Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Sound Revolution Inc. - Exhibit 10.2

Consultant Agreement

THIS AGREEMENT is made on October 2, 2006.

BETWEEN

SOUND REVOLUTION INC.

1511 West 40th
Avenue
Vancouver British Columbia Canada V6M 1V7

(the "Company") 

AND

ROBERT LANNI

Coalition Entertainment
Management
10271 Yonge Street, Suite 302
Richmond Hill, Ontario

  L4C 3B5

Tel: 905.508.0025

(the “Consultant”)

IT IS AGREED as follows:

	1 	 Term of Appointment

	 	 	 
	1.1 	 The Company hereby appoints the Consultant
        to serve as a member of the Company's Board of Advisors (the "Advisory
        Board").

	 	 	 
	1.2 	 The appointment of the Consultant shall commence
        on the date of this Agreement, and shall continue until terminated in
        writing by either party.

	 	 	 
	2 	 Duties

	 	 	 
	2.1 	 The Consultants duties shall include a few
        hours of informal advisory time with the officers and directors of the
        Company by telephone or in person at least once a month.

	 	 	 
	2.2 	 If the Consultant is required to spend substantially
        longer than the time commitment set out in clause 2.1, the Company may
        at its sole and absolute discretion make one or more specific payments
        to the Consultant.

	 	 	 
	2.4 	 During his appointment, the Consultant shall:

(a)       assist the Company in finding a major
  celebrity spokesperson;

(b)       assist the Company in aligning
  itself with musicians for major promotions;

(c)       use his reasonable endeavors to
  promote and extend the interests of the Company, including assisting the other
  Advisory Board members in relation to public and corporate affairs and promotion
  of the success of the Company in general through the application of his particular
  knowledge, skill and experience;

(d)       provide the Company with an up
  to date summary of his business experience, including his main occupations for
  the past five years, and a list of all Directorships in other public companies;

— 2 —

(e)     
promptly declare, so far as the Consultant is aware, the nature of any interest,
whether direct or indirect, in any contract or proposed contract entered into by
any member of the Company; and

(f)     
comply with any insider trading policies that the Company adopts.

	3 	
      Compensation

	 	 
	3.1 	
      Remuneration. As compensation for his services,
      the Consultant shall receive, each quarterly financial period, options to
      purchase 15,000 shares of the Company's common stock with the following
      terms:

(a)      the exercise price
per share shall be equal to the closing price of the Company's common stock as
of the date the options vest;

(b)      the term of the
options shall be two years, or 90 days after the Consultant ceases to serve on
the Company's Advisory Board, whichever occurs earlier; and

(c)      the cash exercise
  of the options shall entitle the Consultant to shares registered on Form S-8
  or Form SB-2.

	3.2 	
      Bonuses. The Consultant will receive further
      compensation as options to purchase common stock of the Company,
      registered on Form S-8 upon the completion of major milestones by the
      Company as a result of an introduction by the Consultant as
  follows:

 

	  	Milestone 	Bonus 
	a) 	For each corporate sponsorship or promotional program the
        Company enters into with a company that results in over $50,000 in revenues
        to the Company. 	25,000 

        options 
	b) 	For arranging for a major "A" list celebrity of
      international stardom to be the Company's spokesperson 	50,000 
options 
	c) 	For each corporate sponsorship or promotional
      program the Company enters into with a Fortune 500 company that results in
      over $100,000 in revenues to the Company. 	50,000 

        options 

The options granted to the Consultant as a bonus will be
exercisable at a price of the five day trading average of the shares the date
that the agreement for which the bonus is being awarded is entered into. Each of
the options shall be exercisable by the Consultant for a period of 2 years after
they are granted or up to 90 days after the Consultant ceases to serve on the
Company's Advisory Board, whichever occurs earlier. or up to 90 days after the
termination of this Agreement, whichever occurs earlier. The Options shall be
registered and the cash exercise of the Options shall entitle the Consultant to
shares registered on Form S-8 or on a Form SB-2. Changes to the bonus
compensation package may be made at any time by written addendum to this
Agreement.

Further details on all options will be contained in the
corresponding option agreements which will be entered into at the time the
options will be granted.

— 3 —

	4 	
      Expenses and
  Indemnification

4.1 The Company shall reimburse the Consultant all expenses
reasonably incurred by the Consultant in the proper performance of his
obligations pursuant to this Agreement.

4.2 To the fullest extent permitted by the Company's Articles
and the applicable law, the Company agrees to defend and indemnify the
Consultant and hold him harmless against any liability that he incurs within the
scope of his service as a Consultant of the Company. 

	5 	
      Non-solicitation

	 	 	 
	5.1 	
      The Consultant also agrees that:

	 	 	 
		(a) 	
      during the term of this Agreement he or she will not hire
      or take away or cause to be hired or taken away any employee or consultant
      of the Company; and

	 	 	 
		(b) 	
      for a period of 12 months following the termination of
      this Agreement, the Consultant will not hire or take away or cause to be
      hired or taken away any employee who was in the employ of the Company
      during the 12 months preceding such termination.

	 	 	 
	6 	
      Confidential Information

	 	 	 
	6.1 	
      The Consultant acknowledges that as a member of the
      Board, he will acquire information about certain matters and things which
      are confidential to the Company, and which information is the exclusive
      property of the Company, including:

	 	 	 
		(a) 	
      trade secrets; and

	 	 	 
		(b) 	
      confidential information concerning the business
      operations or financing of the Company.

	 	 	 
	6.2 	
      The Consultant acknowledges that the information referred
      to in clause 6.1 could be used to the detriment of the Company.
      Accordingly, the Consultant undertakes not to disclose same to any third
      party either during the term of this Agreement (except as may be necessary
      in the proper provision of the Consultant’s services under this
      Agreement), or after the termination of this Agreement, except with the
      written permission of a member of the Board.

	 	 	 
	7 	
      Termination

	 	 	 
	7.1 	
      Either the Company or the Consultant may terminate this
      Agreement at any time, for any reason, provided that 30 days’ notice has
      been delivered by the party terminating the Agreement.

	 	 	 
	8 	
      Company’s Property

	 	 	 
	8.1 	
      The Consultant acknowledges that all items of any and
      every nature or kind created or used by the Consultant pursuant to this
      Agreement, or furnished by the Company to the Consultant, and all
      equipment, automobiles, credit cards, books, records, reports, files,
      diskettes, manuals, literature, confidential information or other
      materials, shall remain and be considered the exclusive property of the
      Company at all times and shall be surrendered to the Company, in good
      condition, promptly at the request of the Company, or in the absence of a
      request, on the termination of this Agreement. The Consultant hereby
      assigns any and all copyright to the Company on all literary and other
      artistic works created for the benefit of the Company towards which the
      Consultant contributes, and the Consultant waives any and all moral rights
      that may be associated with such works.

— 4 —

	9 	
      Notices

	 	 
	9.1 	
      Any notice required or permitted to be given to the
      Consultant shall be sufficiently given if delivered to the Consultant
      personally or if mailed by registered mail to the Consultant’s address
      last known to the Company, or if delivered to the Consultant via
      facsimile.

	 	 
	9.2 	
      Any notice required or permitted to be given to the
      Company shall be sufficiently given if mailed by registered mail to the
      Company’s head office at its address last known to the Consultant, or if
      delivered to the Company via facsimile.

	 	 
	10 	
      Currency

	 	 
	10.1 	
      All amounts in this Agreement are in United States
      Dollars, unless indicated otherwise.

	 	 
	11 	
      Severability

	 	 
	11.1 	
      In the event that any provision or part of this Agreement
      shall be deemed void or invalid by a court of competent jurisdiction, the
      remaining provisions or parts shall be and remain in full force and
      effect.

	 	 
	12 	
      Modification of Agreement

	 	 
	12.1 	
      Any modification to this Agreement must be in writing and
      signed by the parties or it shall have no effect and shall be
  void.

IN WITNESS WHEREOF the parties have read and understood
this agreement and agree to the terms and conditions herein.

	SOUND REVOLUTION INC. 	 	CONSULTANT 
	by its authorized signatory 	 	  
	  	 	  
	  	 	  
	/s/ Robin Ram 	 	/s/ Robert Lanni 
	Robin Ram, Chief Operating 	 	 
    
	Officer, Director 	 	Robert LanniEX. 4.1

                                RIGHTS AGREEMENT

                      ____________________________________

                              DHB INDUSTRIES, INC.

                                       and

                    AMERICAN STOCK TRANSFER & TRUST COMPANY,

                                  Rights Agent

                      ____________________________________

                           Dated as of October 6, 2006

<PAGE>
<TABLE>
<CAPTION>

                                      INDEX

                                                                                                               PAGE

<S>                                                                                                              <C>
SECTION 1.        CERTAIN DEFINITIONS.............................................................................1

SECTION 2.        APPOINTMENT OF RIGHTS AGENT.....................................................................6

SECTION 3.        ISSUE OF RIGHT CERTIFICATES.....................................................................6

SECTION 4.        FORM OF RIGHT CERTIFICATES......................................................................7

SECTION 5.        COUNTERSIGNATURE AND REGISTRATION...............................................................8

SECTION 6.        TRANSFER, SPLIT UP, COMBINATION AND EXCHANGE OF RIGHT CERTIFICATES; MUTILATED, DESTROYED, LOST
                  OR STOLEN RIGHT CERTIFICATES....................................................................9

SECTION 7.        EXERCISE OF RIGHTS; PURCHASE PRICE; EXPIRATION DATE OF RIGHTS...................................9

SECTION 8.        CANCELLATION AND DESTRUCTION OF RIGHT CERTIFICATES.............................................11

SECTION 9.        RESERVATION AND AVAILABILITY OF SHARES OF PREFERRED STOCK......................................11

SECTION 10.       PREFERRED STOCK RECORD DATE....................................................................12

SECTION 11.       ADJUSTMENT OF PURCHASE PRICE, NUMBER OF SHARES OR NUMBER OF RIGHTS.............................13

SECTION 12.       CERTIFICATE OF ADJUSTED PURCHASE PRICE OR NUMBER OF SHARES.....................................19

SECTION 13.       CONSOLIDATION, MERGER OR SALE OR TRANSFER OF ASSETS OR EARNING POWER...........................19

SECTION 14.       FRACTIONAL RIGHTS AND FRACTIONAL SHARES........................................................21

SECTION 15.       RIGHTS OF ACTION...............................................................................23

SECTION 16.       AGREEMENT OF RIGHT HOLDERS.....................................................................23

SECTION 17.       RIGHT CERTIFICATE HOLDER NOT DEEMED A STOCKHOLDER..............................................24

SECTION 18.       CONCERNING THE RIGHTS AGENT....................................................................24

SECTION 19.       MERGER OR CONSOLIDATION OR CHANGE OF NAME OF RIGHTS AGENT......................................24

SECTION 20.       DUTIES OF RIGHTS AGENT.........................................................................25

SECTION 21.       CHANGE OF RIGHTS AGENT.........................................................................27

SECTION 22.       ISSUANCE OF NEW RIGHT CERTIFICATES.............................................................27

<PAGE>

SECTION 23.       REDEMPTION AND TERMINATION.....................................................................28

SECTION 24.       EXCHANGE.......................................................................................28

SECTION 25.       NOTICE OF PROPOSED ACTIONS.....................................................................30

SECTION 26.       NOTICES........................................................................................30

SECTION 27.       SUPPLEMENTS AND AMENDMENTS.....................................................................31

SECTION 28.       PERIODIC REVIEW AND EVALUATION.................................................................31

SECTION 29.       SUCCESSORS.....................................................................................32

SECTION 30.       BENEFITS OF THIS RIGHTS AGREEMENT..............................................................32

SECTION 31.       SEVERABILITY...................................................................................32

SECTION 32.       GOVERNING LAW..................................................................................32

SECTION 33.       COUNTERPARTS...................................................................................32

SECTION 34.       DESCRIPTIVE HEADINGS...........................................................................33

SECTION 35.       FORCE MAJEURE..................................................................................33

Exhibit A         Form of Certificate of Designation for
                               Series B Junior Participating
                               Preferred Stock
Exhibit B         Form of Right Certificate
Exhibit C         Summary of Preferred Stock Purchase Rights

</TABLE>

                                       ii
<PAGE>

                                RIGHTS AGREEMENT

                  This Rights  Agreement,  dated as of October 6, 2006  ("Rights
Agreement"),   is  entered  into  between  DHB  Industries,   Inc.,  a  Delaware
corporation (the "Company"),  and American Stock Transfer & Trust Company, a New
York corporation (the "Rights Agent").

                               W I T N E S S E T H

                  WHEREAS,  on October 6, 2006,  the Board of  Directors  of the
Company   authorized  and  declared  a  dividend   distribution   of  one  right
(hereinafter referred to as a "Right") for each share of Common Stock, par value
$0.001 per share, of the Company outstanding at the close of business on October
10, 2006 (the  "Record  Date"),  (other than shares of such Common Stock held in
the  Company's  treasury on such date) and has  authorized  the  issuance of one
Right in respect of each share of Common Stock of the Company issued between the
Record Date (whether  originally  issued or issued from the Company's  treasury)
and the  Distribution  Date (as such term is defined in Section 3 hereof),  each
Right representing the right to purchase one one-thousandth of a share of Series
B Junior Participating  Preferred Stock of the Company having the rights, powers
and  preferences  set forth in the form of Certificate  of Designation  attached
hereto as Exhibit A, upon the terms and  subject to the  conditions  hereinafter
set forth; and

                  WHEREAS,  the Company  desires to appoint the Rights  Agent to
act as provided herein, and the Rights Agent is willing to so act.

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

                  Section 1.  CERTAIN  DEFINITIONS.  For purposes of this Rights
Agreement, the following terms have the meanings indicated:

                  (a) "Acquiring  Person" shall mean any Person (as  hereinafter
defined) who or which, together with all Affiliates (as hereinafter defined) and
Associates (as  hereinafter  defined) of such Person,  without the Prior Written
Approval of the Company (as hereinafter defined),  shall be the Beneficial Owner
(as hereinafter  defined) of securities of the Company  constituting 15% or more
of the  Voting  Power (as  hereinafter  defined)  of the  Company  or was such a
Beneficial  Owner at any time after the date hereof,  whether or not such Person
continues to be the Beneficial  Owner of securities  representing 15% or more of
the Voting  Power of the  Company,  but shall not include (i) the  Company,  any
Subsidiary of the Company, any employee benefit plan or compensation arrangement
of the  Company  or  any  Subsidiary  of the  Company,  or  any  entity  holding
securities of the Company to the extent  organized,  appointed or established by
the Company or any Subsidiary of the Company for or pursuant to the terms of any
such employee benefit plan or compensation  arrangement,  (ii) any Person who or
which, together with all Affiliates and Associates of such Person, inadvertently
may become the Beneficial Owner of securities of the Company representing 15% or
more of the Voting Power of the Company or  otherwise  becomes such a Beneficial
Owner without a plan or intention to acquire control of the Company,  so long as
such Person, individually or together with the Affiliates and Associates of such

<PAGE>

Person,  promptly  enters  into,  and delivers to the  Company,  an  irrevocable
commitment   promptly  to  divest,  and  thereafter  promptly  divests  (without
exercising  or  retaining  any power,  including  voting,  with  respect to such
securities),  sufficient securities of the Company so that such Person, together
with all Affiliates  and Associates of such Person,  ceases to be the Beneficial
Owner  of  15%  or  more  of  the  Voting  Power  of the  Company,  or  (iii)  a
Grandfathered Person (as hereinafter defined). Notwithstanding the foregoing, no
Person shall become an  "Acquiring  Person" as the result of an  acquisition  of
voting securities of the Company by the Company which, by reducing the amount of
such securities  outstanding,  increases the proportionate  voting power of such
securities  beneficially owned by such Person to 15% or more of the Voting Power
of the Company; PROVIDED, HOWEVER, that if a Person becomes the Beneficial Owner
of  securities  constituting  15% or more of the Voting  Power of the Company by
reason of  purchases  by the  Company  and shall,  after such  purchases  by the
Company,  become the Beneficial Owner of any additional voting securities of the
Company  without the Prior  Written  Approval of the  Company,  then such Person
shall be deemed to be an Acquiring Person.

                  (b)  "Affiliate"  and  "Associate"  shall have the  respective
meanings  ascribed  to such  terms  in  Rule  12b-2  of the  General  Rules  and
Regulations under the Exchange Act, as in effect on the date hereof.

