Document:

Unassociated Document

     

    THE
      REGISTERED HOLDER OF THIS PURCHASE OPTION BY ITS ACCEPTANCE HEREOF, AGREES
      THAT
      IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE OPTION EXCEPT AS HEREIN
      PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE OPTION AGREES THAT IT WILL
      NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE OPTION FOR
      A
      PERIOD OF ONE YEAR FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER
      THAN (I) FERRIS, BAKER WATTS, INCORPORATED (“FERRIS”) OR AN UNDERWRITER OR A
      SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER
      OR
      PARTNER OF FERRIS OR OF ANY SUCH UNDERWRITER OR SELECTED
      DEALER.

     

    THIS
      PURCHASE OPTION IS NOT EXERCISABLE PRIOR TO THE LATER OF THE CONSUMMATION BY
      CROSSFIRE CAPITAL CORPORATION OF A MERGER, CAPITAL STOCK EXCHANGE, ASSET
      ACQUISITION OR OTHER SIMILAR BUSINESS COMBINATION (“BUSINESS COMBINATION”) (AS
      DESCRIBED MORE FULLY IN THE COMPANY’S REGISTRATION STATEMENT (DEFINED HEREIN) OR
      _____________, 2007. VOID AFTER 5:00 P.M. EASTERN TIME, _____________,
      2011.

     

    UNIT
      PURCHASE OPTION

     

    For
      the Purchase of 

     

    500,000
      Units

     

    of

     

    CROSSFIRE
      CAPITAL CORPORATION

     

     

    1.  Purchase
      Option.
      

     

    THIS
      CERTIFIES THAT, in consideration of $100 duly paid by or on behalf of
      ____________________ (“Holder”), as registered owner of this Purchase Option, to
      Crossfire Capital Corporation (“Company”), Holder is entitled, at any time or
      from time to time upon the later of the consummation of a Business Combination
      or _________, 2007 (“Commencement Date”), and at or before 5:00 p.m., Eastern
      Time, ____________, 2011 (“Expiration Date”), but not thereafter, to subscribe
      for, purchase and receive, in whole or in part, up to Five Hundred Thousand
      (500,000) units (“Units”) of the Company, each Unit consisting of one share of
      common stock of the Company, par value $.0001 per share (“Common Stock”), and
      two warrants (“Warrant(s)”) expiring five years from the effective date
      (“Effective Date”) of the Company’s registration statement on Form S-1
      (“Registration Statement”) pursuant to which Units are offered for sale to the
      public (“Offering”). Each Warrant is the same as the warrant included in the
      Units being registered for sale to the public by way of the Registration
      Statement (“Public Warrants”) except that the Warrants included in the Purchase
      Option have an exercise price of $6.25 per share (125% of the exercise price
      of
      the Public Warrants), subject to adjustment as provided in Section 6 hereof.
      If
      the Expiration Date is a day on which banking institutions are authorized by
      law
      to close, then this Purchase Option may be exercised on the next succeeding
      day
      which is not such a day in accordance with the terms herein. During the period
      ending on the Expiration Date, the Company agrees not to take any action that
      would terminate the Purchase Option. This Purchase Option is initially
      exercisable at $7.50 per Unit (125% of the price of the Units sold in the
      Offering) so purchased; provided, however, that upon the occurrence of any
      of
      the events specified in Section 6 hereof, the rights granted by this Purchase
      Option, including the exercise price per Unit and the number of Units (and
      shares of Common Stock and Warrants) to be received upon such exercise, shall
      be
      adjusted as therein specified. The term “Exercise Price” shall mean the initial
      exercise price or the adjusted exercise price, depending on the
      context.

     

    
      
         

      

      
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    2.  Exercise.

     

    2.1  Exercise
      Form.
      In
      order to exercise this Purchase Option, the exercise form attached hereto must
      be duly executed and completed and delivered to the Company, together with
      this
      Purchase Option and payment of the Exercise Price for the Units being purchased
      payable in cash or by certified check or official bank check. If the
      subscription rights represented hereby shall not be exercised at or before
      5:00
      p.m., Eastern time, on the Expiration Date this Purchase Option shall become
      and
      be void without further force or effect, and all rights represented hereby
      shall
      cease and expire.

     

    2.2  Legend.
      Each
      certificate for the securities purchased under this Purchase Option shall bear
      a
      legend as follows unless such securities have been registered under the
      Securities Act of 1933, as amended (“Act”):

     

    “The
      securities represented by this certificate have not been registered under the
      Securities Act of 1933, as amended (“Act”) or applicable state law. The
      securities may not be offered for sale, sold or otherwise transferred except
      pursuant to an effective registration statement under the Act, or pursuant
      to an
      exemption from registration under the Act and applicable state
      law.”

     

    2.3  Cashless
      Exercise.

     

    2.3.1  Determination
      of Amount.
      In lieu
      of the payment of the Exercise Price multiplied by the number of Units for
      which
      this Purchase Option is exercisable (and in lieu of being entitled to receive
      Common Stock and Warrants) in the manner required by Section 2.1, the Holder
      shall have the right (but not the obligation) to convert any exercisable but
      unexercised portion of this Purchase Option into Units (“Conversion Right”) as
      follows: upon exercise of the Conversion Right, the Company shall deliver to
      the
      Holder (without payment by the Holder of any of the Exercise Price in cash)
      that
      number of Units equal to the quotient obtained by dividing (x) the “Value” (as
      defined below) of the portion of the Purchase Option being converted by (y)
      the
      Current Market Price (as defined below) of a Unit. The “Value” of the portion of
      the Purchase Option being converted shall equal the remainder derived from
      subtracting (a) (i) the Exercise Price multiplied by (ii) the number of Units
      underlying the portion of this Purchase Option being converted from (b) the
      Current Market Price of a Unit multiplied by the number of Units underlying
      the
      portion of the Purchase Option being converted. The “Current Market Price” of a
      Unit shall mean (i) if the Unit is listed on a national securities exchange
      or
      quoted on the Nasdaq National Market, Nasdaq SmallCap Market or NASD OTC
      Bulletin Board (or successor such as the Bulletin Board Exchange), the average
      closing price of a Unit for thirty (30) trading days immediately preceding
      the
      date of determination of the Current Market Price in the principal trading
      market for the Unit as reported by the exchange, Nasdaq or the NASD, as the
      case
      may be; (ii) if the Unit is not listed on a national securities exchange or
      quoted on the Nasdaq National Market, Nasdaq SmallCap Market or the NASD OTC
      Bulletin Board (or successor such as the Bulletin Board Exchange), but is traded
      in the residual over-the-counter market, the closing bid price for the Unit
      on
      the last trading day preceding the date in question for which such quotations
      are reported by the Pink Sheets, LLC or similar publisher of such quotations;
      and (iii) if the fair market value of the Unit cannot be determined pursuant
      to
      clause (i) or (ii) above, such price as the Board of Directors of the Company
      (the “Board”) shall determine, in good faith.

     

    
      
         

      

      
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    2.3.2  Mechanics
      of Cashless Exercise.
      The
      Cashless Exercise Right may be exercised by the Holder on any business day
      on or
      after the Commencement Date and not later than the Expiration Date by delivering
      the Purchase Option with a duly executed exercise form attached hereto with
      the
      cashless exercise section completed to the Company, exercising the Cashless
      Exercise Right and specifying the total number of Units the Holder will purchase
      pursuant to such Cashless Exercise Right.

     

    3.  Transfer.
      

     

    3.1  General
      Restrictions.
      The
      registered Holder of this Purchase Option agrees that it will not sell,
      transfer, assign, pledge or hypothecate this Purchase Option for a period of
      one
      year following the Effective Date to anyone other than (i) Ferris or an
      underwriter or a selected dealer participating in the Offering, or (ii) a bona
      fide officer or partner of Ferris or of any such underwriter or selected dealer.
      On and after the first anniversary of the Effective Date, transfers to others
      may be made subject to compliance with or exemptions from applicable securities
      laws. In order to make any permitted assignment, the Holder must deliver to
      the
      Company the assignment form attached hereto duly executed and completed,
      together with the Purchase Option and payment of all transfer taxes, if any,
      payable in connection therewith. The Company shall within five business days
      transfer this Purchase Option on the books of the Company and shall execute
      and
      deliver a new Purchase Option or Purchase Options of like tenor to the
      appropriate assignee(s) expressly evidencing the right to purchase the aggregate
      number of Units purchasable hereunder or such portion of such number as shall
      be
      contemplated by any such assignment.

     

    3.2  Restrictions
      Imposed by the Act.
      The
      securities evidenced by this Purchase Option shall not be transferred unless
      and
      until (i) the Company has received the opinion of counsel for the Holder that
      the securities may be transferred pursuant to an exemption from registration
      under the Act and applicable state securities laws, the availability of which
      is
      established to the reasonable satisfaction of the Company (the Company hereby
      agreeing that the opinion of Gersten Savage LLP shall be deemed satisfactory
      evidence of the availability of an exemption), or (ii) a or a post-effective
      amendment to the Registration Statement relating to the offer and sale of such
      securities has been filed by the Company and declared effective by the
      Securities and Exchange Commission and compliance with applicable state
      securities law has been established.

     

    
      
         

      

      
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    4.  New
      Purchase Options to be Issued.

     

    4.1  Partial
      Exercise or Transfer.
      Subject
      to the restrictions in Section 3 hereof, this Purchase Option may be exercised
      or assigned in whole or in part. In the event of the exercise or assignment
      hereof in part only, upon surrender of this Purchase Option for cancellation,
      together with the duly executed exercise or assignment form and funds sufficient
      to pay any Exercise Price and/or transfer tax if exercised pursuant to Section
      2.1 hereto, the Company shall cause to be delivered to the Holder without charge
      a new Purchase Option of like tenor to this Purchase Option in the name of
      the
      Holder evidencing the right of the Holder to purchase the number of Units
      purchasable hereunder as to which this Purchase Option has not been exercised
      or
      assigned.

     

    4.2  Lost
      Certificate.
      Upon
      receipt by the Company of evidence satisfactory to it of the loss, theft,
      destruction or mutilation of this Purchase Option and of reasonably satisfactory
      indemnification or the posting of a bond, the Company shall execute and deliver
      a new Purchase Option of like tenor and date. Any such new Purchase Option
      executed and delivered as a result of such loss, theft, mutilation or
      destruction shall constitute a substitute contractual obligation on the part
      of
      the Company.

     

    5.  Registration
      Rights.
      

     

    5.1  Demand
      Registration.
      

     

    5.1.1  Grant
      of Right.
      The
      Company, upon written demand (“Demand Notice”) of the Holder(s) of at least 51%
      of the Purchase Options and/or the underlying Units and/or the underlying
      securities (“Majority Holders”), agrees to register on one occasion, all or any
      portion of the Common Stock, the Warrants and the Common Stock underlying the
      Warrants underlying such Purchase Options (collectively, the “Registrable
      Securities”) as requested by the Majority Holders in the Demand Notice, provided
      that no such registration will be required unless the Holders request
      registration of an aggregate of at least 51% of the outstanding Registrable
      Securities. On such occasion, the Company will file a new registration statement
      or a post-effective amendment to the Registration Statement covering the
      Registrable Securities within sixty days after receipt of the Demand Notice
      and
      use its best efforts to have such registration statement or post-effective
      amendment declared effective as soon as possible thereafter. The demand for
      registration may be made at any time during a period of four years beginning
      on
      the first anniversary of the Effective Date. The Company covenants and agrees
      to
      give written notice of its receipt of any Demand Notice by any Holder(s) to
      all
      other registered Holders of the Purchase Options and/or the Registrable
      Securities within ten days from the date of the receipt of any such Demand
      Notice, who shall have five days from the receipt of such Notice in which to
      notify the Company of their desire to have their Registrable Securities included
      in the Registration Statement. 

     

    
      
         

      

      
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    5.1.2  Terms.
      The
      Company shall bear all fees and expenses attendant to registering the
      Registrable Securities, including the reasonable expenses of any legal counsel
      selected by the Holders to represent them in connection with the sale of the
      Registrable Securities, but the Holders shall pay any and all underwriting
      commissions, if any. The Company agrees to use its commercially reasonable
      efforts to qualify or register the Registrable Securities in such States as
      are
      reasonably requested by the Majority Holder(s); provided, however, that in
      no
      event shall the Company be required to register the Registrable Securities
      in a
      State in which such registration would cause (i) the Company to be obligated
      to
      qualify to do business in such State or execute a general consent to service
      of
      process, or would subject the Company to taxation as a foreign corporation
      doing
      business in such jurisdiction or (ii) the principal stockholders of the Company
      to be obligated to escrow their shares of capital stock of the Company. The
      Company shall cause any registration statement or post-effective amendment
      filed
      pursuant to the demand rights granted under Section 5.1.1 to remain effective
      for a period of nine consecutive months from the effective date of such
      registration statement or post-effective amendment or until the Holders have
      completed the distribution of the Registrable Securities included in the
      Registration Statement, whichever occurs first.

     

    5.1.3. Deferred
      Filing.
      If (i)
      in the good faith judgment of the Board, filing a registration statement
      pursuant to Section 5.1 would be seriously detrimental to the Company and the
      Board concludes, as a result, that it is essential to defer the filing of such
      registration statement at such time, and (ii) the Company shall furnish to
      such
      Holders a certificate signed by the President of the Company stating that in
      the
      good faith judgment of the Board it would be seriously detrimental to the
      Company for such registration statement to be filed in the near future and
      that
      it is, therefore, essential to defer the filing of such registration statement,
      then the Company shall have the right to defer such filing for a period of
      not
      more than one hundred and twenty (120) days after receipt of the request of
      the
      Majority Holders, and provided further, that the Company shall not defer its
      obligation in this manner more than twice in any twelve-month period.

     

    5.1.4.
      No
      Cash Settlement Option.
      The
      Company is only required to use its best efforts to cause a registration
      statement covering issuance of the shares of Common Stock underlying the
      Purchase Option to be declared effective, and once effective, only to use its
      best efforts to maintain the effectiveness of the registration statement. The
      Company will not be obligated to deliver securities, and there are no
      contractual penalties for failure to deliver securities, if a registration
      statement is not effective at the time of exercise. Additionally, in no event
      is
      the Company obligated to settle any Purchase Option, in whole or in part, for
      cash in the event it is unable to register the shares of the Common Stock
      under this section. 

     

    5.2  “Piggy-Back”
      Registration.
      

     

    5.2.1  Grant
      of Right.
      In
      addition to the demand right of registration, the Holders of the Purchase
      Options shall have the right for a period of seven years commencing on the
      Effective Date, to include the Registrable Securities as part of any other
      registration of securities filed by the Company (other than in connection with
      a
      transaction contemplated by Rule 145(a) promulgated under the Act or pursuant
      to
      Form S-8 or any successor or equivalent form); provided, however, that if,
      in
      the written opinion of the Company’s managing underwriter or underwriters, if
      any, for such offering, the inclusion of the Registrable Securities, when added
      to the securities being registered by the Company or the selling stockholder(s),
      will exceed the maximum amount of the Company’s securities which can be marketed
      (i) at a price reasonably related to their then current market value, and (ii)
      without materially and adversely affecting the entire offering, then the Company
      will still be required to include the Registrable Securities, but may require
      the Holders to agree, in writing, to delay the sale of all or any portion of
      the
      Registrable Securities for a period of 90 days from the effective date of the
      offering, provided, further, that if the sale of any Registrable Securities
      is
      so delayed, then the number of securities to be sold by all stockholders in
      such
      public offering shall be apportioned pro rata among all such selling
      stockholders, including all holders of the Registrable Securities, according
      to
      the total amount of securities of the Company owned by said selling
      stockholders, including all holders of the Registrable Securities.

