Document:

bk1

EXHIBIT 4.1 

  

	MCI, INC.
    
	 
	 The Board of Directors
      of MCI, Inc. (the “Company”) has adopted a Rights Agreement by
      and between the Company and The Bank of New York (the “Rights Agent”),
      as it may be amended from time to time (the “Agreement”), the
      terms of which are incorporated herein by reference and a copy of which
      is on file at the principal executive offices of the Company. From and after
      the Record Date, as defined in the Agreement, this certificate will evidence
      and entitle the holder hereof to the same number of Rights (subject to adjustment)
      as the number of shares of Common Stock represented by this certificate,
      such Rights being on the terms provided under the Rights Agreement. Under
      certain circumstances, as set forth in the Agreement, such Rights shall
      be evidenced by separate certificates and shall no longer be evidenced by
      this certificate. The Company shall mail to the registered holder of this
      certificate a copy of the Agreement without charge within five Business
      Days after receipt of a written request therefore. As
      provided in Section 7(e) of the Agreement, Rights issued to or Beneficially
      Owned by Acquiring Persons or their Affiliates or Associates (as such terms
      are defined in the Agreement) or any subsequent holder of such Rights shall
      be null and void and may not be exercised by or transferred to any Person.
      The Rights shall not be exercisable, and shall be void so long as held,
      by holders in any jurisdiction where the requisite qualification to the
      issuance to such holder, or the exercise by such holder, of the Rights in
      such jurisdiction shall not have been obtained or be obtainable.
	 
	     The
      following abbreviations, when used in the inscription on the face of this
      certificate, shall be construed as though they were written out in full
      according to applicable laws or regulations:

	 	TEN
      COM	–	as
      tenants in common	UNIF
      GIFTMIN ACT–	
	Custodian	

	(Cust)	(Minor)
	 	TEN ENT	–	as tenants by
      the entireties	 	under
      Uniform Gifts to Minors	 	 
	 	JT TEN	–	as joint tenants
      with right of	 	Act_____________________	 	 
	 	 	 	survivorship and
      not as tenant sin common	 	(State)	 	 
	 	 	 	 	 	 	 	 
	Additional abbreviations
      may also be used though not in the above list. 

	For Value Received,
    	_________________________________________	   hereby sell, assign
      and transfer unto
	 	 	 

PLEASE INSERT SOCIAL SECURITY OR OTHER

         IDENTIFYING NUMBER OF ASSIGNEE

	 

	 

	(PLEASE PRINT
      OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE) 	 
	 	 
	 

	 	 
	 

	 	 
	
	 Shares
	of the capital stock represented
      by the within Certificate, and do hereby irrevocably constitute and appoint
    	 
	 	 
	
	 Attorney
	to transfer the said stock
      on the books of the within named Corporation with full power of substitution
      in the premises.	 
	 	 
	Dated ___________________________	 

	 	

	NOTICE: THE
      SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME

      AS THE WRITTEN UPON THE FACE OF CERTIFICATE IN EVERY PARTICULAR, 

      WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

 Signature(s) Guaranteed: 

 

THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR 

INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS 

AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE 

GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.  

	 	 
	KEEP THIS CERTIFICATE IN
      A SAFE PLACE. IF IT IS LOST, STOLEN, MUTILATED OR DESTROYED, THE CORPORATION
      WILL REQUIRE A BOND OF 

      INDEMNITY AS A CONDITION TO THE ISSUANCE OF A REPLACEMENT CERTIFICATE.exhibit

  EXHIBIT 4.1

  MCI, INC. 

  

and 

The Bank of New York 

Rights Agent 

RIGHTS AGREEMENT 

Dated as of April 20, 2004

            RIGHTS AGREEMENT,
  dated as of April 20, 2004, between MCI, Inc., a Delaware corporation (the “Company”),
  and The Bank of New York (the “Rights 
  Agent”). 

  W I T N E S S E T H 

            WHEREAS, on
  April 20, 2004, the Board of Directors of the Company (the “Board”)
  authorized the issuance of, and declared, a dividend payable in one right (a “Right”)
  for each share of common stock, $0.01 par value per share (“Common Stock”),
  of the Company outstanding as of the close of business on April 30, 2004 (the “Record Date”),
  each such Right initially representing the right to purchase one share of Common
  Stock, upon the terms and subject to the conditions hereinafter set forth;
  and 

            WHEREAS, on such date, the Board further authorized the issuance of one Right (subject to adjustment) with respect to each share of Common Stock that may be issued between the Record Date and the
earliest to occur of the Distribution Date, the Expiration Date or the Final Expiration Date (as such terms are hereinafter defined); provided, however, that Rights may be issued with respect to shares of Common Stock that shall become outstanding after the Distribution Date and prior to the Expiration Date in accordance with Section 22 hereof.
  

            NOW, THEREFORE, in consideration of the premises and the mutual agreements set forth herein, 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” shall
  mean any Person (as hereinafter defined) who or which, together with all Associates
  and Affiliates (as hereinafter defined) of such Person, shall be the Beneficial
  Owner (as hereinafter defined) of 15% or more of the shares of Common Stock
  of the Company then outstanding; provided, however, that an Acquiring Person shall not include: (i) an Exempt Person; (ii) any Person who or which, together with all Affiliates and Associates of such Person, would be an Acquiring Person solely by reason of (A) being the Beneficial Owner
of shares of Common Stock which was acquired by such Person (together with all Affiliates and Associates of such Person) pursuant to any action or transaction or series of related actions or transactions approved by the Board before such Person
(together with all Affiliates and Associates of such Person) otherwise became an Acquiring Person or (B) a reduction in the number of issued and outstanding shares of Common Stock pursuant to a transaction or a series of related transactions
approved by the Board; provided, further, that in the event a Person described in this clause (ii) does not become an Acquiring
Person by reason of subclause (A) or (B) of this clause (ii), such Person nonetheless shall become an Acquiring Person in the event such Person (together with all Affiliates and Associates of such Person) thereafter acquires Beneficial Ownership of
an additional 1% or more of the Common Stock, unless the acquisition of such additional Common Stock would not result in such Person becoming an Acquiring Person by reason of subclause (A) or (B) of this clause (ii); (iii) any Person who, together
with all Affiliates and Associates of such Person, 

  solely as a result of receiving a distribution of Common Stock under the Plan becomes the Beneficial Owner of 15% or more of the Common Stock outstanding as of the date of such distribution; provided, further, that
  any Person described in this clause (iii) shall become an Acquiring Person
  if (A) such Person, together with all Affiliates and Associates of such Person,
  after having received a distribution of Common Stock under the Plan, acquires
  Beneficial Ownership of an additional 1% or more of the Common Stock or (B)
  such Person, together with all Affiliates and Associates of such Person, after
  having received a distribution of Common Stock under the Plan, reduces its
  Beneficial Ownership of the Common Stock to less than 15% of the outstanding
  Common Stock and thereafter becomes the Beneficial Owner of 15% or more of
  the outstanding Common Stock, unless in the case of subclause (A) or (B) of
  this clause (iii) such acquisition of Common Stock was pursuant to a transaction
  described in subclauses (ii)(A) or (ii)(B) above; or (iv) any Person who or
  which, together with all Affiliates and Associates of such Person, would be
  an Acquiring Person solely by reason of such Person’s acceptance for purchase of and purchase of shares of Common Stock pursuant to a Qualifying Tender Offer. Notwithstanding the foregoing,
if the Board determines in good faith that a Person who would otherwise be an “Acquiring Person” as defined pursuant to the foregoing provisions of this paragraph (a) has become such inadvertently, and such Person divests as promptly as
practicable (as determined by the Board) a sufficient number of shares of Common Stock so that such Person would no longer be an “Acquiring Person” as defined pursuant to the foregoing provisions of this paragraph (a), then such Person
shall not be deemed an “Acquiring Person” for any purposes of this
Agreement. 

            (b) “Act” shall mean the Securities Act
  of 1933, as amended. 

            (c) “Adjustment Shares” shall
  have the meaning set forth in Section 11(a)(ii) hereof. 

            (d) “Affiliate” and “Associate” shall
  have the respective meanings ascribed to such terms in Rule 12b-2 of the General
  Rules and Regulations under the Exchange Act (as hereinafter defined). 

            (e) “Agreement” shall
  mean this Rights Agreement as originally executed or as it may from time to
  time be supplemented, amended, renewed, restated or extended pursuant to the
  applicable provisions hereof. 

            (f) A Person
  shall be deemed the “Beneficial Owner” of, and shall be deemed to “beneficially own,” any
  securities which: 

            (i)  such Person
                or any of such Person’s Associates or Affiliates, directly or indirectly,
                owns or has the right to acquire (whether such right is exercisable immediately
                or only after the passage of time) pursuant to any agreement, arrangement
                or understanding (whether or not in writing) or upon the exercise of conversion
                rights, exchange rights, rights, warrants, options or otherwise; provided, however, that
                a Person shall not be deemed the “Beneficial Owner” of, or to “beneficially
                own,” (A)
                securities tendered pursuant to a tender

    
  

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    or exchange offer made by or on behalf of such
      Person or any of such Person’s Associates or Affiliates until such tendered
      securities are accepted for purchase or exchange, (B) securities issuable upon
      exercise of Rights at any time prior to the occurrence of a Triggering Event
      (as hereinafter defined) or (C) securities issuable upon exercise of Rights
      from and after the occurrence of a Triggering Event which Rights are Original
      Rights (as hereinafter defined) or securities issued pursuant to Section 11(i)
    hereof in connection with an adjustment made with respect to any Original Rights; 
  

  
              (ii)    such
    Person or any of such Person’s Associates or Affiliates, directly or indirectly, has the right to vote or dispose of or has
“beneficial ownership” of (as determined pursuant to Rule 13d-3 of
  the General Rules and Regulations under the Exchange Act), including pursuant
  to any agreement, arrangement or understanding, whether or not in writing; provided, however, that a Person
  shall not be deemed the “Beneficial Owner” of, or to “beneficially own,” any
  security under this subparagraph (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 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
  under the Exchange Act and (B) is not also then reportable as being beneficially
  owned by such Person on Schedule 13D under the Exchange Act (or any comparable
  or successor statement); or 
  

  
              (iii) are
    beneficially owned, directly or indirectly, by any other Person (or any Associate
    or Affiliate thereof) with which such Person (or any of such Person’s Associates or Affiliates) has any agreement, arrangement or understanding (whether or not in writing), for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy as described in clause (A) of the
  proviso to subparagraph (ii) of this paragraph (f)) or disposing of any voting securities of the Company; provided, however, that nothing in this paragraph (f) shall cause a Person engaged in business as an underwriter of securities to be the
“Beneficial Owner” of, or to be deemed to “beneficially own,” any securities acquired, or which that Person has the right to acquire, through such Person’s
  participation in good faith in a firm commitment underwriting until the expiration
  of 40 days after the date of such acquisition. 
  

  
              (iv) Notwithstanding
    anything in this paragraph (f) to the contrary, a Person shall not be deemed
    the “Beneficial Owner” of, or to
“Beneficially Own”, any security beneficially owned by another Person solely by reason of an agreement, arrangement or understanding between such Person and such Beneficial Owner solely for the purposes of, or solely relating to, each such
  Person’s participation (including membership on any committee or in any
  group) in any process established by the Company to solicit from stockholders
  the names of individuals to serve as nominees to fill vacancies on the Board. 
  

  3

            (g) “Board” shall have the meaning set forth in the first “WHEREAS” clause
  at the beginning of this Agreement. 

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

            (i) “Close of Business” on
  any given date shall mean 5:00 P.M., Eastern time, on such date; provided,
  however, that if such date is not a Business Day, it shall mean 5:00 P.M.,
  Eastern time, on the next succeeding Business Day. 

            (j) “Common Stock” when used in reference to the Company shall mean the common stock, par value $0.01 per share, of the Company or any other shares of capital stock of the Company into which
such stock shall be reclassified or changed after the date hereof. “Common Stock” when used with reference to any Person other than the Company organized in corporate form shall mean (i) the capital stock or other equity interest in such
Person with the greatest voting power, (ii) the equity securities or other equity interest having power to control or direct the management of such Person or (iii) if such Person is a Subsidiary (as hereinafter defined) of another Person, the
capital stock, equity securities of, or other equity interest in, the Person or Persons which ultimately control such first-mentioned Person and which has issued any such outstanding capital stock, equity securities or equity interest. “Common
Stock” when used with reference to any Person not organized in corporate
form shall mean units of beneficial interest which (x) represent the right to
participate generally in the profits and losses of such Person (including without
limitation any flow-through tax benefits resulting from an ownership interest
in such Person) and (y) are entitled to exercise the greatest voting power of
such Person or, in the case of a limited partnership, have the power to remove
the general partner or partners. 

            (k) “Common Stock Equivalents” shall
  have the meaning set forth in Section 11(a)(iii) hereof. 

