Document:

Exhibit
10.2

 

August 31, 2007

VIA HAND DELIVERY

Don
M. Hardison

99 Bridge Street

New Castle, NH 03854

Re: Separation Agreement and Release

Dear
Don:

You
have advised the Board of Directors of EXACT Sciences Corporation (hereinafter
the “Company”) of your intention to resign from your position as Chief
Executive Officer of the Company effective August 31, 2007.  The purpose of this agreement (the “Agreement”)
is to set forth the terms of our understanding related to your resignation.

1.             Resignation Date:

(a)           Your voluntary resignation from the
Company’s employment is effective as of midnight August 31, 2007 (the “Resignation
Date”).  You further confirm that you
have resigned from any and all other positions that you hold with the Company
as an officer, director or otherwise effective on the Resignation Date.  You also confirm that you have resigned from
any and all positions that you hold with any affiliate of the Company,
including, without limitation, any employee benefit plan, effective on the
Resignation Date.

(b)       As of the Resignation
Date, your salary will cease, and any entitlement you have or might have under
a Company provided benefit plan, program or practice will terminate, except as
required by federal or state law.

(c)       The Company will pay you for all accrued but unused vacation
time as of the Resignation Date, less taxes and withholding.

 

2.             Treatment of
Stock Options:

You
acknowledge and agree that columns one through three of the following chart
accurately identify the general terms of the agreements between you and the
Company for options to purchase shares of the Company’s common stock pursuant
to the terms of the Company’s 2000
Stock Option and Incentive Plan (the “Plan”), that you have entered into
during the course of your employment relationship with the Company, all of
which shall collectively be referred to as the “Options Agreements”:

	
  (1)

  Date of

  Option

  	
   

  	
  (2)

  # of

  Unexercised

  Shares

  	
   

  	
  (3)

  Exercise

  Price

  	
   

  	
  (4)

  Shares Vested

  as of 8/31/07

  	
   

  	
  (5)

  Shares to be

  Vested as of

  8/31/09

  	
   

  	
  (6)

  Accelerated

  Shares

  	
   

  
	
  5/1/00

  	
   

  	
  305,560

  	
   

  	
  $

  	
  2.05

  	
   

  	
  305,560

  	
   

  	
  305,560

  	
   

  	
   

  	
   

  
	
  1/31/01

  	
   

  	
  10,000

  	
   

  	
  $

  	
  14.00

  	
   

  	
  10,000

  	
   

  	
  10,000

  	
   

  	
   

  	
   

  
	
  6/6/2001

  	
   

  	
  5,000

  	
   

  	
  $

  	
  10.74

  	
   

  	
  5,000

  	
   

  	
  5,000

  	
   

  	
   

  	
   

  
	
  2/11/02

  	
   

  	
  135,000

  	
   

  	
  $

  	
  7.93

  	
   

  	
  135,000

  	
   

  	
  135,000

  	
   

  	
   

  	
   

  
	
  2/12/03

  	
   

  	
  100,000

  	
   

  	
  $

  	
  6.78

  	
   

  	
  100,000

  	
   

  	
  100,000

  	
   

  	
   

  	
   

  
	
  2/11/04

  	
   

  	
  90,000

  	
   

  	
  $

  	
  7.72

  	
   

  	
  90,000

  	
   

  	
  90,000

  	
   

  	
   

  	
   

  
	
  2/17/05

  	
   

  	
  90,000

  	
   

  	
  $

  	
  4.22

  	
   

  	
  56,249

  	
   

  	
  90,000

  	
   

  	
  33,751

  	
   

  
	
  2/16/06

  	
   

  	
  165,000

  	
   

  	
  $

  	
  2.61

  	
   

  	
  82,500

  	
   

  	
  165,000

  	
   

  	
  82,500

  	
   

  
	
  2/15/07

  	
   

  	
  150,000

  	
   

  	
  $

  	
  2.77

  	
   

  	
  25,000

  	
   

  	
  125,000

  	
   

  	
  100,000

  	
   

  
	
  Totals

  	
   

  	
  1,050,560

  	
   

  	
   

  	
   

  	
  809,309

  	
   

  	
  1,025,560

  	
   

  	
  216,251

  	
   

  

 

Notwithstanding
any contrary provisions that may be contained in either the Plan or the
respective Options Agreements, you and the Company agree as follows:

(a) as of the Resignation Date, you will be
considered to have vested in that number of shares in which you would have vested
had your employment with the Company continued through August 31, 2009, as set
forth in column 5 on the above chart;

(b)
you may exercise any stock options in which you are vested as of the
Resignation Date (as set forth in column 5 above) until August 31, 2009,
provided that, at no time between the Resignation Date and August 31, 2009 may
you sell or otherwise dispose of any shares issued upon exercise of the
foregoing stock options whose vesting schedule has been accelerated

 2
 

 

as a result of Section 2(a) of this Agreement (the “Accelerated
Shares”), as identified in column 6 of the chart above; and

 (c) you acknowledge and agree that, as a
result of the foregoing modifications, any and all stock options set forth
above that are intended to qualify as incentive stock options under Section
422A of the Internal Revenue Code of 1986 shall be treated for federal income
tax purposes as non-qualified stock options rather than incentive stock
options.

3.             Tax Treatment:

The Company shall undertake
to make deductions, withholdings and tax reports with respect to benefits under
this Agreement to the extent that it reasonably and in good faith determines
that it is required to make such deductions, withholdings and tax reports.

4.             Release:

In consideration for, among
other terms, the benefits described in Sections 2(a) and 2(b), to which you
acknowledge you would otherwise not be entitled, you voluntarily release and
forever discharge the Company, its affiliated and related entities, its and
their respective predecessors, successors and assigns, its and their respective
employee benefit plans and fiduciaries of such plans, and the current and
former officers, directors, shareholders, employees, attorneys, accountants and
agents of each of the foregoing in their official and personal capacities
(collectively referred to as the “Releasees”) generally from all claims,
demands, debts, damages and liabilities of every name and nature, known or
unknown (“Claims”) that, as of the date when you sign this Agreement,
you have, ever had, now claim to have or ever claimed to have had against any
or all of the Releasees.  This release
includes, without limitation, all Claims:

·                  relating to your employment by and
resignation of employment with the Company;

·                  of wrongful discharge;

·                  of breach of contract (including, but in no
way limited to that certain employment agreement between you and the Company
made as of June 27, 2006 (the “Employment Agreement”);

·                  of retaliation or discrimination under
federal, state or local law (including, without limitation, Claims of age
discrimination or retaliation under the Age Discrimination in Employment Act,
Claims of disability discrimination or retaliation under the Americans with
Disabilities Act, and Claims of discrimination or retaliation under Title VII
of the Civil Rights Act of 1964);

·                  under any other federal or state statute;

·                  of defamation or other torts;

·                  of violation of public policy;

·                  for wages, bonuses, incentive compensation,
stock, stock options, vacation pay or any other compensation or benefits; and

·                  for damages or other remedies of any sort,
including, without limitation, compensatory damages, punitive damages,
injunctive relief and attorney’s fees;

 3
 

 

provided, however, that this release shall not affect your vested rights under
the Company’s Section 401(k) plan, the Options Agreements (as modified
herein) or your rights under this Agreement.

You agree that you shall not
seek or accept damages of any nature, other equitable or legal remedies for
your own benefit, attorney’s fees, or costs from any of the Releasees with
respect to any Claim released by this Agreement.  As a material inducement to the Company to
enter into this Agreement, you represent that you have not assigned to any third
party and you have not filed with any agency or court any Claim released by
this Agreement.

5.             Accord and
Satisfaction:

The
payments and benefits set forth above in Sections 1 and 2 shall be
complete and unconditional payment, settlement, accord and/or satisfaction with
respect to all obligations and liabilities of the Company to you, including,
without limitation, all claims for back wages, salary, vacation pay, draws,
incentive pay, bonuses, stock and stock options, commissions, severance pay,
any and all other forms of compensation or benefits, attorney’s fees, or other
costs or sums.

6.             Waiver of Rights
and Claims Under the Age Discrimination and Employment Act of 1967:

Since you are 40 years of age or older, you are being informed
with respect to your rights under the Age Discrimination in Employment Act of
1967 (ADEA, 29 U.S.C. Section 621 et. seq.)
and you agree that:

(a)           in
consideration for the amounts and benefits described in Sections 2(a)
and 2(b) of this Agreement, which you are not otherwise entitled to
receive, you specifically and voluntarily waive any rights and/or claims under
the ADEA you might have against the Company to the extent such rights and/or
claims arose prior to or on the date this Agreement was executed;

(b)           you understand that rights or claims
under the ADEA which may arise after the date this Agreement is executed are
not waived by you;

(c)           you
are advised to consider the terms of this Agreement carefully and consult with
or seek advice from an attorney of your choice prior to executing this
Agreement;

(d)           you
acknowledge that you were informed and understand that you have twenty-one (21)
days within which to consider this Agreement;

(e)           you
have carefully read and fully understand all of the provisions of this
Agreement, and you knowingly and voluntarily agree to all of the terms set
forth in this Agreement;

(f)            in
entering into this Agreement you are not relying on any representation, promise
or inducement made by the Company or its attorneys with the exception of those
promises described in this document; and

 4
 

 

(g)           the
21-day review period will not be affected or extended by any revisions which
might be made to this Agreement.

7.             Company Files, Documents and Other Property:

On the Resignation Date, you will return to the Company all Company
property and materials, including but not limited to, personal computers,
laptops, fax machines, scanners, copiers, cellular phones, Company credit cards
and telephone charge cards, manuals, building keys and passes, courtesy parking
passes, diskettes, intangible information stored on diskettes, software
programs and data compiled with the use of those programs, software passwords
or codes, tangible copies of trade secrets and confidential information, sales
forecasts, names and addresses of Company customers and potential customers,
customer lists, customer contacts, sales information, sales forecasts,
memoranda, sales brochures, business or marketing plans, reports, projections,
and any and all other information or property previously or currently held or
used by you that is or was related to your employment with the Company (“Company
Property”).  You agree that in the event
that you discover any other Company Property in your possession after the
Resignation Date, you will immediately return such materials to the Company.

8.                                      Continuing Obligations Under Your
Confidential Information, Noncompetition and Cooperation Agreements:

You acknowledge and agree
that, on or about May 5, 2006, you and the Company entered in a Noncompetition
Agreement (the “Noncompetition Agreement”) and an Employee Non-Disclosure and
Developments Agreement  (the “Nondisclosure
Agreement”).  You understand and agree
that, notwithstanding your resignation of your employment, your obligations
under the Noncompetition Agreement and Non-Disclosure Agreement shall continue
in full force and effect in accordance with the express terms of those
agreements.

9.             Future Conduct:

(a)           Nondisparagement:  You agree not to make disparaging, critical
or otherwise detrimental comments to any person or entity concerning the Company,
its officers, directors or employees; the products, services or programs
provided or to be provided by the Company; the business affairs or the
financial condition of the Company; or the circumstances surrounding your
employment and/or resignation of employment from the Company.

(b)           Confidentiality
of this Agreement: You shall maintain confidentiality concerning the terms
of this Agreement.  Except as required
pursuant to legal process, you will not discuss the same with anyone except
your immediate family and accountants or attorneys when such disclosure is
necessary for the accountants or attorneys to render professional
services.  Prior to any such disclosure
that you may make, you shall secure from your immediate family, attorney or
accountant their agreement to maintain the confidentiality of such
matters.  Nothing herein shall prohibit
or bar you from providing truthful testimony in any legal proceeding or in
communicating with any governmental agency or representative or from making any
truthful disclosure required, authorized or permitted under law; provided
however, that in providing such testimony or making such disclosures or
communications, you will use your best efforts to ensure that this Section is
complied with to the maximum extent possible.

 5
 

 

10.                               Information Concerning Actual,
Potential or Alleged Financial Irregularities 

You represent that you are
not aware of any actual, potential or alleged financial irregularities
concerning the Company.

11.          Future Cooperation

You agree to cooperate reasonably
with the Company (including its outside counsel) in connection with the
contemplation, prosecution and defense of all phases of existing, past and
future litigation about which the Company believes you may have knowledge or
information.  You further agree to make
yourself available at mutually convenient times during and outside of regular
business hours as reasonably deemed necessary by the Company’s counsel.  The Company shall not utilize this Section 10
to require you to make yourself available to an extent that would unreasonably
interfere with full-time employment responsibilities that you may have.  You agree to appear without the necessity of
a subpoena to testify truthfully in any legal proceedings in which the Company
calls you as a witness.  The Company
shall also reimburse you for any pre-approved reasonable business travel
expenses that you incur on the Company’s behalf as a result of your litigation
cooperation services, after receipt of appropriate documentation consistent
with the Company’s business expense reimbursement policy.  You further agree that you shall not
voluntarily provide information to or otherwise cooperate with any individual
or entity that is contemplating or pursuing litigation against any of the
Releasees or that is undertaking any investigation or review of any of the
Releasees’ activities or practices; provided,
however, that you may participate in or otherwise assist in any investigation
or inquiry conducted by the EEOC or the Massachusetts Commission Against Discrimination.  Notwithstanding the foregoing, this provision
shall not apply to the extent that your breach of this Agreement consists of
initiating a legal action in which you contend that the release set forth in Section
4 is invalid, in whole or in part, due to the provisions of 29 U.S.C. §626(f).

12.          Representations
and Governing Law:

(a)           This Agreement sets forth the
complete and sole agreement between the parties and supersedes any and all
other agreements or understandings, whether oral or written (including, but not
limited to the Employment Agreement), except the Noncompetition Agreement and
the Nondisclosure Agreements discussed in Section 7, which shall remain in full
force and effect.  This Agreement may not
be changed, amended, modified, altered or rescinded except upon the express
written consent of both the Chairman of the Company’s Board of Directors and
you. By signing this Agreement, you agree that you will comply with the terms
of such agreement. You further acknowledge and agree that if you violate any of
the terms of this Agreement, the Company shall have the right to rescind the
benefits afforded to you pursuant to Sections 2(a) and 2(b) above.

(b)       If
any provision of this Agreement, or part thereof, is held invalid, void or
voidable as against public policy or otherwise, the invalidity shall not affect
other provisions, or parts thereof, which may be given effect without the
invalid provision or part.  To this
extent, the provisions, and parts thereof, of this Agreement are declared to be
severable.  Any waiver of any 

 6
 

 

provision of this Agreement shall not constitute a
waiver of any other provision of this Agreement unless expressly so indicated
otherwise.

(c)       This Agreement shall be
deemed to be made and entered into in the Commonwealth of Massachusetts.  This Agreement and any claims arising out of
this Agreement (or any other claims arising out of the relationship between the
parties) shall be governed by and construed in accordance with the laws of the
Commonwealth of Massachusetts and shall in all respects be interpreted,
enforced and governed under the internal and domestic laws of Massachusetts,
without giving effect to the principles of conflicts of laws of such
state.  Any claims or legal actions by
one party against the other shall be commenced and maintained in state or
federal court located in Massachusetts, and you hereby submit to the
jurisdiction and venue of any such court.

(d)       This Agreement cannot be
assigned by you and shall inure to the benefit of the Company’s successors and
assigns.

