Document:

Exh 10.11-Form 10K-12/31/06

EXHIBIT 10.11

COMPENSATORY ARRANGEMENTS OF EXECUTIVE OFFICERS AND DIRECTORS.

Each of our executive officers is employed on an at will basis. The current annual salaries of our executive officers are set forth in the chart below:

	
Executive Officers 
	
Title
	
Salary
	
Incentive Component

	
Robert E. Matthiessen
	
President, CEO and Director
	
$317,242
	1.0% of consolidated pre-tax profits plus 1.0% of each product segment's pre-tax profits.

	
 
	
 
	
 
	
 

	
Alyn R. Holt
	
Chairman
	
$275,600
	None

	
 
	
 
	
 
	
 

	
Daniel J. Graham
	
Sr. Vice President and General Manager - Manipulator/Docking Hardware Product Segment
	
$205,712
	2.0% of pre-tax profits of the Manipulator and Docking Hardware product segment.

	
 
	
 
	
 
	
 

	
James Pelrin
	
Vice President and General Manager-Temperature Management Product Segment
	
$187,565
	2.0% of pre-tax profits of the Temperature Management product segment.

	
 
	
 
	
 
	
 

	
Hugh T. Regan, Jr.
	
Secretary, Treasurer and CFO
	
$187,018
	Up to a maximum of $100,000. (1)

	
 
	
 
	
 
	
 

	
Dale E. Christman
	
Vice President and General Manager - Tester Interface Product Segment
	
$176,000
	2.0% of pre-tax profits of the Tester Interface product segment.

	
 
	
 

	
(1)
	
Subject to the Company achieving consolidated pre-tax profits and the recommendation of the CEO and approval by the Compensation Committee, a majority of independent directors and the Board of Directors.

Each of the foregoing officers receive the Corporation's standard benefits package.

For 2007, Directors who are not also officers of the Corporation (each a "non-employee director") will receive an annual retainer of $25,000. Members of the Executive Committee are paid an additional annual retainer of $15,000. The chairmen of the committees of the Board are paid an additional annual fee as follows: the Chairman of the Audit Committee is paid an additional annual fee of $15,000; the Chairman of the Compensation Committee is paid an additional annual fee of $10,000; the Chairman of the IP Committee is paid an additional annual fee of $75,000; and the Chairman of the Nominating and Corporate Governance Committee is paid an additional annual fee of $10,000. 

In addition, Directors and Officers are also eligible for awards of stock options or shares of restricted stock pursuant to the inTEST Corporation Amended and Restated 1997 Stock Plan, however, such awards are made at the discretion of the Compensation Committee subject to the further recommendation of a majority of the independent directors and approval of the Board of Directors. On March 6, 2007, awards of restricted stock were made as follows:

	

Executive Officers
	
Restricted

Stock

Awards
	
 
	

Directors
	
Restricted

Stock

Awards

	
Robert E. Matthiessen
	
10,000
	
 
	
Stuart F. Daniels
	
10,000

	
Hugh T. Regan, Jr.
	
10,000
	
 
	
James J. Greed, Jr.
	
10,000

	
Daniel J. Graham
	
9,000
	
 
	
James W. Schwartz
	
10,000

	
James Pelrin
	
9,000
	
 
	
Thomas J. Reilly, Jr.
	
10,000

	
Dale E. Christman
	
9,000Exhibit 4.1 to Criticare March 27, 2007 Form 8-K

    EXHIBIT
      4.1

    

     

     

     

    
 

    

    

    

    

    
      
        

      

    

    

    CRITICARE
      SYSTEMS, INC.

    

    

    and

    

    

    LASALLE
      BANK NATIONAL ASSOCIATION

    Rights
      Agent

    

    

    Amended
      and Restated Rights Agreement

    Dated
      as
      of March 27, 2007

    

    
      
 

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF
      CONTENTS

    
       

      

      
        	 	 	Page
	 	 	 
	
                Section
                  1.

              	
                Certain
                  Definitions

              	
                1

              
	 	 	 
	
                Section
                  2.

              	
                Appointment
                  of Rights Agent

              	
                4

              
	 	 	 
	
                Section
                  3.

              	
                Issue
                  of Right Certificates

              	
                5

              
	 	 	 
	
                Section
                  4.

              	
                Form
                  of Right Certificates

              	
                7

              
	 	 	 
	
                Section
                  5.

              	
                Countersignature
                  and Registration

              	
                7

              
	 	 	 
	
                Section
                  6.

              	
                Transfer,
                  Split Up, Combination and Exchange of Right Certificates; Mutilated,
                  

              	
                 

              
	 	
                 Destroyed,
                  Lost or Stolen Right Certificates

              	
                8

              
	 	 	 
	
                Section
                  7.

              	
                Exercise
                  of Rights; Purchase Price; Expiration Date of Rights

              	
                8

              
	 	 	 
	
                Section
                  8.

              	
                Cancellation
                  and Destruction of Right Certificates

              	
                10

              
	 	 	 
	
                Section
                  9.

              	
                Availability
                  of Preferred Shares

              	
                10

              
	 	 	 
	
                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

              	
                20

              
	 	 	 
	
                Section
                  13.

              	
                Consolidation,
                  Merger or Sale or Transfer of Assets

              	 
	 	
                or
                  Earning Power

              	
                20

              
	 	 	 
	
                Section
                  14.

              	
                Fractional
                  Rights and Fractional Shares

              	
                21

              
	 	 	 
	
                Section
                  15.

              	
                Rights
                  of Action

              	
                22

              
	 	 	 
	
                Section
                  16.

              	
                Agreement
                  of Right Holders

              	
                22

              

      

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

      

      
        	
                Section
                  17.

              	
                Right
                  Certificate Holder Not Deemed a Stockholder

              	
                23

              
	 	 	 
	
                Section
                  18.

              	
                Concerning
                  the Rights Agent

              	
                23

              
	 	 	 
	
                Section
                  19.

              	
                Merger
                  or Consolidation or Change of

              	 
	 	
                Name
                  of Rights Agent

              	
                24

              
	 	 	 
	
                Section
                  20.

              	
                Duties
                  of Rights Agent

              	
                24

              
	 	 	 
	
                Section
                  21.

              	
                Change
                  of Rights Agent

              	
                26

              
	 	 	 
	
                Section
                  22.

              	
                Issuance
                  of New Right Certificates

              	
                27

              
	 	 	 
	
                Section
                  23.

              	
                Redemption

              	
                27

              
	 	 	 
	
                Section
                  24.

              	
                Notice
                  of Certain Events

              	
                29

              
	 	 	 
	
                Section
                  25.

              	
                Notices

              	
                29

              
	 	 	 
	
                Section
                  26.

