Document:

exv4w1

Exhibit 4.1

INTERSTATE HOTELS & RESORTS, INC.

AND

COMPUTERSHARE TRUST COMPANY, N.A.

TAX BENEFIT PRESERVATION PLAN

Dated as of September 24, 2009

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	Section 1. Certain Definitions
	 	 	1	 
	Section 2. Appointment of Rights Agent
	 	 	7	 
	Section 3. Issue of Right Certificates
	 	 	7	 
	Section 4. Form of Right Certificates
	 	 	9	 
	Section 5. Countersignature and Registration
	 	 	9	 
	Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated Destroyed, Lost or Stolen Right           Certificates
	 	 	9	 
	Section 7. Exercise of Rights, Purchase Price; Expiration Date of Rights
	 	 	10	 
	Section 8. Cancellation and Destruction of Right Certificates
	 	 	11	 
	Section 9. Availability of Shares of Preferred Stock
	 	 	12	 
	Section 10. Preferred Stock Record Date
	 	 	13	 
	Section 11. Adjustment of Purchase Price, Number and Kind of Shares and Number of Rights
	 	 	13	 
	Section 12. Certificate of Adjusted Purchase Price or Number of Shares
	 	 	21	 
	Section 13. [Reserved]
	 	 	21	 
	Section 14. Fractional Rights and Fractional Shares
	 	 	21	 
	Section 15. Rights of Action
	 	 	23	 
	Section 16. Agreement of Right Holders
	 	 	23	 
	Section 17. Right Certificate Holder Not Deemed a Stockholder
	 	 	24	 
	Section 18. Concerning the Rights Agent
	 	 	24	 
	Section 19. Merger or Consolidation or Change of Name of Rights Agent
	 	 	24	 
	Section 20. Duties of Rights Agent
	 	 	25	 
	Section 21. Change of Rights Agent
	 	 	27	 
	Section 22. Issuance of New Right Certificates
	 	 	27	 
	Section 23. Redemption
	 	 	28	 
	Section 24. Exchange
	 	 	29	 
	Section 25. Notice of Certain Events
	 	 	30	 
	Section 26. Notices
	 	 	31	 
	Section 27. Supplements and Amendments
	 	 	31	 
	Section 28. Successors
	 	 	32	 
	Section 29. Benefits of this Plan
	 	 	32	 

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	 	 	PAGE	 
	Section 30. Process to Seek Exemption
	 	 	32	 
	Section 31. Determinations and Actions by the Board of Directors
	 	 	33	 
	Section 32. Severability
	 	 	33	 
	Section 33. Governing Law
	 	 	33	 
	Section 34. Counterparts
	 	 	33	 
	Section 35. Descriptive Headings
	 	 	33	 
	Section 36. Force Majeure
	 	 	33	 

Exhibit A — Form of Right Certificate

Exhibit B — Summary of Rights To Purchase Shares of Preferred Stock of Interstate Hotels & Resorts, Inc.

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TAX BENEFIT PRESERVATION PLAN

     Tax Benefit Preservation Plan, dated as of September 24, 2009 (“Plan”), between Interstate
Hotels & Resorts, Inc., a Delaware corporation (the “Company”), and Computershare Trust Company,
N.A., as Rights Agent (the “Rights Agent”).

     The Company has generated net operating loss carryovers and federal tax credit carryovers for
United States federal income tax purposes (“NOLs”), which will potentially provide valuable Tax
Benefits (as defined below) to the Company. The ability to utilize the NOLs or federal tax
deductions that may be deemed Built-in Losses to offset taxable income may be limited or impaired
by a future “ownership change” within the meaning of Section 382 (as defined below). The Company
desires to deter such an “ownership change” and thereby preserve the ability to utilize the NOLs
and the federal tax deductions that may be deemed Built-in Losses. In furtherance of such
objective, the Company desires to enter into this Plan.

     The Board of Directors of the Company (the “Board”) has declared a dividend of one preferred
share purchase right (a “Right”) for each share of Common Stock (as hereinafter defined) of the
Company outstanding as of the Close of Business (as defined below) on October 8, 2009 (the “Record
Date”), each Right initially representing the right to purchase one one-hundredth (subject to
adjustment) of a share of Preferred Stock (as hereinafter defined), upon the terms and subject to
the conditions herein set forth, and has further authorized and directed the issuance of one Right
(subject to adjustment as provided herein) with respect to each share of Common Stock that shall
become outstanding between the Record Date and the earlier of the Distribution Date and the
Expiration Date (as such terms are hereinafter defined); provided, however, that Rights may be
issued with respect to shares of Common Stock that shall become outstanding after the Distribution
Date and prior to the Expiration Date in accordance with Section 22.

     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 Plan, the following terms have the meaning indicated:

          (a) “Acquiring Person” shall mean any Person (other than any Exempt Person) that has become,
in itself or, together with all Affiliates and Associates of such Person, the Beneficial Owner of
4.99% or more of the shares of Common Stock then outstanding; provided, however, that any Existing
Holder (as defined below) will not be deemed to be an Acquiring Person for any purpose of this Plan
on and after the date on which the adoption of this Plan is first publicly announced unless and
until such time as such Existing Holder acquires Beneficial Ownership of additional shares of
Common Stock representing .1% of the Common Stock then outstanding, unless, upon becoming the
Beneficial Owner of such additional shares of Common Stock, such Person is not then the Beneficial
Owner of 4.99% or more of the shares of Common Stock then outstanding; provided, further, that a
Person will not be deemed to have become an Acquiring Person solely as a result of (i) a reduction
in the number of shares of Common Stock outstanding, (ii) the exercise of any options, warrants,
rights or similar interests
(including restricted stock)

 

granted by the Company to its directors, officers and employees,
(iii) any unilateral grant of any security by the Company or any issuance by the Company of shares
of its capital stock to such Person, or (iv) an Exempt Transaction, unless and until such time as
such Person thereafter acquires Beneficial Ownership of one additional share of Common Stock (other
than pursuant to a dividend or distribution paid or made by the Company on the outstanding Common
Stock or pursuant to a split or subdivision of the outstanding Common Stock), unless, upon becoming
the Beneficial Owner of such additional share of Common Stock, such Person is not then the
Beneficial Owner of 4.99% or more of the shares of Common Stock then outstanding. Notwithstanding
the foregoing, if the Board determines in good faith that a Person who would otherwise be an
“Acquiring Person,” as defined pursuant to the foregoing provisions of this Section 1(a),
has become such inadvertently (including, without limitation, because (A) such Person was unaware
that it beneficially owned a percentage of Common Stock that would otherwise cause such Person to
be an “Acquiring Person” or (B) such Person was aware of the extent of its Beneficial Ownership of
Common Stock but had no actual knowledge of the consequences of such Beneficial Ownership under
this Plan), and such Person divests as promptly as practicable a sufficient number of shares of
Common Stock so that such Person would no longer be an Acquiring Person, as defined pursuant to the
foregoing provisions of this Section 1(a), then such Person shall not be deemed to be or to
have become an “Acquiring Person” for purposes of this Plan as a result of such inadvertent
acquisition. For all purposes of this Plan, any calculation of the number of shares of Common
Stock outstanding at any particular time, including for purposes of determining the particular
percentage of the outstanding shares of Common Stock of which any Person is the Beneficial Owner,
shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and
Regulations under the Exchange Act (as defined below) as in effect on the date hereof.

          (b) “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in
Rule 12b-2 of the General Rules and Regulations under the Exchange Act, as in effect on the date
hereof, and to the extent not included within the foregoing clause of this Section 1(b),
shall also include, with respect to any Person, any other Person (whether or not an Exempt Person)
whose shares of Common Stock would be deemed constructively owned by such first Person, owned by a
single “entity” as defined in Section 1.382-3(a)(1) of the Treasury Regulations, or otherwise
aggregated with shares owned by such first Person pursuant to the provisions of the Code, or any
successor provision or replacement provisions to Section 382, and the Treasury Regulations
thereunder, provided, however, that a Person shall not be deemed to be the Affiliate or Associate
of another Person solely because either or both Persons are or were directors of the Company.

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

               (i) which such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has the right to acquire (whether such right is exercisable immediately or only after
the passage of time) pursuant to any agreement, arrangement or understanding (whether or not in
writing) (including any purchase orders for shares of Common Stock initiated prior to the first
public announcement of the adoption of this Plan) or upon the exercise of conversion rights,
exchange rights, warrants, options, or other rights (in each case, other than upon exercise or
exchange of the Rights); provided, however, that a Person shall not
be deemed the “Beneficial Owner” of, or to “beneficially own” securities

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(including rights,options or warrants) which are convertible or exchangeable into or exercisable for Common Stock
until such time as such securities are converted or exchanged into or exercised for Common Stock
except to the extent the acquisition or transfer of such rights, options or warrants would be
treated as exercised on the date of its acquisition or transfer under Section 1.382-4(d) of the
Treasury Regulations; provided, further, 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 such
Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted
for purchase or exchange;

               (ii) which such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has or shares the right to vote or dispose of, or has “beneficial ownership” of (as
defined under Rule 13d-3 of the General Rules and Regulations under the Exchange Act), including
pursuant to any agreement, arrangement or understanding (whether or not in writing), but only if
the effect of such agreement, arrangement or understanding is to treat such Persons as an “entity”
under Section 1.382-3(a)(1) of the Treasury Regulations; or

               (iii) of which any other Person is the Beneficial Owner, if such Person or any of such
Person’s Affiliates or Associates has any agreement, arrangement or understanding (whether or not
in writing) with such other Person (or any of such other Person’s Affiliates or Associates) with
respect to acquiring, holding, voting or disposing of such securities of the Company, but only if
the effect of such agreement, arrangement or understanding is to treat such Persons as an “entity”
under Section 1.382-3(a)(1) of the Treasury Regulations; provided, however, that a Person shall not
be deemed the Beneficial Owner of, or to beneficially own, any security (A) if such Person has the
right to vote such security pursuant to an agreement, arrangement or understanding (whether or not
in writing) which (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 or Schedule 13G under the Exchange Act (or any comparable or successor
report), or (B) if such Beneficial Ownership arises solely as a result of such Person’s status as a
“clearing agency,” as defined in Section 3(a)(23) of the Exchange Act; provided, further, that
nothing in this Section 1(c) shall cause a Person engaged in business as an underwriter of
securities or member of a selling group to be the Beneficial Owner of, or to beneficially own, any
securities acquired through such Person’s participation in good faith in an underwriting syndicate
until the expiration of 40 calendar days after the date of such acquisition, or such later date as
the Board may determine in any specific case.

Notwithstanding anything herein to the contrary, to the extent not within the foregoing provisions
of this Section 1(c), a Person shall be deemed the Beneficial Owner of, and shall be deemed
to beneficially own or have Beneficial Ownership of, securities which such Person would be deemed
to constructively own or which otherwise would be aggregated with shares owned by such Person
pursuant to Section 382 of the Code, or any successor provision or replacement provision and the
Treasury Regulations thereunder.

          (d) “Board” shall have the meaning set forth in the recitals hereto.

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          (e) “Book Entry” shall mean an uncertificated book entry for the Common Stock.

          (f) “Built-in Loss” shall have the meaning set forth in Section 382(h) of the Code.

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

          (h) “Capital Stock” when used with reference to any Person other than the Company shall mean
the common stock (or, in the case of any entity other than a corporation, the equivalent equity
interest) with the greatest voting power of such other Person or, if such other Person is a
Subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned
Person.

          (i) “Certificate of Incorporation” shall mean the Amended and Restated Certificate of
Incorporation of the Company (formerly MeriStar Hotels & Resorts, Inc.), as filed with the
Secretary of State of the State of Delaware on July 22, 1998, as amended by that certain
Certificate of Designation of Series A Junior Participating Preferred Stock, as filed with the
Secretary of State of the State on July 27, 1998 and as further amended and restated from time to
time.

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

          (k) “Code” shall mean the Internal Revenue Code of 1986, as amended.

          (l) “Common Stock” when used with reference to the Company shall mean the Common Stock, par
value $0.01 per share, of the Company.

          (m) “Common Stock Equivalents” shall have the meaning set forth in Section 11(a)(iii)
hereof.

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

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

          (p) “Equivalent Preferred Shares” shall have the meaning set forth in Section 11(b)
hereof.

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

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

          (s) “Exempt Person” shall mean (i) the Company or any Subsidiary (as such term is hereinafter
defined) of the Company, in each case including, without limitation, in its fiduciary capacity,
(ii) any employee benefit and/or savings plan of the Company or of any Subsidiary of the Company,
or (iii) any entity or trustee holding (or acting in a fiduciary capacity in respect of) Common
Stock for or pursuant to the terms of any such plan or for the purpose of funding any such plan or
funding other benefits for employees of the Company or of any Subsidiary of the Company.

          (t) “Exempt Transaction” shall mean any transaction that the Board, in its sole discretion,
has declared exempt pursuant to Section 30, which determination shall be irrevocable with
respect to such transaction.

          (u) “Existing Holder” shall mean any Person who, together with all Affiliates and Associates,
beneficially owned 4.99% or more of the shares of Common Stock then outstanding immediately prior
to the first public announcement hereof.

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

          (w) “NASDAQ” shall mean The Nasdaq Stock Market.

          (x) “New York Stock Exchange” shall mean the New York Stock Exchange, Inc.

          (y) “NOLs” shall have the meaning set forth in the recitals hereto.

          (z) “Person” shall mean any individual, firm, corporation, partnership, limited liability
company, limited liability partnership, trust or other legal entity, group of persons making a
“coordinated acquisition” of shares or otherwise treated as an entity within the meaning of Section
1.382-3(a)(1) of the Treasury Regulations or otherwise, and includes any successor (by merger or
otherwise) of such individual or entity.

          (aa) “Plan” shall have the meaning ascribed thereto in the preamble to this Plan, and such
term shall include all amendments to this Plan.

          (bb) “Preferred Stock” shall mean the Series A Junior Participating Preferred Stock, par value
$0.01 per share, of the Company having the rights and preferences set forth in the Certificate of
Incorporation.

          (cc) “Purchase Price” shall have the meaning set forth in Section 7(b) hereof.

          (dd) “Record Date” shall have the meaning set forth in the preamble hereto.

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

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

          (gg) “Right” shall have the meaning set forth in the recitals hereto.

          (hh) “Right Certificate” shall have the meaning set forth in Section 3 hereof.

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

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

          (kk) “Section 382” shall mean Section 382 of the Code, or any comparable successor provision.

          (ll) “Spread” shall have the meaning set forth in Section 11(a)(iii) hereof.

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

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

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

          (pp) “Summary of Rights” shall have the meaning set forth in Section 3 hereof.

