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EXHIBIT 4.1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
and
Computershare Trust Company, N.A.
as Rights Agent
Second Amended and Restated Rights Agreement
Dated as of February 8, 2011
 
 

 

TABLE OF CONTENTS
 
 
			
	 
	 
	Page

	Section 1.
	Certain Definitions
	2

	Section 2.
	Appointment of Rights Agent
	5

	Section 3.
	Issuance of Right Certificates
	6

	Section 4.
	Form of Right Certificates
	7

	Section 5.
	Countersignature and Registration
	8

	Section 6.
	Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates
	8

	Section 7.
	Exercise of Rights, Purchase Price; Expiration Date of Rights
	9

	Section 8.
	Cancellation and Destruction of Right Certificates
	10

	Section 9.
	Availability of Shares of Preferred Stock
	10

	Section 10.
	Preferred Stock Record Date
	11

	Section 11.
	Adjustment of Purchase Price, Number and Kind of Shares and Number of Rights
	12

	Section 12.
	Certificate of Adjusted Purchase Price or Number of Shares
	19

	Section 13.
	Consolidation, Merger or Sale or Transfer of Assets or Earnings Power
	19

	Section 14.
	Fractional Rights and Fractional Shares
	22

	Section 15.
	Rights of Action
	24

	Section 16.
	Agreement of Right Holders
	24

	Section 17.
	Right Certificate Holder Not Deemed a Stockholder
	24

	Section 18.
	Concerning the Rights Agent
	25

	Section 19.
	Merger or Consolidation or Change of Name of Rights Agent
	25

	Section 20.
	Duties of Rights Agent
	26

	Section 21.
	Change of Rights Agent
	28

	Section 22.
	Issuance of New Right Certificates
	29

 
 

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	Section 23.
	Redemption and Termination
	29
	 

	Section 24.
	Exchange
	30
	 

	Section 25.
	Notice of Certain Events
	31
	 

	Section 26.
	Notices
	31
	 

	Section 27.
	Supplements and Amendments
	32
	 

	Section 28.
	Successors
	32
	 

	Section 29.
	Benefits of this Rights Agreement
	32
	 

	Section 30.
	Determinations and Actions by the Board of Directors of the Company
	32
	 

	Section 31.
	Severability
	33
	 

	Section 32.
	Governing Law
	33
	 

	Section 33.
	Counterparts
	33
	 

	Section 34.
	Descriptive Headings
	33
	 

	Section 35.
	Force Majeure
	33
	 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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INDEX OF DEFINED TERMS
					
