Document:

RESTATED AND AMENDED

STOCKHOLDER PROTECTION RIGHTS
AGREEMENT

dated as of February 11, 2013

between

RESEARCH FRONTIERS
INCORPORATED

and

CONTINENTAL STOCK TRANSFER & TRUST
COMPANY,

as Rights Agent 

TABLE OF CONTENTS

		     		Page
	 
	ARTICLE I
DEFINITIONS
	 
	1.1		Definitions	1
	 
	ARTICLE II
THE RIGHTS
	 
	2.1		Summary of Rights	7
	2.2		Legend on Common Stock Certificates	8
	2.3		Exercise of Rights; Separation of
      Rights	9
	2.4		Adjustments to Exercise Price; Number of Rights	11
	2.5		Date on Which Exercise is
      Effective	12
	2.6		Execution, Authentication, Delivery and Dating of Rights
      Certificates	12
	2.7		Registration, Registration of Transfer
      and Exchange	13
	2.8		Mutilated, Destroyed, Lost and Stolen Rights
      Certificates	14
	2.9		Persons Deemed Owners	14
	2.10		Delivery and Cancellation of Certificates	14
	2.11		Agreement of Rights Holders	15
	 
	ARTICLE III
ADJUSTMENTS TO THE RIGHTS IN
THE EVENT OF CERTAIN
      TRANSACTIONS
	 
	3.1		Flip in	16
	3.2		Flip over	19
	 
	ARTICLE IV
THE RIGHTS AGENT
	 
	4.1		General	19
	4.2		Merger or Consolidation or Change of Name of Rights
      Agent	20
	4.3		Duties of Rights Agent	21
	4.4		Change of Rights Agent	23
	 
	ARTICLE V
MISCELLANEOUS
	 
	5.1		Redemption	24
	5.2		Expiration	24
	5.3		Issuance of New Rights
      Certificates	24
	5.4		Supplements and Amendments	25
	5.5		Fractional Shares	25
	5.6		Rights of Action	25

i

	5.7	     	Holder of Rights Not Deemed a
      Stockholder	26
	5.8		Notice of Proposed Actions	26
	5.9		Notices	26
	5.10		Suspension of Exercisability or Exchangeability	27
	5.11		Costs of Enforcement	27
	5.12		Successors	27
	5.13		Benefits of this Agreement	27
	5.14		Determination and Actions by the Company, etc.	28
	5.15		Descriptive Headings; Section
      References	28
	5.16		GOVERNING LAW; EXCLUSIVE JURISDICTION	28
	5.17		Counterparts	29
	5.18		Severability	29
	5.19		Renewal Amendment	29
	5.20		USA PATRIOT Act	29

EXHIBITS

	Exhibit A	     	Form of Rights Certificate (Together with Form of
      Election to Exercise)

ii

RESTATED AND AMENDED STOCKHOLDER
PROTECTION RIGHTS AGREEMENT 

          RESTATED
AND AMENDED STOCKHOLDER PROTECTION RIGHTS AGREEMENT (as further amended from
time to time, this “Agreement”), dated as of February 11, 2013, between Research Frontiers
Incorporated, a Delaware corporation (the “Company”), and Continental Stock
Transfer & Trust Company, a New York banking corporation, as Rights Agent
(the “Rights Agent,” which term shall include any successor Rights Agent hereunder).

WITNESSETH: 

          WHEREAS,
on February 18, 2003, the Board of Directors of the Company (a) authorized the
adoption of the Rights Agreement, dated February 18, 2003, between the Company
and the Rights Agent (the “2003
Agreement”), (b) authorized and declared a
dividend of one right (“Right”) in respect of each share of Common Stock (as hereinafter
defined) held of record as of the Close of Business (as hereinafter defined) on
March 3, 2003 (the “Record Time”), and (c) authorized the issuance of one Right in respect of
each share of Common Stock issued after the Record Time and prior to the
Separation Time (as hereinafter defined); 

          WHEREAS,
pursuant to Section 26 of the 2003 Agreement, on February 11, 2013, the Board of
Directors of the Company authorized the adoption of this Agreement which
restates and amends the 2003 Agreement to (a) extend the Final Expiration Time
(as hereinafter defined), (b) decrease the Exercise Price (as hereinafter
defined), and (c) make certain other changes as set forth herein.

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

ARTICLE I
DEFINITIONS

          1.1 Definitions. For purposes of this Agreement, the following terms have the
meanings indicated: 

          “Acquiring Person” shall
mean any Person who is or becomes the Beneficial Owner of 15% or more of the
outstanding shares of Common Stock; provided, however, that the term “Acquiring
Person” shall not include any Person (i) who becomes the Beneficial Owner of 15%
or more of the outstanding shares of Common Stock but who (in the good faith
determination of the Board of Directors) acquired Beneficial Ownership of shares
of Common Stock without any plan or intention to obtain, change or influence the
control of the Company if such Person promptly divests, or promptly enters into
an agreement with, and satisfactory to, the Board of Directors, in the Board’s
sole discretion, to divest, and subsequently divests in accordance with the
terms of such agreement (without exercising or retaining any power, including,
but not limited to, voting power, with respect to such shares), sufficient
shares of Common Stock (or securities convertible into, exchangeable into or
exercisable for Common Stock or otherwise deemed to be Beneficially Owned by
such Person) so that such Person ceases to be the Beneficial Owner of 15% or
more of the outstanding shares of Common Stock; (ii) who becomes the Beneficial
Owner of 15% or more of the outstanding shares of Common Stock solely as a
result of a reduction in the number of shares of Common Stock outstanding due to
the repurchase of shares of Common Stock by the
Company (or any Subsidiary of the Company, any employee benefit plan of the
Company or of any Subsidiary of the Company, or any Person or entity organized,
appointed or established by the Company for or pursuant to the terms of any such
plan) unless and until such Person, after becoming aware that such Person has
become the Beneficial Owner of 15% or more of the then outstanding shares of
Common Stock, acquires Beneficial Ownership (other than by means of a stock
dividend or stock split) of additional shares of Common Stock representing 1% or
more of the shares of Common Stock then outstanding; or (iii) who Beneficially
Owns shares of Common Stock consisting solely of one or more of (A) shares of
Common Stock that are Beneficially Owned pursuant to the grant or exercise of an
option granted to such Person (an “Option
Holder”) by the Company in connection with an
agreement to merge with, or acquire, the Company entered into prior to a Flip-in
Date, (B) shares of Common Stock (or securities convertible into, exchangeable
into or exercisable for Common Stock or otherwise deemed to be Beneficially
Owned by such Person) Beneficially Owned by such Option Holder or its Affiliates
or Associates at the time of grant of such option, and (C) shares of Common
Stock (or securities convertible into, exchangeable into or exercisable for
Common Stock or otherwise deemed to be Beneficially Owned by such Person)
acquired by Affiliates or Associates of such Option Holder after the time of
such grant that, in the aggregate, amount to less than 1% of the outstanding
shares of Common Stock. Notwithstanding anything to the contrary in this
Agreement, the Company, any Subsidiary of the Company, and any employee stock
ownership or other employee benefit plan of the Company or a Subsidiary of the
Company (or any Person, entity or trustee holding shares of Common Stock for or
pursuant to the terms of any such plan or for the purpose of funding any such
plan or funding other employee benefits for employees of the Company or of any
Subsidiary of the Company) shall not be an Acquiring Person. 

          “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 such Rule is in effect
on the Date of this Agreement. 

          “Agreement” shall have the
meaning set forth in the Preamble. 

          “Applicable Expiration Date”
shall have the meaning set forth in Section
5.19. 

          A
Person shall be deemed the “Beneficial
Owner”, and to have “Beneficial Ownership” of, and to
“Beneficially Own”, any securities (i) as to which such Person or any of such Person’s
Affiliates or Associates is or may be deemed to be the beneficial owner,
directly or indirectly, pursuant to Rules 13d-3 and 13d-5 of the General Rules
and Regulations under the Exchange Act, as such Rules are in effect on the Date
of this Agreement; (ii) as to which such Person or any of such Person’s
Affiliates or Associates has the right to become the Beneficial Owner (whether
such right is exercisable immediately or only after the passage of time or the
occurrence of conditions), directly or indirectly, pursuant to any agreement,
arrangement or understanding, whether or not in writing (other than customary
agreements with and between underwriters and selling group members with respect
to a bona fide public offering of securities), or upon the exercise of
conversion rights, exchange rights, rights (other than the Rights), warrants or
options, or otherwise; (iii) which are Beneficially Owned, directly or
indirectly, by any other Person or any of such other Person’s Affiliates or
Associates with which such first Person or any of such first Person’s Affiliates
or Associates has any agreement, arrangement or understanding, whether or not in writing, (x) for the purpose of
acquiring, holding, voting (except pursuant to a revocable proxy as described in
clause (B) of the proviso to this sentence) or disposing of any voting
securities of the Company, or (y) to cooperate in obtaining, changing or
influencing the control of the Company; and (iv) that such Person or any of such
Person’s Affiliates or Associates are determined to Constructively Own;
provided,
however,
that a Person shall not be deemed the “Beneficial Owner,” or to have “Beneficial
Ownership” of, or to “Beneficially Own,” any security (A) solely because such
security has been tendered pursuant to a tender or exchange offer made by such
Person or any of such Person’s Affiliates or Associates until such tendered
security is accepted for payment or exchange, or (B) solely because such Person
or any of such Person’s Affiliates or Associates has or shares the power to vote
or direct the voting of such security pursuant to a revocable proxy or consent
given in response to a public proxy or consent solicitation made to more than
ten holders of shares of a class of stock of the Company registered under
Section 12 of the Exchange Act and pursuant to, and in accordance with, the
applicable provisions of the General Rules and Regulations under the Exchange
Act, except if such power (or the arrangements relating thereto (whether or not
in writing)) is then reportable under Item 6 of Schedule 13D under the Exchange
Act (or any similar provision of a comparable or successor statement).
Notwithstanding the foregoing, no officer or director of the Company shall be
deemed to Beneficially Own any securities of any other Person solely by virtue
of any actions that such officer or director takes in such capacity. For
purposes of this Agreement, in determining the percentage of the outstanding
shares of Common Stock with respect to which a Person is the Beneficial Owner,
all shares as to which such Person is deemed the Beneficial Owner shall be
deemed to be outstanding. 

2

          “Board
of Directors” shall mean the Board of Directors of the Company. 

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

          “Close of Business” on any
given date shall mean 5:00 p.m. New York City time on such date or, if such date
is not a Business Day, 5:00 p.m. New York City time on the next succeeding
Business Day. 

          “Common Stock” shall mean
the shares of common stock, par value $0.0001 per share, of the
Company.

          “Company” shall have the
meaning set forth in the Preamble. 

          A
Person shall be deemed to “Constructively
Own” shares of Common Stock in respect of
which such Person has a Synthetic Long Position, calculated in the manner set
forth below. The number of shares of Common Stock in respect of a Synthetic Long
Position that shall be deemed to be Constructively Owned is the notional or
other number of shares of Common Stock in respect of such Synthetic Long
Position that is specified in a filing by such Person or any of such Person’s
Affiliates or Associates with the SEC or in the documentation evidencing such
Synthetic Long Position as the basis upon which the value or settlement amount
of such right or derivative, or the opportunity of the holder of such right or
derivative to profit or share in any profit, is to be calculated in whole or in
part, and in any case (or if no such number of shares of Common Stock is
specified in any filing or documentation), as determined by the Board of
Directors in good faith to be the number of shares of Common Stock to which such
Synthetic Long Position relates.

3

          “Date of this Agreement”
shall mean February 11, 2013. 

          “Election to Exercise” shall
have the meaning set forth in Section
2.3(d).

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

          “Exchange Ratio” shall have
the meaning set forth in Section
3.1(c). 

          “Exchange Time” shall mean
the time at which the right to exercise the Rights shall terminate pursuant to
Section 3.1(c). 

          “Exercise Price” shall mean,
as of any date, the price at which a holder may purchase the securities issuable
upon exercise of one whole Right. Until adjustment thereof in accordance with
the terms hereof, the Exercise Price shall equal $40. 

          “Expansion Factor” shall
have the meaning set forth in Section
2.4(a). 

          “Expiration Time” shall mean
the earliest of (i) the Exchange Time, (ii) the Redemption Time, (iii) the Final
Expiration Time, unless, for purposes of this clause (iii), extended by action of
the Board of Directors in accordance with Section 5.19 (in which case the
applicable time shall be the time to which it has been so extended), and (iv)
immediately prior to the effective time of a consolidation, merger or statutory
share exchange that does not constitute a Flip-over Transaction or Event.

          “Final Expiration Time”
shall mean the Close of Business on February 11, 2023. 

          “Flip-in Date” shall mean
any Stock Acquisition Date or such later date and time as the Board of Directors
may from time to time fix by resolution adopted prior to the Flip-in Date that
would otherwise have occurred. 

