Document:

rightsagreement.htm

    
      

      

    

    Exhibit 4.1

    DOR
      BIOPHARMA, INC.

    

    and

    

    American
      Stock Transfer & Trust Company, as Rights Agent

    

    

    

    

    RIGHTS
      AGREEMENT

    

    Dated
      as of June 22, 2007

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    TABLE
      OF CONTENTS

    

    
      	 	 	 
	
              Section
                1.

            	
              Certain
                Definitions

            	
              1

            
	
              Section
                2.

            	
              Appointment
                of Rights Agent

            	
              6

            
	
              Section
                3.

            	
              Issue
                of Right Certificates

            	
              6

            
	
              Section
                4.

            	
              Form
                of Right Certificates

            	
              8

            
	
              Section
                5.

            	
              Countersignature
                and Registration

            	
              9

            
	
              Section
                6.

            	
              Transfer,
                Split Up, Combination and Exchange of Right
                Certificates; Mutilated, Destroyed, Lost or Stolen Right
                Certificates

            	
              10

            
	
              Section
                7.

            	
              Exercise
                of Rights, Purchase Price; Expiration Date of
                Rights

            	
              11

            
	
              Section
                8.

            	
              Cancellation
                and Destruction of Right Certificates

            	
              12

            
	
              Section
                9.

            	
              Availability
                of Preferred Shares

            	
              12

            
	
              Section
                10.

            	
              Preferred
                Shares Record Date

            	
              14

            
	
              Section
                11.

            	
              Adjustment
                of Purchase Price, Number and Kind of Shares and
                Number of Rights

            	
              14

            
	
              Section
                12.

            	
              Certificate
                of Adjusted Purchase Price or Number of
                Shares

            	
              22

            
	
              Section
                13.

            	
              Consolidation,
                Merger or Sale or Transfer of Assets or Earning
                Power

            	
              23

            
	
              Section
                14.

            	
              Fractional
                Rights and Fractional Shares

            	
              27

            
	
              Section
                15.

            	
              Rights
                of Action

            	
              28

            
	
              Section
                16.

            	
              Agreement
                of Right Holders

            	
              28

            
	
              Section
                17.

            	
              Right
                Certificate Holder Not Deemed a Stockholder

            	
              29

            
	
              Section
                18.

            	
              Concerning
                the Rights Agent

            	
              29

            
	
              Section
                19.

            	
              Merger
                or Consolidation or Change of Name of Rights
                Agent

            	
              30

            
	
              Section
                21.

            	
              Change
                of Rights Agent

            	
              32

            
	
              Section
                22.

            	
              Issuance
                of New Right Certificates

            	
              33

            
	
              Section
                23.

            	
              Redemption

            	
              34

            
	
              Section
                24.

            	
              Exchange

            	
              35

            
	
              Section
                25.

            	
              Notice
                of Certain Events

            	
              36

            
	
              Section
                26.

            	
              Notices

            	
              37

            
	
              Section
                27.

            	
              Supplements
                and Amendments

            	
              37

            
	
              Section
                28.

            	
              Successors

            	
              38

            
	
              Section
                29.

            	
              Benefits
                of this Agreement

            	
              38

            
	
              Section
                30.

            	
              Determinations
                and Actions by the Board of Directors

            	
              38

            
	
              Section
                31.

            	
              Severability

            	
              39

            
	
              Section
                32.

            	
              Governing
                Law

            	
              39

            
	
              Section
                33.

            	
              Counterparts

            	
              39

            
	
              Section
                34.

            	
              Descriptive
                Headings

            	
              39

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    RIGHTS
      AGREEMENT

    

    

    Rights
      Agreement, dated as of June 22, 2007
      (“Agreement”), between Dor BioPharma, Inc., a Delaware
      corporation (the “Company”), and American Stock Transfer & Trust Company, as
      Rights Agent (the “Rights Agent”).

    

    The
      Board of Directors of the Company has authorized and declared a
      dividend of one preferred share purchase right (a “Right”) for
      each share of Common Stock (as hereinafter defined) of the Company outstanding
      as of the Close of Business (as defined below) on July 2, 2007 (the
“Record Date”), each Right representing the right to purchase
      one one-thousandth (1/1000) of a Preferred Share, as hereinafter defined
      (subject to adjustment as provided herein), upon the terms and subject to the
      conditions herein set forth, and has further authorized and directed the
      issuance of one Right (subject to adjustment as provided herein) with respect
      to
      each share of Common Stock that shall become outstanding between the Record
      Date
      and the earlier of the Distribution Date and the Expiration Date (as such terms
      are hereinafter defined); provided, however, that Rights may be
      issued with respect to shares of Common Stock that shall become outstanding
      after the Distribution Date and prior to the Expiration Date in accordance
      with
      Section 22.

    

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

    

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

    

    (a)           “Acquiring
      Person” shall mean any Person (as such term is hereinafter defined) who or which
      shall be the Beneficial Owner (as such term is hereinafter defined) of 15%
      or
      more of the shares of Common Stock then outstanding, but shall not include
      an
      Exempt Person (as such term is hereinafter defined); provided,
however, that (i) if the Board of Directors of the Company
      determines in good faith that a Person who would otherwise be an “Acquiring
      Person” became the Beneficial Owner of a number of shares of Common Stock such
      that the Person would otherwise qualify as an “Acquiring Person” inadvertently
      (including, without limitation, because (A) such Person was unaware that it
      beneficially owned a percentage of Common Stock that would otherwise cause
      such
      Person to be an “Acquiring Person” or (B) such Person was aware of the
      extent of its Beneficial Ownership of Common Stock but had no actual knowledge
      of the consequences of such Beneficial Ownership under this Agreement) and
      without any intention of changing or influencing control of the Company, then
      such Person shall not be deemed to be or to have become an “Acquiring Person”
for any purposes of this Agreement unless and until such Person shall have
      failed to divest itself, as soon as practicable (as determined, in good faith,
      by the Board of Directors of the Company), of Beneficial Ownership of a
      sufficient number of shares of Common Stock so that such Person would no longer
      otherwise qualify as an “Acquiring Person”; (ii) if, as of the date hereof
      or prior to the first public

    

    
      
        
          
          

        

        
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    announcement
      of the adoption of this Agreement, any Person is or
      becomes the Beneficial Owner of 15% or more of the shares of Common Stock
      outstanding, such Person shall not be deemed to be or to become an “Acquiring
      Person” unless and until such time as such Person shall, after the first public
      announcement of the adoption of this Agreement, become the Beneficial Owner
      of
      additional shares of Common Stock (other than pursuant to a dividend or
      distribution paid or made by the Company on the outstanding Common Stock or
      pursuant to a split or subdivision of the outstanding Common Stock), unless,
      upon becoming the Beneficial Owner of such additional shares of Common Stock,
      such Person is not then the Beneficial Owner of 15% or more of the shares of
      Common Stock then outstanding; and (iii) no Person shall become an
“Acquiring Person” as the result of an acquisition of shares of Common Stock by
      the Company which, by reducing the number of shares outstanding, increases
      the
      proportionate number of shares of Common Stock beneficially owned by such Person
      to 15% or more of the shares of Common Stock then outstanding, provided,
however, that if a Person shall become the Beneficial Owner of 15%
      or
      more of the shares of Common Stock then outstanding by reason of such share
      acquisitions by the Company and shall thereafter become the Beneficial Owner
      of
      any additional shares of Common Stock (other than pursuant to a dividend or
      distribution paid or made by the Company on the outstanding Common Stock or
      pursuant to a split or subdivision of the outstanding Common Stock), then such
      Person shall be deemed to be an “Acquiring Person” unless upon becoming the
      Beneficial Owner of such additional shares of Common Stock such Person does
      not
      beneficially own 15% or more of the shares of Common Stock then
      outstanding.  For all purposes of this Agreement, any calculation of
      the number of shares of Common Stock outstanding at any particular time,
      including for purposes of determining the particular percentage of such
      outstanding shares of Common Stock 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 Securities Exchange Act of 1934,
      as amended (the “Exchange Act”), as in effect on the date hereof.

    

    (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 Exchange Act, as
      in effect on the date hereof.

    

    (c)           “American
      Stock Exchange” shall mean the American Stock Exchange LLC.

    

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

    

    (i)           which
      such Person or any of such Person’s Affiliates or Associates is deemed to
      beneficially own, directly or indirectly, within the meaning of Rule l3d-3
      or Rule 13d-5 of the General Rules and Regulations under the Exchange Act as
      in
      effect on the date hereof;

    

    
      
        
          
          

        

        
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    (ii)           which
      such Person or any of such Person’s Affiliates or Associates has, directly or
      indirectly, (A) the right to acquire (whether such right is exercisable
      immediately or only after the passage of time or the satisfaction of one or
      more
      conditions or both) pursuant to any agreement, arrangement or understanding,
      whether in writing or not (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, warrants or options, or otherwise; provided,
however, that a Person shall not be deemed the Beneficial Owner of,
      or to
      beneficially own, (x) 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,
      (y) securities which such Person has a right to acquire upon the exercise
      of Rights at any time prior to the time that any Person becomes an Acquiring
      Person or (z) securities issuable upon the exercise of Rights from and
      after the time that any Person becomes an Acquiring Person if such Rights were
      acquired by such Person or any of such Person’s Affiliates or Associates prior
      to the Distribution Date or pursuant to Section 3(a) or Section 22
      hereof (“Original Rights”) or pursuant to Section 11(i) or
      Section 11(n) with respect to an adjustment to Original Rights; or
      (B) the right to vote or dispose of, or to direct the vote or disposition
      of, alone or in concert with others, 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 by reason
      of such agreement, arrangement or understanding if the agreement, arrangement
      or
      understanding to vote such security (1) arises solely from a revocable
      proxy or revocable consent given to such Person or any of such Person's
      Affiliates or Associates 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

    

    (iii)           which
      are beneficially owned, directly or indirectly, by any other Person and with
      respect to 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), written or otherwise, for the purpose
      of
      acquiring, holding, voting (except to the extent contemplated by the proviso
      to
      Section 1(c)(ii)(B)) or disposing of such securities of the Company;

    

    provided,
however,
      that no Person who is an officer,
      director or employee of an Exempt Person shall be deemed, solely by reason
      of
      such Person’s status or authority as such, to be the “Beneficial Owner” of, to
      have “Beneficial Ownership” of or to “beneficially own” any

    

    
      
        
          
          

        

        
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    securities
      that are “beneficially owned” (as defined in this
      Section l(c)), including, without limitation, in a fiduciary capacity, by
      an Exempt Person or by any other such officer, director or employee of an Exempt
      Person.

    

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

    

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

    

    (g)           “Common
      Stock” when used with reference to the Company shall mean the Common Stock, par
      value $.001 per share, of the Company.  “Common Stock” when used with
      reference to any Person other than the Company shall mean the capital stock
      (or,
      in the case of an unincorporated entity, the equivalent 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, together with all rights and benefits (however
      denominated or constituted) relating to such capital stock (including, without
      limitation, any rights or warrants to acquire additional shares of such capital
      stock or other securities or assets, or to participate in any trust for the
      benefit of holders of such shares, or to share in the benefits of any agreements
      or other arrangements for the benefit of such holders), whether or not such
      rights are yet exercisable, and together with any other securities which are
      represented by the certificates for such shares or are transferred in connection
      with transfers of such shares.

    

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

    

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

    

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

    

    (k)           “Equivalent
      Preferred Shares” shall have the meaning set forth in Section 11(b)
      hereof.

    

    (l)           “Exempt
      Person” shall mean the Company or any Subsidiary (as such term is hereinafter
      defined) of the Company, in each case including, without limitation, in its
      fiduciary capacity, or any employee benefit plan of the Company or of any
      Subsidiary of the Company, or any entity or trustee holding Common Stock for
      or
      pursuant to the terms of any such plan or for the purpose of funding

    

    
      
        
          
          

        

        
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    any
      such plan or funding other employee benefits for employees of the
      Company or of any Subsidiary of the Company.

    

    (m)           “Exchange
      Ratio” shall have the meaning set forth in Section 24 hereof.

    

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

    

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

    

    (p)           “Flip-In
      Event” shall have the meaning set forth in Section 11(a)(ii) hereof.

