Document:

AMENDMENT NO.1 TO SECURITIES PURCHSE AGREEMENT

         This   Amendment  No.  1  to  Securities   Purchase   Agreement   (this
"AMENDMENT"),  dated as of November  __,  2006,  is entered  into by and between
REMOTE DYNAMICS,  INC., a Delaware corporation (the "COMPANY"),  and SDS CAPITAL
GROUP SPC,  LTD. for itself and on behalf of its Class A  Segregated  portfolio,
Class B  Segregated  portfolio,  Class C  Segregated  portfolio  and all  future
Segregated  portfolios  created by it from time to time  ("PURCHASER"),  for the
purpose modifying certain terms of the Securities Purchase Agreement dated as of
May 31, 2005, by and between the Company and Purchaser (as amended,  modified or
supplemented  from time to time, the  "SECURITIES  PURCHASE  AGREEMENT") and the
other Transaction  Documents (as defined in the Securities  Purchase  Agreement)
Capitalized  terms  used  herein  without  definition  shall  have the  meanings
ascribed to such terms in the Securities Purchase Agreement.

         WHEREAS,  concurrently  herewith,  Bounce Mobile Systems, Inc. ("BMSI")
and the  Company  are  entering  into a Share  Exchange  Agreement  (the  "SHARE
EXCHANGE AGREEMENT" pursuant to which the Company is acquiring from BMSI 100% of
the  outstanding  capital  stock  of  BounceGPS,  Inc.  in  exchange  for  5,000
authorized,  but  unissued,  shares of the  Company's  Series C Preferred  Stock
having such  rights,  preferences  and  privileges  as set forth in the Series C
Preferred Stock  Certificate of Designations  included as Exhibit A to the Share
Exchange  Agreement (the "SERIES C PREFERRED")  and the other  securities of the
Company referenced therein; and

         WHEREAS, concurrently herewith, the Company is entering into a Note and
Warrant  Purchase  Agreement (the "NOTE PURCHASE  AGREEMENT")  pursuant to which
BMSI and the other  purchasers named therein are purchasing from the Company the
Series B Notes, the OID Notes and the Warrants, each as defined therein ; and

         WHEREAS,  Purchaser desires to induce (a) BMSI and the Company to enter
into  the  Share  Exchange   Agreement  and  to  consummate   the   transactions
contemplated  thereby  and (b) the  Company  and  BMSI to  enter  into  the Note
Purchase Agreement and to consummate the transactions contemplated thereby,

         NOW,  THEREFORE,  in consideration of the above, and for other good and
valuable  consideration,   the  receipt  and  sufficiency  of  which  is  hereby
acknowledged, the parties hereto agree as follows:

         1.  Purchaser  hereby  waives any  breach or  default  by the  Company,
whether occurring on or prior to the date hereof or at any time hereafter,  with
respect to the following  provisions of the Securities Purchase  Agreement:  (a)
the representations or warranties of the Company set forth in Section 3, (b) the
first  sentence of Section 4(b),  (c) the second  sentence of Section 4(c),  (d)
Section 4(g),  (e) Section 4(q),  (f) Section  4(t),  (g) Section 4(u),  and (h)
Section 4(v).

         2. The  Securities  Purchase  Agreement  is hereby  amended by deleting
Sections 4(p), 4(r) and 4(s) thereof in their entirety.

<PAGE>

         3.  Purchaser  hereby  consents  under  Section 4(k) of the  Securities
Purchase  Agreement to the repayment,  repurchase or redemption of the Notes (as
defined in the Note Purchase Agreement and in the Share Exchange Agreement).

         4. The Registration Rights Agreement is hereby amended as follows:

                  (a) All  references  in Section  2(a) and (b)  thereof to "the
         date hereof" or "the issuance of the C Warrants"  shall be deemed to be
         references to the date of this Amendment;

                  (b) Clause  (iii) of the third  sentence  of  Section  2(b) is
         deleted in its entirety;

                  (c) The words "or the Common  Stock is not listed or  included
         for  quotation on the SmallCap  Market,  the National  Market,  NYSE or
         AMEX" are  deleted  from  clause (F) of the fourth  sentence of Section
         2(b);

                  (d) The last two  sentences  of  Section  3(b) are  deleted in
         their entirety; and

                  (e) The words "and the fees and  disbursements  of one counsel
         selected  by the  Investors  holding  a  majority  of  the  Registrable
         Securities (with a maximum  reimbursable fee of $7,500 unless otherwise
         approved  by  the  Company,   which  approval  shall  not  be  withheld
         unreasonably)" are deleted from Section 5.

         5. The May Warrant is hereby  amended by deleting  Section 3(f) thereof
in its entirety.

         6.  Purchaser   hereby  consents  to  the  amendments  to  the  rights,
preferences  and privileges of the Series B Preferred  Stock as set forth in the
form of Amended and Restated Certificate of Designation,  Preferences and Rights
of the Series B Preferred  Stock  attached as Exhibit H-1 to the Share  Exchange
Agreement.

         7. Purchaser hereby waives any and all adjustments to the conversion or
exercise price of, and number of shares issuable upon conversion or exercise of,
the Series B  Preferred  Stock and the  Warrants  (and any other  securities  or
rights  held  by  Purchaser  which  are  convertible   into  or  exercisable  or
exchangeable  for, any shares of capital stock of the Company) in respect of the
Series C  Preferred,  including  in  respect  of the  issuance  of the  Series C
Preferred, the conversion thereof, and changes in the Conversion Rate thereof.

         8.  Purchaser  hereby  waives any  breach or  default  by the  Company,
whether  occurring  on or prior to the date hereof or at any time within 60 days
hereafter,  with respect to any and all provisions of the Transactions Documents
(other than those specified in paragraph 1 above).

         9. From and after the date hereof,  Purchaser  and the Company agree to
execute and deliver such other amendments, waivers and consents to and under the
Transactions  Documents, as may be necessary, as reasonably determined by BMSI's
independent public accountant, to

                                      -2-
<PAGE>

enable  BMSI  to  consolidate   the  Company's   financial   results  in  BMSI's
consolidated financial statements.

         10.  Purchaser  hereby  represents and warrants to the Company that (a)
Purchaser  owns  beneficially  all  of  the  outstanding  Securities,   (b)  the
execution,  delivery and  performance  by Purchaser of this Amendment are within
Purchaser's organizational powers and have been duly authorized by all necessary
corporate action of Purchaser,  and (c) this Amendment has been duly and validly
executed  and  delivered  by  Purchaser  and  constitutes  a valid  and  binding
agreement of Purchaser,  enforceable  against  Purchaser in accordance  with its
terms.

         11. This Amendment  shall be effective as of the date hereof  following
the execution and delivery of same by each of the Company and Purchaser.

         12. This  Amendment  shall be binding upon the parties hereto and their
respective  successors  and permitted  assigns and shall inure to the benefit of
and be  enforceable  by each  of the  parties  hereto  and  its  successors  and
permitted assigns.  The parties acknowledge that BMSI is an intended third party
beneficiary  of this  Amendment.  This  Amendment may not be modified,  changed,
supplemented or terminated,  nor may any obligations hereunder be waived, except
by written  instrument  signed by the parties to be charged or by its agent duly
authorized  in writing or as  otherwise  expressly  permitted  herein.  Any such
modification,   change,  supplement,   termination  or  waiver,  and  any  other
modification,  change,  supplement,  termination  or waiver  to the  Transaction
Documents  that  would be in any way  inconsistent  with this  Amendment,  shall
require the written consent of BMSI.

