Document:

Rights Agreement

 Exhibit 4.2 
  
 RENTECH, INC. 
  
 and 
  
 ComputerShare Trust Company, Inc. 
  
 Rights Agent 
  
 RIGHTS AGREEMENT

  
 Effective as of January 18, 2005 

 TABLE OF CONTENTS 
  

					
	 Section

	  	 	  	Page

	 Section 1.
	  	 Certain Definitions
	  	1
	 Section 2.
	  	 Appointment of Rights Agent
	  	4
	 Section 3.
	  	 Issuance of Right Certificates
	  	4
	 Section 4.
	  	 Form of Right Certificates
	  	5
	 Section 5.
	  	 Countersignature and Registration
	  	6
	 Section 6.
	  	 Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates
	  	6
	 Section 7.
	  	 Exercise of Rights; Purchase Price; Expiration Date of Rights
	  	7
	 Section 8.
	  	 Cancellation and Destruction of Right Certificates
	  	8
	 Section 9.
	  	 Availability of Preference Shares
	  	8
	 Section 10.
	  	 Preference Shares Record Date
	  	9
	 Section 11.
	  	 Adjustment of Purchase Price, Number of Shares or Number of Rights
	  	9
	 Section 12.
	  	 Certificate of Adjusted Purchase Price or Number of Shares
	  	16
	 Section 13.
	  	 Consolidation, Merger or Sale or Transfer of Assets or Earning Power
	  	16
	 Section 14.
	  	 Fractional Rights and Fractional Shares
	  	17
	 Section 15.
	  	 Rights of Action
	  	17
	 Section 16.
	  	 Agreement of Right Holders
	  	18
	 Section 17.
	  	 Right Certificate Holder Not Deemed a Stockholder
	  	18
	 Section 18.
	  	 Concerning the Rights Agent
	  	19
	 Section 19.
	  	 Merger or Consolidation or Change of Name of Rights Agent
	  	19
	 Section 20.
	  	 Duties of Rights Agent
	  	20
	 Section 21.
	  	 Change of Rights Agent
	  	21
	 Section 22.
	  	 Issuance of New Right Certificates
	  	22
	 Section 23.
	  	 Redemption
	  	22
	 Section 24.
	  	 Exchange
	  	23
	 Section 25.
	  	 Notice of Certain Events
	  	24
	 Section 26.
	  	 Notices
	  	25
	 Section 27.
	  	 Supplements and Amendments
	  	26
	 Section 28.
	  	 Successors
	  	26
	 Section 29.
	  	 Benefits of this Agreement
	  	26
	 Section 30.
	  	 Severability
	  	26
	 Section 31.
	  	 Governing Law
	  	26
	 Section 32.
	  	 Counterparts
	  	26
	 Section 34.
	  	 Descriptive Headings
	  	26

 RIGHTS AGREEMENT 
  

This amended Rights Agreement, is effective as of January 18, 2005 (the “Agreement”), between Rentech, Inc., a Colorado corporation (the
“Company”), and ComputerShare Trust Company, Inc. and supersedes and replaces in its entirety the Rights Agreement dated November 10, 1998 between the Company and American Securities Transfer and Trust, Inc., (now known as ComputerShare
Trust Company, Inc.) as Rights Agent hereunder (the “Rights Agent”). 
  
 W I T N E S S E T H: 
  
 WHEREAS,
on October 28, 1998, the Board of Directors of the Company authorized and declared a dividend, payable as of December 1, 1998, of one preference share purchase right (a “Right”) for each Common Share (as hereinafter defined) of the Company
outstanding on November 10, 1998 (the “Record Date”), each Right representing the right to purchase one one-hundredth of a Preference Share (as hereinafter defined), upon the terms and subject to the conditions herein set forth, and has
further authorized and directed the issuance of one Right with respect to each Common Share that shall become outstanding between the Record Date and the earliest of the Distribution Date, the Redemption Date or the Final Expiration Date (as such
terms are hereinafter defined). 
  
 WHEREAS, on December 27, 2004
the Board of Directors of the Company amended the Rights Agreement to modify the Right described in the Rights Agreement so that, on and after January 18, 2005, each Right shall be a Right representing the right to purchase one three-hundredth of a
Preference share, rather than one-one-hundredth of a Preference Share. 
  
 WHEREAS, this amended Rights Agreement is entered into by the Company and the Rights Agent to modify each Right as previously described and to identify ComputerShare Trust Company, Inc. as the Rights Agent. 
  
 NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein set forth, the parties hereby enter into this amended Rights Agreement to supersede in its entirety the Rights Agreement dated as of November 10, 1998, and the parties further 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 (as such term is hereinafter defined) who or which, together with all Affiliates and Associates (as such terms are hereinafter defined) of such Person, shall be the Beneficial Owner (as such
term is hereinafter defined) of 15% or more of the Common Shares of the Company then outstanding, but shall not include the Company, any Subsidiary (as such term is hereinafter defined) of the Company, any employee benefit plan of the Company or any
Subsidiary of the Company, or any trust or other entity holding Common Shares for or pursuant to the terms of any such plan. Notwithstanding the foregoing, no Person shall become an “Acquiring Person” for any purpose of this Agreement: (i)
as the result of an acquisition of Common Shares by the Company which, by reducing the number of shares 

  

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outstanding, increases the proportionate number of shares beneficially owned by such Person to 15% or more of the Common Shares of the Company then
outstanding; provided, however, that if a Person shall become the Beneficial Owner of 15% or more of the Common Shares of the Company then outstanding by reason of share purchases by the Company and shall, after such share purchases by the Company,
become the Beneficial Owner of any additional Common Shares of the Company, then such Person shall be deemed to be an “Acquiring Person”; (ii) as the result of one or more acquisitions of Beneficial Ownership of Common Shares of the
Company from the Company or any Subsidiary of the Company, which, together with Common Shares of the Company then Beneficially Owned by the Person, aggregate 15% or more of the Common Shares of the Company then outstanding, unless and until
thereafter the Person acquires Beneficial Ownership of any additional Common Shares from anyone other than the Company or any Subsidiary of the Company and the Person’s aggregate Beneficial Ownership is 15% or more of the Common Shares of the
Company then outstanding, in which event the Person shall become an “Acquiring Person”; (iii) if the Board of Directors of the Company determines in good faith that a Person who would otherwise be an “Acquiring Person,” as
defined pursuant to the foregoing provisions of this paragraph (a), has become such inadvertently, and such Person divests as promptly as practicable a sufficient number of Common Shares so that such Person would no longer be an “Acquiring
Person,” as defined pursuant to the foregoing provisions of this paragraph (a). 
  
 (b) “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), as in effect on the date of this Agreement. 
  
 (c) “Beneficial Owner.” A Person shall be deemed the “Beneficial Owner” of and shall be deemed to “beneficially own” any securities: 
  
 (i) which such Person or any of such Person’s
Affiliates or Associates beneficially owns, directly or indirectly; 
  
 (ii) which such Person or any of such Person’s Affiliates or Associates has (A) the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement,
arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities), or upon the exercise of conversion rights, exchange rights, rights
(other than the above-defined Rights), warrants or options, or otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, securities tendered pursuant to a tender or exchange offer made by or on
behalf of such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for purchase or exchange; or (B) the right to vote pursuant to any agreement, arrangement or understanding, provided, that a
Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security if the agreement, arrangement or understanding to vote such security (1) arises solely from a revocable proxy or consent given to such Person in response to a
public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations promulgated under the Exchange Act and (2) is not also then reportable on Schedule 13D under the Exchange Act (or any comparable or
successor report); or 
  

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 (iii) which are beneficially owned, directly or indirectly, by any other Person with
which such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public
offering of securities) for the purpose of acquiring, holding, voting (except to the extent contemplated by the provisions of Section 1(c)(ii)(B)) or disposing of any securities of the Company. 
  
 Notwithstanding anything in this definition of Beneficial Ownership to the
contrary, the phrase “then outstanding,” when used with reference to a Person’s Beneficial Ownership of securities of the Company, shall mean the number of such securities then issued and outstanding together with the number of such
securities not then actually issued and outstanding which such Person would be deemed to beneficially own hereunder. 
  
 (d) “Business Day” shall mean any day other than a Saturday, a Sunday, or a day on which banking institutions in the State of the principal
office of the Rights Agent are authorized or obligated by law or executive order to close. 
  
 (e) “Close of Business” on any given date shall mean 5:00 P.M., local time in the State of Colorado where the principal Colorado office of the Rights Agent is located, on such date; provided, however, that
if such date is not a Business Day it shall mean 5:00 P.M., local time in the State of Colorado, where the principal Colorado office of the Rights Agent is located, on the next succeeding Business Day. 
  
 (f) “Common Shares” when used with reference to the Company shall
mean the shares of common stock, par value $.01 per share, of the Company. “Common Shares” when used with reference to any Person other than the Company shall mean the capital stock (or equity interest) with the greatest voting power of
such other Person or, if such other Person is a Subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned Person. 
  
 (g) “Distribution Date” shall have the meaning set forth in Section 3 hereof. 
  
 (h) “Final Expiration Date” shall have the meaning set forth in Section 7 hereof. 
  
 (i) “Person” shall mean any individual, firm, corporation, general
or limited partnership, limited liability company or other entity, and shall include any successor (by merger or otherwise) of such entity. 
  
 (j) “Preference Shares” shall mean shares of Series 1998-C Participating Cumulative Preference Stock, $10 par value per share, of the Company,
having the rights and preferences set forth in Article 19 of the Company’s Restated Articles of Incorporation dated November 30, 2004, as they may be amended in the future. 
  

 3 

 (k) “Redemption Date” shall have the meaning set forth in Section 7 hereof. 
  
 (1) “Share Acquisition Date” shall mean the first date of public
announcement by the Company or an Acquiring Person that an Acquiring Person has become such. 
  
 (m) “Subsidiary” of any Person shall mean any corporation or other entity of which a majority of the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by such
Person. 
  
 Section 2. Appointment of Rights Agent. The
Company hereby appoints the Rights Agent to act as 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 Shares) 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, in which event it shall notify the Rights Agent of the name and
address of any such Co-Rights Agent appointed by it. 
  
 Section 3. Issuance of Right Certificates. 
  
 (a) Until the earlier of (i) the tenth day after the Share Acquisition Date or (ii) the tenth business day (or such later date as may be determined by action of the Board of Directors of the Company prior to such time as any Person becomes
an Acquiring Person) after the date of the commencement 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 trust or other entity holding Common
Shares for or pursuant to the terms of any such plan) of, or of the first public announcement of the intention of 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 trust or other entity holding Common Shares for or pursuant to the terms of any such plan) to commence, a tender or exchange offer the consummation of which would Result in any Person becoming the Beneficial Owner of Common Shares
aggregating 15% or more of the then outstanding Common Shares, irrespective of whether any shares are actually purchased pursuant to any such offer (including any such date which is after the date of this Agreement and prior to the issuance of the
Rights; the earlier of such dates being herein referred to as the “Distribution Date”), (x) the Rights will be evidenced (subject to the provisions of Section 3(b) hereof) by the certificates for Common Shares registered in the
names of the holders thereof (which certificates shall also be deemed to be Right Certificates) and not by separate Right Certificates, and (y) the right to receive Right Certificates will be transferable only in connection with the transfer of
Common Shares. As soon as practicable after the Distribution Date, the Company will prepare and execute, the Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if requested, send) by first-class,
postage-prepaid mail, to each record holder of Common Shares as of the close of business on the Distribution Date, at the address of such holder shown on the records of the Company, a Right Certificate (a “Right Certificate”),
evidencing one Right for each Common Share so held. As of and after the Distribution Date, the Rights will be evidenced solely by such Right Certificates. 
  

 4 

 (b) With respect to certificates for Common Shares outstanding as of the Record Date, until the
Distribution Date, the Rights will be evidenced by such certificates registered in the names of the holders. Until the Distribution Date (or the earlier of the Redemption Date or the Final Expiration Date), the surrender for transfer of any
certificate for Common Shares outstanding on the Record Date, with or without a copy of a Summary of Rights, shall also constitute the transfer of the Rights associated with the Common Shares represented thereby. 
  
 (c) Certificates for Common Shares which become outstanding (including,
without limitation, reacquired Common Shares referred to in the last sentence of this paragraph (c)) after the Record Date but prior to the earliest of the Distribution Date, the Redemption Date or the Final Expiration Date shall have impressed on,
printed on, written on or otherwise affixed to them the following legend: 
  
 This certificate also evidences and entitles the holder hereof to certain Rights as set forth in the Rights Agreement between Rentech, Inc. (the “Company”) and ComputerShare Trust Company, Inc. (the
“Rights Agent”), dated as of January 18, 2005 (as amended 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. 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 Company 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 issued to, or held by, any Person who is, was or
becomes an Acquiring Person or any Affiliate or Associate thereof (as such terms are defined in the Rights Agreement), whether currently held by or on behalf of such Person or by any subsequent holder, may become null and void. 
  
 With respect to such certificates containing the foregoing legend, until the Distribution
Date, the Rights associated with the Common Shares represented by such certificates shall be evidenced by such certificates alone, and the surrender for transfer of any such certificate shall also constitute the transfer of the Rights associated
with the Common Shares represented thereby. In the event that the Company purchases or acquires any Common Shares after the Record Date but prior to the Distribution Date, any Rights associated with such Common Shares shall be deemed cancelled and
retired so that the Company shall not be entitled to exercise any Rights associated with the Common Shares which are no longer outstanding. 
  
 Section 4. Form of Right Certificates. The Right Certificates (and the forms of election to purchase Preference Shares and of assignment to be
printed on the reverse thereof) may have such marks of identification or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Agreement,
or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange on which the Rights may from time to time be listed, or to conform to usage. Subject to
the provisions of Section 22 hereof, the Right Certificates shall entitle the holders thereof to 

  

 5 

 
purchase such number of one three-hundredths of a Preference Share as shall be set forth therein (the “Purchase Price”), but the number of such one
three-hundredths of a Preference Share or other securities purchasable and the Purchase Price shall be subject to adjustment as provided herein. 
  
