Document:

Exhibit
4.1

 

TAX BENEFIT PRESERVATION PLAN

Dated as of March 3, 2020 by 

 

and between

 

AVIAT NETWORKS, INC.

 

and 

 

COMPUTERSHARE INC.,

as Rights Agent

 

 

     

     

    
	 	Page
	Section 1. Certain Definitions	2
	Section 2. Appointment of Rights Agent	9
	Section 3. Issuance of Rights Certificates	10
	Section 4. Form of Rights Certificates	12
	Section 5. Countersignature and Registration	12
	Section 6. Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or

                  Stolen Rights Certificates	13
	Section 7. Exercise of Rights; Exercise Price; Expiration Date of Rights	14
	Section 8. Cancellation and Destruction of Rights Certificates	17
	Section 9. Reservation and Availability of Preferred Shares	17
	Section 10. Record Date for Securities Issued	18
	Section 11. Adjustment of Exercise Price, Number and Kind of Shares or Number of Rights	19
	Section 12. Certificate of Adjusted Exercise Price or Number of Shares	25
	Section 13. Consolidation, Merger or Sale or Transfer of Assets, Cash Flow or Earning Power	26
	Section 14. Fractional Rights and Fractional Shares	29
	Section 15. Rights of Action	30
	Section 16. Agreement of Rights Holders	30
	Section 17. Holder of Rights Certificate Not Deemed to be a Stockholder	31
	Section 18. Concerning the Rights Agent	31
	Section 19. Merger, Consolidation or Change of Name of Rights Agent	32
	Section 20. Duties of Rights Agent	32
	Section 21. Change of Rights Agent	35
	Section 22. Issuance of New Rights Certificates	36
	Section 23. Redemption	36
	Section 24. Exchange	37
	Section 25. Process to Seek Exemption Prior to Trigger Event	40
	Section 26. Notice of Certain Events	42
	Section 27. Notices	43
	Section 28. Supplements and Amendments	44
	Section 29. Successors	44
	Section 30. Determinations and Actions by the Board	44
	Section 31. Benefits of this Plan	44
	Section 32. Severability	45
	Section 33. Governing Law; Exclusive Jurisdiction	45
	Section 34. Counterparts	45
	Section 35. Descriptive Headings; Interpretation	46
	Section 36. Costs of Enforcement	46
	Section 37. Force Majeure	46
	Section 38. USA PATRIOT Act	47

 

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	 	Page
	EXHIBITS	 
	 	 
	Exhibit A   Form of Certificate of Designation of Rights, Preferences and Privileges of Series A Participating 

                  Preferred Stock	A-1
	Exhibit B   Form of Rights Certificate	B-1
	Exhibit C   Form of Summary of Rights	C-1

 

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TAX BENEFIT PRESERVATION
PLAN

 

This TAX BENEFIT PRESERVATION
PLAN (this “Plan”), dated as of March 3, 2020, is by and between Aviat Networks, Inc., a Delaware corporation
(the “Company”), and Computershare Inc., a Delaware corporation, as rights agent (the “Rights Agent”).
All capitalized terms used in this Plan have the meanings given thereto in Section 1.

 

 

RECITALS

 

WHEREAS, on March 3, 2020
(the “Rights Dividend Declaration Date”), the Board of Directors of the Company (the “Board”)
adopted this Plan and authorized and declared a dividend of one preferred share purchase right (a “Right”) for
each Common Share outstanding as of the Close of Business on March 13, 2020 (the “Record Date”), each Right
initially representing the right to purchase one one-thousandth of a Preferred Share (as such number may be adjusted pursuant to
the provisions of this Plan) and having the rights, preferences and privileges set forth in the form of Certificate of Designation
of Rights, Preferences and Privileges of Series A Participating Preferred Stock attached hereto as Exhibit A, upon the terms and
subject to the conditions set forth herein;

 

WHEREAS,
the Board further authorized and directed the issuance of one Right (as such number may be adjusted pursuant to the provisions
of this Plan) with respect to each Common Share that becomes outstanding (whether as an original issuance or from the Company’s
treasury) between the Record Date and the earlier of the (a) Distribution Date and (b) Expiration Date, and in certain circumstances
after the Distribution Date;

 

WHEREAS, if the Company experiences
an “ownership change,” as defined in Section 382 of the Internal Revenue Code of 1986, as amended, or any successor
statute (the “Code”), its ability to use Tax Benefits (as defined below) for income tax purposes could be substantially
limited or lost altogether; and

 

WHEREAS, the Company views
the Tax Benefits as highly valuable assets of the Company that are likely to inure to the benefit of the Company and its stockholders,
and the Company believes that it is in the best interests of the Company and its stockholders that the Company provide for the
protection of the Tax Benefits on the terms and conditions set forth herein.

    	 

     

    

AGREEMENT

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

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

(a)       “Acquiring
Person” means any Person who or that,
together with all Affiliates and Associates
of such Person, is the Beneficial
Owner of 4.9% or more of
the Common Shares then outstanding,
but not including (i) any Exempt Person; or
(ii) any Existing Holder, unless and until
such time as such Existing Holder becomes the
Beneficial Owner of one
or more additional Common
Shares (other than pursuant
to a dividend or distribution paid or made
by the Company on the outstanding Common Shares
in Common Shares or pursuant
to a split or subdivision of the outstanding
Common Shares), unless upon
becoming the Beneficial Owner of
such additional Common Shares, such
Existing Holder does not
Beneficially Own 4.9% or
more of the Common Shares then
outstanding. Notwithstanding the
foregoing, no Person will be
deemed to be an Acquiring Person as the
result of an acquisition of Common
Shares by an Exempt Person that,
by reducing the number of Common
Shares then outstanding, increases
the proportionate number of Common Shares
that are Beneficially Owned by
such Person to 4.9% or more of the Common
Shares then outstanding; provided,
however, that if a Person
becomes the Beneficial
Owner of 4.9% or more of
the Common Shares then outstanding
solely as the result of
a reduction in the number of Common
Shares then outstanding due to an acquisition
of Common Shares by an Exempt
Person and, after such acquisition by such
Exempt Person, becomes the
Beneficial Owner of one
or more additional Common
Shares (other than pursuant
to a dividend or distribution paid or made
by the Company on the outstanding Common
Shares in Common Shares or pursuant
to a split or subdivision of the outstanding
Common Shares), then such Person
will be deemed to be an Acquiring Person
unless, upon becoming
the Beneficial Owner of such additional
Common Shares, such Person does not
Beneficially Own 4.9% or
more of the Common Shares then
outstanding. Notwithstanding the
foregoing, if the Board determines
in good faith that a Person who would
otherwise be an Acquiring Person has become
such inadvertently (including because (A)
such Person was unaware that it Beneficially
Owned a percentage of the Common
Shares that would otherwise cause
such Person to be an Acquiring Person or (B)
such Person was aware of the extent of the Common
Shares that it Beneficially Owned
but had no
actual knowledge of the consequences of
such Beneficial Ownership pursuant to
this Plan) and without
any intention of
changing or influencing control
of the Company, and if such Person
divested or divests (including by entering
into an agreement with the Company, which
agreement is satisfactory to the Board in its sole
discretion, to divest and subsequently divests
in accordance with the terms of
such agreement, without exercising or retaining
any power, including voting power, with respect to such Common
Shares) as promptly as practicable a sufficient
number of Common Shares so that
such Person would no longer
be an Acquiring Person, then such Person
will not be deemed to be
or to have become an Acquiring Person
at any time for any purposes of
this Plan. For all purposes of this Plan,
any calculation of the number of Common
Shares outstanding at any particular time,
including for purposes of
determining the particular
percentage of the outstanding Common
Shares of which any Person is the
Beneficial Owner, will be calculated
in accordance with Section 382
and the Treasury Regulations
promulgated thereunder.

(b)      “Adjustment Shares” has the
meaning set forth in Section 11(a)(ii).

(c)       “Affiliate”
and “Associate” have the respective
meanings ascribed to such terms in Rule 12b-2
of the General Rules and
Regulations promulgated under
the Exchange Act, as in effect on the
Rights Dividend Declaration Date and,
to the extent not included
within the foregoing,
will also include, with respect to any
Person, any other Person (other
than an Exempt Person or
an Existing Holder) whose Stock or other
securities (i) would be deemed owned
constructively or indirectly by such first Person for purposes of Section 382; (ii) would be deemed
owned by a single “entity” as defined in Treasury Regulations § 1.382-3(a)(1) in which both such first Person
and such other Person are included; or (iii) otherwise would be deemed aggregated with the Stock or other securities owned by
such first Person pursuant to the provisions of Section 382; provided, however, that a Person will not be deemed
to be an Affiliate or Associate of another Person solely because either or both such Persons are or were directors of the Company.

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(d)       A
Person will be deemed to be the “Beneficial
Owner” of, and will be deemed
to “Beneficially Own”
and have “Beneficial Ownership”
of, any securities:

(i)       that such
Person or any of such
Person’s Affiliates or Associates, directly or
indirectly, owns or has the
legal, equitable or contractual right or obligation to acquire (whether directly or indirectly
and whether exercisable immediately or only after the passage of time, compliance with
regulatory requirements, satisfaction of one or more conditions (whether or not within the control of such
Person) or otherwise) (A) pursuant to any agreement,
arrangement or understanding whether or not in
writing (other than customary
agreements with and between underwriters and
selling group members with respect to a bona fide public offering of securities);
(B) upon the exercise of any
conversion rights, exchange rights, rights
(other than the Rights),
warrants or options, or otherwise; (C) pursuant
to the power to revoke a trust,
discretionary account or similar arrangement; (D) pursuant
to the power to terminate a repurchase or similar
so-called “stock borrowing” agreement, arrangement or
understanding; (E) pursuant to the automatic
termination of a trust, discretionary account
or similar arrangement; or (F) any securities (including rights, options or warrants) that are convertible
or exchangeable into, or exercisable
for, Common Shares until such time as
such securities are converted, exchanged
or exercised, except to the extent
that the acquisition or transfer of securities (including rights, options or
warrants) would be treated as
exercised on the date of its acquisition
or transfer pursuant to Treasury Regulations
 § 1.382-4(d); provided, however, that a Person will not be deemed pursuant to this Section 1(d)(i) to be
the Beneficial Owner of, or to Beneficially Own, securities (1) 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; (2) issuable upon the exercise of Rights at any time prior to the occurrence of a Triggering Event; (3)
issuable upon the exercise of Rights from and after the occurrence of a Triggering Event if such Rights were acquired by such
Person or any of such Person’s Affiliates or Associates prior to the Distribution Date or pursuant to Section 3(a) or
Section 22 (the “Original Rights”) or pursuant to Section 11(g) in connection with an adjustment made with
respect to any Original Rights; or (4) that a Person or any of such Person’s Affiliates or Associates may be deemed to
have the right to acquire pursuant to any merger or other acquisition agreement between the Company and such Person (or one
or more of its Affiliates or Associates), or any tender, voting or support agreement entered into by such Person (or one or
more of its Affiliates or Associates) in connection therewith, if such agreement has been approved by the Board prior to
there being an Acquiring Person;

(ii)       that
such Person or any of
such Person’s Affiliates or Associates, directly
or indirectly, has the
right to vote (including
the power to vote or to direct the
voting of) or dispose
(or direct the disposition) of or has “beneficial
ownership” of (as determined pursuant
to Rule 13d-3 of the General Rules and Regulations promulgated under the Exchange Act, as in effect
on the Rights Dividend Declaration Date), including pursuant to any agreement, arrangement or understanding whether or not in writing;
provided, however, that a Person will not be deemed the Beneficial Owner of, or to Beneficially Own, any security
pursuant to this Section 1(d)(ii) as a result of an agreement, arrangement or understanding whether or not in writing to vote such
security if such agreement, arrangement or understanding (A) arises solely from a revocable proxy or consent given to such Person
in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable provisions of the
General Rules and Regulations promulgated under the Exchange Act; and (B) is not also then reportable by such Person on Schedule
13D pursuant to the Exchange Act (or any comparable or successor report);

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(iii)       that
are Beneficially Owned, directly or
indirectly, by any other Person (or
any of such Person’s Affiliates or
Associates) with which such first Person (or any of
such first Person’s Affiliates or Associates) has
any agreement, arrangement or understanding whether
or not in writing (other
than customary agreements with and between
underwriters and selling group members with respect to a bona
fide public offering of securities)
for the purpose of
acquiring, holding, voting (except pursuant
to a revocable proxy to the extent contemplated
by the proviso to Section 1(d)(ii))
or disposing of any securities of
the Company, but only if the effect
of such agreement, arrangement or understanding
is to treat such Persons as an “entity” pursuant
to Treasury Regulations § 1.382-3(a)(1); provided,
however, that no person who is an
officer, director or employee of an Exempt
Person will be deemed, solely by
reason of such person’s status or
authority as such, to be a Beneficial
Owner of, to have Beneficial Ownership
of or to Beneficially Own
any securities of the Company that are
Beneficially Owned (including in a fiduciary
capacity) by an Exempt Person or
by any other such officer, director
or employee of an Exempt Person;
provided further,
however, that any stockholder
of the Company, together with any Affiliate, Associate or
other person who may be deemed to be a
representative of such stockholder then serving
as a director of the Company, will not
be deemed to be the Beneficial
Owner of, to have Beneficial Ownership
of or to Beneficially Own
any securities of the Company held by any
other Person as a result of any
Person affiliated or otherwise associated
with such stockholder serving as a director
of the Company or taking any action
in connection therewith; or

(iv)       that
are the subject of
a derivative transaction entered into by
such Person or any of
such Person’s Affiliates or Associates, including,
for these purposes, any derivative security acquired
by such Person or any
of such Person’s Affiliates or Associates
that gives such Person or any
of such Person’s Affiliates or Associates
the economic equivalent of ownership of an
amount of securities due to the
fact that the value of the derivative security
is explicitly determined by reference
to the price or value of such securities,
or that provides such Person or any
of such Person’s Affiliates or Associates
an opportunity, directly or
indirectly, to profit or to share in any
profit derived from any change
in the value of such securities, in any
case without regard to whether (A)
the derivative security conveys
any voting rights
in such securities to such Person or any
of such Person’s Affiliates or Associates;
(B) the derivative security is required
to be, or capable of being,
settled through delivery
of such securities; or (C) such
Person or any of
such Person’s Affiliates or Associates may have
entered into other transactions that
hedge the economic effect of
the derivative security. In determining
the number of Common Shares that
are Beneficially Owned by virtue
of the operation of this Section 1(d)(iv),
the subject Person will be deemed to Beneficially Own (without duplication) the notional or other number of Common Shares that,
pursuant to the documentation evidencing the derivative security, may be acquired upon the exercise or settlement of the applicable
derivative security or as the basis upon which the value or settlement amount of such derivative security, or the opportunity
of the holder of such derivative security to profit or share in any profit, is to be calculated, in whole or in part, and in any
case (or if no such number of Common Shares is specified in such documentation or otherwise) as determined by the Board in good
faith to be the number of Common Shares to which the derivative security relates. Notwithstanding anything in this Plan to the
contrary, to the extent not within the foregoing provisions of this Section 1(e), a Person will be deemed to be the Beneficial
Owner of, and will be deemed to Beneficially Own or have Beneficial Ownership of, Stock held by any other Person that such Person
would be deemed to own constructively or indirectly or otherwise would be aggregated with Stock owned by such Person pursuant
to Section 382.

(e)       “Board”
has the meaning set forth in the recitals at the beginning of this Plan.

(f)       “Book
Entry Shares” has the meaning set forth in Section 3(a).

(g)       “Business
Day” means any day other than a Saturday, Sunday
or a day on
which the Federal Reserve Bank of
New York is closed.

(h)       “Close
of Business” on any
given date means 5:00 p.
m., New York City time, on
such date; provided, however,
that if such date is not
a Business Day, it means 5:00 p.m., New York
City time, on the next succeeding
Business Day.

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(i)       “Code”
has the meaning
set forth in the recitals at the
beginning of this Plan.

(j)       “Common
Shares” means, unless otherwise specified, the
shares of common stock, par value
$0.01 per share, of the Company. When
used with reference to any Person other than the
Company, Common Shares means the
capital stock with the greatest voting
power, or the equity securities or other
equity interest having power to control
or direct the management,
of such Person or, if such Person is a Subsidiary of
another Person, of the Person that ultimately
controls such first-mentioned Person.

(k)       “Common
Share Equivalents” has the meaning
set forth in Section 11(a)(iii).

(l)       “Company”
has the meaning
set forth in the preamble hereto, subject
to the terms of Section
13(a).

(m)       “Current
Per Share Market Price” of any
security (a “Security” for purposes of
this definition), for all computations
other than those made pursuant to Section
11(a)(iii), means the average of the daily
closing prices per share of
such Security for the 30 consecutive Trading Days immediately
prior to but not including such date,
and for purposes of computations made pursuant to Section 11(a)(iii), the Current
Per Share Market Price of any Security on any date will
be deemed to be the average of the daily closing prices per share of such Security for the 10 consecutive Trading Days
immediately following but not including such date; provided, however, that in the event that the Current Per
Share Market Price of the Security is determined during any period following the announcement by the issuer of such Security
of (i) a dividend or distribution on such Security payable in shares of such Security or securities convertible into such
shares (other than the Rights); or (ii) any subdivision, combination, consolidation, reverse stock split or reclassification
of such Security, and the ex-dividend date for such dividend or distribution, or the record date for such subdivision,
combination, consolidation, reverse stock split or reclassification, has not occurred prior to the commencement of the
requisite 30 Trading Day or 10 Trading Day period as set forth above, then, and in each such case, the Current Per Share
Market Price will be appropriately adjusted to take into account ex-dividend trading. The closing price for each day will be
the last sale price, regular way, reported at or prior to 4:00 p.m., New York City time, or, if no such sale takes place on
such day, the average of the bid and asked prices, regular way, reported as of 4:00 p.m. New York City time, in either case
as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to
trading on NASDAQ or, if the Security is not listed or admitted to trading on NASDAQ, as reported in the principal
consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on
which the Security is listed or admitted to trading or, if the Security is not listed or admitted to trading on any national
securities exchange, the last quoted price reported at or prior to 4:00 p.m., New York City time, or, if on such date the
Security is not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported as of
4:00 p.m., New York City time, by NASDAQ or such other system then in use, or, if on any such date the Security is not quoted
by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making
a market in the Security selected by the Board. If on any such date no market maker is making a market in the Security, the
fair value of the Security on such date as determined in good faith by the Board will be used, which determination will be
described in a statement filed with the Rights Agent and will be conclusive and binding on the Rights Agent and the holders
of the Rights. If the Current Per Share Market Price of the Preferred Shares cannot be determined in the manner provided
above or if the Preferred Shares are not publicly held or not listed or traded in a manner described above, then the Current
Per Share Market Price of the Preferred Shares will be conclusively deemed to be (x) the Current Per Share Market Price of
the Common Shares as determined pursuant to this Section 1(m) multiplied by (y)
1,000 (as such number may be appropriately
adjusted to reflect any subdivision,
combination, consolidation, reverse stock split or reclassification of Common
Shares occurring after the Rights Dividend
Declaration Date). If the Security (other than
the Preferred Shares) is not publicly held
or not so listed or traded, or if on any such date
the Security is not so quoted and no such
market maker is making a market in the Security, then
the Current Per Share Market Price means the fair value per Security
as determined in good faith by the Board, after consultation with
a nationally recognized investment banking firm,
whose determination will be described
in a statement filed with the Rights Agent and
will be conclusive and binding on
the Rights Agent and the holders of
the Rights.

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(n)       “Current
Exchange Value” means the product of
the Current Per Share Market Price of Common
Shares on the date of the occurrence of
an Exchange Determination (or the next Business
Day, if such date is not a Business
Day) multiplied by the number of Common
Shares for which the Right would
otherwise be exchangeable (without regard to whether
there were sufficient Common Shares available
therefor).

(o)       “Current
Value” has the meaning
set forth in Section 11(a)(iii).

(p)       “Distribution
Date” means the earlier of (i) the Close of Business on
the 10th Business Day (or such later date as
may be determined by action of the Board,
which action must be taken
prior to the Distribution Date that
otherwise would have occurred) after the
Shares Acquisition Date (or, if the 10th Business Day
after the Shares Acquisition Date
occurs before the Record Date, then the Record
Date); or (ii) the Close of Business on
the 10th Business Day (or such later date
as may be determined by the Board)
after the date that a tender or
exchange offer by any Person (other than
an Exempt Person) is first published, sent or
given within the meaning of
Rule 14d-2(a) of the General Rules and Regulations promulgated under the
Exchange Act if, assuming the successful consummation thereof,
such Person would be an Acquiring
Person; provided, however, that
if any tender or exchange offer
referred to in clause (ii) of this Section 1(p) is cancelled, terminated or otherwise
withdrawn prior to the Distribution Date without the purchase or exchange of any Common Shares pursuant thereto, then such
offer will be deemed, for purposes of this paragraph, never to have been made.

(q)       “Equivalent
Shares” means any class or series
of capital stock of
the Company having the same rights,
privileges and preferences as the Preferred
Shares.

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

(s)       “Exchange
Determination” has the meaning set forth in Section
24(a).

(t)       “Exchange
Ratio” has the meaning
set forth in Section 24(a).

(u)       “Exemption
Request” has the meaning
set forth in Section 25(a).

(v)       “Exempt
Person” means (i) the Company or any
Subsidiary of the Company, in each case including
the officers and members of
the board of directors thereof acting
in their fiduciary capacities; or
(ii) any employee benefit
plan of the Company or of any Subsidiary
of the Company, or any entity
or trustee holding (or acting in
a fiduciary capacity in respect of) shares of
capital stock of the Company for
or pursuant to the
terms of any such plan
or for the purpose of
funding other employee benefits for employees
of the Company or any Subsidiary
of the Company.

(w)       “Exercise
Price” is initially $35.00 for each one
one-thousandth of a Preferred Share issuable pursuant
to the exercise of a Right
and is subject to adjustment
from time to time as provided in Section
11 or Section 13.

(x)       “Existing
Holder” means any Person who or that,
together with all Affiliates and Associates
of such Person, is, immediately prior to
the first public announcement
of the adoption of this Plan, the
Beneficial Owner of 4.9% or
more of the Common Shares then
outstanding. Notwithstanding anything
to the contrary in this Plan, any
Existing Holder who, together with all Affiliates
and Associates of such Person, becomes at any time the Beneficial Owner of less than 4.9% of the Common Shares then outstanding
will cease to be an Existing Holder and will be subject to all the provisions of this Plan in the same manner as any Person who
is not and was not an Existing Holder.

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(y)       “Expiration
Date” means the earliest to occur
of (i) the Close of
Business on the Final Expiration
Date; (ii) the Redemption Date; (iii) the
time at which the Board orders the exchange
of the Rights as provided in Section
24; (iv) if Stockholder Approval
is not obtained at the
first annual meeting of
the stockholders of the Company following the
date of this Plan, the Close of
Business on the date of such stockholder
meeting, or the Close
of Business on
first anniversary of the date of this Plan, if Stockholder
Approval has not otherwise been
obtained by that date; (v) the
close of business
on the effective date of the repeal
of Section 382
or any other
change if the Board, in its
sole discretion, determines that this Plan is no
longer necessary or desirable for
the preservation of the Tax Benefits;
(vi) the time at which the Board determines
that the Tax Benefits are fully utilized
or no longer available pursuant
to Section 382 or
that an ownership change pursuant
to Section 382 would
not adversely impact in any material
respect the time period in which the
Company could use the Tax Benefits, or
materially impair the amount of the Tax
Benefits that could be used by
the Company in any particular time period,
for applicable tax purposes; or
(vii) a determination by the Board,
in its sole discretion and prior to the
Distribution Date, that this Plan
and the Rights
are no longer in the
best interests of the Company and its stockholders.

(z)       “Final
Expiration Date” means March 3, 2023.

(aa) “NASDAQ”
means The NASDAQ Stock Market LLC.

(bb) “Original
Rights” has the meaning set forth in Section 1(d)(i).

(cc) “Person”
means any individual, firm, corporation, partnership, limited liability company, joint venture, business trust, trust, association,
syndicate, group (as such term is used in Rule 13d-5 of the General Rules and Regulations promulgated under the Exchange Act, as
in effect on the Rights Dividend Declaration Date), other entity or any group of Persons maVking a “coordinated acquisition”
of Common Shares within the meaning of Treasury Regulations § 1.382-3(a)(1) or who are otherwise treated as an “entity”
within the meaning of Treasury Regulations § 1.382-3(a)(1), and, in each case, will include any successor (by merger or otherwise)
of any such Person, but will not include a Public Group (as defined in Treasury Regulations § 1.382-2T(f) (13)).