              	
                Supplements
                  and Amendments

              	
                30

              
	 	 	 
	
                Section
                  27.

              	
                Successors

              	
                31

              
	 	 	 
	
                Section
                  28.

              	
                Benefits
                  of this Agreement

              	
                31

              
	 	 	 
	
                Section
                  29.

              	
                Severability

              	
                31

              
	 	 	 
	
                Section
                  30.

              	
                Determinations
                  and Actions by the Board of Directors

              	
                31

              
	 	 	 
	
                Section
                  31.

              	
                Governing
                  Law

              	
                31

              
	 	 	 
	
                Section
                  32.

              	
                Counterparts

              	
                32

              
	 	 	 
	
                Section
                  33.

              	
                Descriptive
                  Headings

              	
                32

              
	 	 	 
	
                Signatures

              	 	
                32

              
	 	 	 
	
                Exhibit
                  A 

              	Form of Right Certificate	 

      

       

    

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

    

    AMENDED
      AND RESTATED RIGHTS AGREEMENT

    

    THIS
      AMENDED AND RESTATED RIGHTS AGREEMENT,
      dated
      as of March 27, 2007, is between CRITICARE SYSTEMS, INC., a Delaware
      corporation (the "Company"), and LASALLE BANK NATIONAL ASSOCIATION (the "Rights
      Agent").

    

    RECITALS

    

    A.  The
      Company is a party to a Rights Agreement with Firstar Trust Company, as rights
      agent (the "Former Rights Agent"), dated March 27, 1997 (the "Original
      Agreement"), pursuant to which the Board of Directors of the Company has
      authorized and declared a dividend of one preferred stock share purchase right
      (a "Right") for each Common Share (as hereinafter defined) of the Company
      outstanding on April 24, 1997 (the "Record Date"), each Right representing
      the right to purchase one-hundredth of one share of the Company's Preferred
      Stock (the "Preferred Shares"), upon the terms and subject to the conditions
      herein set forth, and further authorized and directed the issuance of one Right
      with respect to each Common Share that shall become outstanding between the
      Record Date and the earliest of the Distribution Date, the Redemption Date
      and
      the Final Expiration Date (as such terms are hereinafter defined).

    

    B.  Pursuant
      to Section 21 of the Rights Agreement, the Former Rights Agent has previously
      resigned as rights agent. Pursuant to Section 21 of the Rights Agreement,
      the Company desires to appoint the Rights Agent as the new rights agent to
      act
      on behalf of the Company and the holders of the Rights, and the Rights Agent
      is
      willing to so act, in accordance with the terms of this Agreement.

    

    C.  The
      Company and the Rights Agent desire to amend and restate the Original Agreement
      in accordance with the terms and conditions of this Agreement.

    

    AGREEMENTS

    

    Accordingly,
      in consideration of the recitals 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) which,
      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 of the Company then
      outstanding, but shall not include the Company, any Subsidiary (as such term
      is
      hereinafter defined) of the Company, any employee benefit plan of the Company
      or
      any Subsidiary of the Company, or any entity holding Common Shares for or
      pursuant to the terms of any such plan. Notwithstanding the foregoing, no Person
      shall become an "Acquiring Person" as the result of an acquisition of Common
      Shares by the Company which, by reducing the number of shares outstanding,
      increases the proportionate number of shares beneficially owned by such Person
      to 20% or more of the Common Shares of the Company then outstanding; provided,
      however, that if a Person shall become the Beneficial Owner of 20% or more
      of
      the Common Shares of the Company then outstanding by reason of share purchases
      by the Company and shall, after such share purchases by the Company, become
      the
      Beneficial Owner of any additional Common Shares of the Company, then such
      Person shall be deemed to be an "Acquiring Person."

    

    (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.

    

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

    

    (i) which
      such Person or any of such Person's Affiliates or Associates beneficially owns,
      directly or indirectly;

    

    (ii) which
      such Person or any of such Person's Affiliates or Associates has (A) the right
      to acquire (whether such right is exercisable immediately or only after the
      passage of time) pursuant to any agreement, arrangement or understanding (other
      than customary agreements with and between underwriters and selling group
      members with respect to a bona fide public offering of securities), or upon
      the
      exercise of conversion rights, exchange rights, rights (other than these
      Rights), warrants or options, or otherwise; provided, however, that a Person
      shall not be deemed the Beneficial Owner of, 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) which
      are
      beneficially owned, directly or indirectly, by any other Person with which
      such
      Person or any of such Person's Affiliates or Associates has any agreement,
      arrangement or understanding (other than customary agreements with and between
      underwriters and selling group members with respect to a bona fide public
      offering of securities) for the purpose of acquiring, holding, voting (except
      to
      the extent contemplated by the proviso to Section 1(c)(ii)(B)) 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 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., Milwaukee, Wisconsin
      time, on such date; provided, however, that if such date is not a Business
      Day
      it shall mean 5:00 P.M., Milwaukee, Wisconsin time, on the next succeeding
      Business Day.

    

    (f) "Common
      Shares" when used with reference to the Company shall mean the shares of common
      stock, par value $.04 per share, of the Company. "Common Shares" when used
      with
      reference to any Person other than the Company shall mean the capital stock
      (or
      equity interest) with the greatest voting power of such other Person or, if
      such
      other Person is a Subsidiary of another Person, the Person or Persons which
      ultimately control such first-mentioned Person.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (g) "Disinterested
      Director" shall mean any member of the Company's Board of Directors who is
      not
      an employee of the Company or any of its Subsidiaries or is unaffiliated with
      the Acquiring Person or any of its Affiliates or Associates and was a member
      of
      the Company's Board of Directors prior to the time that the Acquiring Person
      became an Acquiring Person and any successor of a Disinterested Director who
      is
      not an officer or employee of the Company or any of its Subsidiaries and is
      unaffiliated with the Acquiring Person or any of its Affiliates or Associates
      and is recommended to succeed a Disinterested Director by a majority of the
      Disinterested Directors then on the Company's Board of Directors.

    

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

    

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

    

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

    

    (k) "Redemption
      Date" shall have the meaning set forth in Section 7 hereof.

    

    (l) "Section
      11(a)(ii) Event" shall mean any event described in Section 11(a)(ii)[a],
      [b] or [c] hereof.

    

    (m) "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.

    

    (n) "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.

    

    Section
      2. Appointment
      of Rights Agent.
      The
      Company hereby appoints the Rights Agent to act as agent for the Company and
      the
      holders of the Rights (who, in accordance with Section 3 hereof, shall prior
      to
      the Distribution Date also be the holders of the Common Shares) 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.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    Section
      3. Issue
      of Right Certificates.
      

