Document:

Rights Agreement, dated as of January 14, 2009

 Exhibit 4.3 
 RIGHTS AGREEMENT 
 COLLECTORS UNIVERSE, INC. 
 and 
 STOCKTRANS, INC.

 as Rights Agent 
 Dated as of January 14, 2009 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page
	Section 1.	 	Certain Definitions	  	1
			
	Section 2.	 	Appointment of Rights Agent	  	9
			
	Section 3.	 	Issuance of Rights Certificates.	  	9
			
	Section 4.	 	Form of Rights Certificates.	  	12
			
	Section 5.	 	Countersignature and Registration.	  	13
			
	Section 6.	 	Transfer, Split-Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates.	  	13
			
	Section 7.	 	Exercise of Rights; Purchase Price; Expiration Date of Rights.	  	14
			
	Section 8.	 	Cancellation and Destruction of Rights Certificates.	  	16
			
	Section 9.	 	Reservation and Availability of Capital Stock.	  	16
			
	Section 10.	 	Preferred Stock Record Date	  	17
			
	Section 11.	 	Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights	  	17
			
	Section 12.	 	Certificate of Adjusted Purchase Price or Number of Shares	  	24
			
	Section 13.	 	Consolidation, Merger or Sale or Transfer of Assets, Cash Flow or Earning Power.	  	24
			
	Section 14.	 	Fractional Rights and Fractional Shares.	  	26
			
	Section 15.	 	Rights of Action	  	27
			
	Section 16.	 	Agreement of Rights Holders	  	28
			
	Section 17.	 	Rights Certificate Holder Not Deemed a Stockholder	  	28
			
	Section 18.	 	Concerning the Rights Agent.	  	29
			
	Section 19.	 	Merger or Consolidation or Change of Name of Rights Agent.	  	29
			
	Section 20.	 	Duties of Rights Agent	  	30
			
	Section 21.	 	Change of Rights Agent	  	31
			
	Section 22.	 	Issuance of New Rights Certificates	  	32
			
	Section 23.	 	Redemption and Termination.	  	32
			
	Section 24.	 	Exchange.	  	34
			
	Section 25.	 	Notice of Certain Events.	  	35
			
	Section 26.	 	Notices	  	36
			
	Section 27.	 	Supplements and Amendments	  	37
			
	Section 28.	 	Successors	  	37
			
	Section 29.	 	Determinations and Actions by the Board of Directors, etc	  	37

  

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	Section 30.	 	Benefits of this Agreement	  	37
			
	Section 31.	 	Severability	  	38
			
	Section 32.	 	Governing Law	  	38
			
	Section 33.	 	Counterparts	  	38
			
	Section 34.	 	Descriptive Headings	  	38

 Exhibits 
  

					
		 	Exhibit A —	 	Form of Certificate of Designation, Preferences and Rights of Series A Junior Participating Preferred Stock
			
		 	Exhibit B —	 	Form of Rights Certificate
			
		 	Exhibit C —	 	Summary of Rights

  

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 RIGHTS AGREEMENT 
 RIGHTS AGREEMENT, dated as of January 14, 2009 (this “Agreement”), between Collectors Universe, Inc., a Delaware corporation (the “Company”), and StockTrans, Inc.,
a Delaware corporation (the “Rights Agent”). 
 WITNESSETH: 
 WHEREAS, on January 9, 2009 (the “Rights Dividend Declaration Date”), the Board of Directors of the Company (the
“Board”) authorized and declared a dividend distribution of one Right (as hereinafter defined) for each share of Common Stock (as hereinafter defined) outstanding at the Close of Business (as hereinafter defined) on
January 23, 2009 (the “Record Date”), and has authorized the issuance of one Right (as such number may hereinafter be adjusted pursuant to the provisions of Section 11(p) hereof) for each share of Common Stock
issued between the Record Date (whether originally issued or delivered from the Company’s treasury) and the Distribution Date (as hereinafter defined), each Right initially representing the right to purchase one one-thousandth of a share of
Series A Junior Participating Preferred Stock of the Company (the “Preferred Stock”) having the rights, powers and preferences set forth in the form of Certificate of Designation, Preferences and Rights attached hereto as
Exhibit A, upon the terms and subject to the conditions hereinafter set forth (the “Rights”). 
 NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties hereby agree as follows: 
 Section 1. Certain Definitions. For purposes of this Agreement, the following terms have the meanings indicated: 
 (a)
“Acquiring Person” shall mean any Person who or which, together with all Affiliates and Associates of such Person, shall be the Beneficial Owner of twenty percent (20%) or more of the shares of Common Stock then
outstanding, but shall not include (i) the Company, (ii) any Subsidiary of the Company, (iii) any employee benefit plan of the Company, or of any Subsidiary of the Company, or any Person or entity organized, appointed or established
by the Company for or pursuant to the terms of any such plan, (iv) any Person who becomes the Beneficial Owner of twenty percent (20%) or more of the shares of Common Stock then outstanding as a result of a reduction in the number of
shares of Common Stock outstanding due to the repurchase of shares of Common Stock by the Company, unless and until such Person, after becoming aware that such Person has become the Beneficial Owner of twenty percent (20%) or more of the then
outstanding shares of Common Stock, acquires beneficial ownership of additional shares of Common Stock representing one-half of one percent (0.5%) or more of the shares of Common Stock then outstanding, or (v) any Grandfathered Stockholder.
Notwithstanding the foregoing, if the Board determines in good faith that a Person who would otherwise be an Acquiring Person but for the operation of this clause has become such inadvertently (including, without limitation, because (A) such
Person was unaware that it beneficially owned a percentage of Common Stock that would otherwise cause such Person to be an Acquiring Person or (B) such Person was aware of the extent of its Beneficial Ownership of Common Stock but had no actual
knowledge of the consequences of such Beneficial Ownership under this Agreement) and without any intention of changing or influencing control of the Company, then such Person shall not be deemed to be or to have become an Acquiring Person for any
purposes of this Agreement unless and until such Person shall have failed to promptly (and in any event within five (5) Business Days after being so requested by the Company) divest itself of Beneficial 

 
Ownership of a sufficient number of shares of Common Stock so that such Person would no longer otherwise qualify as an Acquiring Person, or, in the case
solely of Derivative Common Stock, such Person shall have failed to promptly (and in any event within five (5) Business Days after being so requested by the Company) terminate the subject derivative transaction or transactions or to dispose of
the subject derivative security or securities, or to establish to the satisfaction of the Board that such Derivative Common Stock is not held with any intention of changing or influencing control of the Company. 
 (b) “Act” shall mean the Securities Act of 1933, as amended. 
 (c) “Adjustment Shares” shall have the meaning set forth in Section 11(a)(ii) hereof. 
 (d) “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2
of the General Rules and Regulations under the Exchange Act. 
 (e) “Agreement” shall mean this Agreement as it may
from time to time be supplemented, amended, renewed, restated or extended pursuant to the applicable provisions hereof. 
 (f) A Person shall
be deemed the “Beneficial Owner” of, and shall be deemed to “beneficially own,” any securities: 
 (i) which such Person or any of such Person’s Affiliates or Associates, directly or indirectly, owns or has the right to acquire (whether such right is exercisable immediately or only after the passage of time or upon the satisfaction
of one or more conditions (whether or not within the control of such Person), compliance with regulatory requirements or otherwise) pursuant to any agreement, arrangement or understanding (whether or not in writing and other than customary
agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities) or upon the exercise of conversion rights, exchange rights, other rights, warrants or options, or otherwise;
provided, however, that a Person shall not be deemed the “Beneficial Owner” of, or to “beneficially own,” (A) securities tendered pursuant to a tender or exchange offer made in accordance with the General Rules
and Regulations under the Exchange Act by such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for purchase or exchange, (B) securities issuable upon exercise of Rights at any time prior
to the occurrence of a Triggering Event (as hereinafter defined), or (C) securities issuable upon exercise of Rights from and after the occurrence of a Triggering Event which Rights were acquired by such Person or any of such Person’s
Affiliates or Associates prior to the Distribution Date (as hereinafter defined) or pursuant to Section 3(a) or Section 22 hereof (the “Original Rights”) or pursuant to Section 11(i) hereof in connection
with an adjustment made with respect to any Original Rights; 
 (ii) which such Person or any of such Person’s Affiliates or
Associates, directly or indirectly, has the right to vote or dispose of or has “beneficial ownership” of (as determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Exchange Act), including pursuant to any
agreement, arrangement or understanding, whether or not in writing; provided, however, that a Person shall not be deemed the “Beneficial Owner” of, or to “beneficially own,” any security under this
subparagraph (ii) as a result of an agreement, arrangement or understanding (whether or not in writing) to vote such security if such agreement, arrangement or understanding: (A) arises solely from a revocable proxy given in response to a
public proxy or 

  

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consent solicitation made pursuant to, and in accordance with, the applicable provisions of the General Rules and Regulations under the Exchange Act; and
(B) is not reportable by such Person on Schedule 13D under the Exchange Act (or any comparable or successor report); 
 (iii) which are
beneficially owned, directly or indirectly, by any other Person (or any Affiliate or Associate thereof) with which such Person (or any of such Person’s Affiliates or Associates) has any agreement, arrangement or understanding (whether or not in
writing), for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy as described in the proviso to subparagraph (ii) of this paragraph (e)) or disposing of any voting securities of the Company; provided,
however, that nothing in this paragraph (e) shall cause a Person engaged in business as an underwriter of securities to be the “Beneficial Owner” of, or to “beneficially own,” any securities acquired through such
Person’s participation in good faith in a firm commitment underwriting until the expiration of forty (40) days after the date of such acquisition, and then only if such securities continue to be owned by such Person at such expiration of
forty (40) days; or 
 (iv) which are the subject of a derivative transaction entered into by such Person, or derivative security
acquired by such Person, which gives such Person the economic equivalent of ownership of an amount of such securities due to the fact that the value of the derivative is explicitly determined by reference to the price or value of such securities,
without regard to whether (a) such derivative conveys any voting rights in such securities to such Person, (b) the derivative is required to be, or capable of being, settled through delivery of such securities, or (c) such Person may
have entered into other transactions that hedge the economic effect of such derivative. In determining the number of shares of Common Stock deemed Beneficially Owned by virtue of the operation of this Section 1(e)(iv), the subject Person shall
be deemed to Beneficially Own (without duplication) the number of shares of Common Stock that are synthetically owned pursuant to such derivative transactions or such derivative securities. Such shares of Common Stock that are deemed so Beneficially
Owned pursuant to the operation of this Section 1(e)(iv) shall be referred to herein as “Derivative Common Stock.” 
 Notwithstanding anything in this definition of Beneficial Ownership to the contrary, the phrase “then outstanding,” when used with reference to a Person’s Beneficial Ownership of securities of the Company, shall mean the
number of such securities then issued and outstanding together with the number of such securities not then actually issued and outstanding that such Person would be deemed to Beneficially Own hereunder. 
 (g) “Board” shall have the meaning set forth in the preamble to this Agreement. 
 (h) “Business Day” shall mean any day other than a Saturday, Sunday or a day on which banking institutions in the States of New
York and California, or the State in which the principal office of the Rights Agent is located, are authorized or obligated by law or executive order to close. 
 (i) “Close of Business” on any given date shall mean 5:00 P.M., New York City time, on such date; provided, however, that if such date is not a Business Day, it shall mean 5:00
P.M., New York City time, on the next succeeding Business Day. 
 (j) “Common Stock” shall mean the common stock, par
value $0.001 per share, of the Company or any other shares of capital stock of the Company into which such stock shall be 

  

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reclassified or changed, except that “Common Stock” when used with reference to any Person other than the Company shall mean the capital stock of
such Person with the greatest voting power, or the equity securities or other equity interest having power to control or direct the management, of such Person. 
 (k) “Common Stock Equivalents” shall have the meaning set forth in Section 11(a)(iii) hereof. 
 (l) “Company” shall have the meaning set forth in the preamble to this Agreement until a successor corporation or entity shall have become such or until a Principal Party (as hereinafter
defined) shall assume, and thereafter be liable for, all obligations and duties of the Company hereunder pursuant to the applicable provisions of this Agreement, and thereafter, “Company” shall mean such successor or Principal Party,
respectively. 
 (m) “Current Market Price” shall have the meaning set forth in Section 11(d)(i) hereof.

 (n) “Current Value” shall have the meaning set forth in Section 11(a)(iii) hereof. 
 (o) “Definitive Acquisition Agreement” shall mean any agreement entered into by the Company that is conditioned on the approval
by the holders of not less than a majority of the outstanding shares of Common Stock at a meeting of stockholders with respect to (i) a merger, consolidation, recapitalization, reorganization, share exchange, business combination or similar
transaction involving the Company or (ii) the acquisition in any manner, directly or indirectly, of more than fifty percent (50%) of the consolidated total assets (including, without limitation, equity securities of its subsidiaries) of
the Company. 
 (p) “Derivative Common Stock” shall have the meaning set forth in Section 1(e)(iv) hereof.

 (q) “Distribution Date” shall have the meaning set forth in Section 3(a) hereof. 
 (r) “Equivalent Preferred Stock” shall have the meaning set forth in Section 11(b) hereof. 
 (s) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 (t) “Exchange Ratio” shall have the meaning set forth in Section 24 hereof. 
 (u) “Expiration Date” shall have the meaning set forth in Section 7(a) hereof. 
 (v) “Final Expiration Date” shall mean the date upon which the Rights expire and shall be the Close of Business on
(i) January 9, 2012, if this Agreement is approved on or before January 9, 2010 by the affirmative vote of the holders of a majority of the shares of Common Stock, present or represented by proxy and entitled to vote on that matter,
at a meeting of the stockholders held in accordance with applicable law, or (ii) January 9, 2010, if this Agreement is not so approved by the stockholders on or before that date, in each case, unless the Rights are previously redeemed,
exchanged or terminated. 
  

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 (w) “Grandfathered Stockholder” shall mean any Person that would otherwise be
deemed an Acquiring Person upon the adoption of this Agreement (but for the exceptions set forth in Section 1(a)); provided, however, that any Grandfathered Stockholder shall not be deemed an Acquiring Person for purposes of this
Agreement only for so long as neither it nor any of its Affiliates or Associates acquire beneficial ownership of any additional shares of Common Stock after adoption of this Agreement (other than pursuant to a dividend or distribution paid or made
by the Company on a pro rata basis to all holders of outstanding Common Stock or pursuant to a split or subdivision of the outstanding Common Stock), and in the event that any Grandfathered Stockholder (or its Affiliates or Associates) does so
acquire beneficial ownership of additional shares of Common Stock, then such Person shall no longer be deemed a Grandfathered Stockholder and shall be deemed an Acquiring Person if at such time such Person, together with all Affiliates and
Associates of such Person, is the Beneficial Owner of twenty percent (20%) or more of the shares of Common Stock then outstanding. 
 (x) “Independent Directors” shall mean members of the Board of Directors of the Company who are not officers, employees or Affiliates (or designees of Affiliates) of the Company. 
 (y) “Nasdaq” shall mean The Nasdaq Stock Market, LLC’s Global Market. 
 (z) “Outside Meeting Date” shall have the meaning set forth in Section 23(b) hereof. 
 (aa) “Person” shall mean any individual, firm, corporation, partnership, limited liability company, trust, association, syndicate
or other entity and includes, without limitation, an unincorporated group of persons who, by formal or informal agreement or arrangement (whether or not in writing), have embarked on a common purpose or act. 
 (bb) “Preferred Stock” shall mean shares of Series A Junior Participating Preferred Stock, par value $0.001 per share, of the
Company, and, to the extent that there are not a sufficient number of shares of Series A Junior Participating Preferred Stock authorized to permit the full exercise of the Rights, any other series of preferred stock of the Company designated for
such purpose containing terms substantially similar to the terms of the Series A Junior Participating Preferred Stock. 
 (cc)
“Principal Party” shall have the meaning set forth in Section 13(b) hereof. 
 (dd) “Purchase
Price” shall have the meaning set forth in Section 4(a) hereof. 
 (ee) “Qualified Offer” shall
mean an offer determined by a majority of the Independent Directors to have each of the following characteristics: 
 (i) a fully financed,
all cash tender offer, or an exchange offer offering shares of common stock of the offeror, or a combination thereof, in each such case for all of the outstanding shares of Common Stock at the same per share consideration; 
 (ii) an offer that has commenced within the meaning of Rule 14d–2(a) under the Exchange Act; 
  

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 (iii) an offer whose per share offer price is greater than the highest reported market price for the
Common Stock in the immediately preceding eighteen (18) months, with, in the case of an offer that includes shares of common stock of the offeror, such per share offer price being determined using the lowest reported market price for common
stock of the offeror during the five (5) trading days immediately preceding and the five (5) trading days immediately following the commencement of such offer within the meaning of Rule 14d–2(a) under the Exchange Act; 
 (iv) an offer that, within twenty (20) Business Days after the commencement date of the offer (or within ten (10) Business Days after any
increase in the offer consideration), results in a nationally recognized investment banking firm retained by the Board rendering an opinion, in writing, to the Board that the consideration being offered is fair from a financial standpoint to the
stockholders of the Company (other than the Acquiring Person and its Affiliates); 
 (v) if the offer includes shares of common stock of the
offeror, an offer pursuant to which (A) the offeror shall permit representatives of the Company (including a nationally recognized investment banking firm retained by the Board and legal counsel and an accounting firm designated by the Company)
to have access to such offeror’s books, records, management, accountants and other appropriate outside advisors for the purposes of permitting such representatives to conduct a due diligence review of the offeror in order to permit the Board to
evaluate the offer and make an informed decision and, if requested by the Board, to permit such investment banking firm (relying as appropriate on the advice of such legal counsel) to be able to render an opinion to the Board with respect to whether
the consideration being offered to the stockholders of the Company is fair from a financial point of view and (B) within ten (10) Business Days after such representatives of the Company (including a nationally recognized investment banking
firm retained by the Board and legal counsel and an accounting firm designated by the Company) shall have notified the Company and the offeror that they have completed such due diligence review to their satisfaction (or, following completion of such
due diligence review, within ten (10) Business Days after any increase in the consideration being offered), such investment banking firm renders an opinion, in writing, to the Board that the consideration being offered is fair from a financial
standpoint to the stockholders of the Company (other than the Acquiring Person and its Affiliates); 
 (vi) an offer that is subject to only
the minimum tender condition described below in Section 1(ee)(ix) and other customary terms and conditions, which conditions shall not include any financing, funding or similar conditions or any requirements with respect to the offeror or its
agents being permitted any due diligence with respect to the books, records, management, accountants or other outside advisors of the Company; 
 (vii) an offer pursuant to which the Company has received an irrevocable written commitment of the offeror that the offer will remain open for at least one hundred twenty (120) Business Days and, if a Special Meeting is duly requested
in accordance with Section 23(b), for at least ten (10) Business Days after the date of the Special Meeting or, if no Special Meeting is held within ninety (90) Business Days following receipt of the Special Meeting Notice in
accordance with Section 23(b), for at least ten (10) Business Days following such ninety (90) Business Day period; 
  

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 (viii) an offer pursuant to which the Company has received an irrevocable written commitment of the
offeror that, in addition to the minimum time periods specified above in Section 1(ee)(vii), the offer, if it is otherwise to expire prior thereto, will be extended for at least twenty (20) Business Days after any increase in the
consideration being offered or after any bona fide alternative offer is commenced within the meaning of Rule 14d–2(a) under the Exchange Act; provided, however, that such offer need not remain open, as a result of
Section 1(ee)(vii) and this Section 1(ee)(viii), beyond (A) the time that any other offer satisfying the criteria for a Qualified Offer is then required to be kept open under such Section 1(ee)(vii) and this
Section 1(ee)(viii) or (B) the expiration date, as such date may be extended by public announcement (with prompt written notice to the Rights Agent) in compliance with Rule 14e–1 under the Exchange Act, of any other tender offer for
the Common Stock with respect to which the Board has agreed to redeem the Rights immediately prior to acceptance for payment of Common Stock thereunder (unless such other offer is terminated prior to its expiration without any Common Stock having
been purchased thereunder) or (C) one (1) Business Day after the stockholder vote with respect to approval of any Definitive Acquisition Agreement has been officially determined and certified by the inspectors of elections; 
 (ix) an offer that is conditioned on a minimum of at least two-thirds ( 2/3rds) of the outstanding shares of the Common Stock not held by the Person making such offer (and such Person’s Affiliates
and Associates) being tendered and not withdrawn as of the offer’s expiration date, which condition shall not be waivable; 
 (x) an offer pursuant to which the Company has received an irrevocable written commitment of the offeror to consummate, as promptly as practicable upon successful completion of the offer, a second step transaction whereby all shares of the
Common Stock not tendered into the offer will be acquired at the same consideration per share actually paid pursuant to the offer, subject to stockholders’ statutory appraisal rights, if any; 
 (xi) an offer pursuant to which the Company and its stockholders have received an irrevocable written commitment of the offeror that no amendments will
be made to the offer to reduce the consideration being offered or to otherwise change the terms of the offer in a way that is adverse to a tendering stockholder; 
 (xii) an offer (other than an offer consisting solely of cash consideration) pursuant to which the Company has received the written representation and certification of the offeror and, in their individual capacities,
the written representations and certifications of the offeror’s principal executive officer and principal financial officer, that (A) all facts about the offeror that would be material to making an investor’s decision to accept the
offer have been fully and accurately disclosed as of the date of the commencement of the offer within the meaning of Rule 14d–2(a) under the Exchange Act, (B) all such new facts will be fully and accurately disclosed on a prompt basis
during the entire period during which the offer remains open, and (C) all required Exchange Act reports will be filed by the offeror in a timely manner during such period; and 
 (xiii) if the offer includes non-cash consideration, (A) the non-cash portion of the consideration offered must consist solely of common stock of a
Person that is a publicly-held United States corporation, (B) such common stock must be freely tradable and listed or admitted to trading on a national securities exchange, (C) no stockholder approval of the issuer of such common stock is
required to issue such common stock, or, if such approval is required, such approval has already been obtained, (D) no Person (including such Person’s Affiliates and Associates) beneficially owns more than twenty percent (20%) of the
voting stock of the issuer of such common stock at the 

  

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time of commencement of the offer or at any time during the term of the offer, (E) no other class of voting stock of the issuer of such common stock is
outstanding and (F) the issuer of such common stock meets the registrant eligibility requirements for use of Form S–3 for registering securities under the Securities Act, including the filing of all required Exchange Act reports in a
timely manner during the twelve (12) calendar months prior to the date of commencement of such offer. 
 For the purposes of this
definition of Qualified Offer, “fully financed” shall mean that the offeror has sufficient funds for the offer and related expenses which shall be evidenced by (1) firm, unqualified, written commitments from responsible
financial institutions having the necessary financial capacity, accepted by the offeror, to provide funds for such offer subject only to customary terms and conditions, (2) cash or cash equivalents then available to the offeror, set apart and
maintained solely for the purpose of funding the offer with an irrevocable written commitment being provided by the offeror to the Board to maintain such availability until the offer is consummated or withdrawn or (3) a combination of the
foregoing; which evidence has been provided to the Company prior to, or upon, commencement of the offer and is reasonably satisfactory to the Board. If an offer becomes a Qualified Offer in accordance with this definition, but subsequently ceases to
be a Qualified Offer as a result of the failure at a later date to continue to satisfy any of the requirements of this definition, such offer shall cease to be a Qualified Offer and the provisions of Section 23(b) shall no longer be applicable
to such offer, provided that the actual redemption of the Rights pursuant to Section 23(b) shall not have already occurred. 
 (ff)
“Record Date” shall have the meaning set forth in the preamble of this Agreement. 
 (gg) “Redemption
Period” shall have the meaning set forth in Section 23(a) hereof. 
 (hh) “Redemption Price” shall
have the meaning set forth in Section 23(a) hereof. 
 (ii) “Redemption Resolution” shall have the meaning set
forth in Section 23(b) hereof. 
 (jj) “Rights” shall have the meaning set forth in the preamble of this
Agreement. 
 (kk) “Rights Agent” shall have the meaning set forth in the preamble of this Agreement. 
 (ll) “Rights Certificate” shall have the meaning set forth in Section 3(a) hereof. 
 (mm) “Rights Dividend Declaration Date” shall have the meaning set forth in the preamble of this Agreement. 
 (nn) “Section 11(a)(ii) Event” shall mean any event described in Section 11(a)(ii) hereof. 
 (oo) “Section 11(a)(ii) Trigger Date” shall have the meaning set forth in Section 11(a)(iii) hereof. 