            (l) “Company” shall have the meaning set forth in the first paragraph of this Agreement until a successor corporation or entity shall have become such or until a Principal Party (as
hereinafter defined) shall assume, and thereafter be liable for, all obligations and duties of the Company hereunder pursuant to the applicable provisions of this Agreement, and thereafter, “Company” shall
mean such successor or Principal Party, respectively. 

            (m) “Current Market Price” shall
  have the meaning set forth in Section 11(d) hereof. 

            (n) “Current Value” shall
  have the meaning set forth in Section 11(a)(iii) hereof. 

            (o) “Distribution Date” shall
  have the meaning set forth in Section 3(b) hereof. 

  4

            (p) “Exchange Act” shall
  mean the Securities Exchange Act of 1934, as amended. 

            (q) “Exempt Person” shall
  mean (i) the Company, (ii) any Subsidiary of the Company or (iii) any employee
  benefit plan or employee stock plan of the Company or of any Subsidiary of
  the Company, or any trust or other entity organized, appointed, established
  or holding Common Stock for or pursuant to the terms of any such plans.

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

            (s) “Final Expiration Date” shall
  mean the Close of Business on the date of the 2007 annual meeting of stockholders
  of the Company, unless the continuation of the Rights is not approved by the
  stockholders of the Company by a vote of the majority of the shares present
  and entitled to vote at the 2007 annual meeting duly called and held to consider,
  among other matters, the continuation of the Rights. If the stockholders approve
  the continuation of the Rights, the Final Expiration Date shall be the Close
  of Business on the fifth anniversary of the adoption of this Agreement. 

            (t) “Original Rights” shall mean Rights acquired by a Person or such Person’s
  Associates or Affiliates prior to the Distribution Date or issued pursuant
  to Section 3(a) or Section (22) hereof. 

            (u) “Person” shall
  mean any individual, firm, corporation, partnership, trust or other entity
  and includes without limitation an unincorporated group of persons who, by
  formal or informal agreement or arrangement (whether or not in writing), have
  embarked on a common purpose or act. 

            (v) “Plan” shall mean the Company’s
  Amended and Restated Joint Plan of Reorganization (Case No. 02-13533 (AJG))
  under chapter 11 of title 11 of the United States Code, as confirmed on October
  31, 2003 by order of the United States Bankruptcy Court for the Southern District
  of New York. 

            (w) “Principal Party” shall
  have the meaning set forth in Section 13(b) hereof. 

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

            (y) “Qualifying Tender Offer” shall mean an offer by a Person (other than an Exempt Person) for all outstanding shares of Common Stock of the Company (other than shares of the Common Stock
of the Company held by (i) the offeror and its Affiliates and Associates, (ii) the Company in its treasury and (iii) any of the Company’s
Subsidiaries) which meets all of the following requirements: 

  
              (i) the consideration offered shall be all cash or a combination of cash and securities listed on a national securities exchange or a national automated quotation system, provided that the aggregate
    market value of 
  

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    the class of securities offered that is held by non-affiliates of the offeror is in excess of $5 billion as of the most recently filed periodic report made under the Exchange Act; 
  

  
              (ii) such offer
    shall be in compliance with all applicable laws (the “Applicable Laws”),
    including , without limitation, the Exchange Act, state or foreign laws relating
    to takeovers, state securities or blue sky laws, the Hart-Scott-Rodino Antitrust
    Improvements Act of 1976, as amended, and the Delaware General Corporation
    Law; 
  

  
              (iii) such Person making such offer must beneficially own, immediately after consummating such offer, a majority of the then outstanding shares of Common Stock of the Company on a fully diluted basis
  (or, to the extent that Applicable Law requires any greater vote to effect the transactions pursuant to paragraph (vi) below, such greater amount); 
  

  
              (iv) the consideration
    per share being offered pursuant to such offer shall have: (a) on the date
    of the commencement of the offer a value equal to or greater than the Minimum
    Value (as defined in the next succeeding sentence); or (b) been accepted by
    holders of a majority of the outstanding shares of Common Stock, excluding
    the shares beneficially owned by the Person(s) making such offer and the shares
    beneficially owned by such Person(s)’ Affiliates and Associates. For the
    purposes of sub-clause (a) of this clause (iv), the term Minimum Value shall
    mean at least a 25% premium over the greater of (i) the average of the closing
    sales prices (or, as set forth in the next succeeding sentence, the last asked
    prices) of one share of Common Stock for the ten Trading Days ending on the
    tenth Trading Day prior to the date on which such offer is first announced
    and (ii) the average of the closing sales prices (or, as set forth in the next
    succeeding sentence, the last asked prices) of one share of Common Stock for
    the sixty Trading Days ending on the tenth Trading Day prior to the date on
    which such offer is first announced; provided, however, that notwithstanding the foregoing, until the first anniversary of the date of this Agreement, the Minimum Value shall in no event be less that $31.25. For purposes
  of determining the Minimum Value, the closing sales prices shall be as reported on the national securities exchange or automated quotation system on which the Common Stock is traded, or if the Common Stock is not traded on a national securities
  exchange or automated quotation system, in lieu of closing sales prices, last asked prices shall be used. The value of any non-cash consideration offered for these purposes shall be the lesser of the average closing sales prices (or, as set forth in
  the previous sentence, the last asked prices of the security offered) for either the ten Trading Days or sixty Trading Days, in each case ending on the tenth Trading Day after the commencement of the offer; 
  

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              (v) such Person making such offer must (a) have obtained customary firm written financing commitments containing only conditions to funding typical for transactions of this type from recognized
    financing sources and/or have on hand cash or cash equivalents, which will be available at the time of the purchase of the Common Stock pursuant to the offer in an amount sufficient to fund the cash portion of the offer and pay all related expenses
    (including amounts necessary to repurchase or pay any indebtedness of the Company or its Subsidiaries which will become due upon or as a result of consummation of such tender offer) and (b) set forth a copy of any such financing commitments and/or
    evidence of the cash or cash equivalents on hand in the offer materials that are sent to holders of the Common Stock pursuant to the rules of the Securities and Exchange Commission; and 
  

  
              (vi) prior
    to the Commencement Date, such Person shall have made an irrevocable written
    commitment to the Company (x) to consummate a merger promptly upon the completion
    of such offer, whereby all outstanding shares of Common Stock not purchased
    in such offer (other than shares beneficially owned by the Person(s) making
    such offer and the shares beneficially owned by such Person(s)’ Affiliates and Associates) will be converted into the
  right to receive per share consideration equal in form and value to the consideration paid in such offer, subject only to the condition that the Board shall have granted any approvals required to enable such Person to consummate such merger
  following consummation of such offer without obtaining the vote of any stockholder (other than the Person(s) making the offer and such Person(s)’ Affiliates and Associates), (y) that such person will not make any amendment to such offer that
  reduces the per share price offered (other than a reduction to reflect any dividend declared by the Company after the commencement of such offer or any material change in the capital structure of the Company initiated by the Company after the
  commencement of such offer, whether by way of recapitalization, reorganization, repurchase or otherwise), changes the form of consideration offered, or reduces the number of shares being sought or that is otherwise in any other respect materially
  adverse to the Company’s stockholders, and (z) that neither such Person
  nor any of its Affiliates or Associates will make any other offer for any equity
  securities of the Company for a period of six months after the commencement of
  the original offer if such original offer does not result in the tender of the
  number of shares of Common Stock required to be purchased pursuant to clause
  (iii) above, unless another tender offer by another party for all outstanding
  shares of Common Stock is commenced (A) at a consideration per share (as determined
  by a nationally recognized investment banking firm designated by the Board) in
  excess of that provided for in such original offer (in which event any new offer
  by such Person or any of its Affiliates or Associates must be at a consideration
  (as determined by a nationally recognized investment banking firm designated
  by the Board) 
  

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    no less than that provided for in such higher offer, or (B) with the approval of the Board (in which event any new offer by such Person or of any of its Affiliates or Associates must be at a price no less than that provided for in
    such approved offer). 
  

            (z) “Record Date” shall have the meaning set forth in the first “WHEREAS” clause
  at the beginning of this Agreement. 

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

            (bb) “Rights” shall have the meaning set forth in the first “WHEREAS” clause
  at the beginning of this Agreement. 

            (cc) “Rights Agent” shall mean the Person named as the “Rights Agent” in the first paragraph of this Agreement until a successor Rights Agent shall have become such pursuant to the
applicable provisions hereof, and thereafter “Rights Agent” shall mean such successor Rights Agent. If at any time there is more than one Person appointed by the Company as Rights Agent pursuant to the applicable provisions of this
Agreement, “Rights Agent” shall mean and include each such Person. 

            (dd) “Rights Certificate” shall
  have the meaning set forth in Section 3(d) hereof. 

            (ee) “Section 11(a)(ii) Event” shall
  have the meaning set forth in Section 11(a)(ii) hereof. 

            (ff) “Section 11(a)(ii) Trigger Date” shall
  have the meaning set forth in Section 11(a)(iii) hereof. 

            (gg) “Section 13 Event” shall
  have the meaning set forth in Section 13(a) hereof. 

            (hh) “Spread” shall
  have the meaning set forth in Section 11(a)(iii) hereof. 

            (ii) “Stock Acquisition Date” shall
  mean the first date of public announcement by the Company or an Acquiring Person
  that an Acquiring Person has become such. 

            (jj) “Subsidiary” shall
  mean, with reference to any Person, any corporation or other entity of which
  securities or other ownership interest having ordinary voting power sufficient,
  in the absence of contingencies, to elect a majority of the board of directors
  or other persons performing similar functions of such corporation or other
  entity are at the time directly or indirectly beneficially owned or otherwise
  controlled by such Person and any Associate or Affiliate of such Person. 

  8

            (kk) “Substitution Period” shall
  have the meaning set forth in Section 11(a)(iii) hereof. 

            (ll) “Summary of Rights” shall
  have the meaning set forth in Section 3(a) hereof. 

            (mm) “Trading Day” shall
  have the meaning set forth in Section 11(d) hereof. 

            (nn) “Triggering Event” shall
  mean any Section 11(a)(ii) Event or any Section 13 Event. 

            Section 2. Appointment of Rights Agent.
  The Company hereby appoints the Rights Agent to act as agent for the Company
  and the holders of the Rights (who, in accordance with Section 3 hereof, shall
  prior to the Distribution Date also be the holders of Common Stock of 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 ten days’ prior written
  notice to the Rights Agent. The Rights Agent shall have no duty to supervise,
  and in no event shall be liable for, the acts or omissions of any such Co-Rights
  Agent. In the event that the Company appoints one or more Co-Rights Agents,
  the respective duties of the Rights Agent and any Co-Rights Agents shall be
  as the Company shall determine and any actions which may be taken by the Rights
  Agent pursuant to the terms of this Agreement may be taken by any such Co-Rights
  Agent. 

            Section 3. Issuance of Rights Certificates. 

            (a) Until the
  Close of Business on the day which is the earlier of (i) the tenth day after
  the Stock Acquisition Date or (ii) the tenth (10th) Business Day (or such later
  date as may be determined by action of the Board prior to such time as any
  Person becomes an Acquiring Person) after the date of the commencement by any
  Person (other than an Exempt Person) of a tender or exchange offer upon the
  successful consummation of which such Person, or any Affiliate or Associate
  of such Person, would be an Acquiring Person (including any such date which
  is on or following the date of this Agreement and prior to the issuance of
  the Rights; the earlier of such dates being herein referred to as the “Distribution Date”),
  (x) the Rights shall be evidenced by the certificates for Common Stock (or
  in the case of uncertificated shares of Common Stock, by the book-entry account
  that evidences record ownership for such shares) registered in the names of
  the holders of Common Stock and not by separate Right certificates and the
  record holders of such certificates (or such book-entry accounts) for Common
  Stock shall be the record holders of the Rights represented thereby and (y)
  each Right shall be transferable only simultaneously and together with the
  transfer of a share of Common Stock (subject to adjustment as hereinafter provided).
  Until the Distribution Date (or, if earlier, the Expiration Date or Final Expiration
  Date), the surrender for transfer of any certificate for Common Stock (or the
  effectuation of a book-entry transfer of shares of Common Stock) shall constitute
  the surrender for transfer of the Right or Rights associated with the Common
  Stock evidenced thereby. 