13.          Effective Date:

After signing this letter, you may revoke this Agreement for a period
of seven days following said execution by written notice to the undersigned
which notice must be received by the undersigned on or prior to 5:00 p.m. on
such seventh day.  The Agreement shall
not become effective or enforceable until this revocation period has expired.

If
this letter correctly states the understanding we have reached, please indicate
your acceptance by countersigning the enclosed copy and returning it to me.

Very
truly yours,

/s/ Charles R. Carelli, Jr.                                      

Charles
R. Carelli, Jr.

Chief Financial Officer

I
REPRESENT THAT I HAVE READ THE FOREGOING AGREEMENT, THAT I FULLY UNDERSTAND THE
TERMS AND CONDITIONS OF SUCH AGREEMENT AND THAT I AM KNOWINGLY AND VOLUNTARILY
EXECUTING THE SAME.  IN ENTERING INTO
THIS AGREEMENT, I DO NOT RELY ON ANY REPRESENTATION, PROMISE OR INDUCEMENT MADE
BY THE COMPANY OR ITS ATTORNEYS WITH THE EXCEPTION OF THE CONSIDERATION DESCRIBED
IN THIS DOCUMENT.

ACCEPTED:

/s/ Don Hardison                                                 

Don
Hardison

Date: August 31, 2007

 7Exhibit
4.1

JOS.
A. BANK CLOTHIERS, INC.

and

CONTINENTAL STOCK TRANSFER & TRUST COMPANY

as Rights Agent

RIGHTS AGREEMENT

Dated as of September 6, 2007

 

 

TABLE OF
CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.

  	
   

  	
  Certain Definitions.

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
   

  	
  Appointment Of Rights
  Agent.

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
   

  	
  Issue Of Right
  Certificates.

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
   

  	
  Form Of Right Certificates.

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
   

  	
  Countersignature And
  Registration.

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
   

  	
  Transfer, Split Up,
  Combination And Exchange Of Right 

  Certificates; Mutilated, Destroyed, Lost Or Stolen Right 

  Certificates.

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
   

  	
  Exercise Of Rights;
  Purchase Price; Expiration Date Of Rights.

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
   

  	
  Cancellation And
  Destruction Of Right Certificates.

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
   

  	
  Availability Of Preferred
  Shares.

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
   

  	
  Preferred Shares Record
  Date.

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
   

  	
  Adjustment Of Purchase Price,
  Number Of Shares Or Number Of Rights.

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
   

  	
  Certificate Of Adjusted
  Purchase Price Or Number Of Shares.

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 13.

  	
   

  	
  Consolidation, Merger Or
  Sale Or Transfer Of Assets Or Earning Power.

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 14.

  	
   

  	
  Fractional Rights And
  Fractional Shares.

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 15.

  	
   

  	
  Rights Of Action.

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 16.

  	
   

  	
  Agreement Of Right Holders.

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 17.

  	
   

  	
  Right Certificate Holder
  Not Deemed A Stockholder.

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 18.

  	
   

  	
  Concerning The Rights
  Agent.

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 19.

  	
   

  	
  Merger Or Consolidation Or
  Change Of Name Of Rights Agent.

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 20.

  	
   

  	
  Duties Of Rights Agent.

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 21.

  	
   

  	
  Change Of Rights Agent.

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 22.

  	
   

  	
  Issuance Of New Right
  Certificates.

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 23.

  	
   

  	
  Redemption.

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 24.

  	
   

  	
  Exchange.

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 25.

  	
   

  	
  Notice Of Certain Events.

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 26.

  	
   

  	
  Notices.

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 27.

  	
   

  	
  Supplements And Amendments.

  	
   

  	
  31

  

 i
 

 

	
  SECTION 28.

  	
   

  	
  Determination And Actions By
  The Board Of Directors, Etc.

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 29.

  	
   

  	
  Successors.

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 30.

  	
   

  	
  Benefits Of This Agreement.

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 31.

  	
   

  	
  Severability.

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 32.

  	
   

  	
  Governing Law.

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 33.

  	
   

  	
  Counterparts.

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 34.

  	
   

  	
  Descriptive Headings.

  	
   

  	
  32

  

 

	
  Exhibits

  
	
   

  
	
  Exhibit A: Form of
  Certificate of Designation.

  
	
   

  
	
  Exhibit B: Form of Right
  Certificate.

  
	
   

  
	
  Exhibit C: Form of Summary
  of Rights to Purchase Preferred Shares.

  

 

 ii

 

RIGHTS AGREEMENT

THIS RIGHTS AGREEMENT
(“Agreement”), dated as of September 6, 2007, between JOS. A. BANK CLOTHIERS,
INC., a Delaware corporation (the “Company”), and CONTINENTAL STOCK TRANSFER
& TRUST COMPANY (“Rights Agent”).

The Company’s board of directors (the “Board of Directors”) has
authorized and declared a dividend of one preferred share purchase right (a “Right”)
for each Common Share (as such term is hereinafter defined) issued and
outstanding at the close of business on September 20, 2007 (the “Record Date”),
each Right representing the right to purchase one one-hundredth of a Preferred
Share (as such term is hereinafter defined), upon the terms and subject to the
conditions herein set forth, and has further authorized and directed the
issuance of one Right with respect to each Common Share that shall become
issued and outstanding between the Record Date and the earliest to occur of the
Distribution Date, the Redemption Date and the Final Expiration Date (as such
terms are hereinafter defined); provided, however,
that Rights may be issued with respect to Common Shares that shall become
issued and outstanding after the Distribution Date and prior to the earlier of
the Redemption Date and the Final Expiration Date in accordance with the
provisions of Section 22 hereof.

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

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

(a)           “Acquiring
Person” shall mean any Person (as such term is hereinafter defined)
who or that, together with all Affiliates and Associates (as such terms are
hereinafter defined) of such Person, shall be the Beneficial Owner (as such
term is hereinafter defined) of 20% or more of the Common Shares then
outstanding.  Notwithstanding the
foregoing, (A) the term Acquiring Person shall not include (i) the Company,
(ii) any Subsidiary (as such term is hereinafter defined) of the Company, (iii)
any employee benefit or compensation plan of the Company or any Subsidiary of
the Company or (iv) any entity holding Common Shares for or pursuant to the
terms of any such employee benefit or compensation plan of the Company or any
Subsidiary of the Company and (B) no Person shall become an “Acquiring Person”
(i) as the result of an acquisition of Common Shares by the Company which, by
reducing the number of Common Shares issued and outstanding, increases the
proportionate number of Common Shares beneficially owned by such Person to 20%
or more of the Common Shares then outstanding; provided,
however, that if a Person shall become the Beneficial Owner of 20%
or more of the Common Shares then outstanding by reason of share purchases by
the Company and shall, following written notice from, or public disclosure by
the Company of such share purchases by the Company, become the Beneficial Owner
of any additional Common Shares without the prior consent of the Company and
shall then Beneficially Own more than 20% of the Common Shares then
outstanding, then such Person shall be deemed to be an “Acquiring Person,” (ii)
as the result of the acquisition of Common Shares directly from the Company; provided, however,
that if a 

 

Person shall become the Beneficial Owner of 20% or more of the Common
Shares then outstanding by reason of share purchases or issuances directly from
the Company and shall, after that date, become Beneficial Owner of any
additional Common Shares without the prior written consent of the Company and
shall then Beneficially Own more than 20% of the Common Shares then
outstanding, then such Person shall be deemed to be an “Acquiring Person” or
(iii) if the Board of Directors determines in good faith that a Person who
would otherwise be an “Acquiring Person,” as defined pursuant to the foregoing
provisions of this Section 1(a), has become such inadvertently, and such
Person divests, as promptly as practicable (as determined in good faith by the
Board of Directors), following receipt of written notice from the Company of
such event, of Beneficial Ownership of a sufficient number of Common Shares so
that such Person would no longer be an Acquiring Person, as defined pursuant to
the foregoing provisions of this Section 1(a), then such Person shall not be
deemed to be an “Acquiring Person” for any purposes of this Agreement; provided, however, that if such Person
shall again become the Beneficial Owner of 20% or more of the Common Shares
then outstanding, such Person shall be deemed an “Acquiring Person,” subject to
the exceptions set forth in this Section 1(a).

(b)           “Affiliate”
and “Associate” shall have the
respective meanings ascribed to such terms in Rule 12b-2 of the General Rules
and Regulations under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), as in effect on the date of this Agreement; provided, however, that the limited partners of a limited
partnership shall not be deemed to be Associates of such limited partnership
solely by virtue of their limited partnership interests.

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

(i)            that
such Person or any of such Person’s Affiliates or Associates is deemed to
beneficially own, within the meaning of Rule 13d-3 of the General Rules and Regulations
under the Exchange Act as in effect on the date of this Agreement;

(ii)           that
such Person or any of such Person’s Affiliates or Associates has (A) the right
to acquire (whether such right is exercisable immediately or only after the
passage of time) pursuant to any agreement, arrangement or understanding (other
than customary agreements with and between underwriters and selling group
members with respect to a bona fide public offering of securities), or upon the
exercise of conversion rights, exchange rights, rights (other than these
Rights), warrants or options, or otherwise; provided, however,
that a Person shall not be deemed the Beneficial Owner of, or to beneficially
own, securities tendered pursuant to a tender or exchange offer made by or on
behalf of such Person or any of such Person’s Affiliates or Associates until
such tendered securities are accepted for purchase or exchange; or (B) the
right to vote pursuant to any agreement, arrangement or understanding; provided, however, that a Person shall not be deemed the
Beneficial Owner of, or to beneficially own, any security if the agreement,
arrangement or understanding to vote such security (1) arises solely from a
revocable proxy or consent given to such Person in response to a public proxy or
consent solicitation made pursuant to, and in accordance with, the applicable
rules and regulations promulgated under the Exchange Act and (2) is not also
then reportable on Schedule 13D under the Exchange Act (or any comparable or
successor report); or

 2
 

 

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

Notwithstanding anything in this definition of Beneficial Ownership to
the contrary, the phrase, “then outstanding,” when used with reference to a
Person’s Beneficial Ownership of securities of the Company, shall mean the
number of such securities then issued and outstanding together with the number
of such securities not then actually issued and outstanding which such Person
would be deemed to own beneficially hereunder.

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

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

(f)            “Common
Shares” shall mean the shares of common stock, par value $0.01 per
share, of the Company; provided, however,
that, “Common Shares,” when used in this Agreement in connection with a
specific reference to any Person other than the Company, shall mean the capital
stock (or equity interest) with the greatest voting power of such other Person
or, if such other Person is a Subsidiary of another Person, the Person or
Persons that ultimately control such first-mentioned Person.

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

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

(i)            “Interested
Stockholder” shall mean any Acquiring Person or any Affiliate or
Associate of an Acquiring Person or any other Person in which any such
Acquiring Person, Affiliate or Associate has an interest, or any other Person
acting directly or indirectly on behalf of or in concert with any such
Acquiring Person, Affiliate or Associate.

(j)            “Person”
shall mean any individual, firm, corporation or other entity, and shall include
any successor (by merger or otherwise) of such entity.

(k)           “Preferred
Shares” shall mean shares of Series A Junior Participating Preferred
Stock, par value $1.00 per share, of the Company having the designations and
the powers, preferences and rights, and the qualifications, limitations and
restrictions set forth in the Form of Certificate of Designation attached to
this Agreement as Exhibit A.

(l)            “Purchase
Price” shall have the meaning set forth in Section 7(b) hereof.

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

 3
 

 

(n)           “Shares
Acquisition Date” shall mean the first date of public announcement
by the Company or an Acquiring Person that an Acquiring Person has become such;
provided, however that, if such
Person is determined not to have become an Acquiring Person pursuant to
Section l(a)(B)(iii) hereof, then no Shares Acquisition Date shall be
deemed to have occurred.

(o)           “Subsidiary”
of any Person shall mean any corporation or other entity of which a majority of
the voting power of the voting equity securities or equity interest is owned,
directly or indirectly, by such Person.

(p)           “Transaction”
shall mean any merger, consolidation or sale of assets described in
Section 13(a) hereof or any acquisition of Common Shares which would
result in a Person becoming an Acquiring Person or a Principal Party (as such
term is hereinafter defined).

(q)           “Transaction
Person” with respect to a Transaction shall mean (i) any Person who
(x) is or will become an Acquiring Person or a Principal Party (as such term is
hereinafter defined) if the Transaction were to be consummated and (y) directly
or indirectly proposed or nominated a director of the Company which director is
in office at the time of consideration of the Transaction, or (ii) an Affiliate
or Associate of such a Person.

SECTION
2.         Appointment Of Rights Agent.  The Company hereby appoints the Rights Agent
to act as agent for the Company in accordance with the terms and conditions
hereof, and the Rights Agent hereby accepts such appointment.  The Company may from time to time appoint
such co-Rights Agents as it may deem necessary or desirable.

SECTION 3.         Issue Of Right Certificates.

(a)           Until
the earlier of the Close of Business on (i) the tenth day after the Shares
Acquisition Date or (ii) the tenth Business Day (or such later date as may be
determined by action of the Board of Directors prior to such time as any Person
becomes an Acquiring Person) after the date of the commencement (determined in
accordance with Rule 14d-2 under the Exchange Act) by any Person (other than
the Company, any Subsidiary of the Company, any employee benefit plan of the
Company or of any Subsidiary of the Company or any entity holding Common Shares
for or pursuant to the terms of any such plan) of, or of the first public
announcement of the intention of any Person (other than the Company, any
Subsidiary of the Company, any employee benefit plan of the Company or of any
Subsidiary of the Company or any entity holding Common Shares for or pursuant
to the terms of any such plan) to commence, a tender or exchange offer (which
intention to commence remains in effect for five Business Days after such
announcement), the consummation of which would result in any Person becoming an
Acquiring Person (including any such date that is after the date of this
Agreement and prior to the issuance of the Rights, the earlier of such dates
being herein referred to as the “Distribution Date”), (x) the Rights will be
evidenced by the certificates for Common Shares registered in the names of the
holders thereof (which certificates shall also be deemed to be Right
Certificates) and not by separate Right Certificates, and (y) the Rights (and
the right to receive Right Certificates therefor) will be transferable only in
connection with the transfer of Common Shares. 
As soon as practicable after the Distribution Date, the Company will
prepare and execute, the Rights Agent will countersign, and the Company will
send or cause to be sent (and the Rights Agent will, if requested, send) by
first-class, insured, postage-prepaid mail, to each 

 4
 

 

record holder of Common Shares as of the Close of Business on the
Distribution Date, at the address of such holder shown on the records of the
Company, a Right Certificate, in substantially the form of Exhibit B hereto (a “Right
Certificate”), evidencing one Right for each Common Share so held, subject to
the adjustment provisions of Section 11 of this Agreement.  As of the Distribution Date, the Rights will
be evidenced solely by such Right Certificates.

(b)           On
the Record Date, or as soon as practicable thereafter, the Company will send
(directly or through the Rights Agent or its transfer agent) a copy of a
Summary of Rights to Purchase Preferred Shares, in substantially the form of
Exhibit C hereto (the “Summary of Rights”), by first-class, postage-prepaid
mail, to each record holder of Common Shares as of the Close of Business on the
Record Date, at the address of such holder shown on the records of the
Company.  With respect to certificates
for Common Shares outstanding as of the Record Date, until the Distribution
Date, the Rights will be evidenced by such certificates registered in the names
of the holders thereof.  Until the
Distribution Date (or the earlier of the Redemption Date and the Final
Expiration Date), the surrender for transfer of any certificate for Common
Shares outstanding on the Record Date shall also constitute the transfer of the
Rights associated with the Common Shares represented thereby.