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

  

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 (qq) “Special Meeting” shall have the meaning set forth in Section 23(b)
hereof. 
 (rr) “Special Meeting Notice” shall have the meaning set forth in Section 23(b) hereof. 

(ss) “Special Meeting Period” shall have the meaning set forth in Section 23(b) hereof. 
 (tt) “Spread” shall have the meaning set forth in Section 11(a)(iii) hereof. 
 (uu) “Stock Acquisition Date” shall mean the first date of public announcement (which, for purposes of this definition, shall
include, without limitation, a report filed or amended pursuant to Section 13(d) under the Exchange Act) by the Company or an Acquiring Person that an Acquiring Person has become such. 
 (vv) “Subsidiary” shall mean, with reference to any Person, any corporation or other entity of which an amount of securities or
other ownership interest having ordinary voting power sufficient to elect at least a majority of the directors or other Persons having similar functions of such corporation or other entity are at the time, directly or indirectly, beneficially owned,
or otherwise controlled by such Person. 
 (ww) “Substitution Period” shall have the meaning set forth in
Section 11(a)(iii) hereof. 
 (xx) “Summary of Rights” shall have the meaning set forth in Section 3(b)
hereof. 
 (yy) “Trading Day” shall have the meaning set forth in Section 11(d)(i) hereof. 
 (zz) “Triggering Event” shall mean any Section 11(a)(ii) Event or any Section 13 Event. 
 Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as rights agent for the Company and the holders
of the Rights (who, in accordance with Section 3 hereof, shall prior to the Distribution Date also be the holders of the Common Stock) 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. 
 Section 3. Issuance of Rights
Certificates. 
 (a) Until the earlier of (i) the Close of Business on the tenth (10th) calendar day after the Stock Acquisition
Date (or, if the tenth (10th) calendar day after the Stock Acquisition Date has occurred or occurs before the Record Date, the Close of Business on the Record Date), or (ii) the Close of Business on the tenth (10th) Business Day (or
such later date as may be determined by the Board before the occurrence of the Distribution Date) after the date that a tender or exchange offer by any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan of the
Company or of any Subsidiary of the Company, or any Person or entity organized, appointed or established by the Company for or pursuant to the terms of any such plan) is first published or sent or given within the meaning of Rule 14d-2(a) of
the General Rules and Regulations under the Exchange Act, if, upon consummation thereof, such Person would become an Acquiring Person (the earlier of 

  

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(i) and (ii) being herein referred to as the “Distribution Date”), (x) the Rights will be evidenced (subject to the
provisions of paragraph (b) or (c) of this Section 3) by the balances indicated in the book-entry account system of the transfer agent for the Common Stock registered in the names of the holders of the Common Stock (which shares of
Common Stock shall also be deemed to represent certificates for Rights) or, in the case of certificated shares, the certificates for the Common Stock registered in the names of the holders of the Common Stock (which certificates for Common Stock
shall also be deemed to be certificates for Rights), and not by separate certificates, and (y) the Rights will be transferable only in connection with the transfer of the underlying shares of Common Stock (including a transfer to the Company).
As soon as practicable after the Distribution Date, the Rights Agent will 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, at the address of such
holder shown on the records of the Company, one or more rights certificates, in substantially the form of Exhibit B attached hereto (the “Rights Certificates”), evidencing one Right for each share of Common Stock
so held, subject to adjustment as provided herein. In the event that an adjustment in the number of Rights per share of Common Stock has been made pursuant to Section 11(p) hereof, at the time of distribution of the Rights Certificates, the
Company shall make the necessary and appropriate rounding adjustments (in accordance with Section 14(a) hereof) so that Rights Certificates representing only whole numbers of Rights are distributed and cash is paid in lieu of any
fractional Rights. As of and after the Distribution Date, the Rights will be evidenced solely by such Rights Certificates. 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. 
 (b) The Company will make available, as promptly as practicable following the Record Date, a copy of a Summary of Rights, in substantially the form attached hereto as Exhibit C (the “Summary of Rights”),
to any holder of Rights who may so request from time to time prior to the Expiration Date. With respect to shares of the Common Stock outstanding as of the Record Date, or issued subsequent to the Record Date, unless and until the Distribution Date
shall occur, the Rights will be evidenced by the balances indicated in the book-entry account system of the transfer agent for the Common Stock or, in the case of certificated shares, such certificates for the Common Stock, and the registered
holders of the Common Stock shall also be the registered holders of the associated Rights. Until the earlier of the Distribution Date or the Expiration Date, the transfer of any shares of Common Stock in respect of which Rights have been issued
shall also constitute the transfer of the Rights associated with such shares of Common Stock. 
 (c) Rights shall be issued in respect of all
shares of Common Stock which are issued (whether originally issued or from the Company’s treasury) after the Record Date but prior to the earlier of the Distribution Date or the Expiration Date and shall bear the following legends: 

(i) Confirmation and account statements sent to holders of shares of Common Stock in book-entry form (which shares of Common Stock shall also be
deemed to represent certificates for Rights) shall bear a legend in substantially the following form: 
 “Each share of
Common Stock, par value $0.001 per share, of Collectors Universe, Inc., a Delaware corporation (the “Company”), entitles the holder hereof to certain Rights as set forth in the Rights Agreement between the Company and the Rights Agent
thereunder (the “Rights Agent”) dated as of January 14, 2009, as it may be amended, restated, renewed or extended from time to time (the “Rights Agreement”), the terms of which are hereby incorporated herein by reference and
a 

  

 10 

 
copy of which is on file at the principal offices of the Company and the Rights Agent. Under certain circumstances, as set forth in the Rights Agreement,
such Rights will be evidenced by separate certificates and will no longer be evidenced by the shares to which this statement relates. The Rights Agent will mail to the holder of shares to which this statement relates a copy of the Rights Agreement,
as in effect on the date of mailing, without charge, promptly after receipt of a written request therefor. Under certain circumstances set forth in the Rights Agreement, Rights beneficially owned (as such term is defined in the Rights Agreement) by
any Person who is, was or becomes an Acquiring Person or any Affiliate or Associate thereof (as such terms are defined in the Rights Agreement), whether currently held by or on behalf of such Person or by any subsequent holder, may become null and
void.” 
 With respect to shares of Common Stock in book-entry form for which there has been sent a confirmation or account statement
containing the foregoing legend, until the earlier of (i) the Distribution Date or (ii) the Expiration Date, the Rights associated with the Common Stock represented by such shares of Common Stock shall be evidenced by such shares of Common
Stock alone and registered holders of Common Stock shall also be the registered holders of the associated Rights, and the transfer of any of such shares of Common Stock shall also constitute the transfer of the Rights associated with such shares of
Common Stock. 
 (ii) In the case of certificated shares, certificates representing shares of Common Stock (which certificates shall also be
deemed to be certificates for Rights) shall bear a legend in substantially the following form if such certificates are issued after the Record Date but prior to the earlier of the Distribution Date or the Expiration Date: 
 “This certificate also evidences and entitles the holder hereof to certain Rights as set forth in the Rights Agreement between
Collectors Universe, Inc., a Delaware corporation (the “Company”), and the Rights Agent thereunder (the “Rights Agent”) dated as of January 14, 2009, as it may be amended, restated, renewed or extended from time to time (the
“Rights Agreement”), the terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal offices of the Company and the Rights Agent. Under certain circumstances, as set forth in the Rights
Agreement, such Rights will be evidenced by separate certificates and will no longer be evidenced by this certificate. The Rights Agent will mail to the holder of this certificate a copy of the Rights Agreement, as in effect on the date of mailing,
without charge, promptly after receipt of a written request therefor. Under certain circumstances set forth in the Rights Agreement, Rights beneficially owned (as such term is defined in the Rights Agreement) by any Person who is, was or becomes an
Acquiring Person or any Affiliate or Associate thereof (as such terms are defined in the Rights Agreement), whether currently held by or on behalf of such Person or by any subsequent holder, may become null and void.” 
 With respect to such certificates containing the foregoing legend, until the earlier of (i) the Distribution Date or (ii) the Expiration Date,
the Rights associated with the Common Stock represented by such certificates shall be evidenced by such certificates alone and registered holders of Common Stock shall also be the registered holders of the associated Rights, and the transfer of any
of such certificates shall also constitute the transfer of the Rights associated with the Common Stock represented by such certificates. In the event that the Company purchases or otherwise acquires any Common Stock after the Record Date but prior
to the Distribution Date, any Rights associated with such Common Stock shall be deemed cancelled and retired so that the Company shall not be entitled to exercise any Rights associated with the shares of Common Stock which are no longer outstanding.

  

 11 

 Notwithstanding this paragraph (c) or anything to the contrary that may be contained elsewhere in
this Agreement, the omission of a legend shall not affect the enforceability of any part of this Agreement. 
 Section 4. Form of
Rights Certificates. 
 (a) The Rights Certificates (and the forms of election to purchase and of assignment to be printed on the reverse
thereof) shall each be substantially in the form set forth in Exhibit B attached hereto and may have such marks of identification or designation and such legends, summaries or endorsements printed thereon as the Company may deem
appropriate and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of Nasdaq or of any other
stock exchange on which the Rights may from time to time be listed, or to conform to usage. Subject to the provisions of Section 11 and Section 22 hereof, the Rights Certificates, whenever distributed, shall be dated as of the Record Date
and on their face shall entitle the holders thereof to purchase such number of one one-thousandths of a share of Preferred Stock as shall be set forth therein at the price set forth therein (such exercise price per one one-thousandth of a share, the
“Purchase Price”), but the amount and type of securities purchasable upon the exercise of each Right and the Purchase Price thereof shall be subject to adjustment as provided herein. 
 (b) Any Rights Certificate issued pursuant to Section 3(a), Section 11(a)(i) or Section 22 hereof that represents Rights beneficially
owned by: (i) an Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee after the Acquiring Person becomes such, or
(iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer (whether
or not for consideration) from the Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with whom such Acquiring Person has any continuing agreement, arrangement or understanding (whether or not in writing)
regarding the transferred Rights or (B) a transfer which the Board, in its sole discretion, has determined is part of a plan, arrangement or understanding which has as a primary purpose or effect the avoidance of Section 7(e) hereof,
and any Rights Certificate issued pursuant to Section 6 or Section 11 hereof upon transfer, exchange, replacement or adjustment of any other Rights Certificate referred to in this sentence, shall contain (to the extent feasible) a legend
in substantially the following form: 
 “The Rights represented by this Rights Certificate are or were beneficially owned
by a Person who was or became an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such terms are defined in the Rights Agreement). Accordingly, this Rights Certificate and the Rights represented hereby may become null and
void in the circumstances specified in Section 7(e) of the Rights Agreement.” 
 Notwithstanding this paragraph 4(b) or
anything to the contrary that may be contained elsewhere in this Agreement, the omission of the foregoing legend or any legend substantially similar thereto shall not affect the enforceability of any part of this Agreement or the rights of any
holder of the Rights. 
  

 12 

 Section 5. Countersignature and Registration. 
 (a) The Rights 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 of the Company, and by the Secretary, an Assistant Secretary, the Treasurer/Chief Financial Officer or an Assistant Treasurer, either manually or by facsimile signature. The Rights Certificates shall be countersigned by the Rights
Agent, either manually or by facsimile signature, and shall not be valid for any purpose unless so countersigned. In case any officer of the Company who shall have signed any of the Rights Certificates shall cease to be such officer of the Company
before countersignature by the Rights Agent and issuance and delivery by the Company, such Rights Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as though
the Person who signed such Rights Certificates had not ceased to be such officer of the Company; and any Rights Certificates may be signed on behalf of the Company by any Person who, at the actual date of the execution of such Rights Certificate,
shall be a proper officer of the Company to sign such Rights Certificate, although at the date of the execution of this Rights Agreement any such Person was not such an officer. 
 (b) Following the Distribution Date, the Rights Agent will keep, or cause to be kept, at its principal office or offices designated as the appropriate
place for surrender of Rights Certificates upon exercise or transfer, books for registration and transfer of the Rights Certificates issued hereunder. Such books shall show the names and addresses of the respective holders of the Rights
Certificates, the number of Rights evidenced on its face by each of the Rights Certificates and the date of each of the Rights Certificates. 
 Section 6. Transfer, Split-Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates. 
 (a) Subject to the provisions of Section 4(b), Section 7(e) and Section 14 hereof, at any time after the Close of Business on the Distribution Date, and at or prior to the Close of Business on the
Expiration Date, any Rights Certificate or Certificates (other than Rights Certificates representing Rights that may have been exchanged pursuant to Section 24 hereof) may be transferred, split up, combined or exchanged for another Rights
Certificate or Certificates, entitling the registered holder to purchase a like number of one one-thousandths of a share of Preferred Stock (or, following a Triggering Event, Common Stock, other securities, cash or other assets, as the case may be)
as the Rights Certificate or Certificates surrendered then entitles such holder (or former holder in the case of a transfer) to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Rights Certificate or
Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender the Rights Certificate or Certificates to be transferred, split up, combined or exchanged at the principal office or offices 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 Rights Certificate until the registered holder shall have completed and
signed the certificate contained in the form of assignment on the reverse side of such Rights Certificate and shall have provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or
Associates thereof as the Company shall reasonably request. Thereupon the Rights Agent shall, subject to Section 4(b), Section 7(e), Section 14 and Section 24 hereof, countersign and deliver to the Person entitled thereto a
Rights Certificate or Rights Certificates, as the case may be, as so requested. The Company may require payment from the holder of a Rights Certificate of a sum sufficient to cover any tax or governmental charge that may be imposed in connection
with any transfer, split up, combination or exchange of Rights Certificates. 
  

 13 

 (b) Subject to the provisions of this Agreement, at any time after the Distribution Date and prior to the
Expiration Date, upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Rights Certificate, and, in case of loss, theft or destruction, of indemnity or security
reasonably satisfactory to them, and reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Rights Certificate, if mutilated, the Company will
execute and deliver a new Rights Certificate of like tenor to the Rights Agent for countersignature and delivery to the registered owner in lieu of the Rights Certificate so lost, stolen, destroyed or mutilated. 
 Section 7. Exercise of Rights; Purchase Price; Expiration Date of Rights. 
 (a) Subject to Section 7(e) hereof, at any time after the Distribution Date the registered holder of any Rights Certificate may exercise the
Rights evidenced thereby (except as otherwise provided herein including, without limitation, the restrictions on exercisability set forth in Section 9(c), Section 11(a)(iii) and Section 23(a) hereof) in whole or in part upon
surrender of the Rights Certificate, with the form of election to purchase and the certificate on the reverse side thereof duly executed, to the Rights Agent at the principal office or offices of the Rights Agent designated for such purpose,
together with payment of the aggregate Purchase Price with respect to the total number of one one-thousandths of a share of Preferred Stock (or other securities, cash or other assets, as the case may be) as to which such surrendered Rights are then
exercisable, at or prior to the earlier of (i) the Final Expiration Date or (ii) the time at which the Rights are redeemed or exchanged as provided in Section 23 and Section 24 hereof (the earlier of (i) and (ii) being
herein referred to as the “Expiration Date”). 
 (b) The Purchase Price for each one one-thousandth of a share of
Preferred Stock pursuant to the exercise of a Right initially shall be $14.00, shall be subject to adjustment from time to time as provided in Section 11 and Section 13(a) hereof and shall be payable in accordance with
paragraph 7(c) below. 
 (c) Upon receipt of a Rights Certificate representing exercisable Rights, with the form of election to purchase
and the certificate duly executed, accompanied by payment, with respect to each Right so exercised, of the Purchase Price per one one-thousandth of a share of Preferred Stock (or other shares, securities, cash or other assets, as the case may be) to
be purchased as set forth below and an amount equal to any applicable transfer tax, the Rights Agent shall, subject to Section 7(f) and Section 20(k) hereof, thereupon promptly (i) (A) requisition from any transfer agent of
the shares of Preferred Stock (or make available, if the Rights Agent is the transfer agent for such shares) certificates for the total number of one one-thousandth 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 total number of shares of Preferred Stock issuable upon exercise of the Rights hereunder with a depositary agent,
requisition from the depositary agent depositary receipts representing such number of one one-thousandth of a share of Preferred Stock as are 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 fractional
shares in accordance with 

  

 14 

 
Section 14 hereof, (iii) after receipt of such certificates or depositary receipts, subject to paragraph 7(f) below, cause the same to be
delivered to or, upon the order of the registered holder of such Rights Certificate, registered in such name or names as may be designated by such holder, and (iv) after receipt thereof, subject to paragraph 7(f) below, deliver such cash, if
any, to or upon the order of the registered holder of such Rights Certificate. The payment of the Purchase Price (as such amount may be reduced pursuant to Section 11(a)(iii) hereof) shall be made in cash or by certified bank check or bank
draft payable to the order of the Company. In the event that the Company is obligated to issue other securities (including Common Stock) of the Company, pay cash and/or distribute other property pursuant to Section 11(a) hereof, the
Company will make all arrangements necessary so that such other securities, cash and/or other property are available for distribution by the Rights Agent, if and when appropriate. The Company reserves the right to require prior to the occurrence of
a Triggering Event that, upon any exercise of Rights, a number of Rights be exercised so that only whole shares of Preferred Stock would be issued. 
 (d) In case the registered holder of any Rights Certificate shall exercise less than all the Rights evidenced thereby, a new Rights Certificate evidencing the Rights remaining unexercised shall be issued by the Rights Agent and delivered
to, or upon the order of, the registered holder of such Rights Certificate, registered in such name or names as may be designated by such holder, subject to the provisions of Section 14 hereof. 
 (e) Notwithstanding anything in this Agreement to the contrary, from and after the first occurrence of a Section 11(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) who becomes a transferee after the Acquiring Person becomes
such, or (iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer
(whether or not for consideration) from the Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with whom the Acquiring Person has any continuing agreement, arrangement or understanding (whether or not in
writing) regarding the transferred Rights or (B) a transfer which the Board has determined is part of a plan, arrangement or understanding which has as a primary purpose or effect the avoidance of this Section 7(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 any provision of this Agreement or otherwise. The Company shall use all reasonable efforts to ensure that the
provisions of this Section 7(e) and Section 4(b) hereof are complied with, but shall have no liability to any holder of Rights Certificates or any other Person as a result of its failure to make any determinations with respect to
an Acquiring Person or any of its Affiliates, Associates or transferees hereunder. 
 (f) Notwithstanding anything in this Agreement to the
contrary, neither the Rights Agent nor the Company shall be obligated to undertake any action with respect to a registered holder upon the occurrence of any purported exercise as set forth in this Section 7 unless such registered holder shall
have (i) completed and signed the certificate contained in the form of election to purchase set forth on the reverse side of the Rights Certificate surrendered for such exercise, and (ii) provided such additional evidence of the identity
of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates of such Beneficial Owner as the Company shall reasonably request. 
  

 15 

 Section 8. Cancellation and Destruction of Rights Certificates. 
 All Rights Certificates surrendered for the purpose of exercise, transfer, split-up, combination or exchange shall, if surrendered to the Company or any
of its agents, be delivered to the Rights Agent for cancellation or in cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by it, and no Rights Certificates shall be issued in lieu thereof except as expressly permitted by any
of the provisions of this Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Rights Certificate purchased or acquired by the Company otherwise than
upon the exercise thereof. The Rights Agent shall deliver all cancelled Rights Certificates to the Company, or shall, at the written request of the Company, destroy such cancelled Rights Certificates, and in such case shall deliver a certificate of
destruction thereof to the Company. 
 Section 9. Reservation and Availability of Capital Stock. 
 (a) The Company covenants and agrees that it will use its reasonable efforts to cause to be reserved and kept available out of its authorized and unissued
shares of Preferred Stock (and, following the occurrence of a Triggering Event, out of its authorized and unissued shares of Common Stock and/or other securities or out of its authorized and issued shares held in its treasury), the number of shares
of Preferred Stock (and, following the occurrence of a Triggering Event, Common Stock and/or other securities) or will otherwise comply with Section 11(a)(iii) hereof, in order to permit the exercise in full of all of the outstanding Rights.

