidiaries) (and directors,
officers, employees, shareholders, general partners, limited partners, members,
advisory directors, managing directors and controlling persons thereof)
(collectively, “Related Persons”), against any and all losses, claims,
damages or liabilities, joint or several, and expenses (including without
limitation, reasonable attorneys’ fees and any and all reasonable expenses

 

13

 

incurred
investigating, preparing or defending against any litigation, commenced or
threatened, or any claim, and any and all amounts paid in any settlement of any
such claim or litigation) to which such Related Person may become subject,
insofar as such losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) or expenses arise out of or are based upon the
Offer or the other transactions contemplated thereby.  Such indemnification obligation shall be in
addition to any liability that the Company may otherwise have to any other such
Related Person.  The provisions of this Section 4.4
are intended to be for the benefit of, and shall be enforceable by, each
Related Person and its respective successors, heirs and representatives.

 

4.5 Expenses and
Fees.  The Company shall
reimburse the Blackstone Entities and their respective Affiliates for their
respective reasonable out-of-pocket fees and expenses incurred in connection
with the Offer, subject to receipt of documentation thereof reasonably
acceptable to the Company.  The Company
shall reimburse BA Capital Investors Sidecar Fund, L.P. for its reasonable
out-of-pocket fees and expenses incurred in connection with its subscription
for Ordinary Shares acquired in connection with the consummation of the Offer
(including, without limitation, due diligence investigation, and the
negotiation of the commitment letter and agreements, in each case relating to
such subscription), subject to receipt of documentation thereof reasonably
acceptable to the Company.  The Company
shall reimburse such fees and expenses concurrently with the Tender Offer
Closing to the extent such documentation has been received by the Company at
least two (2) Business Days prior to the date of the Tender Offer Closing, and
shall reimburse all other such fees and expenses as promptly as practicable
following receipt of such documentation.

 

4.6 Use of
Shareholders’ Names.  Neither any
Shareholder nor the Company shall use the name of any Shareholder in connection
with the business or affairs of the Company, including for purposes of
publicity, public relations, marketing or fundraising, without obtaining the
prior written consent of the Shareholder whose name is proposed to be used,
except (a) as required by law or other legal proceeding or regulatory process
or (b) for the listing of a Shareholder as a beneficial owner of registered
ordinary shares of Celanese AG and/or any other entity for which public
disclosure of such beneficial ownership is required or advisable, subject, in
the case of these clauses (a) and (b), to prior review and comment by such
Shareholder to the extent practicable under the circumstances.

 

ARTICLE V.          MISCELLANEOUS

 

5.1 Additional Securities Subject to
Agreement.  Each Shareholder
agrees that any capital stock of the Company which it hereafter acquires by
means of a stock split, stock dividend, distribution, exercise of options or
warrants, additional equity subscription, reorganization, redomiciliation or
otherwise (other than pursuant to a Public Offering) will be subject to the
provisions of this Agreement to the same extent as if held on the date
hereof.  If any Shareholder is issued any
Common Stock Equivalents, the Shareholders agree to amend this Agreement to the
extent necessary to reflect such issuance in a manner consistent with the terms
and conditions hereof.

 

5.2 Recapitalization, Exchange, Etc.  The provisions of this Agreement shall apply,
to the full extent set forth herein with respect to the Common Stock and Common
Stock Equivalents, to any and all shares, Common Stock Equivalents or other
securities of the

 

14

 

Company or any
successor to the Company that may be issued in respect of, in exchange for, or
in substitution of the Common Stock or Common Stock Equivalents.  If, and as often as, there are any changes in
the Common Stock or the Common Stock Equivalents, by way of any
reclassifications or through merger, consolidation, reorganization,
recapitalization, redomiciliation or by any other means occurring after the
date of this Agreement, appropriate adjustment shall be made to the provisions
of this Agreement, as may be required, so that the rights, privileges, duties
and obligations hereunder shall continue with respect to the Common Stock and
Common Stock Equivalents as so changed.

 

5.3 Termination.  This Agreement shall terminate with respect
to any Shareholder, on the date of which such Shareholder ceases to hold any
shares of Common Stock, except that Sections 4.3 and 4.4 shall survive such
termination.

 

5.4 Notices.  Any notice, request, instruction or other
document to be given hereunder by any party hereto to another party hereto
shall be in writing, shall be and shall be deemed given when (a) delivered
personally, (b) five (5) Business Days after being sent by certified
or registered mail, postage prepaid, return receipt requested,
(c) one (1) Business Day after being sent by Federal Express or other
nationally recognized overnight courier, or (iv) if transmitted by
facsimile if confirmed within 24 hours thereafter a signed original sent
in the manner provided in clause (a), (b) or (c) to the parties at the
following addresses (or at such other address for a party as shall be specified
by notice from such party):

 

if to the
Company:

 

Celanese Corporation 

1601 West LBJ Freeway

Dallas, Texas 75234-6034

	
  Attention:

  	
  General
  Counsel

  
	
  Fax:

  	
  972-443-8537

  

 

if to any
Blackstone Entity:

 

The Blackstone Group L.P.

345 Park Avenue

New York, New York 10154

	
  Attention:

  	
  Chinh Chu

  
	
  Fax:

  	
  (212)
  583-5722

  

 

with a copy
to:

 

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

	
  Attention:

  	
  William R.
  Dougherty, Esq.

  
	
  Fax:

  	
  (212)
  455-2502

  

 

15

 

if to BACI:

 

BA Capital Investors Sidecar Fund, L.P.

c/o Banc of America Capital Investors, L.P.

Banc of America Corporate Center

100 North Tryon Street, 25th Floor

Charlotte, NC 28255

	
  Attention:

  	
  J. Travis
  Hain

  
	
  Fax:

  	
  (704)
  386-6432

  

 

with a copy
to:

 

Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, IL 60601

	
  Attention:

  	
  Margaret A.
  Gibson

  
	
  Fax:

  	
  (312)
  861-2200

  

 

5.5 Further
Assurances.  The parties hereto
will sign such further documents, cause such meetings to be held, resolutions
passed, exercise their votes and do and perform and cause to be done such
further acts and things as may be necessary in order to give full effect to
this Agreement and every provision hereof.

 

5.6 Assignment.  This Agreement will inure to the benefit of
and be binding on the parties hereto and their respective successors and
Permitted Assigns.  Except as
specifically provided herein, this Agreement may not be assigned by BACI
without the express prior written consent of the Blackstone Representative, and
any attempted assignment, without such consents, will be null and void.  The rights of any Blackstone Entity under
this Agreement may be assigned by such Blackstone Entity to any Transferee of
Common Stock held by such Blackstone Entity, provided such Transferee
becomes a Permitted Assign.

 

5.7 Amendment;
Waiver.  This Agreement may be
amended, supplemented or otherwise modified only by a written instrument
executed by the Company and Shareholders holding a majority of the shares of
Common Stock subject to this Agreement; provided that no such amendment,
supplement or other modification shall adversely affect the interests of any
Shareholder hereunder disproportionately to other Shareholders without the
written consent of such Shareholder; and provided, further, that
no such amendment, supplement or modification shall adversely affect BACI in
any material respect without the written consent of the holders of a majority
of the shares of Common Stock held by BACI. 
No waiver by any party of any of the provisions hereof will be effective
unless explicitly set forth in writing and executed by the party so
waiving.  Except as provided in the
preceding sentence, no action taken pursuant to this Agreement, including without
limitation, any investigation by or on behalf of any party, will be deemed to
constitute a waiver by the party taking such action of compliance with any
covenants or agreements contained herein. 
The waiver by any party hereto of a breach of any provision of this
Agreement will not operate or be construed as a waiver of any subsequent
breach.

 

5.8 Third Parties.  Except as provided in Section 4.4, this
Agreement does not create any rights, claims or benefits inuring to any person
that is not a party hereto nor create or establish any third party beneficiary
hereto.

 

16

 

5.9 Governing Law.  This Agreement will be governed by, and
construed in accordance with, the laws of the State of New York.

 

5.10  Jurisdiction. 
The courts of the State of New York in New York County and the United
States District Court for the Southern District of New York shall have
jurisdiction over the parties with respect to any dispute or controversy
between them arising under or in connection with this agreement and, by
execution and delivery of this agreement, each of the parties to this Agreement
submits to the exclusive jurisdiction of those courts, including but not
limited to the in personam and subject matter
jurisdiction of those courts, waives any objections to such jurisdiction on the
grounds of venue or forum non conveniens,
the absence of in personam or
subject matter jurisdiction and any similar grounds, consents to service of
process by mail (in accordance with the notice provisions of this Agreement) or
any other manner permitted by law, and irrevocably agrees to be bound by any
judgment rendered thereby in connection with this Agreement.

 

5.11  MUTUAL WAIVER OF JURY TRIAL.  THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL
BY JURY IN ANY ACTION, SUIT OR PROCEEDING BROUGHT TO ENFORCE OR DEFEND ANY
RIGHTS OR REMEDIES UNDER THIS AGREEMENT.

 

5.12  Specific Performance.  The Company and each Shareholder acknowledge
and agree that in the event of any breach of this Agreement by any of them, the
Shareholders and the Company would be irreparably harmed and could not be made
whole by monetary damages.  Each party
accordingly agrees to waive the defense in any action for specific performance
that a remedy at law would be adequate and that the parties, in addition to any
other remedy to which they may be entitled at law or in equity, shall be
entitled to compel specific performance of this Agreement.

 

5.13  Entire Agreement.  This Agreement, together with the
Registration Rights Agreement and sets forth the entire understanding of the
parties hereto with respect to the subject matter hereof.  There are no agreements, representations,
warranties, covenants or undertakings with respect to the subject matter hereof
and thereof other than those expressly set forth herein and therein.  This Agreement, together with the
Registration Rights Agreement, supersedes all other prior agreements and
understandings between the parties, with respect to such subject matter.

 

5.14  Titles and Headings.  The section headings contained in this
Agreement are for reference purposes only and will not affect the meaning or
interpretation of this Agreement.

 

5.15  Severability. 
If one or more of the provisions, paragraphs, words, clauses, phrases or
sentences contained herein, or the application thereof in any circumstances, is
held invalid, illegal or unenforceable in any respect for any reason, the
validity, legality and enforceability of any such provision, paragraph, word,
clause, phrase or sentence in every other respect and of the remaining provisions,
paragraphs, words, clauses, phrases or sentences hereof shall not be in any way
impaired, it being intended that all rights, powers and privileges of the
parties hereto shall be enforceable to the fullest extent permitted by law.

 

17

 

5.16  Counterparts. 
This Agreement may be executed in any number of counterparts, each of
which will be deemed to be an original and all of which together will be deemed
to be one and the same instrument.

 

5.17  Effectiveness. 
This Agreement shall become effective upon the Initial Public Offering
and prior thereto shall be of no force or effect.  Until the effectiveness of this Agreement,
the Original Agreement shall remain in full force and effect in accordance with
its terms.  If the Initial Public
Offering shall not occur on or prior to February 15, 2005, this Agreement
shall automatically be of no force or effect and the Original Agreement shall
continue in full force and effect in accordance with its terms.

 

18

 

IN WITNESS
WHEREOF, each of the undersigned has executed this Agreement or caused this
Agreement to be executed on its behalf as of the date first written above.

 

	
   

  	
  CELANESE CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: David N. Weidman

  
	
   

  	
   

  	
  Title: Chief
  Executive Officer and President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BLACKSTONE CAPITAL
  PARTNERS (CAYMAN)

  LTD. 1

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Chinh Chu

  
	
   

  	
   

  	
  Title:
  Authorized Person

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BLACKSTONE CAPITAL
  PARTNERS (CAYMAN)

  LTD. 2

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Chinh Chu

  
	
   

  	
   

  	
  Title:
  Authorized Person

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BLACKSTONE CAPITAL
  PARTNERS (CAYMAN)

  LTD. 3

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Chinh Chu

  
	
   

  	
   

  	
  Title:
  Authorized Person

  

 

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BA CAPITAL INVESTORS SIDECAR FUND, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BA Capital Management Sidecar, L.P.

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BACM I Sidecar GP Limited

  
	
   

  	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title: Authorized PersonExhibit
4.5

RIGHTS AGREEMENT

CELANESE CORPORATION

and

EQUISERVE TRUST COMPANY,
N.A.

as Rights Agent

Dated as of [              ],
2005

 

TABLE OF CONTENTS

	
   

  	
   

  	
  Page

  
	
  Section 1.

  	
  Certain Definitions

  	
  1

  
	
  Section 2.

  	
  Appointment of
  Rights Agent

  	
  5

  
	
  Section 3.

  	
  Issuance of
  Right Certificates

  	
  5

  
	
  Section 4.

  	
  Form of Right
  Certificates

  	
  7

  
	
  Section 5.

  	
  Countersignature
  and Registration

  	
  7

  
	
  Section 6.

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

  	
  8

  
	
  Section 7.

  	
  Exercise of Rights, Purchase Price;
  Expiration Date of Rights

  	
  8

  
	
  Section 8.

  	
  Cancellation and Destruction of Right
  Certificates

  	
  10

  
	
  Section 9.

  	
  Availability of Shares of Preferred Stock

  	
  10

  
	
  Section 10.

  	
  Preferred Stock Record
  Date

  	
  11

  
	
  Section 11.

  	
  Adjustment of Purchase
  Price, Number and Kind of Shares and Number of Rights

  	
  11

  
	
  Section 12.

  	
  Certificate of Adjusted
  Purchase Price or Number of Shares

  	
  19

  
	
  Section 13.

  	
  Consolidation, Merger or
  Sale or Transfer of Assets or Earnings Power

  	
  19

  
	
  Section 14.

  	
  Fractional Rights and
  Fractional Shares

  	
  22

  
	
  Section 15.

  	
  Rights of Action

  	
  23

  
	
  Section 16.

  	
  Agreement of Right Holders

  	
  24

  
	
  Section 17.

  	
  Right Certificate Holder
  Not Deemed a Stockholder

  	
  24

  
	
  Section 18.

  	
  Concerning the Rights
  Agent

  	
  24

  
	
  Section 19.

  	
  Merger or Consolidation or
  Change of Name of Rights Agent

  	
  25

  
	
  Section 20.

  	
  Duties of Rights Agent

  	
  25

  
	
  Section 21.

  	
  Change of Rights Agent

  	
  27

  
	
  Section 22.

