Document:

3rd Amended & Restated Rights Agmt dated 01/30/03

Exhibit 4.01 
 
INTUIT INC. 
 
AND 
 
AMERICAN STOCK TRANSFER AND TRUST COMPANY, 
 
RIGHTS AGENT 
 
THIRD AMENDED AND RESTATED 
 
RIGHTS AGREEMENT 
 
DATED AS OF JANUARY 30, 2003 

TABLE OF CONTENTS 
 

	  	   	  	   	  Page

	
	  Section 1.
	   	  Certain Definitions
	   	  2

	
	  Section 2.
	   	  Appointment of Rights Agent
	   	  5

	
	  Section 3.
	   	  Issue of Right Certificates
	   	  5

	
	  Section 4.
	   	  Form of Right Certificates
	   	  6

	
	  Section 5.
	   	  Countersignature and Registration
	   	  7

	
	  Section 6.
	   	  Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right
Certificates
	   	  7

	
	  Section 7.
	   	  Exercise of Rights; Purchase Price; Expiration Date of Rights
	   	  8

	
	  Section 8.
	   	  Cancellation and Destruction of Right Certificates
	   	  9

	
	  Section 9.
	   	  Status and Availability of Preferred Shares
	   	  9

	
	  Section 10.
	   	  Preferred Shares Record Date
	   	  10

	
	  Section 11.
	   	  Adjustment of Purchase Price, Number of Shares or Number of Rights
	   	  10

	
	  Section 12.
	   	  Certificate of Adjusted Purchase Price or Number of Shares
	   	  17

	
	  Section 13.
	   	  Consolidation, Merger or Sale or Transfer of Assets or Earning Power
	   	  17

	
	  Section 14.
	   	  Fractional Rights and Fractional Shares
	   	  18

	
	  Section 15.
	   	  Rights of Action
	   	  19

	
	  Section 16.
	   	  Agreement of Right Holders
	   	  19

	
	  Section 17.
	   	  Right Certificate Holder Not Deemed a Stockholder
	   	  20

	
	  Section 18.
	   	  Compensation and Indemnity of the Rights Agent
	   	  20

	
	  Section 19.
	   	  Merger or Consolidation or Change of Name of Rights Agent
	   	  20

 

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	  Section 20.
	   	  Rights and Duties of Rights Agent
	   	  21

	
	  Section 21.
	   	  Change of Rights Agent
	   	  23

	
	  Section 22.
	   	  Issuance of New Right Certificates
	   	  23

	
	  Section 23.
	   	  Redemption
	   	  24

	
	  Section 24.
	   	  Exchange
	   	  25

	
	  Section 25.
	   	  Notice of Certain Events
	   	  26

	
	  Section 26.
	   	  Notices
	   	  27

	
	  Section 27.
	   	  Supplements and Amendments
	   	  27

	
	  Section 28.
	   	  Successors
	   	  28

	
	  Section 29.
	   	  Benefits of this Agreement
	   	  28

	
	  Section 30.
	   	  Severability
	   	  28

	
	  Section 31.
	   	  Governing Law
	   	  28

	
	  Section 32.
	   	  Counterparts
	   	  28

	
	  Section 33.
	   	  Descriptive Headings
	   	  28

	
	  Section 34.
	   	  Entire Agreement
	   	  28

	
	  Signatures
	   	  	   	  29

	
	  Exhibit A-  
	   	  Form of Certificate of Designations of Series B Junior Participating Preferred Stock
	   	  
	
	  Exhibit A1
	   	  Form of Certificate of Increase of Series B Junior Participating Preferred Stock
	   	  
	
	  Exhibit B-  
	   	  Form of Right Certificate
	   	  
	
	  Exhibit C-  
	   	  Summary of Rights to Purchase Preferred Shares
	   	  

 
 

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THIRD AMENDED AND RESTATED 
RIGHTS AGREEMENT 
 
Agreement, amended and restated as of January 30, 2003, between Intuit Inc., a Delaware corporation (the “Company”), and
American Stock Transfer and Trust Company (the “Rights Agent”). 
 
On April 29, 1998, the Board of Directors of the Company authorized and declared a dividend of one preferred share purchase right (a “Right”) for each Common Share (as hereinafter
defined) of the Company outstanding at the Close of Business (as hereinafter defined) on May 11, 1998 (the “Record Date”), each Right representing, as of the Record Date, the right to purchase one one-thousandth of a Preferred Share
(as hereinafter defined), upon the terms and subject to the conditions herein set forth, and has further authorized and directed the issuance of one Right with respect to each Common Share that shall become outstanding (i) between the Record Date
and the earliest of the Distribution Date, the Redemption Date and the Final Expiration Date (as such terms are hereinafter defined) or (ii) following the Distribution Date and prior to the Redemption Date or Final Expiration Date, pursuant to the
exercise of stock options or under any employee plan or arrangement or upon the exercise, conversion or exchange of other securities of the Company, which options or securities were outstanding prior to the Distribution Date. On May 1, 1998, the
Company and the Rights Agent entered into a Rights Agreement setting forth terms and conditions governing the Rights (the “Rights Agreement”), which Rights Agreement by its terms permitted the amendment of such Rights Agreement.

 
On September 16, 1998, the Board of Directors of
the Company authorized the amendment and restatement of the Rights Agreement. 
 
In September of 1999 the Company declared a dividend of two Common Shares on each Common Share that was outstanding on the record date of September 20, 1999, as a result of which, in accordance with
the adjustment provisions of Section 11 of the Rights Agreement, each Right was adjusted to, and became, a right to purchase one-third of one one-thousandth (or 1/3000) of a Preferred Share at a Purchase Price of $83.33. 
 
On October 15, 1999, the Board of Directors of the Company
authorized a second amendment and restatement of the Rights Agreement. 
 
On January 30, 2003, the Board of Directors of the Company authorized this third amendment and restatement of the Rights Agreement, which is this Agreement, and the amendments contained herein include, among other things, an
amendment to increase the Purchase Price of each Right from $83.33 to the amount set forth in Section 7(b) of this Agreement. This Agreement contains the entire text of the Rights Agreement, as such has been amended and restated through January 30,
2003. 
 

Accordingly, in consideration of the premises and the mutual agreements herein set forth,
the parties hereto hereby agree as follows: 
 
Section 1. Certain Definitions. For purposes of this Agreement, the following terms have the meanings indicated: 
 
(a)    “Acquiring Person” shall mean any Person who or which, together with all Affiliates and
Associates of such Person, shall be the Beneficial Owner of 20% (the “Designated Percentage”) or more of the Common Shares of the Company then outstanding, but shall not include (i) the Company, (ii) any Subsidiary of the Company, (iii)
any employee benefit plan of the Company or any Subsidiary of the Company or (iv) any entity holding Common Shares for or pursuant to the terms of any such plan. Notwithstanding the foregoing, 
 
(A)    No Person shall become an
Acquiring Person if the Board of Directors of the Company determines in good faith that a Person who would otherwise be an Acquiring Person has become such inadvertently, and such Person as promptly as practicable takes such actions as may be
necessary so that such Person would no longer be considered an Acquiring Person. 
 
(B)    No Person shall become an “Acquiring Person” as the result of an acquisition of Common Shares by the Company which, by reducing the number of shares outstanding,
increases the proportionate number of shares beneficially owned by such Person and such Person’s Affiliates and Associates to the Designated Percentage or more of the Common Shares of the Company then outstanding; provided,
however, that if a Person, together with such Person’s Affiliates and Associates, shall become the Beneficial Owner of the Designated Percentage or more of the Common Shares of the Company then outstanding by reason of share purchases by
the Company and such Person, together with its Affiliates and Associates, shall, after public announcement of such share purchases by the Company, become the Beneficial Owner of any additional Common Shares of the Company, then such Person shall be
deemed to be an “Acquiring Person.” 
 
(b)    “Affiliate” and “Associate” shall have the following meanings: 
 
(i)    An “Affiliate” of, or a Person “affiliated” with, a specified Person, is a
Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Person specified. For this purpose, “control” (including the terms
“controlling,” “controlled by” and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise; 
 
(ii)    The term “Associate” used to indicate a relationship with any Person shall mean (A) any corporation or organization (other than the Company or a
majority-owned subsidiary of the Company) of which such Person is an officer or partner or is, directly or indirectly, the Beneficial Owner of 10% or more of any class of equity securities, (B) any trust or other estate in which such Person has a
substantial beneficial interest or as to which such Person 
 

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serves as trustee or in a similar fiduciary capacity, and (C) any relative or spouse of such Person, or any relative of such spouse, who has
the same home as such Person or who is a director or officer of the Company or any of its parents or Subsidiaries. 
 
(c)    A Person shall be deemed the “Beneficial Owner” of and shall be deemed to
“beneficially own” any securities: 
 
(i)    which such Person owns, directly or indirectly; 
 
(ii)    which such Person has (A) the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or
understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities), written or otherwise, or upon the exercise of conversion rights, exchange rights,
rights (other than the Rights), warrants or options, or otherwise; provided, however, that a Person shall not be deemed to be the Beneficial Owner of, or to beneficially own, securities tendered pursuant to a tender or exchange offer
made by or on behalf of such Person until such tendered securities are accepted for purchase or exchange; or (B) the right to vote pursuant to any agreement, arrangement or understanding; provided, however, that a Person shall not be
deemed the Beneficial Owner of, or to beneficially own, any security if the agreement, arrangement or understanding to vote such security (1) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or
consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations promulgated under the Exchange Act and (2) is not also then reportable on Schedule 13D under the Exchange Act (or any comparable or successor
report); or 
 
(iii)    which
are beneficially owned, directly or indirectly, by any other Person with which such Person has any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a
bona fide public offering of securities), written or otherwise, for the purpose of acquiring, holding, voting (except to the extent contemplated by the proviso to Section 1(c)(ii)(B)) or disposing of any securities of the Company. 
 
Notwithstanding anything in this definition of Beneficial
Ownership to the contrary, (A) the phrase “then outstanding,” when used with reference to a Person’s Beneficial Ownership of securities of the Company, shall mean the number of such securities then issued and outstanding
together with the number of such securities not then actually issued and outstanding which such Person would be deemed to own beneficially hereunder, and (B) a Person who is a director or officer of the Company or who is an Affiliate or Associate of
a director or officer of the Company (each, an “Exempted Person”) shall not be deemed to “beneficially own” Common Shares held by another Exempted Person solely by reason of any agreement, arrangement or understanding,
written or otherwise, entered into in opposition to a transaction that, at the time such agreement, arrangement or understanding was entered into, has not been approved or recommended by the Board of Directors to the stockholders of the Company.

 

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(d)    “Business Day” shall mean any day other than a
Saturday, a Sunday, or a day on which banking institutions in the State of California are authorized or obligated by law or executive order to close. 
 
(e)    “Close of Business” on any given date shall mean 5:00 p.m., Pacific Time, on such date;
provided, however, that if such date is not a Business Day it shall mean 5:00 p.m., Pacific Time, on the next succeeding Business Day. 
 
(f)    “Common Shares” when used with reference to the Company shall mean the shares of common stock,
par value $0.01 per share, of the Company. “Common Shares” when used with reference to any Person other than the Company shall mean the capital stock (or equity interest) with the greatest voting power of such other Person or, if such
other Person is a Subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned Person. 
 
(g)    “Designated Percentage” shall have the meaning set forth in Section 1(a) hereof. 
 
(h)    “Distribution
Date” shall have the meaning set forth in Section 3 hereof. 
 
(i)    “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 
(j)    “Final Expiration Date” shall have the meaning set forth in Section 7(a) hereof. 
 
(k)    “Person” shall
mean any individual, firm, corporation, partnership, limited partnership, business trust, unincorporated association or other entity, and shall include any successor (by merger or otherwise) of such entity. 
 
(l)    “Purchase Price”
shall have the meaning set forth in Section 7(b) hereof. 
 
(m)    “Preferred Shares” shall mean shares of Series B Junior Participating Preferred Stock, par value $0.01 per share, of the Company having the rights and preferences set forth in the Form of
Certificate of Designations of Series B Junior Participating Preferred Stock attached to this Agreement as Exhibit A, as amended by the Certificate of Increase of Series B Junior Participating Preferred Stock attached to this Agreement as
Exhibit A-1. 
 
(n)    “Redemption Date” shall have the meaning set forth in Section 7(a) hereof. 
 
(o)    “Shares Acquisition Date” shall mean the earlier of the date of (i) the public announcement by
the Company or an Acquiring Person that an Acquiring Person has become such or (ii) the public disclosure of facts by the Company or an Acquiring Person indicating that an Acquiring Person has become such. 
 

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(p)    “Subsidiary” of any Person shall mean any
Person of which a majority of the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by such Person. 
 
(r)    A “Successor” shall mean the estate or legal representative of a deceased individual, the
beneficiary of a deceased individual’s estate, a trust created by a deceased individual as grantor, or the beneficiary of a trust created by a deceased individual as grantor. 
 
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 Shares) 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.    Issue of Right Certificates. 
 
(a)    Until the earlier of (i) the tenth day after the Shares Acquisition Date or (ii)
the tenth Business Day (or such later date as may be determined by action of the Board of Directors of the Company prior to such time as any Person becomes an Acquiring Person) after the first public announcement of the intention of 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 entity holding Common Shares for or pursuant to the terms of any such plan) to commence a tender or exchange
offer the consummation of which would result in any such Person becoming an Acquiring Person (including any such date which is after the date of this Agreement and prior to the issuance of the Rights; the earlier of such dates being herein referred
to as the “Distribution Date”); (x) the Rights will be evidenced (subject to the provisions of Section 3(b) hereof) by the certificates for Common Shares registered in the names of the holders thereof (which certificates shall also
be deemed to be Right Certificates) and not by separate Right Certificates, and (y) the right to receive Right Certificates will be transferable only in connection with the transfer of Common Shares. As soon as practicable after the Distribution
Date, the Company will prepare and execute, the Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if requested, send) by first-class, insured, postage-prepaid mail, to each record holder of
Common Shares as of the Close of Business on the Distribution Date, at the address of such holder shown on the records of the Company, a Right Certificate, in substantially the form of Exhibit B hereto (a “Right
Certificate”), evidencing one Right for each Common Share so held. As of the Distribution Date, the Rights will be evidenced solely by such Right Certificates. 
 
