Document:

exv10w1

 

EXHIBIT 10.1

GENENTECH, INC.

SUPPLEMENTAL PLAN

(January 1, 2004 Restatement)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	SECTION 1 DEFINITIONS
	 	 	1	 
	 
	SECTION 2 MEMBERSHIP
	 	 	3	 
	 
	2.1 Membership
	 	 	3	 
	2.2 Termination of Membership
	 	 	3	 
	 
	SECTION 3 BENEFITS
	 	 	4	 
	 
	3.1 Benefits
	 	 	4	 
	3.2 Investment Return
	 	 	4	 
	 
	SECTION 4 VESTING
	 	 	4	 
	 
	4.1 Accounts Nonforfeitable
	 	 	4	 
	 
	SECTION 5 DISTRIBUTIONS
	 	 	5	 
	 
	5.1 Distribution
	 	 	5	 
	5.2 Time for Distribution
	 	 	5	 
	5.3 Form of Distribution
	 	 	5	 
	5.4 Beneficiary Designations
	 	 	5	 
	5.5 Payments to Incompetents
	 	 	6	 
	5.6 Undistributable Accounts
	 	 	6	 
	 
	SECTION 6 ADMINISTRATION OF THE PLAN
	 	 	6	 
	 
	6.1 Plan Administrator
	 	 	6	 
	6.2 Committee
	 	 	6	 
	6.3 Actions by Committee
	 	 	6	 
	6.4 Powers of Committee
	 	 	6	 
	6.5 Decisions of Committee
	 	 	7	 
	6.6 Administrative Expenses
	 	 	8	 
	6.7 Eligibility to Participate
	 	 	8	 
	6.8 Indemnification
	 	 	8	 
	 
	SECTION 7 FUNDING
	 	 	8	 
	 
	7.1 Unfunded Plan
	 	 	8	 
	 
	SECTION 8 MODIFICATION OR TERMINATION OF PLAN
	 	 	8	 
	 
	8.1 Employers’ Obligations Limited
	 	 	8	 
	8.2 Right to Amend or Terminate
	 	 	8	 
	8.3 Effect of Termination
	 	 	9	 
	 
	SECTION 9 GENERAL PROVISIONS
	 	 	9	 
	 
	9.1 Plan Information
	 	 	9	 
	9.2 Inalienability
	 	 	9	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	9.3 Rights and Duties
	 	 	9	 
	9.4 No Enlargement of Employment Rights
	 	 	9	 
	9.5 Apportionment of Duties
	 	 	9	 
	9.6 Applicable Law
	 	 	9	 
	9.7 Severability
	 	 	10	 
	9.8 Captions
	 	 	10	 

-ii-

 

GENENTECH, INC.

SUPPLEMENTAL PLAN

(January 1, 2004 Restatement)

PREAMBLE

     GENENTECH, INC. (the “Company”), having established the Genentech, Inc. Supplemental Plan (the
“Plan”) effective as of January 1, 1991, for the benefit of a select group of management and highly
compensated employees of the Company and its participating affiliates, in order to provide such
employees with certain deferred compensation benefits, hereby amends and restates the Plan in its
entirety, effective as of January 1, 2004. The Plan is an unfunded deferred compensation plan that
is intended to qualify for the exemptions provided in sections 201, 301, and 401 of ERISA.

SECTION 1

DEFINITIONS

     The following capitalized words and phrases shall have the following meanings unless a
different meaning is plainly required by the context:

     1.1 “Affiliate” shall have the same meaning as that assigned from time to time to the
identical term under the Tax Reduction Investment Plan.

     1.2 “Basic Matching Contributions” shall mean for each Plan Year the amount (if any)
that was actually contributed to the Member’s TRIP+ Matching Account for the Plan Year.

     1.3 “Basic Nonelective Contributions” shall mean for each Plan Year the amount (if
any) that was actually contributed to the Member’s TRIP+ Nonelective Account for the Plan Year.

     1.4 “Beneficiary” shall mean the person or persons entitled to receive benefits under
the Plan upon the death of a Member in accordance with Section 5.4.

     1.5 “Board of Directors” shall mean the Board of Directors of the Company, as from
time to time constituted.

     1.6 “Code” shall mean the Internal Revenue Code of 1986, as amended. Reference to a
specific section of the Code shall include such section, any valid regulation promulgated
thereunder, and any comparable provision of any future legislation amending, supplementing or
superseding such section.

     1.7 “Committee” shall mean the Committee established under the Tax Reduction
Investment Plan, the members of which are appointed by the Board of Directors.

     1.8 “Company” shall mean Genentech, Inc., a Delaware corporation, and any successor by
merger, consolidation or otherwise that assumes the obligations of the Company under the Plan.

     1.9 “Dollar Limits” shall mean (collectively) the Salary Deferral Dollar Limit and the
limitations imposed by sections 401(a)(17) and 415 of the Code.

 

 

     1.10 “Eligible Employee” shall have the same meaning as that assigned from time to
time to the identical term under the Tax Reduction Investment Plan.

     1.11 “Employee” shall have the same meaning as that assigned from time to time to the
identical term under the Tax Reduction Investment Plan.

     1.12 “Employer” shall have the same meaning as that assigned from time to time to the
identical term under the Tax Reduction Investment Plan.

     1.13 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as
amended. Reference to a specific section of ERISA shall include such section, any valid regulation
promulgated thereunder, and any comparable provision of any future legislation amending,
supplementing or superseding such section.

     1.14 “Member” shall mean an Eligible Employee who has become a Member of the Plan
pursuant to Section 2.1 and has not ceased to be a Member pursuant to Section 2.2.

     1.15 “Member’s Account” or “Account” shall mean as to any Member the separate
account maintained on the books of his or her Employer in order to reflect his or her interest
under the Plan. Each Member’s Account shall reflect the amounts credited thereto in accordance
with Section 3.1 and the investment return credited thereto in accordance with Section 3.2. The
maintenance of a separate Account for each Member shall be for bookkeeping purposes only, and shall
not be deemed to segregate or set aside for the Member, nor to give the Member any ownership
interest in, any specific assets of the Company or any Employer. All amounts credited to a
Member’s Account under the Plan shall continue for all purposes to be a part of the general assets
of his or her Employer, as set forth in Section 7.1 concerning “Unfunded Plan”.

     1.16 “Plan” shall mean the Genentech, Inc. Supplemental Plan, as set forth in this
instrument and as heretofore or hereafter amended from time to time.

     1.17 “Plan Year” shall mean the calendar year.

     1.18 “Salary Deferral Dollar Limit” shall mean the limitation on salary deferrals
imposed by section 402(g) of the Code.

     1.19 “Salary Deferral Nondiscrimination Limits” shall mean the limitations on salary
deferrals imposed by sections 401(k)(3)(A)(ii) and 401(m)(9) of the Code as they apply to the Tax
Reduction Investment Plan.

     1.20 “Tax Reduction Investment Plan” or “TRIP+” shall mean the Genentech, Inc.
Tax Reduction Investment Plan, as heretofore or hereafter amended from time to time.

     1.21 “TRIP+ Matching Account” shall have the same meaning as that assigned from time
to time to the term “Matching Account” under the Tax Reduction Investment Plan.

     1.22 “TRIP+ Matching Contributions” shall have the same meaning as that assigned from
time to time to the term “Matching Contributions” under the Tax Reduction Investment Plan.

-2-

 

     1.23 “TRIP+ Nonelective Account” shall have the same meaning as that assigned from
time to time to the term “Nonelective Account” under the Tax Reduction Investment Plan.

     1.24 “TRIP+ Nonelective Contributions” shall have the same meaning as that assigned
from time to time to the term “Nonelective Contributions” under the Tax Reduction Investment Plan.

     1.25 “TRIP+ Salary Deferrals” shall have the same meaning as that assigned from time
to time to the term “Salary Deferrals” under the Tax Reduction Investment Plan.

     1.26 “Unrestricted Matching Contributions” shall mean for each Plan Year the amount
that would have been contributed to the Member’s TRIP+ Matching Account for the Plan Year if the
Employer had made contributions not constrained by any Dollar Limit.

     1.27 “Unrestricted Nonelective Contributions” shall mean for each Plan Year the amount
that would have been contributed to the Member’s TRIP+ Nonelective Account for the Plan Year if the
Employer had made contributions not constrained by any Dollar Limit.

     1.28 “Valuation Date” shall mean the following: (a) for purposes of valuing amounts
credited to Members’ Accounts for periodic reports and statements, the date as of which such
reports or statements are made; and (b) for purposes of determining the amount of assets to be
distributed to the Member or his or her Beneficiary, the date designated by the Committee, in its
discretion. In all cases, the Committee may, in its discretion, change the Valuation Date (on a
nondiscriminatory basis) as is necessary or appropriate. Notwithstanding the foregoing, the
Valuation Date shall occur at least annually.

SECTION 2

MEMBERSHIP

     2.1 Membership. Each Eligible Employee shall become a Member of this Plan as of the
last day of the first Plan Year for which:

          (a) (i) His or her TRIP+ Salary Deferrals are limited due to (A) the Salary Deferral Dollar
Limit, or (B) the Salary Deferral Nondiscrimination Limits (but only if his or her TRIP+ Salary
Deferrals otherwise would have been limited by the Salary Deferral Dollar Limit had the Salary
Deferral Nondiscrimination Limits not applied); and (ii) his or her TRIP+ Matching Contributions
are limited due to any Dollar Limit; or

          (b) His or her TRIP+ Nonelective Contributions are limited due to any Dollar Limit.

     2.2 Termination of Membership. An Eligible Employee who has become a Member shall
remain a Member until his or her entire Account balance is distributed.

-3-

 

SECTION 3

BENEFITS

     3.1 Benefits.

          3.1.1 General.

               (a) For each Plan Year, the Account maintained for each Member who satisfies the requirements
of Section 2.1(a) for the Plan Year shall be credited with an amount equal to the amount by which
his or her Unrestricted Matching Contributions for the Plan Year exceed his or her Basic Matching
Contributions for the Plan Year.

               (b) For each Plan Year, the Account maintained for each Member who satisfies the requirements
of Section 2.1(b) for the Plan Year shall be credited with an amount equal to the amount by which
his or her Unrestricted Nonelective Contributions for the Plan Year exceed his or her Basic
Nonelective Contributions for the Plan Year.

          3.1.2 Timing. The amounts credited under this Section 3.1 to a Member’s Account shall
be credited as of the Valuation Date in the Plan Year selected by the Committee.

          3.1.3 Eligible Members. Notwithstanding the foregoing provisions of this Section 3.1:

               (a) No amount shall be credited to a Member’s Account for a Plan Year pursuant to Section
3.1.1(a) unless: (i) he or she has deferred the maximum amount permitted under the Tax Reduction
Investment Plan for the Plan Year (taking into account the Salary Deferral Dollar Limit and the
Salary Deferral Nondiscrimination Limits, and determined by reference to actual amounts, not
percentages of compensation, deferred); and (ii) he or she is eligible for a TRIP+ Matching
Contribution for the Plan Year in accordance with the provisions of the Tax Reduction Investment
Plan; and

               (b) No amount shall be credited to a Member’s Account for a Plan Year pursuant to Section
3.1.1(b) unless he or she is eligible for a TRIP+ Nonelective Contribution for the Plan Year in
accordance with the provisions of the Tax Reduction Investment Plan.

     3.2 Investment Return. Although no assets will be segregated or otherwise set aside
with respect to a Member’s Account, the amount that is credited to a Member’s Account shall be
credited with interest at such rate(s), and in accordance with such calculation methods, as the
Committee may determine from time to time. The interest rate and method of calculation of
investment return in effect for any Plan Year shall be announced to the Members.

SECTION 4

VESTING

     4.1 Accounts Nonforfeitable. Each Member shall at all times have a fully (100%)
vested and nonforfeitable interest in the then value of amounts credited to his or her Account.

-4-

 

SECTION 5

DISTRIBUTIONS

     5.1 Distribution. Distribution of the balance credited to a Member’s Account shall be
made by the Member’s Employer to the Member (or, in the event of the death of the Member, to the
Member’s Beneficiary) upon termination of the Member’s employment with all Employers and
Affiliates.

     5.2 Time for Distribution. The distribution of a Member’s Account shall occur as soon
as practicable after the end of the calendar month that next follows the date the Member’s
employment terminates.

     5.3 Form of Distribution. The distribution of a Member’s Account shall be made in the
form of a single lump sum payment of cash (or its equivalent) equal to the balance credited to the
Account as of the Valuation Date.

     5.4 Beneficiary Designations. Each Member may designate one or more Beneficiaries in
a signed writing delivered to the Committee.

          5.4.1 Spousal Consent. If a Member designates any person other than his or her spouse
as a primary Beneficiary, the designation shall be void unless the Member’s spouse consents to the
designation. Any spousal consent required under this Section 5.4 shall be void unless it (a) is
set forth in writing, (b) acknowledges the effect of the Member’s designation of another person as
his or her Beneficiary under the Plan, and (c) is signed by the spouse. Notwithstanding the
foregoing, if the Member establishes to the satisfaction of the Committee that written spousal
consent may not be obtained because there is no spouse or the spouse cannot be located, his or her
designation shall be effective without spousal consent. Any spousal consent required under this
Section 5.4.1 shall be irrevocable and valid only with respect to the spouse who signs the consent.
A Member may revoke his or her Beneficiary designation in writing at any time, regardless of his
or her spouse’s previous consent to the revoked designation, and any such revoked designation shall
be void.

          5.4.2 Changes and Failed Designations. A Member may designate different Beneficiaries
(or may revoke a prior Beneficiary designation) at any time by delivering a new
designation (or revocation of a prior designation) in like manner. Any designation shall
become effective only upon its receipt by the Committee but shall cease to be effective when a
revocation of that designation by the Member is received by the Committee. The last effective
designation received by the Committee shall supersede all prior designations. If a Member dies
without having effectively designated a Beneficiary, or if no Beneficiary survives the Member, the
Member’s Account shall be payable to his or her surviving spouse or, if the Member is not survived
by his or her spouse, the Account shall be paid to one or more of the following persons in the
following priority order:

               (a) The Member’s surviving children (as defined below), in equal shares of the trustee of any
trust or trusts established for the benefit of the Member’s surviving children; for the purpose of
applying this Section, children shall mean the Member’s children (whether or not adopted)
and the issue of the Member’s deceased children, by the right of representation;

-5-

 

               (b) The Member’s surviving parents or parent, in equal shares, or the trustees of any trusts
established for the benefit of the Member’s surviving parents or parent; or

               (c) The executors and/or administrators of his or her estate.

