Document:

Exhibit 10.12

 

THIRD AMENDMENT TO OFFICE LEASE

 

This Third Amendment to Office Lease (this “Third Amendment”) is made and entered into by and between ASP, Inc., the managing partner of Boulder Tower Tenants in Common (“Landlord”), and HELMERICH & PAYNE, INC., a Delaware Corporation (the “Tenant”), effective on and as of the date on which Tenant executes this Third Amendment, as set forth on the signature page (the “Effective Date”).

 

W I T N E S SETH

 

WHEREAS, Landlord and Tenant previously entered into that certain Office Lease dated May 30, 2003, as amended by First Amendment to the Lease dated May 23, 2008 and Second Amendment to Lease dated December 13, 2011 (“Lease”), pursuant to which Landlord leases to Tenant certain premises totaling 168,868 rentable square feet in the building commonly known as Boulder Towers (the “Building”), located at 1437 South Boulder, Tulsa, Oklahoma 74119 (the “Existing Premises”); and

 

WHEREAS, Landlord and Tenant desire to expand the Premises, amend certain other terms of the Lease, and provide lease terms for the Fourth Amendment to Office Lease, all as more particularly provided hereinbelow;

 

NOW, THEREFORE, pursuant to the foregoing, and in consideration of the mutual covenants and agreements contained in the Lease and herein, the Lease is hereby modified and amended as set out below:

 

1.                                      Definitions.  All capitalized terms used herein shall have the same meaning as defined in the Lease, unless otherwise defined in this Third Amendment.  The recitals above are incorporated herein by reference.

 

2.                                      Expansion Space.  Landlord and Tenant hereby confirm, stipulate and agree that, effective October 1, 2012 (or at such earlier time as Tenant occupies the Sixth Floor Expansion Space), the Existing Premises shall be expanded to include an additional 4,709 contiguous rentable square feet of office space (the “Sixth Floor Expansion Space”) as described on Exhibit “A” attached hereto.  Except as otherwise provided in paragraph five of this Third Amendment, the term for the Sixth Floor Expansion Space shall expire on the later of March 31, 2015 or 30 days after substantial completion of Tenant improvements in the office space covered by the Fourth Amendment to Office Lease.  The Annual Rental for the Sixth Floor Expansion Space payable by Tenant under the Lease shall be as follows:

 

	
Square Footage
    	
 
    	
Price/RSF
    	
 
    	
Annual Rent
    	
 
    	
Monthly Installment
    	
 
    
	
4,709
    	
 
    	
$
    	
12.00
    	
 
    	
$
    	
56,508.00
    	
 
    	
$
    	
4,709.00
    	
 
    
											

 

Landlord shall deliver the Sixth Floor Expansion Space “AS IS” in its current condition except as follows:

 

On or before September 1, 2012, Landlord, at its sole cost, shall (i) replace all cracked window film on exterior windows and (ii) install “cool white” lamps in the space outlined in red on the attached Exhibit “A”.

 

Tenant may, at its sole cost, remodel any portion of the Sixth Floor Expansion Space other than the primary entrance and existing reception area, with Landlord’s written approval which shall not be unreasonably withheld.  With the Sixth Floor Expansion Space, the total rentable square feet of the

 

 

Leased Premises is 173,577 rentable square feet and the total rentable area of the Building is 521,802 rentable square feet.

 

3.                                      Parking.  With respect to the Sixth Floor Expansion Space, Landlord shall provide Tenant with fourteen (14) parking spaces, including two (2) reserved covered spaces in the attached parking structure and twelve (12) on a non-reserved basis on the existing surface lots.  After giving effect to the preceding sentence, Tenant shall have a total of four-hundred sixty-seven (467) parking spaces, which shall consist of one hundred twelve (112) reserved covered spaces in the attached parking structure and three hundred fifty-five (355) on a non-reserved basis on the existing surface lots. These spaces are free of charge. At the end of the lease term for the Sixth Floor Expansion Space the reserved parking spaces and the non-reserved parking spaces attributable thereto shall be surrendered along with the Sixth Floor Expansion Space.

 

4.                                      Tenant’s Share and Operating Expense Base. Tenant’s Share attributable to the Sixth Floor Expansion Space shall be 0.90%. Tenant’s Share attributable to the entire Leased Premises after the addition of the Sixth Floor Expansion Space shall be 33.26%; provided, however, with respect to the Sixth Floor Expansion Space, Tenant shall pay no Operating Expenses for calendar 2012.  The Operating Expense Base for the Sixth Floor Expansion Space shall mean the amount of Operating Expenses for the calendar year 2012.  The 5% cap on increases in Tenant’s Share attributable to the Sixth Floor Expansion Space as to increases in Operating Expenses, as set forth in Section 4.02(g) of the H&P Lease, shall be applicable to the Sixth Floor Expansion Space and Tenant’s Share shall be made in reference to the base amount established in 2013.

 

5.                                      Eighth Floor Space.  The parties hereto acknowledge that Suite 850 (west wing of eighth floor) of the Building, which contains 6,319 rentable square feet, is presently leased to another tenant (“Existing Tenant”) through July 31, 2014 (the “Eighth Floor Space”).  The Landlord and Tenant agree to cause their duly authorized representatives to execute the Fourth Amendment to Office Lease in form identical to Exhibit “B” on the later of August 1, 2014 or the date that the Existing Tenant vacates the Eighth Floor Space subject to the terms of this paragraph 5.  In the event the Existing Tenant holds over past July 31, 2014, Landlord shall use its best efforts to vacate the Existing Tenant from the Eighth Floor Space.  In the event Landlord is unable to vacate Existing Tenant from the Eighth Floor space by December 31, 2014, then Tenant shall have the continuing right thereafter, upon written notice, to terminate its obligation to lease the Eighth Floor Space, provided that such notice is received by Landlord prior to the vacation of Existing Tenant from the Eighth Floor Space.  If Tenant terminates its obligation to lease the Eighth Floor Space as described above, then Tenant shall have 60 days from the date of its termination notice to provide Landlord its written election to extend the term of this Third Amendment.

 

Notwithstanding anything to the contrary in this Third Amendment, Tenant shall have the right to provide Landlord its written election to extend the term of this Third Amendment conditional upon Landlord receiving such election on or before January 31, 2015.  In the event that Tenant elects to extend this Third Amendment as described in this paragraph 5, the (i) per square foot rent and lease term then applicable to the Existing Premises shall also apply to the Sixth Floor Expansion Space and (ii) Landlord will provide Tenant a $9.60 per square foot Tenant Improvement Allowance totaling $45,206.40 to reduce the cost of Tenant Improvements to be constructed in the Leased Premises (in the manner set forth in Exhibit “B” of the Lease).

 

6.                                      Authority. Each of Landlord and Tenant represents and warrants to the other that the execution, delivery and performance of this Third Amendment by such party is within the requisite power of such party, has been duly authorized and is not in contravention of the terms of such party’s organizational or governmental documents.

 

 

7.                                      Binding Effect. Each of Landlord and Tenant further represents and warrants to the other that this Third Amendment, when duly executed and delivered, will constitute a legal, valid, and binding obligation of Tenant, Landlord and all owners of the Building, fully enforceable in accordance with its respective terms, except as may be limited by bankruptcy, moratorium, arrangement, receivership, insolvency, reorganization or similar laws affecting the rights of creditors generally and the availability of specific performance or other equitable remedies.

 

8.                                      Successors and Assigns.  This Third Amendment will be binding on the parties’ successors and assigns.

 

9.                                      Brokers.  Tenant warrants that it has had no dealings with any broker or agent other than CB Richard Ellis/Oklahoma (the “Broker”) in connection with the negotiation or execution of this Third Amendment.  Landlord shall indemnify and hold Tenant harmless from and against any cost, expense or liability for commissions or other compensation or charges of Broker.  Tenant agrees to indemnify Landlord and hold Landlord harmless from and against any and all costs, expenses or liability for commissions or other compensations or charges claimed to be owed by Tenant to any broker or agent, other than Broker, with respect to this Third Amendment or the transactions evidenced hereby.

 

10.                               Amendments.  With the exception of those terms and conditions specifically modified and amended herein, the Lease shall remain in full force and effect in accordance with all its terms and conditions. In the event of any conflict between the terms and provisions of this Third Amendment and the terms and provisions of the Lease, the terms and provisions of this Third Amendment shall supersede and control.

 

11.                               Counterparts.  This Third Amendment may be executed in any number of counterparts, each of which shall be deemed an original, and all of such counterparts shall constitute one agreement. To facilitate execution of this Third Amendment, the parties may execute and exchange facsimile counterparts of the signature pages and facsimile counterparts shall serve as originals.

 

12.                               Disclosure.  Members of the Boulder Towers Tenants in Common are licensed real estate brokers in the State of Oklahoma and are affiliated with Commercial Realty, LLC dba CB Richard Ellis|Oklahoma; they are also partners in Boulder Towers Tenants in Common, the Landlord.

 

[SIGNATURE PAGE TO FOLLOW]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment to be effective as of the day and year as set forth above.

 

	
 
    	
 
    	
LANDLORD:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: ASP, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Managing Partner of
    
	
 
    	
 
    	
Boulder Towers Tenants in Common
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:  William H. Mizener
    
	
 
    	
 
    	
Title:    President
    
	
 
    	
 
    	
Date Executed:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Helmerich & Payne, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:  Steven R. Mackey
    
	
 
    	
 
    	
Title:    Executive Vice   President
    
	
 
    	
 
    	
Date Executed:
    	
 
    
					

 

 

Exhibit “X”

 

 

[insert space diagram]

 

 

Suite 660, 6th Floor 
 4,709 Total RSF

 

 

Exhibit “B”

To Third Amendment to Office Lease

 

FOURTH AMENDMENT TO OFFICE LEASE

 

This Fourth Amendment to Office Lease (this “Fourth Amendment”) is made and entered into by and between ASP, Inc., the managing partner of Boulder Tower Tenants in Common (“Landlord”), and HELMERICH & PAYNE, INC., a Delaware Corporation (the “Tenant”), effective on and as of the date on which Tenant executes this Fourth Amendment, as set forth on the signature page (the “Effective Date”).

 

W I T N E S SETH

 

WHEREAS, Landlord and Tenant previously entered into that certain Office Lease dated May 30, 2003, as amended by that certain First Amendment to the Lease dated as of May 23, 2008 and Second Amendment to Lease dated December 13, 2011 (“Lease”); pursuant to which Landlord leases to Tenant certain premises totaling 168,868 rentable square feet in the building commonly known as Boulder Towers (the “Building”), located at 1437 South Boulder, Tulsa, Oklahoma 74119 (the “Existing Premises”); and

 

WHEREAS, Landlord and Tenant entered into a Third Amendment to Office Lease dated August of 2012 (“Third Amendment”) to which this Fourth Amendment to Office Lease (“Fourth Amendment”) was attached as Exhibit “B”.

 

WHEREAS, the Third Amendment terminated simultaneously with the Landlord and Tenant’s execution of this Fourth Amendment.

 

WHEREAS, Landlord and Tenant desire to expand the Premises, and amend certain other terms of the Lease, all as more particularly provided hereinbelow;

 

NOW, THEREFORE, pursuant to the foregoing, and in consideration of the mutual covenants and agreements contained in the Lease and herein, the Lease is hereby modified and amended as set out below:

 

1.                                      Definitions.  All capitalized terms used herein shall have the same meaning as defined in the Lease, unless otherwise defined in this Fourth Amendment.

 

2.                                      Expansion Space.  Landlord and Tenant hereby confirm, stipulate and agree that the Existing Premises shall be expanded as of the Term Commencement Date (“TCD”), to include an additional 6,319 rentable square feet of office space (the “Eighth Floor Expansion Space”) as described on Exhibit “A” attached hereto.

 

With such Eighth Floor Expansion Space, the total rentable square feet of the Leased Premises is 175,187 rentable square feet and the total rentable area of the Building is 521,802 rentable square feet.

 

 

3.                                      Tenant’s Share and Operating Expense Base. Tenant’s Share attributable to the Expansion Space shall be 1.21%. Tenant’s Share attributable to the entire Leased Premises after the addition on the TCD of the Expansion Space shall be 33.57%; provided however, with respect to the Expansion Space, Tenant shall pay no Operating Expenses for calendar 2014 or for that portion of calendar 2015 prior to the TCD.  The Operating Expense Base for the Expansion Space shall mean the amount of Operating Expenses for the calendar year 2015. From and after the TCD, the 5% cap on increases in Tenant’s Share attributable to the Expansion Space as to increases in Operating Expenses, as set for the in Section 4.02(g) of the H&P Lease, shall be applicable to the Expansion Space and Tenant’s Share shall be made in reference to the base amount established in 2015.

 

4.                                      Rent and Term.  The per square foot rental rate and lease term applicable to the Existing Premises on the TCD shall also apply to the Eighth Floor Expansion Space.  The Rent for the Eighth Floor Expansion Space shall commence on the earlier of Substantial Completion or ninety (90) days after Landlord delivers the space to Tenant.

 

5.                                      Tenant Improvement Allowance.  The Landlord shall provide Tenant a $10.66 per rentable square foot Tenant Improvement Allowance totaling $67,361.00 to reduce the cost of Tenant Improvements to be constructed in the Expansion Space (in the same manner as set forth in Exhibit B of the Lease), inclusive of demolition, above ceiling modification, preliminary space planning and construction documents and construction.  Landlord shall timely pay the cost of Tenant Improvements up to the amount of the Tenant Improvement Allowance.  In the event that the total cost of Tenant Improvements is less than the Tenant Improvement Allowance, then the balance shall be used by Tenant to improve any area of the Leased Premises as long as the improvements are completed within two (2) years from the TCD.  In the event that the total cost of Tenant Improvements is more than the Tenant Improvement Allowance, then Tenant shall pay such excess costs when such amounts become due and owing to the contractors.

 

6.                                      Parking.  With respect to the Expansion Space, the Landlord shall provide Tenant nineteen (19) parking spaces, including three (3) reserved covered spaces in the attached parking structure and sixteen (16) on a non-reserved basis on the existing surface lots. As of the TCD, Tenant shall have a total of four hundred seventy-two (472) parking spaces, which shall consist of one hundred thirteen (113) reserved covered spaces in the attached parking structure and three hundred fifty-nine (359) on a non-reserved basis on the existing surface lots. These spaces are free of charge.  Notwithstanding the foregoing, in the event Tenant elects to extend the term of the Sixth Floor Expansion Space as described in paragraph 5 of the Third Amendment to Office Lease, then Tenant shall possess a total of four hundred eighty-six (486) parking spaces, including one hundred fifteen (115) reserved covered spaces in the attached parking structure and three hundred seventy-one (371) on a non-reserved basis on the existing surface lots.

 

7.                                      Authority. Each of Landlord and Tenant represents and warrants to the other that the execution, delivery and performance of this Fourth Amendment by such party is within the requisite power of such party, has been duly authorized and is not in contravention the terms of such party’s organizational or governmental documents.

 

8.                                      Binding Effect. Each of Landlord and Tenant further represents and warrants to the other that this Fourth Amendment, when duly executed and delivered, will constitute a legal, valid, and binding obligation of Tenant, Landlord and all owners of the Building, fully enforceable in accordance with its respective terms, except as may be limited by bankruptcy, moratorium, arrangement,

 

 

receivership, insolvency, reorganization or similar laws affecting the rights of creditors generally and the availability of specific performance or other equitable remedies.

 

9.                                      Successors and Assigns.  This Fourth Amendment will be binding on the parties’ successors and assigns.

 

10.                               Brokers.  Tenant warrants that it has had no dealings with any broker or agent other than CB Richard Ellis/Oklahoma (the “Broker”) in connection with the negotiation or execution of this Fourth Amendment.  Landlord shall indemnify and hold Tenant harmless from and against any cost, expenses or liability for commissions or other compensation or charges of Broker.  Tenant agrees to indemnify Landlord and hold Landlord harmless from and against any and all costs, expenses or liability for commissions or other compensations or charges claimed to be owed by Tenant to any broker or agent, other than Broker, with respect to this Fourth Amendment or the transactions evidenced hereby.

 

11.                               Amendments.  With the exception of those terms and conditions specifically modified and amended herein, the Lease shall remain in full force and effect in accordance with all its terms and conditions. In the event of any conflict between the terms and provisions of this Fourth Amendment and the terms and provisions of the Lease, the terms and provisions of this Fourth Amendment shall supersede and control.

 

12.                               Counterparts.  This Fourth Amendment may be executed in any number of counterparts, each of which shall be deemed an original, and all of such counterparts shall constitute one agreement. To facilitate execution of this Fourth Amendment, the parties may execute and exchange facsimile counterparts of the signature pages and facsimile counterparts shall serve as originals.

 

13.                               Disclosure.  Members of the Boulder Towers Tenants in Common are licensed real estate brokers in the State of Oklahoma and are affiliated with Commercial Realty, LLC dba CB Richard Ellis|Oklahoma; they are also partners in Boulder Towers Tenants in Common, the Landlord.

 

[SIGNATURE PAGE TO FOLLOW]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Fourth Amendment to be effective as of the day and year as set forth above.

 

	
 
    	
 
    	
LANDLORD:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: ASP, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Managing Partner of
    
	
 
    	
 
    	
Boulder Towers Tenants in Common
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:  William H. Mizener
    
	
 
    	
 
    	
Title:    President
    
	
 
    	
 
    	
Date Executed:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Helmerich & Payne, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:  Steven R. Mackey
    
	
 
    	
 
    	
Title:    Executive Vice   President
    
	
 
    	
 
    	
Date Executed:China Biologic Products Inc.: Exhibit 4.1 - Filed by newsfilecorp.com

Exhibit 4.1 

 

	 
	PREFERRED SHARES RIGHTS AGREEMENT 
	Dated as of November 20, 2012 
	  
	  
	  
	CHINA BIOLOGIC PRODUCTS, INC. 
	  
	and 
	  
	SECURITIES TRANSFER CORPORATION
	as Rights Agent 
	 

 

TABLE OF CONTENTS 

	 	Page 
	Section 1. Certain Definitions 	1 
	Section 2. Appointment of Rights Agent 	9 
	Section 3. Issuance of Rights Certificates
    	9 
	Section 4. Form of Rights Certificates 	11 
	Section 5. Countersignature and
      Registration 	12 
	Section 6. Transfer, Split Up, Combination and Exchange of
      Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights
      Certificates 	13 
	Section 7. Exercise of Rights; Exercise
      Price; Expiration Date of Rights 	14 
	Section 8. Cancellation and Destruction of Rights
      Certificates 	16 
	Section 9. Reservation and Availability of
      Preferred Shares 	17 
	Section 10. Record Date for Securities Issued 	18 
	Section 11. Adjustment of Exercise Price,
      Number and Kind of Shares or Number of Rights 	19 
	Section 12. Certificate of Adjusted Exercise Price or
      Number of Shares 	25 
	Section 13. Consolidation, Merger or Sale
      or Transfer of Assets, Cash Flow or Earning Power 	26 
	Section 14. Fractional Rights and Fractional Shares 	29 
	Section 15. Rights of Action 	30 
	Section 16. Agreement of Rights Holders 	31 
	Section 17. Holders of Rights Certificate
      Not Deemed to be Stockholders 	32 
	Section 18. Concerning the Rights Agent 	32 
	Section 19. Merger, Consolidation or Change
      of Name of Rights Agent 	33 
	Section 20. Duties of Rights Agent 	33 
	Section 21. Change of Rights Agent 	36 
	Section 22. Issuance of New Rights Certificates 	37 
	Section 23. Redemption 	38 
	Section 24. Exchange 	39 
	Section 25. Notice of Certain Events 	41 
	Section 26. Notices 	42 
	Section 27. Supplements and Amendments 	43 
	Section 28. Successors 	43 
	Section 29. Determinations and Actions by
      the Board 	43 
	Section 30. Benefits of this Agreement 	44 
	Section 31. Severability 	44 
	Section 32. Governing Law; Exclusive Jurisdiction 	44 
	Section 33. Counterparts 	45 
	Section 34. Descriptive Headings; Interpretation 	45 
	Section 35. Costs of Enforcement 	46 
	Section 36. Force Majeure 	46 
	Section 37. USA PATRIOT Act 	46 

-i- 

TABLE OF CONTENTS 
(continued) 

			
    Page 

	EXHIBITS 	  	 
	  	  	 
	Exhibit A        	Form of Certificate of
      Designation of Rights, Preferences and Privileges of Series A
      Participating Preferred Stock 	A-1
	Exhibit B 	Form of Rights Certificate 	B-1
	Exhibit C 	Form of Summary of Rights 	
    C-1

-ii- 

PREFERRED SHARES RIGHTS AGREEMENT 

This PREFERRED SHARES RIGHTS AGREEMENT (this
“Agreement”), dated as of November 20, 2012, is by and between China
Biologic Products, Inc., a Delaware corporation (the “Company”), and
Securities Transfer Corporation, a Texas corporation, as rights agent (the “Rights Agent”). All capitalized terms
that are used in this Agreement shall have the respective meanings given thereto
in Section 1. 

RECITALS 

WHEREAS, on November 19, 2012 (the “Rights Dividend
Declaration Date”), the Board of Directors of the Company (the
“Board”) adopted this Agreement and authorized and declared a dividend of
one preferred share purchase right (each, a “Right,” and collectively,
the “Rights”) for each Common Share outstanding as of the Close of
Business on November 30, 2012 (the “Record Date”), each Right initially
representing the right to purchase one one-thousandth of a Preferred Share (as
such number may be adjusted pursuant to the provisions of this Agreement) and
having the rights, preferences and privileges set forth in the form of
Certificate of Designation of Rights, Preferences and Privileges of Series A
Participating Preferred Stock attached hereto as Exhibit A, upon the terms and
subject to the conditions set forth herein; and 

WHEREAS, the Board further authorized and directed the issuance
of one Right (as such number may be adjusted pursuant to the provisions of this
Agreement) with respect to each Common Share that becomes outstanding (whether
as an original issuance or from the Company’s treasury) between the Record Date
and the earlier of the (a) Distribution Date and (b) Expiration Date, and in
certain circumstances after the Distribution Date. 

AGREEMENT 

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

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

(a)            “Acquiring Person” means any Person who or that,
together with all Affiliates and Associates of such Person, is the Beneficial
Owner of the Triggering Percentage or more of the Common Shares then
outstanding, but shall not include (i) any Exempt Person or (ii) any
Grandfathered Person unless and until such time as such Person shall become the
Beneficial Owner of additional Common Shares representing two percent (2%) or
more of the Common Shares then outstanding in addition to the Common Shares
Beneficially Owned by such Grandfathered Person as of the Rights Dividend
Declaration Date (the “Grandfathered Common Shares”) without the prior
written approval of the Board. For the avoidance of doubt, in no event shall a
Grandfathered Person be deemed as an Acquiring Person if and to the extent such
Grandfathered Person becomes the Beneficial Owner of additional Common Shares in
addition to its Grandfathered Common Shares with prior written approval of the
Board.

Notwithstanding the foregoing, no Person will be deemed to be
an Acquiring Person as the result of an acquisition of Common Shares by an
Exempt Person that, by reducing the number of Common Shares then outstanding, increases the proportionate
number of Common Shares that are Beneficially Owned by such Person to the
Triggering Percentage or more of the Common Shares then outstanding;
provided, however, that if a Person becomes the Beneficial Owner of
the Triggering Percentage or more of the Common Shares then outstanding solely
as the result of a reduction in the number of Common Shares then outstanding due
to an acquisition of Common Shares by an Exempt Person and, after such
acquisition by such Exempt Person, becomes the Beneficial Owner of one or more
additional Common Shares (other than pursuant to a dividend or distribution paid
or made by the Company on the outstanding Common Shares in Common Shares or
pursuant to a split or subdivision of the outstanding Common Shares), then such
Person will be deemed to be an Acquiring Person unless, upon becoming the
Beneficial Owner of such additional Common Shares, such Person does not
Beneficially Own the Triggering Percentage or more of the Common Shares then
outstanding. Notwithstanding the foregoing, if the Board determines in good
faith that a Person who would otherwise be an Acquiring Person has become such
inadvertently (including because (A) such Person was unaware that it
Beneficially Owned a percentage of the Common Shares that would otherwise cause
such Person to be an Acquiring Person or (B) such Person was aware of the extent
of the Common Shares that it Beneficially Owned but had no actual knowledge of
the consequences of such Beneficial Ownership pursuant to this Agreement) and
without any intention of changing or influencing control of the Company, and if
such Person divested or divests (including by entering into an agreement with
the Company, which agreement is satisfactory to the Board in its sole
discretion, to divest and subsequently divests in accordance with the terms of
such agreement, without exercising or retaining any power, including voting
power, with respect to such Common Shares) as promptly as practicable a
sufficient number of Common Shares so that such Person would no longer be an
Acquiring Person, then such Person will not be deemed to be or to have become an
Acquiring Person at any time for any purposes of this Agreement.