          (qq) “Tax Benefits” shall mean the net operating loss carryovers, capital loss carryovers,
general business tax credit carryovers, alternative minimum tax credit carryovers and foreign tax
credit carryovers, as well as any loss or deduction attributable to a Built-in Loss, of the Company
or any of its Subsidiaries.

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

-6-

 

          (ss) “Treasury Regulations” shall mean final, temporary and proposed income tax regulations
promulgated under the Code, including any amendments thereto.

     Any determination required by the definitions in the Plan shall be made by the Board in its
good faith judgment, which determination shall be binding on the Rights Agent and the holders of
Rights.

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. The Company may from time to time appoint such co-Rights
Agents as it may deem necessary or desirable, upon ten (10) days’ prior written notice to the
Rights Agent. The Rights Agent shall have no duty to supervise, and shall in no event be liable
for, the acts or omissions of any such co-Rights Agent.

Section 3. Issue of Right Certificates.

          (a) Until the earlier of (i) the Close of Business on the tenth Business Day after the Stock
Acquisition Date or (ii) the Close of Business on the tenth Business Day (or, unless the
Distribution Date shall have previously occurred, such later date as may be specified by the Board)
after the commencement by any Person (other than an Exempt Person) of, or of the first public
announcement of the intention of such Person to commence, a tender or exchange offer, the
consummation of which would result in any Person (other than an Exempt Person) becoming an
Acquiring Person (the earlier of such dates being referred to as the “Distribution Date”; provided,
however, that if either of such dates occurs after the date of this Plan and on or prior to the
Record Date, then the Distribution Date shall be the Record Date), (x) the Rights will be evidenced
(subject to the provisions of Section 3(b) hereof) by the certificates representing the
Common Stock registered in the names of the holders thereof (or by Book Entry shares in respect of
such Common Stock) and not by separate Right Certificates, and (y) the Rights will be transferable
only in connection with the transfer of Common Stock. As soon as practicable after the
Distribution Date, the Company will prepare and execute, the Rights Agent will countersign and the
Company will send or cause to be sent (and the Rights Agent will, if requested, send) by
first-class, postage-prepaid mail, to each record holder of Common Stock as of the close of
business on the Distribution Date (other than any Acquiring Person or any Associate or Affiliate of
an Acquiring Person), at the address of such holder shown on the records of the Company, a Right
Certificate, in substantially the form of Exhibit A hereto (a “Right Certificate”),
evidencing one Right (subject to adjustment as provided herein) for each share of Common Stock so
held. As of and after the Distribution Date, the Rights will be evidenced solely by such Right
Certificates.

          (b) As promptly as practicable following the Record Date, the Company will send a copy of a
Summary of Rights to Purchase Shares of Preferred Stock, in substantially the form of Exhibit
B hereto (the “Summary of Rights”), by first-class, postage-prepaid mail, to each record holder
of Common Stock as of the Close of Business on the Record Date (other than any Acquiring Person or
any Associate or Affiliate of any Acquiring Person), at the address of such holder shown on the
records of the Company. With respect to certificates representing
Common Stock (or Book Entry shares of Common Stock) outstanding as of the Record Date, until
the Distribution Date, the Rights will be evidenced by such
certificates registered in the names of
the holders thereof (or the Book Entry shares). Until the Distribution Date (or, if earlier, the
Expiration Date), the surrender for transfer of any certificate for Common Stock (or any Book Entry
shares of Common Stock) outstanding on the Record Date shall also constitute the transfer of the
Rights associated with the Common Stock represented by such certificate or Book Entry shares.

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          (c) Rights shall be issued in respect of all shares of Common Stock issued or disposed of
after the Record Date but prior to the earlier of the Distribution Date and the Expiration Date (or
in certain circumstances provided in Section 22 hereof, after the Distribution Date).
Certificates issued for Common Stock after the Record Date but prior to the earlier of the
Distribution Date and the Expiration Date (or in certain circumstances provided in Section
22 hereof, after the Distribution 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 Tax Benefit Preservation Plan
between Interstate Hotels & Resorts, Inc. (the “Company”) and
Computershare Trust Company, N.A. as Rights Agent, dated as of
September 24, 2009 and as amended from time to time (the “Plan”),
the terms of which are hereby incorporated herein by reference and a
copy of which is on file at the principal executive offices of the
Company. Under certain circumstances, as set forth in the Plan,
such Rights will be evidenced by separate certificates and will no
longer be evidenced by this certificate. The Company will mail to
the holder of this certificate a copy of the Plan without charge
after receipt of a written request therefor. Under certain
circumstances, as set forth in the Plan, Rights owned by or
transferred to any Person who is or becomes an Acquiring Person (as
defined in the Plan) and certain transferees thereof will become
null and void and will no longer be transferable.

     With respect to any Book Entry shares of Common Stock, such legend shall be included in a
notice to the registered holder of such shares in accordance with applicable law. With respect to
certificates containing the foregoing legend, or any notice of the foregoing legend delivered to
holders of Book Entry shares, until the Distribution Date the Rights associated with the Common
Stock represented by such certificates or Book Entry shares shall be evidenced by such certificates
or Book Entry shares alone, and the surrender for transfer of any such certificate or Book Entry
share, except as otherwise provided herein, shall also constitute the transfer of the Rights
associated with the Common Stock represented thereby. In the event that the Company purchases or
otherwise acquires any Common Stock after the Record Date but prior to the Distribution Date, any
Rights associated with such Common Stock shall be deemed canceled and retired so that the Company
shall not be entitled to exercise any Rights associated with the shares of Common Stock which are
no longer outstanding.

     Notwithstanding this paragraph (c), neither the omission of the legend required hereby, nor
the failure to deliver the notice of such legend, shall affect the enforceability of any part of
this Plan or the rights of any holder of the Rights.

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Section 4. Form of Right Certificates. The Right Certificates (and the form of election to
purchase shares and form of assignment to be printed on the reverse thereof) shall be substantially
in the form set forth in Exhibit A 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 Plan, or as may be required to
comply with any applicable law or with any rule or regulation made pursuant thereto or with any
rule or regulation of the New York Stock Exchange or of any other stock exchange or automated
quotation system on which the Rights may from time to time be listed or quoted, or to conform to
usage. Subject to the provisions of this Plan, the Right Certificates shall entitle the holders
thereof to purchase such number of one one-hundredths of a share of Preferred Stock as shall be set
forth therein at the Purchase Price (as determined pursuant to Section 7), but the amount
and type of securities purchasable upon the exercise of each Right and the Purchase Price thereof
shall be subject to adjustment as provided herein.

Section 5. Countersignature and Registration.

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

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

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

          (a) Subject to the provisions of this Plan, at any time after the Close of Business on the
Distribution Date and prior to the Close of Business on the 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 one
one-hundredths of a share of Preferred Stock (or, following such time, other securities, cash or
assets 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 or Right Certificates shall make such request in writing delivered to the
Rights Agent, and shall surrender the Right Certificate or Right Certificates to be transferred,
split up, combined or exchanged at the office or agency of the Rights Agent designated for such
purpose. Thereupon the Rights Agent, subject to the provisions of this Plan, 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.

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

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

          (a) Except as otherwise provided herein, the Rights shall become exercisable on the
Distribution Date, and thereafter the registered holder of any Right Certificate may, subject to
Section 11(a)(ii) hereof and except as otherwise provided herein, exercise the Rights
evidenced thereby in whole or in part 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 office
or agency of the Rights Agent designated for such purpose, together with payment of the Purchase
Price for each one-hundredth of a share of Preferred Stock (or other securities, cash or other
assets, as the case may be) as to which the Rights are exercised, at any time which is both after
the Distribution Date and prior to the time (the “Expiration Date”) that is the earliest of (i) the
Close of Business on September 24, 2012, (ii) the time at which the Rights are redeemed as provided
in Section 23 hereof (the “Redemption Date”), (iii) the time at which such Rights are
exchanged as provided in Section 24 hereof, (iv) the final adjournment of the Company’s
2010 annual meeting of stockholders if stockholder approval of this Plan has not been received
prior to such time, (v) the repeal of Section 382 or any successor statute if the Board determines
that this Plan is no longer necessary for the preservation of Tax Benefits, or (vi) the beginning
of a
taxable year of the Company to which the Board determines that no Tax Benefits may be carried
forward.

-10-

 

          (b) The Purchase Price shall be initially $3.25 for each one one-hundredth of a share of
Preferred Stock purchasable upon the exercise of a Right. The Purchase Price and the number of one
one-hundredths of a share of Preferred Stock or other securities or property to be acquired upon
exercise of a Right shall be subject to adjustment from time to time
as provided in Section
11 hereof and shall be payable in lawful money of the United States of America in accordance
with paragraph (c) of this Section 7.

          (c) Except as otherwise provided herein, upon receipt of a Right Certificate representing
exercisable Rights, with the form of election to purchase duly executed, accompanied by payment of
the aggregate Purchase Price for the number of shares of Preferred Stock 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 6 hereof, in cash or by certified check, cashier’s
check or money order payable to the order of the Company, the Rights Agent shall thereupon promptly
(i) (A) requisition from any transfer agent of the Preferred Stock, or make available if the Rights
Agent is the transfer agent for the Preferred Stock, certificates for the number of shares of
Preferred Stock to be purchased, and the Company hereby irrevocably authorizes its transfer agent
to comply with all such requests, or (B) requisition from a depositary agent appointed by the
Company depositary receipts representing interests in such number of shares of Preferred Stock as
are to be purchased (in which case certificates for the Preferred Stock represented by such
receipts shall be deposited by the transfer agent with the depositary agent), and the Company
hereby directs any such 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 of the cash requisitioned from the Company, promptly
deliver such cash to or upon the order of the registered holder of such Right Certificate.

          (d) Except as otherwise provided herein, in case the registered holder of any Right
Certificate shall exercise less than all of the Rights evidenced thereby, a new Right Certificate
evidencing Rights equivalent to the exercisable 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 Plan to the contrary, neither the Rights Agent nor the
Company shall be obligated to undertake any action with respect to a registered holder of Rights
upon the occurrence of any purported transfer or exercise of Rights pursuant to Section 6
hereof or this Section 7 unless such registered holder shall have (i) completed and signed
the certificate contained in the form of assignment or form of election to purchase set forth on
the reverse side of the Right Certificate surrendered for such transfer or exercise, and (ii)
provided such additional evidence of the identity of the Beneficial Owner (for the purposes of this
Section 7(e), as such term is defined in Rule 13d-3 or 13d-5 of the General
Rules and Regulations under the Exchange Act), former Beneficial Owner and/or Affiliates or
Associates thereof as the Company shall reasonably request.

-11-

 

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 Plan. 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 or cause to be destroyed such canceled Right Certificates, and in such case shall
deliver a certificate of destruction thereof to the Company.

Section 9. Availability of Shares of Preferred Stock.

          (a) The Company covenants and agrees that it will cause to be reserved and kept available out
of its authorized and unissued shares of Preferred Stock or any shares of Preferred Stock held in
its treasury, the number of shares of Preferred Stock that will be sufficient to permit the
exercise in full of all outstanding Rights.

          (b) So long as the shares of Preferred Stock (and, following the time that a person becomes an
Acquiring Person, shares of Common Stock and other securities) issuable upon the exercise of Rights
may be listed or admitted to trading on the New York Stock Exchange or listed on any other national
securities exchange or quotation system, 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 or admitted to trading on the New York Stock Exchange or listed on any other national
securities exchange or quotation system upon official notice of issuance upon such exercise.

          (c) From and after such time as the Rights become exercisable, the Company shall use its best
efforts, if then necessary, to permit the issuance of shares of Preferred Stock (and following the
time that a Person first becomes an Acquiring Person, shares of Common Stock and other securities)
upon the exercise of Rights, to register and qualify such shares of Preferred Stock (and following
the time that a Person first becomes an Acquiring Person, shares of Common Stock and other
securities) under the Securities Act and any applicable state securities or “Blue Sky” laws (to the
extent exemptions therefrom are not available), cause such registration statement and
qualifications to become effective as soon as possible after such filing and keep such registration
and qualifications effective until the earlier of (x) the date as of which the Rights are no longer
exercisable for such securities and (y) the Expiration Date. The Company may temporarily suspend,
for a period of time not to exceed ninety (90) days, the exercisability of the Rights in order to
prepare and file a registration statement under the Securities Act and permit it to become
effective. Upon 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. Notwithstanding any provision of this Plan to the contrary, the Rights
shall not be exercisable in any jurisdiction unless the requisite qualification or exemption in
such jurisdiction shall have been obtained and until a registration statement under the Securities
Act (if required) shall have been declared effective.

-12-

 

          (d) The Company covenants and agrees that it will take all such action as may be necessary to
ensure that all shares of Preferred Stock (and following the time that a Person first becomes an
Acquiring Person, shares of Common Stock and other securities) delivered upon exercise of Rights
shall, at the time of delivery of the certificates therefor (subject to payment of the Purchase
Price), be duly and validly authorized and issued and fully paid and nonassessable shares.

          (e) The Company further covenants and agrees that it will pay when due and payable any and all
federal and state transfer taxes and charges which may be payable in respect of the issuance or
delivery of the Right Certificates or of any shares of Preferred Stock (or shares of Common Stock
and other securities) upon the exercise of Rights. The Company shall not, however, be required to
pay any transfer tax or charge which may be payable in respect of any transfer or delivery of Right
Certificates to a Person other than, or the issuance or delivery of certificates or depositary
receipts for the Preferred Stock (or shares of Common Stock and other securities) 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 or depositary receipts for Preferred Stock (or
shares of Common Stock and other securities) upon the exercise of any Rights until any such tax or
charge shall have been paid (any such tax being payable by that holder of such Right Certificate at
the time of surrender) or until it has been established to the Company’s reasonable satisfaction
that no such tax or charge is due.

Section 10. Preferred Stock Record Date. Each Person in whose name any certificate for
Preferred Stock is issued upon the exercise of Rights shall for all purposes be deemed to have
become the holder of record of the shares of Preferred Stock 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 or charges )
was made; provided, however, that if the date of such surrender and payment is a date upon which
the Preferred Stock transfer books of the Company are closed, such Person shall be deemed to have
become the record holder of such shares on, and such certificate shall be dated, the next
succeeding Business Day on which such transfer books are open. Prior to the exercise of the Rights
evidenced thereby, the holder of a Right Certificate shall not be entitled to any rights of a
holder of Preferred Stock for which the Rights shall be exercisable, including, without limitation,
the right to vote or to receive dividends or other distributions, 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 and Number of Rights.
The Purchase Price, the number of shares of Preferred Stock or other securities or property
purchasable upon exercise of each Right and the number of Rights outstanding are subject to
adjustment from time to time as provided in this Section 11.