 (b) So long as the shares of Preferred Stock (and, following the occurrence of a Triggering Event, Common Stock and/or other securities)
issuable and deliverable upon the exercise of the Rights may be listed on Nasdaq or any other national securities exchange, the Company shall use its best efforts to cause, from and after such time as the Rights become exercisable, all shares
reserved for such issuance to be listed on such exchange upon official notice of issuance upon such exercise. 
 (c) The Company shall use
its best efforts to (i) file, as soon as practicable following the earliest date after the first occurrence of a Section 11(a)(ii) Event on which the consideration to be delivered by the Company upon exercise of the Rights has been
determined in accordance with Section 11(a)(iii) hereof, a registration statement under the Act, with respect to the securities purchasable upon exercise of the Rights on an appropriate form, (ii) cause such registration statement to
become effective as soon as practicable after such filing, and (iii) cause such registration statement to remain effective (with a prospectus at all times meeting the requirements of the Act) until the earlier of (A) the date as of which
the Rights are no longer exercisable for such securities, and (B) the date of the expiration of the Rights. The Company will also take such action as may be appropriate under, or to ensure compliance with, the securities or “blue sky”
laws of the various states in connection with the exercisability of the Rights. The Company may temporarily suspend, for a period of time not to exceed ninety (90) days after the date set forth in clause (i) of the first sentence of this
Section 9(c), the exercisability of the Rights in order to prepare and file such registration statement and permit it to become effective. Upon any such suspension, the Company shall issue a public announcement stating that the exercisability
of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension has been rescinded. In addition, if the Company shall determine that a registration statement is required following the Distribution Date,
the Company may temporarily suspend the exercisability of the Rights until such time as a registration statement has been declared effective. Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be exercisable in any
jurisdiction if the requisite qualification in such jurisdiction shall not have been obtained, the exercise thereof shall not be permitted under applicable law, or a registration statement shall not have been declared effective. 
  

 16 

 (d) The Company covenants and agrees that it will take all such action as may be necessary to ensure that
all one one-thousandths of a share of Preferred Stock (and, following the occurrence of a Triggering Event, Common Stock and/or other securities) delivered upon exercise of Rights shall, at the time of delivery of the certificates for such shares
(subject to payment of the Purchase Price), be duly and validly authorized and issued and fully paid and nonassessable. 
 (e) The Company
further covenants and agrees that it will pay when due and payable any and all federal and state transfer taxes and charges which may be payable in respect of the issuance or delivery of the Rights Certificates and of any certificates for a number
of one one-thousandths of a share of Preferred Stock (or Common Stock and/or other securities, as the case may be) upon the exercise of Rights. The Company shall not, however, be required to pay any transfer tax which may be payable in respect of
any transfer or delivery of Rights Certificates to a Person other than, or the issuance or delivery of a number of one one-thousandths of a share of Preferred Stock (or Common Stock and/or other securities, as the case may be) in respect of a name
other than that of the registered holder of the Rights Certificates evidencing Rights surrendered for exercise, nor shall the Company be required to issue or deliver any certificates (or make any entries in the book-entry account system of the
transfer agent) for a number of one one-thousandths of a share of Preferred Stock (or Common Stock and/or other securities, as the case may be) in a name other than that of the registered holder upon the exercise of any Rights until such tax shall
have been paid (any such tax being payable by the holder of such Rights Certificates at the time of surrender) or until it has been established to the Company’s satisfaction that no such tax is due. 
 Section 10. Preferred Stock Record Date. Each Person in whose name any certificate or entry in the book-entry account system of the transfer
agent for a number of one one-thousandths of a share of Preferred Stock (or Common Stock and/or other securities, as the case may be) is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of such
Preferred Stock (or Common Stock and/or other securities, as the case may be) represented thereby on, and such certificate or entry in the book-entry account system shall be dated, the date upon which the Rights Certificate evidencing such Rights
was duly surrendered and payment of the Purchase Price (and all applicable transfer taxes) was made; provided, however, that if the date of such surrender and payment is a date upon which the Preferred Stock (or Common Stock and/or
other securities, as the case may be) transfer books of the Company are closed, such Person shall be deemed to have become the record holder of such shares (fractional or otherwise) on, and such certificate or entry in the book-entry account system
shall be dated, the next succeeding Business Day on which the Preferred Stock (or Common Stock and/or other securities, as the case may be) transfer books of the Company are open. Prior to the exercise of the Rights evidenced thereby, the holder of
a Rights 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, without limitation, 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. 
 Section 11. Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights. The Purchase Price, the number and kind of shares covered by each Right and the number of Rights outstanding are subject to adjustment from
time to time as provided in this Section 11. 
  

 17 

 (a) (i) In the event the Company shall at any time after the date of this Agreement (A) declare a
dividend on the Preferred Stock payable in shares of Preferred Stock, (B) subdivide or split the outstanding shares of Preferred Stock, (C) combine or consolidate the outstanding shares of Preferred Stock into a smaller number of shares,
through a reverse stock split or` otherwise, or (D) issue any shares of its capital stock in a reclassification of the Preferred Stock (including any such reclassification in connection with a consolidation or merger in which the Company is the
continuing or surviving corporation), except as otherwise provided in this Section 11(a) and Section 7(e) hereof, the Purchase Price in effect at the time of the record date for such dividend or of the effective date of such
subdivision, split, combination, consolidation or reclassification, and the number and kind of shares of Preferred Stock or capital stock, as the case may be, issuable on such date, shall be proportionately adjusted so that the holder of any Right
exercised after such time shall be entitled to receive, upon payment of the Purchase Price then in effect, the aggregate number and kind of shares of Preferred Stock or capital stock, as the case may be, which, if such Right had been exercised
immediately prior to such date and at a time when the Preferred Stock transfer books of the Company were open, such holder would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, split, combination,
consolidation or reclassification. If an event occurs which would require an adjustment under both this Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided for in this Section 11(a)(i) shall be in
addition to, and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii) hereof. 
 (ii) In the event any Person
shall, at any time after the Rights Dividend Declaration Date, become an Acquiring Person, unless the event causing such Person to become an Acquiring Person is a transaction set forth in Section 13(a) hereof, then, promptly following the
later of the occurrence of such event and the Record Date, proper provision shall be made so that, upon the expiration of the Redemption Period, each holder of a Right (except as provided below and in Section 7(e) hereof) shall thereafter have
the right to receive, upon exercise thereof at the then current Purchase Price in accordance with the terms of this Agreement, in lieu of a number of one one-thousandths of a share of Preferred Stock, such number of shares of Common Stock of the
Company as shall equal the result obtained by (x) multiplying the then current Purchase Price by the then number of one one-thousandths of a share of Preferred Stock for which a Right was exercisable immediately prior to the first occurrence of
a Section 11(a)(ii) Event, and (y) dividing that product (which, following such first occurrence, shall thereafter be referred to as the “Purchase Price” for each Right and for all purposes of this Agreement) by
fifty percent (50%) of the Current Market Price (determined pursuant to Section 11(d) hereof) per share of Common Stock on the date of such first occurrence (such number of shares, the “Adjustment Shares”).

 (iii) In the event that the number of treasury shares and shares of Common Stock which are authorized by the Company’s Amended and
Restated Certificate of Incorporation, as amended, but not outstanding or reserved for issuance for purposes other than upon exercise of the Rights, is not sufficient to permit the exercise in full of the Rights in accordance with the foregoing
subparagraph (ii) of this Section 11(a), the Company shall (A) determine the value of the Adjustment Shares issuable upon the exercise of a Right (the “Current Value”), and (B) with respect to each Right
(subject to Section 7(e) hereof), make adequate provision to substitute for the Adjustment Shares, upon the exercise of a Right and payment of the applicable Purchase Price, (1) cash, (2) a reduction in the Purchase Price,
(3) Common Stock or other equity securities of the Company (including, without limitation, shares, or units of shares, of preferred stock, such as the Preferred Stock, which the Board has deemed to have essentially the same value or economic
rights as shares of Common Stock (such shares of preferred stock being referred to as “Common Stock 

  

 18 

 
Equivalents”)), (4) debt securities of the Company, (5) other assets, or (6) any combination of the foregoing, having an
aggregate value equal to the Current Value (less the amount of any reduction in the Purchase Price), where such aggregate value has been determined by the Board based upon the advice of a nationally recognized investment banking firm selected by the
Board; provided, however, that if the Company shall not have made adequate provision to deliver value pursuant to clause (B) above within thirty (30) days following the later of (x) the first occurrence of a
Section 11(a)(ii) Event and (y) the date on which the Company’s right of redemption pursuant to Section 23(a) expires (the later of (x) and (y) being referred to herein as the
“Section 11(a)(ii) Trigger Date”), then the Company shall be obligated to deliver, upon the surrender for exercise of a Right and without requiring payment of the Purchase Price, shares of Common Stock (to the
extent available) and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread. For purposes of the preceding sentence, the term “Spread” shall mean the excess of (i) the Current
Value over (ii) the Purchase Price. If the Board determines in good faith that it is likely that sufficient additional shares of Common Stock could be authorized for issuance upon exercise in full of the Rights, the thirty (30) day period
set forth above may be extended to the extent necessary, but not more than ninety (90) days after the Section 11(a)(ii) Trigger Date, in order that the Company may seek stockholder approval for the authorization of such additional
shares (such thirty (30) day period, as it may be extended, is herein called the “Substitution Period”). To the extent that the Company determines that action should be taken pursuant to the first and/or third sentences
of this Section 11(a)(iii), the Company (1) shall provide, subject to Section 7(e) hereof, that such action shall apply uniformly to all outstanding Rights, and (2) may suspend the exercisability of the Rights until the
expiration of the Substitution Period in order to seek such stockholder approval for such authorization of additional shares and/or to decide the appropriate form of distribution to be made pursuant to such first sentence and to determine the value
thereof. In the event of any such suspension, the Company shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no longer in
effect. For purposes of this Section 11(a)(iii), the value of each Adjustment Share shall be the Current Market Price per share of the Common Stock on the Section 11(a)(ii) Trigger Date and the per share or per unit value of any
Common Stock Equivalent shall be deemed to equal the Current Market Price per share of the Common Stock on such date. 
 (b) In case the
Company shall fix a record date for the issuance of rights, options or warrants to all holders of Preferred Stock entitling them to subscribe for or purchase (for a period expiring within forty-five (45) calendar days after such record date)
Preferred Stock (or shares having the same rights, privileges and preferences as the shares of Preferred Stock (“Equivalent Preferred Stock”)) or securities convertible into Preferred Stock or Equivalent Preferred Stock at a
price per share of Preferred Stock or per share of Equivalent Preferred Stock (or having a conversion price per share, if a security convertible into Preferred Stock or Equivalent Preferred Stock) less than the Current Market Price (as determined
pursuant to Section 11(d) hereof) per share of Preferred Stock on such record date, the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record
date by a fraction, the numerator of which shall be the number of shares of Preferred Stock outstanding on such record date, plus the number of shares of Preferred Stock which the aggregate offering price of the total number of shares of Preferred
Stock and/or Equivalent Preferred Stock so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be offered) would purchase at such Current Market Price, and the denominator of which shall be the number of
shares of Preferred Stock outstanding on such record date, plus the number of additional shares of Preferred Stock and/or Equivalent Preferred Stock to be offered for subscription or purchase (or into which the 

  

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convertible securities so to be offered are initially convertible). In case such subscription price may be paid by delivery of consideration, part or all of
which may be in a form other than cash, the value of such consideration shall be as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent and shall be
binding on the Rights Agent and the holders of the Rights. 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 in the event that such rights or warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed. 
 (c) In case the Company shall fix a record date for a distribution to all holders of Preferred Stock (including any such distribution made in connection
with a consolidation or merger in which the Company is the continuing corporation), cash (other than a regular quarterly cash dividend out of the earnings or retained earnings of the Company), assets (other than a dividend payable in Preferred
Stock, but including any dividend payable in stock other than Preferred Stock) or evidences of indebtedness, or of subscription rights or warrants (excluding those referred to in Section 11(b) hereof), the Purchase Price to be in effect
after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the Current Market Price (as determined pursuant to
Section 11(d) hereof) per share of Preferred Stock on such record date, less the fair market value (as determined in good faith by the Board, whose determination shall be described in a statement filed with the Rights Agent and shall be
binding on the Rights Agent and the holders of the Rights) of the portion of the cash, assets or evidences of indebtedness so to be distributed or of such subscription rights or warrants applicable to a share of Preferred Stock, and the denominator
of which shall be such Current Market Price (as determined pursuant to Section 11(d) hereof) per share of Preferred Stock. Such adjustments shall be made successively whenever such a record date is fixed, and in the event that such
distribution is not so made, the Purchase Price shall be adjusted to be the Purchase Price which would have been in effect if such record date had not been fixed. 
 (d) (i) For the purpose of any computation hereunder, other than computations made pursuant to Section 11(a)(iii) hereof, 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 for the thirty (30) consecutive Trading Days immediately prior to such date, and for purposes of computations made pursuant to Section 11(a)(iii) hereof, 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 for the ten (10) consecutive Trading Days immediately following such date; provided,
however, that in the event that the Current Market Price per share of the Common Stock is determined during a period following the 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 convertible into shares of such Common Stock (other than the Rights), or (B) any subdivision, combination, consolidation, reverse stock split or reclassification of such Common Stock, and the
ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination, consolidation, reverse stock split or reclassification shall not have occurred prior to the commencement of the requisite thirty
(30) Trading Day or ten (10) Trading Day period, as set forth above, 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, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to
securities listed or admitted to trading on Nasdaq or, if the shares of 

  

 20 

 
Common Stock are not then listed or admitted to trading on Nasdaq, as reported in the principal consolidated transaction reporting system with respect to
securities listed on the principal national securities exchange on which the shares of Common Stock are listed or admitted to trading or, if the shares of Common Stock are not then 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 any 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. If on any such date no market maker is making a market in the Common Stock, the fair
value of such shares on such date as determined in good faith by the Board shall be used. The term “Trading Day” shall mean a day on which the principal national securities exchange 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 then listed or admitted to trading on any national securities exchange, a Business Day. If the Common Stock is not publicly held or not
so listed or traded, Current Market Price per share shall mean the fair value per share as determined in good faith by the Board, whose determination shall be described in a statement filed with the Rights Agent and shall be 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 clause (i) of this Section 11(d) (other than the last sentence thereof). If the Current Market Price per share of Preferred Stock cannot be determined in the manner provided
above or if the Preferred Stock is not publicly held or listed or traded in a manner described in clause (i) of this Section 11(d), the Current Market Price per share of Preferred Stock shall be conclusively deemed to be an amount equal to
1,000 (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 the Common Stock. If neither the Common Stock nor the Preferred Stock is publicly held or so listed or traded, Current Market Price per share of the Preferred Stock shall mean the fair value per share as determined in good faith by the Board,
whose determination shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes. 
 (e) Anything
herein to the contrary notwithstanding, no adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at least one percent (1%) in the Purchase Price; provided, however, that
any adjustments which by reason of this Section 11(e) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent
or 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. Notwithstanding the first sentence of this Section 11(e), any adjustment required by this
Section 11 shall be made no later than the earlier of (i) three (3) years from the date of the transaction which mandates such adjustment, or (ii) the Expiration Date. 
 (f) If as a result of an adjustment made pursuant to Section 11(a)(ii) or Section 13(a) hereof, the holder of any Right thereafter
exercised shall become entitled to receive 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 Sections 11(a), (b), (c), (e), (g), (h), (i), (j), (k) and (m), and the provisions of Sections 7, 9,
10, 13 and 14 hereof with respect to the Preferred Stock shall apply on like terms to any such other shares. 
  

 21 

 (g) All Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price
hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the number of one one-thousandths of a share of Preferred Stock purchasable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as
provided herein. 
 (h) Unless the Company shall have exercised its election as provided in Section 11(i), upon each adjustment of the
Purchase Price as a result of the calculations made in Sections 11(b) and (c), each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that
number of one one-thousandths of a share of Preferred Stock (calculated to the nearest one-millionth) obtained by (i) multiplying (x) the number of one one-thousandths of a share covered by a Right immediately prior to this adjustment, by
(y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price, and (ii) dividing the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price. 
 (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-thousandths of a share of Preferred Stock purchasable upon the exercise of a Right. Each of the Rights outstanding after the adjustment in the number of Rights shall be exercisable for the number of one one-thousandths of a share
of Preferred Stock for which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become that number of Rights (calculated to the nearest one-ten-thousandth)
obtained by dividing the Purchase Price in effect immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment of the Purchase Price. The Company shall make a public announcement of its election
to adjust the number of Rights, indicating the record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. This record date may be the date on which the Purchase Price is adjusted or any day thereafter, but,
if the Rights Certificates have been issued, shall be at least ten (10) days later than the date of the public announcement. If Rights Certificates have been issued, upon each adjustment of the number of Rights pursuant to this
Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to holders of record of Rights Certificates on such record date Rights Certificates evidencing, subject to Section 14 hereof, the additional Rights to
which such holders shall be entitled as a result of such adjustment, or, at the option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Rights Certificates held by such holders prior to
the date of adjustment, and upon surrender thereof, if required by the Company, new Rights Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment. Rights 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 Rights 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-thousandths of a share of Preferred Stock issuable upon the exercise of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express the Purchase Price per one one-thousandth of a share and the number of one
one-thousandth of a share which were expressed in the initial Rights Certificates issued hereunder. 
  

 22 

 (k) Before taking any action that would cause an adjustment reducing the Purchase Price below the then
stated value, if any, of the number of one one-thousandths 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-thousandths of a share of Preferred Stock at such adjusted Purchase Price. 
 (l) In any case in which this Section 11 shall require that an adjustment in the Purchase Price be made effective as of a record date for a specified event, the Company may elect to defer until the occurrence of
such event the issuance to the holder of any Right exercised after such record date the number of one one-thousandths of a share of Preferred Stock and other capital stock or securities of the Company, if any, issuable upon such exercise over and
above the number of one one-thousandths of a share of Preferred Stock and other capital stock or securities of the Company, if any, issuable upon such exercise on the basis of the Purchase Price in effect prior to such adjustment; provided,
however, that the Company shall deliver to such holder a due bill or other appropriate instrument evidencing such holder’s right to receive such additional shares (fractional or otherwise) or securities upon the occurrence of the event
requiring such adjustment. 
 (m) Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make
such reductions in the Purchase Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that the Board, in its good faith judgment, shall determine to be advisable in order that any
(i) consolidation or subdivision of the Preferred Stock, (ii) issuance wholly for cash of any shares of Preferred Stock at less than the Current Market Price, (iii) issuance wholly for cash of shares of Preferred Stock or securities
which by their terms are convertible into or exchangeable for shares of Preferred Stock, (iv) stock dividends or (v) issuance of rights, options or warrants referred to in this Section 11, hereafter made by the Company to holders of
its Preferred Stock shall not be taxable to such stockholders. 
 (n) The Company covenants and agrees that it shall not, at any time after
the Distribution Date, (i) consolidate with any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof), (ii) merge with or into any other Person (other than a Subsidiary of the
Company in a transaction which complies with Section 11(o) hereof), or (iii) other than pursuant to a pro rata dividend and/or distribution to all of the then current holders of Common Stock, sell or transfer (or permit any Subsidiary to
sell or transfer), in one transaction, or a series of related transactions, assets, cash flow or earning power aggregating more than fifty percent (50%) of the assets, cash flow or earning power of the Company and its Subsidiaries (taken as a
whole) to any other Person or Persons (other than the Company and/or any of its Subsidiaries in one or more transactions each of which complies with Section 11(o) hereof), if (x) at the time of or immediately after such consolidation,
merger or sale there are any rights, warrants or other instruments or securities outstanding or agreements in effect 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 or sale, the stockholders of the Person who constitutes, or would constitute, the “Principal Party” for purposes of Section 13(a) hereof shall have received a
distribution of Rights previously owned by such Person or any of its Affiliates and Associates. 
 (o) The Company covenants and agrees that,
after the Distribution Date, it will not, except as permitted by Section 23 or Section 27 hereof, take (or permit any Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable that such action will
diminish substantially or otherwise eliminate the benefits intended to be afforded by the Rights. 
  

