Document:

exv10w01

Exhibit 10.01

MASTER SETTLEMENT AGREEMENT

          This Master Settlement Agreement (“Settlement Agreement”) is made by and among the undersigned
Plaintiffs’ and Claimants’ Counsel and Matrixx Initiatives, Inc., Zicam LLC and other defendants
identified in Schedule B (collectively “the Parties”). The Parties intend for this Settlement
Agreement to fully, finally, and forever resolve, discharge and settle the claims between
Plaintiffs and Claimants and Defendants.

RECITALS

          A. Plaintiffs and Claimants allege to have lost their sense of smell and/or taste from use of
Zicam Cold Remedy and other products and allege that Defendants made misrepresentations and engaged
in other wrongful acts concerning Zicam Cold Remedy and other products.

          B. Matrixx Initiatives, Inc., Zicam LLC and all other defendants deny all liability and
wrongdoing in these actions.

          C. As of November 22, 2010, Defendants were aware of approximately one thousand and fourteen
(1,014) Plaintiffs named in two hundred and eighty-three (283) cases pending nationwide against
Defendants alleging that Plaintiffs lost their sense of smell and/or taste as a result of Zicam
Cold Remedy and other products and that Defendants engaged in wrongful acts concerning Zicam Cold
Remedy and other products. The vast majority of these claims are pending in the following
proceedings:

               (1) In Re: Zicam Cold Remedy Products Liability, Marketing and Sales Practices Litigation,
Federal Multi-District Litigation No. 2096, United States District Court for the District of
Arizona;

               (2) Medel, David, et al. v. Matrixx Initiatives, Inc., et al., Case No. CV 2007- 020006,
(Consolidated Proceeding), Superior Court of the State of Arizona, Maricopa County;

               (3) Matrixx Initiatives, Inc. Product Cases, Judicial Council Coordination Proceeding No.
4616, Superior Court of the State of California, San Francisco County.

          D. Defendants are further aware of approximately one thousand one hundred and twenty-seven
(1,127) Claimants who are known to allegedly have claims but have yet to file a lawsuit.

TERMS OF SETTLEMENT

          Now, therefore, in consideration of the obligations and mutual promises set forth herein, it
is agreed as follow:

 

 

     1. Definitions.

          1.1. The following definitions shall apply to this Settlement Agreement.

          1.2. “Claims Committee” means individuals to be appointed by Lead Plaintiffs’ Counsel who
will be responsible for recommending to the Third Party Administrator the amount of Settlement
Funds to be allocated to each Plaintiff and Claimant under the Settlement Program.

          1.3. “Effective Date” means the date that this Settlement Agreement is fully executed by
all of the Parties.

          1.4. “Escrow Agent” means a Marshall & Ilsley Trust Company, N.A. The Escrow Agent shall
be responsible for holding funds to be distributed pursuant to the Settlement Program.

          1.5. “Escrow Account” means an account at a financial institution to be managed by the
Escrow Agent. Settlement Funds will be deposited by Defendants Matrixx Initiatives, Inc. and
Zicam LLC into the Escrow Account as set forth in Paragraphs 4.1, 4.2, 4.3, 4.4 and 4.6 of this
Settlement Agreement.

          1.6. “Lead Defense Counsel” means Charles Preuss and Alan Lazarus of Drinker Biddle & Reath
LLP.

          1.7. “Lead Plaintiffs’ Counsel” means Lead MDL Counsel Charles Zimmerman of Zimmerman Reed
P.L.L.P., Lead Counsel for California Plaintiffs Steven Skikos of Skikos, Crawford, Skikos,
Koseph & Millican LLP and Lead Counsel for Arizona Plaintiffs Stephen Leshner of Stephen I.
Leshner, P.C.

          1.8. “Notification Date” means the date that Lead Plaintiffs’ Counsel notifies Lead Defense
Counsel pursuant to Paragraph 3.2 that the following has occurred: (a) ninety-seven percent
(97%) of all Plaintiffs and Claimants identified in Revised Schedule A who used a Zicam Cold
Remedy Nasal Gel dispensed with a single hole actuator pump have enrolled and agreed to
participate in the Settlement Program and (b) ninety-four percent (94%) of all Plaintiffs and
Claimants identified in Revised Schedule A who only used other Zicam products have enrolled and
agreed to participate in the Settlement Program.

          1.9. “Plaintiffs and Claimants” means the individuals identified in Revised Schedule A who
are known to have claims as of the Effective Date.

          1.10. “Plaintiffs’ and Claimants’ Counsel” means counsel who represent the Plaintiffs and
Claimants identified on Revised Schedule A that are known as of [ the Effective Date.