(c)           Certificates
for Common Shares that become outstanding after the Record Date but prior to
the earliest of the Distribution Date, the Redemption Date or the Final
Expiration Date shall have impressed on, printed on, written on or otherwise
affixed to them the following legend:

This certificate also evidences and entitles
the holder hereof to certain rights as set forth in a Rights Agreement between
Jos. A. Bank Clothiers, Inc.  (the “Company”)
and Continental Stock Transfer & Trust Company, as Rights Agent (the “Rights
Agent”), dated as of September 6, 2007, as amended from time to time (the “Rights
Agreement”), the terms of which are hereby incorporated herein by reference and
a copy of which is on file at the principal executive offices of the
Company.  Under certain circumstances, as
set forth in the Rights Agreement, such Rights will be evidenced by separate
certificates and will no longer be evidenced by this certificate.  The Company will mail to the holder of this
certificate a copy of the Rights Agreement without charge after receipt of a
written request therefor.  As described
in the Rights Agreement, Rights issued to any Person who becomes an Acquiring
Person or an Affiliate or Associate thereof (as defined in the Rights
Agreement) and certain related persons, whether currently held by or on behalf
of such Person or by any subsequent holder, shall become null and void.

With respect to such certificates containing the foregoing legend,
until the Distribution Date (or, if earlier, the earlier of the Redemption Date
or the Final Expiration Date), the Rights associated with the Common Shares
represented by such certificates shall be evidenced by such certificates alone,
and the surrender for transfer of any such certificate shall also constitute
the transfer of the Rights associated with the Common Shares represented
thereby.  In the event that the Company
purchases or acquires any Common Shares after the Record Date but prior to the
Distribution Date, any Rights associated with such Common Shares shall be
deemed canceled and retired so that the Company shall not be entitled to
exercise any Rights associated with the Common Shares that are no longer
outstanding.  Notwithstanding this
Section 3(c), the omission 

 5
 

 

of a legend shall not affect the
enforceability of any part of this Agreement or the rights of any holder of the
Rights.

SECTION 4.         Form Of Right Certificates.

(a)           The
Right Certificates (and the form of election to purchase Preferred Shares, the
form of assignment and the form of certification to be printed on the reverse
thereof) shall be substantially the same as Exhibit B hereto and may have such
marks of identification or designation and such legends, summaries or
endorsements printed thereon as the Company may deem appropriate 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 or quotation
system on which the Rights may from time to time be listed, or to conform to
usage.  Subject to the provisions of
Sections 7, 11 and 22 hereof, the Right Certificates shall entitle the holders
thereof to purchase such number of one one-hundredths of a Preferred Share as
shall be set forth therein at the Purchase Price (as defined in
Section 7(b)), but the number of such one one-hundredths of a Preferred
Share and the Purchase Price shall be subject to adjustment as provided herein.

(b)           Any
Right Certificate issued pursuant to Section 3(a) or Section 22
hereof that represents Rights that are null and void pursuant to the second
paragraph of Section 11(a)(ii)
hereof and any Right Certificate issued pursuant to Section 6 or
Section 11 hereof upon transfer, exchange, replacement or adjustment of
any other Right Certificate referred to in this sentence, shall contain (to the
extent feasible) the following legend:

The Rights represented by this Right Certificate are or were
beneficially owned by a Person who was or became an Acquiring Person or an
Affiliate or Associate of an Acquiring Person (as such terms are defined in the
Rights Agreement).  Accordingly, this
Right Certificate and the Rights represented hereby are null and void.

The provisions of Section 11(a)(ii) hereof shall be operative
whether or not the foregoing legend is contained on any such Right Certificate.

SECTION
5.         Countersignature And
Registration.  The
Right Certificates shall be executed on behalf of the Company by its Chairman
of the Board, its Chief Executive Officer, its President, its Chief Financial
Officer, or any of its Senior Vice Presidents, either manually or by facsimile
signature, may have affixed thereto the Company’s seal or a facsimile thereof,
and shall be attested by the Secretary or an Assistant Secretary of the
Company, either manually or by facsimile signature.  The Right Certificates shall be manually
countersigned by the Rights Agent and shall not be valid for any purpose unless
countersigned.  In case any officer of
the Company who shall have signed any of the Right Certificates shall cease to
be such officer of the Company before countersignature by the Rights Agent and
issuance and delivery by the Company, such Right Certificates, nevertheless,
may be countersigned by the Rights Agent and issued and delivered by the
Company with the same force and effect as though the person who signed such
Right Certificates had not ceased to be such officer of the Company; and any
Right Certificate may be signed on behalf of the Company by any person who, at
the actual date of the execution of such Right Certificate, shall be a proper
officer of the Company to sign such Right 

 6
 

 

Certificate, although at the date of the execution of
this Agreement any such person was not such an officer.

Following the Distribution Date, the Rights Agent will keep or cause to
be kept, at its office designated for such purpose, books for registration and
transfer of the Right Certificates issued hereunder.  Such books shall show the names and addresses
of the respective holders of the Right Certificates, the number of Rights
evidenced on its face by each of the Right Certificates and the date of each of
the Right Certificates.

SECTION
6.         Transfer, Split Up, Combination
And Exchange Of Right Certificates; Mutilated, Destroyed, Lost Or Stolen Right
Certificates. Subject to the provisions of
Section 11(a)(ii), Section 14 and Section 24 hereof, at any time
after the Close of Business on the Distribution Date, and at or prior to the
Close of Business on the earlier of the Redemption Date or the Final Expiration
Date, any Right Certificate or Right Certificates may be transferred, split up,
combined or exchanged for another Right Certificate or Right Certificates,
entitling the registered holder to purchase a like number of one one-hundredths
of a Preferred Share as the Right Certificate or Right Certificates surrendered
then entitled such holder to purchase. 
Any registered holder desiring to transfer, split up, combine or
exchange any Right Certificate or Right Certificates shall make such request in
writing delivered to the Rights Agent, and shall surrender the Right
Certificate or Right Certificates to be transferred, split up, combined or
exchanged at the office 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 Right Certificate until the registered holder shal1
have completed and signed the certificate contained in the form of assignment
on the reverse side of such Right Certificate and shall have provided such
additional evidence of the identity of the Beneficial Owner (or former
Beneficial Owner) or Affiliates or Associates thereof as the Company shall
reasonably request.  Thereupon the Rights
Agent shall, subject to Section 11(a)(ii), Section 14 and
Section 24 hereof, countersign and deliver to the person entitled thereto
a Right Certificate or Right Certificates, as the case may be, as so
requested.  The Company may require
payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any transfer, split up, combination or exchange of
Right Certificates.

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

Notwithstanding any other provisions hereof, the Company and the Rights
Agent may amend this Agreement to provide for uncertificated Rights in addition
to or in place of Rights evidenced by Rights Certificates.

 7
 

 

SECTION 7.         Exercise Of Rights; Purchase Price;
Expiration Date Of Rights.

(a)           The
registered holder of any Right Certificate may exercise the Rights evidenced
thereby (except as otherwise provided herein) in whole or in part at any time
after the Distribution Date upon surrender of the Right Certificate, with the
form of election to purchase on the reverse side thereof duly executed, to the
Rights Agent at the office of the Rights Agent designated for such purpose,
together with payment of the Purchase Price for each one one- hundredth of a
Preferred Share (or such other number of shares or other securities) as to
which the Rights are exercised, at or prior to the earliest of (i) the Close of
Business on September 20, 2017 (the “Final Expiration Date”), (ii) the time at
which the Rights are redeemed as provided in Section 23 hereof (the “Redemption
Date”), or (iii) the time at which such Rights are exchanged as provided in
Section 24 hereof.

(b)           The
purchase price for each one one-hundredth of a Preferred Share pursuant to the
exercise of a Right shall initially be $200.00 (the “Purchase Price”) and shall
be subject to adjustment from time to time as provided in Sections 11 and 13
hereof and shall be payable in lawful money of the United States of America in
accordance with Section 7(c) below.

(c)           Upon
receipt of a Right Certificate representing exercisable Rights, with the form
of election to purchase duly executed, accompanied by payment of the Purchase
Price for the shares to be purchased and an amount equal to any applicable
transfer tax required to be paid by the holder of such Right Certificate in
accordance with Section 9 hereof by certified check, cashier’s check, bank
draft or money order payable to the order of the Company, the Rights Agent
shall thereupon promptly (i) (A) requisition from any transfer agent for the
Preferred Shares certificates for the number of Preferred Shares to be
purchased and the Company hereby irrevocably authorizes its transfer agent to
comply with all such requests, or (B) if the Company, in its sole discretion,
shall have elected to deposit the Preferred Shares issuable upon exercise of
the Rights hereunder into a depository, requisition from the depositary agent
depositary receipts representing such number of one one-hundredths of a
Preferred Share as are to be purchased (in which case certificates for the
Preferred Shares represented by such receipts shall be deposited by the
transfer agent with the depositary agent) and the Company hereby directs the
depositary agent to comply with such request, (ii) when appropriate,
requisition from the Company the amount of cash to be paid in lieu of issuance
of fractional shares in accordance with Section 14 hereof, (iii) after
receipt of such certificates or depositary receipts, cause the same to be
delivered to or upon the order of the registered holder of such Right
Certificate, registered in such name or names as may be designated by such
holder and (iv) when appropriate, after receipt, deliver such cash to or upon
the order of the registered holder of such Right Certificate.  In the event that the Company is obligated to
issue securities of the Company other than Preferred Shares (including Common
Shares) of the Company pursuant to Section 11(a) hereof, the Company will
make all arrangements necessary so that such other securities are available for
distribution by the Rights Agent, if and when appropriate.

In addition, in the case of an exercise of the Rights by a holder
pursuant to Section 11(a)(ii) hereof, the Rights Agent shall return such
Right Certificate to the registered holder thereof after imprinting, stamping
or otherwise indicating thereon that the rights represented by such Right
Certificate no longer include the rights provided by Section 11(a)(ii)
hereof, and, if fewer than all the Rights represented by such Right Certificate
were so exercised, the Rights Agent shall indicate on the Right Certificate the
number of Rights represented thereby that continue to include the rights
provided by Section 11(a)(ii) hereof.

 8
 

 

(d)           In
case the registered holder of any Right Certificate shall exercise fewer than
all the Rights evidenced thereby (other than a partial exercise of rights
pursuant to Section 11 (a)(ii) as described in Section 7(c) hereof),
a new Right Certificate evidencing Rights equivalent to the Rights remaining
unexercised shall be issued by the Rights Agent to the registered holder of
such Right Certificate or to his duly authorized assigns, subject to the
provisions of Section 14 hereof.

(e)           The
Company covenants and agrees that it will cause to be reserved and kept
available out of its authorized and unissued Preferred Shares or any Preferred
Shares held in its treasury, the number of Preferred Shares that will be
sufficient to permit the exercise in full of all outstanding Rights in
accordance with this Section 7.

(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 upon the occurrence of any purported exercise as set forth in this
Section 7 unless such registered holder shall have (i) completed and
signed the certification following the form of election to purchase set forth
on the reverse side of the Rights Certificate surrendered for such exercise,
(ii) tendered the Purchase Price (and an amount equal to any applicable transfer
tax required to be paid by the holder of such Right Certificate in accordance
with Section 9) to the Company in the manner set forth in
Section 7(c), and (iii) provided such additional evidence of the identity
of the Beneficial Owner (or former Beneficial Owner) or Affiliates or
Associates thereof as the Company shall reasonably request.

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

SECTION
9.         Availability Of Preferred
Shares.  The Company
covenants and agrees that so long as the Preferred Shares (and, after the time
a person becomes an Acquiring Person, Common Shares or any other securities)
issuable upon the exercise of the Rights may be listed on any national
securities exchange or quotation system, the Company shall use its best 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 or quotation system
upon official notice of issuance upon such exercise.

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

 9
 

 

Preferred Shares (subject to payment of the
Purchase Price), be duly and validly authorized and issued and fully paid and
nonassessable shares or other securities.

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

As soon as practicable after the Distribution Date, the Company shall
use its best efforts to:

(i)            prepare
and file a registration statement under the Securities Act of 1933, as amended
(the “Act”), with respect to the securities purchasable upon exercise of the
Rights on an appropriate form, will use its best efforts to cause such
registration statement to become effective as soon as practicable after such
filing and will use its best efforts to cause such registration statement to
remain effective (with a prospectus at all times meeting the requirements of
the Act) until the Final Expiration Date; and

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

SECTION
10.       Preferred Shares Record Date.  Each person in whose name any certificate for
Preferred Shares or other securities is issued upon the exercise of Rights
shall for all purposes be deemed to have become the holder of record of the
Preferred Shares or other securities represented thereby on, and such
certificate shall be dated, the date upon which the Right Certificate
evidencing such Rights was duly surrendered with the forms of election and
certification duly executed and payment of the Purchase Price (and any
applicable transfer taxes) was made; provided, however,
that if the date of such surrender and payment is a date upon which the
Preferred Shares or other securities transfer books of the Company are closed,
such person shall be deemed to have become the record holder of such shares on,
and such certificate shall be dated, the next succeeding Business Day on which
the Preferred Shares or other securities transfer books of the Company are
open.  Prior to the exercise of the
Rights evidenced thereby, the holder of a Right Certificate, as such, shall not
be entitled to any rights of a holder of Preferred Shares for which the Rights
shall be exercisable, including, without limitation, the right to vote, to
receive dividends or other distributions or to exercise any preemptive rights,
and shall not be entitled to receive any notice of any proceedings of the
Company, except as provided herein.

 

 10

 

SECTION 11.             Adjustment
Of Purchase Price, Number Of Shares Or Number Of Rights.  The Purchase Price, the number of Preferred
Shares covered by each Right and the number of Rights outstanding are subject
to adjustment from time to time as provided in this Section 11.