	 
	Page
	 
	 
	Page

	Acquiring Person
	2
	 
	Original Rights
	3

	Affiliate
	3
	 
	Person
	5

	Associate
	3
	 
	Preferred Stock
	5

	Authorized Officer
	26
	 
	Principal Party
	20

	Beneficial Owner
	3
	 
	Purchase Price
	9

	Beneficial Ownership
	3
	 
	Record Date
	1

	beneficially own
	3
	 
	Redemption Date
	9

	Business Day
	4
	 
	Redemption Price
	29

	close of business
	4
	 
	Right
	1

	Common Stock
	4
	 
	Right Certificate
	6

	Common Stock equivalents
	13
	 
	Rights Agent
	1

	Company
	1
	 
	Rights Agreement
	1

	Current Value
	13
	 
	Section 11(a)(ii) Trigger Date
	14

	Distribution Date
	6
	 
	Securities Act
	5

	equivalent preferred shares
	14
	 
	Security
	15

	Exchange Act
	3
	 
	Spread
	13

	Exchange Ratio
	30
	 
	Stock Acquisition Date
	5

	Exempt Person
	4
	 
	Subsidiary
	5

	Expiration Date
	9
	 
	Substitution Period
	14

	Final Expiration Date
	9
	 
	Summary of Rights
	6

	GM
	5
	 
	Tax Item
	5

	Initial Rights Agreement
	1
	 
	then outstanding
	2

	invalidation time
	12
	 
	Trading Day
	16

	Nasdaq
	5
	 
	Warrant Agreement
	5

	NYSE
	5
	 
	Warrants
	5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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SECOND AMENDED AND RESTATED RIGHTS AGREEMENT
Second Amended and Restated Rights Agreement, dated as of February 8, 2011 (as amended, supplemented or otherwise modified from time to time, this “Rights Agreement”) between AMERICAN AXLE & MANUFACTURING HOLDINGS, INC., a Delaware corporation (the “Company”), and Computershare Trust Company, N.A., as Rights Agent (the “Rights Agent”).
RECITALS
WHEREAS, on September 15, 2003, the Board of Directors of the Company authorized and declared a dividend of one preferred share purchase right (a “Right”) for each share of Common Stock (as defined below) of the Company outstanding as of the close of business (as defined below) on September 25, 2003 (the “Record Date”), each Right representing the right to purchase one one-thousandth (subject to adjustment) of a share of Preferred Stock (as defined below), upon the terms and subject to the conditions herein set forth, and the Board of Directors of the Company has further authorized and directed the issuance of one Right (subject to adjustment as provided herein) with respect to each share of Common Stock that shall become outstanding between the Record Date and the earlier of the Distribution Date and the Expiration Date (as such terms are hereinafter defined); provided, however, that Rights may be issued with respect to shares of Common Stock that shall become outstanding after the Distribution Date and prior to the Expiration Date in accordance with Section 22;
WHEREAS, on September 15, 2003, the Company and the Rights Agent (formerly known as EquiServe Trust Company, N.A.) entered into a Rights Agreement between the Company and the Rights Agent (the “Initial Rights Agreement”);
WHEREAS, on October 30, 2009, the Company amended and restated the Initial Rights Agreement (the “First Amended Rights Agreement”) in order to protect the Company's ability to utilize the Tax Items (as defined below);
WHEREAS, the Board of Directors of the Company has determined that it is in the best interests of the Company, its shareholders and any other relevant constituencies of the Company to amend and restate the Rights Agreement to exclude protections specific to the Tax Items; 
WHEREAS, the Company and the Rights Agent wish to amend and restate the First Amended Rights Agreement; and
WHEREAS, all acts and things necessary to make this Rights Agreement a valid agreement according to its terms have been done and performed, and the execution and delivery of this Rights Agreement by the Company has been in all respects authorized by the Company.
NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties hereby agree as follows:

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Section1.    Certain Definitions.  For purposes of this Rights Agreement, the following terms have the meaning indicated:
 
(a)“Acquiring Person” shall mean any Person (as defined below) who or which shall be the Beneficial Owner (as defined below) of 15% or more of the shares of Common Stock then outstanding, but shall not include an Exempt Person (as defined below); provided, however, that if the Board of Directors of the Company determines in good faith that a Person who would otherwise be an “Acquiring Person” has become such inadvertently (including, without limitation, because (A) such Person was unaware that it beneficially owned a percentage of 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 Common Stock but had no actual knowledge of the consequences of such Beneficial Ownership under this Rights 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 Rights Agreement unless and until such Person shall have failed to divest itself, as soon as practicable, if the Company so requests, of Beneficial Ownership of a sufficient number of shares of Common Stock so that such Person would no longer otherwise qualify as an “Acquiring Person”.  
 
Notwithstanding the foregoing: 
(i)no Person shall be deemed an “Acquiring Person” as the result of an acquisition of shares of Common Stock by the Company which, by reducing the number of shares outstanding, increases the proportionate number of shares beneficially owned by such Person to 15% or more of the shares of Common Stock then outstanding; provided, however, that if a Person shall become the Beneficial Owner of 15% or more of the shares of Common Stock then outstanding by reason of such share acquisitions by the Company referred to in this clause (ii) and thereafter becomes the Beneficial Owner of any additional shares of Common Stock (other than pursuant to a dividend or distribution paid or made by the Company on the outstanding Common Stock or pursuant to a split or subdivision of the outstanding Common Stock), then such Person shall be deemed to be an “Acquiring Person,” subject to the proviso set forth in the first sentence of this Section 1(a), unless upon the consummation of the acquisition of such additional shares of Common Stock such Person does not beneficially own 15% or more of the shares of Common Stock then outstanding.  The phrase “then outstanding”, when used with reference to a Person's Beneficial Ownership of 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 beneficially own hereunder; and
 
(ii)neither GM nor any of its controlled Affiliates, shall be deemed to have become an Acquiring Person solely as a result of GM or such controlled Affiliates receiving an issuance of, holding or exercising the Warrants, or holding shares of Common Stock in accordance with the terms of the Warrant Agreement.