For all purposes of this Agreement, any calculation of the
number of Common Shares outstanding at any particular time, including for
purposes of determining the particular percentage of the outstanding Common
Shares of which any Person is the Beneficial Owner, will include the number of
Common Shares not outstanding at the time of such calculation that such Person
is otherwise deemed to Beneficially Own for purposes of this Agreement, but the
number of Common Shares not outstanding that such Person, together with all
Affiliates and Associates of such Person, is otherwise deemed to Beneficially
Own for purposes of this Agreement will not be deemed to be outstanding for the
purpose of computing the percentage of outstanding Common Shares owned by any
other Person. 

(b)            “Adjustment Shares” has the meaning set forth in
Section 11(a)(ii). 

(c)            “Affiliate” and “Associate” have the
respective meanings ascribed to such terms in Rule 12b-2 of the General Rules
and Regulations promulgated under the Exchange Act, as in effect on the Rights
Dividend Declaration Date. 

(d)            “Agreement” has the meaning set forth in the
preamble hereto. 

(e)            A Person will be deemed the “Beneficial Owner” of,
and will be deemed to “Beneficially Own,” any securities: 

-2- 

(i)            that such Person or any of such Person’s Affiliates or
Associates, directly or indirectly, owns or has the legal, equitable or
contractual right or obligation to acquire (whether directly or indirectly and
whether exercisable immediately or only after the passage of time, compliance
with regulatory requirements, satisfaction of one or more conditions (whether or
not within the control of such Person) or otherwise) (A) pursuant to any
agreement, arrangement or understanding whether or not in writing (other than
customary agreements with and between underwriters and selling group members
with respect to a bona fide public offering of securities); (B) upon the
exercise of any conversion rights, exchange rights, rights (other than the
Rights), warrants or options, or otherwise; (C) pursuant to the power to revoke
a trust, discretionary account or similar arrangement; (D) pursuant to the power
to terminate a repurchase or similar so-called “stock borrowing” agreement,
arrangement or understanding; or (E) pursuant to the automatic termination of a
trust, discretionary account or similar arrangement; provided,
however, that a Person will not be deemed pursuant to this Section
1(e)(i) to be the Beneficial Owner of, or to Beneficially Own, securities (1)
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; (2) issuable upon the exercise
of Rights at any time prior to the occurrence of a Triggering Event; (3)
issuable upon the exercise of Rights from and after the occurrence of a
Triggering Event if such Rights were acquired by such Person or any of such
Person’s Affiliates or Associates prior to the Distribution Date or pursuant to
Section 3(a) or Section 22 (the “Original Rights”) or pursuant to Section
11(h) in connection with an adjustment made with respect to any Original Rights;
or (4) that a Person or any of such Person’s Affiliates or Associates may be
deemed to have the right to acquire pursuant to any merger or other acquisition
agreement between the Company and such Person (or one or more of its Affiliates
or Associates), or any tender, voting or support agreement entered into by such
Person (or one or more of its Affiliates or Associates) in connection therewith,
if such agreement has been approved by the Board prior to there being an
Acquiring Person; 

(ii)            that such Person or any of such Person’s Affiliates or
Associates, directly or indirectly, has the right to vote (including the power
to vote or to direct the voting of) or dispose (or direct the disposition) of or
has “beneficial ownership” of (as determined pursuant to Rule 13d-3 of the
General Rules and Regulations promulgated under the Exchange Act, as in effect
on the Rights Dividend Declaration Date), including pursuant to any agreement,
arrangement or understanding whether or not in writing; provided,
however, that a Person will not be deemed the Beneficial Owner of, or to
Beneficially Own, any security pursuant to this Section 1(e)(ii) as a result of
an agreement, arrangement or understanding whether or not in writing to vote
such security if such agreement, arrangement or understanding (A) arises solely
from a revocable proxy or consent given to such Person in response to a public
proxy or consent solicitation made pursuant to, and in accordance with, the
applicable provisions of the General Rules and Regulations promulgated under the
Exchange Act; and (B) is not also then reportable by such Person on Schedule 13D
pursuant to the Exchange Act (or any comparable or successor report); 

(iii)           that are Beneficially Owned, directly or indirectly, by
any other Person (or any of such Person’s Affiliates or Associates) with which
such first Person (or any of such first Person’s Affiliates or Associates) has
any agreement, arrangement or understanding whether or not in writing (other
than customary agreements with and between underwriters and selling group
members with respect to a bona fide public offering of securities) for the
purpose of acquiring, holding, voting (except pursuant to a revocable
proxy to the extent contemplated by the proviso to Section 1(e)(ii)) or
disposing of any securities of the Company; provided, however,
that no person who is an officer, director or employee of an Exempt Person will
be deemed, solely by reason of such person’s status or authority as such, to be
a Beneficial Owner of, to have Beneficial Ownership of or to Beneficially Own
any securities of the Company that are Beneficially Owned (including in a
fiduciary capacity) by an Exempt Person or by any other such officer, director
or employee of an Exempt Person; or 

-3- 

(iv)           that are the subject of a derivative transaction entered
into by such Person or any of such Person’s Affiliates or Associates, including,
for these purposes, any derivative security acquired by such Person or any of
such Person’s Affiliates or Associates that gives such Person or any of such
Person’s Affiliates or Associates the economic equivalent of ownership of an
amount of securities due to the fact that the value of the derivative security
is explicitly determined by reference to the price or value of such securities,
or that provides such Person or any of such Person’s Affiliates or Associates an
opportunity, directly or indirectly, to profit or to share in any profit derived
from any change in the value of such securities, in any case without regard to
whether (A) such derivative security conveys any voting rights in such
securities to such Person or any of such Person’s Affiliates or Associates; (B)
the derivative security is required to be, or capable of being, settled through
delivery of such securities; or (C) such Person or any of such Person’s
Affiliates or Associates may have entered into other transactions that hedge the
economic effect of such derivative security. In determining the number of Common
Shares that are Beneficially Owned by virtue of the operation of this Section
1(e)(iv), the subject Person will be deemed to Beneficially Own (without
duplication) the notional or other number of Common Shares that, pursuant to the
documentation evidencing the derivative security, may be acquired upon the
exercise or settlement of the applicable security or as the basis upon which the
value or settlement amount of such security, or the opportunity of the holder of
such derivative security to profit or share in any profit, is to be calculated,
in whole or in part, and in any case (or if no such number of Common Shares is
specified in such documentation or otherwise) as determined by the Board in good
faith to be the number of Common Shares to which the derivative security
relates. 

(f)            “Board” has the meaning set forth in the recitals at
the beginning of this Agreement. 

(g)            “Book Entry Shares” has the meaning set forth in
Section 3(a). 

(h)            “Business Day” means any day other than a Saturday,
Sunday or any day on which the Federal Reserve Bank of New York is closed. 

(i)            “Close of Business” on any given date means 5:00
p.m., New York City time, on such date; provided, however, that if
such date is not a Business Day, it means 5:00 p.m., New York City time, on the
next succeeding Business Day. 

(j)            “Common Shares” means, unless otherwise specified,
the shares of common stock, par value $0.0001 per share, of the Company. When
used with reference to any Person other than the Company, Common Shares means
the capital stock with the greatest voting power, or the equity securities or
other equity interest having power to control or direct the management, of such Person or, if such Person is a Subsidiary
of another Person, of the Person that ultimately controls such first-mentioned
Person. 

-4- 

(k)            “Common Share Equivalents” has the meaning set forth
in Section 11(a)(iii). 

(l)            “Company” has the meaning set forth in the preamble
hereto, subject to the terms of Section 13(a). 

(m)            “Current Per Share Market Price” of any security (a
“Security” for purposes of this definition), for all computations other
than those made pursuant to Section 11(a)(iii), means 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, and for purposes of
computations made pursuant to Section 11(a)(iii), the Current Per Share Market
Price of any Security on any date will be deemed to be the average of the daily
closing prices per share of such Security for the 10 consecutive Trading Days
immediately following but not including such date; provided,
however, that in the event that the Current Per Share Market Price of the
Security is determined during any period following the announcement by the
issuer of such Security of (i) a dividend or distribution on such Security
payable in shares of such Security or securities convertible into such shares
(other than the Rights), or (ii) any subdivision, combination, consolidation,
reverse stock split or reclassification of such Security, and the ex-dividend
date for such dividend or distribution, or the record date for such subdivision,
combination, consolidation, reverse stock split or reclassification, has not
occurred prior to the commencement of the requisite 30 Trading Day or 10 Trading
Day period as set forth above, then, and in each such case, the Current Per
Share Market Price will be appropriately adjusted to take into account
ex-dividend trading. The closing price for each day will be the last sale price,
regular way, reported at or prior to 4:00 p.m., New York City time, or, if no
such sale takes place on such day, the average of the bid and asked prices,
regular way, reported as of 4:00 p.m. New York City time, in either case as
reported in the principal consolidated transaction reporting system with respect
to securities listed or admitted to trading on NASDAQ or, if the Security is not
listed or admitted to trading on NASDAQ, as reported in the principal
consolidated transaction reporting system with respect to securities listed on
the principal national securities exchange on which the 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., New York City time, or, if on such date the Security is 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., New York City 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. If on any such date no market maker is making a market in the Security,
the fair value of such shares on such date as determined in good faith by the
Board will be used, which determination will be described in a statement filed
with the Rights Agent and will be conclusive and binding on the Rights Agent and
the holders of the Rights. If the Current Per Share Market Price of the
Preferred Shares cannot be determined in the manner provided above or if the
Preferred Shares are not publicly held or not listed or traded in a manner
described above, then the Current Per Share Market Price of the Preferred Shares
will be conclusively deemed to be (x) the Current Per Share Market Price of the
Common Shares as determined pursuant to this Section 1(m) multiplied by (y)
1,000 (as such number may be appropriately adjusted to reflect any subdivision,
combination, consolidation, reverse stock split or reclassification of Common Shares
occurring after the Rights Dividend Declaration Date). If the Security (other
than the Preferred Shares) is not publicly held or not so listed or traded, or
if on any such date the Security is not so quoted and no such market maker is
making a market in the Security, then the Current Per Share Market Price means
the fair value per share as determined in good faith by the Board, after
consultation with a nationally recognized investment banking firm, whose
determination will be described in a statement filed with the Rights Agent and
will be conclusive and binding on the Rights Agent and the holders of the
Rights. 

-5- 

(n)            “Current Exchange Value” means the product of the
Current Per Share Market Price of Common Shares on the date of the occurrence of
an Exchange Determination (or the next Business Day, if such date is not a
Business Day) multiplied by the number of Common Shares for which the Right
would otherwise be exchangeable (without regard to whether there were sufficient
Common Shares available therefor). 

(o)            “Current Value” means the value of the Adjustment
Shares issuable upon the exercise of a Right. 

(p)            “Distribution Date” means the earlier of (i) the
Close of Business on the 10th Business Day (or such later date as may be
determined by action of the Board, which action must be taken prior to the
Distribution Date that otherwise would have occurred) after the Shares
Acquisition Date (or, if the 10th Business Day after the Shares Acquisition Date
occurs before the Record Date, then the Record Date); or (ii) the Close of
Business on the 10th Business Day (or such later date as may be determined by
the Board) after the date that a tender or exchange offer by any Person (other
than an Exempt Person) is first published, sent or given within the meaning of
Rule 14d-2(a) of the General Rules and Regulations promulgated under the
Exchange Act if, assuming the successful consummation thereof, such Person would
be an Acquiring Person; provided, however, that if any tender or
exchange offer referred to in clause (ii) of this Section 1(p) is cancelled,
terminated or otherwise withdrawn prior to the Distribution Date without the
purchase or exchange of any Common Shares pursuant thereto, then such offer will
be deemed, for purposes of this paragraph, never to have been made.

(q)            “Equivalent Shares” means any class or series of
capital stock of the Company having the same rights, privileges and preferences
as the Preferred Shares. 

(r)            “Exchange Act” means the Securities Exchange Act of
1934, as amended. 

(s)            “Exchange Determination” has the meaning set forth
in Section 24(a). 

(t)            “Exchange Ratio” has the meaning set forth in
Section 24(a). 

(u)            “Exempt Person” means (i) the Company or any
Subsidiary of the Company, in each case including the officers and members of
the board of directors thereof acting in their fiduciary capacities; (ii) any
employee benefit plan of the Company or of any Subsidiary of the Company or any
entity or trustee holding (or acting in a fiduciary capacity in respect of)
shares of capital stock of the Company for or pursuant to the terms of any such
plan, or for the purpose of funding other employee benefits for employees of the
Company or any Subsidiary of the Company; or (iii) any Person who or which the
Board determines, prior to the time such Person would otherwise be an Acquiring Person, should
be exempted from the definition of Acquiring Person; provided, however, that the
Board may make such exemption subject to such conditions, if any, as the Board
may determine. 

-6- 

(v)            “Exercise Price” has the meaning set forth in
Section 4(a). 

(w)            “Expiration Date” means the earliest to occur of (i)
the Close of Business on the Final Expiration Date; (ii) the Redemption Date; or
(iii) the time at which the Board orders the exchange of the Rights as provided
in Section 24. 

(x)            “Final Expiration Date” means the two year
anniversary date of the date of this Agreement.

(y)            “Grandfathered Person” shall mean any Person who or
which, together with all Affiliates and Associates of such Person, is, as of the
Rights Dividend Declaration Date, the Beneficial Owner of the Trigger Percentage
or more of the Common Shares then outstanding.

(z)            “NASDAQ” means The NASDAQ Stock Market LLC. 

(aa)            “Original Rights” has the meaning set forth in
Section 1(e)(i). 

(bb)           “Person” means any individual, firm, corporation,
partnership, limited liability company, joint venture, business trust, trust,
association, syndicate, group (as such term is used in Rule 13d-5 of the General
Rules and Regulations promulgated under the Exchange Act, as in effect on the
Rights Dividend Declaration Date) or other entity, and, in each case, will
include any successor (by merger or otherwise) of any such Person. 

(cc)           “Post-Event Transferee” has the meaning set forth
in Section 7(e). 

(dd)           “Pre-Event Transferee” has the meaning set forth in
Section 7(e). 

(ee)           “Preferred Shares” means shares of Series A
Participating Preferred Stock, par value $0.0001 per share, of the Company and,
to the extent that there are not a sufficient number of shares of Preferred
Shares authorized to permit the full exercise of the Rights, any other series of
preferred stock of the Company designated for such purpose containing terms
substantially similar to the terms of the Preferred Shares. 

(ff)           “Principal Party” has the meaning set forth in
Section 13(b). 

(gg)           “Record Date” has the meaning set forth in the
recitals at the beginning of this Agreement. 

(hh)           “Redemption Date” has the meaning set forth in
Section 23(a). 

(ii)           “Redemption Price” has the meaning set forth in
Section 23(a). 

(jj)           “Right” or “Rights” has the meaning set
forth in the recitals at the beginning of this Agreement. 

-7- 

(kk)          “Rights Agent” has the meaning set forth in the
preamble hereto. 

(ll)            “Rights Certificate” means a certificate
substantially in the form attached hereto as Exhibit B. 

(mm)         “Rights Dividend Declaration Date” has the meaning
set forth in the recitals at the beginning of this Agreement. 

(nn)          “Section 11(a)(ii) Event” means any event described
in Section 11(a)(ii). 

(oo)          “Section 11(a)(ii) Trigger Date” has the meaning
set forth in Section 11(a)(iii). 

(pp)          “Section 13 Event” means any event described in
clause (i), (ii) or (iii) of Section 13(a). 

(qq)          “Securities Act” means the Securities Act of 1933,
as amended. 

(rr)           
“Security” has the meaning set forth in Section
1(m). 

(ss)           “Shares Acquisition Date” means the first date of
public announcement (which, for purposes of this definition, includes the filing
or amending of a report pursuant to Section 13(d) of the Exchange Act or
pursuant to a comparable successor statute) by the Company or an Acquiring
Person that an Acquiring Person has become such or that discloses information
that reveals the existence of an Acquiring Person. 

(tt)            “Spread” means the excess of (i) the Current Value
over (ii) the Exercise Price. 

(uu)          “Subsequent Transferee” has the meaning set forth
in Section 7(e). 

(vv)          “Subsidiary” of any Person means any firm,
corporation, partnership, limited liability company, joint venture, business
trust, trust, association, syndicate or other entity (whether or not
incorporated) of which an amount of voting securities sufficient to elect a
majority of the directors or Persons having similar authority, or a majority of
the equity or ownership interests, is Beneficially Owned, directly or
indirectly, by such Person, or any firm, corporation, partnership, limited
liability company, joint venture, business trust, trust, association, syndicate
or other entity (whether or not incorporated) otherwise controlled by such
Person. 

(ww)         “Substitution Period” has the meaning set forth in
Section 11(a)(iii). 

(xx)           “Summary of Rights” means a summary of this
Agreement substantially in the form attached hereto as Exhibit C. 

(yy)          “Trading Day” means a day on which the principal
national securities exchange on which a referenced security is listed or
admitted to trading is open for the transaction of business or, if a referenced
security is not listed or admitted to trading on any national securities
exchange, a Business Day. 

-8- 

(zz)           “Triggering Event” means any Section 11(a)(ii)
Event or Section 13 Event. 

(aaa)           “Trigger Percentage” means ten percent (10%) of the
Common Shares then outstanding.

(bbb)          “Trust” has the meaning set forth in Section
24(b)(ii). 

(ccc)          “Trust Agreement” has the meaning set forth in
Section 24(b)(ii). 

Section 2. Appointment of Rights Agent. The Company
hereby appoints the Rights Agent to act as rights agent for the Company in
accordance with the terms and conditions hereof, and the Rights Agent hereby
accepts such appointment. The Company may from time to time appoint such
co-rights agents as it may deem necessary or desirable upon 10 days’ prior
written notice to the Rights Agent. If the Company appoints one or more
co-rights agents, then the respective duties of the Rights Agent and such
co-rights agents will be as the Company determines. The Rights Agent will have
no duty to supervise, and will in no event be liable for the acts or omissions
of, any co-rights agent. 

Section 3. Issuance of Rights Certificates. 

(a)            Rights Evidenced by Certificates for Common Shares and
Book Entry Shares. Until the Distribution Date, (i) the Rights (unless
earlier expired, redeemed or terminated) will be evidenced (subject to the
provisions of Section 3(b) and Section 3(c)) by the certificates for Common
Shares registered in the names of the holders thereof or, in the case of
uncertificated Common Shares registered in book entry form (“Book Entry
Shares”), by notation in book entry accounts reflecting the ownership of
such Common Shares (which certificates and Book Entry Shares, as applicable,
will also be deemed to be Rights Certificates) and not by separate Rights
Certificates; and (ii) the Rights (and the right to receive Rights Certificates)
will be transferable only in connection with the transfer of the underlying
Common Shares (including a transfer to the Company). As soon as practicable
after the Distribution Date, the Company will prepare and execute, the Rights
Agent will countersign and the Company will send or cause to be sent (and the
Rights Agent will, if requested, send) (by mailing, in accordance with Section
26 or by such means as may be selected by the Company) to each record holder of
Common Shares as of the Close of Business on the Distribution Date (other than
any Acquiring Person or any of its Affiliates or Associates), at the address of
such holder shown on the transfer books of the Company or the transfer agent for
the Common Shares, one or more Rights Certificates evidencing one Right for each
Common Share so held, subject to adjustment as provided herein. Receipt of a
Rights Certificate by any Person will not preclude a later determination that
all or part of the Rights represented thereby are null and void pursuant to
Section 7(e). To the extent that a Section 11(a)(ii) Event has also occurred,
the Company may implement such procedures as it deems appropriate in its sole
discretion to minimize the possibility that Rights are received by any Person
whose Rights are null and void pursuant to Section 7(e). In the event that an
adjustment in the number of Rights per Common Share has been made pursuant to
Section 11, then at the time of distribution of the Rights Certificates, the
Company will make the necessary and appropriate rounding adjustments (in
accordance with Section 14(a)) so that Rights Certificates representing only
whole numbers of Rights are distributed and cash is paid in lieu of any
fractional Rights (in accordance with Section 14(a)). As of and after the Distribution Date, the Rights will be
evidenced solely by the Rights Certificates and may be transferred by the
transfer of the Rights Certificates as permitted hereby, separately and apart
from any transfer of Common Shares, and the holders of such Rights Certificates
as shown on the transfer books of the Company or the transfer agent for the
Rights (which may be the Rights Agent) will be the record holders thereof. The
Company will promptly notify the Rights Agent in writing upon the occurrence of
the Distribution Date. Until such notice is provided to the Rights Agent, it may
presume conclusively that the Distribution Date has not occurred. 

-9- 

(b)            Summary of Rights; Outstanding Common Shares. The
Company will make available, or cause to be made available, promptly after the
Record Date, a copy of the Summary of Rights to any holder of Rights who may so
request from time to time prior to the Expiration Date. With respect to
certificates for Common Shares and Book Entry Shares, as applicable, outstanding
as of the Record Date or issued subsequent to the Record Date, until the earlier
of the Distribution Date or the Expiration Date, the Rights will be evidenced by
such certificates or Book Entry Shares, and the registered holders of the Common
Shares will also be the registered holders of the associated Rights. Until the
earlier of the Distribution Date or the Expiration Date, the surrender for
transfer of any Common Shares in respect of which Rights have been issued (with
or without a copy of the Summary of Rights) will also constitute the transfer of
the Rights associated with such Common Shares. Notwithstanding anything to the
contrary in this Agreement, upon the effectiveness of a redemption pursuant to
Section 23 or an exchange pursuant to Section 24, the Company will not
thereafter issue any additional Rights and, for the avoidance of doubt, no
Rights will be attached to or will be issued with any Common Shares (including
any Common Shares issued pursuant to an exchange) at any time thereafter. 

(c)            Legend. Rights will be issued in respect of all
Common Shares that are issued (whether as an original issuance or from the
Company’s treasury) after the Record Date but prior to the earlier of the
Distribution Date or the Expiration Date. Certificates representing such Common
Shares will also be deemed to be certificates for Rights, and will bear the
following legend if such certificates are issued after the Record Date but prior
to the earlier of the Distribution Date or the Expiration Date: 

THIS CERTIFICATE ALSO EVIDENCES AND
ENTITLES THE HOLDER HEREOF TO CERTAIN RIGHTS AS SET FORTH IN A PREFERRED SHARES
RIGHTS AGREEMENT, DATED AS OF NOVEMBER 20, 2012, BETWEEN CHINA BIOLOGIC
PRODUCTS, INC. (THE “COMPANY”) AND SECURITIES TRANSFER CORPORATION, AS RIGHTS AGENT, AS THE SAME
MAY BE AMENDED FROM TIME TO TIME (THE “RIGHTS AGREEMENT”), THE TERMS OF WHICH
ARE HEREBY INCORPORATED HEREIN BY REFERENCE AND A COPY OF WHICH IS ON FILE AT
THE PRINCIPAL EXECUTIVE OFFICES OF THE COMPANY. UNDER CERTAIN CIRCUMSTANCES, AS
SET FORTH IN THE RIGHTS AGREEMENT, SUCH RIGHTS (AS DEFINED IN THE RIGHTS
AGREEMENT) MAY BE REDEEMED, MAY BECOME EXERCISABLE FOR SECURITIES OR ASSETS OF
THE COMPANY OR SECURITIES OF ANOTHER ENTITY, MAY BE EXCHANGED FOR SHARES OF
COMMON STOCK OR OTHER SECURITIES OR ASSETS OF THE COMPANY, MAY EXPIRE OR MAY BE
EVIDENCED BY SEPARATE CERTIFICATES AND MAY NO LONGER BE EVIDENCED BY THIS CERTIFICATE. THE COMPANY WILL MAIL TO
THE HOLDER OF THIS CERTIFICATE A COPY OF THE RIGHTS AGREEMENT WITHOUT CHARGE
AFTER RECEIPT OF A WRITTEN REQUEST THEREFOR. UNDER CERTAIN
CIRCUMSTANCES AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS THAT ARE OWNED BY,
TRANSFERRED TO OR HAVE BEEN OWNED BY AN ACQUIRING PERSON (AS DEFINED IN THE
RIGHTS AGREEMENT) OR ANY OF ITS AFFILIATES (AS DEFINED IN THE RIGHTS AGREEMENT)
OR ASSOCIATES (AS DEFINED IN THE RIGHTS AGREEMENT) WILL BE NULL AND VOID AND
WILL NO LONGER BE TRANSFERRABLE. 