  9

            (b) Rights
  shall be issued in respect of all shares of Common Stock that become outstanding
  after the Record Date but prior to the earliest of the Distribution Date, the
  Expiration Date or the Final Expiration Date and, to the extent provided in
  Section 22 hereof, in respect of shares of Common Stock issued after the Distribution
  Date and prior to the earlier of the Expiration Date or Final Expiration Date.
  Certificates for Common Stock (including, without limitation, certificates
  issued upon original issuance, disposition from the Company’s treasury
  or transfer or exchange of Common Stock) after the Record Date but prior to
  the earliest of the Distribution Date, the Expiration Date, or the Final Expiration
  Date shall have impressed, printed, written or stamped thereon or otherwise
  affixed thereto the following legend: 

  
    
      The Board of Directors of MCI, Inc. (the “Company”) has adopted a Rights Agreement by and between the Company and The Bank of New York (the “Rights Agent”), as it may be amended from time to time (the
“Agreement”), the terms of which are incorporated herein by reference
        and a copy of which is on file at the principal executive offices of the Company.
        From and after the Record Date, as defined in the Agreement, this certificate
        will evidence and entitle the holder hereof to the same number of Rights (subject
        to adjustment) as the number of shares of Common Stock represented by this certificate,
        such Rights being on the terms provided under the Rights Agreement. Under certain
        circumstances, as set forth in the Agreement, such Rights shall be evidenced
        by separate certificates and shall no longer be evidenced by this certificate.
        The Company shall mail to the registered holder of this certificate a copy of
        the Agreement without charge within five Business Days after receipt of a written
      request therefore. As provided in 
      Section 7(e) of the Agreement, Rights issued to or 
      Beneficially Owned by Acquiring Persons or their 
      Affiliates or Associates (as such terms are defined in the 
      Agreement) or any subsequent holder of such Rights shall be null and void and may not be exercised by or transferred to any Person. The Rights shall not be exercisable, and shall be void so long as held, by holders in any
jurisdiction where the requisite qualification to the issuance to such holder, or the exercise by such holder, of the Rights in such jurisdiction shall not have been obtained or be obtainable. 

  

  With respect to such certificates containing the foregoing legend, until the Distribution Date the Rights associated with the Common Stock represented by such certificates shall be evidenced by such certificates (or in the case of
uncertificated shares of Common Stock, by the book-entry account that evidences record ownership of such shares), and the surrender for transfer of any such certificate (or book-entry account), except as otherwise provided herein, shall also
constitute the transfer of the Rights associated with the Common Stock (or book-entry account) represented thereby. In the event that the 

  10

  Company purchases or otherwise acquires any Common Stock after the Record Date but prior to the Distribution Date, any Rights associated with such Common Stock shall be deemed canceled and retired so that the Company shall not be
entitled to exercise any Rights associated with the Common Stock which are no longer outstanding.
  Notwithstanding this paragraph (c), the omission of a legend shall not affect the enforceability of any part of this Agreement or the rights of any holder of the Rights. 

            (c) As soon
  as practicable after the Distribution Date, the Company will prepare and execute,
  the Rights Agent will countersign, and the Company will send or cause to be
  sent (and the Rights Agent will, if requested, send), by first class mail,
  postage prepaid, to each record holder of the Common Stock as of the Close
  of Business on the Distribution Date, as shown by the records of the Company,
  at the address of such holder shown on such records, a certificate in the form
  provided by Section 4 hereof (a “Right Certificate”), evidencing
  one Right (subject to adjustment as provided herein) for each share of Common
  Stock so held. As of and after the Distribution Date, the Rights shall be evidenced
  solely by Right Certificates and may be transferred by the transfer of the
  Right Certificate as permitted hereby, separately and apart from any transfer
  of one or more shares of Common Stock. 

            Section 4. Form of Rights Certificates. 

            (a) The Rights Certificates (and the forms of election to purchase, assignment and certificate contained therein to be printed on the reverse thereof) shall each be substantially in the form attached
hereto as Exhibit A and may have such marks of identification or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Agreement, or as may
be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange on which the Rights may from time to time be listed, or to conform to usage. Subject to the
provisions of Section 11 and Section 22 hereof, the Rights 
  Certificates, whenever distributed, shall be dated
  as of the Record Date and on their face shall entitle the holders thereof to
  purchase such number of shares of Common Stock of the Company as shall be set
  forth therein at the exercise price set forth therein (such exercise price
  per share of Common Stock of the Company, as adjusted from time to time hereunder,
  the “Purchase Price”), but the amount and type of securities purchasable
  upon the exercise of each Right and the Purchase Price thereof shall be subject
  to adjustment as provided herein. 

            (b) Any Rights Certificate issued pursuant to Section 3(d) or Section 22 hereof that represents Rights beneficially owned by: (i) an Acquiring Person or any Associate or Affiliate of an Acquiring
Person; (ii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee after the Acquiring Person becomes such; or (iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) 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 such Acquiring Person has any continuing 

  11

  agreement, arrangement or understanding (whether or not in writing) regarding the transferred Rights or (B) a transfer which the Board, in its sole discretion, has determined is part of a plan, arrangement or understanding which
has as a primary purpose or effect avoidance of the provisions of Section 7(e) hereof, and any Rights Certificate issued pursuant to Section 6 or Section 11 hereof upon transfer, exchange, replacement or adjustment of any other Rights Certificate
referred to in this sentence, shall contain (to the extent feasible) the following legend: 

  
    The Rights represented by this Rights Certificate are or were beneficially owned by a Person who is, was or became an Acquiring Person or an Associate or Affiliate of an Acquiring Person (as such terms are defined in the Renewed
    Rights Agreement). Accordingly, this Rights Certificate and the Rights represented hereby may become null and void in the circumstances specified in Section 7(e) of such Agreement. 
  

            Section 5. Countersignature and Registration. 

            (a) The Rights Certificates shall be executed under seal on behalf of the Company by its Chairman of the Board, its President or any Vice President, either manually or by facsimile signature, and by
the Secretary or any Assistant Secretary of the Company, either manually or by facsimile signature. The Rights Certificates shall be manually countersigned by an authorized signatory of the Rights Agent and shall not be valid for any purpose unless
so countersigned. In case any officer of the Company who shall have signed any of the Rights Certificates shall cease to be such officer of the Company before countersignature by an authorized signatory of the Rights Agent and issuance and delivery
by the Company, such Rights Certificates, nevertheless, may be countersigned by an authorized signatory of the Rights Agent and issued and delivered by the Company with the same force and effect as though the person who signed such Rights
Certificates had not ceased to be such officer of the Company; and any Rights Certificate may be signed on behalf of the Company by any person who, at the actual date of the execution of such Rights Certificate, shall be a proper 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 an officer. 

            (b) Following the Distribution Date, the Rights Agent will keep or cause to be kept, at its principal office or offices designated as the appropriate place for surrender of Rights Certificates upon
exercise or transfer, books for registration and transfer of the Rights Certificates issued hereunder. Such books shall 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 and the date of each of the Rights Certificates. 

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

  12

            (a) Subject
  to the provisions of Section 4(b), Section 7(e) and Section 14 hereof, at any
  time after the Close of Business on the Distribution Date, and at or prior
  to the Close of Business on the Expiration Date, any Rights Certificate or
  Rights Certificates may be transferred, split up, combined or exchanged for
  another Rights Certificate or Rights Certificates entitling the registered
  holder to purchase a like number of shares of Common Stock of the Company (or,
  following the occurrence of a Triggering Event, other securities, cash or other
  assets, as the case may be) as the Rights Certificate or Rights Certificates
  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 or Rights Certificates shall make such request
  in writing delivered to the Rights Agent, and shall surrender the Rights Certificate
  or Rights Certificates to be transferred, split up, combined or exchanged,
  with the forms of assignment and certificate contained therein duly executed,
  at the principal office or offices of the Rights Agent designated for such
  purpose. Neither the Rights Agent nor the Company shall be obligated to take
  any action whatsoever with respect to the transfer of any such surrendered
  Rights Certificate or Rights Certificates until the registered holder shall
  have completed and signed the certificate contained in the form of assignment
  on the reverse side of such Rights Certificate or Rights Certificates and shall
  have provided such additional evidence of the identity of the Beneficial Owner
  (or former Beneficial Owner) or Associates or Affiliates thereof as the Company
  shall reasonably request. Thereupon, the Rights Agent shall, subject to Section
  4(b), Section 7(e) and Section 14 hereof, countersign and deliver to the Person
  entitled thereto a Rights Certificate or Rights Certificates, as the case may
  be, as so requested. The Company 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 Rights Certificates. 

            (b) Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a valid Rights Certificate and, in case of loss, theft
or destruction, of indemnity or security reasonably satisfactory to them, and reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Rights
Certificate if mutilated, the Company will execute and deliver a new Rights Certificate of like tenor to the Rights Agent for countersignature and delivery to the registered owner in lieu of the Rights Certificate so lost, stolen, destroyed or
mutilated. 

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

            (a) Subject to Section 7(e) hereof, the registered holder of any Rights Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein including, without limitation, the
restrictions on exercisability set forth in Section 9(c), Section 11(a)(iii) and Section 23(a) hereof) in whole or in part at any time after the Distribution Date upon surrender of the Rights Certificate, with the form of election to purchase and
the certificate contained therein duly executed, to the Rights Agent at the principal office or offices of the Rights Agent designated for such purpose, together with payment of the aggregate Purchase Price with respect to the total number of shares
of 

  13

  Common Stock of the Company (or, following the
  occurrence of a Triggering Event, other securities, cash or other assets, as
  the case may be) as to which such surrendered Rights are then exercisable,
  at or prior to the earliest of (i) the Final Expiration Date, (ii) the time
  at which the Rights are redeemed as provided in Section 23 hereof and (iii)
  the time at which the Rights expire pursuant to Section 13(d) hereof (the earliest
  of (i), (ii) and (iii) being herein referred to as the “Expiration Date”). 

            (b) The Purchase Price for each share of Common Stock of the Company pursuant to the exercise of a Right shall initially be $75.00, shall be subject to adjustment from time to time as provided in
Sections 11 and 13(a) hereof and shall be payable in accordance with paragraph (c) below. 

            (c) Upon receipt
  of a Rights Certificate representing exercisable Rights, with the form of election
  to purchase and the certificate contained therein duly executed, accompanied
  by payment, with respect to each Right so exercised, of the Purchase Price,
  as such amount may be reduced pursuant to Section 11(a)(iii) hereof, for each
  share of Common Stock of the Company (or, following the occurrence of a Triggering
  Event, for other securities, cash or other assets, as the case may be) to be
  purchased (as set forth below) and an amount equal to any applicable transfer
  tax, the Rights Agent shall, subject to Sections 7(f) and 20(k) hereof, thereupon
  promptly (i) requisition from any transfer agent of the shares of Common Stock
  of the Company (or make available, if the Rights Agent is the transfer agent
  for such shares) certificates for the total number of shares of Common Stock
  of the Company to be purchased, and the Company hereby irrevocably authorizes
  its transfer agent to comply with all such requests, (ii) requisition from
  the Company the amount of cash, if any, to be paid in lieu of fractional shares
  in accordance with Section 14 hereof, (iii) after receipt of such certificates,
  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) after receipt thereof, deliver such cash, if any,
  to, or upon the order of, the registered holder of such Rights Certificate.
  The payment of the Purchase Price (as such amount may be reduced pursuant to
  Section 11(a)(iii) hereof) shall be made in cash or by certified check, cashier’s
check or bank draft payable to the order of the Company. In the event that the Company is obligated to issue other securities, pay cash or distribute other property pursuant to this Section 7(c) or Section 11(a) hereof, 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. In the event that, immediately prior to the occurrence of a Distribution Date, the number of
shares of Common Stock of the Company which are authorized by the Company’s
certificate of incorporation, as amended and in effect at such time, but not
outstanding or reserved for issuance for purposes other than upon exercise of
the Rights is not sufficient to permit exercise in full of the Rights in accordance
with their terms, the Company, acting by resolution of the Board, shall follow
the same procedures and may take any of the same actions in connection with the
exercise of Rights under this Section 7(c) as are required or permitted to be
followed or taken pursuant to Section 11(a)(iii) hereof with respect to substitution
of value in connection with the exercise of Rights under Section 11(a)(ii) hereof.
The Company reserves the right to require, prior to the occurrence of a 

  14

  Triggering Event that, upon any exercise of Rights, a number of Rights be exercised so that only whole shares of Common Stock of the Company would be issued. 

            (d) In case the registered holder of any Rights Certificate shall exercise less than all of the Rights evidenced thereby, a new Rights Certificate evidencing Rights equivalent to the Rights remaining
unexercised shall 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 or names as may be designated by such holder, subject to the provisions of Section 14
hereof. 

            (e) Notwithstanding anything in this Agreement to the contrary, from and after the first occurrence of a Section 11(a)(ii) Event, any Rights beneficially owned by (i) an Acquiring Person or an
Associate or Affiliate of an Acquiring Person, (ii) a transferee of any such Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee after such Acquiring Person becomes such or (iii) a transferee of any such Acquiring
Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with such Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from such
Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with whom such Acquiring Person has any continuing agreement, arrangement or understanding (whether or not in writing) regarding the transferred Rights or (B)
a transfer which the Board has determined is part of a plan, arrangement or understanding which has as a primary purpose or effect the avoidance of this Section 7(e), shall become null and void without any further action and no holder of such Rights
shall have any rights whatsoever with respect to such Rights, whether under any provision of this Agreement or otherwise. The Company shall use all reasonable efforts to ensure that the provisions of this Section 7(e) and Section 4(b) hereof are
complied with, but shall have no liability to any holder of Rights Certificates or other Person as a result of its failure to make any determinations with respect to an Acquiring Person or any of their Associates, Affiliates or transferees
hereunder. 