          1.11. “Releasees” means all defendants who are being released as part of the Release
attached hereto as Schedule D.

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          1.12. “Settlement Funds” means the funds to be deposited by Defendants Matrixx Initiatives,
Inc. and Zicam LLC under Paragraphs 4.1, 4.2, 4.3, 4.4 and 4.6 of this Settlement Agreement.

          1.13. “Settlement Program” means a program to be developed by Plaintiffs’ Counsel that
provides for the distribution of Settlement Funds by a Third Party Administrator.

          1.14. “Third Party Administrator” means an entity or person to be selected by Lead
Plaintiffs’ Counsel that will be responsible for allocating Settlement Funds based on the
Settlement Program.

     2. Reconciliation of Schedule A

          2.1. This Settlement Agreement encompasses all Plaintiffs and Claimants known by
Plaintiffs’ and Claimants’ Counsel as of the Effective Date.

          2.2. The names of all Plaintiffs and Claimants known by Defendants as of November 22, 2010
are identified on the attached Schedule A.

          2.3. Plaintiffs’ and Claimants’ Counsel shall verify that Plaintiffs and Claimants
identified on Schedule A are still pursuing their claims and delete from Schedule A any
individuals who are no longer pursuing a claim or are no longer represented by counsel.
Plaintiffs’ and Claimants’ Counsel shall add to Schedule A any additional Plaintiffs or
Claimants who become known to them up through the Effective Date of this Settlement Agreement.

          2.4. Lead Plaintiffs’ Counsel shall provide to Lead Defense Counsel a Revised Schedule A no
later than 5:00 p.m. (Pacific Standard Time) on December 20, 2010 that includes one hundred
percent of all Plaintiffs and Claimants known by Plaintiffs’ and Claimants’ Counsel as of the
Effective Date. Revised Schedule A shall include the name of each Plaintiff or Claimant, the
product used, the caption of the lawsuit, if any, and the name of the attorney or attorneys
representing each Plaintiff or Claimant.

          2.5. In submitting Revised Schedule A to Defense Counsel pursuant to Paragraph 2.4, Lead
Counsel for MDL Plaintiffs represent that they have communicated with all lawyers representing
one or more Plaintiffs or Claimants on Revised Schedule A and that each of those lawyers have
agreed to be bound by the terms of this Settlement Agreement and have confirmed that one hundred
percent of all Plaintiffs and Claimants represented by his or her firm as of the Effective Date
are to be included on Revised Schedule A.

          2.6. Defendants’ Right to Void and Cancel the Settlement Agreement Upon Reconciliation
of Schedule A. If the number of Plaintiffs and Claimants on the Revised Schedule A contains
three percent (3%) less than the number of Plaintiffs and Claimants identified on the original
Schedule A attached hereto then Defendants have the right to void and cancel this Settlement
Agreement in its entirety in their sole discretion. Lead Defense Counsel shall notify Lead
Plaintiffs’ Counsel of any decision to void and cancel the

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Settlement Agreement pursuant to this Paragraph no later than five (5) days after receiving
Revised Schedule A.

     3. Scope of Settlement

          3.1. This Settlement Agreement encompasses all Plaintiffs and Claimants known by
Plaintiffs’ and Claimants’ Counsel as of the Effective Date Each Plaintiff or Claimant known
must be identified on Revised Schedule A and will be used to calculate whether the threshold
requirements under Paragraph 3.2 are met.

          3.2. No later than 5:00 p.m. (Pacific Standard Time) on January 20, 2011, Lead Plaintiffs’
Counsel shall notify Lead Defense Counsel whether (a) ninety-seven percent (97%) of all
Plaintiffs and Claimants who used a Zicam Cold Remedy Nasal Gel dispensed with a single hole
actuator pump identified on Revised Schedule A have enrolled and agreed to participate in the
Settlement Program and (b) ninety-four percent (94%) of all Plaintiffs and Claimants who only
used other Zicam products identified on Revised Schedule A have enrolled and agreed to
participate in the Settlement Program. The notice to be sent by Lead Plaintiffs’ Counsel to
Lead Defense Counsel under this Paragraph shall identify by name each Plaintiff and Claimant who
has agreed to participate in the Settlement Program and the product used.

          3.3. Defendants’ Right to Void and Cancel the Settlement Agreement If Thresholds Are
Not Met. If either or both of the ninety-seven percent (97%) and ninety-four percent (94%)
thresholds set forth in Paragraph 3.2 are not met by 5:00 p.m. (Pacific Standard Time) on
January 20, 2011, Defendants have the right and option to void and cancel this Settlement
Agreement in its entirety at their sole discretion.

