Document:

Exhibit 4.1

RIGHTS AGREEMENT

  dated as of

  September 20, 2005

  between

  GENTA INCORPORATED

  and

  MELLON INVESTOR SERVICES LLC

  as Rights Agent

  TABLE OF CONTENTS

	 

		

		 

		 

		
      PAGE
	
      Section	
      1
	  	
      .	
      Definitions	
      1
	
      Section	
      2
	  	
      .	
      Issuance of Rights and Right Certificates	
      5
	
      Section	
      3
	  	
      .	
      Form of Right Certificates	
      7
	
      Section	
      4
	  	
      .	
      Registration; Transfer and Exchange of Right Certificates;	 

	
	 	 	 	Mutilated, Destroyed,
    Lost or Stolen Right Certificates  	
      8
	
      Section	
      5
	  	
      .	
      Exercise of Rights	
      9
	
      Section	
      6
	  	
      .	
      Cancellation and Destruction of Right Certificates	
      11
	
      Section	
      7
	  	
      .	
      Reservation and Availability of Capital Stock	
      11
	
      Section	
      8
	  	
      .	
      Adjustment of Purchase Price, Number and Kind of Shares or	 

	
	 	 	 	Number of Rights  	
      12
	
      Section	
      9
	  	
      .	
      Certificate of Adjusted Purchase Price or Number of Shares	 
	
      Section	
      10
	  	
      .	 Consolidation, Merger or Sale or Transfer of Assets or Earning	20
	 	 	 	Power	
      20
	
      Section	
      11
	  	
      .	 Fractional Rights and Fractional Shares	
      23
	
      Section	
      12
	  	
      .	 Rights of Action	
      24
	
      Section	
      13
	  	
      .	 Agreement of Right Holders	
      24
	
      Section	
      14
	  	
      .	
      Right Certificate Holder Not Deemed a Stockholder	
      25
	
      Section	
      15
	  	
      .	 Appointment of Rights Agent	
      25
	
      Section	
      16
	  	
      .	 Merger or Consolidation or Change of Name of Rights Agent	
      26
	
      Section	
      17
	  	
      .	 Duties of the Rights Agent	
      27
	
      Section	
      18
	  	
      .	 Change of Rights Agent	
      29
	
      Section	
      19
	  	
      .	 Redemption	
      30
	
      Section	
      20
	  	
      .	 Exchange	
      31
	
      Section	
      21
	  	
      .	 Notice of Proposed Actions	
      32
	
      Section	
      22
	  	
      .	 Notices	
      33
	
      Section	
      23
	  	
      .	 Supplements and Amendments	
      33
	
      Section	
      24
	  	
      .	 Successors	
      34
	
      Section	
      25
	  	
      .	 Determinations and Actions by the Board, etc	
      34
	
      Section	
      26
	  	
      .	 Benefits of This Agreement	
      35
	
      Section	
      27
	  	
      .	 Severability	
      35
	
      Section	
      28
	  	
      .	 Governing Law	
      35
	
      Section	
      29
	  	
      .	 Counterparts	
      35
	
      Section	
      30
	  	
      .	
      Descriptive Headings	
      35
	 	 	 	 	 
	    Exhibit
    A	–	Form of Certificate of Designation
    of Preferred Stock	 
	    Exhibit
    B	–	Summary Description of the Stockholder
    Rights Plan	 
	    Exhibit
    C	–	Form of Right Certificate	 

i

  

  RIGHTS AGREEMENT

       AGREEMENT dated
  as of September 20, 2005, between Genta Incorporated, a Delaware corporation
  (the “Company”), and Mellon Investor
Services LLC, a New Jersey limited liability company, as Rights Agent (the “Rights Agent”).

  W I T N E S S E T H

       WHEREAS, on
  September 15, 2005, the Board of Directors of the Company authorized and declared
  a dividend of one preferred stock purchase right (a “Right”)
  for each share of Common Stock (as defined below) outstanding at the close
  of business (as defined below) on September 27, 2005 (the “Record
Date”) and authorized the issuance, upon the
terms and subject to the conditions herein, of one Right (subject to adjustment)
in respect of each share of Common Stock issued after the Record Date, each Right
representing the right to purchase, upon the terms and subject to the conditions
herein, one one-hundredth (subject to adjustment) of a share of Preferred Stock
(as defined below);

       NOW, THEREFORE, the parties hereto agree as follows:

       Section 1. Definitions. (a) The following terms, as used herein, have the following meanings:

       “Acquiring Person” means
  any Person who, together with all Affiliates and Associates of such Person,
  is the Beneficial Owner of the Specified Percentage of shares of outstanding
Common Stock; provided that “Acquiring Person” shall not include:

        (i) an Exempt Person;

        (ii) any Person that the Board determines in good faith became the Beneficial Owner of the Specified Percentage of shares of outstanding Common Stock inadvertently (including, without limitation,
    because such Person was unaware that it Beneficially Owned the Specified Percentage of shares of outstanding Common Stock, or 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 Agreement) and without any intention of changing or influencing control of the Company, unless such Person fails to divest itself, as soon as practicable (as determined in good faith by the
    Board), of Beneficial Ownership of a sufficient number of shares of Common Stock so that such Person would own less than the Specified Percentage of shares of outstanding Common Stock; and

        (iii) any Person that, as the result of an acquisition of shares of Common Stock by the Company that, by reducing the number of shares of Common Stock outstanding, increases the proportionate number
    of shares of Common Stock Beneficially Owned by such Person to the Specified Percentage of shares of Common Stock then outstanding; provided, however,
    that if such Person shall thereafter become the Beneficial Owner of any additional
    shares of Common Stock (other than pursuant to a dividend or distribution
    paid or made by the Company or pursuant to a split or subdivision of the
    outstanding Common Stock), then such Person shall be deemed to be an “Acquiring Person” unless
    upon becoming the Beneficial Owner of such additional shares of Common Stock
    such Person does not Beneficially Own the Specified Percentage of the shares
    of Common Stock then outstanding.

       “Affiliate” has
  the meaning ascribed to such term in Rule 12b-2 under the Exchange Act as in
effect on the date hereof.

       “Associate” has
  the meaning ascribed to such term in Rule 12b-2 under the Exchange Act as in
effect on the date hereof.

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

        (i) which such Person or any of its Affiliates or Associates, directly or indirectly, beneficially owns (as determined pursuant to Rule 13d-3 under the Exchange Act as in effect on the date
    hereof);

        (ii) which such Person or any of its Affiliates or Associates, directly or indirectly, has

  
          (A) the right to acquire (whether such right is exercisable immediately or only upon the occurrence of certain events or the passage of time or both) pursuant to any agreement, arrangement or
      understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of such securities); provided that
      a Person shall not be deemed the “Beneficial Owner” of, to have “Beneficial Ownership” of or to “Beneficially Own” (1) securities tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such
      Person’s Affiliates or Associates until such tendered securities are
      accepted for purchase or exchange, (2) securities that such Person has
      a right to acquire upon the exercise of Rights at any time prior to the
      time that any Person becomes an Acquiring Person or (3) securities issuable
      upon the exercise of Rights from and after the time that any Person becomes
      an Acquiring Person if such Rights were acquired by such

  

  2

  

  
    
      Person or any of such Person’s Affiliates
      or Associates prior to the Distribution Date or pursuant to Sections 2(b),
      3(b), 8(i) or 8(p); or

          (B) the right to vote (whether such right is exercisable immediately or only upon the occurrence of certain events or the passage of time or both) pursuant to any agreement, arrangement or
      understanding (whether or not in writing); provided that a Person
      shall not be deemed the “Beneficial Owner” of, to have “Beneficial Ownership” of or to
“Beneficially Own” any security under this clause (B) as a result of
an agreement, arrangement or other understanding to vote such security if such
agreement, arrangement or understanding (1) arises solely from a revocable proxy
or consent given in response to a public proxy or consent solicitation made pursuant
to, and in accordance with, the applicable rules and regulations under the Exchange
Act and (2) is not also then reportable by such Person on Schedule 13D under
the Exchange Act (or any comparable or successor report); or

  

        (iii) which are beneficially owned, directly or indirectly, by any other Person (or any Affiliate or Associate thereof) and with respect to which the Person or any of its Affiliates or Associates has
  any agreement, arrangement or other understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of such securities) for the purpose of acquiring, holding, voting
  (except pursuant to a revocable proxy or consent as described in clause (ii)(B) immediately above) or disposing of any such securities;

  provided, however,
  that no Person who is an officer, director or employee of an Exempt Person
  shall be deemed, solely by reason of such position, to be the “Beneficial Owner” of, to have “Beneficial Ownership” of or to “Beneficially Own” any securities that are “Beneficially Owned”,
  including, without limitation, in a fiduciary capacity, by an Exempt Person
or by any other such officer, director or employee of an Exempt Person.

       “Board” means
the Board of Directors of the Company.

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

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

3

  

  

       “Common Stock” means the Common Stock, par value $0.001 per share, of the Company, except that, when used with reference to any
Person other than the Company, “Common Stock” means the equity securities
or other equity interest having power to control or direct the management of
such Person.

       “Distribution Date” means
  the earlier of (i) the close of business on the tenth Business Day after the
  Stock Acquisition Date and (ii) the close of business on the tenth Business
  Day (or such later day as may be designated prior to the occurrence of a Section
  8(a)(ii) Event by the Board, prompt notice of which shall be provided to the
  Rights Agent by the Company) after the date of the commencement of a tender
  or exchange offer by any Person if, upon consummation thereof, such Person
would be an Acquiring Person; provided, however, that if either of such dates occurs after the date of this Agreement and on or prior to the Record Date, then the Distribution Date shall be the Record Date.

       “Exempt Person” means
  the Company or any Subsidiary of the Company (in each case including, without
  limitation, in any fiduciary capacity), any employee benefit plan of the Company
  or of any Subsidiary of the Company or any entity or trustee holding Common
  Stock for or pursuant to the terms of any such plan or for the purpose of funding
  any such plan or other benefits for employees of the Company or of any Subsidiary
of the Company.

       “Exchange Act” means
  the Securities Exchange Act of 1934, as amended, unless otherwise expressly
specified.

       “Expiration Date” means
  the earlier of (i) the Final Expiration Date and (ii) the time at which all
  Rights are redeemed as provided in Section 19 or exchanged as provided in Section
20.

       “Final Expiration Date” means
the close of business on September 15, 2015.

       “Person” means
an individual, entity or organization.

       “Preferred Stock” means the Series G Participating Cumulative Preferred Stock, par value $0.001
  per share, of the Company, having the terms set forth in the form of certificate
of designation attached hereto as Exhibit A.

       “Purchase Price” means the price (subject to adjustment as provided herein) at which a holder of a Right may purchase one
one-hundredth of a share of Preferred Stock (subject to adjustment as provided herein) upon exercise of a Right, which price shall initially be $25.00.

       “Securities Act” means
the Securities Act of 1933, as amended, unless otherwise expressly specified.

       “Specified Percentage” means
15% or more.

4

  

  

       “Stock Acquisition Date” means
  the date of the first public announcement (including the filing of a report
  on Schedule 13D under the Exchange Act (or any comparable or successor report))
  by the Company or an Acquiring Person indicating that an Acquiring Person has
become such.

       “Subsidiary” of
  any Person means any other Person of which securities or other ownership interests
  having ordinary voting power, in the absence of contingencies, to elect a majority
  of the board of directors or other Persons performing similar functions are
at the time directly or indirectly owned by such first Person.

       “Trading Day” means
  a day on which the principal national securities exchange or over-the-counter
  market on which the shares of Common Stock are listed or admitted to trading
  is open for the transaction of business or, if the shares of Common Stock are
  not listed or admitted to trading on any national securities exchange or over-the-counter
market, a Business Day.

       (b) Each of the following terms is defined in the Section set forth opposite such term:

  	
        Term	
        Section
        
	
        Adjustment Shares	
        8
      
	
        Company	
        Preamble
      
	
        equivalent preferred stock	
        8
      
	
        Exchange Ratio	
        20
      
	
        Principal Party	
        10
      
	
        Record Date	
        Recitals
      
	
        Redemption Price	
        19
      
	
        Right	
        Recitals
      
	
        Rights Agent	
        Preamble
      
	
        Right Certificate	
        3
      
	
        Section 8(a)(ii) Event	
        8(a)
    (ii)
      
	
        Section 10 Event	
        10
      
	
        Substitution Period	
        8
      

  

     Section 2. Issuance of Rights and Right Certificates. (a) As soon as practicable after the Record Date, the Company will send a
  summary of the Rights substantially in the form of Exhibit B hereto, by first-class mail, postage prepaid, to each record holder of the Common Stock as of the close of business on the Record Date. Certificates for the Common Stock issued after the
  Record Date but prior to the earlier of the Distribution Date and the Expiration Date shall have printed or written on or otherwise affixed to them the following legend:

  
    This certificate also evidences certain Rights
    as set forth in a Rights Agreement between Genta Incorporated (the “Company”)
    and Mellon Investor Services LLC, as Rights Agent, dated as of September
    20, 2005, and as amended from time to time (the “Rights Agreement”),
    the terms of

  5

  

  

  
    which are hereby incorporated herein by reference and a copy of which is on file at the principal executive offices of the Company. The Company will mail to the holder of this certificate a copy of the Rights Agreement without
    charge promptly after receipt of a written request therefor. Under certain circumstances, as set forth in the Rights Agreement, such Rights may be evidenced by separate certificates instead of by this certificate and may be redeemed or exchanged or
    may expire. As set forth in the Rights Agreement, Rights issued or transferred to, or held by, any Person who is, was or becomes an Acquiring Person or an Affiliate or Associate thereof (as such terms are defined in the
    Rights Agreement), whether currently held by or on behalf of such Person or by any subsequent holder, may be null and void.

       (b) Prior to the Distribution Date, (i) the Rights will be evidenced by the certificates for the Common Stock and not by separate Right Certificates (as hereinafter defined) and the registered holders
of the Common Stock shall be deemed to be the registered holders of the associated Rights, and (ii) the Rights will be transferable only in connection with the transfer of the underlying shares of Common Stock.