                  (c) 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 as
         determined  pursuant to Rule 13d-3 of the General Rules and Regulations
         under the Exchange Act, as in effect on the date hereof;

                           (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 these  Rights),  warrants  or  options,  or  otherwise,  PROVIDED,
         HOWEVER,  that a Person shall not be deemed the  "Beneficial  Owner" of
         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 payment or
         exchange;  or  (B)  the  right  to  vote  pursuant  to  any  agreement,
         arrangement or understanding,  PROVIDED,  HOWEVER,  that a Person shall
         not be deemed the "Beneficial  Owner" of any security under this clause
         (B) if  the  agreement,  arrangement  or  understanding  to  vote  such
         security (1) arises  solely from a revocable  proxy or consent given in
         response to a public proxy or consent  solicitation  made  pursuant to,
         and in accordance with, the applicable rules and regulations  under the
         Exchange  Act and (2) is not also  then  reportable  by such  person on
         Schedule  13D under the Exchange  Act (or any  comparable  or successor
         report); or

                           (iii)  which  are  beneficially  owned,  directly  or
         indirectly,  by any other  Person 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 pursuant to a revocable proxy or consent as described in
         clause (B) of subparagraph  (ii) of this paragraph (c)) or disposing of
         any securities of the Company.

                                       2

<PAGE>

                  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 own beneficially hereunder.

                  (d) "Board of Directors"  shall mean the Board of Directors of
the Company as constituted from time to time.

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

                  (f)  "Close of  Business"  on any given  date  shall mean 5:00
P.M., Eastern Standard Time, on such date; PROVIDED,  HOWEVER, that if such date
is not a Business Day it shall mean 5:00 P.M.,  Eastern  Standard  Time,  on the
next succeeding Business Day.

                  (g)  "Common  Stock"  shall mean the Common  Stock,  par value
$0.001 per share,  of the  Company,  except that  "Common  Stock" when used with
reference to any Person other than the Company shall mean the capital stock with
the  greatest  Voting  Power of such  Person or the equity  securities  or other
equity  interest having power to control or direct the management of such Person
or, if such Person is a Subsidiary (as  hereinafter  defined) of another Person,
of the Person which  ultimately  controls such first mentioned  Person and which
has issued and  outstanding  such capital  stock,  equity  securities  or equity
interests.

                  (h) "Company" shall have the meaning set forth in the Preamble
of this Rights Agreement.

                  (i)  "Distribution  Date"  shall have the meaning set forth in
Section 3 hereof.

                  (j) "Exchange Act" shall mean the  Securities  Exchange Act of
1934, as amended.

                  (k)  "Exchange  Ratio"  shall  have the  meaning  set forth in
Section 24(a) hereof.

                  (l)  "Expiration  Date"  shall have the  meaning  set forth in
Section 7(a) hereof.

                  (m) "Final  Expiration  Date" shall have the meaning set forth
in Section 7(a) hereof.

                  (n)  "Grandfathered  Person"  shall mean any Person who, as of
the close of business on October 10,  2006 (the  "Grandfather  Date"),  together
with all Affiliates and Associates of such Person,  was the Beneficial  Owner of
securities  of the Company  constituting  15% or more of the Voting Power of the
Company;  PROVIDED,  HOWEVER,  that such  Person,  together  with such  Person's
Affiliates and Associates,  does not increase its or their percentage  ownership
of the Voting  Power of the Company by more than one (1)  percentage  point over
its or their percentage Beneficial Ownership on the Grandfather Date (other than
through any  acquisition  of voting  securities  of the  Company  with the Prior
Written Approval of the Company); PROVIDED FURTHER that, for purposes of the one
(1) percentage calculation,  any increase in percentage ownership shall not take

                                       3

<PAGE>

into account the effect of any  repurchases of Common Stock (or other of its own
securities) by the Company so long as the  Grandfathered  Person,  together with
such  Grandfathered  Person's  Affiliates and  Associates,  does not acquire any
voting  securities  of the  Company  without the Prior  Written  Approval of the
Company  after  the  acquisition  of voting  securities  of the  Company  by the
Company.  If a Person,  or an Affiliate  or  Associate  of such  Person,  is the
involuntary  transferee of voting securities of the Company from a Grandfathered
Person  (including,  but not limited to, when such involuntary  transfer is as a
result of the death of a Grandfathered  Person), such Person shall then become a
Grandfathered Person.

                  (o) "Independent Director" shall have the meaning set forth in
Section 28 hereof.

                  (p)  "Nasdaq"  shall  have the  meaning  set forth in  Section
11(f)(i) hereof.

                  (q) "Number of  Adjustment  Shares" shall have the meaning set
forth in Section 11(b) hereof.

                  (r) "Person"  shall mean any  individual,  firm,  corporation,
partnership,  limited liability  company or other entity,  and shall include any
successor (by merger or otherwise) of any such entity.

                  (s)   "Preferred   Stock"  shall  mean  the  Series  B  Junior
Participating Preferred Stock, par value $0.001 per share, of the Company.

                  (t)  "Principal  Party"  shall have the  meaning  set forth in
Section 13(b) hereof.

                  (u) "Prior  Written  Approval of the Company" shall mean prior
express written  consent of the Company to the actions in question,  executed on
behalf of the  Company by a duly  authorized  officer of the  Company  following
express approval by action of at least a majority of the members of the Board of
Directors then in office.

                  (v)  "Purchase  Price"  shall  have the  meaning  set forth in
Section 4(a) hereof.

                  (w)  "Record  Date"  shall have the  meaning  set forth in the
Recitals of this Rights Agreement.

                  (x)  "Redemption  Price"  shall have the  meaning set forth in
Section 23(a) hereof.

                  (y)  "Registrar"  shall have the  meaning set forth in Section
4(a) hereof.

                  (z) "Right"  shall have the meaning set forth in the  Recitals
of this Rights Agreement.

                  (aa)  "Rights  Agent"  shall have the meaning set forth in the
Preamble of this Rights Agreement.

                  (bb) "Right  Certificate"  shall have the meaning set forth in
Section 3(a) hereof.

                                       4

<PAGE>

                  (cc)  "Rights  Agreement"  shall have the meaning set forth in
the Preamble of this Rights Agreement.

                  (dd) "Section 11(b) Event" shall have the meaning set forth in
Section 11(b) hereof.

                  (ee)  "Section  13 Event"  shall  mean an event  described  in
clauses (x), (y) or (z) of Section 13(a) hereof.

                  (ff)  "Securities  Act" shall mean the Securities Act of 1933,
as amended.

                  (gg)  "Security"  shall have the  meaning set forth in Section
11(f)(i) hereof.

                  (hh)  "Stock  Acquisition  Date" shall mean the earlier of (i)
the  first  date of  public  announcement  by the  Company  or a Person  that an
Acquiring Person has become an Acquiring  Person,  or (ii) the date on which the
Company first has notice,  direct or indirect,  or otherwise  determines  that a
Person has become an Acquiring Person.

                  (ii) "Subsidiary"  shall mean, with respect to any Person, any
other Person of which  securities or other ownership  interests  having ordinary
Voting Power, in the absence of contingencies,  to elect a majority of the board
of directors  (or other  persons  performing  similar  functions)  of such other
Person are at the time  directly  or  indirectly  owned by such Person or one or
more of such  Person's  Subsidiaries,  except that  "Subsidiary"  when used with
reference to the Company shall mean any Person of which either a majority of the
Voting  Power of the  voting  equity  securities  or a  majority  of the  equity
interests is owned, directly or indirectly, by the Company.

                  (jj)  "Summary of Rights"  shall have the meaning set forth in
Section 3(b) hereof.

                  (kk) "Trading Day" shall have the meaning set forth in Section
11(f)(i) hereof.

                  (ll)  "Voting  Power"  shall  mean  the  voting  power  of all
securities  of a Person  then  outstanding  generally  entitled  to vote for the
election of directors of the Person (or, where appropriate,  for the election of
persons performing similar functions).

                                       5

<PAGE>

                  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 Stock) in  accordance  with
the terms and  conditions  hereof,  and the Rights  Agent  hereby  accepts  such
appointment.  The Company may from time to time appoint such Co-Rights Agents as
it may deem  necessary or desirable  upon ten (10) days' prior written notice to
the Rights Agent.  The Rights Agent shall have no duty to  supervise,  and in no
event shall be liable for, the acts or omissions of any such Co-Rights Agent. In
the event the Company  appoints one or more  Co-Rights  Agents,  the  respective
duties of the Rights  Agents and any  Co-Rights  Agents  shall be as the Company
shall determine.

                  Section 3. ISSUE OF RIGHT CERTIFICATES.

                  (a) Until the  earlier  of (i) the  Close of  Business  on the
tenth  Business  Day  after  the  Stock  Acquisition  Date or (ii) the  Close of
Business on the tenth  Business Day (or such later date as may be  determined by
action of the Board of Directors  but in no event later than the tenth  Business
Day after such time as any Person  becomes an Acquiring  Person)  after the date
that a tender or  exchange  offer by any Person  (other  than the  Company,  any
Subsidiary of the Company, any employee benefit plan or compensation arrangement
of the  Company or of any  Subsidiary  of the  Company,  or any  entity  holding
securities of the Company to the extent  organized,  appointed or established by
the Company or any Subsidiary of the Company for or pursuant to the terms of any
such employee  benefit plan or  compensation  arrangement) is first published or
sent or given  within the  meaning of Rule  14d-2(a)  of the  General  Rules and
Regulations  under the Exchange Act,  without the Prior Written  Approval of the
Company,  which tender or exchange offer would result in any Person becoming the
Beneficial  Owner of Voting  Power  aggregating  15% or more of the  outstanding
Voting  Power  (including  any such date which is after the date of this  Rights
Agreement  and prior to the  issuance of the  Rights;  the earlier of such dates
being herein  referred to as the  "Distribution  Date"),  (y) the Rights will be
evidenced  (subject to the provisions of paragraph (b) of this Section 3) by the
certificates  for the Common Stock registered in the names of the holders of the
Common  Stock  (which  certificates  for Common Stock shall be deemed also to be
Right  Certificates) and not by separate Right  Certificates,  as more fully set
forth below, and (z) the Rights (and the right to receive certificates therefor)
will be  transferable  only in  connection  with the transfer of the  underlying
shares of Common Stock,  as more fully set forth below.  As soon as  practicable
after the  Company  has  notified  the  Rights  Agent of the  occurrence  of the
Distribution  Date, the Company shall prepare and execute,  and the Rights Agent
shall  countersign and send, by first class,  insured,  postage prepaid mail, to
each  record  holder  of the  Common  Stock as of the Close of  Business  on the
Distribution  Date,  at the address of such  holder  shown on the records of the
Company, a right certificate, in substantially the form of Exhibit B hereto (the
"Right  Certificate"),  evidencing  one Right for each share of Common  Stock so
held, subject to adjustment as provided herein. As of and after the Distribution
Date, the Rights will be evidenced solely by such Right Certificates.

                  (b) On the Record Date or as soon as  practicable  thereafter,
the Company will send a copy of a Summary of Rights to Purchase Preferred Stock,
in  substantially  the form of Exhibit C hereto (the  "Summary of  Rights"),  by
first-class,  postage prepaid mail, to each record holder of the Common Stock as
of the Close of Business on the Record Date, at the address of such holder shown
on the records of the Company. With respect to certificates for the Common Stock
outstanding as of the Record Date, until the  Distribution  Date (or the earlier

                                       6

<PAGE>

redemption,  expiration  or  termination  of the  Rights),  the  Rights  will be
evidenced by such  certificates  for the Common Stock registered in the names of
the holders of the Common Stock and the  registered  holders of the Common Stock
shall  also  be  registered  holders  of  the  associated   Rights.   Until  the
Distribution Date (or the earlier  redemption,  expiration or termination of the
Rights),  the surrender for transfer of any of the  certificates  for the Common
Stock  outstanding  in  respect  of which  Rights  have been  issued  shall also
constitute  the  transfer  of  the  Rights  associated  with  the  Common  Stock
represented by such certificate.

                  (c)  Certificates for the Common Stock issued after the Record
Date but  prior  to the  earlier  of the  Distribution  Date or the  redemption,
expiration or termination of the Rights shall be deemed also to be  certificates
for Rights and shall have impressed, printed or written on, or otherwise affixed
to them a legend substantially to the following effect:

                  This certificate also evidences and entitles the holder hereof
                  to certain Rights as set forth in a Rights  Agreement  between
                  DHB  Industries,  Inc.  (the  "Company")  and  American  Stock
                  Transfer & Trust Company, as Rights Agent, as it may from time
                  to time be supplemented  or amended (the "Rights  Agreement"),
                  the terms of which are incorporated  herein by reference and a
                  copy of which is on file at the principal executive offices of
                  the Company. Under certain circumstances,  as set forth in the
                  Rights  Agreement,  such Rights may expire or may be redeemed,
                  exchanged  or be  evidenced  by separate  certificates  and no
                  longer be evidenced by this certificate. The Company will mail
                  to  the  holder  of  this  certificate  a copy  of the  Rights
                  Agreement  without charge  promptly after receipt of a written
                  request therefor.  Under certain circumstances,  Rights issued
                  to or  held  by  Acquiring  Persons  or  their  Affiliates  or
                  Associates  (as  defined  in the  Rights  Agreement)  and  any
                  subsequent holder of such Rights may become null and void.

With respect to such  certificates  containing the foregoing  legend,  until the
Distribution Date (or the earlier  redemption,  expiration or termination of the
Rights),  the  Rights  associated  with the  Common  Stock  represented  by such
certificates  shall be evidenced by such  certificates  alone, and the surrender
for transfer of any of such  certificates  shall also constitute the transfer of
the Rights associated with the Common Stock represented by such certificates.

                  In the event that the Company purchases or acquires any Common
Stock  after the  Record  Date but prior to the  Distribution  Date,  any Rights
associated  with such Common Stock shall be deemed  canceled and retired so that
the Company shall not be entitled to exercise any Rights  associated with shares
of Common Stock which are no longer outstanding.

                  Section 4. FORM OF RIGHT CERTIFICATES.

                  (a) The  Right  Certificates  (and the  forms of  election  to
purchase shares and of assignment to be printed on the reverse thereof) shall be
in  substantially  the same form as  Exhibit B hereto and may have such marks of
identification  or  designation  and such  legends,  summaries  or  endorsements
printed thereon as the Company may deem  appropriate and as are not inconsistent
with the  provisions of this Rights  Agreement,  or as may be required to comply
with any  applicable  law,  rule or regulation or with any rule or regulation of
any stock  exchange  on which the Rights may from time to time be listed,  or to
conform to customary usage.  Subject to the provisions of Section 11 and Section

                                       7

<PAGE>

22 hereof,  the Right  Certificates,  whenever issued,  shall be dated as of the
Record  Date,  and on their face shall  entitle the holders  thereof to purchase
such number of one one-thousandths of a share of Preferred Stock as shall be set
forth  therein  at the  price  per one  one-thousandth  of a share as set  forth
therein (the "Purchase  Price"),  but the number and identity of such shares and
the  Purchase  Price shall be and remain  subject to  adjustment  as provided in
Sections 11, 13 and 22 hereof.

                  (b)  Any  Right   Certificate   issued  pursuant  hereto  that
represents Rights beneficially owned by (i) an Acquiring Person or any Associate
or Affiliate of an Acquiring  Person,  (ii) a transferee of an Acquiring  Person
(or of any such  Associate or Affiliate)  which  becomes a transferee  after the
Acquiring  Person becomes such, or (iii) a transferee of an Acquiring Person (or
of any such  Associate or  Affiliate)  which  becomes a  transferee  prior to or
concurrently  with the Acquiring  Person  becoming such and which  receives such
Rights pursuant to either (A) a transfer (whether or not for consideration) from
the Acquiring  Person (or any such  Associate or Affiliate) to holders of equity
interests in such  Acquiring  Person (or such  Associate or Affiliate) or to any
Person with whom such Acquiring  Person (or such Associate or Affiliate) has any
continuing plan,  agreement,  arrangement or understanding  regarding either the
transferred  Rights,  shares of  Company  Common  Stock or the  Company or (B) a
transfer which a majority of the Board of Directors has determined to be part of
a plan,  agreement,  arrangement or understanding which has as a primary purpose
or effect  the  avoidance  of Section  7(e),  and any Right  Certificate  issued
pursuant  to  Section 6 hereof,  Section  11 hereof or  Section  22 hereof  upon
transfer,  exchange,  replacement  or adjustment of any other Right  Certificate
referred  to in this  sentence,  shall  contain  (to the  extent  feasible)  the
following legend:

                  The Rights  represented by this Right  Certificate are or were
                  beneficially  owned by a Person who was or became an Acquiring
                  Person or an Affiliate or an Associate of an Acquiring Person.
                  Accordingly, this Right Certificate and the Rights represented
                  hereby are void in the circumstances specified in Section 7(e)
                  of the Rights Agreement.

The failure to print the foregoing  legend on any such Right  Certificate or any
defect  therein shall not affect in any manner  whatsoever  the  application  or
interpretation of the provisions of Section 7(e) hereof.

                  Section 5. COUNTERSIGNATURE AND REGISTRATION.