(dd) “Plan”
has the meaning set forth in the preamble at the beginning of this Plan.

(ee) “Post-Event
Transferee” has the meaning set forth in Section 7(e).

(ff) “Pre-Event
Transferee” has the meaning set forth in Section 7(e).

(gg) “Preferred
Shares” means shares of Series A Participating Preferred Stock, par value
$0.01 per share, of the Company and, to the extent that there are not a sufficient number of shares of Preferred Shares authorized
to permit the full exercise of the Rights, any other series of preferred stock of the Company designated for such purpose containing
terms substantially similar to the terms of the Preferred Shares.

(hh) “Principal
Party” has the meaning set forth in Section 13(b).

(ii) “Record
Date” has the meaning set forth in the recitals at the beginning of this Plan.

(jj) “Redemption
Date” has the meaning set forth in Section 23(a).

(kk) “Redemption
Price” has the meaning set forth in Section 23(a).

(ll) “Requesting
Person” has the meaning set forth in Section 25(a).

    	7

     

    

(mm) “Right”
has the meaning set forth in the recitals at the beginning of this Plan.

(nn) “Rights
Agent” has the meaning set forth in the preamble hereto.

(oo) “Rights
Certificate” means a certificate substantially in the form attached as Exhibit B.

(pp) “Rights
Dividend Declaration Date” has the meaning set forth in the recitals at the beginning of this Plan.

(qq) “Section
11(a)(ii) Event” means any event described in Section 11(a)(ii).

(rr) “Section
11(a)(ii) Trigger Date” has the meaning set forth in Section 11(a)(iii).

(ss) “Section
13 Event” means any event described in clause (i), (ii) or (iii) of Section 13(a).

(tt) “Section
382” means Section 382 of the Code or any successor or replacement provision and the Treasury Regulations promulgated

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

(vv) “Security”
has the meaning set forth in Section 1(m).

(ww) “Shares
Acquisition Date” means the first date of public announcement (which, for purposes of this definition, includes the filing
or amending of a report pursuant to Section 13(d) of the Exchange Act or pursuant to a comparable successor statute) by the Company
or an Acquiring Person that an Acquiring Person has become such or that discloses information that reveals the existence of an
Acquiring Person.

(xx) “Spread”
means the excess of (i) the Current Value over (ii) the Exercise Price.

(yy) “Stock”
means with respect to any Person, such Person’s (i) common shares; (ii) preferred shares (other than preferred shares described
in Section 1504(a)(4) of the Code); and (iii) any other interest that would be treated as “stock” of such Person pursuant
to Treasury Regulations § 1.382-2T(f) (18).

(zz) “Stockholder
Approval” means the approval of this Plan by the affirmative vote of the majority of shares of Common Stock present in
person or represented by proxy and entitled to vote on the proposal at a meeting of the stockholders of the Company (or any adjournment
or postponement thereof) duly held in accordance with the Company’s Amended and Restated Certificate of Incorporation, as
amended, the Company’s Amended and Restated Bylaws, and applicable law.

(aaa) “Subsequent
Transferee” has the meaning set forth in Section 7(e).

(bbb) “Subsidiary”
of any Person means any firm, corporation, partnership, limited liability company, joint venture, business trust, trust, association,
syndicate or other entity (whether or not incorporated) of which an amount of voting securities sufficient to elect a majority
of the directors or Persons having similar authority, or a majority of the equity or ownership interests, is Beneficially Owned,
directly or indirectly, by such Person, or any firm, corporation, partnership, limited liability company, joint venture, business
trust, trust, association, syndicate or other entity (whether or not incorporated) otherwise controlled by such Person.

    	8

     

    

(ccc) “Substitution
Period” has the meaning set forth in Section 11(a)(iii).

(ddd) “Summary
of Rights” means a summary of this Plan substantially in the form attached as Exhibit C.

(eee) “Tax Benefits”
means net operating losses, capital loss carryovers, general business credit carryovers, alternative minimum tax credit carryovers,
foreign tax credit carryovers or any loss or deduction attributable to a “net unrealized built-in loss” within the
meaning of Section 382, in each case of the Company or any of its Subsidiaries, and any other tax attribute the benefit of which
is subject to possible limitation pursuant to Section 382.

(fff) “Trading
Day” means a day on which the principal national securities exchange on which a referenced security is listed or admitted
to trading is open for the transaction of business or, if a referenced security is not listed or admitted to trading on any national
securities exchange, a Business Day.

(ggg) “Treasury
Regulations” means the final, temporary and proposed income tax regulations promulgated by the United States Department
of the Treasury pursuant to the Code, as amended or superseded from time to time.

(hhh) “Triggering
Event” means any Section 11(a)(ii) Event or Section 13 Event.

(iii) “Trust”
has the meaning set forth in Section 24(b)(ii).

(jjj) “Trust
Agreement” has the meaning set forth in Section 24(b)(ii).

(kkk) “Waiver
Request” has the meaning set forth in Section 25(b).

Section 2. Appointment
of Rights Agent. The Company hereby appoints the Rights Agent to act as rights agent for the Company and the holders of the
Rights (who, in accordance with Section 3, will prior to the Distribution Date also be the holders of the Common Shares) in accordance
with the express terms and conditions hereof, and the Rights Agent hereby accepts such appointment. Upon 10 days’ prior written
notice to the Rights Agent, the Company may from time to time appoint such co-rights agents as it may deem necessary or desirable.
If the Company appoints one or more co-rights agents, then the respective duties of the Rights Agent and such co-rights agents
will be as the Company determines, and the Company will promptly notify each rights agent of its respective duties. The Rights
Agent will have no duty to supervise and will in no event be liable for the acts or omissions of, any co-rights agent.

 

    	9

     

    

Section 3. Issuance of Rights Certificates.

(a)       Rights
Evidenced by Certificates
for Common Shares and
Book Entry Shares.
Until the Distribution Date, (i)
the Rights (unless earlier expired,
redeemed or terminated) will be
evidenced (subject to the provisions of Section
3(b) and Section 3(c)) by the certificates
for Common Shares registered in the names
of the holders thereof or, in the
case of uncertificated Common Shares
registered in book entry form (“Book Entry
Shares”), by notation in book
entry accounts reflecting the ownership
of such Common Shares (which certificates
and Book Entry Shares, as applicable,
will also be deemed to be Rights
Certificates) and not by
separate Rights Certificates; and (ii)
the Rights (and the
right to receive Rights Certificates)
will be transferable only in connection
with the transfer of the underlying Common
Shares (including a transfer to the Company).
As soon as practicable
after the Distribution Date, the
Company will prepare and execute, the
Rights Agent will countersign, by manual
or facsimile signature, and the
Company will send or cause to be sent
(and the Rights Agent will, if so requested
and provided with all
necessary information and documents, at the
Company’s expense send)
(by mailing, in accordance with Section
27 or by such reasonable means as
may be selected by the Company) to each
record holder of Common
Shares as of the Close of
Business on the Distribution
Date (other than any
Acquiring Person or any of
its Affiliates or Associates), at the
address of such holder shown on
the transfer books of the Company or the
transfer agent for the Common
Shares, one or more Rights
Certificates evidencing one Right for
each Common Share so held, subject
to adjustment as provided herein.
Receipt of a Rights Certificate by
any Person will not preclude
a later determination that all
or part of the Rights
represented thereby are null and
void pursuant to Section
7(e). To the extent that a Section 11(a)(ii)
Event has also occurred, the Company may
implement such procedures as it deems appropriate
in its sole discretion to minimize the
possibility that Rights are received by
any Person whose Rights are null
and void pursuant
to Section 7(e). In the
event that an adjustment in the number of
Rights per Common Share has
been made pursuant to Section 11,
then at the time of
distribution of the Rights Certificates, the
Company will make the necessary and appropriate
rounding adjustments (in accordance
with Section 14(a)) so that Rights
Certificates representing only whole numbers
of Rights are distributed
and cash is paid in lieu of
any fractional Rights (in accordance
with Section 14(a)). As of and after the Distribution Date, the Rights will be evidenced solely by the Rights Certificates and
may be transferred by the transfer of the Rights Certificates as permitted hereby, separately and apart from any transfer of Common
Shares, and the holders of such Rights Certificates as shown on the transfer books of the Company or the transfer agent for the
Rights (which may be the Rights Agent) will be the record holders thereof. The Company will promptly notify the Rights Agent in
writing upon the occurrence of the Distribution Date. Until such notice is provided to the Rights Agent, it may presume conclusively
for all purposes that the Distribution Date has not occurred.

(b)       Summary
of Rights; Outstanding
Common Shares. The Company
will make available, or cause to be made
available, promptly after the
Record Date, a copy of the Summary of Rights
to any holder of
Rights who may so request from time to time prior
to the Expiration Date. With respect
to certificates for Common Shares and Book
Entry Shares, as applicable, outstanding as of
the Record Date or issued subsequent to
the Record Date, until the
earlier of the Distribution Date
or the Expiration Date, the
Rights will be evidenced by such
certificates or Book Entry Shares, and
the registered holders of
the Common Shares will also be the
registered holders of the associated
Rights. Until the earlier of
the Distribution Date or the Expiration
Date, the surrender for transfer of any
Common Shares in respect of which Rights
have been issued (with or
without a copy of the Summary of Rights)
will also constitute the transfer of the
Rights associated with such Common
Shares. Notwithstanding anything to
the contrary in this Plan, upon
the effectiveness of a redemption
pursuant to Section 23 or an exchange
pursuant to Section 24,
the Company will not thereafter issue any
additional Rights and, for the
avoidance of doubt, no Rights
will be attached to or
will be issued with any Common Shares
(including any Common Shares issued pursuant
to an exchange) at any time thereafter.

    	10

     

    

(c)       Legend.
Rights will be issued in respect
of all Common Shares that
are issued (whether as an original issuance or
from the Company’s treasury)
after the Record Date but prior
to the earlier of the Distribution
Date or the Expiration Date. Certificates
representing such Common Shares will also be deemed
to be certificates for Rights, and
will bear substantially the following
legend if such certificates are issued after the
Record Date but prior to the
earlier of the Distribution Date
or the Expiration Date:

THIS
CERTIFICATE ALSO EVIDENCES AND ENTITLES THE HOLDER
HEREOF TO CERTAIN RIGHTS AS SET FORTH IN
A TAX BENEFIT PRESERVATION PLAN, DATED AS OF
MARCH 3, 2020, BETWEEN AVIAT
NETWORKS, INC. (THE “COMPANY”) AND
COMPUTERSHARE INC., AS RIGHTS AGENT
(OR ANY SUCCESSOR RIGHTS AGENT THEREUNDER),
AS THE SAME MAY BE AMENDED OR SUPPLEMENTED
FROM TIME TO TIME (THE “PLAN”), THE TERMS OF
WHICH ARE HEREBY INCORPORATED HEREIN BY REFERENCE AND A COPY OF
WHICH IS ON FILE AT THE PRINCIPAL EXECUTIVE
OFFICES OF THE COMPANY. UNDER CERTAIN
CIRCUMSTANCES, AS SET FORTH IN THE PLAN,
SUCH RIGHTS (AS DEFINED IN THE
PLAN) MAY BE REDEEMED, MAY BECOME EXERCISABLE FOR
SECURITIES OR ASSETS OF THE COMPANY
OR SECURITIES OF ANOTHER ENTITY, MAY
BE EXCHANGED FOR SHARES OF COMMON STOCK
OR OTHER SECURITIES OR ASSETS OF
THE COMPANY, MAY EXPIRE OR MAY BE EVIDENCED BY SEPARATE CERTIFICATES AND
MAY NO LONGER BE EVIDENCED BY THIS CERTIFICATE.
THE COMPANY WILL MAIL TO THE HOLDER OF THIS
CERTIFICATE A COPY OF THE PLAN AS IN
EFFECT ON THE DATE OF MAILING WITHOUT
CHARGE AFTER RECEIPT OF A WRITTEN REQUEST THEREFOR. UNDER
CERTAIN CIRCUMSTANCES AS SET FORTH IN THE PLAN, RIGHTS THAT ARE
BENEFICIALLY OWNED BY, TRANSFERRED TO OR HAVE BEEN
OWNED BY AN ACQUIRING PERSON (AS
DEFINED IN THE PLAN) OR ANY OF ITS AFFILIATES (AS
DEFINED IN THE PLAN) OR ASSOCIATES (AS DEFINED IN THE PLAN) WILL BE NULL AND
VOID AND WILL NO LONGER BE TRANSFERABLE.

With respect to any
Book Entry Shares, a legend in substantially
similar form will be included in a notice
to the record holder of
such shares in accordance with applicable
law. With respect to such certificates for Common Shares or Book
Entry Shares, as applicable, containing
the foregoing legend,
until the earlier of
the Distribution Date or the Expiration
Date, (i) the Rights associated
with the Common Shares represented by such
certificates or Book Entry Shares will be
evidenced solely by such certificates
or Book Entry Shares; (ii) the
registered holders of the Common Shares
will also be the registered holders of
the associated Rights; and
(iii) the surrender for transfer of any
such certificates or Book Entry Shares (with
or without a copy of the Summary of
Rights) will also constitute the transfer of
the Rights associated with the
Common Shares represented thereby. Notwithstanding this
Section 3(c), the omission of
the legend required hereby, the inclusion
of a legend that makes reference to a rights
agreement or tax benefit preservation plan
other than this Plan or the failure to provide
notice thereof will not affect the
enforceability of any
part of this Plan or the rights
of any holder
of Rights.

(d)       Acquisitions
of Rights by the Company. In the event
that the Company purchases or acquires any
Common Shares after the Record Date but
prior to the earlier of
the Distribution Date or the Expiration
Date, any Rights associated
with such Common Shares will be deemed cancelled
and retired so that the Company will not
be entitled to exercise any Rights
associated with the Common
Shares that are no longer
outstanding.

 

    	11

     

    

Section 4. Form of Rights Certificates.

(a)       Rights
Certificates. The Rights
Certificates (and the form of election
to purchase and form of assignment,
including the certifications
therein, to be printed on
the reverse thereof) will be substantially in the
form of Exhibit B, and may have
such marks of identification or designation and
such legends, summaries or endorsements
printed thereon as the Company may deem
appropriate (but which do not affect
the rights, duties, responsibilities
or liabilities of the Rights Agent)
and are not inconsistent with the
provisions of this Plan, or as may be
required to comply with any applicable
law or with any
rule or regulation made pursuant
thereto, with any applicable rule
or regulation of
any applicable stock
exchange or trading system or
the Financial Industry Regulatory Authority,
or to conform to customary usage. Subject to the provisions of Section 11 and Section 22, the Rights Certificates, whenever distributed,
will be dated as of the Record Date (or in the case of Rights issued with respect to Common Shares issued by the Company after
the Record Date, as of the date of issuance of such Common Shares) and on their face will entitle the holders thereof to purchase
such number of one one-thousandths of a Preferred Share as will be set forth therein at the Exercise Price, but the number and
type of securities purchasable upon the exercise of each Right and the Exercise Price will be subject to adjustment as provided
herein.

(b)       Certain
Legends. Any Rights Certificate issued pursuant
to Section 3(a), Section 11(g) or
Section 22 that represents Rights
that are Beneficially Owned by
an Acquiring Person, an Affiliate or Associate of
an Acquiring Person, a Post-Event Transferee, a Pre-Event Transferee, a Subsequent Transferee
or any nominee
of any of the foregoing,
and any Rights Certificate issued pursuant
to Section 6 or Section
11 upon transfer, exchange,
replacement or adjustment of
any other Rights
Certificate referred to in this sentence,
will contain (to the extent that the Rights
Agent has notice thereof
and to the extent feasible) substantially
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 PLAN). ACCORDINGLY,
THIS RIGHTS CERTIFICATE AND THE RIGHTS
(AS SUCH TERMS ARE DEFINED IN THE PLAN)
REPRESENTED HEREBY MAY BECOME NULL AND
VOID IN THE CIRCUMSTANCES SPECIFIED IN
SECTION 7(e) OF THE PLAN.

(c)       Uncertificated
Rights. Notwithstanding anything to the
contrary in this Plan, the Company and
the Rights Agent may amend this
Plan to provide for uncertificated Rights
in addition to or in place
of Rights evidenced
by Rights Certificates.

 

Section 5. Countersignature and Registration.

(a)       Countersignature.
The Rights Certificates will be executed on behalf
of the Company by its Chairman of the
Board, Chief Executive Officer, President,
Chief Financial Officer, Secretary, Assistant
Secretary or any Senior Vice President,
which execution will be attested
to by the Secretary or an Assistant
Secretary of the Company, in each case either
manually or by facsimile signature,
and will have affixed thereto the Company’s
seal (if any) or a facsimile thereof. The Rights
Certificates will be countersigned, either manually
or by facsimile signature, by
an authorized signatory of the Rights
Agent, but it will not
be necessary for the same signatory
to countersign all of the Rights
Certificates. No Rights Certificate
will be valid for any purpose unless countersigned
by the Rights Agent.
If any director or
officer of the Company who has signed or
attested to any of
the Rights Certificates ceases to be such
director or 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 or attested
to such Rights Certificates on behalf of the Company
had not ceased to be
a director or officer of
the Company. Any Rights Certificate may be
signed or attested
to on behalf of the Company by any person
who, as of the actual date
of the execution of such Rights Certificate, is a proper
director or officer of the Company
to sign such Rights Certificate, although
at the date of the execution of this Plan any
such person was not such a director or
officer.

    	12

     

    

(b)       Transfer
Books. Following the
Distribution Date, the Rights
Agent will keep or cause to be
kept, at its office designated for
such purposes, books for registration and
transfer of the Rights Certificates issued
hereunder. Such books will 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, the certificate
number of each of the Rights
Certificates and the date of each of
the Rights Certificates. The Rights Agent
will not register, or permit to be
registered, any transfer or exchange of
any Rights Certificates (or the
underlying Rights) that have become null
and void pursuant
to Section 7(e), have been
redeemed pursuant to Section 23
or have been exchanged pursuant
to Section 24.

 

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

(a)       Transfer,
Split Up, Combination and
Exchange of Rights Certificates.
Subject to the provisions of Section
4(b), Section 7(e), Section 14
and Section 24, at any
time after the Close of
Business on the Distribution
Date, and at or prior
to the Close of
Business on the Expiration
Date, any Rights Certificate (other
than any Rights
Certificate representing Rights that have
become null and
void pursuant to Section
7(e), that have been redeemed pursuant
to Section 23 or that have been
exchanged pursuant to Section
24) may be transferred, split
up, combined or exchanged for another
Rights Certificate entitling the
registered holder to purchase a like number of
one one-thousandths of a Preferred Share
(or, following a Triggering Event, other
securities, cash or other assets, as the
case may be) as the Rights
Certificate surrendered then entitled such holder
(or former holder in the case of
a transfer) to purchase. Any registered holder desiring to transfer, split
up, combine or exchange any
Rights Certificate will make such request in writing delivered
to the Rights Agent,
and will surrender the Rights Certificate,
together with any required form of
assignment duly executed
and properly completed, to be
transferred, split up, combined
or exchanged at the office of the
Rights Agent designated for such purpose
accompanied by a signature guarantee from an eligible guarantor institution participating in a signature guarantee program approved
by the Securities Transfer Association. The Rights Certificates are transferable
only on the books
and records of the Rights
Agent. Notwithstanding anything in
this Plan to the contrary, neither
the Rights Agent nor the
Company will be obligated to take any
action whatsoever with respect to
the transfer of any
such surrendered Rights Certificate until
the registered holder has
properly completed and duly executed
the certificate contained in the
form of assignment on
the reverse side of such Rights
Certificate and has provided such
additional evidence of the identity of the Beneficial
Owner (or former Beneficial Owner) or Affiliates
or Associates thereof, in each case as the Company
or the Rights Agent reasonably requests.
Thereupon, subject to Section 4(b), Section
7(e), Section 14 and
Section 24, the Rights
Agent will countersign (by manual or
facsimile signature) and deliver to the
Person entitled thereto a Rights Certificate
as so requested. The Company or the Rights
Agent may require payment from the holder
of a Rights Certificate of
a sum sufficient to cover any tax or
governmental charge that may be
imposed in connection with any
transfer, split up, combination
or exchange of any Rights Certificate.
If and to the
extent that the Company does require payment of
any such tax or
charge, the Company will provide the Rights
Agent prompt written notice thereof and
the Rights Agent will not deliver any Right Certificate unless and until the Rights Agent is satisfied that all such payments have
been made, and the Rights Agent will forward any such sum collected by it to the Company or to such Person as the Company specifies
by written notice. The Rights Agent will not have any duty or obligation to take any action pursuant to any Section of this Plan
related to the issuance or delivery of Rights Certificates unless and until it is satisfied that all such taxes or charges have
been paid.

    	13

     

    

(b)       Mutilated,
Destroyed, Lost or Stolen Rights Certificates.
Subject to the provisions of Section 7(e),
Section 11(a)(ii) and Section 24,
at any time after the Distribution
Date and prior to the Expiration
Date, upon receipt by the Company and
the Rights Agent of
evidence reasonably satisfactory to them
of the loss, theft, destruction or mutilation
of a Rights Certificate and such additional
evidence of the identity of the Beneficial
Owner (or former Beneficial Owner) or
Affiliates or Associates thereof as the
Company or the Rights Agent may request, and,
in case of loss, theft or destruction,
of indemnity or security reasonably satisfactory
to them, and reimbursement to the Company
and the Rights
Agent of all reasonable expenses incidental
thereto, and upon surrender to the
Rights Agent and cancellation
of the Rights Certificate if mutilated,
the Company will make and deliver a
new Rights Certificate of
like tenor to the Rights Agent for
countersignature and delivery to the registered
holder in lieu of
the Rights Certificate so lost, stolen,
destroyed or mutilated. Every new
Rights Certificate issued pursuant to
this Section 6(b) in lieu
of any lost, stolen,
destroyed or mutilated
Rights Certificate will evidence an
original additional contractual
obligation of the Company, whether
or not the
lost, stolen, destroyed
or mutilated Rights
Certificate will be at any time enforceable
by anyone, and,
subject to Section 7(e) will be
entitled to all the benefits
of this Plan equally and
proportionately with any and all other
Rights duly issued hereunder.

 

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

(a)       Exercise
of Rights.
Subject to Section 7(e), Section 23(b) and
Section 24(a), the registered holder of
any Rights Certificate may exercise
the Rights evidenced
thereby (except as otherwise provided herein)
in whole or in part on
any Business Day at or after the
Distribution Date and prior to the
Close of Business
on the Expiration Date by
surrender of the Rights Certificate,
with the form of election to purchase and
certificate on the reverse side thereof
properly completed and duly executed,
to the Rights Agent at the
office of the Rights Agent designated
for such purpose, together with payment
of the Exercise Price for each one
one-thousandth of a Preferred Share (or, following
a Triggering Event, other securities, cash or
other assets, as the case may be) as
to which the Rights are exercised.

(b)       Exercise
Price. The Exercise Price is payable
in accordance with Section 7(c).