     

    
      
         

      

      
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    5.2.2  Terms.
      The
      Company shall bear all fees and expenses attendant to registering the
      Registrable Securities, including the expenses of any legal counsel selected
      by
      the Holders to represent them in connection with the sale of the Registrable
      Securities, but the Holders shall pay any and all underwriting commissions.
      In
      the event of such a proposed registration, the Company shall furnish the then
      Holders of outstanding Registrable Securities with not less than ten days
      written notice prior to the proposed date of filing of such registration
      statement. Such notice to the Holders shall continue to be given for each
      applicable registration statement filed (during the period in which the Purchase
      Option is exercisable) by the Company until such time as all of the Registrable
      Securities have been registered and sold. The holders of the Registrable
      Securities shall exercise the “piggy back” rights provided for herein by giving
      written notice, within ten days of the receipt of the Company’s notice of its
      intention to file a registration statement. The Company shall cause any
      registration statement filed pursuant to the above “piggyback” rights that does
      not relate to a firm commitment underwritten offering to remain effective for
      at
      least nine consecutive months from the effective date of such registration
      statement or until the Holders have completed the distribution of the
      Registrable Securities in the registration statement, whichever occurs
      first.

     

    5.3  Damages.
      Intentionally
      omitted.
      

     

    5.4  General
      Terms.
      

     

    5.4.1  Indemnification.
      The
      Company shall indemnify the Holder(s) of the Registrable Securities to be sold
      pursuant to any Registration Statement hereunder and each person, if any, who
      controls such Holders within the meaning of Section 15 of the Act or Section
      20(a) of the Securities Exchange Act of 1934, as amended (“Exchange Act”),
      against all loss, claim, damage, expense or liability (including all reasonable
      attorneys’ fees and other expenses reasonably incurred in investigating,
      preparing or defending against litigation, commenced or threatened, or any
      claim
      whatsoever) to which any of them may become subject under the Act, the Exchange
      Act or otherwise, arising from such Registration Statement but only to the
      same
      extent and with the same effect as the provisions pursuant to which the Company
      has agreed to indemnify the underwriters contained in Section 5 of the
      Underwriting Agreement in the Offering. The Holder(s) of the Registrable
      Securities to be sold pursuant to such Registration Statement, and their
      successors and assigns, shall severally, and not jointly, indemnify the Company,
      its officers and directors and each person, if any, who controls the Company
      within the meaning of Section 15 of the Act or Section 20(a) of the Exchange
      Act, against all loss, claim, damage, expense or liability (including all
      reasonable attorneys’ fees and other expenses reasonably incurred in
      investigating, preparing or defending against any claim whatsoever) to which
      they may become subject under the Act, the Exchange Act or otherwise, arising
      from information furnished by or on behalf of such Holders, or their successors
      or assigns, in writing, for specific inclusion in such Registration Statement
      to
      the same extent and with the same effect as the provisions contained in Section
      5 of the Underwriting Agreement pursuant to which the underwriters have agreed
      to indemnify the Company.

     

    
      
         

      

      
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    5.4.2  Exercise
      of Purchase Options.
      Nothing
      contained in this Purchase Option shall be construed as requiring the Holder(s)
      to exercise their Purchase Options or Warrants underlying such Purchase Options
      prior to or after the initial filing of any registration statement or the
      effectiveness thereof; provided however, that if the Company shall exercise
      its
      right to redeem the Public Warrants, the Holders shall, on or prior to the
      date
      fixed for such redemption, exercise this Unit Purchase Option in
      full.

     

    5.4.3  Documents
      Delivered to Holders.
      The
      Company shall furnish Ferris, as representative of the Holders participating
      in
      any of the foregoing offerings, a signed counterpart, addressed to the
      participating Holders, of (i) an opinion of counsel to the Company, dated the
      effective date of such registration statement (or, if such registration includes
      an underwritten public offering, an opinion dated the date of the closing under
      any underwriting agreement related thereto), and (ii) a “cold comfort” letter
      dated the effective date of such registration statement (and, if such
      registration includes an underwritten public offering, a letter dated the date
      of the closing under the underwriting agreement) signed by the independent
      public accountants who have issued a report on the Company’s financial
      statements included in such registration statement, in each case covering
      substantially the same matters with respect to such registration statement
      (and
      the prospectus included therein) and, in the case of such accountants’ letter,
      with respect to events subsequent to the date of such financial statements,
      as
      are customarily covered in opinions of issuer’s counsel and in accountants’
letters delivered to underwriters in underwritten public offerings of
      securities; provided
      however,
      that in
      the case of an underwritten offering, the provisions of the underwriting
      agreement described in Section 5.4.4 shall control. The Company shall also
      deliver promptly to Ferris, as representative of the Holders participating
      in
      the offering, the correspondence and memoranda described below and copies of
      all
      correspondence between the Commission and the Company, its counsel or auditors
      and all memoranda relating to discussions with the Commission or its staff
      with
      respect to the registration statement and permit Ferris, as representative
      of
      the Holders, to do such investigation, upon reasonable advance notice, with
      respect to information contained in or omitted from the registration statement
      as it deems reasonably necessary to comply with applicable securities laws
      or
      rules of the National Association of Securities Dealers, Inc. (“NASD”). Such
      investigation shall include access to books, records and properties and
      opportunities to discuss the business of the Company with its officers and
      independent auditors, all to such reasonable extent and at such reasonable
      times
      and as often as Ferris, as representative of the Holders, shall reasonably
      request. The Company shall not be required to disclose any confidential
      information or other records to Ferris, as representative of the Holders, or
      to
      any other person, until and unless such persons shall have entered into
      confidentiality agreements (in form and substance reasonably satisfactory to
      the
      Company) with the Company with respect thereto.

     

    
      
         

      

      
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    5.4.4  Underwriting
      Agreement.
      The
      Company shall enter into an underwriting agreement with the managing
      underwriter(s), if any, selected by any Holders whose Registrable Securities
      are
      being registered pursuant to this Section 5, which managing underwriter shall
      be
      reasonably acceptable to the Company. Such agreement shall be reasonably
      satisfactory in form and substance to the Company, each Holder and such managing
      underwriters, and shall contain such representations, warranties and covenants
      by the Company and such other terms as are customarily contained in agreements
      of that type used by the managing underwriter. The Holders shall be parties
      to
      any underwriting agreement relating to an underwritten sale of their Registrable
      Securities and may, at their option, require that any or all the
      representations, warranties and covenants of the Company to or for the benefit
      of such underwriters shall also be made to and for the benefit of such Holders.
      Such Holders shall not be required to make any representations or warranties
      to
      or agreements with the Company or the underwriters except as they may relate
      to
      such Holders and their intended methods of distribution or as are customarily
      required of selling shareholders in a firm commitment underwritten offering.
      Such Holders, however, shall agree to such covenants and indemnification and
      contribution obligations for selling stockholders as are customarily contained
      in agreements of that type used by the managing underwriter. Further, such
      Holders shall execute appropriate custody agreements and otherwise cooperate
      fully in the preparation of the registration statement and other documents
      relating to any offering in which they include securities pursuant to this
      Section 5. Each Holder shall also furnish to the Company such information
      regarding itself, the Registrable Securities held by it, and the intended method
      of disposition of such securities as shall be reasonably required to effect
      the
      registration of the Registrable Securities.

     

    5.4.5  Rule
      144 Sale.
      Notwithstanding anything contained in this Section 5 to the contrary, the
      Company shall have no obligation pursuant to Sections 5.1 or 5.2 for the
      registration of Registrable Securities held by any Holder, where such Holder
      would then be entitled to sell under Rule 144 within any three-month period
      (or
      such other period prescribed under Rule 144 as may be provided by amendment
      thereof) all of the Registrable Securities then held by such
      Holder.

     

    5.4.6  Supplemental
      Prospectus.
      Each
      Holder agrees, that upon receipt of any notice from the Company of the happening
      of any event as a result of which the prospectus included in the Registration
      Statement, as then in effect, includes an untrue statement of a material fact
      or
      omits to state a material fact required to be stated therein or necessary to
      make the statements therein not misleading in light of the circumstances then
      existing, or that would otherwise require disclosure of material nonpublic
      information that, if disclosed at such time, would be materially harmful to
      the
      Company, such Holder will immediately discontinue disposition of Registrable
      Securities pursuant to the Registration Statement covering such Registrable
      Securities until such Holder’s receipt of the copies of a supplemental or
      amended prospectus, or the public disclosure and dissemination of such
      information, as the case may be, and, if so desired by the Company, such Holder
      shall deliver to the Company (at the expense of the Company) or destroy (and
      deliver to the Company a certificate of such destruction) all copies, other
      than
      permanent file copies then in such Holder’s possession, of the prospectus
      covering such Registrable Securities current at the time of receipt of such
      notice.

     

    
      
         

      

      
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    6.  Adjustments.

     

    6.1  Adjustments
      to Exercise Price and Number of Securities.
      The
      Exercise Price and the number of Units underlying the Purchase Option shall
      be
      subject to adjustment from time to time as hereinafter set forth:

     

    6.1.1  Stock
      Dividends; Split Ups.
      If
      after the date hereof, and subject to the provisions of Section 6.3 below,
      the
      number of outstanding shares of Common Stock is increased by a stock dividend
      payable in shares of Common Stock or by a split up of shares of Common Stock
      or
      other similar event, then, on the effective day thereof, the number of shares
      of
      Common Stock underlying each of the Units purchasable hereunder shall be
      increased in proportion to such increase in outstanding shares. In such case,
      the number of shares of Common Stock, and the exercise price applicable thereto,
      underlying the Warrants underlying each of the Units purchasable hereunder
      shall
      be adjusted in accordance with the terms of the Warrant Agreement governing
      the
      Warrants (the “Warrant Agreement”). For example, if the Company declares a
      two-for-one stock dividend and at the time of such dividend this Purchase Option
      is for the purchase of one Unit at $7.50 per whole Unit (the Warrant underlying
      the Units is exercisable for $6.25 per share), upon effectiveness of the
      dividend, this Purchase Option will be adjusted to allow for the purchase of
      one
      Unit at $7.50 per Unit, each Unit entitling the holder to receive two shares
      of
      Common Stock and four Warrants (each Warrant exercisable for $3.125 per
      share).

     

    6.1.2  Aggregation
      of Shares.
      If
      after the date hereof, and subject to the provisions of Section 6.3, the number
      of outstanding shares of Common Stock is decreased by a consolidation,
      combination or reclassification of shares of Common Stock or other similar
      event, then, on the effective date thereof, the number of shares of Common
      Stock
      underlying each of the Units purchasable hereunder shall be decreased in
      proportion to such decrease in outstanding shares. In such case, the number
      of
      shares of Common Stock, and the exercise price applicable thereto, underlying
      the Warrants underlying each of the Units purchasable hereunder shall be
      adjusted in accordance with the terms of the Warrants. 

     

    6.1.3  Replacement
      of Securities upon Reorganization, etc.
      In case
      of any reclassification or reorganization of the outstanding shares of Common
      Stock other than a change covered by Section 6.1.1 or 6.1.2 hereof or that
      solely affects the par value of such shares of Common Stock, or in the case
      of
      any merger or consolidation of the Company with or into another corporation
      (other than a consolidation or merger in which the Company is the continuing
      corporation and that does not result in any reclassification or reorganization
      of the outstanding shares of Common Stock), or in the case of any sale or
      conveyance to another corporation or entity of the property of the Company
      as an
      entirety or substantially as an entirety in connection with which the Company
      is
      dissolved, the Holder of this Purchase Option shall have the right thereafter
      (until the expiration of the right of exercise of this Purchase Option) to
      receive upon the exercise hereof, for the same aggregate Exercise Price payable
      hereunder immediately prior to such event, the kind and amount of shares of
      stock or other securities or property (including cash) receivable upon such
      reclassification, reorganization, merger or consolidation, or upon a dissolution
      following any such sale or transfer, by a Holder of the number of shares of
      Common Stock of the Company obtainable upon exercise of this Purchase Option
      and
      the underlying Warrants immediately prior to such event; and if any
      reclassification also results in a change in shares of Common Stock covered
      by
      Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant to Sections
      6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall
      similarly apply to successive reclassifications, reorganizations, mergers or
      consolidations, sales or other transfers.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    6.1.4  Changes
      in Form of Purchase Option.
      This
      form of Purchase Option need not be changed because of any change pursuant
      to
      this Section, and Purchase Options issued after such change may state the same
      Exercise Price and the same number of Units as are stated in the Purchase
      Options initially issued pursuant to this Agreement. The acceptance by any
      Holder of the issuance of new Purchase Options reflecting a required or
      permissive change shall not be deemed to waive any rights to an adjustment
      occurring after the Commencement Date or the computation thereof.

     

    6.2  Substitute
      Purchase Option.
      In case
      of any consolidation of the Company with, or merger of the Company with or
      into,
      another corporation (other than a consolidation or merger which does not result
      in any reclassification or change of the outstanding Common Stock), the
      corporation formed by such consolidation or merger shall execute and deliver
      to
      the Holder a supplemental Purchase Option providing that the holder of each
      Purchase Option then outstanding or to be outstanding shall have the right
      thereafter (until the stated expiration of such Purchase Option) to receive,
      upon exercise of such Purchase Option, the kind and amount of shares of stock
      and other securities and property receivable upon such consolidation or merger,
      by a holder of the number of shares of Common Stock of the Company for which
      such Purchase Option might have been exercised immediately prior to such
      consolidation, merger, sale or transfer. Such supplemental Purchase Option
      shall
      provide for adjustments which shall be identical to the adjustments provided
      in
      Section 6. The above provision of this Section shall similarly apply to
      successive consolidations or mergers.

     

    6.3  Elimination
      of Fractional Interests.
      The
      Company shall not be required to issue certificates representing fractions
      of
      shares of Common Stock or Warrants upon the exercise of the Purchase Option,
      nor
      shall it be required to issue scrip or pay cash in lieu of any fractional
      interests, it being the intent of the parties that all fractional interests
      shall be eliminated by rounding any fraction up to the nearest whole number
      of
      Warrants, shares of Common Stock or other securities, properties or
      rights.

     

    7.  Reservation
      and Listing.
      The
      Company shall at all times reserve and keep available out of its authorized
      shares of Common Stock, solely for the purpose of issuance upon exercise of
      the
      Purchase Options or the Warrants underlying the Purchase Option, such number
      of
      shares of Common Stock or other securities, properties or rights as shall be
      issuable upon the exercise thereof. The Company covenants and agrees that,
      upon
      exercise of the Purchase Options and payment of the Exercise Price therefor,
      in
      accordance with the terms hereby, all shares of Common Stock and other
      securities issuable upon such exercise shall be duly and validly issued, fully
      paid and non-assessable and not subject to preemptive rights of any stockholder.
      The Company further covenants and agrees that upon exercise of the Warrants
      underlying the Purchase Options and payment of the respective Warrant exercise
      price therefor, in accordance with the terms of the Warrant Agreement, all
      shares of Common Stock and other securities issuable upon such exercise shall
      be
      duly and validly issued, fully paid and non-assessable and not subject to
      preemptive rights of any stockholder. As long as the Purchase Options shall
      be
      outstanding, the Company shall use its commercially reasonable efforts to cause
      all (i) shares of Common Stock issuable upon exercise of the Purchase Options,
      (ii) Warrants issuable upon exercise of the Purchase Options and (iii) shares
      of
      Common Stock issuable upon exercise of the Warrants included in the Units
      issuable upon exercise of the Purchase Option to be listed (subject to official
      notice of issuance) on all securities exchanges (or, if applicable on the Nasdaq
      National Market, SmallCap Market, OTC Bulletin Board or any successor trading
      market) on which the Units, Common Stock or the Public Warrants issued to the
      public in the Offering may then be listed and/or quoted.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    8.  Certain
      Notice Requirements.