(b)    On the Record Date, or as soon as practicable thereafter, the Company will send a
copy of a Summary of Rights to Purchase Preferred Shares, in substantially the form of Exhibit C hereto, prior to the amendment hereof (the “Summary of Rights”), by first-class, postage-prepaid mail, to each record holder of
Common Shares as of the Close of Business on the Record Date, at the address of such holder shown on the records of the Company. With respect to certificates for Common Shares outstanding as of the Record Date, until the 
 

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Distribution Date, the Rights will be evidenced by such certificates registered in the names of the holders thereof together with a copy of
the Summary of Rights attached thereto. Until the Distribution Date (or the earlier of the Redemption Date or the Final Expiration Date), the surrender for transfer of any certificate for Common Shares outstanding on the Record Date, with or without
a copy of the Summary of Rights attached thereto, shall also constitute the transfer of the Rights associated with the Common Shares represented thereby. 
 
(c)    Certificates for Common Shares which become outstanding (including, without limitation, reacquired Common
Shares referred to in the last sentence of this paragraph (c)) after the Record Date but prior to the earliest of the Distribution Date, the Redemption Date or the Final Expiration Date shall have impressed on, printed on, written on or otherwise
affixed to them the following legend: 
 
This
certificate also evidences and entitles the holder hereof to certain rights (the “Rights”) as set forth in a Rights Agreement between Intuit Inc. and American Stock Transfer and Trust Company, dated as of May 1, 1998, as such may
subsequently be amended (the “Rights Agreement”), the terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal executive offices of Intuit Inc. 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. Intuit Inc. will mail to the holder of this certificate a copy of the Rights Agreement without charge after receipt of
a written request therefor. As described in Section 11(a)(ii) of the Rights Agreement, Rights beneficially owned by any Person who becomes an Acquiring Person (as defined in the Rights Agreement) and certain other Persons shall become null and void.

 
With respect to such certificates containing the foregoing
legend, until the Distribution Date, the Rights associated with the Common Shares represented by such certificates shall be evidenced by such certificates alone, and the surrender for transfer of any such certificate shall also constitute the
transfer of the Rights associated with the Common Shares represented thereby. In the event that the Company purchases or acquires any Common Shares after the Record Date but prior to the Distribution Date, any Rights associated with such Common
Shares shall be deemed cancelled and retired so that the Company shall not be entitled to exercise any Rights associated with the Common Shares which are no longer outstanding. 
 
Section 4.    Form of Right Certificates.    The Right
Certificates (and the forms of election to purchase Preferred Shares and of assignment to be printed on the reverse thereof) shall be substantially the same as 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 other provisions of this Agreement, the Right Certificates shall entitle the holders
thereof to purchase such number of one one-thousandths of a Preferred Share as shall be set forth therein at the Purchase Price, but the number of such one 
 

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one-thousandths of a Preferred Share and the Purchase Price shall be subject to adjustment as provided herein. 
 
Section 5.    Countersignature and
Registration.    The Right Certificates shall be executed on behalf of the Company by its Chairman of the Board, its Chief Executive Officer, its President, any of its Vice Presidents, or its Treasurer, either manually or by
facsimile signature, shall have affixed thereto the Company’s seal or a facsimile thereof, and shall be attested by the Secretary or any Assistant Secretary of the Company, either manually or by facsimile signature. The Right Certificates shall
be manually countersigned by the Rights Agent (unless applicable exchange rules and law permit facsimile signature, in which case the Rights Agent signature may be by facsimile) and shall not be valid for any purpose unless countersigned. In case
any officer of the Company who shall have signed any of the Right Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the Company, such Right Certificates, nevertheless,
may be countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as though the person who signed such Right Certificates had not ceased to be such officer of the Company; and any Right Certificate may
be signed on behalf of the Company by any person who, at the actual date of the execution of such Right Certificate, shall be a proper officer of the Company to sign such Right Certificate, although at the date of the execution of this Rights
Agreement any such person was not such an officer. 
 
Following the Distribution Date, the Rights Agent will keep or cause to be kept, at its principal office, books for registration and transfer of the Right Certificates issued hereunder. Such books shall show the names and addresses
of the respective holders of the Right Certificates, the number of Rights evidenced on its face by each of the Right Certificates and the date of each of the Right Certificates. 
 
Section 6.    Transfer, Split Up, Combination and Exchange of Right Certificates;
Mutilated, Destroyed, Lost or Stolen Right Certificates.    Subject to the provisions of 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
earlier of the Redemption Date or the Final Expiration Date, any Right Certificate or Right Certificates (other than Right Certificates representing Rights that have become void pursuant to Section 11(a)(ii) hereof or that have been exchanged
pursuant to Section 24 hereof) may be transferred, split up, combined or exchanged for another Right Certificate or Right Certificates, entitling the registered holder to purchase a like number of one one-thousandths of a Preferred Share as the
Right Certificate or Right Certificates surrendered then entitled such holder to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Right Certificate or Right Certificates shall make such request in writing
delivered to the Rights Agent, and shall surrender the Right Certificate or Right Certificates to be transferred, split up, combined or exchanged at the principal office of the Rights Agent. Thereupon the Company shall execute and the Rights Agent
shall countersign and deliver to the person entitled thereto a Right Certificate or Right Certificates, as the case may be, as so requested. The Company may require payment of a sum sufficient for any tax or governmental charge that may be imposed
in connection with any transfer, split up, combination or exchange of Right Certificates. 
 

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Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to
them of the loss, theft, destruction or mutilation of a Right Certificate, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, and, at the Company’s request, reimbursement to the Company and the
Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Right Certificate if mutilated, the Company will make and deliver a new Right Certificate of like tenor to the Rights Agent
for delivery to the registered holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated. 
 
Section 7.    Exercise of Rights; Purchase Price; Expiration Date of Rights. 
 
(a)    The registered holder of any Right
Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein) in whole or in part at any time after the Distribution Date upon surrender of the Right Certificate, with the form of election to purchase on the reverse
side thereof duly executed, to the Rights Agent at the principal office of the Rights Agent, together with payment of the Purchase Price for each one one-thousandth of a Preferred Share as to which the Rights are exercised, at or prior to the
earliest of (i) the Close of Business on May 1, 2008 (the “Final Expiration Date”), (ii) the time at which the Rights are redeemed as provided in Section 23 hereof (the “Redemption Date”), or (iii) the time at which
such Rights are exchanged as provided in Section 24 hereof. 
 
(b)    The purchase price for each one-third of one one-thousandth (i.e., 1/3000) of a Preferred Share pursuant to the exercise of a Right (the “Purchase Price”) shall initially be $300.00
effective as of January 30, 2003, and such Purchase Price shall be subject to adjustment from time to time as provided in Sections 11 and 13 hereof and shall be payable in lawful money of the United States of America in accordance with paragraph (c)
below. 
 
(c)    Upon receipt
of a Right Certificate representing exercisable Rights, with the form of election to purchase and certificate duly executed, accompanied by payment of the Purchase Price for the shares to be purchased and an amount equal to any applicable transfer
tax required to be paid by the holder of such Right Certificate in accordance with Section 9 hereof by certified check, cashier’s check or money order payable to the order of the Company, the Rights Agent shall thereupon promptly (i) (A)
requisition from any transfer agent of the Preferred Shares certificates for the number of one one-thousandths of a Preferred Share to be purchased and the Company hereby irrevocably authorizes its transfer agent to comply with all such requests, or
(B) requisition from any depositary agent for the Preferred Shares depositary receipts representing such number of one one-thousandths of a Preferred Share as are to be purchased (in which case certificates for the Preferred Shares represented by
such receipts shall be deposited by the transfer agent with the depositary agent) and the Company hereby directs the depositary agent to comply with such request, (ii) when appropriate, requisition from the Company the amount of cash to be paid in
lieu of issuance of fractional Preferred 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 Right
Certificate, registered in such name or names as 
 

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may be designated by such holder and (iv) when appropriate, after receipt, deliver such cash to or upon the order of the registered holder of
such Right Certificate. 
 
(d)    In case the registered holder of any Right Certificate shall exercise less than all the Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent to the Rights remaining unexercised
shall be issued by the Rights Agent to the registered holder of such Right Certificate or to such holder’s duly authorized assigns, subject to the provisions of Section 14 hereof. 
 
(e)    The Company covenants and agrees that it will cause to be reserved and kept
available, out of its authorized and unissued Preferred Shares or any Preferred Shares held in its treasury, the number of Preferred Shares that will be sufficient to permit the exercise in full of all outstanding Rights in accordance with this
Section 7. 
 
(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 following the form of election to purchase set forth on the reverse side of the Right Certificate surrendered for
such exercise and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company shall reasonably request. 
 
Section 8.    Cancellation and
Destruction of Right Certificates.    All Right Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to
the Rights Agent for cancellation or in cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by it, and no Right Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Rights
Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Right Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The
Rights Agent shall deliver all cancelled Right Certificates to the Company, or shall, at the written request of the Company, destroy such cancelled Right Certificates, and in such case shall deliver a certificate of destruction thereof to the
Company. 
 
Section
9.    Status and Availability of Preferred Shares.    The Company covenants and agrees that it will take all such action as may be necessary to ensure that all Preferred Shares delivered upon exercise
of Rights shall, at the time of delivery of the certificates for such Preferred Shares (subject to payment of the Purchase Price), be duly and validly authorized and issued and fully paid and non-assessable shares. 
 
The Company further covenants and agrees that it will pay when
due and payable any and all federal and state transfer taxes and charges which may be payable in respect of the issuance or delivery of the Right Certificates or of any Preferred Shares upon the exercise of Rights. The Company shall not, however, be
required to pay any transfer tax which may be payable in respect 
 

9 

of any transfer or delivery of Right Certificates to a person other than, or the issuance or delivery of certificates or depositary receipts
for the Preferred Shares in a name other than that of, the registered holder of the Right Certificate evidencing Rights surrendered for exercise or to issue or to deliver any certificates or depositary receipts for Preferred Shares upon the exercise
of any Rights until any such tax shall have been paid (any such tax being payable by the holder of such Right Certificate at the time of surrender) or until it has been established to the Company’s reasonable satisfaction that no such tax is
due. 
 
Section
10.    Preferred Shares Record Date.    Each person in whose name any certificate for Preferred Shares is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of
record of the Preferred Shares represented thereby on, and such certificate shall be dated, the date upon which the Right Certificate evidencing such Rights was duly surrendered and payment of the Purchase Price (and any applicable transfer taxes)
was made. Prior to the exercise of the Rights evidenced thereby, the holder of a Right Certificate shall not be entitled to any rights of a holder of Preferred 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 of Shares or Number of Rights.    The Purchase Price, the number of Preferred 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 January 30, 2003 (A) declare a dividend on the Preferred Shares payable in Preferred Shares, (B) subdivide the outstanding
Preferred Shares, (C) combine the outstanding Preferred Shares into a smaller number of Preferred Shares or (D) issue any shares of its capital stock in a reclassification of the Preferred Shares (including any such reclassification in connection
with a consolidation or merger in which the Company is the continuing or surviving corporation), except as otherwise provided in this Section 11(a), the Purchase Price in effect at the time of the record date for such dividend or of the effective
date of such subdivision, combination or reclassification, and the number and kind of shares of capital stock issuable on such date, shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled to
receive the aggregate number and kind of shares of capital stock which, if such Right had been exercised immediately prior to such date, such holder would have owned upon such exercise and been entitled to receive by virtue of such dividend,
subdivision, combination or reclassification; provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company
issuable upon exercise of one Right. 
 
(ii)    Subject to the last paragraph of this subparagraph (ii) and to Section 24 of this Agreement, in the event that any Person shall become an Acquiring Person, unless the event causing the Designated
Percentage threshold to be crossed and the Person to thereby become an Acquiring Person is a transaction set forth in Section 13 hereof, each holder of a Right shall thereafter have a right to receive, upon exercise thereof at a price equal to the

 

10 

then current Purchase Price multiplied by the number of one one-thousandths of a Preferred Share for which a Right is then exercisable, in
accordance with the terms of this Agreement and in lieu of Preferred Shares, such number of Common Shares of the Company as shall equal the result obtained by (x) multiplying the then current Purchase Price by the number of one one-thousandths of a
Preferred Share for which a Right is then exercisable and dividing that product by (y) 50% of the then current per share market price of the Company’s Common Shares (determined pursuant to Section 11(d) hereof) on the date such Person became an
Acquiring Person. 
 
From and after the occurrence
of any Person becoming an Acquiring Person, any Rights that are or were acquired or beneficially owned by such Acquiring Person (or any Associate or Affiliate of such Acquiring Person) shall be void and any holder of such Rights shall thereafter
have no right to exercise such Rights under any provision of this Agreement. No Right Certificate shall be issued pursuant to Section 3 that represents Rights beneficially owned by an Acquiring Person whose Rights would be void pursuant to the
preceding sentence or any Associate or Affiliate thereof; no Right Certificate shall be issued at any time upon the transfer of any Rights to an Acquiring Person whose Rights would be void pursuant to the preceding sentence or any Associate or
Affiliate thereof or to any nominee of such Acquiring Person, Associate or Affiliate; and any Right Certificate delivered to the Rights Agent for transfer to an Acquiring Person whose Rights would be void pursuant to the preceding sentence or any
Associate or Affiliate thereof shall be cancelled. This paragraph shall apply not only to an initial Acquiring Person, and its Affiliates and Associates, but also to subsequent Acquiring Persons, and their Affiliates and Associates. 
 