 23 

 (p) Anything in this Agreement to the contrary notwithstanding, in the event that the Company shall at
any time after the Rights Dividend Declaration Date and prior to the Distribution Date (i) declare a dividend on the outstanding shares of Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding shares of Common
Stock, or (iii) combine the outstanding shares of 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 but prior to the Distribution
Date, shall be proportionately adjusted so that the number of Rights thereafter associated with each share of Common Stock following any such event shall equal the result obtained by multiplying the number of Rights associated with each share of
Common Stock immediately prior to such event by a fraction the numerator of which shall be the total number of shares of Common Stock outstanding immediately prior to the occurrence of the event and the denominator of which shall be the total number
of shares of Common Stock outstanding immediately following the occurrence of such event. 
 Section 12. Certificate of Adjusted
Purchase Price or Number of Shares. Whenever an adjustment is made as provided in Section 11 and Section 13 hereof, the Company shall (a) promptly prepare a certificate setting forth such adjustment and a brief statement of the
facts accounting for such adjustment, (b) promptly file with the Rights Agent, and with each transfer agent for the Preferred Stock and the Common Stock, a copy of such certificate and (c) if a Distribution Date has occurred, mail a brief
summary thereof to each holder of a Rights Certificate (or, if prior to the Distribution Date, to each holder of a share of Common Stock) in accordance with Section 26 hereof. The Rights Agent shall be fully protected in relying on any such
certificate and on any adjustment therein contained. 
 Section 13. Consolidation, Merger or Sale or Transfer of Assets, Cash Flow or
Earning Power. 
 (a) In the event that, following the time any Person becomes an Acquiring Person, directly or indirectly, (x) the
Company shall consolidate with, or merge with and into, any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof), and the Company shall not be the continuing or surviving corporation of
such consolidation or merger, (y) any Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof) shall consolidate with, or merge with or into, the Company, and the Company shall be the
continuing or surviving corporation of such consolidation or merger and, in connection with such consolidation or merger, all or part of the outstanding shares of Common Stock shall be changed into or exchanged for stock or other securities of any
other Person or cash or any other property, or (z) the Company shall, other than pursuant to a pro rata dividend and/or distribution to all of the then current holders of Common Stock, sell or otherwise transfer (or one or more of its
Subsidiaries shall sell or otherwise transfer), in one transaction or a series of related transactions, assets, cash flow or earning power aggregating more than fifty percent (50%) of the assets, cash flow or earning power of the Company and
its Subsidiaries (taken as a whole) to any Person or Persons (other than the Company or any Subsidiary of the Company in one or more transactions each of which complies with Section 11(o) hereof), then, and in each such case (except as may be
contemplated by Section 13(d) hereof), proper provision shall be made so that: (i) each holder of a Right, except as provided in Section 7(e) hereof, shall thereafter have the right to receive, upon the exercise thereof at the
then current Purchase Price in accordance with the terms of this 

  

 24 

 
Agreement, such number of validly authorized and issued, fully paid, nonassessable and freely tradable shares of Common Stock of the Principal Party (as such
term is hereinafter defined), not subject to any liens, encumbrances, rights of first refusal, pre-emptive rights or any other adverse claims of any nature whatsoever, as shall be equal to the result obtained by (1) multiplying the then current
Purchase Price by the number of one one-thousandths of a share of Preferred Stock for which a Right is exercisable immediately prior to the first occurrence of a Section 13 Event (or, if a Section 11(a)(ii) Event has occurred prior to
the first occurrence of a Section 13 Event, multiplying the number of such one one-thousandths of a share for which a Right was exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event by the Purchase Price
in effect immediately prior to such first occurrence of a Section 11(a)(ii) Event), and (2) dividing that product (which, following the first occurrence of a Section 13 Event, shall be referred to as the “Purchase
Price” for each Right and for all purposes of this Agreement) by fifty percent (50%) of the Current Market Price (determined pursuant to Section 11(d)(i) hereof) per share of the Common Stock of such Principal Party on
the date of consummation of such Section 13 Event; (ii) such Principal Party shall thereafter be liable for, and shall assume, by virtue of such Section 13 Event, all the obligations and duties of the Company pursuant to this
Agreement; (iii) the term “Company” shall, for all purposes of this Agreement, thereafter be deemed to refer to such Principal Party, it being specifically intended that the provisions of Section 11 hereof shall
apply only to such Principal Party following the first occurrence of a Section 13 Event; (iv) such Principal Party shall take such steps (including, but not limited to, the reservation of a sufficient number of shares of its Common Stock)
in connection with the consummation of any such transaction as may be necessary to assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to its shares of Common Stock thereafter deliverable
upon the exercise of the Rights; provided, however, that upon the subsequent occurrence of any merger, consolidation, sale of all or substantially all assets, recapitalization, reclassification of shares, reorganization or other
extraordinary transaction in respect of such Principal Party, each holder of a Right shall thereupon be entitled to receive, upon exercise of a Right and payment of the Purchase Price, such cash, shares, rights, warrants and other property which
such holder would have been entitled to receive had he, at the time of such transaction, owned the shares of Common Stock of the Principal Party purchasable upon the exercise of a Right, and such Principal Party shall take such steps (including, but
not limited to, reservation of shares of stock) as may be necessary to permit the subsequent exercise of the Rights in accordance with the terms hereof for such cash, shares, rights, warrants and other property; and (v) the provisions of
Section 11(a)(ii) hereof shall be of no effect following the first occurrence of any Section 13 Event. 
 (b) “Principal
Party” shall mean: 
 (i) in the case of any transaction described in clause (x) or (y) of the first sentence of
Section 13(a) hereof, the Person that is the issuer of any securities into which shares of Common Stock of the Company are converted in such merger or consolidation or, if no securities are so issued, the Person that is the other party to
such merger or consolidation; and 
 (ii) in the case of any transaction described in clause (z) of the first sentence of
Section 13(a) hereof, the Person that is the party receiving the greatest portion of the assets, cash flow or earning power transferred pursuant to such transaction or transactions; 
 Provided, however, that in any such case, (1) if the Common Stock of such Person (who, but for this proviso, would be the Principal
Party) is not at such time and has not been continuously over the preceding twelve (12) month period registered under Section 12 of the Exchange Act, and such Person is a direct or indirect Subsidiary of another Person the Common 

  

 25 

 
Stock of which is and has been so registered, “Principal Party” shall refer to such other Person; and (2) in case such Person is
a Subsidiary, directly or indirectly, of more than one other Person, the Common Stock of two or more of which are and have been so registered, “Principal Party” shall refer to whichever of such other Persons is the issuer of the Common
Stock having the greatest aggregate market value. 
 (c) The Company shall not be obligated to, and shall not, consummate any such
consolidation, merger, sale or transfer unless the Principal Party shall have a sufficient number of authorized shares of its Common Stock which have not been issued or reserved for issuance to permit the exercise in full of the Rights in accordance
with this Section 13 and unless prior thereto the Company and such Principal Party shall have executed and delivered to the Rights Agent a supplemental agreement providing for the terms set forth in paragraphs (a) and (b) of this
Section 13 and further providing that, as soon as practicable after the date of any consolidation, merger or sale of assets mentioned in paragraph (a) of this Section 13, the Principal Party will: 
 (i) prepare and file a registration statement under the Act, with respect to the Rights and the securities purchasable upon exercise of the Rights on an
appropriate form, and will use its best efforts to cause such registration statement to (A) become effective as soon as practicable after such filing and (B) remain effective (with a prospectus at all times meeting the requirements of the
Act) until the Expiration Date; 
 (ii) take all such other action as may be necessary to enable the Principal Party to issue the securities
purchasable upon exercise of the Rights, including but not limited to the registration or qualification of such securities under all requisite securities laws of jurisdictions of the various states and the listing of such securities on such
exchanges and trading markets as may be necessary or appropriate; and 
 (iii) will deliver to holders of the Rights historical financial
statements for the Principal Party and each of its Affiliates which comply in all respects with the requirements for registration on Form 10 (or any successor form) under the Exchange Act. 
 The provisions of this Section 13 shall similarly apply to successive mergers or consolidations or sales or other transfers. In the event that a
Section 13 Event shall occur at any time after the occurrence of a Section 11(a)(ii) Event, the Rights which have not theretofore been exercised shall thereafter become exercisable in the manner described in Section 13(a).

 Section 14. Fractional Rights and Fractional Shares. 
 (a) The Company shall not be required to issue fractions of Rights, except prior to the Distribution Date as provided in Section 11(p) hereof, or to
distribute Rights Certificates which evidence fractional Rights. In lieu of such fractional Rights, the Company shall pay to the registered holders of the Rights Certificates with regard to which such fractional Rights would otherwise be issuable,
an amount in cash equal to the same fraction of the current market value of a whole Right. For purposes of this Section 14(a), the current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately
prior to the date on which such fractional Rights would have been otherwise issuable. The closing price of the Rights for any Trading Day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the
closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on Nasdaq or any 

  

 26 

 
other national securities exchange, or if the Rights are not then listed or admitted to trading on Nasdaq or any other 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, if on any such date the Rights are not quoted by any such organization, the average of the closing bid and asked prices as furnished
by a professional market maker making a market in the Rights, selected by the Board. If on any such date no such market maker is making a market in the Rights, the fair value of the Rights on such date as determined in good faith by the Board shall
be used. 
 (b) The Company shall not be required to issue fractions of shares of Preferred Stock (other than fractions which are integral
multiples of one one-thousandth 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 integral multiples of one one-thousandth of
a share of Preferred Stock). In lieu of fractional shares of Preferred Stock that are not integral multiples of one one-thousandth of a share of Preferred Stock, the Company may pay to the registered holders of Rights Certificates at the time such
Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of one one-thousandth of a share of Preferred Stock. For purposes of this Section 14(b), the current market value of one
one-thousandth of a share of Preferred Stock shall be one one-thousandth of the closing price of a share of Preferred Stock (as determined pursuant to Section 11(d)(ii) hereof) for the Trading Day immediately prior to the date of such
exercise. 
 (c) Following the occurrence of a Triggering Event, 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 may pay to the registered holders of Rights Certificates at the time such
Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of one (1) share of Common Stock. For purposes of this Section 14(c), the current market value of one share of Common Stock
shall be the closing price per share of Common Stock (as determined pursuant to Section 11(d)(i) hereof) on the Trading Day immediately prior to the date of such exercise. 
 (d) Each holder of a Right, by virtue of the issuance of such Right to such holder pursuant to this Agreement, expressly waives such holder’s right
to receive any fractional Rights or any fractional shares upon exercise of a Right, except as permitted by this Section 14. 
 Section 15. Rights of Action. All rights of action in respect of this Agreement, excepting the rights of action given to the Rights Agent under Section 18 hereof, are vested in the respective registered holders of the
Rights Certificates (and, prior to the Distribution Date, the registered holders of the Common Stock); and any registered holder of any Rights Certificate (or, prior to the Distribution Date, of the Common Stock), without the consent of the Rights
Agent or of the holder of any other Rights Certificate (or, prior to the Distribution Date, of the Common Stock), may, in the holder’s own behalf and for the holder’s own benefit, enforce, and may institute and maintain any suit, action or
proceeding against the Company to enforce, or otherwise act in respect of, the holder’s right to exercise the Rights evidenced by such Rights Certificate in the manner provided in such Rights Certificate and in this Agreement. Without limiting
the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this Agreement and shall be entitled to specific performance of
the obligations hereunder and injunctive relief against actual or threatened violations of the obligations hereunder of any Person subject to this Agreement. 
  

 27 

 Section 16. Agreement of Rights Holders. Every holder of a Right, by virtue of the issuance
of such Right to such holder pursuant to this Agreement, 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 transferable only in connection with the transfer of shares of Common Stock; 
 (b) after the Distribution Date, the Rights Certificates are transferable only on the registry books of the Rights Agent if surrendered at the principal office or offices of the Rights Agent designated for such
purposes, duly endorsed or accompanied by a proper instrument of transfer and with the appropriate forms and certificates duly completed and fully executed; 
 (c) subject to Section 6(a) and Section 7(f) hereof, the Company and the Rights Agent may deem and treat the person in whose name a Rights Certificate (or, prior to the Distribution Date, the
associated balance indicated in the book-entry account system of the transfer agent for the Common Stock or, in the case of certificated shares, the associated Common Stock certificate) is registered as the absolute owner thereof and of the Rights
evidenced thereby (notwithstanding any notations of ownership or writing on the Rights Certificates or the associated balance indicated in the book-entry account system of the transfer agent for the Common Stock or, in the case of certificated
shares, the associated Common Stock certificate, 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 7(e) hereof,
shall be required to 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, 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, however, the Company must use its best efforts to have any such order, decree or ruling lifted or otherwise overturned as soon as possible.

 Section 17. Rights Certificate Holder Not Deemed a Stockholder. No holder, as such, of any Rights Certificate shall be
entitled to vote, receive dividends or be deemed for any purpose the holder of the number of one one-thousandths of a share of Preferred Stock or any other securities of the Company which may at any time be issuable on the exercise of the Rights
represented thereby, nor shall anything contained herein or in any Rights Certificate be construed to confer upon the holder of any Rights Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for the election
of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in Section 25
hereof), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Rights Certificate shall have been exercised in accordance with the provisions hereof. 
  

 28 

 Section 18. Concerning the Rights Agent. 
 (a) The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time, on demand of
the Rights Agent, its reasonable expenses and counsel fees and disbursements and other disbursements incurred in the preparation, delivery, amendment, administration and execution of this Agreement and the exercise and performance of its duties
hereunder. The Company also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, damage, judgment, fine, penalty, claim, demand, settlement, cost or expense, incurred without gross negligence, bad faith or
willful misconduct (each as determined by a court of competent jurisdiction) on the part of the Rights Agent, for anything done or omitted by the Rights Agent in connection with the acceptance and administration of this Agreement, including
reasonable attorneys’ fees and expenses and the costs and expenses of defending against any claim of liability in the premises. 
 (b)
The Rights Agent shall be protected and shall incur no liability for or in respect of any action taken, suffered or omitted by it in connection with its administration of this Agreement in reliance upon any Rights Certificate or the balance
indicated in the book-entry account system of the transfer agent for the Common Stock or, in the case of certificated shares, certificate for Common Stock, or for other securities of the Company, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or other paper or document believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper Person or
Persons. 
 Section 19. Merger or Consolidation or Change of Name of Rights Agent. 
 (a) Any Person into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any Person resulting from
any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to the corporate trust, stock transfer or other stockholder services business of the Rights Agent or any successor Rights
Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto; but only if such Person would be eligible for appointment as a successor
Rights Agent under the provisions of Section 21 hereof. In case at the time such successor Rights Agent shall succeed to the agency created by this Agreement, any of the Rights Certificates shall have been countersigned but not delivered, any
such successor Rights Agent may adopt the countersignature of a predecessor Rights Agent and deliver such Rights Certificates so countersigned; and in case at that time any of the Rights Certificates shall not have been countersigned, any successor
Rights Agent may countersign such Rights Certificates either in the name of the predecessor or in the name of the successor Rights Agent; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates
and in this Agreement. 
 (b) In case at any time the name of the Rights Agent shall be changed and at such time any of the Rights
Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Rights Certificates so countersigned; and in case at that time any of the Rights Certificates shall not
have been countersigned, the Rights Agent may countersign such Rights Certificates either in its prior name or in its changed name; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in
this Agreement. 
  

 29 

 Section 20. Duties of Rights Agent. The Rights Agent undertakes the duties and obligations
imposed by this Agreement upon the following terms and conditions, by all of which the Company and the holders of Rights Certificates, by their acceptance thereof, shall be bound: 
 (a) The Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the opinion of such counsel shall be full and complete
authorization and protection to the Rights Agent as to any action taken or omitted by it in good faith and in accordance with such opinion. 
 (b) Whenever in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter (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 or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved
and established by a certificate signed by the Chairman of the Board, the Chief Executive Officer, the President, any Vice President, the Treasurer/Chief Financial Officer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the
Company and delivered to the Rights Agent; and such certificate shall be full authorization to the Rights Agent for any action taken or suffered in good faith by it under the provisions of this Agreement in reliance upon such certificate.

 (c) The Rights Agent shall be liable hereunder only for its own gross negligence, bad faith or willful misconduct (each as determined by a
court of competent jurisdiction). 
 (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 Rights Certificates or be required to verify the same (except as to its countersignature on such Rights Certificates), but all such statements and recitals are and shall be deemed to have been made by the
Company only. 
 (e) The Rights Agent shall not be under any responsibility in respect of the validity of this Agreement or the execution and
delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Rights Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Rights Certificate; nor shall it be responsible for any adjustment required under the provisions of Section 11, Section 13 or Section 24 hereof or responsible for the manner,
method or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment (except with respect to the exercise of Rights evidenced by Rights Certificates after actual notice of any such adjustment);
nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares of Common Stock or Preferred Stock to be issued pursuant to this Agreement or any Rights Certificate or as to
whether any shares of Common Stock or Preferred Stock will, when so issued, be validly authorized and issued, fully paid and nonassessable. 
 (f) The Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by the
Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement. 
  

 30 

 (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, the Secretary, any Assistant Secretary, the Treasurer/Chief Financial Officer or any Assistant Treasurer of the
Company, and to apply to such officers for advice or instructions in connection with its duties, and it shall not be liable for any action taken or suffered to be taken by it in good faith in accordance with instructions of any such officer.

 (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 it were not Rights Agent under
this Agreement. Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other 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 or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable
for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company resulting from any such act, default, neglect or misconduct; provided, however, that reasonable care was exercised in the
selection and continued employment thereof. 
 (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 (other than internal costs incurred by the Rights Agent in providing services to the Company in the ordinary course of its business as Rights Agent)
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 Rights Certificate surrendered to the Rights Agent for exercise or transfer, the certificate attached to the form of
assignment or form of election to purchase, as the case may be, has either not been completed or indicates an affirmative response to clause 1 and/or 2 thereof, the Rights Agent shall not take any further action with respect to such requested
exercise or transfer without first consulting with the Company. 
 Section 21. Change of Rights Agent. The Rights Agent or any
successor Rights Agent may resign and be discharged from its duties under this Agreement upon thirty (30) days’ notice in writing mailed to the Company, and to each transfer agent of the Common Stock and Preferred Stock, by registered or
certified mail, and, if such resignation occurs after the Distribution Date, to the registered holders of the Rights Certificates by first-class mail. The Company may remove the Rights Agent or any successor Rights Agent upon thirty
(30) days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of the Common Stock and Preferred Stock, by registered or certified mail, and, if such removal occurs after
the Distribution Date, to the holders of the Rights Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor to the Rights Agent. If the
Company shall fail to make such appointment within a period of thirty (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 Rights Certificate (who shall, with such notice, submit his, her or its Rights Certificate for inspection by the 

  

 31 

 
Company), then any registered holder of any Rights 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 legal business entity organized and doing business under the laws of the United States or any State thereof, in good standing, having an office in
the State of New York, which is authorized under such laws to exercise corporate trust, stock transfer or stockholder services powers and which has at the time of its appointment as Rights Agent a combined capital and surplus of at least
$100,000,000 or (b) an affiliate of a legal business entity described in clause (a) of this sentence. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been
originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any further assurance,
conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment, the Company shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the Common Stock and the
Preferred Stock, and, if such appointment occurs after the Distribution Date, mail a notice thereof in writing to the registered holders of the Rights Certificates. Failure to give any notice provided for in this Section 21, however, or any
defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 
 Section 22. Issuance of New Rights Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary,
the Company may, at its option, issue new Rights Certificates evidencing Rights in such form as may be approved by the Board to reflect any adjustment or change in the Purchase Price and the number or kind or class of shares or other securities or
property purchasable under the Rights Certificates made in accordance with the provisions of this Agreement. In addition, in connection with the issuance or sale of shares of Common Stock following the Distribution Date and prior to the redemption
or expiration of the Rights, the Company (a) shall, with respect to shares of Common Stock so issued or sold pursuant to the exercise of stock options or under any employee plan or arrangement, granted or awarded as of the Distribution Date, or
upon the exercise, conversion or exchange of securities hereinafter issued by the Company, and (b) may, in any other case, if deemed necessary or appropriate by the Board, issue Rights Certificates representing the appropriate number of Rights
in connection with such issuance or sale; provided, however, that (i) no such Rights Certificate shall be issued if, and to the extent that, the Company shall be advised by counsel that such issuance would create a significant
risk of material adverse tax consequences to the Company or the Person to whom such Rights Certificate would be issued, and (ii) no such Rights Certificate shall be issued if, and to the extent that, appropriate adjustment shall otherwise have
been made in lieu of the issuance thereof. 
 Section 23. Redemption and Termination. 
 (a) The Board may, at its option, at any time prior to the earlier of (i) the Close of Business on the tenth (10th) Business Day following the
Stock Acquisition Date (or, if the Stock Acquisition Date shall have occurred prior to the Record Date, the Close of Business on the tenth (10th) Business Day following the Record Date) (the “Redemption Period”), or
(ii) the Final Expiration Date, cause the Company to redeem all but not less than all of the then outstanding Rights at a redemption price of $0.001 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”). Notwithstanding anything contained in this Agreement to the contrary, the Rights
shall not be exercisable after the first occurrence of a Section 11(a)(ii) Event until such time as the Company’s right of redemption hereunder has expired. 

  

 32 

 
The Company may, at its option, pay the Redemption Price in cash, shares of Common Stock (based on the Current Market Price, as defined in
Section 11(d)(i) hereof, of the Common Stock at the time of redemption) or any other form of consideration deemed appropriate by the Board. 
 (b) If the Company receives a Qualified Offer and the Board has not redeemed the outstanding Rights in accordance with Section 23(a) above or exempted such offer from the terms of this Agreement or called a
special meeting of stockholders for the purpose of voting on whether or not to exempt such Qualified Offer from the terms of this Agreement, in each case by the end of the ninety (90) Business Day period following the commencement of such
Qualified Offer, and if the Company receives, not earlier than ninety (90) Business Days nor later than one hundred twenty (120) Business Days following the commencement of such Qualified Offer, a written notice complying with the terms of
this Section 23(b) (the “Special Meeting Notice”), properly executed by the holders of record (or their duly authorized proxy) of ten percent (10%) or more of the shares of Common Stock then outstanding (excluding
shares of Common Stock beneficially owned by the Person making the Qualified Offer and such Person’s Affiliates and Associates), directing the Board to submit to a vote of stockholders at a special meeting of the stockholders of the Company (a
“Special Meeting”) a resolution authorizing the redemption of all, but not less than all, of the then outstanding Rights at the Redemption Price (the “Redemption Resolution”), then the Board shall take
such actions as are necessary or desirable to cause the Redemption Resolution to be submitted to a vote of stockholders within ninety (90) Business Days following receipt by the Company of the Special Meeting Notice (the “Special
Meeting Period”), including by including a proposal relating to adoption of the Redemption Resolution in the proxy materials of the Company for the Special Meeting; provided, however, that if the Company, at any time
during the Special Meeting Period and prior to a vote on the Redemption Resolution, enters into a Definitive Acquisition Agreement, the Special Meeting Period may be extended (and any Special Meeting called in connection therewith may be cancelled)
if the Redemption Resolution will be separately submitted to a vote at the same meeting as the Definitive Acquisition Agreement. For purposes of a Special Meeting Notice, the record date for determining eligible holders of record of the Common Stock
shall be the ninetieth (90th) Business Day following the commencement of a Qualified Offer. Any Special Meeting Notice must be delivered to the Secretary of the Company at the principal executive offices of the Company and must set forth, as to
the stockholders of record executing such Special Meeting Notice, (i) the name and address of such stockholders, as they appear on the Company’s books and records, (ii) the number of shares of Common Stock that are owned of record by
each of such stockholders and (iii) in the case of Common Stock that is owned beneficially by another Person, an executed certification by the holder of record that such holder has executed such Special Meeting Notice only after obtaining
instructions to do so from such beneficial owner. Subject to the requirements of applicable law, the Board may take a position in favor of or opposed to the adoption of the Redemption Resolution, or no position with respect to the Redemption
Resolution, as it determines to be appropriate in the exercise of its fiduciary duties. In the event that (A) no Person has become an Acquiring Person prior to the effective date of redemption referred to below in this sentence, (B) the
Qualified Offer continues to be a Qualified Offer prior to the last day of the Special Meeting Period (the “Outside Meeting Date”) and (C) either (1) the Special Meeting is not held on or prior to the ninetieth
(90th) Business Day following receipt of the Special Meeting Notice or (2) at the Special Meeting at which a quorum is present, the holders of a majority of the shares of Common Stock outstanding as of the record date for the Special
Meeting selected by the Board (excluding shares of Common Stock beneficially owned by the Person making the Qualified Offer and such Person’s Affiliates and Associates), shall vote in favor of the Redemption Resolution, then all of the Rights
shall be deemed redeemed at the Redemption Price by such failure to hold the Special Meeting or as a result of the adoption of the Redemption Resolution by the stockholders of the Company (or the 

  

 33 

 
Board shall take such other action as may be necessary to prevent the existence of the Rights from interfering with the consummation of the Qualified Offer),
such redemption to be effective, as the case may be, (x) as of the close of business on the Outside Meeting Date if a Special Meeting is not held on or prior to such date or (y) if a Special Meeting is held on or prior to the Outside
Meeting Date, as of the date on which the results of the vote adopting the Redemption Resolution at the Special Meeting are certified as official by the appointed inspectors of election for the Special Meeting. 
 (c) Immediately upon the action of the Board ordering the redemption of the Rights pursuant to Section 23(a) (or at such later time as the Board may
establish for the effectiveness of such redemption) or the effectiveness of a redemption of the Rights pursuant to Section 23(b), in either case, without any further action and without any notice, the right to exercise the Rights will terminate
and the only right thereafter of the holders of Rights shall be to receive the Redemption Price for each Right so held. The Company shall promptly give public notice of any such redemption (with prompt notice thereof to the Rights Agent);
provided, however, that the failure to give, or any defect in, any such notice shall not affect the legality or validity of such redemption. Within ten (10) Business Days after such action of the Board or the stockholders so
ordering the redemption of the Rights pursuant to Section 23(a) or Section 23(b), respectively, the Company shall mail a notice of redemption to all the holders of the then outstanding Rights at their last addresses as they appear upon the
registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the Common Stock. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder
receives the notice. Each such notice of redemption shall state the method by which the payment of the Redemption Price will be made. 
 Section 24. Exchange. 
 (a) The Board may, at its option, at any time after any Person becomes an Acquiring Person,
exchange all or part of the then outstanding and exercisable Rights (which shall not include Rights that have become void pursuant to the provisions of Section 7(e) hereof) for Common 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”). Notwithstanding
the foregoing, the Board shall not be empowered to effect such exchange at any time after any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan of the Company or any such Subsidiary, or any entity holding
Common Stock for or pursuant to the terms of any such plan), together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of fifty percent (50%) or more of the Common Stock then outstanding. 
 (b) Immediately upon the action of the Board ordering the exchange of any Rights pursuant to paragraph (a) of this Section 24 and without any
further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights shall be to receive that number of shares of Common Stock equal to the number of such Rights held by
such holder multiplied by the Exchange Ratio. The Company shall promptly give public notice of any such exchange; provided, however, that the failure to give, or any defect in, such notice shall not affect the validity of such
exchange. The Company promptly shall mail a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear upon the registry books of the Rights Agent. Any notice 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 

  

 34 

 
state the method by which the exchange of the Common Stock for Rights will be effected and, in the event of any partial exchange, the number of Rights which
will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which have become void pursuant to the provisions of Section 7(e) hereof) held by each holder of Rights. 
 (c) In any exchange pursuant to this Section 24, the Company, at its option, may substitute Preferred Stock (or Equivalent Preferred Stock, as such
term is defined in paragraph (b) of Section 11 hereof) for Common Stock exchangeable for Rights, at the initial rate of one one-thousandth of a share of Preferred Stock (or Equivalent Preferred Stock) for each share of Common Stock, as
appropriately adjusted to reflect stock splits, stock dividends and other similar transactions after the date hereof. 
 (d) In the event
that there shall not be sufficient shares of Common Stock issued but not outstanding or authorized but unissued to permit any exchange of Rights as contemplated in accordance with this Section 24, the Company shall take all such action as may
be necessary to authorize additional shares of Common Stock for issuance upon exchange of the Rights. 
 (e) The Company shall not be
required to issue fractions of shares of Common Stock or, in the case of certificated shares, to distribute certificates which evidence fractional shares of Common Stock. In lieu of such fractional shares of Common Stock, there shall be paid to the
registered holders of the Rights Certificates with regard to which such fractional shares of Common Stock would otherwise be issuable, an amount in cash equal to the same fraction of the current market value of a whole share of Common Stock. For the
purposes of this paragraph (e), the current market value of a whole share of Common Stock shall be the closing price of a share of Common Stock (as determined pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day
immediately prior to the date of exchange pursuant to this Section 24. 
 Section 25. Notice of Certain Events. 

