Document:

Exhibit 4.7

 

 

DYNCORP INTERNATIONAL INC.

and

The Bank of New York,

as Rights Agent

 

Rights Agreement

Dated as of May 3, 2006

 

 

 

TABLE OF CONTENTS

	
  

  	
   

  	
  

  	
   

  	
  Page

  
	
  Section 1.

  	
   

  	
  Certain Definitions

  	
   

  	
  1

  
	
  Section 2.

  	
   

  	
  Appointment of Rights Agent

  	
   

  	
  6

  
	
  Section 3.

  	
   

  	
  Issuance of Rights Certificates

  	
   

  	
  6

  
	
  Section 4.

  	
   

  	
  Form of Rights Certificates

  	
   

  	
  8

  
	
  Section 5.

  	
   

  	
  Countersignature and Registration

  	
   

  	
  9

  
	
  Section 6.

  	
   

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

  	
   

  	
  10

  
	
  Section 7.

  	
   

  	
  Exercise of Rights; Purchase Price; Expiration Date
  of Rights

  	
   

  	
  10

  
	
  Section 8.

  	
   

  	
  Cancellation of Rights Certificates

  	
   

  	
  12

  
	
  Section 9.

  	
   

  	
  Reservation and Availability of Capital Stock

  	
   

  	
  13

  
	
  Section 10.

  	
   

  	
  Preferred Stock Record Date

  	
   

  	
  14

  
	
  Section 11.

  	
   

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

  	
   

  	
  14

  
	
  Section 12.

  	
   

  	
  Certificate of Adjusted Purchase Price or Number of
  Shares

  	
   

  	
  21

  
	
  Section 13.

  	
   

  	
  Consolidation, Merger or Sale or Transfer of Assets,
  Cash Flow Or Earning Power

  	
   

  	
  22

  
	
  Section 14.

  	
   

  	
  Fractional Rights and Fractional Shares

  	
   

  	
  24

  
	
  Section 15.

  	
   

  	
  Rights of Action

  	
   

  	
  26

  
	
  Section 16.

  	
   

  	
  Agreement of Rights Holders

  	
   

  	
  26

  
	
  Section 17.

  	
   

  	
  Rights Certificate Holder Not Deemed a Stockholder

  	
   

  	
  27

  
	
  Section 18.

  	
   

  	
  Concerning the Rights Agent

  	
   

  	
  27

  
	
  Section 19.

  	
   

  	
  Merger or Consolidation or Change of Name of Rights
  Agent

  	
   

  	
  28

  
	
  Section 20.

  	
   

  	
  Duties of Rights Agent

  	
   

  	
  28

  
	
  Section 21.

  	
   

  	
  Change of Rights Agent

  	
   

  	
  31

  
	
  Section 22.

  	
   

  	
  Issuance of New Rights Certificates

  	
   

  	
  31

  
	
  Section 23.

  	
   

  	
  Redemption and Termination

  	
   

  	
  32

  
	
  Section 24.

  	
   

  	
  Exchange

  	
   

  	
  32

  
	
  Section 25.

  	
   

  	
  Notice of Certain Events

  	
   

  	
  34

  
	
  Section 26.

  	
   

  	
  Notices

  	
   

  	
  35

  
	
  Section 27.

  	
   

  	
  Supplements and Amendments

  	
   

  	
  36

  
	
  Section 28.

  	
   

  	
  Successors

  	
   

  	
  36

  
	
  Section 29.

  	
   

  	
  Determinations and Actions by the Board, Etc

  	
   

  	
  36

  
	
  Section 30.

  	
   

  	
  No Third Party Beneficiaries

  	
   

  	
  37

  
	
  Section 31.

  	
   

  	
  Severability

  	
   

  	
  37

  
	
  Section 32.

  	
   

  	
  Governing Law; Jurisdiction; Waiver of Jury Trial

  	
   

  	
  37

  
	
  Section 33.

  	
   

  	
  Counterparts

  	
   

  	
  37

  
	
  Section 34.

  	
   

  	
  Descriptive Headings

  	
   

  	
  37

  

 

 i

RIGHTS AGREEMENT

RIGHTS AGREEMENT, dated as of May 3, 2006 (the “Agreement”),
between DynCorp International Inc., a Delaware corporation (the “Company”), and
The Bank of New York, a New York trust company (the “Rights Agent”).

WHEREAS, on  May 3,
2006, the Board of Directors of the Company (the “Board”) authorized and
declared as a dividend of one Right (as hereinafter defined) for each share of Class A
Common Stock, par value $.01, of the Company (the “Class A Common Stock”)
outstanding at the close of business on May 9, 2006 (the “Record Date”),
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
share of Class A Common Stock of the Company issued between the Record
Date (whether originally issued or delivered from the Company’s treasury) and
the earliest of the Close of Business on the Distribution Date, the Redemption
Date and the Close of Business on the Final Expiration Date (as such terms are
hereinafter defined) each Right initially representing the right to purchase
one one-thousandth of a share of Series B Junior Participating Preferred
Stock of the Company (the “Preferred Stock”) having the rights, powers and
preferences set forth in the form of Certificate of Designation, Preferences
and Rights attached hereto as Exhibit A, upon the terms and subject to the
conditions hereinafter set forth (each a “Right” and collectively the “Rights”);
provided, however, that Rights may be
issued with respect to shares of Class A Common Stock that shall become
outstanding after the Distribution Date and prior to the earlier of the
Redemption Date and the Close of Business on the Final Expiration Date in
accordance with the provisions of Section 22 of the Agreement;

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 Associates and Affiliates
of such Person, shall be the Beneficial Owner of 15% or more of shares of Class A
Common Stock then outstanding, but shall not include (i) any Exempted
Entity, (ii) the Company, (iii) any Subsidiary of the Company, (iv) 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 or (v) any Person who becomes the
Beneficial Owner of 15% or more of the shares of Class A Common Stock then
outstanding as a result of a reduction in the number of shares of Class A
Common Stock outstanding due to the repurchase of shares of Class A Common
Stock by the Company unless and until such Person, after becoming aware that
such Person has become the Beneficial Owner of 15% or more of the then
outstanding shares of Class A Common Stock, acquires beneficial ownership
of additional shares of Class A Common Stock representing 1% or more of
the shares of Class A Common Stock then outstanding. Notwithstanding the
foregoing, (i)  if the Board
determines in good faith that a Person who would otherwise be an “Acquiring
Person” became the Beneficial Owner of a number of shares of Class A
Common Stock such that the Person would otherwise qualify as an “Acquiring
Person” inadvertently (including, without limitation,

 

because (A) such
Person was unaware that it beneficially owned a percentage of Class A
Common Stock that would otherwise cause such Person to be an “Acquiring Person”
or (B) such Person was aware of the extent of its Beneficial Ownership of Class A
Common stock but had no actual knowledge of the consequences of such Beneficial
Ownership under this Agreement) and without any intention of changing or
influencing control of the Company, then such Person shall not be deemed to be
or to have become an “Acquiring Person” for any purposes of this Agreement
unless and until such Person shall have failed to divest itself, as soon as
practicable (as determined, in good faith, by the Board), of Beneficial
Ownership of a sufficient number of shares of Class A Common Stock so that
such Person would no longer otherwise qualify as an “Acquiring Person” and (ii) if as of the date hereof or
prior to the first public announcement of the adoption of this Agreement, any
Person is or becomes the Beneficial Owner of 15% or more of the shares of Class A
Common Stock outstanding, such Person shall not be deemed to be or to become an
“Acquiring Person” unless and until such time as such Person shall, after the
first public announcement of the adoption of this Agreement, become the
Beneficial Owner of additional shares of Class A Common Stock (other than
pursuant to a dividend or distribution paid or made by the Company on the
outstanding Class A Common Stock or pursuant to a split or subdivision of
the outstanding Class A Common Stock), unless, upon becoming the
Beneficial Owner of such additional shares of Class A Common Stock, such Person
is not then the Beneficial Owner of 15% or more of the shares of Common Stock
then outstanding.

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

(c)           “Adjustment Shares”
shall have the meaning set forth in Section 11(a)(ii) hereof.

(d)           “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.

(e)           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) pursuant to any agreement,
arrangement or understanding (whether or not in writing) or upon the exercise
of conversion rights, exchange rights, rights, warrants or options, or
otherwise; provided, however, that a Person shall
not be deemed the “Beneficial Owner” of, or to “beneficially own,” (A) securities
tendered pursuant to a tender or exchange offer made by or on behalf of such
Person or any of such Person’s Affiliates or Associates until such tendered
securities are accepted for purchase 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 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;

 2
 

 

(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 (e)) or disposing of any voting
securities of the Company; provided, however,
that nothing in this paragraph (e) 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
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 days. Notwithstanding
anything in this definition of Beneficial Ownership to the contrary, the phrase
“then outstanding,” when used with reference to a Person’s Beneficial Ownership
of the securities of the Company, shall mean the number of such securities then
issued and outstanding together with the number of such securities not then
actually issued and outstanding which such Person would be deemed to own
beneficially hereunder.

(f)            “Certificate of
Incorporation” shall mean the Amended and Restated Certificate of Incorporation
of the Company as it in turn may be amended, restated or otherwise modified
from time to time.

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

(h)           “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.

(i)            “Class A
Common Stock” shall mean the Class A Common Stock, $0.01 par value, of the
Company, except that “Class A Common Stock” when used with reference to
any Person other than the Company shall mean the capital stock with the
greatest voting power of such Person, or the equity securities or other equity
interest having power to control or direct the management, of such Person.

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

 3
 

 

(k)           “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.

(l)            “Company” shall
have the meaning set forth in the preamble of this Agreement, as it may be
modified by Section 13(a) hereof.

(m)          “Current Market Price”
shall have the meaning and be computed as set forth in Section 11(d)(i) hereof.

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

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

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

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

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

(s)           “Exempted Entity”
shall mean:  (1) any Veritas Entity,
(2) any transferee of any Veritas Entity that acquires directly from any
such Veritas Entity 15% or more of the then outstanding Class A Common
Stock (a “Non-Veritas Exempted Entity”), (3) any transferee of any
Non-Veritas Exempted Entity that acquires directly from any Non-Veritas
Exempted Entity 15% or more of the then outstanding Class A Common Stock
(a “Non-Veritas Exempted Entity Transferee”) and (4) any Person who or
which is the Beneficial Owner of Class A Common Stock beneficially owned
by an Exempted Entity; provided, however,
that any Non-Veritas Entity, any Non-Veritas Exempted Entity and any
Non-Veritas Exempted Entity Transferee shall cease to be an Exempted Entity as
of the date that such Non-Veritas Entity, Non-Veritas Exempted Entity or
Non-Veritas Exempted Entity Transferee ceases to beneficially own 15% or more
of the shares of the then outstanding Class A Common Stock.

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

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

(v)           “NYSE” shall mean
the New York Stock Exchange.

(w)          “NASDAQ” shall mean
the National Association of Securities Dealers Automated Quotation System.

(x)            “Person” shall mean
any individual, firm, corporation, partnership, limited liability company or
other entity.

 4
 

 

(y)           “Preferred Stock”
shall mean shares of Series B Junior Participating Preferred Stock, par
value $0.01 per share, of the Company.

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

(aa)         “Purchase Price”
shall have the meaning set forth in Sections 4(a) and 11(a)(ii) hereof.

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

(cc)         “Redemption Date”
shall have the meaning set forth in Section 23(b) hereof.

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

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

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

(gg)         “Rights Certificates”
shall have the meaning set forth in Section 3(a) hereof

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

(ii)           “Section 1l(a)(ii) Trigger
Date” shall have the meaning set forth in Section 11(a)(iii) hereof.

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

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

(ll)           “Stock Acquisition
Date” shall mean the earlier of the date of (i) 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 or (ii) the public disclosure of facts by the
Company or an Acquiring Person indicating that a Person has become such.

(mm)       “Subsidiary” of any
Person shall mean any corporation or other Person in which such Person
beneficially owns, directly or indirectly, an amount of voting securities
sufficient to elect at least a majority of the directors or otherwise control,
directly or indirectly, the management of such corporation or Person.

 5
 

 

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

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

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

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

(rr)           “Veritas Entity”
shall mean any of Veritas Capital Management, L.P., The Veritas Capital Fund,
L.P., Veritas Capital Management II, L.L.C. or any Affiliate of any thereof,
except for the Company and its Subsidiaries.

Section 2.               Appointment of Rights Agent.
The Company hereby appoints the Rights Agent to act as agent for the Company in
accordance with the terms and conditions hereof, and the Rights Agent hereby
accepts such appointment. The Company may from time to time appoint such
co-rights agents as it may deem necessary or desirable upon ten days written
notice to the Rights Agent. The Rights Agent shall have no duty to supervise
and shall in no event be liable for the acts or omissions of, any such
co-rights agent.

Section 3.               Issuance of Rights Certificates.

(a)           Until the earlier of
(i) the Close of Business on the 10th Business Day after the Stock
Acquisition Date or (ii) the Close of Business on the 10th Business Day
(or such later date as may be determined by action of the Board prior to such
time as any Person becomes an Acquiring Person) after the date that a tender or
exchange offer by any Person (other than any Exempted Entity, 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 l4d-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 Class A Common Stock
registered in the names of the holders of the Class A Common Stock (which
certificates for Class A Common Stock shall be deemed also to be
certificates for Rights) and not by separate certificates and (y) the Rights
will be transferable only in connection with the transfer of the underlying
shares of Class A Common Stock (including a transfer to the Company). The
Company shall promptly notify the Rights Agent of the occurrence of a
Distribution Date and request its transfer agent to provide to the Rights Agent
a stockholder list together with all other relevant information. As soon as
practicable after the Rights Agent is notified of the Distribution Date and
receives such notice, list and information from the Company, the Rights Agent
will, at the Company’s expense, send by first-class, insured, postage-prepaid
mail, to each record holder of the Class A Common Stock 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 B hereto (the 

 6
 

 

“Rights
Certificates”), evidencing one Right for each share of Class A Common
Stock so held, subject to adjustment as provided herein. In the event that an
adjustment in the number of Rights per share of Class A Common Stock has
been made pursuant to Section 11(p) hereof, at the time of
distribution 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 failure to mail a Rights Certificate shall not affect the
legality or validity of the Rights.

