Document:

EXHIBIT 4.1

     

     

      
        

      

    

    
      Exhibit
        4.1

    

    

    

    AMENDMENT
      NO. 1 TO RIGHTS AGREEMENT

    

    THIS
      AMENDMENT NO. 1 (this “Amendment”) is entered into and dated as of
      October 16, 2006, by and between Cree, Inc., a North Carolina corporation
      (the “Company”), and American Stock Transfer & Trust Company, as Rights
      Agent (the “Rights Agent”).

    

    WHEREAS,
      the Company and the Rights Agent are parties to a Rights Agreement dated as
      of
      May 30, 2002 (the “Rights Agreement”), specifying the terms of certain Rights
      (as defined therein);

     

    WHEREAS,
      Section 27 of the Rights Agreement authorizes the Company and the Rights Agent
      to amend the Rights Agreement as contemplated by this Amendment;
      and

     

    WHEREAS,
      the Board of Directors of the Company has approved the amendment of the Rights
      Agreement and the execution and delivery of this Amendment; 

     

    NOW,
      THEREFORE, for good and valuable consideration, the parties hereby agree as
      follows:

    

    1. The
      Rights Agreement is hereby amended by adding the following new Section 35 at
      the
      end of the Rights Agreement.

    

    Section
      35. Review
      by Independent Directors.
      All
      members of the Board of Directors who are deemed “independent” under the Nasdaq
      listing standards (the “Independent Directors”) shall review and evaluate this
      Agreement in order to consider whether the maintenance of this Agreement
      continues to be in the best interests of the Company and its shareholders,
      at
      least every three (3) years and prior to any Distribution Date. Following each
      such review and evaluation, the Independent Directors shall communicate their
      conclusion to the full Board of Directors, including any recommendation in
      light
      thereof, including as to whether this Agreement should be modified or the Rights
      should be redeemed. In connection with such review and evaluation, the
      Independent Directors shall have the power and authority to (i) set their own
      agenda and to retain at the expense of the Company their choice of legal
      counsel, investment bankers and other advisors and (ii) to review all
      information of the Company and to consider any and all factors they deem
      relevant.

    

    2. From
      and
      after the date hereof, all reference in the Rights Agreement to “Agreement”
shall mean and refer to the Rights Agreement, as modified by this Amendment,
      and, except as set forth herein, the Rights Agreement shall remain in full
      force
      and effect and shall be otherwise unaffected by this Amendment. This Amendment
      shall be deemed to be a contract made under the laws of the State of North
      Carolina 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 and without regard to conflicts of laws principles.
      This Amendment may be executed in any number of counterparts, 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. If any term,
      provision, covenant or restriction of this Amendment 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
      Amendment shall remain in full force and effect and shall in no way be affected,
      impaired or invalidated.

    

    (signature
      on following page)

    
      
         

        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

    (Signature
      Page to the Amendment No. 1 to Rights Agreement)

    

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

    

      
        	 	
                CREE,
                  INC.

              
	 	 	 	 
	 	 	 	 
	 	
                By:
                  

              	 	/s/
                Charles M. Swoboda
	 	Name:	 	
                Charles
                  M. Swoboda

              
	 	Title:	 	
                Chairman,
                  CEO & President

              

      

    

     

     

     

     

    
      	 	
              AMERICAN
                STOCK TRANSFER & TRUST COMPANY

            
	 	 	 	 
	 	 	 	 
	 	
              By:
                

            	 	/s/
              Herbert J. Lemmer
	 	Name:	 	
              Herbert
                J. Lemmer

            
	 	Title:	 	
              Vice President

            

    

    
      

       

       

      
        
          
          

        

        
          -
            3
            -EXHIBIT 4.02

     

     

      
        

      

    

     

    Exhibit
      4.02

    
 

    AMENDMENT
      NO. 1 TO RIGHTS AGREEMENT

    

    THIS
      AMENDMENT NO. 1 (this “Amendment”) is entered into and dated as of
      October 16, 2006, by and between Cree, Inc., a North Carolina corporation
      (the “Company”), and American Stock Transfer & Trust Company, as Rights
      Agent (the “Rights Agent”).

    

    WHEREAS,
      the Company and the Rights Agent are parties to a Rights Agreement dated as
      of
      May 30, 2002 (the “Rights Agreement”), specifying the terms of certain Rights
      (as defined therein);

     

    WHEREAS,
      Section 27 of the Rights Agreement authorizes the Company and the Rights Agent
      to amend the Rights Agreement as contemplated by this Amendment;
      and

     

    WHEREAS,
      the Board of Directors of the Company has approved the amendment of the Rights
      Agreement and the execution and delivery of this Amendment; 

     

    NOW,
      THEREFORE, for good and valuable consideration, the parties hereby agree as
      follows:

    

    1. The
      Rights Agreement is hereby amended by adding the following new Section 35 at
      the
      end of the Rights Agreement.

    

    Section
      35. Review
      by Independent Directors.
      All
      members of the Board of Directors who are deemed “independent” under the Nasdaq
      listing standards (the “Independent Directors”) shall review and evaluate this
      Agreement in order to consider whether the maintenance of this Agreement
      continues to be in the best interests of the Company and its shareholders,
      at
      least every three (3) years and prior to any Distribution Date. Following each
      such review and evaluation, the Independent Directors shall communicate their
      conclusion to the full Board of Directors, including any recommendation in
      light
      thereof, including as to whether this Agreement should be modified or the Rights
      should be redeemed. In connection with such review and evaluation, the
      Independent Directors shall have the power and authority to (i) set their own
      agenda and to retain at the expense of the Company their choice of legal
      counsel, investment bankers and other advisors and (ii) to review all
      information of the Company and to consider any and all factors they deem
      relevant.

    

    2. From
      and
      after the date hereof, all reference in the Rights Agreement to “Agreement”
shall mean and refer to the Rights Agreement, as modified by this Amendment,
      and, except as set forth herein, the Rights Agreement shall remain in full
      force
      and effect and shall be otherwise unaffected by this Amendment. This Amendment
      shall be deemed to be a contract made under the laws of the State of North
      Carolina 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 and without regard to conflicts of laws principles.
      This Amendment may be executed in any number of counterparts, 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. If any term,
      provision, covenant or restriction of this Amendment 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
      Amendment shall remain in full force and effect and shall in no way be affected,
      impaired or invalidated.

    

    (signature
      on following page)

    
      
         

        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

    (Signature
      Page to the Amendment No. 1 to Rights Agreement)

    

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

     

     

    
      	 	
              CREE,
                INC.

            
	 	 	 	 
	 	 	 	 
	 	
              By:
                

            	 	/s/
              Charles M. Swoboda
	 	
              Name:
                

            	 	
              Charles
                M. Swoboda

            
	 	
              Title:
                
 	 	
              
                Chairman,
                  CEO and President

              

            

    

     

     

    

    
      	 	
              AMERICAN
                STOCK TRANSFER & TRUST COMPANY

            
	 	 	 	 
	 	 	 	 
	 	
              By:
                

            	 	/s/
              Herbert J. Lemmer
	 	
              Name:
                

            	 	
              Herbert
                J. Lemmer

            
	 	
              Title:
                
 	 	
              
                Vice
                  President

              

            

    

     

     

    
      
        
        

      

      
        -
          3
          -

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