     4. Funding of Settlement

          4.1. Defendant Matrixx Initiatives, Inc. and Zicam LLC will pay a total of no more than
fifteen million five hundred thousand dollars ($15,500,000) to settle all claims of Plaintiffs
and Claimants who enroll and agree to participate in the Settlement Program, subject to any
deduction in payment of Settlement Funds set forth in Paragraph 4.6. These Settlement Funds
include all costs, attorneys’ fees (including any common benefit fees) and other expenses and
shall be paid pursuant to Paragraphs 4.2, 4.3, 4.4 and 4.6 below. In no event will Defendants
be responsible for payment of additional settlement funds to settle these claims.

          4.2. Subject to Defendants’ right to void and cancel this Settlement Agreement pursuant to
Paragraph 2.5,no later than seven (7) business days after Lead Defense Counsel receives Revised
Schedule A, Defendants Matrixx Initiatives, Inc. and Zicam LLC will deposit eleven million five
hundred thousand dollars ($11,500,000) into the Escrow Account to be managed by the Escrow Agent
for purposes of distributing the Settlement Funds under the Settlement Program. In the event
that the threshold number of Plaintiffs and Claimants set forth in Paragraph 3.2 do not agree to
participate in the Settlement Program and the Defendants void and cancel this Settlement
Agreement under Paragraph 3.3, the Escrow

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Agent shall return Settlement Funds deposited under this Paragraph to Defendants Matrixx
Initiatives, Inc. and Zicam LLC within five (5) business days.

          4.3. An additional two million dollars ($2,000,000) in Settlement Funds shall be deposited
by Defendants Matrixx Initiatives, Inc. and Zicam LLC into the Escrow Account no later than
eight months after the initial settlement payment is made pursuant to Paragraph 4.2. In the
event that Defendants have exercised their right to void and cancel the Settlement Agreement
pursuant to Paragraphs 2.5 or 3.3, no payment shall be made under this Paragraph.

          4.4. A final payment of two million dollars ($2,000,000) in Settlement Funds, minus the
amount to be deducted under Paragraph 4.6, shall be deposited by Defendants Matrixx Initiatives,
Inc. and Zicam LLC into the Escrow Account no later than twenty months after the initial
settlement payment is made pursuant to Paragraph 4.2.. In the event that Defendants have
exercised their right to void and cancel the Settlement Agreement pursuant to Paragraphs 2.5 or
3.3, no payment shall be made under this Paragraph.

          4.5. Any interest earned from the Escrow Account shall be made available for Plaintiffs’
Counsel to pay costs associated with administering, or payments to Plaintiffs or Claimants
under, the Settlement Program. If Defendants exercise their right to cancel and void this
Settlement Agreement, all interest shall be returned to Defendants Matrixx Initiatives, Inc. and
Zicam LLC.

          4.6. No later than 5 p.m. (Pacific Standard Time) on January 20, 2011, Lead Plaintiffs’
Counsel shall provide to Lead Defense Counsel a list of each Plaintiff or Claimant who has opted
not to participate in the Settlement Program. As to each Plaintiff or Claimant identified in
Revised Schedule A who elected not to participate in the Settlement Program, Lead Plaintiffs’
Counsel shall provide to Lead Defense Counsel within thirty (30) calendar days of the
Notification Date the amount that these individuals would qualify for under the Settlement
Program if they had agreed to participate. To the extent that Defendants dispute the amount of
the award based on the criteria used for allocating awards, Lead Plaintiffs’ Counsel and Defense
Counsel agree to have the Third Party Administrator resolve the disputed amount. Defendants
shall be entitled to a reduction in the amount of Settlement Funds to be deposited under
Paragraph 4.4 for each Plaintiff or Claimant who opts not to participate in the Settlement
Program. If the amount of the award is unknown based on the information available to Lead
Plaintiffs’ Counsel, Defendants shall be entitled to a reduction in the amount of the Settlement
Funds to be deposited under Paragraph 4.4 based on the average award for a Plaintiff or Claimant
who used the same product and delivery device.

          4.7. No funds shall be paid from the Escrow Account to any Plaintiff, Claimant or counsel
without the express consent of Lead Plaintiffs’ Counsel and Lead Defense Counsel.

     5. Settlement Program

          5.1. Plaintiffs’ Counsel will draft and develop a Settlement Program that sets forth
eligibility criteria for payments that will be made to individual Plaintiffs and Claimants who
enroll in the Settlement Program.

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          5.2. Within twenty (20) calendar days of the Effective Date, Lead Plaintiffs’ Counsel will
provide to Lead Defense Counsel the Settlement Program describing how Settlement Funds will be
distributed to eligible Plaintiffs and Claimants.