(b)           The Company will
send, as promptly as practicable following the Record Date, a copy of a Summary
of Rights, in the form attached hereto as Exhibit C (the “Summary of
Rights”) by first-class, postage-prepaid mail, to each record holder of Class A
Common Stock as of the Close of Business on the Record Date (other than any
Acquiring Person or any Associate or Affiliate of any Acquiring Person), at the
address of such holder shown on the records of the Company. With respect to
certificates for the Class A Common Stock outstanding as of the Record
Date, until the Distribution Date, the Rights will be evidenced by such
certificates registered in the names of the holders thereof together with the
Summary of Rights and the registered holders of the Class A Common Stock
shall also be the registered holders of the associated Rights. Until the Close
of Business on the Distribution Date (or the earlier of the Redemption Date or
the Close of Business on the Final Expiration Date), the surrender for transfer
of any certificates representing shares of Class A Common Stock
outstanding on the Record Date, with or without a copy of the Summary of Rights
attached thereto, shall also constitute the transfer of the Rights associated
with such shares of Class A Common Stock.

(c)           Rights shall be
issued in respect of all shares of Class A Common Stock which are issued
(whether originally issued, from the Company’s treasury or upon the conversion
of the Class B Common Stock, $0.01 par value, of the Company) on or after
the Record Date but prior to the earliest of the Close of Business on the
Distribution Date, the Redemption Date or the Close of Business on the Final
Expiration Date. Certificates representing such shares of Class A Common
Stock shall also be deemed to be certificates for Rights, and shall bear the
following legend:

This certificate also evidences and entitles the
holder hereof to certain Rights as set forth in the Rights Agreement between
DynCorp International Inc. (the “Company”) and the Rights Agent hereunder, as
it may from time to time be amended or supplemented in accordance with its
terms (the “Rights Agreement”), the terms of which are hereby incorporated
herein by reference and a copy of which is on file at the principal offices of
the Company. Under certain circumstances, as set forth in the Rights Agreement,
such Rights will be evidenced by separate certificates and will no longer be
evidenced by this certificate. The Company will mail to the holder of this
certificate a copy of the Rights Agreement, 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 

 7
 

 

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 Class A Common Stock represented
by such certificates shall be evidenced by such certificates alone and
registered holders of Class A Common Stock 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 Class A
Common Stock represented by such certificates.

In the event that the Company purchases or otherwise
acquires any Class A Common Stock after the Record Date but prior to the
Distribution Date, any Rights associated with such Class A Common Stock
shall be deemed canceled and retired so that the Company shall not be entitled
to exercise any Rights associated with the Class A Common Stock which are
no longer outstanding.

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

Section 4.               Form of 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 B hereto and may have such marks of identification or
designation and such legends, summaries or endorsements printed thereon as the
Company may deem appropriate (but which do not affect the rights, duties or
responsibilities of the Rights Agent) 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. The Rights Certificates
shall be in machine printable format and in a form reasonably satisfactory to
the Rights Agent. Subject to the provisions of Section 11 and Section 22
hereof, the Rights Certificates, whenever distributed, shall show the date of
countersignature, and on their face shall entitle the holders thereof to
purchase such number of one one-thousandth of a share of Preferred Stock as
shall be set forth therein at the price set forth therein (such exercise price
per one one-thousandth of a 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 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 

 8
 

 

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, continuing agreement,
arrangement or understanding which has as a primary purpose or effect avoidance
of Section 7(e) hereof, or any transferee of such persons, and provided that the Company shall have
notified the Rights Agent that this Section 4(b) applies, 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.

The Company shall supply the Rights Agent with such
legended Rights Certificates.

Section 5.               Countersignature and
Registration.

(a)           The Rights
Certificates shall be executed on behalf of the Company by its Chairman of the
Board, its President, its Chief Executive Officer or any Vice President, 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 an
Assistant Secretary 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, 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 and receipt by the Rights Agent of all reasonably necessary
information, the Rights Agent will keep, or cause to be kept, at its principal
office or offices designated as the appropriate place for surrender of Rights
Certificates upon exercise or transfer, 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 

 9
 

 

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 this Agreement, 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 one one-thousandth of a share of Preferred Stock (or, following a
Triggering Event, Class A Common Stock, 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 properly completed and
signed the certificate contained in the form of assignment on the reverse side
of such Rights Certificate and 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. Thereupon the Rights Agent shall, subject to the provisions of this
Agreement, countersign and deliver to the Person entitled thereto a Rights
Certificate or Rights Certificates, as the case may be, as so requested. The
Company may require payment by the holders of Rights of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
transfer, split up, combination or exchange of Rights Certificates. The Rights
Agent shall have no duty or obligation to take any action under any Section of
this Agreement which requires the payment by a holder of Rights of applicable
taxes and governmental charges unless and until the Rights Agent is satisfied
that all such taxes and/or charges have been paid.

(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, at the Company’s or the Rights Agent’s request, reimbursement to the
Company and the Rights Agent of all reasonable expenses incidental thereto,
and, upon surrender to the Rights Agent and cancellation of the 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)           Except as otherwise
provided herein, at any time after the Distribution Date the registered holder
of any Rights Certificate may exercise the Rights evidenced thereby

 

 10

 

(except as
otherwise provided herein including, without limitation, the restrictions on
exercisability set forth in Section 9(c), Section 11(a)(ii) 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 principal office or offices of the Rights
Agent designated for such purpose, together with payment of the aggregate
Purchase Price with respect to the total number of one one-thousandth of a
share (or other securities, cash or other assets, as the case may be) as to
which such surrendered Rights are then exercisable, at or prior to the earlier
of (i) 5:00 P.M., New York City time, on May 3, 2015 (such date,
the “Final Expiration Date”); (ii) the time at which the right to exercise
the Rights terminates pursuant to Section 23 hereof; or (iii) the
time at which the right to exercise the Rights terminates pursuant to Section 24
hereof (the earliest of (i), (ii) and (iii) being herein referred to
as the “Expiration Date”).

(b)           The Purchase Price
for each one one-thousandth of a share of Preferred Stock pursuant to the
exercise of a Right shall initially be $75.00 and shall be subject to
adjustment from time to time as provided in Section 11 and Section 13
hereof and shall be payable in accordance with paragraph (c) below.

(c)           Except as otherwise
provided herein, 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 one one-thousandth of a share of Preferred Stock (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 tax or
charge, the Rights Agent shall, subject to Section 20(k) hereof,
thereupon promptly (i) (A) requisition from any transfer agent of the
shares of Preferred Stock (or make available, if the Rights Agent is the
transfer agent for such shares) certificates for the total number of one
one-thousandth of a share of Preferred Stock 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 shares of Preferred Stock issuable upon exercise of the Rights
hereunder with a depositary agent, requisition from the depositary agent
depositary receipts representing such number of one one-thousandth of a share
of Preferred Stock as are to be purchased (in which case certificates for the
shares of Preferred Stock 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 Class A Common Stock) of the Company, pay cash
and/or distribute other property pursuant to Section 11(a) hereof,
the Company will make all arrangements necessary so that such other securities,
cash and/or other property are available for distribution by the Rights Agent,
if and when necessary to comply with this Agreement. The Company reserves the
right 

 11
 

 

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 shares of Preferred
Stock would be issued.

(d)           Except as otherwise
provided for herein, in case the registered holder of any Rights Certificate
shall exercise less than all the Rights evidenced thereby, a new Rights
Certificate evidencing Rights equivalent to 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 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, continuing agreement, arrangement or understanding which has
as a primary purpose or effect the avoidance of this Section 7(e), and
subsequent transferees of such persons, shall be 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 notify the Rights Agent when this Section 7(e) applies
and should use all reasonable efforts to ensure that the provisions of this Section 7(e) and
Section 4(b) hereof are complied with, but neither the Company nor
the Rights Agent shall have any liability to any holder of Rights Certificates
or any other Person as a result of the Company’s failure to make any
determinations with respect to an Acquiring Person or its Affiliates,
Associates or transferees hereunder. The Rights Agent will endeavor to comply
with the provisions hereof to the extent it has received instructions from the
Company concerning such matters.

(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) properly 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 Associates or Affiliates thereof as the Company or the
Rights Agent shall reasonably request.

Section 8.               Cancellation 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 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 

 12
 

 

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.

Section 9.               Reservation and Availability
of Capital Stock.

(a)           The Company
covenants and agrees that it will cause to be reserved and kept available out
of its authorized and unissued shares of Preferred Stock (and, following the
occurrence of a Triggering Event, out of its authorized and unissued shares of Class A
Common Stock and/or other securities or out of its authorized and issued shares
held in its treasury), the number of shares of Preferred Stock (and, following
the occurrence of a Triggering Event, Class A Common Stock 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
shares of Preferred Stock (and, following the occurrence of a Triggering Event,
Class A Common Stock and/or other securities) issuable and deliverable
upon the exercise of the Rights may be listed on any national securities
exchange or quoted on NASDAQ, the Company shall use its reasonable 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 reasonable 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 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 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 and shall give simultaneous written
notice to the Rights Agent 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. In addition, if the Company shall determine
that a registration statement is required following the Distribution Date, the
Company may by issuing a public announcement temporarily suspend the
exercisability of the Rights until such time as a registration statement has
been declared effective. The Company shall promptly provide the Rights Agent
with copies of such announcements. 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. The
Rights Agent may assume 

 13
 

 

that any Right
exercised is permitted to be exercised under applicable law and shall have no
liability for acting in reliance upon such assumption.

(d)           The Company
covenants and agrees that it will take all such action as may be necessary to
ensure that all one one-thousandth of a share of Preferred Stock (and,
following the occurrence of a Triggering Event, Class A Common Stock
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 taxes
and governmental charges which may be payable in respect of the issuance or
delivery of the Rights Certificates and of any certificates for a number of one
one-thousandth of a share of Preferred Stock (or Class A Common Stock
and/or other securities, as the case may be) upon the exercise of Rights. The
Company shall not, however, be required to pay any tax or charge 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 one
one-thousandth of a share of Preferred Stock (or Class A Common Stock
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 one one-thousandth of a share of Preferred Stock (or Class A Common
Stock 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 such tax or charge
shall have been paid (any such tax being payable by the holder of such Rights
Certificate at the time of surrender) or until it has been established to the
Company’s satisfaction that no such tax or charge is due.

Section 10.             Preferred Stock Record Date.
Each Person in whose name any certificate for a number of one one-thousandth of
a share of Preferred Stock (or Class A Common Stock 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 shares of
Preferred Stock (or Class A Common Stock 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 taxes and
charges) was made; provided, however,
that if the date of such surrender and payment is a date upon which the
Preferred Stock (or Class A Common Stock 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 Preferred Stock (or Class A Common Stock 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 stockholder 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 

 14
 

 

and the number of Rights outstanding are subject to
adjustment from time to time as provided in this Section 11.

(a)           (i)  In the
event the Company shall at any time after the date of this Agreement (A) declare
and pay a dividend on the Preferred Stock payable in shares of Preferred Stock,
(B) subdivide the outstanding Preferred Stock, (C) combine the
outstanding Preferred Stock into a smaller number of shares or (D) issue
any shares of its capital stock in a reclassification of the Preferred Stock
(including any such reclassification in connection with a consolidation or
merger in which the Company is the continuing or surviving corporation), except
as otherwise provided in this Section 11(a) and Section 7(e) hereof,
the number and kind of shares of Preferred Stock 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 shares of Preferred Stock 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 Preferred Stock 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 1l(a)(i) shall
be in addition to, and shall be made prior to, any adjustment required pursuant
to Section 11(a)(ii) hereof

(ii)           Subject
to Section 24 hereof, in the event any Person shall become an Acquiring
Person, then 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, in lieu
of a number of one one-thousandth of a share of Preferred Stock, such number of
shares of Class A Common Stock of the Company as shall equal the result
obtained by (x) multiplying the then current Purchase Price by the then
number of one one-thousandth of a share of Preferred Stock 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 Right and for
all purposes of this Agreement) by 50% of the Current Market Price (determined
pursuant to Section 11(d) hereof) per share of Class A Common
Stock on the date of such first occurrence (such number of shares, the “Adjustment
Shares”).

(iii)          In
the event that the number of shares of Class A Common Stock which are
authorized by the Company’s Certificate of Incorporation, but which are not
outstanding or reserved for issuance for purposes other than upon exercise of
the Rights, are 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) Class A Common Stock or other equity
securities of the Company (including, without limitation, shares, or fractions
of shares, of preferred stock, such as the Preferred Stock, which the Board has
deemed to have essentially the same value or economic rights as shares of Class A
Common Stock (such shares of preferred stock being referred to as “Class A
Common Stock Equivalents”)), (4) debt securities of the 

 15
 

 

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 30 days following the
first occurrence of a Section 11(a)(ii) Event (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, shares of Class A Common
Stock (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 shares of Class A
Common Stock could be authorized for issuance upon exercise in full of the
Rights, the 30-day period set forth above may be extended to the extent
necessary, but not more than 90 days after the Section 11(a)(ii) Trigger
Date, in order that the Company may seek stockholder approval for the
authorization of such additional shares (such 30-day period, as it may be
extended, is herein called the “Substitution Period”). To the extent that
action is to 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 stockholder 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, in each case with simultaneous written
notice to the Rights Agent. For purposes of this Section 11(a)(iii), the
value of each Adjustment Share shall be the Current Market Price per share of
the Class A Common Stock on the Section 11(a)(ii) Trigger Date
and the per share or fractional value of any Class A Common Stock Equivalent
shall be deemed to equal the Current Market Price per share of the Class A
Common Stock on such date.