    	14

     

    

(c)       Payment.
Except as otherwise provided in this
Plan, upon receipt of a Rights
Certificate representing exercisable Rights, with the
form of election to purchase and certification
properly completed and duly executed,
accompanied by payment
of the aggregate Exercise Price for
the total number of one one-thousandths
of a Preferred Share (or, following a Triggering Event,
other securities, cash or other assets, as the
case may be) to be purchased and
an amount equal to any applicable
transfer tax or governmental
charge required to be paid by the holder
of such Rights Certificate
in accordance with Section 9(e), the Rights Agent will, subject to Section 7(f) and Section 20(j), thereupon promptly (i) (A) requisition
from any transfer agent of the Preferred Shares (or make available, if the Rights Agent is the transfer agent for the Preferred
Shares) a certificate for the total number of one one-thousandths of a Preferred Share (or, following a Triggering Event, other
securities, cash or other assets, as the case may be) to be purchased (or, in the case of uncertificated shares or other securities,
requisition from the transfer agent a notice setting forth such number of shares or other securities to be purchased for which
registration will be made on the transfer books of the Company), and the Company hereby irrevocably authorizes its transfer agent
to comply with all such requests; or (B) if the Company has elected to deposit the total number of one one-thousandths of a Preferred
Share (or, following a Triggering Event, other securities, cash or other assets, as the case may be) issuable upon exercise of
the Rights hereunder with a depositary agent, requisition from such depositary agent depositary receipts representing interests
in such number of one one-thousandths of a Preferred Share (or, following a Triggering Event, other securities, cash or other assets,
as the case may be) as are to be purchased (in which case certificates for the Preferred Shares (or, following a Triggering Event,
other securities, cash or other assets, as the case may be) represented by such receipts will be deposited by the transfer agent
with such depositary agent) and the Company hereby irrevocably directs such depositary agent to comply with such request; (ii)
when necessary to comply with the terms of this Plan, requisition from the Company the amount of cash, if any, to be paid in lieu
of the issuance of fractional shares in accordance with Section 14; (iii) after receipt of such certificates, notices, or depositary
receipts, cause the same to be delivered to or upon the order of the registered holder of such Rights Certificate, registered in
such name or names as may be designated by such holder; and (iv) when necessary to comply with the terms of this Plan, after receipt
thereof, deliver such cash to or upon the order of the registered holder of such Rights Certificate. The payment of the Exercise
Price (as such amount may be reduced (including to zero) pursuant to Section 11(a)(iii)), and an amount equal to any applicable
transfer tax or governmental charge required to be paid by the holder of such Rights Certificate in accordance with Section 9(e),
may be made by certified bank check, money order, cashier’s check or bank draft payable to the order of the Company. In the
event that the Company is obligated to issue securities of the Company other than Preferred Shares, pay cash or distribute other
property pursuant to Section 11(a), then the Company will make all arrangements necessary so that such other securities, cash or
other property are available for distribution by the Rights Agent, if and when necessary to comply with the terms of this Plan.
Notwithstanding anything to the contrary in this Plan, the Company reserves the right to require that prior to the occurrence of
a Triggering Event, upon any exercise of Rights, a number of Rights be exercised so that only whole Preferred Shares would be issued.

(d)       Partial
Exercise. If the registered holder
of any Rights
Certificate exercises less than all the
Rights evidenced thereby,
then a new Rights
Certificate evidencing Rights equivalent
to the Rights remaining unexercised
will be issued by the Rights
Agent and delivered to or upon
the order of the registered holder
of such Rights Certificate, registered in
such name as may be designated by such holder,
subject to the provisions of Section
14.

    	15

     

    

(e)       Prohibited
Issuances. Notwithstanding anything
to the contrary in this Plan, from
and after the first occurrence of
a Triggering Event, any Rights
that are or were acquired
or Beneficially Owned by
(i) an Acquiring Person or an Affiliate or
Associate of an Acquiring Person, (ii) a transferee of
an Acquiring Person (or an Affiliate or Associate of
an Acquiring Person) who becomes a transferee after the
Acquiring Person becomes such (a “Post-Event
Transferee”), (iii) a transferee of an Acquiring Person (or an Affiliate
or Associate of an Acquiring Person) 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 (or an Affiliate or
Associate of the Acquiring Person) to holders
of equity interests in such Acquiring Person (or an Affiliate or
Associate of such Acquiring Person) or
to any Person with whom the Acquiring
Person (or an Affiliate or Associate of the Acquiring
Person) has any continuing agreement, arrangement
or understanding whether or
not in writing regarding the transferred
Rights or (B) a transfer that
the Board has determined is part of a
plan, arrangement or understanding that has
as a primary purpose or effect the
avoidance of this Section 7(e) (a “Pre-Event
Transferee”), (iv) any subsequent transferee
receiving transferred Rights from a Post-Event
Transferee or a Pre-Event Transferee, either
directly or through one
or more intermediate transferees (a
 “Subsequent Transferee”), or (v) any
nominee of any of
the foregoing will, in each case, become
null and void
without any further action,
and no holder
(whether or not such holder
is an Acquiring Person or an Affiliate or
Associate of an Acquiring Person) of such
Rights will have any
rights whatsoever (including the right to
exercise) with respect to such Rights or any
Rights Certificates that formerly
evidenced such Rights, whether
pursuant to any provision of this Plan
or otherwise. From and after the
first occurrence of a Triggering Event,
no Rights Certificate will be issued
pursuant to this Plan (including
to an Acquiring Person, an Affiliate or Associate of
an Acquiring Person, a Post-Event Transferee, a Pre-Event Transferee, a Subsequent
Transferee or any nominee
of any of the foregoing)
that represents one or
more Rights that are or
have become null and
void pursuant to this
Section 7(e) or with respect to any
Common Shares otherwise deemed to be Beneficially
Owned by any of
the foregoing, and any Rights Certificate
delivered to the Rights
Agent that represents Rights that
are or have become null
and void pursuant
to this Section 7(e) will be
cancelled. The Company will use all reasonable
efforts to ensure that the provisions of this Section
7(e) and Section 4(b) are complied with,
but neither the Company nor
the Rights Agent will have
any liability to any
holder of Rights
Certificates or to any other
Person as a result of the Company’s
failure to make any determinations with respect to an Acquiring Person, an Affiliate
or Associate of an Acquiring Person, a
Post-Event Transferee, a Pre-Event Transferee, a Subsequent Transferee or
any nominee of any
of the foregoing. The Company
will provide the Rights Agent with
written notice of the identity of any such
Acquiring Person, Affiliate or Associate of an
Acquiring Person, Post-Event Transferee, Pre-Event Transferee, Subsequent Transferee
or any nominee
of any of the foregoing,
and the Rights Agent may rely on
such notice in carrying out its
duties pursuant to this
Plan and will be deemed not
to have any knowledge
of the identity of any such Person unless
and until it has received such notice.

(f)       Information
Concerning Ownership.
Notwithstanding anything to the contrary
in this Plan or any
Rights Certificate, neither the Rights
Agent nor the Company is obligated
to undertake any action
with respect to a registered holder of Rights
upon the occurrence of any
purported exercise or transfer of Rights
as set forth in this Section 7 unless
such registered holder, in addition to
having complied with the
requirements of Section 7(a), has
(i) properly completed and duly executed
the certificate contained in the
form of election to purchase or form of
assignment, as applicable, set forth on the reverse
side of the Rights Certificate surrendered for such exercise or assignment; and (ii) provided such additional evidence (including
the identity of the Beneficial Owner (or former Beneficial Owner) thereof and of the Rights evidenced thereby, and the Affiliates
or Associates of such Beneficial Owner or former Beneficial Owner) as the Company or the Rights Agent may reasonably request. If
such registered holder does not comply with the foregoing requirements, then the Company will be entitled to conclusively deem
such Rights to be Beneficially Owned by an Acquiring Person (or an Affiliate or Associate of an Acquiring Person, a Post-Event
Transferee, a Pre-Event Transferee, a Subsequent Transferee or any nominee of any of the foregoing, as applicable) and, accordingly,
such Rights will be null and void and not exercisable or transferable.

 

    	16

     

    

Section 8. Cancellation
and Destruction of Rights Certificates. All Rights Certificates surrendered for the purpose of exercise, transfer, split up,
combination, redemption or exchange will, 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, will be cancelled by it, and no Rights Certificates
will be issued in lieu thereof except as expressly permitted by any of the provisions of this Plan. The Company will deliver to
the Rights Agent for cancellation and retirement, and the Rights Agent will so cancel and retire, any Rights Certificate purchased
or acquired by the Company otherwise than upon the exercise thereof. Subject to applicable law, the Rights Agent will maintain
electronic or physical records of all Rights Certificates that have been cancelled or destroyed by the Rights Agent. At the Company’s
expense, the Rights Agent must maintain such electronic or physical records for the time period required by applicable law. The
Rights Agent must deliver all cancelled Rights Certificates to the Company or, at the written request of the Company, must destroy,
or cause to be destroyed, such cancelled Rights Certificates, and in such case must deliver a certificate evidencing the destruction
thereof to the Company (or, at the Company’s option, appropriate copies of the electronic or physical records relating to
Rights Certificates so cancelled or destroyed by the Rights Agent).

 

Section 9. Reservation and Availability of Preferred
Shares.

(a)       Reservation.
The Company covenants and agrees that
it will use all reasonable efforts to cause to be
reserved and kept available out
of its authorized and unissued Preferred
Shares not reserved for another purpose
(and, following the occurrence of
a Triggering Event, out of
its authorized and unissued Common Shares or other
securities, or out of
its authorized and issued shares held in
treasury), the number of Preferred Shares (and, following
the occurrence of a Triggering Event,
Common Shares or other securities) that
will be sufficient to permit the exercise
in full of all outstanding
Rights.

(b)       Listing.
So long as the Preferred Shares (and, following
the occurrence of a Triggering Event,
Common Shares or other securities) issuable
and deliverable upon the exercise
of the Rights may be
listed on any
national securities exchange, the Company
must use all reasonable efforts to cause, from and
after such time as the Rights become
exercisable (but only to the extent that
it is reasonably likely that the Rights
will be exercised), all shares reserved
for such issuance to be listed
on such exchange upon
official notice of issuance upon
such exercise.

(c)       Registration.
The Company must use all reasonable efforts
to (i) file, as soon as practicable following the
earliest date after the first occurrence
of a Section 11(a)(ii) Event
in which the consideration to be
delivered by the Company upon
exercise of the Rights is described
in Section 11(a) (ii) or
Section 11(a)(iii), or as soon
as is required by law following the
Distribution Date, as the case may
be, a registration statement pursuant to
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 Expiration
Date. The Company may temporarily suspend
(with prompt written notice of any suspension
provided to the Rights
Agent), from time to time for a period not
to exceed 120 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 or in order to prepare
and file any supplement or
amendment to such registration statement that
the Board determines to be necessary pursuant
to applicable law. Upon any such
suspension, the Company will issue a public announcement
stating, and promptly notify the Rights
Agent in writing, that the exercisability
of the Rights has
been temporarily suspended, as well as issue a public
announcement, and promptly notify the
Rights Agent in writing, at such time as the
suspension is no longer
in effect. In addition, if the
Company determines that a registration statement is required following
the Distribution Date, then
the Company may temporarily suspend the
exercisability of the Rights
until such time as such registration statement has been declared effective.
The Company will also take such action
as may be appropriate under, or
to ensure compliance with, the securities
or “blue sky” laws of
the various states in connection with
the exercisability of
the Rights, as well as any other applicable
law, rule or regulation. Notwithstanding
anything to the contrary in this
Plan, the Rights will not
be exercisable in any jurisdiction unless
the requisite qualification
in such jurisdiction has been obtained
(and the exercise thereof is permitted
pursuant to applicable law), or
an exemption therefrom is available, and
until a registration statement in respect thereof
has been declared and remains effective.

    	17

     

    

(d)       Valid
Issuance. 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 or
other securities of the Company) delivered
upon exercise of Rights
will, at the time of delivery
of the certificates for such securities (or registration on
the transfer books of the Company or the
transfer agent for such securities) (subject to payment
of the Exercise Price, if any), be duly
and validly authorized
and issued and fully paid and
nonassessable.

(e)       Transfer
Taxes and Governmental Charges.
The Company further covenants and
agrees that it will pay when due
and payable any
and all transfer taxes and governmental charges that
may be payable in respect of the original
issuance or delivery of
Rights Certificates (or any Preferred
Share, Common Share or other security of
the Company, as the case may be)
upon the exercise or
exchange of Rights. Notwithstanding the
foregoing, the Company is not
required to (i) pay any transfer tax or
governmental charge that may be
payable in respect of any transfer
or delivery of
Rights Certificates (or certificates or
depositary receipts for Preferred Shares, Common
Shares or other securities of the Company,
as the case may be) in a name other
than, or the issuance or delivery of certificates
or depositary receipts for Preferred Shares, Common Shares or other securities of the Company, 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 exchange; or (ii) issue
or deliver any certificates or depositary receipts for Preferred Shares, Common Shares or other securities of the Company, as the
case may be, upon the exercise or exchange of any Rights until any such transfer tax or charge has been paid (any such transfer
tax or charge being payable by the registered holder of such Rights Certificate at the time of surrender or exchange) or it has
been established to the Company’s and the Rights Agent’s satisfaction that no such tax or charge is due. The foregoing
also applies to any transfer taxes and governmental charges that may be payable in respect of any uncertificated Rights Certificates,
shares or other securities.

Section 10. Record
Date for Securities Issued. Each Person in whose name any certificate for a number of one one-thousandths of a Preferred Share
(or any other security of the Company, including Common Shares) is issued (or registration on the transfer books of the Company
or the applicable transfer agent is effected) upon the exercise or exchange of Rights will for all purposes be deemed to have become
the holder of record of such fractional Preferred Share (or other security of the Company) represented thereby on, and such certificate
will be dated (or registration on the transfer books of the Company or the applicable transfer agent effected), the date on which
the Rights Certificate evidencing such Rights was duly surrendered and payment of the applicable Exercise Price, if any, together
with any applicable transfer tax or governmental charge required to be paid by the holder of such Rights Certificate in accordance
with Section 9(e), was made; provided, however, that if the date of such surrender and payment is a date upon which
the transfer books of the Company (or the applicable transfer agent) are closed, then such Person will be deemed to have become
the record holder of such fractional Preferred Shares (or other securities of the Company) on, and such certificate will be dated
(or registration on the transfer books of the Company or the applicable transfer agent effected), the next succeeding Business
Day on which the transfer books of the Company (or the applicable transfer agent) are open. Prior to the exercise of the Rights
evidenced thereby, the holder of a Rights Certificate is not entitled to any rights of a holder of Preferred Shares (or any other
security of the Company) for which the Rights are exercisable, including the right to vote, to receive dividends or other distributions,
or to exercise any preemptive rights, and is not entitled to receive any notice of any proceedings of the Company, except as provided
herein.

 

    	18

     

    

Section 11. Adjustment
of Exercise Price, Number and Kind of Shares or Number of Rights. The Exercise Price, the number and kind of shares or other
property 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)       Certain
Events.

(i)       Certain
Adjustments to Preferred Shares.
Notwithstanding anything to the contrary
in this Plan, in the event that the Company
at any time after the Rights
Dividend Declaration Date (A) declares
a dividend on the Preferred Shares payable
in Preferred Shares, (B) subdivides or splits
the outstanding Preferred Shares, (C) combines
or consolidates the outstanding Preferred Shares (by reverse stock split or otherwise)
into a smaller number of Preferred Shares or (D) issues any shares of its capital stock in a reclassification of the Preferred
Shares (including any such reclassification in connection with a share exchange, consolidation or merger in which the Company
is the continuing or surviving corporation), then, in each such event, except as otherwise provided in this Section 11(a)(i) and
Section 7(e), (1) the Exercise Price in effect at the time of the record date for such dividend or of the effective date of such
subdivision, split, combination, consolidation or reclassification, and the number and kind of Preferred Shares or capital stock
of the Company, as the case may be, issuable on such date, will be proportionately adjusted so that the holder of any Right exercised
after such time will be entitled to receive, upon payment of the Exercise Price then in effect, the aggregate number and kind
of Preferred Shares or securities of the Company, as the case may be, that, if such Right had been exercised immediately prior
to such date (and at a time when the Preferred Shares transfer books of the Company were open), such holder would have owned upon
such exercise and been entitled to receive by virtue of such dividend, subdivision, split, combination, consolidation or reclassification;
provided, however, that in no event will 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 the exercise of one Right. If an event occurs
that would require an adjustment pursuant to both this Section 11(a)(i) and Section 11(a)(ii), then the adjustment provided for
in this Section 11(a)(i) will be in addition to, and will be made prior to, any adjustment required pursuant to Section 11(a)(ii).

(ii)       Exercise
of Rights Following Certain Events.
Subject to Section 23
and Section 24, in the
event that any Person, at any time
after the Rights Dividend
Declaration Date, becomes an Acquiring Person, unless
the event causing such Person to
become an Acquiring Person is a transaction set
forth in Section 13(a) then promptly
following the occurrence of such
event each holder of
a Right, except as provided
below and in Section 7(e), will thereafter
have the right to receive for each Right,
upon exercise thereof in accordance
with the terms of this Plan and
payment of the Exercise Price in effect immediately
prior to the occurrence of such
event, in lieu of
a number of one one-thousandths
of a Preferred Share, such number of Common
Shares as equals the quotient obtained
by dividing (A) the
product obtained by multiplying (1) the Exercise Price in effect immediately
prior to the first occurrence of such
event by (2) the number of one
one-thousandths of a Preferred Share for which a Right
was exercisable (or would have been
exercisable if the Distribution Date
had occurred) immediately prior to the
first occurrence of such event by (B) 50%
of the Current Per Share Market Price for Common
Shares on the date of such first occurrence of
such event (such number of shares,
the “Adjustment Shares”); provided,
however, that the Exercise
Price and the number of Common
Shares so receivable upon the
exercise of a Right will be
subject to further adjustment as appropriate
in accordance with Section 11(e). In
the event that a Section 11(a)(ii)
Event has occurred and the
Rights are outstanding, then,
subject to Section 28,
the Company may not take
any action that would
eliminate or diminish the
benefits intended to be
afforded by the Rights. The Company will
promptly notify the Rights
Agent in writing when this

Section 11(a)(ii) applies.

    	19

     

    

(iii)       Insufficient
Common Shares. In
the event that the number of Common Shares
that are authorized by
the Company’s Amended and Restated
Certificate of Incorporation, as amended,
but not outstanding or reserved for issuance
for purposes other than upon
exercise of the Rights are not sufficient to permit
the exercise in full of the Rights in accordance with Section 11(a)(ii), or if any necessary regulatory or stockholder approval
for such issuance has not been obtained by the Company, then, in the event that the Rights become exercisable, the Company will
(A) determine the value of the Adjustment Shares issuable upon the exercise of a Right (the “Current Value”)
and (B) with respect to each Right (subject to Section 7(e)), make adequate provision to substitute for the Adjustment Shares issuable
pursuant thereto, upon the exercise of a Right and the payment of the applicable Exercise Price, (1) cash, (2) a reduction in the
Exercise Price, (3) Preferred Shares, (4) other equity securities of the Company (including shares or units of shares of any series
of preferred stock that, by virtue of having dividend, voting and liquidation rights substantially comparable to those of the Common
Shares, the Board has deemed in good faith to have substantially the same value or economic rights as the Common Shares (such shares
or units of shares of preferred stock, “Common Share Equivalents”)), (5) debt securities of the Company, (6)
other assets or (7) any combination of the foregoing, in each case having an aggregate value equal to the Current Value (less the
amount of any reduction in the Exercise Price), where such aggregate value has been determined by the Board based upon the advice
of a nationally recognized investment banking firm selected by the Board, which determination will be described in a written statement
filed with the Rights Agent and will be binding on the Rights Agent and the holders of the Rights; provided, however,
that if the Company has not made adequate provision to deliver value pursuant to clause (B) above within 30 days following the
later of (x) the first occurrence of a Section 11(a)(ii) Event and (y) the date on which the Company’s right of redemption
pursuant to Section 23(a) expires (the later of (x) or (y), the “Section 11(a)(ii) Trigger Date”), then the
Company will be obligated to deliver, upon the surrender for exercise of a Right and without requiring payment of the Exercise
Price, Common Shares (to the extent available and except to the extent that the Company has not obtained any necessary stockholder
or regulatory approval for such issuance) and such number or fractions of Preferred Shares and then, if necessary, cash, which
shares or cash have an aggregate value equal to the Spread. If the Board determines in good faith that it is likely that sufficient
additional Common Shares could be authorized for issuance upon exercise in full of the Rights or that any necessary stockholder
or regulatory approval for such issuance could be obtained, the 30 day period set forth above may be extended and re-extended to
the extent necessary (with prompt written notice of any such extension provided to the Rights Agent) from time to time, but not
more than 120 days after the Section 11(a)(ii) Trigger Date, so that the Company may seek stockholder approval for the authorization
of such additional Common Shares or take such action necessary to obtain such regulatory approval (such period, as it may be extended,
the “Substitution Period”). To the extent that the Company determines that some action need be taken pursuant
to the first or second sentences of this Section 11(a)(iii), the Company (a) will provide, subject to Section 7(e), that such action
applies uniformly to all outstanding Rights and (b) may suspend the exercisability of the Rights until the expiration of the Substitution
Period in order to seek such stockholder approval, to take any action necessary to obtain such regulatory approval or to decide
the appropriate form of distribution to be made pursuant to such first sentence and to determine the value thereof. In the event
of any such suspension, the Company will issue a public announcement (and promptly provide written notice to the Rights Agent)
stating that the exercisability of the Rights has been temporarily suspended, as well as issue a public announcement (and promptly
provide written notice to the Rights Agent) at such time as the suspension is no longer in effect. For purposes of this Section
11(a)(iii), the value of the Common Shares will be the Current Per Share Market Price of the Common Shares on the Section 11(a)(ii)
Trigger Date and any Common Share Equivalent will be deemed to have the same value as the value of the Common Shares on such date.
The Board may, but will not be required to, establish procedures to allocate the right to receive Common Shares upon the exercise
of the Rights among holders of Rights pursuant to this Section 11(a)(iii).

    	20

     

    

(iv)       Dilutive
Rights Offering.
If the Company, at any
time after the Rights Dividend
Declaration Date, fixes a record date for the
issuance of rights, options
or warrants to all holders of
Preferred Shares entitling such holders
(for a period expiring within 45 days after
such record date) to subscribe for or purchase
Preferred Shares or Equivalent Shares, or securities
convertible into Preferred Shares or Equivalent
Shares, at a price per share (or having a
conversion or exercise price per
share, if a security that is convertible
into or exercisable for Preferred Shares or Equivalent Shares) less than
the Current Per Share Market Price of the Preferred Shares on
such record date, then, in each such
case, the Exercise Price to be in effect
after such record date will be determined
by multiplying the Exercise Price in effect immediately
prior to such record date by a fraction, the
numerator of which will be
the number of Preferred Shares and Equivalent
Shares (if any) outstanding on such record date,
plus the number of Preferred Shares or
Equivalent Shares, as the case may be, that
the aggregate offering price of the total
number of Preferred Shares or Equivalent Shares, as the
case may be, to be offered or
issued (or the aggregate initial
conversion price of the convertible securities
to be offered or issued)
would purchase at such Current Per Share Market Price, and the
denominator of which will be the number of Preferred Shares and
Equivalent Shares (if any) outstanding on
such record date, plus the
number of additional Preferred Shares or
Equivalent Shares, as the case may be, 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 will 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
the exercise of one
Right. If such subscription price
may be paid in a consideration part or
all of which is in a form other
than cash, then the value of such consideration
will be as determined in good faith by
the Board, whose determination will
be described in a written statement filed with the
Rights Agent and will be
binding on the Rights
Agent and the holders
of the Rights. Preferred Shares and Equivalent
Shares owned by or held for the account of the
Company will not be deemed outstanding
for the purpose of
any such computation. Such adjustment
will be made successively whenever such
a record date is fixed, and in the
event that such rights, options or warrants
are not so issued, then
the Exercise Price will be adjusted
to be the Exercise Price that would
then be in effect if such record date had
not been fixed.

(b)       Distributions.
If the Company, at any
time after the Rights Dividend
Declaration Date, fixes a record date for the
making of a distribution
to all holders of Preferred Shares (including
any such distribution made in connection
with a share exchange, consolidation or merger in which the
Company is the continuing or
surviving corporation) of cash (other
than a periodic cash dividend
out of the earnings or
retained earnings of the Company),
assets (other than a dividend
payable in Preferred Shares, but including
any dividend payable
in stock other than Preferred Shares),
evidences of indebtedness, subscription
rights, options or warrants (excluding
those referred to in Section 11(a)(iv)), then,
in each such case, the Exercise Price to be
in effect after such record date will be determined by multiplying the Exercise Price in effect
immediately prior to such record date by a fraction, the numerator of which will be the Current Per Share Market Price of a Preferred
Share on such record date, less the fair market value per Preferred Share (as determined in good faith by the Board, whose determination
will be described in a statement filed with the Rights Agent and will be conclusive and binding on the Rights Agent and the holders
of the Rights) of the portion of the cash, assets or evidences of indebtedness to be so distributed or of such subscription rights,
options or warrants applicable to one Preferred Share, and the denominator of which will be such Current Per Share Market Price
of a Preferred Share on such record date; provided, however, that in no event will 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 the
exercise of one Right. Such adjustment will be made successively whenever such a record date is fixed, and in the event that such
distribution is not so made, then the Exercise Price will be adjusted to be the Exercise Price that would have been in effect if
such record date had not been fixed.

