Document:

Exhibit 4.1 to Donaldson Company, Inc. Form 8-K dated January 27, 2006

Exhibit 4.1 

DONALDSON COMPANY, INC. 

and 

WELLS FARGO BANK, N.A. 

Rights Agent 

Rights Agreement 

Dated as of January 27, 2006 

TABLE OF CONTENTS  

			Page 

	Section 1.	 	Certain Definitions	 	1	 
	Section 2.	 	Appointment of Rights Agent	 	6	 
	Section 3.	 	Issuance of Rights Certificates	 	6	 
	Section 4.	 	Form of Rights Certificates	 	8	 
	Section 5.	 	Countersignature and Registration	 	8	 
	Section 6.	 	Transfer, Split-Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates	 	9	 
	Section 7.	 	Exercise of Rights; Purchase Price; Expiration Date of Rights	 	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	 	22	 
	Section 13.	 	Consolidation, Merger or Sale or Transfer of Assets, Cash Flow or Earning Power	 	22	 
	Section 14.	 	Fractional Rights and Fractional Shares	 	24	 
	Section 15.	 	Rights of Action	 	25	 
	Section 16.	 	Agreement of Rights Holders	 	26	 
	Section 17.	 	Rights Certificate Holder Not Deemed a Stockholder	 	27	 
	Section 18.	 	Concerning the Rights Agent	 	27	 
	Section 19.	 	Merger or Consolidation or Change of Name of Rights Agent	 	27	 
	Section 20.	 	Duties of Rights Agent	 	28	 
	Section 21.	 	Change of Rights Agent	 	30	 
	Section 22.	 	Issuance of New Rights Certificates	 	31	 
	Section 23.	 	Redemption and Termination	 	31	 
	Section 24.	 	Exchange	 	32	 

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			Page 

	Section 25.	 	Notice of Certain Events 	 	33	 
	Section 26.	 	Notices	 	34	 
	Section 27.	 	Supplements and Amendments	 	34	 
	Section 28.	 	Successors	 	35	 
	Section 29.	 	Determinations and Actions by the Board of Directors, etc.	 	35	 
	Section 30.	 	Benefits of this Agreement	 	35	 
	Section 31.	 	Severability	 	35	 
	Section 32.	 	Governing Law	 	36	 
	Section 33.	 	Counterparts	 	36	 
	Section 34.	 	Descriptive Headings	 	36	 

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EXHIBITS  

	  	Exhibit A – Form of Certificate of Designation, Preferences and Rights 

	  	Exhibit B – Form of Rights Certificates 

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RIGHTS AGREEMENT  

        RIGHTS AGREEMENT, dated as of
January 27, 2006 (the “Agreement”), between Donaldson Company, Inc., a Delaware corporation (the “Company”),
and Wells Fargo Bank, N.A., a national banking association (the “Rights Agent”). 

W I T N E S S E T H  

        WHEREAS, in January 1996, the
Board of Directors of the Company (the “Board”) approved and adopted a Rights Agreement (the “1996 Agreement”)
pursuant to which preferred stock purchase rights were distributed to the stockholders of the Company; 

        WHEREAS, the rights issued
pursuant to the 1996 Agreement will expire on March 3, 2006; and 

        WHEREAS, on January 27, 2006
(the “Rights Dividend Declaration Date”), the Board determined to extend the protections afforded by the 1996 Agreement
by authorizing and declaring a dividend distribution of one new Right (as hereinafter defined) for each share of common stock, par
value $5.00 per share, of the Company (the “Common Stock”) outstanding at the close of business on March 3, 2006 (the
“Record Date”), to replace the rights previously issued pursuant to the 1996 Agreement, and the Board 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 issued between the Record Date (whether originally issued or delivered from the Company’s treasury) and
the Distribution Date (as hereinafter defined), each Right initially representing the right to purchase one one-thousandth of a
share of Series A Junior Participating Preferred Stock of the Company (the “Preferred Stock”) having the rights, powers
and preferences set forth in the form of Certificate of Designation, Preferences and Rights attached hereto as Exhibit A,
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 have the meanings indicated:  

	  	        (a)    “1996
Agreement” shall have the meaning set forth in the preamble hereof. 

	  	        (b)    “Acquiring
Person” shall mean any Person who or which, together with all Affiliates and Associates of such Person, shall be the
Beneficial Owner of fifteen percent (15%) or more of the shares of Common Stock then outstanding, but shall not include (i) the
Company, (ii) any Subsidiary of the Company, (iii) any employee benefit plan of the Company, or of any Subsidiary of the Company,
or any Person organized, appointed or established by the Company for or pursuant to the terms of any such plan, (iv) any Person
who becomes the Beneficial Owner of fifteen percent (15%) or more of the shares of Common Stock then outstanding as a result of a
reduction in the number of shares 

  

	  	of Common Stock outstanding due to the repurchase of shares of
Common Stock by the Company unless and until such Person, after becoming aware that such Person has become the Beneficial Owner of
fifteen percent (15%) or more of the then outstanding shares of Common Stock, acquires beneficial ownership of additional shares
of Common Stock representing one percent (1%) or more of the shares of Common Stock then outstanding or (v) any such Person who
has reported or is required to report such ownership (but less than 20%) on Schedule 13G under the Exchange Act (or any comparable
or successor report) or on Schedule 13D under the Exchange Act (or any comparable or successor report) which Schedule 13D does not
state any intention to or reserve the right to control or influence the management or policies of the Company or engage in any of
the actions specified in Item 4 of such schedule (other than the disposition of the Common Stock) and, within ten (10) Business
Days of being requested by the Company to advise it regarding the same, certifies to the Company that such Person acquired shares
of Common Stock in excess of 14.9% inadvertently or without knowledge of the terms of the Rights and who or which, together with
all Affiliates and Associates, thereafter does not acquire additional shares of Common Stock while the Beneficial Owner of 15% or
more of the shares of Common Stock then outstanding; provided, however, that if the Person requested to so certify
fails to do so within ten (10) Business Days, then such Person shall become an Acquiring Person immediately after such ten (10)
Business Day period. 

	  	        (c)    “Act” shall
mean the Securities Act of 1933, as amended and in effect on the date hereof. 

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

	  	        (e)    “Affiliate” and
“Associate” shall have the respective meanings assigned to such terms in Rule 12b-2 of the General Rules and Regulations
under the Exchange Act. 

	  	        (f)    “Agreement” shall
have the meaning set forth in the introduction hereof. 

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

	  	        (i)    which
such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has the right to acquire (whether such
right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding
(whether or not in writing) or upon the exercise of conversion rights, exchange rights, other rights, warrants 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 (as hereinafter defined) or (C)
securities issuable upon exercise of Rights from and after the occurrence of a Triggering Event which Rights 

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	  	were acquired by such Person or any of such Person’s
Affiliates or Associates prior to the Distribution Date (as hereinafter defined) or pursuant to Section 3(a) or Section 22 hereof
(the “Original Rights”) or pursuant to Section 11(i) hereof in connection with an adjustment made with respect to any
Original Rights; 

	  	        (ii)              which
such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has the right to vote or dispose of or
has “beneficial ownership” of (as determined pursuant to Rule 13d-3 of the General Rules and Regulations under the
Exchange Act), 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 (ii) 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 given in response to a public proxy or consent
solicitation made pursuant to, and in accordance with, the applicable provisions of the General Rules and Regulations under the
Exchange Act, and (B) is not reportable by such Person on Schedule 13D under the Exchange Act (or any comparable or successor
report); or 

	  	        (iii)              which
are beneficially owned, directly or indirectly, by any other Person (or any Affiliate or Associate thereof) with which such Person
(or any of such Person’s Affiliates or Associates) has any agreement, arrangement or understanding (whether or not in
writing), for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy as described in the proviso to
subparagraph (ii) of this paragraph (g)) or disposing of any voting securities of the Company; 

	  	provided, however, that nothing in this paragraph
(g) shall cause a Person engaged in business as an underwriter of securities to be the “Beneficial Owner” of, or to
“beneficially own,” any securities acquired through such person’s participation in good faith in a firm commitment
underwriting until the expiration of forty (40) days after the date of such acquisition, and then only if such securities continue
to be owned by such Person at such expiration of forty (40) days. 

	  	        (h)    “Board” shall
have the meaning set forth in the preamble hereof.  

	  	        (i)    “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 or executive order to close. 

	  	        (j)    “By-Laws” shall
mean the Amended and Restated By-Laws of the Company, as in effect on the date hereof and amended from time to time. 

	  	        (k)    “Certificate
of Incorporation” shall mean the Restated Certificate of Incorporation of the Company, dated as of November 23, 2004, as
amended from time to time. 

	  	        (l)    “Close
of business” on any given date shall mean 5:00 P.M., New York City time, on such date; provided, however, that
if such date is not a Business Day, it shall mean 5:00 P.M., New York City time, on the next succeeding Business Day. 

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	  	        (m)              “Common
Stock” shall mean the common stock, par value $5.00 per share, of the Company, except that “Common Stock” when used
with reference to 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. 

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

	  	        (o)              “Company” shall
have the meaning set forth in the introduction hereof. 

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

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

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

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

	  	        (t)              “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended and in effect on the date hereof. 

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

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

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

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

	  	        (y)              “Original
Rights” shall have the meaning set forth in Section 1(g)(i)           hereof.  

	  	        (z)              “Person” shall
mean any individual, firm, corporation, partnership, limited liability company, limited liability partnership, trust, syndicate or
other entity and includes, without limitation, an unincorporated group of persons who, by formal or informal agreement or
arrangement (whether or not in writing), have embarked on a common purpose or act. 

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	  	        (aa)              “Preferred
Stock” shall mean shares of Series A Junior Participating Preferred Stock, par value $1.00 per share, of the Company, and, to
the extent that there are not a sufficient number of shares of Series A Junior Participating Preferred Stock authorized to permit
the full exercise of the Rights, any other series of preferred stock of the Company designated for such purpose containing terms
substantially similar to the terms of the Series A Junior Participating Preferred Stock. 

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

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

	  	        (dd)              “Qualifying
Offer” shall have the meaning set forth in Section 11(a)(ii) hereof. 

	  	        (ee)              “Record
Date” shall have the meaning set forth in the preamble hereof. 

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

	  	        (gg)              “Rights” shall
have the meaning set forth in the preamble hereof. 

	  	        (hh)              “Rights
Agent” shall have the meaning set forth in the introduction hereof. 

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

	  	        (jj)              “Rights
Dividend Declaration Date” shall have the meaning set forth in the preamble hereof. 

	  	        (kk)              “Section
11(a)(ii) Event” shall mean any event described in Section 11(a)(ii) hereof. 

	  	        (ll)              “Section
11(a)(ii) Trigger Date” shall have the meaning set forth in Section 11(a)(iii) hereof. 

	  	        (mm)              “Section
13 Event” shall mean any event described in clauses (x), (y) or (z) of Section 13(a) hereof. 

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

	  	        (oo)              “Stock
Acquisition Date” shall mean the first date of public announcement (which, for purposes of this definition, shall include,
without limitation, a report filed or amended pursuant to Section 13(d) under the Exchange Act) by the Company or an Acquiring
Person that an Acquiring Person has become such other than pursuant to a Qualifying Offer. 

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

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

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

	  	        (ss)              “Triggering
Event” shall mean any Section 11(a)(ii) Event or any Section 13 Event. 

        Section 2.     Appointment
of Rights Agent.   The Company hereby appoints the Rights Agent to act as agent for the Company and the holders
of the Rights (who, in accordance with Section 3 hereof, shall prior to the Distribution Date also be the holders of the Common
Stock) in accordance with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may
from time to time appoint such co-rights agents as it may deem necessary or desirable. 

        Section 3.     Issuance
of Rights Certificates.  

	  	        (a)     Until
the earlier of (i) the close of business on the tenth (10th) day after the Stock Acquisition Date (or, if the tenth
(10th) day after the Stock Acquisition Date occurs before the Record Date, the close of business on the Record Date),
or (ii) the close of business on the tenth (10th) Business Day (or such later date as the Board shall determine) after
the date that a tender or exchange offer by any Person (other than the Company, any Subsidiary of the Company, any employee
benefit plan of the Company or of any Subsidiary of the Company, or any Person organized, appointed or established by the Company
for or pursuant to the terms of any such plan) 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, if upon consummation thereof, such Person would become an Acquiring Person,
in either instance other than pursuant to a Qualifying Offer (the earlier of (i) and (ii) being herein referred to as the
“Distribution Date”), (x) the Rights will be evidenced (subject to the provisions of paragraph (b) of this Section 3) by
the certificates for the Common Stock or, in the case of uncertificated shares, the balances indicated in the book-entry account
system of the transfer agent for the Common Stock registered in the names of the holders of the Common Stock (which shares of
Common Stock shall be deemed also to be certificates for Rights) 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 

6 

	  	Date, at the address of such holder shown on the records of the
Company, one or more rights certificates, in substantially the form of Exhibit B hereto (the “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)     Until
the Distribution Date, the Rights will be evidenced by the certificates for the Common Stock or, in the case of uncertificated
shares, the balances indicated in the book-entry account system of the transfer agent for the Common Stock, and the registered
holders of the Common Stock shall also be the registered holders of the associated Rights. Until the earlier of the Distribution
Date or the Expiration Date, the transfer of any shares of Common Stock in respect of which Rights have been issued shall also
constitute the transfer of the Rights associated with such shares of Common Stock. 

	  	        (c)     Rights
shall be issued in respect of all shares of Common Stock which 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.
Certificates representing such shares of Common Stock shall also be deemed to be certificates for Rights, and shall bear the
following legend if such certificates are issued after the Record Date but prior to the earlier of the Distribution Date or the
Expiration Date: 

	  	This certificate also evidences and entitles the holder hereof to
certain Rights as set forth in the Rights Agreement between Donaldson Company, Inc. (the “Company”) and Wells Fargo
Bank, N.A., a national banking association (the “Rights Agent”), dated as of January 27, 2006, as amended from time to
time (the “Rights Agreement”), the terms of which are hereby incorporated herein by reference and a copy of which is on
file at the principal offices of the Company. Under certain circumstances, as set forth in the Rights Agreement, such Rights will
be evidenced by separate certificates and will no longer be evidenced by this certificate. The Company 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 issued to, or held by, any Person
who is, was or becomes an Acquiring Person or any Affiliate or Associate thereof (as such terms are defined in the Rights
Agreement), whether currently held by or on behalf of such Person or by any subsequent holder, may become null and void.

	  	With respect to such certificates containing the foregoing legend,
until the earlier of (i) the Distribution Date or (ii) 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. 

7 

        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) shall each 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 on which the Rights may from time to time be listed, or to conform to
usage. Subject to the provisions of Section 11 and Section 22 hereof, the Rights Certificates, whenever distributed, shall be
dated as of the Record Date and on their face shall entitle the holders thereof to purchase such number of one one-thousandths of
a share of Preferred Stock as shall be set forth therein at the price set forth therein (such exercise price per one
one-thousandth of a share, 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), Section 11(i) or Section 22 hereof that represents Rights beneficially owned
by: (i) an Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of
any such Associate or Affiliate) who becomes a transferee after the Acquiring Person becomes such, or (iii) a transferee of an
Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with the Acquiring
Person becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the
Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with whom such Acquiring Person has any
continuing agreement, arrangement or understanding regarding the transferred Rights or (B) a transfer which the Board has
determined is part of a plan, arrangement or understanding which has as a primary purpose or effect the avoidance of Section 7(e)
hereof, and any Rights Certificate issued pursuant to Section 6 or Section 11 hereof upon transfer, exchange, replacement or
adjustment of any other Rights Certificate referred to in this sentence, shall contain (to the extent feasible) the following
legend: 

	  	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 may become null
and void in the circumstances specified in Section 7(e) of the Rights Agreement. 

        Section 5.     Countersignature
and Registration.  

	  	        (a)    The
Rights Certificates shall be executed on behalf of the Company by its Chairman of the Board, its President or any Vice President,
either manually or by facsimile signature, and shall have affixed thereto the Company’s seal or a facsimile 

8 

	  	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 Certificates 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 date of each of the Rights
Certificates. 

        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) and Section 14 hereof, at any time after the close of business on the Distribution
Date, and at or prior to the close of business on the Expiration Date, any Rights Certificate or Certificates (other than Rights
Certificates representing Rights that may have been exchanged pursuant to Section 24 hereof) may be transferred, split-up,
combined or exchanged for another Rights Certificate or Certificates, entitling the registered holder to purchase a like number of
one one-thousandths of a share 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 Certificates surrendered then entitles 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 Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender the Rights
Certificate or 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) or Affiliates or Associates thereof as
the Company shall reasonably request. Thereupon the Rights Agent shall, subject to Section 4(b), Section 7(e), 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 

9 

	  	require payment of a sum sufficient to cover any tax or
governmental charge that may be imposed in connection with any transfer, split-up, combination or exchange of Rights Certificates.