     5.5 Payments to Incompetents. If any individual to whom a benefit is payable under
the Plan is a minor, or if the Committee determines that any individual to whom a benefit is
payable under the Plan is physically or mentally incompetent to receive such payment or to give a
valid release therefor, payment shall be made to the guardian, committee or other representative of
the estate of such individual which has been duly appointed by a court of competent jurisdiction.
If no guardian, committee or other representative has been appointed, payment may be made to or
applied to or for the benefit of the minor or incompetent, the incompetent’s spouse, children or
other dependents, the institution or persons maintaining the minor or incompetent, or any of them,
in such proportions as the Committee from time to time shall determine; and the release of the
person or institution receiving the payment shall be valid and complete discharge of any liability
with respect to any benefit so paid.

     5.6 Undistributable Accounts. Each Member and (in the event of death) his or her
Beneficiary shall keep the Committee advised of his or her current address. If the Committee is
unable to locate the Member or Beneficiary to whom a Member’s Account is payable under this Section
5, the Member’s Account shall be frozen as of the date on which distribution would have been
completed in accordance with this Section 5, and no additional investment return shall be credited
thereto.

SECTION 6

ADMINISTRATION OF THE PLAN

     6.1 Plan Administrator. The Company is hereby designated as the administrator of the
Plan (within the meaning of section 3(16)(A) of ERISA).

     6.2 Committee. The Plan shall be administered by the Committee. The Committee shall
have the authority to control and manage the operation and administration of the Plan. Any member
of the Committee who is also an Employee shall serve as such without additional compensation. Any
member of the Committee may resign at any time by notice in writing mailed or delivered to the
Board of Directors. The Board of Directors may remove any member of the Committee at any time and
may fill any vacancy which exists.

     6.3 Actions by Committee. Each decision of a majority of the members of the Committee
then in office shall constitute the final and binding act of the Committee. The Committee may act
with or without a meeting being called or held and shall keep minutes of all meetings held and a
record of all actions taken. Except as otherwise specifically or generally directed by the
Committee, any action of the Committee may be evidenced by a writing signed by any two (2) members
of the Committee.

     6.4 Powers of Committee. The Committee shall have all powers necessary to supervise
the administration of the Plan and to control its operation in accordance with its terms,
including, but not by way of limitation, the following powers:

-6-

 

          (a) To interpret the provisions of the Plan and to determine any question arising under, or in
connection with the administration or operation of, the Plan;

          (b) To determine all questions concerning the eligibility of any Employee to become or remain
a Member of the Plan;

          (c) To cause an Account to be established and maintained for each Member and to make
determinations with respect to investment returns credited to such Accounts as provided in Section
3.2;

          (d) To establish and revise an accounting method for the Plan;

          (e) To determine the status and rights of Members and their spouses, Beneficiaries or estates;

          (f) To employ such counsel, agents and advisors, and to obtain such legal, clerical and other
services, as it may deem necessary or appropriate in carrying out the provisions of the Plan;

          (g) To prescribe the form and manner in which any Member, or his or her spouse or other
Beneficiary, shall make any election or designation required under the Plan,

          (h) To establish rules for the performance of its powers and duties and for the administration
of the Plan;

          (i) To establish rules and regulations by which requests for Plan information from Members are
processed expeditiously and completely;

          (j) To provide each terminated Member notice of his or her vested interest under the Plan;

          (k) To publish a claims and appeal procedure satisfying the minimum standards of section 503
of ERISA pursuant to which Members or their spouses, Beneficiaries or estates may claim Plan
benefits and appeal denials of such claims;

          (l) To act as agent for the Company in keeping all records and assisting with the preparation
of all reports and disclosures necessary for purpose of complying with the reporting and disclosure
requirements of ERISA; and

          (m) To delegate to any one or more of its members or to any other person, severally or
jointly, the authority to perform for and on behalf of the Committee one or more of the functions
of the Committee under the Plan.

     6.5 Decisions of Committee. All decisions of the Committee, and any action taken by
it in respect of the Plan and within the powers granted to it under the Plan, and any
interpretation of any provision of the Plan shall be conclusive and binding on all persons, and
shall be given the maximum possible deference allowed by law.

-7-

 

     6.6 Administrative Expenses. All expenses incurred in the administration of the Plan
by the Employers, the Committee or otherwise, including legal fees and expenses, shall be paid and
borne by the Employers and/or the Members (as directed by the Committee).

     6.7 Eligibility to Participate. No member of the Committee who is also an Employee
shall be excluded from membership in the Plan if otherwise eligible, but he or she shall not be
entitled, as a member of the Committee, to act or pass upon any matters pertaining specifically to
his or her own Account under the Plan.

     6.8 Indemnification. Each of the Employers shall, and hereby does, indemnify and hold
harmless any of its Employees, officers or directors, and the members of the Committee, from and
against any and all losses, claims, damages or liabilities (including attorneys’ fees and amounts
paid, with the approval of the Board of Directors, in settlement of any claim) arising out of or
resulting from the implementation of a duty, act or decision with respect to the Plan, so long as
such duty, act or decision does not involve gross negligence or willful misconduct on the part of
any such individual.

SECTION 7

FUNDING

     7.1 Unfunded Plan. All amounts credited to a Member’s Account under the Plan shall
continue for all purposes to be a part of the general assets of his or her Employer. The interest
of the Member in his or her Account, including his or her right to distribution thereof, shall be
an unsecured claim against the general assets of his or her Employer. Nothing contained in this
Plan shall give any Member or Beneficiary any interest in or claim against any specific assets of
the Company or any Employer.

SECTION 8

MODIFICATION OR TERMINATION OF PLAN

     8.1 Employers’ Obligations Limited. The Plan is voluntary on the part of the
Employers, and the Employers do not guarantee to continue the Plan. The Company may, by
appropriate amendment of the Plan, discontinue crediting amounts under the Plan for any reason at
any time. The complete discontinuance of the crediting of all amounts under the Plan shall be
deemed a termination of the Plan.

     8.2 Right to Amend or Terminate. The Company reserves the right to alter, amend or
terminate the Plan, or any part thereof, in such manner as it may determine. Amendments which do
not add materially to the Employers’ costs under the Plan and which are either necessary to comply
with ERISA or other applicable law, are technical or intended to ease administration may be adopted
if approved in writing by any two of the following officers of the Company: the Vice-President,
Human Resources; the Vice President and Treasurer; the Vice President and Chief Financial Officer.
All other amendments shall be approved by the Board of Directors or its delegate. Any such
alteration, amendment or termination shall take effect upon the date indicated in the document
embodying such alteration, amendment or termination; provided, however, that no such alteration or
amendment shall divest any portion of an Account with respect to amounts accrued prior to the
adoption of the amendment. For purposes of determining the effectiveness of any alteration,

-8-

 

amendment or termination, this Plan shall be treated as if subject to section 204(g) of ERISA,
which provides that the Company cannot reduce benefits that have accrued prior to any alteration,
amendment or termination.

     8.3 Effect of Termination. If the Plan is terminated, then the interests of all
Members in their Accounts shall remain fully (100%) vested and nonforfeitable. The balances
credited to the Accounts of the Members shall be distributed to them at the time and in the manner
set forth in Section 5; provided, however, that the Committee, in its sole discretion, may cause
the Members’ Accounts to be distributed as of an earlier date.

SECTION 9

GENERAL PROVISIONS

     9.1 Plan Information. Each Member shall be advised of the general provisions of the
Plan and, upon written request addressed to the Committee, shall be furnished with any information
requested, to the extent required by applicable law, regarding his or her status, rights and
privileges under the Plan.

     9.2 Inalienability. In no event may any Member, former Member or his or her spouse,
Beneficiary or estate sell, transfer, anticipate, assign, hypothecate, or otherwise dispose of any
right or interest under the Plan; and such rights and interests shall not at any time be subject to
the claims of creditors of any Member, former Member or his or her spouse, Beneficiary or estate
nor be liable to attachment, execution or other legal process.

     9.3 Rights and Duties. Neither the Employers nor the Committee shall be subject to
any liability or duty under the Plan except as expressly provided in the Plan, or for any other
action taken, omitted or suffered in good faith.

     9.4 No Enlargement of Employment Rights. Neither the establishment or maintenance of
the Plan, the crediting of any amounts under the Plan nor any action of any Employer or the
Committee shall be held or construed to confer upon any individual any right to be continued as an
Employee nor, upon dismissal, any right or interest in any specific assets of the Employers other
than as provided in the Plan. Each Employer expressly reserves the right to discharge any Employee
at any time.

     9.5 Apportionment of Duties. All acts required of the Employers under the Plan may be
performed by the Company for itself and its Affiliates. Any costs incurred by the Company for
itself or its Affiliates in connection with the Plan and the costs of the Plan shall be equitably
apportioned among the Company and the other Employers, as determined by the Committee (in its
discretion). Whenever an Employer is permitted or required under the terms of the Plan to do or
perform any act, matter or thing, it shall be done and performed by any officer or employee of the
Employer who is thereunto duly authorized by the board of directors of the Employer.

     9.6 Applicable Law. The provisions of the Plan shall be construed, administered and
enforced in accordance with the laws of the State of California and, to the extent applicable,
ERISA.

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     9.7 Severability. If any provision of the Plan is held invalid or unenforceable, its
invalidity or unenforceability shall not affect any other provisions of the Plan, and the Plan
shall be construed and enforced as if such provision had not been included.

     9.8 Captions. The captions contained in and the table of contents prefixed to the
Plan are inserted only as a matter of convenience and for reference and in no way define, limit,
enlarge or describe the scope or intent of the Plan nor in any way shall affect the construction of
any provision of the Plan.

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EXECUTION

     IN WITNESS WHEREOF, Genentech, Inc., by its duly authorized officers, has executed this
restated Plan on the date(s) indicated below.

	 	 	 	 	 
	 	GENENTECH, INC.

 	 
	 	By  	 
	 	 	Title: 	 
	 	 	 	 

	 	 	 	 	 
	 

	 	Dated	 	 
	

	 	 	 	 

	 	 	 	 	 
	 	 	 
	 	By  	
 
	 	 	Title: 	 
	 	 	 	 
	 

	 	 	 	 	 
	 

	 	Datedexv4w1

 

Exhibit 4.1

SINA CORPORATION

and

AMERICAN STOCK TRANSFER & TRUST COMPANY,

as Rights Agent

Rights Agreement

Dated as of February 22, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Section 1. Certain Definitions
	 	 	1	 
	 
	 	 	 	 
	Section 2. Appointment of Rights Agent
	 	 	7	 
	 
	 	 	 	 
	Section 3. Issuance of Rights Certificates
	 	 	7	 
	 
	 	 	 	 
	Section 4. Form of Rights Certificates
	 	 	9	 
	 
	 	 	 	 
	Section 5. Countersignature and Registration
	 	 	10	 
	 
	 	 	 	 
	Section 6. Transfer, Split-Up, Combination and Exchange of Rights
Certificates; Mutilated, Destroyed, Lost or Stolen Rights
Certificates
	 	 	11	 
	 
	 	 	 	 
	Section 7. Exercise of Rights; Purchase Price; Expiration Date of Rights
	 	 	12	 
	 
	 	 	 	 
	Section 8. Cancellation and Destruction of Rights Certificates
	 	 	14	 
	 
	 	 	 	 
	Section 9. Reservation and Availability of Ordinary Shares
	 	 	15	 
	 
	 	 	 	 
	Section 10. Ordinary Shares Record Date
	 	 	17	 
	 
	 	 	 	 
	Section 11. Adjustment of Purchase Price, Number and Kind of
Shares or Number of Rights
	 	 	17	 
	 
	 	 	 	 
	Section 12. Certificate of Adjusted Purchase Price or Number of Shares
	 	 	26	 
	 
	 	 	 	 
	Section 13. Consolidation, Amalgamation, Merger or Sale or Transfer
of Assets Cash Flow or Earning Power
	 	 	27	 
	 
	 	 	 	 
	Section 14. Fractional Rights and Fractional Shares
	 	 	30	 
	 
	 	 	 	 
	Section 15. Rights of Action
	 	 	31	 

i

 

	 	 	 	 	 
	Section 16. Agreement of Rights Holders
	 	 	32	 
	 
	 	 	 	 
	Section 17. Rights Certificate Holder Not Deemed a Shareholder
	 	 	32	 
	 
	 	 	 	 
	Section 18. Concerning the Rights Agent
	 	 	33	 
	 
	 	 	 	 
	Section 19. Merger, Amalgamation or Consolidation or Change of Name of
Rights Agent
	 	 	34	 
	 
	 	 	 	 
	Section 20. Duties of Rights Agent
	 	 	34	 
	 
	 	 	 	 
	Section 21. Change of Rights Agent
	 	 	37	 
	 
	 	 	 	 
	Section 22. Issuance of New Rights Certificates
	 	 	38	 
	 
	 	 	 	 
	Section 23. Redemption and Termination
	 	 	39	 
	 
	 	 	 	 
	Section 24. Exchange
	 	 	40	 
	 
	 	 	 	 
	Section 25. Notice of Certain Events
	 	 	41	 
	 
	 	 	 	 
	Section 26. Notices
	 	 	42	 
	 
	 	 	 	 
	Section 27. Supplements and Amendments
	 	 	43	 
	 
	 	 	 	 
	Section 28. Successors
	 	 	44	 
	 
	 	 	 	 
	Section 29. Determinations and Actions by the Board of Directors, etc
	 	 	44	 
	 
	 	 	 	 
	Section 30. Benefits of this Agreement
	 	 	45	 
	 
	 	 	 	 
	Section 31. Severability
	 	 	45	 
	 
	 	 	 	 
	Section 32. Governing Law
	 	 	45	 
	 
	 	 	 	 
	Section 33. Counterparts
	 	 	45	 

ii

 

	 	 	 	 	 
	Section 34. Descriptive Headings

	 	 	46	 

iii

 

EXHIBITS

	 	 	 
	Exhibit A —

	 	Form of Rights Certificate
	Exhibit B —

	 	Form of Summary of Rights

iv

 

 

RIGHTS AGREEMENT

          RIGHTS AGREEMENT, dated as of February 22, 2005 (the “Agreement”), between SINA
Corporation, a Cayman Islands exempted company (the “Company”), and American Stock Transfer &
Trust Company, a New York bank (the “Rights Agent”).

 W I T N E S E T H

          WHEREAS, on February 22, 2005 (the “Rights Issuance Authorization Date”), the Board of
Directors of the Company (the “Board”) authorized the issuance of one right (a “Right”) for
each Ordinary Share (as hereinafter defined) of the Company outstanding at the close of
business on March 7, 2005 (the “Record Date”) (it being understood that shares held by direct
or indirect wholly owed Subsidiaries of the Company shall not be considered as outstanding),
and has authorized the issuance of one Right (as such number may hereinafter be adjusted
pursuant to the provisions of Section 11(p) hereof) for each Ordinary Share issued between the
Record Date and the Distribution Date (as hereinafter defined), each Right initially
representing the right to purchase one Ordinary Share of the Company (as hereinafter defined),
upon the terms and subject to the conditions hereinafter set forth.