    	21

     

    

(c)       Insignificant
Changes. Notwithstanding anything to
the contrary in this Plan, no
adjustment in the Exercise Price
is required unless such adjustment would require
an increase or decrease of at least 1%
of the Exercise Price; provided, however,
that any adjustments that
by reason of this Section 11(c) are
not required to be made will be
carried forward and taken into account in
any subsequent adjustment.
All calculations pursuant to this
Section 11 must be
made to the nearest cent or
to the nearest ten-millionth of
a Preferred Share or ten-thousandth of any
other share or security,
as the case

may be. Notwithstanding the first sentence
of this Section 11(c), any adjustment required by this Section 11 must be made no later than the earlier of (i) three years from
the date of the transaction that requires such adjustment or (ii) the Expiration Date.

(d)       Shares Other Than
Preferred Shares. If
as a result of an adjustment made pursuant
to Section 11(a) or Section
13(a), the holder of any Right thereafter
exercised will become entitled to
receive any shares of capital
stock other than Preferred Shares, then thereafter the
number of such other shares so receivable upon
exercise of any Right and, if
required, the Exercise Price thereof, will be subject
to adjustment from time to time in a manner
and on terms as nearly equivalent
as practicable to the provisions with
respect to the Preferred Shares contained in Section
11(a), Section 11(a)(iv), Section
11(b), Section 11(c), Section 11(f), Section 11(g), Section 11(h), Section 11(i), Section 11(j) and Section 11(k), and the
provisions of Section 7, Section 9, Section 10 and Section 13 with respect to the Preferred Shares will apply on like terms
to any such other shares.

(e)       Rights
Issued Subsequent to Adjustment.
All Rights originally issued by
the Company subsequent to any adjustment made to the
Exercise Price hereunder will evidence the
right to purchase, at the adjusted
Exercise Price, the number of one one-thousandths
of a Preferred Share (and other shares of
other capital stock or other securities,
assets or cash of the Company, if any)
purchasable from time to time hereunder upon
exercise of the Rights, all subject to further
adjustment as provided herein.

(f)       Effect
of Adjustments on
Existing Rights. Unless the
Company has exercised its election
as provided in Section 11(g), upon
each adjustment of the Exercise Price as
a result of the calculations made in Section
11(a)(iv) and Section 11(b), each Right outstanding
immediately prior to the making
of such adjustment will thereafter evidence
the right to purchase, at the adjusted
Exercise Price, that number of Preferred Shares (calculated
to the nearest ten- millionth of
a Preferred Share) obtained by (i) multiplying
(A) the number of one
one-thousandths of a Preferred Share covered by
a Right immediately prior to this
adjustment by (B) the
Exercise Price in effect immediately prior to such adjustment
of the Exercise Price; and (ii) dividing
the product so obtained by the Exercise
Price in effect immediately after such adjustment
of the Exercise Price.

    	22

     

    

(g)       Adjustment
in Number of Rights.
The Company may elect on or after the
date of any adjustment of the Exercise
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
will 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
will become that number of Rights
(calculated to the nearest ten-thousandth)
obtained by dividing the Exercise
Price in effect immediately prior to adjustment
of the Exercise Price by the Exercise Price
in effect immediately after adjustment of
the Exercise Price. The Company will make a public
announcement (and promptly provide
written notice to the Rights
Agent) 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 Exercise
Price is adjusted or any
day thereafter, but, if any Rights
Certificates have been issued, will be
at least 10 days later than
the date of the public announcement.
If any Rights
Certificates have been issued, upon
each adjustment of the number of
Rights pursuant to this
Section 11(g), the Company will, as promptly
as practicable, distribute or cause to be
distributed to holders of
record of Rights Certificates on
such record date Rights Certificates evidencing,
subject to Section 14,
the additional Rights to which such holders
will be entitled as a result of such
adjustment, or, at the option
of the Company, will distribute or
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 will
be entitled after such adjustment. Rights
Certificates to be so distributed
will be issued, executed
and delivered by the Company, and
countersigned and delivered by the Rights
Agent, in the manner
provided for herein (and may bear, at the option
of the Company, the adjusted Exercise
Price), and will be registered in the
names of the holders of
record of Rights Certificates on
the record date specified in the public
announcement.

(h)       Rights
Certificates Unchanged.
Irrespective of any adjustment or
change in the Exercise 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 Exercise Price per one
one-thousandth of a Preferred Share and
the number of one one-thousandths
of a Preferred Share that were expressed in the
initial Rights Certificates issued hereunder.

(i)       Par
Value Limitations.
Before taking any action
that would cause an adjustment reducing the
Exercise Price below the par or
stated value, if any, of the number of
one one-thousandths of a Preferred Share
issuable upon exercise of
the Rights, the Company will take any
corporate action that may, in the opinion
of its counsel,
be necessary in order that the Company may duly
and validly issue as fully paid
and nonassessable shares such number of
one one- thousandths
of a Preferred Share at such adjusted Exercise
Price.

(j)       Deferred
Issuance. In any case in which this
Section 11 requires that
an adjustment in the Exercise Price be
made effective as of a record date for
a specified event, the Company may elect to defer (with prompt written notice
to the Rights Agent)
until the occurrence of
such event the issuance to the
holder of any
Right exercised after such record date of the number
of one one-thousandths of a Preferred
Share and other capital
stock or securities, assets or cash
of the Company, if any, issuable
upon such exercise over and
above the number of one
one-thousandths of a Preferred Share and
other capital stock or
securities, assets or cash of the Company,
if any, issuable upon
such exercise on the basis of
the Exercise Price in effect prior to such adjustment;
provided, however, that
the Company must deliver to such holder
a due bill or other appropriate
instrument evidencing such holder’s right
to receive such additional shares (fractional or
otherwise) or securities upon the
occurrence of the event requiring such adjustment.

    	23

     

    

(k)       Reduction
in Exercise Price. Notwithstanding anything
to the contrary in this Section
11, the Company is entitled
to make such reductions in the Exercise
Price, in addition to those adjustments
expressly required by this Section 11,
as and to the extent that it,
in its sole discretion, determines to be
advisable in order that any (i) consolidation
or subdivision of the Preferred Shares or Common
Shares, (ii) issuance wholly for cash of
any Preferred Shares or Common
Shares at less than the applicable Current Per Share Market Price, (iii) issuance
wholly for cash of Preferred Shares or
Common Shares or securities that
by their terms are convertible into or exchangeable for Preferred Shares or
Common Shares, (iv) stock dividend
or (v) issuance of
rights, options or warrants referred
to in this Section 11
hereafter made by the Company to holders
of Preferred Shares or Common
Shares is not taxable to such stockholders.

(l)       No
Diminishment of Benefit of
Rights. The Company
covenants and agrees that, after
the Distribution Date, it will not,
except as permitted by Section
23, Section 24
or Section 28, take
(or permit to be taken) any action
if at the time that 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.

(m)       Certain
Adjustments to Common Shares.
Notwithstanding anything to the contrary
in this Plan, in the event that the Company,
at any time after the Rights
Dividend Declaration Date and prior to
the Distribution Date, (i) declares or
pays a dividend on the Common
Shares payable in Common Shares,
(ii) subdivides or splits the
outstanding Common Shares (other than
by the payment of dividends
payable in Common Shares), (iii)
combines or consolidates the outstanding Common
Shares (by reverse stock split or otherwise)
into a lesser number of Common
Shares or (iv) issues any shares
of its capital stock in a reclassification
of the Common Shares (including
any such reclassification in connection
with a share exchange, consolidation or merger in which the
Company is the continuing or
surviving corporation), then, in
each such event, except as otherwise provided
in this Section 11
or Section 7(e): (A) each Common Share
(or shares of capital stock issued in such
reclassification of the Common Shares) outstanding immediately following such time will have associated with it the number of
Rights as were associated with one Common Share immediately prior to the occurrence of such event; (B) the Exercise Price in effect
at the time of the record date for such dividend or of the effective date of such subdivision, split, combination, consolidation
or reclassification will be adjusted so that the Exercise Price thereafter equals the result obtained by multiplying the Exercise
Price in effect immediately prior to such time by a fraction, the numerator of which will be the total number of Common Shares
outstanding immediately prior to such event and the denominator of which will be the total number of Common Shares outstanding
immediately after such event; provided, however, that in no event will 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 the exercise of
such Right; and (C) the number of one one-thousandths of a Preferred Share (or shares of such other capital stock) issuable upon
the exercise of each Right outstanding after such event equals the number of one one- thousandths of a Preferred Share (or shares
of such other capital stock) as were issuable with respect to one Right immediately prior to such event. Each Common Share that
becomes outstanding after an adjustment has been made pursuant to this Section 11(m) will have issued with it that number of Rights,
exercisable at the Exercise Price and for the number of one one-thousandths of a Preferred Share (or shares of such other capital
stock), as one Common Share has associated with it immediately following the adjustment made pursuant to this Section 11(m). If
an event occurs that would require an adjustment pursuant to both this Section 11(m) and Section 11(a)(ii), then the adjustment
provided for in this Section 11(m) will be in addition to, and will be made prior to, any adjustment required pursuant to Section
11(a)(ii). The adjustments provided for in this Section 11(m) will be made successively whenever such a dividend is declared or
paid or such a subdivision, split, combination, consolidation or reclassification is effected.

    	24

     

    

(n)       Adjustment
of Rights Associated with
Certain Distributions. Other than
in connection with a transaction contemplated
by Section 11(m), in the event that the
Company, at any time after the Rights
Dividend Declaration Date and prior to
the Distribution Date, issues or
distributes any securities or assets
in respect of Common Shares (other
than (A) a distribution
or dividend of its
capital stock and (B) pursuant to any non-extraordinary
periodic cash dividend), then the Company will make such adjustments,
if any, in the Exercise Price or
the number of Rights or securities
or other property purchasable upon
exercise of Rights as the
Board, in its sole discretion, may deem
to be appropriate under
the circumstances in order to adequately
protect the interests of
the holders of the Rights
generally, and the Company and
the Rights Agent will amend this
Plan as reasonably necessary to provide
for such adjustments.

 

Section 12. Certificate
of Adjusted Exercise Price or Number of Shares. Whenever an adjustment is made, or any event affecting the Rights or their
exercisability (including an event that causes the Rights to become null and void) occurs as provided in Section 11 or Section
13, the Company must promptly (a) prepare a certificate setting forth such adjustment or describing such event and providing a
reasonably detailed statement of the facts, computations and methodology accounting for such adjustment or event; (b) provide the
Rights Agent and each transfer agent for the Common Shares or Preferred Shares a copy of such certificate; and (c) if a Distribution
Date has occurred, mail a brief summary of such adjustment or event to each holder of a Rights Certificate in accordance with Section
26. Notwithstanding the foregoing, the failure of the Company to make or provide such certification or notice will not affect the
validity of such adjustment or the force or effect of the requirement for such adjustment. The Rights Agent will (i) be fully protected
in relying on any such certificate and on any adjustment or statement contained therein; (ii) have no duty or liability with respect
thereto; and (iii) not be deemed to have knowledge of any such adjustment or event unless and until it has received such certificate.

 

    	25

     

    

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

(a)       Certain
Transactions. In the event that, following
a Shares Acquisition Date, directly or
indirectly, (i) the Company consolidates with, or
merges with and into, any
other Person (other than
a wholly owned Subsidiary of the Company
in a transaction that complies
with Section 11(l)) and the
Company is not the continuing
or surviving entity
of such consolidation or merger; (ii) any
Person (other than a wholly
owned Subsidiary of the Company in a transaction
that complies with Section
11(l)) consolidates with, or merges
with and into, the
Company, and the Company is the
continuing or surviving
entity of such consolidation or
merger and, in connection with such consolidation
or merger, all or part of
the Common Shares are changed into or exchanged
for stock or other securities of
any other Person or
the Company, or cash or any other
property; or (iii) the
Company sells, exchanges, mortgages
or otherwise transfers (or one or
more of its Subsidiaries sells, exchanges,
mortgages or otherwise transfers), in one
transaction or a series of
related transactions, assets, cash flow or earning
power aggregating to 50% or
more of the assets, cash flow or earning
power of the Company and its Subsidiaries
(taken as a whole) to any other
Person or Persons (other than
the Company or one or more of
its wholly owned Subsidiaries in one
or more transactions, each of
which individually (and together) complies
with Section 11(l)), then, concurrent
with and in each such case, proper provision must
be made so that (A)
each holder of a Right
(except as provided in Section 7(e))
thereafter has the right
to receive, upon the exercise thereof
at a price per Right equal
to the Exercise Price multiplied by the number
of one one-thousandths of a Preferred
Share for which a Right was exercisable immediately
prior to the occurrence of such
Section 13 Event
in accordance with the terms of
this Plan, and in lieu of
Preferred Shares, such number of duly and
validly authorized and issued and
fully paid and nonassessable and
freely tradable Common Shares of the Principal
Party, free of any liens, encumbrances,
rights of first refusal or
other adverse claims, as will be equal to the
result obtained by (1) multiplying the then
current Exercise Price by the number of one
one-thousandths of a Preferred Share for which a Right
is exercisable immediately prior to the
first occurrence of a Section 13
Event (or, if a Section 11(a)(ii)
Event has occurred prior to the
first occurrence of a Section 13
Event, multiplying the number of such one one-thousandths
of a Preferred Share for which a Right was exercisable immediately
prior to the first occurrence of
a Section 11(a)(ii) Event by
the Exercise Price in effect immediately prior to such first occurrence of
a Section 11(a)(ii) Event); and (2) dividing
that product (which, following the
first occurrence of a Section 13
Event, will be referred to as the
 “Exercise Price” for each Right and
for all purposes of this Plan) by
50% of the Current Per Share Market
Price of the Common Shares of
such Principal Party on the date of consummation
of such Section 13
Event; provided, however, that
the price per Right so payable
and the number of Common
Shares of such Principal Party so receivable
upon exercise of a Right
will be subject to further adjustment as appropriate
in accordance with Section 11(d) to reflect any events covered thereby occurring in respect of the Common Shares of such Principal
Party after the occurrence of such Section 13 Event; (B) such Principal Party will thereafter be liable for, and must assume, by
virtue of such Section 13 Event, all the obligations and duties of the Company pursuant to this Plan; (C) the term “Company”
will thereafter be deemed to refer to such Principal Party, it being specifically intended that the provisions of Section 11 will
apply only to such Principal Party following the first occurrence of a Section 13 Event; (D) such Principal Party must take such
steps (including the reservation of a sufficient number of its Common Shares) in connection with the consummation of any such transaction
as may be necessary to ensure that the provisions hereof will thereafter be applicable, as nearly as reasonably may be, in relation
to its Common Shares thereafter deliverable upon the exercise of the Rights; (E) the provisions of Section 11(a)(ii) will be of
no effect following the first occurrence of any Section 13 Event; and (F) upon the subsequent occurrence of any consolidation,
merger, sale, exchange, mortgage, transfer or other extraordinary transaction in respect of such Principal Party, each holder of
a Right will thereupon be entitled to receive, upon exercise of a Right and payment of the Exercise Price as provided in this Section
13(a), such cash, shares, rights, warrants and other property that such holder would have been entitled to receive had such holder,
at the time of such transaction, owned the Common Shares of the Principal Party receivable upon the exercise of a Right pursuant
to this Section 13(a), and such Principal Party must take such steps (including reservation of a sufficient number of shares of
its capital stock) as may be necessary to permit the subsequent exercise of the Rights in accordance with the terms hereof for
such cash, shares, rights, warrants and other property. For purposes hereof, the “earning power” of the Company and
its Subsidiaries will be determined in good faith by the Board on the basis of the operating income of each business operated by
the Company and its Subsidiaries during the three fiscal years preceding the date of such determination (or, in the case of any
business not operated by the Company or any of its Subsidiaries during the three fiscal years preceding such date, during the period
that such business was operated by the Company or any of its Subsidiaries).

    	26

     

    

(b)       Principal Party.
For purposes of this Plan, the
term “Principal Party” means (i) in the case of any
transaction described in clause (i) or
(ii) of Section 13(a) (A) the Person that
is the issuer of the securities into
which the Common Shares are converted
in the consolidation or merger, or, if there is more than one such
issuer, the issuer whose Common Shares have
the greatest aggregate market value
of shares outstanding; or (B)
if no securities are so issued, (1)
the Person that is the other party to the consolidation or merger, if such Person survives the consolidation or merger, or,
if there is more than one such Person, the Person whose Common Shares have the greatest aggregate market value of shares
outstanding; (2) if the Person that is the other party to the merger does not survive such consolidation or merger, the
Person that does survive such consolidation or merger (including the Company if it survives); or (3) the Person resulting
from the consolidation or merger; and (ii) in the case of any transaction described in clause (iii) of Section 13(a), the
Person that is the party receiving the greatest portion of the assets, cash flow or earning power transferred pursuant to
such transaction or transactions, or, if more than one Person that is a party to such transaction or transactions receives
the same portion of the assets or earning power so transferred and each such portion would, were it not for the other equal
portions, constitute the greatest portion of the assets or earning power so transferred, or if the Person receiving the
greatest portion of the assets or earning power cannot be determined, whichever of such Persons is the issuer of Common
Shares having the greatest aggregate market value of shares outstanding; provided, however, that in the case of
each of clause (i) and (ii) of this Section 13(b), if the Common Shares of such Person are not at such time, or have not been
continuously over the preceding 12-month period, registered pursuant to Section 12 of the Exchange Act, then if such Person
is (x) a direct or indirect Subsidiary of another Person whose Common Shares are and have been so registered, the term
 “Principal Party” will refer to such other Person, a direct or indirect Subsidiary of more than one Person
whose Common Shares are and have been so
registered, the term “Principal Party” will refer to whichever of
such Persons is the issuer of Common Shares having the
greatest aggregate market value of
shares outstanding, or (z) if such
Person is owned, directly or indirectly,
by a joint venture formed by
two or more Persons that are not owned,
directly or indirectly, by the same Person, the
rules set forth in clauses (x) and (y) above
will apply to each of the owners having
an interest in the venture as if the Person
owned by the joint venture was
a Subsidiary of both or all of such joint ventures, and the Principal
Party in each such case must bear the obligations set
forth in this Section 13 in the same
ratio as its interest in such Person bears to the
total of such interests.

(c)       Certain Arrangements.
The Company will not consummate or permit
to occur any Section 13 Event
unless (A) the Principal Party has a
sufficient number of authorized, unissued
and unreserved Common Shares to permit the
exercise in full of the Rights in accordance
with this Section 13 and (B) prior thereto the
Company and the Principal
Party have executed and delivered to the Rights Agent
a supplemental agreement confirming that (1) the requirements of
this Section 13 will be promptly
performed in accordance with their terms,
(2) the Principal Party will, upon consummation of such Section
13 Event, assume this Plan in accordance with Section 13(a) and Section 13(b), (3) such Section 13 Event will not result in a
default by the Principal Party pursuant to this Plan (as it has been assumed by the Principal Party) and (4) the Principal
Party, as soon as practicable after the date of such Section 13 Event and at its own expense, will:

(i)       prepare
and file a registration statement pursuant to
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 (x) become
effective as soon as practicable after such
filing and (y) remain effective (with a prospectus
at all times meeting the
requirements of the Securities Act) until
the Expiration Date, and
similarly comply with applicable state
securities laws;

(ii)       use
its best efforts to list (or continue the
listing of) the Rights and
the securities purchasable upon
exercise of the Rights on
a national securities exchange or
to meet the eligibility requirements for quotation
on a national securities exchange
and to list (and continue the
listing of) the Rights and
the securities purchasable upon
exercise of the Rights on
a national securities exchange;

    	27

     

    

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

(iv)       take
all other action as may be
necessary to allow the Principal Party to issue the
securities purchasable upon exercise
of the Rights.

(d)       Prohibited
Transactions.

(i)       Notwithstanding
anything to the contrary in this
Plan, if the Principal Party has a
provision in any of
its authorized securities or in
its organizational documents that would
have the effect of (i) causing
the Principal Party to issue (other than
to holders of Rights
pursuant to Section 13), in connection
with, or as a consequence of, the
consummation of a Section
13 Event, Common Shares or
common stock equivalents of the Principal
Party at less than the then Current Per Share Market Price thereof
or securities exercisable for, or convertible
into, Common Shares or
common stock equivalents of the Principal
Party at less than such Current Per Share Market Price; or
(ii) providing for any special payment,
tax, charge or similar provision
in connection with the issuance
of the Common Shares of
the Principal Party pursuant to the provisions
of this Section 13, then
the Company hereby agrees with each holder of
Rights that it will not
consummate any such Section 13
Event unless prior thereto the Company
and such Principal Party have executed
and delivered to the Rights
Agent a supplemental agreement providing
that such provision has been cancelled,
waived, amended or rescinded,
or that such authorized securities
will be redeemed, so that such provision
will have no effect in connection
with, or as a consequence of, the
consummation of such Section
13 Event.

(ii)       Notwithstanding anything to the contrary
in this Plan, the Company hereby
agrees with each holder of Rights that it
will not consummate or permit
to occur any Section 13 Event
if (A) at the time or immediately
after such Section 13 Event
there are any rights, warrants, instruments or
securities outstanding, or any agreements or
arrangements, that, as a result of
the consummation of such Section 13
Event, would eliminate or diminish
in any material respect the benefits intended to be
afforded by the Rights; (B) all rights of
first refusal or preemptive rights in
respect of the issuance of Common Shares or
common stock equivalents of the
Principal Party upon exercise of
outstanding Rights have not been
irrevocably waived or rendered inapplicable; (C) prior to, simultaneously with
or immediately after such Section 13
Event, the stockholders of the Person who constitutes, or would constitute,
the Principal Party have received a distribution of Rights previously owned
by such Person or any of its Affiliates
or Associates; or (D) the form
or nature of organization of the
Principal Party would preclude or
limit the exercisability of the
Rights.

(e)       Continued
Applicability. The provisions
of this Section 13 will similarly
apply to successive mergers, consolidations, sales,
exchanges, mortgages, transfers or other extraordinary
transactions. In the
event that a Section 13 Event
occurs at any time after the occurrence
of a Section 11(a)(ii) Event,
then the Rights that have not
previously been exercised will thereafter become
exercisable in the manner described in Section
13(a) (without taking into account any prior adjustment
required by Section 11(a)(ii)).

 

    	28

     

    

Section 14. Fractional Rights and Fractional
Shares.

(a)       Cash
in Lieu of Fractional Rights.
The Company will not be
required to issue fractions of Rights (except
prior to the Distribution
Date as provided in Section 11(m)) or
to distribute Rights Certificates that evidence fractional Rights. In lieu of such fractional Rights,
the Company will pay to the registered holders of the Rights Certificates with regard to which such fractional Rights would otherwise
be issuable an amount in cash equal to the same fraction of the Current Per Share Market Price of a whole Right, calculated as
of the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable.

(b)       Cash
in Lieu of Fractional Preferred Shares.
The Company will not be
required to issue fractions of Preferred Shares (other
than fractions that are integral
multiples of one one-thousandth
of a Preferred Share) upon exercise or exchange
of the Rights or to distribute
certificates that evidence fractional Preferred Shares (other
than fractions that 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 the Company; provided, however,
that such agreement must provide that the
holders of such depositary
receipts have all of
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 that such
Rights are exercised or exchanged as provided
herein an amount in cash equal to
the same fraction of the current market
value of one one-thousandth
of a Preferred Share. For purposes of this
Section 14(b), the current market value
of one one-thousandth of a Preferred
Share will be one one-thousandth
of the Current Per Share Market Price of a Preferred Share, calculated
as of the Trading Day immediately prior
to the date of such exercise or exchange.

(c)       Cash
in Lieu of Fractional Common Shares.
The Company is not required to issue
fractions of Common Shares or
to distribute certificates that evidence
fractional Common Shares upon the
exercise or exchange of Rights. In lieu
of such fractional Common Shares,
the Company may pay to the
registered holders of Rights
Certificates at the time such Rights are
exercised or exchanged as provided herein
an amount in cash equal to the
same fraction of the current market value of a
Common Share. For purposes of
this Section 14(c), the current market
value of a Common Share will be
the Current Per Share Market Price of a Common
Share, calculated as of the Trading Day
immediately prior to the date of such exercise
or exchange.

(d)       Waiver
of Fractional Rights.
Except as permitted by this Section
14, the holder
of a Right, by
the acceptance of such Right,
expressly waives such holder’s right to receive any
fractional Rights or any
fractional shares of any security upon
the exercise or exchange of a Right.