    

    (q)           “NASDAQ”
      shall mean The Nasdaq Stock Market.

    

    (r)           “New
      York Stock Exchange” shall mean the New York Stock Exchange, Inc.

    

    (s)           “Person”
      shall mean any individual, firm, corporation, partnership, limited liability
      company, trust or other entity, and shall include any successor (by merger
      or
      otherwise) to such entity.

    

    (t)           “Preferred
      Shares” shall mean shares of Series A Junior Participating Preferred Stock, par
      value $0.001 per share, of the Company.

    

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

    

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

    

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

    

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

    

    (y)           “Right
      Certificate” shall have the meaning set forth in Section 3 hereof.

    

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

    

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

    

    
      
        
          
          

        

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

    

    (cc)           “Stock
      Acquisition Date” shall mean the first date of the public announcement (which,
      for purposes of this definition, shall include, without limitation, a report
      filed pursuant to Section 13(d) of the Exchange Act) by the Company or an
      Acquiring Person that an Acquiring Person has become such, or such earlier
      date
      as a majority of the Board of Directors shall become aware of the existence
      of
      an Acquiring Person.

    

    (dd)           “Subsidiary”
      of any Person shall mean any corporation or other entity of which securities
      or
      other ownership interests having ordinary voting power sufficient to elect
      a
      majority of the board of directors or other persons performing similar functions
      are beneficially owned, directly or indirectly, by such Person, and any
      corporation or other entity that is otherwise controlled by such Person.

    

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

    

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

    

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

    

    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 be the holders of
      Common Stock) 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.  The Rights Agent shall have no duty to supervise, and
      shall in no event be liable for, the acts or omissions of any such co-Rights
      Agent.  In the event the Company appoints one or more co-Rights
      Agents, the respective duties of the Rights Agent and any co-Rights Agents
      will
      be as the Company may determine.

    

    Section
      3.  Issue of Right Certificates.

    

    (a)           Until
      the Close of Business on the earlier of (i) the tenth day after the Stock
      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 an Exempt Person) of, or of the first public announcement
      of
      the intention of such Person

    

    
      
        
          
          

        

        
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    (other
      than an Exempt Person) to commence, a tender or exchange offer
      the consummation of which would result in any Person (other than an Exempt
      Person) becoming an Acquiring Person (the earlier of such dates being herein
      referred to as the “Distribution Date”, provided, however, that if
      either of such dates occurs after the date of this Agreement and on or prior
      to
      the Record Date, then the Distribution Date shall be the Record Date), (x)
      the
      Rights will be evidenced (subject to the provisions of Section 3(b) hereof)
      by the certificates for Common Stock registered in the names of the holders
      thereof (which certificates for Common Stock shall also be deemed (other than
      for purposes of this Section 3 and any provision of this Agreement referring
      to
      the issuance of Rights Certificates) to be Right Certificates (as such term
      is
      hereinafter defined)) and not by separate Right Certificates, and (y) the Rights
      will be transferable only in connection with the transfer of Common
      Stock.  As soon as practicable after the Distribution Date, subject to
      Section 11(a)(ii) hereof, 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 Stock as of the Close of Business on the
      Distribution Date (other than any Acquiring Person or any Associate or Affiliate
      of an Acquiring Person), at the address of such holder shown on the records
      of
      the Company, a Right Certificate, in substantially the form of Exhibit A hereto
      (a “Right Certificate”), evidencing one Right (subject to
      adjustment as provided herein) for each share of Common Stock so
      held.  As of the Distribution Date, the Rights will be evidenced
      solely by such Right Certificates and may be transferred only by the transfer
      of
      the Rights Certificates as permitted hereby, separately and apart from any
      transfer of one or more shares of Common Stock.

    

    (b)           On
      the Record Date, or as soon as practicable thereafter, the Company will send
      a
      copy of a Summary of Rights to Purchase Preferred Shares, in substantially
      the
      form of Exhibit B hereto (the “Summary of Rights”), by
      first-class, postage-prepaid mail, to each record holder of Common Stock as
      of
      the Close of Business on the Record Date (other than any Acquiring Person or
      any
      Associate or Affiliate of any Acquiring Person), at the address of such holder
      shown on the records of the Company.  With respect to certificates for
      Common Stock outstanding as of the Record Date, until the Distribution Date,
      the
      Rights will be evidenced by such certificates registered in the names of the
      holders thereof together with the Summary of Rights.  Until the
      Distribution Date (or, if earlier, the Expiration Date), the surrender for
      transfer of any certificate for Common Stock outstanding on the Record Date,
      with or without a copy of the Summary of Rights, shall also constitute the
      transfer of the Rights associated with the Common Stock represented
      thereby.

    

    (c)           Rights
      shall be issued in respect of all shares of Common Stock issued or disposed
      of
      (including, without limitation, upon disposition of Common Stock out of treasury
      stock or issuance or reissuance of Common Stock out of authorized but unissued
      shares) after the Record Date but prior to the earlier of the Distribution
      Date
      and the Expiration Date, or in certain circumstances provided in Section 22
      hereof, after the Distribution Date.  Certificates issued for Common
      Stock (including, without limitation, upon transfer of outstanding Common Stock,
      disposition of Common Stock out of treasury stock or issuance or reissuance
      of
      Common Stock out of authorized but unissued shares)

    

    
      
        
          
          

        

        
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    after
      the Record Date but prior to the earlier of the Distribution
      Date and the Expiration Date shall have impressed on, printed on, written on
      or
      otherwise affixed to them the following legend:

    

    This
      certificate also evidences and entitles the holder hereof to
      certain rights as set forth in a Rights Agreement between Dor BioPharma, Inc.
      (the “Company”) and American Stock Transfer & Trust
      Company, as Rights Agent, dated as of June 22, 2007 and as amended from time
      to
      time (the “Rights Agreement”), the terms of which are hereby
      incorporated herein by reference and a copy of which is on file at the principal
      executive offices of the Company.  Under certain circumstances, as set
      forth in the Rights Agreement, such Rights will be evidenced by separate
      certificates and will no longer be evidenced by this certificate.  The
      Company will mail to the holder of this certificate a copy of the Rights
      Agreement without charge after receipt of a written request
      therefor.  Under certain circumstances, as set forth in the Rights
      Agreement, Rights owned by or transferred to any Person who is or becomes an
      Acquiring Person (as defined in the Rights Agreement) and certain transferees
      thereof will become null and void and will no longer be transferable.

    

    With
      respect to such certificates containing the foregoing legend,
      until the earlier of the Distribution Date and the Expiration Date, the Rights
      associated with the Common Stock represented by such certificates shall be
      evidenced by such certificates alone, and the surrender for transfer of any
      such
      certificate, except as otherwise provided herein, shall also constitute the
      transfer of the Rights associated with the Common Stock represented
      thereby.  In the event that the Company purchases or otherwise
      acquires any Common Stock after the Record Date but prior to the Distribution
      Date, any Rights associated with such Common Stock shall be deemed canceled
      and
      retired so that the Company shall not be entitled to exercise any Rights
      associated with the Common Stock which are no longer outstanding.

    

    Notwithstanding
      this paragraph (c), the omission of a legend shall
      not affect the enforceability of any part of this Agreement or the rights of
      any
      holder of the Rights.

    

    Section
      4.  Form of Right Certificates.

    

    (a)           The
      Right Certificates (and the forms of election to purchase shares and of
      assignment to be printed on the reverse thereof) shall be substantially in
      the
      form set forth in 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

    

    
      
        
          
          

        

        
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    thereto
      or with any rule or regulation of any stock exchange or
      interdealer quotation system on which the Rights may from time to time be listed
      or quoted, or to conform to usage.  Subject to the provisions of this
      Agreement, the Right Certificates shall entitle the holders thereof to purchase
      such number of one one-thousandth of a Preferred Share as shall be set forth
      therein at the price per one one-thousandth of a Preferred Share set forth
      therein (the “Purchase Price”), but the number of such shares
      of Common Stock and the Purchase Price shall be subject to adjustment as
      provided herein.

    

    (b)           Any
      Rights Certificate issued pursuant to Section 3(a) or Section 22 hereof that
      represents Rights beneficially owned by: (i) an Acquiring Person or any
      Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring
      Person (or of any such Associate or Affiliate) who becomes a transferee after
      the Acquiring Person becomes such, or (iii) a transferee of an Acquiring Person
      (or of any such Associate or Affiliate) who becomes a transferee prior to or
      concurrently with the Acquiring Person becoming such and receives such Rights
      pursuant to either (A) a transfer (whether or not for consideration) from the
      Acquiring Parson to holders of equity interests in such Acquiring Person or
      to
      any Person with whom such Acquiring Person has any continuing agreement,
      arrangement or understanding regarding the transferred Rights or (B) a transfer
      which the Board of Directors of the Company has determined is part of a plan,
      arrangement or understanding which has a primary purpose or effect of avoidance
      of Section 7(e) hereof, and any Rights Certificate issued pursuant to Section
      6
      or Section 11 hereof upon transfer, exchange, replacement or adjustment of
      any
      other Rights Certificate referred to in this sentence, shall contain (to the
      extent feasible) the following legend:

    

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

    

    Section
      5.  Countersignature and Registration.

    

    (a)           The
      Right Certificates shall be executed on behalf of the Company by its Chairman
      of
      the Board, its Chief Executive Officer, its President or any Vice President,
      either manually or by facsimile signature, shall have affixed thereto the
      Company’s seal or a facsimile thereof and shall be attested by the Secretary or
      an Assistant Secretary of the Company, either manually or by facsimile
      signature.  The Right Certificates shall be countersigned by the
      Rights Agent and shall not be valid for any purpose unless countersigned, either
      manually or by facsimile signature.  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

    

    
      
        
          
          

        

        
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    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 Agreement
      any
      such Person was not such an officer.

    

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

    

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

    

    (a)           Subject
      to the provisions of this Agreement, at any time after the Close of Business
      on
      the Distribution Date and prior to the Close of Business on the 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 or that have been exchanged pursuant to Section 24 hereof) may be
      transferred, split up, combined or exchanged for another Right Certificate
      or
      Right Certificates, entitling the registered holder to purchase a like number
      of
      one one-thousandth of a Preferred Share as the Right Certificate or Right
      Certificates surrendered then entitled such holder to purchase.  Any
      registered holder desiring to transfer, split up, combine or exchange any Right
      Certificate or Right Certificates shall make such request in writing delivered
      to the Rights Agent, and shall surrender the Right Certificate or Right
      Certificates to be transferred, split up, combined or exchanged at the office
      or
      agency of the Rights Agent designated for such purpose.  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.

    

    (b)           Subject
      to the provisions of this Agreement, 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.

    

    
      
        
          
          

        

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

    

    (a)           Except
      as otherwise provided herein, the Rights shall become exercisable on the
      Distribution Date, and thereafter the registered holder of any Right Certificate
      may, subject to Section 11(a)(ii) hereof and except as otherwise provided
      herein, exercise the Rights evidenced thereby in whole or in part upon surrender
      of the Right Certificate, with the form of election to purchase on the reverse
      side thereof duly executed, to the Rights Agent at the office or agency of
      the
      Rights Agent designated for such purpose, together with payment of the Purchase
      Price for each one one-thousandth of a Preferred Share (or other securities,
      cash or other assets, as the case may be) as to which the Rights are exercised,
      at any time which is both after the Distribution Date and prior to the time
      (the
“Expiration Date”) that is the earliest of (i) the Close
      of Business on July 1, 2017 (the “Final Expiration Date”),
      (ii) the time at which the Rights are redeemed as provided in
      Section 23 hereof (the “Redemption Date”) or
      (iii) the time at which such Rights are exchanged as provided in Section 24
      hereof.

    

    (b)           The
      purchase price shall be initially $3.70 for each one one-thousandth of a
      Preferred Share purchasable upon the exercise of a Right (the “Purchase
      Price”).  The Purchase Price and the number of one
      one-thousandths of a Preferred Share or other securities or property to be
      acquired upon exercise of a Right 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) of this Section 7.