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(b)“Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as in effect on the date of this Rights Agreement.
(c)A Person shall be deemed the “Beneficial Owner” of, shall be deemed to have “Beneficial Ownership” of and shall be deemed to “beneficially own” any securities:
(i)which such Person or any of such Person's Affiliates or Associates is deemed to beneficially own, directly or indirectly, within the meaning of Rule 13d-3 of the General Rules and Regulations under the Exchange Act as in effect on the date of this Rights Agreement;
(ii)which such Person or any of such Person's Affiliates or Associates, directly or indirectly, (A) 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 (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities), written or otherwise, or upon the exercise of conversion rights, exchange rights, rights (other than the Rights), warrants or options, or otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, (x) 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, (y) securities which such Person (or an Affiliate or Associate of such Person, as applicable) has a right to acquire on the exercise of Rights at any time prior to the time a Person (or an Affiliate or Associate of such Person, as applicable) becomes an Acquiring Person, or (z) securities issuable upon exercise of Rights from and after the time a Person becomes an Acquiring Person if such Rights were acquired by such Person or any of such Person's Affiliates or Associates prior to the Distribution Date or pursuant to Section 3 or Section 22 hereof (the “Original Rights”) or pursuant to Section 11(i) or Section 11(n) with respect to an adjustment to the Original Rights, or (B) has or shares the right to vote or dispose of, including pursuant to any agreement, arrangement or understanding, written or otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security by reason of such agreement, arrangement or understanding if the agreement, arrangement or understanding to vote such security (1) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations promulgated under the Exchange Act and (2) is not also then reportable on Schedule 13D under the Exchange Act (or any comparable or successor report); or

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(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 (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities), written or otherwise, for the purpose of acquiring, holding, voting (except to the extent contemplated by the proviso to this Section 1(c)(ii)(B)) or disposing of such securities of the Company;
 
provided, however, that (x) no Person who is an officer, director, or employee of an Exempt Person shall be deemed, solely by reason of such Person's status or authority as such, to be the “Beneficial Owner” of, to have “Beneficial Ownership” of or to “beneficially own” any securities that are “beneficially owned” (as defined in this Section 1(c)), including, without limitation, in a fiduciary capacity, by an Exempt Person or by any other such officer, director or employee of an Exempt Person; (y) a Person shall not be deemed the Beneficial Owner of, to have “Beneficial Ownership” of or to beneficially own, shares of Common Stock (or securities convertible into, exchangeable into or exercisable for Common Stock) held by such Person in trust accounts, managed accounts and the like, or otherwise held in a fiduciary capacity, that are Beneficially Owned by third Persons who are not Affiliates or Associates of such Person; and (z) nothing in this Section 1(c) shall cause a Person engaged in business as an underwriter of securities or member of a selling group to be the Beneficial Owner of, or to beneficially own, any securities acquired through such Person's participation in good faith in an underwriting syndicate until the expiration of 40 calendar days after the date of such acquisition, or such later date as the Board of Directors of the Company may determine in any specific case.
(d)“Business Day” shall mean any day other than a Saturday, a Sunday, or a day on which banking institutions in the State of New York, or the State in which the principal office of the Rights Agent is located, are authorized or obligated by law or executive order to close.
 
(e)“close of business” on any given date shall mean 5:00 P.M., Eastern time, on such date; provided, however, that if such date is not a Business Day it shall mean 5:00 P.M., Eastern time, on the next succeeding Business Day.
 
(f)“Common Stock” when used with reference to the Company shall mean the common stock, par value $.01, of the Company.  “Common Stock” when used with reference to any Person other than the Company shall mean the capital stock (or, in the case of an unincorporated entity, the equivalent equity interest) with the greatest voting power of such other Person or, if such other Person is a subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned Person.
 
(g)“Exempt Person” shall mean:
 
(i)Richard E. Dauch, members of his immediate family, any trust or other estate in which such person has a substantial beneficial interest and any relative or spouse of such person, or any relative of such spouse, who has the same home as such person; or

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(ii)the Company or any Subsidiary of the Company, in each case including, without limitation, in its fiduciary capacity, or any employee benefit plan of the Company or of any Subsidiary of the Company or any entity or trustee holding Common Stock for or pursuant to the terms of any such plan or for the purpose of funding any such plan or funding other employee benefits for employees of the Company or of any Subsidiary of the Company.
 