 Section 5. Countersignature and Registration. 
  
 (a) The Right Certificates shall be executed on behalf of the Company by its President or Vice President, either manually or by facsimile signature, shall
have affixed thereto the Company’s seal or a facsimile thereof, and shall be attested by the Secretary or an Assistant Secretary of the Company, either manually or by facsimile signature. The Right 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 Right Certificates shall cease to be such officer of the
Company before countersignature by the Rights Agent and issuance and delivery by the Company, such Right Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as
though the person who signed such Right Certificates had not ceased to be such officer of the Company; and any Right Certificate may be signed on behalf of the Company by any person who, at the actual date of the execution of such Right Certificate,
shall be a proper officer of the Company to sign such Right Certificate, although at the date of the execution of this Rights Agreement any such person was not such an officer. 
  
 (b) Following the Distribution Date, the Rights Agent will keep or cause to be kept, at its principal office, books for
registration and transfer of the Right Certificates issued hereunder. Such books shall show the names and addresses of the respective holders of the Right Certificates, the number of Rights evidenced on its face by each of the Right Certificates,
the date of each of the Right Certificates and the certificate number for each of the Right Certificates. 
  
 Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates. 

 
 (a) Subject to the provisions of 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 earlier of the Redemption Date or the Final Expiration Date, any Right Certificate or Right Certificates (other than Right Certificates representing Rights
that have become void pursuant to Section 11(a)(ii) hereof or that have been exchanged pursuant to Section 24 hereof) may be transferred, split up, combined or exchanged for another Right Certificate or Right Certificates, entitling the registered
holder to purchase a like number of one three-hundredths of a Preference Share as the Right Certificate or Right Certificates surrendered then entitled such holder to purchase. Any registered holder desiring to transfer, split up, combine or
exchange any Right Certificate or Right Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender the Right Certificate or Right Certificates to be transferred, split up, combined or exchanged at the
principal office of the Rights Agent. Thereupon the Rights Agent shall countersign and deliver to the person entitled thereto a Right Certificate or Right Certificates, as the case may be, as so 

  

 6 

 
requested. The Company may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer,
split up, combination or exchange of Right Certificates. 
  
 (b)
Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Right Certificate, and, in case of loss, theft or destruction, of indemnity or security reasonably
satisfactory to them, and, at the Company’s request, reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Right Certificate if mutilated,
the Company will execute and deliver a new Right Certificate of like tenor to the Rights Agent for countersignature and delivery to the registered holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated. 
  
 Section 7. Exercise of Rights; Purchase Price; Expiration Date of
Rights. 
  
 (a) Subject to Section 26 of this Agreement, the
registered holder of any Right Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein) in whole or in part at any time after the Distribution Date upon surrender of the Right Certificate, with the form of election
to purchase on the reverse side thereof duly executed, to the Rights Agent at the principal office of the Rights Agent, together with payment of the Purchase Price for each one three-hundredth of a Preference Share as to which the Rights are
exercised, at or prior to the earliest of (i) the close of business on December 1, 2008 (the “Final Expiration Date”), (ii) the time at which the Rights are redeemed as provided in Section 23 hereof (the “Redemption
Date”), or (iii) the time at which such Rights are exchanged as provided in Section 24 hereof. 
  
 (b) The Purchase Price for each one three-hundredth of a Preference Share purchasable pursuant to the exercise of a Right shall initially be $12.00, and
shall be subject to adjustment from time to time as provided in Section 11 or 13 hereof and shall be payable in lawful money of the United States of America in accordance with paragraph (c) below. 
  
 (c) Upon receipt of a Right Certificate representing exercisable Rights, with
the form of election to purchase duly executed, accompanied by payment of the Purchase Price for the shares to be purchased and an amount equal to any applicable transfer tax required to be paid by the holder of such Right Certificate in accordance
with Section 9 hereof, the Rights Agent shall thereupon promptly (i) requisition from any transfer agent of the Preference Shares certificates for the number of Preference Shares to be purchased and the Company hereby irrevocably authorizes its
transfer agent to comply with all such requests, (ii) as provided in Section 14(b), at the election of the Company, cause depositary receipts in lieu of fractional shares to be issued, (iii) when appropriate, requisition from the Company the amount
of cash to be paid in lieu of issuance of fractional shares in accordance with Section 14 hereof, (iv) after receipt of such certificates or depositary receipts, cause the same to be delivered to or upon the order of the registered holder of such
Right Certificate, registered in such name or names as may be designated by such holder and (v) when appropriate, after receipt, deliver such cash to or upon the order of the registered holder of such Right Certificate. The payment of the Purchase
Price may be made (x) in cash or by certified bank check or bank draft payable to the order of the 

  

 7 

 
Company, or (y) by delivery of a certificate or certificates (with appropriate stock powers executed in blank attached thereto) evidencing a number of Common
Shares of the Company equal to the then Purchase Price divided by the current market price (as determined pursuant to Section 11(d) hereof) per Common Share on the date of such exercise. In the event that the Company is obligated to issue other
securities (including Common Shares) of the Company pursuant to Section 11(a) hereof, the Company will make all arrangements necessary so that such other securities are available for distribution by the Rights Agent, if and when appropriate.

  
 (d) In case the registered holder of any Right Certificate
shall exercise less than all the Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent to the Rights remaining unexercised shall be issued by the Rights Agent to the registered holder of such Right Certificate or to such
holder’s duly authorized assigns, subject to the provisions of Section 14 hereof. 
  
 Section 8. Cancellation and Destruction of Right Certificates. All Right Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company or
to any of its agents, be delivered to the Rights Agent for cancellation or in cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by it, and no Right Certificates shall be issued in lieu thereof except as expressly permitted
by any of the provisions of this Rights Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Right Certificate purchased or acquired by the Company
otherwise than upon the exercise thereof. The Rights Agent shall deliver all cancelled Right Certificates to the Company, or shall, at the written request of the Company, destroy such cancelled Right Certificates, and in such case shall deliver a
certificate of destruction thereof to the Company. 
  
 Section
9. Availability of Preference Shares. 
  
 (a) The Company
covenants and agrees that it will cause to be reserved and kept available out of its authorized and unissued Preference Shares or any Preference Shares held in its treasury, the number of Preference Shares that will be sufficient to permit the
exercise in full of all outstanding Rights in accordance with Section 7. The Company covenants and agrees that it will take all such action as may be necessary to ensure that all Preference Shares delivered upon exercise of Rights shall, at the time
of delivery of the certificates for such Preference Shares (subject to payment of the Purchase Price), be duly and validly authorized and issued and fully paid and nonassessable shares. 
  
 (b) The Company further covenants and agrees that it will pay when due and payable any and all federal and state transfer
taxes and charges that may be payable with respect to the issuance or delivery of the Right Certificates or of any Preference Shares upon the exercise of Rights. The Company shall not, however, be required to pay any transfer tax that may be payable
in respect of any transfer or delivery of Right Certificates to a person other than, or the issuance or delivery of certificates or depositary receipts for the Preference Shares in a name other than that of, the registered holder of the Right
Certificate evidencing Rights surrendered for exercise or to issue or to deliver any certificates or depositary receipts for Preference Shares upon the exercise of any Rights until any such tax shall have been paid (any such tax being payable by the
holder of such Right Certificate at the time of surrender) or until it has been established to the Company’s reasonable satisfaction that no such tax is due. 
  

 8 

 Section 10. Preference Shares Record Date. Each person in whose name any certificate for
Preference Shares is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of the Preference Shares represented thereby on, and such certificate shall be dated, the date upon which the Right
Certificate evidencing such Rights was duly surrendered and payment of the Purchase Price (and any applicable transfer taxes) was made; provided, however, that if the date of such surrender and payment is a date upon which the Preference Shares
transfer books of the Company are closed, such person shall be deemed to have become the record holder of such shares on, and such certificate shall be dated, the next succeeding Business Day on which the Preference Shares transfer books of the
Company are open. Prior to the exercise of the Rights evidenced thereby, the holder of a Right Certificate shall not be entitled to any rights of a holder of Preference 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 of Shares or Number of
Rights. 
  
 (a) The Purchase Price, the number and kind of
Preference Shares or other 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. 
  
 (i) In the event the Company shall at any time after the date of this Agreement (A) declare a dividend on
the Preference Shares payable in Preference Shares, (B) subdivide the outstanding Preference Shares, (C) combine the outstanding Preference Shares into a smaller number of Preference Shares or (D) issue any shares of its capital stock in a
reclassification of the Preference Shares (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving corporation), except as otherwise provided in this Section 11(a), the
Purchase Price in effect at the time of the record date for such dividend or of the effective date of such subdivision, combination or reclassification, and the number and kind of shares of capital stock issuable on such date, shall be
proportionately adjusted so that the holder of any Right exercised after such time shall be entitled to receive the aggregate number and kind of shares of capital stock which, if such Right had been exercised immediately prior to such date and at a
time when the Preference Shares transfer books of the Company were open, such holder would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification; provided, however, that
in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of one Right. If an event occurs which would require an
adjustment under both this Section 11(a)(i) and Section 11(a)(ii) which follows, 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) which
follows. 
  

 9 

 (ii) Subject to Section 24 of this Agreement, in the event any Person, alone or together
with its Affiliates and Associates, becomes an Acquiring Person, each holder of a Right shall thereafter have a right to receive, upon exercise thereof at a price equal to the then current Purchase Price multiplied by the number of one
three-hundredths of a Preference Share for which the Right is then exercisable, in accordance with the terms of this Agreement and in lieu of Preference Shares, and subject to Section 26 of this Agreement, such number of Common Shares of the Company
as shall equal the result obtained by (x) multiplying the then current Purchase Price by the number of one three-hundredths of a Preference Share for which a Right is then exercisable and dividing that product by (y) 50% of the then current per
share market price of the Company’s Common Shares (determined pursuant to Section 11(d) hereof) on the date of the occurrence of such event. If any Person shall become an Acquiring Person at a time when the Rights are then outstanding, the
Company shall not take any action which would eliminate or diminish the benefits intended to be afforded by the Rights. From and after the time at which any Person, alone or together with its Affiliates and Associates, becomes an Acquiring Person
when Rights are not outstanding, any Rights that are or were acquired or beneficially owned by any such Acquiring Person (or any Associate or Affiliate of such Acquiring Person) shall be void and any holder of such Rights shall thereafter have no
right to exercise such Rights under any provision of this Agreement. No Right Certificate shall be issued pursuant to Section 3 that represents Rights beneficially owned by an Acquiring Person whose Rights would be void pursuant to the preceding
sentence or any Associate or Affiliate thereof; no Right Certificate shall be issued at any time upon the transfer of any Rights to an Acquiring Person whose Rights would be void pursuant to the preceding sentence or any Associate or Affiliate
thereof or to any nominee of such Acquiring Person, Associate or Affiliate; and any Right Certificate delivered to the Rights Agent for transfer to an Acquiring Person whose Rights would be void pursuant to the preceding sentence shall be cancelled.

  
 (iii) If the number of shares of Common Stock
that are authorized by the Company’s Amended and Restated Articles of Incorporation but not outstanding or reserved for issuance for purposes other than upon exercise of the Rights are not sufficient to permit the exercise in full of the Rights
in accordance with Section 11(a)(ii) hereof, the Company shall (A) determine an amount obtained by subtracting the Purchase Price from the aggregate value (the “Current Value”) of the shares of Common Stock that would otherwise be
issuable upon the exercise of a Right in accordance with Section 11(a)(ii) hereof (the amount derived from such subtraction being referred to herein as the “Excess Amount”) and (B) with respect to each Right, substitute for such
shares of Common Stock, upon payment of the applicable Purchase Price, (1) cash, (2) an amount reflecting any reduction in the Purchase Price, (3) Common Stock (to the extent available) or other equity securities of the Company, (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 a majority of
the Independent Directors (as defined hereinafter) and the Board of Directors of the Company, based upon the advice of a nationally recognized investment banking firm selected by the Board of Directors of the Company; provided, however, that if the
Company shall not have made adequate 

  

 10 

 
provision to deliver value pursuant to clause (B) above within 30 days following the date upon which any Person, alone or together with its Affiliates and
Associates, becomes an Acquiring Person (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, securities and/or assets that have an aggregate value equal to the Excess Amount, where such aggregate value has been determined by a majority of the Independent Directors and
the Board of Directors of the Company based upon the advice of a nationally recognized investment banking firm selected by the Board of Directors of the Company; provided, further, however, that if the Independent Directors shall determine in good
faith that it is likely that sufficient additional Common Shares could be authorized for issuance upon exercise of the Rights in full, the 30-day period referred to above may, in the sole discretion of the Independent Directors, be extended to the
extent necessary, but not more than 90 days following the Section 11(a)(ii) Trigger Date, in order for the Company to seek stockholder approval for the authorization of such additional shares. To the extent that action is to be taken pursuant to the
first sentence of this Section 11(a)(iii), the Company (1) shall provide, subject to the exceptions specified in Section 11(a)(ii) hereof, that such action shall to the maximum extent possible apply uniformly to all outstanding Rights that shall not
have become null and void, subject to Section 26 of this Agreement, and (2) may suspend the exercisability of the Rights until the 31st day following the Section 11(a)(ii) Trigger Date in order to decide the appropriate form of distribution to be
made pursuant to such first sentence and to determine the value thereof. In the event of any such suspension, the Company shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a
public announcement at such time as the suspension is no longer in effect. For purposes of this Section 11(a)(iii), the value of the Common Stock shall be the current per share market price per share of the Common Stock (as determined pursuant to
Section 11(d) hereof) on the Section 11(a)(ii) Trigger Date. For purposes of this paragraph, “Independent Director” shall mean any member of the Board of Directors of the Company, while such person is a member of the Board, who is
not an Acquiring Person, or an Affiliate or Associate of an Acquiring Person, or a representative or nominee of an Acquiring Person or of any such Affiliate or Associate, and was a member of the Board prior to the time that any Person becomes an
Acquiring Person, and any successor of an Independent Director, while such successor is a member of the Board, who is not an Acquiring Person or an Affiliate or Associate of an Acquiring Person, or a representative or nominee of an Acquiring Person
or of any such Affiliate or Associate, and is recommended or elected to succeed the Independent Director by a majority of the Independent Directors. 
  