    

    (a) Until
      the
      earlier of (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 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 the consummation of
      which
      would result in any Person becoming the Beneficial Owner of Common Shares
      aggregating 30% or more of the then outstanding Common Shares (including any
      such date which 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 (subject to the
      provisions of Section 3(b) hereof) 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 right to receive Right Certificates 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
      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 A hereto (a "Right
      Certificate"), evidencing one Right for each Common Share so held. As of the
      Distribution Date, the Rights will be evidenced solely by such Right
      Certificates.

    

    (b) 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 or 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.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (c) Certificates
      for Common Shares which become outstanding (including, without limitation,
      reacquired Common Shares referred to in the last sentence of this paragraph
      (c))
      after the Record Date but prior to the earliest of the Distribution Date, the
      Redemption Date or the Final Expiration Date shall bear the following
      legend:

    

    This
      certificate also evidences and entitles the holder hereof to certain rights
      as
      set forth in an Amended and Restated Rights Agreement between Criticare Systems,
      Inc. and LaSalle Bank National Association (as successor rights agent to Firstar
      Trust Company), dated as of March 27, 2007 (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 Criticare Systems, Inc. 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. Criticare Systems, Inc. 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 (as defined in the Rights Agreement) shall become
      null and void.

    

    Certificates
      for Common Shares containing the legend as provided in the Original Agreement
      shall remain valid and effective and new certificates for Common Shares
      containing the foregoing legend shall only be required to be issued upon
      issuance of new or replacement certificates, whether upon surrender of the
      old
      certificates or otherwise. With respect to such certificates containing the
      foregoing legend, until the Distribution 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 cancelled and retired
      so that the Company shall not be entitled to exercise any Rights associated
      with
      the Common Shares which are no longer outstanding.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    Section
      4. Form
      of Right Certificates.
      The
      Right Certificates (and the forms of election to purchase one one-hundredth
      Preferred Shares and of assignment to be printed on the reverse thereof) shall
      be substantially the same as Exhibit A 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 on which the Rights may from time
      to
      time be listed, or to conform to usage. Subject to the provisions of Section
      22
      hereof, the Right Certificates shall entitle the holders thereof to purchase
      such number of one one-hundredth Preferred Shares as shall be set forth therein
      at the price per one one-hundredth Preferred Share set forth therein (the
      "Purchase Price"), but the number of such one one-hundredth Preferred Shares
      and
      the Purchase Price shall be subject to adjustment as provided
      herein.

    

    Section
      5. Countersignature
      and Registration.
      The
      Right Certificates shall be executed on behalf of the Company by its Chairman
      of
      the Board, its Chief Executive Officer, its President, any of its Vice
      Presidents, or its Treasurer, either manually or by facsimile signature, 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 Certificate, although at the date of the execution of this Rights
      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
      principal office, books for registration and transfer of the Right Certificates
      issued hereunder. Such books shall show the names and addresses of the
      respective holders of the Right Certificates, the number of Rights evidenced
      on
      its face by each of the Right Certificates and the date of each of the Right
      Certificates.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    Section
      6. Transfer,
      Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed,
      Lost or Stolen Right Certificates.
      Subject
      to the provisions of Section 14 hereof, at any time after the close of business
      on the Distribution Date, and at or prior to the close of business on the
      earlier of the Redemption Date or the Final Expiration Date, any Right
      Certificate or Right Certificates (other than Right Certificates representing
      Rights that have become void pursuant to Section 11(a)(ii) hereof) may be
      transferred, split up, combined or exchanged for another Right Certificate
      or
      Right Certificates, entitling the registered holder to purchase a like number
      of
      one one-hundredth Preferred Shares as the Right Certificate or Right
      Certificates surrendered then entitled such holder to purchase. Any registered
      holder desiring to transfer, split up, combine or exchange any Right Certificate
      or Right Certificates shall make such request in writing delivered to the Rights
      Agent, and shall surrender the Right Certificate or Right Certificates to be
      transferred, split up, combined or exchanged at the principal office of the
      Rights Agent. Thereupon the Rights Agent shall countersign and deliver to the
      person entitled thereto a Right Certificate or Right Certificates, as the case
      may be, as so requested. The Company may require payment of a sum sufficient
      to
      cover any tax or governmental charge that may be imposed in connection with
      any
      transfer, split up, combination or exchange of Right Certificates.

    

    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 make and deliver a new Right Certificate of like
      tenor to the Rights Agent for delivery to the registered holder in lieu of
      the
      Right Certificate so lost, stolen, destroyed or mutilated.

    

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

    

    (a) The
      registered holder of any Right Certificate may exercise the Rights evidenced
      thereby (except as otherwise provided herein) in whole or in part at any time
      after the Distribution Date upon surrender of the Right Certificate, with the
      form of election to purchase on the reverse side thereof duly executed, to
      the
      Rights Agent at the principal office of the Rights Agent, together with payment
      of the Purchase Price for each one one-hundredth Preferred Share as to which
      the
      Rights are exercised, at or prior to the earliest of (i) the close of business
      on March 27, 2017 (the "Final Expiration Date"), or (ii) the time at which
      the Rights are redeemed as provided in Section 23 hereof (the "Redemption
      Date").

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (b) The
      Purchase Price for each one one-hundredth Preferred Share purchasable pursuant
      to the exercise of a Right shall initially be $25.00, shall be subject to
      adjustment from time to time as provided in Sections 11 and 13 hereof and shall
      be payable in lawful money of the United States of America in accordance with
      paragraph (c) below.

    

    (c) Upon
      receipt of a Right Certificate representing exercisable Rights, with the form
      of
      election to purchase duly executed, accompanied by payment of the Purchase
      Price
      for the number of one one-hundredth Preferred 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 or money order payable to the order of the Company, the Rights
      Agent shall thereupon promptly (i) requisition from any transfer agent of the
      Preferred Shares certificates for the number of one one-hundredth Preferred
      Shares to be purchased and the Company hereby irrevocably authorizes its
      transfer agent to comply with all such requests, (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, 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.

    

    (d) In
      case
      the registered holder of any Right Certificate shall exercise less than all
      the
      Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent
      to the Rights remaining unexercised shall be issued by the Rights Agent to
      the
      registered holder of such Right Certificate or to his duly authorized assigns,
      subject to the provisions of Section 14 hereof.