          “Flip-over Entity,” for
purposes of Section 3.2, shall mean (i) in the case of a Flip-over Transaction or
Event described in clause (i) of the definition thereof, the Person issuing any securities
into which shares of Common Stock are being converted or exchanged and, if no
such securities are being issued, the other Person that is a party to such
Flip-over Transaction or Event, and (ii) in the case of a Flip-over Transaction
or Event referred to in clause (ii) of the definition thereof, the Person
receiving the greatest portion of the (A) assets or, if (A) is not readily
determinable, (B) operating income or cash flow being transferred in such
Flip-over Transaction or Event; provided, in all cases, that if such
Person is a Subsidiary of another Person, the ultimate parent entity of such
Person shall be the Flip-over Entity. 

          “Flip-over Stock” shall mean
the capital stock (or similar equity interest) with the greatest voting power in
respect of the election of directors (or other Persons similarly responsible for
the direction of the business and affairs) of the Flip-over Entity. 

4

          “Flip-over Transaction or Event” shall mean a transaction or series of transactions, on or after a
Flip-in Date, in which, directly or indirectly, (i) the Company shall
consolidate or merge or participate in a statutory share exchange with any other
Person if, at the time of consummation of the consolidation, merger or statutory
share exchange or at the time the Company enters into any agreement with respect
to any such consolidation, merger or statutory share exchange, the Acquiring
Person is the Beneficial Owner of 90% or more of the outstanding shares of
Common Stock or controls the Board of Directors and either (A) any term of or
arrangement concerning the treatment of shares of capital stock in such
consolidation, merger or statutory share exchange relating to the Acquiring
Person is not identical to the terms and arrangements relating to other holders
of the Common Stock, or (B) the Person with whom the transaction or series of
transactions occurs is the Acquiring Person or an Affiliate or Associate of the
Acquiring Person; or (ii) the Company shall sell or otherwise transfer (or one
or more of its Subsidiaries shall sell or otherwise transfer) assets (A)
aggregating more than 50% of the assets (measured by either book value or fair
market value) or (B) generating more than 50% of the operating income or cash
flow, in each case of the Company and its Subsidiaries (taken as a whole) to any
Person (other than the Company or one or more of its wholly owned Subsidiaries)
or to two or more such Persons that are Affiliates or Associates or are
otherwise acting in concert, if, at the time of the entry by the Company (or any
such Subsidiary) into an agreement with respect to such sale or transfer of
assets, the Acquiring Person is the Beneficial Owner of 90% of more of the
outstanding shares of Common Stock or controls the Board of Directors of the
Company. For purposes of the foregoing definition, the term “Acquiring Person”
shall include any Acquiring Person and its Affiliates and Associates, counted
together as a single Person. An Acquiring Person shall be deemed to control the
Board of Directors when, on or following a Stock Acquisition Date, a majority of
the members of the Board of Directors do not consist of (i) persons who were
members of the Board of Directors on the Stock Acquisition Date, other than any
person who was or is an Acquiring Person, an Affiliate or Associate of an
Acquiring Person or a representative or nominee of an Acquiring Person, and (ii)
persons, the nomination for election or election to the Board of Directors of
whom is recommended or approved by a majority of the members of the Board of
Directors satisfying either clause
(i) above or this clause (ii). 

          “Market Price” per share of
any securities on any date shall mean the average of the daily closing prices
per share of such securities (determined as described below) on each of the 20
consecutive Trading Days through and including the Trading Day immediately
preceding, but not including, such date; provided, however, that if any event described
in Section 2.4, or any analogous event, shall have caused the closing prices used to
determine the Market Price on any Trading Days during such period of 20 Trading
Days not to be fully comparable with the closing price on such date, each such
closing price so used shall be appropriately adjusted by the Board of Directors
in order to make it fully comparable with the closing price on such date. The
closing price per share of any securities on any date shall be the last reported
sale price, regular way, or, in case no such sale takes place or is quoted on
such date, the average of the closing bid and asked prices, regular way, for
each share of such securities, in either case, as reported in the principal
consolidated transaction reporting system with respect to securities listed on
the principal national securities exchange on which the securities are listed or
admitted to trading or, if the securities are not listed or admitted to trading
on any national securities exchange, as reported by NASDAQ or such other
quotation system then in use, or, if on any such date the securities are not
listed or admitted to trading on any national securities exchange or quoted by
any such quotation system, the average of the
closing bid and asked prices as furnished by a professional market maker making
a market in the securities selected by the Board of Directors; provided, however, that if on any
such date the securities are not listed or admitted to trading on a national
securities exchange or traded in the over-the-counter market, the closing price
per share of such securities on such date shall mean the fair value per share of
such securities on such date as determined in good faith by the Board of
Directors, after consultation with a nationally recognized investment banking
firm, and set forth in a certificate delivered to the Rights Agent, which
determination shall be binding on the Rights Agent, the holders of Rights and
all other Persons. 

5

          “NASDAQ” shall mean the
National Association of Securities Dealers, Inc. Automated Quotation System.

          “Option Holder” shall have
the meaning set forth in the definition of Acquiring Person. 

          “Person” shall mean any
individual, firm, partnership, limited liability partnership, limited liability
company, business trust, trust, association, syndicate, group (as such term is
used in Rule 13d-5 of the General Rules and Regulations under the Exchange Act,
as such Rule is in effect on the Date of this Agreement), corporation or other
entity, including, in each case, any successor thereof and any unincorporated
group of persons who, by formal or informal agreement or arrangement, have
embarked on a common purpose or act. 

          “Record Time” shall have the
meaning set forth in the Recitals. 

          “Redemption Price” shall
mean an amount equal to $0.0001. 

          “Redemption Time” shall mean
the time at which the right to exercise the Rights shall terminate pursuant to
Section 5.1. 

          “Right” shall have the
meaning set forth in the Recitals. 

          “Rights Agent” shall have
the meaning set forth in the Preamble.

          “Rights Certificate” shall
have the meaning set forth in Section
2.3(c).

          “Rights Register” shall have
the meaning set forth in Section
2.7(a).

          “SEC” shall mean the
Securities and Exchange Commission. 

          “Separation Time” shall mean
the earlier of the Close of Business on the tenth Business Day (or such later
date as the Board of Directors may from time to time fix by resolution adopted
prior to the Separation Time that otherwise would have occurred) following but
not including (i) the date on which any Person commences a tender or exchange
offer that, if consummated, would result in such Person’s becoming an Acquiring
Person, and (ii) the date of the first event causing a Flip-in Date to occur;
provided that if any tender or exchange offer referred to in clause (i) of this
paragraph is cancelled, terminated or otherwise withdrawn prior to the
Separation Time without the purchase of any shares of Common Stock pursuant
thereto, such offer shall be deemed, for purposes of this paragraph, never to
have been made.

6 

          “Stock Acquisition Date”
shall mean the earlier of (i) the first date on which there shall be a public
announcement by the Company (by any means) that a Person has become an Acquiring
Person or (ii) the date on which any Acquiring Person becomes the Beneficial
Owner of more than 50% of the outstanding shares of Common Stock. 

          “Subsidiary” of any
specified Person shall mean any corporation or other entity of which a majority
of the voting power of the equity securities or a majority of the equity or
ownership interests are Beneficially Owned, directly or indirectly, by such
Person. 

          “Synthetic Long Position”
shall mean any option, warrant, convertible security, stock appreciation right,
swap agreement or other security, contract right or derivative position, whether
or not presently exercisable, that has an exercise or conversion privilege or a
settlement payment or mechanism at a price related to the value of Common Stock
or a value determined in whole or part with reference to, or derived in whole or
in part from, the value of Common Stock and that increases in value as the value
of Common Stock increases or that provides to the holder an opportunity,
directly or indirectly, to profit or share in any profit derived from any
increase in the value of Common Stock, in any case without regard to whether (i)
such derivative conveys any voting rights in such securities to such Person or
any of such Person’s Affiliates or Associates, (ii) such derivative is required
to be, or capable of being, settled through delivery of such securities, or
(iii) such Person or any of such Person’s Affiliates or Associates may have
entered into other transactions that hedge the economic effect of such
derivative. A Synthetic Long Position shall not include any interests, rights,
options or other securities set forth in Rule 16a-1(c)(1)-(5) or (7) of the
General Rules and Regulations under the Exchange Act. 

          “Trading Day,” when used
with respect to any securities, shall mean a day on which the principal national
securities exchange on which such securities are listed or admitted to trading
is open for the transaction of business or, if such securities are not listed or
admitted to trading on any national securities exchange, a Business Day.

          “Trading Regulation” shall
have the meaning set forth in Section
2.3(c).

          “Trust” shall have the
meaning set forth in Section
3.1(c).

          “Trust Agreement” shall have
the meaning set forth in Section
3.1(c).

          “2003 Agreement” shall have
the meaning set forth in the Recitals. 

ARTICLE II
THE RIGHTS

          2.1 Summary of
Rights. The Company will make a summary of
the terms of the Rights available to any holder of Rights who may so request
from time to time prior to the Expiration Time. 

7

          2.2 Legend on Common Stock
Certificates. Certificates for the Common
Stock issued (whether originally issued or from the Company’s treasury) on or
after the Record Time but prior to the Separation Time shall evidence one Right
for each share of Common Stock represented thereby. Certificates for the Common
Stock issued (whether originally issued or from the Company’s treasury) on or
after the Record Time but prior to the Date of this Agreement shall have
impressed on, printed on, written on or otherwise affixed to them substantially
the legend specified in Section 3(c) of the 2003 Agreement. Certificates for the
Common Stock issued (whether originally issued or from the Company’s treasury)
on or after the Date of this Agreement but prior to the Separation Time shall
have impressed on, printed on, written on or otherwise affixed to them
substantially the following legend: 

Until the Separation Time (as defined in the Rights Agreement
referred to below), this certificate also evidences and entitles the holder
hereof to certain Rights as set forth in the Restated and Amended Stockholder
Protection Rights Agreement, dated as of February 11, 2013 (as such may be
further amended from time to time, the “Rights Agreement”), between Research
Frontiers Incorporated (the “Company”) and Continental Stock Transfer &
Trust Company, as Rights Agent, 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 may be redeemed, may become exercisable for securities or
assets of the Company or securities of another entity, may be exchanged for
shares of Common Stock or other securities or assets of the Company, may expire,
may become null and void (including, if they are “Beneficially Owned” by an
“Acquiring Person” or an “Affiliate” or “Associate” thereof (as such terms are
defined in the Rights Agreement, or by any transferee of any of the foregoing))
or may be evidenced by separate certificates and may no longer be evidenced by
this certificate. The Company will mail or arrange for the mailing of a copy of
the Rights Agreement to the holder of this certificate without charge after the
receipt of a written request therefor. 

Certificates representing shares of
Common Stock that were issued and outstanding at the Record Time shall evidence
one Right for each share of Common Stock evidenced thereby notwithstanding the
foregoing legends. Notwithstanding the foregoing, neither the omission of a
legend nor the inclusion of a legend that makes reference to a rights agreement
other than the Agreement shall affect the enforceability of any part of this
Agreement or the rights of any holder of Rights. 

          If the
Common Stock issued after the Record Time but prior to the Separation Time shall
be uncertificated, the registration of such Common Stock on the stock transfer
books of the Company shall evidence one Right for each share of Common Stock
represented thereby. The Company shall mail or arrange for the mailing of a copy
of this Agreement to any Person that holds Common Stock, as evidenced by the
registration of the Common Stock in the name of such Person on the stock
transfer books of the Company, without charge after the receipt of a written
request therefor, and the Company shall cause the transfer agent for the Common
Stock to include on each direct registration account statement with respect to
the Common Stock issued prior to the Separation Time an appropriate notation to
the reflect the issuance of the Rights.

8

          2.3 Exercise of Rights;
Separation of Rights. (a) Subject to
Sections 3.1, 5.1 and 5.10 and subject to adjustment as herein set forth, each Right will entitle
the holder thereof, at or after the Separation Time and prior to the Expiration
Time, to purchase, for the Exercise Price, one share of Common Stock.

          (b) Until the Separation Time, (i)
no Right may be exercised and (ii) each Right will be evidenced by the
certificate for the associated share of Common Stock (or, if the Common Stock
shall be uncertificated, by the registration of the associated Common Stock on
the stock transfer books of the Company and the confirmation thereof provided
for in Section 2.2), and will be transferable only together with, and will be transferred
by a transfer (whether with or without such letter or confirmation) of, such
associated share. 

