Document:

Exhibit
10.1

 

AMYLIN PHARMACEUTICALS, INC.

 

AMENDED AND RESTATED 2001 EQUITY
INCENTIVE PLAN

 

1.             PURPOSES AND RELATIONSHIP WITH THE
COMPANY’S 2003 NON-EMPLOYEE DIRECTORS’ STOCK OPTION PLAN.

 

(a)           Eligible Stock Award
Recipients.  The persons eligible to
receive Stock Awards are the Employees, Directors and Consultants of the
Company and its Affiliates.

 

(b)           Available Stock Awards.  The purpose of the Plan is to provide a means
by which eligible recipients of Stock Awards may be given an opportunity to
benefit from increases in value of the Common Stock through the granting of the
following Stock Awards:  (i) Incentive
Stock Options, (ii) Nonstatutory Stock Options, and (iii) restricted
stock awards.

 

(c)           General Purpose.  The Company, by means of the Plan, seeks to
retain the services of the group of persons eligible to receive Stock Awards,
to secure and retain the services of new members of this group and to provide
incentives for such persons to exert maximum efforts for the success of the
Company and its Affiliates.

 

(d)           Relationship with the Company’s 2003 Non-Employee Directors’ Stock Option
Plan.  All Non-Employee
Director Options shall be deemed to have been issued under and pursuant to the
terms of the Plan and subject to all the terms and conditions of the Plan
except to the extent otherwise provided for in the Non-Employee Directors’
Plan.  In the event that any of the terms
or conditions of the Plan are inconsistent with or in conflict with any of the
terms or conditions of the Non-Employee Directors’ Plan or the Non-Employee
Director Options, the terms and conditions of the Non-Employee Directors’ Plan
or the Non-Employee Director Options shall control.

 

2.             DEFINITIONS.

 

(a)           “Affiliate”
means any parent corporation or subsidiary corporation of the Company, whether
now or hereafter existing, as those terms are defined in Sections 424(e) and
(f), respectively, of the Code.

 

(b)           “Annual
Meeting” means the annual meeting of the stockholders of the
Company.

 

(c)           “Board”
means the Board of Directors of the Company.

 

(d)           “Code”
means the Internal Revenue Code of 1986, as amended.

 

(e)           “Committee”
means a committee of one or more members of the Board appointed by the Board in
accordance with subsection 3(c).

 

(f)            “Common
Stock” means the common stock of the Company.

 

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(g)           “Company”
means Amylin Pharmaceuticals, Inc., a Delaware corporation.

 

(h)           “Consultant”
means any person, including an advisor, whether an individual or an entity, (i) engaged
by the Company or an Affiliate to render consulting or advisory services and
who is compensated for such services or (ii) who is a member of the Board
of Directors of an Affiliate and who is compensated for such services.  However, the term “Consultant” shall not
include Directors who are not compensated by the Company for their services as
Directors, and the payment of a director’s fee by the Company for services as a
Director shall not cause a Director to be considered a “Consultant” for
purposes of the Plan.

 

(i)            “Continuous
Service” means that the Participant’s service with the Company
or an Affiliate, whether as an Employee, Director or Consultant, is not
interrupted or terminated.  A Participant’s
Continuous Service shall not be deemed to have terminated by reason of a change
in the capacity in which such Participant renders service to the Company or an
Affiliate as an Employee, Consultant or Director or a change in the entity for
which such Participant renders such service, provided that there is otherwise
no interruption or termination of such Participant’s Continuous Service.  For example, a change in status from an
Employee of the Company to a Consultant of an Affiliate or a Director will not
constitute an interruption of Continuous Service.  The Board or the chief executive officer of
the Company, in that party’s sole discretion, may determine whether Continuous
Service shall be considered interrupted in the case of any leave of absence
approved by that party, including sick leave, military leave or any other
personal leave.

 

(j)            “Covered
Employee” means the chief executive officer and the four (4) other
highest compensated officers of the Company for whom total compensation is
required to be reported to stockholders under the Exchange Act, as determined
for purposes of Section 162(m) of the Code.

 

(k)           “Director”
means a member of the Board of Directors of the Company.

 

(l)            “Disability”
means the permanent and total disability of a person within the meaning of Section 22(e)(3) of
the Code.

 

(m)          “Employee”
means any person employed by the Company or an Affiliate.  A person shall not be deemed an Employee by
reason of such person’s service as a Director and/or payments of director’s
fees to such person.

 

(n)           “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(o)           “Fair Market
Value” means, as of any date, the value of the Common Stock
determined as follows:

 

(i)            If the Common
Stock is listed on any established stock exchange or traded on the Nasdaq
National Market or the Nasdaq SmallCap Market, the Fair Market Value of a share
of Common Stock shall be the closing sales price for such stock (or the closing
bid, if no sales were reported) as quoted on such exchange or market (or the
exchange or market with the greatest volume of trading in the Common Stock) on
the day of determination (or if the day of determination is not a market
trading day, the last market trading day prior to the day of 

 

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determination), as
reported in The Wall Street Journal  or
such other source as the Board deems reliable.

 

(ii)           In the absence of
such markets for the Common Stock, the Fair Market Value shall be determined in
good faith by the Board.

 

(p)           “Incentive
Stock Option” means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and
the regulations promulgated thereunder.

 

(q)           “Non-Employee
Director”  means a Director who either (i) is not a current
Employee or Officer of the Company or its parent or a subsidiary, does not
receive compensation (directly or indirectly) from the Company or its parent or
a subsidiary for services rendered as a consultant or in any capacity other
than as a Director (except for an amount as to which disclosure would not be
required under Item 404(a) of Regulation S-K promulgated pursuant to the
Securities Act (“Regulation S-K”)), does not possess an interest in any other
transaction as to which disclosure would be required under Item 404(a) of
Regulation S-K and is not engaged in a business relationship as to which
disclosure would be required under Item 404(b) of Regulation S-K; or (ii) is
otherwise considered a “non-employee director” for purposes of Rule 16b-3.

 

(r)           “Non-Employee Director
Option” means a nonstatutory stock option granted pursuant to the
Non-Employee Directors’ Plan.

 

(s)           “Non-Employee Directors’
Plan” means the Company’s 2003 Non-Employee Directors’ Stock
Option Plan.

 

(t)            “Nonstatutory
Stock Option” means an Option not intended to qualify as an
Incentive Stock Option.

 

(u)           “Officer”
means a person who is an officer of the Company within the meaning of Section 16
of the Exchange Act and the rules and regulations promulgated thereunder.

 

(v)            “Option”
means an Incentive Stock Option or a Nonstatutory Stock Option granted pursuant
to the Plan or a Non-Employee Director Option.

 

(w)           “Option
Agreement” means a written agreement between the Company and an
Optionholder evidencing the terms and conditions of an individual Option
grant.  Each Option Agreement shall be
subject to the terms and conditions of the Plan.

 

(x)           “Optionholder”
means a person to whom an Option is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Option.

 

(y)           “Outside
Director” means a Director who either (i) is not a current
employee of the Company or an “affiliated corporation” (within the meaning of
Treasury Regulations promulgated under Section 162(m) of the Code),
is not a former employee of the Company or an “affiliated corporation”
receiving compensation for prior services (other than benefits under a tax
qualified pension plan), was not an officer of the Company or an “affiliated
corporation” at any time and is not currently receiving direct or indirect
remuneration from the Company or an 

 

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“affiliated corporation”
for services in any capacity other than as a Director or (ii) is otherwise
considered an “outside director” for purposes of Section 162(m) of
the Code.

 

(z)           “Participant”
means a person to whom a Stock Award is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Stock Award.

 

(aa)         “Plan”
means this Amylin Pharmaceuticals, Inc. Amended and Restated 2001 Equity
Incentive Plan.

 

(bb)         “Rule 16b-3”
means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3,
as in effect from time to time.

 

(cc)         “Securities
Act” means the Securities Act of 1933, as amended.

 

(dd)         “Stock Award”
means any right granted under the Plan, including an Option and a restricted
stock award.

 

(ee)         “Stock Award
Agreement” means a written agreement between the Company and a
holder of a Stock Award evidencing the terms and conditions of an individual
Stock Award grant.  Each Stock Award
Agreement shall be subject to the terms and conditions of the Plan.

 

(ff)           “Ten Percent
Stockholder” means a person who owns (or is deemed to own
pursuant to Section 424(d) of the Code) stock possessing more than
ten percent (10%) of the total combined voting power of all classes of stock of
the Company or of any of its Affiliates.

 

3.             ADMINISTRATION.

 

(a)           Administration by
Board.  The Board shall administer
the Plan unless and until the Board delegates administration to a Committee, as
provided in subsection 3(c).

 

(b)           Powers of Board.  The Board shall have the power, subject to,
and within the limitations of, the express provisions of the Plan:

 

(i)            To determine from
time to time which of the persons eligible under the Plan shall be granted
Stock Awards; when and how each Stock Award shall be granted; what type or
combination of types of Stock Award shall be granted; the provisions of each
Stock Award granted (which need not be identical), including the time or times
when a person shall be permitted to receive Common Stock pursuant to a Stock
Award; and the number of shares of Common Stock with respect to which a Stock
Award shall be granted to each such person.

 

(ii)           To construe and
interpret the Plan and Stock Awards granted under it, and to establish, amend
and revoke rules and regulations for its administration.  The Board, in the exercise of this power, may
correct any defect, omission or inconsistency in the Plan or in any Stock Award
Agreement, in a manner and to the extent it shall deem necessary or expedient
to make the Plan fully effective.

 

(iii)         To amend the Plan or
a Stock Award as provided in Section 12.

 

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(iv)          Generally, to
exercise such powers and to perform such acts as the Board deems necessary or
expedient to promote the best interests of the Company which are not in
conflict with the provisions of the Plan.

 

(c)           Delegation
to Committee.

 

(i)            General.  The Board may delegate administration of the
Plan to a Committee or Committees of one (1) or more members of the Board,
and the term “Committee” shall apply to any person or persons to whom such
authority has been delegated.  If
administration is delegated to a Committee, the Committee shall have, in
connection with the administration of the Plan, the powers theretofore
possessed by the Board, including the power to delegate to a subcommittee any
of the administrative powers the Committee is authorized to exercise (and
references in this Plan to the Board shall thereafter be to the Committee or
subcommittee), subject, however, to such resolutions, not inconsistent with the
provisions of the Plan, as may be adopted from time to time by the Board.  The Board may abolish the Committee at any
time and revest in the Board the administration of the Plan.

 

(ii)           Committee Composition
when Common Stock is Publicly Traded. 
Notwithstanding any contrary provision of subparagraph 3(c)(i) of
this Plan, at such time as the Common Stock is publicly traded, in the
discretion of the Board, a Committee may consist solely of two or more Outside
Directors, in accordance with Section 162(m) of the Code, and/or
solely of two or more Non-Employee Directors, in accordance with Rule 16b-3.  Within the scope of such authority, the Board
or the Committee may (1) delegate to a committee of one or more members of
the Board who are not Outside Directors the authority to grant Stock Awards to
eligible persons who are either (a) not then Covered Employees and are not
expected to be Covered Employees at the time of recognition of income resulting
from such Stock Award or (b) not persons with respect to whom the Company
wishes to comply with Section 162(m) of the Code and/or (2) delegate
to a committee of one or more members of the Board who are not Non-Employee
Directors the authority to grant Stock Awards to eligible persons who are not
then subject to Section 16 of the Exchange Act.

 

(d)           Effect of Board’s Decision.  All determinations, interpretations and
constructions made by the Board in good faith shall not be subject to review by
any person and shall be final, binding and conclusive on all persons.

 

4.             SHARES SUBJECT TO THE PLAN.

 

(a)           Share Reserve.  Subject to the provisions of Section 11
relating to adjustments upon changes in Common Stock, an aggregate of twenty-five
million (25,000,000) shares of Common Stock shall be authorized for issuance
pursuant to Stock Awards; provided, however,
such aggregate number shall increase automatically without further Board action
or stockholder approval, as and to the extent that options to purchase Common
Stock issued under the Company’s 1991 Stock Option Plan (the “1991 Plan”)
expire, terminate or otherwise cancel prior to exercise following the date the
Plan is approved by the Board, by the number of shares underlying such expired,
terminated or canceled options issued under the 1991 Plan, subject to a maximum
increase of five million two hundred seventy-five thousand six hundred
eighty-nine (5,275,689) shares. 
Accordingly, subject to the provisions of Section 11 relating to
adjustments 

 

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upon changes in Common
Stock, the Common Stock that may be issued pursuant to Stock Awards shall not
exceed in the aggregate thirty  million two hundred
seventy-five thousand six hundred eighty-nine (30,275,689) shares of Common
Stock.  Effective as of April 18,
2008, subject to Section 4(b), the number of shares of Common Stock
available for issuance under the Plan shall be reduced by: (i) one (1) share
for each share of Common Stock issued pursuant to an Option under the Plan, and
(ii) two and twenty-one hundredths (2.21) of a share for each share of
Common Stock issued pursuant to a restricted stock award under the Plan.

 

(b)           Reversion of Shares to
the Share Reserve.  If any Stock
Award shall for any reason expire or otherwise terminate, in whole or in part,
without having been exercised in full, the shares of Common Stock not acquired
under such Stock Award shall revert to and again become available for issuance
under the Plan.  To the extent there is
issued a share of Common Stock pursuant to a Stock Award that counted as two
and twenty-one hundredths (2.21) of a share against the number of shares
available for issuance under the Plan pursuant to Section 4(a) and
such share of Common Stock again becomes available for issuance under the Plan
pursuant to this Section 4(b), then the number of shares of Common Stock
available for issuance under the Plan shall increase by two and twenty-one
hundredths (2.21) of a share.

 

(c)           Source of Shares.  The shares of Common Stock subject to the
Plan may be unissued shares or reacquired shares, bought on the market or
otherwise.

 

5.             ELIGIBILITY.

 

(a)           Eligibility for
Specific Stock Awards.  Incentive
Stock Options may be granted only to Employees. 
Stock Awards other than Incentive Stock Options may be granted to
Employees, Directors and Consultants.

 

(b)           Ten Percent
Stockholders.  A Ten Percent
Stockholder shall not be granted an Incentive Stock Option unless the exercise
price of such Option is at least one hundred ten percent (110%) of the Fair
Market Value of the Common Stock at the date of grant and the Option is not
exercisable after the expiration of five (5) years from the date of grant.

 

(c)           Section 162(m) Limitation.  Subject to the provisions of Section 11
relating to adjustments upon changes in the shares of Common Stock, no Employee
shall be eligible to be granted Options covering more than one million
(1,000,000) shares of Common Stock during any calendar year.

 

(d)           Consultants.  A Consultant shall not be eligible for
the grant of a Stock Award if, at the time of grant, a Form S-8
Registration Statement under the Securities Act (“Form S-8”) is not
available to register either the offer or the sale of the Company’s securities
to such Consultant because of the nature of the services that the Consultant is
providing to the Company, or because the Consultant is not a natural person, or
as otherwise provided by the rules governing the use of Form S-8, unless the Company determines both (i) that such grant (A) shall
be registered in another manner under the Securities Act (e.g.,
on a Form S-3 Registration Statement) or (B) does not require
registration under the Securities Act in order to comply with the requirements
of the Securities Act, if applicable, and (ii) that such grant complies
with the securities laws of all other relevant jurisdictions.

 

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6.             OPTION PROVISIONS.

 

Each Option shall be in such form and shall contain
such terms and conditions as the Board shall deem appropriate.  All Options shall be separately designated
Incentive Stock Options or Nonstatutory Stock Options at the time of grant,
and, if certificates are issued, a separate certificate or certificates will be
issued for shares of Common Stock purchased on exercise of each type of Option.  The provisions of separate Options need not
be identical, but each Option shall include (through incorporation of
provisions hereof by reference in the Option or otherwise) the substance of
each of the following provisions:

 

(a)           Term.  Subject to the provisions of subsection 5(b) regarding
the maximum term of Incentive Stock Options granted to Ten Percent
Stockholders, no Incentive Stock Option or Nonstatutory Stock Option shall be
exercisable after the expiration of seven (7) years from the date it was
granted.