    

    (e) Notwithstanding
      anything in this Rights Agreement to the contrary, neither the Rights Agent
      nor
      the Company shall be obligated to undertake any action with respect to a
      registered holder of Rights upon the occurrence of any purported transfer or
      exercise of Rights pursuant to Section 6 hereof or this Section 7 unless
      such registered holder shall have (i) completed and signed the certificate
      contained in the form of assignment or election to purchase set forth on the
      reverse side of the Right Certificate surrendered for such transfer or exercise
      and (ii) provided such additional evidence of the identity of the Beneficial
      Owner (or former Beneficial Owner) thereof as the Company shall reasonably
      request.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

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

    

    Section
      9. Availability
      of Preferred Shares.
      The
      Company covenants and agrees that it will take all such action as may be
      necessary to ensure that all Preferred Shares delivered upon exercise of Rights
      shall, at the time of delivery of the certificates for such Preferred Shares
      (subject to payment of the Purchase Price), be duly and validly authorized
      and
      issued and fully paid and nonassessable shares.

    

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

    

    Section
      10. Preferred
      Shares Record Date.
      Each
      person in whose name any certificate for Preferred Shares is issued upon the
      exercise of Rights shall for all purposes be deemed to have become the holder
      of
      record of the Preferred Shares represented thereby on, and such certificate
      shall be dated, the date upon which the Right Certificate evidencing such Rights
      was duly surrendered and payment of the Purchase Price (and any applicable
      transfer taxes) was made; provided, however, that if the date of such surrender
      and payment is a date upon 

    
 

    
      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

    

    which
      the
      Preferred Shares 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
      transfer books of the Company are open. Prior to the exercise of the Rights
      evidenced thereby, the holder of a Right Certificate shall not be entitled
      to
      any rights of a holder of Preferred Shares for which the Rights shall be
      exercisable, including, without limitation, the right to vote, to receive
      dividends or other distributions or to exercise any preemptive rights, and
      shall
      not be entitled to receive any notice of any proceedings of the Company, except
      as provided herein.

    

    Section
      11. Adjustment
      of Purchase Price, Number of Shares or Number of Rights.
      The
      Purchase Price, the number of one one-hundredth 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 which, if such Right had
      been exercised immediately prior to such date and at a time when the Preferred
      Shares transfer books of the Company were open, he 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.

     

                 
(ii) If:

    

    [a] any
      Acquiring Person or any Associate or Affiliate of any Acquiring Person at any
      time after the date of this Agreement, directly or indirectly, without the
      prior
      approval of a majority of the Disinterested Directors, shall

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    [i] merge
      into the Company or otherwise combine with the Company, the Company shall be
      the
      continuing or surviving corporation of such merger or combination, and the
      Common Shares shall remain outstanding and shall not be changed or
      exchanged,

    

    [ii] in
      one or
      more transactions, transfer any assets to the Company in exchange (in whole
      or
      in part) for Common Shares or for securities exercisable for or convertible
      into
      Common Shares or otherwise obtain from the Company, with or without
      consideration, any additional Common Shares or securities exercisable or
      convertible into Common Shares (other than as part of a pro rata distribution
      to
      all holders of Common Shares),

    

    [iii] sell,
      purchase, lease, exchange, mortgage, pledge, transfer or otherwise dispose
      (in
      one transaction or a series of transactions) to, from or with the Company or
      any
      of the Company's Subsidiaries, assets on terms and conditions less favorable
      to
      the Company than the Company would be able to obtain through arm's-length
      negotiation with an unaffiliated third party,

    

    [iv] sell,
      purchase, lease, exchange, mortgage, pledge, transfer or otherwise acquire
      or
      dispose of in one transaction or a series of transactions to, from or with
      (as
      the case may be) the Company or any of the Company's Subsidiaries other than
      incidental to the lines of business, if any, engaged in as of the date hereof
      between the Company and such Acquiring Person or Associate or Affiliate assets
      having an aggregate fair market value of more than $1,000,000, other than
      pursuant to a transaction described in Section 13 hereof,

    

    [v] receive
      any compensation from the Company or any of the Company's Subsidiaries other
      than compensation for full-time employment as a regular employee at rates in
      accordance with the Company's (or its Subsidiaries') past practices,
      or

    

    [vi] receive
      the benefit, directly or indirectly (except proportionately as a stockholder),
      of any loans, advances, guarantees, pledges or other financial assistance or
      any
      tax credits or other tax advantage provided by the Company or any of its
      Subsidiaries, or

    

    [b] 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 Person
      or entity organized, appointed or established by the Company for or pursuant
      to
      the terms of any such plan), alone or together with its Affiliates and
      Associates, shall, without the prior approval of a majority of the Disinterested
      Directors, at any time after the Record Date, become the Beneficial Owner of
      30%
      or more of the Common Shares then outstanding, other than pursuant to any
      transaction set forth in Section 13(a) hereof, or

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    [c] during
      such time as there is an Acquiring Person, there shall be, without the prior
      approval of a majority of the Disinterested Directors, any reclassification
      of
      securities (including any reverse stock split), or recapitalization of the
      Company, or any merger or consolidation of the Company with any of its
      Subsidiaries or any other transaction or series of transactions involving the
      Company or any of its Subsidiaries, other than a transaction or transactions
      to
      which the provisions of Section 13(a) apply (whether or not into or
      otherwise involving an Acquiring Person) which has the effect, directly or
      indirectly, or increasing by more than 1% the proportionate share of the
      outstanding shares of any class of equity securities or securities exercisable
      for or convertible into Common Shares which is directly or indirectly owned
      by
      any Acquiring Person or any Associate or Affiliate of any Acquiring Person,
      then, within five days after the date of the occurrence of an event described
      in
      Section 11(a)(ii)[b] hereof and promptly following the occurrence of any
      event described in Section 11(a)(ii)[a] or [c] hereof, proper provision
      shall be made so that each holder of a Right (except as provided below and
      in
      Section 7(e) hereof) shall thereafter have the right to receive, upon
      exercise thereof at the then current Purchase Price in accordance with the
      terms
      of this Agreement, in lieu of Preferred Shares, such number of Common Shares
      as
      shall equal the result obtained by (x) multiplying the then current
      Purchase Price by the then number of one one-hundredths Preferred Shares for
      which a Right was exercisable immediately prior to the first occurrence of
      a
      Section 11(a)(ii) Event and dividing that product (which, following such
      first occurrence, shall thereafter be referred to as the "Purchase Price" for
      each Right and for all purposes of this Agreement) by (y) 50% of the
      current market price (determined pursuant to Section 11(d) hereof) per
      Common Share on the date of such first occurrence (such number of shares, the
      "Adjustment Shares").