(b)           In case the Company
shall fix a record date for the issuance of rights, options or warrants to all
holders of Preferred Stock entitling them to subscribe for or purchase (for a
period expiring within forty-five (45) calendar days after such record date)
Preferred Stock (or shares having the same rights, privileges and preferences
as the shares of Preferred Stock (“Equivalent Preferred Stock”)) or securities
convertible into Preferred Stock or Equivalent Preferred Stock at a price per
share of Preferred Stock or per share of Equivalent Preferred Stock (or having
a conversion price per share, if a security convertible into Preferred Stock or
Equivalent Preferred Stock) less than the Current Market Price (as determined
pursuant to Section 11(d) hereof) per share of Preferred Stock 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 shares of Preferred Stock outstanding on 

 16
 

 

such record
date, plus the number of shares of Preferred Stock which the aggregate offering
price of the total number of shares of Preferred Stock and/or Equivalent
Preferred Stock 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 shares of
Preferred Stock outstanding on such record date, plus the number of additional
shares of Preferred Stock and/or Equivalent Preferred Stock to be offered for
subscription or purchase (or into which the convertible securities so to be
offered are initially convertible), provided, however, that in no event shall
the consideration to be paid upon exercise of one Right be less than the
aggregate par value of the shares of capital stock of the Company issuable upon
exercise of one Right. In case such subscription price 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 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. Shares
of Preferred Stock 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 Preferred Stock
(including any such distribution made in connection with a consolidation or
merger in which the Company is the surviving corporation), of evidences of
indebtedness 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 Preferred Stock, but including any dividend payable in stock other
than Preferred Stock) 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 share of
Preferred Stock 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 a share of Preferred Stock, and the denominator of which
shall be such Current Market Price (as determined pursuant to Section 11(d) hereof)
per share of Preferred Stock, provided, however, that in no event shall the
consideration to be paid upon exercise of one Right be less than the aggregate
par value of the shares of capital stock of the Company issuable upon exercise
of one Right. 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)           (i)  For the
purpose of any computation hereunder, other than computations made pursuant to Section 11(a)(iii) hereof,
the Current Market Price per share of Class A Common Stock on any date
shall be deemed to be the average of the daily closing prices per share of such
Class A Common Stock for the 30 consecutive Trading Days immediately prior
to and not including such date, and for purposes of computations made pursuant
to Section 11(a)(iii) hereof, the Current Market Price per share of Class A
Common Stock on any date shall be deemed to be the average of the daily closing
prices per share of such Class A Common Stock for the 10 consecutive
Trading Days immediately following and not including such date; provided, however, that in the event that
the Current Market Price per share of the Class A Common Stock is
determined during a period following the announcement by the issuer of such 

 17
 

 

Class A
Common Stock of (A) a dividend or distribution on such Class A Common
Stock payable in shares of such Class A Common Stock or securities
convertible into shares of such Class A Common Stock (other than the
Rights) or (B) any subdivision, combination or reclassification of such Class A
Common Stock, 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 30-Trading-Day
or 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 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 the shares of Class A Common Stock are listed or admitted to
trading on the New York Stock Exchange, 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 or,
if the shares of Class A Common Stock 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, or quoted on NASDAQ on which the
shares of Class A Common Stock are listed or admitted to trading, or, if
on any such date the shares of Class A Common Stock are not quoted by any
such organizations, the average of the closing bid and asked prices as
furnished by a professional market maker making a market in the Class A
Common Stock selected by the Board. If on any such date no market maker is
making a market in the Class A Common Stock, 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 shares of Class A Common Stock are listed or admitted to trading
is open for the transaction of business or, if the shares of Class A
Common Stock are not listed or admitted to trading on any national securities
exchange, or quoted on NASDAQ, a Business Day. If the Class A Common Stock
is 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.

(ii)           For
the purpose of any computation hereunder, the Current Market Price per share of
Preferred Stock shall be determined in the same manner as set forth above for
the Class A Common Stock in clause (i) of this Section 11(d) (other
than the last sentence thereof). If the Current Market Price per share of
Preferred Stock cannot be determined in the manner provided above or if the
Preferred Stock is not publicly held or listed or traded in a manner described
in clause (i) of this Section 11(d), the Current Market Price per
share of Preferred Stock shall be conclusively deemed to be an amount equal to
100 (as such number may be appropriately adjusted for such events as stock
splits, stock dividends and recapitalizations with respect to the Class A
Common Stock occurring after the date of this Agreement) multiplied by the
Current Market Price per share of the Class A Common Stock. If neither the
Class A Common Stock nor the Preferred Stock is publicly held or so listed
or traded, Current Market Price per share of the Preferred Stock 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.

 18
 

 

(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 1% in the Purchase Price; provided,
however, that any adjustments which by reason of this Section 11(e) are
not required to be made shall be carried forward and taken into account in any
subsequent adjustment. All calculations under this Section 11 shall be
made to the nearest cent or to the nearest ten-thousandth of a share of Class A
Common Stock or other share or one-millionth of a share of Preferred Stock, as
the case may be. Notwithstanding the first sentence of this Section 11(e),
any adjustment required by this Section 11 shall be made no later than the
earlier of (i) 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 Preferred Stock, 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 Preferred Stock 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 Preferred Stock shall apply on like terms to any
such other shares.

(g)           All Rights
originally issued by the Company subsequent to any adjustment made to the
Purchase Price hereunder shall evidence the right to purchase, at the adjusted
Purchase Price, the number of one one-thousandth of a share of Preferred Stock
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 one one-thousandth of a share of
Preferred Stock (calculated to the nearest one-millionth) obtained by (i) multiplying
(x) the number of one one-thousandth of a share 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 one
one-thousandth of a share of Preferred Stock 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 one one-thousandth of a share of
Preferred Stock for which a Right was exercisable immediately prior to such
adjustment. Each Right held of record prior to such adjustment of the number of
Rights shall become that number of Rights (calculated to the nearest one
ten-thousandth) obtained by dividing the Purchase Price in effect immediately
prior to adjustment of the Purchase Price by the Purchase Price in effect
immediately after adjustment of the Purchase Price. The Company shall make a
public announcement of its election to adjust the number of Rights, indicating
the record date for the adjustment, and, if known at the time, the amount of
the 

 19
 

 

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 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 to be so 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 one one-thousandth
of a share of Preferred Stock issuable upon the exercise of the Rights, the
Rights Certificates theretofore and thereafter issued may continue to express
the Purchase Price per one one-thousandth of a share and the number of one
one-thousandth of a share 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 par value, if any, of the number of one one-thousandth of a share of
Preferred Stock 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 one one-thousandth of a share of Preferred Stock
at such adjusted Purchase Price.

(l)            In any case in
which this Section 11 shall require that an adjustment in the Purchase
Price be made effective as of a record date for a specified event, the Company
may elect to defer until the occurrence of such event the issuance to the
holder of any Right exercised after such record date the number of one one-thousandth
of a share of Preferred Stock and other capital stock or securities of the
Company, if any, issuable upon such exercise over and above the number of one
one-thousandth of a share of Preferred Stock 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
adjustments in the Purchase Price, in addition to those adjustments expressly
required by this Section 11, as and to the extent that it in its sole
discretion shall determine to be advisable in order that any (i) consolidation
or subdivision of the Preferred Stock, (ii) issuance wholly for cash of
any shares of Preferred Stock at less than the Current Market Price, (iii) issuance
wholly for cash of shares of Preferred Stock or securities which by

 20

 

their terms
are convertible into or exchangeable for shares of Preferred Stock, (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 Preferred
Stock shall not be taxable to such stockholders.

(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) or
(iii) sell or transfer (or permit any Subsidiary to sell or transfer), in
one transaction, or a series of related transactions, assets, cash (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 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, merger or
sale there are any rights, warrants or other instruments or securities
outstanding or agreements in effect which would substantially diminish or
otherwise eliminate the benefits intended to be afforded by the Rights, (y) prior
to, simultaneously with or immediately after such consolidation, merger or
sale, the shareholders of the Person who constitutes, or would constitute, the “Principal
Party” for purposes of Section 13 hereof shall have received a
distribution of Rights previously owned by such Person or any of its Affiliates
and Associates, or (z) the form or nature of organization of the Principal
Party would preclude or limit the exercisability of the Rights.

(o)           The Company
covenants and agrees that, after the Distribution Date, it will not, except as
permitted by Section 23, Section 24 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 Record Date and prior to the Distribution Date (i) declare
and pay a dividend on the outstanding shares of Class A Common Stock
payable in shares of Class A Common Stock, (ii) subdivide the
outstanding shares of Class A Common Stock or (iii) combine the
outstanding shares of Class A Common Stock into a smaller number of
shares, the number of Rights associated with each share of Class A Common
Stock 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 share of Class A Common Stock
following any such event shall equal the result obtained by multiplying the number
of Rights associated with each share of Class A Common Stock immediately
prior to such event by a fraction the numerator which shall be the total number
of shares of Class A Common Stock outstanding immediately prior to the
occurrence of the event and the denominator of which shall be the total number
of shares of Class A Common Stock 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
and computations accounting for such adjustment, (b) promptly file with
the Rights Agent, 

 21
 

 

and with each transfer agent for the Preferred Stock
and the Class A Common Stock, 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 in accordance with Section 25 hereof. The Rights
Agent shall be fully protected in relying on any such certificate and on any
adjustment therein contained and shall have no duty with respect to and shall
not be deemed to have knowledge of such adjustment unless and until it shall
have received such certificate.

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

(a)           In the event that,
at any time after a Person becomes an Acquiring Person, directly or indirectly,
(x) the Company shall consolidate with, or merge with and into, any other
Person (other than (i) an Exempted Entity or a (ii) Subsidiary of the
Company in a transaction which complies with Section 11(n) hereof),
and the Company shall not be the continuing or surviving corporation of such consolidation
or merger, or (y) any Person (other than (i) an Exempted Entity or (ii) a
Subsidiary of the Company in a transaction which complies with Section 11(n) hereof)
shall consolidate with, or merge with or into, the Company, and the Company
shall be the continuing or surviving corporation of such consolidation or
merger and, in connection with such consolidation or merger, all or part of the
outstanding shares of Class A Common Stock shall be changed into, or
exchanged for, stock 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 or
more transactions, assets or earning power aggregating 50% or more of the
assets or earning power of the Company and its Subsidiaries (taken as a whole)
to any other Person (other than the Company or one or more wholly-owned
Subsidiaries of the Company), then, and in each such case (except as may be
contemplated by Section 13(d) hereof), 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
shares of Class A Common Stock of the Principal Party (as such term is
hereinafter defined), not subject to any liens, encumbrances, rights of first
refusal or other adverse claims, as shall be equal to the result obtained by (1) multiplying
the then current Purchase Price by the number of one one-thousandth of a share
of Preferred Stock 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 one one-thousandth of a share 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),
and dividing that product (which, following the first occurrence of a Section 13
Event, shall be referred to as the “Purchase Price” for each Right and for all
purposes of this Agreement) by (2) 50% of the Current Market Price
(determined pursuant to Section 11(d)(i) hereof) per share of the Class A
Common Stock 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 

 22
 

 

reservation of
a sufficient number of shares of its Class A Common Stock) 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 shares of Class A Common Stock 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), the Person that is the issuer of any
securities into which shares of Class A Common Stock of the Company are
converted in such merger or consolidation, and if no securities are so issued,
the Person that is the other party to such merger or consolidation; and

(ii)           in
the case of any transaction described in clause (z) of the first sentence
of Section 13(a), 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 described in the foregoing clause (i) or this Section 13(b) (ii) if
the Class A Common Stock of such Person is not at such time and has not
been continuously over the preceding 12-month period registered under Section 12
of the Exchange Act, and such Person is a direct or indirect Subsidiary of
another Person the Class A Common Stock of which is and has 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 Class A Common Stock of two or more of which are and have been
so registered, “Principal Party” shall refer to whichever of such Persons is
the issuer of the Class A Common Stock having the greatest aggregate
market value.

(c)           The Company shall
not consummate any such consolidation, merger, sale or transfer unless the
Principal Party shall have a sufficient number of authorized shares of its Class A
Common Stock which have not been issued or reserved for issuance to permit the
exercise in full of the Rights in accordance with this Section 13 and
unless prior thereto the Company and 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, 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 reasonable 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; and

(ii)           take
such 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

 23
 

 

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

(d)           The Rights Agent may
rely and be fully protected in relying upon a certificate of the Company
stating that the provisions of this Section 13 have been fulfilled. Notwithstanding
anything in this Agreement to the contrary, the prior written consent of the
Rights Agent must be obtained in connection with any supplemental agreement
which alters the rights or duties of the Rights Agent, which consent shall not
be unreasonably withheld.

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

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 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 the Rights are listed or admitted to trading
on the New York Stock Exchange, the closing price for each day shall be the
last sale price, regular way, or, in case no 

 24
 

 

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 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 on any such date the Rights are not quoted on
NASDAQ, or by any such organizations, 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 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 shares of Preferred Stock (other than
fractions which are integral multiples of one one-thousandth of a share of
Preferred Stock) upon exercise of the Rights or to distribute certificates which
evidence fractional shares of Preferred Stock (other than fractions which are
integral multiples of one one-thousandth of a share of Preferred Stock). In
lieu of fractional shares of Preferred Stock that are not integral multiples of
one one-thousandth of a share of Preferred Stock, 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 one-thousandth of a share of Preferred Stock. For purposes
of this Section 14(b), the current market value of one one-thousandth of a
share of Preferred Stock shall be one one-thousandth of the closing price of a
share of Preferred Stock (as determined pursuant to Section 11(d)(ii) hereof)
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 shares of Class A Common Stock upon exercise of the Rights or
to distribute certificates which evidence fractional shares of Class A
Common Stock. In lieu of fractional shares of Class A Common Stock, the
Company shall 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 share of Class A Common
Stock. For purposes of this Section 14(c), the current market value of one
share of Class A Common Stock shall be the closing price of one share of Class A
Common Stock (as determined pursuant to Section 11(d)(i) hereof) for
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 his right to receive any
fractional Rights or any fractional shares upon exercise of a Right, except as
permitted by this Section 14.

(e)           Whenever a payment
for fractional Rights or fractional shares is to be made by the Rights Agent,
the Company shall (i) promptly prepare and deliver to the Rights Agent a
certificate setting forth in reasonable detail the facts related to such
payment and the prices and/or formulas utilized in calculating such payments
and (ii) provide sufficient monies to the Rights Agent in the form of
fully collected funds to make such payments. The Rights Agent shall be fully
protected in relying upon such a certificate and shall have no duty with
respect to, and shall not be deemed to have knowledge of any payment for
fractional Rights or fractional shares under any Section of this Agreement
relating to the payment of fractional Rights or 

 25
 

 

fractional
shares unless and until the Rights Agent shall have received such a certificate
and sufficient monies.