     

    8.1  Holder’s
      Right to Receive Notice.
      Nothing
      herein shall be construed as conferring upon the Holders the right to vote
      or
      consent or to receive notice as a stockholder for the election of directors
      or
      any other matter, or as having any rights whatsoever as a stockholder of the
      Company. If, however, at any time prior to the expiration of the Purchase
      Options and their exercise, any of the events described in Section 8.2 shall
      occur, then, in one or more of said events, the Company shall give written
      notice of such event at least fifteen days prior to the date fixed as a record
      date or the date of closing the transfer books for the determination of the
      stockholders entitled to such dividend, distribution, conversion or exchange
      of
      securities or subscription rights, or entitled to vote on such proposed
      dissolution, liquidation, winding up or sale. Such notice shall specify such
      record date or the date of the closing of the transfer books, as the case may
      be. Notwithstanding the foregoing, the Company shall deliver to each Holder
      a
      copy of each notice given to the other stockholders of the Company at the same
      time and in the same manner that such notice is given to the
      stockholders.

     

    8.2  Events
      Requiring Notice.
      The
      Company shall be required to give the notice described in this Section 8 upon
      one or more of the following events: (i) if the Company shall take a record
      of
      the holders of its shares of Common Stock for the purpose of entitling them
      to
      receive a dividend or distribution payable otherwise than in cash, or a cash
      dividend or distribution payable otherwise than out of retained earnings, as
      indicated by the accounting treatment of such dividend or distribution on the
      books of the Company, (ii) the Company shall offer to all the holders of its
      Common Stock any additional shares of capital stock of the Company or securities
      convertible into or exchangeable for shares of capital stock of the Company,
      or
      any option, right or warrant to subscribe therefor, or (iii) a dissolution,
      liquidation or winding up of the Company (other than in connection with a
      consolidation or merger) or a sale of all or substantially all of its property,
      assets and business shall be proposed.

     

    8.3  Notice
      of Change in Exercise Price.
      The
      Company shall, promptly after an event requiring a change in the Exercise Price
      pursuant to Section 6 hereof, send notice to the Holders of such event and
      change (“Price Notice”). The Price Notice shall describe the event causing the
      change and the method of calculating same and shall be certified as being true
      and accurate by the Company’s Chief Financial Officer.

     

    8.4  Transmittal
      of Notices.
      All
      notices, requests, consents and other communications under this Purchase Option
      shall be in writing and shall be deemed to have been duly made when hand
      delivered, or mailed by express mail or private courier service: (i) If to
      the
      registered Holder of the Purchase Option, to the address of such Holder as
      shown
      on the books of the Company, or (ii) if to the Company, to following address
      or
      to such other address as the Company may designate by notice to the Holders:
      

     

    Crossfire
      Capital Corporation

    950
      Third
      Avenue, Suite 2500

    New
      York,
      NY 10022

    Attn:
      Martin Oliner

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    9.  Miscellaneous.

     

    9.1  Amendments.
      The
      Company and Ferris may from time to time supplement or amend this Purchase
      Option without the approval of any of the Holders in order to cure any
      ambiguity, to correct or supplement any provision contained herein that may
      be
      defective or inconsistent with any other provisions herein, or to make any
      other
      provisions in regard to matters or questions arising hereunder that the Company
      and Ferris may deem necessary or desirable and that the Company and Ferris
      deem
      shall not adversely affect the interest of the Holders. All other modifications
      or amendments shall require the written consent of and be signed by the party
      against whom enforcement of the modification or amendment is
      sought.

     

    9.2  Headings.
      The
      headings contained herein are for the sole purpose of convenience of reference,
      and shall not in any way limit or affect the meaning or interpretation of any
      of
      the terms or provisions of this Purchase Option.

     

    10.  Entire
      Agreement.
      This
      Purchase Option (together with the other agreements and documents being
      delivered pursuant to or in connection with this Purchase Option) constitutes
      the entire agreement of the parties hereto with respect to the subject matter
      hereof, and supersedes all prior agreements and understandings of the parties,
      oral and written, with respect to the subject matter hereof.

     

    10.1  Binding
      Effect.
      This
      Purchase Option shall inure solely to the benefit of and shall be binding upon,
      the Holder and the Company and their permitted assignees, respective successors,
      legal representative and assigns, and no other person shall have or be construed
      to have any legal or equitable right, remedy or claim under or in respect of
      or
      by virtue of this Purchase Option or any provisions herein
      contained.

     

    10.2  Governing
      Law; Submission to Jurisdiction.
      This
      Purchase Option shall be governed by and construed and enforced in accordance
      with the laws of the State of Maryland, without giving effect to conflict of
      laws. The Company hereby agrees that any action, proceeding or claim against
      it
      arising out of, or relating in any way to this Purchase Option shall be brought
      and enforced in the courts of the State of Maryland or of the United States
      of
      America for the Southern District of Maryland, and irrevocably submits to such
      jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives
      any objection to such exclusive jurisdiction and that such courts represent
      an
      inconvenient forum. Any process or summons to be served upon the Company may
      be
      served by transmitting a copy thereof by registered or certified mail, return
      receipt requested, postage prepaid, addressed to it at the address set forth
      in
      Section 8 hereof. Such mailing shall be deemed personal service and shall be
      legal and binding upon the Company in any action, proceeding or claim. The
      Company and the Holder agree that the prevailing party(ies) in any such action
      shall be entitled to recover from the other party(ies) all of its reasonable
      attorneys’ fees and expenses relating to such action or proceeding and/or
      incurred in connection with the preparation therefor. 

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    10.3  Waiver,
      Etc.
      The
      failure of the Company or the Holder to at any time enforce any of the
      provisions of this Purchase Option shall not be deemed or construed to be a
      waiver of any such provision, nor to in any way affect the validity of this
      Purchase Option or any provision hereof or the right of the Company or any
      Holder to thereafter enforce each and every provision of this Purchase Option.
      No waiver of any breach, non-compliance or non-fulfillment of any of the
      provisions of this Purchase Option shall be effective unless set forth in a
      written instrument executed by the party or parties against whom or which
      enforcement of such waiver is sought; and no waiver of any such breach,
      non-compliance or non-fulfillment shall be construed or deemed to be a waiver
      of
      any other or subsequent breach, non-compliance or non-fulfillment.

     

    10.4  Execution
      in Counterparts.
      This
      Purchase Option may be executed in one or more counterparts, and by the
      different parties hereto in separate counterparts, each of which shall be deemed
      to be an original, but all of which taken together shall constitute one and
      the
      same agreement, and shall become effective when one or more counterparts has
      been signed by each of the parties hereto and delivered to each of the other
      parties hereto.

     

    10.5  Exchange
      Agreement.
      As a
      condition of the Holder’s receipt and acceptance of this Purchase Option, Holder
      agrees that, at any time prior to the complete exercise of this Purchase Option
      by Holder, if the Company and Ferris enter into an agreement (“Exchange
      Agreement”) pursuant to which they agree that all outstanding Purchase Options
      will be exchanged for securities or cash or a combination of both, then Holder
      shall agree to such exchange and become a party to the Exchange Agreement.
      

     

    

     

    [Remainder
      of page deliberately left blank]

     

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the Company has caused this Purchase Option to be signed by
      its
      duly authorized officer as of the ___ day of __________, 2006.

     

    CROSSFIRE
      CAPITAL CORPORATION

     

    By:_________________________________

    Name:
      Martin Oliner

    Its:
      President

    
 

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
 

     

    Form
      to be used to exercise Purchase Option:

     

    Crossfire
      Capital Corporation

    950
      Third
      Avenue, Suite 2500

    New
      York,
      NY 10022

    Attn:
      Martin Oliner

     

    Date:_________________,
      200__

     

    The
      undersigned hereby elects irrevocably to exercise the within Purchase Option
      and
      to purchase ____ Units of Crossfire Capital Corporation and hereby makes payment
      of $____________ (at the rate of $_________ per Unit) in payment of the Exercise
      Price pursuant thereto. Please issue the Common Stock and Warrants as to which
      this Purchase Option is exercised in accordance with the instructions given
      below.

     

    or

     

    The
      undersigned hereby elects irrevocably to convert its right to purchase _________
      Units purchasable under the within Purchase Option by surrender of the
      unexercised portion of the attached Purchase Option (with a “Value” based of
      $_______ based on a “Market Price” of $_______). Please issue the securities
      comprising the Units as to which this Purchase Option is exercised in accordance
      with the instructions given below.

     

    ______________________________

    Signature

     

    ______________________________

    Signature
      Guaranteed

     

    INSTRUCTIONS
      FOR REGISTRATION OF SECURITIES

     

    Name_____________________________________________________________

    (Print
      in
      Block Letters)

     

    Address__________________________________________________________

     

    NOTICE:
      The signature to this form must correspond with the name as written upon the
      face of the within Purchase Option in every particular without alteration or
      enlargement or any change whatsoever, and must be guaranteed by a bank, other
      than a savings bank, or by a trust company or by a firm having membership on
      a
      registered national securities exchange.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    Form
      to be used to assign Purchase Option:

     

    ASSIGNMENT

     

    (To
      be
      executed by the registered Holder to effect a transfer of the within Purchase
      Option):

     

    FOR
      VALUE
      RECEIVED,___________________________________________ does hereby sell, assign
      and transfer unto___________________________________________ the right to
      purchase __________ Units of Crossfire Capital Corporation (“Company”) evidenced
      by the within Purchase Option and does hereby authorize the Company to transfer
      such right on the books of the Company.

     

    Dated:___________________,
      200_

     

    ______________________________

    Signature

     

    ______________________________

    Signature
      Guaranteed

     

    NOTICE:
      The signature to this form must correspond with the name as written upon the
      face of the within Purchase Option in every particular without alteration or
      enlargement or any change whatsoever, and must be guaranteed by a bank, other
      than a savings bank, or by a trust company or by a firm having membership on
      a
      registered national securities exchange.

     

    
      
         

      

      
        16AMENDED
      AND RESTATED

    

    STOCKHOLDER
      PROTECTION RIGHTS AGREEMENT

    

    dated
      as of

    

    June
      22, 2006

    

    between

    

    WILSHIRE
      ENTERPRISES, INC.

    

    and

    

    CONTINENTAL
      STOCK TRANSFER & TRUST COMPANY,

    

    as
      Rights Agent

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    TABLE
      OF CONTENTS

    

    Page

    Article
      I

    CERTAIN
      DEFINITIONS

    

    
      	
              Section
                1.1

            	
              Certain
                Definitions

            	
              2

            

    

    

    Article
      II

    THE
      RIGHTS

    

    
      	
              Section
                2.1

            	
              Summary
                of Rights

            	
              6

            
	
              Section
                2.2

            	
              Legend
                on Common Stock Certificates

            	
              7

            
	
              Section
                2.3

            	
              Exercise
                of Rights; Separation of Rights

            	
              7

            
	
              Section
                2.4

            	
              Adjustments
                to Exercise Price; Number of Rights

            	
              9

            
	
              Section
                2.5

            	
              Date
                on Which Exercise is Effective

            	
              10

            
	
              Section
                2.6

            	
              Execution,
                Authentication, Delivery and Dating of Rights Certificates

            	
              10

            
	
              Section
                2.7

            	
              Registration,
                Registration of Transfer and Exchange

            	
              11

            
	
              Section
                2.8

            	
              Mutilated,
                Destroyed, Lost and Stolen Rights Certificates

            	
              11

            
	
              Section
                2.9

            	
              Persons
                Deemed Owners

            	
              12

            
	
              Section
                2.10

            	
              Delivery
                and Cancellation of Certificates

            	
              12

            
	
              Section
                2.11

            	
              Agreement
                of Rights Holders

            	
              12

            

    

     

    Article
      III

    ADJUSTMENTS
      TO THE RIGHTS IN THE EVENT OF

    CERTAIN
      TRANSACTIONS

    

    
      	
              Section
                3.1

            	
              Flip-in

            	
              13

            
	
              Section
                3.2

            	
              Flip-over

            	
              15

            

    

    

    Article
      IV

    THE
      RIGHTS AGENT

    

    
      	
              Section
                4.1

            	
              General

            	
              16

            
	
              Section
                4.2

            	
              Merger
                or Consolidation or Change of Name of Rights Agent

            	
              16

            
	
              Section
                4.3

            	
              Duties
                of Rights Agent

            	
              17

            
	
              Section
                4.4

            	
              Change
                of Rights Agent

            	
              18

            

    

    

    Article
      V

    MISCELLANEOUS

    

    
      	
              Section
                5.1

            	
              Redemption

            	
              19

            
	
              Section
                5.2

            	
              Expiration

            	
              19

            
	
              Section
                5.3

            	
              Issuance
                of New Rights Certificates

            	
              19

            
	
              Section
                5.4

            	
              Supplements
                and Amendments

            	
              20

            

    

     

    
      
        
        

      

      
        -i-

        
          

        

      

      
        
        

      

    

    

    
      	
              Section
                5.5

            	
              Fractional
                Shares

            	
              20

            
	
              Section
                5.6

            	
              Rights
                of Action

            	
              20

            
	
              Section
                5.7

            	
              Holder
                of Rights Not Deemed a Stockholder

            	
              21

            
	
              Section
                5.8

            	
              Notice
                of Proposed Actions

            	
              21

            
	
              Section
                5.9

            	
              Notices

            	
              21

            
	
              Section
                5.10

            	
              Suspension
                of Exercisability

            	
              22

            
	
              Section
                5.11

            	
              Costs
                of Enforcement

            	
              22

            
	
              Section
                5.12

            	
              Successors

            	
              22

            
	
              Section
                5.13

            	
              Benefits
                of this Agreement

            	
              22

            
	
              Section
                5.14

            	
              Determination
                and Actions by the Board of Directors, etc.

            	
              22

            
	
              Section
                5.15

            	
              Descriptive
                Headings

            	
              23

            
	
              Section
                5.16

            	
              Governing
                Law

            	
              23

            
	
              Section
                5.17

            	
              Counterparts

            	
              23

            
	
              Section
                5.18

            	
              Severability

            	
              23

            

    

     

    EXHIBITS

    

    
      	
              Exhibit
                A

            	
              Form
                of Rights Certificate (Together with Form of Election to
                Exercise)

            
	 	 
	
              Exhibit
                B

            	
              Form
                of Certificate of Designations and Terms of Series A Participating
                Preferred Stock of Wilshire Enterprises,
                Inc.

            

    

     

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
        

      

    

    

    AMENDED
      AND RESTATED

    STOCKHOLDER
      PROTECTION RIGHTS AGREEMENT

    

    AMENDED
      AND RESTATED STOCKHOLDER PROTECTION RIGHTS AGREEMENT (as it may be amended
      from
      time to time, this “Agreement”), dated as of June 22, 2006, between WILSHIRE
      ENTERPRISES, INC., a Delaware corporation (the “Company”), and Continental Stock
      Transfer & Trust Company, a limited purpose trust company organized under
      the banking laws of the State of New York, as Rights Agent (the “Rights Agent”,
      which term shall include any successor Rights Agent hereunder). 

