Document:

EX-4.1

 Exhibit 4.1 

 
  

CEC Entertainment, Inc. 
 and 

Computershare Trust 
 Company, N.A.

 Rights Agreement 

Dated as of January 15, 2014 
  

 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	 Page
	 
			
	 Section 1.
	 	Definitions	  	 	1	  
			
	 Section 2.
	 	Appointment of Rights Agent	  	 	9	  
			
	 Section 3.
	 	Issue of Right Certificates	  	 	10	  
			
	 Section 4.
	 	Form of Right Certificates	  	 	13	  
			
	 Section 5.
	 	Countersignature and Registration	  	 	13	  
			
	 Section 6.
	 	Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates	  	 	14	  
			
	 Section 7.
	 	Exercise of Rights; Purchase Price; Expiration Date of Rights	  	 	16	  
			
	 Section 8.
	 	Cancellation and Destruction of Right Certificates	  	 	19	  
			
	 Section 9.
	 	Availability of Preferred Shares	  	 	19	  
			
	 Section 10.
	 	Preferred Shares Record Date	  	 	20	  
			
	 Section 11.
	 	Adjustment of Purchase Price, Number of Shares or Number of Rights	  	 	21	  
			
	 Section 12.
	 	Certificate of Adjusted Purchase Price or Number of Shares	  	 	33	  
			
	 Section 13.
	 	Consolidation, Merger or Sale or Transfer of Assets or Earning Power	  	 	33	  
			
	 Section 14.
	 	Fractional Rights and Fractional Shares	  	 	35	  
			
	 Section 15.
	 	Rights of Action	  	 	37	  
			
	 Section 16.
	 	Agreement of Right Holders	  	 	38	  
			
	 Section 17.
	 	Right Certificate Holder Not Deemed a Stockholder	  	 	39	  
			
	 Section 18.
	 	Concerning the Rights Agent	  	 	39	  
			
	 Section 19.
	 	Merger or Consolidation or Change of Name of Rights Agent	  	 	41	  
			
	 Section 20.
	 	Duties of Rights Agent	  	 	42	  
			
	 Section 21.
	 	Change of Rights Agent	  	 	46	  

  
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	 	 	 	  	 Page
	 
			
	 Section 22.
	 	Issuance of New Right Certificates	  	 	47	  
			
	 Section 23.
	 	Redemption	  	 	48	  
			
	 Section 24.
	 	Exchange	  	 	49	  
			
	 Section 25.
	 	Notice of Certain Events	  	 	51	  
			
	 Section 26.
	 	Notices	  	 	52	  
			
	 Section 27.
	 	Supplements and Amendments	  	 	53	  
			
	 Section 28.
	 	Successors	  	 	54	  
			
	 Section 29.
	 	Benefits of this Agreement	  	 	54	  
			
	 Section 30.
	 	Severability	  	 	54	  
			
	 Section 31.
	 	Governing Law	  	 	55	  
			
	 Section 32.
	 	Counterparts	  	 	55	  
			
	 Section 33.
	 	Descriptive Headings	  	 	55	  
			
	 Section 34.
	 	Customer Identification Program	  	 	55	  
			
	 Section 35.
	 	Force Majeure	  	 	56	  
			
	 Section 36.
	 	Treatment of Rights at the Acceptance Time or the Effective Time	  	 	56	  

  

					
	Exhibit A	 	—  	  	Form of Certificate of Designations
			
	Exhibit B	 	—  	  	Form of Right Certificate
			
	Exhibit C	 	—  	  	Summary of Rights to Purchase Preferred Shares

  
 -ii- 

 Rights Agreement, dated as of January 15, 2014, between CEC Entertainment Inc., a Kansas
corporation (the “Company”), and Computershare Trust Company, N.A., as rights agent (the “Rights Agent”). 

The Board of Directors of the Company has authorized and declared a dividend of one preferred share purchase right (a
“Right”) for each Common Share (as hereinafter defined) of the Company outstanding on January 26, 2014 (the “Record Date”), each Right representing the right to purchase one ten-thousandth of a Preferred Share
(as hereinafter defined), upon the terms and subject to the conditions herein set forth, and has further authorized and directed the issuance of one Right with respect to each Common Share that shall become outstanding between the Record Date and
the earliest of the Distribution Date, the Redemption Date and the Final Expiration Date (as such terms are hereinafter defined). 

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

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

(a) “Acquiring Person” shall mean any Person who or which, together with all Affiliates and Associates of such Person, shall
be the Beneficial Owner of 10% or more of the Common Shares of the Company then outstanding, but shall not include the Company, any Subsidiary of the Company, any employee benefit plan of the Company or any Subsidiary of the Company, or any entity
holding Common Shares for or pursuant to the terms of any such plan. Notwithstanding the foregoing, no Person who Beneficially Owns, each as of the time of the first public announcement of the declaration of the Rights dividend, 10% or more of the
Common Shares of the Company then outstanding shall become an Acquiring Person unless such Person 

  
 A-1 

 
shall, after the time of the public announcement of the declaration of the Rights dividend, increase its Beneficial Ownership of the then-outstanding Common Shares (other than as a result of an
acquisition of Common Shares by the Company) to an amount equal to or greater than the sum of (i) the lowest Beneficial Ownership of such Person as a percentage of the outstanding Common Shares as of any time from and after the time of the
public announcement of the declaration of the Rights dividend plus (ii) 0.001%. Notwithstanding the foregoing, no Person shall become an “Acquiring Person” as the result of an acquisition of Common Shares by the Company which, by
reducing the number of Common Shares of the Company outstanding, increases the proportionate number of Common Shares of the Company Beneficially Owned by such Person to 10% or more of the Common Shares of the Company then outstanding;
provided, however, that, if a Person shall become the Beneficial Owner of 10% or more of the Common Shares of the Company then outstanding by reason of share purchases by the Company and shall, after the public announcement of such
share purchases by the Company, become the Beneficial Owner of any additional Common Shares of the Company, then such Person shall be deemed to be an “Acquiring Person.” Notwithstanding the foregoing, if the Board of Directors of the
Company determines in good faith that a Person who would otherwise be an “Acquiring Person,” as defined pursuant to the foregoing provisions of this paragraph (a), has become such inadvertently, and such Person divests as promptly as
practicable a sufficient number of Common Shares so that such Person would no longer be an “Acquiring Person,” as defined pursuant to the foregoing provisions of this paragraph (a), then such Person shall not be deemed to be an
“Acquiring Person” for any purposes of this Agreement. Notwithstanding the foregoing, if a bona fide swaps dealer who would otherwise be an “Acquiring Person” has become so as a result of its actions in the ordinary course of its
business that the Board of Directors of the Company determines, in its sole discretion, were taken without 

  
 A-2 

 
the intent or effect of evading or assisting any other Person to evade the purposes and intent of this Agreement, or otherwise seeking to control or influence the management or policies of the
Company, then, and unless and until the Board of Directors shall otherwise determine, such Person shall not be deemed to be an “Acquiring Person” for any purposes of this Agreement. Anything in this Section 1(a) or this Agreement to
the contrary notwithstanding, none of Queso Holdings, Inc., a Delaware corporation (“Parent”), Q Merger Sub Inc., a Kansas corporation and a wholly-owned subsidiary of Parent (“Merger Sub”) or any of their
respective Affiliates or Associates, is, nor shall any of them be deemed to be, an “Acquiring Person” by virtue of (i) the execution of, or their entry into, the Agreement and Plan of Merger, to be dated as of January 15, 2014 by
and among the Company, Parent and Merger Sub (as it may be amended from time to time, the “Merger Agreement”); (ii) the execution of, or their entry into, any other contract or instrument in connection with the Merger
Agreement; (iii) their acquisition or their right to acquire, beneficial ownership of Common Stock as a result of their execution of the Merger Agreement; or (iv) the commencement or consummation of the Offer (as defined in the Merger
Agreement) or the consummation of the Merger (as defined in the Merger Agreement), in each case in accordance with, pursuant to, and on the terms and subject to the conditions set forth in the Merger Agreement; it being the purpose of the Company
that the execution of the Merger Agreement by any of the parties thereto (after giving effect to any amendment to the Merger Agreement entered into by the Company) nor the consummation of the transactions contemplated thereby, in each case in
accordance with, pursuant to and upon the terms and conditions of the Merger Agreement, shall in any respect give rise to any provision of this Agreement becoming effective. 

  
 A-3 

 (b) “Affiliate” shall have the meaning ascribed to such term in Rule 12b-2 of the General Rules and Regulations under the Exchange Act as in effect on the date of this Agreement. 

(c) “Associate” shall have the meaning ascribed to such term in Rule 12b-2 of the
General Rules and Regulations under the Exchange Act as in effect on the date of this Agreement. 
 (d) A Person shall be deemed the
“Beneficial Owner” of and shall be deemed to “Beneficially Own” any securities: 
 (i)
which such Person or any of such Person’s Affiliates or Associates beneficially owns, directly or indirectly; 
 (ii)
which such Person or any of such Person’s Affiliates or Associates has (A) the right or the obligation to acquire (whether such right is exercisable, or such obligation is required to be performed, 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, or to Beneficially Own, securities tendered pursuant
to a tender or exchange offer made by or on behalf of such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for purchase or exchange; or (B) the right to vote pursuant to any agreement,
arrangement or understanding; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to Beneficially Own, any security if the agreement, arrangement or 

  
 A-4 

 
understanding to vote such security (1) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or consent solicitation made pursuant to, and in
accordance with, the applicable rules and regulations promulgated under the Exchange Act and (2) is not also then reportable on Schedule 13D under the Exchange Act (or any comparable or successor report); 

(iii) which are beneficially owned, directly or indirectly, by any other Person with which such Person or any of such
Person’s Affiliates or Associates has any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities)
for the purpose of acquiring, holding, voting (except to the extent contemplated by the proviso to Section 1(d)(ii)(B) hereof) or disposing of any securities of the Company; or 

(iv) which are beneficially owned, directly or indirectly, by a Counterparty (or any of such Counterparty’s Affiliates or
Associates) under any Derivatives Contract (without regard to any short or similar position under the same or any other Derivatives Contract) to which such Person or any of such Person’s Affiliates or Associates is a Receiving Party (as such
terms are defined in the immediately following paragraph); provided, however, that the number of Common Shares that a Person is deemed to Beneficially Own pursuant to this clause (iv) in connection with a particular Derivatives
Contract shall not exceed the number of Notional Common Shares with respect to such Derivatives Contract; provided, further, that the number of securities beneficially owned by each Counterparty (including its Affiliates and
Associates) under a Derivatives Contract shall for purposes of this clause (iv) be deemed to include all 

  
 A-5 

 
securities that are beneficially owned, directly or indirectly, by any other Counterparty (or any of such other Counterparty’s Affiliates or Associates) under any Derivatives Contract to
which such first Counterparty (or any of such first Counterparty’s Affiliates or Associates) is a Receiving Party, with this proviso being applied to successive Counterparties as appropriate. 

A “Derivatives Contract” is a contract between two parties (the “Receiving Party” and the
“Counterparty”) that is designed to produce economic benefits and risks to the Receiving Party that correspond substantially to the ownership by the Receiving Party of a number of Common Shares specified or referenced in such
contract (the number corresponding to such economic benefits and risks, the “Notional Common Shares”), regardless of whether obligations under such contract are required or permitted to be settled through the delivery of cash,
Common Shares or other property, without regard to any short position under the same or any other Derivatives Contract. For the avoidance of doubt, interests in broad-based index options, broad-based index futures and broad-based publicly traded
market baskets of stocks approved for trading by the appropriate federal governmental authority shall not be deemed to be Derivatives Contracts. 

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 are
issuable by the Company and which such Person would be deemed to Beneficially Own hereunder. 

  
 A-6 

 (e) “Book Entry” shall mean an uncertificated book entry for any Common Share or
Preferred Share. 
 (f) “Business Day” shall mean any day other than a Saturday, a Sunday, or a day on which banking
institutions in State of New York are authorized or obligated by law or executive order to close. 
 (g) “Close of Business”
on any given date shall mean 5:00 P.M., New York, New York time, on such date; provided, however, that, if such date is not a Business Day, it shall mean 5:00 P.M., New York, New York time, on the next succeeding Business Day. 

(h) “Common Shares” when used with reference to the Company shall mean the shares of common stock, par value $0.10 per share,
of the Company. “Common Shares” when used with reference to any Person other than the Company shall mean the capital stock (or equity interest) with the greatest voting power of such other Person or, if such other Person is a Subsidiary of
another Person, the Person or Persons which ultimately control such first-mentioned Person. 
 (i)
“Customer Identification Program” shall have the meaning set forth in Section 34 hereof. 
 (j) “Distribution
Date” shall have the meaning set forth in Section 3(a) hereof. 
 (k) “Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended. 
 (l) “Exchange Ratio” shall have the meaning set forth in Section 24(a) hereof.

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

(n) “Merger Agreement” shall have the meaning set forth in Section 1 hereof. 

  
 A-7 

 (o) “Merger Sub” shall have the meaning set forth in Section 1 hereof. 

(p) “NASDAQ” shall mean the National Association of Securities Dealers, Inc. Automated Quotation System. 

(q) “Ownership Statements” means, with respect to any Book Entry Common Share, current ownership statements issued to the
record holders thereof in lieu of a certificate representing such Common Share. 
 (r) “Parent” shall have the meaning set
forth in Section 1 hereof. 
 (s) “Person” shall mean any individual, partnership, firm, corporation, limited liability
company, association, trust, limited liability partnership, joint venture, unincorporated organization or other entity, and shall include any successor (by merger or otherwise) of such entity, as well as any group under Rule 13d-5(b)(1) of the
Exchange Act. 
 (t) “Preferred Shares” shall mean shares of Series B Junior Participating Preferred Stock, par value $100
per share, of the Company having the rights and preferences set forth in the Form of Certificate of Designations attached to this Agreement as Exhibit A. 

(u) “Purchase Price” shall have the meaning set forth in Section 4 hereof. 

(v) “Record Date” shall have the meaning set forth in the second paragraph hereof. 

(w) “Redemption Date” shall have the meaning set forth in Section 7(a) hereof. 

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

(y) “Right” shall have the meaning set forth in the second paragraph hereof. 

  
 A-8 

 (z) “Right Certificate” shall have the meaning set forth in Section 3(a)
hereof. 
 (aa) “Shares Acquisition Date” shall mean the first date of public announcement by the Company or an Acquiring
Person that an Acquiring Person has become such. The foregoing or any provision to the contrary in this Agreement notwithstanding, a Shares Acquisition Date shall not occur or be deemed to have occurred as a result of the approval, execution,
delivery or performance of the Merger Agreement or the announcement or consummation of the transactions contemplated thereby, in accordance with, pursuant to and upon the terms and conditions of the Merger Agreement. 

(bb) “Subsidiary” of any Person shall mean any corporation or other entity of which a majority of the voting power of the
voting equity securities or equity interest is owned, directly or indirectly, by such Person. 
 (cc) “Summary of Rights”
shall have the meaning set forth in Section 3(b) hereof. 
 (dd) “Trading Day” shall have the meaning set forth in
Section 11(d) hereof. 
 Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as
agent for the Company in accordance with the express terms and conditions (and no implied 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 shall in no event be liable for
the acts or omissions of any such co-Rights Agent. 