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

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

               (a) “Acquiring Person” shall mean any Person who or which, together with all Affiliates
and Associates of such Person, shall be the Beneficial Owner of ten percent (10%) or more of
the Ordinary Shares of the Company then outstanding, but shall not include (i) the Company,
(ii) any Subsidiary of the Company, (iii) any employee benefit plan of the Company, or of any
Subsidiary of the Company, or any Person or entity organized, appointed or established by the
Company for or pursuant to the terms of any such plan, (iv) any Exempt Person, (v) any Person
who becomes the Beneficial Owner of ten percent (10%) or more of the Ordinary Shares of the
Company then outstanding as a result of a reduction in the number of shares outstanding due to
the repurchase of shares by

 

 

the Company unless and until such Person, after becoming aware that such Person has
become the Beneficial Owner of ten percent (10%) or more of the then outstanding Ordinary
Shares, acquires beneficial ownership of additional shares representing one half of one
percent (0.5%) or more of the Ordinary Shares of the Company then outstanding or (vi) any
Exempt Person who ceases to be an Exempt Person as a result of a reduction in the number of
shares outstanding due to the repurchase of shares by the Company unless and until such Exempt
Person, after becoming aware that it has ceased to be an Exempt Person as a result of such
reduction, acquires beneficial ownership of such number of additional shares which, when taken
together with the number of shares acquired pursuant to clause (B) of the definition of Exempt
Person, represents one half of one percent (0.5%) or more of the Ordinary Shares outstanding
at the time of acquisition of any such additional shares pursuant to this clause (vi).

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

               (c) “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in
Rule 12b-2 of the General Rules and Regulations under the Exchange Act.

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

                    (i) which such Person or any of such Person’s Affiliates or Associates,
directly or indirectly, has the right to acquire (whether such right is
exercisable immediately or only after the passage of time or upon the
satisfaction of one or more conditions (whether or not within the control of such
Person)) pursuant to any agreement, arrangement or understanding (whether or not
in writing) or upon the exercise of conversion rights, exchange rights, other
rights, warrants or options, or otherwise; provided, however, that a Person shall
not be deemed the “Beneficial Owner” of, or to “beneficially own,” (A) securities
tendered pursuant to a tender or exchange offer made by such Person or any of
such Person’s Affiliates or Associates until such tendered securities are
accepted for purchase or exchange, (B) securities issuable upon exercise of
Rights at any time prior to the occurrence of a Triggering Event (as hereinafter
defined), or (C) securities issuable upon exercise of Rights from and after the
occurrence of a Triggering Event which Rights were acquired

2

 

by such Person or any of such Person’s Affiliates or Associates prior to the Distribution
Date (as hereinafter defined) or pursuant to Section 3(a) or Section 22 hereof (the “Original
Rights”) or pursuant to Section 11(i) hereof in connection with an adjustment made with
respect to any Original Rights;

                    (ii) which such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has the right to vote or dispose of or has “beneficial ownership” of (as
determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Exchange
Act), including pursuant to any agreement, arrangement or understanding, whether or not in
writing; provided, however, that a Person shall not be deemed the “Beneficial Owner” of, or
to “beneficially own,” any security under this subparagraph (ii) as a result of an agreement,
arrangement or understanding to vote such security if such agreement, arrangement or
understanding: (A) arises solely from a revocable proxy given in response to a public proxy
or consent solicitation made pursuant to, and in accordance with, the applicable provisions
of the General Rules and Regulations under the Exchange Act, and (B) is not reportable by
such Person on Schedule 13D under the Exchange Act (or any comparable or successor report);
or

                    (iii) which are beneficially owned, directly or indirectly, by any other Person (or any
Affiliate or Associate thereof) with which such Person (or any of such Person’s Affiliates or
Associates) has any agreement, arrangement or understanding (whether or not in writing), for
the purpose of acquiring, holding, voting (except pursuant to a revocable proxy as described
in the proviso to subparagraph (ii) of this paragraph (d)) or disposing of any voting
securities of the Company; provided, however, that nothing in this paragraph (d) shall cause
a Person engaged in business as an underwriter of securities to be the “Beneficial Owner” of,
or to “beneficially own,” any securities acquired through such Person’s participation in good
faith in a firm commitment underwriting until the expiration of forty (40) days after the
date of such acquisition, and then only if such securities continue to be owned by such
Person at such expiration of forty (40) days.

3

 

               (e) “Board” shall have the meaning set forth in the preamble of this Agreement.

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

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

               (h) “Company”shall have the meaning set forth in the preamble hereto.

               (i) “Current Market Price” shall have the meaning determined in accordance with Section
11(d)(i) hereof.

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

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

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

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

               (n) “Exempt Person”shall mean each of the following: (i) Shanda Interactive
Entertainment Limited, a Cayman Islands limited company, (ii) Skyline Media Limited, a
British Virgin Islands limited company, (iii) Skyline Capital International Limited, a
British Virgin Islands limited company, (iv) Shanda Media Limited, a British Virgin Islands
limited company, and (v) Tianqiao Chen, a citizen of the Peoples Republic of China, but, with
respect to clauses (i) through (v) of this paragraph, each such Exempt Person shall be
considered an Exempt Person only to the extent that the Ordinary Shares

4

 

Beneficially Owned by each such Exempt Person do not exceed the number of shares (A)
which both (1) are Beneficially Owned by such Exempt Person on the Rights Issuance
Authorization Date and (2) have been publicly disclosed as being Beneficially Owned by such
Exempt Person (in a filing with the U.S. Securities and Exchange Commission or in a press
release of such Exempt Person) on or prior to the Rights Issuance Authorization Date, plus (B)
any additional shares representing, in the aggregate for all persons in clauses (i) through
(v) of this paragraph (together with their Affiliates and Associates), not more than one half
of one percent (0.5%) of the Ordinary Shares then outstanding.

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

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

               (q) “Ordinary Shares” when used with reference to the Company shall mean the ordinary
shares, par value $0.133 per share, of the Company at the date hereof or any other shares
resulting from successive changes or reclassifications of the ordinary shares. “Ordinary
Shares” when used with reference to any Person other than the Company shall mean the capital
stock of such Person with the greatest voting power, or the equity securities or other equity
interest having power to control or direct the management, of such Person.

               (r) “Person” shall mean any individual, firm, corporation, partnership or other
entity.

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

               (t) “Purchase Price” shall have the meaning set forth in Section 4(a) hereof.

               (u) “Record Date” shall have the meaning set forth in the preamble of this
Agreement.

               (v) “Rights” shall have the meaning set forth in the preamble of this
Agreement.

5

 

               (w) “Rights Agent” shall have the meaning set forth in the preamble of this Agreement.

               (x) “Rights Certificate” shall have the meaning set forth in Section 3(a)
hereof.

               (y) “Rights Issuance Authorization Date” shall have the meaning set forth in the preamble of
this Agreement.

               (z) “Section 11(a)(ii) Event” shall mean any event described in Section 11(a)(ii) hereof.

               (aa) “Section 13 Event” shall mean any event described in clauses (x), (y) or (z) of Section
13(a) hereof.

               (bb) “Share Acquisition Date” shall mean the first date of public announcement (which,
for purposes of this definition, shall include, without limitation, a report filed or amended
pursuant to Section 13(d) under the Exchange Act) by the Company or an Acquiring Person that
an Acquiring Person has become such.

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

               (dd) “Subsidiary” shall mean, with reference to any Person, any corporation of which an
amount of voting securities sufficient to elect at least a majority of the directors of such
corporation is beneficially owned, directly or indirectly, by such Person, or otherwise
controlled by such Person.

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

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

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

6

 

               (hh) “Triggering Event” shall mean any Section 11(a)(ii) Event or any Section
13 Event.

          Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act
as rights agent for the Company and the holders of the Rights (who, in accordance with Section 3
hereof, shall prior to the Distribution Date also be the holders of the Ordinary Shares) in
accordance with the terms and conditions hereof, and the Rights Agent hereby accepts such
appointment. The Company may from time to time appoint such co-rights agents as it may deem
necessary or desirable.

          Section 3. Issuance of Rights Certificates.

               (a) Until the earlier of (i) the close of business on the tenth Business Day after the
Share Acquisition Date (or, if the tenth Business Day after the Share Acquisition Date occurs
before the Record Date, the close of business on the Record Date), or (ii) the close of
business on the tenth Business Day (or such later date as the Board shall determine) after the date that a
tender or exchange offer by any Person (other than the Company, any Subsidiary of the Company,
any employee benefit plan of the Company or of any Subsidiary of the Company, or any Person or
entity organized, appointed or established by the Company for or pursuant to the terms of any
such plan) is first published or sent or given within the meaning of Rule 14d-2(a) of the
General Rules and Regulations under the Exchange Act, if, upon consummation thereof, such
Person would become an Acquiring Person (the earlier of (i) and (ii) being herein referred to
as the “Distribution Date”), (x) the Rights will be evidenced (subject to the provisions of
paragraph (b) of this Section 3) by the certificates for the Ordinary Shares registered in the
names of the holders of the Ordinary Shares (which certificates for Ordinary Shares shall be
deemed also to be certificates for Rights), and, in each such case, not by separate
certificates, and (y) the Rights will be transferable only in connection with the transfer of
the underlying Ordinary Shares (including a transfer to the Company). As soon as practicable
after the Distribution Date, the Rights Agent will send by first-class, insured,
postage-prepaid mail, to each record holder of the Ordinary Shares as of the close of business
on the Distribution Date, at the address of such holder shown on the records of the Company,
one or more rights certificates, in substantially the form of Exhibit A hereto (the “Rights
Certificates”), evidencing one Right for each Ordinary Share so held, subject to adjustment as
provided herein. In the event that an adjustment in the number of Rights per Ordinary Share
has been made pursuant to Section 11(p) hereof, at the time of distribution

7

 

of the Rights Certificates, the Company shall make the necessary and appropriate rounding
adjustments (in accordance with Section 14(a) hereof) so that Rights Certificates representing
only whole numbers of Rights are distributed and cash is paid in lieu of any fractional
Rights. As of and after the Distribution Date, the Rights will be evidenced solely by such
Rights Certificates. The Company shall promptly notify the Rights Agent in writing upon the
occurrence of the Distribution Date. Until such notice is received by the Rights Agent, the
Rights Agent may presume conclusively for all purposes that the Distribution Date has not
occurred.

               (b) The Company will make available, as promptly as practicable following the Record
Date, a copy of a Summary of Rights, in substantially the form attached hereto as Exhibit B
(the “Summary of Rights”) to any holder of Rights who may so request from time to time prior
to the Expiration Date. With respect to certificates for the Ordinary Shares outstanding as
of the Record Date, or issued subsequent to the Record Date, unless and until the
Distribution Date shall occur, the Rights will be evidenced by such certificates for the
Ordinary Shares and the registered holders of the Ordinary Shares shall also be the
registered holders of the associated Rights. Until the earlier of the Distribution Date or
the Expiration Date, the transfer of any certificates representing Ordinary Shares in respect
of which Rights have been issued shall also constitute the transfer of the Rights associated
with such Ordinary Shares.

               (c) Rights shall be issued in respect of all Ordinary Shares which are issued (whether
originally issued or transferred to third parties by wholly owned Subsidiaries of the Company)
after the Record Date but prior to the earlier of the Distribution Date or the Expiration
Date. Certificates representing such Ordinary Shares shall also be deemed to be certificates
for Rights, and shall bear the following legend if such certificates are issued after the
Record Date but prior to the earlier of the Distribution Date or the Expiration Date:

          This certificate also evidences and entitles the holder hereof to certain
Rights as set forth in the Rights Agreement between SINA Corporation (the
“Company”) and American Stock Transfer & Trust Company (the “Rights Agent”), dated
as of February 22, 2005, as it may be amended from time to time (the “Rights
Agreement”), the terms of which are hereby incorporated herein by reference and a
copy of which is on file at the office of the Rights
Agent designated for such purpose. Under certain circumstances, as set forth
in the Rights Agreement, such Rights will

8

 

be evidenced by separate certificates and will no longer be evidenced by this
certificate. The Rights Agent will mail to the holder of this certificate a copy
of the Rights Agreement, as in effect on the date of mailing, without charge,
promptly after receipt of a written request therefor. Under certain circumstances
set forth in the Rights Agreement, Rights issued to, or held by, any Person who
is, was or becomes an Acquiring Person or any Affiliate or Associate thereof (as
such terms are defined in the Rights Agreement), whether currently held by or on
behalf of such Person or by any subsequent holder, may become null and void.

With respect to such certificates containing the foregoing legend, until the earlier of (i)
the Distribution Date or (ii) the Expiration Date, the Rights associated with the Ordinary
Shares represented by such certificates shall be evidenced by such certificates alone and
registered holders of Ordinary Shares shall also be the registered holders of the associated
Rights, and the transfer of any of such certificates shall also constitute the transfer of the
Rights associated with the Ordinary Shares represented by such certificates.

          Section 4. Form of Rights Certificates.

               (a) The Rights Certificates (and the forms of election to purchase and of assignment to
be printed on the reverse thereof) shall each be substantially in the form set forth in
Exhibit A hereto and may have such marks of identification or designation and such legends,
summaries or endorsements printed thereon as the Company may deem appropriate and as are not
inconsistent with the provisions of this Agreement, or as may be required to comply with any
applicable law or with any rule or regulation made pursuant thereto or with any rule or
regulation of any stock exchange on which the Rights may from time to time be listed, or to
conform to usage (but which shall not, in any case, affect the rights or duties of the Rights
Agent). Subject to the provisions of Section 11 and Section 22 hereof, the Rights
Certificates, whenever distributed, shall be dated as of the Record Date and on their face
shall entitle the holders thereof to purchase one Ordinary Share at the price set forth
therein (such exercise price per share, the “Purchase Price”), but the amount and type of
securities purchasable upon the exercise of each Right and the Purchase Price thereof shall be
subject to adjustment as provided herein.

               (b) Any Rights Certificate issued pursuant to Section 3(a), Section 11(i) or Section 22
hereof that represents Rights beneficially owned by: (i) an Acquiring Person or any
Associate or Affiliate of an Acquiring Person, (ii) a transferee of

9

 

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

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

          Section 5. Countersignature and Registration.

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

10

 

shall be a proper officer of the Company to sign such Rights Certificate, although at the date of
the execution of this Rights Agreement any such person was not such an officer.

               (b) Following the Distribution Date, receipt by the Rights Agent of notice to that effect
and all other relevant information referred to in Section 3(a), the Rights Agent will keep, or
cause to be kept, at its office designated for such purpose, books for registration and
transfer of the Rights Certificates issued hereunder. Such books shall show the names and
addresses of the respective holders of the Rights Certificates, the number of Rights evidenced
on its face by each of the Rights Certificates and the date of each of the Rights
Certificates.