(a)

(i)            In the event the Company shall at any
time after the date of this Agreement (A) declare a dividend on the Preferred
Shares payable in Preferred Shares, (B) subdivide the outstanding Preferred
Shares, (C) combine the outstanding Preferred Shares into a smaller number of
Preferred Shares or (D) issue any shares of its capital stock in a
reclassification of the Preferred Shares (including any such reclassification
in connection with a consolidation or merger in which the Company is the continuing
or surviving corporation), except as otherwise provided in this
Section 11(a), the Purchase Price in effect at the time of the record date
for such dividend or of the effective date of such subdivision, combination or
reclassification, and the number and kind of shares of capital stock issuable
on such date, shall be proportionately adjusted so that the holder of any Right
exercised after such time shall be entitled to receive the aggregate number and
kind of shares of capital stock that, if such Right had been exercised
immediately prior to such date and at a time when the Preferred Shares transfer
books of the Company were open, such holder would have owned upon such exercise
and been entitled to receive by virtue of such dividend, subdivision, combination
or reclassification; provided, however,
that in no event shall the consideration to be paid upon the exercise of one
Right be less than the aggregate par value of the shares of capital stock of
the Company issuable upon exercise of one Right.  If an event occurs that would require an
adjustment under both 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)           Subject to Section 24 hereof and
the provisions of the next paragraph of this Section 11(a)(ii), in the
event any Person shall become an Acquiring Person, each holder of a Right
shall, for a period of 60 days after the later of such time any Person becomes
an Acquiring Person or the effective date of an appropriate registration
statement filed under the Act pursuant to Section 9 hereof (provided,
however that, if at any time prior to the expiration or termination of the
Rights there shall be a temporary restraining order, a preliminary injunction,
an injunction, or temporary suspension by the Board of Directors, or similar
obstacle to exercise of the Rights (the “Injunction”) that prevents exercise of
the Rights, a new 60-day period shall commence on the date the Injunction is
removed), have a right to receive, upon exercise thereof at a price equal to
the then current Purchase Price multiplied by the number of one one-hundredths
of a Preferred Share for which a Right is then exercisable, in accordance with
the terms of this Agreement and in lieu of Preferred Shares, such number of
Common Shares as shall equal the result obtained by (A) multiplying the then
current Purchase Price by the number of one one-hundredths of a Preferred Share
for which a Right is then exercisable and dividing that product by (B) 50% of
the then current per share market price of the Common Shares (determined
pursuant to Section 11(d) hereof) on the date such Person became an
Acquiring Person; provided, however, that if the
transaction that would otherwise give rise to the foregoing adjustment is also
subject to the provisions of Section 13 hereof, then only the provisions
of Section 13 hereof shall apply and no adjustment shall be made pursuant
to this 

 11
 

 

Section 11(a)(ii).  In the event that any Person shall become an
Acquiring Person and the Rights shall then be outstanding, the Company shall
not take any action that would eliminate or diminish the benefits intended to
be afforded by the Rights.

Notwithstanding anything in this Agreement to the contrary, from and
after the time any Person becomes an Acquiring Person, any Rights beneficially
owned by (i) such Acquiring Person or an Associate or Affiliate of such
Acquiring Person, (ii) a transferee of such Acquiring Person (or of any such
Associate or Affiliate) who becomes a transferee after the Acquiring Person
became such, or (iii) a transferee of such Acquiring Person (or of any such
Associate or Affiliate) who becomes a transferee prior to or concurrently with the
Acquiring Person’s becoming such and receives such Rights pursuant to either
(A) a transfer (whether or not for consideration) from the Acquiring Person to
holders of equity interests in such Acquiring Person or to any Person with whom
the Acquiring Person has any continuing agreement, arrangement or understanding
regarding the transferred Rights or (B) a transfer that the Board of Directors
has determined is part of a plan, arrangement or understanding that has as a
primary purpose or effect the avoidance of this Section 11(a)(ii), 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 insure that the
provisions of this Section 11(a)(ii) and Section 4(b) hereof are
complied with, but shall have no liability to any holder of Right Certificates
or other Person as a result of its failure to make any determinations with
respect to an Acquiring Person or its Affiliates, Associates or transferees
hereunder.  No Right Certificate shall be
issued at any time upon the transfer of any Rights to an Acquiring Person whose
Rights would be void pursuant to the preceding sentence or any Associate or
Affiliate thereof or to any nominee of such Acquiring Person, Associate or
Affiliate; and any Right Certificate delivered to the Rights Agent for transfer
to an Acquiring Person whose Rights would be void pursuant to the preceding sentence
shall be canceled.

(iii)         In lieu of issuing Common Shares in
accordance with Section 11(a)(ii) hereof, the Company may, if a majority
of the Board of Directors then in office determines that such action is
necessary or appropriate and not contrary to the interests of holders of
Rights, elect to (and, in the event that the Board of Directors has not
exercised the exchange right contained in Section 24(c) hereof and there
are not sufficient treasury shares and authorized but unissued Common Shares to
permit the exercise in full of the Rights in accordance with Section 11(a)(ii),
the Company shall) take all such action as may be necessary to authorize, issue
or pay, upon the exercise of the Rights, cash (including by way of a reduction
of the Purchase Price), property, Common Shares, other securities or any
combination thereof having an aggregate value equal to the value of the Common
Shares that otherwise would have been issuable pursuant to
Section 11(a)(ii) hereof, that aggregate value shall be determined by a
nationally recognized investment banking firm selected by a majority of the
Board of Directors then in office.  For
purposes of the preceding sentence, the value of the Common Shares shall be
determined pursuant to Section 11(d) hereof.  Any such election by the Board of Directors
must be made within 60 days following the date on which the event described in
Section 11(a)(ii) hereof shall have occurred.  Following the occurrence of the event
described in Section 11(a)(ii) hereof, a majority of the Board of
Directors then in office may suspend the exercisability of the Rights for a
period of up to 60 days following the date on which the event described in
Section 11(a)(ii) hereof shall have occurred to the extent that such
directors have not determined 

 12
 

 

whether to exercise their rights of election
under this Section 11(a)(iii).  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.

(b)           In case the Company shall fix a record
date for the issuance of rights, options or warrants to all holders of
Preferred Shares entitling them (for a period expiring within 45 calendar days
after such record date) to subscribe for or purchase Preferred Shares (or shares
having the same designations and the powers, preferences and rights, and the
qualifications, limitations and restrictions as the Preferred Shares (“equivalent
preferred shares”)) or securities convertible into Preferred Shares or
equivalent preferred shares at a price per Preferred Share or equivalent
preferred share (or having a conversion price per share, if a security
convertible into Preferred Shares or equivalent preferred shares) less than the
then current per share market price of the Preferred Shares (as such term is
hereinafter defined) on such record date, the Purchase Price to be in effect
after such record date shall be determined by multiplying the Purchase Price in
effect immediately prior to such record date by a fraction, the numerator of
which shall be the number of Preferred Shares outstanding on such record date
plus the number of Preferred Shares that the aggregate offering price of the
total number of Preferred Shares and/or equivalent preferred shares so to be
offered (and/or the aggregate initial conversion price of the convertible
securities so to be offered) would purchase at such current market price and
the denominator of which shall be the number of Preferred Shares outstanding on
such record date plus the number of additional Preferred Shares and/or
equivalent preferred shares to be offered for subscription or purchase (or into
which the convertible securities so to be offered are initially convertible); provided, however, that in no event shall
the consideration to be paid upon the exercise of one Right be less than the
aggregate par value of the shares of capital stock of the Company issuable upon
exercise of one Right.  In case such
subscription price may be paid in a consideration part or all of which shall be
in a form other than cash, the value of such consideration shall be as
determined in good faith by the Board of Directors, whose determination shall
be described in a statement filed with the Rights Agent.  Preferred Shares owned by or held for the
account of the Company shall not be deemed outstanding for the purpose of any
such computation.  Such adjustment shall
be made successively whenever such a record date is fixed; and in the event
that such rights, options or warrants are not so issued, the Purchase Price
shall be adjusted to be the Purchase Price that would then be in effect if such
record date had not been fixed.

(c)           In case the Company shall fix a record
date for the making of a distribution to all holders of the Preferred Shares
(including any such distribution made in connection with a consolidation or
merger in which the Company is the continuing or surviving corporation) of
evidences of indebtedness or assets (other than a regular quarterly cash
dividend or a dividend payable in Preferred Shares) or subscription rights or
warrants (excluding those referred to in Section 11(b) hereof), the
Purchase Price to be in effect after such record date shall be determined by
multiplying the Purchase Price in effect immediately prior to such record date
by a fraction, the numerator of which shall be the then current per share
market price of the Preferred Shares (as such term is hereinafter defined) on
such record date, less the fair market value (as determined in good faith by
the Board of Directors, whose determination shall be described in a statement
filed with the Rights Agent) of the portion of the assets or evidences of
indebtedness so to be distributed or of such subscription rights or warrants
applicable to one Preferred Share and the denominator of which shall be such
current per share market price of the Preferred Shares; provided, however, that in no event shall
the consideration to be paid upon the 

 13
 

 

exercise of one Right be less than the
aggregate par value of the shares of capital stock of the Company to be issued
upon exercise of one Right.  Such
adjustments shall be made successively whenever such a record date is fixed;
and in the event that such distribution is not so made, the Purchase Price
shall again be adjusted to be the Purchase Price which would then be in effect
if such record date had not been fixed.

(d)

(i)            For the purpose of any computation
hereunder, the “current per share market price” of any security (a “Security”
for the purpose of this Section 11(d)(i)) on any date shall be deemed to
be the average of the daily closing prices per share of such Security for the
30 consecutive Trading Days (as such term is hereinafter defined) immediately
prior to such date; provided, however,
that in the event that the current per share market price of the Security is
determined during a period following the announcement by the issuer of such
Security of (A) a dividend or distribution on such Security payable in shares
of such Security or securities convertible into such shares, or (B) any
subdivision, combination or reclassification of such Security or securities
convertible into such shares, or (C) any subdivision, combination or
reclassification of such Security and prior to the expiration of 30 Trading
Days after the ex dividend date for such dividend or distribution, or the
record date for such subdivision, combination or reclassification, then, and in
each such case, the current per share market price shall be appropriately
adjusted to reflect the current market price per share equivalent of such Security.  The closing price for each day shall be the
last sale price, regular way, or, in case no such sale takes place on such day,
the average of the closing bid and asked prices, regular way, in either case as
reported in the principal consolidated transaction reporting system with
respect to securities listed or admitted to trading on the New York Stock
Exchange or, if the Security is not listed or admitted to trading on the New
York Stock Exchange, as reported in the principal consolidated transaction reporting
system with respect to securities listed on the principal national securities
exchange on which the Security is listed or admitted to trading or, if the
Security is not listed or admitted to trading on any national securities
exchange, the last quoted price or, if not so quoted, the average of the high
bid and low asked prices in the over-the-counter market, as reported by the
National Association of Securities Dealers, Inc. Automated Quotations System (“Nasdaq”)
or such other system then in use, or, if on any such date the Security is not
quoted by any such organization, the average of the closing bid and asked
prices as furnished by a professional market maker making a market in the
Security selected by the Board of Directors or, if on any such date no
professional market maker is making a market in the Security, the price as
determined in good faith by the Board of Directors.  The term “Trading Day” shall mean a day on
which the principal national securities exchange on which the Security is
listed or admitted to trading is open for the transaction of business or, if
the Security is not listed or admitted to trading on any national securities
exchange, a Business Day.

(ii)           For the purpose of any computation
hereunder, the “current per share market price” of the Preferred Shares shall
be determined in accordance with the method set forth in Section 11(d)(i)
hereof.  If the Preferred Shares are not
publicly traded, the “current per share market price” of the Preferred Shares
shall be conclusively deemed to be the current per share market price of the
Common Shares as determined pursuant to Section 11 (d)(i) hereof
(appropriately adjusted to reflect any stock split, stock dividend or similar
transaction occurring after the date hereof) multiplied by one hundred.  If neither the Common Shares nor the 

 14
 

 

Preferred Shares are publicly held or so
listed or traded, “current per share market price” shall mean the fair value
per share as determined in good faith by the Board of Directors, whose
determination shall be described in a statement filed with the Rights Agent.

(e)           No adjustment in the Purchase Price
shall be required unless such adjustment would require an increase or decrease
of at least 1% in the Purchase Price; provided,
however, that any adjustments which by reason of this
Section 11(e) are not required to be made shall be carried forward and
taken into account in any subsequent adjustment.  All calculations under this Section 11
shall be made to the nearest cent or to the nearest one one-hundredth of a
Preferred Share or one ten-thousandth of any other share or security as the
case may be.  Notwithstanding the first
sentence of this Section 11(e), any adjustment required by this
Section 11 shall be made no later than the earlier of (i) three years from
the date of the transaction that requires such adjustment or (ii) the date of
the expiration of the right to exercise any Rights.

(f)            If as a result of an adjustment made
pursuant to Section 11(a) hereof, the holder of any Right thereafter
exercised shall become entitled to receive any shares of capital stock of the
Company other than Preferred Shares, thereafter the number of such other shares
so receivable upon exercise of any Right shall be subject to adjustment from
time to time in a manner and on terms as nearly equivalent as practicable to
the provisions with respect to the Preferred Shares contained in Sections 11(a)
through 11(c) hereof, inclusive, and the provisions of Sections 7, 9, 10, 13
and 14 hereof with respect to the Preferred Shares shall apply on like terms to
any such other shares.

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

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

(i)            The Company may elect on or after the
date of any adjustment of the Purchase Price to adjust the number of Rights, in
substitution for any adjustment in the number of one one- hundredths of a
Preferred Share purchasable upon the exercise of a Right.  Each of the Rights outstanding after such
adjustment of the number of Rights shall be exercisable for the number of one
one-hundredths of a Preferred Share for which a Right was exercisable
immediately prior to such adjustment. 
Each Right held of record prior to such adjustment of the number of
Rights shall become that number of Rights (calculated to the nearest one
ten-thousandth) obtained by dividing the Purchase Price in effect immediately
prior to adjustment of the Purchase Price by 

 15
 

 

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

(j)            Irrespective of any adjustment or
change in the Purchase Price or the number of one one-hundredths of a Preferred
Share issuable upon the exercise of the Rights, the Right Certificates
theretofore and thereafter issued may continue to express the Purchase Price
and the number of one one-hundredths of a Preferred Share that was expressed in
the initial Right Certificates issued hereunder.

(k)           Before taking any action that would
cause an adjustment reducing the Purchase Price below one one-hundredth of the
then par value, if any, of the Preferred Shares issuable upon exercise of the
Rights, the Company shall take any corporate action that may, in the opinion of
its counsel, be necessary in order that the Company may validly and legally
issue fully paid and non-assessable Preferred Shares at such adjusted Purchase
Price.

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

(m)          The Company covenants and agrees that,
after the Distribution Date, it will not, except as permitted by
Section 23 or Section 27 hereof, take (or permit any Subsidiary to
take) any action the purpose of which is to, or if at the time such action is
taken it is reasonably foreseeable that the effect of such action is to,
materially diminish or eliminate the benefits intended to be afforded by the
Rights.  Any such action taken by the
Company during any period after any Person becomes an Acquiring Person but prior
to the Distribution Date shall be null and void unless such action could be
taken under this Section 11(m) from and after the Distribution Date.

 16
 

 

(n)           Anything in this Section 11 to the
contrary notwithstanding, the Company shall be entitled to make such reductions
in the Purchase Price, in addition to those adjustments expressly required by
this Section 11, as and to the extent that it in its sole discretion shall
determine to be advisable in order that any consolidation or subdivision of the
Preferred Shares, issuance wholly for cash of any Preferred Shares at less than
the current market price, issuance wholly for cash of Preferred Shares or
securities that by their terms are convertible into or exchangeable for
Preferred Shares, dividends on Preferred Shares payable in Preferred Shares or
issuance of rights, options or warrants referred to hereinabove in
Section 11(b), hereafter made by the Company to holders of its Preferred
Shares shall not be taxable to such stockholders.