  
 A-9 

 Section 3. Issue of Right Certificates . (a) Until the tenth (10th) day after the Shares Acquisition Date (including any such date which is after the date of this Agreement and prior to the issuance of the Rights; the “Distribution Date”),
(x) the Rights will be evidenced (subject to the provisions of Section 3(b) hereof) by the certificates for Common Shares of the Company (or by Book Entry Common Shares of the Company) registered in the names of the holders thereof (which
certificates shall also be deemed to be Right Certificates) and not by separate Right Certificates or book entry, and (y) the right to receive Right Certificates will be transferable only in connection with the transfer of Common Shares of the
Company. The foregoing or any provision to the contrary in this Agreement notwithstanding, a Distribution Date shall not occur or be deemed to have occurred as a result of the approval, execution, delivery or performance of the Merger Agreement or
the announcement or consummation of the transactions contemplated thereby, in each case in accordance with, pursuant to and upon the terms and conditions of the Merger Agreement. As soon as practicable after the Distribution Date, the Company will
prepare and execute, and upon written request of the Company, the Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if requested and provided with all necessary information and documents at the
expense of the Company, send) by first-class, insured, postage-prepaid mail, to each record holder of Common Shares of the Company as of the Close of Business on the
Distribution Date (other than any Acquiring Person or any Associate or Affiliate of an Acquiring Person), at the address of such holder shown on the records of the Company, a Right Certificate, in substantially the form of Exhibit B hereto (a
“Right Certificate”), evidencing one Right for each Common Share so held, subject to adjustment as provided herein. As of the Distribution Date, the Rights will be evidenced solely by such Right Certificates. The Company shall
promptly notify the Rights Agent in writing 

  
 A-10 

 
upon the occurrence of the Distribution Date, the Redemption Date and/or the Final Expiration Date and, if such notification is given orally, the Company shall confirm same in writing on or prior
to the Business Day next following. Until such written notice is received by the Rights Agent, the Rights Agent may presume conclusively for all purposes that none of the Distribution Date, the Redemption Date or the Final Expiration Date has
occurred. 
 (b) On the Record Date, or as soon as practicable thereafter, the Company will send (directly, or at the expense of the Company,
upon the written request of the Company and after providing all necessary information and documents, through the Rights Agent or the Company’s transfer agent for the Common Shares) a copy of a Summary of Rights to Purchase Preferred Shares, in
substantially the form of Exhibit C hereto (the “Summary of Rights”), by first-class, postage-prepaid mail, to each record holder of Common Shares as of
the Close of Business on the Record Date (other than any Acquiring Person or any Associate or Affiliate of an Acquiring Person), at the address of such holder shown on the records of the Company. With respect to certificates for Common Shares of the
Company or Book Entry Common Shares of the Company outstanding as of the Record Date, until the Distribution Date, the Rights will be evidenced by such certificates registered in the names of the holders thereof together with a copy of the Summary
of Rights attached thereto. Until the Distribution Date (or the earlier of the Redemption Date or the Final Expiration Date), the surrender for transfer of any certificate for Common Shares or the transfer of any Book Entry Common Shares of the
Company outstanding on the Record Date, with or without a copy of the Summary of Rights attached thereto, shall also constitute the transfer of the Rights associated with the Common Shares of the Company represented thereby. 

  
 A-11 

 (c) Certificates for Common Shares (or Book Entry Common Shares) which become outstanding
(including, without limitation, reacquired Common Shares referred to in the last sentence of this paragraph (c)) after the Record Date but prior to the earliest of the Distribution Date, the Redemption Date or the Final Expiration Date shall have
impressed on, printed on, written on or otherwise affixed to them a legend in substantially the following form: 
 This certificate also
evidences and entitles the holder hereof to certain rights as set forth in an Agreement between CEC Entertainment, Inc. and Computershare Trust Company, N.A., dated as of January 15, 2014, as it may be amended from time to time (the
“Agreement”), the terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal executive offices of CEC Entertainment, Inc. Under certain circumstances, as set forth in the Agreement,
such Rights (as defined in the Agreement) will be evidenced by separate certificates and will no longer be evidenced by this certificate. CEC Entertainment, Inc. will mail to the holder of this certificate a copy of the Agreement without charge
after receipt of a written request therefor. As set forth in the Agreement, Rights that are or were acquired or Beneficially Owned by any Person (as defined in the Agreement) who becomes an Acquiring Person (as defined in the Agreement) or an
Associate or Affiliate thereof (each as defined in the Agreement) become null and void and non-transferable. 
 With respect to any Book Entry Common Shares
of the Company, such legend shall be included in the Ownership Statement in respect of such Common Share or in a notice to the record holder of such Common Share in accordance with applicable law. With respect to such certificates containing the
foregoing legend, or any notice containing the foregoing legend delivered to holders of Book Entry Common Share, until the earliest of the Distribution Date, the Rights associated with the Common Shares of the Company represented by such
certificates shall be evidenced by such certificates or such Book Entry Common Shares (including any Ownership Statement) alone, and the surrender for transfer of any such certificate or the transfer of any Book Entry Common Share shall also
constitute the transfer of the Rights associated with the Common Shares of the Company represented thereby. In the event that the Company purchases or acquires any Common Shares of the Company after the Record Date but prior to the Distribution
Date, any 

  
 A-12 

 
Rights associated with such Common Shares of the Company shall be deemed cancelled and retired so that the Company shall not be entitled to exercise any Rights associated with the Common Shares
of the Company which are no longer outstanding. Notwithstanding this Section 3(c), the omission of a legend shall not affect the enforceability of any part of this Rights Agreement or the rights of any holder of the Rights. 

Section 4. Form of Right Certificates. The Right Certificates (and the forms of election to purchase Preferred Shares and of
assignment to be printed on the reverse thereof) shall be substantially the same 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 (but which do not materially and adversely affect the rights, duties, liabilities or responsibilities of the Rights Agent) and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any
applicable law or with any applicable rule or regulation made pursuant thereto or with any applicable rule or regulation of any stock exchange or the Financial Industry Regulatory Authority, or to conform to usage. Subject to the provisions of
Section 22 hereof, the Right Certificates shall entitle the holders thereof to purchase such number of one ten-thousandth of a Preferred Share as shall be set forth therein at the price per one ten-thousandth of a Preferred Share set forth
therein (the “Purchase Price”), but the number of such one ten-thousandth of a Preferred Share and the Purchase Price shall be subject to adjustment as provided herein. 

Section 5. Countersignature and Registration. The Right Certificates shall be executed on behalf of the Company by its Chairman of
the Board, its Chief Executive Officer, its President, any of its Vice Presidents or its Treasurer, either manually or by facsimile signature, shall have affixed thereto the Company’s seal or a facsimile thereof, and shall be attested by the

  
 A-13 

 
Secretary or an Assistant Secretary of the Company, either manually or by facsimile signature. The Right Certificates shall be countersigned, either manually or by facsimile signature, by the
Rights Agent and shall not be valid for any purpose unless countersigned. In case any officer of the Company who shall have signed any of the Right Certificates shall cease to be such officer of the Company before countersignature by the Rights
Agent and issuance and delivery by the Company, such Right Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as though the individual who signed such Right
Certificates had not ceased to be such officer of the Company; and any Right Certificate may be signed on behalf of the Company by any individual 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 Agreement any such individual was not such an officer. 

Following the Distribution Date, receipt by the Rights Agent of notice to that effect and all other relevant information and documents
referred to in Section 3(a), the Rights Agent will keep or cause to be kept, at its principal office, books for registration and transfer of the Right Certificates issued hereunder. Such books shall show the names and addresses of the
respective holders of the Right Certificates, the number of Rights evidenced on its face by each of the Right Certificates 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. Subject to the provisions of Section 14 hereof, at any time after the Close of Business on the Distribution Date, and at or prior to the Close of Business on the earlier of the Redemption Date or the Final Expiration Date, any
Right Certificate or Right Certificates (other than Right Certificates representing Rights that have 

  
 A-14 

 
become null and void pursuant to Section 11(a)(ii) hereof or that have been exchanged pursuant to Section 24 hereof) may be transferred, split up, combined or exchanged for another
Right Certificate or Right Certificates entitling the registered holder to purchase a like number of one ten-thousandth of a Preferred Share as the Right Certificate or Right Certificates surrendered then entitled such holder to purchase. Any
registered holder desiring to transfer, split up, combine or exchange any Right Certificate or Right Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender the Right Certificate or Right Certificates to be
transferred, split up, combined or exchanged at the principal office of the Rights Agent. The Right Certificates are transferrable only on the registry books of the Rights Agent. Neither the Rights Agent nor the Company shall be obligated to take
any action whatsoever with respect to the transfer of any such surrendered Right Certificate until the registered holder shall have properly completed and duly executed the certificate contained in the form of assignment on the reverse side of such
Right Certificate, shall have provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) thereof and of the Rights evidenced thereby and the Affiliates and Associates of such Beneficial Owner (or former
Beneficial Owner) thereof as the Company or the Rights Agent shall reasonably request and paid a sum sufficient to cover any tax or charge that may be imposed in connection with any transfer, split up, combination or exchange of Right Certificates
as required hereunder. 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, registered in such name or names as may be designated by
the surrendering registered holder. The Company may require payment of a sum sufficient to cover any tax or charge that may be imposed in connection with any transfer, split up, combination or exchange of Right Certificates. The Rights Agent shall
promptly forward any such sum collected by it to the 

  
 A-15 

 
Company or to such Persons as the Company shall specify by written notice. The Rights Agent shall have no duty or obligation under any Section of this Agreement that requires the payment of taxes
or charges unless and until it is satisfied that all such taxes and/or charges have been paid. 
 Upon receipt by the Company and the Rights
Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Right Certificate, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, and, at the Company’s
request, reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Right Certificate if mutilated, the Company will issue, execute and deliver a
new Right Certificate of like tenor to the Rights Agent for countersignature and delivery to the registered holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated. 

Notwithstanding any other provisions hereof, the Company and the Rights Agent may amend this Rights Agreement to provide for uncertificated
Rights in addition to or in place of Rights evidenced by Rights Certificates. 
 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 properly completed and duly executed, to the Rights Agent at the principal office of the Rights Agent, together with payment of the Purchase Price for each one
ten-thousandth of a Preferred Share as to which the Rights are exercised, at or prior to the earliest of (i) the Close of Business on January 14, 2015 (the “Final Expiration Date”), (ii) the time at which the Rights
are redeemed as provided in Section 23 hereof (the “Redemption Date”), (iii) the time at which such Rights are 

  
 A-16 

 
exchanged as provided in Section 24 hereof, or (iv) immediately prior to the earlier to occur of the Acceptance Time and the Effective Time (each as defined in the Merger Agreement).
From such time as the Rights are no longer exercisable hereunder, the Rights Agent shall have no further duties, obligations or liabilities hereunder except as expressly stated herein. The Company shall promptly notify the Rights Agent in writing
upon the occurrence of the Acceptance Time and/or the Effective Time and, if such notification is given orally, the Company shall confirm the same in writing on or prior to the Business Day next following. Until such written notice is received by
the Rights Agent, the Rights Agent may presume conclusively for all purposes that neither the Acceptance Time nor the Effective Time have occurred. 

(b) The Purchase Price for each one ten-thousandth of a Preferred Share purchasable pursuant to the exercise of a Right shall initially be
$54.00, and shall be subject to adjustment from time to time as provided in Section 11 or 13 hereof, and shall be payable in lawful money of the United States of America in accordance with paragraph (c) below. 

(c) Upon receipt of a Right Certificate representing exercisable Rights, with the form of election to purchase properly completed and duly
executed, accompanied by payment of the Purchase Price for the shares to be purchased and an amount equal to any applicable transfer tax required to be paid by the holder of such Right Certificate in accordance with Section 9 hereof by cash or
by certified check, cashier’s check or money order payable to the order of the Company, the Rights Agent shall thereupon promptly (i) (A) requisition from any transfer agent of the Preferred Shares (or make available if the Rights
Agent is the Transfer Agent) certificates for the number of Preferred Shares to be purchased and the Company hereby irrevocably authorizes any such transfer agent to comply with all such requests, or (B) requisition from the depositary agent
depositary receipts representing such number of one ten-thousandth of a Preferred Share as are to be purchased (in which case certificates for the Preferred Shares represented by such receipts shall be deposited by the transfer agent of the
Preferred Shares with such depositary agent) and the Company hereby directs such depositary agent to comply with such request; (ii) 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; (iii) after receipt of such certificates or depositary receipts, 

  
 A-17 

 
cause the same to be delivered to or upon the order of the registered holder of such Right Certificate, registered in such name or names as may be designated by such holder; and (iv) when
appropriate, after receipt, deliver such cash to or upon the order of the registered holder of such Right Certificate. In the event that the Company is obligated to issue securities of the Company other than Preferred Shares (including Common
Shares) of the Company pursuant to Section 11(a) hereof, the Company will make all arrangements necessary so that such other securities are available for distribution by the Rights Agent. 

(d) Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake any
action with respect to a registered holder of Rights or other securities upon the occurrence of any purported transfer or exercise as set forth in Section 6 hereof or this Section 7 unless such registered holder shall have
(i) properly completed and duly executed the certification following the form of election to purchase set forth on the reverse side of the Right Certificate surrendered for such transfer or exercise, (ii) tendered the Purchase Price (and
an amount equal to any applicable transfer tax required to be paid by the holder of such Right Certificate in accordance with Section 9) to the Company in the manner set forth in Section 7(c), and (iii) provided such additional
evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company or the Rights Agent shall reasonably request. 

(e) 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. 

  
 A-18 

 Section 8. Cancellation and Destruction of Right Certificates. All Right Certificates
surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the Rights Agent for cancellation or in cancelled form, or, if delivered or
surrendered to the Rights Agent, shall be cancelled by it, and no Right Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Company shall deliver to the Rights Agent for
cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Right Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all cancelled Right Certificates
to the Company, or shall, at the written request of the Company, destroy such cancelled Right Certificates, and, in such case, shall deliver a certificate of destruction thereof to the Company. 

Section 9. Availability of Preferred Shares. The Company covenants and agrees that it will cause to be reserved and kept available
out of its authorized and unissued Preferred Shares or any Preferred Shares held in its treasury the number of Preferred Shares that will be sufficient to permit the exercise in full of all outstanding Rights in accordance with Section 7
hereof. The Company covenants and agrees that it will take all such action as may be necessary to ensure that all Preferred Shares (or Common Shares and other securities as the case may be) delivered upon exercise of Rights shall, at the time of
delivery of the certificates for such Preferred Shares (or Common Shares and other securities, as the case may be) (subject to payment of the Purchase Price), be duly and validly authorized and issued and fully paid and nonassessable shares. 

  
 A-19 

 The Company further covenants and agrees that it will pay when due and payable any and all
federal and state transfer taxes and charges that may be payable in respect of the issuance or delivery of the Right Certificates or of any Preferred Shares upon the exercise of Rights. The Company shall not, however, be required to pay any transfer
tax that may be payable in respect of any transfer or delivery of Right Certificates to a Person other than, or the issuance or delivery of certificates or depositary receipts for the Preferred Shares in a name other than that of, the registered
holder of the Right Certificate evidencing Rights surrendered for exercise or to issue or to deliver any certificates or depositary receipts for Preferred Shares upon the exercise of any Rights until any such tax shall have been paid (any such tax
being payable by the holder of such Right Certificate at the time of surrender) or until it has been established to the Company’s reasonable satisfaction that no such tax is due. 

Section 10. Preferred Shares Record Date. Each Person in whose name any certificate for Preferred Shares 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 Shares 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 with the forms of election and certification properly completed and duly executed 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 Shares or other securities transfer books of the Company are closed, such Person shall be deemed to have become the record holder of such shares on,
and such certificate shall be dated, the next succeeding Business Day on which the Preferred Shares 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 holder of Preferred 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. 