          (a)

               (i) In the event the Company shall at any time after the date of this Plan (A) declare a
dividend on the Preferred Stock payable in shares of Preferred Stock, (B) subdivide the outstanding
shares of Preferred Stock, (C) combine the outstanding shares of Preferred Stock into a smaller
number of shares of Preferred Stock or (D) issue any shares of its capital stock in a
reclassification of the Preferred Stock (including any such reclassification in connection with a
consolidation or merger in which the Company is the continuing or surviving corporation), except as
otherwise provided in this Section 11(a), the Purchase Price in effect at the time of the
record date for such dividend or of the effective date of such subdivision, combination or
reclassification, as the case may be, and the number and kind of
shares of capital stock

-13-

 

issuable
on such date, shall be proportionately adjusted so that the holder of any Right exercised after
such time shall be entitled to receive the aggregate number and kind of shares of capital stock
which, if such Right had been exercised immediately prior to such date and at a time when the
Preferred Stock transfer books of the Company were open, the holder would have owned upon such
exercise and been entitled to receive by virtue of such dividend, subdivision, combination or
reclassification.

               (ii) Subject to Section 24 of this Plan, and except as otherwise provided in this
Section 11(a)(ii) and Section 11(a)(iii), in the event that any Person becomes an
Acquiring Person, each holder of a Right shall thereafter have the right to receive, upon exercise
thereof at a price equal to the then-current Purchase Price, in accordance with the terms of this
Plan and in lieu of shares of Preferred Stock, such number of shares of Common Stock (or at the
option of the Company, such number of one-hundredths of a share of Preferred Stock) as shall equal
the result obtained by multiplying (x) the then-current Purchase Price, by (y) the number of
one-hundredths of a share of Preferred Stock for which a Right is then exercisable and dividing the
product of (x) and (y) by (z) 50% of the then-current per share market price of the Common Stock
(determined pursuant to Section 11(d) hereof) on the date of the occurrence of such event;
provided, however, that the Purchase Price (as so adjusted) and the number of shares of Common
Stock so receivable upon exercise of a Right shall thereafter be subject to further adjustment as
appropriate in accordance with this Section 11 hereof. Notwithstanding anything in this
Plan to the contrary, however, from and after the time (the “Invalidation Time”) when any Person
first becomes an Acquiring Person, any Rights that are beneficially owned by (x) any Acquiring
Person (or any Affiliate or Associate of any Acquiring Person), (y) a transferee of any Acquiring
Person (or any such Affiliate or Associate) who becomes a transferee after the Invalidation Time or
(z) a transferee of any Acquiring Person (or any such Affiliate or Associate) who became a
transferee prior to or concurrently with the Invalidation Time pursuant to either (I) a transfer
from the Acquiring Person to holders of its equity securities or to any Person with whom it has any
continuing agreement, arrangement or understanding regarding the transferred Rights or (II) a
transfer that the Board has determined is part of a plan, arrangement or understanding which has
the purpose or effect of avoiding the provisions of this paragraph, and subsequent transferees of
such Persons, shall be void without any further action and any holder of such Rights shall
thereafter have no rights whatsoever with respect to such Rights under any provision of this Plan.
The Company shall use all reasonable efforts to ensure that the provisions of this Section
11(a)(ii) 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. From and after the Invalidation
Time, no
Right Certificate shall be issued pursuant to Section 3 or Section 6 hereof
that represents Rights that are or have become void pursuant to the provisions of this paragraph,
and any Right Certificate delivered to the Rights Agent that represents Rights that are or have
become void pursuant to the provisions of this paragraph shall be canceled.

               (iii) The Company may at its option (or, if required to comply with its Certificate of
Incorporation, shall) substitute for a share of Common Stock issuable upon the exercise of Rights
in accordance with the foregoing subparagraph (ii) such number or fraction of shares of Preferred
Stock (or, if required to comply with its Certificate of Incorporation, equivalent shares of its
capital stock) having an aggregate current market value equal to the current per share market price
of a share of Common Stock. In the event that there shall be an

-14-

 

insufficient number of shares of
Common Stock authorized but unissued (and unreserved) to permit the exercise in full of the Rights
in accordance with the foregoing subparagraph (ii), the Board shall, with respect to such
deficiency, to the extent permitted by applicable law and any material agreements then in effect to
which the Company is a party, (A) determine the excess of (x) the value of the shares of Common
Stock issuable upon the exercise of a Right in accordance with the foregoing subparagraph (ii) (the
“Current Value”) over (y) the then-current Purchase Price multiplied by the number of
one-hundredths of a share of Preferred Stock for which a Right was exercisable immediately prior to
the time that the Acquiring Person became such (such excess, the “Spread”), and (B) with respect to
each Right (other than Rights which have become void pursuant to Section 11(a)(ii)), make
adequate provision to substitute for the shares of Common Stock issuable in accordance with
subparagraph (ii) upon exercise of the Right and payment of the applicable Purchase Price, (1)
cash, (2) a reduction in such Purchase Price, (3) shares of Preferred Stock or other equity
securities of the Company (including, without limitation, shares or fractions of shares of
preferred stock which, by virtue of having dividend, voting and liquidation rights substantially
comparable to those of the shares of Common Stock, are deemed in good faith by the Board to have
substantially the same value as the shares of Common Stock (such shares of preferred stock and
shares or fractions of shares of preferred stock are hereinafter referred to as “Common Stock
Equivalents”)), (4) debt securities of the Company, (5) other assets, or (6) any combination of the
foregoing, having a value which, when added to the value of the shares of Common Stock actually
issued upon exercise of such Right, shall have an aggregate value equal to the Current Value (less
the amount of any reduction in such Purchase Price), where such aggregate value has been determined
by the Board upon the advice of a nationally recognized investment banking firm selected in good
faith by the Board; provided, however, that if the Company shall not make adequate provision to
deliver value pursuant to clause (B) above within thirty (30) days following the date that the
Acquiring Person became such (the “Section 11(a)(ii) Trigger Date”), then the Company shall
be obligated to deliver, to the extent permitted by applicable law and any material agreements then
in effect to which the Company is a party, upon the surrender for exercise of a Right and without
requiring payment of such Purchase Price, shares of Common Stock (to the extent available), and
then, if necessary, such number or fractions of shares of Preferred Stock (to the extent available)
and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread.
If, within the thirty (30) day period referred to above the Board shall determine in good faith
that it is likely that sufficient additional shares of Common Stock could be authorized for
issuance upon exercise in full of the Rights, then, if the Board elects, such thirty (30) day
period may be extended to the extent necessary, but not more than ninety (90) days after the
Section 11(a)(ii) Trigger Date, in order that the Company may seek stockholder approval for
the authorization of
such additional shares (such thirty (30) day period, as it may be extended, is hereinafter
called the “Substitution Period”). To the extent that the Company determines that some action need
be taken pursuant to the second and/or third sentence of this Section 11(a)(iii), the
Company (x) shall provide, subject to Section 11(a)(ii) hereof and the last sentence of
this Section 11(a)(iii) 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 second sentence and to determine the
value thereof. In the event of any such suspension, the Company shall issue a public announcement
stating that

-15-

 

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 shares of Common Stock shall be the current per share
market price (as determined pursuant to Section 11(d)(i)) on the Section 11(a)(ii)
Trigger Date and the per share or fractional value of any “Common Stock Equivalent” shall be deemed
to equal the current per share market price of the Common Stock on such date. The Board may, but
shall not be required to, establish procedures to allocate the right to receive shares of Common
Stock upon the exercise of the Rights among holders of Rights pursuant to this Section
11(a)(iii).

          (b) In case the Company shall fix a record date for the issuance of rights, options or
warrants to all holders of Preferred Stock entitling them (for a period expiring within 45 calendar
days after such record date) to subscribe for or purchase Preferred Stock (or shares having similar
rights, privileges and preferences as the Preferred Stock (“Equivalent Preferred Shares”)) or
securities convertible into Preferred Stock or Equivalent Preferred Shares at a price per share of
Preferred Stock or Equivalent Preferred Shares (or having a conversion price per share, if a
security convertible into shares of Preferred Stock or Equivalent Preferred Shares) less than the
then current per share market price of the Preferred Stock (determined pursuant to Section
11(d) hereof) on such record date, the Purchase Price to be in effect after such record date
shall be determined by multiplying the Purchase Price in effect immediately prior to such record
date by a fraction, the numerator of which shall be the number of shares of Preferred Stock and
Equivalent Preferred Shares outstanding on such record date plus the number of shares of Preferred
Stock and Equivalent Preferred Shares which the aggregate offering price of the total number of
such 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 shares of Preferred Stock and Equivalent Preferred Shares outstanding
on such record date plus the number of additional shares of Preferred Stock and/or Equivalent
Preferred Shares to be offered for subscription or purchase (or into which the convertible
securities so to be offered are initially convertible); provided, however, that in no event shall
the consideration to be paid upon the exercise of one Right be less than the aggregate par value of
the shares of capital stock of the Company issuable upon exercise of one Right. In case such
subscription price may be paid in a consideration part 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 which shall be
binding on the Rights Agent. Shares of Preferred Stock and Equivalent Preferred Shares owned by or
held for the account of the Company shall not be deemed outstanding for the purpose of any such
computation. Such adjustment shall be made successively whenever such a record date is fixed; and
in the event that such rights, options or warrants are not so issued, the
Purchase Price shall be adjusted to be the Purchase Price which would then be in effect if
such record date had not been fixed.

          (c) In case the Company shall fix a record date for the making of a distribution to all
holders of the Preferred Stock (including any such distribution made in connection with a
consolidation or merger in which the Company is the continuing or surviving corporation) of
evidences of indebtedness or assets (other than a regular quarterly cash dividend or a dividend
payable in Preferred Stock) or subscription rights or warrants (excluding those referred to in
Section 11(b) hereof), the Purchase Price to be in effect after such record date shall be
determined by multiplying the Purchase Price in effect immediately prior to such record date by a
fraction, the numerator of which shall be the then-current

-16-

 

per share
market price of the Preferred
Stock (determined pursuant to 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 shall be binding on the Rights Agent) of the portion of
such assets or evidences of indebtedness so to be distributed or of such subscription rights or
warrants applicable to one share of Preferred Stock, and the denominator of which shall be such
current per share market price of the Preferred Stock; provided, however, that in no event shall
the consideration to be paid upon the exercise of one Right be less than the aggregate par value of
the shares of capital stock of the Company to be issued upon exercise of one Right. Such
adjustments shall be made successively whenever such a record date is fixed; and in the event that
such distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase
Price that would then be in effect if such record date had not been fixed.

          (d)

               (i) Except as otherwise provided herein, for the purpose of any computation hereunder, the
“current per share market price” of any security (a “Security” for the purpose of this Section
11(d)) on any date shall be deemed to be the average of the daily closing prices per share of
such Security for the 30 consecutive Trading Days (as such term is hereinafter defined) immediately
prior to such date; provided, however, that in the event that the current per share market price of
the Security is determined during a period following the announcement by the issuer of such
Security of (A) a dividend or distribution on such Security payable in shares of such Security or
securities convertible into such shares, or (B) any subdivision, combination or reclassification of
such Security, and prior to the expiration of 30 Trading Days after the ex-dividend date for such
dividend or distribution, or the record date for such subdivision, combination or reclassification,
then, and in each such case, the current per share market price shall be appropriately adjusted to
reflect the current market price per share equivalent of such Security. The closing price for each
day shall be the last sale price, regular way, or, in case no such sale takes place on such day,
the average of the closing bid and asked prices, regular way, in either case as reported by the
principal consolidated transaction reporting system with respect to securities listed or admitted
to trading on the New York Stock Exchange or NASDAQ or, if the Security is not listed or admitted
to trading on the New York Stock Exchange or NASDAQ, as reported in the principal consolidated
transaction reporting system with respect to securities listed on the principal national securities
exchange on which the Security is listed or admitted to trading or, if the Security is not listed
or admitted to trading on any national securities exchange, the last quoted price or, if on such
date the Security is not so quoted or reported, the average of the high and low asked prices in the
over-the-counter market as reported by any system then in
use, or, if not so quoted, the average of the closing bid and asked prices as furnished by a
professional market maker making a market in the Security selected by the Board. The term “Trading
Day” shall mean a day on which the principal national securities exchange on which the Security is
listed or admitted to trading is open for the transaction of business or, if the Security is not
listed or admitted to trading on any national securities exchange, a Business Day.

               (ii) For the purpose of any computation hereunder, if the Preferred Stock is publicly traded,
the “current per share market price” of the Preferred Stock shall be determined in accordance with
the method set forth in Section 11(d)(i). If the Preferred Stock is not publicly traded
but the Common Stock is publicly traded, the “current per share market price” of the Preferred
Stock shall be conclusively deemed to be the current

-17-

 

per share
market price of the Common Stock as
determined pursuant to Section 11(d)(i) multiplied by the then applicable Adjustment Number
(as defined in and determined in accordance with the Certificate of Designation for the Preferred
Stock). If neither the Common Stock nor the Preferred Stock is publicly 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 shall be binding on
the Rights Agent.

          (e) No adjustment in the Purchase Price shall be required unless such adjustment would require
an increase or decrease of at least 1% in the Purchase Price; provided, however, that any
adjustments not required to be made by reason of this Section 11(e) shall be carried
forward and taken into account in any subsequent adjustment. All calculations under this
Section 11 shall be made to the nearest cent or to the nearest one ten-hundredth of a share
of Preferred Stock or share of Common Stock or other share or security as the case may be.
Notwithstanding the first sentence of this Section 11(e), any adjustment required by this
Section 11 shall be made no later than the earlier of (i) three years from the date of the
transaction which requires such adjustment or (ii) the Expiration Date. If as a result of an
adjustment made pursuant to Section 11(a) hereof, the holder of any Right thereafter
exercised shall become entitled to receive any shares of capital stock of the Company other than
the Preferred Stock, thereafter the Purchase Price and the number of such other shares so
receivable upon exercise of a Right shall be subject to adjustment from time to time in a manner
and on terms as nearly equivalent as practicable to the provisions with respect to the Preferred
Stock contained in Sections 11(a), 11(b), 11(c), 11(e), 11(h), 11(i) and 11(m) and the provisions
of Section 7, Section 9, Section 10, and Section 14 hereof with
respect to the Preferred Stock shall apply on like terms to any such other shares.

          (f) All Rights originally issued by the Company subsequent to any adjustment made to the
Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the
number of one one-hundredths of a share of Preferred Stock purchasable from time to time hereunder
upon exercise of the Rights, all subject to further adjustment as provided herein.