(iii)    In the event that the number of
Common Shares which are authorized by the Company’s certificate of incorporation and not outstanding or subscribed for, or reserved or otherwise committed for issuance for purposes other than upon exercise of the Rights, is not sufficient to
permit the holder of each Right to purchase the number of Common Shares to which such holder would be entitled upon the exercise in full of the Rights in accordance with the foregoing subparagraph (ii) of paragraph (a) of this Section 11, the
Company shall: (A) determine the excess of (1) the value of the Common Shares issuable upon the exercise of a Right (calculated as provided in the last sentence of this subparagraph (iii)) pursuant to Section 11(a)(ii) hereof (the “Current
Value”) over (2) the Purchase Price (such excess, the “Spread”), and (B) with respect to each Right, make adequate provision to substitute for such Common Shares, upon payment of the applicable Purchase Price, (1) cash, (2)
a reduction in the Purchase Price, (3) Common Shares or other equity securities of the Company (including, without limitation, shares, or units of shares, of preferred stock which the Board of Directors of the Company has determined to have the same
value as shares of common stock (such equity securities, “common stock equivalents”)), (4) debt securities of the Company, (5) other assets, or (6) any combination of the foregoing, having an aggregate value equal to the Current
Value, where such aggregate value has been determined by the Board of Directors of the Company in good faith; provided, however, 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 occurrence of an event triggering the rights to purchase Common Shares described in Section 11(a)(ii) and (y) the date on which the Company’s right of redemption pursuant to Section 23(a)

 

11 

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 without requiring payment of the Purchase Price, shares of common stock (to the extent available) and then, if necessary, cash, which shares and cash have an aggregate value equal
to the Spread. If the Board of Directors of the Company shall determine in good faith that it is likely that sufficient additional shares of common stock could be authorized for issuance upon exercise in full of the Rights, the 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 stockholder approval for the authorization of such additional shares
(such period, as it may be extended, the “Substitution Period”). To the extent that the Company determines that some action need be taken pursuant to the first and/or second sentences of this Section 11(a)(iii), the Company (x)
shall provide, subject to Section 7(f) hereof, that such action shall apply uniformly to all outstanding Rights, and (y) may suspend the exercisability of the Rights until the expiration of the Substitution Period in order to seek any authorization
of additional shares and/or to decide the appropriate form of distribution to be made pursuant to such first sentence and to determine the value thereof. In the event of any such suspension, the Company shall make a public announcement, and shall
deliver to the Rights Agent a statement, stating that the exercisability of the Rights has been temporarily suspended. At such time as the suspension is no longer in effect, the Company shall make another public announcement, and deliver to the
Rights Agent a statement, so stating. For purposes of this Section 11(a)(iii), the value of the Common Shares shall be the current per share market price (as determined pursuant to Section 11(d)(i) hereof) of the Common Shares on the Section
11(a)(ii) Trigger Date and the value of any “common stock equivalent” shall be deemed to have the same value as the Common Shares 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 Shares entitling them to subscribe for or purchase Preferred Shares (or shares having the same rights, privileges and preferences as the Preferred Shares (“equivalent preferred shares”)) or securities convertible into
Preferred Shares or equivalent preferred shares at a price per Preferred Share or equivalent preferred share (or having a conversion price per share, if a security convertible into Preferred Shares or equivalent preferred shares) less than the then
current per share market price of the Preferred Shares (as defined in Section 11(d)) 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 Preferred Shares outstanding on such record date plus the number of Preferred Shares which the aggregate offering price of the total number of Preferred Shares and/or
equivalent preferred shares so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be offered) would purchase at such current per share market price and the denominator of which shall be the number of
Preferred Shares outstanding on such record date plus the number of additional Preferred Shares and/or equivalent preferred shares to be offered for subscription or purchase (or into which the convertible securities so to be offered are initially
convertible); provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of one Right.
In case such subscription price may be paid in a consideration part 
 

12 

or all of which shall be in a form other than cash, the value of such consideration shall be as determined in good faith by the Board of
Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent. Preferred Shares owned by or held for the account of the Company shall not be deemed outstanding for the purpose of any such computation.
Such adjustment shall be made successively whenever such a record date is fixed; and in the event that such rights, options or warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price which would then be in effect if
such record date had not been fixed. 
 
(c)    In case the Company shall fix a record date for the making of a distribution to all holders of the Preferred Shares (including any such distribution made in connection with a consolidation or merger in
which the Company is the continuing or surviving corporation) of evidences of indebtedness or assets (other than a regular quarterly cash dividend or a dividend payable in Preferred Shares) or subscription rights or warrants (excluding those
referred to in Section 11(b) hereof), the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the
then current per share market price of the Preferred Shares on such record date, less the fair market value (as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the
Rights Agent) of the portion of the assets or evidences of indebtedness so to be distributed or of such subscription rights or warrants applicable to one Preferred Share and the denominator of which shall be such current per share market price of
the Preferred Shares; provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company to be issued upon exercise
of one Right. Such adjustments shall be made successively whenever such a record date is fixed; and in the event that such distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase Price which would then be in effect
if such record date had not been fixed. 
 
(d)    (i)    For the purpose of any computation hereunder, the “current per share market price” of any security (a “Security” for the purpose of this Section
11(d)(i)) on any date shall be deemed to be the average of the daily closing prices per share of such Security for the 30 consecutive Trading Days (as such term is hereinafter defined) immediately prior to such date; provided, however,
that in the event that the current per share market price of the Security is determined during a period following the announcement by the issuer of such Security of (A) a dividend or distribution on such Security payable in shares of such Security
or securities convertible into such shares, or (B) any subdivision, combination or reclassification of such Security and prior to the expiration of 30 Trading Days after the ex-dividend date for such dividend or distribution, or the record date for
such subdivision, combination or reclassification, then, and in each such case, the current per share market price shall be appropriately adjusted to reflect the current market price per share equivalent of such Security. The closing price for each
day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported 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 Security is not listed or admitted to trading on 
 

13 

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

 
(ii)    For the purpose of
any computation hereunder, the “current per share market price” of the Preferred Shares shall be determined in accordance with the method set forth in Section 11(d)(i). If the Preferred Shares are not publicly traded, the “current per
share market price” of the Preferred Shares shall be conclusively deemed to be the current per share market price of the Common Shares as determined pursuant to Section 11(d)(i) (appropriately adjusted to reflect any stock split, stock dividend
or similar transaction occurring after the date hereof), multiplied by one thousand. If neither the Common Shares nor the Preferred Shares are publicly held or so listed or traded, “current per share market price” shall mean the fair value
per share as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent. 
 
(e)    No adjustment in the Purchase Price shall be required unless such adjustment would
require an increase or decrease of at least 1% in the Purchase Price; provided, however, that any adjustments which by reason of this Section 11(e) are not required to be made shall be carried forward and taken into account in any
subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest one ten-millionth of a Preferred Share or one ten-thousandth of any other share or security as the case may be. Notwithstanding the
first sentence of this Section 11(e), any adjustment required by this Section 11 shall be made no later than three years from the date of the transaction which requires such adjustment. 
 
(f)    If as a result of an adjustment made pursuant to Section 11(a) hereof, the holder
of any Right thereafter exercised shall become entitled to receive any shares of capital stock of the Company other than Preferred Shares, the number of such other shares so receivable upon exercise of any Right shall thereafter 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 Shares contained in Section 11(a) through (c), inclusive, and the provisions of Sections 7, 9, 10 and 13 with
respect to the Preferred Shares 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

 

14 

Purchase Price, the number of one one-thousandths of a Preferred Share 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 Preferred Share (calculated to the nearest one ten-millionth of a
Preferred Share) 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 substitution for any adjustment in the number of one one-thousandths of a Preferred Share purchasable upon the exercise of a Right. Each of the Rights outstanding after such adjustment of the number of Rights shall be exercisable for the
number of one one-thousandths of a Preferred Share for which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become that number of Rights (calculated to
the nearest one ten-thousandth) obtained by dividing the Purchase Price in effect immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment of the Purchase Price. The Company shall make a
public announcement of its election to adjust the number of Rights, indicating the record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. This record date may be the date on which the Purchase Price is
adjusted or any day thereafter, but, if the Right Certificates have been distributed, shall be at least 10 days later than the date of the public announcement. If Right Certificates have been distributed, upon each adjustment of the number of Rights
pursuant to this Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to holders of record of Right Certificates on such record date Right Certificates evidencing, subject to Section 14 hereof, the additional Rights
to which such holders shall be entitled as a result of such adjustment, or, at the option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Right Certificates held by such holders prior
to the date of adjustment, and upon surrender thereof, if required by the Company, new Right Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment. Right Certificates to be so distributed shall be
issued, executed and countersigned in the manner provided for herein and shall be registered in the names of the holders of record of Right Certificates on the record date specified in the public announcement. 
 
(j)    Irrespective of any adjustment or
change in the Purchase Price or the number of one one-thousandths of a Preferred Share issuable upon the exercise of the Rights, the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price and the number of
one one-thousandths of a Preferred Share which were expressed in the initial Right Certificates issued hereunder. 
 

15 

(k)    Before taking any action that would cause an adjustment
reducing the Purchase Price below one one-thousandth of the then par value of the Preferred Shares 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 non-assessable Preferred Shares at such adjusted Purchase Price. 
 
(l)    In any case in which this Section 11 shall require that an adjustment in the Purchase Price be made effective
as of a record date for a specified event, the Company may elect to defer until the occurrence of such event the issuing to the holder of any Right exercised after such record date of the Preferred Shares and other capital stock or securities of the
Company, if any, issuable upon such exercise over and above the Preferred Shares 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 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 it in its sole
discretion shall determine to be advisable in order that any (i) consolidation or subdivision of the Preferred Shares, (ii) issuance wholly for cash of Preferred Shares or securities which by their terms are convertible into or exchangeable for
Preferred Shares, (iii) dividends on Preferred Shares payable in Preferred Shares or (iv) issuance of any rights, options or warrants referred to hereinabove in Section 11(b), hereafter made by the Company to holders of its Preferred Shares shall
not be taxable to such stockholders. 
 
(n)    In the event that at any time after January 30, 2003 and prior to the Distribution Date, the Company shall (i) declare or pay any dividend on the Common Shares payable in Common Shares or (ii) effect a
subdivision, combination or consolidation of the Common Shares (by reclassification or otherwise other than by payment of dividends in Common Shares) into a greater or lesser number of Common Shares, then in any such case (i) the number of one
one-thousandths of a Preferred Share purchasable after such event upon proper exercise of each Right shall be determined by multiplying the number of one one-thousandths of a Preferred Share so purchasable immediately prior to such event by a
fraction, the numerator of which is the number of Common Shares outstanding immediately before such event and the denominator of which is the number of Common Shares outstanding immediately after such event, and (ii) each Common Share outstanding
immediately after such event shall have issued with respect to it that number of Rights which each Common Share outstanding immediately prior to such event had issued with respect to it. The adjustments provided for in this Section 11(n) shall be
made successively whenever such a dividend is declared or paid or such a subdivision, combination or consolidation is effected. 
 
(o)    The Company covenants and agrees that, after the Distribution Date, it will not, except as permitted by
Sections 23, 24 and 27, take (or permit any Subsidiary to take) any action if the purpose of such action is to, or if at the time such action is taken it is reasonably 
 

16 

foreseeable that such action will, diminish substantially or eliminate the benefits intended to be afforded by the Rights. 
 
Section 12.    Certificate of Adjusted
Purchase Price or Number of Shares.    Whenever an adjustment is made as provided in Sections 11 and 13 hereof, the Company shall promptly (a) prepare a certificate setting forth such adjustment, and a brief statement of the
facts accounting for such adjustment, (b) file with the Rights Agent and with each transfer agent for the Common Shares or the Preferred Shares a copy of such certificate and (c) if such adjustment is made after the Distribution Date, mail a brief
summary thereof to each holder of a Right Certificate in accordance with Section 25 hereof. 
 
Section 13.    Consolidation, Merger or Sale or Transfer of Assets or Earning Power.    In the event that any Person shall become an Acquiring Person,
and, directly or indirectly, (a) the Company shall consolidate with, or merge with and into, an Acquiring Person, or an Affiliate or Associate of an Acquiring Person, (b) an Acquiring Person or an Affiliate or Associate of an Acquiring Person, shall
consolidate with the Company, or merge with and into the Company and the Company shall be the continuing or surviving corporation of such merger and, in connection with such merger, all or part of the Common Shares shall be changed into or exchanged
for stock or other securities of any other Person (or the Company) or cash or any other property, or (c) the Company shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer), in one or more transactions,
assets or earning power aggregating 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to an Acquiring Person, or an Affiliate or Associate of an Acquiring Person, then, and in each such case, proper
provision shall be made so that (i) each holder of a Right (except as otherwise provided herein) shall thereafter have the right to receive, upon the exercise thereof at a price equal to the then current Purchase Price multiplied by the number of
one one-thousandths of a Preferred Share for which a Right is then exercisable, in accordance with the terms of this Agreement and in lieu of Preferred Shares, such number of Common Shares of the Person in the transaction (including the Company as
successor thereto or as the surviving corporation) who is issuing the consideration with the greatest fair market value to the Company and its stockholders in connection with such transaction (the “Principal Issuer”) as shall equal the
result obtained by (A) multiplying the then current Purchase Price by the number of one one-thousandths of a Preferred Share for which a Right is then exercisable and dividing that product by (B) 50% of the then current per share market price of the
Common Shares of the Principal Issuer (determined pursuant to Section 11(d) hereof) on the date of consummation of such consolidation, merger, sale or transfer; (ii) the Principal Issuer shall thereafter be liable for, and shall assume, by virtue of
such consolidation, merger, sale or transfer, all the obligations and duties of the Company pursuant to this Agreement; (iii) the term “Company” shall thereafter be deemed to refer to the Principal Issuer; and (iv) the Principal Issuer
shall take such steps (including, but not limited to, the reservation of a sufficient number of its Common Shares in accordance with Section 9 hereof) in connection with such consummation as may be necessary to assure that the provisions hereof
shall thereafter be applicable, as nearly as reasonably may be, in relation to the Common Shares thereafter deliverable upon the exercise of the Rights. The Company covenants and agrees that it shall not consummate any such consolidation, merger,
sale or transfer unless prior thereto the Company and the Principal Issuer shall have executed and delivered to the Rights 
 

17 

Agent a supplemental agreement so providing. The Company shall not enter into any transaction of the kind referred to in this Section 13 if
at the time of such transaction there are any rights, warrants, instruments or securities outstanding or any agreements or arrangements which, as a result of the consummation of such transaction, would eliminate or substantially diminish the
benefits intended to be afforded by the Rights. The provisions of this Section 13 shall similarly apply to successive mergers or consolidations or sales or other transfers. 
 