(e)       Procedure
for Payment. Whenever a
payment for fractional Rights, Preferred
Shares or Common Shares is to be
made by the Rights Agent pursuant
to this Plan, the Company will (i) promptly
prepare and deliver to the
Rights Agent a certificate setting forth
in reasonable detail the facts related to
such payment and the prices or
formulas utilized in calculating such
payments; and (ii) provide sufficient monies
to the Rights Agent to make such
payments. The Rights Agent will be
fully protected in relying upon
such certificate and will have no duty
with respect thereto or the contents therein,
and will not be deemed to have
knowledge of any payment for fractional Rights,
Preferred Shares or Common Shares
pursuant to this Plan unless
and until the Rights
Agent has received such certificate and sufficient
monies.

    	29

     

    

Section 15. Rights
of Action. All rights of action in respect of this Plan, except those rights of action given to the Rights Agent pursuant to
this Plan, are vested in the respective registered holders of the Rights Certificates (and, prior to the Distribution Date, the
registered holders of Common Shares). Any registered holder of any Rights Certificate (or, prior to the Distribution Date, any
registered holder of Common Shares), without the consent of the Rights Agent or of the holder of any other Rights Certificate (or,
prior to the Distribution Date, any other holder of Common Shares), may, on such holder’s own behalf and for such holder’s
own benefit and the benefit of other holders of Rights, enforce, and may institute and maintain any suit, action or proceeding
against the Company to enforce, this Plan or otherwise act in respect of such holder’s right to exercise such holder’s
Rights evidenced by such Rights Certificate in the manner provided in such Rights Certificate and in this Plan. 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 Plan and will be entitled to specific performance of the obligations
of the Company, and injunctive relief against actual or threatened breaches or violations of this Plan by the Company, in each
case without having to post a bond.

 

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

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

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

(c)       subject
to Section 6(a) and Section 7(f),
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 certificate for Common
Shares or Book Entry Shares, as applicable)
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 certificate
for Common Shares or Book
Entry Shares, as applicable, made by anyone
other than the Company or the Rights Agent)
for all purposes whatsoever, and neither
the Company nor the Rights
Agent (subject to Section 7(e)) will be
affected by any notice
to the contrary;

(d)       notwithstanding
anything to the contrary in this
Plan, neither the Company nor the
Rights Agent will have any
liability to any holder
of a Right (or a beneficial
interest in a Right) or other Person as
a result of the inability of the Company or the Rights
Agent to perform any of their
respective obligations pursuant to this Plan by reason of any preliminary or permanent injunction or other order, judgment, decree
or ruling (whether interlocutory or final) issued by a court of competent jurisdiction or by a governmental, regulatory, self-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, that the Company
will use all reasonable efforts to have any such injunction, order, judgment, decree or ruling lifted or otherwise overturned as
promptly as practicable;

(e)       Rights
that are Beneficially Owned by
certain Persons will, under the circumstances
set forth in Section 7(e), become null
and void; and

(f)       this
Plan may be supplemented or
amended from time to time in accordance with
Section 28.

    	30

     

    

Section 17. Holder of
Rights Certificate Not Deemed to be a Stockholder. No holder, as such, of any Rights Certificate will be entitled to vote or
receive dividends or be deemed for any purpose to be the holder of the number of one one-thousandths of a Preferred Share or any
other securities of the Company that may at any time be issuable on the exercise or exchange of the Rights represented thereby,
nor will 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 specifically provided in Section 26), or to receive dividends or
subscription rights, or otherwise, until the Rights evidenced by such Rights Certificate have been exercised or exchanged in accordance
with the provisions hereof.

 

Section 18. Concerning the Rights Agent.

(a)       Compensation;
Reimbursement; Indemnification.
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
by the Rights Agent,
the reasonable and documented
out-of-pocket expenses and counsel fees
and other disbursements
incurred by the Rights Agent in connection
with the preparation, negotiation,
delivery, execution, amendment
and administration of this Plan and
the exercise and performance of
its duties hereunder,
including any taxes or
governmental charges imposed on
it as a result of any action
taken by it pursuant
to this Plan (other than
taxes and governmental charges on the fees
payable to it). The Company also agrees
to indemnify the Rights
Agent for, and to hold it harmless against,
any loss, liability, damage, judgment,
fine, penalty, claim, demand, settlement,
cost or expense (including the reasonable and documented
expenses and fees of its
outside counsel)
incurred without gross negligence, bad
faith or willful misconduct on
the part of the Rights Agent (which
gross negligence, bad faith or
willful misconduct must be determined
by a final, non-appealable judgment of a
court of competent jurisdiction)
for any action taken, suffered or
omitted to be taken
by the Rights Agent in connection
with the execution, acceptance, administration,
exercise and performance of its
duties pursuant to this
Plan, including the costs
and expenses of defending against any claim
of liability. Notwithstanding anything
contained in this Plan to the
contrary, the Right Agent’s aggregate
liability during any term of
this Plan with respect to, arising from, or
arising in connection with this Plan, or from all services provided or omitted to be provided under this Plan, whether in contract,
tort or otherwise, is limited to, and shall not exceed, the amounts paid by the Company to the Rights Agent as fees and charges,
but not including reimbursable expenses, during the 12 months immediately preceding the event for which recovery from the Rights
Agent is being sought. In no event will the Rights Agent be liable for special, punitive, indirect, incidental or consequential
loss or damage of any kind whatsoever (including lost profits), even if the Rights Agent has been advised of the possibility or
likelihood of such loss or damage. The provisions of this Section 18 and Section 20 will survive the termination of this Plan,
the exercise, exchange or expiration of the Rights and the resignation, replacement or removal of the Rights Agent.

(b)       Reliance
by the Rights Agent. The Rights Agent is authorized
to rely conclusively on, and
will be protected and incur
no liability for, or in respect of, any
action taken, suffered or omitted
to be taken by
it in connection with its acceptance and
administration of this Plan, and
the exercise and performance of
its duties pursuant
to this Plan, in reliance upon any
(i) Rights Certificate; (ii) certificate (or registration on
the transfer books of the Company, including,
in the case of uncertificated shares,
by notation in book
entry accounts reflecting ownership) for Preferred Shares, Common
Shares or other securities of the Company
issuable upon exercise of
Rights; or (iii) instrument of assignment
or transfer, power of attorney,
endorsement, affidavit, letter, notice, direction,
consent, certificate, statement or other
paper or document reasonably believed
by it, in the absence
of gross negligence, bad
faith or willful misconduct (which
gross negligence, bad faith or
willful misconduct must be determined
by a final, non-appealable judgment of a
court of competent jurisdiction), to be
genuine and to be
duly executed and, where necessary,
verified or acknowledged, by the proper
Person, or otherwise upon the
advice of counsel as set forth in Section 20.
The Rights Agent will not be
required to take notice, or be deemed to have
any knowledge, of any
fact, event or determination of
which it was supposed to receive notice
hereunder (including any
dates or events defined in this
Plan or the designation of any Person
as an Acquiring Person or an Affiliate or Associate
of an Acquiring Person), and the
Rights Agent will be fully protected
and will incur no liability for failing
to take action in connection therewith,
unless and until it has
received such notice in writing.

    	31

     

    

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

(a)       Merger
or Consolidation of
Rights Agent. Any Person into which
the Rights Agent or
any successor Rights Agent may be
merged or with which it may effect a share exchange
or be consolidated, or any Person resulting
from any merger, share exchange or consolidation
to which the Rights Agent or
any successor Rights Agent is a party,
or any Person succeeding
to the corporate trust, stock transfer or
stockholder services business of the
Rights Agent or any
successor Rights Agent, will be
the successor to the Rights Agent
pursuant to this Plan without
the execution or filing of any
paper or any further act on
the part of any of
the parties hereto so long as such Person is eligible
for appointment as a successor Rights Agent
pursuant to the provisions of Section
21. The purchase of all
or substantially all of
the Rights Agent’s assets employed
in the performance of this Plan,
or transfer or rights
agent services generally, will be
deemed to be a merger, share exchange or consolidation
for purposes of this Section
19. If at the
time that such successor Rights Agent succeeds
to the agency created by this Plan any of the Rights Certificates have been countersigned but not delivered, then any such successor
Rights Agent may adopt the countersignature of any predecessor Rights Agent and deliver such Rights Certificates so countersigned,
and if at that time any of the Rights Certificates have not been countersigned, then 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. In all
such cases, such Rights Certificates will have the full force and effect provided in the Rights Certificates and in this Plan.

(b)       Change
of Name of Rights Agent.
If at any time the
name of the Rights Agent is changed
and at such time any of
the Rights Certificates have been
countersigned but not delivered, then
the Rights Agent may adopt the
countersignature under its
prior name and deliver such Rights
Certificates so countersigned, and if
at any time any
of the Rights Certificates have
not have been
countersigned, then the Rights Agent
may countersign such Rights Certificates
either in its prior name or
in its changed name. In
all such cases, such Rights Certificates
will have the full force and effect provided
in the Rights Certificates and
in this Plan.

Section 20. Duties of
Rights Agent. The Rights Agent undertakes to perform only the duties and obligations expressly imposed by this Plan (and no
implied duties or obligations) upon the following terms and conditions, all of which the Company and the holders of Rights Certificates,
by their acceptance thereof, will be bound:

(a)       Before
the Rights Agent acts or
refrains from acting, the Rights Agent
may consult with legal counsel
that it selects (who may be legal counsel
for the Company or an employee of the Rights
Agent), and the advice or opinion
of such counsel will be
full and complete authorization and
protection to the Rights Agent,
and the Rights Agent will incur
no liability for or in respect of, any
action taken, suffered or omitted
to be taken by
it in the absence of
gross negligence, bad faith or
willful misconduct (which gross negligence,
bad faith or willful misconduct
must be determined by a final, non-
appealable judgment of a court of
competent jurisdiction) in accordance
with such advice or opinion.

(b)       Whenever
in the performance of its
duties pursuant to this
Plan the Rights Agent deems it necessary
or desirable that any
fact or matter (including the identity
of any Acquiring Person and the
determination of the Current Per Share Market
Price of any security) be
proved or established
by the Company prior to taking,
suffering or omitting to take any
action hereunder, such fact or
matter (unless other evidence in respect thereof
is specifically prescribed herein) may be
deemed to be conclusively proved and established
by a certificate signed by
any one of
the Chairman of the Board, Chief
Executive Officer, President, Chief Financial
Officer, Secretary, Assistant Secretary or any
Senior Vice President of the Company and
delivered to the Rights Agent,
and such certificate will be full and complete
authorization and protection to the
Rights Agent, and the
Rights Agent will incur no liability for
or in respect of any
action taken, suffered or omitted
to be taken in the
absence of gross negligence,
bad faith or willful misconduct
(which gross negligence, bad faith or
willful misconduct must be determined by
a final, non-appealable judgment of a court of
competent jurisdiction) by it pursuant
to the provisions of this Plan in reliance upon
such certificate.

    	32

     

    

(c)       The
Rights Agent will not be
liable hereunder for or by reason
of any of
the statements of fact or
recitals contained in this Plan, the
Rights Certificates or any
certificate (or registration on the transfer books
of the Company, including, in the
case of uncertificated shares, by notation
in book entry accounts reflecting ownership)
for Preferred Shares, Common Shares or other
securities of the Company issuable upon
exercise of Rights, or be required to verify the
same (except, in each case, its countersignature
thereof, if applicable), and all such statements
and recitals are and will be deemed
to have been made by
the Company only.

(d)       The
Rights Agent will not (i) have
any liability for or
be under any responsibility in respect
of the validity of this Plan or the execution
and delivery hereof (except the due
authorization, execution and delivery hereof
by the Rights Agent)
or in respect of the validity or execution
of any Rights Certificate (except
its countersignature thereof) or any
certificate (or registration on the transfer books
of the Company, including, in the
case of uncertificated shares, by notation
in book entry accounts reflecting
ownership) for Preferred Shares, Common Shares or
other securities of the Company issuable
upon exercise of Rights
(except, in each case, its countersignature
thereof, if applicable); (ii) be responsible
for any change in the
exercisability or exchangeability of Rights
(including certain Rights becoming
null and void
pursuant to Section 7(e)), except
with respect to the exercise of Rights
evidenced by Rights Certificates
after notice of such change has
been provided by the Company; (iii) be
responsible for any breach by
the Company of any covenant or failure
by the Company to satisfy any condition
contained in this Plan or
any Rights Certificate; (iv) be
responsible for (A) any
adjustment or change required pursuant to
Section 3, Section
11, Section 13,
Section 23 or Section
24; (B) the manner, method
or amount of any such adjustment
or change; or (C) ascertaining the
existence of facts that
would require any such adjustment
or change (except with respect to the exercise
of Rights evidenced
by Rights Certificates after receipt by
the Rights Agent of a certificate
furnished pursuant to Section 12
describing such adjustment or
change); (v) be responsible
for any determination by the Board
of the Current Per Share Market Price of any
security pursuant to this Plan; or
(vi) by any act hereunder
be deemed to make any representation
or warranty as to the authorization or reservation
of any securities to be
issued pursuant to this Plan or
any Rights Certificate or
as to whether any such securities will, when issued,
be duly and
validly authorized and issued and
fully paid and nonassessable.

(e)       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
its duties pursuant
to this Plan.

(f)       The
Rights Agent is hereby authorized and directed
to accept instructions with respect to the
performance of its duties
hereunder from any of
the Chairman of the Board, Chief
Executive Officer, President, Chief Financial
Officer, Secretary, Assistant Secretary or any
Senior Vice President of the Company, and
it is authorized to apply to any
such director or officer for advice
or instructions in connection with its duties
pursuant to this Plan. Such advice
and instructions will be
full and complete authorization and
protection to the Rights Agent,
and the Rights Agent will not
be liable for or in respect of
any action taken, suffered or
omitted to be taken
by it in accordance with the
written advice or instructions of any such
director or officer or
for any delay in acting while waiting
for those instructions, in each case in the absence of its own gross negligence, bad faith or willful misconduct (which gross negligence,
bad faith or willful misconduct must be determined by a final, non-appealable judgment of a court of competent jurisdiction). The
Rights Agent will be fully and completely authorized and protected in relying on the latest-dated instructions received from any
such director or officer. 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, suffered or omitted to be taken by the Rights Agent pursuant
to this Plan and the date on or after which such action will be taken, suffered or omitted to be taken. The Rights Agent will not
be liable for any action taken or suffered by, or omission of, the Rights Agent in accordance with a proposal included in any such
application on or after (but not including) the date specified in such application (which date must not be less than five Business
Days after, but not including, the date on which any such director or officer of the Company actually receives such application,
unless any such director or officer has consented in writing to an earlier date) unless, prior to taking or suffering any such
action (or the effective date in the case of an omission), the Rights Agent has received, in response to such application, written
instructions with respect to the proposed action or omission specifying a different action to be taken, suffered or omitted to
be taken.

    	33

     

    

(g)       In
the event that the Rights Agent believes
any ambiguity or uncertainty
exists under this Plan or
in any notice, instruction, direction,
request or other communication, paper or document received by
the Rights Agent under this
Plan, the Rights Agent,
may, in its sole discretion, refrain from taking
any action, and
shall be fully protected and shall
not be liable in any
way to Company, the holder of
any Rights Certificate or
Book Entry Shares or any
other person for refraining from taking
such action, unless the
Rights Agent receives written instructions
signed by the Company that eliminates
such ambiguity or uncertainty to the
satisfaction of the Rights Agent.

(h)       The
Rights Agent and any member, stockholder,
director, officer, employee or Affiliate of
the Rights Agent (in each case, other than
an Acquiring Person) may buy, sell or
deal in any of
the Rights or other securities of
the Company or become pecuniarily interested in any
transaction in which the Company may be
interested, or contract
with or lend money to the
Company or otherwise act as fully and freely as though
it were not the Rights
Agent pursuant to this Plan. Nothing
herein will preclude the Rights
Agent or any such member, stockholder,
director, officer, employee or Affiliate from acting
in any other capacity
for the Company or for 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 (including
through its directors, officers and employees)
or by or through its attorneys or
agents, and the Rights
Agent will not be answerable or
accountable for any act, omission, default,
neglect or misconduct of
any such attorneys or
agents or for any loss to the Company,
to the holders of
Rights or to any
other Person resulting from any
such act, omission, default, neglect or
misconduct in the absence
of gross negligence, bad
faith or willful misconduct in the
selection and continued employment
thereof (which gross negligence, bad faith
or willful misconduct must be
determined by a final, non-appealable judgment
of a court of competent jurisdiction).

(j)       No
provision of this Plan requires 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
(other than costs and expenses incurred
by the Rights Agent in providing
services to the Company in the ordinary
course of its business as the
Rights Agent and for which the
Rights Agent shall be
compensated pursuant to Section 18)
or in the exercise of
its rights if it reasonably believes
that repayment of such funds or
adequate indemnification against such risk or
liability is not reasonably assured
to it.

(k)       If,
with respect to any Rights Certificate
surrendered to the Rights Agent for exercise
or transfer, the certificate contained
in the form of election to purchase
or form of assignment,
as the case may be, has either
(i) not been properly completed
or (ii) indicates an affirmative response
to clause (1) or clause
(2) thereof, then the Rights Agent will
not take any
further action with respect to such requested exercise or
transfer without first consulting with
the Company; provided, however,
that the Rights Agent shall
not be liable for any
delays arising from the duties under
this Section 20(k).

(l)       From
time to time after the Distribution Date,
upon the written request of
the Company, the Rights Agent will promptly
deliver to the Company a list,
as of the most recent practicable date
(or as of such earlier date as may be
specified by the Company), of
the record holders of Rights
and Rights Certificates.

(m)       The
Rights Agent will not be
required to take notice or be deemed to have notice
of any fact, event or determination
(including any dates or
events defined in this Plan or
the designation of any Person as an Acquiring Person or
an Affiliate or Associate of an Acquiring
Person) pursuant to this Plan unless
and until the Rights
Agent is specifically notified in writing of
such fact, event or determination by
the Company or by receipt of a properly completed
and duly executed Rights
Certificate (and form of election to purchase or
form of assignment).

(n)       The
Rights Agent may rely on and
be fully authorized and protected in
acting or failing to act upon
(i) any guaranty of signature
by an “eligible guarantor institution”
that is a member or participant in
the Securities Transfer Agents Medallion
Program or other comparable “signature guarantee
program” or insurance program
in addition to, or in substitution
for, the foregoing; or
(ii) any law, act, regulation or
any interpretation of the same even
though such law, act or regulation
may thereafter have been altered,
changed, amended or
repealed.

    	34

     

    

(o)       The
Rights Agent shall not
be liable or responsible for any
failure of the Company to comply with any
of its obligations
relating to any registration statement filed
with the Securities and Exchange
Commission or this Plan, including obligations
under applicable regulation or
law.

 

Section 21. Change of
Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties pursuant to this
Plan upon 30 days’ written notice to the Company (or such lesser notice as is acceptable to the Company) and to each transfer
agent of the Preferred Shares and the Common Shares (in the event that the Rights Agent or one of its Affiliates is not also such
transfer agent), delivered to the Company in accordance with Section 27. In the event that any transfer agency relationship in
effect between the Company and the Rights Agent or any of its Affiliates terminates, the Rights Agent will be deemed to have automatically
resigned, and be discharged from its duties pursuant to this Plan, on the effective date of such termination, and the Company will
be responsible for sending any required notices. The Company may remove the Rights Agent or any successor Rights Agent, with or
without cause, upon 30 days’ notice in writing to the Rights Agent or any successor Rights Agent, as the case may be, and
to each transfer agent of the Preferred Shares and the Common Shares (in the event that the Rights Agent or one of its Affiliates
is not also such transfer agent), delivered to the Rights Agent in accordance with Section 27. If the Rights Agent resigns or is
removed or otherwise becomes incapable of acting, then the resigning, removed or incapacitated Rights Agent must remit to the Company,
or to any successor Rights Agent, all books, records, funds (other than any funds owed to the Rights Agent or its Affiliates under
this Plan or under any other agreement or arrangement with the Company or its Affiliates), certificates or other documents or instruments
of any kind then in its possession that were acquired by such resigning, removed or incapacitated Rights Agent in connection with
its services as the Rights Agent; provided, however, that the Rights Agent may keep copies of same in accordance
with applicable law or its document retention policies or conventions. Following such removal, resignation or incapacity of the
Rights Agent, the Company will appoint a successor to the Rights Agent. If the Company fails to make such appointment within a
period of 30 days after giving written notice of such removal or after it has been notified in writing of such resignation or incapacity
by the resigning or incapacitated Rights Agent or by the registered holder of a Rights Certificate (who must, together with such
notice, submit such registered holder’s Rights Certificate for inspection by the Company), then such registered holder or
the incumbent Rights Agent may apply, at the Company’s expense, to a court of competent jurisdiction for the appointment
of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such court, must be either (a) a Person
organized, in good standing and doing business pursuant to the laws of the United States or any state of the United States that
is authorized pursuant to such laws to exercise corporate trust, stock transfer or stockholder services, is subject to supervision
or examination by federal or state authorities and has at the time of its appointment as Rights Agent a combined capital and surplus
of at least $50,000,000 or (b) an Affiliate or direct or indirect wholly owned Subsidiary of such Person. After appointment, the
successor Rights Agent will be vested with the same powers, rights, duties and responsibilities as if it had been originally named
as Rights Agent without further act or deed, and the predecessor Rights Agent must 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 such purpose, but such predecessor Rights Agent shall not be required to make any additional expenditure or assume any additional
liability in connection with the foregoing. Not later than the effective date of any such appointment, the Company will file notice
thereof in writing with the predecessor Rights Agent and each transfer agent of the Preferred Shares and the Common Shares (in
the event that the Rights Agent or one of its Affiliates is not also such transfer agent), and deliver such notice to the holders
of Rights Certificates in accordance with Section 27. Notwithstanding anything to the contrary in this Plan, failure to give any
notice provided for in this Section 21, or any defect therein, will 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. Upon appointment, any successor Rights
Agent will, unless the context requires otherwise, be deemed to be the Rights Agent for all purposes of this Plan.

 

    	35

     

    

Section 22. Issuance
of New Rights Certificates. Notwithstanding anything to the contrary in this Plan or the Rights, the Company may, at its option,
issue new Rights Certificates evidencing Rights in such form as may be approved by the Board to reflect any adjustment or change
in the Exercise Price and the number or kind or class of shares or other securities or property purchasable pursuant to the Rights
Certificates made in accordance with the provisions of this Plan. In addition, in connection with the issuance or sale of Common
Shares following the Distribution Date and prior to the Expiration Date, the Company will, with respect to Common Shares so issued
or sold (whether pursuant to the exercise of stock options or pursuant to any employee benefit plan or arrangement or upon the
exercise, conversion or exchange of other securities of the Company outstanding as of the Rights Dividend Declaration Date or upon
the exercise, conversion or exchange of securities issued by the Company after the Rights Dividend Declaration Date (except, in
each case, as may otherwise be provided in the instruments governing such securities)), and 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 (a) no such Rights Certificate will be issued if, and to the extent that, the Company
is advised by counsel that such issuance would create a significant risk of or result in material adverse tax consequences to the
Company or the Person to whom such Rights Certificate would be issued or would create a significant risk of or result in such options
or employee plans or arrangements failing to qualify for otherwise available special tax treatment; (b) no such Rights Certificate
will be issued if, and to the extent that, appropriate adjustment will otherwise have been made in lieu of the issuance thereof;
and (c) the Company will have no obligation to distribute Rights Certificates to any Acquiring Person, Affiliate or Associate of
an Acquiring Person, Post-Event Transferee, Pre-Event Transferee, Subsequent Transferee or any nominee of any of the foregoing.

 

Section 23. Redemption.

(a)       Right
to Redeem. The Board may, at its option,
at any time prior to the
earlier of (i) the Distribution
Date or (ii) the Close
of Business on
the Final Expiration Date, redeem all but
not less than all of
the then outstanding Rights at a redemption
price of $0.01 per Right,
as such amount may be appropriately
adjusted to reflect any stock split, stock dividend,
recapitalization or similar transaction
occurring after the Rights Dividend
Declaration Date (such redemption price, the
“Redemption Price”). Notwithstanding anything
to the contrary in this Plan, the
Rights will not be
exercisable after the first occurrence of
a Section 11(a)(ii) Event until
such time as the Company’s right of
redemption pursuant to this Section
23 has expired. The Company
may, at its option, pay
the Redemption Price in Common Shares
(based on the Current Per Share Market Price of
Common Shares at the time of
redemption), cash or any other
form of consideration deemed appropriate
by the Board, in its
sole discretion, to be at least equivalent
to the Redemption Price. Such redemption
of the Rights by
the Board may be made effective at such time, on
such basis and with such conditions as the
Board in its sole discretion may establish.
The date on which the Board elects
to make the redemption effective is referred
to as the “Redemption Date.”