       (c) From and after the Distribution Date, the Rights will be evidenced solely by separate Right Certificates and will be transferable only in connection with the transfer of the Right Certificates
pursuant to Section 4. As soon as practicable after the Company has notified the Rights Agent in writing of the occurrence of the Distribution Date, the Company shall send or cause to be sent (and the Rights Agent will, if so requested by written
notice, and provided with a shareholder list and all other relevant information which the Rights Agent may reasonably request, send) send, by first-class, insured, postage prepaid mail, to each record holder of the Common Stock as of the close of
business on the Distribution Date (other than any Acquiring Person or any Affiliate or Associate thereof), one or more Right Certificates evidencing one Right (subject to adjustment as provided herein) for each share of Common Stock so held. If an
adjustment in the number of Rights per share of Common Stock has been made pursuant to Section 8, the Company shall, at the time of distribution of the Right Certificates, make the necessary and appropriate rounding adjustments in accordance with
Section 11(a) so that Right Certificates representing only whole numbers of Rights are distributed and cash is paid in lieu of any fractional Rights. The Company shall promptly notify the Rights Agent in writing upon the occurrence of the
Distribution Date. Until such notice is received by the Rights Agent, the Rights Agent may presume conclusively for all purposes that the Distribution Date has not occurred.

       (d) Rights shall be issued
in respect of all shares of Common Stock outstanding as of the Record Date or
issued (on original issuance or out of treasury) after the Record Date but prior
to the earlier  of the Distribution Date and the Expiration Date. In addition,
in connection with the issuance or sale of shares of Common Stock following the
Distribution Date and prior to the Expiration

6

  Date, the Company (i) shall, with respect to shares of Common Stock so issued or sold (A) pursuant to the exercise of stock options or under any employee plan or arrangement or (B) upon the exercise, conversion or exchange of
other securities issued by the Company prior to the Distribution Date, and (ii) may, in any other case, if deemed appropriate by the Board, issue Right Certificates representing the appropriate number of Rights in connection with such issuance or
sale; provided that no such Right Certificate shall be issued if, and to the extent that, (i) the Company is advised by counsel that such issuance would create a significant risk of material
adverse tax consequences to the Company or the Person to whom such Right Certificate would be issued or (ii) appropriate adjustment shall otherwise be made in lieu of the issuance thereof.

       Section 3. Form of Right Certificates. (a)
  The certificates evidencing the Rights (and the forms of assignment, election
  to purchase and certificates to be printed on the reverse thereof) (the “Right Certificates”)
  shall be substantially in the form of Exhibit C hereto and may have such marks
  of identification or designation and such legends, summaries or endorsements
  printed thereon as the Company may deem appropriate (but which do not affect
  the rights, duties or obligations of the Rights Agent as set forth in this
  Agreement) and as are not inconsistent with the provisions of this Agreement,
  or as may be required to comply with any applicable law, rule or regulation
  or with any rule or regulation of any stock exchange on which the Rights may
  from time to time be listed, or to conform to usage. The Right Certificates,
whenever distributed, shall be dated as of the Record Date.

       (b) The Right
  Certificates shall be executed on behalf of the Company by its Chairman of
  the Board, its Chief Executive Officer, its President or any Vice President,
  either manually or by facsimile signature, and shall have affixed thereto the
  Company’s seal or a facsimile thereof which shall be attested by the Secretary
  or an Assistant Secretary of the Company, either manually or by facsimile signature.
  The Right Certificates shall be manually countersigned by the Rights Agent
  and shall not be valid for any purpose unless so countersigned. In case any
  officer of the Company whose manual or facsimile signature is affixed to the
  Right Certificates ceases to be such officer of the Company before countersignature
  by the Rights Agent and issuance and delivery by the Company, such Right Certificates
  may, nevertheless, be countersigned by the Rights Agent and issued and delivered
  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. Any Right Certificate may
  be signed on behalf of the Company by any Person who, at the actual date of
  the execution of such Right Certificate, shall be a proper officer of the Company
  to sign such Right Certificate, although at the date of the execution of this
Rights Agreement any such Person was not such an officer.

       (c) Notwithstanding any
of the provisions of this Agreement or of the Rights to the contrary, the Company
may, at its option, issue new Right Certificates evidencing Rights in such form
as may be  approved by its Board (but which do not affect the rights, duties
or obligations of the Rights Agent as set

7

  forth in this Agreement) to reflect any adjustment or change in the Purchase Price and the number or kind or class of shares of stock issuable upon exercise of the Rights made in accordance with the provisions of this
Agreement.

       Section 4. Registration; Transfer and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates. (a)
Following the Distribution Date, and receipt by the Rights Agent of (i) written notice of the Distribution Date, and (ii) a shareholder list and such relevant information as reasonably requested by the Rights Agent, the Rights Agent shall keep or
cause to be kept, at its office designated as the place for surrender of Right Certificates upon exercise, transfer or exchange, books for registration and transfer of the Right Certificates. Such books shall show with respect to each Right
Certificate the name and address of the registered holder thereof, the number of Rights indicated on the certificate and the certificate number.

       (b) At any time after the Distribution Date and prior to the Expiration Date, any Right Certificate or Certificates may, upon the terms and subject to the conditions set forth in this Agreement, be
transferred or exchanged for another Right Certificate or Certificates evidencing a like number of Rights as the Right Certificate or Certificates surrendered. Any registered holder desiring to transfer or exchange any Right Certificate or
Certificates shall surrender such Right Certificate or Certificates (with, in the case of a transfer, the form of assignment and certificate on the reverse side thereof duly executed) to the Rights Agent at the office of the Rights Agent designated
for such purpose. Neither the Rights Agent nor the Company shall be obligated to take any action whatsoever with respect to the transfer of any such surrendered Right Certificate or Certificates until the registered holder of the Rights has complied
with the requirements of Section 5(f). Upon satisfaction of the foregoing requirements, the Rights Agent shall, subject to Sections 5(e), 5(f), 7(e), 11 and 20, countersign and deliver to the Person entitled thereto a Right Certificate or
Certificates as so requested. The Company may require payment of a sum sufficient to cover any tax or charge that may be imposed in connection with any transfer or exchange of any Right Certificate or Certificates. The Rights Agent shall have no
duty or obligation to take any action under any Section of this Agreement which may require the payment by a Rights holder of applicable taxes and/or charges unless and until it is satisfied that all such required taxes and/or charges have been
paid.

       (c) 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 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 issue and deliver a new Right Certificate of like tenor to
  the Rights Agent for countersignature and delivery to the registered owner
in lieu of the Right Certificate so lost, stolen, destroyed or mutilated.

  8

       Section 5. Exercise of Rights. (a) The registered holder of any Right Certificate may exercise the Rights evidenced thereby (except as
otherwise provided herein, including Sections 5(e), 5(f), 7(c) and 8(a)) in whole or in part at any time after the Distribution Date and prior to the Expiration Date upon surrender of the Right Certificate, with the form of election to purchase and
the certificate on the reverse side thereof duly executed, to the Rights Agent at the office of the Rights Agent designated for such purpose, together with payment (in lawful money of the United States of America by certified check or bank draft
payable in immediately available or next day funds to the order of the Company) of the aggregate Purchase Price with respect to the Rights then to be exercised and an amount equal to any applicable tax or charge.

       (b) Upon satisfaction of the requirements of Section 5(a) and subject to Section 17(k), 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 therefor) certificates for the total number of one one-hundredths of a share of Preferred Stock to be purchased (and the Company hereby irrevocably authorizes its transfer agent to comply
with all such requests) or (B) if the Company shall have elected to deposit the shares of Preferred Stock issuable upon exercise of the Rights with a depositary agent, requisition from the depositary agent depositary receipts representing interests
in such number of one one-hundredths of a share of Preferred Stock to be purchased (in which case certificates for the shares of Preferred Stock represented by such receipts shall be deposited by the transfer agent with the depositary agent and the
Company will direct the depositary agent to comply with such request), (ii) requisition from the Company the amount of cash, if any, to be paid in lieu of issuance of fractional shares in accordance with Section 11 and (iii) after receipt of such
certificates or depositary receipts and cash, if any, cause the same to be delivered to or upon the order of the registered holder of such Right Certificate (with such certificates or receipts registered in such name or names as may be designated by
such holder). If the Company is obligated to deliver Common Stock or other securities or assets pursuant to this Agreement, the Company will make all arrangements necessary so that such securities and assets are available for delivery by the Rights
Agent, if and when necessary to comply with this agreement.

       (c) Each Person (other than the Company) 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
such 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 taxes or charges) was made;
  provided that if the date of such surrender and payment is a date upon which the transfer books of the Company relating to the Preferred Stock are closed, such Person shall be deemed to have
become the record holder of such shares on, and such certificate shall be dated, the next succeeding Business Day on which the applicable transfer books of the Company are open. Prior to the exercise of the Rights evidenced thereby, 

  9

  

  the holder of a Right Certificate shall not be entitled to any rights of a stockholder of the Company with respect to shares for which the Rights shall be exercisable, including the right to vote, to receive dividends or other
distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company except as provided herein.

       (d) In case the registered holder of any Right Certificate shall exercise less than all the Rights evidenced thereby, a new Right Certificate evidencing the number of Rights remaining unexercised
shall be issued by the Rights Agent and 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, subject to the provisions of Section 11.

       (e) Notwithstanding anything in this Agreement to the contrary, from and after the first occurrence of a Section 8(a)(ii) Event, any Rights Beneficially Owned by (i) an Acquiring Person or an
Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such Associate or Affiliate of an Acquiring Person) who (A) becomes a transferee after a Section 8(a)(ii) Event, (B) becomes a transferee prior to or
concurrently with a Section 8(a)(ii) Event and receives such Rights pursuant to either (1) a transfer (whether or not for consideration) from the Acquiring Person (or any such Associate or Affiliate) to holders of equity interests in such Acquiring
Person (or in any such Associate or Affiliate) or to any Person with whom the Acquiring Person (or any such Associate or Affiliate) has any continuing agreement, arrangement or understanding regarding the transferred Rights or (2) a transfer which
the Board determines in good faith is part of a plan, arrangement or understanding which has as a primary purpose or effect the avoidance of this Section 5(e), shall become null and void without any further action, and no holder of such Rights shall
have any rights whatsoever with respect to such Rights, whether under this Agreement or otherwise. The Company shall promptly notify the Rights Agent in writing when this Section 5(e) applies and shall use all reasonable efforts to insure that the
provisions of this Section 5(e) are complied with, but neither the Company nor the Rights Agent shall have any 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 and Associates or any transferee of any of them hereunder.

       (f) Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake any action with respect to any purported transfer pursuant to
Section 4 or exercise pursuant to this Section 5 unless the registered holder of the applicable Rights (i) shall have duly and properly completed and signed the certificate contained in the form of assignment or election to purchase, as the case may
be, set forth on the reverse side of the Right Certificate surrendered for such transfer or exercise, as the case may be, (ii) shall not have indicated an affirmative response to clause 1 or 2 thereof and (iii) shall have provided such additional
evidence of the identity of the

  10

  

  

  Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company or the Rights Agent shall reasonably request.

       Section 6. Cancellation and Destruction of Right Certificates. All Right Certificates surrendered for exercise, transfer or exchange
shall, if surrendered to the Company or to any of its agents, be delivered to the Rights Agent in cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by it, and no Right Certificates shall be issued in lieu thereof except as
expressly permitted by this Agreement. The Company shall deliver to the Rights Agent for cancellation, and the Rights Agent shall cancel, any other Right Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The
Rights Agent shall deliver all cancelled Right Certificates to the Company, or shall, at the written request of the Company, destroy such cancelled Right Certificates, and in such case shall deliver a certificate of destruction thereof to the
Company.

       Section 7. Reservation and Availability of Capital Stock. (a) The Company covenants and agrees that it will cause to be reserved and
kept available a number of authorized but not outstanding shares of Preferred Stock sufficient to permit the exercise in full of all outstanding Rights as provided in this Agreement.

       (b) So long as the Preferred Stock issuable upon the exercise of Rights may be listed on any national securities exchange, the Company shall use its best efforts to cause, from and after such time as
the Rights become exercisable, all securities reserved for such issuance to be listed on any such exchange upon official notice of issuance upon such exercise.

       (c) The Company shall (i) file, as soon as practicable following the earliest date after the occurrence of a Section 8(a)(ii) Event and determination of the consideration to be delivered by the
Company upon exercise of the Rights in accordance with Section 8(a)(iii), or as soon as is required by law following the Distribution Date, as the case may be, a registration statement under the Securities Act with respect to the securities issuable
upon exercise of the Rights, (ii) to cause such registration statement to become effective as soon as practicable after such filing and (iii) cause such registration statement to remain effective (with a prospectus at all times meeting the
requirements of the Securities Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for such securities and (B) the Expiration Date. The Company shall also take such action as may be appropriate to ensure
compliance with the securities or blue sky laws of the various states in connection with the exercisability of the Rights. The Company may temporarily suspend, for a period of time not to exceed 90 days after the date set forth in Section 7(c)(i),
the exercisability of the Rights in order to prepare and file such registration statement 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 (with prompt written notice thereof to the Rights Agent), as well as a public announcement when the suspension is no longer in effect (with prompt written notice thereof to the Rights Agent). Notwithstanding anything
contained in this 

  11

  

  

  Agreement to the contrary, the Rights shall not be exercisable for securities in any jurisdiction if the requisite qualification in such jurisdiction has not been obtained, such exercise is not permitted under applicable law or a
registration statement in respect of such securities has not been declared effective.

       (d) The Company shall take all such action as may be necessary to insure that all one one-hundredths of a share of Preferred Stock issuable upon exercise of Rights shall, at the time of delivery of
the certificates for such securities (subject to payment of the Purchase Price), be duly authorized, validly issued, fully paid and nonassessable.

       (e) The Company
  shall pay when due and payable any and all federal and state taxes and charges
  which may be payable in respect of the issuance or delivery of the Right Certificates
  and of any certificates for Preferred Stock upon the exercise of Rights. The
  Company shall not, however, be required to pay any tax or charge which may
  be payable in respect of any transfer involved in the issuance or delivery
  of any Right Certificates or any certificates for Preferred Stock to a Person
  other than the registered holder of the applicable Right Certificate. Prior
  to any such issuance or delivery of any Right Certificates or any certificates
  for Preferred Stock, any such tax or charge shall have been paid by the holder
  of such Right Certificate or it shall have been established to the Company’s
satisfaction that no such tax or other charge is due.