         13. THIS AMENDMENT  SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE  WITH
AND GOVERNED BY THE LAW OF THE STATE OF DELAWARE. This Amendment may be executed
in any number of  counterparts,  each of which shall be an original,  but all of
which shall constitute one instrument.

                                      -3-
<PAGE>

*        *        *        *

         IN WITNESS  WHEREOF,  each of the Company and Purchaser has caused this
Amendment No. 1 to the  Securities  Purchase  Agreement to be signed in its name
effective as of this ___ day of November, 2006.

                                    REMOTE DYNAMICS, INC.

                                    By:________________________________
                                       Name:
                                       Title:

                                    SDS CAPITAL  GROUP SPC,  LTD. FOR ITSELF AND
                                    ON  BEHALF   OF  ITS   CLASS  A   SEGREGATED
                                    PORTFOLIO,  CLASS  B  SEGREGATED  PORTFOLIO,
                                    CLASS C SEGREGATED  PORTFOLIO AND ALL FUTURE
                                    SEGREGATED  PORTFOLIOS  CREATED  BY IT  FROM
                                    TIME TO TIME

                                    By:________________________________
                                       Name:
                                       Title:

                                      -4-AMENDED
      AND RESTATED

    

    STOCKHOLDER
      PROTECTION RIGHTS AGREEMENT

    

    dated
      as of

    

    December
      6, 2006

    

    between

    

    WILSHIRE
      ENTERPRISES, INC.

    

    and

    

    CONTINENTAL
      STOCK TRANSFER & TRUST COMPANY,

    

    as
      Rights Agent

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    TABLE
      OF CONTENTS

    

    
      	 	 	
              Page

            
	
              Article
                I

              CERTAIN
                DEFINITIONS

            
	 	 	 
	
              Section
                1.1

            	
              Certain
                Definitions

            	
              2

            
	 	 	 
	
              Article
                II

              THE
                RIGHTS

            
	 	 	 
	
              Section
                2.1

            	
              Summary
                of Rights

            	
              7

            
	
              Section
                2.2

            	
              Legend
                on Common Stock Certificates

            	
              7

            
	
              Section
                2.3

            	
              Exercise
                of Rights; Separation of Rights

            	
              7

            
	
              Section
                2.4

            	
              Adjustments
                to Exercise Price; Number of Rights

            	
              9

            
	
              Section
                2.5

            	
              Date
                on Which Exercise is Effective

            	
              10

            
	
              Section
                2.6

            	
              Execution,
                Authentication, Delivery and Dating of Rights Certificates

            	
              10

            
	
              Section
                2.7

            	
              Registration,
                Registration of Transfer and Exchange

            	
              11

            
	
              Section
                2.8

            	
              Mutilated,
                Destroyed, Lost and Stolen Rights Certificates

            	
              11

            
	
              Section
                2.9

            	
              Persons
                Deemed Owners

            	
              12

            
	
              Section
                2.10

            	
              Delivery
                and Cancellation of Certificates

            	
              12

            
	
              Section
                2.11

            	
              Agreement
                of Rights Holders

            	
              13

            
	 	 	 
	
              Article
                III

            
	
              ADJUSTMENTS
                TO THE RIGHTS IN THE EVENT OF

            
	
              CERTAIN
                TRANSACTIONS

            
	 	 	 
	
              Section
                3.1

            	
              Flip-in

            	
              13

            
	
              Section
                3.2

            	
              Flip-over

            	
              15

            
	 	 	 
	
              Article
                IV

            
	
              THE
                RIGHTS AGENT

            
	 	 	 
	
              Section
                4.1

            	
              General

            	
              16

            
	
              Section
                4.2

            	
              Merger
                or Consolidation or Change of Name of Rights Agent

            	
              16

            
	
              Section
                4.3

            	
              Duties
                of Rights Agent

            	
              17

            
	
              Section
                4.4

            	
              Change
                of Rights Agent

            	
              18

            
	 	 	 
	
              Article
                V

            
	
              MISCELLANEOUS

            
	 	 	 
	
              Section
                5.1

            	
              Redemption

            	
              19

            
	
              Section
                5.2

            	
              Expiration

            	
              19

            
	
              Section
                5.3

            	
              Issuance
                of New Rights Certificates

            	
              20

            
	
              Section
                5.4

            	
              Supplements
                and Amendments

            	
              20

            

    

     

    
      
        
        

      

      
        -i-

        
          

        

      

       

    

    

    
      	
              Section
                5.5

            	
              Fractional
                Shares

            	
              20

            
	
              Section
                5.6

            	
              Rights
                of Action

            	
              20

            
	
              Section
                5.7

            	
              Holder
                of Rights Not Deemed a Stockholder

            	
              21

            
	
              Section
                5.8

            	
              Notice
                of Proposed Actions

            	
              21

            
	
              Section
                5.9

            	
              Notices

            	
              21

            
	
              Section
                5.10

            	
              Suspension
                of Exercisability

            	
              22

            
	
              Section
                5.11

            	
              Costs
                of Enforcement

            	
              22

            
	
              Section
                5.12

            	
              Successors

            	
              22

            
	
              Section
                5.13

            	
              Benefits
                of this Agreement

            	
              22

            
	
              Section
                5.14

            	
              Determination
                and Actions by the Board of Directors, etc.

            	
              22

            
	
              Section
                5.15

            	
              Descriptive
                Headings

            	
              23

            
	
              Section
                5.16

            	
              Governing
                Law

            	
              23

            
	
              Section
                5.17

            	
              Counterparts

            	
              23

            
	
              Section
                5.18

            	
              Severability

            	
              23

            
	 	 	 
	
              EXHIBITS

            
	 	 	 
	
              Exhibit
                A

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

            	 
	 	 	 
	
              Exhibit
                B

            	
              Form
                of Certificate of Designations and Terms of Series A Participating
                Preferred Stock of Wilshire Enterprises, Inc.

            	 

    

     

    
      
        
        

      

      
        -ii-

        
          

        

      

       

    

    AMENDED
      AND RESTATED

    STOCKHOLDER
      PROTECTION RIGHTS AGREEMENT

    

    AMENDED
      AND RESTATED STOCKHOLDER PROTECTION RIGHTS AGREEMENT (as it may be amended
      from
      time to time, this “Agreement”), dated as of December 6, 2006, between WILSHIRE
      ENTERPRISES, INC., a Delaware corporation (the “Company”), and Continental Stock
      Transfer & Trust Company, a limited purpose trust company organized under
      the banking laws of the State of New York, as Rights Agent (the “Rights Agent”,
      which term shall include any successor Rights Agent hereunder). 