  
 A-20 

 Section 11. Adjustment of Purchase Price, Number of Shares or Number of Rights. The
Purchase Price, the number of Preferred 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) (i) In the event the Company shall at any time after the date of this Agreement (A) declare a dividend on the
Preferred Shares payable in Preferred Shares, (B) subdivide the outstanding Preferred Shares, (C) combine the outstanding Preferred Shares into a smaller number of Preferred Shares or (D) issue any shares of its capital stock in a
reclassification of the Preferred Shares (including any such reclassification in connection with a share exchange, consolidation or merger in which the Company is the continuing or surviving corporation), except as otherwise provided in this
Section 11(a), the Purchase Price in effect at the time of the record date for such dividend or of the effective date of such subdivision, combination or reclassification, and the number and kind of shares of capital stock issuable on such
date, shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled to receive the aggregate number and kind of shares of capital stock which, if such Right had been exercised immediately prior to such
date and at a time when the Preferred Shares transfer books of the Company were open, such holder would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification;
provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of one Right. 

  
 A-21 

 (ii) Subject to Section 24 hereof, in the event any Person becomes an
Acquiring Person, each holder of a Right shall thereafter have a right to receive, upon exercise thereof at a price equal to the then current Purchase Price multiplied by the number of one ten-thousandth of a Preferred Share for which a Right is
then exercisable, in accordance with the terms of this Agreement and in lieu of Preferred Shares, such number of Common Shares of the Company as shall equal the result obtained by (A) multiplying the then current Purchase Price by the number of
one ten-thousandth of a Preferred Share for which a Right is then exercisable and dividing that product by (B) 50% of the then current per share market price of the Common Shares of the Company (determined pursuant to Section 11(d) hereof)
on the date of the occurrence of such event. In the event that any Person shall become an Acquiring Person and the Rights shall then be outstanding, the Company shall not take any action which would eliminate or diminish the benefits intended to be
afforded by the Rights. 
 From and after the occurrence of such event, any Rights that are or were acquired or Beneficially
Owned by any Acquiring Person (or any Associate or Affiliate of such Acquiring Person) shall be null and void without any further action, and any holder of such Rights shall thereafter have no right to exercise such Rights under any provision of
this Agreement or otherwise. Neither the Company nor the Rights Agent shall have liability to any holder of Right Certificates or other Person as a result of the Company’s or the Rights Agent’s failure to make any determinations with
respect to an Acquiring Person or its Affiliates, Associates or transferees hereunder. No Right Certificate shall be issued pursuant to Section 3 hereof that represents Rights Beneficially Owned by an Acquiring Person whose Rights would be null
and void pursuant to the preceding sentence or any Associate or Affiliate thereof; no Right Certificate shall be issued at any time upon the transfer of any Rights to an Acquiring Person whose Rights would be null and void pursuant to the preceding
sentence or any 

  
 A-22 

 
Associate or Affiliate thereof or to any nominee of such Acquiring Person, Associate or Affiliate or with respect to any Common Shares otherwise deemed to be Beneficially Owned by any of the
foregoing; and any Right Certificate delivered to the Rights Agent for transfer to an Acquiring Person or other Person whose Rights would be null and void pursuant to the preceding sentence shall be cancelled. The Company shall give the Rights Agent
written notice of the identity of any such Acquiring Person, Associate or Affiliate, or the nominee of any of the foregoing, and the Rights Agent may rely on such written notice in carrying out its duties under this Agreement and shall be deemed not
to have any knowledge of the identity of any such Acquiring Person, Associate or Affiliate, or the nominee of any of the foregoing, unless and until it shall have received such written notice. 

(iii) In the event that there shall not be sufficient Common Shares issued but not outstanding or authorized but unissued
(excluding Common Shares reserved for issuance upon exercise of the Top-Up Option (as defined in the Merger Agreement)) to permit the exercise in full of the Rights in accordance with subparagraph (ii) above, the Company shall take all such
action as may be necessary to authorize additional Common Shares for issuance upon exercise of the Rights. In the event the Company shall, after good faith effort, be unable to take all such action as may be necessary to authorize such additional
Common Shares, the Company shall substitute, for each Common Share that would otherwise be issuable upon exercise of a Right, a number of Preferred Shares or fraction thereof such that the current per share market price of one Preferred Share
multiplied by such number or fraction is equal to the current per share market price of one Common Share as of the date of issuance of such Preferred Shares or fraction thereof. 

  
 A-23 

 (b) In case the Company shall fix a record date for the issuance of rights,
options or warrants to all holders of Preferred Shares entitling them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Preferred Shares (or shares having the same rights, privileges and preferences
as the Preferred Shares (“equivalent preferred shares”)) or securities convertible into Preferred Shares or equivalent preferred shares at a price per Preferred Share or equivalent preferred share (or having a conversion price per
share, if a security convertible into Preferred Shares or equivalent preferred shares) less than the then current per share market price of the Preferred Shares (as defined in Section 11(d)) on such record date, the Purchase Price to be in
effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the number of Preferred Shares outstanding on such record date plus
the number of Preferred Shares which the aggregate offering price of the total number of Preferred Shares and/or equivalent preferred shares so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be
offered) would purchase at such current market price and the denominator of which shall be the number of Preferred Shares outstanding on such record date plus the number of additional Preferred Shares and/or equivalent preferred shares to be offered
for subscription or purchase (or into which the convertible securities so to be offered are initially convertible); provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the
aggregate par value of the shares of capital stock of the Company issuable upon exercise of one 

  
 A-24 

 
Right. In case such subscription price may be paid in a consideration part or all of which shall be in a form other than cash, the value of such consideration shall be as determined in good faith
by the Board of Directors of the Company, whose determination shall be described in a written statement filed with the Rights Agent and shall be binding on the Rights Agent and holders of the Rights. Preferred Shares owned by or held for the account
of the Company or any Subsidiary of the Company shall not be deemed outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is fixed; and, in the event that such rights, options or
warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed. 

(c) In case the Company shall fix a record date for the making of a distribution to all holders of the Preferred Shares
(including any such distribution made in connection with a share exchange, consolidation or merger in which the Company is the continuing or surviving corporation) of evidences of indebtedness or assets (other than a regular quarterly cash dividend
or a dividend payable in Preferred Shares) or subscription rights or warrants (excluding those referred to in Section 11(b) hereof), the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price
in effect immediately prior to such record date by a fraction, the numerator of which shall be the then-current per share market price of the Preferred Shares on such record date, less the fair market value (as determined in good faith by the Board
of Directors of the Company, whose determination shall be described in a written statement filed with the Rights Agent and shall be binding on the Rights Agent and holders of the Rights) of the portion of the assets or evidences of indebtedness so
to be distributed or of such 

  
 A-25 

 
subscription rights or warrants applicable to one Preferred Share and the denominator of which shall be such then-current per share market price of the Preferred Shares on such record date;
provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company to be issued upon exercise of one Right. Such
adjustments shall be made successively whenever such a record date is fixed; and, in the event that such distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase Price which would then be in effect if such record
date had not been fixed. 
 (d) (i) For the purpose of any computation hereunder, the “current per share market
price” of any security (a “Security” for the purpose of this Section 11(d)(i)) on any date shall be deemed to be the average of the daily closing prices per share of such Security for the 30 consecutive Trading Days
immediately prior to but not including such date; provided, however, that, in the event that the current per share market price of the Security is determined during a period following the announcement by the issuer of such Security of
(A) a dividend or distribution on such Security payable in shares of such Security or Securities convertible into such shares, or (B) any subdivision, combination or reclassification of such Security and prior to but not including the
expiration of 30 Trading Days after but not including 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 per share market price shall be appropriately adjusted to reflect the current market price per share equivalent of such Security. The closing price for each day shall be the last sale price, regular way, reported at or prior to
4:00 P.M. Eastern time or, in case no such sale takes place on such day, the average of the bid and asked prices, regular way, 

  
 A-26 

 
reported as of 4:00 P.M. Eastern time, in either case, as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the New
York Stock Exchange or, if the Security is not listed or admitted to trading on the New York Stock Exchange, as reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national
securities exchange on which the Security is listed or admitted to trading or, if the Security is not listed or admitted to trading on any national securities exchange, the last quoted price reported at or prior to 4:00 P.M. Eastern time or, if not
so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported as of 4:00 P.M. Eastern time 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 the Board of Directors of
the Company. The term “Trading Day” shall mean a day on which the principal national securities exchange on which the Security is listed or admitted to trading is open for the transaction of business, or, if the Security is not
listed or admitted to trading on any national securities exchange, a Business Day. 
 (ii) For the purpose of any
computation hereunder, the “current per share market price” of the Preferred Shares shall be determined in accordance with the method set forth in Section 11(d)(i). If the Preferred Shares are not publicly traded, the “current
per share market price” of the Preferred Shares shall be conclusively deemed to be the current per share market price of the Common Shares as determined pursuant to Section 11(d)(i) hereof (appropriately adjusted to reflect any stock
split, stock dividend or similar transaction occurring after the date hereof), multiplied by ten thousand. If neither 

  
 A-27 

 
the Common Shares nor the Preferred Shares are publicly held or so listed or traded, “current per share market price” shall mean the fair value per share as determined in good faith by
the Board of Directors of the Company, whose determination shall be described in a written statement filed with the Rights Agent. 

(e) No adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at
least 1% in the Purchase Price; provided, however, that any adjustments which by reason of this Section 11(e) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All
calculations under this Section 11 shall be made to the nearest cent or to the nearest one hundred-millionth of a Preferred Share or one hundred-thousandth of any other share or security as the case may
be. Notwithstanding the first sentence of this Section 11(e), any adjustment required by this Section 11 shall be made no later than the earlier of (i) three years from the date of the transaction which requires such adjustment or
(ii) the date of the expiration of the right to exercise any Rights. 
 (f) If, as a result of an adjustment made
pursuant to Section 11(a) hereof, the holder of any Right thereafter exercised shall become entitled to receive any shares of capital stock of the Company other than Preferred Shares, thereafter the number of such other shares so receivable
upon exercise of any Right shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Preferred Shares contained in Section 11(a) through (c) hereof,
inclusive, and the provisions of Sections 7, 9, 10 and 13 hereof with respect to the Preferred Shares shall apply on like terms to any such other shares. 

  
 A-28 

 (g) All Rights originally issued by the Company subsequent to any adjustment made
to the Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the number of one ten-thousandth of a Preferred Share purchasable from time to time hereunder upon exercise of the Rights, all subject to further
adjustment as provided herein. 
 (h) Unless the Company shall have exercised its election as provided in Section 11(i)
hereof, upon each adjustment of the Purchase Price as a result of the calculations made in Sections 11(b) and (c) 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 ten-thousandth of a Preferred Share (calculated to the nearest one hundred-millionth of a Preferred Share) obtained by (A) multiplying (x) the number of one ten-thousandth of a share
covered by a Right immediately prior to this adjustment by (y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price and (B) dividing the product so obtained by the Purchase Price in effect immediately
after such adjustment of the Purchase Price. 
 (i) The Company may elect, on or after the date of any adjustment of the
Purchase Price, to adjust the number of Rights in substitution for any adjustment in the number of one ten-thousandth of a Preferred Share purchasable upon the exercise of a Right. Each of the Rights outstanding after such adjustment of the number
of Rights shall be exercisable for the number of one ten-thousandth of a Preferred Share for which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become
that number of Rights (calculated to the nearest one hundred-thousandth) obtained by dividing the Purchase Price in effect 

  
 A-29 

 
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 (with prompt
written notice thereof to the Rights Agent) of its election to adjust the number of Rights, indicating the record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. This record date may be the date on which
the Purchase Price is adjusted or any day thereafter, but, if the Right Certificates have been issued, shall be at least 10 days later than the date of the public announcement. If Right Certificates have been issued, upon each adjustment of the
number of Rights pursuant to this Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to holders of record of Right Certificates on such record date Right Certificates evidencing, subject to Section 14
hereof, the additional Rights to which such holders shall be entitled as a result of such adjustment, or, at the option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Right
Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the Company, new Right Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment. Right
Certificates so to be distributed shall be issued, executed and countersigned in the manner provided for herein, and shall be registered in the names of the holders of record of Right Certificates on the record date specified in the public
announcement. 
 (j) Irrespective of any adjustment or change in the Purchase Price or in the number of one ten-thousandth of
a Preferred Share issuable upon the exercise of the Rights, the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price and the number of one ten-thousandth of a Preferred Share which were expressed in the
initial Right Certificates issued hereunder. 

  
 A-30 

 (k) Before taking any action that would cause an adjustment reducing the Purchase
Price below one ten-thousandth of the then par value, if any, of the Preferred Shares issuable upon exercise of the Rights, the Company shall take any corporate action which may, in the opinion of its counsel, be necessary in order that the Company
may validly and legally issue fully paid and nonassessable Preferred Shares at such adjusted Purchase Price. 
 (l) In any
case in which this Section 11 shall require that an adjustment in the Purchase Price be made effective as of a record date for a specified event, the Company may elect to defer (with prompt written notice thereof to the Rights Agent) until the
occurrence of such event the issuing to the holder of any Right exercised after such record date of the Preferred Shares and other capital stock or securities of the Company, if any, issuable upon such exercise over and above the Preferred Shares
and other capital stock or securities of the Company, if any, issuable upon such exercise on the basis of the Purchase Price in effect prior to such adjustment; provided, however, that the Company shall deliver to such holder a due
bill or other appropriate instrument evidencing such holder’s right to receive such additional shares upon the occurrence of the event requiring such adjustment. 

(m) Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make such reductions in
the Purchase Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that it, in its sole discretion, shall determine to be advisable in order that any consolidation or

  
 A-31 

 
subdivision of the Preferred Shares, issuance wholly for cash of any Preferred Shares at less than the current market price, issuance wholly for cash of Preferred Shares or securities which by
their terms are convertible into or exchangeable for Preferred Shares, dividends on Preferred Shares payable in Preferred Shares or issuance of rights, options or warrants referred to in Section 11(b) hereof, hereafter made by the Company to
holders of the Preferred Shares shall not be taxable to such stockholders. 
 (n) In the event that, at any time after the
date of this Agreement and prior to the Distribution Date, the Company shall (i) declare or pay any dividend on the Common Shares payable in Common Shares, or (ii) effect a subdivision, combination or consolidation of the Common Shares (by
reclassification or otherwise than by payment of dividends in Common Shares) into a greater or lesser number of Common Shares, then, in any such case, (A) the number of one ten-thousandth of a Preferred Share purchasable after such event upon
proper exercise of each Right shall be determined by multiplying the number of one ten-thousandth of a Preferred Share so purchasable immediately prior to such event by a fraction, the numerator of which is the number of Common Shares outstanding
immediately before such event and the denominator of which is the number of Common Shares outstanding immediately after such event, and (B) each Common Share outstanding immediately after such event shall have issued with respect to it that
number of Rights which each Common Share outstanding immediately prior to such event had issued with respect to it. The adjustments provided for in this Section 11(n) shall be made successively whenever such a dividend is declared or paid or
such a subdivision, combination or consolidation is effected. 

  
 A-32 

 Section 12. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an
adjustment is made or any event affecting the Rights or their exercisability (including without limitation an event that causes Rights to become null and void) as provided in Section 11 or 13 hereof, the Company shall promptly (a) prepare
a certificate setting forth such adjustment or describing such event and a brief statement of the facts accounting for such adjustment or describing such event, (b) file with the Rights Agent and with each transfer agent for the Common Shares
or the Preferred Shares a copy of such certificate and (c) if such adjustment occurs at any time after the Distribution Date, mail a brief summary thereof to each holder of a Right Certificate in accordance with Section 25 hereof. The
Rights Agent shall be fully protected in relying on any such certificate and on any adjustment or statement therein contained and shall not be obligated or responsible for calculating any adjustment, nor shall it have any duty or liability with
respect to, or be deemed to have knowledge of any such adjustment or event unless and until it shall have received such a certificate. 

Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power. In the event, directly or indirectly, at any
time after a Person has become an Acquiring Person, (a) the Company shall effect a share exchange, consolidate with, or merge with and into, any other Person, (b) any Person shall effect a share exchange, consolidate with the Company, or
merge with and into the Company and the Company shall be the continuing or surviving corporation of such share exchange or merger and, in connection with such merger, all or part of the Common Shares shall be changed into or exchanged for stock or
other securities of any other Person (or the Company) or cash or any other property, or (c) 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 

  
 A-33 

 
the Company and its Subsidiaries (taken as a whole) to any other Person other than the Company or one or more of its wholly-owned Subsidiaries, then, and in each such case, proper provision shall
be made so that (i) each holder of a Right (except as otherwise provided herein) shall thereafter have the right to receive, upon the exercise thereof at a price equal to the then current Purchase Price multiplied by the number of one
ten-thousandth of a Preferred Share for which a Right is then exercisable, in accordance with the terms of this Agreement and in lieu of Preferred Shares, such number of Common Shares of such other Person (including the Company as successor thereto
or as the surviving corporation) as shall equal the result obtained by (A) multiplying the then current Purchase Price by the number of one ten-thousandth of a Preferred Share for which a Right is then exercisable and dividing that product by
(B) 50% of the then current per share market price of the Common Shares of such other Person (determined pursuant to Section 11(d) hereof) on the date of consummation of such consolidation, merger, sale or transfer; (ii) the issuer of
such Common Shares shall thereafter be liable for, and shall assume, by virtue of such consolidation, merger, sale or transfer, all the obligations and duties of the Company pursuant to this Agreement; (iii) the term “Company” shall
thereafter be deemed to refer to such issuer; and (iv) such issuer shall take such steps (including, but not limited to, the reservation of a sufficient number of its Common Shares in accordance with Section 9 hereof) in connection with
such consummation as may be necessary to assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to the Common Shares of the Company thereafter deliverable upon the exercise of the Rights. The
Company shall not consummate any such consolidation, merger, sale or transfer unless, prior thereto, the Company and such issuer shall have executed and delivered to the Rights Agent a supplemental agreement so providing. The Company shall not enter
into any transaction of the kind referred to in this Section 13 if at the 

  
 A-34 

 
time of such transaction there are any rights, warrants, instruments or securities outstanding or any agreements or arrangements which, as a result of the consummation of such transaction, would
eliminate or substantially diminish the benefits intended to be afforded by the Rights. The provisions of this Section 13 shall similarly apply to successive mergers, share exchanges, or consolidations or sales or other transfers. 

Section 14. Fractional Rights and Fractional Shares. (a) The Company shall not be required to issue fractions of Rights or to
distribute Right Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall be paid to the registered holders of the Right Certificates with regard to which such fractional Rights would otherwise be issuable, an
amount in cash equal to the same fraction of the current market value of a whole Right. For 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 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, 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 

  
 A-35 

 
professional market maker making a market in the Rights selected by the Board of Directors of the Company. If on any such date no such market maker is making a market in the Rights, the fair
value of the Rights on such date as determined in good faith by the Board of Directors of the Company shall be used. 
 (b) The Company shall
not be required to issue fractions of Preferred Shares (other than fractions which are integral multiples of one ten-thousandth of a Preferred Share) upon exercise of the Rights or to distribute certificates which evidence fractional Preferred
Shares (other than fractions which are integral multiples of one ten-thousandth of a Preferred Share). Fractions of Preferred Shares in integral multiples of one ten-thousandth of a Preferred Share may, at the election of the Company, be evidenced
by depositary receipts, pursuant to an appropriate agreement between the Company and a depositary selected by it; provided that such agreement shall provide that the holders of such depositary receipts shall have all the rights, privileges
and preferences to which they are entitled as beneficial owners of the Preferred Shares represented by such depositary receipts. In lieu of fractional Preferred Shares that are not integral multiples of one ten-thousandth of a Preferred Share, the
Company shall pay to the registered holders of Right Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of one Preferred Share. For the purposes of this
Section 14(b), the current market value of a Preferred Share shall be the closing price of a Preferred Share (as determined pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of
such exercise. 
 (c) The holder of a Right, by the acceptance of the Right, expressly waives such holder’s right to receive any
fractional Rights or any fractional shares upon exercise of a Right (except as provided above). 

  
 A-36 

 (d) Whenever a payment for fractional Rights or fractional shares or other securities is to be
made by the Rights Agent, the Company shall (i) promptly prepare and deliver to the Rights Agent a certificate setting forth in reasonable detail the amounts of such payments, and (ii) provide sufficient monies to the Rights Agent in the
form of fully collected funds to make such payments. The Rights Agent shall be fully protected in relying upon such a certificate and shall have no duty with respect to, and shall not be deemed to have knowledge of any payment for fractional Rights
or fractional shares or other securities under any Section of this Agreement relating to the payment of fractional Rights or fractional shares or other securities unless and until the Rights Agent shall have received such a certificate and
sufficient monies. 
 Section 15. Rights of Action. All rights of action in respect of this Agreement, excepting the rights of
action given to the Rights Agent under Section 18 hereof, are vested in the respective registered holders of the Right Certificates (and, prior to the Distribution Date, the registered holders of the Common Shares); and any registered holder of
any Right Certificate (or, prior to the Distribution Date, of the Common Shares), without the consent of the Rights Agent or of the holder of any other Right Certificate (or, prior to the Distribution Date, of the Common Shares), may, in such
holder’s own behalf and for such holder’s own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, such holder’s right to exercise the Rights
evidenced by such Right Certificate in the manner provided in such Right Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights
would not have an adequate remedy at law for any breach of this Agreement, and will be entitled to specific performance of the obligations under, and injunctive relief against actual or threatened violations of the obligations of any Person subject
to, this Agreement. 

  
 A-37 

 Notwithstanding anything in this Agreement to the contrary, the Rights Agent shall not have any
liability to any holder of a Right or other Person as a result of the inability of the Company or the Rights Agent to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, judgment,
decree or ruling (whether interlocutory or final) issued by a court or by a governmental, regulatory, self-regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any
governmental authority, prohibiting or otherwise restraining performance of such obligation; provided, however, that the Company shall use all reasonable efforts to have any such injunction, order, judgment, decree or ruling lifted or otherwise
overturned as soon as possible. 
 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 the Common Shares; 
 (b) after
the Distribution Date, the Right Certificates are transferable (subject to the provisions of this Agreement) only on the registry books maintained by the Rights Agent if surrendered at the principal office of the Rights Agent, duly endorsed or
accompanied by a proper instrument of transfer with a completed form of certification; and 
 (c) the Company and the Rights
Agent may deem and treat the person in whose name the Right Certificate (or, prior to the Distribution Date, the associated Common Shares certificate (or Book Entry Common Share)) is registered as the absolute owner thereof and of the Rights
evidenced thereby (notwithstanding any notations of 

  
 A-38 

 
ownership or writing on the Right Certificate or the associated Common Shares certificate (or Ownership Statements or other notices provided to holders of Book Entry Common Shares) made by anyone
other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent shall be affected by any notice to the contrary. 

Section 17. Right Certificate Holder Not Deemed a Stockholder. No holder, as such, of any Right Certificate shall be entitled to
vote, receive dividends or be deemed for any purpose the holder of the Preferred Shares or any other securities of the Company which may at any time be issuable on the exercise or exchange 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 or exchanged in accordance with the provisions hereof. 

Section 18. Concerning the Rights Agent. 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 preparation, negotiation, delivery, amendment, administration and execution of this
Agreement and the exercise and performance of its duties hereunder. The Company also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, damage, judgment, fine, penalty, claim, demand, settlement, cost or
expense (including 

  
 A-39 

 
without limitation, the reasonable fees and expenses of legal counsel) incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent (each as determined by a
final, nonappealable judgment of a court of competent jurisdiction), for anything done or omitted by the Rights Agent in connection with the acceptance, administration, exercise and performance of its duties under this Agreement, including the costs
and expenses of defending against any claim of liability in connection herewith. The reasonable costs and expenses incurred in enforcing this right of indemnification shall be paid by the Company to the extent that the Rights Agent is successful in
so enforcing its right of indemnification. 
 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 acceptance and its administration of this Agreement and the exercise and performance of its duties hereunder in reliance upon any Right Certificate or certificate for the Preferred
Shares or Common Shares or for other securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or other paper or document believed by it to
be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper person or persons, or otherwise upon the advice of counsel as set forth in Section 20 hereof. Notwithstanding anything in this Agreement to the
contrary, in no event will the Rights Agent be liable for special, punitive, indirect, incidental or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Rights Agent has been advised of the
likelihood of such loss or damage and regardless of the form of action. The Rights Agent shall not be deemed to have knowledge of any event of which it was supposed to receive notice thereof hereunder, and the Rights Agent shall be fully protected
and shall incur no liability for failing to take any action in connection therewith unless and until it has received such notice in writing. 

  
 A-40 

 The provisions of this Section 18 and Section 20 hereof shall survive the termination
of this Agreement, the exercise, termination or expiration of the Rights and the resignation, replacement or removal of the Rights Agent. 

Section 19. Merger or Consolidation or Change of Name of Rights Agent. Any Person into which the Rights Agent or any successor
Rights Agent may be merged or with which it may effect a share exchange, be consolidated, or any Person resulting from any merger, share exchange, or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any
Person succeeding to the stock transfer or shareowner services business of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or document 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 Agreement, any of the Right Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such
Right Certificates so countersigned; and, in case at that time any of the Right Certificates shall not have been countersigned, any successor Rights Agent may countersign such Right Certificates either in the name of the predecessor Rights Agent or
in the name of the successor Rights Agent; and, in all such cases, such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement. 

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 

  
 A-41 

 
countersigned; and, in case at that time any of the Right Certificates shall not have been countersigned, the Rights Agent may countersign such Right Certificates either in its prior name or in
its changed name; and, in all such cases, such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement. 

Section 20. Duties of Rights Agent. The Rights Agent undertakes to perform only the duties and obligations imposed by this
Agreement and no implied duties or obligations shall be read into this Agreement against the Rights Agent. The Rights Agent shall perform those duties and obligations upon the following terms and conditions, by all of which the Company and the
holders of Right Certificates, by their acceptance thereof, shall be bound: 
 (a) The Rights Agent may consult with legal
counsel (who may be legal counsel for the Company), and the advice or opinion of such counsel shall be full and complete authorization and protection to the Rights Agent and the Rights Agent shall incur no liability for or in respect of any action
taken or omitted by it in good faith and in accordance with such advice or opinion. 
 (b) Whenever in the performance of its
duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter (including, without limitation, the identity of an Acquiring Person and the determination of the current per share market price of any
security) be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by any one of the Chairman of the Board, the Chief Executive Officer, the President, any Vice President, the Treasurer, the Secretary or any Assistant Secretary of the Company and delivered to the Rights Agent;
and such certificate shall be full and complete authorization and protection to the Rights Agent and the Rights Agent shall incur no liability for any action taken or suffered in good faith by it under the provisions of this Agreement in reliance
upon such a certificate. 

  
 A-42 

 (c) The Rights Agent shall be liable hereunder to the Company and any other
Person only for its own gross negligence, bad faith or willful misconduct (each as determined by a final, nonappealable judgment of a court of competent jurisdiction). Any liability of the Rights Agent shall be limited to three times the amount of
aggregate annual fees paid by the Company to the Rights Agent. 
 (d) The Rights Agent shall not be liable for or by reason
of any of the statements of fact or recitals contained in this Agreement or in the Right Certificates (except its countersignature thereof) or be required to verify the same, but all such statements and recitals are and shall be deemed to have been
made by the Company only. 
 (e) The Rights Agent shall not be under any responsibility in respect of the validity of this
Agreement or the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Right Certificate (except its countersignature thereof); nor shall it be responsible for any
breach by the Company of any covenant or condition contained in this Agreement or in any Right Certificate; nor shall it be responsible for any change in the exercisability of the Rights (including but not limited to the Rights becoming null and
void pursuant to Section 11(a)(ii) hereof) or any adjustment in the terms of the Rights (including but not limited to the manner, method or amount thereof) provided for in Section 3, 11, 13, 23 or 24 hereof, or the ascertaining of the
existence of facts that would require any such change or adjustment (except with respect to the exercise of Rights evidenced by Right Certificates 

  
 A-43 

 
after receipt of a certificate furnished pursuant to Section 12 describing such change or adjustment upon which the Rights Agent may rely); nor shall it by any act hereunder be deemed to
make any representation or warranty as to the authorization or reservation of any Preferred Shares or other securities to be issued pursuant to this Agreement or any Right Certificate or as to whether any Preferred Shares or other securities will,
when so issued, be validly authorized and issued, fully paid and nonassessable. 
 (f) The Company agrees that it will
perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing
by the Rights Agent of the provisions of this Agreement. 
 (g) The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from any one of the Chairman of the Board, the Chief Executive Officer, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer or any Assistant or
the 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 by it in good faith in accordance with instructions of any such officer
or for any delay in acting while waiting for those instructions. The Rights Agent shall be fully authorized and protected in relying upon the most recent instructions received by any such officer. Any application by the Rights Agent for written
instructions from the Company may, at the option of the Rights Agent, set forth in writing any action proposed to be taken, suffered or omitted to be taken by the Rights Agent with respect to its duties and obligations under this Agreement and the

  
 A-44 

 
date on and/or after which such action shall be taken, suffered or such omission shall be effective. The Rights Agent shall not be liable for any action taken, suffered or omitted to be taken by
it in accordance with a proposal included in any such application on or after the date specified therein (which date shall not be less than three (3) Business Days after the date indicated in such application unless any such officer shall have
consented in writing to an earlier date) unless, prior to taking, suffering or omitting to take any such action, the Rights Agent has received written instructions in response to such application specifying the action to be taken, suffered or
omitted to be taken. 
 (h) The Rights Agent and any stockholder, director, officer or employee of the Rights Agent may buy,
sell or deal in any of the Rights or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as
though it were not the Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other Person. 

(i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder
either itself (through its directors, officers and employees) or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for
any loss to the Company resulting from any such act, default, neglect or misconduct, provided that reasonable care was exercised in the selection and continued employment thereof. 

  
 A-45 

 Section 21. Change of Rights Agent. The Rights Agent or any successor Rights Agent
may resign and be discharged from its duties under this Agreement upon 30 days’ notice in writing mailed to the Company and, in the event that the Rights Agent or one of its Affiliates is not also the transfer agent for the Company, to each
transfer agent of the Common Shares or Preferred Shares by registered or certified 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 have resigned
automatically and be discharged from its duties as Rights Agent under this Agreement as of the effective date of such termination, and the Company shall be responsible for sending any required notice. The Company may remove the Rights Agent or any
successor Rights Agent (with or without cause) upon 30 days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of the Common Shares or Preferred Shares by registered or
certified mail, and to the holders of the Right Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a
successor to the Rights Agent. If the Company shall fail to make such appointment within a period of 30 days after giving notice of such removal or after it has been notified in writing of such resignation or incapacity by the resigning or
incapacitated Rights Agent or by the holder of a Right Certificate (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 either (a) a Person organized and doing business under the laws of the
United States or of the State of New York, (or of any other state of the United States so long as such corporation is authorized to do business as a banking institution in such state), in good standing which is 

  
 A-46 

 
authorized under such laws to exercise corporate trust or stock transfer powers and is subject to supervision or examination by federal or state authority and which has at the time of its
appointment as Rights Agent a combined capital and surplus of at least $50 million or (b) an Affiliate or direct or indirect wholly-owned Subsidiary of such Person or its wholly-owning parent. After appointment, the successor Rights Agent shall
be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any
property at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment, the Company shall file notice thereof in writing
with the predecessor Rights Agent and each transfer agent of the Common Shares or Preferred Shares, and mail a notice thereof in writing to the registered holders of the Right Certificates. Failure to give any notice provided for in this
Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 

Section 22. Issuance of New Right Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the
contrary, the Company may, at its option, issue new Right Certificates evidencing Rights in such form as may be approved by the Board of Directors of the Company to reflect any adjustment or change in the Purchase Price and the number or kind or
class of shares or other securities or property purchasable under the Right Certificates made in accordance with the provisions of this Agreement. 