(a) In case the Company shall propose, at any time after the Distribution Date, (i) to pay any dividend payable in stock of any class to the
holders of Preferred Stock or to make any other distribution to the holders of Preferred Stock (other than a regular quarterly cash dividend out of earnings or retained earnings of the Company), or (ii) to offer to the holders of 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, or (iii) to effect any reclassification of its Preferred Stock (other
than a reclassification involving only the subdivision of outstanding shares of Preferred Stock), or (iv) to effect any consolidation or merger into or with any other Person (other than a Subsidiary of the Company in a transaction which
complies with Section 11(o) hereof), or, other than pursuant to a pro rata dividend and/or distribution by the Company to all of the then current holders of Common Stock, to effect any sale or other transfer (or to permit one or more of its
Subsidiaries to effect any sale or other transfer), in one transaction or a series of related transactions, of more than fifty percent (50%) of the assets, cash flow or earning power of the Company and its Subsidiaries (taken as a whole) to any
other Person or Persons (other than the Company and/or any of its Subsidiaries in one or more transactions each of which complies with Section 11(o) hereof), 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 Rights Certificate, to the extent feasible and in accordance with Section 26 hereof, a notice of such proposed action, which shall specify the record date for the purposes of such
stock dividend, distribution of rights or warrants, or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution, or winding up is to take 

  

 35 

 
place and the date of participation therein by the holders of the shares 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 clause (i) or (ii) above at least twenty (20) days prior to the record date for determining holders of the shares of Preferred Stock for purposes of such action, and in the case of any such
other action, at least twenty (20) days prior to the date of the taking of such proposed action or the date of participation therein by the holders of the shares of Preferred Stock, whichever shall be the earlier. 
 (b) In case any of the events set forth in Section 11(a)(ii) hereof shall occur, then, in any such case, (i) the Company shall as soon as
practicable thereafter give to each holder of a Rights Certificate, to the extent feasible and in accordance with Section 26 hereof, a notice of the occurrence of such event, which shall specify the event and the consequences of the event to
holders of Rights under Section 11(a)(ii) hereof, and (ii) all references in the preceding paragraph to Preferred Stock shall be deemed thereafter to refer to Common Stock and/or, if appropriate, other securities. 
 Notwithstanding anything to the contrary that may be contained in this Section 25 or elsewhere in this Agreement, the failure to give, or any defect
in, any notice required to be given pursuant to this Section 25 shall not affect the legality or validity of the transaction or event to which the notice requirement was applicable. 
 Section 26. Notices. Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Rights
Certificate to or on the Company shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing by the Rights Agent with the Company) as follows: 
 Collectors Universe, Inc. 
 1921 East Alton
Avenue 
 Santa Ana, California 92705 
 Attention: Chief Financial Officer 
 With a copy to: 
 Stradling Yocca Carlson & Rauth 
 660 Newport Center Drive, Suite 1600 
 Newport Beach, CA 92660 
 Attention: Ben A.
Frydman, Esq. 
 Subject to the provisions of Section 21, any notice or demand authorized by this Agreement to be given or made by the
Company or by the holder of any Rights Certificate to or on the Rights Agent shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing by the Rights Agent with the Company)
as follows: 
 StockTrans, Inc 
 44 W. Lancaster Ave 
 Ardmore, PA 19003 
 Attention: 
 Notices or demands authorized by this Agreement to be given or made by the Company or the
Rights Agent to the holder of any Rights Certificate (or, if prior to the Distribution Date, to the holder of shares of Common Stock) shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the
address of such holder as shown on the registry books of the Company. 
  

 36 

 Section 27. Supplements and Amendments. The Company (by action of the Board) may and the
Rights Agent shall, if the Company so directs, supplement or amend any provision of this Agreement from time to time, and without the approval of any holders of shares of Common Stock or of shares of Preferred Stock, including, without limitation,
in order (i) to cure any ambiguity, (ii) to correct or supplement any provision contained herein which may be defective or inconsistent with any other provisions herein, (iii) to shorten or lengthen any time period hereunder, or
(iv) to change, amend, or supplement the provisions hereunder in any manner which the Company may deem necessary or desirable; provided, however, that from and after such time as any Person becomes an Acquiring Person, this
Agreement shall not be supplemented or amended in any manner that would adversely affect the interests of the holders of Rights (other than Rights that have become null and void pursuant to Section 7(e) hereof) as such or cause this Agreement
to become amendable other than in accordance with this Section 27; provided further, however, that no such supplement or amendment which obligates the Rights Agent to accept any duties and/or responsibilities not specified
currently in this Agreement shall become binding upon the Rights Agent unless and until the Rights Agent agrees to accept such additional duties and/or responsibilities in writing. Without limiting the foregoing, the Company (by action of the
Board), may at any time before any Person becomes an Acquiring Person amend this Agreement to make the provisions of this Agreement inapplicable to a particular transaction by which a Person might otherwise become an Acquiring Person or to otherwise
alter the terms and conditions of this Agreement as they may apply with respect to any such provision. Upon the delivery of a certificate from an appropriate officer of the Company which states that the proposed supplement or amendment is in
compliance with the terms of this Section 27, the Rights Agent shall execute such supplement or amendment; provided, that 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. Prior to the Distribution Date, the interests of the holders of Rights shall be deemed coincident with the interests of the holders of Common Stock. 
 Section 28. 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 29. Determinations and Actions by the
Board of Directors, etc. For all purposes of this Agreement, any calculation of the number of shares of Common Stock or any other class of capital 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) of the General Rules and Regulations under the Exchange Act. 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, without limitation, the right and power to (i) interpret the provisions of this Agreement, and (ii) make all determinations deemed necessary or advisable for the administration of this Agreement (including a determination to
redeem or not redeem 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, or any of the directors on the Board to any liability to
the holders of the Rights. 
 Section 30. 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 Rights 

  

 37 

 
Certificates (and, prior to the Distribution Date, registered holders of the 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 Rights Certificates (and, prior to the Distribution Date, registered holders of the Common Stock).

 Section 31. 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; provided, however, that notwithstanding anything in this Agreement to the contrary, if any such term, provision, covenant or restriction is held by such court or authority to be invalid, void or unenforceable and the Board
determines in its good faith judgment that severing the invalid language from this Agreement would adversely affect the purpose or effect of this Agreement, the right of redemption set forth in Section 23 hereof shall be reinstated and shall
not expire until the Close of Business on the tenth Business Day following the date of such determination by the Board. Without limiting the foregoing, if any provision requiring a specific group of directors of the Company to act is held to by any
court of competent jurisdiction or other authority to be invalid, void or unenforceable, such determination shall then be made by the Board of Directors of the Company in accordance with applicable law and the Company’s Amended and Restated
Certificate of Incorporation, as amended, and Amended and Restated Bylaws. 
 Section 32. Governing Law. This Agreement, each
Right and each Rights Certificate issued hereunder shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to
contracts made and to be performed entirely within such State. 
 Section 33. Counterparts. This Agreement may be executed in any
number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 
 Section 34. Descriptive Headings. Descriptive headings of the several sections of this Agreement are inserted for convenience only and shall
not control or affect the meaning or construction of any of the provisions hereof. 
 [Remainder of Page Intentionally Left Blank; Signature
Page Follows] 
  

 38 

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

			
	THE COMPANY:
	
	Collectors Universe, Inc.
		
	By:	 	 /s/ Michael R. Haynes

	Name:	 	Michael R. Haynes
	Title:	 	Chief Executive Officer
	
	RIGHTS AGENT:
	
	StockTrans, Inc.
		
	By:	 	 /s/ Robert J. Winterle

	Name:	 	 Robert J. Winterle

	Title:	 	 Vice President

 Signature Page to Rights Agreement 

 EXHIBIT A 
 FORM OF CERTIFICATE 
 OF DESIGNATION, PREFERENCES AND 
 RIGHTS OF SERIES A JUNIOR PARTICIPATING PREFERRED STOCK 
 OF 
 COLLECTORS UNIVERSE, INC. 
 Pursuant to Section 151 of the General Corporation Law of the State of Delaware 
 Michael R. Haynes, the Chief Executive Officer, and Joseph J. Wallace, the Chief Financial Officer, of Collectors Universe, Inc., a Delaware corporation (the “Corporation”), pursuant to the provisions of Sections 103 and
151 of the General Corporation Law of the State of Delaware, do hereby state and certify that pursuant to the authority vested in the Board of Directors of the Corporation by the Amended and Restated Certificate of Incorporation of the Corporation,
as heretofore amended (the “Certificate of Incorporation”), the Board of Directors on January 9, 2009, duly adopted the following resolution creating a series of 12,000 shares of Preferred Stock designated as “Series A Junior
Participating Preferred Stock”: 
 RESOLVED, that pursuant to the authority vested in the Board of Directors of this Corporation in
accordance with the provisions of its Certificate of Incorporation, a series of Preferred Stock of the Corporation be and it hereby is created, and that the designation and amount thereof and the voting powers, preferences and relative,
participating, optional and other special rights of the shares of such series, and the qualifications, limitations or restrictions thereof are as follows: 
 Section 1. Designation and Amount. The shares of such series shall be designated as “Series A Junior Participating Preferred Stock” and the number of shares constituting such series shall be
12,000. 
 Section 2. Dividends and Distributions. 
 (A) Subject to the prior and superior rights of the holders of any shares of any series of Preferred Stock ranking prior and superior to the shares of Series A Junior Participating Preferred Stock with respect to
dividends, the holders of shares of Series A Junior Participating 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 in cash on
the 15th day of March, June, September and December in each year (each such date being referred to herein as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share
or fraction of a share of Series A Junior Participating Preferred Stock, in an amount per share (rounded to the nearest cent) equal to the greater of (a) $0.10 or (b) subject to the provision for adjustment hereinafter set forth, 1,000
times the aggregate per share amount of all cash dividends, and 1,000 times the aggregate per share amount (payable in kind) of all non-cash dividends or other distributions, other than a dividend payable in shares of Common Stock or a subdivision
of the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common Stock, par value $0.001 per share, of the Corporation (the “Common Stock”), since the immediately preceding Quarterly Dividend Payment
Date, or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of Series A Junior Participating Preferred Stock. In the event the 

  

 A-1 

 
Corporation shall at any time after the Rights Dividend Declaration Date (i) declare any dividend on Common Stock payable in shares of Common Stock,
(ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock, through a reverse stock split or otherwise, into a smaller number of shares, then in each such case the amount to which holders of shares of Series
A Junior Participating Preferred Stock were entitled immediately prior to such event under clause (b) 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 A Junior Participating Preferred Stock as provided in Paragraph (A) above immediately after it declares a dividend or distribution on the
Common Stock (other than a dividend payable in shares of Common Stock); provided that, in the event no dividend or distribution shall have been declared on the Common Stock during the period between any Quarterly Dividend Payment Date and the next
subsequent Quarterly Dividend Payment Date, a dividend on each share on the Series A Junior Participating Preferred Stock shall nevertheless be payable, when, as and if declared, on such subsequent Quarterly Dividend Payment Date. 
 (C) Dividends shall begin to accrue and be cumulative on outstanding shares of Series A Junior Participating Preferred Stock from the Quarterly Dividend
Payment Date next preceding the date of issue of such shares of Series A Junior Participating Preferred Stock, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends
on such shares shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination of holders of shares of Series A Junior
Participating Preferred Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date.
Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares of Series A Junior Participating Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be
allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Series A Junior Participating Preferred Stock entitled to receive
payment of a dividend or distribution declared thereon, which record date shall be no more than thirty (30) days prior to the date fixed for the payment thereof. 
 Section 3. Voting Rights. The holders of shares of Series A Junior Participating Preferred Stock shall have the following voting rights: 
 (A) Subject to the provision for adjustment hereinafter set forth, each share of Series A Junior Participating Preferred Stock shall entitle the
holder thereof to one thousand (1,000) votes on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at any time after the Rights Dividend Declaration Date (i) declare any dividend on
Common Stock payable in shares of Common Stock, (ii) subdivide or split the outstanding Common Stock, or (iii) combine or consolidate the outstanding Common Stock into a smaller number of shares, through a reverse stock split or otherwise,
then in each such case the number of votes per share to which holders of shares of Series A Junior Participating Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such number by a fraction the
numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
  

 A-2 

 (B) Except as otherwise provided herein or by law, the holders of shares of Series A Junior Participating
Preferred Stock and the holders of shares of Common Stock shall vote together as one class on all matters submitted to a vote of stockholders of the Corporation. 
 (C) Except as may be required by law, holders of Series A Junior Participating Preferred Stock shall have no special voting rights and their consent shall not be required (except to the extent they are entitled
to vote with holders of Common Stock as set forth herein) for taking any corporate action. 
 Section 4. Certain Restrictions.

 (A) The Corporation shall not declare any dividend on, make any distribution on, or redeem or purchase or otherwise acquire for
consideration any shares of Common Stock after the first issuance of a share or fraction of a share of Series A Junior Participating Preferred Stock unless concurrently therewith it shall declare a dividend on the Series A Junior Participating
Preferred Stock as required by Section 2 hereof. 
 (B) Whenever quarterly dividends or other dividends or distributions payable on the
Series A Junior Participating 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 shares of Series A Junior Participating Preferred Stock
outstanding shall have been paid in full, the Corporation shall not 
 (i) declare or pay dividends on, make any other distributions on, or
redeem or purchase or otherwise acquire for consideration any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Junior Participating 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 A Junior Participating Preferred Stock, except dividends paid ratably on the Series A Junior Participating Preferred Stock and all such parity stock on which dividends are payable or in arrears in
proportion to the total amounts to which the holders of all such shares are then entitled; 
 (iii) redeem or purchase or otherwise acquire
for consideration shares of any stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Junior Participating Preferred Stock, provided that the Corporation may at any time redeem, purchase
or otherwise acquire shares of any such parity stock in exchange for shares of any stock of the Corporation ranking junior (either as to dividends or upon dissolution, liquidation or winding up) to the Series A Junior Participating Preferred Stock;
or 
 (iv) purchase or otherwise acquire for consideration any shares of Series A Junior Participating Preferred Stock, or any shares of
stock ranking on a parity with the Series A Junior Participating 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 such shares upon such terms as
the Board of Directors, after consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result in fair and equitable treatment among the
respective series or classes. 
  

 A-3 

 (C) The Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire
for consideration any shares of stock of the Corporation unless the Corporation could, under Paragraph (A) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner. 
 Section 5. Reacquired Shares. Any shares of Series A Junior Participating Preferred Stock purchased or otherwise acquired by the Corporation
in any manner whatsoever shall be retired and cancelled promptly after the acquisition thereof. All such shares shall upon their cancellation become authorized but unissued shares of Preferred Stock and may be reissued as part of a new series of
Preferred Stock to be created by resolution or resolutions of the Board of Directors, subject to the conditions and restrictions on issuance set forth herein. 
 Section 6. Liquidation, Dissolution or Winding Up. 
 (A) Upon any liquidation (voluntary or
otherwise), dissolution or winding up of the Corporation, no distribution shall be made to the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Junior Participating
Preferred Stock unless, prior thereto, the holders of shares of Series A Junior Participating Preferred Stock shall have received an amount equal to $1,000 per share of Series A Junior Participating Preferred Stock, plus an amount equal to accrued
and unpaid dividends and distributions thereon, whether or not declared, to the date of such payment (the “Series A Liquidation Preference”). Following the payment of the full amount of the Series A Liquidation Preference, no additional
distributions shall be made to the holders of shares of Series A Junior Participating Preferred Stock unless, prior thereto, the holders of shares of Common Stock shall have received an amount per share (the “Common Adjustment”) equal to
the quotient obtained by dividing (i) the Series A Liquidation Preference by (ii) 1,000 (as appropriately adjusted as set forth in subparagraph (C) below to reflect such events as stock splits, stock dividends and recapitalizations
with respect to the Common Stock) (such number in clause (ii), the “Adjustment Number”). Following the payment of the full amount of the Series A Liquidation Preference and the Common Adjustment in respect of all outstanding shares of
Series A Junior Participating Preferred Stock and Common Stock, respectively, holders of Series A Junior Participating Preferred Stock and holders of shares of Common Stock shall receive their ratable and proportionate share of the remaining assets
to be distributed in the ratio of the Adjustment Number to 1 with respect to such Preferred Stock and Common Stock, on a per share basis, respectively. 
 (B) In the event, however, that there are not sufficient assets available to permit payment in full of the Series A Liquidation Preference and the liquidation preferences of all other series of preferred stock, if
any, which rank on a parity with the Series A Junior Participating Preferred Stock, then such remaining assets shall be distributed ratably to the holders of such parity shares in proportion to their respective liquidation preferences. In the event,
however, that there are not sufficient assets available to permit payment in full of the Common Adjustment, then such remaining assets shall be distributed ratably to the holders of Common Stock. 
 (C) In the event the Corporation shall at any time after the Rights Dividend Declaration Date (i) declare any dividend on Common Stock payable in
shares of Common Stock, (ii) subdivide or split the outstanding Common Stock, or (iii) combine or consolidate the outstanding Common Stock into a smaller number of shares, through a reverse stock split or otherwise, then in each such case
the Adjustment Number in effect immediately prior to such event shall be adjusted by multiplying such 

  

 A-4 

 
Adjustment Number by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator
of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
 Section 7. Consolidation,
Merger, etc. In case the Corporation shall enter into any consolidation, merger, combination or other transaction in which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property,
then in any such case the shares of Series A Junior Participating Preferred Stock shall at the same time be similarly exchanged or changed in an amount per share (subject to the provision for adjustment hereinafter set forth) equal to 1,000 times
the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed or exchanged. In the event the Corporation shall at any time after the
Rights Dividend Declaration Date (i) declare any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide or split the outstanding Common Stock, or (iii) combine or consolidate the outstanding Common Stock into a
smaller number of shares, through a reverse stock split or otherwise, then in each such case the amount set forth in the preceding sentence with respect to the exchange or change of shares of Series A Junior Participating 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 shares of Series A Junior Participating Preferred Stock shall
not be redeemable. 
 Section 9. Ranking. The Series A Junior Participating Preferred Stock shall rank junior to all other series
of the Corporation’s Preferred Stock as to the payment of dividends and the distribution of assets, unless the terms of any such series shall provide otherwise. The Series A Junior Participating Preferred Stock shall rank senior to the
Corporation’s Common Stock. 
 Section 10. Amendment. At any time when any shares of Series A Junior Participating Preferred
Stock are outstanding, neither the Amended and Restated Certificate of Incorporation of the Corporation, as amended, nor this Certificate of Designation shall be amended in any manner which would materially alter or change the powers, preferences or
any special rights of the Series A Junior Participating Preferred Stock so as to affect them adversely without the affirmative vote of the holders of a majority or more of the outstanding shares of Series A Junior Participating Preferred Stock,
voting separately as a class. 
 Section 11. Fractional Shares. Series A Junior Participating 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 A
Junior Participating Preferred Stock. 
  

 A-5 

 IN WITNESS WHEREOF, we have executed and subscribed this Certificate and do affirm the foregoing as true
under the penalties of perjury this 14th day of January 2009. 
  