          (g) 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 Section
11(b) and Section 11(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 share of Preferred Stock (calculated to the nearest ten-
hundredth of a share of Preferred Stock) obtained by (i) multiplying (x) the number of
one-hundredths of a share of Preferred Stock purchasable upon the exercise of a Right immediately
prior to such adjustment by (y) the Purchase Price in effect immediately prior to such adjustment
of the Purchase Price and (ii) dividing the product so obtained by the Purchase Price in effect
immediately after such adjustment of the Purchase Price.

          (h) The Company may elect on or after the date of any adjustment of the Purchase Price or any
adjustment made to the number of shares of Preferred Stock for which a Right may be exercised
pursuant to Section 11(a)(i), Section 11(b) or Section 11(c) hereof to
adjust the number of Rights, in substitution for any adjustment in the number of one one-hundredths
of a share of Preferred Stock purchasable upon the exercise

-18-

 

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 share of Preferred Stock for which a Right was exercisable immediately
prior to such adjustment. Each Right held of record prior to such adjustment of the number of
Rights shall become that number of Rights (calculated to the nearest ten-hundredth) 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 may, 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 as a result of 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.

          (i) Irrespective of any adjustment or change in the Purchase Price or the number of one
one-hundredths of a share of Preferred Stock issuable upon the exercise of the Rights, the Right
Certificates theretofore and thereafter issued may continue to express the Purchase Price and the
number of one-hundredths of a share of Preferred Stock which were expressed in the initial Right
Certificates issued hereunder without effect on the Purchase Price payable to exercise a Right or
the number of one one-hundredths of a share of Preferred Stock issuable upon the exercise of a
Right as provided herein.

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

          (k) In any case in which this Section 11 shall require that an adjustment in the
Purchase Price be made effective as of a record date for a specified event, the Company may elect
to defer until the occurrence of such event issuing to the holder of any Right exercised after such
record date the Preferred Stock, Common Stock or other capital stock or securities of the Company,
if any, issuable upon such exercise over and above the Preferred Stock, Common Stock or 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.

-19-

 

          (l) Notwithstanding anything in this Section 11 to the contrary, the Company shall be
entitled to make such adjustments in the Purchase Price, in addition to those adjustments expressly
required by this Section 11, as and to the extent that the Board in its sole discretion
shall determine to be advisable in order that any consolidation or subdivision of the Preferred
Stock, issuance wholly for cash of any shares of Preferred Stock at less than the current market
price, issuance wholly for cash of Preferred Stock or securities which by their terms are
convertible into or exchangeable for Preferred Stock, dividends on Preferred Stock payable in
shares of Preferred Stock or issuance of rights, options or warrants referred to hereinabove in
Section 11(b), hereafter made by the Company to holders of its Preferred Stock shall not be
taxable to such stockholders.

          (m) Notwithstanding anything in this Plan to the contrary, in the event that at any time after
the date of this Plan and prior to the Distribution Date, the Company shall (i) declare and pay any
dividend on the Common Stock payable in Common Stock, or (ii) effect a subdivision, combination or
consolidation of the Common Stock (by reclassification or otherwise than by payment of a dividend
payable in Common Stock) into a greater or lesser number of shares of Common Stock, then, in any
such case, the number of Rights associated with each share of Common Stock then outstanding, or
issued or delivered thereafter, shall be proportionately adjusted so that the number of Rights
thereafter associated with each share of Common Stock following any such event shall equal the
result obtained by multiplying the number of Rights associated with each share of Common Stock
immediately prior to such event by a fraction the numerator of which shall be the total number of
shares of Common Stock outstanding immediately prior to the occurrence of the event and the
denominator of which shall be the total number of shares of Common Stock outstanding immediately
following the occurrence of such event.

          (n) The Company agrees that, after the earlier of the Distribution Date or the Stock
Acquisition 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 if at the time such
action is taken it is reasonably foreseeable that such action will diminish substantially or
eliminate the benefits intended to be afforded by the Rights.

-20-

 

Section 12. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an
adjustment is made as provided in Section 11 hereof, the Company shall promptly (a) prepare
a certificate setting forth such adjustment, and a brief statement of the facts accounting for such
adjustment, (b) file with the Rights Agent and with each transfer agent for the Common Stock or the
Preferred Stock a copy of such certificate and (c) mail a brief summary thereof to each holder of a
Right Certificate (or if prior to the Distribution Date, to each holder of a certificate
representing shares of Common Stock or Book Entry shares in respect thereof) in accordance with
Section 26 hereof. The Rights Agent shall be fully protected in relying on any such
certificate and on any adjustment therein contained and shall not be deemed to have knowledge of
any such adjustment unless and until it shall have received such certificate. Any adjustment to be
made pursuant to Section 11 hereof shall be effective as of the date of the event giving
rise to such adjustment.

Section 13. [Reserved].

Section 14. Fractional Rights and Fractional Shares.

          (a) The Company shall not be required to issue fractions of Rights (except prior to the
Distribution Date in accordance with Section 11(m) hereof) or to distribute Right Certificates
which evidence fractional Rights. In lieu of such fractional Rights, there shall be paid to the
registered holders of the Right Certificates with regard to which such fractional Rights would
otherwise be issuable, an amount in cash equal to the same fraction of the current market value of
a whole Right. For the purposes of this Section 14(a), the current market value of a whole
Right shall be the closing price of the Rights for the Trading Day immediately prior to the date on
which such fractional Rights would have been otherwise issuable. The closing price for any day
shall be the last sale price, regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, in either case as reported in the
principal consolidated transaction reporting system with respect to securities listed or admitted
to trading on the New York Stock Exchange or NASDAQ or, if the Rights are not listed or admitted to
trading on the New York Stock Exchange or NASDAQ, as reported in the principal consolidated
transaction reporting system with respect to securities listed on the principal national securities
exchange on which the Rights are listed or admitted to trading or, if the Rights are not listed or
admitted to trading on any national securities exchange, the last quoted price or, if not so
quoted, the average of the high bid and low asked prices in the over-the-counter market, as
reported by such system then in use or, if on any such date the Rights are not so quoted, 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 no such market maker is making a
market in the Rights, the fair value of the Rights on such date as determined in good faith by the
Board shall be used.

          (b) The Company shall not be required to issue fractions of Preferred Stock (other than
fractions which are integral multiples of one one-hundredth of a share of Preferred Stock) or to
distribute certificates which evidence fractional shares of Preferred Stock (other than fractions
which are integral multiples of one one-hundredth of a share of Preferred Stock) upon the exercise
or exchange of Rights. Interests in fractions of Preferred Stock in integral multiples of one
one-hundredth of a share of Preferred Stock may, at the election of the
Company, be evidenced

-21-

 

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 (for the purposes of this Section 14(b), as such
term is defined in Rule 13d-3 or 13d-5 of the General Rules and Regulations under the Exchange Act)
of the Preferred Stock represented by such depositary receipts. In lieu of fractional shares of
Preferred Stock that are not integral multiples of one one-hundredth of a share of Preferred Stock,
the Company shall pay to the registered holders of Right Certificates at the time such Rights are
exercised for shares of Preferred Stock as herein provided an amount in cash equal to the same
fraction of the current market value of one share of Preferred Stock. For the purposes of this
Section 14(b), the current market value of a share of Preferred Stock shall be the closing
price of a share of Preferred Stock (as determined pursuant to Section 11(d)(ii) hereof)
for the Trading Day immediately prior to the date of such exercise.

          (c) The Company shall not be required to issue fractions of shares of Common Stock or to
distribute certificates which evidence fractional shares of Common Stock upon the exercise or
exchange of Rights. In lieu of such fractional shares of Common Stock, the Company shall pay to
the registered holders of the Right Certificates at the time such Rights are exercised or exchanged
for shares of Common Stock as herein provided an amount in cash equal to the same fraction of the
current market value of a whole share of Common Stock (as determined in accordance with Section
11(d)(i) hereof), for the Trading Day immediately prior to the date of such exercise or
exchange.

          (d) The holder of a Right by the acceptance of the Right expressly waives his right to receive
any fractional Rights or any fractional shares upon exercise or exchange of a Right (except as
provided above).

-22-

 

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

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

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

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

          (c) the Company and the Rights Agent may deem and treat the Person in whose name the Right
Certificate (or, prior to the Distribution Date, the Common Stock certificate or (or Book Entry
shares in respect of Common Stock)) 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 Common Stock certificate (or notices provided to holders of Book Entry shares of Common
Stock) made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and
neither the Company nor the Rights Agent, subject to Section 7(e) hereof, shall be affected
by any notice to the contrary; and

          (d) notwithstanding anything in this Plan 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 Plan by reason of any preliminary or
permanent injunction or other order, judgment, decree or ruling (whether interlocutory or final)
issued by a court or by a governmental, regulatory, self-regulatory or administrative agency or
commission, or any statute, rule, regulation or executive order promulgated or enacted by any
governmental authority, prohibiting or otherwise restraining performance of such obligation;
provided, however, that the Company must use its reasonable best efforts to have any such
injunction, order, judgment, decree or ruling lifted or otherwise overturned as soon as possible.

-23-

 

Section 17. Right Certificate Holder Not Deemed a Stockholder. No holder, as such, of any
Right Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the
holder of the Preferred Stock or any other securities of the Company which may at any time be
issuable on the exercise or exchange of the Rights represented thereby, nor shall anything
contained herein or in any Right Certificate be construed to confer upon the holder of any Right
Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for
the election of directors or upon any matter submitted to stockholders at any meeting thereof, or
to give or withhold consent to any corporate action, or to receive notice of meetings or other
actions affecting stockholders (except as provided in this Plan), or to receive dividends or
subscription rights, or otherwise, until the Rights evidenced by such Right Certificate shall have
been exercised or exchanged 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 Plan 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 gross negligence, bad faith or willful misconduct on the part of the Rights Agent,
for anything done or omitted by the Rights Agent in connection with the acceptance and
administration of this Plan, including the costs and expenses of defending against any claim of
liability arising therefrom, directly or indirectly.

          (b) The Rights Agent shall be protected and shall incur no liability for, or in respect of any
action taken, suffered or omitted by it in connection with, its administration of this Plan in
reliance upon any Right Certificate or certificate for the Preferred Stock, the Common Stock or
for any other securities of the Company, instrument of assignment or transfer, power of attorney,
endorsement, affidavit, letter, notice, direction, consent, certificate, statement or other paper
or document reasonably believed by it to be genuine and to be signed, executed and, where
necessary, verified or acknowledged, by the proper Person or Persons, or otherwise upon the advice
of counsel as set forth in Section 20 hereof.

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

          (a) Any corporation or entity into which the Rights Agent or any successor Rights Agent may be
merged or with which it may be consolidated, or any entity corporation or resulting from any merger
or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any
corporation or entity succeeding to the stock transfer or corporate trust powers of the Rights
Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Plan
without the execution or filing of any paper or any further act on the part of any of the parties
hereto; provided that such corporation or entity 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 Plan, any of

-24-

 

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 Plan.

          (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 Plan.

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

          (a) The Rights Agent may consult with legal counsel (who may be legal counsel for the Company
and/or the Board), 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 Plan 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 the President and the Secretary of the Company (each, an “Authorized
Officer”) 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
Plan in reliance upon such certificate.

          (c) The Rights Agent shall be liable hereunder to the Company and any other Person only for
its own gross negligence, bad faith or willful misconduct.

          (d) The Rights Agent shall not be liable for or by reason of any of the statements of fact or
recitals contained in this Plan 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
Plan 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 Plan or in

-25-

 

any Right
Certificate; nor shall it be responsible for any change in
the exercisability of the Rights (including the Rights becoming void pursuant to Section
11(a)(ii) hereof) or any adjustment in the terms of the Rights (including the manner, method or
amount thereof) provided for in Section 3, Section 11, Section 23, and
Section 24, or the ascertaining of the existence of facts that would require any such
change or adjustment (except with respect to the exercise of Rights evidenced by Right Certificates
after receipt of a certificate furnished pursuant to Section 12, describing such change or
adjustment); nor shall it by any act hereunder be deemed to make any representation or warranty as
to the authorization or reservation of any shares of Preferred Stock or other securities to be
issued pursuant to this Plan or any Right Certificate or as to whether any shares of Preferred
Stock or other securities will, when issued, be validly authorized and issued, fully paid and
nonassessable.

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

          (g) The Rights Agent is hereby authorized and directed to accept instructions with respect to
the performance of its duties hereunder from any person reasonably believed by the Rights Agent to
be one of the Authorized Officers of the Company, and to apply to such Authorized Officers for
advice or instructions in connection with its duties, and it shall not be liable for any action
taken or suffered by it in good faith in accordance with instructions of any such Authorized
Officer or for any delay in acting while waiting for those instructions. Any application by the
Rights Agent for written instructions from the Company may, at the option of the Rights Agent, set
forth in writing any action proposed to be taken or omitted by the Rights Agent under this Plan and
the date on and/or after which such action shall be taken or such omission shall be effective. The
Rights Agent shall not be liable for any action taken by, or omission of, the Rights Agent in
accordance with a proposal included in any such application on or after the date specified in such
application (which date shall not be less than five Business Days after the date any Authorized
Officer of the Company actually receives such application unless any such Authorized Officer shall
have consented in writing to an earlier date) unless, prior to taking any such action (or the
effective date in the case of an omission), the Rights Agent shall have received written
instructions in response to such application specifying the action to be taken or omitted.

          (h) The Rights Agent and any stockholder, director, officer or employee of the Rights Agent
may buy, sell or deal in any of the Rights or other securities of the Company or have a pecuniary
interest 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
Plan. 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, that reasonable care was exercised in the selection and continued
employment thereof.

-26-

 

          (j) If, with respect to any Right Certificate surrendered to the Rights Agent for exercise or
transfer, the certificate contained in the form of assignment or the form of election to purchase
set forth on the reverse thereof, as the case may be, has not been completed to certify the holder
is not an Acquiring Person (or an Affiliate or Associate thereof) or a transferee thereof, 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 Plan upon 30 days’ notice in writing mailed to
the Company and, in the event that the Rights Agent or one of the Rights Agent’s Affiliates is not
also the transfer agent for the
Company, to each transfer agent of the Common Stock or Preferred Stock by registered or certified
mail. In the event the transfer agency relationship in effect between the Company and the Rights
Agent terminates, the Rights Agent will be deemed to have resigned automatically and be discharged
from its duties under this Plan as of the effective date of such termination, and the Company shall
be responsible for sending any required notice. 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 Stock or Preferred Stock
by registered or certified mail, and, following the Distribution Date, 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) a corporation or other entity organized and doing business under the
laws of the United States or any state thereof, which is authorized under such laws to exercise
corporate trust or stock transfer powers and is subject to supervision or examination by federal or
state authority and which has at the time of its appointment as Rights Agent a combined capital and
surplus of at least $50 million or (B) an affiliate of a corporation or entity described in clause
(A) of this sentence. After appointment, the successor Rights Agent shall be vested with the same
powers, rights, duties and responsibilities as if it had been originally named as Rights Agent
without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the
successor Rights Agent any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective
date of any such appointment the Company shall file notice thereof in writing with the predecessor
Rights Agent and each transfer agent of the Common Stock or Preferred Stock, and, following the
Distribution Date, mail a notice thereof in writing to the registered holders of the Right
Certificates. Failure to give any notice provided for in this Section 21, however, or any
defect therein, shall not affect the legality or validity of the resignation or removal of the
Rights Agent or the appointment of the successor Rights Agent, as the case may be.