    

    WITNESSETH
      :

    

    WHEREAS,
      the Board of Directors of the Company previously (a) authorized and declared
      a
      dividend of one right (“Right”) in respect of each share of Common Stock (as
      hereinafter defined) held of record as of July 6, 1996 (the “Record Time”) and
      (b) as provided in Section 2.4, authorized the issuance of one Right in respect
      of each share of Common Stock issued after the Record Time and prior to the
      Separation Time (as hereinafter defined) and, to the extent provided in Section
      5.3, each share of Common Stock issued after the Separation Time; 

    

    WHEREAS,
      each Right entitles the holder thereof, after the Separation Time, to purchase
      securities of the Company (or, in certain cases, of certain other entities)
      pursuant to the terms and subject to the terms and conditions set forth herein;
      

    

    WHEREAS,
      the Company previously appointed the Rights Agent to act on behalf of the
      Company, and the Rights Agent is willing so to act, in connection with the
      issuance, transfer, exchange, replacement and redemption of Rights Certificates
      (as hereinafter defined), the exercise of Rights and other matters referred
      to
      herein; 

    

    WHEREAS,
      the Company entered into a Stockholder Protection Rights Agreement with the
      Rights Agent dated as of June 21, 1996 to govern the administration of the
      Rights (the “Prior Agreement”);

    

    WHEREAS,
      the Prior Agreement would have expired on July 6, 2006; and

    

    WHEREAS,
      the Board of Directors of the Company has determined that it is in the best
      interests of the Company and its stockholders to extend the term of the Prior
      Agreement as described herein;

    

    NOW
      THEREFORE, in consideration of the premises and the respective agreements set
      forth herein, the parties hereby agree that the Prior Agreement is hereby
      amended and restated in its entirety to provide as follows: 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      I

    CERTAIN
      DEFINITIONS

    

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

    

    “Acquiring
      Person” shall mean any Person who is a Beneficial Owner of 15% or more of the
      outstanding shares of Common Stock; provided, however, that the term “Acquiring
      Person” shall not include any Person (i) who was the Beneficial Owner of 10% or
      more of the outstanding shares of Common Stock as of June 21, 1996 as long
      as
      such Person does not become the Beneficial Owner of 25% or more of the
      outstanding shares of Common Stock or who shall become the Beneficial Owner
      of
      15% or more, or, in the case of a Person who was the Beneficial Owner of 10%
      or
      more of the outstanding shares of Common Stock as of June 21, 1996, 25% or
      more,
      of the outstanding shares of Common Stock solely as a result of an acquisition
      by the Company of shares of Common Stock, until such time hereafter or
      thereafter as any of such Persons shall become the Beneficial Owner (other
      than
      by means of a stock dividend or stock split) of any additional shares of Common
      Stock, (ii) who is the Beneficial Owner of 15% or more of the outstanding shares
      of Common Stock but who (as determined by the Company’s Board of Directors in
      good faith) acquired Beneficial Ownership of shares of Common Stock without
      any
      plan or intention to seek or affect control of the Company, unless and until
      such Person shall have failed to divest itself, as soon as practicable (as
      determined by the Company’s Board of Directors in good faith), of Beneficial
      Ownership of a sufficient number of shares of Common Stock so that such Person
      would no longer otherwise qualify as an “Acquiring Person” or (iii) who
      Beneficially Owns shares of Common Stock consisting solely of one or more of
      (A)
      shares of Common Stock Beneficially Owned pursuant to the grant or exercise
      of
      an option granted to such Person (an “Option Holder”) by the Company in
      connection with an agreement to merge with, or acquire, the Company entered
      into
      prior to a Flip-in Date, (B) shares of Common Stock (or securities convertible
      into, exchangeable into or exercisable for Common Stock), Beneficially Owned
      by
      such Option Holder or its Affiliates or Associates at the time of the grant
      of
      such option or (C) shares of Common Stock (or securities convertible into,
      exchangeable into or exercisable for Common Stock) acquired by Affiliates or
      Associates of such Option Holder after the time of such grant which, in the
      aggregate, amount to less than 1% of the outstanding shares of Common Stock.
      In
      addition, the Company, any wholly-owned Subsidiary of the Company and any
      employee stock ownership or other employee benefit plan of the Company or a
      wholly-owned Subsidiary of the Company shall not be an Acquiring Person.

    

    “Affiliate”
      and “Associate” shall have the respective meanings ascribed to such terms in
      Rule 12b-2 under the Exchange Act, as such Rule was in effect on June 21, 1996.
      

    

    A
      Person
      shall be deemed the “Beneficial Owner”, and to have “Beneficial Ownership” of,
      and to “Beneficially Own”, any securities as to which such Person or any of such
      Person’s Affiliates or Associates is or may be deemed to be the beneficial owner
      of pursuant to Rule 13d-3 and 13d-5 under the Exchange Act, as such Rules were
      in effect on June 21, 1996 as well as any securities as to which such Person
      or
      any of such Person’s Affiliates or Associates has the right to become Beneficial
      Owner (whether such right is exercisable immediately or only after the passage
      of time or the occurrence of conditions) pursuant to any agreement, arrangement
      or understanding, or upon the exercise of conversion rights, exchange rights,
      rights (other than the Rights), warrants or options, or otherwise; provided,
      however, that a Person shall not be deemed the “Beneficial Owner”, or to have
“Beneficial Ownership” of, or to “Beneficially Own”, any security (i) solely
      because such security has been tendered pursuant to a tender or exchange offer
      made by such Person or any of such Person’s Affiliates or Associates until such
      tendered security is accepted for payment or exchange or (ii) solely because
      such Person or any of such Person’s Affiliates or Associates has or shares the
      power to vote or direct the voting of such security pursuant to a revocable
      proxy given in response to a public proxy or consent solicitation made to more
      than ten holders of shares of a class of stock of the Company registered under
      Section 12 of the Exchange Act and pursuant to, and in accordance with, the
      applicable rules and regulations under the Exchange Act, except if such power
      (or the arrangements relating thereto) is then reportable under Item 6 of
      Schedule 13D under the Exchange Act. Notwithstanding the foregoing, no officer
      or director of the Company shall be deemed to Beneficially Own any securities
      of
      any other Person by virtue of any actions such officer or director takes in
      such
      capacity. For purposes of this Agreement, in determining the percentage of
      the
      outstanding shares of Common Stock with respect to which a Person is the
      Beneficial Owner, all shares as to which such Person is deemed the Beneficial
      Owner shall be deemed outstanding. 

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

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

    

    “Close
      of
      business” on any given date shall mean 5:00 p.m. New York City time on such date
      or, if such date is not a Business Day, 5:00 p.m. New York City time on the
      next
      succeeding Business Day. 

    

    “Common
      Stock” shall mean the shares of common stock, par value $1.00 per share, of the
      Company. 

    

    “Control”
      shall have the meaning set forth in the definition of “Flip-over Transaction or
      Event” set forth in this Section 1.1. 

    

    “Election
      to Exercise” shall have the meaning set forth in Section 2.3(d) hereof.

    

    “Exchange
      Act” shall mean the Securities Exchange Act of 1934 as amended from time to time
      or any federal statute from time to time in effect that has replaced such
      statute. Any reference in this Agreement to a provision of the Exchange Act
      or a
      rule or regulation promulgated thereunder shall mean, unless otherwise
      specified, such provision, rule or regulation as amended from time to time
      or
      any provision of a federal law, or any federal rule or regulation from time
      to
      time in effect that has replaced such provision, rule or regulation.

    

    “Exchange
      Ratio” shall have the meaning set forth in Section 3.1(c) hereof. 

    

    “Exchange
      Time” shall mean the time at which the right to exercise the Rights shall
      terminate pursuant to Section 3.1(c) hereof. 

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    

    “Exercise
      Price” shall mean, as of any date, the price at which a holder may purchase the
      securities issuable upon exercise of one whole Right. Until adjustment thereof
      in accordance with the terms hereof, the Exercise Price shall equal $25.00.
      

    

    “Expansion
      Factor” shall have the meaning set forth in Section 2.4(a) hereof. 

    

    “Expiration
      Time” shall mean the earliest of (i) the Exchange Time, (ii) the Redemption
      Time, (iii) the effective time of a consolidation, merger or share exchange
      (each a “Business Combination”) of the Company into another entity pursuant to
      an agreement entered into prior to a Flip-in Date, (iv) the close of business
      on
      August 31, 2007, unless the Independent Directors determine at a meeting to
      be
      held within 30 days prior to August 31, 2007, that this Agreement continues
      to
      be in the best interests of the Company and its stockholders, (v) the close
      of
      business on August 31, 2008, unless the stockholders of the Company approve
      this
      Agreement at the Company’s 2008 annual meeting of stockholders and (vi) the
      close of business on August 31, 2010. 

    

    “Flip-in
      Date” shall mean the first date that an Acquiring Person has become such.

    

    “Flip-over
      Entity,” for purposes of Section 3.2, shall mean (i) in the case of a Flip-over
      Transaction or Event described in clause (i) of the definition thereof, the
      Person issuing any securities into which shares of Common Stock are being
      converted or exchanged and, if no such securities are being issued, the other
      party to such Flip-over Transaction or Event and (ii) in the case of a Flip-over
      Transaction or Event referred to in clause (ii) of the definition thereof,
      the
      Person receiving the greatest portion of the assets or earning power being
      transferred in such Flip-over Transaction or Event, provided in all cases if
      such Person is a Subsidiary of a corporation, the ultimate parent corporation
      shall be the Flip-over Entity. 

    

    “Flip-over
      Stock” shall mean the capital stock (or similar equity interest) with the
      greatest voting power in respect of the election of directors (or other persons
      similarly responsible for direction of the business and affairs) of the
      Flip-Over Entity. 

    

    “Flip-over
      Transaction or Event” shall mean a transaction or series of transactions after a
      Flip-in Date in which, directly or indirectly, (i) the Company shall consolidate
      or merge or participate in a binding share exchange with any other Person if,
      at
      the time of the consolidation, merger or share exchange or at the time the
      Company enters into any agreement with respect to any such consolidation, merger
      or share exchange, the Acquiring Person Controls the Board of Directors of
      the
      Company and either (A) any term of any agreement or arrangement concerning
      the
      treatment of shares of capital stock in such consolidation, merger or share
      exchange relating to the Acquiring Person is not identical to the terms and
      arrangements relating to other holders of the Common Stock or (B) the Person
      with whom the transaction or series of transactions occurs is the Acquiring
      Person or an Affiliate or Associate of an Acquiring Person or (ii) the Company
      shall sell or otherwise transfer (or one or more of its Subsidiaries shall
      sell
      or otherwise transfer) assets (A) aggregating more than 50% of the assets
      (measured by either book value or fair market value) or (B) generating more
      than
      50% of the operating income or cash flow, of the Company and its Subsidiaries
      taken as a whole to any Person (other than the Company or one or more of its
      wholly owned Subsidiaries) or to two or more such Persons which are Affiliates
      or Associates or otherwise acting in concert, if, at the time of the entry
      by
      the Company (or any such Subsidiary) into an agreement with respect to such
      sale
      or transfer of assets, the Acquiring Person controls the Board of Directors
      of
      the Company. An Acquiring Person shall be deemed to “Control” the Company’s
      Board of Directors when, following a Flip-in Date, the Persons who were
      directors of the Company before the Flip-in Date shall cease to constitute
      a
      majority of the Company’s Board of Directors. 

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    

    “holder”
      shall have the meaning set forth in Section 2.9 hereof. 

    

    “Independent
      Directors” shall mean those members of the Board of Directors of the Company who
      constitute “independent directors” as defined in the American Stock Exchange’s
      Corporate Governance Rules as in effect from time to time.

    

    “Market
      Price” per share of any securities on any date shall mean the average of the
      daily closing prices per share of such securities (determined as described
      below) on each of the 20 consecutive Trading Days through and including the
      Trading Day immediately preceding such date; provided, however, that if an
      event
      of a type analogous to any of the events described in Section 2.4 hereof shall
      have caused the closing prices used to determine the Market Price on any Trading
      Days during such period of 20 Trading Days not to be fully comparable with
      the
      closing price on such date, each such closing price so used shall be
      appropriately adjusted in order to make it fully comparable with the closing
      price on such date. The closing price per share of any securities on any date
      shall be the last reported sale price, regular way, or, in case no such sale
      takes place or is quoted on such date, the average of the closing bid and ask
      prices, regular way, for each share of such securities, in either case as
      reported in the principal consolidated transaction reporting system with respect
      to securities listed or admitted to trading on the American Stock Exchange,
      or,
      if the securities are not listed or admitted to trading on the American Stock
      Exchange, as reported in the principal consolidated transaction reporting system
      with respect to securities listed on the principal national securities exchange
      on which the securities are listed or admitted to trading or, if the securities
      are not listed or admitted to trading on any national securities exchange,
      as
      reported by the National Association of Securities Dealers Automated Quotation
      System or such other system then in use, or, if on any such date the securities
      are not listed or admitted to trading on any national securities exchange or
      quoted by any such organization, the average of the closing bid and ask prices
      as furnished by a professional market maker making a market in the securities
      selected by the Board of Directors of the Company; provided, however, that
      if on
      any such date the securities are not listed or admitted to trading on a national
      securities exchange or traded in the over-the-counter market, the closing price
      per share of such securities on such date shall mean the fair value per share
      of
      such securities on such date as determined in good faith by the Board of
      Directors of the Company, after consultation with a nationally recognized
      investment banking firm, and set forth in a certificate delivered to the Rights
      Agent. 

    

    “Person”
      shall mean any individual, firm, partnership, association, group (as such term
      is used in Rule 13d-5 under the Exchange Act, as such Rule was in effect on
      June
      21, 1996), company, corporation or other entity. 

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    

    “Preferred
      Stock” shall mean the series of Series A Participating Preferred Stock, par
      value $1.00 per share, of the Company created by a Certificate of Designations
      and Terms in substantially the form set forth in Exhibit B. 

    

    “Redemption
      Price” shall mean an amount equal to one cent, $0.01. 

    

    “Redemption
      Time” shall mean the time at which the right to exercise the Rights shall
      terminate pursuant to Section 5.1 hereof. 

    

    “Rights
      Certificate” shall have the meaning set forth in Section 2.3(c) hereof.

    

    “Rights
      Register” shall have the meaning set forth in Section 2.7(a) hereof.

    

    “Separation
      Time” shall mean the close of business on the earlier of (i) the tenth business
      day (or such later date as the Board of Directors of the Company may from time
      to time fix by resolution adopted prior to any Separation Time that would
      otherwise have occurred) after the date on which any Person commences a tender
      or exchange offer which, if consummated, would result in such Person’s becoming
      an Acquiring Person and (ii) the Flip-in Date; provided that if any tender
      or
      exchange offer referred to in clause (i) of this paragraph is canceled,
      terminated or otherwise withdrawn prior to the Separation Time without the
      purchase of any shares of Common Stock pursuant thereto, such offer shall be
      deemed, for purposes of this paragraph, never to have been made. 

    

    “Stock
      Acquisition Date” shall mean the first date of public announcement by the
      Company (by any means) that an Acquiring Person has become such. 

    

    “Subsidiary”
      of any specified Person shall mean any corporation or other entity of which
      a
      majority of the voting power of the equity securities or a majority of the
      equity interest is Beneficially Owned, directly or indirectly, by such Person.
      

    

    “Trading
      Day,” when used with respect to any securities, shall mean a day on which the
      American Stock Exchange is open for the transaction of business or, if such
      securities are not listed or admitted to trading on the American Stock Exchange,
      a day on which the principal national securities exchange on which such
      securities are listed or admitted to trading is open for the transaction of
      business or, if such securities are not listed or admitted to trading on any
      national securities exchange, a Business Day. 

    

    ARTICLE
      II

    THE
      RIGHTS

    

    2.1 Summary
      of Rights.
      As soon
      as practicable after the Record Time, the Company mailed a letter summarizing
      the terms of the Rights to each holder of record of Common Stock as of the
      Record Time, at such holder’s address as shown by the records of the Company.
      Rights shall be issued in respect of all shares of Common Stock issued or
      disposed of (including, without limitation, upon disposition of Common Stock
      out
      of treasury stock or issuance or reissuance of Common Stock out of authorized
      but unissued shares) after the Record Time but prior to the earlier of the
      Separation Time or the Expiration Time. In the event that the Company purchases
      or otherwise acquires Common Stock after the Record Time but prior to the
      Separation Time, the Rights associated with such Common Stock shall be deemed
      canceled and retired so that the Company shall not be entitled to exercise
      any
      Rights associated with the shares of Common Stock which are no longer
      outstanding.

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    

    2.2 Legend
      on Common Stock Certificates.
      Certificates for the Common Stock issued after the Record Time but prior to
      the
      Separation Time shall evidence one Right for each share of Common Stock
      represented thereby and shall have impressed on, printed on, written on or
      otherwise affixed to them the following legend: 

    

    Until
      the
      Separation Time (as defined in the Rights Agreement referred to below), this
      certificate also evidences and entitles the holder hereof to certain Rights
      as
      set forth in an Amended and Restated Rights Agreement, dated as of June 22,
      2006
      (as such may be amended from time to time, the “Rights Agreement”), between
      Wilshire Enterprises, Inc. (the “Company”) and Continental Stock Transfer &
Trust Company, as Rights Agent, 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 Rights
      Agreement, such Rights may be redeemed, may become exercisable for securities
      or
      assets of the Company or another entity, may be exchanged for shares of Common
      Stock or other securities or assets of the Company, may expire, may become
      void
      (if they are “Beneficially Owned” by an “Acquiring Person” or an Affiliate or
      Associate thereof, as such terms are defined in the Rights Agreement, or by
      any
      transferee of any of the foregoing) or may be evidenced by separate certificates
      and may no longer be evidenced by this certificate. 