(h)“GM” shall mean General Motors Company.
(i)“Nasdaq” shall mean The Nasdaq Stock Market's National Market.
(j)“NYSE” shall mean The New York Stock Exchange.
(k)“Person” shall mean any individual, firm, corporation, partnership, limited liability company, limited liability partnership, trust or other legal entity, and shall include any successor (by merger or otherwise) of such entity or individual.
(l)“Preferred Stock” shall mean the Series A Junior Participating Preferred Stock, par value $.01 per share, of the Company having the rights and preferences set forth in the Form of Certificate of Designations attached to this Rights Agreement as Exhibit A.
(m)“Securities Act” shall mean the Securities Act of 1933, as amended.
(n)“Stock Acquisition Date” shall mean the first date of public announcement (which for purposes of this definition shall include, without limitation, a report filed pursuant to Section 13(d) of the Exchange Act) by the Company or an Acquiring Person that an Acquiring Person has become such or such earlier date as a majority of the Board of Directors of the Company shall become aware of the existence of an Acquiring Person.
(o)“Subsidiary” of any Person shall mean any corporation or other entity of which securities or other ownership interests having ordinary voting power sufficient to elect a majority of the board of directors or other persons performing similar functions are beneficially owned, directly or indirectly, by such Person, and any corporation or other entity that is otherwise controlled by such Person.
(p)“Tax Item” shall mean any amount of net operating loss, net capital loss, general business credit, minimum tax credit and foreign tax credit for United States federal income tax purposes of the Company or any of its Subsidiaries.
(q)“Warrant Agreement” shall mean the Warrant Agreement, dated as of September 16, 2009, between the Company and GM.
(r)“Warrants” shall mean the warrants issued to GM pursuant to the Warrant Agreement.
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
 

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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 (10) days' prior 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 Right Certificates.  (a) Until the close of business on the earlier of (i) the tenth day after the Stock Acquisition Date or (ii) the tenth Business Day (or such later date as may be determined by action of the Board of Directors of the Company prior to such time as any Person becomes an Acquiring Person) after the date of the commencement by any Person (other than an Exempt Person) of, or of the first public announcement of the intention of such Person (other than an Exempt Person) to commence, a tender or exchange offer the consummation of which would result in any Person (other than an Exempt Person) becoming the Beneficial Owner of 15% or more of the shares of Common Stock then outstanding (including, in the case of both clause (i) and (ii), any such date which is after the date of this Rights Agreement and prior to the issuance of the Rights) (the earlier of such dates being herein referred to as the “Distribution Date”), (x) the Rights will be evidenced (subject to the provisions of Section 3(b) hereof) by the certificates for Common Stock registered in the names of the holders thereof, and not by separate Right Certificates (as defined below), and (y) the Rights will be transferable only in connection with the transfer of Common Stock.  As soon as practicable after the Distribution Date, the Company will prepare and execute, the Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if requested, send) by first-class, insured, postage-prepaid mail, to each record holder of Common Stock as of the close of business on the Distribution Date (other than any Acquiring Person or any Associate or Affiliate of an Acquiring Person), at the address of such holder shown on the records of the Company, a Right Certificate, in substantially the form of Exhibit B hereto (a “Right Certificate”), evidencing one Right (subject to adjustment as provided herein) for each share of Common Stock so held.  As of and after the Distribution Date, the Rights will be evidenced solely by such Right Certificates.
 
(b)    As promptly as practicable following the Record Date, the Company will send a copy of a Summary of Rights to Purchase Shares of Preferred Stock, in substantially the form of Exhibit C hereto (the “Summary of Rights”), by first-class, postage-prepaid mail, to each record holder of 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 shares of Common Stock outstanding as of the Record Date, until the Distribution Date, the Rights associated with such shares will be evidenced by the share certificate for such shares of Common Stock registered in the names of the holders thereof together with the Summary of Rights.  Until the Distribution Date (or, if earlier, the Expiration Date), the surrender for transfer of any certificate for Common Stock outstanding on the Record Date, with or without a copy of the Summary of Rights, shall also constitute the transfer of the Rights associated with the Common Stock represented thereby.
 