    

    WITNESSETH:

    

    WHEREAS,
      the Board of Directors of the Company previously (a) 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 July 6, 1996 (the “Record Time”) and
      (b) as provided in Section 2.4, 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) and, to the extent provided in Section
      5.3, each share of Common Stock issued after the Separation Time; 

    

    WHEREAS,
      each Right entitles the holder thereof, after the Separation Time, to purchase
      securities of the Company (or, in certain cases, of certain other entities)
      pursuant to the terms and subject to the terms and conditions set forth herein;
      

    

    WHEREAS,
      the Company previously appointed the Rights Agent to act on behalf of the
      Company, and the Rights Agent is willing so to act, in connection with the
      issuance, transfer, exchange, replacement and redemption of Rights Certificates
      (as hereinafter defined), the exercise of Rights and other matters referred
      to
      herein; 

    

    WHEREAS,
      the Company entered into a Stockholder Protection Rights Agreement with the
      Rights Agent, dated as of June 21, 1996 (the “Initial Agreement”), to govern the
      administration of the Rights;

    

    WHEREAS,
      the Company entered into an Amended and Restated Stockholder Protection Rights
      Agreement with the Rights Agent, dated as of June 22, 2006, which extended
      the
      term of the Initial Agreement as set forth therein (the “Prior Agreement”);
      and

    

    WHEREAS,
      the Board of Directors of the Company has determined that it is in the best
      interests of the Company and its stockholders to amend the definition of
“Acquiring Person” contained in the Prior Agreement as set forth herein;

    

    NOW
      THEREFORE, in consideration of the premises and the respective agreements set
      forth herein, the parties hereby agree that the Prior Agreement is hereby
      amended and restated in its entirety to provide as follows: 

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    ARTICLE
      I

    CERTAIN
      DEFINITIONS

    

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

    

    “Acquiring
      Person” shall mean any Person who is a 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
      is a Beneficial Owner of shares of Common Stock as of the December 6, 2006
      amendment to this Agreement (the "December 2006 Amendment") unless and until
      such time as such Person shall, after the first public announcement of the
      December 2006 Amendment, become the Beneficial Owner of additional shares of
      Common Stock (in addition to the shares of Common Stock Beneficially Owned
      by
      such Person as of the time of the public announcement of the December 2006
      Amendment), such additional shares representing in excess of 6% of the shares
      of
      Common Stock then outstanding (other than pursuant to a dividend or distribution
      paid or made by the Company on the outstanding Common Stock or pursuant to
      a
      split or subdivision of the outstanding Common Stock), provided, however, that
      no Person shall be deemed an Acquiring Person unless, upon becoming the
      Beneficial Owner of such additional shares of Common Stock, such Person is
      the
      Beneficial Owner of 15% or more of the shares of Common Stock then
      outstanding,
      (ii) who
      is the Beneficial Owner of 15% or more of the outstanding shares of Common
      Stock
      but who (as determined by the Company’s Board of Directors in good faith)
      acquired Beneficial Ownership of shares of Common Stock without any plan or
      intention to seek or affect control of the Company, unless and until such Person
      shall have failed to divest itself, as soon as practicable (as determined by
      the
      Company’s Board of Directors in good faith), of Beneficial Ownership of a
      sufficient number of shares of Common Stock so that such Person would no longer
      otherwise qualify as an “Acquiring Person” or (iii) who Beneficially Owns shares
      of Common Stock consisting solely of one or more of (A) shares of Common Stock
      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), Beneficially Owned by such Option Holder or
      its
      Affiliates or Associates at the time of the grant of such option or
      (C) shares of Common Stock (or securities convertible into, exchangeable
      into or exercisable for Common Stock) acquired by Affiliates or Associates
      of
      such Option Holder after the time of such grant which, in the aggregate, amount
      to less than 1% of the outstanding shares of Common Stock. In addition, the
      Company, any wholly-owned Subsidiary of the Company and any employee stock
      ownership or other employee benefit plan of the Company or a wholly-owned
      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 under the Exchange Act, as such Rule was in effect on June 21, 1996.
      

    

    A
      Person
      shall be deemed the “Beneficial Owner”, and to have “Beneficial Ownership” of,
      and to “Beneficially Own”, any securities as to which such Person or any of such
      Person’s Affiliates or Associates is or may be deemed to be the beneficial owner
      of pursuant to Rule 13d-3 and 13d-5 under the Exchange Act, as such Rules were
      in effect on June 21, 1996 as well as any securities as to which such Person
      or
      any of such Person’s Affiliates or Associates has the right to become Beneficial
      Owner (whether such right is exercisable immediately or only after the passage
      of time or the occurrence of conditions) pursuant to any agreement, arrangement
      or understanding, or upon the exercise of conversion rights, exchange rights,
      rights (other than the Rights), warrants or options, or otherwise; provided,
      however, that a Person shall not be deemed the “Beneficial Owner”, or to have
“Beneficial Ownership” of, or to “Beneficially Own”, any security (i) 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 (ii) 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 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 rules and regulations under the Exchange Act, except if such power
      (or the arrangements relating thereto) is then reportable under Item 6 of
      Schedule 13D under the Exchange Act. Notwithstanding the foregoing, no officer
      or director of the Company shall be deemed to Beneficially Own any securities
      of
      any other Person by virtue of any actions 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 outstanding. 

    
      
        
        

      

      
        -2-

        
          

        

      

       

    

    

    “Business
      Day” shall mean any day other than a Saturday, Sunday or a day on which banking
      institutions in the City of New York are generally 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 $1.00 per share, of the
      Company. 

    

    “Control”
      shall have the meaning set forth in the definition of “Flip-over Transaction or
      Event” set forth in this Section 1.1. 

    

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

    

    “Exchange
      Act” shall mean the Securities Exchange Act of 1934 as amended from time to time
      or any federal statute from time to time in effect that has replaced such
      statute. Any reference in this Agreement to a provision of the Exchange Act
      or a
      rule or regulation promulgated thereunder shall mean, unless otherwise
      specified, such provision, rule or regulation as amended from time to time
      or
      any provision of a federal law, or any federal rule or regulation from time
      to
      time in effect that has replaced such provision, rule or regulation.

    

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

    
      
        
        

      

      
        -3-

        
          

        

      

       

    

    

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

    

    “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 $25.00.
      

    

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

    

    “Expiration
      Time” shall mean the earliest of (i) the Exchange Time, (ii) the Redemption
      Time, (iii) the effective time of a consolidation, merger or share exchange
      (each a “Business Combination”) of the Company into another entity pursuant to
      an agreement entered into prior to a Flip-in Date, (iv) the close of business
      on
      August 31, 2007, unless the Independent Directors determine at a meeting to
      be
      held within 30 days prior to August 31, 2007, that this Agreement continues
      to
      be in the best interests of the Company and its stockholders, (v) the close
      of
      business on August 31, 2008, unless the stockholders of the Company approve
      this
      Agreement at the Company’s 2008 annual meeting of stockholders and (vi) the
      close of business on August 31, 2010. 

    

    “Flip-in
      Date” shall mean the first date that an Acquiring Person has become such.

    

    “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
      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 assets or earning power being
      transferred in such Flip-over Transaction or Event, provided in all cases if
      such Person is a Subsidiary of a corporation, the ultimate parent corporation
      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 direction of the business and affairs) of the
      Flip-Over Entity. 

    

    “Flip-over
      Transaction or Event” shall mean a transaction or series of transactions after a
      Flip-in Date in which, directly or indirectly, (i) the Company shall consolidate
      or merge or participate in a binding share exchange with any other Person if,
      at
      the time of the consolidation, merger or share exchange or at the time the
      Company enters into any agreement with respect to any such consolidation, merger
      or share exchange, the Acquiring Person Controls the Board of Directors of
      the
      Company and either (A) any term of any agreement or arrangement concerning
      the
      treatment of shares of capital stock in such consolidation, merger or 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 an 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, 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 which are Affiliates
      or Associates or 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 controls the Board of Directors
      of
      the Company. An Acquiring Person shall be deemed to “Control” the Company’s
      Board of Directors when, following a Flip-in Date, the Persons who were
      directors of the Company before the Flip-in Date shall cease to constitute
      a
      majority of the Company’s Board of Directors. 

    
      
        
        

      

      
        -4-

        
          

        

      

       

    

    

    “holder”
      shall have the meaning set forth in Section 2.9 hereof. 

    

    “Independent
      Directors” shall mean those members of the Board of Directors of the Company who
      constitute “independent directors” as defined in the American Stock Exchange’s
      Corporate Governance Rules as in effect from time to time.