 (b) In case the Company shall fix a record date for the issuance of rights, options or warrants to all holders of Preference Shares entitling them (for a
period expiring within 45 calendar days after such record date) to subscribe for or purchase Preference Shares (or shares having the same rights, privileges and preferences as the Preference Shares (“equivalent preference shares”))
or securities convertible into Preference Shares or equivalent preference shares at a price per Preference Share or equivalent preference share (or having a conversion price per share, if a security convertible into Preference Shares or equivalent
preference shares) 

  

 11 

 
less than the then current per share market price of the Preference Shares (as defined in Section 11(d)) 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 Preference Shares outstanding on such record date plus
the number of Preference Shares that the aggregate offering price of the total number of Preference Shares and/or equivalent preference shares so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be
offered) would purchase at such current market price and the denominator of which shall be the number of Preference Shares outstanding on such record date plus the number of additional Preference Shares and/or equivalent preference shares to be
offered for subscription or purchase (or into which the convertible securities so to be offered are initially convertible); provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the
aggregate par value of the shares of capital stock of the Company issuable upon exercise of one Right. In case such subscription price may be paid in a consideration part or all of which shall be in a form other than cash, the value of such
consideration shall be as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent. Preference Shares owned by or held for the account of the Company shall
not be deemed outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is fixed, and in the event that such rights, options or warrants are not so issued, the Purchase Price shall be
adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed. 
  
 (c) In case the Company shall fix a record date for the making of a distribution to all holders of the Preference Shares (including any such distribution
made in connection with a consolidation or merger in which the Company is the continuing or surviving corporation) of evidences of indebtedness or assets (other than a regularly scheduled cash dividend or a dividend payable in Preference Shares) or
subscription rights or warrants (excluding those referred to in Section 11(b) hereof), the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by
a fraction, the numerator of which shall be the then current per share market price of the Preference Shares on such record date, less the fair market value (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) of the portion of the assets or evidences of indebtedness so to be distributed or of such subscription rights or warrants applicable to one Preference Share and the denominator of which
shall be such current per share market price of the Preference Shares; provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the
Company to be issued upon exercise of one Right. Such adjustments shall be made successively whenever such a record date is fixed; and in the event that such distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase
Price which would then be in effect if such record date had not been fixed. 
  
 (d)(i) For the purpose of any computation hereunder, the “current per share market price” of any security (a “Security” for the purpose of this Section 11(d)(i)) on any particular date shall
be deemed to be the average of the daily closing prices per share of such Security for the 30 consecutive Trading Days (as such term is hereinafter defined) immediately prior to such 

  

 12 

 
date; provided, however, that in the event that the current per share market price of the Security is determined during a period following the announcement
by the issuer of such Security of (A) a dividend or distribution on such Security payable in shares of such Security or securities convertible into such shares, or (B) any subdivision, combination or reclassification of such Security and prior to
the expiration of 30 Trading Days after the dividend date for such dividend or distribution, or the record date for such subdivision, combination or reclassification, then, and in each such case, the current per share market price shall be
appropriately adjusted to reflect the current market price per share equivalent of such Security. The closing price for each day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing
bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange or, if the Security is not listed or
admitted to trading on the New York Stock Exchange, as reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the Security is listed or admitted to
trading or, if the Security is not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by the
National Association of Securities Dealers, Inc. Automated Quotations System (“NASDAQ”) or such other system then in use, or, if on any such date the Security is 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 Security selected by the Board of Directors of the Company, or, if on any such date no such market maker is making a market in the Security, the fair value of the
Security on such date as determined in good faith by the Board of Directors of the Company. The term “Trading Day” shall mean a day on which the principal national securities exchange on which the Security is listed or admitted to
trading is open for the transaction of business or, if the Security is not listed or admitted to trading on any national securities exchange, a Business Day. 
  
 (ii) For the purpose of any computation hereunder, the “current per share market price” of the Preference Shares shall be determined in
accordance with the method set forth in Section 11(d)(i). If the Preference Shares are not publicly traded, the “current per share market price” of a share of the Preference Shares shall be conclusively deemed to be the current per share
market price of a Common Share as determined pursuant to Section 11(d)(i) (appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof), multiplied by one hundred. If neither the Common
Shares nor the Preference Shares are publicly held or so listed or traded, “current per share market price” shall mean the fair value per share as determined in good faith by the Board of Directors of the Company, whose determination shall
be described in a statement filed with the Rights Agent. 
  
 (e)
No adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at least 1% in the Purchase Price; provided, however, that any adjustments 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 one one-millionth of a Preference Share or one ten-thousandth of any
other share or security as the case may be. Notwithstanding the first sentence of this Section 11(e), any adjustment required by this Section 11 shall be made no later than the earlier of (i) three years from the date of the transaction which
requires such adjustment or (ii) the date of the expiration of the right to exercise any Rights. 
  

 13 

 (f) If as a result of an adjustment made pursuant to Section 11(a) hereof, the holder of any Right
thereafter exercised shall become entitled to receive any shares of capital stock of the Company other than Preference Shares, thereafter the number of such other shares so receivable upon exercise of any Right shall be subject to adjustment from
time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Preference Shares contained in Section 11(a) through (c), inclusive, and the provisions of Sections 7, 9, 10 and 13 with respect to the
Preference Shares shall apply on like terms to any such other shares. 
  
 (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 three-hundredths of a Preference Share
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 three-hundredths of a
Preference Share (calculated to the nearest ones one-millionth of a Preference Share) obtained by (i) multiplying (x) the number of one three-hundredths of a share covered by a Right immediately prior to this adjustment by (y) the Purchase Price in
effect immediately prior to such adjustment of the Purchase Price and (ii) dividing the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price. 
  
 (i) The Company may elect on or after the date of any adjustment of the
Purchase Price to adjust the number of Rights, in substitution for any adjustment in the number of one three-hundredths of a Preference Share purchasable upon the exercise of a Right. Each of the Rights outstanding after such adjustment of the
number of Rights shall be exercisable for the number of one three-hundredths of a Preference Share for which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number of Rights
shall become 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 Right Certificates have been issued, shall be at least 10 days later than the date of the public announcement. If Right Certificates have been issued, upon each
adjustment of the number of Rights pursuant to this Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to holders of record of Right Certificates on such record date Right Certificates evidencing, subject to
Section 14 hereof, the additional Rights to which such holders shall be entitled as a result of such adjustment, or, at the option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Right
Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if 

  

 14 

 
required by the Company, new Right Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment. Right Certificates
so to be distributed shall be issued, executed and countersigned in the manner provided for herein and shall be registered in the names of the holders of record of Right Certificates on the record date specified in the public announcement.

  
 (j) Irrespective of any adjustment or change in the Purchase
Price or the number of one three-hundredths of a Preference Share issuable upon the exercise of the Rights, the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price and the number of one three-hundredths of
a Preference Share which were expressed in the initial Right Certificates issued hereunder. 
  
 (k) Before taking any action that would cause an adjustment reducing the Purchase Price below one three-hundredth of the then par value, if any, of the Preference Shares 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 Preference Shares 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 of the Preference Shares and
other capital stock or securities of the Company, if any, issuable upon such exercise over and above the Preference Shares and other capital stock or securities of the Company, if any, issuable upon such exercise on the basis of the Purchase Price
in effect prior to such adjustment; provided, however, that the Company shall deliver to such holder a due bill or other appropriate instrument evidencing such holder’s right to receive such additional shares upon the occurrence of the event
requiring such adjustment. 
  
 (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 it in its sole discretion shall determine to
be advisable in order that any consolidation or subdivision of the Preference Shares, issuance wholly for cash of any Preference Shares at less than the current market price, issuance wholly for cash of Preference Shares or securities which by their
terms are convertible into or exchangeable for Preference Shares, dividends on Preference Shares payable in Preference Shares or issuance of rights, options or warrants referred to hereinabove, in Section 11(b), hereafter made by the Company to
holders of its Preference Shares shall not be taxable to such stockholders. 
  
 (n) In the event that at any time after the date of this Agreement and prior to the Distribution Date, the Company shall (i) declare or pay any dividend on the Common Shares payable in Common Shares or (ii) effect a
subdivision, combination or consolidation of the Common Shares (by reclassification or otherwise than by payment of dividends in Common Shares) into a greater or lesser number of Common Shares, then in any such case (A) the number of one
three-hundredths of a Preference Share purchasable after such event upon proper exercise of each Right shall be determined by multiplying the number of one three-hundredths of a 

  

 15 

 
Preference Share so purchasable immediately prior to such event by a fraction, the numerator of which is the number of Common Shares outstanding immediately
before such event and the denominator of which is the number of Common Shares outstanding immediately after such event, and (B) each Common Share outstanding immediately after such event shall have issued with respect to it that number of Rights
which each Common Share outstanding immediately prior to such event had issued with respect to it. The adjustments provided for in this Section 11(n) shall be made successively whenever such a dividend is declared or paid or such a subdivision,
combination or consolidation is effected. 
  
 Section 12.
Certificate of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made as provided in Section 11 or 13 hereof, the Company shall promptly (a) prepare a certificate setting forth such adjustment, and a brief statement of the
facts accounting for such adjustment, (b) file with the Rights Agent and with each transfer agent for the Common Shares or the Preference Shares a copy of such certificate and (c) subject to Section 25(c), mail a brief summary thereof to each holder
of a Right Certificate in accordance with Section 25 hereof. Notwithstanding the foregoing sentence, the failure of the Company to give such notice shall not affect the validity of or the force or effect of or the requirement of such adjustment.

  
 Section 13. Consolidation, Merger or Sale or Transfer of
Assets or Earning Power. In the event, directly or indirectly, at any time after a Person has become an Acquiring Person, (x) the Company shall consolidate with, or merge with and into, any other Person, (y) any Person shall consolidate with the
Company, or merge with and into the Company and the Company shall be the continuing or surviving corporation of such merger and, in connection with such merger, all or part of the Common Shares shall be changed into or exchanged for stock or other
securities of any other Person (or the Company) or cash or any other property, or (z) the Company shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer), in one or more transactions, assets or earning
power aggregating 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person other than the Company or one or more of its wholly-owned Subsidiaries, then, and in each such case, proper
provision shall be made so that (i) each holder of a Right (except as otherwise provided herein) shall thereafter have the right to receive, upon the exercise thereof at a price equal to the then current Purchase Price multiplied by the number of
one three-hundredths of a Preference Share for which a Right is then exercisable, in accordance with the terms of this Agreement and in lieu of Preference Shares, such number of Common Shares of such other Person (including the Company as successor
thereto or as the surviving corporation but subject to Section 26 of this Agreement) as shall equal the result obtained by (A) multiplying the then current Purchase Price by the number of one three-hundredths of a Preference Share for which a Right
is then exercisable and dividing that product by (B) 50% of the then current per share market price of the Common Shares of such other Person (determined pursuant to Section 11(d) hereof) on the date of consummation of such consolidation, merger,
sale or transfer; (ii) the issuer of such Common Shares shall thereafter be liable for, and shall assume, by virtue of such consolidation, merger, sale or transfer, all the obligations and duties of the Company pursuant to this Agreement; (iii) the
term “Company” shall thereafter be deemed to refer to such issuer; and (iv) such issuer shall take such steps (including, but not limited to, the reservation of a sufficient number of its Common Shares in accordance with Section 9 hereof)
in connection with such consummation as may be necessary to assure that the provisions hereof shall thereafter be 

  

 16 

 
applicable, as nearly as reasonably may be, in relation to the Common Shares thereafter deliverable upon the exercise of the Rights. The Company shall not
consummate any such consolidation, merger, sale or transfer unless prior thereto the Company and such issuer shall have executed and delivered to the Rights Agent a supplemental agreement so providing. The Company shall not enter into any
transaction of the kind referred to in this Section 13 if at the time of such transaction there are any rights, warrants, instruments or securities outstanding or any agreements or arrangements which, as a result of the consummation of such
transaction, would eliminate or substantially diminish the benefits intended to be afforded by the Rights. The provisions of this Section 13 shall similarly apply to successive mergers or consolidations or sales or other transfers. 
  
 Section 14. Fractional Rights and Fractional Shares. 
  
 (a) The Company shall not be required to issue fractions of Rights or to
distribute Right Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall be paid to the registered holders of the Right Certificates with regard to which such fractional Rights would otherwise be issuable, an
amount in cash equal to the same fraction of the current market value of a whole Right. For the purposes of this Section 14(a), the current market value of a whole Right shall be the closing price of the Rights (as determined pursuant to the second
sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable. 
  
 (b) The Company shall not be required to issue fractions of Preference Shares (other than fractions which are integral multiples of one three-hundredth of
a Preference Share) upon exercise of the Rights or to distribute certificates which evidence fractional Preference Shares (other than fractions which are integral multiples of one three-hundredth of a Preference Share). Fractions of Preference
Shares in integral multiples of one three-hundredth of a Preference Share may, at the election of the Company, be evidenced by depositary receipts, pursuant to an appropriate agreement between the Company and a depositary selected by it; provided,
that such agreement shall provide that the holders of such depositary receipts shall have all the rights, privileges and preferences to which they are entitled as beneficial owners of the Preference Shares represented by such depositary receipts. In
lieu of fractional Preference Shares that are not integral multiples of one three-hundredth of a Preference Share, the Company shall pay to the registered holders of Right Certificates at the time such Rights are exercised as herein provided an
amount in cash equal to the same fraction of the current market value of one Preference Share. For the purposes of this Section 14(b), the current market value of a Preference Share shall be the closing price of a Preference Share (as determined
pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of such exercise. 
  
