Document:

EX-4.1

Exhibit 4.1

RIGHTS AGREEMENT

between

COMMVAULT SYSTEMS, INC.

and

Registrar and Transfer Company

Rights Agent

Dated as of November 14, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	Section 1.

	 	Certain Definitions
	 	 	1	 
	Section 2.

	 	Appointment of Rights Agent
	 	 	7	 
	Section 3.

	 	Issue of Rights Certificates
	 	 	7	 
	Section 4.

	 	Form of Rights Certificates
	 	 	8	 
	Section 5.

	 	Countersignature and Registration
	 	 	9	 
	Section 6.

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

	 	 	10	 
	Section 7.

	 	
Exercise of Rights; Purchase Price
	 	 	10	 
	Section 8.

	 	Cancellation and Destruction of Rights Certificates
	 	 	12	 
	Section 9.

	 	Reservation and Availability of Capital Stock
	 	 	12	 
	Section 10.

	 	Preferred Stock Record Date
	 	 	14	 
	Section 11.

	 	Adjustment of Purchase Price, Number and Kind of Shares or
Number of Rights
	 	 	14	 
	Section 12.

	 	Certificate of Adjusted Purchase Price or Number of Shares
	 	 	21	 
	Section 13.

	 	Consolidation, Merger or Sale or Transfer of Assets or Earning Power
	 	 	21	 
	Section 14.

	 	Fractional Rights and Fractional Shares
	 	 	24	 
	Section 15.

	 	Rights of Action
	 	 	25	 
	Section 16.

	 	Agreement of Rights Holders
	 	 	25	 
	Section 17.

	 	Rights Certificate Holder Not Deemed a Stockholder
	 	 	26	 
	Section 18.

	 	Concerning the Rights Agent
	 	 	26	 
	Section 19.

	 	Merger or Consolidation or Change of Name of Rights Agent
	 	 	27	 
	Section 20.

	 	Duties of Rights Agent
	 	 	27	 
	Section 21.

	 	Change of Rights Agent
	 	 	29	 
	Section 22.

	 	Issuance of New Rights Certificates
	 	 	30	 
	Section 23.

	 	Redemption and Termination
	 	 	30	 
	Section 24.

	 	Exchange
	 	 	31	 
	Section 25.

	 	Notice of Certain Events
	 	 	32	 
	Section 26.

	 	Notices
	 	 	33	 
	Section 27.

	 	Supplements and Amendments
	 	 	34	 
	Section 28.

	 	Successors
	 	 	34	 
	Section 29.

	 	Determinations and Actions by the Board of Directors, etc
	 	 	34	 

i

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	Section 30.

	 	Benefits of this Agreement
	 	 	35	 
	Section 31.

	 	Severability
	 	 	35	 
	Section 32.

	 	Governing Law
	 	 	35	 
	Section 33.

	 	Counterparts
	 	 	35	 
	Section 34.

	 	Descriptive Headings
	 	 	35	 

ii

 

	 	 	 
	Exhibit A

	— 	Form of Certificate of Designation
	Exhibit B

	— 	Form of Rights Certificate

iii

 

RIGHTS AGREEMENT

     Rights Agreement, dated as of November 14, 2008(the “Agreement”), by and between
CommVault Systems, Inc., a Delaware corporation (the “Company”), and Registrar and Transfer
Company, a New Jersey corporation (the “Rights Agent”).

WITNESSETH:

     WHEREAS, the Board of Directors of the Company has authorized the issuance of one Right (as
hereinafter defined) in respect of, and to be issued together with, each share of common stock, par
value $0.01 per share, of the Company (the “Common Stock”) issued and outstanding as of the
close of business on November 24, 2008 (the “Record Date”); and the Board of Directors of
the Company has authorized the issuance of one Right (as such number may hereinafter be adjusted
pursuant to the provisions of Section 11(p) hereof) for each share of Common Stock of the
Company issued (whether originally issued or delivered from the Company’s treasury) between the
Record Date and the earlier of the Distribution Date (as hereinafter defined) and the Expiration
Date (as hereinafter defined), and, in certain circumstances provided for in Section 22
hereof, after the Distribution Date, each Right initially representing the right to purchase one
Fractional Share (as hereinafter defined) of Preferred Stock, upon the terms and subject to the
conditions hereinafter set forth (the “Rights”).

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

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

     “Acquiring Person” shall mean any Person who or which, together with all Affiliates
and Associates of such Person, shall be the Beneficial Owner of 15% or more of the shares of Common
Stock then outstanding, but shall not include any Exempt Person; provided, however,
that a Person shall not be or become an Acquiring Person if such Person, together with its
Affiliates and Associates, shall become the Beneficial Owner of 15% or more of the shares of Common
Stock then outstanding solely as a result of a reduction in the number of shares of Common Stock
outstanding due to the repurchase of Common Stock by the Company unless and until such time as (x)
such Person or any Affiliate or Associate of such Person shall purchase or otherwise become the
Beneficial Owner of additional shares of Common Stock constituting 1% or more of the
then-outstanding shares of Common Stock (other than as pursuant to a dividend or distribution paid
or made by the Company on the Common Stock then outstanding or pursuant to a split or subdivision
of the then outstanding Common Stock) or (y) any other Person (or Persons) who is (or collectively
are) the Beneficial Owner of shares of Common Stock constituting 1% or more of the then-outstanding
shares of Common Stock shall become an Affiliate or Associate of such Person; and provided,
further, that if the Board of Directors, with the concurrence of a majority of the members
of the Board of Directors who are not such Person or representatives, nominees, Affiliates or
Associates of such Person, determines in good faith that a Person that would otherwise be an
“Acquiring Person” has become such inadvertently (including, without limitation, because (1) such
Person was unaware that it beneficially owned a percentage of Common Stock that would otherwise
cause such Person to be an “Acquiring

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Person” or (2) 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 Agreement)
and without any intention of changing or influencing control of the Company, and if such Person as
promptly as practicable divested or divests itself of Beneficial Ownership of a sufficient number
of shares of Common Stock so that such Person would no longer be an “Acquiring Person,” then such
Person shall not be deemed to be or to have become an “Acquiring Person” for any purposes of this
Agreement.

     “Adjustment Fraction” shall have the meaning set forth in Section 11(p)
hereof.

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

     “Affiliate” shall have the meaning ascribed to such term in Rule 12b-2 of the General
Rules and Regulations under the Exchange Act, as in effect on the date of this Agreement.

     “Associate” shall mean, with reference to any Person, (i) any corporation, firm,
partnership, association, unincorporated organization or other entity (other than the Company or a
Subsidiary of the Company) of which such Person is a director, officer or general partner (or
director, officer or general partner of a general partner) or is, directly or indirectly, the
Beneficial Owner of 10% or more of any class of equity securities, (ii) any trust or other estate
in which such Person has a substantial beneficial interest or as to which such Person serves as
trustee or in a similar fiduciary capacity and (iii) any relative or spouse of such Person, or any
relative of such spouse, who has the same home as such Person.

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

     (i) that such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, is the “beneficial owner” of (as determined pursuant to Rule 13d-3 of the
General Rules and Regulations under the Exchange Act as in effect on the date of this
Agreement) or otherwise has the right to vote or dispose of, including pursuant to any
agreement, arrangement or understanding (whether or not in writing); provided,
however, that a Person shall not be deemed the “Beneficial Owner” of, or to
“beneficially own,” any security under this subparagraph (i) as a result of an agreement,
arrangement or understanding to vote such security if such agreement, arrangement or
understanding: (A) arises solely from a revocable proxy or consent given in response to a
proxy or consent solicitation that is not exempted by Rule 14a-2(b)(2) of the General Rules
and Regulations under the Exchange Act as in effect on the date of this Agreement and that
is made pursuant to, and in accordance with, the applicable provisions of the General Rules
and Regulations under the Exchange Act and (B) is not then reportable by such Person on
Schedule 13D or 13G under the Exchange Act (or any comparable or successor report);

     (ii) that such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has the right or obligation to acquire (whether such right or obligation is
exercisable or effective immediately or only after the passage of time or the occurrence of
an event) pursuant to any agreement, arrangement or understanding (whether or not in
writing) or upon the exercise of conversion rights, exchange rights, other rights, warrants

2

 

or options, or otherwise; provided, however, that a Person shall not be
deemed the “Beneficial Owner” of, or to “beneficially own,” (A) securities tendered pursuant
to a tender or exchange offer made by such Person or any of such Person’s Affiliates or
Associates until such tendered securities are accepted for purchase or exchange, (B)
securities issuable upon exercise of Rights at any time prior to the occurrence of a
Triggering Event, or (C) securities issuable upon exercise of Rights from and after the
occurrence of a Triggering Event which 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(a) or Section 22 hereof (the “Original Rights”) or pursuant to
Section 11(i) or (p) hereof in connection with an adjustment made with
respect to any Original Rights; or

     (iii) that are beneficially owned, directly or indirectly, by (A) 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, disposing (except pursuant to a tender of
securities pursuant to a tender or exchange offer prior to such tendered securities being
accepted for purchase or exchange as described in the proviso to subparagraph (ii) of this
definition) or voting (except pursuant to a revocable proxy or consent as described in the
proviso to subparagraph (i) of this definition) of any voting securities of the Company or
(B) any group (as that term is used in Rule 13d-5(b) of the General Rules and Regulations
under the Exchange Act) of which such Person is a member;

provided, however, that nothing in this definition 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 (including, without limitation, securities acquired pursuant to stabilizing
transactions to facilitate a public offering in accordance with Regulation M promulgated under the
Exchange Act, or to cover overallotments created in connection with a public offering) until the
expiration of forty days after the date of such acquisition. For purposes of this Agreement,
“voting” a security shall include voting, granting a proxy, acting by consent, making a request or
demand relating to corporate action (including, without limitation, calling a stockholder meeting)
or otherwise giving an authorization (within the meaning of Section 14(a) of the Exchange Act as in
effect on the date of this Agreement) in respect of such security.

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

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

     “Closing Price” of a security for any day shall mean the last sales price, regular
way, on such day or, in case no such sale takes place on such day, the average of the closing bid
and asked prices, regular way, on such day, in either case as reported in the principal transaction
reporting system with respect to securities listed or admitted to trading on the New York Stock
Exchange, or, if such security is not listed or admitted to trading on the New York Stock

3

 

Exchange, on the principal national securities exchange on which such security is listed or
admitted to trading, or, if such security is not listed or admitted to trading on any national
securities exchange but sales price information is reported for such security, as reported by
NASDAQ or such other self-regulatory organization or registered securities information processor
(as such terms are used under the Exchange Act) that then reports information concerning such
security, or, if sales price information is not so reported, the average of the high bid and low
asked prices in the over-the-counter market on such day, as reported by NASDAQ or such other
entity, or, if on such day such security is not quoted by any such entity, the average of the
closing bid and asked prices as furnished by a professional market maker making a market in such
security selected by the Board of Directors of the Company, or, if on such day no market maker is
making a market in such security, the fair value of such security on such day as determined in good
faith by the Board of Directors of the Company.

     “Common Stock” shall mean the common stock, par value $0.01 per share, of the Company,
except that “Common Stock” when used with reference to equity interests issued by any Person other
than the Company shall mean the capital stock of such Person with the greatest voting power, or the
equity securities or other equity interest having power to control or direct the management, of
such Person.

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

     “Company” shall mean the Person named as the “Company” in the preamble of this
Agreement until a successor Person shall have become such or until a Principal Party shall assume,
and thereafter be liable for, all obligations and duties of the Company hereunder, pursuant to the
applicable provisions of this Agreement, and thereafter “Company” shall mean such successor Person
or Principal Party.

     “Current Market Price” shall have the meaning set forth in Section 11(d)
hereof.

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

     “Distribution Date” shall mean the earlier of (i) the close of business on the tenth
day (or, if such Stock Acquisition Date results from the consummation of a Permitted Offer, such
later date as may be determined by the Company’s Board of Directors as set forth below before the
Distribution Date occurs) after the Stock Acquisition Date or (ii) the close of business on the
tenth Business Day (or such later date as may be determined by the Company’s Board of Directors as
set forth below before the Distribution Date occurs) after the date that a tender offer or exchange
offer by any Person (other than any Exempt Person) is first published or sent or given within the
meaning of Rule 14d-2(a) of the General Rules and Regulations under the Exchange Act as then in
effect, if upon consummation thereof, such Person would be an Acquiring Person, other than a tender
or exchange offer that is determined before the Distribution Date occurs to be a Permitted Offer.
The Board of Directors of the Company may, to the extent set forth in the preceding sentence, defer
the date set forth in clause (i) or (ii) of the preceding sentence to a specified later date or to
an unspecified later date to be determined by a subsequent action or event (but in no event to a
date later than the close of business on the tenth day after the first occurrence of a Triggering
Event).

4

 

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

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

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

     “Exempt Person” shall mean the Company, any Subsidiary of the Company, any employee
benefit plan of the Company or of any Subsidiary of the Company, and any Person organized,
appointed or established by the Company 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
any Subsidiary of the Company.

     “Expiration Date” shall mean the earliest to occur of (i) the Final Expiration Date,
(ii) the time at which the Rights are redeemed as provided in Section 23 hereof, (iii) the
time at which the Rights expire pursuant to Section 13(d) hereof, and (iv) the time at
which all Rights then outstanding and exercisable are exchanged pursuant to Section 24
hereof.

     “Final Expiration Date” shall mean the close of business on November 14, 2018.

     “Flip-In Event” shall mean an event described in Section 11(a)(ii) hereof.

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

     “Flip-Over Event” shall mean any event described in clause (x), (y) or (z) of
Section 13(a) hereof, but excluding any transaction described in Section 13(d)
hereof that causes the Rights to expire.

     “Fractional Share” with respect to the Preferred Stock shall mean one one-thousandth
of a share of Preferred Stock.

     “NASDAQ” shall mean the NASDAQ Stock Market.

     “Original Rights” shall have the meaning set forth in the definition of “Beneficial
Owner.”

     “Permitted Offer” shall mean a tender offer or an exchange offer for all outstanding
shares of Common Stock at a price and on terms determined, prior to the time the Person making the
offer or any Affiliate or Associate thereof is an Acquiring Person, by at least a majority of the
members of the Board of Directors who are not officers or employees of the Company and who are not,
and are not representatives, nominees, Affiliates or Associates of, an Acquiring Person or the
Person making the offer, after receiving advice from one or more investment banking firms, to be
(a) at a price and on terms that are fair to stockholders and not inadequate (taking into account
all factors that such members of the Board deem relevant including, without limitation, prices that
could reasonably be achieved if the Company or its assets were sold on an orderly basis designed to
realize maximum value) and (b) otherwise in the best interests of the Company and its stockholders.

5

 

     “Person” shall mean any individual, firm, corporation, partnership, limited liability
company, association, trust, unincorporated organization or other entity.

     “Preferred Stock” shall mean Series A Junior Participating Preferred Stock, par value
$0.01 per share, of the Company having the rights, preferences and limitations set forth in the
Form of Certificate of Designation attached to this Agreement as Exhibit A.

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

     “Purchase Price” shall have the meaning set forth in Section 4(a) hereof.

     “Record Date” shall have the meaning set forth in the recitals clause at the beginning
of this Agreement.

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

     “Rights” shall have the meaning set forth in the recitals clause at the beginning of
this Agreement.

     “Rights Agent” shall mean the Person named as the “Rights Agent” in the preamble of
this Agreement until a successor Rights Agent shall have become such pursuant to the applicable
provisions hereof, and thereafter “Rights Agent” shall mean such successor Rights Agent. If at any
time there is more than one Person appointed by the Company as Rights Agent pursuant to the
applicable provisions of this Agreement, “Rights Agent” shall mean and include each such Person.

     “Rights Certificates” shall mean the certificates evidencing the Rights.

     “Security” shall have the meaning set forth in Section 11(d)(i) hereof.

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

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

     “Stock Acquisition Date” shall mean the first date of public announcement (which, for
purposes of this definition and Section 23, 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.

     “Subsidiary” shall mean, with reference to any Person, any corporation or other Person
of which an amount of voting securities sufficient to elect at least a majority of the directors or
other persons performing similar functions is beneficially owned, directly or indirectly, by such
Person, or otherwise controlled by such Person.

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

     “Trading Day” with respect to a security shall mean a day on which the principal
national securities exchange on which such security is listed or admitted to trading is open for
the

6

 

transaction of business, or, if such security is not listed or admitted to trading on any
national securities exchange but is quoted by NASDAQ or any other transaction reporting system, a
day on which NASDAQ or such other reporting system reports trades, or, if such security is not so
quoted, a Business Day.

     “Triggering Event” shall mean any Flip-In Event or any Flip-Over Event.

          Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent
(i) to act as agent for the Company and (ii) to take certain actions in respect of the holders of
the Rights (who, in accordance with Section 3 hereof, shall prior to the Distribution Date
also be the holders of the Common Stock) (although it is expressly agreed that the Rights Agent
shall not act as agent for such holders) 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 written 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. Issue of Rights Certificates

          (a) Until the Distribution Date, (x) the Rights will be evidenced by the certificates for
Common Stock registered in the names of the holders of the Common Stock and not by separate
certificates, and (y) the Rights will be transferable only in connection with the transfer of the
underlying shares of Common Stock (including a transfer to the Company). As soon as practicable
after the Distribution Date, the Rights Agent will send by first-class, insured, postage prepaid
mail, to each record holder of the Common Stock as of the close of business on the Distribution
Date (other than any Person referred to in the first sentence of Section 7(e) hereof), at
the address of such holder shown on the records of the Company, one or more Rights Certificates,
evidencing one Right for each share of Common Stock so held, subject to adjustment as provided
herein. In the event that an adjustment in the number of Rights per share of Common Stock has been
made pursuant to Section 11(p) hereof, at the time of distribution of the Rights
Certificates, the Company shall make the necessary and appropriate rounding adjustments (in
accordance with Section 14(a) hereof) so that Rights Certificates representing only whole
numbers of Rights are distributed and cash is paid in lieu of any fractional Rights. As of and
after the Distribution Date, the Rights will be evidenced solely by such Rights Certificates.

          (b) One Right will be issued in respect of each share of Common Stock issued and outstanding
as of the close of business on the Record Date. Certificates issued for such shares of Common
Stock and for shares of Common Stock that are issued or shall be transferred or exchanged after the
Record Date but prior to the earlier of the Distribution Date or the Expiration Date shall also be
deemed to be certificates for Rights, and shall bear the legend referred to in paragraph (c) of
this Section 3.

          (c) Rights shall be issued in respect of all shares of Common Stock that are issued (whether
originally issued or delivered from the Company’s treasury) after the Record Date but prior to the
earlier of the Distribution Date or the Expiration Date or, in certain circumstances provided in
Section 22 hereof, after the Distribution Date. Certificates issued for

7

 

shares of Common Stock that shall so become outstanding or shall be transferred or exchanged
after the Record Date but prior to the earlier of the Distribution Date or the Expiration Date
shall also be deemed to be certificates for Rights, and shall bear the following legend:

     This certificate also evidences and entitles the holder hereof to certain Rights as set
forth in the Rights Agreement between CommVault Systems, Inc. (the “Company”) and
Registrar and Transfer Company (the “Rights Agent”), dated as of November 14, 2008
as it may from time to time be supplemented or amended (the “Rights Agreement”), the
terms of which are hereby incorporated herein by reference and a copy of which is on file at
the principal offices of the Company. Under certain circumstances, as set forth in the
Rights Agreement, such Rights may be redeemed, may be exchanged, may expire or may be
evidenced by separate certificates and will no longer be evidenced by this certificate. The
Company or the Rights Agent will mail to the holder of this certificate a copy of the Rights
Agreement, as in effect on the date of mailing, without charge promptly after receipt of a
written request therefor. UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE RIGHTS AGREEMENT,
RIGHTS BENEFICIALLY OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS, WAS OR BECOMES AN
ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS ARE DEFINED IN THE
RIGHTS AGREEMENT), AND CERTAIN TRANSFEREES THEREOF, WILL BECOME NULL AND VOID AND WILL NO
LONGER BE TRANSFERABLE.

With respect to such certificates containing the foregoing legend, until the earlier of the
Distribution Date or the Expiration Date, the Rights associated with the Common Stock represented
by such certificates shall be evidenced by such certificates alone, and registered holders of
Common Stock shall also be the registered holders of the associated Rights, and the transfer of any
of such certificates shall also constitute the transfer of the Rights associated with the Common
Stock represented by such certificates. If the Company purchases or acquires any shares of Common
Stock after the Record Date but prior to the Distribution Date, any Rights associated with such
shares of Common Stock shall be deemed canceled and retired so that the Company shall not be
entitled to exercise any Rights associated with the shares of Common Stock which are no longer
outstanding.

          Section 4. Form of Rights Certificates.

          (a) The Rights Certificates (and the forms of election to purchase and of assignment to be
printed on the reverse thereof), when, as and if issued, shall be substantially in the form set
forth in Exhibit B hereto and may have such marks of identification or designation and such
legends, summaries or endorsements printed thereon as the Company may deem appropriate and as are
not inconsistent with the provisions of this 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 any stock exchange or quotation system on which the Rights may from time to time be listed or
quoted, or to conform to usage. Subject to the provisions of Section 11 and Section
22 hereof, the Rights Certificates, whenever issued, shall be dated as of the Record Date and
on their face shall entitle the holders thereof to purchase such number of Fractional Shares of
Preferred Stock as shall be set forth therein at the price set forth therein (such exercise price
per Fractional Share (or, as set forth in this Agreement, for other securities),

8

 

the “Purchase Price”), 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.

          (b) Any Rights Certificate issued pursuant to Section 3(a) or Section 22
hereof that represents Rights beneficially owned by a Person described in the first sentence of
Section 7(e), and any Rights Certificate issued pursuant to Section 6 or
Section 11 hereof upon transfer, exchange, replacement or adjustment of any such Rights,
shall contain (to the extent feasible) the following legend, modified as applicable to apply to
such Person:

The Rights represented by this Rights Certificate are or were beneficially owned by a Person
who was or became an Acquiring Person or an Affiliate or Associate of an Acquiring Person
(as such terms are defined in the Rights Agreement). Accordingly, this Rights Certificate
and the Rights represented hereby [will] [have] become null and void in the circumstances
and with the effect specified in Section 7(e) of such Agreement.

The provisions of Section 7(e) of this Agreement shall be operative whether or not the
foregoing legend is contained on any such Rights Certificate. The Company shall give notice to the
Rights Agent promptly after it becomes aware of the existence of any Acquiring Person or any
Associate or Affiliate thereof.

          Section 5. Countersignature and Registration.

          (a) The Rights Certificates shall be executed on behalf of the Company by its Chairman of the
Board, its Chief Executive Officer, its President or any Vice President, either manually or by
facsimile signature, and shall have affixed thereto the Company’s seal or a facsimile thereof,
which shall be attested by the Secretary or an Assistant Secretary of the Company, either manually
or by facsimile signature. The Rights Certificates shall be countersigned by the Rights Agent,
either manually or by facsimile signature, and shall not be valid for any purpose unless so
countersigned. In case any officer of the Company who shall have signed any of the Rights
Certificates shall cease to be such officer of the Company before countersignature by the Rights
Agent and issuance and delivery by the Company, such Rights 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 Rights Certificates had not ceased to be such officer
of the Company; and any Rights Certificate may be signed on behalf of the Company by any person
who, at the actual date of the execution of such Rights Certificate, shall be a proper officer of
the Company to sign such Rights 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 its
principal office or offices designated as the appropriate place for surrender of Rights
Certificates upon exercise or transfer, books for registration and transfer of the Rights
Certificates issued hereunder. Such books shall show the names and addresses of the respective
holders of the Rights Certificates, the number of Rights evidenced on its face by each of the
Rights Certificates and the certificate number and the date of each of the Rights Certificates.

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

          (a) Subject to the provisions of Section 4(b), Section 7(e), Section
13(d), Section 14 and Section 24 hereof, at any time after the close of
business on the Distribution Date, and at or prior to the close of business on the Expiration Date,
any Rights Certificate or Rights Certificates may be transferred, split up, combined or exchanged
for another Rights Certificate or Rights Certificates, entitling the registered holder to purchase
a like number of Fractional Shares of Preferred Stock (or, following a Triggering Event, Common
Stock, other securities, cash or other assets, as the case may be) as the Rights Certificate or
Rights Certificates surrendered then entitled such holder (or former holder in the case of a
transfer) to purchase. Any registered holder desiring to transfer, split up, combine or exchange
any Rights Certificate or Rights Certificates shall make such request in writing delivered to the
Rights Agent, and shall surrender the Rights Certificate or Rights Certificates to be transferred,
split up, combined or exchanged at the principal office or offices of the Rights Agent designated
for such purpose. Neither the Rights Agent nor the Company shall be obligated to take any action
whatsoever with respect to the transfer of any such surrendered Rights Certificate until the
registered holder shall have completed and signed the certificate contained in the form of
assignment on the reverse side of such Rights Certificate and shall have provided such additional
evidence of the identity of the Beneficial Owner (or former Beneficial Owner) thereof or of the
Affiliates or Associates thereof as the Company shall reasonably request. Thereupon the Rights
Agent shall, subject to Section 4(b), Section 7(e), Section 13(d),
Section 14 and Section 24 hereof, countersign and deliver to the Person entitled
thereto a Rights Certificate or Rights Certificates, as the case may be, as so requested. The
Company may require payment by the holder of a Rights Certificate of a sum sufficient to cover any
tax or governmental charge that may be imposed in connection with any transfer, split-up,
combination or exchange of such Rights Certificate.

          (b) Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to
them of the loss, theft, destruction or mutilation of a Rights Certificate, and, in case of loss,
theft or destruction, of indemnity or security reasonably satisfactory to them, and reimbursement
to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon
surrender to the Rights Agent and cancellation of the Rights Certificate if mutilated, the Company
will, subject to Section 4(b), Section 7(e), Section 13(d), Section
14 and Section 24, execute and deliver a new Rights Certificate of like tenor to the
Rights Agent for countersignature and delivery to the registered holder in lieu of the Rights
Certificate so lost, stolen, destroyed or mutilated.