    

    (iii) If
      the
      number of Common Shares which are authorized by the Company's Certificate of
      Incorporation, but not outstanding or reserved for issuance for purposes other
      than upon exercise of the Rights, are not sufficient to permit the exercise
      in
      full of the Rights in accordance with the foregoing subparagraph (ii) of
      this Section 11(a), the Company shall:

    

    [a] determine
      the excess of [i] the value of the Adjustment Shares issuable upon the
      exercise of a Right (the "Current Value") over [ii] the Purchase Price
      (such excess, the "Spread") and

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    [b] with
      respect to each Right, make adequate provision to substitute for the Adjustment
      Shares, upon payment of the applicable Purchase Price, [i] cash,
      [ii] a reduction in the Purchase Price, [iii] equity securities of the
      Company (including, without limitation, Preferred Shares, or units of Preferred
      Shares, which the Board of Directors of the Company has deemed to have the
      same
      value as Common Shares (such Preferred Shares, "Common Stock Equivalents")),
      [iv] debt securities of the Company, [v] other assets, or
      [vi] any combination of the foregoing, having an aggregate value equal to
      the Current Value, where such aggregate value has been determined by the Board
      of Directors of the Company based upon the advice of a nationally recognized
      investment banking firm selected by the Board of Directors of the Company;
      provided, however, if the Company shall not have made adequate provision to
      deliver value pursuant to clause [b] above within 30 days following the
      first occurrence of a Section 11(a)(ii) Event, then the Company shall be
      obligated to deliver, upon the surrender for exercise of a Right and without
      requiring payment of the Purchase Price, Common Shares (to the extent available)
      and then, if necessary, cash, which securities and/or assets in the aggregate
      are equal to the Spread. If the Board of Directors of the Company shall
      determine in good faith that it is likely that sufficient additional Common
      Shares could be authorized for issuance upon exercise in full of the Rights,
      the
      30-day period set forth above may be extended to the extent necessary, but
      not
      more than 90 days following the first occurrence of a Section 11(a)(i)
      Event, to enable the Company to seek shareholder approval for the authorization
      of such additional shares (such period, as it may be extended, the "Substitution
      Period").

    

    To
      the
      extent that the Company determines that some action needs to be taken pursuant
      to the first and/or second sentences of this Section 11(a)(iii), the
      Company (x) shall provide, subject to Section 7(e) hereof, that such
      action shall apply uniformly to all outstanding Rights and (y) may suspend
      the exercisability of the Rights until the expiration of the Substitution Period
      to seek any authorization of additional shares and/or to decide the appropriate
      form of distribution to be made pursuant to such first sentence and to determine
      the value thereof. In the event of any such suspension, the Company shall issue
      a public announcement stating that the exercisability of the Rights has been
      temporarily suspended, as well as a public announcement at such time as the
      suspension is no longer in effect. For purposes of this Section 11(a)(iii),
      the value of each Common Share shall be the current market price (as determined
      pursuant to Section 11(d) hereof) on the date of the first occurrence of a
      Section 11(a)(ii) Event and the value of any Common Stock Equivalent shall
      be deemed to have the same value as a Common Share on such date.

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (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 securities convertible into Preferred Shares at
      a
      price per Preferred Share (or having a conversion price per share, if a security
      convertible into Preferred Shares) less than the then current per share market
      price of the Preferred Shares (as defined in Section 11(d)) on such record
      date,
      the Purchase Price to be in effect after such record date shall be determined
      by
      multiplying the Purchase Price in effect immediately prior to such record date
      by a fraction, the numerator of which shall be the number of Preferred Shares
      outstanding on such record date plus the number of Preferred Shares which the
      aggregate offering price of the total number of Preferred Shares to be so
      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 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 of the Company, 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 which
      would then be in effect if such record date had not been fixed.

    

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

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    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 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
      the Common Shares on any date shall be deemed to be the average of the daily
      closing prices per share of such Common Shares 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 Common Shares is determined during a period following the announcement
      by
      the issuer of such Common Shares of (A) a dividend or distribution on such
      Common Shares payable in shares of such Common Shares or securities convertible
      into such shares, or (B) any subdivision, combination or reclassification of
      such Common Shares 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 Common Share. 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 Common Shares 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 Common Shares are listed or admitted to trading
      or, if the Common Shares 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
      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 Common
      Shares are not quoted by any such organization, the average of the closing
      bid
      and asked prices as furnished by a professional market maker making a market
      in
      the Common Shares selected by the Board of Directors of the Company.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    The
      term
      "Trading Day" shall mean a day on which the principal national securities
      exchange on which the Common Shares are listed or admitted to trading is open
      for the transaction of business or, if the Common Shares are not listed or
      admitted to trading on any national securities exchange, a Business Day. If
      the
      Common Shares are not publicly held or so listed or traded, "current per share
      market price" shall mean the fair value per share as determined in good faith
      by
      the Board of Directors of the Company, whose determination shall be described
      in
      a statement filed with the Rights Agent.

     

                  (ii) For
      the
      purpose of any computation hereunder, the "current market price" per Preferred
      Share shall be determined in the same manner as set forth above for the Common
      Shares in clause (i) of this Section 11(d) (other than the last
      sentence thereof). If the current market price per Preferred Share cannot be
      determined in the manner provided above or if the Preferred Shares are not
      publicly held or listed or traded in a manner described in clause (i) of
      this Section 11(d), the "current market price" per Preferred Share shall be
      conclusively deemed to be an amount equal to 100 (as such number may be
      appropriately adjusted for such events as stock splits, stock dividends and
      recapitalizations with respect to the Common Shares occurring after the date
      of
      this Agreement) multiplied by the Current Market Price per Common Share. If
      neither the Common Shares nor the Preferred Shares are publicly held or so
      listed or traded, "current market price" per Preferred Share shall mean the
      fair
      value per share as determined in good faith by the Board of Directors of the
      Company, whose determination shall be described in a statement filed with the
      Rights Agent and shall be conclusive for all purposes. For all purposes of
      this
      Agreement, the "current market price" of one one-hundredth of a Preferred Share
      shall be equal to the "current market price" of one Preferred Share divided
      by
      100.

    

    (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 ten-thousandth of a share as the case
      may
      be. Notwithstanding the first sentence of this Section 11(e), any adjustment
      required by this Section 11 shall be made no later than the earlier of
      (i) three years from the date of the transaction which requires such
      adjustment or (ii) the date of the expiration of the right to exercise any
      Rights.

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (f) If
      as a
      result of an adjustment made pursuant to Section 11(a) hereof, the holder of
      any
      Right thereafter exercised shall become entitled to receive any shares of
      capital stock of the Company other than Preferred Shares, thereafter the number
      of such other shares so receivable upon exercise of any Right shall be subject
      to adjustment from time to time in a manner and on terms as nearly equivalent
      as
      practicable to the provisions with respect to the Preferred Shares contained
      in
      Section 11(a) through (c), inclusive, and the provisions of Sections 7, 9,
      10
      and 13 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 Preferred Shares 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),
      upon
      each adjustment of the Purchase Price as a result of the calculations made
      in
      Sections 11(b) and (c), 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 Preferred Shares (calculated to the
      nearest one ten-thousandth of a share) obtained by (i) multiplying (x) the
      number of shares 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 Preferred Shares 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 Preferred Shares 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 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 

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    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 Preferred
      Shares 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 Preferred Shares which were expressed in the initial Right
      Certificates issued hereunder.