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

            Section 8. Cancellation and Destruction of Rights Certificates. All Rights Certificates surrendered for the purpose of exercise, transfer,
split up, combination or exchange shall, if surrendered to the Company or any of its agents, be delivered to the Rights Agent for cancellation or in cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by it, and no Rights
Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Company shall 

  15

  deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Rights Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The Rights
Agent shall deliver all cancelled Rights Certificates to the Company, or shall, at the written request of the Company, destroy such cancelled Rights Certificates and, in such case, shall deliver a certificate of destruction thereof to the Company.
  

            Section 9. Reservation and Availability of Capital Stock. 

            (a) The Company covenants and agrees that, from and after the 
  Distribution Date, it will cause to be reserved and kept available out of its authorized and unissued shares of Common Stock of the Company (and, following the occurrence of a Triggering Event, other securities) or out of its
authorized and issued shares of Common Stock of the Company held in its treasury, the number of shares of Common Stock of the Company (and, following the occurrence of a Triggering Event, the amount of other securities) that, as provided in this
Agreement (including Section 11(a)(iii) hereof) will be sufficient to permit the exercise in full of all outstanding Rights. 

            (b) So long as the shares of Common Stock of the Company (and, following the occurrence of a Triggering Event, other securities) issuable and deliverable upon the exercise of the Rights may be listed
on any national securities exchange, the Company shall use all reasonable efforts to cause, from and after such time as the Rights become exercisable, all shares reserved for such issuance to be listed on such exchange upon official notice of
issuance upon such exercise.

            (c) The Company
  shall use all reasonable efforts to (i) file, as soon as practicable following
  the earliest date after the first occurrence of a Triggering Event in which
  the consideration to be delivered by the Company upon exercise of the Rights
  has been determined in accordance with this Agreement, or as soon as required
  by law following the Distribution Date, as the case may be, a registration
  statement under the Act on an appropriate form with respect to the Common Stock
  of the Company or other securities purchasable upon exercise of the Rights,
  (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 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 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 and other jurisdictions
  in connection with the exercisability of the Rights. The Company may, acting
  by resolution of the Board, temporarily suspend, for a period of time not to
  exceed 90 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. In
  the event of any such suspension, the Company shall issue a public announcement
  stating that the exercisability of the Rights has been temporarily suspended
  and shall issue a public announcement at such time as the suspension is no
  longer in effect. In addition, if the Company shall determine that a registration
  statement is required in other circumstances following the Distribution Date,
  the Company may similarly temporarily 

  16

  suspend the exercisability of the Rights until such time as a registration statement has been declared effective. Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be exercisable in any
jurisdiction if the requisite qualification in such jurisdiction shall not have been obtained or the exercise thereof shall not otherwise be permitted under applicable law or a registration statement shall not have been declared effective. 

            (d) The Company covenants and agrees that it will take all such action as may be necessary to ensure that all shares of Common Stock of the Company (and, following the occurrence of a Triggering
Event, other securities) delivered upon exercise of Rights shall, at the time of delivery of the certificates for such shares (subject to payment of the Purchase Price), be duly and validly authorized and issued and fully paid and nonassessable.
  

            (e) The Company
  further covenants and agrees that, except as set forth in Section 6(a) hereof
  and this Section 9(e), it will pay when due and payable any and all federal
  and state transfer taxes and charges which may be payable in respect of the
  issuance or delivery of the Rights Certificates and of any certificates for
  shares of Common Stock of the Company (or other securities, as the case may
  be) upon the exercise of Rights. The Company shall not, however, be required
  to pay any transfer tax which may be payable in respect of any transfer or
  delivery of Rights Certificates to a Person other than, or the issuance or
  delivery of a number of shares of Common Stock of the Company (or other securities,
  as the case may be) in respect of a name other than that of, the registered
  holder of the Rights Certificates evidencing Rights surrendered for exercise,
  nor shall the Company be required to issue or deliver any certificates for
  a number of shares of Common Stock of the Company (or other securities, as
  the case may be) in a name other than that of the registered holder upon the
  exercise of any Rights until such tax shall have been paid (any such tax being
  payable by the holder of such Rights Certificate at the time of surrender)
  or until it has been established to the Company’s satisfaction that no
  such tax is due. 

            Section 10. Record Date for Securities Issued Upon Exercise. Each Person in whose name any certificate for a number of shares of Common Stock
of the Company (or other securities, as the case may be) is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of such shares of Common Stock of the Company (or other securities, as the case may
be) represented thereby on, and such certificate shall be dated, the date upon which the Rights Certificate evidencing such Rights was duly surrendered and payment of the Purchase Price (and all applicable transfer taxes) was made; provided,
however, that if the date of such surrender and payment is a date upon which the transfer books for the Common Stock of the Company (or other securities, as the case may be) are closed, such Person shall be deemed to have become the record holder of
such shares (fractional or otherwise) on, and such certificate shall be dated, the next succeeding Business Day on which the transfer books for the Common Stock of the Company (or other securities, as the case may be) are open. Prior to the exercise
of the Rights evidenced thereby, the holder of a Rights Certificate, as such, shall not be entitled to any rights of a shareholder of the Company (or the Principal Party) with respect to shares for which the Rights shall be exercisable, 

  17

  including without limitation the right to vote, to receive dividends or other distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company (or the Principal
Party), except as provided herein. 

            Section 11. Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights. The Purchase Price, the number and kind of shares,
or fractions thereof, purchasable upon exercise of each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 11. 

  
              (a) (i) In the event the Company shall at any time after the date of this Agreement (A) declare a dividend on the outstanding shares of Common Stock of the Company payable in shares of Common Stock of
    the Company, (B) subdivide or split the outstanding shares of the Common Stock of the Company, (C) combine or consolidate the outstanding shares of Common Stock of the Company into a smaller number of shares or (D) issue any shares of its capital
    stock in a reclassification of the Common Stock of the Company (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving corporation), except as otherwise provided in this
    Section 11(a) and Section 7(e) hereof, the Purchase 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
    shares of Common Stock of the Company (or other securities, as the case may be) issuable on such date, shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled to receive, upon payment of the
    Purchase Price then in effect, the aggregate number and kind of shares of Common Stock or capital stock, as the case may be, which, if such Right had been exercised immediately prior to such date, whether or not such Right was then exercisable, and
    at a time when the transfer books for the Common Stock (or other capital stock, as the case may be) 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. If an event occurs which would require an adjustment under both this Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided for in this Section 11(a)(i) shall be in addition to,
    and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii) hereof. 
  

  
              (ii)    In
    the event (a “Section 11(a)(ii) Event”) that any Person shall, at
    any time after the date hereof, become an Acquiring Person, then proper provision
    shall be made so that promptly after the date of occurrence of an Section 11(a)(ii)
    Event, each holder of a Right (except as provided below and in Section 7(e)
    hereof) shall thereafter have the right to receive, upon exercise thereof at
    the then current Purchase Price (but in no event less than the par value per
    share) in accordance with the terms of this Agreement, such number of shares
    of Common Stock of the Company as shall equal the result obtained by (x) multiplying
    the then current Purchase Price by the then number of shares of Common Stock
    of the Company for which a Right was exercisable immediately prior to the first
    occurrence of a Section 11(a)(ii) Event (whether or not such 
  

  18

  
    Right was then exercisable) and (y) dividing that
      product (which following such first occurrence shall thereafter be referred
      to as the “Purchase Price” for each Right and for all purposes of this Agreement) by 50% of
    the Current Market Price per share of Common Stock of the Company on the date of such first occurrence (such number of shares being referred to as the “Adjustment Shares”). 
  

  
              (iii) In
    lieu of issuing shares of Common Stock of the Company in accordance with Section
    11(a)(ii) hereof, the Company, acting by resolution of the Board, may, and
    in the event that the number of shares of Common Stock of the Company which
    are authorized by the Company’s certificate of incorporation but not outstanding or reserved for issuance for purposes other than upon exercise
  of the Rights is not sufficient to permit the exercise in full of the Rights in accordance with the foregoing subparagraph (ii) of this Section 11(a), the Company, acting by resolution of the Board, shall: (A) determine the excess of (1) the value
  of the Adjustment Shares issuable upon the exercise of a Right (the “Current Value”) over (2) the Purchase Price attributable to each Right (such excess being referred to as the “Spread”) and (B) with respect to all or a portion
  of each Right (subject to Section 7(e) hereof), make adequate provision to substitute for the Adjustment Shares, upon payment of the applicable Purchase Price, (1) cash, (2) a reduction in the Purchase Price (but in no event shall the Purchase Price
  be less than the par value per share), (3) equity securities, if any, of the Company other than Common Stock of the Company (including without limitation shares, or units of shares, which the Board has deemed to have the same value as shares of
  Common Stock of the Company (such shares being referred to herein as “Common Stock Equivalents”)), (4) debt securities of the Company, (5) other assets or (6) any combination of the foregoing, which, when added to any shares of Common
  Stock of the Company issued upon such exercise, has an aggregate value equal to the Current Value, 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; provided, however, that if the Company shall not have 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) hereof, as such date may be extended pursuant to Section 23(a) hereof or amended pursuant to Section 26 hereof, expires (the later of (x) and (y) being referred to herein as the
“Section 11(a)(ii) Trigger Date”), then the Company shall be obligated to deliver, upon the surrender for exercise of a Right and without requiring payment of the Purchase Price, shares of Common Stock of the Company (to the extent
  available) and then, if necessary, cash, which shares and cash have an aggregate value equal to the Spread. If the Board shall determine in good faith that it is likely that sufficient additional shares of Common Stock of the Company could be
  authorized for issuance upon exercise in full of the Rights, the 30-day period set forth above may be extended to the extent necessary, but not more than 90 days after the Section 11(a)(ii) Trigger Date, in order that the Company may seek
  shareholder approval for the authorization of such additional shares (such period, as it may be extended, being referred to herein as the “Substitution Period”).
  To the extent that the 
  

  19

  
    Company determines that some action need be taken pursuant to the first or second sentences of this Section 11(a)(iii), the Company (x) shall provide, subject to Section 7(e) hereof, that such action shall apply uniformly to all
    outstanding Rights and (y) may suspend the exercisability of the Rights until the expiration of the Substitution Period in order to seek any authorization of additional shares 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 shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended and a public announcement at such
    time as the suspension is no longer in effect. For purposes of this Section 11(a)(iii), the value of the Common Stock of the Company shall be the Current Market Price per share of the Common Stock of the Company on the Section 11(a)(ii) Trigger
    Date, and the value of any Common Stock Equivalent shall be deemed to be equal to the value of the Common Stock of the Company on such date. 
  

            (b) In case
  the Company shall fix a record date for the issuance of rights, options or
  warrants to all holders of Common Stock of the Company entitling them to subscribe
  for or purchase (for a period expiring within 45 calendar days after such record
  date) Common Stock of the Company or securities convertible into Common Stock
  of the Company or Common Stock Equivalents at a price per share of Common Stock
  of the Company or per share of Common Stock Equivalents (or having a conversion
  price per share, if a security convertible into Common Stock of the Company
  or Common Stock Equivalents) less than the Current Market Price per share of
  Common Stock of the Company on such record date, except as otherwise provided
  in Section 11(a) and Section 7(e) hereof, the Purchase Price to be in effect
  after such record date shall be determined by multiplying the Purchase Price
  in effect immediately prior to such record date by a fraction, the numerator
  of which shall be the sum of (i) the number of shares of Common Stock of the
  Company or Common Stock Equivalents outstanding on such record date, (ii) the
  number of shares of Common Stock of the Company or Common Stock Equivalents
  underlying securities outstanding on such record date which are convertible
  into Common Stock of the Company or Common Stock Equivalents and (iii) the
  number of shares of Common Stock of the Company which the aggregate subscription
  price of the total number of shares of Common Stock of the Company or Common
  Stock Equivalents so to be offered (or the aggregate initial conversion price
  of the convertible securities so to be offered) would purchase at such Current
  Market Price, and the denominator of which shall be the sum of (i) the number
  of shares of Common Stock of the Company outstanding on such record date, (ii)
  the number of shares of Common Stock of the Company or Common Stock Equivalents
  underlying securities outstanding on such record date which are convertible
  into Common Stock of the Company or Common Stock Equivalents and (iii) the
  number of additional shares of Common Stock of the Company or Common Stock
  Equivalents to be offered for subscription or purchase (or into which the convertible
  securities so to be offered are initially convertible). In case such subscription
  price may be paid by delivery of consideration part or all of which may be
  in a form other than cash, the value of such consideration shall be as determined
  in good faith by the Board, which determination shall be described in a statement
  filed with the Rights Agent and shall be conclusive for all purposes. Shares
  of Common Stock of 

  20

  the Company owned by or held for the account of the Company shall not be deemed outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is fixed, and in the event
that such rights, options or warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed. 