  
 A-47 

 Section 23. Redemption. (a) The Board of Directors of the Company may, at its option,
at any time prior to such time as any Person becomes an Acquiring Person, redeem all but not less than all the then outstanding Rights at a redemption price of $0.01 per Right, 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 of the Company may be made effective at such
time, on such basis and with such conditions as the Board of Directors of the Company, in its sole discretion, may establish. 
 (b)
Immediately upon the action of the Board of Directors of the Company ordering the redemption of the Rights pursuant to paragraph (a) of this Section 23, and without any further action and without any notice, the right to exercise the
Rights will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price. The Company shall promptly give public notice of any such redemption (with prompt written notice thereof to the Rights Agent);
provided, however, that the failure to give, or any defect in, any such notice shall not affect the validity of such redemption. Within ten (10) days after such action of the Board of Directors of the Company ordering the
redemption of the Rights, the Company shall mail a notice of redemption to all the holders of the then outstanding Rights at their last addresses as they appear upon the registry books of the Rights Agent or, prior to the Distribution Date, on the
registry books of the transfer agent for the Common Shares. Any notice 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. Neither the Company nor any of its Affiliates or Associates may redeem, acquire or purchase for value any Rights at any time in any manner other than that specifically set forth in this
Section 23 or in Section 24 hereof, and other than in connection with the purchase of Common Shares prior to the Distribution Date. 

  
 A-48 

 Section 24. Exchange. (a) The Board of Directors of the Company may, at its
option, at any time after any Person becomes an Acquiring Person, exchange all or part of the then outstanding and exercisable Rights (which shall not include Rights that have become null and void pursuant to the provisions of Section 11(a)(ii)
hereof) for Common Shares at an exchange ratio of one Common Share per Right, appropriately adjusted to reflect any adjustment in the number of Rights pursuant to Section 11(i) (such exchange ratio being hereinafter referred to as the
“Exchange Ratio”). Notwithstanding the foregoing, the Board of Directors of the Company shall not be empowered to effect such exchange at any time after any Person (other than the Company, any Subsidiary of the Company, any employee
benefit plan of the Company or any such Subsidiary, or any entity holding Common Shares for or pursuant to the terms of any such plan), together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or more of the
Common Shares then outstanding. 
 (b) Immediately upon the action of the Board of Directors of the Company ordering the exchange of any
Rights pursuant to paragraph (a) of this Section 24 and without any further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights shall be to receive that
number of Common Shares equal to the number of such Rights held by such holder multiplied by the Exchange Ratio. The Company shall promptly give public notice of any such exchange (with prompt written notice thereof to the Rights Agent);
provided, however, that the failure to give, or any defect in, such notice shall not affect the validity of such exchange. The Company promptly shall mail a notice of any such exchange to all of the holders of such Rights at their last
addresses as they appear upon the registry books of the Rights Agent. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method
by which the exchange of the Common Shares for 

  
 A-49 

 
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 null and void pursuant to the provisions of Section 11(a)(ii) hereof) held by each holder of Rights. 

(c) In the event that there shall not be sufficient Common Shares issued but not outstanding or authorized but unissued to permit any exchange
of Rights as contemplated in accordance with this Section 24, the Company shall take all such action as may be necessary to authorize additional Common Shares for issuance upon exchange of the Rights. In the event the Company shall, after good
faith effort, be unable to take all such action as may be necessary to authorize such additional Common Shares, the Company shall substitute, for each Common Share that would otherwise be issuable upon exchange of a Right, a number of Preferred
Shares or fraction thereof such that the current per share market price of one Preferred Share multiplied by such number or fraction is equal to the current per share market price of one Common Share as of the date of issuance of such Preferred
Shares or fraction thereof. 
 (d) The Company shall not be required to issue fractions of Common Shares or to distribute certificates which
evidence fractional Common Shares. In lieu of such fractional Common Shares, the Company shall pay to the registered holders of the Right Certificates with regard to which such fractional Common Shares would otherwise be issuable an amount in cash
equal to the same fraction of the current market value of a whole Common Share. For the purposes of this paragraph (d), the current market value of a whole Common Share shall be the closing price of a Common Share (as determined pursuant to the
second sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of exchange pursuant to this Section 24. 

  
 A-50 

 Section 25. Notice of Certain Events. (a) In case the Company shall, at any time
after the Distribution Date, propose (i) to pay any dividend payable in stock of any class to the holders of the Preferred Shares or to make any other distribution to the holders of the Preferred Shares (other than a regular quarterly cash
dividend), (ii) to offer to the holders of the Preferred Shares rights or warrants to subscribe for or to purchase any additional Preferred Shares or shares of stock of any class or any other securities, rights or options, (iii) to effect
any reclassification of the Preferred Shares (other than a reclassification involving only the subdivision of outstanding Preferred Shares), (iv) to effect any share exchange, consolidation or merger into or with, or to effect any sale or other
transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one or more transactions, of 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to, any other Person,
(v) to effect the liquidation, dissolution or winding up of the Company, or (vi) to declare or pay any dividend on the Common Shares payable in Common Shares or to effect a subdivision, combination or consolidation of the Common Shares (by
reclassification or otherwise than by payment of dividends in Common Shares), then, in each such case, the Company shall give to each holder of a Right Certificate, in accordance with Section 26 hereof, a notice of such proposed action, which
shall specify the record date for the purposes of such stock dividend, or distribution of rights or warrants, or the date on which such share exchange, reclassification, consolidation, merger, sale, transfer, liquidation, dissolution, or winding up
is to take place and the date of participation therein by the holders of the Common Shares and/or Preferred Shares, if any such date is to be fixed, and such notice shall be so given in the case of any action covered by clause (i) or
(ii) above at least 10 days prior to the record date for determining holders of the Preferred Shares for purposes of such action, and, in the case of any such other action, at least 10 days prior to the date of the taking of such proposed
action or the date of participation therein by the holders of the Common Shares and/or Preferred Shares, whichever shall be the earlier. 

  
 A-51 

 (b) In case the event set forth in Section 11(a)(ii) hereof shall occur, then the Company
shall, as soon as practicable thereafter, give to the Rights Agent and each holder of a Right Certificate, in accordance with Section 26 hereof, a notice of the occurrence of such event, which notice shall describe such event and the
consequences of such event to holders of Rights under Section 11(a)(ii) hereof. 
 Section 26. Notices. Notices or demands
authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Right Certificate to or on the Company shall be sufficiently given or made if sent by overnight delivery service or
first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows: 

CEC Entertainment, Inc. 
 4441
West Airport Freeway 
 Irving, Texas 75062 

Attention: Corporate Secretary 
 Subject to the
provisions of Section 21 hereof, any notice or demand authorized by this Agreement to be given or made by the Company or by the holder of any Right Certificate to or on the Rights Agent shall be sufficiently given or made if sent by overnight
delivery service or first-class mail, postage prepaid, addressed (until another address is filed in writing with the Company) as follows: 

Computershare Trust Company 

c/o Voluntary Corporate Actions 

250 Royall Street 
 Canton,
Massachusetts 02021 
 Notices or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Right
Certificate shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books of the Company. 

  
 A-52 

 Section 27. Supplements and Amendments. Subject to this Section, the Company may, and
the Rights Agent shall, if directed by the Company, from time to time supplement or amend this Agreement without the approval of any holders of Right Certificates in order to cure any ambiguity, to correct or supplement any provision contained
herein which may be defective or inconsistent with any other provisions herein, or to make any other provisions with respect to the Rights which the Company may deem necessary or desirable, any such supplement or amendment to be evidenced by a
writing signed by the Company and the Rights Agent; provided, however, that, from and after such time as any Person becomes an Acquiring Person, this Agreement shall not be amended in any manner which would adversely affect the
interests of the holders of Rights. For the avoidance of doubt, the Company shall be entitled to adopt and implement such procedures and arrangements (including with third parties) as it may deem necessary or desirable to facilitate the exercise,
exchange, trading, issuance or distribution of the Rights (and Preferred Shares) as contemplated hereby and to ensure that an Acquiring Person does not obtain the benefits thereof, and amendments in respect of the foregoing shall not be deemed to
adversely affect the interests of the holders of Rights. Upon the delivery of a certificate from an appropriate officer of the Company that states that the proposed supplement or amendment is in compliance with the terms of this Section 27, the
Rights Agent shall execute such supplement or amendment; provided, that notwithstanding anything in this Agreement to the contrary, the Rights Agent may, but shall not be obligated to, enter into any supplement or amendment that materially and
adversely affects the Rights Agent’s own rights, duties, obligations or immunities under this Agreement. 

  
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 Section 28. Successors. All the covenants and provisions of this Agreement by or for
the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective successors and assigns hereunder. 

Section 29. Benefits of this Agreement. Nothing in this Agreement shall be construed to give to any Person other than the Company,
the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Shares) any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive
benefit of the Company, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Shares). Nothing in this Agreement shall be construed to give any holder of Rights or any other Person any
legal or equitable rights, remedies or claims under this Agreement by virtue of the approval, execution or delivery of the Merger Agreement or the consummation of the Offer or any other transactions contemplated by the Merger Agreement, or the
public announcement of any of the foregoing. 
 Section 30. Severability. If any term, provision, covenant or restriction of
this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated; provided, however, that if any such excluded term, provision, covenant or restriction shall materially and adversely affect the rights, immunities, duties or obligations of the Rights Agent, the Rights
Agent shall be entitled to resign upon 10 Business Days’ written notice to the Company pursuant to the requirements of Section 26 of this Agreement. 

  
 A-54 

 Section 31. Governing Law. This Agreement and each Right Certificate issued hereunder
shall be deemed to be a contract made under the laws of the State of Kansas 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 32. Counterparts. This Agreement may be executed in any number of counterparts and each of such counterparts
shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. A signature to this Agreement transmitted electronically shall have the same authority, effect, and
enforceability as an original signature. 
 Section 33. Descriptive Headings. Descriptive headings of the several Sections of
this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 

Section 34. Customer Identification Program. The Company acknowledges that the Rights Agent is subject to the customer
identification program (“Customer Identification Program”) requirements under the USA PATRIOT Act and its implementing regulations, and that the Rights Agent must obtain, verify and record information that allows the Rights Agent to
identify the Company. Accordingly, prior to accepting an appointment hereunder, the Rights Agent may request information from the Company that will help the Rights Agent to identify the Company, including without limitation the Company’s
physical address, tax identification number, organizational documents, certificate of good standing, license to do business, or any other information that the Rights Agent deems necessary. The Company agrees that the Rights Agent cannot accept an
appointment hereunder unless and until the Rights Agent verifies the Company’s identity in accordance with the Customer Identification Program requirements. 

  
 A-55 

 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 malfunctions 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. The Rights Agent shall provide the
Company prompt notice as soon as practicable in the event that any such delay or failure in performance occurs and keep the Company apprised of developments and mitigation effort with respect thereto. 

Section 36. Treatment of Rights at the Acceptance Time or the Effective Time. Any provision to the contrary in this Agreement
notwithstanding, all Rights will expire in their entirety immediately prior to the earlier to occur of the Acceptance Time and the Effective Time (each as defined in the Merger Agreement) without any payment to be made in respect thereof. 

  
 A-56 

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

									
	Attest:	 		 	CEC ENTERTAINMENT, INC.
					
	By	 	  
	 		 	By	 	  

		 	Name:	 		 	Name:
		 	Title:	 		 	Title
			
	Attest:	 		 	COMPUTERSHARE TRUST COMPANY, N.A.
					
	By	 	  
	 		 	By	 	  

		 	Name:	 		 	Name:
		 	Title:	 		 	Title

  
 A-57 

 FORM 

of 
 CERTIFICATE OF DESIGNATIONS

 of 
 SERIES B JUNIOR
PARTICIPATING PREFERRED STOCK 
 of 

CEC ENTERTAINMENT, INC. 

(Pursuant to Section 17-6401(g) 

of the Kansas General Corporation Code) 

CEC Entertainment, Inc., a Kansas corporation (hereinafter called the “Corporation”), hereby certifies that the following resolution
was adopted by the Board of Directors of the Corporation as required by Section 17-6401(g) of the Kansas General Corporation Code at a meeting duly called and held on January 15, 2014: 

RESOLVED, that pursuant to the authority granted to and vested in the Board of Directors of this Corporation (hereinafter called the
“Board of Directors” or the “Board”) in accordance with the provisions of the Certificate of Incorporation, the Board of Directors hereby creates a series of Class B Preferred Stock, par value $100 per share, of the Corporation
(the “Preferred Stock”), and hereby states the designation and number of shares, and fixes the relative rights, preferences, and limitations thereof as follows: 

Series B Junior Participating Preferred Stock: 

Section 1. Designation and Amount. The shares of such series shall be designated as “Series B Junior Participating Preferred
Stock” (the “Series B Preferred Stock”) and the number of shares constituting the Series B Preferred Stock shall be 2,000. 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 Preferred Stock to a number less than the number of shares then outstanding plus the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants
or upon the conversion of any outstanding securities issued by the Corporation convertible into Series B Preferred Stock. 
 Section 2.
Dividends and Distributions. 
 (A) Subject to the rights of the holders of any shares of any series of Class B
Preferred Stock (or any similar stock) ranking prior and superior to the Series B Preferred Stock with respect to dividends, the holders of shares of Series B Preferred Stock, in preference to the holders of Common Stock, par value $0.10 per share
(the “Common Stock”), of the Corporation, 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 the first day of March, June, September and December in each year (each such date being referred to herein as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date

  
 A-58 

 
after the first issuance of a share or fraction of a share of Series B Preferred Stock, in an amount per share (rounded to the nearest cent) equal to the greater of (a) $1 or
(b) subject to the provision for adjustment hereinafter set forth, 10,000 times the aggregate per share amount of all cash dividends, and 10,000 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 Preferred Stock. In the event the
Corporation shall at any time 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 Preferred Stock were entitled immediately prior to such event
under clause (b) of the preceding sentence shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that were outstanding immediately prior to such event. 
 (B) The Corporation shall declare
a dividend or distribution on the Series B 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 per share on
the Series B 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 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 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 Preferred Stock in an amount less than the total amount of such dividends at the time accrued and
payable on such shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix a record date
for the determination of holders of shares of Series B Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record date shall be not more than 60 days prior to the date fixed for the payment thereof. 

  
 A-59 

 Section 3. Voting Rights. The holders of shares of Series B Preferred Stock shall
have the following voting rights: 
 (A) Subject to the provision for adjustment hereinafter set forth, each share of Series
B Preferred Stock shall entitle the holder thereof to 10,000 votes on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at any time 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 per share to which holders of shares of Series B Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such number by a fraction, the
numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 

(B) Except as otherwise provided herein, in any other Certificate of Designations creating a series of Class B Preferred Stock
or any similar stock, or by law, the holders of shares of Series B Preferred Stock and the holders of shares of Common Stock and any other capital stock of the Corporation having general voting rights shall vote together as one class on all matters
submitted to a vote of stockholders of the Corporation. 
 (C) Except as set forth herein, or as otherwise provided by law,
holders of Series B 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 quarterly dividends or other dividends or distributions payable on the Series B 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 Preferred Stock outstanding shall have been paid in full, the Corporation shall not: 

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

  
 A-60 

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

(iv) redeem or purchase or otherwise acquire for consideration any shares of Series B Preferred Stock, or any shares of stock
ranking on a parity with the Series B 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 Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for
consideration any shares of stock of the Corporation unless the Corporation could, under paragraph (A) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner. 