          Section 7. Exercise of Rights; Purchase Price.

          (a) Subject to Section 7(e) hereof, the registered holder of any Rights Certificate
may exercise the Rights evidenced thereby (except as otherwise provided herein including, without
limitation, the restrictions on exercisability set forth in Section 9(c), Section
11(a)(iii) and Section 23(a) hereof) in whole or in part at any time after the
Distribution Date upon surrender of the Rights Certificate, with the form of election to purchase
and the certificate on the reverse side thereof duly completed and executed, to the Rights Agent at
the principal office or offices of the Rights Agent designated for such purpose, together with
payment of the aggregate Purchase Price with respect to the total number of Fractional Shares of
Preferred Stock

10

 

(or other securities, cash or other assets, as the case may be) as to which such surrendered
Rights are then exercisable, at or prior to the Expiration Date.

          (b) The Purchase Price for each Fractional Share of Preferred Stock pursuant to the exercise
of a Right shall initially be $80 and shall be subject to adjustment from time to time as provided
in Sections 11 and 13(a) hereof and shall be payable in accordance with paragraph
(c) below.

          (c) Upon receipt of a Rights Certificate representing exercisable Rights, with the form of
election to purchase and the certificate on the reverse side thereof duly executed, accompanied by
payment, with respect to each Right so exercised, of the Purchase Price per Fractional Share of
Preferred Stock (or other shares, securities, cash or other assets, as the case may be) to be
purchased as set forth below and an amount equal to any applicable transfer tax, the Rights Agent
shall, subject to Section 20(k) hereof, thereupon promptly (i)(A) requisition from any
transfer agent of the shares of Preferred Stock (or make available, if the Rights Agent is the
transfer agent for such shares) certificates for the total number of Fractional Shares of Preferred
Stock to be purchased, and the Company hereby irrevocably authorizes its transfer agent to comply
with all such requests, or (B) if the Company, in its sole discretion, shall have elected to
deposit the shares of Preferred Stock issuable upon exercise of the Rights hereunder with a
depositary agent, requisition from the depositary agent depositary receipts representing interests
in such number of Fractional Shares of Preferred Stock as are to be purchased (in which case
certificates for the shares of Preferred Stock represented by such receipts shall be deposited by
the transfer agent with the depositary agent) and the Company will direct the depositary agent to
comply with such request, (ii) requisition from the Company the amount of cash, if any, to be paid
in lieu of fractional shares in accordance with Section 14 hereof, (iii) 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 Rights Certificate, registered in such name or names as may be
designated by such holder and (iv) after receipt thereof, deliver such cash, if any, to or upon the
order of the registered holder of such Rights Certificate. The payment of the Purchase Price (as
such amount may be reduced pursuant to Section 11(a)(iii) hereof) may be made in cash or by
certified check, cashier’s or official bank check or bank draft payable to the order of the Company
or the Rights Agent. In the event that the Company is obligated to issue other securities
(including Common Stock) of the Company, pay cash and/or distribute other property pursuant to
Section 11(a) or Section 13(a) hereof, the Company will make all arrangements
necessary so that such other securities, cash and/or other property are available for distribution
by the Rights Agent, if and when appropriate. The Company reserves the right to require prior to
the occurrence of a Triggering Event that, upon exercise of Rights, a number of Rights be exercised
so that only whole shares of Preferred Stock would be issued.

          (d) In case the registered holder of any Rights Certificate shall exercise fewer than all the
Rights evidenced thereby, a new Rights Certificate evidencing Rights equivalent to the Rights
remaining unexercised shall be issued by the Rights Agent and delivered to, or upon the order of,
the registered holder of such Rights Certificate, registered in such name or names as may be
designated by such holder, subject to the provisions of Section 14 hereof.

          (e) Notwithstanding anything in this Agreement to the contrary, from and after the first
occurrence of a Triggering Event, any Rights beneficially owned by or transferred to (i)

11

 

an Acquiring Person or an Associate or Affiliate of an Acquiring Person other than any such
Person that became such pursuant to a Permitted Offer and the Board of Directors in good faith
determines was not involved in and did not cause or facilitate, directly or indirectly, such
Triggering Event, (ii) a direct or indirect transferee of such Rights from such Acquiring Person
(or any such Associate or Affiliate) who becomes a transferee after such Triggering Event or (iii)
a direct or indirect transferee of such Acquiring Person (or of any such Associate or Affiliate)
who becomes a transferee prior to or concurrently with such Triggering Event and receives such
Rights pursuant to either (A) a transfer (whether or not for consideration) from such Acquiring
Person (or such Affiliate or Associate) to holders of equity interests in such Acquiring Person (or
such Affiliate or Associate) or to any Person with whom such Acquiring Person (or such Affiliate or
Associate) has any continuing agreement, arrangement or understanding regarding the transferred
Rights or (B) a transfer that the Board of Directors of the Company determines is part of a plan,
arrangement or understanding that has as a primary purpose or effect the avoidance of this
Section 7(e), shall become null and void without any further action, no holder of such
Rights shall have any rights whatsoever with respect to such Rights, whether under any provision of
this Agreement or otherwise, and such Rights shall not be transferable. The Company shall use all
reasonable efforts to ensure that the provisions of this Section 7(e) and Section
4(b) hereof are complied with, but shall have no liability to any holder of Rights Certificates
or other Person with respect to any determination regarding an Acquiring Person or its Affiliates,
Associates or transferees hereunder or any failure to make any such determination.

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

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

          Section 9. Reservation and Availability of Capital 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 (and, following the occurrence of a
Triggering Event, out of its authorized and unissued shares of Common Stock

12

 

and/or other securities) or any shares of authorized and issued Preferred Stock (and,
following the occurrence of a Triggering Event, any authorized and issued shares of Common Stock
and/or other securities) held in its treasury, the number of shares of Preferred Stock (and,
following the occurrence of a Triggering Event, the number of shares of Common Stock and/or other
securities) that, as provided in this Agreement, including Section 11(a)(iii) hereof, will
be sufficient to permit the exercise in full of all outstanding Rights.

          (b) So long as any shares of Preferred Stock (and, following the occurrence of a Triggering
Event, any shares of Common Stock and/or other securities) are listed on any national securities
exchange or quoted on any trading system, the Company shall use its best efforts to cause, from and
after such time as the Rights become exercisable, all shares reserved for such issuance to be
listed on such exchange, or quoted on such system, upon official notice of issuance upon such
exercise. Following the occurrence of a Triggering Event, the Company will use its best efforts to
list (or continue the listing of) the Rights and the securities issuable and deliverable upon the
exercise of the Rights on one or more national securities exchanges or to cause the Rights and the
securities purchasable upon exercise of the Rights to be reported by NASDAQ or such other
transaction reporting system then in use.

          (c) The Company shall use its best efforts to (i) prepare and file, as soon as practicable
following the first occurrence of a Flip-In Event or, if applicable, as soon as practicable
following the earliest date after the first occurrence of a Flip-In Event on which the
consideration to be delivered by the Company upon exercise of the Rights has been determined
pursuant to this Agreement (including in accordance with Section 11(a)(iii) hereof), a
registration statement on an appropriate form under the Securities Act with respect to the
securities purchasable upon exercise of the Rights, (ii) cause such registration statement to
become effective as soon as practicable after such filing, and (iii) cause such registration
statement to remain effective (with a prospectus at all times meeting the requirements of the
Securities Act) until the earlier of (A) the date as of which the Rights are no longer exercisable
for such securities and (B) the Expiration Date. The Company will also take such action as may be
appropriate under, or to ensure compliance with, the securities or “blue sky” laws of the various
states in connection with the exercisability of the Rights. The Company may temporarily suspend,
for a period of time not to exceed 90 days after the date set forth in clause (i) of the first
sentence of this Section 9(c), the exercisability of the Rights in order to prepare and
file such registration statement and permit it to become effective. In addition, if the Company
shall determine that the Securities Act requires an effective registration statement under the
Securities Act following the Distribution Date, the Company may temporarily suspend the
exercisability of the Rights until such time as such a registration statement has been declared
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
Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction if the requisite
qualification in such jurisdiction shall not have been obtained, the exercise thereof shall not be
permitted under applicable law or any required registration statement shall not have been declared
effective.

          (d) The Company covenants and agrees that it will take all such action as may be necessary to
ensure that all Fractional Shares of Preferred Stock (and, following the occurrence of a Triggering
Event, shares of Common Stock and/or other securities) delivered upon exercise

13

 

of Rights shall, at the time of delivery of the certificates for such shares (and, following
the occurrence of a Triggering Event, shares of Common Stock and/or other securities), subject to
payment of the Purchase Price, be duly and validly authorized and issued and fully paid and
nonassessable.

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

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

          Section 11. Adjustment of Purchase Price, Number and Kind of Shares or Number of
Rights. The Purchase Price, the number and kind of shares or other securities subject to
purchase 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 (A) declare a dividend on the
outstanding shares of Preferred Stock payable in shares of Preferred Stock, (B)

14

 

subdivide the outstanding shares of Preferred Stock, (C) combine the outstanding shares
of Preferred Stock into a smaller number of shares or (D) otherwise reclassify the
outstanding 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) and Section
7(e) hereof, the Purchase Price in effect at the time of the record date for such
dividend or of the effective date of such subdivision, combination or reclassification, and
the number and kind of shares of Preferred Stock or capital stock, as the case may be,
issuable on such date, shall be proportionately adjusted so that the holder of any Right
exercised after such time shall be entitled to receive, upon payment of the Purchase Price
then in effect, the aggregate number and kind of shares of Preferred Stock or capital stock,
as the case may be, 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, he would
have owned upon such exercise and been entitled to receive by virtue of such dividend,
subdivision, combination or reclassification. If an event occurs that would require an
adjustment under both this Section 11(a)(i) and Section 11(a)(ii) hereof,
the adjustment provided for in this Section 11(a)(i) shall be in addition to, and
shall be made prior to, any adjustment required pursuant to Section 11(a)(ii)
hereof.

          (ii) Subject to Sections 23 and 24 of this Agreement, in the event any
Person shall, at any time after the Record Date, become an Acquiring Person, unless the
event causing such Person to become an Acquiring Person is (1) a Flip-Over Event or (2) an
acquisition of shares of Common Stock pursuant to a Permitted Offer (provided that this
clause (2) shall cease to apply if such Acquiring Person thereafter becomes the Beneficial
Owner of any additional shares of Common Stock other than pursuant to such Permitted Offer
or a transaction set forth in Section 13(a) or 13(d) hereof), then, (x) the
Purchase Price shall be adjusted to be the Purchase Price immediately prior to the first
occurrence of a Flip-In Event multiplied by the number of Fractional Shares of Preferred
Stock for which a Right was exercisable immediately prior to such first occurrence and (y)
each holder of a Right (except as provided below in Section 11(a)(iii) and in
Section 7(e) hereof) 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 Agreement, in lieu of Fractional Shares of Preferred Stock theretofore exercisable,
such number of shares of Common Stock of the Company as shall equal the result obtained by
dividing the Purchase Price by 50% of the Current Market Price per share of Common Stock on
the date of such first occurrence (such number of shares, the “Adjustment Shares”);
provided that the Purchase Price and the number of Adjustment Shares shall be
further adjusted as provided in this Agreement to reflect any events occurring after the
date of such first occurrence.

          (iii) In the event that the number of shares of Common Stock that are authorized by
the Company’s certificate of incorporation but not outstanding or reserved for issuance for
purposes other than upon exercise of the Rights is not sufficient to permit the exercise in
full of the Rights in accordance with the foregoing subparagraph (ii) of this Section
11(a), the Company shall, to the extent permitted by applicable law and regulation, (A)
determine the excess of (1) the value of the Adjustment Shares issuable upon the exercise of
a Right (computed using the Current Market Price used to determine the number of Adjustment
Shares) (the “Current Value”) over (2) the Purchase Price

15

 

(such excess is herein referred to as the “Spread”), and (B) with respect to
each Right, make adequate provision to substitute for the Adjustment Shares, upon the
exercise of the Rights and payment of the applicable Purchase Price, (1) cash, (2) a
reduction in the Purchase Price, (3) Common Stock or other equity securities of the Company
(including, without limitation, shares, or units of shares, of preferred stock, such as the
Preferred Stock, that the Board of Directors of the Company has determined to have the same
value as shares of Common Stock (such shares of preferred stock being referred to as the
“Common Stock Equivalents”)), (4) debt securities of the Company, (5) other assets
or (6) any combination of the foregoing, having an aggregate value equal to the Current
Value, where such aggregate value has been determined by the Board of Directors of the
Company based upon the advice of a nationally recognized investment banking firm selected by
the Board of Directors of the Company; provided, however, if the Company
shall not have made adequate provision to deliver value pursuant to clause (B) above within
30 days following the later of (x) the first occurrence of a Flip-In Event and (y) the date
on which the Company’s right of redemption pursuant to Section 23(a) expires (the
later of (x) and (y) being referred to herein as the “Flip-In Trigger Date”), then
the Company shall be obligated to deliver, 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, cash, which shares and/or cash have an aggregate value
equal to the Spread. If the Board of Directors of the Company shall determine in good faith
that it is likely that sufficient additional shares of Common Stock could be authorized for
issuance upon exercise in full of the Rights, the 30-day period set forth above may be
extended to the extent necessary, but not more than 90 days after the Flip-In Trigger Date,
in order that the Company may seek stockholder approval for the authorization of such
additional shares (such period, as it may be extended, the “Substitution Period”).
To the extent that the Company or the Board of Directors determines that some action need be
taken pursuant to the first and/or second sentences of this Section 11(a)(iii), the
Company (x) shall provide, subject to Section 7(e) hereof, that such action shall
apply uniformly to all outstanding Rights, and (y) may suspend the exercisability of the
Rights until the expiration of the Substitution Period in order to seek any authorization of
additional shares and/or to decide the appropriate form of distribution to be made pursuant
to such first sentence and to determine the value thereof. In the event of any such
suspension, the Company shall issue a public announcement stating that the exercisability of
the Rights has been temporarily suspended, as well as a public announcement at such time as
the suspension is no longer in effect. For purposes of this Section 11(a)(iii), the
value of the Common Stock shall be the Current Market Price per share of the Common Stock on
the Flip-In Trigger Date and the value of any Common Stock Equivalent shall be deemed to
have the same value as the Common Stock on such date.

          (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 to subscribe for or purchase (for a
period expiring within 45 calendar days after such record date) Preferred Stock (or shares having
substantially the same rights, privileges and preferences as the shares of Preferred Stock
(“Equivalent Preferred Stock”)) or securities convertible into Preferred Stock or
Equivalent Preferred Stock at a price per share of Preferred Stock or per share of Equivalent
Preferred Stock (or having a conversion price per share, if a security convertible into Preferred
Stock or

16

 

Equivalent Preferred Stock) less than the Current Market Price per share of Preferred Stock on
such record date, the Purchase Price to be in effect after such record date shall be determined by
multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the
numerator of which shall be the number of shares of Preferred Stock outstanding on such record
date, plus the number of shares of Preferred Stock that the aggregate offering price of the total
number of shares of Preferred Stock and/or Equivalent Preferred Stock 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 outstanding on such record date, plus the number of additional shares of Preferred
Stock and/or Equivalent Preferred Stock to be offered for subscription or purchase (or into which
the convertible securities so to be offered are initially convertible). In case such subscription
price may be paid by delivery of consideration, part or all of which may be in a form other than
cash, the value of such consideration shall be as determined in good faith by the Board of
Directors of the Company, whose determination shall be described in a statement filed with the
Rights Agent and shall be binding on the Rights Agent and the holders of the Rights. Shares of
Preferred Stock owned by or held for the account of the Company shall not be deemed outstanding for
the purpose of any such computation. Such adjustment shall be made successively whenever such a
record date is fixed, and in the event that such rights, options or warrants are not so issued, the
Purchase Price shall be adjusted to be the Purchase Price that would then be in effect if such
record date had not been fixed.

          (c) In case the Company shall fix a record date for a distribution to all holders of
Preferred Stock (including any such distribution made in connection with a consolidation or merger
in which the Company is the continuing or surviving corporation) of evidences of indebtedness, cash
(other than a regular quarterly cash dividend out of the earnings or retained earnings of the
Company), assets (other than a dividend payable in Preferred Stock, but including any dividend
payable in stock other than Preferred Stock) or subscription rights or warrants (excluding those
referred to in Section 11(b) hereof), the Purchase Price to be in effect after such record
date shall be determined by multiplying the Purchase Price in effect immediately prior to such
record date by a fraction, the numerator of which shall be the Current Market Price per share of
Preferred Stock on such record date, less the fair market value (as determined in good faith by the
Board of Directors 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 the cash, assets or
evidences of indebtedness so to be distributed or of such subscription rights or warrants
applicable to a share of Preferred Stock and the denominator of which shall be such Current Market
Price per share of Preferred Stock. Such adjustments shall be made successively whenever such a
record date is fixed, and in the event that such distribution is not so made, the Purchase Price
shall be adjusted to be the Purchase Price that would have been in effect if such record date had
not been fixed.

     (d) (i) For the purpose of any computation hereunder, other than computations made
pursuant to Section 11(a)(iii) hereof, the “Current Market Price” per share
of any security (a “Security” for the purpose of this Section 11(d)(i)) of a Person
on any date shall be deemed to be the average of the daily Closing Prices per share of such
Security for the 30 consecutive Trading Days immediately prior to but not including such
date, and for purposes of computations made pursuant to Section 11(a)(iii) hereof,
the “Current Market Price” per share of a Security on any date shall be deemed to be
the average of

17

 

the daily Closing Prices per share of such Security for the 10 consecutive Trading Days
immediately following but not including such date; provided, however, that
in the event that the Current Market Price per share of a Security is determined during a
period following the announcement of (A) a dividend or distribution on such Security other
than a regular quarterly cash dividend or the dividend of the Rights, or (B) any
subdivision, combination or reclassification of such Security, and the ex-dividend date for
such dividend or distribution, or the record date for such subdivision, combination or
reclassification, shall not have occurred prior to the commencement of the requisite 30
Trading Day or 10 Trading Day period, as set forth above, then, and in each such case, the
Current Market Price shall be properly adjusted to take into account ex-dividend trading.
If a Security is not publicly held or not so listed or traded, “Current Market
Price” per share shall mean the fair value per share as determined in good faith by the
Board of Directors of the Company, whose determination shall be described in a statement
filed with the Rights Agent and shall be conclusive for all purposes.

          (ii) For all purposes of this Agreement, the Current Market Price of a Fractional
Share of Preferred Stock shall be equal to the Current Market Price of one share of
Preferred Stock divided by 1000.

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

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

          (g) All Rights originally issued by the Company subsequent to any adjustment made to the
Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the
number of Fractional Shares of Preferred Stock purchasable from time to time hereunder upon
exercise of the Rights, all subject to further adjustment as provided herein.

          (h) Unless the Company shall have exercised its election as provided in Section
11(i), upon each adjustment of the Purchase Price as a result of the calculations made in
Sections 11(b) and (c), each Right outstanding immediately prior to the making of
such

18

 

adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of
Fractional Shares of Preferred Stock (calculated to the nearest one-thousandth of a Fractional
Share) obtained by (i) multiplying (x) the number of Fractional Shares of Preferred Stock covered
by a Right immediately prior to this adjustment by (y) the Purchase Price in effect immediately
prior to such adjustment of the Purchase Price, and (ii) dividing the product so obtained by the
Purchase Price in effect immediately after such adjustment of the Purchase Price.

          (i) The Company may elect, on or after the date of any adjustment of the Purchase Price, to
adjust the number of Rights in lieu of any adjustment in the number of Fractional Shares of
Preferred Stock purchasable upon the exercise of a Right. Each of the Rights outstanding after the
adjustment in the number of Rights shall be exercisable for the number of Fractional Shares of
Preferred Stock for which a Right was exercisable immediately prior to such adjustment. Each Right
held of record prior to such adjustment of the number of Rights shall become that number of Rights
(calculated to the nearest one-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 Rights Certificates have
been issued, shall be at least 10 days later than the date of the public announcement. If Rights
Certificates have been issued, upon each adjustment of the number of Rights pursuant to this
Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to
holders of record of Rights Certificates on such record date Rights 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 Rights Certificates held by such
holders prior to the date of adjustment, and upon surrender thereof, if required by the Company,
new Rights Certificates evidencing all the Rights to which such holders shall be entitled after
such adjustment. Rights Certificates so to be distributed shall be issued, executed and
countersigned in the manner provided for herein (and may bear, at the option of the Company, the
adjusted Purchase Price) and shall be registered in the names of the holders of record of Rights
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
Fractional Shares of Preferred Stock issuable upon the exercise of the Rights, the Rights
Certificates theretofore and thereafter issued may continue to express the Purchase Price per
Fractional Share and the number of Fractional Shares that were expressed in the initial Rights
Certificates issued hereunder.

          (k) Before taking any action that would cause an adjustment reducing the Purchase Price below
the then par value, if any, or the stated capital of the number of Fractional Shares of Preferred
Stock or other securities issuable upon exercise of a Right, the Company shall take any corporate
action that may, in the opinion of its counsel, be necessary in order that the Company may validly
and legally issue fully paid and nonassessable such number of Fractional Shares of Preferred Stock
or such other securities at such adjusted Purchase Price.

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          (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 issuance to the holder of any Right exercised after
such record date the number of Fractional Shares of Preferred Stock and other capital stock or
securities of the Company, if any, issuable upon such exercise over and above the number of
Fractional Shares of Preferred Stock and other capital stock or securities of the Company, if any,
issuable upon such exercise on the basis of the Purchase Price in effect prior to such adjustment;
provided, however, that the Company shall deliver to such holder a due bill or
other appropriate instrument evidencing such holder’s right to receive such additional shares
(fractional or otherwise) or securities upon the occurrence of the event requiring such adjustment.

          (m) Anything in this Section 11 to the contrary notwithstanding, the Company shall be
entitled to make such reductions in the Purchase Price, in addition to those adjustments expressly
required by this Section 11, as and to the extent that the Board of Directors of the
Company in its sole discretion shall determine to be advisable in order that any (i) consolidation
or subdivision of the Preferred Stock, (ii) issuance wholly for cash of any shares of Preferred
Stock at less than the current market price, (iii) issuance wholly for cash of shares of Preferred
Stock or securities that by their terms are convertible into or exchangeable for shares of
Preferred Stock, (iv) stock dividends or (v) issuance of rights, options or warrants referred to in
this Section 11 hereafter made by the Company to holders of its Preferred Stock shall not
be taxable to such stockholders.

          (n) The Company covenants and agrees that it shall not, at any time that there is an
Acquiring Person, (i) consolidate with any other Person, (ii) merge with or into any other Person,
or (iii) sell, lease or transfer (or permit one or more Subsidiaries to sell, lease or transfer),
in one transaction or a series of related transactions, assets or earning power aggregating more
than 50% of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to
any other Person or Persons, if (x) at the time of or immediately after such consolidation, merger,
sale, lease or transfer there are any rights, warrants or other instruments or securities of the
Company or any other Person outstanding or agreements, arrangements or understandings in effect
that 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, lease or transfer, the stockholders or other equity owners of the Person who constitutes, or
would constitute, the “Principal Party” for purposes of Section 13(a) hereof shall
have received a distribution of Rights previously owned by such Person or any of its Affiliates or
Associates, or (z) the identity, form or nature of organization of the Principal Party (including,
without limitation, the selection of the Person that will be the Principal Party as a result of the
Company’s entering into one or more consolidations, mergers, sales, leases, transfers or
transactions with more than one party) would preclude or limit the exercise of Rights or otherwise
diminish substantially or eliminate the benefits intended to be afforded by the Rights.

          (o) The Company covenants and agrees that, after the Distribution Date, it will not, except
as permitted by Section 23, Section 24 or Section 27 hereof, take (or
permit any Subsidiary to take) any action if the purpose of such action is to, or if at the time
such action is taken it is reasonably foreseeable that such action will, diminish substantially or
eliminate the benefits intended to be afforded by the Rights.

20

 

          (p) Notwithstanding Section 3(c) hereof or any other provision of this Agreement to
the contrary, in the event that the Company shall at any time after the Record Date and prior to
the Distribution Date (i) declare a dividend on the outstanding shares of Common Stock payable in
shares of Common Stock, (ii) subdivide the outstanding shares of Common Stock, (iii) combine the
outstanding shares of Common Stock into a smaller number of shares or (iv) otherwise reclassify the
outstanding shares of Common Stock (including any such reclassification in connection with a
consolidation or merger in which the Company is the continuing or surviving corporation), the
number of Rights associated with each share of Common Stock then outstanding, or issued or
delivered thereafter with Rights, 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 “Adjustment 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. In lieu of such adjustment
in the number of Rights associated with one share of Common Stock, the Company may elect to adjust
the number of Fractional Shares of Preferred Stock purchasable upon the exercise of one Right and
the Purchase Price. If the Company makes such election, the number of Rights associated with one
share of Common Stock shall remain unchanged, and the number of Fractional Shares of Preferred
Stock purchasable upon exercise of one Right and the Purchase Price shall be proportionately
adjusted so that (i) the number of Fractional Shares of Preferred Stock purchasable upon exercise
of a Right following such adjustment shall equal the product of the number of Fractional Shares of
Preferred Stock purchasable upon exercise of a Right immediately prior to such adjustment
multiplied by the Adjustment Fraction and (ii) the Purchase Price following such adjustment shall
equal the product of the Purchase Price immediately prior to such adjustment multiplied by the
Adjustment Fraction.