    

    The
      Company will mail or arrange for the mailing of a copy of the Rights Agreement
      to the holder of this certificate without charge within five days after the
      receipt of a written request therefor. 

    

    Certificates
      representing shares of Common Stock that are issued and outstanding at the
      date
      hereof shall evidence one Right for each share of Common Stock evidenced thereby
      notwithstanding the absence of the foregoing legend. 

    

    2.3 Exercise
      of Rights; Separation of Rights.
      (a)
      Subject to Sections 3.1, 5.1 and 5.10 and subject to adjustment as herein set
      forth, each Right will entitle the holder thereof, after the Separation Time
      and
      prior to the Expiration Time, to purchase, for the Exercise Price, one
      one-hundredth (1/100) of a share of Preferred Stock. 

    

    (b) Until
      the
      Separation Time, (i) no Right may be exercised and (ii) each Right will be
      evidenced by the certificate for the associated share of Common Stock (together,
      in the case of certificates issued prior to the Record Time, with the letter
      mailed to the record holder thereof pursuant to Section 2.1) and will be
      transferable only together with, and will be transferred by a transfer (whether
      with or without such letter) of, such associated share of Common Stock.

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    

    (c) Subject
      to the terms and conditions hereof, after the Separation Time and prior to
      the
      Expiration Time, the Rights (i) may be exercised and (ii) may be transferred
      independently of shares of Common Stock. Promptly following the Separation
      Time,
      the Rights Agent will mail to each holder of record of Common Stock as of the
      Separation Time (other than any Person whose Rights have become void pursuant
      to
      Section 3.1(b)), at such holder’s address as shown on the books and records of
      the Company (the Company hereby agreeing to furnish copies of such records
      to
      the Rights Agent for this purpose), (x) a certificate (a “Rights Certificate”)
      in substantially the form of Exhibit A hereto, appropriately completed,
      representing the number of Rights held by such holder at the Separation Time
      and
      having such marks of identification or designation and such legends, summaries
      or endorsements printed thereon as the Company may deem appropriate and as
      shall
      not be inconsistent with the provisions of this Agreement, or as may be required
      to comply with any law or with any rule or regulation made pursuant thereto
      or
      with any rule or regulation of any national securities exchange or quotation
      system on which the Rights may from time to time be listed or traded, or to
      conform to usage, and (y) a disclosure statement describing the Rights.

    

    (d) Subject
      to the terms and conditions hereof, Rights may be exercised on any Business
      Day
      after the Separation Time and prior to the Expiration Time by submitting to
      the
      Rights Agent the Rights Certificate evidencing such Rights with an Election
      to
      Exercise (an “Election to Exercise”) substantially in the form attached to the
      Rights Certificate duly completed, accompanied by payment in cash, or by
      certified or official bank check or money order payable to the order of the
      Company, of a sum equal to the Exercise Price multiplied by the number of Rights
      being exercised and a sum sufficient to cover any transfer tax or charge which
      may be payable in respect of any transfer involved in the transfer or delivery
      of Rights Certificates or the issuance or delivery of certificates for shares
      or
      depositary receipts (or both) in a name other than that of the holder of the
      Rights being exercised. 

    

    (e) Upon
      receipt of a Rights Certificate, with an Election to Exercise accompanied by
      payment as set forth in Section 2.3(d), and subject to the terms and conditions
      hereof, the Rights Agent will thereupon promptly (i)(A) requisition from a
      transfer agent stock certificates evidencing such number of shares or other
      securities to be purchased (the Company hereby irrevocably authorizing its
      transfer agents to comply with all such requisitions) and (B) if the Company
      elects pursuant to Section 5.5 not to issue certificates representing fractional
      shares, requisition from the depositary selected by the Company depositary
      receipts representing the fractional shares to be purchased or requisition
      from
      the Company the amount of cash to be paid in lieu of fractional shares in
      accordance with Section 5.5 and (ii) after receipt of such certificates,
      depositary receipts and/or cash, deliver the same to or upon the order of the
      registered holder of such Rights Certificate, registered (in the case of
      certificates or depositary receipts) in such name or names as may be designated
      by such holder. 

    

    (f) In
      case
      the holder of any Rights shall exercise less than all the Rights evidenced
      by
      such holder’s Rights Certificate, a new Rights Certificate evidencing the Rights
      remaining unexercised will be issued by the Rights Agent to such holder or
      to
      such holder’s duly authorized assigns. 

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    

    (g) The
      Company covenants and agrees that it will (i) take all such action as may be
      necessary to ensure that all shares delivered upon exercise of Rights shall,
      at
      the time of delivery of the certificates for such shares (subject to payment
      of
      the Exercise Price), be duly and validly authorized, executed, issued and
      delivered and fully paid and nonassessable; (ii) take all such action as may
      be
      necessary to comply with any applicable requirements of the Securities Act
      of
      1933 or the Exchange Act, and the rules and regulations thereunder, and any
      other applicable law, rule or regulation, in connection with the issuance of
      any
      shares upon exercise of Rights; and (iii) pay when due and payable any and
      all
      federal and state transfer taxes and charges which may be payable in respect
      of
      the original issuance or delivery of the Rights Certificates or of any shares
      issued upon the exercise of Rights, provided, that the Company shall not be
      required to pay any transfer tax or charge which may be payable in respect
      of
      any transfer involved in the transfer or delivery of Rights Certificates or
      the
      issuance or delivery of certificates for shares in a name other than that of
      the
      holder of the Rights being transferred or exercised. 

    

    2.4 Adjustments
      to Exercise Price; Number of Rights.
      (a) In
      the event the Company shall at any time after the Record Time and prior to
      the
      Separation Time (i) declare or pay a dividend on Common Stock payable in Common
      Stock, (ii) subdivide the outstanding Common Stock or (iii) combine the
      outstanding Common Stock into a smaller number of shares of Common Stock, (x)
      the Exercise Price in effect after such adjustment will be equal to the Exercise
      Price in effect immediately prior to such adjustment divided by the number
      of
      shares of Common Stock (the “Expansion Factor”) that a holder of one share of
      Common Stock immediately prior to such dividend, subdivision or combination
      would hold thereafter as a result thereof and (y) each Right held prior to
      such
      adjustment will become that number of Rights equal to the Expansion Factor,
      and
      the adjusted number of Rights will be deemed to be distributed among the shares
      of Common Stock with respect to which the original Rights were associated (if
      they remain outstanding) and the shares issued in respect of such dividend,
      subdivision or combination, so that each such share of Common Stock will have
      exactly one Right associated with it. Each adjustment made pursuant to this
      paragraph shall be made as of the payment or effective date for the applicable
      dividend, subdivision or combination. 

    

    In
      the
      event the Company shall at any time after the Record Time and prior to the
      Separation Time issue any shares of Common Stock otherwise than in a transaction
      referred to in the preceding paragraph, each such share of Common Stock so
      issued shall automatically have one new Right associated with it, which Right
      shall be evidenced by the certificate representing such share. To the extent
      provided in Section 5.3, Rights shall be issued by the Company in respect of
      shares of Common Stock that are issued or sold by the Company after the
      Separation Time. 

    

    (b) In
      the
      event the Company shall at any time after the Record Time and prior to the
      Separation Time issue or distribute any securities or assets in respect of,
      in
      lieu of or in exchange for Common Stock (other than pursuant to a regular
      periodic cash dividend or a dividend paid solely in Common Stock) whether by
      dividend, in a reclassification or recapitalization (including any such
      transaction involving a merger, consolidation or share exchange), or otherwise,
      the Company shall make such adjustments, if any, in the Exercise Price, number
      of Rights and/or securities or other property purchasable upon exercise of
      Rights as the Board of Directors of the Company, in its sole discretion, may
      deem to be appropriate under the circumstances in order to adequately protect
      the interests of the holders of Rights generally, and the Company and the Rights
      Agent shall amend this Agreement as necessary to provide for such adjustments.
      

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    

    (c) Each
      adjustment to the Exercise Price made pursuant to this Section 2.4 shall be
      calculated to the nearest whole cent. Whenever an adjustment to the Exercise
      Price is made pursuant to this Section 2.4, the Company shall (i) promptly
      prepare a certificate setting forth such adjustment and a brief statement of
      the
      facts accounting for such adjustment and (ii) promptly file with the Rights
      Agent and with each transfer agent for the Common Stock a copy of such
      certificate. 

    

    (d) Rights
      Certificates shall represent the securities purchasable under the terms of
      this
      Agreement, including any adjustment or change in the securities purchasable
      upon
      exercise of the Rights, even though such certificates may continue to express
      the securities purchasable at the time of issuance of the initial Rights
      Certificates. 

    

    2.5 Date
      on Which Exercise is Effective.
      Each
      person in whose name any certificate for securities is issued upon the exercise
      of Rights shall for all purposes be deemed to have become the holder of record
      of the securities represented thereby on, and such certificate shall be dated,
      the date upon which the Rights Certificate evidencing such Rights was duly
      surrendered and payment of the Exercise Price for such Rights (and any
      applicable taxes and other governmental charges payable by the exercising holder
      hereunder) was made; provided, however, that if the date of such surrender
      and
      payment is a date upon which the stock transfer books of the Company are closed,
      such person shall be deemed to have become the record holder of such securities
      on, and such certificate shall be dated, the next succeeding Business Day on
      which the stock transfer books of the Company are open. 

    

    2.6 Execution,
      Authentication, Delivery and Dating of Rights Certificates.
      (a)  The Rights Certificates shall be executed on behalf of the
      Company by its Chairman of the Board, President, Treasurer or one of its Vice
      Presidents, under its corporate seal reproduced thereon attested by its
      Secretary or one of its Assistant Secretaries. The signature of any of these
      officers on the Rights Certificates may be manual or facsimile. 

    

    Rights
      Certificates bearing the manual or facsimile signatures of individuals who
      were
      at any time the proper officers of the Company shall bind the Company,
      notwithstanding that such individuals or any of them have ceased to hold such
      offices prior to the countersignature and delivery of such Rights Certificates.
      

    

    Promptly
      after the Separation Time, the Company will notify the Rights Agent of such
      Separation Time and will deliver Rights Certificates executed by the Company
      to
      the Rights Agent for countersignature, and, subject to Section 3.1(b), the
      Rights Agent shall manually countersign and deliver such Rights Certificates
      to
      the holders of the Rights pursuant to Section 2.3(c) hereof. No Rights
      Certificate shall be valid for any purpose unless manually countersigned by
      the
      Rights Agent. 

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    

    (b) Each
      Rights Certificate shall be dated the date of countersignature thereof.

    

    2.7 Registration,
      Registration of Transfer and Exchange.
      (a)
      After the Separation Time, the Company will cause to be kept a register (the
      “Rights Register”) in which, subject to such reasonable regulations as it may
      prescribe, the Company will provide for the registration and transfer of Rights.
      The Rights Agent is hereby appointed “Rights Registrar” for the purpose of
      maintaining the Rights Register for the Company and registering Rights and
      transfers of Rights after the Separation Time as herein provided. In the event
      that the Rights Agent shall cease to be the Rights Registrar, the Rights Agent
      will have the right to examine the Rights Register at all reasonable times
      after
      the Separation Time. 

    

    After
      the
      Separation Time and prior to the Expiration Time, upon surrender for
      registration of transfer or exchange of any Rights Certificate, and subject to
      the provisions of Section 2.7(c) and (d), the Company will execute, and the
      Rights Agent will countersign and deliver, in the name of the holder or the
      designated transferee or transferees, as required pursuant to the holder’s
      instructions, one or more new Rights Certificates evidencing the same aggregate
      number of Rights as did the Rights Certificate so surrendered. 

    

    (b) Except
      as
      otherwise provided in Section 3.1(b), all Rights issued upon any registration
      of
      transfer or exchange of Rights Certificates shall be the valid obligations
      of
      the Company, and such Rights shall be entitled to the same benefits under this
      Agreement as the Rights surrendered upon such registration of transfer or
      exchange. 

    

    (c) Every
      Rights Certificate surrendered for registration of transfer or exchange shall
      be
      duly endorsed, or be accompanied by a written instrument of transfer in form
      satisfactory to the Company or the Rights Agent, as the case may be, duly
      executed by the holder thereof or such holder’s attorney duly authorized in
      writing. As a condition to the issuance of any new Rights Certificate under
      this
      Section 2.7, the Company may require the payment of a sum sufficient to cover
      any tax or other governmental charge that may be imposed in relation thereto.
      

    

    (d) The
      Company shall not be required to register the transfer or exchange of any Rights
      after such Rights have become void under Section 3.1(b), been exchanged under
      Section 3.1(c) or been redeemed under Section 5.1. 

    

    2.8 Mutilated,
      Destroyed, Lost and Stolen Rights Certificates.
      (a) If
      any mutilated Rights Certificate is surrendered to the Rights Agent prior to
      the
      Expiration Time, then, subject to Sections 3.1(b), 3.1(c) and 5.1, the Company
      shall execute and the Rights Agent shall countersign and deliver in exchange
      therefor a new Rights Certificate evidencing the same number of Rights as did
      the Rights Certificate so surrendered. 

    

    (b) If
      there
      shall be delivered to the Company and the Rights Agent prior to the Expiration
      Time (i) evidence to their satisfaction of the destruction, loss or theft of
      any
      Rights Certificate and (ii) such security or indemnity as may be required by
      them to save each of them and any of their agents harmless, then, subject to
      Sections 3.1(b), 3.1(c) and 5.1 and in the absence of notice to the Company
      or
      the Rights Agent that such Rights Certificate has been acquired by a bona fide
      purchaser, the Company shall execute and upon its request the Rights Agent
      shall
      countersign and deliver, in lieu of any such destroyed, lost or stolen Rights
      Certificate, a new Rights Certificate evidencing the same number of Rights
      as
      did the Rights Certificate so destroyed, lost or stolen. 

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    

    (c) As
      a
      condition to the issuance of any new Rights Certificate under this Section
      2.8,
      the Company may require the payment of a sum sufficient to cover any tax or
      other governmental charge that may be imposed in relation thereto and any other
      expenses (including the fees and expenses of the Rights Agent) connected
      therewith. 

    

    (d) Every
      new
      Rights Certificate issued pursuant to this Section 2.8 in lieu of any mutilated,
      destroyed, lost or stolen Rights Certificate shall evidence an original
      additional contractual obligation of the Company, whether or not the mutilated,
      destroyed, lost or stolen Rights Certificate shall be at any time enforceable
      by
      anyone, and, subject to Section 3.1(b), shall be entitled to all the benefits
      of
      this Agreement equally and proportionately with any and all other Rights duly
      issued hereunder. 

    

    2.9 Persons
      Deemed Owners.
      Prior
      to due presentment of a Rights Certificate (or, prior to the Separation Time,
      the associated Common Stock certificate) for registration of transfer, the
      Company, the Rights Agent and any agent of the Company or the Rights Agent
      may
      deem and treat the person in whose name such Rights Certificate (or, prior
      to
      the Separation Time, such Common Stock certificate) is registered as the
      absolute owner thereof and of the Rights evidenced thereby for all purposes
      whatsoever, including the payment of the Redemption Price and neither the
      Company nor the Rights Agent shall be affected by any notice to the contrary.
      As
      used in this Agreement, unless the context otherwise requires, the term “holder”
of any Rights shall mean the registered holder of such Rights (or, prior to
      the
      Separation Time, the associated shares of Common Stock). 