Section 15.             Rights of Action. All rights
of action in respect of this Agreement, excepting the rights of action given to
the Rights Agent under Section 18 hereof, are vested in the respective
registered holders of the Rights Certificates (and, prior to the Distribution
Date, the registered holders of the Class A Common Stock); and any
registered holder of any Rights Certificate (or, prior to the Distribution
Date, of the Class A Common Stock), without the consent of the Rights
Agent or of the holder of any other Rights Certificate (or, prior to the
Distribution Date, of the Class A Common Stock), may, in his own behalf
and for his own benefit, enforce, and may institute and maintain any suit,
action or proceeding against the Company to enforce, or otherwise act in
respect of, his right to exercise the Rights evidenced by such Rights
Certificate (or, prior to the Distribution Date, the Class A Common Stock)
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.

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 Class A Common Stock;

(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 purposes, 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 Class A Common Stock certificate) is
registered as the absolute owner thereof and of the Rights evidenced thereby
(notwithstanding any notations of ownership or writing on the Rights
Certificates or the associated Class A Common Stock certificate made by
anyone other than the Company or the Rights Agent) for all purposes whatsoever,
and neither the Company nor the Rights Agent, subject to Section 7 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 

 26
 

 

authority,
prohibiting or otherwise restraining performance of such obligation; provided, however, the Company must use
its reasonable best efforts to have any such order, decree, judgment or ruling
(whether interlocutory or final) lifted or otherwise overturned as soon as
possible.

Section 17.             Rights Certificate Holder Not
Deemed a Stockholder. 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 one one-thousandth of a share of Preferred Stock 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 construed to confer upon the holder of any Rights
Certificate, as such, any of the rights of a stockholder of the Company or any
right to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting
stockholders (except as provided in this Agreement), or to receive dividends or
subscription rights, or otherwise, until the 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 such compensation as shall be agreed in writing
between the Company and the Rights Agent for all services rendered by it
hereunder and, from time to time, on demand of the Rights Agent, its reasonable
expenses and counsel fees and disbursements and other disbursements incurred in
the preparation, delivery, execution, amendment and administration of this
Agreement and the exercise and performance of its duties hereunder. The Company
also agrees to indemnify the Rights Agent for, and to hold it harmless against,
any loss, liability, damage, judgment, fine, penalty, claim, demand,
settlement, cost or expense, incurred without gross negligence, or willful
misconduct on the part of the Rights Agent (each as determined by a final,
non-appealable order, judgment, decree or ruling of a court of competent
jurisdiction) for any action taken, suffered or omitted by the Rights Agent in
connection with the acceptance and administration of this Agreement, including,
without limitation, the costs and expenses of defending against any claim
(whether asserted by the Company or any holder of Rights) of liability in the
premises. The provisions of this Section 18 and Section 20 below
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 authorized and protected and shall incur no liability for or in
respect of any action taken, suffered or omitted by it in connection with its
acceptance and administration of this Agreement in reliance upon any Rights
Certificate or certificate for Class A Common Stock or for other
securities of the Company, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, instruction, direction,
consent, certificate, statement or other paper or document believed by it to be
genuine and to be signed and executed by the proper Person or Persons. The
Rights Agent shall not be deemed to have knowledge of any event of which it was
supposed to receive notice thereof hereunder, and the Rights Agent shall be
fully protected and shall incur no liability for failing to take any action in
connection therewith unless and until it has received such notice.

 27
 

 

(c)           Notwithstanding
anything in this Agreement to the contrary, in no event shall the Rights Agent
be liable for special, indirect, incidental, punitive or consequential loss or
damage of any kind whatsoever (including but not limited to lost profits), even
if the Rights Agent has been advised of the likelihood of the loss or damage
and regardless of the form of the action.

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

(a)           Any Person into
which the Rights Agent or any successor Rights Agent may be merged or with
which it may be consolidated, or any Person resulting from any merger or
consolidation to which the Rights Agent or any successor Rights Agent shall be
a party, or any Person succeeding to the 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 only the duties and obligations expressly imposed by
this Agreement, and no implied duties or obligations shall be read into this
Agreement against the Rights Agent, upon the following terms and conditions, by
all of which the Company and the holders of Rights Certificates, by their
acceptance thereof, shall be bound:

(a)           The Rights Agent may
consult with legal counsel of its selection (who may be legal counsel for the
Company), and the 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, suffered or omitted
by it in accordance with such 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) 

 28
 

 

be proved or
established by the Company prior to taking, suffering or omitting to take any
action hereunder, such fact or matter (unless other evidence in respect thereof
be herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by the Chairman of the Board, the
President, the Chief Executive Officer, any Vice President, the Secretary or
any Assistant Secretary of the Company and delivered to the Rights Agent; and
such certificate shall be full authorization to the Rights Agent for any action
taken, suffered or omitted to be taken by it under the provisions of this
Agreement in reliance upon such certificate.

(c)           The Rights Agent
shall be liable hereunder only for its own gross negligence, or willful
misconduct (each as determined by a final, non-appealable order, judgment,
decree or ruling of a court of competent jurisdiction), provided, however, that
in no event shall the Rights Agent be liable for indirect, special,
consequential or punitive damages. Any liability of the Rights Agent under this
Rights Agreement will be limited to the amount of fees paid by the Company to
the Rights Agent.

(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 or have any liability 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 Rights (including
the Rights becoming null and void pursuant to Section 7(e)) 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 the Rights Agent’s actual notice of any
such adjustment); nor shall it by any act hereunder be deemed to make any
representation or warranty as to the authorization or reservation of any shares
of Class A Common Stock or Preferred Stock to be issued pursuant to this
Agreement or any Rights Certificate or as to whether any shares of Class A
Common Stock or Preferred Stock will, when so issued, be validly authorized and
issued, fully paid and nonassessable, nor shall the Rights Agent be responsible
for the legality of the terms hereof in its capacity as an administrative
agent.

(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, any Vice President, the Secretary or
any Assistant Secretary of the Company, and to apply to such officers for advice
or instructions in connection 

 29
 

 

with its
duties, and such instruction shall be full authorization and protection to the
Rights Agent and the Rights Agent shall incur no liability for or in respect of
any action taken, suffered or omitted to be taken by it in accordance with
instructions of any such officer or for any delay in acting while waiting for
these instructions. Any application by the Rights Agent for written
instructions from the Company may, at the option of the Rights Agent, set forth
in writing any action proposed to be taken or omitted by the Rights Agent under
this Agreement and the date on and/or after which such action shall be taken or
such omission shall be effective. The Rights Agent shall not be liable for any
action taken by, or omission of, the Rights Agent in accordance with a proposal
included in such application on or after the date specified in such application
(which date shall not be less than three (3) Business Days after the date
any officer of the Company actually receives such application, unless such
officer shall have consented in writing to any earlier date) unless prior to
taking any such action (or the effective date in the case of an omission), the
Rights Agent shall have received written instructions in response to such application
specifying the action to be taken or omitted or unless the Rights Agent shall
have acted with gross negligence or willful misconduct.

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

(i)            The Rights Agent
may execute and exercise any of the rights or powers hereby vested in it or
perform any duty hereunder either itself or by or through its attorneys or
agents, and the Rights Agent 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, absent gross negligence, bad faith or willful misconduct (each as
determined by a final, non-appealable order, judgment, decree or ruling of a
court of competent jurisdiction) 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 its rights if it reasonably believes
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.

(l)            In addition to the
foregoing, the Rights Agent shall be protected and shall incur no liability
for, or in respect of, any action taken or omitted by it in connection with its
administration of this Agreement if such acts or omissions are in reliance upon
(i) the proper execution of the certification concerning beneficial
ownership appended to the form of assignment and the form of election to
purchase attached hereto unless the Rights Agent shall

 30

 

have actual
knowledge that, as executed, such certification is untrue or (ii) the
non-execution of such certification including, without limitation, any refusal
to honor any otherwise permissible assignment or election by reason of such
non-execution.

(m)          The Company agrees to
give the Rights Agent prompt written notice of any event or ownership which
would prohibit the exercise or transfer or the Rights Certificates.

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 Class A Common Stock and
Preferred Stock, by registered or certified mail. Any successor to the Rights
Agent that so resigns will send notice to the registered holders of the Rights
Certificates by first-class mail if such resignation occurs after the
Distribution Date. The Company may remove the Rights Agent or any successor
Rights Agent upon 30 days’ notice in writing, mailed to the Rights Agent or
successor Rights Agent, as the case may be, and to each transfer agent of the Class A
Common Stock and Preferred Stock, by registered or certified mail. Any
successor to the Rights Agent so removed will send notice to the holders of
Rights Certificates by registered or certified mail if such removal occurs
after the Distribution Date. 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 60 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,
at the expense of the Company), then the Rights Agent or any registered holder
of any Rights Certificate may apply to any court of competent jurisdiction for
the appointment of a new Rights Agent. Any successor Rights Agent, whether
appointed by the Company or by such a court, shall be a Person organized and
doing business under the laws of the United States or of the State of New York
or of any other state of the United States, in good standing, having an office
in the State of New York, which is authorized under such laws to exercise
corporate trust or stock transfer or stockholder services powers and which has
at the time of its appointment as Rights Agent a combined capital and surplus
of at least $50,000,000 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 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 Class A Common Stock and the Preferred Stock, 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 forms as may be approved by its Board 

 31
 

 

to reflect any adjustment or change in the Purchase
Price and the number or kind or class of shares or other securities or property
purchasable under the Rights Certificates made in accordance with the
provisions of this Agreement. In addition, in connection with the issuance or
sale of Class A Common Stock following the Distribution Date and prior to
the earlier of the Redemption Date and the Close of Business on the Final
Expiration Date, the Company may, with respect to shares of Class A Common
Stock so issued or sold (i) pursuant to the exercise of stock options, (ii) under
any employee plan or arrangement, (iii) upon the exercise, conversion or
exchange of securities, notes or debentures issued by the Company or (iv) a
contractual obligation of the Company, in each case existing prior to the Distribution
Date, issue Rights Certificates representing the appropriate number of Rights
in connection with such issuance or sale.

Section 23.             Redemption and Termination.

(a)           The Board may, at
its option, at any time prior to the earlier of (i) such time as any
Person becomes an Acquiring Person or (ii) the Final Expiration Date,
redeem all but not less than all of the then outstanding Rights at a redemption
price of $0.01 per Right, 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”). The Company may, at its option, pay the Redemption Price in cash,
shares of Class A Common Stock (based on the Current Market Price, as
defined in Section 11(d)(i) hereof, of the Class A Common Stock
at the time of redemption) or any other form of consideration deemed
appropriate by the Board.

(b)           Immediately upon the
time of the effectiveness of the redemption of the Rights pursuant to paragraph
(a) of this Section 23 or such earlier time as may be determined by
the Board ordering the redemption of the Rights, although not earlier than the
time of such action (such time the “Redemption Date”), 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 Class A
Common Stock; provided, however,
that the failure to give or any defect in any such notice shall not affect the
validity of such redemption. 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.

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 null and void pursuant to the provisions of Section 7(e) hereof)
for Class A Common Stock at an exchange ratio of one share of Class A
Common Stock per Right, appropriately adjusted to reflect any stock split,
stock dividend or similar 

 32
 

 

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 Class A Common Stock
for or pursuant to the terms of any such plan), together with all Associates or
Affiliates of such Person, becomes the Beneficial Owner of a majority of the Class A
Common Stock 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 Rights shall terminate and the only right thereafter of
the holders of such Rights shall be to receive that number of shares of Class A
Common Stock equal to the number of such Rights held by such holder multiplied
by the Exchange Ratio. The Company shall promptly give public notice (with
prompt notice thereof to the Rights Agent) 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 the Rights
Agent and 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 Class A Common Stock for Rights will be effected
and, in the event of any partial exchange, the number of Rights which will be
exchanged. Any partial exchange shall be effected pro rata  based on the
number of Rights (other than Rights which have become void pursuant to the
provisions of Section 7(e) hereof) held by each holder of Rights.

(c)           In any exchange
pursuant to this Section 24, the Company, at its option, may substitute
Preferred Stock (or Equivalent Preferred Stock, as such term is defined in Section 11(b) hereof)
for Class A Common Stock exchangeable for Rights, at the initial rate of
one one-thousandth of a share of Preferred Stock (or Equivalent Preferred
Stock) for each share of Class A Common Stock, as appropriately adjusted
to reflect stock splits, stock dividends and other similar transactions after
the date hereof.

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

(e)           The Company shall
not be required to issue fractions of shares of Class A Common Stock or to
distribute certificates which evidence fractional shares of Class A Common
Stock. In lieu of such fractional shares of Class A Common Stock, there
shall be paid to the registered holders of the Rights Certificates with regard
to which such fractional shares of Class A Common Stock would otherwise be
issuable, an amount in cash equal to the same fraction of the current market
value of a whole share of Class A Common Stock. For the purposes of this
subsection (e), the current market value of a whole share of Class A
Common Stock shall be the closing price of a share of Class A Common Stock
(as determined pursuant to the second 

 33
 

 

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 stock of any class to the holders of Preferred Stock or to
make any other distribution to the holders of Preferred Stock (other than a
regular quarterly cash dividend out of earnings or retained earnings of the
Company), (ii) to offer to the holders of Preferred Stock rights or
warrants to subscribe for or to purchase any additional shares of Preferred
Stock or shares of stock of any class or any other securities, rights or
options, (iii) to effect any reclassification of its Preferred Stock
(other than a reclassification involving only the subdivision of outstanding
shares of Preferred Stock), (iv) to effect any consolidation or merger
into or with any other Person (other than a Subsidiary of the Company in a
transaction which complies with Section 11(n) 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(n) 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 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, merger, sale, transfer, liquidation,
dissolution or winding up is to take place and the date of participation
therein by the holders of the shares of Preferred Stock, 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 20 days prior to the record date
for determining holders of the shares of Preferred Stock for purposes of such
action, and in the case of any such other action, at least 20 days prior to the
date of the taking of such proposed action or the date of participation therein
by the holders of the shares of Preferred Stock, 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, (i) the Company shall as soon as practicable thereafter
give to each holder of a Rights Certificate and to the Rights Agent, to the
extent feasible and 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 and (ii) all
references in the preceding paragraph to Preferred Stock shall be deemed
thereafter to refer to Class A Common Stock and/or, if appropriate, other
securities.