 

(b)           Minimum Exercise Price
of an Option.  Subject to the
provisions of subsection 5(b) regarding the minimum exercise price of
Incentive Stock Options granted to Ten Percent Stockholders, the exercise price
of each Incentive Stock Option and Nonstatutory Stock Option shall be not less
than one hundred percent (100%) of the Fair Market Value of the Common Stock
subject to the Option on the date the Option is granted.  Notwithstanding the foregoing, an Option may
be granted with an exercise price lower than that set forth in the preceding
sentence if such Option is granted pursuant to an assumption or substitution
for another option in a manner satisfying the provisions of Section 424(a) of
the Code.(1)

 

(c)           Consideration.  The purchase price of Common Stock acquired
pursuant to an Option shall be paid, to the extent permitted by applicable
statutes and regulations, either (i) in cash at the time the Option is
exercised or (ii) at the discretion of the Board at the time of the grant
of the Option (or subsequently in the case of a Nonstatutory Stock Option) (1) by
delivery to the Company of other Common Stock, (2) according to a deferred
payment or other similar arrangement with the Optionholder or (3) in any
other form of legal consideration that may be acceptable to the Board.  Unless otherwise specifically provided in the
Option, the purchase price of Common Stock acquired pursuant to an Option that
is paid by delivery to the Company of other Common Stock acquired, directly or
indirectly from the Company, shall be paid only by shares of the Common Stock
of the Company that have been held for more than six (6) months (or such
longer or shorter period of time required to avoid a charge to earnings for
financial accounting purposes).  At any
time that the Company is incorporated in Delaware, payment of the Common Stock’s
“par value,” as defined in the Delaware General Corporation Law, shall not be
made by deferred payment.

 

 

(1) Code
Section 424(a) applies to the substitution of a new option for an old
option, or an assumption of an old option, by an employer corporation or a
parent or subsidiary of such corporation, by reason of a corporate merger,
consolidation, acquisition of property or stock, separation, reorganization, or
liquidation if (1) the excess of the aggregate fair market value of the
shares subject to the option immediately after the substitution or assumption
over the aggregate option price of such shares is not more than the excess of
the aggregate fair market value of all shares subject to the options
immediately before such substitution or assumption over the aggregate option
price of such shares; and (2) the new option or the assumption of the old
option does not give the employee additional benefits which he or she did not
have under the old option.

 

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In the case of any deferred payment arrangement,
interest shall be compounded at least annually and shall be charged at the
market rate of interest necessary to avoid a charge to earnings for financial
accounting purposes.

 

(d)           Transferability of an
Incentive Stock Option.  Pursuant to
provisions of the Code, an Incentive Stock Option shall not be transferable
except by will or by the laws of descent and distribution and shall be
exercisable during the lifetime of the Optionholder only by the
Optionholder.  Notwithstanding the
foregoing, in the event of the Optionholder’s divorce, upon receipt of proof of
such divorce, the Board in its discretion may, but shall have no obligation to,
amend the terms of an Incentive Stock Option to provide for either (i) the
transfer of the beneficial ownership of all or a portion of the Incentive Stock
Option to the Optionholder’s former spouse, or (ii) the transfer of all or
a portion of the Incentive Stock Option, provided that the transferred Option
shall be deemed a Nonstatutory Stock Option to the extent required by
applicable law.  In addition to the
foregoing, the Optionholder may, by delivering written notice to the Company,
in a form satisfactory to the Company, designate a third party who, in the
event of the death of the Optionholder, shall thereafter be entitled to
exercise the Option.

 

(e)           Transferability of a
Nonstatutory Stock Option.  A
Nonstatutory Stock Option shall be transferable to the extent provided in the
Option Agreement.  If the Nonstatutory
Stock Option does not provide for transferability, then the Nonstatutory Stock
Option shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the Optionholder
only by the Optionholder.  Notwithstanding
the foregoing, in the event of the Optionholder’s divorce or legal separation, all
or a portion of the Nonstatutory Stock Option shall be transferable upon
receipt of proof of such divorce or legal separation and in accordance with the
terms of such divorce or legal separation. 
In addition to the foregoing, the Optionholder may, by delivering
written notice to the Company, in a form satisfactory to the Company, designate
a third party who, in the event of the death of the Optionholder, shall
thereafter be entitled to exercise the Option.

 

(f)            Vesting Generally.  The total number of shares of Common Stock
subject to an Option may, but need not, vest and therefore become exercisable
in periodic installments that may, but need not, be equal.  The Option may be subject to such other terms
and conditions on the time or times when it may be exercised (which may be
based on performance or other criteria) as the Board may deem appropriate.  The vesting provisions of individual Options
may vary.  The provisions of this
subsection 6(f) are subject to any Option provisions governing the minimum
number of shares of Common Stock as to which an Option may be exercised.

 

(g)           Termination of
Continuous Service.  In the event an
Optionholder’s Continuous Service terminates (other than upon the Optionholder’s
death or Disability), the Optionholder may exercise his or her Option (to the
extent that the Optionholder was entitled to exercise such Option as of the
date of termination) but only within such period of time as is determined by
the Board (but in no event later than the expiration of the term of such Option
as set forth in the Option Agreement). 
In the case of an Incentive Stock Option, to the extent the Board
intends that the Option remain an Incentive Stock Option, such period of time
shall not exceed three (3) months from the date of termination.  If, after termination, the Optionholder does
not exercise his or her Option within the time specified in the Option Agreement,
the Option shall terminate.

 

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(h)           Extension of
Termination Date.  An Optionholder’s
Option Agreement may also provide that if the exercise of the Option following
the termination of the Optionholder’s Continuous Service (other than upon the
Optionholder’s death or Disability) would be prohibited at any time solely
because the issuance of shares of Common Stock would violate the registration
requirements under the Securities Act, then the Option shall terminate on the
earlier of (i) the expiration of the term of the Option set forth in the
Option Agreement or (ii) the expiration of a period of three (3) months
after the termination of the Optionholder’s Continuous Service during which the
exercise of the Option would not be in violation of such registration
requirements.

 

(i)            Disability of
Optionholder.  In the event that an
Optionholder’s Continuous Service terminates as a result of the Optionholder’s
Disability, the Optionholder may exercise his or her Option (to the extent that
the Optionholder was entitled to exercise such Option as of the date of
termination), but only within such period of time ending on the earlier of (i) the
date twelve (12) months following such termination (or such longer or shorter
period specified in the Option Agreement) or (ii) the expiration of the
term of the Option as set forth in the Option Agreement.  If, after termination, the Optionholder does
not exercise his or her Option within the time specified herein, the Option
shall terminate.

 

(j)            Death of Optionholder.  In the event (i) an Optionholder’s
Continuous Service terminates as a result of the Optionholder’s death or (ii) the
Optionholder dies within the period (if any) specified in the Option Agreement
after the termination of the Optionholder’s Continuous Service for a reason
other than death, then the Option may be exercised (to the extent the
Optionholder was entitled to exercise such Option as of the date of death) by
the Optionholder’s estate, by a person who acquired the right to exercise the
Option by bequest or inheritance or by a person designated to exercise the
Option upon the Optionholder’s death pursuant to subsection 6(d) or 6(e),
but only within the period ending on the earlier of (1) the date twelve
(12) months following the date of death (or such longer or shorter period
specified in the Option Agreement) or (2) the expiration of the term of
such Option as set forth in the Option Agreement.  If, after death, the Option is not exercised
within the time specified herein, the Option shall terminate.

 

(k)           Early Exercise.  The Option may, but need not, include a
provision whereby the Optionholder may elect at any time before the
Optionholder’s Continuous Service terminates to exercise the Option as to any
part or all of the shares of Common Stock subject to the Option prior to the
full vesting of the Option.  Any unvested
shares of Common Stock so purchased may be subject to a repurchase option in
favor of the Company or to any other restriction the Board determines to be
appropriate.

 

7.             PROVISIONS OF RESTRICTED STOCK AWARDS.

 

Each restricted stock award
agreement shall be in such form and shall contain such terms and conditions as
the Board shall deem appropriate.  The
terms and conditions of the restricted stock award agreements may change from
time to time, and the terms and conditions of separate restricted stock award
agreements need not be identical, but each restricted stock award agreement
shall include (through incorporation of provisions hereof by reference in the
agreement or otherwise) the substance of each of the following provisions:

 

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(a)           Consideration.  A restricted stock award may be granted in
consideration for past or future services rendered to the Company or an
Affiliate for its benefit.

 

(b)           Vesting.  Shares of Common Stock acquired under the
restricted stock award agreement may, but need not, be subject to a share
reacquisition option in favor of the Company in accordance with a vesting
schedule to be determined by the Board.

 

(c)           Termination of
Participant’s Continuous Service.  In
the event a Participant’s Continuous Service terminates, the Company may
reacquire any or all of the shares of Common Stock held by the Participant
which have not vested as of the date of termination under the terms of the
restricted stock award agreement.

 

(d)           Transferability.  Shares of Common Stock issued pursuant to the
restricted stock award shall be transferable by the Participant only upon such
terms and conditions as are set forth in the restricted stock award agreement,
as the Board shall determine in its discretion, so long as Common Stock awarded
under the restricted stock award agreement remains subject to the Company’s
reacquisition right under the terms of the restricted stock award agreement.

 

8.             COVENANTS OF THE COMPANY.

 

(a)           Availability of Shares.  During the terms of the Stock Awards, the
Company shall keep available at all times the number of shares of Common Stock
required to satisfy such Stock Awards.

 

(b)           Securities Law
Compliance.  The Company shall seek
to obtain from each regulatory commission or agency having jurisdiction over
the Plan such authority as may be required to grant Stock Awards and to issue
and sell shares of Common Stock upon exercise of the Stock Awards; provided,
however, that this undertaking shall not require the Company to register under
the Securities Act the Plan, the Non-Employee Directors’ Plan, any Stock Award
or any Common Stock issued or issuable pursuant to any such Stock Award.  If, after reasonable efforts, the Company is
unable to obtain from any such regulatory commission or agency the authority
which counsel for the Company deems necessary for the lawful issuance and sale
of Common Stock under the Plan, the Company shall be relieved from any
liability for failure to issue and sell Common Stock upon exercise of such
Stock Awards unless and until such authority is obtained.

 

(c)           Cancellation and Re-Grant of Options.  The Board shall not have the
authority to effect, at any time, without stockholder approval, either (1) the
repricing of any outstanding Options under the Plan and/or (2) the
cancellation of any outstanding Options under the Plan and the grant in
substitution therefor of new Options under the Plan covering the same or
different numbers of shares of Common Stock.

 

9.             USE OF PROCEEDS FROM STOCK.

 

Proceeds from the sale of Common Stock pursuant to
Stock Awards shall constitute general funds of the Company.

 

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10.          MISCELLANEOUS.

 

(a)           Acceleration of
Exercisability and Vesting.  The
Board shall have the power to accelerate the time at which a Stock Award may
first be exercised or the time during which a Stock Award or any part thereof
will vest in accordance with the Plan, notwithstanding the provisions in the
Stock Award stating the time at which it may first be exercised or the time
during which it will vest.

 

(b)           Stockholder Rights.  No Participant shall be deemed to be the
holder of, or to have any of the rights of a holder with respect to, any shares
of Common Stock subject to such Stock Award unless and until such Participant
has satisfied all requirements for exercise of the Stock Award pursuant to its
terms.

 

(c)           No Employment or other
Service Rights.  Nothing in the Plan
or any instrument executed or Stock Award granted pursuant thereto shall confer
upon any Participant any right to continue to serve the Company or an Affiliate
in the capacity in effect at the time the Stock Award was granted or shall
affect the right of the Company or an Affiliate to terminate (i) the
employment of an Employee with or without notice and with or without cause, (ii) the
service of a Consultant pursuant to the terms of such Consultant’s agreement
with the Company or an Affiliate or (iii) the service of a Director
pursuant to the Bylaws of the Company or an Affiliate, and any applicable
provisions of the corporate law of the state in which the Company or the
Affiliate is incorporated, as the case may be.

 

(d)           Incentive Stock Option
$100,000 Limitation.  To the extent
that the aggregate Fair Market Value (determined at the time of grant) of
Common Stock with respect to which Incentive Stock Options are exercisable for
the first time by any Optionholder during any calendar year (under all plans of
the Company and its Affiliates) exceeds one hundred thousand dollars
($100,000), the Options or portions thereof which exceed such limit (according
to the order in which they were granted) shall be treated as Nonstatutory Stock
Options.

 

(e)           Investment Assurances.  The Company may require a Participant, as a
condition of exercising or acquiring Common Stock under any Stock Award, (i) to
give written assurances satisfactory to the Company as to the Participant’s
knowledge and experience in financial and business matters and/or to employ a
purchaser representative reasonably satisfactory to the Company who is
knowledgeable and experienced in financial and business matters and that he or
she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Stock Award; and (ii) to
give written assurances satisfactory to the Company stating that the
Participant is acquiring Common Stock subject to the Stock Award for the
Participant’s own account and not with any present intention of selling or
otherwise distributing the Common Stock. 
The foregoing requirements, and any assurances given pursuant to such
requirements, shall be inoperative if (1) the issuance of the shares of
Common Stock upon the exercise or acquisition of Common Stock under the Stock
Award has been registered under a then currently effective registration
statement under the Securities Act or (2) as to any particular
requirement, a determination is made by counsel for the Company that such
requirement need not be met in the circumstances under the then applicable
securities laws.  The Company may, upon
advice of counsel to the Company, place legends on stock certificates issued
under the Plan as such counsel deems necessary or appropriate in order to
comply with 

 

11

 

applicable securities
laws, including, but not limited to, legends restricting the transfer of the
Common Stock.

 

(f)            Withholding
Obligations.  To the extent provided
by the terms of a Stock Award Agreement, the Participant may satisfy any
federal, state or local tax withholding obligation relating to the exercise or
acquisition of Common Stock under a Stock Award by any of the following means
(in addition to the Company’s right to withhold from any compensation paid to
the Participant by the Company) or by a combination of such means:  (i) tendering a cash payment; (ii) authorizing
the Company to withhold shares of Common Stock from the shares of Common Stock
otherwise issuable to the Participant as a result of the exercise or
acquisition of Common Stock under the Stock Award, provided, however, that no
shares of Common Stock are withheld with a value exceeding the minimum amount
of tax required to be withheld by law; or (iii) delivering to the Company
owned and unencumbered shares of Common Stock.

 

(g)           Transferability of Stock
Awards for Value or Consideration. 
Notwithstanding anything to the contrary set forth herein, Participants
may not transfer Stock Awards for value or consideration pursuant to the
provisions of subsections 6(d), 6(e) or 7(d) of the Plan without the
prior approval of the Company’s stockholders.

 

11.          ADJUSTMENTS UPON CHANGES IN STOCK.

 

(a)           Capitalization
Adjustments.  If any change is made
in the Common Stock subject to the Plan, or subject to any Stock Award, without
the receipt of consideration by the Company (through merger, consolidation,
reorganization, recapitalization, reincorporation, stock dividend, dividend in
property other than cash, stock split, liquidating dividend, combination of
shares, exchange of shares, change in corporate structure or other transaction
not involving the receipt of consideration by the Company), the Plan will be
appropriately adjusted in the class(es) and maximum number of securities
subject to the Plan pursuant to subsection 4(a) and the maximum number of
securities subject to Option grants to any Employee pursuant to subsection 5(c),
and the outstanding Stock Awards will be appropriately adjusted in the
class(es) and number of securities and price per share of Common Stock subject
to such outstanding Stock Awards.  The
Board shall make such adjustments, and its determination shall be final,
binding and conclusive.  (The conversion
of any convertible securities of the Company shall not be treated as a
transaction “without receipt of consideration” by the Company.)

 

(b)           Dissolution or
Liquidation.  In the event of a
dissolution or liquidation of the Company, then all outstanding Stock Awards
shall terminate immediately prior to such event.