          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 (a) promptly prepare a certificate setting forth such adjustment and a brief statement of the
facts accounting for such adjustment, (b) promptly file with the Rights Agent, and with each
transfer agent for the Common Stock and the Preferred Stock, a copy of such certificate and (c)
mail a brief summary thereof to each registered holder of a Rights Certificate (or, if prior to the
Distribution Date, to each registered holder of a certificate representing shares of Common Stock)
in accordance with Section 26 hereof. The Rights Agent shall be fully protected in relying
on any such certificate and on any adjustment therein contained.

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

          (a) In the event that, from and after the time an Acquiring Person has become such, directly
or indirectly, (x) the Company shall consolidate with, or merge with and into, any other Person,
and the Company shall not be the continuing or surviving corporation of such consolidation or
merger, (y) any Person shall consolidate with, or merge with or into, the Company, and the Company
shall be the continuing or surviving corporation of such consolidation or merger, and, in
connection with such consolidation or merger, all or part of the

21

 

outstanding shares of Common Stock shall be changed into or exchanged for stock or other
securities of the Company or any other Person or cash or any other property, or (z) the Company
shall sell, lease or otherwise transfer (or one or more of its Subsidiaries shall sell, lease or
otherwise transfer), in one transaction or a series of related transactions, assets or earning
power aggregating more than 50% of the assets or earning power of the Company and its Subsidiaries
(taken as a whole) to any Person or Persons (other than the Company or any wholly owned Subsidiary
of the Company or any combination thereof in one or more transactions each of which complies (and
all of which together comply) with Section 11(o) hereof), then, and in each such case
(except as may be contemplated by Section 13(d) hereof), proper provision shall be made so
that: (i) the Purchase Price shall be adjusted to be the Purchase Price immediately prior to the
first occurrence of a Triggering Event multiplied by the number of Fractional Shares of Preferred
Stock for which a Right was exercisable immediately prior to such first occurrence; (ii) on and
after the Distribution Date, each holder of a Right, except as provided in Section 7(e)
hereof, shall thereafter have the right to receive, upon the exercise thereof at the then current
Purchase Price in accordance with the terms of this Agreement, in lieu of Fractional Shares of
Preferred Stock of the Company, such number of validly authorized and issued, fully paid,
nonassessable and freely tradeable shares of Common Stock of the Principal Party (as such term is
hereinafter defined), not subject to any liens, encumbrances, rights of first refusal or other
adverse claims, as shall be equal to the result obtained by dividing the Purchase Price by 50% of
the Current Market Price per share of the Common Stock of such Principal Party on the date of
consummation of such Flip-Over Event; 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 this Agreement to reflect any events occurring after the date of
such first occurrence of a Triggering Event or after the date of such Flip-Over Event, as
applicable; (iii) such Principal Party shall thereafter be liable for, and shall assume, by virtue
of such Flip-Over Event, all the obligations and duties of the Company pursuant to this Agreement;
(iv) the term “Company” shall thereafter be deemed to refer to such Principal Party, it
being specifically intended that the provisions of Section 11 hereof shall apply only to
such Principal Party following the first occurrence of a Flip-Over Event; (v) such Principal Party
shall take such steps (including, but not limited to, the reservation of a sufficient number of
shares of its Common Stock) in connection with the consummation of any such transaction as may be
necessary to assure that the provisions hereof shall thereafter be applicable, as nearly as
reasonably may be, in relation to its shares of Common Stock thereafter deliverable upon the
exercise of the Rights; and (vi) the provisions of Section 11(a)(ii) hereof shall be of no
effect following the occurrence of any Flip-Over Event.

          (b) “Principal Party” shall mean

     (i) in the case of any transaction described in clause (x) or (y) of the first
sentence of Section 13(a), (A) the Person that is the issuer of any securities into
which shares of Common Stock of the Company are converted in such merger or consolidation,
or, if there is more than one such issuer, the issuer the Common Stock of which has the
greatest aggregate market value, or (B) if no securities are so issued, (x) the Person that
survives such consolidation or is the other party to the merger and survives such merger,
or, if there is more than one such Person, the Person the Common Stock of which has the
greatest aggregate market value or (y) if the Person that is the other party to the merger

22

 

does not survive the merger, the Person that does survive the merger (including the
Company if it survives); and

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

provided, however, that in any such case, if the Common Stock of such Person is not
at such time and has not been continuously over the preceding twelve-month period registered under
Section 12 of the Exchange Act, and if (1) such Person is a direct or indirect Subsidiary of
another Person the Common Stock of which is and has been so registered, “Principal Party”
shall refer to such other Person; (2) such Person is a Subsidiary, directly or indirectly, of more
than one Person, the Common Stocks of all of which are and have been so registered, “Principal
Party” shall refer to whichever of such Persons is the issuer of the Common Stock having the
greatest aggregate market value; and (3) 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 (1) and (2) above shall apply to each of the chains of ownership
having an interest in such joint venture as if such party were a “Subsidiary” of both or all of
such joint venturers and the Principal Parties in each such chain shall bear the obligations set
forth in this Section 13 in the same ratio as their direct or indirect interests in such
Person bear to the total of such interests.

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

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

     (ii) use its best efforts to qualify or register the Rights and the securities
purchasable upon exercise of the Rights under the “blue sky” laws of such jurisdictions as
may be necessary or appropriate;

23

 

     (iii) use its best efforts, if the Common Stock of the Principal Party is or shall
become listed on a national securities exchange, to list (or continue the listing of) the
Rights and the securities purchasable upon exercise of the Rights on such securities
exchange and, if the Common Stock of the Principal Party shall not be listed on a national
securities exchange, to cause the Rights and the securities purchasable upon exercise of the
Rights to be reported by NASDAQ or such other transaction reporting system then in use; and

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

The provisions of this Section 13 shall similarly apply to successive mergers or
consolidations or sales or other transfers. In the event that a Flip-Over Event shall occur at any
time after the occurrence of a Flip-In Event, the Rights that have not theretofore been exercised
shall thereafter become exercisable in the manner described in Section 13(a).

          (d) Notwithstanding anything in this Agreement to the contrary, Section 13 shall not
be applicable to a transaction described in clauses (x) and (y) of Section 13(a) if (i)
such transaction is consummated with a Person or Persons who acquired shares of Common Stock
pursuant to a Permitted Offer (or a wholly owned subsidiary of any such Person or Persons), (ii)
the price per share of Common Stock offered in such transaction is not less than the price per
share of Common Stock paid to all holders of Common Stock whose shares were purchased pursuant to
such Permitted Offer, and (iii) the form of consideration being offered to the remaining holders of
shares of Common Stock pursuant to such transaction is the same as the form of consideration paid
pursuant to such Permitted Offer. Upon consummation of any such transaction contemplated by this
Section 13(d), all Rights hereunder shall expire.

          Section 14. Fractional Rights and Fractional Shares.

          (a) The Company shall not be required to issue fractions of Rights, except prior to the
Distribution Date as provided in Section 11(p) hereof, or to distribute Rights Certificates
or scrip evidencing fractional Rights. In lieu of such fractional Rights, there shall be paid to
the registered holders of the Rights Certificates with regard to which such fractional Rights would
otherwise be issuable, an amount in cash equal to the same fraction of the Closing Price of one
Right for the Trading Day immediately prior to the date on which such fractional Rights would have
been otherwise issuable.

          (b) The Company shall not be required to issue fractions of shares of Preferred Stock (other
than, except as provided in Section 7(c) hereof, fractions that are integral multiples of a
Fractional Share of Preferred Stock) upon exercise of the Rights or to distribute certificates or
scrip evidencing fractional shares of Preferred Stock (other than, except as provided in
Section 7(c) hereof, fractions that are integral multiples of a Fractional Share of
Preferred Stock). Interests in fractions of shares of Preferred Stock in integral multiples of a
Fractional Share of Preferred Stock may, at the election of the Company in its sole discretion, 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

24

 

receipts shall have all the rights, privileges and preferences to which they are entitled as
beneficial owners of the shares of Preferred Stock represented by such depositary receipts. In
lieu of fractional shares of Preferred Stock that are not integral multiples of a Fractional Share
of Preferred Stock, the Company may pay to the registered holders of Rights Certificates at the
time such Rights are exercised as herein provided an amount in cash equal to the same fraction of
one one-thousandth of the Closing Price of a share of Preferred Stock for the Trading Day
immediately prior to the date of such exercise.

          (c) Following the occurrence of a Triggering Event, the Company shall not be required to
issue fractions of shares of Common Stock upon exercise of the Rights or to distribute certificates
or scrip evidencing fractional shares of Common Stock. In lieu of fractional shares of Common
Stock, the Company may pay to the registered holders of Rights Certificates at the time such Rights
are exercised as herein provided an amount in cash equal to the same fraction of the Closing Price
of one share of Common Stock for the Trading Day immediately prior to the date of such exercise.

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

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

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

          (a) prior to the Distribution Date, the Rights will not be evidenced by Rights Certificates
and will be transferable only in connection with the transfer of Common Stock;

          (b) after the Distribution Date, the Rights Certificates will be transferable only on the
registry books of the Rights Agent if surrendered at the principal office or offices of the

25

 

Rights Agent designated for such purposes, duly endorsed or accompanied by a proper instrument
of transfer and with the form of assignment set forth on the reverse side thereof and the
certificate contained therein duly completed and fully executed;

          (c) subject to Section 6(a) and Section 7(f) hereof, the Company and the
Rights Agent may deem and treat the Person in whose name a Rights Certificate (or, prior to the
Distribution Date, the associated Common Stock certificate) is registered as the absolute owner
thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing
on the Rights Certificates or the associated 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 shall be affected by any notice to the contrary; and

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

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

          Section 18. Concerning the Rights Agent.

          (a) The Company agrees to pay to the Rights Agent 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 disbursements and other reasonable disbursements incurred in the
administration and execution of this Agreement and the exercise and performance of its duties
hereunder. The Company also agrees to indemnify the Rights Agent for, and to hold it harmless
against, any loss, liability or expense, incurred without gross negligence, bad faith or willful
misconduct on the part of the Rights Agent, for anything done or omitted by the Rights Agent in
connection with the acceptance and administration of this Agreement, including the costs and
expenses of defending against any claim of liability in the premises.

26

 

          (b) The Rights Agent shall be protected and shall incur no liability for or in respect of any
action taken, suffered or omitted by it in connection with its administration of this Agreement in
reliance upon any Rights Certificate or certificate for the Preferred Stock or the 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 believed by it, after proper inquiry or examination, to be genuine and to be signed,
executed and, where necessary, guaranteed, verified or acknowledged, by the proper Person or
Persons.

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

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

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

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

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

          (b) Whenever in the performance of its duties under this Agreement the Rights Agent shall
deem it necessary or desirable that any fact or matter (including, without limitation,

27

 

the identity of any Acquiring Person and the determination of “Current Market Price”) be
proved or established by the Company prior to taking or suffering any action hereunder, such fact
or matter (unless other evidence in respect thereof be herein specifically prescribed) may be
deemed to be conclusively proved and established by a certificate signed by the Chairman of the
Board, the Chief Executive Officer, the President, any Vice President, the Treasurer, any Assistant
Treasurer, the Secretary or any Assistant Secretary of the Company and delivered to the Rights
Agent; and such certificate shall be full authorization to the Rights Agent for any action taken or
suffered in good faith by it under the provisions of this Agreement in reliance upon such
certificate.

          (c) The Rights Agent shall be liable hereunder only for its own gross negligence, bad faith
or willful misconduct. In no event shall the Rights Agent be liable for special, indirect or
consequential loss or damage of any kind whatsoever (including but not limited to lost profits),
even if the Rights Agent has been advised of the likelihood of such loss or damage and regardless
of the form of action.

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

          (e) The Rights Agent shall not be under any responsibility in respect of the validity of this
Agreement or the execution and delivery hereof (except the due execution hereof by the Rights
Agent) or in respect of the validity or execution of any Rights Certificate (except its
countersignature thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Rights Certificate; nor shall it be
responsible for any adjustment required under the provisions of Section 11 or Section
13 hereof or responsible for the manner, method or amount of any such adjustment or the
ascertaining of the existence of facts that would require any such adjustment (except with respect
to the exercise of Rights evidenced by Rights Certificates after receipt of actual knowledge of any
such adjustment); nor shall it by any act hereunder be deemed to make any representation or
warranty as to the authorization or reservation of any shares of Preferred Stock, Common Stock or
other securities to be issued pursuant to this Agreement or any Rights Certificate or as to whether
any shares of Preferred Stock, Common Stock or other securities will, when so issued, be validly
authorized and issued, fully paid and nonassessable.

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

          (g) The Rights Agent is hereby authorized and directed to accept instructions with respect to
the performance of its duties hereunder from the Chairman of the Board, the Chief Executive
Officer, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer
or any Assistant Treasurer of the Company, and to apply to such officers for advice or instructions
in connection with its duties, and it shall not be liable for any action

28

 

taken or suffered to be taken by it in good faith in accordance with instructions of any such
officer.

          (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 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, omission, default, neglect or
misconduct of any such attorneys or agents or for any loss to the Company resulting from any such
act, omission, default, neglect or misconduct; provided, however, that reasonable
care was exercised in the selection and continued employment thereof.

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

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

          Section 21. Change of Rights Agent. The Rights Agent or any successor Rights Agent
may resign and be discharged from its duties under this Agreement upon 30 days’ notice in writing
mailed to the Company, and to each transfer agent with respect to the Common Stock and the
Preferred Stock by registered or certified mail, and to the registered holders, if any, of the
Rights Certificates by first-class mail. The Company may remove the Rights Agent or any successor
Rights Agent (with or without cause) upon 30 days’ notice in writing, mailed to the Rights Agent or
successor Rights Agent, as the case may be, and to each transfer agent of the Common Stock and the
Preferred Stock, by registered or certified mail, and to the registered holders of the Rights
Certificates, if any, by first-class mail. If the Rights Agent shall resign or be removed or shall
otherwise become incapable of acting, the Company shall appoint a successor to the Rights Agent.
Notwithstanding the foregoing provisions of this Section 21, in no event shall the
resignation or removal of a Rights Agent be effective until a successor Rights Agent shall have
been appointed and have accepted such appointment. If the Company shall fail to make such
appointment within a period of 30 days after giving notice of such removal or after it has been
notified in writing of such resignation or incapacity by the resigning or incapacitated Rights
Agent or by the registered holder of a Rights Certificate (who shall, with such notice, submit his
Rights Certificate for inspection by the Company), then the Rights Agent or the registered holder
of any Rights Certificate may apply to any court of competent jurisdiction for

29

 

the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the
Company or by such a court, shall be (a) an entity organized and doing business under the laws of
the United States or any state thereof, in good standing, which is authorized under such laws to
exercise corporate trust or stock transfer powers and is subject to supervision or examination by
federal or state authority and which has at the time of its appointment as Rights Agent a combined
capital and surplus of at least $10,000,000 or (b) an affiliate of a corporation or trust company
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 with respect to the Common Stock and the
Preferred Stock, and mail a notice thereof in writing to the registered holders of the Rights
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 Rights Certificates. Notwithstanding any of the
provisions of this Agreement or of the Rights to the contrary, the Company may, at its option,
issue new Rights Certificates evidencing Rights in such form as may be approved by its Board of
Directors to reflect any adjustment or change in the Purchase Price and the number or kind or class
of shares or other securities or property purchasable under the Rights Certificates made in
accordance with the provisions of this Agreement. In addition, in connection with the issuance or
sale of shares of Common Stock following the Distribution Date and prior to the Expiration Date,
the Company (a) shall, with respect to shares of Common Stock so issued or sold pursuant to the
exercise of stock options or under any employee plan or arrangement granted or awarded on or prior
to the Distribution Date, or upon the exercise, conversion or exchange of securities issued by the
Company on or prior to the Distribution Date, and (b) may, in any other case, if deemed necessary
or appropriate by the Board of Directors of the Company, issue Rights Certificates representing the
appropriate number of Rights in connection with such issuance or sale; provided,
however, that (i) no such Rights Certificate shall be issued if, and to the extent that,
the Company shall be advised by counsel that such issuance would create a significant risk of
material adverse tax consequences to the Company or the Person to whom such Rights Certificate
would be issued, and (ii) no such Rights Certificate shall be issued if, and to the extent that,
appropriate adjustment shall otherwise have been made in lieu of the issuance thereof.

          Section 23. Redemption and Termination.

          (a) The Board of Directors of the Company may, at its option, at any time prior to the
earlier of (i) the close of business on the tenth day following the first date of public
announcement of the occurrence of a Flip-In Event and (ii) the Expiration Date, cause the Company
to redeem all but not less than all the then outstanding Rights at a redemption price of $0.001 per
Right, as such amount may be appropriately adjusted, if necessary, to reflect any stock split,
stock dividend or similar transaction (such redemption price being hereinafter

30

 

referred to as the “Redemption Price”); provided, however, that the
Rights may not be redeemed following any merger to which the Company is a party that occurs when
there is an Acquiring Person if such redemption was not approved prior to such merger by each of
(i) the Board of Directors of the Company and (ii) the stockholders of the Company acting at a
stockholders’ meeting. Notwithstanding anything contained in this Agreement to the contrary, the
Rights shall not be exercisable after the first occurrence of a Flip-In Event until such time as
the Company’s right of redemption hereunder has expired. 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) or any other form of consideration deemed appropriate by the Board
of Directors.

          (b) Immediately upon the effectiveness of the action of the Board of Directors of the Company
ordering the redemption of the Rights (the effectiveness of which action may be conditioned on the
occurrence of one or more events or on the existence of one or more facts or may be effective at
some future time), evidence of which shall be filed with the Rights Agent and without any further
action and without any notice, the right to exercise the Rights will terminate and the only right
thereafter of the holders of Rights shall be to receive the Redemption Price for each Right so
held. Promptly after the effectiveness of the action of the Board of Directors ordering the
redemption of the Rights, the Company shall give notice of such redemption to the Rights Agent and
the registered holders of the then outstanding Rights by mailing such notice to all such holders at
each holder’s last address as it appears upon the registry books of the Rights Agent or, prior to
the Distribution Date, on the registry books of the Company for the Common Stock. Any notice that
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 and from time to
time after the occurrence of a Flip-In Event, exchange all or part of the then outstanding and
exercisable Rights (which shall not include Rights that have become null and void pursuant to the
provisions of Section 7(e) hereof) for shares of Common Stock or Common Stock Equivalents
or any combination thereof, at an exchange ratio of one share of Common Stock, or such number of
Common Stock Equivalents or units representing fractions thereof as would be deemed to have the
same value as one share of Common Stock, per Right, appropriately adjusted, if necessary, to
reflect any stock split, stock dividend or similar transaction (such exchange ratio being
hereinafter referred to as the “Exchange Ratio”). Notwithstanding the foregoing, the Board
of Directors may not effect such exchange at any time after (i) any Person (other than an Exempt
Person), together with all Affiliates and Associates of such Person, becomes the Beneficial Owner
of 50% or more of the shares of Common Stock then outstanding or (ii) the occurrence of a Flip-Over
Event.

          (b) Immediately upon the effectiveness of the action of the Board of Directors of the Company
ordering the exchange of any Rights pursuant to and in accordance with subsection (a) of this
Section 24 (the effectiveness of which action may be conditioned on the occurrence of one
or more events or on the existence of one or more facts or may be effective at some future time)
and without any further action and without any notice, the right to exercise such Rights

31

 

shall terminate and the only right thereafter of a holder of such Rights shall be to receive
that number of shares of Common Stock and/or Common Stock Equivalents 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 promptly
shall mail a notice of any such exchange to all of the registered holders of such Rights at their
last addresses as they appear upon the registry books of the Rights Agent. Any notice which is
mailed in the manner herein provided shall be deemed given, whether or not the holder receives the
notice. Each such notice of exchange will state the method by which the exchange of the shares of
Common Stock and/or Common Stock Equivalents for Rights will be effected and, in the event of any
partial exchange, the number of Rights that will be exchanged. Any partial exchange shall be
effected as nearly pro rata as possible based on the number of Rights (other than Rights that have
become void pursuant to the provisions of Section 7(e) hereof) held by each holder of
Rights.

          (c) In the event that the number of shares of Common Stock that are authorized by the
Company’s certificate of incorporation but not outstanding or reserved for issuance for purposes
other than upon exercise of the Rights is not sufficient to permit an exchange of Rights as
contemplated in accordance with this Section 24, the Company may, at its option, take all
such action as may be necessary to authorize additional shares of Common Stock for issuance upon
exchange of the Rights.

          (d) The Company shall not be required to issue fractions of shares of Common Stock or to
distribute certificates or scrip evidencing fractional shares of Common Stock upon exchange of the
Rights. In lieu of such fractional shares of Common Stock, the Company shall pay to the registered
holders of Rights with regard to which such fractional shares of Common Stock would otherwise be
issuable an amount in cash equal to the same fraction of the value of a whole share of Common
Stock. For purposes of this Section 24, the value of a whole share of Common Stock shall
be the Closing Price per share of Common Stock for the Trading Day immediately prior to the date of
exchange pursuant to this Section 24, and the value of any Common Stock Equivalent shall be
deemed to have the same value as the Common Stock on such date.

          Section 25. Notice of Certain Events.

          (a) In case the Company shall propose, at any time after the Distribution Date, (i) to pay
any dividend payable in stock of any class to the holders of Preferred Stock or to make any other
distribution to the holders of Preferred Stock (other than a regular quarterly cash dividend out of
earnings or retained earnings of the Company), or (ii) to offer to the holders of Preferred Stock
rights or warrants to subscribe for or to purchase any additional shares of Preferred Stock or
shares of stock of any class or any other securities, rights or options, or (iii) to effect any
reclassification of its Preferred Stock (other than a reclassification involving only the
subdivision of outstanding shares of Preferred Stock), or (iv) to effect any consolidation or
merger into or with any other Person (other than a wholly owned Subsidiary of the Company in a
transaction that complies with Section 11(o) hereof), or to effect any sale, lease or other
transfer of all or substantially all the Company’s assets to any other Person or Persons (other
than a wholly owned Subsidiary of the Company in a transaction that complies with Section
11(o)

32

 

hereof), or (v) to effect the liquidation, dissolution or winding up of the Company, then, in
each such case, the Company shall give to each holder of record of a Rights Certificate, to the
extent feasible and in accordance with Section 26 hereof, a notice of such proposed action,
which shall specify the record date for the purposes of such stock dividend, distribution of rights
or warrants, or the date on which such reclassification, consolidation, merger, sale, lease,
transfer, liquidation, dissolution or winding up is to take place and the date of participation
therein by the holders of the shares of Preferred Stock, if any such date is to be fixed, and such
notice shall be so given in the case of any action covered by clause (i) or (ii) above at least 20
days prior to the record date for determining holders of the shares of Preferred Stock for purposes
of such action, and in the case of any such other action, at least 20 days prior to the date of the
taking of such proposed action or the date of participation therein by the holders of the shares of
Preferred Stock, whichever shall be the earlier. The failure to give notice required by this
Section 25 or any defect therein shall not affect the legality or validity of the action
taken by the Company or the vote upon any such action.

          (b) In case any Flip-In Event or Flip-Over Event shall occur, then (i) the Company shall as
soon as practicable thereafter give to each registered holder of a Rights Certificate (or if
occurring prior to the Distribution Date, the registered holders of Common Stock), in accordance
with Section 26 hereof, a notice of the occurrence of such event, which shall specify the
event and the consequences of the event to holders of Rights under Section 11(a)(ii) or
Section 13(a) hereof, and (ii) all references in the preceding paragraph to Preferred Stock
shall be deemed thereafter to refer to Common Stock and/or, if appropriate, other securities.

          Section 26. Notices. Notices or demands authorized by this Agreement to be given or
made by the Rights Agent or by the holder of any Rights 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:

CommVault Systems, Inc.

2 Crescent Place

Oceanport NJ 07757

Attention: Warren H. Mondschein

Subject to the provisions of Section 21, any notice or demand authorized by this Agreement
to be given or made by the Company or by the holder of any Rights 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:

Registrar and Transfer Company

10 Commerce Drive

Cranford, NJ 07016

Attention: Henry Farrell

Notices or demands authorized by this Agreement to be given or made by the Company or the Rights
Agent to the holder of any Rights Certificate (or, if prior to the Distribution Date, to the holder
of certificates representing shares of Common Stock) shall be sufficiently given or made

33

 

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 provided in the last sentence of
this Section 27, at any time when 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 Agreement in any respect without the approval of any holders of Rights
or holders of Preferred Stock. At any time when the Rights are not redeemable, except as provided
in the last sentence of this Section 27, the Company may and the Rights Agent shall, if the
Company so directs, supplement or amend this Agreement without the approval of any holders of
Rights in order (i) to cure any ambiguity, (ii) to correct or supplement any provision contained
herein that may be defective or inconsistent with any other provisions herein, (iii) to shorten or
lengthen any time period hereunder or (iv) to change or supplement the provisions hereunder in any
manner that the Company may deem necessary or desirable; provided that no such amendment or
supplement shall materially adversely affect the interests of the holders of Rights (other than an
Acquiring Person or an Affiliate or Associate of an Acquiring Person); and further provided
that this Agreement may not be supplemented or amended pursuant to this sentence to lengthen (A) a
time period relating to when the Rights may be redeemed or (B) any other time period unless the
lengthening of such other time period is for the purpose of protecting, enhancing or clarifying the
rights of, and/or the benefits to, the holders of Rights (other than any Acquiring Person and its
Affiliates and Associates). Upon the delivery of a certificate from an appropriate officer of the
Company which states that the proposed supplement or amendment is in compliance with the terms of
this Section 27, the Rights Agent shall execute such supplement or amendment;
provided, however, that the Rights Agent may, but shall not be obligated to, enter
into any such supplement or amendment that affects the Rights Agent’s own rights, duties or
immunities under this Agreement. Notwithstanding anything contained in this Agreement to the
contrary, no supplement or amendment shall be made that decreases the Redemption Price.