    

    (c)           Except
      as otherwise provided herein, upon receipt of a Right Certificate representing
      exercisable Rights, with the form of election to purchase duly executed,
      accompanied by payment of the aggregate Purchase Price for the number of one
      one-thousandth of a Preferred Share 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, in cash or by certified check,
      cashier’s check or money order payable to the order of the Company, the Rights
      Agent shall thereupon promptly (i) (A) requisition from any transfer
      agent of the Preferred Shares, or make available if the Rights Agent is the
      transfer agent for the Preferred Shares, certificates for the number of one
      one-thousandth of a Preferred Share to be purchased, and the Company hereby
      irrevocably authorizes its transfer agent to comply with all such requests,
      or
      (B) if the Company shall have elected to deposit the total number of
      Preferred Shares issuable upon exercise of the Rights hereunder with a
      depositary agent, requisition from the depositary agent depositary receipts
      representing interests in such number of one one-thousandth of a Preferred
      Share
      as are to be purchased (in which case certificates for the Preferred Shares
      represented by such receipts shall be deposited by the transfer agent with
      the
      depositary agent), and the Company hereby directs any such depositary agent
      to
      comply with such request, (ii) when appropriate, requisition from the
      Company the amount of cash to be paid in lieu of issuance of fractional shares
      in accordance with Section 14 hereof, (iii) promptly after receipt of
      such certificates or depositary receipts, cause the same to be delivered to
      or
      upon the order of the registered holder of such Right Certificate, registered
      in
      such name or names as may be designated by such holder and (iv) when
      appropriate, after receipt,

    

    
      
        
          
          

        

        
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    promptly
      deliver such cash to or upon the order of the registered
      holder of such Right Certificate.  In the event that the Company is
      obligated to issue other securities (including Common Stock) of the Company,
      pay
      cash and/or distribute other property pursuant to Section 11(a) hereof, the
      Company will make all arrangements necessary so that such other securities,
      cash
      and/or other property are available for distribution by the Rights Agent, if
      and
      when appropriate.

    

    (d)           Except
      as otherwise provided herein, in case the registered holder of any Right
      Certificate shall exercise less than all of the Rights evidenced thereby, a
      new
      Right Certificate evidencing Rights equivalent to the exercisable 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 Sections 7(e), 11(a)(ii) and 14 hereof.

    

    (e)           Notwithstanding
      anything in this Agreement to the contrary, neither the Rights Agent nor the
      Company shall be obligated to undertake any action with respect to a registered
      holder of Rights 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 form of election to purchase set forth
      on
      the reverse side of the Rights 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.

    

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

    

    Section
      9.  Availability of Preferred Shares.

    

    (a)           The
      Company covenants and agrees that, from and after such time as the Rights become
      exercisable, it will cause to be reserved and kept available out of its
      authorized and unissued Preferred Shares or other securities or any Preferred
      Shares or other securities held in its treasury, the number of Preferred Shares
      or shares of other securities that, as provided in this Agreement (including
      Section 11(a)(iii) hereof), will be sufficient to permit the exercise in full
      of
      all outstanding Rights; provided, however, that the Company shall
      not be required to reserve and keep available Preferred Shares or other

    

    
      
        
          
          

        

        
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    securities
      sufficient to permit the exercise in full of all
      outstanding Rights pursuant to the provisions of Section 11 or
      Section 13 hereof until the time that any Person becomes an Acquiring
      Person.

    

    (b)           So
      long as the Preferred Shares or other securities issuable upon the exercise
      of
      Rights may be listed or admitted to trading on any national securities exchange,
      or quoted on NASDAQ, the Company shall use its best efforts to cause, from
      and
      after such time as the Rights become exercisable, all shares reserved for such
      issuance to be listed or admitted to trading on such exchange, or quoted on
      NASDAQ, upon official notice of issuance upon such exercise.

    

    (c)           From
      and after such time as the Rights become exercisable, the Company shall use
      its
      best efforts, if then necessary to permit the issuance of Preferred Shares
      and/or other securities upon the exercise of Rights, to register and qualify
      such Preferred Shares under the Securities Act and any applicable state
      securities or “Blue Sky” laws (to the extent exemptions therefrom are not
      available), cause such registration statement and qualifications to become
      effective as soon as possible after such filing and keep such registration
      and
      qualifications effective (with a prospectus at all times meeting the
      requirements of the Securities Act) until the earlier of the date as of which
      the Rights are no longer exercisable for such securities and the Expiration
      Date.  The Company may temporarily suspend, for a period of time not
      to exceed 90 days, the exercisability of the Rights in order to prepare and
      file
      a registration statement under the Securities Act and permit it to become
      effective.  Upon 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.  Notwithstanding any provision of this Agreement to
      the contrary, the Rights shall not be exercisable in any jurisdiction unless
      the
      requisite qualification in such jurisdiction shall have been obtained and until
      a registration statement under the Securities Act shall have been declared
      effective, unless an exemption therefrom is available.

    

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

    

    (e)           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 and/or other securities, as the case may be, upon the exercise
      of Rights.  The Company shall not, however, be required to pay any
      transfer tax which may be payable in respect of any transfer or delivery of
      Right Certificates to a Person other than, or the issuance or delivery of
      certificates or depositary receipts for the Preferred Shares and/or other
      securities, as the case may be, in a name other than that of, the registered
      holder of the Right Certificate evidencing Rights surrendered for exercise
      or to
      issue or deliver any certificates or depositary receipts for Preferred Shares
      and/or other securities, as the case

    

    
      
        
          
          

        

        
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    may
      be, upon the exercise of any Rights until any such tax shall have
      been paid (any such tax being payable by that 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 and/or other securities, as the case may be, is issued upon the exercise
      of Rights shall for all purposes be deemed to have become the holder of record
      of the Preferred Shares and/or other securities, as the case may be, 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
      which the 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 or
      depositary receipt shall be dated, the next succeeding Business Day on which
      the
      transfer of 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 stockholder of the Company, including, without
      limitation, the right to vote or 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 and
      Kind of Shares and Number of Rights.  The Purchase Price, the
      number of Preferred Shares or other securities or property purchasable upon
      exercise of each Right and the number of Rights outstanding are subject to
      adjustment from time to time as provided in this Section 11.

    

    (a)           (i)           In
      the event the Company shall at any time after the date of this Agreement
      (A) declare and pay a dividend on the Preferred Shares payable in Preferred
      Shares, (B) subdivide or split the outstanding Preferred Shares,
      (C) combine or consolidate the outstanding Preferred Shares into a smaller
      number of shares 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, the Purchase Price in effect at the time of
      the record date for such dividend or of the effective date of such subdivision,
      split, combination, consolidation or reclassification, and the number and kind
      of shares of capital stock issuable upon exercise of a Right as of the record
      date for such dividend or the effective date of such subdivision, combination
      or
      reclassification, 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, the holder would have owned upon
      such
      exercise and been entitled to receive by virtue of such dividend, subdivision,
      combination or reclassification; provided, however, that in no
      event shall the consideration to be paid upon the exercise of one Right be
      less
      than the aggregate par value of the shares of capital stock of the Company
      issuable upon exercise of one Right.

    

    
      
        
          
          

        

        
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    (ii)           Subject
      to the following paragraph of this subparagraph (ii) and to Section 24
      of this Agreement, in the event any Person shall become an Acquiring Person
      (the
      first occurrence of such event being referred to hereinafter as the
“Flip-In Event”), each holder of a Right shall thereafter have
      a right to receive, upon exercise thereof at a price equal to the then current
      Purchase Price multiplied by the number of one one-thousandth of a Preferred
      Share for which a Right is then exercisable, in accordance with the terms of
      this Agreement and in lieu of Preferred Shares, such number of shares of Common
      Stock of the Company as shall equal the result obtained by (x) multiplying
      the then current Purchase Price by the number of one one-thousandth of a
      Preferred Share for which a Right is then exercisable and dividing that product
      by (y) 50% of the then current per share market price of the Company’s
      Common Stock (determined pursuant to Section 11(d) hereof) on the date such
      Person became an Acquiring Person; provided, however, that the
      Purchase Price (as so adjusted) and the number of one one-thousandth of a
      Preferred Share so receivable upon exercise of a Right shall, following the
      Flip-In Event, be subject to further adjustment as appropriate in accordance
      with Section 11(f) hereof.  At the time such provision is made,
      the Company shall cause to be reserved out of its authorized but unissued (or
      treasury) shares of Common Stock, the lesser of (m) the number of shares of
      Common Stock that will be sufficient to permit the exercise in full of all
      outstanding Rights (other than those referred to in the following paragraph
      below), and (n) the number of shares of Common Stock 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 (in which case
      the
      Company shall also comply with clause (iii) below of this Section
      11(a)).  In the event that any Person shall become an Acquiring Person
      and the Rights shall then be outstanding, the Company shall not take any action
      that would eliminate or diminish the benefits intended to be afforded by the
      Rights.

    

    Notwithstanding
      anything in this Agreement to the contrary, however,
      from and after the Flip-In Event, any Rights that are beneficially owned by
      (x) any Acquiring Person (or any Affiliate or Associate of any Acquiring
      Person), (y) a transferee of any Acquiring Person (or any such Affiliate or
      Associate) who becomes a transferee after the Flip-In Event or (z) a
      transferee of any Acquiring Person (or any such Affiliate or Associate) who
      became a transferee prior to or concurrently with the Flip-In Event pursuant
      to
      either (I) a transfer (whether or not for consideration) from the Acquiring
      Person to holders of its equity securities or to any Person with whom it has
      any
      continuing agreement, arrangement or understanding, whether or not in writing,
      regarding the transferred Rights or (II) a transfer which the Board of
      Directors has determined is part of a plan, arrangement or understanding,
      whether or not in writing, which has the purpose or effect of avoiding the
      provisions of this paragraph, and subsequent transferees of such Persons, shall
      be void without any further action and any existing or subsequent holder of
      such
      Rights shall thereafter have no rights whatsoever with respect to such Rights
      under any provision of this Agreement.  The Company shall use all
      reasonable efforts to ensure that the provisions of this Section 11(a)(ii)
      are
      complied with, but shall have no liability to any holder of Right Certificates
      or other Person as a result of its failure to make any determinations with
      respect to an Acquiring Person or its Affiliates, Associates or transferees
      hereunder.  From and after the Flip-In Event, (A) no Right
      Certificate shall be issued pursuant to Section 3 or Section 6 hereof that
      represents Rights that are or have

    

    
      
        
          
          

        

        
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    become
      void pursuant to the provisions of this paragraph, (B) no
      Right Certificate shall be issued at any time upon the transfer of any Rights
      to
      an Acquiring Person whose Rights would be void pursuant to the preceding
      sentence or any Associate or Affiliate thereof or to any nominee of such
      Acquiring Person, Associate or Affiliate, and (C) any Right Certificate
      delivered to the Rights Agent that represents Rights that are or have become
      void pursuant to the provisions of this paragraph shall be
      canceled.  From and after the occurrence of an event specified in
      Section 13(a) hereof, any Rights that theretofore have not been exercised
      pursuant to this Section 11(a)(ii) shall thereafter be exercisable only in
      accordance with Section 13 and not pursuant to this
      Section 11(a)(ii).