Section 14.    Fractional Rights and Fractional Shares. 
 
(a)    The Company shall not be required
to issue fractions of Rights or to distribute Right Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall be paid to the registered holders of the Right Certificates with regard to which such fractional Rights
would otherwise be issuable, an amount in cash equal to the same fraction of the current market value of a whole Right. For the purposes of this Section 14(a), the current market value of a whole Right shall be the closing price of the Rights for
the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable. The closing price for any day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average
of the closing bid and asked prices, regular way, in either case as reported 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 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 of Directors of the Company. If on any such date no such market maker is making a market in the Rights, the fair value of the Rights on such date as determined in good faith by the Board of Directors of the Company shall be used.

 
(b)    The Company shall not
be required to issue fractions of Preferred Shares (other than fractions which are integral multiples of one one-thousandth of a Preferred Share or such other fraction determined pursuant to Section 11(n) hereof) upon exercise of the Rights or to
distribute certificates which evidence fractional Preferred Shares (other than fractions which are integral multiples of one one-thousandth of a Preferred Share or such other fraction determined pursuant to Section 11(n) hereof). Fractions of
Preferred Shares in integral multiples of one one-thousandth of a Preferred Share may, at the election of the Company, be evidenced by depositary receipts, pursuant to an appropriate agreement between the Company and a depositary selected by it;
provided, that such agreement shall provide that the holders of such depositary receipts shall have all the rights, privileges and preferences to which they are entitled as beneficial owners of the Preferred Shares represented by such
depositary receipts. In lieu of fractional Preferred Shares that are not integral multiples of one one-thousandth of a Preferred Share, the Company shall pay to the registered holders of Right Certificates at the time such 
 

18 

Rights are exercised as herein provided an amount in cash equal to the same fractions of the current market value of one Preferred Share. For
the purposes of this Section 14(b), the current market value of a Preferred Share shall be the closing price of a Preferred Share (as determined pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior to the
date of such exercise. 
 
(c)    The holder of a Right by the acceptance of the Right expressly waives any right to receive fractional Rights or fractional shares upon exercise of a Right (except as provided above). 
 
Section 15.    Rights of
Action.    All rights of action in respect of this Agreement, excepting the rights of action given to the Rights Agent under Section 18 hereof, are vested in the respective registered holders of the Right Certificates (and,
prior to the Distribution Date, the registered holders of the Common Shares); and any registered holder of any Right Certificate (or, prior to the Distribution Date, of the Common Shares) may, without the consent of the Rights Agent or of the holder
of any other Right Certificate (or, prior to the Distribution Date, of the Common Shares), in such holder’s own behalf and for such holder’s own benefit, enforce, and may institute and maintain any suit, action or proceeding against the
Company to enforce, or otherwise act in respect of, such holder’s right to exercise the Rights evidenced by such Right Certificate in the manner provided in such Right 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 will be entitled to specific performance of the obligations under,
and injunctive relief against actual or threatened violations of the obligations of any Person subject to, this Agreement. 
 
Section 16.    Agreement of Right Holders.    Every holder of a Right, by accepting the
same, consents and agrees with the Company and the Rights Agent and with every other holder of a Right that: 
 
(a)    prior to the Distribution Date, the Rights will be transferable only in connection with the transfer of the
Common Shares; 
 
(b)    after
the Distribution Date, the Right Certificates are transferable only on the registry books maintained by the Rights Agent if surrendered at the principal office of the Rights Agent, duly endorsed or accompanied by a proper instrument of transfer; and

 
(c)    the Company and the
Rights Agent may deem and treat the person in whose name the Right Certificate (or, prior to the Distribution Date, the associated Common Shares certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby
(notwithstanding any notations of ownership or writing on the Right Certificates or the associated Common Shares certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the
Rights Agent shall be affected by any notice to the contrary. 
 

19 

Section 17.    Right Certificate Holder Not Deemed a
Stockholder.    No holder, as such, of any Right Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the holder of the Preferred Shares 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 Right Certificate be construed to confer upon the holder of any Right Certificate, as such, any of the rights of a stockholder of the
Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting
stockholders (except as provided in Section 25 hereof), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Right Certificate shall have been exercised in accordance with the provisions hereof.

 
Section
18.    Compensation and Indemnity of the Rights Agent.    The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time, on
demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the administration and execution of this Agreement and the exercise and performance of its duties hereunder. The Company also agrees to
indemnify the Rights Agent (including employees, directors, officers and agents of 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 (including employees, directors, officers and agents of the Rights Agent), for anything done or omitted by the Rights Agent (including employees, directors, officers and agents of the Rights Agent) in connection with the acceptance
and administration of this Agreement. 
 
Section
19.    Merger or Consolidation or Change of Name of Rights Agent.    Any corporation into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any
corporation resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any corporation succeeding to the stock transfer or corporate trust 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 that such corporation would be eligible for appointment
as a successor Rights Agent under the provisions of Section 21 hereof. In case at the time such successor Rights Agent shall succeed to the agency created by this Agreement any of the Right Certificates shall have been countersigned but not
delivered, any such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Right Certificates so countersigned; and in case at that time any of the Right Certificates shall not have been countersigned,
any successor Rights Agent may countersign such Right Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such Right Certificates shall have the full force provided in
the Right Certificates and in this Agreement. 
 
In
case at any time the name of the Rights Agent shall be changed and at such time any of the Right Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Right
Certificates so countersigned; and in case at that time any of the Right Certificates shall not have been countersigned, the 
 

20 

Rights Agent may countersign such Right Certificates either in its prior name or in its changed name; and in all such cases such Right
Certificates shall have the full force provided in the Right Certificates and in this Agreement. 
 
Section 20.    Rights and 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 Right Certificates, by their acceptance thereof, shall be bound: 
 
(a)    The Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the opinion of
such counsel shall be full and complete authorization and protection to the Rights Agent as to any action taken or omitted 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 be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed)
may be deemed to be conclusively proved and established by a certificate signed by any one of the Chairman of the Board, the Chief Executive Officer, the President, any Vice President, the General Counsel, the Treasurer or the 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 protected and shall incur no liability for any action taken, suffered or omitted by it in good faith unless a court of competent jurisdiction determines that the Rights Agent’s gross negligence or willful misconduct was the primary
cause of any loss to the Company or any holder of a Right Certificate (or, prior to the Distribution Date, any holder of a Right as holder of a Common Share). The Rights Agent makes no representation or warranty with respect to and is not
responsible for the validity, value or availability of the Rights, the Right Certificates or the Preferred Shares. 
 
(d)    The Rights Agent shall be protected and shall incur no liability for any action taken, suffered or omitted by
it in connection with, its administration of this Agreement in reliance upon any Right Certificate or certificate for the Common Shares 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, or otherwise
upon the advice of counsel as set forth in this Section 20. 
 
(e)    The Rights Agent shall not be assumed to have knowledge of and shall not be required to take note of or act upon any fact or circumstance including, without limitation, the occurrence of facts or
circumstances leading to the Shares Acquisition Date or the Distribution Date, facts or circumstances relating to whether any Person may be an Affiliate or an Associate of any other Person, facts or circumstances relevant to an adjustment to the
Purchase Price, facts 
 

21 

or circumstances relevant to events described in Section 13 (mergers, etc.), Section 23 (redemption) and Section 24 (exchange) which may be
relevant to performance by the rights Agent under this Agreement unless the Company has provided written notice thereof to the Rights Agent; and the Company agrees that it will (i) promptly notify the Rights Agent in writing of the occurrence of the
Shares Acquisition Date (including the identity of the Acquiring Person and the date on which the Shares Acquisition Date occurred), the Distribution Date, the Redemption Date, and of any events described in Section 13 (merger), and (ii) promptly
provide the Rights Agent with such other information as the Rights Agent may reasonably request in connection with the performance of its duties under this Agreement. 
 
(f)    Anything in this Agreement to the contrary notwithstanding, in no event shall the
Rights Agent be liable for special, indirect or consequential damage or loss of any kind whatsoever (including but not limited to lost profits), even if the Rights Agent has been advised of the likelihood of such loss or damage and regardless of the
form of action, provided the Rights Agent has acted in good faith under this Agreement. 
 
(g)    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. 
 
(h)    The Rights Agent is hereby authorized and directed to accept instructions with
respect to the performance of its duties hereunder from any one of the Chairman of the Board, the Chief Executive Officer, the President, any Vice President, the General Counsel, the Secretary or the 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 by it in good faith in accordance with instructions of any such officer or for any delay in acting while waiting for those
instructions. Any application by the Rights Agent for written instructions from the Company may, at the option of the Rights Agent, set forth in writing any action proposed to be taken or omitted by the Rights Agent with respect to its duties or
obligations under this Rights Agreement and the date on and/or after which such action shall be taken or omitted and the Rights Agent shall not be liable for any action taken or omitted in accordance with a proposal included in any such application
on or after the date specified therein (which date shall not be less than three Business Days after the date any such officer actually receives such application, unless any such officer shall have consented in writing to an earlier date) unless,
prior to taking or omitting any such action, the Rights Agent has received written instructions in response to such application specifying the action to be taken or omitted. 
 
(i)    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. 
 

22 

(j)    The Rights Agent may execute and exercise any of the rights or
powers hereby vested in it or perform any duty hereunder either itself or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents
or for any loss to the Company resulting from any such act, default, neglect or misconduct, provided reasonable care was exercised in the selection and continued employment thereof. 
 
Section 21.    Change of Rights Agent.    The Rights Agent or
any successor Rights Agent may resign and be discharged from its duties under this Agreement upon 30 days’ notice in writing mailed to the Company and to each transfer agent of the Common Shares or Preferred Shares by registered or certified
mail, and to the holders of the Right Certificates by first-class mail. The Company may remove the Rights Agent or any successor Rights Agent upon 30 days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may
be, and to each transfer agent of the Common Shares or Preferred Shares by registered or certified mail, and to the holders of the Right Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become
incapable of acting, the Company shall appoint a successor to the Rights Agent. If the Company shall fail to make such appointment within a period of 30 days after giving notice of such removal or after it has been notified in writing of such
resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a Right Certificate (who shall, with such notice, submit such holder’s Right Certificate for inspection by the Company), then the registered holder of
any Right Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be (i) a corporation organized and doing
business under the laws of the United States or of the State of California (or of any other state of the United States so long as such corporation is authorized to do business as a banking institution in the State of California), in good standing,
having an office in the State of California, which is authorized under such laws to exercise corporate trust or stock transfer powers and is subject to supervision or examination by federal or state authority and which has at the time of its
appointment as Rights Agent a combined capital and surplus of at least $50 million dollars or (ii) a subsidiary of a corporation described in clause (i) 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 Shares or Preferred Shares, and mail a notice thereof in writing to the registered holders of the Right Certificates. Failure to give any notice provided for in this Section 21, however, or any defect therein,
shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 
 
Section 22.    Issuance of New Right
Certificates.    Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the Company may, at its option, issue new Right Certificates evidencing Rights in such form as may be approved by its
Board of Directors 
 

23 

to reflect any adjustment or change in the Purchase Price and the number or kind or class of shares or other securities or property
purchasable under the Right Certificates made in accordance with the provisions of this Agreement. In addition, following the Distribution Date and prior to the redemption or expiration of the Rights, in connection with the issuance or sale of
Common Shares pursuant to the exercise of stock options or under any employee plan or arrangement or upon the exercise, conversion or exchange of other securities of the Company, in each case, which options or securities are outstanding prior to the
Distribution Date, the Board of Directors shall 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
and this sentence shall be null and void ab initio if, and to the extent that, such issuance or this sentence would create a significant risk of or result in material adverse tax consequences to the Company or the Person to whom such Rights
Certificate would be issued or would create a significant risk of or result in such options’ or employee plans’ or arrangements’ failing to qualify for otherwise available special tax treatment 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. 
 
(a)    The Board of Directors of the Company may, by a resolution of the Board of
Directors, at its option, at any time prior to such time as any Person becomes an Acquiring Person, redeem all but not less than all the then outstanding Rights at a redemption price of $0.001 per Right, 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”). After the period for redemption of the Rights has expired, the Board of
Directors may not extend the period for redemption of the Rights or otherwise provide for their redemption. The redemption of the Rights by the Board of Directors may be made effective at such time, on such basis and subject to such conditions as
the Board of Directors in its sole discretion may establish. 
 
(b)    Immediately upon the action of the Board of Directors of the Company ordering the redemption of the Rights pursuant to paragraph (a) of this Section 23, and without any further action and without any
notice, the right to exercise the Rights will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price. The Company shall promptly give public notice of any such redemption; provided,
however, that the failure to give, or any defect in, any such notice shall not affect the validity of such redemption. Within 10 days after such action of the Board of Directors ordering the redemption of the Rights pursuant to paragraph (a),
the Company shall mail a notice of redemption to all the holders of the then outstanding Rights at their last addresses as they appear upon the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the
transfer agent for the Common Shares. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. If the payment of the Redemption Price is not included in such notice, each such
notice shall state the method by which the payment of the Redemption Price will be made. Neither the Company nor any of its Affiliates or Associates may redeem, acquire or purchase for value any Rights at any time in any manner other than that

 

24 

specifically set forth in this Section 23 or in Section 24 hereof, and other than in connection with the purchase of Common Shares prior to
the Distribution Date. 
 