(c)    Rights shall be issued in respect of all shares of Common Stock issued or disposed of (including, without limitation, upon disposition of Common Stock out of treasury stock or issuance or reissuance of Common Stock out of authorized but unissued shares) after the Record Date but prior to the earlier of the Distribution Date and the Expiration Date, or in certain circumstances provided in Section 22 hereof, after the Distribution Date.  Certificates issued for 
 

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Common Stock (including, without limitation, upon transfer of outstanding Common Stock, disposition of Common Stock out of treasury stock or issuance or reissuance of Common Stock out of authorized but unissued shares) after the Record Date but prior to the earlier of the Distribution Date and the Expiration Date shall have impressed on, printed on, written on or otherwise affixed to them the following legend:
 
This certificate also evidences and entitles the holder hereof to certain rights as set forth in a Rights Agreement between American Axle & Manufacturing Holdings, Inc. and EquiServe Trust Company Inc., dated as of September 15, 2003, as the same may be amended, supplemented or otherwise modified from time to time (the “Rights Agreement”), the terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal executive offices of American Axle & Manufacturing Holdings, Inc.  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.  American Axle & Manufacturing Holdings, Inc. will mail to the holder of this certificate a copy of the Rights Agreement without charge after receipt of a written request therefor.  Under certain circumstances, as set forth in the Rights Agreement, Rights owned by or transferred to any Person who is or becomes an Acquiring Person (as defined in the Rights Agreement) and certain transferees thereof will become null and void and will no longer be transferable.
With respect to such certificates containing the foregoing legend, until the Distribution Date, the Rights associated with the Common Stock represented by such certificates shall be evidenced by such certificates alone, and the surrender for transfer of any such certificate, except as otherwise provided herein, shall also constitute the transfer of the Rights associated with the Common Stock represented thereby.  In the event that the Company purchases or otherwise acquires any Common Stock after the Record Date but prior to the Distribution Date, any Rights associated with such Common Stock shall be deemed cancelled and retired so that the Company shall not be entitled to exercise any Rights associated with the shares of Common Stock which are no longer outstanding.
Notwithstanding this paragraph (c), the omission of a legend shall not affect the enforceability of any part of this Rights Agreement or the rights of any holder of the Rights.
Section 4.    Form of Right Certificates.  The Right Certificates (and the forms of election to purchase shares and of assignment to be printed on the reverse thereof) shall 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 and as are not inconsistent with the provisions of this Rights 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 NYSE or of any other stock exchange or automated quotation system on which the Rights may from time to time be listed, or to conform to usage.  Subject to the provisions of Sections 11 and 22 hereof, the Right Certificates shall entitle the holders thereof to purchase such number of one one-thousandths of a share of Preferred Stock as shall be set forth therein at the Purchase Price (as determined pursuant to Section 7), 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.

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Section 5.    Countersignature and Registration.  (a)  The Right Certificates shall be executed on behalf of the Company by the Chief Executive Officer, the President, any of the Vice Presidents or the Treasurer of the Company, either manually or by facsimile signature, shall have affixed thereto the Company's seal or a facsimile thereof and shall be attested by the Secretary or an Assistant Secretary of the Company, either manually or by facsimile signature.  The Right Certificates shall be countersigned by the Rights Agent, either manually or by facsimile signature, and shall not be valid for any purpose unless countersigned.  In case any officer of the Company who shall have signed any of the Right Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the Company, such Right 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 Right Certificates had not ceased to be such officer of the Company; and any Right Certificate may be signed on behalf of the Company by any Person who, at the actual date of the execution of such Right Certificate, shall be a proper officer of the Company to sign such Right 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, the Rights Agent will keep or cause to be kept, at an office or agency designated for such purpose, books for registration and transfer of the Right Certificates issued hereunder.  Such books shall show the names and addresses of the respective holders of the Right Certificates, the number of Rights evidenced on its face by each of the Right Certificates and the date of each of the Right Certificates.
 
Section 6.    Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates.  (a) Subject to the provisions of this Rights Agreement, at any time after the close of business on the Distribution Date, and prior to the close of business on the Expiration Date, any Right Certificate or Right Certificates may be transferred, split up, combined or exchanged for another Right Certificate or Right Certificates, entitling the registered holder to purchase a like number of one one-thousandths of a share of Preferred Stock (or, following such time, other securities, cash or assets as the case may be) as the Right Certificate or Right Certificates surrendered then entitled such holder to purchase.  Any registered holder desiring to transfer, split up, combine or exchange any Right Certificate or Right Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender the Right Certificate or Right Certificates to be transferred, split up, combined or exchanged at the office or agency of the Rights Agent designated for such purpose.  Thereupon the Rights Agent, subject to the provisions of this Rights Agreement, shall countersign and deliver to the Person entitled thereto a Right Certificate or Right Certificates, as the case may be, as so requested.  The Company may require payment 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 Right Certificates.
 