          (c) Subject to the terms and
conditions hereof, at or after the Separation Time and prior to the Expiration
Time, the Rights (i) may be exercised pursuant to Section 2.3(d) below and (ii) may be
transferred independent of shares of Common Stock. Promptly following the
Separation Time (provided that the Board of Directors has not elected to
exchange all of the then outstanding Rights pursuant to Section 3.1(c)), then the
Rights Agent or the transfer agent for the Common Stock, if requested by the
Company and provided with the necessary information, will mail to each holder of
record of Common Stock as of the Separation Time (other than any Person whose
Rights have become null and void pursuant to Section 3.1(b)), at such holder’s
address as shown by the records of the Company (and the Company hereby agrees to
furnish copies of such records to the Rights Agent for this purpose), (x) a
certificate (a “Rights Certificate”) in substantially the form of Exhibit A hereto appropriately
completed, representing the number of Rights held by such holder at the
Separation Time and having 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
and as do not affect the rights, liabilities, responsibilities or duties of the
Rights Agent, or as may be required to comply with any law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any national
securities exchange or quotation system on which the Common Stock or the Rights
may from time to time be listed or traded (“Trading Regulation”), or to conform to usage, and (y) a disclosure statement
describing the Rights; provided, however, that the Company shall have
no obligation to distribute Rights Certificates to any Acquiring Person or
Affiliate or Associate of an Acquiring Person or any transferee of any of the
foregoing. Receipt of a Rights Certificate by any Person shall not preclude a
later determination that such Rights are null and void pursuant to
Section 3.1(b). To the extent applicable, the Company may implement such procedures as
it deems appropriate, in its sole discretion, to minimize the possibility that
Rights are received by Persons with respect to whom Rights would be null and
void under Section 3.1(b). 

          (d) Subject to the terms and
conditions hereof, Rights may be exercised on any Business Day at or after the
Separation Time and prior to the Expiration Time by submitting to the Rights
Agent the Rights Certificate evidencing such Rights with an Election to Exercise
(an “Election
to Exercise”) substantially in the form
attached to the Rights Certificate duly executed and properly completed,
accompanied by payment  by certified or official bank check payable to the order of the Company, of a sum equal to the Exercise Price
multiplied by the number of Rights being exercised and a sum sufficient to cover
any tax or charge that may be payable in respect of any transfer involved in the
transfer or delivery of Rights Certificates or the issuance or delivery of
certificates (or, if uncertificated, the registration on the stock transfer
books of the Company) for shares or depositary receipts (or both) in a name
other than that of the holder of the Rights being exercised. 

9

          (e) Upon receipt of a Rights
Certificate, with a duly executed and properly completed Election to Exercise
accompanied by payment as set forth in Section
2.3(d), and subject to the terms and
conditions hereof, the Rights Agent will thereupon promptly (i)(A) requisition
from the transfer agent for the Common Stock certificates evidencing such number
of shares or other securities to be purchased or, in the case of uncertificated
shares or other securities, requisition from the transfer agent a notice setting
forth such number of shares or other securities to be purchased for which
registration will be made on the stock transfer books of the Company (the
Company hereby irrevocably authorizing the transfer agent to comply with all
such requisitions), and (B) if the Company elects pursuant to Section 5.5 not to issue
certificates (or effect registrations on the stock transfer books of the
Company) representing fractional shares, requisition from the depositary
selected by the Company depositary receipts representing the fractional shares
to be purchased (the Company hereby irrevocably authorizes each depositary to
comply with all such requisitions) or, requisition from the Company the amount of monies to be paid in lieu of
fractional shares in accordance with Section
5.5; (ii) after receipt of such
certificates, depositary receipts and/or notices, cause the same to be delivered
to or upon the order of the registered holder of such Rights Certificate,
registered in such name or names as may be designated by such holder; and (iii)
when necessary to comply with this Agreement, after receipt, promptly deliver
such monies to or upon the order of the registered holder of such Rights
Certificate. 

          (f) In case the holder of any
Rights shall exercise less than all of the Rights evidenced by such holder’s
Rights Certificate, a new Rights Certificate evidencing the Rights remaining
unexercised will be issued by the Rights Agent to such holder or to such
holder’s duly authorized assigns. 

          (g) The Company covenants and
agrees that it will (i) take all such action as may be necessary to ensure that
all shares delivered (or evidenced by registration on the stock transfer books
of the Company) upon exercise of Rights shall, at the time of delivery (or
registration) of such shares (subject to payment of the Exercise Price), be duly
and validly authorized, executed, issued and delivered (or registered) and fully
paid and nonassessable; (ii) take all such action as may be necessary to comply
with any applicable requirements of the Securities Act of 1933, as amended, or
the Exchange Act, and the rules and regulations thereunder, and any other
applicable law, rule or regulation, in connection with the issuance of any
shares upon exercise of Rights; and (iii) pay when due and payable any and all
taxes and charges that may be payable in respect of the original issuance or
delivery of the Rights Certificates or of any shares issued upon the exercise of
Rights; provided that the Company shall not be required to pay any tax or charge that may
be payable in respect of any transfer involved in the transfer or delivery of
Rights Certificates or the issuance or delivery (or registration) of shares in a
name other than that of the holder of the Rights being transferred or
exercised.

10

          (h) 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 the exercise or assignment
of a Rights Certificate unless the registered holder of such Rights Certificate
shall have (i) duly executed and properly completed the certificate following
the Form of Assignment or the Form of Election to Exercise, as applicable, set
forth on the reverse side of the Rights Certificate surrendered for such
exercise or assignment; (ii) provided such additional evidence of the identity
of the Beneficial Owner (or former Beneficial Owner) thereof and of the Rights
evidenced thereby, and the Affiliates and Associates of such Beneficial Owner or
former Beneficial Owner, as the Company or the Rights Agent may reasonably
request; and (iii) paid a sum sufficient to cover any tax or charge that may be
imposed in connection with any transfer, split up, combination or exchange of
Right Certificates as required under Section
2.3(d). 

          2.4 Adjustments to Exercise
Price; Number of Rights. (a) In the event
that the Company shall at any time after the Record Time and prior to the
Separation Time (i) declare or pay a dividend on the Common Stock payable in
Common Stock, (ii) subdivide the outstanding Common Stock or (iii) combine the
outstanding Common Stock into a smaller number of shares of Common Stock, (x)
the Exercise Price in effect after such adjustment will be equal to the Exercise
Price in effect immediately prior to such adjustment divided by the number of
shares of Common Stock, including any fractional shares in lieu of which such
holder received payment by check (the “Expansion
Factor”), that a holder of one share of
Common Stock immediately prior to such dividend, subdivision or combination
would hold thereafter as a result thereof, and (y) each Right held prior to such
adjustment will become that number of Rights equal to the Expansion Factor, and
the adjusted number of Rights will be deemed to be distributed among the shares
of Common Stock with respect to which the original Rights were associated (if
they remain outstanding) and the shares issued in respect of such dividend,
subdivision or combination, so that each such share of Common Stock will have
exactly one Right associated with it. Each adjustment made pursuant to this
paragraph shall be made as of the payment or effective date for the applicable
dividend, subdivision or combination. 

          In the
event that the Company shall at any time after the Record Time and prior to the
Separation Time issue any shares of Common Stock otherwise than in a transaction
referred to in the preceding paragraph, each such share of Common Stock so
issued shall automatically have one new Right associated with it, which Right
shall be evidenced by the certificate representing such share (or, if the Common
Stock shall be uncertificated, such Right shall be evidenced by the registration
of such Common Stock on the stock transfer books of the Company and the
confirmation thereof provided for in Section
2.2). Rights shall be issued by the Company
in respect of shares of Common Stock that are issued or sold by the Company
after the Separation Time only to the extent provided in Section 5.3. 

          (b) In the event that the Company
shall at any time after the Record Time and prior to the Separation Time issue
or distribute any securities or assets in respect of, in lieu of or in exchange
for the Common Stock (other than pursuant to any non-extraordinary periodic cash
dividend or a dividend paid solely in Common Stock), whether by dividend, in a
reclassification or recapitalization (including, but not limited to, any such
transaction involving a merger, consolidation or statutory share exchange), or
otherwise, the Company shall make such adjustments, if any, in the Exercise
Price, number of Rights and/or securities or other property purchasable upon
exercise of Rights as the Board of Directors, in its sole discretion, may deem
to be appropriate under the circumstances in order to adequately protect the
interests of the holders of Rights generally, and the Company and the Rights
Agent shall amend this Agreement as necessary to provide for such
adjustments.

11

          (c) Each adjustment to the
Exercise Price made pursuant to this Section
2.4 shall be calculated to the nearest cent.
Whenever an adjustment to the Exercise Price is made pursuant to this
Section 2.4, the Company shall (i) promptly prepare a certificate setting forth such
adjustment and a brief statement of the facts accounting for such adjustment,
and (ii) promptly file with the Rights Agent and with the transfer agent for the
Common Stock a copy of such certificate. The Rights Agent shall be fully
protected in relying on any such certificate and on any adjustment or statement
therein contained and shall have no duty or liability with respect to, and shall
not be deemed to have knowledge of, any adjustment or any such event unless and
until it shall have received such a certificate. 

          (d) Rights Certificates shall
represent the right to purchase the securities purchasable under the terms of
this Agreement, including any adjustment or change in the securities purchasable
upon exercise of the Rights, even though such certificates may continue to
express the securities purchasable at the time of issuance of the initial Rights
Certificates. 

          2.5 Date on Which Exercise is
Effective. Each Person in whose name any
certificate for shares is issued (or registration on the stock transfer books is
effected) upon the exercise of Rights shall for all purposes be deemed to have
become the holder of record of the shares represented thereby on the date upon
which the Rights Certificate evidencing such Rights was duly surrendered and
payment of the Exercise Price for such Rights (and any applicable taxes and
other governmental charges payable by the exercising holder hereunder) was made;
provided,
however,
that if the date of such surrender and payment is a date upon which the stock
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
registration) shall be dated, the next succeeding Business Day on which the
stock transfer books of the Company are open. 

          2.6 Execution, Authentication,
Delivery and Dating of Rights Certificates.
(a) The Rights Certificates shall be executed on behalf of the Company by its
Chief Executive Officer or one of its Executive Vice Presidents and by its
Secretary or one of its Assistant Secretaries. The signature of any of these
officers on the Rights Certificates may be manual or facsimile. 

          Rights
Certificates bearing the manual or facsimile signatures of individuals who were
at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the countersignature and delivery of such Rights Certificates.

          Promptly
after the Separation Time, the Company will notify in writing the Rights Agent
of such Separation Time (and if such notification is given orally, the Company
shall confirm same in writing on or prior to the Business Day next following)
and will deliver Rights Certificates executed by
the Company to the Rights Agent for countersignature, and, subject to
Section 3.1(b), the Rights Agent shall countersign (either manually or by facsimile)
and deliver such Rights Certificates to the holders of the Rights pursuant to
Section 2.3(c). Until the written notice provided for in this Section 2.6 is received by
the Rights Agent, the Rights Agent may presume conclusively for all purposes
that the Separation Time has not occurred. No Rights Certificate shall be valid
for any purpose unless countersigned (either manually or by facsimile) by the
Rights Agent. 

12

          (b) Each Rights Certificate shall
be dated the date of countersignature thereof. 

          2.7 Registration, Registration
of Transfer and Exchange. (a) After the
Separation Time, the Company will cause to be kept a register (the
“Rights Register”) in which, subject to such reasonable regulations as it may prescribe,
the Company will provide for the registration and transfer of Rights. The Rights
Agent is hereby appointed “Rights Registrar” for the purpose of maintaining the
Rights Register for the Company and registering Rights and transfers of Rights
after the Separation Time as herein provided. In the event that the Rights Agent
shall cease to be the Rights Registrar, the Rights Agent will have the right to
examine the Rights Register at all reasonable times after the Separation Time.
The Rights Certificates are transferable only on the Rights Register maintained
by the Rights Registrar. 

          After
the Separation Time and prior to the Expiration Time, upon surrender for
registration of transfer or exchange of any Rights Certificate, and subject to
the provisions of Sections
2.7(c) and (d), the Company will execute, and the
Rights Agent will countersign and, if requested and provided with all necessary
information, deliver, in the name of the holder or the designated transferee or
transferees, as required pursuant to the holder’s instructions, one or more new
Rights Certificates evidencing the same aggregate number of Rights as did the
Rights Certificate so surrendered. 

          (b) Except as otherwise provided
in Section 3.1(b), all Rights issued upon any registration of transfer or exchange of
Rights Certificates shall be the valid obligations of the Company, and such
Rights shall be entitled to the same benefits under this Agreement as the Rights
surrendered upon such registration of transfer or exchange. 

          (c) Every Rights Certificate
surrendered for registration of transfer or exchange shall be duly endorsed, or
be accompanied by a written instrument of transfer in form satisfactory to the
Company or the Rights Agent, as the case may be, duly executed by the holder
thereof or such holder’s attorney-in-fact duly authorized in writing. As a
condition to the issuance of any new Rights Certificate under this
Section 2.7, the Company may require the payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto. The
Rights Agent shall have no duty or obligation under any section of this
Agreement that requires the payment of taxes or charges unless and until it is
satisfied that all such taxes and/or charges have been paid. 