 (c) The holder of a Right by the acceptance of the Right expressly waives such holder’s right to receive any fractional Rights or any fractional
shares upon exercise of a Right (except as provided in this section). 
  
 Section 15. Rights of Action. All rights of action in respect of this Agreement, excepting the rights of action given to the Rights Agent under Section 18 hereof, are vested in the respective registered holders of the Right
Certificates (and, prior to the Distribution Date, the 

  

 17 

 
registered holders of the Common Shares); and any registered holder of any Right Certificate (or, prior to the Distribution Date, of the Common Shares),
without the consent of the Rights Agent or of the holder of any other Right Certificate (or, prior to the Distribution Date, of the Common Shares), may, in such holder’s own behalf and for such 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, such holder’s right to exercise the Rights evidenced by such Right Certificate in the manner provided in such Right
Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this
Agreement and will be entitled to specific performance of the obligations under, and injunctive relief against actual or threatened violations of the obligations of any Person subject to, this Agreement. 
  
 Section 16. Agreement of Right Holders. Every holder of a Right, by
accepting the same, consents and agrees with the Company and the Rights Agent and with every other holder of a Right that: 
  
 (a) prior to the Distribution Date, the Rights will not be evidenced by a Right Certificate and will be transferable only in connection with the transfer
of the Common Shares; 
  
 (b) after the Distribution Date, the
Right Certificates are transferable only on the registry books of the Rights Agent if surrendered at the principal office of the Rights Agent, duly endorsed or accompanied by a proper instrument of transfer; and 
  
 (c) the Company and the Rights Agent may deem and treat the person in whose
name the Right Certificate (or, prior to the Distribution Date, the associated Common Shares certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the
Right Certificate or the associated Common Shares certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent shall be affected by any notice to the contrary.

  
 Section 17. Right Certificate Holder Not Deemed a
Stockholder. No holder of a Right, as such, shall be entitled to vote, receive dividends or be deemed for any purpose the holder of the Preference Shares 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 Right Certificate be construed to confer upon the holder of any Rights, 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 Right Certificate shall have been exercised in accordance with the provisions hereof. 
  

 18 

 Section 18. Concerning the Rights Agent. 
  
 (a) The Company agrees to pay to the Rights Agent reasonable compensation
for all services rendered by it hereunder and, from time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the administration and execution of this Agreement and the exercise and
performance of its duties hereunder. The Company also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, or expense, incurred without negligence, bad faith or willful misconduct on the part of the Rights
Agent, for anything done or omitted by the Rights Agent in connection with the acceptance and administration of this Agreement, including the costs and expenses of defending against any claim of liability related to this Agreement. The Rights Agent
shall promptly notify the Company of any claim for which it may seek indemnity. The Company shall defend any such claim for which the Rights Agent is entitled to indemnification, and the Rights Agent shall cooperate in the defense. The Rights Agent
may engage separate counsel to review the progress of the defense to any claim and to advise the Rights Agent as to its obligation to cooperate in such defense, and the Company shall pay the reasonable fees and expenses of such counsel. 

 
 (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 Right Certificate or certificate for the Preference Shares or Common Shares or for other securities of the
Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate (including certificates delivered under Section 12), statement, or other paper or document believed by it to be
genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper person or persons, or otherwise upon the advice of counsel as set forth in Section 20 hereof. 
  
 (c) The Rights Agent has no duty to determine when an adjustment under this
Rights Agreement should be made, how it should be made, or what it should be. The Rights Agent makes no representation as to the validity or value of any securities or assets issued upon exercise of the Rights. The Rights Agent shall not be
responsible for the Company’s failure to comply with this Agreement. Each Co-Rights Agent shall have the same protection under this section as the Rights Agent. 
  
 (d) If the Rights are listed on the New York Stock Exchange, the Rights Agent shall maintain all facilities in the area
located south of Chambers Street in the Borough of Manhattan, New York, New York, that are required by Section 6 of the New York Stock Exchange Listed Company Manual. 
  
 Section 19. Merger or Consolidation or Change of Name of Rights Agent. 
  
 (a) Any corporation into which the Rights Agent or any successor Rights
Agent may be merged or with which it may be consolidated, or any corporation resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any corporation succeeding to the stock transfer or
corporate trust business of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties 

  

 19 

 
hereto; provided, that such corporation would be eligible for appointment as a successor Rights Agent under the provisions of Section 21 hereof. In case at
the time such successor Rights Agent shall succeed to the agency created by this Agreement, any of the Right Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of the
predecessor Rights Agent and deliver such Right Certificates so countersigned) and in case at that time any of the Right Certificates shall not have been countersigned, any successor Rights Agent may countersign such Right Certificates either in the
name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement. 
  
 (b) In case at any time the name of the Rights Agent shall be changed and at
such time any of the Right Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Right Certificates so countersigned) and in case at that time any of the Right
Certificates shall not have been countersigned, the Rights Agent may countersign such Right Certificates either in its prior name or in its changed name; and in all such cases such Right Certificates shall have the full force provided in the Right
Certificates and in this Agreement. 
  
 Section 20. Duties of
Rights Agent. The Rights Agent undertakes the duties and obligations imposed by this Agreement upon the following terms and conditions, by all of which the Company and the holders of Right Certificates, by their acceptance thereof, shall be
bound: 
  
 (a) The Rights Agent may consult with legal counsel
(who may be legal counsel for the Company), and the opinion of such counsel shall be full and complete authorization and protection to the Rights Agent as to any action taken or omitted by it in good faith and in accordance with such opinion.

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

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

 20 

 (e) The Rights Agent shall not be under any responsibility in respect of the validity of this Agreement
or the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Right Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the
Company of any covenant or condition contained in this Agreement or in any Right Certificate; nor shall it be responsible for any change in the exercisability of the Rights (including the Rights becoming void pursuant to Section 11(a)(ii) hereof) or
any adjustment in the terms of the Rights (including the manner, method or amount thereof) provided for in Section 3, 11, 13, 23 or 24, or the ascertaining of the existence of facts that would require any such change or adjustment (except with
respect to the exercise of Rights evidenced by Right Certificates after actual notice that such change or adjustment is required); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or
reservation of any Preference Shares to be issued pursuant to this Agreement or any Right Certificate or as to whether any Preference Shares will, when issued, be validly authorized and issued, fully paid and nonassessable. 
  
 (f) The Company agrees that it will perform, execute, acknowledge and deliver
or cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of
this Agreement. 
  
 (g) The Rights Agent is hereby authorized and
directed to accept instructions with respect to the performance of its duties hereunder from any one of the Chief Executive Officer and President, Vice President and Chief Operating Officer, the Treasurer or the Secretary 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 by it in good faith in accordance with instructions of any such officer or for any delay in acting while
waiting for those instructions. 
  
 (h) The Rights Agent and any
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 legal
entity. 
  
 (i) The Rights Agent may execute and exercise any of
the rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such
attorneys or agents or for any loss to the Company resulting from any such act, default, neglect or misconduct, provided reasonable care was exercised in the selection and continued employment thereof. 
  
 Section 21. Change of Rights Agent. The Rights Agent or any successor
Rights Agent may resign and be discharged from its duties under this Agreement upon 30 days’ notice in writing mailed to the Company and to each transfer agent of the Common Shares or Preference Shares by registered or certified mail, and,
after the Distribution Date, to the holders of the Right Certificates by first-class mail. The Company may remove the Rights Agent or any successor 

  

 21 

 
Rights Agent (with or without cause) upon 30 days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to
each transfer agent of the Common Shares or Preference Shares by registered or certified mail, and, after the Distribution Date, to the holders of the Right Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall
otherwise become incapable of acting, the Company shall appoint a successor to the Rights Agent. If the Company shall fail to make such appointment within a period of 30 days after giving notice of such removal or after it has been notified in
writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a Right Certificate (who shall, with such notice, submit his Right Certificate for inspection by the Company), then the registered holder of
any Right Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be a corporation organized and doing business
under the laws of the United States or of any other state of the United States, in good standing, which is authorized under such laws to exercise corporate trust or stock transfer powers and is subject to supervision or examination by federal or
state authority, or which is a Subsidiary of such a banking institution, and which has at the time of its appointment as Rights Agent a combined capital and surplus of at least $20 million. After appointment, the successor Rights Agent shall be
vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property
at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment, the Company shall file notice thereof in writing with the
predecessor Rights Agent and each transfer agent of the Common Shares or Preference Shares, and, after the Distribution Date, mail a notice thereof in writing to the registered holders of the Right Certificates. Failure to give any notice provided
for in this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 
  
 Section 22. Issuance of New Right Certificates. Notwithstanding any of
the provisions of this Agreement or of the Rights to the contrary, the Company may, at its option, issue new Right Certificates evidencing Rights in such form as may be approved by its Board of Directors 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 Right Certificates made in accordance with the provisions of this Agreement. 
  
 Section 23. Redemption. 
  
 (a) The Board of Directors of the Company may, at its option, at any time prior to such time as any Person becomes an Acquiring Person, redeem all but not
less than all of the then outstanding Rights at a redemption price of $.0001 per Right, as such amount may be appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (such redemption
price being hereinafter referred to as the “Redemption Price”). The redemption of the Rights by the Board of Directors may be made effective at such time, on such basis and with such conditions as the Board of Directors in its sole
discretion may establish. 
  

 22 

 (b) Immediately upon the action of the Board of Directors of the Company ordering the redemption of the
Rights pursuant to paragraph (a) of this Section 23, and without any further action and without any notice, the right to exercise the Rights will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption
Price. The Company shall promptly give public notice of any such redemption; provided, however, that the failure to give, or any defect in, any such notice shall not affect the validity of such redemption. Within 10 days after such action of the
Board of Directors ordering the redemption of the Rights, 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 Shares. Any notice that is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption
will state the method by which the payment of the Redemption Price will be made. Neither the Company nor any of its Affiliates or Associates may redeem, acquire or purchase for value any Rights at any time in any manner other than that specifically
set forth in this Section 23 or in Section 24 hereof, and other than in connection with the purchase of Common Shares prior to the Distribution Date. 
  
 Section 24. Exchange. 
  
 (a) The Board of Directors of the Company 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 11(a)(ii) hereof) for Common Shares at an exchange ratio of one Common Share per Right, subject to Section 26 of this
Agreement, and 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 of Directors 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 trust or
other entity holding Common Shares for or pursuant to the terms of any such plan), together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or more of the Common Shares then outstanding. 
  
 (b) Immediately upon the action of the Board of Directors of the Company
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 Common Shares equal to the number of such Rights held by such holder multiplied by the Exchange Ratio, subject to Section 26 of this Agreement. 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 state the method by which the
exchange of the Common Shares for Rights will be effected and, in the event of any partial exchange, the number of Rights that will be exchanged. 

  

 23 

 
Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights that have become void pursuant to the provisions of Section
11(a)(ii) hereof) held by each holder of Rights. 
  
 (c) In the
event that there shall not be sufficient Common Shares issued but not outstanding or authorized but unissued to permit any exchange of Rights as contemplated in accordance with this Section 24, the Company may take any such action as may be
necessary to authorize additional Common Shares for issuance upon exchange of the Rights. In the event the Company shall, after good faith effort, be unable to take all such action as may be necessary to authorize such additional Common Shares in a
timely manner, the Company may substitute, for each Common Share that would otherwise be issuable upon exchange of a Right, a number of Preference Shares or fraction thereof such that the current per share market price of one Preference Share
multiplied by such number or fraction is equal to the current per share market price of one Common Share as of the date of issuance of such Preference Shares or fraction thereof. 
  
 (d) The Company shall not be required to issue fractions of Common Shares or to distribute certificates which evidence
fractional Common Shares. In lieu of such fractional Common Shares, the Company shall pay to the registered holders of the Right Certificates with regard to which such fractional Common Shares would otherwise be issuable an amount in cash equal to
the same fraction of the current market value of a whole Common Share. For the purposes of this paragraph (d), the current market value of a whole Common Share shall be the closing price of a Common Share (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 (i) to pay any dividend payable in stock of any class to the holders of its Preference Shares or to make any other
distribution to the holders of its Preference Shares (other than a regularly scheduled cash dividend), (ii) to offer to the holders of its Preference Shares rights or warrants to subscribe for or to purchase any additional Preference Shares or
shares of stock of any class or any other securities, rights or options, (iii) to effect any reclassification of its Preference Shares (other than a reclassification involving only the subdivision of outstanding Preference Shares), (iv) to effect
any consolidation or merger into or with, or to effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one or more transactions, of 50% or more of the assets or earning power of the
Company and its Subsidiaries (taken as a whole) to, any other Person, (v) to effect the liquidation, dissolution or winding up of the Company, or (vi) to declare or pay any dividend on the Common Shares in Common Shares or to effect a subdivision,
combination or consolidation of the Common Shares (by reclassification or otherwise), then, in each such case, the Company shall give to each holder of a Right Certificate, in accordance with Section 26 hereof, a notice of such proposed action,
which shall specify the record date for the purposes of such stock dividend, or distribution of rights or warrants, or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution, or winding up is to take
place and the date of participation therein by the holders of the Common Shares or 

  

 24 

 
Preference Shares, if any such date is to be fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii) above at least
10 days prior to the record date for determining holders of the Preference Shares for purposes of such action, and in the case of any such other action, at least 10 days prior to the date of the taking of such proposed action or the date of
participation therein by the holders of the Common Shares or Preference Shares, whichever shall be earlier. 
  