	
	  

	Michael R. Haynes
	Chief Executive Officer
	
	  

	Joseph J. Wallace
	Chief Financial Officer

  

 A-6 

 Exhibit B 
 [Form of Rights Certificate] 
  

			
	Certificate No. R-	 	             Rights

 NOT EXERCISABLE AFTER 5:00 P.M., NEW YORK
CITY TIME, ON (I) JANUARY 9, 2012, IF THE RIGHTS AGREEMENT IS APPROVED ON OR BEFORE JANUARY 9, 2010 BY THE AFFIRMATIVE VOTE OF THE HOLDERS OF A MAJORITY OF THE SHARES OF THE COMPANY’S COMMON STOCK, PRESENT OR REPRESENTED BY PROXY
AND ENTITLED TO VOTE ON THAT MATTER, AT A MEETING OF THE STOCKHOLDERS HELD IN ACCORDANCE WITH APPLICABLE LAW, OR (II) JANUARY 9, 2010, IF THE RIGHTS AGREEMENT IS NOT SO APPROVED BY THE STOCKHOLDERS ON OR BEFORE THAT DATE, IN EACH CASE, UNLESS
THE RIGHTS ARE PREVIOUSLY REDEEMED, EXCHANGED OR TERMINATED. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $0.001 PER RIGHT ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY
OWNED BY AN ACQUIRING PERSON (AS SUCH TERM IS DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID. [THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS
OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE
CIRCUMSTANCES SPECIFIED IN SECTION 7(E) OF SUCH AGREEMENT.] 1 
 Rights Certificate 
 Collectors Universe, Inc. 
 This certifies that                     , or
registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms, provisions and conditions of the Rights Agreement, dated as of January 14, 2009 (the
“Rights Agreement”), between Collectors Universe, Inc., a Delaware corporation (the “Company”), and StockTrans, Inc., a Delaware corporation (the “Rights Agent”), to purchase from the Company at any time prior to 5:00
P.M., New York City time, on (i) January 9, 2012, if the Rights Plan is approved on or before January 9, 2010 by the affirmative vote of the holders of a majority of the shares of the Company’s Common Stock, present or represented by
proxy and entitled to vote on that matter, at a meeting of the stockholders held in accordance with applicable law, or (ii) January 9, 2010, if the Rights Plan is not so approved by the stockholders on or before that date, in each case, unless
the Rights are previously redeemed, exchanged or terminated, at the office or offices of the Rights Agent designated for such purpose, or its successors as Rights Agent, one one-thousandth of a fully paid, nonassessable share of Series A Junior
Participating Preferred Stock (the “Preferred Stock”) of the Company, at a purchase price of $14.00 per one one-thousandth of a share (the “Purchase Price”), upon presentation and surrender of this Rights Certificate with the
Form of Election to Purchase and related Certificate duly executed. The number of Rights evidenced by this Rights Certificate (and the number of shares which may be purchased upon exercise thereof) set forth above, and the Purchase Price per share
set forth above, are the number and 
  

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

  

 B-1 

 
Purchase Price as of January 23, 2009, based on the Preferred Stock as constituted at such date. The Company reserves the right to require, prior to the
occurrence of a Triggering Event (as such term is defined in the Rights Agreement), that a number of Rights be exercised so that only whole shares of Preferred Stock will be issued. 
 Upon the occurrence (whether prior to, on or after the date of this Rights Certificate), of a Section 11(a)(ii) Event (as such term is defined
in the Rights Agreement), the Rights evidenced by this Rights Certificate are beneficially owned by (i) an Acquiring Person or an Affiliate or Associate of any such Acquiring Person (as such terms are defined in the Rights Agreement),
(ii) a transferee of any such Acquiring Person, Associate or Affiliate, or (iii) under certain circumstances specified in the Rights Agreement, a transferee of a person who, after such transfer, became an Acquiring Person, or an Affiliate
or Associate of an Acquiring Person, such Rights shall become null and void and no holder hereof shall have any right with respect to such Rights from and after the occurrence of such Section 11(a)(ii) Event. 
 As provided in the Rights Agreement, the Purchase Price and the number and kind of shares of Preferred Stock or other securities, which may be purchased
upon the exercise of the Rights evidenced by this Rights Certificate are subject to modification and adjustment upon the happening of certain events, including Triggering Events. 
 This Rights Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the
Company and the holders of the Rights Certificates, which limitations of rights include the temporary suspension of the exercisability of such Rights under the specific circumstances set forth in the Rights Agreement. Copies of the Rights Agreement
are on file at the above-mentioned office of the Rights Agent and are also available upon written request to the Rights Agent. 
 This Rights
Certificate, with or without other Rights Certificates, upon surrender at the principal office of the Rights Agent designated for such purpose, may be exchanged for another Rights Certificate or Rights Certificates of like tenor and date evidencing
Rights entitling the holder to purchase a like aggregate number of one one-thousandths of a share of Preferred Stock as the Rights evidenced by the Rights Certificate or Rights Certificates surrendered shall have entitled such holder to purchase. If
this Rights Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another Rights Certificate or Rights Certificates for the number of whole Rights not exercised. 
 Subject to the provisions of the Rights Agreement, the Rights evidenced by this Rights Certificate may be redeemed by the Company at a redemption price
of $0.001 per Right at any time prior to the earlier of 5:00 P.M., New York City time, on (A) the tenth Business Day (as such term is defined in the Rights Agreement) following the Stock Acquisition Date (as such term is defined in the Rights
Agreement) and (B) the Final Expiration Date (as such term is defined in the Rights Agreement). In addition, under certain circumstances following the Stock Acquisition Date, the Rights may be exchanged, in whole or in part, for shares of the
Common Stock of the Company or, at the Company’s option, for shares of Preferred Stock of the Company. Immediately upon the action of the Board of Directors of the Company authorizing any such exchange, and without any further action or any
notice, the Rights (other than Rights which are not subject to such exchange) will terminate and the Rights will only enable holders to receive the shares issuable upon such exchange. 
  

 B-2 

 No fractional shares of Preferred Stock will be issued upon the exercise of any Right or Rights evidenced
hereby (other than fractions which are integral multiples of one one-thousandth of a share of Preferred Stock), but in lieu thereof a cash payment will be made, as provided in the Rights Agreement. 
 No holder of this Rights Certificate shall be entitled to vote or receive dividends or be deemed for any purpose the holder of shares of Preferred Stock
or of any other securities of the Company which may at any time be issuable on the exercise hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a
stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give consent to or withhold consent from any corporate action, or, to receive notice of meetings
or other actions affecting stockholders (except as may otherwise be provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, unless and until the Right or Rights evidenced by this Rights Certificate shall have
been exercised as provided in the Rights Agreement. 
 This Rights Certificate shall not be valid or obligatory for any purpose until it
shall have been countersigned by the Rights Agent. 
 WITNESS the facsimile signature of the proper officers of the Company. 
 Dated as of:                     , 2009 
  

			
	COLLECTORS UNIVERSE, INC.
		
	By:	 	  

	Title:	 	  

	
	Countersigned:
	STOCKTRANS, INC.
		
	By:	 	  

		 	Authorized Signature

  

 B-3 

 [Form of Reverse Side of Rights Certificate] 
 FORM OF ASSIGNMENT 
 (To be executed by the registered holder if such holder
desires to transfer the Rights Certificate.) 
 FOR VALUE RECEIVED
                                         
                    hereby sells, assigns and transfers unto
                                         
                                        

(Please print name and address of transferee) 
  
  
 this Rights Certificate, together with all right, title and
interest therein, and does hereby irrevocably constitute and appoint                      Attorney, to transfer the within Rights Certificate
on the books of the within named Company, with full power of substitution. 
  

					
	Dated as of:                     , 20    	 		 	  

		 		 	Signature
		 		 	Signature Guaranteed:

 Certificate 
 The undersigned hereby certifies by checking the appropriate boxes that: 
 (1) this Rights Certificate
[    ] is [    ] is not being sold, assigned and transferred by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such Acquiring Person (as such terms are defined
in the Rights Agreement); 
 (2) after due inquiry and to the best knowledge of the undersigned, it [    ] did
[    ] did not acquire the Rights evidenced by this Rights Certificate from any Person who is, was or subsequently became an Acquiring Person or an Affiliate or Associate of an Acquiring Person. 
  

					
	Dated as of:                     , 20    	 		 	  

		 		 	Signature
		 		 	Signature Guaranteed:

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

 B-4 

 FORM OF ELECTION TO PURCHASE 
 (To be executed if holder desires to exercise Rights represented by the Rights Certificate.) 
  

	To:	COLLECTORS UNIVERSE, INC. 

 The undersigned hereby
irrevocably elects to exercise                      Rights represented by this Rights Certificate to purchase the 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 shares be issued in the name of and delivered to:

 Please insert social security 
 or other identifying number:
                                         
                    
  
  
 (Please print name and address) 
 If such number of Rights shall not be all the Rights evidenced by this Rights Certificate, a new Rights Certificate for the balance of such Rights shall
be registered in the name of and delivered to: 
 Please insert social security 
 or other identifying number
                                         
                    
  
  
 (Please print name and address) 
  

					
	Dated:                             	 		 	  

		 		 	Signature
		 		 	Signature Guaranteed:

 Certificate 
 The undersigned hereby certifies by checking the appropriate boxes that: 
 (1) the Rights evidenced by this
Rights 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
pursuant to the Rights Agreement); 
 (2) after due inquiry and to the best knowledge of the undersigned, it [    ] did
[    ] did not acquire the Rights evidenced by this Rights Certificate from any Person who is, was or became an Acquiring Person or an Affiliate or Associate of an Acquiring Person. 
  

					
	Dated:                             	 		 	  

		 		 	Signature
		 		 	Signature Guaranteed:

  

 B-5 

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

 B-6 

 Exhibit C 
 SUMMARY OF RIGHTS 
 On January 9, 2009, the Board of Directors (the
“Board”) of Collectors Universe, Inc., a Delaware corporation (the “Company”), authorized and declared a dividend distribution of one right (a “Right”) for each outstanding
share of common stock, par value $0.001 per share, of the Company (the “Common Stock”) to stockholders of record at the close of business on January 23, 2009 (the “Record Date”). Each Right
entitles the registered holder to purchase from the Company a unit consisting of one one-thousandth of a share (a “Unit”) of Series A Junior Participating Preferred Stock, par value $0.001 per share (the “Preferred
Stock”), at a purchase price of $14.00 per Unit, subject to adjustment (the “Purchase Price”). The description and terms of the Rights are set forth in a Rights Agreement (the “Rights
Agreement”), dated as of January 14, 2009, between the Company and StockTrans, Inc., a Delaware corporation (the “Rights Agent”). Capitalized terms used but not defined herein shall have the meanings
ascribed to them in the Rights Agreement. 
 Certificates. Initially, the Rights will be attached to the shares of Common Stock
underlying the balances indicated in the book-entry account system of the transfer agent for the Common Stock or, in the case of certificated shares, all Common Stock certificates representing shares then outstanding, and no separate rights
certificates (“Rights Certificates”) will be distributed. Subject to certain exceptions specified in the Rights Agreement, the Rights will separate from the Common Stock and a distribution date (a “Distribution
Date”) will occur upon the earlier of (i) ten (10) calendar days following a public announcement that a Person (an “Acquiring Person”) has acquired beneficial ownership of twenty percent (20%) or
more of the outstanding shares of the Company’s Common Stock (the “Stock Acquisition Date”), other than as a result of repurchases of stock by the Company or certain inadvertent actions by institutional or certain other
stockholders, or (ii) ten (10) Business Days (or such later date as the Board shall determine) following the commencement of a tender offer or exchange offer that would, if consummated, result in a person or group becoming an Acquiring
Person. Until the Distribution Date (or earlier redemption, exchange or expiration of the Rights), (i) the Rights will be evidenced by the balances indicated in the book-entry account system of the transfer agent for the Common Stock registered
in the names of the holders of the Common Stock or, in the case of certificated shares, the Common Stock certificates, and will be transferred with and only with such shares or, in the case of certificated shares, Common Stock certificates,
(ii) confirmation and account statements sent to holders of shares of Common Stock in book-entry form or, in the case of certificated shares, new Common Stock certificates issued after the Record Date, will contain a notation incorporating the
Rights Agreement by reference and (iii) the transfer of any shares of Common Stock or, in the case of certificated shares, certificates for Common Stock, outstanding will also constitute the transfer of the Rights associated with such shares of
Common Stock or, in the case of certificated shares, the Common Stock represented by such certificates. Pursuant to the Rights Agreement, the Company reserves the right to require prior to the occurrence of a Triggering Event (as defined below)
that, upon any exercise of Rights, a number of Rights be exercised so that only whole shares of Preferred Stock will be issued. 
 Expiration and Exercise. The Rights are not exercisable until the occurrence of a Distribution Date and, if no Distribution Date occurs, will expire on the Close of Business on (i) January 9, 2012, if the Rights Agreement is
approved on or before January 9, 2010 by the affirmative vote of the holders of a majority of the shares of the Company’s Common Stock, present or represented by proxy and entitled to vote on that matter, at a meeting of the stockholders
held in accordance with applicable law, or (ii) January 9, 2010, if the Rights Agreement is not so approved by the stockholders on or before that date, in each case, unless the Rights are previously redeemed, exchanged or terminated.

  

 C-1 

 As soon as practicable after the occurrence of a Distribution Date, Rights Certificates will be mailed to
holders of record of the Common Stock as of the Close of Business on the Distribution Date and, thereafter, the separate Rights Certificates alone will represent the Rights. 
 “Flip-In.” In the event that a Person becomes an Acquiring Person, each Right will thereafter be exercisable, at the Purchase Price,
into shares of the Common Stock (or, in certain circumstances, cash, property or other securities of the Company) having a value (based on a formula set forth in the Rights Agreement) equal to two (2) times the Purchase Price of the Right.
Notwithstanding any of the foregoing, following the occurrence of the event set forth in this paragraph, all Rights that are, or (under certain circumstances specified in the Rights Agreement) were, beneficially owned by any Acquiring Person (or by
certain related parties) will be null and void. However, Rights are not exercisable following the occurrence of the event set forth above until such time as the Rights are no longer redeemable as set forth below. 
 For example, at an exercise price of $14.00 per Right, each Right not owned by an Acquiring Person (or by certain related parties) following the event
set forth in the preceding paragraph would entitle its holder to purchase $28.00 worth of Common Stock (or other consideration, as noted above) for $14.00. Assuming that the Common Stock had a per share value of $4.00 at such time, the holder of
each valid Right would be entitled to purchase seven (7) shares of Common Stock for $14.00. 
 “Flip-Over.” In the
event that, at any time following the Stock Acquisition Date, (i) the Company engages in a merger or other business combination transaction with the Acquiring Person in which the Company is not the surviving corporation, (ii) the Company
engages in a merger or other business combination transaction with the Acquiring Person in which the Company is the surviving corporation and the Common Stock of the Company is changed or exchanged, or (iii) other than pursuant to a pro rata
dividend and/or distribution to all of the then current holders of Common Stock, fifty percent (50%) or more of the Company’s assets, cash flow or earning power is sold or transferred to the Acquiring Person, each Right (except Rights
which have previously been voided as set forth above) shall thereafter be exercisable, at the Purchase Price, into common stock of the Acquiring Person having a value equal to two (2) times the Purchase Price of the Right. 
 Exchange Feature. At any time after a Person becomes an Acquiring Person and prior to the acquisition by the Acquiring Person of fifty percent
(50%) or more of the outstanding Common Stock, the Board may exchange the Rights (other than Rights owned by such Person or its related parties which have become void), in whole or in part, for Common Stock or Preferred Stock at an exchange
ratio of one share of Common Stock, or one one-thousandth of a share of Preferred Stock (or of a share of a class or series of the Company’s preferred stock having equivalent rights, preferences and privileges), per Right (subject to
adjustment). 
 Adjustment for Dilution. The Purchase Price payable, and the number of Units of Preferred Stock or other securities or
property issuable, upon exercise of the Rights are subject to adjustment from time to time to prevent dilution (i) in the event of a stock dividend on, or a subdivision, split, combination, consolidation or reclassification of, the Preferred
Stock, (ii) if holders of the Preferred Stock are granted certain rights or warrants to subscribe for Preferred Stock or convertible securities at less than the current market price of the Preferred Stock, or (iii) upon the distribution to
holders of the Preferred Stock of evidences of indebtedness or assets (excluding regular quarterly cash dividends) or of subscription rights or warrants (other than those referred to above). 
  

 C-2 

 With certain exceptions, no adjustment in the Purchase Price will be required until cumulative
adjustments amount to at least 1% of the Purchase Price. No fractional Units will be issued and, in lieu thereof, an adjustment in cash will be made based on the market price of the Preferred Stock on the last trading date prior to the date of
exercise. 
 Redemption. At any time prior to the earlier of (i) the Close of Business on the tenth (10th) Business Day
following the Stock Acquisition Date (or, if the Stock Acquisition Date shall have occurred prior to the Record Date, the Close of Business on the tenth (10th) Business Day following the Record Date) or (ii) the Final Expiration Date, the
Company may redeem the Rights in whole, but not in part, at a price of $0.001 per Right (payable in cash, Common Stock or other consideration deemed appropriate by the Board). Immediately upon the action of the Board ordering redemption of the
Rights, the Rights will terminate and the only right that holders of Rights will have thereafter will be to receive the $0.001 redemption price per Right. 
 However, in the event that the Company receives a Qualified Offer (as described below), the Rights may be redeemed by way of a stockholder action taken at a special meeting of stockholders called for the purpose of
voting on a resolution to accept the Qualified Offer and to authorize the redemption of the Rights pursuant to the provisions of the Rights Agreement. Such an action by stockholders requires the affirmative vote of the holders of at least a majority
of all outstanding shares of Common Stock entitled to vote on such matter as of the record date of the special meeting, other than the person making the Qualified Offer and its related persons (the “Offeror”). A
“Qualified Offer” is an offer determined by a majority of the independent members of the Board to have, among other characteristics, each of the following: 
  

	 	•	 	 the offer must be fully financed and take the form of an all-cash tender offer, or an exchange offer offering shares of common stock of the offeror, or a
combination thereof, for all of the outstanding shares of the Company’s Common Stock at the same per share consideration; 

  

	 	•	 	 the offer price per share must be greater than the highest reported market price for the Company’s Common Stock in the immediately preceding eighteen
(18) months; 

  

	 	•	 	 a nationally recognized investment banking firm retained by the Board must have rendered an opinion to the Board that the consideration being offered to the
stockholders of the Company in the offer is fair, from a financial standpoint, to the Company’s stockholders (other than the Offeror); 

  

	 	•	 	 the Company shall have received an irrevocable written commitment of the Offeror that the offer will remain open for at least one hundred twenty (120) business
days and, if a special meeting of stockholders is requested, for at least ten (10) business days after the date of the special meeting or, if no special meeting is held within ninety (90) business days following receipt of the request for
the special meeting, for at least ten (10) business days following such ninety (90) business day period; 

  

	 	•	 	 the offer must be conditioned on a minimum of at least two-thirds (2/3rds) of the outstanding shares of the Company’s Common Stock not held by the Offeror
being tendered and not withdrawn as of the offer’s expiration date; and 

  

 C-3 

	 	•	 	 the Company must have received an irrevocable written commitment of the Offeror to consummate, as promptly as practicable upon successful completion of the offer, a
second step transaction whereby all shares of the Common Stock not tendered into the offer will be acquired at the same consideration per share actually paid pursuant to the offer. 

 Stockholder Rights. Until a Right is exercised, the holder thereof, as such, will have no separate rights as a stockholder of the Company,
including, without limitation, the right to vote or to receive dividends in respect of Rights. While the distribution of the Rights will not be taxable to stockholders or to the Company, stockholders may, depending upon the circumstances, recognize
taxable income in the event that the Rights become exercisable for Common Stock (or other consideration) of the Company or for common stock of the Acquiring Person or in the event of the redemption of the Rights as set forth above. 
 Amendments. The Company (by action of the Board) may supplement or amend any provision of the Rights Agreement from time to time, including,
without limitation, in order to cure any ambiguity, to correct or supplement any provision contained in the Rights Agreement which may be defective or inconsistent with any other provisions, to shorten or lengthen any time period under the Rights
Agreement, or to change, amend, or supplement the provisions of the Rights Agreement in any manner which the Company may deem necessary or desirable. Notwithstanding the foregoing, from and after such time as any Person becomes an Acquiring Person,
the Rights Agreement may not be supplemented or amended in any manner that would adversely affect the interests of the holders of Rights (other than Rights that have become null and void). 
 Availability of Rights Agreement. A copy of the Rights Agreement has been or will be filed with the Securities and Exchange Commission as an
Exhibit to a Registration Statement on Form 8-A of the Company and as an Exhibit to a Current Report on Form 8-K. A copy of the Rights Agreement is available free of charge from the Rights Agent. This summary description of the Rights does not
purport to be complete and is qualified in its entirety by reference to the Rights Agreement, which is incorporated herein by reference. 
  

 C-4Unassociated Document

     

    Exhibit
10.1

     

    
      

      LICENSE
AGREEMENT

BETWEEN

       

      NEUROLOGIX,
INC.

      

      AND

       

      CORNELL
UNIVERSITY

       

      FOR

      

      DOCKET
NO. D-4374

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          TABLE OF
CONTENTS

           

          Page

        
          
            
              	
                      Recitals

                    	
                      1

                    
	
                      Article
      1. Definitions

                    	
                      2

                    
	
                      Article
      2. Grants

                    	
                      3

                    
	
                      Article
      3. Consideration

                    	
                      5

                    
	
                      Article
      4. Reports, Records And Payments

                    	
                      7

                    
	
                      Article
      5. Patent Matters

                    	
                      10

                    
	
                      Article
      6. Governmental Matters

                    	
                      12

                    
	
                      Article
      7. Termination Of The Agreement

                    	
                      12

                    
	
                      Article
      8. Limited Warranty, Representations And Indemnification

                    	
                      13

                    
	
                      Article
      9. Use Of Names And Trademarks

                    	
                      16

                    
	
                      Article
      10. Miscellaneous Provisions

                    	
                      17

                    
	Appendix
      A  D-4374 Pending Patent Applications Filed as of Effective
      Date 	
                       22

                    

            

          

        

        
           

           

           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      LICENSE
AGREEMENT

       

      This
agreement ("Agreement") is made by and between Neurologix, Inc., a Delaware
corporation having an address at One Bridge Plaza, Fort Lee, NJ 07024
("LICENSEE"),  and Cornell University (“Cornell”) as represented by
its Cornell Center for Technology Enterprise and Commercialization having an
address at 395 Pine Tree Road, Suite 310, Ithaca, NY 14850
("CCTEC").

       

      This
Agreement is effective on the date of the last signature (“Effective
Date”).