    

    (iii)           In
      the event that there shall not be sufficient shares of Common Stock issued
      but
      not outstanding or authorized but unissued to permit the exercise in full of
      the
      Rights in accordance with the foregoing subparagraph (ii), the Board of
      Directors shall with respect to such deficiency, to the extent permitted by
      applicable law and any material agreements then in effect to which the Company
      is a party (A) determine the excess (such excess, the
“Spread”) of (1) the value of the shares of Common Stock
      issuable upon the exercise of a Right (calculated as provided in the second
      to
      the last sentence of this subparagraph (iii)) in accordance with the foregoing
      subparagraph (ii) (the “Current Value”) over (2) the
      Purchase Price (as adjusted in accordance with the foregoing subparagraph (ii)),
      and (B) with respect to each Right (other than Rights which have become
      void pursuant to the foregoing subparagraph (ii)), make adequate provision
      to substitute for the shares of Common Stock issuable in accordance with the
      foregoing subparagraph (ii), upon exercise of the Right and payment of the
      Purchase Price (as adjusted in accordance therewith), (1) cash, (2) a
      reduction in such Purchase Price, (3) other equity securities of the
      Company (including, without limitation, equity securities which, by virtue
      of
      having dividend, voting and liquidation rights substantially comparable to
      those
      of the shares of Common Stock, are deemed in good faith by the Board of
      Directors to have substantially the same value as the shares of Common Stock
      (such equity securities are hereinafter referred to as “Common Stock
      Equivalents”)), (4) debt securities of the Company, (5) other
      assets, or (6) any combination of the foregoing, having a value which, when
      added to the value of the shares of Common Stock issued upon exercise of such
      Right, shall have an aggregate value equal to the Current Value (less the amount
      of any reduction in such Purchase Price), where such aggregate value has been
      determined by the Board of Directors upon the advice of a nationally recognized
      investment banking firm selected in good faith by the Board of Directors;
provided, however, that if the Company shall not make adequate
      provision to deliver value pursuant to clause (B) above within thirty (30)
      days following the Flip-In Event (the date of the Flip-In Event being the
“Section 11(a)(ii) Trigger Date”), then the Company shall be obligated to
      deliver, to the extent permitted by applicable law and any material agreements
      then in effect to which the Company is a party, upon the surrender for exercise
      of a Right and without requiring payment of such Purchase Price, shares of
      Common Stock (to the extent available), and then, if necessary, cash, which
      shares and cash have an aggregate value equal to the Spread.  If, upon
      the occurrence of the Flip-In Event, the Board of Directors shall determine
      in
      good faith that it is likely that sufficient additional shares of Common Stock
      could be authorized for issuance upon exercise in full of the Rights, then,
      if
      the Board of Directors so elects, the thirty (30) day period set forth above
      may
      be

    

    
      
        
          
          

        

        
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    extended
      to the extent necessary, but not more than ninety (90) days
      after the Section 11(a)(ii) Trigger Date, in order that the Company may
      seek stockholder approval for the authorization of such additional shares (such
      thirty (30) day period, as it may be extended, is herein called the
“Substitution Period”).  To the extent that the
      Company determines that some action need be taken pursuant to the first and/or
      second sentence of this Section 11(a)(iii), the Company (x) shall
      provide, subject to Section 7(e) hereof, the last paragraph of
      Section 11(a)(ii) hereof and the last sentence of this
      Section 11(a)(iii) hereof, that such action shall apply uniformly to all
      outstanding Rights and (y) may suspend the exercisability of the Rights
      until the expiration of the Substitution Period in order to seek any
      authorization of additional shares 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, and shall deliver to the Rights Agent a statement,
      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
      the shares of Common Stock shall be the current per share market price (as
      determined pursuant to Section 11(d)(i)) on the Section 11(a)(ii)
      Trigger Date and the per share or fractional value of any “Common Stock
      Equivalent” shall be deemed to equal the current per share market price of the
      Common Stock.  The Board of Directors of the Company may, but shall
      not be required to, establish procedures to allocate the right to receive shares
      of Common Stock upon the exercise of the Rights among holders of Rights pursuant
      to this Section 11(a)(iii).

    

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

    

    
      
        
          
          

        

        
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    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 and Equivalent 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 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 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 (determined pursuant to Section 11(d) hereof)
      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 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 (determined pursuant to
      Section 11(d) hereof) 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)           Except
      as otherwise provided herein, for the purpose of any computation hereunder,
      the
“current per share market price” of any security (a “Security”
for the purpose of this Section 11(d)(i)) on any date shall be deemed to be
      the average of the daily closing prices per share of such Security for the
      30
      consecutive Trading Days (as such term is hereinafter defined) immediately
      prior
      to such date; provided, however, that in the event that the
      current per share market price of the Security is determined during a period
      following the announcement by the issuer of such Security of (A) a dividend
      or distribution on such Security payable in shares of such Security or
      securities convertible into (or exercisable or exchangeable for) such shares,
      or
      (B) any subdivision, split, combination, consolidation or reclassification
      of such Security, and prior to the expiration of 30 Trading Days after the
      ex-dividend date for such dividend or distribution, or the record date for
      such
      subdivision, split, combination, consolidation or reclassification, then, and
      in
      each such case, the current per share market price shall be appropriately
      adjusted to reflect the current market price per share equivalent of such
      Security.  The closing price for

    

    
      
        
          
          

        

        
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    each
      day shall be the last sale price (during regular trading hours,
      excluding extended trading), 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 by the principal consolidated transaction reporting
      system with respect to securities listed or admitted to trading on the New
      York
      Stock Exchange or, if the Security is not listed or admitted to trading on
      the
      New York Stock Exchange, as reported in the principal consolidated transaction
      reporting system with respect to securities listed on the principal national
      securities exchange on which the Security is listed or admitted to trading
      or,
      if the Security is not listed or admitted to trading on any national securities
      exchange, the last quoted price or, if not so quoted, the average of the high
      bid and low asked prices in the over-the-counter market, as reported by NASDAQ
      or such other system then in use, or, if on any such date the Security is not
      quoted by any such organization, the average of the closing bid and asked prices
      as furnished by a professional market maker making a market in the Security
      selected by the Board of Directors of the Company.  If on any such
      date no market maker is making a market in the Common Stock, the fair value
      of
      such shares on such date as determined in good faith by the Board of Directors
      shall be used, such determination to be described in a statement filed with
      the
      Rights Agent.  The term “Trading Day” shall mean a day on which the
      principal national securities exchange on which the Security is listed or
      admitted to trading is open for the transaction of business or, if the Security
      is not listed or admitted to trading on any national securities exchange, but
      are quoted on NASDAQ, a day on which NASDAQ is in operation or if the Security
      is neither listed nor admitted to trading on any national securities exchange
      nor quoted on NASDAQ, a Business Day.

    

    (ii)           For
      the purpose of any computation hereunder, if the Preferred Shares are publicly
      traded, the “current per share market price” of the Preferred Shares shall be
      determined in accordance with the method set forth in
      Section 11(d)(i).  If the Preferred Shares are not publicly
      traded, the “current per share market price” of the Preferred Shares shall be
      conclusively deemed to be the current per share market price of the Common
      Stock
      as determined pursuant to Section 11(d)(i) (appropriately adjusted to
      reflect any stock split, stock dividend or similar transaction occurring after
      the date hereof), multiplied by 100 (as such number may be appropriately
      adjusted for stock splits, stock dividends, recapitalizations and similar events
      after the Declaration Date).  If neither the Common Stock nor the
      Preferred Shares are publicly held or so listed or traded, “current per share
      market price” shall mean the fair value per share as determined in good faith by
      the Board of Directors of the Company, whose determination shall be described
      in
      a statement filed with the Rights Agent.

    

    (e)           No
      adjustment in the Purchase Price shall be required unless such adjustment would
      require an increase or decrease of at least 1% in the Purchase Price;
provided, however, that any adjustments which by reason of this
      Section 11(e) are not required to be made shall be carried forward and
      taken into account in any subsequent adjustment.  All calculations
      under this Section 11 shall be made to the nearest cent or to the nearest
      ten-thousandth of a share of Common Stock or other share or one ten-millionth
      of
      a Preferred 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

    

    
      
        
          
          

        

        
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    earlier
      of (i) three years from the date of the transaction
      which requires such adjustment or (ii) the Expiration Date.

    

    (f)           If
      as a result of an adjustment made pursuant to Section 11(a) or Section 13
      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 Purchase Price and the number of such other shares so receivable
      upon exercise of a Right and the Purchase Price thereof shall be subject to
      adjustment from time to time in a manner and on terms as nearly equivalent
      as
      practicable to the provisions with respect to the Preferred Shares contained
      in
      Sections 11(a), 11(b), 11(c), 11(e), 11(h), 11(i) and 11(m) hereof, as
      applicable, and the provisions of Sections 7, 9, 10, 13 and 14 hereof with
      respect to the Preferred Shares shall apply on like terms to any such other
      shares.

    

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

    

    (h)           Unless
      the Company shall have exercised its election as provided in Section 11(i),
      upon each adjustment of the Purchase Price as a result of the calculations
      made
      in Sections 11(b) and 11(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 one one-thousandth of a Preferred
      Share (calculated to the nearest one ten-millionth of a Preferred Share)
      obtained by (i) multiplying (x) the number of one one-thousandth of a
      Preferred Share purchasable upon the exercise of a Right immediately prior
      to
      such adjustment by (y) the Purchase Price in effect immediately prior to
      such adjustment and (ii) dividing the product so obtained by the Purchase
      Price in effect immediately after such adjustment.

    

    (i)           The
      Company may elect on or after the date of any adjustment of the Purchase Price
      hereof to adjust the number of Rights held by each holder of Rights, in
      substitution for any adjustment in the number of one one-thousandth of a
      Preferred Share purchasable upon the exercise of a Right.  Each of the
      Rights outstanding after such adjustment of the number of Rights shall be
      exercisable for the number of one one-thousandth of a Preferred Share for which
      a Right was exercisable immediately prior to such adjustment.  Each
      Right held of record prior to such adjustment of the number of Rights shall
      become that number of Rights (calculated to the nearest one 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.  Such record date may be the date on which the
      Purchase Price is adjusted or any day thereafter, but, if the Right Certificates
      have been issued, shall be at least 10 days later than the date of the public
      announcement.  If Right Certificates have not been issued, in the case
      of a stock split, stock dividend or similar

    

    
      
        
          
          

        

        
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    event,
      such adjustment in the number of Rights held by each existing
      holder of Rights shall be effected (unless the Board of Directors otherwise
      elects), by allocating the adjusted number of Rights proportionately among
      all
      shares held by such holder immediately after such stock split, stock dividend
      or
      other event.  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
      may
      bear, at the option of the Company, the adjusted Purchase Price)and shall be
      registered in the names of the holders of record of Right Certificates on the
      record date specified in the public announcement.

    

    (j)           Irrespective
      of any adjustment or change in the Purchase Price or the number of one
      one-thousandth of a Preferred Share issuable upon the exercise of a Right,
      the
      Right Certificates theretofore and thereafter issued may continue to express
      the
      Purchase Price and the number of one one-thousandth of a Preferred Share 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 one one-thousandth of the then par value, if any, of the Preferred Shares
      or other capital stock issuable upon exercise of a Right, 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 or other such shares at such adjusted Purchase
      Price.

    

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

    

    (m)           Anything
      in this Section 11 to the contrary notwithstanding, the Company shall be
      entitled to make such adjustments in the Purchase Price, in addition to those
      adjustments expressly required by this Section 11, as and to the extent
      that the Board of Directors of the Company, in its sole discretion, shall
      determine to be advisable in order that (i) any consolidation or
      subdivision of the Preferred Shares, (ii) issuance wholly for

    

    
      
        
          
          

        

        
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    cash
      of any shares of Preferred Shares at less than the current
      market price, (iii) issuance wholly for cash of Preferred Shares or
      securities which by their terms are convertible into or exchangeable for
      Preferred Shares, (iv) dividends on Preferred Shares payable in shares of
      Preferred Shares or (v) issuance of rights, options or warrants referred to
      hereinabove in Section 11(b), in each case hereafter made by the Company to
      holders of its Preferred Shares shall not be taxable to such stockholders.

    

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

    

    (o)           The
      Company agrees that, after the earlier of the Distribution Date or the Stock
      Acquisition Date, it will not, except as permitted by Sections 23, 24 or 27
      hereof, take (or permit any Subsidiary to take) any action if at the time such
      action is taken it is reasonably foreseeable that such action will diminish
      substantially or eliminate the benefits intended to be afforded by the
      Rights.

    

    Section
      12.  Certificate of Adjusted Purchase Price or
      Number of Shares.  Whenever an adjustment is made as provided in
      Section 11 or 13 hereof, the Company shall 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 Stock or the Preferred Shares a copy of
      such
      certificate and (c) mail a brief summary thereof to each holder of a Right
      Certificate in accordance with Section 25 hereof (if so required under
      Section 25 hereof).  The Rights Agent shall be fully protected in
      relying on any such certificate and on any adjustment therein contained and
      shall not be deemed to have knowledge of any such adjustment unless and until
      it
      shall have received such certificate.

