Document:

Exhibit 4.1

    
      

    

     

    RIGHTS
      AGREEMENT

    

    between

    

    ORTHOLOGIC
      CORP.

    

    and

    

    THE
      BANK
      OF NEW YORK

    

    

    Dated:
      As
      of June 19, 2007

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Table
      of
      Contents

     

    
      	 	 	
              Page

            
	 	 	 
	
              Section
                1.

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

            	
              1

            
	
              Section
                2.

            	
              Appointment
                of Rights Agent

            	
              4

            
	
              Section
                3.

            	
              Issue
                of Right Certificates

            	
              4

            
	
              Section
                4.

            	
              Form
                of Right Certificates

            	
              6

            
	
              Section
                5.

            	
              Countersignature
                and Registration

            	
              7

            
	
              Section
                6.

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

            	
              7

            
	
              Section
                7.

            	
              Exercise
                of Rights; Purchase Price; Expiration Date of Rights

            	
              8

            
	
              Section
                8.

            	
              Cancellation
                and Destruction of Right Certificates

            	
              9

            
	
              Section
                9.

            	
              Reservation
                and Availability of Series A Shares; Registration

            	
              10

            
	
              Section
                10.

            	
              Series
                A Shares Record Date

            	
              11

            
	
              Section
                11.

            	
              Adjustment
                of Purchase Price, Number and Kind of Shares or Number of
                Rights

            	
              11

            
	
              Section
                12.

            	
              Certificate
                of Adjusted Purchase Price or Number of Shares

            	
              17

            
	
              Section
                13.

            	
              Consolidation,
                Merger or Sale or Transfer Assets or Earning Power

            	
              18

            
	
              Section
                14.

            	
              Fractional
                Rights and Fractional Shares

            	
              20

            
	
              Section
                15.

            	
              Rights
                of Action

            	
              21

            
	
              Section
                16.

            	
              Agreement
                of Right Holders

            	
              21

            
	
              Section
                17.

            	
              Right
                Certificate Holder Not Deemed a Shareholder

            	
              22

            
	
              Section
                18.

            	
              Concerning
                the Rights Agent

            	
              22

            
	
              Section
                19.

            	
              Merger
                or Consolidation or Change of Name of Rights Agent

            	
              23

            
	
              Section
                20.

            	
              Duties
                of Rights Agent

            	
              23

            
	
              Section
                21.

            	
              Change
                of Rights Agent

            	
              25

            
	
              Section
                22.

            	
              Issuance
                of New Right Certificates

            	
              26

            
	
              Section
                23.

            	
              Redemption

            	
              26

            
	
              Section
                24.

            	
              Exchange

            	
              26

            
	
              Section
                25.

            	
              Notice
                of Certain Events

            	
              27

            
	
              Section
                26.

            	
              Notices

            	
              28

            
	
              Section
                27.

            	
              Supplements
                and Amendments

            	
              29

            
	
              Section
                28.

            	
              Successors;
                Assignment

            	
              29

            
	
              Section
                29.

            	
              Benefits
                of this Agreement

            	
              29

            
	
              Section
                30.

            	
              Severability

            	
              30

            
	
              Section
                31.

            	
              Governing
                Law

            	
              30

            
	
              Section
                32.

            	
              Special,
                Indirect and Consequential Damages

            	
              30

            
	
              Section
                33.

            	
              Counterparts

            	
              30

            
	
              Section
                34.

            	
              Descriptive
                Headings

            	
              30

            
	
               

            	 	 
	 	 	 
	
              Exhibits:

            	 	 
	 	 	 
	
              Exhibit
                A:

            	
              Series
                A Preferred Stock Designation

            	 
	
              Exhibit
                B:

            	
              Form
                of Right Certificate and related documents

            	 
	
              Exhibit
                C:

            	
              Summary
                of Rights to Purchase Series A Preferred Stock

            	 

    

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    RIGHTS
      AGREEMENT

    

    Rights
      Agreement, dated as of June 19, 2007, is between ORTHOLOGIC CORP., a Delaware
      corporation (the “Company”), and THE BANK OF NEW YORK, a New York corporation
      (the “Rights Agent”).

    

    The
      Board
      of Directors of the Company has authorized and declared a dividend of one
      preferred share purchase right (a “Right”) for each Common Share (as hereinafter
      defined) of the Company outstanding at the close of business on July 2, 2007
      (the “Record Date”), each Right representing the right to purchase one
      one-hundredth (1/100) of a share of Series A Preferred Stock, par value $.0005
      per share, of the Company (“Series A Preferred Stock”) having the rights and
      preferences set forth in the form of Preferred Stock Designation with respect
      to
      the Series A Preferred Stock, a copy of which is attached hereto as Exhibit
      A.
      The Board of Directors has further authorized the issuance of one Right with
      respect to each Common Share that shall become outstanding (whether originally
      issued or delivered from the Company’s treasury) after the Record Date and on or
      prior to the earliest of the Separation Date, the Redemption Date and the Final
      Expiration Date (each as hereinafter defined).

    

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

     

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

    

    (a)   “Acquiring
      Person” shall mean any Person who, together with all Affiliates and Associates
      of such Person, shall hereafter become the Beneficial Owner of twenty percent
      (20%) or more of the Common Shares then outstanding, but shall not include
      the
      Company, any wholly-owned Subsidiary of the Company, any employee benefit plan
      of the Company or any Subsidiary of the Company, or any entity holding Common
      Shares for or pursuant to the terms of any such plan.

    

    (b)   “Affiliate”
      and “Associate” shall have the respective meanings ascribed to such terms in
      Rule 12b-2 of the General Rules and Regulations (the “Rules”) under the
      Securities Exchange Act of 1934, as amended (the “Exchange Act”), as in effect
      on the Record Date.

    

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

    

    (i)   which
      such Person or any of such Person’s Affiliates or Associates beneficially owns,
      directly or indirectly; 

    

    (ii)   which
      such Person or any of such Person’s Affiliates or Associates has (A) the right
      to acquire (whether such right is exercisable immediately or only after the
      passage of time) pursuant to any agreement, arrangement or understanding (other
      than customary agreements with and between underwriters and selling group
      members with respect to a bona fide public offering of securities), 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 of, or to beneficially own, securities tendered
      pursuant to a tender or exchange offer made by or on behalf of such Person
      or
      any of such Person’s Affiliates or Associates until such tendered securities are
      accepted for purchase or exchange; or (B) the right to vote pursuant to any
      agreement, arrangement or understanding; provided, however, that a Person shall
      not be deemed the Beneficial Owner of, or to beneficially own, any security
      if
      the agreement, arrangement or understanding to vote such security (1) arises
      solely from a revocable proxy or consent given to such Person in response to
      a
      public proxy or consent solicitation made pursuant to, and in accordance with,
      the applicable rules and regulations promulgated under the Exchange Act and
      (2)
      is not also then reportable on Schedule 13D under the Exchange Act (or any
      comparable or successor report); or 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iii)   which
      are
      beneficially owned, directly or indirectly, by any other Person with which
      such
      Person or any of such Person’s Affiliates or Associates has any agreement,
      arrangement or understanding (other than customary agreements with and between
      underwriters and selling group members with respect to a bona fide public
      offering of securities) for the purpose of acquiring, holding, voting (except
      to
      the extent contemplated by the proviso to Section 1(c)(ii)(B) hereof) or
      disposing of any securities of the Company. 

    

    Notwithstanding
      anything in this definition of Beneficial Ownership to the contrary, the phrase
      “then outstanding,” when used with reference to a Person’s Beneficial Ownership
      of securities of the Company, shall mean the number of such securities then
      issued and outstanding together with the number of such securities not then
      actually issued and outstanding which such Person would be deemed to own
      beneficially hereunder. 

    

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

    

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

    

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

    

    (g)   “Common
      Shares” when used with reference to the Company shall mean shares of Common
      Stock, par value $.0005 per share, of the Company. “Common Shares” or “common
      shares,” when used with reference to any Person other than the Company, shall
      mean the capital stock of such Person with the greatest voting power or the
      equity securities or other equity interest having power to control or direct
      the
      management of such Person.

    

    (h)   “Person”
      shall mean any individual, firm, corporation, partnership, limited liability
      company or other entity and shall include any successor (by merger or otherwise)
      of such entity.

    

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

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

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

    

    (k)   “Series
      A
      Shares” shall mean shares of Series A Preferred Stock, par value $.0005 a share,
      of the Company, including any authorized fraction of a Series A Share, unless
      the context otherwise requires.

    

    (l)   “Shares
      Acquisition Date” shall mean the first date of public announcement (including,
      without limitation, a report filed pursuant to Section 13(d) or 14(d) under
      the
      Exchange Act) by the Company or an Acquiring Person indicating that an Acquiring
      Person has become such.

    

    (m)   “Subsidiary”
      shall mean, with reference to any Person, any corporation or other entity of
      which a majority of the voting power of the voting securities or voting
      interests is owned, directly or indirectly, by such Person, or otherwise
      controlled by such Person.

    

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

    

    The
      following terms shall have the meanings indicated in the following Sections
      of
      this Agreement:

    

    
      	 	
              (i)

            	
              “Act”
                -- Section 9(c).

            

    

    

    
      	 	
              (ii)

            	
              “Adjustment
                Shares” -- Section 11(a)(ii).

            

    

    

    
      	 	
              (iii)

            	
              “Common
                Share equivalent” -- Section
                11(a)(iii)

            

    

    

    
      	 	
              (iv)

            	
              “Current
                Value” -- Section 11(a)(iii).

            

    

    

    
      	 	
              (v)

            	
              “equivalent
                preferred shares” -- Section 11(b).

            

    

    

    
      	 	
              (vi)

            	
              “Exchange
                Act” -- Section 1(b).

            

    

    

    
      	 	
              (vii)

            	
              “Extension
                Date” -- Section 27.

            

    

    

    
      	 	
              (viii)

            	
              “Final
                Expiration Date” --Section 7(a).

            

    

    

    
      	 	
              (ix)

            	
              “Principal
                Party” -- Section 13(b).

            

    

    

    
      	 	
              (x)

            	
              “Purchase
                Price” -- Section 4(a) and 13(a).

            

    

    

    
      	 	
              (xi)

            	
              “Record
                Date” -- Preamble.

            

    

    

    
      	 	
              (xii)

            	
              “Redemption
                Date” -- Section 7(a).

            

    

    

    
      	 	
              (xiii)

            	
              “Redemption
                Price” -- Section 23(a)(i).

            

    

    

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (xiv)

            	
              “Rules”
                -- Section 1(b).

            

    

    

    
      	 	
              (xv)

            	
              “Separation
                Date” -- Section 3(a).

            

    

    

    
      	 	
              (xvi)

            	
              “Series
                A Preferred Stock” -- Preamble.

            

    

    

    
      	 	
              (xvii)

            	
              “Spread”
                -- Section 11(a)(iii).

            

    

    

    
      	 	
              (xviii)

            	
              “Springing
                Right of Redemption” -Section
                23(a)(i).

            

    

    

    
      	 	
              (xix)

            	
              “Substitution
                Period” -- Section 11(a)(iii).

            

    

    

    
      	 	
              (xx)

            	
              “Summary
                of Rights -- Section 3(b).

            

    

    

    
      	 	
              (xxi)

            	
              “Trading
                Day” -- Section 11(d)(i).

            

    

     

    Section
      2.   Appointment
      of Rights Agent.
      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 and agrees to act as Rights Agent under this Agreement.
      The Company may from time to time appoint such co-rights agents as it may deem
      necessary or desirable.

     

    Section
      3.   Issue
      of Right Certificates.

    

    (a)   Until
      the
      earlier of (i) the tenth day following the Shares Acquisition Date or (ii)
      the
      close of business on the tenth Business Day after the date on which a tender
      or
      exchange offer by any Person (other than the Company, any Subsidiary of the
      Company, any employee benefit plan of the Company or of any Subsidiary of the
      Company, or any Person or entity organized, appointed or established by the
      Company for or pursuant to the terms of any such plan) is first commenced within
      the meaning of Rule 14d-2(a) of the Rules, if upon consummation thereof, such
      Person would be the Beneficial Owner of twenty percent (20%) or more of the
      Common Shares then outstanding (the earlier of (i) and (ii) being herein
      referred to as the “Separation Date”), (x) the Rights will be evidenced (subject
      to the provisions of paragraph (b) of this Section 3) by the certificates for
      Common Shares registered in the names of the holders thereof (which certificates
      shall also be deemed to be Right Certificates) and not by separate Right
      Certificates, and (y) the right to receive Right Certificates will be
      transferable only in connection with the transfer of Common Shares. As soon
      as
      practicable after the Separation Date, the Rights Agent will send, by
      first-class, insured, postage-prepaid mail, to each record holder of Common
      Shares as of the close of business on the Separation Date, at the address of
      such holder shown on the records of the Company, one or more Right Certificates,
      in substantially the form of Exhibit B hereto, evidencing one Right for each
      Common Share so held. In the event that an adjustment in the number of Rights
      per Common Share has been made pursuant to Section 11(p) hereof, at the time
      of
      distribution of the Right Certificates, the Company shall make the necessary
      and
      appropriate rounding adjustments (in accordance with Section 14(a) hereof)
      so
      that Right Certificates representing only whole numbers of Rights are
      distributed and cash is paid in lieu of any fractional Rights. As of and after
      the Separation Date, the Rights will be evidenced solely by such Right
      Certificates.

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    (b)   As
      soon
      as practicable following the Record Date, the Company will send a copy of a
      Summary of Rights to Purchase Series A Preferred Stock, in substantially the
      form attached hereto as Exhibit C (the “Summary of Rights”), by first-class,
      postage-prepaid mail, to each record holder of Common Shares as of the close
      of
      business on the Record Date, at the address of such holder shown on the records
      of the Company. With respect to certificates for Common Shares outstanding
      as of
      the Record Date, until the Separation Date, the Rights will be evidenced by
      such
      certificates registered in the names of the holders thereof and the registered
      holders of the Common Shares shall also be the registered holders of the
      associated Rights. Until the earliest of the Separation Date, the Redemption
      Date or the Final Expiration Date, the surrender for transfer of any certificate
      for Common Shares outstanding on the Record Date shall also constitute the
      transfer of the Rights associated with the Common Shares represented
      thereby.

    

    (c)   Certificates
      for Common Shares issued after the Record Date but prior to the earliest of
      the
      Separation Date, the Redemption Date or the Final Expiration Date shall have
      impressed on, printed on, written on or otherwise affixed to them the following
      legend:

    

    THIS
      CERTIFICATE ALSO EVIDENCES AND ENTITLES THE HOLDER HEREOF TO CERTAIN RIGHTS
      AS
      SET FORTH IN A RIGHTS AGREEMENT BETWEEN ORTHOLOGIC CORP. AND THE BANK OF NEW
      YORK DATED AS OF JUNE 19, 2007 (THE “RIGHTS AGREEMENT”), THE TERMS OF WHICH ARE
      HEREBY INCORPORATED HEREIN BY REFERENCE AND A COPY OF WHICH IS ON FILE AT THE
      PRINCIPAL EXECUTIVE OFFICES OF ORTHOLOGIC CORP. UNDER CERTAIN CIRCUMSTANCES,
      AS
      SET FORTH IN THE RIGHTS AGREEMENT, SUCH RIGHTS WILL BE EVIDENCED BY SEPARATE
      CERTIFICATES AND WILL NO LONGER BE EVIDENCED BY THIS CERTIFICATE. ORTHOLOGIC
      CORP. WILL MAIL TO THE HOLDER OF THIS CERTIFICATE A COPY OF THE RIGHTS AGREEMENT
      WITHOUT CHARGE PROMPTLY FOLLOWING RECEIPT OF A WRITTEN REQUEST THEREFOR. UNDER
      CERTAIN CIRCUMSTANCES SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS ISSUED TO,
      OR
      HELD BY, ANY PERSON WHO IS, WAS OR BECOMES AN ACQUIRING PERSON OR ANY AFFILIATE
      OR ASSOCIATE THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT),
      WHETHER CURRENTLY HELD BY OR ON BEHALF OF SUCH PERSON OR BY ANY SUBSEQUENT
      HOLDER, MAY BECOME NULL AND VOID.

    

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    Section
      4.   Form
      of Right Certificates.

     

    (a)   The
      Right
      Certificates (and the forms of assignment and election to purchase Series A
      Shares to be printed on the reverse thereof) shall be substantially the same
      as
      Exhibit B hereto and may have such marks of identification or designation and
      such legends, summaries or endorsements printed thereon as the Company may
      deem
      appropriate and as are not inconsistent with the provisions of this Agreement,
      or as may be required to comply with any applicable law or with any rule or
      regulation made pursuant thereto or with any rule or regulation of any stock
      exchange on which the Rights may from time to time be listed, or to conform
      to
      usage. Subject to the provisions of Section 11 and Section 22 hereof, the Right
      Certificates, whenever distributed, shall be dated as of the Record Date and
      on
      their face shall entitle the holders thereof to purchase such number of one
      one-hundredths of a share of Series A Preferred Stock as shall be set forth
      therein at the price per one one-hundredth of a Series A Share set forth therein
      (the “Purchase Price”), but the amount and type of the securities purchasable
      (or other consideration to be made available) upon the exercise of each Right
      and the Purchase Price thereof shall be subject to adjustment as provided
      herein.

    

    (b)   Any
      Right
      Certificate issued pursuant to Section 3(a) or Section 22 hereof that represents
      Rights beneficially owned by (i) an Acquiring Person or an Associate or
      Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person
      (or
      such Associate or Affiliate) who becomes a transferee after the Acquiring Person
      becomes such (other than a bona fide purchaser for value who has no knowledge
      that the transferor was an Acquiring Person or an Associate or Affiliate of
      an
      Acquiring Person) or (iii) a transferee of an Acquiring Person (or such
      Associate or Affiliate) who becomes a transferee prior to or concurrently with
      the Acquiring Person becoming such and receives such Rights pursuant to either
      (A) a transfer (whether or not for consideration) from the Acquiring Person
      to
      holders of equity interests in such Acquiring Person or to any Person with
      whom
      the Acquiring Person has any continuing agreement, arrangement or understanding
      regarding the transferred Rights or (B) a transfer that the Board has determined
      is part of a plan, arrangement or understanding that has as a primary purpose
      or
      effect avoidance of Section 7(e) hereof, and any Right Certificate issued
      pursuant to Section 6 or Section 11 hereof upon transfer, exchange, replacement
      or adjustment of any other Right Certificate referred to in this sentence,
      shall
      contain (to the extent feasible) the following legend:

    

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

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    Section
      5.   Countersignature
      and Registration.