       Section 8. Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights. (a)(i) If the Company at any time after the
date of this Agreement (A) pays a dividend on the Preferred Stock in shares of Preferred Stock, (B) subdivides the outstanding Preferred Stock into a greater number of shares, (C) combines the outstanding Preferred Stock into a smaller number of
shares or (D) issues any shares of its capital stock in a reclassification of the Preferred Stock (including any such reclassification in connection with a consolidation or merger involving the Company), the Purchase Price in effect immediately
prior to the record date for such dividend or the effective date of such subdivision, combination or reclassification, and the number and kind of shares of Preferred Stock or other capital stock issuable on such date, shall be proportionately
adjusted so that each holder of a Right shall (except as otherwise provided herein, including Section 5(e)) thereafter be entitled to receive, upon exercise of such Right at the Purchase Price in effect immediately prior to such date, the aggregate
number and kind of shares of Preferred Stock or other capital stock, as the case may be, which such holder would have been entitled to receive upon such exercise and by virtue of such dividend, subdivision, combination or reclassification as if such
Right had been exercised immediately prior to the record date for such dividend or the effective date of such subdivision, combination or reclassification. If an event occurs which requires an adjustment under both this Section 8(a)(i) and Section
8(a)(ii), the adjustment provided for in this Section 8(a)(i) shall be made prior to, and in addition to, any adjustment required pursuant to Section 8(a)(ii).

  12

        (ii) If
        any Person, alone or together with its Affiliates and Associates, becomes,
        at any time after the date of this Agreement, an Acquiring Person (a “Section
    8(a)(ii) Event”), then each holder of a Right shall (except as otherwise
    provided herein, including Section 5(e)) thereafter be entitled to receive,
    upon exercise thereof at the Purchase Price in effect immediately prior to
    the first occurrence of a Section 8(a)(ii) Event, in lieu of Preferred Stock,
    such number of duly authorized, validly issued, fully paid and nonassessable
    shares of Common Stock of the Company (such shares being referred to herein
    as the “Adjustment Shares”) equal to the result obtained
  by dividing

  
          (x) the
          product obtained by multiplying the Purchase Price in effect immediately
          prior to the first occurrence of a Section 8(a)(ii) Event by the number
          of one one-hundredths of a share of Preferred Stock for which a Right
          was exercisable immediately prior to such first occurrence (such product
          being from such time on the “Purchase Price” for each Right
      and for all purposes of this Agreement) by

          (y) 50% of the current market price per share of Common Stock (determined pursuant to Section 8(d)(i)) on the date of such first occurrence;

  

  
    provided, however, that the Purchase Price (as so adjusted pursuant to the foregoing clause (ii)(x)) and the number of Adjustment Shares
  so receivable upon exercise of a Right shall be subject to further adjustment as appropriate in accordance with Section 8(f). From and after the occurrence of a Section 10 Event, any Rights that have not theretofore been exercised pursuant to this
  Section 8(a)(ii) shall thereafter be exercisable only in accordance with Section 10 and not pursuant to this Section 8(a)(ii).

        (iii) If
        the number of shares of Common Stock which are authorized by the Company’s
        certificate of incorporation but not outstanding or reserved for issuance
        other than upon exercise of the Rights is not sufficient to permit the
        exercise in full of the Rights in accordance with Section 8(a)(ii), the
        Company shall, with respect to each Right, make adequate provision to
        substitute for the Adjustment Shares, upon payment of the Purchase Price
        then in effect, (A) (to the extent available) Common Stock, then (B)
        (to the extent available) such number of one one-hundredths of a share
        of Preferred Stock as are then equivalent in value to the value of the
        Adjustment Shares and then (C) other equity or debt securities of the
        Company, cash or other assets, a reduction in the Purchase Price or any
        combination of the foregoing, having an aggregate value (as determined
        by the Board based upon the advice of a nationally recognized investment
  banking firm) equal to the value of the Adjustment Shares; provided that (1) the Company may, and (2) if the Company shall 

  13

  

  

  
    not have made adequate provision as required above
    to deliver value within 30 days following the first occurrence of a Section
    8(a)(ii) Event (the “Substitution Period”), then the Company shall be obligated to deliver, upon the
    surrender for exercise of a Right and without requiring payment of the Purchase
    Price, (x) (to the extent available) Common Stock, then (y) (to the extent
    available) one-hundredths of a share of Preferred Stock and then, (z) other
    equity or debt securities of the Company, cash or other assets or any combination
    of the foregoing, having an aggregate value (as determined by the Board based
    upon the advice of a nationally recognized investment banking firm) equal
    to the excess of the value of the Adjustment Shares over the Purchase Price.
    To the extent that the Company determines that some action is to be taken
    pursuant to the preceding sentence, the Company (A) shall provide, subject
    to Section 5(e), that such action shall apply uniformly to all outstanding
    Rights and (B) may suspend the exercisability of the Rights until the expiration
    of the Substitution Period in order to decide the appropriate form and value
    of any consideration to be delivered as referred to in such sentence. If
    any such suspension occurs, the Company shall issue a public announcement
    stating that the exercisability of the Rights has been temporarily suspended,
    as well as a public announcement at such time as the suspension is no longer
    in effect. For purposes of this Section 8(a)(iii), the value of the Common
    Stock shall be the current market price per share of Common Stock (as determined
    pursuant to Section 8(d)(i)) on the date of the first occurrence of a Section
    8(a)(ii) Event; any common stock equivalent shall be deemed to have the same
    value as the Common Stock on such date; and the value of other securities
    or assets shall be determined pursuant to Section 8(d)(iii).

       (b) If the
  Company fixes a record date for the issuance of rights, options or warrants
  to all holders of Preferred Stock entitling them to subscribe for or purchase
  (for a period expiring within 45 calendar days after such record date) Preferred
  Stock (or securities having the same rights, privileges and preferences as
  the shares of Preferred Stock (“equivalent preferred stock”))
  or securities convertible into or exercisable for Preferred Stock (or equivalent
  preferred stock) at a price per share of Preferred Stock (or equivalent preferred
  stock) (in each case, taking account of any conversion or exercise price) less
  than the current market price per share of Preferred Stock (as determined pursuant
  to Section 8(d)(ii)), then 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 date by a fraction, the numerator
  of which shall be the sum of (i) the number of shares of Preferred Stock outstanding
  on such record date plus (ii) the number of shares of Preferred Stock which
  the aggregate price (taking account of any conversion or exercise price) of
  the total number of shares of Preferred Stock (and/or equivalent preferred
  stock) so to be offered would purchase at such current market price and the
  denominator of which shall be the sum of (i) number of shares of Preferred
Stock outstanding on such record date 

14

  

  plus (ii) the number of additional shares of Preferred Stock (and/or equivalent preferred stock) so to be offered. If such subscription price may be paid by delivery of consideration part or all of which will 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 written statement filed with the Rights Agent and shall be conclusive for all purposes. Shares of Preferred
Stock 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 if 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) If the Company fixes a record date for the making of a distribution to all holders of Preferred Stock (including any such distribution in connection with a consolidation or merger involving the
Company) of evidences of indebtedness, equity securities other than Preferred Stock, assets (other than a regular periodic cash dividend out of the earnings or retained earnings of the Company) or rights, options or warrants (excluding those
referred to in Section 8(b)), the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the current
market price per share of Preferred Stock (as determined pursuant to Section 8(d)(iii)) on such record date, less the value (as determined pursuant to Section 8(d)(iii)) of such evidences of indebtedness, equity securities, assets, rights, options
or warrants so to be distributed with respect to one share of Preferred Stock and the denominator of which shall be such current market price per share of Preferred Stock. Such adjustment shall be made successively whenever such a record date is
fixed, and if such distribution is not so made, 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.

       (d) (i) For
  purposes of computations hereunder other than computations made pursuant to
  Sections 8(a)(iii) or 11, the “current market price” per share of Common Stock on any date shall be
the average of the daily closing prices per share of such Common Stock at the close of the regular session of trading for the 30 Trading Days immediately prior to such date; for purposes of computations made pursuant to Section 8(a)(iii), the
“current market price” per share of Common Stock on any date shall be deemed to be the average of the daily closing prices per share of such Common Stock at the close of the regular session of trading for the 10 Trading Days immediately
following such date; and for purposes of computations made pursuant to Section 11, the “current market price” per
share of Common Stock for any Trading Day shall be the closing price per share
of Common Stock at the close of the regular session of trading for such Trading
Day; provided that if the current market price per share of the Common Stock is determined during a period that is in whole or in part following the

  15

  

  announcement by the issuer of such Common Stock of
  (A) a dividend or distribution on such Common Stock payable in shares of such
  Common Stock or securities exercisable for or convertible into shares of such
  Common Stock (other than the Rights), or (B) any subdivision, combination or
  reclassification of such Common Stock, and prior to 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 market price” shall be properly adjusted to take into account ex-dividend trading. The closing price for each day shall be the last sale price, regular way, at the close of the regular session of trading or,
if 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 at the close of the regular session of trading with respect
to securities listed or admitted to trading on the New York Stock Exchange or, if the shares of Common Stock are not listed or admitted to trading on the New York Stock Exchange, on the principal national securities exchange on which the shares of
Common Stock are listed or admitted to trading or, if the shares of Common Stock are not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices
in the over-the-counter market, as reported by the National Association of Securities Dealers, Inc. Automated Quotation System or such other system then in use or, if on any such date the shares of Common Stock are not quoted by any such
organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Common Stock selected by the Board (in each case prices which are not identified as having been reported late to such
system). If on any such date, no market maker is making a market in the Common Stock or the Common Stock is not publicly held or not so listed or traded, the “current market value” of
such shares on such date shall be as determined in good faith by the Board (or,
if at the time of such determination there is an Acquiring Person, by a nationally
recognized investment banking firm selected by the Board) which determination
shall be described in a written statement filed with the Rights Agent and shall
be conclusive for all purposes.

        (ii) For
        the purpose of any computation hereunder, the “current market price” per share of Preferred Stock shall be determined in the same manner as set forth above for the Common Stock in
    Section 8(d)(i) (other than the last sentence thereof). If the current market price per share of Preferred Stock cannot be determined in such manner, the “current market price” per
    share of Preferred Stock shall be conclusively deemed to be an amount equal
    to 100 (as such number may be appropriately adjusted for such events as stock
    splits, stock dividends and recapitalizations with respect to the Common
    Stock occurring after the date of this Agreement) multiplied by the current
    market price per share of Common Stock (as determined pursuant to Section
    8(d)(i)). For all purposes of this Agreement,
    the “current market price” of one one-hundredth of a share of 

16

  

  
    Preferred Stock shall be equal to the “current market price” of
    one share of Preferred Stock divided by 100.

        (iii) For the purpose of any computation hereunder, the value of any securities or assets other than Common Stock or Preferred Stock shall be the fair value as determined in good faith by the Board,
    or, if at the time of such determination there is an Acquiring Person, by a nationally recognized investment banking firm selected by the Board, which determination shall be described in a written statement filed with the Rights Agent and shall be
    conclusive for all purposes.

       (e) Notwithstanding any provision of this Agreement to the contrary, 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 that any adjustments which by reason of this Section 8(e) are not required to be made shall be carried forward and taken into account in any subsequent
adjustment. All calculations under this Section 8 shall be made to the nearest cent or to the nearest ten-thousandth of a share of Common Stock or other share or one-millionth of a share of Preferred Stock, as the case may be.

       (f) If at any time, as a result of an adjustment made pursuant to Sections 8(a)(ii) or 10(a), the holder of any Right is entitled to receive upon exercise of such Right any shares of capital stock
other than Preferred Stock, thereafter the number of such other shares so receivable upon exercise of any Right and the Purchase Price thereof shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to the Preferred Stock contained in Section 8, and the provisions of Sections 5, 7, 10 and 11 with respect to the Preferred Stock shall apply on like terms to any such other shares.

       (g) All Rights originally issued by the Company subsequent to any adjustment made hereunder shall evidence the right to purchase, at the Purchase Price then in effect, the then applicable number of
one one-hundredths of a share of Preferred Stock and other capital stock issuable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided herein.

       (h) Unless the Company has exercised its election as provided in Section 8(i), upon each adjustment of the Purchase Price as a result of the calculations made in Sections 8(b) and 8(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 one-millionth)
obtained by (i) multiplying (x) the number of one one-hundredths of a share of Preferred Stock for which a Right was exercisable immediately prior to this adjustment by (y) the Purchase Price in effect immediately prior to such adjustment of the
Purchase Price and (ii) dividing the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price.

  17

  

       (i) The Company
  may elect on or after the date of any adjustment of the Purchase Price to adjust
  the number of Rights, in lieu of any adjustment in the number of one one-hundredths
  of a share of Preferred Stock issuable upon the exercise of a Right. Each of
  the Rights outstanding after such adjustment of the number of Rights shall
  be exercisable for the number of one one-hundredths of a share of Preferred
  Stock for which such 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-thousandth)
  obtained by dividing the Purchase Price in effect immediately prior to adjustment
  of the Purchase Price by the Purchase Price in effect immediately after adjustment
  of the Purchase Price. The Company shall make a public announcement of its
  election to adjust the number of Rights, indicating the record date for the
  adjustment, and, if known at the time, the amount of the adjustment to be made.
  This record date may be the date on which the Purchase Price is adjusted or
  any day thereafter, but, if the Right Certificates have been issued, shall
  be at least 10 days later than the date of the public announcement. If Right
  Certificates have been issued, upon each adjustment of the number of Rights
  pursuant to this Section 8(i), the Company shall, as promptly as practicable,
  cause to be distributed to holders of record of Right Certificates on such
  record date Right Certificates evidencing, subject to Section 11, the additional
  Rights to which such holders shall be entitled as a result of such adjustment,
  or, at the option of the Company, shall cause to be distributed to such holders
  of record in substitution and replacement for the Right Certificates held by
  such holders prior to the date of adjustment, and upon surrender thereof, if
  required by the Company, new Right Certificates evidencing all the Rights to
  which such holders shall be entitled after such adjustment. Right Certificates
  so to be distributed shall be issued, executed and countersigned in the manner
  provided for herein (and may bear, at the option of the Company, the adjusted
  Purchase Price) and shall be registered in the names of the holders of record
of Right Certificates on the record date specified in the public announcement.