            (c) In case the Company shall fix a record date for a distribution to all holders of Common Stock of the Company (including any such distribution made in connection with a consolidation or merger in
which the Company is the continuing or surviving corporation) of evidences of indebtedness, cash (other than a regular periodic cash dividend out of the earnings or retained earnings of the Company), assets (other than a dividend payable in Common
Stock of the Company, but including any dividend payable in stock other than Common Stock of the Company) or subscription rights or warrants (excluding those referred to in Section 11(b) hereof), except as otherwise provided in Section 11(a) and
Section 7(e) hereof, the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the Current Market
Price per share of Common Stock of the Company on such record date, less the fair market value (as determined in good faith by the Board, which determination shall be described in a statement filed with the Rights Agent and shall be conclusive for
all purposes) of the portion of the cash, assets or evidences of indebtedness so to be distributed or of such subscription rights or warrants applicable to a share of Common Stock of the Company and the denominator of which shall be such Current
Market Price per share of Common Stock of the Company. Such adjustments shall be made successively whenever such a record date is fixed, and in the event that such distribution is not so made, the Purchase Price shall be adjusted to be the Purchase
Price which would have been in effect if such record date had not been fixed. 

            (d) For the
  purpose of any computation hereunder, other than computations made pursuant
  to Section 11(a)(iii) hereof, the “Current Market Price” per share
  of Common Stock on any date shall be deemed to be the average of the daily
  closing prices per share of such Common Stock for the 30 consecutive Trading
  Days immediately prior to such date, and for purposes of computations made
  pursuant to Section 11(a)(iii) hereof, the Current Market Price per share of
  Common Stock on any date shall be deemed to be the average of the daily closing
  prices per share of such Common Stock for the 10 consecutive Trading Days immediately
  following such date; provided, however, that in the event that the Current
  Market Price per share of the Common Stock is determined during a period following
  the announcement by the issuer of such Common Stock of (A) a dividend or distribution
  on such Common Stock payable in shares of such Common Stock or securities convertible
  into shares of such Common Stock (other than the Rights) or (B) any subdivision,
  combination, consolidation, reverse stock split or reclassification of such
  Common Stock, and prior to the expiration of the requisite 30-Trading Day or
  10-Trading Day period, as set forth above, after the ex-dividend date for such
  dividend or distribution, or the record date for such subdivision, combination,
  consolidation, reverse stock split, or reclassification, then, and in each
  such case, the Current Market Price shall be properly adjusted to take into
  account ex-dividend trading. The closing price for each day shall be the last
  sale price, regular way, or, in 

  21

  case no such sale takes place on such day, the
  average of the closing bid and asked prices, regular way, in either case as
  reported in the principal consolidated transaction reporting system with respect
  to securities listed or admitted to trading on the New York Stock Exchange
  or, if the shares of Common Stock are not listed or admitted to trading on
  the New York Stock Exchange, as reported in the principal consolidated transaction
  reporting system or as quoted by the Nasdaq National Market with respect to
  securities listed or admitted to trading on another national securities exchange
  or quoted by the Nasdaq National Market, respectively, or, if the shares of
  Common Stock are not listed or admitted to trading on any national securities
  exchange or quoted by the Nasdaq National Market, the last quoted price or,
  if not so quoted, the average of the high bid and low asked prices in the over-the-counter
  market, as reported by The Nasdaq Stock Market or such other quotation system
  then in use or, if on any such date the shares of Common Stock are not quoted
  by any such organization, the average of the closing bid and asked prices as
  furnished by a professional market maker making a market in the Common Stock
  selected by the Board. If on any such date the Common Stock is not publicly
  held or not so listed, admitted to trading or quoted, and no market maker is
  making a market in such Common Stock, Current Market Price shall mean the fair
  value of such shares on such date as determined in good faith by the Board,
  which determination shall be described in a statement filed with the Rights
  Agent and shall be conclusive for all purposes. The term “Trading Day” shall
  mean a day on which the principal national securities exchange on which the
  shares of Common Stock are listed or admitted to trading is open for the transaction
  of business or, if the shares of Common Stock are not listed or admitted to
  trading on any national securities exchange, a Business Day. 

            (e) Anything herein to the contrary notwithstanding, no adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at least one percent in the
Purchase Price; provided, however, that any adjustments which by reason of this Section 11(e) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 11 shall be
made to the nearest cent or to the nearest share of Common Stock of the Company, as the case may be. 

            (f) If as a result of an adjustment made pursuant to Section 11(a)(ii) or Section 13(a) hereof, the holder of any Right thereafter exercised shall become entitled to receive any shares of capital
stock other than Common Stock of the Company, thereafter the number of such other shares so receivable upon exercise of any Right and the Purchase Price thereof (or the number of Rights) shall be subject to adjustment from time to time in a manner
and on terms as nearly equivalent as practicable to the provisions with respect to the Common Stock of the Company contained in Sections 11(a), (b), (c), (e), (g), (h), (i), (j), (k), (1) and (m) hereof,
and the provisions of Sections 7, 9, 10, 13 and 14 hereof with respect to the
Common Stock of the Company shall apply on like terms to any such other shares;
provided, however, that the Company shall not be liable for its inability to
reserve and keep available for issuance upon exercise of the Rights pursuant
to Section 11(a)(ii) hereof a number of shares of Common Stock of the Company
greater than the number then authorized by the Company’s certificate of
incorporation, but not outstanding or reserved for any other purpose. 

  22

            (g) All Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the number of
shares of Common Stock of the Company purchasable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided herein. 

            (h) Unless the Company shall have exercised its election as provided in Section 11(i) hereof, upon each adjustment of the Purchase Price as a result of the calculations made in Sections 11(b) and (c)
hereof, each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of shares of Common Stock of the Company (calculated to the nearest share)
obtained by (i) multiplying (x) the number of shares of Common Stock of the Company covered by a Right immediately prior to this adjustment by (y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price, and (ii)
dividing the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price. 

            (i) The Company
  may elect on or after the date of any adjustment of the Purchase Price to adjust
  the number of Rights, in lieu of any adjustment in the number of shares of
  Common Stock of the Company purchasable upon the exercise of a Right. Each
  of the Rights outstanding after the adjustment in the number of Rights shall
  be exercisable for the number of shares of Common Stock of the Company for
  which a Right was exercisable immediately prior to such adjustment. Each Right
  held of record prior to such adjustment of the number of Rights shall become
  that number of Rights (calculated to the nearest Right) obtained by dividing
  the Purchase Price in effect immediately prior to adjustment of the Purchase
  Price by the Purchase Price in effect immediately after adjustment of the Purchase
  Price. The Company shall make a public announcement of its election to adjust
  the number of Rights, indicating the record date for the adjustment, and, if
  known at the time, the amount of the adjustment to be made. This record date
  may be the date on which the Purchase Price is adjusted or any day thereafter,
  but, if the Rights Certificates have been issued, shall be at least 10 days
  later than the date of the public announcement. If Rights Certificates have
  been issued, upon each adjustment of the number of Rights pursuant to this
  Section 11(i), the Company shall, as promptly as practicable, cause to be distributed
  to holders of record of Rights Certificates on such record date Rights Certificates
  evidencing, subject to Section 14 hereof, the additional Rights to which such
  holders shall be entitled as a result of such adjustment or, at the option
  of the Company, shall cause to be distributed to such holders of record in
  substitution and replacement for the 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 shall be entitled after such adjustment. Rights Certificates so to
  be distributed shall be issued, executed and countersigned in the manner provided
  for herein (and may bear, at the option of the Company, the adjusted Purchase
  Price) and shall be registered in the names of the holders of record of Rights
  Certificates on the record date specified in the public announcement. 

            (j) Irrespective of any adjustment or change in the Purchase Price or the number of shares of Common Stock of the Company issuable upon the exercise of the 

  23

  Rights, the Rights Certificates theretofore and thereafter issued may continue to express the Purchase Price per share of Common Stock of the Company and the number of shares of Common Stock of the Company which were expressed in
the initial Rights Certificates issued hereunder. 

            (k) Before taking any action that would cause an adjustment reducing the Purchase Price below the par value, if any, of the number of shares of Common Stock of the Company issuable upon exercise of
the Rights, the Company shall use all reasonable efforts to take any corporate action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue, fully paid and nonassessable, such number of shares
of Common Stock of the Company at such adjusted Purchase Price. 

            (l) In any
  case in which this Section 11 shall require that an adjustment in the Purchase
  Price be made effective as of a record date for a specified event, the Company
  may elect to defer until the occurrence of such event the issuance to the holder
  of any Right exercised after such record date of the number of shares of Common
  Stock of the Company or other capital stock or securities of the Company, if
  any, issuable upon such exercise over and above the number of shares of Common
  Stock of the Company or other capital stock or securities of the Company, if
  any, issuable upon such exercise on the basis of the Purchase Price in effect
  prior to such adjustment; provided, however, that the Company shall deliver
  to such holder a due bill or other appropriate instrument evidencing such holder’s
  right to receive such additional shares (fractional or otherwise) or securities
  upon the occurrence of the event requiring such adjustment. 

            (m) Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make such adjustments in the Purchase Price, in addition to those adjustments expressly required by
this Section 11, as and to the extent that in its good faith judgment the Board shall determine to be advisable in order that any (i) consolidation or subdivision of the Common Stock of the Company, (ii) issuance wholly for cash of any shares of
Common Stock of the Company at less than the Current Market Price, (iii) issuance wholly for cash of shares of Common Stock of the Company or securities which by their terms are convertible into or exchangeable for shares of Common Stock of the
Company, (iv) stock dividends or (v) issuance of rights, options or warrants referred to in this Section 11, hereafter made by the Company to holders of its Common Stock shall not be taxable to such shareholders. 

            (n) The Company covenants and agrees that it shall not, at any time after the Distribution Date, (i) consolidate with any other Person (other than a Subsidiary of the Company in a transaction which
complies with Section 11(o) hereof), (ii) merge with or into any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof) or (iii) sell or transfer (or permit any Subsidiary to sell or
transfer), in one transaction or a series of related transactions, assets or earning power aggregating more than 50% of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the
Company or any of its Subsidiaries in one or more transactions each of which complies with Section 11(o) hereof) if (x) at the time of or immediately after such consolidation, 

  24

  merger, sale or transfer there are any rights,
  warrants or other instruments or securities outstanding or agreements in effect
  which would substantially diminish or otherwise eliminate the benefits intended
  to be afforded by the Rights or (y) prior to, simultaneously with or immediately
  after such consolidation, merger, sale or transfer, the shareholders of the
  Person who constitutes, or would constitute, the “Principal Party” for
  purposes of Section 13(a) hereof shall have received a distribution of Rights
  previously owned by such Person or any of its Associates and Affiliates. 

            (o) The Company covenants and agrees that, after the Distribution Date, it will not, except as permitted by Section 23 or Section 26 hereof, take (or permit any Subsidiary to take) any action if at
the time 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. 

            Section 12. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made as provided in Section 11 or 13
hereof, the Company shall (a) promptly prepare a certificate setting forth such adjustment and a brief statement of the facts accounting for such adjustment, (b) promptly file with the Rights Agent, and with each transfer agent for the Common Stock
of the Company, a copy of such certificate and (c) mail a brief summary thereof to each record holder of a Rights Certificate (or, if prior to the Distribution Date, to each record holder of a certificate representing shares of Common Stock of the
Company) in accordance with Section 24 hereof. Notwithstanding the foregoing sentence, the failure of the Company to prepare such certificate or statement or make such filings or mailings shall not affect the validity of, or the force or effect of,
the requirement for such adjustment. The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment therein contained and shall not be deemed to have knowledge of any such adjustment unless and until it shall have
received such certificate. 