Section 22. Issuance of New Right Certificates. Notwithstanding any of the provisions of
this Plan or of the Rights to the contrary, the Company may, at its option, issue new Right
Certificates evidencing Rights in such forms as may be approved by its Board to reflect any

-27-

 

adjustment or change in the Purchase Price and the number or kind or class of shares or other
securities or property purchasable under the Right Certificates made in accordance with the
provisions of this Plan. In addition, in connection with the issuance or sale of Common Stock
following the Distribution Date and prior to the Expiration Date, the Company may with respect to
shares of Common Stock so issued or sold pursuant to (i) the exercise of stock options, (ii) any
employee plan or arrangement, (iii) the exercise, conversion or exchange of securities, notes or
debentures issued by the Company or (iv) a contractual obligation of the Company, in each case
existing prior to the Distribution Date,
issue Right Certificates representing the appropriate number of Rights in connection with such
issuance or sale.

Section 23. Redemption.

          (a) The Board may, at any time prior to a Stock Acquisition Date, redeem all, but not less
than all, the then outstanding Rights at a redemption price of $0.001 per Right, appropriately
adjusted to reflect any stock split, stock dividend or similar transaction occurring in respect of
the Common Stock after the date hereof (the “Redemption Price”). The redemption of the Rights may
be made effective at such time, on such basis and with such conditions as the Board in its sole
discretion may establish. The Company may, at its option, pay the Redemption Price in cash, shares
of Common Stock (based on the current market price of the Common Stock at the time of redemption as
determined pursuant to Section 11(d)(i) hereof) or any other form of consideration deemed
appropriate by the Board.

          (b) Immediately upon the action of the Board ordering the redemption of the Rights pursuant to
paragraph (a) of this Section 23 (or at such later time as the Board may establish for the
effectiveness of such redemption), 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. Within 10 days after such action of the Board ordering the redemption of the Rights
(or such later time as the Board may establish for the effectiveness of such redemption), the
Company shall mail a notice of redemption to all the holders of the then outstanding Rights at
their last addresses as they appear upon the registry books of the Rights Agent or, prior to the
Distribution Date, on the registry books of the transfer agent for the Common Stock. Any notice
which is mailed in the manner herein provided shall be deemed given, whether or not the holder
receives the notice. Each such notice of redemption shall state the method by which the payment of
the Redemption Price will be made. The failure to give notice required by this Section
23(b) or any defect therein shall not affect the validity of the redemption or any other action
taken by the Company.

          (c) In the case of a redemption under Section 23(a) hereof, the Company may, at its
option, discharge all of its obligations with respect to the Rights by (i) issuing a press release
announcing the manner of redemption of the Rights and (ii) mailing payment of the Redemption Price
to the registered holders of the Rights at their last addresses as they appear on the registry
books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer
agent of the Common Stock, and upon such action, all outstanding Right Certificates shall be void
without any further action by the Company.

-28-

 

Section 24. Exchange.

          (a) The Board may, at its option, at any time after any Person first becomes an Acquiring
Person, exchange all or part of the then outstanding Rights (which shall not include Rights that
have not become effective or that have become void pursuant to the provisions of Section
11(a)(ii) hereof) for shares of Common Stock at an exchange ratio of one share of Common Stock
(or one-hundredth of a share of Preferred Stock) per Right, appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring
after the date hereof (such amount per Right 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 an Acquiring Person becomes the Beneficial Owner of shares of Common Stock
aggregating 50% or more of the voting power of the shares of Common Stock then outstanding. The
exchange 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. Prior to effecting an exchange
pursuant to this Section 24, the Board may direct the Company to enter into a Trust
Agreement in such form and with such terms as the Board shall then approve (the “Trust Agreement”).
If the Board so directs, the Company shall enter into the Trust Agreement and shall issue to the
trust created by such agreement (the “Trust”) all of the shares of Common Stock issuable pursuant
to the exchange, and all Persons entitled to receive shares pursuant to the exchange shall be
entitled to receive such shares (and any dividends or distributions made thereon after the date on
which such shares are deposited in the Trust) only from the Trust and solely upon compliance with
the relevant terms and provisions of the Trust Agreement. Any shares of Common Stock issued at the
direction of the Board in connection herewith shall be validly issued, fully paid and nonassessable
shares of Common Stock or Preferred Stock (as the case may be), and the Company shall be deemed to
have received as consideration for such issuance a benefit having a value that is at least equal to
the aggregate par value of the shares so issued.

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

-29-

 

          (c) The Company may at its option substitute, and, in the event that there shall not be
sufficient shares of Common Stock issued but not outstanding or authorized but unissued (and
unreserved) to permit an exchange of Rights as contemplated in
accordance with this Section
24 (or if the issuance of Common Stock in exchange for any Rights would not otherwise be
permitted under the Certificate of Incorporation), the Company shall substitute, to the extent of
such insufficiency or to the extent necessary to comply with its Certificate of Incorporation, for
each share of Common Stock that would otherwise be issuable upon exchange of a Right, a number of
shares of Preferred Stock or fraction thereof (or Equivalent Preferred Shares, as such term is
defined in Section 11(b), or other equivalent shares of its capital stock) such that the current
per share market price (determined pursuant to Section 11(d) hereof) of one share of
Preferred Stock (or Equivalent Preferred Share or other equivalent share) multiplied by
such number or fraction is equal to the current per share market price of one share of Common
Stock (determined pursuant to Section 11(d) hereof) as of the date of such exchange.

Section 25. Notice of Certain Events.

          (a) In case the Company shall at any time after the earlier of the Distribution Date or the
Stock Acquisition Date propose (i) to pay any dividend payable in stock of any class to the holders
of its Preferred Stock or to make any other distribution to the holders of its Preferred Stock
(other than a regular quarterly cash dividend), (ii) to offer to the holders of its Preferred Stock
rights or warrants to subscribe for or to purchase any additional shares of Preferred Stock or
shares of stock of any class or any other securities, rights or options, (iii) to effect any
reclassification of its Preferred Stock (other than a reclassification involving only the
subdivision or combination of outstanding Preferred Stock), (iv) to effect the liquidation,
dissolution or winding up of the Company, or (v) to declare or pay any dividend on the Common Stock
payable in Common Stock, to effect a subdivision, combination or consolidation of the Common Stock
(by reclassification or otherwise than by payment of dividends in Common Stock), then, in each such
case, the Company shall give to each holder of a Right Certificate, in accordance with Section
26 hereof, a notice of such proposed action, which shall specify the record date for the
purposes of such stock dividend or distribution or offering of rights or warrants, or the date on
which such liquidation, dissolution, winding up, reclassification, subdivision, combination or
consolidation is to take place and the date of participation therein by the holders of the Common
Stock and/or Preferred Stock, if any such date is to be fixed, and such notice shall be so given in
the case of any action covered by clause (i) or (ii) above at least 10 days prior to the record
date for determining holders of the Preferred Stock for purposes of such action, and in the case of
any such other action, at least 10 days prior to the date of the taking of such proposed action or
the date of participation therein by the holders of the Common Stock and/or Preferred Stock,
whichever shall be the earlier.

          (b) In case any event described in Section 11(a)(ii) shall occur then the Company
shall as soon as practicable thereafter give to each holder of a Right Certificate (or if occurring
prior to the Distribution Date, the holders of the Common Stock) in accordance with Section
26 hereof, a notice of the occurrence of such event, which notice shall describe such event and
the consequences of such event to holders of Rights under Section 11(a)(ii).

          (c) The failure to give notice required by this Section 25 or any defect therein shall
not affect the validity of the action taken by the Company or the vote upon any such action.

-30-

 

Section 26. Notices. Notices or demands authorized by this Plan 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 overnight delivery service or first-class mail, postage prepaid, addressed
(until another address is filed in writing with the Rights Agent) as follows:

INTERSTATE RESORTS & HOTELS, INC.

4501 North Fairfax Drive, Ste 500

Arlington, VA 22203

Attention: Secretary

     Subject to the provisions of Section 21 hereof, any notice or demand authorized by
this Plan 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 overnight delivery service or
first-class mail, postage prepaid, addressed (until another address is filed in writing with the
Company) as follows:

COMPUTERSHARE TRUST COMPANY, N.A.

250 Royall Street

Canton, MA 02021

Attention: Client Services

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

Section 27. Supplements and Amendments. Except as otherwise provided in this Section
27, for so long as the Rights are then redeemable, the Company may in its sole and absolute
discretion, and the Rights Agent shall if the Company so directs, supplement or amend any provision
of this Plan in any respect without the approval of any holders of the Rights. At any time when
the Rights are no longer redeemable, except as otherwise provided in this Section 27, the
Company may, and the Rights Agent shall, if the Company so directs, supplement or amend this Plan
without the approval of any holders of Rights, in order to (i) cure any ambiguity, (ii) correct or
supplement any provision contained herein which may be defective or inconsistent with any other
provisions herein, (iii) shorten or lengthen any time period hereunder, or (iv) change or
supplement the provisions hereunder in any manner which the Company may deem necessary or
desirable; provided, however, that no such supplement or amendment may adversely affect the
interests of the holders of Rights as such (other than an Acquiring Person or an Affiliate or
Associate of an Acquiring Person), and no such amendment may cause the Rights again to become
redeemable or cause this Plan again to become amendable other than in accordance with this
sentence. Notwithstanding anything contained in this Plan to the contrary, no supplement or
amendment shall be made which decreases the Redemption Price. Upon the delivery of a certificate
from an appropriate officer of the Company which states that the supplement or amendment is in
compliance with the terms of this Section 27, the Rights Agent shall promptly execute such
supplement or amendment, provided that any supplement or amendment does not adversely affect the
rights, duties or obligations of the Rights Agent under this Plan.
The Rights Agent hereby
acknowledges that in all matters arising under this Plan, including any amendment hereto pursuant
to this Section 27, time is of the essence.

-31-

 

Section 28. Successors. All the covenants and provisions of this Plan by or for the
benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective
successors and assigns hereunder.

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

Section 30. Process to Seek Exemption. Any Person who desires to effect any acquisition of
Common Stock that would, if consummated, result in such Person (together with its Affiliates and
Associates) beneficially owning 4.99% or more of the then-outstanding Common Stock (or, in the case
of an Existing Holder, additional shares of Common Stock representing .1% or more of the
then-outstanding Common Stock) (a “Requesting Person”) may, prior to the Stock Acquisition Date and
in accordance with this Section 30, request that the Board grant an exemption with respect
to such acquisition under this Plan so that such acquisition would be deemed to be an “Exempt
Transaction” for purposes of this Plan (an “Exemption Request”). An Exemption Request shall be in
proper form and shall be delivered by registered mail, return receipt requested, to the Secretary
of the Company at the principal executive office of the Company. To be in proper form, an
Exemption Request shall set forth (i) the name and address of the Requesting Person, (ii) the
number and percentage of shares of Common Stock then beneficially owned by the Requesting Person,
together with all Affiliates and Associates of the Requesting Person, and (iii) a reasonably
detailed description of the transaction or transactions by which the Requesting Person would
propose to acquire Beneficial Ownership of Common Stock aggregating 4.99% or more of the then
outstanding Common Stock (or, in the case of an Existing Holder, additional shares of Common Stock
representing .1% or more of the then-outstanding Common Stock) and the maximum number and
percentage of shares of Common Stock that the Requesting Person proposes to acquire. The Board
shall make a determination whether to grant an exemption in response to an Exemption Request as
promptly as practicable (and, in any event, within ten (10) Business Days) after receipt thereof;
provided, that the failure of the Board to make a determination within such period shall be deemed
to constitute the denial by the Board of the Exemption Request. The Board shall only grant an
exemption in response to an Exemption Request if the Board determines in its sole discretion that
the acquisition of Beneficial Ownership of Common Stock by the Requesting Person will not
jeopardize or endanger the availability to the Company of the Tax Benefits. Any exemption granted
hereunder may be granted in whole or in part, and may be subject to limitations or conditions
(including a requirement that the Requesting Person agree that it will not acquire Beneficial
Ownership of shares of Common Stock in excess of the maximum number and percentage of shares
approved by the Board), in each case as and to the extent the Board shall determine necessary or
desirable to provide for the protection of the Company’s Tax Benefits. Any Exemption Request may
be
submitted on a confidential basis and, except to the extent required
by applicable law, the  Company
shall maintain the confidentiality of such Exemption Request and the Board’s determination with
respect thereto.

-32-

 

Section 31. Determinations and Actions by the Board of Directors. The Board shall have the
exclusive power and authority to administer this Plan and to exercise the rights and powers
specifically granted to the Board or to the Company, or as may be necessary or advisable in the
administration of this Plan, including, without limitation, the right and power to (i) interpret
the provisions of this Plan and (ii) make all determinations deemed necessary or advisable for the
administration of this Plan (including, without limitation, a determination to redeem or not redeem
the Rights or to amend or not amend this Plan). All such actions, calculations, interpretations
and determinations that are done or made by the Board in good faith shall be final, conclusive and
binding on the Company, the Rights Agent, the holders of the Rights, as such, and all other
parties.

Section 32. Severability. If any term, provision, covenant or restriction of this Plan or
applicable to this Plan is held by a court of competent jurisdiction or other authority to be
invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions
of this Plan shall remain in full force and effect and shall in no way be affected, impaired or
invalidated; provided, however, that notwithstanding anything in this Plan to the contrary, if any
such term, provision, covenant or restriction is held by such court or authority to be invalid,
void or unenforceable and the Board determines in its good faith judgment that severing the invalid
language from this Plan would adversely affect the purpose or effect of this Plan, the right of
redemption set forth in Section 23 hereof shall be reinstated (with prompt notice to the
Rights Agent) and shall not expire until the close of business on the tenth Business Day following
the date of such determination by the Board. Without limiting the foregoing, if any provision
requiring a specific group of Directors of the Company to act is held by any court of competent
jurisdiction or other authority to be invalid, void or unenforceable, such determination shall then
be made by the Board in accordance with applicable law and the Company’s Certificate of
Incorporation and Bylaws.