Section
24.    Exchange. 
 
(a)    The Board of Directors of the Company 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 11(a)(ii) hereof) for Common Shares at an exchange ratio of one Common Share 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 of Directors 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 Shares for or pursuant to the terms of any such plan), together with all
Affiliates and Associates of such Person, becomes the Beneficial Owner of a majority of the Common Shares then outstanding. 
 
(b)    Immediately upon the action of the Board of Directors of the Company ordering the exchange of any Rights
pursuant Section 24(a) hereof 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 Common Shares 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 Shares for Rights will be effected and, in the event of any
partial exchange, the number of Rights which will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which have become void pursuant to the provisions of Section 11(a)(ii) hereof) held by
each holder of Rights. 
 
(c)    In any exchange pursuant to this Section 24, the Company, at its option, may substitute Preferred Shares (or common stock equivalents, as such term is defined in Section 11(a)(iii) hereof) for Common Shares
exchangeable for Rights, at the initial rate of one one-thousandth of a Preferred Share (or common stock equivalents) for each Common Share, as appropriately adjusted to reflect adjustments in the voting rights of the Preferred Shares pursuant to
the terms thereof, so that the fraction of a Preferred Share delivered in lieu of each Common Share shall have the same voting rights as one Common Share. 
 
(d)    In the event that there shall not be sufficient Common Shares, Preferred Shares or common stock equivalents
authorized by the Company’s certificate of incorporation and not outstanding or subscribed for, or reserved or otherwise committed for issuance for 
 

25 

purposes other than upon exercise of Rights, 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 Common Shares, Preferred Shares or common stock equivalents for issuance upon exchange of the Rights. 
 
(e)    The Company shall not be required to issue fractions of Common Shares or to
distribute certificates which evidence fractional Common Shares. In lieu of such fractional Common Shares, the Company shall pay to the registered holders of the Right Certificates with regard to which such fractional Common Shares would otherwise
be issuable an amount in cash equal to the same fraction of the current per share market value of a whole Common Share. For the purposes of this paragraph (e), the current per share market value of a whole Common Share shall be the closing price of
a Common Share (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
after the Distribution Date (i) to pay any dividend payable in stock of any class to the holders of its Preferred Shares or to make any other distribution to the holders of its Preferred Shares (other than a regular quarterly cash dividend), (ii) to
offer to the holders of its Preferred Shares rights or warrants to subscribe for or to purchase any additional Preferred Shares or shares of stock of any class or any other securities, rights or options, (iii) to effect any reclassification of its
Preferred Shares (other than a reclassification involving only the subdivision of outstanding Preferred Shares), (iv) to effect any consolidation or merger into or with, or to effect any sale or other transfer (or to permit one or more of its
Subsidiaries to effect any sale or other transfer), in one or more transactions, of 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to, any other Person, (v) to effect the liquidation, dissolution or
winding up of the Company, or (vi) to declare or pay any dividend on the Common Shares payable in Common Shares or to effect a subdivision, combination or consolidation of the Common Shares (by reclassification or otherwise than by payment of
dividends in Common Shares), then, in each such case, the Company shall give to the Rights Agent and each holder of a Right Certificate, in accordance with Section 26 hereof, a notice of such proposed action, which shall specify the record date for
the purposes of such stock dividend, or distribution 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 Common Shares and/or Preferred Shares, if any such date is to be fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii) above at least 10 days prior to the record date for
determining holders of the Preferred Shares for purposes of such action, and in the case of any such other action, at least 10 days prior to the date of the taking of such proposed action or the date of participation therein by the holders of the
Common Shares and/or Preferred Shares, whichever shall be the earlier. 
 
(b)    In case any event set forth in Section 11(a)(ii) hereof shall occur, then the Company shall as soon as practicable thereafter give to each holder of a Right Certificate, in 
 

26 

accordance with Section 26 hereof, a notice of the occurrence of such event, which notice shall describe such event and the consequences of
such event to holders of Rights under Section 11(a)(ii) hereof. 
 
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 Right Certificate to or on the Company shall be
sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows: 
 
Intuit Inc. 
2535 Garcia Avenue 
Mountain View, California 94043 
Attention: Corporate
Secretary 
 
Subject to the provisions of Section 21 hereof, any
notice or demand authorized by this Agreement to be given or made by the Company or by the holder of any Right Certificate to or on the Rights Agent shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until
another address is filed in writing with the Company) as follows: 
 
American Stock Transfer and Trust Company 
40 Wall Street

New York, New York 10005 
Attention: Corporate Trust Department 
 
Notices or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any
Right Certificate shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books of the Company. 
 
Section 27.    Supplements and
Amendments.    The Company may, by a resolution of the Board of Directors, from time to time, and the Rights Agent shall, if the Company directs, supplement or amend this Agreement without the approval of any holders of Right
Certificates in order to cure any ambiguity, to correct or supplement any provision contained herein which may be defective or inconsistent with any other provisions herein, or to make any other provisions or changes with respect to the Rights which
the Company may deem necessary or desirable, including, without limitation, to modify or amend the definition of Acquiring Person set forth in Section 1(a) hereof, to change the Purchase Price set forth in Section 7(b), or to extend or shorten the
period for redemption of the Rights; provided, however, that from and after such time as any Person becomes an Acquiring Person, this Agreement shall not be amended in any manner which would adversely affect the interests of the
holders of Rights (other than an Acquiring Person and its Affiliates and Associates), including, without limitation, to extend the period for redemption of the Rights, or otherwise provide for their redemption, or to provide for an earlier Final
Expiration Date. Any such supplement or amendment will be evidenced by a writing signed by the Company and the Rights Agent. The Rights Agent shall not be obligated to enter into any amendment or supplement to this Agreement which in the opinion of
the Rights Agent, may 
 

27 

materially adversely affect the rights, duties, liabilities to the Company or immunities to the Company of the Rights Agent. 
 
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.    Benefits of this Agreement.    Nothing in this Agreement shall be construed to give to any person or corporation other than the Company, the Rights Agent and the registered holders of the Right
Certificates (and, prior to the Distribution Date, the Common Shares) 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 Right Certificates (and, prior to the Distribution Date, the Common Shares). 
 
Section 30.    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, then such term, provision, covenant or restriction shall be enforced to the maximum extent permissible, and 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. 
 
Section 31.    Governing Law.    This Agreement and each Right Certificate issued hereunder
shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts to be made and performed entirely within such
State. 
 
Section
32.    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 33.    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. 
 
Section 34.    Entire Agreement.    This Agreement contains the entire agreement between the parties with respect to the subject matter hereof. 
 

28 

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

	 Company:
  
 INTUIT INC.

	
	 By:
	 	 /s/ Robert B.
Henske                                       
 

	 Title:
	 	 Senior Vice President and CFO

 

	 Rights Agent:
  
 AMERICAN STOCK TRANSFER AND TRUST COMPANY

	
	 By:
	 	 /s/ Herbert J.
Lemmer                                    

	 Title:
	 	 Vice President

 

29 

Exhibit A 
 
FORM 
 
of 
 
CERTIFICATE OF DESIGNATIONS 
 
of 
 
SERIES B JUNIOR PARTICIPATING PREFERRED STOCK 
 
of 
 
INTUIT INC. 
 
(Pursuant to Section 151 of the 
 
Delaware General Corporation Law) 
 

 
Intuit Inc., a corporation organized and existing under the General Corporation Law of the State of Delaware (hereinafter called the
“Corporation”), hereby certifies that the following resolution was adopted by the Board of Directors of the Corporation as required by Section 151 of the General Corporation Law at a meeting duly called and held on April 29, 1998:

 
RESOLVED, that pursuant to the authority granted
to and vested in the Board of Directors of this Corporation (hereinafter called the “Board of Directors” or the “Board”) in accordance with the provisions of the Certificate of Incorporation of the Corporation, the Board of
Directors hereby creates a series of Preferred Stock, par value $0.01 per share (the “Preferred Stock”), of the Corporation and hereby states the designation and number of shares, and fixes the relative rights, preferences, and limitations
thereof as follows: 
 
Series B Junior
Participating Preferred Stock: 
 
Section
1.    Designation and Amount.    The shares of such series shall be designated as “Series B Junior Participating Preferred Stock” (the “Series B Preferred Stock”) and the number of
shares constituting the Series B Preferred Stock shall be 200,000[i]]. Such number of shares may be increased or
decreased by resolution of the Board of Directors; provided, that no decrease shall reduce the number of shares of Series B Preferred Stock to a number less than the number of shares then outstanding plus the number of shares reserved for
issuance upon the exercise of outstanding options, rights or warrants or upon the conversion of any outstanding securities issued by the Corporation convertible into Series B Preferred Stock. 

The authorized number of shares of Series B Junior Participating Preferred Stock was increased from
200,000 to 250,000 shares by the filing of the Certificate of Increase of Series B Junior Participating Preferred Stock attached hereto as Exhibit A-1 with the Delaware Secretary of State on November 9, 1999. 

Section 2.    Dividends and Distributions. 
 
(A)    Subject to the rights of the
holders of any shares of any series of Preferred Stock (or any other stock) ranking prior and superior to the Series B Preferred Stock with respect to dividends, the holders of shares of Series B 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 first 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 B Preferred Stock, in an amount (if any) per share (rounded to the nearest
cent), subject to the provision for adjustment hereinafter set forth, equal to 1000 times the aggregate per share amount of all cash dividends, and 1000 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, par value $0.01 per share (the “Common Stock”), of the Company or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise), declared
on the Common Stock since the immediately preceding Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of Series B Preferred Stock. In the event
the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise
than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the amount to which holders of shares of Series B Preferred Stock were entitled immediately prior to such
event under 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 B Preferred Stock as provided in paragraph (A) of this Section immediately after it declares a dividend
or distribution on the Common Stock (other than a dividend payable in shares of Common Stock). 
 
(C)    Dividends due pursuant to paragraph (A) of this Section shall begin to accrue and be cumulative on outstanding shares of Series B Preferred Stock from the Quarterly Dividend
Payment Date next preceding the date of issue of such shares, unless the date of issue of such shares is prior to the record date for the first 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 B 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 B Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The
Board of Directors may fix a record date for the determination of 
 

2 

holders of shares of Series B Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record date
shall be not more than 60 days prior to the date fixed for the payment thereof. 
 
Section 3.    Voting Rights.    The holders of shares of Series B Preferred Stock shall have the following voting rights: 
 
(A)    Subject to the provision for
adjustment hereinafter set forth, each share of Series B Preferred Stock shall entitle the holder thereof to 1000 votes on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at any time declare
or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of
Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the number of votes per share to which holders of shares of Series B Preferred Stock were entitled immediately prior to such event shall be adjusted by
multiplying such number by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately
prior to such event. 
 
(B)    Except as otherwise provided herein, in any other Certificate of Designations creating a series of Preferred Stock or any similar stock, or by law, the holders of shares of Series B Preferred Stock and the
holders of shares of Common Stock and any other capital stock of the Corporation having general voting rights shall vote together as one class on all matters submitted to a vote of stockholders of the Corporation. 
 
(C)    Except as set forth herein, or as
otherwise provided by law, holders of Series B Preferred Stock shall have no special voting rights and their consent shall not be required (except to the extent they are entitled to vote with holders of Common Stock as set forth herein) for taking
any corporate action. 
 
Section
4.    Certain Restrictions. 
 
(A)    Whenever quarterly dividends or other dividends or distributions payable on the Series B Preferred Stock as provided in Section 2 are in arrears, thereafter and until all accrued and unpaid dividends and
distributions, whether or not declared, on shares of Series B Preferred Stock outstanding shall have been paid in full, the Corporation shall not: 
 
(i)    declare or pay dividends, or make any other distributions, on any shares of stock ranking junior (either as to
dividends or upon liquidation, dissolution or winding up) to the Series B Preferred Stock; 
 
(ii)    declare or pay dividends, or make any other distributions, on any shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up)
with the Series B Preferred Stock, except dividends paid ratably on the Series B 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; or 
 

3 

(iii)    redeem or purchase or otherwise acquire for consideration
shares of any stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series B Preferred Stock, provided that the Corporation may at any time redeem, purchase or otherwise acquire shares of any such junior
stock in exchange for shares of any stock of the Corporation ranking junior (as to dividends and upon dissolution, liquidation or winding up) to the Series B Preferred Stock. 
 
(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. 
 
Section 5.    Reacquired
Shares.    Any shares of Series B Preferred Stock purchased or otherwise acquired by the Corporation in any manner whatsoever shall be retired and canceled promptly after the acquisition thereof. All such shares shall upon
their cancellation become authorized but unissued shares of Preferred Stock and may be reissued as part of a new series of Preferred Stock subject to the conditions and restrictions on issuance set forth herein, in the Certificate of Incorporation,
or in any other Certificate of Designations creating a series of Preferred Stock or any similar stock or as otherwise required by law. 
 
Section 6.    Liquidation, Dissolution or Winding Up. 
 