    

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

    

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

     

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

    

    (a)   Subject
      to the provisions of Sections 4(b), 7(e) and 14 hereof, at any time after the
      close of business on the Separation Date, and at or prior to the close of
      business on the earlier of the Redemption Date or the Final Expiration Date,
      any
      Right Certificate or Right Certificates may be transferred, split up, combined
      or exchanged for another Right Certificate or Right Certificates, entitling
      the
      registered holder to purchase a like number of Series A Shares (or, following
      a
      Section 11(a)(ii) Event or Section 13(a) Event, Common Shares, other securities
      or property, as the case may be) as the Right Certificate or Right Certificates
      surrendered then entitled such holder to purchase. Any registered holder
      desiring to transfer, split up, combine or exchange any Right Certificate shall
      make such request in writing delivered to the Rights Agent, and shall surrender
      the Right Certificate or Right Certificates to be transferred, split up,
      combined or exchanged at the principal office of the Rights Agent designated
      for
      such purpose. Neither the Rights Agent nor the Company shall be obligated to
      take any action whatsoever with respect to the transfer of any such surrendered
      Right Certificate until the registered holder shall have completed and signed
      the certificate contained in the form of assignment on the reverse side of
      such
      Right Certificate and shall have provided such additional evidence of the
      identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates
      or
      Associates thereof as the Company shall reasonably request. Thereupon the Rights
      Agent shall countersign and deliver to the person entitled thereto a Right
      Certificate or Right Certificates, as the case may be, as so requested. The
      Company may require payment of a sum sufficient to cover any tax or governmental
      charge that may be imposed in connection with any transfer, split up,
      combination or exchange of Right Certificates.

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    (b)   Upon
      receipt by the Company and the Rights Agent of evidence reasonably satisfactory
      to them of the loss, theft, destruction or mutilation of a Right Certificate,
      and, in case of loss, theft or destruction, of indemnity or security reasonably
      satisfactory to them, and, at the Company’s request, reimbursement to the
      Company and the Rights Agent of all reasonable expenses incidental thereto,
      and
      upon surrender to the Rights Agent and cancellation of the Right Certificate
      if
      mutilated, the Company will make and deliver a new Right Certificate of like
      tenor to the Rights Agent for delivery to the registered owner in lieu of the
      Right Certificate so lost, stolen, destroyed or mutilated.

     

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

    

    (a)   Subject
      to Section 7(e) hereof, the registered holder of any Right Certificate may
      exercise the Rights evidenced thereby (except as otherwise provided herein)
      in
      whole or in part at any time after the Separation Date upon surrender of the
      Right Certificate, with the form of election to purchase on the reverse side
      thereof duly executed, to the Rights Agent at the principal office of the Rights
      Agent designated for such purpose, together with payment of the Purchase Price
      for each one one-hundredth of a Series A Share as to which the Rights are
      exercised, at or prior to the close of business on the earlier of (i) June
      19,
      2010 (the “Final Expiration Date”) or (ii) the date on which the Rights are
      redeemed as provided in Section 23 hereof (the “Redemption Date”).

    

    (b)   The
      Purchase Price for each one one-hundredth of a Series A Share pursuant to the
      exercise of a Right shall initially be Six Dollars ($6.00), shall be subject
      to
      adjustment from time to time as provided in Sections 11 and 13 hereof and shall
      be payable in lawful money of the United States of America in accordance with
      paragraph (c) below.

    

    (c)   Upon
      receipt of a Right Certificate representing exercisable Rights, with the form
      of
      election to purchase duly executed, accompanied by payment of the Purchase
      Price
      for the Series A Shares (or other shares, securities or property, as the case
      may be) to be purchased and an amount equal to any applicable transfer tax
      required to be paid by the holder of such Right Certificate in accordance with
      Section 9 hereof, in cash, or by certified check or cashier’s check payable to
      the order of the Company, the Rights Agent shall, subject to Section 20(k)
      hereof, thereupon promptly (i) either (A) requisition from any transfer agent
      of
      the Series A Shares (or make available, if the Rights Agent is the transfer
      agent for such shares) certificates for the number of Series A Shares (or
      fractions thereof) to be purchased (and the Company hereby irrevocably
      authorizes its transfer agent to comply with all such requests) or (B) if the
      Company shall have elected to deposit the Series A Shares issuable upon exercise
      of the Rights hereunder with a depositary agent, requisition from the depositary
      agent depositary receipts representing such number of one one-hundredths of
      a
      Series A Share as are to be purchased (in which case certificates for the Series
      A Shares represented by such receipts shall be deposited by the transfer agent
      with the depositary agent) and the Company hereby directs the depositary agent
      to comply with such request, (ii) when appropriate, requisition from the Company
      the amount of cash to be paid in lieu of issuance of fractional shares in
      accordance with Section 14 hereof, (iii) promptly after receipt of such
      certificates or depositary receipts, cause the same to be delivered to or upon
      the order of the registered holder of such Right Certificate, registered in
      such
      name or names as may be designated by such holder and (iv) when appropriate,
      after receipt, promptly deliver such cash to or upon the order of the registered
      holder of such Right Certificate. In the event that the Company is obligated
      to
      issue other securities (including Common Shares) or assets pursuant to Section
      11(a) hereof, the Company will make all arrangements necessary so that such
      other securities or assets are available for distribution by the Rights Agent,
      if and when appropriate.

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

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

    

    (e)   Notwithstanding
      anything in this Agreement to the contrary, from and after the occurrence of
      a
      Triggering Event, any Rights beneficially owned by (i) an Acquiring Person
      or an
      Associate or Affiliate of an Acquiring Person, (ii) a transferee from an
      Acquiring Person (or of any such Associate or Affiliate) who becomes a
      transferee after the Acquiring Person becomes such (other than a bona fide
      purchaser for value who has no knowledge that the transferor was an Acquiring
      Person or an Associate or Affiliate of an Acquiring Person) or (iii) a
      transferee of an Acquiring Person (or such Associate or Affiliate) who becomes
      a
      transferee prior to or concurrently with the Acquiring Person becoming such
      and
      receives such Rights pursuant to either (A) a transfer (whether or not for
      consideration) from the Acquiring Person to holders of equity interests in
      such
      Acquiring Person or to any Person with whom the Acquiring Person has any
      continuing agreement, arrangement or understanding regarding the transferred
      Rights or (B) a transfer that the Board has determined is part of a plan,
      arrangement or understanding that has as a primary purpose or effect the
      avoidance of this Section 7(e), shall become null and void without any further
      action, and any holder of such Rights shall thereupon have no rights whatsoever
      with respect to such Rights, whether under any provision of this Agreement
      or
      otherwise. The Company shall use all reasonable efforts to insure that the
      provisions of this Section 7(e) and Section 4(b) hereof are complied with,
      but
      shall have no liability to any holder of Right Certificates or other Person
      as a
      result of its failure to make any determinations with respect to an Acquiring
      Person or its Affiliates, Associates or transferees hereunder.

    

    (f)   Notwithstanding
      anything in this Agreement to the contrary, neither the Rights Agent nor the
      Company shall be obligated to undertake any action with respect to a registered
      holder upon the occurrence of any purported exercise as set forth in this
      Section 7 unless such registered holder shall have (i) completed and signed
      the
      certificate contained in the form of election to purchase set forth on the
      reverse side of the Right Certificate surrendered for such exercise and (ii)
      provided such additional evidence of the identity of the Beneficial Owner (or
      former Beneficial Owner) or Affiliates or Associates thereof as the Company
      shall reasonably request.

     

    Section
      8.   Cancellation
      and Destruction of Right Certificates.
      All
      Right Certificates surrendered for the purpose of exercise, transfer, split
      up,
      combination or exchange shall, if surrendered to the Company or to any of its
      agents, be delivered to the Rights Agent for cancellation or in canceled form,
      or, if surrendered to the Rights Agent, shall be canceled by it, and no Right
      Certificates shall be issued in lieu thereof except as expressly permitted
      by
      any of the provisions of this Rights Agreement. The Company shall deliver to
      the
      Rights Agent for cancellation and retirement, and the Rights Agent shall so
      cancel and retire, any other Right Certificate purchased or acquired by the
      Company otherwise than upon the exercise thereof. The Rights Agent shall deliver
      all canceled Right Certificates to the Company, or shall, at the written request
      of the Company, destroy such canceled Right Certificates, and in such case
      shall
      deliver a certificate of destruction thereof to the Company.

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    Section
      9.   Reservation
      and Availability of Series A Shares; Registration.

    

    (a)   The
      Company covenants and agrees that it will cause to be reserved and kept
      available out of its authorized and unissued Series A Shares the number of
      Series A Shares that will be sufficient to permit the exercise in full of all
      outstanding Rights. Prior to the occurrence of a Triggering Event, the Company
      shall not be obliged to cause to be reserved and kept available out of its
      authorized and unissued Common Shares or shares of preferred stock (other than
      Series A Shares), any such Common Shares or any shares of preferred stock (other
      than the Series A Shares) to permit exercise of outstanding Rights.

    

    (b)   If
      the
      Series A Shares issuable upon the exercise of Rights are listed on any national
      securities exchange, the Company shall use its best efforts to cause, from
      and
      after such time as the Rights become exercisable, all shares reserved for such
      issuance to be listed on such exchange upon official notice of issuance upon
      such exercise.

    

    (c)   If
      then
      required by applicable law, the Company shall use its best efforts to (i) file,
      as soon as practicable following the earliest date after the occurrence of
      a
      Triggering Event as to which the consideration to be delivered by the Company
      upon exercise of the Rights has been determined pursuant to this Agreement,
      or
      as soon as is required by law following the Separation Date, as the case may
      be,
      a registration statement under the Securities Act of 1933 (the “Act”), with
      respect to the securities purchasable upon exercise of the Rights on an
      appropriate form, (ii) cause such registration statement to become effective
      as
      soon as practicable after such filing and (iii) cause such registration
      statement to remain effective (with a prospectus at all times meeting the
      requirements of the Act) until the earlier of (A) the date as of which the
      Rights are no longer exercisable for such securities and (B) the Final
      Expiration Date. If then required by applicable law, the Company will also
      take
      such action as may be appropriate under the securities or “blue sky” laws of the
      various states. The Company may temporarily suspend, for a period of time not
      to
      exceed ninety (90) days after the date set forth in clause (i) of this Section
      9(c), the exercisability of the Rights in order to prepare and file such
      registration statement. Upon any such suspension, the Company shall issue a
      public announcement stating that the exercisability of the Rights has been
      temporarily suspended. Notwithstanding any provision of this Agreement to the
      contrary, the Rights shall not be exercisable in any jurisdiction unless the
      requisite qualification in such jurisdiction shall have been
      obtained.

    

    (d)   The
      Company covenants and agrees that it will take all such action as may be
      necessary to ensure that all Series A Shares delivered upon exercise of Rights
      shall, at the time of delivery of the certificates for such shares (subject
      to
      payment of the Purchase Price), be duly and validly authorized and issued and
      fully paid and nonassessable shares.

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    (e)   The
      Company covenants and agrees that it will pay when due and payable any and
      all
      federal and state transfer taxes and charges that may be payable in respect
      of
      the issuance or delivery of the Right Certificates or of any Series A Shares
      (or
      Common Shares and/or other securities, as the case may be) upon the exercise
      of
      Rights. The Company shall not, however, be required to pay any transfer tax
      that
      may be payable in respect of any transfer or delivery of Right Certificates
      to a
      person other than, or the issuance or delivery of certificates for the Series
      A
      Shares (or Common Shares and/or other securities, as the case may be) in a
      name
      other than that of, the registered holder of the Right Certificate evidencing
      Rights surrendered for exercise or to issue or deliver any certificates for
      Series A Shares (or Common Shares and/or other securities, as the case may
      be)
      upon the exercise of any Rights until any such tax shall have been paid (any
      such tax being payable by the holder of such Right Certificate at the time
      of
      surrender) or until it has been established to the Company’s satisfaction that
      no such tax is due.

     

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

     

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

    

    (a)   i)   In
      the
      event that the Company shall at any time after the date of this Agreement (A)
      declare a dividend on the Series A Shares payable in Series A Shares, (B)
      subdivide the outstanding Series A Shares, (C) combine the outstanding Series
      A
      Shares into a smaller number of Series A Shares or (D) issue any shares of
      its
      capital stock in a reclassification of the Series A Shares (including any such
      reclassification in connection with a consolidation or merger in which the
      Company is the continuing or surviving corporation), except as otherwise
      provided in this Section 11(a) and Section 7(e) hereof, the Purchase Price
      in
      effect at the time of the record date for such dividend or of the effective
      date
      of such subdivision, combination or reclassification, and the number and kind
      of
      shares of capital stock issuable on such date, shall be proportionately adjusted
      so that the holder of any Right exercised after such time shall be entitled
      to
      receive the aggregate number and kind of shares of capital stock that, if such
      Right had been exercised immediately prior to such date and at a time when
      the
      Series A Shares transfer books of the Company were open, such holder would
      have
      owned upon such exercise and been entitled to receive by virtue of such
      dividend, subdivision, combination or reclassification.

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    (ii)   Subject
      to Sections 24 and 7(e) hereof, in the event any Person becomes an Acquiring
      Person other than pursuant to any transaction set forth in Section 13(a), each
      holder of a Right shall thereafter have a right to receive, upon exercise
      thereof at a price equal to the then current Purchase Price multiplied by the
      number of one one-hundredths of a Series A Share for which a Right is then
      exercisable, in accordance with the terms of this Agreement and in lieu of
      Series A Shares, such number of Common Shares as shall equal the result obtained
      by (A) multiplying the then current Purchase Price by the number of one
      one-hundredths of a Series A Share for which a Right is then exercisable and
      dividing that product by (B) 50% of the then current per share market price
      of
      the Common Shares (determined pursuant to Section 11(d) hereof) on the date
      the
      Person became an Acquiring Person, but not less than the par value thereof
      (the
“Adjustment Shares”). 

    

    (iii)   In
      the
      event that the total of the Common Shares that are issued but not outstanding
      and authorized but unissued (excluding Common Shares reserved for issuance
      pursuant to the specific terms of any indenture, option plan or other agreement)
      is not sufficient to permit the exercise in full of the Rights in accordance
      with Section 11(a)(ii) hereof, and subject to such limitations as are necessary
      to prevent a default under any agreement for money borrowed to which the Company
      is a party and to comply with applicable law, then the Board shall: (A)
      determine the excess of (1) the value, based upon the current per share market
      price of the Common Shares (determined pursuant to Section 11(d) hereof), of
      the
      Adjustment Shares issuable upon the exercise of a Right (the “Current Value”)
      over (2) the Purchase Price (such excess, the “Spread”) and (B) with respect to
      each Right, make adequate provision to substitute for, or provide an election
      to
      acquire in lieu of, the Adjustment Shares, upon payment of the applicable
      Purchase Price (which term shall include any reduced Purchase Price) any
      combination of the following having an aggregate value equal to the Current
      Value (such aggregate value to be determined by the Board based upon the advice
      of a nationally recognized investment banking firm selected by the Board):
      (1) a
      reduction in the Purchase Price, (2) Common Shares and/or other equity
      securities of the Company (including, without limitation, shares or units of
      shares of any series of preferred stock that the Board has deemed to have the
      same value as Common Shares (such shares or units of share of preferred stock
      hereinafter referred to as “Common Share equivalents”)) and/or (3) debt
      securities of the Company and/or cash and other assets having an aggregate
      value
      equal to the Current Value, where such aggregate value has been determined
      by
      the Board based upon the advice of a nationally-recognized investment banking
      firm selected by the Board; provided, however, that if the Company shall not
      have made adequate provision to deliver value pursuant to clause (B) above
      within thirty (30) days following the first occurrence of a Triggering Event,
      then the Company shall be obligated to deliver, upon the surrender for exercise
      of a Right and without requiring payment of the Purchase Price, Common Shares
      (to the extent available) and then, if necessary, cash, which securities and/or
      cash in the aggregate are equal to the Spread. If the Board shall determine
      in
      good faith that it is likely that sufficient additional Common Shares could
      be
      authorized for issuance upon exercise in full of the Rights, the thirty (30)
      day
      period set forth above may be extended to the extent necessary, but not more
      than ninety (90) days following the first occurrence of a Triggering Event,
      in
      order that the Company may seek shareholder approval for the authorization
      of
      such additional shares (such period, as it may be extended, the “Substitution
      Period”). To the extent that the Company determines that some action needs to be
      taken pursuant to the first and/or second sentences of this Section 11(a)(iii),
      the Company (x) shall provide, subject to Section 7(e) hereof, that such action
      shall apply uniformly to all outstanding Rights and (y) may suspend the
      exercisability of the Rights until the expiration of the Substitution Period
      in
      order to seek any authorization of additional shares and/or to decide the
      appropriate form of distribution to be made pursuant to such first sentence
      and
      to determine the value thereof. In the event of any such suspension, the Company
      shall issue a public announcement stating that the exercisability of the Rights
      has been temporarily suspended, as well as a public announcement at such time
      as
      the suspension is no longer in effect. For purposes of this Section 11(a)(iii),
      the value of the Common Shares shall be the current per share market price
      (as
      determined pursuant to Section 11(d) hereof) of the Common Shares on the date
      of
      the first occurrence of a Triggering Event.

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    The
      provisions of this Section 11(a)(iii) shall apply only to Common Shares of
      the
      Company and shall not apply to the securities of any other Person.

     

    (b)   In
      case
      the Company shall fix a record date for the issuance of rights, options or
      warrants to all holders of Series A Shares entitling them (for a period expiring
      within 45 calendar days after such record date) to subscribe for or purchase
      Series A Shares (or shares having the same rights, privileges and preferences
      as
      the Series A Shares (“equivalent preferred shares”)) or securities convertible
      into Series A Shares or equivalent preferred shares at a price per Series A
      Share or equivalent preferred share (or having a conversion price per share,
      if
      a security convertible into Series A Shares or equivalent preferred shares)
      less
      than the current per share market price of the Series A Shares (as defined
      in
      Section 11(d) hereof) on such record date, the Purchase Price to be in effect
      after such record date shall be determined by multiplying the Purchase Price
      in
      effect immediately prior to such record date by a fraction, the numerator of
      which shall be the number of Series A Shares outstanding on such record date
      plus the number of Series A Shares that the aggregate offering price of the
      total number of Series A Shares and/or equivalent preferred shares so to be
      offered (and/or the aggregate initial conversion price of the convertible
      securities so to be offered) would purchase at such current market price and
      the
      denominator of which shall be the number of Series A Shares outstanding on
      such
      record date plus the number of additional Series A Shares and/or equivalent
      preferred shares to be offered for subscription or purchase (or into which
      the
      convertible securities so to be offered are initially convertible). In case
      such
      subscription price may be paid in a consideration part or all of which shall
      be
      in a form other than cash, the value of such consideration shall be as
      determined in good faith by the Board, whose determination shall be described
      in
      a statement filed with the Rights Agent and shall be binding on the holders
      of
      the Rights. Series A Shares owned by or held for the account of the Company
      shall not be deemed outstanding for the purpose of any such computation. Such
      adjustments shall be made successively whenever such a record date is fixed;
      and
      in the event that such rights or warrants are not so issued, the Purchase Price
      shall be adjusted to be the Purchase Price that would then be in effect if
      such
      record date had not been fixed.