-10- 

With respect to any Book Entry Shares, a legend in
substantially similar form will be included in a notice to the record holder of
such shares in accordance with applicable law. With respect to such certificates
for Common Shares or Book Entry Shares, as applicable, containing the foregoing
legend, until the earlier of the Distribution Date or the Expiration Date, (i)
the Rights associated with the Common Shares represented by such certificates or
Book Entry Shares will be evidenced solely by such certificates or Book Entry
Shares, (ii) the registered holders of the Common Shares will also be the
registered holders of the associated Rights and (iii) the surrender for transfer
of any such certificates or Book Entry Shares (with or without a copy of the
Summary or Rights) will also constitute the transfer of the Rights associated
with the Common Shares represented thereby. Notwithstanding this Section 3(c),
the omission of the legend required hereby, the inclusion of a legend that makes
reference to a rights agreement other than this Agreement or the failure to
provide notice thereof will not affect the enforceability of any part of this
Agreement or the rights of any holder of Rights. 

(d)            Acquisitions of Rights by the Company. In the event
that the Company purchases or acquires any Common Shares after the Record Date
but prior to the earlier of the Distribution Date or the Expiration Date, any
Rights associated with such Common Shares will be deemed cancelled and retired
so that the Company will not be entitled to exercise any Rights associated with
the Common Shares that are no longer outstanding. 

Section 4. Form of Rights Certificates. 

(a)            Rights Certificates. The Rights Certificates (and
the form of election to purchase and form of assignment, including the
certifications therein, to be printed on the reverse thereof) will be
substantially in the form of 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 affect the
rights, duties, responsibilities and liabilities of the Rights Agent) and are
not inconsistent with the provisions of this Agreement, or as may be required to
comply with any applicable law or with any rule or regulation made pursuant
thereto, with any applicable rule or regulation of any applicable stock exchange
or trading system or the Financial Industry Regulatory Authority, or to conform
to usage. Subject to the provisions of Section 11 and Section 22, the Rights
Certificates, whenever distributed, will be dated as of the Record Date (or in
the case of Rights issued with respect to Common Shares issued by the Company
after the Record Date, as of the date of issuance of such Common Shares) and on
their face will entitle the holders thereof to purchase such number of one
one-thousandths of a Preferred Share as will be set forth therein at the price
set forth therein (such exercise price per one one-thousandth of a Preferred
Share, the “Exercise Price”), but the number and type of securities purchasable upon the exercise of each Right and the
Exercise Price will be subject to adjustment as provided herein. 

-11- 

(b)            Certain Legends. Any Rights Certificate issued
pursuant to Section 3(a), Section 11(h) or Section 22 that represents Rights
that are Beneficially Owned by an Acquiring Person, an Affiliate or Associate of
an Acquiring Person, a Post-Event Transferee, a Pre-Event Transferee, a
Subsequent Transferee or (v) any nominee of any of the foregoing, and any Rights
Certificate issued pursuant to Section 6 or Section 11 upon transfer, exchange,
replacement or adjustment of any other Rights Certificate referred to in this
sentence, will contain (to the extent feasible) the following legend: 

THE RIGHTS REPRESENTED BY THIS RIGHTS
CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN
ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON.
ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY
BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF THE
RIGHTS AGREEMENT. 

(c)            Uncertificated Rights. Notwithstanding anything to
the contrary in this Agreement, the Company and the Rights Agent may amend this
Agreement to provide for uncertificated Rights in addition to or in place of
Rights evidenced by Rights Certificates. 

Section 5. Countersignature and Registration. 

(a)            Countersignature. The Rights Certificates will be
executed on behalf of the Company by its Chairman of the Board, its Chief
Executive Officer or its Chief Financial Officer, which execution will be
attested to by the Secretary of the Company, in each case either manually or by
facsimile signature, and will have affixed thereto the Company’s seal (if any)
or a facsimile thereof. The Rights Certificates will be countersigned, either
manually or by facsimile signature, by an authorized signatory of the Rights
Agent, but it will not be necessary for the same signatory to countersign all of
the Rights Certificates. No Rights Certificate will be valid for any purpose
unless countersigned by the Rights Agent. If any director or officer of the
Company who has signed or attested to any of the Rights Certificates ceases to
be such director or officer of the Company before countersignature by the Rights
Agent and issuance and delivery by the Company, such Rights Certificates
nevertheless may be countersigned by the Rights Agent and issued and delivered
by the Company with the same force and effect as though the person who signed or
attested to such Rights Certificates on behalf of the Company had not ceased to
be a director or officer of the Company. Any Rights Certificate may be signed or
attested to on behalf of the Company by any person who, as of the actual date of
the execution of such Rights Certificate, is a proper director or officer of the
Company to sign such Rights Certificate, although at the date of the execution
of this Agreement any such person was not such a director or officer. 

(b)            Transfer Books. Following the Distribution Date, the
Rights Agent will keep or cause to be kept, at its office designated for such
purposes, books for registration and transfer of the Rights Certificates issued
hereunder. Such books will show the names and addresses of the respective
holders of the Rights Certificates, the number of Rights evidenced on its face by each of the Rights Certificates, the certificate
number of each of the Rights Certificates and the date of each of the Rights
Certificates. The Rights Agent will not register, or permit to be registered,
any transfer or exchange of any Rights Certificates (or the underlying Rights)
that have become null and void pursuant to Section 7(e), have been redeemed
pursuant to Section 23 or have been exchanged pursuant to Section 24. 

-12- 

Section 6. Transfer, Split Up, Combination and Exchange of
Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights
Certificates. 

(a)            Transfer, Split Up, Combination and Exchange of Rights
Certificates. Subject to the provisions of Section 4(b), Section 7(e),
Section 14 and Section 24, at any time after the Close of Business on the
Distribution Date, and at or prior to the Close of Business on the Expiration
Date, any Rights Certificate (other than any Rights Certificate representing
Rights that have become null and void pursuant to Section 7(e) or that have been
exchanged pursuant to Section 24) may be transferred, split up, combined or
exchanged for another Rights Certificate entitling the registered holder to
purchase a like number of one one-thousandths of a Preferred Share (or,
following a Triggering Event, other securities, cash or other assets, as the
case may be) as the Rights Certificate surrendered then entitled such holder (or
former holder in the case of a transfer) to purchase. Any registered holder
desiring to transfer, split up, combine or exchange any Rights Certificate will
make such request in writing delivered to the Rights Agent, and will surrender
the Rights Certificate to be transferred, split up, combined or exchanged at the
office of the Rights Agent designated for such purpose. Notwithstanding anything
in this Agreement to the contrary, neither the Rights Agent nor the Company will
be obligated to take any action whatsoever with respect to the transfer of any
such surrendered Rights Certificate until the registered holder has properly
completed and duly executed the certificate contained in the form of assignment
on the reverse side of such Rights Certificate and has provided such additional
evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or
Affiliates or Associates thereof, in each case as the Company or the Rights
Agent reasonably requests. Thereupon, subject to Section 4(b), Section 7(e),
Section 14 and Section 24, the Rights Agent will countersign (by manual or
facsimile signature) and deliver to the Person entitled thereto a Rights
Certificate as so requested. The Company or the Rights Agent may require payment
from the holder of a Rights Certificate of a sum sufficient to cover any tax or
governmental charge that may be imposed in connection with any transfer, split
up, combination or exchange of any Rights Certificate. If and to the extent that
the Company does require payment of any such tax or charge, the Company will
provide the Rights Agent prompt written notice thereof and the Rights Agent will
not deliver any Right Certificate unless and until the Rights Agent is satisfied
that all such payments have been made, and the Rights Agent will forward any
such sum collected by it to the Company or to such Person as the Company
specifies by written notice. The Rights Agent will not have any duty or
obligation to take any action pursuant to any Section of this Agreement related
to the issuance or delivery of Rights Certificates unless and until it is
satisfied that all such taxes or charges have been paid. 

(b)            Mutilated, Destroyed, Lost or Stolen Rights
Certificates. Subject to the provisions of Section 7(e), Section 11(a)(ii)
and Section 24, at any time after the Distribution Date and prior to the
Expiration Date, upon receipt by the Company and the Rights Agent of evidence
reasonably satisfactory to them of the loss, theft, destruction or mutilation of
a Rights Certificate and 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 may request, and, in case of loss, theft or destruction, of
indemnity or security reasonably satisfactory to them, and reimbursement to the
Company and the Rights Agent of all reasonable expenses incidental thereto, and
upon surrender to the Rights Agent and cancellation of the Rights Certificate if
mutilated, the Company will make and deliver a new Rights Certificate of like
tenor to the Rights Agent for countersignature and delivery to the registered
holder in lieu of the Rights Certificate so lost, stolen, destroyed or
mutilated. Every new Rights Certificate issued pursuant to this Section 6(b) in
lieu of any lost, stolen, destroyed or mutilated Rights Certificate will
evidence an original additional contractual obligation of the Company, whether
or not the lost, stolen, destroyed or mutilated Rights Certificate will be at
any time enforceable by anyone, and, subject to Section 7(e) will be entitled to
all the benefits of this Agreement equally and proportionately with any and all
other Rights duly issued hereunder. 

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Section 7. Exercise of Rights; Exercise Price; Expiration
Date of Rights.

(a)            Exercise of Rights. Subject to Section 7(e), Section
23(b) and Section 24(a), the registered holder of any Rights Certificate
may exercise the Rights evidenced thereby (except as otherwise provided herein)
in whole or in part on any Business Day at or after the Distribution Date and
prior to the Close of Business on the Expiration Date by surrender of the Rights
Certificate, with the form of election to purchase and certificate on the
reverse side thereof properly completed and duly executed, to the Rights Agent
at the office of the Rights Agent designated for such purpose, together with
payment of the Exercise Price for each one one-thousandth of a Preferred Share
(or, following a Triggering Event, other securities, cash or other assets, as
the case may be) as to which the Rights are exercised. 

(b)            Price. The Exercise Price for each one
one-thousandth of a Preferred Share issuable pursuant to the exercise of a Right
is initially $60.00 and is subject to adjustment from time to time as provided
in Section 11 or Section 13, and is payable in accordance with Section 7(c).

(c)            Payment. Except as otherwise provided in this
Agreement, upon receipt of a Rights Certificate representing exercisable Rights,
with the form of election to purchase and certification properly completed and
duly executed, accompanied by payment of the aggregate Exercise Price for the
total number of one one-thousandths of a Preferred Share (or, following a
Triggering Event, other securities, cash or other assets, as the case may be) to
be purchased and an amount equal to any applicable transfer tax or governmental
charge required to be paid by the holder of such Rights Certificate in
accordance with Section 9(e), the Rights Agent will, subject to Section 7(f) and
Section 20(k), thereupon promptly (i) (A) requisition from any transfer agent of
the Preferred Shares (or make available, if the Rights Agent is the transfer
agent for the Preferred Shares) a certificate for the total number of one
one-thousandths of a Preferred Share (or, following a Triggering Event, other
securities, cash or other assets, as the case may be) to be purchased (or, in
the case of uncertificated shares or other securities, requisition from the
transfer agent a notice setting forth such number of shares or other securities
to be purchased for which registration will be made on the transfer books of the
Company), and the Company hereby irrevocably authorizes its transfer agent to
comply with all such requests, or (B) if the Company has elected to deposit the
total number of one one-thousandths of a Preferred Share (or, following a
Triggering Event, other securities, cash or other assets, as the case may be)
issuable upon exercise of the Rights hereunder with a depositary agent,
requisition from such depositary agent depositary receipts representing
interests in such number of one one-thousandths of a Preferred Share (or, following a Triggering Event, other securities, cash
or other assets, as the case may be) as are to be purchased (in which case
certificates for the Preferred Shares (or, following a Triggering Event, other
securities, cash or other assets, as the case may be) represented by such
receipts will be deposited by the transfer agent with such depositary agent) and
the Company hereby irrevocably directs such depositary agent to comply with such
request; (ii) when appropriate, requisition from the Company the amount of cash,
if any, to be paid in lieu of the issuance of fractional shares in accordance
with Section 14; (iii) after receipt of such certificates, notices, or
depositary receipts, cause the same to be delivered to or upon the order of the
registered holder of such Rights Certificate, registered in such name or names
as may be designated by such holder; and (iv) when appropriate, after receipt
thereof, deliver such cash to or upon the order of the registered holder of such
Rights Certificate. The payment of the Exercise Price (as such amount may be
reduced (including to zero) pursuant to Section 11(a)(iii)), and an amount equal
to any applicable transfer tax or governmental charge required to be paid by the
holder of such Rights Certificate in accordance with Section 9(e), may be made
by certified bank check, money order, cashier’s check or bank draft payable to
the order of the Company. In the event that the Company is obligated to issue
securities of the Company other than Preferred Shares, pay cash or distribute
other property pursuant to Section 11(a), then the Company will make all
arrangements necessary so that such other securities, cash or other property are
available for distribution by the Rights Agent, if and when appropriate.
Notwithstanding anything to the contrary in this Agreement, the Company reserves
the right to require that prior to the occurrence of a Triggering Event, upon
any exercise of Rights, a number of Rights be exercised so that only whole
Preferred Shares would be issued. 

-14- 

(d)            Partial Exercise. If the registered holder of any
Rights Certificate exercises less than all the Rights evidenced thereby, then a
new Rights Certificate evidencing Rights equivalent to the Rights remaining
unexercised will be issued by the Rights Agent and delivered to or upon the
order of the registered holder of such Rights Certificate, registered in such
name as may be designated by such holder, subject to the provisions of Section
14. 

(e)            Prohibited Issuances. Notwithstanding anything to
the contrary in this Agreement, from and after the first occurrence of a
Triggering Event, any Rights that are or were acquired or Beneficially Owned by
(i) an Acquiring Person or an Affiliate or Associate of an Acquiring Person,
(ii) a transferee of an Acquiring Person (or an Affiliate or Associate of an
Acquiring Person) who becomes a transferee after the Acquiring Person becomes
such (a “Post-Event Transferee”), (iii) a transferee of an Acquiring
Person (or an Affiliate or Associate of an Acquiring Person) who becomes a
transferee prior to or concurrently with the Acquiring Person becoming such and
receives such Rights pursuant to either (A) a transfer (whether or not for
consideration) from the Acquiring Person to holders of equity interests in such
Acquiring Person or to any Person with whom the Acquiring Person has any
continuing agreement, arrangement or understanding whether or not in writing
regarding the transferred Rights or (B) a transfer that the Board has determined
is part of a plan, arrangement or understanding that has as a primary purpose or
effect the avoidance of this Section 7(e) (a “Pre-Event Transferee”),
(iv) any subsequent transferee receiving transferred Rights from a Post-Event
Transferee or a Pre-Event Transferee, either directly or through one or more
intermediate transferees (a “Subsequent Transferee”), or (v) any nominee
of any of the foregoing will, in each case, become null and void without any
further action, and no holder (whether or not such holder is an Acquiring Person
or an Affiliate or Associate of an Acquiring Person) of such Rights will have
any rights whatsoever (including the right to exercise) with respect to such
Rights or any Rights Certificates that formerly evidenced such Rights, whether pursuant to any
provision of this Agreement or otherwise. From and after the first occurrence of
a Triggering Event, no Rights Certificate will be issued pursuant to this
Agreement (including to an Acquiring Person, an Affiliate or Associate of an
Acquiring Person, a Post-Event Transferee, a Pre-Event Transferee, a Subsequent
Transferee or any nominee of any of the foregoing) that represents one or more
Rights that are or have become void pursuant to this Section 7(e) or with
respect to any Common Shares otherwise deemed to be Beneficially Owned by any of
the foregoing, and any Rights Certificate delivered to the Rights Agent that
represents Rights that are or have become null and void pursuant to this Section
7(e) will be cancelled. The Company will use all reasonable efforts to ensure
that the provisions of this Section 7(e) and Section 4(b) are complied with, but
neither the Company nor the Rights Agent will have any liability to any holder
of Rights Certificates or to any other Person as a result of the Company’s
failure to make any determinations with respect to an Acquiring Person, an
Affiliate or Associate of an Acquiring Person, a Post-Event Transferee, a
Pre-Event Transferee, a Subsequent Transferee or any nominee of any of the
foregoing. The Company will provide the Rights Agent with written notice of the
identity of any such Acquiring Person, Affiliate or Associate of an Acquiring
Person, Post-Event Transferee, Pre-Event Transferee, Subsequent Transferee or
any nominee of any of the foregoing, and the Rights Agent may rely on such
notice in carrying out its duties pursuant to this Agreement and will be deemed
not to have any knowledge of the identity of any such Person unless and until it
has received such notice. 

-15- 

(f)            Information Concerning Ownership. Notwithstanding
anything to the contrary in this Agreement, neither the Rights Agent nor the
Company is obligated to undertake any action with respect to a registered holder
of Rights upon the occurrence of any purported exercise or transfer of Rights as
set forth in this Section 7 unless such registered holder, in addition to having
complied with the requirements of Section 7(a), has (i) properly completed and
duly executed the certificate contained in the form of election to purchase or
form of assignment, as applicable, set forth on the reverse side of the Rights
Certificate surrendered for such exercise or assignment; and (ii) provided such
additional evidence (including the identity of the Beneficial Owner (or former
Beneficial Owner) thereof and of the Rights evidenced thereby, and the
Affiliates or Associates of such Beneficial Owner or former Beneficial Owner) as
the Company or the Rights Agent may reasonably request. If such registered
holder does not comply with the foregoing requirements, then the Company will be
entitled to conclusively deem such Rights to be Beneficially Owned by an
Acquiring Person (or an Affiliate or Associate of an Acquiring Person, a
Post-Event Transferee, a Pre-Event Transferee, a Subsequent Transferee or any
nominee of any of the foregoing, as applicable) and, accordingly, such Rights
will be null and void and not exercisable or transferable. 

Section 8. Cancellation and Destruction of Rights
Certificates. All Rights Certificates surrendered for the purpose of
exercise, transfer, split up, combination, redemption or exchange will, if
surrendered to the Company or to any of its agents, be delivered to the Rights
Agent for cancellation or in cancelled form, or, if surrendered to the Rights
Agent, will be cancelled by it, and no Rights Certificates will be issued in
lieu thereof except as expressly permitted by any of the provisions of this
Agreement. The Company will deliver to the Rights Agent for cancellation and
retirement, and the Rights Agent will so cancel and retire, any Rights
Certificate purchased or acquired by the Company otherwise than upon the
exercise thereof. Subject to applicable law, the Rights Agent will maintain
electronic or physical records of all Rights Certificates that have been
cancelled or destroyed by the Rights Agent. The Rights Agent must maintain such
electronic or physical records for the time period required by applicable
law. The Rights Agent must deliver all cancelled Rights Certificates to the
Company, or shall, at the written request of the Company, destroy, or cause to
be destroyed, such cancelled Rights Certificates, and in such case must deliver
a certificate evidencing the destruction thereof to the Company (or, at the
Company’s option, appropriate copies of the electronic or physical records
relating to Rights Certificates so cancelled or destroyed by the Rights Agent). 

-16- 

Section 9. Reservation and Availability of Preferred
Shares. 

(a)            Reservation. The Company covenants and agrees that
it will use all reasonable efforts to cause to be reserved and kept available
out of its authorized and unissued Preferred Shares not reserved for another
purpose (and, following the occurrence of a Triggering Event, out of its
authorized and unissued Common Shares or other securities, or out of its
authorized and issued shares held in treasury), the number of Preferred Shares
(and, following the occurrence of a Triggering Event, Common Shares or other
securities) that will be sufficient to permit the exercise in full of all
outstanding Rights. 

(b)            Listing. So long as the Preferred Shares (and,
following the occurrence of a Triggering Event, Common Shares or other
securities) issuable and deliverable upon the exercise of the Rights may be
listed on any national securities exchange, then the Company must use all
reasonable efforts to cause, from and after such time as the Rights become
exercisable (but only to the extent that it is reasonably likely that the Rights
will be exercised), all shares reserved for such issuance to be listed on such
exchange upon official notice of issuance upon such exercise. 

(c)            Registration. The Company must use all reasonable
efforts to (i) file, as soon as practicable following the earliest date after
the first occurrence of a Section 11(a)(ii) Event in which the consideration to
be delivered by the Company upon exercise of the Rights is described in Section
11(a)(ii) or Section 11(a)(iii), or as soon as is required by law following the
Distribution Date, as the case may be, a registration statement pursuant to the
Securities Act with respect to the securities purchasable upon exercise of the
Rights on an appropriate form; (ii) cause such registration statement to become
effective as soon as practicable after such filing; and (iii) cause such
registration statement to remain effective (with a prospectus at all times
meeting the requirements of the Securities Act) until the earlier of (A) the
date as of which the Rights are no longer exercisable for such securities and
(B) the Expiration Date. The Company may temporarily suspend, from time to time
for a period not to exceed 120 days after the date set forth in clause (i) of
the first sentence of this Section 9(c), the exercisability of the Rights in
order to prepare and file such registration statement and permit it to become
effective or in order to prepare and file any supplement or amendment to such
registration statement that the Board determines to be necessary pursuant to
applicable law. Upon any such suspension, the Company will issue a public
announcement stating, and notify the Rights Agent in writing, that the
exercisability of the Rights has been temporarily suspended, as well as issue a
public announcement, and notify the Rights Agent in writing, at such time as the
suspension is no longer in effect. In addition, if the Company determines that a
registration statement is required following the Distribution Date, then the
Company may temporarily suspend the exercisability of the Rights until such time
as such registration statement has been declared effective. The Company will
also take such action as may be appropriate under, or to ensure compliance with,
the securities or “blue sky” laws of the various states in connection with the
exercisability of the Rights, as well as any other applicable law, rule or
regulation. Notwithstanding anything to the  contrary in this Agreement, the Rights will not be exercisable
in any jurisdiction unless the requisite qualification in such jurisdiction has
been obtained (and the exercise thereof is permitted pursuant to applicable
law), or an exemption therefrom is available, and until a registration statement
in respect thereof has been declared and remains effective. 

-17- 

(d)            Valid Issuance. The Company covenants and agrees
that it will take all such action as may be necessary to ensure that all
Preferred Shares (and, following the occurrence of a Triggering Event, Common
Shares or other securities of the Company) delivered upon exercise of Rights
will, at the time of delivery of the certificates for such securities (or
registration on the transfer books of the Company or the transfer agent for such
securities) (subject to payment of the Exercise Price, if any), be duly and
validly authorized and issued and fully paid and nonassessable. 

(e)            Taxes and Charges. The Company further covenants and
agrees that it will pay when due and payable any and all transfer taxes and
governmental charges that may be payable in respect of the original issuance or
delivery of Rights Certificates (or any Preferred Share, Common Share or other
security of the Company, as the case may be) upon the exercise or exchange of
Rights. Notwithstanding the foregoing, the Company is not required to (i) pay
any transfer tax or governmental charge that may be payable in respect of any
transfer or delivery of Rights Certificates (or certificates or depositary
receipts for Preferred Shares, Common Shares or other securities of the Company,
as the case may be) in a name other than, or the issuance or delivery of
certificates or depositary receipts for Preferred Shares, Common Shares or other
securities of the Company, as the case may be, in a name other than, that of the
registered holder of the Rights Certificate evidencing Rights surrendered for
exercise or exchange; or (ii) issue or deliver any certificates or depositary
receipts for Preferred Shares, Common Shares or other securities of the Company,
as the case may be, upon the exercise or exchange of any Rights until any such
transfer tax or charge has been paid (any such transfer tax or charge being
payable by the registered holder of such Rights Certificate at the time of
surrender or exchange) or it has been established to the Company’s satisfaction
that no such tax or charge is due. The foregoing also apply to any transfer
taxes and governmental charges that may be payable in respect of any
uncertificated Rights Certificates, shares or other securities. 