    

    

    

    

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

    

    
      
        
          
          

        

        
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    (a)           In
      the event, directly or indirectly, at any time after the Flip-In Event
      (i) the Company shall consolidate with or shall merge into any other
      Person, (ii) any Person shall 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 Stock shall be changed
      into or exchanged for stock or other securities of any other Person (or of
      the
      Company) or cash or any other property, or (iii) 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 and calculated on the basis of the Company's most recent
      regularly prepared financial statements) to any other Person (other than the
      Company or one or more wholly-owned Subsidiaries of the Company), then upon
      the
      first occurrence of such event, and in each such case, proper provision shall
      be
      made so that: (A) each holder of a Right (other than Rights which have
      become void pursuant to Section 11(a)(ii) hereof) shall thereafter have the
      right to receive, upon the exercise thereof at the then current Purchase Price,
      multiplied by the number of one one-thousandth of a Preferred Share for which
      a
      Right is then exercisable, in accordance with the terms of this Agreement and
      in
      lieu of Preferred Shares, such number of validly authorized and issued, fully
      paid, non-assessable and freely tradeable shares of Common Stock of the
      Principal Party (as such term is hereinafter defined), not subject to any liens,
      encumbrances, rights of first refusal or other adverse claims, as shall equal
      the result obtained by (x) multiplying the then current Purchase Price by the
      number of one one-thousandth of a Preferred Share for which a Right is then
      exercisable and dividing that product by (y) 50% of the current per share market
      price of the Common Stock of such Principal Party (determined pursuant to
      Section 11(d) hereof) on the date of consummation of such consolidation,
      merger, sale or transfer; provided, however, that the then current
      Purchase Price and the number of shares of Common Stock of such Principal Party
      so receivable upon exercise of a Right shall be subject to further adjustment
      as
      appropriate in accordance with Section 11(f) hereof to reflect any events
      occurring in respect of the Common Stock of such Principal Party after the
      occurrence of such consolidation, merger, sale or transfer; (B) such
      Principal Party shall thereafter be liable for, and shall assume, by virtue
      of
      such consolidation, merger, sale or transfer, all the obligations and duties
      of
      the Company pursuant to this Agreement; (C) the term “Company” shall
      thereafter be deemed to refer to such Principal Party; and (D) such
      Principal Party shall take such steps (including, but not limited to, the
      reservation of a sufficient number of its shares of Common Stock in accordance
      with Section 9 hereof (applying the provisions thereof with respect to
      Preferred Shares of the Company to the Common Stock of such Principal Party))
      in
      connection with such consummation of any such transaction as may be necessary
      to
      assure that the provisions hereof shall thereafter be applicable, as nearly
      as
      reasonably may be, in relation to the shares of its Common Stock thereafter
      deliverable upon the exercise of the Rights; provided that, upon the subsequent
      occurrence of any consolidation, merger, sale or transfer of assets or other
      extraordinary transaction in respect of such Principal Party, each holder of
      a
      Right shall thereupon be entitled to receive, upon exercise of a Right and
      payment of the Purchase Price as provided in this Section 13(a), such cash,
      shares, rights, warrants and other property which such holder would have been
      entitled to receive had such holder, at the time of such transaction,

    

    
      
        
          
          

        

        
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    owned
      the Common Stock of the Principal Party receivable upon the
      exercise of a Right pursuant to this Section 13(a), and such Principal
      Party shall take such steps (including, but not limited to, reservation of
      shares of stock) as may be necessary to permit the subsequent exercise of the
      Rights in accordance with the terms hereof for such cash, shares, rights,
      warrants and other property.

    

    (b)           “Principal
      Party” shall mean:

    

    (i)           in
      the case of any transaction described in (i) or (ii) of the first sentence
      of
      Section 13(a) hereof: (A) the Person that is the issuer of the
      securities into which the shares of Common Stock are converted in such merger
      or
      consolidation, or, if there is more than one such issuer, the issuer the shares
      of Common Stock of which have the greatest aggregate market value of shares
      outstanding, or (B) if no securities are so issued, (x) the Person
      that is the other party to the merger, if such Person survives said merger,
      or,
      if there is more than one such Person, the Person the shares of Common Stock
      of
      which have the greatest aggregate market value of shares outstanding or
      (y) if the Person that is the other party to the merger does not survive
      the merger, the Person that does survive the merger (including the Company
      if it
      survives) or (z) the Person resulting from the consolidation; and

    

    (ii)           in
      the case of any transaction described in (iii) of the first sentence of
      Section 13(a) hereof, the Person that is the party receiving the greatest
      portion of the assets or earning power transferred pursuant to such transaction
      or transactions, or, if each Person that is a party to such transaction or
      transactions receives the same portion of the assets or earning power so
      transferred or if the Person receiving the greatest portion of the assets or
      earning power cannot be determined, whichever of such Persons is the issuer
      of
      Common Stock having the greatest aggregate market value of shares
      outstanding;

    

    provided,
      however, that in any such case described in the foregoing
      clause (b)(i) or (b)(ii), if the Common Stock of such Person is not at such
      time or has not been continuously over the preceding 12-month period registered
      under Section 12 of the Exchange Act, then (1) if such Person is a direct
      or indirect Subsidiary of another Person the Common Stock of which is and has
      been so registered, the term “Principal Party” shall refer to such other Person,
      or (2) if such Person is a Subsidiary, directly or indirectly, of more than
      one Person, the Common Stock of all of which is and has been so registered,
      the
      term “Principal Party” shall refer to whichever of such Persons is the issuer of
      Common Stock having the greatest aggregate market value of shares outstanding,
      or (3) if such Person is owned, directly or indirectly, by a joint venture
      formed by two or more Persons that are not owned, directly or indirectly, by
      the
      same Person, the rules set forth in clauses (1) and (2) above shall
      apply to each of the owners having an interest in the venture as if the

    

    
      
        
          
          

        

        
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    Person
      owned by the joint venture was a Subsidiary of both or all of
      such joint venturers, and the Principal Party in each such case shall bear
      the
      obligations set forth in this Section 13 in the same ratio as its interest
      in such Person bears to the total of such interests.

    

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

    

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

    

    (ii)           use
      its best efforts, if the Common Stock of the Principal Party shall be listed
      or
      admitted to trading on the American Stock Exchange or on another national
      securities exchange, to list or admit to trading (or continue the listing of)
      the Rights and the securities purchasable upon exercise of the Rights on the
      American Stock Exchange or such securities exchange, or, if the Common Stock
      of
      the Principal Party shall not be listed or admitted to trading on the American
      Stock Exchange or a national securities exchange, to cause the Rights and the
      securities receivable upon exercise of the Rights to be authorized for quotation
      on NASDAQ or on such other system then in use;

    

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

    

    
      
        
          
          

        

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

    

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

    

    (d)           In
      case the Principal Party has provision in any of its authorized securities
      or in
      its certificate of incorporation or by-laws or other instrument governing its
      affairs, which provision would have the effect of (i) causing such
      Principal Party to issue (other than to holders of Rights pursuant to this
      Section 13), in connection with, or as a consequence of, the consummation
      of a transaction referred to in this Section 13, shares of Common Stock or
      Common Stock Equivalents of such Principal Party at less than the then current
      market price per share thereof (determined pursuant to Section 11(d)
      hereof) or securities exercisable for, or convertible into, Common Stock or
      Common Stock Equivalents of such Principal Party at less than such then current
      market price, or (ii) providing for any special payment, tax or similar
      provision in connection with the issuance of the Common Stock of such Principal
      Party pursuant to the provisions of Section 13, then, in such event, the Company
      hereby agrees with each holder of Rights that it shall not consummate any such
      transaction unless prior thereto the Company and such Principal Party shall
      have
      executed and delivered to the Rights Agent a supplemental agreement providing
      that the provision in question of such Principal Party shall have been canceled,
      waived or amended, or that the authorized securities shall be redeemed, so
      that
      the applicable provision will have no effect in connection with, or as a
      consequence of, the consummation of the proposed transaction.

    

    (e)           The
      Company covenants and agrees that it shall not, at any time after the Flip-In
      Event, enter into any transaction of the type described in clauses (i) through
      (iii) of Section 13(a) hereof if (i) at the time of or immediately
      after such consolidation, merger, sale, transfer or other transaction there
      are
      any charter or by-law provisions or any rights, warrants or other instruments
      or
      securities outstanding or agreements in effect or other actions taken, which
      would materially diminish or otherwise eliminate the benefits intended to be
      afforded by the Rights, (ii) prior to, simultaneously with or immediately
      after such consolidation, merger, sale, transfer or other transaction, the
      stockholders of the Person who constitutes, or would constitute, the Principal
      Party for purposes of Section 13(b) hereof shall have received a
      distribution of Rights previously owned by such Person or any of its Affiliates
      or Associates or (iii) the form or nature of organization of the Principal
      Party would preclude or limit the exercisability of the Rights.  The
      Company shall not consummate any such consolidation, merger, sale or transfer
      unless prior thereto the Company and such other Person shall have executed
      and
      delivered to the Rights Agent a supplemental agreement evidencing compliance
      with this Section 13(e).

    

    
      
        
          
          

        

        
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    Section
      14.  Fractional Rights and Fractional
      Shares.

    

    (a)           The
      Company shall not be required to issue fractions of Rights (except prior to
      the
      Distribution Date in accordance with Section 11(n) hereof) 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 American Stock Exchange or, if the Rights are not listed or
      admitted to trading on the American 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.

    

    (b)           The
      Company shall not be required to issue fractions of Preferred Shares (other
      than
      fractions which are integral multiples of one one-thousandth of a Preferred
      Share) or to distribute certificates which evidence fractional Preferred Shares
      (other than fractions which are integral multiples of one one-thousandth of
      a
      Preferred Share) upon the exercise or exchange of Rights.  Fractions
      of Preferred Shares in integral multiples of one one-thousandth of a Preferred
      Share may, at the election of the Company, be evidenced by depositary receipts,
      pursuant to an appropriate agreement between the Company and a depositary
      selected by it; provided, that such agreement shall provide that the holders
      of
      such depositary receipts shall have all the rights, privileges and preferences
      to which they are entitled as beneficial owners of the Preferred Shares
      represented by such depositary receipts.  In lieu of fractional
      Preferred Shares that are not integral multiples of one one-thousandth of a
      Preferred Share, the Company shall pay to each registered holder 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 as the fraction of one Preferred Share that such holder would otherwise
      receive upon the exercise of the aggregate number of rights exercised by such
      holder. For the purposes of this Section 14(b), the current market value of
      a
      Preferred Share shall be the closing price of a

    

    
      
        
          
          

        

        
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    Preferred
      Share (as determined pursuant to the second sentence of
      Section 11(d)(i) hereof) for the Trading Day immediately prior to the date
      of
      such exercise.

    

    (c)           The
      holder of a Right by the acceptance of the Right expressly waives his right
      to
      receive any fractional Rights or any fractional shares upon exercise or exchange
      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 Stock); and any registered holder
      of
      any Right Certificate (or, prior to the Distribution Date, of the Common Stock),
      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 Stock), on his
      own behalf and for his own benefit, may 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 (or, prior to the Distribution Date, such Common Stock) in the
      manner provided therein 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:

    

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

    

    (b)           after
      the Distribution Date, the Right Certificates are transferable only on the
      registry books of the Rights Agent if surrendered at the office or agency of
      the
      Rights Agent designated for such purpose, duly endorsed or accompanied by a
      proper instrument of transfer;

    

    (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 Common Stock
      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 Common Stock certificate made by anyone other than
      the
      Company or the Rights Agent) for all purposes whatsoever, and neither the
      Company nor the Rights Agent, subject to Section 7(e) hereof, shall be
      affected by any notice to the contrary; and

    

    
      
        
          
          

        

        
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    (d)           notwithstanding
      anything in this Agreement to the contrary, neither the Company nor the Rights
      Agent shall have any liability to any holder of a Right or other Person as
      a
      result of its inability to perform any of its obligations under this Agreement
      by reason of any preliminary or permanent injunction or other order, decree
      or
      ruling issued by a court of competent jurisdiction or by a governmental,
      regulatory or administrative agency or commission, or any statute, rule,
      regulation or executive order promulgated or enacted by any governmental
      authority, prohibiting or otherwise restraining performance of such obligation;
      provided, however, the Company must use its best efforts to have
      any such order, decree or ruling lifted or otherwise overturned as soon as
      possible.