          (d) The Company shall not register
the transfer or exchange of any Rights that have become null and void under
Section 3.1(b), been exchanged under Section
3.1(c) or been redeemed under Section 5.1. 

13

          2.8 Mutilated, Destroyed, Lost
and Stolen Rights Certificates. (a) If any
mutilated Rights Certificate is surrendered to the Rights Agent prior to the
Expiration Time, then, subject to Sections
3.1(b), 3.1(c) and 5.1, the Company shall execute and the
Rights Agent shall countersign and deliver in exchange therefor a new Rights
Certificate evidencing the same number of Rights as did the Rights Certificate
so surrendered. 

          (b) If there shall be delivered to
the Company and the Rights Agent prior to the Expiration Time (i) evidence to
their satisfaction of the destruction, loss or theft of any Rights Certificate,
and (ii) such security or indemnity as may be required by them to hold each of
them and any of their agents harmless, then, subject to Sections 3.1(b),
3.1(c) and
5.1 and in
the absence of written notice to the Company or the Rights Agent that such
Rights Certificate has been acquired by a bona fide purchaser, the Company shall
execute and upon its written request the Rights Agent shall countersign and, if
requested and provided with all necessary information, deliver, in lieu of any
such destroyed, lost or stolen Rights Certificate, a new Rights Certificate
evidencing the same number of Rights as did the Rights Certificate so destroyed,
lost or stolen. 

          (c) As a condition to the issuance
of any new Rights Certificate under this Section 2.8, the Company may require
the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other expenses (including the
fees and expenses of the Rights Agent) connected therewith. 

          (d) Every new Rights Certificate
issued pursuant to this Section
2.8 in lieu of any destroyed, lost or stolen
Rights Certificate shall evidence an original additional contractual obligation
of the Company, whether or not the destroyed, lost or stolen Rights Certificate
shall be at any time enforceable by anyone, and, subject to Section 3.1(b) shall be
entitled to all the benefits of this Agreement equally and proportionately with
any and all other Rights duly issued hereunder. 

          2.9 Persons Deemed
Owners. Prior to due presentment of a Rights
Certificate (or, prior to the Separation Time, the associated Common Stock
certificate or notice of transfer, if uncertificated) for registration of
transfer, the Company, the Rights Agent and any agent of the Company or the
Rights Agent may deem and treat the Person in whose name such Rights Certificate
(or, prior to the Separation Time, such Common Stock certificate or Common Stock
registration, if uncertificated) is registered as the absolute owner thereof and
of the Rights evidenced thereby for all purposes whatsoever, including the
payment of the Redemption Price, and neither the Company nor the Rights Agent
shall be affected by any notice to the contrary. As used in this Agreement,
unless the context otherwise requires, the term “holder” of any Rights shall
mean the registered holder of such Rights (or, prior to the Separation Time, the
associated shares of Common Stock). 

          2.10 Delivery and Cancellation
of Certificates. All Rights Certificates
surrendered upon exercise or for registration of transfer or exchange shall, if
surrendered to any Person other than the Rights Agent, be delivered to the
Rights Agent and, in any case, shall be promptly cancelled by the Rights Agent.
The Company may at any time deliver to the Rights Agent for cancellation any
Rights Certificates previously countersigned and delivered hereunder that the
Company may have acquired in any manner whatsoever, and all Rights Certificates
so delivered shall be promptly cancelled by the Rights Agent. No Rights
Certificates shall be countersigned in lieu of or
in exchange for any Rights Certificates cancelled as provided in this
Section 2.10, except as expressly permitted by this Agreement. The Rights Agent shall
destroy all cancelled Rights Certificates and deliver to the Company a
certificate attesting to such destruction. 

14

          2.11 Agreement of Rights
Holders. Every holder of Rights by accepting
the Rights consents and agrees with the Company and the Rights Agent and with
every other holder of Rights that: 

          (a) prior to the Separation Time,
each Right will be transferable only together with, and will be transferred by a
transfer of, the associated share of Common Stock; 

          (b) as of and after the Separation
Time, the Rights Certificates will be transferable only on the Rights Register
as provided herein; 

          (c) prior to due presentment of a
Rights Certificate (or, prior to the Separation Time, the associated Common
Stock certificate or Common Stock registration, if uncertificated) for
registration of transfer, the Company, the Rights Agent and any agent of the
Company or the Rights Agent may deem and treat the Person in whose name the
Rights Certificate (or, prior to the Separation Time, the associated Common
Stock certificate or Common Stock registration, if uncertificated) is registered
as the absolute owner thereof and of the Rights evidenced thereby for all
purposes whatsoever, and neither the Company nor the Rights Agent shall be
affected by any notice to the contrary; 

          (d) Rights that are Beneficially
Owned by certain Persons will, under the circumstances set forth in
Section 3.1(b), become null and void; 

          (e) this Agreement may be
supplemented or amended from time to time in accordance with its terms;

          (f) the Board of Directors shall
have the exclusive power and authority delegated to it pursuant to
Section 5.14; and 

          (g) 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,
that the Company shall use its reasonable best efforts to have any such order,
decree or ruling lifted or otherwise overturned as soon as possible. 

15

ARTICLE III
ADJUSTMENTS TO THE RIGHTS IN
THE EVENT OF CERTAIN TRANSACTIONS

          3.1 Flip-in. (a) In the event that prior to the Expiration Time a Flip-in
Date shall occur, except as otherwise provided in this Section 3.1, each Right
shall constitute the right to purchase from the Company, upon exercise thereof
in accordance with the terms hereof (but subject to Section 5.10), that number of shares
of Common Stock having an aggregate Market Price on the Stock Acquisition Date
that gave rise to the Flip-in Date equal to twice the Exercise Price for a purchase price, payable as set forth in Section 2.3(c) equal to the Exercise Price (such right to be appropriately
adjusted in order to protect the interests of the holders of Rights generally in
the event that on or after such Stock Acquisition Date any of the events
described in Section 2.4(a) or (b), or any analogous event, shall have occurred with respect to
the Common Stock). The foregoing notwithstanding, Rights shall not be
exercisable pursuant to this Section
3.1 unless and until the Separation Time
shall have occurred. 

          (b) Notwithstanding the foregoing,
any Rights that are or were Beneficially Owned on or after the Stock Acquisition
Date by (i) an Acquiring Person or an Affiliate or Associate thereof, (ii) a
transferee of an Acquiring Person or an Affiliate or Associate thereof who
becomes a transferee after the Acquiring Person becomes such, or (iii) a
transferee of an Acquiring Person or an Affiliate or Associate thereof who
becomes a transferee prior to or concurrently with the Acquiring Person becoming
such and receives such Rights pursuant to either (A) a transfer (whether or not
for consideration) from the Acquiring Person to holders of equity interests in
such Acquiring Person or to any Person with whom the Acquiring Person has any
continuing agreement, arrangement or understanding, whether or not in writing,
regarding the transferred Rights, or (B) a transfer which the Board of Directors
has determined is part of a plan, arrangement or understanding which has as a
primary purpose or effect the avoidance of this Section 3.1(b), shall become null and
void and any holder of such Rights (including transferees, whether direct or
indirect, of any such Persons) shall thereafter have no right to exercise or
transfer such Rights under any provision of this Agreement. If any Rights
Certificate is presented for assignment or exercise and the Person presenting
the same will not complete the certification set forth at the end of the Form of
Assignment or Form of Notice of Election to Exercise or, if requested, will not
provide such additional evidence, including, but not limited to, the identity of
the Beneficial Owners and their Affiliates and Associates (or former Beneficial
Owners and their Affiliates and Associates) as the Company shall reasonably
request in order to determine if such Rights are null and void, then the Company
shall be entitled conclusively to deem the Rights to be Beneficially Owned by an
Acquiring Person or an Affiliate or Associate thereof or a transferee of any of
the foregoing and accordingly will deem the Rights evidenced thereby to be null
and void and not transferable, exercisable or exchangeable. The Company shall
use all reasonable efforts to insure that the provisions of this Section 3.1(b) are complied
with, but shall have no liability to any holder of Rights or any other Person as
a result of its failure to make any determinations with respect to an Acquiring
Person or any of its Affiliates, Associates or their respective transferees
hereunder. 

          (c) The Board of Directors may, at
its option, at any time after a Flip-in Date and prior to the time that an
Acquiring Person, together with all Affiliates and Associates of such Person,
becomes the Beneficial Owner of more than 50% of the outstanding shares of
Common Stock, elect to exchange all (but not less
than all) of the then outstanding Rights (which shall not include Rights that
have become null and void pursuant to the provisions of Section 3.1(b)) for shares
of Common Stock at an exchange ratio of one share of Common Stock per Right,
appropriately adjusted in order to protect the interests of holders of Rights
generally in the event that after the Separation Time any of the events
described in Section 2.4(a) or (b), or any analogous event, shall have occurred with respect to
the Common Stock (such exchange ratio, as adjusted from time to time, being
hereinafter referred to as the “Exchange
Ratio”). 

16

          Immediately
upon the action of the Board of Directors electing to exchange the Rights,
without any further action and without any notice, the right to exercise the
Rights will terminate and each Right (other than Rights that have become null
and void pursuant to Section 3.1(b)), whether or not previously exercised, will thereafter
represent only the right to receive a number of shares of Common Stock equal to
the Exchange Ratio. 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. Promptly after the action of
the Board of Directors electing to exchange the Rights, the Company shall give
written notice thereof (specifying the steps to be taken to receive shares of
Common Stock in exchange for Rights) to the Rights Agent and the holders of the
Rights (other than Rights that have become null and void pursuant to
Section 3.1(b)) outstanding immediately prior thereto by mailing such notice in
accordance with Section 5.9; provided, however, that the failure to give, or any defect in, such notice
shall not affect the validity of such exchange. Following the action of the
Board of Directors ordering the exchange of any Rights pursuant to this Section
3.1(c), the Company may implement such procedures as it deems appropriate, in
its sole discretion, for the purpose of ensuring that the Common Stock (or such
other consideration) issuable upon an exchange pursuant to this Section 3.1(c) is not
received by holders of Rights that have become null and void pursuant to
Section 3.1(b). Before effecting an exchange pursuant to this Section 3.1(c), the Board
of Directors may direct the Company to enter into a Trust Agreement in such form
and with such terms as the Board of Directors shall then approve (the “Trust
Agreement”). If the Board of Directors so directs, the Company shall enter into
the Trust Agreement and shall issue to the trust created by such agreement (the
“Trust”)
all or a portion (as designated by the Board of Directors) of the shares of
Common Stock (or other securities) issuable pursuant to the exchange, and all
holders of Rights entitled to receive such shares or securities pursuant to the
exchange shall be entitled to receive such shares or securities (and any
dividends paid or distributions made thereon after the date on which such shares
are deposited in the Trust) only from the Trust and solely upon compliance with
the relevant terms and provisions of the Trust Agreement. Prior to effecting an
exchange and registering shares of Common Stock (or other such securities) in
any Person’s name, including any nominee or transferee of a Person, the Company
may require (or cause the trustee of the Trust to require), as a condition
thereof, that any holder of Rights provide evidence, including, but not limited
to, the identity of the Beneficial Owners thereof and their Affiliates and
Associates (or former Beneficial Owners thereof and their Affiliates and
Associates) as the Company shall reasonably request in order to determine if
such Rights are null and void. If any Person shall fail to comply with such
request, the Company shall be entitled conclusively to deem the Rights formerly
held by such Person to be null and void pursuant to Section 3.1(b) and not transferable or
exercisable or exchangeable in connection herewith. Any shares of Common Stock
or other securities issued at the direction of the Board of Directors in
connection herewith shall be validly issued, fully paid and nonassessable shares
of Common Stock or of such other securities (as the case may be), and the
Company shall be deemed to have received as
consideration for such issuance a benefit having a value that is at least equal
to the aggregate par value of the shares so issued. 

17

          Each Person in whose name any certificate for such shares is
issued (or for whom any registration on the stock transfer books of the Company
is made) upon the exchange of Rights pursuant to Section 3.1(c) or (d) shall for all purposes
be deemed to have become the holder of record of the shares represented thereby
on, and such certificate (or registration on the stock transfer books of the
Company) shall be dated (or registered) as of, the date upon which the Rights
Certificate evidencing such Rights was duly exchanged (or deemed exchanged by
the Company) and payment of any applicable taxes and other governmental charges
payable by the holder was made; provided, however, that if the date of such
exchange and payment is a date upon which the stock 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 registration on the stock transfer
books of the Company) shall be dated (or registered) as of the next succeeding
Business Day on which the stock transfer books of the Company are open.