    

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

    

    (1) 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 over and above the Preferred Shares and other capital stock or
      securities of the Company, if any, issuable upon such exercise on the basis
      of
      the Purchase Price in effect prior to such adjustment; provided, however, that
      the Company shall deliver to such holder a due bill or other appropriate
      instrument evidencing such holder's right to receive such additional shares
      upon
      the occurrence of the event requiring such adjustment.

    

    
      
        
        

      

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

    

    Section
      12. Certificate
      of Adjusted Purchase Price or Number of Shares.
      Whenever an adjustment is made as provided in Section 11 or 13 hereof, the
      Company shall 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 a copy
      of
      such certificate and (c) mail a brief summary thereof to each holder of a Right
      Certificate in accordance with Section 24 hereof.

    

    Section
      13. Consolidation,
      Merger or Sale or Transfer of Assets or Earning Power.
      In the
      event, directly or indirectly, (a) the Company shall consolidate with, or merge
      with and into, any other Person, (b) any 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 and, in connection with
      such
      merger, all or part of the Common Shares shall be changed into or exchanged
      for
      stock or other securities of any other Person (or the Company) or cash or any
      other property, or (c) the Company shall sell or otherwise transfer (or one
      or
      more of its Subsidiaries shall sell or otherwise transfer), in one or more
      transactions, assets or earning power aggregating 50% or more of the assets
      or
      earning power of the Company and its Subsidiaries (taken as a whole) to any
      other Person other than the Company or one or more of its wholly-owned
      Subsidiaries, then, and in each such case, proper provision shall be made so
      that (i) each holder of a Right (except as otherwise provided herein) shall
      thereafter have the right to receive, upon the exercise thereof at a price
      equal
      to two times the then current Purchase Price multiplied by the number of one
      one-hundredth Preferred Shares for which a Right is then exercisable, in
      accordance with the terms of this Agreement, such number of Common Shares of
      such other Person (including the Company as successor thereto or as the
      surviving corporation) as shall equal the result obtained by (A) multiplying
      two
      times the then current Purchase Price by the number of one one-hundredth
      Preferred Shares for which a Right is then exercisable and dividing that product
      by (B) 50% of the then current per share market price of the 

    Common Shares of such 

    
 

    
      
        
        

      

      
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    other
      Person (determined pursuant to Section 11(d) hereof) on the date of
      consummation of such consolidation, merger, sale or transfer; (ii) the issuer
      of
      such Common Shares shall thereafter be liable for, and shall assume, by virtue
      of such consolidation, merger, sale or transfer, all the obligations and duties
      of the Company pursuant to this Agreement; (iii) the term "Company" shall
      thereafter be deemed to refer to such issuer; and (iv) such issuer shall take
      such steps (including, but not limited to, the reservation of a sufficient
      number of its Common Shares in accordance with Section 9 hereof) in connection
      with such consummation as may be necessary to assure that the provisions hereof
      shall thereafter be applicable, as nearly as reasonably may be, in relation
      to
      the Common Shares thereafter deliverable upon the exercise of the Rights. The
      Company shall not consummate any such consolidation, merger, sale or transfer
      unless prior thereto the Company and such issuer shall have executed and
      delivered to the Rights Agent a supplemental agreement so providing. The Company
      shall not enter into any transaction of the kind referred to in this
      Section 13 if at the time of such transaction there are any rights,
      warrants, instruments or securities outstanding or any agreements or
      arrangements which, as a result of the consummation of such transaction, would
      eliminate or substantially diminish the benefits intended to be afforded by
      the
      Rights. The provisions of this Section 13 shall similarly apply to successive
      mergers or consolidations or sales or other transfers.

    

    Section
      14. Fractional
      Rights and Fractional Shares.
      

    

    (a) The
      Company shall not be required to issue fractions of Rights or to distribute
      Right Certificates which evidence fractional Rights. In lieu of such fractional
      Rights, there shall be paid to the registered holders of the Right Certificates
      with regard to which such fractional Rights would otherwise be issuable, an
      amount in cash equal to the same fraction of the current market value of a
      whole
      Right. For 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 of the Company. If on any such date no such market maker is making
      a
      market in the Rights, the fair value of the Rights on such date as determined
      in
      good faith by the Board of Directors of the Company shall be
      used.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    (b) The
      Company shall not be required to issue fractions of Preferred Shares upon
      exercise of the Rights or to distribute certificates which evidence fractional
      Preferred Shares. In lieu of fractional Preferred Shares, the Company may,
      at
      its sole option, pay to the registered holders of Right Certificates at the
      time
      such Rights are exercised as herein provided an amount in cash equal to the
      same
      fraction of the current market value of one Preferred Share. For the purposes
      of
      this Section 14(b), the current market value of a Preferred Share shall be
      the closing price of a Preferred Share (as determined pursuant to
      Section 11(d)) for the Trading Day immediately prior to the date of such
      exercise.

    

    (c) The
      holder of a Right by the acceptance of the Right expressly waives the holder's
      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 Section 18 hereof, are vested in the respective
      registered holders of the Right Certificates (and, prior to the Distribution
      Date, the registered holders of the Common Shares); and any registered holder
      of
      any Right Certificate (or, prior to the Distribution Date, of the Common
      Shares), without the consent of the Rights Agent or of the holder of any other
      Right Certificate (or, prior to the Distribution Date, of the Common Shares),
      may, in 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 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.

    

    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:

    

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

     

    (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 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 which may at any time be issuable on the
      exercise of the Rights represented thereby, nor shall anything contained herein
      or in any Right Certificate be construed to confer upon the holder of any Right
      Certificate, as such, any of the rights of a stockholder of the Company or
      any
      right to vote for the election of directors or upon any matter submitted to
      stockholders at any meeting thereof, or to give or withhold consent to any
      corporate action, or to receive notice of meetings or other actions affecting
      stockholders (except as provided in Section 24 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 negligence, bad faith or willful misconduct on the
      part of the Rights Agent, for anything done or omitted by the Rights Agent
      in
      connection with the acceptance and administration of this Agreement, including
      the costs and expenses of defending against any claim of liability in the
      premises.

    

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    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 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.

    

    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 stock transfer
      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.