(b)       General
Redemption Procedures. Immediately upon
the action of the Board ordering the redemption
of the Rights (or at such later
time as the Board may establish for the
effectiveness of such redemption), evidence of
which will have been filed with the
Rights Agent, and without
any further action and without any notice, the right to exercise the Rights will terminate and the only right thereafter of the
holders of Rights will be to receive the Redemption Price for each Right so held. The Company will promptly give public notice
of any such redemption (with prompt written notice thereof also provided to the Rights Agent). Promptly after the action of the
Board ordering the redemption of the Rights, the Company will give, or cause to be given, notice of such redemption to the holders
of Rights Certificates in accordance with Section 27; provided, however, that any notice that is so provided will
be deemed given, whether or not the holder receives the notice. Each such notice of redemption must state the method by which the
payment of the Redemption Price is to be made. The failure to give, or any defect in, any notice required by this Section 23 will
not affect the legality or validity of the action taken by the Board or of the redemption.

    	36

     

    

(c)       Discharge
of Obligations. Notwithstanding
anything to the contrary in this
Plan, in the event of a redemption pursuant
to Section 23(a), the Company may,
at its option, discharge
all of its obligations
with respect to the Rights by
(i) issuing a press release or making
a publicly-available filing with the
Securities and Exchange Commission
announcing the manner
of redemption of
the Rights and (ii) mailing
payment of the Redemption Price to the
holders of Rights
at the addresses of such holders
as shown on the transfer books of
the Rights Agent or, prior to the
Distribution Date, on the transfer books
of the Company or the transfer agent for
the Common Shares, and
upon such action, all
outstanding Rights Certificates will
be null and
void without any
further action by the Company.

(d)       Prohibited
Purchases. Notwithstanding anything to
the contrary in this Plan, neither
the Company nor any of
its Affiliates or Associates may redeem,
acquire or purchase for value
any Rights at any
time in any manner other than as
specifically set forth in this Section 23
or in Section 24, or
other than in connection with the
purchase or repurchase of Common
Shares prior to the Distribution
Date.

 

Section 24. Exchange.

(a)       Exchange
of Common Shares for Rights.
The Board may, at its option, at any
time after any Person becomes an Acquiring
Person, exchange all or
part of the then outstanding and exercisable
Rights (which will not include Rights that
have become null and
void pursuant to the
provisions of Section 7(e)) for Common Shares
at an exchange ratio of one
Common Share per Right,
appropriately adjusted to reflect any stock
split, stock dividend, recapitalization or
similar transaction occurring after the
Rights Dividend Declaration Date (such
exchange ratio, the “Exchange
Ratio,” and such determination
by the Board to effect such exchange, an
“Exchange Determination”). Notwithstanding
the foregoing, the
Board is not empowered to effect an Exchange
Determination at any time after any Person
(other than any
Exempt Person), together with all
Affiliates and Associates of such Person,
becomes the Beneficial
Owner of 50% or
more of the Common Shares then
outstanding. Notwithstanding the
foregoing, from and after the
occurrence of a Section 13
Event, any Rights that
theretofore have not been
exchanged pursuant to this
Section 24(a) will thereafter be exercisable
only in accordance with Section
13 and may not
be exchanged (or eligible for exchange)
pursuant to this Section
24(a).

 

    	37

     

    

(b)       Exchange
Procedures.

(i)       Immediately
following an Exchange Determination and
without any further action
or notice, the right to exercise such Rights
will terminate and the only
right thereafter of a holder
of such Rights is to receive that
number of Common Shares equal to
the number of such Rights held
by such holder multiplied by the Exchange
Ratio. The Company will promptly
give public notice of any
such exchange (with prompt written notice
thereof also provided to the
Rights Agent), and thereafter will
promptly give, or cause to be
given, notice of such exchange
to the holders of
the then outstanding Rights (other than
Rights that have become
null and void
pursuant to the provisions of Section
7(e)) by mailing such notice,
in accordance with Section 27;
provided, however, that
any notice that is so provided
will be deemed given, whether
or not the
holder receives the notice. Each
such notice of exchange must state the method
by which the exchange of Common
Shares for Rights is to be effected
(including the actions that must be taken
by the holders of
Rights to receive Common Shares in
exchange for Rights) and, in the
event of any partial exchange, the number
of Rights that are to be
exchanged. Any partial exchange will be
effected pro rata based on the number of Rights
(other than Rights
that have become null
and void pursuant
to the provisions of Section 7(e))
held by each holder of
Rights. Following an Exchange Determination,
the Company may implement such procedures
as it deems appropriate, in its sole discretion,
to minimize the possibility that
any Common Shares (or other consideration)
issuable pursuant to this Section
24 are received by Persons whose
Rights are null and
void pursuant to Section
7(e). Prior to effecting any exchange,
the Company may require, or cause the
trustee of the Trust to require, as a condition
thereof, that any registered holder
of Rights provide
such evidence (including the identity of the Beneficial
Owner (or former Beneficial Owner) thereof
and the Affiliates or Associates
of such Beneficial Owner or
former Beneficial Owner) as the Company
may reasonably request in order to determine if such Rights
are null and void
pursuant to Section 7(e). If
such registered holder does not
comply with the foregoing
requirements, then the Company will be
entitled to conclusively deem such
Rights to be Beneficially
Owned by an Acquiring Person (or an Affiliate or
Associate of an Acquiring Person, a Post-Event Transferee, a Pre-Event Transferee,
a Subsequent Transferee or any
nominee of any of
the foregoing) and, accordingly, such
Rights will be null
and void and
not exchangeable in connection
herewith. Any Common Shares (or other securities)
issued at the direction of
the Board in connection with an Exchange
Determination will be duly and
validly authorized and issued and
fully paid and nonassessable, and the
Company will be deemed to have
received as consideration for such issuance
a benefit having a value
that is at least equal to the aggregate
par value of the Common Shares (or
other securities) so issued. The failure
to give, or any defect in,
any notice required by
this Section 24 will not
affect the legality or validity of the action taken
by the Board or of such exchange.

(ii)       The
exchange of the Rights pursuant
to Section 24(a) may be made effective
at such time, on such basis and with such
conditions as the Board,
in its sole discretion, may establish. Without
limiting the foregoing, prior to effecting an exchange
pursuant to Section 24(a), the
Board may direct the Company to enter into
a trust agreement in such form and with such terms as the
Board approves (the “Trust Agreement”). If
the Board so directs, then the Company
must enter into the Trust Agreement
and must issue to the trust created by
such agreement (the “Trust”) all of
the Common Shares (or other consideration)
issuable pursuant to the exchange (or
any portion thereof that has not theretofore been issued in connection with the exchange). From and after the time at which such
Common Shares (or other consideration) are issued to the Trust, all stockholders then entitled to receive Common Shares (or other
consideration) pursuant to the exchange will be entitled to receive such shares or consideration (and any dividends or distributions
made thereon after the date on which such shares or consideration are deposited into the Trust) only from the Trust and solely
upon compliance with the relevant terms and provisions of the Trust Agreement.

    	38

     

    

(c)       Insufficient
Shares. In the event that
there are not sufficient Common Shares
issued but not outstanding or authorized but unissued
to permit any exchange of Rights as contemplated in accordance with Section 24(a), then
the Company will either take such action as
may be necessary to authorize additional Common
Shares for issuance upon exchange
of the Rights or alternatively,
at the option of
the Board, with respect to each Right
(i) pay cash in an amount equal to the Current Exchange Value
in lieu of issuing
Common Shares in exchange therefor; (ii) issue debt
or equity securities (or a combination thereof) having a value
equal to the Current Exchange Value
in lieu of issuing
Common Shares in exchange for each such Right, where the
value of such securities will be determined by
the Board based upon the advice of a nationally recognized
investment banking firm selected by
the Board, which determination
will be described in a written statement filed with the Rights
Agent and will be binding on
the Rights Agent and the holders of
Rights; or (iii) deliver any combination
of cash, property, Common Shares,
Preferred Shares, Equivalent Shares or other securities having a
value equal to the Current Exchange Value in exchange for each Right. To
the extent that the Company determines that some action need be taken
pursuant to this Section 24(c),
then the Board may temporarily suspend the exercisability of
the Rights for a period of
up to 120 days following the
date on which the Exchange Determination has occurred
in order to seek any authorization of additional Common Shares
or to decide the appropriate form of
distribution to be made pursuant to
the above provision and to
determine the value thereof. Upon any such
suspension, the Company will issue a public announcement
stating, and notify the Rights Agent
in writing, that the exercisability of
the Rights has been temporarily
suspended, as well as issue a public announcement, and
notify the Rights Agent
in writing, at such time as the suspension is
no longer in effect.

(d)       Cash
in Lieu of Fractional Common Shares.
In connection with an Exchange
Determination, the Company will not be
required to issue fractions of Common Shares
or to distribute certificates that
evidence fractional Common Shares. In lieu
of such fractional Common Shares,
the Company may pay to the
registered holders of Rights
Certificates with regard to which such fractional Common Shares would
otherwise be issuable an amount
in cash equal to the same fraction of
the Current Per Share Market Price of a Common
Share, calculated as of the Trading
Day immediately prior to the date of the Exchange
Determination

 

    	39

     

    

Section 25. Process to Seek Exemption Prior to Trigger
Event.

(a)       Waiver
Prior to a Stock Acquisition Date. Any Person who desires to effect any
acquisition of Common Stock that
would, if consummated, result in such Person
beneficially owning 4.9% or more of
the then outstanding Common Shares (a
 “Requesting Person”) may, prior to
the Stock Acquisition Date and in accordance with this Section 25(a), request that the Board grant an exemption with respect to
such acquisition under this Plan so that such Person would be deemed to be an “Exempt Person” under subsection (ii)
of Section 1(u) for purposes of this Plan (an “Exemption Request”). An Exemption Request must be in proper form
and must be delivered by overnight delivery service or first-class mail, postage prepaid, to the Secretary of the Company at the
principal executive office of the Company. The Exemption Request must be deemed made upon receipt by the Secretary of the Company.
To be in proper form, an Exemption Request must set forth (i) the name and address of the Requesting Person, (ii) the number and
percentage of Common Shares then Beneficially Owned by the Requesting Person, together with all Affiliates and Associates of the
Requesting Person, and (iii) a reasonably detailed description of the transaction or transactions by which the Requesting Person
would propose to acquire Beneficial Ownership of Common Shares aggregating 4.9% or more of the then outstanding Common Shares and
the maximum number and percentage of shares of Common Shares that the Requesting Person proposes to acquire. The Board will make
a determination whether to grant an exemption in response to an Exemption Request as promptly as practicable (and, in any event,
within ten (10) Business Days) after receipt thereof; provided, however, that the failure of the Board to make a
determination within such period will be deemed to constitute the denial by the Board of the Exemption Request. The Requesting
Person must respond promptly to reasonable and appropriate requests for additional information from the Board and its advisors
to assist the Board in making its determination.

For purposes of considering the Exemption
Request, 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, will be made pursuant
to and in accordance with Section 382. The Board will only grant an exemption in response to an Exemption Request if the Board
determines in its sole discretion that the acquisition of Beneficial Ownership of Common Shares by the Requesting Person (A) will
not adversely impact in any material respect the time period in which the Company could use the Tax Benefits or limit or impair
the availability to the Company of the Tax Benefits; or (B) is in the best interests of the Company despite the fact that it may
adversely impact in a material respect the time period in which the Company could use the Tax Benefits or limit or impair the availability
to the Company of the Tax Benefits. Any exemption granted hereunder may be granted in whole or in part, and may be subject to limitations
or conditions (including a requirement that the Requesting Person agree that it will not acquire Beneficial Ownership of Common
Shares in excess of the maximum number and percentage of shares approved by the Board), in each case as and to the extent the Board
determines necessary or desirable to provide for the protection of the Tax Benefits. Any Exemption Request may be submitted on
a confidential basis and, except to the extent required by applicable law, the Company will maintain the confidentiality of such
Exemption Request and the Board’s determination with respect thereto, unless the information contained in the Exemption Request
or the Board’s determination with respect thereto otherwise becomes publicly available. The Exemption Request will be considered
and evaluated by directors serving on the Board who are independent of the Company and the Requesting Person and disinterested
with respect to the Exemption Request, and the action of a majority of such independent and disinterested directors will be deemed
to be the determination of the Board for purposes of such Exemption Request.

    	40

     

    

(b)       Waiver
Subsequent to Stock Acquisition Date.
The Board may, of its own accord or
upon the request of
a stockholder (a “Waiver
Request”), subsequent to a Stock Acquisition
Date and prior to the Distribution
Date, and in accordance with this Section 25(b),
grant an exemption with respect to any Acquiring Person under this Plan so that such Acquiring Person would be deemed to be an
 “Exempt Person” under subsection (ii) of Section 1(u) for purposes of this Plan. A Waiver Request must be in proper
form and must be delivered by overnight delivery service or first-class mail, postage prepaid, to the Secretary of the Company
at the principal executive office of the Company. The Waiver Request will be deemed made upon receipt by the Secretary of the Company.
To be in proper form, a Waiver Request must set forth (i) the name and address of the Acquiring Person, (ii) the number and percentage
of Common Shares then Beneficially Owned by the Acquiring Person, together with all Affiliates and Associates of the Acquiring
Person, and (iii) a reasonably detailed description of the transaction or transactions by which the Acquiring Person acquired Beneficial
Ownership of Common Shares aggregating 4.9% or more of the then outstanding Common Stock and the maximum number and percentage
of Common Shares that the Acquiring Person proposes to acquire. The Board will make a determination whether to grant an exemption
in response to a Waiver Request as promptly as practicable (and, in any event, within 10 Business Days) after receipt thereof;
provided, however, that the failure of the Board to make a determination within such period will be deemed to constitute
the denial by the Board of the Waiver Request. The Acquiring Person must respond promptly to reasonable and appropriate requests
for additional information from the Board and its advisors to assist the Board in making its determination. For purposes of considering
the Waiver Request, 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, will be made
pursuant to and in accordance with Section 382. The Board will only grant an exemption for an Acquiring Person if the Board determines
in its sole discretion that the acquisition of Beneficial Ownership of Common Stock by such Acquiring Person does not adversely
impact in any material respect the time period in which the Company could use the Tax Benefits or limit or impair the availability
to the Company of the Tax Benefits. Any exemption granted hereunder may be granted in whole or in part, and may be subject to limitations
or conditions (including a requirement that such Acquiring Person agree that it will not acquire Beneficial Ownership of Common
Shares in excess of the maximum number and percentage of shares approved by the Board), in each case as and to the extent the Board
determines necessary or desirable to provide for the protection of the Tax Benefits. The facts and circumstances with respect to
the Triggering Event, including whether to grant an exemption, will be considered and evaluated by directors serving on the Board,
or a duly constituted committee thereof, who are independent of the Company and such Acquiring Person and disinterested with respect
to the Triggering Event, and the action of a majority of such independent and disinterested directors will be deemed to be the
determination of the Board for purposes of any exemption granted pursuant to this Section 25(b).

 

    	41

     

    

Section 26. Notice of Certain Events.

(a)       Certain
Distributions. If the Company
proposes, at any time after the
Distribution Date, to (i) declare or pay
any dividend payable in stock
of any class to the
holders of Preferred Shares or
to make any other distribution to the
holders of Preferred Shares (other
than a regular quarterly or
periodic cash dividend out of
earnings or retained earnings
of the Company); (ii) offer to the
holders of 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) effect any reclassification of the Preferred Shares (other
than a reclassification involving only the subdivision of outstanding Preferred Shares); (iv) effect any share exchange, consolidation
or merger into or with any other Person (other than a wholly owned Subsidiary of the Company in a transaction that complies with
Section 11(l)); (v) effect any sale or other transfer (or permit one or more of its Subsidiaries to effect any sale or other transfer),
in one transaction or a series of related transactions, of more than 50% of the assets, cash flow or earning power of the Company
and its Subsidiaries (taken as a whole) to any other Person; (vi) effect the liquidation, dissolution or winding up of the Company;
(vii) declare or pay any dividend on the Common Shares payable in Common Shares; or (viii) 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 will give written notice of such proposed action to the Rights Agent and the holders of Rights Certificates
in accordance with Section 27, which notice must specify the record date for the purposes of such stock dividend, distribution
of rights or warrants, or the date on which such subdivision, combination, reclassification, share exchange, consolidation, merger,
sale, transfer, liquidation, dissolution or winding up is to take place and the date of participation therein by the holders of
Preferred Shares or Common Shares, if any such date is to be fixed, and such notice must be so given in the case of any action
covered by clause (i) or (ii) above at least 10 Business Days prior to but not including the record date for determining holders
of Preferred Shares for purposes of such action, and in the case of any such other action, at least 10 Business Days prior to but
not including the date of the taking of such proposed action or the date of participation therein by the holders of Preferred Shares
or Common Shares, whichever is earlier.

(b)       Certain
Events. If any Triggering Event
has occurred, then (i) the Company
will as soon as practicable thereafter give,
or cause to be given, to each holder
of Rights Certificates a notice
in accordance with Section 27
of the occurrence of such Triggering Event,
which notice must specify the event and
the consequences of the event to holders
of Rights pursuant
to Section 11(a)(ii) or Section
13; and (ii) all
references in this Section 26
to Preferred Shares will thereafter be deemed to be
references to Common Shares or, if appropriate,
other securities.

 

    	42

     

    

Section 27. Notices.
Notices or demands authorized by this Plan to be given or made by the Rights Agent or by the holder of any Rights Certificate (or,
prior to the Distribution Date, of any Common Share) to or on the Company will be sufficiently given or made if in writing and
when sent by a recognized national overnight delivery service or first-class mail, postage prepaid, addressed (in each case, until
another address is filed in writing with the Rights Agent by the Company) as follows:

Aviat Networks, Inc.

200C Parker Dr. Suite 100A Austin

Texas 78728

Attn: Erin Boase, Vice President, Legal Affairs

 

Subject to the provisions
of Section 21, any notice or demand authorized by this Plan to be given or made by the Company or by the holder of any Rights Certificate
(or, prior to the Distribution Date, of any Common Share) to or on the Rights Agent will be sufficiently given or made if in writing
and sent by a recognized national overnight delivery service or first-class mail, postage prepaid, addressed (in each case, until
another address is filed in writing with the Company by the Rights Agent) as follows:

Computershare Inc.

150 Royall Street

Canton, MA 02021

Attn: Client Services

 

Notices or demands authorized
by this Plan to be given or made by the Company or the Rights Agent to the holders of Rights or Rights Certificates (or, if prior
to the Distribution Date, to the holders of Common Shares) will be sufficiently given or made if in writing and when sent by a
recognized national overnight delivery service or first-class mail, postage prepaid, addressed to such holder at the address of
such holder as shown on the transfer books of the Rights Agent or the Company or the transfer agent for the Common Shares. Any
notice that is sent or mailed in the manner herein provided will be deemed given whether or not the holder receives the notice.
Notwithstanding anything to the contrary in this Plan, prior to the Distribution Date, the issuance of a press release or the making
of a publicly-available filing by the Company with the Securities and Exchange Commission will constitute sufficient notice by
the Rights Agent or the Company to the holders of securities of the Company, including the Rights, for all purposes of this Plan
and no other notice need be given.

 

    	43

     

    

Section 28. Supplements
and Amendments. Prior to the occurrence of a Distribution Date, the Company may in its sole discretion supplement or amend
this Plan in any respect without the approval of any holders of Rights Certificates, Preferred Shares or Common Shares, and the
Rights Agent must, if the Company so directs, execute such supplement or amendment. From and after the occurrence of a Distribution
Date, the Company and the Rights Agent may from time to time supplement or amend this Plan without the approval of any holders
of Rights Certificates in order to (i) cure any ambiguity; (ii) correct or supplement any provision contained herein that may be
defective or inconsistent with any other provisions herein or otherwise defective, including any change in order to satisfy any
applicable law, rule or regulation; (iii) shorten or lengthen any time period hereunder; or (iv) change or supplement the provisions
hereunder in any manner that the Company may deem necessary or desirable and that does not adversely affect the interests of the
Rights Agent or the holders of Rights (other than an Acquiring Person, an Affiliate or Associate of an Acquiring Person, a Post-Event
Transferee, a Pre-Event Transferee, a Subsequent Transferee or any nominee of any of the foregoing), including extending the Final
Expiration Date; provided, however, that this Plan may not be supplemented or amended to lengthen, pursuant to clause
(iii) of this sentence, a time period relating to when the Rights may be redeemed at a time when the Rights are not then redeemable;
provided further, however, that the right of the Board to extend the Distribution Date does not require any amendment
or supplement hereunder. Upon the delivery of a certificate from the Chairman of the Board, Chief Executive Officer, President,
Chief Financial Officer, Secretary, Assistant Secretary or any Senior Vice President of the Company that states that the proposed
supplement or amendment is in compliance with the terms of this Section 28. Notwithstanding anything to the contrary in this Plan,
the Rights Agent may, but will not be required to, execute any such supplement or amendment that it has determined would adversely
affects its rights, duties, obligations or immunities under this Plan. No supplement or amendment to this Plan shall be effective
unless duly executed by the Rights Agent. Prior to the Distribution Date, the interests of the holders of Rights and Rights Certificates
will be deemed to be coincident with the interests of the holders of Common Shares.

 

Section 29. Successors.
All the covenants and provisions of this Plan by or for the benefit of the Company or the Rights Agent will bind and inure to the
benefit of their respective successors and assigns hereunder.

 

Section 30. Determinations
and Actions by the Board. Without limiting any of the rights and immunities of the Rights Agent, the Board (or an authorized
committee thereof) has the exclusive power and authority to administer this Plan and to exercise all rights and powers specifically
granted to the Board or the Company pursuant hereto, or as may be necessary or advisable in the administration of this Plan, including
the right and power to (a) interpret the provisions of this Plan and (b) make all determinations deemed necessary or advisable
for the administration of this Plan (including a determination as to whether to redeem the Rights or to amend this Plan). All such
actions, calculations, interpretations and determinations (including, for purposes of clause (ii) below, all omissions with respect
to the foregoing) that are done or made by the Board (or an authorized committee thereof) in good faith will (i) be final, conclusive
and binding on the Company, the Rights Agent (except with respect to the rights, obligations, duties and immunities of the Rights
Agent under this Plan), the holders of Rights Certificates and all other Persons; and (ii) not subject the Board (or an authorized
committee thereof) or any of the directors serving on the Board to any liability to any Person, including the Rights Agent and
the holders of Rights Certificates. In administering this Plan and exercising the rights and powers specifically granted to the
Board and to the Company hereunder, and in interpreting this Plan and making any determination hereunder, the Board (or an authorized
committee thereof) may consider any and all facts, circumstances or information that it deems to be necessary, useful or appropriate.
The Rights Agent is always entitled to assume that the Board acted in good faith and will be fully protected and incur no liability
in reliance thereon.

 

Section 31. Benefits of
this Plan. Nothing in this Plan may be construed to give to any Person other than the Company, the Rights Agent and the registered
holders of Rights Certificates (and, prior to the Distribution Date, the registered holders of Common Shares) any legal or equitable
right, remedy or claim pursuant to this Plan. This Plan is for the sole and exclusive benefit of the Company, the Rights Agent
and the registered holders of Rights Certificates (and, prior to the Distribution Date, the registered holders of Common Shares).

    	44

     

    

Section 32. Severability.
If any term, provision, covenant or restriction of this Plan 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 Plan will remain
in full force and effect and will in no way be affected, impaired or invalidated; provided, however, that notwithstanding
anything to the contrary in this Plan, if any such term, provision, covenant or restriction is held by such court or authority
to be invalid, void or unenforceable and the Board determines in its good faith judgment that severing the invalid language from
this Plan would adversely affect the purpose or effect of this Plan, then the right of redemption set forth in Section 23 will
be reinstated and will not expire until the Close of Business on the 10th Business Day following the date of such determination
by the Board; provided, further, that if such excluded provision shall affect the rights, immunities, liabilities,
duties or obligations of the Rights Agent, then the Rights Agent shall be entitled to resign immediately upon written notice to
the Company.