(A)    Upon any liquidation, dissolution
or winding up of the Corporation, the holders of shares of Series B Preferred Stock shall be entitled to receive, prior and in preference to any distribution of any assets of the Corporation to the holders of Common Stock, the amount of $10.00 per
share for each share of Series B Preferred Stock then held by them. Thereafter, the holders of shares of Series B Preferred Stock shall be entitled to receive an aggregate amount per share, subject to the provision for adjustment hereinafter set
forth, equal to 1000 times the aggregate amount to be distributed per share to holders of shares of Common Stock plus an amount equal to any accrued and unpaid dividends. In the event the Corporation shall at any time declare or pay any dividend on
the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a
greater or lesser number of shares of Common Stock, then in each such case the aggregate amount to which holders of shares of Series B Preferred Stock were entitled immediately prior to such event under 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)    If the assets of the Corporation legally available for distribution to the holders of shares of Series B Preferred Stock upon liquidation, dissolution or winding up of the Corporation are insufficient to
pay the full preferential amount set forth in the first sentence of paragraph (A) above, then the entire assets of the Corporation legally available for distribution to the holders of Series B Preferred Stock shall be distributed among such holders
in proportion to the shares of Series B Preferred Stock then held by them. 
 

4 

 
(C)    The foregoing rights upon liquidation, dissolution or winding up provided to the holders of Series B Preferred Stock shall be subject to the rights of the holders of any other series of Preferred Stock (or
any other stock) ranking prior and superior to the Series B Preferred Stock upon liquidation, dissolution or winding up. 
 
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 other property, then in any such case each share of Series B Preferred Stock shall
at the same time be similarly exchanged or changed into an amount per share, subject to the provision for adjustment hereinafter set forth, equal to 1000 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 declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a
subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each
such case the amount set forth in the preceding sentence with respect to the exchange or change of shares of Series B 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 B
Preferred Stock shall not be redeemable. 
 
IN
WITNESS WHEREOF, this Certificate of Designations is executed on behalf of the Corporation by its President and attested by its Assistant Secretary this 1st day of May, 1998. 
 

	 INTUIT INC.

	
	 By:
	 	                                      
                                        
    

	 	 	 President

 

	
	 Attest:

	
	 By:
	 	                                      
                                        
         

	 	 	 Assistant Secretary

 

5 

EXHIBIT A-1 
 
CERTIFICATE OF
INCREASE 
 
OF

 
SERIES B
JUNIOR PARTICIPATING PREFERRED STOCK 
 
OF 
 
INTUIT INC. 
 
(Pursuant to Section 151(g) of the 
Delaware General Corporation Law)

 
Intuit Inc., a corporation organized and
existing under the General Corporation Law of the State of Delaware (the “Corporation”) does hereby certify: 
 
FIRST:    In a Certificate of Designation filed with the Secretary of State of the State of
Delaware on May 5, 1998, pursuant to Section 151 of the General Corporation Law of the State of Delaware, the Corporation was authorized to issue 200,000 shares of Series B Junior Participating Preferred Stock, as a series of the Corporation’s
authorized Preferred Stock, par value $0.01 per share; 
 
SECOND:    The board of directors of the Corporation by resolution adopted October 15, 1999, duly authorized and directed that the number of shares of the Corporation’s Series B Junior
Participating Preferred Stock be increased from 200,000 to 250,000 shares. 
 
In witness whereof, the Corporation has caused this certificate to be signed by its duly authorized officer this 9th day of November, 1999. 
 

	 INTUIT INC.

	
	 By:
	 	                     /s/ Greg J.
Santora                    

	 	 	 Greg J. Santora, Senior Vice President and
 Chief Financial Officer

Exhibit B 
 
FORM OF RIGHT CERTIFICATE 
 
Certificate No. R-
                                        
                                        
                                        
                                        
             Rights 
 
NOT EXERCISABLE AFTER MAY 1, 2008 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $0.001 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.

 
RIGHT CERTIFICATE 
 
INTUIT INC. 
 
This certifies
that                         or registered assigns, is the registered owner of the number of Rights set forth above, each of
which entitles the owner thereof, subject to the terms, provisions and conditions of the Rights Agreement, dated as of May 1, 1998, as amended and restated as of January 30, 2003, (the “Rights Agreement”), between Intuit Inc., a Delaware
corporation (the “Company”), and American Stock Transfer and Trust Company (the “Rights Agent”), to purchase from the Company at any time after the Distribution Date (as such term is defined in the Rights Agreement) and prior to
5:00 p.m., Pacific Time, on May 1, 2008 at the principal office of the Rights Agent, or at the office of its successor as Rights Agent, one-third of one one-thousandth (i.e., 1/3000) of a fully paid non-assessable share of Series B Junior
Participating Preferred Stock, par value $0.01 per share (the “Preferred Shares”), of the Company, at a purchase price of $300.00 per one-third of one one-thousandth (i.e., 1/3000) of a Preferred Share (the “Purchase Price”),
upon presentation and surrender of this Right Certificate with the Certification and the Form of Election to Purchase duly executed. The number of Rights evidenced by this Right Certificate (and the number of one-third of one one-thousandths of a
Preferred Share which may be purchased upon exercise hereof) set forth above, and the Purchase Price set forth above, are the number and Purchase Price as of January 30, 2003, based on the Preferred Shares as constituted at such date. As provided in
the Rights Agreement, the Purchase Price and the number of one one-thousandths of a Preferred Share which may be purchased upon the exercise of the Rights evidenced by this Right Certificate are subject to modification and adjustment upon the
happening of certain events. 
 
This Right
Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by reference and made a part hereof and to which Rights Agreement reference is
hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Right Certificates. Copies of the Rights Agreement are on file at the
principal executive offices of the Company and the above-mentioned offices of the Rights Agent. 
 
This Right Certificate, with or without other Right Certificates, upon surrender at the principal office of the Rights Agent, may be exchanged for another Right Certificate or Right Certificates of
like tenor and date evidencing Rights entitling the holder to purchase a like aggregate number of Preferred Shares as the Rights evidenced by the Right Certificate or Right 

Certificates surrendered shall have entitled such holder to purchase. If this Right Certificate shall be exercised in part, the holder shall
be entitled to receive upon surrender hereof another Right Certificate or Right Certificates for the number of whole Rights not exercised. 
 
Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate (i) may be redeemed by the Company at a
redemption price of $0.001 per Right or (ii) may be exchanged in whole or in part for Preferred Shares or shares of the Company’s Common Stock, par value $0.01 per share. 
 
No fractional Preferred Shares will be issued upon the exercise of any Right or Rights evidenced hereby
(other than fractions which are integral multiples of one-third of one one-thousandths of a Preferred Share or such other fraction as provided for by adjustment provisions in the Rights Agreement, which may, at the election of the Company, be
evidenced by depository receipts), but in lieu thereof a cash payment will be made, as provided in the Rights Agreement. 
 
No holder of this Right Certificate shall be entitled to vote or receive dividends or be deemed for any purpose the holder of the
Preferred Shares 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 or withhold consent to any corporate action, or to receive notice of meetings
or other actions affecting stockholders (except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by this Right Certificate shall have been exercised as provided
in the Rights Agreement. 
 
This Right Certificate
shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent. 
 
WITNESS the facsimile signature of the proper officers of the Company and its corporate seal. 
 
Dated as
of                 . 
 

	 Attest:
	 	 	 	 INTUIT INC.

	
	 By:
	 	                                      
                                        
                                   
	 	 	 	 By:
	 	                                      
                                        
                                     
 

	 Countersigned:
	 	 	 	 	 	 

 

	 AMERICAN STOCK TRANSFER AND TRUST COMPANY, Rights Agent

	
	 By:
	 	                                      
                                        
                  

	 	 	 Authorized Signature

 

2 

Form of Reverse Side of Right Certificate 
 
FORM OF ASSIGNMENT 
 
(To be executed by the registered holder if such 
holder desires to transfer the Right Certificate) 
 
FOR VALUE RECEIVED
                                        
hereby sells, assigns and transfers unto
                                     (Please print name and
address of transferee) this Right Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint
                                        
                         Attorney, to transfer the within Right Certificate on the books of the within-named Company, with
full power of substitution. 
 
Dated:
                                 
 

	 
	
	 	 	                                      
                                        
                       

	 	 	   Signature

 
Signature(s)
Guaranteed: 
 
SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE
GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15 
 

 
The undersigned hereby certifies that the Rights evidenced by this Right Certificate are not beneficially owned by an Acquiring Person or
an Affiliate or Associate thereof (as defined in the Rights Agreement). 
 

	 
	
	 	 	                                      
                                        
                       

	 	 	   Signature

 

Form of Reverse Side of Right Certificate—continued 
 
FORM OF ELECTION TO PURCHASE 
 
(To be executed if holder desires to 
exercise the Right Certificate) 
 
To
                                : 
 
The undersigned hereby irrevocably elects to exercise
             Rights represented by this Right Certificate to purchase the Preferred Shares issuable upon the exercise of such Rights and requests that certificates for such Preferred Shares
be issued in the name of: 
 
Please insert social security

or other identifying number 
 
                                     
                                        
                                        
                                        
                                        
                            
(Please print name and address) 
 
                                     
                                        
                                        
                                        
                                        
                            
 
                                     
                                        
                                        
                                        
                                        
                            
 
If such number of Rights shall not be all the Rights evidenced by this Right Certificate, a new Right Certificate for the
balance remaining of such Rights shall be registered in the name of and delivered to: 
 
Please insert social security 
or other identifying number 
 
                                     
                                        
                                        
                                        
                                        
                            
(Please print name and address) 
 
                                     
                                        
                                        
                                        
                                        
                            
 
                                     
                                        
                                        
                                        
                                        
                            
 
Dated:
                                 
 

	 
	
	 	 	                                      
                                        
           

	 	 	   Signature

 
Signature(s) Guaranteed:

 
SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR
INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15 
 

2 

Form of Reverse Side of Right Certificate—continued 
 

 
The undersigned hereby certifies that the Rights evidenced by this Right Certificate are not beneficially owned by an Acquiring Person or
an Affiliate or Associate thereof (as defined in the Rights Agreement). 
 

	 
	
	 	 	                                      
                                        
                       

	 	 	   Signature

 

 
NOTICE 
 
The signature in the foregoing Forms of Assignment and Election must conform to the name as written upon the face of this Right
Certificate in every particular, without alteration or any change whatsoever. 
 
In the event the certification set forth above in the Form of Assignment or the Form of Election to Purchase, as the case may be, is not completed, the Company and the Rights Agent will deem the
beneficial owner of the Rights evidenced by this Right Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement) and such Assignment or Election to Purchase will not be honored. 

Exhibit C 
 
SUMMARY OF RIGHTS TO PURCHASE 
PREFERRED SHARES 
 
On April 29, 1998, the Board of Directors of Intuit Inc. (the “Company”) declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of common
stock, par value $0.01 per share (the “Common Shares”), of the Company. The dividend is payable to stockholders of record on May 11, 1998 (the “Record Date”). In addition, one Right shall be issued with each Common Share that
becomes outstanding (i) between the Record Date and the earliest of the Distribution Date, the Redemption Date and the Final Expiration Date (as such terms are defined in the Agreement) or (ii) following the Distribution Date and prior to the
Redemption Date or Final Expiration Date, pursuant to the exercise of stock options or under any employee plan or arrangement or upon the exercise, conversion or exchange of other securities of the Corporation, which options or securities were
outstanding prior to the Distribution Date. As of January 30, 2003, each Right entitles the registered holder to purchase from the Company one-third of one one-thousandth (i.e., 1/3000) of a share of Series B Junior Participating Preferred Stock,
par value $0.01 per share (the “Preferred Shares”), of the Company, at a price of $300.00 per one-third of one one-thousandth of a Preferred Share (the “Purchase Price”), subject to adjustment. The description and terms of the
Rights are set forth in the Third Amended and Restated Rights Agreement dated as of January 30, 2003 (the “Rights Agreement”) between the Company and American Stock Transfer and Trust Company, as Rights Agent (the “Rights
Agent”). 
 
Until the earlier to occur of (i)
10 days following a public announcement or disclosure that a person or group of affiliated or associated persons (an “Acquiring Person”), has acquired beneficial ownership of 20% (the “Designated Percentage”) or more of the
outstanding Common Shares or (ii) 10 business days (or such later date as may be determined by action of the Board of Directors), following the announcement of an intention to make a tender offer or exchange offer the consummation of which would
result in a person or group becoming an Acquiring Person (the earlier of such dates being called the “Distribution Date”), the Rights will be evidenced, with respect to any of the Common Share certificates outstanding as of the Record
Date, by such Common Share certificates with a copy of this Summary of Rights attached thereto. No Person shall become an Acquiring Person if the Board of Directors of the Company determines in good faith that a Person who would otherwise be an
Acquiring Person has become such inadvertently, and such Person as promptly as practicable takes such actions as may be necessary so that such Person would no longer be considered an Acquiring Person. 
 
The Rights Agreement provides that, until the Distribution
Date, the Rights will be transferred with and only with the Common Shares. Until the Distribution Date (or earlier redemption or expiration of the Rights), new Common Share certificates issued after the Record Date, upon transfer or new issuance of
Common Shares, will contain a notation incorporating the Rights Agreement by reference. Until the Distribution Date (or earlier redemption or expiration 

of the Rights), the surrender for transfer of any certificates for Common Shares outstanding as of the Record Date, even without such
notation or a copy of this Summary of Rights being attached thereto, will also constitute the transfer of the Rights associated with the Common Shares represented by such certificate. As soon as practicable following the Distribution Date, separate
certificates evidencing the Rights (“Right Certificates”) will be mailed to holders of record of the Common Shares as of the Close of Business on the Distribution Date and such separate Right Certificates alone will evidence the Rights.

 
The Rights are not exercisable until the
Distribution Date. The Rights will expire on May 1, 2008 (the “Final Expiration Date”), unless the Final Expiration Date is extended or unless the Rights are earlier redeemed or exchanged by the Company, in each case, as described below.