    

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

    

    Section
      18.  Concerning the Rights Agent.

    

    (a)           The
      Company agrees to pay to the Rights Agent reasonable compensation for all
      services rendered by it hereunder and, from time to time, on demand of the
      Rights Agent, 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, its directors, officers, employees and agents for,
      and to hold it and them harmless against, any loss, liability or expense,
      incurred without gross negligence, bad faith or willful misconduct on the part
      of the Rights Agent, for anything done or omitted by the Rights Agent or such
      other indemnified party in connection with the acceptance and administration
      of
      this Agreement, including the costs and expenses of defending against any claim
      of liability arising therefrom, directly or indirectly.

    

    (b)           The
      Rights Agent shall be protected and shall incur no liability for, or in respect
      of any action taken, suffered or omitted by it in connection with its
      administration of this Agreement in reliance upon any Right Certificate or
      certificate for Preferred 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.

    

    
      
        
          
          

        

        
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    (c)           The
      indemnity provided in this Section 18 shall survive the expiration of the
      Rights, the resignation or removal of the Rights Agent and the termination
      of
      this Agreement.

    

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

    

    (a)           Any
      corporation into which the Rights Agent or any successor Rights Agent may be
      merged or with which it may be consolidated, or any corporation resulting from
      any merger or consolidation to which the Rights Agent or any successor Rights
      Agent shall be a party, or any corporation succeeding to the stock transfer
      or
      corporate trust powers 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.

    

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

    

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

    

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

    

    
      
        
          
          

        

        
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    (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 the Chief Executive Officer or the President and the
      Secretary of the Company and delivered to the Rights Agent; and such certificate
      shall be full authorization to the Rights Agent for any action taken or suffered
      in good faith by it under the provisions of this Agreement in reliance upon
      such
      certificate.

    

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

    

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

    

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

    

    
      
        
          
          

        

        
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    (g)           The
      Rights Agent is hereby authorized and directed to accept instructions with
      respect to the performance of its duties hereunder from any person reasonably
      believed by the Rights Agent to be one of the Chief Executive Officer, President
      or Secretary 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 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 it was not grossly negligent in the selection and continued employment
      thereof.

    

    (j)           If,
      with respect to any Rights Certificate surrendered to the Rights Agent for
      exercise or transfer, the certificate contained in the form of assignment or
      the
      form of election to purchase set forth on the reverse thereof, as the case
      may
      be, has not been completed to certify the holder is not an Acquiring Person
      (or
      an Affiliate or Associate thereof) or a transferee thereof, the Rights Agent
      shall not take any further action with respect to such requested exercise or
      transfer without first consulting with the Company.

    

    Section
      21.  Change of Rights Agent.  The
      Rights Agent or any successor Rights Agent may resign and be discharged from
      its
      duties under this Agreement upon 30 days’ notice in writing mailed to the
      Company and to each transfer agent of the Common Stock and the Preferred Shares
      by registered or certified mail, and, following the Distribution Date, to the
      holders of the Right Certificates by first-class mail.  The Company
      may remove the Rights Agent or any successor Rights Agent upon 30 days’ notice
      in writing, mailed to the Rights Agent or successor Rights Agent, as the case
      may be, and to each transfer agent of the Common Stock and the Preferred Shares
      by registered or certified mail, and, following the Distribution Date, 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

    

    
      
        
          
          

        

        
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    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 the laws
      of
      any state of the United States or the District of Columbia, in good standing,
      having an office in the United States, 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 $100
      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 Stock and the Preferred Shares,
      and,
      following the Distribution Date, mail a notice thereof in writing to the
      registered holders of the Right Certificates.  Failure to give any
      notice provided for in this Section 21, however, or any defect therein,
      shall not affect the legality or validity of the resignation or removal of
      the
      Rights Agent or the appointment of the successor Rights Agent, as the case
      may
      be.

    

    Section
      22.  Issuance of New Right
      Certificates.  Notwithstanding any of the provisions of this
      Agreement or of the Rights to the contrary, the Company may, at its option,
      issue new Right Certificates evidencing Rights in such forms as may be approved
      by its Board of Directors to reflect any adjustment or change in the Purchase
      Price and the number or kind or class of shares or other securities or property
      purchasable under the Right Certificates made in accordance with the provisions
      of this Agreement.  In addition, in connection with the issuance or
      sale of Common Stock following the Distribution Date and prior to the Expiration
      Date, the Company may with respect to shares of Common Stock so issued or sold
      pursuant to (i) the exercise of stock options, (ii) under any employee
      plan or arrangement, (iii) upon the exercise, conversion or exchange of
      securities, notes or debentures issued by the Company or (iv) a contractual
      obligation of the Company, in each case existing prior to the Distribution
      Date,
      issue Rights Certificates representing the appropriate number of Rights in
      connection with such issuance or sale.

    

    Section
      23.  Redemption.

    

    (a)           The
      Board of Directors of the Company may, at any time prior to the Flip-In Event,
      redeem all but not less than all the then outstanding Rights at a redemption
      price of $.001 per Right, appropriately adjusted to reflect any stock split,
      stock dividend or similar transaction occurring in respect of the Common Stock
      after the date hereof (the redemption price being hereinafter referred to as
      the
“Redemption Price”).  The redemption of the Rights
      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.  The
      Redemption Price shall be payable, at the option of the Company, in cash, shares
      of

    

    
      
        
          
          

        

        
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    Common
      Stock, or such other form of consideration as the Board of
      Directors shall determine.

    

    (b)           Immediately
      upon the action of the Board of Directors ordering the redemption of the Rights
      pursuant to paragraph (a) of this Section 23 (or at such later time as the
      Board of Directors may establish for the effectiveness of such redemption),
      and
      without any further action and without any notice, the right to exercise the
      Rights will terminate and the only right thereafter of the holders of Rights
      shall be to receive the Redemption Price.  The Company shall promptly
      give public notice of any such redemption; provided, however, that
      the failure to give, or any defect in, any such notice shall not affect the
      validity of such redemption.  Within 10 days after such action of the
      Board of Directors ordering the redemption of the Rights (or such later time
      as
      the Board of Directors may establish for the effectiveness of such redemption),
      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 Stock.  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 shall
      state the method by which the payment of the Redemption Price will be
      made.  Neither the Company nor any of its Affiliates or Associates may
      redeem, acquire or purchase for value any Rights at any time in any manner
      other
      than that specifically set forth in this Section 23 or in Section 24
      hereof, other than in connection with the purchase of Common Stock prior to
      the
      Distribution Date.

    

    (c)           In
      the event that the Board of Directors adopts an effective resolution ordering
      the redemption of the Rights in compliance with Section 23(a), the Company
      may,
      at its option, discharge all of its obligations with respect to the Rights
      by
      (i) issuing a press release announcing the manner of redemption of the Rights
      in
      accordance with this Agreement and (ii) mailing payment of the Redemption Price
      to the registered holders of the Rights at their last addresses as they appear
      on the registry books of the Rights Agent or, prior to the Distribution Date,
      on
      the registry books of the transfer agent of the Common Stock, and upon such
      action, all outstanding Rights and Right Certificates shall be null and void
      without any further action by the Company.

    

    Section
      24.  Exchange.

    

    (a)           The
      Board of Directors of the Company may, at its option, at any time after the
      Flip-In Event, exchange all or part of the then outstanding and exercisable
      Rights (which shall not include Rights that have become void pursuant to the
      provisions of Section 11(a)(ii) hereof) for Common Stock at an exchange
      ratio of one share of Common Stock per Right, appropriately adjusted to reflect
      any stock split, stock dividend or similar transaction occurring in respect
      of
      the Common Stock after the date hereof (such amount per Right being hereinafter
      referred to as the “Exchange
      Ratio”).  Notwithstanding the foregoing, the Board of
      Directors shall not be empowered to effect such exchange at any time after
      an
      Acquiring Person, together with all Affiliates and Associates of such Person,
      shall have become the Beneficial Owner of shares of Common Stock aggregating
      50%
      or

    

    
      
        
          
          

        

        
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    more
      of the shares of Common Stock then outstanding.  From
      and after the occurrence of an event specified in Section 13(a) hereof, any
      Rights that theretofore have not been exchanged pursuant to this
      Section 24(a) shall thereafter be exercisable only in accordance with
      Section 13 and may not be exchanged pursuant to this
      Section 24(a).  The exchange 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.

    

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

    

    (c)           The
      Company may at its option substitute, and, in the event that there shall not
      be
      sufficient shares of Common Stock issued but not outstanding or authorized
      but
      unissued to permit an exchange of Rights for Common Stock as contemplated in
      accordance with this Section 24, the Company shall substitute to the extent
      of such insufficiency, for each share of Common Stock that would otherwise
      be
      issuable upon exchange of a Right, a number of shares having the same rights,
      privileges and preferences as the Common Stock having an aggregate current
      per
      share market price (determined pursuant to Section 11(d) hereof) equal to
      the current per share market price of one share of Common Stock (determined
      pursuant to Section 11(d) hereof) as of the date of such exchange.

    

    (d)           The
      Company shall not be required, pursuant to this Section 24, to issue fractional
      shares of Common Stock or to distribute certificates which evidence fractional
      shares of Common Stock.  In lieu of such fractional shares of Common
      Stock, the Company shall pay to the registered holders of the Right Certificates
      with regard to which such fractional shares of Common Stock would otherwise
      be
      issuable an amount in cash equal to the same fraction of the current per share
      market value of a whole share of Common Stock.  For the purposes of
      this paragraph (d), the current per share market value of a whole share of
      Common Stock shall be the closing price of a share of Common Stock

    

    
      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

    

    

    (as
      determined pursuant to the second sentence of Section 11(d)(i)
      hereof) for the Trading Day immediately prior to the date of exchange pursuant
      to this Section 24.

    

    

    Section
      25.  Notice of Certain Events.

    

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

    

    (b)           In
      case any event described in Section 11(a)(ii) or Section 13 shall
      occur then the Company shall as soon as practicable thereafter give to each
      holder of a Right Certificate (or if occurring prior to the Distribution Date,
      the holders of the Common Stock) in accordance with Section 26 hereof, a
      notice of the occurrence of such event, which notice shall describe such event
      and the consequences of such event to holders of Rights under Section 11(a)(ii)
      and Section 13 hereof.

    

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

    

    
      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

    

    

    Dor
      BioPharma, Inc.

    1101
      Brickell Avenue

    Suite
      701-S

    Miami,
      FL 33131

    Attention:  President

    

    

    Copy
      to:

    

    Edwards
      Angell Palmer & Dodge LLP

    350
      East Las Olas Blvd., Suite 1150

    Fort
      Lauderdale, FL  33301-4215

    Attention:  Leslie
      J. Croland, Esq.

    

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

    

    American
      Stock Transfer & Trust Company

    6201
      15th Avenue, Operations Center

    Brooklyn,
      New York 11219

    Attn:  Herbert
      J. Lemmer, Vice President and General
      Counsel.

    

    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
      27.  Supplements and
      Amendments.  Except as provided in the penultimate sentence of
      this Section 27, for so long as the Rights are then redeemable, the Company
      may in its sole and absolute discretion, and the Rights Agent shall if the
      Company so directs, supplement or amend any provision of this Agreement in
      any
      respect without the approval of any holders of the Rights.  At any
      time when the Rights are no longer redeemable, except as provided in the
      penultimate sentence of this Section 27, the Company may, and the Rights
      Agent shall, if the Company so directs, supplement or amend this Agreement
      without the approval of any holders of Rights, provided that no such
      supplement or amendment may (a) adversely affect the interests of the
      holders of Rights as such (other than an Acquiring Person or an Affiliate or
      Associate of an Acquiring Person), (b) cause this Agreement again to become
      amendable other than in accordance with this sentence or (c) cause the
      Rights again to become redeemable.  Notwithstanding anything contained
      in this Agreement to the contrary, no supplement or amendment shall be made
      which changes the Redemption Price.  Upon the delivery of a
      certificate from an appropriate officer of the Company which states that the
      supplement or amendment is in compliance with the terms of this Section 27,
      the Rights Agent shall execute such

    

    
      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

    

    

    supplement
      or amendment, provided that any supplement or
      amendment that does not amend this Agreement in a manner adverse to the Rights
      Agent shall become effective immediately upon execution by the Company, whether
      or not also executed by the Rights Agent, and no supplement or amendment that
      changes the rights, duties or liabilities of the Rights Agent in a manner
      adverse to the Rights Agent shall be effective without the consent of the Rights
      Agent.