 

(c)           Asset Sale, Merger,
Consolidation or Reverse Merger.  In
the event of (i) a sale, lease or other disposition of all or
substantially all of the assets of the Company, (ii) a merger or
consolidation in which the Company is not the surviving corporation or (iii) a
reverse merger in which the Company is the surviving corporation but the shares
of Common Stock outstanding immediately preceding the merger are converted by
virtue of the merger into other property, whether in the form of securities,
cash or otherwise (individually, a “Corporate Transaction”), then any surviving
corporation or acquiring corporation shall assume any Stock Awards outstanding
under the Plan or shall substitute similar stock awards (including an award to
acquire the same consideration paid to the stockholders in the Corporate
Transaction for those 

 

12

 

outstanding under the
Plan).  In the event any surviving
corporation or acquiring corporation refuses to assume such Stock Awards or to
substitute similar stock awards for those outstanding under the Plan, then with
respect to Stock Awards held by Participants whose Continuous Service has not
terminated, the vesting of such Stock Awards (and, if applicable, the time during
which such Stock Awards may be exercised) shall be accelerated in full, and the
Stock Awards shall terminate if not exercised (if applicable) at or prior to
the Corporate Transaction.  With respect
to any other Stock Awards outstanding under the Plan, such Stock Awards shall
terminate if not exercised (if applicable) prior to the Corporate Transaction.

 

12.          AMENDMENT OF THE PLAN AND STOCK AWARDS.

 

(a)           Amendment of Plan.  The Board at any time, and from time to time,
may amend the Plan.  However, except as
provided in Section 11 relating to adjustments upon changes in Common
Stock, no amendment shall be effective unless approved by the stockholders of
the Company to the extent stockholder approval is necessary to satisfy the
requirements of Section 422 of the Code, Rule 16b-3 or any Nasdaq or
securities exchange listing requirements.

 

(b)           Stockholder Approval.  The Board may, in its sole discretion, submit
any other amendment to the Plan for stockholder approval, including, but not
limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of
the Code and the regulations thereunder regarding the exclusion of
performance-based compensation from the limit on corporate deductibility of
compensation paid to certain executive officers.

 

(c)           Contemplated
Amendments.  It is expressly
contemplated that the Board may amend the Plan in any respect the Board deems
necessary or advisable to provide eligible Employees with the maximum benefits
provided or to be provided under the provisions of the Code and the regulations
promulgated thereunder relating to Incentive Stock Options and/or to bring the
Plan and/or Incentive Stock Options granted under it into compliance therewith.

 

(d)           No Impairment of
Rights.  Rights under any Stock Award
granted before amendment of the Plan shall not be impaired by any amendment of
the Plan unless (i) the Company requests the consent of the Participant
and (ii) the Participant consents in writing.

 

(e)           Amendment of Stock
Awards.  Subject to the restrictions
of subsection 8(c), the Board at any time, and from time to time, may amend the
terms of any one or more Stock Awards; provided, however, that the rights under
any Stock Award shall not be impaired by any such amendment unless (i) the
Company requests the consent of the Participant and (ii) the Participant
consents in writing.

 

13.          TERMINATION OR SUSPENSION OF THE PLAN.

 

(a)           Plan Term.  The Board may suspend or terminate the Plan
at any time.  Unless sooner terminated,
the Plan shall terminate on the day before the tenth (10th) anniversary of the
date the Plan is adopted by the Board or approved by the stockholders of the
Company, whichever is earlier.  No Stock
Awards may be granted under the Plan while the Plan is suspended or after it is
terminated.

 

13

 

(b)           No Impairment of
Rights.  Suspension or termination of
the Plan shall not impair rights and obligations under any Stock Award granted
while the Plan is in effect except with the written consent of the Participant.

 

14.          EFFECTIVE DATE OF PLAN.

 

The Plan shall become effective as determined by the
Board, but no Stock Award shall be exercised (or, in the case of a restricted
stock award, shall be granted) unless and until the Plan has been approved by
the stockholders of the Company, which approval shall be within twelve (12)
months before or after the date the Plan is adopted by the Board.

 

15.          CHOICE OF LAW.

 

The law of the State of California shall govern all
questions concerning the construction, validity and interpretation of this
Plan, without regard to such state’s conflict of laws rules.

 

14Exhibit 4.1

 

FIRST AMENDED
AND RESTATED RIGHTS AGREEMENT

 

CIBER, INC.

 

AND

 

WELLS FARGO
BANK, NATIONAL ASSOCIATION

 

AS RIGHTS
AGENT

 

DATED AS OF MAY 2,
2008

 

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.

  	
   

  	
  CERTAIN DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
   

  	
  APPOINTMENT OF
  RIGHTS AGENT

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
   

  	
  ISSUE OF RIGHTS
  CERTIFICATES

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
   

  	
  FORM OF RIGHTS
  CERTIFICATES

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
   

  	
  COUNTERSIGNATURE
  AND REGISTRATION

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
   

  	
  TRANSFER, SPLIT UP,
  COMBINATION AND EXCHANGE OF RIGHTS CERTIFICATES; MUTILATED, DESTROYED, LOST
  OR STOLEN RIGHTS CERTIFICATES

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
   

  	
  EXERCISE OF RIGHTS,
  PURCHASE PRICE; EXPIRATION DATE OF RIGHTS

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
   

  	
  CANCELLATION AND
  DESTRUCTION OF RIGHTS CERTIFICATES

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
   

  	
  RESERVATION AND
  AVAILABILITY OF CAPITAL STOCK

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
   

  	
  PREFERRED SHARES
  RECORD DATE

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
   

  	
  ADJUSTMENT OF
  PURCHASE PRICE, NUMBER AND KIND OF SHARES OR NUMBER OF RIGHTS

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
   

  	
  CERTIFICATE OF
  ADJUSTED PURCHASE PRICE OR NUMBER OF SHARES

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 13.

  	
   

  	
  CONSOLIDATION,
  MERGER OR SALE OR TRANSFER OF ASSETS, CASH FLOW OR EARNINGS POWER

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 14.

  	
   

  	
  FRACTIONAL RIGHTS
  AND FRACTIONAL SHARES

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 15.

  	
   

  	
  RIGHTS OF ACTION

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 16.

  	
   

  	
  AGREEMENT OF RIGHTS
  HOLDERS

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 17.

  	
   

  	
  RIGHTS CERTIFICATE
  HOLDER NOT DEEMED A STOCKHOLDER

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 18.

  	
   

  	
  CONCERNING THE
  RIGHTS AGENT

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 19.

  	
   

  	
  MERGER OR
  CONSOLIDATION OR CHANGE OF NAME OF RIGHTS AGENT

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 20.

  	
   

  	
  DUTIES OF RIGHTS
  AGENT

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 21.

  	
   

  	
  CHANGE OF RIGHTS
  AGENT

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 22.

  	
   

  	
  ISSUANCE OF NEW
  RIGHTS CERTIFICATES

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 23.

  	
   

  	
  REDEMPTION

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 24.

  	
   

  	
  EXCHANGE

  	
   

  	
  33

  

 

i

 

	
  SECTION 25.

  	
   

  	
  NOTICE OF CERTAIN
  EVENTS

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 26.

  	
   

  	
  NOTICES

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 27.

  	
   

  	
  SUPPLEMENTS AND
  AMENDMENTS

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 28.

  	
   

  	
  SUCCESSORS

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 29.

  	
   

  	
  BENEFITS OF THIS
  AGREEMENT

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 30.

  	
   

  	
  SEVERABILITY

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 31.

  	
   

  	
  GOVERNING LAW

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 32.

  	
   

  	
  COUNTERPARTS

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 33.

  	
   

  	
  DESCRIPTIVE
  HEADINGS

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 34.

  	
   

  	
  DETERMINATIONS AND
  ACTIONS BY THE BOARD OF DIRECTORS, ETC

  	
   

  	
  37

  

 

ii

 

FIRST AMENDED
AND RESTATED RIGHTS AGREEMENT

 

This FIRST AMENDED AND RESTATED RIGHTS
AGREEMENT (the “Agreement”), dated as of May 2, 2008, between CIBER, Inc.,
a Delaware corporation (the “Company”), and Wells Fargo Bank, National
Association, a national banking association, as Rights Agent (the “Rights
Agent”).

 

WHEREAS, the Company and the Rights Agent (as
successor Rights Agent to UMB Bank, N.A.) entered into a Rights Agreement dated
as of August 31, 1998 (the “1998 Rights Agreement”);

 

WHEREAS, in connection with the 1998 Rights
Agreement, the Board of Directors of the Company authorized and declared a
dividend of one preferred stock purchase right (a “Right”) for each
Common Share (as defined below) of the Company outstanding as of the Close of
Business (as defined below) on September 21, 1998 (the “Record Date”),
each Right representing the right to purchase one one-thousandth (subject to
adjustment) of a Preferred Share (as defined below), upon the terms and subject
to the conditions set forth in the 1998 Rights Agreement, and further
authorized and directed the issuance of one Right (subject to adjustment as
provided in the 1998 Rights Agreement) with respect to each Common Share that
shall become outstanding between the Record Date and the earliest of the Distribution
Date, the Redemption Date and the Final Expiration Date (as such terms are
defined below); provided, however, that Rights may be issued with
respect to Common Shares that shall become outstanding after the Distribution
Date and prior to the Redemption Date and the Final Expiration Date in
accordance with Section 22;

 

WHEREAS, pursuant to a resolution, duly
adopted on April 29, 2008, the Board of Directors has adopted and
authorized an amendment and restatement of the 1998 Rights Agreement, in the
form of this Agreement, so that, among other things, (i) the Final
Expiration Date shall be extended until May 2, 2018, (ii) each Right
shall represent the right to purchase one one-thousandth (subject to
adjustment) of a Preferred Share, upon the terms and subject to the conditions
herein set forth, and (iii) the Purchase Price (as defined below) shall be
set at $37.00 for each one one-thousandth of a Preferred Share; and

 

WHEREAS, the Board of Directors has resolved
and determined that the amendments set forth in this Agreement are in the best
interests of the Company and its stockholders and are desirable and consistent
with, and for the purposes of fulfilling, the objectives of the Board of
Directors in connection with the adoption of the 1998 Rights Agreement.

 

In consideration of the premises and the
mutual agreements herein set forth, the undersigned parties hereby agree as
follows:

 

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

 

(a)                                  “1998
Rights Agreement” shall have the meaning set forth in the Recitals.

 

 

(b)                                 “Acquiring
Person” shall mean any Person who or which, together with its Affiliates
and Associates, shall be the Beneficial Owner of 15% or more of the Common
Shares then outstanding, but shall not include an Exempt Person.  Notwithstanding anything in this definition
of “Acquiring Person” to the contrary: (i) 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 divests himself or
itself as promptly as practicable of beneficial ownership of a sufficient
number of Common Shares so that such Person would no longer be an Acquiring
Person, then such Person shall not be deemed to be or have become an “Acquiring
Person” for any purposes of this Agreement, (ii) 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 to 15% or more
of the Common Shares then outstanding; provided, however, that if
a Person shall become the Beneficial Owner of 15% or more of the Common Shares
then outstanding by reason of such share acquisitions by the Company and
thereafter becomes the Beneficial Owner of any additional Common Shares, other
than pursuant to a stock dividend or stock split, then such Person shall be
deemed to be an “Acquiring Person” and (iii) prior to the time such Person
would otherwise become an Acquiring Person under this Agreement, the Board of
Directors of the Company may exempt any such Person from being treated as an
Acquiring Person under this Agreement and the Board of Directors of the Company
may make such exemption subject to such conditions, if any, which the Board of
Directors may determine.

 

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

 

(d)                                 “Affiliate”
and “Associate” shall have the respective meanings ascribed to such
terms in Rule 12b-2 of the General Rules and Regulations under the
Exchange Act, as in effect on the date of this Agreement.

 

(e)                                  “Agreement”
shall have the meaning set forth in the Recitals.

 

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

 

(i)                                     which
such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has the right to acquire (whether such right is exercisable
immediately or only after the passage of time) pursuant to any agreement,
arrangement or understanding (whether or not in writing), or upon the exercise
of conversion rights, exchange rights, other rights (other than these Rights),
warrants or options, or otherwise; provided, however, that a
Person shall not be deemed the “Beneficial Owner” of, or to “beneficially own,”
(A) securities tendered pursuant to a tender or exchange offer made by or
on behalf of such Person or any of such Person’s Affiliates or Associates until
such tendered securities are accepted for purchase or exchange, (B) securities
issuable upon exercise of Rights at any time prior to the occurrence of a
Triggering Event, or (C) securities issuable upon exercise of Rights from
and after the occurrence of a Triggering Event which Rights were acquired by
such Person or any of such Person’s Affiliates or Associates prior to the
Distribution Date or pursuant to Section 3(a) or 

 

2

 

Section 22
hereof (the “Original Rights”) or pursuant to Section 11(i) hereof
in connection with an adjustment made with respect to any Original Rights;

 

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

 

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

 

provided, however, that nothing in this
paragraph (f) shall cause a Person engaged in business as an underwriter
of securities to be the “Beneficial Owner” of, or to “beneficially own,” any
securities acquired through such Person’s participation in good faith in a firm
commitment underwriting until the expiration of forty days after the date of
such acquisition; provided further, however, that no Person who
is an officer, director or employee of the Company or any Subsidiary of the
Company shall be deemed, solely by reason of such Person’s status or authority
as such, to be the “Beneficial Owner” of, or to “beneficially own,” any
securities that are “beneficially owned” (as defined in this paragraph (c)),
including, without limitation, in a fiduciary capacity, by the Company or any
Subsidiary of the Company, or by any other such officer, director or employee
of the Company or any Subsidiary of the Company.

 

(g)                                 “Business
Day” shall mean any day other than a Saturday, a Sunday, or a day on which
banking institutions in Denver, Colorado are authorized or obligated by law or
executive order to close.

 

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

 

(i)                                     “Common
Shares” when used with reference to the Company shall mean shares of Common
Stock of the Company. “Common Shares” when used with reference to any
Person other than the Company shall mean the capital stock (or, in the case of
an unincorporated entity, the equivalent equity interest) with the greatest
voting power of such other Person or, if 

 

3

 

such other Person is a
subsidiary of another Person, the Person or Persons which ultimately control
such first-mentioned Person.

 

(j)                                     “Common
Stock” shall mean the common stock, par value $.01 per share, of the Company.

 

(k)                                  “Company”
shall have the meaning set forth in the Recitals.

 

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

 

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

 

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

 

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

 

(p)                                 “Exempt
Person” shall mean any Grandfathered Person, the Company, any Subsidiary of
the Company, any employee benefit plan of the Company or of any Subsidiary of
the Company or any entity or trustee holding Common Shares for or pursuant to
the terms of any such plan or for the purpose of funding any such plan or
funding other employee benefits for employees of the Company or of any
Subsidiary of the Company.

 

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

 

(r)                                    “Grandfathered
Persons” shall mean:

 

(i)                                     Bobby
G. Stevenson;

 

(ii)                                  any
spouse (including any current spouse that may become a former spouse and any
future spouse) of any Person described in subparagraph (i) of this
paragraph (r);

 

(iii)                               any
child or grandchild, whether by birth or adoption, whether now living or
hereafter born, of any Person described in subparagraph (i) or (ii) of
this paragraph (r);

 

(iv)                              any
spouse (including any current spouse that may become a former spouse and any
future spouse) of any Person described in subparagraph (iii) of this
paragraph (r);

 

(v)                                 any
estate of, or the executor, administrator or personal representative of any
estate of, or any guardian or custodian for, any Person described in
subparagraph (i), (ii), (iii) or (iv) of this paragraph (r) (so
long as such executor, administrator, personal representative, guardian or
custodian is acting in his or her capacity as such);

 

4

 

(vi)                              any
legal advisor of any Person described in subparagraph (i), (ii), (iii), (iv),
(v), (vii) or (viii) of this paragraph (r) who is given a
revocable proxy by such Person with respect to voting securities of the Company
of which such Person is the Beneficial Owner or who is or becomes an
attorney-in-fact or agent of such Person;

 

(vii)                           any
organization (whether now existing or hereafter formed) described in Section 501(c)(3) of
the Internal Revenue Code;

 

(viii)                        any
corporation, trust (including any voting trust), general partnership, limited
partnership, organization or other entity (whether now existing or hereafter
formed) of which substantially all of the outstanding beneficial, voting or
equity interests are beneficially owned, directly or indirectly, either (A) by
one or more of the Persons described in subparagraphs (i), (ii), (iii), (iv) and
(v) of this paragraph (r), or (B) by any combination of one or more of
the Persons described in subparagraphs (i), (ii), (iii), (iv) and (v) of
this paragraph (r) and one or more organizations described in subparagraph
(vii) of this paragraph (r); and

 

(ix)                                any
other Person (A) who or which is or becomes an Affiliate or Associate of
any Person described in subparagraph (i), (ii), (iii), (iv), (v), (vi), (vii) or
(viii) of this paragraph (r), or (B) of which any Person described in
subparagraph (i), (ii), (iii), (iv), (v), (vi), (vii) or (viii) of
this paragraph (r) is or becomes an Affiliate or Associate; provided,
in either case (A) or case (B), such other Person is not the Beneficial
Owner of 15% or more of the Common Shares then outstanding (for purposes of
determining the number of Common Shares of which such other Person is the
Beneficial Owner under this subparagraph (ix), such other Person shall not be
deemed to beneficially own Common Shares solely by reason of an Affiliate or
Associate relationship of the kind described in (A) or (B) above in
this subparagraph (ix)).