 

Section 33. Governing Law; Exclusive Jurisdiction.

(a)       Governing
Law. This Plan and each
Right and Rights
Certificate issued hereunder will be
deemed to be a contract made pursuant
to the laws of the State of
Delaware and for all purposes will
be governed by
and construed in accordance with
the laws of the State of
Delaware applicable to contracts made
and to be performed entirely
within the State of Delaware.

(b)       Exclusive
Jurisdiction.

(i)       The
Company and the
registered holders of Rights
Certificates (and, prior to the
Distribution Date, the registered holders
of Common Shares) each hereby irrevocably
submits to the exclusive jurisdiction
of the Court of
Chancery of the State of
Delaware, or, if such court lacks subject matter jurisdiction,
the United States District Court for the
District of Delaware, over any
suit, action or proceeding arising
out of or relating
to or concerning this
Plan. The Company and the
registered holders of Rights
Certificates (and, prior to the Distribution
Date, the registered holders of
Common Shares) each acknowledge that the
forum designated by this Section
33(b)(i) has a reasonable relation to this
Plan and to such Persons’ relationship
with one another.

(ii)       The
Company and the
registered holders of Rights
Certificates (and, prior to the Distribution
Date, the registered holders of
Common Shares) each hereby waive, to the fullest
extent permitted by applicable law, any
objection that they now or
hereafter have to personal jurisdiction
or to the laying of venue
of any such suit,
action or proceeding brought
in any court referred to in Section 33(b)(i)
(or the appellate courts thereof). The Company
and the registered holders
of Rights Certificates (and, prior
to the Distribution Date, the
registered holders of Common
Shares) each undertake not to commence
any action subject
to this Plan in any forum other
than the forum described in Section 33(b)(i). The Company
and the registered holders
of Rights Certificates (and, prior
to the Distribution Date, the
registered holders of Common
Shares) each hereby agree that, to the
fullest extent permitted by applicable
law, a final and non-appealable judgment
in any such suit, action
or proceeding brought in any
such court will be conclusive and binding
upon such Persons.

Section 34. Counterparts.
This Plan and any supplements or amendments hereto may be executed in any number of counterparts and each of such counterparts
will for all purposes be deemed to be an original, and all such counterparts will together constitute one and the same instrument,
it being understood that all parties need not sign the same counterpart. A signature to this Plan transmitted electronically (including
by fax and .pdf) will have the same authority, effect and enforceability as an original signature. No party hereto may raise the
use of such electronic transmission to deliver a signature, or the fact that any signature or agreement or instrument was transmitted
or communicated through such electronic transmission, as a defense to the formation of a contract, and each party forever waives
any such defense, except to the extent such defense relates to lack of authenticity.

 

    	45

     

    

Section 35. Descriptive Headings; Interpretation.

(a)       Descriptive
Headings. The table
of contents and descriptive headings
of the several Sections of
this Plan are inserted for convenience only
and will not control
or affect the meaning
or construction of
any of the provisions hereof.

(b)       Interpretation.

(i)       Unless
otherwise indicated, all references herein
to Sections or Exhibits will be
deemed to refer to Sections or Exhibits
of or to this Plan, as applicable.
Any capitalized terms used in any Exhibit
but not otherwise defined therein have
the meaning set forth in this Plan.
All Exhibits attached hereto or
referred to herein are hereby incorporated in and
made a part of this Plan as if fully set forth herein.

(ii)       Unless
otherwise indicated, the words “include,”
“includes” and “including,”
when used herein, are deemed in each case to be
followed by the words “without limitation.”

(iii)       The
words “hereof,” “herein,” “herewith” and words of
similar import will, unless otherwise stated,
be constructed to refer to this
Plan as whole and not to any
particular provision of this Plan.

(iv)       The
word “or” is used in the inclusive sense of
 “and/or.” Unless the context requires otherwise, the
terms “or,” “any” and
 “either” are not exclusive.

(v)       Whenever
the context may require, any pronouns
used in this Plan include the
corresponding masculine, feminine or neuter
forms, and the singular form of nouns and pronouns includes the plural and vice versa.

(vi)       Where
a word or phrase is defined, each of
its other grammatical forms has
a corresponding meaning.

(vii)       References
to “$” are to the lawful currency
of the United States of America.

(viii)       References
to any statute will be deemed to refer to
such statute as amended from time to time
and any rules or regulations promulgated
thereunder. References to any agreement or
contract will be to that
agreement or contract as amended,
modified or supplemented from time to time.

 

Section 36. Costs of
Enforcement. The Company agrees with each registered holder of Rights Certificates (and, prior to the Distribution Date, the
registered holders of Common Shares) that if the Company or any other Person the securities of which are purchasable upon exercise
of the Rights fails to fulfill any of its obligations pursuant to this Plan, then the Company or such other Person must reimburse
any registered holder of Rights Certificates for the costs and expenses (including legal fees) incurred by such holder in any action
to enforce such holder’s rights pursuant to any Right or this Plan.

 

Section 37. Force Majeure.
Notwithstanding anything to the contrary in this Plan, the Rights Agent will not be liable for any delays or failures in performance
resulting from acts beyond its reasonable control, including fires, floods, natural disasters, acts of God, terrorist acts, shortage
of supply, legal restrictions, breakdowns or malfunctions, interruptions or malfunction of computer facilities, or loss of data
due to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war or civil
unrest.

 

    	46

     

    

Section 38. USA
PATRIOT Act. The Company acknowledges that the Rights Agent is subject to the customer identification program requirements
pursuant to the USA PATRIOT Act and its implementing regulations, and that the Rights Agent must obtain, verify and record information
that allows the Rights Agent to identify the Company. Accordingly, prior to accepting an appointment hereunder, the Rights Agent
has received information from the Company that will help the Rights Agent to identify the Company, including the Company’s
physical address, tax identification number, organizational documents, certificate of good standing, license to do business or
such other information that the Rights Agent deems necessary and, pending verification of such received information, the Rights
Agent may request additional such information. The Company agrees to provide all reasonably requested information necessary for
the Rights Agent to verify the Company’s identity in accordance with such customer identification program requirements.

 

[Signature page follows.]

 

    	47

     

    

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

 

	 	AVIAT NETWORKS, INC.
	 	 
	 	By:	
        /s/ Walter Stanley Gallagher,
        Jr.

	 	 	Name:	Walter Stanley Gallagher, Jr.
	 	 	Title:	Chief Operating Officer and Principal Financial Officer

 

 

	 	COMPUTERSHARE, INC.
	 	 
	 	By:	
        /s/ Patrick Hayes

	 	 	Name:	Patrick Hayes
	 	 	Title:	Manager, Contract Administration

 

[Signature Page to Tax Benefit Preservation
Plan]

    	48

     

    

EXHIBIT A

 

FORM OF

CERTIFICATE OF DESIGNATION
OF RIGHTS, PREFERENCES AND PRIVILEGES OF SERIES A PARTICIPATING PREFERRED STOCK OF

AVIAT NETWORKS, INC.

 

 

 

Pursuant to Section 151 of the

General Corporation Law of
the State of Delaware

 

 

 

Aviat Networks, Inc., a
corporation organized and existing under the General Corporation Law of the State of Delaware (the “Corporation”),
in accordance with the provisions of Section 103 thereof, does hereby certify:

 

That
pursuant to the authority conferred upon the Board of Directors of the Corporation (the “Board”) by the Amended
and Restated Certificate of Incorporation of the Corporation, as amended, on September 6, 2016, the Board adopted the following
resolutions creating a series of preferred stock, par value $0.01 per share (“Preferred Stock”), of the Corporation
designated as Series A Participating Preferred Stock:

 

RESOLVED: That pursuant
to the authority vested in the Board by the Amended and Restated Certificate of Incorporation of the Corporation, as amended (the
 “Charter”), the Board does hereby provide for the issuance of a series of Preferred Stock of the Corporation
and does hereby fix and herein state and express the designations, powers, preferences and relative and other special rights, and
the qualifications, limitations and restrictions, of such series of Preferred Stock as follows:

 

Section 1. Designation
and Amount. The shares of such series shall be designated as “Series A Participating Preferred Stock.” The
Series A Participating Preferred Stock shall have a par value of $0.01 per share, and the number of shares constituting such series
shall be 100,000. Such number of shares may be increased or decreased by resolution of the Board; provided, however,
that no decrease shall reduce the number of shares of Series A Participating 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 exercise of any options, rights or warrants issuable upon conversion of any outstanding securities issued by the Corporation
convertible into Series A Participating Preferred Stock.

 

Section 2. Proportional
Adjustment. In the event that the Corporation shall at any time after the issuance of any share or shares of Series A Participating
Preferred Stock (the “Rights Declaration Date”) (a) declare any dividend on the common stock of the Corporation,
par value $0.01 per share (the “Common Stock”), payable in shares of Common Stock, (b) subdivide the outstanding
Common Stock or (c) combine the outstanding Common Stock into a smaller number of shares, then in each such case the Corporation
shall simultaneously effect a proportional adjustment to the number of outstanding shares of Series A Participating Preferred
Stock by an amount the numerator of which is the number of shares of Common Stock outstanding immediately after such event and
the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

    	A-1

     

    

Section 3. Dividends and Distributions.

(a)       Subject
to Section 2 and to the
prior and superior rights of the holders
of any shares of
any series of Preferred Stock ranking
prior and superior to the shares of
Series A Participating Preferred Stock with respect to dividends,
the holders of shares of
Series A Participating Preferred Stock shall
be entitled to receive, when, as and if
declared by the Board out of
funds legally available for the
purpose, quarterly dividends payable
in cash on the last day of
October, January, April and July in each year
(each such date being referred to herein as a “Quarterly Dividend Payment
Date”), commencing on the first
Quarterly Dividend Payment Date after the first
issuance of a share or
fraction of a share of Series A
Participating Preferred Stock, in an amount
per share (rounded to the nearest
cent) equal to the
greater of (i) $1.00 and (ii) subject
to Section 2, 1,000
times the aggregate per share amount
of all cash dividends, and
1,000 times the aggregate per share
amount (payable in kind)
of all non-cash dividends
or other distributions other than a dividend
payable in shares of Common
Stock or a subdivision of the outstanding
shares of Common Stock (by reclassification
or otherwise), declared on the Common
Stock since the immediately
preceding Quarterly Dividend Payment Date, or, with respect to the
first Quarterly Dividend Payment Date, since
the first issuance of
any share or fraction of
a share of Series A Participating Preferred
Stock.

(b)       The
Corporation shall declare a dividend or
distribution on the Series A Participating Preferred Stock as provided
in paragraph (a) above immediately after
it declares a dividend or distribution on the Common
Stock (other than a dividend
payable in shares of Common
Stock); provided, however,
that, in the event that no dividend
or distribution shall have
been declared on the Common
Stock during the period
between any Quarterly Dividend Payment
Date and the next subsequent Quarterly Dividend
Payment Date, a dividend of $1.00
per share on the Series A Participating
Preferred Stock shall nevertheless be payable on
such subsequent Quarterly Dividend Payment
Date.

(c)       Dividends
shall begin to accrue and
be cumulative on outstanding shares of
Series A Participating Preferred Stock from the
Quarterly Dividend Payment Date next
preceding the date of issue of
such shares of Series A Participating
Preferred Stock, unless the date of issue
of such shares is prior to the
record date for the first Quarterly
Dividend Payment Date, in which case dividends
on such shares shall begin
to accrue from the date of issue of such
shares, or unless the
date of issue is a Quarterly Dividend Payment Date or
is a date after the record date
for the determination of
holders of shares of
Series A Participating Preferred Stock entitled
to receive a quarterly dividend and before
such Quarterly Dividend Payment Date, in either
of which events such dividends shall
begin to accrue and be
cumulative from such Quarterly Dividend Payment Date. Accrued but
unpaid dividends shall not bear
interest. Dividends paid on the shares of
Series A Participating Preferred Stock in an amount
less than the total amount of such dividends
at the time accrued and payable
on such shares shall be allocated
pro rata on a share-by-share basis among
all such shares at the time outstanding. The Board may fix a record date for the determination of holders of shares of
Series A Participating Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record
date shall be no more than 60 days prior to the date fixed for the payment thereof.

    	A-2

     

    

Section 4. Voting Rights. The holders of shares
of Series A Participating Preferred Stock shall have the following voting rights:

(a)       Subject to the provision for adjustment hereinafter
set forth, each share of Series A Participating Preferred
Stock shall entitle the holder thereof
to 1,000 votes on all
matters submitted to a vote of
the stockholders of the Corporation. In the
event that the Corporation shall at any
time after the Rights Declaration Date
(i) declare any dividend on Common
Stock payable in shares of Common
Stock, (ii) subdivide the
outstanding Common Stock or (iii)
combine the outstanding Common Stock
into a smaller number of shares, then in each such case the number of votes per share
to which holders of shares of Series A Participating Preferred
Stock were entitled immediately prior to
such event shall be adjusted by
multiplying such number by a fraction the numerator of
which is the number of shares of Common Stock
outstanding immediately after such
event and the denominator of which is
the number of shares of Common Stock
that were outstanding immediately prior to
such event.

(b)       Except
as otherwise provided herein, in
any other Certificate of
Designation creating a series of Preferred
Stock or any similar stock,
the Charter or the Amended and
Restated Bylaws of the Corporation
(the “Bylaws”), or by law, the
holders of shares of
Series A Participating Preferred Stock and the
holders of shares of
Common Stock shall vote
together as one class on
all matters submitted to a vote
of stockholders of the Corporation.

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

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

(ii)       During
any default period, such voting right
of the holders of
Series A Participating Preferred Stock may be
exercised initially at a special meeting called
pursuant to subparagraph (iii)of this Section
4(d) or at any annual
meeting of stockholders,
and thereafter at annual meetings of
stockholders; provided, however,
that such voting right
shall not be exercised unless
the holders of at least one-third in number of shares of Preferred Stock outstanding shall be present in person or by proxy. The
absence of a quorum of the holders of Common Stock shall not affect the exercise by the holders of Preferred Stock of such voting
right. At any meeting at which the holders of Preferred Stock shall exercise such voting right initially during an existing default
period, they shall have the right, voting as a class, to elect directors to fill such vacancies, if any, in the Board as may then
exist up to two directors or, if such right is exercised at an annual meeting of stockholders, to elect two directors. If the number
that may be so elected at any special meeting does not amount to the required number, the holders of Preferred Stock shall have
the right to make such increase in the number of directors as shall be necessary to permit the election by them of the required
number. After the holders of Preferred Stock shall have exercised their right to elect directors in any default period and during
the continuance of such period, the number of directors shall not be increased or decreased except by vote of the holders of Preferred
Stock as herein provided or pursuant to the rights of any equity securities ranking senior to or pari passu with the Series A Participating
Preferred Stock.

    	A-3

     

    

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

(iv)       In
any default period, the holders
of Common Stock and
other classes of stock
of the Corporation, if applicable,
shall continue to be
entitled to elect the whole number
of directors until the holders
of Preferred Stock shall have
exercised their right to elect two directors
voting as a class, after the exercise of
which right (A) the
directors so elected by the holders
of Preferred Stock shall continue
in office until their successors shall
have been elected by
such holders or until
the expiration of
the default period, and (B) any vacancy
in the Board may (except as provided in
subparagraph (ii) of this

Section 4(d)) be filled by vote of a majority
of the remaining directors theretofore elected by the holders of the class of stock that elected the director whose office shall
have become vacant. References in this Section 4(d) to directors elected by the holders of a particular class of stock shall include
directors elected by such directors to fill vacancies as provided in clause (B) of the foregoing sentence.

(v)       Immediately
upon the expiration
of a default period, (A)
the right of
the holders of Preferred Stock as
a class to elect directors shall cease, (B) the
term of any directors elected
by the holders of
Preferred Stock as a class shall terminate and
(C) the number of directors shall be
such number as may be provided for in the
Charter or the Bylaws irrespective of any
increase made pursuant to the provisions of
subparagraph (ii) of this Section
4(d) (such number being subject, however,
to change thereafter in any manner provided
by law or in the
Charter or Bylaws). Any vacancies in the
Board effected by the provisions of clauses
(B) and (C) in the preceding
sentence may be filled by a majority
of the remaining directors.

 

    	A-4

     

    

Section 5. Certain Restrictions.

(a)       The
Corporation shall not declare any
dividend on, make any distribution
on, or redeem or
purchase or otherwise acquire for consideration
any shares of Common Stock after
the first issuance of
a share or fraction of a share of
Series A Participating Preferred Stock unless concurrently
therewith it shall declare a dividend on
the Series A Participating Preferred Stock as required by
Section 3 hereof.

(b)       Whenever
quarterly dividends or other dividends
or distributions payable on the Series A Participating
Preferred Stock as provided in Section 3
hereof are in arrears, thereafter and until
all accrued and unpaid
dividends and distributions, whether
or not declared,
on shares of Series A Participating
Preferred Stock outstanding shall have
been paid in full, the
Corporation shall not:

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

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

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

(iv)       redeem
or purchase or otherwise acquire
for consideration any shares of Series A
Participating Preferred Stock, or
any shares of stock
ranking on a parity with the Series
A Participating Preferred Stock, except
in accordance with a purchase offer made in writing or
by publication (as determined by the Board)
to all holders of such shares upon
such terms as the Board, 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.

(c)       The
Corporation shall not permit any
subsidiary of the Corporation to
purchase or otherwise acquire for consideration
any shares of stock of
the Corporation unless the Corporation
could, pursuant to paragraph (a) of
this Section 5, purchase or
otherwise acquire such shares at such time and
in such manner.

 

Section 6. Reacquired
Shares. Any shares of Series A Participating Preferred Stock purchased or otherwise acquired by the Corporation in any manner
whatsoever shall be retired and cancelled promptly after the acquisition thereof. All such shares shall upon their cancellation
become authorized but unissued shares of Preferred Stock and may be reissued as part of a new series of Preferred Stock to be created
by resolution or resolutions of the Board, subject to the conditions and restrictions on issuance set forth herein, in the Charter
or in any other Certificate of Designation creating a series of Preferred Stock or any similar stock or as otherwise required by
law.

 

    	A-5

     

    

Section 7. Liquidation, Dissolution or Winding Up.

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

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

(c)       In
the event that the Corporation shall at
any time after the Rights
Declaration Date (i) declare any dividend
on the Common Stock payable
in shares of Common Stock, (ii) subdivide
the outstanding Common Stock or
(iii) combine the outstanding Common Stock
into a smaller number of shares, then
in each such case the Corporation shall
simultaneously effect a proportional adjustment
to the Adjustment Number in effect immediately
prior to such event by an amount 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. Consolidation,
Merger, etc. In the event that the Corporation shall enter into any consolidation, merger, combination, conversion, share exchange
or other transaction in which the shares of Common Stock are exchanged for or changed into other stock, securities, cash and/or
any other property (payable in kind), then in any such case the shares of Series A Participating Preferred Stock shall at the same
time be similarly exchanged or changed in an amount per share (subject to Section 2) 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.

 

Section 9. No Redemption. The shares of Series
A Participating Preferred Stock shall not be redeemable.

 

Section 10. Ranking.
The Series A Participating Preferred Stock shall rank junior to all other series of the Preferred Stock as to the payment of dividends
and the distribution of assets, unless the terms of any such series shall provide otherwise.

 

    	A-6

     

    

Section 11. Amendment.
At any time when any shares of Series A Participating Preferred Stock are outstanding, neither the Charter nor this Certificate
of Designation shall be amended in any manner that would materially alter or change the powers, preferences or special rights of
the Series A Participating Preferred Stock so as to affect them adversely without the affirmative vote of the holders of at least
two-thirds of the outstanding shares of Series A Participating Preferred Stock, voting separately as a class.

 

Section 12. Fractional
Shares. Series A Participating Preferred Stock may be issued in fractions of a share that shall entitle the holder, in proportion
to such holder’s fractional shares, to exercise voting rights, receive dividends, participate in distributions and to have
the benefit of all other rights of holders of Series A Participating Preferred Stock.

IN WITNESS WHEREOF, the undersigned has executed
this Certificate as of the 7th day of September, 2016.

 

	 	AVIAT NETWORKS, INC.
	 	 
	 	By:	
        /s/ Ralph S. Marimon

	 	 	Name:	Ralph S. Marimon
	 	 	Title:	Senior Vice President and Chief Financial Officer

 

    	A-7

     

    

EXHIBIT B

 

FORM OF

RIGHTS CERTIFICATE

 

Certificate No. R-[•][•]
Rights

 

NOT EXERCISABLE
AFTER MARCH 3, 2023, OR
SUCH EARLIER DATE AS THE RIGHTS ARE REDEEMED, EXCHANGED
OR TERMINATED. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION
OF THE COMPANY (AS DEFINED BELOW),
AT $0.01 PER RIGHT, AND
EXCHANGE, IN EACH CASE PURSUANT TO THE
TERMS SET FORTH IN THE PLAN (AS DEFINED
BELOW). UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED
BY AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE
OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED
IN THE PLAN) AND ANY SUBSEQUENT
HOLDER OF SUCH RIGHTS MAY BECOME NULL AND
VOID. [THE RIGHTS REPRESENTED BY THIS
RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED
BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON
OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON. ACCORDINGLY, THIS
RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL
AND VOID IN THE CIRCUMSTANCES SPECIFIED
IN SECTION 7(e) OF THE PLAN.]1

 

 

RIGHTS CERTIFICATE

AVIAT NETWORKS, INC.

 

This certifies that,
or registered assigns, is the registered
owner of the number of Rights set forth
above, each of which entitles
the owner thereof, subject to the terms,
provisions and conditions
of the Tax Benefit Preservation Plan, dated
as of MARCH 3, 2020 (the “Plan”),
between Aviat Networks, Inc., a Delaware corporation (the “Company”),
and Computershare Inc., a Delaware corporation
(the “Rights Agent,” which term shall include
any successor Rights Agent pursuant
to the Plan), to purchase from the Company
at any time after the Distribution
Date (as such term is defined in the
Plan) and prior to the Expiration
Date (as such term is defined in the
Plan) at the office of the Rights
Agent designated for such purpose,
or at the office of
its successor as Rights Agent,
one one-thousandth of a fully paid
and nonassessable share of Series
A Participating Preferred Stock, par value
$0.01 per share (the “Preferred Shares”), of
the Company, at an exercise price of $35.00 per
one one-thousandth of a Preferred
Share (the “Exercise Price”), upon
presentation and surrender of this
Rights Certificate with the Form of
Election to Purchase and related
Certificate duly executed. The number
of Rights evidenced by this Rights
Certificate (and the number of one
one-thousandths of a Preferred Share that
may be purchased upon exercise hereof) set forth above, and the Exercise Price per
share set forth above, are the number and Exercise Price as of MARCH 3, 2020, based on the Preferred Shares as constituted at
such date. As provided in the Plan, the Exercise Price and the number and kind of Preferred Shares or other securities that may
be purchased upon the exercise of the Rights evidenced by this Rights Certificate are subject to modification and adjustment upon
the occurrence of certain events. The Company reserves the right to require prior to the occurrence of a Triggering Event (as
such term is defined in the Plan) that a number of Rights be exercised so that only whole Preferred Shares will be issued. Capitalized
terms used in this Rights Certificate without definition shall have the meanings ascribed to them in the Plan.

 

 

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

 

    	B-1

     

    

Upon the occurrence of a
Section 11(a)(ii) Event, if the Rights evidenced by this Rights Certificate are beneficially owned by an Acquiring Person, an Affiliate
or Associate of an Acquiring Person, a Post-Event Transferee, a Pre-Event Transferee, a Subsequent Transferee or any nominee of
any of the foregoing, such Rights shall become null and void and no holder hereof shall have any right with respect to such Rights
from and after the occurrence of such Section 11(a)(ii) Event.

 

This Rights Certificate is
subject to all of the terms, provisions and conditions of the Plan, which terms, provisions and conditions are hereby incorporated
herein by reference and made a part hereof and to which Plan reference is hereby made for a full description of the rights, limitations
of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Rights Certificates,
which limitations of rights include the temporary suspension of the exercisability of such Rights under the specific circumstances
set forth in the Plan. Copies of the Plan are on file at the principal executive offices of the Company and the above-mentioned
office of the Rights Agent and are available without cost upon written request.