Section 33. Governing Law. This Plan and each Right Certificate issued hereunder shall be
deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be
governed by and construed in accordance with the laws of such State applicable to contracts to be
made and performed entirely within such State.

Section 34. Counterparts. This Plan 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. A signature to this Plan transmitted
electronically shall have the same authority, effect and enforceability as an original signature.

Section 35. Descriptive Headings. Descriptive headings of the several sections of this
Plan are inserted for convenience only and shall not control or affect the meaning or construction
of any of the provisions hereof.

Section 36. Force Majeure. Notwithstanding anything to the contrary contained herein, the
Rights Agent shall not be liable for any delays or failures in performance resulting from acts
beyond its reasonable control including, without limitation, acts of
God, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer facilities, or loss
of data due to power failures or mechanical difficulties with information storage or retrieval
systems, labor difficulties, war, or civil unrest.

-33-

 

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

	 	 	 	 	 
	INTERSTATE HOTELS & RESORTS, INC.	 	 
	 
	 	 	 	 
	By:
	 	 /s/ Bruce A. Riggins	 	 
	 

	 	 

Name: Bruce A. Riggins
	 	 
	 

	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 
	COMPUTERSHARE TRUST COMPANY, N.A.	 	 
	 
	 	 	 	 
	 

	 	as Rights Agent	 	 
	 
	 	 	 	 
	By:
	 	 /s/ Dennis Moccia	 	 
	 

	 	 

Name: Dennis Moccia
	 	 
	 

	 	Title: Manager, Contract Administration	 	 

 

 

EXHIBIT A

FORM OF RIGHT CERTIFICATE

Certificate No. R-                    

NOT EXERCISABLE AFTER SEPTEMBER 24, 2012 OR SUCH EARLIER DATE AS
PROVIDED BY THE PLAN OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS.
THE RIGHTS ARE SUBJECT TO REDEMPTION AT $0.001 PER RIGHT AND TO
EXCHANGE ON THE TERMS SET FORTH IN THE PLAN. UNDER CERTAIN
CIRCUMSTANCES, AS SET FORTH IN THE PLAN, RIGHTS OWNED BY OR
TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING PERSON (AS
DEFINED IN THE PLAN) AND CERTAIN TRANSFEREES THEREOF WILL BECOME
NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.

RIGHT CERTIFICATE

INTERSTATE HOTELS & RESORTS, INC.

     This certifies that                                          or registered assigns, is the registered
owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to
the terms, provisions and conditions of the Tax Benefit Preservation Plan, dated as of September
24, 2009, as the same may be amended from time to time (the “Plan”), between Interstate Hotels &
Resorts, Inc., a Delaware corporation (the “Company”), and Computershare Trust Company, N.A., as
Rights Agent (the “Rights Agent”), to purchase from the Company at any time after the Distribution
Date (as such term is defined in the Plan) and prior to 5:00 P.M., Eastern time, on September 24,
2012 at the office or agency of the Rights Agent designated for such purpose, or of its successor
as Rights Agent, one one-hundredth of a fully paid non-assessable share of Series A Junior
Participating Preferred Stock, par value $0.01 per share (the “Preferred Stock”), of the Company at
a purchase price of $3.25 per one one-hundredth of a share of Preferred Stock (the “Purchase
Price”), upon presentation and surrender of this Right Certificate with the Form of Election to
Purchase duly executed. The number of Rights evidenced by this Rights Certificate (and the number
of one one-hundredths of a share of Preferred Stock which may be purchased upon exercise hereof)
set forth above, and the Purchase Price set forth above, are the number and Purchase Price as of
[___, 20___], based on the Preferred Stock as constituted at such date. As provided in
the Plan, the Purchase Price, the number of one one-hundredths of a share of Preferred Stock (or
other securities or property) which may be purchased upon the exercise of the Rights and the number
of 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 Plan,
which terms, provisions and conditions are hereby incorporated herein by reference and made a part
hereof and to which Plan reference is hereby made for a full description of the rights,

A-1

 

limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the
Company and the holders of the Right Certificates. Copies of the Plan are on file at the principal
executive offices of the Company. The Company will mail to the holder of this Right Certificate a
copy of the Plan without charge after receipt of a written request therefor.

     This Right Certificate, with or without other Right Certificates, upon surrender at the office
or agency 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 shares of Preferred Stock as the Rights evidenced by the Right
Certificate or Right Certificates surrendered shall have entitled such holder to purchase. If this
Right Certificate shall be exercised in part, the holder shall be entitled to receive upon
surrender hereof another Right Certificate or Right Certificates for the number of whole Rights not
exercised.

     Subject to the provisions of the Plan, the Rights evidenced by this Certificate (i) may be
redeemed by the Company at a redemption price of $0.001 per Right or (ii) may be exchanged in whole
or in part for shares of the Company’s Common Stock, par value $0.01 per share, or shares of
Preferred Stock.

     No fractional shares of Common Stock or Preferred Stock will be issued upon the exercise or
exchange of any Right or Rights evidenced hereby (other than fractions of Preferred Stock which are
integral multiples of one one-hundredths of a share of Preferred Stock, 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 Plan.

     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 the Preferred Stock or of any other securities of the
Company which may at any time be issuable on the exercise or exchange hereof, nor shall anything
contained in the Plan 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 Plan) or to receive dividends or subscription rights, or otherwise, until the
Right or Rights evidenced by this Right Certificate shall have been exercised or exchanged as
provided in the Plan.

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

A-2

 

     WITNESS the facsimile signature of the proper officers of the Company and its corporate seal.
Dated as of ___, 20___.

	 
	INTERSTATE HOTELS & RESORTS, INC.

By:

Name:

Title:

ATTEST:

Name:

Title:

Countersigned:

	 	 	 	 	 
	COMPUTERSHARE TRUST COMPANY, N.A., as Rights Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

FORM OF REVERSE SIDE OF RIGHT CERTIFICATE

FORM OF ASSIGNMENT

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

FOR VALUE RECEIVED

                                                            

hereby sells, assigns and

transfers unto

(Please print name and address of transferee)

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

Dated:

A-3

 

                                                            

Signature

Signature Guaranteed:

Signatures must be guaranteed by a bank, trust company, broker, dealer or other eligible
institution participating in a recognized signature guarantee medallion program.

(To be completed)

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

                                                            

Signature

FORM OF ELECTION TO PURCHASE

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

TO INTERSTATE RESORTS & HOTELS, INC.:

     The
undersigned hereby irrevocably elects to exercise                      Rights represented by this
Right Certificate to purchase the shares of Preferred Stock (or other securities or property)
issuable upon the exercise of such Rights and requests that certificates representing such shares
of Preferred Stock (or such other securities) be issued in the name of:

(Please print name and address)

 

 
 

 
 

 
 

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

A-4

 

Please insert social security or other identifying number

(Please print name and address)

 

 
 

 
 

Dated:

                                                            

Signature

(Signature must conform to holder specified on Right Certificate)

Signature Guaranteed:

     Signature must be guaranteed by a bank, trust company, broker, dealer or other eligible
institution participating in a recognized signature guarantee medallion program.

(To be completed)

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

                                                            

Signature

NOTICE

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

     In the event the certification set forth above in the Form of Assignment or the Form of
Election to Purchase, as the case may be, is not completed, such Assignment or Election to Purchase
will not be honored.

A-5

 

EXHIBIT B

UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE PLAN, RIGHTS OWNED
BY OR TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING
PERSON (AS DEFINED IN THE PLAN) AND CERTAIN TRANSFEREES THEREOF WILL
BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.

SUMMARY OF RIGHTS TO PURCHASE

SHARES OF PREFERRED STOCK OF

INTERSTATE HOTELS & RESORTS, INC.

     On September 24, 2009, the Board of Directors of Interstate Hotels & Resorts, Inc. (the
“Company”) declared a dividend of one preferred share purchase right (a “Right”) for each
outstanding share of Common Stock, par value $0.01 per share (the “Common Stock”). The dividend is
payable on October 8, 2009 (the “Record Date”) to the stockholders of record on that date. Each
Right entitles the registered holder to purchase from the Company one one-hundredth of a share of
Series A Junior Participating Preferred Stock, par value $0.01 per share, of the Company (the
“Preferred Stock”) at a price of $3.25 per one one-hundredth of a share of Preferred Stock (the
“Purchase Price”), subject to adjustment. The description and terms of the Rights are set forth in
a Tax Benefit Preservation Plan, dated as of September 24, 2009, as the same may be amended from
time to time (the “Plan”), between the Company and Computershare Trust Company, N.A., as Rights
Agent (the “Rights Agent”).

     The Company has generated net operating loss carryovers and federal tax credit carryovers for
United States federal income tax purposes (“NOLs”), which will potentially provide valuable tax
benefits to the Company. The ability to utilize the NOLs to offset taxable income may be limited
or impaired by a future “ownership change” within the meaning of Section 382 (as defined below).
The Plan is intended to help protect the Company’s tax net operating loss carryforwards from such
impairment. The Rights may cause substantial dilution to a person or group that attempts to
acquire the Company on terms not approved by the Board of Directors. Additionally, the Board of
Directors may redeem the Rights, as discussed more fully below. The Plan is intended to act as a
deterrent to any person or group from becoming or obtaining the right to become a “5-percent
shareholder” (as such term is used in Section 382 of the Code), and the Treasury Regulations
promulgated thereunder) or, in certain cases, increasing such person’s or group’s ownership of
Common Stock beyond a specified threshold, without the approval of the Board of Directors.

     Until the earlier to occur of (i) 10 business days following a public announcement that a
person or group of affiliated or associated persons (with certain exceptions, an “Acquiring
Person”) has acquired beneficial ownership of 4.99% or more of the shares of Common Stock then
outstanding or (ii) 10 business days (or, unless the Distribution Date shall have previously
occurred, such later date as may be determined by action of the Board of Directors) after the date
of commencement by any person or group of, or of the first public announcement of the intention of
such person or group to commence, a tender offer or exchange offer, the consummation of which would
result in the beneficial

B-1

 

ownership
by such person or group of 4.99% or more of the then-outstanding shares of Common Stock (the earlier of such dates being called the
“Distribution Date”), the Rights will be evidenced, with respect to any of the Common Stock
certificates (or book entry shares in respect of the Common Stock) outstanding as of the Record
Date, by such Common Stock certificate (or such book entry shares) together with this Summary of
Rights.

     The Plan provides that, until the Distribution Date (or earlier expiration of the Rights), the
Rights will be transferred with and only with the Common Stock. Until the Distribution Date (or
earlier expiration of the Rights), new Common Stock certificates (or book entry shares in respect
of the Common Stock) issued after the Record Date upon transfer or new issuances of Common Stock,
as applicable, will contain a notation incorporating the Plan by reference and, with respect to any
uncertificated book entry shares issued after the Record Date, proper notice will be provided that
incorporates the Plan by reference. Until the Distribution Date (or earlier redemption or
expiration of the Rights), the surrender for transfer of any certificates for shares of Common
Stock (or book entry shares of Common Stock) outstanding as of the Record Date, even without a
notation incorporating the Plan by reference (or such notice, in the case of Book Entry shares),
notice or a copy of this Summary of Rights, will also constitute the transfer of the Rights
associated with the shares of Common Stock represented by such certificate or book entry shares, as
the case may be. As soon as practicable following the Distribution Date, separate certificates
evidencing the Rights (“Right Certificates”) will be mailed to (or credited to the account of)
holders of record of the Common Stock as of the close of business on the Distribution Date and such
separate Right Certificates alone will evidence the Rights.

     The Rights are not exercisable until the Distribution Date. The Rights will expire upon the
earliest of the close of business on September 24, 2012 (unless that date is advanced or extended),
the time at which the Rights are redeemed or exchanged under the Plan, the final adjournment of the
Company’s 2010 annual meeting of stockholders if stockholder approval of the Plan has not been
received prior to that time, the repeal of Section 382 of the Code or any successor statute if the
Board determines that the Plan is no longer necessary for the preservation of the Company’s tax
benefits, or the beginning of a taxable year of the Company to which the Board determines that no
tax benefits may be carried forward.

     The Purchase Price payable, and the number of shares of Preferred Stock or other securities or
property issuable, upon exercise of the Rights are subject to adjustment from time to time to
prevent dilution (i) in the event of a stock dividend on, or a subdivision, combination or
reclassification of, the Preferred Stock, (ii) upon the grant to holders of the Preferred Stock of
certain rights or warrants to subscribe for or purchase Preferred Stock at a price, or securities
convertible into Preferred Stock with a conversion price, less than the then-current market price
of the Preferred Stock or (iii) upon the distribution to holders of the Preferred Stock of
evidences of indebtedness or assets (excluding regular periodic cash dividends or dividends payable
in Preferred Stock) or of subscription rights or warrants (other than those referred to above).

     The Rights are also subject to adjustment in the event of a stock dividend on the Common Stock
payable in shares of Common Stock, or subdivisions, consolidations or combinations of the Common
Stock occurring, in any such case, prior to the Distribution Date.

B-2

 

     Preferred Shares purchasable upon exercise of the Rights will not be redeemable. Each
Preferred Share will be entitled to a minimum preferential quarterly dividend payment of $1 per
share but will be entitled to an aggregate dividend of 100 times the dividend declared per Common
Share. In the event of liquidation, the holders of the Preferred Shares will be entitled to a
minimum preferential liquidation payment of $100 per share but will be entitled to an aggregate
payment of 100 times the payment made per Common Share. Each Preferred Share will have 100 votes,
voting together with the Common Shares. Finally, in the event of any merger, consolidation or
other transaction in which Common Shares are exchanged, each Preferred Share will be entitled to
receive 100 times the amount received per Common Share. These rights are protected by customary
antidilution provisions.

     Because of the nature of the Preferred Stock’s dividend, liquidation and voting rights, the
value of the one one-hundredth interest in a share of Preferred Stock purchasable upon exercise of
each Right should approximate the value of one share of Common Stock.

     In the event that any person or group of affiliated or associated persons becomes an Acquiring
Person, each holder of a Right, other than Rights beneficially owned by the Acquiring Person (which
will thereupon become void), will thereafter have the right to receive upon exercise of a Right and
payment of the Purchase Price, that number of shares of Common Stock having a market value of two
times the Purchase Price.

     At any time after any person or group becomes an Acquiring Person and prior to the acquisition
by such person or group of 50% or more of the voting power of the outstanding shares of Common
Stock, the Board of Directors may exchange the Rights (other than Rights owned by such person or
group which will have become void), in whole or in part, for shares of Common Stock or Preferred
Stock (or a series of the Company’s preferred stock having similar rights, preferences and
privileges), at an exchange ratio of one share of Common Stock, or a fractional share of Preferred
Stock (or of a share of a similar class or series of the Company’s preferred stock having similar
rights, preferences and privileges) of equivalent value, per Right (subject to adjustment).