Section 5. Reacquired Shares. Any shares of Series B Preferred Stock purchased or otherwise acquired by the Corporation in any
manner whatsoever shall be retired and cancelled promptly after the acquisition thereof. All such shares shall upon their cancellation become authorized but unissued shares of Preferred Stock and may be reissued as part of a new series of Class B
Preferred Stock subject to the conditions and restrictions on issuance set forth herein, in the Certificate of Incorporation, or in any other Certificate of Designations creating a series of Class B Preferred Stock or any similar stock or as
otherwise required by law. 
 Section 6. Liquidation, Dissolution or Winding Up. Upon any liquidation, dissolution or winding up
of the Corporation, no distribution shall be made (1) to the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series B Preferred Stock unless, prior thereto, the holders of
shares of Series B Preferred Stock shall have received $10,000 per share, plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared, to the date of such payment, provided that the holders of shares of
Series B Preferred Stock shall be entitled to receive an aggregate amount per share, subject to the provision for adjustment hereinafter set forth, equal to 10,000 times the aggregate amount to be distributed per share to holders of shares of Common
Stock, or (2) to the holders of shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series B Preferred Stock, except distributions made ratably on the Series B Preferred Stock and
all such parity stock in proportion to the total amounts to which the holders of all such shares are entitled upon such liquidation, dissolution or winding up. In the event the Corporation shall at any time 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 aggregate amount to which holders of shares of Series B Preferred Stock were entitled immediately prior to such event under the proviso in clause (1) of the

  
 A-61 

 
preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
 Section 7.
Consolidation, Merger, etc. In case the Corporation shall enter into any consolidation, merger, combination or other transaction in which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any
other property, then in any such case each share of Series B Preferred Stock shall at the same time be similarly exchanged or changed into an amount per share, subject to the provision for adjustment hereinafter set forth, equal to 10,000 times the
aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed or exchanged. In the event the Corporation shall at any time 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 set forth in the preceding sentence with respect to the exchange or change of shares of Series B Preferred Stock shall be adjusted by multiplying
such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such
event. 
 Section 8. No Redemption. The shares of Series B Preferred Stock shall not be redeemable. 

Section 9. Rank. The Series B Preferred Stock shall rank, with respect to the payment of dividends and the distribution of assets,
junior to all series of any other class of the Corporation’s Preferred Stock. 
 Section 10. Amendment. The Certificate of
Incorporation of the Corporation shall not be amended in any manner which would materially alter or change the powers, preferences or special rights of the Series B Preferred Stock so as to affect them adversely without the affirmative vote of the
holders of at least two-thirds of the outstanding shares of Series B Preferred Stock, voting together as a single class. 

  
 A-62 

 IN WITNESS WHEREOF, this Certificate of Designations is executed on behalf of the Corporation by
its Chairman of the Board and attested by its Secretary this              day of January, 2014. 
  

	
	  

	 Chairman of the Board

 Attest: 
  

	
	  

	 Secretary

  
 A-63 

 Exhibit B 

Form of Right Certificate 
  

			
	Certificate No. R-	  	         Rights

 NOT EXERCISABLE AFTER JANUARY 14, 2015 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS OR IF THE
ACCEPTANCE TIME OR EFFECTIVE TIME (EACH AS DEFINED IN THE AGREEMENT AND PLAN OF MERGER, BY AND AMONG QUESO HOLDINGS INC., Q MERGER SUB INC. AND CEC ENTERTAINMENT, INC., DATED AS OF JANUARY 15, 2014 (THE “MERGER AGREEMENT”)) OCCURS. THE
RIGHTS ARE SUBJECT TO REDEMPTION AT $0.01 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTHIN THE AGREEMENT. 
 Right Certificate

 CEC ENTERTAINMENT, 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 Agreement, dated as of January 15, 2014 (the
“Agreement”), between CEC Entertainment, Inc., a Kansas corporation (the “Company”), and Computershare Trust Company, N.A. (the “Rights Agent”), to purchase from the Company at any time after the Distribution Date (as
such term is defined in the Agreement) and prior to 5:00 P.M., New York, New York time, on January 14, 2015 at the principal office of the Rights Agent, or at the office of its successor as Rights Agent, one ten-thousandth of a fully paid non-assessable share of Series B Junior Participating Preferred Stock, par value $100 per share, of the Company (the “Preferred Shares”), at a purchase price of $54.00 per one ten-thousandth of a Preferred
Share (the “Purchase Price”), upon presentation and surrender of this Right Certificate with the Form of Election to 

  
 B-1 

 
Purchase duly executed. The number of Rights evidenced by this Right Certificate (and the number of one ten-thousandth of a Preferred Share which may be purchased upon exercise hereof) set forth
above, and the Purchase Price set forth above, are the number and Purchase Price as of January 15, 2014, based on the Preferred Shares as constituted at such date. As provided in the Agreement, the Purchase Price and the number of one
ten-thousandth of a Preferred Share which may be purchased upon the exercise of the Rights evidenced by this Right Certificate are subject to modification and adjustment upon the happening of certain events. 

This Right Certificate is subject to all of the terms, provisions and conditions of the Agreement, which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which 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 Agreement are on file at the principal executive offices of the Company and the offices of the Rights Agent. 

This Right Certificate, with or without other Right Certificates, upon surrender at the principal office 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 Preferred Shares 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. 

  
 B-2 

 Subject to the provisions of the Agreement, the Rights evidenced by this Right Certificate
(i) may be redeemed by the Company at a redemption price of $0.01 per Right or (ii) may be exchanged in whole or in part for Preferred Shares or shares of the Company’s Common Stock, par value $0.10 per share. 

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

No holder of this Right Certificate shall be entitled to vote or receive dividends or be deemed for any purpose the holder of the Preferred
Shares 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 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 Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by this Right Certificate shall have been exercised as provided in the Agreement.

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

  
 B-3 

 WITNESS the facsimile signature of the proper officers of the Company and its corporate seal.
Dated as of January             , 2014. 
  

									
	Attest:	 		 	CEC ENTERTAINMENT, INC.
					
	By	 	  
	 		 	By	 	  

		 	Name:	 		 	Name:	 	
		 	Title:	 		 	Title:	 	
		 	Countersigned:	 		 		 	

  

			
	COMPUTERSHARE TRUST COMPANY, N.A.
		
	By	 	  

		 	Name:
		 	Title:

  
 B-4 

 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 Guaranteed: 

Signatures must be guaranteed by a member or participant in the Medallion Signature Guarantee Program at a guarantee level acceptable to the
Company’s Transfer Agent. 
 The undersigned hereby certifies that the Rights evidenced by this Right Certificate are not Beneficially
Owned by an Acquiring Person or an Affiliate or Associate thereof (as defined in the Agreement) and are not issued with respect to Notional Common Shares related to a Derivatives Contract described in clause (iv) of the definition of Beneficial
Owner (as such terms are defined in the Agreement). 
  

	
	  
 Signature

  
 B-5 

 Form of Reverse Side of Right Certificate – continued 

FORM OF ELECTION TO PURCHASE 

(To be executed if holder desires to exercise 

Rights represented by the Right Certificate.) 

To: CEC ENTERTAINMENT, INC. 
 The undersigned
hereby irrevocably elects to exercise                          Rights represented by this Right Certificate to purchase the
Preferred Shares issuable upon the exercise of such Rights and requests that certificates for such Preferred Shares be issued in the name of: 
 Please
insert social security 
 or other identifying number 
  

 
 (Please print name and address) 

 
  

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

or other identifying number 
  

 
 (Please print name and address) 

 
  

Dated:
                                     

 

	
	  
 Signature

  
 B-6 

 Signature Guaranteed: 

Signatures must be guaranteed by a member or participant in the Medallion Signature Guarantee Program at a guarantee level acceptable to the
Company’s Transfer Agent. 
 The undersigned hereby certifies that the Rights evidenced by this Right Certificate are not Beneficially
Owned by an Acquiring Person or an Affiliate or Associate thereof (as defined in the Agreement) and are not issued with respect to Notional Common Shares related to a Derivatives Contract described in clause (iv) of the definition of Beneficial
Owner (as such terms are defined in the Agreement). 
  

	
	  
 Signature

  
 B-7 

 NOTICE 

The signature in the Form of Assignment or Form of Election to Purchase, as the case may be, 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 Agreement) and such Assignment or Election to Purchase will not be honored. 

  
 B-8 

 Exhibit C 

SUMMARY OF RIGHTS TO PURCHASE 

PREFERRED SHARES 
 Introduction 

On January 15, 2014, the Board of Directors of our Company, CEC Entertainment, Inc., a Kansas corporation, declared a dividend of one
preferred share purchase right (a “Right”) for each outstanding share of common stock, par value $0.10 per share. The dividend is payable on January 26, 2014 to the stockholders of record on January 26, 2014. 

Our Board has adopted the Rights Agreement to assist it in overseeing a fair and orderly process involving a sale of the Company. In general
terms, it works by imposing a significant penalty upon any person or group which acquires 10% or more of our outstanding common stock without the approval of our Board. If a stockholder’s beneficial ownership of our common stock as of the time
of the public announcement of the rights plan and associated dividend declaration is at or above the applicable threshold (including through entry into certain derivative positions), that stockholder’s then-existing ownership percentage would
be grandfathered, but the rights would become exercisable if at any time after such announcement, the stockholder increases its ownership percentage by 0.001% or more. The Rights Agreement will not interfere with any merger or other business
combination approved by our Board. 
 For those interested in the specific terms of the Rights Agreement as made between our Company and
Computershare Trust Company, N.A., as the Rights Agent, on January 15, 2014, we provide the following summary description. Please note, however, that this description is only a summary, and is not complete, and should be read together with the
entire Rights Agreement, which has been filed with the Securities and Exchange Commission on January 16, 2014 as an exhibit to the Company’s Current Report on Form 8-K. 

  
 C-1 

 The Rights. Our Board authorized the issuance of a Right with respect to each outstanding
share of common stock on January 26, 2014. The Rights will initially trade with, and will be inseparable from, the common stock. The Rights are evidenced only by certificates that represent shares of common stock. New Rights will accompany any
new shares of common stock we issue after January 26, 2014 until the Distribution Date described below. 
 Exercise Price. Each
Right will allow its holder to purchase from our Company one ten-thousandth of a share of Series B Junior Participating Preferred Stock (“Preferred Share”) for $54.00 once the Rights become exercisable. This portion of a Preferred Share
will give the stockholder approximately the same dividend, voting, and liquidation rights as would one share of common stock. Prior to exercise, the Right does not give its holder any dividend, voting, or liquidation rights. 

Exercisability. The Rights will not be exercisable until 10 days after the public announcement that a person or group has become an
“Acquiring Person” by obtaining beneficial ownership of 10% or more of our outstanding common stock. 
 Certain synthetic
interests in securities created by derivative positions — whether or not such interests are considered to be ownership of the underlying common stock or are reportable for purposes of Regulation 13D of the Securities Exchange Act — are
treated as beneficial ownership of the number of shares of the company’s common stock equivalent to the economic exposure created by the derivative position, to the extent actual shares of the company’s common stock are directly or
indirectly held by counterparties to the derivatives contracts. Swaps dealers unassociated with any control intent or intent to evade the purposes of the rights plan are excepted from such imputed beneficial ownership. 

  
 C-2 

 We refer to the date when the Rights become exercisable as the “Distribution Date.”
Until that date, the common stock certificates (or, in the case of uncertificated shares, by notations in the book-entry account system) will also evidence the Rights, and any transfer of shares of common stock will constitute a transfer of Rights.
After that date, the Rights will separate from the common stock and be evidenced by book-entry credits or by Rights certificates that we will mail to all eligible holders of common stock. Any Rights held by an Acquiring Person are null and void and
may not be exercised. 
 Consequences of a Person or Group Becoming an Acquiring Person. 

 

	 	•	 	Flip In. If a person or group becomes an Acquiring Person, all holders of Rights except the Acquiring Person may, for $54.00, purchase shares of our common stock with a market value of $108.00, based on the
market price of the common stock prior to such acquisition. 

  

	 	•	 	Flip Over. If our Company is later acquired in a merger or similar transaction after the Rights Distribution Date, all holders of Rights except the Acquiring Person may, for $54.00, purchase shares of the
acquiring corporation with a market value of $108.00 based on the market price of the acquiring corporation’s stock, prior to such merger. 

  

	 	•	 	Notional Shares. Shares held by Affiliates and Associates of an Acquiring Person, and Notional Shares held by counterparties to a Derivatives Contract with an Acquiring Person, will be deemed to be beneficially
owned by the Acquiring Person. 

 Preferred Share Provisions. 

Each one ten-thousandth of a Preferred Share, if issued: 
  

	 	•	 	will not be redeemable. 

  

	 	•	 	will entitle holders to quarterly dividend payments of $1.00 per share, or an amount equal to the dividend paid on one share of common stock, whichever is greater. 

 

	 	•	 	will entitle holders upon liquidation either to receive $10,000.00 per share, or an amount equal to the payment made on one share of common stock, whichever is greater. 

 

	 	•	 	will have the same voting power as one share of common stock. 

  

	 	•	 	if shares of our common stock are exchanged via merger, consolidation, or a similar transaction, will entitle holders to a per share payment equal to the payment made on one share of common stock. 

  
 C-3 

 The value of one ten-thousandth interest in a Preferred Share should approximate the value of one share of common
stock. 
 Expiration. The Rights will expire on January 24, 2014, or the Acceptance Time or Effective Time (as defined in the
Agreement and Plan of Merger, by and among Queso Holdings Inc., Q Merger Sub Inc. and CEC Entertainment, Inc., dated as of January 15, 2014 (the “Merger Agreement”)). 

Redemption. Our Board may redeem the Rights for $0.01 per Right at any time before any person or group becomes an Acquiring Person. If
our Board redeems any Rights, it must redeem all of the Rights. Once the Rights are redeemed, the only right of the holders of Rights will be to receive the redemption price of $0.01 per Right. The redemption price will be adjusted if we have a
stock split or stock dividends of our common stock. 
 Exchange. After a person or group becomes an Acquiring Person, but before an
Acquiring Person owns 50% or more of our outstanding common stock, our Board may extinguish the Rights by exchanging one share of common stock or an equivalent security for each Right, other than Rights held by the Acquiring Person. 

Anti-Dilution Provisions. Our Board may adjust the purchase price of the Preferred Shares, the number of Preferred Shares issuable and
the number of outstanding Rights to prevent dilution that may occur from a stock dividend, a stock split, a reclassification of the Preferred Shares or common stock. No adjustments to the Exercise Price of less than 1% will be made. 

Amendments. The terms of the Rights Agreement may be amended by our Board without the consent of the holders of the Rights. After a
person or group becomes an Acquiring Person, our Board may not amend the agreement in a way that adversely affects holders of the Rights. 