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

               (a) Subject to the provisions of Section 4(b), Section 7(e) and Section 14 hereof, at any
time after the close of business on the Distribution Date, and at or prior to the close of
business on the Expiration Date, any Rights Certificate or Certificates (other than Rights
Certificates representing Rights that may have been exchanged pursuant to Section 24 hereof)
may be transferred, split up, combined or exchanged for another Rights Certificate or
Certificates, entitling the registered holder to purchase a like number of Ordinary Shares
(or, following a Triggering Event, Ordinary Shares, other securities, cash or other assets, as
the case may be) as the Rights Certificate or Certificates surrendered then entitles such
holder (or former holder in the case of a transfer) to purchase. Any registered holder
desiring to transfer, split up, combine or exchange any Rights Certificate or Certificates
shall make such request in writing delivered to the Rights Agent, and shall surrender the
Rights Certificate or Certificates to be transferred, split up, combined or exchanged at the
office of the Rights Agent designated for such purpose. Neither the Rights Agent nor the
Company shall be obligated to take any action whatsoever with respect to the transfer of any
such surrendered Rights Certificate until the registered holder shall have completed and
signed the certificate contained in the form of assignment on the reverse side of such Rights
Certificate, shall have provided such additional evidence of the identity of the
Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the
Company or the Rights Agent shall reasonably request and shall have paid a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any transfer,
split up, combination or exchange of Rights Certificates. Thereupon the Rights Agent shall,
subject to Section 4(b), Section

11

 

7(e), Section 14 and Section 24, countersign and deliver to the Person entitled thereto a Rights
Certificate or Rights Certificates, as the case may be, as so requested.

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

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

               (a) Subject to Section 7(e) hereof, at any time after the Distribution Date the
registered holder of any Rights Certificate may exercise the Rights evidenced thereby (except
as otherwise provided herein including, without limitation, the restrictions on exercisability
set forth in Section 9(c), Section 11(a)(iii) and Section 23(a) hereof) in whole or in part
upon surrender of the Rights Certificate, with the form of election to purchase and the
certificate on the reverse side thereof duly executed, to the Rights Agent at the office of
the Rights Agent designated for such purpose, together with payment of the aggregate Purchase
Price with respect to the total number of Ordinary Shares (or other securities, cash or other
assets, as the case may be) as to which such surrendered Rights are then exercisable, and an
amount equal to any tax or charge required to be paid under Section 9(e), at or prior to the
earlier of (i) 5:00 P.M., New York City time, on February 22, 2015, or such earlier or later
date as may be established by the Board prior to the expiration of the Rights (such date, as
it may be extended by the Board, the “Final Expiration
Date”), or (ii) the time at which the
Rights are redeemed or exchanged as provided in Section 23 and Section 24 hereof (the earlier
of (i) and (ii) being herein referred to as the “Expiration Date”).

               (b) The Purchase Price for each Ordinary Share pursuant to the exercise of a Right
initially shall be $150, and shall be subject to adjustment from time to time as provided in
Section 11 and Section 13(a) hereof and shall be payable in accordance with paragraph (c)
below.

12

 

               (c) Upon receipt of a Rights Certificate representing exercisable Rights, with the form
of election to purchase and the certificate duly executed, accompanied by payment, with
respect to each Right so exercised, of the Purchase Price per Ordinary Share (or other shares,
securities, cash or other assets, as the case may be) to be purchased as set forth below and
an amount equal to any applicable transfer tax or charge required to be paid under Section
9(e), the Rights Agent shall, subject to Section 20(k) hereof, thereupon promptly (i) (A)
requisition from any transfer agent of the Ordinary Shares (or make available, if the Rights
Agent is the transfer agent for such shares) certificates for the total number of Ordinary
Shares to be purchased and the Company hereby irrevocably authorizes its transfer agent to
comply with all such requests, or (B) if the Company shall have elected to deposit the total
number of Ordinary Shares issuable upon exercise of the Rights hereunder with a depositary
agent, requisition from
the depositary agent depositary receipts representing such number of Ordinary Shares as
are to be purchased (in which case certificates for the Ordinary Shares represented by such
receipts shall be deposited by the transfer agent with the depositary agent) and the Company
will direct the depositary agent to comply with such request, (ii) requisition from the
Company the amount of cash, if any, to be paid in lieu of fractional shares in accordance with
Section 14 hereof, (iii) after receipt of such certificates or depositary receipts, cause the
same to be delivered to or, upon the order of the registered holder of such Rights
Certificate, registered in such name or names as may be designated by such holder, and (iv)
after receipt thereof, deliver such cash, if any, to or upon the order of the registered
holder of such Rights Certificate. The payment of the Purchase Price (as such amount may be
reduced pursuant to Section 11(a)(iii) hereof) shall be made in cash or by certified bank
check or bank draft payable to the order of the Company. In the event that the Company is
obligated to issue other securities (including Ordinary Shares) of the Company, pay cash
and/or distribute other property pursuant to Section 11(a) hereof, the Company will make all
arrangements necessary so that such other securities, cash and/or other property are available
for distribution by the Rights Agent, if and when appropriate. The Company reserves the right
to require prior to the occurrence of a Triggering Event that, upon any exercise of Rights, a
number of Rights be exercised so that only whole Ordinary Shares would be issued.

               (d) In case the registered holder of any Rights Certificate shall exercise less than all
the Rights evidenced thereby, a new Rights Certificate evidencing the Rights remaining
unexercised shall be issued by the Rights Agent and delivered to, or upon the order of, the
registered holder of such Rights Certificate, registered in such name or

13

 

names as may be designated by such holder, subject to the provisions of Section 14 hereof.

               (e) Notwithstanding anything in this Agreement to the contrary, from and after the first
occurrence of a Section 11(a)(ii) Event, any Rights beneficially owned by (i) an Acquiring
Person or an Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring
Person (or of any such Associate or Affiliate) who becomes a transferee after the Acquiring
Person becomes such, or (iii) a transferee of an Acquiring Person (or of any such Associate or
Affiliate) who becomes a transferee prior to or concurrently with the Acquiring Person
becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for
consideration) from the Acquiring Person to holders of equity interests in such Acquiring
Person or to any Person with whom the Acquiring Person has any continuing agreement,
arrangement or understanding regarding the transferred Rights or (B) a transfer which the
Board has determined is part of a plan, arrangement or understanding which has as a primary
purpose or effect the avoidance of this Section 7(e), shall become null and void without any
further action and no holder of such Rights shall have any rights whatsoever with respect to
such Rights, whether under any provision of this Agreement or otherwise. The Company shall use
all reasonable efforts to insure that the provisions of this Section 7(e) and Section 4(b)
hereof are complied with, but shall have no liability to any holder of Rights Certificates or
any other Person as a result of its failure to make any determinations with respect to an
Acquiring Person or any of its Affiliates, Associates or transferees hereunder.

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

          Section 8.  Cancellation and Destruction of Rights Certificates.

          All Rights Certificates surrendered for the purpose of exercise, transfer, split-up,
combination or exchange shall, if surrendered to the Company or any of its

14

 

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

          Section 9. Reservation and Availability of Ordinary Shares.

               (a) The Company covenants and agrees that it will cause to be reserved and kept available
out of its authorized and unissued Ordinary Shares (and, following the occurrence of a
Triggering Event, out of its authorized and unissued Ordinary Shares and/or other securities),
the number of Ordinary Shares (and, following the occurrence of a Triggering Event, Ordinary
Shares and/or other securities) that, as provided in this Agreement including Section
11(a)(iii) hereof, will be sufficient to permit the exercise in full of all outstanding
Rights.

               (b) So long as the Ordinary Shares (and, following the occurrence of a Triggering
Event, Ordinary Shares and/or other securities) issuable and deliverable upon the exercise
of the Rights may be listed on any national securities exchange, the Company shall use its
best efforts to cause, from and after such time as the Rights become exercisable, all shares
reserved for such issuance to be listed on such exchange upon official notice of issuance
upon such exercise.

               (c) The Company shall use its best efforts to (i) file, as soon as practicable following
the earliest date after the first occurrence of a Section 11(a)(ii) Event on which the
consideration to be delivered by the Company upon exercise of the Rights has been determined
in accordance with Section 11(a)(iii) hereof, a registration statement under the Act, with
respect to the securities purchasable upon exercise of the Rights on an appropriate form, (ii)
cause such registration statement to become effective as soon as practicable after such
filing, and (iii) cause such registration statement to remain effective (with a prospectus at
all times meeting the requirements of the Act) until the earlier of (A) the date as of which
the Rights are no longer exercisable for such securities, and (B) the date of the expiration
of the Rights. The Company will also take such action as may be

15

 

appropriate under, or to ensure compliance with, the securities or “blue sky” laws of the
various states in connection with the exercisability of the Rights. The Company may
temporarily suspend, for a period of time not to exceed ninety (90) days after the date set
forth in clause (i) of the first sentence of this Section 9(c), the exercisability of the
Rights in order to prepare and file such registration statement and permit it to become
effective. Upon any such suspension, the Company shall issue a public announcement stating
that the exercisability of the Rights has been temporarily suspended, as well as a public
announcement at such time as the suspension has been rescinded. The Company shall notify the
Rights Agent whenever it makes a public announcement pursuant to this Section 9(c) and give
the Rights Agent a copy of such announcement. In addition, if the Company shall determine that
a registration statement is required following the Distribution Date, the Company may
temporarily suspend the exercisability of the Rights
until such time as a registration statement has been declared effective. Notwithstanding
any provision of this Agreement to the contrary, the Rights shall not be exercisable in any
jurisdiction if the requisite qualification in such jurisdiction shall not have been obtained,
the exercise thereof shall not be permitted under applicable law, or a registration statement
shall not have been declared effective.

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

               (e) The Company further covenants and agrees that it will pay when due and payable any
and all federal and state transfer taxes and charges which may be payable in respect of the
issuance or delivery of the Rights Certificates and of any certificates for a number of
Ordinary Shares (or Ordinary Shares and/or other securities, as the case may be) upon the
exercise of Rights. The Company shall not, however, be required to pay any transfer tax which
may be payable in respect of any transfer or delivery of Rights Certificates to a Person other
than, or the issuance or delivery of a number of Ordinary Shares (or Ordinary Shares and/or
other securities, as the case may be) in respect of a name other than that of the registered
holder of the Rights Certificates evidencing Rights surrendered for exercise or to issue or
deliver any certificates for a number of Ordinary Shares (or Ordinary Shares and/or other
securities, as the case may be) in a name other than that of the registered holder upon the
exercise of any Rights until

16

 

such tax shall have been paid (any such tax being payable by the holder of such Rights
Certificates at the time of surrender) or until it has been established to the Company’s and
the Rights Agent’s reasonable satisfaction that no such tax is due.

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

          Section 11. Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights.
The Purchase Price, the number and kind of shares covered by each Right and the number of
Rights outstanding are subject to adjustment from time to time as provided in this Section
11.

               (a) (i) In the event the Company shall at any time after the date of this Agreement (A)
declare a dividend on the Ordinary Shares payable in Ordinary Shares, (B) subdivide the
outstanding Ordinary Shares, (C) combine the outstanding Ordinary Shares into a smaller number
of shares, or (D) issue any shares of its capital stock in a reclassification of the Ordinary
Shares (including
any such reclassification in connection with a consolidation, amalgamation or merger in
which the Company is the continuing or surviving corporation), except as otherwise provided in
this Section 11(a) and Section 7(e) hereof, the Purchase Price in effect at the time of the
record date for such

17

 

dividend or of the effective date of such subdivision, combination or reclassification, and
the number and kind of Ordinary Shares or capital stock, as the case may be, issuable on such
date, shall be proportionately adjusted so that the holder of any Right exercised after such
time shall be entitled to receive, upon payment of the Purchase Price then in effect, the
aggregate number and kind of Ordinary Shares or capital stock, as the case may be, which, if
such Right had been exercised immediately prior to such date and at a time when the Ordinary
Shares transfer books of the Company were open, such holder would have owned upon such
exercise and been entitled to receive by virtue of such dividend, subdivision, combination or
reclassification. If an event occurs which would require an adjustment under both this
Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided for in this Section
11(a)(i) shall be in addition to, and shall be made prior to, any adjustment required
pursuant to Section 11(a)(ii) hereof.

               (ii) In the event any Person shall, at any time after the Rights Issuance
Authorization Date, become an Acquiring Person, unless the event causing such
Person to become an Acquiring Person is a transaction set forth in Section 13(a)
hereof, then, promptly following the later of the occurrence of such event and
the Record Date, proper provision shall be made so that (A) each holder of a
Right (except as provided below and in Section 7(e) hereof) shall thereafter have
the right to receive, upon exercise thereof at the then current Purchase Price in
accordance with the terms of this Agreement, such number of Ordinary Shares of
the Company as shall equal the result obtained by (x) multiplying the then
current Purchase Price by the then number of Ordinary Shares for which a Right
was exercisable immediately prior to the first occurrence of a Section 11(a)(ii)
Event, and (y) dividing that product (which, following such first occurrence,
shall thereafter be referred to as the “Purchase Price” for each such Right and
for all purposes of this Agreement) by 50% of the Current Market Price
(determined pursuant to Section 11(d) hereof) per Ordinary Share on the date of
such first occurrence (such number of shares, the “Adjustment Shares”). The
Company shall give the Rights Agent written notice of the identity of any such
Acquiring Person, Associate or Affiliate, or the nominee of any of the foregoing,
and the Rights Agent may rely on such notice in carrying out is duties under this
Agreement and shall be deemed not to have any knowledge of the identity of any
such Acquiring Person, Associate or Affiliate, or the nominee of any of the
foregoing, unless and until it shall have received such notice.

18

 

               (iii) In the event that the number of Ordinary Shares which is authorized by the
Company’s Amended and Restated Memorandum of Association but not outstanding or reserved for
issuance for purposes other than upon exercise of the Rights, is not sufficient to permit the
exercise in full of the Rights in accordance with the foregoing subparagraph (ii) of this
Section 11(a), the Company shall (A) determine the value of the Adjustment Shares issuable
upon the exercise of a Right (the “Current Value”), and (B) with respect to each Right
(subject to Section 7(e) hereof), make adequate provision to substitute for the Adjustment
Shares, upon the exercise of a Right and payment of the applicable Purchase Price, (1) cash,
(2) a reduction in the Purchase Price, (3) Ordinary Shares or other equity securities of the
Company (including, without limitation, preference shares, or units of preference
shares, which the Board has deemed to have essentially the same value or economic rights
as Ordinary Shares), (4) debt securities of the Company, (5) other assets, or (6) any
combination of the foregoing, having an aggregate value equal to the Current Value (less the
amount of any reduction in the Purchase Price), where such aggregate value has been
determined by the Board based upon the advice of a nationally recognized investment banking
firm selected by the Board; provided,however, that if the Company shall not have made
adequate provision to deliver value pursuant to clause (B) above within thirty (30) days
following the later of (x) the first occurrence of a Section 11(a)(ii) Event and (y) the date
on which the Company’s right of redemption pursuant to Section 23(a) expires (the later of
(x) and (y) being referred to herein as the “Section 11(a)(ii) Trigger Date”), then the
Company shall be obligated to deliver, upon the surrender for exercise of a Right and without
requiring payment of the Purchase Price, Ordinary Shares, (to the extent available) and then,
if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread. For
purposes of the preceding sentence, the term “Spread” shall mean the excess of (i) the
Current Value over (ii) the Purchase Price. If the Board determines in good faith that it is
likely that sufficient additional Ordinary Shares could be authorized for issuance upon
exercise in full of the Rights, the thirty (30) day period set forth above may be extended to
the extent necessary, but not more than ninety (90) days after the Section 11(a)(ii) Trigger
Date, in order that the Company may seek shareholder approval for the authoriza-

19

 

tion of such additional shares (such thirty (30) day period, as it may be
extended, is herein called the “Substitution Period”). To the extent that the
Company determines that action should be taken pursuant to the first and/or third
sentences of this Section 11(a)(iii), the Company (1) shall provide, subject to
Section 7(e) hereof, that such action shall apply uniformly to all outstanding
Rights, and (2) may suspend the exercisability of the Rights until the expiration
of the Substitution Period in order to seek such shareholder approval for such
authorization of additional shares and/or to decide the appropriate form of
distribution to be made pursuant to such first sentence and to determine the
value thereof. In the event of any such suspension, the Company shall issue a
public announcement stating that the exercisability of the Rights has been
temporarily suspended, as well as a public announcement at such time as the
suspension is no longer in effect. The Company shall notify the Rights Agent
whenever it makes a public announcement pursuant to this Section 11(a)(iii) and
give the Rights Agent a copy of such announcement. For purposes of this Section
11(a)(iii), the value of each Adjustment Share shall be the Current Market Price
per Ordinary Share on the Section 11(a)(ii) Trigger Date.