(o)           In the event that at any time after the
date of this Agreement and prior to the Distribution Date, the Company shall
(i) declare or pay any dividend on the Common Shares payable in Common Shares
or (ii) effect a subdivision, combination or consolidation of the Common Shares
(by reclassification or otherwise than by payment of dividends in Common
Shares) into a greater or lesser number of Common Shares, then in any such case
(A) the number of one one-hundredths of a Preferred Share purchasable after
such event upon proper exercise of each Right shall be determined by
multiplying the number of one one-hundredths of a Preferred Share so
purchasable immediately prior to such event by a fraction, the numerator of
which is the number of Common Shares outstanding immediately before such event
and the denominator of which is the number of Common Shares outstanding
immediately after such event, and (B) each Common Share outstanding immediately
after such event shall have issued with respect to it that number of Rights
that each Common Share outstanding immediately prior to such event had issued
with respect to it.  The adjustments
provided for in this Section 11(o) shall be made successively whenever
such a dividend is declared or paid or such a subdivision, combination or
consolidation is effected.

(p)           The exercise of Rights under
Section 11(a)(ii) hereof shall only result in the loss of rights under
Section 11(a)(ii) hereof to the extent so exercised and shall not
otherwise affect the rights represented by the Rights under this Agreement,
including the rights represented by Section 13 hereof.

SECTION 12.             Certificate
Of Adjusted Purchase Price Or Number Of Shares.  Whenever an adjustment is made as provided in
Sections 11 and 13 hereof, the Company shall promptly (a) prepare a certificate
setting forth such adjustment, and a brief statement of the facts accounting
for such adjustment, (b) file with the Rights Agent and with each transfer
agent for the Common Shares or the Preferred Shares a copy of such certificate
and (c) mail a brief summary thereof to each holder of a Right Certificate in
accordance with Section 25 hereof. 
The Rights Agent shall be fully protected in relying on any such
certificate and on any adjustment therein contained and shall not be deemed to
have knowledge of any 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 that, following the Shares
Acquisition Date or, if a Transaction is proposed, the Distribution Date,
directly or indirectly (x) the Company shall consolidate with, or merge with
and into, any Interested Stockholder, or if in such merger or consolidation all
holders 

 17
 

 

of Common Stock are not treated alike, any
other Person, (y) any Interested Stockholder, or if in such merger or
consolidation all holders of Common Stock are not treated alike, any other
Person shall consolidate with the Company, or merge with and into the Company,
and the Company shall be the continuing or surviving corporation of such merger
(other than, in the case of either transaction described in (x) or (y), a
merger or consolidation that would result in all of the voting power
represented by the securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into securities of the surviving entity) all of the voting power
represented by the securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation and the holders of
such securities not having changed as a result of such merger or
consolidation), or (z) the Company shall sell, mortgage or otherwise transfer
(or one or more of its subsidiaries shall sell, mortgage or otherwise
transfer), in one or more transactions, assets or earning power aggregating
more than 50% of the assets or earning power of the Company and its
subsidiaries (taken as a whole) to any Interested Stockholder or Stockholders,
or if in such transaction all holders of Common Stock are not treated alike,
any other Person, (other than the Company or any Subsidiary of the Company in
one or more transactions each of which individually and the aggregate does not
violate Section 13(d) hereof) then, and in each such case, proper provision
shall be made so that (i) each holder of a Right, subject to
Section 11(a)(ii) hereof, shall have the right to receive, upon the
exercise thereof at a price equal to the then current Purchase Price multiplied
by the number of one one-hundredths of a Preferred Share for which a Right is
then exercisable in accordance with the terms of this Agreement and in lieu of
Preferred Shares, such number of freely tradeable Common Shares of the
Principal Party (as such term is hereinafter defined), free and clear of liens,
rights of call or first refusal, encumbrances or other adverse claims, as shall
be equal to the result obtained by (A) multiplying the then current Purchase
Price by the number of one one-hundredths of a Preferred Share for which a
Right is then exercisable (without taking into account any adjustment
previously made pursuant to Section 11(a)(ii) hereof) and dividing that
product by (B) 50% of the then current per share market price of the Common
Shares of such Principal Party (determined pursuant to Section 11(d)
hereof) on the date of consummation of such consolidation, merger, sale or
transfer; (ii) such Principal Party shall thereafter be liable for, and shall
assume, by virtue of such consolidation, merger, sale or transfer, all the
obligations and duties of the Company pursuant to this Agreement; (iii) the
term “Company” shall thereafter be deemed to refer to such Principal Party, it
being specifically intended that the provisions of Section 11 hereof shall
apply to such Principal Party; and (iv) such Principal Party shall take such
steps (including, but not limited to, the reservation of a sufficient number of
shares of its Common Shares in accordance with Section 9 hereof) in
connection with such consummation as may be necessary to assure that the provisions
hereof shall thereafter be applicable, as nearly as reasonably may be, in
relation to its Common Shares thereafter deliverable upon the exercise of the
Rights.

(b)           “Principal Party” shall mean:

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

 18
 

 

(ii)           in the case of any transaction described
in clause (z) of Section 13(a) hereof, the Person that is the party
receiving the greatest portion of the assets or earning power transferred
pursuant to such transaction or transactions;

provided, however,
that in any case, (1) if the Common Shares of such Person are not at such time
and have not been continuously over the preceding 12-month period registered
under Section 12 of the Exchange Act, and such Person is a direct or
indirect Subsidiary or Affiliate of another Person the Common Shares of which
are and have been so registered, “Principal Party” shall refer to such other
Person; (2) if such Person is a Subsidiary, directly or indirectly, or
Affiliate of more than one Person, the Common Shares 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 Shares having the greatest aggregate
market value; and (3) if such Person is owned, directly or indirectly, by a
joint venture formed by two or more Persons that are not owned, directly or
indirectly, by the same Person, the rules set forth in (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
such consolidation, merger, sale or transfer unless the Principal Party shall
have a sufficient number of authorized Common Shares that have not been issued
or reserved for issuance to permit the exercise in full of the Rights in
accordance with this Section 13 and unless prior thereto the Company and
each Principal Party and each other Person who may become a Principal Party as
a result of such consolidation, merger, sale or transfer shall have (i)
executed and delivered to the Rights Agent a supplemental agreement providing
for the terms set forth in Sections 13(a) and (b) and (ii) prepared, filed
and had declared and remain effective a registration statement under the Act on
the appropriate form with respect to the Rights and the securities exercisable
upon exercise of the Rights and further providing that, as soon as practicable
after the date of any consolidation, merger, sale or transfer of assets
mentioned in Section 13(a), the Principal Party at its own expense will:

(i)            cause the registration statement under
the Act with respect to the Rights and the securities purchasable upon exercise
of the Rights on an appropriate form to remain effective (with a prospectus at
all times meeting the requirements of the Act) until the Final Expiration Date;

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

(iii)         list the Rights and the securities
purchasable upon exercise of the Rights on each national securities exchange on
which the Common Shares were listed prior to the consummation of such consolidation,
merger, sale or transfer of assets or, if the Common Shares were not listed on
a national securities exchange prior to the consummation of such consolidation,
merger, sale or transfer of assets, on a national securities exchange; and

 19
 

 

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

The provisions of this Section 13 shall similarly apply to
successive mergers or consolidations or sales or other transfers.

(d)           After the Distribution Date, the Company
covenants and agrees that it shall not (i) consolidate with, (ii) merge with or
into, or (iii) sell or transfer to, in one or more transactions, assets or
earning power aggregating more than 50% of the assets or earning power of the
Company and its subsidiaries taken as a whole, any other Person (other than a
Subsidiary of the Company in a transaction that does not violate Section 11(m)
hereof), if (x) at the time of or after such consolidation, merger or sale
there are any charter or bylaw provisions or any rights, warrants or other
instruments or securities outstanding, agreements in effect or any other action
taken that would 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 or sale, the stockholders 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 Affiliates and Associates.  The Company shall not consummate any such
consolidation, merger, sale or transfer unless prior thereto the Company and
such other Person shall have executed and delivered to the Rights Agent a
supplemental agreement evidencing compliance with this Section 13(d).

SECTION 14.             Fractional
Rights And Fractional Shares.

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

 

 20

 

(b)           The
Company shall not be required to issue fractions of Preferred Shares (other
than fractions that are integral multiples of one one-hundredth of a Preferred
Share) upon exercise of the Rights or to distribute certificates that evidence
fractional Preferred Shares (other than fractions that are integral multiples
of one one-hundredth of a Preferred Share). 
Fractions of Preferred Shares in integral multiples of one one-hundredth
of a Preferred Share may, at the election of the Company, be evidenced by
depositary receipts; provided, however,
that holders of such depositary receipts shall have all of the designations and
the powers, preferences and rights, and the qualifications, limitations and
restrictions to which they are entitled as beneficial owners of the Preferred
Shares represented by such depositary receipts. 
In lieu of fractional Preferred Shares that are not integral multiples
of one one-hundredth of a Preferred Share, the Company shall pay to the registered
holders of Right Certificates at the time such Rights are exercised as herein
provided an amount in cash equal to the same fraction of the current market
value of one Preferred Share.  For the
purposes of this Section 14(b), the current market value of a Preferred
Share shall be the current per share market price of the Preferred Shares (as
determined pursuant to the second sentence of Section 11(d)(i) hereof) for
the Trading Day immediately prior to the date of such exercise (or, if not
publicly traded, in accordance with Section 11 (d)(ii) hereof).

(c)           Following
the occurrence of one of the transactions or events specified in
Section 11 hereof giving rise to the right to receive Common Shares,
capital stock equivalents (other than Preferred Shares) or other securities
upon the exercise of a Right, the Company shall not be required to issue
fractions of Common Shares or units of such Common Shares, capital stock
equivalents or other securities upon exercise of the Rights or to distribute
certificates which evidence fractional Common Shares, capital stock equivalents
or other securities.  In lieu of
fractional Common Shares, capital stock equivalents or other securities, the
Company shall pay to the registered holders of Right Certificates at the time
such Rights are exercised as herein provided an amount in cash equal to the
same fraction of the current market value of one Common Share or unit of such
Common Shares, capital stock equivalents or other securities.  For purposes of this Section 14(c), the
current market value shall be the current per share market price (as determined
pursuant to Section 11(d)(i) hereof) for the Trading Day immediately prior
to the date of such exercise and, if such capital stock equivalent is not
traded, each such capital stock equivalent shall have the value of one
one-hundredth of a Preferred Share.

(d)           The
holder of a Right by the acceptance of the Right expressly waives his right to
receive any fractional Rights or any fractional shares upon exercise of a Right
(except as provided above).

SECTION 15.             Rights Of Action.  All rights of action in respect of this
Agreement, excepting the rights of action given to the Rights Agent under
Sections 18 and 20 hereof, are vested in the respective registered holders of
the Right Certificates (and, prior to the Distribution Date, the registered
holders of the Common Shares) and any registered holder of any Right
Certificate (or, prior to the Distribution Date, of the Common Shares), without
the consent of the Rights Agent or of the holder of any other Right Certificate
(or, prior to the Distribution Date, of the Common Shares), may, in his own
behalf and for his own benefit, enforce, and may institute and maintain any
suit, action or proceeding against the Company to enforce, or otherwise act in
respect of, his right to exercise the Rights evidenced by such Right
Certificate in the manner provided in such Right Certificate and in this
Agreement.  Without limiting the
foregoing or any remedies available to the holders of Rights, it is specifically
acknowledged that the holders of 

 21
 

 

Rights would not have an adequate remedy at law for
any breach of this Agreement and will be entitled to specific performance of
the obligations under, and injunctive relief against actual or threatened
violations of the obligations of any Person subject to, this Agreement.  Holders of Rights shall be entitled to
recover the reasonable costs and expenses, including attorneys fees, incurred
by them in any action to enforce the provisions of this Agreement.

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

(a)           prior
to the Distribution Date, the Rights will be transferable only in connection
with the transfer of the Common Shares;

(b)           after
the Distribution Date, the Right Certificates are transferable (subject to the
provisions of this Agreement) only on the registry books of the Rights Agent if
surrendered at the principal office of the Rights Agent, duly endorsed or
accompanied by a proper instrument of transfer; and

(c)           the
Company and the Rights Agent may deem and treat the person in whose name the
Right Certificate (or, prior to the Distribution Date, the associated Common
Shares certificate) is registered as the absolute owner thereof and of the
Rights evidenced thereby (notwithstanding any notations of ownership or writing
on the Right Certificates or the associated Common Shares certificate made by
anyone other than the Company or the Rights Agent) for all purposes whatsoever,
and neither the Company nor the Rights Agent shall be affected by any notice to
the contrary.

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

SECTION 18.             Concerning
The Rights Agent.  The
Company agrees to pay to the Rights Agent reasonable compensation for all
services rendered by it hereunder and, from time to time, on demand of the
Rights Agent, its reasonable expenses and counsel fees and other disbursements
incurred in the administration and execution of this Agreement and the exercise
and performance of its duties hereunder. 
The Company also agrees to indemnify the Rights Agent for, and to hold
it harmless against, any loss, liability, or expense, incurred without 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 

 22
 

 

premises.  The
indemnity provided herein shall survive the expiration of the Rights and the termination
of this Agreement.

The Rights Agent shall be protected and shall incur no liability for,
or in respect of any action taken, suffered or omitted by it in connection
with, its administration of this Agreement in reliance upon any Right
Certificate or certificate for the Preferred Shares or Common Shares or for
other securities of the Company, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, direction, consent,
certificate, statement, or other paper or document believed by it to be genuine
and to be signed, executed and, where necessary, verified or acknowledged, by
the proper person or persons, or otherwise upon the advice of counsel as set
forth in Section 20 hereof.  In no
case will the Rights Agent be liable for special, indirect, incidental or
consequential or consequential loss or damage at any kind whatsoever (including
but not limited to lost profits), even if the Rights Agent has been advised of
such loss or damage.

SECTION 19.             Merger Or
Consolidation Or Change Of Name Of Rights Agent.  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 shareholder services or corporate trust business
of the Rights Agent or any successor Rights Agent, shall be the successor to
the Rights Agent under this Agreement without the execution or filing of any
paper or any further act on the part of any of the parties hereto, provided
that such corporation would be eligible for appointment as a successor Rights
Agent under the provisions of Section 21 hereof.  In case at the time such successor Rights
Agent shall succeed to the agency created by this Agreement any of the Right
Certificates shall have been countersigned but not delivered, any such
successor Rights Agent may adopt the countersignature of the predecessor Rights
Agent and deliver such Right Certificates so countersigned; and in case at that
time any of the Right Certificates shall not have been countersigned, any
successor Rights Agent may countersign such Right Certificates either in the
name of the predecessor Rights Agent or in the name of the successor Rights
Agent; and in all such cases such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement.

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

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

(a)           The
Rights Agent may consult with legal counsel of its choice (who may be legal
counsel for the Company), and the opinion of such counsel shall be full and
complete 

 23
 

 

authorization and protection to the Rights Agent as to any action taken
or omitted by it in good faith and in accordance with such opinion.

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

(c)           The
Rights Agent shall be liable hereunder to the Company and any other Person only
for its own gross negligence, bad faith or willful misconduct.