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    (c)   In
      case
      the Company shall fix a record date for the distribution to all holders of
      the
      Series A Shares (including any such distribution made in connection with a
      consolidation or merger in which the Company is the continuing corporation)
      of
      any debt securities, cash or assets (other than a regular quarterly cash
      dividend or a dividend payable in Series A Shares) or subscription rights or
      warrants (excluding those referred to in Section 11(b) hereof), the Purchase
      Price to be in effect after such record date shall be determined by multiplying
      the Purchase Price in effect immediately prior to such record date by a
      fraction, the numerator of which shall be the current per share market price
      of
      the Series A Shares (as defined in Section 11(d) hereof) on such record date,
      less the fair market value (as determined in good faith by the Board, whose
      determination shall be described in a statement filed with the Rights Agent
      and
      binding on the holders of Rights) of the portion of the assets or debt
      securities so to be distributed or of such subscription rights or warrants
      applicable to one Series A Share and the denominator of which shall be such
      current per share market price of the Series A Shares (as determined pursuant
      to
      Section 11(d) hereof). Such adjustments shall be made successively whenever
      such
      a record date is fixed; and in the event that such distribution is not so made,
      the Purchase Price shall again be adjusted to be the Purchase Price that would
      then be in effect if such record date had not been fixed.

    

    (d)   i)   For
      the
      purpose of any computation hereunder, the “current per share market price” of
      the Common Shares on any date shall be deemed to be the lesser of (x) the
      average of the daily closing prices per Common Share for the 30 consecutive
      Trading Days immediately prior to such date or (y) the average of the daily
      closing prices per Common Share for the 30 consecutive Trading Days immediately
      following such date; provided, however, that in the event that the current
      per
      share market price of the Common Shares is determined during a period following
      the announcement by the issuer of such Common Shares of a dividend or
      distribution on such Common Shares payable in such Common Shares or securities
      convertible into such Common Shares (other than the Rights), or any subdivision,
      combination or reclassification of such Common Shares, and prior to the
      expiration of 20 Trading Days after the ex-dividend date for such dividend
      or
      distribution, then, and in each such case, the current market price shall be
      appropriately adjusted to reflect the current market price per Common Share
      equivalent. The closing price for each day shall be the last sale price, regular
      way, or, in case no such sale takes place on such day, the average of the
      closing bid and asked prices, regular way, in either case as reported in the
      principal consolidated transaction reporting system with respect to securities
      listed on the principal national securities exchange, if any, on which the
      Common Shares are then listed or admitted to trading or, if the Common Shares
      are not listed or admitted to trading on any national securities exchange,
      the
      last quoted price or, if not so quoted, the average of the high bid and low
      asked prices in the over-the-counter market, as reported by the OTC Bulletin
      Board or such other system then in use, or, if on any such date the Common
      Shares are not quoted by any such organization, the average of the closing
      bid
      and asked prices as furnished by a professional market maker making a market
      in
      the Common Shares selected by the Board. The term “Trading Day” shall mean a day
      on which the principal national securities exchange on which the Common Shares
      are listed or traded or are admitted to trading is open for the transaction
      of
      business or, if the Common Shares are not listed or admitted to trading on
      any
      national securities exchange, a Business Day.

    

    (ii)   For
      the
      purpose of any computation hereunder, the “current per share market price” of
      the Series A Shares shall be determined in the same manner as set forth above
      for Common Shares in clause (i) of this Section 11(d). If the current per share
      market price of the Series A Shares cannot be determined in the manner provided
      above, the “current per share market price” of the Series A Shares shall be
      conclusively deemed to be the current per share market price of the Common
      Shares (appropriately adjusted to reflect any stock split, stock dividend or
      similar transaction occurring after the date hereof), multiplied by one hundred.
      If neither the Common Shares nor the Series A Shares are publicly held or so
      listed or traded, “current per share market price” shall mean the fair value per
      share as determined in good faith by the Board, whose determination shall be
      described in a statement filed with the Rights Agent and binding on the holders
      of Rights.

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    (e)   No
      adjustment in the Purchase Price shall be required unless such adjustment would
      require an increase or decrease of at least one percent (1%) in the Purchase
      Price; provided, however, that any adjustments that by reason of this Section
      11(e) are not required to be made shall be carried forward and taken into
      account in any subsequent adjustment. All calculations under this Section 11
      shall be made to the nearest cent or the nearest one-hundredth of a Common
      Share
      or other share or one ten-thousandth of a Series A Share, as the case may be.
      Notwithstanding the first sentence of this Section 11(e), any adjustment
      provided for in this Section 11 shall be made no later than the earlier of
      (i)
      three years from the date of the transaction that requires such adjustment
      or
      (ii) the Final Expiration Date.

    

    (f)   If
      as a
      result of an adjustment made pursuant to Section 11(a) or Section 13(a) hereof,
      the holder of any Right thereafter exercised shall become entitled to receive
      any property, other securities (other than shares of capital stock of the
      Company) or shares of capital stock of the Company other than Series A Shares,
      thereafter the amount of such property, other securities (other than shares
      of
      capital stock of the Company) and the number of such other shares of capital
      stock so receivable upon exercise of any Right (as well as any consideration
      to
      be paid therefor) shall be subject to adjustment from time to time in a manner
      and on terms as nearly equivalent as practicable to the provisions with respect
      to the Series A Shares (and the Purchase Price) contained in this Section 11,
      and the provisions of Sections 7, 9, 10 and 13 with respect to the Series A
      Shares shall apply on like terms to any such property, other securities and
      other shares of capital stock.

    

    (g)   All
      Rights originally issued by the Company subsequent to any adjustment made to
      the
      Purchase Price hereunder shall evidence the right to purchase, at the adjusted
      Purchase Price, the number of Series A Shares purchasable from time to time
      hereunder upon exercise of the Rights, all subject to further adjustment as
      provided herein.

    

    (h)   Unless
      the Company shall have exercised its election as provided in Section 11(i),
      upon
      each adjustment of the Purchase Price as a result of the calculations made
      in
      Sections 11(b) and (c), each Right outstanding immediately prior to the making
      of such adjustment shall thereafter evidence the right to purchase, at the
      adjusted Purchase Price, that number of one one-hundredths of a Series A Share
      (calculated to the nearest one ten-thousandth of a Series A Share) obtained
      by
      (i) multiplying (x) the number of one one-hundredths of a share covered by
      a
      Right immediately prior to this adjustment by (y) the Purchase Price in effect
      immediately prior to such adjustment of the Purchase Price and (ii) dividing
      the
      product so obtained by the Purchase Price in effect immediately after such
      adjustment of the Purchase Price.

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

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

    

    (j)   Irrespective
      of any adjustment or change in the Purchase Price or the number of Series A
      Shares issuable upon the exercise of the Rights, the Right Certificates
      theretofore and thereafter issued may continue to express the Purchase Price
      per
      one one-hundredth of a share and the number of shares that were expressed in
      the
      initial Right Certificates issued hereunder.

    

    (k)   Before
      taking any action that would cause an adjustment reducing the Purchase Price
      below one one-hundredth of the then stated value, if any, of the Series A Shares
      issuable upon exercise of the Rights, the Company shall take any corporate
      action that may, in the opinion of its counsel, be necessary in order that
      the
      Company may validly and legally issue fully paid and nonassessable Series A
      Shares at such adjusted Purchase Price.

    

    (l)   In
      any
      case in which this Section 11 requires that an adjustment in the Purchase Price
      be made effective as of a record date for a specified event, the Company may
      elect to defer until the occurrence of such event the issuing to the holder
      of
      any Right exercised after such record date of the Series A Shares and other
      capital stock or securities of the Company, if any, issuable upon such exercise
      over and above the Series A Shares and other capital stock or securities of
      the
      Company, if any, issuable upon such exercise on the basis of the Purchase Price
      in effect prior to such adjustment; provided, however, that the Company shall
      deliver to such holder a due bill or other appropriate instrument evidencing
      such holder’s right to receive such additional shares upon the occurrence of the
      event requiring such adjustment.

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    (m)   Anything
      in this Section 11 to the contrary notwithstanding, the Company shall be
      entitled to make such reductions in the Purchase Price, in addition to those
      adjustments expressly required by this Section 11, as and to the extent that
      in
      its good faith judgment the Board shall determine to be advisable in order
      that
      any (i) consolidation or subdivision of the Series A Shares, (ii) issuance
      wholly for cash of any of the Series A Shares at less than the current market
      price, (iii) issuance wholly for cash of Series A Shares or securities that
      by
      their terms are convertible into or exchangeable for Series A Shares, (iv)
      dividends on Series A Shares payable in Series A Shares or (v) issuance of
      rights, options or warrants referred to in this Section 11, hereafter made
      by
      the Company to holders of its Series A Shares shall not be taxable to such
      shareholders.

    

    (n)   The
      Company covenants and agrees that it shall not, and shall not permit any
      Subsidiary, at any time after the Separation Date, to (i) consolidate with,
      (ii)
      merge with or into or (iii) sell or transfer, in one or more transactions,
      assets or earning power aggregating more than 50% of the assets or earning
      power
      of the Company and its Subsidiaries (taken as a whole) to, any other Person
      if
      at the time of or immediately after such consolidation, merger or sale there
      are
      any rights, warrants or other instruments or securities outstanding or
      agreements in effect that would substantially diminish or otherwise eliminate
      the benefits intended to be afforded by the Rights.

    

    (o)   The
      Company covenants and agrees that, after the Separation Date, it will not,
      except as permitted by Section 23, Section 24 or Section 27 hereof, take (or
      permit any Subsidiary to take) any action that at the time it is reasonably
      foreseeable will diminish substantially or otherwise eliminate the benefits
      intended to be afforded by the Rights; provided, however, that the issuance
      of
      additional Rights pursuant hereto, including by action of the Board under
      Section 22 hereof, shall not be deemed to violate this Section
      11(o).

    

    (p)   Anything
      in this Agreement to the contrary notwithstanding, in the event that the Company
      shall at any time after the Record Date (i) declare a dividend on the
      outstanding Common Shares payable in Common Shares, (ii) subdivide the
      outstanding Common Shares or (iii) combine the outstanding Common Shares into
      a
      smaller number of shares, the number of Rights associated with each Common
      Share
      then outstanding, or issued or delivered thereafter, shall be proportionately
      adjusted so that the number of Rights thereafter associated (whether before
      or
      after the Separation Date) with each Common Share following any such event
      shall
      equal the result obtained by multiplying the number of Rights associated with
      each Common Share immediately prior to such event by a fraction the numerator
      of
      which shall be the total number of Common Shares outstanding immediately prior
      to the occurrence of the event and the denominator of which shall be the total
      number of Common Shares outstanding immediately following the occurrence of
      such
      event. For purposes of this Section 11(p), any Common Shares issued after the
      Separation Date that were not issued together with a Right (pursuant to the
      Preamble hereto or by action of the Board pursuant to Section 22 hereof) shall
      not be counted as outstanding.

     

    Section
      12.   Certificate
      of Adjusted Purchase Price or Number of Shares.
      Whenever an adjustment is made as provided in Sections 11 and 13 hereof, the
      Company shall (a) promptly prepare a certificate setting forth such adjustment,
      and a brief statement of the facts accounting for such adjustment, (b) promptly
      file with the Rights Agent and with each transfer agent for the Common Shares
      or
      the Series A Shares a copy of such certificate and (c) mail a brief summary
      thereof to each holder of a Right Certificate (or, if prior to the Separation
      Date, to each holder of a certificate representing Common Shares) in accordance
      with Section 25 hereof. The Rights Agent shall be fully protected in relying
      on
      any such certificate and on any adjustment therein contained.

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

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

    

    (a)   In
      the
      event that, following the Shares Acquisition Date, directly or indirectly,
      (x)
      the Company shall consolidate with, or merge with and into, any other Person
      (other than a Subsidiary of the Company in a transaction that complies with
      Section 11(o) hereof) and the Company shall not be the continuing or surviving
      corporation of such consolidation or merger, (y) any Person (other than a
      Subsidiary of the Company in a transaction that complies with Section 11(o)
      hereof) shall consolidate with, or merge with or into, the Company and the
      Company shall be the continuing or surviving corporation of such consolidation
      or merger or any Person or Persons (other than a Subsidiary of the Company
      in a
      transaction that complies with Section 11(o) hereof) shall consummate a share
      exchange with the Company, and, in connection with such consolidation, merger
      or
      share exchange, all or part of the Common Shares shall be changed into or
      exchanged for stock or other securities of any other Person or cash or any
      other
      property or (z) the Company shall sell or otherwise transfer (or one or more
      of
      its Subsidiaries shall sell or otherwise transfer), in a single transaction
      or a
      series of related transactions, assets or earning power aggregating more than
      fifty percent (50%) of the assets or earning power of the Company and its
      Subsidiaries (taken as a whole) to any Person or Persons (other than the Company
      or any Subsidiary of the Company in a transaction that complies with Section
      11(o) hereof), then, and in each such case, proper provision shall be made
      so
      that (i) each holder of a Right, except as provided in Section 7(e) hereof,
      shall thereafter have the right to receive, upon the exercise thereof at the
      then current Purchase Price in accordance with the terms of this Agreement,
      such
      number of validly authorized and issued, fully paid, nonassessable and freely
      tradeable Common Shares of the Principal Party, not subject to any rights of
      first refusal, redemption or repurchase, as shall be equal to the result
      obtained by (1) multiplying the then current Purchase Price by the number of
      one
      one-hundredths of a Series A Share for which a Right is exercisable immediately
      prior to the first occurrence of a Section 13(a) Event (or, if a Section
      11(a)(ii) Event has occurred prior to the Section 13(a) Event, multiplying
      the
      number of such fractional shares for which a Right was exercisable immediately
      prior to the first occurrence of a Section 11(a)(ii) Event by the Purchase
      Price
      immediately prior to such first occurrence), and dividing that product (which,
      following the Section 13(a) Event, shall thereafter be referred to as the
“Purchase Price” for all purposes of this Agreement) by (2) fifty percent (50%)
      of the current per share market price (determined pursuant to Section 11(d)
      hereof) per Common Share (or other securities or property as provided for
      herein) of such Principal Party on the date of consummation of such
      consolidation, merger, sale or transfer; (ii) such Principal Party shall
      thereafter be liable for, and shall assume, by virtue of such consolidation,
      merger, sale or transfer, all the obligations and duties of the Company pursuant
      to this Agreement; (iii) the term “Company” shall thereafter be deemed to refer
      to such Principal Party, it being specifically intended that the provisions
      of
      Section 11 hereof shall apply only to such Principal Party following the first
      occurrence of a Section 13(a) Event; (iv) such Principal Party shall take such
      steps (including, but not limited to, the reservation of a sufficient number
      of
      its Common Shares) in connection with the consummation of any such transaction
      as may be necessary to assure that the provisions hereof shall thereafter be
      applicable, as nearly as reasonably may be, in relation to its Common Shares
      thereafter deliverable upon the exercise of the Rights; and (v) the provisions
      of Sections 11(a)(ii) and 11(a)(iii) hereof shall thereafter be of no effect
      following the first occurrence of a Section 13(a) Event.

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

    (b)   “Principal
      Party” shall mean:

    

    (i)   in
      the
      case of any transaction described in clause (x) or (y) of the first sentence
      of
      Section 13(a), the Person that is the issuer of any securities into which Common
      Shares of the Company are converted in such merger or consolidation, and if
      no
      securities are so issued, the Person that is the other party to such merger
      or
      consolidation; and

    

    (ii)   in
      the
      case of any transaction described in clause (z) of the first sentence of Section
      13(a), the Person that is the party receiving the greatest portion of the assets
      or earning power transferred pursuant to such transaction or transactions;
      provided, however, that in any such case, (1) if the Common Shares of such
      Person are not at such time and have not been continuously over the preceding
      twelve (12) month period registered under Section 12 of the Exchange Act, and
      such Person is a direct or indirect Subsidiary of another Person the Common
      Shares of which are and have been so registered, “Principal Party” shall refer
      to such other Person; and (2) in case such Person is a Subsidiary, directly
      or
      indirectly, of more than one Person, the Common Shares of two or more of which
      are and have been so registered, “Principal Party” shall refer to whichever of
      such Persons is the issuer of the Common Shares having the greatest aggregate
      market value.

    

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

    

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

    

    (ii)   deliver
      to holders of the Rights historical financial statements for the Principal
      Party
      and each of its Affiliates that comply in all respects with the requirements
      for
      registration on Form 10 under the Exchange Act. The provisions of this Section
      13 shall similarly apply to successive mergers or consolidations or sales or
      other transfers. In the event that one of the transactions described in Section
      13(a) hereof shall occur at any time after the occurrence of a transaction
      described in Section 11(a)(ii) hereof, the Rights that have not theretofore
      been
      exercised shall thereafter become exercisable in the manner described in Section
      13(a).

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

    Section
      14.   Fractional
      Rights and Fractional Shares.

    

    (a)   The
      Company shall not be required to issue fractions of Rights, except prior to
      the
      Separation Date as provided in Section 11(p) hereof, or to distribute Right
      Certificates that evidence fractional Rights. In lieu of such fractional Rights,
      there shall be paid to the registered holders of the Right Certificates with
      regard to which such fractional Rights would otherwise be issuable an amount
      in
      cash equal to the same fraction of the current market value of a whole Right.
      For the purposes of this Section 14(a), the current market value of a whole
      Right shall be the closing price of the Rights for the Trading Day immediately
      prior to the date on which such fractional Rights would have been otherwise
      issuable. The closing price for any day shall be the last sale price, regular
      way, or, in case no such sale takes place on such day, the average of the
      closing bid and asked prices, regular way, in either case as reported in the
      principal consolidated transaction reporting system with respect to securities
      listed on the principal national securities exchange, if any, on which the
      Rights are then listed or admitted to trading or, if the Rights are not listed
      or admitted to trading on any national securities exchange, the last quoted
      price or, if not so quoted, the average of the high bid and low asked prices
      in
      the over-the-counter market, as reported by the OTC Bulletin Board or such
      other
      system then in use or, if on any such date the Rights are not quoted by any
      such
      organization, the average of the closing bid and asked prices as furnished
      by a
      professional market maker making a market in the Rights selected by the Board.
      If on any such date the Rights are not publicly held or so listed or traded,
      the
      current market value of a whole Right shall mean the fair value of a whole
      Right
      as determined in good faith by the Board, whose determination shall be described
      in a statement filed with the Rights Agent and binding on the holders of
      Rights.

    

    (b)   The
      Company shall not be required to issue fractions of Series A Shares (other
      than
      fractions that are integral multiples of one one-hundredth of a Series A Share)
      upon exercise of the Rights or to distribute certificates that evidence
      fractional Series A Shares (other than fractions that are integral multiples
      of
      one one-hundredth of a Series A Share). Fractions of Series A Shares in integral
      multiples of one one-hundredth of a Series A Share may, at the election of the
      Company, be evidenced by depositary receipts, pursuant to an appropriate
      agreement between the Company and a depositary selected by it, provided that
      such agreement shall provide that the holders of such depositary receipts shall
      have all the rights, privileges and preferences to which they are entitled
      as
      beneficial owners of the Series A Shares. In lieu of fractional Series A Shares
      that are not integral multiples of one one-hundredth of a Series A Share, the
      Company shall pay to the registered holders of Right Certificates at the time
      such Rights are exercised as herein provided an amount in cash equal to the
      same
      fraction of the current market value of one Series A Share. For purposes of
      this
      Section 14(b), the current market value of a Series A Share shall be the closing
      price of a Series A Share (as determined pursuant to Section 11(d)(ii) hereof)
      for the Trading Day immediately prior to the date of such exercise.