               (b) In case the Company shall fix a record date for the issuance of rights, options or
warrants to all holders of Ordinary Shares entitling them to subscribe for or purchase (for a
period expiring within forty-five (45) calendar days after such record date) Ordinary Shares
or securities convertible into Ordinary Shares at a price per Ordinary Share or having a
conversion price per share, if a security convertible into Ordinary Shares) less than the
Current Market Price (as determined pursuant to Section 11(d) hereof) per Ordinary Share on
such record date, the Purchase Price to be in effect after such record date shall be
determined by multiplying the Purchase Price in effect immediately prior to such record date
by a fraction, the numerator of which shall be the number of Ordinary Shares outstanding on
such record date, plus the number of Ordinary Shares which the aggregate offering price of the
total number of Ordinary Shares so to be offered (and/or the aggregate initial conversion
price of the convertible securities so to be offered) would purchase at such Current Market
Price, and the denominator of which shall be the number of Ordinary Shares outstanding on such
record date, plus the number of additional Ordinary Shares to be offered for subscription or
purchase (or into which the convertible securities so to be offered are initially
convertible). In case such subscription price may be paid by delivery of consideration, part
or all of which may be in a form other than cash, the value of such consideration
shall be as determined in good faith by the

20

 

Board, whose determination shall be described in a statement filed with the Rights Agent and
shall be binding on the Rights Agent and the holders of the Rights. Ordinary Shares owned by
or held for the account of the Company shall not be deemed outstanding for the purpose of any
such computation. Such adjustment shall be made successively whenever such a record date is
fixed, and in the event that such rights or warrants are not so issued, the Purchase Price
shall be adjusted to be the Purchase Price which would then be in effect if such record date
had not been fixed.

               (c) In case the Company shall fix a record date for a distribution to all holders of
Ordinary Shares (including any such distribution made in connection with a consolidation,
amalgamation or merger in which the Company is the continuing corporation), cash (other than a
regular quarterly cash dividend out of the earnings or retained earnings of the Company),
assets (other than a dividend payable in Ordinary Shares, but including any dividend payable
in shares other than Ordinary Shares) or evidences of indebtedness, or of subscription rights
or warrants (excluding those referred to in Section 11(b) hereof), the Purchase Price to be in
effect after such record date shall be determined by multiplying the Purchase Price in effect
immediately prior to such record date by a fraction, the numerator of which shall be the
Current Market Price (as determined pursuant to Section 11(d) hereof) per Ordinary Share on
such record date, less the fair market value (as determined in good faith by the Board, whose
determination shall be described in a statement filed with the Rights Agent) of the portion of
the cash, assets or evidences of indebtedness so to be distributed or of such subscription
rights or warrants applicable to an Ordinary Share, and the denominator of which shall be such
Current Market Price (as determined pursuant to Section 11(d) hereof) per Ordinary Share. Such
adjustments shall be made successively whenever such a record date is fixed, and in the event
that such distribution is not so made, the Purchase Price shall be adjusted to be the Purchase
Price which would have been in effect if such record date had not been fixed.

               (d) The Current Market Price per Ordinary Share on any date shall be deemed to be (1)
for the purpose of any computation hereunder, other than computations made pursuant to Section
11(a)(iii) hereof, the average of the daily closing prices per such Ordinary Share for the
thirty (30) consecutive Trading Days immediately prior to such date, and (2) for purposes of
computations made pursuant to Section 11(a)(iii) hereof, the average of the daily closing
prices per such Ordinary Share for the ten (10) consecutive Trading Days immediately following
such date; provided that in the event that the Current Market Price per Ordinary Share is
determined during a period following the announcement by the issuer of such Ordinary Shares of
(A) a dividend or distribution

21

 

on such Ordinary Shares payable in such Ordinary Shares or securities convertible into such
Ordinary Shares (other than the Rights), or (B) any subdivision, combination or
reclassification of such Ordinary Shares, and the ex-dividend date for such dividend or
distribution, or the record date for such subdivision, combination or reclassification shall
not have occurred prior to the commencement of the requisite thirty (30) Trading Day or ten
(10) Trading Day period, as set forth above, then, and in each such case, the Current Market
Price shall be properly adjusted to take into account ex-dividend trading. The closing price
for each day shall be the last sale price, regular way, or, in case no such sale takes place
on such day, the average of the closing bid and asked prices, regular way, in either case as
reported in the principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on the New York Stock Exchange or, if the Ordinary Shares are
not listed or admitted to trading on the New York Stock Exchange, as reported in the principal
consolidated transaction reporting system with respect to
securities listed on the principal national securities exchange on which the Ordinary Shares
are listed or admitted to trading or, if the Ordinary Shares are not listed or admitted to
trading on any national securities exchange, the last quoted price or, if not so quoted, the
average of the high bid and low asked prices in the over-the-counter market, as reported by
the National Association of Securities Dealers Automated Quotation System (“NASDAQ”) or such
other system then in use, or, if on any such date the Ordinary Shares are not quoted by any
such organization, the average of the closing bid and asked prices as furnished by a
professional market maker making a market in the Ordinary Shares selected by the Board. If on
any such date no market maker is making a market in the Ordinary Shares, the fair value of
such shares on such date as determined in good faith by the Board shall be used. The term
“Trading Day” shall mean a day on which the principal national securities exchange on which
the Ordinary Shares are listed or admitted to trading is open for the transaction of business
or, if the Ordinary Shares are not listed or admitted to trading on any national securities
exchange, a Business Day. If the Ordinary Shares are not publicly held or not so listed or
traded, Current Market Price per share shall mean the fair value per share as determined in
good faith by the Board, whose determination shall be described in a statement filed with the
Rights Agent and shall be conclusive for all purposes.

               (e) Anything herein to the contrary notwithstanding, no adjustment in the Purchase Price
shall be required unless such adjustment would require an increase or decrease of at least one
percent (1%) in the Purchase Price; provided, however, that any adjustments which by reason of
this Section 11(e) are not required to be made shall be carried forward and taken into account
in any subsequent adjustment. All

22

 

calculations under this Section 11 shall be made to the nearest cent or to the nearest
ten-thousandth of an Ordinary Share. Notwithstanding the first sentence of this Section
11(e), any adjustment required by this Section 11 shall be made no later than the earlier of
(i) three (3) years from the date of the transaction which mandates such adjustment, or (ii)
the Expiration Date.

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

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

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

               (i) The Company may elect on or after the date of any adjustment of the Purchase Price
to adjust the number of Rights, in lieu of any adjustment in the number of Ordinary Shares
purchasable upon the exercise of a Right. Each of the Rights outstanding after the adjustment
in the number of Rights shall be exercisable for the number of Ordinary Shares for which a
Right was exercisable immediately prior to such

23

 

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

               (j) Irrespective of any adjustment or change in the Purchase Price or the number of
Ordinary Shares issuable upon the exercise of the Rights, the Rights Certificates theretofore
and thereafter issued may continue to express the Purchase Price per share and the number of
shares which were expressed in the initial Rights Certificates issued hereunder.

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

24

 

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

               (m) Anything in this Section 11 to the contrary notwithstanding, the Company shall be
entitled to make such reductions in the Purchase Price, in addition to those adjustments
expressly required by this Section 11, as and to the extent that in their good faith judgment
the Board shall determine to be advisable in order that any (i) consolidation or subdivision
of the Ordinary Shares, (ii) issuance wholly for cash of any Ordinary Shares at less than the
Current Market Price, (iii) issuance wholly for cash of Ordinary Shares or securities which by
their terms are convertible into or exchangeable for Ordinary Shares, (iv) stock dividends or
(v) issuance of rights, options or warrants referred to in this Section 11, hereafter made by
the Company to holders of its Ordinary Shares shall not be taxable to such shareholders.

               (n) The Company covenants and agrees that it shall not, at any time after the
Distribution Date, (i) consolidate with any other Person (other than a Subsidiary of the
Company in a transaction which complies with Section 11(o) hereof), (ii) merge with or into
any other Person (other than a Subsidiary of the Company in a transaction which complies with
Section 11(o) hereof), (iii) amalgamate with any other Person (other than a Subsidiary of the
Company in a transaction which complies with Section 11(o) hereof) or (iv) sell or transfer
(or permit any Subsidiary to sell or transfer), in one transaction, or a series of related
transactions, assets, cash flow or earning power aggregating more than 50% of the assets or
earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or
Persons (other than the Company and/or any of its Subsidiaries in one or more transactions
each of which complies with Section 11(o) hereof), if (x) at the time of or immediately after
such consolidation, amalgamation, merger or sale there are any rights, warrants or other
instruments or

25

 

securities outstanding or agreements in effect which would substantially diminish or
otherwise eliminate the benefits intended to be afforded by the Rights or (y) prior to,
simultaneously with or immediately after such consolidation, amalgamation, merger or sale,
the shareholders of the Person who constitutes, or would constitute, the “Principal Party”
for purposes of Section 13(a) hereof shall have received a distribution of Rights previously
owned by such Person or any of its Affiliates and Associates.

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

               (p) Anything in this Agreement to the contrary notwithstanding, in the event that the
Company shall at any time after the Rights Issuance Authorization Date and prior to the
Distribution Date (i) declare a dividend on the outstanding Ordinary Shares payable in
Ordinary Shares, (ii) subdivide the outstanding Ordinary Shares, or (iii) combine the
outstanding Ordinary Shares into a smaller number of shares, the number of Rights associated
with each Ordinary Share then outstanding, or issued or delivered thereafter but prior to the
Distribution Date, shall be proportionately adjusted so that the number of Rights thereafter
associated with each Ordinary Share following any such event shall equal the result obtained
by multiplying the number of Rights associated with each Ordinary Share immediately prior to
such event by a fraction the numerator which shall be the total number of Ordinary Shares
outstanding immediately prior to the occurrence of the event and the denominator of which
shall be the total number of Ordinary Shares outstanding immediately following the occurrence
of such event.

          Section 12. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an
adjustment is made as provided in Section 11 and Section 13 hereof, the Company shall (a)
promptly prepare a certificate setting forth such adjustment and a brief statement of the
facts accounting for such adjustment, (b) promptly file with the Rights Agent, and with each
transfer agent for the Ordinary Shares,
a copy of such certificate and (c) if a Distribution Date has occurred, mail a brief
summary thereof to each holder of a Rights Certificate (or, if prior to the Distribution Date,
to each holder of a certificate representing Ordinary Shares) in accordance with Section 26
hereof. The Rights Agent shall be fully protected in relying on any such certificate and on
any adjust-

26

 

ment or statement therein contained and shall have no duty or liability with respect to,
and shall not be deemed to have knowledge of, any adjustment unless and until it shall have
received such a certificate.

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

               (a) In the event that, following the Share Acquisition Date, directly or indirectly, (x)
the Company shall consolidate with, amalgamate with, or merge with and into, any other Person
(other than a Subsidiary of the Company in a transaction which complies with Section 11(o)
hereof), and the Company shall not be the continuing or surviving corporation of such
consolidation, amalgamation or merger, (y) any Person (other than a Subsidiary of the Company
in a transaction which complies with Section 11(o) hereof) shall consolidate with, amalgamate
with, or merge with or into, the Company, and the Company shall be the continuing or surviving
corporation of such consolidation, amalgamation or merger and, in connection with such
consolidation, amalgamation or merger, all or part of the outstanding Ordinary Shares shall be
changed into or exchanged for shares or other securities of any other Person or cash or any
other property, or (z) the Company shall sell or otherwise transfer (or one or more of its
Subsidiaries shall sell or otherwise transfer), in one transaction or a series of related
transactions, assets, cash flow or earning power aggregating more than 50% of the assets, cash
flow or earning power of the Company and its Subsidiaries (taken as a whole) to any Person or
Persons (other than the Company or any Subsidiary of the Company in one or more transactions
each of which complies with Section 11(o) hereof), then, and in each such case, proper
provision shall be made so that: (i) each holder of a Right, except as provided in Section
7(e) hereof, shall thereafter have the right to receive, upon the exercise thereof at the then
current Purchase Price in accordance with the terms of this Agreement, such number of validly
authorized and issued, fully paid, non-assessable and freely tradeable Ordinary Shares of the
Principal Party (as such term is hereinafter defined), not subject to any liens, encumbrances,
rights of first refusal or other adverse claims, as shall be equal to the result obtained by
(1) multiplying the then current Purchase Price by the number of Ordinary Shares for which a
Right is exercisable immediately prior to the first occurrence of a Section 13 Event (or, if a
Section 11(a)(ii) Event has occurred prior to the first occurrence of a Section 13 Event,
multiplying the number of such shares for which a Right was exercisable immediately prior to
the first occurrence of a Section 11(a)(ii) Event by the Purchase Price in effect immediately
prior to such first occurrence of a Section 11(a)(ii) Event), and (2) dividing that product
(which, following the first occurrence of a Section 13 Event, shall be referred to as the
“Purchase

27

 

Price” for each Right and for all purposes of this Agreement) by 50% of the Current Market
Price (determined pursuant to Section 11(d)(i) hereof) per Ordinary Share of such Principal
Party on the date of consummation of such Section 13 Event; (ii) such Principal Party shall
thereafter be liable for, and shall assume, by virtue of such Section 13 Event, all the
obligations and duties of the Company pursuant to this Agreement; (iii) the term “Company”
shall thereafter be deemed to refer to such Principal Party, it being specifically intended
that the provisions of Section 11 hereof shall apply only to such Principal Party following
the first occurrence of a Section 13 Event; (iv) such Principal Party shall take such steps
(including, but not limited to, the reservation of a sufficient number of Ordinary Shares) in
connection
with the consummation of any such transaction as may be necessary to assure that the
provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation
to its Ordinary Shares thereafter deliverable upon the exercise of the Rights; and (v) the
provisions of Section 11(a)(ii) hereof shall be of no effect following the first occurrence of
any Section 13 Event.