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

            (a) In the
  event (a “Section 13 Event”) that, on or after the Stock Acquisition
  Date, directly or indirectly, (x) the Company shall consolidate or otherwise
  combine with, or merge with or into, any other Person or Persons (other than
  a Subsidiary of the Company in a transaction which complies with Section 11(o)
  hereof) and the Company shall not be the continuing or surviving corporation
  of such consolidation, combination or merger, (y) any Person or Persons (other
  than a Subsidiary of the Company in a transaction which complies with Section
  11(o) hereof) shall consolidate or otherwise combine with, or merge with or
  into, the Company and the Company shall be the continuing or surviving corporation
  of such consolidation, combination or merger and, in connection with such consolidation,
  combination or merger, all or part of the outstanding shares of Common Stock
  of the Company shall be changed into or exchanged for stock or other securities
  of any other Person or Persons or cash or any other property or (z) the Company
  shall sell or otherwise transfer (or one or more of its Subsidiaries shall
  sell or otherwise transfer), in one transaction or a series of related transactions,
  assets or earning power aggregating more than 50% of the assets or earning 

  25

  power of the Company and its Subsidiaries (taken
  as a whole and calculated on the basis of the Company’s most recent regularly
  prepared financial statements) to any Person or Persons (other than the Company
  or any Subsidiary of the Company in one or more transactions each of which
  complies with Section 11(o) hereof); provided, however, that this clause (z)
  of Section 13(a) hereof shall not apply to the pro rata distribution by the
  Company of assets (including securities) of the Company or any of its Subsidiaries
  to all holders of Common Stock of the Company; then, and in each such case
  (except as may be contemplated by Section 13(d) hereof), proper provision shall
  be made so that: (i) each holder of a Right, except as provided in Section
  7(e) hereof, shall, on or after the later of (A) the date of the first occurrence
  of any such Section 13 Event or (B) the date of the expiration of the period
  within which the Rights may be redeemed pursuant to Section 23 hereof (as the
  same may be extended pursuant to Section 23(a) hereof or amended pursuant to
  Section 26 hereof), thereafter have the right to receive, upon the exercise
  thereof at the then current Purchase Price in accordance with the terms of
  this Agreement, such number of validly authorized and issued, fully paid, nonassessable
  and freely tradeable shares of Common Stock of the Principal Party, not subject
  to 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
  Purchase Price by the number of shares of Common Stock of the Company 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 shares of
  Common Stock of the Company for which a Right was exercisable immediately prior
  to the first occurrence of a Section 11(a)(ii) Event by the Purchase Price
  in effect immediately prior to such first occurrence), and (2) dividing that
  product (which, following the first occurrence of a Section 13 Event, shall
  be referred to as the
“Purchase Price” for each Right and for all purposes of this Agreement) by 50% of the Current Market Price per share of the Common Stock of such Principal Party on the date of consummation of such Section 13 Event; (ii) the shares of
Common Stock of such Principal Party received by each holder of a Right upon exercise of that Right shall be fully paid and nonassessable; (iii) such Principal Party shall thereafter be liable for, and shall assume, by virtue of such Section 13
Event, all the obligations and duties of the Company pursuant to this Agreement; (iv) the term “Company” shall
thereafter be deemed to refer to such Principal Party, it being specifically
intended that the provisions of Section 11 hereof shall apply only to such Principal
Party following the first occurrence of a Section 13 Event; (v) such Principal
Party shall take such steps (including without limitation the reservation of
a sufficient number of shares of its Common Stock) in connection with the consummation
of any such transaction as may be necessary to assure that the provisions hereof
shall thereafter be applicable, as nearly as reasonably may be, in relation to
its shares of Common Stock thereafter deliverable upon the exercise of the Rights;
and (vi) the provisions of Section 11(a)(ii) hereof shall be of no effect following
the first occurrence of any Section 13 Event. 

            (b) “Principal Party” shall mean: 

  
              (i)     in the case of any transaction described in clause (x) or (y) of the first sentence of Section 13(a) hereof, (A) the Person that is the
    issuer of any securities into which shares of Common Stock of the Company are converted, 
  

  26

  
    changed or exchanged in such merger, consolidation or combination (or, if there is more than one such issuer, the issuer the Common Stock of which has the greatest market value) or (B) if no securities are so issued, the Person
    that is the other party to such merger (and survives the merger), consolidation or combination (or, if there is more than one such Person, the Person the Common Stock of which has the greatest market value), or if the other party to the merger does
    not survive the merger, the Person that does survive the merger (including the Company, if it survives); and 
  

  
              (ii)    in the case of any transaction described in clause (z) of the first sentence of Section 13(a) hereof, the Person that is the party
  receiving the greatest portion of the assets or earning power transferred pursuant to such transaction or transactions or, if each Person that is a party to such transaction or transactions receives the same 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 Stock having the greatest market value;
  

  provided, however, that in any such case, (1) if
  the Common Stock of such Person is not at such time and has not been continuously
  over the preceding 12-month period registered under Section 12 of the Exchange
  Act, and such Person is a direct or indirect Subsidiary of another Person the
  Common Stock of which is and has been so registered, “Principal Party” shall refer to such other Person; (2) if the Common Stock of such Person is not and has not been so registered
and such Person is a Subsidiary, directly or indirectly, of more than one Person, the Common Stocks of two or more of which are and have been so registered, “Principal Party” shall
refer to whichever of such Persons is the issuer of the Common Stock having the
greatest aggregate market value; and (3) if the Common Stock of such Person is
not and has not been so registered and 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 (1) and (2) above shall
apply to each of the chains of ownership having an interest in such joint venture
as if such party were a Subsidiary of both or all of such joint venturers, and
the Principal Parties in each such chain shall bear the obligations set forth
in this Section 13 in the same ratio as their direct or indirect interests in
such Person bear to the total of such interests. 

            (c) The Company shall not consummate any Section 13 Event unless the Principal Party shall have a sufficient number of authorized shares of its Common Stock which have not been issued or reserved for
issuance to permit the exercise in full of the Rights in accordance with this Section 13 and unless prior thereto the Company and such Principal Party shall have executed and delivered to the Rights Agent a supplemental agreement confirming that the
requirements of Section 13(a) and Section 13(b) hereof shall promptly be performed in accordance with their terms and that such Section 13 Event shall not result in a default by the Principal Party under this Agreement as the same shall have been
assumed by the Principal Party pursuant to Section 13(a), Section 13(b) hereof and further providing that, as soon as practicable after the date of any such Section 13 Event, the Principal Party will: 

  27

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

  
              (ii)    use its best efforts to list or obtain quotation of (or continue the listing or quotation of) the Rights and the securities purchasable
  upon exercise of the Rights on a national securities exchange or by an automated quotation service; 
  

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

  
              (iv) use its best efforts to obtain waivers of any rights of first refusal or preemptive rights in respect of the shares of Common Stock of the
  Principal Party subject to purchase upon exercise of outstanding Rights. 
  

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

            (d) Notwithstanding anything in this Agreement to the contrary, Section 13 hereof shall not be applicable to a transaction described in subparagraph (x) or subparagraph (y) of Section 13(a) hereof if
(i) such transaction is a merger consummated with a Person or Persons (or a wholly owned Subsidiary of any such Person or Persons) who acquired shares of Common Stock of the Company pursuant to a Qualifying Tender Offer and (ii) the per share
consideration (in both amount and form) payable in such transaction is the same as the per share consideration (in both amount and form) paid to all holders of shares of Common Stock whose shares were purchased pursuant to such Qualifying Tender
Offer. Upon consummation of any such transaction contemplated by this Section 13(d), all Rights hereunder shall expire. 

  Section 14. Fractional Rights and Fractional Shares. 

            (a) The Company shall not be required to issue fractions of Rights, except prior to the Distribution Date as provided in Section 11(i) hereof, or to distribute Rights Certificates which evidence
fractional Rights. In lieu of any such fractional Rights, there shall be paid 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 market value of a whole Right. For purposes of this Section 14(a), 

  28

  the current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable. The closing price of the
Rights for any Trading Day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange or, if the Rights are not listed or admitted to trading on the New York Stock Exchange, as reported in the principal consolidated
transaction reporting system or the Nasdaq National Market with respect to securities listed on another principal national securities exchange or quoted by the Nasdaq National Market, respectively, or if the Rights are not listed or admitted to
trading on any national securities exchange or quoted by the Nasdaq National Market, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by The Nasdaq Stock Market
or such other quotation system then in use or, if on any such date the Rights are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Rights selected
by the Board. If on any such date no such market maker is making a market in the Rights, the fair value of the Rights on such date as determined in good faith by the Board, shall be used. 

            (b) The Company shall not be required to issue fractions of shares of Common Stock of the Company upon exercise of the Rights or to distribute certificates which evidence fractional shares of Common
Stock of the Company. In lieu of fractional shares of Common Stock of the Company, the Company may pay to the registered holders of Rights Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same
fraction of the current market value of one share of Common Stock of the Company. For purposes of this Section 14(b), the current market value of one share of Common Stock of the Company shall be the closing price of one share of Common Stock of the
Company, or if unavailable, the appropriate alternative price (in each case, as determined pursuant to Section 11(d) hereof) for the Trading Day immediately prior to the date of such exercise. 

            (c) The holder
  of a Right by the acceptance of that Right expressly waives such holder’s
  right to receive any fractional Rights or any fractional shares upon exercise
  of a Right, except as permitted by this Section 14. 

            Section 15. Rights of Action.
  All rights of action in respect of this Agreement, other than rights of action
  vested in the Rights Agent in Section 18 hereof, are vested in the respective
  registered holders of the Rights Certificates (and, prior to the Distribution
  Date, the registered holders of the Common Stock of the Company); and any registered
  holder of any Rights Certificate (or, prior to the Distribution Date, of the
  Common Stock of the Company), without the consent of the Rights Agent or of
  the holder of any other Rights Certificate (or, prior to the Distribution Date,
  of the Common Stock of the Company), may, in the holder’s own behalf and for the holder’s own benefit, enforce, and may institute and maintain, any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, the holder’s
  right to exercise the Rights evidenced by such Rights Certificate in the manner
  provided in such Rights 

  29

  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 shall be entitled to specific performance of the obligations hereunder and injunctive relief against actual or threatened violations of the obligations hereunder of any Person subject to this Agreement. 

            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 be transferable only in connection with the transfer of shares of Common Stock (or book-entry account) of the Company; 

            (b) after the Distribution Date, the Rights Certificates are transferable only on the registry books of the Rights Agent if surrendered at the principal office or offices of the Rights Agent
designated for such purposes, duly endorsed or accompanied by a proper instrument of transfer and with the appropriate forms and certificates contained therein duly executed; 

            (c) subject to Section 6(a) and Section 7(f) hereof, the Company and the Rights Agent may deem and treat the person in whose name a Rights Certificate (or, prior to the Distribution Date, the
associated certificate for Common Stock of the Company or, in the case of uncertificated shares of Common Stock, the book-entry account evidencing record ownership of such shares) is registered as the absolute owner thereof and of the Rights
evidenced thereby (notwithstanding any notations of ownership or writing on the Rights Certificate or the associated certificate for Common Stock of the Company 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 the last sentence of Section 7(e) hereof, shall be required to be affected by any notice to the contrary; and 

            (d) notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability to any holder of a Right or other Person as a result of its inability
to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, decree or ruling issued by a court of competent jurisdiction or by a governmental, regulatory or administrative agency or
commission, or by reason of 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 must use its
reasonable efforts to have any such order, decree or ruling lifted or otherwise overturned as soon as possible. 

            Section 17. Rights Certificate Holder Not Deemed a Shareholder. No holder, as such, of any Rights Certificate shall be entitled to vote,
receive dividends or be deemed for any purpose the holder of the number of shares of Common Stock of the Company or any other securities of the Company which may at any time be issuable upon

  30

  the exercise of the Rights represented thereby, nor shall 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 shareholder of the
Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting
shareholders (except as provided in Section 24 hereof), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Rights Certificate shall have been 

            Section 18. Concerning the Rights Agent. 

            (a) The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time, on demand of the Rights Agent, reimbursement for its
reasonable expenses and counsel fees and disbursements and other disbursements incurred in the administration and execution of this Agreement and the exercise and performance of its duties hereunder. The Company also agrees to indemnify the Rights
Agent for, and to hold it harmless against, any loss, liability, or expense, incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent, for anything done or omitted by the Rights Agent in connection with the
acceptance and administration of this Agreement, including the costs and expenses of defending against any claim of liability in the premises. 

            (b) The Rights Agent shall be protected and shall incur no liability for or in respect of any action taken, suffered or omitted by it in good faith in connection with its administration of this
Agreement in reliance upon any Rights Certificate or certificate for Common Stock of the Company or for other securities of the Company or upon any 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 to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper Person or Persons. 

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

            (a) Any corporation into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any corporation resulting from any merger or consolidation to which
the Rights Agent or any successor Rights Agent shall be a party, or any corporation succeeding to the corporate trust or stock transfer business of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this
Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto; provided, however, that such corporation would be eligible for appointment as a successor Rights Agent under the provisions of
Section 21 hereof. If at the time such successor Rights Agent shall succeed to the agency created by this Agreement, any of the Rights Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the
countersignature of a predecessor Rights Agent and deliver such Rights Certificates so countersigned; and if at that time any of the Rights Certificates shall not have been countersigned, any successor Rights Agent may countersign such Rights
Certificates 

  31

  either in the name of the predecessor or in the name of the successor Rights Agent; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement. 

            (b) If at any time the name of the Rights Agent shall be changed and at such time any of the Rights Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the
countersignature under its prior name and deliver Rights Certificates so countersigned; and if at that time any of the Rights Certificates shall not have been countersigned, the Rights Agent may countersign such Rights Certificates either in its
prior name or in its changed name; and in all such cases such Rights Certificates shall have the full force provided in 

            Section 20. Duties of Rights Agent. The Rights Agent undertakes the duties and obligations imposed by this Agreement upon the following terms
and conditions, by all of which the Company and the holders of Rights Certificates, by their acceptance thereof, shall be bound: 

            (a) The Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the opinion of such counsel shall be full and complete authorization and protection to the Rights
Agent as to any action taken or omitted by it in good faith and in accordance with such opinion. 

            (b) Whenever in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter (including without limitation the identity of any
Acquiring Person and the determination of Current Market Price) be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically
prescribed) may be deemed to be conclusively proved and established by a certificate signed by the Chairman of the Board, the President, any Vice President, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the
Company and delivered to the Rights Agent; and such certificate shall be full authorization to the Rights Agent for any action taken or suffered in good faith by it under the provisions of this Agreement in reliance upon such certificate. 