    

    (c)   Following
      the occurrence of a Triggering Event, the Company shall not be required to
      issue
      fractions of Common Shares upon exercise of the Rights or to distribute
      certificates that evidence fractional Common Shares. In lieu of fractional
      Common Shares, the Company may pay to the registered holders of Right
      Certificates at the time such Rights are exercised as herein provided an amount
      in cash equal to the same fraction of the current market value of one Common
      Share. For purposes of this Section 14(c), the current market value of one
      Common Share shall be the closing price of one Common Share (as determined
      pursuant to Section 11(d)(1) hereof) for the Trading Day immediately prior
      to
      the date of such exercise.

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

    (d)   The
      holder of a Right, by the acceptance of the Rights, expressly waives his right
      to receive any fractional Rights or any fractional shares upon exercise of
      a
      Right, except as otherwise set forth herein.

     

    Section
      15.   Rights
      of Action.
      All
      rights of action in respect of this Agreement, excepting the rights of action
      given to the Rights Agent under Section 18 hereof, are vested in the respective
      registered holders of the Right Certificates (and, prior to the Separation
      Date,
      the registered holders of any certificate representing Common Shares); and
      any
      registered holder of any Right Certificate (or, prior to the Separation Date,
      of
      any other certificate representing Common Shares), without the consent of the
      Rights Agent or of the holder of any other Right Certificate (or, prior to
      the
      Separation Date, of the Common Shares), may, in his own behalf and for his
      own
      benefit, enforce, and may institute and maintain any suit, action or proceeding
      against the Company to enforce, or otherwise act in respect of, his right to
      exercise the Rights evidenced by such Right Certificate in the manner provided
      in such Right Certificate and in this Agreement. Without limiting the foregoing
      or any remedies available to the holders of Rights, it is specifically
      acknowledged that the holders of Rights would not have an adequate remedy at
      law
      for any breach of this Agreement and will be entitled to specific performance
      of
      the obligations under, and injunctive relief against actual or threatened
      violations of the obligations of any Person subject to, this
      Agreement.

     

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

    

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

    

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

    

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

    

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

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

    Section
      17.   Right
      Certificate Holder Not Deemed a Shareholder.
      No
      holder, as such, of any Right Certificate shall be entitled to vote, receive
      dividends or be deemed for any purpose the holder of the Series A Shares, or
      any
      other securities of the Company, that may at any time be issuable on the
      exercise of the Rights represented thereby, nor shall anything contained herein
      or in any Right Certificate be construed to confer upon the holder of any Right
      Certificate, as such, any of the rights of a shareholder of the Company or
      any
      right to vote for the election of directors or upon any matter submitted to
      shareholders at any meeting thereof, or to give or withhold consent to any
      corporate action, or to receive notice of meetings or other actions affecting
      shareholders (except as provided in Section 24 hereof), or to receive dividends
      or subscription rights, or otherwise, until the Right or Rights evidenced by
      such Right Certificate shall have been exercised in accordance with the
      provisions hereof.

     

    Section
      18.   Concerning
      the Rights Agent.

    

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

    

    (b)   The
      Rights Agent shall be fully indemnified against, shall be protected from, and
      shall incur no liability or expense (including without limitation attorneys’
fees and expenses) for, or in respect of, any action taken, suffered or omitted
      by it in connection with, its administration of this Agreement in reliance
      upon
      any Right Certificate or certificate for the Series A Shares or Common Shares
      or
      for other securities of the Company, instrument of assignment or transfer,
      power
      of attorney, endorsement, affidavit, letter, notice, direction, instruction,
      consent, certificate, statement or other paper or document believed by it to
      be
      genuine and to be signed, executed and, where necessary, verified or
      acknowledged, by the proper person or persons, or otherwise upon the advice
      of
      its counsel as set forth in Section 20 hereof.

    

    (c)   Notwithstanding
      anything in this Agreement to the contrary, in no event shall the Rights Agent
      be liable for special, indirect or consequential loss or damage of any kind
      whatsoever (including but not limited to lost profits), even if the Rights
      Agent
      has been advised of the likelihood of such loss or damage and regardless of
      the
      form of the action, and the Company agrees to indemnify the Rights Agent and
      to
      hold it harmless against any loss, liability or expense incurred as a result
      of
      claims for special, indirect or consequential loss or damages of any kind
      whatsoever.

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

    Section
      19.   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 shall be a party, or any corporation succeeding to the corporate trust
      business of the Rights Agent or any successor Rights Agent, shall be the
      successor to the Rights Agent under this Agreement without the execution or
      filing of any paper or any further act on the part of any of the parties hereto;
      provided, however, that such corporation would be eligible for appointment
      as a
      successor Rights Agent under the provisions of Section 21 hereof. In case at
      the
      time such successor Rights Agent shall succeed to the agency created by this
      Agreement, any of the Right Certificates shall have been countersigned but
      not
      delivered, any such successor Rights Agent may adopt the countersignature of
      the
      predecessor Rights Agent and deliver such Right Certificates so countersigned;
      and in case at that time any of the Right Certificates shall not have been
      countersigned, any successor Rights Agent may countersign such Right
      Certificates either in the name of the predecessor Rights Agent or in the name
      of the successor Rights Agent; and in all such cases such Right Certificates
      shall have the full force provided in the Right Certificates and in this
      Agreement.

    

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

     

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

    

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

    

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

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

    (c)   The
      Rights Agent shall be liable hereunder to the Company and any other Person
      only
      for its own negligence or willful misconduct; provided, however, that in no
      event shall the Rights Agent be liable for special, indirect or consequential
      loss or damages of any kind whatsoever.

    

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

    

    (e)   The
      Rights Agent shall not be under any responsibility in respect of the validity
      of
      this Agreement or the execution and delivery hereof (except the due execution
      hereof by the Rights Agent) or in respect of the validity or execution of any
      Right Certificate (except its countersignature thereof); nor shall it be
      responsible for any breach by the Company of any covenant or condition contained
      in this Agreement or in any Right Certificate; nor shall it be responsible
      for
      any adjustment required under the provisions of Section 11 or Section 13 hereof
      or responsible for the manner, method or amount of any such adjustment or the
      ascertaining of the existence of facts that would require any such adjustment
      (except with respect to the exercise of Rights evidenced by Right Certificates
      after actual notice of any such adjustment); nor shall it by any act hereunder
      be deemed to make any representation or warranty as to the authorization or
      reservation of any Series A Shares to be issued pursuant to this Agreement
      or
      any Right Certificate or as to whether any Series A Shares will, when issued,
      be
      validly authorized and issued, fully paid and nonassessable.

    

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

    

    (g)   The
      Rights Agent is hereby authorized and directed to accept instructions with
      respect to the performance of its duties hereunder from any one of the Chairman
      of the Board, the Chief Executive Officer, the President, any Vice President,
      the Secretary or the Treasurer of the Company, and to apply to such officers
      for
      advice or instructions in connection with its duties, and it shall not be liable
      for any action taken or suffered to be taken by it in good faith in accordance
      with instructions of any such officer or for any delay in acting while waiting
      for those instructions.

    

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

    

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

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

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

    

    (k)   If,
      with
      respect to any Right Certificate surrendered to the Rights Agent for exercise
      or
      transfer, the certificate attached to the form of assignment or form of election
      to purchase, as the case may be, has either not been completed or indicates
      an
      affirmative response to clause 1 and/or 2 on such certificate attached to the
      form of assignment or form of election to purchase, the Rights Agent shall
      not
      take any further action with respect to such requested exercise or transfer
      without first consulting with the Company.

     

    Section
      21.   Change
      of Rights Agent.
      The
      Rights Agent or any successor Rights Agent may resign and be discharged from
      its
      duties under this Agreement upon 30 days’ notice in writing mailed to the
      Company and to each transfer agent of the Common Shares and Series A Shares
      by
      registered or certified mail. In such event, the Company shall give written
      notice of such resignation to the holders of the Right Certificates by
      first-class mail. The Company may remove the Rights Agent or any successor
      Rights Agent upon 30 days’ notice in writing, mailed to the Rights Agent or
      successor Rights Agent, as the case may be, and to each transfer agent of the
      Common Shares and Series A Shares by registered or certified mail, and to the
      holders of the Right Certificates by first-class mail. If the Rights Agent
      shall
      resign or be removed or shall otherwise become incapable of acting, the Company
      shall appoint a successor to the Rights Agent. If the Company shall fail to
      make
      such appointment within a period of 30 days after giving notice of such removal
      or after it has been notified in writing of such resignation or incapacity
      by
      the resigning or incapacitated Rights Agent or by the holder of a Right
      Certificate (who shall, with such notice, submit his Right Certificate for
      inspection by the Company), then the registered holder of any Right Certificate
      may apply to any court of competent jurisdiction for the appointment of a new
      Rights Agent. Any successor Rights Agent, whether appointed by the Company
      or by
      such a court, shall be a corporation organized and doing business under the
      laws
      of the United States or of any state of the United States, in good standing,
      that is authorized under such laws to exercise corporate trust powers and is
      subject to supervision or examination by federal or state authority and that
      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 shall be
      vested with the same powers, rights, duties and responsibilities as if it had
      been originally named as Rights Agent without further act or deed; but the
      predecessor Rights Agent shall deliver and transfer to the successor Rights
      Agent any property at the time held by it hereunder, and execute and deliver
      any
      further assurance, conveyance, act or deed necessary for the purpose. Not later
      than the effective date of any such appointment the Company shall file notice
      thereof in writing with the predecessor Rights Agent and each transfer agent
      of
      the Common Shares and Series A Shares, and mail a notice thereof in writing
      to
      the registered holders of the Right Certificates. Failure to give any notice
      provided for in this Section 21, however, or any defect therein, shall not
      affect the legality or validity of the resignation or removal of the Rights
      Agent or the appointment of the successor Rights Agent, as the case may
      be.

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

    Section
      22.   Issuance
      of New Right Certificates.
      Notwithstanding any of the provisions of this Agreement or of the Rights to
      the
      contrary, the Company may, at its option, issue new Right Certificates
      evidencing Rights in such form as may be approved by the Board to reflect any
      adjustment or change in the Purchase Price per share and the number or kind
      or
      class of shares or other securities or property purchasable under the Right
      Certificates made in accordance with the provisions of this Agreement. In
      addition, the Company may, if deemed necessary or appropriate by the Board,
      issue Right Certificates in connection with the issuance or sale of Common
      Shares following the Separation Date.

     

    Section
      23.   Redemption.

    

    (a)   The
      Board
      may, at its option, at any time prior to such time as any Person becomes an
      Acquiring Person, redeem all but not less than all the then outstanding Rights
      at a redemption price of One Cent ($0.01) per Right, appropriately adjusted
      to
      reflect any stock split, stock dividend or similar transaction occurring after
      the date hereof (such redemption price being hereinafter referred to as the
      “Redemption Price”). The redemption of the Rights by the Board may be made
      effective at such time, on such basis and with such conditions as the Board,
      in
      its sole discretion, may establish.

    

    (b)   Immediately
      upon the action of the Board ordering the redemption of the Rights and without
      any further action and without any notice, the right to exercise the Rights
      will
      terminate and the only right thereafter of the holders of Rights shall be to
      receive the Redemption Price. The Company shall promptly give public notice
      of
      any such redemption; provided, however, that the failure to give, or any defect
      in, any such notice shall not affect the validity of such redemption. Within
      10
      days after such action of the Board ordering the redemption of the Rights,
      the
      Company shall mail a notice of redemption to the holders of the then outstanding
      Rights by mailing such notice to all such holders at their last addresses as
      they appear upon the registry books of the Rights Agent or, prior to the
      Separation Date, on the registry books of the Transfer Agent for the Common
      Shares. Any notice that is mailed in the manner herein provided shall be deemed
      given, whether or not the holder receives the notice. Each such notice of
      redemption shall state the method by which the payment of the Redemption Price
      will be made. Neither the Company nor any of its Affiliates or Associates may
      redeem, acquire or purchase for value any Rights at any time in any manner
      other
      than that specifically set forth in this Section 23 or in Section 24 hereof,
      and
      other than in connection with the purchase of Common Shares prior to the
      Separation Date.

     

    Section
      24.   Exchange.

    

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

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

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

    

    (c)   In
      any
      exchange pursuant to this Section 24, the Company, at its option, may substitute
      Series A Shares for Common Shares at the rate of one one-hundredth of a Series
      A
      Share for each Right.

    

    (d)   The
      Company shall not be required to issue fractions of Common Shares or to
      distribute certificates that evidence fractional Series A Shares (except as
      hereinafter provided) or fractional Common Shares, but if the exchange is for
      Series A Shares, the Company shall be obligated to issue fractional shares
      so
      long as any fraction of a Series A Share so to be issued is at least equal
      to
      one one-hundredth of a Series A Share. In lieu of such fractional shares, the
      Company shall pay to the registered holders of the Rights Certificates with
      regard to which such fractional shares would otherwise be issuable an amount
      in
      cash equal to the same fraction of the current market value of a whole share.
      For the purposes of this Section 24(d), (i) the current market value of a whole
      Common Share shall be the per share market price determined as of the day
      immediately following the day of the public announcement by the Company that
      an
      exchange is to be effected pursuant to this Section 24 and (ii) the current
      market value of a Series A Share or fraction of a Series A Share shall be the
      current market value on such day of a Series A Share (or fraction of a Series
      A
      Share) as determined in accordance with Section 11(d)(ii) hereof.

     

    Section
      25.   Notice
      of Certain Events.

    

    (a)   In
      case
      the Company shall propose, at any time after the Separation Date, (i) to pay
      any
      dividend payable in stock of any class to the holders of Series A Shares or
      to
      make any other distribution to the holders of Series A Shares (other than a
      regular quarterly cash dividend), (ii) to offer to the holders of its Series
      A
      Shares rights or warrants to subscribe for or to purchase any additional Series
      A Shares or shares of stock of any class or any other securities, rights or
      options, (iii) to effect any reclassification of Series A Shares (other than
      a
      reclassification involving only the subdivision of outstanding Series A Shares),
      (iv) to effect any consolidation or merger into or with, or to effect any sale
      or other transfer (or to permit one or more of its Subsidiaries to effect any
      sale or other transfer), in one or more transactions, of more than fifty percent
      (50%) of the assets or earning power of the Company and its Subsidiaries (taken
      as a whole) to any other Person or (v) to effect the liquidation, dissolution
      or
      winding up of the Company, then, in each such case, the Company shall give
      to
      each holder of a Right Certificate, to the extent feasible and in accordance
      with Section 26 hereof, a notice of such proposed action, which shall specify
      the record date for the purposes of such stock dividend, or distribution of
      rights or warrants, or the date on which such reclassification, consolidation,
      merger, sale, transfer, liquidation, dissolution or winding up is to take place
      and the date of participation therein by the holders of the Common Shares and/or
      Series A Shares, if any such date is to be fixed, and such notice shall be
      so
      given in the case of any action covered by clause (i) or (ii) above at least
      20
      days prior to the record date for determining holders of the Series A Shares
      for
      purposes of such action, and in the case of any such other action, at least
      20
      days prior to the date of the taking of such proposed action or the date of
      participation therein by the holders of the Common Shares and/or Series A
      Shares, whichever shall be the earlier.

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

    (b)   In
      case
      of the occurrence of a Section 11(a)(ii) Event, then, in any such case, (i)
      the
      Company shall as soon as practicable thereafter give to each holder of a Right
      Certificate, to the extent feasible and in accordance with Section 26 hereof,
      a
      notice of the occurrence of such event, which shall specify the event and the
      consequences of the event to holders of Rights under Section 11(a)(ii), and
      (ii)
      all references in the preceding paragraph to Series A Shares shall be deemed
      thereafter to refer to Common Shares and/or, if appropriate, other
      securities.

     

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

    

    OrthoLogic
      Corp.

    1275
      W.
      Washington St.

    Tempe,
      Arizona 85281

    Attention:
      Chief Executive Officer

    

    Subject
      to the provisions of Section 21 hereof, any notice or demand authorized by
      this
      Agreement to be given or made by the Company or by the holder of any Right
      Certificate to or on the Rights Agent shall be sufficiently given or made if
      sent by first-class mail, postage prepaid, addressed (until another address
      is
      filed in writing with the Company) as follows:

    

    The
      Bank
      of New York

    101
      Barclay Street

    New
      York,
      NY 10286

    Attention:
      Stock Transfer Administration - Steve Myers

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

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

     

    Section
      27.   Supplements
      and Amendments.
      Prior
      to the Separation Date and subject to the penultimate sentence of this Section
      27, the Company may and the Rights Agent shall, if the Company so directs,
      supplement or amend any provision of this Agreement without the approval of
      any
      holders of certificates representing Common Shares. From and after the
      Separation Date and subject to the penultimate sentence of this Section 27,
      the
      Company may and the Rights Agent shall, if the Company shall so direct,
      supplement or amend this Agreement without the approval of any holders of Right
      Certificates in order (i) to cure any ambiguity, (ii) to correct or supplement
      any provision contained herein that may be defective or inconsistent with any
      other provisions herein, (iii) to shorten or lengthen any time period hereunder
      or (iv) to change or supplement the provisions hereunder in any manner that
      the
      Company may deem necessary or desirable and that shall not adversely affect
      the
      interests of the holders of Right Certificates (other than an Acquiring Person
      or an Affiliate or Associate of an Acquiring Person); provided that, from and
      after the Separation Date this Agreement may not be supplemented or amended
      to
      lengthen, pursuant to clause (iii) of this sentence, (A) a time period relating
      to when the Rights may be redeemed at such time as the Rights are not then
      redeemable, or (B) any other time period unless such lengthening is for the
      purpose of protecting enhancing or clarifying the rights of, and/or the benefits
      to, the holders of Rights. Upon the delivery of a certificate from an
      appropriate officer of the Company, which states that the proposed supplement
      or
      amendment is in compliance with the terms of this Section 27, the Rights Agent
      shall execute such supplement or amendment. Notwithstanding anything contained
      in this Agreement to the Contrary, no supplement or amendment shall be made
      which changes the Redemption Price. Prior to the Separation Date, the interests
      of the holders of Rights shall be deemed coincident with the interests of the
      holders of Common Shares.

     

    Section
      28.   Successors;
      Assignment.
      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. This Agreement shall extend to and shall
      be
      binding upon the parties hereto and their respective successors and assigns;
      provided however, that this Agreement shall not be assignable by either party
      without prior written consent of the other party; and provided, further, that
      (a) the foregoing proviso shall not apply to assignments by the Rights Agent
      to
      an affiliate or subsidiary of the Rights Agent and (b) any reorganization,
      merger, consolidation, sale of assets or other form of business combination
      by
      the Rights Agent shall not be deemed to constitute an assignment of this
      Agreement.

     

    Section
      29.   Benefits
      of this Agreement.
      Nothing
      in this Agreement shall be construed to give to any person or corporation other
      than the Company, the Rights Agent and the registered holders of the Right
      Certificates (and, prior to the Separation Date, the Common Shares) any legal
      or
      equitable right, remedy or claim under this Agreement; but this Agreement shall
      be for the sole and exclusive benefit of the Company, the Rights Agent and
      the
      registered holders of the Right Certificates (and, prior to the Separation
      Date,
      the Common Shares).