         
(d) In the
event that there shall not be sufficient treasury shares or authorized but
unissued shares of Common Stock to permit the exercise in full of the Rights in
accordance with Section 3.1(a) (or, if the Company so elects to make the exchange referred
to in Section 3.1(c), to permit the issuance of all shares pursuant to the exchange), the
Company shall either (i) call a meeting of stockholders seeking approval to
cause sufficient additional shares to be authorized (provided that if such approval is not
obtained the Company will take the action specified in clause (ii) of this
sentence) or (ii) take such action as shall be necessary to ensure and provide,
as and when and to the maximum extent permitted by applicable law and without
exposing directors to personal liability in connection therewith (as determined
by the Board of Directors) and any agreements or instruments in effect on the
Stock Acquisition Date (and remaining in effect) to which it is a party, that
each Right shall thereafter constitute the right to receive (x) in the case of
any exercise in accordance with Section
3.1(a), at the Company’s option as determined
by the Board of Directors, either (A) in return for the Exercise Price, debt or
equity securities or other assets (or a combination thereof) having a fair value
equal to twice the Exercise Price, or (B) without payment of consideration
(except as may be required for the valid issuance of securities or otherwise
required by applicable law), debt or equity securities or other assets (or a
combination thereof) having a fair value equal to the Exercise Price, or (y) in
the case of an exchange of Rights in accordance with Section 3.1(c), debt or equity
securities or other assets (or a combination thereof) having a fair value equal
to the product of the Market Price of a share of Common Stock on the Flip-in
Date multiplied by the Exchange Ratio in effect on the Flip-in Date, where, in
the case of (x) or (y) above, the fair value of such debt or equity securities or other assets
(or a combination thereof) shall be as determined in good faith by the Board of
Directors. 

18 

         
3.2 Flip-over. (a) Prior to the Expiration
Time, the Company shall not enter into any agreement with respect to, consummate
or permit to occur any Flip-over Transaction or Event unless and until it shall
have entered into a supplemental agreement with the Flip-over Entity, for the
benefit of the holders of the Rights (the terms of which shall be reflected in
an amendment to this Agreement entered into with the Rights Agent), providing
that, upon consummation or occurrence of the Flip-over Transaction or Event, (i)
each Right shall thereafter constitute the right to purchase from the Flip-over
Entity, upon exercise thereof in accordance with
the terms hereof, that number of shares of Flip-over Stock of the Flip-over
Entity having an aggregate Market Price on the date of consummation or
occurrence of such Flip-over Transaction or Event equal to twice the Exercise
Price for a purchase price, payable as set forth in Section 2.3(c), equal to the Exercise Price (such right to be
appropriately adjusted in order to protect the interests of the holders of
Rights generally in the event that after such date of consummation or occurrence
any of the events described in Section
2.4(a) or (b), or any analogous event, shall
have occurred with respect to the Flip-over Stock), and (ii) the Flip-over
Entity shall thereafter be liable for, and shall assume, by virtue of such
Flip-over Transaction or Event and such supplemental agreement, all the
obligations and duties of the Company pursuant to this Agreement. 

         
(b) Prior
to the Expiration Time, unless the Rights are redeemed pursuant to
Section 5.1
pursuant to an agreement entered into by the Company prior to a Flip-in Date,
the Company shall not enter into any agreement with respect to, consummate or
permit to occur any Flip-over Transaction or Event if (i) at the time thereof
there are any rights, warrants or securities outstanding or any other
arrangements, agreements or instruments that would eliminate or otherwise
diminish in any material respect the benefits intended to be afforded by this
Rights Agreement to the holders of Rights upon consummation of such transaction;
(ii) prior to, simultaneously with or immediately after such Flip-over
Transaction or Event, the stockholders of the Person who constitutes, or would
constitute, the Flip-over Entity 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 Flip-over Entity would preclude or
limit the exercisability of the Rights. 

         
(c) The
provisions of this Section 3.2 shall apply to successive Flip-over Transactions or Events.

ARTICLE IV
THE RIGHTS AGENT

         
4.1 General. (a) The Company hereby
appoints the Rights Agent to act as agent for the Company in accordance with the
express terms and conditions hereof (and no implied terms or conditions), and
the Rights Agent hereby accepts such appointment. 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, including but
not limited to reasonable fees and expenses of its counsel and other
disbursements incurred in connection with the preparation, negotiation,
delivery, amendment, administration and execution of this Agreement and the
exercise and performance of its duties hereunder. The Company also agrees to
indemnify the Rights Agent for, and to hold it harmless against, any loss,
liability, damage, judgment, fine, penalty, claim, demand, settlement, cost or
expense (including, but not limited to, the reasonable fees and expenses of
legal counsel) incurred without gross negligence, bad faith or willful
misconduct on the part of the Rights Agent for any action taken, suffered, or
omitted to be taken by the Rights Agent in connection with the acceptance and
administration of this Agreement, or in the exercise or performance of its
duties hereunder, including, but not limited to, the costs and expenses of
defending against any claim of liability. The costs and expenses of enforcing
this right of indemnification shall also be paid by the Company. The provisions
of this Section 4.1 and Section 4.3 (including the provisions relating to indemnification of the
Rights Agent) shall survive the termination of this Agreement, the exercise or
expiration of the Rights and the resignation,
replacement or removal of the Rights Agent hereunder, including, but not limited
to, the reasonable costs and expenses of defending against a claim of liability
hereunder. Notwithstanding anything to the contrary in this Agreement, any
references in this Agreement to the Rights Agent’s gross negligence, bad faith,
or willful misconduct shall be deemed to be as determined by a final,
non-appealable judgment of a court of competent jurisdiction. 

19 

         
(b) The
Rights Agent may conclusively rely upon and shall be protected and shall incur
no liability for or in respect of any action taken, suffered or omitted to be
taken by it in connection with its acceptance and administration of this
Agreement and the exercise and performance of its duties hereunder in reliance
upon any certificate for securities (or registration on the stock transfer books
of the Company) purchasable upon exercise of Rights, Rights Certificate,
certificate 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
4.3. The Rights Agent shall not be deemed to
have knowledge of any event of which it was supposed to receive notice thereof
hereunder, and the Rights Agent shall be fully protected and shall incur no
liability for failing to take any action in connection therewith, unless and
until it has received such notice. 

         
4.2 Merger or Consolidation or Change of Name of Rights Agent. (a) Any Person into which the Rights Agent or any successor
Rights Agent may be merged or with which it may be consolidated, or any Person
resulting from any merger or consolidation to which the Rights Agent or any
successor Rights Agent is a party, or any Person succeeding to the stockholder
services business of the Rights Agent or any successor Rights Agent, will 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 Person would be eligible for appointment as a successor
Rights Agent under the provisions of Section
4.4. If at the time such successor Rights
Agent succeeds to the agency created by this Agreement any of the Rights
Certificates have been countersigned but not delivered, any such successor
Rights Agent may adopt the countersignature of the predecessor Rights Agent and
deliver such Rights Certificates so countersigned; and if at that time any of
the Rights Certificates have not been countersigned, any successor Rights Agent
may countersign such Rights Certificates either in the name of the predecessor
Rights Agent or in the name of the successor Rights Agent, and in all such cases
such Rights Certificates will have the full force and effect provided in the
Rights Certificates and in this Agreement. 

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

20 

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

          (a) The Rights Agent may consult with legal counsel (who may be legal counsel
for the Company and/or an employee of the Rights Agent), and the advice or
opinion of such counsel will be full and complete authorization and protection
to the Rights Agent, and the Rights Agent shall incur no liability for or in
respect of any action taken, suffered, or omitted to be taken by it in
accordance with such advice or opinion. 

         
(b) Whenever in the performance of its duties under this Agreement the Rights
Agent deems it necessary or desirable that any fact or matter be proved or
established by the Company prior to taking, suffering or omitting to take any
action hereunder, such fact or matter (unless other evidence in respect thereof
be herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by a person believed by the Rights Agent to
be the Chief Executive Officer or any Executive Vice President and by the
Treasurer or any Assistant Treasurer or the Secretary or any Assistant Secretary
of the Company and delivered to the Rights Agent, and such certificate will be
full and complete authorization and protection to the Rights Agent, and the
Rights Agent shall incur no liability for or in respect of any action taken,
suffered or omitted to be taken by it under the provisions of this Agreement in
reliance upon such certificate. 

         
(c) The
Rights Agent will be liable hereunder to the Company and any other Person only
for its own gross negligence, bad faith or willful misconduct. Notwithstanding
anything in this Agreement to the contrary, in no event shall the Rights Agent
be liable for special, punitive, indirect, incidental or consequential loss or
damage of any kind whatsoever (including but not limited to lost profits), even
if the Rights Agent has been advised of the likelihood of such loss or damage
and regardless of the form of the action. 

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

         
(e) The
Rights Agent shall not have any liability for or be under any responsibility in
respect of the validity of this Agreement or the execution and delivery hereof
(except the due authorization, execution and delivery hereof by the Rights
Agent) or in respect of the validity or execution of any certificate, if any,
for securities purchasable upon exercise of Rights or Rights Certificate (except
its countersignature thereof); nor will it be responsible for any breach by the
Company of any covenant or failure by the Company to satisfy conditions
contained in this Agreement or in any Rights Certificate; nor will it be
responsible for any change in the exercisability or exchangeability of the
Rights (including, but not limited to, the Rights becoming null and void
pursuant to Section 3.1(b)) or any change or adjustment in the terms of the Rights
(including, but not limited to, any adjustment required under the provisions of
Section 2.4, 3.1 or 3.2) or responsible for the manner, method or amount of any such adjustment
or the ascertaining of the existence of facts that would require any such
adjustment (except with respect to the exercise of Rights evidenced by Right
Certificates after receipt of a certificate
furnished pursuant to Section
2.4, describing any such change or
adjustment, upon which the Rights Agent may rely); nor will it by any act
hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any securities purchasable upon exercise of
Rights or any Rights Certificate or as to whether any securities purchasable
upon exercise of Rights will, when issued, be duly and validly authorized,
executed, issued and delivered and fully paid and nonassessable. 

21 

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

         
(g) The
Rights Agent is hereby authorized and directed to accept instructions with
respect to the performance of its duties hereunder from any person believed by
the Rights Agent to be the Chief Executive Officer, any Executive Vice President
or the Secretary or any Assistant Secretary or the Treasurer or any Assistant
Treasurer of the Company, and to apply to such persons for advice or
instructions in connection with its duties, and such instructions shall be full
authorization and protection to the Rights Agent and the Rights Agent shall not
be liable for any action taken, suffered or omitted to be taken by it in
accordance with instructions of any such person. The Rights Agent shall be fully
authorized and protected in relying upon the most recent instructions received
by any such officer. Any application by the Rights Agent for written
instructions from the Company may, at the option of the Rights Agent, set forth
in writing any action proposed to be taken, suffered or omitted to be taken by
the Rights Agent under this Agreement and the date on or after which such action
shall be taken, suffered or such omission shall be effective. The Rights Agent
shall not be liable for any action taken or suffered by, or omission of, the
Rights Agent in accordance with a proposal included in any such application on
or after the date specified in such application (which date shall not be less
than ten Business Days after, but not including, the date that any officer of
the Company actually receives such application, unless any such officer shall
have consented in writing to an earlier date) unless, prior to taking any such
action (or the effective date in the case of an omission), the Rights Agent
shall have received, in response to such application, written instructions with
respect to the proposed action or omission specifying a different action to be
taken, suffered or omitted to be taken. 

         
(h) The
Rights Agent and any stockholder, Affiliate, director, officer, agent or
employee of the Rights Agent (in each case, other than an Acquiring Person) may
buy, sell or deal in Common Stock, 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 or any such stockholder,
Affiliate, director, officer, agent or employee from acting in any other
capacity for the Company or for any other Person. 

         
(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 will 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 or any other
Person resulting from any such act, default,
neglect or misconduct, absent gross negligence, bad faith or willful misconduct
in the selection and continued employment thereof. 

22 

          (j) If, with respect to any Rights Certificate surrendered to the Rights
Agent for exercise or transfer, the certificate attached to the form of
assignment or form of election to purchase, as the case may be, has not been
completed, the Rights Agent shall not take any further action with respect to
such requested exercise or transfer without first consulting with the Company.

         
(k) No
provision of this Agreement shall require the Rights Agent to expend or risk its
own funds or otherwise incur any financial liability in the performance of any
of its duties hereunder or in the exercise of its rights if it reasonably
believes, after consultation with counsel, that repayment of such funds or
adequate indemnification against such risk or liability is not assured to it.