                  (a) The Right  Certificates shall be executed on behalf of the
Company by its Chairman,  President,  Chief Executive  Officer,  Chief Financial
Officer or any Senior Vice President, either manually or by facsimile signature,
and shall have affixed  thereto the Company's seal or a facsimile  thereof which
shall be attested by the  Secretary or any  Assistant  Secretary of the Company,
either  manually or by  facsimile  signature.  The Right  Certificates  shall be
countersigned  manually or by  facsimile  signature  by the Rights  Agent or the
registrar or co-registrar  for the Common Stock (the  "Registrar") and shall not
be valid for any  purpose  unless so  countersigned.  In case any officer of the
Company whose manual or facsimile signature is affixed to the Right Certificates
shall cease to be such  officer of the Company  before  countersignature  by the
Rights Agent or the  Registrar  and  issuance and delivery by the Company,  such
Right  Certificates,  nevertheless,  may be countersigned by the Rights Agent or
the Registrar, issued and delivered with the same force and effect as though the
person who signed such Right  Certificates  had not ceased to be such officer of

                                       8

<PAGE>

the Company. Any Right Certificate may be signed on behalf of the Company by any
person who, at the actual date of the execution of such Right Certificate, shall
be a proper officer of the Company to sign such Right  Certificate,  although at
the date of the execution of this Rights  Agreement any such person was not such
an officer.

                  (b) Following  the  Distribution  Date,  the Rights Agent will
keep or cause to be kept,  at its  stockholder  services  office  or such  other
office  designated for such purpose,  books for registration and transfer of the
Right  Certificates  issued  hereunder.  Such  books  shall  show the  names and
addresses of the  respective  holders of the Right  Certificates,  the number of
Rights evidenced on its face by each of the Right Certificates,  the certificate
number  of each of the  Right  Certificates  and the  date of 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 Expiration Date (as such term is defined in Section
7(a) hereof),  any Right  Certificate or Right  Certificates may be transferred,
split  up,  combined  or  exchanged  for  another  Right  Certificate  or  Right
Certificates,  entitling  the  registered  holder to  purchase a like  number of
shares  of  Preferred  Stock 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 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 stockholder  services office of the Rights Agent or
such office  designated  for such  purpose.  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 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 reimbursement to
the Company and the Rights Agent of all reasonable  expenses incidental thereto,
and upon surrender to the Rights Agent and cancellation of the Right Certificate
if mutilated,  the Company will make and deliver a new Right Certificate of like
tenor to the Rights Agent for  countersignature  and delivery to the  registered
owner in lieu of the Right Certificate so lost, stolen, destroyed or mutilated.

                  Section 7. EXERCISE OF RIGHTS; PURCHASE PRICE; EXPIRATION DATE
OF RIGHTS.

                  (a)  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 stockholder services office of
the Rights  Agent or such office  designated  for such  purpose,  together  with
payment  of the  Purchase  Price  for  each  one  one-thousandth  of a share  of
Preferred  Stock as to which the Rights are exercised,  at or prior to the Close
of Business on the  Expiration  Date.  The  "Expiration  Date",  as used in this

                                       9

<PAGE>

Rights  Agreement,  shall be the earliest of (i) the Final  Expiration  Date (as
defined  below),  (ii) the time at which the Rights are  redeemed as provided in
Section  23  hereof,  or (iii) the time at which the  Rights  are  exchanged  as
provided  in Section 24 hereof.  The "Final  Expiration  Date",  as used in this
Rights Agreement, shall be October 10, 2016.

                  (b) The Purchase Price for each one  one-thousandth of a share
of  Preferred  Stock  pursuant to the  exercise of a Right  shall  initially  be
$15.00, shall be subject to adjustment from time to time as provided in Sections
11 and 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,  with the form of
election to purchase duly executed, accompanied by payment of the Purchase Price
for each one one-thousandth of a share of Preferred Stock to be purchased and an
amount equal to any applicable transfer tax required to be paid by the holder of
the Rights  pursuant  hereto in  accordance  with  Section 9 hereof by certified
check,  bank draft or money  order  payable  to the order of the  Company or the
Rights Agent, the Rights Agent shall, subject to Section 20(k) hereof, thereupon
promptly (i) either (A)  requisition  from any  transfer  agent of the shares of
Preferred Stock (or make  available,  if the Rights Agent is the transfer agent)
certificates for the number of shares of Preferred Stock to be purchased and the
Company hereby irrevocably authorizes any such transfer agent to comply with all
such requests, or (B) if the Company, in its sole discretion, shall have elected
to deposit the shares of Preferred  Stock  issuable  upon exercise of the Rights
hereunder into a depositary,  requisition  from the depositary  agent depositary
receipts representing such number of one one-thousandths of a share of Preferred
Stock as are to be  purchased  (in which  case  certificates  for the  shares of
Preferred Stock  represented by such receipts shall be deposited by the transfer
agent with the depositary  agent) and the Company hereby directs such depositary
agent to comply with all such  requests,  (ii)  promptly  after  receipt of such
certificates  or depositary  receipts  cause the same to be delivered to or upon
the order of the registered holder of such Right Certificate, registered in such
name or names as may be  designated  by such  holder,  (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
any such cash, promptly deliver such cash to or upon the order of the registered
holder of such Right  Certificate,  (v) when  appropriate,  requisition from the
Company  the amount of cash or  securities  issuable  upon  exercise  of a Right
pursuant to the adjustment  provisions of Section 11 or the exchange  provisions
of Section 24, and (vi) after receipt of any such cash or  securities,  promptly
deliver such cash or securities to or upon the order of the registered holder of
such Right Certificate, of any such cash or securities.

                  (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.

                  (e)  Notwithstanding  anything in this Rights Agreement to the
contrary,  upon the first  occurrence  of a Section  11(b) Event or a Section 13
Event, any Rights  beneficially owned by (i) an Acquiring Person or an Associate
or Affiliate of an Acquiring  Person,  (ii) a transferee of an Acquiring  Person
(or of any such  Associate or Affiliate)  which  becomes a transferee  after the
Acquiring  Person becomes such, or (iii) a transferee of an Acquiring Person (or
of any such  Associate or  Affiliate)  which  becomes a  transferee  prior to or
concurrently  with the Acquiring  Person  becoming such and which  receives such

                                       10

<PAGE>

Rights pursuant to either (A) a transfer (whether or not for consideration) from
the Acquiring  Person (or any such  Associate or Affiliate) to holders of equity
interests in such  Acquiring  Person (or any such  Associate or Affiliate) or to
any Person with whom such Acquiring  Person (or such Associate or Affiliate) has
any  continuing  plan,  agreement,  arrangement or  understanding  regarding the
transferred  Rights,  shares of  Company  Common  Stock or the  Company or (B) a
transfer which a majority of the Board of Directors has determined to be part of
a plan,  agreement,  arrangement or understanding which has as a primary purpose
or effect the avoidance of this Section 7(e), shall be null and void without any
further  action,  and no holder of such Rights shall have any rights  whatsoever
with respect to such Rights,  whether under any  provision of this  Agreement or
otherwise.  The  Company  shall use all  reasonable  efforts to ensure  that the
provisions  of this Section 7(e) and Section 4(b) are complied  with,  but shall
have no liability to any holder of Rights or any other Person as a result of its
failure to make any  determination  under this Section 7(e) or Section 4(b) with
respect to an Acquiring  Person or its  Affiliates,  Associates  or  transferees
hereunder.

                  (f)  Notwithstanding  anything in this Rights Agreement to the
contrary,  neither  the  Rights  Agent nor the  Company  shall be  obligated  to
undertake any action with respect to a registered  holder upon the occurrence of
any  purported  exercise as set forth in this  Section 7 unless the  certificate
contained  in the  appropriate  form of election  to  purchase  set forth on the
reverse side of the Right  Certificate  surrendered for such exercise shall have
been properly  completed and duly executed by the registered  holder thereof and
the  Company  shall have been  provided  with such  additional  evidence  of the
identity of the Beneficial Owner (or former  Beneficial  Owner) or Affiliates or
Associates thereof as the Company shall reasonably request.

                  Section 8. CANCELLATION AND DESTRUCTION OF RIGHT CERTIFICATES.
All Right Certificates surrendered for the purpose of exercise,  transfer, split
up,  combination or exchange  shall,  if surrendered to the Company or to any of
its agents,  be delivered to the Rights  Agent for  cancellation  or in canceled
form, or, if  surrendered  to the Rights Agent,  shall be canceled by it, and no
Right Certificates shall be issued in lieu thereof except as expressly permitted
by any of the provisions of this 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 canceled Right Certificates to the Company, or shall, at the written request
of the Company, destroy such canceled Right Certificates, and in such case shall
deliver a certificate of destruction thereof to the Company.

                  Section 9. RESERVATION AND AVAILABILITY OF SHARES OF PREFERRED
STOCK.

                  (a) The Company  covenants and agrees that it will cause to be
reserved  and kept  available  out of its  authorized  and  unissued  shares  of
Preferred  Stock or its authorized and issued shares of Preferred  Stock held in
its treasury, the number of shares of Preferred Stock that will be sufficient to
permit the exercise in full of all outstanding  Rights and, after the occurrence
of a Section  11(b)  Event or a  Section  13 Event,  shall so  reserve  and keep
available a sufficient number of shares of Preferred Stock,  Common Stock and/or
other  securities  which may be required  to permit the  exercise in full of the
Rights pursuant to this Rights Agreement.

                  (b) The  Company  covenants  and agrees  that it will take all
such action as may be  necessary  to ensure that all shares of  Preferred  Stock
and/or other securities  delivered upon exercise of Rights shall, at the time of
delivery of the  certificates  for such shares or other  securities  (subject to

                                       11

<PAGE>

payment of the Purchase  Price),  be duly and validly  authorized and issued and
fully paid and nonassessable shares or securities.

                  (c) Subject to and after the date on which the  Company  comes
into  compliance  with its periodic  filing  requirements  under  Securities and
Exchange  Commission (the "SEC") rules and regulations (it being understood that
the  exercisability of the Rights will be temporarily  suspended until such time
as the Company is in compliance with said  requirements),  the Company shall use
its best  efforts  to (i)  file,  as soon as  practicable  following  the  first
occurrence  of  an  event  which  would  establish  the  Distribution   Date,  a
registration  statement under the Securities Act, with respect to the securities
purchasable upon exercise of the Rights on an appropriate  form, (ii) cause such
registration  statement to become  effective as soon as  practicable  after such
filing, and (iii) cause such registration  statement to remain effective (with a
prospectus at all times meeting the  requirements  of the Securities  Act) until
the  Expiration  Date.  The  Company  will  also  take  such  action  as  may be
appropriate under the "blue sky laws" of the various states. In addition,  after
the Company has come into compliance with its periodic filing requirements under
SEC rules and regulations,  the Company may temporarily suspend, for a period of
time not to exceed  90 days  after the later of (A) the date set forth in clause
(i) of the first  sentence  of this  Section  9(c) and (B) the date the  Company
comes into compliance with its periodic filing  requirements under SEC rules and
regulations,  the exercisability of the Rights in order to prepare and file such
registration  statement and permit it to become effective or to obtain any other
required  regulatory  approval  in  connection  with the  exercisability  of the
Rights. Upon any such suspension,  the Company shall issue a public announcement
stating that the exercisability of the Rights has been temporarily suspended, as
well as a public  announcement  at such time as the  suspension  is no longer in
effect.  Notwithstanding  any provision of this  Agreement to the contrary,  the
Rights  shall  not be  exercisable  in any  jurisdiction  unless  the  requisite
registration or qualification in such  jurisdiction  shall have been effected or
obtained.

                  (d) The Company further  covenants and agrees that it will pay
when due and payable any and all  federal and state  transfer  taxes and charges
which may be  payable  in  respect  of the  issuance  or  delivery  of the Right
Certificates  or of any shares of Preferred  Stock and/or other  securities upon
the exercise of Rights.  The Company shall not, however,  be required to pay any
transfer  tax which may be payable in respect of any  transfer  involved  in the
transfer  or  delivery  of Right  Certificates  or the  issuance  or delivery of
certificates or depositary  receipts for Preferred Stock and/or other securities
in a name  other  than that of the  registered  holder of the Right  Certificate
evidencing Rights surrendered for exercise, nor shall the Company be required to
issue or deliver any certificates or depositary receipts for shares of Preferred
Stock and/or other securities 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 satisfaction that no such tax is due.

                  Section 10.  PREFERRED  STOCK RECORD DATE.  Each person (other
than the Company) in whose name any  certificate  for shares of Preferred  Stock
(or  other  securities)  is issued  upon the  exercise  of Rights  shall for all
purposes  be deemed to have become the holder of record of the  Preferred  Stock
(or other  securities)  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 Preferred Stock (or other securities)  transfer

                                       12

<PAGE>

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  Preferred  Stock  (or other  securities)
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 stockholder  of the Company with respect to shares for which the
Rights shall be exercisable,  including,  without limitation, the right to vote,
to receive  dividends  or other  distributions  or to  exercise  any  preemptive
rights,  and shall not be entitled to receive any notice of any  proceedings  of
the Company, except as provided herein.

                  Section 11. ADJUSTMENT OF PURCHASE PRICE,  NUMBER OF SHARES OR
NUMBER OF RIGHTS.  The Purchase Price, the number and identity of shares covered
by each Right and the number of Rights  outstanding  are  subject to  adjustment
from time to time as provided in this Section 11.

                  (a) In the event the Company  shall at any time after the date
of this Rights  Agreement (i) declare a dividend on the Preferred  Stock payable
in shares of Preferred  Stock,  (ii) subdivide the outstanding  Preferred Stock,
(iii) combine the outstanding Preferred Stock into a smaller number of shares or
(iv)  issue  any  shares  of its  capital  stock  in a  reclassification  of the
Preferred  Stock  (including  any such  reclassification  in  connection  with a
consolidation  or merger in which the  Company is the  continuing  or  surviving
corporation),  except as  otherwise  provided in this  Section 11, the  Purchase
Price in effect at the time of the record date for such  dividend or the time of
the effective date of such subdivision, combination or reclassification, and the
number and kind of shares of capital stock,  including Preferred Stock, issuable
upon exercise of a Right, shall be  proportionately  adjusted so that the holder
of  any  Right  exercised  after  such  time,  upon  payment  of  the  aggregate
consideration  such holder would have had to pay to exercise such Right prior to
such time,  shall be entitled to receive the aggregate number and kind of shares
of capital  stock,  including  Preferred  Stock,  which,  if such Right had been
exercised  immediately prior to such date and at a time when the Preferred Stock
transfer books of the Company were open,  such holder would have owned upon such
exercise and been entitled to receive by virtue of such  dividend,  subdivision,
combination or reclassification.

                  (b) In the  event  any  Person  becomes  an  Acquiring  Person
("Section 11(b) Event"), then proper provision shall be made so that each holder
of a Right, subject to Section 7(e) and Section 24 hereof and except as provided
below,  shall after the later of the  occurrence of such event and the effective
date of an appropriate registration statement pursuant to Section 9 hereof, have
a right to receive,  upon exercise  thereof at the then current  Purchase Price,
multiplied  by the then number of one  one-thousandths  of a share of  Preferred
Stock for which a Right is then  exercisable,  in  accordance  with the terms of
this Rights  Agreement,  in lieu of shares of  Preferred  Stock,  such number of
shares of Common Stock of the Company as shall equal the result  obtained by (y)
multiplying  the  then  current  Purchase  Price  by  the  then  number  of  one
one-thousandths  of a share  of  Preferred  Stock  for  which  a  Right  is then
exercisable and dividing that product by (z) 50% of the current market price per
one share of Common Stock  (determined  pursuant to Section  11(f) hereof on the
date of the  occurrence of the Section 11(b) Event) (such number of shares being
referred to as the "Number of Adjustment Shares").

                  (c) In the event that there shall not be  sufficient  Treasury
shares or authorized but unissued  shares of Common Stock to permit the exercise
in full of the Rights in accordance  with the foregoing  Section 11(b),  and the
Rights become so exercisable, notwithstanding any other provision of this Rights

                                       13

<PAGE>

Agreement,  to the extent  necessary  and  permitted by  applicable  law and any
agreements  in effect on the date hereof to which the  Company is a party,  each
Right shall thereafter represent the right to receive,  upon exercise thereof at
the  then  current  Purchase  Price,  multiplied  by  the  then  number  of  one
one-thousandths  of a share  of  Preferred  Stock  for  which  a  Right  is then
exercisable,  in accordance with the terms of this Rights Agreement, a number of
shares,  or units of shares,  of (y) Common Stock,  and (z) preferred  stock (or
other equity securities) of the Company, including, but not limited to Preferred
Stock, equal in the aggregate to the Number of Adjustment Shares where the Board
of Directors  shall have in good faith  deemed such shares or units,  other than
the shares of Common Stock, to have at least the same value and voting rights as
the Common Stock (a "common stock equivalent");  PROVIDED, HOWEVER, if there are
unavailable  sufficient  shares (or  fractions of shares) of Common Stock and/or
common stock equivalents,  then the Company shall take all such action as may be
necessary  to  authorize  additional  shares  of Common  Stock or  common  stock
equivalents for issuance upon exercise of the Rights, including the calling of a
meeting of stockholders; AND PROVIDED, FURTHER, that if the Company is unable to
cause  sufficient  shares of Common Stock and/or common stock  equivalents to be
available for issuance upon exercise in full of the Rights, then the Company, to
the extent  necessary  and  permitted by  applicable  law and any  agreements or
instruments  in effect on the date  thereof  to which it is a party,  shall make
provision  to pay an  amount  in cash  equal to twice  the  Purchase  Price  (as
adjusted pursuant to this Section 11), in lieu of issuing shares of Common Stock
and/or common stock equivalents.  To the extent that the Company determines that
some action  needs to be taken  pursuant  to this  Section  11(c),  the Board of
Directors  by action of at least a majority  of its  members  then in office may
suspend the  exercisability  of the Rights for a period of up to sixty (60) days
following  the date on which the Section  11(b) Event  shall have  occurred,  in
order to decide the appropriate form of distribution to be made pursuant to this
Section  11(c)  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.  The  Board of
Directors  may, but shall not be required to,  establish  procedures to allocate
the right to receive Common Stock and common stock  equivalents upon exercise of
the Rights among  holders of Rights,  which such  allocation  may be, but is not
required to be, pro rata.