	  	        (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 execute and deliver a new Rights
Certificate of like tenor to the Rights Agent for countersignature and delivery to the registered owner in lieu of the Rights
Certificate so lost, stolen, destroyed or mutilated. 

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

	  	        (a)    Subject
to Section 7(e) hereof, at any time after the Distribution Date 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 upon surrender of the Rights
Certificate, with the form of election to purchase and the certificate on the reverse side thereof duly 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 one one-thousandths of a share of Preferred Stock (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 earlier of (i) 5:00
P.M., New York City time, on March 2, 2016, or such later date as may be established by the Board prior to the expiration of the
Rights (such date, as it may be extended by the Board, the (“Final Expiration Date”)), (ii) the time at which the Rights
are redeemed as provided in Section 23 hereof or (iii) the time at which the Rights may be exchanged as provided in Section 24
hereof (the earlier of (i), (ii) and (iii) being herein referred to as the “Expiration Date”). 

	  	        (b)    The
Purchase Price for each one one-thousandth of a share of Preferred Stock pursuant to the exercise of a Right initially shall be
$143.00, shall be subject to adjustment from time to time as provided in Section 11 and Section 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 duly
executed, accompanied by payment, with respect to each Right so exercised, of the Purchase Price per one one-thousandth of a 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 one one-thousandths of a share of Preferred Stock to be purchased and
the 

10 

	  	Company hereby irrevocably authorizes its transfer agent to comply
with all such requests, or (B) if the Company shall have elected to deposit the total number of shares of Preferred Stock issuable
upon exercise of the Rights hereunder with a depositary agent, requisition from the depositary agent depositary receipts
representing such number of one one-thousandths of a share 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) shall be made in cash or by certified bank check or bank draft
payable to the order of the Company. 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) 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 any 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 less than all the Rights evidenced thereby, a new Rights
Certificate evidencing 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 Section 11(a)(ii) Event, any Rights
beneficially owned by (i) an Acquiring Person or an Associate or Affiliate of an Acquiring Person, (ii) a transferee of an
Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee after the Acquiring Person becomes such, or
(iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or
concurrently with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer (whether or not
for consideration) from the Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with whom
the Acquiring Person has any continuing agreement, arrangement or understanding regarding the transferred Rights or (B) a transfer
which the Board has determined is part of a plan, arrangement or understanding which has as a primary purpose or effect the
avoidance of this Section 7(e), shall become null and void without any further action and no holder of such Rights shall have any
rights whatsoever with respect to such Rights, whether under any provision of this Agreement or otherwise. The Company shall use
all reasonable efforts to insure 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 any other Person as a result of its failure to make any determinations
with respect to an Acquiring Person or any of its Affiliates, Associates or transferees hereunder. 

11 

	  	        (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 cancelled form, or, if surrendered to the Rights Agent, shall be cancelled 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. In accordance with applicable
law and regulation, the Rights Agent shall maintain, in a retrievable database, electronic records of all cancelled or destroyed
rights certificates which have been cancelled or destroyed by the Rights Agent. The Rights Agent shall maintain such electronic
records or physical records for the time period required by applicable law and regulation. Upon written request of the Company,
the Rights Agent shall provide to the Company, copies of such electronic records or physical records relating to rights
certificates cancelled or destroyed by the Rights Agent. 

        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
and/or other securities or out of its authorized and issued shares held in its treasury), the number of shares of Preferred Stock
(and, following the occurrence of a Triggering Event, 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 the shares of Preferred Stock (and, following the occurrence of a Triggering Event, Common Stock and/or other securities)
issuable and deliverable upon the exercise of the Rights may be listed on any national securities exchange, the Company shall use
its best efforts to cause, from and after such time as the Rights become exercisable (but only to the extent that it is reasonably
likely that the Rights will be exercised), all shares reserved for such issuance to be listed on such exchange upon official
notice of issuance upon such exercise. 

12 

	  	        (c)    The
Company shall use its best efforts to (i) file, as soon as practicable following the earliest date after the first occurrence of a
Section 11(a)(ii) Event on which the consideration to be delivered by the Company upon exercise of the Rights has been determined
in accordance with Section 11(a)(iii) hereof, or as soon as required by law following the Distribution Date, a registration
statement under the Act, with respect to the securities purchasable upon exercise of the Rights on an appropriate form, (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 Act) until the earlier of (A) the
date as of which the Rights are no longer exercisable for such securities, and (B) the date of the expiration of the Rights. 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 ninety (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. 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 has been rescinded. In addition, if the
Company shall determine that a registration statement is required following the Distribution Date, the Company may temporarily
suspend the exercisability of the Rights until such time as a registration statement has been declared effective. 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 a 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 one one-thousandths of a
share of Preferred Stock (and, following the occurrence of a Triggering Event, Common Stock and/or other securities) delivered
upon exercise of Rights shall, at the time of delivery of such shares (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 which may be payable in respect of the issuance or delivery of the Rights Certificates and of any certificates for a
number of one one-thousandths of a share of Preferred Stock (or 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 which 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 one one-thousandths
of a share of Preferred Stock (or 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 one one-thousandths of a share of Preferred Stock (or 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 Certificates at the time of surrender) or until it has been
established to the Company’s satisfaction that no such tax is due. 

13 

        Section 10.     Preferred
Stock Record Date.   Each person in whose name any certificate for a number of one one-thousandths of a share
of Preferred Stock (or 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 fractional shares of Preferred Stock (or 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 (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 shall not be
entitled to any rights of a stockholder of the Company with respect to shares for which the Rights shall be exercisable,
including, without limitation, the right to vote, to receive dividends or other distributions or to exercise any preemptive
rights, and shall not be entitled to receive any notice of any proceedings of the 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 covered by each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this
Section 11. 

	  	        (a)    (i)   In
the event the Company shall at any time after the date of this Agreement (A) declare a dividend on the Preferred Stock payable in
shares of Preferred Stock, (B) subdivide the outstanding Preferred Stock, (C) combine the outstanding Preferred Stock into a
smaller number of shares, or (D) issue any shares of its capital stock in a reclassification of the Preferred Stock (including any
such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving
corporation), except as otherwise provided in this Section 11(a) 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, such holder would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision,
combination or reclassification. If an event occurs which would require an adjustment under both this Section 11(a)(i) and Section
11(a)(ii) hereof, the adjustment provided for in this Section 11(a)(i) shall be in addition to, and shall be made prior to, any
adjustment required pursuant to Section 11(a)(ii) hereof. 

14 

	  	        (ii)    In
the event that any Person shall, at any time after the Rights Dividend Declaration Date, become an Acquiring Person, unless the
event causing such Person to become an Acquiring Person is a transaction set forth in Section 13(a) hereof, or is an acquisition
of shares of Common Stock pursuant to a tender offer or an exchange offer for all outstanding shares of Common Stock at a price
and on terms determined by at least a majority of the members of the Board who are not officers of the Company and who are not
representatives, nominees, Affiliates or Associates of an Acquiring Person, after receiving advice from one or more investment
banking firms, to be (a) at a price which is fair to stockholders and not inadequate (taking into account all factors which such
members of the Board deem relevant, including, without limitation, prices which 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 (a “Qualifying Offer”), then, promptly following the occurrence of such event, proper provision shall
be made so that each holder of a Right (except as provided below and in Section 7(e) hereof) shall thereafter have the right to
receive, upon exercise thereof at the then current Purchase Price in accordance with the terms of this Agreement, in lieu of a
number of one one-thousandths of a share of Preferred Stock, such number of shares of Common Stock of the Company as shall equal
the result obtained by (x) multiplying the then current Purchase Price by the then number of one one-thousandths of a share of
Preferred Stock for which a Right was exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event, and (y)
dividing that product (which, following such first occurrence, shall thereafter be referred to as the Purchase Price for each
Right and for all purposes of this Agreement) by 50% of the Current Market Price (determined pursuant to Section 11(d) hereof) per
share of Common Stock on the date of such first occurrence (such number of shares, the “Adjustment Shares”). 

	  	        (iii)    In
the event that the number of shares of Common Stock which 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 (A)
determine the value of the Adjustment Shares issuable upon the exercise of a Right (the “Current Value”), and (B) with
respect to each Right (subject to Section 7(e) hereof), make adequate provision to substitute for the Adjustment Shares, upon the
exercise of a Right 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, which the Board has deemed to have essentially the same value or economic rights as shares of Common
Stock (such shares or units of stock of preferred stock being referred to as “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 (less the amount of any reduction in the Purchase Price), where such aggregate value has been determined by the
Board based upon the advice of a nationally recognized investment banking firm selected by the Board; provided,
however, that if the Company shall not have made adequate provision to deliver value pursuant to clause (B) above within
thirty (30) days following the later of (x) the first 

15 

	  	occurrence of a Section 11(a)(ii) 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
“Section 11(a)(ii) 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. For purposes of the preceding sentence, the
term “Spread” shall mean the excess of (i) the Current Value over (ii) the Purchase Price. If the Board determines 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 thirty (30) day period set forth above may be extended to the extent necessary, but not more than ninety
(90) days after the Section 11(a)(ii) Trigger Date, in order that the Company may seek shareholder approval for the authorization
of such additional shares (such thirty (30) day period, as it may be extended, is herein called the “Substitution
Period”). To the extent that the Company determines that action should be taken pursuant to the first and/or third sentences
of this Section 11(a)(iii), the Company (1) shall provide, subject to Section 7(e) hereof, that such action shall apply uniformly
to all outstanding Rights, and (2) may suspend the exercisability of the Rights until the expiration of the Substitution Period in
order to seek such shareholder approval for such 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 each Adjustment Share shall be the Current Market Price per share of the Common Stock on the Section 11(a)(ii) Trigger
Date and the per share or per unit value of any Common Stock Equivalent shall be deemed to equal the Current Market Price per
share of the Common Stock on such date. 

	  	        (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 forty-five (45) calendar days after such record date)
Preferred Stock (or shares having 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 Equivalent Preferred Stock) less than the Current Market Price (as determined pursuant to Section 11(d) hereof)
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 which 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 

16 

	  	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, 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 or warrants are not
so issued, the Purchase Price shall be adjusted to be the Purchase Price which would then be in effect if such record date had not
been fixed. 

	  	        (c)    In
case the Company shall fix a record date for a distribution to all holders of Preferred Stock (including any such distribution
made in connection with a consolidation or merger in which the Company is the continuing corporation) of 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 evidences of indebtedness, or of
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 (as determined pursuant to Section 11(d) hereof) per share of
Preferred Stock on such record date, less the fair market value (as determined in good faith by the Board, 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) 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 (as determined
pursuant to Section 11(d) hereof) per share of Preferred Stock. Such adjustments shall be made successively whenever such a record
date is fixed, and in the event that such distribution is not so made, the Purchase Price shall be adjusted to be the Purchase
Price which would have been in effect if such record date had not been fixed. 

	  	        (d)     (i)    For
the purpose of any computation hereunder, other than computations made pursuant to Section 11(a)(iii) hereof, the “Current
Market Price” per share of Common Stock on any date shall be deemed to be the average of the daily closing prices per share
of such Common Stock for the thirty (30) consecutive Trading Days immediately prior to such date, and for purposes of computations
made pursuant to Section 11(a)(iii) hereof, the Current Market Price per share of Common Stock on any date shall be deemed to be
the average of the daily closing prices per share of such Common Stock for the ten (10) consecutive Trading Days immediately
following such date; provided, however, that in the event that the Current Market Price per share of the Common
Stock is determined during a period following the announcement by the issuer of such Common Stock of (A) a dividend or
distribution on such Common Stock payable in shares of such Common Stock or securities convertible into shares of such Common
Stock (other than the Rights), or (B) any subdivision, combination or reclassification of such Common Stock, 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 

17 

	  	commencement of the requisite thirty (30) Trading Day or ten (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. The closing price for each day shall be the last sale price, regular way, or, in case no such
sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the
principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the New York Stock
Exchange or, if the shares of Common Stock are not listed or admitted to trading on the New York Stock Exchange, as reported in
the principal consolidated transaction reporting system with respect to securities listed on the principal national securities
exchange on which the shares of Common Stock are listed or admitted to trading or, if the shares of Common Stock are not listed or
admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid
and low asked prices in the over-the-counter market, as reported by the National Association of Securities Dealers, Inc. Automated
Quotation System (“NASDAQ”) or such other system then in use, or, if on any such date the shares of Common Stock are not
quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker
making a market in the Common Stock selected by the Board. If on any such date no market maker is making a market in the Common
Stock, the fair value of such shares on such date as determined in good faith by the Board shall be used. The term “Trading
Day” shall mean a day on which the principal national securities exchange on which the shares of Common Stock are listed or
admitted to trading is open for the transaction of business or, if the shares of Common Stock are not listed or admitted to
trading on any national securities exchange, a Business Day. If the Common Stock is not publicly held or not so listed or traded,
Current Market Price per share shall mean the fair value per share as determined in good faith by the Board, whose determination
shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes. 

	  	        (ii)    For
the purpose of any computation hereunder, the Current Market Price per share of Preferred Stock shall be determined in the same
manner as set forth above for the Common Stock in clause (i) of this Section 11(d) (other than the last sentence thereof). If the
Current Market Price per share of Preferred Stock cannot be determined in the manner provided above or if the Preferred Stock is
not publicly held or listed or traded in a manner described in clause (i) of this Section 11(d), the Current Market Price per
share of Preferred Stock shall be conclusively deemed to be an amount equal to 1,000 (as such number may be appropriately adjusted
for such events as stock splits, stock dividends and recapitalizations with respect to the Common Stock occurring after the date
of this Agreement) multiplied by the Current Market Price per share of the Common Stock. If neither the Common Stock nor the
Preferred Stock is publicly held or so listed or traded, Current Market Price per share of the Preferred Stock shall mean the fair
value per share as determined in good faith by the Board, whose determination shall be described in a statement filed with the
Rights Agent and shall be conclusive for all purposes. 

	  	        (e)    Anything
herein to the contrary notwithstanding, no adjustment in the Purchase Price shall be required unless such adjustment would require
an increase or decrease of at least one percent (1%) in the Purchase Price; provided, however, that any adjustments
which by reason of this Section 11(e) are not required to be made shall be 

18 

	  	carried forward and taken into account in any subsequent
adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest ten-thousandth of a share
of Common Stock or other share or one-millionth of a share of Preferred Stock, as the case may be. Notwithstanding the first
sentence of this Section 11(e), any adjustment required by this Section 11 shall be made no later than the earlier of (i) three
(3) years from the date of the transaction which mandates such adjustment, or (ii) the Expiration Date. 

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

	  	        (h)    Unless
the Company shall have exercised its election as provided in Section 11(i), upon each adjustment of the Purchase Price as a result
of the calculations made in Sections 11(b) and (c), each Right outstanding immediately prior to the making of such adjustment
shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of one one-thousandths of a share of
Preferred Stock (calculated to the nearest one-millionth) obtained by (i) multiplying (x) the number of one one-thousandths of a
share covered by a Right immediately prior to this adjustment, by (y) the Purchase Price in effect immediately prior to such
adjustment of the Purchase Price, and (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 one one-thousandths of a share 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 one one-thousandths of
a share of Preferred Stock for which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior
to such adjustment of the number of Rights shall become that number of Rights (calculated to the nearest one-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, 

19 

	  	but, if the Rights Certificates have been issued, shall be at
least ten (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 one one-thousandths of a share 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 one one-thousandths of a share and the number of one one-thousandths of a share which 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 stated value, if any, of the number of
one one-thousandths of a share of Preferred Stock issuable upon exercise of the Rights, the Company shall take any corporate
action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue fully paid
and nonassessable such number of one one-thousandths of a share of Preferred Stock at such adjusted Purchase Price. 

	  	        (l)    In
any case in which this Section 11 shall require that an adjustment in the Purchase Price be made effective as of a record date for
a specified event, the Company may elect to defer until the occurrence of such event the issuance to the holder of any Right
exercised after such record date the number of one one-thousandths of a share of Preferred Stock and other capital stock or
securities of the Company, if any, issuable upon such exercise over and above the number of one one-thousandths of a share 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 in their good faith judgment the
Board shall determine to be advisable in order that any (i) consolidation or subdivision of the Preferred Stock, (ii) issuance
wholly for cash of any 

20 

	  	shares of Preferred Stock at less than the Current Market Price,
(iii) issuance wholly for cash of shares of Preferred Stock or securities which by their terms are convertible into or
exchangeable for shares of Preferred Stock, (iv) stock dividends or (v) issuance of rights, options or warrants referred to in
this Section 11, hereafter made by the Company to holders of its Preferred Stock shall not be taxable to such stockholders.