    

    2.10 Delivery
      and Cancellation of Certificates.
      All
      Rights Certificates surrendered upon exercise or for registration of transfer
      or
      exchange shall, if surrendered to any person other than the Rights Agent, be
      delivered to the Rights Agent and, in any case, shall be promptly canceled
      by
      the Rights Agent. The Company may at any time deliver to the Rights Agent for
      cancellation any Rights Certificates previously countersigned and delivered
      hereunder which the Company may have acquired in any manner whatsoever, and
      all
      Rights Certificates so delivered shall be promptly canceled by the Rights Agent.
      No Rights Certificates shall be countersigned in lieu of or in exchange for
      any
      Rights Certificates canceled as provided in this Section 2.10, except as
      expressly permitted by this Agreement. The Rights Agent shall destroy all
      canceled Rights Certificates and deliver a certificate of destruction to the
      Company. 

    

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

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    

    (a) prior
      to
      the Separation Time, each Right will be transferable only together with, and
      will be transferred by a transfer of, the associated share of Common Stock;
      

    

    (b) after
      the
      Separation Time, the Rights Certificates will be transferable only on the Rights
      Register as provided herein; 

    

    (c) prior
      to
      due presentment of a Rights Certificate (or, prior to the Separation Time,
      the
      associated Common Stock certificate) for registration of transfer, the Company,
      the Rights Agent and any agent of the Company or the Rights Agent may deem
      and
      treat the person in whose name the Rights Certificate (or, prior to the
      Separation Time, the associated Common Stock certificate) is registered as
      the
      absolute owner thereof and of the Rights evidenced thereby for all purposes
      whatsoever, and neither the Company nor the Rights Agent shall be affected
      by
      any notice to the contrary; 

    

    (d) Rights
      Beneficially Owned by certain Persons will, under the circumstances set forth
      in
      Section 3.1(b), become void; and 

    

    (e) this
      Agreement may be supplemented or amended from time to time pursuant to Section
      2.4(b) or 5.4 hereof. 

    

    ARTICLE
      III

    ADJUSTMENTS
      TO THE RIGHTS IN

    THE
      EVENT OF CERTAIN TRANSACTIONS

    

    3.1 Flip-in.
      (a) In
      the event that prior to the Expiration Time a Flip-in Date shall occur, except
      as provided in this Section 3.1, each Right shall constitute the right to
      purchase from the Company, upon exercise thereof in accordance with the terms
      hereof (but subject to Section 5.10), that number of shares of Common Stock
      having an aggregate Market Price on the Flip-in Date equal to twice the Exercise
      Price for an amount in cash equal to the Exercise Price (such right to be
      appropriately adjusted in order to protect the interests of the holders of
      Rights generally in the event that on or after such Flip-in Date an event of
      a
      type analogous to any of the events described in Section 2.4(a) or (b) shall
      have occurred with respect to the Common Stock). 

    

    (b) Notwithstanding
      the foregoing, any Rights that are or were Beneficially Owned on or after the
      Flip-in Date by an Acquiring Person or an Affiliate or Associate thereof or
      by
      any transferee, direct or indirect, of any of the foregoing shall become void
      and any holder of such Rights (including transferees) shall thereafter have
      no
      right to exercise or transfer such Rights under any provision of this Agreement.
      If any Rights Certificate is presented for assignment or exercise and the Person
      presenting the same will not complete the certification set forth at the end
      of
      the form of assignment or notice of election to exercise and provide such
      additional evidence of the identity of the Beneficial Owner and its Affiliates
      and Associates (or former Beneficial Owners and their Affiliates and Associates)
      as the Company shall reasonably request, then the Company shall be entitled
      conclusively to deem the Beneficial Owner thereof to be an Acquiring Person
      or
      an Affiliate or Associate thereof or a transferee of any of the foregoing and
      accordingly will deem the Rights evidenced thereby to be void and not
      transferable or exercisable. 

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    

    (c) The
      Board
      of Directors of the Company may, at its option, at any time after a Flip-in
      Date
      and prior to the time that an Acquiring Person becomes the Beneficial Owner
      of
      more than 50% of the outstanding shares of Common Stock, elect to exchange
      all
      (but not less than all) the then outstanding Rights (which shall not include
      Rights that have become void pursuant to the provisions of Section 3.1(b))
      for
      shares of Common Stock at an exchange ratio of one share of Common Stock per
      Right, appropriately adjusted in order to protect the interests of holders
      of
      Rights generally in the event that after the Separation Time an event of a
      type
      analogous to any of the events described in Section 2.4(a) or (b) shall have
      occurred with respect to the Common Stock (such exchange ratio, as adjusted
      from
      time to time, being hereinafter referred to as the “Exchange Ratio”).

    

    Immediately
      upon the action of the Board of Directors of the Company electing to exchange
      the Rights, without any further action and without any notice, the right to
      exercise the Rights will terminate and each Right (other than Rights that have
      become void pursuant to Section 3.1(b)) will thereafter represent only the
      right
      to receive a number of shares of Common Stock equal to the Exchange Ratio.
      Promptly after the action of the Board of Directors electing to exchange the
      Rights, the Company shall give notice thereof (specifying the steps to be taken
      to receive shares of Common Stock in exchange for Rights) to the Rights Agent
      and the holders of the Rights (other than Rights that have become void pursuant
      to Section 3.1(b)) outstanding immediately prior thereto by mailing such notice
      in accordance with Section 5.9. 

    

    Each
      Person in whose name any certificate for shares is issued upon the exchange
      of
      Rights pursuant to this Section 3.1(c) or Section 3.1(d) shall for all purposes
      be deemed to have become the holder of record of the shares represented thereby
      on, and such certificate shall be dated, the date upon which the Rights
      Certificate evidencing such Rights was duly surrendered and payment of any
      applicable taxes and other governmental charges payable by the holder was made;
      provided, however, that if the date of such surrender and payment is a date
      upon
      which the stock transfer books of the Company are closed, such Person shall
      be
      deemed to have become the record holder of such shares on, and such certificate
      shall be dated, the next succeeding Business Day on which the stock transfer
      books of the Company are open. 

    

    (d) Whenever
      the Company shall become obligated under Section 3.1(a) or (c) to issue shares
      of Common Stock upon exercise of or in exchange for Rights, the Company, at
      its
      option, may substitute therefor shares of Preferred Stock, at a ratio of one
      one-hundredth (1/100) of a share of Preferred Stock for each share of Common
      Stock so issuable. 

    

    (e) In
      the
      event that there shall not be sufficient treasury shares or authorized but
      unissued shares of Common Stock or Preferred Stock of the Company to permit
      the
      exercise or exchange in full of the Rights in accordance with Section 3.1(a)
      or
      (c), and the Company elects not to, or is otherwise unable to, make the exchange
      referred to in Section 3.1(d), the Company shall either (i) call a meeting
      of
      stockholders seeking approval to cause sufficient additional shares to be
      authorized (provided, that if such approval is not obtained the Company will
      take the action specified in clause (ii) of this sentence) or (ii) take such
      action as shall be necessary to ensure and provide, to the extent permitted
      by
      applicable law and any agreements or instruments in effect on the Stock
      Acquisition Date to which it is a party, that each Right shall thereafter
      constitute the right to receive, (x) at the Company’s option, either (A) in
      return for the Exercise Price, debt or equity securities or other assets (or
      a
      combination thereof) having a fair value equal to twice the Exercise Price,
      or
      (B) without payment of consideration (except as otherwise required by applicable
      law), debt or equity securities or other assets (or a combination thereof)
      having a fair value equal to the Exercise Price, or (y) if the Board of
      Directors of the Company elects to exchange the Rights in accordance with
      Section 3.1(c), debt or equity securities or other assets (or a combination
      thereof) having a fair value equal to the product of the Market Price of a
      share
      of Common Stock on the Flip-in Date times the Exchange Ratio in effect on the
      Flip-in Date, where in any case set forth in (x) or (y) above the fair value
      of
      such debt or equity securities or other assets shall be as determined in good
      faith by the Board of Directors of the Company, after consultation with a
      nationally recognized investment banking firm. 

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    

    (f) The
      Company agrees that after the Flip-in Date and prior to the Expiration Time,
      it
      shall not, unless the Rights are exchanged pursuant to this Section 3.1 or
      redeemed pursuant to Section 5.1, take any action if at the time such action
      is
      taken it is reasonably foreseeable that such action will diminish substantially
      or eliminate the benefits intended to be afforded by the Rights.

    

    3.2 Flip-over.
      (a)
      Prior to the Expiration Time, unless the Rights have been redeemed pursuant
      to
      Section 5.1 hereof in connection therewith, the Company shall not enter into
      any
      agreement with respect to, consummate or permit to occur any Flip-over
      Transaction or Event unless and until it shall have entered into a supplemental
      agreement with the Flip-over Entity, for the benefit of the holders of the
      Rights, providing that, upon consummation or occurrence of the Flip-over
      Transaction or Event (i) each Right shall thereafter constitute the right to
      purchase from the Flip-over Entity, upon exercise thereof in accordance with
      the
      terms hereof, that number of shares of Flip-over Stock of the Flip-over Entity
      having an aggregate Market Price on the date of consummation or occurrence
      of
      such Flip-over Transaction or Event equal to twice the Exercise Price for an
      amount in cash equal to the Exercise Price (such right to be appropriately
      adjusted in order to protect the interests of the holders of Rights generally
      in
      the event that after such date of consummation or occurrence an event of a
      type
      analogous to any of the events described in Section 2.4(a) or (b) shall have
      occurred with respect to the Flip-over Stock) and (ii) the Flip- over Entity
      shall thereafter be liable for, and shall assume, by virtue of such Flip-over
      Transaction or Event and such supplemental agreement, all the obligations and
      duties of the Company pursuant to this Agreement. The provisions of this Section
      3.2 shall apply with equal force to successive Flip-over Transactions or Events.
      

    

    (b) Prior
      to
      the Expiration Time, unless the Rights will be redeemed pursuant to Section
      5.1
      hereof in connection therewith, the Company shall not enter into any agreement
      with respect to, consummate or permit to occur any Flip-over Transaction or
      Event if at the time thereof there are any rights, warrants or securities
      outstanding or any other arrangements, agreements or instruments that would
      eliminate or otherwise diminish in any material respect the benefits intended
      to
      be afforded by this Rights Agreement to the holders of Rights upon consummation
      of such transaction. 

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      IV

    THE
      RIGHTS AGENT

    

    4.1 General.
      (a) The
      Company hereby appoints the Rights Agent to act as agent for the Company in
      accordance with the terms and conditions hereof, and the Rights Agent hereby
      accepts such appointment. The Company agrees to pay to the Rights Agent
      reasonable compensation for all services rendered by it hereunder and, from
      time
      to time and on demand of the Rights Agent, its reasonable expenses and counsel
      fees and other disbursements incurred in the administration and execution of
      this Agreement and the exercise and performance of its duties hereunder. The
      Company also agrees to indemnify the Rights Agent for, and to hold it harmless
      against, any loss, liability or expense incurred without negligence, bad faith
      or willful misconduct on the part of the Rights Agent, for anything done or
      omitted to be done by the Rights Agent in connection with the acceptance and
      administration of this Agreement, including the costs and expenses of defending
      against any claim of liability. 

    

    (b) The
      Rights Agent shall be protected and shall incur no liability for or in respect
      of any action taken, suffered to be taken or not taken by it in connection
      with
      its administration of this Agreement in reliance upon any certificate for
      securities purchasable upon exercise of Rights, Rights Certificate, certificate
      for other securities of the Company, instrument of assignment or transfer,
      power
      of attorney, endorsement, affidavit, letter, notice, direction, consent,
      certificate, statement, or other paper or document believed by it to be genuine
      and to be signed, executed and, where necessary, verified or acknowledged,
      by
      the proper person or persons. 

    

    4.2 Merger
      or Consolidation or Change of Name of Rights Agent.
      (a) Any
      corporation into which the Rights Agent or any successor Rights Agent may be
      merged or with which it may be consolidated, or any corporation resulting from
      any merger or consolidation to which the Rights Agent or any successor Rights
      Agent is a party, or any corporation succeeding to the shareholder services
      business of the Rights Agent or any successor Rights Agent, will be the
      successor to the Rights Agent under this Agreement without the execution or
      filing of any paper or any further act on the part of any of the parties hereto,
      provided, that such corporation would be eligible for appointment as a successor
      Rights Agent under the provisions of Section 4.4 hereof. In case at the time
      such successor Rights Agent succeeds to the agency created by this Agreement
      any
      of the Rights Certificates have been countersigned but not delivered, any such
      successor Rights Agent may adopt the countersignature of the predecessor Rights
      Agent and deliver such Rights Certificates so countersigned; and in case at
      that
      time any of the Rights Certificates have not been countersigned, any successor
      Rights Agent may countersign such Rights Certificates either in the name of
      the
      predecessor Rights Agent or in the name of the successor Rights Agent; and
      in
      all such cases such Rights Certificates will have the full force provided in
      the
      Rights Certificates and in this Agreement. 

    

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

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    

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

    

    (a) The
      Rights Agent may consult with legal counsel (who may be legal counsel for the
      Company), and the opinion of such counsel will be full and complete
      authorization and protection to the Rights Agent as to any action taken or
      not
      taken by it in good faith and in accordance with such opinion. 

    

    (b) Whenever
      in the performance of its duties under this Agreement the Rights Agent deems
      it
      necessary or desirable that any fact or matter be proved or established by
      the
      Company prior to taking or suffering to be taken any action hereunder, such
      fact
      or matter (unless other evidence in respect thereof be herein specifically
      prescribed) may be deemed to be conclusively proved and established by a
      certificate signed by a person believed by the Rights Agent to be the Chairman
      of the Board, the President or any Vice President and by the Treasurer or any
      Assistant Treasurer or the Secretary or any Assistant Secretary of the Company
      and delivered to the Rights Agent; and such certificate will be full
      authorization to the Rights Agent for any action taken or suffered to be taken
      in good faith by it under the provisions of this Agreement in reliance upon
      such
      certificate. 

    

    (c) The
      Rights Agent will be liable hereunder only for its own negligence, bad faith
      or
      willful misconduct. 

    

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

    

    (e) The
      Rights Agent will not be under any responsibility in respect of the validity
      of
      this Agreement 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 certificate for securities purchasable
      upon
      exercise of Rights or Rights Certificate (except its countersignature thereof);
      nor will it be responsible for any breach by the Company of any covenant or
      condition contained in this Agreement or in any Rights Certificate; nor will
      it
      be responsible for any change in the exercisability of the Rights (including
      the
      Rights becoming void pursuant to Section 3.1(b) hereof) or any adjustment
      required under the provisions of Section 2.4, 3.1 or 3.2 hereof or responsible
      for the manner, method or amount of any such adjustment or the ascertaining
      of
      the existence of facts that would require any such adjustment (except with
      respect to the exercise of Rights after receipt of the certificate contemplated
      by Section 2.4 describing any such adjustment); nor will it by any act hereunder
      be deemed to make any representation or warranty as to the authorization or
      reservation of any securities purchasable upon exercise of Rights or any Rights
      or as to whether any securities purchasable upon exercise of Rights will, when
      issued, be duly and validly authorized, executed, issued and delivered and
      fully
      paid and nonassessable. 

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    

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

    

    (g) The
      Rights Agent is hereby authorized and directed to accept instructions with
      respect to the performance of its duties hereunder from any person believed
      by
      the Rights Agent to be the Chairman of the Board, the President, any Vice
      President, the Secretary or any Assistant Secretary or the Treasurer or any
      Assistant Treasurer of the Company, and to apply to such persons for advice
      or
      instructions in connection with its duties, and it shall not be liable for
      any
      action taken or suffered by it in good faith in accordance with instructions
      of
      any such person. 

    

    (h) The
      Rights Agent and any stockholder, director, officer or employee of the Rights
      Agent may buy, sell or deal in Common Stock, Rights or other securities of
      the
      Company or become pecuniarily interested in any transaction in which the Company
      may be interested, or contract with or lend money to the Company or otherwise
      act as fully and freely as though it were not Rights Agent under this Agreement.
      Nothing herein shall preclude the Rights Agent from acting in any other capacity
      for the Company or for any other legal entity. 