(b)    Subject to the provisions of this Rights Agreement, at any time after the Distribution Date and prior to the Expiration Date, upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Right Certificate, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, and, at the Company's request, reimbursement to the Company and the Rights 
 

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Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Right Certificate if mutilated, the Company will make and deliver a new Right Certificate of like tenor to the Rights Agent for delivery to the registered holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated.
 
Section 7.    Exercise of Rights, Purchase Price; Expiration Date of Rights.  (a) Except as otherwise provided herein, the Rights shall become exercisable on the Distribution Date, and thereafter the registered holder of any Right Certificate may, subject to Section 11(a)(ii) hereof and except as otherwise provided herein, exercise the Rights evidenced thereby in whole or in part upon surrender of the Right Certificate, with the form of election to purchase on the reverse side thereof duly executed, to the Rights Agent at the office or agency of the Rights Agent designated for such purpose, together with payment of the Purchase Price for each one one-thousandth of a share of Preferred Stock (or other securities, cash or assets, as the case may be) as to which the Rights are exercised, at any time which is both after the Distribution Date and prior to the time (the “Expiration Date”) that is the earliest of (i) the close of business on September 15, 2013 (the “Final Expiration Date”), (ii) the time at which the Rights are redeemed as provided in Section 23 hereof (the “Redemption Date”) or (iii) the time at which such Rights are exchanged as provided in Section 24 hereof.
 
(b)    The purchase price (the “Purchase Price”) shall be initially $120.00 for each one one-thousandth of a share of Preferred Stock purchasable upon the exercise of a Right.  The Purchase Price and the number of one one-thousandths of a share of Preferred Stock or other securities or property to be acquired upon exercise of a Right shall be subject to adjustment from time to time as provided in Sections 11 and 13 hereof and shall be payable in lawful money of the United States of America in accordance with paragraph (c) of this Section 7.
 
(c)    Except as otherwise provided herein, upon receipt of a Right Certificate representing exercisable Rights, with the form of election to purchase duly executed, accompanied by payment of the aggregate Purchase Price for the number of shares of Preferred Stock to be purchased and an amount equal to any applicable transfer tax required to be paid by the holder of such Right Certificate in accordance with Section 6 hereof, in cash or by certified check, cashier's check or money order payable to the order of the Company, the Rights Agent shall thereupon promptly (i) (A) requisition from any transfer agent of the Preferred Stock certificates for the number of shares of Preferred Stock to be purchased (and the Company hereby irrevocably authorizes its transfer agent to comply with all such requests), or (B) requisition from the depositary agent appointed by the Company depositary receipts representing interests in such number of one one-thousandths of a share of Preferred Stock as are to be purchased, in which case certificates for the Preferred Stock represented by such receipts shall be deposited by the transfer agent with the depositary agent (and the Company hereby directs the depositary agent to comply with such request), (ii) when appropriate, requisition from the Company the amount of cash to be paid in lieu of issuance of fractional shares in accordance with Section 14 hereof, (iii) promptly 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 Right Certificate, registered in such name or names as may be designated by such holder and (iv) when appropriate, after receipt, promptly deliver such cash to or upon the order of the registered holder of such Right Certificate.

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(d)     Except as otherwise provided herein, in case the registered holder of any Right Certificate shall exercise less than all the Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent to the exercisable Rights remaining unexercised shall be issued by the Rights Agent to the registered holder of such Right Certificate or to his duly authorized assigns, subject to the provisions of Section 14 hereof.
 
(e)    Notwithstanding anything in this Rights Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake any action with respect to a registered holder of Rights upon the occurrence of any purported transfer or exercise of Rights pursuant to Section 6 hereof or this Section 7 unless such registered holder shall have (i) completed and signed the certificate contained in the form of assignment or election to purchase set forth on the reverse side of the Right Certificate surrendered for such transfer or exercise and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) thereof as the Company shall reasonably request.
 
Section 8.    Cancellation and Destruction of Right Certificates.  All Right Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company or to 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 Right Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Rights Agreement.  The Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Right Certificate purchased or acquired by the Company otherwise than upon the exercise thereof.  The Rights Agent shall deliver all cancelled Right Certificates to the Company, or shall, at the written request of the Company, destroy or cause to be destroyed such cancelled Right Certificates, and in such case shall deliver a certificate of destruction thereof to the Company.
 