	  	        (n)    The
Company covenants and agrees that it shall not, at any time after the Distribution Date, (i) consolidate with any other Person
(other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof), (ii) merge with or into any
other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof), or (iii) sell or
transfer (or permit any Subsidiary to sell or transfer), in one transaction, or a series of related transactions, assets, cash
flow or earning power aggregating more than 50% of the assets, cash flow or earning power of the Company and its Subsidiaries
(taken as a whole) to any other Person or Persons (other than the Company and/or any of its Subsidiaries in one or more
transactions each of which complies with Section 11(o) hereof), if (x) at the time of or immediately after such consolidation,
merger or sale there are any rights, warrants or other instruments or securities outstanding or agreements in effect which would
substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights or (y) prior to, simultaneously
with or immediately after such consolidation, merger or sale, the shareholders of the Person who constitutes, or would constitute,
the “Principal Party” for purposes of Section 13(a) hereof shall have received a distribution of Rights previously owned
by such Person or any of its Affiliates and Associates. 

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

	  	        (p)    Anything
in this Agreement to the contrary notwithstanding, in the event that the Company shall at any time after the Rights Dividend
Declaration 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, or (iii) combine the outstanding shares of Common
Stock into a smaller number of shares, the number of Rights associated with each share of Common Stock then outstanding, or issued
or delivered thereafter but prior to the Distribution Date, shall be proportionately adjusted so that the number of Rights
thereafter associated with each share of Common Stock following any such event shall equal the result obtained by multiplying the
number of Rights associated with each share of Common Stock immediately prior to such event by a fraction the numerator 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. 

21 

        Section 12.    Certificate
of Adjusted Purchase Price or Number of Shares.   Whenever an adjustment is made as provided in Section 11 and
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 Preferred
Stock and the Common Stock, a copy of such certificate and (c) if a Distribution Date has occurred, mail a brief summary thereof
to each holder of a Rights Certificate. 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, Cash Flow or Earning Power. 

	  	        (a)    In
the event that, following the Stock Acquisition Date, directly or indirectly, (x) the Company shall consolidate with, or merge
with and into, any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o)
hereof), and the Company shall not be the continuing or surviving corporation of such consolidation or merger, (y) any Person
(other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof) 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 outstanding shares of Common Stock shall be changed into
or exchanged for stock or other securities of any other Person or cash or any other property, or (z) the Company shall sell or
otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer), in one transaction or a series of
related transactions, assets, cash flow or earning power aggregating more than 50% of the assets, cash flow or earning power of
the Company and its Subsidiaries (taken as a whole) to any Person or Persons (other than the Company or any Subsidiary of the
Company in one or more transactions each of which complies 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) 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, such number of validly authorized and issued, fully paid, non-assessable and
freely tradeable shares of Common Stock of the Principal Party (as such term is hereinafter defined), not subject to any liens,
encumbrances, rights of first refusal or other adverse claims, as shall be equal to the result obtained by (1) multiplying the
then current Purchase Price by the number of one one-thousandths of a share of Preferred Stock for which a Right is exercisable
immediately prior to the first occurrence of a Section 13 Event (or, if a Section 11(a)(ii) Event has occurred prior to the first
occurrence of a Section 13 Event, multiplying the number of such one one-thousandths of a share for which a Right was exercisable
immediately prior to the first occurrence of a Section 11(a)(ii) Event by the Purchase Price in effect immediately prior to such
first occurrence of a Section 11(a)(ii) Event), and (2) dividing that product (which, following the first occurrence of a Section
13 Event, shall be referred to as the “Purchase Price” for each Right and for all purposes of this Agreement) by 50% of
the Current Market Price (determined pursuant to Section 11(d)(i) hereof) per share of the Common Stock of such Principal Party on
the date of consummation of such Section 13 Event; (ii) such Principal Party shall thereafter be liable for, and shall assume, by
virtue of such Section 13 Event, all the obligations and duties of the Company pursuant to this Agreement; (iii) the term
“Company” shall thereafter be deemed to refer to such Principal Party, it being 

22 

	  	specifically intended that the provisions of Section 11 hereof
shall apply only to such Principal Party following the first occurrence of a Section 13 Event; (iv) such Principal Party shall
take such steps (including, but not limited to, the reservation of a sufficient number of shares of its Common Stock) in
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 (v) the provisions of Section 11(a)(ii) hereof shall be of no effect following the first occurrence of any
Section 13 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), 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, and if no
securities are so issued, the Person that is the other party to such merger or consolidation; 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, cash flow or earning power transferred pursuant to such transaction or transactions; 

	  	provided, however, that in any such case, (1) if the
Common Stock of such Person is not at such time and has not been continuously over the preceding twelve (12) month period
registered under Section 12 of the Exchange Act, and such Person is a direct or indirect Subsidiary of another Person the Common
Stock of which is and has been so registered, “Principal Party” shall refer to such other Person; and (2) in case such
Person is a Subsidiary, directly or indirectly, of more than one Person, the Common Stock of two or more 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. 

	  	        (c)    The
Company shall not consummate any such consolidation, merger, sale or transfer unless the Principal Party shall have a sufficient
number of authorized shares of its Common Stock which 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 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 any consolidation, merger or sale of assets
mentioned in paragraph (a) of this Section 13, the Principal Party will: 

23 

	  	        (i)    prepare
and file a registration statement under the 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 Act)
until the Expiration Date; 

	  	        (ii)    take
all such other action as may be necessary to enable the Principal Party to issue the securities purchasable upon exercise of the
Rights, including but not limited to the registration or qualification of such securities under all requisite securities laws of
jurisdictions of the various states and the listing of such securities on such exchanges and trading markets as may be necessary
or appropriate; and 

	  	        (iii)    deliver
to holders of the Rights historical financial statements for the Principal Party and each of its Affiliates which 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 Section 13 Event shall occur at any time
after the occurrence of a Section 11(a)(ii) Event, the Rights which 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 subparagraphs (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 Qualifying 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 shares of Common Stock
whose shares were purchased pursuant to such Qualifying 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
Qualifying 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 which evidence fractional Rights. In lieu of such fractional Rights, the Company
shall pay 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 current market value of a whole Right. For purposes of this Section
14(a), the current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to
the date on which such fractional Rights would have been otherwise issuable. The closing price of the Rights for any day shall be
the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked
prices, regular way, in either case as reported in the principal 

24 

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

	  	        (b)    The
Company shall not be required to issue fractions of shares of Preferred Stock (other than fractions which are integral multiples
of one one-thousandth of a share of Preferred Stock) upon exercise of the Rights or to distribute certificates which evidence
fractional shares of Preferred Stock (other than fractions which are integral multiples of one one-thousandth of a share of
Preferred Stock). In lieu of fractional shares of Preferred Stock that are not integral multiples of one one-thousandth of a share
of Preferred Stock, the Company 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 current market value of one one-thousandth of a share of
Preferred Stock. For purposes of this Section 14(b), the current market value of one one-thousandth of a share of Preferred Stock
shall be one one-thousandth of the closing price of a share of Preferred Stock (as determined pursuant to Section 11(d)(ii)
hereof) for the Trading Day immediately prior to the date of such exercise. 

	  	        (c)    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 which evidence 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 current market value of one (1) share of Common Stock. For purposes
of this Section 14(c), the current market value of one share of Common Stock shall be the closing price per share of Common Stock
(as determined pursuant to Section 11(d)(i) hereof) on the Trading Day immediately prior to the date of such exercise. 

	  	        (d)    The
holder of a Right by the acceptance of the Rights 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 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 any registered
holder of any Rights Certificate (or, prior to the Distribution Date, of the Common Stock), without 

25 

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. 

        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 be transferable only in connection with the transfer of Common Stock; 

	  	        (b)    after
the Distribution Date, the Rights Certificates are transferable only on the registry books of the Rights Agent if surrendered at
the principal office or offices of the Rights Agent designated for such purposes, duly endorsed or accompanied by a proper
instrument of transfer and with the appropriate forms and certificates 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 or, in the case of uncertificated shares,
the associated balance indicated in the book-entry account system of the transfer agent for the Common Stock) 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 or, in the case of uncertificated shares, the associated balance indicated
in the book-entry account system of the transfer agent for the Common Stock, made by anyone other than the Company or the Rights
Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent, subject to the last sentence of Section 7(e)
hereof, shall be required to 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. 

26 

        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 one one-thousandths of a share of Preferred
Stock or any other securities of the Company which may at any time be issuable on 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 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
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. 

	  	        (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 Common Stock or,
in the case of uncertificated shares, the associated balance indicated in the book-entry account system of the transfer agent for
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 to be genuine and
to be signed, executed and, where necessary, verified or acknowledged, by the proper Person or Persons. 

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

	  	        (a)    Any
legal business entity into which the Rights Agent or any successor Rights Agent may be merged or with which it may be
consolidated, or any legal business entity resulting from any merger or consolidation to which the Rights Agent or any successor
Rights Agent shall be a party, or any legal business entity succeeding to the corporate trust, stock transfer or other shareholder
services 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 legal business entity would be eligible for appointment as a successor Rights Agent
under the provisions of Section 21 hereof. In 

27 

	  	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, the identity of any Acquiring Person and the determination of Current Market Price) be
proven 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 proven and established by a certificate
signed by the Chairman of the Board, 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 negligence, bad faith or willful misconduct. 

	  	        (d)    The
Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in
the 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. 

28 

	  	        (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, Section 13 or Section 24 hereof or responsible for the manner, method or amount of any such adjustment
or the ascertaining of the existence of facts that would require any such adjustment (except with respect to the exercise of
Rights evidenced by Rights Certificates after actual notice 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 Common Stock or Preferred Stock to
be issued pursuant to this Agreement or any Rights Certificate or as to whether any shares of Common Stock or Preferred Stock
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 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 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, default,
neglect or misconduct of any such attorneys or agents or for any loss to the Company resulting from any such act, default, neglect
or misconduct; provided, however, reasonable care was exercised in the selection and continued employment thereof.

29 

	  	        (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 thereof, the Rights Agent shall not take any further action with respect to such requested exercise
or transfer without first consulting with the Company. 

        Section 21.     Change
of Rights Agent.   The Rights Agent or any successor rights agent may resign and be discharged from its duties
under this Agreement upon thirty (30) days’ notice in writing mailed to the Company, and to each transfer agent of the Common
Stock and Preferred Stock, by registered or certified mail, and, if such resignation occurs after the Distribution Date, to the
registered holders of the Rights Certificates by first-class mail. The Company may remove the Rights Agent or any successor Rights
Agent upon thirty (30) days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and
to each transfer agent of the Common Stock and Preferred Stock, by registered or certified mail, and, if such removal occurs after
the Distribution Date, to the registered holders of the Rights Certificates by first-class mail. If the Rights Agent shall resign
or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor to the Rights Agent. If the
Company shall fail to make such appointment within a period of thirty (30) days after giving notice of such removal or after it
has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of
a Rights Certificate (who shall, with such notice, submit his Rights Certificate for inspection by the Company), then any
registered holder of any Rights Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights
Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be (a) a legal business entity
organized and doing business under the laws of the United States or of the State of New York or of any other state of the United
States, in good standing, having an office in the State of New York, which is authorized under such laws to exercise corporate
trust, stock transfer or shareholder services powers and which has at the time of its appointment as Rights Agent a combined
capital and surplus of at least $50,000,000 or (b) an affiliate of a legal business entity described in clause (a) of this
sentence. After appointment, the successor rights agent shall be vested with the same powers, rights, duties and responsibilities
as if it had been originally named as rights agent without further act or deed; but the predecessor rights agent shall deliver and
transfer to the successor rights agent any property at the time held by it hereunder, and execute and deliver any further
assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment, the
Company shall file notice thereof in writing with the predecessor rights agent and each transfer agent of the Common Stock and the
Preferred Stock, and, if such appointment occurs after the Distribution Date, 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, 

30 

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 the
Board 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 redemption or
expiration of the Rights, 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 as of the Distribution Date, or upon the exercise,
conversion or exchange of securities hereinafter issued by the Company, and (b) may, in any other case, if deemed necessary or
appropriate by the Board, 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 may, at its option, at any time prior to the earlier of (i) the close of business on the tenth (10th) day
following the Stock Acquisition Date (or, if the Stock Acquisition Date shall have occurred prior to the Record Date, the close of
business on the tenth (10th) day following the Record Date), or (ii) the Final Expiration Date, direct the Company to,
and if so directed, the Company shall, redeem all but not less than all of the then outstanding Rights at a redemption price of
$0.001 per Right, as such amount may be appropriately adjusted to reflect any stock split, stock dividend or similar transaction
occurring after the date hereof (such redemption price being hereinafter referred to as the “Redemption Price”).
Notwithstanding anything contained in this Agreement to the contrary, the Rights shall not be exercisable after the first
occurrence of a Section 11(a)(ii) 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. 

	  	        (b)    Immediately
upon the action of the Board ordering the redemption of the Rights, evidence of which shall have been 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 action of
the Board ordering the redemption of the Rights, the Company shall give notice of such redemption to the Rights 

31 

	  	Agent and the 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 transfer agent for the Common Stock. Any notice which is mailed in
the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption
will state the method by which the payment of the Redemption Price will be made. 

        Section 24.     Exchange.  

	  	        (a)    The
Board may, at its option, at any time after any Person becomes an Acquiring Person, exchange all or part of the then outstanding
and exercisable Rights (which shall not include Rights that have become void pursuant to the provisions of Section 7(e) hereof)
for shares of Common Stock at an exchange ratio of one share of Common Stock per Right, appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date hereof (such exchange ratio being hereinafter referred
to as the “Exchange Ratio”). Notwithstanding the foregoing, the Board shall not be empowered to effect such exchange at
any time after any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan of the Company or any
such Subsidiary, or any entity holding Common Stock for or pursuant to the terms of any such plan), together with all Affiliates
and Associates of such Person, becomes the Beneficial Owner of fifty percent (50%) or more of the Common Stock then outstanding.

	  	        (b)    Immediately
upon the action of the Board ordering the exchange of any Rights pursuant to subsection (a) of this Section 24 and without any
further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder
of such Rights shall be to receive that number of shares of Common Stock equal to the number of such Rights held by such holder
multiplied by the Exchange Ratio. The Company shall promptly give public notice of any such exchange; 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 holders of such Rights at their last addresses as they
appear upon the registry books of the Rights Agent. Any notice which is mailed in the manner herein provided shall be deemed
given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which the exchange of
the Common Stock for Rights will be effected and, in the event of any partial exchange, the number of Rights which will be
exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which have become void
pursuant to the provisions of Section 7(e) hereof) held by each holder of Rights. 

	  	        (c)    In
any exchange pursuant to this Section 24, the Company, at its option, may substitute shares of Preferred Stock (or Equivalent
Preferred Stock) for shares of Common Stock exchangeable for Rights, at the initial rate of one one-thousandth of a share of
Preferred Stock (or Equivalent Preferred Stock) for each share of Common Stock, as appropriately adjusted to reflect stock splits,
stock dividends and other similar transactions after the date hereof. 

32 

	  	        (d)    In
the event that there shall not be sufficient shares of Common Stock issued but not outstanding or authorized but unissued to
permit any exchange of Rights as contemplated in accordance with this Section 24, the Company shall take all such action as may be
necessary to authorize additional shares of Common Stock for issuance upon exchange of the Rights. 

	  	        (e)    The
Company shall not be required to issue fractions of shares of Common Stock or to distribute certificates which evidence fractional
shares of Common Stock. In lieu of such fractional shares of Common Stock, there shall be paid to the registered holders of the
Rights Certificates with regard to which such fractional share of Common Stock would otherwise be issuable, an amount in cash
equal to the same fraction of the current market value of a whole share of Common Stock. For the purposes of this subsection (e),
the current market value of a whole share of Common Stock shall be the closing price of a share of Common Stock (as determined
pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of exchange pursuant
to this Section 24. 

        Section 25.     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 Subsidiary of the Company in a transaction which complies with Section 11(o) hereof), or to
effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one
transaction or a series of related transactions, of more than fifty percent (50%) of the assets, cash flow or earning power of the
Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company and/or any of its
Subsidiaries in one or more transactions each of which complies with Section 11(o) 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 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, 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 twenty (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 twenty (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. 

33 

	  	        (b)    In
case any of the events set forth in Section 11(a)(ii) hereof shall occur, then, in any such case, (i) the Company shall as soon as
practicable thereafter give to each holder of a Rights Certificate, to the extent feasible and 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) 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 by the Rights Agent with the Company) as follows: 

	  	Donaldson Company, Inc.

1400 West 94th Street

Minneapolis, Minnesota 55431

Attention: Corporate Secretary 

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 by
the Rights Agent with the Company) as follows: 

	  	Wells Fargo Bank, N.A.

161 North Concord Exchange

South St. Paul, MN 55075

Attention: Manager of Account Management 

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
shares of Common Stock) shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder
at the address of such holder as shown on the registry books of the Company. 