          5.3 A Claims Committee to be selected by Lead Plaintiffs’ Counsel will be responsible for
recommending allocations of the Settlement Funds to each Plaintiff and Claimant pursuant to the
Settlement Program with the amounts to be approved by the Third Party Administrator.

     6. Known Plaintiffs and Claimants

          6.1. The undersigned Plaintiffs’ Counsel represent that as of the Effective Date they are
not aware of any other cases or claims involving Zicam Cold Remedy or other Zicam products
alleging loss of smell and/or taste other than those that will be identified on Revised Schedule
A and agree to join all Plaintiffs and Claimants known as of the Effective Date on Revised
Schedule A. Lead Plaintiffs’ Counsel for MDL Plaintiffs further represent that each Plaintiff’s
and Claimant’s counsel with one or more Plaintiffs or Claimants on Revised Schedule A have
represented that Revised Schedule A includes one hundred percent (100%) of all Plaintiffs and
Claimants represented by his or her firm as of the Effective Date and that each Plaintiff’s and
Claimant’s Counsel have represented that they agree to be bound by the terms of this Settlement
Agreement.

     7. Medicare Eligibility

          7.1. Each Plaintiff or Claimant who elects to participate in the Settlement Program shall
submit to Lead Defense Counsel full and complete responses to the questions set forth in
Schedule C hereto within thirty (30) days of the Notification Date. No Settlement Funds may be
distributed to any Plaintiff or Claimant who has not complied with this requirement.

     8. Releases and Dismissals

          8.1. Plaintiffs and Claimants who agree to participate in the Settlement Program will
execute Releases and Dismissals as described in Paragraphs 8.2 and 8.3 below. Under no
circumstances shall any payment from the Settlement Funds be made to a Plaintiff or Claimant who
has not fully executed a Release and Dismissal and provided a signed copy to Lead Defense
Counsel.

          8.2. Releases. Each Plaintiff and Claimant who has elected to participate in the
Settlement Program shall execute a Release in the same form as set forth in Schedule D attached
hereto and provide it to Lead Defense Counsel within thirty (30) calendar days of the
Notification Date.

          8.3. Dismissals. Each Plaintiff who has agreed to participate in the Settlement
Program shall complete and execute a Dismissal in the same form as set forth in Schedule E
attached hereto and provide it to Lead Defense Counsel within thirty (30) calendar days of the
Notification Date. Defense Counsel shall not file the Dismissal with the Court until final
payment is disbursed to the Plaintiff or Claimant under the Settlement Program. Lead
Plaintiffs’ Counsel shall notify Lead Defense Counsel within five (5) calendar days after a

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check is issued from the Escrow Account to individual Plaintiffs and Claimants as payment
under the Settlement Program.

     9. Confidentiality

          9.1. Plaintiffs, Claimants and their counsel shall maintain in strict confidence any and
all information disclosed to them by Defendants or their counsel in the negotiations leading to
this settlement, the contents of the Release and the consideration that may be paid to the
Plaintiff or Claimant, and shall take every reasonable precaution to prevent disclosure of such
information to third parties, except as may be disclosed pursuant to Paragraph 8.2. Plaintiffs
and Claimants shall strictly comply with the confidentiality provisions of their Release.
Plaintiffs and Claimants shall refrain from making, causing to be made, or participating in
making of any public announcements concerning their lawsuit or their settlement, and shall
refrain from contacting, causing another to contact, or participating in the dissemination of
information concerning their lawsuit or their settlement to the news media, any attorney or
organization or attorneys, or any consumer organization, except as permitted under Paragraph
9.2. Plaintiffs and Claimants shall cooperate in efforts to preserve confidentiality of this
settlement.

          9.2. The Parties and their counsel shall not issue any press releases or have any
communications to the public concerning this Settlement Agreement except (1) as agreed to by the
Parties, (2) where Defendants or their counsel determine it is necessary or appropriate to
comply with reporting requirements of the Securities and Exchange Commission, or (3) as required
by the Court. The Parties agree to draft a joint press release briefly describing that a
settlement has been reached.

     10. Notices

          10.1. All notices, demands or other communications in connection with this Settlement
Agreement shall be in writing and shall be deemed to have been given as of the second business
day after emailing through electronic mail, addressed as follows:

     Lead Counsel for MDL Plaintiffs

Charles Zimmerman

Zimmerman Reed, PLLP

14646 North Kierland Boulevard, Ste 145

Scottsdale, AZ 85254

Telephone: (480) 348-6400

Facsimile: (480) 348-6415

Charles.zimmerman@zimmreed.com

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     Lead Counsel for Arizona Plaintiffs

Stephen I. Leshner

Stephen T. Leshner, P.C.