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

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

     

    Section
      31.   Governing
      Law.
      This
      Agreement and each Right Certificate issued hereunder shall be deemed to be
      a
      contract made under the laws of the State of Delaware, and for all purposes
      shall be governed by and construed in accordance with the laws of such State
      applicable to contracts made and to be performed entirely within such State;
      except for Sections 18, 19, 20 and 21 hereof which for all purposes shall be
      governed by and construed under the laws of the State of New York. Any provision
      of this Agreement and each such Right Certificate relating to the internal
      corporate governance or other affairs of the Company shall be governed by and
      construed in accordance with the laws of the State of Delaware.

     

    Section
      32.   Special,
      Indirect and Consequential Damages.
      Neither
      party to this Agreement shall be liable to the other party for special, indirect
      or consequential loss or related damages.

     

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

     

    Section
      34.   Descriptive
      Headings.
      Descriptive headings of the several Sections of this Agreement are inserted
      for
      convenience of reference only and shall not control or affect the meaning or
      construction of any of the provisions hereof.

    
      
        
        

      

      
        -30-

        
          

        

      

      
        
        

      

    

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

    

    
      	 	
              ORTHOLOGIC
                CORP.

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/
                John M. Holliman, III

            
	 	
               

            	
              Name:
                John M. Holliman, III

            
	 	
               

            	
              Title:  
                Executive Chairman

            
	 	 	 
	 	 	 
	 	
              THE
                BANK OF NEW YORK

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/
                Stacy Dawkins

            
	 	
               

            	
              Name:
                Stacy Dawkins

            
	 	
               

            	
              Title: 
                AVP

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    AMENDED
      AND RESTATED

    

    CERTIFICATE
      OF DESIGNATION

    

    OF

    

    SERIES
      A
      PREFERRED STOCK

    

    OF

     

    ORTHOLOGIC
      CORP.

     

    The
      undersigned, being the Executive Chairman of OrthoLogic Corp. (the
“Corporation”), a corporation organized and existing under the Delaware General
      Corporation Law, hereby certifies that, pursuant to the provisions of Section
      151 of the Delaware General Corporation Law, the Board of Directors of the
      Corporation duly adopted the following resolution on June 19, 2007, which
      resolution remains in full force and effect as of the date hereof: 

    

    Series
      A Preferred Stock

    

    RESOLVED,
      that the Board of Directors of the Corporation, pursuant to authority vested
      in
      it by the provisions of the Corporation’s Amended and Restated Certificate of
      Incorporation (the “Charter”),
      hereby authorize and direct an increase in the Series A Preferred Stock of
      the
      Corporation and amends the number of shares of such series and restates the
      powers, designations, preferences and relative, participating, optional or
      other
      rights of such series, and the qualifications, limitations or restrictions
      thereof, as follows:

    

    The
      first
      series of Preferred Stock, par value $.0005 per share, of the Corporation shall
      be, and hereby is, designated “Series A Preferred Stock” (the “Series
      A Shares”),
      and
      the number of shares constituting such series shall be One Million (1,000,000).
      The relative rights and preferences of the Series A Shares shall be as
      follows:

    

    Section
      A.   Dividends
      and Distributions.

    

    (1)   Subject
      to the prior and superior rights of the holders of any shares of any series
      of
      stock prior and superior to the Series A Shares with respect to dividends,
      the
      holders of Series A Shares, in preference to the holders of Common Stock, par
      value $.0005 per share, of the Corporation (the “Common
      Stock”)
      and of
      any other junior stock, shall be entitled to receive, when and as declared
      by
      the Board of Directors, out of any funds lawfully available therefor, cash
      dividends thereon, payable quarterly, from the date of issuance thereof, upon
      the tenth days of January, April, July and October in each year (each such
      date
      being referred to herein as a “Quarterly
      Dividend Payment Date”),
      commencing on the first Quarterly Dividend Payment Date after the first issuance
      of a Series A Share, in an amount per share (rounded to the nearest cent) equal
      to the greater of (a) $10.00 or (b) subject to the provisions for adjustment
      hereinafter set forth, 100 times the aggregate per share amount of all cash
      dividends, and 100 times the aggregate per share amount (payable in kind) of
      all
      non-cash dividends or other distributions, other than a dividend or distribution
      payable in shares of Common Stock or a subdivision of the outstanding shares
      of
      Common Stock (by reclassification or otherwise), declared on the Common Stock
      since the immediately preceding Quarterly Dividend Payment Date or, with respect
      to the first Quarterly Dividend Payment Date, since the first issuance of any
      Series A Share. In the event the Corporation shall at any time after July 2,
      2007 (i) declare any dividend on the Common Stock payable in shares of Common
      Stock, (ii) subdivide the outstanding Common Stock or (iii) combine the
      outstanding Common Stock into a smaller number of shares, then in each such
      case
      the amounts to which holders of Series A Shares were entitled immediately prior
      to such event under clause (a) and clause (b) of the preceding sentence shall
      be
      adjusted by multiplying each such amount by a fraction the numerator of which
      is
      the number of shares of Common Stock outstanding immediately after such event
      and the denominator of which is the number of shares of Common Stock that were
      outstanding immediately prior to such event.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (2)   The
      Corporation shall declare a dividend or distribution on the Series A Shares
      as
      provided in paragraph (1) of this Section immediately after it declares a
      dividend or distribution on the Common Stock (other than a dividend or
      distribution payable in shares of Common Stock); provided,
      however,
      that,
      in the event no dividend or distribution shall have been declared on the Common
      Stock during the period between any Quarterly Dividend Payment Date and the
      next
      subsequent Quarterly Dividend Payment Date, a dividend of $10.00 per share
      on
      the Series A Shares shall nevertheless be payable on such subsequent Quarterly
      Dividend Payment Date; and provided further,
      that
      nothing contained in this paragraph (2) shall be construed so as to conflict
      with any provision relating to the declaration of dividends contained in the
      Charter. 

    

    (3)   Dividends
      shall begin to accrue and be cumulative on outstanding Series A Shares from
      the
      Quarterly Dividend Payment Date next preceding the date of issue of such Series
      A Shares, unless the date of issue of such shares is prior to the record date
      for the first Quarterly Dividend Payment Date, in which case dividends on such
      shares shall begin to accrue from the date of issue of such shares, or unless
      the date of issue is a Quarterly Dividend Payment Date or is a date after the
      record date for the determination of holders of Series A Shares entitled to
      receive a quarterly dividend and before such Quarterly Dividend Payment Date,
      in
      either of which events such dividends shall begin to accrue and be cumulative
      from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall
      not bear interest. Dividends paid on the Series A Shares in an amount less
      than
      the total amount of such dividends at the time accrued and payable on such
      shares shall be allocated pro rata on a share-by-share basis among all such
      shares at the time outstanding. The Board of Directors may fix a record date
      for
      the determination of holders of Series A Shares entitled to receive payment
      of a
      dividend or distribution declared thereon.

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

    Section
      B.   Redemption. The
      Series A Shares are not redeemable.

    

    Section
      C.   Liquidation,
      Dissolution or Winding Up.
      In the
      event of the voluntary or involuntary liquidation of the Corporation the
“preferential amount” that the holders of the Series A Shares shall be entitled
      to receive out of the assets of the Corporation shall be $100.00 per share
      plus
      all accrued and unpaid dividends thereon.

    

    (1)   Upon
      any
      liquidation, dissolution or winding up of the Corporation, no distribution
      shall
      be made to the holders of shares of stock ranking junior (upon liquidation,
      dissolution or winding up) to the Series A Shares unless, prior thereto, the
      holders of Series A Shares shall have received $100.00 per share, plus an amount
      equal to accrued and unpaid dividends and distributions thereon, whether or
      not
      declared, to the date of such payment (the “Series
      A Liquidation Preference”).
      Following the payment of the full amount of the Series A Liquidation Preference,
      no additional distributions shall be made to the holders of Series A Shares
      unless, prior thereto, the holders of shares of common stock shall have received
      an amount per share (the “Common
      Adjustment”)
      equal
      to the quotient obtained by dividing (i) the Series A Liquidation Preference
      by
      (ii) 100 (as appropriately adjusted as set forth in paragraph (3) of this
      Section C to reflect such events as stock splits, stock dividends and
      recapitalizations with respect to the Common Stock) (such number in clause
      (ii),
      the “Adjustment
      Number”).
      Following the payment of the full amount of the Series A Liquidation Preference
      and the Common Adjustment in respect of all outstanding Series A Shares and
      Common Stock, respectively, holders of Series A Shares and holders of shares
      of
      Common Stock shall receive their ratable and proportionate share of the
      remaining assets to be distributed in the ratio of the Adjustment Number to
      one
      with respect to the Series A Shares and Common Stock, on a per share basis,
      respectively.

    

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

    

    (3)   In
      the
      event the Corporation shall at any time after July 2, 2007 (i) declare any
      dividend on Common Stock payable in shares of Common Stock, (ii) subdivide
      the
      outstanding Common Stock or (iii) combine the outstanding Common Stock into
      a
      smaller number of shares, then in each such case the Adjustment Number in effect
      immediately prior to such event shall be adjusted by multiplying such Adjustment
      Number by a fraction, the numerator of which is the number of shares of Common
      Stock outstanding immediately after such event and the denominator of which
      is
      the number of shares of Common Stock that were outstanding immediately prior
      to
      such event.

    

    Section
      D.   Sinking
      Fund. The
      Preferred Shares shall not be entitled to the benefit of any sinking fund for
      the redemption or purchase of such shares.

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

    Section
      E.   Conversion.

    

    (1)   Subject
      to paragraph (2) of this Section E, the Preferred Shares shall not be
      convertible.

    

    (2)   In
      case
      the Corporation shall enter into any consolidation, merger, combination or
      other
      transaction in which the shares of Common Stock are exchanged for or changed
      into other stock or securities, cash and/or any other property, then in any
      such
      case the Series A Shares shall at the same time be similarly exchanged or
      changed in an amount per share (subject to the provision for adjustment
      hereinafter set forth) equal to 100 times the aggregate amount of stock,
      securities, cash and/or any other property (payable in kind), as the case may
      be, into which or for which each share of Common Stock is changed or exchanged.
      In the event the Corporation shall at any time declare or pay any dividend
      on
      the Common Stock payable in shares of Common Stock, or effect a subdivision
      or
      combination or consolidation of the outstanding shares of Common Stock (by
      reclassification or otherwise) into a greater or lesser number of shares of
      Common Stock, then in each such case the amount set forth in the preceding
      sentence with respect to the exchange or change of Series A Shares shall be
      adjusted by multiplying such amount by a fraction, the numerator of which is
      the
      number of shares of Common Stock outstanding immediately after such event,
      and
      the denominator of which is the number of shares of Common Stock that were
      outstanding immediately prior to such event. 

    

    Section
      F.   Voting
      Rights.

    

    (1)   The
      holders of Series A Shares shall have no voting rights except as provided by
      Delaware statutes or by paragraph (2) of this Section F.

    

    (2)   So
      long
      as any Series A Shares shall be outstanding, and in addition to any other
      approvals or consents required by law, without the consent of the holders of
      66-
      2/3% of the Series A Shares outstanding as of a record date fixed by the Board
      of Directors, given either by their affirmative vote at a special meeting called
      for that purpose, or, if permitted by law, in writing without a meeting:

    

    (i)   The
      Corporation shall not sell, transfer or lease all or substantially all the
      properties and assets of the Corporation; provided,
      however,
      that
      nothing herein shall require the consent of the holders of Series A Shares
      for
      or in respect of the creation of any mortgage, pledge, or other lien upon all
      or
      any part of the assets of the Corporation. 

    

    (ii)   The
      Corporation shall not effect a merger or consolidation with any other
      corporation or corporations unless as a result of such merger or consolidation
      and after giving effect thereto holders of Series A Shares are entitled to
      receive a per share amount and type of consideration equal to 100 times the
      per
      share amount and type of consideration received by holders of shares of Common
      Stock, or (1) either (A) the Corporation shall be the surviving corporation
      or
      (B) if the Corporation is not the surviving corporation, the successor
      corporation shall be a corporation duly organized and existing under the laws
      of
      any state of the United States of America or the District of Columbia, and
      all
      obligations of the Corporation with respect to the Series A Shares shall be
      assumed by such successor corporation, (2) the Series A Shares then outstanding
      shall continue to be outstanding and (3) there shall be no alteration or change
      in the designation or the preferences, relative rights or limitations applicable
      to outstanding Series A Shares prejudicial to the holders
      thereof.

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

    (iii)   The
      Corporation
      shall not amend, alter or repeal any of the provisions of its Certificate of
      Incorporation in any manner that adversely affects the relative rights,
      preferences or limitations of the Series A Shares or the holders
      thereof.

    

    Section
      G.   Certain
      Restrictions.

    

    (1)   Whenever
      quarterly dividends or other dividends or distributions payable on the Series
      A
      Shares as provided in Section A are in arrears, thereafter and until all accrued
      and unpaid dividends and distributions, whether or not declared, on Series
      A
      Shares outstanding shall have been paid in full, the Corporation shall
      not:

    

    (i)   declare
      or pay dividends on, make any other distributions on, or redeem or purchase
      or
      otherwise acquire for consideration any shares of stock ranking junior (as
      to
      dividends) to the Series A Shares;

    

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

    

    (iii)   redeem
      or
      purchase or otherwise acquire for consideration shares of any stock ranking
      junior (as to dividends) to the Series A Shares; provided,
      however,
      that
      the Corporation may at any time redeem, purchase or otherwise acquire shares
      of
      any such junior stock in exchange for shares of any stock of the Corporation,
      ranking junior (as to dividends) to the Series A Shares; and 

    

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

    

    (2)   The
      Corporation shall not permit any subsidiary of the Corporation to purchase
      or
      otherwise acquire for consideration any shares of stock of the Corporation
      unless the Corporation could, under paragraph (1) of this Section G, purchase
      or
      otherwise acquire such shares at such time and in such manner.

    
      
        
        

      

      
        A-5

        
          

        

      

      
        
        

      

    

    Section
      H.   Fractional
      Shares.
      The
      Corporation may issue fractions and certificates representing fractions of
      Series A Shares in integral multiples of 1/100th of a Series A Share, or in
      lieu
      thereof, at the election of the Board of Directors of the Corporation at the
      time of the first issue of any Series A Shares, evidence such fractions by
      depositary receipts, pursuant to an appropriate agreement between the
      Corporation and a depositary selected by it, provided that such agreement shall
      provide that the holders of such depositary receipts shall have all rights,
      privileges and preferences to which they would be entitled as beneficial owners
      of Series A Shares. In the event that fractional Series A Shares are issued,
      the
      holders thereof shall have all the rights provided herein for holders of full
      Series A Shares in the proportion that such fraction bears to a full
      share.

    

    

    IN
      WITNESS WHEREOF, the Corporation has caused this Amended and Restated
      Certificate of Designation of Series A Preferred Stock to be signed as of this
      19th day of June, 2007.

    

    
      	 	
              ORTHOLOGIC
                CORP.

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/
                John M. Holliman, III

            
	 	
              Name:

            	
              John
                M. Holliman, III

            
	 	
              Title:

            	
              Executive
                Chairman

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    

    [Form
      of
      Right Certificate]

    

    
      	
              Certificate
                No. R-

            	
              ____________
                Rights

            

    

     

    NOT
      EXERCISABLE AFTER JUNE 19, 2010 OR EARLIER IF REDEEMED OR EXCHANGED BY THE
      COMPANY. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY,
      AT
      $0.01 PER RIGHT ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.

    

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

     

    Right
      Certificate

    ORTHOLOGIC
      CORP.

    

    This
      certifies that ______________________________, or registered assigns, is the
      registered owner of the number of Rights set forth above, each of which entitles
      the owner thereof, subject to the terms, provisions and conditions of the Rights
      Agreement, dated as of June 19, 2007 (the “Rights Agreement”), between
      OrthoLogic Corp., a Delaware corporation (the “Company”), and The Bank of New
      York, a New York corporation (the “Rights Agent”), to purchase from the Company
      at any time after the Separation Date (as such term is defined in the Rights
      Agreement) and prior to the close of business (5:00 PM New York, New York time)
      on June 19, 2010 at the office or offices of the Rights Agent designated for
      such purpose, or its successors as Rights Agent, one one-hundredth of a fully
      paid, nonassessable share of Series A Preferred Stock, par value $.0005 per
      share (“Series A Share”) of the Company, at a purchase price of Six Dollars
      ($6.00) per one one-hundredth of a share (the “Purchase Price”), upon
      presentation and surrender of this Right Certificate with the Form of Election
      to Purchase and related Certificate duly executed. The number of rights
      evidenced by this Right Certificate (and the number of shares that may be
      purchased upon exercise thereof) set forth above, and the Purchase Price per
      share set forth above, are the number and Purchase Price as of July 2, 2007,
      based on the Series A Shares as constituted at such date.

    

    Upon
      the
      occurrence of a Triggering Event (as such term is defined in the Rights
      Agreement), if the Rights evidenced by this Right Certificate are beneficially
      owned by (a) an Acquiring Person or an Affiliate or Associate of any such
      Acquiring Person (as such terms are defined in the Rights Agreement), (b) a
      transferee of any such Acquiring Person, Associate or Affiliate (other than
      a
      bona fide purchaser for value who has no knowledge that the transferor was
      an
      Acquiring Person or an Associate or Affiliate of an Acquiring Person) or (c)
      under certain circumstances specified in the Rights Agreement, a transferee
      of a
      person or entity who, after such transfer, became an Acquiring Person, such
      Rights shall become null and void and no holder hereof shall have any right
      with
      respect to such rights from and after the occurrence of any such Triggering
      Event.

     

    
      
        

      

    

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

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    As
      provided in the Rights Agreement, the Purchase Price and the number and kind
      of
      Series A Shares or other securities or other property that may be purchased
      upon
      the exercise of the Rights evidenced by this Right Certificate are subject
      to
      modification and adjustment upon the happening of certain events.

    

    This
      Right Certificate is subject to all of the terms, provisions and conditions
      of
      the Rights Agreement, which terms, provisions and conditions are hereby
      incorporated herein by reference and made a part hereof and to which Rights
      Agreement reference is hereby made for a full description of the rights,
      limitations of rights, obligations, duties and immunities hereunder of the
      Rights Agent, the Company and the holders of the Right Certificates, which
      limitations of rights include the temporary suspension of the exercisability
      of
      such Rights for not more than ninety (90) days at the election of the Company
      and under certain circumstances specified in such Rights Agreement. Copies
      of
      the Rights Agreement are on file at the above-mentioned office of the Rights
      Agent and are also available upon written request to the Company.

    

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

    

    Subject
      to the provisions of the Rights Agreement, the Rights evidenced by this
      Certificate may be redeemed at a redemption price of One Cent ($0.01) per Right
      or (ii) may be exchanged in whole or in part for shares of the Company’s Common
      Stock, par value $.0005 per share, or Series A Shares.

    

    The
      terms
      of the Rights evidenced by this Certificate may be supplemented or amended
      without the approval of any holder of the Rights (or the Common Shares) as
      set
      forth in the Rights Agreement.

    

    No
      fractional Series A Shares will be issued upon the exercise of any Right or
      Rights evidenced hereby (other than fractions that are integral multiples of
      one
      one-hundredth of a Series A Share, which may, at the election of the Company,
      be
      evidenced by depositary receipts), but in lieu thereof a cash payment will
      be
      made as provided in the Rights Agreement.