  
 C-4f8k011014ex10i_bluesunmedia.htm

Exhibit 10.1

 

DATED THE 17TH DAY OF APRIL 2009

BETWEEN

SS MICROBIAL SDN BHD (COMPANY No 843363-k)

AND

FULL LEAD BIO-TECHNOLOGY (M) SDN BHD

(COMPANY NO 844666-P)

 

********************************************************************************************************************

 

JOINT VENTURE & SUPPLY AGREEMENT

********************************************************************************************************************

SOLICITORS:

MESSERS T G LIM & PARTNERS

Advocates & Solicitors

2nd floor, Block B-7-2-1

Megan Salak Park, Jalan 1/125E,

Desa Petaling,

57100 Kuala Lumpur

Tel Nos: 03-90593359

Fax No: 03-90503563

E-mail: mail@tglp.com.my

(Ref: 33510/IND/C/LTG/Vp)

 

  

  

  

 

JOINT VENTURE & SUPPLY AGREEMENT

THIS AGREEMENT is made the 17th day of April 2009

BETWEEN:

	
(A)

	
SS MICROBIAL SDN, BHD, (Company No, 843364-K) a company incorporated in Malaysia and having its address at No. 30, Jalan PJS 7/19, Bandar Sunway, 461 Petaling Jaya, Selangor Darul Ehsan (“SSM”);

and

	
(B)

	
FULL LEAD BIO-TECHNOLOGY (M) SDN. BHD. (Company No. 844666-P) a company incorporated in Malaysia and having its registered address at No. 25-5, Block H, Jalan PJU 1/37, Datarun Prima, 47301 Petaling Jaya, Selangor Darul Ehsan (“FLM”)

	
  

	
1.

	
Definitions and Interpretations

	
  

	
1.1

	
Definitions

In this Agreement, unless the context shall otherwise require, the following expressions shall have the following meanings:-

	
  

	
“Agreement”

	
means this Agreement and which supersedes all earlier arrangement, understanding and agreements, whether understood.

	
  

	
“D/day”

	
a day (excluding gazetted public holidays, Saturdays and Sundays) on which banks are open for business in Kuala Lumpur)

	
  

	
“C/commencement D/date”

	
means the commencement date of this agreement as set out in item 2 of Schedule 1

	
  

	
“C/confidential I/information”

	
means all information relating to SSM’s business and the Project, including inventions, discoveries (whether by SSM and / or its contractors, agents or associates), facts, data, ideas, manner, clientele, method of manufacture, method or principle of construction, chemical composition or formulation, techniques, products, prototypes, processes, names, know-how, routines, specifications, drawings, trade secrets, technology methods, computer programmes, works in respect to which copyright subsists and other knowledge, including names of clients, the programme course, such information obtained through observation, deduction, reasoning, inspection and overhearing in connection to the implementation of the Project or the programmes within the Project.

 

  

  

  

 

	
  

	
“C/contract”

	
means each Purchase Order made by SSM to FLM and which performance of each contract is governed by the terms of this Agreement unless otherwise agreed by the parties

	
  

	
“E/equipment P/price”

	
means the quotation provided by FLM for the suppy of the machineries, equipment and materials identified in FLM’s letter to SSM dated 30.3.2009 annexed to Schedule 3 of this dated Agreement.

	
  

	
“FLM”

	
means FULL LEAD BIO-TECHNOLOGY (M) SDN. BHD. (Co. No. 844666-P) with its registered address at No. 25-5, Block H, Jalan PJU 1/37, Dataran Prima, 47301 Petaling Jaya, Selangor and includes its successors in title and permitted assigns

	
  

	
“Goods”

	
means the quantity of goods described in each. Purchase Order raised by SSM to FLM which quality and specifications of the Goods ordered must confirm with the description of the Goods described in Schedule 2;

	
  

	
“SSM’

	
means SS MICROBIAL SDN. BHD. (Company No. 843364-K) a company incorporated in Malaysia with its registered address at No. 30, Jalan PJS 7/19, Bandar Sunway, 46150 Petaling Jaya, Selangor and its successors - in – title  and permitted assigns.

 

  

2

  

 

	
  

	
“P/plant’

	
means the factory (and in the future, factories in different parts of Malaysia and overseas) that is capable of converting waste materials into compost.

	
  

	
“P/process”

	
means the conversion of waste material into compost.

	
  

	
“P/project”

	
means the setting up and establishing SSM’s compost processing plant in a territory chosen by SSM, which at this time should be Malaysia.

	
  

	
“P/purchase O/order”

	
means an order for a specific number of Goods depending on SSM’s requirements from time to time placed with FLM pursuant to a Purchase Order for those goods and such contract shall be construed on the terms of this Agreement

	
  

	
“P/purpose”

	
means SSM has achieved the ability to produce compost for sale in any market it so wishes.

	
  

	
“Shareholders Agreement”

	
means the Agreement to be separately entered into between FLM or its nominee/s and the members of SSM with respect their contributions and duties towards SSM’s business and development of it’s business.

	
  

	
“S/system”

	
means the operation of the process by the factories or plants.

	
  

	
“T/technology”

	
means and includes the supply of the complete system which includes the machinery, equipment, transfer of technical know-how, support and repair of the equipment, that operates the system and generally to enable SSM to be able to operate the plant with minimal assistance from FLM.

	
  

	
“T/terms and C/conditions”

	
means the other terms and conditions of this Agreement more particularly set out in Schedule 4.

 

  

3

  

 

	
  

	
1.2

	
Interpretations

In this Agreement, unless inconsistent with or to the context:-

	
  

	
(a)

	
words importing persons shall include individual, firms and bodies corporate;

	
  

	
(b)

	
words importing the singular number or plural number shall be deemed to include the plural number or singular number respectively;

 

	
  

	
(c)

	
words importing any gender shall include all other genders as the case may require;

 

	
  

	
(d)

	
references to statutes, ordinances or regulations shall include any statutes, ordinance or regulations amending, consolidating or replacing the same and all subordinate or other legislation from time to time relating thereto or in connection therewith;

 

	
  

	
(e)

	
a reference to any clause, annexure or schedule shall be a reference to a clause, annexure or schedule of or to this Agreement;

 

	
  

	
(f)

	
where in this Agreement, the doing or execution or any act, matter or thing by FLM is dependent on the consent or approval of the SSM;

 

	
  

	
(g)

	
no rule of any construction applies to the disadvantage of a party because that party was responsible for the preparation of this Agreement or any part of it; and

 

	
  

	
(h)

	
the terms and conditions of this Agreement are to be read and interpreted together with the schedules and annexures or attachments attached which shall form an integral part of this Agreement.

 

	
  

	
3.

	
Date and Term

This Agreement shall commence from the Commencement date (unless it is mutually agreed otherwise) and shall continue to be in force until determined by the party/ies.

	
  

	
4.

	
Agreement

	
  

	
4.1

	
FLM will supply to SSM during the currency of this Agreement and for such periods of mutual extension thereof, the Goods set out in Schedule 2 (“the Goods”0 in the form, specifications (including packaging) and Price set out in Schedule 3 (“the Specifications”) in accordance with the provisons of this Agreement and / or elsewhere provided in any annexures to these Schedules. If the party/ies are not able to set out the Price in Schedule 3, it may be agreed either in the Purchase Orders or though correspondences between them.

 

  

4

  

 

	
  

	
4.2

	
FLM shall abide by all terms of this Agreement when supplying SSM the Goods requested in each Purchase Order.

 

	
  

	
4.3

	
A Contract comes into effect on the day a Purchase Order is issued to FLM by facsimile or electronic means, as evidenced by a transmission report generated by SSM’s dispatching terminal or by post , delivered to FLM at its known addresses for service of notice or electronically transmitted.

 

	
  

	
4.4

	
In addition to the terms of this Agreement, each Contract will also be based on the terms seen in Schedule 4. Any variation, waiver or cancellation of any Terms and Conditions of each Contract must be in writing and signed by SSM. If it is not signed by SSM, it shall not have any effect nor bind SSM.

 

	
  

	
5.

	
Price and Payout

	
  

	
5.1

	
FLM will supply the Goods during the currency of this Agreement at the price of the Goods set out in Schedule 5 (the “price/s”), as the context permits) or at such other price/s the party/ies may agree in writing in accordance with the terms of this Agreement.

	
  

	
5.2

	
The price quoted in the Agreement shall be binding on FLM for the duration of this Agreement and shall not be increased and / or varied without SSM’s express consent.

 

	
  

	
5.3

	
Notwithstanding Clause 5.2, FLM may request for a price review by giving SSM not less than one hundred and twenty (120) days prior written notice to such effect. FLM may only propose a price variation because of unforeseen significant cost increase beyond its control or for such other reason acceptable to SSM.  SSM’s decision whether the reasons forwarded by FLM to increase the cost shall be accepted FLM as final ad binding on the party/ies.

 

	
  

	
5.4

	
Payment of the Goods shall be within the number of days set out in item 3 of Schedule 1 form the date of an invoice/creditors statement from FLM or from Goods Received Notice (“GRN”) issued by SSM (whichever the later) unless otherwise agreed between the party/ies.

 

	
  

	
6.

	
Non-exclusive

	
  

	
6.1

	
The party/ies acknowledge that currently its not foreseeable that SSM will purchase from another source most of the equipment described in Schedule 3 and the microbial agent. However, if FLM is not able to provide the above items and the Technology to a satisfactory standard required by SSM, then, nothing in this Agreement shall impose upon SSM any obligation to purchase the Goods or any part of it and those items described above exclusively from FLM even during the validity of this Agreement.

 

  

5

  

 

	
  

	
7.

	
Termination

	
  

	
7.1

	
This Agreement may be immediately terminated by SSM upon the happening of any of the following events:

	
  

	
(a)

	
breach by non-performance and / or otherwise by FLM of any of the terms of this Agreement or any Contract of otherwise agreed to be performed and / or undertaken by FLM; or

	
  

	
(b)

	
if FLM shall pass a resolution for voluntary liquidation or winding up; or

 

	
  

	
(c)

	
a court of competent jurisdiction orders that FLM be wound up or placed in compulsory liquidation; or

 

	
  

	
(d)

	
if a receiver and / or manager is appointed over FLM; or

 

	
  

	
(e)

	
loss of the agency or franchise rights of the Goods or any part of it by FLM; or

 

	
  

	
(f)

	
an action, resolution or petition has been made or presented against FLM in respect of insolvency, distress and/or winding up proceedings; or

 

	
  

	
(g)

	
FLM enters into a scheme of arrangement under section 176 of the Companies act 1965 or such compromise agreement or scheme has been instituted against FLM; or

 

	
  

	
(h)

	
FLM is unable to pay its debts within the meaning of Section 218 of the Companies Act 1965; or

 

	
  

	
(i)

	
FLM enters into any composition or arrangement with or for the benefit of its creditors or a moratorium is agreed or declared in respect of or affecting all or any part of its borrowed moneys; or

 

	
  

	
(j)

	
FLM assigns or attempts to assign this Agreement without SSM’s written consent; or

 

	
  

	
(k)

	
if there is a change in the composition of contributories in FLM as at the date of this Agreement arising from any reason whether by compulsory acquisition, statutory, private sale, transfers or otherwise; or

 

	
  

	
(l)

	
if FLM were to change its business emphasis after the date of this Agreement for whatever reason; or

 

	
  

	
(m)

	
if FLM’s directorate and senior management changes after the date of this Agreement; or

  

6

  

 

	
  

	
(n)

	
there is a disruption in FLM’s service ability; or

 

	
  

	
(o)

	
if FLM does not provide the technology and / or technical support associated with the manufacturing equipment or Goods purchased by SSM for its manufacturing business; or

 

	
  

	
(p)

	
FLM is not able to meet the timelines to supply the Goods as required under this Agreement and / or each Contract arising from whatever reason; or

 

	
  

	
(q)

	
SSM is of the view that FLM’s ability to fulfill its obligations to it is compromised and / or jeopardized.

 

	
  

	
7.2

	
If FLM shall become unable, whether for reasons within or beyond its control, to fulfill its obligation to supply the Goods and / or provide the Technology or any part of it to SSM in accordance with any Purchase Order and / or under the terms of this Agreement and / or otherwise agreed, SSM shall be entitled to terminate this Agreement forthwith.

	
  

	
7.3

	
Notwithstanding anything to the contrary, SSM shall have the right to terminate this Agreement without assigning any reason, by serving thirty (30) days written notice to FLM.

 

	
  

	
7.4

	
Termination under this Clause shall be without prejudice to the fulfillment of Purchase Orders and the provision of Technology wholly or partially outstanding at the date of such termination and likewise shall not prejudice or affect any right of action or remedy which shall have accrued inter this Agreement to either party.

 

	
  

	
8.

	
Confidential Information & Intellectual Property Rights.

	
  

	
8.1

	
FLM Warrants that neither the sale nor the use of any of the Goods and / or equipment supplied under the provision of Technology will infringe any Malaysian or foreign patent, trademark, registered design, or other industrial or intellectual property rights whether or not similar to any of the foregoing.

	
  

	
8.2

	
FLM shall indemnify SSM from all actions, costs, claims, demands, expenses and liabilities whatsoever resulting from any actual or alleged infringement of Clause 8.1 on a total indemnity basis.

 

	
  

	
8.3

	
FLM recognizes that all and any information in relation to the process, style and manner of providing and implementing the progamme and the list of the clients are confidential information that belongs to SSM. The confidentiality of the information will only cease if SSM consents to the cessation or as provided in this Agreement.

  

7

  

 

	
  

	
8.4

	
The rules with respect the use of the confidential information may be further prescribed by SSM after the plant or its business is fully established and / or operational.

 

	
  

	
9.

	
Use of Goods & Technology

	
  

	
9.1

	
FLM shall indemnify and keep indemnified SSM fully at all times against all loss (not limited to financial loss but to include economic loss), actions, claims, demands, expenses and liabilities whatsoever which SSM may incur in engaging FLM’s services for the provision of the Technology and the Goods arising from whatever source, including the costs of defending any legal suits or proceedings taken against SSM, irrespective of whether such loss and / or damage was caused directly or indirectly by FLM, its employees or any of its authorized independent contractors, in respect of breach and / or infringement of intellectual property rights (including illicit use of confidential information), personal injury to or the death of any person or in respect of any loss or destruction of or damage to property (other than as a result of any default or neglect of SSM or of any person for whom SSM is responsible) which is allegedly attributable to some defect in the Goods or any part of it or in connection with any work with respect to the Technology, executed by FLM pursuant to this Agreement.

	
  

	
9.2

	
Should FLM use any personnel to execute any work on SSM’s premises, they shall be required to abide by the safety rules and other relevant regulations laid down by the relevant authorities and / or SSM from time to time. FLM shall indemnify SSM against all loss, actions, costs, claims, demands, expenses and liabilities whatsoever (if any) which SSM may incur (other than as a result or any default or neglect of SSM, or of any person for whom SSM is responsible) in respect of personal injury to, or the death of, any such employees, agents, sub-contractors or other representative while on SSM’s premises whether or not such persons are (at the time when such personal injury or deaths are caused) acting in the course or their employment.

 

	
  

	
9.3

	
FLM shall indemnify SSM against any and all loss, expenses and liabilities caused to SSM whether directly if the Goods (including the equipment and machineries supplied under the provision of Technology) breaches the Sale of Goods Act 1976 and / or the relevant provisions of the intellectual property statutes and / or the law with respect confidential information, arising from whatever source and from whichever jurisdiction.

 

	
  

	
10.

	
Technology & Technical Transfer

	
  

	
10.1

	
FLM undertakes to do whatever is necessary to enable SSM to set up, implement and operate the plant in such order and manner that the purpose is achieved.

	
  

	
10.2

	
Part of the Goods that will be ordered by SSM will comprise of machineries and equipment to construct the plant.

  

8

  

 

	
  

	
10.3

	
In addition to the provision of the equipment and machineries to set up the plant, FLM shall provide the necessary number of staffs and personal not only to commission the plant but also the requisite technical support for continued production by these machineries.