 
The Purchase Price payable, and the number of
Preferred Shares or other securities or property issuable, upon exercise of the Rights are subject to adjustment from time to time to prevent dilution (i) in the event of a stock dividend on, or a subdivision, combination or reclassification of, the
Preferred Shares, (ii) upon the grant to holders of the Preferred Shares of certain rights or warrants to subscribe for or purchase Preferred Shares at a price, or securities convertible into Preferred Shares with a conversion price, less than the
then current market price of the Preferred Shares or (iii) upon the distribution to holders of the Preferred Shares of evidences of indebtedness or assets (excluding regular periodic cash dividends paid out of earnings or retained earnings or
dividends payable in Preferred Shares) or of subscription rights or warrants (other than those referred to above). 
 
The number of outstanding Rights and the number of one one-thousandths of a Preferred Share issuable upon exercise of each Right are also
subject to adjustment in the event of a stock dividend on the Common Shares payable in Common Shares or subdivisions, consolidations or combinations of the Common Shares occurring, in any such case, prior to the Distribution Date. 
 
Preferred Shares purchasable upon exercise of the Rights will
not be redeemable. Each Preferred Share will be entitled to a quarterly dividend payment of 1000 times the dividend declared per Common Share. In the event of liquidation, each Preferred Share will be entitled to a $10.00 preference, and thereafter
the holders of the Preferred Shares will be entitled to an aggregate payment of 1000 times the aggregate payment made per Common Share. Each Preferred Share will have 1000 votes, voting together with the Common Shares. Finally, in the event of any
merger, consolidation or other transaction in which Common Shares are exchanged, each Preferred Share will be entitled to receive 1000 times the amount received per Common Share. These rights are protected by customary antidilution provisions.

 
Because of the nature of the Preferred
Shares’ dividend, liquidation and voting rights, the value of the one-third of one one-thousandth (i.e., 1/3000) interest in a Preferred Share purchasable upon exercise of each Right should approximate the value of one Common Share.

 
In the event that any person becomes an
Acquiring Person, unless the event causing the Designated Percentage threshold to be crossed and the Person to thereby become an Acquiring Person is a merger, acquisition or other business combination described in the next paragraph, 
 

2 

each holder of a Right, other than Rights beneficially owned by the Acquiring Person (which will thereafter be void), will thereafter have
the right to receive upon exercise that number of Common Shares having a market value of two times the exercise price of the Right on the terms and conditions set forth in the Rights Agreement. If the Company does not have authorized but unissued
Common Shares sufficient to satisfy such obligation to issue Common Shares, the Company is obligated to deliver upon payment of the exercise price of a Right an amount of cash or other securities equivalent in value to the Common Shares issuable
upon exercise of a Right. 
 
In the event that any
person or group becomes an Acquiring Person and the Company merges into or engages in certain other business combination transactions with an Acquiring Person, or 50% or more of its consolidated assets or earning power are sold to an Acquiring
Person, each holder of a Right, other than Rights beneficially owned by an Acquiring Person, will thereafter have the right to receive, upon the exercise thereof at the then current exercise price of the Right, that number of shares of common stock
of the acquiring company which at the time of such transaction will have a market value of two times the exercise price of the Right. 
 
At any time after any person becomes an Acquiring Person and prior to the acquisition by such person or group of 50% or more of the
outstanding Common Shares, the Board of Directors of the Company may exchange the Rights (other than Rights owned by such person or group which have become void), in whole or in part, at an exchange ratio of one Common Share, or one one-thousandth
of a Preferred Share (or of a share of a class or series of the Company’s preferred stock having equivalent rights, preferences and privileges), per Right (subject to adjustment). 
 
With certain exceptions, no adjustment in the Purchase Price will be required until cumulative adjustments
require an adjustment of at least 1% in such Purchase Price. No fractional Preferred Shares will be issued (other than fractions which are integral multiples of one one-thousandth of a Preferred Share or such other fraction as provided for by
adjustment provisions in the Rights Agreement, which may, at the election of the Company, be evidenced by depository receipts) and in lieu thereof, an adjustment in cash will be made based on the market price of the Preferred Shares on the last
trading day prior to the date of exercise. 
 
At
any time prior to such time as a person or group becomes an Acquiring Person, the Board of Directors of the Company may redeem, the Rights in whole, but not in part, at a price of $0.001 per Right (the “Redemption Price”). The redemption
of the Rights may be made effective at such time, on such basis and with such conditions as the Board of Directors in its sole discretion may establish. After the period for redemption of the Rights has expired, the Board may not amend the Rights
Agreement to extend the period for redemption of the Rights. Immediately upon any redemption of the Rights, the right to exercise the Rights will terminate and the only right of the holders of Rights will be to receive the Redemption Price.

 
The terms of the Rights may be amended by a
resolution of the Board of Directors without the consent of the holders of the Rights, except that from and after such time as any person or group becomes an Acquiring Person, no such amendment may adversely affect the interests of the holders of
the Rights (other than an Acquiring Person). 
 

3 

Until a Right is exercised, the holder thereof, as such, will have no rights as a
stockholder of the Company, including, without limitation, the right to vote or to receive dividends. 
 
A copy of the Rights Agreement has been filed with the Securities and Exchange Commission as an Exhibit to a Registration Statement on
Form 8-A/A filed February 18, 2003. A copy of the Rights Agreement is available free of charge from the Company. This summary description of the Rights does not purport to be complete and is qualified in its entirety by reference to the Rights
Agreement, which is hereby incorporated herein by reference. 
 

4Exhibit 4.1

This  Agreement (the "Agreement") is dated February 17, 2003 and is entered into
by  and  between    KAIRE  HOLDINGS,  INC.  (hereinafter "KAHI" or "CLIENT") and
George  Lefevre  and  Scott  Absher  (otherwise  known  as  NEOTACTIX,  INC.)
(hereinafter  "NTX").

1.    Conditions.  This  Agreement  will  not take effect, and NTX will have no
      -----------
      obligation  to  provide  any  service  whatsoever, unless and until CLIENT
      returns  a  signed  copy  of  this  Agreement  to  NTX  (either by mail or
      facsimile  copy). In addition, CLIENT shall be truthful with NTX in regard
      to  any  relevant  or material information provided by CLIENT, verbally or
      otherwise  which  refers,  relates,  or otherwise pertains to the CLIENT's
      business,  this  Agreement  or  any  other relevant transaction. Breach of
      either  of these conditions shall be considered a material breach and will
      automatically  grant  NTX  the  right  to terminate this Agreement and all
      moneys,  and  other forms of compensation, paid or owing as of the date of
      termination  by  NTX  shall  be  forfeited  without  further  notice. Upon
      execution  of this Agreement, CLIENT agrees to fully cooperate with NTX in
      carrying  out  the  purposes  of  this Agreement, keep NTX informed of any
      developments  of  importance  pertaining to CLIENT's business and abide by
      this  Agreement  in  its  entirety.

2.    SCOPE  AND  DUTIES.  During  the term of this Agreement, NTX will perform
      -------------------
      the  following  services  for  CLIENT:
      2.1   ADVICE  AND COUNSEL.  NTX will provide advice and counsel regarding
            -------------------
      CLIENT's  strategic  business  plans,  strategy  and  negotiations  with
      potential  business  strategic partnering, corporate planning and or other
      general  business  consulting  needs  as  expressed  by  CLIENT.
      2.2   MERGERS  AND  ACQUISITIONS.  NTX will provide assistance to CLIENT,
            --------------------------
      as mutually agreed, in identifying merger and / or acquisition candidates,
      assisting in any due diligence process, recommending transaction terms and
      providing  advice  and  assistance  during  negotiations,  as  needed.
      2.3   CLIENT  AND/OR  CLIENT'S  AFFILIATE TRANSACTION DUE DILIGENCE.  NTX
            -------------------------------------------------------------
      will  participate  and  assist  CLIENT in the due diligence process, where
      possible, on all proposed financial transactions affecting CLIENT of which
      NTX  is notified in writing in advance, including conducting investigation
      of  and  providing  advice  on  the  financial,  valuation and stock price
      implications  of  the  proposed  transaction(s).
      2.4   ANCILLARY  DOCUMENT  SERVICES.  If  necessary,  NTX will assist and
            -----------------------------
      cooperate  with  CLIENT in the development, editing and production of such
      documents as are reasonably necessary to assist in any transaction covered
      by  this  Agreement.  However,  this  Agreement  will  not  include  the
      preparation  or  procuring  of legal documents or those documents normally
      prepared  by  an  attorney.
      2.5   ADDITIONAL  DUTIES.  CLIENT  and  NTX  shall  mutually  agree,  in
            ------------------
      writing,  for  any  additional  duties  that NTX may provide to CLIENT for
      compensation  paid  or  payable  by  CLIENT under this Agreement. Although
      there  is  no  requirement  to  do so, such additional agreement(s) may be
      attached  hereto and made a part hereof by written amendments to be listed
      as  "Exhibits"  beginning  with "Exhibit A" and initialed by both parties.
      2.6   STANDARD  OF PERFORMANCE. NTX shall devote such time and efforts to
            ------------------------
      the  affairs  of  the  CLIENT  as  is  reasonably  necessary to render the
      services  contemplated by this Agreement. Any work or task of NTX provided
      for  herein which requires CLIENT to provide certain information to assist
      NTX  in  completion  of the work shall be excused (without effect upon any
      obligation  of  CLIENT)  until  such time as CLIENT has fully provided all
      information  and  cooperation  necessary for NTX to complete the work. The
      services  of  NTX shall not include the rendering of any legal opinions or
      the performance of any work that is in the ordinary purview of a certified
      public  accountant,  or  other licensed professional. NTX cannot guarantee
      results on behalf of CLIENT, but shall use commercially reasonable efforts
      in  providing the services listed above. If an interest is communicated to
      NTX  regarding  satisfying  all or part of CLIENT's business and corporate
      strategic  planning needs, NTX shall notify CLIENT and advise it as to the
      source  of  such  interest  and any terms and conditions of such interest.

                                        8
<PAGE>
      2.7   NON-GUARANTEE.  NTX  MAKES  NO  GUARANTEE  THAT NTX WILL BE ABLE TO
            -------------
      SUCCESSFULLY  LOCATE A MERGER OR ACQUISITION TARGET AND IN TURN CONSUMMATE
      A  MERGER  OR  ACQUISITION  TRANSACTION  FOR  CLIENT,  OR  TO SUCCESSFULLY
      COMPLETE  SUCH  A  TRANSACTION WITHIN CLIENT'S DESIRED TIME FRAME. NEITHER
      ANYTHING  IN THIS AGREEMENT TO THE CONTRARY NOR THE PAYMENT OF DEPOSITS TO
      NTX  BY  CLIENT  PURSUANT  TO FEE AGREEMENTS FOR SERVICES NOT CONTEMPLATED
      HEREIN  SHALL  BE  CONSTRUED  AS  ANY  SUCH  GUARANTEE.  ANY COMMENTS MADE
      REGARDING  POTENTIAL  TIME FRAMES OR ANYTHING THAT PERTAINS TO THE OUTCOME
      OF  CLIENT'S  NEEDS  ARE  EXPRESSIONS OF OPINION ONLY, AND FOR PURPOSES OF
      THIS  AGREEMENT  ARE  SPECIFICALLY  DISAVOWED.
3.    COMPENSATION  TO  NTX.
      ----------------------
      3.1   ISSUANCE  OF  SHARES FOR ENTERING INTO AGREEMENT.  As consideration
            ------------------------------------------------
      for  NTX  entering  into this Agreement, Client agrees to cause 40,000,000
      shares  of  its  common  stock, par value $.001 per share, to be issued in
      amounts of 20,000,000 shares to George R. Lefevre and 20,000,000 shares to
      Scott W. Absher, affiliates of NTX. When issued, said shares shall be free
      trading  shares,  registered  with  the  U.S.  Securities  and  Exchange
      Commission  on  its Form S-8 or similar registration. The registration and
      issuance  of  said  shares  shall  take  place  by  no  later than 15 days
      following  the  execution and delivery of this Agreement, and all costs in
      connection  therewith shall be borne by Client. In addition, Client hereby
      irrevocably  grants  to  NTX  an  Option to purchase any part or all of an
      aggregate  of 40,000,000 shares of its common stock. The purchase price of
      the  shares of common stock subject to the Option shall be $.001 per share
      without commission or other charge. The Option, or any exercisable portion
      thereof,  may  be  exercised  solely by delivery to the Client's corporate
      secretary or the corporate secretary's office during the twelve (12) month
      time  period  immediately following the date of this agreement, all of the
      following:
      (a)   Notice in writing signed by the Optionee or the other person then
            entitled to exercise the Option or portion thereof, stating that the
            Option or portion thereof is thereby exercised, and
      (b)   (i)   Full payment (in cash or by check) for the shares with respect
            to  which  such  Option  or  portion  thereof  is  exercised;  or
            (ii)  Shares of Common Stock owned by the Optionee duly endorsed for
            transfer  to the Company, or, shares of Common Stock issuable to the
            Optionee  upon  exercise  of the Option, with a Fair Market Value on
            the date of Option exercise equal to the aggregate purchase price of
            the  shares  with  respect to which the Option or portion thereof is
            exercised.

     NOTE:  NTX  SHALL  HAVE  NO  OBLIGATION  TO PERFORM ANY DUTIES PROVIDED FOR
     HEREIN IF PAYMENT [CASH AND/OR STOCK] IS NOT RECEIVED BY NTX WITHIN 15 DAYS
     OF  MUTUAL  EXECUTION  OF THIS AGREEMENT BY THE PARTIES. IN ADDITION, NTX'S
     OBLIGATIONS  UNDER  THIS  AGREEMENT SHALL BE SUSPENDED IF ANY PAYMENT OWING
     HEREUNDER  IS  MORE  THAN  FIFTEEN  (15)  DAYS DELINQUENT. FURTHERMORE, THE
     RECEIPT  OF  ANY  FEES  DUE TO NTX UPON EXECUTION OF THIS AGREEMENT ARE NOT
     CONTINGENT  UPON  ANY  PRIOR PERFORMANCE OF ANY DUTIES WHATSOEVER DESCRIBED
     WITHIN  THIS  AGREEMENT.