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

          Section 29. Determinations and Actions by the Board of Directors, etc. For all
purposes of this Agreement, any calculation of the number of shares of Preferred Stock or Common
Stock outstanding at any particular time, including for purposes of determining the particular
percentage of such outstanding shares of Preferred Stock or Common Stock of which any Person is the
Beneficial Owner, shall, subject to the last sentence of the definition of Beneficial Owner in
Section 1, be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the
General Rules and Regulations under the Exchange Act as in effect on the date of this Agreement.
The Board of Directors of the Company (or, as set forth herein, certain specified members thereof)
shall have the exclusive power and authority to administer this Agreement and to exercise all
rights and powers specifically granted to the Board of Directors of the Company or to the Company,
or as may be necessary or advisable in the administration of this Agreement, including, without
limitation, the right and power to (i) interpret the provisions of this Agreement and (ii) make all
determinations deemed necessary or advisable for the administration of this Agreement (including,
without limitation, a determination to redeem or not

34

 

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

          Section 31. Severability. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired or invalidated;
provided, however, that notwithstanding anything in this Agreement to the contrary,
if any such term, provision, covenant or restriction is held by such court or authority to be
invalid, void or unenforceable and the Board of Directors of the Company determines in its good
faith judgment that severing the invalid language from this Agreement would adversely affect the
purpose or effect of this Agreement, then, unless there has occurred any merger referred to in the
proviso to the first sentence of Section 23(a), the right of redemption set forth in
Section 23 hereof shall be reinstated and shall not expire until the close of business on
the tenth day following the date of such determination by the Board of Directors of the Company or,
if earlier, immediately prior to any such merger. Without limiting the foregoing, if any provision
requiring that a determination be made by less than the entire Board of Directors of the Company is
held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable,
such determination shall then be made by the entire Board of Directors of the Company.

          Section 32. Governing Law. This Agreement, each Right and each Rights 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 made and to be performed entirely within such State.

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

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

[Signature page follows]

35

 

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

	 	 	 	 	 
	 	COMMVAULT SYSTEMS, INC.

 	 
	 	By:  	/S/ N. ROBERT HAMMER
 	 
	 	 	Name:  	N. Robert Hammer 	 
	 	 	Title:  	Chairman, President and
 Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	REGISTRAR AND TRANSFER COMPANY

 	 
	 	By:  	/S/ WILLIAM P. TATLER
 	 
	 	 	Name:  	William P. Tatler 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

Exhibit A

FORM OF

CERTIFICATE OF DESIGNATION

OF

SERIES A JUNIOR PARTICIPATING PREFERRED STOCK OF

COMMVAULT SYSTEMS, INC.

Pursuant to Section 151 of the Delaware General Corporation Law

     The undersigned duly authorized officers of CommVault Systems, Inc. (the “Corporation”), a
Delaware corporation, in accordance with the provisions of Section 103 of the Delaware General
Corporation Law (the “DGCL”), DO HEREBY CERTIFY:

     That the Board of Directors of the Corporation on November 13, 2008, at a meeting duly called
and held, adopted the following resolution creating a series of 150,000 shares of Preferred Stock,
par value $0.01 per share, designated as Series A Junior Participating Preferred Stock:

     RESOLVED, that pursuant to the authority granted to and vested in the Board of Directors by
the Amended and Restated Certificate of Incorporation of the Corporation (as amended from time to
time, the “Certificate of Incorporation”), the Board of Directors hereby authorizes that a series
of Preferred Stock, par value $0.01 per share, of the Corporation be, and hereby is, created and
approved for issuance out of the Preferred Stock authorized in the Certificate of Incorporation,
and hereby fixes the designation and amount thereof and the voting powers, preferences and
relative, participating, optional or other special rights, and the qualifications, limitations or
restrictions thereof, as follows:

     1. Designation and Amount. There shall be a series of Preferred Stock of the
Corporation which shall be designated as “Series A Junior Participating Preferred Stock,” par value
$0.01 per share, (hereinafter called “Series A Preferred Stock”), and the number of shares
constituting such series shall be 150,000. Such number of shares may be increased or decreased by
resolution of the Board of Directors and by the filing of a certificate pursuant to the provisions
of the DGCL stating that such increase or reduction has been so authorized; provided,
however, that no decrease shall reduce the number of shares of Series A Preferred Stock to
a number less than the number of shares of Series A Preferred Stock issuable upon exercise of
outstanding rights, options or warrants or upon conversion of outstanding securities issued by the
Corporation.

     2. Dividends and Distributions.

     (A) Subject to the prior and superior rights of the holders of any shares of any series of
Preferred Stock ranking prior and superior to the shares of Series A Preferred Stock with respect
to dividends, the holders of shares of 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 to holders of record on the last business day of March, June,
September and December in each year (each such date being referred to herein as a “Quarterly
Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the

A-1

 

first issuance of a share or fraction of a share of Series A Preferred Stock, in an amount per
share (rounded to the nearest cent) equal to 1,000 times the aggregate per share amount of all cash
dividends (subject to the provision for adjustment hereinafter set forth), 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 (hereinafter defined) or a subdivision of the
outstanding shares of Common Stock (by reclassification or otherwise), declared on the common
stock, par value $0.01 per share, of the Corporation (the “Common Stock”) since the immediately
preceding Quarterly Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment
Date, since the first issuance of any share or fraction of a share of Series A Preferred Stock. In
the event the Corporation shall at any time (i) declare any dividend on Common Stock payable in
shares of Common Stock, (ii) subdivide the outstanding Common Stock or (iii) combine the
outstanding Common Stock into a smaller number of shares, then in each such case the amount to
which holders of shares of Series A Preferred Stock were entitled immediately prior to such event
under the preceding sentence shall be adjusted by multiplying each such amount by a fraction the
numerator of which is the number of shares of Common Stock outstanding immediately after such event
and the denominator of which is the number of shares of Common Stock that were outstanding
immediately prior to such event.

     (B) The Corporation shall declare a dividend or distribution on the Series A Preferred Stock
as provided in paragraph (A) above at the time it declares a dividend or distribution on the Common
Stock (other than a dividend payable in shares of Common Stock).

     (C) No dividend or distribution (other than a dividend payable in shares of Common Stock)
shall be paid or payable to the holders of shares of Common Stock unless, prior thereto, all
accrued but unpaid dividends to the date of such dividend or distribution shall have been paid to
the holders of shares of Series A Preferred Stock.

     (D) Dividends shall begin to accrue and be cumulative on outstanding shares of Series A
Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issue of such
shares of Series A Preferred Stock, unless the date of issue of such shares is prior to the record
date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall
begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly
Dividend Payment Date or is a date after the record date for the determination of holders of shares
of Series A Preferred Stock entitled to receive a quarterly dividend and before such Quarterly
Dividend Payment Date, in either of which events such dividends shall begin to accrue and be
cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear
interest. Dividends paid on the shares of Series A Preferred Stock in an amount less than the
total amount of such dividends at the time accrued and payable on such shares shall be allocated
pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of
Directors may fix 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 no more than 30 days prior to the date fixed for the payment thereof.

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

A-2

 

     (A) Subject to the provision for adjustment hereinafter set forth, each one one-thousandth of
a share of Series A Preferred Stock shall entitle the holder thereof to one vote on all matters
submitted to a vote of the shareholders of the Corporation. In the event the Corporation shall at
any time (i) declare any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide
the outstanding Common Stock or (iii) combine the outstanding Common Stock into a smaller number of
shares, then in each such case the number of votes per share to which holders of shares of Series A
Preferred 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 or by law, the holders of shares of Series A Preferred
Stock and the holders of shares of Common Stock and any other capital stock of the Corporation
having general voting rights shall vote together as one class on all matters submitted to a vote of
shareholders of the Corporation.

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

     (ii) Upon the vesting of such right of the holders of the Preferred Stock, the maximum
authorized number of members of the Board of Directors shall automatically be increased by
two and the two vacancies so created shall be filled by vote of the holders of the
outstanding Preferred Stock as hereinafter set forth. A special meeting of the shareholders
of the Corporation then entitled to vote shall be called by the Chairman or the President or
the Secretary of the Corporation, if requested in writing by the holders of record of not
less than 10% of the Preferred Stock then outstanding. At such special meeting, or, if no
such special meeting shall have been called, then at the next annual meeting of shareholders
of the Corporation, the holders of the shares of the Preferred Stock shall elect, voting as
above provided, two directors of the Corporation to fill the aforesaid vacancies created by
the automatic increase in the number of members of the Board of Directors. At any and all
such meetings for such election, the holders of a majority of the outstanding shares of the
Preferred Stock shall be necessary to constitute a quorum for such election, whether present
in person or by proxy, and such two directors shall be elected by the vote of at least a
plurality of shares held by such shareholders present or represented at the meeting. Any
director elected by holders of shares of the Preferred Stock pursuant to this Section may be
removed at any annual or special meeting, by vote of a majority of the shareholders voting
as a class who elected such director, with or without cause. In case any vacancy shall
occur among the directors elected by the holders of the Preferred Stock pursuant to this
Section, such vacancy may

A-3

 

be filled by the remaining director so elected, or his successor then in office, and
the director so elected to fill such vacancy shall serve until the next meeting of
shareholders for the election of directors. After the holders of the Preferred Stock shall
have exercised their right to elect directors in any default period and during the
continuance of such period, the number of directors shall not be further increased or
decreased except by vote of the holders of Preferred Stock as herein provided or pursuant to
the rights of any equity securities ranking senior to or pari passu with the
Series A Preferred Stock.

     (iii) The right of the holders of the Preferred Stock, voting separately as a class, to
elect two members of the Board of Directors of the Corporation as aforesaid shall continue
until, and only until, such time as all arrears in dividends (whether or not declared) on
the Preferred Stock shall have been paid or declared and set apart for payment, at which
time such right shall terminate, except as herein or by law expressly provided, subject to
revesting in the event of each and every subsequent default of the character
above-mentioned. Upon any termination of the right of the holders of the shares of the
Preferred Stock as a class to vote for directors as herein provided, the term of office of
all directors then in office elected by the holders of Preferred Stock pursuant to this
Section shall terminate immediately. Whenever the term of office of the directors elected
by the holders of the Preferred Stock pursuant to this Section shall terminate and the
special voting powers vested in the holders of the Preferred Stock pursuant to this Section
shall have expired, the maximum number of members of the Board of Directors of the
Corporation shall be such number as may be provided for in the By-laws of the Corporation or
in a resolution of the Board of Directors adopted pursuant thereto, irrespective of any
increase made pursuant to the provisions of this Section.

     (D) Except as set forth herein, 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.

     4. Certain Restrictions.

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

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

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

A-4

 

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

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

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

     5. Reacquired Shares. Any shares of Series A Preferred Stock purchased or otherwise
acquired by the Corporation in any manner whatsoever shall be retired and canceled promptly after
the acquisition thereof. All such shares shall upon their cancellation become authorized but
unissued shares of Preferred Stock and may be reissued as part of a new series of Preferred Stock
to be created by resolution or resolutions of the Board of Directors, subject to the conditions and
restrictions on issuance set forth herein.

     6. Liquidation, Dissolution or Winding Up.

     (A) Upon any voluntary liquidation, dissolution or winding up of the Corporation, no
distribution shall be made to the holders of shares of stock ranking junior (either as to dividends
or upon liquidation, dissolution or winding up) to the Series A Preferred Stock unless, prior
thereto, the holders of shares of Series A Preferred Stock shall have received $1.00 per share,
plus an amount per share equal to accrued and unpaid dividends and distributions thereon, whether
or not declared, to the date of such payment (collectively, the “Series A Liquidation Preference”).
Following the payment of the full amount of the Series A Liquidation Preference, no additional
distributions shall be made to the holders of shares of Series A Preferred Stock unless, prior
thereto, the holders of shares of Common Stock shall have received an amount per share (the “Common
Adjustment”) equal to the quotient obtained by dividing (i) the Series A Liquidation Preference by
(ii) 1,000 (as appropriately adjusted as set forth in subparagraph C below to reflect such events
as stock splits, stock dividends and recapitalizations with respect to the Common Stock) (such
number in clause (ii), the “Adjustment Number”). Following the payment of the full amount of the
Series A Liquidation Preference and the Common Adjustment in respect of all outstanding shares of
Series A Preferred Stock and Common Stock, respectively, holders of Series A Preferred Stock and
holders of shares of Common Stock shall receive their ratable and proportionate share of the
remaining assets to be distributed in the ratio, on a per

A-5

 

share basis, of the Adjustment Number to 1 with respect to such Preferred Stock and Common
Stock, on a per share basis, respectively.

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

     (C) In the event the Corporation shall at any time (i) declare any dividend on Common Stock
payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock or (iii) combine the
outstanding Common Stock into a smaller number of shares, then in each such case the Adjustment
Number in effect immediately prior to such event shall be adjusted by multiplying such Adjustment
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.

     7. Consolidation, Merger, etc. In case the Corporation shall enter into any
consolidation, merger, combination or other transaction in which the shares of Common Stock are
exchanged for or changed into other stock or securities, cash and/or any other property, then in
any such case the shares of Series A Preferred Stock shall at the same time be similarly exchanged
or changed in an amount per share (subject to the provision for adjustment hereinafter set forth)
equal to 1,000 times the aggregate amount of stock, securities, cash and/or any other property
(payable in kind), as the case may be, into which or for which each share of Common Stock is
changed or exchanged. In the event the Corporation shall at any time (i) declare any dividend on
Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock or
(iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case
the amount set forth in the preceding sentence with respect to the exchange or change of shares of
Series A Preferred 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.

     8. Redemption. The shares of a Series A Preferred Stock shall not be redeemable by
the Corporation. The preceding sentence shall not limit the ability of the Corporation to purchase
or otherwise deal in such shares of stock to the extent permitted by law.

     9. Ranking. The Series A Preferred Stock shall rank junior to all other series of the
Corporation’s preferred stock (whether with or without par value) as to the payment of dividends
and the distribution of assets, unless the terms of any such series shall provide otherwise.

     10. Amendment. The Certificate of Incorporation of the Corporation, as amended as of
this date, shall not be amended in any manner which would materially alter or change the powers,
preferences or special rights of the Series A Preferred Stock so as to affect them adversely
without the affirmative vote of the holders of a majority or more of the outstanding shares of
Series A Preferred Stock, voting separately as a class.

A-6

 

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

     IN WITNESS WHEREOF, the Corporation has caused this Certificate to be signed by [NAME], its
[TITLE], and the same to be attested by [NAME], its [TITLE] on this       day of                     .

	 	 	 	 	 
	 	COMMVAULT SYSTEMS, INC.

 
	 	  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	Attest

 	 
	
 	 	 
	Name:  	 	 	 	 
	Title:  	 	 	 	 

A-7

 

	 	 	 	 	 

Exhibit B

[Form of Rights Certificate]

	 	 	 	 	 
	Certificate No. R-
	 	                     Rights

NOT EXERCISABLE AFTER November 14, 2018 OR EARLIER IF REDEEMED OR EXCHANGED BY THE COMPANY. THE
RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $0.001 PER RIGHT ON THE TERMS
SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE RIGHTS AGREEMENT,
RIGHTS BENEFICIALLY OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS, WAS OR BECOMES AN ACQUIRING
PERSON OR AN AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND
CERTAIN TRANSFEREES THEREOF WILL BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.

RIGHTS CERTIFICATE

COMMVAULT SYSTEMS, INC.

     This certifies that                                     , or registered assigns, is the registered owner of
the number of Rights set forth above, each of which entitles the owner thereof, subject to the
terms, provisions and conditions of the Rights Agreement, dated as of November 14, 2008, as it may
from time to time be supplemented or amended (the “Rights Agreement”), between CommVault
Systems, Inc., a Delaware corporation (the “Company”), and Registrar and Transfer Company,
a New Jersey corporation, (the “Rights Agent”), to purchase from the Company at any time
prior to 5:00 p.m. (New York City time) on November 14, 2018 at the principal office or offices of
the Rights Agent designated for such purpose, or its successors as Rights Agent, one one-thousandth
of a fully paid, nonassessable share (a “Fractional Share”) of Series A Junior
Participating Preferred Stock (the “Preferred Stock”) of the Company, at a purchase price
of $80 per one one-thousandth of a share (the “Purchase Price”), upon presentation and
surrender of this Rights Certificate with the Form of Election to Purchase and related Certificate
set forth on the reverse hereof duly executed. The Purchase Price may be paid in cash or by
certified check, cashier’s or official bank check or bank draft payable to the order of the Company
or the Rights Agent. The number of Rights evidenced by this Rights Certificate (and the number of
shares which may be purchased upon exercise thereof) set forth above, and the Purchase Price per
Fractional Share set forth above, are the number and Purchase Price as of November 24, 2008, based
on the Preferred Stock as constituted at such date. The Company reserves the right to require
prior to the occurrence of a Triggering Event (as such term is defined in the Rights Agreement)
that a number of Rights be exercised so that only whole shares of Preferred Stock will be issued.

     From and after the first occurrence of a Triggering Event (as such term is defined in the
Rights Agreement), if the Rights evidenced by this Rights Certificate are beneficially owned by or
transferred to (i) an Acquiring Person or an Associate or Affiliate of an Acquiring Person (as such
terms are defined in the Rights Agreement), (ii) a transferee of any such Acquiring Person,

B-1

 

Associate or Affiliate, or (iii) under certain circumstances specified in the Rights
Agreement, a transferee of a person who, concurrently with or after such transfer, became an
Acquiring Person or an Affiliate or Associate of an Acquiring Person, such Rights shall, with
certain exceptions, become null and void in the circumstances set forth in the Rights Agreement,
and no holder hereof shall have any rights whatsoever with respect to such Rights from and after
the occurrence of such Triggering Event.

     As provided in the Rights Agreement, the Purchase Price and the number and kind of shares of
Preferred Stock or other securities or assets that may be purchased upon the exercise of the Rights
evidenced by this Rights Certificate are subject to modification and adjustment upon the happening
of certain events, including Triggering Events.

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

     This Rights Certificate, with or without other Rights Certificates, upon surrender at the
principal office or offices of the Rights Agent designated for such purpose, may be exchanged for
another Rights Certificate or Rights Certificates of like tenor and date evidencing Rights
entitling the holder to purchase a like aggregate number of Fractional Shares of Preferred Stock as
the Rights evidenced by the Rights Certificate or Rights Certificates surrendered shall have
entitled such holder to purchase. If this Rights Certificate shall be exercised in part, the
holder shall be entitled to receive upon surrender hereof another Rights Certificate or Rights
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 its option at a redemption price of $0.001 per Right,
payable, at the election of the Company, in cash or shares of Preferred Stock or such other
consideration as the Board of Directors may determine, at any time prior to the earlier of the
close of business on (a) the tenth day following the first public announcement of the occurrence of
a Flip-In Event (as such time period may be extended or shortened pursuant to the Rights Agreement)
and (b) the Expiration Date (as such term is defined in the Rights Agreement) or (ii) may be
exchanged in whole or in part for shares of the Company’s Common Stock, par value $0.01 per share,
and/or other equity securities of the Company deemed to have the same value as shares of Preferred
Stock, at any time prior to a person’s becoming the Beneficial Owner (as such term is defined in
the Rights Agreement) of 50% or more of the shares of Common Stock outstanding or the occurrence of
a Flip-Over Event.

     No fractional shares of Preferred Stock are required to be issued upon the exercise of any
Right or Rights evidenced hereby (other than, except as set forth above, fractions that are
integral multiples of a Fractional Share of Preferred Stock, which may, at the election of the
Company,

B-2

 

be evidenced by depositary receipts), but in lieu thereof a cash payment may be made, as
provided in the Rights Agreement.

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

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

     WITNESS the signature of the proper officers of the Company and its corporate seal.

	 	 	 	 	 
	Dated as of                     ,      
	 	 	 	 
	
ATTEST:

	 	COMMVAULT SYSTEMS, INC.	 
	
__________________

	 	
By 	 	 
	Title:
	 	 	 	 

	 	 	 	 	 
	Countersigned:

 	 	 
	By:  	 	 	 
	 	Authorized Signature 	 	 
	 	 	 	 

B-3

 

	 	 	 	 	 

[Form of Reverse Side of Rights Certificate]

FORM OF ASSIGNMENT

(To be executed by the registered holder if such holder desires

to transfer any Rights evidenced by the Rights Certificate.)

FOR VALUE RECEIVED                                                                  
                hereby sells, assigns and transfers unto __________________

 

 

(Please print name and address of transferee)

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

Dated:                     , 20     

	 	 	 	 	 
	 	  	
 	 
	 	 	Signature 	 
	 	 	 	 

Signature Guaranteed:

Signatures must be guaranteed by a member firm of a national securities exchange, a member of the
National Association of Securities Dealers, Inc., a commercial bank or trust company having an
office or correspondent in the United States or another eligible guarantor institution (as defined
pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended).

B-4

 

CERTIFICATE

     The undersigned hereby certifies by checking the appropriate boxes that:

     (1) the Rights evidenced by this Rights Certificate [ ] are [ ] are not being sold, assigned
and transferred by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or
Associate of an Acquiring Person (as such terms are defined pursuant to the Rights Agreement);

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

	 	 	 	 
	Dated:                     ,      

	 	 
	 
	 

	 	Signature
	 

Signature Guaranteed:

Signatures must be guaranteed by a member firm of a national securities exchange, a member of the
National Association of Securities Dealers, Inc., a commercial bank or trust company having an
office or correspondent in the United States or another eligible guarantor institution (as defined
pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended).

NOTICE

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

B-5

 

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires to exercise

Rights represented by the Rights Certificate)

To: CommVault Systems, Inc.

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

Please insert social security

or other identifying number

 

(Please print name and address)

 

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

Please insert social security

or other identifying number

 

(Please print name and address)

 

Dated:                     ,      

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Signature 	 
	 	 	 	 

Signature Guaranteed:

Signatures must be guaranteed by a member firm of a national securities exchange, a member of the
National Association of Securities Dealers, Inc., a commercial bank or trust company having an
office or correspondent in the United States or another eligible guarantor institution (as defined
pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended).

B-6

 

CERTIFICATE

     The undersigned hereby certifies by checking the appropriate boxes that:

     (1) the Rights evidenced by this Rights Certificate [ ] are [ ] are not being exercised by or
on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of an
Acquiring Person (as such terms are defined pursuant to the Rights Agreement);

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

	 	 	 	 
	Dated:                     ,      

	 	 
	 
	 

	 	Signature
	 

Signature Guaranteed:

Signatures must be guaranteed by a member firm of a national securities exchange, a member of
the National Association of Securities Dealers, Inc., a commercial bank or trust company having an
office or correspondent in the United States or another eligible guarantor institution (as defined
pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended).

NOTICE

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

B-7<PAGE>

                                                                    Exhibit 10.1

                                Dated __ June 2008

                                  WGN (GER) LLC

                                  (as Landlord)

                                       and

                          WAGON AUTOMOTIVE NAGOLD GmbH

                                   (as Tenant)

                                 LEASE AGREEMENT

           Premises: Lise-Meitner, Strasse 10, 72202, Nagold, Germany

                                       -1-

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>  <C>                                                                    <C>
1    Lease of the Premises...............................................      4
2    Guarantee...........................................................      4
3    Definitions.........................................................      4
4    Interpretation......................................................     10
5    Lease Term..........................................................     11
6    Transfer of Possession..............................................     11
7    Rent................................................................     12
8    VAT.................................................................     12
9    Insurance...........................................................     14
10   Tenant's Obligations................................................     18
     10.1    Rent and Other Payments.....................................     18
     10.2    Repair and Replacement......................................     18
     10.3    Alterations and Additions...................................     19
     10.4    Signs and reletting notices.................................     21
     10.5    Use, Occupancy..............................................     21
     10.6    Alienation..................................................     21
     10.7    Entry.......................................................     23
     10.8    Compliance with Law.........................................     24
     10.9    Outgoings, costs and fees...................................     25
     10.10   Taxes; VAT..................................................     26
     10.11   General requirements concerning use.........................     26
     10.12   Indemnity...................................................     26
     10.13   Environmental requirements..................................     26
     10.14   Not to overload.............................................     27
     10.15   Guarantee..................................................      27
     10.16   Compulsory Purchase.........................................     27
     10.17   Restoration.................................................     28
11   Security Deposit....................................................     30
12   Covenant of Quiet Enjoyment.........................................     32
13   Post Closing Obligations............................................     32
14   Financing of Expansion..............................................     32
15   General Provisions..................................................     36
     15.1    Events of Default...........................................     36
     15.2    Surrender of the Premises...................................     37
     15.3    Service of notices..........................................     38
     15.4    Failure to perform obligations..............................     39
     15.5    Waiver of right to forfeit..................................     39
     15.6    Covenants relating to adjoining Premises....................     39
     15.7    Entire understanding; Schedules.............................     40
     15.8    Severance...................................................     40
     15.9    Governing law and jurisdiction..............................     40
     15.10   Non-recourse................................................     40
     15.11   Requests for information....................................     40
     15.12   Amendments..................................................     41
     15.13   Successors and Assigns......................................     41
     15.14   Requirement of Written Form.................................     41
     15.15   Representation by Landlord..................................     41

Annex 1 Premises.........................................................

Schedule 1 Intentionally Omitted.........................................
Schedule 2 Basic Rent and Provisions for Rent Adjustments................
</TABLE>

                                       -2-

<PAGE>

<TABLE>
<S>                                                                         <C>
Schedule 3 Intentionally Omitted.........................................
Schedule 4 Corporate Covenants...........................................
Schedule 5 Post Closing Obligations......................................
Schedule 6 Fixtures......................................................
Schedule 7 Property Condition Report.....................................

EXECUTION of Lease Agreement:............................................     42
</TABLE>

                                       -3-
<PAGE>

THIS LEASE AGREEMENT is made as of _____ June, 2008

BETWEEN:

(1)  WGN (GER) LLC, a limited liability company organised under the laws of the
     state of Delaware, U.S.A. with an office at c/o W. P. Carey & Co. LLC, 50
     Rockefeller Plaza, 2nd Floor,, New York, New York 10020, Attention,
     Director Asset Management (hereinafter referred to as the "LANDLORD"); and

(2)  WAGON AUTOMOTIVE NAGOLD GMBH, a company with its statutory seat in Nagold,
     Germany, and registered with the trade register maintained at the local
     court of Stuttgart, Germany, under number HRB 340107 (hereinafter referred
     to as the "TENANT");

the above companies hereinafter jointly referred to at the "PARTIES".