            (c) The Rights Agent shall be liable hereunder only for its own gross negligence, bad faith or willful misconduct; provided, however, that the Rights Agent shall not be liable for indirect, special,
consequential, or punitive damages. 

            (d) The Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in the Rights Certificates, nor shall it be required to verify the
same (except as to its countersignature on such Rights Certificates), but all such statements and recitals are and shall be deemed to have been made by the Company only. 

            (e) The Rights Agent shall not be under any responsibility in respect of the validity of this Agreement or the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in
respect of the validity or execution of any 

  32

  Rights Certificate (except its countersignature thereon); nor shall it be responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any Rights Certificate; nor shall it be responsible
for any adjustment required under the provisions of Section 11 or Section 13 hereof or responsible for the manner, method or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment (except
with respect to the exercise of Rights evidenced by Rights Certificates after receipt of a certificate describing any such adjustment); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or
reservation of any shares of Common Stock of the Company to be issued pursuant to this Agreement or any Rights Certificate or as to whether any shares of Common Stock of the Company will, when so issued, be validly authorized and issued, fully paid
and nonassessable. 

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

            (g) The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from the Chairman of the Board, the President, any Vice President,
the Secretary, any Assistant Secretary, the Treasurer or any Assistant Treasurer of the Company, and to apply to such officers for advice or instructions in connection with its duties, and it shall not be liable for any action taken or suffered to
be taken by it in good faith in accordance with instructions of any such officer. 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 by, or omission of, the Rights Agent under this Agreement and the date on or after which such action shall be taken or such omission shall be effective. The Rights Agent shall not be liable for any action taken 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 shall not be less than five Business Days after the date the Company actually receives such application, unless the
Company shall have consented in writing to an earlier date) unless, prior to taking any such action (or prior to the effective date in the case of an omission), the Rights Agent shall have received written instructions in response to such
application specifying the action to be taken or omitted. 

            (h) The Rights Agent and any shareholder, director, officer or employee of the Rights Agent may buy, sell or deal in any of the Rights or other securities of the Company, become pecuniarily interested
in any transaction in which the Company may be interested, contract with or lend money to the Company or otherwise act as fully and freely as though the Rights Agent were not Rights Agent under this Agreement. Nothing herein shall preclude the
Rights Agent from acting in any other capacity for the Company or for any other legal entity. 

            (i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorneys or agents, and the Rights Agent
shall not be answerable or accountable for any 

  33

  act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company resulting from any such act, default, neglect or misconduct; provided, however, reasonable care was exercised in the selection and
continued employment thereof. 

            (j) No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder (other
than internal costs incurred by the Rights Agent in providing services to the Company in the ordinary course of its business as Rights Agent) or in the exercise of its rights if there shall be reasonable grounds for believing that repayment of such
funds or adequate indemnification against such risk or liability is not reasonably assured to it. 

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

            Section 21. Change of Rights Agent.
  The Rights Agent or any successor Rights Agent may resign and be discharged
  from its duties under this Agreement upon 30 days’ notice in writing mailed to the Company and to each transfer agent of the Common Stock of the Company, by registered or certified mail and to the holders of the Rights Certificates, if any, by first-class mail. The
Company may remove the Rights Agent or any successor Rights Agent upon 30 days’ notice
in writing mailed to the Rights Agent or successor Rights Agent, as the case
may be, and to each transfer agent of the Common Stock of the Company, by registered
or certified mail and to the holders of the Rights Certificates, if any, by first-class
mail. If the Rights Agent shall resign or be removed or shall otherwise become
incapable of acting, the Company shall appoint a successor to the Rights Agent.
If the Company shall fail to make such appointment within a period of 30 days
after giving notice of such removal or after it has been notified in writing
of such resignation or incapacity by the resigning or incapacitated Rights Agent
or by the holder of a Rights Certificate (who shall, with such notice, submit
his Rights Certificate for inspection by the Company), then any registered holder
of any Rights Certificate may apply to any court of competent jurisdiction for
the appointment of a new Rights Agent. If no successor Rights Agent shall have
been appointed within 30 days from the effectiveness of such removal, resignation
or incapacity and no registered holder of any Rights Certificate has applied
pursuant to this Agreement for the appointment of a new Rights Agent, the Company
automatically shall be designated as successor Rights Agent. Any successor Rights
Agent appointed by the Company or by such a court shall be (a) a corporation
organized and doing business under the laws of the United States or of any state
of the United States, in good standing, which is authorized to do business as
a banking institution in such state, is authorized under such laws to exercise
corporate trust powers, is subject to supervision or examination by federal or
state authority and has at the time of its appointment as Rights Agent a combined
capital and surplus of at least $100,000,000 or (b) an Affiliate of a corporation
described in clause (a) of this sentence. After appointment, the successor Rights
Agent shall be vested with the same powers, 

  34

  rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time
held by it hereunder and shall execute and deliver, if applicable, any further assurance, conveyance, act or deed necessary for that purpose. Not later than the effective date of any such appointment, the Company shall file notice thereof in writing
with the predecessor Rights Agent and each transfer agent of the Common Stock of the Company and shall mail a notice thereof in writing to the registered holders of the Rights Certificates, if any. Failure to give any notice provided for in this
Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 

            Section 22. Issuance of New Rights Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights Certificates to the
contrary, 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 Purchase Price and the number or kind or class of shares or other
securities or property purchasable under the Rights Certificates made in accordance with the provisions of this Agreement. In addition, in connection with the issuance or sale of shares of Common Stock of the Company following the Distribution Date
and prior to the redemption or expiration of the Rights, the Company (a) shall, with respect to shares of Common Stock of the Company so issued or sold pursuant to the exercise of stock options or under any employee plan or arrangement or upon the
exercise, conversion or exchange of securities hereafter issued by the Company, and (b) 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 (i) no such Rights Certificate shall be issued if and to the extent that the Company shall be advised by counsel that such issuance would create a significant risk of material adverse tax
consequences to the Company or the Person to whom such Rights Certificate would be issued and (ii) no such Rights Certificate shall be issued if and to the extent that appropriate adjustment shall otherwise have been made in lieu of the issuance
thereof. 

            Section 23. Redemption and Termination. 

            (a) The Board
  may, at its option, at any time prior to the earlier of (i) the Close of Business
  on the tenth Business Day (or such specified or unspecified later date as may
  be determined by the Board before the Rights cease being redeemable) following
  the Stock Acquisition Date (or, if the Stock Acquisition Date shall have occurred
  prior to the Record Date, the Close of Business on the tenth Business Day following
  the Record Date) or (ii) the Final Expiration Date, direct the Company to,
  and if directed, the Company shall, redeem all but not less than all of the
  then outstanding Rights at a redemption price of $.00l per Right, as such amount
  may be appropriately adjusted to reflect any stock split, stock dividend or
  similar transaction occurring after the date hereof (such redemption price
  being hereinafter referred to as the “Redemption Price”). The redemption of the Rights by the Board may be made effective at such
time after the Board’s action to redeem the Rights on such basis and subject
to such conditions, as the Board in its sole and absolute discretion may establish.
The Company may, at its option,

  35

  pay the Redemption Price in shares of Common Stock of the Company (based on the Current Market Price of the Common Stock of the Company at the time of redemption), cash or any other form of consideration deemed appropriate by the
Board.
  Notwithstanding anything contained in this Agreement
  to the contrary, the Rights shall not be exercisable after the first occurrence
  of a Section 11(a)(ii) Event until such time as the Company’s right of
  redemption hereunder has expired. 

            (b) Without any further action and without any notice, the right to exercise the Rights will terminate effective at the time so designated by action of the Board ordering the redemption of the Rights
and the only right thereafter of the holders of Rights shall be to receive the Redemption Price. Promptly after the action of the Board directing the Company to make the redemption of the Rights, the Company shall give notice of such redemption to
the Rights Agent and the holders of the then outstanding Rights by mailing such notice to each record holder of the Common Stock of the Company at the address of such holder shown on the records of the Company. Any notice which is mailed in the
manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption will state the method by which the payment of the Redemption Price will be made. 

            Section 24. Notice of Certain Events. 

            (a) In case
  the Company shall propose, at any time after the Distribution Date, (i) to
  pay any dividend payable in stock of any class to the holders of Common Stock
  of the Company or to make any other distribution to the holders of Common Stock
  of the Company (other than a regular periodic cash dividend out of earnings
  or retained earnings of the Company), (ii) to offer to the holders of Common
  Stock of the Company rights or warrants to subscribe for or to purchase any
  additional shares of Common Stock of the Company or shares of stock of any
  class or any other securities, rights or options, (iii) to effect any reclassification
  of the Common Stock of the Company (other than a reclassification involving
  only the subdivision or split of outstanding shares of Common Stock of the
  Company), (iv) to effect any consolidation, combination or merger into or with
  any other Person or Persons (other than a Subsidiary of the Company in a transaction
  which complies with Section 11(o) hereof), or to effect any sale or other transfer
  (or to permit one or more of its Subsidiaries to effect any sale or other transfer),
  in one transaction or a series of related transactions, of more than 50% of
  the assets or earning power of the Company and its Subsidiaries (taken as a
  whole) to any other Person or Persons (other than the Company or any of its
  Subsidiaries in one or more transactions each of which complies with Section
  11(o) hereof) or (v) to effect the liquidation, dissolution or winding up of
  the Company, then, in each such case, the Company shall give to each holder
  of a Rights Certificate, to the extent feasible and in accordance with Section
  25 hereof, a notice of such proposed action which shall specify the record
  date for the purposes of such stock dividend, distribution of rights or warrants,
  or the date on which such reclassification, consolidation, combination, merger,
  sale, transfer, liquidation, dissolution or winding up is to take place and
  the date of participation therein by the holders of the shares of Common Stock
  of the Company, if any such date is to be fixed, and such notice shall be so
  given in the case of any action covered by clause (i) or (ii) above at least
  20 days prior to the record date for determining

  36

  holders of the shares of Common Stock of the Company for purposes of such action, and in the case of any such other action, at least 20 days prior to the date of the taking of such proposed action or the date of participation
therein by the holders of the shares of Common Stock of the Company, whichever shall be the earlier. 

            (b) In case a Section 11(a)(ii) Event shall occur, then (i) the Company shall as soon as practicable thereafter give to each holder of a Rights Certificate, to the extent feasible in accordance with
Section 25 hereof, a notice of the occurrence of such event which notice shall specify the event and the consequences of the event to holders of Rights under Section 11(a)(ii) hereof, and (ii) all references in the preceding paragraph to Common
Stock of the Company shall be deemed thereafter to refer, if appropriate, to other securities. 

            (c) The failure of the Company to give any notice provided for in this Section 24, or any defect therein, shall not (i) relieve the Company of any of its other obligations under this Agreement or (ii)
affect the legality or validity of the action for which notice was hereby required. 

            Section 25. 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 shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows: 

  
    MCI, Inc. 
    

    22001 Loudoun County Parkway 

    Ashburn, Virginia 20147 

    Attention: Chief Executive Officer 
  

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

  
    The Bank of New York 

    101 Barclay Street 

    New York, NY 10286 

    Attn: Stock Transfer 
  

            Notices or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Rights Certificate (or, if prior to the Distribution Date, to the holder of
any certificate representing shares of Common Stock of the Company) shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books of the
Company. 

  37

            Section 26. Supplements and Amendments. For so long as the Rights are then redeemable and subject to the penultimate sentence of this Section
26, the Company and the Rights Agent shall, if the Board so directs, supplement or amend any provision of this Agreement without the approval of any holders of shares of Common Stock; provided, however, that
the Board may not extend the Final Expiration Date without the approval by stockholders
of the Company by a vote of the majority of the shares present and entitled to
vote at a meeting duly called and held to consider such matter. At any time when
the Rights are not then redeemable and subject to the penultimate sentence of
this Section 26, the Company and the Rights Agent shall, if the Board so directs,
supplement or amend this Agreement without the approval of any holders of Rights
Certificates in order (i) to cure any ambiguity, (ii) to correct or supplement
any provision contained herein which may be defective or inconsistent with any
other provisions herein, (iii) to shorten or lengthen any time period hereunder
or (iv) to change or supplement the provisions hereunder in any manner which
the Company may deem necessary or desirable and which shall not adversely affect
the interests of the holders of Rights Certificates (other than an Acquiring
Person or an Associate or Affiliate of an Acquiring Person); provided, that this
Agreement may not be supplemented or amended to lengthen, pursuant to clause
(iii) of this sentence, (A) a time period relating to when the Rights may be
redeemed or to modify the ability (or inability) of the Board to redeem the Rights,
in either case at such time as the Rights are not then redeemable or (B) any
other time period unless such lengthening is for the purpose of protecting, enhancing
or clarifying the rights of, or the benefits to, the holders of Rights (other
than an Acquiring Person or an Associate or Affiliate of an Acquiring Person).
Upon the delivery of a certificate from an appropriate officer of the Company
which states that the proposed supplement or amendment is in compliance with
the terms of this Section 26, the Rights Agent shall execute such supplement
or amendment. Notwithstanding anything contained in this Agreement to the contrary,
no supplement or amendment shall be made which changes the redemption price of
the Rights. Prior to the Distribution Date, the interests of the holders of Rights
shall be deemed coincident with the interests of the holders of Common Stock
of the Company. 