    

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

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

    

    (b) Whenever
      in the performance of its duties under this Agreement the Rights Agent shall
      deem it necessary or desirable that any fact or matter be proved or established
      by the Company prior to taking or suffering any action hereunder, such fact
      or
      matter (unless other evidence in respect thereof be herein specifically
      prescribed) may be deemed to be conclusively proved and established by a
      certificate signed by any one of the Chairman of the Board, the Chief Executive
      Officer, the President, any Vice President, the Treasurer 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 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
      Section 3, 11, 13 or 23, or the ascertaining of the existence of facts that
      would require any such change or adjustment (except 

    
 

    
      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

    

    

    with
      respect to the exercise of Rights evidenced by Right Certificates after actual
      notice that such change or adjustment is required); nor shall it by any act
      hereunder be deemed to make any representation or warranty as to the
      authorization or reservation of any Preferred Shares or Common Shares to be
      issued pursuant to this Agreement or any Right Certificate or as to whether
      any
      Preferred Shares or Common 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, 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 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.

    

    (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 by 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.

    

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    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' prior notice in writing mailed to
      the
      Company and to each transfer agent of the Common 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' prior notice in writing, mailed to the Rights Agent or successor Rights
      Agent, as the case may be, and to each transfer agent of the Common Shares
      by
      registered or certified mail, and to the holders of the Right Certificates
      by
      first-class mail. If the Rights Agent shall resign or be removed or shall
      otherwise become incapable of acting, the Company shall appoint a successor
      to
      the Rights Agent. If the Company shall fail to make such appointment within
      a
      period of 30 days after giving notice of such removal or after it has been
      notified in writing of such resignation or incapacity by the resigning or
      incapacitated Rights Agent or by the holder of a Right Certificate (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
      a
      corporation organized and doing business under the laws of the United States
      or
      of the State of Wisconsin (or of any other state of the United States so long
      as
      such corporation is authorized to do business as a banking institution in the
      State of Wisconsin), in good standing, having an office in the State of
      Wisconsin, which is authorized under such laws to exercise corporate trust
      or
      stock transfer powers and is subject to supervision or examination by federal
      or
      state authority and which has at the time of its appointment as Rights Agent
      a
      combined capital and surplus of at least $50 million. After appointment, the
      successor Rights Agent shall be vested with the same powers, rights, duties
      and
      responsibilities as if it had been originally named as Rights Agent without
      further act or deed; but the predecessor Rights Agent shall deliver and transfer
      to the successor Rights Agent any property at the time held by it hereunder,
      and
      execute and deliver any further assurance, conveyance, act or deed necessary
      for
      the purpose. Not later than the effective date of any such appointment the
      Company shall file notice thereof in writing with the predecessor Rights Agent
      and each transfer agent of the Common Shares, 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.

    

    
      
        
        

      

      
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    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.

    

    Section
      23. Redemption.
      (a) The
      Board of Directors of the Company may, at its option, at any time prior to
      the
      earlier of (i) the close of business on the twentieth day following such
      time as any Person becomes an Acquiring Person or (ii) the Final Expiration
      Date, redeem all but not less than all the then outstanding Rights at a
      redemption price of $.01 per Right, appropriately adjusted to reflect any stock
      split, stock dividend or similar transaction occurring after the date hereof
      (such redemption price being hereinafter referred to as the "Redemption Price").
      The redemption of the Rights by the Board of Directors may be made effective
      at
      such time, on such basis and with such conditions as the Board of Directors
      in
      its sole discretion may establish. Provided, however, that if, after a Person
      has become an Acquiring Person and following the expiration of the right of
      redemption hereunder but prior to any transaction of the kind described in
      Section 13, (i) a Person who is an Acquiring Person shall have
      transferred or otherwise disposed of a number of Common Shares in one
      transaction or series of transactions, not directly or indirectly involving
      the
      Company or any of its Affiliates, Associates or Subsidiaries, which did not
      result in the occurrence of a transaction of the type described in
      Section 13 such that such Person is thereafter a Beneficial Owner of 10% or
      less of the outstanding shares of Common Stock, and (ii) there are no other
      Persons, immediately following the occurrence of the event described in
      clause (i), who are Acquiring Persons, then the right of redemption shall
      be reinstated and thereafter be subject to the provisions of this
      Section 23. Notwithstanding anything contained in this Agreement to the
      contrary, the Rights shall not be exercisable after the first occurrence of
      a
      transaction of the type described in Section 13 until such time as the
      Company's right of redemption hereunder has expired.

    

    (b) Immediately
      upon the action of the Board of Directors of the Company ordering the redemption
      of the Rights pursuant to paragraph (a) of this Section 23, and without any
      further action and without any notice, the right to exercise the Rights will
      terminate and the only right thereafter of the holders of Rights shall be to
      receive the Redemption Price. The Company shall promptly give public notice
      and
      notice to the Rights Agent of any such redemption; provided, however, that
      the
      failure to give, or any defect in, any such notice shall not affect

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    the
      validity of such redemption. Within 10 days after such action of the Board
      of
      Directors ordering the redemption of the Rights, the Company shall mail a notice
      of redemption to all the holders of the then outstanding Rights at their last
      addresses as they appear upon the registry books of the Rights Agent or, prior
      to the Distribution Date, on the registry books of the transfer agent for the
      Common Shares. Any notice which is mailed in the manner herein provided shall
      be
      deemed given, whether or not the holder receives the notice. Each such notice
      of
      redemption will state the method by which the payment of the Redemption Price
      will be made. Neither the Company nor any of its Affiliates or Associates may
      redeem, acquire or purchase for value any Rights at any time in any manner
      other
      than that specifically set forth in this Section 23, and other than in
      connection with the purchase of Common Shares prior to the Distribution
      Date.

    

    Section
      24. Notice
      of Certain Events.
      (a) In case the Company shall propose, at any time after the Distribution
      Date, (i) to pay any dividend payable in stock of any class to the holders
      of 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, then, in each such case,
      the Company shall give to each holder of a Right Certificate, in accordance
      with
      Section 25 hereof, a notice of such proposed action, which shall specify the
      record date for the purposes of such stock dividend, 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 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 Preferred Shares whichever shall be the
      earlier.

    

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

    

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    Section
      25. Notices.
      Notices
      or demands authorized by this Agreement to be given or made by the Rights Agent
      or by the holder of any 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:

    

    Criticare
      Systems, Inc.