All of the terms of this Lease Agreement have been individually negotiated
between the Parties.

FOR GOOD AND VALUABLE CONSIDERATION RECEIVED THE LANDLORD AND THE TENANT AGREE
AS FOLLOWS:

1    LEASE OF THE PREMISES

     1.1  The Landlord is the legal owner of the Premises as more fully
          described in Annex 1 hereto.

     1.2  The Premises shall include items (i), (ii) and (iii) of this Clause
          1.2 now or hereafter located thereon or therein and appertaining
          thereto: (i) the Land (as hereinafter defined) together with the
          Appurtenances (as hereinafter defined), (ii) the Improvements (as
          hereinafter defined), and (iii) the Fixtures (as hereinafter defined).

     1.3  The Landlord hereby demises and lets to the Tenant, and the Tenant
          hereby takes and leases from the Landlord the Premises for the term
          and upon the provisions hereinafter provided.

2    GUARANTEE

     2.1  The Guarantor shall guarantee all obligations of the Tenant, so that
          under this Lease, Guarantor shall (save as provided for in the
          Guarantee) always be jointly and severally liable to the Landlord for
          the performance of all of the Tenant's obligations under this Lease.

3    DEFINITIONS

     In this Lease agreement the following expressions have the following
     meanings:

     3.1  ACQUISITION COST shall mean E19,583,500.

     3.2  AFFILIATE of any Person means any Person which shall (i) control, (ii)
          be under the control of, or (iii) be under common control with such
          Person (the term "control" as used herein shall be deemed to mean
          ownership of more than 50% of the outstanding voting stock of a
          corporation or other majority equity and control interest if such
          Person is not a corporation) and the power to direct or cause the
          direction of the management or policies of such Person.

                                       -4-

<PAGE>

     3.3  ALTERATION OR ADDITIONS means all alterations and additions made to
          any part of the Premises including without limitation additions or
          alterations to the Fixtures, changes to the existing design or
          appearance of the Premises or any alteration in or extension to the
          electrical or other installations located in the Premises or the
          erection of any new building or other structures.

     3.4  APPURTENANCES shall mean all easements, rights-of-way and rights
          associated with the Land.

     3.5  BASIC RENT means the amount per annum set forth in Clause 1 of
          SCHEDULE 2 as increased in accordance with the provisions of SCHEDULE
          2, and payable in accordance with Clause 7 of this Lease.

     3.6  CASUALTY means any damage to, or destruction of the Premises.

     3.7  COMMENCEMENT DATE means the date the purchase price is paid under the
          Purchase and Sale Agreement.

     3.8  COMPETENT AUTHORITY means any national or local governmental agency,
          body or other entity having enforcement or regulatory powers in
          Germany in respect of any Environmental Law.

     3.9  COMPULSORY PURCHASE shall mean any expropriation or taking of all or a
          material portion of the Premises, (i) by compulsory purchase or other
          proceedings brought by any authorized governmental or other public
          authority ("Enteignung") pursuant to any Law, which relate to the
          same, or (ii) by reason of any agreement with any purchaser in
          settlement of, or under threat of, any such compulsory purchase or
          other proceeding brought by a governmental body, agency or department,
          or (iii) a Requisition. The Compulsory Purchase shall be considered to
          have taken place on the date in which the decision enforcing the
          Compulsory Purchase, issued by a relevant authority, becomes final or
          on the date on which an agreement transferring the Premises (or
          portion thereof) to the applicable governmental authority is entered
          into.

     3.10 COMPULSORY PURCHASE NOTICE shall mean an official notice on the
          commencement of any proceeding for Compulsory Purchase.

     3.11 DANGEROUS SUBSTANCES means any substance (whether in the form of a
          solid, liquid, gas or vapour) the generation, keeping, transportation,
          storage, treatment, use or disposal of which gives rise to a risk of
          causing harm to man or to any other living organism or causing damage
          to the environment and includes (but without limitation) any
          controlled, special, hazardous, toxic, radioactive or dangerous waste;
          all substances in the Tenant's fittings, plant, machinery and stock
          used for the Permitted Use will not be included in this definition of
          Dangerous Substances, provided that: (i) such substances are in common
          normal use or necessary for a new technical invention in relation to
          or for purposes analogous to the Permitted Use in terms of applicable
          technical standards, (ii) they do not exceed maximum quantities
          specified under applicable law, and (iii) they are properly secured
          and do not constitute a danger of any kind to anyone.

     3.12 DEFAULT AMOUNT means the Outstanding Amounts.

     3.13 ENVIRONMENTAL CONSULTANT shall mean ENVIRON UK Ltd.

                                      -5-

<PAGE>

     3.14 ENVIRONMENTAL LAW shall mean (a) whenever enacted or promulgated, any
          applicable federal, state and local law, statute, ordinance, rule,
          regulation, license, permit, authorization, approval, consent, court
          order, judgment, decree, injunction, code, requirement or agreement
          with any governmental entity, (i) relating to pollution (or the
          cleanup thereof), or the protection of air, water vapor, surface
          water, groundwater, drinking water supply, land (including land
          surface or subsurface), plant, aquatic and animal life from injury
          caused by a Hazardous Substance or (ii) concerning exposure to, or the
          use, containment, storage, recycling, reclamation, reuse, treatment,
          generation, discharge, transportation, processing, handling,
          labelling, production, disposal or remediation of Hazardous
          Substances, Hazardous Conditions or Hazardous Activities, in each case
          as amended and as now or hereafter in effect, and (b) any common law
          or equitable doctrine (including, without limitation, injunctive
          relief and tort doctrines such as negligence, nuisance, trespass and
          strict liability) that may impose liability or obligations for
          injuries or damages due to or threatened as a result of the presence
          of, exposure to, or ingestion of, any Hazardous Substance. The term
          Environmental Law includes inter alia, the Federal Emission Control
          Act ("Bundes-Immissionschutzgesetz BImSchG"), the Federal Soil
          Protection Act ("Bundesbodenschutzgesetz"), the Federal Water
          Protection Act ("Wasserhaushaltsgesetz"), the Federal Recycling and
          Pollution Prevention Act ("Kreislaufwirtschafts und Abfallgesetz"),
          the German Civil Code, including all regulations (Rechtsverordnungen)
          which have their legal basis ("Ermachtigungsgrundlage") in the
          aforementioned statutes, each as amended and as now or hereafter in
          effect and any similar state or local Law.

     3.15 ENVIRONMENTAL PERMITS means any and all consents, permits or
          authorisations required under Environmental Law in connection with the
          Tenant's use and occupation of the Premises;

     3.16 EUR (also EURO or E) means the single currency of the participating
          Member States in the Third State of European Economic and Monetary
          Union of the Treaty Establishing the European Community, as amended
          from time to time.

     3.17 EVENT OF DEFAULT means any breach or non-performance of the terms of
          this Lease whether of a monetary or non-monetary nature, including
          breach or non-performance of covenants, representations and warranties
          of Tenant under this Lease.

     3.18 FIXTURES means all plant and machinery as described in Schedule 6
          hereto.

     3.19 GERMAN CIVIL CODE means the German statutory law for civil matters
          titled "Buergerliches Gesetzbuch" ("BGB").

     3.20 GUARANTEE means the Guarantee issued on the date of this Lease by the
          Guarantor in favor of Landlord in order to secure the performance of
          all of the Tenant's obligations under this Lease.

     3.21 GUARANTOR means Wagon PLC, whose registered office is at 3500
          Parkside, Birmingham Business Park, Birmingham B37 7YG, a company
          registered in England under registration number 150042 together with
          its permitted successors and assigns and any guarantor that may be
          substituted for Guarantor in compliance with the terms of this Lease
          and the Guaranty.

                                      -6-

<PAGE>

     3.22 GUARANTOR INSOLVENCY EVENT means Guarantor Insolvency Event as defined
          in Clauses 15.1.3(i) and (ii).

     3.23 IAS means international accounting standards as issued by the Board of
          the International Accounting Standards Committee (IASC) or any other
          internationally recognized accounting standard consistently applied by
          such Person, including, but not limited to German GAAP, UK GAAP and
          IAS.

     3.24 IMPROVEMENTS means all buildings, premises, structures and other
          improvements constructed on the Land and any future improvements
          developed on the Land within the Term of this Lease in accordance with
          terms and conditions hereof.

     3.25 INSURANCE PREMIUMS means all sums payable by the Tenant pursuant to
          Clause 9.1.1 under relevant insurances.

     3.26 INSURED RISKS means the risks insured to be against under Clause
          9.1.1.

     3.27 INTEREST means eight (8) percentage points above base rate as defined
          in Sec. 247 para 1 of the German Civil Code.

     3.28 INVOICE means any invoice issued by the Landlord to the Tenant for the
          payment of the Basic Rent, the Outgoings, or other amounts to be paid
          by the Tenant to the Landlord under the terms of this Lease.

     3.29 LAND means the parcels of land identified on Annex 1 hereto and
          situated in Nagold, Germany.

     3.30 LANDLORD means the Person first named herein as the Landlord and its
          successors and assignees.

     3.31 LAW includes any constitution, decree, judgment, legislation, order,
          ordinance, regulation, statute, treaty or other legislative measure in
          Germany (including zoning regulations) and any present or future
          directive, regulation, guideline, practice, concession, request or
          requirement issued by any German authority, as well as applicable
          European Union regulations, directives and treaties, including, but
          not limited to the German Civil Code.

     3.32 LEASE means this Lease Agreement.

     3.33 LEASE YEAR means, with respect to the first Lease Year, the period
          commencing on the Commencement Date and ending at midnight on the last
          day of the twelfth (12th) full consecutive calendar month following
          the month in which the Commencement Date occurred, and each succeeding
          twelve (12) month period during the Term.

     3.34 LENDER shall mean any Person (and its respective successors and
          assignees) which may, on or after the date hereof, make a Loan to the
          Landlord (the Landlord will notify the Tenant of such Lender if the
          Lender is different from the Mortgagee).

     3.35 LOAN means any loan made by one, or more Lenders: (a) to the Landlord
          in connection with the financing of the Premises or, at any time, or
          from time to time, any increase in such loan or any refinancing of any
          such loan (which may include any increase in the principal amount
          thereof); or (b) to any purchaser in connection with the purchase of
          the Premises or the interests in Landlord or, at any time, or from
          time to time, any refinancing of such loan (which may include any
          increase in the principal amount thereof).

                                      -7-
<PAGE>

     3.36 MATERIAL LEASE DEFAULT shall mean an Event of Default under Clauses
          15.1.1, 15.1.2, 15.1.3, 15.1.4, 15.1.5 or 15.1.7 of this Lease or
          Clause 15.1.1 of the Waldaschaff Lease.

     3.37 MORTGAGE means any legal instrument which secures the Landlord's
          obligation to repay a Loan.

     3.38 MORTGAGEE means the holder of a Mortgage or similar lien (the Landlord
          will notify the Tenant about the establishment of the Mortgage or
          similar lien and such notification will indicate the Mortgagee).

     3.39 NET AWARD shall mean the entire award payable to the Landlord by
          reason of a Compulsory Purchase or insurance proceeds payable by
          reason of a Casualty whether pursuant to a judgment or by agreement or
          otherwise, less any reasonable expenses incurred by the Landlord in
          collecting such award or proceeds.

     3.40 OFAC means the Office of Foreign Asset Control of the Department of
          the Treasury, codified at 31 C.F.R. Part 500 as defined in Clause
          10.6.6.

     3.41 OUTGOINGS means all existing and future rates, taxes (such as local
          real estate taxes), fees, charges, assessments, impositions and
          outgoings whatsoever, and all other expenses referring to or in
          relation to the maintenance, operation or management of the Premises,
          including, but not limited to, all rents and charges for water, sewer,
          utility and communication services relating to any of the Premises,
          including all costs and expenses listed in Section 2 Operating Cost
          Order ("Section 2 Betriebskostenverordnung") as well as costs and
          expenses for running, cleaning and maintenance of windows, window
          panes, fronts and exterior of the building, garage doors, technical
          admission systems, e.g. code card systems or other electronic systems,
          ventilation and air conditioning equipment, elevators and escalators,
          any interior or exterior pipes especially gas or water pipes, leads,
          wires, power circuits, ducts, taps, telephone and communication
          systems, heating systems, security systems, fire detectors, emergency
          power units, generators, air and water cleaning filters, snow and ice
          removal, street sweeping and street cleaning, roof maintenance and
          repair, costs, for administration and administrative personal,
          security surveillance measures, lighting of the building, labeling of
          the building by exterior signs and all other public charges whether of
          a like or different nature, even if unforeseen or extraordinary in so
          far as they are reasonable and would be incurred by a reasonable and
          prudent property owner making such payments itself.

     3.42 OUTSTANDING AMOUNT means the sum of any amount payable by the Tenant
          (including but not limited to the Basic Rent and the Outgoings) which
          is past due under this Lease and which is unpaid and all Basic Rent
          and Outgoings that would otherwise be paid in the future under the
          remainder of the Lease Term should the Lease terminate earlier than
          specified under this Lease Agreement.

     3.43 PARTIAL COMPULSORY PURCHASE shall mean any Compulsory Purchase which
          relates to a non-material part(s) of the Premises.

     3.44 PERMITTED USE means industrial and manufacturing (except for metal
          foundry) and other related activities, such as office use, to the
          extent permitted by Law or otherwise in accordance with Clause 10.5.1
          of this Agreement.

                                      -8-

<PAGE>

     3.45 PERSON means an individual, legal person or other entity having no
          legal personality under the Law.

     3.46 POST CLOSING OBLIGATIONS shall mean the Post Closing Obligations
          defined in Clause 13.1.

     3.47 PREMISES means the Premises defined in Clause 1.2.

     3.48 PURCHASE AND SALE AGREEMENT means the Purchase and Sale Agreement by
          and between Landlord, as purchaser, and Tenant and Wagon Automotive
          GmbH, as seller, with respect to the Premises notarized on _____
          _________ 2008 by Dr. Peter Schmite, notary public, in Cologne,
          Germany.

     3.49 REINSTATEMENT VALUE shall mean the amount which would need to be spent
          in order to fully reinstate the Premises to its previous physical
          condition (including the Premises' structure and the Fixtures,
          excluding the personal property of the Tenant used in the operation of
          its business (e.g. racking) within the Premises and any elements of a
          decorative nature), the physical condition of which complies with this
          Lease, in the event that the Premises are entirely destroyed, provided
          that such amount shall be subject to adjustments within the Term
          following changes to applicable market prices (e.g. to reflect an
          increase in the prices of construction materials); this amount should
          also include the costs of demolition and site clearance, temporary
          works, compliance with local authority requirements in connection with
          any works of repair or reinstatement, architects', surveyors' and
          other professional fees and other incidental expenses, and in each
          case with due allowance for VAT, customs duty and other public
          charges.

     3.50 REMAINING PREMISES means the Remaining Premises defined in Clause
          10.16(iii).

     3.51 RENEWAL DATE means the Renewal Date defined in Clause 5.2.

     3.52 RENEWAL TERM means the Renewal Term defined in Clause 5.2.

     3.53 RENT means Basic Rent, VAT, Outgoings and any other amount payable by
          Tenant to Landlord under the terms of this Lease.

     3.54 RENT ADJUSTMENT means an adjustment of Basic Rent in accordance with
          the provisions of SCHEDULE 2.

     3.55 RENT ADJUSTMENT DATE(S) are as described in SCHEDULE 2.

     3.56 RENT PAYMENT DATE means (a) with respect to each payment of Basic Rent
          the fifth (5th) Working Day of each February (covering the calendar
          months of February, March and April), May (covering the calendar
          months of May, June and July), August (covering the calendar months of
          August, September and October), and November (covering the calendar
          months of November, December and January) during the Term, and (b)
          with respect to any payment of Outgoings which are payable to the
          Landlord (as opposed to a third Person) within thirty (30) days
          following receipt of an Invoice and if such date is not a Working Day
          then it will be payable on the immediately preceding Working Day.

     3.57 REQUISITE NOTICE means a notice to the Tenant, forty-eight (48) hours
          before any entry is made on any Premises provided that in the case of
          an emergency no notice will be required.

                                      -9-

<PAGE>

     3.58 REQUISITION shall mean any temporary requisition or confiscation of
          the use or occupancy of any portion of the Premises by any
          governmental authority, civil or military, whether pursuant to an
          agreement with such governmental authority in settlement of or under
          threat of any such requisition or confiscation, or otherwise.

     3.59 RESTORATION FUND means the Restoration Fund as defined in Clause
          10.17.2.

     3.60 SECURITY DEPOSIT means a Security Deposit as defined in Clause 11.1.

     3.61 SUBLET SECURITY DEPOSIT means a Sublet Security Deposit as defined in
          Clause 10.5.2.

     3.62 TENANT includes the Tenant and the Tenant's successors and/or assigns
          in title which are permitted by the terms of this Lease.

     3.63 TENANT GROUP means Guarantor and Tenant and their respective
          subsidiaries if and for so long as each such Person shall be part of
          the group for the purpose of reporting financial positions and results
          on a consolidated basis.

     3.64 TERM means Term as defined in Clause 5.1.

     3.65 TERMINATION AMOUNT means Termination Amount as defined in Clause
          9.2.8.

     3.66 TERMINATION DATE means the date of expiration or earlier termination
          of the Term.

     3.67 TERMINATION EVENT means Termination Event as defined in Clause 9.2.8.

     3.68 TERMINATION NOTICE means Termination Notice as defined in Clause
          9.2.8.

     3.69 UNDERLET PREMISES shall have the meaning given to it in Clause
          10.6.3(i).

     3.70 VAT means value added or similar tax which is payable by the Landlord
          on the Basic Rent, Outgoings (if applicable) or any other amount due
          from Tenant under the terms of this Lease.

     3.71 WALDASCHAFF LEASE shall mean that certain lease agreement by and
          between Landlord and Tenant with respect to a property located at
          Fabrikstrasse 6, 63857, Waldaschaff, Germany dated as of the date
          hereof.

     3.72 WORKING DAY means any day excluding Saturdays, Sundays and national
          holidays recognised by the laws of the Republic of Germany.

4    INTERPRETATION

     In this Lease:

     4.1  Where any act is prohibited, the Tenant will not allow or suffer such
          act to be done by someone under the Tenant's direction or control
          (which shall include any subtenant or assignee).

     4.2  The Clause headings (except for the definitions) are for ease of
          reference and shall not affect the interpretation or meaning of this
          Lease.

     4.3  References to Clause numbers or schedules or paragraphs in schedules
          mean the Clauses of or schedules to or paragraphs in schedules to this
          Lease.

                                      -10-

<PAGE>

     4.4  Words importing persons shall be construed as including firms,
          companies and corporations and vice versa.

     4.5  Words importing one gender will be construed as importing any other
          gender.

     4.6  Words importing the singular will be construed as importing the plural
          and vice versa.

     4.7  The words "hereof", "hereunder", "hereto", "herein", and similar words
          shall be construed as being references to this Agreement.

5    LEASE TERM

     5.1  The initial term of this Lease for the Premises shall be for a period
          of one hundred eighty (180) months (said initial term, as extended by
          any Renewal Term, the "TERM"), commencing on the Commencement Date.

     5.2  Provided that if, on or prior to the date upon which the Term is
          scheduled to expire (the "EXPIRATION DATE") or any other Renewal Date
          (as hereinafter defined) this Lease shall not have been terminated
          pursuant to any provision hereof, then on the Expiration Date and on
          the fifth (5th) anniversary of the Expiration Date (the Expiration
          Date and each such anniversary being referred to herein as a "RENEWAL
          DATE"), Tenant shall have the right to extend the Term (each such
          extension, a "RENEWAL TERM") for an additional period of five (5)
          years with respect to each Renewal Term, notification to Landlord in
          writing at least twelve (12) months (the "RENEWAL NOTICE DATE") prior
          to the next Renewal Date that Tenant is extending this Lease as of the
          next Renewal Date (each such notice, a "RENEWAL NOTICE"). If Tenant
          elects to not send a Renewal Notice to Landlord, Tenant shall have the
          right to extend the then current Term by a period of up to six (6)
          months by giving to Landlord a written notice of such extension at
          least twelve (12) months prior to the expiration of the then current
          Term, which notice shall specify the length of such extension of the
          Term (not to exceed six (6) months). Any extension of the Term shall
          be subject to all of the provisions of this Lease, as the same may be
          amended, supplemented or modified (except that Tenant shall not have
          the right to any additional Renewal Terms). An extension of this Lease
          according to Section 545 German Civil Code due to continued usage of
          the Premises by Tenant is specifically excluded.

     5.3  Except as otherwise expressly provided herein, Tenant shall have no
          right and hereby waives all rights which it may have under any Law (i)
          to quit, terminate or surrender this Lease or any of the Premises,
          save for Tenant's right to terminate this Lease for cause ("AUS
          WICHTIGEM GRUND") including, but not limited to, Sections 543 and 578
          of the German Civil Code, or (ii) to any set-off of any Rent, unless
          such amounts claimed by Tenant are not disputed by Landlord or have
          been confirmed in a non-appealable judgment.

6    TRANSFER OF POSSESSION

     6.1  The Tenant shall be entitled to take possession of the Premises as of
          the Commencement Date.

     6.2  The Tenant is aware of and hereby acknowledges that there may be legal
          defects, and construction and environmental defects relating to the
          Premises. The Tenant shall have no claims against Landlord with
          respect to any defects now or hereafter existing.

                                      -11-

<PAGE>

     6.3  As of the Commencement Date, in addition to Tenant's obligations under
          Section 10.2 and elsewhere under this Lease, the Tenant shall have the
          general duty to maintain safety (Verkehrssicherungspflicht).

7    RENT

     7.1  The Tenant covenants and agrees that it shall be responsible for the
          payment of the Basic Rent annually and proportionately for any
          fraction of a Lease Year from and including the Commencement Date and
          from and including the Rent Adjustment Date such other Basic Rent as
          may become payable under the provisions of SCHEDULE 2. Following the
          first rent payment on the Commencement Date (with respect to the
          period defined in the next sentence below), the Basic Rent shall be
          divided into four (4) equal portions and each portion will be paid
          quarterly in advance on each Rent Payment Date in every Lease Year.
          The first (1st) rent payment shall be made on the Commencement Date
          and to be in respect of the period from and including the Commencement
          Date to and including the Working Day immediately preceding the next
          following Rent Payment Date calculated on a daily basis.

     7.2  From and including the Commencement Date, the Tenant shall pay all
          Outgoings, VAT and any and all other taxes or sums whatsoever as
          become payable or refundable by the Tenant to the Landlord under the
          provisions of Clause 10.9 of this Lease.

     7.3  The Tenant shall, if possible, ensure that direct contractual
          relationships are established between the Tenant and the contractor
          for the services included in the Outgoings. If direct contractual
          relationships between the Tenant and a contractor cannot be
          established, the Landlord shall direct all such contractors to account
          on a monthly basis directly to Tenant (or shall provide copies on a
          monthly basis of any such accounting statements provided by such
          contractor to Landlord together with the applicable statement),
          payment of which shall be made by Tenant to the applicable contractor
          within thirty (30) days following receipt of an Invoice from Landlord
          or contractor, as applicable.

     7.4  If required by the Landlord, the Tenant shall pay the Basic Rent
          reserved by Clause 7.1 and VAT by wire transfer or banker's standing
          order to a bank account or bank accounts (but not more than two (2))
          either in Germany or another country which the Landlord has notified
          in writing to the Tenant. If Landlord requires Basic Rent and VAT to
          be paid to a bank account located outside of Germany and the cost to
          wire transfer Basic Rent and VAT to such account exceeds the cost to
          wire transfer such funds to an account in Germany, then such excess
          cost shall be borne by Landlord.

     7.5  Any payments from the Tenant to the Landlord under this Lease
          (including the payment of the Basic Rent) shall be made against
          Invoices issued by the Landlord to the Tenant.

8    VAT

     8.1  In accordance with Sec. 9 of the German VAT Act ("Umsatzsteuergesetz")
          the Landlord has elected to waive the VAT exemption within the meaning
          of Sec. 4 No. 12a of the German VAT Act. The Tenant is aware of the
          fact that this requires the Landlord to use the Premises solely in its
          capacity as entrepreneur and for the purpose of creating turn-over
          that does not exclude pre-tax deduction and that in case of any
          sub-leasing of the Premises of any part

                                      -12-

<PAGE>

          thereof, the Tenant elects for VAT and agrees to impose the
          aforementioned obligations on any possible sub-tenant by way of a
          contract for the benefit of the Landlord (echter Vertrag zugunsten des
          Vermieters).

          8.1.1 If the Landlord's conditions for opting for VAT are inapplicable
               because the Tenant or any sub-tenant is not using the property in
               accordance with the principles in Clause 8.1 above, Tenant will
               indemnify Landlord for any cost arising out of this event, and
               will in particular (i) reimburse Landlord for any VAT correction
               amount which is payable by Landlord pursuant Sec. 15a VAT Act (or
               under any of its successor statutes) because of this event and
               (ii) bear any VAT owed by Landlord pursuant Sec. 14c VAT Act (or
               under any of its successor statutes). Further rights of the
               Landlord shall remain unaffected hereof.

          8.1.2 The Tenant is aware of the Landlord's obligation to prove the
               observation of the requirements of Sec. 9 ss. 1, 2 of the German
               VAT Act to the financial authorities and therefore undertakes, on
               request and without undue delay, to provide the Landlord with
               documentation and to make representations enabling the Landlord
               to comply with his obligations to report to financial authorities
               under Sec. 90 ss. 2 sentence 2 of the German VAT Act. Moreover,
               the Tenant shall be obligated to inform the Landlord promptly of
               any events that could affect VAT opting.