 (b) In case the event set forth in Section 11(a)(ii) hereof shall occur, then the Company shall as soon as practicable thereafter give to each holder of a
Right Certificate, in accordance with Section 26 hereof, a notice of the occurrence of such event, which notice shall describe such event and the consequences of such event to holders of Rights under Section 11(a)(ii) hereof. 
  
 (c) Notwithstanding anything in this Agreement to the contrary, prior to the
Distribution Date a filing by the Company with the Securities and Exchange Commission shall constitute sufficient notice to the holders of securities of the Company, including the Rights, for purposes of this Agreement and no other notice need be
given. 
  
 Section 26. Notices. Notices or demands
authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Right Certificate to or on the Company shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another address is
filed in writing with the Rights Agent) as follows: 
  
 Rentech,
Inc. 
 1331 17th Street, Suite 720 
 Denver, CO 80202 
 Attention: Corporate Secretary 
  
 Subject to the provisions of Section 21 hereof, any notice or demand authorized by this Agreement to be given or made by the Company or by
the holder of any Right Certificate to or on the Rights Agent shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Company) as follows: 
  
 ComputerShare Trust Company, Inc. 
 P.O. Box 1596 
 Denver, CO 80201 

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

 25 

 Section 27. Supplements and Amendments. 
  
 (a) The Company may from time to time supplement or amend this Agreement
without the approval of any holders of Rights in order to cure any ambiguity, to correct or supplement any provision contained herein which may be defective or inconsistent with any other provisions herein, or to make any other provisions with
respect to the Rights which the Company may deem necessary or desirable, any such supplement or amendment to be evidenced by a writing signed by the Company and the Rights Agent; provided, however, that from and after such time as any Person becomes
an Acquiring Person, this Agreement shall not be amended in any manner which would adversely affect the interests of the holders of Rights. 
  
 (b) Without limiting the foregoing, the Company may at any time prior to such time as any Person becomes an Acquiring Person amend this Agreement to lower
the thresholds set forth in Sections 1(a) and 3(a) to not less than the greater of (i) the sum of .001% and the largest percentage of the outstanding Common Shares then known by the Company to be beneficially owned by any Person (other than the
Company, any Subsidiary of the Company, any employee benefit plan of the Company or any Subsidiary of the Company, or any trust or other entity holding Common Shares for or pursuant to the terms of any such plan) and (ii) 10%. 
  
 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. Benefits of this Agreement. Nothing in this Agreement shall be construed to give to any Person other than the Company, the Rights Agent
and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Shares) any legal or equitable right, remedy or claim under this Agreement: but this Agreement shall be for the sole and exclusive benefit of the
Company, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Shares). 
  
 Section 30. Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other
authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 
  
 Section 31. Governing Law. This Agreement and each Right Certificate
issued hereunder shall be deemed to be a contract made under the laws of the State of Colorado 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 32. 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. 
  

 26 

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

					
	ATTEST:	 	RENTECH, INC.
			
	 /s/ Ronald C. Butz

	 	By:	 	 /s/ Dennis L. Yakobson

	Ronald C. Butz, Secretary	 	 	 	Dennis L. Yakobson, President
		
	ATTEST:	 	COMPUTERSHARE TRUST COMPANY, INC.
			
	 	 	By:	 	 /s/ John Wahl

	 	 	Name:	 	John Wahl
	 	 	Title:	 	Trust Officer

  

 27Exhibit 10.1

XETA TECHNOLOGIES, INC. 

2004 OMNIBUS STOCK INCENTIVE PLAN

1.       Establishment and Purpose. 

          There is hereby adopted the XETA Technologies, Inc. 2004 Omnibus Stock Incentive Plan (the “Plan”). The Plan shall be in addition to the XETA Technologies 2000 Stock Option Plan. The Plan is intended to promote the interests of the Company and the stockholders of the Company by providing officers, other employees of the Company, directors who are not employees of the Company, and other persons who are expected to make a long-term contribution to the success of the Company with appropriate incentives and rewards to encourage them to enter into and continue in the employ of the Company and/or to acquire a proprietary interest in the long-term success of the Company, thereby aligning their interest more closely to the interest of stockholders. 

2.       Definitions.

          As used in the Plan, the following definitions apply to the terms indicated below: 

	
 
 
  	
 
(a)
  	
  
“Award   Agreement” shall mean the written agreement between the Company and a   Participant evidencing an Incentive Award.
  
	
  
  	
 
 
  	
  
 
  
	
 
 
  	
 
(b)
  	
  
“Board of   Directors” shall mean the Board of Directors of the Company.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
  
(c)      “Cause,”   when used in connection with the termination of a Participant’s employment by   the Company, shall mean (i)  the Participant’s willful and continued   failure to substantially perform his duties (other than any such failure   resulting from the Participant’s incapacity due to physical or mental   impairment); (ii) the willful conduct of the Participant which is   demonstrably and materially injurious to the Company or a Subsidiary,   monetarily or otherwise, or (iii) the conviction of the Participant for a   felony by a court of competent jurisdiction. The Committee shall determine   whether a termination of employment is for Cause.
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
(d)
  	
  
“Change in   Control” shall mean any of the following occurrences:
  
	
  
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
(i)
  	
  
any   “person,” as such term is used in Sections 13(d) and 14(d) of the Exchange   Act (other than the Company, any trustee or other fiduciary holding   securities under an employee benefit plan of the Company or any corporation   owned, directly or indirectly, by the stockholders of the Company in   substantially the same proportions as their ownership of stock of the Company),   is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the   Exchange Act), directly or indirectly, of securities of the Company   representing 50% or more of the combined voting power of the Company’s then   outstanding securities;
  

	
 
 
  	
 
 
  	
  
(ii)
  	
  
during any   period of not more than two consecutive years (not including any period prior   to the adoption of the Plan), individuals who at the beginning of such period   constitute the Board of Directors and any new director (other than a director   designated by a person who has entered into an agreement with the Company to   effect a transaction described in clause (i), (iii) or (iv) of   this Section) whose election by the Board of Directors or nomination for   election was approved by a vote of at least two-thirds (2/3) of   the directors then still in office who either were directors at the beginning   of the period or whose election or nomination for election was previously so   approved, cease for any reason to constitute at least a majority thereof;
  
	
  
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
(iii)
  	
  
the   stockholders of the Company approve a merger or consolidation of the Company   with any other corporation, other than (A) a merger or consolidation   that would result in the voting securities of the Company outstanding   immediately prior thereto continuing to represent (either by remaining   outstanding or by being converted into voting securities of the surviving   entity) more than 50% of the combined voting power of the voting securities   of the Company or such surviving entity outstanding immediately after such   merger or consolidation or (B) a merger or consolidation effected to   implement a recapitalization of the Company (or similar transaction) in which   no “person” (as herein above defined) acquires more than 50% of the combined   voting power of the Company’s then outstanding securities; or
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
(iv)
  	
  
the   stockholders of the Company approve a plan of complete liquidation of the   Company or an agreement for the sale or disposition by the Company of all or   substantially all of the Company’s assets.
  
	
  
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
(e)
  	
  
“Code” shall   mean the Internal Revenue Code of 1986, as amended from time to time.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
(f)
  	
  
“Committee”   shall mean the Compensation Committee of the Board of Directors. The   Committee shall consist of two or more persons each of whom is an “outside   director” within the meaning of Section 162(m) of the Code and a   “Non-Employee Director” within the meaning of Rule 16b-3 under the   Exchange Act (or who satisfies any other criteria for administering employee   benefit plans as may be specified by the Securities and Exchange Commission   in order for transactions under such plan to be exempt from the provisions of   Section 16(b) of the Exchange Act).
  

2

	
   
  	
  
(g)
  	
  
“Company”   shall mean XETA Technologies, Inc., an Oklahoma corporation.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(h)
  	
  
“Common   Stock” shall mean the common stock of the Company, $0.001 par value per   share.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(i)
  	
  
“Disability”   shall mean: (1) any physical or mental condition that would qualify a   Participant for a disability benefit under the long-term disability plan maintained   by the Company or a Subsidiary of the Company and applicable to such   Participant or, if such long-term disability plan is not applicable to the   Participant, then a “permanent and total disability” which enables the   Participant to be eligible for and receive a disability benefit under the   Federal Social Security Act ; or (2) when used in connection with the   exercise of an Incentive Stock Option following termination of employment,   disability within the meaning of Section 22(e)(3) of the Code.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(j)
  	
  
“Effective   Date” shall mean the date upon which this Plan is adopted by the Board of   Directors.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(k)
  	
  
“Exchange   Act” shall mean the Securities Exchange Act of 1934, as amended from time to   time.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(l)
  	
  
“Executive   Officer” shall have the meaning set forth in Rule 3b-7 promulgated under   the Exchange Act.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
(m)
  	
  
“Exercise   Date” shall mean the date on which a Participant may exercise an Incentive   Award.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(n)
  	
  
“Fair Market   Value” of a share of Common Stock, as of a date of determination, shall mean   (i) the closing sales price per share of Common Stock on the national   securities exchange on which such stock is principally traded for the last   preceding date on which there was a sale of such stock on such exchange, or   (ii) if the shares of Common Stock are not listed or admitted to trading   on any such exchange, the closing price as reported by the Nasdaq Stock   Market for the last preceding date on which there was a sale of such stock on   such exchange, or (iii) if the shares of Common Stock are not then   listed on the Nasdaq Stock Market, the average of the highest reported bid   and lowest reported asked prices for the shares of Common Stock as reported   by the National Association of Securities Dealers, Inc. Automated   Quotations System for the last preceding date on which there was a sale of   such stock in such market, or
(iv) if the shares of Common Stock are not   then listed on a national securities exchange or traded in an   over-the-counter market, such value as determined by the Committee in good   faith.
  

3

	
   
  	
  
(o)
  	
  
“Incentive   Award” shall mean an Option, Tandem SAR, Stand-Alone SAR, Restricted Stock   grant, Phantom Stock grant or Stock Bonus granted pursuant to the terms of   the Plan.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(p)
  	
  
“Incentive   Stock Option” shall mean an Option that is an “incentive stock option” within   the meaning of Section 422 of the Code.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(q)
  	
  
“Issue Date”   shall mean the date established by the Company on which shares of Restricted   Stock shall be registered in the name of the Participant pursuant to the terms   of Section 10(e) of the Plan.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
(r)
  	
  
“Non-Qualified   Stock Option” shall mean an Option that is not an Incentive Stock Option.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(s)
  	
  
“Option”   shall mean an option to purchase shares of Common Stock granted pursuant to   Section 7 of the Plan.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(t)
  	
  
“Participant”   means any person who is both eligible to receive an Incentive Award pursuant   to the Plan (as set forth in Section 5) and to whom an Incentive Award   is granted pursuant to the Plan, and, upon his or her death, his or her   successors, heirs, executors and administrators, as the case may be.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
(u)
  	
  
“Phantom   Stock” shall mean the right, granted pursuant to Section 11 of the Plan,   to receive in cash the Fair Market Value of a share of Common Stock.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(v)
  	
  
“Plan” shall   mean this 2004 Omnibus Stock Incentive Plan, as amended from time to time.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(w)
  	
  
“Reference   Value” shall mean, with respect to Stand-Alone SARs, the greater of the Fair   Market Value or the value given by the Compensation Committee.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(x)
  	
  
“Restricted   Stock” shall mean a share of Common Stock that is granted pursuant to the   terms of Section 10 hereof and that is subject to the restrictions set   forth in Section 10 of the Plan.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(y)
  	
  
“Rule 16b-3”   shall mean Rule 16b-3 promulgated under the Exchange Act.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(z)
  	
  
“Section 162(m)”   shall mean Section 162(m) of the Code and the regulations promulgated   thereunder.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(aa)
  	
  
“Securities   Act” shall mean the Securities Act of 1933, as amended from time to time.
  
	
  
 
  	
  
 
  	
  
 
  

4

	
  
 
  	
  
(ab)
  	
  
“Stand-Alone   SAR” shall mean a stock appreciation right granted pursuant to Section 9   of the Plan that is not related to any Option.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(ac)
  	
  
“Stock   Bonus” shall mean a bonus payable in shares of Common Stock granted pursuant   to Section 12 of the Plan.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(ad)
  	
  
“Subsidiary”   shall mean a “subsidiary corporation” within the meaning of   Section 424(f) of the Code.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(ae)
  	
  
“Tandem SAR”   shall mean a stock appreciation right granted pursuant to Section 8 of   the Plan that is related to an Option.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(af)
  	
  
“Termination   of employment,” or words of similar import, in the Plan shall be deemed,   (i) when applied to non-employee Directors, to mean “termination of   service as a director,” and (ii) when applied to employee-Directors, to   mean “termination of service as an employee and a director.”    Reference   to “termination of employment,” or words of similar import, in the Plan shall   not be deemed to apply to persons who were not employees or a director of the   Company or a Subsidiary of the Company.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(ag)
  	
  
“Vesting   Date” shall mean the date established by the Committee on which an Incentive   Award may vest.
  
	
   
  	
  
 
  	
  
 
  
	
  
3.
  	