       

      RECITALS

       

      WHEREAS, the inventions
disclosed in Disclosure Docket No. D-4374 and titled “Gene Therapy for Major
Depression” (“Invention”) were made in the course of research at Cornell by Dr.
Michael Kaplitt and his associates (hereinafter and collectively, the
“Inventors”) and are covered by Patent Rights as defined below;

       

      WHEREAS, the development of
the Invention was sponsored in part by LICENSEE pursuant to the Clinical Study
Agreement, dated as of July 2, 2003, as amended (the “Clinical Study
Agreement”), between Cornell and LICENSEE;

       

      WHEREAS, the Inventors are
employees of Cornell, and they are obligated to assign all of their rights,
title and interest in the Invention to the Cornell Research Foundation (“CRF”)
or to Cornell and have done so;

       

      WHEREAS, CRF has engaged
CCTEC to manage the Invention, in whole or in part, assigned to CRF or to
Cornell and has fully authorized CCTEC to manage all rights subsisting therein
and to enter into any agreement granting such rights to advance the missions of
Cornell;

       

      WHEREAS, CCTEC is the
officially authorized unit at Cornell to manage the Invention and to grant
rights subsisting therein for Cornell and CRF;

       

      WHEREAS, Cornell desires that
the Invention be developed and utilized to the fullest possible extent so that
its benefits can be enjoyed by the general public;

       

      WHEREAS, LICENSEE desires to
obtain certain rights from Cornell for commercial development, use, and sale of
the Invention, and Cornell is willing to grant such rights; and

       

      WHEREAS, LICENSEE understands
that Cornell may publish or otherwise disseminate information concerning the
Invention at any time and that LICENSEE is paying consideration hereunder for
its early access to the Invention, the associated intellectual property rights,
not continued secrecy therein.

       

      NOW, THEREFORE, the parties
agree:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ARTICLE
1.

       

      DEFINITIONS

       

       

      The
terms, as defined herein, shall have the same meanings in both their singular
and plural forms.

       

      1.1           “Affiliate”
means any corporation or other business entity in which LICENSEE owns or
controls, directly or indirectly, at least twenty percent (20%) of the
outstanding stock or other voting rights entitled to elect directors or in which
LICENSEE is owned or controlled, directly or indirectly, by at least twenty
percent (20%) of the outstanding stock or other voting rights entitled to elect
directors; but in any country where the local law does not permit foreign equity
participation of at least twenty percent (20%), then an “Affiliate” includes any
company in which LICENSEE owns or controls, or is owned or controlled by,
directly or indirectly, the maximum percentage of outstanding stock or voting
rights permitted by local law.

       

      1.2           “Sublicense”
means an agreement into which LICENSEE enters with a third party that is not an
Affiliate for the purpose of (i) granting certain rights; (ii) granting an
option to certain rights; or (iii) forbearing the exercise of any rights,
granted to LICENSEE under this Agreement after Effective Date. “Sublicensee”
means a third party with whom LICENSEE enters into a Sublicense.

       

      1.3           “Field”
means the treatment of psychiatric conditions.

       

      1.4           “Territory”
means world-wide.

       

      1.5           “Term”
means the period of time beginning on Effective Date and ending on the
expiration date of the longest-lived patent in Patent Rights.

       

      1.6           “Patent
Rights” mean CRF’s or Cornell’s rights in any of the
following:  ########*.

       

      1.7           “IND”
means an investigational new drug application filed or to be filed with the
United States Food and Drug Administration (“FDA”) or any equivalent foreign
agency in respect of a Licensed Product.

       

      1.8           “Sponsor
Rights” mean all the applicable provisions of any license to the United States
Government executed by CRF or Cornell and the overriding obligations to the US
Government under 35 U.S.C. §§ 200-212 and the overriding obligations to
LICENSEE under the Clinical Study Agreement.

       

      1.9           “Licensed
Method” means any method that is claimed in Patent Rights where the use of which
would constitute, but for the license granted to LICENSEE under this Agreement,
an infringement, an inducement to infringe or contributory infringement, of any
pending or issued claim within Patent Rights.

       

      _____________________________

      
        * ######## = Material omitted pursuant
to a request for Confidential Treatment and filed separately with the Commission
on the date of filing of this Form 8-K.

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      1.10           “Licensed
Product” means any service, composition or product that is claimed in Patent
Rights, or that is produced or enabled by a Licensed Method, or the manufacture,
use, sale, offer for sale, or importation of which would constitute, but for the
license granted to LICENSEE under this Agreement, an infringement, an inducement
to infringe or contributory infringement, of any pending or issued claim within
the Patent Rights.

       

      1.11           “Net
Sales” mean the total of the gross invoice prices of Licensed Products sold or
leased by LICENSEE, any Sublicensee, any Affiliate, or any combination thereof,
less the sum of the following actual and customary deductions where applicable
and separately listed:  cash, trade, or quantity discounts; sales,
use, tariff, import/export duties or other excise taxes imposed on sales (except
for value-added and income taxes imposed on the sales of Licensed Products in
foreign countries); transportation charges; or allowances or credits to
customers because of rejections or returns. For purposes of calculating Net
Sales, sales or transfers to a Sublicensee or an Affiliate of Licensed Products
for (i) end use (but not resale) by the Sublicensee or the Affiliate shall be
treated as sales by LICENSEE at the list price of LICENSEE in an arms-length
transaction, or (ii) resale for end use by a Sublicensee or an Affiliate shall
be treated as sales at the list price of the Sublicensee or
Affiliate.

       

      1.12           “Patent
Costs” mean all out-of-pocket expenses for the preparation, filing, prosecution,
and maintenance of all United States and foreign patent applications and patents
included in Patent Rights. Patent Costs shall also include reasonable
out-of-pocket expenses for patentability opinions, inventorship review and
determination, preparation and prosecution of patent applications,
re-examination, re-issue, interference, opposition activities related to patents
or applications in Patent Rights plus a patent service fee equal to fifteen
percent (15%) of the legal fees paid by Cornell or CRF for patent
prosecution.

       

      ARTICLE
2.

       

      GRANTS

       

      2.1           License.

       

      (a)           Subject
to LICENSEE’s compliance with Paragraph 3.2 and the Sponsor's Rights, Cornell
hereby grants to LICENSEE, and LICENSEE hereby accepts, a license under Patent
Rights to make and have made, to use and have used, to sell and have sold, to
offer for sale, and to import and have imported Licensed Products and to
practice Licensed Methods in the Field within the Territory during the
Term.

       

      (b)           The
license granted herein is exclusive for Patent Rights.

       

      (c)           
LICENSEE may extend the rights granted above to its Affiliates, provided that
LICENSEE shall first provide to Cornell a written assurance from each of its
Affiliates to the effect that they will comply with all applicable terms and
conditions of this Agreement and all obligations of LICENSEE
hereunder.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      2.2           Sublicense.

       

      (a)           The
license granted in Paragraph 2.1 includes the right of LICENSEE to grant
Sublicenses to third parties during the Term, except with respect to specific
uses of the Patent Rights in the Field which are excluded pursuant to Paragraph
3.3(c).

       

      (b)           With
respect to any Sublicense granted pursuant to Paragraph 2.2(a), LICENSEE
shall:

       

      (i)           not
receive, or agree to receive, anything of value in lieu of cash as consideration
from a third party under such Sublicense without the express written consent
of  Cornell;

       

      (ii)           to
the extent applicable, include all of the rights of and obligations due to
Cornell contained in this Agreement;

       

      (iii)           promptly
provide Cornell with a copy of each Sublicense issued and of each amendment made
to any Sublicense; and

       

      (iv)           collect
and guarantee payment of all payments due, directly or indirectly, to Cornell
from Sublicensees and summarize and deliver all reports due, directly or
indirectly, to Cornell from Sublicensees.

       

      (c)           Unless
a Sublicensee receives written consent from Cornell prior to its issuance by
LICENSEE to a Sublicensee, Cornell, at its sole discretion, shall determine
whether LICENSEE shall cancel or assign to Cornell said Sublicense upon
termination of this Agreement for any reason.

       

      (d)           This
paragraph is intentionally left blank.

       

      2.3           Reservation of
Rights.  Cornell reserves the right to:

       

      (a)           use
the Invention and Patent Rights for educational and non-commercial research
purposes;

       

      (b)           publish
or otherwise disseminate any information about the Invention at any time;
and

       

      (c)           allow
other nonprofit institutions to use the Invention and Patent Rights, other than
Enabled Patent Rights as hereinafter defined, for educational and research
purposes.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      ARTICLE
3.

       

      CONSIDERATION

       

      3.1           Fees and
Royalties.                                                      

       

      (a)           LICENSEE
shall pay Cornell:

       

      (i)           a
license issue fee of
########* on the Effective Date;

       

      (ii)           license maintenance fees,
payable to Cornell on each anniversary of the Effective Date according to the
following schedule;  provided, however, that LICENSEE's obligation to
pay this fee shall end on the date when LICENSEE  is commercially
selling a Licensed Product:  ########*;

       

      (iii)           milestone payments in the
following amounts payable per Licensed Product according to the following
events:  ########*

       

       

      All such
milestone payments shall be made within sixty (60) days after the occurrence of
an above-mentioned event;

       

      (iv)           an
earned royalty of
########*;

       

      (v)           a
percentage of all Sublicense
fees received by LICENSEE from its Sublicenses that are not earned
royalties according to the following schedule:  ########*

       

      To the
extent that any Licensed Product is comprised of technology reflecting the
Patent Rights and patent or proprietary rights of others (the “Other Patent
Holders”) for which LICENSEE pays royalties, then any Sublicense fees payable by
LICENSEE hereunder shall be allocated by LICENSEE among Cornell and the Other
Patent Holders in a manner that consistently and equitably reflects the
contribution that the technology covered by the Sublicense makes to the Licensed
Product.  Cornell will have the opportunity to review and comment on
any such allocation made by LICENSEE.  If Cornell disagrees on the
allocation then, Cornell and LICENSEE would agree to undertake good faith
efforts to resolve the disagreement among themselves, failing which, the
disagreement will be resolved by arbitration.  All payments of such
non-royalty Sublicense fees shall be made within sixty (60) days of receipt of
the Sublicense fees by LICENSEE; and

       

      (vi)           beginning
the calendar year of commercial sales of the first Licensed Product by LICENSEE,
its Sublicensee, or an Affiliate and if the total earned royalties paid by
LICENSEE under Paragraph 3.1(a) (iv) to Cornell in any such year cumulatively
amounts to less than ########* (“minimum annual royalty”),
LICENSEE shall pay to Cornell a minimum annual royalty on or before February 28
following the last quarter of such year ########*.

       

      (b)           Notwithstanding
the foregoing, any royalties that have accrued for Licensed Products that have
been sold and delivered to, but not paid for by, the recipient, shall be
deducted from, or offset against, future royalty payments to be made by LICENSEE
to Cornell.

       

      _____________________________

      
        * ######## = Material omitted pursuant
to a request for Confidential Treatment and filed separately with the Commission
on the date of filing of this Form 8-K.

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      (c)           Except
as otherwise specified in Paragraph 3.1(a), all other fees and royalty payments
specified in Paragraph 3.1(a) shall be paid by LICENSEE pursuant to Paragraph
4.3 and shall be delivered by LICENSEE to Cornell as noted in Paragraph
10.1.

       

      3.2           Patent Costs.

       

      (a)           LICENSEE
shall reimburse Cornell for all past (prior to the Effective Date) and future
(on or after the Effective Date) Patent Costs within thirty (30) days following
the date that an itemized invoice is sent from Cornell to LICENSEE.

       

      (b)           Past
Patent Costs are approximately ########* as of June 11, 2008.

       

      3.3           Due Diligence.

       

      (a)           LICENSEE
shall, either directly or through its Affiliate(s) or Sublicensee(s), diligently
proceed with the development, manufacture and sale of one or more Licensed
Products and make  reasonable efforts to comply with the
following:

       

      (i)           initiate
and complete the testing of a Licensed Product in rodents within two (2) years
of the Effective Date;

       

      (ii)           submit
an IND covering a Licensed Product to the FDA within four (4) years of the
Effective Date;

       

      (iii)           initiate
a Phase I clinical trial of a Licensed Product within five (5) years of the
Effective Date;

       

      (iv)           initiate
a Phase II clinical trial of a Licensed Product within seven (7) years of the
Effective Date;

       

      (v)           initiate
a Phase III clinical trial of a Licensed Product within ten (10) years of the
Effective Date; and

       

      (vi)           obtain
all necessary governmental approvals for the manufacture, use and sale of
Licensed Products.

       

      (b)           So
long as LICENSEE is and has been diligently proceeding with the development,
manufacture and sale of one or more Licensed Products, the failure by LICENSEE
to complete, when due, any of the milestones specified in Paragraphs
3.3(a)(i)-(vi) shall not constitute a breach of, or failure to perform under,
this Agreement, and Cornell shall not have a right to terminate this Agreement
or the license granted to LICENSEE hereunder pursuant to Paragraph 7.1(a) or
otherwise.  However, if LICENSEE is not diligently proceeding with the
development, manufacture and sale of one or more Licensed Products, then Cornell
reserves the right and option to either terminate this Agreement or change
LICENSEE’s exclusive license to a nonexclusive license.

       

      _____________________________

      
        * ######## = Material omitted pursuant
to a request for Confidential Treatment and filed separately with the Commission
on the date of filing of this Form 8-K.

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

         

      

      (c)           If
at any time during the Term, Cornell receives one or more earnest offers to
license Patent Rights from one or more third parties for a specific use not then
being provided by LICENSEE, Cornell shall refer such offers to
LICENSEE.  If LICENSEE fails to (i) promptly begin a genuine product
or business development program for a Licensed Product for such specific use or
(ii) promptly grant Sublicenses to satisfy the market demand for said specific
use, Cornell may then exclude said specific use from the license and license
such rights to such third parties.

       

      3.4           Research
Support.  During the Term, LICENSEE agrees to continue to
provide research support in annual amounts of no less than ########* under the Clinical Study Agreement, on the
terms set forth therein.

       

      ARTICLE
4.

       

      REPORTS,
RECORDS AND PAYMENTS

       

      4.1           Reports.

       

      (a)           Progress Reports.

       

      (i)           Beginning
six months after the Effective Date and ending on the date of first commercial
sale of a Licensed Product in the United States, LICENSEE shall report to
Cornell its progress covering LICENSEE's (and each Affiliate's and
Sublicensee's) activities for the preceding six (6) months to develop and test
Licensed Products and obtain governmental approvals necessary for marketing the
same.  Such semi-annual reports shall be due within sixty (60) days of
the reporting period and include a summary of work completed, a summary of work
in progress, a current schedule of anticipated events or milestones, market
plans for introduction of the Licensed Products, and a summary of resources
(dollar value) spent in the reporting period.

       

      (ii)           LICENSEE
shall also report to Cornell, in its immediately subsequent progress report, the
date of the first commercial sale of a Licensed Product in each
country.

       

      (b)           Royalty
Reports.  After the first commercial sale of a Licensed Product
anywhere in the world, LICENSEE shall submit to Cornell quarterly royalty
reports on or before each February 28, May 31, August 31 and November 30 of each
year. Each royalty report shall cover LICENSEE's (and each Affiliate's and
Sublicensee's) most recently completed calendar quarter and shall
show:

       

      _____________________________

      
        * ######## = Material omitted pursuant
to a request for Confidential Treatment and filed separately with the Commission
on the date of filing of this Form 8-K.

      

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (i)           the
gross sales, deductions as provided in Paragraph 1.11, and Net Sales during the
most recently completed calendar quarter and the royalties, in US dollars,
payable with respect thereto;

       

      (ii)           the
number of each type of Licensed Product sold;

       

      (iii)           Sublicense
fees and royalties received during the most recently completed calendar quarter
in US dollars, payable with respect thereto;

       

      (iv)           the
method used to calculate the royalties; and

       

      (v)           the
exchange rates used.

       

      If no
sales of Licensed Products have been made and no Sublicense revenue has been
received by LICENSEE during any reporting period, LICENSEE shall so
report.

       

      4.2           Records &
Audits.

       

      (a)           LICENSEE
shall keep, and shall require its Affiliates and Sublicensees to keep, accurate
and correct records of all Licensed Products manufactured, used, and sold, and
Sublicense fees received under this Agreement.  Such records shall be
retained by LICENSEE for at least five (5) years following a given reporting
period.

       

      (b)           All
records shall be available during normal business hours for inspection at the
expense of Cornell by Cornell’s Internal Audit Department or by a Certified
Public Accountant selected by Cornell and in compliance with the other terms of
this Agreement for the sole purpose of verifying reports and payments or other
compliance issues. Such inspector shall not disclose to Cornell any information
other than information relating to the accuracy of reports and payments made
under this Agreement or other compliance issues. In the event that any such
inspection shows an under reporting and underpayment in excess of five percent
(5%) for any twelve-month (12-month) period, then LICENSEE shall pay the cost of
the audit as well as any additional sum that would have been payable to Cornell
had the LICENSEE reported correctly, plus an interest charge at a rate of
########*.  Such interest shall be calculated
from the date the correct payment was due to Cornell up to the date when such
payment is actually made by LICENSEE.  For underpayment not in excess
of five percent (5%) for any twelve-month (12-month) period, LICENSEE shall pay
the difference within thirty (30) days without inspection
cost.  Cornell shall be permitted to exercise its right to review
LICENSEE’s records one (1) time in each calendar year, and Cornell shall provide
reasonable advance notice to LICENSEE of its intent to exercise such
right.

      
_____________________________

      
        * ######## = Material omitted pursuant
to a request for Confidential Treatment and filed separately with the Commission
on the date of filing of this Form 8-K.

      

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      4.3           Payments.

       

      (a)           All
fees, reimbursements and royalties due Cornell shall be paid in United States
dollars and all checks shall be made payable to “Cornell University”,
referencing Cornell's taxpayer identification number, ########*, and sent to Cornell according to Paragraph
10.1 (Correspondence). When Licensed Products are sold in currencies other than
United States dollars, LICENSEE shall first determine the earned royalty in the
currency of the country in which Licensed Products were sold and then convert
the amount into equivalent United States funds, using the exchange rate quoted
in the Wall Street Journal on the last business day of the applicable reporting
period.

       

      (b)           Royalty
payments under Paragraph 3(a)(iv) shall be made as follows:

       

      (i)           royalties
shall accrue when Licensed Products are invoiced, or if not invoiced, when
delivered to a third party or an Affiliate;

       

      (ii)           LICENSEE
shall pay earned royalties quarterly on or before February 28, May 31, August 31
and November 30 of each calendar year. Each such payment shall be for Net Sales
occurring within LICENSEE's most recently completed calendar
quarter;

       

      (iii)           royalties
earned on Net Sales in any country outside the United States shall not be
reduced by LICENSEE for any taxes, fees, or other charges imposed by the
government of such country on the payment of royalty income, except that all
payments made by LICENSEE in fulfillment of Cornell's tax liability in any
particular country may be deducted from or credited against earned royalties or
fees due Cornell. LICENSEE shall pay all bank charges resulting from the
transfer of such royalty payments;

       

      (iv)           if
at any time legal restrictions prevent the prompt remittance of part or all
royalties by LICENSEE with respect to any country where a Licensed Product is
sold or a Sublicense is granted pursuant to this Agreement, LICENSEE shall
convert the amount owed to Cornell into US currency and shall pay Cornell
directly from its US sources of funds for as long as the legal restrictions
apply;

       

      (v)           this
paragraph is intentionally left blank; and

       

      (vi)           in
the event that any patent or patent claim within Patent Rights is held invalid
in a final decision by a patent office from which no appeal or additional patent
prosecution has been or can be taken, or by a court of competent jurisdiction
and last resort from which no appeal has or can be taken, all obligation to pay
royalties based solely on that patent or claim or any claim patentably
indistinct therefrom shall cease as of the date of such final decision. LICENSEE
shall not, however, be relieved from paying any royalties that accrued before
the date of such final decision that are based on another patent or claim not
involved in such final decision.

       

      _____________________________

      
        * ######## = Material omitted pursuant
to a request for Confidential Treatment and filed separately with the Commission
on the date of filing of this Form 8-K.

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

         

      

      (c)           In
the event that royalty, reimbursement and/or fee payments are not received by
Cornell when due, LICENSEE shall pay to Cornell interest charges at a rate of
########*. Such interest shall be calculated from the
date payment was due until actually received by Cornell.

       

      ARTICLE
5.

       

      PATENT
MATTERS

       

      5.1           Patent Prosecution and
Maintenance.

       

      (a)           Provided
that LICENSEE has reimbursed Cornell for Patent Costs pursuant to Paragraph 3.2,
Cornell shall diligently prosecute and maintain the United States and, if
available, foreign patents, and applications in Patent Rights using counsel of
its choice, which counsel shall be reasonably satisfactory to
LICENSEE.  Cornell shall provide LICENSEE with copies of all relevant
documentation relating to such prosecution and LICENSEE shall keep this
documentation confidential. The counsel shall take instructions only from
Cornell, and all patents and patent applications in Patent Rights shall be
assigned solely to CRF or Cornell.

       

      (b)           LICENSEE
shall have reasonable opportunities to participate in all material decisions
with respect to the filing, prosecution and maintenance of patents and patent
applications in the Patent Rights.  Cornell shall consider amending
any patent application in Patent Rights to include claims reasonably requested
by LICENSEE to protect the products contemplated to be sold as Licensed Products
by LICENSEE under this Agreement.

       

      (c)           LICENSEE
may elect to terminate its reimbursement obligations with respect to any patent
application or patent in Patent Rights upon three (3) months' written notice to
Cornell.  Cornell shall use reasonable efforts to curtail further
Patent Costs for such application or patent when such notice of termination is
received from LICENSEE. Cornell, in its sole discretion and at its sole expense,
may continue prosecution and maintenance of said application or patent, and
LICENSEE shall have no further license with respect thereto. Non-payment of any
portion of Patent Costs with respect to any application or patent may be deemed
by Cornell as an election by LICENSEE to terminate its reimbursement obligations
with respect to such application or patent. Cornell is not obligated to file,
prosecute, or maintain Patent Rights to which LICENSEE has terminated its
license hereunder.

       

      (d)           LICENSEE
shall apply for an extension of the term of any patent in Patent Rights if
appropriate under the Drug Price Competition and Patent Term Restoration Act of
1984 and/or European, Japanese and other foreign counterparts of this
law.  LICENSEE shall prepare all documents for such application, and
Cornell shall  execute such documents and shall take any other
additional action as LICENSEE reasonably requests in connection
therewith.

       

      
        _____________________________

        
          * ######## = Material omitted pursuant
to a request for Confidential Treatment and filed separately with the Commission
on the date of filing of this Form 8-K.

        

         

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

         

      

      5.2           Patent
Infringement.

       

      (a)           If
LICENSEE learns of any substantial infringement of Patent Rights, LICENSEE shall
so inform Cornell and provide them with reasonable evidence of the infringement.
Neither party shall notify a third party of the infringement of Patent Rights
without the consent of the other party. Both parties shall use reasonable
efforts and cooperation to terminate the infringement without
litigation.