  	
  Issuance of New Right
  Certificates

  	
  28

  

 

i

 

 

	
   

  	
   

  	
  Page

  
	
  Section 23.

  	
  Redemption

  	
  28

  
	
  Section 24.

  	
  Exchange

  	
  29

  
	
  Section 25.

  	
  Notice of Certain Events

  	
  30

  
	
  Section 26.

  	
  Notices

  	
  31

  
	
  Section 27.

  	
  Supplements and Amendments

  	
  31

  
	
  Section 28.

  	
  Successors

  	
  32

  
	
  Section 29.

  	
  Benefits of this Rights
  Agreement

  	
  32

  
	
  Section 30.

  	
  Determinations and Actions
  by the Board of Directors

  	
  32

  
	
  Section 31.

  	
  Severability

  	
  32

  
	
  Section 32.

  	
  Governing Law

  	
  33

  
	
  Section 33.

  	
  Counterparts

  	
  33

  
	
  Section 34.

  	
  Descriptive Headings

  	
  33

  
	
  Section 35.

  	
  General Provision
  Regarding References to Dividends, Stock Splits

  	
  33

  
	
  Section 36.

  	
  Force Majeure

  	
  33

  

EXHIBITS

Exhibit
A — Form of Certificate of Designations

Exhibit B — Form of Rights
Certificate

Exhibit C — Form of Summary
of Rights

ii

 

INDEX OF DEFINED TERMS

	
   

  	
   

  	
  Page

  	
   

  
	
  Acquiring
  Person

  	
  1

  	
   

  
	
  Affiliate

  	
  2

  	
   

  
	
  Associate

  	
  2

  	
   

  
	
  Authorized
  Officer

  	
  26

  	
   

  
	
  BCP
  Direct Transferee

  	
  2

  	
   

  
	
  BCP
  Entities

  	
  2

  	
   

  
	
  BCP
  Indirect Transferee

  	
  2

  	
   

  
	
  Beneficial
  Owner

  	
  2

  	
   

  
	
  Beneficial
  Ownership

  	
  2

  	
   

  
	
  beneficially
  own

  	
  2

  	
   

  
	
  Business
  Day

  	
  4

  	
   

  
	
  close of
  business

  	
  4

  	
   

  
	
  Common
  Stock

  	
  4

  	
   

  
	
  Common
  Stock equivalents

  	
  13

  	
   

  
	
  Company

  	
  1

  	
   

  
	
  Current
  Value

  	
  13

  	
   

  
	
  Distribution
  Date

  	
  5

  	
   

  
	
  equivalent
  preferred shares

  	
  14

  	
   

  
	
  Exchange
  Act

  	
  2

  	
   

  
	
  Exchange
  Ratio

  	
  30

  	
   

  
	
  Exempted
  Entity

  	
  4

  	
   

  
	
  Expiration
  Date

  	
  9

  	
   

  
	
  Final Expiration
  Date

  	
  9

  	
   

  
	
  invalidation
  time

  	
  12

  	
   

  
	
  Nasdaq

  	
  4

  	
   

  
	
  NYSE

  	
  4

  	
   

  
	
  Original
  Rights

  	
  3

  	
   

  
	
  Ownership
  Statement

  	
  5

  	
   

  
	
  Person

  	
  4

  	
   

  
	
  Preferred
  Stock

  	
  4

  	
   

  
	
  Principal
  Party

  	
  21

  	
   

  
	
  Purchase
  Price

  	
  9

  	
   

  
	
  Record
  Date

  	
  1

  	
   

  
	
  Redemption
  Date

  	
  9

  	
   

  
	
  Redemption
  Price

  	
  29

  	
   

  
	
  Right

  	
  1

  	
   

  
	
  Right
  Certificate

  	
  6

  	
   

  
	
  Rights
  Agent

  	
  1

  	
   

  
	
  Rights
  Agreement

  	
  1

  	
   

  
	
  Section 11(a)(ii)
  Trigger Date

  	
  14

  	
   

  
	
  Securities
  Act

  	
  5

  	
   

  
	
  Security

  	
  15

  	
   

  
	
  Spread

  	
  13

  	
   

  
	
  Stock
  Acquisition Date

  	
  5

  	
   

  
	
  Subsidiary

  	
  5

  	
   

  
	
  Substitution
  Period

  	
  14

  	
   

  
	
  Summary
  of Rights

  	
  6

  	
   

  
	
  then
  outstanding

  	
  2

  	
   

  
	
  Trading
  Day

  	
  16

  	
   

  

 

 

iii

 

RIGHTS
AGREEMENT

Rights Agreement, dated as of [              ],
2005 (as amended, supplemented or otherwise modified from time to time, the “Rights
Agreement”) between Celanese Corporation, a Delaware corporation (the “Company”),
and EquiServe Trust Company, N.A. (the “Rights Agent”).

WHEREAS, the Board of Directors of the Company has on
[              ],
2005 authorized the execution of this Rights Agreement and the declaration of a
dividend of one preferred share purchase right (a “Right”) for each
share of Common Stock (as defined below) of the Company outstanding as of the
close of business (as defined below) on [              ],
2005 (the “Record Date”), each Right representing the right to purchase
one one-thousandth (subject to adjustment) of a share of Preferred Stock (as
defined below), upon the terms and subject to the conditions herein set forth,
and the Board of Directors has further authorized and directed the issuance of
one Right (subject to adjustment as provided herein) with respect to each share
of Common Stock that shall become outstanding between the Record Date and the
earlier of the Distribution Date and the Expiration Date (as such terms are
hereinafter defined); provided, however, that Rights may be
issued with respect to shares of Common Stock that shall become outstanding
after the Distribution Date and prior to the Expiration Date in accordance with
Section 22.

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

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

(a)   “Acquiring
Person” shall mean any Person (as defined
below) who or which shall be the Beneficial Owner (as defined below) of 15% or
more of the shares of Common Stock then outstanding, but shall not include an
Exempted Entity (as defined below); provided, however, that if
the Board of Directors of the Company determines in good faith that a Person
who would otherwise be an “Acquiring Person” has inadvertently become the
Beneficial Owner of a number of shares of Common Stock such that such Person
would otherwise qualify as an “Acquiring Person” (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 of Common Stock 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, then
such Person shall not be deemed to be or to have become an “Acquiring Person”
for any purposes of this Rights Agreement unless and until such Person shall
have failed to divest itself, as soon as practicable, if the Company so
requests, of Beneficial Ownership of a sufficient number of shares of Common
Stock so that such Person would no longer otherwise qualify as an “Acquiring
Person”.  Notwithstanding the foregoing,
no Person shall be deemed an “Acquiring Person” as the result of an acquisition
of shares of Common Stock by the Company which, by reducing the number of
shares outstanding, increases the proportionate number of shares beneficially
owned by such Person to 15% or more of the shares of Common Stock then

 

outstanding;
provided, however, that if a Person shall become the Beneficial
Owner of 15% or more of the shares of Common Stock then outstanding by reason
of such share acquisitions by the Company and thereafter becomes the Beneficial
Owner of any additional shares of Common Stock (other than pursuant to a
dividend or distribution paid or made by the Company on the outstanding Common
Stock or pursuant to a split or subdivision of the outstanding Common Stock),
then such Person shall be deemed to be an “Acquiring Person,” subject to the
proviso set forth in the first sentence of this Section 1(a), unless upon
the consummation of the acquisition of such additional shares of Common Stock
such Person does not beneficially own 15% or more of the shares of Common Stock
then outstanding.  The phrase “then
outstanding”, when used with reference to a Person’s Beneficial
Ownership of securities of the Company, shall mean the number of such
securities then issued and outstanding together with the number of such
securities not then actually issued and outstanding which such Person would be
deemed to own beneficially hereunder provided that, with respect to the
calculation of Beneficial Ownership of Common Stock, shares of Series B Common
Stock which are convertible into shares of Series A Common Stock shall be
counted only once (i.e., only as
shares of Series B Common Stock and not as shares of Series A Common Stock
issuable upon such conversion).

(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 Securities
Exchange Act of 1934, as amended and in effect on the date of the Agreement
(the “Exchange Act”).

(c)   “BCP
Direct Transferee” shall mean any Person that acquires directly from any BCP
Entity beneficial ownership of 15% or more of the then outstanding Common
Stock.

(d)   “BCP
Entities” shall mean Blackstone Capital Partners (Cayman)
Ltd. 1, Blackstone Capital Partners (Cayman) Ltd. 2 or Blackstone
Capital Partners (Cayman) Ltd. 3, or any Affiliate thereof that has
beneficial ownership of the shares of Common Stock held by the BCP Entities as
of the date hereof or directly or indirectly acquires beneficial ownership of
15% or more of the shares of the then outstanding Common Stock, except for the
Company and its Subsidiaries.

(e)   “BCP
Indirect Transferee” shall mean any Person that acquires directly from any BCP
Direct Transferee or any other BCP Indirect Transferee beneficial ownership of
15% or more of the then outstanding Common Stock.

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

(i)            which
such Person or any of such Person’s Affiliates or Associates is deemed to
beneficially own, directly or indirectly, within the meaning of Rule 13d-3
of the General Rules and Regulations under the Exchange Act as in effect on the
date of this Rights Agreement;

(ii)           which
such Person or any of such Person’s Affiliates or Associates 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 

 

2

 

respect
to a bona fide public offering of securities), written or otherwise, 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, or to beneficially
own, (x) securities tendered pursuant to a tender or exchange offer made
by or on behalf of such Person or any of such Person’s Affiliates or Associates
until such tendered securities are accepted for purchase or exchange,
(y) securities which such Person has a right to acquire on the exercise of
Rights at any time prior to the time a Person becomes an Acquiring Person or
(z) securities issuable upon exercise of Rights from and after the time a
Person becomes an Acquiring Person if such Rights were acquired by such Person
or any of such Person’s Affiliates or Associates prior to the Distribution Date
or pursuant to Section 3 or Section 22 hereof (the “Original
Rights”) or pursuant to Section 11(i) or Section 11(n)
with respect to an adjustment to the Original Rights; or (B) the right to
vote pursuant to any agreement, arrangement or understanding, written or
otherwise; provided, however, that a Person shall not be deemed
the Beneficial Owner of, or to beneficially own, any security by reason of such
agreement, arrangement or understanding if the agreement, arrangement or
understanding to vote such security (1) arises solely from a revocable
proxy or consent given to such Person in response to a public proxy or consent
solicitation made pursuant to, and in accordance with, the applicable rules and
regulations promulgated under the Exchange Act and (2) is not also then
reportable on Schedule 13D under the Exchange Act (or any comparable or
successor report); or

(iii)          which
are beneficially owned, directly or indirectly, by any other Person (or any
Affiliate or Associate thereof) 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 to the extent contemplated by the proviso to this
Section 1(f)(ii)(B)) or disposing of such securities of the Company;

provided, however,
that (w) with respect to the calculation of Beneficial Ownership of Common
Stock, shares of Series B Common Stock which are convertible into shares of
Series A Common Stock shall be counted only once (i.e.,
only as shares of Series B Common Stock and not as shares of Series A Common
Stock issuable upon such conversion), (x) that nothing in this
Section 1(f) shall cause a Person engaged in business as an underwriter of
securities to be the “Beneficial Owner” of, or to “beneficially own,” any
securities acquired through such Person’s participation in good faith in a firm
commitment underwriting until the expiration of forty (40) days after the
date of such acquisition, and then only if such securities continue to be owned
by such Person at such expiration of forty (40) days; (y) no Person
who is an officer, director, or employee of an Exempted Entity 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(f)), including, without limitation, in a fiduciary capacity, by
an Exempted Entity or by any other such officer, director or employee of an
Exempted Entity; and (z) a Person shall not be deemed the Beneficial Owner
of, to have “Beneficial Ownership” of or to beneficially own, shares of Common
Stock (or securities convertible into, exchangeable into or exercisable for
Common Stock) held by such Person in trust accounts, managed accounts and the
like, or otherwise held in 

 

3

 

a
fiduciary capacity, that are Beneficially Owned by third Persons who are not
Affiliates or Associates of such Person.

(g)   “Business
Day” shall mean any day other than a Saturday, a Sunday, or a
day on which banking institutions in the State of New York, or the State in
which the principal office of the Rights Agent is located, are authorized or
obligated by law or executive order to close.

(h)   “close
of business” on any given date shall mean 5:00 P.M., New York, 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 City time, on the
next succeeding Business Day.

(i)    “Common
Stock” when used with reference to the Company shall mean the
common stock, par value $0.0001, of the Company, consisting of Series A Common
Stock (the “Series A Common Stock”) and (for so long as any shares of such
series remain outstanding) Series B Common Stock (“Series B Common Stock”);
provided, however, that whenever this Agreement references the issuance of, the
exchange for, or the market price or value of Common Stock of the Company, such
references shall be deemed to be references only to the Series A Common Stock.  “Common Stock” when used with reference to
any Person other than the Company shall mean the capital stock (or, in the case
of an unincorporated entity, the equivalent equity interest) with the greatest
voting power of such other Person or, if such other Person is a subsidiary of
another Person, the Person or Persons which ultimately control such first-mentioned
Person.

(j)    “Exempted
Entity” shall mean (1) the Company, (2) any Subsidiary
(as defined below) of the Company (in the case of subclauses (1) and (2)
including, without limitation, in its fiduciary capacity), (3) any
employee benefit plan of the Company or of any Subsidiary of the Company,
(4) any entity or trustee holding Common Stock for or pursuant to the terms
of any such plan or for the purpose of funding any such plan or funding other
employee benefits for employees of the Company or of any Subsidiary of the
Company, (5) any BCP Entity, (6) any BCP Direct Transferee, or
(7) any BCP Indirect Transferee; provided, however, that any
BCP Entity, any BCP Direct Transferee or any BCP Indirect Transferee shall
cease to be an Exempted Entity as of the date that such BCP Entity, BCP Direct
Transferee or BCP Indirect Transferee ceases to beneficially own 15% or more of
the shares of the then outstanding Common Stock.

(k)   “Nasdaq” shall mean The Nasdaq Stock Market’s National Market.

(l)    “NYSE” shall mean the New York Stock Exchange, Inc.

(m)  “Person” shall mean any individual, firm, corporation, partnership,
limited liability company, trust or other entity, and shall include any
successor (by merger or otherwise) of such entity.