        Section 27.     Supplements
and Amendments.   Prior to the Distribution Date, the Company and the Rights Agent shall, if the Company so
directs, supplement or amend any provision of this Agreement without the approval of any holders of shares of Common Stock. From
and after the Distribution Date, the Company and the Rights Agent shall, if the Company so directs, supplement or amend this
Agreement without the approval of any holders of Rights Certificates in order to (i) cure any ambiguity, (ii) correct or
supplement any provision contained herein which may be defective or inconsistent with any other provisions herein, (iii) shorten
or lengthen any time period hereunder or (iv) change or supplement the provisions hereunder in any manner which the Company may
deem necessary or desirable and which shall not adversely affect the interests of the holders of Rights Certificates (other than
an Acquiring Person or an Affiliate or Associate of an 

34 

Acquiring Person). 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. Notwithstanding anything herein to the contrary, this Agreement may
not be amended (other than pursuant to clauses (i) or (ii) of the preceding sentence) at a time when the Rights are not
redeemable. 

        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 Common Stock or any other class of capital stock outstanding at any particular time, including for purposes of
determining the particular percentage of such outstanding shares of Common Stock of which any Person is the Beneficial Owner,
shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange
Act. The Board shall have the exclusive power and authority to administer this Agreement and to exercise all rights and powers
specifically granted to the Board or to the Company, or as may be necessary or advisable in the administration of this Agreement,
including, without limitation, the right and power to (i) interpret the provisions of this Agreement, and (ii) make all
determinations deemed necessary or advisable for the administration of this Agreement (including a determination to redeem or not
redeem the Rights or to amend the Agreement). All such actions, calculations, interpretations and determinations (including, for
purposes of clause (y) below, all omissions with respect to the foregoing) which are done or made by the Board in good faith,
shall (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all other parties, and
(y) not subject the Board, or any of the directors on the Board, 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 determines in its good faith judgment that severing the
invalid language from this Agreement would adversely affect the purpose or effect of this Agreement, the right of redemption set
forth in Section 23 

35 

hereof shall be reinstated and shall not expire until the close of business
on the tenth (10th) day following the date of such determination by the Board. Without limiting the foregoing, if any
provision requiring a specific group of directors to act is held by any court of competent jurisdiction or other authority to be
invalid, void or unenforceable, such determination shall be made by the Board in accordance with applicable law and the
Company’s Certificate of Incorporation and By-Laws. 

        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. 

36 

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

	Attest: 	 	DONALDSON COMPANY, INC. 
	 
	By    	/s/   Norman Linnell 
	    	By    	/s/   Thomas R. VerHage 

	 	Name:   Norman Linnell
Title:     Vice-President 	 	 	Name:   Thomas R. VerHage
Title:     Vice-President &
                Chief Financial Officer 
	 
	Attest: 	 	WELLS FARGO BANK, N.A. 
	 
	By    	/s/   John Baker 
	    	By    	/s/   Darren Larson 

	 	Name:   John Baker
Title:     Vice-President 	 	 	Name:   Darren Larson
Title:     Vice-President 
	 

  

Exhibit A  

FORM OF

CERTIFICATE OF DESIGNATION, PREFERENCES

AND RIGHTS OF SERIES A JUNIOR

PARTICIPATING PREFERRED STOCK

OF

DONALDSON COMPANY, INC. 

__________________________________  

Pursuant to Section 151 of the

General Corporation Law of the State of Delaware 

__________________________________  

        The undersigned officers of
Donaldson Company, Inc., a corporation organized and existing under the General Corporation Law of the State of Delaware, in
accordance with the provisions of Section 103 thereof, DO HEREBY CERTIFY: 

        That pursuant to the
authority conferred upon the Board of Directors by the Restated Certificate of Incorporation of the said Corporation, the said
Board of Directors on January 27, 2006, adopted the following resolution creating a series of 120,000 shares of Preferred Stock
designated as Series A Junior Participating Preferred Stock: 

        RESOLVED, that pursuant to
the authority vested in the Board of Directors of this Corporation in accordance with the provisions of its Restated Certificate
of Incorporation, a series of Preferred Stock of the Corporation be and it hereby is created, and that the designation and amount
thereof and the voting powers, preferences and relative, participating, optional and other special rights of the shares of such
series, and the qualifications, limitations or restrictions thereof are as follows: 

        Section 1.     Designation
and Amount.   The shares of such series shall be designated as “Series
A Junior Participating Preferred Stock” and the number of shares constituting such
series shall be 120,000.  

        Section 2.     Dividends and Distributions.  

	  	        (A)    The
holders of shares of Series A Junior Participating Preferred Stock shall be entitled to receive, when, as and if declared by the
Board of Directors out of funds legally available for the purpose, quarterly dividends payable in cash on the last day of March,
June, September and December in each year (each such date being referred to herein as a “Quarterly Dividend Payment
Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of
Series A 

A-1 

	  	Junior Participating Preferred Stock, in an amount per share
(rounded to the nearest cent) equal to the greater of (a) $10.00 or (b) subject to the provision for adjustment hereinafter set
forth, 1,000 times the aggregate per share amount of all cash dividends, 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 or a subdivision
of the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common Stock, par value $5.00 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
Junior Participating Preferred Stock. In the event the Corporation shall at any time after January 27, 2006 (the “Rights
Declaration Date”) (i) declare any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding
Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the amount to
which holders of shares of Series A Junior Participating Preferred Stock were entitled immediately prior to such event under
clause (b) of the preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of which is the
number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of
Common Stock that were outstanding immediately prior to such event. 

	  	        (B)    The
Corporation shall declare a dividend or distribution on the Series A Junior Participating Preferred Stock as provided in Paragraph
(A) above immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of
Common Stock); provided that, in the event no dividend or distribution shall have been declared on the Common Stock during the
period between any Quarterly Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, a dividend of $10.00
per share on the Series A Junior Participating Preferred Stock shall nevertheless be payable on such subsequent Quarterly Dividend
Payment Date. 

	  	        (C)    Dividends
shall begin to accrue and be cumulative on outstanding shares of Series A Junior Participating Preferred Stock from the Quarterly
Dividend Payment Date next preceding the date of issue of such shares of Series A Junior Participating 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 Junior Participating
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 Junior Participating 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 Junior Participating 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.

A-2 

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

	  	        (A)    Subject
to the provision for adjustment hereinafter set forth, each share of Series A Junior Participating Preferred Stock shall entitle
the holder thereof to 1,000 votes on all matters submitted to a vote of the stockholders of the Corporation. In the event the
Corporation shall at any time after the Rights Declaration Date (i) declare any dividend on Common Stock payable in shares of
Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of
shares, then in each such case the number of votes per share to which holders of shares of Series A Junior Participating 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 Junior Participating Preferred Stock and the holders of
shares of Common Stock shall vote together as one class on all matters submitted to a vote of stockholders of the Corporation.

	  	        (C)    (i)    If
at any time dividends on any Series A Junior Participating Preferred Stock shall be in arrears in an amount equal to six (6)
quarterly dividends thereon, the occurrence of such contingency shall mark the beginning of a period (herein called a
“default period”) which shall extend until such time when all accrued and unpaid dividends for all previous quarterly
dividend periods and for the current quarterly dividend period on all shares of Series A Junior Participating Preferred Stock then
outstanding shall have been declared and paid or set apart for payment. During each default period, all holders of Preferred Stock
(including holders of the Series A Junior Participating Preferred Stock) with dividends in arrears in an amount equal to six (6)
quarterly dividends thereon, voting as a class, irrespective of series, shall have the right to elect two (2) directors. 

	  	        (ii)    During
any default period, such voting right of the holders of Series A Junior Participating Preferred Stock may be exercised initially
at a special meeting called pursuant to subparagraph (iii) of this Section 3(C) or at any annual meeting of stockholders, and
thereafter at annual meetings of stockholders, provided that such voting right shall not be exercised unless the holders of ten
percent (10%) in number of shares of Preferred Stock outstanding shall be present in person or by proxy. The absence of a quorum
of the holders of Common Stock shall not affect the exercise by the holders of Preferred Stock of such voting right. At any
meeting at which the holders of Preferred Stock shall exercise such voting right initially during an existing default period, they
shall have the right, voting as a class, to elect directors to fill such vacancies, if any, in the Board of Directors as may then
exist up to two (2) directors or, if such right is exercised at an annual meeting, to elect two (2) directors. If the number which
may be so elected at any special meeting does not amount to the required number, the holders of the Preferred Stock shall have the
right to make such increase in the number of directors as shall be necessary to permit the election by them of the required
number. After the holders of the Preferred 

A-3 

	  	Stock shall have exercised their right to elect directors in any
default period and during the continuance of such period, the number of directors shall not be increased or decreased except by
vote of the holders of Preferred Stock as herein provided or pursuant to the rights of any equity securities ranking senior to or
pari passu with the Series A Junior Participating Preferred Stock. 

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

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

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

A-4 

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

        Section 4.     Certain
Restrictions.  

	  	        (A)    Whenever
quarterly dividends or other dividends or distributions payable on the Series A Junior Participating 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 Junior Participating 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 Junior Participating
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 Junior Participating Preferred Stock, except dividends paid ratably on
the Series A Junior Participating Preferred Stock and all such parity stock on which dividends are payable or in arrears in
proportion to the total amounts to which the holders of all such shares are then entitled; 

	  	        (iii)    redeem
or purchase or otherwise acquire for consideration shares of any stock ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding up) with the Series A Junior Participating 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 Junior
Participating Preferred Stock; or 

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

	  	        (B)    The
Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for consideration any shares of
stock of the Corporation unless the Corporation could, under Paragraph (A) of this Section 4, purchase or otherwise acquire such
shares at such time and in such manner. 

A-5 

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

        Section 6.     Liquidation,
Dissolution or Winding Up.  

	  	        (A)    Upon
any liquidation (voluntary or otherwise), 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
Junior Participating Preferred Stock unless, prior thereto, the holders of shares of Series A Junior Participating Preferred Stock
shall have received an amount equal to $1,000 per share of Series A Junior Participating Preferred Stock plus an amount equal to
accrued and unpaid dividends and distributions thereon, whether or not declared, to the date of such payment (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 Junior Participating 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 Junior Participating Preferred
Stock and Common Stock, respectively, holders of Series A Junior Participating 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 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 Junior Participating Preferred Stock, then such remaining assets shall be distributed ratably to the holders of such parity
shares in proportion to their respective liquidation preferences. In the event, however, that there are not sufficient assets
available to permit payment in full of the Common Adjustment, then such remaining assets shall be distributed ratably to the
holders of Common Stock. 

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

A-6 

	  	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. 

        Section 7.     Consolidation,
Merger, etc.   In case the Corporation shall enter into any consolidation, merger, combination or other
transaction in which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other
property, then in any such case the shares of Series A Junior Participating 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 after the Rights
Declaration Date (i) declare any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding Common
Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the amount set forth
in the preceding sentence with respect to the exchange or change of shares of Series A Junior Participating Preferred Stock shall
be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding
immediately prior to such event. 

        Section 8.     No
Redemption.   The shares of Series A Junior Participating Preferred Stock shall not be redeemable. 

        Section 9.     Ranking.   The
Series A Junior Participating Preferred Stock shall rank junior to all other series of the Corporation’s Preferred Stock
which may be issued from time to time as to the payment of dividends and the distribution of assets, unless the terms of any such
series shall provide otherwise. 

        Section 10.     Amendment.   At
any time when any shares of Series A Junior Participating Preferred Stock are outstanding, neither the Restated Certificate of
Incorporation of the Corporation nor this Certificate of Designation shall be amended in any manner which would materially alter
or change the powers, preferences or special rights of the Series A Junior Participating 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 Junior
Participating Preferred Stock, voting separately as a class. 

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

A-7 

        IN WITNESS WHEREOF, we have
executed and subscribed this Certificate and do affirm the foregoing as true under the penalties of perjury this ___ day of
__________, 2006. 

	Attest: 	 	DONALDSON COMPANY, INC. 
	 
	By    	    
	    	By    	    

	 	Name:   
Title:      	 	 	Name:   
Title:      
	 

A-8 

Exhibit B  

[Form of Rights Certificate] 

	Certificate No. R - 	  	________ Rights 	 

NOT EXERCISABLE AFTER MARCH 2, 2016 UNLESS EXTENDED PRIOR THERETO BY THE
BOARD OF DIRECTORS OR EARLIER IF REDEEMED 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, RIGHTS BENEFICIALLY OWNED BY AN
ACQUIRING PERSON (AS SUCH TERM IS DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND
VOID. [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 MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF
SUCH AGREEMENT.]1 

Rights Certificate 

DONALDSON COMPANY, 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 January 27, 2006
(the “Rights Agreement”), between Donaldson Company, Inc., a Delaware corporation (the “Company”), and Wells
Fargo Bank, N.A., a national banking association (the “Rights Agent”), to purchase from the Company at any time prior to
5:00 P.M. (New York City time) on March 2, 2016 (unless such date is extended prior thereto by the Board of Directors) at the
office or offices of the Rights Agent designated for such purpose, or its successors as Rights Agent, one one-thousandth of a
fully paid, non-assessable share of Series A Junior Participating Preferred Stock (the “Preferred Stock”) of the
Company, at a purchase price of $______ 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 duly executed. 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 share set forth above, are the number and Purchase Price as of ___________, 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. 

_________________

1     The portion of the legend in brackets shall be inserted only if applicable and shall
replace the preceding sentence. 

B-1 

        Upon the occurrence of a
Section 11(a)(ii) Event (as such term is defined in the Rights Agreement), if the Rights evidenced by this Rights Certificate are
beneficially owned by (i) an Acquiring Person or an Affiliate or Associate of any such Acquiring Person (as such terms are defined
in the Rights Agreement), (ii) a transferee of any such Acquiring Person, Associate or Affiliate, or (iii) under certain
circumstances specified in the Rights Agreement, a transferee of a person who, after such transfer, became an Acquiring Person, or
an Affiliate or Associate of an Acquiring Person, such Rights shall become null and void and no holder hereof shall have any right
with respect to such Rights from and after the occurrence of such Section 11(a)(ii) Event. 

        As provided in the Rights
Agreement, the Purchase Price and the number and kind of shares of Preferred Stock or other securities, which 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 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 one one-thousandths of a share 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 may be redeemed by the Company at its option at a redemption price
of $0.001 per Right at any time prior to the earlier of the close of business on (i) the tenth day following the Stock Acquisition
Date (as such time period may be extended pursuant to the Rights Agreement), and (ii) the Final Expiration Date. In addition,
under certain circumstances following the Stock Acquisition Date, the Rights may be exchanged, in whole or in part, for shares of
the Common Stock, or shares of preferred stock of the Company having essentially the same value or economic rights as such shares.
Immediately upon the action of the Board of Directors of the Company authorizing any such exchange, and without any further action
or any notice, the Rights (other than Rights which are not subject to such exchange) will terminate and the Rights will only
enable holders to receive the shares issuable upon such exchange. 

B-2 

        No fractional shares of
Preferred Stock will be issued upon the exercise of any Right or Rights evidenced hereby (other than fractions which are integral
multiples of one one-thousandth of a share of Preferred Stock, which may, at the election of the Company, be evidenced by
depositary receipts), but in lieu thereof a cash payment will be made, as provided in the Rights Agreement. The Company, at its
election, may require that a number of Rights be exercised so that only whole shares of Preferred Stock would be issued.

        No holder of this Rights
Certificate 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 which may at any time be issuable on the exercise hereof, nor shall anything contained in
the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a 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 consent to or withhold consent from 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. 

B-3 

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

Dated as of ____________ ___, _____  

	    	    
	 	  

	ATTEST: 	 	DONALDSON COMPANY, INC. 
	 
	    
	    	By:    	    

	Secretary 	    	    	Title:    
	 
	 
	Countersigned:

WELLS FARGO BANK, N.A.  	 	 
	 
	 
	By:    	    
	    	    	    
	    	Authorized Signature 

B-4 

[Form of Reverse Side of Rights Certificate] 

FORM OF ASSIGNMENT 

(To be executed by the registered holder if such holder

desires to transfer the Rights Certificate.)  

	FOR VALUE RECEIVED	 	hereby sells, assigns and transfers unto	 
	 	
	 	

	 
	

(Please print name and address of transferee)  

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

Dated: ___________,______ 

	    	

	 	Signature 

Signature Medallion Guaranteed: 

B-5 

Certificate  

        The undersigned hereby
certifies by checking the appropriate boxes that: 

                   (1)
this Rights Certificate [    ] is [    ] is 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 any such Acquiring Person (as such terms are defined pursuant to the Rights
Agreement); 

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

Dated: ___________,______ 

	    	    

	 	Signature 

Signature Medallion Guaranteed: 

NOTICE  

        The signature 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-6 

FORM OF ELECTION TO PURCHASE 

(To be executed if holder desires to exercise

Rights represented by the Rights Certificate.)  

To:   DONALDSON COMPANY, 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 which may be issuable
upon the exercise of the Rights) and requests that certificates for such shares 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 Medallion Guaranteed: 

B-7 

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 any such Acquiring Person (as such terms are defined pursuant to the Rights
Agreement); 

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

Dated: ___________,______ 

	    	    

	 	Signature 

Signature Medallion Guaranteed: 

NOTICE  

        The signature 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-8Exhibit 10.1

 

ASSET PURCHASE AGREEMENT

 

by and among

 

GLOBALOPTIONS GROUP, INC.