Section 10. Record Date for Securities Issued. Each
Person in whose name any certificate for a number of one one-thousandths of a
Preferred Share (or any other security of the Company, including Common Shares)
is issued (or registration on the transfer books of the Company or the
applicable transfer agent is effected) upon the exercise or exchange of Rights
will for all purposes be deemed to have become the holder of record of such
fractional Preferred Share (or other security of the Company) represented
thereby on, and such certificate will be dated (or registration on the transfer
books of the Company or the applicable transfer agent effected), the date on
which the Rights Certificate evidencing such Rights was duly surrendered and
payment of the applicable Exercise Price, if any, together with any applicable
transfer tax or governmental charge required to be paid by the holder of such
Rights Certificate in accordance with Section 9(e), was made; provided,
however, that if the date of such surrender and payment is a date upon
which the transfer books of the Company (or the applicable transfer agent) are
closed, then such Person will be deemed to have become the record holder of such
fractional Preferred Shares (or other securities of the Company) on, and such
certificate will be dated (or registration on the transfer books of the Company
or the applicable transfer agent effected), the next succeeding Business Day on
which the transfer books of the Company (or the applicable transfer  agent) are open. Prior to the exercise of the Rights evidenced
thereby, the holder of a Rights Certificate is not entitled to any rights of a
holder of Preferred Shares (or any other security of the Company) for which the
Rights are exercisable, including the right to vote, to receive dividends or
other distributions, or to exercise any preemptive rights, and is not be
entitled to receive any notice of any proceedings of the Company, except as
provided herein. 

-18- 

Section 11. Adjustment of Exercise Price, Number and Kind of
Shares or Number of Rights. The Exercise Price, the number and kind of
shares or other property 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)            Certain Events. 

(i)            Certain Adjustments to Preferred Shares.
Notwithstanding anything to the contrary in this Agreement, in the event that
the Company at any time after the Rights Dividend Declaration Date (A) declares
a dividend on the Preferred Shares payable in Preferred Shares, (B) subdivides
or splits the outstanding Preferred Shares, (C) combines or consolidates the
outstanding Preferred Shares (by reverse stock split or otherwise) into a
smaller number of Preferred Shares or (D) issues 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), then, in each
such event, except as otherwise provided in this Section 11(a)(i) and Section
7(e), (1) the Exercise Price in effect at the time of the record date for such
dividend or of the effective date of such subdivision, split, combination,
consolidation or reclassification, and the number and kind of Preferred Shares
or capital stock of the Company, as the case may be, issuable on such date, will
be proportionately adjusted so that the holder of any Right exercised after such
time will be entitled to receive, upon payment of the Exercise Price then in
effect, the aggregate number and kind of Preferred Shares or securities of the
Company, as the case may be, that, 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, split, combination,
consolidation or reclassification; provided, however, that in no
event will 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 the exercise of one Right. If an event occurs that would require
an adjustment pursuant to both this Section 11(a)(i) and Section 11(a)(ii), then
the adjustment provided for in this Section 11(a)(i) will be in addition to, and
will be made prior to, any adjustment required pursuant to Section 11(a)(ii).

(ii)            Exercise of Rights Following Certain Events.
Subject to Section 23 and Section 24, in the event that any Person, at any time
after the Rights Dividend Declaration Date, becomes an Acquiring Person, unless
the event causing such Person to become an Acquiring Person is a transaction set
forth in Section 13(a), then promptly following the occurrence of such event
each holder of a Right, except as provided below and in Section 7(e), will
thereafter have the right to receive for each Right, upon exercise thereof in
accordance with the terms of this Agreement and payment of the Exercise Price in
effect immediately prior to the occurrence of such event, in lieu of a number of
one one-thousandths of a Preferred Share, such number of Common Shares as equals
the quotient obtained by dividing (A) the product obtained by multiplying (1)
the Exercise Price in effect immediately prior to the first occurrence of such event by (2) the number of one one-thousandths of a Preferred
Share for which a Right was exercisable (or would have been exercisable if the
Distribution Date had occurred) immediately prior to the first occurrence of
such event by (B) 50% of the Current Per Share Market Price for Common Shares on
the date of such first occurrence of such event (such number of shares, the
“Adjustment Shares”); provided, however, that the Exercise
Price and the number of Common Shares so receivable upon the exercise of a Right
will be subject to further adjustment as appropriate in accordance with Section
11(e). In the event that a Section 11(a)(ii) Event has occurred and the Rights
are outstanding, then, subject to Section 27, the Company may not take any
action that would eliminate or diminish the benefits intended to be afforded by
the Rights. The Company will promptly notify the Rights Agent in writing when
this Section 11(a)(ii) applies. 

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(iii)           Insufficient Common Shares. In the event that the
number of Common Shares that are authorized by the Company’s Amended and
Restated Certificate of Incorporation, as amended, but not outstanding or
reserved for issuance for purposes other than upon exercise of the Rights are
not sufficient to permit the exercise in full of the Rights in accordance with
Section 11(a)(ii), or if any necessary regulatory or stockholder approval for
such issuance has not been obtained by the Company, then, in the event that the
Rights become exercisable, the Company will (A) determine the Spread and (B)
with respect to each Right (subject to Section 7(e)), make adequate provision to
substitute for the Adjustment Shares issuable pursuant thereto, upon the
exercise of a Right and the payment of the applicable Exercise Price, (1) cash,
(2) a reduction in the Exercise Price, (3) Preferred Shares, (4) other equity
securities of the Company (including shares or units of shares of any series of
preferred stock that, by virtue of having dividend, voting and liquidation
rights substantially comparable to those of the Common Shares, the Board has
deemed in good faith to have substantially the same value or economic rights as
the Common Shares (such shares or units of shares of preferred stock, “Common
Share Equivalents”)), (5) debt securities of the Company, (6) other assets
or (7) any combination of the foregoing, in each case having an aggregate value
equal to the Current Value (less the amount of any reduction in the Exercise
Price), where such aggregate value has been determined by the Board based upon
the advice of a nationally recognized investment banking firm selected by the
Board, which determination will be described in a written statement filed with
the Rights Agent and will be binding on the Rights Agent and the holders of the
Rights; provided, however, that if the Company has not made
adequate provision to deliver value pursuant to clause (B) above within 30 days
following the later of (x) the first occurrence of a Section 11(a)(ii) Event and
(y) the date on which the Company’s right of redemption pursuant to Section
23(a) expires (the later of (x) or (y), the “Section 11(a)(ii) Trigger
Date”), then the Company will be obligated to deliver, upon the surrender
for exercise of a Right and without requiring payment of the Exercise Price,
Common Shares (to the extent available and except to the extent that the Company
has not obtained any necessary stockholder or regulatory approval for such
issuance) and such number or fractions of Preferred Shares and then, if
necessary, cash, which shares or cash have an aggregate value equal to the
Spread. If the Board determines in good faith that it is likely that sufficient
additional Common Shares could be authorized for issuance upon exercise in full
of the Rights or that any necessary stockholder or regulatory approval for such
issuance could be obtained, the 30 day period set forth above may be extended
and re-extended to the extent necessary (with prompt written notice of any such
extension provided to the Rights Agent) from time to time, but not more than 120
days after the Section 11(a)(ii) Trigger Date, so that the Company may seek
stockholder approval for the authorization of such additional Common Shares or take such
action necessary to obtain such regulatory approval (such period, as it may be
extended, the “Substitution Period”). To the extent that the Company
determines that some action need be taken pursuant to the first or second
sentences of this Section 11(a)(iii), the Company (a) will provide, subject to
Section 7(e), that such action applies uniformly to all outstanding Rights and
(b) may suspend the exercisability of the Rights until the expiration of the
Substitution Period in order to seek such stockholder approval, to take any
action necessary to obtain such regulatory approval or to decide the appropriate
form of distribution to be made pursuant to such first sentence and to determine
the value thereof. In the event of any such suspension, the Company will issue a
public announcement (and promptly provide written notice to the Rights Agent)
stating that the exercisability of the Rights has been temporarily suspended, as
well as issue a public announcement (and promptly provide written notice to the
Rights Agent) at such time as the suspension is no longer in effect. For
purposes of this Section 11(a)(iii), the value of the Common Shares will be the
Current Per Share Market Price of the Common Shares on the Section 11(a)(ii)
Trigger Date and the value of any Common Share Equivalent will be deemed to have
the same value as the Common Shares on such date. The Board may, but will not be
required to, establish procedures to allocate the right to receive Common Shares
upon the exercise of the Rights among holders of Rights pursuant to this Section
11(a)(iii). 

-20- 

(b)            Dilutive Rights Offering. If the Company, at any
time after the Rights Dividend Declaration Date, fixes a record date for the
issuance of rights, options or warrants to all holders of Preferred Shares
entitling such holders (for a period expiring within 45 days after such record
date) to subscribe for or purchase Preferred Shares or Equivalent Shares, or
securities convertible into Preferred Shares or Equivalent Shares, at a price
per share (or having a conversion or exercise price per share, if a security
that is convertible into or exercisable for Preferred Shares or Equivalent
Shares) less than the Current Per Share Market Price of the Preferred Shares on
such record date, then, in each such case, the Exercise Price to be in effect
after such record date will be determined by multiplying the Exercise Price in
effect immediately prior to such record date by a fraction, the numerator of
which shall be the number of Preferred Shares and Equivalent Shares (if any)
outstanding on such record date, plus the number of Preferred Shares or
Equivalent Shares, as the case may be, that the aggregate offering price of the
total number of Preferred Shares or Equivalent Shares, as the case may be, to be
offered or issued (or the aggregate initial conversion price of the convertible
securities to be offered or issued) would purchase at such Current Per Share
Market Price, and the denominator of which shall be the number of Preferred
Shares and Equivalent Shares (if any) outstanding on such record date, plus the
number of additional Preferred Shares or Equivalent Shares, as the case may be,
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 will 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 the exercise of one Right. If such
subscription price may be paid in a consideration part or all of which is in a
form other than cash, then the value of such consideration will be as determined
in good faith by the Board, whose determination will be described in a statement
filed with the Rights Agent and will be binding on the Rights Agent and the
holders of the Rights. Preferred Shares and Equivalent Shares owned by or held
for the account of the Company will not be deemed outstanding for the purpose of
any such computation. Such adjustment will be made successively whenever such a
record date is fixed, and in the event that such rights, options or warrants are
not so issued, then the Exercise Price will be adjusted to be the Exercise Price that would then be in
effect if such record date had not been fixed. 

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(c)            Distributions. If the Company, at any time after the
Rights Dividend Declaration Date, fixes a record date for the making of a
distribution to all holders of 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 cash (other than a
periodic cash dividend out of the earnings or retained earnings of the Company),
assets (other than a dividend payable in Preferred Shares, but including any
dividend payable in stock other than Preferred Shares), evidences of
indebtedness, subscription rights, options or warrants (excluding those referred
to in Section 11(b)), then, in each such case, the Exercise Price to be in
effect after such record date will be determined by multiplying the Exercise
Price in effect immediately prior to such record date by a fraction, the
numerator of which will be the Current Per Share Market Price of a Preferred
Share on such record date, less the fair market value per Preferred Share (as
determined in good faith by the Board, whose determination will be described in
a statement filed with the Rights Agent and will be conclusive and binding on
the Rights Agent and the holders of the Rights) of the portion of the cash,
assets or evidences of indebtedness to be so distributed or of such subscription
rights, options or warrants applicable to one Preferred Share, and the
denominator of which shall be such Current Per Share Market Price of a Preferred
Share on such record date; provided, however, that in no event
will 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 the exercise of one Right. Such adjustment will be made successively
whenever such a record date is fixed, and in the event that such distribution is
not so made, then the Exercise Price will be adjusted to be the Exercise Price
that would have been in effect if such record date had not been fixed. 

(d)            Insignificant Changes. Notwithstanding anything to
the contrary in this Agreement, no adjustment in the Exercise Price is required
unless such adjustment would require an increase or decrease of at least 1% of
the Exercise Price; provided, however, that any adjustments that
by reason of this Section 11(d) are not required to be made will be carried
forward and taken into account in any subsequent adjustment. All calculations
pursuant to this Section 11 must be made to the nearest cent or to the nearest
ten-millionth of a Preferred Share or ten-thousandth of any other share or
security, as the case may be. Notwithstanding the first sentence of this Section
11(d), any adjustment required by this Section 11 must be made no later than the
earlier of (i) two years from the date of the transaction that requires such
adjustment or (ii) the Expiration Date. 

(e)            Shares Other Than Preferred Shares. If as a result
of an adjustment made pursuant to Section 11(a) or Section 13(a), the holder of
any Right thereafter exercised will become entitled to receive any shares of
capital stock other than Preferred Shares, then thereafter the number of such
other shares so receivable upon exercise of any Right and, if required, the
Exercise Price thereof, will 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), Section 11(b),
Section 11(c), Section 11(d), Section 11(g), Section 11(h), Section 11(i),
Section 11(j), Section 11(k) and Section 11(l), and the provisions of Section 7,
Section 9, Section 10 and Section 13 with respect to the Preferred Shares will
apply on like terms to any such other shares. 

-22- 

(f)            Rights Issued Subsequent to Adjustment. All Rights
originally issued by the Company subsequent to any adjustment made to the
Exercise Price hereunder will evidence the right to purchase, at the adjusted
Exercise Price, the number of one one-thousandths of a Preferred Share (and
other shares of other capital stock or other securities, assets or cash of the
Company, if any) purchasable from time to time hereunder upon exercise of the
Rights, all subject to further adjustment as provided herein. 

(g)            Effect of Adjustments on Existing Rights. Unless the
Company has exercised its election as provided in Section 11(h), upon each
adjustment of the Exercise Price as a result of the calculations made in Section
11(b) and Section 11(c), each Right outstanding immediately prior to the making
of such adjustment will thereafter evidence the right to purchase, at the
adjusted Exercise Price, that number of Preferred Shares (calculated to the
nearest ten-millionth of a Preferred Share) obtained by (i) multiplying (A) the
number of one one-thousandths of a Preferred Share covered by a Right
immediately prior to this adjustment by (B) the Exercise Price in effect
immediately prior to such adjustment of the Exercise Price, and (ii) dividing
the product so obtained by the Exercise Price in effect immediately after such
adjustment of the Exercise Price. 

(h)            Adjustment in Number of Rights. The Company may
elect on or after the date of any adjustment of the Exercise Price to adjust the
number of Rights, in substitution for any adjustment in the number of one
one-thousandths of a Preferred Share purchasable upon the exercise of a Right.
Each of the Rights outstanding after such adjustment of the number of Rights
will be exercisable for the number of one one-thousandths 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 will
become that number of Rights (calculated to the nearest ten-thousandth) obtained
by dividing the Exercise Price in effect immediately prior to adjustment of the
Exercise Price by the Exercise Price in effect immediately after adjustment of
the Exercise Price. The Company will make a public announcement (and promptly
provide written notice 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 Exercise Price is adjusted or any day thereafter, but, if any
Rights Certificates have been issued, will be at least 10 days later than the
date of the public announcement. If any Rights Certificates have been issued,
upon each adjustment of the number of Rights pursuant to this Section 11(h), the
Company will, as promptly as practicable, distribute or cause to be distributed
to holders of record of Rights Certificates on such record date Rights
Certificates evidencing, subject to Section 14, the additional Rights to which
such holders will be entitled as a result of such adjustment, or, at the option
of the Company, will distribute or cause to be distributed to such holders of
record in substitution and replacement for the Rights Certificates held by such
holders prior to the date of adjustment, and upon surrender thereof, if required
by the Company, new Rights Certificates evidencing all the Rights to which such
holders will be entitled after such adjustment. Rights Certificates to be so
distributed will be issued, executed and countersigned in the manner provided
for herein (and may bear, at the option of the Company, the adjusted Exercise
Price) and will be registered in the names of the holders of record of Rights
Certificates on the record date specified in the public announcement. 

(i)            Rights Certificates Unchanged. Irrespective of any
adjustment or change in the Exercise Price or the number of one one-thousandths
of a Preferred Share issuable upon the exercise of the Rights, the Rights
Certificates theretofore and thereafter issued may continue to express the Exercise Price per one one-thousandth of a
Preferred Share and the number of one one-thousandths of a Preferred Share that
were expressed in the initial Rights Certificates issued hereunder. 

-23- 

(j)            Par Value Limitations. Before taking any action that
would cause an adjustment reducing the Exercise Price below the par or stated
value, if any, of the number of one one-thousandths of a Preferred Share
issuable upon exercise of the Rights, the Company will take any corporate action
that may, in the opinion of its counsel, be necessary in order that the Company
may duly and validly issue as fully paid and nonassessable shares such number of
one one-thousandths of a Preferred Share at such adjusted Exercise Price. 

(k)            Deferred Issuance. In any case in which this Section
11 requires that an adjustment in the Exercise Price be made effective as of a
record date for a specified event, the Company may elect to defer (with prompt
written notice to the Rights Agent) until the occurrence of such event the
issuance to the holder of any Right exercised after such record date of the
number of one one-thousandths of a Preferred Share and other capital stock or
securities, assets or cash of the Company, if any, issuable upon such exercise
over and above the number of one one-thousandths of a Preferred Share and other
capital stock or securities, assets or cash of the Company, if any, issuable
upon such exercise on the basis of the Exercise Price in effect prior to such
adjustment; provided, however, that the Company must deliver to
such holder a due bill or other appropriate instrument evidencing such holder’s
right to receive such additional shares (fractional or otherwise) or securities
upon the occurrence of the event requiring such adjustment. 

(l)            Reduction in Exercise Price. Notwithstanding
anything to the contrary in this Section 11, the Company is entitled to make
such reductions in the Exercise Price, in addition to those adjustments
expressly required by this Section 11, as and to the extent that it, in its sole
discretion, determines to be advisable in order that any (i) consolidation or
subdivision of the Preferred Shares or Common Shares, (ii) issuance wholly for
cash of any Preferred Shares or Common Shares at less than the applicable
Current Per Share Market Price, (iii) issuance wholly for cash of Preferred
Shares or Common Shares or securities that by their terms are convertible into
or exchangeable for Preferred Shares or Common Shares, (iv) stock dividend or
(v) issuance of rights, options or warrants referred to in this Section 11
hereafter made by the Company to holders of Preferred Shares or Common Shares is
not be taxable to such stockholders. 

(m)            No Diminishment of Benefit of Rights. The Company
covenants and agrees that, after the Distribution Date, it will not, except as
permitted by Section 23, Section 24 or Section 27, take (or permit to be taken)
any action if at the time that such action is taken it is reasonably foreseeable
that such action will diminish substantially or otherwise eliminate the benefits
intended to be afforded by the Rights. 

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(n)            Certain Adjustments to Common Shares.
Notwithstanding anything to the contrary in this Agreement, in the event that
the Company, at any time after the Rights Dividend Declaration Date and prior to
the Distribution Date, (i) declares or pays a dividend on the Common Shares
payable in Common Shares, (ii) subdivides or splits the outstanding Common
Shares (other than by the payment of dividends payable in Common Shares), (iii)
combines or consolidates the outstanding Common Shares (by reverse stock split
or otherwise) into a lesser number of Common Shares or (iv) issues any shares of
its capital stock in a reclassification of the Common Shares (including any such
reclassification in connection with a share exchange, consolidation or merger in which the Company is the continuing
or surviving corporation), then, in each such event, except as otherwise
provided in this Section 11 or Section 7(e): (A) each Common Share (or shares of
capital stock issued in such reclassification of the Common Shares) outstanding
immediately following such time will have associated with it the number of
Rights as were associated with one Common Share immediately prior to the
occurrence of such event; (B) the Exercise Price in effect at the time of the
record date for such dividend or of the effective date of such subdivision,
split, combination, consolidation or reclassification will be adjusted so that
the Exercise Price thereafter equals the result obtained by multiplying the
Exercise Price in effect immediately prior to such time by a fraction, the
numerator of which shall be the total number of Common Shares outstanding
immediately prior to such event and the denominator of which shall be the total
number of Common Shares outstanding immediately after such event;
provided, however, that in no event will 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 the exercise of such Right;
and (C) the number of one one-thousandths of a Preferred Share (or shares of
such other capital stock) issuable upon the exercise of each Right outstanding
after such event equals the number of one one-thousandths of a Preferred Share
(or shares of such other capital stock) as were issuable with respect to one
Right immediately prior to such event. Each Common Share that becomes
outstanding after an adjustment has been made pursuant to this Section 11(n)
will have issued with it that number of Rights, exercisable at the Exercise
Price and for the number of one one-thousandths of a Preferred Share (or shares
of such other capital stock), as one Common Share has associated with it
immediately following the adjustment made pursuant to this Section 11(n). If an
event occurs that would require an adjustment pursuant to both this Section
11(n) and Section 11(a)(ii), then the adjustment provided for in this Section
11(n) will be in addition to, and will be made prior to, any adjustment required
pursuant to Section 11(a)(ii). The adjustments provided for in this Section
11(n) will be made successively whenever such a dividend is declared or paid or
such a subdivision, split, combination, consolidation or reclassification is
effected. 

(o)            Adjustment of Rights Associated with Certain
Distributions. Other than in connection with a transaction contemplated by
Section 11(n), in the event that the Company, at any time after the Rights
Dividend Declaration Date and prior to the Distribution Date, issues or
distributes any securities or assets in respect of Common Shares (other than (A)
a distribution or dividend of its capital stock and (B) pursuant to any
non-extraordinary periodic cash dividend), then the Company will make such
adjustments, if any, in the Exercise Price or the number of Rights or securities
or other property purchasable upon exercise of Rights as the Board, in its sole
discretion, may deem to be appropriate under the circumstances in order to
adequately protect the interests of the holders of the Rights generally, and the
Company and the Rights Agent will amend this Agreement as necessary to provide
for such adjustments. 

Section 12. Certificate of Adjusted Exercise Price or Number
of Shares. Whenever an adjustment is made, or any event affecting the Rights
or their exercisability (including an event that causes the Rights to become
null and void) occurs as provided in Section 11 or Section 13, the Company must
promptly (a) prepare a certificate setting forth such adjustment or describing
such event and providing a brief statement of the facts and computations
accounting for such adjustment or event; (b) provide the Rights Agent and each
transfer agent for the Common Shares or Preferred Shares a copy of such
certificate; and (c) if a Distribution Date has occurred, mail a brief summary
of such adjustment or event to each holder of a Rights Certificate in accordance
with Section 25. Notwithstanding the foregoing, the failure of the Company to
make or provide such certification or notice will not affect the
validity of such adjustment or the force or effect of the requirement for such
adjustment. The Rights Agent will (i) be fully protected in relying on any such
certificate and on any adjustment or statement contained therein; (ii) have no
duty or liability with respect thereto; and (iii) not be deemed to have
knowledge of any such adjustment or event unless and until it has received such
certificate. 

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Section 13. Consolidation, Merger or Sale or Transfer of
Assets, Cash Flow or Earning Power. 