       (j) Irrespective of any adjustment or change in the Purchase Price or the number of 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 per one one-hundredth of a share and the number of shares which were expressed in the initial Right Certificates issued hereunder.

       (k) Before taking any action that would cause an adjustment reducing the Purchase Price below the par value, if any, of the number of one one-hundredths of a share of Preferred 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 such number of one one-hundredths of a
share of Preferred Stock at such adjusted Purchase Price.

  18

  

       (l) In any case in which this Section 8 shall require that an adjustment in the Purchase Price be made effective as of a record date for a specified event, the Company may elect to defer until the
occurrence of such event the issuance to the holder of any Right exercised after such record date the number of one one-hundredths of a share of Preferred Stock or other capital stock, if any, issuable upon such exercise over and above the number of
one one-hundredths of a share of Preferred Stock or other capital stock, if any, issuable upon such exercise on the basis of the Purchase Price in effect prior to such adjustment; provided that
the Company shall deliver to such holder a due bill or other appropriate instrument
evidencing such holder’s right to receive such additional shares upon the
occurrence of the event requiring such adjustment.

       (m) Anything in this Section 8 to the contrary notwithstanding, the Company shall be entitled to make such reductions in the Purchase Price, in addition to those adjustments expressly required by this
Section 8, as and to the extent that it, in its sole discretion, determines to be advisable so that any consolidation or subdivision of the Preferred Stock, issuance wholly for cash of any Preferred Stock at less than the current market price,
issuance wholly for cash of any Preferred Stock or securities which by their terms are convertible into or exercisable for Preferred Stock, stock dividends or issuance of rights, options or warrants referred to in this Section 8 hereafter made by
the Company to the holders of its Preferred Stock, shall not be taxable to such stockholders.

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

       (o) The Company agrees that after the Distribution Date, it will not, except as permitted by Sections 19, 20 or 23, 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 substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights.

       (p) Notwithstanding anything
in this Agreement to the contrary, if at any time after the date hereof and prior
to the Distribution Date the Company (i)

19

  

  pays a dividend on the outstanding shares of Common Stock payable in shares of Common Stock, (ii) subdivides the outstanding Common Stock into a larger number of shares or (iii) combines the outstanding Common Stock into a smaller
number of shares, the number of Rights associated with each share of Common Stock then outstanding, or issued or delivered thereafter as contemplated by Section 2, shall be proportionately adjusted so that the number of Rights thereafter associated
with each share of Common Stock following any such event equals the product 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.

       Section 9.
Certificate of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made as provided in Sections 8 or 10, the Company shall (a) promptly prepare a certificate setting forth such adjustment and a brief statement of the facts and calculations accounting for such adjustment,
(b) promptly file with the Rights Agent and with each transfer agent for the Preferred Stock and the Common 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) in the manner set forth in Section 22. The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment or statement contained therein and
shall have no duty or liability with respect to and shall not be deemed to have knowledge of such adjustment unless and until it shall have received such certificate.

       Section 10.
Consolidation, Merger or Sale or Transfer of Assets or Earning Power. (a)
If, following the occurrence of a Section  8(a)(ii) Event, directly or indirectly, 

        (x) the Company consolidates with, merges into or otherwise combines with, any Acquiring Person or any Affiliate or Associate of an Acquiring Person, and the Company is not the continuing or surviving
    corporation of such consolidation, merger or combination;

        (y) any Acquiring Person or any Affiliate or Associate of an Acquiring Person merges into, or otherwise combines with, the Company, and the Company is the continuing or surviving corporation of such
    merger or combination and, in connection with such merger or combination, all or part of the outstanding shares of Common Stock is changed into or exchanged for other stock or securities of the Company or of any Acquiring Person or any Affiliate or
    Associate of an Acquiring Person, cash or any other property; or

20

  

        (z) the Company and/or one or more of its Subsidiaries sells or otherwise transfers, in one transaction or a series of related transactions, to any Acquiring Person or any Affiliate or Associate of an
    Acquiring Person, assets or earning power aggregating more than 50% of the assets or earning power of the Company and its Subsidiaries, taken as a whole,

  (each of the above, a “Section 10 Event”)
then, and in each such case, proper provision shall promptly be made so that

        (i) each holder of a Right shall thereafter be entitled to receive, upon exercise thereof at the Purchase Price in effect immediately prior to the first occurrence of a Section 8(a)(ii) Event, such
    number of duly authorized, validly issued, fully paid and nonassessable shares of freely tradable Common Stock of the Principal Party (as hereinafter defined), not subject to any rights of call or first refusal, liens, encumbrances or other claims,
    as shall be equal to the result obtained by dividing

  
          (A) the
          product obtained by multiplying the Purchase Price in effect immediately
          prior to the first occurrence of a Section 8(a)(ii) Event by the number
          of one one-hundredths of a share of Preferred Stock for which a Right
          was exercisable immediately prior to such first occurrence (such product
          being from such time on the “Purchase Price” for each Right
      and for all purposes of this Agreement) by

          (B) 50% of the current market price (determined pursuant to Section 8(d)(i)) per share of the Common Stock of such Principal Party on the date of consummation of such consolidation, merger,
      combination, sale or transfer;

  

  
    provided, however, that the Purchase Price (as so adjusted pursuant to the foregoing clause (i)(A)) and the number of shares of Common
  Stock of such Principal Party so receivable upon exercise of a Right shall be subject to further adjustment as appropriate in accordance with Section 8(f) to reflect any events occurring in respect of the Common Stock of such Principal Party after
  the occurrence of such consolidation, merger, sale or transfer;

        (ii) the Principal Party shall thereafter be liable for, and shall assume, by virtue of such consolidation, merger, combination, sale or transfer, all the obligations and duties of the Company
  pursuant to this Agreement;

        (iii) the
        term “Company” shall thereafter be deemed to refer to
        such Principal Party, it being specifically intended that the provisions
        of Section 8 shall apply only to such Principal Party following the first
  occurrence of a Section 10 Event; and

21

  

        (iv) such Principal Party shall take such steps (including the authorization and reservation of a sufficient number of shares of its Common Stock to permit exercise of all outstanding Rights in
    accordance with this Section 10(a)) in connection with the consummation of any such transaction as may be necessary to assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to the shares of its
    Common Stock thereafter deliverable upon the exercise of the Rights.

       (b) “Principal Party” means

        (i) in the case of any transaction described in Sections 10(a)(x) or 10(a)(y), the Person that is the issuer of any securities into which shares of Common Stock of the Company are converted in such
    merger, consolidation or combination, and if no securities are so issued, the Person that survives or results from such merger, consolidation or combination; or

        (ii) in the case of any transaction described in Section 10(a)(z), the Person that is receiving the greatest portion of the assets or earning power transferred pursuant to such transaction or
    transactions;

  
    provided that
    in any such case, (A) if the Common Stock of such Person is not at such time
    and has not been continuously over the preceding 12-month period registered
    under Section 12 of the Exchange Act, and such Person is a direct or indirect
    Subsidiary of another Person the Common Stock of which is and has been so
    registered, “Principal Party” shall refer to such other Person; and (B) in case such Person is a Subsidiary,
  directly or indirectly, of more than one Person, the Common Stocks of two or more of which are and have been so registered, “Principal Party” shall
  refer to whichever of such Persons is the issuer of the Common Stock having
  the greatest aggregate market value.

       (c) The Company shall not consummate any such consolidation, merger, combination, sale or transfer unless the Principal Party has a sufficient number of authorized shares of its Common Stock which are
not outstanding or otherwise reserved for issuance to permit the exercise in full of the Rights in accordance with this Section 10 and unless prior thereto the Company and such Principal Party shall have executed and delivered to the Rights Agent a
supplemental agreement providing for the terms set forth in Sections 10(a) and 10(b) and providing that, as soon as practicable after the date of any consolidation, merger, combination, sale or transfer mentioned in Section 10(a), the Principal
Party shall (i) prepare and file a registration statement under the Securities Act with respect to the securities issuable upon exercise of the Rights, and shall use its best efforts to cause such registration statement (A) to become effective as
soon as practicable after such filing and (B) to remain effective (with a prospectus at all times meeting the requirements of the Securities Act) until the Expiration Date, and (ii) deliver to holders of the Rights historical financial 

  22

  

  statements for the Principal Party which comply in all respects with the requirements for registration on Form 10 under the Exchange Act.

       Section 11. Fractional Rights and Fractional Shares. (a) The Company is not required to issue fractions of Rights, except prior to the
Distribution Date as provided in Section 8(p), or to distribute Right Certificates which evidence fractional Rights. In lieu of any such fractional Rights, the Company shall pay 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 price of a whole Right. For purposes of this Section 11(a), the current market price of a whole Right shall be the closing
price of a Right at the close of the regular session of trading for the Trading Day immediately prior to the date on which such fractional Rights would otherwise have been issuable. The closing price of a Right for any day shall be determined in the
manner set forth for the Common Stock in Section 8(d)(i).

       (b) The Company
  is not required to issue fractions of shares of Preferred Stock (other than
  fractions which are multiples of one one–hundredth of a share of Preferred
  Stock) upon exercise of the Rights or to distribute certificates which evidence
  fractional shares of Preferred Stock (other than fractions which are multiples
  of one one-hundredth of a share of Preferred Stock). In lieu of any such fractional
  shares of Preferred Stock, the Company shall pay to the registered holders
  of Right Certificates at the time such Rights are exercised as herein provided
  an amount in cash equal to the same fraction of the current market price of
  one one-hundredth of a share of Preferred Stock. For purposes of this Section
  11(b), the current market price of one one-hundredth of a share of Preferred
  Stock shall be one one-hundredth of the closing price of a share of Preferred
  Stock (as determined pursuant to Section 8(d)) for the Trading Day immediately
prior to the date of such exercise.

       (c) Following the occurrence of any Section 8(a)(ii) Event or Section 10 Event or upon any exchange pursuant to Section 20, the Company shall not be required to issue fractions of shares of Common Stock upon exercise of the Rights or to distribute certificates which evidence fractional shares of
Common Stock. In lieu of fractional shares of Common Stock, the Company shall pay to the registered holders of Right Certificates at the time such Rights are exercised or exchanged as herein provided an amount in cash equal to the same fraction of
the current market price of a share of Common Stock. For purposes of this Section 11(c), the current market price of a share of Common Stock shall be the closing price of a share of Common Stock (as determined pursuant to Section 8(d)) for the
Trading Day immediately prior to the date of such exercise or exchange.

       (d) Each holder of a Right, by his acceptance of the Right, expressly waives his right to receive any fractional Rights or any fractional shares upon exercise of a Right except as permitted by this
Section 11.

  23

  

       (e) Whenever a payment for fractional Rights or fractional shares is to be made by the Rights Agent, the Company shall (i) promptly prepare and deliver to the Rights Agent a certificate setting forth
in reasonable detail the facts related to such payments and the prices and/or formulas utilized in calculating such payments, and (ii) provide sufficient monies to the Rights Agent in the form of fully collected funds to make such payments. The
Rights Agent shall be fully protected in relying upon such a certificate and shall have no duty with respect to, and shall not be deemed to have knowledge of any payment for fractional Rights or fractional shares under any Section of this Agreement
relating to the payment of fractional Rights or fractional shares unless and until the Rights Agent shall have received such a certificate and sufficient monies.

       Section 12. Rights of Action. All rights of action in respect of this Agreement are vested in the respective registered holders of the
Right Certificates (and, prior to the Distribution Date, the registered holders of certificates representing Common Stock); and any such holder, without the consent of any other such holder or the Rights Agent, may, in his own behalf and for his own
benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, his right to exercise the Rights evidenced by such Right Certificate in the manner provided in such Right
Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this
Agreement and will be entitled to specific performance of the obligations under, and injunctive relief against actual or threatened violations of the obligations of, any Person subject to this Agreement.

       (b) Notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability to any holder of a Right or other Person as a result of its inability
to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, judgment, decree or ruling (whether interlocutory or final) issued by 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 all reasonable efforts to have any such injunction, order, judgment, decree or ruling lifted or otherwise overturned as soon as possible.

       Section 13. Agreement of Right Holders. Each holder of a Right, by his acceptance of the Right, 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 be evidenced by and transferable only in connection with the transfer of Common Stock;

  24

  

  

        (b) after the Distribution Date, the Rights will be evidenced by Right Certificates and transferable only on the registry books of the Rights Agent pursuant to Section 4;

        (c) subject to Sections 4 and 5, the Company and the Rights Agent may deem and treat the Person in whose name a Right Certificate (or, prior to the Distribution Date, a certificate representing shares
    of Common Stock) is registered as the absolute owner of such certificate and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the Right Certificate or the certificate representing 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 the last sentence of Section 5(e), shall be affected by any notice to the contrary; and

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

       Section 14. 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 shares of capital stock which may at any time be issuable on the exercise of the Rights represented thereby, nor shall anything contained herein or in any Right Certificate be
construed to confer upon the holder of any Right Certificate, as such, any of the rights of a stockholder of the Company (including any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof,
to give or withhold consent to any corporate action, to receive notice of meetings or other actions affecting stockholders (except as provided in Section 21), or to receive dividends or subscription rights, or otherwise) until the Right or Rights
evidenced by such Right Certificate shall have been exercised in accordance with the provisions hereof.

       Section 15. Appointment of Rights Agent. (a)
  The Company hereby appoints the Rights Agent to act as agent for the Company
  and the holders of the Rights 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’ 

  25

  

  

  prior written notice to the Rights Agent. If the Company appoints one or more co-rights agents, the respective duties of the Rights Agent and any co-rights agents shall be as the Company shall determine. 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 Agents.

       (b) The Company shall 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 disbursements and other disbursements incurred in the execution or administration of this Agreement and the exercise and performance of its duties hereunder. The Company also shall 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 (which gross negligence, bad faith or willful misconduct must be determined by a final, non-appealable order, judgment, decree or
ruling of a court of competent jurisdiction) on the part of the Rights Agent, for any action taken, suffered or omitted by the Rights Agent in connection with the acceptance and administration of this Agreement or the exercise or performance of its
duties hereunder, including the costs and expenses of defending against any claim of liability and enforcing such right of indemnification.