                  (d) If the Company shall fix a record date for the issuance of
rights or warrants  to all  holders of  Preferred  Stock  entitling  them (for a
period expiring within 90 calendar days after such record date) to subscribe for
or purchase  Preferred  Stock (or  securities  having the same or more favorable
rights, privileges and preferences as the Preferred Stock ("equivalent preferred
stock")) or securities  convertible into Preferred Stock or equivalent preferred
stock,  at a price  per  share of  Preferred  Stock or per  share of  equivalent
preferred  stock or having a conversion or exercise price per share, as the case
may be,  less than the current  market  price per share of  Preferred  Stock (as
defined in Section 11(f) hereof) on such record date,  the Purchase  Price to be
in effect after such record date shall be determined by multiplying the Purchase
Price in effect  immediately prior to such date by a fraction,  the numerator of
which  shall be the  number of shares of  Preferred  Stock  outstanding  on such
record date plus the number of shares of  Preferred  Stock  which the  aggregate
offering  price of the total number of shares of Preferred  Stock or  equivalent
preferred stock to be offered (and/or the aggregate initial  conversion price of
the  convertible  securities  so to be offered)  would  purchase at such current
market  price,  and the  denominator  of which  shall be the number of shares of
Preferred  Stock  outstanding  on such record date plus the number of additional
shares of Preferred  Stock and/or  equivalent  preferred stock to be offered for
subscription  or purchase  (or into which the  convertible  securities  so to be
offered are initially convertible).  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

                                       14

<PAGE>

value of such  consideration  shall be as determined in good faith by a majority
of the Board of Directors, whose determination shall be described in a statement
filed with the Rights Agent.  Shares of Preferred Stock owned by or held for the
account of the Company  shall not be deemed  outstanding  for the purpose of any
such  computation.  Such adjustment shall be made  successively  whenever such a
record date is fixed;  and in the event that such rights or warrants  are not so
issued,  the  Purchase  Price shall be adjusted to be the  Purchase  Price which
would then be in effect if such record date had not been fixed.

                  (e) If the Company shall fix a record date for the making of a
distribution to all holders of Preferred Stock (including any such  distribution
made in connection  with a  consolidation  or merger in which the Company is the
continuing or surviving  corporation) of evidences of indebtedness,  cash (other
than a regular  periodic cash  dividend out of earnings or retained  earnings of
the Company),  assets  (other than a dividend  payable in Preferred  Stock,  but
including  any  dividend  payable  in  stock  other  than  Preferred  Stock)  or
convertible  securities,   subscription  rights  or  warrants  (excluding  those
referred to in Section 11(d)  hereof),  the Purchase Price to be in effect after
such record date shall be determined by multiplying the Purchase Price in effect
immediately  prior to such  record date by a fraction,  the  numerator  of which
shall be the current  market price for one share of Preferred  Stock (as defined
in Section  11(f)  hereof) on such record  date less the fair  market  value (as
determined  in good  faith  by a  majority  of the  Board  of  Directors,  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 convertible  securities,  subscription  rights or warrants applicable to
one share of Preferred Stock, and the denominator of which shall be such current
market price for one share of Preferred Stock.  Such  adjustments  shall be made
successively  whenever  such a record date is fixed;  and in the event that such
distribution  is not so made,  the Purchase  Price shall again be adjusted to be
the  Purchase  Price  which  would then be in effect if such record date had not
been fixed.

                           (f) (i) For the purpose of any computation hereunder,
         the "current  market price" of any security (a "Security"  for purposes
         of this Section 11(f)(i)) on any date shall be deemed to be the average
         of the  daily  closing  prices  per share of such  Security  for the 30
         consecutive Trading Days (as hereinafter  defined) immediately prior to
         such date; PROVIDED, HOWEVER, that in the event that the current market
         price  per  share  of such  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 shares of such Security or (B)
         any subdivision,  combination or reclassification of such Security, and
         prior to the expiration of 30 Trading Days after the  ex-dividend  date
         for  such  dividend  or  distribution  or  the  record  date  for  such
         subdivision,  combination or  reclassification,  then, and in each such
         case,  the "current  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 or  admitted  to trading on the  principal  national  securities

                                       15

<PAGE>

         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,  as  reported  by  the  National  Association  of
         Securities Dealers, Inc. Automated Quotation System ("Nasdaq") National
         Market,  or if the Security is not listed or admitted to trading on any
         national securities exchange or included in the Nasdaq National Market,
         the   average   of  the  high  bid  and  low   asked   prices   in  the
         over-the-counter  market,  as reported  by 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 a majority of the Board of  Directors.  If on any
         such date no market maker is making a market in the Security,  the fair
         value of such  Security on such date as  determined  in good faith by a
         majority of the Board of  Directors  shall be used.  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 day on which
         the Nasdaq  National Market is open for the transaction of business or,
         if the  Security is not listed or  admitted to trading on any  national
         securities  exchange  or  included  in the Nasdaq  National  Market,  a
         Business  Day. If the Security is not publicly held or not so listed or
         traded,  "current market price" shall mean the fair value as determined
         in  good  faith  by  a  majority  of  the  Board  of  Directors,  whose
         determination  shall be described in a statement  filed with the Rights
         Agent.

                           (ii) For the  purpose of any  computation  hereunder,
         the "current market price" per share (or one one-thousandth of a share)
         of Preferred  Stock shall be determined in the same manner as set forth
         above for the Common Stock in clause (i) of this  Section  11(f) (other
         than the last sentence thereof).  If the current market price per share
         (or one  one-thousandth  of a  share)  of  Preferred  Stock  cannot  be
         determined in the manner  provided  above or if the Preferred  Stock is
         not publicly  held or listed or traded in a manner  described in clause
         (i) of this  Section  11(f),  the "current  market  price" per share of
         Preferred Stock shall be  conclusively  deemed to be an amount equal to
         1,000 (as such number may be appropriately  adjusted for such events as
         stock splits, stock dividends and recapitalizations with respect to the
         Common  Stock  occurring  after  the  date  of this  Rights  Agreement)
         multiplied  by the current  market  price per share of the Common Stock
         and the "current  market  price" per one  one-thousandth  of a share of
         Preferred Stock shall be equal to the current market price per share of
         the Common  Stock (as  appropriately  adjusted).  If neither the Common
         Stock nor the Preferred  Stock is publicly held or so listed or traded,
         "current market price" per share shall mean the fair value per share as
         determined in good faith by the Board of Directors, whose determination
         shall be described in a statement filed with the Rights Agent and shall
         be conclusive for all purposes.

                  (g) 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(g) are not  required  to be made shall be carried  forward and
taken into account in any subsequent  adjustment.  All  calculations  under this
Section 11 shall be made to the nearest cent or to the nearest ten-thousandth of
a share, as the case may be.  Notwithstanding the first sentence of this Section
11(g),  any  adjustment  required by this Section 11 shall be made no later than

                                       16
<PAGE>

the earlier of (i) three years from the date of the  transaction  which mandates
such adjustment or (ii) the Expiration Date.

                  (h)  In  the  event  that  at  any  time,  as a  result  of an
adjustment made pursuant to Section 11(a) or (b) hereof, the holder of any Right
shall be entitled to receive  upon  exercise of such Right any shares of capital
stock of the Company other than shares of Preferred Stock, 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 shares  contained in Section
11(a) through (e) hereof, inclusive, and the provisions of Sections 7, 9, 10, 13
and 14 hereof with respect to the shares of Preferred  Stock shall apply on like
terms to any such other shares.

                  (i) All Rights originally issued by the Company  subsequent to
any adjustment  made to the Purchase Price hereunder shall evidence the right to
purchase, at the adjusted Purchase Price, the number of one one-thousandths of a
share of Preferred Stock or other capital stock of the Company  purchasable from
time to time  hereunder  upon  exercise  of the  Rights,  all subject to further
adjustment of the Purchase Price.

                  (j) Unless the Company  shall have  exercised  its election as
provided in Section 11(k) hereof,  upon each adjustment of the Purchase Price as
a result of the  calculations  made in Section 11(d) and (e) hereof,  each Right
outstanding  immediately prior to the making of such adjustment shall thereafter
evidence the right to purchase,  at the adjusted  Purchase Price, that number of
one  one-thousandths  of a share of Preferred  Stock  (calculated to the nearest
one-ten-thousandth)   obtained  by  (i)   multiplying  (A)  the  number  of  one
one-thousandths  of a share of Preferred  Stock  covered by a Right  immediately
prior to the adjustment by (B) 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.

                  (k)  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 shares of Preferred Stock  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  one-thousandths
of a share of Preferred Stock for which such Right was  exercisable  immediately
prior to such adjustment.  Each Right held of record prior to such adjustment of
the number of Rights  shall  become  that  number of Rights  (calculated  to the
nearest  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(k),  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

                                       17

<PAGE>

adjustment,  and upon surrender thereof,  if required by the Company,  new Right
Certificates  evidencing  all the Rights to which such holders shall be entitled
after such adjustment.  Right Certificates so to be distributed shall be issued,
executed and  countersigned  in the manner provided for herein (and may bear, at
the option of the Company,  the adjusted Purchase Price) and shall be registered
in the names of the holders of record of Right  Certificates  on the record date
specified in the public announcement.

                  (l)  Irrespective  of any adjustment or change in the Purchase
Price or the number of shares of Preferred  Stock  issuable upon the exercise of
the  Rights,  the Right  Certificates  theretofore  and  thereafter  issued  may
continue  to express  the  Purchase  Price and the  number of shares  which were
expressed in the initial Right Certificates issued hereunder.

                  (m) Before  taking any action that would  cause an  adjustment
reducing the Purchase  Price below the then par value,  if any, of the shares of
Common Stock or other  securities and below one  one-thousandth  of the then par
value, if any, of the Preferred Stock, issuable upon exercise of the Rights, the
Company  shall  take any  corporate  action  which  may,  in the  opinion of its
counsel,  be necessary  in order that the Company may validly and legally  issue
fully paid and  nonassessable  shares of such Preferred  Stock,  Common Stock or
other  securities at such adjusted  Purchase  Price. If upon any exercise of the
Rights,  a holder is to receive a  combination  of Common Stock and common stock
equivalents, a portion of the consideration paid upon such exercise, equal to at
least  the then par value of a share of Common  Stock of the  Company,  shall be
allocated  as the  payment  for each  share of Common  Stock of the  Company  so
received.

                  (n) 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  issuing to the holder of any Right  exercised  after such record date
the shares of  Preferred  Stock and other  capital  stock or  securities  of the
Company,  if any,  issuable  upon such  exercise  over and  above the  shares of
Preferred  Stock and other capital  stock or securities of the Company,  if any,
issuable upon such  exercise on the basis of the Purchase  Price in effect prior
to such adjustment;  PROVIDED,  HOWEVER,  that the Company shall deliver to such
holder a due bill or other appropriate instrument evidencing such holder's right
to receive such  additional  shares upon the  occurrence of the event  requiring
such adjustment.

                  (o)   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 in their good faith judgment a majority of
the Board of  Directors  shall  determine  to be advisable in order that any (i)
consolidation  or subdivision of the Preferred  Stock,  (ii) issuance wholly for
cash of any Preferred  Stock at less than the then current  market price,  (iii)
issuance wholly for cash of Preferred  Stock or securities  which by their terms
are convertible into or exchangeable  for Preferred Stock,  (iv) stock dividends
or (v) issuance of rights,  options or warrants  referred to hereinabove in this
Section 11, hereafter made by the Company to the holders of its Preferred Stock,
shall not be taxable to such stockholders.

                  (p) In the  event  that at any  time  after  the  date of this
Rights  Agreement  and prior to the  Distribution  Date,  the Company  shall (i)
declare  or pay any  dividend  on the Common  Stock  payable in shares of Common
Stock or (ii) effect a subdivision,  combination or  consolidation of the Common
Stock (by  reclassification  or otherwise than by payment of dividends in shares

                                       18

<PAGE>

of Common Stock) into a greater or lesser number of shares of Common Stock, then
in any such case (y) the number of one  one-thousandths  of a share of Preferred
Stock  purchasable  after such event upon proper exercise of each Right shall be
determined  by  multiplying  the  number  of one  one-thousandths  of a share of
Preferred  Stock so purchasable  immediately  prior to such event by a fraction,
the  numerator  of which is the  number of shares  of Common  Stock  outstanding
immediately  before  such  event and the  denominator  of which is the number of
shares of Common Stock  outstanding  immediately  after such event, and (z) each
share of Common Stock outstanding immediately after such event shall have issued
with  respect  to it that  number of Rights  which  each  share of Common  Stock
outstanding  immediately  prior to such event had issued with respect to it. The
adjustments  provided  for in this  Section  11(p)  shall  be made  successively
whenever such a dividend is declared or paid or such a subdivision,  combination
or consolidation is effected.

                  (q) The Company covenants and agrees that it shall not, at any
time  after  the  Distribution  Date  and so long as the  Rights  have  not been
redeemed  pursuant  to Section  23 hereof or  exchanged  pursuant  to Section 24
hereof,  (i)  consolidate  with,  (ii)  merge  with or into,  or  (iii)  sell or
transfer, in one or more transactions,  assets or earning power aggregating more
than 50% of the  assets or earning  power of the  Company  and its  Subsidiaries
(taken as a whole) to, any other Person,  if at the time of or immediately after
such  consolidation,  merger or sale  there are any  rights,  warrants  or other
instruments  or  securities  outstanding  or  agreements  in effect  which would
substantially  diminish  or  otherwise  eliminate  the  benefits  intended to be
afforded by the Rights.

                  (r) The Company  covenants  and agrees  that,  after the Stock
Acquisition Date, it will not, except as permitted by Sections 23 and 24 hereof,
take any action the purpose or effect of which is to diminish  substantially  or
otherwise eliminate the benefits intended to be afforded by the Rights.

                  Section 12.  CERTIFICATE OF ADJUSTED  PURCHASE PRICE OR NUMBER
OF SHARES.  Whenever  an  adjustment  is made as  provided  in Sections 11 or 13
hereof, the Company shall (a) promptly prepare a certificate  setting forth such
adjustment,  and a brief statement of the facts  accounting for such adjustment,
(b)  promptly  file with the Rights Agent and with each  transfer  agent for the
Preferred Stock and the Common Stock a copy of such  certificate and (c) include
a brief summary  thereof in a mailing to each holder of a Right  Certificate  in
accordance with Section 26 hereof, or prior to the Distribution Date, disclose a
brief  summary in a filing  under the  Exchange  Act.  The Rights Agent shall be
fully  protected  in  relying  on any such  certificate  and on any  adjustments
therein contained.

                  Section  13.  CONSOLIDATION,  MERGER  OR SALE OR  TRANSFER  OF
ASSETS OR EARNING POWER.