(a)            Certain Transactions. In the event that, following a
Shares Acquisition Date, directly or indirectly, (i) the Company consolidates
with, or merges with and into, any other Person (other than a wholly owned
Subsidiary of the Company in a transaction that complies with Section 11(m)) and
the Company is not be the continuing or surviving corporation of such
consolidation or merger, (ii) any Person (other than a wholly owned Subsidiary
of the Company in a transaction that complies with Section 11(m)) consolidates
with, or merges with and into, the Company, and the Company is the continuing or
surviving corporation of such consolidation or merger and, in connection with
such consolidation or merger, all or part of the Common Shares are changed into
or exchanged for stock or other securities of any other Person or the Company,
or cash or any other property, or (iii) the Company sells, exchanges, mortgages
or otherwise transfers (or one or more of its Subsidiaries sells, exchanges,
mortgages or otherwise transfers), in one transaction or a series of related
transactions, assets, cash flow or earning power aggregating to 50% or more of
the assets, cash flow or earning power of the Company and its Subsidiaries
(taken as a whole) to any other Person or Persons (other than the Company or one
or more of its wholly owned Subsidiaries in one or more transactions, each of
which individually (and together) complies with Section 11(m)), then, concurrent
with and in each such case, proper provision must be made so that (A) each
holder of a Right (except as provided in Section 7(e)) thereafter has the right
to receive, upon the exercise thereof at a price per Right equal to the Exercise
Price multiplied by the number of one one-thousandths of a Preferred Share for
which a Right was exercisable immediately prior to the occurrence of such
Section 13 Event in accordance with the terms of this Agreement, and in lieu of
Preferred Shares, such number of duly and validly authorized and issued and
fully paid and nonassessable and freely tradable Common Shares of the Principal
Party, free of any liens, encumbrances, rights of first refusal or other adverse
claims, as shall be equal to the result obtained by (1) multiplying the then
current Exercise Price by the number of one one-thousandths of a Preferred Share
for which a Right is exercisable immediately prior to the first occurrence of a
Section 13 Event (or, if a Section 11(a)(ii) Event has occurred prior to the
first occurrence of a Section 13 Event, multiplying the number of such one
one-thousandths of a Preferred Share for which a Right was exercisable
immediately prior to the first occurrence of a Section 11(a)(ii) Event by the
Exercise Price in effect immediately prior to such first occurrence of a Section
11(a)(ii) Event), and (2) dividing that product (which, following the first
occurrence of a Section 13 Event, will be referred to as the “Exercise Price”
for each Right and for all purposes of this Agreement) by 50% of the Current Per
Share Market Price of the Common Shares of such Principal Party on the date of
consummation of such Section 13 Event; provided, however, that the
price per Right so payable and the number of Common Shares of such Principal
Party so receivable upon exercise of a Right will be subject to further
adjustment as appropriate in accordance with Section 11(e) to reflect any events
covered thereby occurring in respect of the Common Shares of such Principal
Party after the occurrence of such Section 13 Event; (B) such Principal Party
will thereafter be liable for, and must assume, by virtue of such Section 13
Event, all the obligations and duties of  the Company pursuant to this Agreement; (C) the term “Company”
will thereafter be deemed to refer to such Principal Party, it being
specifically intended that the provisions of Section 11 will apply only to such
Principal Party following the first occurrence of a Section 13 Event; (D) such
Principal Party must take such steps (including the reservation of a sufficient
number of its Common Shares) in connection with the consummation of any such
transaction as may be necessary to ensure that the provisions hereof will
thereafter be applicable, as nearly as reasonably may be, in relation to its
Common Shares thereafter deliverable upon the exercise of the Rights; (E) the
provisions of Section 11(a)(ii) will be of no effect following the first
occurrence of any Section 13 Event; and (F) upon the subsequent occurrence of
any consolidation, merger, sale, exchange, mortgage, transfer or other
extraordinary transaction in respect of such Principal Party, each holder of a
Right will thereupon be entitled to receive, upon exercise of a Right and
payment of the Exercise Price as provided in this Section 13(a), such cash,
shares, rights, warrants and other property that such holder would have been
entitled to receive had such holder, at the time of such transaction, owned the
Common Shares of the Principal Party receivable upon the exercise of a Right
pursuant to this Section 13(a), and such Principal Party must take such steps
(including reservation of a sufficient number of shares of its capital stock) as
may be necessary to permit the subsequent exercise of the Rights in accordance
with the terms hereof for such cash, shares, rights, warrants and other
property. For purposes hereof, the “earning power” of the Company and its
Subsidiaries will be determined in good faith by the Board on the basis of the
operating income of each business operated by the Company and its Subsidiaries
during the three fiscal years preceding the date of such determination (or, in
the case of any business not operated by the Company or any of its Subsidiaries
during the three fiscal years preceding such date, during the period that such
business was operated by the Company or any of its Subsidiaries). 

-26- 

 

(b)            Principal Party. For purposes of this Agreement, the
term “Principal Party” means (i) in the case of any transaction described
in clause (i) or (ii) of Section 13(a) (A) the Person that is the issuer of the
securities into which the Common Shares are converted in the consolidation or
merger, or, if there is more than one such issuer, the issuer whose Common
Shares have the greatest aggregate market value of shares outstanding, or (B) if
no securities are so issued, (1) the Person that is the other party to the
consolidation or merger, if such Person survives the consolidation or merger,
or, if there is more than one such Person, the Person whose Common Shares have
the greatest aggregate market value of shares outstanding, (2) if the Person
that is the other party to the merger does not survive such consolidation or
merger, the Person that does survive such consolidation or merger (including the
Company if it survives) or (3) the Person resulting from the consolidation or
merger; and (ii) in the case of any transaction described in clause (iii) of
Section 13(a), the Person that is the party receiving the greatest portion of
the assets, cash flow or earning power transferred pursuant to such transaction
or transactions, or, if more than one Person that is a party to such transaction
or transactions receives the same portion of the assets or earning power so
transferred and each such portion would, were it not for the other equal
portions, constitute the greatest portion of the assets or earning power so
transferred, or if the Person receiving the greatest portion of the assets or
earning power cannot be determined, whichever of such Persons is the issuer of
Common Shares having the greatest aggregate market value of shares outstanding;
provided, however, that in the case of each of clause (i) and (ii)
of this Section 13(b), if the Common Shares of such Person are not at such time,
or have not been continuously over the preceding 12-month period, registered
pursuant to Section 12 of the Exchange Act, then if such Person is (x) a direct
or indirect Subsidiary of another Person whose Common Shares are and have
been so registered, the term “Principal Party” will refer to such other Person,
(y) a direct or indirect Subsidiary of more than one Person whose Common Shares
are and have been so registered, the term “Principal Party” will refer to
whichever of such Persons is the issuer of Common Shares having the greatest
aggregate market value of shares outstanding, or (z) if such Person is owned,
directly or indirectly, by a joint venture formed by two or more Persons that
are not owned, directly or indirectly, by the same Person, the rules set forth
in clauses (x) and (y) above will apply to each of the owners having an interest
in the venture as if the Person owned by the joint venture was a Subsidiary of
both or all of such joint venturers, and the Principal Party in each such case
must bear the obligations set forth in this Section 13 in the same ratio as its
interest in such Person bears to the total of such interests. 

-27- 

(c)            Certain Arrangements. The Company will not
consummate or permit to occur any Section 13 Event unless (A) the Principal
Party has a sufficient number of authorized, unissued and unreserved Common
Shares to permit the exercise in full of the Rights in accordance with this
Section 13 and (B) prior thereto the Company and the Principal Party have
executed and delivered to the Rights Agent a supplemental agreement confirming
that (1) the requirements of this Section 13 will be promptly performed in
accordance with their terms, (2) the Principal Party will, upon consummation of
such Section 13 Event, assume this Agreement in accordance with Section 13(a)
and Section 13(b), (3) such Section 13 Event will not result in a default by the
Principal Party pursuant to this Agreement (as it has been assumed by the
Principal Party) and (4) the Principal Party, as soon as practicable after the
date of such Section 13 Event and at its own expense, will: 

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

(ii)            use its best efforts to list (or continue the listing of)
the Rights and the securities purchasable upon exercise of the Rights on a
national securities exchange or to meet the eligibility requirements for
quotation on a national securities exchange and to list (and continue the
listing of) the Rights and the securities purchasable upon exercise of the
Rights on a national securities exchange; 

(iii)           deliver to holders of the Rights historical financial
statements for the Principal Party and its Affiliates that comply in all
respects with the requirements for registration on Form 10 (or any successor
form) promulgated under the Exchange Act; and 

(iv)           take all other action as may be necessary to allow the
Principal Party to issue the securities purchasable upon exercise of the Rights.

(d)            Prohibited Transactions. 

(i)           
Notwithstanding anything to the contrary in this Agreement, if the Principal
Party has a provision in any of its authorized securities or in its
organizational documents that would have the effect of (i) causing the
Principal Party to issue (other than to holders of Rights pursuant to Section
13), in connection with, or as a consequence of, the consummation of a Section
13 Event, Common Shares or common stock equivalents of the Principal Party at
less than the then Current Per Share Market Price thereof or securities
exercisable for, or convertible into, Common Shares or common stock equivalents
of the Principal Party at less than such Current Per Share Market Price, or (ii)
providing for any special payment, tax, charge or similar provision in
connection with the issuance of the Common Shares of the Principal Party
pursuant to the provisions of this Section 13, then the Company hereby agrees
with each holder of Rights that it will not consummate any such Section 13 Event
unless prior thereto the Company and such Principal Party have executed and
delivered to the Rights Agent a supplemental agreement providing that such
provision has been cancelled, waived, amended or rescinded, or that such
authorized securities will be redeemed, so that such provision will have no
effect in connection with, or as a consequence of, the consummation of such
Section 13 Event. 

-28- 

(ii)            Notwithstanding anything to the contrary in this
Agreement, the Company hereby agrees with each holder of Rights that it will not
consummate or permit to occur any Section 13 Event if (A) at the time or
immediately after such Section 13 Event there are any rights, warrants,
instruments or securities outstanding, or any agreements or arrangements, that,
as a result of the consummation of such Section 13 Event, would eliminate or
diminish in any material respect the benefits intended to be afforded by the
Rights; (B) all rights of first refusal or preemptive rights in respect of the
issuance of Common Shares or common stock equivalents of the Principal Party
upon exercise of outstanding Rights have not been irrevocably waived or rendered
inapplicable; (C) prior to, simultaneously with or immediately after such
Section 13 Event, the stockholders of the Person who constitutes, or would
constitute, the Principal Party have received a distribution of Rights
previously owned by such Person or any of its Affiliates or Associates; or (D)
the form or nature of organization of the Principal Party would preclude or
limit the exercisability of the Rights. 

(e)            Continued Applicability. The provisions of this
Section 13 will similarly apply to successive mergers, consolidations, sales,
exchanges, mortgages, transfers or other extraordinary transactions. In the
event that a Section 13 Event occurs at any time after the occurrence of a
Section 11(a)(ii) Event, then the Rights that have not theretofore been
exercised will thereafter become exercisable in the manner described in Section
13(a) (without taking into account any prior adjustment required by Section
11(a)(ii)). 

Section 14. Fractional Rights and Fractional Shares.

(a)            Cash in Lieu of Fractional Rights. The Company will
not be required to issue fractions of Rights (except prior to the Distribution
Date as provided in Section 11(n)) or to distribute Rights Certificates that
evidence fractional Rights. In lieu of such fractional Rights, the Company will
pay to the registered holders of the Rights Certificates with regard to which
such fractional Rights would otherwise be issuable an amount in cash equal to
the same fraction of the Current Per Share Market Price of a whole Right,
calculated as of the Trading Day immediately prior to the date on which such
fractional Rights would have been otherwise issuable. 

(b)            Cash in Lieu of Fractional Preferred Shares. The
Company will not be required to issue fractions of Preferred Shares (other than
fractions that are integral multiples of one one-thousandth of a Preferred Share) upon exercise or
exchange of the Rights or to distribute certificates that evidence fractional
Preferred Shares (other than fractions that are integral multiples of one
one-thousandth of a Preferred Share). Interests in fractions of Preferred Shares
in integral multiples of one one-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 the
Company; provided, however, that such agreement must provide that
the holders of such depositary receipts have all of 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 one-thousandth of a Preferred
Share, the Company may pay to the registered holders of Rights Certificates at
the time that such Rights are exercised or exchanged as provided herein an
amount in cash equal to the same fraction of the current market value of one
one-thousandth of a Preferred Share. For purposes of this Section 14(b), the
current market value of one one-thousandth of a Preferred Share will be one
one-thousandth of the Current Per Share Market Price of a Preferred Share,
calculated as of the Trading Day immediately prior to the date of such exercise
or exchange. 

-29- 

(c)            Cash in Lieu of Fractional Common Shares. The
Company is not required to issue fractions of Common Shares or to distribute
certificates that evidence fractional Common Shares upon the exercise or
exchange of Rights. In lieu of such fractional Common Shares, the Company may
pay to the registered holders of Rights Certificates at the time such Rights are
exercised or exchanged as provided herein an amount in cash equal to the same
fraction of the current market value of a Common Share. For purposes of this
Section 14(c), the current market value of a Common Share will be the Current
Per Share Market Price of a Common Share, calculated as of the Trading Day
immediately prior to the date of such exercise or exchange. 

(d)            Waiver of Fractional Rights. Except as permitted by
this Section 14, the holder of a Right, by the acceptance of such Right,
expressly waives such holder’s right to receive any fractional Rights or any
fractional shares of any security upon the exercise or exchange of a Right. 

(e)            Procedure for Payment. Whenever a payment for
fractional Rights, Preferred Shares or Common Shares is to be made by the Rights
Agent pursuant to this Agreement, the Company will (i) promptly prepare and
deliver to the Rights Agent a certificate setting forth in reasonable detail the
facts related to such payment and the prices or formulas utilized in calculating
such payments; and (ii) provide sufficient monies to the Rights Agent to make
such payments. The Rights Agent will be fully protected in relying upon such
certificate and will have no duty with respect thereto, and will not be deemed
to have knowledge of any payment for fractional Rights, Preferred Shares or
Common Shares pursuant to this Agreement unless and until the Rights Agent has
received such certificate and sufficient monies. 

Section 15. Rights of Action. All rights of action in
respect of this Agreement, except those rights of action given to the Rights
Agent pursuant to Section 18, are vested in the respective registered holders of
the Rights Certificates (and, prior to the Distribution Date, the registered
holders of Common Shares). Any registered holder of any Rights Certificate (or,
prior to the Distribution Date, any registered holders of Common Shares),
without the consent of the Rights Agent or of the holder of any other Rights
Certificate (or, prior to the Distribution Date, any other holder of Common Shares), may, on such holder’s own
behalf and for such holder’s own benefit and the benefit of other holders of
Rights, enforce, and may institute and maintain any suit, action or proceeding
against the Company to enforce, this Agreement or otherwise act in respect of
such holder’s right to exercise such holder’s Rights evidenced by such Rights
Certificate in the manner provided in such Rights Certificate and in this
Agreement. Without limiting the foregoing or any remedies available to the
holders of Rights, it is specifically acknowledged that the holders of Rights
would not have an adequate remedy at law for any breach of this Agreement and
will be entitled to specific performance of the obligations of any Person
(including the Company) subject to this Agreement, and injunctive relief against
actual or threatened breaches or violations of this Agreement by any Person
(including the Company), in each case without having to post a bond. 

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Section 16. Agreement of Rights Holders. Every holder of
a Right, by accepting the same, consents and agrees with the Company and the
Rights Agent and with every other holder of a Right that: 

(a)            prior to the Distribution Date, the Rights will not be
evidenced by a Rights Certificate and will be transferable only in connection
with the transfer of the Common Shares; 

(b)            after the Distribution Date, the Rights Certificates are
transferable only on the transfer books of the Rights Agent if surrendered at
the office of the Rights Agent designated for such purpose, duly endorsed or
accompanied by a proper instrument of transfer and with the appropriate forms
and certificates fully completed; 

(c)            subject to Section 6(a) and Section 7(f), the Company and
the Rights Agent may deem and treat the Person in whose name the Rights
Certificate (or, prior to the Distribution Date, the associated certificate for
Common Shares or Book Entry Shares, as applicable) is registered as the absolute
owner thereof and of the Rights evidenced thereby (notwithstanding any notations
of ownership or writing on the Rights Certificates or the associated certificate
for Common Shares or Book Entry Shares, as applicable, made by anyone other than
the Company or the Rights Agent) for all purposes whatsoever, and neither the
Company nor the Rights Agent (subject to Section 7(e)) will be affected by any
notice to the contrary; 

(d)            notwithstanding anything to the contrary in this Agreement,
neither the Company nor the Rights Agent will have any liability to any holder
of a Right (or a beneficial interest in a Right) or other Person as a result of
the inability of the Company or the Rights Agent to perform any of their
respective obligations pursuant to 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 of competent jurisdiction 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 will use all reasonable efforts to have any such injunction, order,
judgment, decree or ruling lifted or otherwise overturned as promptly as
practicable; 

(e)            Rights that are Beneficially Owned by certain Persons will,
under the circumstances set forth in Section 7(e), become null and void; and

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(f)            this Agreement may be supplemented or amended from time to
time in accordance with Section 27. 

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

Section 18. Concerning the Rights Agent. 

(a)            Compensation; Reimbursement; Indemnification. 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, the reasonable and documented out-of-pocket expenses and counsel
fees and other disbursements incurred by the Rights Agent in connection with the
preparation, negotiation, delivery, execution, amendment and administration 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 the reasonable and documented fees of its
outside counsel) incurred without gross negligence, bad faith or willful
misconduct on the part of the Rights Agent (which gross negligence, bad faith or
willful misconduct must be determined by a final, non-appealable judgment of a
court of competent jurisdiction) for any action taken, suffered or omitted to be
taken by the Rights Agent in connection with the acceptance, administration,
exercise and performance of its duties pursuant to this Agreement, including the
costs and expenses of defending against any claim of liability and appealing any
claim of liability arising therefrom, directly or indirectly. The provisions of
this Section 18 and Section 20 will survive the termination of this Agreement,
the exercise, exchange or expiration of the Rights and the resignation,
replacement or removal of the Rights Agent.

(b)            Reliance by the Rights Agent. The Rights Agent is
authorized to rely conclusively on, and will be protected and incur no liability
for, or in respect of any action taken, suffered or omitted to be taken by it in
connection with its acceptance and administration of this Agreement, and the
exercise and performance of its duties pursuant to this Agreement, in reliance
upon any (i) Rights Certificate, (ii) certificate (or registration on the
transfer books of the Company, including, in the case of uncertificated shares,
by notation in book entry accounts reflecting ownership) for Preferred Shares,
Common Shares or other securities of the Company issuable upon exercise of
Rights or (iii) instrument of assignment or transfer, power of attorney,
endorsement, affidavit, letter, notice, direction, consent, certificate,
statement or other paper or document reasonably believed by it, in the absence
of gross negligence, bad faith or willful misconduct (which gross negligence,
bad faith or willful misconduct must be determined by a final, non-appealable judgment of a court of competent
jurisdiction), to be genuine and to be duly executed and, where necessary,
verified or acknowledged, by the proper Person, or otherwise upon the advice of
counsel as set forth in Section 20. The Rights Agent will not be required to
take notice, or be deemed to have any knowledge, of any fact, event or
determination of which it was supposed to receive notice hereunder (including
any dates or events defined in this Agreement or the designation of any Person
as an Acquiring Person or an Affiliate or Associate of an Acquiring Person), and
the Rights Agent will be fully protected and will incur no liability for failing
to take action in connection therewith, unless and until it has received such
notice in writing. 

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Section 19. Merger, Consolidation or Change of Name of
Rights Agent. 

(a)            Merger or Consolidation 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 or be consolidated, or any Person resulting
from any merger, share exchange or consolidation to which the Rights Agent or
any successor Rights Agent is a party, or any Person succeeding to the corporate
trust, stock transfer or stockholder services business of the Rights Agent or
any successor Rights Agent, will be the successor to the Rights Agent pursuant
to this Agreement without the execution or filing of any paper or any further
act on the part of any of the parties hereto so long as such Person is eligible
for appointment as a successor Rights Agent pursuant to the provisions of
Section 21. The purchase of all or substantially all of the Rights Agent’s
assets employed in the performance of this Agreement, or transfer or rights
agent services generally, will be deemed to be a merger, share exchange or
consolidation for purposes of this Section 19. If at the time that such
successor Rights Agent succeeds to the agency created by this Agreement any of
the Rights Certificates have been countersigned but not delivered, then any such
successor Rights Agent may adopt the countersignature of any predecessor Rights
Agent and deliver such Rights Certificates so countersigned, and if at that time
any of the Rights Certificates have not been countersigned, then any successor
Rights Agent may countersign such Rights Certificates either in the name of the
predecessor Rights Agent or in the name of the successor Rights Agent. In all
such cases, such Rights Certificates will have the full force and effect
provided in the Rights Certificates and in this Agreement. 

(b)            Change of Name of Rights Agent. If at any time the
name of the Rights Agent is changed and at such time any of the Rights
Certificates have been countersigned but not delivered, then the Rights Agent
may adopt the countersignature under its prior name and deliver such Rights
Certificates so countersigned, and if at any time any of the Rights Certificates
have not have been countersigned, then the Rights Agent may countersign such
Rights Certificates either in its prior name or in its changed name. In all such
cases, such Rights Certificates will have the full force and effect provided in
the Rights Certificates and in this Agreement. 

Section 20. Duties of Rights Agent. The Rights Agent
undertakes to perform the duties and obligations imposed by this Agreement (and
no implied duties or obligations) upon the following terms and conditions, all
of which the Company and the holders of Rights Certificates, by their acceptance
thereof, will be bound: 

(a)            Before the Rights Agent acts or refrains from acting, the
Rights Agent may consult with legal counsel that it selects (who may be legal
counsel for the Company or an employee of the Rights Agent), and the advice or
opinion of such counsel will be full and complete authorization and protection to the Rights Agent, and
the Rights Agent will incur no liability for or in respect of, any action taken,
suffered or omitted to be taken by it in the absence of gross negligence, bad
faith or willful misconduct (which gross negligence, bad faith or willful
misconduct must be determined by a final, non-appealable judgment of a court of
competent jurisdiction) in accordance with such advice or opinion. 

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(b)            Whenever in the performance of its duties pursuant to this
Agreement the Rights Agent deems it necessary or desirable that any fact or
matter (including the identity of any 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, suffering or omitting to take any action hereunder,
such fact or matter (unless other evidence in respect thereof is specifically
prescribed herein) 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 or the Chief Financial Officer of the Company and delivered to the
Rights Agent, and such certificate will be full and complete authorization and
protection to the Rights Agent, and the Rights Agent will incur no liability for
or in respect of any action taken, suffered or omitted to be taken in the
absence of gross negligence, bad faith or willful misconduct (which gross
negligence, bad faith or willful misconduct must be determined by a final,
non-appealable judgment of a court of competent jurisdiction) by it pursuant to
the provisions of this Agreement in reliance upon such certificate. 

(c)            The Rights Agent will be liable hereunder to the Company
and any other Person only for its and its directors’, officers’, employees’,
Affiliates’, agents’, advisors’ and representatives’ own gross negligence, bad
faith or willful misconduct (which gross negligence, bad faith or willful
misconduct must be determined by a final, non-appealable judgment of a court of
competent jurisdiction). In no event will the Rights Agent be liable for
special, indirect or consequential loss or damage of any kind whatsoever
(including lost profits), even if the Rights Agent has been advised of the
possibility of such loss or damage. 

 (d)            The Rights Agent will not be liable hereunder for or
by reason of any of the statements of fact or recitals contained in this
Agreement, the Rights Certificates or any certificate (or registration on the
transfer books of the Company, including, in the case of uncertificated shares,
by notation in book entry accounts reflecting ownership) for Preferred Shares,
Common Shares or other securities of the Company issuable upon exercise of
Rights, or be required to verify the same (except, in each case, its
countersignature thereof, if applicable), and all such statements and recitals
are and will be deemed to have been made by the Company only. 

(e)            The Rights Agent will not (i) have any liability for or be
under any responsibility in respect of the validity of this Agreement or the
execution and delivery hereof (except the due authorization, execution and
delivery hereof by the Rights Agent) or in respect of the validity or execution
of any Rights Certificate (except its countersignature thereof) or any
certificate (or registration on the transfer books of the Company, including, in
the case of uncertificated shares, by notation in book entry accounts reflecting
ownership) for Preferred Shares, Common Shares or other securities of the
Company issuable upon exercise of Rights (except, in each case, its
countersignature thereof, if applicable); (ii) be responsible for any change in
the exercisability or exchangeability of Rights (including certain Rights
becoming null and void pursuant to Section 7(e)), except with respect to the
exercise of Rights evidenced by Rights Certificates after notice of such change
has been provided by the Company; (iii) be responsible for any breach by the Company of any covenant or
condition contained in this Agreement or any Rights Certificate; (iv) be
responsible for (A) any adjustment or change required pursuant to Section 3,
Section 11, Section 13, Section 23 or Section 24, (B) the manner, method or
amount of any such adjustment or change or (C) ascertaining the existence of
facts that would require any such adjustment or change (except with respect to
the exercise of Rights evidenced by Rights Certificates after receipt by the
Rights Agent of a certificate furnished pursuant to Section 12 describing such
adjustment or change); (v) be responsible for any determination by the Board of
the Current Per Share Market Price of any security pursuant to this Agreement;
or (vi) by any act hereunder be deemed to make any representation or warranty as
to the authorization or reservation of any securities to be issued pursuant to
this Agreement or any Rights Certificate or as to whether any such securities
will, when issued, be duly and validly authorized and issued and fully paid and
nonassessable. 