    

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

    

    Section
      29.  Benefits of this
      Agreement.  Nothing in this Agreement shall be construed to give
      to any Person other than the Company, the Rights Agent and the registered
      holders of the Right Certificates (and, prior to the Distribution Date, the
      Common Stock) 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 Stock).

    

    Section
      30.  Determinations and Actions by the Board of
      Directors.  The Board of Directors of the Company shall have the
      exclusive power and authority to administer this Agreement and to exercise
      the
      rights and powers specifically granted to the Board of Directors of the Company
      or to the Company, or as may be necessary or advisable in the administration
      of
      this Agreement, including, without limitation, the right and power to
      (i) interpret the provisions of this Agreement and (ii) make all
      determinations deemed necessary or advisable for the administration of this
      Agreement (including, without limitation, a determination to redeem or not
      redeem the Rights or to amend or not amend this Agreement).  All such
      actions, calculations, interpretations and determinations that are done or
      made
      by the Board of Directors of the Company in good faith shall be final,
      conclusive and binding on the Company, the Rights Agent, the holders of the
      Rights, as such, and all other parties and shall not subject the Board of
      Directors to any liability to the holders of the Rights.

    

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

    

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

    

    Section
      33.  Counterparts.  This Agreement
      may be executed in any number of counterparts and each of such counterparts
      shall for all purposes be deemed to be an

    

    
      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

    

    

    original,
      and all such counterparts shall together constitute but one
      and the same instrument.

    

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

    

    

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

     

                                    DOR
      BIOPHARMA,
      INC.

    

                                    By:
      /s/
      Christopher J. Schaber

                        Name:
      Christopher J. Schaber

                            Title:  President
      and Chief Executive Officer

    

     

    

    American
      Stock Transfer & Trust Company

    as
      Rights Agent

     

    

    By: /s/
      Herbert J.
      Lemmer           

    Name: Herbert
      J. Lemmer

    Title:Vice
      President and General Counsel

    

                                                                  

     

     

                                                          39

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      
Exhibit A

    

    Form
      of Right Certificate

    

    Certificate
      No. R-______

    

    NOT
      EXERCISABLE AFTER JULY 1, 2017 OR EARLIER IF REDEMPTION OR
      EXCHANGE OCCURS.  THE RIGHTS ARE SUBJECT TO REDEMPTION AT $.001 PER
      RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS
      AGREEMENT.  UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS
      AGREEMENT, RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN
      ACQUIRING PERSON OR ANY ASSOCIATES OR AFFILIATES THEREOF (AS SUCH TERMS ARE
      DEFINED IN THE RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES THEREOF WILL BECOME
      NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.  [THE RIGHTS
      REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A
      PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF
      AN
      ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS
      AGREEMENT).  ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS
      REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED
      IN
      SECTION 7(E) OF SUCH AGREEMENT.]1

    

    

    

    RIGHT
      CERTIFICATE

    

    DOR
      BIOPHARMA, INC.

    

    This
      certifies that ____________________________ or registered
      assigns, is the registered owner of the number of Rights set forth above, each
      of which entitles the owner thereof, subject to the terms, provisions and
      conditions of the Rights Agreement, dated as of June 22, 2007, as the same
      may
      be amended from time to time (the “Rights Agreement”), between Dor BioPharma,
      Inc., a Delaware corporation (the “Company”), and American Stock Transfer &
Trust Company, as Rights Agent (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., City of New York time, on July 1,
      2017
      at the office or agency of the Rights Agent designated for such purpose, or
      of
      its successor as Rights Agent, one one-thousandth of a fully paid non-assessable
      share of Series A

    

      

    

      
      1
        The portion of the legend in brackets shall be inserted only if
        applicable and shall replace the preceding sentence.

    

    

    
      
        
          
          

        

        
          A-1

          
            

          

        

        
          
          

        

      

    

    

    Junior
      Participating Preferred Stock, par value $.001 per share (the
“Preferred Shares”), of the Company at a purchase price of $3.70 per one
      one-thousandth of a Preferred Share (the “Purchase Price”), upon presentation
      and surrender of this Right Certificate with the Form of Election to Purchase
      duly executed.  The number of Rights evidenced by this Rights
      Certificate (and the number of one one-thousandth of a Preferred Share which
      may
      be purchased upon exercise hereof) set forth above, and the Purchase Price
      set
      forth above, are the number and Purchase Price as of June 22, 2007, based on
      the
      Preferred Shares as constituted at such date.  As provided in the
      Rights Agreement, the Purchase Price, and the number of one one-thousandth
      of a
      Preferred Share (or other securities or property) which may be purchased upon
      the exercise of the Rights and the number of Rights evidenced by this Right
      Certificate are subject to modification and adjustment upon the happening of
      certain events, and in certain circumstances may be exercised to purchase
      securities of issuers other than the Company.

    

    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 office or
      agency of the Rights Agent.  The Company will mail to the holder of
      this Right Certificate a copy of the Rights Agreement without charge after
      receipt of a written request therefor.

    

    This
      Right Certificate, with or without other Right Certificates,
      upon surrender at the office or agency of the Rights Agent designated for such
      purpose, may be exchanged for another Right Certificate or Right Certificates
      of
      like tenor and date evidencing Rights entitling the holder to purchase a like
      aggregate number of one one-thousandth of a Preferred Share 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 $.001 per Right (payable in cash, shares of Common Stock or other
      consideration, and appropriately adjusted to reflect any stock split, stock
      dividend or similar transaction occurring after the date hereof) or (ii) may
      be
      exchanged in whole or in part for shares of the Company’s Common Stock or other
      equity securities of the Company.

    

    Subject
      to the provisions of the Rights Agreement, the Rights
      evidenced by this Right Certificate (and the Rights Agreement itself) may be
      amended by action of the Company's Board of Directors.

    

    No
      fractional Preferred Shares will be issued upon the exercise or
      exchange of any Right or Rights evidenced hereby (other than fractions which
      are
      integral multiples of one

    

    
      
        
          
          

        

        
          A-2

          
            

          

        

        
          
          

        

      

    

    

    one-thousandth
      of a Preferred Share, which may, at the election of
      the Company, be evidenced by depositary receipts), but in lieu thereof a cash
      payment will be made, as provided in the Rights Agreement.

    

    No
      holder of this Right Certificate, as such, 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 or exchange 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 or exchanged as provided in the Rights
      Agreement.

    

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

    

    WITNESS
      the facsimile signature of the proper officers of the Company
      and its corporate seal.  Dated as of June 22, 2007.

    

    DOR
      BIOPHARMA, INC.

    

    

    By:______________________________

    Christopher
      J.
      Schaber, Ph.D.

    President
      and
      CEO

    

    ATTEST:

    

    ____________________________________

    [Name]

    [Title]

    

    

    Countersigned:

    

    

    American
      Stock Transfer & Trust Company, as Rights Agent

    

    

    

    By   ___________________________________

     Herbert
      J.
      Lemmer

     Vice
      President
      and General Counsel

    

    
      
        
          
          

        

        
          A-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)

    

    ____________
      Rights represented by this Right Certificate, together
      with all right, title and interest therein, and does hereby irrevocably
      constitute and appoint __________________

    Attorney,
      to transfer said Rights on the books of the within-named
      Company, with full power of substitution.

    

    Dated:  ______________________

    

    

    _______________________________

    Signature

    

    Signature
      Medallion Guaranteed:

    

    Signatures
      must be medallion 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.

    

    ..............................................................................................................

    (To
      be completed)

    

    The
      undersigned hereby certifies that the Rights evidenced by this
      Right Certificate are not beneficially owned by, were not acquired by the
      undersigned from, and are not being assigned to an Acquiring Person or an
      Affiliate or Associate thereof (as defined in the Rights Agreement).

    

    

    _______________________________

    Signature

    

    
      
        
          
          

        

        
          A-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 Rights Certificate)

    

    To
      DOR BIOPHARMA, INC.

    

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

    

    Please
      insert social security

    or
      other identifying number

    

    _________________________________________________________________________

    (Please
      print name and address)

    

    _________________________________________________________________________

    

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

    

    Please
      insert social security

    or
      other identifying number

    

    _________________________________________________________________________

    (Please
      print name and address)

    

    _________________________________________________________________________

    

    Dated:________________________

    

    _______________________________

    Signature

    

    (Signature
      must conform to holder specified on Right
      Certificate)

    

    Signature
      Medallion Guaranteed:

    

    Signatures
      must be medallion 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.

    

    
      
        
          
          

        

        
          A-5

          
            

          

        

        
          
          

        

      

    

    

    Form
      of Reverse Side of Right Certificate - continued

    

    _________________________________________________________________________

    (To
      be completed)

    

    The
      undersigned certifies that the Rights evidenced by this Right
      Certificate are not beneficially owned by, and were not acquired by the
      undersigned from, 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.

    

    

    
      
        
          
          

        

        
          A-6

          
            

          

        

        
          
          

        

      

    

    Exhibit B

    

    UNDER
      CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT,
      RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING
      PERSON (AS DEFINED IN THE RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES THEREOF
      WILL
      BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.

    

    SUMMARY
      OF RIGHTS TO PURCHASE

    PREFERRED
      SHARES OF

    DOR
      BIOPHARMA, INC.

    

    Effective
      June 22, 2007, the Board of Directors of Dor BioPharma,
      Inc. (the “Company”) declared a dividend of one preferred share
      purchase right (a “Right”) for each outstanding share of common stock, par value
      $.001 per share, of the Company (the “Common
      Stock”).  The dividend is payable on July 12, 2007 to the
      stockholders of record on July 2, 2007 (the “Record Date”).  Each Right entitles the registered holder
      to
      purchase from the Company one one-thousandth of a share of Series A Junior
      Participating Preferred Stock, par value $0.001 per share (the
“Preferred Shares”), of the Company, at a price of $3.70 per
      one one-thousandth of a Preferred Share (the “Purchase Price”),
      subject to adjustment.  The description and terms of the Rights are
      set forth in a Rights Agreement, as the same may be amended from time to time
      (the “Rights Agreement”), between the Company and American
      Stock Transfer & Trust Company, as Rights Agent (the “Rights
      Agent”).

    

    Until
      the earlier to occur of (i) 10 days following a public
      announcement that a person or group of affiliated or associated persons (with
      certain exceptions, an “Acquiring Person”) has acquired
      beneficial ownership of 15% or more of the outstanding shares of Common Stock
      or
      (ii) 10 business days (or such later date as may be determined by action of
      the Board of Directors prior to such time as any person or group of affiliated
      persons becomes an Acquiring Person) following the commencement of, or
      announcement of an intention to make, a tender offer or exchange offer the
      consummation of which would result in the beneficial ownership by a person
      or
      group of 15% or more of the outstanding shares of Common Stock (the earlier
      of
      such dates being called the “Distribution Date”), the Rights
      will be evidenced, with respect to any of the Common Stock certificates
      outstanding as of the Record Date, by such Common Stock certificate together
      with this Summary of Rights.

    

    The
      Rights Agreement provides that, until the Distribution Date (or
      earlier redemption or expiration of the Rights), the Rights will be transferred
      with and only with the Common Stock.  Until the Distribution Date (or
      earlier redemption or expiration of the Rights), new Common Stock certificates
      issued after the Record Date or upon transfer or

    

    
      
         

        
          B-1

          
            

          

        

        
          
          

        

      

    

    

    new
      issuances of Common Stock will contain a notation incorporating
      the Rights Agreement by reference.  Until the Distribution Date (or
      earlier redemption or expiration of the Rights), the surrender for transfer
      of
      any certificates for shares of Common Stock outstanding as of the Record Date,
      even without such notation or a copy of this Summary of Rights, will also
      constitute the transfer of the Rights associated with the shares of Common
      Stock
      represented by such certificate.  As soon as practicable following the
      Distribution Date, separate certificates evidencing the Rights (“Right
      Certificates”) will be mailed to holders of record of the Common Stock
      as of the close of business on the Distribution Date and such separate Right
      Certificates alone will evidence the Rights.