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

(e)           The
Rights Agent shall not be under any responsibility in respect of the validity
of this Agreement or the execution and delivery hereof (except the due
execution hereof by the Rights Agent) or in respect of the validity or
execution of any Right Certificate (except its countersignature thereof); nor
shall it be responsible for any breach by the Company of any covenant or
condition contained in this Agreement or in any Right Certificate; nor shall it
be responsible for any change in the exercisability of the Rights (including
the Rights becoming void pursuant to Section 11(a)(ii) hereof) or any
adjustment in the terms of the Rights (including the manner, method or amount
thereof) provided for in Sections 3, 11, 13, 23 or 24 hereof, or the
ascertaining of the existence of facts that would require any such change or
adjustment (except with respect to the exercise of Rights evidenced by Right
Certificates after receipt of a certificate pursuant to Section 12 hereof
describing such change or adjustment); nor shall it by any act hereunder be
deemed to make any representation or warranty as to the authorization or
reservation of any Preferred Shares to be issued pursuant to this Agreement or
any Right Certificate or as to whether any Preferred Shares will, when issued,
be validly authorized and issued, fully paid and nonassessable.

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

(g)           The
Rights Agent is hereby authorized and directed to accept instructions with
respect to the performance of its duties hereunder from any one of the Chairman
of the Board, the Chief Executive Officer, the President, the Chief Financial
Officer, any Vice President, the Secretary or the Treasurer of the Company, and
to apply to such officers for advice or instructions in connection with its
duties, and it shall not be liable for any action taken or 

 24
 

 

suffered by it in good faith in accordance with instructions of any
such officer or for any delay in acting while waiting for those
instructions.  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 or omitted
by the Rights Agent with respect to its duties or obligations under this
Agreement and the date on and/or after which such action shall be taken or
omitted and the Rights Agent shall not be liable for any action taken or
omitted in accordance with a proposal included in any such application on or
after the date specified therein (which date shall not be less than three
Business Days after the date indicated in such application unless any such
officer shall have consented in writing to an earlier date) unless, prior to
taking or omitting any such action, the Rights Agent has received written
instructions in response to such application specifying the action to be taken
or omitted.

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

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

(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 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 Right Certificate surrendered to the Rights Agent for
exercise or transfer, the certificate attached to the form of assignment or
form of election to purchase, as the case may be, has not been executed, the
Rights Agent shall not take any further action with respect to such requested
exercise of 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 for the Common Shares or Preferred Shares by
registered or certified mail, and to the holders of the Right Certificates 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 for the Common Shares or Preferred Shares by registered
or certified mail, and to the holders of the Right Certificates by first-class
mail.  If the Rights Agent shall resign
or be removed or shall otherwise become incapable of acting, the Company shall
appoint a 

 25
 

 

successor to the Rights Agent.  If the Company shall fail to make such
appointment within a period of 30 days after giving notice of such removal or
after it has been notified in writing of such resignation or incapacity by the
resigning or incapacitated Rights Agent or by the holder of a Right Certificate
(who shall, with such notice, submit his Right Certificate for inspection by
the Company), then the registered holder of any Right Certificate may apply to
any court of competent jurisdiction for the appointment of a new Rights
Agent.  Any successor Rights Agent,
whether appointed by the Company or by such a court, shall be either (a) a
corporation, business trust or limited liability company organized and doing
business under the laws of the United States or of any other state of the
United States that is authorized under such laws to exercise corporate trust or
stock transfer powers and is subject to supervision or examination by federal
or state authority and that has at the time of its appointment as Rights Agent
a combined capital and surplus of at least $50 million or (b) a direct or
indirect wholly owned Subsidiary of such an entity or its wholly-owning
parent.  After appointment, the successor
Rights Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent without
further act or deed; but the predecessor Rights Agent shall deliver and
transfer to the successor Rights Agent any property at the time held by it
hereunder, and execute and deliver any further assurance, conveyance, act or
deed necessary for the purpose.  Not
later than the effective date of any such appointment the Company shall file
notice thereof in writing with the predecessor Rights Agent and each transfer
agent for the Common Shares or Preferred Shares, and mail a notice thereof in
writing to the registered holders of the Right Certificates.  Failure to give any notice provided for in
this Section 21, however, or any
defect therein, shall not affect the legality or validity of the resignation or
removal of the Rights Agent or the appointment of the successor Rights Agent,
as the case may be.

SECTION 22.             Issuance
Of New Right Certificates. 
Notwithstanding any of the provisions of this Agreement or of the Rights
to the contrary, the Company may, at its option, issue new Right Certificates
evidencing Rights in such form as may be approved by its Board of Directors to
reflect any adjustment or change in the Purchase Price and the number or kind
or class of shares or other securities or property purchasable under the Right
Certificates made in accordance with the provisions of this Agreement.  In addition, in connection with the issuance
or sale of Common Shares following the Distribution Date and prior to the
earlier of the Redemption Date and the Final Expiration Date, the Company (a)
shall with respect to Common Shares so issued or sold pursuant to the exercise
of stock options or under any employee plan or arrangement in existence prior
to the Distribution Date, or upon the exercise, conversion or exchange of
securities, notes or debentures issued by the Company and in existence prior to
the Distribution Date, and (b) may, in any other case, if deemed necessary or
appropriate by the Board of Directors, issue Right Certificates representing
the appropriate number of Rights in connection with such issuance or sale; provided, however, that (i) the Company shall not be
obligated to issue any such Right Certificates if, and to the extent that, the
Company shall be advised by counsel that such issuance would create a
significant risk of material adverse tax consequences to the Company or the
Person to whom such Right Certificate would be issued, and (ii) no Right
Certificate shall be issued if, and to the extent that the appropriate
adjustment shall otherwise have been made in lieu of the issuance thereof.

 26
 

 

SECTION 23.             Redemption.

(a)           The Rights may be redeemed by action of
the Board of Directors pursuant to Section 23(b) hereof and shall not be
redeemed in any other manner.

(b)

(i)            The Board of Directors may, at its
option, at any time prior to the earlier of (A) such time as any Person becomes
an Acquiring Person, or (B) the Final Expiration Date, redeem all but not less
than all of the then outstanding Rights at a redemption price of $0.01 per
Right, appropriately adjusted to reflect any stock split, stock dividend or
similar transaction occurring after the date hereof (such redemption price
being hereinafter referred to as the “Redemption Price”), and the Company may,
at its option, pay the Redemption Price in Common Shares (based on the “current
per-share market price,” as such term is defined in Section 11(d) hereof,
of the Common Shares at the time of redemption), cash or any other form of
consideration deemed appropriate by the Board of Directors.  The redemption of the Rights by the Board of
Directors may be made effective at such time, on such basis and subject to such
conditions as the Board of Directors in its sole discretion may establish.  Notwithstanding anything contained in this
Agreement to the contrary, the Rights shall not be exercisable pursuant to
Section 11(a)(ii) hereof prior to the expiration or termination of the Company’
s right of redemption under this Section 23(b)(i).

(ii)           In addition, the Board of Directors may,
at its option, at any time after the time a Person becomes an Acquiring Person
and after the expiration of any period during which the holder of Rights may
exercise the rights under Section 11(a)(ii) hereof but prior to any event
described in clause (x), (y) or (z) of the first sentence of Section 13
hereof, redeem all but not less than all of the then outstanding Rights at the
Redemption Price (x) in connection with any merger, consolidation or sale or
other transfer (in one transaction or in a series of related transactions) of
assets or earning power aggregating 50% or more of the assets or earning power
of the Company and its subsidiaries (taken as a whole) in which all holders of
Common Shares are treated alike and not involving (other than as a holder of
Common Shares being treated like all other such holders) an Interested
Stockholder or a Transaction Person or (y)(A) if and for so long as the
Acquiring Person is not thereafter the Beneficial Owner of 20% or more of the
then outstanding Common Shares, and (B) at the time of redemption no other
Persons are Acquiring Persons.

(c)           Immediately upon the action of the Board
of Directors ordering the redemption of the Rights pursuant to
Section 23(b) hereof, and without any further action and without any
notice, the right to exercise the Rights will terminate and the only right
thereafter of the holders of Rights shall be to receive the Redemption
Price.  The Company shall promptly give
public notice of any such redemption; provided,
however, that the failure to give, or any defect in, any such notice
shall not affect the validity of such redemption.  Within 10 days after such action of the Board
of Directors ordering the redemption of the Rights pursuant to
Section 23(b) hereof, the Company shall mail a notice of redemption to all
the holders of the then outstanding Rights at their last addresses as they
appear upon the registry books of the Rights Agent or, prior to the
Distribution Date, on the registry books of the transfer agent for the Common
Shares, provided, however, that
failure to give, or any defect in, any such notice shall not affect the
validity of such 

 27
 

 

redemption. 
Any notice that is mailed in the manner herein provided shall be deemed given,
whether or not the holder receives the notice. 
Each such notice of redemption will state the method by which the
payment of the Redemption Price will be made. 
Neither the Company nor any of its Affiliates or Associates may redeem,
acquire or purchase for value any Rights at any time in any manner other than
that specifically set forth in this Section 23 or in Section 24
hereof, and other than in connection with the purchase of Common Shares prior
to the Distribution Date.

(d)           The Company may, at its option,
discharge all of its obligations with respect to any redemption of the Rights
by (i) issuing a press release announcing the manner of redemption of the
Rights and (ii) mailing payment of the Redemption Price to the registered
holders of the Rights at their last addresses as they appear on the registry
books of the Rights Agent or, prior to the Distribution Date, on the registry
books of the transfer agent for the Common Shares, and upon such action, all
outstanding Right Certificates shall be null and void without any further
action by the Company.

SECTION 24.             Exchange.

(a)           The Board of Directors may, at its
option, at any time after any Person becomes an Acquiring Person, exchange all
or part of the then outstanding and exercisable Rights (which shall not include
Rights that have become void pursuant to the provisions of
Section 11(a)(ii) hereof) for Common Shares at an exchange ratio of one
Common Share per Right, appropriately adjusted to reflect any stock split,
stock dividend or similar transaction occurring after the date hereof (such
exchange ratio being hereinafter referred to as the “Exchange Ratio”).  Notwithstanding the foregoing, the Board of
Directors shall not be empowered to effect such exchange at any time after any
Person (other than the Company, any Subsidiary of the Company, any employee
benefit plan of the Company or any such Subsidiary, or any entity holding
Common Shares for or pursuant to the terms of any such plan), together with all
Affiliates and Associates of such Person, becomes the Beneficial Owner of 50%
or more of the Common Shares then outstanding.

(b)           Immediately upon the action of the Board
of Directors ordering the exchange of any Rights pursuant to Section 24(a)
hereof and without any further action and without any notice, the right to
exercise such Rights shall terminate and the only right thereafter of a holder
of such Rights shall be to receive that number of Common Shares equal to the
number of such Rights held by such holder multiplied by the Exchange Ratio.  The Company shall promptly give public notice
of any such exchange; provided, however,
that the failure to give, or any defect in, such notice shall not affect the
validity of such exchange.  The Company
promptly shall mail a notice of any such exchange to all of the holders of such
Rights at their last addresses as they appear upon the registry books of the
Rights Agent; provided, however,
that the failure to give, or any defect in, such notice shall not affect the
validity of such exchange.  Any notice
that is mailed in the manner herein provided shall be deemed given, whether or
not the holder receives the notice.  Each
such notice of exchange will state the method by which the exchange of the
Common Shares for Rights will be effected and, in the event of any partial
exchange, the number of Rights that will be exchanged.  Any partial exchange shall be effected pro
rata based on the number of Rights (other than Rights that have become void
pursuant to the provisions of Section 11(a)(ii) hereof) held by each holder
of Rights.

 28
 

 

(c)           In lieu of issuing Common Shares in
accordance with Section 24(a) hereof, the Company may, if a majority of
the Board of Directors then in office determines that such action is necessary
or appropriate and not contrary to the interests of the holders of Rights,
elect to (and, in the event that there are not sufficient treasury shares and
authorized but unissued Common Shares to permit any exchange of the Rights in
accordance with Section 24(a) hereof, the Company shall) take all such action
as may be necessary to authorize, issue or pay, upon the exchange of the
Rights, cash, property, Common Shares, other securities or any combination
thereof having an aggregate value equal to the value of the Common Shares that
otherwise would have been issuable pursuant to Section 24(a) hereof, which
aggregate value shall be determined by a nationally recognized investment
banking firm selected by a majority of the Board of Directors then in
office.  For purposes of the preceding
sentence, the value of the Common Shares shall be determined pursuant to
Section 11(d) hereof.  Any election
pursuant to this Section 24(c) by the Board of Directors must be made by
resolution within 60 days following the date on which the event described in
Section 11(a)(ii) hereof shall have occurred.  Following the occurrence of the event
described in Section 11(a)(ii) hereof, a majority of the Board of
Directors then in office may suspend the exercisability of the Rights for a period
of up to 60 days following the date on which the event described in
Section 11(a)(ii) hereof shall have occurred to the extent that such
directors have not determined whether to exercise their rights of exchange
under this Section 24(c).  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.

(d)           The Company shall not be required to
issue fractions of Common Shares or to distribute certificates that evidence
fractional Common Shares.  In lieu of
such fractional Common Shares, the Company shall pay to the registered holders
of the Right Certificates with regard to which such fractional Common Shares
would otherwise be issuable an amount in cash equal to the same fraction of the
current market value of a whole Common Share. 
For the purposes of this Section 24(d), the current market value of
a whole Common Share shall be the closing price of a Common Share (as
determined pursuant to the second sentence of Section 11(d)(i) hereof) for
the Trading Day immediately after the date of the first public announcement by
the Company that an exchange is to be effected pursuant to this
Section 24.

SECTION 25.             Notice Of
Certain Events.

(a)           In case the Company shall propose (i) to
pay any dividend payable in stock of any class to the holders of its Preferred
Shares or to make any other distribution to the holders of its Preferred Shares
(other than a regular quarterly cash dividend), (ii) to offer to the holders of
its Preferred Shares rights or warrants to subscribe for or to purchase any
additional Preferred Shares or shares of stock of any class or any other
securities, rights or options, (iii) to effect any reclassification of its
Preferred Shares (other than a reclassification involving only the subdivision of
outstanding Preferred Shares), (iv) to effect any consolidation or merger into
or with, or to effect any sale or other transfer (or to permit one or more of
its Subsidiaries to effect any sale or other transfer), in one or more
transactions, of 50% or more of the assets or earning power of the Company and
its Subsidiaries (taken as a whole), to any other Person, (v) to effect the
liquidation, dissolution or winding up of the Company, or (vi) to declare or
pay any dividend on the Common Shares payable in Common Shares or to effect a
subdivision, combination or consolidation of the Common Shares (by
reclassification or otherwise than by payment of dividends in Common Shares),
then, in each such case, the Company shall give to each holder of 

 29
 

 

a Right Certificate, in accordance with
Section 26 hereof, a notice of such proposed action, which shall specify
the record date for the purpose of such stock dividend, or distribution of
rights or warrants, or the date on which such reclassification, consolidation,
merger, sale, transfer, liquidation, dissolution, or winding up is to take
place and the date of participation therein by the holders of the Common Shares
and/or the Preferred Shares, if any such date is to be fixed, and such notice
shall be so given in the case of any action covered by clause (i) or (ii) above
at least 10 days prior to the record date for determining holders of the
Preferred Shares for purposes of such action, and in the case of any such other
action, at least 10 days prior to the date of the taking of such proposed
action or the date of participation therein by the holders of the Common Shares
and/or the Preferred Shares, whichever shall be the earlier.