    

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

    

    4.4 Change
      of Rights Agent.
      The
      Rights Agent may resign and be discharged from its duties under this Agreement
      upon 90 days’ notice (or such lesser notice as is acceptable to the Company) in
      writing mailed to the Company and to each transfer agent of Common Stock by
      registered or certified mail, and, following the Separation Time, to the holders
      of the Rights in accordance with Section 5.9. The Company may remove the Rights
      Agent upon 30 days’ notice in writing, mailed to the Rights Agent and to each
      transfer agent of the Common Stock by registered or certified mail, and to
      the
      holders of the Rights in accordance with Section 5.9. If the Rights Agent should
      resign or be removed or otherwise become incapable of acting, 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 such removal or after it has been
      notified in writing of such resignation or incapacity by the resigning or
      incapacitated Rights Agent or by the holder of any Rights (which holder shall,
      with such notice, submit such holder’s Rights Certificate for inspection by the
      Company), then the holder of any Rights may apply to any court of competent
      jurisdiction for the appointment of a new Rights Agent. Any successor Rights
      Agent, whether appointed by the Company or by such a court, shall be a
      corporation organized and doing business under the laws of the United States
      or
      of any State of the United States, in good standing, which is authorized under
      such laws to exercise the powers of the Rights Agent contemplated by this
      Agreement and is subject to supervision or examination by federal or state
      authority and which has at the time of its appointment as Rights Agent a
      combined capital and surplus of at least $50,000,000. 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; but the predecessor Rights Agent shall deliver and transfer
      to the successor Rights Agent any property at the time held by it hereunder,
      and
      execute and deliver any further assurance, conveyance, act or deed necessary
      for
      the purpose. Not later than the effective date of any such appointment, the
      Company will file notice thereof in writing with the predecessor Rights Agent
      and each transfer agent of the Common Stock, and, following the Separation
      Time,
      mail a notice thereof in writing to the holders of the Rights. Failure to give
      any notice provided for in this Section 4.4, however, or any defect therein,
      shall not affect the legality or validity of the resignation or removal of
      the
      Rights Agent or the appointment of the successor Rights Agent, as the case
      may
      be. No resignation or removal of the Rights Agent shall be effective until
      a
      successor Rights Agent is appointed in accordance with this Section 4.4.

    
      
        
        

      

      
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    ARTICLE
      V

    MISCELLANEOUS

    

    5.1 Redemption.
      (a) The
      Board of Directors of the Company may, at its option, at any time prior to
      the
      Flip-in Date, elect to redeem all (but not less than all) the then outstanding
      Rights at the Redemption Price and the Company, at its option, may pay the
      Redemption Price either in cash or shares of Common Stock or other securities
      of
      the Company deemed by the Board of Directors, in the exercise of its sole
      discretion, to be at least equivalent in value to the Redemption Price.

    

    (b) Immediately
      upon the action of the Board of Directors of the Company electing to redeem
      the
      Rights (or, if the resolution of the Board of Directors electing to redeem
      the
      Rights states that the redemption will not be effective until the occurrence
      of
      a specified future time or event, upon the occurrence of such future time or
      event), without any further action and without any notice, the right to exercise
      the Rights will terminate and each Right will thereafter represent only the
      right to receive the Redemption Price in cash or securities, as determined
      by
      the Board of Directors. Promptly after the Rights are redeemed, the Company
      shall give notice of such redemption to the Rights Agent and the holders of
      the
      then outstanding Rights by mailing such notice in accordance with Section 5.9.
      

    

    5.2 Expiration.
      The
      Rights and this Agreement shall expire at the Expiration Time and no Person
      shall have any rights pursuant to this Agreement or any Right after the
      Expiration Time, except, if the Rights are exchanged or redeemed, as provided
      in
      Section 3.1 or 5.1 hereof. 

    

    5.3 Issuance
      of New Rights Certificates.
      Notwithstanding any of the provisions of this Agreement or of the Rights to
      the
      contrary, the Company may, at its option, issue new Rights Certificates
      evidencing Rights in such form as may be approved by its Board of Directors
      to
      reflect any adjustment or change in the number or kind or class of shares of
      stock purchasable upon exercise of Rights made in accordance with the provisions
      of this Agreement. In addition, in connection with the issuance or sale of
      shares of Common Stock by the Company following the Separation Time and prior
      to
      the Expiration Time pursuant to the terms of securities convertible or
      redeemable into shares of Common Stock or to options, in each case issued or
      granted prior to, and outstanding at, the Separation Time, the Company shall
      issue to the holders of such shares of Common Stock, Rights Certificates
      representing the appropriate number of Rights in connection with the issuance
      or
      sale of such shares of Common Stock; provided, however, in each case, (i) no
      such Rights Certificate shall be issued, if, and to the extent that, the Company
      shall be advised by counsel that such issuance would create a significant risk
      of material adverse tax consequences to the Company or to the Person to whom
      such Rights Certificates would be issued, (ii) no such Rights Certificates
      shall
      be issued if, and to the extent that, appropriate adjustment shall have
      otherwise been made in lieu of the issuance thereof, and (iii) the Company
      shall
      have no obligation to distribute Rights Certificates to any Acquiring Person
      or
      Affiliate or Associate of an Acquiring Person or any transferee of any of the
      foregoing. 

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

    

    5.4 Supplements
      and Amendments.
      The
      Company and the Rights Agent may from time to time supplement or amend this
      Agreement without the approval of any holders of Rights (i) prior to the Flip-in
      Date, in any respect and (ii) after the Flip-in Date, to make any changes that
      the Company may deem necessary or desirable and which shall not materially
      adversely affect the interests of the holders of Rights generally or in order
      to
      cure any ambiguity or to correct or supplement any provision contained herein
      which may be inconsistent with any other provisions herein or otherwise
      defective. The Rights Agent will duly execute and deliver any supplement or
      amendment hereto requested by the Company which satisfies the terms of the
      preceding sentence. 

    

    5.5 Fractional
      Shares.
      If the
      Company elects not to issue certificates representing fractional shares upon
      exercise or redemption of Rights, the Company shall, in lieu thereof, in the
      sole discretion of the Board of Directors, either (a) evidence such fractional
      shares by depositary receipts issued pursuant to an appropriate agreement
      between the Company and a depositary selected by it, providing that each holder
      of a depositary receipt shall have all of the rights, privileges and preferences
      to which such holder would be entitled as a beneficial owner of such fractional
      share, or (b) sell such shares on behalf of the holders of Rights and pay to
      the
      registered holder of such Rights the appropriate fraction of the price per
      share
      received upon such sale. 

    

    5.6 Rights
      of Action.
      Subject
      to the terms of this Agreement (including Section 3.1(b)), rights of action
      in
      respect of this Agreement, other than rights of action vested solely in the
      Rights Agent, are vested in the respective holders of the Rights; and any holder
      of any Rights, without the consent of the Rights Agent or of the holder of
      any
      other Rights, 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, or
      otherwise act in respect of, such holder’s right to exercise such holder’s
      Rights in the manner provided in such holder’s Rights Certificate and in this
      Agreement. Without limiting the foregoing or any remedies available to the
      holders of Rights, it is specifically acknowledged that the holders of Rights
      would not have an adequate remedy at law for any breach of this Agreement and
      will be entitled to specific performance of the obligations under, and
      injunctive relief against actual or threatened violations of, the obligations
      of
      any Person subject to this Agreement. 

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

    

    5.7 Holder
      of Rights Not Deemed a Stockholder.
      No
      holder, as such, of any Rights shall be entitled to vote, receive dividends
      or
      be deemed for any purpose the holder of shares or any other securities which
      may
      at any time be issuable on the exercise of such Rights, nor shall anything
      contained herein or in any Rights Certificate be construed to confer upon the
      holder of any Rights, as such, any of the rights of a stockholder of the Company
      or any right to vote for the election of directors or upon any matter submitted
      to stockholders at any meeting thereof, or to give or withhold consent to any
      corporate action, or to receive notice of meetings or other actions affecting
      stockholders (except as provided in Section 5.8 hereof), or to receive dividends
      or subscription rights, or otherwise, until such Rights shall have been
      exercised or exchanged in accordance with the provisions hereof. 

    

    5.8 Notice
      of Proposed Actions.
      In case
      the Company shall propose after the Separation Time and prior to the Expiration
      Time (i) to effect or permit a Flip-over Transaction or Event or (ii) to effect
      the liquidation, dissolution or winding up of the Company, then, in each such
      case, the Company shall give to each holder of a Right, in accordance with
      Section 5.9 hereof, a notice of such proposed action, which shall specify the
      date on which such Flip-over Transaction or Event, liquidation, dissolution,
      or
      winding up is to take place, and such notice shall be so given at least twenty
      (20) Business Days prior to the date of the taking of such proposed action.
      

    

    5.9 Notices.
      Notices
      or demands authorized or required by this Agreement to be given or made by
      the
      Rights Agent or by the holder of any Rights to or on the Company shall be
      sufficiently given or made if delivered or sent by first-class mail, postage
      prepaid, addressed (until another address is filed in writing with the Rights
      Agent) as follows: 

    

    Wilshire
      Enterprises, Inc. 

    1
      Gateway
      Center

    Newark,
      New Jersey 07102

    

    Attention:
      S. Wilzig Izak 

    

    with
      a
      copy to: 

    

    Peter
      H.
      Ehrenberg, Esq.

    Lowenstein
      Sandler PC

    65
      Livingston Avenue

    Roseland,
      New Jersey 07068

    

    Any
      notice or demand authorized or required by this Agreement to be given or made
      by
      the Company or by the holder of any Rights to or on the Rights Agent shall
      be
      sufficiently given or made if delivered or sent by first-class mail, postage
      prepaid, addressed (until another address is filed in writing with the Company)
      as follows: 

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

     

    Continental
      Stock Transfer & Trust Company

    17
      Battery Place, 8th Floor

    New
      York,
      New York 10004 

    

    Attention:
      Chairman

    

    Notices
      or demands authorized or required by this Agreement to be given or made by
      the
      Company or the Rights Agent to or on the holder of any Rights shall be
      sufficiently given or made if delivered or sent by first-class mail, postage
      prepaid, addressed to such holder at the address of such holder as it appears
      upon the registry books of the Rights Agent or, prior to the Separation Time,
      on
      the registry books of the transfer agent for the Common Stock. Any notice which
      is mailed in the manner herein provided shall be deemed given, whether or not
      the holder receives the notice. 

    

    5.10 Suspension
      of Exercisability.
      To the
      extent that the Company determines in good faith that some action will or need
      be taken pursuant to Section 3.1 or to comply with federal or state securities
      laws, the Company may suspend the exercisability of the Rights for a reasonable
      period in order to take such action or comply with such laws. In the event
      of
      any such suspension, the Company shall issue as promptly as practicable a public
      announcement stating that the exercisability or exchangeability of the Rights
      has been temporarily suspended. Notice thereof pursuant to Section 5.9 shall
      not
      be required. Failure to give a notice pursuant to the provisions of this
      Agreement shall not affect the validity of any action taken hereunder.

    

    5.11 Costs
      of Enforcement.
      The
      Company agrees that if the Company or any other Person the securities of which
      are purchasable upon exercise of Rights fails to fulfill any of its obligations
      pursuant to this Agreement, then the Company or such Person will reimburse
      the
      holder of any Rights for the costs and expenses (including legal fees) incurred
      by such holder in actions to enforce such holder’s rights pursuant to any Rights
      or this Agreement. 

    

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

    

    5.13 Benefits
      of this Agreement.
      Nothing
      in this Agreement shall be construed to give to any Person other than the
      Company, the Rights Agent and the holders of the Rights any legal or equitable
      right, remedy or claim under this Agreement; but this Agreement shall be for
      the
      sole and exclusive benefit of the Company, the Rights Agent and the holders
      of
      the Rights. 

    

    5.14 Determination
      and Actions by the Board of Directors, etc.
      The
      Board of Directors of the Company shall have the exclusive power and authority
      to administer this Agreement and to exercise all rights and powers specifically
      granted to the Board or to the Company, or as may be necessary or advisable
      in
      the administration of this Agreement, including, without limitation, the right
      and power to (i) interpret the provisions of this Agreement and (ii) make all
      determinations deemed necessary or advisable for the administration of this
      Agreement. All such actions, calculations, interpretations and determinations
      which are done or made by the Board in good faith shall be final, conclusive
      and
      binding on the Company, the Rights Agent, the holders of the Rights and all
      other parties. 

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

    

    5.15 Descriptive
      Headings.
      Descriptive headings appear herein for convenience only and shall not control
      or
      affect the meaning or construction of any of the provisions hereof.

    

    5.16 Governing
      Law.
      THIS
      AGREEMENT AND EACH RIGHT ISSUED HEREUNDER SHALL BE DEEMED TO BE A CONTRACT
      MADE
      UNDER THE LAWS OF THE STATE OF DELAWARE AND FOR ALL PURPOSES SHALL BE GOVERNED
      BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF SUCH STATE APPLICABLE TO
      CONTRACTS TO BE MADE AND PERFORMED ENTIRELY WITHIN SUCH STATE. 

    

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

    

    5.18 Severability.
      If any
      term or provision hereof or the application thereof to any circumstance shall,
      in any jurisdiction and to any extent, be invalid or unenforceable, such term
      or
      provision shall be ineffective as to such jurisdiction to the extent of such
      invalidity or unenforceability without invalidating or rendering unenforceable
      the remaining terms and provisions hereof or the application of such term or
      provision to circumstances other than those as to which it is held invalid
      or
      unenforceable. 

    

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

     

    
      	 	 	 
	 	
              WILSHIRE
                ENTERPRISES, INC.

            
	 
 	 
 	 
 
	 	By:  	/s/ 
S.
              Wilzig Izak     
	 	
              

              Name:
                S. Wilzig Izak

              Title:
                Chairman & CEO

            
	 	 

    

    

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	CONTINENTAL
              STOCK TRANSFER & TRUST COMPANY
	 
 	 
 	 
 
	 	By:  	/s/ R.
              Bernhammer    
	 	
              

              Name:
                R. Bernhammer 

              Title:
                Vice President

            
	 	 

      
        
          
          

        

        
          -24-

          
            

          

        

        
          
          

        

      

    

     

    EXHIBIT
      A

    

    [Form
      of
      Rights Certificate]

    

    
      	Certificate No. W-	
                _______
                Rights

            

    

     

    THE
      RIGHTS ARE SUBJECT TO REDEMPTION OR MANDATORY EXCHANGE, AT THE OPTION OF THE
      COMPANY, ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. RIGHTS BENEFICIALLY
      OWNED BY ACQUIRING PERSONS OR AFFILIATES OR ASSOCIATES THEREOF (AS SUCH TERMS
      ARE DEFINED IN THE RIGHTS AGREEMENT) OR TRANSFEREES OF ANY OF THE FOREGOING
      WILL
      BE VOID.

    

    Rights
      Certificate

    

    WILSHIRE
      ENTERPRISES, INC.

    

    This
      certifies that ____________________, or registered assigns, is the registered
      holder of the number of Rights set forth above, each of which entitles the
      registered holder thereof, subject to the terms, provisions and conditions
      of
      the Amended and Restated Stockholder Protection Rights Agreement, dated as
      of
      June 22, 2006 (as amended from time to time, the “Rights Agreement”), between
      Wilshire Enterprises, Inc., a Delaware corporation (the “Company”), and
      Continental Stock Transfer & Trust Company, a limited purpose trust company
      organized under the banking laws of the State of New York, as Rights Agent
      (the
“Rights Agent”, which term shall include any successor Rights Agent under the
      Rights Agreement), to purchase from the Company at any time after the Separation
      Time (as such term is defined in the Rights Agreement) and prior to the
      Expiration Time (as defined in the Rights Agreement), one one-hundredth (1/100)
      of a fully paid share of Series A Participating Preferred Stock, par value
      $1.00
      per share (the “Preferred Stock”), of the Company (subject to adjustment as
      provided in the Rights Agreement) at the Exercise Price referred to below,
      upon
      presentation and surrender of this Rights Certificate with the Form of Election
      to Exercise duly executed at the principal office of the Rights Agent in New
      York, New York. The Exercise Price shall initially be $25.00 per Right and
      shall
      be subject to adjustment in certain events as provided in the Rights Agreement.
      