    

    “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 such date; provided, however, that if an
      event
      of a type analogous to any of the events described in Section 2.4 hereof 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 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 ask
      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 or admitted to trading on the American Stock Exchange,
      or,
      if the securities are not listed or admitted to trading on the American Stock
      Exchange, as reported in the principal consolidated transaction reporting system
      with respect to securities listed on the principal national securities exchange
      on which the 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 the National Association of Securities Dealers Automated Quotation
      System or such other 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 organization, the average of the closing bid and ask prices
      as furnished by a professional market maker making a market in the securities
      selected by the Board of Directors of the Company; 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 of the Company, after consultation with a nationally recognized
      investment banking firm, and set forth in a certificate delivered to the Rights
      Agent. 

    
      
        
        

      

      
        -5-

        
          

        

      

       

    

     

    “Person”
      shall mean any individual, firm, partnership, association, group (as such term
      is used in Rule 13d-5 under the Exchange Act, as such Rule was in effect on
      June
      21, 1996), company, corporation or other entity. 

    

    “Preferred
      Stock” shall mean the series of Series A Participating Preferred Stock, par
      value $1.00 per share, of the Company created by a Certificate of Designations
      and Terms in substantially the form set forth in Exhibit B. 

    

    “Redemption
      Price” shall mean an amount equal to one cent, $0.01. 

    

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

    

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

    

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

    

    “Separation
      Time” shall mean the close of business on the earlier of (i) the tenth business
      day (or such later date as the Board of Directors of the Company may from time
      to time fix by resolution adopted prior to any Separation Time that would
      otherwise have occurred) after the date on which any Person commences a tender
      or exchange offer which, if consummated, would result in such Person’s becoming
      an Acquiring Person and (ii) the Flip-in Date; provided that if any tender
      or
      exchange offer referred to in clause (i) of this paragraph is canceled,
      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. 

    

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

    

    “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 interest is Beneficially Owned, directly or indirectly, by such Person.
      

    

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

    
      
        
        

      

      
        -6-

        
          

        

      

       

    

    

    ARTICLE
      II

    THE
      RIGHTS

    

    2.1 Summary
      of Rights.
      As soon
      as practicable after the Record Time, the Company mailed a letter summarizing
      the terms of the Rights to each holder of record of Common Stock as of the
      Record Time, at such holder’s address as shown by the records of the Company.
      Rights shall be issued in respect of all shares of Common Stock issued or
      disposed of (including, without limitation, upon disposition of Common Stock
      out
      of treasury stock or issuance or reissuance of Common Stock out of authorized
      but unissued shares) after the Record Time but prior to the earlier of the
      Separation Time or the Expiration Time. In the event that the Company purchases
      or otherwise acquires Common Stock after the Record Time but prior to the
      Separation Time, the Rights associated with such Common Stock shall be deemed
      canceled and retired so that the Company shall not be entitled to exercise
      any
      Rights associated with the shares of Common Stock which are no longer
      outstanding.

    

    2.2 Legend
      on Common Stock Certificates.
      Certificates for the Common Stock issued after the Record Time but prior to
      the
      Separation Time shall evidence one Right for each share of Common Stock
      represented thereby and shall have impressed on, printed on, written on or
      otherwise affixed to them 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 an Amended and Restated Rights Agreement, dated as of December
      6,
      2006 (as such may be amended from time to time, the “Rights Agreement”), between
      Wilshire Enterprises, Inc. (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 another entity, may be exchanged for shares of Common
      Stock or other securities or assets of the Company, may expire, may become
      void
      (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 within five days after the
      receipt of a written request therefor. 

    

    Certificates
      representing shares of Common Stock that are issued and outstanding at the
      date
      hereof shall evidence one Right for each share of Common Stock evidenced thereby
      notwithstanding the absence of the foregoing legend. 

    

    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, after the Separation Time
      and
      prior to the Expiration Time, to purchase, for the Exercise Price, one
      one-hundredth (1/100) of a share of Preferred Stock. 

    
      
        
        

      

      
        -7-

        
          

        

      

       

    

    

    (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 (together,
      in the case of certificates issued prior to the Record Time, with the letter
      mailed to the record holder thereof pursuant to Section 2.1) and will be
      transferable only together with, and will be transferred by a transfer (whether
      with or without such letter) of, such associated share of Common Stock.

    

    (c) Subject
      to the terms and conditions hereof, after the Separation Time and prior to
      the
      Expiration Time, the Rights (i) may be exercised and (ii) may be transferred
      independently of shares of Common Stock. Promptly following the Separation
      Time,
      the Rights Agent will mail to each holder of record of Common Stock as of the
      Separation Time (other than any Person whose Rights have become void pursuant
      to
      Section 3.1(b)), at such holder’s address as shown on the books and records of
      the Company (the Company hereby agreeing 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
      shall
      not be inconsistent with the provisions of this Agreement, 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 Rights may from time to time be listed or traded, or to
      conform to usage, and (y) a disclosure statement describing the Rights.

    

    (d) Subject
      to the terms and conditions hereof, Rights may be exercised on any Business
      Day
      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 completed, accompanied by payment in cash, or by
      certified or official bank check or money order 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 transfer tax or charge which
      may be payable in respect of any transfer involved in the transfer or delivery
      of Rights Certificates or the issuance or delivery of certificates for shares
      or
      depositary receipts (or both) in a name other than that of the holder of the
      Rights being exercised. 

    

    (e) Upon
      receipt of a Rights Certificate, with an 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 a
      transfer agent stock certificates evidencing such number of shares or other
      securities to be purchased (the Company hereby irrevocably authorizing its
      transfer agents to comply with all such requisitions) and (B) if the Company
      elects pursuant to Section 5.5 not to issue certificates representing fractional
      shares, requisition from the depositary selected by the Company depositary
      receipts representing the fractional shares to be purchased or requisition
      from
      the Company the amount of cash to be paid in lieu of fractional shares in
      accordance with Section 5.5 and (ii) after receipt of such certificates,
      depositary receipts and/or cash, deliver the same to or upon the order of the
      registered holder of such Rights Certificate, registered (in the case of
      certificates or depositary receipts) in such name or names as may be designated
      by such holder. 

    
      
        
        

      

      
        -8-

        
          

        

      

       

    

    

    (f) In
      case
      the holder of any Rights shall exercise less than all 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 upon exercise of Rights shall,
      at
      the time of delivery of the certificates for such shares (subject to payment
      of
      the Exercise Price), be duly and validly authorized, executed, issued and
      delivered 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 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
      federal and state transfer taxes and charges which 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 transfer tax or charge which may be payable in respect
      of
      any transfer involved in the transfer or delivery of Rights Certificates or
      the
      issuance or delivery of certificates for shares in a name other than that of
      the
      holder of the Rights being transferred or exercised. 

    

    2.4 Adjustments
      to Exercise Price; Number of Rights.
      (a) In
      the event the Company shall at any time after the Record Time and prior to
      the
      Separation Time (i) declare or pay a dividend on 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 (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 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. To the extent
      provided in Section 5.3, 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. 

    
      
        
        

      

      
        -9-

        
          

        

      

       

    

    

    (b) In
      the
      event 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 Common Stock (other than pursuant to a regular
      periodic cash dividend or a dividend paid solely in Common Stock) whether by
      dividend, in a reclassification or recapitalization (including any such
      transaction involving a merger, consolidation or 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 of the Company, 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.
      

    

    (c) Each
      adjustment to the Exercise Price made pursuant to this Section 2.4 shall be
      calculated to the nearest whole 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 each transfer agent for the Common Stock a copy of such
      certificate. 