          (b) “Principal Party” shall mean:

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

          (ii) in the case of any transaction described in clause (z) of the first
sentence of Section 13(a) hereof, the Person that is the party receiving the
greatest portion of the assets, cash flow or earning power transferred pursuant
to such transaction or transactions; provided, however, that in any such case,
(1) if the Ordinary Shares of such Person are not at such time and have not been
continuously over the preceding twelve (12) month period registered under Section
12 of the Exchange Act, and such Person is a direct or indirect Subsidiary of
another Person the Ordinary Shares of which are and have been so registered,
“Principal Party” shall refer to such other Person; and (2) in case such Person
is a Subsidiary, directly or indirectly, of more than one Person, the Ordinary
Shares of two or more of which are and have been so registered, “Princi-

28

 

pal Party” shall refer to whichever of such Persons is the issuer of the Ordinary Shares
having the greatest aggregate market value.

               (c) The Company shall not consummate any such consolidation, amalgamation, merger, sale
or transfer unless the Principal Party shall have a sufficient number of authorized Ordinary
Shares which have not been issued or reserved for issuance to permit the exercise in full of
the Rights in accordance with this Section 13 and unless prior thereto the Company and such
Principal Party shall have executed and delivered to the Rights Agent a supplemental agreement
providing for the terms set forth in paragraphs (a) and (b) of this Section 13 and further
providing that, as soon as practicable after the date of any consolidation, amalgamation,
merger or sale of assets mentioned in paragraph (a) of this Section 13, the Principal Party
will:

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

               (ii) take all such other action as may be necessary to enable the Principal
Party to issue the securities purchasable upon exercise of the Rights, including
but not limited to the registration or qualification of such securities under all
requisite securities laws of jurisdictions of the various states and the listing
of such securities on such exchanges and trading markets as may be necessary or
appropriate; and

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

The provisions of this Section 13 shall similarly apply to successive mergers, amalgamations
or consolidations or sales or other transfers. In the event that a Section 13 Event shall
occur at any time after the occurrence of a Section 11(a)(ii) Event, the Rights

29

 

which have not theretofore been exercised shall thereafter become exercisable in the manner
described in Section 13(a).

          Section 14.
Fractional Rights and Fractional Shares.

               (a) The Company shall not be required to issue fractions of Rights, except prior to the
Distribution Date as provided in Section 11(p) hereof, or to distribute Rights Certificates
which evidence fractional Rights. In lieu of such fractional Rights, the Company shall pay to
the registered holders of the Rights Certificates with regard to which such fractional Rights
would otherwise be issuable, an amount in cash equal to the same fraction of the current
market value of a whole Right. For purposes of this Section 14(a), the current market value of
a whole Right shall be the closing price of the Rights for the Trading Day immediately prior
to the date on which such fractional Rights would have been otherwise issuable. The closing
price of the Rights for any day shall be the last sale price, regular way, or, in case no such
sale takes place on such day, the average of the closing bid and asked prices, regular way, in
either case as reported in the principal consolidated transaction reporting system with
respect to securities listed or admitted to trading on the New York Stock Exchange or, if the
Rights are not listed or admitted to trading on the New York Stock Exchange, as reported in
the principal consolidated transaction reporting system with respect to securities listed on
the principal national securities exchange on which the Rights are listed or admitted to
trading, or if the Rights are not listed or admitted to trading on any national securities
exchange, the last quoted price or, if not so quoted, the average of the high bid and low
asked prices in the over-the-counter market, as reported by NASDAQ or such other system then
in use or, if on any such date the Rights are not quoted by any such organization, the average
of the closing bid and asked prices as furnished by a professional market maker making a
market in the Rights, selected by the Board. If on any such date no such market maker is
making a market in the Rights, the fair value of the Rights on such date as determined in good
faith by the Board shall be used.

               (b) The Company shall not be required to issue fractions of Ordinary Shares (other than
fractions which are integral multiples of one Ordinary Share) upon exercise of the Rights or
to distribute certificates which evidence fractional Ordinary Shares (other than fractions
which are integral multiples of one Ordinary Share). In lieu of fractional Ordinary Shares
that are not integral multiples of one Ordinary Share, the Company may pay to the registered
holders of Rights Certificates at the time such Rights are exercised as herein provided an
amount in cash equal to the same fraction of the

30

 

current market value of one Ordinary Share. For purposes of this Section 14(b), the
current market value of one Ordinary Share shall be the closing price of an Ordinary Share for
the Trading Day immediately prior to the date of such exercise.

               (c) Following the occurrence of a Triggering Event, the Company shall not be required to
issue fractions of Ordinary Shares upon exercise of the Rights or to distribute certificates
which evidence fractional Ordinary Shares. In lieu of fractional Ordinary Shares, the Company
may pay to the registered holders of Rights Certificates at the time such Rights are exercised
as herein provided an amount in cash equal to the same fraction of the current market value of one (1) Ordinary
Share. For purposes of this Section 14(c), the current market value of one Ordinary Share
shall be the closing price per Ordinary Share on the Trading Day immediately prior to the date
of such exercise.

               (d) The holder of a Right by the acceptance of the Rights expressly waives its right
to receive any fractional Rights or any fractional shares upon exercise of a Right, except
as permitted by this Section 14.

          Section 15.
Rights of Action. All rights of action in respect of this Agreement, excepting
the rights of action given to the Rights Agent under Section 18 and Section 20, are vested in the
respective registered holders of the Rights Certificates (and, prior to the Distribution Date, the
registered holders of the Ordinary Shares); and any registered holder of any Rights Certificate
(or, prior to the Distribution Date, of the Ordinary Shares), without the consent of the Rights
Agent or of the holder of any other Rights Certificate (or, prior to the Distribution Date, of the
Ordinary Shares), may, in its own behalf and for its own benefit, enforce, and may institute and
maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect
of, its right to exercise the Rights evidenced by such Rights Certificate in the manner provided in
such 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 shall be entitled to
specific performance of the obligations hereunder and injunctive relief against actual or
threatened violations of the obligations hereunder of any Person subject to this Agreement.

31

 

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

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

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

               (c) subject to Section 6(a) and Section 7(f) hereof, the Company and the Rights Agent
may deem and treat the person in whose name a Rights Certificate (or, prior to the
Distribution Date, the associated Ordinary Share certificate) is registered as the absolute
owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership
or writing on the Rights Certificates or the associated Ordinary Share certificate made by
anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither
the Company nor the Rights Agent, subject to the last sentence of Section 7(e) hereof, shall
be required to be affected by any notice to the contrary; and

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

          Section 17.
Rights Certificate Holder Not Deemed a Shareholder. No holder, as such, of any
Rights Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the
holder of the number of Ordinary Shares or any other securities of the Company which may at any
time be issuable on the exercise of the Rights represented thereby, nor shall anything contained
herein or in any Rights Certificate be

          

32

 

construed to confer upon the holder of any Rights Certificate, as such, any of the rights
of a shareholder of the Company or any right to vote for the election of directors or upon any
matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting shareholders
(except as provided in Section 25 hereof), or to receive dividends or subscription rights, or
otherwise, until the Right or Rights evidenced by such Rights Certificate shall have been
exercised in accordance with the provisions hereof.

          Section 18.
Concerning the Rights Agent.

               (a) The Company agrees to pay to the Rights Agent reasonable compensation for all
services rendered by it hereunder and to reimburse the Rights Agent for all reasonable
expenses, counsel fees and disbursements 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, judgment, fine, penalty, claim, demand, settlement, damage, cost, liability
or expense, including, without limitation the reasonable fees and expenses of counsel,
incurred without gross negligence, bad faith or willful misconduct on the part of the Rights
Agent, for any action taken, suffered or omitted by the Rights Agent pursuant to this
Agreement or in connection with the acceptance, administration, exercise and performance of
this Agreement, including the costs and expenses of defending against any claim of liability
in the premises. The costs and expenses incurred in enforcing this right of indemnification
shall be paid by the Company. Any liability of the Rights Agent under this Agreement will be
limited to the amount of fees paid by the Company to the Rights Agent. The indemnity provided
for herein shall survive the termination of this Agreement, the exercise or expiration of the
Rights, and the resignation or removal of the Rights Agent.

               (b) The Rights Agent shall be fully protected and authorized and shall incur no
liability for or in respect of any action taken, suffered or omitted by it in connection with
its administration of this Agreement and the exercise and performance of its duties
hereunder, in reliance upon any Rights Certificate or certificate for Ordinary Shares or for
other securities of the Company, instrument of assignment or transfer, power of attorney,
endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or other
paper or document believed by it to be genuine and to be signed, executed and, where
necessary, verified or acknowledged, by the proper Person or Persons, or otherwise upon the
advice of counsel as set forth in Section 20.

33

 

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

               (a) Any Person into which the Rights Agent or any successor Rights Agent may be merged or
with which it may be amalgamated or consolidated, or any Person resulting from any merger,
amalgamation or consolidation to which the Rights Agent or any successor Rights Agent shall be
a party, or any Person succeeding to the corporate trust, stock transfer or other shareholder
services business of the Rights Agent or any successor Rights Agent, shall be the successor to
the Rights Agent under this Agreement without the execution or filing of any paper or any
further act on the part of any of the parties hereto; but only if such Person would be
eligible for appointment as a successor Rights Agent under the provisions of Section 21 hereof. In case at the time such successor Rights Agent shall
succeed to the agency created by this Agreement, any of the Rights Certificates shall have
been countersigned but not delivered, any such successor Rights Agent may adopt the
countersignature of a predecessor Rights Agent and deliver such Rights Certificates so
countersigned; and in case at that time any of the Rights Certificates shall not have been
countersigned, any successor Rights Agent may countersign such Rights Certificates either in
the name of the predecessor or in the name of the successor Rights Agent; and in all such
cases such Rights Certificates shall have the full force provided in the Rights Certificates
and in this Agreement.

               (b) In case at any time the name of the Rights Agent shall be changed and at such time
any of the 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.

          Section 20.
Duties of Rights Agent. The Rights Agent undertakes to perform only 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:

34

 

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

               (b) Whenever in the performance of its duties under this Agreement the Rights Agent shall
deem it necessary or desirable that any fact or matter (including, without limitation, the
identity of any Acquiring Person and the determination of Current Market Price) be proved or
established by the Company prior to taking, suffering or omitting any action hereunder, such
fact or matter (unless other evidence in respect thereof be herein specifically prescribed)
may be deemed to be conclusively proved and established by a certificate signed by the
Chairman of the Board, the President, the Chief Executive Officer, the Chief Financial
Officer, the Secretary or the General Counsel of the Company and delivered to the Rights
Agent; and such certificate shall be full and complete authorization and protection to the
Rights Agent and the Rights Agent shall incur no liability for in respect of any action taken,
suffered in good faith by it under the provisions of this Agreement in reliance upon such
certificate.

               (c) The Rights Agent shall be liable hereunder to the Company and other Person only for
its own gross negligence, bad faith or willful misconduct. In no case, however, will the
Rights Agent be liable for special, indirect, punitive, incidental or consequential losses or
damages of any kind whatsoever (including but not limited to lost profits), even if the Rights
Agent has been advised of the possibility of such damages.

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

               (e) The Rights Agent shall not be under any responsibility in respect of the validity of
this Agreement or the execution and delivery hereof (except the due execution hereof by the
Rights Agent) or in respect of the validity or execution of any Rights Certificate (except
its countersignature thereof); nor shall it be responsible for any breach by the Company of
any covenant or condition contained in this Agreement or in any Rights Certificate; nor shall it be
responsible for any change in the exercisability of the

35

 

Rights or any adjustment required under the provisions of Section 11, Section 13 or Section 24
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 evidenced by Rights Certificates after receipt of the
certificate described in Section 12, upon which the Rights Agent may rely); nor shall it by
any act hereunder be deemed to make any representation or warranty as to the authorization or
reservation of any Ordinary Shares to be issued pursuant to this Agreement or any Rights
Certificate or as to whether any Ordinary Shares will, when so issued, be validly authorized
and issued, fully paid and nonassessable.

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

               (g) The Rights Agent is hereby authorized and directed to accept instructions with
respect to the performance of its duties hereunder from the Chairman of the Board, the
President, the Chief Executive Officer, the Chief Financial Officer, the Secretary or the
General Counsel of the Company, and to apply to such officers for advice or instructions in
connection with its duties, and such instructions shall be full authorization and protection
to the Rights Agent and the Rights Agent shall not be liable for or in respect of any action
taken, suffered or omitted by it in good faith in accordance with instructions of any such
officer or for any delay in acting while waiting for those instructions. The Rights Agent
shall be fully authorized and protected in relying upon the most recent instructions received
from any such officers.

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

36

 

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

               (j) No provision of this Agreement shall require the Rights Agent to expend or risk its
own funds or otherwise incur any financial liability in the performance of any of its duties
hereunder or in the exercise of any of its rights or powers if there shall be reasonable
grounds for believing that repayment of such funds or adequate indemnification against such
risk or liability is not reasonably assured to it.

               (k) If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or transfer, the certificate attached to the form of assignment or form of
election to purchase, as the case may be, has either not been completed or indicates an
affirmative response to clause 1 and/or 2 thereof, the Rights Agent shall not take any further
action with respect to such requested exercise or transfer without first consulting with the
Company.

          Section 21.
Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign
and be discharged from its duties under this Agreement upon thirty (30) days’ notice in writing
mailed to the Company, and to each transfer agent of the Ordinary Shares, by registered or
certified mail, and, if such resignation occurs after the Distribution Date, to the registered
holders of the Rights Certificates by first-class mail. The Company may remove the Rights Agent or
any successor Rights Agent upon thirty (30) days’ notice in writing, mailed to the Rights Agent or
successor Rights Agent, as the case may be, and to each transfer agent of the Ordinary Shares, by
registered or certified mail, and, if such removal occurs after the Distribution Date, to the
holders of the Rights Certificates by first-class mail. If the Rights Agent shall resign or be
removed or shall otherwise become incapable of acting, the Company shall appoint a successor to the
Rights Agent. If the Company shall fail to make such appointment within a period of thirty (30)
days after giving notice of such removal or after it has been notified in writing of such
resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a
Rights Certificate (who shall, with such notice, submit his Rights Certificate for inspection by
the Company), then any registered holder of any Rights Certificate may apply to any

37

 

court of competent jurisdiction for the appointment of a new Rights Agent. Any successor
Rights Agent, whether appointed by the Company or by such a court, shall be (a) a Person
organized and doing business under the laws of the United States or any State thereof, in good
standing, which is authorized under such laws to exercise corporate trust, stock transfer or
shareholder services powers and which at the time of its appointment as Rights Agent has, or
with its parent has, a combined capital and surplus of at least $25,000,000 or (b) an
affiliate of a Person described in clause (a) of this sentence. After appointment, the
successor Rights Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent under this Agreement
without further act or deed; but the predecessor Rights Agent shall deliver and transfer to
the successor Rights Agent any property at the time held by it hereunder, and execute and
deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later
than the effective date of any such appointment, the Company shall file notice thereof in
writing with the predecessor Rights Agent and each transfer agent of the Ordinary Shares, and,
if such appointment occurs after the Distribution Date, mail a notice thereof in writing to
the registered holders of the Rights Certificates. Failure to give any notice provided for in
this Section 21, however, or any defect therein, shall not affect the legality or validity of
the resignation or removal of the Rights Agent or the appointment of the successor Rights
Agent, as the case may be.