 

and

 

SAFIR ROSETTI, LLC

 

January 27, 2006

 

 

 

 

ASSET PURCHASE AGREEMENT

 

THIS ASSET PURCHASE AGREEMENT (the “Agreement”), is made January 27, 2006, by and among GLOBALOPTIONS GROUP, INC., a Nevada corporation (“Buyer”), SAFIR ROSETTI, LLC, a Delaware limited liability company (“Seller”).

 

RECITALS

 

Seller desires to sell, and Buyer desires to purchase, the Assets (as defined below) of Seller for the consideration and on the terms set forth in this Agreement. 

 

AGREEMENT

 

	
The parties, intending to be legally bound, hereby agree as follows:

 

 

ARTICLE I

SALE AND TRANSFER OF ASSETS; CLOSING

 

Section 1.1           Assets to Be Sold. Upon the terms and subject to the conditions set forth in this Agreement, at the Closing (as defined in Section 1.6 below), Seller shall sell, convey, assign, transfer and deliver to Buyer, and Buyer shall purchase and acquire from Seller, free and clear of any charge, claim, equitable interest, lien, option, pledge, security interest, mortgage, encroachment, or restriction of any kind (an “Encumbrance”), other than any Encumbrance identified on Annex A as acceptable to Buyer (a “Permitted Encumbrance”), all of Seller’s property and assets, real, personal or
mixed, tangible and intangible, of every kind and description, wherever located, belonging to Seller and used in the conduct of the Seller’s private investigations and security consulting business (the “Business”), including the following (but excluding the Excluded Assets):

 

(a)               all leasehold interest in all real property leased or used by Seller (the “Real Property”), including the Real Property described in Schedule 2.6;

 

(b)               all equipment, furniture, office equipment, computer hardware, supplies, materials, vehicles, and other items of tangible personal property (other than inventory) of every kind owned or leased by Seller (the “Tangible Personal Property”), including those items described in Schedule 2.7(b);

 

(c)               all trade accounts receivable and all other accounts or notes receivable of Seller (the “Accounts Receivable”); 

 

 

 

 

 

(d)               any oral or written contracts or agreement (i) under which Seller has or may acquire any rights or benefits, (ii) under which Seller has or may become subject to any obligation or liability, or (iii) by which Seller or any of the Assets is or may become bound (any such contract or agreement, a “Seller Contract”), including those Seller Contracts listed on Schedule 2.14;

 

(e)               all Governmental Authorizations (as defined in Section 2.11(b)) and all pending applications therefor or renewals thereof, in each case to the extent transferable to Buyer;

 

(f)                all data and records related to the operations of Seller, and copies of all records referenced in Section 1.2(e) below;

 

(g)               all of the intangible rights and property of Seller, including the Intellectual Property Assets (as defined in Section 2.16) and the Proprietary Assets (as defined in Section 2.16), going concern value, goodwill, telephone, telecopy, and e-mail addresses, websites, domain names, and listings including the name “SafirRosetti, LLC,” abbreviations thereof, and Safir Rosetti LLC (it being understood among the parties that Buyer is not purchasing or have any rights thereto of the individual names “Safir” and/or “Rosetti”);

 

(h)               all insurance benefits, including rights and proceeds, arising from or relating to the Assets prior to the Closing Date;

 

(i)                all claims of Seller against third parties relating to the Assets; 

 

(j)                all cash and cash equivalents and all securities and short term investments; 

 

(k)               all rights of Seller relating to deposits and prepaid expenses, claims for refunds and rights to offset in respect thereof which are not excluded under Section 1.2(f); and

 

(l)                all other properties and assets of every kind, character and description, tangible or intangible, of every kind and description, owned by Seller, whether or not similar to the items specifically set forth above.

 

All of the property and assets to be transferred to Buyer hereunder are referred to collectively as the “Assets”. Notwithstanding the foregoing, the transfer of the Assets pursuant to this Agreement will not include the assumption of any liability or obligation in respect thereof unless the Buyer expressly assumes such liability or obligation pursuant to Section 1.4(a).

 

Section 1.2           Excluded Assets. Notwithstanding anything to the contrary contained in Section 1.1 or elsewhere in this Agreement, the following items (collectively, the “Excluded Assets”) are not part of the sale and purchase contemplated hereunder, are excluded from the Assets, and will remain the property of Seller after the Closing:

 

 

- 2 -

 

 

 

 

(a)               the minute book, membership records, and company seal of Seller; 

 

(b)               the equity of Seller; 

 

(c)               all of Seller’s life insurance policies and rights thereunder (except to the extent specified in Sections 1.1(h) and (i));

 

(d)               all personnel records and other records that Seller is required by law to retain in its possession;

 

(e)               all claims for refund of taxes and other governmental charges of whatever nature;

 

(f)                all rights in connection with and assets of any Employee Benefit Plans (as defined in Section 2.10 below);

 

(g)               all rights of Seller in connection with the transactions contemplated hereby; and

 

(h)               the property and assets expressly designated in Schedule 2.7(a).

 

Section 1.3           Purchase Price. The consideration for the Assets (the “Purchase Price”) will be Thirteen Million and No/100 Dollars ($13,000,000) wherein the Purchase Price shall include: (i) cash in the amount of Nine Million Dollars ($9,000,000) (“Cash Portion”); and (ii) Buyer’s stock in the amount of Four Million Dollars ($4,000,000) (“Stock Portion”), and the assumption of the Assumed Liabilities (as defined in Section 1.4 below) provided, however, there shall be a dollar for dollar adjustment to the Purchase Price, if at the Closing Date, the net assets differ from the net assets reflected on the September 30, 2005 financial statements of the Seller.
In the event the net assets of the Seller are different from the September 30, 2005 financial statements at the Closing Date, the Cash Portion of the Purchase Price shall then be reduced or increased by an amount equal to such difference (“Purchase Price Adjustment”). 

 

Seller shall prepare a Closing Date Statement based upon the Seller’s books and records as of the close of business on the business day immediately preceding the Closing Date, which shall set forth the foregoing matters and to calculate the Purchase Price Adjustment, if necessary, to the Purchase Price, substantially in the form of Exhibit 1.3. The parties acknowledge that it may take up to ninety (90) days from the Closing Date to finalize the Purchase Price Adjustment, and accordingly, the parties agree to deposit the Purchase Price Adjustment amount in a special trust account for a period of ninety (90) days to assure the accountability of such Purchase Price Adjustment. In accordance with Section 1.7(b), at the Closing, the Purchase Price shall be delivered by Buyer
to Seller, as follows: (A) the payment of Eight Million and No/100 Dollars ($8,000,000) (or such amount to reflect any adjustments pursuant to this Section 1.3) by wire transfer to an account specified by Seller; (B) One Million and No/100 Dollars ($1,000,000) promissory note (in the form of Exhibit 1.3 (a), the “Promissory Note”)) at Closing to the Law 

 

- 3 -

 

 

 

Offices of Morton S. Taubman, as escrow agent (the “Escrow Agent”) under the Escrow Agreement (as defined in Section 1.7(a) below); (C) at Closing to the Escrow Agent an amount equal to One Million Dollars ($1,000,000) of the Stock Portion of the Purchase Price; (D) at Closing an amount equal to One Million Dollars ($1,000,000) of the Stock Portion of the Purchase Price shall be delivered to the Seller; (E) at Closing a deposit in the amount equal to the Purchase Price Adjustment, if any, in a trust account in the name of both the Buyer and Seller and said amount to be paid either to the Seller or Buyer at the end of the ninety day period to accomplish the accounting necessary to finalize the Purchase Price Adjustment; (F) an amount equal to One Million Dollars ($1,000,000) of the Stock Portion of the Purchase price
shall be delivered to the Seller one year from the date of the Closing Date, and the same amount each year thereafter for the remaining two years, subject to the Escrow Agreement adjustments, if any. The Stock Portion shall be paid in shares of common stock of Buyer (“Stock”), which number of shares shall equal to the number of shares resulting from $4,000,000 divided by the lower of either (i) the last per share price at which the equity capital was raised prior to the Closing Date by the Buyer(and such per share price calculation shall exclude any warrants and/or stock options associated with such equity capital raise) or (ii) average per share price of the closing prices of the sales of Common Stock on all securities exchanges on which Common Stock may at the time be listed, or, if there have been no sales on any such exchange on any day, the average of the highest bid and lowest asked prices on all such exchanges at the end of such day, or,
if on any day Common Stock are not so listed, the average of the representative bid and asked prices quoted in the NASDAQ System as of 4:00 P.M., New York time, or, if on any day Common Stock are not quoted in the NASDAQ System, the average of the highest bid and lowest asked prices on such day in the domestic over-the-counter market as reported by the National Quotation Bureau Incorporated, or any similar successor organization, in each such case averaged over a period of 30 days consisting of the day as of which the Fair Market Value of a Share is being determined and the 29 consecutive trading days prior to such day.

 

	
Section 1.4

	
Liabilities.

 

(a)               At the Closing, but effective as of the Effective Time, Buyer shall assume and be obligated to discharge only the following specifically enumerated liabilities and obligations of Seller (the “Assumed Liabilities”) and fully discharge the Seller’s Promissory Note as set forth in (iii), below of this Section 1.4 (“Seller’s Note”) :

 

(i)                any trade account payable that is incurred by Seller in the Ordinary Course of Business at the Closing Date, in each case which remains unpaid at and is not delinquent as of the Closing; 

 

(ii)               any liability arising after the Closing under any Seller Contract included in the Assets (other than any liability arising out of or relating to a breach which occurred prior to the Closing); and

 

(iii)              any liability of Seller described in Schedule 1.4(a)(iii), including amounts under the Seller’s Note.

 

(b)               All liabilities and obligations of Seller, whether arising prior to the Closing Date, other than the Assumed Liabilities, are referred to as the “Retained Liabilities”. 

 

- 4 -

 

 

 

All of the Retained Liabilities will remain the sole responsibility of and will be retained solely by Seller. Retained Liabilities include, but not limited to, the legal and accounting fees incurred by the Seller as a result of the anticipated transaction under this Agreement, whether such fees are incurred before or after the Closing Date.

 

Section 1.5           Allocation. The Purchase Price will be allocated as set forth in Exhibit 1.5. After the Closing, the parties shall make consistent use of the allocation specified in Exhibit 1.5 for all tax purposes and in any tax returns filed with the Internal Revenue Service in respect thereof, including IRS Form 8594.

 

Section 1.6           Closing. The consummation of the purchase and sale provided for in this Agreement (the “Closing”) will take place at Buyer’s offices at New York City, at 10:00 a.m. (local time) on a date mutually agreed to by the parties but not later than February 28, 2006 (the “Closing Date”). Provided, however, the Closing Date shall be automatically extended to permit the Seller sufficient time to provide the audited financial statements required in a form in compliance with Section 2.4 of this Agreement. 

 

	
Section 1.7

	
Closing Obligations.

 

	
(a)

	
At the Closing, Seller shall deliver to Buyer:

 

(i)                a bill of sale for all of the Assets in a form to be agreed upon (the “Bill of Sale”), executed by Seller;

 

(ii)               an assignment of all of the Assets which are intangible personal property in the form of Exhibit 1.7(a)(ii), which assignment shall also contain Buyer’s undertaking and assumption of the Assumed Liabilities (the “Assignment and Assumption Agreement”), executed by Seller;

 

(iii)              with respect to each interest in real property leased by Seller as set forth in Schedule 2.6(b) below, an Assignment and Assumption of Lease in the form of Exhibit 1.7(a)(iii) (the “Assignment and Assumption of Lease”), executed by Seller and the applicable lessor; 

 

(iv)              copies of any other consent (excluding consents relating to the Non-Material Contracts (as defined in Section 1.8 below)) required to be obtained in connection with the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby as disclosed on Schedule 2.2(c);

 

(v)               an escrow agreement in the form of Exhibit 1.7(a)(v), executed by Seller, Howard Safir (“Safir”) and Joseph Rosetti (“Rosetti”), (Safir and Rosetti, collectively the “Members”) and the Escrow Agent (the “Escrow Agreement”);

 

(vi)              the employment agreements in the form of Exhibit 1.7(a)(vi), executed by Safir, Rosetti, Adam Safir, and Richard Rosetti (the “Employment Agreements”);

 

 

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(vii)             the noncompetition, nondisclosure and nonsolicitation agreements in the form of Exhibit 1.7(a)(vii), executed by the Members and the employees listed on Schedule 1.7.(a)(vii); 

 

(viii)            a certificate of the Secretary of Seller certifying, as complete and accurate as of the Closing, attached copies of the Operating Agreement of Seller, certifying and attaching all requisite resolutions or actions of Seller’s Members approving the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby and the change of name contemplated by Section 4.5 and certifying to the incumbency of the officers of Seller executing this Agreement and any other document relating to the transactions contemplated hereby and accompanied by the requisite documents for amending the Organization Documents of Seller required to effect such change of name in form sufficient for filing with the State of
Delaware;

 

(ix)              an opinion of counsel of the Seller, dated the Closing Date, in a form customary for a similar transactions;

 

(x)               the certificate of organization and all amendments thereto of Seller, duly certified as of a recent date by the Secretary of State of Delaware;

 

(xi)              certificates as to the good standing of Seller and payment of all applicable state taxes by Seller, executed by the appropriate officials of the jurisdiction of Seller’s incorporation and each jurisdiction in which Seller is licensed or qualified to do business as a foreign corporation as specified in Schedule 2.1 To the extent that such certificates cannot be provided prior to Closing, seller agrees to indemnify and hold harmless Buyer for the non-payment of sales taxes for any of the jurisdictions in which Seller is licensed and qualified to do business as a foreign corporation; and

 

(xii)             such other deeds, bills of sale, assignments, certificates of title, documents and other instruments of transfer and conveyance as may reasonably be requested by Buyer, each in form and substance reasonably satisfactory to Buyer and its counsel and executed by Seller for the purpose of facilitating the consummation or performance of the transactions contemplated hereby.

 

	
(b)

	
At the Closing, Buyer shall deliver to Seller:

 

(i)                Eight Million and No/100 Dollars ($8,000,000) as may be adjusted in accordance with Section 1.3 of this Agreement, by wire transfer to accounts specified in writing by Seller (which wire transfer instructions must be delivered by Seller to Buyer at least one (1) Business Day prior to Closing);

 

(ii)               the Assignment and Assumption Agreement, executed by Buyer; 

 

(iii)              the Escrow Agreement, executed by Buyer and the Escrow Agent, together with the delivery of an amount equal to One Million and No/100 Dollars ($1,000,000) 

 

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of Stock and the Promissory Note in the amount of One Million and No/100 Dollars ($1,000,000) to the Escrow Agent; 

 

(iv)              the Employment Agreements, executed by Buyer; 

 

(v)               the Noncompetition Agreements, executed by Buyer; 

 

(vi)              a certificate of the Secretary of Buyer certifying, as complete and accurate as of the Closing, attached copies of the bylaws of Buyer and certifying and attaching all requisite resolutions or actions of Buyer’s board of directors approving the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby and certifying to the incumbency of the officers of Buyer executing this Agreement and any other document relating to the transactions contemplated hereby; and

 

(vii)             a stock option plan for the employees of the Seller to be available to said employees subsequent to the Closing Date, and said option plan will contain in part: (x) stock options priced at the end of the Closing Date at the market value of $975,000 as of the end of the Closing Date; (y) with a vesting schedule of four years; and (z) distribution list of said stock options to employees determined by Safir in his sole discretion. 

 

Section 1.8           Consents. Buyer may waive the requirement that Seller obtain consents to assignment with respect to any of the Seller Contracts disclosed on Schedule 2.2(c) (the contracts with respect to which Buyer grants such waiver, the “Non-Material Contracts”), in which case any such Non-Material Contracts will be identified as such on Schedule 2.2(c). Notwithstanding anything to the contrary in this Agreement, if any consents to assignment relating to the Non-Material Contracts have not been obtained at or prior to the Closing, this Agreement will not constitute an
assignment or an agreement to assign if such assignment or attempted assignment would constitute a breach of the Non-Material Contract or result in the loss or diminution thereof; provided, however, that in each such case, Seller shall take commercially reasonable steps after the Closing to obtain the consent of such other party to the Non-Material Contract to the assignment of such Non-Material Contract to the Buyer. If such consent is not obtained, Seller shall cooperate with the Buyer to the extent legally permissible and feasible in any reasonable arrangement designed to provide for Buyer the benefits of any Non-Material Contract, including, without limitation, the enforcement, for the account and benefit of the Buyer, of any and all rights of Seller against any other person with respect to a Non-Material Contract.

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF SELLER 

 

	
Seller represents and warrants to Buyer as follows:

 

 

 

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Section 2.1

	
Organization and Good Standing.