 34
 

 

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 Company with the Rights Agent) or by
facsimile or other generally accepted means of electronic transmission as
follows:

DynCorp International Inc.

8445 Freeport Parkway

Suite 400

Irving, Texas  75063

Attention:  Michael J. Thorne

Fax No.:  (972) 929-2853

with a copy to:

DynCorp International LLC

3190 Fairview Park Drive

Suite 350

Falls Church, Virginia 22042

Attention:  R.Y. Morrel

Fax No.:  (571) 722-0252

and a copy to:

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

Attention:  Benjamin M. Polk, Esq.

Fax No.:  (212) 593-5955

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) or by facsimile transmission as follows:

Bank of New York

The Bank of New York

101 Barclay St., (11 E)

New York, NY 10286

Attention: Stock Transfer Administration

Fax No.: (212) 815-7048

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 shares of Class A Common Stock) 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.

 35
 

 

Section 27.             Supplements and Amendments. Except
as provided in the penultimate sentence of this Section 27, for so long as
the Rights are then redeemable, the Company may in its sole and absolute
discretion, and the Rights Agent shall if the Company so directs, supplement or
amend any provision of this Agreement in any respect without the approval of
any holders of the Rights. At any time when the Rights are no longer
redeemable, except as provided in the penultimate sentence of this Section 27,
the Company may, and the Rights Agent shall, if the Company so directs,
supplement or amend this Agreement without the approval of any holders of
Rights; provided that no such
supplement or amendment may (a) adversely affect the interests of the
holders of the Rights as such (other than an Acquiring Person and its
Affiliates and Associates), (b) cause the Rights again to be redeemable or
(c) cause the Agreement again to become amendable other than in accordance
with this sentence. Notwithstanding anything contained in this Agreement to the
contrary, (i) no supplement or amendment shall be made which changes the
Redemption Price and (ii) no supplement or amendment that changes the
rights of any Exempted Entity contained in this Agreement (other than the
addition of other Persons as Exempted Entities) will be effective against such
Exempted Entity without its prior written consent, so long as the consent is
not unreasonably withheld in which case such written consent shall not be necessary.
Upon the delivery of a certificate from an appropriate officer of the Company
which states that the supplement or amendment is in compliance with the terms
of this Section 27, and provided that
such supplement or amendment does not change or affect the rights, duties,
liabilities or obligations of the Rights Agent, the Rights Agent shall execute
such supplement or amendment, provided that
any supplement or amendment that does not change or affect the rights, duties,
liabilities or obligations of the Rights Agent shall become effective
immediately upon execution by the Company, whether or not also executed by the
Rights Agent.

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

Section 29.             Determinations and Actions by
the Board, Etc. For all purposes of this Agreement, any calculation of the
number of shares of Class A Common Stock outstanding at any particular
time, including for purposes of determining the particular percentage of such
outstanding shares of Class A Common Stock of which any Person is the
Beneficial Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of
the General Rules and Regulations under the Exchange Act. The Board 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 be final, conclusive
and binding on the Company, the Rights Agent, the holders of the Rights and all
other parties. The Rights Agent shall always be entitled to assume that the
Company’s Board acted in good faith and shall be fully protected and incur no
liability in reliance thereon.

 36
 

 

Section 30.             No Third Party Beneficiaries.
Except for Section 27, this Agreement is not intended, and shall not be
deemed, to confer any rights or remedies upon 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 Class A
Common Stock) and their respective successors and permitted assigns, any legal
or equitable right, remedy or claim under this Agreement or to otherwise create
any third-party beneficiary hereto; but this Agreement shall be for the sole
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 Class A Common Stock).

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

Section 32.             Governing Law; Jurisdiction; Waiver
of Jury Trial. 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 Delaware and for all purposes shall be governed by, and construed in
accordance with, the law of such State; provided, however that the rights,
obligations and duties of the Rights Agent hereunder shall be governed by, and
construed in accordance with the laws of the State of New York. The parties
agree that, all actions and proceedings arising out of this Agreement or any of
the transactions contemplated hereby, shall be brought in the United States
District Court for the Southern District of New York or in a New York State
court in the County of New York and that, in connection with any such action or
proceeding, submit to the jurisdiction of, and venue in, such court. Each of
the parties hereto also irrevocably waives all right to trial by jury in any
action, proceeding or counterclaim arising out of this Agreement or the
transactions contemplated hereby.

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.

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.

 37
 

 

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

	
  

  	
  DYNCORP
  INTERNATIONAL INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Stephen J.
  Cannon

  	
   

  
	
   

  	
  Name: Stephen J.
  Cannon

  
	
   

  	
  Title: President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW
  YORK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ James F.
  Kiszka

  	
   

  
	
   

  	
  Name: James F.
  Kiszka

  
	
   

  	
  Title: Vice
  President

  

 

 38

EXHIBIT A

[Form of Certificate of Designation]

FORM OF

CERTIFICATE OF
DESIGNATIONS, PREFERENCES AND RIGHTS

OF SERIES B JUNIOR
PARTICIPATING PREFERRED STOCK

OF

DYNCORP INTERNATIONAL
INC.

Pursuant to Section 151
of the

General Corporation Law
of the State of Delaware

DynCorp International Inc., a Delaware corporation
(the “CORPORATION”), hereby certifies that by resolution of the Board of
Directors of the Corporation a series of Preferred Stock designated as Series B
Junior Participating Preferred Stock was created as follows:

RESOLVED, that, pursuant to the authority granted to
and vested in the Board of Directors in accordance with the provisions of the
Amended and Restated Certificate of Incorporation, a new series of shares of
the Corporations’ Preferred Stock, be, and it hereby is, established, having
the relative rights, preferences and limitations described below:

Section 1.               DESIGNATION
AND AMOUNT. The shares of such series shall be designated as “SERIES B JUNIOR
PARTICIPATING PREFERRED STOCK” and the number of shares constituting such
series shall be 300,000. Such number of shares may be increased or decreased by
resolution of the Board of Directors; provided, that no decrease shall reduce
the number of shares of Series B Junior Participating Preferred Stock to
less than the number of shares then outstanding plus the number of shares
reserved for issuance upon the exercise of outstanding options, rights or
warrants or upon the conversion of any outstanding securities issued by the
Corporation convertible into Series B Junior Participating Preferred
Stock.

Section 2.               DIVIDENDS
AND DISTRIBUTIONS.

(a)           Subject
to the prior and superior rights of the holders of any shares of any Preferred
Stock with respect to dividends, the holders series of Series B Participating
Preferred Stock ranking prior and superior to the shares of Series B
Junior Participating Preferred Stock with respect to dividends, the holders of Series B
Junior Participating Preferred Stock, including the Series A-1
Preferred Stock and Series A-2 Preferred Stock, shall be entitled to
receive, when, 

 

as and if declared by the
Board of Directors out of funds legally available for the purpose, quarterly
dividends payable in cash on the fifteenth day of March, June, September and
December in each year (each such date being referred to herein as a “QUARTERLY
DIVIDEND PAYMENT DATE”), commencing on the first Quarterly Dividend Payment
Date after the first issuance of a share or fraction of a share of Series B
Junior Participating Preferred Stock, in an amount per share (rounded to the
nearest cent) equal to the greater of (a) $0.01 or (b) subject to the
provision for adjustment hereinafter set forth, 100 times the aggregate per
share amount of all cash dividends, and 100 times the aggregate per share amount
(payable in kind) of all non-cash dividends or other distributions other than a
dividend payable in shares of Class A Common Stock, par value $0.01 per
share, of the Corporation (the “CLASS A COMMON STOCK”), or a subdivision
of the outstanding shares of Class A Common Stock (by reclassification or
otherwise), declared on the Class A Common Stock, since the immediately
preceding Quarterly Dividend Payment Date, or, with respect to the first
Quarterly Dividend Payment Date, since the first issuance of any share or
fraction of a share of Series B Junior Participating Preferred Stock. In
the event the Corporation shall at any time (i) declare and pay any
dividend on Class A Common Stock payable in shares of Class A Common
Stock, (ii) subdivide the outstanding Class A Common Stock, or (iii) combine
the outstanding Class A Common Stock into a smaller number of shares, then
in each such case the amount to which holders of shares of Series B Junior
Participating Preferred Stock were entitled immediately prior to such event
under clause (b) of the preceding sentence shall be adjusted by
multiplying such amount by a fraction the numerator of which is the number of
shares of Class A Common Stock outstanding immediately after such event
and the denominator of which is the number of shares of Class A Common
Stock that were outstanding immediately prior to such event.

(b)           The
Corporation shall declare a dividend or distribution on the Series B
Junior Participating Preferred Stock as provided in Paragraph (a) above
immediately after it declares a dividend or distribution on the Class A
Common Stock (other than a dividend payable in shares of Class A Common
Stock); provided that, in the event no dividend or distribution shall have been
declared on the Class A Common Stock during the period between any
Quarterly Dividend Payment Date and the next subsequent Quarterly Dividend
Payment Date, a dividend of $0.01 per share on the Series B Junior
Participating Preferred Stock shall nevertheless be payable on such subsequent
Quarterly Dividend Payment Date.

(c)           Dividends
shall begin to accrue and be cumulative on outstanding shares of Series B
Junior Participating Preferred Stock from the Quarterly Dividend Payment Date
preceding the date of issue of such shares of Series B Junior Participating
Preferred Stock, unless the date of issue of such shares is prior to the record
date for the first Quarterly Dividend Payment Date, in which case dividends on
such shares shall begin to accrue from the date of issue of such shares, or
unless the date of issue is a Quarterly Dividend Payment Date or is a date
after the record date for the determination of holders of shares of Series B
Junior Participating Preferred Stock entitled to receive a quarterly dividend
and before such Quarterly Dividend Payment Date, in either of which events such
dividends shall begin to accrue and be cumulative from such Quarterly Dividend
Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends
paid on the shares of Series B Junior Participating Preferred Stock in an
amount less than the total amount of such dividends at the time accrued and
payable on such shares shall be allocated pro rata on a share-by-share basis
among all such shares at the time outstanding. The Board of Directors may fix a
record date for the determination of holders of 

 2
 

 

shares of Series B
Junior Participating Preferred Stock entitled to receive payment of a dividend
or distribution declared thereon, which record date shall be no more than 60
days prior to the date fixed for the payment thereof.

Section 3.               VOTING
RIGHTS. The holders of shares of Series B Junior Participating Preferred
Stock shall have the following voting rights:

(a)           Subject
to the provision for adjustment hereinafter set forth, each share of Series B
Junior Participating Preferred Stock shall entitle the holder thereof to 100
votes on all matters submitted to a vote of the stockholders of the
Corporation. In the event the Corporation shall at any time (i) declare
any dividend on Class A Common Stock payable in shares of Class A
Common Stock, (ii) subdivide the outstanding Class A Common Stock, or
(iii) combine the outstanding Class A Common Stock into a smaller
number of shares, then in each such case the number of votes per share to which
holders of shares of Series B Junior Participating Preferred Stock were
entitled immediately prior to such event shall be adjusted by multiplying such
number by a fraction the numerator of which is the number of shares of Class A
Common Stock outstanding immediately after such event and the denominator of
which is the number of shares of Class A Common Stock that were
outstanding immediately prior to such event.

(b)           Except
as otherwise provided herein or by law, the holders of shares of Series B
Junior Participating Preferred Stock and the holders of shares of Class A
Common Stock shall vote together as one class on all matters submitted to a
vote of stockholders of the Corporation.

(c)           (i) If
at any time dividends on any Series B Junior Participating Preferred Stock
shall be in arrears in an amount equal to six (6) quarterly dividends
thereon, the occurrence of such contingency shall mark the beginning of a
period (herein called a “DEFAULT PERIOD”) which shall extend until such time
when all accrued and unpaid dividends for all previous quarterly dividend
periods and for the current quarterly dividend period on all shares of Series B
Junior Participating Preferred Stock then outstanding shall have been declared
and paid or set apart for payment. During each default period, in addition to
voting together with the holders of Class A Common Stock for the election
of other directors of the Corporation, all holders of Series B Junior
Participating Preferred Stock with dividends in arrears in an amount equal to
six (6) quarterly dividends thereon, voting as a single class, shall have
the right to elect two (2) directors.

(ii)           The absence of a quorum of the
holders of Class A Common Stock shall not affect the exercise by the
holders of Preferred Stock of such voting rights. After the holders of Series B
Junior Participating Preferred Stock shall have exercised their right to elect
directors in any default period and during the continuance of such period, the
number of directors shall not be increased or decreased without the approval of
the holders of a majority of the outstanding shares of Series B Junior
Participating Preferred Stock as herein provided or pursuant to the rights of
any equity securities ranking senior to or pari passu with the Series B
Junior Participating Preferred Stock.

(iii)          Unless the holders of Series B
Junior Participating Preferred Stock shall, during an existing default period,
have previously exercised their right to elect directors, 

 3
 

 

the Board of Directors
may order, or any stockholder or stockholders owning in the aggregate not less
than fifteen percent (15%) of the total number of shares of Series B
Junior Participating Preferred Stock outstanding, irrespective of series, may
request, the calling of a special meeting of the holders of Series B
Junior Participating Preferred Stock, which meeting shall thereupon be called
by the President, a Vice-President or the Secretary of the Corporation. Notice
of such meeting and of any annual meeting at which holders of Series B
Junior Participating Preferred Stock are entitled to vote pursuant to this
Paragraph (C)(iii) shall be given to each holder of record of Series B
Junior Participating Preferred Stock by mailing a copy of such notice to him at
his last address as the same appears on the books of the Corporation. Such meeting
shall be called for a time not earlier than 20 days and not later than 60 days
after such order or request or in default of the calling of such meeting within
60 days after such order or request, such meeting may be called on similar
notice by any stockholder or stockholders owning in the aggregate not less than
fifteen percent (15%) of the total number of shares of Series B Junior
Participating Preferred Stock outstanding. Notwithstanding the provisions of
this Paragraph (C)(iii), no such special meeting shall be called during the
period within 60 days immediately preceding the date fixed for the next annual
meeting of the stockholders.