    

    In
      certain circumstances described in the Rights Agreement, the Rights evidenced
      hereby may entitle the registered holder thereof to purchase securities of
      an
      entity other than the Company or securities or assets of the Company other
      than
      Preferred Stock, all as provided in the Rights Agreement. 

    

    This
      Rights Certificate is subject to all of the terms, provisions and conditions
      of
      the Rights Agreement, which terms, provisions and conditions are hereby
      incorporated herein by reference and made a part hereof and to which Rights
      Agreement reference is hereby made for a full description of the rights,
      limitations of rights, obligations, duties and immunities hereunder of the
      Rights Agent, the Company and the holders of the Rights Certificates. Copies
      of
      the Rights Agreement are on file at the principal executive offices of the
      Company and are available without cost upon written request. 

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    

    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 evidencing
      an
      aggregate number of Rights equal to the aggregate number of Rights evidenced
      by
      the Rights Certificate or Rights Certificates surrendered. If this Rights
      Certificate shall be exercised in part, the registered holder shall be entitled
      to receive, upon surrender hereof, another Rights Certificate or Rights
      Certificates for the number of whole Rights not exercised. 

    

    Subject
      to the provisions of the Rights Agreement, each Right evidenced by this
      Certificate may be (a) redeemed by the Company under certain circumstances,
      at
      its option, at a redemption price of $0.01 per Right or (b) exchanged by the
      Company under certain circumstances, at its option, for one share of Common
      Stock or one one-hundredth (1/100) of a share of Preferred Stock per Right
      (or,
      in certain cases, other securities or assets of the Company), subject in each
      case to adjustment in certain events as provided in the Rights Agreement.

    

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

    

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

    

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

     

    
      	Date: ____________ 	 	 
	 	 	 
	ATTEST: 	WILSHIRE
              ENTERPRISES, INC.
	 
 	 
 	 
 
	 	By:  	 
	
              
                

              

              Secretary
                or
                Assistant Secretary

            	
              
Name:
	 	Title:

    

    

    
      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

    

     

    Countersigned:
      

     

    
      	 	 	 
	CONTINENTAL
              STOCK TRANSFER & TRUST COMPANY 	
            
	 
 	 
 	 
 
	By:
              	  	 
	
              
                

                Authorized
                  Signature 

              

            	
            
	 	 

    

     

    
      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

    

    

    [Form
      of
      Reverse Side of Rights Certificate]

    

    FORM
      OF ASSIGNMENT

    

    (To
      be
      executed by the registered holder if such

    holder
      desires to transfer this Rights Certificate.)

    

    FOR
      VALUE
      RECEIVED ________________________ hereby sells, assigns and transfers unto
      ____________________________________________________________________________________________________________________

    (please
      print name and address of transferee)

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

    

    Dated:
      _______________, 20__ 

    

    
      	
              Signature
                Guaranteed:

            	
              ___________________________________

            
	 	
              Signature

            
	 	
              (Signature
                must correspond to name as written upon the face of this Rights
                Certificate in every particular, without alteration or enlargement
                or any
                change whatsoever)

            

    

    

    Signatures
      must be guaranteed by a participant in a Securities Transfer Association
      recognized signature program. 

    

    (To
      be
      completed if true)

    

    The
      undersigned hereby represents, for the benefit of all holders of Rights and
      shares of Common Stock, that the Rights evidenced by this Rights Certificate
      are
      not, and, to the knowledge of the undersigned, have never been, Beneficially
      Owned by an Acquiring Person or an Affiliate or Associate thereof (as defined
      in
      the Rights Agreement). 

     

    
      	 	
              
                ___________________________________

              

              Signature

            

    

    
NOTICE

    

    In
      the
      event the certification set forth above is not completed in connection with
      a
      purported assignment, the Company will deem the Beneficial Owner of the Rights
      evidenced by the enclosed Rights Certificate to be an Acquiring Person or an
      Affiliate or Associate thereof (as defined in the Rights Agreement) or a
      transferee of any of the foregoing and accordingly will deem the Rights
      evidenced by such Rights Certificate to be void and not transferable or
      exercisable. 

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    [To
      be
      attached to each Rights Certificate]

    

    FORM
      OF ELECTION TO EXERCISE

    

    (To
      be
      executed if holder desires to

    exercise
      the Rights Certificate.)

    

    TO:
      WILSHIRE ENTERPRISES, INC. 

    

    The
      undersigned hereby irrevocably elects to exercise _______________________ whole
      Rights represented by the attached Rights Certificate to purchase the shares
      of
      Series A Participating Preferred Stock issuable upon the exercise of such Rights
      and requests that certificates for such shares be issued in the name of:

    

    ___________________________________________________

    Name

    
      ___________________________________________________

    

    Address

    ___________________________________________________

    Social
      Security or Other Taxpayer Identification Number

    

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

    

    
      ___________________________________________________

    

    Name

    
      ___________________________________________________

    

    Address

    ___________________________________________________

    Social
      Security or Other Taxpayer Identification Number

    

    Dated:
      _______________, 20__ 

    

    
      	
              Signature
                Guaranteed:

            	
              ___________________________________

            
	 	
              Signature

            
	 	
              (Signature
                must correspond to name as written upon the face of this Rights
                Certificate in every particular, without alteration or enlargement
                or any
                change whatsoever)

            

    

    

    Signatures
      must be guaranteed by a participant in a Securities Transfer Association
      recognized signature program. 

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    

    (To
      be
      completed if true)

    

    The
      undersigned hereby represents, for the benefit of all holders of Rights and
      shares of Common Stock, that the Rights evidenced by the attached Rights
      Certificate are not, and, to the knowledge of the undersigned, have never been,
      Beneficially Owned by an Acquiring Person or an Affiliate or Associate thereof
      (as defined in the Rights Agreement). 

    

    
      	 	
              
                ___________________________________

              

              Signature

            

    

     

    NOTICE

    

    In
      the
      event the certification set forth above is not completed in connection with
      a
      purported exercise, the Company will deem the Beneficial Owner of the Rights
      evidenced by the attached Rights Certificate to be an Acquiring Person or an
      Affiliate or Associate thereof (as defined in the Rights Agreement) or a
      transferee of any of the foregoing and accordingly will deem the Rights
      evidenced by such Rights Certificate to be void and not transferable or
      exercisable. 

    

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    
 

    

    EXHIBIT
      B

    

    FORM
      OF CERTIFICATE OF DESIGNATIONS AND TERMS

    OF
      SERIES A PARTICIPATING PREFERRED STOCK

    OF
      WILSHIRE ENTERPRISES, INC.

    

    Pursuant
      to Section 151 of the General

    Corporation
      Law of the State of Delaware

    

    Wilshire
      Enterprises, Inc., a Delaware corporation (the “Corporation”), does hereby
      certify as follows: 

    

    Pursuant
      to authority granted by Article FOURTH of the Restated Certificate of
      Incorporation of the Corporation, as amended, and in accordance with the
      provisions of Section 151 of the General Corporation Law of the State of
      Delaware, the Board of Directors of the Corporation has adopted the following
      resolutions fixing the designation and certain terms, powers, preferences and
      other rights of a new series of the Corporation’s Preferred Stock, par value
      $1.00 per share, and certain qualifications, limitations and restrictions
      thereon: 

    

    RESOLVED,
      that there is hereby established a series of Preferred Stock, par value $1.00
      per share, of the Corporation, and the designation and certain terms, powers,
      preferences and other rights of the shares of such series, and certain
      qualifications, limitations and restrictions thereon, are hereby fixed as
      follows: 

    

    (i) The
      distinctive serial designation of this series shall be “Series A Participating
      Preferred Stock” (hereinafter called “this Series”). Each share of this Series
      shall be identical in all respects with the other shares of this Series except
      as to the dates from and after which dividends thereon shall be cumulative.
      

    

    (ii) The
      number of shares in this Series shall initially be 375,000 which number may
      from
      time to time be increased or decreased (but not below the number then
      outstanding) by the Board of Directors. Shares of this Series purchased by
      the
      Corporation shall be canceled and shall revert to authorized but unissued shares
      of Preferred Stock undesignated as to series. Shares of this Series may be
      issued in fractional shares, which fractional shares shall entitle the holder,
      in proportion to such holder’s fractional share, to all rights of a holder of a
      whole share of this Series. 

    

    (iii) The
      holders of full or fractional shares of this Series shall be entitled to
      receive, when and as declared by the Board of Directors, but only out of funds
      legally available therefor, dividends, (A) on each date that dividends or other
      distributions (other than dividends or distributions payable in Common Stock
      of
      the Corporation) are payable on or in respect of Common Stock comprising part
      of
      the Reference Package (as defined below), in an amount per whole share of this
      Series equal to the aggregate amount of dividends or other distributions (other
      than dividends or distributions payable in Common Stock of the Corporation)
      that
      would be payable on such date to a holder of the Reference Package and (B)
      on
      the last day of March, June, September and December in each year, in an amount
      per whole share of this Series equal to the excess (if any) of $6.25 over the
      aggregate dividends paid per whole share of this Series during the three month
      period ending on such last day. Each such dividend shall be paid to the holders
      of record of shares of this Series on the date, not exceeding sixty days
      preceding such dividend or distribution payment date, fixed for the purpose
      by
      the Board of Directors in advance of payment of each particular dividend or
      distribution. Dividends on each full and each fractional share of this Series
      shall be cumulative from the date such full or fractional share is originally
      issued; provided, that any such full or fractional share originally issued
      after
      a dividend record date and on or prior to the dividend payment date to which
      such record date relates shall not be entitled to receive the dividend payable
      on such dividend payment date or any amount in respect of the period from such
      original issuance to such dividend payment date. 

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    

    The
      term
“Reference Package” shall initially mean 100 shares of Common Stock, par value
      $1.00 per share (“Common Stock”), of the Corporation. In the event the
      Corporation shall at any time after the close of business on June 22, 2006
      (A)
      declare or pay a dividend on any Common Stock payable in Common Stock, (B)
      subdivide any Common Stock or (C) combine any Common Stock into a smaller
      number of shares, then and in each such case the Reference Package after such
      event shall be the Common Stock that a holder of the Reference Package
      immediately prior to such event would hold thereafter as a result thereof.
      

    

    Holders
      of shares of this Series shall not be entitled to any dividends, whether payable
      in cash, property or stock, in excess of full cumulative dividends, as herein
      provided on this Series. 

    

    So
      long
      as any shares of this Series are outstanding, no dividend (other than a dividend
      in Common Stock or in any other stock ranking junior to this Series as to
      dividends and upon liquidation) shall be declared or paid or set aside for
      payment or other distribution declared or made upon the Common Stock or upon
      any
      other stock ranking junior to this Series as to dividends or upon liquidation,
      nor shall any Common Stock nor any other stock of the Corporation ranking junior
      to or on a parity with this Series as to dividends or upon liquidation be
      redeemed, purchased or otherwise acquired for any consideration (or any moneys
      be paid to or made available for a sinking fund for the redemption of any shares
      of any such stock) by the Corporation (except by conversion into or exchange
      for
      stock of the Corporation ranking junior to this Series as to dividends and
      upon
      liquidation), unless, in each case, the full cumulative dividends (including
      the
      dividend to be due upon payment of such dividend, distribution, redemption,
      purchase or other acquisition) on all outstanding shares of this Series shall
      have been, or shall contemporaneously be, paid. 

    

    (iv) In
      the
      event of any merger, consolidation, reclassification or other transaction in
      which the shares of Common Stock are exchanged for or changed into other stock
      or securities, cash and/or any other property, then in any such case the shares
      of this Series shall at the same time be similarly exchanged or changed in
      an
      amount per whole share equal to the aggregate amount of stock, securities,
      cash
      and/or any other property (payable in kind), as the case may be, that a holder
      of the Reference Package would be entitled to receive as a result of such
      transaction. 

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

    (v) In
      the
      event of any liquidation, dissolution or winding up of the affairs of the
      Corporation, whether voluntary or involuntary, the holders of full and
      fractional shares of this Series shall be entitled, before any distribution
      or
      payment is made on any date to the holders of the Common Stock or any other
      stock of the Corporation ranking junior to this Series upon liquidation, to
      be
      paid in full an amount per whole share of this Series equal to the greater
      of
      (A) $2,500.00 or (B) the aggregate amount distributed or to be distributed
      prior to such date in connection with such liquidation, dissolution or winding
      up to a holder of the Reference Package (such greater amount being hereinafter
      referred to as the “Liquidation Preference”), together with accrued dividends to
      such distribution or payment date, whether or not earned or declared. If such
      payment shall have been made in full to all holders of shares of this Series,
      the holders of shares of this Series as such shall have no right or claim to
      any
      of the remaining assets of the Corporation. 

    

    In
      the
      event the assets of the Corporation available for distribution to the holders
      of
      shares of this Series upon any liquidation, dissolution or winding up of the
      Corporation, whether voluntary or involuntary, shall be insufficient to pay
      in
      full all amounts to which such holders are entitled pursuant to the first
      paragraph of this Section (v), no such distribution shall be made on account
      of
      any shares of any other class or series of Preferred Stock ranking on a parity
      with the shares of this Series upon such liquidation, dissolution or winding
      up
      unless proportionate distributive amounts shall be paid on account of the shares
      of this Series, ratably in proportion to the full distributable amounts for
      which holders of all such parity shares are respectively entitled upon such
      liquidation, dissolution or winding up.

    

    Upon
      the
      liquidation, dissolution or winding up of the Corporation, the holders of shares
      of this Series then outstanding shall be entitled to be paid out of assets
      of
      the Corporation available for distribution to its stockholders all amounts
      to
      which such holders are entitled pursuant to the first paragraph of this Section
      (v) before any payment shall be made to the holders of Common Stock or any
      other
      stock of the Corporation ranking junior upon liquidation to this Series.

    

    For
      the
      purposes of this Section (v), the consolidation or merger of, or binding share
      exchange by, the Corporation with any other corporation shall not be deemed
      to
      constitute a liquidation, dissolution or winding up of the Corporation.

    

    (vi) The
      shares of this Series shall not be redeemable. 

    

    (vii) In
      addition to any other vote or consent of stockholders required by law or by
      the
      Restated Certificate of Incorporation, as amended, of the Corporation, each
      whole share of this Series shall, on any matter, vote as a class with any other
      capital stock comprising part of the Reference Package and voting on such matter
      and shall have one vote per share. 

    

    (viii) The
      Series A Participating Preferred Stock shall rank junior as to the payment
      of
      dividends and amounts upon liquidation, dissolution and winding up to all of
      the
      Corporation’s capital stock except (A) the Common Stock and (B) any other
      capital stock of the Corporation which by its terms ranks junior to the Series
      A
      Participating Preferred Stock as to the payment of dividends or amounts upon
      liquidation, dissolution or winding up. 

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    

    (ix) Other
      than as set forth herein and as provided by law, the Series A Participating
      Preferred Stock shall not have any other powers, preference or other rights
      or
      privileges. 

    

    IN
      WITNESS WHEREOF, the Corporation has caused this certificate to be duly signed
      by S. Wilzig Izak, its Chairman of the Board and Chief Executive Officer, on
      the
      22nd day of June, 2006. 

     

    
      	 	 	 
	 	WILSHIRE
              ENTERPRISES, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
                

              

              S. Wilzig Izak

              
                Chairman
                  of the Board and 

                Chief
                  Executive Officer

              

            
	 	 

    

    
      
        
        

      

      
        -4-

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