 

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

 

(t)                                    “NYSE”
shall mean the New York Stock Exchange.

 

(u)                                 “Person”
shall mean any individual, firm, corporation or other entity, and shall include
any successor (by merger or otherwise) to such entity.

 

(v)                                 “Preferred
Shares” shall mean shares of Series A Junior Participating Preferred
Stock, par value $.01 per share, of the Company having the rights and
preferences set forth in the Form of Certificate of Designations attached
to this Agreement as Exhibit A.

 

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

 

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

 

(y)                                 “Record
Date” shall have the meaning set forth in the Recitals.

 

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

 

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

 

5

 

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

 

(cc)                            “Right”
shall have the meaning set forth in the Recitals.

 

(dd)                          “Rights
Agent” shall have the meaning set forth in the Recitals.

 

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

 

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

 

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

 

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

 

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

 

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

 

(kk)                            “Spread” shall mean the excess of (i) the
Current Value over (ii) the Purchase Price.

 

(ll)                                  “Subsidiary”
of any Person shall mean any corporation or other entity of which securities or
other ownership interests having ordinary voting power sufficient to elect a
majority of the board of directors or other persons performing similar
functions are beneficially owned, directly or indirectly, by such Person, and
any corporation or other entity that is otherwise
controlled by such Person.

 

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

 

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

 

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

 

Section 2.                                  Appointment
of Rights Agent.  The Company hereby
appoints the Rights Agent to act as agent for the Company and the holders of
the Rights (who, in accordance with Section 3 hereof, shall prior
to the Distribution Date also be the holders of the Common Shares) in
accordance with the terms and conditions hereof, and the Rights Agent hereby
accepts such 

 

6

 

appointment. The Company may from time to
time appoint such co-Rights Agents as it may deem necessary or desirable.

 

Section 3.                                  Issue
of Rights Certificates.

 

(a)                                  “Distribution
Date” shall mean the date that is the earlier of (i) the Close of
Business on the tenth Business Day after the Shares Acquisition Date or (ii) the
Close of Business on the tenth Business Day (or such later date as may be
determined by action of the Board of Directors prior to such time any Person
becomes an Acquiring Person) after the date of the commencement by any Person
(other than an Exempt Person) of, or of the first public announcement of the
intention of such Person (other than an Exempt Person) to commence, a tender or
exchange offer the consummation of which would result in any Person becoming
the Beneficial Owner of Common Shares aggregating 15% or more of the Common
Shares then outstanding.

 

(b)                                 Until
the Distribution Date (i) the Rights will be evidenced (subject to the
provisions of Section 3(c) hereof) by the certificates for
Common Shares registered in the names of the holders thereof and not by
separate Rights Certificates, and (ii) the Rights will be transferable
only in connection with the transfer of the associated 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,
postage-prepaid mail, to each record holder of Common Shares as of the Close of
Business on the Distribution Date (other than any Acquiring Person or any
Associate or Affiliate of an Acquiring Person), at the address of such holder
shown on the records of the Company (which records shall be provided to the Rights Agent should the Rights Agent
be requested to do the mailing), a Rights Certificate, in substantially the
form of Exhibit B
hereto (a “Rights Certificate”), evidencing one Right (subject to
adjustment as provided herein) for each Common Share so held. In the event that
an adjustment in the number of Rights per Common Share has been made pursuant
to Section 11 hereof, at the time of distribution of the Rights
Certificates, the Company shall make necessary and appropriate rounding
adjustments (in accordance with Section 14(a) hereof) so that
Rights Certificates representing only whole numbers of Rights are distributed
and cash is paid in lieu of any fractional Rights. As of the Distribution Date,
the Rights will be evidenced solely by such Rights Certificates.

 

(c)                                  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 shall also constitute the transfer of the
Rights associated with the Common Shares represented thereby.

 

(d)                                 Rights
shall be issued in respect of all Common Shares which are issued (including,
without limitation, upon transfer of outstanding Common Shares, disposition of
Common Shares out of treasury stock or issuance or reissuance of Common Shares
out of authorized but unissued shares) after the Record Date but prior to the
earliest of the Distribution Date, the Redemption Date or the Final Expiration
Date.  Certificates representing such
Common Shares shall have impressed on, printed on, written on or otherwise
affixed to them the following legend:

 

7

 

This certificate also evidences and entitles
the holder hereof to certain rights as set forth in that certain Rights
Agreement between CIBER, Inc. and Wells Fargo Bank, National Association
(as successor rights agent), dated as of August 31, 1998, as amended and
restated by that certain First Amended and Restated Rights Agreement dated as
of May 2, 2008 (the “Rights Agreement”) as the same may be amended from
time to time, the terms of which are hereby incorporated herein by reference
and a copy of which is on file at the principal executive offices of CIBER, 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. CIBER, Inc. will mail to the holder of this certificate
a copy of the Rights Agreement without charge after receipt of a written
request therefor. Under certain circumstances, as set forth in the Rights Agreement,
rights owned by or transferred to any Person who becomes an Acquiring Person
(as defined in the Rights Agreement) and certain transferees thereof will
become null and void and will no longer be transferable.

 

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, except as otherwise provided herein, shall also constitute
the transfer of the Rights associated with the Common Shares represented
thereby. In the event that the Company purchases or otherwise acquires any
Common Shares after the Record Date but prior to the Distribution Date, any
Rights associated with such Common Shares shall be deemed canceled and retired
so that the Company shall not be entitled to exercise any Rights associated
with the Common Shares which are no longer outstanding.  Notwithstanding this paragraph (d), the
omission of a legend shall not affect the enforceability of any part of this
Agreement or the rights of any holder of the Rights.

 

Section 4.                                  Form of
Rights Certificates.

 

(a)                                  The
Rights Certificates (and the forms of election to purchase Preferred Shares and
of assignment to be printed on the reverse thereof) shall be substantially in
the form set forth in Exhibit B
hereto and may have such marks of identification or designation and such
legends, summaries or endorsements printed thereon as the Company may deem
appropriate and as are not inconsistent with the provisions of this 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 the
NYSE or of any stock exchange on which the Rights may from time to time be
listed, or to conform to usage. Subject to the provisions of Section 11
and Section 22 hereof, the Rights Certificates 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 price per one one-thousandths of a
Preferred Share set forth therein (the “Purchase Price”), but the number
of such one one-thousandths of a Preferred Share and the Purchase Price shall
be subject to adjustment as provided herein.

 

8

 

(b)                                 Any Rights Certificate
issued pursuant to Section 3(b) or Section 22
hereof that represents Rights beneficially owned by (i) an Acquiring
Person or any Associate or Affiliate of an Acquiring Person, (ii) a
transferee of an Acquiring Person (or of any such Associate or Affiliate) who
becomes a transferee after the Acquiring Person becomes such or (iii) a
transferee of an Acquiring Person (or of any such Associate or Affiliate) who
becomes a transferee prior to or concurrently with the Acquiring Person
becoming such and receives such Rights pursuant to either (A) a transfer
(whether or not for consideration) from the Acquiring Person to holders of
equity interests in such Acquiring Person or to any Person with whom such
Acquiring Person has any continuing agreement, arrangement or understanding
regarding the transferred Rights or (B) a transfer which a majority of the
authorized number of members of the Board of Directors has determined is part
of an agreement, arrangement or understanding which has as a primary purpose or
effect avoidance of Section 7(e) hereof, and any Rights
Certificate issued pursuant to Section 6 or Section 11
hereof upon transfer, exchange, replacement or adjustment of any other Rights
Certificate referred to in this sentence, shall contain (to the extent
feasible) the following legend:

 

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

 

The Company shall instruct the Rights Agent
in writing of the Rights which should be so legended and shall supply the
Rights Agent with such legended Rights Certificates.

 

Section 5.               Countersignature
and Registration.

 

(a)           The
Rights Certificates shall be executed on behalf of the Company by the Chairman
of the Board of Directors, the President, any of the Vice Presidents, the
Treasurer or the Controller of the Company, either manually or by facsimile
signature, shall have affixed thereto the Company’s seal or a facsimile
thereof, and shall be attested by the Secretary, an Assistant Secretary, the
Treasurer, an Assistant Treasurer, the Controller or a Vice President of the
Company, either manually or by facsimile signature. The Rights Certificates
shall be manually countersigned by the Rights Agent and shall not be valid for
any purpose unless countersigned. In case any officer of the Company who shall
have signed any of the Rights Certificates shall cease to be such officer of
the Company before countersignature by the Rights Agent and issuance and
delivery by the Company, such Rights Certificates, nevertheless, may be
countersigned by the Rights Agent and issued and delivered by the Company with
the same force and effect as though the Person who signed such Rights
Certificates had not ceased to be such officer of the Company; and any Rights
Certificate may be signed on behalf of the Company by any Person who, at the
actual date of the execution of such Rights Certificate, shall be a proper
officer of the Company to sign such Rights Certificate, although at the date of
the execution of this Agreement any such Person was not such an officer.

 

9

 

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

 

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

 

(a)                                  Subject
to the provisions of Section 4(b), Section 7(e), and Section 14
hereof, at any time after the Close of Business on the Distribution Date, and
at or prior to the Close of Business on the earlier of the Redemption Date or
the Final Expiration Date, any Rights Certificate or Rights Certificates (other
than Rights Certificates representing Rights that have become void pursuant to Section 7(e) hereof
or that have been exchanged pursuant to Section 24 hereof) may be
transferred, split up, combined or exchanged for another Rights Certificate or
Rights Certificates, entitling the registered holder to purchase a like number
of one one-thousandths of a Preferred Share (or Common Shares and/or other
securities, as the case may be) as the Rights Certificate or Rights
Certificates surrendered then entitled such holder to purchase. Any registered
holder desiring to transfer, split up, combine or exchange any Rights
Certificate or Rights Certificates shall make such request in writing delivered
to the Rights Agent, and shall surrender the Rights Certificate or Rights
Certificates to be transferred, split up, combined or exchanged at the office
or agency of the Rights Agent designated for such purpose. Thereupon the Rights
Agent shall, subject to Section 4(b), Section 7(e), Section 14
and Section 24 hereof, countersign and deliver to the Person
entitled thereto a Rights Certificate or Rights Certificates, as the case may
be, as so requested. The Company may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer, split up, combination or exchange of Rights Certificates.

 

(b)                                 Subject
to the provisions of Section 7(e) hereof, upon receipt by the
Company and the Rights Agent of evidence reasonably satisfactory to them of the
loss, theft, destruction or mutilation of a Rights 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 Rights Certificate if mutilated,
the Company will make and deliver a new Rights Certificate of like tenor to the
Rights Agent for delivery to the registered holder in lieu of the Rights
Certificate so lost, stolen, destroyed or mutilated.

 

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

 

(a)                                  Except
as otherwise provided herein, the Rights shall become exercisable on the
Distribution Date, and thereafter the registered holder of any Rights
Certificate may exercise the Rights evidenced thereby (except as otherwise
provided herein) in whole or in part, upon surrender of the Rights Certificate,
with the form of election to purchase on the reverse side thereof duly
executed, to the Rights Agent at the office or agency of the Rights Agent
designated for such purpose, together with payment of the Purchase Price for
each one one-thousandths of a Preferred Share (or Common Shares and/or other
securities, as the case may be) as to which the 

 

10

 

Rights are
exercised, at any time which is both after the Distribution Date and prior to
the earliest of (i) 5:00 p.m., Denver, Colorado time, on May 2,
2018 (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 shall be initially $37.00 for each one one-thousandths of a
Preferred Share purchasable upon the exercise of a Right. The Purchase Price
and the number of one one-thousandths of a Preferred Share or other securities
or property to be acquired upon exercise of a Right shall be subject to
adjustment from time to time as provided in Section 11 and Section 13
hereof and shall be payable in lawful money of the United States of America in
accordance with paragraph (c) of this Section 7.

 

(c)                                  Except
as otherwise provided herein, upon receipt of a Rights Certificate representing
exercisable Rights, with the form of election to purchase duly executed,
accompanied by payment of the aggregate Purchase Price for the Preferred Shares
(or Common Shares and/or other securities, as the case may be) to be purchased and an amount equal to any applicable
transfer tax required to be paid by the holder of such Rights 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 (1) (A) requisition from any transfer agent
of the Preferred Shares certificates for the number of Preferred Shares to be
purchased and the Company hereby irrevocably authorizes its transfer agent to
comply with all such requests, or (B) requisition from the depositary
agent depositary receipts representing interests in 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, (2) when appropriate,
requisition from the Company the amount of cash to be paid in lieu of issuance
of fractional shares in accordance with Section 14 hereof, (3) promptly
after receipt of such certificates or depositary receipts, cause the same to be
delivered to or upon the order of the registered holder of such Rights
Certificate, registered in such name or names as may be designated by such
holder and (4) when appropriate, after receipt, promptly deliver cash to
be paid in lieu of fractional shares to or upon the order of the registered
holder of such Rights Certificate.  In
the event the Company is obligated to issue other securities (including Common
Shares) of the Company, pay cash, and/or distribute other property pursuant to Section 11(a) hereof,
the Company shall make all arrangements necessary so that such securities,
cash, and/or other property are available for distribution by the Rights Agent,
if and when appropriate.

 

(d)                                 Except
as otherwise provided herein, in case the registered holder of any Rights
Certificate shall exercise less than all the Rights evidenced thereby, a new
Rights Certificate evidencing Rights equivalent to the Rights remaining
unexercised shall be issued by the Rights Agent to the registered holder of
such Rights Certificate or to his duly authorized assigns, subject to the
provisions of Section 14 hereof.

 

(e)                                  Notwithstanding
anything in this Agreement to the contrary, from and after the first occurrence
of a Section 11(a)(ii) Event, any Rights beneficially owned by (i) an
Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a
transferee of an Acquiring Person (or of any such Associate or Affiliate) who
becomes a transferee after the 

 

11

 

Acquiring
Person becomes such, or (iii) a transferee of an Acquiring Person (or of
any such Associate or Affiliate) who becomes a transferee prior to or
concurrently with the Acquiring Person becoming such and receives such Rights
pursuant to either (A) a transfer (whether or not for consideration) from
the Acquiring Person to holders of equity interests in such Acquiring Person or
to any Person with whom such Acquiring Person has any continuing agreement,
arrangement or understanding regarding the transferred Rights or (B) a
transfer which a majority of the authorized number of members of the Board of
Directors has determined is part of an agreement, arrangement or understanding
which has as a primary purpose or effect the avoidance of this Section 7(e),
shall become null and void without any further action, and no holder of such
Rights shall have any rights whatsoever with respect to such Rights, whether
under any provision of this Agreement or otherwise.  The Company shall use all reasonable efforts
to ensure that the provisions of this Section 7(e) and of Section 4(b) hereof
are complied with, but shall have no liability to any holder of Rights
Certificates or other Person as a result of its failure to make any
determinations with respect to an Acquiring Person or its Affiliates,
Associates or transferees hereunder.  The
Rights Agent shall endeavor to comply with the provisions hereof to the extent
it has received instructions from the Company concerning such matters.

 

(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, in addition to compliance with Section 7(a),
have (i) duly and properly completed and signed the certificate contained
in the form of election to purchase set forth on the reverse side of the Rights
Certificate surrendered for such exercise and (ii) provided such
additional evidence of the identity of the Beneficial Owner (or former
Beneficial Owner) or Affiliates or Associates thereof as the Company shall
reasonably request.