      3.2   FEES FOR MERGER/ACQUISITION.  In the event that NTX, assists CLIENT
            ---------------------------
      and  /  or  introduces  CLIENT (or a CLIENT affiliate) to any third party,
      merger partner(s) or joint venture(s) who then enters into a merger, joint
      venture  or  similar  agreement  with CLIENT or CLIENT's affiliate, CLIENT
      hereby  agrees to pay NTX advisory fees pursuant to the following schedule
      which  are  based on the aggregate amount of such merger, joint venture or
      similar  agreement  with  CLIENT  or CLIENT's affiliate. Advisory fees are
      deemed  earned  and  shall  be  due  and payable at the first close of the
      transaction,  however,  in  certain circumstances when payment of advisory
      fees at closing is not possible, within 24 hours after CLIENT has received

                                        9
<PAGE>
      the  proceeds  of  such  investment.  This  provision  shall  survive this
      Agreement for a period of one year after termination or expiration of this
      Agreement. In other words, the advisory fee shall be deemed earned and due
      and  payable  for  any  funding,  underwriting,  merger,  joint venture or
      similar transaction which first closes within a year of the termination or
      expiration  of  this Agreement as a result of an introduction as set forth
      above.

      MERGER/ACQUISITION.  For  a merger/acquisition entered into by CLIENT as a
      ------------------
      result  of  the  efforts  of, or an introduction by NTX during the term of
      this  Agreement, Client shall pay NTX, ten (10) percent of the total value
      of  the  transaction. For a merger/acquisition entered into by CLIENT as a
      result  of  the  efforts  of NTX and the introduction by CLIENT during the
      term  of  this  Agreement,  Client  shall pay NTX, ten (10) percent of the
      total value of the transaction. Such percentage(s) shall be paid to NTX in
      the  same  ratio  of cash and / or stock as the transaction within 30 days
      following  the  close  of  such  transaction.

      3.3    EXPENSES.  CLIENT  shall  reimburse  NTX  for  reasonable  expenses
      ---    --------
      incurred  in  performing  its duties pursuant to this Agreement (including
      printing,  postage, express mail, photo reproduction, travel, lodging, and
      long  distance  telephone  and facsimile charges); provided, however, that
      NTX  must receive prior written approval from CLIENT for any expenses over
      $  500.  Such  reimbursement  shall  be  payable within 7 seven days after
      CLIENT's  receipt  of  NTX  invoice  for  same.

      3.4    ADDITIONAL  FEES.  CLIENT  and  NTX  shall  mutually agree upon any
             ----------------
      additional fees that CLIENT may pay in the future for services rendered by
      NTX under this Agreement. Such additional agreement(s) may, although there
      is  no  requirement to do so, be attached hereto and made a part hereof as
      Exhibits  beginning  with  Exhibit  A.
4.    INDEMNIFICATION.  The  CLIENT  agrees to indemnify and hold harmless NTX,
      ---------------
      each  of  its  officers, directors, employees and shareholders against any
      and  all liability, loss and costs, expenses or damages, including but not
      limited  to,  any  and  all  expenses  whatsoever  reasonably  incurred in
      investigating, preparing or defending against any litigation, commenced or
      threatened,  or  any claim whatsoever or howsoever caused by reason of any
      injury  (whether  to  body,  property,  personal  or business character or
      reputation)  sustained by any person or to any person or property, arising
      out  of  any  act,  failure  to act, neglect, any untrue or alleged untrue
      statement  of  a  material  fact or failure to state a material fact which
      thereby  makes  a  statement  false  or  misleading,  or any breach of any
      material  representation,  warranty  or  covenant  by CLIENT or any of its
      agents, employees, or other representatives. Nothing herein is intended to
      nor  shall it relieve either party from liability for its own willful act,
      omission  or  negligence. All remedies provided by law, or in equity shall
      be  cumulative  and  not  in  the  alternative.
5.    CONFIDENTIALITY.
      ----------------
      5.1    NTX  and  CLIENT  each  agree  to  keep  confidential  and  provide
      reasonable  security  measures  to  keep  confidential  information  where
      release may be detrimental to their respective business interests. NTX and
      CLIENT  shall  each  require  their  employees,  agents, affiliates, other
      licensees,  and others who will have access to the information through NTX
      and  CLIENT  respectively,  to  first  enter  appropriate  non-disclosure
      Agreements requiring the confidentiality contemplated by this Agreement in
      perpetuity.
      5.2    NTX  will  not, either during its engagement by the CLIENT pursuant
      to  this  Agreement or at any time thereafter, disclose, use or make known
      for  its  or another's benefit any confidential information, knowledge, or
      data of the CLIENT or any of its affiliates in any way acquired or used by
      NTX  during  its  engagement  by  the  CLIENT.  Confidential  information,
      knowledge  or  data of the CLIENT and its affiliates shall not include any
      information  that  is,  or becomes generally available to the public other
      than  as  a  result  of  a  disclosure  by  NTX  or  its  representatives.
6.    MISCELLANEOUS  PROVISIONS.
      -------------------------
      6.1    AMENDMENT  AND  MODIFICATION.  This  Agreement  may  be  amended,
             ----------------------------
      modified  and  supplemented  only  by written agreement of NTX and CLIENT.
      6.2    ASSIGNMENT.  This  Agreement and all of the provisions hereof shall
             ----------
      be  binding  upon and inure to the benefit of the parties hereto and their
      respective  successors  and  permitted  assigns. The obligations of either

                                       10
<PAGE>
      party  hereunder cannot be assigned without the express written consent of
      the  other  party.
      6.3    GOVERNING LAW; VENUE.  This Agreement and the legal relations among
             --------------------
      the  parties  hereto shall be governed by and construed in accordance with
      the laws of the State of California, without regard to its conflict of law
      doctrine. CLIENT and NTX agree that if any action is instituted to enforce
      or  interpret  any provision of this Agreement, the jurisdiction and venue
      shall  be  Orange  County,  California.
      6.4    ATTORNEYS'  FEES  AND COSTS.  If any action is necessary to enforce
             ---------------------------
      and  collect  upon the terms of this Agreement, the prevailing party shall
      be  entitled  to  reasonable attorneys' fees and costs, in addition to any
      other  relief to which that party may be entitled. This provision shall be
      construed  as  applicable  to  the  entire  Agreement.
      6.5    SURVIVABILITY.   If  any part of this Agreement is found, or deemed
             -------------
      by a court of competent jurisdiction, to be invalid or unenforceable, that
      part  shall  be  severable  from  the  remainder  of  the  Agreement.
      7.    ARBITRATION.  ALL  DISPUTES,  CONTROVERSIES,  OR DIFFERENCES BETWEEN
            -----------
      CLIENT,  NTX  OR  ANY OF THEIR OFFICERS, DIRECTORS, LEGAL REPRESENTATIVES,
      ATTORNEYS,  ACCOUNTANTS,  AGENTS  OR  EMPLOYEES,  OR ANY CUSTOMER OR OTHER
      PERSON  OR  ENTITY,  ARISING  OUT OF, IN CONNECTION WITH OR AS A RESULT OF
      THIS  AGREEMENT, SHALL BE RESOLVED THROUGH ARBITRATION RATHER THAN THROUGH
      LITIGATION.  WITH  RESPECT  TO  THE  ARBITRATION  OF  ANY  DISPUTE,  THE
      UNDERSIGNED  HEREBY  ACKNOWLEDGE  AND  AGREE  THAT:

      A.    ARBITRATION  IS  FINAL  AND  BINDING  ON  THE  PARTIES;
      B.    THE  PARTIES  ARE  WAIVING  THEIR  RIGHT  TO  SEEK  REMEDY IN COURT,
            INCLUDING  THEIR  RIGHT  TO  JURY  TRIAL;
      C.    PRE-ARBITRATION  DISCOVERY  IS  GENERALLY MORE LIMITED AND DIFFERENT
            FROM  COURT  PROCEEDING;
      D.    THE  ARBITRATOR'S  AWARD IS NOT REQUIRED TO INCLUDE FACTUAL FINDINGS
            OR  LEGAL  REASONING  AND  ANY  PARTY'S  RIGHT  OF APPEAL OR TO SEEK
            MODIFICATION  OF  RULING  BY  THE  ARBITRATORS  IS STRICTLY LIMITED;
      E.    THIS  ARBITRATION  PROVISION IS SPECIFICALLY INTENDED TO INCLUDE ANY
            AND  ALL  STATUTORY  CLAIMS  WHICH  MIGHT  BE ASSERTED BY ANY PARTY;
      F.    EACH PARTY HEREBY AGREES TO SUBMIT THE DISPUTE FOR RESOLUTION TO THE
            AMERICAN  ARBITRATION  ASSOCIATION,  IN  ORANGE  COUNTY,  CALIFORNIA
            WITHIN FIVE (5) DAYS AFTER RECEIVING A WRITTEN REQUEST TO DO SO FROM
            THE  OTHER  PARTY;
      G.    IF  EITHER  PARTY  FAILS  TO  SUBMIT  THE  DISPUTE TO ARBITRATION ON
            REQUEST,  THEN  THE  REQUESTING  PARTY  MAY  COMMENCE AN ARBITRATION
            PROCEEDING,  BUT  IS  UNDER  NO  OBLIGATION  TO  DO  SO;
      H.    ANY  HEARING  SCHEDULED AFTER AN ARBITRATION IS INITIATED SHALL TAKE
            PLACE  IN  ORANGE  COUNTY,  CALIFORNIA;
      I.    IF EITHER PARTY SHALL INSTITUTE ANY COURT PROCEEDING IN AN EFFORT TO
            RESIST  ARBITRATION  AND BE UNSUCCESSFUL IN RESISTING ARBITRATION OR
            SHALL  UNSUCCESSFULLY  CONTEST  THE  JURISDICTION OF ANY ARBITRATION
            FORUM LOCATED IN ORANGE COUNTY, CALIFORNIA, OVER ANY MATTER WHICH IS
            THE  SUBJECT  OF  THIS  AGREEMENT,  THE  PREVAILING  PARTY  SHALL BE
            ENTITLED  TO  RECOVER  FROM  THE LOSING PARTY ITS LEGAL FEES AND ANY
            OUT-OF-POCKET  EXPENSES  INCURRED  IN CONNECTION WITH THE DEFENSE OF
            SUCH  LEGAL  PROCEEDING  OR  ITS  EFFORTS  TO  ENFORCE ITS RIGHTS TO
            ARBITRATION  AS  PROVIDED  FOR  HEREIN;
      J.    THE  PARTIES  SHALL  ACCEPT THE DECISION OF ANY AWARD AS BEING FINAL
            AND  CONCLUSIVE  AND  AGREE  TO  ABIDE  THEREBY;
      K.    ANY DECISION MAY BE FILED WITH ANY COURT AS A BASIS FOR JUDGMENT AND
            EXECUTION  FOR  COLLECTION.
8.    TERM/TERMINATION.  This  Agreement  is  an  agreement  for  the  term  of
      ----------------
      approximately three (3) months ending February 12, 2003.
9.    REGISTRATION  OF  SHARES.  NTX shall have standard piggyback registration
      ------------------------
      rights  (as  described  in  Section  3.2  herein)  of all shares issued in
      accordance  with this Agreement, which are not subject to registration per
      Section  3.0  et  seq.  herein.

                                       11
<PAGE>
  10. NON  CIRCUMVENTION.  In  and  for  valuable consideration, CLIENT hereby
      ------------------
      agrees  that  NTX  may introduce (whether by written, oral, data, or other
      form  of  communication)  CLIENT  to one or more opportunities, including,
      without  limitation,  natural  persons,  corporations,  limited  liability
      companies,  partnerships,  unincorporated businesses, sole proprietorships
      and  similar entities (hereinafter an "Opportunity" or ""Opportunities"").
      CLIENT  further  acknowledges  and agrees that the identity of the subject
      Opportunities,  and  all  other  information  concerning  an  Opportunity
      (including  without  limitation,  all  mailing  information, phone and fax
      numbers,  email  addresses  and  other  contact  information)  introduced
      hereunder  are  the  property of NTX, and shall be treated as confidential
      and proprietary information by CLIENT, it affiliates, officers, directors,
      shareholders,  employees, agents, representatives, successors and assigns.
      CLIENT  shall  not  use  such  information,  except  in the context of any
      arrangement  with  NTX in which NTX is directly and actively involved, and
      never  without  NTX's  prior  written approval. CLIENT further agrees that
      neither  it nor its employees, affiliates or assigns, shall enter into, or
      otherwise  arrange  (either  for  it/him/herself,  or  any other person or
      entity)  any  business  relationship,  contact  any  person regarding such
      Opportunity,  either  directly or indirectly, or any of its affiliates, or
      accept  any  compensation  or  advantage  in  relation to such Opportunity
      except  as directly though NTX, without the prior written approval of NTX.
      NTX  is  relying  on CLIENT's assent to these terms and their intent to be
      bound by the terms by evidence of their signature. Without CLIENT's signed
      assent to these terms, NTX would not introduce any Opportunity or disclose
      any  confidential  information  to  CLIENT as herein described.

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

KAIRE HOLDINGS, INC. ( KAHI )

Print  Name:         Mr.  Steve  Westlund

Sign  Name:          /s/  Steve  Westlund
                     ---------------------------

Title:               Chief  Executive  Officer

Date:
                     ---------------------------
Address:             8135  Clybourn  Ave.
                     Sun Valley,  CA 91352

NEOTACTIX,  INC.  (NTX)

Print  Name:         Scott  Absher

Sign  Name:          /s/  Scott  Absher
                     ---------------------------

Title:               Managing  Partner

Date:
                     ---------------------------
Address:             18662  MacArthur  Blvd.
                     2nd  Floor
                     Irvine,  CA  92612

                                       12
<PAGE>

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