(n)   “Preferred
Stock” shall mean the Series A Junior Participating Preferred
Stock, par value $.01 per share, of the Company having the rights and
preferences set forth in the Certificate of Designations attached to this
Rights Agreement as Exhibit A and, to the extent that there are not a
sufficient number of shares of Series A Junior Participating Preferred
Stock authorized to permit the full exercise of the Rights, any other series of
preferred stock of the 

 

4

 

Company
designated for such purpose containing terms substantially similar to the terms
of the Series A Junior Participating Preferred Stock.

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

(p)   “Stock
Acquisition Date” shall mean the first date of public announcement (which for
purposes of this definition shall include, without limitation, a report filed
pursuant to Section 13(d) of the Exchange Act) by the Company or an
Acquiring Person that an Acquiring Person has become such or such earlier date
as a majority of the Board of Directors shall become aware of the existence of
an Acquiring Person.

(q)   “Subsidiary”
of any 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.

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

Section 3. Issuance of Right Certificates. 
(a)  Until the close of business
on the earlier of (i) the tenth (10th) day after the Stock
Acquisition Date or (ii) the tenth (10th) 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 Exempted Entity) of, or of the first
public announcement of the intention of such Person (other than an Exempted
Entity) to commence, a tender or exchange offer the consummation of which would
result in any Person (other than an Exempted Entity) becoming the Beneficial
Owner of 15% or more of the shares of Common Stock then outstanding (including,
in the case of both clause (i) and (ii), 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
(subject to the provisions of Section 3(b) hereof) by the certificates for
Common Stock registered in the names of the holders thereof, or by a current
ownership statement issued with respect to uncertificated shares of Common
Stock in lieu of such a certificate (an “Ownership Statement”) and not by separate Right Certificates
(as defined below), and (y) the Rights will be transferable only in
connection with the transfer 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, send) by
first-class, insured, postage-prepaid mail, to each record holder of
Common Stock as of the close of business on the Distribution Date (other than
any Acquiring Person or any Associate or Affiliate of an Acquiring Person), at
the address of such holder shown on the records of the Company, a Right
Certificate,

 

5

 

in substantially the form of Exhibit B hereto (a “Right
Certificate”), evidencing one Right (subject to
adjustment as provided herein) for each share of Common Stock so held.  As of and after the Distribution Date, the
Rights will be evidenced solely by such Right Certificates.

(b)   As
promptly as practicable following the Record Date, the Company will send a copy
of a Summary of Rights to Purchase Shares of Preferred Stock, in substantially
the form of Exhibit C hereto (the “Summary of Rights”),
by electronic mail, to each record holder of Common Stock as of the close of
business on the Record Date (other than any Acquiring Person or any Associate
or Affiliate of any Acquiring Person), at the address of such holder shown on
the records of the Company; provided, however, the Company will
send a copy of the Summary of Rights by first-class, postage-prepaid mail to
each record holder who so requests upon receipt of the electronic mail.  With respect to shares of Common Stock
outstanding as of the Record Date, until the Distribution Date, the Rights
associated with such shares will be evidenced by the share certificate for such
shares of 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, shall also constitute the transfer of the Rights
associated with the Common Stock represented thereby.

(c)   Rights
shall be issued in respect of all shares of Common Stock issued or disposed of
(including, without limitation, upon disposition of Common Stock out of
treasury stock or issuance or reissuance of Common Stock out of authorized but
unissued shares) after the Record Date but prior to the earlier of the
Distribution Date and the Expiration Date, or in certain circumstances provided
in Section 22 hereof, after the Distribution Date.  Certificates or Ownership Statements issued
for Common Stock (including, without limitation, upon transfer of outstanding
Common Stock, disposition of Common Stock out of treasury stock or issuance or
reissuance of Common Stock out of authorized but unissued shares) after the
Record Date but prior to the earlier of the Distribution Date and the
Expiration Date shall have impressed on, printed on, written on or otherwise
affixed to them the following legend:

“This certificate also
evidences and entitles the holder hereof to certain rights as set forth in a
Rights Agreement between Celanese Corporation and EquiServe Trust Company,
N.A., as Rights Agent, dated as of [                ],
2005, as the same may be amended, supplemented or otherwise modified from time
to time (the “Rights Agreement”), the terms of which are hereby
incorporated herein by reference and a copy of which is on file at the
principal executive offices of Celanese Corporation.  Under certain circumstances, as set forth in
the Rights Agreement, such Rights will be evidenced by separate certificates
and will no longer be evidenced by this certificate.  Celanese Corporation will mail to the holder
of this certificate a copy of the Rights Agreement without charge after receipt
of a written request therefor.  Under
certain circumstances, as set forth in the Rights Agreement, Rights owned by or
transferred to any Person who is or becomes an Acquiring Person (as defined in
the Rights Agreement) and certain 

 

6

 

transferees thereof will become null and void and will
no longer be transferable.”

With respect to such certificates or Ownership Statements containing
the foregoing legend, until the Distribution Date, the Rights associated with
the Common Stock represented by such Certificates or Ownership Statements shall
be evidenced by such certificates or Ownership statements alone, and the
surrender for transfer of any such certificate or the transfer of any shares of
Common Stock represented by such Ownership Statements, except as otherwise
provided herein, shall also constitute the transfer of the Rights associated
with the Common Stock represented thereby. 
In the event that the Company purchases or otherwise acquires any Common
Stock after the Record Date but prior to the Distribution Date, any Rights
associated with such 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 which are no longer outstanding.

Notwithstanding this paragraph (c), 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.

Section 4. Form of Right Certificates. 
The Right Certificates (and the forms of election to purchase shares and
of assignment to be printed on the reverse thereof) 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 applicable law or with any rule or regulation made pursuant thereto or
with any rule or regulation of NYSE or of any other stock exchange or automated
quotation system on which the Rights may from time to time be listed, or to
conform to usage.  Subject to the
provisions of Section 11 and Section 22 hereof, the Right
Certificates shall entitle the holders thereof to purchase such number of one
one-thousandths of a share of Preferred Stock as shall be set forth therein at
the Purchase Price (as determined pursuant to Section 7), but the amount
and type of securities purchasable upon the exercise of each Right and the
Purchase Price thereof shall be subject to adjustment as provided herein.

Section 5. Countersignature and Registration. 
(a)  The Right Certificates shall
be executed on behalf of the Company by the Chief Executive Officer, the
President, any of the Vice Presidents or the Treasurer of the Company, either
manually or by facsimile signature, shall have affixed thereto the Company’s
seal or a facsimile thereof and 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
by the Rights Agent, either manually or by facsimile signature, and shall not
be valid for any purpose unless 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

 

7

 

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, the Rights Agent will keep or cause to be kept, at an
office or agency designated for such purpose, books for registration and
transfer of the Right Certificates issued hereunder.  Such books shall show the names and addresses
of the respective holders of the Right Certificates, the number of Rights
evidenced on its face by each of the Right Certificates and the date of each of
the Right Certificates.

Section 6.  Transfer, Split Up, Combination and
Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right
Certificates.  (a)  Subject to the provisions of this Rights
Agreement, at any time after the close of business on the Distribution Date,
and prior to the close of business on the Expiration Date, any Right
Certificate or Right Certificates may be transferred, split up, combined or
exchanged for another Right Certificate or Right Certificates, entitling the
registered holder to purchase a like number of one one-thousandths of a share
of Preferred Stock (or, following such time, other securities, cash or assets
as the case may be) as the Right Certificate or Right Certificates surrendered
then entitled such holder to purchase. 
Any registered holder desiring to transfer, split up, combine or
exchange any Right Certificate or Right Certificates shall make such request in
writing delivered to the Rights Agent, and shall surrender the Right
Certificate or Right Certificates to be transferred, split up, combined or
exchanged at the office or agency of the Rights Agent designated for such
purpose.  Thereupon the Rights Agent,
subject to the provisions of this Rights Agreement, shall countersign and
deliver to the Person entitled thereto a Right Certificate or Right
Certificates, as the case may be, as so requested.  The Company may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer, split up, combination or exchange of Right
Certificates.

(b)   Subject
to the provisions of this Rights Agreement, at any time after the Distribution
Date and prior to the Expiration Date, 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, at
the Company’s request, reimbursement to the Company and the Rights Agent of all
reasonable expenses incidental thereto, and upon surrender to the Rights Agent
and cancellation of the Right Certificate if mutilated, the Company will make
and deliver a new Right Certificate of like tenor to the Rights Agent for
delivery to the registered holder in lieu of the Right Certificate so lost,
stolen, destroyed or mutilated.

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

(a)  Except as otherwise provided herein, the Rights shall become
exercisable on the Distribution Date, and thereafter the registered holder of
any Right Certificate may, subject to Section 11(a)(ii) hereof and except
as otherwise provided herein, exercise the Rights evidenced thereby in whole or
in part upon surrender of the Right Certificate, with the form of election to
purchase on the reverse side thereof duly executed, to the Rights Agent at the
office or agency of the Rights Agent designated for such purpose, together with
payment of the Purchase Price for each one one-thousandth of a share of
Preferred Stock (or other securities, cash or assets, as the case may be) as to
which the Rights are exercised, at any time which is both after the
Distribution Date and prior to the time (the “Expiration Date”) that is the earliest of (i) the
close

 

8

 

of business on [                ,
2015] (the “Final Expiration Date”), (ii) the time at which the
Rights are redeemed as provided in Section 23 hereof (the “Redemption
Date”) or (iii) the time at which such
Rights are exchanged as provided in Section 24 hereof.

(b)   The
purchase price (the “Purchase Price”)
shall be initially $[___] for each one one-thousandth of a share of Preferred
Stock purchasable upon the exercise of a Right. 
The Purchase Price and the number of one one-thousandths of a share of
Preferred Stock or other securities or property to be acquired upon exercise of
a Right shall be subject to adjustment from time to time as provided in
Section 11 and Section 13 hereof and shall be payable in lawful money
of the United States of America in accordance with paragraph (c) of this
Section 7.

(c)   Except
as otherwise provided herein, upon receipt of a Right Certificate representing
exercisable Rights, with the form of election to purchase duly executed, accompanied
by payment of the aggregate Purchase Price for the number of shares of
Preferred Stock to be purchased and an amount equal to any applicable tax or
governmental charge required to be paid by the holder of such Right Certificate
in accordance with Section 69 hereof, in cash or by certified check,
cashier’s check or money order payable to the order of the Company, the Rights
Agent shall thereupon promptly (i)(A) requisition from any transfer agent
of the Preferred Stock or make
available if the Rights
Agent is the transfer agent for the Preferred Stock certificates
for the number of shares of Preferred Stock to be purchased (and the Company
hereby irrevocably authorizes its transfer agent to comply with all such
requests), or (B) requisition from the depositary agent appointed by the
Company depositary receipts representing interests in such number of one
one-thousandths of a share of Preferred Stock as are to be purchased, in which
case certificates for the Preferred Stock represented by such receipts shall be
deposited by the transfer agent with the depositary agent (and the Company
hereby directs the depositary agent to comply with such request),
(ii) when appropriate, requisition from the Company the amount of cash to
be paid in lieu of issuance of fractional shares in accordance with
Section 14 hereof, (iii) promptly after receipt of such certificates
or depositary receipts, cause the same to be delivered to or upon the order of
the registered holder of such Right Certificate, registered in such name or
names as may be designated by such holder and (iv) when appropriate, after
receipt, promptly deliver such cash to or upon the order of the registered
holder of such Right Certificate.

(d)   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 exercisable 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 Section 14 hereof.

(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 of Rights upon the occurrence of any purported transfer or
exercise of Rights pursuant to Section 6 hereof or this Section 7
unless such registered holder shall have (i) completed and signed the
certificate contained in the form of assignment or election to purchase set
forth on the reverse side of the Right Certificate surrendered for such
transfer or exercise and (ii) provided such additional evidence of the
identity of the Beneficial Owner (or former Beneficial Owner) thereof as the
Company shall reasonably request.

 

9

 

Section 8. Cancellation and Destruction of
Right Certificates.  All Right
Certificates surrendered for the purpose of exercise, transfer, split up, combination
or exchange shall, if surrendered to the Company or 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 other 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 or cause to be destroyed such cancelled
Right Certificates, and in such case shall deliver a certificate of destruction
thereof to the Company.

Section 9. Availability of Shares of Preferred
Stock.  (a)  The Company
covenants and agrees that it will cause to be reserved and kept available out
of its authorized and unissued shares of Preferred Stock or any shares of
Preferred Stock held in its treasury, the number of shares of Preferred Stock
that will be sufficient to permit the exercise in full of all outstanding
Rights.

(b)   So
long as the shares of Preferred Stock (and, following the time that a Person
becomes an Acquiring Person, shares of Common Stock and other securities)
issuable upon the exercise of Rights may be listed or admitted to trading on
the NYSE or listed on any other national securities exchange or quotation
system, the Company shall use its reasonable best efforts to cause, from and
after such time as the Rights become exercisable, all shares reserved for such
issuance to be listed or admitted to trading on the NYSE or listed on any other
exchange or quotation system upon official notice of issuance upon such
exercise.

(c)   From
and after such time as the Rights become exercisable, the Company shall use its
reasonable best efforts, if then necessary to permit the issuance of shares of
Preferred Stock (and following the time that a Person first becomes an
Acquiring Person, shares of Common Stock and other securities) upon the
exercise of Rights, to register and qualify such shares of Preferred Stock (and
following the time that a Person first becomes an Acquiring Person, shares of
Common Stock and 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 qualifications to become
effective as soon as possible after such filing and keep such registration and
qualifications effective until the earlier of (x) the date as of which the
Rights are no longer exercisable for such securities and (y) the Expiration
Date.  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. 
Notwithstanding any provision of this Rights Agreement to the contrary,
the Rights shall not be exercisable in any jurisdiction unless the requisite
qualification or exemption in such jurisdiction shall have been obtained and
until a registration statement under the Securities Act (if required) shall
have been declared effective.

 

10

 

(d)   The
Company covenants and agrees that it will take all such action as may be
necessary to ensure that all shares of Preferred Stock (and, following the time
that a Person becomes an Acquiring Person, shares of Common Stock and other
securities) delivered upon exercise of Rights shall, at the time of delivery of
the certificates therefor (subject to payment of the Purchase Price), be duly
and validly authorized and issued and fully paid and nonassessable shares.