       Section 16.
Merger or Consolidation or Change of Name of Rights Agent. (a) Any Person into or with which the Rights Agent or any successor Rights Agent may be merged, consolidated or combined, any corporation resulting from any merger, consolidation or combination to which the Rights Agent or any
successor Rights Agent shall be a party, or any Person succeeding to the corporate trust or stock transfer business of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Agreement without the
execution or filing of any paper or any further act on the part of any party hereto; provided that such Person would be eligible for appointment as a successor Rights Agent under the
provisions of Section 18. If at the time such successor Rights Agent succeeds to the agency created by this Agreement any of the Right Certificates have been countersigned but not delivered, any such successor Rights Agent may adopt the
countersignature of a predecessor Rights Agent and deliver such Right Certificates so countersigned; and if at that time any of the Right Certificates have not been countersigned, any successor Rights Agent may countersign such Right Certificates
either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement.

       (b) If at any time the
name of the Rights Agent shall be changed and at such time any of the Right Certificates
have been countersigned but not delivered, the Rights Agent may adopt the  countersignature
under its prior name and deliver Right Certificates so countersigned; and if
at that time any of the Right Certificates have not been countersigned, the Rights
Agent may countersign such

26

  Right Certificates either in its prior name or its changed name; and in all such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement.

       Section 17. Duties of the Rights Agent. The Rights Agent undertakes the duties and obligations expressly imposed by this Agreement
(and no implied duties or obligations) 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 the legal advice or 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 absent gross negligence, bad faith or willful misconduct in accordance with and in reliance upon such advice or opinion.

        (b) Whenever
        in the performance of its duties under this Agreement the Rights Agent
        deems it necessary that any fact or matter (including, without limitation,
        the identity of any “Acquiring
    Person” and the determination of “current market price”) be
    proved or established by the Company prior to taking, suffering or omitting
    to take any action hereunder, such fact or matter (unless other evidence
    in respect thereof be herein specifically prescribed) may be deemed to be
    conclusively proved and established by a certificate signed by the Chairman
    of the Board, the Chief Executive Officer, the President or any Vice President
    or the Secretary of the Company and delivered to the Rights Agent; and such
    certificate shall be complete and full authorization and protection to the
    Rights Agent and the Rights Agent shall incur no liability for or in respect
    of any action taken, suffered or omitted by it absent gross negligence, bad
    faith or willful misconduct under the provisions of this Agreement in reliance
    upon such certificate.

        (c) The Rights Agent shall be liable hereunder only to the Company and any other Person only for its own gross negligence, bad faith or willful misconduct (which gross negligence, bad faith or willful
    misconduct must be determined by a final, non-appealable order, judgment, decree or ruling of a court of competent jurisdiction). Anything to the contrary notwithstanding, in no event shall the Rights Agent be liable for special, punitive, indirect,
    consequential or incidental loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Rights Agent has been advised of the likelihood of such loss or damage. Any liability of the Rights Agent under this Agreement
    will be limited to the aggregate amount of fees paid by the Company to the Rights Agent under this Agreement.

27

  

  

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

        (e) The Rights Agent shall not be responsible (i) in respect of the validity of this Agreement or the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect
    of the validity or execution of any Right Certificate (except its countersignature thereof), (ii) for any breach by the Company of any covenant or condition contained in this Agreement or in any Right Certificate, (iii) for any change in the
    exercisability of the Rights (including the Rights becoming null and void pursuant to Section 5(e)) or (iv) any adjustment in the terms of the Rights (including the manner, method or amount thereof) provided herein or the ascertaining of the
    existence of facts that would require any such adjustment (except with respect to the exercise of Rights evidenced by Right Certificates after actual notice of any such adjustment). The Rights Agent shall not 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 Agreement or any Right Certificate or as to whether any shares of Preferred Stock or other
    securities will, when issued, be duly authorized, validly 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 acts, instruments and assurances as may
    reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement.

        (g) The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from the Chairman of the Board, the Chief Executive Officer, the
    President, any Vice President or the Secretary of the Company, and such instructions shall be full authorization and protection to the Rights Agent and the Rights Agent shall not be liable for or in respect of any action taken, suffered or omitted
    by it absent gross negligence, bad faith or willful misconduct in accordance with instructions of any such officer. The Rights Agent shall be fully authorized and protected in relying upon the most recent instructions received by any such
    officer.

        (h) The Rights Agent and any stockholder, director, officer or employee of the Rights Agent may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily
    interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though 

  28

  

  
    it were not the Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other Person.

        (i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself (through its duly authorized directors, officers and
    employees) 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 or any other Person resulting
    from any such act, default, neglect or misconduct, absent gross negligence, bad faith or willful misconduct in the selection and continued employment thereof (which gross negligence, bad faith or willful misconduct must be determined by a final,
    non-appealable order, judgment, decree or ruling of a court of competent jurisdiction).

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

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

        (l) 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 the acceptance and administration of this
    Agreement or the exercise or performance of its duties hereunder in reliance upon any Right Certificate or certificate for Common Stock or for other securities of the Company, instrument of assignment or transfer, power of attorney, endorsement,
    affidavit, letter, notice, instruction, 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.

       Section 18. Change of Rights Agent. The
  Rights Agent or any successor Rights Agent may resign and be discharged from
  its duties under this Agreement upon 30 days’ notice to the Company and
  to each transfer agent of the Common Stock and Preferred Stock, and, after
  the Distribution Date, to the holders of the Right Certificates. The Company
may remove the Rights Agent or any successor

  29

  Rights Agent upon 30 days’ notice to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of the Common Stock and Preferred Stock by registered or certified mail, and, after the
Distribution Date, to the holders of the Right Certificates. If the Rights Agent resigns or is removed or otherwise becomes incapable of acting, the Company shall appoint a successor to the Rights Agent. If the Company fails 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 Person organized, in good standing and doing business under the laws of the United States or of any state of the United States authorized under such laws to exercise stock transfer or
corporate trust 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 $50,000,000
or (b) an Affiliate of a Person described in Section 18(a). 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 with the predecessor Rights Agent and each
transfer agent of the Common Stock and the Preferred Stock, and, subsequent to
the Distribution Date, mail a notice thereof to the registered holders of the
Right Certificates. Failure to give any notice provided for in this Section 18,
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 19. Redemption. (a)
  At any time prior to the occurrence of a Section 8(a)(ii) Event, the Board
  may, at its option, redeem all but not less than all of the then outstanding
  Rights at a redemption price of $.01 per Right, as such amount may be appropriately
  adjusted to reflect any stock split, stock dividend or similar transaction
  occurring after the date hereof (such redemption price being hereinafter referred
  to as the “Redemption Price”). 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 Redemption Price shall
  be payable, at the option of the Company, in cash, shares of Common Stock,
or such other form of consideration as the Board shall determine. 

       (b) Immediately upon the action of the Board electing to redeem the Rights (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 

  30

  

  to exercise the Rights will terminate and thereafter the only right of the holders of Rights shall be to receive the Redemption Price for each Right so held. The Company shall promptly thereafter give notice of such redemption to
the Rights Agent and the holders of the Rights in the manner set forth in Section 22; provided that the failure to give, or any defect in, such notice shall not affect the validity of such
redemption. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption will state the method by which the payment of the Redemption Price will be
made.

       Section 20. Exchange. (a)
  At any time after the occurrence of a Section 8(a)(ii) Event, the Board may,
  at its option, exchange all or part of the then outstanding and exercisable
  Rights (which shall not include Rights that have become null and void pursuant
  to Section 5(e)) for shares of Common Stock at an exchange ratio of one share
  of Common Stock per Right, appropriately adjusted to reflect any stock split,
  stock dividend or similar transaction occurring after the date hereof (such
  exchange ratio being hereinafter referred to as the “Exchange Ratio”).
  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. Notwithstanding the foregoing, (i) the Board shall not be empowered
  to effect such exchange at any time after an Acquiring Person, together with
  all Affiliates and Associates of such Acquiring Person, becomes the Beneficial
  Owner of 50% or more of the shares of Common Stock then outstanding and (ii)
  from and after the occurrence of a Section 10 Event, any Rights that theretofore
  have not been exchanged pursuant to this Section 20(a) shall thereafter be
  exercisable only in accordance with Section 10 and may not be exchanged pursuant
to this Section 20(a).

       (b) Immediately upon the effectiveness of the action of the Board to exchange any Rights pursuant to Section 20(a) (or at such later time as the Board may establish) and without any further action and
without any notice, the right to exercise such Rights will terminate and thereafter the only right 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 thereafter give notice of such exchange to the Rights Agent and the holders of the Rights to be exchanged in the manner set forth in Section 22; provided 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 Rights for shares of Common Stock 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 null and void pursuant to Section 5(e)) held by each holder of Rights.

  31

  

  

       (c) The Company may at its option substitute, and, if there shall not be sufficient shares of Common Stock authorized but not outstanding to permit the exchange of Rights for Common Stock in
accordance with Section 20(a), shall substitute to the extent of such insufficiency, for each share of Common Stock that would otherwise be issuable upon exchange of a Right, a number of one one-hundredths of a share of Preferred Stock such that the
current market price (determined pursuant to Section 8(d)) of such number of one one-hundredths of a share of Preferred Stock is equal to the current market price (determined pursuant to Section 8(d)) of one share of Common Stock as of the date of
such exchange.

       Section 21. Notice of Proposed Actions. (a)
  If the Company proposes, at any time after the Distribution Date, (i) to pay
  any dividend payable in stock of any class or to make any other distribution
  (other than a regular quarterly cash dividend out of earnings or retained earnings
  of the Company) to the holders of Preferred Stock, (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 shares of Preferred Stock), (iv) to effect, or
  permit any of its Subsidiaries to effect, any consolidation, merger or combination
  with any other Person, or to effect any sale or other transfer, in one transaction
  or a series of related transactions, of assets or earning power aggregating
  more than 50% of the assets or earning power of the Company and its Subsidiaries,
  taken as a whole, or (v) to effect the liquidation, dissolution or winding-up
  of the Company, then, in each such case, the Company shall give to each holder
  of a Right, a notice of such proposed action specifying the record date for
  the purposes of any such dividend, distribution or offering of rights or warrants,
  or the date on which any such reclassification, consolidation, merger, combination,
  sale, transfer, liquidation, dissolution or winding-up is to take place and
  the date of participation therein by the holders of 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 Sections 21(a)(i) or 21(a)(ii) above at least 20 days
  prior to the record date for determining holders of the Preferred Stock entitled
  to participate in such dividend, distribution or offering, and in the case
  of any such other action, at least 20 days prior to the date of the taking
  of such proposed action or the date of participation therein by the holders
  of Preferred Stock, whichever shall be earlier. The failure to give notice
  required by this Section or any defect therein shall not affect the legality
or validity of the action taken by the Company or the vote upon any such action.

       (b) If a Section 8(a)(ii) Event or Section 10 Event occurs, then, in any such case, (i) the Company shall as soon as practicable thereafter give to each holder of a Right, in accordance with Section
22, a notice of the occurrence of such event, which shall specify the event and the consequences of the event to holders of Rights under Sections 8(a)(ii) or 10, as the case may be, and (ii) all 

  32

  

  references in Section 21(a) to Preferred Stock shall be deemed thereafter to refer to Common Stock or other capital stock, as the case may be.

       Section 22. Notices. Except as set forth below, all notices, requests and other communications to any party hereunder and to the
holder of any Right shall be in writing unless otherwise expressly specified herein. Notices or demands authorized by this Agreement to be given or made to or on the Company or (subject to Section 18) the Rights Agent shall be sufficiently given or
made if sent by registered or certified mail (postage prepaid) to the addresses set forth below (or such other address as such party specifies in writing to the other party):

       if to the Company, to:

  
    
      Genta Incorporated

      Two Connell Drive

      Berkely Heights,
      NJ 07922

      Attention: Corporate Secretary

      Facsimile Number: 908 464 1701

  

       if to the Rights Agent, to:

  
    
      Mellon Investor Services LLC

      AIM 071-0035

      85 Challenger
      Road – 4th Floor

      Ridgefield
      Park, New Jersey 07660

      Attention: Jim Mabli

    with a copy to:

    
      Mellon Investor Services LLC

      85 Challenger Road

      Ridgefield Park, New Jersey 07660-2108

      Attention:
      General Counsel

  

       Except as otherwise expressly set forth in this Agreement, notices or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Right Certificate
any certificate representing shares of Common Stock is sufficiently given or made if sent by first-class mail (postage prepaid) to each record holder of such Certificate at the address of such holder shown on the registry books of the Company.
Notwithstanding anything in this Agreement to the contrary, prior to the Distribution Date a public filing by the Company with the Securities and Exchange Commission shall constitute sufficient notice to the holders of securities of the Company,
including the Rights, for purposes of this Agreement and no other notice need be given to such holders.

       Section 23. Supplements and Amendments. At any time prior to the occurrence of a Section 8(a)(ii) Event, the Company may, and the
Rights Agent 

33

  

  shall if the Company so directs, supplement or amend any provision of this Agreement in any respect without the approval of any holders of certificates representing shares of Common Stock. At any time after the occurrence of a
Section 8(a)(ii) Event, the Company may, and the Rights Agent shall if the Company so directs, supplement or amend this Agreement without the approval of any holders of Rights; provided, however, that no such supplement or amendment may (a) 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), (b) cause this Agreement again
to become amendable other than in accordance with this sentence or (c) cause
the Rights again to become redeemable. Upon the delivery of a certificate from
the Chairman of the Board, the Chief Executive Officer, the President, any Vice
President or the Secretary of the Company stating that the proposed supplement
or amendment is in compliance with the terms of this Agreement, and if requested
by the Rights Agent, an opinion of counsel, that states that the proposed supplement
or amendment complied with this Section 23, the Rights Agent shall execute such
supplement or amendment. Notwithstanding anything herein to the contrary, the
Rights Agent may, but shall not be obligated to, enter into any supplement or
amendment that affects the Rights Agent’s own rights, duties, obligations
or immunities under this Agreement.

       Section 24. Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent
shall bind and inure to the benefit of their respective successors and assigns hereunder.