1440 E. Missouri Ave., Ste. 265

Phoenix, AZ 85014

Telephone: (602) 266-9000

Facsimile: (602) 266-9134

stevesteveleshner.com

     Lead Counsel for California Plaintiffs

Steven J. Skikos

Skikos, Crawford, Skikos Joseph & Millican LLP

625 Market Street, 11th Floor

San Francisco, CA 94105-3302

Telephone: (415) 546-7300

Facsimile: (415) 546-7301

sskikos@skikoscrawford.com

     Lead Counsel for Defendants

Charles Preuss

Alan Lazarus

Drinker Biddle & Reath LLP

50 Fremont Street, 20th Floor

San Francisco, CA 95105

Telephone: (415) 591-7500

Fax: (415) 591-7510

Email: alan.lazarus@dbr.com

     11. Settlement Efforts

          11.1. The Parties acknowledge and agree that there will need to be substantial efforts by all
concerned to effectuate the terms of the Settlement Agreement. Plaintiffs’ counsel will seek a
stay of any discovery, case specific or generic, or trials which are pending in any court while the
parties continue their best efforts of the settlement of the claims subject to this Agreement.

     12. Miscellaneous

          12.1. This Settlement Agreement and all negotiations, statements and proceedings in
connection herewith shall not, in any event, be construed or deemed to be evidence of an
admission or concession on the part of the Plaintiffs, any Defendants, any of the Releasees, or
any other person as an admission of liability or wrongdoing by them, or of the merit of any
claim or defense, and shall not be offered into evidence in any action or proceeding (except an
action or proceeding to enforce this Settlement Agreement) or be used in any way as an

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admission, concession or evidence of any liability or wrongdoing of any nature, and shall
not be construed or deemed to be evidence of, an admission or concession that the Plaintiffs or
any other person has or has not suffered any damages, except that the Defendants and Releasees
may file this Settlement Agreement in any action that may be brought against them in order to
support a defense or counterclaim based on principles of res judicata, collateral estoppel,
release, good faith settlement, judgment bar or reduction or any other similar theory of claim
preclusion or issue preclusion or similar defense or counterclaim.

          12.2. The Parties agree that the terms and conditions of this Settlement Agreement are the
result of lengthy, intensive arms-length negotiations between the Parties and that this
Settlement Agreement shall not be construed in favor of or against any party by reason of the
extent to which any party or his, her or its counsel participated in the drafting of this
Settlement Agreement. This is an integrated agreement. All terms of this Settlement Agreement
shall be governed by and interpreted according to the substantive laws of Arizona without regard
to its choice of law or conflict of law principles.

          12.3. The Parties acknowledge that it is their intent to consummate this Settlement
Agreement and agree to cooperate to the extent reasonably necessary to effectuate and implement
all terms and conditions of this Settlement Agreement and to exercise their reasonable best
efforts to accomplish the forgoing terms and conditions of this Settlement Agreement.

          12.4. This Settlement Agreement constitutes the entire agreement between the Parties with
regard to the subject matter hereof and supersedes any prior or contemporaneous written or oral
agreements or understandings between the Parties.

          12.5. The terms and provisions of this Settlement Agreement may be amended or modified only
by a written agreement which is signed by counsel for the Parties who have executed this
Settlement Agreement. No representations, warranties, or inducements have been made by any
party concerning this Settlement Agreement other than the representations, warranties, and
covenants contained and memorialized in this Settlement Agreement. Except as otherwise provided
for herein, each party shall bear his, her, or its own costs.

          12.6. The Parties intend for this Settlement Agreement to be a final and complete
resolution of all claims, known and unknown, of Plaintiffs and Claimants identified in Schedule
A against any of the Defendants identified in Schedule B. The settlement compromises claims
that are contested and shall not be deemed an admission by any Party as to the merits of any
claim or defense.

          12.7. Defendants and Releasees may file this Settlement Agreement in any action that may be
brought against them in order to support a defense, claim, or counterclaims based on principles
of res judicata, collateral estoppel, release, good faith settlement, judgment bar or reduction,
or any other theory of claim preclusion or issue preclusion or similar defense or counterclaim.

          12.8. Each counsel executing this Settlement Agreement hereby warrants that he or she has
full authority to do so.

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          12.9. This Settlement Agreement may be executed in counterparts, and when each party has
assigned and delivered at least one such counterpart, each counterpart shall be deemed an
original, and when taken together with other original counterparts, shall constitute one
Settlement Agreement, which shall be binding upon and effective as to all Parties and the
Settlement Class.

          12.10. This Settlement Agreement shall be binding upon, and inure to the benefit of, the
successors and assigns of the Parties.