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

    No
      holder
      of this Right Certificate, as such, shall be entitled to vote or receive
      dividends or be deemed for any purpose the holder of Series A Shares or of
      any
      other securities of the Company that 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 Right Certificate shall have been exercised as
      provided in the Rights Agreement.

    

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

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

    

    WITNESS
      the facsimile signatures of the proper officers of the Company.

    

    Dated:
      ____________________, 20____

    

    
      	
              Countersigned

            	 	
              ORTHOLOGIC
                CORP.

            
	
              THE
                BANK OF NEW YORK

            	 	 	 
	
              as
                Rights Agent

            	 	 	 
	 	 	 	 	 
	 	 	 	
              By:

            	 
	 	 	 	
              Name:

            	 
	
              By:

            	 	 	
              Title:

            	 
	 	 	 	 	 
	 	 	 	
              Attest:

            	 
	 	 	 	
              Name:

            	 
	 	 	 	
              Title:

            	 
	 	 	 	 	 
	 	 	 	
              (Corporate
                Seal)

            

    

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

    

    [Form
      of
      Reverse Side of Right Certificate]

    

    

    FORM
      OF
      ASSIGNMENT

    

    

    (To
      be
      executed by the registered holder if such holder desires 

    to
      transfer the Right Certificate.)

    

    

    FOR
      VALUE
      RECEIVED ____________________ hereby sells, assigns and transfers unto
      _______________________

    

    

    (Please
      print name and address of Trustee)

    

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

    Dated:
      ____________________, 20____

    

    
      	 	 	 
	 	
              Signature

            	 

    

    

    

    Signature
      Guaranteed:

    
      
        
        

      

      
        B-5

        
          

        

      

      
        
        

      

    

    Certificate

    _________

    

    The
      undersigned hereby certifies by checking the appropriate boxes
      that:

    

    (i)   this
      Rights Certificate [    ] is [    ] is
      not being sold, assigned and transferred by or on behalf of a Person who is
      or
      was an Acquiring Person or an Affiliate or Associate of any such Acquiring
      Person (as such terms are defined in the Rights Agreement);

    

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

    

    

    
      	
              Dated: 
                ____________________,
                20____

            	 
	 	 	 	 	 	
              Signature

            

    

    
      
        
        

      

      
        B-6

        
          

        

      

      
        
        

      

    

    NOTICE

    __________

    

    The
      signature(s) to the foregoing Assignment and Certificate must correspond to
      the
      name(s) as written upon the face of this Right Certificate in every particular,
      without alteration or enlargement or any change whatsoever.

    
      
        
        

      

      
        B-7

        
          

        

      

      
        
        

      

    

    FORM
      OF
      ELECTION TO PURCHASE

    

    _____________________________

    

    (To
      be
      executed if holder desires to exercise 

    Rights
      represented by the Right Certificate.)

    

    

    To: ORTHOLOGIC
      CORP.

    

    The
      undersigned hereby irrevocably elects to exercise ____________________ Rights
      represented by this Right Certificate to purchase the Series A Shares (or
      fractions thereof) issuable upon the exercise of such Rights (or such other
      securities of the Company or of any other entity that may be issuable upon
      the
      exercise of the Rights) and requests that certificates for such shares be issued
      in the name of:

    

    
      	
              Please
                insert social security

            	 
	
              or
                other identifying number:

            	 
	 	 
	 
	
              (Please
                print name and address)

            
	 
	 

    

    

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

    

    Please
      insert social security

    or
      other
      identifying number:

    

    
      	 
	 
	
              (Please
                print name and address)

            
	 
	 

    

    

    
      	
              Dated:
                ____________________,
                20____

            	 
	 	 	 	 	 	
              Signature

            

    

    

    

    Signature
      Guaranteed:

    
      
        
        

      

      
        B-8

        
          

        

      

      
        
        

      

    

    Certificate

    __________

    

    The
      undersigned hereby certifies by checking the appropriate boxes
      that:

    

    (i)   the
      Rights evidenced by this Right Certificate [    ] are
      [    ] are not being exercised by or on behalf of a Person
      who is or was an Acquiring Person or an Affiliate or Associate of any such
      Acquiring Person (as such terms are defined in the Rights
      Agreement);

    

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

    

    

    
      	
              Dated:
                ____________________,
                20____

            	 
	 	 	 	 	 	
              Signature

            

    

    
      
        
        

      

      
        B-9

        
          

        

      

      
        
        

      

    

    NOTICE

    __________

    

    The
      signature(s) to the foregoing Election to Purchase and Certificate must
      correspond to the name(s) as written upon the face of this Right Certificate
      in
      every particular, without alteration or enlargement or any change
      whatsoever.

    
      
        
        

      

      
        B-10

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

    

    ORTHOLOGIC
      CORP.

    

    Summary
      of Rights to Purchase Series A Preferred Stock

    

    On
      June
      19, 2007, the Board of Directors of OrthoLogic Corp. (the “Company”) declared a
      dividend distribution of one Right for each outstanding share of Common Stock,
      par value $.0005 per share (a “Common Share”), of the Company to stockholders of
      record at the close of business on July 2, 2007 (the “Record Date”). Except as
      set forth below, each Right entitles the registered holder to purchase from
      the
      Company one one-hundredth of a share of Series A Preferred Stock, par value
      $.0005 per share (“Series A Shares”), at a price of $6.00 (the “Purchase
      Price”), subject to adjustment. The Purchase Price must be paid in cash. The
      description and terms of the Rights are set forth in a Rights Agreement (the
      “Rights Agreement”) between the Company and The Bank of New York, as Rights
      Agent.

    

    Initially,
      no separate Right Certificates will be distributed. Until the earlier to occur
      of (a) ten days following a public announcement that a person or group of
      affiliated or associated persons (an “Acquiring Person”) has acquired, or
      obtained the right to acquire, beneficial ownership of 20% or more of the
      outstanding Common Shares or (b) ten business days following the commencement
      of
      a tender offer or exchange offer if, upon consummation thereof, such person
      or
      group would be the beneficial owner of 20% or more of such outstanding Common
      Shares (the earlier of such dates being called the “Separation Date”), the
      Rights will be evidenced, with respect to any Common Shares outstanding as
      of
      the Record Date, by the certificates representing such Common Shares. The Rights
      Agreement provides that, until the Separation Date, the Rights will be
      transferred with, and only with, the Common Shares. From as soon as practicable
      after the Record Date and until the Separation Date (or earlier redemption
      or
      expiration of the Rights), new Common Share certificates issued after the Record
      Date upon transfer or new issuance of Common Shares will contain a notation
      incorporating the Rights Agreement by reference. Until the Separation Date
      (or
      earlier redemption or expiration of the Rights), the surrender for transfer
      of
      any certificates for Common Shares outstanding as of the Record Date will also
      constitute the transfer of the Rights associated with the Common Shares
      represented by such certificates. As soon as practicable following the
      Separation Date, separate certificates evidencing the Rights (“Right
      Certificates”) will be mailed to holders of record of the Common Shares as of
      the close of business on the Separation Date and, thereafter, such separate
      Right Certificates alone will evidence the Rights.

    

    The
      Rights are not exercisable until the Separation Date and will expire on June
      19,
      2010, unless earlier redeemed by the Company as described below.

    

    In
      the
      event that a person (other than the Company and its affiliates) becomes the
      beneficial owner of 20% or more of the then outstanding Common Shares, the
      Rights Agreement provides that proper provision shall be made so that each
      holder of a Right will thereafter be entitled to receive, upon exercise, Common
      Shares (or, in certain circumstances, cash, property or other securities of
      the
      Company) having a value equal to two times the exercise price of the
      Right.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    In
      the
      event that, at any time following the first date of public announcement by
      the
      Company or an Acquiring Person indicating that an Acquiring Person has become
      such (the “Shares Acquisition Date”), (a) the Company engages in a merger or
      other business combination transaction in which the Company is not the surviving
      corporation, (b) the Company engages in a merger or other business combination
      transaction or share exchange with another person in which the Company is the
      surviving corporation, but in which its Common Shares are changed or exchanged
      or (c) 50% or more of the Company’s assets or earning power is sold or
      transferred, the Rights Agreement provides that proper provision shall be made
      so that each holder of a Right shall thereafter have the right to receive,
      upon
      the exercise thereof at the then current exercise price of the Right, common
      shares of the acquiring company having a value equal to two times the exercise
      price of the Right.

    

    The
      Board
      may, at its option, at any time after the right of the Board to redeem the
      Rights has expired or terminated (with certain exceptions), exchange all or
      part
      of the then outstanding and exercisable Rights (other than those held by the
      Acquiring Person and Affiliates and Associates of the Acquiring Person) for
      Common Shares at a ratio of one Common Share per Right, as adjusted; provided,
      however, that such Right cannot be exercised once a Person, together with such
      Person’s Affiliates and Associates, becomes the owner of 50% or more of the
      outstanding Common Shares. If the Board authorizes such an exchange, the Rights
      will immediately cease to be exercisable.

    

    Notwithstanding
      any of the foregoing, following the occurrence of any of the events set forth
      in
      the fourth and fifth paragraphs of this Summary, any Rights that are, or (under
      certain circumstances specified in the Rights Agreement) were, beneficially
      owned by any Acquiring Person shall immediately become null and
      void.

    

    The
      Purchase Price payable, and the number of Series A Shares or other securities
      or
      property issuable, upon exercise of the Rights are subject to adjustment from
      time to time to prevent dilution (a) in the event of a dividend of Series A
      Shares on, or a subdivision, combination or reclassification of, the Series
      A
      Shares, (b) upon the grant to holders of the Series A Shares of certain rights
      or warrants to subscribe for Series A Shares or securities convertible into
      Series A Shares at less than the current market price of the Series A Shares
      or
      (c) upon the distribution to holders of the Series A Shares of debt securities
      or assets (excluding regular quarterly cash dividends and dividends payable
      in
      Series A Shares) or of subscription rights or warrants (other than those
      referred to above).

    

    At
      any
      time before a person becomes an Acquiring Person, the Board of Directors of
      the
      Company (the “Board”), may redeem the Rights in whole, but not in part, at a
      price of $0.01 per Right, subject to adjustment (the “Redemption Price”).
      Immediately upon the action of the Board ordering redemption of the Rights,
      the
      Rights will no longer be exercisable, except upon the occurrence of certain
      events that have the effect of deferring the effective time of the redemption.
      In general, thereafter the only right of the holders of Rights will be to
      receive the Redemption Price.

    

    Until
      a
      Right is exercised, the holder thereof, as such, will have no rights as a
      shareholder of the Company, including, without limitation, the right to vote
      or
      to receive dividends. While the distribution of the Rights will not be taxable
      to shareholders or to the Company, shareholders may, depending upon the
      circumstances, recognize taxable income in the event that the Rights become
      exercisable for Common Shares (or other consideration) of the Company or for
      common shares of the Acquiring Person as set forth above.

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

    Prior
      to
      the Separation Date, any of the provisions of the Rights Agreement may be
      amended by the Board other than the Redemption Price. Thereafter, certain other
      provisions of the Rights Agreement may be amended by action of the Board if
      such
      amendment does not adversely affect the interests of holders of Rights
      (excluding the interests of any Acquiring Person).

    

    A
      copy of
      the Rights Agreement will be filed with the Securities and Exchange Commission
      as an Exhibit to a Current Report on Form 8-K. A copy of the Rights Agreement
      is
      available free of charge from the Company. This summary description of the
      Rights does not purport to be complete and is qualified in its entirety by
      reference to the Rights Agreement, which is incorporated herein by
      reference.

     

     

    C-3merger.htm

    AGREEMENT
      AND PLAN OF MERGER

    

    THIS
      AGREEMENT AND PLAN OF MERGER (the
“Agreement”), dated as of June 18, 2007, by, between and among Liberator Medical
      Supply, a Florida corporation (the “Company”), Liberator Medical Holdings, Inc.
      (formerly Cardiff Communications, Inc.), a Nevada corporation (“Parent”), and
      Cardiff Merger, Inc., a Florida corporation, a wholly owned subsidiary of Parent
      (“Merger Sub”).  The Company, Parent, and Merger Sub together are
      referred to as the “Constituent Corporations.”

    

    RECITALS

    

    WHEREAS,
      the respective boards of
      directors of each of Parent, Merger Sub and the Company have approved the merger
      of Merger Sub with and into the Company (the “Merger”) upon the terms and
      subject to the conditions set forth in this Agreement and have adopted, approved
      and declared advisable this Agreement;

    

    WHEREAS,
      it is the intent of the
      Constituent Corporations that immediately following the Effective Time of the
      Merger, the Merger Sub will have merged with and into the Company; that the
      Company shall continue to be known as Liberator Medical Supply, Inc., and be
      the
      sole surviving wholly-owned subsidiary of the Parent (in that capacity, the
      Company is sometimes called the “Surviving Corporation”); that the Parent will
      change its name to Liberator Medical Holdings, Inc.; and that the directors
      and
      officers of the Company will be the directors and officers of the
      Parent;

    

    WHEREAS,
      it is intended that the Merger
      will qualify as a reorganization under Section 368(a) of the Internal Revenue
      Code of 1986, as amended (the “Code”);

    

    NOW,
      THEREFORE, in consideration of the
      premises, and of the representations, warranties, covenants and agreements
      contained herein, the parties hereto agree as follows:

    

    ARTICLE
      I

    THE
      MERGER; CLOSING; EFFECTIVE TIME

    

    1.1           The
      Merger. Upon the terms and subject to the conditions set forth in this
      Agreement, at the Effective Time (as defined in Section 1.3) Merger Sub shall
      be
      merged with and into the Company and the separate corporate existence of Merger
      Sub shall thereupon cease. The Company shall be the surviving corporation in
      the
      Merger (sometimes referred to as the “Surviving Corporation”), so that at the
      Effective Time the Company will be a wholly owned operating subsidiary of the
      Parent, and the separate corporate existence of the Company with all its rights,
      privileges, immunities, powers and

    franchises
      shall continue unaffected by the Merger, except as set forth in Article II.
      The
      Merger shall have the effects specified in the Florida Business Corporation
      Act
      (“FBCA”). Without limiting the generality of the foregoing and subject thereto,
      at the Effective Time all of the property, rights, privileges, powers and
      franchises of the Merger Sub shall vest in the Company as the Surviving
      Corporation, and all debts, liabilities, restrictions, disabilities and duties
      of the Merger Sub shall become the debts, liabilities, restrictions,
      disabilities and duties of the Surviving Corporation.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    1.2           Closing.
      Unless otherwise mutually agreed in writing between the Company and Parent,
      the
      closing of the Merger (the “Closing”) shall take place at the offices of Siegel,
      Lipman, Dunay, Shepard & Miskel, LLP, 5355 Town Center Road, Suite 801, Boca
      Raton, Florida 33486, at 10:00 a.m. (Eastern Time) on or about June 21, 2007
      (the “Closing Date”), or at such other location or on such other date as the
      parties shall mutually agree.

    

    1.3           Effective
      Time. As promptly as practicable following the Closing, the Company, the
      Merger Sub, and the Parent will cause articles of merger (the “Articles of
      Merger”) to be executed, acknowledged and filed with the Secretary of State of
      the State of Florida as provided in Section 607.1105 of the FBCA. The Merger
      shall become effective as of the date on which the Articles of Merger are duly
      filed with the Secretary of State of the State of Florida, or at such later
      time
      as may be agreed by the parties and specified in the Articles of Merger (the
      “Effective Time”).

    

                1.4    Capitalization.  The
      Merger shall be effected through the issuance of common stock of the
      Parent.  The Parent has authorized 200,000,000 shares of common stock,
      $001 par value, of which as of the date of this Agreement 10,239,499 shares
      are
      issued and outstanding.  Contemporaneously with the Merger, the Parent
      shall effect various corporate actions, including issuance of shares pursuant
      to
      the Merger, issuance of shares pursuant to private financing, conversion of
      debt, cancellation of debt, and cancellation of shares.  These actions
      shall result in a “post closing” capitalization of the Parent of 30,519,862
      shares of Parent Common Stock (as herein defined), subject to adjustment for
      shares of Company Common Stock issued or issuable to investors (including
      holder’s of the Company’s convertible debt), placement agents, and consultants
      to the Company prior to Closing, as the parties shall agree.

    

    ARTICLE
      II

    ARTICLES
      OF INCORPORATION AND BY-LAWS

    OF
      THE
      SURVIVING CORPORATION AND PARENT

    

    2.1           The
      Articles of Incorporation. The Articles of Incorporation of the Company (the
“Articles”) as in effect immediately prior to the Effective Time shall continue
      to be its Articles after the Merger until duly amended by applicable
      Law.

    

    2.2  The
      By-Laws. The parties hereto shall take all actions necessary so that the
      by-laws of the Company in effect immediately prior to the Effective Time shall
      continue to be its by-laws as the Surviving Corporation (the “By-Laws”), until
      thereafter amended as provided therein or by applicable Law.

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.3           Articles
      of Incorporation of Parent. Parent shall take all actions necessary so that
      its Articles of Incorporation are amended, at or prior to the Effective Time,
      to
      change its name to “Liberator Medical Holdings, Inc.”

    

    ARTICLE
      III

    OFFICERS
      AND DIRECTORS OF THE SURVIVING CORPORATION AND THE PARENT

    

    3.1           Directors
      of Surviving Corporation. The parties hereto shall take all actions
      necessary so that the members of the board of directors of the Company at the
      Effective Time shall, from and after the Effective Time, be the directors of
      the
      Surviving Corporation until their successors have been duly elected or appointed
      and qualified or until their earlier death, resignation or removal in accordance
      with the Charter and the By-Laws.

    

    3.2           Officers.
      The parties hereto shall take all actions necessary so that the officers of
      the
      Company at the Effective Time shall, from and after the Effective Time, be
      the
      officers of the Surviving Corporation until their successors have been duly
      elected or appointed and qualified or until their earlier death, resignation
      or
      removal in accordance with the Charter and the By-Laws.

    

    3.3           Directors
      of the Parent.  The parties hereto shall take all actions
      necessary so that the members of the board of directors of the Company at the
      Effective Time shall, from and after the Effective Time, be the directors of
      the
      Parent until their successors have been duly elected or appointed and qualified
      or until their earlier death, resignation or removal in accordance with the
      Articles of Incorporation of Parent and the By-Laws of Parent; provided,
      however, that no such action or appointment shall be effective prior to the
      Parent’s compliance with applicable law, including Rule 14f-1 promulgated under
      the Securities Exchange Act of 1934, as amended (the “Exchange
      Act”).

    

    ARTICLE
      IV

    EFFECT
      OF THE MERGER ON CAPITAL STOCK;

    ISSUANCE
      OF PARENT SHARE CERTIFICATES

    

    4.1           Effect
      on Capital Stock. At the Effective Time, as a result of the Merger and
      without any action on the part of the Company, Parent, Merger Sub or any holder
      of any capital stock of the Company:

    

    (a)           Merger
      Consideration.  For purposes of this Agreement, the term “Merger
      Consideration” shall mean one (1) share of common stock, par value$.001 per
      share, of the Parent (“Parent Common Stock”).