          8.1.3 The Landlord's claims against the Tenant according to this
               Clause 8.1 shall not become time-barred prior to expiry of any
               six (6) months period, starting upon receipt by the Landlord of
               the relevant tax assessment notices. In case the Tenant or any
               sub-tenant does not comply with the duty to provide information
               according to Cause 8.1.2, the limitation period with respect to
               all claims arising from the Tenant or such sub-tenants' failures
               to provide information shall extend to ten (10) years.

     8.2  Each payment of Basic Rent, the Outgoings and other amounts provided
          for under this Lease shall be subject to VAT on such payment. To the
          extent that any Basic Rent, the Outgoings and other amounts provided
          for under this Lease is subject to VAT under any applicable VAT
          provision, the Tenant shall pay such VAT imposed on any Basic Rent,
          the Outgoings and other amounts provided for under this Lease at the
          applicable rate in addition to any such Basic Rent, Outgoings and
          other amounts payable by Tenant under this Lease.

     8.3  Tenant shall make all VAT payments arising from Tenant's obligations
          under this Lease as and when due, at the option of Landlord, (i)
          directly to the appropriate taxing authority and will provide Landlord
          evidenced of such payment within thirty (30) days after the due date
          thereof, or (ii) to Landlord's designated account. If (x) an
          overpayment by Tenant of VAT due on this Lease occurs and (y) a claim
          against the German tax authorities for reimbursement of such
          overpayment of VAT due on this Lease may only be asserted by Landlord,
          then promptly after written request, and with Tenant's cooperation,
          Landlord shall assert such claim against the German tax authorities
          for reimbursement of such overpayment of VAT due on this Lease and,
          upon receipt of reimbursement of such claim from the German tax
          authorities, shall remit such reimbursement to Tenant. All costs
          reasonably and necessarily incurred by Landlord with respect to the
          preparation, review or

                                      -13-

<PAGE>

          filing of any VAT returns shall be paid by Tenant excluding costs for
          Landlord's own employees and resources.

     8.4  Landlord shall, upon receipt of written request of Tenant, provide
          Tenant with invoices satisfying the formal requirements of Section 14
          of the German VAT Act with respect to the Basic Rent due under this
          Lease. Landlord's costs of preparing and/or reviewing such invoices
          shall be paid by Tenant.

9    INSURANCE

     9.1  The Tenant shall:

          9.1.1 insure the Premises, pay the Insurance Premiums and maintain the
               following insurance against:

               (i)  loss or damage by fire, explosion, storm, tempest (including
                    lightning), flood, earthquake, burst pipes, impact, heave,
                    subsidence and (in peacetime) aircraft and articles dropped
                    there from, riot, civil commotion and malicious damage
                    impact by road vehicle for their full Reinstatement Value in
                    the name of the Tenant with the Landlord as additional
                    insured and Loss Payee as their interests may appear and the
                    Lender as additional insured and First Loss Payee as their
                    interests may appear;

               (ii) the loss of rent payable under this Lease from time to time
                    (having regard to the review of Basic Rent which may become
                    due under this Lease) equal to twenty four (24) months of
                    Basic Rent or such longer period as the Landlord and the
                    Tenant may from time to time agree to in writing as being
                    sufficient or for the purposes of planning and carrying out
                    any reinstatement of the Premises following a Casualty in
                    the name of the Tenant with the Landlord as additional
                    insured and Loss Payee as their interests may appear and the
                    Lender as additional insured and First Loss Payee as their
                    interests may appear;

               (iii) third party liability arising out of or in connection with
                    any matters involving or relating to the Premises in an
                    amount satisfactory to the Landlord, acting reasonably which
                    is in line with insurance usually effected by a prudent
                    owner of a property being of a similar nature to the
                    Premises and naming the Landlord and the Lender as
                    additional insured; and

               (iv) such other insurance coverage as the Landlord shall
                    reasonably request which is applicable to commercial
                    properties and constitutes a risk and an amount that it is
                    usual business practice to insure against in Germany;

               (jointly referred as the "INSURED RISKS").

          9.1.2 The Tenant will procure at all times that all insurance policies
               contain:

               (i)  a clause whereby such insurance policy will not be vitiated
                    or avoided as against a Mortgagee in the event or as a
                    result of any misrepresentation,

                                      -14-

<PAGE>

                    act or neglect or failure to make disclosure on the part of
                    the insured party or any circumstances beyond the control of
                    any insured party; and

               (ii) terms prohibiting the insurer from vitiating or avoiding any
                    insurance policy as against a Mortgagee in the event of any
                    misrepresentation, act or neglect or failure to make full
                    disclosure on the part of the Landlord, the Tenant or other
                    insured party and a waiver of all rights of subrogation.

          9.1.3 ensure that the insurer has a claims paying ability rating of at
               least AA- given by Standard & Poor's Rating Services, a Division
               of MacGraw Hill Companies, Inc. or an equivalent rating by
               Moody's Investment Services and is authorised to write insurance
               in Germany, or, if the insurer does not possess such rating,
               ensure that the insurer is reputable, authorized to write
               insurance in Germany and reasonably acceptable to Landlord;

          9.1.4 at least thirty (30) days prior to modifying or replacing any
               insurance required under Clause 9.1.1 provide the Landlord with
               details of the proposed insurance, the form of policy, details of
               the insurer, any excesses and deductible exclusions and
               limitations under the policy, details of the full Reinstatement
               Value including all professional fees, and details of all other
               amounts insured under the policy. The Landlord's approval for
               modifying or replacing any insurance is required if terms of the
               insurance are different than set out under this Clause 9 or if
               any deductible is increased. If the Landlord's approval is
               required, the Tenant shall have the right to renew, modify or
               replace the insurance policy, if such approval has been granted
               in writing. The approval or disapproval should be issued by the
               Landlord acting reasonably within fourteen (14) days, counting
               from the day on which the Tenant proposed to the Landlord the
               full details of the insurance;

          9.1.5 comply with the requirements of the insurers relating to the
               Premises;

          9.1.6 promptly, but in any event within three (3) days of the
               occurrence, give the Landlord written notice of any material
               damage to or destruction of the Premises;

          9.1.7 pay the Landlord within ten (10) days of demand the reasonable
               costs incurred by the Landlord in connection with any insurance
               claim relating to the Premises arising from any insurance taken
               out by the Landlord pursuant to Clause 9.3, including, but not
               limited to, deductibles, reasonable legal fees, and costs of
               Landlord's construction consultant.

          9.1.8 notify the Landlord immediately if the Tenant, undertenant, or
               any other lawful occupier vacates the Premises; and

          9.1.9 provide to Landlord and to the Lender certified copies of
               policies (or any substitute documents issued by the insurance
               company) and receipts with respect to the payment of premium
               within thirty (30) days following the commencement or renewal
               date of the insurance.

          9.1.10 Undertake all reasonable endeavours to cause each insurer
               carrier to issue a certificate of third party interest in the
               insurance (Sicherungsbestatigung / Sicherungsschein) in favour of
               Lender confirming that the legal provisions set out

                                      -15-

<PAGE>

               in sections 94 and 142 to 149 of the German Insurance Contract
               Act (Versicherungsvertragsgesetz) apply to all kinds of property
               insurances.

     9.2  Reinstatement

          9.2.1 If any part of any Premises is damaged by any of the Insured
               Risks then,

               (i) If the provisions of Clause 10.17.1 apply, the Tenant shall
               apply the net Award (except those amounts relating to fees and
               Rent) towards reinstating the Premises and Tenant shall be
               responsible for any short-fall.

               (ii) If the provisions of Clause 10.17.2 apply, upon receipt of
               the Net Award by the Landlord, Landlord shall make the Net Award
               available to the Tenant in accordance with Clause 10.17.2 for
               reinstating the Premises.

          9.2.2 The Tenant shall be obliged to arrange for the performance of
               construction work aimed at reinstating the Premises. The detailed
               scope and the schedule for the works will be subject to the
               Landlord's approval, which approval shall not be unreasonably
               withheld or delayed and subject to the requirements of the
               insurers. The Tenant shall ensure that a contractor carrying out
               any reinstatement works grants a construction quality guarantee
               (Gewahrleistungsburgschaft) (as to the performed reinstatement
               works) for the joint benefit of the Landlord and the Tenant or be
               assigned to the Landlord.

          9.2.3 If the payment of any insurance monies is refused for any reason
               other than a default by Landlord under this Lease, the Tenant
               will pay to the Landlord within fourteen (14) days of demand the
               amount so refused. The monies paid by the Tenant to the Landlord
               shall be made available to Tenant in accordance with Clause
               9.2.1(ii).

          9.2.4 The Landlord will not be obliged to comply with the obligations
               under Clause 9.2.1(ii) if payment of the insurance monies has
               been refused in whole or in part by reason of any act or default
               of the Tenant or anyone under its control or the Tenant has not
               complied with its obligations in Clauses 9.2.2 and 9.2.3.

          9.2.5 For the avoidance of doubt, nothing in this Lease imposes an
               obligation on the Landlord at any time, for any reason, to
               reinstate or repair the damaged Premises.

          9.2.6 Tenant shall be obligated to restore the Premises as close as
               possible to its value, condition and character immediately prior
               to a Casualty (assuming the Premises to have been in the
               condition required by this Lease), provided, however, that the
               Tenant is not obliged to reinstate damage from a total or
               substantial Casualty at the Premises caused by an Insured Risk
               if,

               (i)  it cannot obtain every necessary consent under applicable
                    laws; or

               (ii) a necessary legislative consent is granted subject to a
                    lawful condition and it would be unreasonable financial
                    burden to expect the Tenant to comply with that condition;
                    or

                                      -16-

<PAGE>

               (iii) the planning authority insists that as a precondition to
                    giving necessary legislative consent the Tenant must enter
                    into an agreement with the authority containing a term where
                    it would be unreasonable financial burden to expect the
                    Tenant to comply with that term; or

               (iv) it is prevented from reinstating by another reason outside
                    the Tenant's control

               but, if Tenant does not elect to reinstate, it must give to
               Landlord a Termination Notice within the time period set forth in
               Clause 9.2.8 below.

          9.2.7 The Tenant may so reinstate the Premises in a different form to
               that existing before the damage occurred where the variation:

               (i)  is required either by the Insurers or to comply with a
                    legislative requirement; or

               (ii) reflects good building practice then current; or

               (iii) is reasonably required by the Tenant for some other reason,

               but any such variation must (a) be approved in writing by
               Landlord and Lender, such approval not to be unreasonably
               withheld or delayed and subject to the requirements of the
               insurers, and (b) not make the Premises materially different in
               size or less valuable than it was before the damage occurred.

          9.2.8 In the event that Tenant does not elect to reinstate pursuant to
               Clause 9.2.6 (such an event, a "TERMINATION EVENT"), then, Tenant
               shall give to Landlord a Termination Notice (as defined below)
               provided, that a Termination Notice must not be given more than
               three (3) months following the date of the applicable Casualty,
               provided, however, if, notwithstanding the diligent efforts of
               Tenant, Tenant only first discovers after the expiration of such
               three (3) month period that Clause 9.2.6 applies and, as a
               result, Tenant does not wish to reinstate, then, the Termination
               Notice may be given up to thirty (30) days after such discovery,
               but in no event later than twelve (12) months following the date
               of the applicable Casualty. As used herein, the term "TERMINATION
               NOTICE" shall mean a written notice from Tenant to Landlord
               whereby Tenant (i) requests that the Lease be terminated, (ii)
               confirms that Landlord is entitled to retain the entire Net
               Award, (iii) irrevocably commits to pay to Landlord the positive
               difference, if any, between the Net Award received by Landlord
               and the applicable Acquisition Cost less the value of the land
               (the "TERMINATION AMOUNT") in order to cause Landlord to be paid
               an amount in total that is not less than the applicable
               Acquisition Cost less the value of the land.

          9.2.9 If Tenant gives Landlord a Termination Notice as a result of a
               Termination Event, then, upon receipt by Landlord of and the
               Termination Amount (a) Tenant shall have no further liability to
               Landlord, and (b) this Lease will terminate. Tenant shall cause
               Landlord to be paid the Termination Amount within four (4) months
               of the date of the applicable Casualty.

     9.3  Landlord's insurance

                                      -17-

<PAGE>

          9.3.1 If the Tenant fails to provide insurance complying with Clause
               9.1, the Landlord may effect and maintain reasonable insurance of
               the Premises within the same scope and the Tenant shall pay to
               the Landlord within twenty (20) days of written demand the cost
               to the Landlord of effecting such insurance.

          9.3.2 Immediately upon the Landlord giving written notice to the
               Tenant that the Landlord has insured the Premises in accordance
               with Clause 9.3.1 against any of the Insured Risks, the Tenant
               shall not maintain or take out any insurance of the Premises for
               such risks in its own name without the prior approval of
               Landlord, which approval shall not be unreasonably withheld.

          9.3.3 The Net Award shall be made available to Tenant for
               reinstatement of the Premises in accordance with the terms of
               this Lease.

     9.4  The obligation to pay the Basic Rent and the Outgoings continues in
          spite of the occurrence of any damages to the Premises. The Basic Rent
          and the Outgoings payable to the Landlord shall be decreased by the
          amounts received under the rent loss insurance carried by Tenant
          pursuant to clause 9.1.1(ii) and paid to the Landlord.

10   TENANT'S OBLIGATIONS

     The Tenant covenants with the Landlord:

     10.1 Rent and Other Payments

          To pay the Basic Rent, the Outgoings and other amounts provided for
          under this Lease without any deductions or set-off except as
          specifically provided in this Lease; in the event that any amount is
          not paid when due under this Lease, the Tenant shall be required to
          pay the Interest on any amounts unpaid when due.

          The payments of the Basic Rent shall be decreased up to the amounts
          paid to the Landlord by the insurer in respect to such Basic Rent
          following Casualty.

     10.2 Repair and Replacement

          10.2.1 At all times to maintain ("instandhalten") and repair or if
               necessary to replace parts of the Premises (including roof and
               structure (Dach und Fach), mechanical and electrical
               installations and equipments) and to keep the Premises (including
               any part not built upon) in good and substantial repair and
               condition (ordinary tear and wear excepted) and to yield up the
               same at the Termination Date in accordance with the covenants by
               the Tenant contained in this Lease (ordinary wear and tear
               excepted). For the avoidance of doubt, the Tenant shall be
               responsible for any and all repairs to or on the Premises
               (including all structural and other major repairs) and the
               Landlord has no liability in this respect.

          10.2.2 To keep the Premises in a clean and tidy condition and properly
               cleansed and free from obstruction.

          10.2.3 To comply with the terms of all warranties, guarantees or
               similar documents which apply to all or any part of the Premises.

                                      -18-

<PAGE>

          10.2.4 To repair or replace forthwith by articles of similar kind and
               quality and at its own expense any Fixtures (other than the
               Tenant's or trade fixtures and fittings) in/on the Premises which
               shall become in need of repair or replacement (ordinary tear and
               wear excepted). Replacement within the meaning of the
               aforementioned sentence shall mean acquisition of assets and
               equipment which a reasonable, economically thinking facility
               manager would not repair, taking into account service life,
               severity of damages in relation to costs of repair in line with a
               long term lease agreement.

          10.2.5 To keep any part of the Premises which may not be built upon,
               adequately surfaced, in good condition, and swept clean and all
               landscaped areas properly cultivated and free from weeds and to
               ensure all grassed areas are mown and all parking spaces
               adequately cleared of obstructions or vegetation and with a
               maintained surface and free from ice and snow as and when
               necessary so that the same shall have a neat and tidy appearance
               at all times.

          10.2.6 Any disagreement between the Parties with regards to the
               Tenant's obligations with respect to repair, replacement,
               maintenance or any other technical matter shall be finally
               settled by a third party professional consultant to be appointed
               by the Landlord and the Tenant jointly. Should the Parties fail
               to agree on the appointment of a professional consultant, the
               President of the local Chamber of Commerce shall be asked to
               appoint a reputable consultant who shall be instructed to issue a
               written opinion as to the dispute, which shall bind the Parties.
               The consultant's fee shall be paid by the Party that loses the
               dispute.

          10.2.7 Except with respect to the Post Closing Obligations, nothing
               contained, mentioned or referred to in this Lease shall require
               Tenant to put or keep the Premises in any better state of repair
               or condition than the condition described in the Property
               Condition Report prepared by Colliers CRE and dated March 28,
               2008, a copy of which is attached hereto as SCHEDULE 7.

     10.3 Alterations and Additions

          10.3.1 Tenant shall have the right, without having obtained the prior
               written consent of Landlord and provided that no Event of Default
               then exists, (i) to make non-structural Alterations or Additions
               or a series of related non-structural Alterations or Additions
               that, as to any such Alterations or Additions or series of
               related Alterations or Additions, do not cost in excess of
               E500,000 and (ii) to install Fixtures in the Improvements or
               accessions to the Fixtures that, as to such Fixtures or
               accessions, do not cost in excess of E500,000, so long as at the
               time of construction or installation of any such Fixtures or
               Alterations or Additions no Event of Default exists and the value
               and utility of the Premises is not diminished thereby (i.e. such
               Fixtures, Alterations or Additions are of a quality and of a
               nature comparable to the better of the quality and nature of the
               Improvements and Fixtures in existence (a) as of the Commencement
               Date or (b) immediately prior to such construction or
               installation of Fixtures, Alterations or Additions). If the cost
               of any non-structural Alterations or Additions, series of related
               non-structural Alterations or Additions, Fixtures or accessions
               thereto is in excess of E500,000 or if Tenant desires to make
               structural Alterations or Additions, the prior

                                      -19-

<PAGE>

               written approval of Landlord shall be required, which approval
               shall not, subject to the approval of Lender, be unreasonably
               withheld. Landlord shall either approve or disapprove such
               proposed Alterations, Additions or Fixtures within thirty (30)
               days of receipt by Landlord of all documentation reasonably
               required by Landlord with respect to such Alterations, Additions
               or Fixtures. Tenant shall not construct upon the Land any
               additional buildings without having first obtained the prior
               written consent of Landlord which approval shall not, subject to
               the approval of Lender, be unreasonably withheld. Landlord shall
               not have the right to require Tenant to remove any Alterations or
               Additions.

          10.3.2 If Tenant desires to make any Alterations pursuant to this
               Clause 10.3 or as required by Clauses 10.2, 10.8 or 10.17 (such
               Alterations or Additions and actions being hereinafter
               collectively referred to as "Work"), then (i) the market value of
               the Premises shall not be lessened by any such Work or its
               usefulness impaired, (ii) all such Work shall be performed by
               Tenant in a good and workmanlike manner, (iii) all such Work
               shall be expeditiously completed in compliance with all Laws,
               (iv) all such Work shall comply with the requirements of all
               insurance policies required to be maintained by Tenant hereunder,
               (v) if any such Work involves the replacement of Fixtures or
               parts thereto, all replacement Fixtures or parts shall have a
               value and useful life equal to the greater of (A) the value and
               useful life on the date hereof of the Fixtures being replaced or
               (B) the value and useful life of the Fixtures being replaced
               immediately prior to the occurrence of the event which required
               its replacement (assuming such replaced Fixtures was then in the
               condition required by this Lease), (vi) Tenant shall promptly
               discharge or remove all liens filed against any of the Premises
               arising out of such Work within thirty (30) days of the filing
               thereof, (vii) Tenant shall procure and pay for all permits and
               licenses required in connection with any such Work, (viii) all
               such Work shall be the property of Landlord and shall be subject
               to this Lease, and Tenant shall execute and deliver to Landlord
               any document requested by Landlord evidencing the assignment to
               Landlord of all estate, right, title and interest (other than the
               leasehold estate created hereby) of Tenant or any other Person
               thereto or therein, and (ix) Tenant shall comply, to the extent
               requested by Landlord or required by this Lease, with the
               provisions of Clause 10.17, whether or not such Work involves
               restoration of the Premises.

          10.3.3 The Tenant shall not be entitled to make any Alterations or
               Additions to any part of the Premises if a building permit is
               required for making such Alterations and Additions, unless
               written consent from the Landlord is received, which consent
               shall not be unreasonably withheld.

          10.3.4 If the Tenant makes any Alterations or Additions to the
               Premises in breach of this Clause 10.3 then, in addition to any
               other remedies and powers available to the Landlord (and without
               prejudice to them) the Landlord may remove and reinstate such
               Additions or Alterations and the proper cost of carrying out such
               work will be repaid to the Landlord by the Tenant within fourteen
               (14) days of demand.

          10.3.5 The Tenant will not receive any compensation or reimbursement
               of expenses incurred in connection with installing any
               Alterations or Additions or

                                      -20-

<PAGE>

               improvements to the Premises, regardless of the whether the
               Tenant removes them from the Premises or is instructed not to do
               so by the Landlord.

     10.4 Signs and reletting notices

          At the end of the Term, to remove any signs at the Premises and make
          good any damage caused by that removal to the reasonable satisfaction
          of the Landlord (ordinary tear and wear excepted).

     10.5 Use, Occupancy

          10.5.1 Not to use the Premises except for any use falling within the
               Permitted Use except as the Landlord may first approve in
               writing.

          10.5.2 In the event that the premises are vacant the Tenant is (i) to
               fully comply with its obligations under this Lease including all
               maintenance and repair obligations and is to provide for
               continuous twenty-four (24) hour on-site security at the
               Premises, (ii) to actively, continuously and diligently marketing
               the Premises for sublet and (iii) to deliver the Landlord an
               additional Security Deposit (a "SUBLET SECURITY DEPOSIT") that
               complies with the requirements of Article 11 and is equal to
               three (3) months of the Basic Rent then in effect.

     10.6 Alienation

          10.6.1 (i) Not to assign this Lease or charge the Premises or any part
               thereof during the initial Term of this Lease without the prior
               written consent of the Landlord, which consent shall not be
               unreasonably withheld or delayed provided that Tenant shall have
               no right to assign this Lease if an Event of Default occurs and
               is continuing. Notwithstanding the forgoing, so long as no Event
               of Default then exists, Tenant shall have the right to assign
               this Lease to a new tenant if (i) the proposed new tenant has,
               immediately following such assignment and giving effect thereto,
               publicly rated debt of "BB-" or better from Standard & Poor's
               ("S&P") Corporation or "Ba3" or better from Moody's Investor
               Services, Inc. or, if such prospective tenant does not have rated
               debt, a net worth calculated in accordance with IAS consistently
               applied of not less than Two Hundred Million Euros (E200,000,000)
               (a Person meeting such tests, a "CREDIT ENTITY"), or (ii) the
               proposed new tenant provides a new guarantee identical in all
               material respect to the Guarantee from a guarantor that,
               immediately following such assignment and giving effect thereto,
               is a Credit Entity, or (iii) the proposed new tenant is an
               Affiliate of Tenant provided that such new tenant remains an
               Affiliate of Tenant for the balance of the Term.

               (ii) As a condition precedent to any assignment of this Lease,
               Tenant shall conclude a tri-party agreement with the proposed
               assignee and Landlord (who shall be obliged to enter into such
               agreement with respect to an assignment permitted pursuant to
               Clause 10.6.1(i) above) at the time of such assignment. Such
               tri-party agreement shall be a written document in recordable
               form satisfactory to Landlord specifically observing the
               requirements of a written form as stipulated by Section 550
               German Civil Code, and duly executed by Landlord, Tenant and the
               proposed assignee (the "ASSIGNMENT AGREEMENT") pursuant to which
               (x) such assignee

                                      -21-

<PAGE>

               expressly assumes all the obligations of Tenant hereunder, actual
               or contingent, including obligations of Tenant which may have
               arisen on or prior to date of such assignment, and (y) if, but
               only if, the proposed assignee is an Affiliate of Tenant (where
               the Guarantee given by Guarantor remains in effect) or a Credit
               Entity itself or provides a new guarantee identical in all
               material respects to the Guarantee from a guarantor that,
               immediately following such assignment and giving effect thereto,
               is a Credit Entity, Tenant shall be released from all liabilities
               under this Lease. No assignment shall impose any additional
               obligations on Landlord under this Lease.

          10.6.2 Subleasing

               Without the prior written consent of the Landlord not to sublease
               (or grant the right to use free of charge) in excess of
               twenty-five percent (25%) of the leaseable space of the Premises
               provided that Landlord shall not unreasonably withhold or delay
               its consent to any subleasing in excess of twenty-five percent
               (25%) of the leaseable space of the Premises. In addition, Tenant
               may sublease up to 100% of the leaseable space in the Premises to
               any Affiliate of Tenant without the prior consent of Landlord.

          10.6.3 In connection with any subleasing to notify the Landlord of:
               (i) the identity of the proposed sublessee; and (ii) the proposed
               area to be underlet, prior to the date on which the sublease is
               entered into.

          10.6.4 The Tenant shall procure that any sublease contains:

               (i)  an unqualified covenant on the part of the sublessee with
                    the Tenant that: (A) the sublessee will not assign or
                    encumber (or agree so to do) any part or parts of the
                    Premises (as distinct from the whole) demised by such
                    sublease (the "UNDERLET PREMISES"); (B) the sublessee will
                    not part with or agree to do so or share possession of or
                    permit any person to occupy the whole or any part of the
                    Underlet Premises; and (C) the sublessee will not sublease
                    the whole or any part of the Underlet Premises;

               (ii) an unqualified covenant by the sublessee (under which the
                    Tenant undertakes to use all reasonable endeavours to
                    enforce) to prohibit the sublessee from doing or suffering
                    any act or thing upon or in relation to the Underlet
                    Premises which will contravene any of the Tenant's
                    obligations in this Lease; and

               (iii) a condition for re-entry upon breach of any covenant on the
                    part of the sublessee or any other ground in respect of the
                    sublessee specified in Clause 10.7.