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

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

Section 11. Adjustment of Purchase Price, Number
and Kind of Shares and Number of Rights. 
The Purchase Price, the number of shares of Preferred Stock or other
securities or property purchasable upon exercise of each Right and the number
of Rights outstanding are subject to adjustment from time to time as provided
in this Section 11.

(a)   (i)  In the event the Company shall at any time
after the date of this Agreement (A) declare and pay a dividend on the
Preferred Stock payable in shares of Preferred Stock, (B) subdivide the
outstanding shares of Preferred Stock, (C) combine the outstanding shares
of Preferred Stock into a smaller number of shares of Preferred Stock or
(D) issue any shares of its capital stock in a reclassification of the
shares of 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 

 

11

 

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, as the
case may be, and the number and kind of shares of capital stock issuable on
such date, shall be proportionately adjusted so that the holder of any Right
exercised after such time shall be entitled to receive the aggregate number and
kind of shares of capital stock which, if such Right had been exercised
immediately prior to such date and at a time when the Preferred Stock transfer
books of the Company were open, the holder would have owned upon such exercise
and been entitled to receive by virtue of such dividend, subdivision,
combination or reclassification; provided, however, that in no
event shall the consideration to be paid upon the exercise of one Right be less
than the aggregate par value of the shares of capital stock of the Company
issuable upon exercise of one Right.

(ii)           Subject
to Section 24 of this Rights Agreement and except as otherwise provided in
this Section 11(a)(ii) and Section 11(a)(iii), in the event that any
Person becomes an Acquiring Person, each holder of a Right shall thereafter
have the right to receive, upon exercise thereof at a price equal to the
then-current Purchase Price, in accordance with the terms of this Rights Agreement
and in lieu of shares of Preferred Stock, such number of shares of Common Stock
(or at the option of the Company, such number of one one-thousandths of a share
of Preferred Stock) as shall equal the result obtained by (x) multiplying
the then-current Purchase Price by the number of one one-thousandths of a
share of Preferred Stock for which a Right is then exercisable and dividing
that product by (y) 50% of the then-current per share market price of the
Company’s Common Stock (determined pursuant to Section 11(d) hereof) on
the date of the occurrence of such event; provided, however, that
the Purchase Price (as so adjusted) and the number of shares of Common Stock so
receivable upon exercise of a Right shall thereafter 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 time (the “invalidation
time”) when any Person first becomes an Acquiring Person, 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 invalidation time or (z) a transferee of any Acquiring Person
(or any such Affiliate or Associate) who became a transferee prior to or
concurrently with the invalidation time 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,
written or otherwise, regarding the transferred Rights or (II) a transfer
that the Board of Directors has determined is part of a plan, arrangement or
understanding, written or otherwise, which has the purpose or effect of
avoiding the provisions of this paragraph, and subsequent transferees of such
Persons, shall be 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 invalidation time, no
Right Certificate shall be issued pursuant to Section 3 or Section 6
hereof that represents Rights that are or have become void pursuant to the
provisions of this paragraph, and any Right Certificate delivered to the Rights
Agent that represents 

 

12

 

Rights
that are or have become void pursuant to the provisions of this paragraph shall
be cancelled.  From and after the
occurrence of an event specified in Section 13(a) hereof, any Rights that
theretofore have not been exercised pursuant to this Section 11(a)(ii)
shall thereafter be exercisable only in accordance with Section 13 and not
pursuant to this Section 11(a)(ii).

(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 per share market price of a share of
Common Stock.  In the event that there
shall be an insufficient number of Common Stock authorized but unissued (and
unreserved) to permit the exercise in full of the Rights in accordance with the
foregoing subparagraph (ii), the Board of Directors shall, with respect to
such deficiency, 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 of (x) 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 (y) the then-current Purchase Price multiplied
by the number of one one-thousandths of shares of Preferred Stock for which a
Right was exercisable immediately prior to the time that the Acquiring Person
became such (such excess, the “Spread”), and (B) with respect to each Right (other than
Rights which have become void pursuant to Section 11(a)(ii)), make
adequate provision to substitute for the shares of Common Stock issuable in
accordance with subparagraph (ii) upon exercise of the Right and payment
of the applicable Purchase Price, (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 are hereinafter referred to as “Common
Stock 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, if the Company shall not make
adequate provision to deliver value pursuant to clause (B) above within
thirty (30) days following the date that the Acquiring Person became such
(the “Section 11(a)(ii) 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 the 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 within the thirty (30) day period
referred to above the Board of Directors shall determine in good faith that it
is likely that sufficient additional shares of Common Stock could be authorized
for issuance

 

13

 

upon
exercise in full of the Rights, then, if the Board of Directors so elects, such
thirty (30) day period may be extended to the extent necessary, but not
more than ninety (90) days after the Section 11(a)(ii) Trigger Date,
in order that the Company may seek stockholder approval for the authorization
of such additional shares (such thirty (30) day period, as it may be
extended, is hereinafter called 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 Section 11(a)(ii) hereof and the last
sentence of this Section 11(a)(iii) hereof, that such action shall apply
uniformly to all outstanding Rights and (y) may suspend the exercisability of
the Rights until the expiration of the Substitution Period in order to seek any
authorization of additional shares and/or to decide the appropriate form of
distribution to be made pursuant to such second sentence and to determine the
value thereof.  In the event of any such
suspension, the Company shall issue a public announcement stating that the
exercisability of the Rights has been temporarily suspended, 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 shares of Common Stock shall be the current per share market
price (as determined pursuant to Section 11(d)(i)) on the
Section 11(a)(ii) Trigger Date and the per share or fractional value of
any Common Stock equivalent shall be deemed to equal the current per share
market price of the Common Stock.  The
Board of Directors of the Company may, but shall not be required to, establish
procedures to allocate the right to receive shares of 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, options or
warrants to all holders of Preferred Stock entitling them (for a period
expiring within forty-five (45) calendar days after such record date) to
subscribe for or purchase Preferred Stock (or shares having similar rights,
privileges and preferences as the Preferred Stock (“equivalent preferred
shares”)) or securities convertible into Preferred Stock or
equivalent preferred shares at a price per share of Preferred Stock or
equivalent preferred shares (or having a conversion price per share, if a
security convertible into shares of Preferred Stock or equivalent preferred
shares) less than the then-current per share market price of the Preferred
Stock (determined pursuant to Section 11(d) hereof) on such record date,
the Purchase Price to be in effect after such record date shall be determined
by multiplying the Purchase Price in effect immediately prior to such record
date by a fraction, the numerator of which shall be the number of shares of
Preferred Stock and equivalent preferred shares outstanding on such record date
plus the number of shares of Preferred Stock and equivalent preferred shares
which the aggregate offering price of the total number of such shares so to be
offered (and/or the aggregate initial conversion price of the convertible
securities so to be offered) would purchase at such current market price, and
the denominator of which shall be the number of shares of Preferred Stock and
equivalent preferred shares outstanding on such record date plus the number of
additional shares of Preferred Stock and/or equivalent preferred shares to be
offered for subscription or purchase (or into which the convertible securities
so to be offered are initially convertible); provided, however,
that in no event shall the consideration to be paid upon the exercise of one
Right be less than the aggregate par value of the shares of capital stock of
the Company issuable upon exercise of one Right.  In case such subscription price may be paid
in a consideration part or all of which shall be in a form other than cash, the
value of such consideration shall be as determined in good faith by the Board

 

14

of
Directors of the Company, whose determination shall be described in a statement
filed with the Rights Agent and which shall be binding on the Rights
Agent.  Shares of Preferred Stock and
equivalent preferred shares 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,
options or warrants are not so issued, the Purchase Price shall be adjusted to
be the Purchase Price which would then be in effect if such record date had not
been fixed.

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

(d)   (i)  Except as otherwise provided herein, for the
purpose of any computation hereunder, the “current per share market price” of
any security (a “Security” for the purpose of this Section 11(d)(i)) on any date
shall be deemed to be the average of the daily closing prices per share of such
Security for the thirty (30) consecutive Trading Days (as such term is
hereinafter defined) immediately prior to such date; provided, however,
that in the event that the current per share market price of the Security is
determined during a period following the announcement by the issuer of such
Security of (A) a dividend or distribution on such Security payable in
shares of such Security or securities convertible into such shares, or
(B) any subdivision, combination or reclassification of such Security, and
prior to the expiration of thirty (30) Trading Days after the ex-dividend
date for such dividend or distribution, or the record date for such
subdivision, combination or reclassification, then, and in each such case, the
current per share market price shall be appropriately adjusted to reflect the
current market price per share equivalent of such Security.  The closing price for each day shall be the
last sale price, regular way, or, in case no such sale takes place on such day,
the average of the closing bid and asked prices, regular way, in either case as
reported by (w) the principal consolidated transaction reporting system
with respect to securities listed or admitted to trading on the NYSE or, (x) if
the Security is not listed or admitted to trading on the NYSE, as reported in
the principal consolidated transaction reporting system with respect to
securities listed on the principal

 

15

national securities exchange on which
the Security is listed or admitted to trading or, if (y) the Security is
not listed or admitted to trading on any national securities exchange, the last
quoted price or, if not so quoted, the average of the high bid and low asked prices
in the over-the-counter market, as reported by Nasdaq or such other system then
in use, or, (z) if on any such date the Security is not quoted by any such
organization, the average of the closing bid and asked prices as furnished by a
professional market maker making a market in the Security selected by the Board
of Directors of the Company.  The term “Trading
Day” shall mean a day on which the principal national securities
exchange on which the Security is listed or admitted to trading is open for the
transaction of business or, if the Security is not listed or admitted to
trading on any national securities exchange, a Business Day.

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

(e)   No
adjustment in the Purchase Price shall be required unless such adjustment would
require an increase or decrease of at least 1% in the Purchase Price; provided,
however, that any adjustments not required to be made by reason of this
Section 11(e) shall be carried forward and taken into account in any
subsequent adjustment.  All calculations
under this Section 11 shall be made to the nearest cent or to the nearest
one ten-thousandth of a share of Preferred Stock or share of Common Stock or
other share or security as the case may be. 
Notwithstanding the first sentence of this Section 11(e), any
adjustment required by this Section 11 shall be made no later than the
earlier of (i) three (3) years from the date of the transaction which
requires such adjustment or (ii) the Expiration Date.

(f)    If
as a result of an adjustment made pursuant to Section 11(a) hereof, the
holder of any Right thereafter exercised shall become entitled to receive any
shares of capital stock of the Company other than the Preferred Stock,
thereafter the Purchase Price and the number of such other shares so receivable
upon exercise of a Right shall be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions with
respect to the Preferred Stock contained in Section 11(a), (b), (c), (e),
(h), (i) and (m) and the provisions of Section 7, Section 9, Section 10,
Section 13 and Section 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 one one-thousandths of a share of
Preferred Stock purchasable 

 

16

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 Section 11(b) and (c), each Right outstanding
immediately prior to the making of such adjustment shall thereafter evidence
the right to purchase, at the adjusted Purchase Price, that number of one one-thousandths
of a share of Preferred Stock (calculated to the nearest one ten- thousandth of
a share of Preferred Stock) obtained by (i) multiplying
(x) the number of one one-thousandths of a share of Preferred Stock
purchasable upon the exercise of a Right immediately prior to such 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
pursuant to Section 11(b) or (c) hereof to adjust the number of Rights, in
substitution for any adjustment in the number of one one-thousandths of a
share of Preferred Stock purchasable upon the exercise of a Right.  Each of the Rights outstanding after such adjustment
of the number of Rights shall be exercisable for the number of one one-thousandths
of a share of Preferred Stock for which a Right was exercisable immediately
prior to such adjustment.  Each Right
held of record prior to such adjustment of the number of Rights shall become
that number of Rights (calculated to the nearest one ten-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.  This record date may be the date on which the
Purchase Price is adjusted or any day thereafter, but, if the Right
Certificates have been issued, shall be at least ten (10) days later than
the date of the public announcement.  If Right
Certificates have been issued, upon each adjustment of the number of Rights
pursuant to this Section 11(i), the Company may, 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 as a result
of such adjustment.  Right Certificates
so to be distributed shall be issued, executed and countersigned in the manner
provided for herein and shall be registered in the names of the holders of
record of Right Certificates on the record date specified in the public
announcement.

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

 

17

 

(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 Preferred Stock or other
shares of capital stock issuable upon exercise of the Rights, the Company shall
take any corporate action which may, in the opinion of its counsel, be
necessary in order that the Company may validly and legally issue fully paid
and nonassessable shares of Preferred Stock or other such shares at such
adjusted Purchase Price.

(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 until the occurrence of such event the issuing to
the holder of any Right exercised after such record date the Preferred Stock,
Common Stock or other capital stock or securities of the Company, if any,
issuable upon such exercise over and above the Preferred Stock, Common Stock or
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 upon the occurrence of the event requiring such
adjustment.

(m)  Notwithstanding
anything in this Section 11 to the contrary, the Company shall be entitled
to make such adjustments in the Purchase Price, in addition to those
adjustments expressly required by this Section 11, as and to the extent
that it in its sole discretion shall determine to be advisable in order that
any consolidation or subdivision of the Preferred Stock, issuance (wholly for
cash) of any shares of Preferred Stock at less than the current market price,
issuance (wholly for cash) of Preferred Stock or securities which by their
terms are convertible into or exchangeable for Preferred Stock, dividends on
Preferred Stock payable in shares of Preferred Stock or issuance of rights,
options or warrants referred to hereinabove in Section 11(b), hereafter
made by the Company to holders of its Preferred Stock shall not be taxable to
such stockholders.

(n)   Notwithstanding
anything in this Rights Agreement to the contrary, in the event that at any
time after the date of this Rights Agreement and prior to the Distribution
Date, the Company shall (i) declare and pay any dividend on the Common
Stock payable in Common Stock or (ii) effect a subdivision, combination or
consolidation of the Common Stock (by reclassification or otherwise than by
payment of a dividend payable in Common Stock) into a greater or lesser number
of shares of Common Stock, then in any such case, 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 shall equal 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 of which shall be the total number of shares of Common
Stock outstanding immediately prior to the occurrence of the event and the
denominator of which shall be the total number of shares of Common Stock
outstanding immediately following the occurrence of such event.

(o)   The
Company agrees that, after the earlier of the Distribution Date or the Stock
Acquisition 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

 

18

reasonably
foreseeable that such action will diminish substantially or eliminate the
benefits intended to be afforded by the Rights.