 

(a)               Seller is a limited liability company duly organized, validly existing, and in good standing under the laws of the State of Delaware, with full corporate power and authority to conduct its business as it is now being conducted, to own or use its properties and assets, and to perform all its obligations under its contracts. Seller is duly qualified to do business as a foreign corporation and is in good standing under the laws of each state or other jurisdiction set forth in Schedule 2.1. 

 

(b)               Complete and accurate copies of the certificate of organization and operating agreement of Seller (collectively, the “Governing Documents”), as currently in effect, have been delivered to Buyer.

 

(c)               Seller does not own and has not entered into any agreement or contract to acquire, any equity securities or other securities of any person or any direct or indirect equity ownership interest in any other business.

 

	
Section 2.2

	
Authority; No Conflict.

 

(a)               This Agreement constitutes the legal, valid, and binding obligation of Seller. Upon the execution and delivery by Seller of each of the documents and instruments to be executed and delivered by Seller at Closing pursuant to Section 1.7(a) (collectively, the “Seller’s Closing Documents”), each of Seller’s Closing Documents will constitute the legal, valid, and binding obligation of Seller, enforceable against Seller in accordance with their respective terms. Seller has the right, power, authority, and capacity to execute and deliver this Agreement and Seller’s Closing Documents and to perform its obligations under this Agreement and Seller’s Closing
Documents, and such action has been duly authorized by all necessary action by Seller’s Members. 

 

(b)               Neither the execution and delivery of this Agreement nor the consummation or performance of any of the transactions contemplated hereby will (with or without notice or lapse of time): (i) contravene, conflict with, or result in a violation of any provision of any of the Governing Documents of Seller, (ii) contravene, conflict with, or result in a violation of any Legal Requirement (as defined in Section 2.11(a) below) or Order (as defined in Section 2.12(b) below) of any court or governmental authority to which Seller or any of the Assets are subject, or (iii) breach any provision of, give any person the right to declare a default or exercise any remedy under, accelerate the
maturity or performance of or payment under, result in the creation or imposition of any Encumbrance upon any of the Assets under, or cancel, terminate, or modify, any contract to which Seller is a party or by which Seller or the Assets are bound.

 

(c)               Except as set forth in Schedule 2.2(c), Seller is not and will not be required to give any notice to or obtain any consent from any person in connection with the execution and delivery of this Agreement or the consummation or performance of the transactions contemplated hereby (including the assignment of the Seller Contracts hereunder). 

 

 

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Section 2.3           Capitalization. The authorized equity of Seller consist of membership interests held entirely by the parties listed on Schedule 2.3. Safir and Rosetti own one hundred percent (100%) of the voting Membership Interest. 

 

Section 2.4           Financial Statements. Attached hereto as Schedule 2.4 are the Seller’s unaudited balance sheet as of December 31, 2004, unaudited profit and loss statement for the twelve months ended December 31, 2004, unaudited balance sheet as of September 30, 2005, and unaudited profit and loss statement for the 9 months ended September 30, 2005 (the “Financial Statements”). The Financial Statements fairly present the financial condition and the results of operations of Seller as at the respective dates of and for the periods referred to in such financial statements, all in accordance with generally
accepted accounting principals (“GAAP”) except as set forth on Schedule 2.4. The Financial Statements have been prepared from and are in accordance with the books and records of Seller. Seller shall provide to the Buyer, on or before Closing, audited financial statements for the years ended December 31, 2004, December 31, 2005, and for the stub period thereafter if the Closing is delayed by the parties, and such financial statements shall be materially consistent with the previously submitted unaudited financial statements. The aforementioned audited financial statements must be in the form and an opinion of an independent certified public accountant attached to meet the standards required by the Securities and Exchange Commission, and the independent certified public accountant must provide its consent to the use of the Seller’s audited financial statements in the
Buyer’s 8-K and other registration filings with the Securities and Exchange Commission. Further, the Seller’s independent public accountant shall make all of its work papers and other supporting documents it utilized in proving its opinion available, if needed for review by the Buyer’s independent public accountant. 

 

Section 2.5           Sufficiency of Assets. The Assets (a) constitute all of the assets, tangible and intangible, necessary to conduct Seller’s business in the manner presently operated by Seller, and (b) constitute all of the operating assets of Seller.

 

Section 2.6           Real Property Leases. Schedule 2.6 sets forth all leases of real property to which the Seller is a party (the “Leases”). Complete and accurate copies of the Leases, as amended or modified, have been delivered to Buyer. The Leases are in full force and effect, are binding and enforceable against each of the parties thereto in accordance with their respective terms, and have not been amended or modified since the date of delivery to the Buyer. No party to any Lease has sent written notice to the other claiming that such party is in default thereunder, which alleged default remains uncured. Seller enjoys peaceful and undisturbed
possession of all such real property.

 

	
Section 2.7

	
Personal Property.

 

(a)               Except as set forth on Schedule 2.7(a), Seller owns good and transferable title to all of its Assets (excluding its interest in the real property described in Schedule 2.6), free and clear of any Encumbrances other than Permitted Encumbrances.

 

(b)               Schedule 2.7(b) sets forth all items of Tangible Personal Property with an initial, nondepreciated book value in excess of $2,500. Each item of Tangible Personal Property is in good repair and good operating condition, ordinary wear and tear excepted, and is suitable for immediate use in the ordinary course of business, No item of Tangible Personal Property is 

 

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in need of repair or replacement other than as part of routine maintenance in the ordinary course of business. All Tangible Personal Property is in the possession of Seller.

 

Section 2.8           Taxes. Seller has timely filed all tax returns (federal, state or local) required to be filed by it in accordance with applicable Legal Requirements (as defined in Section 2.11(a)). All of such tax returns are accurate and complete in all material respects. Seller has paid or made provision for the payment of all taxes that have or may become due for all periods covered by the tax returns or otherwise, or pursuant to any assessment received by Seller. There is no dispute or claim concerning any taxes of Seller either claimed or raised by any governmental authority in writing other than the notification of a potential sales and use tax audit by the State of New York (the “Potential Tax
Audit”) Seller has not requested or been given any extension of time within which to file returns in respect of any taxes for which Seller may be liable. All taxes that Seller is or was required by Legal Requirements to withhold, deduct or collect have been duly withheld, deducted and collected and, to the extent required, have been paid to the proper governmental authority subject to the Potential Tax Audit.

 

Section 2.9           Employees. Schedule 2.9 sets forth a complete and accurate list, giving name, job title, current compensation paid or payable, sick and vacation leave that is accrued but unused, and services credited for purposes of vesting and eligibility to participate under any Employee Benefit Plan (as defined below) (in each case, to the extent applicable), (a) for each employee of Seller, including each employee on leave of absence or layoff status (the “Employees”), and (b) for any independent contractors who render services on a regular basis to, or are under contract with, Seller. Seller has not experienced any organized slowdown, work interruption strike, or work stoppage by its employees, and, to
the knowledge of Seller, and the Members, there is no strike, labor dispute, or union organization activity pending or threatened that affects Seller’s Employees. None of the Employees belongs to any union or collective bargaining unit. Except as set forth on Schedule 2.9, no Employee of Seller is bound by (a) any employment or similar contract or agreement with Seller, or (b) any contract or agreement that purports to limit or restrict the ability of such Employee to (i) perform his duties as an employee of Seller, or (ii) engage in any conduct, activity, or practice relating to Seller’s business.

 

Section 2.10         Employee Benefits. Schedule 2.10 sets forth all plans, programs, or arrangements that Seller has maintained, sponsored, adopted, or obligated itself under with respect to employees’ benefits, including pension or retirement plans, medical or dental plans, life or long-term disability insurance, bonus or incentive compensation, or stock option or equity participation plans (the “Employee Benefit Plans”). Seller has no liability or obligation with respect to any Employee under any Employee Benefit Plan other than normal salary or wage accruals and paid vacation, sick leave, and holiday accruals in accordance with Seller’s practice and policy. Seller has performed all obligations required to be
performed under, and has complied with all Legal Requirements in connection with, all such Employee Benefit Plans and is not in arrears under any of the terms thereof.

 

	
Section 2.11

	
Compliance With Legal Requirements, Governmental Authorizations.

 

(a)               Seller is, and at all times since January 1, 2002, has been, in compliance in all material respects with any federal, state, or local law, ordinance or regulation (including with respect to environmental, disposal of hazardous substances, or public health or safety) (a “Legal  

 

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Requirement”), that is or was applicable to the operation of its business or the ownership or use of any of its assets. Except as set forth on Schedule 2.11(a), Seller has not received, at any time since January 1, 2002, any notice or other communication (whether oral or written) from any governmental authority or any other person regarding any actual or alleged violation of, or failure to comply with, any Legal Requirement with the exception of the Potential Tax Audit.

 

(b)               Schedule 2.11(b) contains a complete and accurate list of each approval, license or permit (the “Governmental Authorizations”) that is held by Seller or that otherwise relates to the Seller’s business or the Assets. The Governmental Authorizations listed in Schedule 2.11(b) collectively constitute all of the approvals, licenses and permits necessary to permit Seller to lawfully conduct and operate its business in the manner it currently conducts and operates such business and to permit Seller to own and use its assets in the manner in which it currently owns and uses such assets. Except as set forth on Schedule 2.11(b), each such private investigations license or permit is transferable to Buyer as of the Closing. 

 

	
Section 2.12

	
Legal Proceedings, Orders.

 

(a)               Except as set forth in Schedule 2.12(a), there are no actions or proceedings pending by or against Seller or that otherwise relate to or may affect the business of, or any of the assets owned or used by, Seller. To the knowledge of Seller, no such action or proceeding has been threatened, and no event has occurred or circumstance exists that may serve as a basis for the commencement of any such action or proceeding.

 

(b)               There are no orders, injunctions, judgments or decrees (an “Order”) outstanding against Seller or that otherwise relate to or may affect the business of, or any of the assets owned or used by, Seller.

 

Section 2.13         Insurance. Schedule 2.13 sets forth (a) a complete and accurate list of all insurance under which any of the assets or properties of Seller is covered or otherwise relating to the business of Seller, and (b) all life insurance policies covering the life of any Employee for which Seller has paid any premiums. Such policies are in full force and effect, and Seller has paid all premiums due, and has otherwise performed all of its obligations under, each such policy of insurance.

 

Section 2.14         Contracts; No Defaults. Schedule 2.14 contains an accurate and complete list of each Seller Contract. Seller has delivered to Buyer accurate and complete copies of each written Seller Contract, and has provided Buyer with a true and accurate written description of each oral Seller Contract. Each Seller Contract is valid and binding and in full force and effect, Seller and each other person that has or had any obligation or liability under any Seller Contract is in compliance with all material terms and requirements of each Seller Contract, and no event has occurred or circumstance exists that (with or without notice or lapse of time) may contravene, conflict with, or result in a violation or breach of, or give Seller or any other person the right to declare
a default or exercise any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate, or modify, any Seller Contract.

 

Section 2.15         Intellectual Property. Schedule 2.15 lists any names, assumed names, registered or unregistered trade names, patents, inventions or discoveries that may be patentable, 

 

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registered or unregistered trademarks, registered or unregistered service marks, registered or unregistered copyrights, applications for any of the foregoing, computer software, rights in internet web sites and internet domain names owned, used or licensed by Seller (collectively, the “Intellectual Property Assets”). The documentation relating to (a) such Intellectual Property Assets and (b) any trade secrets, know-how, confidential or proprietary information and customer lists (the items referenced in clause (b), the “Proprietary Assets”) is current, accurate, and sufficient in detail and content to allow its full and proper use. Seller has taken all reasonable precautions to protect the secrecy, confidentiality, and value of the all of the Intellectual Property Assets and Proprietary Assets, and has the
right to use all of the Intellectual Property Assets and Proprietary Assets. None of the Intellectual Property Assets or Proprietary Assets is subject to any adverse claim or has been challenged or threatened in any way or infringes or conflicts with any patent or copyright application or registration or any other intellectual property right of any other person. The ownership and use of the Intellectual Property Assets and Proprietary Assets by Buyer following the Closing will not infringe upon or conflict with the intellectual property rights of any person.

 

Section 2.16         Relationships with Related Persons. Except as set forth in Schedule 2.16, no Member or any Related Person (as defined below) of the Member has any interest in any property (whether real, personal, or mixed and whether tangible or intangible), used in or pertaining to Seller’s business. To the knowledge of the Seller, no Member or any Related Person of any Member owns an equity interest or any other financial interest in any person that has (a) had business dealings or a material financial interest in any transaction with Seller other than business dealings or transactions disclosed in Schedule 2.16, each of which has been conducted in the ordinary
course of business at substantially prevailing market prices and on substantially prevailing market terms, or (b) engaged in competition with Seller with respect to the Seller’s business. Except as set forth on Schedule 2.16, the Seller is not indebted, directly or indirectly, to any person who is an officer, director or Member of the Seller or any Affiliate of any such person in any amount other than for salaries for services rendered or reimbursable business expenses, and no such officer, director, Member or Affiliate is indebted to the Seller, except for advances made to employees of the Seller in the ordinary course of business to meet reimbursable business expenses anticipated to be incurred by such person. For the purposes of this Section 2.16, “Related Person” means, with respect to any individual: (i) an individual’s spouse,
siblings, siblings’ children, children, grandchildren or parents; or (ii) a trust, corporation, partnership or other entity, the beneficiaries, stockholders, partners, or owners, or persons holding a controlling interest of which consist of such individuals referred to in the immediately preceding clause (i). Affiliate for purposes of this Agreement shall mean a wholly owned subsidiary of the Buyer. 

 

Section 2.17         No Undisclosed Liabilities. Seller has no liabilities or obligations except for liabilities or obligations reflected or reserved against in the unaudited balance sheet as of September 30, 2005 (the “Interim Balance Sheet”) and current liabilities incurred in the ordinary course of business of Seller since September 30, 2005, other than the Members’ future individual income tax liability resulting from the Seller’s income for the tax year ended 2005 and those which may arise from the Potential Sales Tax Audit. 

 

Section 2.18         No Material Adverse Change. Between the date of this Agreement and the Closing Date (a) there has not been any material adverse change in the business, properties, 

 

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prospects, assets, results of operations or condition (financial or otherwise) of Seller, and no event has occurred or circumstance exists that may result in such a material adverse change; (b) there has not been any sale, lease, or other disposition of any asset or property of Seller other than in the ordinary course of business, or any Encumbrance on any asset or property of Seller; and (c) Seller has conducted its business only in the ordinary course of business so as to preserve its business intact, to keep available to its business the services of Seller’s employees, and to preserve its business and the goodwill of its suppliers, customers and others having business relations with it.

 

Section 2.19         Brokers or Finders. Neither Seller nor any of its officers, directors, employees or agents have incurred any liability or obligation for brokerage or finders’ fees or agents’ commissions or other similar payment in connection with the sale of the Assets or the transactions contemplated hereby.

 

Section 2.20         Accounts Receivable. All Accounts Receivable that are reflected on the Interim Balance Sheet or on the accounting Records of Seller as of the Closing Date represent or will represent valid obligations arising from services actually performed by Seller in the ordinary course of business. Except to the extent paid prior to the Closing Date, such Accounts Receivable are or will be as of the Closing Date collectible net of the respective reserves shown on the Interim Balance Sheet (which reserves are adequate and calculated consistent with past practice). Subject to such reserves, each of such Accounts Receivable either has been or will be collected in full, without any set-off, within 365 days after the day on which it first becomes due and
payable. Schedule 2.20 contains a complete and accurate list of all Accounts Receivable as of the date of the Interim Balance Sheet, which list sets forth the aging of each such Account Receivable.

 

Section 2.21         Customers and Suppliers. Since September 30, 2005, there has been no adverse change in the business relationship of Seller with any material customer or supplier. Seller has not received any notice that any material customer or supplier has any intention to terminate or materially reduce purchases from or supplies to Seller on account of the consummation of the transactions contemplated hereby or otherwise.

 

Section 2.22         Books and Records. The books of account and other financial records of Seller are complete and correct in all material respects and have been maintained in accordance with sound business practices and in accordance with applicable laws and regulations.

 

Section 2.23         Bank Accounts. Schedule 2.23 contains a complete and accurate list of all bank accounts and safe deposit boxes in the name of or controlled by the Seller, and the person or persons authorized to act or sign on behalf of the Seller in respect of any of the foregoing.

 

Section 2.24         Prepayments and Deposits. Schedule 2.24 sets forth a complete and accurate list of all prepayments or deposits from customers for services to be performed after the Closing Date which have been received by Seller as of the date hereof.

 

Section 2.25         Disclosure. No representation or warranty or other statement made by Seller or the Members in this Agreement or in any certificate to be delivered hereunder, contains or will contain any untrue statement of a material fact or omits, or will omit, to state a material 

 

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fact necessary to make any of them, not misleading. There does not now exist any event, condition, or other matter, individually or in the aggregate, adversely affecting Seller or the Seller’s business, prospects, financial condition, or results of its operations that has not been set forth this Agreement.