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(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 its duties pursuant to 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 of the Chairman of the Board, the Chief Executive Officer or the Chief
Financial Officer of the Company, and it is authorized to apply to any such
director or officer for advice or instructions in connection with its duties
pursuant to this Agreement. Such advice and instructions will be full and
complete authorization and protection to the Rights Agent, and the Rights Agent
will not be liable for or in respect of any action taken, suffered or omitted to
be taken by it in accordance with the written advice or instructions of any such
director or officer or for any delay in acting while waiting for those
instructions, in each case in the absence of gross negligence, bad faith or
willful misconduct (which gross negligence, bad faith or willful misconduct must
be determined by a final, non-appealable judgment of a court of competent
jurisdiction). The Rights Agent will be fully and completely authorized and
protected in relying on the latest-dated instructions received from any such
director or 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 pursuant to this Agreement and the date on or after which such
action will be taken, suffered or omitted to be taken. The Rights Agent will not
be liable for any action taken or suffered by, or omission of, the Rights Agent
in accordance with a proposal included in any such application on or after the
date specified in such application (which date must not be less than 10 Business
Days after, but not including, the date on which any such director or officer of
the Company actually receives such application, unless any such director or
officer has consented in writing to an earlier date) unless, prior to taking any
such action (or the effective date in the case of an omission), the Rights Agent
has received, in response to such application, written instructions with respect
to the proposed action or omission specifying a different action to be taken,
suffered or omitted to be taken. 

(h)            The Rights Agent and any member, stockholder, director,
officer, employee or Affiliate of the Rights Agent (in each case, other than an
Acquiring Person) 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
pursuant to this Agreement. Nothing herein will preclude the Rights Agent
or any such member, stockholder, director, officer, employee or Affiliate from
acting in any other capacity for the Company or for any other Person. 

-35- 

(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
(including through its directors, officers and employees) or by or through its
attorneys or agents, and the Rights Agent will not be answerable or accountable
for any act, omission, default, neglect or misconduct of any such attorneys or
agents or for any loss to the Company, to the holders of Rights or to any other
Person resulting from any such act, omission, default, neglect or misconduct in
the absence of gross negligence, bad faith or willful misconduct in the
selection and continued employment thereof (which gross negligence, bad faith or
willful misconduct must be determined by a final, non-appealable judgment of a
court of competent jurisdiction). 

(j)            No provision of this Agreement requires the Rights Agent to
expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder (other than costs and expenses
incurred by the Rights Agent in providing services to the Company in the
ordinary course of its business as the Rights Agent) or in the exercise of its
rights if it reasonably believes, after consultation with counsel, that
repayment of such funds or adequate indemnification against such risk or
liability is not reasonably assured to it. 

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

(l)            From time to time after the Distribution Date, upon the
written request of the Company, the Rights Agent will promptly deliver to the
Company a list, as of the most recent practicable date (or as of such earlier
date as may be specified by the Company), of the record holders of Rights and
Rights Certificates. 

Section 21. Change of Rights Agent.
The Rights Agent or any successor Rights Agent may resign and be discharged from
its duties pursuant to this Agreement upon 30 days’ written notice to the
Company (or such lesser notice as is acceptable to the Company) and to each
transfer agent of the Preferred Shares and the Common Shares (in the event that
the Rights Agent or one of its Affiliates is not also such transfer agent),
delivered to the Company in accordance with Section 26. In the event that any
transfer agency relationship in effect between the Company and the Rights Agent
or any of its Affiliates terminates, the Rights Agent will be deemed to have
automatically resigned and be discharged from its duties under this Agreement on
the effective date of such termination, and the Company will be responsible for
sending any required notices. The Company may remove the Rights Agent or any
successor Rights Agent, with or without cause, upon 30 days’ notice in writing
to the Rights Agent or any successor Rights Agent, as the case may be, and to
each transfer agent of the Preferred Shares and the Common Shares (in the event
that the Rights Agent or one of its Affiliates is not also such transfer agent),
delivered to the Rights Agent in accordance with Section 26. If the Rights Agent
resigns or is removed or otherwise becomes incapable of acting, then the
resigning, removed or incapacitated Rights Agent must, upon the Company’s request, remit to the Company or
to any successor Rights Agent, all books, records, funds, certificates or other
documents or instruments of any kind then in its possession that were acquired
by such resigning, removed or incapacitated Rights Agent in connection with its
services as the Rights Agent in accordance with its record retention policy.
Following such removal, resignation or incapacity, the Company will appoint a
successor to the Rights Agent. If the Company fails to make such appointment
within a period of 30 days after giving written 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 registered holder of a Rights
Certificate (who must, together with such notice, submit such registered
holder’s Rights Certificate for inspection by the Company), then any registered
holder may apply, at the Company’s expense, to a court of competent jurisdiction
for the appointment of a new Rights Agent. Any successor Rights Agent, whether
appointed by the Company or by such court, must be either (a) a Person
organized, in good standing and doing business pursuant to the laws of the
United States or any state of the United States that is authorized pursuant to
such laws to exercise corporate trust, stock transfer or stockholder services,
is subject to supervision or examination by federal or state authorities and has
at the time of its appointment as Rights Agent a combined capital and surplus of
at least $50,000,000 or (b) an Affiliate or direct or indirect wholly owned
Subsidiary of such Person. After appointment, the successor Rights Agent will 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, and the
predecessor Rights Agent must 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 such purpose. Not later
than the effective date of any such appointment, the Company will file notice
thereof in writing with the predecessor Rights Agent and each transfer agent of
the Preferred Shares and the Common Shares (in the event that the Rights Agent
or one of its Affiliates is not also such transfer agent), and deliver such
notice to the holders of Rights Certificates in accordance with Section 26.
Notwithstanding anything to the contrary in this Agreement, failure to give any
notice provided for in this Section 21, or any defect therein, will 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. Upon
appointment, any successor Rights Agent will, unless the context requires
otherwise, be deemed to be the Rights Agent for all purposes of this Agreement. 

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Section 22. Issuance of New Rights Certificates.
Notwithstanding anything to the contrary in this Agreement or the Rights, the
Company may, at its option, issue new Rights Certificates evidencing Rights in
such form as may be approved by the Board to reflect any adjustment or change in
the Exercise Price and the number or kind or class of shares or other securities
or property purchasable pursuant to the Rights Certificates made in accordance
with the provisions of this Agreement. In addition, in connection with the
issuance or sale of Common Shares following the Distribution Date and prior to
the Expiration Date, the Company will, with respect to Common Shares so issued
or sold (whether pursuant to the exercise of stock options or pursuant to any
employee benefit plan or arrangement or upon the exercise, conversion or
exchange of other securities of the Company outstanding as of the Rights
Dividend Declaration Date or upon the exercise, conversion or exchange of
securities issued by the Company after the Rights Dividend Declaration Date
(except, in each case, as may otherwise be provided in the instruments governing
such securities)), and may, in any other case, if deemed necessary or
appropriate by the Board, issue Rights Certificates representing the appropriate
number of Rights in connection with such issuance or sale; provided,
however, that (a) no such Rights Certificate will be issued if, and to the extent that, the Company is
advised by counsel that such issuance would create a significant risk of or
result in material adverse tax consequences to the Company or the Person to whom
such Rights Certificate would be issued or would create a significant risk of or
result in such options or employee plans or arrangements failing to qualify for
otherwise available special tax treatment; (b) no such Rights Certificate will
be issued if, and to the extent that, appropriate adjustment will otherwise have
been made in lieu of the issuance thereof; and (c) the Company will have no
obligation to distribute Rights Certificates to any Acquiring Person, Affiliate
or Associate of an Acquiring Person, Post-Event Transferee, Pre-Event
Transferee, Subsequent Transferee or any nominee of any of the foregoing. 

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Section 23. Redemption. 

(a)            Right to Redeem. The Board may, at its option, at
any time prior to the earlier of (i) the Distribution Date or (ii) the Close of
Business on the Final Expiration Date, redeem all but not less than all of the
then outstanding Rights at a redemption price of $0.001 per Right, as such
amount may be appropriately adjusted to reflect any stock split, stock dividend,
recapitalization or similar transaction occurring after the Rights Dividend
Declaration Date (such redemption price, the “Redemption Price”).
Notwithstanding anything to the contrary in this Agreement, the Rights will not
be exercisable after the first occurrence of a Section 11(a)(ii) Event until
such time as the Company’s right of redemption pursuant to this Section 23 has
expired. The Company may, at its option, pay the Redemption Price in Common
Shares (based on the Current Per Share Market Price of Common Shares at the time
of redemption), cash or any other form of consideration deemed appropriate by
the Board, in its sole discretion, to be at least equivalent to the Redemption
Price. Such redemption of the Rights by the Board may be made effective at such
time, on such basis and with such conditions as the Board in its sole discretion
may establish. The date on which the Board elects to make the redemption
effective is referred to as the “Redemption Date.” 

(b)            General Redemption Procedures. Immediately upon the
action of the Board ordering the redemption of the Rights (or at such later time
as the Board may establish for the effectiveness of such redemption), evidence
of which will have been filed with the Rights Agent, 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 will be to receive the
Redemption Price for each Right so held. The Company will promptly give public
notice of any such redemption (with prompt written notice thereof also provided
to the Rights Agent). Promptly after the action of the Board ordering the
redemption of the Rights, the Company will give, or cause to be given, notice of
such redemption to the holders of Rights Certificates in accordance with Section
26; provided, however, that any notice that is so provided will be
deemed given, whether or not the holder receives the notice. Each such notice of
redemption must state the method by which the payment of the Redemption Price is
to be made. The failure to give, or any defect in, any notice required by this
Section 23 will not affect the legality or validity of the action taken by the
Board or of the redemption. 

(c)            Discharge of Obligations. Notwithstanding anything
to the contrary in this Agreement, in the event of a redemption pursuant to
Section 23(a), the Company may, at its option, discharge all of its obligations
with respect to the Rights by (i) issuing a press release or making a
publicly-available filing with the Securities and Exchange Commission announcing
the manner of redemption of the Rights and (ii) mailing payment of the
Redemption Price to the holders of Rights at the addresses of such holders as shown on
the transfer books of the Rights Agent or, prior to the Distribution Date, on
the transfer books of the Company or the transfer agent for the Common Shares,
and upon such action, all outstanding Right Certificates will be void without
any further action by the Company. 

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(d)            Prohibited Purchases. Notwithstanding anything to
the contrary in this Agreement, 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 as specifically set forth in this Section 23 or in Section
24, or other than in connection with the purchase or repurchase of Common Shares
prior to the Distribution Date. 

Section 24. Exchange. 

(a)            Exchange of Common Shares for Rights. The Board may,
at its option, at any time after any Person becomes an Acquiring Person,
exchange all or part of the then outstanding and exercisable Rights (which will
not include Rights that have become null and void pursuant to the provisions of
Section 7(e)) for Common Shares at an exchange ratio of one Common Share per
Right, appropriately adjusted to reflect any stock split, stock dividend,
recapitalization or similar transaction occurring after the Rights Dividend
Declaration Date (such exchange ratio, the “Exchange Ratio,” and such
determination by the Board to effect such exchange, an “Exchange
Determination”). Notwithstanding the foregoing, from and after the
occurrence of a Section 13 Event, any Rights that theretofore have not been
exchanged pursuant to this Section 24(a) will thereafter be exercisable only in
accordance with Section 13 and may not be exchanged (or eligible for exchange)
pursuant to this Section 24(a). 

(b)            Exchange Procedures. 

(i)            Immediately following an Exchange Determination and without
any further action or notice, the right to exercise such Rights will terminate
and the only right thereafter of a holder of such Rights is 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 will promptly give public notice
of any such exchange (with prompt written notice thereof also provided to the
Rights Agent), and thereafter will promptly give, or cause to be given, notice
of such exchange to the holders of the then outstanding Rights (other than
Rights that have become null and void pursuant to the provisions of Section
7(e)) by mailing such notice, in accordance with Section 26; provided,
however, that any notice that is so provided will be deemed given,
whether or not the holder receives the notice. Each such notice of exchange must
state the method by which the exchange of Common Shares for Rights is to be
effected (including the actions that must be taken by the holders of Rights to
receive Common Shares in exchange for Rights) and, in the event of any partial
exchange, the number of Rights that are to be exchanged. Any partial exchange
will be effected pro rata based on the number of Rights (other than Rights that
have become null and void pursuant to the provisions of Section 7(e)) held by
each holder of Rights. Following an Exchange Determination, the Company may
implement such procedures as it deems appropriate, in its sole discretion, to
minimize the possibility that any Common Shares (or other consideration)
issuable pursuant to this Section 24 are received by Persons whose Rights are
null and void pursuant to Section 7(e). Prior to effecting any exchange, the
Company may require, or cause the trustee of the Trust to require, as a
condition thereof, that any registered holder of Rights provide such evidence
(including the identity of the Beneficial Owner (or former Beneficial Owner) thereof and the Affiliates or Associates of
such Beneficial Owner or former Beneficial Owner) as the Company may reasonably
request in order to determine if such Rights are null and void pursuant to
Section 7(e). If such registered holder does not comply with the foregoing
requirements, then the Company will be entitled to conclusively deem such Rights
to be Beneficially Owned by an Acquiring Person (or an Affiliate or Associate of
an Acquiring Person, a Post-Event Transferee, a Pre-Event Transferee, a
Subsequent Transferee or any nominee of any of the foregoing) and, accordingly,
such Rights will be null and void and not exchangeable in connection herewith.
Any Common Shares (or other securities) issued at the direction of the Board in
connection with an Exchange Determination will be duly and validly authorized
and issued and fully paid and nonassessable, and the Company will be deemed to
have received as consideration for such issuance a benefit having a value that
is at least equal to the aggregate par value of the Common Shares (or other
securities) so issued. The failure to give, or any defect in, any notice
required by this Section 24 will not affect the legality or validity of the
action taken by the Board or of such exchange. 

-39- 

(ii)            The exchange of the Rights pursuant to Section 24(a) may
be made effective at such time, on such basis and with such conditions as the
Board, in its sole discretion, may establish. Without limiting the foregoing,
prior to effecting an exchange pursuant to Section 24(a), the Board may direct
the Company to enter into a trust agreement in such form and with such terms as
the Board approves (the “Trust Agreement”). If the Board so directs, then
the Company must enter into the Trust Agreement and must issue to the trust
created by such agreement (the “Trust”) all of the Common Shares (or
other consideration) issuable pursuant to the exchange (or any portion thereof
that has not theretofore been issued in connection with the exchange). From and
after the time at which such Common Shares (or other consideration) are issued
to the Trust, all stockholders then entitled to receive Common Shares (or other
consideration) pursuant to the exchange will be entitled to receive such shares
or consideration (and any dividends or distributions made thereon after the date
on which such shares or consideration are deposited into the Trust) only from
the Trust and solely upon compliance with the relevant terms and provisions of
the Trust Agreement. 

(c)            Insufficient Shares. In the event that there are not
sufficient Common Shares issued but not outstanding or authorized but unissued
to permit any exchange of Rights as contemplated in accordance with Section
24(a), then the Company will either take such action as may be necessary to
authorize additional Common Shares for issuance upon exchange of the Rights or
alternatively, at the option of the Board, with respect to each Right (i) pay
cash in an amount equal to the Current Exchange Value in lieu of issuing Common
Shares in exchange therefor; (ii) issue debt or equity securities (or a
combination thereof) having a value equal to the Current Exchange Value in lieu
of issuing Common Shares in exchange for each such Right, where the value of
such securities will be determined by the Board based upon the advice of a
nationally recognized investment banking firm selected by the Board, which
determination will be described in a written statement filed with the Rights
Agent and will be binding on the Rights Agent and the holders of Rights; or
(iii) deliver any combination of cash, property, Common Shares, Preferred
Shares, Equivalent Shares or other securities having a value equal to the
Current Exchange Value in exchange for each Right. To the extent that the
Company determines that some action need be taken pursuant to this Section
24(c), then the Board may temporarily suspend the exercisability of the Rights
for a period of up to 120 days following the date on which the Exchange
Determination has occurred in order to seek any authorization of additional
Common Shares or to decide the appropriate form of distribution to be made
pursuant to the above provision and to determine the value thereof. Upon any
such suspension, the Company will issue a public announcement stating, and
notify the Rights Agent in writing, that the exercisability of the Rights has
been temporarily suspended, as well as issue a public announcement, and notify
the Rights Agent in writing, at such time as the suspension is no longer in
effect. 

-40- 

(d)            Cash in Lieu of Fractional Common Shares. In
connection with an Exchange Determination, the Company will not be required to
issue fractions of Common Shares or to distribute certificates that evidence
fractional Common Shares. In lieu of such fractional Common Shares, the Company
may pay to the registered holders of Rights 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 Per Share Market Price of a Common
Share, calculated as of the Trading Day immediately prior to the date of the
Exchange Determination. 

Section 25. Notice of Certain Events. 

(a)            Certain Distributions. If the Company proposes, at
any time after the Distribution Date, to (i) declare or pay any dividend payable
in stock of any class to the holders of Preferred Shares or to make any other
distribution to the holders of Preferred Shares (other than a regular quarterly
or periodic cash dividend out of earnings or retained earnings of the Company),
(ii) offer to the holders of 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) effect any
reclassification of the Preferred Shares (other than a reclassification
involving only the subdivision of outstanding Preferred Shares), (iv) effect any
share exchange, consolidation or merger into or with any other Person (other
than a wholly owned Subsidiary of the Company in a transaction that complies
with Section 11(m)), (v) effect any sale or other transfer (or permit one or
more of its Subsidiaries to effect any sale or other transfer), in one
transaction or a series of related transactions, of more than 50% of the assets,
cash flow or earning power of the Company and its Subsidiaries (taken as a
whole) to any other Person, (vi) effect the liquidation, dissolution or winding
up of the Company, (vii) declare or pay any dividend on the Common Shares
payable in Common Shares or (viii) 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
will give written notice of such proposed action to the Rights Agent and the
holders of Rights Certificates in accordance with Section 26, which notice must
specify the record date for the purposes of such stock dividend, distribution of
rights or warrants, or the date on which such subdivision, combination,
reclassification, share exchange, consolidation, merger, sale, transfer,
liquidation, dissolution or winding up is to take place and the date of
participation therein by the holders of Preferred Shares or Common Shares, if
any such date is to be fixed, and such notice must be so given in the case of
any action covered by clause (i) or (ii) above at least 10 Business Days prior
to but not including the record date for determining holders of Preferred Shares
for purposes of such action, and in the case of any such other action, at least
10 Business Days prior to but not including the date of the taking of such
proposed action or the date of participation therein by the holders of Preferred
Shares or Common Shares, whichever is earlier. 

(b)            Certain Events. If any Triggering Event has
occurred, then (i) the Company will as soon as practicable thereafter give, or
cause to be given, to each holder of Rights Certificates a notice in accordance
with Section 26 of the occurrence of such Triggering Event, which notice must specify the event and the consequences
of the event to holders of Rights pursuant to Section 11(a)(ii) or Section 13,
and (ii) all references in this Section 25 to Preferred Shares will thereafter
be deemed to be references to Common Shares or, if appropriate, other
securities. 

-41- 

Section 26. Notices. Notices or demands authorized by
this Agreement to be given or made by the Rights Agent or by the holder of any
Rights Certificate to or on the Company will be sufficiently given or made if in
writing and sent by a recognized national overnight delivery service, fax (when
such fax is transmitted to the fax number set forth below and confirmation of
transmission is received) or first-class mail, postage prepaid, addressed (until
another address is filed in writing with the Rights Agent by the Company) as
follows: 

China Biologic Products, Inc. 
18th
Floor, Jialong International Building
19 Chaoyang Park Road
Chaoyang
District, Beijing 100125
People’s Republic of China
Attention: Corporate
Secretary 
Fax: 8610 6598 3222 

with a copy (which will not constitute
notice) to: 

Wilson Sonsini Goodrich & Rosati

Professional Corporation 
Unit 2901, 29/F Building C
Beijing Yintai
Center 
2 Jianguomenwai Street 
Chaoyang District, Beijing 10022

People’s Republic of China 
Attention: Kefei Li
Fax: 8610 6529 8399

Subject to the provisions of Section 21, any notice or demand
authorized by this Agreement to be given or made by the Company or by the holder
of any Rights Certificate to or on the Rights Agent will be sufficiently given
or made if in writing and sent by a recognized national overnight delivery
service, fax (when such fax is transmitted to the fax number set forth below and
confirmation of transmission is received) or first-class mail, postage prepaid,
addressed (until another address is filed in writing with the Company by the
Rights Agent) as follows: 

	 	Securities Transfer Corporation
	 	2591 Dallas Parkway, Suite #102
	 	Frisco, Texas 75034
	 	United States
	 	Attention: Kevin Halter, Jr.
	 	Fax: 469 633 0069

-42- 

Notices or demands authorized by this Agreement to be given or
made by the Company or the Rights Agent to the holders of Rights or Rights
Certificates (or, if prior to the Distribution Date, to the holders of Common
Shares) will be sufficiently given or made if in writing and sent by a
recognized national overnight delivery service or first-class mail, postage
prepaid, addressed to such holder at the address of such holder as shown on the
transfer books of the Rights Agent or the Company or the transfer agent for the
Common Shares. Any notice that is sent or mailed in the manner herein provided
will be deemed given whether or not the holder receives the notice.
Notwithstanding anything to the contrary in this Agreement, prior to the
Distribution Date, the issuance of a press release or the making of a
publicly-available filing by the Company with the Securities and Exchange
Commission will constitute sufficient notice by the Rights Agent or the Company
to the holders of securities of the Company, including the Rights, for all
purposes of this Agreement and no other notice need be given. 

Section 27. Supplements and Amendments. Prior to the
occurrence of a Distribution Date, the Company may in its sole discretion
supplement or amend this Agreement in any respect without the approval of any
holders of Rights Certificates, Preferred Shares or Common Shares, and the
Rights Agent must, if the Company so directs, execute such supplement or
amendment. From and after the occurrence of a Distribution Date, the Company and
the Rights Agent may from time to time supplement or amend this Agreement
without the approval of any holders of Rights Certificates in order to (i) cure
any ambiguity, (ii) correct or supplement any provision contained herein that
may be defective or inconsistent with any other provisions herein or otherwise
defective, including any change in order to satisfy any applicable law, rule or
regulation, (iii) shorten or lengthen any time period hereunder or (iv) change
or supplement the provisions hereunder in any manner that the Company may deem
necessary or desirable and that does not adversely affect the interests of the
holders of Rights (other than an Acquiring Person, an Affiliate or Associate of
an Acquiring Person, a Post-Event Transferee, a Pre-Event Transferee, a
Subsequent Transferee or any nominee of any of the foregoing), including
extending the Final Expiration Date; provided, however, that this
Agreement may not be supplemented or amended to lengthen, pursuant to clause
(iii) of this sentence, a time period relating to when the Rights may be
redeemed at a time when the Rights are not then redeemable; provided
further, however, that the right of the Board to extend the
Distribution Date does not require any amendment or supplement hereunder. 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 must execute such supplement or amendment,
and the Rights Agent acknowledges and agrees that time is of the essence in
executing such supplement or amendment. Notwithstanding the foregoing, the
Rights Agent will not be required to execute any such supplement or amendment
that adversely affects its rights, duties, or obligations pursuant to this
Agreement. Prior to the Distribution Date, the interests of the holders of
Rights and Rights Certificates will be deemed to be coincident with the
interests of the holders of Common Shares. 