          12.11. The United States District Court for the District of Arizona shall retain exclusive
jurisdiction over all matters relating to the implementation and enforcement of the Settlement
Agreement.

	 	 	 	 	 
	Dated: December 13, 2010 	LEAD COUNSEL FOR MDL PLAINTIFFS

ZIMMERMAN REED P.L.L.P.

 	 
	 	/s/ Charles S. Zimmerman
 	 
	 	Charles S. Zimmerman 	 
	 	 	 
	 
	Dated: December 13, 2010 	LEAD COUNSEL FOR ARIZONA PLAINTIFFS

STEPHEN LESHNER, P.C.

 	 
	 	/s/ Stephen Leshner
 	 
	 	Stephen Leshner 	 
	 	 	 
	 
	Dated: December 13, 2010 	LEAD COUNSEL FOR CALIFORNIA PLAINTIFFS

SKIKOS CRAWFORD SKIKOS KOSEPH & MILLICAN LLP

 	 
	 	/s/ Steven J. Skikos
 	 
	 	Steven J. Skikos 	 
	 	 	 
	 
	Dated: December 13, 2010 	PLAINTIFFS’ STEERING COMMITTEE

NEBLETT, BEARD & ARSENAULT

 	 
	 	/s/ Richard Arsenault
 	 
	 	Richard Arsenault 	 
	 	 	 
	 

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[indicated by consent]

	 	 	 	 	 
	Dated: December 13, 2010 	PLAINTIFFS’ STEERING COMMITTEE

HARKE & CLASBY, LLP

 	 
	 	/s/ Howard Bushman
 	 
	 	Howard Bushman 	 
	 	 	 
	 
	Dated: December 13, 2010 	PLAINTIFFS’ STEERING COMMITTEE

SANDERS VIENER GROSSMAN, P.C.

 	 
	 	/s/ Marc Grossman
 	 
	 	Marc Grossman 	 
	 	 	 
	 
	Dated: December 13, 2010 	PLAINTIFFS’ STEERING COMMITTEE

LIEFF CABRASER HEIMANN & BERNSTEIN, LLP

 	 
	 	/s/ Kent L. Klaudt
 	 
	 	Kent L. Klaudt 	 
	 	 	 
	 
	Dated: December 13, 2010 	PLAINTIFFS’ STEERING COMMITTEE

HARWOOD FEFFER, LLP

 	 
	 	/s/ Jeffrey Norton
 	 
	 	Jeffrey Norton 	 
	 	 	 
	 
	Dated: December 13, 2010 	PLAINTIFFS’ STEERING COMMITTEE

SAUNDERS & WALKER, PA

 	 
	 	/s/ Joseph Saunders
 	 
	 	Joseph Saunders 	 
	 	 	 

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	Dated: December 13, 2010 	PLAINTIFFS’ STEERING COMMITTEE

SEEGER SALVAS, LLP

 	 
	 	/s/ Kenneth Seeger
 	 
	 	Kenneth Seeger 	 
	 	 	 
	 
	Dated: December 13, 2010 	PLAINTIFFS’ STEERING COMMITTEE

MOTLEY RICE

 	 
	 	/s/ Fred Thompson, III
 	 
	 	Fred Thompson, III 	 
	 	 	 
	 
	Dated: December 13, 2010 	PLAINTIFFS’ STEERING COMMITTEE

AYLSTOCK, WITKIN, KREIS & OVERHOLTZ, PLLC

 	 
	 	/s/ Justin Watkins
 	 
	 	Justin Watkins 	 
	 	 	 
	 
	Dated: December 13, 2010 	PLAINTIFFS’ COUNSEL

THOMAS & WAN

 	 
	 	/s/ Michelle Wan
 	 
	 	Michelle Wan 	 
	 	 	 
	 
	Dated: December 13, 2010 	PLAINTIFFS’ COUNSEL

THE LANIER FIRM

 	 
	 	/s/ Rick Meadow
 	 
	 	Rick Meadow 	 
	 	 	 

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	Dated: December 13, 2010 	LEAD DEFENSE COUNSEL

DRINKER BIDDLE & REATH LLP

 	 
	 	/s/ Alan J. Lazarus
 	 
	 	Charles Preuss 	 
	 	
Alan Lazarus 	 
	 
	Dated: December 13, 2010 	DEFENSE COUNSEL

OSBORN MALEDON

 	 
	 	/s/ David Rosenbaum
 	 
	 	David Rosenbaum 	 
	 	 	 
	 
	Dated: December 13, 2010 	MATRIXX INITIATIVES, INC. AND ZICAM LLC

 	 
	 	/s/ William J. Hemelt
 	 
	 	William J. Hemelt 	 
	 	President of Matrixx Initiatives, Inc. 	 
	 