    

    The
      Rights are not exercisable until the Distribution
      Date.  The Rights will expire on July 1, 2017 (the “Final
      Expiration Date”), unless the Final Expiration Date is advanced or
      extended or unless the Rights are earlier redeemed or exchanged by the Company,
      in each case as described below.

    

    The
      Purchase Price payable, and the number of Preferred Shares or
      other securities or property issuable, upon exercise of the Rights is subject
      to
      adjustment from time to time to prevent dilution (i) in the event of a stock
      dividend on, or a subdivision, combination or reclassification of, the Preferred
      Shares, (ii) upon the grant to holders of the Preferred Shares of certain rights
      or warrants to subscribe for or purchase Preferred Shares at a price, or
      securities convertible into Preferred Shares with a conversion price, less
      than
      the then-current market price of the Preferred Shares or (iii) upon the
      distribution to holders of the Preferred Shares of evidences of indebtedness
      or
      assets (excluding regular periodic cash dividends or dividends payable in
      Preferred Shares) or of subscription rights or warrants (other than those
      referred to above).

    

    The
      number of outstanding Rights and the number of one one-thousandth
      of a Preferred Share issuable upon exercise of each Right are also subject
      to
      adjustment in the event of a stock split of the Common Stock or a stock dividend
      on the Common Stock payable in shares of Common Stock or subdivisions,
      consolidations or combinations of the Common Stock occurring, in any such case,
      prior to the Distribution Date.

    

    Preferred
      Shares purchasable upon exercise of the Rights will not
      be redeemable.  Each Preferred Share will be entitled to a quarterly
      dividend payment of 1000 times the dividend declared per share of Common
      Stock.  In the event of liquidation, the holders of the Preferred
      Shares will be entitled to an aggregate payment of 1000 times the aggregate
      payment made per share of Common Stock.  Each Preferred Share will
      have 1000 votes, voting together with the Common Stock.  In the event
      of any merger, consolidation or other transaction in which Common Stock is
      exchanged, each Preferred Share will be entitled to receive 1000 times the
      amount received per share of Common Stock.  These rights are protected
      by customary antidilution provisions.

    

    Because
      of the nature of the Preferred Shares’ dividend,
      liquidation and voting rights, the value of the one one-thousandth interest
      in a
      Preferred Share purchasable upon exercise of each Right should approximate
      the
      value of one share of Common Stock.

    

    
      
         

        
          B-2

          
            

          

        

        
          
          

        

      

    

    

    From
      and after the occurrence of an event described in Section
      11(a)(ii) of the Rights Agreement, if the Rights evidenced by this Right
      Certificate are or were at any time on or after the earlier of (x) the date
      of
      such event and (y) the Distribution Date (as such term is defined in the Rights
      Agreement) acquired or beneficially owned by an Acquiring Person or an Associate
      or Affiliate of an Acquiring Person (as such terms are defined in the Rights
      Agreement), such Rights shall become void, and any holder of such Rights shall
      thereafter have no right to exercise such Rights.

    

    In
      the event that, after a person or group has become an Acquiring
      Person, the Company is acquired in a merger or other business combination
      transaction or 50% or more of its consolidated assets or earning power are
      sold,
      proper provisions will be made so that each holder of a Right (other than Rights
      beneficially owned by an Acquiring Person or an Associate or Affiliate of an
      Acquiring Person which will have become void) will thereafter have the right
      to
      receive upon the exercise of a Right that number of shares of common stock
      of
      the person with whom the Company has engaged in the foregoing transaction (or
      its parent) that at the time of such transaction have a market value of two
      times the exercise price of the Right.

    

    At
      any time after any person or group becomes an Acquiring Person and
      prior to the earlier of one of the events described in the previous paragraph
      or
      the acquisition by such Acquiring Person of 50% or more of the outstanding
      shares of Common Stock, the Board of Directors of the Company may exchange
      the
      Rights (other than Rights owned by such Acquiring Person which will have become
      void), in whole or in part, for shares of Common Stock at an exchange ratio
      of
      one share of Common Stock per Right (subject to adjustment).

    

    With
      certain exceptions, no adjustment in the Purchase Price will be
      required until cumulative adjustments require an adjustment of at least 1%
      in
      such Purchase Price.  No fractional Preferred Shares will be issued
      (other than fractions which are integral multiples of one one-thousandth of
      a
      Preferred Share, which may, at the election of the Company, be evidenced by
      depositary receipts), and in lieu thereof an adjustment in cash will be made
      based on the current market price of the Preferred Shares.

    

    At
      any time prior to the time an Acquiring Person becomes such, the
      Board of Directors of the Company may redeem the Rights in whole, but not in
      part, at a price of $.001 per Right (the “Redemption Price”) payable, at the
      option of the Company, in cash, shares of Common Stock or such other form of
      consideration as the Board of Directors of the Company shall
      determine.  The redemption of the Rights 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.  Immediately upon any redemption of the
      Rights, the right to exercise the Rights will terminate and the only right
      of
      the holders of Rights will be to receive the Redemption Price.

    

    For
      so long as the Rights are then redeemable, the Company may,
      except with respect to the Redemption Price, amend the Rights Agreement in
      any
      manner.  After the Rights are no longer redeemable, the Company may,
      except with respect to the

    

    
      
         

        
          B-3

          
            

          

        

        
          
          

        

      

    

    

    Redemption
      Price, amend the Rights Agreement in any manner that does
      not adversely affect the interests of holders of the Rights.

    

    Until
      a Right is exercised or exchanged, the holder thereof, as such,
      will have no rights as a stockholder of the Company, including, without
      limitation, the right to vote or to receive dividends.

    

    A
      copy of the Rights Agreement has been filed with the Securities and
      Exchange Commission as an Exhibit to a Registration Statement on Form
      8-A.  A copy of the Rights Agreement is available free of charge from
      the Company.  This summary description of the Rights does not purport
      to be complete and is qualified in its entirety by reference to the Rights
      Agreement, as the same may be amended from time to time, which is hereby

    

    
      
         

        
          B-4formofrightcert.htm

    
      

      

    

    Exhibit 4.2

    Form
      of Right Certificate

    

    Certificate
      No. R-______

    

    NOT
      EXERCISABLE AFTER JULY 1, 2017 OR EARLIER IF REDEMPTION OR EXCHANGE
      OCCURS.  THE RIGHTS ARE SUBJECT TO REDEMPTION AT $.001 PER RIGHT AND
      TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.  UNDER
      CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS OWNED BY
      OR
      TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING PERSON OR ANY
      ASSOCIATES OR AFFILIATES THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS
      AGREEMENT) AND CERTAIN TRANSFEREES THEREOF WILL BECOME NULL AND VOID AND WILL
      NO
      LONGER BE TRANSFERABLE.  [THE RIGHTS REPRESENTED BY THIS RIGHTS
      CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN
      ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH
      TERMS ARE DEFINED IN THE RIGHTS AGREEMENT).  ACCORDINGLY, THIS RIGHTS
      CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE
      CIRCUMSTANCES SPECIFIED IN SECTION 7(E) OF SUCH AGREEMENT.]1

    

    

    

    RIGHT
      CERTIFICATE

    

    DOR
      BIOPHARMA, INC.

    

    This
      certifies that ____________________________ or registered assigns, is the
      registered owner of the number of Rights set forth above, each of which entitles
      the owner thereof, subject to the terms, provisions and conditions of the Rights
      Agreement, dated as of January __, 2007, as the same may be amended from time
      to
      time (the “Rights Agreement”), between Dor BioPharma, Inc., a Delaware
      corporation (the “Company”), and American Stock Transfer & Trust Company, as
      Rights Agent (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., City of New York time, on July 1, 2017 at the office
      or
      agency of the Rights Agent designated for such purpose, or of its successor
      as
      Rights Agent, one one-thousandth of a fully paid non-assessable share of Series
      A Junior Participating Preferred Stock, par value $.001 per share (the
“Preferred Shares”), of the Company at a purchase price of $3.70 per one
      one-thousandth of a Preferred Share (the “Purchase Price”), upon presentation
      and surrender of this Right Certificate with the Form of Election to Purchase
      duly executed.  The number of Rights evidenced by this Rights
      Certificate (and the number of one one-thousandth of a Preferred Share which
      may
      be purchased upon exercise hereof) set forth above, and the Purchase Price
      set
      forth above, are the number and Purchase Price as of June 22, 2007, based on
      the
      Preferred Shares as constituted at such date.  As provided in the
      Rights Agreement, the Purchase Price, and the number of one one-thousandth
      of a
      Preferred Share (or other securities or property) which may be purchased upon
      the exercise of the Rights and the number of Rights evidenced by this Right
      Certificate are subject to modification and adjustment upon the happening of
      certain events, and in certain circumstances may be exercised to purchase
      securities of issuers other than the Company.

    

    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 office or
      agency of the Rights Agent.  The Company will mail to the holder of
      this Right Certificate a copy of the Rights Agreement without charge after
      receipt of a written request therefor.

    

    This
      Right Certificate, with or without other Right Certificates, upon surrender
      at
      the office or agency of the Rights Agent designated for such purpose, may be
      exchanged for another Right Certificate or Right Certificates of like tenor
      and
      date evidencing Rights entitling the holder to purchase a like aggregate number
      of one one-thousandth of a Preferred Share 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 $.001
      per Right (payable in cash, shares of Common Stock or other consideration,
      and
      appropriately adjusted to reflect any stock split, stock dividend or similar
      transaction occurring after the date hereof) or (ii) may be exchanged in whole
      or in part for shares of the Company’s Common Stock or other equity securities
      of the Company.

    

    Subject
      to the provisions of the Rights Agreement, the Rights evidenced by this Right
      Certificate (and the Rights Agreement itself) may be amended by action of the
      Company's Board of Directors.

    

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

    

    No
      holder
      of this Right Certificate, as such, 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 or exchange 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 or exchanged as provided in the Rights
      Agreement.

    

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

    

    WITNESS
      the facsimile signature of the proper officers of the Company and its corporate
      seal.  Dated as of _________ __, 2007.

    

    DOR
      BIOPHARMA, INC.

    

    

    By:______________________________

    [Name]

    [Title]

    ATTEST:

    

    ____________________________________

    [Name]

    [Title]

    

    

    Countersigned:

    

    

    American
      Stock Transfer & Trust Company,

    as
      Rights
      Agent

    

    

    

    By__________________________________

    [Name]

    [Title]

    

      

    

      
      1
        The
        portion of the legend in brackets shall be inserted only if applicable and
        shall
        replace the preceding sentence.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    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)

    

    ____________
      Rights represented by this Right Certificate, together with all right, title
      and
      interest therein, and does hereby irrevocably constitute and appoint
      __________________

    Attorney,
      to transfer said Rights on the books of the within-named Company, with full
      power of substitution.

    

    Dated:  ______________________

    

    

    _______________________________

    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.

    

    ..............................................................................................................

    (To
      be
      completed)

    

    The
      undersigned hereby certifies that the Rights evidenced by this Right Certificate
      are not beneficially owned by, were not acquired by the undersigned from, and
      are not being assigned to an Acquiring Person or an Affiliate or Associate
      thereof (as defined in the Rights Agreement).

    

    

    _______________________________

    Signature

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    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 Rights Certificate)

    

    To
      DOR
      BIOPHARMA, INC.

    

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

    

    Please
      insert social security

    or
      other
      identifying number

    

    _________________________________________________________________________

    (Please
      print name and address)

    

    _________________________________________________________________________

    

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

    

    Please
      insert social security

    or
      other
      identifying number

    

    _________________________________________________________________________

    (Please
      print name and address)

    

    _________________________________________________________________________

    

    Dated:________________________

    

    _______________________________

    Signature

    

    (Signature
      must conform to holder specified on Right Certificate)

    

    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.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Form
      of
      Reverse Side of Right Certificate - continued

    

    _________________________________________________________________________

    (To
      be
      completed)

    

    The
      undersigned certifies that the Rights evidenced by this Right Certificate are
      not beneficially owned by, and were not acquired by the undersigned from, 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.

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