                  (a) In the event  that,  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 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  Stock  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

                                       19

<PAGE>

other  Person  other  than to 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,  subject  to  Section  7(e)  hereof,  shall
thereafter  have the right to  receive,  upon the  exercise  thereof at the then
current Purchase Price multiplied by the then number of one one-thousandths of a
share of Preferred Stock for which a Right is then  exercisable (or if a Section
11(b) Event has occurred  prior to the first  occurrence  of a Section 13 Event,
multiplying the number of such one  one-thousandths of a share for which a Right
was  exercisable  immediately  prior to the first  occurrence of a Section 11(b)
Event  by  the  Purchase  Price  in  effect  immediately  prior  to  such  first
occurrence) in accordance  with the terms of this Rights  Agreement,  in lieu of
Preferred  Stock,  such number of shares of freely  tradable Common Stock of the
Principal Party (as  hereinafter  defined),  free and clear of liens,  rights of
call or first refusal,  encumbrances or other adverse claims,  as shall be equal
to the result obtained by (A) multiplying the then current Purchase Price by the
number of one one-thousandths of a share of Preferred Stock for which a Right is
then  exercisable  (or if a Section 11(b) Event has occurred  prior to the first
occurrence  of  a  Section  13  Event,   multiplying  the  number  of  such  one
one-thousandths  of a share for which a Right was exercisable  immediately prior
to the first occurrence of a Section 11(b) Event by the Purchase Price in effect
immediately  prior to such first  occurrence),  and dividing that product by (B)
50% of the current  market price per share of the Common Stock of such Principal
Party  (determined in the manner  described in Section 11(f) hereof) on the date
of  consummation  of such  consolidation,  merger,  sale or  transfer;  (ii) the
Principal Party shall  thereafter be liable for, and shall assume,  by virtue of
such consolidation,  merger, sale or transfer, all the obligations and duties of
the Company  pursuant to this Rights  Agreement;  (iii) the term "Company" shall
thereafter be deemed to refer to such  Principal  Party,  it being  specifically
intended that the provisions of Section 11 hereof,  except for the provisions of
11(b),  shall apply to such Principal Party; and (iv) such Principal Party shall
take  such  steps  (including,   but  not  limited  to,  the  authorization  and
reservation  of a  sufficient  number of shares  of its  Common  Stock to permit
exercise of all  outstanding  Rights in accordance  with this Section  13(a)) in
connection  with  such  consummation  as may be  necessary  to  assure  that the
provisions  hereof shall  thereafter be applicable,  as nearly as reasonably may
be, in relation to the shares of its Common Stock  thereafter  deliverable  upon
the exercise of the Rights.

                  (b) "Principal Party" shall mean:

                           (i)  in the  case  of any  transaction  described  in
         clause (x) or (y) of the first  sentence of Section 13(a)  hereof,  the
         Person that is the issuer of any securities into which shares of Common
         Stock of the Company are converted in such merger or consolidation, and
         if no securities are so issued, the Person, including the Company, that
         is the other party to the merger or consolidation; and

                           (ii) in the  case  of any  transaction  described  in
         clause (z) of the first  sentence of Section 13(a)  hereof,  the Person
         that is the party  receiving  the  greatest  portion  of the  assets or
         earning power transferred pursuant to such transaction or transactions;
         PROVIDED,  HOWEVER, that in any case described in clause (i) or (ii) in
         this  Section  13(b),  (x) if the Common Stock of such Person is not at
         such time and has not been  continuously  over the  preceding  12-month
         period registered under Section 12 of the Exchange Act, and such Person
         is a direct or indirect  Subsidiary  or  Affiliate  of another  Person,
         "Principal  Party" shall refer to such other  Person;  (y) in case such
         Person is a Subsidiary,  directly or  indirectly,  or Affiliate of more
         than one Person, the Common Stocks of all of which are and have been so

                                       20

<PAGE>

         registered,  "Principal Party" shall refer to whichever of such Persons
         is the issuer of the Common Stock having the greatest  aggregate market
         value,  and (z) in  case  such  Person  is,  or is  owned  directly  or
         indirectly  by, a partnership  or joint  venture  formed by two or more
         Persons that are not owned, directly or indirectly, by the same Person,
         the rules set  forth in (x) and (y)  above  shall  apply to each of the
         chains of ownership having an interest in such joint venture as if such
         party were a  "Subsidiary"  of both or all of such joint  venturers and
         the Principal Parties in each such chain shall bear the obligations set
         forth in this  Section 13 in the same ratio as their direct or indirect
         interests in such Person bear to the total of such interests.

                  (c) The Company shall not consummate  any such  consolidation,
merger,  sale or transfer  unless the  Principal  Party shall have a  sufficient
number of shares of its  authorized  Common  Stock which have not been issued or
reserved for issuance to permit the exercise in full of the Rights in accordance
with this  Section 13 and unless  prior  thereto the Company and each  Principal
Party and each other Person who may become a Principal Party as a result of such
consolidation, merger, sale or transfer shall have executed and delivered to the
Rights  Agent a  supplemental  agreement  providing  for the  terms set forth in
paragraphs (a) and (b) of this Section 13 and further providing that, as soon as
practicable  after the date of any  consolidation,  merger,  sale or transfer of
assets  mentioned in paragraph (a) of this Section 13, the Principal  Party will
(if the Company is the Principal  Party,  subject to and after the date on which
the Company comes into compliance with its periodic  filing  requirements  under
SEC rules and regulations):

                           (i) prepare and file a registration  statement  under
         the  Securities  Act with  respect  to the  Rights  and the  securities
         purchasable  upon exercise of the Rights on an appropriate  form,  will
         use its best  efforts to cause such  registration  statement  to become
         effective  as soon as  practicable  after such  filing and will use its
         best efforts to cause such  registration  statement to remain effective
         (with  a  prospectus  at all  times  meeting  the  requirements  of the
         Securities Act) until the Expiration Date;

                           (ii) use its best  efforts to qualify or register the
         Rights and the securities purchasable upon exercise of the Rights under
         the  "blue  sky  laws" of such  jurisdictions  as may be  necessary  or
         appropriate; and

                           (iii)  deliver to  holders  of the Rights  historical
         financial statements for the Principal Party and each of its Affiliates
         which comply in all respects with the  requirements for registration on
         Form 10 under the Exchange Act.

                  The  provisions  of this Section 13 shall  similarly  apply to
successive  mergers or consolidations or sales or other transfers.  In the event
that a  Section  13 Event  shall  occur at any time  after the  occurrence  of a
Section 11(b) Event,  the Rights which have not theretofore been exercised shall
thereafter  also become  exercisable  in the manner  described in Section  13(a)
hereof.

                  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

                                       21

<PAGE>

otherwise  be  issuable,  an amount in cash  equal to the same  fraction  of the
current  market value of a whole Right.  For the purposes of this Section 14(a),
the current  market  value of a whole  Right  shall be the closing  price of the
Rights  for  the  Trading  Day  immediately  prior  to the  date on  which  such
fractional Rights would have been otherwise issuable.  The closing price for any
day shall be the last sale price,  regular  way,  or, in case no such sale takes
place on such day, the average of the closing bid and asked prices, regular way,
in either case as reported in the principal  consolidated  transaction reporting
system with respect to securities  listed or admitted to trading on the New York
Stock  Exchange  or, if the Rights are 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 or admitted to trading on the
principal  national  securities  exchange  on which  the  Rights  are  listed or
admitted  to trading  or, if the Rights are not listed or admitted to trading on
any national securities exchange,  as reported by the Nasdaq National Market or,
if the Rights are not listed or admitted to trading on any  national  securities
exchange or included in the Nasdaq National  Market,  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 Nasdaq or such other system then in use or,
if on any such date the  Rights  are not  quoted by any such  organization,  the
average of the  closing  bid and asked  prices as  furnished  by a  professional
market maker  making a market in the Rights  selected by a majority of the Board
of Directors. If on any such date no such market maker is making a market in the
Rights, the fair value of the Rights on such date as determined in good faith by
a majority of the Board of Directors shall be used.

                  (b) The Company  shall not be required to issue  fractions  of
shares of Preferred Stock (other than fractions which are integral  multiples of
one one-thousandth of a share of Preferred Stock) upon exercise of the Rights or
to distribute  certificates which evidence  fractional shares of Preferred Stock
(other than fractions which are integral  multiples of one  one-thousandth  of a
share of Preferred  Stock).  Fractions of shares of Preferred  Stock in integral
multiples  of one  one-thousandth  of a share of  Preferred  Stock  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 shares of Preferred  Stock  represented by
such depositary  receipts.  In lieu of fractional shares of Preferred Stock that
are not integral  multiples of one one-thousandth of a share of Preferred Stock,
the Company may pay to the registered  holders of Right Certificates at the time
such Right Certificates are exercised as herein provided an amount in cash equal
to the same  fraction of the current  market  value of one  one-thousandth  of a
share of Preferred Stock. For purposes of this Section 14(b), the current market
value  of  one  one-thousandth  of a  share  of  Preferred  Stock  shall  be one
one-thousandth of the closing price of a share of Preferred Stock (as determined
pursuant to Section  11(f)(ii)  hereof) for the Trading Day immediately prior to
the date of such exercise.

                  (c) Following the  occurrence  of one of the  transactions  or
events specified in Section 11 hereof giving rise to the right to receive common
stock  equivalents  (other than Preferred  Stock) or other  securities  upon the
exercise of a Right,  the Company  shall not be required to issue  fractions  of
shares  or units of such  common  stock  equivalents  or other  securities  upon
exercise of the Rights or to distribute  certificates which evidence  fractional
shares  of  such  common  stock  equivalents  or  other  securities.  In lieu of
fractional shares or units of such common stock equivalents or other securities,
the Company may 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

                                       22

<PAGE>

fraction of the  current  market  value of a share or unit of such common  stock
equivalent or other securities.  For purposes of this Section 14(c), the current
market value shall be determined in the manner set forth in Section 11(f) hereof
for the Trading Day immediately  prior to the date of such exercise and, if such
common stock  equivalent is not traded,  each such common stock equivalent shall
have the value of one one-thousandth of a share of Preferred Stock.

                  (d) Except as otherwise expressly provided in this Section 14,
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  share upon
exercise of Rights.

                  Section 15. RIGHTS OF ACTION.  All rights of action in respect
of this Rights Agreement,  except for rights of action given to the Rights Agent
under Section 18 or Section 20 hereof,  are vested in the respective  registered
holders of the Right  Certificates  (and,  prior to the  Distribution  Date, the
registered  holders of Common  Stock);  and any  registered  holder of any Right
Certificate (or, prior to the Distribution  Date, of the Common Stock),  without
the consent of the Rights Agent or of the holder of any other Right  Certificate
(or, prior to the Distribution Date, of the Common Stock), 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 Rights 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 Rights 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 Rights  Agreement.
Holders  of  Rights  shall be  entitled  to  recover  the  reasonable  costs and
expenses,  including  attorneys' fees, incurred by them in any action to enforce
the provisions of this Rights 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  be
transferable only in connection with the transfer of Common Stock;

                  (b) after the  Distribution  Date, the Right  Certificates are
transferable  only on the registry  books of the Rights Agent if  surrendered at
the stockholder  services  office of the Rights Agent or such office  designated
for such  purpose,  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 Stock  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 Stock
certificate  made by anyone other than the Company or the Rights  Agent) for all
purposes  whatsoever,  and neither  the  Company  nor the Rights  Agent shall be
affected by any notice to the contrary.

                                       23

<PAGE>

                  Section 17. RIGHT CERTIFICATE HOLDER NOT DEEMED A STOCKHOLDER.
No holder, as such, of any Right Certificate shall be entitled to vote,  receive
dividends  or be deemed for any purpose the holder of  Preferred  Stock,  Common
Stock or any other  securities  of the Company which may at any time be issuable
on the exercise of the Rights represented  thereby, nor shall anything contained
herein or in any Right Certificate be construed to confer upon the holder of any
Right Certificate, as such, any of the rights of a stockholder of the Company or
any right to vote for the election of directors or upon any matter  submitted to
stockholders  at any  meeting  thereof,  or to give or  withhold  consent to any
corporate  action,  or to receive notice of meetings or other actions  affecting
stockholders  (except as provided in 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.

                  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 Rights
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 gross negligence, bad faith or
willful misconduct on the part of the Rights Agent, for anything done or omitted
by the Rights Agent in connection with the acceptance and administration of this
Rights  Agreement,  including  the costs and expenses of  defending  against any
claim of liability.

                  (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 Rights Agreement in reliance upon any
Right Certificate or certificate for Preferred Stock,  Common Stock or for other
securities  of the Company,  instrument  of  assignment  or  transfer,  power of
attorney,   endorsement,   affidavit,   letter,  notice,   direction,   consent,
certificate,  statement, or other paper or document believed by it to be genuine
and to be signed,  executed and, where necessary,  verified or acknowledged,  by
the proper Person or Persons.

                  Section  19.  MERGER  OR  CONSOLIDATION  OR  CHANGE OF NAME OF
RIGHTS AGENT.

                  (a) Any Person  into which the Rights  Agent or any  successor
Rights Agent may be merged or with which it may be  consolidated,  or any Person
resulting  from any merger or  consolidation  to which the  Rights  Agent or any
successor  Rights  Agent  shall  be a party,  or any  Person  succeeding  to the
corporate trust powers or business or the stock transfer  business of the Rights
Agent or any successor Rights Agent,  shall be the successor to the Rights Agent
under this Rights Agreement  without the execution or filing of any paper or any
further act on the part of any of the parties hereto,  provided that such Person
would be  eligible  for  appointment  as a  successor  Rights  Agent  under  the
provisions of Section 21 hereof. In case at the time such successor Rights Agent
shall succeed to the agency created by this Rights  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

                                       24

<PAGE>

all such cases such Right Certificates shall have the full force provided in the
Right Certificates and in this Rights 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 Rights Agreement.

                  Section  20.  DUTIES  OF  RIGHTS   AGENT.   The  Rights  Agent
undertakes the duties and obligations  imposed by this Rights 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
Rights  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 the Chairman,
President,  Chief Executive Officer,  Chief Financial Officer or any Senior Vice
President and by the  Treasurer or any  Assistant  Treasurer or the Secretary or
any Assistant  Secretary of the Company and  delivered to the Rights Agent;  and
such certificate shall be full  authorization to the Rights Agent for any action
taken or  suffered  in good  faith by it under  the  provisions  of this  Rights
Agreement in reliance upon such certificate.

                  (c) The Rights  Agent shall be liable  hereunder  only for its
own gross negligence, bad faith or willful misconduct.

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

                  (e) The Rights Agent shall not be under any  responsibility in
respect of the validity of this Rights  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  Rights  Agreement  or in any  Right
Certificate;  nor shall it be responsible for any adjustment  required under the
provisions of Sections 11 or 13 hereof or responsible for the manner,  method or
amount of any such adjustment or the ascertaining of the existence of facts that
would require any such adjustment (except with respect to the exercise of Rights

                                       25

<PAGE>

evidenced by Right  Certificates  after actual notice to the Rights Agent of any
such  adjustment);  nor  shall it by any act  hereunder  be  deemed  to make any
representation  or warranty as to the authorization or reservation of any shares
of  Preferred  Stock or other  securities  to be issued  pursuant to this Rights
Agreement  or any Right  Certificate  or as to whether  any shares of  Preferred
Stock or other securities will, when issued,  be validly  authorized and issued,
fully paid and nonassessable.

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

                  (g) The Rights  Agent is hereby  authorized  and  directed  to
accept instructions with respect to the performance of its duties hereunder from
the Chairman,  President,  Chief Executive Officer, Chief Financial Officer, any
Senior Vice President,  the Secretary, any Assistant Secretary, the Treasurer or
any Assistant Treasurer of the Company, and to apply to such officers for advice
or instructions  in connection  with its duties,  and it shall not be liable for
any action taken or suffered to be taken by it in good faith in accordance  with
instructions  of any such officer or for any delay in acting  while  waiting for
those instructions.

                  (h) The Rights Agent and any stockholder,  director,  officer,
employee,  agent or  representative 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 the Rights  Agent  under this  Rights  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 that reasonable care was exercised
in the selection and continued employment thereof.

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

                  (k) If, with respect to any Rights Certificate  surrendered to
the Rights Agent for exercise or transfer,  the certificate attached to the form
of  assignment  or form of election to purchase,  as the case may be, has either
not been  completed or indicates an  affirmative  response to clause 1, clause 2
and/or,  in the case of the  certificate  attached  to the form of  election  to
purchase,  clause 3 thereof,  the Rights Agent shall not take any further action
with respect to such  requested  exercise of transfer  without first  consulting
with the Company.