          Section 22.
Issuance of New Rights Certificates. Notwithstanding any of the provisions of
this Agreement or of the Rights to the contrary, the Company may, at its option, issue new Rights
Certificates evidencing Rights in such form as may be approved by the Board to reflect any
adjustment or change in the Purchase Price and the number or kind or class of stock or other
securities or property purchasable under the Rights Certificates made in accordance with the
provisions of this Agreement. In addition, in connection with the issuance or sale of Ordinary
Shares following the Distribution Date and prior to the redemption or expiration of the Rights, the
Company (a) shall, with respect to Ordinary Shares so issued or sold pursuant to the exercise of
stock options or under any employee plan or arrangement, granted or awarded as of the Distribution
Date, or upon the exercise, conversion or exchange of securities hereinafter issued by the Company,
and (b) may, in any other case, if deemed necessary or appropriate by the Board, issue Rights
Certificates representing the appropriate number of Rights in connection with such issuance or
sale; provided, however, that (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 the Person to whom such Rights Certificate would be issued, and (ii) no such Rights
Certificate

38

 

shall be issued if, and to the extent that, appropriate adjustment shall otherwise have been made
in lieu of the issuance thereof.

          Section 23.
Redemption and Termination.

               (a) The Board may, at its option, at any time prior to the earlier of (i) the close of
business on the tenth Business Day following the Share Acquisition Date (or, if the Share
Acquisition Date shall have occurred prior to the Record Date, the close of business on the
tenth Business Day following the Record Date), or (ii) the Final Expiration Date, (x) redeem
all but not less than all of the then outstanding Rights at a redemption price of $0.001 per
Right (rounded up to the nearest whole $0.01 in the case of any holder whose holdings are not
in a multiple of ten), as such amount may be appropriately adjusted to reflect any stock
split, stock dividend or similar transaction occurring after the date hereof (such redemption
price being hereinafter referred to as the “Redemption
Price”) or (y) amend this Agreement to
change the Final Expiration Date to another date, including without limitation an earlier
date. Notwithstanding anything contained in this Agreement to the contrary, the Rights shall
not be exercisable after the first occurrence of a Section 11(a)(ii) Event until such time as
the Company’s right of redemption hereunder has expired. The Company may, at its option, pay
the Redemption Price in cash, Ordinary Shares (based on the Current Market Price, as defined
in Section 11(d)(i) hereof, of the Ordinary Shares at the time of redemption) or any other
form of consideration deemed appropriate by the Board.

               (b) Immediately upon the action of the Board ordering the redemption of the Rights,
evidence of which shall have been filed with the Rights Agent, and without any further action
and without any notice, the right to exercise the Rights will terminate and the only right
thereafter of the holders of Rights shall be to receive the Redemption Price for each Right
so held. Promptly after the action of the Board ordering the redemption of the Rights, the
Company shall give notice of such redemption to the Rights Agent and the holders of the then
outstanding Rights by mailing such notice to all such holders at each holder’s last address
as it appears upon the registry books of the Rights Agent or, prior to the Distribution Date,
on the registry books of the transfer agent for the Ordinary Shares. Any notice which is
mailed in the manner herein provided shall be deemed given, whether or not the holder
receives the notice. Each such notice of redemption will state the method by which the
payment of the Redemption Price will be made.

39

 

          Section 24.
Exchange.

               (a) The Board may, at its option, at any time after any Person becomes an Acquiring
Person, exchange all or part of the then outstanding and exercisable Rights (which shall not
include Rights that have become void pursuant to the provisions of Section 7(e) hereof) for
Ordinary Shares at an exchange ratio of one Ordinary Share per Right, appropriately adjusted
to reflect any stock split, stock dividend or similar transaction occurring after the date

hereof (such exchange ratio being hereinafter referred to as the
“Exchange Ratio”).
Notwithstanding the foregoing, the Board shall not be empowered to effect such exchange at any
time after any Person (other than the Company, any Subsidiary of the Company, any employee
benefit plan of the Company or any such Subsidiary, or any entity holding Ordinary Shares for
or pursuant to the terms of any such plan), together with all Affiliates and Associates of
such Person, becomes the Beneficial Owner of 50% or more of the Ordinary Shares then
outstanding.

               (b) Immediately upon the action of the Board ordering the exchange of any Rights pursuant to subsection (a) of this Section 24 and without any further action and
without any notice, the right to exercise such (i) Rights shall terminate and the only right
thereafter of a holder of such Rights shall be to receive that number of Ordinary Shares
equal to the number of such Rights held by such holder multiplied by the Exchange Ratio. The
Company shall promptly give public notice of any such exchange;
provided, however, that the
failure to give, or any defect in, such notice shall not affect the validity of such
exchange. The Company promptly shall mail a notice of any such exchange to all of the holders
of such Rights at their last addresses as they appear upon the registry books of the Rights
Agent. Any notice which is mailed in the manner herein provided shall be deemed given,
whether or not the holder receives the notice. Each such notice of exchange will state the
method by which the exchange of the Ordinary Shares for Rights will be effected and, in the
event of any partial exchange, the number of Rights which will be exchanged. Any partial
exchange shall be effected pro rata based on the number of Rights (other than Rights which
have become void pursuant to the provisions of Section 7(e) hereof) held by each holder of
Rights.

               (c) In the event that there shall not be sufficient Ordinary Shares issued but not
outstanding or authorized but unissued to permit any exchange of Rights, as the case may be,
as contemplated in accordance with this Section 24, the Company shall take all such action
as may be necessary to authorize additional Ordinary Shares for issuance upon exchange of
the Rights.

40

 

               (d) The Company shall not be required to issue fractions of Ordinary Shares or to
distribute certificates which evidence fractional Ordinary Shares. In lieu of such fractional
Ordinary Shares, there shall be paid to the registered holders of the Rights Certificates with
regard to which such fractional Ordinary Shares would otherwise be issuable, an amount in cash
equal to the same fraction of the current market value of a whole Ordinary Share. For the
purposes of this subsection (e), the current market value of a whole Ordinary Share shall be
the closing price of an Ordinary Share (as determined pursuant to the second sentence of
Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of exchange
pursuant to this Section 24.

          Section 25.
Notice of Certain Events.

               (a) In case the Company shall propose, at any time after the Distribution Date, (i) to
pay any dividend payable in shares of any class to the holders of Ordinary Shares or to make
any other distribution to the holders of Ordinary Shares (other than a regular quarterly cash
dividend out of earnings or retained earnings of the Company), or (ii) to offer to the holders
of Ordinary Shares rights or warrants to subscribe for or to purchase any additional Ordinary
Shares or shares of any class or any other securities, rights or options, or (iii) to effect
any reclassification of its Ordinary Shares (other than a reclassification involving only the
subdivision of outstanding Ordinary Shares), or (iv) to effect any consolidation, amalgamation
or merger into or with any other Person (other than a Subsidiary of the Company in a
transaction which complies with Section 11(o) hereof), or to effect any sale or other transfer
(or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one
transaction or a series of related transactions, of more than 50% of the assets, cash flow or
earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or
Persons (other than the Company and/or any of its Subsidiaries in one or more transactions
each of which complies with Section 11(o) hereof), or (v) to effect the liquidation,
dissolution or winding up of the Company, then, in each such case, the Company shall give to
the Rights Agent and to each holder of a Rights Certificate, to the extent feasible and in
accordance with Section 26 hereof, a notice of such proposed action, which shall specify the
record date for the purposes of such stock dividend, distribution of rights or warrants, or
the date on which such reclassification, consolidation, amalgamation, merger, sale, transfer,
liquidation, dissolution, or winding up is to take place and the date of participation therein
by the holders of the Ordinary Shares, if any such date is to be fixed, and such notice shall
be so given in the case of any action covered by clause (i) or (ii) above at least twenty (20) days prior to the record date for

41

 

determining holders of the Ordinary Shares for purposes of such action, and in the case
of any such other action, at least twenty (20) days prior to the date of the taking of such
proposed action or the date of participation therein by the holders of the Ordinary Shares,
whichever shall be the earlier.

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

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

SINA Corporation

2988 Campus Dr., Suite 100

San Mateo, CA 94403

United States of America

Attention: General Counsel

Fax: (1-650) 645-8650

Phone: (1-650) 638-9228

with a copy to:

42

 

SINA Corporation

Room 1802, United Plaza

1468 Nan Jing Road West

Shanghai 200040, China

Attention: Investor Relations

Fax: (86-21) 6267 1903

Phone: (86-21) 6289 5678

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

American Stock Transfer & Trust Company

59 Maiden Lane

New York, NY 10038

United States of America

Attention: Paula Caroppoli

Fax: (718) 236-4588

Phone: (212) 936-5100

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

          Section 27. Supplements and Amendments. Prior to the Distribution Date, the Company and the
Rights Agent shall, if the Company so directs, supplement or amend any provision of this Agreement
without the approval of any holders of certificates representing Ordinary Shares. From and after
the Distribution Date, the Company and the Rights Agent shall, if the Company so directs,
supplement or amend this Agreement without the approval of any holders of Rights Certificates in
order (i) to cure any ambiguity, (ii) to correct or supplement any provision contained herein which
may be defective or

43

 

inconsistent with any other provisions herein, (iii) to shorten or lengthen any time
period hereunder or (iv) to change or supplement the provisions hereunder in any manner which
the Company may deem necessary or desirable and which shall not adversely affect the interests
of the holders of Rights Certificates (other than an Acquiring Person or an Affiliate or
Associate of an Acquiring Person). Upon the delivery of a certificate from an appropriate
officer of the Company which states that the proposed supplement or amendment is in compliance
with the terms of this Section 27, the Rights Agent shall execute such supplement or
amendment. Prior to the Distribution Date, the interests of the holders of Rights shall be
deemed coincident with the interests of the holders of Ordinary Shares. Notwithstanding
anything herein to the contrary, this Agreement may not be amended (other than pursuant to
clauses (i) or (ii) of the preceding sentence) at a time when the Rights are not redeemable.

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

          Section 29. Determinations and Actions by the Board of Directors, etc. For all purposes
of this Agreement, any calculation of the number of Ordinary Shares or any other class of
capital stock outstanding at any particular time, including for purposes of determining the
particular percentage of such outstanding Ordinary Shares of which any Person is the
Beneficial Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of
the General Rules and Regulations under the Exchange Act. The Board 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 (including a determination to
redeem or not redeem the Rights or to amend the Agreement). All such actions, calculations,
interpretations and determinations (including, for purposes of clause (y) below, all omissions
with respect to the foregoing) which are done or made by the Board in good faith, shall (x) be
final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and
all other parties, and (y) not subject the Board, or any of the directors on the Board to any
liability to the holders of the Rights.

44

 

          Section 30. Benefits of this Agreement. Nothing in this Agreement shall be construed to give
to any Person other than the Company, the Rights Agent and the registered holders of the Rights
Certificates
(and, prior to the Distribution Date, registered holders of the Ordinary Shares) any legal or
equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and
exclusive benefit of the Company, the Rights Agent and the registered holders of the Rights
Certificates (and, prior to the Distribution Date, registered holders of the Ordinary Shares).

          Section 31. Severability. If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain
in full force and effect and shall in no way be affected, impaired or invalidated; provided,
however, that notwithstanding anything in this Agreement to the contrary, if any such term,
provision, covenant or restriction is held by such court or authority to be invalid, void or
unenforceable and the Board determines in its good faith judgment that severing the invalid
language from this Agreement would adversely affect the purpose or effect of this Agreement, the
right of redemption set forth in Section 23 hereof shall be reinstated and shall not expire until
the close of business on the tenth Business Day following the date of such determination by the
Board. Without limiting the foregoing, if any provision requiring a specific group of directors of
the Company to act is held to by any court of competent jurisdiction or other authority to be
invalid, void or unenforceable, such determination shall then be made by the Board in accordance
with applicable law and the Company’s Amended and Restated Memorandum of Association and Amended
and Restated Articles of Association.

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

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

45

 

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

46

 

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

	 	 	 	 	 	 	 	 	 	 	 
	Attest:	 	SINA CORPORATION
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	/s/ Charles Chao	 	By	 	/s/ Yan Wang	 	 	 	 
	

	 	 
	 	 	 	 	 	 	 	 
	

	 	  Name: Charles Chao
	 	 	 	  Name: Yan Wang	 	 	 	 
	

	 	  Title: CFO and Secretary
	 	 	 	  Title: CEO	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	Attest:	 	American Stock Transfer & Trust

Company, as Rights Agent
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	/s/ Susan Silber	 	By	 	/s/ Herbert J. Lemmer	 	 	 	 
	

	 	 
	 	 	 	 	 	 	 	 
	

	 	  Name: Susan Silber
	 	 	 	  Name: Herbert J. Lemmer	 	 	 	 
	

	 	  Title: Assistant Secretary
	 	 	 	  Title: Vice President	 	 	 	 

 

 

Exhibit A

[Form of Rights Certificate]

Certificate No. R-

________ Rights

NOT EXERCISABLE AFTER FEBRUARY 22, 2015, UNLESS EXTENDED PRIOR THERETO BY THE BOARD OF DIRECTORS OF
THE COMPANY, OR EARLIER IF REDEEMED BY THE COMPANY. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE
OPTION OF THE COMPANY, AT $0.001 PER RIGHT ON THE TERMS SET FORTH IN THE RIGHTS
AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON (AS
SUCH TERM IS DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME
NULL AND VOID. [THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY
A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON
(AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE
RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e)
OF SUCH AGREEMENT.]1

Rights Certificate

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

 

 

SINA CORPORATION

     This certifies that                                         , or registered assigns, is the registered
owner of the number of Rights set forth above, each of which entitles the owner thereof,
subject to the terms, provisions and conditions of the Rights Agreement, dated as of February
22, 2005 (the “Rights Agreement”), between SINA Corporation, a Cayman Islands exempted
company (the “Company”), and American Stock Transfer & Trust Company, a New York bank (the
“Rights Agent”), to purchase from the Company at any time prior to 5:00 P.M. (New York City
time) on February 22, 2015 (unless such date is extended prior thereto by the Board of
Directors) at the office or offices of the Rights Agent designated for such purpose, or its
successors as Rights Agent, one fully paid, non-assessable ordinary share, par value $0.133
per share, of the Company (the “Ordinary Shares”), at a purchase price of $150 per share (the
“Purchase Price”), upon presentation and surrender of this Rights Certificate with the Form
of Election to Purchase and related Certificate duly executed. The number of Rights evidenced
by this Rights Certificate (and the number of shares which may be purchased upon exercise
thereof) set forth above, and the Purchase Price per share set forth above, are the number
and Purchase Price as of March 7, 2005, based on the Ordinary Shares as constituted at such
date. The Company reserves the right to require prior to the occurrence of a Triggering Event
(as such term is defined in the Rights Agreement) that a number of Rights be exercised so
that only whole Ordinary Shares will be issued.