 

Section 8.                                            Cancellation
and Destruction of Rights Certificates. 
All Rights Certificates surrendered for the purpose of exercise,
transfer, split up, combination or exchange shall, if surrendered to the
Company or 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 Rights Certificates shall be issued in lieu thereof
except as expressly permitted by any of the provisions of this Agreement.
Subject to applicable law and regulation, the Rights Agent shall maintain in a
retrievable database electronic records of all cancelled or destroyed stock
certificates which have been canceled or destroyed by the Rights Agent.  The Rights Agent shall maintain such
electronic records or physical records for the time period required by
applicable law and regulation.  Upon
written request of the Company (and at the expense of the Company), the Rights
Agent shall provide to the Company or its designee copies of such electronic
records relating to rights certificates cancelled or destroyed by the Rights
Agent.

 

Section 9.                                            Reservation
and Availability of Capital Stock.

 

(a)                                  The
Company shall cause to be reserved and kept available out of its authorized and
unissued Preferred Shares (and, following the occurrence of a Triggering Event,
out of its authorized and unissued Common Shares and/or other securities or out
of its authorized and issued shares held in its treasury), the number of
Preferred Shares (and, following the occurrence of a Triggering Event, Common
Shares and/or other securities) that, as provided in 

 

12

 

this
Agreement, including Section 11(a)(iii) hereof, shall be
sufficient to permit the exercise in full of all outstanding Rights.

 

(b)                                 In
the event the Preferred Shares (and, following the occurrence of a Triggering
Event, Common Shares and/or other securities) issuable upon the exercise of
Rights may be listed on the NYSE or on any other national securities exchange,
the Company shall use its best efforts to cause, from and after such time as
the Rights become exercisable, all shares reserved for such issuance to be
listed on the NYSE or such other exchange upon official notice of issuance upon
such exercise.

 

(c)                                  The
Company shall use its best efforts to (i) file, as soon as practicable
following the earliest date after the first occurrence of a Section 11(a)(ii) Event
on which the consideration to be delivered by the Company upon exercise of the
Rights has been determined in accordance with Section 11(a)(iii) hereof,
or as soon as is required by law following the Distribution Date, as the case
may be, a registration statement under the Securities Act with respect to the
securities purchasable upon exercise of the Rights on an appropriate form, (ii) cause
such registration statement to become effective as soon as practicable after
such filing, and (iii) cause such registration statement to remain
effective (with a prospectus at all times meeting the requirements of the
Securities Act) until the earlier of (A) the date as of which the Rights
are no longer exercisable for such securities, and (B) the date of
expiration of the Rights.  The Company
shall also take such action as may be appropriate under, or to ensure
compliance with, the securities or “blue sky” laws of the various states in
connection with the exercisability of the Rights.  The Company may temporarily suspend, for a
period of time not to exceed 90 days after the date set forth in clause (i) of
the first sentence of this Section 9(c), the exercisability of the
Rights in order to prepare and file such registration statement and permit it
to become effective.  In addition, if the
Company shall determine that a registration statement is required following the
Distribution Date, the Company may temporarily suspend the exercisability of
the Rights until such time as a registration statement has been declared
effective.  Upon any suspension of
exercisability of Rights referred to in this Section 9(c), the
Company shall issue a public announcement stating that the exercisability of
the Rights has been temporarily suspended, as well as a public announcement at
such time as the suspension is no longer in effect, in each case with
simultaneous written notice to the Rights Agent.  Notwithstanding any provision of this Agreement
to the contrary, the Rights shall not be exercisable and shall be null and void
so long as held by a holder in any jurisdiction where the requisite
qualification to the issuance to such holder, or the exercise by such holder,
of the Rights in such jurisdiction shall not have been obtained or be
obtainable, or the exercise thereof shall not be permitted under applicable law
or a registration statement shall not have been declared effective.

 

(d)                                 The
Company covenants and agrees that it will take all such action as may be
necessary to ensure that all Preferred Shares (and, following the occurrence of
a Triggering Event, Common Shares and/or other securities) delivered upon
exercise of Rights shall, at the time of delivery of the certificates for such
shares (subject to payment of the Purchase Price), be duly and validly
authorized and issued and fully paid and non-assessable.

 

(e)                                  The
Company further covenants and agrees that it will pay when due and payable any
and all federal and state transfer taxes and charges which may be payable in
respect of the issuance or delivery of the Rights Certificates and of any
certificates for a number of 

 

13

 

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

 

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

 

Section 11.                                      Adjustment
of Purchase Price, Number and Kind of Shares or Number of Rights.  The Purchase Price, the number and kind of
shares covered by each Right and the number of Rights outstanding are subject
to adjustment from time to time as provided in this Section 11.

 

(a)                                  (i) 
In the event the Company shall at any time after the date of this Agreement (A) declare
a dividend on the Preferred 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) and Section 7(e) hereof,
the Purchase Price in effect at the time of the record date for such dividend
or of the effective date of such subdivision, combination or reclassification,
and the number and kind of shares of 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, upon payment of the Purchase Price then
in effect, the aggregate number and kind of shares of capital stock which, if
such Right had been exercised immediately 

 

14

 

prior to such
date and at a time when the Preferred Shares transfer books of the Company were
open, the holder would have owned upon such exercise and been entitled to
receive by virtue of such dividend, subdivision, combination or
reclassification; provided, however, that in no event shall the
consideration to be paid upon the exercise of one Right be less than the
aggregate par value of the shares of capital stock of the Company issuable upon
exercise of one Right.  If an event
occurs which would require an adjustment under both this Section 11(a)(i) and
Section 11(a)(ii) hereof, the adjustment provided for in this Section 11(a)(i) shall
be in addition to, and shall be made prior to, any adjustment required pursuant
to Section 11(a)(ii) hereof.

 

(ii)                                  Subject to Section 23
and Section 24 of this Agreement, in the event any Person becomes
an Acquiring Person, unless the event causing such Person to become an
Acquiring Person is a transaction set forth in Section 13(a) hereof,
(the first occurrence of such event being referred to as the “Section 11(a)(ii) Event”),
proper provision shall be made so that promptly following the Redemption Period
(as defined in Section 23 hereof) each holder of a Right (except as
provided below and in Section 7(e) hereof) shall thereafter
have the right to receive, upon exercise thereof and payment of an amount equal
to the then current Purchase Price in accordance with this Agreement, in lieu
of the number of one one-thousandths of a Preferred Share for which such Right
was exercisable, such number of Common Shares 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 was or would have
been exercisable immediately prior to the Section 11(a)(ii) Event,
whether or not such Right was then exercisable, and (y) dividing that
product (which following the Section 11(a)(ii) Event, shall
thereafter be referred to as the “Purchase Price” for each Right and for
all purposes of this Agreement except to the extent set forth in Section 13
hereof) by 50% of the then current per share market price of the Company’s
Common Stock (determined pursuant to Section 11(d)(i) hereof)
on the date of the occurrence of the Section 11(a)(ii) Event (such
number of shares, the “Adjustment Shares”).

 

(iii)                               The Company may at its
option substitute for a share of Common Stock issuable upon the exercise of
Rights in accordance with the foregoing subparagraph (ii) such number or
fractions of Preferred Shares having an aggregate current market value equal to
the current per share market price of a share of Common Stock. In the event
that there shall not be sufficient treasury shares of Common Stock or
authorized but unissued Common Stock to permit the exercise in full of the
Rights in accordance with the foregoing subparagraph (ii) of this Section 11(a),
the Board of Directors shall, to the extent permitted by applicable law and any
material agreements then in effect to which the Company is a party (A) determine
the value of the Adjustment Shares issuable upon the exercise of a Right in
accordance with the foregoing subparagraph (ii) (the “Current Value”)
and (B) with respect to each Right (other than Rights which have become
void pursuant to Section 7(e) hereof), make adequate provision
to substitute for some or all of the Adjustment Shares issuable in accordance
with subparagraph (ii) upon exercise of the Right and payment of the
applicable Purchase Price, (1) cash, (2) a reduction in the Purchase
Price, (3) Preferred Shares or other equity securities of the Company
(including, without limitation, shares or fractions of shares of preferred
stock which, by virtue of having dividend, voting and liquidation rights
substantially comparable to those of the shares of Common Stock, are deemed in
good faith by the Board of Directors to have substantially the same value as
the shares of Common Stock (such Preferred Shares and shares or fractions of
shares of preferred stock are hereinafter referred to as “common share
equivalents”), (4) debt securities of the Company, (5) other assets
or (6) any combination of the foregoing, having a 

 

15

 

value which, when added to the value of the shares of Common Stock
actually issued upon exercise of such Right, shall have an aggregate value
equal to the Current Value (less the amount of any reduction in the Purchase
Price), where such aggregate value has been determined by the Board of
Directors upon the advice of a nationally recognized investment banking firm
selected in good faith by the Board of Directors; provided, however,
if the Company shall not make adequate provision to deliver Current Value
pursuant to clause (B) above within thirty (30) days following the later
of (x) the Section 11(a)(ii) Event and (y) the date on
which the Company’s right of redemption pursuant to Section 23(a) expires
(the later of (x) and (y) being referred to herein as the “Section 11(a)(ii) Trigger
Date”), then the Company shall be obligated to deliver, to the extent
permitted by applicable law and any material agreements then in effect to which
the Company is a party, upon the surrender for exercise of a Right and without
requiring payment of the Purchase Price, shares of Common Stock (to the extent
available), and then, if necessary, such number or fractions of Preferred
Shares (to the extent available) and then, if necessary, cash, which shares
and/or cash have an aggregate value equal to the Spread.  If, upon the occurrence of the Section 11(a)(ii) Event,
the Board of Directors shall determine in good faith that it is likely that
sufficient additional shares of Common Stock could be authorized for issuance
upon exercise in full of the Rights, then, if the Board of Directors so elects,
the 30 day period set forth above may be extended to the extent necessary, but
not more than 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 30 day period, as it may be extended, is herein
called the “Substitution Period”). To the extent that the Company
determines that some action need be taken pursuant to the preceding provisions
of this Section 11(a)(iii), the Company (1) shall provide, subject
to Section 7(e) hereof and the last sentence of this Section 11(a)(iii)
hereof, that such action shall apply uniformly to all outstanding Rights
and (2) may suspend the exercisability of the Rights until the expiration
of the Substitution Period in order to seek any authorization of additional
shares and/or to decide the appropriate form of distribution to be made
pursuant to such second sentence and to determine the value thereof. In the
event of any such suspension, the Company shall issue a public announcement
stating that the exercisability of the Rights has been temporarily suspended,
as well as a public announcement at such time as the suspension is no longer in
effect. For purposes of this Section 11(a)(iii), the value of each
Adjustment Share shall be the current per share market price (as determined
pursuant to Section 11(d)(i)) on the Section 11(a)(ii) Trigger
Date and the per share or per unit fractional value of any common share
equivalent shall be deemed to equal the current per share market price of the
Common Shares. The Board of Directors of the Company may, but shall not be
required to, establish procedures to allocate the right to receive shares of
Common Stock upon the exercise of the Rights among holders of Rights pursuant
to this Section 11(a)(iii).

 

(b)                                 In
case the Company shall fix a record date for the issuance of rights, options or
warrants to all holders of Preferred Shares entitling them (for a period
expiring within 45 calendar days after such record date) 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 (determined pursuant to Section 11(d) hereof
on such record date), the Purchase Price to be in effect after such record date
shall be determined by multiplying the Purchase Price in effect immediately
prior to such record date by 

 

16

 

a fraction,
the numerator of which shall be the number of Preferred Shares and equivalent
preferred shares which the aggregate offering price of the total number of
Preferred Shares and/or the total number of 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 market price, and
the denominator of which shall be the number of Preferred Shares and equivalent
preferred shares to be offered for subscription or purchase (or into which the
convertible securities so to be offered are initially convertible); provided,
however, that in no event shall the consideration to be paid upon the
exercise of one Right be less than the aggregate par value of the shares of
capital stock of the Company issuable upon exercise of one Right. In case such
subscription price may be paid in a consideration part or all of which shall be
in a form other than cash, the value of such consideration shall be as
determined in good faith by the Board of Directors of the Company, whose
determination shall be described in a statement filed with the Rights Agent and
shall be binding on the Rights Agent and the holders of Rights. Preferred
Shares and equivalent preferred shares owned by or held for the account of the
Company shall not be deemed outstanding for the purpose of any such computation.
Such adjustment shall be made successively whenever such a record date is
fixed, and in the event that such rights, options or warrants are not so
issued, the Purchase Price shall be adjusted to be the Purchase Price which
would then be in effect if such record date had not been fixed.

 

(c)                                  In
case the Company shall fix a record date for the making of a distribution to
all holders of the Preferred 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, cash (other
than a regular quarterly cash dividend payable out of the earnings or retained
earnings of the Company), assets (other than a dividend payable in Preferred
Shares, but including a dividend payable in stock other than 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 (determined pursuant to Section 11(d) hereof)
on such record date, less the fair market value (as determined in good faith by
the Board of Directors of the Company, whose determination shall be described
in a statement filed with the Rights Agent) of the portion of the cash, 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 (determined pursuant to Section 11(d) hereof)
of a Preferred Share; provided, however, that in no event shall the
consideration to be paid upon the exercise of one Right be less than the
aggregate par value of the shares of capital stock of the Company to be issued
upon exercise of one Right. Such adjustments shall be made successively
whenever such a record date is fixed, and in the event that such distribution
is not so made, the Purchase Price shall again be adjusted to be the Purchase
Price which would then be in effect if such record date had not been fixed.

 

(d)                                 (i) 
Except as otherwise provided herein, for the purpose of any computation
hereunder, the “current per share market price” of Common Shares on any date
shall be deemed to be the average of the daily closing prices per share of such
Common Shares for the 30 consecutive Trading Days (as defined below) immediately
prior to, but not including, such date; provided, however, that
in the event that the current per share market price of Common Shares is
determined during a period following the announcement by the issuer of such 

 

17

 

Common Shares
of (A) a dividend or distribution on such Common Shares payable in such
Common Shares or securities convertible into such Common Shares (other than the
Rights), or (B) any subdivision, combination or reclassification of such
Common Shares, 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 take into account
ex-dividend trading. The closing price for each day shall be the last sale
price, regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, in either case as
reported by the principal consolidated transaction reporting system with
respect to securities listed or admitted to trading on the NYSE or, if the
Common Shares are not listed or admitted to trading on the NYSE, as reported in
the principal consolidated transaction reporting system with respect to
securities listed on the principal national securities exchange on which the
Common Shares are listed or admitted to trading or, if the Common Shares are
not listed or admitted to trading on any national securities exchange, the last
quoted price or, if not so quoted, the average of the high bid and low asked
prices in the over-the-counter market, as reported by the National Association
of Securities Dealers, Inc. Automated Quotations System (“NASDAQ”)
or such other system then in use, or, if on any such date the Common Shares are
not quoted by any such organization, the average of the closing bid and asked
prices as furnished by a professional market maker making a market in the
Common Shares 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 Common Shares are listed or admitted to trading is open for the
transaction of business or, if the Common Shares are not listed or admitted to
trading on any national securities exchange, a Business Day.  If the Common Shares are not publicly-held or
not 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 and shall be conclusive for all purposes.

 

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

 

(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,

 

18

 

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-thousandth of a Preferred
Share or share of Common Stock or other share or security as the case may be.
Notwithstanding the first sentence of this Section 11(e), any
adjustment required by this Section 11 shall be made no later than
the earlier of (i) three years from the date of the transaction which
requires such adjustment or (ii) the date of the expiration of the right
to exercise any Rights.