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)           Exchange
      Ratio. As of the Effective Time, by virtue of the Merger and without any
      action on the part of the holders thereof:

    

    
      	
              4.2  

            	
               Any
                shares of any class of capital stock of the Company held by the Company
                as
                treasury shares shall be canceled.

            

    

    

    
      	
              4.3  

            	
              The  issued
                and outstanding shares of Common Stock of the Company (the “Company Common
                Stock”), other than shares of Company Common Stock, if any, for which
                dissenters’ rights are perfected in compliance with applicable law, and
                the Company’s convertible notes, shall be converted into one (1) share
                of  Parent common stock (the “Parent Common Stock”) for each
                share of Company Common Stock held by the Company’s shareholder or to
                which the Company’s noteholders are entitled on conversion of their notes.
                All other outstanding rights, warrants or options, vested or unvested,
                to
                acquire Company Common Stock (“Stock Purchase Rights”) shall be
                automatically converted into Stock Purchase Rights of the
                Parent.

            

    

    

    (iii)           Each
      issued and outstanding share of capital stock of the Parent at the Effective
      Time shall continue to remain outstanding after the Effective Time.

    

    (iv)           The
      Parent shall assume the Company’s Stock Plan (the “Company Plan”), and each
      outstanding option to purchase shares of Company Common Stock set forth on
      Schedule 4.1(b) to the Disclosure Schedule, whether or not vested or exercisable
      (each, an “Option”), shall be assumed by the Parent and shall constitute an
      option to acquire, on the same vesting terms, and on substantially the same
      other terms and conditions as were applicable under such assumed Option, one
      (1)
      share of Parent Common Stock.

    

    (v)           Holders
      of shares of Company Common Stock who have complied with all the requirements
      for perfecting dissenters’ rights, as required under the FBCA, shall be entitled
      to their rights under the FBCA with respect to such shares (the “Dissenting
      Shares”). Notwithstanding the foregoing, if any holder of Dissenting Shares
      shall effectively withdraw or lose (through failure to perfect or otherwise)
      the
      right to dissent, then, as of the later of the Effective Time and the occurrence
      of such event, such holder’s shares shall automatically be converted into and
      represent only the right to receive the shares of Parent Common Stock to which
      such holder is then entitled under this Agreement and the FBCA, without interest
      thereon and upon surrender of the certificate representing such shares.
      Notwithstanding any provision of this Agreement to the contrary, any Dissenting
      Shares held by a Shareholder who has perfected dissenter’s rights for such
      shares in accordance with the FBCA shall not be converted in Parent Common
      Stock
      pursuant to this Section 4.1(b)(v).

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (vi)           If,
      prior to the Effective Time, the Parent recapitalizes through a split-up of
      its
      outstanding shares of capital stock into a greater number, or a combination
      of
      its outstanding shares of capital stock into a lesser number, reorganizes,
      reclassifies or otherwise changes its outstanding shares of capital stock into
      the same or a different number of shares of other classes of capital stock,
      or
      declares a dividend on its outstanding shares of capital stock payable in shares
      or securities convertible into shares, the number of shares of Parent Common
      Stock into which the shares of Company Common Stock are to be converted, and
      the
      number of shares of Parent Common Stock issuable upon the exercise of each
      assumed Option will be adjusted appropriately so as to maintain the
      proportionate interests of the holders of the Company Common Stock and Options
      and the holders of shares of capital stock of the Parent.

    

    (c)           Restricted
      Stock. The shares of Parent common stock issued to shareholders of the
      Company as Preferred Merger Consideration and Common Merger Consideration will
      be “restricted securities” within the meaning of Securities and Exchange
      Commission Rule 144.

    

    (d)           Post-Merger
      Authorized Capital of Surviving Corporation. Upon completion of the Merger,
      the authorized capital stock of the Surviving Corporation will consist of one
      hundred million (100,000,000) shares of Common Stock, no par value per share,
      one share of which will be validly issued and outstanding and the Parent will
      be
      the sole shareholder of the Surviving Corporation.

    

    (f)           Post-Merger
      Capitalization of Parent. The authorized capital stock of the Parent will
      consist of (i) Thirty-million Five-hundred Nineteen-thousand Eight-hundred
      Sixty-two (30,519,862) shares of Parent Common Stock, $.001 par value per
      share.  Exhibit 1.4 sets forth a capitalization table of the
      post-Merger capitalization of the Company. The parties confirm their
      understanding that the number of the Parent’s outstanding post-Merger shares
      will be adjusted for conversion of Company Common Stock and convertible debt
      issued to investors in the Company concurrently with the Closing, as more
      particularly set forth in Exhibit 1.4 of the Disclosure Schedule.

    

               4.4           Exchange
      of Certificates.

    

    (a)           Immediately
      after the Effective Time, all shares of Company Common Stock shall be cancelled
      without any requirement of their surrender by holders of those shares to the
      Surviving Corporation of the certificates which immediately prior to the
      Effective Time represented shares of Company Common Shares. The Parent shall
      deliver to such holders their Parent Common Stock.

    

    (b)           Transfers.
      From and after the Effective Time, there shall be no transfers on the stock
      transfer books of the Company of the Shares that were outstanding immediately
      prior to the Effective Time. If, after the Effective Time, any Certificate
      is
      presented to the Surviving Corporation or Parent for transfer, it shall be
      cancelled and exchanged for Common Merger Consideration, to which the holder
      thereof is entitled pursuant to this Article IV.

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.5           Appraisal
      Rights.  No Person who has perfected a demand for appraisal rights
      pursuant to FBCA Sections 607.1301 etseq. shall be entitled to
      receive the Common Merger Consideration or any dividends or other distributions
      pursuant to this Article IV unless and until the holder thereof shall have
      effectively withdrawn the demand for, or otherwise lost such holder’s right to,
      appraisal under the FBCA, and any Dissenting Shareholder shall be entitled
      to
      receive only the payment provided by the FBCA with respect to Shares owned
      by
      such Dissenting Shareholder. For the purposes of this Agreement, the term
“Person” shall mean any individual, corporation (including not-for-profit),
      general or limited partnership, limited liability company, joint venture,
      estate, trust, association, organization, governmental entity or other entity
      of
      any kind or nature. If any Dissenting Shareholder shall have effectively
      withdrawn the demand for, or otherwise lost the right to, appraisal with respect
      to any Shares, such Dissenting Shareholder shall be entitled to receive only the amount to which such
      shareholder would be
      entitled pursuant to this Article IV. The Company shall give Parent (i) prompt
      notice of any written demands for appraisal, attempted withdrawals of such
      demands, and any other instruments served pursuant to applicable law received
      by
      the Company relating to shareholders’ rights of appraisal and (ii) the
      opportunity to direct all negotiations and proceedings with respect to demand
      for appraisal under the FBCA. The Company shall provide such notices and take
      such actions as are required by law with respect to the administration of the
      appraisal rights provided pursuant to the FBCA.

    

    4.6           Treatment
      of Stock Plans, Phantom Shares and Share Loans.

    

    (a)           Treatment
      of Options and Warrants. At the Effective Time, each debenture, warrant,
      option and other Stock Purchase Rights with respect to shares of Company Common
      Stock granted and unexercised immediately prior to the Effective Time (a
“Company Option”), vested or unvested, shall be converted into a like right to
      purchase the same number of shares of Parent Common Stock on the same terms
      and
      conditions as such Stock Purchase Rights. The debentures, notes, warrants,
      options or other Stock Purchase Rights that will be granted and exercisable
      for
      shares of Parent Common Stock at the Effective Time, in the aggregate, are
      set
      forth on Schedule 4.1(a) to this Agreement.

    

    4.7           Corporate
      Actions.  At or prior to the Effective Time, the Company, the
      board of directors of the Company shall adopt any resolutions and take any
      actions which are necessary or appropriate to effectuate the provisions of
      Section 4.4(a).

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
      V

    LIMITATION
      OF SUBSEQUENT CORPORATE ACTIONS

    

    It
      is expressly understood and agreed
      that the Company, and its affiliates and shareholders, will take all steps
      necessary to insure that with respect to the operations of the Parent for a
      period of twelve months following the Merger, (i) there shall be no reverse
      split, (ii) there shall be no shares issued for less than $.80 per share
      consideration, (with the exception of employee and shareholder warrants and
      options currently issued or scheduled and which are not automatically converted
      into Parent Common Stock at the Effective Time), (iii) there shall be no
      registration of Parent shares pursuant to Form S-8, and (iv) the Company’s
      assets existing at the Effective Time shall remain in place as part of the
      business operations except for adjustments arising from changes in the Company’s
      business operations.

    

    ARTICLE
      VI

    REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

    

    6.1           Capitalization.  Except
      for this Agreement or as set forth in the Disclosure Schedule, and with the
      exception of employee and shareholder warrants and options currently issued
      or
      scheduled, there are no outstanding options, contracts, calls, commitments,
      agreements or demands of any character relating to the stock of the
      Company.

    

    6.2           Organization
      and Authority.

    

    (a)           The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Florida, with all requisite corporate power
      and
      authority to own, operate and lease its properties and to carry on its business
      as now being conducted, is duly qualified and in good standing in every
      jurisdiction in which the property owned, leased or operated by it, or the
      nature of the business conducted by it, makes such qualification necessary
      to
      avoid material liability or material interference in its business operations,
      and is not subject to any agreement, commitment or understanding which restricts
      or may restrict the conduct of its business in any jurisdiction or location.
      The
      Company is presently qualified to do business Florida.

    

    (b)           The
      outstanding shares of the Company are legally and validly issued, fully paid
      and
      non-assessable.

    

    (c)           The
      Company does not own five percent (5%) or more of the outstanding stock of
      any
      corporation, except as listed on the Disclosure Schedule.

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (d)           The
      minute book of the Company made available to Parent contains complete and
      accurate records of all meetings and other corporate actions of the shareholders
      and the Board of Directors (and any committee thereof) of the
      Company.

    

    (e)           The
      Disclosure Schedule contains a list of the officers, directors and shareholders
      of the Company and copies of the articles of incorporation and by-laws currently
      in effect of the Company.

    

    (f)           The
      execution and delivery of this Agreement does not, and the consummation of
      the
      transaction contemplated hereby will not, subject to the approval and adoption
      by the Shareholders of the Company, violate any provision of the articles of
      incorporation or bylaws of the Company, or any provisions thereof, or result
      in
      the acceleration of any obligation under, any mortgage, lien, lease, agreement,
      instrument, court order, arbitration award, judgment or decree to which the
      Company is a party, or by which it is bound, and will not violate any other
      restriction of any kind or character to which it is subject.

    

    (g)           The
      authorized capital stock of the Company is one hundred
      million  (100,000,000) shares of common stock, no par value, of which
      approximately 22,895,959 shares of such stock will be issued and outstanding
      at
      the time of Closing, subject to adjustment for shares issued or issuable prior
      to Closing, as more particularly set forth in Exhibit 1.4 of the Disclosure
      Schedule.

    

    6.3           Financials.

    

    (a)           Audited
      financial statements (hereafter “financial statements”) of the Company for the
      period January 1, 2005, through December 31, 2006, have been delivered by the
      Company to the Parent.  Said financial statements are true and correct
      in all material respects and present an accurate and complete disclosure of
      the
      financial condition of the Company as of its date and for the periods
      covered.

    

    (b)           All
      accounts receivable, if any, (net of reserves for doubtful accounts) of the
      Company shown on the books of account on the statement date and as incurred
      in
      the normal course of business since that date, are collectible in the normal
      course of business.

    

    (c)           The
      Company has good and marketable title to all of its assets, business and
      properties including, without limitation, all such properties reflected in
      the
      balance sheet as of the statement date except as disposed of in the normal
      course of business, free and clear of any mortgage, lien, pledge, charge, claim
      or encumbrance, except as shown on said balance sheet as of the statement date
      and, in the case of real properties except for rights-of-way and easements
      which
      do not adversely affect the use of such property.  Any encumbrances
      will be included in the attached Disclosure Schedule.

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (d)           All
      currently used property and assets of the Company, or in which it has an
      interest, or which it has in possession, are in good operating condition and
      repair subject only to ordinary wear and tear.

    

    6.4           Changes
      Since the Statement Date.  Since the financial statement date,
      except as disclosed in the Disclosure Schedule, there will not have been any
      material negative change in the financial position or assets of the
      Company.

    

    6.5           Liabilities.  To
      the best of the knowledge of management, there are no material liabilities
      of
      the Company, whether accrued, absolute, contingent or otherwise, which arose
      or
      relate to any transaction of the Company, its agents or servants occurring
      prior
      to the statement date, which are not disclosed by or reflected in said financial
      statements, except as disclosed in the Disclosure Schedule.  There are
      no such liabilities of the Company which have arisen or relate to any
      transaction of the Company, its agents or servants, occurring since the
      statement date, other than normal liabilities incurred in the normal conduct
      of
      the business of the Company, and none of which have a material adverse effect
      on
      the business or financial condition of the Company, except as disclosed in
      the
      Disclosure Schedule.  As of the date hereof, there are no known
      circumstances, conditions, happenings, events or arrangements, contractual
      or
      otherwise, which may hereafter give rise to liabilities, except in the normal
      course of business of the Company, except as disclosed in the Disclosure
      Schedule.

    

    6.6           Taxes.  All
      federal, foreign, county and local income, ad valorem, excise, profits,
      franchise, occupation, property, sales, use gross receipts and other taxes
      (including any interest or penalties relating thereto) and assessments which
      are
      due and payable have been duly reported, fully paid and discharged as reported
      by the Company, and there are no unpaid taxes which are, or could become a
      lien
      on the properties and assets of the Company, except as provided for in the
      financial statements of their date, or have been incurred in the normal course
      of business of the Company since that date.  All tax returns of any
      kind required to be filed have been filed and the taxes paid or
      accrued.

    

    6.7           Accuracy
      of All Statements Made by Company.  No representation or warranty
      by the Company and Shareholders in this Agreement, nor any statement,
      certificate, schedule or exhibit hereto furnished or to be furnished by or
      on
      behalf of the Shareholders pursuant to this Agreement, nor any document or
      certificate delivered to Parent pursuant to this Agreement or in connection
      with
      actions contemplated hereby, contains or shall contain any untrue statement
      of
      material fact or omits or shall omit a material fact necessary to make the
      statement contained therein not misleading.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.8           Limitation
      of Subsequent Corporate Actions.  It is expressly understood and
      agreed that the Company, and its affiliates and shareholders, will take all
      steps necessary to insure that with respect to the operations of the Parent
      for
      a period of twelve months following the Acquisition, (i) there shall be no
      reverse split, (ii) no stock shall be issued for less than $.80 per share,
      (with
      the exception of employee and shareholder warrants and options currently issued
      or scheduled), (iii) the Company does not issue shares registered pursuant
      to
      Form S-8, and (iv) the Company will maintain its existing assets except for
      assets sold or replaced in the ordinary course of business and changes in assets
      made to meet the Company’s business plan, as amended from
      time-to-time.

    

    ARTICLE
      VII

    REPRESENTATIONS
      AND WARRANTIES OF PARENT

    

    Parent
      represents and warrants as
      follows:

    

    7.1           Organization
      and Authority.  The Parent is a corporation duly organized,
      validly existing and in good standing under the laws of the State of Nevada,
      with full power and authority to enter into and perform the transactions
      contemplated by this Agreement, and with all requisite corporate power and
      authority to own, operate and lease its properties and to carry on its business
      as now being conducted, is duly qualified and in good standing in every
      jurisdiction in which the property owned, leased or operated by it, or the
      nature of the business conducted by it, makes such qualification necessary
      to
      avoid material liability or material interference in its business operations,
      and is not subject to any agreement, commitment or understanding which restricts
      or may restrict the conduct of its business in any jurisdiction or
      location.

    

    (a)           The
      outstanding shares of the Parent are legally and validly issued, fully paid
      and
      non-assessable.

    

    (b)           The
      Parent does not own five percent (5%) or more of the outstanding stock of any
      corporation, except as listed on the Disclosure Schedule.

    

    (c)           The
      minute book of the Parent made available to the Company and Shareholders
      contains complete and accurate records of all meetings and other corporate
      actions of the shareholders and the Board of Directors (and any committee
      thereof) of the Parent.

    

    (d)           The
      Disclosure Schedule contains a list of the officers, directors and shareholders
      of the Parent and copies of the articles of incorporation and by-laws currently
      in effect of the Parent.

    

    (e)           The
      execution and delivery of this Agreement does not, and the consummation of
      the
      transaction contemplated hereby will not violate any provision of the
      certificate/articles of incorporation or bylaws of the Parent, or any provisions
      thereof, or result in the acceleration of any obligation under, any mortgage,
      lien, lease, agreement, instrument, court order, arbitration award, judgment
      or
      decree to which the Parent is a party, or by which it is bound, and will not
      violate any other restriction of any kind or character to which it is
      subject.

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (f)           The
      authorized capital stock of the Parent is two hundred million (200,000,000)
      shares of common stock, $.001 par value, of which 10,239,499 shares are
      currently issued and outstanding.  The Parent has no outstanding
      options, warrants, or other securities exercisable for or convertible into
      Parent Common Stock.

    

    (g)           The
      number of shares of Parent Common Stock to be issued and outstanding at the
      Effective Time, and the allocation of those shares among the Company’s and the
      Parent’s existing securities holders and others, is set forth in the Disclosure
      Schedule.

    

    (h)           Parent
      represents that at the time of Closing it will have no assets
      or     liabilities other than that which is reflected
      in its audited financial statements.

    

    (i)           Parent
      represents that at the time of Closing it has taken all necessary steps to
      comply with all applicable state and federal securities laws and regulations
      and
      that, to the knowledge of the Parent, at the time of Closing, there is no
      litigation, arbitration, governmental or other proceeding (formal or informal),
      claim or investigation pending or threatened, with respect to the Parents
      compliance with any and all applicable securities laws and
      regulations.

    

    7.2           Performance
      of This Agreement.  The execution and performance of this
      Agreement and the issuance of stock contemplated hereby have been authorized
      by
      the board of directors of Parent, and no approval of the Parents shareholder
      is
      necessary therefore.

    

    7.3           Financials.

    

    (a)           True
      copies of the audited financial statements of the Parent for the periods from
      January 1, 2005, through December 31, 2006, will have been delivered by the
      Parent.  These statements have been examined and certified by
      certified public accountants.  Un-audited Interim financial statements
      through March 31, 2007, will have also been delivered to the
      Company.  Said financial statements are true and correct in all
      material respects and present an accurate and complete disclosure of the
      financial condition and earnings of the Parent for the periods covered, in
      accordance with generally accepted accounting principles applied on a consistent
      basis.

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)           All
      accounts receivable, if any, (net of reserves for doubtful accounts) of the
      Parent shown on financial statement, and as incurred in the normal course of
      business since that date, are collectible in the normal course of
      business.

    

    (c)           The
      Parent has good and marketable title to all of its assets, business and
      properties including, without limitation, all such properties reflected in
      the
      aforementioned balance sheet, except as disposed of in the normal course of
      business, free and clear of any mortgage, lien, pledge, charge, claim or
      encumbrance, except as shown on said balance sheet, and, in the case of real
      properties, except for rights-of-way and easements which do not adversely affect
      the use of such property.