         
4.4 Change of Rights Agent. The Rights
Agent may resign and be discharged from its duties under this Agreement upon 60
days’ notice (or such lesser notice as is acceptable to the Company) in writing
mailed to the Company and to each transfer agent of Common Stock known to the
Rights Agent by registered or certified mail, and to the holders of the Rights
in accordance with Section 5.9. The Company may remove the Rights Agent upon 30 days’ notice
in writing, mailed to the Rights Agent and to each transfer agent of the Common
Stock by registered or certified mail, and to the holders of the Rights in
accordance with Section 5.9. If the Rights Agent should resign or be removed or otherwise
become incapable of acting, the Company will appoint a successor to the Rights
Agent. If the Company fails to make such appointment within a period of 30 days
after giving 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 any Rights (which holder shall, with such notice, submit such
holder’s Rights Certificate for inspection by the Company), then the holder of
any Rights or the Rights Agent 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) a Person organized and
doing business under the laws of the United States or any state of the United
States, in good standing, which is authorized under such laws to exercise the
powers of the Rights Agent contemplated by this Agreement and is subject to
supervision or examination by federal or state authority or (B) an Affiliate of
a Person described in clause (A) of this sentence. After appointment, the
successor Rights Agent will be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent without
further act or deed, and the predecessor Rights Agent 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 will file notice thereof in writing with the predecessor Rights Agent
and each transfer agent of the Common Stock. Failure to give any notice provided
for in this Section 4.4, 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. 

23 

ARTICLE V
MISCELLANEOUS

          5.1 Redemption. (a) The Board of Directors
may, at its option, at any time prior to the Separation Time elect to redeem all
(but not less than all) of the then outstanding Rights at the Redemption Price
and the Company, at its option, may pay the Redemption Price either by check or in
shares of Common Stock or other securities of the Company deemed by the Board of
Directors, in its sole discretion, to be at least equivalent in value to the
Redemption Price. 

         
(b) Immediately upon the action of the Board of Directors electing to redeem
the Rights pursuant to Section
5.1(a) (or, if the resolution of the Board of
Directors electing to redeem the Rights states that the redemption will not be
effective until the occurrence of a specified future time or event, upon the
occurrence of such future time or event), without any further action and without
any notice, the right to exercise the Rights will terminate and each Right,
whether or not previously exercised, will thereafter represent only the right to
receive the Redemption Price by check or in securities, as determined by the Board
of Directors. Promptly after the Rights are redeemed, the Company shall give
notice of such redemption to the Rights Agent and the holders of the then
outstanding Rights by mailing such notice in accordance with Section 5.9. 

         
5.2 Expiration. The Rights and this
Agreement shall expire at the Expiration Time and no Person shall have any
rights pursuant to this Agreement or any Right after the Expiration Time,
except, if the Rights have been exchanged or redeemed, as provided in
Section 3.1 or
5.1,
respectively. 

         
5.3 Issuance of New Rights Certificates.
Notwithstanding any of the provisions of this Agreement or of the Rights to the
contrary, the Company may, at its option, issue new Rights Certificates
evidencing Rights in such form as may be approved by the Board of Directors to
reflect any adjustment or change in the number or kind or class of shares of
stock purchasable upon exercise of Rights made in accordance with the provisions
of this Agreement. In addition, in connection with the issuance or sale of
shares of Common Stock by the Company following the Separation Time and prior to
the Expiration Time pursuant to the terms of securities convertible or
redeemable into shares of Common Stock (other than any securities issued or
issuable in connection with the exercise or exchange of Rights) or to options,
in each case issued or granted prior to, and outstanding at, the Separation
Time, the Company shall issue to the holders of such shares of Common Stock,
Rights Certificates representing the appropriate number of Rights in connection
with the issuance or sale of such shares of Common Stock; provided, however, that, in each
case, (i) no such Rights Certificate shall be issued if, and to the extent that,
the Company shall be advised by counsel that such issuance would create a
significant risk of material adverse tax consequences to the Company or to the
Person to whom such Rights Certificates would be issued, (ii) no such Rights
Certificates shall be issued if, and to the extent that, appropriate adjustment
shall have otherwise been made in lieu of the issuance thereof, and (iii) the
Company shall have no obligation to distribute Rights Certificates to any
Acquiring Person or Affiliate or Associate of an Acquiring Person or any
transferee of any of the foregoing. 

24 

          5.4 Supplements and Amendments. The
Company and the Rights Agent may from time to time supplement or amend this
Agreement without the approval of any holders of Rights (i) prior to the
Separation Time, in any respect, and (ii) on or after the Separation Time, to
make any changes that the Company may deem necessary or desirable (x) that shall
not materially adversely affect the interests of the holders of Rights generally
(other than the Acquiring Person or any Affiliate or Associate thereof) or (y)
in order to cure any ambiguity or to correct or supplement any provision
contained herein that may be inconsistent with any other provisions herein or
otherwise defective, including, but not limited to, any change in order to
satisfy any applicable law, rule or regulation, including, but not limited to,
any Trading Regulation on any applicable exchange so as to allow trading of the
Company’s securities thereon. Any supplement or amendment authorized by this
Section 5.4
will be evidenced by a writing signed by the Company and the Rights Agent. The
Rights Agent will duly execute and deliver any supplement or amendment hereto
requested by the Company in writing; provided that the Company has
delivered to the Rights Agent a certificate from an appropriate officer of the
Company that states that the proposed supplement or amendment complies with the
terms of this Agreement. Notwithstanding anything in this Agreement to the
contrary, the Rights Agent may, but shall not be obligated to enter into any
supplement or amendment that affects the Rights Agent’s own rights, duties,
immunities or obligations under this Agreement. 

         
5.5 Fractional Shares. If the Company
elects not to issue certificates representing (or register on the stock transfer
books of the Company) fractional shares upon exercise, redemption or exchange of
Rights, the Company shall, in lieu thereof, in the sole discretion of the Board
of Directors, either (a) evidence such fractional shares by depositary receipts
issued pursuant to an appropriate agreement between the Company and a depositary
selected by it providing that each holder of a depositary receipt shall have all
of the rights, privileges and preferences to which such holder would be entitled
as a beneficial owner of such fractional share, or (b) pay to the registered
holder of such Rights the appropriate fraction of the Market Price per share by check. Whenever a payment for fractional Rights or fractional shares of Common
Stock is to be made by the Rights Agent, the Company shall promptly prepare and
deliver to the Rights Agent a certificate setting forth in reasonable detail the
facts related to such payments and the prices and/or formulas utilized in
calculating such payments, and provide sufficient monies to the Rights Agent in
the form of fully collected funds to make such payments. The Rights Agent shall
be fully protected in relying upon such certificate and shall have no duty with
respect to, and shall not be deemed to have knowledge of any payment for
fractional Rights or fractional shares or Common Stock under any section of this
Agreement relating to the payment of fractional Rights or fractional shares of
Common Stock unless and until the Rights Agent shall have received such a
certificate and sufficient monies. 

         
5.6 Rights of Action. Subject to the terms
of this Agreement, rights of action in respect of this Agreement, other than
rights of action vested solely in the Rights Agent, the Board of Directors or
the Company, are vested in the respective holders of the Rights; and any holder
of any Rights, without the consent of the Rights Agent or of the holder of any
other Rights, may, on such holder’s own behalf and for such holder’s own benefit
and the benefit of other holders of Rights, enforce, and may institute and
maintain any suit, action or proceeding against the Company to enforce, or
otherwise act in respect of, such holder’s right to exercise such holder’s
Rights in the manner provided in such holder’s Rights Certificate and in this
Agreement. Without limiting the foregoing or any remedies available to the
holders of Rights, it is specifically
acknowledged that the holders of Rights would not have an adequate remedy at law
for any breach of this Agreement and will be entitled to specific performance of
the obligations under, and injunctive relief against actual or threatened
violations of the obligations of any Person subject to, this Agreement.

25 

          5.7 Holder of Rights Not Deemed a Stockholder. No holder, as such, of any Rights shall be entitled to vote, receive
dividends or be deemed for any purpose to be the holder of shares or any other
securities that may at any time be issuable on the exercise of such Rights, nor
shall anything contained herein or in any Rights Certificate be construed to
confer upon the holder of any Rights, as such, any of the rights of a
stockholder of the Company or any right to vote for the election of directors or
upon any matter submitted to stockholders at any meeting thereof, or to give or
withhold consent to any corporate action, or to receive notice of meetings or
other actions affecting stockholders (except as provided in Section 5.8), or to receive
dividends or subscription rights, or otherwise, until such Rights shall have
been exercised or exchanged in accordance with the provisions hereof.

         
5.8 Notice of Proposed Actions. In case
the Company shall propose at or after the Separation Time and prior to the
Expiration Time (i) to effect or permit a Flip-over Transaction or Event or (ii)
to effect the liquidation, dissolution or winding up of the Company, then, in
each such case, the Company shall give to each holder of a Right, in accordance
with Section 5.9, and to the Rights Agent a written notice of such proposed action, which
shall specify the date on which such Flip-over Transaction or Event,
liquidation, dissolution, or winding up is to take place, and such notice shall
be so given at least 20 Business Days prior to, but not including, the date of
the taking of such proposed action. 

         
5.9 Notices. Notices or demands authorized
or required by this Agreement to be given or made by the Rights Agent or by the
holder of any Rights to or on the Company shall be sufficiently given or made if
delivered or sent by recognized national overnight delivery service or
first-class mail, postage prepaid, addressed (until another address is filed in
writing with the Rights Agent) as follows: 

Research Frontiers Incorporated
240
Crossways Park Drive
Woodbury NY 11797-2033
Attention: President

Subject to
the provisions of Section 4.4, any notice or demand authorized or required by this
Agreement to be given or made by the Company or by the holder of any Rights to
or on the Rights Agent shall be sufficiently given or made if delivered or sent
by recognized national overnight delivery service or first-class mail, postage
prepaid, addressed (until another address is filed in writing with the Company)
as follows: 

Continental Stock Transfer & Trust
Company
17 Battery Place, 8th Floor
New York, NY 10004
Attention:
Compliance Department
(212) 509-4000

26 

Notices or demands authorized or required by this Agreement to
be given or made by the Company or the Rights Agent to or on the holder of any
Rights shall be sufficiently given or made if delivered or sent by first-class
mail, postage prepaid, addressed to such holder at the address of such holder as
it appears upon the registry books of the Rights Agent or, prior to the
Separation Time, on the registry books of the transfer agent for the Common
Stock. Any notice that is mailed in the manner herein provided shall be deemed
given, whether or not the holder receives the notice. 

         
5.10 Suspension of Exercisability or Exchangeability. Notwithstanding any provisions in this Agreement to the
contrary, to the extent that the Board of Directors determines in good faith
that some action will or need be taken pursuant to, or in order to properly give
effect to, Sections 2.3, 3.1 or 4.4 or to comply with federal or state securities laws or
applicable Trading Regulations, the Company may suspend the exercisability or
exchangeability of the Rights for a reasonable period sufficient to allow it to
take such action or comply with such laws or Trading Regulations. In the event
of any such suspension, the Company shall issue as promptly as practicable a
public announcement (with prompt written notice to the Rights Agent) stating
that the exercisability or exchangeability of the Rights has been temporarily
suspended. Notice thereof pursuant to Section
5.9 shall not be required. Upon such
suspension, any rights of action vested in a holder of Rights shall be similarly
suspended. 

          Failure to
give a notice pursuant to the provisions of this Agreement shall not affect the
validity of any action taken hereunder. 

         
5.11 Costs of Enforcement. The Company
agrees that if the Company or any other Person the securities of which are
purchasable upon exercise of Rights fails to fulfill any of its obligations
pursuant to this Agreement, then the Company or such Person will reimburse the
holder of any Rights for the costs and expenses (including legal fees) incurred
by such holder in actions to enforce such holder’s rights pursuant to any Rights
or this Agreement. 

         
5.12 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. 

         
5.13 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 holders of the Rights any legal or equitable right,
remedy or claim under this Agreement and this Agreement shall be for the sole
and exclusive benefit of the Company, the Rights Agent and the holders of the
Rights. 

27

         
5.14 Determination and Actions by the Company, etc. For all purposes of this Agreement, any calculation of the
number of shares of Common Stock or any other class of capital stock outstanding
at any particular time, including, but not limited to, 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 Exchange Act. The Board of Directors shall have the exclusive power
and authority to administer this Agreement and to exercise all rights and powers
specifically granted to the Company, or as may be necessary or advisable in
the administration of this Agreement, including,
but not limited to, the right and power to (i) interpret the provisions of this
Agreement and (ii) make all determinations and calculations deemed necessary or
advisable for the administration or implementation of this Agreement, including,
but not limited to, the right to determine the Rights to be null and voided
pursuant to Section 3.1, after taking into account the purpose of this Agreement and
the Company’s interest in maintaining an orderly trading market in the
outstanding shares of Common Stock. All such actions, interpretations,
calculations and determinations done or made by the Board of Directors shall (x)
be final, conclusive and binding on the Company, the Rights Agent, the holders
of the Rights and all other Persons, and (y) not subject the Board of Directors
or any of the directors of the Company to any liability to the holders of the
Rights. 