 

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

 

(i)                                     The
Company may elect on or after the date of any adjustment of the Purchase Price 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 

 

19

 

or any day
thereafter, but, if the Rights Certificates have been issued, shall be at least
10 days later than the date of the public announcement. If Rights Certificates
have been issued, upon each adjustment of the number of Rights pursuant to this
Section 11(i), the Company may, as promptly as practicable, cause
to be distributed to holders of record of Rights Certificates on such record
date Rights Certificates evidencing, subject to Section 14 hereof, the
additional Rights to which such holders shall be entitled as a result of such
adjustment, or, at the option of the Company, shall cause to be distributed to
such holders of record in substitution and replacement for the Rights
Certificates held by such holders prior to the date of adjustment, and upon
surrender thereof, if required by the Company, new Rights Certificates
evidencing all the Rights to which such holders shall be entitled after such
adjustment. Rights Certificates so to be distributed shall be issued, executed
and countersigned in the manner provided for herein (and may bear, at the
option of the Company, the adjusted Purchase Price) and shall be registered in
the names of the holders of record of Rights Certificates on the record date specified
in the public announcement.

 

(j)                                     Irrespective
of any adjustment or change in the Purchase Price or the number of one
one-thousandths of a Preferred Share issuable upon the exercise of the Rights,
the Rights 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 Rights Certificates issued hereunder.

 

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

 

(l)                                     In
any case in which this Section 11 shall require that an adjustment
in the Purchase Price be made effective as of a record date for a specified
event, the Company may elect to defer until the occurrence of such event the
issuance 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 consolidation or subdivision of the Preferred Shares, issuance
wholly for cash of any Preferred Shares at less than the current market price,
issuance wholly for cash of Preferred Shares or securities which by their terms
are convertible into or exchangeable for Preferred Shares, dividends on
Preferred Shares payable in Preferred Shares or issuance of rights, options or
warrants referred to hereinabove in Section 11, hereafter made by
the Company to holders of its Preferred Shares shall not be taxable to such
stockholders.

 

20

 

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

 

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

 

(p)                                 Anything
in this Agreement to the contrary notwithstanding, in the event that the
Company, prior to the Distribution Date, shall (i) declare a dividend on
Common Shares payable in Common Shares, (ii) subdivide the outstanding
Common Shares or (iii) combine the outstanding Common Shares into a
smaller number of shares, the number of Rights associated with each Common
Share then outstanding, or issued or delivered thereafter but prior to the
Distribution Date, shall be proportionately adjusted so that the number of Rights
thereafter associated with each Common Share following any such event shall
equal the result obtained by multiplying the number of Rights associated with
each Common Share immediately prior to such event by a fraction the numerator
of which shall be the total number of Common Shares outstanding immediately
prior to the occurrence of the event and the denominator of which shall be the
total number of Common Shares outstanding immediately following the occurrence
of such event.

 

Section 12.                                      Certificate of
Adjusted Purchase Price or Number of Shares.  Whenever an adjustment is made as provided in
Section 11 or Section 13 hereof, the Company shall (a) promptly
prepare a certificate setting forth such adjustment, and a brief statement of
the facts and computations accounting for such adjustment, (b) promptly
file with the Rights Agent and with each transfer agent for the Preferred
Shares and the Common Shares a copy of such certificate and (c) mail or
deliver a brief summary thereof to each holder of a Rights Certificate (or, if
prior to the Distribution Date, to each holder of a certificate representing
Common Shares) in accordance with Section 25 hereof.  Notwithstanding the foregoing sentence, the
failure of the Company to make such a certification or give such notice shall
not affect the validity of or the force or effect of the requirement for such
adjustment.  Any adjustment made pursuant
to Section 11 or Section 13 hereof, shall be effective
as of the date of the event giving rise to such adjustment.  The Rights Agent shall be fully protected in
relying on any such certificate and on 

 

21

 

any adjustment therein
contained and shall not be deemed to have knowledge of any adjustment unless
and until it shall have received such certificate.

 

Section 13.                                   Consolidation,
Merger or Sale or Transfer of Assets, Cash Flow or Earnings Power.

 

(a)                                  In
the event that, following the Shares Acquisition Date, directly or indirectly,

 

(x)                                   the
Company shall consolidate with, or merge with and into, any other Person (other
than a Subsidiary of the Company in a transaction that complies with Section 11(o) hereof)
and the Company shall not be the continuing or surviving corporation of such
consolidation or merger,

 

(y)                                 any
Person (other than a Subsidiary of the Company in a transaction that complies
with Section 11(o) hereof) shall consolidate with, or merge
with and into, the Company, and the Company shall be the continuing or
surviving corporation of such consolidation or merger and, in connection with
such consolidation or merger, all or part of the outstanding Common Shares
shall be changed into or exchanged for stock or other securities of any other
Person or cash or any other property, or

 

(z)                                   the Company
shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell
or otherwise transfer), in one transaction or a series of related transactions,
assets, cash flow or earning power aggregating more than 50% of the assets,
cash flow or earning power of the Company and its Subsidiaries (taken as a
whole) to any Person or Persons (other than the Company and/or any of its
Subsidiaries in one or more transactions each of which complies with Section 11(o) hereof),

 

then, and in each such case,
proper provision shall be made so that:

 

(i)                                     each holder of
a Right, except as provided in Section 7(e) hereof, shall,
upon the expiration of the Redemption Period (as defined in Section 23(a) hereof),
thereafter have the right to receive, upon the exercise thereof at the then current
Purchase Price in accordance with the terms of this Agreement, such number of
validly authorized and issued, fully paid, non-assessable and freely tradable
Common Shares of the Principal Party (as defined below), not subject to any
liens, encumbrances, rights of first refusal or other adverse claims, as shall
be equal to the result obtained by

 

(1)                                  multiplying
the then current Purchase Price by the number of one one-thousandths of a
Preferred Share for which a Right was exercisable immediately prior to the
first occurrence of a Section 13 Event (or, if a Section 11(a)(ii) Event
has occurred prior to the first occurrence of a Section 13 Event,
multiplying the number of one one-thousandths of a Preferred Share for which a
Right was exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event
by the Purchase Price in effect immediately prior to such first occurrence),
and

 

(2)                                  dividing
that product (which product, following the first occurrence of a Section 13
Event, shall be referred to as the “Purchase Price” for each Right and 

 

22

 

for all purposes of this Agreement) by 50% of
the current per share market price of the Common Shares of such Principal Party
(determined in accordance with Section 11(d)(i) hereof) on the
date of consummation of such Section 13 Event (or the fair market value on
such date of other securities or property of the Principal Party, as provided
for herein);

 

(ii)                                  such Principal
Party shall thereafter be liable for, and shall assume, by virtue of such Section 13
Event, all the obligations and duties of the Company pursuant to this
Agreement;

 

(iii)                               the term “Company”
shall thereafter be deemed to refer to such Principal Party, it being
specifically intended that the provisions of Section 11 hereof
shall apply only to such Principal Party following the first occurrence of a Section 13
Event;

 

(iv)                              such Principal
Party shall take such steps (including, but not limited to, the reservation of
a sufficient number of its Common Shares) in connection with the consummation
of any such transaction as may be necessary to assure that the provisions
hereof shall thereafter be applicable, as nearly as reasonably may be, in
relation to its Common Shares thereafter deliverable upon the exercise of the
Rights; and

 

(v)                                 the provisions
of Section 11(a)(ii) hereof shall be of no effect following
the first occurrence of any Section 13 Event.

 

(b)                                 “Principal
Party” shall mean

 

(i)                                     in the case of
any transaction described in clause (x) or (y) of the first sentence
of Section 13(a) hereof, (A) the Person (including the Company
as successor thereto or as the surviving corporation) that is the issuer of any
securities into which Common Shares of the Company are converted in the merger
or consolidation so described, or, if there is more than one such issuer, the
issuer of Common Shares that has the highest aggregate current market price (as
determined pursuant to Section 11(d) hereof) and (B) if
no securities or other equity interests are so issued, the Person (including
the Company as successor thereto or as the surviving corporation) that is the
other constituent party to such merger or consolidation, or, if there is more
than one such Person, the Person that is a constituent party to such merger or
consolidation, the Common Shares of which have the highest aggregate current
market price (as determined pursuant to Section 11(d) hereof);
and

 

(ii)                                  in the case of
any transaction described in clause (z) of the first sentence of Section 13(a) hereof,
the Person that is the party receiving the greatest portion of the assets, cash
flow or earning power transferred pursuant to such transaction or transactions,
or, if each Person that is a party to such transaction or transactions receives
the same portion of the assets, cash flow or earning power transferred pursuant
to such transaction or transactions or if the Person receiving the greatest
portion of the assets, cash flow or earning power cannot be determined,
whichever of such Persons is the issuer of Common Shares having the highest
aggregate current market price (as determined pursuant to Section 11(d) hereof);

 

provided, however, that in
any such case: (1) if the Common Shares of such Person are not at such
time and have not been continuously over the preceding twelve (12) month period
registered under Section 12 of the Exchange Act, and such Person is a
direct or indirect 

 

23

 

Subsidiary of another Person the Common Shares of
which are and have been so registered, “Principal Party” shall refer to such
other Person; (2) if the Common Shares of such Person are not and have not
been so registered and such Person is a Subsidiary, directly or indirectly, of
more than one Person, the Common Shares of two or more of which are and have
been so registered, “Principal Party” shall refer to whichever of such Persons
is the issuer of the Common Shares having the greatest aggregate market value;
and (3) if the Common Shares of such Person are not and have not been so
registered and such Person is owned, directly or indirectly, by a joint venture
formed by two or more Persons that are not owned, directly or indirectly, by
the same Person, the rules set forth in (1) and (2) above shall
apply to each of the chains of ownership having an interest in such joint
venture as if such party were a Subsidiary of both or all of such joint
venturers, and the Principal Parties in each such chain shall bear the
obligations set forth in this Section 13 in the same ratio as their
direct or indirect interests in such Person bear to the total of such
interests.

 

(c)                                  The
Company shall not consummate any Section 13 Event unless the Principal
Party shall have a sufficient number of authorized Common Shares which have not
been issued or reserved for issuance to permit the exercise in full of the
Rights in accordance with this Section 13 and unless prior thereto
the Company and such Principal Party shall have executed and delivered to the
Rights Agent a supplemental agreement providing for the terms set forth in
paragraphs (a) and (b) of this Section 13 and further
providing that, as soon as practicable after the date of any such Section 13
Event, the Principal Party shall:

 

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

 

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

 

(iii)                               deliver to
holders of the Rights historical financial statements for the Principal Party
which comply in all respects with the requirements for registration on Form 10
(or any successor form) under the Exchange Act; and

 

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

 

(d)                                 In
case the Principal Party that is to be a party to a transaction referred to in
this Section 13 has at the time of such transaction, or immediately
following such transaction 

 

24

 

shall have, a provision in any
of its authorized securities or in its certificate or articles of incorporation
or by-laws or other instrument governing its affairs, or any other agreements
or arrangements, which provision would have the effect of (i) causing such
Principal Party to issue, in connection with, or as a consequence of, the
consummation of a transaction referred to in this Section 13,
Common Shares of such Principal Party at less than the then current per share
market price (as determined pursuant to Section 11(d) hereof)
or securities exercisable for, or convertible into, Common Shares of such Principal
Party at less than such then current market price (other than to holders of
Rights pursuant to this Section 13), (ii) providing for any
special payment, tax or similar provisions in connection with the issuance of
the Common Shares of such Principal Party pursuant to the provisions of this Section 13
or (iii) otherwise eliminating or substantially diminishing the benefits
intended to be afforded by the Rights in connection with, or as a consequence
of, the consummation of a transaction referred to in this Section 13,
then, in such event, the Company shall not consummate any such transaction
unless prior thereto the Company and such Principal Party shall have executed
and delivered to the Rights Agent a supplemental agreement providing that the
provision in question of such Principal Party shall have been cancelled, waived
or amended, or that the authorized securities shall be redeemed, so that the
applicable provision shall have no effect in connection with, or as a
consequence of, the consummation of such transaction.

 

(e)                                  The
provisions of this Section 13 shall similarly apply to successive
mergers or consolidations or sales or other transfers.  In the event that a Section 13 Event
shall occur at any time after the occurrence of a Section 11(a)(ii) Event,
the Rights which have not theretofore been exercised shall thereafter become
exercisable in the manner described in Section 13(a) hereof.

 

Section 14.                                      Fractional
Rights and Fractional Shares.

 

(a)                                  The
Company shall not be required to issue fractions of Rights, except prior to the
Distribution Date as provided in Section 11(p) hereof, or to
distribute Rights Certificates which evidence fractional Rights. In lieu of
such fractional Rights, there shall be paid to the registered holders of the
Rights Certificates with regard to which such fractional Rights would otherwise
be issuable, an amount in cash equal to the same fraction of the 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 Right
for the Trading Day immediately prior to the date on which such fractional
Rights would have been otherwise issuable. The closing price of a Right 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 NYSE or, if the Rights are not listed or admitted to trading on the NYSE,
as reported in the principal consolidated transaction reporting system with
respect to securities listed on the principal 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 

 

25

 

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) 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). Interests in 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 may pay to the registered holders of Rights Certificates at the time
such Rights are exercised as herein provided an amount in cash equal to the
same fraction of the current market value of one one-thousandth of a Preferred
Share. For the purposes of this Section 14(b), the current market
value of one one-thousandth of a Preferred Share shall be one one-thousandth of
the closing price of a Preferred Share (as determined pursuant to Section 11(d)(ii) hereof)
for the Trading Day immediately prior to the date of such exercise.

 

(c)                                  Following
the occurrence of a Triggering Event giving rise to the right to receive Common
Shares, common share equivalents or other securities upon the exercise of a
Right, the Company shall not be required to issue fractions of Common Shares,
common share equivalents or other securities upon exercise of the Rights or to
distribute certificates which evidence fractional Common Shares, common share
equivalents or other securities.  In lieu
of fractional Common Shares, common share equivalents or other securities, the
Company may pay to the registered holders of Rights Certificates at the time
such Rights are exercised as herein provided an amount in cash equal to the
same fraction of the current market value of one Common Share, common share
equivalents or other securities.  For
purposes of this Section 14(c), the current market value of one
Common Share shall be the closing price of one Common Share (as determined
pursuant to Section 11(d)(i) hereof) for the Trading Day
immediately prior to the date of such exercise.

 

(d)                                 The
holder of a Right by the acceptance of the Right expressly waives his right to
receive any fractional Rights or any fractional shares upon exercise of a Right
(except as 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, are vested in the respective registered holders of the Rights
Certificates (and, prior to the Distribution Date, the registered holders of
the Common Shares); and any registered holder of any Rights Certificate (or,
prior to the Distribution Date, of the Common Shares), without the consent of
the Rights Agent or of the holder of any other Rights Certificate (or, prior to
the Distribution Date, of the Common Shares), may, on his own behalf and for
his own benefit, enforce, and may institute and maintain any suit, action or
proceeding against the Company to enforce, or otherwise act in respect of, his
right to exercise the Rights evidenced by such Rights Certificate in the manner
provided in such Rights 

 

26

 

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

 

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

 

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

 

(c)                                  subject
to Section 6(a) and Section 7(f) hereof, the
Company and the Rights Agent may deem and treat the Person in whose name the
Rights 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 Rights 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; and

 

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

 

Section 17.                                      Rights
Certificate Holder Not Deemed a Stockholder.  No holder, as such, of any Rights Certificate
shall be entitled to vote, receive dividends or be deemed for any purpose the
holder of the 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 Rights Certificate be construed to
confer upon the holder of any Rights Certificate, as such, any of the rights of
a stockholder of the Company or any right to vote for the election of directors
or upon any matter submitted to stockholders at any meeting thereof, or to give
or withhold consent to any corporate action, or to receive notice of meetings
or other actions affecting stockholders (except as provided in this Agreement),
or to receive dividends or 

 

27

 

subscription rights, or
otherwise, until the Rights evidenced by such Rights Certificate shall have
been exercised in accordance with the provisions hereof.

 

Section 18.                                      Concerning the
Rights Agent.

 

(a)                                  The
Company agrees to pay to the Rights Agent reasonable compensation for all
services rendered by it hereunder and, from time to time, on demand of the
Rights Agent, its reasonable expenses and counsel fees and other disbursements
incurred in the administration and execution of this Agreement and the exercise
and performance of its duties hereunder. The Company also agrees to indemnify
the Rights Agent for, and to hold it harmless against, any loss, liability or
expense, incurred without negligence, bad faith or willful misconduct on the part
of the Rights Agent, for anything done or omitted by the Rights Agent in
connection with the acceptance and administration of this Agreement, including,
without limitation, the costs and expenses of defending against any claim of
liability arising therefrom, directly or indirectly. The indemnity provided
hereby shall survive expiration of the Rights and the termination of this
Agreement.