          10.6.5 Not enter into any collateral agreement nor give any side
               letter varying or relieving the sublessee from any terms required
               by Clause 10.6.4 to be contained in the underlease.

          10.6.6 No sublease shall affect or reduce any of the obligations of
               Tenant hereunder, and all such obligations of Tenant shall
               continue in full force and effect as obligations of a principal
               and not as obligations of a guarantor, as if no sublease

                                      -22-

<PAGE>

               had been made. No sublease shall impose any additional
               obligations on Landlord under this Lease.

          10.6.7 In case the Tenant subleases 50% or more of the Premises, the
               Tenant shall assign to Landlord any claims against the
               sub-tenant(s) deriving from the sub-lease, including Tenant's
               statutory lien by way of security. This assignment is limited to
               the amount of Landlord's present and future claims vis-a-vis
               Tenant under this Lease including, but not limited to, the Basic
               Rent, VAT and any Outgoings.

          10.6.8 Notwithstanding any provision in this Clause 10.6 or elsewhere
               in this Lease to the contrary, including any right or option the
               Tenant may have or consent that Tenant may obtain from Landlord
               to assign this Lease or sublease all or any portion of the
               Premises, the Tenant shall, upon the request of the Landlord,
               provide and cause any assignee or sublessee to provide, such
               information (including, without limitation, any certification) as
               to any proposed assignee or sublessee and its principals as may
               be required for the Landlord and the Tenant to comply with
               regulations administered by the Office of Foreign Asset Control
               ("OFAC") of the Department of the Treasury, codified at 31 C.F.R.
               Part 500 (including those named on OFAC's Specially Designated
               and Blocked Persons list) or under any statute, executive order
               (including the 24 September 2001, Executive Order Blocking
               Property and Prohibiting Transactions with Persons Who Commit,
               Threaten to Commit, or Support Terrorism), or other governmental
               action regarding persons or entities with whom U.S. persons or
               entities are restricted from doing business.

     10.7 Entry

          10.7.1 To permit the Landlord and all persons authorised by it, at all
               reasonable times upon the Requisite Notice to enter and remain
               upon the Premises for a reasonable time together with associated
               work people, plant and materials:

               (i)  in order to examine their condition, including environmental
                    testing, and to take schedules of repairs;

               (ii) in order to execute any works of construction, repair,
                    decoration or of any other nature within the Premises or the
                    Fixtures pursuant to Clause 10.7.2;

               (iii) in order to exercise, without interruption or interference,
                    any of the rights granted to or reserved for the Landlord by
                    this Lease; and

               (iv) for any other purpose connected with the interest of the
                    Landlord in the Premises including (but without limitation)
                    for the purpose of valuing or disposing of any interest of
                    the Landlord.

               The Persons so entering the Premises shall rectify any damage
               caused to the Premises as a result of such entry to the
               reasonable satisfaction of Tenant and shall not unreasonably
               interfere with Tenant's proper use of the Premises.

                                      -23-

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          10.7.2 If as a result of an inspection or otherwise the Landlord
               becomes aware of any breaches of the Tenant's obligations under
               this Lease regarding the condition of the Premises, the Landlord
               may give notice in writing thereof to the Tenant. Within one (1)
               month after such notice (or promptly in respect of an emergency
               notice) the Tenant will remedy such breach of covenant in
               accordance with such notice and the covenants contained in this
               Lease. If the Tenant commences the remediation within thirty (30)
               days of such notice (or promptly in case of an emergency) and
               diligently and expeditiously continues to comply with such
               notice), but cannot complete the remediation within such thirty
               (30) days period or such breach may not be reasonably expected to
               be cured within such period of time, then the Tenant shall have
               the right to complete such remediation within ninety (90) days
               from the giving of any such notice. If the remediation is not
               completed within such ninety (90) day period, then the Landlord
               may enter the Premises under this Clause 10.7 and carry out all
               or any of the works referred to in such notice or remedy the
               default of the Tenant. In such circumstances, the Landlord will
               be under no liability to make good any damage whatsoever and all
               proper costs of all such works and all proper expenses incurred
               in remedying such defaults in each case shall be paid by the
               Tenant to the Landlord within thirty (30) days of a written
               demand.

     10.8 Compliance with Law

          10.8.1 To comply with all applicable Law including (but without
               limitation) any planning legislation and regulation or the
               carrying out by the Tenant of any operations on or the use of any
               part of the Premises.

          10.8.2 At the Tenant's expense to obtain from the appropriate
               authorities all licences, consents and permissions as may be
               required for the carrying out by the Tenant of any operations on
               or the use of any part of the Premises.

          10.8.3 Not at any time during the Term to do or permit or suffer
               anything which shall contravene any applicable Law or any
               licences, consents, authorisations, permissions and conditions
               (if any), including, but not limited to, the River License and
               the Water Permit as those terms are defined below, from time to
               time granted or imposed under any applicable Law nor to permit
               anything which would be a contravention thereof and to comply
               with the same and to indemnify the Landlord in respect of such
               acts or omissions.

          10.8.4 Not to make any application for a building permit (including a
               notification with regard to the construction works) without first
               producing a copy of the same and obtaining the prior written
               consent of the Landlord to such application, which consent will
               not be unreasonably withheld or delayed.

          10.8.5 Not at any time during the Term to do permit or suffer on the
               Premises any act or cause or permit to be present on the Premises
               any matter or thing which may cause a loss to the Landlord by
               reason of any Environmental Law.

          10.8.6 Within seven (7) days of its receipt to give copies to the
               Landlord of any notice of default or violation relevant to the
               Premises or relevant to the use thereof given to the Tenant or
               the occupier of the Premises under any applicable Law and to

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               take all necessary steps to comply with such notice insofar as it
               relates to the Tenant's use and occupation of the Premises and
               also at the reasonable request of the Landlord to make or join
               with the Landlord in making such objections and representations
               against or in respect of any such notice, order or proposal, as
               previously mentioned, as the Landlord reasonably requires.

     10.9 Outgoings, costs and fees

          10.9.1 To pay, discharge or to reimburse to the applicable Person (and
               upon written notice from Landlord to Tenant directly to Landlord
               in lieu of the Competent Authority), the Outgoings and other fees
               or charges imposed upon the Premises or upon the Landlord in
               connection with ownership, occupation, or maintenance of the
               Premises or the management by Tenant's manager of the Premises.
               However, nothing herein shall place any obligation on the Tenant
               to pay, discharge, contribute or reimburse the Landlord the
               amounts which represent (i) any management fee to Landlord or to
               any third party management company retained by Landlord, or (ii)
               the Landlord's general corporate and/or income tax or other
               corporate overheads, including the costs incurred by the Landlord
               in operating its business, including, by way of example,
               accounting costs, legal fees and office rental payments.

          10.9.2 In the absence of direct assessment on the Premises, to repay
               to the Landlord the proportion properly attributable to the
               Premises (such proportion to be properly determined by Tenant
               acting reasonably or in case of a dispute by an expert referred
               to in Clause 10.2.7) within fourteen (14) days of demand, all
               Outgoings, especially all charges (together with VAT, if
               applicable) in respect of gas, electricity, steam, soil, water,
               telephone, electrical impulses and other services supplied to or
               consumed in the Premises, including all costs and expenses listed
               in Section 2 Operating Cost Order ("Section 2
               Betriebskostenverordnung"), to the extent that the Landlord has
               paid or is required to pay the same to any third party.

          10.9.3 To pay to the Landlord all proper and reasonable costs, charges
               and expenses (including lawyers costs and fees, other
               professional advisers' costs and fees and bailiffs' commissions)
               properly incurred by the Landlord:

               (i)  in connection with any breach of covenant by or the recovery
                    of arrears of Basic Rent or the Outgoings due from the
                    Tenant under this Lease; and

               (ii) in respect of any application for a building permit whether
                    or not such building permit is granted or the application is
                    withdrawn (unless the Landlord has unreasonably withheld its
                    consent for applying for such permit).

          10.9.4 The Landlord will make a settlement of account of the advances
               for Outgoings and/or charges set out in Clause 7.

          10.9.5 Within five (5) Working Days of receipt by Tenant of any real
               estate tax or real estate assessment invoices with respect to the
               Premises, Tenant shall deliver to

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               Landlord copies of same. Tenant shall provide to Landlord
               evidence of payment of such invoices within five (5)Working Days
               following the applicable due date.

     10.10 Taxes; VAT

          To pay any and all VAT incurred or imposed on any payment made by the
          Tenant under this Lease and to pay any stamp duty, or other fees
          assessed or assessable on this Lease, and to pay or reimburse the
          Landlord for payment of all taxes, charges or fees connected with the
          use and/or ownership of the Land and Improvements (for the avoidance
          of doubt, this does not include any taxes imposed on the Landlord
          regarding its business such as corporate income tax and trade tax of
          Landlord imposed on the net income from the Lease). For the avoidance
          of doubt, unless this Lease provides otherwise, any amounts due under
          this Lease from the Tenant constitute net amounts and will be
          increased by the applicable VAT.

     10.11 General requirements concerning use

          10.11.1 Not to use any part of the Premises for any illegal act or
               purpose and not to commit any unreasonable nuisance or do
               anything which may cause damage or unreasonable disturbance to
               the Landlord or any other person.

     10.12 Indemnity

          10.12.1 The Tenant will fully pay, protect, defend, indemnify and hold
               harmless the Landlord from and against all actions, demands,
               proceedings, claims, damages, losses, costs, expenses and
               liabilities arising directly or indirectly out of any breach of
               the Tenant's obligations under this Lease or any failure to
               comply with any applicable Law and against any liability for any
               value added taxes, tax, stamp duty or other fees specifically
               imposed on the Landlord in connection with the Premises or the
               Basic Rent of whatever nature, including penalties and interest
               on such overdue or unpaid tax (and penalties for failure to give
               appropriate notices and information under any applicable Law) for
               which the Landlord shall be liable as a result of any development
               carried out on the Premises by the Tenant or its permitted
               sublessees and shall within fourteen (14) days of demand pay to
               the Landlord the amount of any such sum, provided that the Tenant
               will not bear any responsibility or obligation where such
               liabilities, claims, costs or expenses arose from the Landlord's
               wilful misconduct or gross negligence.

     10.13 Environmental requirements

          The Tenant covenants with the Landlord as follows:

          10.13.1 to ensure at all times throughout the Term that the Premises
               and the Tenant are in compliance with Environmental Law in its
               use and occupation of the Premises and, in particular, but
               without limitation, that the Tenant or any other occupier of the
               Premises obtains and complies with all Environmental Permits
               required for the storage, use or disposal of any Dangerous
               Substances at, on or from the Premises;

          10.13.2 not at any time during the Term to cause or permit the
               deposit, spillage or release onto the surface or into the
               sub-soil of the Premises of any Dangerous

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               Substances otherwise than in accordance with the terms of a valid
               Environmental Permit;

          10.13.3 not at any time during the Term to do or permit to be done
               anything on the Premises which could cause disturbance to the
               operation of or damage to the above ground or under ground
               storage tanks and associated lines or pipe work at the Premises;

          10.13.4 in the event of a breach of its obligations contained in
               Clauses 10.13.1, 10.13.2, 10.13.3 above, to notify the Landlord
               immediately in writing of the same and forthwith and with all due
               speed and diligence to carry out such works of investigation and
               remediation as may be necessary to remedy the consequences of the
               breach and to reinstate the Premises to their condition prior to
               the occurrence of the breach (taking into account at all times
               all reasonable requirements of the Landlord with regard to the
               nature and scope of such works) provided that, unless Tenant has
               failed to commence to cure such breach within thirty (30) days of
               written notice of such breach from Landlord or, following
               commencement of such a cure, Tenant has failed to diligently and
               continuously attempt to remedy such breach until it is cured,
               then, the Landlord shall have the option at its sole discretion
               to assume conduct of any such works in which case the Tenant
               shall reimburse the Landlord within fourteen (14) days of a
               written demand in respect of all properly and reasonably incurred
               costs, fees, (including professional fees) and expenses incurred
               in carrying out such works;

          10.13.5 that it will assume full responsibility for meeting all
               liabilities, claims, costs and expenses arising or incurred
               during the Term in respect of or in any way related to the
               presence in, on, over or under the Premises of any Dangerous
               Substances (regardless of when such Dangerous Substances first
               came to be present in, on, over or under the Premises) including
               liability for and the costs of any works of remediation
               (including on-going monitoring) which may be required in order to
               mitigate or prevent a liability under Environmental Law or as may
               be requested by a Competent Authority at any time in the future
               and that it will comply with all requirements of any Competent
               Authority made at any time thereunder provided that the Tenant
               shall have no responsibility or obligation where such
               liabilities, claims, costs or expenses arose solely out of the
               gross negligence or wilful misconduct of the Landlord.

     10.14 Not to overload

          Not to place or keep on or in the Premises any heavy articles or
          structures in such position or in such quantity or weight or otherwise
          in such manner howsoever as to overload or cause damage to the
          Premises.

     10.15 Guarantee

          10.15.1 To ensure that the Guarantee is provided for the Landlord's
               benefit upon the execution of this Lease.

     10.16 Compulsory Purchase

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<PAGE>

          (i)  The Landlord shall notify the Tenant of its receipt of a
               Compulsory Purchase Notice.

          (ii) In the event that a Compulsory Purchase with respect to of all or
               substantially all of the Premises, (a) the Landlord shall have no
               liability to the Tenant, (b) the Net Award will be solely for the
               Landlord's benefit as a compensation for the expropriation of the
               Premises, and (c) the Lease shall terminate on the date the Net
               Award is paid to Landlord.

          (iii) In the event that the Partial Compulsory Purchase occurs with
               respect to the Premises, this Lease shall remain in full force
               and effect as to the portion of the Premises which have not been
               affected by such Partial Compulsory Purchase (the "REMAINING
               PREMISES") with no reduction of Basic Rent.

          (iv) Tenant shall be entitled to make a claim on its own behalf under
               statutory law for any loss it suffers as a result of a Compulsory
               Purchase provided that such claim does not diminish any Net Award
               payable to Landlord.

     10.17 Restoration

          10.17.1 Unless the provisions of Clause 10.17.2 apply, any Net Award
               in respect of any Casualty or the Partial Compulsory Purchase
               shall be collected by the Tenant to reimburse Tenant for its
               costs incurred in restoring the Premises. Tenant shall be
               obligated to restore the Premises as close as possible to its
               value, condition and character immediately prior to such event
               (assuming the Premises to have been in the condition required by
               this Lease).

          10.17.2 If (i) the Premises are so destroyed or damaged by an Insured
               Risk such that the insurers are willing to make one or more lump
               sum payments of insurance proceeds in advance of reinstatement
               being paid for and completed, or (ii) the proceeds from any
               Partial Compulsory Purchase are in excess of E500,000, then,
               the Landlord or Lender may hold the entire Net Award in a fund
               (the "RESTORATION FUND") and Landlord or Lender shall disburse
               amounts from the Restoration Fund in accordance with the
               following conditions:

               (i)  prior to commencement of restoration, (A) the architects,
                    contracts, contractors, plans and specifications and a
                    budget for the restoration shall have been reviewed with the
                    Landlord, and (B) the Landlord shall be provided with
                    acceptable performance and payment bonds which insure
                    satisfactory completion of and payment for the restoration,
                    are in an amount and form and with a surety reasonably
                    acceptable to the Landlord taking into account market
                    standards, and name the Landlord as additional
                    co-beneficiary or be assigned to Landlord;

               (ii) at the time of any payment, no Material Lease Default on the
                    part of the Tenant shall exist and no liens in favour of
                    workmen that have arisen through the conduct of work on the
                    Premises (other than those liens that arise automatically
                    under the Law) shall have been filed against any of the
                    Premises and remain undischarged;

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<PAGE>
               (iii) at the time of any payment, the Tenant is not declared
                    bankrupt nor has the application for bankruptcy been
                    rejected with respect to the Tenant due to the lack of funds
                    sufficient for covering the costs of the bankruptcy
                    proceeding;

               (iv) payments shall be made from time to time in an amount not
                    exceeding the cost of the work completed since the last
                    disbursement, upon receipt of (A) architects' certificates
                    showing the stage of completion and the estimated total cost
                    of completion) that the work to date has been performed in a
                    good and workmanlike manner in accordance with the
                    contracts, plans and specifications, (B) contractors' and
                    subcontractors' statements as to completed work and the cost
                    thereof for which payment is requested, and (C) paid
                    receipts so that the Landlord and Landlord's construction
                    consultant can verify in their reasonable discretion that
                    the amounts disbursed from time to time are represented by
                    work that is completed, in place and free from any material
                    technical defects and clear from any third party claims.
                    Landlord shall cause its construction consultant to provide
                    such a verification (or objection) within ten (10) Working
                    Days of the date all documentation required to be delivered
                    to Landlord and its construction consultant under this
                    clause (iv) being delivered and no such objection may be
                    based upon compliance by Tenant with the documentation
                    approved by Landlord pursuant to Clause 10.17.2(i).

               (v)  each request for payment shall be accompanied by a
                    certificate from the Tenant, signed by an authorised
                    representative of the Tenant, describing the work for which
                    payment is requested, stating the cost incurred in
                    connection therewith, and stating that the Tenant has not
                    previously received payment for such work and, upon
                    completion of the work, also stating that the work has been
                    fully completed and complies with the applicable
                    requirements of this Lease;

               (vi) the Landlord shall not unreasonably withhold or delay any
                    payment under this Clause 10.17.2 or the granting or
                    withholding of any consents or approvals with respect to the
                    reinstatement; and

               (vii) the Landlord may retain ten percent (10%) of the Net Award
                    until the work is fully completed. So long as no Event of
                    Default then exists, any amounts so retained shall be paid
                    to Tenant or the general contractor, as applicable,
                    following final completion of the restoration work in
                    compliance with this Lease and receipt by Landlord of all
                    documentation Landlord reasonably requires to verify same.

          10.17.3 In the event Landlord's construction consultant objects as
               provided in Clause 10.17.2 (iv)(C) and Tenant disagrees with such
               determination by giving Landlord and Landlord's construction
               consultant written notice of such disagreement within three (3)
               Working Days of being notified in writing of such objection,
               then, a representative of Tenant, a representative of Landlord
               and Landlord's construction consultant shall meet (in person
               and/or by telephone) within seven

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               (7) Working Days of Tenant notifying Landlord in writing of its
               disagreement with the objection by Landlord's construction
               consultant (the "MEETING"). If the parties are unable to resolve
               such disagreement within three (3) Working Days following the
               Meeting, then, Landlord and Tenant will attempt to agree upon the
               appointment of an independent construction consultant of good
               reputation and with not less than ten (10) years experience
               monitoring similar projects to resolve such dispute. If such
               independent construction consultant comes to a different
               conclusion than Landlord's construction consultant, the
               determination of such independent construction consultant shall
               supersede and replace the determination of Landlord's
               construction consultant. If, however, Landlord and Tenant are
               unable to agree upon such an independent construction consultant
               within fifteen (15) Working Days of the Meeting or the
               independent construction consultant does not make a determination
               without undue delay and at the latest within twenty (20) Working
               Days of its appointment, then, either Landlord or Tenant may
               refer such matter to the President of the local Chamber of
               Commerce and Industry (Industrie-und Handelskammer) locally
               competent for the Premises to select an independent construction
               consultant. All out-of-pocket costs and fees with respect to the
               procedure described in this Clause 10.17.3, including the fees
               and costs of the independent construction consultant and/or the
               President of the local Chamber of Commerce and Industry
               (Industrie-und Handelskammer) locally competent for the Premises
               shall be paid by Tenant. The determination made by the
               independent construction consultant shall be deemed to be an
               arbitrator's expert opinion (Schiedsgutachten) and no recourse to
               legal action to appeal such determination shall be permitted.

          10.17.4 Prior to commencement of restoration and at any time during
               restoration, if the estimated cost of completing the restoration
               work free and clear of all liens, as determined by the Landlord
               and the Tenant, exceeds the amount of the Net Award or insurance
               proceeds available for such restoration, the amount of such
               excess shall, upon demand by the Landlord, be paid by the Tenant
               to the Landlord or directly applied by the Tenant to the cost of
               the restoration. The Landlord shall have the right to inspect the
               application of funds raised by the Tenant for the restoration of
               the Premises.

          10.17.5 Any such sums held under Clause 10.17.2 shall be kept in an
               account separate from any other funds of the Landlord and all
               interest earned thereon shall form part of the Restoration Fund.

11   SECURITY DEPOSIT

          11.1.1 Concurrently with the payment of the purchase price under the
               Purchase and Sale Agreement, Tenant shall deliver to Landlord a
               security deposit in the amount of E452,868.50 (together with
               any additional security deposit paid to Landlord pursuant to
               Clause 11.1.2 and Sublet Security Deposit, the "SECURITY
               DEPOSIT"). The Security Deposit shall be either immediately
               available funds ("CASH SECURITY DEPOSIT") or in the form of an
               irrevocable letter of credit (the "LETTER OF CREDIT") and shall
               be issued by a bank acceptable to Landlord and having a long-term
               unsecured debt rating of not less than "A" from Standard &

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<PAGE>

               Poor's Corporation and in form and substance satisfactory to
               Landlord. The Security Deposit shall remain in full force and
               effect during the Term as security for the payment by Tenant of
               the Basic Rent, Outgoings, and all other charges or payments to
               be paid hereunder and the performance of the covenants and
               obligations contained herein, and, if the Security Deposit is a
               Letter of Credit, the Letter of Credit shall be renewed at least
               thirty (30) days prior to any expiration thereof. If Tenant fails
               to renew the Letter of Credit by such date, time being of the
               essence, Landlord shall send an written reminder notice to
               Tenant. If Tenant has not yet renewed the Letter of Credit within
               five Working Days after Landlord gives Tenant such an written
               reminder notice, then Landlord shall have the right to draw on
               the Letter of Credit and to deposit the proceeds of the Letter of
               Credit as a Cash Security Deposit in any account for the benefit
               of Landlord, but any failure of Landlord to so draw on the Letter
               of Credit shall not mitigate the obligation of Tenant to maintain
               the full amount of the Security Deposit required pursuant to the
               terms of this Lease at all times during the Term of this Lease.
               Any Cash Security Deposit shall not be commingled with other
               funds of Landlord or other Persons and no interest thereon shall
               be due and payable to Tenant.

          11.1.2 If at any time following an Asset Sale Without Lease Assumption
               (as defined in the Guarantee) the Guarantor is not publicly
               traded on a national exchange in the United Kingdom, the Tenant
               shall increase the Security Deposit by an amount equal to one
               year of the Basic Rent then in effect. Such increase shall be
               made by delivering to Landlord either (i) cash (in Euros) in an
               amount equal to one year of the Basic Rent then in effect, or
               (ii) another Letter of Credit in an amount equal to one year of
               Basic Rent then in effect.

          11.1.3 If at any time an Event of Default shall have occurred and be
               continuing, Landlord shall be entitled, at its sole discretion,
               to draw on the Letter of Credit or to withdraw the Cash Security
               Deposit from the above-described account and to apply the
               proceeds in payment of (i) any Rent, Outgoings, or other charges
               for the payment of which Tenant shall be in default, (ii) prepaid
               Basic Rent, (iii) any expense incurred by Landlord in curing any
               default of Tenant, and/or (iv) any other sums due to Landlord in
               connection with any default or the curing thereof, including,
               without limitation, any damages incurred by Landlord by reason of
               such default, including any rights of Landlord under Clause 14.1
               or to do any combination of the foregoing, all in such order or
               priority as Landlord shall so determine in its sole discretion
               and Tenant acknowledges and agrees that such proceeds shall not
               constitute assets or funds of Tenant or its estate, or be deemed
               to be held in trust for Tenant, but shall be, for all purposes,
               the property of Landlord (or Lender, to the extent assigned).
               Tenant further acknowledges and agrees that (1) Landlord's
               application of the proceeds of the Letter of Credit or Cash
               Security Deposit towards the payment of Basic Rent, Outgoings,
               any other sums due under this Lease or the reduction of any
               damages due Landlord in accordance with Clause 14.1 of this
               Lease, constitutes a fair and reasonable use of such proceeds,
               and (2) the application of such proceeds by Landlord towards the
               payment of Basic Rent, Outgoings, or any other sums due under
               this Lease shall not constitute a cure by Tenant of the
               applicable default provided that

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<PAGE>

               an Event of Default shall not exist if Tenant restores the
               Security Deposit to its full amount within fourteen (14) days and
               in accordance with the requirements of this Clause 11, so that
               the original amount of the Security Deposit shall be again on
               deposit with Landlord.

          11.1.4 At the expiration of the Term and so long as no Event of
               Default exists the Letter of Credit or the Cash Security Deposit,
               as the case may be, shall be returned to Tenant. In addition,
               provided no Event of Default then exists hereunder or under any
               sublease, any Sublet Security Deposit held by Landlord shall be
               returned to Tenant on the first anniversary of the date (i) the
               entire Premises became occupied pursuant to a sublease, or (ii)
               the Tenant re-occupied the entire Premises.

          11.1.5 Landlord shall have the right to designate Lender or any other
               holder of a Mortgage as the beneficiary of the Letter of Credit
               or the Cash Security Deposit during the term of the applicable
               Loan, and such Lender or other holder of a Mortgage shall have
               all of the rights of Landlord under this Clause 11. Tenant
               covenants and agrees to execute such agreements, consents and
               acknowledgments as may be requested by Landlord from time to time
               to change the holder of the Security Deposit as hereinabove
               provided.

12   COVENANT OF QUIET ENJOYMENT

     The Landlord covenants with the Tenant that the Tenant paying the Rent
     reserved and observing and performing its covenants and conditions
     contained in this Lease may peaceably and quietly hold and enjoy the
     Premises without any unlawful interruption by the Landlord or any person
     rightfully claiming through under or in trust for it.

13   POST CLOSING OBLIGATIONS

     13.1 Tenant shall complete, remediate or obtain or caused to be completed,
          remediated or obtained certain of the Disclosed Defects described in
          and within the time periods specified in Schedule 5 (the "POST CLOSING
          OBLIGATIONS").