(b)           In case the event set forth in
Section 11(a)(ii) hereof shall occur, then the Company shall as soon as
practicable thereafter give to each holder of a Right Certificate, in
accordance with Section 26 hereof, a notice of the occurrence of such
event, which notice shall describe the event and the consequences of the event
to holders of Rights under Section 11(a)(ii) hereof.

SECTION 26.             Notices.  Notices or demands authorized by this
Agreement to be given or made by the Rights Agent or by the holder of any Right
Certificate to or on the Company shall be sufficiently given or made if sent by
first-class mail, postage prepaid, addressed (until another address is filed in
writing with the Rights Agent) as follows:

Jos. A. Bank Clothiers,
Inc.

500 Hanover Pike

Hampstead, MD 21074

Attention: 
General Counsel

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

Cooley Godward Kronish
LLP

1114 Avenue of the
Americas

New York, NY 10036

Attention: 
Scott L. Kaufman, Esq.

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

Continental Stock
Transfer & Trust Company

17 Battery Place

New York, NY 10004

Attention: 
Compliance Department

Notices or demands authorized by this Agreement to be given or made by
the Company or the Rights Agent to the holder of any Right Certificate shall be
sufficiently given or made if 

 30
 

 

sent by first-class mail, postage prepaid,
addressed to such holder at the address of such holder as shown on the registry
books of the Company.

SECTION 27.             Supplements
And Amendments.  Prior
to the Distribution Date, the Company and the Rights Agent shall, if the
Company so directs, supplement or amend any provision of this Agreement without
the approval of any holders of the Rights. 
From and after the Distribution Date, the Company and the Rights Agent
shall, if the Company so directs, from time to time supplement or amend any
provision of this Agreement without the approval of any holders of Right
Certificates in order to (i) cure any ambiguity, (ii) correct or supplement any
provision contained herein that may be defective or inconsistent with any other
provisions herein, or (iii) change any other provisions with respect to the
Rights that the Company may deem necessary or desirable; provided,
however, that no such supplement or amendment shall be made that
would adversely affect the interests of the holders of Rights (other than the
interests of an Acquiring Person or its Affiliates or Associates).  Any supplement or amendment adopted during
any period after any Person has become an Acquiring Person but prior to the
Distribution Date shall become null and void unless such supplement or
amendment could have been adopted by the Company from and after the
Distribution Date.  Any such supplement
or amendment shall be evidenced by a writing signed by the Company and the
Rights Agent.  Upon delivery of a
certificate from an appropriate officer of the Company that states that the
proposed supplement or amendment is in compliance with the terms of this
Section 27, the Rights Agent shall execute such supplement or amendment
unless the Rights Agent shall have determined in good faith that such
supplement or amendment would adversely affect its interest under this
Agreement.  Prior to the Distribution
Date, the interests of the holders of Rights shall be deemed coincident with
the interests of the holders of Common Shares.

SECTION 28.             Determination
And Actions By The Board Of Directors, Etc.  For all purposes of this Agreement, any
calculation of the number of Common Shares outstanding at any particular time,
including for purposes of determining the particular percentage of such
outstanding Common Shares or any other securities 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 as
in effect on the date of this Agreement. 
The Board of Directors shall have the exclusive power and authority to
administer this Agreement and to exercise all rights and powers specifically
granted to the Board, or the Company, or as may be necessary or advisable in
the administration of this Agreement, including without limitation, the right
and power to (i) interpret the provisions of this Agreement, and (ii) make all
determinations deemed necessary or advisable for the administration of this
Agreement (including a determination to redeem or not redeem the Rights or to
amend the Agreement).  All such actions,
calculations, interpretations and determinations that are done or made by the
Board in good faith, shall (x) be final, conclusive and binding on the Rights
Agent and the holders of the Rights, and (y) not subject the Board to any
liability to the holders of the Rights.

SECTION 29.             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 30.             Benefits
Of This Agreement. 
Nothing in this Agreement shall be construed to give to any person or
corporation other than the Company, the Rights Agent and the 

 31
 

 

registered holders of the Right Certificates (and,
prior to the Distribution Date, the Common Shares) any legal or equitable
right, remedy or claim under this Agreement; but this Agreement shall be for
the sole and exclusive benefit of the Company, the Rights Agent and the
registered holders of the Right Certificates (and, prior to the Distribution
Date, the Common Shares).

SECTION 31.             Severability.  If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated.

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

SECTION 33.             Counterparts.  This Agreement may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

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

[Signature Page Follows]

 32
 

 

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

	
  Attest:

  	
   

  	
  Jos. A. Bank Clothiers,
  Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
       /s/ Charles D. Frazer

  	
   

  	
   

  	
  By:

  	
      /s/ David E. Ullman

  	
   

  
	
  Name:  Charles
  D. Frazer 

  	
   

  	
  Name:  David
  E. Ullman

  
	
  Title:   Secretary

  	
   

  	
  Title:

  	
  Executive Vice President — Chief 

  
	
   

  	
   

  	
   

  	
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
  Continental Stock Transfer
  & Trust

  Company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
      /s/ Thomas Jennings

  	
   

  	
   

  	
  By:

  	
      /s/ William F. Seegraber

  	
   

  
	
  Name: Thomas Jennings 

  	
   

  	
  Name: William F. Seegraber 

  
	
  Title: Asst. Secretary

  	
   

  	
  Title: Vice President

  
									

 

 33

FORM OF

CERTIFICATE OF DESIGNATION

OF

SERIES A JUNIOR PARTICIPATING PREFERRED
STOCK

(Exhibit A to Rights Agreement)

(Pursuant to Section 151 of the

Delaware General Corporation Law)

JOS. A. BANK CLOTHIERS, INC.,
a corporation organized and existing under the General Corporation
Law of the State of Delaware (hereinafter called the “Company”), hereby
certifies that the following resolutions were adopted by the Board of Directors
of the Corporation as required by Section 151 of the General Corporation
Law pursuant to an action by unanimous written consent of the Board of
Directors:

RESOLVED, that pursuant to the authority
granted to and vested in the Company’s Board of Directors in accordance with
the provisions of the Company’s Restated Certificate of Incorporation, as
amended (the “Charter”), the Board of Directors hereby creates a series of
Junior Preferred Stock and hereby states the designation and number of shares,
and fixes the designations and the powers, preferences and rights, and the
qualifications, limitations and restrictions thereof (in addition to the
provisions set forth in the Charter, which are applicable to all classes and
series of the Company’s preferred stock), as follows:

Series A
Junior Participating Preferred Stock:

Section
1.              Designation and
Amount.  Four Hundred
Fifty Thousand (450,000) shares of Preferred Stock, par value $1.00 per share,
are designated “Series A Junior Participating Preferred Stock” with the
designations and the powers, preferences and rights, and the qualifications, limitations
and restrictions specified herein (the “Junior Preferred Stock”).  Such number of shares may be increased or
decreased by resolution of the Board of Directors; provided, that no decrease shall reduce the number of shares
of Junior Preferred Stock to a number less than the number of shares then
outstanding plus the number of shares reserved for issuance upon the exercise
of outstanding options, rights or warrants or upon the conversion of any
outstanding securities issued by the Company convertible into Junior Preferred
Stock.

 A-1
 

Section
2.              Dividends and
Distributions.

(A)          Subject
to the rights of the holders of any shares of any series of the Company’s
preferred stock, par value $1.00 per share (“Preferred Stock”), or any similar
stock, ranking prior and superior to the Junior Preferred Stock with respect to
dividends, the holders of shares of Junior Preferred Stock, in preference to
the holders of the Company’s common stock, par value $0.01 per share (“Common
Stock”), and of any other junior stock, shall be entitled to receive, when, as
and if declared by the Board of Directors out of funds legally available for
the purpose, quarterly dividends payable in cash on the first day of April,
July, October and January in each year (each such date being referred to herein
as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly
Dividend Payment Date after the first issuance of a share or fraction of a
share of Junior Preferred Stock, in an amount per share (rounded to the nearest
cent) equal to the greater of (a) $1.00 or (b) subject to the provision for
adjustment hereinafter set forth, 100 times the aggregate per share amount of
all cash dividends, and 100 times the aggregate per share amount (payable in
kind) of all non-cash dividends or other distributions, other than a dividend
payable in shares of Common Stock or a subdivision of the outstanding shares of
Common Stock (by reclassification or otherwise), declared on the Common Stock
since the immediately preceding Quarterly Dividend Payment Date or, with
respect to the first Quarterly Dividend Payment Date, since the first issuance
of any share or fraction of a share of Junior Preferred Stock.  In the event the Company shall at any time
declare or pay any dividend on the Common Stock payable in shares of Common
Stock, or effect a subdivision or combination or consolidation of the
outstanding shares of Common Stock (by reclassification or otherwise than by
payment of a dividend in shares of Common Stock) into a greater or lesser
number of shares of Common Stock, then in each such case, the amount to which
holders of shares of Junior Preferred Stock were entitled immediately prior to
such event under clause (b) of the preceding sentence shall be adjusted by
multiplying such amount by a fraction, the numerator of which is the number of
shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

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

(C)          Dividends
shall begin to accrue and be cumulative on outstanding shares of Junior
Preferred Stock from the Quarterly Dividend Payment Date next preceding the date
of issue of such shares, unless the date of issue of such shares is prior to
the record date for the first Quarterly Dividend Payment Date, in which case
dividends on such shares shall begin to accrue from the date of issue of such
shares, or unless the date of issue is a Quarterly Dividend Payment Date or is
a date after the record date for the determination of holders of shares of
Junior 

 A-2
 

Preferred Stock entitled to receive a quarterly dividend and before
such Quarterly Dividend Payment Date, in either of which events such dividends
shall begin to accrue and be cumulative from such Quarterly Dividend Payment
Date.  Accrued but unpaid dividends shall
not bear interest.  Dividends paid on the
shares of Junior Preferred Stock in an amount less than the total amount of
such dividends at the time accrued and payable on such shares shall be
allocated pro rata on a share-by-share basis among all such shares at the time
outstanding.  The Board of Directors may
fix a record date for the determination of holders of shares of Junior
Preferred Stock entitled to receive payment of a dividend or distribution
declared thereon, which record date shall be not more than 60 days prior to the
date fixed for the payment thereof.

Section
3.              Voting Rights.  The holders of shares of
Junior Preferred Stock shall have the following voting rights:

(A)          Subject
to the provision for adjustment hereinafter set forth, each share of Junior
Preferred Stock shall entitle the holder thereof to 100 votes on all matters
submitted to a vote of the Company’s stockholders (the “Stockholders”).  In the event the Company shall at any time
declare or pay any dividend on the Common Stock payable in shares of Common
Stock, or effect a subdivision or combination or consolidation of the
outstanding shares of Common Stock (by reclassification or otherwise than by
payment of a dividend in shares of Common Stock) into a greater or lesser
number of shares of Common Stock, then in each such case the number of votes
per share to which holders of shares of Junior Preferred Stock were entitled
immediately prior to such event shall be adjusted by multiplying such number by
a fraction, the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that were outstanding immediately prior to
such event.

(B)          Except
as otherwise provided herein, in any other Certificate of Designation creating
a series of Preferred Stock or any similar stock, or by law, the holders of
shares of Junior Preferred Stock and the holders of shares of Common Stock and
any other capital stock having general voting rights shall vote together as one
class on all matters submitted to a vote of the Stockholders.

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

Section
4.              Certain Restrictions.

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

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

 A-3
 

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

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

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

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

Section
5.              Reacquired Shares.  Any shares of Junior Preferred
Stock purchased or otherwise acquired by the Company in any manner whatsoever
shall be retired and cancelled promptly after the acquisition thereof.  All such shares shall upon their cancellation
become authorized but unissued shares of Preferred Stock and may be reissued as
part of a new series of Preferred Stock subject to the conditions and
restrictions on issuance set forth herein, in the Amended and Restated
Certificate of Incorporation, or in any other Certificate of Designation
creating a series of Preferred Stock or any similar stock or as otherwise
required by law.

Section
6.              Liquidation, Dissolution
or Winding Up.  Upon
the Company’s liquidation, dissolution or winding up, no distribution shall be
made (1) to the holders of shares of stock ranking junior (either as to
dividends or upon liquidation, dissolution or winding up) to the Junior
Preferred Stock unless, prior thereto, the holders of shares of Junior
Preferred Stock shall have received $100 per share, plus an amount equal to
accrued and unpaid dividends and distributions thereon, whether or not
declared, to the date of such payment, provided that the holders of shares of
Junior Preferred Stock shall be entitled to receive an aggregate amount per
share, subject to the provision for adjustment hereinafter set forth, equal to
100 times the aggregate amount to be distributed per share to holders of shares
of Common Stock, or (2) to the holders of shares of stock ranking on a parity
(either as to dividends or upon liquidation, dissolution or winding up) with
the Junior Preferred Stock, except distributions made ratably on the Junior
Preferred Stock and all such parity stock in proportion to the total amounts to
which 

 A-4
 

the holders of all such
shares are entitled upon such liquidation, dissolution or winding up.  In the event the Company shall at any time
declare or pay any dividend on the Common Stock payable in shares of Common
Stock, or effect a subdivision or combination or consolidation of the outstanding
shares of Common Stock (by reclassification or otherwise than by payment of a
dividend in shares of Common Stock) into a greater or lesser number of shares
of Common Stock, then in each such case the aggregate amount to which holders
of shares of Junior Preferred Stock were entitled immediately prior to such
event under the proviso in clause (1) of the preceding sentence shall be
adjusted by multiplying such amount by a fraction the numerator of which is the
number of shares of Common Stock outstanding immediately after such event and
the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

Section
7.              Consolidation, Merger,
Etc.  In case the
Company shall enter into any consolidation, merger, combination or other
transaction in which the shares of Common Stock are exchanged for or changed
into other stock or securities, cash and/or any other property, then in any
such case each share of Junior Preferred Stock shall at the same time be
similarly exchanged or changed into an amount per share, subject to the
provision for adjustment hereinafter set forth, equal to 100 times the
aggregate amount of stock, securities, cash and/or any other property (payable
in kind), as the case may be, into which or for which each share of Common
Stock is changed or exchanged.  In the
event the Company shall at any time declare or pay any dividend on the Common
Stock payable in shares of Common Stock, or effect a subdivision or combination
or consolidation of the outstanding shares of Common Stock (by reclassification
or otherwise than by payment of a dividend in shares of Common Stock) into a
greater or lesser number of shares of Common Stock, then in each such case the
amount set forth in the preceding sentence with respect to the exchange or
change of shares of Junior Preferred Stock shall be adjusted by multiplying
such amount by a fraction, the numerator of which is the number of shares of
Common Stock outstanding immediately after such event and the denominator of
which is the number of shares of Common Stock that were outstanding immediately
prior to such event.

Section
8.              No Redemption.  The shares of Junior
Preferred Stock shall not be redeemable.

Section
9.              Rank.  The Junior Preferred Stock
shall rank, with respect to the payment of dividends and the distribution of
assets, junior to all series of any other class of Preferred Stock.

Section
10.            Amendment.  The Company’s Restated
Certificate of Incorporation, as amended, shall not be amended in any manner
which would materially alter or change the powers, preferences or special
rights of the Junior Preferred Stock so as to affect them adversely without the
affirmative vote of the holders of at least two-thirds of the outstanding
shares of Junior Preferred Stock, voting together as a single class.