    

    (d) Rights
      Certificates shall represent 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 securities is issued upon the exercise
      of Rights shall for all purposes be deemed to have become the holder of record
      of the securities represented thereby on, and such certificate shall be dated,
      the date upon which the Rights Certificate evidencing such Rights was duly
      surrendered and payment of the 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 securities
      on, and such certificate 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 Chairman of the Board, President, Treasurer or one of its Vice
      Presidents, under its corporate seal reproduced thereon attested 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.
      

    
      
        
        

      

      
        -10-

        
          

        

      

       

    

    

    Promptly
      after the Separation Time, the Company will notify the Rights Agent of such
      Separation Time 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 manually countersign and deliver such Rights Certificates
      to
      the holders of the Rights pursuant to Section 2.3(c) hereof. No Rights
      Certificate shall be valid for any purpose unless manually countersigned by
      the
      Rights Agent. 

    

    (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. 

    

    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 Section 2.7(c) and (d), the Company will execute, and the
      Rights Agent will countersign and 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 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.
      

    

    (d) The
      Company shall not be required to register the transfer or exchange of any Rights
      after such Rights have become void under Section 3.1(b), been exchanged under
      Section 3.1(c) or been redeemed under Section 5.1. 

    

    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. 

    
      
        
        

      

      
        -11-

        
          

        

      

       

    

    

    (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 save 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 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 request the Rights Agent
      shall
      countersign and 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 mutilated,
      destroyed, lost or stolen Rights Certificate shall evidence an original
      additional contractual obligation of the Company, whether or not the mutilated,
      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) 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) 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 canceled
      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 which the Company may have acquired in any manner whatsoever, and
      all
      Rights Certificates so delivered shall be promptly canceled by the Rights Agent.
      No Rights Certificates shall be countersigned in lieu of or in exchange for
      any
      Rights Certificates canceled as provided in this Section 2.10, except as
      expressly permitted by this Agreement. The Rights Agent shall destroy all
      canceled Rights Certificates and deliver a certificate of destruction to the
      Company. 

    
      
        
        

      

      
        -12-

        
          

        

      

       

    

    

    2.11 Agreement
      of Rights Holders.
      Every
      holder of Rights, by accepting the same, 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) 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) 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) 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
      Beneficially Owned by certain Persons will, under the circumstances set forth
      in
      Section 3.1(b), become void; and 

    

    (e) this
      Agreement may be supplemented or amended from time to time pursuant to Section
      2.4(b) or 5.4 hereof. 

    

    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 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 Flip-in Date equal to twice the Exercise
      Price for an amount in cash 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 Flip-in Date an event of
      a
      type analogous to any of the events described in Section 2.4(a) or (b) shall
      have occurred with respect to the Common Stock). 

    

    (b) Notwithstanding
      the foregoing, any Rights that are or were Beneficially Owned on or after the
      Flip-in Date by an Acquiring Person or an Affiliate or Associate thereof or
      by
      any transferee, direct or indirect, of any of the foregoing shall become void
      and any holder of such Rights (including transferees) 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 notice of election to exercise and provide such
      additional evidence of the identity of the Beneficial Owner and its Affiliates
      and Associates (or former Beneficial Owners and their Affiliates and Associates)
      as the Company shall reasonably request, then the Company shall be entitled
      conclusively to deem the Beneficial Owner thereof to be 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 void and not
      transferable or exercisable. 

    
      
        
        

      

      
        -13-

        
          

        

      

       

    

    

    (c) The
      Board
      of Directors of the Company may, at its option, at any time after a Flip-in
      Date
      and prior to the time that an Acquiring 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) the then outstanding Rights (which shall not include
      Rights that have become 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 an event of a
      type
      analogous to any of the events described in Section 2.4(a) or (b) 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”).

    

    Immediately
      upon the action of the Board of Directors of the Company 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 void pursuant to Section 3.1(b)) will thereafter represent only the
      right
      to receive a number of shares of Common Stock equal to the Exchange Ratio.
      Promptly after the action of the Board of Directors electing to exchange the
      Rights, the Company shall give 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 void pursuant
      to Section 3.1(b)) outstanding immediately prior thereto by mailing such notice
      in accordance with Section 5.9. 

    

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

    

    (d) Whenever
      the Company shall become obligated under Section 3.1(a) or (c) to issue shares
      of Common Stock upon exercise of or in exchange for Rights, the Company, at
      its
      option, may substitute therefor shares of Preferred Stock, at a ratio of one
      one-hundredth (1/100) of a share of Preferred Stock for each share of Common
      Stock so issuable. 

    

    (e) In
      the
      event that there shall not be sufficient treasury shares or authorized but
      unissued shares of Common Stock or Preferred Stock of the Company to permit
      the
      exercise or exchange in full of the Rights in accordance with Section 3.1(a)
      or
      (c), and the Company elects not to, or is otherwise unable to, make the exchange
      referred to in Section 3.1(d), 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, to the extent permitted
      by
      applicable law and any agreements or instruments in effect on the Stock
      Acquisition Date to which it is a party, that each Right shall thereafter
      constitute the right to receive, (x) at the Company’s option, 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 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) if the Board of
      Directors of the Company elects to exchange the 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 times the Exchange Ratio in effect on the
      Flip-in Date, where in any case set forth in (x) or (y) above the fair value
      of
      such debt or equity securities or other assets shall be as determined in good
      faith by the Board of Directors of the Company, after consultation with a
      nationally recognized investment banking firm. 

    
      
        
        

      

      
        -14-

        
          

        

      

       

    

    

    (f) The
      Company agrees that after the Flip-in Date and prior to the Expiration Time,
      it
      shall not, unless the Rights are exchanged pursuant to this Section 3.1 or
      redeemed pursuant to Section 5.1, take any action if at the time such action
      is
      taken it is reasonably foreseeable that such action will diminish substantially
      or eliminate the benefits intended to be afforded by the Rights.

    

    3.2 Flip-over.
      (a)
      Prior to the Expiration Time, unless the Rights have been redeemed pursuant
      to
      Section 5.1 hereof in connection therewith, 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, 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 an
      amount in cash 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 an event of a
      type
      analogous to any of the events described in Section 2.4(a) or (b) 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. The provisions of this Section
      3.2 shall apply with equal force to successive Flip-over Transactions or Events.
      

    

    (b) Prior
      to
      the Expiration Time, unless the Rights will be redeemed pursuant to Section
      5.1
      hereof in connection therewith, the Company shall not enter into any agreement
      with respect to, consummate or permit to occur any Flip-over Transaction or
      Event if 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. 

    
      
        
        

      

      
        -15-

        
          

        

      

       

    

     

    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 terms and conditions hereof, 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 and on demand of the Rights Agent, its reasonable expenses and counsel
      fees and other disbursements incurred in the administration and execution of
      this Agreement and the exercise and performance of its duties hereunder. The
      Company also agrees to indemnify the Rights Agent for, and to hold it harmless
      against, any loss, liability or expense incurred without negligence, bad faith
      or willful misconduct on the part of the Rights Agent, for anything done or
      omitted to be done by the Rights Agent in connection with the acceptance and
      administration of this Agreement, including the costs and expenses of defending
      against any claim of liability. 

    

    (b) The
      Rights Agent shall be protected and shall incur no liability for or in respect
      of any action taken, suffered to be taken or not taken by it in connection
      with
      its administration of this Agreement in reliance upon any certificate for
      securities 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. 