14   FINANCING OF EXPANSION.

     14.1 So long as no Material Lease Default or Material Adverse Change (as
          defined below) exists, Landlord shall until, but not after, the second
          anniversary of the Commencement Date (the "Outside Date") subject to
          the terms of this Clause 14, pay for up to Seven Million Euros
          (E7,000,000) (the "Funding Cap") of the hard and soft costs incurred
          by Tenant (the "Expansion Purchase Price") for an expansion to the
          existing building on the Premises (the "Expansion"). Notwithstanding
          the foregoing, so long as no Material Lease Default or Material
          Adverse Change exists and Landlord's consultant has confirmed that as
          of the Outside Date at least fifty percent (50%) of the Expansion is
          complete, then:

          14.1.1 On the Outside Date Landlord shall deposit the unfunded portion
               of the Expansion Purchase Price reasonably estimated by Landlord
               (based upon the budget approved by Landlord and the
               recommendations of Landlord's construction consultant) to be
               required to complete the Expansion into an

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<PAGE>

               account controlled by Landlord (the "Landlord Account"), but in
               no event shall the amount disbursed by Landlord for the Expansion
               Purchase Price prior to the Outside Date combined with the amount
               paid into the Landlord Account exceed the Funding Cap.

          14.1.2 On or before the Outside Date, Landlord and Tenant shall enter
               into the amendment described in Clause 14.5(vii) below treating
               both the sums paid to Tenant and the sums deposited into the
               Landlord Account as included in the Expansion Purchase Price paid
               to Tenant, which amendment shall be effective as of the date the
               Landlord Account is funded pursuant to Clause 14.1.1 above.

          14.1.3 From and after the Outside Date, Landlord shall continue to
               reimburse Tenant for hard and soft costs incurred by Tenant for
               the Expansion pursuant to Clauses 14.2, 14.3 and 14.5 below
               provided that such payments shall be made exclusively from the
               Landlord Account and no further payments shall be required to be
               made by Landlord after the Landlord Account is depleted.

     14.2 Prior to commencement of construction of the Expansion, Tenant shall
          provide to Landlord, each in form and substance acceptable to Landlord
          acting in the manner of a prudent owner of commercial property: (i)
          the plans and specifications, (ii) a construction contract between the
          Tenant and a contractor which shall provide, among other things, that
          any change orders, including any reallocations of any line items in
          the budget, in excess of E100,000 individually or E200,000 in
          the aggregate shall require the prior written consent of Landlord,
          which consent shall not be unreasonably withheld or delayed, (iii) an
          architect's agreement between Tenant and an architect, (iii) all
          required municipal approvals, (iv) a building permit, (v) a budget
          confirming that the total cost of the Expansion will not exceed
          E7,000,000, (vi) a survey that confirms that the Expansion will
          be within the property lines of the Land, (vii) a valuation prepared
          by a valuer reasonably acceptable to both Tenant and Landlord
          demonstrating that the Expansion will increase the value of the
          Premises by an amount reasonably acceptable to Landlord, and (viii)
          such other items as Landlord may reasonably request.

     14.3 The Landlord shall make periodic (but not more frequently than
          monthly) reimbursement payments to either, at Landlord's election, the
          Tenant or directly to Tenant's contractor in payment of the Expansion
          Purchase Price based upon the payment schedule set forth in the
          construction contract approved by Landlord. The obligation of Landlord
          to make such payments shall be subject to (i) receipt of all
          documentation required for the payment of such amounts pursuant to the
          construction contract approved by Landlord (the "Payment Request"),
          and (ii) receipt by Landlord of written confirmation from Landlord's
          construction consultant that all work referenced in the Payment
          Request has been completed in a good and workmanlike manner in
          accordance with the plans and budget and in compliance with applicable
          laws. Landlord will request its construction consultant to give such
          confirmation, at Tenant's expense, promptly upon receipt of a Payment
          Request and Landlord will cause its construction consultant to confirm
          or object to the Payment Request within ten (10) Working Days of
          receipt by Landlord and its construction consultant of all of the
          documentation required to be delivered pursuant to clauses (i) and
          (ii) above and no such objection may be based upon compliance by
          Tenant with the documentation approved by

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<PAGE>

          Landlord pursuant to Clause 14.2. Landlord shall provide to Tenant the
          name and contact details for its construction consultant promptly
          following request by Tenant.

     14.4 Commencing on the first day of the month immediately following the
          month on which Landlord makes the first reimbursement payment to
          Tenant pursuant to Clause 14.3 and continuing on the first day of each
          succeeding month until the date Basic Rent is adjusted pursuant to the
          amendment referenced in Clause 14.5 below, in addition to Basic Rent,
          Construction Basic Rent shall be payable by Tenant monthly in arrears
          on the first of each month in an amount equal to the one month EURIBOR
          rate plus 485 basis points multiplied by the amount paid by Landlord
          to date which shall be calculated based on the number of days each
          reimbursement payment is outstanding.

     14.5 Prior to the final reimbursement by Landlord to Tenant of the
          Expansion Purchase Price the Landlord shall have received each of the
          following items in form and substance reasonably acceptable to
          Landlord: (i) if required by the applicable governmental authority, an
          official final acceptance from the applicable governmental authority
          with respect to the Expansion, (ii) copies of all warrantees issued
          with respect to the Expansion, each of which having been assigned to
          the Landlord, (iii) evidence that an application has been filed with
          appropriate governmental office requesting an updated cadastral map of
          the Premises including the Expansion and all fees with respect to such
          request have been paid, (iv) a certificate from the architect and
          contractor and a report from Landlord's construction consultant each
          confirming that the Expansion has been built in a good and
          workman-like manner in accordance with the previously approved plans
          and specifications and in compliance with all applicable laws, (v)
          copies of the as-built plans and specifications issued by the
          architect and contractor, (vi) an amendment to the Lease that shall
          provide for (A) increase of the annual Basic Rent by an amount equal
          to the product of the Expansion Purchase Price multiplied by the
          10-year Euroswap as of the date of funding plus 485 basis points, and
          (B) an extension of the Expiration Date of the initial Term to fifteen
          (15) years from the date that Landlord pays to Tenant the final
          reimbursement payment of the Expansion Purchase Price, and (vii) such
          other items as Landlord may reasonably request, provided that Landlord
          shall advise Tenant of any such other items that it will require at
          the same time it approves the items required pursuant to Clause 14.2
          above. Landlord agrees that promptly following receipt of a request
          from Tenant requesting the final reimbursement by Landlord to Tenant
          of the Expansion Purchase Price, Landlord shall request Landlord's
          construction consultant, at Tenant's expense, to confirm the matters
          described in this Clause 14.5(iv) above are correct and Landlord will
          cause its construction consultant to confirm or object with respect to
          such matters within ten (10) Working Days of receipt by Landlord and
          its construction consultant of all of the documentation required to be
          delivered pursuant to clauses (i), (ii), (iv), (v) and (vii) of this
          Clause 14.5 and no such objection by Landlords construction consultant
          may be based upon compliance by Tenant with the documentation approved
          by Landlord pursuant to Clause 14.2.. Tenant agrees that promptly upon
          receipt of an updated cadastral map, it will provide a copy of same to
          Landlord.

     14.6 In the event Landlord's construction consultant objects as provided in
          Clause 14.3(ii) or 14.5(iv) and Tenant disagrees with such
          determination by giving Landlord and Landlord's construction
          consultant written notice of such disagreement within three (3)
          Working Days of being notified in writing of such objection, then, a
          representative of Tenant, a

                                      -34-

<PAGE>

          representative of Landlord and Landlord's construction consultant
          shall meet (in person and/or by telephone) within seven (7) Working
          Days of Tenant notifying Landlord in writing of its disagreement with
          the objection by Landlord's construction consultant (the "MEETING").
          If the parties are unable to resolve such disagreement within three
          (3) Working Days following the Meeting, then, Landlord and Tenant will
          attempt to agree upon the appointment of an independent construction
          consultant of good reputation and with not less than ten (10) years
          experience monitoring similar projects to resolve such dispute. If
          such independent construction consultant comes to a different
          conclusion than Landlord's construction consultant, the determination
          of such independent construction consultant shall supersede and
          replace the determination of Landlord's construction consultant. If,
          however, Landlord and Tenant are unable to agree upon such an
          independent construction consultant within fifteen (15) Working Days
          of the Meeting or the independent construction consultant does not
          make a determination without undue delay and at the latest within
          twenty (20) Working Days of its appointment, then, either Landlord or
          Tenant may refer such matter to the President of the local Chamber of
          Commerce and Industry (Industrie-und Handelskammer) locally competent
          for the Premises to select an independent construction consultant. All
          out-of-pocket costs and fees with respect to the procedure described
          in this Clause 14.6, including the fees and costs of the independent
          construction consultant and/or the President of the local Chamber of
          Commerce and Industry (Industrie-und Handelskammer) locally competent
          for the Premises shall be paid by Tenant. The determination made by
          the independent construction consultant shall be deemed to be an
          arbitrator's expert opinion (Schiedsgutachten) and no recourse to
          legal action to appeal such determination shall be permitted.

     14.7 Nothing contained in this Clause 14 shall be construed to modify
          Clause 10.3 (Alterations and Additions), including the requirement for
          Landlord's consent thereto, and, in all events, the Expansion shall be
          subject to the terms of this Lease.

     14.8 Tenant shall cause the conditions set forth in Clause 14.5 to be
          satisfied and the Expansion to be completed no later than 31 March
          2011. All reasonable legal fees and other out-of-pocket expenses
          incurred by Landlord in connection with this Clause 14 shall be paid
          by Tenant.

     14.9 For purposes of this Clause 14, the term "Material Adverse Change"
          shall mean (i) a material casualty to the Premises has occurred, (ii)
          that Tenant, the tenant under the Waldaschaff Lease or Guarantor (A)
          has become a party to an insolvency or similar proceeding, or (B) has
          defaulted under a material credit agreement, lease or guarantee, or
          (iii) as of the date Landlord intends to make the first reimbursement
          payment for the Expansion Purchase Price, Guarantor's Net Debt to
          EBITDA Ratio exceeds 4:1 (calculated based upon Guarantor's 31 March
          2008 fiscal year financial statements until Guarantor's 30 September
          2008 financials are available and thereafter calculated on a trailing
          twelve (12) month basis). Tenant shall provide a certification from an
          officer of Guarantor containing the calculation of the ratio test
          described in clause (iii) above together with Tenant's delivery of the
          items described in Clause 14.2.

     14.10 As used in Clause 14.9 or in the definitions in this Clause 14.10,
          the following terms shall have the following meanings:

                                      -35-

<PAGE>

          14.10.1 "EBITDA" means Net Income of a Person, plus, to the extent
               deducted in determining Net Income of such Person, (i) interest
               expense, amortization or write-off of debt discount, other
               deferred financing costs and other fees and charges associated
               with indebtedness, (ii) expenses for taxes based on income or
               gain, (iii) depreciation, (iv) amortization, write-offs,
               write-downs, asset revaluations and other non-cash charges,
               losses and expenses, including non-cash equity compensation
               expenses, (v) impairment of intangibles, including, without
               limitation, goodwill, (vi) extraordinary losses (as determined in
               accordance with IAS) realized other than in the ordinary course
               of business, and (vii) extraordinary, unusual, or non-recurring
               charges and expenses including transition, restructuring and
               "carve out" expenses.

          14.10.2 "Net Debt" means (a) the aggregate principal amount of debt of
               the Guarantor and its subsidiaries which would, in accordance
               with IAS as used in the Guarantor's most recent audited
               consolidated financial statements, be treated as a borrowing,
               less (b) the aggregate amount of cash and cash equivalents of the
               Guarantor and its subsidiaries in each case, determined on a
               consolidated basis.

          14.10.3 "Net Debt to EBITDA Ratio" means, with respect to any Person
               the ratio of (i) Net Debt of such Person as of the last day of
               such period to (ii) EBITDA of such Person for such period as of
               the last day of such period.

          14.10.4 "Net Income" means, with respect to any Person for any period,
               the aggregate of the net income (loss) of such Person and its
               subsidiaries, on a consolidated basis, for such period, all as
               determined in accordance with IAS; provided, that the net losses
               of any Person that is not a consolidated subsidiary or that is
               accounted for by the equity method of accounting shall be
               excluded, and the net income of any such Person shall be included
               only to the extent of the amount of dividends or distributions
               paid or payable to such first-mentioned Person or a consolidated
               subsidiary of such Person.

15   GENERAL PROVISIONS

     Provided always and it is agreed and declared as follows:

     15.1 Events of Default

          Notwithstanding and without prejudice to any other remedies and powers
          contained in this Lease or otherwise available to the Landlord, if:

          15.1.1 the Tenant is in default of payment of the quarterly payments
               of the Basic Rent provided, however, that with respect to the
               each quarterly instalment of Basic Rent (or any portion thereof)
               in any Lease Year that is not paid when due, an Event of Default
               shall not exist solely as a result of such payment not being paid
               when due until five (5) Working Days after Landlord has given to
               Tenant written notice thereof; or

          15.1.2 the Tenant is in default of payment of VAT, real estate or
               other taxes or Outgoings payable to Landlord or any other
               payments under this Lease for more than fifteen (15) days after
               written notice thereof from Landlord to Tenant;

                                      -36-

<PAGE>

          15.1.3 the Tenant or Guarantor:

               (i)  files, or is under statutory law obliged to file, for
                    insolvency proceedings; or

               (ii) insolvency proceedings on the Tenant's assets are opened or
                    dismissed for lacking assets

               and, with respect to the Guarantor only, Lender has declared a
               default under its Loan as a result of the Guarantor's insolvency
               ("Guarantor Insolvency Event");

          15.1.4 the Tenant violates any of its obligations set out in Clause
               9.1;

          15.1.5 any other circumstances occur where a failure of Tenant to
               perform or other circumstances will allow Landlord to terminate
               this Lease for cause (Kundigung aus wichtigem Grund) under
               applicable statutory provisions and Tenant does not remedy such
               failure within thirty (30) days after receipt of the Landlord's
               written demand to do so;

          15.1.6 the Tenant is in breach of any other terms of this Lease and
               does not remedy the default within thirty (30) days after receipt
               of the Landlord's written demand to do so;

          15.1.7 Tenant shall fail to provide, maintain and, if necessary,
               replenish the Security Deposit in accordance with the
               requirements of Clause 11; or

          15.1.8 an Event of Default (as that term is defined in the Waldaschaff
               Lease) shall occur under the Waldaschaff Lease at any time during
               which (i) the Guarantor first named hereunder is the ultimate
               owner of the tenant under the Waldaschaff Lease, or (ii) the
               ultimate owner (or any Affiliate thereof) of the tenant under the
               Waldaschaff Lease is also the ultimate owner of the Tenant under
               this Lease,

          then, and in any such case, the Landlord may terminate this Lease with
          immediate effect and re-enter the Premises or any part of the Premises
          without prejudice to any right of action or remedy of the Landlord
          against the Tenant for damages, including the Default Amount or
          otherwise in respect of any breach non-observance or non-performance
          of any of the covenants or any conditions contained in this Lease,
          provided that with respect to a Guarantor Insolvency Event, Landlord
          shall act reasonably in making a decision of whether to exercise its
          remedies, including its right to terminate this Lease. Tenant
          acknowledges and agrees that it shall be required to pay to Landlord
          the Default Amount upon a termination of this Lease as a result of an
          Event of Default as a part of the damages payable to Landlord as a
          result of the default. However, to the extent required by Law, after
          receipt of all damages (including the Default Amount) the Landlord
          undertakes to mitigate any and all losses or damages it has suffered
          as a result of termination set out above, and in such event will
          reimburse the Tenant to the extent of monies received (after deduction
          of all reasonable reletting costs). If the Landlord does not exercise
          its remedies in respect of a Guarantor Insolvency Event then for the
          purpose of this Lease there shall be no Event of Default.

     15.2 Surrender of the Premises

                                      -37-

<PAGE>

          15.2.1 Subject to any extensions of this Lease (including a short-term
               extension of the Term of up to six (6) months pursuant to Clause
               5.2), the Tenant shall surrender the Premises to the Landlord on
               the last Working Day of the Term (or if this Lease is terminated
               or expires before the lapse of the Term, on the day immediately
               following such termination or expiry). On such a date the
               Premises should be clean, in a good state of repair, free from
               any of the Tenant's equipment or furniture and in good condition.

          15.2.2 In the event that the Tenant fails to surrender the Premises in
               compliance with the foregoing provisions, it will be required to
               pay to the Landlord, as compensation for unlawful use of the
               Premises, an amount equal to twice the amount of the Basic Rent
               on a daily basis as compensation for the delay in surrendering
               the Premises; for the avoidance of doubt, the Tenant will also be
               required to pay Outgoings relating to the period of such unlawful
               use of the Premises.

     15.3 Service of notices

          15.3.1 Any demand or notice to be served on the Tenant under this
               Lease will be validly served if sent by internationally
               recognised over night delivery service or facsimile addressed to
               the Tenant at its registered office, its last known address, at
               the Premises or at the address below (or such other address that
               Tenant may notify Landlord of in writing from time to time). Any
               notice to be served on the Landlord will be validly served if
               sent by internationally recognised over night delivery service or
               facsimile addressed to the Landlord at its address below (or such
               other address that Landlord may notify Tenant of in writing from
               time to time).

               LANDLORD:         WGN (GER) LLC
                                 c/o W.P. Carey & Co. LLC
                                 50 Rockefeller Plaza, Second Floor
                                 New York, New York 10020
                                 United States of America (USA)
                                 Fax: +1-212-492-8922
                                 For the attention of: Director, Asset
                                 Management

               with copies to:   Reed Smith LLP
                                 599 Lexington Avenue, 29th Floor
                                 New York, New York 10022
                                 For the attention of: Chairman Real Estate
                                 Department
                                 Fax: +1 212-521-5450

               TENANT:           Wagon Automotive Nagold GmbH
                                 Geschaftsfuhrung
                                 Lise-Meitner-Stra(B)e 10
                                 D-72202 Nagold
                                 Germany
                                 Fax: +0121 329 5150

                                      -38-

<PAGE>

               with copies to:   Wagon plc
                                 Company Secretary
                                 3500 Parkside
                                 Birmingham Business Park
                                 Birmingham B37 7YG
                                 United Kingdom
                                 Fax: +0121 329 5150

          15.3.2 Any demand or notice sent by facsimile will be conclusively
               treated as having been served when confirmed by an activity
               report confirming the facsimile number to which such notice was
               sent, the number of pages transmitted and that such transmission
               was successfully completed.

          15.3.3 However, a notice given in accordance with the above, but
               received on a non-Working Day or after business hours in the
               place of receipt will only be deemed to be served on the next
               Working Day in that place.

          15.3.4 The address and facsimile number of each party for all notices
               under or in connection with this Lease are:

               (i)  those notified by that party for this purpose to the other
                    parties on or before the date of this Lease; or

               (ii) any other notified by that party for this purpose to the
                    other parties by not less than seven (7) days' notice.

               (iii) Landlord herewith appoints as its agent for service of
                    process (Zustellungsbevollmachtigten) in the sense Section
                    171 German Code of Civil Procedure (Section 171
                    Zivilprozessordnung): Reed Smith LLP, Funf-Hofe,
                    Theatinerstrasse 8, Munich, D-80333, Germany, Attention:
                    Etienne Richthammer.

     15.4 Failure to perform obligations

          The Landlord will have a thirty (30) day cure period, after receiving
          notice from the Tenant to remedy any default under this Lease. In case
          of the Landlord's default, the Landlord shall be liable to compensate
          the Tenant for loss or damage sustained by the Tenant from the day of
          occurrence of such default, subject, however, to the limitation set
          forth in Clause 15.10.

     15.5 Waiver of right to forfeit

          No demand for or acceptance or receipt of any part of the Basic Rent
          or the Outgoings shall operate as a waiver by the Landlord of any
          right which the Landlord may have to forfeit this Lease by reason of
          any breach of covenant by the Tenant notwithstanding that the Landlord
          may know or be deemed to know of such breach at the date of such
          demand, acceptance or receipt.

     15.6 Covenants relating to adjoining Premises

          Nothing contained in or implied by this Lease places any obligation on
          the Tenant or gives the Tenant the benefit of or the right to enforce
          or to prevent the release or modification of

                                      -39-

<PAGE>

          any covenant agreement or condition entered into by any Tenant of the
          Landlord in respect of any property not comprised in this Lease.

     15.7 Entire understanding; Schedules

          This Lease, together with all agreements specifically referred to
          herein, embodies the entire understanding between the parties relating
          to the Premises and to all the matters dealt with by the provisions of
          this Lease. The schedules attached to this Lease are incorporated
          herein as if fully set forth. The Landlord and Tenant are business
          entities having substantial experience with the subject matter of this
          Lease and have each fully participated in the negotiation and drafting
          of this Lease. Accordingly, this Lease shall be construed without
          regard to the rule that ambiguities in a document are to be construed
          against the party which drafted the agreement.

     15.8 Severance

          Each of the Clauses of this Lease is distinct and severable from the
          others and if at any time one (1) or more of such provisions is or
          becomes illegal, invalid or unenforceable, the validity, legality and
          enforceability of the remaining provisions will not in any way be
          affected or impaired. For replacement of any ineffective or incomplete
          clauses the Parties undertake to agree upon effective or complete
          clauses that correspond as much as possible to the economic purpose of
          any ineffective or incomplete clauses.

     15.9 Governing law and jurisdiction

          This Lease shall be governed by, and construed in accordance with the
          laws of Germany and the venue for any dispute hereunder shall be a
          court of competent jurisdiction in Frankfurt, Germany.

     15.10 Non-recourse

          Anything contained herein to the contrary, notwithstanding any claim
          based on or in respect of any liability of the Landlord under this
          Lease, shall be enforced only against the Landlord and not against any
          other assets, properties or funds of:

          15.10.1 any director, officer, member, shareholder, employee or agent
               of the Landlord or any general partner of the Landlord or any of
               its members (or any legal representative, heir, estate, successor
               or assign of any thereof);

          15.10.2 any general partners, shareholders, officers, directors,
               members, employees or agents, either directly or through the
               Landlord or its shareholders, officers, directors, employees or
               agents of any predecessor or successor partnership or corporation
               (or other entity) of the Landlord; or

          15.10.3 any person affiliated with any of the foregoing, or any
               director, officer, employee or agent of any thereof.

     15.11 Requests for information

          15.11.1 At any time upon not less than fourteen (14) days' prior
               written request by the Landlord to the Tenant, the Tenant shall
               deliver to the Landlord a statement in writing, executed by an
               authorized officer of the Tenant, certifying except as otherwise
               specified, (a) that, except as otherwise specified, this Lease is

                                      -40-

<PAGE>

               unmodified and in full force and effect, (b) the dates to which
               Basic Rent and Outgoings have been paid, (c) that, to the
               knowledge of the signer of such certificate and except as
               otherwise specified, no default by either Landlord or Tenant
               exists hereunder, (d) that there are no proceedings pending or,
               to the knowledge of Tenant, threatened, against the Tenant before
               or by any court or administrative agency which if adversely
               decided, would materially and adversely affect the financial
               condition and operations of the Tenant, and (e) such other
               matters as Landlord may reasonably request.

          15.11.2 Any such statements by the Tenant may be relied upon by the
               Landlord, and any person whom the Landlord notifies the Tenant in
               its request for the statement is an intended recipient or
               beneficiary of the statement, any Mortgagee or Lender or their
               assignees and by any prospective purchaser or prospective
               Mortgagee of any of the Premises.

     15.12 Amendments

          This Lease may be modified, amended, discharged or waived only by an
          agreement in writing signed by both the parties.

     15.13 Successors and Assigns

          The covenants of this Lease shall bind the Tenant and Landlord and
          their successors and assigns and all subtenants of any of the
          Premises, and shall inure to the benefit of the Landlord and the
          Tenant and their respective successors and assigns. The Tenant hereby
          consents to any assignment of the Landlord's interest in this Lease to
          a Lender.

     15.14 Requirement of Written Form

          Landlord and Tenant acknowledge the requirement of written form
          stipulated by Section 550 German Civil Code and undertake to observe
          the requirement of written form at any time when altering, modifying,
          amending, discharging, assigning or transferring this Lease and
          undertake to commit any action necessary to ensure that the
          requirement of written form is fulfilled at any time. Landlord and
          Tenant, and their respective successors and assigns, hereby waive any
          rights for termination of this Lease based on the argument that the
          requirement of written form was not observed. This clause may only be
          revoked in writing.

     15.15 Representation by Landlord

          Landlord represents to Tenant that the Facilities Agreement which
          shall evidence the terms of a Loan to be made by Societe Generale to
          Landlord on or about the Commencement Date shall include the following
          provision:

               "The Finance Parties shall act reasonably in making a decision of
               whether to declare a Default pursuant to this Clause 25.11
               (Insolvency of Wagon PLC):"

THIS AGREEMENT has been entered into on the date stated at the beginning of this
agreement.

                                      -41-

<PAGE>

                          EXECUTION OF LEASE AGREEMENT:

THE LANDLORD

SIGNED by Jeffrey  S. Lefleur,             )
Director,                                  )
duly authorised for and on behalf of       )
Conduit B.V. in its capacity as managing   )
member of WGN (GER) LLC:                   )

ADDRESS:                c/o W.P. Carey & Co. LLC
                        50 Rockerfeller Plaza, 2nd Floor
                        New York, NY 10020, U.S.A.

FACSIMILE NO:           +1 212 492 8922

FOR THE ATTENTION OF:   Director, Asset Management

THE TENANT

SIGNED by [-],                          )
duly authorised for and on behalf of,   )
WAGON AUTOMOTIVE NAGOLD GmbH,           )

ADDRESS:                                [-]

FACSIMILE NO:                           [-]

FOR THE ATTENTION OF:                   [-]

                                      -42-

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