            Section 27. Successors. All the covenants and provisions of this 
  Agreement by or for the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective successors and assigns hereunder. 

            Section 28. Determinations and Actions by the Board, etc. For all purposes of this Agreement, any calculation of the number of shares of
Common Stock of the Company outstanding at any particular time, including for purposes of determining the particular percentage of such outstanding shares of Common Stock of the Company of which any Person is the Beneficial Owner, shall be made in
accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange Act. The Board shall have the exclusive power and authority to administer this 
  Agreement and to exercise all rights and powers specifically granted to the Board or to the Company, or as may be necessary or advisable in the administration of this Agreement, including without limitation 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 without limitation a 

  38

  determination to redeem or not redeem the Rights or to amend this Agreement). All such actions, calculations, interpretations and determinations (including without limitation for purposes of clause (y) below, all omissions with
respect to the foregoing) which are done or made by the Board or the Company in good faith, shall (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all other parties and (y) not subject the Board to
any liability to the holders of the Rights or otherwise. 

            Section 29. Benefits of this Agreement. Nothing in this Agreement shall be construed to give to any Person other than the Company, the Rights
Agent and the registered holders of the Rights Certificates (and, prior to the Distribution Date, registered holders of the Common Stock of the Company) any legal or equitable right, remedy or claim under this Agreement, but this Agreement shall be
for the sole and exclusive benefit of the Company, the Rights Agent and the registered holders of the Rights Certificates (and, prior to the Distribution Date, registered holders of the Common Stock of the Company). 

            Section 30. Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated; provided,
however, that notwithstanding anything in this Agreement to the contrary, 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, the right of redemption set forth in Section 23 hereof shall be reinstated and shall not expire until the Close of
Business on the tenth Business Day following the date of such determination by the Board. Without limiting the foregoing, if any provision of this Agreement requiring that a determination be made by the Board is held by a court of competent
jurisdiction or other authority to be invalid, void or unenforceable, such determination shall then be made by the entire Board in accordance with applicable law and the articles of incorporation and bylaws of the Company, each as then in effect.
  

            Section 31. Governing Law. This Agreement, each Right and each Rights Certificate issued hereunder shall be deemed to be a contract made
under seal under the laws of the State of Delaware, and for all purposes this Agreement shall 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 the
State of Delaware; provided, however, that the rights, obligations and duties of the Rights Agent hereunder shall be governed and construed in accordance with the laws of the State of Delaware. 

            Section 32. Counterparts. This Agreement may be executed in any number of counterparts, and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 

  39

            Section 33. Descriptive Headings. Descriptive headings of the several Sections of this Agreement are inserted for convenience only and shall
not control or affect the meaning or construction of any of the provisions hereof. 

  40

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

	 	MCI, INC. 

     

       By /s/ Robert T. Blakely            

        Name: Robert T. Blakely

      Title:    Chief Financial Officer  

       The Bank of New York, 

      as Rights Agent 

       

     By /s/ Jeffrey D. Grosse             

        Name: Jeffrey D. Grosse
        

    Title:    Vice President 

 

  41

  Exhibit A

[Form of Rights Certificate]

	Certificate No. R-	_________Rights 

            NOT EXERCISABLE AFTER THE 2007 ANNUAL MEETING OF STOCKHOLDERS OF THE COMPANY, SUBJECT TO EXTENSION, EXPIRATION OR EARLIER REDEMPTION PURSUANT TO THE RIGHTS AGREEMENT. THE RIGHTS ARE SUBJECT TO
REDEMPTION, AT THE OPTION OF THE COMPANY, AT $.00l PER RIGHT AS SET FORTH IN THE RIGHTS AGREEMENT. THE RIGHTS EVIDENCED BY THIS CERTIFICATE SHALL NOT BE EXERCISABLE, AND SHALL BE VOID SO LONG AS HELD, BY A HOLDER IN ANY 
  JURISDICTION WHERE THE REQUISITE QUALIFICATION FOR THE ISSUANCE TO SUCH HOLDER, OR THE EXERCISE BY SUCH HOLDER, OF THE RIGHTS IN SUCH JURISDICTION SHALL NOT HAVE BEEN OBTAINED OR BE 
  OBTAINABLE. UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN ASSOCIATE OR AFFILIATE 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 IS, WAS OR BECAME AN ACQUIRING PERSON OR AN ASSOCIATE OR AFFILIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED
IN THE 
  RENEWED RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(E) OF SUCH AGREEMENT.] (1) 

  ___________

  (1)   The portion of the legend in
  brackets shall be inserted only if applicable, shall be modified to apply to
  an Acquiring Person, as applicable, and shall replace the preceding sentence. 

  RIGHTS CERTIFICATE 

  MCI, 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 Rights Agreement, dated as of April 20, 2004,
  as amended, restated, renewed or extended from time to time (the “Rights Agreement”), between MCI, Inc., a Delaware corporation (the “Company”), and The Bank of New York (the
“Rights Agent”), to purchase from the Company at any time prior to 5:00 P.M., eastern standard time, on the date of the 2007 annual meeting of stockholders of the Company subject to extension, expiration or earlier redemption pursuant to
the Rights Agreement at the office or offices of the Rights Agent, or its successors as Rights Agent, designated for such purpose, one fully paid, nonassessable share of common stock, par value $.01 per share, of the Company (the “Common
Stock”), at a purchase price of $75.00 per share (the “Purchase Price”),
upon presentation and surrender of this Rights Certificate with the Form of Election
to Purchase and included Certificate duly completed and executed. The number
of Rights evidenced by this Rights Certificate (and the number of shares of Common
Stock which may be purchased upon exercise thereof) set forth above, and the
Purchase Price set forth above, are the number and Purchase Price as of April
30, 2004 based on the Common Stock as constituted at such date. 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 shares of Common Stock will be issued. The holder of the Right evidenced
hereby consents and agrees that, subject to the terms of the Rights Agreement,
the Company and the Rights Agent may deem and treat the person in whose name
this Rights Certificate is registered as the absolute owner hereof and of the
Rights evidenced hereby (notwithstanding any notations of ownership or writing
on this Rights Certificate made by anyone other than the Company or the Rights
Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent
shall be required to be affected by any notice to the contrary. 

            As more fully set forth in the Rights Agreement, from and after the first occurrence of a Section 11(a)(ii) Event (as such term is defined in the Rights Agreement), if the Rights evidenced by this
Rights Certificate are beneficially owned by (i) an Acquiring Person or an Associate or Affiliate of an Acquiring Person (as such terms are defined in the Rights Agreement), (ii) a transferee of such Acquiring Person (or of any such Associate or
Affiliate), or (iii) under certain circumstances specified in the Rights Agreement, a transferee of such Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with such Acquiring Person becoming
such, such Rights shall become null and void without any further action, and no holder hereof shall have any right with respect to such Rights whether under the Rights Agreement or otherwise. 

            As provided in the Rights Agreement, the Purchase Price and the number and kind of shares of Common Stock or other securities, which may be purchased upon the exercise of the Rights evidenced by this
Rights Certificate are subject to modification 

  and adjustment upon the happening of certain events, including Triggering Events (as defined in the Rights Agreement). 

            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. Reference is also made to the Rights Agreement for definitions of capitalized terms
used and not defined herein. Copies of the Rights Agreement are on file at the principal office of the Rights Agent and are also available upon written request to the Rights Agent. 

            This Rights Certificate, with or without other Rights Certificates, upon surrender at the office or offices 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 aggregate number of shares of Common Stock as the Rights evidenced by the Rights Certificate or Rights Certificates surrendered shall
have entitled such holder to purchase. If this Rights Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another Rights Certificate or Rights Certificates for the number of whole Rights not
exercised. 

            Subject to
  the provisions of the Rights Agreement, the Board may, at its option, at any
  time prior to the earlier of (i) the close of business on the tenth business
  day (or such specified or unspecified later date as may be determined by the
  Board before the Rights cease being redeemable) following the first date of
  public announcement by the Company or an Acquiring Person that an Acquiring
  Person has become such (the “Stock
Acquisition Date”) (or, if the Stock Acquisition Date shall have occurred prior to the record date, the close of business on the tenth business day following the record date) or (ii) the Final Expiration Date (as defined in the Rights
Agreement), direct the Company to, and if directed, the Company shall, redeem all but not less than all of the then outstanding Rights evidenced by this Certificate at a redemption price of $.00l per Right, as such amount may be appropriately
adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (the “Redemption Price”). 

            If the Company so determines, no fractional shares of Common Stock will be issued upon the exercise of any Right or Rights evidenced hereby, but in lieu thereof, a cash payment will be made, as
provided in the Rights Agreement. 

            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 shares of Common Stock or of any other securities of the
Company which may at any time be issuable on the exercise hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a shareholder of the Company or any right
to vote for the election of directors or upon any matter submitted to 

  2

  shareholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting shareholders (except as 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 as provided in 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. 

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

  Dated as of _____________, _____

	Attest: 	MCI, INC.  
	 	 
	By _______________________

                       Secretary
	  By _______________________

                       Title:

  

Countersigned:    

  The Bank of New York, 

  as Rights Agent 

  By                                          _________________________

     Authorized
Signature 

 

3 

  [Form of Reverse Side of Rights Certificate] 

  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 herein, and
    does hereby irrevocably constitute and appoint Attorney, to transfer the
    within Rights Certificate on the books of the within-named Company, with
    full power of substitution. 

    

	Dated: _________________ , ____ 	

    Signature

  Signature Guaranteed: 

  Certificate 

  The undersigned hereby certifies by checking the appropriate boxes that: 

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

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

	Dated: _________________ , ____ 	

    Signature

Signature Guaranteed: 

  NOTICE 

            The signatures to the foregoing Assignment and Certificate must correspond to the name as written upon the face of this Rights Certificate in every particular, without alteration or enlargement or any
change whatsoever. 

  FORM OF ELECTION TO PURCHASE 

  (To be executed if holder desires to exercise Rights 

  represented by the Rights Certificate.) 

  To: MCI, Inc. 

            The
  undersigned hereby irrevocably elects to exercise _____________ Rights represented
  by this Rights Certificate to purchase the shares of Common Stock issuable
  upon the exercise of the  Rights (or such other securities of the Company or
  of any other Person which may be issuable or such other assets which may be
  deliverable upon the exercise of the Rights) and requests that certificates
  for any such shares or securities 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 the Rights evidenced by this Rights Certificate, a new Rights Certificate for the balance 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 Guaranteed: 

  

  
  
  

  
  
    Certificate 
  

  
              The undersigned hereby certifies by checking the appropriate boxes that: 
  

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

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

	Dated: _________________ , ____ 	

        Signature

   Signature Guaranteed: 

  NOTICE 
  

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

  

  
  
  

  
    TABLE OF CONTENTS
    

	 	 	Page	 
	 	 	
	 
	Section 1.	Certain Definitions	1	 
	Section 2.	Appointment of Rights Agent	8	 
	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	12	 
	Section 7.	Exercise of Rights; Purchase Price; Expiration Date of Rights	13	 
	Section 8.	Cancellation and Destruction of Rights Certificates	15	 
	Section 9.	Reservation and Availability of Capital Stock	15	 
	Section 10.	Record Date for Securities Issued Upon Exercise	17	 
	Section 11.	Adjustment of Purchase Price,
    Number and Kind of Shares or Number of Rights	17	 
	Section 12.	Certificate of Adjusted Purchase Price or Number of Shares	25	 
	Section 13.	Consolidation, Merger or Sale
    or Transfer of Assets or Earning Power	25	 
	Section 14.	Fractional Rights and Fractional Shares	28	 
	Section 15.	Rights of Action	29	 
	Section 16.	Agreement of Rights Holders	29	 
	Section 17.	Rights Certificate Holder Not Deemed a Shareholder	30	 
	Section 18.	Concerning the Rights Agent	30	 
	Section 19.	Merger or Consolidation or Change of Name of Rights Agent	31	 
	Section 20.	Duties of Rights Agent	31	 
	Section 21.	Change of Rights Agent	34	 
	Section 22.	Issuance of New Rights Certificates	34	 
	Section 23.	Redemption and Termination	35	 
	Section 24.	Notice of Certain Events	36	 
	Section 25.	Notices	37	 
	Section 26.	Supplements and Amendments	37	 
	Section 27.	Successors	38	 
	Section 28.	Determinations and Actions by the Board, etc.	38	 
	Section 29.	Benefits of this Agreement	38	 
	Section 30.	Severability	39	 

      

  

  
  
  

  
    
      TABLE OF CONTENTS
    

	 	 	Page	 
	 	 	
	 
	 	 	 	 
	Section 31.	Governing Law	39	 
	Section 32.	Counterparts	39	 
	Section 33.	Descriptive Headings	39	 
	 	 	 	 
	Exhibit A - Form of Rights Certificate                     B-l	 	 

  
    2

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