 

Section 2.26         Brokers. No brokers have been hired or contracted by the Seller for the transaction contemplated under this Agreement.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF BUYER

 

	
Buyer represents and warrants to Seller as follows:

 

Section 3.1           Organization and Good Standing. Buyer is a corporation duly organized, validly existing, and in good standing under the laws of the State of Nevada, with full corporate power and authority to conduct its business as it is now being conducted. 

 

	
Section 3.2

	
Authority, No Conflict.

 

(a)               This Agreement constitutes the legal, valid, and binding obligation of Buyer, enforceable against it in accordance with its terms. Upon the execution and delivery by Buyer of each of the documents and instruments to be executed and delivered by Buyer at Closing pursuant to Section 1.7(b) (collectively, the “Buyer’s Closing Documents”), each of the Buyer’s Closing Documents will constitute the legal, valid, and binding obligation of Buyer, enforceable against it in accordance with its terms. Buyer has the absolute right, power and authority to execute and deliver this Agreement and the Buyer’s Closing Documents and to perform its obligations under this
Agreement and the Buyer’s Closing Documents, and such action has been duly authorized by all necessary corporate action.

 

(b)               Neither the execution and delivery of this Agreement by Buyer nor the consummation or performance of any of the transactions contemplated hereby by Buyer will (with or without notice or lapse of time): (i) contravene, conflict with or result in a violation of any provision of Buyer’s certificate of incorporation or bylaws; (ii) contravene, conflict with or result in a violation of any Legal Requirement or Order of any court or governmental authority to which Buyer or its assets are subject, or (iii) conflict with or result in the breach or termination of any term or provision of, or constitute a default under, or cause any acceleration under, or cause the creation of any Encumbrance upon the properties or assets of the Buyer pursuant to, any indenture, mortgage, deed
of trust or other agreement or instrument to which the Buyer is a party or by which the Buyer or any of its properties is or may be bound. 

 

Section 3.3           Consents and Approvals. Schedule 3.3 sets forth a complete and accurate list of all consents and approvals of third parties that are required in connection with the consummation by the Buyer of the transactions contemplated by this Agreement, all of which consents and approvals either have been obtained or will be obtained prior to the Closing Date. 

 

Section 3.4           Regulatory Approvals. All consents, approvals, authorizations or other requirements prescribed by any law, rule or regulation that must be obtained or satisfied by the 

 

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Buyer and that are necessary for the consummation of the transactions contemplated by this Agreement have been, or will be prior to the Closing Date, obtained and satisfied. 

 

Section 3.5           Availability of Financing. Buyer has no reason to believe that the private placement for the funds necessary to finance the Buyer to consummate the transactions contemplated by this Agreement will not be available to Buyer on the Closing Date. 

 

Section 3.6           Brokers or Finders. Buyer will be responsible for any brokers it has utilized for this transaction, including but not limited to valid claims for payment from such brokers. 

 

ARTICLE IV.

COVENANTS OF SELLER PRIOR TO CLOSING

 

Section 4.1           Access and Investigation. Between the date of this Agreement and the Closing Date, and upon reasonable advance notice received from Buyer, Seller shall (a) afford Buyer and its Representatives and prospective lenders and their Representatives (collectively, the “Buyer Group”) full and free access, during normal business hours, to Seller’s management personnel offices, properties offices, and books and records, such rights of access to be exercised in a manner that does not unreasonably interfere with the operations of Seller, (b) furnish the Buyer Group with copies of all such Contracts, Governmental Authorizations, books and records, and other existing data as Buyer may reasonably
request, (c) furnish the Buyer Group with such additional financial, operating, and other relevant data and information as Buyer may reasonably request, and (d) otherwise cooperate and assist, to the extent reasonably requested by Buyer, with Buyer’s investigation of the properties, assets, and financial condition of the Seller. 

 

Section 4.2           Operation of the Business of Seller. Between the date of this Agreement and the Closing Date, Seller shall:

 

(a)               conduct the business of the Seller only in the Ordinary Course of Business (as defined below); 

 

(b)               use its commercially reasonable efforts to preserve intact the current business organization of the Seller, keep available the services of the Seller’s officers, employees, and agents, and maintain the Seller’s relations and good will with suppliers, customers, landlords, creditors, employees, agents, and others having business relationships with it;

 

(c)               confer with Buyer prior to implementing operational decisions of a material nature; and

 

(d)               otherwise report periodically to Buyer concerning the status of the business, operations, and finances of the Seller.

 

“Ordinary Course of Business” means an action that is consistent in nature and scope with Seller’s past practices, taken in the ordinary course of the normal day-to-day operations of Seller and that does not require specific authorization by the Members of Seller.

 

 

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Section 4.3           Negative Covenant. Except in the Ordinary Course of Business or as otherwise expressly permitted herein, between the date of this Agreement and the Closing Date, Seller shall not, without the prior written Consent of Buyer: 

 

(a)               pay or increase any bonuses, salaries, or other compensation to any Member, director, officer, or employee or entry into any severance or similar contract with any director, officer, or employee;

 

(b)               adopt, amend or increase the payments to or benefits under, any Employee Benefit Plan with respect to the Employees;

 

(c)               mortgage, pledge, or impose any Encumbrance on any Asset of the Seller;

 

(d)               modify any material Seller Contract or Governmental Authorization; 

 

(e)               cancel or waive any claims or rights with a value to Seller in excess of $10,000; or

 

(f)                agree, whether orally or in writing, to do any of the foregoing. 

 

Section 4.4.          Notification. Between the date of this Agreement and the Closing Date, Seller shall promptly notify Buyer in writing if it becomes aware of (a) any fact or condition that causes or constitutes a breach of any of Seller’s representations and warranties made as of the date of this Agreement, or (b) the occurrence after the date of this Agreement of any fact or condition that would or be reasonably likely to (except as expressly contemplated by this Agreement) cause any such representation or warranty to be inaccurate or incomplete in any material respect, had that representation or warranty been made as of the time of the occurrence of, or Seller’s discovery of, such fact or condition. Should any such fact or condition require any change to the
Schedules, Seller shall promptly deliver to Buyer a supplement to the Schedules specifying such change. 

 

Section 4.5           No Negotiation. Until such time as this Agreement is terminated pursuant to Section 9.1, Seller shall not directly or indirectly solicit, initiate, encourage or entertain any inquiries or proposals from, discuss or negotiate with, provide any non-public information to, or consider the merits of any inquiries or proposals from, any person (other than Buyer) relating to any business combination transaction involving Seller, including the sale by the Shareholders of Seller’s stock, the merger or consolidation of Seller, or the sale of the Business or any of the Assets (other than in the Ordinary Course of Business). Seller shall promptly notify Buyer of any such inquiry or proposal.

 

Section 4.6           Best Efforts. Seller and the Members shall use their best efforts to cause the conditions in Article VI and Article VII to be satisfied.

 

 

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Section 4.7           Payment of Liabilities. Seller shall pay or otherwise satisfy in the Ordinary Course of Business all of its liabilities and obligations. Buyer and Seller hereby waive compliance with the bulk transfer provisions of the Uniform Commercial Code (or any similar law) (“Bulk Sales Laws”) in connection with the contemplated transactions.

 

Section 4.8           Change of Name. On or before the Closing Date, Seller shall take all other actions necessary to amend its certificate of organization and change its name to one sufficiently dissimilar to Seller’s present name to avoid confusion.

 

ARTICLE V

COVENANTS OF BUYER PRIOR TO CLOSING

 

Section 5.1           Required Approvals. As promptly as practicable after the date of this Agreement, Buyer shall obtain all consents and approvals as identified in Schedule 3.3. Buyer also shall fully cooperate with Seller in obtaining all consents identified in Schedule 2.2(c). 

 

Section 5.2           Best Efforts. Buyer shall use its best efforts to cause the conditions in Article VI and Article VII to be satisfied.

 

Section 5.3           Notification. Between the date of this Agreement and the Closing Date, Buyer shall promptly notify Seller in writing if it becomes aware of the occurrence after the date of this Agreement of any fact or condition that would or be reasonably likely to (except as expressly contemplated by this Agreement) cause any such representation or warranty to be inaccurate or incomplete in any material respect, had that representation or warranty been made as of the time of the occurrence of, or Buyer’s discovery of, such fact or condition. Should any such fact or condition require any change to the Schedules, Buyer shall promptly deliver to Seller a supplement to the Schedules specifying such change.

 

ARTICLE VI

CONDITIONS PRECEDENT TO BUYER’S OBLIGATION TO CLOSE

 

Buyer’s obligation to purchase the Assets and to take the other actions required to be taken by Buyer at the Closing is subject to the satisfaction, at or prior to the Closing, of each of the following conditions (any of which may be waived by Buyer, in whole or in part):

 

Section 6.1           Accuracy of Representations. The representations and warranties of Seller in this Agreement shall be accurate in all material respects as of the Closing Date as if made on the Closing Date, except for any changes consented to in writing by Buyer.

 

Section 6.2           Seller’s Performance. All of the covenants and obligations that Seller is required to perform or to comply with pursuant to this Agreement at or prior to the Closing shall have been duly performed and complied with in all material respects.

 

Section 6.3           Consents. Each of the consents identified in Exhibit 6.3 (the “Material Consents”) must have been obtained and must be in full force and effect.

 

 

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Section 6.4           Availability of Financing. Buyer shall have received financing in an amount sufficient to consummate the transactions contemplated under this Agreement. 

 

Section 6.5           Additional Documents. Seller must have caused the documents and instruments required by Section 1.7(a) and the following documents to be delivered (or tendered subject only to Closing) to Buyer:

 

(a)               A statement from the holder of each note listed on Schedule 1.4(a)(iii), if any, dated the Closing Date, setting forth the principal amount then outstanding on the indebtedness represented by such note, the interest rate thereon, and a statement to the effect that Seller, as obligor under such note, is not in default under any of the provisions thereof;

 

(b)               releases of all Encumbrances on the Assets, other than Permitted Encumbrances;

 

(c)               certificates dated as of a recent date prior to the Closing as to the good standing of Seller and payment of all applicable state Taxes by Seller, from the appropriate officials of the State of New York and each jurisdiction in which Seller is licensed or qualified to do business as a foreign corporation as specified in Schedule 2.l. To the extent that such certificates cannot be provided prior to Closing, seller agrees to indemnify and hold harmless Buyer for the non-payment of sales taxes for any of the jurisdictions in which Seller is licensed and qualified to do business as a foreign corporation; and

 

(d)               such other documents as Buyer may reasonably request with reasonable notice for the purpose of (i) evidencing the satisfaction of any condition referred to in this Article VI, or (ii) otherwise facilitating the consummation or performance of any of the Contemplated Transactions.

 

Section 6.6           No Proceedings. Since the date of this Agreement, there has not been commenced or threatened proceeding or action (a) involving any challenge to, or seeking damages or other relief in connection with, any of the contemplated transactions, or (b) that may have the effect of preventing, making illegal, imposing limitations or conditions on, or otherwise interfering, with any of the contemplated transactions.

 

Section 6.7           Governmental Authorizations. Buyer must have received such Governmental Authorizations as are necessary or desirable to allow Buyer to operate the Assets from and after the Closing.

 

ARTICLE VII

CONDITIONS PRECEDENT TO SELLER’S OBLIGATION TO CLOSE

 

Seller’s obligation to sell the Assets and to take the other actions required to be taken by Seller at the Closing is subject to the satisfaction, at or prior to the Closing, of each of the following conditions (any of which may be waived by Seller, in whole or in part):

 

 

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Section 7.1           Accuracy of Representations. All of Buyer’s representations and warranties in this Agreement must be accurate in all material respects as of the Closing Date as if made on the Closing Date.

 

Section 7.2           Buyer’s Performance. All of the covenants and obligations that Buyer is required to perform or to comply with pursuant to this Agreement at or prior to the Closing must have been performed and complied with in all material respects. 

 

Section 7.3           Consents. Each of the Consents identified in Exhibit 6.3 must have been obtained and must be in full force and effect.

 

Section 7.4           Additional Documents. Buyer must have caused the documents and instruments required by Section 1.7(b) and the following documents to be delivered (or tendered subject only to Closing) to Seller and Members:

 

(a)               an opinion of the Law Offices of Morton S. Taubman, dated the Closing Date, in a form customary for similar transactions; and

 

(b)               such other documents as Seller may reasonably request for the purpose of evidencing the satisfaction of any condition referred to in this Article VII.

 

Section 7.5           No Injunction. There must not be in effect any Legal Requirement or any injunction or other Order that (a) prohibits the consummation of the Contemplated Transactions, and (b) has been adopted or issued, or has otherwise become effective, since the date of this Agreement.

 

ARTICLE VIII

ADDITIONAL COVENANTS

 

	
Section 8.1

	
Employees and Employee Benefits.

 

(a)                Effective immediately before the Closing Date, Seller shall novate any employment agreements it may have to the Buyer (the “Available Employees”) and shall release such Available Employees from the provisions of any restrictive covenants and/or agreements with Seller with respect to Buyer so as to enable Buyer to employ such individuals. 

 

(b)               It is understood and agreed that (i) any offer of employment made by Buyer as referenced in Section 8.1(a) above will not constitute any commitment, contract or understanding (expressed or implied) of any obligation on the part of Buyer to a post-Closing Date employment relationship of any fixed term or duration or upon any terms or conditions other than those that Buyer may establish pursuant to individual offers of employment; and (ii) employment offered by Buyer is “at will” and may be terminated by Buyer or by an employee at anytime for any reason (subject to any written commitments to the contrary made by Buyer). 

 

(c)               Seller will be responsible for (i) the payment of all wages and other remuneration due to its Employees with respect to their services as employees of Seller through the close of business on the Closing Date. 

 

 

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Section 8.2           Payment of Taxes Resulting From Sale of Assets by Seller. Seller shall pay in a timely manner all taxes (other than income taxes) imposed on it resulting from or payable in connection with the sale of the Assets pursuant to this Agreement.

 

Section 8.3           Payment of Other Retained Liabilities. In addition to payment of taxes pursuant to Section 8.2, Seller shall pay, or make adequate provision for the payment, in full of all of the Retained Liabilities. If any such Retained Liabilities are not so paid or provided for, or if Buyer reasonably determines that failure to make any payments will impair Buyer’s use or enjoyment of the Assets or conduct of the business of the Seller previously conducted using the Assets, Buyer may at any time after the Closing Date elect to make all such payments directly or through the escrow (but shall have no obligation to do so) and will be promptly reimbursed therefor by Seller. 

 

	
Section 8.4

	
Covenant Not to Compete. 

 

(a)               In consideration of the Purchase Price to be received under this Agreement, Seller agrees that, for a period of three (3) years after the Closing Date, they shall not directly or indirectly, do any of the following:

 

(i)                engage in, or invest in, own, manage, operate, finance, control, be employed by, associated with or in any manner connected with, or render services or advice or other aid to, any person engaged in or planning to become engaged in, or any other business whose products or activities compete in whole or in part with, the business of Buyer, or any business carried on by Buyer utilizing the Assets, anywhere within the continental United States;

 

(ii)               induce or attempt to induce any employee of Buyer to leave the employ of Buyer, in any way interfere with the relationship between Buyer and any employee of Buyer, or solicit, offer employment to, otherwise attempt to hire, employ, or otherwise engage as an employee, independent contractor, or otherwise, any such employee; or

 

(iii)              induce or attempt to induce any person that was a customer, client or business relation of Buyer at any time during the one (1) year period preceding the Closing Date to cease doing business with Buyer, in any way interfere with the relationship between Buyer and any such customer, client or business relation, or solicit the business of any such customer, client or business relation.

 

(b)               Seller acknowledges that all of the foregoing provisions are reasonable and are necessary to protect and preserve the value of the Assets and to prevent any unfair advantage being conferred on Seller. If any of the covenants set forth in this Section 8.4 are held to be unreasonable, arbitrary, or against public policy, the restrictive time period herein will be deemed to be the longest period permissible by law under the circumstances and the restrictive geographical area herein will be deemed to comprise the largest territory permissible by law under the circumstances.

 

(c)               The provisions of this Section 8.4 shall be deemed to apply to Safir Rosetti LLC only. Any restrictive covenants to not compete for individual employee Members of Safir 

 

 

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Rosetti LLC shall be as per the terms and conditions of their individual employee agreements with Buyer.

 

Section 8.5           Customer and Other Business Relationships. After the Closing, Seller shall cooperate with Buyer in its efforts to continue and maintain for the benefit of Buyer those business relationships of Seller existing prior to the Closing and relating to the business to be operated by Buyer after the Closing, including relationships with lessors, employees, regulatory authorities, licensors, customers, suppliers and others, and Seller will satisfy the Retained Liabilities in a manner which is not detrimental to any of such relationships. Seller will refer to Buyer all inquiries relating to the Business. Neither Seller nor any of its officers or employees, shall take any action which would tend to diminish the value of the Assets after the Closing or which
would interfere with the business of Buyer to be engaged in after the Closing.