    

    4.2 Merger
      or Consolidation or Change of Name of Rights Agent.
      (a) Any
      corporation into which the Rights Agent or any successor Rights Agent may be
      merged or with which it may be consolidated, or any corporation resulting from
      any merger or consolidation to which the Rights Agent or any successor Rights
      Agent is a party, or any corporation succeeding to the shareholder 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 corporation would be eligible for appointment as a successor
      Rights Agent under the provisions of Section 4.4 hereof. In case 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 in case 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 provided in
      the
      Rights Certificates and in this Agreement. 

    
      
        
        

      

      
        -16-

        
          

        

      

       

    

    

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

    

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

    

    (a) The
      Rights Agent may consult with legal counsel (who may be legal counsel for the
      Company), and the opinion of such counsel will be full and complete
      authorization and protection to the Rights Agent as to any action taken or
      not
      taken by it in good faith and in accordance with such opinion. 

    

    (b) Whenever
      in the performance of its duties under this Agreement the Rights Agent deems
      it
      necessary or desirable that any fact or matter be proved or established by
      the
      Company prior to taking or suffering to be taken 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 Chairman
      of the Board, the President or any 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
      authorization to the Rights Agent for any action taken or suffered to be taken
      in good faith by it under the provisions of this Agreement in reliance upon
      such
      certificate. 

    

    (c) The
      Rights Agent will be liable hereunder only for its own negligence, bad faith
      or
      willful misconduct. 

    

    (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 for
      securities purchasable upon exercise of Rights or the Rights Certificates
      (except its countersignature thereof) or be required to verify the same, but
      all
      such statements and recitals are and will be deemed to have been made by the
      Company only. 

    

    (e) The
      Rights Agent will not 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 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
      condition contained in this Agreement or in any Rights Certificate; nor will
      it
      be responsible for any change in the exercisability of the Rights (including
      the
      Rights becoming void pursuant to Section 3.1(b) hereof) or any adjustment
      required under the provisions of Section 2.4, 3.1 or 3.2 hereof or responsible
      for the manner, method or amount of any such adjustment or the ascertaining
      of
      the existence of facts that would require any such adjustment (except with
      respect to the exercise of Rights after receipt of the certificate contemplated
      by Section 2.4 describing any such adjustment); 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
      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. 

    
      
        
        

      

      
        -17-

        
          

        

      

       

    

    

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

    

    (g) The
      Rights Agent is hereby authorized and directed to accept instructions with
      respect to the performance of its duties hereunder from any person believed
      by
      the Rights Agent to be the Chairman of the Board, the President, any Vice
      President, 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 it shall not be liable for
      any
      action taken or suffered by it in good faith in accordance with instructions
      of
      any such person. 

    

    (h) The
      Rights Agent and any stockholder, director, officer or employee of the Rights
      Agent 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 from acting in any other capacity
      for the Company or for any other legal entity. 

    

    (i) The
      Rights Agent may execute and exercise any of the rights or powers hereby vested
      in it or perform any duty hereunder either itself or by or through its attorneys
      or agents, and the Rights Agent 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 resulting from any such act, default, neglect or misconduct,
      provided reasonable care was exercised in the selection and continued employment
      thereof. 

    

    4.4 Change
      of Rights Agent.
      The
      Rights Agent may resign and be discharged from its duties under this Agreement
      upon 90 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 by
      registered or certified mail, and, following the Separation Time, 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 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 may apply to any court of competent
      jurisdiction for the appointment of a new Rights Agent. Any successor Rights
      Agent, whether appointed by the Company or by such a court, shall be a
      corporation organized and doing business under the laws of the United States
      or
      of 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 and which has at the time of its appointment as Rights Agent a
      combined capital and surplus of at least $50,000,000. 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; but the predecessor Rights Agent shall deliver and transfer
      to the successor Rights Agent any property at the time held by it hereunder,
      and
      execute and deliver any further assurance, conveyance, act or deed necessary
      for
      the purpose. Not later than the effective date of any such appointment, the
      Company will file notice thereof in writing with the predecessor Rights Agent
      and each transfer agent of the Common Stock, and, following the Separation
      Time,
      mail a notice thereof in writing to the holders of the Rights. 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. No resignation or removal of the Rights Agent shall be effective until
      a
      successor Rights Agent is appointed in accordance with this Section 4.4.

    
      
        
        

      

      
        -18-

        
          

        

      

       

    

     

    ARTICLE
      V

    MISCELLANEOUS

    

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

    

    (b) Immediately
      upon the action of the Board of Directors of the Company electing to redeem
      the
      Rights (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 will thereafter represent only the
      right to receive the Redemption Price in cash or 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 are exchanged or redeemed, as provided
      in
      Section 3.1 or 5.1 hereof. 

    
      
        
        

      

      
        -19-

        
          

        

      

       

    

    

    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 its 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 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, 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. 

    

    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 Flip-in
      Date, in any respect and (ii) after the Flip-in Date, to make any changes that
      the Company may deem necessary or desirable and which shall not materially
      adversely affect the interests of the holders of Rights generally or in order
      to
      cure any ambiguity or to correct or supplement any provision contained herein
      which may be inconsistent with any other provisions herein or otherwise
      defective. The Rights Agent will duly execute and deliver any supplement or
      amendment hereto requested by the Company which satisfies the terms of the
      preceding sentence. 

    

    5.5 Fractional
      Shares.
      If the
      Company elects not to issue certificates representing fractional shares upon
      exercise or redemption 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) sell such shares on behalf of the holders of Rights and pay to
      the
      registered holder of such Rights the appropriate fraction of the price per
      share
      received upon such sale. 

    

    5.6 Rights
      of Action.
      Subject
      to the terms of this Agreement (including Section 3.1(b)), rights of action
      in
      respect of this Agreement, other than rights of action vested solely in the
      Rights Agent, 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. 

    
      
        
        

      

      
        -20-

        
          

        

      

       

    

    

    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 the holder of shares or any other securities which
      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 hereof), 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 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 hereof, a 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 twenty
      (20) Business Days prior to 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 first-class mail, postage
      prepaid, addressed (until another address is filed in writing with the Rights
      Agent) as follows: 

    

    Wilshire
      Enterprises, Inc. 

    1
      Gateway
      Center

    Newark,
      New Jersey 07102

    

    Attention:
      S. Wilzig Izak 

    

    with
      a
      copy to: 

    

    Peter
      H.
      Ehrenberg, Esq.

    Lowenstein
      Sandler PC

    65
      Livingston Avenue

    Roseland,
      New Jersey 07068

    
      
        
        

      

      
        -21-

        
          

        

      

       

    

    

    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 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,
      New York 10004 

    

    Attention:
      Chairman

    

    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 which
      is mailed in the manner herein provided shall be deemed given, whether or not
      the holder receives the notice. 

    

    5.10 Suspension
      of Exercisability.
      To the
      extent that the Company determines in good faith that some action will or need
      be taken pursuant to Section 3.1 or to comply with federal or state securities
      laws, the Company may suspend the exercisability of the Rights for a reasonable
      period in order to take such action or comply with such laws. In the event
      of
      any such suspension, the Company shall issue as promptly as practicable a public
      announcement stating that the exercisability or exchangeability of the Rights
      has been temporarily suspended. Notice thereof pursuant to Section 5.9 shall
      not
      be required. 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; but this Agreement shall be for
      the
      sole and exclusive benefit of the Company, the Rights Agent and the holders
      of
      the Rights. 

    

    5.14 Determination
      and Actions by the Board of Directors, etc.
      The
      Board of Directors of the Company shall have the exclusive power and authority
      to administer this Agreement and to exercise all rights and powers specifically
      granted to the Board or to the Company, or as may be necessary or advisable
      in
      the administration of this Agreement, including, without limitation, the right
      and power to (i) interpret the provisions of this Agreement and (ii) make all
      determinations deemed necessary or advisable for the administration of this
      Agreement. All such actions, calculations, interpretations and determinations
      which are done or made by the Board in good faith shall be final, conclusive
      and
      binding on the Company, the Rights Agent, the holders of the Rights and all
      other parties. 