 

Subject to the provisions
of the Plan, the Rights evidenced by this Rights Certificate may be redeemed by the Company, at its option, at a redemption price
of $0.01 per Right at any time prior to the earlier of (i) the Distribution Date or (ii) the Close of Business on the Final Expiration
Date. In addition, under certain circumstances after any Person becomes an Acquiring Person, the Rights may be exchanged, in whole
or in part, for Common Shares, or cash other securities of the Company having essentially the same value or economic rights as
such shares. Immediately upon the action of the Board authorizing any such exchange, and without any further action or any notice,
the Rights (other than Rights that are not subject to such exchange) will terminate and the Rights will only enable holders to
receive the Common Shares (or cash or other securities or assets of the Company) issuable upon such exchange.

 

This Rights Certificate,
with or without other Rights Certificates, upon surrender at the office 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 number of one one-thousandths of a Preferred Share as the Rights evidenced by the Rights Certificate or Rights
Certificates surrendered shall have entitled such holder to purchase. If this Rights Certificate is exercised in part, then the
holder will be entitled to receive upon surrender hereof another Rights Certificate or Rights Certificates for the number of whole
Rights not exercised.

 

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

 

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 number of one
one-thousandths of a Preferred Share or any other securities of the Company that may at any time be issuable on the exercise or
exchange hereof, nor shall anything contained in herein or in the Plan 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 specifically provided in the Plan), or to receive dividends or subscription
rights, or otherwise, until the Right or Rights evidenced by this Rights Certificate shall have been exercised or exchange in accordance
with the Plan.

 

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

 

    	B-2

     

    

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

 

	Dated as of  , 20[•].	 	 
	 	 	 
	ATTEST:	 	AVIAT NETWORKS, INC.
	 	 	 
	By:	
   

	 	By:	
   

	 	Name:	 	 	 	Name:	 
	 	Title:	 	 	 	Title:	 

 

 

	Countersigned:	 	 
	 	 	 
	
        COMPUTERSHARE, INC.

        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 and address of transferee)
	
   

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

 

 

	Dated: _______________.	 
	 	 
	 	
   

	 	Signature

 

 

 

Signature Medallion Guaranteed:

Signatures must be
guaranteed by an “Eligible Guarantor Institution” (with membership in an approved signature guarantee medallion program
at a level acceptable to the Rights Agent) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended. All guarantees
must be by a financial institution (such as a bank or broker) that is a participant in the Securities Transfer Agents Medallion
Program (STAMP), the NASDAQ Medallion Signature Program (MSP) or the Stock Exchanges Medallion Program (SEMP) and must not be dated.
Guarantees by a notary public are not acceptable.

 

    	B-4

     

    

CERTIFICATE

 

 

that:

The undersigned hereby certifies, for the benefit
of the Company and all holders of Rights and Common Shares, by checking the appropriate boxes

 

		(1)	the Right(s) evidenced
by this Rights Certificate are not
Beneficially Owned and

		 ̈	are

		 ̈	are not

being sold, assigned and transferred
by or on behalf of a Person who is or was an Acquiring Person, an Affiliate or Associate of an Acquiring Person, a Post-Event Transferee,
a Pre-Event Transferee, a Subsequent Transferee or any nominee of any of the foregoing; and

		(2)	after due inquiry and
to the best knowledge of the undersigned,
it

		 ̈	did

		 ̈	did not

acquire the Rights evidenced by this Rights
Certificate from any Person who is, was or subsequently became an Acquiring Person, an Affiliate or Associate of an Acquiring Person,
a Post-Event Transferee, a Pre-Event Transferee, a Subsequent Transferee or any nominee of any of the foregoing.

 

	Dated: _______________.	 
	 	 
	 	
   

	 	Signature

 

 

Signature Medallion Guaranteed:

Signatures must be
guaranteed by an “Eligible Guarantor Institution” (with membership in an approved signature guarantee medallion program
at a level acceptable to the Rights Agent) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended. All guarantees
must be by a financial institution (such as a bank or broker) that is a participant in the Securities Transfer Agents Medallion
Program (STAMP), the NASDAQ Medallion Signature Program (MSP) or the Stock Exchanges Medallion Program (SEMP) and must not be dated.
Guarantees by a notary public are not acceptable.

    	B-5

     

    

[Form of Reverse Side of Rights Certificate
 – continued]

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires
to

exercise Rights represented
by the Rights Certificate.)

 

To: Aviat Networks, Inc.

 

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

 

Please insert social security

or other identifying number

	
    
 

	(Please print name and address)
	
   

	 

  

If such number of Rights shall not be all of 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 insert social security

or other identifying number

	
   
 

	(Please print name and address)
	
     

	 

 

 

	Dated: _______________.	 
	 	 
	 	
   

	 	Signature

 

Signature Medallion Guaranteed:

Signatures must be
guaranteed by an “Eligible Guarantor Institution” (with membership in an approved signature guarantee medallion program
at a level acceptable to the Rights Agent) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended. All guarantees
must be by a financial institution (such as a bank or broker) that is a participant in the Securities Transfer Agents Medallion
Program (STAMP), the NASDAQ Medallion Signature Program (MSP) or the Stock Exchanges Medallion Program (SEMP) and must not be dated.
Guarantees by a notary public are not acceptable.

 

    	B-6

     

    

CERTIFICATE

 

 

that:

The undersigned hereby certifies, for the benefit
of the Company and all holders of Rights and Common Shares, by checking the appropriate boxes

 

		(1)	the Right(s) evidenced
by this Rights Certificate are not
Beneficially Owned and

		 ̈	are

		 ̈	are not

being sold, assigned and transferred
by or on behalf of a Person who is or was an Acquiring Person, an Affiliate or Associate of an Acquiring Person, a Post-Event Transferee,
a Pre-Event Transferee, a Subsequent Transferee or any nominee of any of the foregoing; and

		(2)	after due inquiry and
to the best knowledge of the undersigned,
it

		 ̈	did

		 ̈	did not

acquire the Rights evidenced by this Rights
Certificate from any Person who is, was or subsequently became an Acquiring Person, an Affiliate or Associate of an Acquiring Person,
a Post-Event Transferee, a Pre-Event Transferee, a Subsequent Transferee or any nominee of any of the foregoing.

 

	Dated: _______________.	 
	 	 
	 	
   

	 	Signature

 

Signature Medallion Guaranteed:

Signatures must be
guaranteed by an “Eligible Guarantor Institution” (with membership in an approved signature guarantee medallion program
at a level acceptable to the Rights Agent) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended. All guarantees
must be by a financial institution (such as a bank or broker) that is a participant in the Securities Transfer Agents Medallion
Program (STAMP), the NASDAQ Medallion Signature Program (MSP) or the Stock Exchanges Medallion Program (SEMP) and must not be dated.
Guarantees by a notary public are not acceptable.

    	B-7

     

    

[Form of Reverse Side of Rights Certificate
 – continued]

 

NOTICE

 

The signature in the
foregoing Forms of Assignment and 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 THAT THE CERTIFICATIONS SET FORTH IN THE FOREGOING FORMS OF ASSIGNMENT
AND ELECTION TO PURCHASE, AS THE
CASE MAY BE,
ARE NOT COMPLETED, THEN THE COMPANY
AND THE RIGHTS AGENT WILL DEEM THE BENEFICIAL OWNER OF THE RIGHTS EVIDENCED
BY THIS RIGHT CERTIFICATE TO BE AN ACQUIRING
PERSON, AN AFFILIATE OR ASSOCIATE OF
AN ACQUIRING PERSON, A POST-EVENT TRANSFEREE,
A PRE-EVENT TRANSFEREE, A SUBSEQUENT TRANSFEREE OR ANY NOMINEE OF ANY
OF THE FOREGOING, AS THE CASE MAY
BE, AND SUCH ASSIGNMENT
OR ELECTION TO PURCHASE WILL NOT BE HONORED
AND THE RIGHTS EVIDENCED BY THIS RIGHTS CERTIFICATE WILL BE DEEMED TO BE NULL AND
VOID.

 

    	B-8

     

    

EXHIBIT C

 

FORM OF

SUMMARY OF RIGHTS

 

SUMMARY OF

TAX BENEFIT PRESERVATION PLAN

OF

AVIAT NETWORKS, INC.

 

On March 3, 2020, the Board
of Directors (the “Board”) of Aviat Networks, Inc. (the “Company”) authorized and declared
a dividend distribution of one right (a “Right”) for each outstanding share of common stock, par value $0.01
per share (the “Common Shares”), of the Company to stockholders of record as of the close of business on March
13, 2020 (the “Record Date”). Each Right entitles the registered holder to purchase from the Company one one-thousandth
of a share of Series A Participating Preferred Stock, par value $0.01 per share (the “Preferred Shares”), of
the Company at an exercise price of $35.00 (the “Exercise Price”) per one one-thousandth of a Preferred Share,
subject to adjustment. The complete terms of the Rights are set forth in a Tax Benefit Preservation Plan (the “Plan”),
dated as of March 3, 2020, between the Company and Computershare Inc., as rights agent.

 

By adopting the Plan, the
Board is seeking to protect the Company’s ability to use its net operating losses, any loss or deducting attributable to
a “net unrealized built-in loss” and other tax attributes (collectively, “Tax Benefits”). The Company
views its Tax Benefits as highly valuable assets of the Company that are likely to inure to the benefit of the Company and its
stockholders. However, if the Company experiences an “ownership change,” as defined in Section 382 of the Internal
Revenue Code (the “Code”), its ability to use the Tax Benefits could be substantially limited, and the timing
of the usage of the Tax Benefits could be substantially delayed, which could significantly impair the value of the Tax Benefits.
Generally, an “ownership change” occurs if the percentage of the Company’s stock owned by one or more “five
percent stockholders” increases by more than 50 percentage points over the lowest percentage of stock owned by such stockholders
at any time during the prior three-year period or, if sooner, since the last “ownership change” experienced by the
Company. The Plan is intended to act as a deterrent to any person acquiring 4.9% or more of the outstanding Common Shares without
the approval of the Board. This would protect the Tax Benefits because changes in ownership by a person owning less than 4.9% of
the Common Shares are not included in the calculation of “ownership change” for purposes of Section 382 of the Code.
The Board believes that it is in the best interest of the Company and its stockholders that the Company provide for the protection
of the Tax Benefits by adopting the Plan.

 

For those interested in the
specific terms of the Plan, the following is a summary description. Please note, however, that this description is only a summary
and is not complete, and should be read together with the entire Plan, which will be filed by the Company with the Securities and
Exchange Commission as an exhibit to a Registration Statement on Form 8-A and a Current Report on Form 8-K. A copy of the Plan
is available free of charge from the Company.

    	C-1

     

    

Distribution and Transfer of Rights; Rights Certificates

 

The Board has declared a dividend of one
Right for each outstanding Common Share. Prior to the Distribution Date referred to below:

 

		•	the Rights will be evidenced by and trade with the certificates for the Common Shares (or, with
respect to any uncertificated Common Shares registered in book entry form, by notation in book entry), and no separate rights certificates
will be distributed;

		•	new Common Shares certificates issued after the Record Date will contain a legend incorporating
the Plan by reference (for uncertificated Common Shares registered in book entry form, this legend will be contained in a notation
in book entry); and

		•	the surrender for transfer of any certificates for Common Shares (or the surrender for transfer
of any uncertificated Common Shares registered in book entry form) will also constitute the transfer of the Rights associated with
such Common Shares.

 

Rights will accompany any new Common Shares
that are issued after the Record Date.

 

Distribution Date

 

Subject to certain exceptions specified
in the Plan, the Rights will separate from the Common Shares and become exercisable following (1) the 10th business day (or such
later date as may be determined by the Board) after the public announcement that a person or group of affiliated or associated
persons (an “Acquiring Person”) has acquired beneficial ownership of 4.9% or more of the Common Shares or (2) the 10th
business day (or such later date as may be determined by the Board) after a person or group announces a tender or exchange offer
that would result in ownership by a person or group of 4.9% or more of the Common Shares. For purposes of the Plan, beneficial
ownership is defined to include the ownership of derivative securities.

 

Any person or group of affiliated or associated
persons who beneficially owns 4.9% or more of the outstanding Common Shares as of the announcement of the Plan will not be an Acquiring
Person, but only for so long as such person or group does not become the beneficial owner of any additional Common Shares.

 

The date on which the Rights separate
from the Common Shares and become exercisable is referred to as the “Distribution Date.”

 

After the Distribution Date, the Company
will mail Rights certificates to the Company’s stockholders as of the close of business on the Distribution Date and the
Rights will become transferable apart from the Common Shares. Thereafter, such Rights certificates alone will represent the Rights.

 

    	C-2

     

    

Preferred Shares Purchasable Upon Exercise of Rights

 

After the Distribution Date, each Right
will entitle the holder to purchase, for the Exercise Price, one one-thousandth of a Preferred Share having economic and other
terms similar to that of one Common Share. This portion of a Preferred Share is intended to give the stockholder approximately
the same dividend, voting and liquidation rights as would one Common Share, and should approximate the value of one Common Share.

 

More specifically, each one one-thousandth
of a Preferred Share, if issued, will:

 

		•	not be redeemable;

		•	entitle holders to quarterly dividend payments of $0.01 per share, or an amount equal to the dividend
paid on one Common Share, whichever is greater;

		•	entitle holders upon liquidation either to receive $1.00 per share or an amount equal to the payment
made on one Common Share, whichever is greater;

		•	have the same voting power as one Common Share; and

		•	entitle holders to a per share payment equal to the payment made on one Common Share if the Common
Shares are exchanged via merger, consolidation or a similar transaction.

 

Flip-In Trigger

 

If an Acquiring Person obtains beneficial
ownership of 4.9% or more of the Common Shares, except pursuant to an offer for all outstanding Common Shares that the independent
members of the Board determine to be fair and not inadequate and to otherwise be in the best interests of the Company and its stockholders
after receiving advice from one or more investment banking firms, then each Right will entitle the holder thereof to purchase,
for the Exercise Price, a number of Common Shares (or, in certain circumstances, cash, property or other securities of the Company)
having a then-current market value of twice the Exercise Price. However, the Rights are not exercisable following the occurrence
of the foregoing event until such time as the Rights are no longer redeemable by the Company, as further described below.

 

Following the occurrence of an event set
forth in preceding paragraph, all Rights that are or, under certain circumstances specified in the Plan, were beneficially owned
by an Acquiring Person or certain of its transferees will be null and void.

 

Flip-Over Trigger

 

If, after an Acquiring Person obtains
4.9% or more of the Common Shares, (1) the Company merges into another entity, (2) an acquiring entity merges into the Company
or (3) the Company sells or transfers more than 50% of its assets, cash flow or earning power, then each Right (except for Rights
that have previously been voided as set forth above) will entitle the holder thereof to purchase, for the Exercise Price, a number
of shares of common stock of the person engaging in the transaction having a then-current market value of twice the Exercise Price.

 

    	C-3

     

    

Redemption of the Rights

 

The Rights will be redeemable at the Company’s
option for $0.01 per Right (payable in cash, Common Shares or other consideration deemed appropriate by the Board) at any time
on or prior to the 10th business day (or such later date as may be determined by the Board) after the public announcement that
an Acquiring Person has acquired beneficial ownership of 4.9% or more of the Common Shares. Immediately upon the action of the
Board ordering redemption, the Rights will terminate and the only right of the holders of the Rights will be to receive the $0.01
redemption price. The redemption price will be adjusted if the Company undertakes a stock dividend or a stock split.

 

Exchange Provision

 

At any time after the date on which an
Acquiring Person beneficially owns 4.9% or more of the Common Shares and prior to the acquisition by the Acquiring Person of 50%
of the Common Shares, the Board may exchange the Rights (except for Rights that have previously been voided as set forth above),
in whole or in part, for Common Shares at an exchange ratio of one Common Share per Right (subject to adjustment). In certain circumstances,
the Company may elect to exchange the Rights for cash or other securities of the Company having a value approximately equal to
one Common Share.

 

Expiration of the Rights

 

The Rights expire on the earliest of (1)
5:00 p.m., New York City time, on March 3, 2023 (unless such date is extended); (2) the redemption or exchange of the Rights as
described above; (3) following (a) the first annual meeting of the stockholders of the Company after the adoption of the Plan if
stockholders do not approve the Plan or (b) the first anniversary of the adoption of the Plan if the stockholders have not otherwise
approved the Plan; (4) the repeal of Section 382 of the Code or any other change if the Board determines that the Plan is no longer
necessary or desirable for the preservation of the Tax Benefits; (5) the time at which the Board determines that the Tax Benefits
are fully utilized or no longer available pursuant to Section 382 of the Code or that an ownership change pursuant to Section 382
of the Code would not adversely impact in any material respect the time period in which the Company could use the Tax Benefits,
or materially impair the amount of the Tax Benefits that could be used by the Company in any particular time period, for applicable
tax purposes; or (6) a determination by the Board that the Plan is no longer in the best interests of the Company and its stockholders.

 

Amendment of Terms of the Plan and the Rights

 

The terms of the Rights and the Plan may
be amended in any respect without the consent of the holders of the Rights on or prior to the Distribution Date. Thereafter, the
terms of the Rights and the Plan may be amended without the consent of the holders of Rights in order to (1) cure any ambiguities,
(2) shorten or lengthen any time period pursuant to the Plan or (3) make changes that do not adversely affect the interests of
holders of the Rights.

 

    	C-4

     

    

Voting Rights; Other Stockholder Rights

 

The Rights will not have any voting rights.
Until a Right is exercised, the holder thereof, as such, will have no separate rights as stockholder of the Company.

 

Anti-Dilution Provisions

 

The Board may adjust the Exercise Price,
the number of Preferred Shares issuable and the number of outstanding Rights to prevent dilution that may occur from a stock dividend,
a stock split or a reclassification of the Preferred Shares or Common Shares.

 

With certain exceptions, no adjustments
to the Exercise Price will be made until the cumulative adjustments amount to at least 1% of the Exercise Price. No fractional
Preferred Shares will be issued and, in lieu thereof, an adjustment in cash will be made based on the current market price of the
Preferred Shares.

 

Taxes

 

The distribution of Rights should not
be taxable for federal income tax purposes. However, following an event that renders the Rights exercisable or upon redemption
of the Rights, stockholders may recognize taxable income.

    	C-5EX-4.2

 Exhibit 4.2 

DESCRIPTION OF THE REGISTRANT’S SECURITIES 

REGISTERED PURSUANT TO SECTION 12 OF THE 

SECURITIES EXCHANGE ACT OF 1934 
 The
following summary of the common stock of FreightCar America, Inc., which is the only class of capital stock of FreightCar that is registered pursuant to Section 12 of the Securities Exchange Act of 1934, does not purport to be complete and is
qualified in its entirety by reference to our certificate of ownership and merger (as amended, our “charter”) and our third amended and restated bylaws (our “bylaws”, and together with our charter, our “organizational
documents”), each of which is incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit is a part, and certain provisions of Delaware law. Unless the context requires
otherwise, all references to “we”, “us,” “our” and “FreightCar” in this section refer solely to FreightCar America, Inc. and not to our subsidiaries. 

Under our charter, our authorized capital stock consists of 50,000,000 shares of common stock, $0.01 par value per share, and 2,500,000 shares of preferred
stock, $0.01 par value per share. As of February 12, 2020, there were 13,270,992 shares of FreightCar common stock outstanding. All outstanding shares of FreightCar common stock are duly authorized, validly issued, fully paid and non-assessable. We have no shares of preferred stock issued or outstanding. 
 Our common stock is listed on the Nasdaq
Global Market under the symbol “RAIL.” 
 Voting Rights. The holders of our common stock vote together with any holders of voting preferred
stock as a class on all matters submitted to a vote of stockholders, with each share having one vote, except for those matters exclusively affecting the preferred stock. Holders of our common stock have voting rights in the election of directors.

 Dividend Rights. Holders of our common stock are entitled to receive dividends as may be lawfully declared from time to time by our board of
directors. 
 Liquidation Rights. In the event of liquidation, dissolution or winding-up, the holders of our
common stock are entitled to share equally in our assets, if any remain after the payment of all our debts and liabilities and the liquidation preference of any outstanding preferred shares. 

Other. Holders of common stock have no preemptive rights or other rights to subscribe for additional common stock and no rights of redemption,
conversion or exchange. 
 Provisions of the Charter and Bylaws that May Have an Anti-Takeover Effect 

Certain provisions in the charter and the bylaws, as well as Delaware General Corporation Law (the “DGCL”), may have the effect of discouraging
transactions that involve an actual or threatened change in control of FreightCar. In addition, provisions of the charter, the bylaws and the DGCL may be deemed to have an anti-takeover effect and may delay, deter or prevent a tender offer or
takeover attempt that a stockholder might consider to be in its best interests. 
 Classified Board. Our charter provides that our board of directors
is divided into three classes of directors, with the classes as nearly equal in number as possible. As a result, approximately one-third of our board of directors is elected each year. The classification of
directors has the effect of making it more difficult for stockholders to change the composition of our board. Our charter provides that the number of directors will be fixed in the manner provided in the bylaws. Our organizational documents provide
that the number of directors will be fixed from time to time solely pursuant to a resolution adopted by the board, but must consist of not less than five nor more than 15 directors. 

  
 1 

 No Cumulative Voting. Delaware law provides that stockholders are not entitled to the right to
cumulative voting in the election of directors unless our charter provides otherwise. Our charter does not expressly provide for cumulative voting. 

Special Meetings of Stockholders. The board of directors or the chairman of the board of directors may call a special meeting of stockholders at any
time and for any purpose, but no stockholder or other person may call any such special meeting. 
 No Written Consent of Stockholders. Any action
taken by our stockholders must be effected at a duly held meeting of stockholders and may not be effected by the written consent of such stockholders. 

Advance Notice of Stockholder Action at a Meeting. Stockholders seeking to nominate directors or to bring business before a stockholder meeting must
comply with certain timing requirements and submit certain information to us in advance of such meeting. 
 Authorized but Unissued Capital Stock.
Delaware law does not require stockholder approval for any issuance of authorized shares. However, the listing requirements of the Nasdaq Global Market, which would apply so long as our common stock is listed on the Nasdaq Global Market, require
stockholder approval of certain issuances equal to or in excess of 20% of the voting power or the number of shares of common stock. These additional shares may be used for a variety of corporate purposes, including future public offerings, to raise
additional capital or to facilitate acquisitions. 
 One of the effects of the existence of unissued and unreserved common stock or preferred stock may be
to enable our board of directors to issue shares to persons friendly to current management, which issuance could render more difficult or discourage an attempt to obtain control of our company by means of a merger, tender offer, proxy contest or
otherwise, and thereby protect the continuity of our management and possibly deprive the stockholders of opportunities to sell their shares of common stock at prices higher than prevailing market prices. 

Business Combinations. We are subject to the provisions of Section 203 of the DGCL. Subject to certain exceptions, Section 203 prohibits a
publicly held Delaware corporation from engaging in a business combination with an interested stockholder for a period of three years after the person becomes an interested stockholder, unless the interested stockholder attained such status with the
approval of FreightCar’s board of directors or the business combination is approved in a prescribed manner. A business combination includes, among other things, a merger or consolidation involving FreightCar and the interested stockholder and
the sale of more than 10% of FreightCar’s assets. In general, an interested stockholder is an entity or person beneficially owning 15% or more of FreightCar’s outstanding voting stock and any entity or person affiliated with or controlling
or controlled by such entity or person. 
 Elimination of Liability in Certain Circumstances 

Our charter eliminates the liability of our directors to us or our stockholders for monetary damages resulting from breaches of their fiduciary duties as
directors. Directors remain liable for breaches of their duty of loyalty to us or our stockholders, as well as for acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law, and transactions from which
a director derives improper personal benefit. Our charter does not absolve directors of liability for payment of dividends or stock purchases or redemptions by us in violation of Section 174 (or any successor provision) of the DGCL. 

The effect of this provision is to eliminate the personal liability of directors for monetary damages for actions involving a breach of their fiduciary duty
of care, including any such actions involving gross negligence. We do not believe that this provision eliminates the liability of our directors to us or our stockholders for monetary damages under the federal securities laws. The charter and bylaws
also provide indemnification for the benefit of our directors and officers to the fullest extent permitted by the DGCL as it may be amended from time to time, including most circumstances under which indemnification otherwise would be discretionary.

 Transfer Agent and Registrar 
 The transfer agent and
registrar for our common stock is Computershare Trust Company, N.A. 

  
 2

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