 

(b)                                 The
Rights Agent shall be protected and shall incur no liability for, or in respect
of any action taken, suffered or omitted by it in connection with its
administration of this Agreement in reliance upon any Rights Certificate or
certificate for the Preferred Shares, 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 Section 20
hereof.

 

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

 

(a)                                  Any
Person into which the Rights Agent or any successor of the Rights Agent may be
merged or with which it may be consolidated, or any Person resulting from any
merger or consolidation to which the Rights Agent or any successor Rights Agent
shall be a party, or any Person succeeding to the stock transfer or corporate
trust powers of the Rights Agent or any successor Rights Agent, shall be the
successor to the Rights Agent under this 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 Rights 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 Rights
Certificates so countersigned; and in case at that time any of the Rights
Certificates shall not have been countersigned, any successor Rights Agent may
countersign such Rights Certificates either in the name of the predecessor
Rights Agent or in the name of the successor Rights Agent; and in all such
cases such Rights Certificates shall have the full force provided in the Rights
Certificates and in this Agreement.

 

(b)                                 In
case at any time the name of the Rights Agent shall be changed and at such time
any of the Rights Certificates shall have been countersigned but not delivered
the 

 

28

 

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

 

Section 20.                                      Duties of
Rights Agent.  The Rights
Agent undertakes only the duties and obligations specifically imposed by this
Agreement and no implied duties or obligations shall be read into this
Agreement against the Rights Agent, subject to the following terms and
conditions, by all of which the Company and the holders of Rights Certificates,
by their acceptance thereof, shall be bound:

 

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

 

(b)                                 Whenever
in the performance of its duties under this Agreement the Rights Agent shall
deem it necessary or desirable that any fact or matter (including, without
limitation, the identity of any Acquiring Person and the determination of
current per share market price) be proved or established by the Company prior
to taking or suffering any action hereunder, such fact or matter (unless other
evidence in respect thereof be herein specifically prescribed) may be deemed to
be conclusively proved and established by a certificate signed by any one of
the Chairman of the Board of Directors, the President, any Vice President, the
Treasurer, the Controller 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 liable hereunder to the 
Company and any other Person only for its own negligence, bad faith or
willful misconduct.

 

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

 

(e)                                  The
Rights Agent shall not be under any responsibility in respect of the validity
of this Agreement or the execution and delivery hereof (except the due
execution hereof by the Rights Agent) or in respect of the validity or
execution of any Rights Certificate (except its countersignature thereof); nor
shall it be responsible for any breach by the Company of any covenant or
condition contained in this Agreement or in any Rights Certificate; nor shall
it be responsible for any change in the exercisability of the Rights (including
the Rights becoming void pursuant to Section 7(e)) or any
adjustment in the terms of the Rights (including the manner, method or amount
thereof) provided for in Section 3, Section 11, Section 13,
Section 23 and Section 24, or the ascertaining of the existence
of facts that would require any such change or adjustment (except with respect
to the exercise of Rights evidenced by Rights Certificates after receipt of a
certificate furnished pursuant to Section 12, describing such
change or adjustment); 

 

29

 

nor shall it by any act
hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any Preferred Shares, Common Shares, common
share equivalents or other securities to be issued pursuant to this Agreement
or any Rights Certificate or as to whether any Preferred Shares, Common Shares,
common share equivalents or other securities will, when issued, be validly
authorized and issued, fully paid and nonassessable.

 

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

 

(g)                                 The
Rights Agent is hereby authorized and directed to accept instructions with
respect to the performance of its duties hereunder from any person reasonably
believed by the Rights Agent to be one of the Chairman of the Board of
Directors, the President, any Executive Vice President, the Secretary, the
Controller 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 under this
Rights Agreement and the date on and/or after which such action shall be taken
or such omission shall be effective. The Rights Agent shall not be liable for
any action taken by, or omission of, the Rights Agent in accordance with a
proposal included in any such application on or after the date specified in
such application (which date shall not be less than five Business Days after
the date any officer of the Company actually received such application, unless
any such officer shall have consented in writing to an earlier date) unless,
prior to taking any such action (or the effective date in the case of an
omission), the Rights Agent shall have received written instructions in
response to such application specifying the action to be taken or omitted.

 

(h)                                 The
Rights Agent and any 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.
Nothing herein shall preclude the Rights Agent from acting in any other
capacity for the Company or any other Person.

 

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

 

(j)                                     If,
with respect to any Rights Certificate surrendered to the Right Agent for
exercise or transfer, the certificate contained in the form of assignment or
the form of election to purchase set forth on the reverse thereof, as the case
may be, has not been completed to certify the holder is not an Acquiring Person
(or an Affiliate or Associate thereof), the Rights Agent 

 

30

 

shall not take any further
action with respect to such requested exercise of transfer without first
consulting with the Company.

 

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

 

(l)                                     The
Rights Agent shall have no responsibility to the Company, any holders of Rights
or any holders of shares of Common Stock for interest or earnings on any moneys
held by the Rights Agent pursuant to this Agreement.

 

(m)                               The
Rights Agent shall not be required to take notice or be deemed to have notice
of any event or condition hereunder, including, but not limited to, a
Distribution Date, a Redemption Date, any adjustment of the Purchase Price of
the Common Stock, and adjustment to the Purchase Price of the Preferred Shares,
the existence of an Acquiring Person or any other event or condition that may
require action by the Rights Agent, unless the Rights Agent shall be
specifically notified in writing of such event or condition by the Company, and
all notices or other instruments required by this Agreement to be delivered to
the Rights Agent must, in order to be effective, be received by the Rights
Agent as specified in Section 26 hereof, and in the absence of such
notice so delivered, the Rights Agent may conclusively assume no such event or
condition exists.

 

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’ prior 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, if such resignation occurs after the
Distribution Date, to the holders of the Rights Certificates by first-class
mail. The Company may remove the Rights Agent or any successor Rights Agent
upon 30 days’ prior 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, if such
removal occurs after the Distribution Date, to the holders of the Rights
Certificates by first-class mail. If the Rights Agent shall resign or be
removed or shall otherwise become incapable of acting, the Company shall
appoint a successor to the Rights Agent. If the Company shall fail to make such
appointment within a period of 30 days after giving notice of such removal or
after it has been notified in writing of such resignation or incapacity by the
resigning or incapacitated Rights Agent or by the holder of a Rights
Certificate (who shall, with such notice, submit his Rights Certificate for
inspection by the Company), then the registered holder of any Rights
Certificate may apply to any court of competent jurisdiction for the
appointment of a new Rights Agent. Any successor Rights Agent, whether
appointed by the Company or by such a court, shall be (a) a Person
organized and doing business under the laws of the United States or any State
thereunder, in good standing, which is authorized under such laws to exercise
corporate trust or stock transfer powers and is subject to supervision or
examination by federal or state authority, and which at the time of its
appointment as Rights Agent has, or with its parent has a combined capital
surplus of at least $50,000,000 or (b) an Affiliate of a Person described
in clause (a) of this sentence. After appointment, the successor Rights
Agent shall be vested with the same powers, rights, 

 

31

 

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, if such
appointment occurs after the Distribution Date, mail a notice thereof in
writing to the registered holders of the Rights Certificates. Failure to give
any notice provided for in this Section 21, however, or any defect
therein, shall not affect the legality or validity of the resignation or
removal of the Rights Agent or the appointment of the successor Rights Agent,
as the case may be.

 

Section 22.                                      Issuance of New
Rights Certificates. 
Notwithstanding any of the provisions of this Agreement or of the Rights
to the contrary, the Company may, at its option, issue new Rights Certificates
evidencing Rights in such forms as may be approved by the Board of Directors to
reflect any adjustment or change in the Purchase Price per share and the number
or kind of class of shares or other securities or property purchasable under
the Rights Certificates made in accordance with the provisions of this
Agreement.  In addition, in connection
with the issuance or sale of Common Shares (other than upon exercise of a
Right) and prior to the redemption or expiration of the Rights, the Company (a) shall,
with respect to Common Shares so issued or sold pursuant to the exercise of
stock options or under any employee plan or arrangement, or upon the exercise,
conversion or exchange of securities hereinafter issued by the Company, and (b) may,
in any other case, if deemed necessary or appropriate by the Board, issue
Rights Certificates representing the appropriate number of Rights in connection
with such issuance or sale; provided, however, that (i) no
such Rights Certificate shall be issued if, and to the extent that, the Company
shall be advised by counsel that such issuance would create a significant risk
of material adverse tax consequences to the Company or the Person to whom such
Rights Certificates would be issued, and (ii) no such Rights Certificates
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 may, at its option, at any time prior to the earlier of (i) the
Close of Business on the tenth Business Day following the Shares Acquisition
Date (or, if the Shares Acquisition Date shall have occurred prior to the Record
Date, the Close of Business on the tenth Business Day following the Record
Date), or (ii) the Close of Business on the Final Expiration Date (the “Redemption
Period”), (x) cause the Company to redeem all but not less than all
the then outstanding Rights at a redemption price of $0.001 per Right, as such
amount may be appropriately adjusted 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”) or (y) amend
this Agreement to change the Final Expiration Date to another date, including
without limitation an earlier date; provided, however, that, if
the Board of Directors authorizes redemption of the Rights on or after the time
a Person becomes an Acquiring Person, then such authorization shall require the
concurrence of two-thirds of the authorized number of members of the
Board.  Notwithstanding anything
contained in this Agreement to the contrary, the Rights shall not be
exercisable after the first occurrence of a 

 

32

 

Section 11(a)(ii) Event
or a Section 13 Event until such time as the Company’s right of redemption
hereunder has expired.  The redemption of
the Rights or amendment of this Agreement to change the Final Expiration Date
by the Board of Directors pursuant to this paragraph (a) 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. 
The Company may, at its option, pay the Redemption Price in cash, Common
Shares (based on the current market price of the Common Shares at the time of
redemption, as defined in Section 11(d)(i) hereof) or any
other form of consideration deemed appropriate by the Board of Directors.

 

(b)                                 Immediately
upon the action of the Board of Directors ordering the redemption of the
Rights, evidence of which shall have been filed with the Rights Agent, and
without any further action and without any notice, the right to exercise the Rights
shall terminate and the only right thereafter of the holders of Rights shall be
to receive the Redemption Price. 
Promptly after the action of the Board ordering the redemption of the
Rights, the Company shall give notice of such redemption to the Rights Agent
and the holders of the then outstanding Rights by mailing such notice to all
such holders 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; provided, however, that
the failure to give, or any defect in, any such notice shall not affect the
validity of such redemption.  Any notice
which is mailed in the manner herein provided shall be deemed given, whether or
not the holder receives the notice.  Each
such notice of redemption shall state the method by which the payment of the
Redemption Price will be made.

 

Section 24.                                      Exchange.

 

(a)                                  The
Board of Directors of the Company may, at its 
option, at any time after any Person becomes an Acquiring Person,
exchange all or part of the then outstanding and exercisable Rights (which
shall not include Rights that have become void pursuant to the provisions of Section 7(e) hereof)
for shares of Common Stock at an exchange ratio of one share of Common Stock
per Right, appropriately adjusted to reflect any stock split, stock dividend or
similar transaction occurring after the date hereof (such exchange ratio being
hereinafter referred to as the “Exchange Ratio”). Notwithstanding the
foregoing, the Board of Directors shall not be empowered to effect such
exchange at any time after any Person (other than an Exempt Person), together
with all Affiliates and Associates of such Person, becomes the Beneficial Owner
of Common Shares aggregating 50% or more 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 to paragraph (a) of this Section 24 and
without any further action and without any notice, the right to exercise such
Rights shall terminate and the only right thereafter of a holder of such Rights
shall be to receive that number of shares of Common Stock equal to the number
of such Rights held by such holder multiplied by the Exchange Ratio. The
Company shall promptly give public notice of any such exchange; provided,
however, that the failure to give, or any defect in, such notice shall
not affect the validity of such exchange. The Company shall promptly mail a
notice of any such exchange to all of the holders of the Rights so exchanged at
their last addresses as they appear upon the registry books of the Rights
Agent. Any notice which is mailed in the manner herein provided shall be deemed
given, whether or not the holder receives the notice. Each such notice of
exchange will state the method 

 

33

 

by which the exchange of the
shares of Common Stock for Rights will be effected and, in the event of any
partial exchange, the number of Rights which will be exchanged. Any partial
exchange shall be effected pro rata based on the number of Rights (other than
Rights which have become void pursuant to the provisions of Section 7(e) hereof)
held by each holder of Rights.

 

(c)                                  In
any exchange pursuant to this Section 24, the Company, at its
option, may substitute common share equivalents (as defined in Section 11(a)(iii) hereof)
for Common Shares exchangeable for Rights, at the initial rate of one common
share equivalent for each Common Share, as appropriately adjusted to reflect
adjustments in dividend, liquidation and voting rights of common share
equivalents pursuant to the terms thereof, so that each common share equivalent
delivered in lieu of each Common Share shall have essentially the same dividend,
liquidation and voting rights as one Common Share.

 

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

 

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

 

Section 25.                                      Notice of
Certain Events.

 

(a)                                  In
case the Company shall at any time after the earlier of the Distribution Date
or the Shares Acquisition Date propose (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 holder of its Preferred Shares (other than a regular
quarterly cash dividend out of earnings or retained earnings of the Company), (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 the liquidation, dissolution or winding up of the Company, or (v) 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 each holder of a Rights
Certificate, in accordance with Section 26 hereof, a notice of such
proposed action, which shall specify the record date for the stock dividend or
distribution of rights or warrants, or the date on which such liquidation,
dissolution or winding up is to take 

 

34

 

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 described in Section 11(a)(ii) or Section 13
shall occur then the Company shall as soon as practicable thereafter give to
each holder of a Rights Certificate (or if occurring prior to the Distribution
Date, the holders of Common Shares) in 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) and
Section 13 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
Rights Certificate to or on the Company shall be sufficiently given or made if
sent by first-class mail, postage prepaid, addressed (until another address is
filed in writing with the Rights Agent) as follows:

 

CIBER, Inc.

5251 DTC Parkway, Suite 1400

Englewood, Colorado 80111

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

 

Wells Fargo Bank, National Association

161 North Concord Exchange

South St. Paul, Minnesota 55075

Attention: Stock Transfer Administration

 

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

 

Section 27.                                      Supplements And
Amendments.  Except as
provided in the penultimate sentence of this Section 27, for so
long as the Rights are then redeemable, the Company may in its sole and
absolute discretion, and the Rights Agent shall if the Company so directs,
supplement or amend any provision of this Agreement in any respect without the
approval of any holders of the Rights. At any time when the Rights are no
longer redeemable, except as provided in the penultimate sentence of this Section 27,
the Company may, and the Rights Agent shall, if 

 

35

 

the Company so directs,
supplement or amend this Agreement without the approval of any holders of
Rights Certificates in order to (i) cure any ambiguity, (ii) correct
or supplement any provision contained herein which may be defective or
inconsistent with any other provisions herein, (iii) shorten or lengthen
any time period hereunder, or (iv) change or supplement the provisions
hereunder in any manner which the Company may deem necessary or desirable;
provided that no such supplement or amendment shall adversely affect the
interests of the holders of Rights as such (other than an Acquiring Person or
an Affiliate or Associate of an Acquiring Person), and no such amendment may
cause the Rights again to become redeemable or cause the Agreement again to
become amendable other than in accordance with this sentence. Notwithstanding
anything contained in this Agreement to the contrary, no supplement or
amendment shall be made which changes the Redemption Price. Upon the delivery
of a certificate from an appropriate officer of the Company which states that
the proposed supplement or amendment is in compliance with the terms of this Section 27,
the Rights Agent shall execute such supplement or amendment; provided, however,
that the Rights Agent may, but shall not be obligated to, enter into any such
supplement or amendment which affects the Rights Agent’s own rights, duties or
immunities under this Agreement. Prior to the consent of the Rights Agent to
any supplement or amendment, the Rights Agent may require delivery to it of an
opinion of counsel stating that such supplement or amendment is authorized or
permitted by the Agreement, and will, upon execution and delivery thereof, be
valid and binding upon the Company in accordance with its terms.