[Signature Page Follows]

 A-5
 

IN WITNESS WHEREOF,  the
undersigned have executed this certificate as of                    ,
2007.

 

 

	
  

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 A-6

FORM OF RIGHT CERTIFICATE

(Exhibit B to Rights Agreement)

	
  Certificate No. R-

  	
  Rights

  

 

NOT EXERCISABLE AFTER SEPTEMBER 20, 2017, OR EARLIER
IF REDEMPTION OR EXCHANGE OCCURS.  THE
RIGHTS ARE SUBJECT TO REDEMPTION AT $0.01 PER RIGHT AND TO EXCHANGE ON THE
TERMS SET FORTH IN THE RIGHTS AGREEMENT.

RIGHT CERTIFICATE

JOS. A. BANK CLOTHIERS, INC.

This certifies that                               
or registered assigns, is the registered owner of the number of Rights set
forth above, each of which entitles the owner thereof, subject to the terms,
provisions and conditions of the Rights Agreement, dated as of September 6,
2007 (the “Rights Agreement”), between Jos. A. Bank Clothiers, Inc., a Delaware
corporation (the “Company”), and Continental Stock Transfer & Trust Company
(the “Rights Agent”), to purchase from the Company at any time after the
Distribution Date (as such term is defined in the Rights Agreement) and prior
to 5:00 pm, New York City time, on September 20, 2017, at the office of the
Rights Agent designated for such purpose, or at the office of its successor as
Rights Agent, one one-hundredth of a fully paid non-assessable share of the
Company’s Series A Junior Participating Preferred Stock, par value $1.00
per share (the “Preferred Shares”), at a purchase price of $200.00 per one
one-hundredth of a Preferred Share (the “Purchase Price”), upon presentation
and surrender of this Right Certificate with the Form of Election to Purchase
duly executed.  The number of Rights
evidenced by this Right Certificate (and the number of one one-hundredths of a
Preferred Share which may be purchased upon exercise hereof) set forth above,
and the Purchase Price set forth above, are the number and Purchase Price as of
September 20, 2007 based on the Preferred Shares as constituted at such date.

From and after the time
any Person becomes an Acquiring Person (as such terms are defined in the Rights
Agreement), if the Rights evidenced by this Right Certificate are beneficially
owned by (i) an Acquiring Person or an Affiliate or Associate of any such
Acquiring Person (as such terms are defined in the Rights Agreement),
(ii) a transferee of any such Acquiring Person, Associate or Affiliate who
becomes a transferee after the Acquiring Person becomes such, or
(iii) under certain circumstances specified in the Rights Agreement, a
transferee of any such Acquiring Person, Associate or Affiliate who becomes a
transferee prior to or concurrently with the 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 from and after the time
any Person becomes an Acquiring Person.

As provided in the Rights
Agreement, the Purchase Price and the number of one one-hundredths of a
Preferred Share which may be purchased upon the exercise of the Rights 

 B-1
 

evidenced by this
Right Certificate are subject to modification and adjustment upon the happening
of certain events.

This Right Certificate is
subject to all of the terms, provisions and conditions of the Rights Agreement,
as amended from time to time, which terms, provisions and conditions are hereby
incorporated herein by reference and made a part hereof and to which Rights
Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Right Certificates.  Copies of the Rights Agreement are on file at
the Company’s principal executive offices and at the Rights Agent’s offices
located at 17 Battery Place, New York, NY 10004.

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

Subject to the provisions
of the Rights Agreement, the Rights evidenced by this Certificate (i) may be
redeemed by the Company at a redemption price of $0.01 per Right or (ii) may be
exchanged in whole or in part for shares of the Company’s Common Stock, par
value $0.01 per share, or, upon circumstances set forth in the Rights
Agreement, cash, property or other securities of the Company, including
fractions of a share of Preferred Stock.

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

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

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

 B-2
 

WITNESS the
facsimile signature of the proper officers of the Company dated               ,
20  .

	
  ATTEST:  

  	
   

  	
  Jos. A. Bank Clothiers, Inc.  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name: 

  	
   

  	
  Name:

  
	
  Title:

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  COUNTERSIGNED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CONTINENTAL STOCK TRANSFER & TRUST 

  	
   

  	
   

  
	
  COMPANY, as Rights Agent  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Officer 

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  	
   

  
						

 

 B-3

FORM OF REVERSE SIDE OF RIGHT CERTIFICATE

 

FORM OF ASSIGNMENT

(To be executed by the
registered holder if such

holder desires to transfer the Right Certificate.)

FOR VALUE RECEIVED ________________________________________
hereby sells, assigns and transfers unto

 

 

	
  

  
	
  (Please print
  name and address of transferee)

  

 

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

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
				

 

 

 

 

 

Signature Guaranteed:

 

SIGNATURES must be
guaranteed by an “Eligible Guarantor Institution” as defined in Rule 17Ad-15
promulgated under the Securities Exchange Act of 1934, as amended.

The undersigned hereby
certifies that (1) the Rights evidenced by this Right Certificate are not
being sold, assigned or transferred by or on behalf of a Person who is or was
an Acquiring Person, an Interested Stockholder or an Affiliate or Associate
thereof (as such terms are defined in the Rights Agreement); and (2) after
due inquiry and to the best of the knowledge of the  undersigned, the undersigned did not acquire
the Rights evidenced by this Right Certificate from any Person who is or was an
Acquiring Person, an Interested Stockholder, or an Affiliate or Associate thereof.

 

	
  

  	
   

  
	
   

  	
  Signature

  

 

 B-4

FORM OF ELECTION TO PURCHASE

(To
be executed if holder desires to exercise

Rights represented by the Right Certificate.)

 

To Continental Stock Transfer & Trust Company:

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

Please insert social security

	
  or other identifying number:

  	
   

  	
   

  

 

 

	
  

  
	
  (Please print
  name and address)

  

 

 

	
  

  

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

Please insert social security

	
  or other identifying number:

  	
   

  	
   

  

 

 

	
  

  
	
  (Please print
  name and address)

  

 

 

	
  

  

 

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
				

 

 B-5
 

Signature Guaranteed:

Signatures must be
guaranteed by an “Eligible Guarantor Institution” as defined in Rule 17Ad-15
promulgated under the Securities Exchange Act of 1934, as amended.

The undersigned hereby
certifies that (1) the Rights evidenced by this Right Certificate are not
beneficially owned by nor are they being exercised on behalf of an Acquiring
Person, an Interested Stockholder or an Affiliate or Associate thereof (as such
terms are defined in the Rights Agreement); and (2) after due inquiry and
to the best of the knowledge of the undersigned, the undersigned did not
acquire the Rights evidenced by this Right Certificate from any Person who is
or was an Acquiring Person, an Interested Stockholder, or an Affiliate or
Associate thereof.

	
  

  	
   

  
	
   

  	
  Signature

  

 

NOTICE

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

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

 B-6

JOS.
A. BANK CLOTHIERS, INC.

SUMMARY
OF RIGHTS TO PURCHASE

PREFERRED SHARES

(EXHIBIT C TO RIGHTS AGREEMENT)

On September 5, 2007, the Board of Directors of JOS. A. BANK CLOTHIERS, INC.
(the “Company”) declared a dividend of one preferred share purchase right (a “Right”)
for each outstanding share of common stock, par value $0.01 per share (the “Common
Shares”), of the Company.  The dividend
is effective as of September 20, 2007 (the “Record Date”) with respect to the
stockholders of record on that date.  The
Rights will also attach to new Common Shares issued after the Record Date.  Each Right entitles the registered holder to
purchase from the Company one one-hundredth of a share of Series A Junior
Participating Preferred Stock, par value $1.00 per share (the “Preferred Shares”),
of the Company at a price of $200.00 per one one-hundredth of a Preferred
Share (the “Purchase Price”), subject to adjustment.  Each Preferred Share is designed to be the
economic equivalent of 100 Common Shares. 
The description and terms of the Rights are set forth in a Rights
Agreement dated as of September 6, 2007 (the “Rights Agreement”), between the
Company and Continental Stock Transfer & Trust Company (the “Rights Agent”).

DETACHMENT
AND TRANSFER OF RIGHTS

Initially, the Rights will be evidenced by the stock
certificates representing Common Shares then outstanding, and no separate Right
Certificates will be distributed.  Until
the earlier to occur of (i) 10 days following a public announcement that a
person or group of affiliated or associated persons, has become an “Acquiring
Person” (as such term is defined in the Rights Agreement) or (ii) 10 business
days (or such later date as the Board may determine) following the commencement
of, or announcement of an intention to make, a tender offer or exchange offer
which would result in the beneficial ownership by an Acquiring Person of 20% or
more of the outstanding Common Shares (the earlier of such dates being called
the “Distribution Date”), the Rights will be evidenced, with respect to any of
the Common Share certificates outstanding as of the Record Date, by such Common
Share certificate.  In general, an “Acquiring
Person” is a person, the affiliates or associates of such person, or a group,
which has acquired beneficial ownership of 20% or more of the outstanding
Common Shares.

The Rights Agreement provides that, until the
Distribution Date (or earlier redemption or expiration of the Rights), the
Rights will be transferable with and only with the Common Shares.  Until the Distribution Date (or earlier
redemption or expiration of the Rights), new Common Share certificates issued
after the Record Date upon transfer or new issuance of Common Shares will
contain a notation incorporating the Rights Agreement by reference.  Until the Distribution Date (or earlier
redemption or expiration of the Rights) the surrender or transfer of any
certificates for Common Shares outstanding as of the Record Date, even without
such notation or a copy of this Summary of Rights being attached thereto, will
also constitute the transfer of the Rights associated with the Common Shares
represented by such certificate.  As soon
as 

 C-1
 

practicable following the Distribution Date, separate
certificates evidencing the Rights (“Right Certificates”) will be mailed to holders
of record of the Common Shares as of the close of business on the Distribution
Date and such separate Right Certificates alone will evidence the Rights.

EXERCISABILITY OF RIGHTS

The Rights are not exercisable until the Distribution
Date.  The Rights will expire on
September 20, 2017 (the “Final Expiration Date”), unless the Final Expiration
Date is extended or unless the Rights are earlier redeemed or exchanged by the
Company, in each case as described below. 
Until a Right is exercised, the holder thereof, as such, will have no
rights as a stockholder of the Company, including, without limitation, the
right to vote or to receive dividends.

The Purchase Price payable, and the number of
Preferred Shares or other securities or property issuable or payable, upon
exercise of the Rights are subject to adjustment from time to time to prevent
dilution.  The number of outstanding
Rights and the number of one one-hundredths of a Preferred Share issuable upon
exercise of each Right are also subject to adjustment in the event of a stock
split of the Common Shares or a stock dividend on the Common Shares payable in
Common Shares, or subdivisions, consolidations or combinations of the Common
Shares occurring, in any such case, prior to the Distribution Date.  With certain exceptions, no adjustment in the
Purchase Price will be required until cumulative adjustments require an
adjustment of at least 1% in such Purchase Price.  No fractional Preferred Shares will be issued
(other than fractions which are integral multiples of one one-hundredth of a
Preferred Share, which may, at the election of the Company, be evidenced by
depositary receipts) and in lieu thereof, an adjustment in cash will be made
based on the market price of the Preferred Shares on the last trading day prior
to the date of exercise.

TERMS
OF PREFERRED SHARES

Preferred Shares purchasable upon exercise of the
Rights will not be redeemable.  Each
Preferred Share will be entitled to a minimum preferential quarterly dividend
payment of $1.00 per share, when, as and if declared by the Board of Directors,
but will be entitled to an aggregate dividend of 100 times any dividend
declared per Common Share.  In the event
of liquidation, the holders of the Preferred Shares will be entitled to a
minimum preferential liquidation payment of $100.00 per share but will be
entitled to an aggregate payment of 100 times the payment made per Common
Share.  Each Preferred Share will have
100 votes, voting together with the Common Shares.  Finally, in the event of any merger, consolidation
or other transaction in which Common Shares are exchanged, each Preferred Share
will be entitled to receive 100 times the amount received per Common
Share.  These rights are protected by
customary anti-dilution provisions. 
Because of the nature of the Preferred Shares’ dividend, liquidation and
voting rights, the value of the one one-hundredth interest in a Preferred Share
purchasable upon exercise of each Right should approximate the value of one
Common Share.  The Preferred Shares would
rank junior to any other series of the Company’s preferred stock.

 C-2
 

TRIGGER
OF FLIP-IN AND FLIP-OVER RIGHTS

In the event that any person or group of affiliated or
associated persons becomes an Acquiring Person, each holder of a Right, other
than Rights beneficially owned by the Acquiring Person or any affiliate or
associate thereof (which will thereafter be void), will thereafter have the
right to receive upon exercise that number of Common Shares having a market
value of two times the exercise price of the Right.

In the event that the Company is acquired in a merger
or other business combination transaction or 50% or more of its consolidated
assets or earning power are sold to an Acquiring Person, its affiliates or
associates or certain other persons in which such persons have an interest,
proper provision will be made so that each such holder of a Right will
thereafter have the right to receive, upon the exercise thereof at the then
current exercise price of the Right, that number of shares of common stock of the
acquiring company which at the time of such transaction will have a market
value of two times the exercise price of the Right.

REDEMPTION
AND EXCHANGE OF RIGHTS

At any time prior to the earlier of (i) such time
that a person has become an Acquiring Person, or (ii) the Final Expiration
Date, the Board of Directors of the Company may redeem all, but not less than
all, of the Rights at a price of $0.01 per Right (the “Redemption Price”).  In general, the redemption of the Rights may
be made effective at such time on such basis with such conditions as the Board
of Directors in its sole discretion may establish  Immediately upon any redemption of the
Rights, the right to exercise the Rights will terminate and the only right of
the holders of Rights will be to receive the Redemption Price.

At any time after any Person becomes an Acquiring
Person and prior to the acquisition by such person or group of 50% or more of
the outstanding Common Shares, the Board of Directors of the Company may
exchange the Rights (other than Rights owned by such person or group which will
have become void), in whole or in part, at an exchange ratio of one Common
Share, or, under circumstances set forth in the Rights Agreement, cash,
property or other securities of the Company, including fractions of a Preferred
Share (or of a share of a class or series of the Company’s preferred stock
having equivalent designations and the powers, preferences and rights, and the
qualifications, limitations and restrictions), per Right (with value equal to
such Common Shares).

AMENDMENT
OF RIGHTS

The terms of the Rights generally may be amended by
the Board of Directors of the Company without the consent of the holders of the
Rights, except that from and after such time as the Rights become detached no
such amendment may adversely affect the interests of the holders of the Rights
(excluding the interest of any Acquiring Person or its affiliates or
associates).

ADDITIONAL
INFORMATION

A copy of the Rights Agreement has been filed with the
Securities and Exchange Commission as an Exhibit to a Current Report on
Form 8-K dated September 7, 2007.  A copy
of 

 C-3
 

the Rights Agreement is available from the Company by
writing to: Jos. A. Bank Clothiers, Inc., 500 Hanover Pike, Hampstead, MD
21074, Attention:  General Counsel.  This summary description of the Rights is not
intended to be complete and is qualified in its entirety by reference to the
Rights Agreement, which is hereby incorporated herein by reference.

 C-4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]