 

	
  

	
10.4

	
In addition to the above, FLM shall also implement a programme to transfer the know – how of maintaining and repairing the machineries that makes up the plant to the respective personnel nominated by SSM.

 

	
  

	
10.5

	
The more elaborate rules with respect the provision of the Technology by FLM is seen in Schedule 6.

	
  

	
11.

	
Miscellaneous

	
  

	
11.1

	
SSM has tentatively agreed to allow FLM to participate in its business as a member in SSM.

	
  

	
11.2

	
It is tentatively agreed between the party/ies that FLM will have a 20% participation in SSM’s first 3 plants and their membership participation in the subsequent plants will decrease accordingly to a mutually acceptable percentage of that plant’s issued paid up capital. The final amount in participation in this first plant and its terms of participation will be finalized as indicated in 11.3 below.

 

	
  

	
11.3

	
At the appropriate time SSM will negotiate with all its members and members - to - be the terms of their Shareholders Agreement.

 

	
  

	
11.4

	
Whether or not FLM ultimately becomes SSM’s member or not, FLM shall fulfill the terms of this Agreement until its determined or rescinded.

 

	
  

	
12.

	
Whole Agreement

	
  

	
12.1

	
This Agreement (together with any documents referred) shall constitute the whole agreement between the party/ies and it is expressly declared that no variation shall be effective unless made by the party/ies in writing.

	
  

	
13.

	
Further Assurance

	
  

	
13.1

	
The party/ies shall execute and do and procure all other necessary persons or companies, if any, to execute and do all such further deeds, assurance, act and things as may be reasonable) required so that full effect may be given to the terms and conditions of this Agreement.

 

  

9

  

 

	
  

	
14.

	
Notices.

	
  

	
14.1

	
Notices required or permitted to be given under this Agreement shall be in writing (in the English language) and shall be deemed to have been validity given to FLM or to SSM if delivered personally or sent by facsimile or registered post to the respective party at the address specified below or such other address as the recipient may have notified to the other party hereto in writing and if so given shall be deemed to have been received:-

	
  

	
(a)

	
in the case of a letter delivered by hand, upon its acknowledgement or receipt;

	
  

	
(b)

	
in the case of a letter sent by registered post, on the fifth (5th) day after posting;

 

	
  

	
(c)

	
in the case of a facsimile on the day the transmission note confirms delivery.

	
  

	
14.2

	
The addresses and facsimile numbers as set out in item 1 of Schedule 1.

SS MICROBIAL SDN BHD

	 	
Address:

	
No. 30, Jalan PJS 7/19, Bandar Sunway. 46150,

Petaling Jaya, Selangor Darul Ehsan

	 	
Attention: 

	
Mr. KE Lim

	 	
Telephone: 

	
03-56361869

	 	
Facsimile: 

	
03-56361771

E-Mail Address:  ssmicrobial@gmail.com

FULL LEAD BIO – TECHNOLOGY (M) SDN. BHD.

	 	
Address: 

	
No. 25-5, Block H, Jalan PJU 1/37. Dataran Prima

47301 Petaling Jaya, Selangor Darul Ehsan and No.6,

Jalan 14/155 Bujit Light Industrial Park

58100 Bukit OUG, Kuala Lumpur

	 	
Attention: 

	
Mr. Laurance Gan

 

	 	
Telephone: 

	
03-77856642

	 	
Facsimile: 

	
03-77856641

E-Mail Address: lganoh@gmail.com

 

	
  

	
15.

	
Costs

 

	
  

	
15.1

	
Save as otherwise provided in this Agreement, the stamp duty and all other costs and expenses in connection with or incidental to this Agreement shall be borne by SSM. If the party/ies are represented, then each party shall bear its own solicitors costs.

 

  

10

  

 

	
  

	
16.

	
Law and Enforcement

	
  

	
16.1

	
This Agreement shall be governed by the laws of Malaysia.

	
  

	
16.2

	
Any dispute, controvercy or claim arising out of or relating to this contract, or the breach, termination or invalitity thereof, shall be settled by arbitration in accordance with the UNCITRAL Arbitration Rules as a present in force.

	
  

	
17.

	
Time

	
  

	
17.1

	
Time shall be of the essence of this Agreement.

	
  

	
18.

	
Successors Bound

	
  

	
18.1

	
This Agreement shall be binding upon the successors in the title and permitted assigns of the respective party/ies.

	
  

	
19.

	
Severability

 

	
  

	
19.1

	
Any terms, conditions, stipulations, provision, covenants or undertaking in this Agreement which is illegal, void, prohibited, or unenforceable shall be innefective to the extent of such illegality, voidness, prohibition or unenforceability without invalidating the remaining provisions of the Agreement and any such illegality, voidness, prohibition or unenforceability shall not invalidate or render illegal, void or unenforceability shall not invalidate or render illegal, void or unenforceable or any other terms, conditions, stipulations, provision, covenants or undertaking contained in this Agreement.

	
  

	
20.

	
Assignment and sub-contracting

	
  

	
20.1

	
FLM shall not assign or transfer this Agreement or any Contract to any other person without the prior written consent of SSM.

	
  

	
20.2

	
Similarly, FLM shall not, without the prior written consent of SSM, sub-contract this Agreement or any Contract or any part of it.

	
  

	
21.

	
The Submission to Jurisdiction

	
  

	
21.1

	
The party/ies submit to the exclusive jurisdiction of the Kuala Lumpur Regional Centre for Arbitration nominated by SSM (in its absolute discretion without any obligation to assign any reason for its decision) in all matters connected with the obligation and liabilities of the party/ies under this Agreement.

  

11

  

 

SCHEDULE 1

 

 

	
1. SS MICROBIAL SDN BHD

	
No. 30, Jalan PJS 7/19, Bandar Sunway, 

46150, Petaling Jaya, 

Selangor Darul Ehsan

	
  

	
Telephone:  03-56361869

	
 

	
  

	
Facsimile:    03- 56361771

	
 

	
2. Full Lead Bio-Technology

	
No. 25-5, Block H, Jalan PJU 1/37

	
(M) Sdn. Bhd.

	
Dataran Prima, 47601 Petaling Jaya

Selangor and No. 6, Jalan 14/155,

Bukit Jalil Light Industrial Park 58100

Bukit OUG, Kuala Lumpur

	
  

	
Tel:   03-77856642

	
 

	
  

	
Fax:   03-77856641

 

 

	
2. Commencement Date

	
This 15th Day of April 2009

 

 

	
3. Credit Period

	
Depending on the items – these periods are generally indicated in the respective Schedules below.

 

 

 

 

[The remainder of this page in intentionally left blank]

  

12

  

SCHEDULE 2

The goods to be made available to SSM by FLM

	
  

	
1.

	
Currently these goods have been identified as-

 

	
  

	
(i)

	
the microbial agent required in the process; and

	
  

	
(ii)

	
the equipment, machineries and other materials annexed to the 3rd Schedule (FLM’s quotation letter).

	
  

	
2.

	
There may be further negotiations with respect the quantity and / or the types of goods and / or additional materials from time to time after the date of this Agreement.

[The remainder of this page is intentionally left blank]

  

13

  

 

SCHEDULE 3

The specification of the Goods

	
  

	
1.

	
The general description of the goods is in Schedule 2 above;

	
  

	
2.

	
In the case of the microbial agent, it will be described in greater detail in the respective purchase orders or in correspondences between the party/ies when either it’s time to order these goods or when the time nears for FLM to supply these agent to SSM;

	
  

	
3.

	
The machineries, materials and equipment described in FLM’s quotation letter in the 3rd Schedule are currently identified as the materials required to be installed in the plant to initiate the process;

	
  

	
4.

	
The equipment in the 3rd Schedule are not exhaustive nor definitive and the party/ies may vary these items (with respect its type, quantity and quality) to ensure the suitability of these machineries to achieve the successfully implantation of the process and the quality of the end – product required by SSM.

[The remainder of this page is intentionally left blank]

  

14

  

 

Full Lead Bio-Technology (M) Sdn. Bhd. (Co. No.: 844666-P)

No. 6, Jalan 14/155, Bukit Jalil Light Industrial Park, 58100 Bukit OUG, Kuala Lampur

Tel: 603-7785-6642                Fax: 603-7785-6641

 

	
Date

	
:

	
31st March 2009

	
Ref

	
:

	
Q290112-R

	  	  	  
	
To

	
:

	
SS Microbial Sdn. Bhd.

	  	  	
No. 30, Jalan PJS 7/19,

	  	  	
Bandar Sunway,

	  	  	
46150 Petaling Jaya,

	  	  	
Selangor D, Ehsan.

	  	  	  
	
Attn

	
:

	
Mr. K. E. Lim

	  	  	  
	
Re

	
:

	
Revised Quotation for Proposed PL-6000-L Organic Waste Treatment Factory

Dear Mr. Lim,

As per our previous meeting and discussion pertaining to the above, attached please find revised quotation of the same for your perusal as requested.

As previously discussed too, item 1 & 7 may be sourced locally, with item 6 may or may not be required at the initial factory start up operation as it greatly depends on the fertilizer’s packing option.

However, as highlighted in the previous quotation too, an Automatic Sieving System is advised available for the final sieving of any unwanted material like plastic, glass or any non-biodegradable matters from the final product.

Item 2, 3, 4, 5 & 8 are required for proper factory operation and none should be taken as an option.

Below please find quotation of the mentioned in “NTD Currency” for your kind perusal.

  

15

  

 

2 X PL-30000 for 80 ton capacity / 130 ton – 2 shifts / day

Unit: NTD (March 2009)

	
Item

	 	
Description

	 	
No.

	 	
Unit

	 	
Total Price

(NTD)

	
1

	 	
Weigh Bridge

	 	
1

	 	
System

	 	
900,000

	 	 	 	 	 	 	 	 	 
	
2

	 	
Fully automatic supply & delivery

System with the following:

Breaker / crusher (bits size to pre-determine)

	 	
 

 

1

	 	
 

 

System

	 	
 

 

11,600,000

	 	 	

Automatic supply & delivery feeder

	 	1	 	

System

	 	 
	 	 	 	 	 	 	 	 	 
	
3

	 	
Primary Microbial Fermentation System

with:

PL-30000 Main Fermentation Equipment

	 	
 

 

2

	 	
 

 

Sets

	 	
 

 

27,000,000

	 	 	 	 	 	 	 	 	 
	
4

	 	
Secondary Microbial Fermentation

System with:

Automatic mover &

Automatic stirring process equipment on open bed

	 	
 

 

 

1

	 	
 

 

 

System

	 	
 

 

 

19,800,000

	 	 	 	 	 	 	 	 	 
	
5

	 	
Anti odour equipment / system

	 	
1

	 	
Set

	 	
8,970,000

	 	 	 	 	 	 	 	 	 
	
6

	 	
Automatic fertilizer packing system with:

Automatic sorting system

Automatic sieving system (30-ton / day)

Automatic packing system

Dust Collector system

	 	
 

1

1

1

1

	 	
 

System

System

System

Set

	 	
 

 

5,200,000

	 	 	 	 	 	 	 	 	 
	
7

	 	
Bob cat

Tractor

Van

Truck

	 	
2

1

1

1

	 	
Unit

Unit

Unit

Unit

	 	
 

5,400,000

	 	 	 	 	 	 	 	 	 
	
8

	 	
Complete factory design and planning service

	 	
1

	 	
Lot

	 	
2,500,000

	 	 	 	 	 	 	 	 	 
	  	 	  	 	  	 	
Total

	 	
81,370,000

	
Note:

	
The above costs USD 2,426,058 based on current exchange rate of USD 1.00 = NTD 33.54

 

	
Payment Terms: 

	
Based on terms of payment stated as per contractAgreement

The above is without the cost of land, structure, office set up and other factory or building structural set up costs

Thank you and best regards

Yours sincerely,

For Full Lead Bio-Technology (M) Sdn. Bhd,

Laurance Gan

(h/p : 016-331-5803)

email :lgan@streamyx.com

 

  

16

  

SCHEDULE 4

Terns and Condition of Sale

	
A.

	
With respect the equipment, machineries and materials indicated in FLM’s letter annexed to the 3rd Schedule.

	
1.

	
The equipment price (listed in the 3rd Schedule) is agreed at NTD $81,370,000.00 million;

 

	
2.

	
SSM will pay the equipment price in the following manner –

	
  

	
(a)

	
on the signing of this Agreement a sum of RM500,000.00;

	
  

	
(b)

	
before or by the expiry of 6 months from the date of this Agreement, a sum equivalent to 30% of the equipment price (including the payments in sub – paragraph (a) above);

 

	
  

	
(c)

	
another 50% of the equipment price (excluding the payment in sub – paragraph (c) above) before shipment of the equipment;

 

	
  

	
(d)

	
the final 20% of the equipment price (excluding the payments in sub – paragraphs (b) and (c) above) upon commissioning of the system.

 

	
3. 

	
This Agreement will only be effective once the payment in Clause 2(a) is made by SSM.

	
4.

	
The party/ies have agreed at an exchange rate for NTD and USD at USD $1 to NTD $33.54 and if the USD is purchased directly with Ringgit, the exchange rate will be USD $1 to RM 3.70.

	
5.

	
If however, there are changes in the quantities and / or types of goods to be supplied by FLM, the party/ies will re – negotiate the terms of supply of these items to implement the plant.

	
B.

	
The supply of microbial agent

	
1.

	
The agreed price for the supply of this material is RM48.50 per kilogram (to SSM’s choice of destination/s);

 

	
2.

	
The above price is fixed for a period of 3 years beginning from FLM’s first supply of this item;

	
3.

	
The terms of payment will be determined when SSM raises purchase orders to FLM;

	
4.

	
The price of this material will follow the market rate once the fixed term in sub – clause 2 above has expired.

 

 

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17

  

 

SCHEDULE 5

The Price of the Goods

	
1. 

	
The price / s for the goods are seen in Schedule 4 above;

	
2.

	
Although, currently not foreseeable, the prices of these goods may vary or alter with the passing of time and when SSM’s needs are better identified after the plant is operational and when SSM begins selling its end produce.

 

 

[The remainder of this page is intentionally left blank]

  

18

  

 

SCHEDULE 6

 

The duties to be performed by FLM in the provision of the Technology to SSM until otherwise determined or mutually rescinded shall be for 15 years with an option to SSM to extend the supply timeline for another 5 years from its initial expiry, of the following matters and / or materials :-

	
1. 

	
the supply of the microbial agent; and

	
2.

	
to provide and / or supply the latest and most applicable equipment and machineries in the implementation and operation of the system; and

	
3.

	
to continually improve the process through upgrades of the equipment and materials supplied; and

	
4.

	
to provide the latest technology and / or procedure and / or method of operating the equipment and machineries that forms the system;

	
5.

	
to continually provide SSM with the necessary materials and ingredients to manufacture the compost or such end product that the machines and equipment supplied is to achieve;

	
6.

	
to ensure SSM’s support staff will be able to maintain the equipment and machineries that forms the plant within the shortest time possible.

[The remainder of this page is intentionally left blank]

  

19

  

IN WITNESS the duly authorized representatives of the party/ies have set their hands the day and year first written above.

	
Signed by LIM KOK ENG

	
)

	
for and behalf

	
)

	
SS Microbial Sdn. Bhd.

	
)

	
(Company No. 843364-K)

	
)

	
in the presence of :-

	
)

	
Signed by LAURANCE GAN

	
)

	
OON HIM

	
)

	
for and behalf

	
)

	
FULL LEAD BIO-TECHNOLOGY

	
)

	
(M) SDN. BHD. (Company No

	
)

	
844666-P)

	
)

	
in the presence of :-

	
)

 

 

20

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