    

    7.4           Changes
      Since Date of Financial Statements.  Since the date of the
      financial statements, except as disclosed in the Disclosure Schedule, there
      has
      not been any material change in the financial position or assets of the
      Parent.

    

    7.5           Accuracy
      of All Statements Made by Parent.  No representation or warranty
      by the Parent in this Agreement, nor any statement, certificate, schedule or
      exhibit hereto furnished or to be furnished by the Parent pursuant to this
      Agreement, nor any document or certificate delivered to the Company or the
      Shareholders pursuant to this Agreement or in connection with actions
      contemplated hereby, contains or shall contain any untrue statement of material
      fact or omits or shall omit a material fact necessary to make the statement
      contained therein not misleading.

    

    7.6           Full
      Disclosure.  No Information furnished by the Purchaser or the
      Merger Sub to the Company or its representatives in connection with this
      Agreement or otherwise in connection with the Merger contains any untrue
      statement or material fact or omits to state a material fact necessary in order
      to make the statements so made or information so delivered
      non-misleading.

    

    7.7           Legality
      of Shares to be Issued.  The shares of common stock of Parent to
      be delivered pursuant to this Agreement, when so delivered, will have been
      duly
      and validly authorized and issued by Parent and will be fully paid and
      non-assessable.

    

    7.8           No
      Covenant as to Tax Consequences.  It is expressly understood and
      agreed that neither Parent nor its officers or agents has made any warranty
      or
      agreement, expressed or implied, as to the tax consequences of the transactions
      contemplated by this Agreement or the tax consequences of any action pursuant
      to
      or growing out of this Agreement.

    

    7.9           No
      Approvals or Notices Required; No Conflicts with Instruments.  The
      execution, delivery and performance of this Agreement by the Parent and the
      Merger Sub, as applicable, and the consummation by them of the transactions
      contemplated hereby and thereby will not (a) constitute a violation (with or
      without the giving of notice or lapse of time, or both) of any provision of
      law
      applicable to the Parent or the Merger Sub; (b) require any consent, approval
      or
      authorization of any person, except (i) compliance of applicable securities
      laws, and (ii) the filing of documents necessary to consummate the Merger with
      the Florida Secretary of State; (c) result in a default (with or without the
      giving of notice or lapse of time, or both) under, or acceleration or
      termination of, with the creation of any party with the right to accelerate,
      terminate, modify or cancel, any agreement, lease, note or other restriction,
      encumbrance, obligation or liability to which the Parent or the Merger Sub
      is a
      party or by which either of them is bound or by which any assets of either
      of
      them are subject; or (d) conflict with or result in a breach of or constitute
      a
      default under any provision of the Articles of Incorporation or By-Laws of
      the
      Merger Sub or of the Parent.

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.10                      SEC
      Documents.  The Parent has furnished the Company with true and
      complete copies of its annual report on Form 10-KSB for the fiscal year ended
      September 30, 2006, all Forms 8-K filed after the date of such Form 10-KSB,
      the
      quarterly report on Form 10Q-SB for the quarter ended December 31, 2006, and
      any
      proxy statement relating to any annual meetings of shareholders for the past
      two
      years (collectively, the “SEC Documents”).  Each of the SEC Documents
      complies in all material respects with the requirements of Exchange Act, and
      the
      rules and regulations of the Securities and Exchange Commission promulgated
      thereunder.

    

    ARTICLE
      VIII

    COVENANTS
      OF THE COMPANY

    

    8.1           Access
      to Information.  Parent and its authorized representatives shall
      have full access during normal business hours to all properties, books, records,
      contracts and documents of the Company, and the Company shall furnish or cause
      to be furnished to Parent and its authorized representative all information
      with
      respect to its affairs and business of the Company as Parent may reasonably
      request.

    

    8.2           Actions
      Prior to Closing.  From and after the date of this Agreement and
      until the Closing Date, the Company shall not materially alter its
      business.

    

    ARTICLE
      IX

    CONDITIONS
      PRECEDENT TO PARENT’S OBLIGATIONS

    

    Each
      and every obligation of Parent to
      be performed on the Closing Date shall be subject to the satisfaction of the
      Parent of the following conditions:

    

    9.1           Truth
      of Representations and Warranties.  The representations and
      warranties made by the Company in this Agreement or given on its behalf
      hereunder shall be substantially accurate in all material respects on and as
      of
      the Closing Date with the same effect as though such representations and
      warranties had been made or given on and as of the Closing Date.

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    9.2           Compliance
      with Covenants.  The Company shall have performed and complied
      with all obligations under this Agreement which are to be performed or complied
      with by them prior to or on the Closing Date, including the delivery of the
      Closing documents specified hereafter.

    

    9.3           Absence
      of Suit.  No action, suit or proceedings before any court or any
      governmental or regulatory authority shall have been commenced or threatened
      and, no investigation by any governmental or regulatory authority shall have
      been commenced against the Company or any of the affiliates, associates,
      officers or directors of any of them, seeking to restrain, prevent or change
      the
      transactions contemplated hereby, or questioning the validity or legality of
      any
      such transactions, or seeking damages in connection with any of such
      transactions.

    

    9.4           Receipt
      of Approvals, Etc.  All approvals, consents and/or waivers that
      are necessary to effect the transactions contemplated hereby shall have been
      received.

    

    9.5           No
      Material Adverse Change.  As of the Closing Date there shall not
      have occurred any material adverse change which materially impairs the ability
      of the Company to conduct its business or the earning power thereof on the
      same
      basis as in the past.

    

    9.6           Accuracy
      of Financial Statement.  Parent and its representatives shall be
      satisfied as to the accuracy of all balance sheets, statements of income and
      other financial statements of the Company furnished to Parent
      herewith.

    

    9.7           Proceedings
      and Instruments Satisfactory; Certificates.  All proceedings,
      corporate or otherwise, to be taken in connection with the transactions
      contemplated by this Agreement shall have occurred and all appropriate documents
      incident thereto as Parent may request shall have been delivered to
      Parent.  The Company and the Shareholders shall have delivered
      certificates in such detail as Parent may request as to compliance with the
      conditions set forth in this Article 9.

    

    

    ARTICLE
      X

    CONDITIONS
      PRECEDENT TO OBLIGATIONS OF THE COMPANY

    

    Each
      and
      every obligation of the Company and shareholders to be performed on the Closing
      Date shall be subject to the satisfaction prior thereto of the following
      conditions:

    

    10.1                      Truth
      of Representations and Warranties.  The representations and
      warranties of Parent contained in this Agreement shall be true at and as of
      the
      Closing Date as though such representations and warranties were made at and
      as
      of the transfer date.

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    10.2                      Parent’s
      Compliance with Covenants.  Parent shall have performed and
      complied with its obligations under this Agreement which are to be performed
      or
      complied with by it prior to or on the Closing Date.

    

    10.3                      Absence
      of Suit.  No action, suit or proceedings before any court or any
      governmental or regulatory authority shall have been commenced or threatened
      and, no investigation by any governmental or regulatory authority shall have
      been commenced against Parent, or any of the affiliates, associates, officers
      or
      directors of the Parent seeking to restrain, prevent or change the transactions
      contemplated hereby, or questioning the validity or legality of any such
      transactions, or seeking damages in connection with any of such
      transactions.

    

    10.4                      Receipt
      of Approvals, Etc.  All approvals, consents and/or waivers that
      are necessary to effect the transactions contemplated hereby shall have been
      received.

    

    10.5                      No
      Material Adverse Change.  As of the Closing Date there shall not
      have occurred any material adverse change which materially impairs the ability
      of the Parent to conduct its business or the earning power thereof on the same
      basis as in the past.

    

    10.6                      Accuracy
      of Financial Statements.  The Company shall be satisfied as to the
      accuracy of all balance sheets, statements of income and other financial
      statements of the Parent furnished to the Company herewith.

    

    10.7                      Proceedings
      and Instruments Satisfactory; Certificates.  All proceedings,
      corporate or otherwise, to be taken in connection with the transactions
      contemplated by this Agreement shall have occurred and all appropriate documents
      incident thereto as the Company may request shall have been delivered to the
      Company.  The Parent shall have delivered certificates in such detail
      as the Shareholders may request as to compliance with the conditions set forth
      in this Article 10.

    

    ARTICLE
      XI

    INDEMNIFICATION

    

    The
      Company shall indemnify Parent for
      any loss, cost, expense or other damage suffered by Parent resulting from,
      arising out of, or incurred with respect to the falsity or the breach of any
      material representation, warranty or covenant made by the Company
      herein.  Parent shall indemnify and hold the Company harmless from and
      against any loss, cost, expense or other damage (including, without limitation,
      attorneys’ fees and expenses) resulting from, arising out of, or incurred with
      respect to, or alleged to result from, arise out of or have been incurred with
      respect to, the falsity or the breach of any representation, covenant, warranty
      or agreement made by Parent herein.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ARTICLE
      XII

    SECURITIES
      ACT PROVISIONS

    

    12.1                      Restrictions
      on Disposition of Shares.  The Company covenants and warrants that
      it will advise its securities holders that the Parent shares received by them
      a
      the Effective Time must be acquired for their own account and not with the
      view
      towards the distribution thereof and that they cannot dispose of such shares
      except (i) pursuant to an effective registration statement under the Securities
      Act of 1933, as amended, or (ii) in any other transaction which, in the opinion
      of counsel, acceptable to Parent, is exempt from registration under the
      Securities Act of 1933, as amended, or the rules and regulations of the
      Securities and Exchange Commission thereunder.  In order to effectuate
      the covenants of this sub-section, an appropriate endorsement will be placed
      upon each of the certificates of common stock of the Parent at the time of
      distribution of such shares pursuant to this Agreement, and stop transfer
      instructions shall be placed with the transfer agent for the
      securities.

    

    12.2                      Notice
      of Limitation Upon Disposition.  The Company is aware that the
      shares exchanged pursuant to this Agreement will not have been registered
      pursuant to the Securities Act of 1933, as amended; and, therefore, under
      current interpretations and applicable rules, the shareholder will probably
      have
      to retain such shares for a period of at least one year and at the expiration
      of
      such one year period sales may be confined to brokerage transactions of limited
      amounts requiring certain notification filings with the Securities and Exchange
      Commission and such disposition may be available only if the Parent is current
      in its filings with the Securities and Exchange Commission under the Securities
      Act of 1933, as amended, or other public disclosure requirements, and the other
      limitations imposed thereby on the disposition of shares of the
      Parent.  Additionally, “affiliates” owning shares will be subject to
      additional restrictions limiting sales.

    

    12.3                      Limited
      Public Market for Common Shares.  The Company acknowledges that
      the Parent’s Common Stock currently has a limited public market in which the
      shares may be liquidated and there is no assurance that such pubic market will
      grow or develop.

    

    ARTICLE
      XIII

    CLOSING

    

    13.1                      Time.  The
      Closing of this transaction shall be effective on such date set by the parties,
      on only after approval of the Merger by the respective Boards or Directors,
      and
      Shareholders if applicable.  Such date is referred to in this
      agreement as the “Closing Date.”  If the Closing of the Merger does
      not occur by June 12, 2007, this Agreement and the obligations of the parties
      to
      each other will terminate unless extended by them in writing.

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    13.2                      Documents
      To Be Delivered by the Company.  At the Closing the Company shall
      deliver to Parent the following documents:

    

    (a)           A
      certificate signed by the President of the Company that the representations
      and
      warranties made by the Company in this Agreement are true and correct on and
      as
      of the Closing Date with the same effect as though such representations and
      warranties had been made on or given on and as of the Closing Date and that
      the
      Company has performed and complied with all of their obligations under this
      Agreement which are to be performed or complied with by or prior to or on the
      Closing Date.

    

    (b)           A
      copy of the by-laws of the Company certified by its secretary and a copy of
      the
      certificate of incorporation of the Company.

    

    (c)           Such
      other documents of transfer, certificates of authority and other documents
      as
      Parent may reasonably request.

    

    (d)           A
      certified copy of the duly adopted resolutions of the board of directors and
      of
      the shareholders of the Company authorizing or ratifying the execution and
      performance of this Agreement and authorizing or ratifying the acts of its
      officers and employees in carrying out the terms and provisions
      thereof.

    

    13.3                      Documents
      To Be Delivered by Parent.  At the Closing Parent shall deliver to
      the Company the following documents:

    

    (a)           Certificates
      for the number of shares of common stock of Parent as determined in Article
      1
      hereof.

    

    

    (c)           A
      certified copy of the duly adopted resolutions of the board of directors of
      Parent authorizing or ratifying the execution and performance of this Agreement
      and authorizing or ratifying the acts of its officers and employees in carrying
      out the terms and provisions thereof.

    

    (d)           A
      certificate signed by the President of the Parent that the representations
      and
      warranties made by the Parent in this Agreement are true and correct on and
      as
      of the Closing Date with the same effect as though such representations and
      warranties had been made on or given on and as of the Closing Date and that
      the  Parent has performed and complied with all of their obligations
      under this Agreement which are to be performed or complied with by or prior
      to
      or on the Closing Date.

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    13.4                      Documents
      for the appointment of new management and the resignation of

    current
      management.

    

    

    

    ARTICLE
      XIV

    TERMINATION
      AND ABANDONMENT

    

    14.1                      This
      Agreement may be terminated and the transaction provided for by this Agreement
      may be abandoned without liability on the part of any part to any other, at
      any
      time before the Closing Date, or on a post closing basis as provided previously
      herein:

    

    (a)           By
      mutual consent of Parent and the Company;

    

    (b)           By
      Parent if any of the conditions provided for in Article IX of this Agreement
      have not been met and have not been waived in writing by Parent.

    

    14.2                      By
      the Company if any of the conditions provided for in Article X of this Agreement
      have not been met and have not been waived in writing by the
      Company.

    

    In
      the event of termination and
      abandonment by any party as above provided in this Article, written notice
      shall
      forthwith be given to the other party, and each party shall pay its own expenses
      incident to preparation for the consummation of this Agreement and the
      transactions contemplated hereunder.

    

    ARTICLE
      XV

    MISCELLANEOUS

    

    15.1                      Notices.  All
      notices, requests, demands and other communications hereunder shall be deemed
      to
      have been duly given, if delivered by hand or mailed, certified or registered
      mail with postage prepaid:

    

    (a)           If
      to the Company, to Mark A. Libratore, at  2979 SE Gran Park Way,
      Stuart, Florida 34997, or to such other person and place as the Company shall
      furnish to Parent in writing; or

    

    (b)           If
      to Parent, to Rubin Rodriguez, c/o Nathan W. Drage, P.C., 4766 Holladay Blvd.,
      Holladay, Utah 84117, or to such other person and place as Parent shall furnish
      to Company in writing.

    

    15.2                      Announcements.  Announcements
      concerning the transactions provided for in this Agreement by either the Company
      or Parent shall be subject to the approval of the other in all essential
      respects, except that the approval of the Company shall not be required as
      to
      any statements and other information which Parent may submit to its
      shareholders.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

               15.3                      Default.  Should
      any party to this Agreement default in any of the covenants, conditions, or
      promises contained herein, the defaulting party shall pay all costs and
      expenses, including a reasonable attorney’s fee, which may arise or accrue from
      enforcing this Agreement, or in pursuing any remedy provided hereunder or by
      the
      statutes of the State of Nevada, United States of America.

    

    15.4                      Assignment.  This
      Agreement may not be assigned in whole or in part by the parties hereto without
      the prior written consent of the other party or parties, which consent shall
      not
      be unreasonably withheld.

    

    15.5                      Successors
      and Assigns.  This Agreement shall be binding upon and shall inure
      to the benefit of the parties hereto, their successors and assigns.

    

    15.6                      Holidays.  If
      any obligation or act required to be performed hereunder shall fall due on
      a
      Saturday, Sunday or other day which is a legal holiday established by the State
      of Nevada, such obligation or act may be performed on the next succeeding
      business day with the same effect as if it had been performed upon the day
      appointed.

    

    15.7                      Computation
      of Time.  The time in which any obligation or act provided by this
      Agreement is to be performed is computed by excluding the first day and
      including the last, unless the last day is a holiday, in which event such day
      shall also be excluded.

    

    15.8                      Governing
      Law and Venue.  This Agreement shall be governed by and
      interpreted pursuant to the laws of the State of Nevada.  Any action
      to enforce the provisions of this Agreement shall be brought in a federal or
      state court of competent jurisdiction within the State of Nevada and in no
      other
      place.

    

    15.9                      Partial
      Invalidity.  If any term, covenant, condition or provision of this
      Agreement or the application thereof to any person or circumstance shall to
      any
      extent be invalid or unenforceable, the remainder of this Agreement or
      application of such term or provision to persons or circumstances other than
      those as to which it is held to be invalid or unenforceable shall not be
      affected thereby and each term, covenant, condition or provision of this
      Agreement shall be valid and shall be enforceable to the fullest extent
      permitted by law.

    

    15.10                      No
      Other Agreements.  This Agreement constitutes the entire Agreement
      between the parties and there are and will be no oral representations which
      will
      be binding upon any of the parties hereto.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    15.11                      Rights
      are Cumulative.  The rights and remedies granted hereunder shall
      be in addition to and cumulative of any other rights or remedies provided under
      the laws of the State of Nevada.

    

    15.12                      Waiver.  No
      delay or failure in the exercise of any power or right shall operate as a waiver
      thereof or as an acquiescence in default.  No single or partial
      exercise of any power or right hereunder shall preclude any other or further
      exercise thereof or the exercise of any other power or right.

    

    15.13                      Survival
      of Covenants, Etc.  All covenants, representations, and warranties
      made herein to any parties or in any statement or document delivered to any
      party hereto, shall survive the making of this Agreement and shall remain in
      full force and effect until the obligations of such party hereunder have been
      fully satisfied.

    

    15.14                      Further
      Action.  The parties hereto agree to execute and deliver such
      additional documents and to take such other and further action as may be
      required to carry out fully the transaction(s) contemplated herein.

    

    15.15                      Amendment.  This
      Agreement or any provision hereof may not be changed, waived, terminated or
      discharged except by means of a written supplemental instrument signed by the
      party or parties against whom enforcement of the change, waiver, termination,
      or
      discharge is sought.

    

    15.16                      Headings.  The
      descriptive headings of the various Sections or parts of this Agreement are
      for
      convenience only and shall not affect the meaning or construction of any of
      the
      provisions hereof.

    

    15.17                      Counterparts.  This
      agreement may be executed in two or more partially or fully executed
      counterparts, each of which shall be deemed an original and shall bind the
      signatory, but all of which together shall constitute but one and the same
      instrument, provided that Parent shall have no obligations hereunder until
      all
      Company’s Shareholders have become signatories hereto.

    

    IN
      WITNESS WHEREOF, the parties hereto
      executed the foregoing Acquisition Agreement as of the day and year first above
      written.

    

    THE
      PARENT:

    LIBERATOR
      MEDICAL HOLDINGS,
      INC.

    

    By:
      ________________________________

    Rubin
      Rodriguez,
      President

    

    

    THE
      COMPANY:

    LIBERATOR
      MEDICAL SUPPLY,
      INC.

    

    By:
      ________________________________

    Mark
      Libratore, President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]