(iv)          In any default period, the holders of Class A
Common Stock, and other classes of stock (including the Series B Junior
Participating Preferred Stock) of the Corporation shall continue to be entitled
to elect the whole number of directors until the holders of Series B
Junior Participating Preferred Stock shall have exercised their right to elect
two (2) directors voting as a class, after the exercise of which right (x) the
directors so elected by the holders of Series B Junior Participating
Preferred Stock shall continue in office until their successors shall have been
elected by such holders or until the expiration of the default period, and (y) any
vacancy in the Board of Directors may (except as provided in Paragraph (C)(ii) of
this SECTION 3) be filled by vote of a majority of the remaining directors
theretofore elected by the holders of the class of stock which elected the
director whose office shall have become vacant. References in this Paragraph (C) to
directors elected by the holders of a particular class of stock shall include
directors elected by such directors to fill vacancies as provided in clause (y) of
the foregoing sentence. Immediately upon the expiration of a default period, (x) the
right of the holders of Series B Junior Participating Preferred Stock as a
class to elect directors shall cease, (y) the term of any directors
elected by the holders of Series B Junior Participating Preferred Stock as
a class shall terminate, and (z) the number of directors shall be such
number as may be provided for in the amended and restated certificate of
incorporation or by-laws irrespective of any increase made pursuant to the
provisions of Paragraph (C)(ii) of this SECTION 3 (such number being
subject, however, to change thereafter in any manner provided by law or in the
amended and restated certificate of incorporation or by-laws). Any vacancies on
the Board of Directors effected by the provisions of clauses (y) and (z) in
the preceding sentence may be filled by a majority of the remaining directors.

(d)           Except
as set forth herein, holders of Series B Junior Participating Preferred
Stock shall have no special voting rights and their consent shall not be
required (except to the extent they are entitled to vote with holders of Class A
Common Stock as set forth herein) for taking any corporate action.

 4
 

 

Section 4.               CERTAIN RESTRICTIONS.

(a)           Whenever
quarterly dividends or other dividends or distributions payable on the Series B
Junior Participating Preferred Stock as provided in SECTION 2 are in
arrears, thereafter and until all accrued and unpaid dividends and
distributions, whether or not declared, on shares of Series B Junior
Participating Preferred Stock outstanding shall have been paid in full, the
Corporation shall not

(i)            declare or pay dividends on, make
any other distributions on, or redeem or purchase or otherwise acquire for
consideration any shares of stock ranking junior (either as to dividends or
upon liquidation, dissolution or winding up) to the Series B Junior
Participating Preferred Stock;

(ii)           declare or pay dividends on or make
any other distributions on any shares of stock ranking on a parity (either as to
dividends or upon liquidation, dissolution or winding up) with the Series B
Junior Participating Preferred Stock, except dividends paid ratably on the Series B
Junior Participating Preferred Stock and all such parity stock on which
dividends are payable or in arrears in proportion to the total amounts to which
the holders of all such shares are then entitled;

(iii)          redeem or purchase or otherwise
acquire for consideration shares of any stock ranking on a parity (either as to
dividends or upon liquidation, dissolution or winding up) with the Series B
Junior Participating Preferred Stock, provided that the Corporation may at any
time redeem, purchase or otherwise acquire shares of any such parity stock in
exchange for shares of any stock of the Corporation ranking junior (either as
to dividends or upon dissolution, liquidation or winding up) to the Series B
Junior Participating Preferred Stock; or

(iv)          purchase or otherwise acquire for
consideration any shares of Series B Junior Participating Preferred Stock,
except in accordance with a purchase offer made in writing or by publication
(as determined by the Board of Directors) to all holders of such shares upon
such terms as the Board of Directors, after consideration of the respective
annual dividend rates and other relative rights and preferences of the
respective series classes, shall determine in good faith will result in fair
and equitable treatment among the respective series or classes.

(b)           The
Corporation shall not permit any subsidiary of the Corporation to purchase or
otherwise acquire for consideration any shares of stock of the Corporation
unless the Corporation could, under Paragraph (A) of this SECTION 4,
purchase or otherwise acquire such shares at such time and in such manner.

Section 5.               REACQUIRED
SHARES. Any shares of Series B Junior Participating Preferred Stock
purchased or otherwise acquired by the Corporation in any manner whatsoever
shall be retired and cancelled promptly after the acquisition thereof. All such
shares shall upon their cancellation become authorized but unissued shares of
Preferred Stock and may be reissued as part of a new series of Preferred Stock
to be created by resolution or resolutions of the Board of Directors, subject
to the conditions and restrictions on issuance set forth herein.

 5
 

 

Section 6.               LIQUIDATION,
DISSOLUTION OR WINDING UP.

(a)           Upon
any liquidation (voluntary or otherwise), dissolution or winding up of the
Corporation, no distribution shall be made to the holders of shares of stock
ranking junior (either as to dividends or upon liquidation, dissolution or
winding up) to the Series B Junior Participating Preferred Stock unless,
prior thereto, the holders of shares of Series B Junior Participating
Preferred Stock shall have received an amount equal to $1.00 per share of Series B
Participating Preferred Stock, plus an amount equal to accrued and unpaid
dividends and distributions thereon, whether or not declared, to the date of
such payment (the “SERIES B LIQUIDATION PREFERENCE”). Following the payment of
the full amount of the Series B Liquidation Preference, no additional
distributions shall be made to the holders of shares of Series B Junior
Participating Preferred Stock unless, prior thereto, the holders of shares of Class A
Common Stock shall have received an amount per share (the “COMMON ADJUSTMENT”)
equal to the quotient obtained by dividing (i) the Series B
Liquidation Preference by (ii) 100 (as appropriately adjusted as set forth
in subparagraph (C) below to reflect such events as stock splits, stock
dividends and recapitalizations with respect to the Class A Common Stock)
(such number in clause (ii), the “ADJUSTMENT NUMBER”). Following the payment of
the full amount of the Series B Liquidation Preference and the Common
Adjustment in respect of all outstanding shares of Series B Junior
Participating Preferred Stock and Class A Common Stock, respectively,
holders of Series B Junior Participating Preferred Stock and holders of
shares of Class A Common Stock shall receive their ratable and
proportionate share of the remaining assets to be distributed in the ratio of
the Adjustment Number to 1 with respect to such Preferred Stock and Class A
Common Stock, on a per share basis, respectively.

(b)           In
the event, however, that there are not sufficient assets available to permit
payment in full of the Series B Liquidation Preference and the liquidation
preferences of all other series of preferred stock, if any, which rank on a
parity with the Series B Junior Participating Preferred Stock, then such
remaining assets shall be distributed ratably to the holders of such parity
shares in proportion to their respective liquidation preferences. In the event,
however, that there are not sufficient assets available to permit payment in
full of the Common Adjustment, then such remaining assets shall be distributed
ratably to the holders of Class A Common Stock.

(c)           In
the event the Corporation shall at any time after the effectiveness of this
Certificate of Designations (i) declare and pay any dividend on Class A
Common Stock payable in shares of Class A Common Stock, (ii) subdivide
the outstanding Class A Common Stock, or (iii) combine the
outstanding Class A Common Stock into a smaller number of shares, then in
each such case the Adjustment Number in effect immediately prior to such event
shall be adjusted by multiplying such Adjustment Number by a fraction the
numerator of which is the number of shares of Class A Common Stock
outstanding immediately after such event and the denominator of which is the
number of shares of Class A Common Stock that were outstanding immediately
prior to such event.

Section 7.               CONSOLIDATION,
MERGER, ETC. In case the Corporation shall enter into any consolidation,
merger, combination or other transaction in which the shares of Class A
Common Stock are exchanged for or changed into other stock or securities, cash
and/or any other property, then in any such case the shares of Series B
Junior Participating 

 6
 

 

Preferred Stock shall at
the same time be similarly exchanged or changed in an amount per share (subject
to the provision for adjustment hereinafter set forth) equal to 100 times the
aggregate amount of stock, securities, cash and/or any other property (payable
in kind), as the case may be, into which or for which each share of Class A
Common Stock is changed or exchanged. In the event the Corporation shall at any
time after the Record Date (i) declare and pay any dividend on Class A
Common Stock payable in shares of Class A Common Stock, (ii) subdivide
the outstanding Class A Common Stock, or (iii) combine the
outstanding Class A Common Stock into a smaller number of shares, then in
each such case the amount set forth in the preceding sentence with respect to
the exchange or change of shares of Series B Junior Participating
Preferred Stock shall be adjusted by multiplying such amount by a fraction the
numerator of which is the number of shares of Class A Common Stock
outstanding immediately after such event and the denominator of which is the
number of shares of Class A Common Stock that were outstanding immediately
prior to such event.

Section 8.               NO
REDEMPTION. The shares of Series B Junior Participating Preferred Stock
shall not be redeemable.

Section 9.               RANKING.
The Series B Junior Participating Preferred Stock shall rank junior to all
other series of the Corporation’s Preferred Stock as to the payment of
dividends and the distribution of assets, unless the terms of any such series
shall provide other wise.

Section 10.             AMENDMENT.
At any time when any shares of Series B Junior Participating Preferred
Stock are outstanding, neither the Amended and Restated Certificate of
Incorporation of the Corporation nor this Certificate of Designation shall be
amended, by merger, consolidation or otherwise, in any manner which would
materially alter or change the powers, preferences or special rights of the Series B
Junior Participating Preferred Stock so as to affect them adversely without the
affirmative vote of the holders of two-thirds or more of the outstanding shares
of Series B Junior Participating Preferred Stock, voting separately as a
class.

Section 11.             FRACTIONAL
SHARES. Series B Junior Participating Preferred Stock may be issued in
fractions of a share which shall entitle the holder, in proportion to such
holder’s fractional shares, to exercise voting rights, receive dividends,
participate in distributions and to have the benefit of all other rights of
holders of Series B Junior Participating Preferred Stock.

 7
 

 

IN WITNESS WHEREOF, DynCorp International, Inc.
has caused this Certificate to be signed by Stephen J. Cannon, its President
and Chief Executive Officer, this day of May 3, 2006.

	
  

  	
  DYNCORP INTERNATIONAL INC. 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  President and Chief Executive Officer

  

 

 8

EXHIBIT B

FORM OF RIGHTS CERTIFICATE

Certificate No. R-             
Rights

NOT EXERCISABLE AFTER MAY 3RD 2015 OR EARLIER IF
REDEEMED OR EXCHANGED BY DYNCORP INTERNATIONAL INC. (THE “COMPANY”). THE RIGHTS
ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $.01 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 ASSOCIATE OR AFFILIATE 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
TN SECTION 7(e) OF SUCH AGREEMENT.] [Insert
if Applicable]

Rights Certificate

DYNCORP INTERNATIONAL INC.

This certifies that,
                    
or registered assigns, is the registered owner of the number of Rights set
forth above, each of which entitles the owner thereof, subject to the terms,
provisions and conditions of the Rights Agreement, dated as of May 3, 2006
(the “Rights Agreement”), between DynCorp International Inc., a Delaware
corporation (the “Company”), and The Bank Of New York (the “Rights Agent”), to
purchase from the Company at any time after the Distribution Date (as such term
is defined in the Rights Agreement) and prior to 5:00 P.M. (New York time)
on May 3, 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 one-thousandth of a fully paid,
non-assessable share of Series B Junior Participating Preferred Stock (the
“Preferred Stock”) of the Company, at a purchase price of $ 75.00 per one
one-thousandth of a 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 May 3, 2006, based on the
Preferred Stock 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 shares of Preferred Stock 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 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 shares of Preferred
Stock or other securities, which may be purchased upon the 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 principal office of the Rights Agent and are also available
upon written request to the Company.

This Rights Certificate, with or without other Rights
Certificates, upon surrender at the principal office or offices 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 one one-thousandth
of a share of Preferred Stock 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 $.01 per Right or may be exchanged, in whole or
in part, for shares of the Class A Common Stock, or shares of preferred
stock 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.

No fractional shares of Preferred Stock will be issued
upon the exercise of any Right or Rights evidenced hereby (other than fractions
which are integral multiples of one one-thousandth of a share of Preferred
Stock, 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.

 2
 

 

No holder of this Rights Certificate, as such, shall
be entitled to vote or receive dividends or be deemed for any purpose the
holder of shares of Preferred Stock 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 stockholder of the Company or
any right to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to give consent to or withhold consent
from any corporate action, or, to receive notice of meetings or other actions
affecting stockholders (except as provided in the Rights Agreement), or to
receive dividends or subscription rights, or otherwise, until the Right or
Rights evidenced by this 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.

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

Dated as of                    ,
        

	
  ATTEST:

  	
  DYNCORP INTERNATIONAL INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title

  
	
   

  	
   

  
	
   

  	
   

  
	
  Countersigned:

  	
  THE BANK OF NEW YORK

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title

  

 

 3

FORM OF REVERSE SIDE OF RIGHTS CERTIFICATE

FORM OF ASSIGNMENT

(To be executed by the registered holder if such

holder desires to transfer 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:

  	
   

  

 

Certificate

The undersigned hereby certifies by checking the
appropriate boxes that:

(1) the Rights evidenced by 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:

  	
   

  

 

 

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.

 

 2

 

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires to exercise Rights

represented by the Rights Certificate.)

To:          DYNCORP INTERNATIONAL
INC.

The undersigned hereby irrevocably elects to exercise
__________ Rights represented by this Rights Certificate to purchase the shares
of Preferred Stock 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 print name and address)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Please insert social security

  	
   

  
	
  or other identifying number)

  	
   

  

 

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

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Please print name and address)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Please insert social security

  	
   

  
	
  or other identifying number)

  	
   

  

 

	
  Dated: 

  	
   

  	
  ,

  	
   

  	
   

  
	
   

  
	
   

  	
   

  
	
  Signature

  	
   

  
	
  Signature Guaranteed:

  	
   

  

 

 

Certificate

The undersigned hereby certifies by checking the
appropriate boxes that:

(1) the Rights evidenced by 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:

  	
   

  

 

 

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.

 

 2

EXHIBIT C

SUMMARY OF RIGHTS TO PURCHASE

PREFERRED STOCK

On May 3, 2006, the Board of Directors (the “Board”)
of DynCorp International Inc. (the “Company”) declared as a dividend
distribution of one Right for each outstanding share of Company Class A
Common Stock to stockholders of record at the close of business on May 9,
2006, (the “Record Date”). Each Right entitles the registered holder to
purchase from the Company one one-thousandth of a share (a “Unit”) of Series B
Junior Participating Preferred Stock, no par value (the “Series B
Preferred Stock”) at a Purchase Price of $75.00 per Unit, subject to adjustment.
The description and terms of the Rights are set forth in a Rights Agreement
(the “Rights Agreement”) between the Company and The Bank of New York, as
Rights Agent.