     With certain exceptions, no adjustment in the Purchase Price will be required until cumulative
adjustments require an adjustment of at least 1% in such Purchase Price. No fractional shares of
Common Stock or Preferred Stock will be issued (other than fractions which are integral multiples
of one one-hundredth of a share of Preferred Stock, which may, at the election of the Company, be
evidenced by depositary receipts), and in lieu thereof an adjustment in cash will be made based on
the market price of the Preferred Stock on the last trading day prior to the date of exercise.

     At any time prior to the time an Acquiring Person becomes such, the Board of Directors may
redeem the Rights in whole, but not in part, at a price of $0.001 per Right, appropriately adjusted
to reflect any stock split, stock dividend or similar transaction occurring after the date of
adoption of the Plan (the “Redemption Price”). The redemption of the Rights may be made effective
at such time, on such basis and with such conditions as the Board of Directors in its sole
discretion may establish. Immediately upon any redemption of the Rights, the right to exercise the
Rights will terminate and the only right of the holders of Rights will be to receive the Redemption
Price.

B-3

 

     For so long as the Rights are then redeemable, the Company may, except with respect to the
Redemption Price, amend the Plan in any manner. After the Rights are no longer redeemable, the
Company may, except with respect to the Redemption Price, amend the Plan in any manner that does
not adversely affect the interests of holders of the Rights.

     Until a Right is exercised or exchanged, the holder thereof, as such, will have no rights as a
stockholder of the Company, including, without limitation, the right to vote or to receive
dividends.

     A copy of the Plan has been filed with the Securities and Exchange Commission as an Exhibit to
the Company’s Current Report on Form 8-K dated September 24, 2009. A copy of the Plan 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 Plan, as the same may be amended from
time to time, which is hereby incorporated herein by reference.

B-4<PAGE>

EXHIBIT 10.1

                                VOTING AGREEMENT

         VOTING AGREEMENT, dated as of September 24, 2009 (this "AGREEMENT"), by
and among Ivivi Technologies, Inc., a New Jersey corporation (the "COMPANY"),
Ivivi Technologies, LLC, a Delaware limited liability company (the "BUYER"), and
the other parties listed on the signature pages hereto (each, a "STOCKHOLDER"
and collectively, the "STOCKHOLDERS"). Capitalized terms used but not otherwise
defined herein shall have the respective meanings ascribed to such terms in the
Purchase Agreement (as defined below).

         WHEREAS, as of the date hereof, each of David Saloff, Arthur Pilla,
Ph.D., Berish Strauch, M.D., Sean Hagberg, Ph.D. and Ed Hammel (each, a
"CONTINGENT STOCKHOLDER" and collectively, the "CONTINGENT STOCKHOLDERS"), among
others, is a party to that certain Amended and Restated Voting Agreement, dated
as of August 30, 2006, among the Company and the shareholders listed on the
signature pages thereto (the "EXISTING VOTING AGREEMENT"), pursuant to which
Andre' A. DiMino has the right to exercise or direct the vote, until October 24,
2009 (in which date the Existing Voting Agreement shall expire with respect to
the Contingent Stockholders), of all of the shares of Company Common Stock owned
by each Contingent Stockholder, and each of the Contingent Stockholders agrees
to enter into this Agreement as of the date hereof (and for purposes of SECTION
1.01 and SECTION 1.02 of this Agreement only after the expiration of the
Existing Voting Agreement if the Company Meeting has not occur as of such date);

         WHEREAS, as of the date hereof, subject to the Existing Voting
Agreement, each Stockholder (i) is the record or beneficial holder of, and has
the sole right to vote and dispose of, the number of issued and outstanding
shares of Company Common Stock and (ii) has the right to exercise or direct the
vote, whether by proxy or otherwise, of the number of shares of Company Common
Stock, in each case, as set forth opposite such Stockholder's name on ANNEX I
(all Company Common Stock owned of record or beneficially by any Stockholder as
of the date hereof as set forth on ANNEX I, together with any Company Common
Stock that are hereafter issued to or otherwise acquired by such Stockholder
prior to the termination of this Agreement (including pursuant to any exercise
of stock options or exercise or conversion of other securities, or pursuant to a
stock dividend, distribution, split-up, recapitalization, combination or similar
transaction), and any Company Common Stock with respect to which any Stockholder
has as of the date hereof, or acquires prior to the termination hereof, the
right to exercise or direct the vote, whether by proxy or otherwise, being
hereinafter referred to as the "SUBJECT SHARES");

         WHEREAS, concurrently with the execution and delivery of this
Agreement, the Company, the Buyer and Ajax Capital LLC, a Delaware limited
liability company, are entering into that certain Asset Purchase Agreement,
dated as of the date hereof (the "PURCHASE AGREEMENT"), pursuant to which, among
other things, the Buyer has agreed to purchase substantially all of the assets,
and to assume certain liabilities, of the Company (the "TRANSACTION"); and

         WHEREAS, as a condition to its willingness to enter into the Purchase
Agreement, the Buyer required that each Stockholder, and in order to induce the
Buyer to enter into the Purchase Agreement, each Stockholder has agreed to,
enter into this Agreement.

<PAGE>

         NOW, THEREFORE, in consideration of the foregoing and the respective
representations, warranties, covenants and agreements set forth below, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and intending to be legally bound hereby, the parties
hereto agree as follows:

                                   ARTICLE 1
                                AGREEMENT TO VOTE

         Section 1.01. VOTING OF SUBJECT SHARES. Each Stockholder (and with
respect to each Contingent Stockholder, only upon the expiration of the Existing
Voting Agreement) severally as to itself only agrees that, until the date this
Agreement is terminated in accordance with SECTION 4.03, at any Company Meeting,
such Stockholder shall, or shall cause the holder of record on any applicable
record date to, vote (or cause to be voted) its, his or her Subject Shares:

              (i) in favor of the approval of the Purchase Agreement, the
Transaction and the other transactions contemplated thereby;

              (ii) against the approval of any matter or proposal submitted to
the shareholders of the Company for approval, if approval of such matter or
proposal would result in a breach in any material respect of any covenant,
representation or warranty or any other obligation of the Company under the
Purchase Agreement; and

              (iii) against (A) any merger or other business combination
involving the Company, (B) a sale or transfer of a material amount of assets or
capital stock of the Company (other than the Transaction) or (C) any action that
is intended, or could reasonably be expected, to materially impede, interfere
with, delay, postpone or adversely affect the Transaction and the other
transactions contemplated by the Purchase Agreement.

         Section 1.02. IRREVOCABLE PROXIES. In order to secure the performance
of each Stockholder's obligations under this Agreement, by entering into this
Agreement and solely with respect to the matters described in SECTION 1.01, each
Stockholder hereby irrevocably grants (and with respect to each Contingent
Stockholder, each such Contingent Stockholder commits to irrevocably grant, upon
the expiration of the Existing Voting Agreement) a proxy appointing Mr. Steven
M. Gluckstern ("SMG") as such Stockholder's attorney-in-fact and proxy, with
full power of substitution, for and in its, his or her name, place and stead, to
vote, express consent or dissent, or otherwise to utilize such voting power in
the manner contemplated by and in accordance with SECTION 1.01, in SMG's
discretion, with respect to such Stockholder's Subject Shares, in each case,
until the termination of this Agreement in accordance with SECTION 4.03. Each
Stockholder hereby represents that any proxies heretofore given in respect of
the Subject Shares (other than proxies pursuant to the Existing Voting
Agreement) are not irrevocable, and that any such proxies are hereby revoked.
Each Stockholder severally (and not jointly) hereby affirms that the irrevocable
proxy set forth in this SECTION 1.02 is given (and with respect to each
Contingent Stockholder, is committed to be given) in connection with the
execution of the Purchase Agreement and affirms that such irrevocable proxy is
coupled with an interest and may under no circumstances be revoked, except that
such irrevocable proxy shall be revoked automatically, without any notice or
other action by any Person, upon the termination of this Agreement in accordance
with SECTION 4.03. Each Stockholder severally (and not jointly) hereby ratifies

                                       2
<PAGE>

and confirms all that such irrevocable proxy may lawfully do or cause to be done
by virtue hereof. THE PROXY AND POWER OF ATTORNEY SET FORTH IN THIS SECTION 1.02
IS IRREVOCABLE AND COUPLED WITH AN INTEREST. Each Stockholder (and with respect
to the each Contingent Stockholder, upon the expiration of the Existing Voting
Agreement) shall execute and deliver to SMG any proxy cards that such
Stockholder receives to vote in favor of the approval of the Purchase Agreement,
the Transaction or any of the transactions contemplated thereby.

         Section 1.03. ADDITIONAL COVENANT BY MR. ANDRE' A. DIMINO. For
avoidance of doubt, Mr. DiMino hereby acknowledges and agrees that (i) his
obligations under this Agreement with respect to his Subject Shares (including,
without limitation, pursuant to, and under, SECTION 1.01 and SECTION 1.02) shall
also apply to all of the shares of Company Common Stock with respect to which
Mr. DiMino has the right to exercise or direct the vote pursuant to the Existing
Voting Agreement and (ii) during the term of the Existing Voting Agreement, he
shall not agree to terminate his right to exercise or direct the vote of the
shares of Company Common Stock owned by any Contingent Stockholder (subject to
the Existing Voting Agreement as of the date hereof) pursuant to the Existing
Voting Agreement.

         Section 1.04. COMPANY BREACH. For the avoidance of doubt, each
Stockholder agrees that, during the term of this Agreement the obligations of
such Stockholder specified in SECTION 1.01 shall not be affected by (i) the
Board's or the Special Committee's withdrawal or modification of its
Recommendation or (ii) any breach by the Company of any of its representations,
warranties, agreements or covenants set forth in the Purchase Agreement.

                                   ARTICLE 2
               REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDERS

         Each Stockholder hereby represents and warrants as to itself, himself
or herself, severally and not jointly, to the Company and the Buyer as follows:

         Section 2.01. AUTHORIZATION; BINDING AGREEMENT. The execution, delivery
and performance by such Stockholder of this Agreement and the consummation of
the transactions contemplated hereby are within its, his or her legal capacity
and requisite powers, and if this Agreement is being executed in a
representative or fiduciary capacity, the Person signing this Agreement has full
power and authority to execute, deliver and perform this Agreement. Assuming the
due authorization, execution and delivery of this Agreement by the Company and
the Buyer, this Agreement constitutes a legal, valid and binding agreement of
such Stockholder enforceable against such Stockholder in accordance with its
terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium and other Laws of general applicability relating to
or affecting creditors' rights and by general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at
law).

                                       3
<PAGE>

         Section 2.02. NON-CONTRAVENTION. Other than (a) the filing by such
Stockholder of any reports with the Securities and Exchange Commission required
by Section 13(d) or 16(a) of the Exchange Act, or (b) any consent, approval
filing or notification which has been obtained as of the date hereof, the
execution and delivery of this Agreement by such Stockholder does not, and the
performance of the terms of this Agreement by such Stockholder (or SGM's voting
of such Stockholder's Subject Shares pursuant to the proxy contemplated by
SECTION 1.02) will not (1) require such Stockholder to obtain the consent or
approval of, or make any filing with or notification to, any Governmental
Entity, (2) require the consent or approval of any other person pursuant to any
agreement, obligation or instrument binding on such Stockholder or its
properties and assets, or (3) conflict with or violate any organizational
document, agreement or Law applicable to such Stockholder's Subject Shares or
such Stockholder or pursuant to which any such Stockholder is a party, including
any voting agreement, stockholders agreement, irrevocable proxy or voting trust.

         Section 2.03. OWNERSHIP OF SUBJECT SHARES; TOTAL SHARES. As of the date
hereof, such Stockholder is the record or beneficial owner (as defined in Rule
13d-3 under the Exchange Act) of its, his or her Subject Shares. As of the date
hereof, such Stockholder does not own, beneficially or otherwise, any shares of
voting stock of the Company other than as set forth opposite such Stockholder's
name in ANNEX I. Except with respect to the grant of purchase rights by certain
shareholders of the Company to SMG pursuant to an agreement dated November 8,
2005 (the "SMG PURCHASE AGREEMENT"), there are no outstanding options or other
rights to acquire from such Stockholder, or obligations of such Stockholder to
sell or to dispose of, any shares of voting stock of the Company.

         Section 2.04. VOTING POWER. Except as set forth in the Existing Voting
Agreement, each Stockholder has full voting power with respect to its, his or
her Subject Shares, and full power to issue instructions with respect to the
matters set forth herein, and full power to agree to all of the matters set
forth in this Agreement, in each case with respect to all of its, his or her
Subject Shares.

         Section 2.05. RELIANCE BY THE COMPANY AND THE BUYER. Such Stockholder
understands and acknowledges that each of the Company and the Buyer are entering
into the Purchase Agreement and the transactions contemplated therein in
reliance upon such Stockholder's execution and delivery of this Agreement.

                                   ARTICLE 3
                    ADDITIONAL COVENANTS OF THE STOCKHOLDERS

         Section 3.01. TRANSFERS. Except as provided hereunder, from the date
hereof until this Agreement is terminated in accordance with SECTION
4.03, no Stockholder shall, directly or indirectly:

              (i) except pursuant to the SMG Purchase Agreement, sell, transfer,
pledge, encumber, assign or otherwise dispose of, or enter into any contract,
option or other arrangement or understanding with respect to the sale, transfer,
pledge, encumbrance, assignment or other disposition of, such Stockholder's
Subject Shares or any interest contained therein;

                                       4
<PAGE>

              (ii) grant any proxies or powers of attorney or enter into a
voting agreement or other arrangement with respect to such Stockholder's Subject
Shares, other than this Agreement; nor

              (iii) enter into, or deposit such Stockholder's Subject Shares
into, a voting trust or take any other action which would, or could reasonably
be expected to, result in a diminution of the voting power represented by any of
such Stockholder's Subject Shares; nor

              (iv) commit or agree to take any of the foregoing actions.

         Section 3.02. STOP ORDER. Each Stockholder agrees that it shall
authorize and request the Company to notify its transfer agent that there is a
stop transfer order with respect to all of the Subject Shares and that this
Agreement place limits on the voting of the Subject Shares.