                                       26

<PAGE>

                  Section 21.  CHANGE OF RIGHTS  AGENT.  The Rights Agent or any
successor  Rights Agent may resign and be discharged  from its duties under this
Rights  Agreement  upon 30 days' notice in writing  mailed to the Company and to
each  transfer  agent of the Common Stock and  Preferred  Stock by registered or
certified  mail,  and to the  holders of the Right  Certificates  by first class
mail.  In the event the  transfer  agency  relationship  in effect  between  the
Company  and the Rights  Agent  terminates,  the Rights  Agent will be deemed to
resign automatically on the effective date of such termination, and any required
notice will be sent by the  Company.  The Company may remove the Rights Agent or
any successor Rights Agent upon 30 days' notice in writing, mailed to the Rights
Agent or successor  Rights Agent, as the case may be, and to each transfer agent
of the Common Stock and Preferred  Stock by registered or certified mail, and to
the  holders of the Right  Certificates  by first  class  mail or,  prior to the
Distribution  Date,  through  any filing  made by the  Company  pursuant  to the
Exchange Act. 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  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 (which holder shall, with such notice,  submit
such  holder's  Right  Certificate  for  inspection  by the  Company),  then the
registered  holder of any Right  Certificate may apply to any court of competent
jurisdiction  for the  appointment of a new Rights Agent.  Any successor  Rights
Agent,  whether  appointed  by the  Company  or by such a court,  shall be (a) a
corporation  or other entity  organized and doing business under the laws of the
United States or of any state, in good standing,  having an office in the States
of New  York or  Florida,  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 (b) an affiliate of a corporation
or other entity described in clause (a) of this sentence. After appointment, the
successor Rights Agent shall be vested with the same powers,  rights, duties and
responsibilities  as if it had been  originally  named as Rights  Agent  without
further act or deed; but the predecessor Rights Agent shall deliver and transfer
to the successor Rights Agent any property at the time held by it hereunder, and
execute and deliver any further assurance, conveyance, act or deed necessary for
the  purpose.  Not later than the  effective  date of any such  appointment  the
Company shall file notice thereof in writing with the  predecessor  Rights Agent
and each  transfer  agent of the Common Stock and  Preferred  Stock,  and mail a
notice  thereof in writing to the registered  holders of the Right  Certificates
or,  prior to the  Distribution  Date,  through  any filing  made by the Company
pursuant to the Securities Exchange Act of 1934, as amended. Failure to give any
notice provided for 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

                  (a)  Notwithstanding  any of the  provisions  of  this  Rights
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 a majority of the Board of Directors then in office to reflect any adjustment
or change  in the  Purchase  Price and the  number or kind or class of shares of
stock or other securities or property  purchasable under the Right  Certificates
made in accordance with the provisions of this Rights Agreement.

                  (b) In addition,  in  connection  with the issuance or sale of
Common  Stock  following  the  Distribution  Date and  prior to the  redemption,
exchange  or  expiration  of the Rights,  the Company (a) shall with  respect to

                                       27

<PAGE>

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

                  Section 23. REDEMPTION AND TERMINATION.

                  (a) A majority of the Board of  Directors  then in office may,
at its option,  at any time prior to the earlier of (i) the Close of Business on
the Stock Acquisition Date or (ii) the Close of Business on the Final Expiration
Date, elect to redeem all but not less than all of the then  outstanding  Rights
at a redemption price of $0.01 per Right, as  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.

                  (b) Immediately  upon the action of a majority of the Board of
Directors then in office electing to redeem the Rights,  evidence of which shall
be promptly filed with the Rights Agent, or, when appropriate,  immediately upon
the time or  satisfaction  of such conditions as the Board of Directors may have
established, 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  disclosure  of any such  redemption;  PROVIDED,  HOWEVER,  that the
failure to give,  or any defect  in,  any such  disclosure  shall not affect the
validity  of such  redemption.  Within 10 days  after the action of the Board of
Directors  ordering the redemption of the Rights,  the Company shall give notice
of such redemption to the holders of the then outstanding Rights by mailing such
notice to all such  holders  at their last  addresses  as they  appear  upon the
registry  books of the Rights Agent or, prior to the  Distribution  Date, on the
registry books of the Transfer  Agent for the Common Stock.  Any notice which is
mailed in the manner herein  provided shall be deemed given,  whether or not the
holder receives the notice. Each such notice of redemption will state the method
by which the payment of the Redemption Price will be made.

                  (c)  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 Stock
prior to the Distribution Date.

                  Section 24. EXCHANGE.

                  (a) The Board of  Directors  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 null and void  pursuant to the  provisions  of Section  7(e)  hereof) for

                                       28

<PAGE>

Common  Stock at an exchange  ratio of  one-half of a share of Common  Stock per
Right,  appropriately  adjusted to reflect  adjustments  in the number of Rights
pursuant  to Section 11 of this  Rights  Agreement  (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 or compensation arrangement of the Company or any such
Subsidiary,  or any  entity  holding  securities  of the  Company  to the extent
organized, appointed or established by the Company or any such Subsidiary for or
pursuant  to the  terms  of any  such  employee  benefit  plan  or  compensation
arrangement),  together  with all  Affiliates  and  Associates  of such  Person,
becomes the Beneficial Owner of 50% or more of the Voting Power of the Company.

                  (b)  Immediately  upon the  action of the  Board of  Directors
ordering the exchange of any Rights pursuant to paragraph (a) of this Section 24
and  without any  further  action and without any notice,  the right to exercise
such Rights shall  terminate  and the only right  thereafter of a holder of such
Rights  shall be to receive  that number of shares of Common  Stock equal to the
number of such Rights held by such holder  multiplied by the Exchange Ratio. The
Company  promptly  shall  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 Common Stock for Rights will be effected and, in
the event of any partial exchange, the number of Rights which will be exchanged.
Any partial  exchange  shall be effected  pro rata based on the number of Rights
(other than Rights which have become void pursuant to the  provisions of Section
7(e) hereof) held by each holder of Rights.

                  (c) In any exchange  pursuant to this Section 24, the Company,
at its option, may substitute Preferred Stock (or equivalent preferred stock, as
such term is defined in Section 11(d) hereof) for Common Stock  exchangeable for
Rights, at the initial rate of one  one-thousandth of a share of Preferred Stock
(or equivalent preferred stock) for each share of Common Stock, as appropriately
adjusted to reflect  adjustments  in the voting  rights of the  Preferred  Stock
pursuant to the terms  thereof,  so that the  fraction  of a share of  Preferred
Stock delivered in lieu of each share of Common Stock shall have the same voting
rights as one share of Common Stock.

                  (d) In the event that there shall not be sufficient  shares of
Common Stock or Preferred Stock (or equivalent  preferred  stock) issued but not
outstanding  or  authorized  but  unissued  to permit any  exchange of Rights as
contemplated in accordance with this Section 24, the Company shall take all such
action as may be  necessary to  authorize  additional  shares of Common Stock or
Preferred  Stock (or equivalent  preferred  stock) for issuance upon exchange of
the Rights.

                  (e) The Company  shall not be required to issue  fractions  of
Common Stock or to distribute  certificates which evidence  fractional shares of
Common Stock.  In lieu of such  fractional  shares of Common Stock,  the Company
shall pay to the  registered  holders of the Right  Certificates  with regard to
which such  fractional  shares of Common  Stock would  otherwise  be issuable an
amount in cash equal to the same fraction of the current market value of a whole
share of Common  Stock.  For the  purposes of this  paragraph  (e),  the current
market  value of a whole share of Common  Stock shall be the closing  price of a

                                       29

<PAGE>

share of Common Stock (as determined  pursuant to the second sentence of Section
11(f)(i)  hereof) for the Trading Day immediately  prior to the date of exchange
pursuant to this Section 24.

Section 25.       NOTICE OF PROPOSED ACTIONS

                  (a) In case the  Company  shall  propose at any time after the
Distribution  Date (i) to pay any dividend  payable in stock of any class to the
holders of the Preferred Stock or to make any other  distribution to the holders
of the  Preferred  Stock  (other than a regular  periodic  cash  dividend out of
earnings or retained  earnings of the Company),  (ii) to offer to the holders of
the  Preferred  Stock  rights or warrants to  subscribe  for or to purchase  any
additional  shares of  Preferred  Stock or shares of stock of any other class or
any other securities, rights or options, (iii) to effect any reclassification of
the  Preferred  Stock  (other  than  a   reclassification   involving  only  the
subdivision  of  outstanding  shares of  Preferred  Stock),  (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 sales 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  Stock  payable in Common
Stock or to effect a  subdivision,  combination or  consolidation  of the Common
Stock (by  reclassification  or otherwise than by payment of dividends in Common
Stock),  then,  in each such case,  the  Company  shall give to each holder of a
Right, in accordance with Section 26 hereof,  a notice of such proposed  action,
which shall  specify the record  date for the  purposes of such stock  dividend,
distribution of rights or warrants, or the date on which such  reclassification,
consolidation,  merger, sale, transfer, liquidation,  dissolution, or winding up
is to take place and the date of  participation  therein  by the  holders of the
Common  Stock  and/or  Preferred  Stock,  if any such date is to be fixed.  Such
notice  shall be so given in the case of any action  covered  by clauses  (i) or
(ii) above at least ten days prior to the record date for determining holders of
the  Preferred  Stock for purposes of such  action,  and in the case of any such
other action, at least ten days prior to the date of the taking of such proposed
action or the date of  participation  therein by the holders of Preferred Stock,
whichever  shall be the  earlier.  The failure to give  notice  required by this
Section 25 or any defect  therein  shall not affect the  legality or validity of
the action taken by the Company or the vote upon any such action.

                  (b) In case a  Section  11(b)  Event  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 shall specify the event and the  consequences of the event to
holders of Rights under Section 11(b) hereof.

                  Section 26.  NOTICES.  Notices or demands  authorized  by this
Rights 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:

                  DHB Industries, Inc.
                  2102 Southwest Second Street
                  Pompano Beach, Florida  33069
                  Attention: General Counsel

                                       30

<PAGE>

Subject to the provisions of Section 21 hereof,  any notice or demand authorized
by this Rights  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:

                  American Stock Transfer & Trust Company
                  59 Maiden Lane, Plaza Level
                  New York, New York  10038
                  Attention:  Executive Vice President

Notices or demands  authorized  by this Rights  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.

                  Section 27.  SUPPLEMENTS AND AMENDMENTS.  The Company may from
time to time supplement or amend this Rights  Agreement  without the approval of
any holders of Right  Certificates  in order (a) to cure any  ambiguity,  (b) to
correct or supplement any provision  contained  herein which may be defective or
inconsistent  with any other provisions  herein,  (c) to shorten or lengthen any
time  period  hereunder  (including  without  limitation  to  extend  the  Final
Expiration  Date), (d) increase or decrease the Purchase Price, or (e) to change
or supplement the provisions  hereunder in any manner which the Company may deem
necessary or desirable;  PROVIDED, HOWEVER, that from and after such time as any
Person becomes an Acquiring  Person,  this Rights Agreement shall not be amended
in any manner  which  would  adversely  affect the  interests  of the holders of
Rights;  PROVIDED  FURTHER that this Rights Agreement may not be supplemented or
amended to lengthen pursuant to clause (c) of this sentence, (A) the time period
relating  to when the Rights may be  redeemed at such time as the Rights are not
then redeemable, or (B) any other time period unless such lengthening is for the
purpose of  protecting,  enhancing  or  clarifying  the  rights  of,  and/or the
benefits to, the holders of the Rights;  PROVIDED FURTHER that the Company shall
have the right to make  unilaterally  any changes  necessary to  facilitate  the
appointment of a successor  Rights Agent,  which such changes shall be set forth
in a writing by the Company or by the Company and such  successor  Rights Agent.
Without  limiting the foregoing,  the Company may at any time prior to such time
as any Person becomes an Acquiring  Person amend this Rights  Agreement to lower
the  thresholds  set forth in Sections 1(a) and 3(a) hereof from 15% to not less
than the greater of (i) any  percentage  greater than the largest  percentage of
the Voting  Power of the Company  then known by the  Company to be  beneficially
owned by any Person (other than the Company,  any Subsidiary of the Company,  or
any employee  benefit  plan or  compensation  arrangement  of the Company or any
Subsidiary of the Company,  and any entity holding  securities of the Company to
the  extent  organized,  appointed  or  established  by the  Company or any such
Subsidiary  for or pursuant to the terms of any such  employee  benefit  plan or
compensation  arrangement)  together with all  Affiliates and Associates of such
Person and (ii) 10%.  Upon the  delivery of a  certificate  from an  appropriate
officer of the Company which states that the proposed supplement or amendment is
in compliance  with the terms of this Section 27, the Rights Agent shall execute
such supplement or amendment.

                  Section 28. PERIODIC  REVIEW AND EVALUATION.  It is understood
that the TIDE  Committee  (as provided  below) of the Board of  Directors  shall
review and evaluate this Rights  Agreement to determine  whether the maintenance
of this Rights  Agreement  continues to be in the interests of the Company,  its
stockholders and any other relevant constituencies of the Company, at least once

                                       31

<PAGE>

every three years,  or sooner than that if any Person shall have made a proposal
to the  Company  or its  stockholders,  or  taken  any  other  action  that,  if
effective,  could cause such  Person to become an  Acquiring  Person  hereunder,
unless a majority of the members of the TIDE Committee shall determine that such
review  and  evaluation  are not  appropriate  after  giving  due  regard to all
relevant  circumstances.  Following  each such review,  the TIDE  Committee will
communicate  its  conclusions  to the full  Board of  Directors,  including  any
recommendation  in light thereof as to whether this Rights  Agreement  should be
modified  or the  Rights  should  be  terminated.  The TIDE  Committee  shall be
comprised of Independent  Directors (as defined below)  selected by the Board of
Directors.  The TIDE Committee shall have the power to set its own agenda and to
retain at the  expense of the Company  its choice of legal  counsel,  investment
banker and/or other  advisors.  The TIDE  Committee  shall have the authority to
review all  information  of the Company  and to consider  any and all factors it
deems  relevant  to an  evaluation  of whether to maintain or modify this Rights
Agreement or to terminate  the Rights.  As used herein,  "Independent  Director"
means a member of the Board of  Directors  of the  Company (i) who is not (A) an
Acquiring  Person or an Affiliate  or Associate of an Acquiring  Person or (B) a
Person who shall have made a proposal  to the  Company or its  stockholders,  or
taken any other action that, if effective,  could cause such Person to become an
Acquiring Person hereunder, or an Affiliate or Associate of any such Person, and
(ii) who is not,  and during the past  three  years has not been,  an officer or
employee of the Company or any Subsidiary of the Company.

                  Section 29.  SUCCESSORS.  All the covenants and  provisions of
this Rights  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 30. BENEFITS OF THIS RIGHTS AGREEMENT. Nothing in this
Rights  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 Stock) any legal or equitable
right,  remedy or claim under this Rights  Agreement;  but this Rights 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 Stock).

                  Section 31. SEVERABILITY.  If any term, provision, covenant or
restriction  of  this  Rights   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 Rights
Agreement shall remain in full force and effect and shall in no way be affected,
impaired or  invalidated.  It is the intent of the parties hereto to enforce the
remainder of the terms,  provisions,  covenants and  restrictions of this Rights
Agreement to the maximum extent permitted by law.

                  Section 32.  GOVERNING  LAW.  This Rights  Agreement  and each
Right  Certificate  issued hereunder shall be deemed to be a contract made under
the laws of the State of Delaware and for all purposes  shall be governed by and
construed in accordance  with the laws of such State  applicable to contracts to
be made and performed entirely within such State.

                  Section  33.  COUNTERPARTS.   This  Rights  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.

                                       32

<PAGE>

                  Section 34. DESCRIPTIVE HEADINGS.  Descriptive headings of the
several  Sections of this Rights Agreement are inserted for convenience only and
shall not control or affect the meaning or construction of any of the provisions
hereof.

Section 35. FORCE MAJEURE.  Notwithstanding  anything to the contrary  contained
herein,  the Rights  Agent  shall not be liable for any  delays or  failures  in
performance resulting from acts beyond its reasonable control including, without
limitation,  acts of God,  terrorist  acts,  shortage of supply,  breakdowns  or
malfunctions,  interruptions or malfunction of computer  facilities,  or loss of
data due to power failures or mechanical  difficulties with information  storage
or retrieval  systems,  labor  difficulties,  war, or civil unrest to the extent
such acts or events are actually beyond the Rights Agent's reasonable control.

                           [Signature page to follow.]

                                       33

<PAGE>

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

Attest:                                   DHB INDUSTRIES, INC.
By______________________________          By____________________________________
Name:___________________________          Name:_________________________________
Title:__________________________          Title:________________________________

Attest:                                   AMERICAN STOCK TRANSFER &
                                          TRUST COMPANY
By______________________________          By____________________________________
Name:___________________________          Name:_________________________________
Title:__________________________          Title:________________________________

<PAGE>

                                                                       EXHIBIT A

                                     FORM OF
         CERTIFICATE OF DESIGNATION, PREFERENCES AND RIGHTS OF SERIES B
                      JUNIOR PARTICIPATING PREFERRED STOCK

                                       OF

                              DHB INDUSTRIES, INC.

            PURSUANT TO SECTION 151(G) OF THE GENERAL CORPORATION LAW
                            OF THE STATE OF DELAWARE

The undersigned,  officers of DHB Industries,  Inc., a corporation organized and
existing  under  the  General  Corporation  Law of the  State of  Delaware  (the
"Company"),  in accordance  with the provisions of Section 151(g)  thereof,  and
being duly authorized, DO HEREBY CERTIFY:

                  That  pursuant to the  authority  conferred  upon the Board of
Directors by the Certificate of Incorporation,  as amended (the  "Certificate"),
of the  Company,  the said Board of  Directors  on October 6, 2006,  adopted the
following  resolution  creating a series of seventy thousand  (70,000) shares of
Preferred Stock designated as Series B Junior Participating Preferred Stock:

                  RESOLVED,  that pursuant to the authority  vested in the Board
of  Directors  of  the  Company  in  accordance   with  the  provisions  of  its
Certificate,  a series of  Preferred  Stock of the  Company  be and it hereby is
created, and that the designation and amount thereof and the powers, preferences
and relative, participating,  optional and other special rights of the shares of
such series, and the qualifications,  limitations or restrictions thereof are as
follows:

                  Section 1. DESIGNATION AND AMOUNT.