Section 12. Certificate of Adjusted Purchase
Price or Number of Shares.  Whenever
an adjustment is made as provided in Section 11 or Section 13 hereof,
the Company shall promptly (a) prepare a certificate setting forth such
adjustment, and a brief statement of the facts accounting for such adjustment,
(b) file with the Rights Agent and with each transfer agent for the Common
Stock or the Preferred Stock a copy of such certificate and (c) mail a
brief summary thereof to each holder of a Right Certificate in accordance with
Section 25 hereof (if so required under Section 25 hereof).  The Rights Agent shall be fully protected in
relying on any such certificate and on any adjustment therein contained and
shall not be deemed to have knowledge of any such adjustment unless and until
it shall have received such certificate.

Section 13. Consolidation, Merger or Sale or
Transfer of Assets or Earnings Power. 
(a)  In the event, directly or
indirectly, at any time after any Person has become an Acquiring Person,
(i) the Company shall merge with and into any other Person (other than one
or more of its wholly-owned Subsidiaries), (ii) any Person (other
than one or more of its wholly-owned Subsidiaries), shall consolidate
with the Company, or any Person (other than one or more of its wholly-owned
Subsidiaries), shall merge with and into the Company and the Company shall be
the continuing or surviving corporation of such merger and, in connection with
such merger, all or part of the 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, or (iii) the Company shall sell or otherwise
transfer (or one or more of its Subsidiaries shall sell or otherwise transfer),
in one or more transactions, assets or earning power aggregating to 50% or more
of the assets or earning power of the Company and its Subsidiaries (taken as a
whole) to any other Person (other than the Company or one or more of its
wholly-owned Subsidiaries), then, and in each such case, proper provision shall
be made so that:

(A)  each holder of record of a Right (other than
Rights which have become void pursuant to Section 11(a)(ii)) shall
thereafter have the right to receive, upon the exercise thereof at a price
equal to the then-current Purchase Price multiplied by the number of one one-thousandths
of a share of Preferred Stock for which a Right was exercisable (whether or not
such Right was then exercisable) immediately prior to the time that any Person
first became an Acquiring Person (each as subsequently adjusted thereafter
pursuant to Section 11(a)(i), Section 11(b), (c), (f), (h), (i) and
(m)), in accordance with the terms of this Rights Agreement and in lieu of
Preferred Stock, such number of validly issued, fully paid and non-assessable
and freely tradeable shares of Common Stock of the Principal Party (as defined
below) not subject to any liens, encumbrances, rights of first refusal or other
adverse claims, as shall be equal to the result obtained by (1) multiplying
the then-current Purchase Price by the number of one one-thousandths of a
share of Preferred Stock for which a Right was exercisable immediately prior to
the time that any Person first became an Acquiring Person (as subsequently
adjusted thereafter pursuant to Section 11(a)(i), Section 11(b), (c),
(f), (h), (i) and (m)) and (2) dividing that product by 50% of the
then-current per share market price of the Common Stock of such Principal Party
(determined pursuant to Section 11(d)(i) hereof) on the date of
consummation of such consolidation, merger, sale or transfer; provided
that the Purchase Price and the number of shares of Common Stock of such
Principal Party issuable upon exercise of each Right shall be further adjusted
as provided in Section 11(f) of this Rights Agreement to reflect any
events 

 

19

occurring in respect of such
Principal Party after the date of such consolidation, merger, sale or transfer;

(B)   such Principal Party shall thereafter be
liable for, and shall assume, by virtue of such consolidation, merger, sale or
transfer, all the obligations and duties of the Company pursuant to this Rights
Agreement;

(C)   the term “Company” as used herein shall
thereafter be deemed to refer to such Principal Party; and

(D)  such Principal Party shall take such steps
(including, but not limited to, the reservation of a sufficient number of its
shares of its Common Stock) in connection with such 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 the
shares of its Common Stock thereafter deliverable upon the exercise of the
Rights; provided that, upon the subsequent occurrence of any
consolidation, merger, sale or transfer of assets 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 and payment of the
Purchase Price as provided in this Section 13(a), such cash, shares,
rights, warrants and other property which such holder would have been entitled
to receive had such holder, at the time of such transaction, owned the Common
Stock of the Principal Party receivable upon the exercise of a Right pursuant
to this Section 13(a), and such Principal Party shall take such steps
(including, but not limited to, reservation of shares of stock) as may be
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 clauses (i) or (ii) of the first
sentence of Section 13(a) hereof: 
(A) the Person that is the issuer of the securities into which the
shares of Common Stock are converted in such merger or consolidation, or, if
there is more than one such issuer, the issuer of the shares of Common Stock of
which have the greatest aggregate market value of shares outstanding, or
(B) if no securities are so issued, (x) the Person that is the other
party to the merger, if such Person survives said merger, or, if there is more
than one such Person, the Person the shares of Common Stock of which have the
greatest aggregate market value of shares outstanding or (y) if the Person
that is the other party to the merger does not survive the merger, the Person
that does survive the merger (including the Company if it survives) or
(z) the Person resulting from the consolidation; and

(ii)           in
the case of any transaction described in clause (iii) 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 is the 

 

20

issuer
of Common Stock having the greatest aggregate market value of shares
outstanding;

provided, however, that in any such case described in
the foregoing clause (b)(i) or (b)(ii), if the Common Stock of such Person
is not at such time or has not been continuously over the preceding 12-month
period registered under Section 12 of the Exchange Act, then (1) if
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, and the Common Stock of all of
such persons have been so registered, the term “Principal Party” shall refer to
whichever of such Persons is the issuer of Common Stock having the greatest
aggregate 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 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 or transfer
referred to in Section 13(a) hereof 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 Section 13(a)
and (b) hereof shall promptly be performed in accordance with their terms and
that such consolidation, merger, sale 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 Section 13(a) and (b)
hereof and providing that, as soon as practicable after executing such
agreement pursuant to this Section 13, the Principal Party will:

(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 Expiration Date, and similarly comply with applicable state securities
laws;

(ii)           use
its best efforts, if the Common Stock of the Principal Party shall be listed or
admitted to trading on the NYSE or on another national securities exchange, to
list or admit to trading (or continue the listing of) the Rights and the
securities purchasable upon exercise of the Rights on the NYSE or such
securities exchange, or, if the Common Stock of the Principal Party shall not
be listed or admitted to trading on the NYSE or a national securities exchange,
to cause the Rights and the securities receivable upon exercise of the Rights
to be reported by 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

 

21

(iv)          obtain
waivers of any rights of first refusal or preemptive rights in respect of the
Common Stock of the Principal Party subject to purchase upon exercise of
outstanding Rights.

(d)   In
case the Principal Party has a provision in any of its authorized securities or
in its certificate of incorporation or by-laws or other instrument governing
its affairs, which provision would have the effect of (i) causing such
Principal Party to issue (other than to holders of Rights pursuant to this
Section 13), in connection with, or as a consequence of, the consummation
of a transaction referred to in this Section 13, shares of Common Stock or
Common Stock equivalents of such Principal Party at less than the then-current
market price per share thereof (determined pursuant to Section 11(d)
hereof) or securities exercisable for, or convertible into, Common Stock or
Common Stock equivalents of such Principal Party at less than such then-current
market price, or (ii) providing for any special payment, tax or similar
provision 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 canceled, waived or amended, or that the authorized securities shall be
redeemed, so that the applicable provision will have no effect in connection
with, or as a consequence of, the consummation of the proposed transaction.

(e)   The
Company covenants and agrees that it shall not, at any time after a Person
first becomes an Acquiring Person, enter into any transaction of the type
contemplated by Section 13(a)(i)-(iii) hereof if (x) at the time of
or immediately after such consolidation, merger, sale, transfer or other
transaction there are any rights, warrants or other instruments or securities
outstanding or agreements in effect which would substantially diminish or
otherwise eliminate the benefits intended to be afforded by the Rights,
(y) prior to, simultaneously with or immediately after such consolidation,
merger, sale, transfer or other transaction, the stockholders of the Person who
constitutes, or would constitute, the Principal Party for purposes of
Section 13(b) hereof shall have received a distribution of Rights
previously owned by such Person or any of its Affiliates or Associates or
(z) the form or nature of organization of the Principal Party would
preclude or limit the exercisability of the Rights.

Section 14. Fractional Rights and Fractional
Shares.  (a)  The Company shall not be required to issue
fractions of Rights (except prior to the Distribution Date in accordance with
Section 11(n) hereof) or to distribute Right Certificates which evidence
fractional Rights.  In lieu of such
fractional Rights, there shall be paid to the registered holders of the Right
Certificates with regard to which such fractional Rights would otherwise be
issuable, an amount in cash equal to the same fraction of the current market
value of a whole Right.  For the purposes
of this Section 14(a), the current market value of a whole Right shall be
the closing price of the Rights for the Trading Day immediately prior to the date
on which such fractional Rights would have been otherwise issuable.  The closing price for any day shall be the
last sale price, regular way, or, in case no such sale takes place on such day,
the average of the closing bid and asked prices, regular way, in either case as
reported by (w) the principal consolidated transaction reporting system
with respect to securities listed or admitted to trading on the NYSE or,
(x) if the Rights are not listed or admitted to trading on the NYSE, as
reported in the principal consolidated

 

22

transaction reporting system with respect to
securities listed on the principal national securities exchange on which the
Rights are listed or admitted to trading or, (y) if the Rights are not
listed or admitted to trading on any national securities exchange, the last
quoted price or, if not so quoted, the average of the high bid and low asked
prices in the over-the-counter market, as reported by Nasdaq or such other
system then in use or, (z) if on any such date the Rights are not quoted
by any such organization, the average of the closing bid and asked prices as
furnished by a professional market maker making a market in the Rights selected
by the Board of Directors of the Company. 
If on any such date no such market maker is making a market in the
Rights, the fair value of the Rights on such date as determined in good faith
by the Board of Directors of the Company shall be used.

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

(c)   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
upon the exercise or exchange of Rights. 
In lieu of such fractional shares of Common Stock, the Company shall pay
to the registered holders of the Right Certificates at the time such Rights are
exercised or exchanged for shares of Common Stock as herein provided an amount
in cash equal to the same fraction of the current market value of a whole share
of Common Stock (as determined in accordance with Section 11(d)(i) hereof)
for the Trading Day immediately prior to the date of such exercise or exchange.

(d)   The
holder of a Right by the acceptance of the Right expressly waives the right to
receive any fractional Rights or any fractional shares upon exercise or
exchange of a Right (except as provided above).

Section 15. Rights of Action.  All rights of action in respect of this
Rights Agreement, excepting the rights of action given to the Rights Agent
under Section 18 hereof, are vested in the respective registered holders
of the Right Certificates (and, prior to the Distribution Date, the registered
holders of the Common Stock); and any registered holder of any Right
Certificate (or, prior to the Distribution Date, of the Common Stock), without
the consent of the 

 

23

Rights Agent or of the holder of any other Right
Certificate (or, prior to the Distribution Date, of the Common Stock), on such
holder’s own behalf and for such holder’s own benefit, may enforce, and may
institute and maintain any suit, action or proceeding against the Company to
enforce, or otherwise act in respect of, such holder’s right to exercise the
Rights evidenced by such Right Certificate (or, prior to the Distribution Date,
such Common Stock) 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 adequate remedy at
law for any breach of this Rights Agreement and will be entitled to specific
performance of the obligations under, and injunctive relief against actual or
threatened violations of the obligations of any Person subject to, this Rights
Agreement.

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

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

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

(iii)          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 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 Certificates or the Common Stock
certificate made by anyone other than the Company or the Rights Agent) for
all purposes whatsoever, and neither the Company nor the Rights Agent, subject
to Section 7(e) hereof, shall be affected by any notice to the contrary.

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

Section 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 

 

24

disbursements incurred in the administration 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 anything done or
omitted by the Rights Agent in connection with the acceptance and
administration of this Rights Agreement, including the costs and expenses of
defending against any claim of liability arising therefrom, directly or
indirectly.

(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
or certificate for the Preferred Stock or Common Stock or for 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 reasonably believed by it to be genuine
and to be signed, executed and, where necessary, verified or acknowledged, by
the proper Person or Persons, or otherwise upon the advice of counsel as set
forth in Section 20 hereof.

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

(a)  Any corporation into which the
Rights Agent or any successor Rights Agent may be merged or with which it may
be consolidated, or any corporation resulting from any merger or consolidation
to which the Rights Agent or any successor Rights Agent shall be a party, or
any corporation succeeding to the stock transfer or corporate trust powers of
the Rights Agent or any successor Rights Agent, shall be the successor to the
Rights Agent under this 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 corporation would be eligible for appointment as a successor Rights
Agent under the provisions of Section 21 hereof.  In case at the time such successor Rights
Agent shall succeed to the agency created by this Rights Agreement, any of the
Right Certificates shall have been countersigned but not delivered, 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 such 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.

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

Section 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:

 

25

(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 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 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 a certificate signed by any one of the Chief Executive Officer,
President, any Vice President, the Treasurer or the Secretary of the Company
(each, an “Authorized Officer”)
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 to the Company and any other Person only
for its own gross negligence, bad faith or willful misconduct.

(d)   The
Rights Agent shall not be liable for or by reason of any of the statements of
fact or recitals contained in this 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 change in the exercisability of the Rights
(including the Rights becoming void pursuant to Section 11(a)(ii) hereof)
or any adjustment in the terms of the Rights (including the manner, method or
amount thereof) provided for in Section 3, Section 11,
Section 13, Section 23 and Section 24, or the ascertaining of
the existence of facts that would require any such change or adjustment (except
with respect to the exercise of Rights evidenced by Right Certificates after
receipt of a certificate furnished pursuant to Section 12, describing such
change or adjustment); nor shall it by any act hereunder be deemed to make any
representation or warranty as to the authorization or reservation of any shares
of Preferred Stock or other securities to be issued pursuant to this Rights
Agreement or any Right Certificate or as to whether any shares of Preferred
Stock or other securities 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 any person reasonably
believed by the 

 

26

Rights
Agent to be one of the Authorized Officers, and to apply to such Authorized
Officers for advice or instructions in connection with its duties, and it shall
not be liable for any action taken or suffered by it in good faith in
accordance with instructions of any such Authorized Officer or for any delay in
acting while waiting for those instructions. 
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.  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 (5) Business Days after the date any Authorized Officer of the
Company actually receives such application, unless any such Authorized 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 stockholder, director, officer or employee of the Rights
Agent may buy, sell or deal in any of the Rights or other securities of the
Company or become pecuniarily interested in any transaction in which the
Company may be interested, or contract with or lend money to the Company or
otherwise act as fully and freely as though it were not 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 legal entity.