 

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 other than the Company,
the Rights Agent and the registered holders of the Rights 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 Rights Certificates (and, prior to the Distribution
Date, the Common Shares).

 

Section 30.                                      Severability.  If any term, provision, covenant or
restriction of this Agreement or applicable to this Agreement is held by a
court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.

 

Section 31.                                      Governing Law.  This Agreement and each Rights Certificate
issued hereunder shall be deemed to be a contract made under the laws of the
State of Delaware and for all purposes shall be governed by and construed in
accordance with the laws of such State applicable to contracts 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.

 

36

 

Section 33.                                      Descriptive
Headings.  Descriptive headings of
the  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.                                      Determinations
and Actions by the Board of Directors, etc. 
For all purposes of this Agreement, any calculation of the number of
Common Shares outstanding at any particular time, including for purposes of
determining the particular percentage of such outstanding Common Shares of which
any Person is the Beneficial Owner, shall be made in accordance with the last
sentence of Rule 13d-3(d)(1)(i) of the General Rules and
Regulations under the Exchange Act.  The
Board of Directors (with, where specifically provided for herein, the concurrence
of two-thirds of the authorized number of members of the Board of Directors)
shall have the exclusive power and authority to administer this Agreement and
to exercise all rights and powers specifically granted to the Board of
Directors (with, where specifically provided for herein, the concurrence of
two-thirds of the authorized number of members of the Board of Directors) or to
the Company, or as may be necessary or advisable in the administration of this
Agreement, including, without limitation, the right and power to (i) interpret
the provisions of this Agreement, and (ii) make all determinations deemed
necessary or advisable for the administration of this Agreement (including
without limitation a determination to redeem or not redeem the Rights or to
amend the Agreement).  All such actions,
calculations, interpretations and determinations which are done or made by the
Board of Directors (with, where specifically provided for herein, the
concurrence of two-thirds of the authorized number of members of the Board of
Directors) in good faith, shall be final, conclusive and binding on the
Company, the Rights Agent, the holders of the Rights and all other Persons.

 

[Remainder of Page Intentionally Left
Blank]

 

37

 

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

 

 

	
   

  	
  CIBER, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mac J.
  Slingerlend

  
	
   

  	
   

  	
  Mac J.
  Slingerlend

  
	
   

  	
   

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, NATIONAL 

  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven
  J. Hoffman

  
	
   

  	
   

  	
  Steven J.
  Hoffman

  
	
   

  	
   

  	
  Assistant
  Vice President

  

 

[Signature Page to Rights
Agreement]

 

 

EXHIBIT A

 

FORM OF

CIBER, INC.

 

AMENDED

CERTIFICATE OF DESIGNATIONS

OF

SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

 

(Pursuant to Section 151 of the Delaware
General Corporation Law)

 

CIBER, Inc., a corporation organized and existing under the General
Corporation Law of the State of Delaware (hereinafter called the “Company”),
hereby certifies that (i) no shares of the class or series described in
this Amended Certificate of Designations of Series A Junior Participating
Preferred Stock have been issued and (ii) the following resolutions were
adopted by the Board of Directors of the Company as required by Section 151
of the General Corporation Law at a meeting duly called and held on April 29,
2008:

 

RESOLVED, that pursuant to the authority granted to and vested in the
Board of Directors of the Company (hereinafter called the “Board of Directors”
or the “Board”) in accordance with the provisions of the Certificate of
Incorporation, as amended to date (hereinafter called the “Certificate of
Incorporation”), the Board of Directors, on August 31, 1998, created a
series of preferred stock, par value $.01 per share, of the Company and the
Company thereafter filed a Certificate of Designations with the Secretary of
State of the State of Delaware to state the designation and number of shares,
and fix the relative rights, preferences, and limitations thereof.

 

RESOLVED, that pursuant to the authority granted to and vested in the
Board in accordance with the provisions of the Certificate of Incorporation,
the Board hereby amends the designation and number of shares, and fixes the
relative rights, preferences, and limitations thereof as follows:

 

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

 

A-1

 

Section 2.                                            DIVIDENDS
AND DISTRIBUTIONS.

 

(A)                              Subject
to the rights of the holders of any shares of any series of preferred stock of
the Company (the “Preferred Stock”) (or any similar stock) ranking prior and
superior to the Series A Preferred Stock with respect to dividends, the
holders of shares of Series A Preferred Stock, in preference to the
holders of Common Stock, par value $.01 per share of the Company (the “Common
Stock”), and of any other stock of the Company ranking junior to the Series A
Preferred Stock, shall be entitled to receive, when, as and if declared by the
Board of Directors out of funds legally available for the purpose, semi-annual
dividends payable in cash on the first day of June and December in
each year (each such date being referred to herein as a “Dividend Payment Date”),
commencing on the first Dividend Payment Date after the first issuance of a
share or fraction of a share of Series A Preferred Stock, in an amount per
share (rounded to the nearest cent) equal to the greater of (a) $1 or (b) subject
to the provision for adjustment hereinafter set forth, 1,000 times the
aggregate per share amount of all cash dividends, and 1,000 times the aggregate
per share amount (payable in kind) of all non-cash dividends or other
distributions other than a dividend payable in shares of Common Stock, declared
on the Common Stock since the immediately preceding Dividend Payment Date or,
with respect to the first Dividend Payment Date, since the first issuance of
any share or fraction of a share of Series A Preferred Stock. In the event
the Company shall at any time 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 the classification
or otherwise than by payment of a dividend in shares of Common Stock) into a
greater or lesser number of shares of Common Stock, then in each such case the
amount to which holders of shares of Series A Preferred Stock were
entitled immediately prior to such event under clause (b) of the preceding
sentence shall be adjusted by multiplying such amount by a fraction, the
numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

 

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

 

(C)                                Dividends
shall begin to accrue and be cumulative on outstanding shares of Series A
Preferred Stock from the Dividend Payment Date next preceding the date of issue
of such shares, unless the date of issue of such shares is prior to the record
date for the first Dividend Payment Date, in which case dividends on such
shares shall begin to accrue from the date of issue of such shares, or unless
the date of issue is a Dividend Payment Date or is a date after the record date
for the determination of holders of shares of Series A Preferred Stock
entitled to receive a semi-annual dividend and before such Dividend Payment
Date, in either of which events such dividends shall begin to accrue and be
cumulative from such Dividend Payment Date. Accrued but unpaid dividends shall
not bear interest. Dividends paid on the shares of Series A Preferred
Stock in an amount less than the total
amount of such dividends at 

 

A-2

 

the time accrued and payable on such shares
shall be allocated pro rata on a share-by-share basis among all such shares at
the time outstanding. The Board of Directors may fix a record date for the
determination of holders of shares of Series A Preferred Stock entitled to
receive payment of a dividend or distribution declared thereon, which record
date shall be not more than 60 days prior to the date fixed for the payment
thereof.

 

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

 

(A)                              Subject
to the provision for adjustment hereinafter set forth and except as otherwise
provided in the Certificate of Incorporation or required by law, each share of Series A
Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters
upon which the holders of the Company are entitled to vote. In the event the
Company 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 A Preferred
Stock were entitled immediately prior to such event shall be adjusted by
multiplying such number by a fraction, the numerator of which is the number of
shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

 

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

 

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

 

Section 4.                                            CERTAIN
RESTRICTIONS.

 

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

 

(i)                                   declare or pay
dividends, or make any other distributions, on any shares of stock ranking
junior (as to dividends) to the Series A Preferred Stock;

 

(ii)                                declare or pay
dividends, or make any other distributions, on any shares of stock ranking on a
parity (as to dividends) with the Series 

 

A-3

 

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

 

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

 

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

 

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

 

Section 5.                                            REACQUIRED
SHARES.  Any shares of Series A
Preferred Stock purchased or otherwise acquired by the Company in any manner
whatsoever shall be retired and canceled promptly after the acquisition thereof.

 

Section 6.                                            LIQUIDATION,
DISSOLUTION OR WINDING UP.  Upon any
liquidation, dissolution or winding up of the Company, no distribution shall be
made (A) to the holders of the Common Stock or of shares of any other
stock of the Company ranking junior upon liquidation, dissolution or winding up
to the Series A Preferred Stock unless, prior thereto, the holders of
shares of Series A Preferred Stock shall have received the greater of (x) $1,000
per share, plus an amount equal to accrued and unpaid dividends and
distributions thereon, whether or not declared, to the date of such payment, or
(y) an aggregate amount per share, subject to the provision for adjustment
hereinafter set forth, equal to 1,000 times the aggregate amount to be
distributed per share to holders of shares of Common Stock, or (B) to the
holders of shares of stock ranking on a parity upon liquidation, dissolution or
winding up with the Series A Preferred Stock, except distributions made
ratably on the Series A Preferred Stock and all such parity stock in
proportion to the total amounts to which the holders of all such shares are
entitled upon such 

 

A-4

 

liquidation, dissolution or winding up. In the event the Company shall
at any time declare or pay any dividend on the Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then in each
such case the aggregate amount to which holders of shares of Series A
Preferred Stock were entitled immediately prior to such event under the proviso
in clause (A) of the preceding sentence shall be adjusted by multiplying
such amount by a fraction the numerator of which is the number of shares of
Common Stock outstanding immediately after such event and the denominator of
which is the number of shares of Common Stock that were outstanding immediately
prior to such event.

 

Section 7.                                            CONSOLIDATION,
MERGER, ETC.  In case the Company shall
enter into any consolidation, merger, combination or other transaction in which
the shares of Common Stock are exchanged for or changed into other stock or
securities, cash and/or any other property, then in any such case each share of
Series A Preferred Stock shall at the same time be similarly exchanged for
or changed into such other stock or securities, cash and/or any other property
in an amount per share (subject to the provision for adjustment hereinafter set
forth) equal to 1,000 times the aggregate amount of stock, securities, cash
and/or any other property (payable in kind), as the case may be, into which or
for which each share of Common Stock is changed or exchanged. In the event the
Company 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 A Preferred Stock shall be adjusted by
multiplying such amount by a fraction, the numerator of which is the number of
shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

 

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

 

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

 

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

 

*  *  *  * 
*  *  *

 

A-5

 

IN WITNESS WHEREOF, this
Amended Certificate of Designations is executed on behalf of the Company by its
President, Chief Executive Officer and Secretary on this 2nd day of May, 2008.

 

	
   

  	
   

  
	
   

  	
  Mac J.
  Slingerlend

  
	
   

  	
  President,
  Chief Executive Officer and 

  
	
   

  	
  Secretary

  

 

A-6

 

EXHIBIT B

 

FORM OF RIGHTS CERTIFICATE

 

	
  Certificate No. R                                               

  	
   

  	
                                           Rights

  

 

NOT EXERCISABLE AFTER MAY 2, 2018 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. UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT,
RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO BECOMES AN ACQUIRING PERSON
(AS DEFINED IN THE RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES THEREOF WILL
BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.

 

[THE RIGHTS REPRESENTED BY THIS RIGHTS
CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN
ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH
TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). 
ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME
NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF SUCH
RIGHTS AGREEMENT.](1)

 

Rights Certificate

 

CIBER, Inc.

 

This Rights Certificate 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 that certain First Amended and Restated Rights
Agreement, dated as of May 2, 2008 (the “Rights Agreement”), between CIBER, Inc.,
a Delaware corporation (the “Company”), and Wells Fargo Bank, National
Association, a national banking association (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., Denver time, on May 2,
2018 at the office or agency of the Rights Agent designated for such purpose,
or of its successor as Rights Agent, one one-thousandth of a fully paid and
non-assessable share of Series A Junior Participating Preferred Stock, par
value $.01 per share (the “Preferred Shares”), of the Company, at a purchase
price of $37.00 per one one-thousandth of a Preferred Share (the “Purchase
Price”), upon presentation and surrender of this Rights Certificate with the Form of
Election to Purchase duly executed. The number of Rights evidenced by this
Rights Certificate (and the number 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 May 2,
2008, based on the Preferred Shares as constituted at such date. As provided in
the Rights Agreement, the 

 

(1) The
portion of the legend in brackets shall be inserted only if applicable.

 

B-1

 

Purchase Price, the number of one one-thousandths of a Preferred Share
which may be purchased upon the exercise of the Rights and the number of Rights
evidenced by this Rights Certificate are subject to modification and adjustment
upon the happening of certain events.

 

This Rights Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, as the same may be amended from time to
time, which terms, provisions and conditions are hereby incorporated herein by
reference and made a part hereof and to which Rights Agreement reference is
hereby made for a full description of the rights, limitations of rights,
obligations, duties and immunities hereunder of the Rights Agent, the Company
and the holders of the Rights Certificates. Copies of the Rights Agreement are
on file at the principal executive offices of the Company and the designated
office or agency of the Rights Agent. The Company will mail to the holder of
this Rights Certificate a copy of the Rights Agreement without charge after
receipt of a written request therefor.

 

This Rights Certificate, with or without other Rights Certificates,
upon surrender at the office or agency of the Rights Agent designated for such
purpose, may be exchanged for another Rights Certificate or Rights Certificates
of like tenor and date evidencing Rights entitling the holder to purchase a
like aggregate number of Preferred Shares as the Rights evidenced by the Rights
Certificate or Rights Certificates surrendered shall have entitled such holder
to purchase. If this Rights Certificate shall be exercised in part, the holder
shall be entitled to receive upon surrender hereof another Rights Certificate
or Rights Certificates for the number of whole Rights not exercised.

 

Subject to the provisions of the Rights Agreement, the Rights evidenced
by this Rights 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
$.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 one-thousandth of a Preferred Share, which may, at the
election of the Company, be evidenced by depositary receipts), but in lieu
thereof a cash payment will be made, as provided in the Rights Agreement.

 

No holder of this Rights Certificate, as such, 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 Rights Certificate
shall have been exercised as provided in the Rights Agreement. This Rights
Certificate shall not be valid or obligatory for any purpose until it shall
have been countersigned by the Rights Agent.

 

 [Remainder of Page Intentionally Left
Blank]

 

B-2

 

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

 

	
  ATTEST:

  	
   

  	
  CIBER, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
  Name:

  
	
   

  	
  Title:

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  COUNTERSIGNED:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WELLS FARGO
  BANK, NATIONAL 

  
	
   

  	
   

  	
  ASSOCIATION,
  AS RIGHTS AGENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

B-3

 

FORM OF REVERSE SIDE OF RIGHTS
CERTIFICATE

 

FORM OF ASSIGNMENT

 

(To be executed by the registered holder if
such holder desires to transfer the Rights Certificate)

 

FOR VALUE RECEIVED
                                                    
hereby sells, assigns and transfers unto  

	
   

  
	
  (Please print name,
  address and social security number of transferee)

  

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

 

	
  Dated:

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  

 

Signature Medallion Guaranteed:

 

Signatures must be guaranteed by an Eligible Guarantor Institution, as
defined by SEC Rule 17Ad- 15 (12 CFR 240.17Ad-15) or any similar rule which
the Rights Agent deems applicable.

 

	
   

  
	
  (To be
  completed)

  

 

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

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  

 

B-4

 

FORM OF ELECTION TO PURCHASE

 

 (To be
executed if holder desires to exercise Rights represented by the Rights
Certificate)

 

CIBER, Inc.:

 

This undersigned hereby irrevocably elects to exercise
                      
Rights represented by this Rights 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
  print name, address and social security number)

  

 

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

 

	
   

  
	
  (Please
  print name, address and social security number)

  

 

	
  Dated:

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  

 

(Signature must conform to holder specified
on Rights Certificate)

 

Signature Medallion Guaranteed:

 

Signatures must be guaranteed by a member firm of a registered national
securities exchange, a member of the Financial Industry Regulatory Authority,
or a commercial bank or trust company having an office or correspondent in the
United States.

 

	
   

  
	
  (To be
  completed)

  

 

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

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  

 

B-5

 

NOTICE

 

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

 

In the event the certification set forth above in the Form of
Assignment or the Form of Election to Purchase, as the case may be, is not
completed, the Company and the Rights Agent will deem the beneficial owner of
the Rights evidenced by this Rights 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.

 

B-6

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