       Section 25. Determinations and Actions by the Board, etc. For all purposes of this Agreement, any calculation of the number of shares
of Common Stock outstanding at any particular time, including for purposes of determining the particular percentage of such 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) under the Exchange Act as in effect on the date of this Agreement. The Board shall have the exclusive power and authority to administer this Agreement and to exercise all rights and powers specifically granted to the
Board or to the Company, or as may be necessary or advisable in the administration of this Agreement, including the right and power to (i) interpret the provisions of this Agreement and (ii) make all determinations deemed necessary or advisable for
the administration of this Agreement (including a determination to redeem or exchange or not to redeem or exchange the Rights or to amend the Agreement). All such actions, calculations, interpretations and determinations (including, for purposes of
clause (y) below, all omissions with respect to the foregoing) which are done or made by the Board in good faith shall (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all other parties, and (y)
not subject the Board to any liability to the holders of the Rights. Unless otherwise notified, the Rights Agent shall always be entitled to assume that the Board of Directors of the Company 

  34

  

  acted in good faith and the Rights Agent shall be fully protected and shall incur no liability in reliance thereon.

       Section 26. Benefits of This Agreement. Nothing in this Agreement shall be construed to give to any Person other than the Company, the
Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the certificates representing the shares of Common Stock) any legal or equitable right, remedy or claim under this Agreement; but this Agreement
shall be for the sole and exclusive benefit of the Company, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the certificates representing the shares of Common Stock).

       Section 27. Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or
invalidated.

       Section 28. Governing Law. This Agreement, each Right 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, except that the rights and
obligations of the Rights Agent shall be governed by the law of the State of New York.

       Section 29. Counterparts. This Agreement may be executed in any number of counterparts and each of such counterparts shall for all
purposes be deemed to be an original, and all such counterparts shall together constitute one and the same instrument.

       Section 30. Descriptive Headings. The captions herein are included for convenience of reference only, do not constitute a part of this
Agreement and shall be ignored in the construction and interpretation hereof.

  35

  

  

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

  	 GENTA INCORPORATED
	 	 	 
	By:	 /s/ William P. Keane
	 	

	 	Name:	 William
      P. Keane
	 	Title:	   Senior
                Vice President,

Chief Financial Officer and

Corporate Secretary

  	 MELLON INVESTOR SERVICES LLC
	 	 	 
	By:	 /s/ Gary R. Dalessandro
	 	

	 	Name:	 Gary
      R. Dalessandro
	 	Title:	 Vice
      President

  EXHIBIT A

  FORM OF

CERTIFICATE OF DESIGNATION

OF

SERIES G PARTICIPATING CUMULATIVE

PREFERRED
STOCK

  OF

  

  GENTA INCORPORATED

  Pursuant to Section 151 of the

General Corporation Law
of the

State of Delaware

       I, _______________,
  [Title], of Genta Incorporated, a corporation organized and existing under
  the General Corporation Law of the State of Delaware (“Delaware
Law”), in accordance with the provisions thereof, HEREBY CERTIFY that
pursuant to the authority conferred upon the Board of Directors by the Certificate
of Incorporation of the Corporation, the Board of Directors on September 15,
2005, adopted the following resolution creating a series of Preferred Stock in
the amount and having the designation, voting powers, preferences and relative,
participating, optional and other special rights and qualifications, limitations
and restrictions thereof as follows:

       Section 1. Designation and Number of Shares.
  The shares of such series shall be designated as “Series G Participating Cumulative
Preferred Stock” (the “Series G Preferred Stock”), and
the number of shares constituting such series shall be 2,000,000. Such number
of shares of the Series G Preferred Stock may be increased or decreased by resolution
of the Board of Directors; provided that no decrease shall reduce the number of shares of Series G Preferred Stock to a number less than the
number of shares then outstanding plus the number of shares issuable upon exercise or conversion of outstanding rights, options or other securities issued by the Corporation.

       Section 2. Dividends and Distributions.
  (a) The holders of shares of Series G Preferred Stock shall be entitled to
  receive, when, as and if declared by the Board of Directors out of funds legally
  available for the purpose, quarterly dividends payable on March 31, June 30,
  September 30 and December 31 of each year (each such date being referred to
  herein as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of any share or fraction of a share of Series G Preferred Stock, in an amount per
share (rounded to the nearest cent) equal to the greater of (i) $1.00 and

  (ii) subject to the provision for adjustment hereinafter
  set forth, 100 times the aggregate per share amount of all cash dividends or
  other distributions and 100 times the aggregate per share amount of all non-cash
  dividends or other distributions (other than (A) a dividend payable in shares
  of Common Stock, par value $0.001 per share, of the Corporation (the “Common Stock”)
  or (B) a subdivision of the outstanding shares of Common Stock (by reclassification
  or otherwise)), declared on the Common Stock since the immediately preceding
  Quarterly Dividend Payment Date, or, with respect to the first Quarterly Dividend
  Payment Date, since the first issuance of any share or fraction of a share
  of Series G Preferred Stock. If the Corporation, at any time after September
  15, 2005 (the “Rights Declaration Date”), pays any
dividend on Common Stock payable in shares of Common Stock or effects a subdivision
  or combination of the outstanding shares of Common Stock (by reclassification
  or otherwise) into a greater or lesser number of shares of Common Stock, then
  in each such case the amount to which holders of shares of Series G Preferred
  Stock were entitled immediately prior to such event under Section 2(a)(ii)
  of the preceding sentence shall be adjusted by multiplying such amount by a
  fraction the numerator of which is the number of shares of Common Stock outstanding
  immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

        (b) The Corporation shall declare a dividend or distribution on the Series G Preferred Stock as provided in Section 2(a) above immediately after it declares a dividend or distribution on the Common
    Stock (other than as described in Sections 2(a)(ii)(A) and 2(a)(ii)(B) above); provided that
    if no dividend or distribution shall have been declared on the Common Stock
    during the period between any Quarterly Dividend Payment Date and the next
    subsequent Quarterly Dividend Payment Date (or, with respect to the first
    Quarterly Dividend Payment Date, the period between the first issuance of
    any share or fraction of a share of Series G Preferred Stock and such first
    Quarterly Dividend Payment Date), a dividend of $1.00 per share on the
    Series G Preferred Stock shall nevertheless be payable on such subsequent
    Quarterly Dividend Payment Date.

        (c) Dividends shall begin to accrue and be cumulative on outstanding shares of Series G Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issuance of such shares of
    Series G Preferred Stock, unless the date of issuance of such shares is on or before the record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to accrue and be cumulative from the date of issue
    of such shares, or unless the date of issue is a date after the record date for the determination of holders of shares of Series G Preferred Stock entitled to receive a quarterly dividend and on or before such Quarterly Dividend Payment Date, in
    which case dividends shall begin to accrue and be cumulative from such Quarterly 

A-2

  

  

  
    Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on shares of Series G Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such
    shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Series G Preferred Stock entitled to receive
    payment of a dividend or distribution declared thereon, which record date shall not be more than 60 days prior to the date fixed for the payment thereof.

       Section 3. Voting Rights. In addition to any other voting rights required by law, the holders of shares of Series G Preferred Stock shall
have the following voting rights:

        (a) Subject to the provision for adjustment hereinafter set forth, each share of Series G Preferred Stock shall entitle the holder thereof to 100 votes on all matters submitted to a vote of
    stockholders of the Corporation. If the Corporation shall at any time after the Rights Declaration Date pay any dividend on Common Stock payable in shares of Common Stock or effect a subdivision or combination of the outstanding shares of Common
    Stock (by reclassification or otherwise) into a greater or lesser number of shares of Common Stock, then in each such case the number of votes per share to which holders of shares of Series G Preferred Stock were entitled immediately prior to such
    event shall be adjusted by multiplying such number by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were
    outstanding immediately prior to such event.

        (b) Except as otherwise provided herein or by law, the holders of shares of Series G Preferred Stock and the holders of shares of Common Stock shall vote together as a single class on all matters
    submitted to a vote of stockholders of the Corporation.

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

A-3

  

  
          (ii) During any default period, such voting right of the holders of Series G Preferred Stock may be exercised initially at a special meeting called pursuant to Section 3(c)(iii) hereof or at any
      annual meeting of stockholders, and thereafter at annual meetings of stockholders; provided that neither such voting right nor the right of the holders of any other series of Preferred
      Stock, if any, to increase, in certain cases, the authorized number of Directors shall be exercised unless the holders of 10% in number of shares of Preferred Stock outstanding shall be present in person or by proxy. The absence of a quorum of
      holders of Common Stock shall not affect the exercise by holders of Preferred Stock of such voting right. At any meeting at which holders of Preferred Stock shall initially exercise such voting right, they shall have the right, voting as a class, to
      elect Directors to fill such vacancies, if any, in the Board of Directors as may then exist up to two Directors or, if such right is exercised at an annual meeting, to elect two Directors. If the number which may be so elected at any special meeting
      does not amount to the required number, the holders of the Preferred Stock shall have the right to make such increase in the number of Directors as shall be necessary to permit the election by them of the required number. After the holders of the
      Preferred Stock shall have exercised their right to elect Directors in any default period and during the continuance of such period, the number of Directors shall not be increased or decreased except by vote of the holders of Preferred Stock as
      herein provided or pursuant to the rights of any equity securities ranking senior to or pari passu with the Series G Preferred Stock.

          (iii) Unless the holders of Preferred Stock shall have previously exercised their right to elect Directors during an existing default period, the Board of Directors may order, or any stockholder or
      stockholders owning in the aggregate not less than 10% of the total number of shares of Preferred Stock outstanding, irrespective of series, may request, the calling of a special meeting of holders of Preferred Stock, which meeting shall thereupon
      be called by the President, a Vice President or the Secretary of the Corporation. Notice of such meeting and of any annual meeting at which holders of Preferred Stock are entitled to vote pursuant to this Section 3(c)(iii) shall be given to each
      holder of record of Preferred Stock by mailing such notice to him at the address of such holder shown on the registry books of the Corporation. Such meeting shall be called for a time not earlier than 20 days and not later than 60 days after such
      order or request or in default of the calling of such meeting within 60 days after such order or request, such meeting may be called on similar 

  

A-4

  

  
    
      notice by any stockholder or stockholders owning
      in the aggregate not less than 10% of the total number of shares of Preferred
      Stock outstanding, irrespective of series. Notwithstanding the provisions
      of this Section 3(c)(iii), no such special meeting shall be called during
      the period within 60 days immediately preceding the date fixed for the
      next annual meeting of stockholders.

          (iv) In any default period, the holders of Common Stock, and other classes of stock of the Corporation if applicable, shall continue to be entitled to elect the whole number of Directors until the
      holders of Preferred Stock shall have exercised their right to elect two Directors voting as a class, after the exercise of which right (x) the Directors so elected by the holders of Preferred Stock shall continue in office until their successors
      shall have been elected by such holders or until the expiration of the default period, and (y) any vacancy in the Board of Directors may (except as provided in Section 3(c)(ii) hereof) be filled by vote of a majority of the remaining Directors
      theretofore elected by the holders of the class of stock which elected the Director whose office shall have become vacant. References in this Section 3(c) to Directors elected by the holders of a particular class of stock shall include Directors
      elected by such Directors to fill vacancies as provided in clause (y) of the foregoing sentence.

          (v) Immediately upon the expiration of a default period, (x) the right of the holders of Preferred Stock as a class to elect Directors shall cease, (y) the term of any Directors elected by the holders
      of Preferred Stock as a class shall terminate, and (z) the number of Directors shall be such number as may be provided for in the certificate of incorporation or bylaws irrespective of any increase made pursuant to the provisions of Section 3(c)(ii)
      (such number being subject, however, to change thereafter in any manner provided by law or in the certificate of incorporation or bylaws). Any vacancies in the Board of Directors effected by the provisions of clauses (y) and (z) in the preceding
      sentence may be filled by a majority of the remaining Directors.

  

        (d) The Certificate of Incorporation of the Corporation shall not be amended in any manner (whether by merger or otherwise) so as to adversely affect the powers, preferences or special rights of the
  Series G Preferred Stock without the affirmative vote of the holders of a majority of the outstanding shares of Series G Preferred Stock, voting separately as a class.

A-5

  

        (e) Except as otherwise provided herein, holders of Series G Preferred Stock shall have no special voting rights, and their consent shall not be required for taking any corporate action.

       Section 4. Certain Restrictions. (a) Whenever quarterly dividends or other dividends or distributions payable on the Series G Preferred Stock
as provided in Section 2 are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on outstanding shares of Series G Preferred Stock shall have been paid in full, the Corporation shall
not:

    
            (i) declare or pay dividends on, or make any other distributions on, any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding-up) to the Series G
      Preferred Stock;

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

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

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

    

        (b) The Corporation shall
  not permit any subsidiary of the Corporation to purchase or otherwise acquire
  for value any shares of stock

A-6

  
    of the Corporation unless the Corporation could, under paragraph 4(a), purchase or otherwise acquire such shares at such time and in such manner.

       Section 5. Reacquired Shares. Any shares of Series G Preferred Stock redeemed, purchased or otherwise acquired by the Corporation in any
manner whatsoever shall be retired and cancelled promptly after the acquisition thereof. All such shares shall upon their cancellation become authorized but unissued shares of Preferred Stock without designation as to series and may be reissued as
part of a new series of Preferred Stock to be created by the Board of Directors as permitted by the Certificate of Incorporation or as otherwise permitted under Delaware Law.