                  There shall be a series of the Preferred  Stock which shall be
designated  as the "Series B Junior  Participating  Preferred  Stock," par value
$0.001 per share,  and the number of shares  constituting  such series  shall be
70,000. Such number of shares may be increased or decreased by resolution of the
Board of Directors; provided, that no decrease shall reduce the number of shares
of Series B Junior  Participating  Preferred Stock to a number less than that of
the shares then  outstanding plus the number of shares issuable upon exercise of
outstanding  rights,  options or  warrants  or upon  conversion  of  outstanding
securities issued by the Company.

                  Section 2. DIVIDENDS AND DISTRIBUTIONS.

                  (A)  Subject to the rights of the holders of any shares of any
series of  preferred  stock of the  Company  ranking  prior and  superior to the
Series B Junior  Participating  Preferred  Stock with respect to dividends,  the
holders  of  shares  of  Series  B  Junior  Participating  Preferred  Stock,  in
preference to the holders of shares of Common Stock,  par value $0.001 per share
of the Company (the "Common  Stock"),  and of any other junior  stock,  shall be
entitled to receive,  when,  as and if declared by the Board of Directors out of
funds legally available for the purpose,  quarterly dividends payable in cash on
any regular quarterly dividend payment date as shall be established by the Board
of Directors  (each such date being referred to herein as a "Quarterly  Dividend
Payment Date"),  commencing on the first Quarterly  Dividend  Payment Date after
the  first  issuance  of a share  or  fraction  of a share  of  Series  B Junior

<PAGE>

Participating  Preferred  Stock,  in an amount per share (rounded to the nearest
cent)  equal to the  greater of (a) $1.00 or (b)  subject to the  provision  for
adjustment  hereinafter set forth, 1,000 times the aggregate per share amount of
all cash  dividends,  and 1,000 times the aggregate per share amount (payable in
kind) of all non-cash  dividends or other  distributions,  other than a dividend
payable in shares of Common Stock or a subdivision of the outstanding  shares of
Common Stock (by  reclassification  or otherwise),  declared on the Common Stock
since the immediately preceding Quarterly Dividend Payment Date or, with respect
to the first Quarterly  Dividend  Payment Date,  since the first issuance of any
share or fraction of a share of Series B Junior  Participating  Preferred Stock.
In the event the Company  shall at any time after  October 10, 2006 (the "Rights
Declaration  Date")  declare or pay any dividend on the Common Stock  payable in
shares of Common Stock, or effect a subdivision or combination or  consolidation
of the outstanding shares of Common Stock (by reclassification or otherwise than
by  payment of a dividend  in shares of Common  Stock)  into a greater or lesser
number of shares of  Common  Stock,  then in each such case the  amount to which
holders of shares of Series B Junior Participating Preferred Stock were entitled
immediately prior to such event under clause (b) of the preceding sentence shall
be adjusted by multiplying such amount by a fraction,  the numerator of which is
the number of shares of Common Stock  outstanding  immediately  after such event
and the  denominator  of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

                  (B) The Company  shall declare a dividend or  distribution  on
the Series B Junior  Participating  Preferred Stock as provided in paragraph (A)
of this Section  immediately after it declares a dividend or distribution on the
Common Stock (other than a dividend payable in shares of Common Stock); provided
that, in the event no dividend or  distribution  shall have been declared on the
Common Stock during the period between any Quarterly  Dividend  Payment Date and
the next  subsequent  Quarterly  Dividend  Payment Date, a dividend of $1.00 per
share on the Series B Junior Participating Preferred Stock shall nevertheless be
payable on such subsequent Quarterly Dividend Payment Date.

                  (C)  Dividends  shall  begin to accrue  and be  cumulative  on
outstanding  shares of Series B Junior  Participating  Preferred  Stock from the
Quarterly Dividend Payment Date next preceding the date of issue of such shares,
unless  the date of issue of such  shares  is prior to the  record  date for the
first  Quarterly  Dividend  Payment Date, in which case dividends on such shares
shall begin to accrue from the date of issue of such shares,  or unless the date
of issue is a Quarterly Dividend Payment Date or is a date after the record date
for the  determination  of  holders  of shares of Series B Junior  Participating
Preferred  Stock  entitled  to receive a  quarterly  dividend  and  before  such
Quarterly  Dividend Payment Date, in either of which events such dividends shall
begin to accrue and be cumulative  from such  Quarterly  Dividend  Payment Date.
Accrued but unpaid  dividends  shall not bear  interest.  Dividends  paid on the
shares of Series B Junior  Participating  Preferred Stock in an amount less than
the total  amount of such  dividends  at the time  accrued  and  payable on such
shares  shall be  allocated  pro rata on a  share-by-share  basis among all such
shares at the time  outstanding.  The Board of Directors may, in accordance with
applicable law, fix a record date for the  determination of holders of shares of
Series B Junior  Participating  Preferred Stock entitled to receive payment of a
dividend or distribution  declared thereon,  which record date shall be not more
than such number of days prior to the date fixed for the payment  thereof as may
be allowed by applicable law.

                                       2

<PAGE>

                  Section 3. VOTING RIGHTS.

                  The  holders  of  shares  of  Series  B  Junior  Participating
Preferred Stock shall have the following voting rights:

                  (A) Each  share of  Series  B Junior  Participating  Preferred
Stock shall entitle the holder  thereof to 1,000 votes on all matters  submitted
to a vote of the stockholders of the Company.  In the event the Company shall at
any time after the Rights  Declaration  Date  declare or pay any dividend on the
Common  Stock  payable in shares of Common  Stock,  or effect a  subdivision  or
combination  or  consolidation  of the  outstanding  shares of Common  Stock (by
reclassification  or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common  Stock,  then in each
such  case the  number  of votes to which  holders  of shares of Series B Junior
Participating  Preferred  Stock were  entitled  immediately  prior to such event
under the preceding  sentence shall be adjusted by multiplying  such amount by a
fraction,  the  numerator  of which is the  number of  shares  of  Common  Stock
outstanding  immediately  after such event and the  denominator  of which is the
number of shares of Common Stock that were outstanding immediately prior to such
event.

                  (B) Except as  otherwise  provided  herein,  in the  Company's
Certificate  or by law,  the holders of shares of Series B Junior  Participating
Preferred  Stock,  the  holders of shares of Common  Stock,  and the  holders of
shares of any other capital stock of the Company  having  general voting rights,
shall  vote  together  as  one  class  on all  matters  submitted  to a vote  of
stockholders of the Company.

                  (C) Except as otherwise  set forth herein or in the  Company's
Certificate, and except as otherwise provided by law, holders of Series B Junior
Participating  Preferred  Stock  shall have no special  voting  rights and their
consent  shall not be required  (except to the extent they are  entitled to vote
with  holders of Common  Stock as set forth  herein)  for  taking any  corporate
action.

                  Section 4. CERTAIN RESTRICTIONS.

                  (A) Whenever dividends or distributions  payable on the Series
B Junior Participating  Preferred Stock as provided in Section 2 are in arrears,
thereafter and until all accrued and unpaid dividends and distributions, whether
or not  declared,  on shares of Series B Junior  Participating  Preferred  Stock
outstanding shall have been paid in full, the Company shall not:

                           (i)  declare  or pay  dividends  on,  make any  other
         distributions  on, or redeem  or  purchase  or  otherwise  acquire  for
         consideration  any  shares  of  stock  ranking  junior  (either  as  to
         dividends or upon liquidation, dissolution or winding up) to the Series
         B Junior Participating Preferred Stock;

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

                                       3

<PAGE>

                           (iii) except as permitted in Section  4(A)(iv) below,
         redeem or purchase or otherwise acquire for consideration shares of any
         stock ranking on a parity (either as to dividends or upon  liquidation,
         dissolution  or  winding  up)  with the  Series B Junior  Participating
         Preferred  Stock,  provided  that the Company  may at any time  redeem,
         purchase  or  otherwise  acquire  shares  of any such  parity  stock in
         exchange for shares of any stock of the Company  ranking junior (either
         as to dividends or upon dissolution,  liquidation or winding up) to the
         Series B Junior Participating Preferred Stock; and

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

                  (B) The Company shall not permit any subsidiary of the Company
to purchase or otherwise  acquire for  consideration  any shares of stock of the
Company  unless  the  Company  could,  under  paragraph  (A) of this  Section 4,
purchase or otherwise acquire such shares at such time and in such manner.

                  Section 5. REACQUIRED SHARES.

                  Any shares of Series B Junior  Participating  Preferred  Stock
purchased or otherwise acquired by the Company in any manner whatsoever shall be
retired and canceled promptly after the acquisition  thereof.  The Company shall
cause all such shares upon their  cancellation  to be  authorized  but  unissued
shares of  Preferred  Stock  which may be  reissued  as part of a new  series of
Preferred  Stock,  subject to the  conditions and  restrictions  on issuance set
forth herein.

                  Section 6. LIQUIDATION, DISSOLUTION OR WINDING UP.

                  (A)  Subject to the rights of the holders of any shares of any
series of  Preferred  Stock of the  Company  ranking  prior and  superior to the
Series B Junior Participating Preferred Stock with respect to liquidation,  upon
any  liquidation  (voluntary  or  otherwise),  dissolution  or winding up of the
Company, no distribution shall be made to the holders of shares of stock ranking
junior (either as to dividends or upon  liquidation,  dissolution or winding up)
to the Series B Junior Participating  Preferred Stock unless, prior thereto, the
holders of shares of Series B Junior  Participating  Preferred  Stock shall have
received  $1,000.00  per  share,  plus an amount  equal to  accrued  and  unpaid
dividends and  distributions  thereon,  whether or not declared,  to the date of
such payment (the "Series A Liquidation  Preference").  Following the payment of
the  full  amount  of  the  Series  A  Liquidation  Preference,   no  additional
distributions  shall  be made to the  holders  of  shares  of  Series  B  Junior
Participating  Preferred Stock,  unless, prior thereto, the holders of shares of
Common Stock shall have  received an amount per share (the "Common  Adjustment")
equal  to the  quotient  obtained  by  dividing  (i) the  Series  A  Liquidation
Preference by (ii) 1,000 (as appropriately adjusted as set forth in subparagraph
C  below  to  reflect  such  events  as  stock  dividends,   and   subdivisions,
combinations and  consolidations  with respect to the Common Stock) (such number
in clause (ii) being  referred to as the  "Adjustment  Number").  Following  the
payment of the full amount of the Series A Liquidation Preference and the Common

                                       4

<PAGE>

Adjustment in respect of all outstanding shares of Series B Junior Participating
Preferred  Stock and  Common  Stock,  respectively,  holders  of Series B Junior
Participating  Preferred  Stock and  holders  of shares  of Common  Stock  shall
receive their  ratable and  proportionate  share of the  remaining  assets to be
distributed  in the ratio of the  Adjustment  Number to 1 with  respect  to such
Series B Junior  Participating  Preferred Stock and Common Stock, on a per share
basis, respectively.

                  (B) In the event there are not sufficient  assets available to
permit  payment  in  full  of  the  Series  A  Liquidation  Preference  and  the
liquidation  preferences of all other series of preferred  stock,  if any, which
rank on a parity with the Series B Junior  Participating  Preferred Stock,  then
such remaining assets shall be distributed ratably to the holders of such parity
shares in proportion to their respective liquidation  preferences.  In the event
there are not  sufficient  assets  available  to permit  payment  in full of the
Common  Adjustment,  then such remaining assets shall be distributed  ratably to
the holders of Common Stock.

                  (C) In the  event  the  Company  shall at any time  after  the
Rights  Declaration  Date declare or pay any dividend on Common Stock payable in
shares of Common Stock, or effect a subdivision or combination or  consolidation
of the outstanding shares of Common Stock (by reclassification or otherwise than
by  payment of a dividend  in shares of Common  Stock)  into a greater or lesser
number of shares of Common Stock,  then in each such case the Adjustment  Number
in effect  immediately prior to such event shall be adjusted by multiplying such
Adjustment  Number by a fraction the  numerator of which is the number of shares
of Common Stock outstanding  immediately after such event and the denominator of
which is the number of shares of Common Stock that were outstanding  immediately
prior to such event.

                  Section 7. CONSOLIDATION, MERGER, ETC.

                  In case  the  Company  shall  enter  into  any  consolidation,
merger, combination or other transaction in which the shares of Common Stock are
exchanged for or changed into other stock or  securities,  cash and/or any other
property,  then in any such case the  shares  of  Series B Junior  Participating
Preferred  Stock shall at the same time be similarly  exchanged or changed in an
amount per share (subject to the provision for adjustment hereinafter set forth)
equal to 1,000 times the aggregate amount of stock, securities,  cash and/or any
other  property  (payable in kind),  as the case may be, into which or for which
each share of Common  Stock is changed or  exchanged.  In the event the  Company
shall at any time after the Rights  Declaration Date declare or pay any dividend
on Common Stock  payable in shares of Common Stock,  or effect a subdivision  or
combination  or  consolidation  of the  outstanding  shares of Common  Stock (by
reclassification  or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common  Stock,  then in each
such case the amount set forth in the  preceding  sentence  with  respect to the
exchange or change of shares of Series B Junior  Participating  Preferred  Stock
shall be adjusted by  multiplying  such amount by a fraction  the  numerator  of
which is the number of shares of Common Stock outstanding immediately after such
event and the  denominator of which is the number of shares of Common Stock that
are outstanding immediately prior to such event.

                  Section 8. REDEMPTION.

                  The shares of Series B Junior  Participating  Preferred  Stock
shall not be redeemable.

                                       5

<PAGE>

                  Section 9. RANKING.

                  The Series B Junior  Participating  Preferred Stock shall rank
junior to all other series of the Company's Preferred Stock as to the payment of
dividends and the  distribution  of assets,  unless the terms of any such series
shall provide otherwise.

                  Section 10. FRACTIONAL SHARES.

                  Series B Junior Participating Preferred Stock may be issued in
fractions  of a share which shall  entitle the  holder,  in  proportion  to such
holder's  fractional  shares,  to exercise  voting  rights,  receive  dividends,
participate  in  distributions  and to have the  benefit of all other  rights of
holders of Series B Junior Participating Preferred Stock."

                  IN WITNESS  WHEREOF,  we have  executed  and  subscribed  this
Certificate  and do affirm the  foregoing as true under the penalties of perjury
this 12th day of October, 2006.

                                          By          __________________________
                                          Name:
                                          Title:

                                          By        ____________________________
                                          Name:
                                          Title:

                                       6

<PAGE>

                                                                       EXHIBIT B

                           [FORM OF RIGHT CERTIFICATE]

         Certificate No. R __________________________    _____________Rights

  NOT EXERCISABLE AFTER THE EXPIRATION DATE. AT THE OPTION OF THE COMPANY, THE
   RIGHTS ARE SUBJECT TO REDEMPTION AT $0.01 PER RIGHT OR EXCHANGE FOR COMMON
     STOCK, UNDER THE CIRCUMSTANCES AND ON THE TERMS SET FORTH IN THE RIGHTS
     AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN
  ACQUIRING PERSON OR AN ASSOCIATE OR AFFILIATE OF AN ACQUIRING PERSON AND ANY
     SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID. [THE RIGHTS
    REPRESENTED BY THIS RIGHT CERTIFICATE WERE ISSUED TO A PERSON WHO WAS AN
 ACQUIRING PERSON OR AN AFFILIATE OR AN ASSOCIATE OF AN ACQUIRING PERSON.
 THIS RIGHT CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY ARE VOID IN THE
    CIRCUMSTANCES SPECIFIED IN SECTION 7(E) OF THE RIGHTS AGREEMENT.][(1) ]

                                Right Certificate

                              DHB INDUSTRIES, INC.

                  This certifies  that_____________,  or registered  assigns, is
the  registered  owner of the  number of Rights set forth  above,  each of which
entitles the owner thereof,  subject to the terms,  provisions and conditions of
the  Rights  Agreement  dated as of  October  6, 2006 (the  "Rights  Agreement")
between DHB  Industries,  Inc.,  a Delaware  corporation  (the  "Company"),  and
American  Stock Transfer & Trust Company,  a New York  corporation  (the "Rights
Agent"),  to purchase from the Company at any time after the  Distribution  Date
(as such term is defined in the Rights Agreement) and prior to 5:00 p.m. Pompano
Beach,  Florida  time on the  Expiration  Date,  as that term is  defined in the
Rights Agreement,  at the stockholder services office (or such office designated
for such  purpose) of the Rights Agent,  or its  successor as Rights Agent,  one
one-thousandth  of a fully  paid,  nonassessable  share  of the  Series B Junior
Participating  Preferred Stock, par value $0.001 per share ("Preferred  Stock"),
of the  Company,  at a purchase  price of $_______ per one  one-thousandth  of a
share (the  "Purchase  Price")  upon  presentation  and  surrender of this Right
Certificate  with the Form of Election to Purchase duly executed.  The number of
Rights  evidenced by this Right  Certificate (and the number of shares which may
be  purchased  upon  exercise  of each Right) and the  Purchase  Price set forth
above,  are the number and  Purchase  Price as of  _______________  based on the
shares of Preferred Stock of the Company as constituted at such date.