       

      (b)           LICENSEE
may request Cornell to take legal action against such third party for the
infringement of Patent Rights in the Field and within the Territory. Such
request shall be made in writing and shall include reasonable evidence of such
infringement and damages to LICENSEE. If the infringing activity has not abated
ninety (90) days following LICENSEE’s request, Cornell shall elect to or not to
commence suit on its own account. Cornell shall give notice of its election in
writing to LICENSEE by the end of the one-hundredth (100th) day after receiving
notice of such request from LICENSEE. LICENSEE may thereafter bring suit for
patent infringement at its own expense, if and only if Cornell elects not to
commence suit.  If LICENSEE elects to bring suit, Cornell and/or CRF
may join that suit at its own expense.

       

      (c)           Recoveries
from actions brought pursuant to Paragraph 5.2(b) shall belong to the party
bringing suit. Legal actions brought jointly by CRF and/or Cornell and LICENSEE,
and fully participated in by both, shall be at the joint expense of the parties
and all recoveries shall be shared jointly by them in proportion to the share of
expense paid by each party.

       

      (d)           Each
party shall cooperate with the other in litigation proceedings at the expense of
the party bringing suit. Litigation shall be controlled by the party bringing
the suit, except that CRF and/or Cornell, at their own expense, may be
represented by counsel of its choice in any suit brought by
LICENSEE.

       

      (e)           Neither
Cornell or CRF nor LICENSEE shall enter into a settlement, consent judgment or
other voluntary final disposition of any suit in which infringement of any of
the Patent Rights is claimed without the prior written consent of the other
parties, which consent shall not be unreasonably withheld, conditioned or
delayed.

       

      5.3           Patent
Marking.  LICENSEE shall mark all Licensed Products made, used
or sold under the terms of this Agreement, or their containers, in accordance
with the applicable patent marking laws.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      ARTICLE
6.

       

      GOVERNMENTAL
MATTERS

       

      6.1           Governmental Approval or
Registration.  If this Agreement or any associated transaction
is required by the law of any nation to be either approved or registered with
any governmental agency, LICENSEE shall assume all legal obligations to do so.
LICENSEE shall notify Cornell if it becomes aware that this Agreement is subject
to a United States or foreign government reporting or approval
requirement.  LICENSEE shall make all necessary filings and pay all
costs including fees, penalties, and all other out-of-pocket costs associated
with such reporting or approval process.

       

      6.2           Export Control
Laws.  LICENSEE shall observe all applicable United States and
foreign laws with respect to the transfer of Licensed Products and related
technical data to foreign countries, including, without limitation, the
International Traffic in Arms Regulations and the Export Administration
Regulations.

       

      ARTICLE
7.

       

      TERMINATION
OF THE AGREEMENT

       

      7.1           Termination by
Cornell.

       

      (a)           If
LICENSEE fails to perform or violates, in any  material respect, any
term of this Agreement, then Cornell may give written notice of default (“Notice
of Default”) to LICENSEE. If LICENSEE fails to cure the default within sixty
(60) days of the Notice of Default, Cornell may terminate this Agreement and the
license granted herein by a second written notice (“Notice of Termination”) to
LICENSEE. If a Notice of Termination is sent to LICENSEE, this Agreement shall
automatically terminate on the effective date of that notice. Termination shall
not relieve LICENSEE of its obligation to pay any fees owed at the time of
termination and shall not impair any accrued right of Cornell.

       

      (b)           This
Agreement will terminate immediately, without the obligation to provide written
notices as set forth in Paragraph 7.1(a), if LICENSEE files a claim including in
any way the assertion that any portion of CRF's or Cornell’s Patent Rights is
invalid or unenforceable where the filing is by the LICENSEE, a third party on
behalf of the LICENSEE, or a third party at the written urging of the
LICENSEE.

       

      7.2           Termination by
LICENSEE.

       

      (a)           LICENSEE
shall have the right at any time and for any reason to terminate this Agreement
upon a ninety (90) days’ written notice to Cornell. Said notice shall state
LICENSEE’s reason for terminating this Agreement.

       

      (b)           Any
termination under Paragraph 7.2(a) shall not relieve LICENSEE of any obligation
or liability accrued under this Agreement prior to termination or rescind any
payment made to Cornell or action by LICENSEE prior to the time termination
becomes effective. Termination shall not affect in any manner any rights of
Cornell or CRF arising under this Agreement prior to termination.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      7.3           Survival on
Termination.  The following Paragraphs and Articles shall
survive the termination of this Agreement:

       

      (a)           Article
4 (REPORTS, RECORDS AND PAYMENTS);

       

      (b)           Paragraph
5.2 (Patent Infringement);

       

      (c)           Paragraph
7.4 (Disposition of Licensed Products on Hand);

       

      (d)           Article
8 (LIMITED WARRANTY, REPRESENTATIONS AND INDEMNITY);

       

      (e)           Article
9 (USE OF NAMES AND TRADEMARKS);

       

      (f)           Paragraph
10.2 hereof (Secrecy); and

       

      (g)           Paragraph
10.5 (Failure to Perform).

       

      7.4           Disposition of Licensed Products on
Hand.  Upon termination of this Agreement, LICENSEE may dispose
of all previously made or partially made Licensed Products within a period of
one hundred and twenty (120) days of the effective date of such termination,
provided that the sale of such Licensed Products by LICENSEE, its Sublicensees,
or Affiliates shall be subject to the terms of this Agreement, including but not
limited to, the rendering of reports and payment of royalties required under
this Agreement.

       

      7.5           Grant Back to
Cornell.   If LICENSEE files any patent applications or
has patents issued to it based on work made possible by the exercise of its
rights under this Agreement (“Enabled Patent Rights”), upon termination of this
Agreement by Cornell due to a breach of the Agreement by LICENSEE prior to the
natural expiration of the Term, LICENSEE shall notify Cornell of the Enabled
Patent Rights and shall further grant to Cornell a fully paid-up, irrevocable,
non-exclusive license to the Enabled Patent Rights with the right to grant
Sublicenses to third parties.

       

      ARTICLE
8.

       

      LIMITED
WARRANTY, REPRESENTATIONS AND INDEMNIFICATION

       

      8.1           Limited Warranty.

       

      (a)           Cornell
warrants that it has the lawful right to grant this license.

       

      (b)           The
license granted herein is provided “AS IS” and without WARRANTY OF
MERCHANTABILITY or WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE or, except as
provided in this Agreement, any other warranty, express or implied. Cornell
makes no representation or warranty that the Licensed Product, Licensed Method
or the use of Patent Rights will not infringe any other patent or other
proprietary rights.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      (c)           In
no event shall Cornell or CRF be liable for any incidental, special or
consequential damages resulting from exercise of the license granted herein or
the use of the Invention, Licensed Products or Licensed Methods.

       

      (d)           Nothing
in this Agreement shall be construed as:

       

      (i)           a
warranty or representation by Cornell or CRF as to the validity or scope of any
Patent Rights;

       

      (ii)           a
warranty or representation that anything made, used, sold or otherwise disposed
of under any license granted in this Agreement is or shall be free from
infringement of patents of third parties;

       

      (iii)           an
obligation to bring or prosecute actions or suits against third parties for
patent infringement except as provided in Paragraph 5.2 hereof;

       

      (iv)           conferring
by implication, estoppel or otherwise any license or rights under any patents of
CRF or Cornell other than Patent Rights as defined in this Agreement, regardless
of whether those patents are dominant or subordinate to Patent Rights;
or

       

      (v)           an
obligation to furnish any know-how not provided in Patent Rights.

       

      8.2           Representations.  Cornell
represents and warrants to LICENSEE that:

       

      (a)           Appendix
A, attached hereto, contains a summary of all Patent Rights as of the Effective
Date;

       

      (b)           Cornell
has not granted any option, license, right or interest in or to the Patent
Rights in the Field, and that the execution and delivery of this Agreement and
the performance of its obligations hereunder do not violate or breach any other
agreement to which Cornell is bound;

       

      (c)           To
the best of Cornell's knowledge, with respect to the Patent Rights that exist as
of the Effective Date, Cornell has not received any notice of a claim alleging
that any of the Patent Rights infringes or otherwise violates any intellectual
property or proprietary right of any third party;

       

      (d)           As
of the Effective Date, Cornell has not received any notice that any person or
entity (excluding for this purpose LICENSEE) is infringing the Patent
Rights;

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      (e)           The
Inventors of the subject matter claimed are named in the patents and patent
applications within the Patent Rights, and all such inventors have irrevocably
assigned all their rights and interests therein to Cornell; and

       

      (f)           As
of the Effective Date, Cornell has not received any notice that a patent
application within the Patent Rights is the subject of any pending interference,
opposition, cancellation, protest or other challenge or adversarial
proceeding.

       

      8.3           Indemnification.

       

      (a)           Cornell
shall indemnify, hold harmless and defend, LICENSEE, its officers, directors,
employees, agents, representatives, Affiliates and Sublicensees (collectively,
“Licensee Indemnitees”) from and against any liabilities, claims, suits, losses,
damages, costs, fees, and expenses (collectively, “Claims”) resulting from or
arising out of the gross negligence or willful misconduct of Cornell or any of
its respective officers, directors, employees agents or
representatives.

       

      (b)           LICENSEE
shall indemnify, hold harmless and defend CRF, Cornell, its officers, employees,
and agents; the sponsors of the research that led to the Invention; and the
Inventors of the patents and patent applications in Patent Rights and their
employers (collectively, “Cornell Indemnitees”) against any and all Claims,
resulting from or arising out of exercise of this license or any Sublicense.
This indemnification shall include, but not be limited to, any product
liability.

       

      (c)           A
Cornell Indemnitee shall promptly notify LICENSEE (the “Indemnitor”) of any
Claim with respect to which such Cornell Indemnitee is seeking indemnification
hereunder, and permit the Indemnitor, at Indemnitor’s cost, to defend against
such Claim and shall reasonably cooperate in the defense
thereof.  Neither the Indemnitor nor Cornell Indemnitee shall enter
into, or permit, any settlement of any Claim without the express written consent
of the other, which consent shall not be unreasonably withheld, conditioned or
delayed.  The Cornell Indemnitee may, at its option and expense, have
its own counsel participate in any proceeding which is under the direction of
the Indemnitor and will reasonably cooperate with the Indemnitor or its insurer
in the disposition of any such matter; provided, that if the Indemnitor shall
not defend such Claim, the Cornell Indemnitee shall have the right to defend
such Claim on its own behalf and recover from the Indemnitor all reasonable
attorneys’ fees and expenses incurred by the Cornell Indemnitee during the
course of such defense.

       

      (d)           
LICENSEE, at its sole cost and expense, shall insure its activities in
connection with the work under this Agreement and obtain, keep in force and
maintain insurance or an equivalent program of self insurance as
follows:

       

      (i)           comprehensive
or commercial general liability insurance (contractual liability included) with
limits of at least:  (A) each occurrence, ########*; (B) products/completed operations aggregate,
########*; (C) personal and advertising injury,
########*; and (D)
general aggregate (commercial form only), ########*;
and

       

      _____________________________

      
        * ######## = Material omitted pursuant
to a request for Confidential Treatment and filed separately with the Commission
on the date of filing of this Form 8-K.

      

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      (ii)           the
coverage and limits referred to above shall not in any way limit the liability
of LICENSEE.

       

      (e)           LICENSEE
shall, within ninety (90) days of the Effective Date, furnish Cornell with
certificates of insurance showing compliance with all requirements. Such
certificates shall: (i) provide for thirty (30) day advance written notice to
Cornell of any modification; (ii) indicate that Cornell has been endorsed as an
additional insured party under the coverage referred to above; and (iii) include
a provision that the coverage shall be primary and it shall not participate with
nor shall it be excess over any valid and collectable insurance or program of
self-insurance carried or maintained by Cornell.

       

      (f)           Cornell
shall notify LICENSEE in writing of any claim or suit brought against CRF or
Cornell in respect of which Cornell intends to invoke the provisions of this
Article. LICENSEE shall keep Cornell informed on a current basis of its defense
of any claims under this Article.

       

      ARTICLE
9.

       

      USE
OF NAMES AND TRADEMARKS

       

      9.1           Nothing
contained in this Agreement confers any right to use in advertising, publicity,
or other promotional activities any name, trade name, trademark, or other
designation of either party hereto (including contraction, abbreviation or
simulation of any of the foregoing). Unless required by law, the use by LICENSEE
of the name “Cornell University” or “Cornell Research Foundation” is prohibited,
without the express written consent of Cornell.

       

      9.2           Cornell
may disclose to the Inventors the terms and conditions of this Agreement upon
their request. If such disclosure is made, Cornell shall request that the
Inventors not disclose such terms and conditions to others.

       

      9.3           Cornell
may acknowledge the existence of this Agreement and the extent of the grant in
Article 2 to third parties, but Cornell shall not disclose the financial terms
of this Agreement to third parties, except where CRF or Cornell is required by
law or the order of a court of competent jurisdiction to do so.

       

      9.4           LICENSEE
may acknowledge or make press releases regarding the existence of this Agreement
and the extent of the grant in Article 2, but LICENSEE shall not disclose the
financial terms of this Agreement except where LICENSEE is required by law or
the order of a court of competent jurisdiction to do so. To the extent that
LICENSEE refers to or describes Cornell in any press release, LICENSEE shall
provide Cornell an opportunity to review such press release prior to
dissemination or distribution.

       

      
        

        

      

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      ARTICLE
10.

       

      MISCELLANEOUS
PROVISIONS

       

      10.1           Correspondence.  Any
notice, invoice or payment required to be given to either party under this
Agreement shall be deemed to have been properly given and
effective:

       

      (a)           on
the date of delivery if delivered in person or by courier;

       

      (b)           on
the date of successful transmission if sent by facsimile;

       

      (c)           one
(1) day after the successful transmission in pdf file format if sent by
electronic mail using the Internet; or

       

      (d)           five
(5) days after mailing if mailed by first-class or certified mail, postage paid,
to the respective addresses given below, or to such other address as is
designated by written notice given to the other party.

       

      If sent to LICENSEE:

      

      Neurologix, Inc.

      Attention: Marc Panoff

      One Bridge Plaza

      Fort Lee, NJ 07024

      TEL: 201-592-6451

      FAX: 201-592-0366

      EMAIL: marcpanoff@neurologix.net

       

      with a
copy of all correspondence except patent correspondence,
payments and invoices (which shall not constitute notice)
to:

       

      

      Katten Muchin Rosenman,
LLP

      Attention:  Evan L.
Greebel

      575 Madison Avenue

      New York,
NY  10022-2585

      Tel: (212) 940-8800

      Fax:  (212)
940-8776

      Email:
evan.greebel@kattenlaw.com

      

       If sent to
Cornell:

      

      For all correspondence except payments
-

      

      Cornell Center for Technology
Enterprise and Commercialization

      Attention: Executive
Director

      395 Pine Tree Road, Suite
310

      Ithaca, NY 14850

      FAX: 607-254-5454

      TEL: 607-254-5236

      EMAIL:
cctecconnect@cornell.edu

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      For all payments
-

      

      If sent by
mail:

      Cornell Center for Technology
Enterprise and Commercialization

      PO Box 6899

      Ithaca, NY 14850-6899

      

      If remitted by electronic
payments via ACH or Fed Wire: 

      

      
        	
                Receiving
      bank name:

              	
                Tompkins
      Trust Co.

              
	
                Bank
      account no.:

              	
                ########*

              
	
                Bank
      routing (ABA) no.:

              	
                ########*

              
	
                Bank
      account name:

              	
                ########*

              
	
                Bank
      ACH format code:

              	
                Not
      required

              
	
                Bank
      address:

              	
                P.O.
      460, Ithaca, NY  14850

              
	
                Additional
      information:

              	
                Reference
      ########*

                Agreement
      No.: ########* 

                Department
      contact:  Lewis Goodwin

              

      

       

      A FAX
copy of the transaction receipt should be sent to Associate Director for Finance
and Operations at:  607-254-5454. LICENSEE is responsible for all bank
charges of wire transfer of funds for payments. The bank charges should not be
deducted from the total amount due to Cornell.

       

      10.2           Secrecy.

       

      (a)           “Confidential
Information” shall mean information relating to the Invention and disclosed
by Cornell to LICENSEE during the term of this Agreement, which if disclosed in
writing shall be marked “Confidential”, or if first disclosed otherwise, shall
within thirty (30) days of such disclosure be reduced to writing by Cornell and
sent to LICENSEE.

       

      (b)           LICENSEE
shall:

       

      (i)           use
the Confidential Information for the sole purpose of performing under the terms
of this Agreement;

       

      (ii)           safeguard
Confidential Information against disclosure to others with the same degree of
care as it exercises with its own data of a similar nature; and

       

      _____________________________

      
        * ######## = Material omitted pursuant
to a request for Confidential Treatment and filed separately with the Commission
on the date of filing of this Form 8-K.

      

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      (iii)           not
disclose Confidential Information to others (except to its employees, agents or
consultants, Affiliates and Sublicensees who are bound to LICENSEE by a like
obligation of confidentiality) without the express written permission of
Cornell, except that LICENSEE shall not be prevented from using or disclosing
any of the Confidential Information that:

       

      
        	
                 
      

              	
                (A)

              	
                LICENSEE
      can demonstrate by written records was previously known to
    it;

              

      

       

      
        	
                 
      

              	
                (B)

              	
                is
      now, or becomes in the future, public knowledge other than through acts or
      omissions of LICENSEE;

              

      

       

      
        	
                 
      

              	
                (C)

              	
                is
      lawfully obtained by LICENSEE from sources independent of Cornell;
      or

              

      

       

      
        	
                 
      

              	
                (D)

              	
                is
      required to be disclosed by law or a court of competent
      jurisdiction.

              

      

       

      (c)           The
secrecy obligations of LICENSEE with respect to Confidential Information shall
continue for a period ending five (5) years from the termination date of this
Agreement.

       

      10.3           Assignability.  This
Agreement may not be assigned by Cornell or LICENSEE without the written consent
of the other parties, except for an assignment or transfer to (i) an Affiliate
or (ii) a purchaser or successor-in-interest in the event of a merger,
consolidation, or sale of substantially all of LICENSEE’s stock or assets or
business and/or pursuant to any reorganization qualifying under Section 368 of
the Internal Revenue Code of 1986, as amended, provided that such
successor-in-interest or purchaser agrees in writing to assume all of LICENSEE’s
obligations under this Agreement.  Each party to this Agreement shall
provide written notice to the other pursuant to Section 10.1 of this Agreement,
at least fifteen (15) calendar days prior to any assignment of this
Agreement.

       

      10.4           No Waiver.  No
waiver by either party of any breach or default of any covenant or agreement set
forth in this Agreement shall be deemed a waiver as to any subsequent and/or
similar breach or default.

       

      10.5           Failure to
Perform.  In the event of a failure of performance due under
this Agreement and if it becomes necessary for either party to undertake legal
action against the other on account thereof, then the prevailing party shall be
entitled to reasonable attorney's fees in addition to costs and necessary
disbursements.

       

      10.6           Governing
Laws.  THIS AGREEMENT SHALL BE INTERPRETED AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, but the scope and validity of
any patent or patent application shall be governed by the applicable laws of the
country of the patent or patent application.

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      10.7           Force Majeure.  A
party to this Agreement may be excused from any performance required herein if
such performance is rendered impossible or unfeasible due to any catastrophe or
other major event beyond its reasonable control, including, without limitation,
war, riot, and insurrection; laws, proclamations, edicts, ordinances, or
regulations; strikes, lockouts, or other serious labor disputes; and floods,
fires, explosions, or other natural disasters.  When such events have
abated, the non-performing party's obligations herein shall resume.

       

      10.8           Headings.  The
headings of the several Paragraphs are inserted for convenience of reference
only and are not intended to be a part of or to affect the meaning or
interpretation of this Agreement.

       

      10.9           Entire Agreement. This
Agreement embodies the entire understanding of the parties and supersedes all
previous communications, representations or understandings, either oral or
written, between the parties relating to the subject matter hereof.

       

      10.10         Amendments.  No
amendment or modification of this Agreement shall be valid or binding on the
parties unless made in writing and signed on behalf of each party.

       

      10.11         Severability.  In
the event that any of the provisions contained in this Agreement is held to be
invalid, illegal, or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not affect any other provisions of this Agreement, and
this Agreement shall be construed as if the invalid, illegal, or unenforceable
provisions had never been contained in it.

       

      10.12         Counterparts.  This
Agreement may be executed in counterparts, each of which shall be deemed an
original and all of which shall together constitute one and the same
instrument.

       

      10.13         Expenses.  Except as
expressly set forth herein, all expenses incurred by the parties in connection
with this Agreement shall be borne wholly by the party incurring such
expense.

       

      [SIGNATURE
PAGE TO FOLLOW]

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      IN
WITNESS WHEREOF, both Cornell and LICENSEE have executed this Agreement,
in duplicate originals, by their respective and duly authorized officers on the
day and year written.

       

      
        	

                NEUROLOGIX,
      INC.

              	 	

                CORNELL
      UNIVERSITY

              	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:  	
                /s/
      John E. Mordock 

              	 	By:  	
                /s/
      Brian J. Kelly

              	 
	 	
                

                  (Signature
      of an authorized officer)

                

              	 	 	
                (Signature
      of an authorized officer)

              	 
	Name:   	John
      E. Mordock 	 	Brian
      J. Kelly, Ph.D.	 
	Title:  	
                President
      & Chief Executive Officer

              	 	

                Director,
      Technology Commercialization and Liaison

              	 

      

    

     

    
      	 	 	 	 	 	 
	By:  	
              /s/
      Marc L. Panoff

            	 	 	 	 
	 	
              

                (Signature
      of an authorized officer)

              

            	 	 	 	 
	Name:   	Marc
      L. Panoff	 	 	 
	Title:  	
              Chief
      Financial Officer

            	 	 	 
	 	 	 	 	 

    

    
      	Date:  	1/13/09 	 	Date:  	January
      7, 2009 	 

    

    

      	

              ATTEST:

            	 	

              ATTEST:

            	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:  	
              /s/
      Rita
      Raftery

            	 	By:  	
              /s/
      Carol J. Dempster

            	 
	 	
              

                

                  (Signature
      of witness)

                

              

            	 	 	
              (Signature
      of witness)

            	 
	

              Name:

            	Rita
      Raftery 	 	Name:  	Carol
      J. Dempster 	 
	Date:  	1/13/09 	 	Date:  	Jan
      7, 2009

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