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Exhibit 4.1

AMENDMENT NO. 2 TO RIGHTS AGREEMENT

          THIS AMENDMENT NO. 2 TO RIGHTS AGREEMENT (this “Amendment”), dated as of February 6, 2011, is
entered into by and between Pride International, Inc., a Delaware corporation (the “Company”), and
American Stock Transfer & Trust Company, LLC, as
rights agent (the “Rights Agent”), pursuant to Section
27 of the Rights Agreement, dated as of September 12, 2001, between the Company and the Rights
Agent, as amended by the Amendment to Rights Agreement, dated as of January 29, 2008, between the
Company and the Rights Agent (as so amended, the “Rights Agreement”).

          WHEREAS, Section 27 of the Rights Agreement provides that, at any time when the Rights (as
defined in the Rights Agreement) are redeemable, the Company may in its sole and absolute
discretion, and the Rights Agent shall, if the Company so directs, supplement or amend any
provision of the Rights Agreement in any respect without the approval of any holders of Rights or
holders of Common Stock (as defined in the Rights Agreement), and Section 23 of the Rights
Agreement provides that the Board of Directors of the Company may redeem the Rights at any time
before a Person becomes an Acquiring Person;

          WHEREAS, the Company proposes to enter into an Agreement and Plan of Merger, to be dated as of
February 6, 2011 (the “Ensco Merger Agreement”), with Ensco plc, a public limited company organized
under the laws of England and Wales (“Parent”), ENSCO Ventures LLC, a Delaware limited liability
company and an indirect, wholly owned subsidiary of Parent (“Merger Sub”), and ENSCO International
Incorporated, a Delaware corporation and an indirect, wholly owned subsidiary of Parent (“Delaware
Sub”); and

          WHEREAS, no Person is currently an Acquiring Person, the Rights are currently redeemable, and
a majority of the whole Board of Directors of the Company has determined that it is advisable and
in the best interest of the Company and its stockholders to amend the Rights Agreement to enable
the Company to enter into the Ensco Merger Agreement and consummate the transactions contemplated
thereby without causing Parent or any of its subsidiaries to become an “Acquiring Person” (as
defined in the Rights Agreement).

          NOW, THEREFORE, in consideration of the premises and mutual agreements set forth herein and in
the Rights Agreement, the parties hereby agree as follows:

          Section 1. Definitions. Capitalized terms used but not defined herein shall have the meaning
assigned to such terms in the Rights Agreement.

          Section 2. Amendments to Rights Agreement. The Rights Agreement is hereby amended as set forth
in this Section 2.

     (a) The definition of “Acquiring Person” in Section 1 of the Rights Agreement is
amended to add the following sentence at the end thereof:

“Notwithstanding anything in this Agreement to the contrary, none of Parent,
Merger Sub, Delaware Sub or any Affiliate or Associate of any of them shall
be deemed to be an Acquiring Person, either individually or collectively,
solely as a result of any or all of the Merger Events.”

 

 

     (b) The definition of “Distribution Date” in Section 1 of the Rights Agreement is
amended to add the following sentence at the end thereof:

“Notwithstanding anything in this Agreement to the contrary, a Distribution
Date shall not be deemed to have occurred solely as the result of any or all
of the Merger Events.”

     (c) The definition of “Expiration Date” in Section 1 of the Rights Agreement is amended
to replace the words “and (iv)” with “, (iv)” and to add at the end thereof the words “and
(v) the time immediately prior to the Effective Time (as such term is defined in the Ensco
Merger Agreement) of the Merger (as such term is defined in the Ensco Merger Agreement) but
only if the Effective Time shall occur.”

     (d) The definition of “Final Expiration Date” in Section 1 of the Rights Agreement is
amended and restated to read in its entirety as follows:

“ ‘Final Expiration Date’ shall mean the later to occur of (i) the
termination of the Ensco Merger Agreement and (ii) the close of business on
September 30, 2011.”

     (e) The definition of “Flip-In Event” in Section 1 of the Rights Agreement is amended
to add the following sentence at the end thereof:

“Notwithstanding anything in this Agreement to the contrary, none of the
Merger Events shall be a Flip-In Event or have the effect specified in
Section 11(a)(ii).”

     (f) The definition of “Flip-Over Event” in Section 1 of the Rights Agreement is amended
to add the following sentence at the end thereof:

“Notwithstanding anything in this Agreement to the contrary, none of the
Merger Events shall be a Flip-Over Event or have the effect specified in
Section 13.”