       Section 6. Liquidation, Dissolution and Winding-up.
  Upon any liquidation, dissolution or winding-up of the Corporation, no distribution
  shall be made (a) to the holders of shares of stock ranking junior (either
  as to dividends or upon liquidation, dissolution or winding-up) to the Series
  G Preferred Stock unless, prior thereto, the holders of shares of Series G
  Preferred Stock shall have received $1.00 per share, plus an amount equal
  to accrued and unpaid dividends and distributions thereon, whether or not declared,
  to the date of such payment; provided that the holders
of shares of Series G Preferred Stock shall be entitled to receive an aggregate amount per share, subject to the provision for adjustment hereinafter set forth, equal to 100 times the aggregate amount to be distributed per share to holders of Common
Stock, or (b) to the holders of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding-up) with the Series G Preferred Stock, except distributions made ratably on the Series G Preferred Stock and all such other
parity stock in proportion to the total amounts to which the holders of all such shares are entitled upon such liquidation, dissolution or winding-up. If the Corporation shall at any time after the Rights Declaration Date pay any dividend on Common
Stock payable in shares of Common Stock or effect a subdivision or combination of the outstanding shares of Common Stock (by reclassification or otherwise) into a greater or lesser number of shares of Common Stock, then in each such case the
aggregate amount to which holders of shares of Series G Preferred Stock were entitled immediately prior to such event under the proviso in clause (a) of the preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator
of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

       Section 7. Consolidation,
Merger, etc. If the Corporation shall enter
into any consolidation, merger, combination or other transaction in  which the
shares of Common Stock are exchanged for or changed into other stock or securities,
cash or any other property, then in any such case the shares of Series G Preferred
Stock shall at the same time be similarly exchanged for or changed into  an amount
per share, subject to the provision for adjustment hereinafter set forth, equal
to 100 times the aggregate amount of stock, securities, cash or any other property,
as the

A-7

  case may be, into which or for which each share of Common Stock is changed or exchanged. If the Corporation shall at any time after the Rights Declaration Date pay any dividend on Common Stock payable in shares of Common Stock or
effect a subdivision or combination of the outstanding shares of Common Stock (by reclassification or otherwise) into a greater or lesser number of shares of Common Stock, then in each such case the amount set forth in the preceding sentence with
respect to the exchange or change of shares of Series G Preferred Stock shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

       Section 8. No Redemption. The Series G Preferred Stock shall not be redeemable.

       Section 9. Rank.
  The Series G Preferred Stock shall rank junior (as to dividends and upon liquidation,
  dissolution and winding-up) to all other series of the Corporation’s preferred
  stock except any series that specifically provides that such series shall rank
junior to the Series G Preferred Stock.

       Section 10. Fractional Shares.
  Series G Preferred Stock may be issued in fractions of a share which shall
  entitle the holder, in proportion to such holder’s fractional shares,
  to exercise voting rights, receive dividends, participate in distributions
  and to have the benefit of all other rights of holders of Series G Preferred
Stock.

  A-8

  

  

       IN WITNESS WHEREOF, we
have executed and subscribed this Certificate this __ day of ________, 2005.

  	 	 
	 	

	 	Name:	 
	 	Title:	 

	Attest:
	 
	 
	

	Name:
	Title:

  

 

  EXHIBIT B

  AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS ISSUED OR TRANSFERRED TO, OR HELD BY, ANY PERSON WHO IS, WAS OR BECOMES AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT),
WHETHER CURRENTLY HELD BY OR ON BEHALF OF SUCH PERSON OR BY ANY SUBSEQUENT HOLDER, MAY BE NULL AND VOID.

  SUMMARY OF TERMS

  GENTA INCORPORATED

  STOCKHOLDER RIGHTS PLAN

 

	Form of Security 	The
        Board of Directors has declared a dividend of one preferred stock purchase
        right for each outstanding share of the Company’s Common Stock,
        payable to holders of record as of the close of business on September
        27, 2005 (each a “Right” and
    collectively, the “Rights”).

 

	Issuance of Right

    Certificates; Transfer    	Prior
        to the Distribution Date1,
        (i) the Rights will be evidenced by the certificates
        for the common stock, par value $0.001 per share (“Common
        Stock”) of the Company and
        not separate certificates evidencing the Rights (a “Right
        Certificate”), and the registered
        holders of the Common Stock shall be deemed to be the registered holders
        of the associated Rights; and (ii) the Rights will be transferable only
    in connection with the transfer of the underlying shares of Common Stock.
	 	 
	 	 After the Distribution Date, the
        Rights Agent will mail separate Right Certificates to each record holder
        of the Common Stock as of the close of business on the Distribution Date,
        and thereafter the Rights will be transferable separately from the Common
    Stock.
	 	 
	Exercise 	 Prior
    to the Distribution Date, the Rights are not exercisable.
	 	 
	 	After the Distribution Date, but prior to the
        occurrence of an event described below under “Flip-In” or “Flip-Over”,
        each Right shall be exercisable to purchase, for $25.00, subject
        to adjustment (the “Purchase
        Price”), one one-hundredth
        of a share of Series G Participating Cumulative Preferred Stock, par
    value $0.001 per share, of the Company.
	 	 

 

	

	 	  1 Distribution
    Date generally means the earlier of: 
	 	 	 
	 	
  (1)	
      the 10th day after public announcement that any person or group has become an Acquiring Person (as defined below), and	
	 	 	 
	 	
  (2)	
      the 10th business day after the date of the commencement of a tender or exchange offer by any person which would, if consummated, result in such person becoming an Acquiring Person.	

B-2

  

 

	Acquiring Person 	Subject
        to certain exceptions, an “Acquiring
        Person” is any person or group
        who becomes the beneficial owner of 15% or more of the Common Stock.
        The exceptions include: (i) the Company’s
        employee benefit plans, (ii) any person that the Company’s Board
        of Directors determines exceeded the threshold inadvertently and then
        promptly divests the excess shares and (iii) any person who becomes an
        Acquiring Person because the Company repurchases outstanding shares of
        Common Stock unless such person acquires additional shares of Common
    Stock.
	 	 
	Flip-In 	 If
        any person or group becomes an Acquiring Person, then each Right (other
        than Rights beneficially owned by the Acquiring Person and certain affiliated
        persons) will entitle the holder to purchase, for the Purchase Price,
        a number of shares of the Company’s Common Stock having a market
    value of twice the Purchase Price.
	 	 
	Flip-Over 	 If,
        after any person or group becomes an Acquiring Person, (1) the Company
        is involved in a merger or other business combination in which the Company
        is not the surviving corporation or its Common Stock is exchanged for
        other securities or assets or (2) the Company and/or one or more of its
        subsidiaries sell or otherwise transfer assets or earning power aggregating
        more than 50% of the assets or earning power of the Company and its subsidiaries,
        taken as a whole, then each Right will entitle the holder to purchase,
        for the Purchase Price, a number of shares of common stock of the other
        party to such business combination or sale (or in certain circumstances,
    an affiliate) having a market value of twice the Purchase Price.
	 	 

B-3

  

	Exchange 	At
        any time after any person becomes an Acquiring Person (but before any
        person becomes the beneficial owner of 50% or more of the Company’s
        Common Stock or the occurrence of a merger, combination, sale or transfer
        described in “Flip-Over” above), the Board of Directors may
        exchange all or part of the Rights (other than the Rights beneficially
        owned by the Acquiring Person and certain affiliated persons) for shares
        of Common Stock at an exchange ratio of one share of Common Stock per
    Right.
	 	 
	Redemption 	 The
        Board of Directors may redeem all of the Rights at a price of $.01
        per Right at any time prior to the time that any person becomes an Acquiring
    Person.
	 	 
	Expiration 	 The
        Rights will expire on September 15, 2015, unless earlier exchanged or
    redeemed.
	 	 
	Amendments 	 Prior
        to any person becoming an Acquiring Person, the Rights Agreement may
    be amended in any respect.
	 	 
	 	 After any person has become an Acquiring Person,
        the Rights Agreement may not be amended in any respect that would adversely
        affect the Rights holders (other than any Acquiring Person and certain
    affiliated persons) or cause the Rights again to become redeemable.
	 	 
	Voting Rights 	Rights
        holders have no stockholder rights, including no right to vote or to
    receive dividends.
	 	 
	Antidilution Provisions 	 The
        Rights Agreement includes standard antidilution provisions designed to
    protect the efficacy of the Rights.
	 	 
	Taxes 	 While
        the dividend of the Rights will not be taxable to stockholders or to
        the Company, stockholders or the Company may, depending upon the circumstances,
    recognize taxable income in the event that the Rights become exercisable.

B-4

  

A copy of the Rights Agreement has been filed with the Securities and Exchange Commission as an Exhibit to a Registration Statement on Form 8-A. A copy of the Rights Agreement is available free of charge from the Company. This
summary description of the Rights does not purport to be complete and is qualified in its entirety by reference to the Rights Agreement, as amended from time to time, the complete terms of which are hereby incorporated by reference.

 

  B-5

  

  

  EXHIBIT C

  [FORM OF RIGHT CERTIFICATE]

	No. R -	 [Number of] Rights

NOT EXERCISABLE AFTER THE EARLIER OF SEPTEMBER 15,
    2015 AND THE DATE ON WHICH THE RIGHTS EVIDENCED HEREBY ARE REDEEMED OR EXCHANGED
    BY THE COMPANY AS SET FORTH IN THE RIGHTS AGREEMENT. AS SET FORTH IN THE
    RIGHTS AGREEMENT, RIGHTS ISSUED TO, OR HELD BY, ANY PERSON WHO IS, WAS OR
    BECOMES AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE THEREOF (AS SUCH
    TERMS ARE DEFINED IN THE RIGHTS AGREEMENT), WHETHER CURRENTLY HELD BY OR
ON BEHALF OF SUCH PERSON OR BY ANY SUBSEQUENT HOLDER, MAY BE NULL AND VOID.

  RIGHT CERTIFICATE

  GENTA INCORPORATED

       This Right
  Certificate certifies that ______________________, or registered assigns, is
  the registered holder of the number of Rights set forth above, each of which
  entitles the holder (upon the terms and subject to the conditions set forth
  in the Rights Agreement dated as of September 20, 2005 (the “Rights
Agreement”) between Genta Incorporated,
a Delaware corporation  (the “Company”),
and Mellon Investor Services LLC (the “Rights
Agent”))
to purchase from the Company, at any time after the Distribution Date and prior
to the Expiration Date, ______________  one-hundredth[s] of a fully paid, nonassessable
share of Series G Participating Cumulative Preferred Stock (the “Preferred
 Stock”) of the Company at a purchase
 price of $25.00 per one one-hundredth of a share (the “Purchase
 Price”), payable in lawful money of
 the  United States of America, upon surrender of this Right Certificate, with
 the form of election to purchase and related certificate duly executed, and
 payment of the Purchase Price at an office of the Rights Agent designated for
 such  purpose.

       Terms used herein and not otherwise defined herein shall have the meanings given to them in the Rights Agreement.

       The number of Rights
evidenced by this Right Certificate (and the number and kind of shares issuable
upon exercise of each Right) and the Purchase Price set forth above are as of
____________,
20__, and may have been or in the future be adjusted as a result of the occurrence
of certain events, as more fully provided in the Rights Agreement.

       Upon the first occurrence of a Section 8(a)(ii) Event, if the Rights evidenced by this Right Certificate are beneficially owned by (a) an Acquiring 

C-1

  

  Person or an Associate or Affiliate of such Acquiring Person, (b) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who (i) becomes a transferee after a Section 8(a)(ii) Event, (ii) becomes a transferee
prior to or concurrently with a Section 8(a)(ii) Event and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person (or any such Associate or Affiliate) to holders of equity interests in
such Acquiring Person (or in any Associate or Affiliate) or to any Person with whom the Acquiring Person (or any such Associate or Affiliate) has any continuing agreement, arrangement or understanding regarding the transferred Rights or (B) a
transfer which is part of a plan, arrangement or understanding which has as a primary purpose or effect the avoidance of these transfer restrictions, such Rights shall become null and void without any further action, and no holder hereof shall have
any rights whatsoever with respect to such Rights.

       This Right Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by reference and made a
part hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Right Certificates,
which limitations of rights include the temporary suspension of the exercisability of such Rights under the specific circumstances set forth in the Rights Agreement.

       At any time after the Distribution Date and prior to the Expiration Date, any Right Certificate or Certificates may, upon the terms and subject to the conditions set forth below in the Rights
Agreement, be transferred or exchanged for another Right Certificate or Certificates evidencing a like number of Rights as the Right Certificate or Certificates surrendered. Any registered holder desiring to transfer or exchange any Right
Certificate or Certificates shall surrender such Right Certificate or Certificates (with, in the case of a transfer, the form of assignment and certificate on the reverse side thereof duly executed) to the Rights Agent at the office of the Rights
Agent designated for such purpose.

       Subject to the provisions of the Rights Agreement, the Board of Directors of the Company may, at its option,

        (a) at
        any time prior to the occurrence of a Section 8(a)(ii) Event redeem all
        but not less than all of the then outstanding Rights at a redemption
        price of $.01 per Right as such amount may be
    appropriately adjusted to reflect any stock split, stock dividend or similar
    transaction occurring after the date of the Rights Agreement; or

        (b) at any time after the occurrence of a Section 8(a)(ii) Event exchange all or part of the then outstanding Rights (which shall not include Rights that have become void pursuant to Section 5(e)) for
    shares of Common Stock at an exchange ratio of one share of Common Stock per Right appropriately adjusted to reflect any stock split, stock dividend or

  C-2

  

  

  
    similar transaction occurring after the date of the Rights Agreement. If the Rights shall be exchanged in part, the holder of this Right Certificate shall be entitled to receive upon surrender hereof another Right Certificate or
    Certificates for the number of whole Rights not exchanged.

       The Company shall not be required to issue fractions of shares of Preferred Stock (other than fractions which are multiples of one one-hundredth of a share of Preferred Stock) upon the exercise of the
Rights or to distribute certificates which evidence fractional shares of Preferred Stock (other than fractions which are multiples of one one-hundredth of a share of Preferred Stock). In lieu of any such fractional shares of Preferred Stock, the
Company shall pay to the registered holders of Right Certificates at the time such Rights are exercised an amount in cash equal to the same fraction of the current market price of one one-hundredth of a share of Preferred Stock. If this Right
Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another Right Certificate or Certificates for the number of whole Rights not exercised.

       No holder of this Right Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the holder of the shares of capital stock which may at any time be issuable on the
exercise hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company (including 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, to receive notice of meetings or other actions affecting stockholders (except as provided in the Rights Agreement), to receive
dividends or subscription rights, or otherwise) until the Right or Rights evidenced by this Right Certificate shall have been exercised as provided in the Rights Agreement.

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

C-3

  

  

       IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal by its authorized officers.

  Dated as of  _____________________, 20__

  	 GENTA INCORPORATED
	 	 	 
	By:	 
	 	

	 	Name:	 
	 	Title:	 

  	 [SEAL]
	 
	 Attest:
	 	 	 
	 	 
	 	

	 	Name:	 
	 	Title:	 Secretary

  

  

  
  	 Countersigned:
	 
	  MELLON
            INVESTOR SERVICES LLC,

as Rights Agent
	 	 	 
	By:	 
	 	

	 	Name:	 
	 	Title:	 

  

  

  

  

  Form of Reverse Side of Right Certificate

  FORM OF ASSIGNMENT

  (To be executed if the registered holder

desires to
transfer the Right Certificate.)