         
5.15 Descriptive Headings; Section References. Descriptive headings appear herein for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.
Where a reference in this Agreement is made to a Section, such reference shall
be to a Section of this Agreement unless otherwise indicated. 

         
5.16 GOVERNING LAW; EXCLUSIVE JURISDICTION.
(a) THIS AGREEMENT AND EACH RIGHT 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;
PROVIDED,
HOWEVER,
THAT ALL PROVISIONS REGARDING THE RIGHTS, DUTIES, OBLIGATIONS AND LIABILITIES OF
THE RIGHTS AGENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY
WITHIN SUCH STATE. 

         
(b) (i) THE
COMPANY AND EACH HOLDER OF RIGHTS HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE
JURISDICTION OF THE COURT OF CHANCERY OF THE STATE OF DELAWARE, OR, IF SUCH
COURT SHALL LACK SUBJECT MATTER JURISDICTION, THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE, OVER ANY SUIT, ACTION, OR PROCEEDING ARISING OUT
OF OR RELATING TO OR CONCERNING THIS AGREEMENT. The Company and each holder of
Rights acknowledge that the forum designated by this paragraph (b) has a reasonable
relation to this Agreement, and to such Persons’ relationship with one another.

         
(ii) The
Company and each holder of Rights hereby waive, to the fullest extent permitted
by applicable law, any objection which they now or hereafter have to personal
jurisdiction or to the laying of venue of any such suit, action or proceeding
brought in any court referred to in paragraph
(b)(i). The Company and each holder of Rights
undertake not to commence any action subject to this Agreement in any forum
other than the forum described in this paragraph (b). The Company and each
holder of Rights agree that, to the fullest extent permitted by applicable law,
a final and non-appealable judgment in any such suit, action, or proceeding
brought in any such court shall be conclusive and binding upon such Persons.

28 

         
5.17 Counterparts. This Agreement may be
executed in counterparts and by each party hereto on a separate counterpart,
both of which when so executed shall be deemed to be an original and both of which taken together shall constitute one and
the same agreement. Delivery of an executed counterpart of a signature page to
this Agreement by facsimile or e-mail transmission shall be effective as
delivery of a manually executed counterpart of this Agreement. 

         
5.18 Severability. If any term, covenant,
restriction or provision hereof or the application thereof to any circumstance
shall, in any jurisdiction and to any extent, be invalid or unenforceable, such
term, covenant, restriction or provision shall be ineffective as to such
jurisdiction to the extent of such invalidity or unenforceability without
invalidating or rendering unenforceable the remaining terms, covenants,
restrictions and provisions hereof or the application of such term, covenant,
restriction or provision to circumstances other than those as to which it is
held invalid or unenforceable. 

         
5.19 Renewal Amendment. Prior to the
applicable date determined pursuant to clause
(iii) of the definition of “Expiration Time”
(the “Applicable Expiration
Date”) (or, if the Applicable Expiration Date
is hereafter amended to extend such date pursuant to this Section 5.19, then prior to the
then Applicable Expiration Date), the Board of Directors may review this
Agreement to determine whether extending the Applicable Expiration Date would be
in the best interests of the Company and its stockholders. Upon the approval of
the Board of Directors to extend the Applicable Expiration Date, the Company
shall execute, and shall request (in accordance with Section 5.4) that the Rights Agent
execute, an amendment to this Agreement pursuant to Section 5.4 giving effect to such
extension.

         
5.20 USA
PATRIOT Act. Each Person that is a party
hereto acknowledges that the Rights Agent is subject to the customer
identification program (“Customer
Identification Program”) requirements under the USA
PATRIOT Act and its implementing regulations, and that the Rights Agent must
obtain, verify and record information that allows the Rights Agent to identify
each such person or entity. Accordingly, prior to accepting an appointment
hereunder, the Rights Agent may request information from any such person or
entity that will help the Rights Agent to identify such person or entity,
including, but not limited to, as applicable, such person or entity’s physical
address, tax identification number, organizational documents, certificate of
good standing, license to do business, or any other information that the Rights
Agent deems necessary. Each Person that is a party hereto acknowledges that the
Rights Agent cannot accept an appointment hereunder unless and until the Rights
Agent verifies each such person or entity’s identity in accordance with the
Customer Identification Program requirements. 

[remainder of page intentionally left blank] 

29 

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

	RESEARCH FRONTIERS INCORPORATED
	 
	By:  	 /s/ Seth L. Van
      Voorhees
	Name:  	     Seth L. Van
      Voorhees
	Title:	     Chief Financial
      Officer
	 
	 
	CONTINENTAL STOCK TRANSFER &
	TRUST COMPANY, as Rights Agent
	 
	By:	 
	Name:
	Title:

[Signature Page to Stockholder
Protection Rights Agreement] 

EXHIBIT A 

[Form of Rights Certificate]

	Certificate No. W-	 	                    	 Rights

THE RIGHTS
ARE SUBJECT TO REDEMPTION OR MANDATORY EXCHANGE, AT THE OPTION OF THE COMPANY,
ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. RIGHTS “BENEFICIALLY OWNED” BY
“ACQUIRING PERSONS” OR “AFFILIATES” OR “ASSOCIATES” THEREOF (AS SUCH TERMS ARE
DEFINED IN THE RIGHTS AGREEMENT) OR TRANSFEREES OF ANY OF THE FOREGOING WILL BE
NULL AND VOID. [THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE
BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN
AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (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 3.1(b) OF SUCH AGREEMENT.]1 

Rights Certificate 

Research Frontiers Incorporated

          This certifies that _____________, or registered assigns, is
the registered holder of the number of Rights set forth above, each of which
entitles the registered holder thereof, subject to the terms, provisions and
conditions of the Restated and Amended Stockholder Protection Rights Agreement,
dated as of February 11, 2013 (as amended from time to time, the
“Rights Agreement”), between Research Frontiers Incorporated, a Delaware corporation (the
“Company”),
and Continental Stock Transfer & Trust Company, a New York banking
corporation, as Rights Agent (the “Rights
Agent,” which term shall include any
successor Rights Agent under the Rights Agreement), to purchase from the Company
at any time after the Separation Time (as such term is defined in the Rights
Agreement) and prior to the Expiration Time (as such term is defined in the
Rights Agreement), one share of Common Stock, par value $0.0001 per share (the
“Common Stock”), of the Company (subject to adjustment as provided in the Rights
Agreement) at the Exercise Price referred to below, upon presentation and
surrender of this Rights Certificate with the Form of Election to Exercise duly
executed and properly completed at the office of the Rights Agent designated for
such purpose. The Exercise Price shall initially be $40 per Right and shall be
subject to adjustment in certain events as provided in the Rights Agreement.

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

          In certain circumstances described in the Rights Agreement,
the Rights evidenced hereby may entitle the registered holder thereof to
purchase securities of an entity other than the Company or securities of the
Company other than Common Stock or assets of the Company, all as provided in the
Rights Agreement. 

          This Rights
Certificate is subject to all of the terms, provisions and conditions of the
Rights Agreement, which terms, provisions and conditions are hereby incorporated
herein by reference and made a part hereof and to which Rights Agreement
reference is hereby made for a full description of the rights, limitations of
rights, obligations, duties and immunities hereunder of the Rights Agent, the
Company and the holders of the Rights Certificates. Copies of the Rights
Agreement are on file at the principal office of the Company and are available
without cost upon written request. 

          This Rights
Certificate, with or without other Rights Certificates, upon surrender at the
office of the Rights Agent designated for such purpose, may be exchanged for
another Rights Certificate or Rights Certificates of like tenor evidencing an
aggregate number of Rights equal to the aggregate number of Rights evidenced by
the Rights Certificate or Rights Certificates so surrendered. If this Rights
Certificate shall be exercised in part, the registered holder shall be entitled
to receive, upon surrender hereof, another Rights Certificate or Rights
Certificates for the number of whole Rights not exercised. 

          Subject to
the provisions of the Rights Agreement, each Right evidenced by this Certificate
may be (a) redeemed by the Company under certain circumstances, at its option,
at a redemption price of $0.0001 per Right, or (b) exchanged by the Company
under certain circumstances, at its option, for one share of Common Stock per
Right (or, in certain cases, other securities or assets of the Company), subject
in each case to adjustment in certain events as provided in the Rights
Agreement.

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

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

2 

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

	Date:  	

	ATTEST:		RESEARCH FRONTIERS
			INCORPORATED
	 
		 	 	By:  	
	Secretary		Name:
		 	Title:

Countersigned: 

CONTINENTAL STOCK TRANSFER &
TRUST
COMPANY, as Rights Agent 

	By:  	 	 
	Name:
	Title:

3 

[Form of Reverse Side of
Rights Certificate] 

FORM OF
ASSIGNMENT 

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

	
            FOR VALUE RECEIVED _______________ hereby
      sells, assigns and transfers unto  
	 

	   
	(Please print name and address of
      transferee)

this Rights Certificate, together with all right, title and interest
therein, and does hereby irrevocably constitute and appoint _________ as
Attorney-in-fact, to transfer the within Rights Certificate on the books of the
within-named Company, with full power of substitution. 

	Dated:  	 	, 	 	 

	Signature	
	Guaranteed:	
		Signature
	 
	 
	 
		(Signature must correspond
      to name as written upon the face of this Rights Certificate in every
      particular, without alteration or enlargement or any change
      whatsoever)

     Signatures must be guaranteed by a participant in a Medallion Signature
Guarantee Program at a guarantee level acceptable to the Company’s Rights Agent.

(To be completed if true)

The undersigned hereby
represents, for the benefit of the Company and all holders of Rights and shares
of Common Stock, that the Rights evidenced by this Rights Certificate are not,
and, to the knowledge of the undersigned, have never been, Beneficially Owned by
an Acquiring Person or an Affiliate or Associate thereof (as each such term is
defined in the Rights Agreement). 

	 
	Signature

NOTICE 

     In the event
the certification set forth above is not completed in connection with a
purported assignment, the Company will deem the Beneficial Owner of the Rights
evidenced by the enclosed Rights Certificate to be an Acquiring Person or an
Affiliate or Associate thereof (as each such term is defined in the Rights
Agreement) or a transferee of any of the foregoing and accordingly will deem the
Rights evidenced by such Rights Certificate to be null and void and not
transferable or exercisable.

2

[To be attached to each Rights
Certificate]

FORM OF ELECTION TO
EXERCISE 

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

TO: Research Frontiers Incorporated

          The undersigned hereby irrevocably elects to exercise
______________________whole Rights represented by the attached Rights
Certificate to purchase the shares of Common Stock or such other securities or
assets as may then be issuable upon the exercise of such Rights and requests
that certificates for such shares be issued in the name of: 

	Address:  	   
		   

	Social Security or Other
    Taxpayer
	Identification Number:  	 

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

	Address:  	   
		   

	Social Security or Other
    Taxpayer
	Identification Number:  	 

	Dated:  	 	, 	 	 

	Signature	 
	Guaranteed:	 
		Signature
	 
		(Signature must correspond to name as written upon the
      face of the attached Rights Certificate in every particular, without
      alteration or enlargement or any change
whatsoever)

     Signatures
must be guaranteed by a participant in a Medallion Signature Guarantee Program
at a guarantee level acceptable to the Company’s Rights Agent. 

(To be completed if true) 

The undersigned hereby represents, for
the benefit of the Company and all holders of Rights and shares of Common Stock,
that the Rights evidenced by the attached Rights Certificate are not, and, to
the knowledge of the undersigned, have never been, Beneficially Owned by an
Acquiring Person or an Affiliate or Associate thereof (as each such term is
defined in the Rights Agreement). 

	
	Signature

NOTICE 

    
In the event the certification set forth above is not completed in
connection with a purported exercise, the Company will deem the Beneficial Owner
of the Rights evidenced by the attached Rights Certificate to be an Acquiring
Person or an Affiliate or Associate thereof (as defined in the Rights Agreement)
or a transferee of any of the foregoing and accordingly will deem the Rights
evidenced by such Rights Certificate to be null and void and not transferable or
exercisable.

210-K 2012 Exhibit 10.33 BarbaraGoodSteinOfferLetter6-25-12

Exhibit 10.33
[Vonage Letterhead]

June 25, 2012

Barbara Goodstein
257 West 86th St, Apt#13B
New York, NY 10024

Dear Barbara:

We are pleased to inform you that after careful consideration, Vonage Holdings Corp. (the “Company”) is extending an offer of employment, subject to the approval of the Board of Directors of Vonage Holdings Corp. (the “Board”).  This offer letter (the “Offer Letter”), if accepted by you and approved by the Board, shall set forth the terms of your employment.

1. Employment

		
	(a)
	You will be employed in the position of Chief Marketing Officer.

		
	(b)
	You will report to Marc Lefar, Chief Executive Officer.