     (g) The definition of “Stock Acquisition Date” in Section 1 of the Rights Agreement is
amended to add the following sentence at the end thereof:

“Notwithstanding anything in this Agreement to the contrary, a Stock
Acquisition Date shall not be deemed to have occurred solely as the result
of any or all of the Merger Events.”

     (h) The following definitions shall be added to Section 1 of the Rights Agreement:

“Delaware Sub” shall mean ENSCO International Incorporated, a Delaware
corporation and an indirect, wholly owned subsidiary of Parent.

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“Ensco Merger Agreement” shall mean the Agreement and Plan of Merger, dated
as of February 6, 2011, by and among Parent, Merger Sub, Delaware Sub and
the Company, as it may be amended or supplemented from time to time.

“Merger Events” shall mean (i) the announcement of the Merger (as such term
is defined in the Ensco Merger Agreement), (ii) the execution, delivery and
performance of the Ensco Merger Agreement and the acquisition of, or right
or obligation to acquire, beneficial ownership of Common Stock as a result
of the execution of the Ensco Merger Agreement, (iii) the conversion of
Common Stock into the right to receive the Merger Consideration (as such
term is defined in the Ensco Merger Agreement) in accordance with Article 2
of the Ensco Merger Agreement and (iv) the consummation of the Merger (as
such term is defined in the Ensco Merger Agreement) and the other
transactions contemplated by the Ensco Merger Agreement.

“Merger Sub” shall mean ENSCO Ventures LLC, a Delaware corporation and an
indirect, wholly owned subsidiary of Parent.

“Parent” shall mean Ensco plc, a public limited company organized under the
laws of England and Wales.

     (i) Section 30 of the Rights Agreement is amended to add the following sentence at the
end thereof:

“Notwithstanding anything in this Agreement to the contrary, nothing in this
Agreement shall be construed to give any registered holder of a Rights
Certificate or any other Person any legal or equitable right, remedy or
claim under this Agreement in connection with any or all of the Merger
Events.”

     (j) Section 11(a)(ii) of the Rights Agreement is amended to add the following sentence
at the end thereof:

“Notwithstanding the foregoing, no provision for adjustment shall be made
pursuant to this Section 11(a)(ii) solely as a result of the occurrence of
any or all of the Merger Events.”

     (k) Section 13(a) of the Rights Agreement is amended to add the following sentence at
the end thereof:

“Notwithstanding the foregoing, no provision for adjustment shall be made
pursuant to this Section 13(a) solely as a result of the occurrence of any
or all of the Merger Events.”

3

 

          Section 3. Miscellaneous.

          (a) The term “Agreement” as used in the Rights Agreement shall be deemed to refer to the
Rights Agreement as amended hereby.

          (b) This Amendment shall be effective as of the date first above written, and, except as set
forth herein, the Rights Agreement shall remain in full force and effect and shall be otherwise
unaffected hereby. Without limiting the foregoing, the Rights Agent shall not be subject to, nor
required to interpret or comply with, or determine if any Person has complied with, the Ensco
Merger Agreement, even though reference thereto may be made in this Amendment and the Rights
Agreement.

          (c) This Amendment 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.

          (d) If for any reason the Ensco Merger Agreement is terminated and the Merger is abandoned,
then this Amendment shall be of no further force and effect and the Agreement shall remain exactly
the same as it existed immediately prior to execution of this Amendment.

          (e) This Amendment shall be deemed to be a contract made under the laws of the State of
Delaware and for all purposes shall be governed by and construed in accordance with the laws of
such State applicable to contracts to be made and performed entirely within such State.

          (f) Except to the extent specifically amended hereby, the provisions of the Rights Agreement
shall remain unmodified, and the Rights Agreement as amended hereby is confirmed as being in full
force and effect.

          (g) The undersigned officer of the Company, as an appropriate officer of the Company, (i)
hereby certifies on behalf of the Company that, pursuant to Section 27 of the Rights Agreement,
this Amendment is in compliance with the terms of Section 27 of the Rights Agreement; and (ii)
hereby directs the Rights Agent to execute and deliver this Amendment.

          (h) If any term of this Amendment is held by a court of competent jurisdiction or other
authority to be invalid, void or unenforceable, the remainder of the terms of this Amendment shall
remain in full force and effect and shall in no way be affected, impaired or invalidated.

4

 

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

	 	 	 	 	 
	 	PRIDE INTERNATIONAL, INC.

 	 
	 	By:  	/s/ Brady K. Long
 	 
	 	 	Brady K. Long 	 
	 	 	Vice President, General Counsel and Secretary 	 
	 
	 	AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC,

as Rights Agent

 	 
	 	By:  	 /s/ Karishma Kadian	 
	 	 	Name:  	 Karishma Kadian	 
	 	 	Title:  	 Counsel	 
	 

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