    
      
        
        

      

      
        -22-

        
          

        

      

       

    

    

    5.15 Descriptive
      Headings.
      Descriptive headings appear herein for convenience only and shall not control
      or
      affect the meaning or construction of any of the provisions hereof.

    

    5.16 Governing
      Law.
      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. 

    

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

    

    

    5.18 Severability.
      If any
      term or provision hereof or the application thereof to any circumstance shall,
      in any jurisdiction and to any extent, be invalid or unenforceable, such term
      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 and provisions hereof or the application of such term or
      provision to circumstances other than those as to which it is held invalid
      or
      unenforceable. 

    

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

    
      	 	 	 
	 	
              WILSHIRE
                ENTERPRISES, INC.

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Francis J. Elenio
	 	
              
                

              

              Name:
                Francis J. Elenio

              Title:
                Senior
                Vice President
                and Chief Financial
                Officer

            

    

    
      
        
        

      

      
        -23-

        
          

        

      

       

    

    
      	 	 	 
	 	
              
                CONTINENTAL
                  STOCK TRANSFER & TRUST COMPANY

              

            
	 
 	 
 	 
 
	
            	By:  	/s/
              R.
              Bernhammer    
	 	
              
                

              

              
                Name:
                  R. Bernhammer 

                Title:
                  Vice President

              

            

    

     

    
      
        
        

      

      
        -24-

        
          

        

      

       

    

    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 VOID.

    

    Rights
      Certificate

    

    WILSHIRE
      ENTERPRISES, INC.

    

    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 Amended and Restated Stockholder Protection Rights Agreement, dated as
      of
      December 6, 2006 (as amended from time to time, the “Rights Agreement”), between
      Wilshire Enterprises, Inc., a Delaware corporation (the “Company”), and
      Continental Stock Transfer & Trust Company, a limited purpose trust company
      organized under the banking laws of the State of New York, 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 defined in the Rights Agreement), one one-hundredth (1/100)
      of a fully paid share of Series A Participating Preferred Stock, par value
      $1.00
      per share (the “Preferred 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 at the principal office of the Rights Agent in New
      York, New York. The Exercise Price shall initially be $25.00 per Right and
      shall
      be subject to adjustment in certain events as provided in the Rights Agreement.
      

    

    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 or assets of the Company other
      than
      Preferred Stock, 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 executive offices of the
      Company and are available without cost upon written request. 

    
      
        
        

      

      
        -1-

        
          

        

      

       

    

    

    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 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 $0.01 per Right or (b) exchanged by the
      Company under certain circumstances, at its option, for one share of Common
      Stock or one one-hundredth (1/100) of a share of Preferred 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 which may
      at
      any time be issuable on the exercise hereof, nor shall anything contained in
      the
      Rights Agreement or herein be construed to confer upon the holder hereof, as
      such, any of the rights of a stockholder of the Company or any right to vote
      for
      the election of directors or upon any matter submitted to stockholders at any
      meeting thereof, or to give or withhold consent to any corporate action, or
      to
      receive notice of meetings or other actions affecting stockholders (except
      as
      provided in the Rights Agreement), or to receive dividends or subscription
      rights, or otherwise, until the 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 by the Rights Agent.

    

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

    

    Date:
      ____________ 

     

    
      	
              ATTEST: 

            	 	 	WILSHIRE
              ENTERPRISES, INC.
	
            	 	 	
            
	 	 	 	 
	
               

              
                

              

              Secretary
                or Assistant Secretary 

                 

                Countersigned:
                  

                 

                
                  CONTINENTAL
                    STOCK TRANSFER & TRUST COMPANY 

                   

                  By:

                  
                    
Authorized
                    Signature  

                

              

            	 	
              By:

              
                

              

              Name:

              Title:

            

    

    
      
        
        

      

      
        -2-

        
          

        

      

       

    

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

    

    Dated:
      _______________, 20__ 

    

    
      	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 Securities Transfer Association
      recognized signature program. 

    

    (To
      be
      completed if true)

    

    The
      undersigned hereby represents, for the benefit of 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 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 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 void and not transferable or
      exercisable. 

    
      
        
        

      

      
        -3-

        
          

        

      

       

    

    [To
      be
      attached to each Rights Certificate]

    

    FORM
      OF ELECTION TO EXERCISE

    

    (To
      be
      executed if holder desires to

    exercise
      the Rights Certificate.)

    

    TO:
      WILSHIRE ENTERPRISES, INC. 

    

    The
      undersigned hereby irrevocably elects to exercise _______________________ whole
      Rights represented by the attached Rights Certificate to purchase the shares
      of
      Series A Participating Preferred Stock issuable upon the exercise of such Rights
      and requests that certificates for such shares be issued in the name of:

    
      	
            	 	 	
            
	
              

              Name

               

              
                

                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: 

    
      	
            	 	 	
            
	
              

              Name

               

              
                

                Address

                 

                
                  

                

              
Social Security or Other Taxpayer Identification
              Number	 	 	
            

    

     

    Dated:
      _______________, 20__ 

     

    
      

      
        	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 Securities Transfer Association
      recognized signature program. 

    
      
        
        

      

      
        -4-

        
          

        

      

       

    

     

    (To
      be
      completed if true)

    

    The
      undersigned hereby represents, for the benefit of 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 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 void and not transferable or
      exercisable. 

    
      
        
        

      

      
        -5-

        
          

        

      

       

    

    EXHIBIT
      B

    

    FORM
      OF CERTIFICATE OF DESIGNATIONS AND TERMS

    OF
      SERIES A PARTICIPATING PREFERRED STOCK

    OF
      WILSHIRE ENTERPRISES, INC.

    

    Pursuant
      to Section 151 of the General

    Corporation
      Law of the State of Delaware

    

    Wilshire
      Enterprises, Inc., a Delaware corporation (the “Corporation”), does hereby
      certify as follows: 

    

    Pursuant
      to authority granted by Article FOURTH of the Restated Certificate of
      Incorporation of the Corporation, as amended, and in accordance with the
      provisions of Section 151 of the General Corporation Law of the State of
      Delaware, the Board of Directors of the Corporation has adopted the following
      resolutions fixing the designation and certain terms, powers, preferences and
      other rights of a new series of the Corporation’s Preferred Stock, par value
      $1.00 per share, and certain qualifications, limitations and restrictions
      thereon: 

    

    RESOLVED,
      that there is hereby established a series of Preferred Stock, par value $1.00
      per share, of the Corporation, and the designation and certain terms, powers,
      preferences and other rights of the shares of such series, and certain
      qualifications, limitations and restrictions thereon, are hereby fixed as
      follows: 

    

    (i) The
      distinctive serial designation of this series shall be “Series A Participating
      Preferred Stock” (hereinafter called “this Series”). Each share of this Series
      shall be identical in all respects with the other shares of this Series except
      as to the dates from and after which dividends thereon shall be cumulative.
      

    

    (ii) The
      number of shares in this Series shall initially be 375,000 which number may
      from
      time to time be increased or decreased (but not below the number then
      outstanding) by the Board of Directors. Shares of this Series purchased by
      the
      Corporation shall be canceled and shall revert to authorized but unissued shares
      of Preferred Stock undesignated as to series. Shares of this Series may be
      issued in fractional shares, which fractional shares shall entitle the holder,
      in proportion to such holder’s fractional share, to all rights of a holder of a
      whole share of this Series. 