		
	(c)
	Your employment will commence on July 9, 2012 (the “Commencement Date”).

2. Location  
Your office location will be at the Company's headquarters, which is located in Holmdel, NJ. 

3. Compensation

		
	(a)
	The Company will pay you an annual base salary (“Base Salary”) of $425,000, less applicable withholding, payable in equal installments in accordance with the Company’s regular payroll practices for similarly situated employees, but in no event less frequently than biweekly in arrears.

		
	(b)
	In addition to base salary, you will be eligible for a Target Bonus Opportunity (“TBO”) of 75% of your base salary. TBO payouts are not guaranteed and are granted in the Company’s sole discretion. Your actual bonus attainment may be greater or less than 100%, with a maximum attainment of 175%, depending upon individual and Company performance.  For 2012, you will be guaranteed a minimum bonus payout of 75% of your actual wage base earned for the year.  When made, TBO payouts are generally paid in late February/early March.  You must be employed on the payout date to receive any TBO payout. 

4. Stock Options

In addition, you will be granted an option under Vonage Holding Corp.’s 2006 Incentive Plan (the “Incentive Plan”) to purchase 1,000,000 shares of Vonage Holding Corp.’s common stock, pursuant to a stock option agreement (the “Stock Option Agreement”) substantially in the form of the Company’s form of stock option agreement in accordance with the Incentive Plan (the number of shares and exercise price are subject to adjustment based on subsequent stock splits, reverse stock splits, other adjustments, or recapitalizations, as provided in the Incentive Plan). Subject to your continued employment on the applicable vesting dates, the options will vest and become exercisable as to 1/4th of the shares on each of the first, second, third and fourth anniversaries of the date of the award, which will be September 4, 2012.  The exercise price will be the closing price of a share of Company stock on the date of the award.  The stock option grant will be governed by and subject to the terms of the Incentive Plan and the Stock Option Agreement and in the event of a conflict between this paragraph and the Incentive Plan and Stock Option Agreement, the terms of the Incentive Plan and Stock Option Agreement shall control.

6. Severance
    
In addition, in the event your employment is terminated by the Company without Cause or by you with Good Reason, each as defined below, you will be entitled to (i) severance pay equal to twelve (12) months of your then-current base salary, less applicable withholding, which will be paid by the Company during its regular payroll cycle over the twelve (12) month period following the date of your employment termination; provided that the first payment shall be made on the sixtieth (60th) day after your termination of employment, and such first payment shall include payment of any amounts that otherwise would be due prior thereto,  (ii) (x) if such termination of employment occurs in calendar year 2012, a pro rata portion of the Guaranteed Bonus, or (y) if such termination of employment occurs thereafter, a pro-rata portion of your TBO for the year of termination based on the Company’s actual performance for such year, in either case, less applicable withholding and payable in the year following the year in which your employment terminates at such time as annual bonuses in respect of such year are normally paid to other senior executives of the Company; provided, however that the Company shall not be required to make the payments set forth in this paragraph 6 unless you  execute and deliver to the Company a Separation Agreement and General Release in a form reasonably acceptable to the Company in its sole discretion (the “Release”.) and such Release has become effective and irrevocable in its entirety within sixty (60) days of your termination of 

2

employment.  The Release shall not contain post-employment obligations more restrictive then those post-employment obligations set forth in the Non-Compete Agreement.  For the avoidance of doubt, any severance payments payable pursuant to this paragraph 6 shall be forfeited unless an effective Release has been received by the Company and has become irrevocable no later then sixty (60) days following your termination of employment.  During the Severance period, you shall continue coverage in the Company’s medical and dental health care plans at your active employee rate; provided, that you are and remain eligible for continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended; provided, further, that such continuation coverage shall immediately cease if you become eligible to receive group health coverage from another employer.

“Cause” means (i) material failure to perform your employment duties (not as consequences of any illness, accident or other disability, (ii) continued, willful failure to carry out any reasonable lawful direction of the Company, (iii) diverting or usurping a corporate opportunity of the Company (Iv) fraud, willful malfeasance, gross negligence or recklessness in the performance of employment duties, (v) willful failure to comply with any of the material terms of this Offer Letter (vi) other serious, willful misconduct which causes material injury to the Company or its reputation, including but not limited to, willful or gross misconduct toward any of the Company’s other employees, (vii) conviction of, or pleas of nolo contendre  to, a felony or a crime involving moral turpitude, and (viii) violation of any written Company policies or procedures; provided, however that no event or condition describe in clauses (i), (ii) or (v) shall constitute Cause unless (x) the Company give you  written notice of its intension to terminate your employment for Cause and the grounds for such termination and (y) such grounds for termination (if susceptible to correction) are not corrected by you within 15 day of your receipt of such notice.  If you do not correct the grounds for termination during such 15-day cure period, your termination of employment for Cause shall become effective on the first business day following the end of the cure period.  Unless otherwise advised by the Company, you will be expected to perform services for the Company during the cure period.

“Good Reason” means:  (i) a decrease in your base salary; (ii) a material diminution of your authorities, duties or responsibilities, (iii) a failure of the Company to pay compensation due and payable to you in connection with your employment or (iv) relocation by the Company of your principal place of employment to a location that results in your commuting distance being at least 30 miles greater than your commuting distance on the date you commence employment;  provided, however that no event or condition described in clauses (i) through (iv) shall constitute Good 

3

Reason unless (x) you give the Company’s most senior Human Resources employee written notice of your intention to terminate your employment for Good Reason and the grounds for such termination within 45 days after the occurrence of the event giving rise to the “Good Reason” termination and (y) such grounds for termination (if susceptible to correction) are not corrected by the Company within 30 days of its receipt of such notice (or, in the event that such grounds cannot be corrected within such 30-day period, the Company has not taken all reasonable steps within such 30 day period to correct such grounds as promptly as practicable thereafter).  If the Company does not correct the grounds for termination during such 30 day cure period (or take all reasonable steps within such 30 days period to correct such grounds as promptly as practicable thereafter), your termination of employment for “Good Reason” shall become effective on the first business day following the end of the cure period.  

Unless otherwise advised by the Company, you will be expected to perform services for the Company during the cure period.

7. Benefits

		
	(a)
	You shall be entitled to participate in all employee health and welfare plans, programs and arrangements of the Company, to the extent you are eligible to participate in such plans, in accordance with their respective terms, as may be amended from time to time and on the basis no less favorable than that made available to other senior executives of the Company.

		
	(b)
	Participation in the health and dental plan of the Company begins on the first day of the month immediately after your start date in accordance with the terms of the plans.

		
	(c)
	You will annually be entitled to 20 Flexible Days Off (FDO) to be used in accordance with our Flexible Days Off policy

(d) You are eligible to participate in the Company’s 401(k) plan on the first day of the month following the completion of three (3) months of employment.   
(e) If you choose to participate in these benefits, you will receive a Summary Plan Description for the health and dental insurance, as well as the 401(k), plans.  A copy of the plan documents is available from the Plan Administrator (as defined in the Summary Plan Description).

8. Miscellaneous

4

		
	(a)
	In connection with your employment you will be required to enter into a Confidentiality and Innovations Agreement with the Company.  You also will be subject to a non-compete agreement under which you will be subject to non-solicitation and non-competition restrictive covenants during the term of your employment and for a period of one (1) year thereafter.

  
		
	(b)
	You hereby represent to the Company that you are under no obligation or agreement that would prevent you from becoming an employee of the Company or adversely impact your ability to perform the expected responsibilities.  By accepting this offer, you agree that no trade secret or proprietary information not belonging to you or the Company will be disclosed or used by you at the Company.

		
	(c)
	This Offer Letter is not an employment contract and does not create an implied or express guarantee of continued employment.  By accepting this offer, you are acknowledging that you are an employee at-will.  This means that either you or the Company may terminate your employment at any time and for any reason or for no reason. This Offer Letter contains the entire agreement and understanding between you and the Company with respect to the terms of your employment and supersedes any prior or contemporaneous agreements, understandings, communications, offers, representations, warranties, or commitments by or on behalf of the Company, whether written or oral with respect to the terms of your employment.   Except for amendments to increase compensation payable to you, the terms of this Offer Letter may not be amended except pursuant to a written agreement between you and the Company.

		
	(d)
	Section 409A

		
	(i)
	The intent of the parties is that payments and benefits under this Offer Letter comply with or be exempt from Internal Revenue Code Section 409A and the regulations and guidance promulgated there under (collectively “Section 409A”) and, accordingly, to the maximum extent permitted, this Offer Letter shall be interpreted to be exempt from Section 409A or in compliance therewith, as applicable.  If you notify the Company that you have received advice of tax counsel of national reputation with expertise in Section 409A that any provision of this Offer Letter (or of any award of compensation, including equity compensation or benefits) would cause you to incur any additional tax or interest under Section 409A (with specificity as to the reason thereof) or the Company independently makes such determination, the Company shall, after consulting with you, reform such provision to try to comply with Section 409A through good faith modifications to the minimum extent reasonably appropriate to conform with Section 409A.  To the extent that any provision hereof is modified in order to comply with or be exempt from Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and 

5

economic benefit to you and the Company of the applicable provision without violating the provisions of Section 409A.

		
	(ii)
	A termination of employment shall not be deemed to have occurred for purposes of any provision of this Offer Letter providing for the payment of any amounts or benefits that are considered nonqualified deferred compensation under Section 409A upon or following a termination of employment, unless such termination is also a “separation from service” within the meaning of Section 409A and the payment thereof prior to a “separation from service” would violate Section 409A.  For purposes of any such provision of this Offer Letter relating to any such payments or benefits, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”  

		
	(iii)
	If, as of the date of your “separation from service” from the Company, you are a “specified employee” (within the meaning of that term under Section 409A(a)(2)(B)), then with regard to any payment or the provision of any benefit that is considered “nonqualified deferred compensation” under Section 409A (whether under this Offer Letter, any other plan, program, payroll practice or any equity grant) and is payable upon your separation from service, such payment or benefit shall not be made or provided until the date which is the earlier of  (A) the expiration of the six (6) month-and-one-day period measured from the date of your “separation from service,” and (B) the date of your death (the “Delay Period”) and this Offer Letter and each such plan, program, payroll practice or equity grant shall hereby be deemed amended accordingly.  Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this paragraph (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to you in a lump sum with interest at the prime rate as published in the Wall Street Journal on the first business day of the Delay Period (provided that any payment measured by a change in value that continues during the Delay Period shall not be credited with interest for the Delay Period), and any remaining payments and benefits due under this Offer Letter shall be paid or provided in accordance with the regularly scheduled payment dates specified for them herein.

		
	(iv)
	For purposes of Section 409A, your right to receive any installment payments pursuant to this Offer Letter shall be treated as a right to receive a series of separate and distinct payments.  Whenever a payment under this Offer Letter specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.

6

		
	(v)
	To the extent any reimbursement or in-kind payment provided pursuant to this Offer Letter is deemed nonqualified deferred compensation subject to Section 409A then (i) all such expenses or other reimbursements as provided herein shall be payable in accordance with the Company’s policies in effect from time to time, but in any event shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by you; (ii) no such reimbursement or expenses eligible for reimbursement in any taxable year shall in any way affect the expenses eligible for reimbursement in any other taxable year; and (iii) the right to such reimbursement or in-kind benefits shall not be subject to liquidation or exchanged for another benefit.

		
	(vi)
	No amounts payable to you by the Company or any of its subsidiaries or affiliates under this Agreement or any other agreement that constitute nonqualified deferred compensation subject to Section 409A shall be subject to offset by any other amount, except as permitted under Section 409A.

		
	(a)
	Withholding: The Company may withhold any tax (or other governmental obligation) that may result from the payments made and benefits provided to you under this Offer Letter or require you to make other arrangements satisfactory to the Company to enable it to satisfy all such withholding requirements.

United States law requires all companies to verify an employee's authorization to work in the United States.  If you accept this offer, you will need to bring certain documents with you on your first day that allows the Company to verify your work authorization.  Enclosed is an Employment Eligibility Verification (form I-9).  Please review the form and bring the appropriate documents required for employment verification on your start date.  You will be asked to complete the form in the presence of a witness on your start date.

Also enclosed are a Direct Deposit Authorization Form and an Employee Withholding Allowance Certificate (W-4).  Please complete these forms and bring them with you on your start date.

If these terms are agreeable to you, please sign and date the Offer Letter in the appropriate space at the bottom and return it to me by Monday, June 25, 2012.  This Offer Letter will be of no force and effect if not signed and postmarked by Monday, June 25, 2012. 

We are excited at the prospect of you joining the Company, and look forward to your future contributions.    

Sincerely,

/s/ Marc Lefar
    

7

Marc Lefar
Chief Executive Officer

Agreed and Accepted:

Name: _______/s/ Barbara Goodstein _______
                                        Barbara Goodstein

Date:   ________6/25/12___________

8

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