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

Section 29. Determinations and Actions by the Board. The
Board (or an authorized committee thereof) has the exclusive power and authority
to administer this Agreement and to exercise all rights and powers specifically
granted to the Board or the Company pursuant hereto, or as may be necessary or advisable in the administration of
this Agreement, including the right and power to (a) interpret the provisions of
this Agreement and (b) make all determinations deemed necessary or advisable for
the administration of this Agreement (including a determination as to whether to
redeem the Rights or to amend this Agreement). All such actions, calculations,
interpretations and determinations (including, for purposes of clause (ii)
below, all omissions with respect to the foregoing) that are done or made by the
Board (or an authorized committee thereof) in good faith will (i) be final,
conclusive and binding on the Company, the Rights Agent, the holders of Rights
Certificates and all other Persons and (ii) not subject the Board (or an
authorized committee thereof) or any of the directors serving on the Board to
any liability to any Person, including the Rights Agent and the holders of
Rights Certificates. In administering this Agreement and exercising the rights
and powers specifically granted to the Board and to the Company hereunder, and
in interpreting this Agreement and making any determination hereunder, the Board
(or an authorized committee thereof) may consider any and all facts,
circumstances or information that it deems to be necessary, useful or
appropriate. The Rights Agent is always entitled to assume that the Board acted
in good faith and will be fully protected and incur no liability in reliance
thereon. 

 -43- 

Section 30. Benefits of this Agreement. Nothing in this
Agreement may be construed to give to any Person other than the Company, the
Rights Agent and the registered holders of Rights Certificates (and, prior to
the Distribution Date, the registered holders of Common Shares) any legal or
equitable right, remedy or claim pursuant to this Agreement. This Agreement is
for the sole and exclusive benefit of the Company, the Rights Agent and the
registered holders of Rights Certificates (and, prior to the Distribution Date,
the registered holders of Common Shares). 

Section 31. Severability. If any term, provision,
covenant or restriction of this Agreement is held by a court of competent
jurisdiction or other authority to be invalid, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions of this Agreement
will remain in full force and effect and will in no way be affected, impaired or
invalidated; provided, however, that notwithstanding anything to
the contrary in this Agreement, if any such term, provision, covenant or
restriction is held by such court or authority to be invalid, void or
unenforceable and the Board determines in its good faith judgment that severing
the invalid language from this Agreement would adversely affect the purpose or
effect of this Agreement, then the right of redemption set forth in Section 23
will be reinstated and will not expire until the Close of Business on the 10th
Business Day following the date of such determination by the Board. 

Section 32. Governing Law; Exclusive Jurisdiction. 

(a)            Governing Law. This Agreement and each Right and
Rights Certificate issued hereunder will be deemed to be a contract made
pursuant to the laws of the State of Delaware and for all purposes will be
governed by and construed in accordance with the laws of the State of Delaware
applicable to contracts made and to be performed entirely within such State;
provided, however, that all provisions regarding the rights,
duties and obligations of the Rights Agent will be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made
and to be performed entirely within such State. 

(b)            Exclusive Jurisdiction. 

-44- 

(i)            The Company and the registered holders of Rights
Certificates (and, prior to the Distribution Date, the registered holders of
Common Shares) each hereby irrevocably submits to the exclusive jurisdiction of
the Court of Chancery of the State of Delaware, or, if such court lacks subject
matter jurisdiction, the United States District Court for the District of
Delaware, over any suit, action or proceeding arising out of or relating to or
concerning this Agreement. The Company and the registered holders of Rights
Certificates (and, prior to the Distribution Date, the registered holders of
Common Shares) each acknowledge that the forum designated by this Section
32(b)(i) has a reasonable relation to this Agreement and to such Persons’
relationship with one another. 

(ii)            The Company and the registered holders of Rights
Certificates (and, prior to the Distribution Date, the registered holders of
Common Shares) each hereby waive, to the fullest extent permitted by applicable
law, any objection that they now or hereafter have to personal jurisdiction or
to the laying of venue of any such suit, action or proceeding brought in any
court referred to in Section 32(b)(i) (or the appellate courts thereof). The
Company and the registered holders of Rights Certificates (and, prior to the
Distribution Date, the registered holders of Common Shares) each undertake not
to commence any action subject to this Agreement in any forum other than the
forum described in Section 32(b)(i). The Company and the registered holders of
Rights Certificates (and, prior to the Distribution Date, the registered holders
of Common Shares) each hereby agree that, to the fullest extent permitted by
applicable law, a final and non-appealable judgment in any such suit, action or
proceeding brought in any such court will be conclusive and binding upon such
Persons. 

Section 33. Counterparts. This Agreement and any
supplements or amendments hereto may be executed in any number of counterparts
and each of such counterparts will for all purposes be deemed to be an original,
and all such counterparts will together constitute one and the same instrument,
it being understood that all parties need not sign the same counterpart. A
signature to this Agreement transmitted electronically (including by fax and
..pdf) will have the same authority, effect and enforceability as an original
signature. No party hereto may raise the use of such electronic transmission to
deliver a signature, or the fact that any signature or agreement or instrument
was transmitted or communicated through such electronic transmission, as a
defense to the formation of a contract, and each party forever waives any such
defense, except to the extent such defense relates to lack of authenticity. 

Section 34. Descriptive Headings; Interpretation.

(a)            Descriptive Headings. The table of contents and
descriptive headings of the several Sections of this Agreement are inserted for
convenience only and will not control or affect the meaning or construction of
any of the provisions hereof. 

(b)            Interpretation. 

(i)            Unless otherwise indicated, all references herein to
Sections or Exhibits will be deemed to refer to Sections or Exhibits of or to
this Agreement, as applicable. Any capitalized terms used in any Exhibit but not
otherwise defined therein have the meaning set forth in this Agreement. All
Exhibits attached hereto or referred to herein are hereby incorporated in and
made a part of this Agreement as if fully set forth herein. 

-45- 

(ii)            Unless otherwise indicated, the words “include,”
“includes” and “including,” when used herein, are deemed in each case to be
followed by the words “without limitation.” 

(iii)           The words “hereof,” “herein, “herewith” and words of
similar import will, unless otherwise stated, be constructed to refer to this
Agreement as whole and not to any particular provision of this Agreement. 

(iv)           The word “or” is used in the inclusive sense of “and/or.”
The terms “or,” “any” and “either” are not exclusive. 

(v)            Whenever the context may require, any pronouns used in this
Agreement include the corresponding masculine, feminine or neuter forms, and the
singular form of nouns and pronouns include the plural and vice versa. 

(vi)           Where a word or phrase is defined, each of its other
grammatical forms has a corresponding meaning. 

(vii)           References to “$” are to the lawful currency of the
United States of America. 

Section 35. Costs of Enforcement. The Company agrees
with each registered holder of Rights Certificates (and, prior to the
Distribution Date, the registered holders of Common Shares) that if the Company
or any other Person the securities of which are purchasable upon exercise of the
Rights fails to fulfill any of its obligations pursuant to this Agreement, then
the Company or such Person must reimburse any registered holder of Rights
Certificates for the costs and expenses (including legal fees) incurred by such
holder in any action to enforce such holder’s rights pursuant to any Right or
this Agreement. 

Section 36. Force Majeure. Notwithstanding anything to
the contrary in this Agreement, the Rights Agent will not be liable for any
delays or failures in performance resulting from acts beyond its reasonable
control, including acts of God, terrorist acts, shortage of supply, breakdowns
or malfunctions, interruptions or malfunction of computer facilities, or loss of
data due to power failures or mechanical difficulties with information storage
or retrieval systems, labor difficulties, war or civil unrest. 

Section 37. USA PATRIOT Act. The Company
acknowledges that the Rights Agent is subject to the customer identification
program requirements pursuant to 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 has received
information from the Company that will help the Rights Agent to identify the
Company, including the Company’s physical address, tax identification number,
organizational documents, certificate of good standing, license to do business
or such other information that the Rights Agent deems necessary and, pending
verification of such received information, the Rights Agent may request
additional such information. The Company agrees to provide all reasonably
requested information necessary for the Rights Agent to verify the Company’s
identity in accordance with such customer identification program requirements.

-46- 

[Signature page follows.] 

 

-47- 

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

	 	CHINA BIOLOGIC PRODUCTS, INC. 
	 	  
	 	  
	 	By: /s/ David (Xiaoying) Gao                 
    
	 	         Name: David (Xiaoying)
    Gao
	 	         Title: Chief
    Executive Officer
	 	  
	 	  
	 	  
	 	SECURITIES TRANSFER CORPORATION
	 	  
	 	  
	 	By: /s/ Kevin Halter, Jr.                                
      
	 	         Name: Kevin
    Halter, Jr.  
	 	         Title: 
    President

[Signature Page to Rights Agreement] 

EXHIBIT A 

FORM OF 
CERTIFICATE OF DESIGNATION OF RIGHTS,
PREFERENCES AND PRIVILEGES 
OF SERIES A PARTICIPATING PREFERRED STOCK
OF 
CHINA BIOLOGIC PRODUCTS, INC.

_______________________________________________

Pursuant to Section 151 of the 
General Corporation Law of
the State of Delaware

_______________________________________________

The undersigned, [name], does hereby certify that: 

1.            [He/she] is the duly elected and acting [title] of China
Biologic Products, Inc., a Delaware corporation (the “Corporation”). 

2.            Pursuant to the authority conferred upon the Board of
Directors of the Company (the “Board”) by the Amended and Restated
Certificate of Incorporation, as amended, of the Corporation, on November 19,
2012, the Board adopted the following resolutions creating a series of preferred
stock, par value $0.0001 per share (“Preferred Stock”), of the
Corporation designated as Series A Participating Preferred Stock: 

RESOLVED: That pursuant to the authority vested in the
Board by the Amended and Restated Certificate of Incorporation, as amended, of
the Corporation (the “Charter”), the Board does hereby provide for the
issuance of a series of Preferred Stock of the Corporation and does hereby fix
and herein state and express the designations, powers, preferences and relative
and other special rights, and the qualifications, limitations and restrictions,
of such series of Preferred Stock as follows: 

Section 1. Designation and Amount. The shares of such
series shall be designated as “Series A Participating Preferred Stock.”
The Series A Participating Preferred Stock shall have a par value of $0.0001 per
share, and the number of shares constituting such series shall be 1,000,000.
Such number of shares may be increased or decreased by resolution of the Board;
provided, however, that no decrease shall reduce the number of
shares of Series A Participating 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 exercise of any options, rights or warrants issuable upon conversion of any
outstanding securities issued by the Corporation convertible into Series A
Participating Preferred Stock. 

Section 2. Proportional Adjustment. In the event that
the Corporation shall at any time after the issuance of any share or shares of
Series A Participating Preferred Stock (the “Rights Declaration Date”)
(a) declare any dividend on the common stock of the Corporation, par value
$0.0001 per share (the “Common Stock”), payable in shares of Common
Stock, (b) subdivide the outstanding Common Stock or (c) combine the outstanding
Common Stock into a smaller number of shares, then in each such case the
Corporation shall simultaneously effect a proportional adjustment to the number
of outstanding shares of Series A Participating Preferred Stock by an amount the
numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

A-1 

Section 3. Dividends and Distributions. 

(a)            Subject to Section 2 and to the prior and superior rights
of the holders of any shares of any series of Preferred Stock ranking prior and
superior to the shares of Series A Participating Preferred Stock with respect to
dividends, the holders of shares of Series A Participating Preferred Stock shall
be entitled to receive, when, as and if declared by the Board out of funds
legally available for the purpose, quarterly dividends payable in cash on the
last day of March, June, September and December in each year (each such date
being referred to herein as a “Quarterly Dividend Payment Date”),
commencing on the first Quarterly Dividend Payment Date after the first issuance
of a share or fraction of a share of Series A Participating Preferred Stock, in
an amount per share (rounded to the nearest cent) equal to the greater of (i)
$1.00 and (ii) subject to Section 2, 1,000 times the aggregate per share amount
of all cash dividends, and 1,000 times the aggregate per share amount (payable
in kind) of all non-cash dividends or other distributions other than a dividend
payable in shares of Common Stock or a subdivision of the outstanding shares of
Common Stock (by reclassification or otherwise), declared on the Common Stock
since the immediately preceding Quarterly Dividend Payment Date, or, with
respect to the first Quarterly Dividend Payment Date, since the first issuance
of any share or fraction of a share of Series A Participating Preferred Stock.

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

(c)            Dividends shall begin to accrue and be cumulative on
outstanding shares of Series A Participating Preferred Stock from the Quarterly
Dividend Payment Date next preceding the date of issue of such shares of Series
A Participating Preferred Stock, unless the date of issue of such shares is
prior to the record date for the first Quarterly Dividend Payment Date, in which
case dividends on such shares shall begin to accrue from the date of issue of
such shares, or unless the date of issue is a Quarterly Dividend Payment Date or
is a date after the record date for the determination of holders of shares of
Series A Participating Preferred Stock entitled to receive a quarterly dividend
and before such Quarterly Dividend Payment Date, in either of which events such
dividends shall begin to accrue and be cumulative from such Quarterly Dividend
Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends
paid on the shares of Series A Participating Preferred Stock in an amount less
than the total amount of such dividends at the time accrued and payable on such
shares shall be allocated pro rata on a share-by-share basis among all such
shares at the time outstanding. The Board may fix a record date for the
determination of holders of shares of Series A Participating Preferred Stock
entitled to receive payment of a dividend or distribution declared thereon,
which record date shall be no more than 60 days prior to the date fixed for the
payment thereof. 

A-2 

Section 4. Voting Rights. The holders of shares of
Series A Participating Preferred Stock shall have the following voting rights:

(a)            Subject to the provision for adjustment hereinafter set
forth, each share of Series A Participating Preferred Stock shall entitle the
holder thereof to 1,000 votes on all matters submitted to a vote of the
stockholders of the Corporation. In the event that the Corporation shall at any
time after the Rights Declaration Date (i) declare any dividend on Common Stock
payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock
or (iii) combine the outstanding Common Stock into a smaller number of shares,
then in each such case the number of votes per share to which holders of shares
of Series A Participating Preferred Stock were entitled immediately prior to
such event shall be adjusted by multiplying such number by a fraction the
numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

(b)            Except as otherwise provided herein, in any other
Certificate of Designation creating a series of Preferred Stock or any similar
stock, the Charter or the Second Amended and Restated Bylaws of the Corporation
(the “Bylaws”), or by law, the holders of shares of Series A
Participating Preferred Stock and the holders of shares of Common Stock shall
vote together as one class on all matters submitted to a vote of stockholders of
the Corporation. 

(c)            Except as set forth herein or as required by law, the
holders of Series A Participating Preferred Stock shall have no special voting
rights and their consent shall not be required (except to the extent that they
are entitled to vote with holders of Common Stock as set forth herein) for
taking any corporate action. 

(d)            (i)            If at any time dividends on any Series A Participating
Preferred Stock shall be in arrears in an amount equal to six quarterly
dividends thereon, then the occurrence of such contingency shall mark the
beginning of a period (herein called a “default period”) that shall
extend until such time as all accrued and unpaid dividends for all previous
quarterly dividend periods and for the current quarterly dividend period on all
shares of Series A Participating Preferred Stock then outstanding shall have
been declared and paid or set apart for payment. During each default period, all
holders of Preferred Stock (including holders of Series A Participating
Preferred Stock) with dividends in arrears in an amount equal to six quarterly
dividends thereon, voting as a class, irrespective of series, shall have the
right to elect two directors. 

(ii)            During any default period, such voting right of the
holders of Series A Participating Preferred Stock may be exercised initially at
a special meeting called pursuant to subparagraph (iii) of this Section 4(d) or
at any annual meeting of stockholders, and thereafter at annual meetings of
stockholders; provided, however, that such voting shall not be
exercised unless the holders of at least one-third in number of shares of
Preferred Stock outstanding shall be present in person or by proxy. The absence
of a quorum of the holders of Common Stock shall not affect the exercise by the
holders of Preferred Stock of such voting right. At any meeting at which the
holders of Preferred Stock shall exercise such voting right initially during an
existing default period, they shall have the right, voting as a class, to elect
directors to fill such vacancies, if any, in the Board as may then exist up to
two directors or, if such right is exercised at an annual meeting of
stockholders, to elect two directors. After the holders of Preferred Stock shall have exercised their right to
elect directors in any default period and during the continuance of such period,
the number of directors shall not be increased or decreased except by vote of
the holders of Preferred Stock as herein provided or pursuant to the rights of
any equity securities ranking senior to or pari passu with the Series A
Participating Preferred Stock. 

A-3 

(iii)           Unless the holders of Preferred Stock shall, during an
existing default period, have previously exercised their right to elect
directors, the Corporation shall, by action of the Chairman of the Board, the
Chief Executive Officer or the majority of the directors in accordance with the
Bylaws, promptly call a special meeting of the holders of Preferred Stock for
such purpose. Notice of such meeting and of any annual meeting at which holders
of Preferred Stock are entitled to vote pursuant to this paragraph (d)(iii)
shall be given to each holder of record of Preferred Stock by mailing a copy of
such notice to such holder at such holder’s last address as the same appears on
the books of the Corporation. Notwithstanding the provisions of this paragraph
(d)(iii), no such special meeting shall be called during the period within 60
days immediately preceding the date fixed for the next annual meeting of the
stockholders. 

(iv)           In any default period, the holders of Common Stock and
other classes of stock of the Corporation, if applicable, shall continue to be
entitled to elect the whole number of directors until the holders of Preferred
Stock shall have exercised their right to elect two directors voting as a class,
after the exercise of which right (A) the directors so elected by the holders of
Preferred Stock shall continue in office until their successors shall have been
elected by such holders or until the expiration of the default period, and (B)
any vacancy in the Board may (except as provided in subparagraph (ii) of this
Section 4(d)) be filled by vote of a majority of the remaining directors
theretofore elected by the holders of the class of stock that elected the
director whose office shall have become vacant. References in this Section 4(d)
to directors elected by the holders of a particular class of stock shall include
directors elected by such directors to fill vacancies as provided in clause (B)
of the foregoing sentence.

(v)            Immediately upon the expiration of a default period, (A)
the right of the holders of Preferred Stock as a class to elect directors shall
cease, (B) the term of any directors elected by the holders of Preferred Stock
as a class shall terminate and (C) the number of directors shall be such number
as may be provided for in the Charter or the Bylaws irrespective of any increase
made pursuant to the provisions of subparagraph (ii) of this Section 4(d) (such
number being subject, however, to change thereafter in any manner provided by
law or in the Charter or Bylaws). Any vacancies in the Board effected by the
provisions of clauses (B) and (C) in the preceding sentence may be filled by a
majority of the remaining directors. 

Section 5. Certain Restrictions. 

(a)            The Corporation shall not declare any dividend on, make any
distribution on, or redeem or purchase or otherwise acquire for consideration
any shares of Common Stock after the first issuance of a share or fraction of a
share of Series A Participating Preferred Stock unless concurrently therewith it
shall declare a dividend on the Series A Participating Preferred Stock as
required by Section 3 hereof. 

A-4 

(b)            Whenever quarterly dividends or other dividends or
distributions payable on the Series A Participating Preferred Stock as provided
in Section 3 hereof are in arrears, thereafter and until all accrued and unpaid
dividends and distributions, whether or not declared, on shares of Series A
Participating Preferred Stock outstanding shall have been paid in full, the
Corporation shall not: 

(i)            declare or pay dividends on, make any other distributions
on, or redeem or purchase or otherwise acquire for consideration any shares of
stock ranking junior (either as to dividends or upon liquidation, dissolution or
winding up) to the Series A Participating 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 A Participating
Preferred Stock, except dividends paid ratably on the Series A Participating
Preferred Stock and all such parity stock on which dividends are payable or in
arrears in proportion to the total amounts to which the holders of all such
shares are then entitled; 

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

(iv)           redeem or purchase or otherwise acquire for consideration
any shares of Series A Participating Preferred Stock, or any shares of stock
ranking on a parity with the Series A Participating Preferred Stock, except in
accordance with a purchase offer made in writing or by publication (as
determined by the Board) to all holders of such shares upon such terms as the
Board, 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. 

(c)            The Corporation shall not permit any subsidiary of the
Corporation to purchase or otherwise acquire for consideration any shares of
stock of the Corporation unless the Corporation could, pursuant to paragraph (a)
of this Section 5, purchase or otherwise acquire such shares at such time and in
such manner. 

Section 6. Reacquired Shares. Any shares of Series A
Participating Preferred Stock purchased or otherwise acquired by the Corporation
in any manner whatsoever shall be retired and cancelled promptly after the
acquisition thereof. All such shares shall upon their cancellation become
authorized but unissued shares of Preferred Stock and may be reissued as part of
a new series of Preferred Stock to be created by resolution or resolutions of
the Board, subject to the conditions and restrictions on issuance set forth
herein, in the Charter or in any other Certificate of Designation creating a
series of Preferred Stock or any similar stock or as otherwise required by law.

A-5 

Section 7. Liquidation, Dissolution or Winding Up. 

(a)            Upon any liquidation (voluntary or otherwise), dissolution
or winding up of the Corporation, no distribution shall be made to the holders
of shares of stock ranking junior (either as to dividends or upon liquidation,
dissolution or winding up) to the Series A Participating Preferred Stock unless,
prior thereto, the holders of shares of Series A Participating Preferred Stock
shall have received an amount equal to $1,000 per share of Series A
Participating Preferred Stock, plus an amount equal to accrued and unpaid
dividends and distributions thereon, whether or not declared, to the date of
such payment (the “Series A Liquidation Preference”). Following the
payment of the full amount of the Series A Liquidation Preference, no additional
distributions shall be made to the holders of shares of Series A Participating
Preferred Stock unless, prior thereto, the holders of shares of Common Stock
shall have received an amount per share (the “Common Adjustment”) equal
to the quotient obtained by dividing (i) the Series A Liquidation Preference by
(ii) 1,000 (as appropriately adjusted to reflect events as stock splits, stock
dividends and recapitalizations with respect to the Common Stock) (such number
in clause (ii), the “Adjustment Number”). Following the payment of the
full amount of the Series A Liquidation Preference and the Common Adjustment in
respect of all outstanding shares of Series A Participating Preferred Stock and
Common Stock, respectively, holders of Series A Participating Preferred Stock
and holders of shares of Common Stock shall receive their ratable and
proportionate share of the remaining assets to be distributed in the ratio of
the Adjustment Number to one with respect to such Preferred Stock and Common
Stock, on a per share basis, respectively. 

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

(c)            In the event that the Corporation shall at any time after
the Rights Declaration Date (i) declare any dividend on the Common Stock payable
in shares of Common Stock, (ii) subdivide the outstanding Common Stock or (iii)
combine the outstanding Common Stock into a smaller number of shares, then in
each such case the Corporation shall simultaneously effect a proportional
adjustment to the Adjustment Number in effect immediately prior to such event by
an amount 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. Consolidation, Merger, etc. In the event that
the Corporation shall enter into any consolidation, merger, combination,
conversion, share exchange or other transaction in which the shares of Common
Stock are exchanged for or changed into other stock, securities, cash and/or any
other property (payable in kind), then in any such case the shares of Series A
Participating Preferred Stock shall at the same time be similarly exchanged or
changed in an amount per share (subject to Section 2) equal to 1,000 times the
aggregate amount of stock, securities, cash and/or any other property (payable
in kind), as the case may be, into which or for which each share of Common Stock
is changed or exchanged. 

A-6 

Section 9. No Redemption. The shares of Series A
Participating Preferred Stock shall not be redeemable. 

Section 10. Ranking. The Series A Participating
Preferred Stock shall rank junior to all other series of the Preferred Stock as
to the payment of dividends and the distribution of assets, unless the terms of
any such series shall provide otherwise. 

Section 11. Amendment. At any time when any shares of
Series A Participating Preferred Stock are outstanding, neither the Charter nor
this Certificate of Designation shall be amended in any manner that would
materially alter or change the powers, preferences or special rights of the
Series A Participating 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 A Participating Preferred Stock, voting separately as a class.

Section 12. Fractional Shares. Series A Participating
Preferred Stock may be issued in fractions of a share that shall entitle the
holder, in proportion to such holder’s fractional shares, to exercise voting
rights, receive dividends, participate in distributions and to have the benefit
of all other rights of holders of Series A Participating Preferred Stock. 