_____________________________________
["  THE PORTION OF THE LEGEND IN BRACKETS SHALL BE INSERTED ONLY IF APPLICABLE.}

<PAGE>

                  The Purchase Price and the number of shares of Preferred Stock
which may be purchased upon the exercise of each of the Rights evidenced by this
Right  Certificate are subject to modification and adjustment upon the happening
of certain events as provided in the Rights Agreement.

                  This  Right  Certificate  is  subject  to all  of  the  terms,
provisions and conditions of the Rights Agreement,  which terms,  provisions and
conditions  are hereby  incorporated  herein by reference and made a part hereof
and to which Rights Agreement reference is hereby made for a full description of
the rights, limitations of rights, obligations,  duties and immunities hereunder
of the Rights  Agent,  the Company  and the  holders of the Right  Certificates.
Copies  of  the  Rights   Agreement   are  on  file  at  the   Company  and  the
above-mentioned  office of the Rights Agent and are also  available upon written
request to the Company.

                  This  Right   Certificate,   with  or  without   other   Right
Certificates,  upon surrender at the stockholder services office (or such office
designated  for such purpose) of the Rights Agent,  may be exchanged for another
Right Certificate or Right Certificates of like tenor and date evidencing Rights
entitling the holder to purchase a like aggregate  number of shares of Preferred
Stock as the Rights  evidenced by the Right  Certificate  or Right  Certificates
surrendered  shall  have  entitled  such  holder  to  purchase.  If  this  Right
Certificate shall be exercised in part, the holder shall be entitled to receive,
upon surrender hereof,  another Right Certificate or Right  Certificates for the
number of whole Rights not exercised.

                  Subject to the provisions of the Rights Agreement,  the Rights
evidenced by this  Certificate may be redeemed by the Company at its option at a
redemption  price of $0.01 per Right on or prior to the Stock  Acquisition  Date
(as defined in the Rights Agreement). In addition,  subject to the provisions of
the Rights Agreement,  each Right evidenced by this Certificate may be exchanged
by the Company at its option for one-half of a share of Common  Stock  following
the Stock  Acquisition Date and prior to the time an Acquiring  Person,  as that
term is defined in the Rights  Agreement,  owns 50% or more of the Voting Power,
as that term is defined in the Rights Agreement, of the Company.

                  No  fractional  shares of Preferred  Stock will be issued upon
the exercise of any Rights  evidenced  hereby  (other than  fractions  which are
integral  multiples of one  one-thousandth of a share of Preferred Stock,  which
may, at the election of the Company,  be evidenced by depositary  receipts).  In
lieu of  fractions of a share,  a cash payment will be made,  as provided in the
Rights Agreement.

                  No holder of this Right  Certificate shall be entitled to vote
or  receive  dividends  or be deemed  for any  purpose  the  holder of shares of
Preferred Stock or of any other  securities of the Company which may at any time
be issuable on the exercise hereof,  nor shall anything  contained in the Rights
Agreement or herein be construed to confer upon the holder hereof,  as such, any
of the  rights  of a  stockholder  of the  Company  or any right to vote for the
election  of  directors  or upon any matter  submitted  to  stockholders  at any
meeting thereof,  or to give or withhold consent to any corporate  action, or to
receive notice of meetings or other actions  affecting  stockholders  (except as
provided  in the Rights  Agreement),  or to receive  dividends  or  subscription
rights, or otherwise, until the Rights evidenced by this Right Certificate shall
have been exercised as provided in the Rights Agreement.

                                       2

<PAGE>

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

                  WITNESS the facsimile  signature of the proper officers of the
Company and its corporate seal.

Dated as of ________________.

Attest:                                   DHB INDUSTRIES, INC.
By________________________________        By____________________________________
Name:_____________________________        Name:_________________________________
Title:____________________________        Title:________________________________

Countersigned:

[_________________].

By:______________________________________________
Authorized signature

                                       3
<PAGE>

                   [FORM OF REVERSE SIDE OF RIGHT CERTIFICATE]

                               FORM OF ASSIGNMENT

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

                  FOR VALUE RECEIVED____________________________________________
hereby sells, assigns and transfers unto

________________________________________________________________________________
                  (Please print name and address of transferee)

________________________________________________________________________________

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

Dated:
      __________________________

                                    ____________________________________________
                                    Signature

                                    (Signature  must  conform in all respects to
                                     name of holder as specified on the face of
                                     this Right Certificate)

Signature Guaranteed:

                  Signatures  must be guaranteed by a member or a participant in
the Securities  Transfer Agent  Medallion  Program,  the New York Stock Exchange
Medallion Signature Program or the Stock Exchange Medallion Program.

                                       4
<PAGE>

                                   CERTIFICATE

                  The undersigned  hereby  certifies by checking the appropriate
boxes that:

                  (1)  this  Right  Certificate  [ ] is [ ] is not  being  sold,
assigned and  transferred by or on behalf of a Person who is or was an Acquiring
Person or an Affiliate or Associate of any such Acquiring  Person (as such terms
are defined pursuant to the Rights Agreement);

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

Dated:______________________________     _______________________________________
                                         Signature

                                         (Signature must conform in all respects
                                          to name of holder as specified on the
                                          face of this Right Certificate)

                                       5
<PAGE>

                          FORM OF ELECTION TO PURCHASE

                      (To be executed if holder desires to
                        exercise the Right Certificate.)

To DHB INDUSTRIES, INC.:

                  The  undersigned   hereby   irrevocably   elects  to  exercise
________________Rights  represented  by this Right  Certificate  to purchase the
shares of Preferred Stock issuable upon the exercise of such Rights and requests
that certificates for such shares be issued in the name of:

                  Name:
                  Address:_____________________________
                          _____________________________

                  Social security
                  or taxpayer identification
                  number:______________________________

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

                  Name:
                  Address:_____________________________
                          _____________________________

                  Social security
                  or taxpayer identification
                  number:______________________________

Dated:
      _______________________________

                                       ______________________________________
                                       Signature

                                       (Signature  must  conform in all respects
                                        to name of holder as specified on the
                                        face of this Right Certificate)

Signature Guaranteed:

                  Signatures  must be guaranteed by a member or a participant in
the Securities  Transfer Agent  Medallion  Program,  the New York Stock Exchange
Medallion Signature Program or the Stock Exchange Medallion Program.

                                       6
<PAGE>

                                   CERTIFICATE

                  The undersigned  hereby  certifies by checking the appropriate
boxes that:

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

                  (2) this  Rights  Certificate  [ ] is [ ] is not  being  sold,
assigned and  transferred by or on behalf of a Person who is or was an Acquiring
Person or an Affiliate or Associate of any such Acquiring  Person (as such terms
are defined pursuant to the Rights Agreement);

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

Dated:
      _______________________________

                                       _________________________________________
                                       Signature

                                       (Signature  must  conform in all respects
                                        to name of holder as specified on the
                                        face of this Right Certificate)

                                     NOTICE

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

                  In the event the  certification set forth above in the form of
Assignment  or the form of  Election  to  Purchase,  as the case may be,  is not
completed,  the Company and the Rights Agent will deem the  beneficial  owner of
the Rights  evidenced by this Right  Certificate to be an Acquiring Person or an
Affiliate or  Associate  thereof (as defined in the Rights  Agreement)  and such
Assignment  or Election to Purchase  will not be honored as described in Section
7(e) of the Rights Agreement.

                                       7
<PAGE>

                                                                       EXHIBIT C

                              DHB INDUSTRIES, INC.

                           SUMMARY OF PREFERRED STOCK
                                 PURCHASE RIGHTS

                  On October 6, 2006, the Board of Directors of DHB  Industries,
Inc. (the  "Company")  declared a dividend of one preferred share purchase right
(a "Right") for each  outstanding  share of Common  Stock,  par value $0.001 per
share, of the Company (the "Common Stock"). The dividend distribution is payable
on October 10, 2006 (the  "Record  Date") to the  stockholders  of record at the
close of business on that date.  Each Right  entitles the  registered  holder to
purchase  from the  Company  one  one-thousandth  of a share of  Series B Junior
Participating  Preferred  Stock,  par value  $0.001  per share  (the  "Preferred
Stock") of the Company at a price of $15.00 per one one-thousandth of a share of
Preferred Stock (the "Purchase Price"),  subject to adjustment.  The description
and terms of the Rights are set forth in a Rights  Agreement dated as of October
6, 2006, as the same may be amended from time to time (the "Rights  Agreement"),
between the Company and American Stock Transfer & Trust Company, as Rights Agent
(the "Rights Agent").

                  Until the earlier to occur of (i) the close of business on the
tenth  business day  following  the date of public  announcement  or the date on
which the  Company  first has  notice  or  determines  that a person or group of
affiliated or associated persons (other than the Company,  any subsidiary of the
Company or any employee benefit plan of the Company,  or certain  "grandfathered
persons" described below) (an "Acquiring Person") has acquired,  or obtained the
right to acquire,  15% or more of the outstanding  shares of voting stock of the
Company without the prior written  consent of the Company  executed on behalf of
the  Company by a duly  authorized  officer  of the  Company  following  express
approval  by  action  of at least a  majority  of the  members  of the  Board of
Directors  then in office  (the "Stock  Acquisition  Date") or (ii) the close of
business on the tenth  business day (or such later date as may be  determined by
action of the Board of Directors but not later than the Stock  Acquisition Date)
following  the  commencement  of a tender offer or exchange  offer,  without the
prior written consent of the Company,  by a person (other than the Company,  any
subsidiary  of the Company or an employee  benefit plan of the  Company)  which,
upon  consummation,  would result in such party's  control of 15% or more of the
Company's  voting  stock  (the  earlier of the dates in clause (i) or (ii) above
being  called the  "Distribution  Date"),  the Rights  will be  evidenced,  with
respect to any of the Common  Stock  certificates  outstanding  as of the Record
Date, by such Common Stock certificates. For purposes of the Rights Agreement, a
"grandfathered  person" is a person  who, as of the close of business on October
10, 2006, together with all affiliates and associates,  was the beneficial owner
of more  than 15% of the  outstanding  shares of  voting  stock of the  Company;
provided,  that such person together with all affiliates and associates does not
increase its or their percentage  ownership of the outstanding  shares of voting
stock of the  Company by more than one (1)  percentage  point  without the prior
written consent of the Company.

                  The Rights  Agreement  provides that,  until the  Distribution
Date (or earlier  redemption or  expiration  of the Rights),  the Rights will be
transferred  with  and  only  with  the  Company's   Common  Stock.   Until  the
Distribution Date (or earlier redemption, exchange or expiration of the Rights),
new Common Stock certificates  issued after the Record Date upon transfer or new

<PAGE>

issuances  of Common  Stock  will  contain a notation  incorporating  the Rights
Agreement by  reference.  Until the  Distribution  Date (or earlier  redemption,
exchange  or  expiration  of the  Rights),  the  surrender  for  transfer of any
certificates for shares of Common Stock  outstanding as of the Record Date, even
without such notation or a copy of this Summary of Rights,  will also constitute
the transfer of the Rights  associated with the Common Stock represented by such
certificate.  As soon as practicable  following the Distribution Date,  separate
certificates  evidencing  the Rights  ("Right  Certificates")  will be mailed to
holders  of  record  of the  Common  Stock as of the  close of  business  on the
Distribution  Date and such separate  certificates  alone will then evidence the
Rights.

                  The Rights are not exercisable  until the  Distribution  Date.
The Rights will expire,  if not previously  exercised,  on October 10, 2016 (the
"Final Expiration Date"), unless the Final Expiration Date is extended or unless
the Rights are earlier redeemed or exchanged by the Company.

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

                  The  number  of  outstanding  Rights  and  the  number  of one
one-thousandths  of a share of Preferred  Stock  issuable  upon exercise of each
Right are also subject to adjustment in the event of a stock split of the Common
Stock or a stock  dividend on the Common Stock payable in shares of Common Stock
or subdivisions,  consolidations  or combinations of the Common Stock occurring,
in any such case, prior to the Distribution Date.

                  Shares of Preferred  Stock  purchasable  upon  exercise of the
Rights  will not be  redeemable  and  will be  junior  to any  other  series  of
preferred stock the Company may issue (unless otherwise provided in the terms of
such stock). Each share of Preferred Stock will have a preferential  dividend in
an amount  equal to 1,000  times any  dividend  declared on each share of Common
Stock.  In the event of  liquidation,  the holders of the  Preferred  Stock will
receive a  preferred  liquidation  payment of equal to the greater of $1,000 and
1,000 times the payment made per share of Common Stock.  Each share of Preferred
Stock will have 1,000 votes, voting together with the Common Stock. In the event
of any merger,  consolidation  or other  transaction  in which  shares of Common
Stock are converted or exchanged, each share of Preferred Stock will be entitled
to receive 1,000 times the amount and type of  consideration  received per share
of Common Stock. The rights of the Preferred Stock as to dividends,  liquidation
and voting,  and in the event of mergers and  consolidations,  are  protected by
customary antidilution provisions.

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

                                       2

<PAGE>

                  If any person or group (other than the Company, any subsidiary
of  the  Company  or  any  employee  benefit  plan  of the  Company  or  certain
grandfathered  persons) acquires 15% or more of the Company's outstanding voting
stock without the prior written  consent of the Board of Directors,  each Right,
except  those held by such  persons,  would  entitle  each  holder of a Right to
acquire such number of shares of the  Company's  Common Stock as shall equal the
result obtained by multiplying the then current  Purchase Price by the number of
one  one-thousandths  of a share of  Preferred  Stock  for which a Right is then
exercisable  and  dividing  that  product by 50% of the then  current  per share
market price of Company Common Stock. The exercise of the Rights is also subject
to suspension under certain  circumstances to enable the Company to register the
shares being issued upon exercise  under the Securities Act of 1933, as amended.
The Company is not currently able to file a registration  statement as it is not
in  compliance  with its  periodic  filing  requirements  under  Securities  and
Exchange Commission rules and regulations.

                  If any person or group (other than the Company, any subsidiary
of  the  Company  or  any  employee  benefit  plan  of the  Company  or  certain
grandfathered  persons)  acquires  more  than  15%  but  less  than  50%  of the
outstanding  Company Common Stock without prior written  consent of the Board of
Directors,  each Right,  except those held by such persons,  may be exchanged by
the Board of Directors for one-half of a share of Company Common Stock.

                  If the Company  were  acquired  in a merger or other  business
combination  transaction  where the Company is not the surviving  corporation or
where  Company  Common  Stock  is  exchanged  or  changed  or 50% or more of the
Company's  assets  or  earnings  power  is sold in one or  several  transactions
without the prior written  consent of the Board of  Directors,  each Right would
entitle the holders  thereof  (except for the Acquiring  Person) to receive such
number of shares of the  acquiring  company's  common stock as shall be equal to
the result obtained by multiplying the then current Purchase Price by the number
one  one-thousandths  of a share of  Preferred  Stock  for which a Right is then
exercisable  and dividing  that product by 50% of the then current  market price
per  share of the  common  stock of the  acquiring  company  on the date of such
merger or other business combination transaction.

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

                  At any  time  prior to the time an  Acquiring  Person  becomes
such, the Board of Directors of the Company may redeem the Rights in whole,  but
not in  part,  at a price of $0.01  per  Right  (the  "Redemption  Price").  The
redemption  of the Rights may be made  effective at such time, on such basis and
with  such  conditions  as the Board of  Directors  in its sole  discretion  may
establish.  Immediately upon any redemption of the Rights, the right to exercise
the Rights will terminate and the only right of the holders of Rights will be to
receive the Redemption Price.

                  The  terms  of the  Rights  may be  amended  by the  Board  of
Directors  of the  Company  without  the  consent of the  holders of the Rights,
including,  but not  limited  to,  an  amendment  to  lower  certain  thresholds
described above to not less than the greater of (i) any percentage  greater than
the largest percentage of the voting power of all securities of the Company then

                                       3

<PAGE>

known  to the  Company  to be  beneficially  owned  by any  person  or  group of
affiliated or associated  persons (other than an excepted  person) and (ii) 10%,
except  that from and after  such time as any person or group of  affiliated  or
associated  persons becomes an Acquiring  Person no such amendment may adversely
affect the interests of the holders of the Rights.

                  A committee of  independent  directors  will review the Rights
Agreement  at least  every  three years and, if a majority of the members of the
committee deems it  appropriate,  may recommend a modification or termination of
the Rights Agreement.

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

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

                                       4

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