  	FOR VALUE RECEIVED _____________________________________________________________________________
	hereby sells, assigns and transfers unto ______________________________________________________________________
	______________________________________________________________________________________________
	(Please print name and address of transferee)
	 
	______________________________________________________________________________________________
	 
	 this Right Certificate, together with all
          right, title and interest therein, and does hereby irrevocably constitute
          and appoint ______________________ Attorney, to transfer the within
          Right Certificate on the books of the within-named Company, with full
      power of substitution.
	 
	 Dated: _____________________, 20__

  	 
	 
	

	Signature

  	 
	Signature Guaranteed:

 

  CERTIFICATE

  The undersigned hereby certifies by checking the appropriate boxes that:

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

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

	 	 
	 	 
	Dated: __________, 20 __	

	 	Signature

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

  FORM OF ELECTION TO PURCHASE

  (To be executed if the registered holder desires to
exercise Rights

represented by the Right Certificate.)

  	To: Genta Incorporated
	 
	      The undersigned
          hereby irrevocably elects to exercise ____________ Rights represented
          by this Right Certificate to purchase shares of Preferred Stock issuable
          upon the exercise of the Rights (or such other securities of the Company
          or of any other person which may be issuable upon the exercise of the
          Rights) and requests that certificates for such securities be issued
      in the name of and delivered to:
	 
	 Please insert social security or other identifying
      number ___________________________________________________________
	____________________________________________________________________________________________
	 (Please print name and address)
	 
	____________________________________________________________________________________________
	 
	      If such number
          of Rights shall not be all the Rights evidenced by this Right Certificate,
          a new Right Certificate for the balance of such Rights shall be registered
      in the name of and delivered to:
	 
	 Please insert social security or other identifying
          number ___________________________________________________________
	____________________________________________________________________________________________
	 (Please print name and address)
	 
	____________________________________________________________________________________________
	 
	 Dated: __________________, 20__
	 

  	 
	 
	

	Signature

  	 
	Signature Guaranteed:

 

  CERTIFICATE

  The undersigned hereby certifies by checking the appropriate boxes that:

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

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

	 	 
	 	 
	Dated: __________, 20 __	 
	 	

	 	Signature

  The signature to the foregoing Election to Purchase and Certificate must correspond to the name as written upon the face of this Right Certificate in every particular, without alteration or enlargement or any change
whatsoever.<PAGE>
                                                                 Exhibit 10.42.3

                        SECOND AMENDMENT TO MASTER LEASE

      THIS SECOND AMENDMENT TO MASTER LEASE (the "SECOND AMENDMENT") is made as
of June 28, 2005 by and among ALTERRA HEALTHCARE CORPORATION, a Delaware
corporation ("TENANT") and NATIONWIDE HEALTH PROPERTIES, INC., a Maryland
corporation, NH TEXAS PROPERTIES LIMITED PARTNERSHIP, a Texas limited
partnership, MLD DELAWARE TRUST, a Delaware business trust, MLD PROPERTIES, LLC,
a Delaware limited liability company, NHP SILVERWOOD INVESTMENTS, INC., a Nevada
corporation, and NHP WESTWOOD INVESTMENTS, INC., a Nevada corporation
(collectively, "LANDLORD").

                                R E C I T A L S:

      A. Landlord and Tenant have entered into that certain Master Lease dated
as of April 9, 2002, as amended by that certain First Amendment to Master Lease
and Consent to Transfer dated as of December 2, 2003 (as amended, the "MASTER
LEASE"), pursuant to which Landlord leases to Tenant the Premises described
therein. Initially capitalized terms used but not otherwise defined in this
Second Amendment shall have the meanings given to them in the Master Lease.

      B. Landlord and Tenant now desire to further amend the Master Lease in
order to (i) evidence Tenant's agreement to complete $3,000,000 in capital
improvements to the Premises, and (ii) provide Tenant with an option to purchase
the Facility known as Canterbury Gardens which is located in Aurora, Colorado,
all under the terms and conditions set forth in this Second Amendment.

                                A G R E E M E N T

      NOW, THEREFORE, taking into account the foregoing Recitals, and in
consideration of the mutual covenants and agreements contained herein, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

      1.    AMENDMENTS TO MASTER LEASE.

            (a)   The following is hereby added as Section 8.3(c) of the Master
                  Lease:

      "(c) Notwithstanding any other provisions of this Master Lease and in
      addition to the Upgrade Expenditures to be made by Tenant pursuant to
      Section 8.3(a) hereof, Tenant hereby covenants and agrees to complete, at
      Tenant's sole cost and expense, a minimum of Three Million Dollars
      ($3,000,000) in capital improvements to the Facility known as Canterbury
      Gardens and located at 11265 Mississippi Avenue, Aurora, Colorado (the
      "CANTERBURY FACILITY") prior to June 30, 2006 (the "CANTERBURY
      IMPROVEMENTS"). Tenant shall submit to Landlord a written capital
      improvements spending plan, describing the proposed capital improvements
      for the Canterbury Facility. Landlord shall promptly review the plan and
      approve or explain to Tenant the reasonable grounds for its disapproval of
      the proposed capital improvements within twenty (20) days of receipt of
      the plan; provided, however, that Landlord's approval shall not be
      required for capital improvements for replacement equipment and emergency
      items or capital improvements which cost less than Fifty Thousand Dollars
      ($50,000). Thereafter, Tenant shall complete the various capital
      improvements in accordance with the approved plan and shall, within thirty
      (30) days following the expiration of each calendar quarter, deliver
      reasonably detailed reports to Landlord describing the capital
      improvements completed by Tenant during such calendar quarter and the
      amount expended by Tenant therefore. All work done in connection with the
      various capital improvements shall be done in a good and workmanlike
      manner and in material compliance with all existing codes and regulations
      pertaining to the Canterbury Facility and shall comply with the
      requirements of insurance policies required under this Master Lease."

                                       1
<PAGE>
            (b)   The following is hereby added as Section 28 of the Master
                  Lease:

      "28. CANTERBURY OPTION TO PURCHASE. Provided that Tenant has completed the
      Canterbury Improvements as required in Section 8.3(c) and no Event of
      Default exists on the Option Exercise Date or the closing date following
      the Option Exercise Date, Landlord hereby grants to Tenant an option to
      purchase the Canterbury Facility, which option may be exercised by Tenant
      at any time during the period commencing January 1, 2008 and continuing
      through the remainder of the Term (the "OPTION PERIOD"). In the event
      Tenant wishes to exercise the Option, Tenant shall give Landlord written
      notice at any time during the Option Period (a "OPTION EXERCISE NOTICE")
      thereof on a date (the "OPTION EXERCISE DATE") that is at least six (6)
      months but no more than one (1) year prior to the anticipated closing date
      for the consummation of such purchase. The purchase price for the
      Canterbury Facility shall be Seven Million Dollars ($7,000,000), as
      increased from and after January 1, 2008 by the rate of two and one-half
      percent (2'/s%) per annum, compounded annually (the "PURCHASE PRICE").
      Within ten (10) days of Tenant's delivery of the Option Exercise Notice,
      the parties shall sign the standard sale escrow instructions (the "SALE
      INSTRUCTIONS") of a national title company (selected by Tenant) that are
      in form and substance reasonably satisfactory to Landlord and Tenant,
      which Sale Instructions shall provide (a) for no representations or
      warranties (other than a representation and warranty by Landlord that
      Landlord has not encumbered title to the Canterbury Facility), due
      diligence or other contingencies in favor of Tenant; (b) that Tenant shall
      deposit FIVE PERCENT (5%) of the Purchase Price with the title company,
      which may be retained by Landlord as liquidated damages solely for any
      breach by Tenant of the terms of this Section 28 or the Sale Instructions
      (and which in no way shall liquidate or limit Landlord's damages by reason
      of any breach of this Master Lease other than as a result of a breach
      under this Section 28 or the Sale Instructions); (c) that the escrow shall
      close on the date identified in the Option Exercise Notice, at which time
      Tenant shall pay the Purchase Price in cash and Landlord shall deliver
      title to the Canterbury Facility, subject only to the applicable Permitted
      Exceptions (which shall not include any encumbrances created by, through
      or under Landlord other than as requested by Tenant in writing during the
      term); and (d) that Tenant shall pay all transaction costs. If Tenant
      fails to close the escrow for the purchase of the Canterbury Facility for
      any reason other than a breach by Landlord, then no Event of Default shall
      arise solely as a result of such failure, but the rights granted to Tenant
      under this Section 28 with respect to the Canterbury Facility shall
      automatically terminate and be of no further force or effect. Concurrently
      with the closing of the sale of the Canterbury Facility, (i) the Minimum
      Rent shall be reduced by the product of (x) the Purchase Price, and (y)
      ten percent (10.00%); and (b) Landlord's Investment shall be reduced by
      the amount of the Purchase Price received by Landlord in connection with
      the sale."

      2. REAFFIRMATION OF OBLIGATIONS. Notwithstanding the modifications to the
Master Lease contained herein, Tenant and Landlord each hereby acknowledges and
reaffirms their respective obligations under the Master Lease (as modified
hereby) and all other documents executed by such party in connection therewith.
Except as specifically amended pursuant to the terms of this Second Amendment,
the terms and conditions of the Master Lease shall remain unmodified and in full
force and effect. In the event of any inconsistencies between the terms of this
Second Amendment and any terms of the Master Lease, the terms of this Second
Amendment shall govern and prevail.

      3. FURTHER INSTRUMENTS. Each of the undersigned will, whenever and as
often as it shall be reasonably requested so to do by another party, take all
actions reasonably required and shall cause to be executed, acknowledged or
delivered, any and all such further instruments and documents as may be
necessary or proper, in the reasonable opinion of the requesting party, in order
to carry out the intent and purpose of this Second Amendment.

      4. INCORPORATION OF RECITALS. The Recitals to this Second Amendment are
incorporated hereby by reference.

                                       2
<PAGE>
      5. ATTORNEYS' FEES. In the event of any dispute or litigation concerning
the enforcement, validity or interpretation of this Second Amendment, or any
part thereof, the losing party shall pay all costs, charges, fees and expenses
(including reasonable attorneys' fees) paid or incurred by the prevailing party,
regardless of whether any action or proceeding is initiated relative to such
dispute and regardless of whether any such litigation is prosecuted to judgment.

      6. MISCELLANEOUS. This Second Amendment contains the entire agreement
between the parties relating to the subject matters contained herein. Any prior
representations or statements concerning the subject matters herein shall be of
no force or effect. This Second Amendment shall be construed as a whole and in
accordance with its fair meaning. Headings are for convenience only and shall
not be used in construing meaning. This Second Amendment shall be governed by
and construed in accordance with the internal laws of the State of California
without regard to rules concerning the choice of law provided that the laws of
the State of Colorado shall govern procedures for enforcing provisions and other
remedies related to the Canterbury Facility. This Second Amendment may be
executed in multiple counterparts and in original or by facsimile, each of which
constitute an original, but all of which taken together shall constitute but one
in the same document.

                            [SIGNATURES ON NEXT PAGE]

                                       3
<PAGE>
      WITNESS WHEREOF, the parties have executed this Second Amendment as of the
date first above written.

TENANT:

ALTERRA HEALTHCARE CORPORATION,
a Delaware corporation

By:      /s/ Mark Ohlendorf
         -----------------------------------
Name:    Mark W. Ohlendorf
         ---------------------------
Title:   President
         -----------------------------------

Witness:        /s/ Illegible               Witness:        /s/ J.C. Hansen
         ---------------------------                ---------------------------

LANDLORD:

NATIONWIDE HEALTH PROPERTIES, INC.,
a Maryland corporation

By:      /s/ Abdo H. Khoury
         -----------------------------------
Name:    Abdo H. Khoury
         -----------------------------------
Title:   Chief Portfolio Officer & Senior
         -----------------------------------
         Vice President
         -----------------------------------

Witness:        /s/ Illegible               Witness:        /s/ Illegible
         ---------------------------                ---------------------------

                                      S-1
<PAGE>
NH TEXAS PROPERTIES LIMITED PARTNERSHIP,
 a Texas limited partnership

By:      MLD TEXAS CORPORATION,
         a Texas corporation,
         its General Partner

         By:      /s/ Abdo H. Khoury
                  -----------------------------------
         Name:    Abdo H. Khoury
                  -----------------------------------
         Title:   Chief Portfolio Officer & Senior
                  -----------------------------------
                  Vice President
                  -----------------------------------

Witness:          /s/ Illegible            Witness:          /s/ Illegible
         ---------------------------                ---------------------------

MLD PROPERTIES, LLC,
a Delaware limited liability company

BY:      MLD PROPERTIES, INC.,
         a Delaware corporation,
         its Sole Member

By:      /s/ Abdo H. Khoury
         -----------------------------------
Name:    Abdo H. Khoury
         -----------------------------------
Title:   Chief Portfolio Officer & Senior
         -----------------------------------
         Vice President
         -----------------------------------

Witness:          /s/ Illegible            Witness:          /s/ Illegible
         ---------------------------                ---------------------------

S-2
<PAGE>
MLD DELAWARE TRUST,
a Delaware business trust

By:      /s/ Abdo Khoury
         ---------------------------
                                    , not in his individual capacity,
------------------------------------
but solely as Trustee

Witness:          /s/ Illegible            Witness:          /s/ Illegible
         ---------------------------                ---------------------------

NHP SILVERWOOD INVESTMENTS, INC.,
a Nevada corporation

By:      /s/ Abdo H. Khoury
         -----------------------------------
Name:    Abdo H. Khoury
         -----------------------------------
Title:   Chief Portfolio Officer & Senior
         -----------------------------------
         Vice President
         -----------------------------------

Witness:          /s/ Illegible            Witness:          /s/ Illegible
         ---------------------------                ---------------------------

NHP WESTWOOD INVESTMENTS, INC.,

a Nevada corporation

By:      /s/ Abdo H. Khoury
         -----------------------------------
Name:    Abdo H. Khoury
         -----------------------------------
Title:   Chief Portfolio Officer & Senior
         -----------------------------------
         Vice President
         -----------------------------------

Witness:          /s/ Illegible            Witness:          /s/ Illegible
         ---------------------------                ---------------------------

                                      S-3

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