          Upon the occurrence of a Section 11(a)(ii) Event (as such term is defined in the Rights
Agreement), if the Rights evidenced by this Rights Certificate are beneficially owned by (i)
an Acquiring Person or an Affiliate or Associate of any such Acquiring Person (as such terms
are defined in the Rights Agreement), (ii) a transferee of any such Acquiring Person,
Associate or Affiliate, or (iii) under certain circumstances specified in the Rights
Agreement, a transferee of a person who, after such transfer, became an Acquiring Person, or
an Affiliate or Associate of an Acquiring Person, such Rights shall become null and void and
no holder hereof shall have any right with respect to such Rights from and after the
occurrence of such Section 11(a)(ii) Event.

          As provided in the Rights Agreement, the Purchase Price and the number and kind of Ordinary
Shares or other securities, which may be purchased upon the

A-2

 

exercise of the Rights evidenced by this Rights Certificate are subject to modification and
adjustment upon the happening of certain events, including Triggering Events.

          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, which
limitations of rights include the temporary suspension of the exercisability of such Rights
under the specific circumstances set forth in the Rights Agreement. Copies of the Rights
Agreement are on file at the above-mentioned office of the Rights Agent and are also available
upon written request to the Rights Agent.

          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 and date evidencing Rights entitling the
holder to purchase a like aggregate number of Ordinary Shares as the Rights evidenced by the
Rights Certificate or Rights Certificates surrendered shall have entitled such holder to
purchase. If this Rights Certificate shall be exercised in part, the 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, the Rights evidenced by this
Certificate may be redeemed by the Company at its option at a redemption price of $0.001 per
Right at any time prior to the earlier of the close of business on (i) the tenth Business Day
following the Share Acquisition Date (as such time period may be extended pursuant to the
Rights Agreement), and (ii) the Final Expiration Date. In addition, under certain
circumstances following the Share Acquisition Date, the Rights may be exchanged, in whole or
in part, for Ordinary Shares or preference shares of the Company having essentially the same
value or economic rights as such shares. Immediately upon the action of the Board of Directors
of the Company authorizing any such exchange, and without any further action or any notice,
the Rights (other than Rights which are not subject to such exchange) will terminate and the
Rights will only enable holders to receive the shares issuable upon such exchange.

A-3

 

          No fractional Ordinary Shares will be issued upon the exercise of any Right or Rights
evidenced hereby (other than fractions which are integral multiples of one Ordinary Share,
which may, at the election of the Company, be evidenced by depositary receipts), but in lieu
thereof a cash payment will be made, as provided in the Rights Agreement. The Company, at
its election, may require that a number of Rights be exercised so that only whole Ordinary
Shares would be issued.

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

A-4

 

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

Dated as of ______ __, ____

	 	 	 	 	 
	ATTEST:	 	SINA CORPORATION
	 
	 	 	 	 
	

	 	By	 	 
	 

	 	 	 	 
	Secretary

	 	 	 	     Title:

Countersigned:

American Stock Transfer & Trust Company

as Rights Agent

	 	 	 	 	 
	By
	 	 	 	 
	

	 	 
	 	 
	

	 	Authorized Signature	 	 

A-5

 

[Form of Reverse Side of Rights Certificate]

FORM OF ASSIGNMENT

(To be executed by the registered holder if such

holder desires to transfer the 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                                          Attorney, to transfer the within Rights
Certificate on the books of the within named Company, with full power of substitution. Dated:
                                        ,___

	 	 	 
	

	 	                                                                                
	

	 	Signature

Signature Guaranteed:

A-6

 

Certificate

          The undersigned hereby certifies by checking the appropriate boxes that:

          (1) this Rights Certificate [ ] is [ ] is not being sold, assigned and transferred by or on
behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such
Acquiring Person (as such terms are defined pursuant to the Rights Agreement);

          (2) after due inquiry and to the best knowledge of the undersigned, it [ ] did [ ] did not
acquire the Rights evidenced by this Rights Certificate from any Person who is, was or
subsequently became an Acquiring Person or an Affiliate or Associate of an Acquiring Person.

	 	 	 	 	 
	Dated:

	 	                                        ,      
	 	                                                                                
	

	 	 	 	Signature

Signature Guaranteed:

A-7

 

NOTICE

               The signature to the foregoing Assignment and Certificate must correspond to the name as
written upon the face of this Rights Certificate in every particular, without alteration or
enlargement or any change whatsoever.

A-8

 

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires to exercise Rights repre-

sented by the Rights Certificate.)

To: SINA CORPORATION:

               The undersigned hereby irrevocably elects to exercise                      Rights represented by this
Rights certificate to purchase the Ordinary Shares issuable upon the exercise of the Rights (or
such other securities of the Company or of any other person which may be issuable upon the
exercise of the Rights) and requests that certificates for such shares be issued in the name of
and delivered to:

	 	 	 
	Please insert social security
	 	 
	 
	 	 
	or other identifying number
	 	 
	 
	 	 
	 
	

	 	(Please print name and address)
	 
	 	 
	 

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

Please insert social security

or other identifying number

A-9

 

	 	 	 
	 
	

	 	(Please print name and address)
	 
	 	 
	 
	 
	 	 
	 

Dated: _______________,__

	 	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	Signature

Signature Guaranteed:

Certificate

               The undersigned hereby certifies by checking the appropriate boxes that:

               (1) the Rights evidenced by this Rights Certificate [ ] are [ ] are not being exercised
by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of
any such Acquiring Person (as such terms are defined pursuant to the Rights Agreement);

               (2) after due inquiry and to the best knowledge of the undersigned, it [ ] did [ ] did not
acquire the Rights evidenced by this Rights Certificate from any Person who is, was or became an
Acquiring Person or an Affiliate or Associate of an Acquiring Person.

A-10

 

Dated: _______________,__

	 	 	 	 	 
	 	 	 
	

	 	Signature	 	 

Signature Guaranteed:

A-11

 

NOTICE

               The signature to the foregoing Election to Purchase and Certificate must correspond to
the name as written upon the face of this Rights Certificate in every particular, without
alteration or enlargement or any change whatsoever.

A-12

 

Exhibit B

SUMMARY OF RIGHTS

               On
February 22, 2005 (the “Rights Issuance Authorization
Date”), the Board of Directors (the “Board”) of
SINA Corporation (the “Company”) authorized the issuance of one right (a “Right”) for each
outstanding ordinary share, par value $0.133 per share, of the Company (the “Ordinary
Shares”) to shareholders of record at the close of business on March 7, 2005 (the “Record
Date”). Each Right entitles the registered holder to purchase from the Company one Ordinary
Share at a Purchase Price of $150 per Ordinary Share, subject to adjustment (the “Purchase
Price”). The description and terms of the Rights are set forth in a Rights Agreement (the
“Rights Agreement”), dated as of February 22, 2005, between the Company and American Stock
Transfer & Trust Company, a New York bank, as Rights Agent.

               Initially, the Rights will be attached to all Ordinary Shares then outstanding, and no
separate certificates evidencing the Rights (the “Rights Certificates”) will be distributed.
Subject to certain exceptions specified in the Rights Agreement, the Rights will separate from
the Ordinary Shares and a distribution date (the “Distribution Date”) will occur upon the
earlier of (i) 10 business days following a public announcement that a person or group of
affiliated or associated persons (an “Acquiring Person”) has acquired beneficial ownership of
10% or more of the Company’s Ordinary Shares (the “Share Acquisition Date”), other than as a result of
repurchases of shares by the Company or purchases by certain Exempt Persons (as defined below)
or (ii) 10 business days (or such later date as the Board shall determine) following the
commencement of a tender offer or exchange offer that would result in a person or group
becoming an Acquiring Person. An “Exempt Person” means any of the following: (a) Shanda
Interactive Entertainment Limited, a Cayman Islands limited company, (b) Skyline Media
Limited, a British Virgin Islands limited company, (c) Skyline Capital International Limited,
a British Virgin Islands limited company, (d) Shanda Media Limited, a British Virgin Islands limited company, and (e) Tianqiao Chen, a citizen of the Peoples Republic
of China, but, with respect to clauses (a) through (e) of this paragraph, each such Exempt
Person shall be considered an Exempt Person only to the extent that the Ordinary Shares
beneficially owned by each such Exempt Person do not exceed the number of shares (A) which
both (1) are beneficially owned by such Exempt Person on

 

 

the Rights Issuance Authorization Date and (2) have been publicly disclosed as being
beneficially owned by such Exempt Person (in a filing with the U.S. Securities and Exchange
Commission or in a press release of such Exempt Person) on or prior to the Rights Issuance
Authorization Date, plus (B) any additional Ordinary Shares representing, in the aggregate
for all persons in clauses (a) through (e) of this paragraph (together with their Affiliates
and Associates), not more than one half of one percent (0.5%) of the Ordinary Shares then
outstanding.

               Until the Distribution Date, (i) the Rights will be evidenced by the Ordinary Share
certificates and will be transferred with and only with such Ordinary Share certificates, (ii)
new Ordinary Share certificates issued after the Record Date will contain a notation
incorporating the Rights Agreement by reference and (iii) the surrender for transfer of any
certificates for Ordinary Shares outstanding will also constitute the transfer of the Rights
associated with the Ordinary Shares represented by such certificate. Pursuant to the Rights
Agreement, the Company reserves the right to require prior to the occurrence of a Triggering
Event (as defined below) that, upon any exercise of Rights, a number of Rights be exercised so
that only whole Ordinary Shares will be issued.

               The Rights are not exercisable until the Distribution Date and will expire at 5:00 P.M. (New
York City time) on February 22, 2015 (the “Final Expiration Date”), unless the Rights Agreement is
earlier terminated or such date is extended or the Rights are earlier redeemed or exchanged by the
Company as described below.

               As soon as practicable after the Distribution Date, Rights Certificates will be mailed
to holders of record of the Ordinary Shares as of the close of business on the Distribution
Date and, thereafter, the separate Rights Certificates alone will represent the Rights.

               In the event that a Person becomes an Acquiring Person, each holder of a Right will
thereafter have the right to receive, upon exercise, Ordinary Shares (or, in certain
circumstances, cash, property or other securities of the Company) having a value equal to two
times the Purchase Price of the Right. Notwithstanding any of the foregoing, following the
occurrence of the event described in this paragraph, all Rights that are, or (under certain
circumstances specified in the Rights Agreement) were, beneficially owned by any Acquiring
Person will be null and void. However, Rights are not exercisable following the occurrence of
the event set forth above until such time as the Rights are no longer redeemable by the
Company as set forth below.

B-2

 

               For example, at a Purchase Price of $150 per Right, each Right not owned by an Acquiring
Person (or by certain related parties) following the event described in the preceding
paragraph would entitle its holder to purchase $300 worth of Ordinary Shares (or other
consideration, as noted above) for $150. Assuming that the Ordinary Shares had a per share
value of $50 at such time, the holder of each valid Right would be entitled to purchase six
Ordinary Shares for $150.

               In the event that, at any time following the Share Acquisition Date,(i) the Company
engages in a merger, amalgamation or other business combination transaction in which the
Company is not the surviving corporation, (ii) the Company engages in a merger, amalgamation
or other business combination transaction in which the Company is the surviving corporation
and the Ordinary Shares of the Company are changed or exchanged, or (iii) 50% or more of the Company’s assets, cash flow
or earning power is sold or transferred, each holder of a Right (except Rights which have
previously been voided as set forth above) shall thereafter have the right to receive, upon
exercise, ordinary shares of the acquiring company having a value equal to two times the
Purchase Price of the Right. The events set forth in this paragraph and in the second
preceding paragraph are referred to as the “Triggering Events.”

               At any time after a person becomes an Acquiring Person and prior to the acquisition by
such person or group of 50% or more of the outstanding Ordinary Shares, the Board may
exchange the Rights (other than Rights owned by such person or group which have become void),
in whole or in part, for Ordinary Shares at an exchange ratio of one Ordinary Share per Right (subject to adjustment).

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

B-3

 

               With certain exceptions, no adjustment in the Purchase Price will be required until
cumulative adjustments amount to at least one percent (1%) of the Purchase Price. No
fractional Ordinary Shares will be issued and, in lieu thereof, an adjustment in cash will be
made based on the market price of the Ordinary Shares on the last trading date prior to the
date of exercise.

               At
any time until 10 business days following the Share Acquisition Date, the Company may
redeem the Rights in whole, but not in part, at a price of $0.001 per Right (payable in cash,
Ordinary Shares or other consideration deemed appropriate by the Board) or amend
the Rights Agreement to change the Final Expiration Date to another date, including, without
limitation, an earlier date. Immediately upon the action of the Board ordering
redemption of the Rights, the Rights will terminate and the only right of the holders of
Rights will be to receive the $0.001 redemption price.

               Until a Right is exercised, the holder thereof, as such, will have no separate rights as
a shareholder of the Company, including, without limitation, the right to vote or to receive
dividends in respect of the Rights. While the distribution of the Rights will not be taxable
to shareholders or to the Company, shareholders may, depending upon the circumstances,
recognize taxable income in the event that the Rights become exercisable for Ordinary Shares
(or other consideration) of the Company or for ordinary shares of the acquiring company or in
the event of the redemption of the Rights as set forth above.

               Any of the provisions of the Rights Agreement may be amended by the Board
of the Company prior to the Distribution Date. After the Distribution Date, the provisions of
the Rights Agreement may be amended by the Board in order to cure any ambiguity, to make
changes that do not adversely affect the interests of holders of Rights, or to shorten or
lengthen any time period under the Rights Agreement. The foregoing notwithstanding, no
amendment may be made at such time as the Rights are not redeemable.

               A copy of the Rights Agreement has been or will be filed with the Securities and Exchange Commission as an Exhibit to a Registration Statement on Form 8-A of the Company
and as an Exhibit to a Current Report on Form 8-K. A copy of the Rights Agreement is available free
of charge from the Rights Agent. This summary description of the Rights does not purport to
be complete and is qualified in its entirety by reference to the Rights Agreement, which is
incorporated herein by reference.

B-4

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