(i)    The
Rights Agent may execute and exercise any of the rights or powers hereby vested
in it or perform any duty hereunder either itself or by or through its
attorneys or agents, and the Rights Agent shall not be answerable or
accountable for any act, default, neglect or misconduct of any such attorneys
or agents or for any loss to the Company resulting from any such act, default,
neglect or misconduct, provided reasonable care was exercised in the selection
and continued employment thereof.

(j)    If,
with respect to any Right Certificate surrendered to the Rights Agent for
exercise or transfer, the 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 not been completed to certify the holder is not an Acquiring Person
(or an Affiliate or Associate thereof) or a transferee thereof, the Rights Agent
shall not take any further action with respect to such requested exercise or
transfer without first consulting with the Company.

Section 21. Change of Rights Agent.  The Rights Agent or any successor Rights
Agent may resign and be discharged from its duties under this Rights Agreement
upon thirty (30) days’ notice in writing mailed to the Company and to each
transfer agent of the Common Stock or the Preferred Stock by registered or
certified mail, and, following the Distribution Date, to the holders of the
Right Certificates by first-class mail. 
In the event the transfer agency relationship in effect between the
Company and the Rights Agent terminates, the Rights Agent will be deemed to
resign automatically on the effective date of such termination; and any
required notice will be sent by the Company. 
The Company may remove the Rights Agent or any successor Rights Agent
upon thirty (30) days’ notice in writing, mailed to the Rights Agent or
successor Rights Agent, as the case may be, and to each transfer agent of the
Common Stock or the

 

27

Preferred Stock by registered or certified mail, and,
following the Distribution Date, 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.  If the Company shall fail to make such
appointment within a period of thirty (30) days after giving notice of
such removal or after it has been notified in writing of such resignation or
incapacity by the resigning or incapacitated Rights Agent or by the holder of a
Right Certificate (who shall, with such notice, submit his Right Certificate
for inspection by the Company), then the registered holder of any Right
Certificate may apply to any court of competent jurisdiction for the
appointment of a new Rights Agent.  Any
successor Rights Agent, whether appointed by the Company or by such a court,
shall be (A) a corporation organized and doing business under the laws of
the United States or any State thereof, which is authorized under such laws to
exercise corporate trust or stock transfer powers and is subject to supervision
or examination by federal or state authority and which has at the time of its
appointment as Rights Agent a combined capital and surplus of at least
$50 million or (B) an affiliate of a corporation 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 or the
Preferred Stock, and, following the Distribution Date, mail a notice thereof in
writing to the registered holders of the Right Certificates.  Failure to give any notice provided for in
this Section 21, however, or any defect therein, shall not affect the
legality or validity of the resignation or removal of the Rights Agent or the
appointment of the successor Rights Agent, as the case may be.

Section 22. Issuance of New Right Certificates.  Notwithstanding any of the provisions of this
Rights Agreement or of the Rights to the contrary, the Company may, at its
option, issue new Right Certificates evidencing Rights in such forms as may be
approved by its Board of Directors to reflect any adjustment or change in the
Purchase Price and the number or kind or class of shares or other securities or
property purchasable under the Right Certificates made in accordance with the
provisions of this Rights Agreement.  In
addition, in connection with the issuance or sale of Common Stock following the
Distribution Date and prior to the Expiration Date, the Company may with
respect to shares of Common Stock so issued or sold pursuant to (i) the
exercise of stock options, (ii) under any employee plan or arrangement, (iii) the
exercise, conversion or exchange of securities, notes or debentures issued by
the Company or (iv) a contractual obligation of 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.

Section 23. Redemption.  (a) 
The Board of Directors of the Company may, at any time prior to such
time as any Person first becomes an Acquiring Person, redeem all but not less
than all the then-outstanding Rights at a redemption price of $.01 per Right,
appropriately adjusted to reflect any stock split, stock dividend or similar
transaction occurring after the date hereof (the “Redemption Price”). 
The redemption of the Rights may be made effective at such time, on such
basis and with such conditions as the Board of Directors in its sole discretion
may 

 

28

establish.  The
Company may, at its option, pay the Redemption Price in cash, shares of Common
Stock (based on the current market price of the Common Stock at the time of
redemption as determined pursuant to Section 11(d)(i) hereof) or any other
form of consideration deemed appropriate by the Board of Directors.

(b)   Immediately
upon the action of the Board of Directors ordering the redemption of the Rights
pursuant to paragraph (a) of this Section 23 (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; provided, however, that the failure to
give, or any defect in, any such notice shall not affect the validity of such
redemption.  Within ten (10) days
after such action of the Board of Directors 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.

Section 24. Exchange.  (a) 
The Board of Directors of the Company may, at its option, at any time
after any Person first becomes an Acquiring Person, exchange all or part of the
then-outstanding and exercisable Rights (which shall not include Rights that
have not become effective or that have become void pursuant to the provisions
of Section 11(a)(ii) 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 (such amount per Right being hereinafter referred to as the “Exchange
Ratio”). 
Notwithstanding the foregoing, the Board of Directors shall not be
empowered to effect such exchange at any time after an Acquiring 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).  The exchange of the
Rights by the Board of Directors may be made effective at such time, on such
basis and with such conditions as the Board of Directors in its sole discretion
may establish.

(b)   Immediately
upon the effectiveness of the action of the Board of Directors of the Company
ordering the exchange of any Rights pursuant to paragraph (a) of this
Section 24 and without any further action and without any notice, the
right to exercise such Rights shall terminate and the only right thereafter of
a holder of such Rights shall be to receive that number of 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; provided, however,
that the failure to give, or any defect in, such notice shall not affect the
validity of such exchange.  The Company
shall promptly mail a notice of any such exchange to all of the holders of the
Rights so exchanged 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

 

29

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 void pursuant to the provisions of Section 11(a)(ii)
hereof) held by each holder of Rights.

(c)   The
Company may at its option substitute and, in the event that there shall not be
sufficient shares of Common Stock issued but not outstanding or authorized but
unissued (and unreserved) to permit an 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 fraction thereof (or equivalent preferred shares as such term is
defined in Section 11(b)) such that the current per share market price
(determined pursuant to Section 11(d) hereof) of one share of Preferred
Stock (or equivalent preferred share) multiplied
by such number or fraction is 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 such exchange.

Section 25. Notice of Certain Events.  (a)  In
case the Company shall at any time after the earlier of the Distribution Date
or the Stock Acquisition Date propose (i) to pay any dividend payable in
stock of any class to the holders of its Preferred Stock or to make any other
distribution to the holders of its Preferred Stock (other than a regular
quarterly cash dividend), (ii) to offer to the holders of its Preferred
Stock rights or warrants to subscribe for or to purchase any additional shares
of Preferred Stock or shares of stock of any class or any other securities,
rights or options, (iii) to effect any reclassification of its Preferred
Stock (other than a reclassification involving only the subdivision or combination
of outstanding Preferred Stock), (iv) to effect the liquidation,
dissolution or winding up of the Company, or (v) to declare or pay any
dividend on the Common Stock payable in Common Stock or to effect a
subdivision, combination or consolidation of the Common Stock (by
reclassification or otherwise than by payment of dividends in Common Stock),
then, in each such case, the Company shall give to each holder of a Right
Certificate, in accordance with Section 26 hereof, a notice of such
proposed action, which shall specify the record date for the purposes of such
stock dividend, or distribution or offering of rights or warrants, or the date
on which such liquidation, dissolution, reclassification, subdivision,
combination, consolidation or winding up is to take place and the date of
participation therein by the holders of the Common Stock and/or Preferred
Stock, if any such date is to be fixed, and such notice shall be so given in
the case of any action covered by clause (i) or (ii) above at least ten (10)
days prior to the record date for determining holders of the Preferred Stock
for purposes of such action, and in the case of any such other action, at least
ten (10) days prior to the date of the taking of such proposed action or
the date of participation therein by the holders of the Common Stock and/or
Preferred Stock, whichever shall be the earlier.

(b)   In
case any event described in Section 11(a)(ii) or Section 13 shall
occur then the Company shall as soon as practicable thereafter give to each
holder of a Right Certificate (or if occurring prior to the Distribution Date,
the holders of the Common Stock) in accordance with Section 26 hereof, a
notice of the occurrence of such event, which notice shall describe such 

 

30

event
and the consequences of such event to holders of Rights under
Section 11(a)(ii) and Section 13 hereof.

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

Celanese Corporation

1001 West LBJ Freeway

Dallas, TX 75234-6034

Attention: General Counsel

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 any Right Certificate to or on the Rights Agent shall be
sufficiently given or made if sent by first-class mail, postage prepaid,
addressed (until another address is filed in writing with the Company) as
follows:

EquiServe Trust Company,
N.A.

250 Royall Street

Canton, MA 02021

Attention:  Client Administration

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

Section 27. Supplements and Amendments.  Except as otherwise provided in this
Section 27, for so long as the Rights are then redeemable, the Company may
in its sole and absolute discretion, and the Rights Agent shall if the Company
so directs, supplement or amend any provision of this Rights Agreement in any
respect without the approval of any holders of the Rights.  At any time when the Rights are no longer
redeemable, except as otherwise provided in this Section 27, the Company
may, and the Rights Agent shall, if the Company so directs, supplement or amend
this Rights Agreement without the approval of any holders of Rights in order to
(i) cure any ambiguity, (ii) correct or supplement any provision
contained 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; provided, however, 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 this Rights Agreement again to become amendable
other than in accordance with this sentence. 
Notwithstanding anything contained in this Rights Agreement to the
contrary, no supplement or amendment shall be made which decreases the
Redemption Price.  Upon the delivery of a
certificate from an appropriate officer of the Company which states that the
supplement or amendment is in compliance with the terms of this
Section 27, the Rights Agent shall execute 

 

31

such supplement or amendment; provided that any
supplement or amendment that does not amend Section 18, Section 19,
Section 20 or Section 21 hereof in a manner adverse to the Rights Agent
shall become effective immediately upon execution by the Company, whether or
not also executed by the Rights Agent.

Section 28. Successors.  All 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.

Section 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; but this Rights Agreement shall be for the
sole and exclusive benefit of the Company, the Rights Agent and the registered
holders of the Right Certificates (and, prior to the Distribution Date, the
Common Stock).

Section 30. Determinations and Actions by the
Board of Directors.  The Board of
Directors of the Company 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 of the Company 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 this Rights Agreement).  All such actions, calculations,
interpretations and determinations (including, for purposes of clause (y)
below, all omissions with respect to the foregoing) that are done or made by
the Board of Directors of the Company in good faith, shall (x) be final,
conclusive and binding on the Company, the Rights Agent, the holders of the
Rights, as such, and all other parties, and (y) not subject the Board of
Directors to any liability to the holders of the Rights.

Section 31. Severability.  If any term, provision, covenant or
restriction of this Rights Agreement or applicable to this Rights Agreement is
held by a court of competent jurisdiction or other authority to be invalid,
void or unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Rights Agreement shall remain in full force and effect and
shall in no way be affected, impaired or invalidated; provided, however, that
notwithstanding anything in this Agreement to the contrary, if any such term,
provision, covenant or restriction is held by such court or authority to be
invalid, void or unenforceable and the Board determines in its good faith
judgment that severing the invalid language from this Agreement would adversely
affect the purpose or effect of this Agreement, the right of redemption set
forth in Section 23 hereof shall be reinstated (with prompt notice to the
Rights Agent) and shall not expire until the close of business on the tenth
Business Day following the date of such determination by the Board.  Without limiting the foregoing, if any
provision requiring a specific group of Directors of the Company to act is held
to by any court of competent jurisdiction or other authority to be invalid,
void or unenforceable, such determination shall then be made by the Board in
accordance with applicable law and the Company’s certificate of incorporation
and bylaws.

 

32

Section 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 Delaware and for all purposes shall be governed by and
construed in accordance with the laws of such State applicable to contracts to
be made and performed entirely within such State.

Section 33.  Counterparts.  This 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.

Section 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.

Section 35.  General Provision Regarding
References to Dividends, Stock Splits. 
Whenever in this Agreement reference is made (i) to dividends declared
or paid in respect of the Common Stock, such references shall be deemed to
exclude the Mandatory Dividends (as defined in the certificate of incorporation
of the Company) and (ii) to a stock split, such references shall be deemed to
exclude the stock split contemplated by the preliminary prospectus for the
initial public offering of the Series A Common Stock, dated January 5, 2005, as
such stock split is definitively implemented in the certificate of
incorporation of the Company.

Section 36.  Force Majeure.  Notwithstanding anything to the contrary contained
herein, Rights Agent shall not be liable for any delays or failures in
performance resulting from acts beyond its reasonable control including,
without limitation, acts of God, terrorist acts, shortage of supply, breakdowns
or malfunctions, interruptions or malfunction of computer facilities, or loss
of data due to power failures or mechanical difficulties with information
storage or retrieval systems, labor difficulties, war, or civil unrest.

*              *              *

33

 

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

	
   

  	
   

  	
   

  	
  CELANESE CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  EQUISERVE
  TRUST COMPANY, N.A.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT A

 

FORM

OF

CERTIFICATE OF DESIGNATIONS

OF

SERIES A JUNIOR
PARTICIPATING PREFERRED STOCK

OF

CELANESE CORPORATION

(Pursuant to Section 151 of the

General Corporation Law of
the State of Delaware)

___________________

Celanese Corporation, a corporation organized and
existing under the General Corporation Law of the State of Delaware (the “Company”),
hereby certifies that the following resolution was duly adopted by the Board of
Directors of the Company as required by Section 151 of the General
Corporation Law of the State of Delaware on
[                  ],
2005

RESOLVED, that pursuant to
the authority vested in the Board of Directors of the Company (hereinafter
being referred to as the “Board of Directors” or the “Board”) in
accordance with the provisions of the Company’s Amended and Restated
Certificate of Incorporation (hereinafter being referred to as the “Certificate
of Incorporation”), the Board of Directors hereby creates a series of
Preferred Stock, par value $0.01 per share, of the Company, to be designated
the “Series A Junior Participating Preferred Stock” and hereby adopts the
resolution establishing the designations, number of shares, preferences, voting
powers and other rights and the restrictions and limitations thereof, of the
shares of such series as set forth below:

Section 1.     Designation and Amount.  The shares of such series shall be designated
as “Series A Junior Participating Preferred Stock” (the “Series A
Preferred Stock”) and the number of shares constituting the Series A
Preferred Stock shall be 500,000.  Such
number of shares may be increased or decreased by resolution of the Board of
Directors; provided, that no decrease shall reduce the number of shares
of Series A Preferred Stock to a number less than the number of shares
then outstanding plus the number of shares reserved for issuance upon the
exercise of outstanding options, rights or warrants or upon the conversion of
any outstanding securities issued by the Company convertible into Series A
Preferred Stock.