  
Stock Subject to the Plan.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(a)
  	
  
Shares   Available for Awards.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
The maximum   number of shares of Common Stock reserved for issuance under the Plan shall   be 600,000 shares (subject to adjustment as provided herein). The total   number of shares reserved for issuance hereunder may be authorized but   unissued Common Stock or authorized and issued Common Stock held in the   Company’s treasury or acquired by the Company for the purposes of the Plan.   The Committee may direct that any stock certificate evidencing shares issued   pursuant to the Plan shall bear a legend setting forth such restrictions on   transferability as may apply to such shares pursuant to the Plan. The grant   of a Tandem SAR shall not reduce the number of shares of Common Stock with   respect to which Incentive Awards may be granted pursuant to the Plan. Upon   the exercise of any Tandem SAR, the related Option shall be canceled to the   extent of the number of shares of Common Stock as to which the Tandem SAR is   exercised and, notwithstanding the
foregoing, such number of shares shall no   longer be available for Incentive Awards under the Plan. Subject to   adjustment under Section 3(c) below, the maximum number of shares of Common   Stock that may be issued under the Plan shall be increased as of   November 1 each year, beginning November 1, 2004, by three percent   (3%) of the total number of shares of Common Stock that are issued and   outstanding on the immediately 
  

5

	
  
 
  	
  
 
  	
  
preceding   October 31st. Any provision herein to the contrary   notwithstanding, the maximum number of shares of Common Stock that may be   issued pursuant to Incentive Stock Options granted hereunder shall not exceed   600,000, subject to adjustment under Section 3(c) below.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
Individual   Limitation.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
The total   number of shares of Common Stock subject to Incentive Awards (including   Incentive Awards payable in cash but denominated as shares of Common Stock,   i.e., Stand-Alone SARs and Phantom Stock), awarded to any employee during any   tax year of the Company, shall not exceed 250,000 shares. Determinations   under the preceding sentence shall be made in a manner that is consistent   with Section 162(m) of the Code.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
Adjustment   for Change in Capitalization.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
In the event   that the Committee shall determine that any dividend or other distribution   (whether in the form of cash, Common Stock, or other property),   recapitalization, stock split, reverse stock split, reorganization, merger,   consolidation, spin-off, combination, repurchase, or share exchange, or other   similar corporate transaction or event, affects the Common Stock such that an   adjustment is appropriate in order to prevent dilution or enlargement of the   rights of Participants under the Plan, then the Committee shall make such   equitable changes or adjustments as it deems necessary or appropriate to any   or all of (i) the number and kind of shares of stock that may thereafter   be issued in connection with Incentive Awards, (ii) the number and kind   of shares of stock issued or issuable in respect of outstanding Incentive   Awards, and (iii) the exercise price, grant price, or purchase price   relating to any Incentive Award;
provided that, with respect to Incentive   Stock Options, such adjustment shall be made in accordance with   Section 424 of the Code.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
(d)
  	
  
Re-Use of   Shares.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
The   following shares of Common Stock shall again become available for Incentive   Awards: any shares subject to an Incentive Award that remain unissued upon   the cancellation, surrender, exchange or termination of such award for any   reason whatsoever; any shares of Restricted Stock forfeited; and any shares   in respect of which a stock appreciation right is settled for cash.
  

6

	
  
4.
  	
  
Administration of the Plan.
  
	
  
 
  
	
  
          The   Plan shall be administered by the Committee. The Committee shall have the   authority in its sole discretion, subject to and not inconsistent with the   express provisions of the Plan, to administer the Plan and to exercise all   the powers and authorities either specifically granted to it under the Plan   or necessary or advisable in the administration of the Plan, including,   without limitation, the authority to grant Incentive Awards; to determine the   persons to whom and the time or times at which Incentive Awards shall be   granted; to determine the type and number of Incentive Awards to be granted,   the number of shares of Stock to which an Award may relate and the terms,   conditions, restrictions and performance criteria relating to any Incentive   Award; to determine whether, to what extent, and under what circumstances an   Incentive Award may be settled, canceled, forfeited, exchanged,
or   surrendered; to grant Incentive Awards in replacement of Incentive Awards   previously granted under the Plan or under any other plan of the Company,   including without limitation a grant of Stock Options or Restricted Stock in   exchange for a Participant’s agreement to cancel a higher-priced stock option   or options  previously granted to such   Participant; to subject shares of Stock to which an Award may relate to   rights of repurchase or rights of refusal in favor of the Company under the   circumstances and upon the terms set forth in an Award Agreement; to make   adjustments in the performance goals in recognition of unusual or   non-recurring events affecting the Company or the financial statements of the   Company (to the extent in accordance with Section 162(m)of the Code, if   applicable), or in response to changes in applicable laws, regulations, or   accounting principles; to construe and interpret the Plan and any Incentive   Award; to prescribe, amend and rescind
rules and regulations relating to the   Plan; to determine the terms and provisions of Award Agreements; and to make   all other determinations deemed necessary or advisable for the administration   of the Plan.
  
	
   
  
	
  
          The   Committee may, in its absolute discretion and without amendment to the Plan,   (i) accelerate the date on which any Option or Stand-Alone SAR granted under   the Plan becomes exercisable, waive or amend the operation of Plan provisions   respecting exercise after termination of employment, or otherwise adjust any   of the terms of such Option or Stand-Alone SAR (provided, however, that with   respect to Incentive Stock Options, no such change shall be made that would   cause the Incentive Stock Options to become Non-Qualified Stock Options   unless both the Participant and the Company expressly agree to such change),   and (ii) accelerate the Vesting Date or Issue Date, or waive any condition   imposed hereunder, with respect to any share of Restricted Stock or Phantom   Stock or otherwise adjust any of the terms applicable to such share.
  
	
  
 
  
	
  
          No   member of the Committee shall be liable for any action, omission or   determination relating to the Plan, and the Company shall indemnify and hold   harmless each member of the Committee and each other director or employee of   the Company to whom any duty or power relating to the administration or   interpretation of the Plan has been delegated against any cost or expense (including   counsel fees) or liability (including any sum paid in settlement of a claim   with the approval of the Committee) arising out of any action, omission or   determination relating to the Plan, if, in either case, such action, omission   or determination was taken or made by such member, director or employee in   good faith and in a manner such member, director or employee reasonably   believed to be in or not opposed to the best interests of the Company.
  

7

	
 5.
  	
 
Eligibility.
  
	
 
 
  	
 
 
  
	
  
          The   persons who shall be eligible to receive Incentive Awards pursuant to the   Plan shall be all employees and directors of the Company and its Subsidiaries   and such other persons whom the Committee determines are expected to make a   contribution to the Company.  The   Committee may grant Incentive Awards to any, all or none of such eligible   persons at any time, from time to time, during the term of the Plan.
  
	
 
 
  	
 
 
  
	
 
6.
  	
 
Awards Under the Plan; Award Agreement.
  
	
 
 
  	
 
 
  
	
  
          The   Committee may grant Options, Tandem SARs, Stand-Alone SARs, shares of   Restricted Stock, shares of Phantom Stock and Stock Bonuses, in such amounts   and with such terms and conditions as the Committee shall determine, subject   to the provisions of the Plan.
  
	
  
  	
 
 
  
	
  
          Each   Incentive Award granted under the Plan (except an unconditional Stock Bonus)   shall be evidenced by an Award Agreement that shall contain such provisions   as the Committee may in its sole discretion deem necessary or desirable. By   accepting an Incentive Award, a Participant thereby agrees that the award   shall be subject to all of the terms and provisions of the Plan and the   applicable Award Agreement.
  
	
 
 
  	
 
 
  
	
 
7.
  	
 
Options.
  
	
 
 
  	
 
 
  
	
 
 
  	
 
(a)
  	
  
Identification   of Options.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
Each Option   shall be clearly identified in the applicable Award Agreement as either an   Incentive Stock Option or a Non-Qualified Stock Option.
  
	
  
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
(b)
  	
  
Exercise   Price.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
Each Award   Agreement with respect to an Option shall set forth the amount (the “option   exercise price”) payable by the grantee to the Company upon exercise of the   Option. The Option exercise price per share shall be set by the Committee in   its discretion on a case by case basis, but in the case of an Incentive Stock   Option shall not be less than the Fair Market Value of a share of Common   Stock on the date of grant.
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
  
  	
 
(c)
  	
  
Term and   Exercise of Options.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
(i)
  	
  
Unless the   applicable Award Agreement provides otherwise, an Option shall become   cumulatively exercisable as to 25 percent of the shares covered thereby   on each of the first, second, third and fourth anniversaries of the date of   grant. The Committee shall determine the 
  

8

	
 
 
  	
 
 
  	
  
 
  	
  
expiration   date of each Option; provided, however, that no Incentive Stock Option shall   be exercisable more than 10 years after the date of grant. Unless the   applicable Award Agreement provides otherwise, no Option shall be exercisable   prior to the first anniversary of the date of grant.
  
	
  
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
(ii)
  	
  
An Option   shall be exercised by delivering notice to the Company’s principal office, to   the attention of its Secretary, no less than one business day in advance of   the effective date of the proposed exercise. An Option may also be exercised   electronically by notifying the Company’s agent, pursuant to the methods then   in use by that agent. Such notice shall specify the number of shares of   Common Stock with respect to which the Option is being exercised and the   effective date of the proposed exercise and shall be signed by the   Participant or other person then having the right to exercise the Option.   Such notice may be withdrawn at any time prior to the close of business on   the business day immediately preceding the effective date of the proposed   exercise. Payment for shares of Common Stock purchased upon the exercise of   an Option shall be made on the effective date of such exercise by one or a   combination of the following means:
(i) in cash, by certified check,   bank cashier’s check or wire transfer; (ii) by delivering a properly   executed exercise notice to the Company together with a copy of irrevocable   instructions to a broker to deliver promptly to the Company the amount of   sale or loan proceeds to pay the full amount of the exercise price,   (iii) by delivering shares of Common Stock owned by the Participant for   at least six months with appropriate stock powers, (iv) by any other means   which the Committee, in its sole discretion, determines to provide legal   consideration for the Common Stock and to be consistent with the purposes of   the Plan, or (v) any combination of the foregoing forms. In determining   the number of shares of Common Stock necessary to be delivered to or retained   by the Company, such shares shall be valued at their Fair Market Value as of   the Exercise Date.
  
	
  
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
(iii)
  	
  
Certificates   for shares of Common Stock purchased upon the exercise of an Option shall be   issued in the name of the Participant or other person entitled to receive   such shares, and delivered to the Participant or such other person as soon as   practicable following the Effective Date on which the Option is exercised. In   the event of an exercise by way of electronic means, no actual Certificates   need be issued.
  

9

	
 
 
  	
 
(d)
  	
  
Limitations   on Incentive Stock Options.
  
	
 
 
  	
 
 
  	
  
 
  
	
  
  	
 
 
  	
  
(i)
  	
  
To the   extent that the aggregate Fair Market Value of shares of Common Stock with   respect to which Incentive Stock Options are exercisable for the first time   by a Participant during any calendar year under the Plan and any other stock   option plan of the Company (or any Subsidiary of the Company) shall exceed   $100,000, or such higher value as may be permitted under Section 422 of   the Code, such Options shall be treated as Non-Qualified Stock Options. Such   Fair Market Value shall be determined as of the date on which each such   Incentive Stock Option is granted.
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
(ii)
  	
  
No Incentive   Stock Option may be granted to an individual if, at the time of the grant,   such individual owns stock possessing more than ten percent of the total   combined voting power of all classes of stock of the Company unless   (i) the exercise price per share of such Incentive Stock Option is at   least 110 percent of the Fair Market Value of a share of Common Stock of   the Company, or of its parent or subsidiary corporation, at the time such   Incentive Stock Option is granted and (ii) such Incentive Stock Option   is not exercisable after the expiration of five years from the date such   Incentive Stock Option is granted.
  
	
  
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
(e)
  	
  
Effect of   Termination of Employment.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
(i)
  	
  
Unless the   applicable Award Agreement provides otherwise, in the event that the   employment of a Participant with the Company or a Subsidiary of the Company   shall terminate for any reason other than death, Disability or Cause,   (i) Options granted to such Participant, to the extent that they are   exercisable at the time of such termination, shall remain exercisable until the   date that is three months  (or   120 days in the case of a “Non-Qualified Stock Option”) after such   termination, on which date they shall expire, and (ii) Options granted   to such Participant, to the extent that they were not exercisable at the time   of such termination, shall expire at the close of business on the date of   such termination. Notwithstanding the foregoing, no Option shall be   exercisable after the expiration of its term.
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
  
  	
 
 
  	
  
(ii)
  	
  
Unless the   applicable Award Agreement provides otherwise, in the event that the   employment of a Participant with the Company or a Subsidiary of the Company   shall terminate on account of the Disability or death of the Participant   (i) Options granted to such Participant, to the extent that they were   exercisable at the time of such termination, shall remain exercisable until   the first anniversary of such termination, on which date they shall expire,   and (ii) Options granted to such Participant, to the extent that they   were not exercisable at the time of such termination, shall expire at the   close of business on the date of such termination. Notwithstanding the   foregoing, no Option shall be exercisable after the expiration of its term.
  

10

	
 
 
  	
 
 
  	
  
(iii)
  	
  
Unless an   applicable Award Agreement issued after the date hereof provides otherwise,   if a Participant’s employment with the Company or a Subsidiary of the Company   is terminated for Cause, all unexercised Options held by the Participant   shall immediately be forfeited.
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
  
  	
 
(f)
  	
  
Effect of   Change in Control.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
Upon the   occurrence of a Change in Control, (i) Options granted to a Participant,   to the extent that they were exercisable at the time of a Change in Control,   shall remain exercisable until their expiration notwithstanding the   provisions of Section 7(e)(1) and (2) of the Plan, and   (ii) Options granted to such Participant, to the extent they were not   exercisable at the time of a Change in Control, shall expire at the close of   business on the date of such Change in Control. Notwithstanding the   foregoing, no Option shall be exercisable after the expiration of its term.   Any vested, exercisable Options outstanding at the time of a Change in   Control shall be cashed out, converted to options of the acquiring entity,   assumed by the acquiring entity or otherwise disposed of in the manner   provided in any shareholder-approved agreement or plan governing or providing   for such Change in Control (“Change in Control
Agreement”); provided that any   such cash-out, conversion, assumption or disposition of the Options shall not   deprive the Option holder of the inherent value of his Options, measured   solely by the excess of the Fair Market Value of the underlying Option shares   immediately prior to the Change in Control over the Option exercise price,   without the holder’s consent. In the absence of such governing provisions in   a Change in Control Agreement, the Committee in its sole discretion may on a   case by case basis require any vested, exercisable Options that remain   outstanding upon a Change in Control to be cashed out and terminated in   exchange for a lump sum cash payment, shares of the acquiring entity or a   combination thereof equal in value to the fair market value of the Option,   measured in the manner described above, immediately prior to the Change in   Control. Any non-vested Options shall terminate upon a Change in Control   unless: (i) otherwise provided in the Change
in Control Agreement or in   a written agreement, such as a severance agreement, between the Company and   the Participant; or (ii) the Committee in its sole discretion on a case   by case basis elects in writing to waive termination and/or accelerate   vesting.
  