         Section 3.03. DOCUMENTATION AND INFORMATION. Each Stockholder (i)
consents to and authorizes the publication and disclosure by the Company and the
Buyer and their affiliates of its, his or her identity and holding of Subject
Shares and the nature of its, his or her commitments and obligations under this
Agreement in any announcement or disclosure required by the SEC or other
Governmental Entity, the Purchase Agreement, or any other disclosure document in
connection with the transactions contemplated by the Purchase Agreement or this
Agreement, and (ii) agrees promptly to give to the Company and the Buyer any
information the Company or the Buyer may reasonably require for the preparation
of any such disclosure documents; PROVIDED that, to the extent practicable, each
such Stockholder shall have a reasonable opportunity to review and comment on
any such announcement or disclosure prior to its publication, filing or
disclosure. Each Stockholder agrees to promptly notify the Company and the Buyer
of any required corrections with respect to any written information supplied by
it specifically for use in any such disclosure document, if and to the extent
that any shall have become false or misleading in any material respect.

         Section 3.04. ADDITIONAL SHARESSection 3.05. . In the event (i) of any
stock dividend, stock split, recapitalization, reclassification, combination or
exchange of shares of capital stock of the Company on, of or affecting any
Stockholder's Subject Shares or (ii) any Stockholder becomes the beneficial
owner of any additional shares of the Company voting stock or other securities
entitling the holder thereof to vote or give consent with respect to the matters
set forth in SECTION 1.01 hereof, then the terms of this Agreement shall apply
to the shares of capital stock or other securities of the Company held by such
Stockholder immediately following the effectiveness of the events described in
clause (i) or such Stockholder becoming the beneficial owner thereof, as
described in clause (ii), as though they were such Stockholder's Subject Shares
hereunder. Each Stockholder hereby agrees, while this Agreement is in effect, to
notify the Company and the Buyer of the number of any new shares of the Company
voting stock acquired by such Stockholder, if any, after the date hereof. No
Stockholder executing this Agreement who is or becomes during the term hereof a
director or officer of the Company makes (or shall be deemed to have made) any
agreement or understanding herein in his or her capacity as such director or
officer. Without limiting the generality of the foregoing, each Stockholder
signs solely in his, her or its capacity as the record and/or beneficial owner,
as applicable, of, or holder of voting rights with respect to, the Subject
Shares and nothing herein shall limit or affect any actions taken by such
Stockholder (or a designee of such Stockholder) in his or her capacity as an
officer or director of the Company in exercising his or her or the Company's or
the Board's rights in connection with the Purchase Agreement or otherwise.

                                       5
<PAGE>

                                    ARTICLE 4
                                  MISCELLANEOUS

         Section 4.01. NOTICES. All notices and other communications hereunder
shall be in writing and shall be deemed to have been duly given when delivered
in person, by facsimile, receipt confirmed, or on the next Business Day when
sent by overnight courier or on the second succeeding Business Day when sent by
registered or certified mail (postage prepaid, return receipt requested) to the
respective parties at the following addresses (or at such other address for a
party as shall be specified by like notice):

         if to the Company to:

                Ivivi Technologies, Inc.
                135 Chestnut Ridge Road
                Montvale, NJ 07645
                Attention: Ed Hammel
                Telephone: (201) 476-9600
                Facsimile: (201) 476-9601

         with a copy to:

                Lowenstein Sandler PC
                65 Livingston Avenue
                Roseland, New Jersey 07068
                Attention: Steven M. Skolnick, Esq.
                Telephone: (937) 597-2476
                Facsimile: (973) 597-2477

         if to the Buyer to:

                Ivivi Technologies, LLC
                c/o Ajax Capital LLC
                460 Park Avenue, Suite 2101
                New York, NY  10022
                Attention: Steven M. Gluckstein
                           or
                           Kathryn Clubb
                Telephone: (212) 937-8701
                           (212) 937-8704
                Facsimile: (212) 937-8702

                                       6
<PAGE>

         with a copy to:

                Paul, Weiss, Rifkind, Wharton & Garrison, LLP
                1285 Avenue of the Americas
                New York, New York 10019-6064
                Attention: Jeffrey D. Marell, Esq.
                           Marilyn Sobel, Esq.
                Telephone: (212) 373-3000
                Facsimile: (212) 757-3990

         if to any Stockholder, to the address specified on ANNEX I.

         Section 4.02. FURTHER ASSURANCES. Each Stockholder shall, from time to
time, execute and deliver, or cause to be executed and delivered, such
additional or further transfers, assignments, endorsements and other instruments
as the Company or the Buyer may reasonably request to carry out the transactions
contemplated by this Agreement.

         Section 4.03. TERMINATION.

              (i) This Agreement shall terminate automatically, without any
notice or other action by any Person, upon the earlier of (i) the termination of
the Purchase Agreement in accordance with its terms and (ii) the Closing.

              (ii) In the event of the termination of this Agreement pursuant to
this SECTION 4.03, this Agreement shall become void and of no effect with no
liability on the part of any party hereto; PROVIDED, HOWEVER, that no such
termination shall relieve any party hereto from any liability for any material
breach of this Agreement occurring prior to such termination.

         Section 4.04. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The
representations and warranties contained herein and in any certificate or other
writing delivered pursuant hereto shall not survive the earlier of (i) the
termination of the Purchase Agreement in accordance with its terms and (ii) the
Closing.

         Section 4.05. AMENDMENTS AND WAIVERS.

              (i) Any provision of this Agreement may be amended or waived if
such amendment or waiver is in writing and is signed, in the case of an
amendment, by each party to this Agreement or, in the case of a waiver, by each
party against whom the waiver is to be effective and the Buyer.

              (ii) No failure or delay by any party in exercising any right,
power or privilege hereunder shall operate as a waiver thereof nor shall any
single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. The rights and
remedies herein provided shall be cumulative and not exclusive of any rights or
remedies provided by applicable Law.

                                       7
<PAGE>

         Section 4.06. EXPENSES. Except as otherwise provided herein or in the
Purchase Agreement, all costs and expenses incurred in connection with this
Agreement shall be paid by the party incurring such cost or expense.

         Section 4.07. BINDING EFFECT; INTENDED THIRD PARTY BENEFICIARY;
ASSIGNMENT.

              (i) The provisions of this Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective
successors, heirs, personal representatives, administrators, executors and
permitted assigns. No provision of this Agreement is intended to confer any
rights, benefits, remedies, obligations or liabilities hereunder upon any Person
other than the parties hereto and their successors, heirs, personal
representatives, administrators, executors and permitted assigns.

              (ii) No party may assign, delegate or otherwise transfer any of
its rights or obligations under this Agreement without the consent of each other
party hereto.

         Section 4.08. GOVERNING LAW; JURISDICTION. This Agreement is for the
benefit of and may be enforced by the Company and the Buyer and their respective
directors, officers, shareholders, affiliates, employees and agents and be
governed by and construed in accordance with New York law without regard to
conflicts of law principles. The Company, the Buyer and the Stockholders also
hereby irrevocably and unconditionally consent to submit to the exclusive
jurisdiction of the courts of the State of New York and of the United States of
America located in the State of New York for any actions, suits or proceedings
arising out of or relating to this Agreement and the transactions contemplated
hereby. The Company, the Buyer and the Stockholders also agree not to commence
any action, suit or proceeding arising out of or relating to this Agreement
except in such courts and that service of any process, summons, notice or
document by U.S. registered mail to such Person's address as set forth in
SECTION 4.01 shall be effective service of process for any action, suit or
proceeding brought against such Person in any such court. The Company, the Buyer
and the Stockholders hereby irrevocably and unconditionally waive any objection
to the laying of venue of any action, suit or proceeding arising out of or
relating to this Agreement and the transactions contemplated hereby in the
courts of the State of New York and of the United States of America located in
the State of New York, and irrevocably and unconditionally waive and agree not
to plead or claim in any such court that any action, suit or proceeding brought
in any such court has been brought in an inconvenient forum.

         Section 4.09. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

         Section 4.10. COUNTERPARTS: EFFECTIVENESS. This Agreement may be
executed in two or more consecutive counterparts (including by facsimile), each
of which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument, and shall become effective when one or
more counterparts have been signed by each of the parties and delivered (by
telecopy or otherwise) to the other parties.

                                       8
<PAGE>

         Section 4.11. ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement among the parties with respect to the subject matter of this Agreement
and supersedes all prior agreements and understandings, both oral and written,
among the parties with respect to its subject matter.

         Section 4.12. SEVERABILITY. Any term or provision of this Agreement
which is invalid or unenforceable in any jurisdiction shall, as to that
jurisdiction, be ineffective to the sole extent of such invalidity or
unenforceability without rendering invalid or unenforceable the remainder of
such term or provision or the remaining terms and provisions of this Agreement
in any jurisdiction. If any provision of this Agreement is so broad as to be
unenforceable, such provision shall be interpreted to be only so broad as is
enforceable.

         Section 4.13. SPECIFIC PERFORMANCE. The parties hereto agree that
irreparable damage would occur in the event any of the provisions of this
Agreement were not performed in accordance with their specific terms or were
otherwise breached, and that there would not be an adequate remedy at law for
money damages in such event. Accordingly, it is agreed that the parties hereto
shall be entitled to specific performance and injunctive and other equitable
relief to prevent breaches or threatened breaches of this Agreement or to
enforce specifically the performance of the terms and provisions hereof, without
the need to post bond or other security, in addition to any other remedy to
which they are entitled at law or in equity.

         Section 4.14. STOCKHOLDER OBLIGATIONS SEVERAL AND NOT JOINT. The
obligations of each Stockholder hereunder shall be several and not joint, and no
Stockholder shall be liable for any breach of the terms of this Agreement by any
other Stockholder. The failure of any Stockholder to execute and deliver this
Agreement shall in no way affect the obligations of any other Stockholder
hereunder.

         Section 4.15. INTERPRETATION. When a reference is made in this
Agreement to a Section, such reference shall be to a Section of this Agreement
unless otherwise indicated. The headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. Whenever the words "include," "includes," or
"including" are used in this Agreement, they shall be deemed to be followed by
the words "without limitation."

         Section 4.16. NO PRESUMPTION AGAINST DRAFTER. Each of the parties
hereto has jointly participated in the negotiation and drafting of this
Agreement. In the event of an ambiguity or a question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly
by each of the parties hereto and no presumptions or burdens of proof shall
arise favoring any party hereto by virtue of the authorship of any of the
provisions of this Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       9
<PAGE>

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

                                    IVIVI TECHNOLOGIES, INC.

                                    By:  /s/ Andre' DiMino
                                         ---------------------------------------
                                         Name: Andre' DiMino
                                         Title: Executive Vice President

                                    IVIVI TECHNOLOGIES, LLC

                                    By:  /s/ Steven M. Gluckstern
                                         ---------------------------------------
                                         Name: Steven M. Gluckstern
                                         Title:  Managing Member

                                    ADM TRONICS UNLIMITED, INC.

                                    By:  /s/ Andre' DiMino
                                         ---------------------------------------
                                         Name: Andre' DiMino
                                         Title: President

                                         /s/ Andre' A. DiMino
                                         ---------------------------------------
                                         Andre' A. DiMino

                                         /s/ David Saloff
                                         ---------------------------------------
                                         David Saloff

                      [Signature Page to Voting Agreement]

                                       10
<PAGE>

                                         /s/ Arthur Pilla, Ph.D.
                                         ---------------------------------------
                                         Arthur Pilla, Ph.D.

                                         /s/ Berish Strauch, M.D.
                                         ---------------------------------------
                                         Berish Strauch, M.D.

                                         /s/ Sean Hagberg, Ph.D.
                                         ---------------------------------------
                                         Sean Hagberg, Ph.D.

                                         /s/ Ed Hammel
                                         ---------------------------------------
                                         Ed Hammel

                                         KENNETH S. ABRAMOWITZ & CO.

                                    By:  /s/ Kenneth S. Abramowitz
                                         ---------------------------------------
                                         Name: Kenneth S. Abramowitz
                                         Title: President

                      [Signature Page to Voting Agreement]

                                       11
<PAGE>

<TABLE>
<S>     <C>
                                     ANNEX I
                                     -------

       STOCKHOLDER               SUBJECT SHARES                     ADDRESS
---------------------------- ---------------------- --------------------------------------------
                                                                224 Pegasus Avenue
ADM Tronics Unlimited, Inc.      3,250,000          --------------------------------------------
                                                               Northvale, NJ 07647
                                                    --------------------------------------------
---------------------------- ---------------------- --------------------------------------------
                                                                 20 DiMino Court
      Andre' A. DiMino             186,875(2)       --------------------------------------------
                                                             Woodcliff Lake, NJ 07677
                                                    --------------------------------------------
---------------------------- ---------------------- --------------------------------------------
                                                               953 Glen Haven Drive
        David Saloff               398,124(1)(2)    --------------------------------------------
                                                           Pacific Palisades, CA 90272
                                                    --------------------------------------------
---------------------------- ---------------------- --------------------------------------------
                                                                 1 Winding Ridge
     Arthur Pilla, Ph.D.           227,500(1)       --------------------------------------------
                                                                Oakland, NJ 07436
                                                    --------------------------------------------
---------------------------- ---------------------- --------------------------------------------
                                                                 5 Flagler Drive
    Berish Strauch, M.D.           132,000(1)       --------------------------------------------
                                                                 Rye, NY 10580
                                                    -------------------------------------------
---------------------------- ---------------------- -------------------------------------------
                                                              171 Armington Street
     Sean Hagberg, Ph.D.           101,563(1)(2)    -------------------------------------------
                                                               Cranston, RI 02905
                                                    -------------------------------------------

                                       12
<PAGE>

---------------------------- ---------------------- -------------------------------------------
                                                               99 Hillcrest Road
          Ed Hammel                103,563(1)(2)    -------------------------------------------
                                                              Hartsdale, NY 10530
                                                    -------------------------------------------
---------------------------- ---------------------- -------------------------------------------
                                                       369 Lexington Avenue - 17th Floor
 Kenneth S. Abramowitz & Co.        49,020(2)       -------------------------------------------
                                                               New York, NY 10017
                                                    -------------------------------------------
---------------------------- ---------------------- -------------------------------------------
           TOTAL:                4,448,645
</TABLE>

         (1) Represents shares of Company Common Stock as to which Mr. DiMinio
         has the right, until October 24, 2009, to exercise or direct the vote
         by proxy pursuant to the Existing Voting Agreement. Upon expiration or
         termination of the Existing Voting Agreement, each such Contingent
         Stockholder shall become bound by SECTION 1.01 and SECTION 1.02 of this
         Agreement with respect to such number of shares of Company Common Stock
         as set forth herein opposite his name (subject to adjustments as
         contemplated by this Agreement).

         (2) This number of shares of Company Common Stock excludes shares of
         Company Common Stock issuable upon exercise of any options or warrants
         that are exercisable within 60 days of the date hereof.

                                       13

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