Section
2.     Dividends and Distributions

(A)  Subject to the rights of the holders of any
shares of any series of Preferred Stock of the Company (the “Preferred Stock”)
(or any similar stock) ranking prior and superior to the Series A
Preferred Stock with respect to dividends, the holders of shares of
Series A Preferred Stock, in preference to the

 

A-1

 

holders
of Common Stock, par value $0.0001 per share, of the Company (the “Common
Stock”), consisting of Series A Common Stock (the “Series A Common Stock”)
and (for so long as any shares of such series remain outstanding) Series B
Common Stock (“Series B Common Stock”)and of any other stock of the Company
ranking junior to the Series A Preferred Stock, shall be entitled to
receive, when, as and if declared by the Board of Directors out of funds
legally available for the purpose, quarterly dividends payable in cash on the
last day of January, April, July, and October in each year (each such date
being referred to herein as a “Dividend Payment Date”), commencing on
the first Dividend Payment Date after the first issuance of a share or fraction
of a share of Series A Preferred Stock (the “Issue Date”), in an
amount per share (rounded to the nearest cent) equal to the greater of
(a) $1 or (b) subject to the provision for adjustment hereinafter set
forth, 1,000 times the aggregate per share amount of all cash dividends and
other than the Mandatory Dividends (as defined in the Certificate of
Incorporation), and 1,000 times the aggregate per share amount (payable in
kind) of all non-cash dividends or other distributions other than a
dividend payable in shares of Common Stock, declared on the Common Stock since
the immediately preceding Dividend Payment Date or, with respect to the first
Dividend Payment Date, since the first issuance of any share or fraction of a
share of Series A Preferred Stock. 
In the event the Company shall at any time after the Issue Date declare
and pay any dividend on the Common Stock payable in shares of Common Stock
(other than the Mandatory Dividends), or effect a subdivision or combination or
consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock) into a
greater or lesser number of shares of Common Stock, then in each such case the
amount to which holders of shares of Series A Preferred Stock were
entitled immediately prior to such event under clause (b) of the preceding
sentence shall be adjusted by multiplying such amount by a fraction, the
numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

(B)   The Company shall declare a dividend or
distribution on the Series A Preferred Stock as provided in
paragraph (A) of this Section immediately after it declares a dividend or
distribution on the Common Stock (other than a dividend payable in shares of
Common Stock); provided that, in the event no dividend or distribution
shall have been declared on the Common Stock during the period between any
Dividend Payment Date and the next subsequent Dividend Payment Date, a dividend
of $1 per share on the Series A Preferred Stock shall nevertheless be
payable, when, as and if declared, on such subsequent Dividend Payment Date.

(C)   Dividends shall begin to accrue and be
cumulative, whether or not earned or declared, on outstanding shares of
Series A Preferred Stock from the Dividend Payment Date next preceding the
date of issue of such shares, unless the date of issue of such shares is prior
to the record date for the first Dividend Payment Date, in which case dividends
on such shares shall begin to accrue from

 

A-2

 

the
date of issue of such shares, or unless the date of issue is a Dividend Payment
Date or is a date after the record date for the determination of holders of
shares of Series A Preferred Stock entitled to receive a quarterly
dividend and before such Dividend Payment Date, in either of which events such
dividends shall begin to accrue and be cumulative from such Dividend Payment
Date.  Accrued but unpaid dividends shall
not bear interest.  Dividends paid on the
shares of Series A Preferred Stock in an amount less than the total amount
of such dividends at the time accrued and payable on such shares shall be
allocated pro rata on a share-by-share basis among all such shares at the time
outstanding.  The Board of Directors may
fix a record date for the determination of holders of shares of Series A
Preferred Stock entitled to receive payment of a dividend or distribution
declared thereon, which record date shall be not more than sixty (60) days
prior to the date fixed for the payment thereof.

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

(A)  Subject to the provision for adjustment
hereinafter set forth and except as otherwise provided in the Certificate of
Incorporation or required by law, each share of Series A Preferred Stock
shall entitle the holder thereof to 1,000 votes on all matters upon which the
holders of the Common Stock of the Company are entitled to vote.  In the event the Company shall at any time
after the Issue Date declare or pay any dividend on the Common Stock payable in
shares of Common Stock (other than the Mandatory Dividends), or effect a
subdivision or combination or consolidation of the outstanding shares of Common
Stock (by reclassification or otherwise than by payment of a dividend in shares
of Common Stock) into a greater or lesser number of shares of Common Stock,
then in each such case the number of votes per share to which holders of shares
of Series A Preferred Stock were entitled immediately prior to such event
shall be adjusted by multiplying such number by a fraction, the numerator of
which is the number of shares of Common Stock outstanding immediately after
such event and the denominator of which is the number of shares of Common Stock
that were outstanding immediately prior to such event.

(B)   Except as otherwise provided herein, in the
Certificate of Incorporation or in any other Certificate of Designations
creating a series of Preferred Stock or any similar stock, and except as
otherwise required by law, the holders of shares of Series A Preferred
Stock and the holders of shares of Common Stock and any other capital stock of
the Company having general voting rights shall vote together as one class on
all matters submitted to a vote of stockholders of the Company.

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

 

A-3

 

(D)  If, at the time of any annual meeting of
stockholders for the election of directors, the equivalent of six quarterly
dividends (whether or not consecutive) payable on any share or shares of
Series A Preferred Stock are in default, the number of directors
constituting the Board of Directors of the Company shall be increased by
two.  In addition to voting together with
the holders of Common Stock for the election of other directors of the Company,
the holders of record of the Series A Preferred Stock, voting separately
as a class to the exclusion of the holders of Common Stock shall be entitled at
said meeting of stockholders (and at each subsequent annual meeting of
stockholders), unless all dividends in arrears on the Series A Preferred
Stock have been paid or declared and set apart for payment prior thereto, to
vote for the election of two directors of the Company, the holders of any
Series A Preferred Stock being entitled to cast a number of votes per
share of Series A Preferred Stock as is specified in paragraph (A) of
this Section 3.  Each such
additional director shall serve until the next annual meeting of stockholders
for the election of directors, or until his successor shall be elected and
shall qualify, or until his right to hold such office terminates pursuant to
the provisions of this Section 3(D). 
Until the default in payments of all dividends which permitted the
election of said directors shall cease to exist, any director who shall have
been so elected pursuant to the provisions of this Section 3(D) may be
removed at any time, without cause, only by the affirmative vote of the holders
of the shares of Series A Preferred Stock at the time entitled to cast a
majority of the votes entitled to be cast for the election of any such director
at a special meeting of such holders called for that purpose, and any vacancy
thereby created may be filled by the vote of such holders.  If and when such default shall cease to
exist, the holders of the Series A Preferred Stock shall be divested of
the foregoing special voting rights, subject to revesting in the event of each
and every subsequent like default in payments of dividends.  Upon the termination of the foregoing special
voting rights, the terms of office of all persons who may have been elected
directors pursuant to said special voting rights shall forthwith terminate, and
the number of directors constituting the Board of Directors shall be reduced by
two.  The voting rights granted by this
Section 3(D) shall be in addition to any other voting rights granted to
the holders of the Series A Preferred Stock in this Section 3.

Section
4.     Certain Restrictions.

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

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

 

A-4

 

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

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

(iv)          redeem or purchase
or otherwise acquire for consideration any shares of Series A Preferred
Stock, or any shares of stock ranking on a parity (either as to dividends or
upon liquidation, dissolution or winding up) with the Series A Preferred
Stock, except in accordance with a purchase offer made in writing or by
publication (as determined by the Board 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 Company shall not permit any subsidiary
of the Company to purchase or otherwise acquire for consideration any shares of
stock of the Company unless the Company could, under paragraph (A) of this
Section 4, purchase or otherwise acquire such shares at such time and in
such manner.

Section 5.     Reacquired Shares.  Any shares of Series A Preferred Stock
purchased or otherwise acquired by the Company in any manner whatsoever shall
be retired and cancelled promptly after the acquisition thereof.  All such shares shall upon their retirement
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 any conditions and
restrictions on issuance set forth herein.

Section 6.     Liquidation, Dissolution or Winding Up.  Upon any liquidation, dissolution or winding
up of the Company, no distribution shall be made (A) to the holders of the
Common Stock or of shares of any other stock of the Company ranking junior,
upon liquidation, dissolution or winding up, to the Series A Preferred
Stock unless, prior thereto, the holders of shares of Series A Preferred
Stock shall have received $1,000 per share, plus an amount equal to accrued and
unpaid dividends and distributions thereon, whether or not earned or declared, to
the date of such payment, provided that the holders of shares of Series A
Preferred Stock shall be

 

A-5

 

entitled to receive an aggregate 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 shares of Common
Stock, or (B) to the holders of shares of stock ranking on a parity upon
liquidation, dissolution or winding up with the Series A Preferred Stock,
except distributions made ratably on the Series A Preferred Stock and all
such parity stock in proportion to the total amounts to which the holders of
all such shares are entitled upon such liquidation, dissolution or winding up.  In the event, however, that there are not
sufficient assets available to permit payment in full of the Series A
Preferred Stock liquidation preference and the liquidation preferences of all
other classes and series of stock of the Company, if any, that rank on a parity
with the Series A Preferred Stock in respect thereof, then the assets
available for such distribution shall be distributed ratably to the holders of
the Series A Preferred Stock and the holders of such parity shares in the
proportion to their respective liquidation preferences.  In the event the Company shall at any time
after the Issue Date declare or pay any dividend on the Common Stock payable in
shares of Common Stock other than the Mandatory Dividends, or effect a subdivision
or combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then in each
such case the aggregate amount to which holders of shares of Series A
Preferred Stock were entitled immediately prior to such event under the proviso
in clause (A) 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.

Neither
the merger or consolidation of the Company into or with another entity nor the
merger or consolidation of any other entity into or with the Company (nor the
sale of all or substantially all of the assets of the Company) shall be deemed
to be a liquidation, dissolution or winding up of the Company within the
meaning of this Section 6.

Section 7.     Consolidation, Merger, etc.  In case the Company shall enter into any
consolidation, merger, combination or other transaction in which the shares of
Common Stock are converted into, exchanged for or changed into other stock or
securities, cash and/or any other property, then in any such case each share of
Series A Preferred Stock shall at the same time be similarly converted
into, exchanged for or changed into 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 converted, exchanged or converted. 
In the event the Company shall at any time after the Issue Date declare
or pay any dividend on the Common Stock payable in shares of Common Stock other
than the Mandatory Dividends, or effect a subdivision or combination or
consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock) into a
greater or lesser number of shares of Common Stock, then in each such case the
amount set forth in the preceding sentence with respect to the conversion,
exchange or change of shares of Series A Preferred Stock shall be adjusted
by multiplying such amount by a fraction, the numerator of which is the
number of shares of Common Stock outstanding immediately after such event and
the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

 

A-6

 

Section 8.     No Redemption.  The shares of Series A Preferred Stock
shall not be redeemable from any holder.

Section 9.     Rank.  The Series A Preferred Stock shall rank,
with respect to the payment of dividends and the distribution of assets upon
liquidation, dissolution or winding up of the Company, junior to all other
series of Preferred Stock and senior to the Common Stock.

Section 10.     Amendment.  If any proposed amendment to the Certificate
of Incorporation (including this Certificate of Designations) would alter,
change or repeal any of the preferences, powers or special rights given to the
Series A Preferred Stock so as to affect the Series A Preferred Stock
adversely, then the holders of the Series A Preferred Stock shall be
entitled to vote separately as a class upon such amendment, and the affirmative
vote of two-thirds of the outstanding shares of the Series A
Preferred Stock, voting separately as a class, shall be necessary for the
adoption thereof, in addition to such other vote as may be required by the
General Corporation Law of the State of Delaware.

Section 11.     Fractional Shares.  Series A Preferred Stock 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 to have the benefit of all other rights of
holders of Series A Preferred Stock.

 

A-7

 

IN
WITNESS WHEREOF, this Certificate of Designations is executed on behalf of the
Company by ______________, President of the Company on _________ __, 200_.

_____________________________

Name: David Weidman

Title:  Chief Executive Officer and President

 

A-8

EXHIBIT
B

FORM
OF RIGHT CERTIFICATE

	
  Certificate No. R- ____

  	
  ___
  Rights

  

 

NOT EXERCISABLE AFTER [                ,
2015] OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS.  THE RIGHTS ARE SUBJECT TO REDEMPTION AT $.01
PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.  UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN
THE RIGHTS AGREEMENT, RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR
BECOMES AN ACQUIRING PERSON (AS DEFINED IN THE RIGHTS AGREEMENT) AND CERTAIN
TRANSFEREES THEREOF WILL BECOME NULL AND VOID AND WILL NO LONGER BE
TRANSFERABLE.

Right Certificate

CELANESE CORPORATION

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
[________], 2005 as the same may be amended from time to time (the “Rights
Agreement”), between Celanese Corporation, a Delaware corporation (the “Company”),
and EquiServe Trust Company, N.A. (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 City time, on
[________], 2005 at the office or agency of the Rights Agent designated for
such purpose, or of its successor as Rights Agent, one one-thousandth of
a fully paid non-assessable share of Series A Junior Participating
Preferred Stock, par value $0.01 per share (the “Preferred Stock”), of
the Company, at a purchase price of $[       
] per one one-thousandth of a share of Preferred Stock (the “Purchase
Price”), upon presentation and surrender of this Right Certificate with the
Form of Election to Purchase duly executed. 
The number of Rights evidenced by this Right Certificate (and the number
of one one-thousandths of a share of Preferred Stock which may be purchased
upon exercise hereof) set forth above, and the Purchase Price set forth above,
are the number and Purchase Price as of [________], 2005, based on the
Preferred Stock as constituted at such date. 
As provided in the Rights Agreement, the Purchase Price, the number of
one one-thousandths of a share of Preferred Stock (or other securities or
property) which may be purchased upon the exercise of the Rights and the number
of Rights evidenced by this Right Certificate are subject to modification and
adjustment upon the happening of certain events.