 

Section 8.6           Retention and Access to Records. After the Closing Date, Buyer shall retain for a period of seven (7) years those records of Seller delivered to Buyer. Buyer also shall provide Seller and a representative of the Members reasonable access thereto, during normal business hours and on at least three (3) days’ prior written notice, to enable them to prepare financial statements or tax returns or deal with tax audits. After the Closing Date, Seller shall provide Buyer and Buyer’s representatives reasonable access to records that are Excluded Assets, during normal business hours and on at least three (3) days’ prior written notice, for any reasonable business purpose specified by Buyer in such notice.

 

ARTICLE IX

TERMINATION

 

Section 9.1           Termination Events. This Agreement may be terminated by written notice given prior to or at the Closing, subject to Section 9.2 as follows:

 

(a)               by Buyer or Seller if a material breach of any provision of this Agreement has been committed by the other party and such breach has not been waived by the non-breaching party;

 

(b)               by Buyer if any condition in Article VI has not been satisfied as of the date specified for Closing Date; or if satisfaction of such a condition by such date is or becomes impossible (other than through the failure of Buyer to comply with its obligations under this Agreement).

 

(c)               by Seller, if any condition in Article VII has not been satisfied as of the date specified for Closing Date or if satisfaction of such a condition by such date is or becomes impossible (other than through the failure of Seller or the Members to comply with their obligations under this Agreement) and Seller has not waived such condition on or before such date;

 

(d)               by mutual consent of Buyer and Seller; or 

 

 

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(e)               by Buyer or Seller if the Closing has not occurred on or before February 28, 2006 or such later date as the parties may agree upon or as provided herein, unless the party giving notice of termination is in material breach of this Agreement.

 

Section 9.2           Effect of Termination. Each party’s right of termination under Section 9.1 is in addition to any other rights it may have under this Agreement or otherwise, and the exercise of such right of termination will not be an election of remedies. If the Agreement is terminated pursuant to Section 9.1, all obligations of the parties under this Agreement will terminate, except that the obligations of (a) the parties in this Section 9.2 and Article X; and (b) Buyer in Section 9.3, will survive; provided,
however, that if this Agreement is terminated because of a breach of this Agreement by the non-terminating party or because one or more of the conditions to the terminating party’s obligations under this Agreement is not satisfied as a result of the party’s failure to comply with its obligations under this Agreement, the terminating party’s right to pursue all legal remedies will survive such termination unimpaired.

 

Section 9.3           Financing Fees. In the event this Agreement is terminated due to Buyer failing to accomplish the financing contemplated in Section 3.5 or otherwise terminated in the absence of material misrepresentation by Seller, on or before the Closing Date, Buyer shall immediately pay to Seller an amount in cash equal to the total amount of third-party fees and expenses directly incurred by Seller in connection with the transactions contemplated by this Agreement, including all counsel fees and expenses, and all audit and accounting fees and expenses incurred in connection with the preparation of the Financial Statements, in an amount not to exceed $50,000.

 

ARTICLE X

INDEMNIFICATION 

 

Section 10.1         Survival. All representations, warranties, covenants, and obligations in this Agreement, the Schedules attached hereto, and the certificates delivered pursuant to Section 1.7, will survive the Closing and the consummation of the transactions contemplated hereby. The right to indemnification, reimbursement, or other remedy based on such representations, warranties, covenants, and obligations will not be affected by any investigation conducted with respect to, or any knowledge acquired (or capable of being acquired) about, the accuracy or inaccuracy of or compliance with, any such representation, warranty, covenant or obligation. Buyer is not aware of any facts or circumstances that would serve as the basis for a
claim by Buyer against Seller based upon a breach of any of the representations and warranties of the Seller contained in this Agreement or breach of any of Seller’s covenants or agreements to be performed at or prior to Closing. Buyer will be deemed to have waived in full any breach of any of Seller’s representations and warranties and any such covenants and agreements of which Buyer has awareness at the Closing.

 

Section 10.2         Indemnification and Reimbursement By Seller.. Seller shall indemnify and hold harmless Buyer, and its directors, stockholders, members, partners, employees, representatives, and agents (collectively, the “Buyer Indemnified Persons”), and shall reimburse the Buyer Indemnified Persons, for any loss, liability, claim, damage or expense (including costs of investigation and defense and reasonable attorneys’ fees and expenses) whether or not 

 

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involving a third-party claim (collectively, “Damages”), arising, directly or indirectly, from or in connection with:

 

(a)               any breach of any representation or warranty made by Sellerin this Agreement, or the certificates delivered pursuant to Section 1.7;

 

(b)               any breach of any covenant or obligation of Seller in this Agreement; and 

 

(c)               any Retained Liabilities. 

 

Section 10.3         Indemnification and Reimbursement by Buyer. Buyer shall indemnify and hold harmless Seller and its directors, Members, partners, employees, representatives, and agents (collectively, the “Seller Indemnified Persons”), and shall reimburse the Seller Indemnified Persons for any Damages arising, directly or indirectly, from or in connection with:

 

(a)               any breach of any representation or warranty made by Buyer in this Agreement or in any certificate or document delivered by Buyer pursuant to this Agreement; 

 

(b)               any breach of any covenant or obligation of Buyer in this Agreement or in any other document, writing, or instrument delivered by Buyer pursuant to this Agreement; and

 

(c)               the Assumed Liabilities. 

 

	
Section 10.4

	
Time Limitations.

 

(a)               Seller will have no indemnification liability for the breach of any representation or warranty set forth in Article II, unless on or before the second anniversary of the Closing Date, Buyer notifies Seller of a breach specifying the factual basis of that breach in reasonable detail to the extent then known by Buyer and providing a reasonable opportunity to cure; provided, however, that any claim with respect to Section 2.8 taxes, 2.10 employee benefits, or 2.11 environmental matters may be made at any time, subject to the applicable period of statute of limitations.

 

(b)               Buyer will have no indemnification liability for the breach of any representation or warranty set forth in Article III, unless on or before the second anniversary of the Closing Date, Seller notifies Buyer of a breach specifying the factual basis of that breach in reasonable detail to the extent then known by Seller.

 

Section 10.5         Procedure for Indemnification - Third Party Claims. If, after the Closing Date, either a Buyer Indemnified Person or Seller Indemnified Person, as the case may be (the “Indemnitee”), receives notice of any third-party claim or alleged third-party claim asserting the existence of any matter of a nature as to which the Indemnitee is entitled to be indemnified under this Agreement, the Indemnitee shall promptly notify Seller or the Members, or Buyer, as the case may be (the “Indemnitor”), in writing with respect thereto, but the failure to notify the 

 

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Indemnitor will not relieve the Indemnitor of any liability that it may have to an Indemnitee, except to the extent that the Indemnitor demonstrates that the defense of such action has been prejudiced by the Indemnitee’s failure to give such notice. The Indemnitor will have the right to defend against any such claim provided (a) that the Indemnitor, within ten (10) days after the giving of such notice by Indemnitee, notifies Indemnitee in writing that (i) Indemnitor disputes such claim and gives reasons therefor, and (ii) Indemnitor will, at its own cost and expense, defend the same, and (b) such defense is instituted and continuously maintained in good faith by Indemnitor. Indemnitee may, if it so elects, designate and pay for its own counsel to participate with the counsel selected by Indemnitor in the conduct of such defense. Indemnitor will not permit any lien or execution to attach to the assets of Indemnitee as
a result of such claim, and the Indemnitor shall provide such bonds or deposits as are necessary to prevent the same. In any event, Indemnitor will keep Indemnitee fully advised as to the status of such defense. If Indemnitor is given notice of a claim as aforesaid and fails to notify Indemnitee of its election to defend such claim within the time prescribed herein, or after having elected to defend such claim fails to institute and maintain such defense as prescribed herein, or if such defense is unsuccessful then, in any such event, the Indemnitor shall fully satisfy and discharge the claim within ten (10) days after notice from the Indemnitee requesting Indemnitor to do so. If the Indemnitor assumes the defense of any action or proceeding (y) no compromise or settlement of such claims may be effected by the Indemnitor without the Indemnitee’s consent unless (A) there is no finding or admission of any violation of any legal requirement or any violation of the rights of any person and no effect
on any other claims that may be made against the Indemnitee, and (B) the sole relief provided is monetary damages that are paid in full by the Indemnitor; and (z) the Indemnitee will have no liability with respect to any compromise or settlement of such claims effected without its consent. 

 

Section 10.6         Procedure For Indemnification - Other Claims. A claim for indemnification for any matter not involving a third-party claim may be asserted by notice to the party from whom indemnification is sought.

 

ARTICLE XI

GENERAL PROVISIONS

 

Section 11.1         Expenses. Except as otherwise expressly provided in this Agreement, each party to this Agreement shall bear its respective expenses incurred in connection with the preparation, execution, and performance of this Agreement and the transactions contemplated hereby, including all fees and expenses of its representatives.

 

Section 11.2         Notices. All notices, consents, waivers, and other communications under this Agreement must be in writing and will be deemed to have been duly given when (a) delivered by hand (with written confirmation of receipt), (b) sent by facsimile with confirmation of transmission by the transmitting equipment, (c) received by the addressee, if sent by certified mail, return receipt requested, (d) sent by email; or (e) received by the addressee, if sent by a nationally recognized overnight delivery service, in each case to the appropriate addresses or facsimile numbers set forth below (or to such other addresses or facsimile numbers as a party may designate by notice to the other parties):

 

 

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Buyer:

	
GlobalOptions Group, Inc.

	
 

	
 

	
75 Rockefeller Plaza, 27th Floor

	
 

	
New York, NY 10019

	
 

				

 

	
Attn: Jeff Nyweide

	
 

	
Fax: 212-445-0054

	
 

	
Email: jnyweide@globaloptions.com

			

 

	
with a copy to:

	
Morton S. Taubman, Esq.

	
 

	
 

	
1201 15th Street, N.W., Second Floor

	
 

	
Washington, D.C. 20005

	
 

	
 

	
Fax: 202-659-2679

	
 

	
 

	
Email: mtaubman@isiwdc.com

	
 

						

 

	
 

	
Seller

	
SafirRosetti, LLC

	
 

	
 

	
or Members:

	
415 Madison Avenue

	
 

	
 

	
17th Floor

	
 

	
 

	
New York, NY 10017

	
 

	
 

	
Attn: Howard Safir

	
 

	
 

	
Fax: 212-817-6728

	
 

	
`

	
Email: hsafir@safirrosetti.com

								

 

Section 11.3         Jurisdiction. The parties agree that the state and federal courts located in New York City, New York, will be the sole venue and will have sole jurisdiction for the resolution of all disputes arising hereunder. Process in any action or proceeding referred to in the preceding sentence may be served on any party anywhere in the world.

 

Section 11.4         Waiver. No failure to exercise, and no delay in exercising, on the part of either party, any right hereunder will operate as a waiver thereof, nor will any single or partial exercise of any right hereunder preclude further exercise of any other right hereunder.

 

Section 11.5         Entire Agreement and Modification. This Agreement, together between Seller and Buyer and the Schedules, Exhibits, and other documents delivered pursuant to this Agreement, constitutes a complete and exclusive statement of the terms of the agreement between the parties with respect to its subject matter and supersedes all prior agreements, whether written or oral, between the parties with respect to its subject matter. This Agreement may not be amended except by a written agreement signed on behalf of each of the parties hereto. Provided, however, the Buyer shall have a right to waive any conditions contained in Article 6 to accomplish the Closing without the consent of the Seller. 

 

Section 11.6         Assignments, Successors, and No Third-Party Rights. No party may assign any of its rights or delegate any of its obligations under this Agreement without the prior written consent of the other parties, except that Buyer may assign any of its rights and delegate any of its obligations under this Agreement (i) to any affiliate of Buyer, and (ii) in connection with the sale of all or substantially all of the assets of Buyer, provided that no such assignment or delegation will relieve Buyer from any of its obligations hereunder. Subject to the preceding sentence, this Agreement will apply to, be binding in all respects upon, and inure to the benefit of the successors and permitted assigns of the parties. Nothing in this Agreement will be construed 

 

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to give any person other than the parties to this Agreement any legal or equitable right under or with respect to this Agreement or any provision of this Agreement, except such rights as shall inure to a successor or permitted assignee pursuant to this Section 11.6.

 

Section 11.7         Severability. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect. The parties agree that if any provision contained herein is, to any extent, held invalid or unenforceable in any respect under the laws governing this Agreement, they shall take any actions necessary to render the remaining provisions of this Agreement valid and enforceable to the fullest extent permitted by law and, to the extent necessary, shall amend or otherwise modify this Agreement to replace any provision contained herein that is held invalid or unenforceable with a valid and enforceable provision giving effect to the intent of the parties.

 

Section 11.8         Section Headings, Construction. The headings of Articles and Sections in this Agreement are provided for convenience only and will not affect its construction or interpretation. All Exhibits and Schedules to this Agreement are incorporated into and constitute an integral part of this Agreement as if fully set forth herein. All words used in this Agreement will be construed to be of such gender or number as the context requires. The language used in the Agreement shall be construed, in all cases, according to its fair meaning, and not for or against any party hereto. The parties acknowledge that each party has reviewed this Agreement and that rules of construction to the effect that any ambiguities are to be resolved against the drafting party will not be
available in the interpretation of this Agreement.

 

Section 11.9         Governing Law. This Agreement will be governed by and construed under the laws of the State of New York without regard to conflicts of laws principles that would require the application of any other law.

 

Section 11.10      Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement.

 

Section 11.11      Further Assurances. The parties shall cooperate reasonably with each other and with their respective representatives in connection with any steps required to be taken as part of their respective obligations under this Agreement, and the parties agree (a) to furnish upon request to each other such further information, (b) to execute and deliver to each other such other documents, and (c) to do such other acts and things, all as the other party may reasonably request for the purpose of carrying out the intent of this Agreement and the transactions contemplated hereby.

 

Section 11.12      Legal Fees. In the event that legal proceedings are commenced by Buyer against Seller, or by Seller against Buyer, in connection with this Agreement or the transactions contemplated hereby, the party or parties that do not prevail in such proceedings shall pay the reasonable attorneys’ fees and expenses incurred by the prevailing party in such proceedings in the event of a ruling by a court of competent jurisdiction in favor of the prevailing party. 

 

 

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IN WITNESS WHEREOF, the parties have executed this Asset Purchase Agreement as of the date first written above.

 

	
BUYER:

	
 

	
 

	
 

	
GLOBALOPTIONS GROUP, INC.

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Havey W. Schiller

	
Name: 

	
Havey W. Schiller

	
Its: 

	
Chairman and Chief Executive Officer

	
 

	
 

	
SELLER:

	
 

	
 

	
 

	
SAFIRROSETTI, LLC 

	
 

	
 

	
 

	
By: 

	
/s/ Howard Safir

	
 

	
Howard Safir, Managing Member

	
 

	
 

	
 

	
 

	
By:

	
/s/ Joseph Rosetti

	
 

	
Joseph Rosetti, Managing Member

				

 

 

 

Asset Purchase Agrement

Signature Page

 

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EXHIBITS AND ANNEX

 

	
ANNEX A: 

	
Permitted Encumbrances 

 

	
EXHIBIT 1.3:

	
Purchase Price Adjustment

 

	
EXHIBIT 1.3a:

	
Form of Promissory Note

 

	
EXHIBIT 1.5: 

	
Purchase Allocation

 

	
EXHIBIT 1.7(a)(ii):

	
Form of Form of Assignment & Assumption

 

	
EXHIBIT 1.7(a)(iii):

	
Assignment and Assumption of Lease

 

	
EXHIBIT 1.7(a)(v):

	
Escrow Agreement

 

	
EXHIBIT 1.7(a)(vi):

	
Employment Agreements

 

	
EXHIBIT 1.7(a)(vii):

	
Non-competition/Employment Agreements:

 

	
EXHIBIT 6.3:

	
Material Consent

 

 

 

SCHEDULES

 

	
Schedule 1.4(a)

	
Assumed Liablities

 

	
Schedule 2.1

	
Good Standing Certificates

 

	
Schedule 2.2

	
Consents

 

	
Schedule 2.3

	
Membership Interests

 

	
Schedule 2.4

	
Financial Statements

 

	
Schedule 2.6

	
Real Property Leases

 

	
Schedule 2.7

	
Tangible Personal Property

 

	
Schedule 2.9

	
Employees

 

	
Schedule 2.10

	
Employee Benefits

 

	
Schedule 2.11

	
Compliance 

 

	
Schedule 2.12(a)

	
Legal Proceedings

 

	
Schedule 2.13

	
Insurance Policies

 

	
Schedule 2.14

	
Seller Contracts

 

	
Schedule 2.15

	
Intellectual Properties

 

	
Schedule 2.16

	
Related Person Transactions

 

	
Schedule 2.20

	
Accounts Receivable

 

	
Schedule 2.23

	
Bank Accounts

 

	
Schedule 2.24

	
Prepayments and Deposits

 

	
Schedule 3.3

	
Buyer Consents and Approvals

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}]]