Section 9.    Availability of Shares of Preferred 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 or any shares of Preferred Stock held in its treasury, the number of shares of Preferred Stock that 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 time that a Person becomes an Acquiring Person, shares of Common Stock and other securities) issuable upon the exercise of Rights may be listed or admitted to trading on NYSE or listed on any other national securities exchange or quotation system, the Company shall use its best efforts to cause, from and after such time as the Rights become exercisable, all shares reserved for such issuance to be listed or admitted to trading on NYSE or listed on any other exchange or quotation system upon official notice of issuance upon such exercise.
 
(c)    From and after such time as the Rights become exercisable, the Company shall use its best efforts, if then necessary to permit the issuance of shares of Preferred Stock (and following the time that a Person first becomes an Acquiring Person, shares of Common Stock and other securities) upon the exercise of Rights, to register and qualify such shares of Preferred Stock (and following the time that a Person first becomes an Acquiring Person, shares of Common Stock and other securities) under the Securities Act and any applicable state 
 

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securities or “Blue Sky” laws (to the extent exemptions therefrom are not available), cause such registration statement and qualifications to become effective as soon as possible after such filing and keep such registration and qualifications effective until the earlier of (x) the date as of which the Rights are no longer exercisable for such securities and (y) the Expiration Date.  The Company may temporarily suspend, for a period of time not to exceed ninety (90) days, the exercisability of the Rights in order to prepare and file a registration statement under the Securities Act and permit it to become effective.  Upon any such suspension, the Company shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect.  Notwithstanding any provision of this Rights Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction unless the requisite qualification or exemption in such jurisdiction shall have been obtained and until a registration statement under the Securities Act (if required) shall have been declared effective.
 
(d)    The Company covenants and agrees that it will take all such action as may be necessary to ensure that all shares of Preferred Stock (and, following the time that a Person becomes an Acquiring Person, shares of Common Stock and other securities) delivered upon exercise of Rights shall, at the time of delivery of the certificates therefor (subject to payment of the Purchase Price), be duly and validly authorized and issued and fully paid and nonassessable shares.
 
(e)    The Company further covenants and agrees that it will pay when due and payable any and all federal and state transfer taxes and charges which may be payable in respect of the issuance or delivery of the Right Certificates or of any shares of Preferred Stock (or shares of Common Stock or other securities) upon the exercise of Rights.  The Company shall not, however, be required to pay any transfer tax or charge which may be payable in respect of any transfer or delivery of Right Certificates to a Person other than, or the issuance or delivery of certificates or depositary receipts for the Preferred Stock (or shares of Common Stock or other securities) in a name other than that of, the registered holder of the Right Certificate evidencing Rights surrendered for exercise or to issue or deliver any certificates or depositary receipts for Preferred Stock (or shares of Common Stock or other securities) upon the exercise of any Rights until any such tax or charge shall have been paid (any such tax or charge being payable by that holder of such Right Certificate at the time of surrender) or until it has been established to the Company's reasonable satisfaction that no such tax or charge is due.
 
Section 10.    Preferred Stock Record Date.  Each Person in whose name any certificate for Preferred Stock is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of the shares of Preferred Stock represented thereby on, and such certificate shall be dated, the date upon which the Right Certificate evidencing such Rights was duly surrendered and payment of the Purchase Price (and any applicable transfer taxes or charges) was made; provided, however, that if the date of such surrender and payment is a date upon which the Preferred Stock transfer books of the Company are closed, such Person shall be deemed to have become the record holder of such shares on, and such certificate shall be dated, the next succeeding Business Day on which such transfer books are open.  Prior to the exercise of the Rights evidenced thereby, the holder of a Right Certificate shall not be entitled to any rights of a holder of Preferred Stock for which the Rights shall be exercisable, including, 

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without limitation, the right to vote or to receive dividends or other distributions, 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 and Number of Rights.  The Purchase Price, the number of shares of Preferred Stock or other securities or property purchasable upon exercise of each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 11.
 
(a)    (i) In the event the Company shall at any time after the date of this Agreement (A) declare a dividend on the Preferred Stock payable in shares of Preferred Stock, (B) subdivide the outstanding shares of Preferred Stock, (C) combine the outstanding shares of Preferred Stock into a smaller number of shares of Preferred Stock or (D) issue any shares of its capital stock in a reclassification of the shares of 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), the Purchase Price in effect at the time of the record date for such dividend or of the effective date of such subdivision, combination or reclassification, as the case may be, and the number and kind of shares of capital stock issuable on such date, shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled to receive the aggregate number and kind of shares of capital stock 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, the holder would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification; provided, however, that in no event shall the consideration to be paid upon the 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.
 