11

	
 
8.
  	
 
Tandem SARs.
  
	
 
 
  	
 
 
  
	
  
          The   Committee may grant in connection with any Option granted hereunder one or   more Tandem SARs relating to a number of shares of Common Stock less than or   equal to the number of shares of Common Stock subject to the related Option.   A Tandem SAR may be granted at the same time as, or, in the case of a   Non-Qualified Stock Option, subsequent to the time that, its related Option   is granted.
  
	
 
 
  
	
 
 
  	
 
(a)
  	
  
Benefit Upon   Exercise.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
The exercise   of a Tandem SAR with respect to any number of shares of Common Stock shall   entitle the Participant to a cash payment, for each such share, equal to the   excess of (i) the Fair Market Value of a share of Common Stock on the   Exercise Date over (ii) the option exercise price per share of the   related Option. Such payment shall be made as soon as practicable after the   effective date of such exercise.
  
	
  
  	
 
 
  	
  
 
  
	
 
 
  	
 
(b)
  	
  
Term and   Exercise of Tandem SAR.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
(i)
  	
  
A Tandem SAR   shall be exercisable only if and to the extent that its related Option is   exercisable.
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
(ii)
  	
  
The exercise   of a Tandem SAR with respect to a number of shares of Common Stock shall   cause the immediate and automatic cancellation of its related Option with   respect to an equal number of shares. The exercise of an Option, or the   cancellation, termination or expiration of an Option (other than pursuant to   this Section 8(b)(2)), with respect to a number of shares of Common   Stock shall cause the automatic and immediate cancellation of any related   Tandem SARs to the extent that the number of shares of Common Stock remaining   subject to such Option is less than the number of shares then subject to such   Tandem SAR. Such Tandem SARs shall be canceled in the order in which they   become exercisable.
  
	
  
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
(iii)
  	
  
No Tandem   SAR shall be assignable or transferable otherwise than together with its   related Option, and any such transfer or assignment will be subject to the   provisions of Section 20 of the Plan.
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
(iv)
  	
  
A Tandem SAR   shall be exercisable by delivering notice to the Company’s principal office,   to the attention of its Secretary, no less than one business day in advance   of the effective date of the proposed exercise. A Tandem SAR may also be   exercised electronically by notifying the Company’s agent, pursuant to the   methods then in use by that agent. Such notice shall specify the number of   shares of Common Stock with respect to which the Tandem SAR is being   exercised and the effective date of the proposed exercise and shall be signed   by the Participant or other person then having the right to exercise the   Option to which the Tandem SAR is related. Such notice may be withdrawn at   any time prior to the close of business on the business day immediately   preceding the effective date of the proposed exercise.
  

12

	
 
9.
  	
 
Stand-Alone SARs.
  
	
 
 
  	
 
 
  
	
 
 
  	
 
(a)
  	
  
Benefit Upon   Exercise.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
The exercise   of a Stand-Alone SAR with respect to any number of shares of Common Stock   shall entitle the Participant to a cash payment, for each such share, equal   to the excess of (i) the Fair Market Value of a share of Common Stock on   the Exercise Date over (ii) the Reference Value of the Stand-Alone SAR.   Such payments shall be made as soon as practicable after the effective date   of such exercise.
  
	
  
  	
 
 
  	
  
 
  
	
 
 
  	
 
(b)
  	
  
Term and   Exercise of Stand-Alone SARs.
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
(i)
  	
  
Unless the   applicable Award Agreement provides otherwise, a Stand-Alone SAR shall become   cumulatively exercisable as to 25 percent of the shares covered thereby   on each of the first, second, third and fourth anniversaries of the date of   grant. The Committee shall determine the expiration date of each Stand-Alone   SAR. Unless the applicable Award Agreement provides otherwise, no Stand-Alone   SAR shall be exercisable prior to the first anniversary of the date of grant.
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
(ii)
  	
  
A   Stand-Alone SAR shall be exercised by delivering notice to the Company’s   principal office, to the attention of its Secretary, no less than one   business day in advance of the effective date of the proposed exercise. A   Stand-Alone SAR may also be exercised electronically by notifying the   Company’s agent, pursuant to the methods then in use by that agent. Such   notice shall specify the number of shares of Common Stock with respect to   which the Stand-Alone SAR is being exercised, and the effective date of the   proposed exercise, and shall be signed by the Participant. The Participant   may withdraw such notice at any time prior to the close of business on the   business day immediately preceding the effective date of the proposed   exercise.
  
	
  
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
(c)
  	
  
Effect of   Termination of Employment.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
The   provisions set forth in Section 7(e) with respect to the exercise of   Options following termination of employment shall apply as well to the   exercise of Stand-Alone SARs.
  

13

	
  
 
  	
  
(d)
  	
  
Effect of   Change in Control.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
Upon the   occurrence of a Change in Control, (i) Stand-Alone SARs granted under   the Plan, to the extent exercisable at the time of a Change in Control, shall   remain exercisable until their expiration notwithstanding the provisions of   Section 7(e) of the Plan that are incorporated into this Section 9,   and (ii) Stand-Alone SARs not exercisable at the time of a Change in   Control shall expire at the close of business on the date of such Change in   Control. Any vested, exercisable Stand-Alone SARs shall, upon a Change in   Control, be cashed out, converted, assumed or otherwise disposed of in the   same manner as applies to Options under Section 7(f).
  
	
  
 
  	
  
 
  	
  
 
  
	
  
10.
  	
  
Restricted Stock.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(a)
  	
  
Issue Date   and Vesting Date.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
At the time   of the grant of shares of Restricted Stock, the Committee shall establish an   Issue Date or Issue Dates and a Vesting Date or Vesting Dates with respect to   such shares. The Committee may divide such shares into classes and assign a   different Issue Date and/or Vesting Date for each class. If the grantee is   employed by the Company or a Subsidiary of the Company on an Issue Date   (which may be the date of grant), the specified number of shares of Restricted   Stock shall be registered in the grantee’s name and evidenced in accordance   with the provisions of Section 10(e) of the Plan. Provided that all   conditions to the vesting of a share of Restricted Stock imposed pursuant to   Section 10(b) of the Plan are satisfied, and except as provided in   Section 10(g) of the Plan, upon the occurrence of the Vesting Date with   respect to a share of Restricted Stock, such share shall vest and the   restrictions of
Section 10(c) of the Plan shall lapse.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
Conditions   to Vesting.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
At the time   of the grant of shares of Restricted Stock, the Committee may impose such   restrictions or conditions to the vesting of such shares as it, in its   absolute discretion, deems appropriate.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
Restrictions   on Transfer Prior to Vesting.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
Prior to the   vesting of a share of Restricted Stock, no transfer of a Participant’s rights   with respect to such share, whether voluntary or involuntary, by operation of   law or otherwise, shall be permitted. Immediately upon any attempt to   transfer such rights, such share, and all of the rights related thereto,   shall be forfeited by the Participant.
  

14

	
 
 
  	
 
(d)
  	
  
Dividends on   Restricted Stock.
  
	
  
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
The   Committee in its discretion may require that any dividends paid on shares of   Restricted Stock shall be held in escrow until all restrictions on such   shares have lapsed.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
(e)
  	
  
Restricted   Stock Certificates.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
Each   Restricted Stock Award may be evidenced in such a manner as the Committee   deems appropriate, including, without limitation, book entry registration or   issuance of a stock certificate or certificates and by a Restricted Stock   Award Agreement setting forth the terms of such Restricted Stock award. To   the extent a stock certificate is issued, the Secretary of the Company shall   hold such certificates for the Participant’s benefit until the Vesting Date   or until the Restricted Stock is forfeited to the Company. The Company shall   not cause a stock certificate to be issued in the name of a Participant prior   to the Vesting Date unless it has received a stock power duly endorsed by the   Participant in blank with respect to such shares. Each such stock certificate   shall bear the following legend:
  
	
  
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
 
  	
  
The   transferability of this certificate and the shares of stock represented   hereby are subject to the restrictions, terms and conditions (including   forfeiture provisions and restrictions against transfer) contained in the   2004 Omnibus Stock Incentive Plan of XETA Technologies, Inc. and an   Award Agreement entered into between the registered owner of such shares and   XETA Technologies, Inc. A copy of such Plan and Award Agreement is on   file in the office of the Secretary of XETA Technologies, Inc., 1814   West Tacoma, Broken Arrow, Oklahoma 74012.
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
Such legend   shall not be removed until such shares vest pursuant to the terms of the   applicable Award Agreement.
  
	
 
 
  	
 
 
  	
  
 
  
	
  
  	
 
(f)
  	
  
Consequences   of Vesting.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
Upon the   vesting of a share of Restricted Stock pursuant to the terms of the   applicable Award Agreement, the restrictions of Section 10(c) of the   Plan shall lapse, except as otherwise provided in the Award Agreement.   Reasonably promptly after a share of Restricted Stock vests, the Company   shall cause to be delivered to the Participant to whom such shares were   granted, a certificate evidencing such share, free of the legend set forth in   Section 10(e) of the Plan.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
(g)
  	
  
Effect of   Termination of Employment.
  
	
 
 
  	
 
 
  	
  
 
  
	
  
  	
 
 
  	
  
(i)
  	
  
Subject to   such other provision as the Committee may set forth in the applicable Award   Agreement, and to the Committee’s amendment authority pursuant to   Section 4 of the Plan, upon the termination of a 
  

15

	
 
 
  	
 
 
  	
  
 
  	
  
Participant’s   employment by the Company or any Subsidiary of the Company for any reason   other than Cause, any and all shares that have not vested as of the date of   such termination shall be immediately forfeited by the Participant and   transferred to the Company, provided that if the Committee, in its sole   discretion and within thirty (30) days after such termination of   employment notifies the Participant in writing of its decision not to   terminate the Participant’s rights in such shares, then the Participant shall   continue to be the owner of such shares subject to such continuing   restrictions as the Committee may prescribe in such notice. If shares of   Restricted Stock are forfeited in accordance with the provision of this   Section 10, the Company shall also have the right to require the return   of all dividends paid on such shares, whether by termination of any escrow   arrangement under which such dividends are held or
otherwise.
  
	
  
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
(ii)
  	
  
In the event   of the termination of a Participant’s employment for Cause, all shares of   Restricted Stock granted to such Participant that have not vested as of the   date of such termination shall be immediately forfeited by the Participant   and transferred to the Company, together with any dividends paid on such   shares.
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
(h)
  	
  
Effect of   Change in Control.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
Upon the   occurrence of a Change in Control, (i) all restrictions on outstanding vested   shares shall immediately lapse, and (ii) all outstanding shares of Restricted   Stock that have not theretofore vested shall immediately expire and be   cancelled unless the Committee in its sole discretion on a case by case   basis, in writing, elects to waive such expiration and cancellation
  
	
  
  	
 
 
  	
  
 
  
	
 
 
  	
 
(i)
  	
  
Special   Provisions Regarding Restricted Stock Awards.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
The   Committee may designate on a case-by-case basis whether Restricted Stock   Awards are intended to be “performance based compensation” within the meaning   of Code Section 162(m). The vesting of Restricted Stock so designated   shall be based on the attainment by the Company (or a Subsidiary or division   of the Company if applicable) of performance goals pre-established by the   Committee, limited to and based on one or more of the following criteria:   specified levels of or increases in the Company’s (i) return on equity, (ii)   earnings per share, (iii) total earnings, (iv) earnings growth, (v) return on   capital, (vi) return on assets, (vii) economic value added, (viii) earnings   before interest and taxes, (ix) sales growth, (x) gross margin return on   investment, (xi) increase in the FMV of the shares, (xii) share price   (including, but not limited to, growth measures and total shareholder   return), (xiii) net operating profit,
(xiv) net income, (xv) cash flow   (including, but not limited to, operating cash flow and free cash flow),
  

16

	
  
  	
 
 
  	
  
(xvi) cash   flow return on investments (which equals net cash flow divided by total   capital), (xvii) internal rate of return, or (xviii) increase in net present   value or expense targets.  Attainment   of any such performance criteria shall be determined in accordance with   generally accepted accounting principles as in effect from time to time. Such   shares shall be released from restrictions only after the attainment of such   performance measures have been certified by the Committee.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
11.
  	
 
Phantom Stock.
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
(a)
  	
  
Vesting   Date.
  
	
  
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
At the time   of the grant of shares of Phantom Stock, the Committee shall establish a   Vesting Date or Vesting Dates with respect to such shares. The Committee may   divide such shares into classes and assign a different Vesting Date for each   class. Provided that all conditions to the vesting of a share of Phantom   Stock imposed pursuant to Section 11(c) of the Plan are satisfied, and   except as provided in Section 11(d) of the Plan, upon the occurrence of   the Vesting Date with respect to a share of Phantom Stock, such share shall   vest.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
(b)
  	
  
Benefit Upon   Vesting.
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
Upon the   vesting of a share of Phantom Stock, the Participant shall be entitled to   receive in cash, within 30 days of the date on which such share vests,   an amount equal to the sum of (i) the Fair Market Value of a share of   Common Stock on the date on which such share of Phantom Stock vests and   (ii) the aggregate amount of cash dividends paid with respect to a share   of Common Stock during the period commencing on the date on which the share   of Phantom Stock was granted and terminating on the date on which such share   vests.
  