I further declare under penalty of perjury that the matters set
forth in the foregoing Certificate of Designation are true and correct to my own
knowledge. 

Executed at [location] on [date]. 

	 	By:
      _____________________________
	 	       Name:
    
	 	       Title:

A-7 

EXHIBIT B 

FORM OF 
RIGHTS CERTIFICATE 

	Certificate No. R-[●] 	[●] Rights 

NOT EXERCISABLE AFTER
NOVEMBER 20, 2014
OR SUCH EARLIER DATE AS THE RIGHTS ARE REDEEMED, EXCHANGED OR TERMINATED. THE
RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY (AS DEFINED
BELOW), AT $0.001 PER RIGHT, AND EXCHANGE, IN EACH CASE PURSUANT TO THE TERMS
SET FORTH IN THE RIGHTS AGREEMENT (AS DEFINED BELOW). UNDER CERTAIN
CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE
OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS
AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID.
[THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY
OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR
ASSOCIATE OF AN ACQUIRING PERSON. ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE
RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES
SPECIFIED IN SECTION 7(e) OF THE RIGHTS AGREEMENT.]1 

RIGHTS CERTIFICATE 

CHINA BIOLOGIC PRODUCTS, INC. 

This certifies that ______________________________, or
registered assigns, is the registered owner of the number of Rights set forth
above, each of which entitles the owner thereof, subject to the terms,
provisions and conditions of the Rights Agreement, dated as of November 20, 2012
(the “Rights Agreement”), between China Biologic Products, Inc., a
Delaware corporation (the “Company”), and Securities Transfer
Corporation, a Texas corporation (the “Rights
Agent,” which term shall include any successor Rights Agent pursuant to the
Rights Agreement), to purchase from the Company at any time after the
Distribution Date (as such term is defined in the Rights Agreement) and prior to
the Expiration Date (as such term is defined in the Rights Agreement) at the
office of the Rights Agent designated for such purpose, or at the office of its
successor as Rights Agent, one one-thousandth of a fully paid and nonassessable
share of Series A Participating Preferred Stock, par value $0.0001 per share
(the “Preferred Shares”), of the Company, at an exercise price of $60.00
per one one-thousandth of a Preferred Share (the “Exercise Price”), upon
presentation and surrender of this Rights Certificate with the Form of Election
to Purchase and related Certificate duly executed. The number of Rights
evidenced by this Rights Certificate (and the number of one one-thousandths of a
Preferred Share that may be purchased upon exercise hereof) set forth above, and
the Exercise Price per share set forth above, are the number and Exercise Price
as of November 19, 2012 based on the Preferred Shares as constituted at such date. As provided in the Rights Agreement,
the Exercise Price and the number and kind of Preferred Shares or other
securities that may be purchased upon the exercise of the Rights evidenced by
this Rights Certificate are subject to modification and adjustment upon the
occurrence of certain events. The Company reserves the right to require prior to
the occurrence of a Triggering Event (as such term is defined in the Rights
Agreement) that a number of Rights be exercised so that only whole Preferred
Shares will be issued. Capitalized terms used in this Rights Certificate without
definition shall have the meanings ascribed to them in the Rights Agreement. 

______________________
1 The
portion of the legend in brackets is to be inserted only if applicable and will
replace the preceding sentence. 

B-1 

Upon the occurrence of a Section 11(a)(ii) Event, if the Rights
evidenced by this Rights Certificate are beneficially owned by an Acquiring
Person, an Affiliate or Associate of an Acquiring Person, a Post-Event
Transferee, a Pre-Event Transferee, a Subsequent Transferee or any nominee of
any of the foregoing, such Rights shall become null and void and no holder
hereof shall have any right with respect to such Rights from and after the
occurrence of such Section 11(a)(ii) Event. 

This Rights Certificate is subject to all of the terms,
provisions and conditions of the Rights Agreement, which terms, provisions and
conditions are hereby incorporated herein by reference and made a part hereof
and to which Rights Agreement reference is hereby made for a full description of
the rights, limitations of rights, obligations, duties and immunities hereunder
of the Rights Agent, the Company and the holders of the Rights Certificates,
which limitations of rights include the temporary suspension of the
exercisability of such Rights under the specific circumstances set forth in the
Rights Agreement. Copies of the Rights Agreement are on file at the principal
executive offices of the Company and the above-mentioned office of the Rights
Agent and are available without cost upon written request. 

Subject to the provisions of the Rights Agreement, the Rights
evidenced by this Rights Certificate may be redeemed by the Company, at its
option, at a redemption price of $0.001 per Right at any time prior to the
earlier of (i) the Distribution Date or (ii) the Close of Business on the Final
Expiration Date. In addition, under certain circumstances after any Person
becomes an Acquiring Person, the Rights may be exchanged, in whole or in part,
for Common Shares, or cash other securities of the Company having essentially
the same value or economic rights as such shares. Immediately upon the action of
the Board authorizing any such exchange, and without any further action or any
notice, the Rights (other than Rights that are not subject to such exchange)
will terminate and the Rights will only enable holders to receive the Common
Shares (or cash or other securities or assets of the Company) issuable upon such
exchange. 

This Rights Certificate, with or without other Rights
Certificates, upon surrender at the office of the Rights Agent designated for
such purpose, may be exchanged for another Rights Certificate or Rights
Certificates of like tenor and date evidencing Rights entitling the holder to
purchase a like number of one one-thousandths of a Preferred Share as the Rights
evidenced by the Rights Certificate or Rights Certificates surrendered shall
have entitled such holder to purchase. If this Rights Certificate is exercised
in part, then the holder will be entitled to receive upon surrender hereof
another Rights Certificate or Rights Certificates for the number of whole Rights
not exercised. 

No fractions of Preferred Shares (other than fractions that are
integral multiples of one one-thousandth of a Preferred Share, which may, at the
election of the Company, be evidenced by depositary receipts) will be issued upon the exercise of any
Right or Rights evidenced hereby. In lieu thereof, a cash payment will be made
as provided in the Rights Agreement. The Company, at its election, may require
that a number of Rights be exercised so that only whole Preferred Shares would
be issued. 

B-2 

No holder of this Rights Certificate, as such, shall be
entitled to vote or receive dividends or be deemed for any purpose the holder of
the number of one one-thousandths of a Preferred Share or any other securities
of the Company that may at any time be issuable on the exercise or exchange
hereof, nor shall anything contained in herein or in the Rights Agreement 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 specifically provided in the
Rights Agreement), or to receive dividends or subscription rights, or otherwise,
until the Right or Rights evidenced by this Rights Certificate shall have been
exercised or exchange in accordance with the Rights Agreement. 

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

B-3 

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

Dated as of _______________, 201[●]. 

	ATTEST: 	CHINA BIOLOGIC PRODUCTS, INC. 
	  	  
	  	  
	By:
    _____________________________________	By:
      _____________________________________
	       Name: 	       Name:
    
	       Title: 	       Title:

Countersigned: 

SECURITIES TRANSFER CORPORATION, as Rights Agent

By:
_____________________________________
       Name: 
       Title:

B-4 

[Form of Reverse Side of Rights Certificate] 

FORM OF ASSIGNMENT 

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

FOR VALUE RECEIVED _____________________hereby sells, assigns and
transfers unto 

	 
	
    (Please
print name and address of transferee) 

	  

this Rights Certificate, together with all right, title and
interest therein, and does hereby irrevocably constitute and appoint
__________________________as attorney-in-fact to transfer the within Rights
Certificate on the books of China Biologic Products, Inc., with full power of
substitution. 

Dated: ____________________

	 	_____________________________________
	 	Signature 

Signature Medallion Guaranteed: 

Signatures must be guaranteed by an “Eligible Guarantor
Institution” (with membership in an approved signature guarantee medallion
program at a level acceptable to the Rights Agent) pursuant to Rule 17Ad-15 of
the Securities Exchange Act of 1934, as amended. All guarantees must be by a
financial institution (such as a bank or broker) that is a participant in the
Securities Transfer Agents Medallion Program (STAMP), the NASDAQ Medallion
Signature Program (MSP) or the Stock Exchanges Medallion Program (SEMP) and must
not be dated. Guarantees by a notary public are not acceptable. 

B-5 

CERTIFICATE 

The undersigned hereby certifies, for the benefit of the
Company and all holders of Rights and Common Shares, by checking the appropriate
boxes that: 

	 	(1) 	the Right(s) evidenced by this Rights
      Certificate are not Beneficially Owned and 
	 	 	  
	 	  	[  ] are 
	 	 	  
	 	  	[  ] are not 
	 	 	  
			
      being sold, assigned and transferred by or on behalf of a
      Person who is or was an Acquiring Person, an Affiliate or Associate of an
      Acquiring Person, a Post-Event Transferee, a Pre-Event Transferee, a
      Subsequent Transferee or any nominee of any of the foregoing; and
  

	 	 	 
	 	(2) 	after due inquiry and to the best knowledge of
      the undersigned, it 
	 	 	  
	 	  	[  ] did 
	 	 	  
	 	  	[  ] did not 
	 	 	  
			
      acquire the Rights evidenced by this Rights Certificate
      from any Person who is, was or subsequently became an Acquiring Person, an
      Affiliate or Associate of an Acquiring Person, a Post-Event Transferee, a
      Pre-Event Transferee, a Subsequent Transferee or any nominee of any of the
      foregoing. 

Dated: ____________________

	 	_____________________________________
	 	Signature 

Signature Medallion Guaranteed: 

Signatures must be guaranteed by an “Eligible Guarantor
Institution” (with membership in an approved signature guarantee medallion
program at a level acceptable to the Rights Agent) pursuant to Rule 17Ad-15 of
the Securities Exchange Act of 1934, as amended. All guarantees must be by a
financial institution (such as a bank or broker) that is a participant in the
Securities Transfer Agents Medallion Program (STAMP), the NASDAQ Medallion
Signature Program (MSP) or the Stock Exchanges Medallion Program (SEMP) and must
not be dated. Guarantees by a notary public are not acceptable. 

B-6 

[Form of Reverse Side of Rights Certificate – continued]

FORM OF ELECTION TO PURCHASE 

(To be executed if holder desires to 
exercise Rights
represented by the Rights Certificate.) 

To: China Biologic Products, Inc. 

The undersigned hereby irrevocably elects to exercise
_________________________Rights represented by this Rights Certificate to
purchase the number of one one-thousandths of a Preferred Share (or such other
securities of the Company or of any other Person that may be issuable upon the
exercise of the Rights) issuable upon the exercise of such Rights and requests
that certificates for such shares be issued in the name of and delivered to:

Please insert social security or other identifying number 

	 
	(Please print name and address) 
	 

If such number of Rights shall not be all of the Rights
evidenced by this Rights Certificate, a new Rights 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 

Signature Medallion Guaranteed: 

Signatures must be guaranteed by an “Eligible Guarantor
Institution” (with membership in an approved signature guarantee medallion
program at a level acceptable to the Rights Agent) pursuant to Rule 17Ad-15 of
the Securities Exchange Act of 1934, as amended. All guarantees must be by a
financial institution (such as a bank or broker) that is a participant in the
Securities Transfer Agents Medallion Program (STAMP), the NASDAQ Medallion
Signature Program (MSP) or the Stock Exchanges Medallion Program (SEMP) and must
not be dated. Guarantees by a notary public are not acceptable. 

B-7 

CERTIFICATE 

The undersigned hereby certifies, for the benefit of the
Company and all holders of Rights and Common Shares, by checking the appropriate
boxes that: 

	 	(1) 	
      the Right(s) evidenced by this Rights Certificate are not
      Beneficially Owned and

	 	 	 
	 		
      [  ] are

	 	 	 
	 		
      [  ] are not

	 	 	 
	 		
      being sold, assigned and transferred by or on behalf of a
      Person who is or was an Acquiring Person, an Affiliate or Associate of an
      Acquiring Person, a Post-Event Transferee, a Pre-Event Transferee, a
      Subsequent Transferee or any nominee of any of the foregoing;
and

	 	 	 
	 	(2) 	
      after due inquiry and to the best knowledge of the
      undersigned, it

	 	 	 
	 		
      [  ] did

	 	 	 
	 		
      [  ] did not

	 	 	 
	 		
      acquire the Rights evidenced by this Rights Certificate
      from any Person who is, was or subsequently became an Acquiring Person, an
      Affiliate or Associate of an Acquiring Person, a Post-Event Transferee, a
      Pre-Event Transferee, a Subsequent Transferee or any nominee of any of the
      foregoing.

Dated: ____________________

	 	_____________________________________
	 	Signature 

Signature Medallion Guaranteed: 

Signatures must be guaranteed by an “Eligible Guarantor
Institution” (with membership in an approved signature guarantee medallion
program at a level acceptable to the Rights Agent) pursuant to Rule 17Ad-15 of
the Securities Exchange Act of 1934, as amended. All guarantees must be by a
financial institution (such as a bank or broker) that is a participant in the
Securities Transfer Agents Medallion Program (STAMP), the NASDAQ Medallion
Signature Program (MSP) or the Stock Exchanges Medallion Program (SEMP) and must
not be dated. Guarantees by a notary public are not acceptable. 

B-8 

[Form of Reverse Side of Rights Certificate – continued]

NOTICE 

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

IN THE EVENT THAT THE CERTIFICATIONS SET FORTH IN THE
FOREGOING FORMS OF ASSIGNMENT AND ELECTION TO PURCHASE, AS THE CASE MAY BE, ARE
NOT COMPLETED, THEN THE COMPANY AND THE RIGHTS AGENT WILL DEEM THE BENEFICIAL
OWNER OF THE RIGHTS EVIDENCED BY THIS RIGHT CERTIFICATE TO BE AN ACQUIRING
PERSON, AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON, A POST-EVENT
TRANSFEREE, A PRE-EVENT TRANSFEREE, A SUBSEQUENT TRANSFEREE OR ANY NOMINEE OF
ANY OF THE FOREGOING, AS THE CASE MAY BE, AND SUCH ASSIGNMENT OR ELECTION TO
PURCHASE WILL NOT BE HONORED AND THE RIGHTS EVIDENCED BY THIS RIGHTS CERTIFICATE
WILL BE DEEMED TO BE NULL AND VOID. 

B-9 

EXHIBIT C 

FORM OF SUMMARY OF 
PREFERRED SHARES RIGHTS AGREEMENT

OF 
CHINA BIOLOGIC PRODUCTS, INC. 

On November 19, 2012, the Board of Directors (the
“Board”) of China Biologic Products, Inc. (the “Company”)
authorized and declared a dividend distribution of one right (a “Right”)
for each outstanding share of the common stock, par value $0.0001 per share (the
“Common Shares”), of the Company to stockholders of record at the close
of business on November 30, 2012 (the “Record Date”). Each Right entitles
the registered holder to purchase from the Company one one-thousandth of a share
of Series A Participating Preferred Stock, par value $0.0001 per share (the
“Preferred Shares”), of the Company at an exercise price of $60.00 per
one one-thousandth of a Preferred Share, subject to adjustment (the “Exercise
Price”). The complete terms of the Rights are set forth in a Rights
Agreement (the “Rights Agreement”), dated as of November 20, 2012, between
the Company and Securities Transfer Corporation, as rights agent. 

The Board adopted the Rights Agreement to protect stockholders
from coercive or otherwise unfair takeover tactics. In general terms, it works
by imposing a significant penalty upon any person or group that acquires ten
percent (10%) (the “Triggering Percentage”) or more of the Common Shares
of the Company without the approval of the Board. As a result, the overall
effect of the Rights Agreement and the issuance of the Rights may be to render
more difficult or discourage a merger, tender or exchange offer or other
business combination involving the Company that is not approved by the Board.
However, neither the Rights Agreement nor the Rights should interfere with any
merger, tender or exchange offer or other business combination approved by the
Board. 

For those interested in the specific terms of the Rights
Agreement, the following is a 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 as an exhibit to a Registration Statement on
Form 8-A or a Current Report on Form 8-K to be filed promptly by the Company. A
copy of the Rights Agreement is available free of charge from the Company. 

	
    Distribution and Transfer of Rights; 
	The Board has declared a dividend of
      one Right for each outstanding Common Share. Prior to the Distribution
      Date (as defined below): 
	
    Rights Certificates: 
	  	  
	
    
	●	
      the Rights will be evidenced by and trade with the
      certificates for the Common Shares (or, with respect to any uncertificated
      Common Shares registered in book entry form, by notation in book entry),
      in either case together with a copy of this Summary of Rights, and no
      separate rights certificates will be distributed; 

	
    
	●	
      new Common Shares certificates issued after the Record
      Date will contain a legend incorporating the Rights Agreement by reference
      (for uncertificated Common Shares registered in book entry form, this legend will be contained in a notation in book
      entry); and
  

C-1 

	
    
	
    ●
	
      the surrender for transfer of any certificates for Common
      Shares (or the surrender for transfer of any uncertificated Common Shares
      registered in book entry form) will also constitute the transfer of the
      Rights associated with such Common Shares. 

	
      
	
       
	
       

	
    
	
      Rights will accompany any new Common Shares that are
      issued after the Record Date. 

	
      
	
       
	
       

	
    
	
      After the Distribution Date, the Company will mail Rights
      certificates to the Company’s stockholders as of the close of business on
      the Distribution Date and the Rights will become transferable apart from
      the Common Shares. Thereafter, such Rights certificates alone will
      represent the Rights. 

	
      
	
       
	
       

	
    Distribution Date: 
	
      Subject to certain exceptions specified in the Rights
      Agreement, the Rights will separate from the Common Shares and become
      exercisable following (1) the 10th business day (or such later date as may
      be determined by the Board) after the public announcement that any
      Acquiring Person has acquired beneficial ownership of the Triggering
      Percentage or more of the Common Shares or (2) the 10th business day (or
      such later date as may be determined by the Board) after a person or group
      announces a tender or exchange offer that would result in beneficial
      ownership by a person or group of the Triggering Percentage or more of the
      Common Shares. For purposes of the Rights Agreement, beneficial ownership
      is defined to include the ownership of derivative securities. 

	
      
	
       
	
       

	
    
	
      The date on which the Rights separate from the Common
      Shares and become exercisable is referred to as the “Distribution
      Date.” 

	
      
	
       
	
       

	
    
	
      “Acquiring Person” means a person or group of
      affiliated or associated persons who has acquired beneficial ownership of
      the Triggering Percentage or more of the Common Shares; provided
      however, no person who, at the time of the adoption of the Rights
      Agreement, beneficially owns the Triggering Percentage or more of the
      Common Shares shall be deemed to be an Acquiring Person (i.e. a
      stockholder’s existing ownership of the Common Shares will be
      grandfathered), unless and until such person acquires beneficial ownership
      of additional two percent (2%) or more of the Common Shares without the
      pre-approval of the Board. 

	
      
	
       
	
       

	
    Preferred Shares Purchasable Upon Exercise
      of Rights: 
	
      After the Distribution Date, each Right will entitle the
      holder to purchase, for the Exercise Price, one one-thousandth of a
      Preferred Share having economic and other terms similar to that of one
      Common Share. This portion of a Preferred Share is intended to give the
      stockholder approximately the same dividend, voting and liquidation rights
      as would one Common Share, and should approximate the value of one Common
      Share. 

	
      
	
       
	
       

	
      
	
      More specifically, each one one-thousandth of a Preferred
      Share, if issued, will: 

C-2 

	
      
	●	
      not be redeemable; 

	
    
	●	
      entitle holders to quarterly dividend payments of $0.001
      per share, or an amount equal to the dividend paid on one Common Share,
      whichever is greater; 

	
    
	●	
      entitle holders upon liquidation either to receive $1 per
      share or an amount equal to the payment made on one Common Share,
      whichever is greater; 

	
      
	●	
      have the same voting power as one Common Share;

	
    
	●	
      if the Common Shares are exchanged via merger,
      consolidation or a similar transaction, will entitle holders to a per
      share payment equal to the payment made on one Common Share. 

	
      
	
       
	
       

	
    Flip-In Trigger: 
	
      If an Acquiring Person obtains beneficial ownership of
      the Triggering Percentage or more of the Common Shares, then each
      Right will entitle the holder thereof to purchase, for the Exercise Price,
      a number of Common Shares (or, in certain circumstances, cash, property or
      other securities of the Company) having a then-current market value of
      twice the Exercise Price. However, the Rights are not exercisable
      following the occurrence of the event set forth above until such time as
      the Rights are no longer redeemable by the Company, as further described
      below. 

	
      
	
       
	
       

	
    
	
      Following the occurrence of an event set forth in
      preceding paragraph, all Rights that are or, under certain circumstances
      specified in the Rights Agreement, were beneficially owned by an Acquiring
      Person or certain of its transferees will be null and void. 

	
      
	
       
	
       

	
    Flip-Over Trigger: 
	
      If, after an Acquiring Person obtains the Triggering
      Percentage or more of the Common Shares, (i) the Company merges into
      another entity, (ii) an acquiring entity merges into the Company or (iii)
      the Company sells or transfers more than 50% of its assets, cash flow or
      earning power, then each Right (except for Rights that have
      previously been voided as set forth above) will entitle the holder thereof
      to purchase, for the Exercise Price, a number of shares of common stock of
      the person engaging in the transaction having a then-current market value
      of twice the Exercise Price. 

	
      
	
       
	
       

	
    Redemption of the Rights: 
	
      The Rights will be redeemable at the Company’s option for
      $0.001 per Right (payable in cash, Common Shares or other consideration
      deemed appropriate by the Board) at any time on or prior to the 10th
      business day (or such later date as may be determined by the Board) after
      the public announcement that an Acquiring Person has acquired beneficial
      ownership of the Triggering Percentage or more of the Common Shares.
      Immediately upon the action of the Board ordering redemption, the Rights
      will terminate and the only right of the holders of the Rights will be to
      receive the $0.001 redemption price. The redemption price will be adjusted
      if the Company undertakes a stock dividend or a stock split.
  

C-3 

	
    Exchange Provision: 
	
      At any time after the date on which an Acquiring Person
      beneficially owns the Triggering Percentage or more of the Common Shares,
      the Board may exchange the Rights (except for Rights that have previously
      been voided as set forth above), in whole or in part, for Common Shares at
      an exchange ratio of one Common Share per Right (subject to adjustment).
      In certain circumstances, the Company may elect to exchange the Rights for
      cash or other securities of the Company having a value approximately equal
      to one Common Share. 

	
      
	
      

	
    Expiration of the Rights: 
	
      The Rights expire on the earliest of (i) 5:00 p.m., New
      York City time, on the 2 year anniversary date of the date of the Rights
      Agreement (unless such date is extended) or (ii) the redemption or
      exchange of the Rights as described above. 

	
      
	
      

	
    Amendment of Terms of Rights
      Agreement and Rights: 
	
      The terms of the Rights and the Rights Agreement may be
      amended in any respect without the consent of the holders of the Rights on
      or prior to the Distribution Date. Thereafter, the terms of the Rights and
      the Rights Agreement may be amended without the consent of the holders of
      Rights in order to cure any ambiguities, to make changes that do not
      adversely affect the interests of holders of the Rights or to shorten or
      lengthen any time period pursuant to the Rights Agreement. 

	
    

	 	
        
	
    Voting Rights; Other Stockholder Rights:
    
	
      The Rights will not have any voting rights. Until a Right
      is exercised, the holder thereof, as such, will have no separate rights as
      stockholder of the Company. 

	
      
	
      

	
    Anti-Dilution Provisions: 
	
      The Board may adjust the Exercise Price, 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 or a
      reclassification of the Preferred Shares or Common Shares. 

	
      
	
      

	
    
	
      With certain exceptions, no adjustments to the Exercise
      Price will be made until the cumulative adjustments amount to at least 1%
      of the Exercise Price. No fractional Preferred Shares will be issued and,
      in lieu thereof, an adjustment in cash will be made based on the current
      market price of the Preferred Shares. 

	
      
	
      

	
    Taxes: 
	
      The distribution of Rights should not be taxable for
      federal income tax purposes. However, following an event that renders the
      Rights exercisable or upon redemption of the Rights, stockholders may
      recognize taxable income. 

C-4

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