    20925
      Crossroads Circle, Suite 100

    Waukesha,
      WI 53186

    Attention:
      Corporate Secretary

    

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

    

    LaSalle
      Bank National Association

    135
      South
      LaSalle Street, Suite 1960

    Chicago,
      IL 60603

    Attention:
      Mr. Mark Rimkus 

    

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

    

    Section
      26. Supplements
      and Amendments.
      The
      Company may from time to time supplement or amend this Agreement without the
      approval of any holders of Right Certificates in order to cure any ambiguity,
      to
      correct or supplement any provision contained herein which may be defective
      or
      inconsistent with any other provisions herein, or to make any other provisions
      with respect to the Rights which the Company may deem necessary or desirable,
      any such supplement or amendment to be evidenced by a writing signed by the
      Company and the Rights Agent; provided, however, that from and after such time
      as any Person becomes an Acquiring Person, this Agreement shall not be amended
      in any manner which would adversely affect the interests of the holders of
      Rights. Without limiting the foregoing, the Company may at any time prior to
      such time as any Person becomes an Acquiring Person amend this Agreement to
      lower the thresholds set forth in Sections l(a) and 3(a) hereof to not less
      than
      the greater of (i) the sum of .001% and the largest percentage of the
      outstanding Common Shares then known by the Company to be beneficially owned
      by
      any Person (other than the Company, any Subsidiary of the Company, any employee
      benefit plan of the Company or any Subsidiary of the Company, or any entity
      holding Common Shares for or pursuant to the terms of any such plan) and (ii)
      10%.

    

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

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

    

    Section
      28. 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 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
      29. 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
      30. Determinations
      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 of which any Person
      is
      the Beneficial Owner, shall be made in accordance with the last sentence of
      Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange
      Act. The Board of Directors of the Company 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 (including, for purposes of
      clause (y) below, all omissions with respect to the foregoing) which are
      done or made by the Board in good faith, shall (x) be final, conclusive and
      binding on the Company, the Rights Agent, the holders of the Right Certificates
      and all other parties and (y) not subject the Board to any liability to the
      holders of the Rights.

    

    Section
      31. Governing
      Law.
      This
      Agreement and each Right Certificate issued hereunder shall be deemed to be
      a
      contract made under the laws of the State of 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.

    

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

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

    

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

    

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

    

    

    CRITICARE
      SYSTEMS, INC.

    

    BY
       Emil
      H. Soika________________________

          
      Emil H. Soika, President and

          
      Chief Executive Officer

    

    BY
       Joel
      D. Knudson_________________ _____

          
      Joel D. Knudson, Secretary

    

    LASALLE
      BANK NATIONAL ASSOCIATION

    

    BY _/s/
      Mark Rimkus______________________ 

          Its_Vice
      President______________________

    

      BY _/s/
        Arlene Kaminski____________________

    

         
      Its_Vice
      President______________________

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

     

    

    Form
      of
      Right Certificate

    

    Certificate
      No. R-                                                           ____
      Rights

    

    NOT
      EXERCISABLE AFTER MARCH 27, 2017 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS.
      THE RIGHTS ARE SUBJECT TO REDEMPTION AT $.01 PER RIGHT AND TO EXCHANGE ON THE
      TERMS SET FORTH IN THE RIGHTS AGREEMENT.

    

    Right
      Certificate

    

    CRITICARE
      SYSTEMS, 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 Amended and
      Restated Rights Agreement, dated as of March 27, 2007 (the "Rights
      Agreement"), between Criticare Systems, Inc., a Delaware corporation (the
      "Company"), and LaSalle Bank National Association (the "Rights Agent"), to
      purchase from the Company at any time after the Distribution Date (as such
      term
      is defined in the Rights Agreement) and prior to 5:00 P.M., Milwaukee, Wisconsin
      time, on March 27, 2017 at the principal office of the Rights Agent, or at
      the office of its successor as Rights Agent, one one-hundredth of one fully
      paid
      nonassessable share of Preferred Stock, par value $.04 per share (the "Preferred
      Shares"), of the Company, at a purchase price of $25 per full one one-hundredth
      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
      Preferred Shares 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
      March 27, 2007, based on the Preferred Shares as constituted at such date.
      As provided in the Rights Agreement, the Purchase Price and the number of
      Preferred Shares which may be purchased upon the exercise of the Rights
      evidenced by this Right Certificate are subject to modification and adjustment
      upon the happening of certain events.

    

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

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

    

    This
      Right Certificate, with or without other Right Certificates, upon surrender
      at
      the principal office of the Rights Agent, may be exchanged for another Right
      Certificate or Right Certificates of like tenor and date evidencing Rights
      entitling the holder to purchase a like aggregate number of Common 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 $.01
      per
      Right or (ii) may be exchanged in whole or in part for Preferred
      Shares.

    

    The
      Company is not required to issue any fractional Preferred Shares upon the
      exercise of any Right or Rights evidenced hereby. In lieu thereof, the Company
      may, at its sole option, make a cash payment 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.

    

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

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

    

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

    

    

    CRITICARE
      SYSTEMS, INC.

    

    BY_____________________________

    

      Attest:

    

    ________________________________

    

    

    Countersigned:

    

    LASALLE
      BANK NATIONAL ASSOCIATION

    

    BY______________________________

    Authorized
      Signature

    

    

    
      
        
        

      

      
        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:
      ___________________, 20__

    

    

    ________________________________

    Signature

    

    

    Signature
      Guaranteed:

    

    Signatures
      must be guaranteed by a member firm of a registered national securities
      exchange, a member of the National Association of Securities Dealers, Inc.,
      or a
      commercial bank or trust company having an office or correspondent in the United
      States.

    

    ------------------------------------------------------------------------------------------------

    

    The
      undersigned hereby certifies that the Rights evidenced by this Right Certificate
      are not beneficially owned by an Acquiring Person or an Affiliate or Associate
      thereof (as defined in the Rights Agreement).

    

    ________________________________

    Signature

    

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

    

    Form
      of
      Reverse Side of Right Certificate -- continued

    

    FORM
      OF ELECTION TO PURCHASE

    .

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

    

    To
      CRITICARE SYSTEMS, INC.:

    

    The
      undersigned hereby irrevocably elects to exercise Rights represented by this
      Right Certificate to purchase the one one-hundredth 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:________________,
      20__

    

    ________________________________

    Signature

    

    Signature
      Guaranteed:

    

    Signatures
      must be guaranteed by a member firm of a registered national securities
      exchange, a member of the National Association of Securities

     

    
 

    
      
        
        

      

      
        B-5

        
          

        

      

      
        
        

      

    

    Form
      of
      Reverse Side of Right Certificate -- continued

    

    Dealers,
      Inc., or a commercial bank or trust company having an office or correspondent
      in
      the United States.

    

    -------------------------------------------------------------------------------------------------------------------------------------

    

    The
      undersigned hereby certifies that the Rights evidenced by this Right Certificate
      are not beneficially owned by an Acquiring Person or an Affiliate or Associate
      thereof (as defined in the Rights Agreement).

    

    _______________________________

    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

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