    

    (iii) The
      holders of full or fractional shares of this Series shall be entitled to
      receive, when and as declared by the Board of Directors, but only out of funds
      legally available therefor, dividends, (A) on each date that dividends or other
      distributions (other than dividends or distributions payable in Common Stock
      of
      the Corporation) are payable on or in respect of Common Stock comprising part
      of
      the Reference Package (as defined below), in an amount per whole share of this
      Series equal to the aggregate amount of dividends or other distributions (other
      than dividends or distributions payable in Common Stock of the Corporation)
      that
      would be payable on such date to a holder of the Reference Package and (B)
      on
      the last day of March, June, September and December in each year, in an amount
      per whole share of this Series equal to the excess (if any) of $6.25 over the
      aggregate dividends paid per whole share of this Series during the three month
      period ending on such last day. Each such dividend shall be paid to the holders
      of record of shares of this Series on the date, not exceeding sixty days
      preceding such dividend or distribution payment date, fixed for the purpose
      by
      the Board of Directors in advance of payment of each particular dividend or
      distribution. Dividends on each full and each fractional share of this Series
      shall be cumulative from the date such full or fractional share is originally
      issued; provided, that any such full or fractional share originally issued
      after
      a dividend record date and on or prior to the dividend payment date to which
      such record date relates shall not be entitled to receive the dividend payable
      on such dividend payment date or any amount in respect of the period from such
      original issuance to such dividend payment date. 

    
      
        
        

      

      
        -1-

        
          

        

      

       

    

    

    The
      term
“Reference Package” shall initially mean 100 shares of Common Stock, par value
      $1.00 per share (“Common Stock”), of the Corporation. In the event the
      Corporation shall at any time after the close of business on June 22, 2006
      (A)
      declare or pay a dividend on any Common Stock payable in Common Stock, (B)
      subdivide any Common Stock or (C) combine any Common Stock into a smaller
      number of shares, then and in each such case the Reference Package after such
      event shall be the Common Stock that a holder of the Reference Package
      immediately prior to such event would hold thereafter as a result thereof.
      

    

    Holders
      of shares of this Series shall not be entitled to any dividends, whether payable
      in cash, property or stock, in excess of full cumulative dividends, as herein
      provided on this Series. 

    

    So
      long
      as any shares of this Series are outstanding, no dividend (other than a dividend
      in Common Stock or in any other stock ranking junior to this Series as to
      dividends and upon liquidation) shall be declared or paid or set aside for
      payment or other distribution declared or made upon the Common Stock or upon
      any
      other stock ranking junior to this Series as to dividends or upon liquidation,
      nor shall any Common Stock nor any other stock of the Corporation ranking junior
      to or on a parity with this Series as to dividends or upon liquidation be
      redeemed, purchased or otherwise acquired for any consideration (or any moneys
      be paid to or made available for a sinking fund for the redemption of any shares
      of any such stock) by the Corporation (except by conversion into or exchange
      for
      stock of the Corporation ranking junior to this Series as to dividends and
      upon
      liquidation), unless, in each case, the full cumulative dividends (including
      the
      dividend to be due upon payment of such dividend, distribution, redemption,
      purchase or other acquisition) on all outstanding shares of this Series shall
      have been, or shall contemporaneously be, paid. 

    

    (iv) In
      the
      event of any merger, consolidation, reclassification or other transaction in
      which the shares of Common Stock are exchanged for or changed into other stock
      or securities, cash and/or any other property, then in any such case the shares
      of this Series shall at the same time be similarly exchanged or changed in
      an
      amount per whole share equal to the aggregate amount of stock, securities,
      cash
      and/or any other property (payable in kind), as the case may be, that a holder
      of the Reference Package would be entitled to receive as a result of such
      transaction. 

    
      
        
        

      

      
        -2-

        
          

        

      

       

    

    

    (v) In
      the
      event of any liquidation, dissolution or winding up of the affairs of the
      Corporation, whether voluntary or involuntary, the holders of full and
      fractional shares of this Series shall be entitled, before any distribution
      or
      payment is made on any date to the holders of the Common Stock or any other
      stock of the Corporation ranking junior to this Series upon liquidation, to
      be
      paid in full an amount per whole share of this Series equal to the greater
      of
      (A) $2,500.00 or (B) the aggregate amount distributed or to be distributed
      prior to such date in connection with such liquidation, dissolution or winding
      up to a holder of the Reference Package (such greater amount being hereinafter
      referred to as the “Liquidation Preference”), together with accrued dividends to
      such distribution or payment date, whether or not earned or declared. If such
      payment shall have been made in full to all holders of shares of this Series,
      the holders of shares of this Series as such shall have no right or claim to
      any
      of the remaining assets of the Corporation. 

    

    In
      the
      event the assets of the Corporation available for distribution to the holders
      of
      shares of this Series upon any liquidation, dissolution or winding up of the
      Corporation, whether voluntary or involuntary, shall be insufficient to pay
      in
      full all amounts to which such holders are entitled pursuant to the first
      paragraph of this Section (v), no such distribution shall be made on account
      of
      any shares of any other class or series of Preferred Stock ranking on a parity
      with the shares of this Series upon such liquidation, dissolution or winding up
      unless proportionate distributive amounts shall be paid on account of the shares
      of this Series, ratably in proportion to the full distributable amounts for
      which holders of all such parity shares are respectively entitled upon such
      liquidation, dissolution or winding up.

    

    Upon
      the
      liquidation, dissolution or winding up of the Corporation, the holders of shares
      of this Series then outstanding shall be entitled to be paid out of assets
      of
      the Corporation available for distribution to its stockholders all amounts
      to
      which such holders are entitled pursuant to the first paragraph of this Section
      (v) before any payment shall be made to the holders of Common Stock or any
      other
      stock of the Corporation ranking junior upon liquidation to this Series.

    

    For
      the
      purposes of this Section (v), the consolidation or merger of, or binding share
      exchange by, the Corporation with any other corporation shall not be deemed
      to
      constitute a liquidation, dissolution or winding up of the Corporation.

    

    (vi) The
      shares of this Series shall not be redeemable. 

    

    (vii) In
      addition to any other vote or consent of stockholders required by law or by
      the
      Restated Certificate of Incorporation, as amended, of the Corporation, each
      whole share of this Series shall, on any matter, vote as a class with any other
      capital stock comprising part of the Reference Package and voting on such matter
      and shall have one vote per share. 

    

    (viii) The
      Series A Participating Preferred Stock shall rank junior as to the payment
      of
      dividends and amounts upon liquidation, dissolution and winding up to all of
      the
      Corporation’s capital stock except (A) the Common Stock and (B) any other
      capital stock of the Corporation which by its terms ranks junior to the Series
      A
      Participating Preferred Stock as to the payment of dividends or amounts upon
      liquidation, dissolution or winding up. 

    
      
        
        

      

      
        -3-

        
          

        

      

       

    

    

    (ix) Other
      than as set forth herein and as provided by law, the Series A Participating
      Preferred Stock shall not have any other powers, preference or other rights
      or
      privileges. 

    

    IN
      WITNESS WHEREOF, the Corporation has caused this certificate to be duly signed
      by S. Wilzig Izak, its Chairman of the Board and Chief Executive Officer, on
      the
      22nd day of June, 2006. 

    
      	 	 	 
	 	
              WILSHIRE
                ENTERPRISES, INC.

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              
                

              

              S.
                Wilzig Izak

              
                Chairman
                  of the Board and Chief Executive
                  Officer

              

            

    

    
      
        
        

      

      
        -4-

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