Initially, the Rights will be attached to all Class A
Common Stock certificates representing shares then outstanding, and no separate
Rights Certificates will be distributed. Subject to certain exceptions
specified in the Rights Agreement, the Rights will separate from the Class A
Common Stock and a 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 15% or more of the outstanding shares of Class A
Common Stock other than as a result of repurchases of stock by the Company or
certain inadvertent actions by institutional or certain other stockholders or (ii) 10
business days (or such later date as may be determined by action of the Board
prior to such time as any Person becomes an Acquiring Person 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. Until the
Distribution Date, (i) the Rights will be evidenced by the Class A
Common Stock certificates together with this Summary of Rights and will be
transferred with and only with such Class A Common Stock certificates, (ii) new
Class A Common Stock 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 Class A Common Stock
outstanding will also constitute the transfer of the Rights associated with the
Class A Common Stock 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 shares of Preferred
Stock will be issued. The rights agreement excludes Veritas Capital Management,
L.L.C. (“Veritas”) from being considered an acquiring person until Veritas
first ceases to beneficially own 15% or more of our Class A Common Stock
then outstanding. The rights plan also generally exempts persons who may be
deemed to beneficially own shares of the Company due to their ownership of
shares of Veritas, as well as certain persons who may be deemed to beneficially
own shares of the Company due to their ownership of shares of transferees of at
least 15% of our then outstanding Class A Common Stock from Veritas.

The Rights are not exercisable until the Distribution
Date and will expire at 5:00 P.M. (New York time) on May 3, 2015,
unless 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 Class A
Common Stock as of the close of business on the Distribution Date and,
thereafter, the separate Rights Certificates alone will represent the Rights. Except
as otherwise determined by the Board of Directors, only shares of Class A
Common Stock issued prior to the Distribution Date will be issued with 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, Class A Common Stock (or, in certain circumstances, cash, property
or other securities of the Company) having a value equal to two times the
exercise price of the Right. Notwithstanding any of the foregoing, following
the occurrence of the event set forth 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.

For example, at an exercise price of $75.00 per Right,
each Right not owned by an Acquiring Person (or by certain related parties)
following an event set forth in the preceding paragraph would entitle its
holder to purchase $150.00 worth of Class A Common Stock (or other
consideration, as noted above) for $75.00. Assuming that the Class A
Common Stock had a per share value of $75.00 at such time, the holder of each
valid Right would be entitled to purchase 2 shares of Class A Common Stock
(without taking into account payment of cash in lieu of fractional shares) for
$75.00

In the event that, at any time following the time that
a Person became an Acquiring Person, (i) the Company engages in a merger
or other business combination transaction in which the Company is not the
surviving corporation, (ii) the Company engages in a merger or other
business combination transaction in which the Company is the surviving
corporation and the Class A Common Stock of the Company is 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 (other than any
such transactions with certain exempt persons) (except Rights which have
previously been voided as set forth above) shall thereafter have the right to
receive, upon exercise, Class A Common Stock of the acquiring company
having a value equal to two times the exercise price of the Right.

At any time after a person becomes an Acquiring Person
and prior to the acquisition by a person or group of a majority of the
outstanding Class A Common Stock, the Board may exchange the Rights (other
than Rights owned by such person or group which have become void), in whole or
in part, at an exchange ratio of one share of Class A Common Stock, or one
one-thousandth of a share of Preferred Stock (or of a share of a class or
series of the Company’s preferred stock having equivalent rights, preferences
and privileges), per Right (subject to adjustment).

At any time until a Person becomes an Acquiring
Person, the Company may redeem the Rights in whole, but not in part, at a price
of $0.01 per Right (payable in cash, Class A Common Stock or other consideration
deemed appropriate by the Board of Directors).

As long as the Rights are redeemable, the Company may
in its sole and absolute discretion supplement or amend the Agreement without
the approval of any holders of the Rights 

 2
 

 

provided that the amendment
or supplement does not (a) adversely affect the interests of holders of
Rights (other than an Acquiring Person and its Affiliates and Associates), (b) cause
the Rights again to be redeemable, or (c) cause the Agreement to become
amendable. Further, no supplement or amendment can be made which changes the (i) the
Redemption Price, (ii) the rights of any Exempted Entity (without its
prior written consent, not to be unreasonably withheld), or (iii) changes
or affects the rights, duties, liabilities, or obligations of the Rights Agent
(without its prior written consent).

 

 3Exhibit 10.11

EMPLOYMENT
AGREEMENT

This Employment
Agreement (the “Agreement”) is hereby entered into effective as of April 12,
2006, between DynCorp International LLC, a Delaware limited liability company
(the “Company”), and R. Y. Morrel (“Executive”).

In consideration
of the mutual promises and covenants contained herein, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

1. Employment.

1.1. Position.
During the Term (as hereinafter defined) of this Agreement, and subject to the
terms and conditions set forth herein, the Company agrees to employ Executive
as its Senior Vice President and General Counsel reporting to the President of
the Company.

1.2. Fulfillment
of Duties. During the Term of this Agreement, Executive shall
(i) devote her full business time and best efforts to the performance of
her services hereunder, excluding vacation periods and periods of illness or
incapacity, and (ii) perform her services hereunder faithfully, diligently
and to the best of her skill and ability.

1.3. Location.
During the Term of this Agreement, Executive will perform her duties and
services at the Company’s Falls Church, Virginia office or such location(s) as
she shall deem appropriate, except that Executive agrees to make such business
trips to the Company’s other locations as may be reasonable and necessary in
the performance of her services hereunder.

2. Compensation
and Benefits.

2.1. Salary.
In consideration of and as compensation for the services agreed to be performed
by Executive hereunder, the Company agrees to pay Executive during the Term of
this Agreement a base annual salary (the “Base Salary”) of not less than
$330,000 per year, less standard deductions 
and withholdings, payable bi- monthly in accordance with the Company’s
regular payroll practices. The Company will review Executive’s Base Salary and
other compensation (including bonuses and incentive compensation) from time to
time during the Term of this Agreement and, at the recommendation of the Compensation
Committee (the “Committee”) of the Board, may increase his Base Salary or other
compensation (including incentive compensation) from time to time. Any increase
in Base Salary or other compensation (including incentive compensation) shall
in no way limit or reduce any other obligation of the Company hereunder and,
once established at an increased rate, Executive’s Base Salary hereunder shall
not be reduced.

   
 
 1
 

 

 

2.2. Incentive
Compensation. During the Term of this Agreement, in addition
to the Base Salary provided in Section 2.1 above, Executive shall be
eligible to receive additional incentive compensation in an amount not to
exceed amounts prescribed in the Company’s Executive Incentive Compensation
Plan (“Plan”) using a target incentive percentage of no less than 50% (“Incentive
Compensation”); provided, however, that no portion of her Incentive
Compensation shall be paid in shares of the Company unless the Executive
requests the delivery of such shares. The Executive shall also be entitled to
the benefits of any modifications or amendments to such Plan adopted after the
effective date hereof that enhance benefits payable under the Plan.

2.3. Other
Benefits. During the Term of this Agreement, Executive shall
be entitled to the benefits listed on Exhibit A, and any other benefits
adopted after the effective date of this Agreement for the benefit of senior
executives of the Company; provided that such additional benefits shall not in
any way limit or detract from the benefits described on Exhibit A.

3. Term.

3.1. Term.
The term of employment under this Agreement means the period that commenced on April 1,
2006 and expiring at midnight on March 31, 2011; provided, that this
Agreement will automatically renew for additional periods of one (1) year
each commencing on April 1 of each successive year following the initial
Term unless written notice of intent not to renew is delivered by the Company
or the Executive to the other party at least 90 days prior to the effective
date of any renewal hereof.

3.2. Termination
of Employment

Executive’s
employment with the Company may be terminated under the following conditions:

3.2.1. Retirement, Death or Disability.
Executive’s employment with the Company shall terminate effective upon the date
of Executive’s Retirement from the Company (as defined in Section 5.5),
resignation from the Company, death or “Complete Disability” (as defined in Section 5.1).

3.2.2. For Cause. The Company
may terminate Executive’s employment under this Agreement for Cause (as defined
in Section 5.2) by delivery of written notice to Executive specifying the
Cause or Causes relied upon for such termination. Any notice of termination
given pursuant to this Section 3.2.2 shall effect termination as of the
date specified in such notice or, in the event no such date is specified, on
the last day of the month in which such notice is delivered or deemed delivered
as provided in Section 7.3 below.

   
 
 2
 

 

 

3.2.3. Without Cause. The
Company may terminate Executive’s employment under this Agreement at any time
and for any reason by delivery of written notice of such termination to
Executive. Any notice of termination given pursuant to this Section 3.2.3
shall take effect as of the date specified in such written notice.

3.2.2. Termination by Executive for  Good 
Cause. Executive may terminate Executive’s employment
with the Company for Good Cause (as defined in Section 5.3) upon thirty
(30) days written notice to the Company.

3.2.3. Termination by Mutual Agreement of the
Parties. Executive’s employment pursuant to this Agreement
may be terminated at any time upon the mutual written agreement of the parties.
Any such termination of employment shall have the consequences specified in
such mutual agreement.

3.2.4. Board/Committee Resignation.
Upon termination of Executive’s employment for any reason, Executive agrees to
resign, as of the date of such termination and to the extent applicable, from
the Board (and any committees thereof) and the Board of Directors (and any
committees thereof) of any of the Company’s affiliates.

4. Compensation
upon Termination.

4.1. Retirement,
Death or Complete Disability. If Executive’s employment is
terminated by her Retirement, death or Complete Disability, Executive (or her
heirs or legal representative) shall be entitled to Executive’s Base Salary and
accrued and unused vacation earned through the date of termination, subject to
standard deductions and withholdings. In addition, upon Executive’s (or her
heirs or legal representative) furnishing to the Company an executed waiver and
release of claims (a form of which is attached hereto as Exhibit B, which
will be revised for signature by Executive’s heirs or legal representative if
applicable), Executive (or her heirs or legal representative) shall be entitled
to:

4.1.1. a pro rated portion of
her Incentive Compensation that would be payable to the Executive based on
projected Company performance through the termination date, less standard
deductions and withholdings; and

4.1.2. exercise any vested
options to purchase stock (common or otherwise) in the Company granted to
Executive pursuant to any plan, agreement or otherwise, or any  equivalent or similar vested rights which
appreciate or tend to appreciate as the value of the Company’s stock
appreciates, such options and rights to be in accordance with the terms of 

   
 
 3
 

 

 

any applicable plan or agreement, it being understood
that the provisions of this Section 4.1.2 shall have no applicability to
the rights of Executive as a Class B Member of DIV Holding LLC and nothing
contained in this Agreement shall operate to change, amend or vary any of the
terms of the Amended and Restated Limited Liability Company Operating Agreement
of DIV Holding LLC, as amended from time to time; provided, however, that
Executive or her estate or legal representative shall have a period of 90 days
following the date of termination within which to exercise or satisfy all such
options or rights.

4.2.
Termination for Cause by the Company or Resignation by Executive.
If Executive’s employment is terminated by the Company for Cause or if
Executive resigns (other than for Good Cause), the Company shall pay Executive’s
accrued Base Salary and accrued and unused vacation benefits earned through the
date of termination at the rate in effect at the time of the notice of
termination to Executive or Executive’s notice of resignation to the Company.

4.3.
Termination without Cause by the Company or Termination by the Executive for
Good Cause. If the Company terminates Executive’s employment
without Cause (except under any circumstance in which Section 4.1 is
applicable to Executive, in which case this Section 4.3 shall  not 
apply), or if the Executive terminates this Agreement for Good Cause,
Executive shall be entitled to Executive’s Base Salary and a pro rated portion
of her Incentive Compensation that would be payable to the Executive based on
projected Company performance through the termination date, less standard
deductions and withholdings, and accrued and unused vacation earned through the
date of termination, subject to standard deductions and withholdings. In
addition, upon Executive’s furnishing to the Company an executed copy of the
waiver and release of claims (a form of which is attached hereto as Exhibit B),
Executive (or her heirs or legal representative) shall be entitled to:

4.3.1. a payment equivalent to
2.0 times the Executive’s Annual Base Compensation in effect at the time of
Termination, less standard deductions 
and withholdings, payable in two equal lump sum payments  the first payment on the first payroll date
that is six months following such termination, and the second payment on the
first payroll date that is twelve months following such termination, in
accordance with the Company’s regular payroll practices;

4.3.2. exercise any vested
options to purchase stock (common or otherwise) in the Company granted to
Executive pursuant to any plan, agreement or otherwise, or any equivalent or
similar vested rights which appreciate or tend to appreciate as  the 
value of the Company’s stock appreciates, such options and rights to be
in accordance with the terms of any applicable plan or agreement, it being
understood that the provisions of this Section 4.3.2 shall have no
applicability to the rights of Executive as 

   
 
 4
 

 

 

a Class B Member of DIV Holding LLC and nothing
contained in this Agreement shall operate to change, amend or vary any of the
terms of the Amended and Restated Limited Liability Company Operating Agreement
of DIV Holding LLC, as amended from time to time; provided, however, that
Executive or her estate or legal representative shall have a period of 90 days
following the date of termination within which to exercise or satisfy all such
options or rights; and

4.3.3. elect reimbursement to
the Executive (or her heirs or legal representatives) for the same portion of Executive’s
COBRA health insurance premium that it paid during Executive’s employment up
until the earlier of either (i) the last day of Executive’s COBRA health
insurance benefits or, ii) the date on which Executive becomes covered under
any other group health plan (as an employee or otherwise).