This Right Certificate is
subject to all of the terms, provisions and conditions of the Rights Agreement,
which terms, provisions and conditions are hereby incorporated herein by
reference and made a part hereof and to which Rights Agreement reference is
hereby made for a full description of the rights, limitations of rights,
obligations, duties and immunities hereunder

 

B-1

 

of the Rights Agent, the
Company and the holders of the Right Certificates.  Copies of the Rights Agreement are on file at
the principal executive offices of the Company. 
The Company will mail to the holder of this Right Certificate a copy of
the Rights Agreement without charge after receipt of a written request
therefor.

This Right Certificate, with
or without other Right Certificates, upon surrender at the office or agency 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 to purchase a like aggregate number of shares of
Preferred Stock as the Rights evidenced by the Right Certificate or Right
Certificates surrendered shall have entitled such holder to purchase.  If this Right Certificate shall be exercised
in part, the holder shall be entitled to receive upon surrender hereof another
Right Certificate or Right Certificates for the number of whole Rights not
exercised.

Subject to the provisions of
the Rights Agreement, the Rights evidenced by this Certificate (i) may be
redeemed by the Company at a redemption price of $0.01 per Right or
(ii) may be exchanged in whole or in part for shares of Preferred Stock or
shares of the Company’s Common Stock, par value $0.01 per share.

No fractional shares of
Preferred Stock or Series A Common Stock will be issued upon the exercise or
exchange of any Right or Rights evidenced hereby (other than fractions of
Preferred Stock which are integral multiples of one one-thousandth of a share
of Preferred Stock, which may, at the election of the Company, be evidenced by
depositary receipts), but in lieu thereof a cash payment will be made, as
provided in the Rights Agreement.

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

 

B-2

 

WITNESS the facsimile
signature of the proper officers of the Company and its corporate seal.  Dated as of _____________ __, ____.

	
  ATTEST:

  	
   

  	
  CELANESE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Countersigned:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  as Rights Agent

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  	
   

  	
   

  

 

B-3

 

Form of Reverse Side of
Right Certificate

FORM OF ASSIGNMENT

(To be executed by the registered holder if such

holder
desires to transfer the Right Certificate)

FOR VALUE RECEIVED
_________________________ hereby sells, assigns and transfer unto
___________________________

____________________________________________________________

(Please print name and address of transferee)

____________________________________________________________

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

Dated: ______________, ____

______________________________

Signature

Signature Guaranteed:

Signatures must be
guaranteed by a bank, trust company, broker, dealer or other eligible
institution participating in a recognized signature guarantee medallion
program.

The undersigned hereby
certifies that the Rights evidenced by this Right Certificate are not
beneficially owned by, were not acquired by the undersigned from, and are not
being sold, assigned or transferred to, an Acquiring Person or an Affiliate or
Associate thereof (as defined in the Rights Agreement).

______________________________

Signature

 

 

B-4

 

Form of Reverse Side of
Right Certificate — continued

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires to exercise

Rights represented by the Rights
Certificate)

To the Rights Agent:

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

______________________________________________________________

(Please print name and address)

______________________________________________________________

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

Please insert social security

or other identifying
number: 
______________________________________

______________________________________________________________

(Please print name and address)

______________________________________________________________

Dated:  ________________, ___

____________________________

Signature

                                                                                                                                                                                                                                                                                                                                                        (Signature must conform to holder
 specified on Right Certificate)

Signature Guaranteed:

Signatures must be
guaranteed by a bank, trust company, broker, dealer or other eligible
institution participating in a recognized signature guarantee medallion
program.

The undersigned hereby
certifies that the Rights evidenced by this Right Certificate are not
beneficially owned by, were not acquired by the undersigned from, and are not
being sold, assigned or transferred to, an Acquiring Person or an Affiliate or
Associate thereof (as defined in the Rights Agreement).

______________________________

Signature

 

B-5

 

Form of Reverse Side of
Right Certificate — continued

 

NOTICE

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

In the event the
certification set forth above in the Form of Assignment or the Form of Election
to Purchase, as the case may be, is not completed, such Assignment or Election
to Purchase will not be honored.

 

 

B-6

 

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

SUMMARY OF RIGHTS TO PURCHASE

Shares of Preferred Stock

On [________], 2005 the
Board of Directors of Celanese Corporation, a Delaware corporation (the “Company”),
declared a dividend of one preferred share purchase right (a “Right”)
for each outstanding share of Common Stock, par value $0.0001 per share, of the
Company (the “Common Stock”), consisting of Series A Common Stock (the “Series
A Common Stock”) and (for so long as any shares of such series remain
outstanding) Series B Common Stock (“Series B Common Stock”).  The dividend is payable on [________], 2005
to the stockholders of record as of the close of business on [________], 2005
(the “Record Date”).  Each Right
entitles the registered holder to purchase from the Company one one-thousandth
of a share of Series A Junior Participating Preferred Stock, par value
$0.01 per share (the “Preferred Stock”), of the Company at a price of
$[        ] per one one-thousandth of a
share of Preferred Stock (as the same may be adjusted, the “Purchase Price”).  The description and terms of the Rights are
set forth in a Rights Agreement, dated as of [               ],
2005 (as the same may be amended from time to time, the “Rights Agreement”),
between the Company and EquiServe Trust Company, N.A., as Rights Agent (the “Rights
Agent”).

Until the close of business
on the earlier of (i) the tenth (10th) day after the first
date of a public announcement that a person (other than an Exempted Entity (as
defined below)) or group of affiliated or associated persons (an “Acquiring
Person”) has acquired beneficial ownership of 15% or more of the shares of
Common Stock then outstanding or (ii) the tenth (10th) business day (or such later
date as may be determined by action of the Board of Directors prior to such
time as any person or group of affiliated persons becomes an Acquiring Person)
after the date of commencement of, or the first public announcement of
an intention to commence,
a tender offer or exchange offer the consummation of which would result in the
beneficial ownership by a person (other than an Exempted Entity) or group of
15% or more of the shares of Common Stock then outstanding (the earlier of such
dates being herein referred to as the “Distribution Date”), the Rights
will be evidenced by the shares of Common Stock
represented by certificates or by a current ownership statement issued with
respect to uncertificated shares of Common Stock in lieu of such a certificate
for Common Stock outstanding as of the Record Date (an “Ownership Statement”),
together with a copy of the summary of rights disseminated in connection with
the original dividend of Rights.

“Exempted Entity”
shall mean (1) the Company, (2) any Subsidiary (as defined below) of
the Company (in the case of subclauses (1) and (2) including, without
limitation, in its fiduciary capacity), (3) any employee benefit plan of
the Company or of any Subsidiary of the Company, (4) any entity or trustee
holding Common Stock for or pursuant to the terms of any such plan or for the
purpose of funding any such plan or funding other employee benefits for
employees of the Company or of any Subsidiary of the Company, (5) any BCP
Entity, (6) any BCP Direct Transferee, or (7) any BCP Indirect
Transferee,; provided, however, that any BCP 

 

C-1

 

Entity, any BCP Direct
Transferee, or any BCP Indirect Transferee shall cease to be an Exempted Entity
as of the date that such BCP Entity, BCP Direct Transferee, or BCP Indirect
Transferee ceases to beneficially own 15% or more of the shares of the then
outstanding Common Stock.

“BCP Direct Transferee”
shall mean any Person that acquires directly from any BCP Entity beneficial
ownership of 15% or more of the then outstanding Common Stock.

“BCP Entity” shall
mean Blackstone Capital Partners (Cayman) Ltd. 1, Blackstone Capital
Partners (Cayman) Ltd. 2 or Blackstone Capital Partners (Cayman)
Ltd. 3, or any Affiliate thereof that directly or indirectly acquires
beneficial ownership of 15% or more of the shares of the then outstanding
Common Stock, except for the Company and its Subsidiaries.

“BCP Indirect Transferee” shall mean any Person
that acquires directly from any BCP Direct Transferee or any other BCP Indirect
Transferee beneficial ownership of 15% or more of the then outstanding Common
Stock.

The Rights Agreement
provides that, until the Distribution Date (or earlier redemption or expiration
of the Rights), the Rights will be transferable only in connection with the
transfer of Common Stock.  Until the
Distribution Date (or earlier redemption or expiration of the Rights), the
surrender for transfer of any certificates for shares of Common Stock, or the
transfer of any shares of Common Stock represented by an Ownership Statement,
outstanding as of the Record Date, even without a notation incorporating the
Rights Agreement by reference or a copy of this Summary of Rights, will also
constitute the transfer of the Rights associated with the shares of Common
Stock represented by such certificate or Ownership Statement.  As soon as practicable following the
Distribution Date, separate certificates evidencing the Rights (“Right
Certificates”) will be mailed to holders of record of the Common Stock as
of the close of business on the Distribution Date and such separate Right
Certificates alone will evidence the Rights.

The Rights are not
exercisable until the Distribution Date. 
The Rights will expire on [                 ,
2015] (the “Final Expiration Date”), unless the Final Expiration Date is
extended or unless the Rights are earlier redeemed or exchanged by the Company,
in each case as described below.

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 or purchase Preferred Stock at a price, or securities
convertible into Preferred Stock with a conversion price, less than the then-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 regular periodic cash dividends or dividends payable in Preferred
Stock) or of subscription rights or warrants (other than those referred to
above).

The Rights are also subject
to adjustment in the event of a stock dividend on the Common Stock payable in
shares of Common Stock (other than certain mandatory dividends on

 

C-2

 

the Series B Common Stock) or
subdivisions, consolidations or combinations of the Common Stock occurring, in
any such case, prior to the Distribution Date.

Shares of Preferred Stock
purchasable upon exercise of the Rights will not be redeemable.  Each share of Preferred Stock will be
entitled, when, as and if declared, to a minimum preferential quarterly
dividend payment of the greater of (a) $1 per share and (b) an amount
equal to 1,000 times the dividend declared per share of Common Stock (other
than certain mandatory dividends paid on the Series B Common Stock).  In the event of liquidation, dissolution or
winding up of the Company, the holders of the Preferred Stock will be entitled
to a minimum preferential liquidation payment of $1,000 per share (plus
any accrued but unpaid dividends) but will be entitled to an aggregate 1,000
times the payment made per share of Common Stock.  Each share of Preferred Stock will have 1,000
votes, voting together with the Common Stock. 
Finally, in the event of any merger, consolidation or other transaction
in which shares of Common Stock are converted or exchanged, each share of
Preferred Stock will be entitled to receive 1,000 times the amount received per
share of Common Stock.  These rights are
protected by customary antidilution provisions.

Because of the nature of the
Preferred Stock’s dividend, liquidation and voting rights, the value of the one
one-thousandth interest in a share of Preferred Stock purchasable upon exercise
of each Right should approximate the value of one share of Common Stock.

In the event that any person
or group of affiliated or associated persons becomes an Acquiring Person, each
holder of a Right, other than Rights beneficially owned by the Acquiring Person
(which will thereupon become void), will thereafter have the right to receive
upon exercise of a Right and payment of the Purchase Price, that number of
shares of Series A Common Stock having a market value of two times the Purchase
Price.

In the event that, after a
person or group has become an Acquiring Person, the Company is acquired in a
merger or other business combination transaction or 50% or more of its
consolidated assets or earning power are sold, proper provision will be made so
that each holder of a Right (other than Rights beneficially owned by an
Acquiring Person which will have become void) will thereafter have the right to
receive, upon the exercise thereof at the then-current exercise price of the
Right, that number of shares of common stock of the person with whom the
Company has engaged in the foregoing transaction (or its parent), which number
of shares at the time of such transaction will have a market value of two times
the Purchase Price.

At any time after any person
or group becomes an Acquiring Person and prior to the acquisition by such
person or group of 50% or more of the outstanding shares of Common Stock or the
occurrence of an event described in the prior paragraph, the Board of Directors
of the Company may exchange the Rights (other than Rights owned by such person
or group which will have become void), in whole or in part, at an exchange
ratio of one share of Series A Common Stock, or a fractional share of Preferred
Stock (or of a share of a similar class or series of the Company’s preferred
stock having similar rights, preferences and privileges) of equivalent value,
per Right (subject to adjustment).

With certain exceptions, no
adjustment in the Purchase Price will be required until cumulative adjustments
require an adjustment of at least 1% in such Purchase Price.  No

 

C-3

 

fractional shares of
Preferred Stock will be issued (other than fractions which are integral
multiples of one one-thousandth of a share of Preferred Stock, which may, at
the election of the Company, be evidenced by depositary receipts) and in lieu
thereof, an adjustment in cash will be made based on the market price of the
Preferred Stock on the last trading day prior to the date of exercise.

At any time prior to the
time an Acquiring Person becomes such, the Board of Directors of the Company
may redeem the Rights in whole, but not in part, at a price of $.01 per Right
(the “Redemption Price”).  The
redemption of the Rights may be made effective at such time, on such basis and
with such conditions as the Board of Directors in its sole discretion may
establish.  Immediately upon any
redemption of the Rights, the right to exercise the Rights will terminate and
the only right of the holders of Rights will be to receive the Redemption
Price.

For so long as the Rights
are then redeemable, the Company may, except with respect to the Redemption
Price, amend the Rights Agreement in any manner.  After the Rights are no longer redeemable,
the Company may, except with respect to the Redemption Price, amend the Rights
Agreement in any manner that does not adversely affect the interests of holders
of the Rights.

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

A copy of the Rights
Agreement has been filed with the Securities and Exchange Commission as an
Exhibit to a Registration Statement on Form 8-A dated [               ],
2005.]  A copy of the Rights Agreement is
available free of charge from the Company. 
This summary description of the Rights does not purport to be complete
and is qualified in its entirety by reference to the Rights Agreement, as the
same may be amended from time to time, which is hereby incorporated herein by
reference.

 

C-4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]