	
  
  	
 
 
  	
  
 
  
	
 
 
  	
 
(c)
  	
  
Conditions   to Vesting.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
At the time   of the grant of shares of Phantom Stock, the Committee may impose such   restrictions or conditions to the vesting of such shares as it, in its   absolute discretion, deems appropriate.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
(d)
  	
  
Effect of   Termination of Employment.
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
  
  	
 
 
  	
  
(i)
  	
  
Subject to   such other provisions as the Committee may set forth in the applicable Award   Agreement, and to the Committee’s amendment authority pursuant to   Section 4 of the Plan, shares of Phantom Stock that have not vested,   together with any dividends credited on such shares, shall be forfeited upon   the Participant’s termination of employment for any reason other than Cause.
  

17

	
 
 
  	
 
 
  	
  
(ii)
  	
  
In the event   of the termination of a Participant’s employment for Cause, all shares of   Phantom Stock granted to such Participant that have not vested as of the date   of such termination shall immediately be forfeited, together with any   dividends credited on such shares.
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
  
  	
 
(e)
  	
  
Effect of   Change in Control.
  
	
 
 
  	
 
 
  	
  
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
Upon the   occurrence of a Change in Control, all outstanding shares of Phantom Stock   that have not theretofore vested shall immediately expire and be cancelled   unless the Committee in its sole discretion on a case by case basis, in   writing, elects to waive such expiration and cancellation.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
(f)
  	
  
Special   Provisions Regarding Phantom Stock Awards.
  
	
 
 
  	
 
 
  	
  
 
  
	
 
 
  	
 
 
  	
  
The   Committee may designate on a case by case basis whether Phantom Stock Awards   are intended to be “performance based compensation” within the meaning of   Code Section162 (m). The grant of Phantom Stock so designated shall be based   on the attainment by the Company (or a Subsidiary or division of the Company   if applicable) of performance goals pre-established by the Committee, limited   to and based on one or more of the following criteria: specified levels of or   increases in the Company’s (i) return on equity, (ii) earnings per share,   (iii) total earnings, (iv) earnings growth, (v) return on capital, (vi)   return on assets, (vii) economic value added, (viii) earnings before interest   and taxes, (ix) sales growth, (x) gross margin return on investment, (xi)   increase in the FMV of the shares, (xii) share price (including, but not   limited to, growth measures and total shareholder return), (xiii) net   operating profit, (xiv) net
income, (xv) cash flow (including, but not   limited to, operating cash flow and free cash flow), (xvi) cash flow return   on investments (which equals net cash flow divided by total capital), (xvii)   internal rate of return, or (xviii) increase in net present value or expense   targets.  Attainment of any such   performance criteria shall be determined in accordance with generally   accepted accounting principles as in effect from time to time. Such shares   shall be released from restrictions only after the attainment of such   performance measures have been certified by the Committee.
  
	
  
  	
 
 
  	
  
 
  
	
 
12.
  	
 
Stock Bonuses.
  
	
 
 
  	
 
 
  
	
 
 
  	
  
In the event   that the Committee grants a Stock Bonus, a certificate for the shares of   Common Stock comprising such Stock Bonus shall be issued in the name of the   Participant to whom such grant was made and delivered to such Participant as   soon as practicable after the date on which such Stock Bonus is payable.
  

18

	
  
13.
  	
  
Rights as a Stockholder.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
No person   shall have any rights as a stockholder with respect to any shares of Common   Stock covered by or relating to any Incentive Award until the date of   issuance of a stock certificate with respect to such shares. Except as   otherwise expressly provided in Section 3(c) of the Plan, no adjustment   to any Incentive Award shall be made for dividends or other rights for which   the record date occurs prior to the date such stock certificate is issued.
  
	
   
  	
  
 
  
	
  
14.
  	
  
No Special Employment Rights; No Right to Incentive Award.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Nothing   contained in the Plan or any Award Agreement shall confer upon any   Participant any right with respect to the continuation of employment by the   Company or any Subsidiary of the Company or interfere in any way with the   right of the Company or any Subsidiary of the Company, subject to the terms   of any separate employment agreement to the contrary, at any time to   terminate such employment or to increase or decrease the compensation of the   Participant. No person shall have any claim or right to receive an Incentive   Award hereunder. The Committee’s granting of an Incentive Award to a   Participant at any time shall neither require the Committee to grant any   other Incentive Award to such Participant or other person at any time or   preclude the Committee from making subsequent grants to such Participant or   any other person.
  
	
  
 
  	
  
 
  
	
  
15.
  	
  
Securities Matters.
  
	
  
 
  	
  
 
  
	
   
  	
  
(a)
  	
  
The Company   shall be under no obligation to effect the registration pursuant to the   Securities Act of any interests in the Plan or any shares of Common Stock to   be issued hereunder or to effect similar compliance under any state laws.   Notwithstanding anything herein to the contrary, the Company shall not be   obligated to cause to be issued or delivered any certificates evidencing   shares of Common Stock pursuant to the Plan unless and until the Company is   advised by its counsel that the issuance and delivery of such certificates is   in compliance with all applicable laws, regulations of governmental authority   and the requirements of any securities exchange on which shares of Common   Stock are traded. The Committee may require, as a condition of the issuance   and delivery of certificates evidencing shares of Common Stock pursuant to   the terms hereof and of the applicable Award Agreement, that the recipient of   such shares make such covenants,
agreements and representations, and that   such certificates bear such legends, as the Committee, in its sole   discretion, deems necessary or desirable.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
The transfer   of any shares of Common Stock hereunder shall be effective only at such time   as counsel to the Company shall have determined that the issuance and   delivery of such shares is in compliance with all applicable laws,   regulations of governmental authority and the requirements of any securities   exchange on which shares of Common Stock are traded.
  

19

	
   
  	
  
 
  	
  
The   Committee may, in its sole discretion, defer the effectiveness of any   transfer of shares of Common Stock hereunder in order to allow the issuance   of such shares to be made pursuant to registration or an exemption from   registration or other methods for compliance available under federal or state   securities laws. The Committee shall inform the Participant in writing of its   decision to defer the effectiveness of a transfer. During the period of such   deferral in connection with the exercise of an Option, the Participant may,   by written notice, withdraw such exercise and obtain the refund of any amount   paid with respect thereto.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
16.
  	
  
Withholding Taxes.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Whenever   cash is to be paid pursuant to an Incentive Award, the Company (or its agent)   shall have the right to deduct there from an amount sufficient to satisfy any   federal, state and local withholding tax requirements related thereto.   Whenever shares of Common Stock are to be delivered pursuant to an Incentive   Award, the Company (or its agent) shall have the right to require the   Participant to remit to the Company in cash an amount sufficient to satisfy   any federal, state and local withholding tax requirements related thereto.   With the approval of the Committee, a Participant may satisfy the foregoing   requirement, with respect to all or any portion of the shares to be delivered   pursuant to an Incentive Award, by electing to have the Company (or its   agent) withhold from delivery shares of Common Stock having a fair market   value equal to the minimum amount of tax to be withheld. Such shares shall be   valued at their Fair Market Value on the
date on which the amount of tax to   be withheld is determined (the “Tax Date”). Fractional share amounts shall be   settled in cash.
  
	
   
  	
  
 
  
	
  
17.
  	
  
Notification of Election Under Section 83(b) of the Code.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
If any   Participant shall, in connection with the acquisition of shares of Common   Stock under the Plan, make the election permitted under Section 83(b) of   the Code (i.e., an election to include in gross income in the year of   transfer the amounts specified in Section 83(b)), such Participant shall   notify the Company of such election within 10 days of filing notice of   the election with the Internal Revenue Service, in addition to any filing and   a notification required pursuant to regulation issued under the authority of   Code Section 83(b).
  
	
  
 
  	
  
 
  
	
  
18.
  	
  
Notification Upon Disqualifying Disposition Under Section 421(b)   of the Code.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Each Award   Agreement with respect to an Incentive Stock Option shall require the Participant   to notify the Company of any disposition of shares of Common Stock issued   pursuant to the exercise of such Option under the circumstances described in   Section 421(b) of the Code (relating to certain disqualifying   dispositions), within 10 days of such disposition.
  

20

	
  
19.
  	
  
Amendment or Termination of the Plan.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
The Board of   Directors may, at any time, suspend or terminate the Plan or revise or amend   it in any respect whatsoever; provided, however, that stockholder approval   shall be required if and to the extent the Board of Directors determines that   such approval is appropriate for purposes of satisfying Section 162(m)   or 422 of the Code or to the extent such approval is required by the rules of   Nasdaq or any stock exchange on which the Common Stock is listed. Nothing   herein shall restrict the Committee’s ability to exercise its discretionary   authority pursuant to Section 4 of the Plan, which discretion may be   exercised without amendment to the Plan. No action hereunder may, without the   consent of a Participant, reduce the Participant’s rights under any   outstanding Incentive Award.
  
	
  
 
  	
  
 
  
	
  
20.
  	
  
Transfers Upon Death; Non-Assignability.
  
	
  
 
  	
  
 
  
	
   
  	
  
Upon the   death of a Participant, outstanding Incentive Awards granted to such   Participant may be exercised only by the executor or administrator of the   Participant’s estate or by a person who shall have acquired the right to such   exercise by will or by the laws of descent and distribution. No transfer of   an Incentive Award by will or the laws of descent and distribution shall be   effective to bind the Company unless the Committee shall have been furnished   with (a) written notice thereof and with a copy of the will and/or such   evidence as the Committee may deem necessary to establish the validity of the   transfer and (b) an agreement by the transferee to comply with all the   terms and conditions of the Incentive Award that are or would have been   applicable to the Participant and to be bound by the acknowledgments made by   the Participant in connection with the grant of the Incentive Award.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
During a   Participant’s lifetime, an outstanding Incentive Award granted to such   Participant may only be exercised by the Participant or, in the case of the   Participant’s Disability, by the Participant’s legal guardian or   attorney-in-fact, and shall not otherwise be transferable.  Notwithstanding the foregoing, and subject   to the Committee’s sole discretion and any conditions as the Committee may   prescribe, a Participant may, with respect to an outstanding Option (unless   such Option is an Incentive Stock Option and the Committee and the   Participant intend that it shall retain such status), upon providing written   notice to the Secretary of the Company, elect to transfer  such Option to members of his or her   immediate family (including, but not limited to, children, grandchildren,   spouse and any other persons included in the definition of “family member” in   the General Instructions to Form S-8) or to
trusts for the benefit of such   immediate family members or to partnerships in which such family members are   the only partners; provided, however, that no such transfer by any   Participant may be made in exchange for consideration.
  

21

	
  
21.
  	
  
Expenses and Receipts.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
The expenses   of the Plan shall be paid by the Company. Any proceeds received by the   Company in connection with any Incentive Award will be used for general   corporate purposes.
  
	
  
 
  	
  
 
  
	
  
22.
  	
  
Failure to Comply.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
In addition   to the remedies of the Company elsewhere provided for herein, failure by a   Participant (or beneficiary or transferee) to comply with any of the terms   and conditions of the Plan or the applicable Award Agreement, unless such   failure is remedied by such Participant (or beneficiary or transferee) within   ten days after notice of such failure by the Committee, shall be grounds for   the cancellation and forfeiture of such Incentive Award, in whole or in part,   as the Committee, in its absolute discretion, may determine.
  
	
   
  	
  
 
  
	
  
23.
  	
  
Effective Date and Term of Plan.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
The Plan   became effective on the Effective Date, but the Plan (and any grants of   Incentive Awards made prior to stockholder approval of the Plan) shall be   subject to the requisite approval of the stockholders of the Company. In the   absence of such approval, any such Incentive Awards shall be null and void.   Unless earlier terminated by the Board of Directors, the right to grant   Incentive Awards under the Plan will terminate on the tenth anniversary of   the Effective Date. Incentive Awards outstanding at Plan termination will   remain in effect according to their terms and the provisions of the Plan.
  
	
  
 
  	
  
 
  
	
  
24.
  	
  
Applicable Law.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Except to   the extent preempted by any applicable federal law, the Plan will be   construed and administered in accordance with the laws of the State of   Oklahoma, without reference to the principles of conflicts of law.
  
	
   
  	
  
 
  
	
  
25.
  	
  
Participant Rights.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
No   Participant shall have any claim to be granted any Incentive Award under the   Plan, and there is no obligation for uniformity of treatment for   Participants. Except as provided specifically herein, a Participant or a   transferee of an Incentive Award shall have no rights as a stockholder with   respect to any shares covered by any award until the date of the issuance of   a Common Stock certificate to him for such shares.
  
	
  
 
  	
  
 
  
	
  
26.
  	
  
Unfunded Status of Awards.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
The Plan is   intended to constitute an “unfunded” plan for incentive and deferred   compensation. With respect to any payments not yet made to a Participant   pursuant to an Incentive Award, nothing contained in the Plan or any Award   Agreement shall give any such Participant any rights that are greater than   those of a general creditor of the Company.
  

22

	
  
27.
  	
  
No Fractional Shares.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
No   fractional shares of Common Stock shall be issued or delivered pursuant to   the Plan. The Committee shall determine whether cash, other Incentive Awards,   or other property shall be issued or paid in lieu of such fractional shares   or whether such fractional shares or any rights thereto shall be forfeited or   otherwise eliminated.
  
	
  
 
  	
  
 
  
	
  
28.
  	
  
Beneficiary.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
A   Participant may file with the Committee a written designation of a   beneficiary on such form as may be prescribed by the Committee and may, from   time to time, amend or revoke such designation. If no designated beneficiary   survives the Participant, the executor or administrator of the Participant’s   estate shall be deemed to be the Participant’s beneficiary.
  
	
   
  	
   
  
	
  29.
  	
  Interpretation.
  
	
   
  	
   
  
	
   
  	
  The Plan is   designed and intended to comply with Rule 16b-3 promulgated under the   Exchange Act and, with Section 162(m) of the Code, and all provisions   hereof shall be construed in a manner to so comply.
  

23

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