5. Definitions.
For purposes of this Agreement, the following terms shall have the following
meanings:

5.1. Complete  Disability. “Complete  Disability” shall mean the inability of
Executive to perform Executive’s duties under this Agreement because Executive
has become permanently disabled within the meaning of any policy of disability
income insurance covering employees of the Company then in force. In the event
the Company has no policy of disability income insurance covering employees of
the Company in force when Executive becomes disabled, the term “Complete
Disability” shall mean the inability of Executive to perform Executive’s
duties  under this Agreement by reason of
any incapacity, physical or mental, which the Board, based upon medical advice
or an opinion provided by a licensed 
physician acceptable to the Board, determines to have incapacitated  Executive from satisfactorily performing all
of Executive’s usual services for the Company for a period of at least one
hundred twenty (120) days during any twelve (12) month period  (whether or not consecutive). Based upon such
medical advice or opinion, the determination of the Board shall be final and
binding and the date such determination is made shall be the date of such
Complete Disability for purposes of this Agreement.

5.2. For Cause.
For “Cause” shall mean:

5.2.1. the willful and continued
failure by Executive to substantially perform her duties with the Company
(other than any such failure resulting from his incapacity due to physical or
mental illness, injury or disability), after a written demand for substantial
performance is delivered to her by the Board that identifies, in reasonable
detail, the manner in which the Board believes that Executive has not
substantially performed her duties in good faith;

   
 
 5
 

 

 

5.2.2. the willful engaging by
Executive in conduct that causes material harm to the Company, monetarily or
otherwise;

5.2.3. Executive’s conviction of
a felony arising from conduct during the Term of this Agreement;

5.2.4. Executive’s willful
malfeasance or willful misconduct in connection with Executive’s duties
hereunder; or

5.2.5. For purposes of this
Subsection 5.2 no act, or failure to act, on Executive’s part shall be
considered “willful” unless done, or omitted to be done, by him not in good
faith and without reasonable belief that her action or omission was in the best
interest of the Company or its shareholders.

5.3.
Good  Cause.
“Good Cause” shall mean any of the following actions taken by the Company or
any subsidiary that employs the Executive: assignment of the Executive to
duties that are materially inconsistent with her status as a senior executive
or which represent a substantial diminution of her duties or responsibilities
in the Company, a reduction in Executive’s Base Salary, except in connection
with an across-the-board salary reduction for all executives, a failure by the
Company to pay any of Executive’s compensation in accordance with Company
policy, a substantial reduction in or elimination of any of the benefits
described on Exhibit A, the relocation of the Executive to a location more
than 35 miles from Washington, D.C. without Executive’s consent, change of
Executive’s title, a failure to comply with the obligations of the Company
under Sections 1.1 and 1.2 hereof, or the failure of a successor to the Company
to confirm in writing within 5 business days of its succession its obligation
to assume and perform all obligations of this Agreement, provided that
any such events described in this Section 5.3 shall constitute Good Cause
only if the Company fails to cure such event within 30 days after receipt from
Executive of written notice of the event which constitutes Good Cause.

5.4. Annual
Base Compensation. “Annual Base Compensation” shall mean the
total of the Executive’s most recent annual salary and target incentive under
the Company’s Executive Incentive Plan.

5.5. Retirement.
“Retirement” shall mean the voluntary retirement of the Executive from the
Company (a) at or after age 62 or (b) at any time after the
combination of the Executive’s age and service with the company or any
predecessor or subsidiary equals or exceeds 75 years.

6. Non-Solicitation and
Confidentiality.

6.1.         Non-Solicitation. Executive hereby covenants and agrees
that during the Term of this Agreement and for a period of one year following
the termination 

   
 
 6
 

 

 

of this Agreement,
she will not directly or through a third party employ or solicit for employment
any employees of the Company or any persons who were employees of the Company
at any time during the twelve-month period immediately prior to any such
solicitation or proposed solicitation or employment.

6.2.         Confidentiality.    Except as required by law or an
order of a court or governmental agency with jurisdiction, the Executive shall
not, during the period he is employed by the Company and for a period of one
year thereafter, disclose Confidential Information (as defined below) to any
person or entity for any reason or purpose whatsoever. Executive shall take all
reasonable steps to safeguard the Confidential Information and to protect it
against disclosure, misuse, espionage, loss and theft. All such Confidential
Information shall remain the exclusive property of the Company.

6.3          Confidential Information.    For
purposes of this Agreement and specifically Section 6.2 above, “Confidential
Information” shall mean non-public information concerning the Company’s
business or operations, plans, strategies, prospects or objectives; its sales,
services, support and marketing plans, practices and operations; the prices,
costs and details of its services or prospective services; the financial
condition and results of its operations; information received from third
parties under confidential conditions; the Company’s personnel and compensation
policies; and means of gaining access to the Company’s computer data systems
and related information. “Confidential Information” shall not include general
knowledge based on Executive’s experience in the industry, information
generally known in the industry, or information that is or becomes generally
available to the public other than as a result of disclosure by the Executive.

7. Miscellaneous.

7.1. Indemnification.
The Company agrees at all times during the term of this Agreement and thereafter,
to indemnify, defend and hold the Executive, her heirs, estate and legal
representatives harmless from, any and all claims, liabilities, demands,
allegations, causes of action, or other threats, related to or in any way
arising out of, the services provided by the Executive under this Agreement or
at the request of the Company; provided, however, that this indemnification
shall not apply to acts or omissions that are the result of conduct that would
preclude the Executive from receiving indemnification under Section 145 of
the Delaware General Corporation Law in effect from time to time. Upon receipt
of notice of the assertion of any such claim, liability, demand, allegation,
cause of action or other threat, the Company shall pay the Executive the cost
of her defense by a counsel mutually acceptable to the Company and Executive,
and shall be responsible for the full payment of any judgment including damages
or penalties, including punitive damages or penalties, that may be assessed or
payable as a result of a settlement to which the Company and the Executive
consent, including the deductible portion of any loss covered by Director and 

   
 
 7
 

 

 

Officer Liability
Insurance. Nothing herein shall limit the rights of the Executive to the
protections afforded by the Company’s Directors and Officers Liability
Insurance as in effect from time to time.

7.2. Compliance
with Company Policies. During the term of this Agreement, the
Executive shall at all times comply with all applicable Company policies and
procedures, including the Company’s Standards of Business Conduct.

7.3. Notices.
Any written notice, required or permitted under this Agreement, shall be deemed
sufficiently given if either hand delivered or if sent by fax or overnight
courier. Written notices must be delivered to the receiving party at her or its
address on the signature page of this Agreement. The parties may change
the address at which written notices are to be received in accordance with this
section.

7.4. Assignment.
Executive may not assign, transfer, or delegate her rights or obligations
hereunder and any attempt to do so shall be void. This Agreement shall be
binding upon and shall inure to the benefit of the Company and its successors
and assigns and the term “Company” as used herein shall include such successors
and assigns to the extent applicable.

7.5. Entire
Agreement. This Agreement, including Exhibits A and B,
contains the entire agreement of the parties with respect to the subject matter
hereof, and all  other prior agreements,
written or oral, are hereby superseded and are of no further force or effect;
provided, however, that any and all prior agreements covering the benefits
described in Exhibit A shall continue in full force and effect in
accordance with their terms. This Agreement may be modified or amended only by
a written agreement that is signed by the Company and Executive. No waiver of
any section or provision of this Agreement will be valid unless such waiver is
in writing and signed by the party against whom enforcement of the waiver is
sought. The waiver by the Company of any section or provision of this Agreement
shall not apply to any subsequent breach of this Agreement. Captions to the
various sections in this Agreement are for the convenience of  the parties only and shall not affect the
meaning or interpretation of this Agreement. This Agreement may be executed in
several counter-parts, each of which shall be deemed an original, but together
they shall constitute one and the same instrument.

7.6. Severability.
The provisions of this Agreement shall be deemed severable, and if any part of
any provision is held illegal, void, or invalid under applicable law such
provision may be changed to the extent reasonably necessary to make the
provision, as so changed, legal, valid and binding. If any provision of this
Agreement is held illegal, void, or invalid in its entirety, the remaining
provisions of this Agreement shall not in any way be affected or impaired but
shall remain binding in accordance with their terms.

   
 
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7.7  Withholding Taxes.
The Company may withhold from any amounts payable under this Agreement such
Federal, state and local taxes as may be required to be withheld pursuant to
any applicable law or regulation.

7.8. Applicable
Law. This Agreement and the rights and obligations of the
Company and Executive thereunder shall be governed by and construed and
enforced under the laws of the State of New York without regard to New York’s
conflict of laws rules.

[The remainder of
this page is intentionally left blank]

   
 
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In
Witness Whereof, the parties have executed this Agreement effective as of the
date first above written.

 

	
  

  	
   

  	
  DynCorp International LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
  /s/ Stephen J. Cannon

  
	
   

  	
   

  	
  DynCorp
  International

  
	
   

  	
   

  	
  Attn: President

  
	
   

  	
   

  	
  8445 Freeport
  Pkwy

  
	
   

  	
   

  	
  Irving, Texas
  75063

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Schulte Roth & Zabel LLP

  
	
   

  	
   

  	
  Attn:  Benjamin M.
  Polk, Esq.

  
	
   

  	
   

  	
  919 Third Avenue

  
	
   

  	
   

  	
  New York, NY 10022

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Executive

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R.Y. Morrel

  
	
   

  	
   

  	
  R.Y. Morrel

  
	
  at:

  	
   

  	
  DynCorp International

  
	
   

  	
   

  	
  3190 Fairview Park Drive

  
	
   

  	
   

  	
  Falls Church, VA 22042

  
				

 

   
 
 10

 

EXHIBIT A

Benefits
for Executive’s Employment Agreement

1.                                       Benefits,
including Disability, Long Term, Life Insurance, and Salary Continuation, no
less favorable to the Executive than that set forth in the  Enhanced Executive Benefit Program.

2.                                       Equity
in DIV Holding LLC in accordance with the terms set forth in the Amended and
Restated Limited Liability Company Operating Agreement of DIV Holding LLC dated
as of February 11, 2005 as amended by Amendment No. 1 dated as of November 22,
2005 and Amendment No. 2 dated as of March 14, 2006, and as
hereinafter amended from time to time.

3.                                       Specialty
insurance (such as kidnap and ransom and company travel insurance) under which
Executive was covered immediately preceding the commencement of the Term of
this Agreement.

4.                                       Standard
medical plan options no less favorable to the Executive than that offered by
the Company immediately preceding the commencement of the Term of this
Agreement.

5.                                       Automobile
Allowance no less favorable to the Executive than that provided by the Company
immediately preceding the commencement of the Term of this Agreement.

6.                                       Vacation
in accordance with the Company’s Personal Time Off Policy.

7.                                       Standard
Company holidays plus two floating holidays.

8.                                       Executive
Incentive Compensation plan with terms no less favorable to the Executive than
the Plan or practice in effect immediately preceding the commencement of the
Term of this Agreement.

9.                                       Director &
Officer Liability Insurance as maintained by the Company for the protection of
the members of its Board of Directors.

10.                                 Annual
physical examination (to the extent not reimbursed by group health coverage.)

 

 i

 

EXHIBIT B

RELEASE
AND WAIVER OF CLAIMS

In consideration
of the payments and other benefits set forth in the Employment Agreement dated April __,
2006, to which this form is attached, I, R. Y. Morrel, hereby furnish DynCorp
International Inc. (the “Company”), with
the following release and waiver (“Release and Waiver”).

I hereby release, and forever discharge the Company, its officers,
directors, agents, employees, stockholders, successors, assigns affiliates and
benefit plans, all of their past and present officers, directors, agents, and
insurers, in all capacities, including individually (all of which organizations
and persons are hereinafter collectively identified as the “Company Parties”), from any and all claims, demands,
actions, indemnities, liabilities, or obligations of whatever kind and nature,
which I may have had, may now have, or may hereafter claim to have through the
date this Release and Waiver is executed, whether known or unknown, contingent
or otherwise, at law or in equity, including, without limitation, any claim
arising at any time prior to and including my employment termination date with
respect to any claims relating to my employment and the termination of my
employment, all compensation and benefits relating to my employment (including
but not limited to, claims for salary, bonuses, commissions, stock, stock
options, vacation pay, fringe benefits, severance pay or any form of
compensation); any claim of discrimination based on my race, color, religion,
sex, national origin, or disability, if any;  any claim that the Company
Parties have violated any federal, state or local statute, regulation, or
ordinance with respect to my employment or the cessation thereof, including,
without limitation, Title VII of the Civil Rights Act of 1964, 42 U.S.C.
§ 1981,  the Employee Retirement
Income Security Act of 1974, the Family and Medical Leave Act, and the
ordinances of the County _______ and the City of _________; any claim that the
Company Parties have wrongfully terminated my employment or breached any oral,
written, express, or implied employment agreement;  any claim that the
Company Parties have intentionally or negligently inflicted emotional distress,
mental anguish or humiliation on me; any claim of the breach of any implied
covenant of good faith and fair dealing; any claim of damages, monetary or
other personal relief, and/or attorney’s fees in any administrative and/or
judicial proceeding initiated by me, by any third party on my behalf, or by any
governmental authority prior to or following my execution of this Release and
Waiver;  any claim of libel, slander and/or defamation of character;
 any retaliation, “whistleblower,” or public policy claim; and  any
other claim of whatever kind not specifically identified in this Release and
Waiver; provided, however, that this release does not extend to and will not
release the Company from any of its obligations under the Employment Contract
or Exhibit A thereof.

I acknowledge that, among
other rights, I am waiving and releasing any rights I may have under ADEA, that
this Release and Waiver is knowing and voluntary, and that the consideration
given for this Release and Waiver is in addition to anything of value to which
I was already entitled as an Executive of the 

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Company. I further
acknowledge that I have been advised, as required by the Older Workers Benefit
Protection Act, that: (a) the Release and Waiver granted herein does not
relate to claims which may arise after this Release and Waiver is executed; (b) I
have the right to consult with an attorney, at my expense, prior to executing
this Release and Waiver (although I may choose voluntarily not to do so); (c) I
have twenty-one (21) days from the date of termination of my employment with
the Company in which to consider  this
Release and Waiver (although I may choose voluntarily to execute this Release
and Waiver earlier); (d) I am entitled to revoke my consent to this
Release and Waiver within seven (7) days following the execution of this
Release by delivering written revocation notice to ___________ at [Address] and
(e) this Release and Waiver shall not be effective until the seven (7) day
revocation period has expired. If I timely revoke this Release and Waiver after
signing it, this Release and Wavier will become null and void and the Company
will have no obligation to provide me any of the consideration given for this
Release and Waiver.

 

 ii

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