(ii)  Subject to Section 24 of this Rights Agreement and except as otherwise provided in this Section 11(a)(ii) and Section 11(a)(iii), in the event that any Person becomes an Acquiring Person, each holder of a Right shall thereafter have the right to receive, upon exercise thereof at a price equal to the then-current Purchase Price, in accordance with the terms of this Rights Agreement and in lieu of shares of Preferred Stock, such number of shares of Common Stock (or at the option of the Company, such number of one one-thousandths of a share of Preferred Stock) as shall equal the result obtained by (x) multiplying the then-current Purchase Price by the number of one one-thousandths of a share of Preferred Stock for which a Right is then exercisable and dividing that product by (y) 50% of the then-current per share market price of the Company's Common Stock (determined pursuant to Section 11(d) hereof) on the date of the occurrence of such event; provided, however, that the Purchase Price (as so adjusted) and the number of shares of Common Stock so receivable upon exercise of a Right shall thereafter be subject to further adjustment as appropriate in accordance with Section 11(f) hereof.  Notwithstanding anything in this Rights Agreement to the contrary, however, from and after the time (the “invalidation time”) when any Person first becomes an Acquiring Person, any Rights that are beneficially owned by (x) any Acquiring Person (or any Affiliate or Associate of any Acquiring Person), (y) a transferee of any Acquiring Person (or any such Affiliate or Associate) who becomes a transferee after the invalidation time or (z) a transferee of any Acquiring Person (or any such Affiliate or Associate) who became a transferee prior to or concurrently with the invalidation time pursuant to either (I) a transfer from the Acquiring Person to holders of its equity securities or to any Person with whom it has any continuing agreement, arrangement or understanding, written or otherwise, regarding the transferred Rights or (II) a transfer that the Board of Directors of the Company has determined is part of a plan, arrangement or
 

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understanding, written or otherwise, which has the purpose or effect of avoiding the provisions of this paragraph, and subsequent transferees of such Persons, shall be void without any further action and any holder of such Rights shall thereafter have no rights whatsoever with respect to such Rights under any provision of this Rights Agreement.  The Company shall use all reasonable efforts to ensure that the provisions of this Section 11(a)(ii) are complied with, but shall have no liability to any holder of Right Certificates or other Person as a result of its failure to make any determinations with respect to an Acquiring Person or its Affiliates, Associates or transferees hereunder.  From and after the invalidation time, no Right Certificate shall be issued pursuant to Section 3 or Section 6 hereof that represents Rights that are or have become void pursuant to the provisions of this paragraph, and any Right Certificate delivered to the Rights Agent that represents Rights that are or have become void pursuant to the provisions of this paragraph shall be cancelled.  From and after the occurrence of an event specified in Section 13(a) hereof, any Rights that theretofore have not been exercised pursuant to this Section 11(a)(ii) shall thereafter be exercisable only in accordance with Section 13 and not pursuant to this Section 11(a)(ii).
 
(iii)  The Company may at its option substitute for a share of Common Stock issuable upon the exercise of Rights in accordance with the foregoing subparagraph (ii) such number or fractions of shares of Preferred Stock having an aggregate current market value equal to the current per share market price of a share of Common Stock.  In the event that there shall not be sufficient shares of Common Stock issued but not outstanding or authorized but unissued (and unreserved) to permit the exercise in full of the Rights in accordance with the foregoing subparagraph (ii), the Board of Directors of the Company shall, with respect to such deficiency, to the extent permitted by applicable law and any material agreements then in effect to which the Company is a party (A) determine the excess of (x) the value of the shares of Common Stock issuable upon the exercise of a Right in accordance with the foregoing subparagraph (ii) (the “Current Value”) over (y) the then-current Purchase Price multiplied by the number of one one-thousandths of shares of Preferred Stock for which a Right was exercisable immediately prior to the time that the Acquiring Person became such (such excess, the “Spread”), and (B) with respect to each Right (other than Rights which have become void pursuant to Section 11(a)(ii)), make adequate provision to substitute for the shares of Common Stock issuable in accordance with subparagraph (ii) upon exercise of the Right and payment of the applicable Purchase Price, (1) cash, (2) a reduction in such Purchase Price, (3) shares of Preferred Stock or other equity securities of the Company (including, without limitation, shares or fractions of shares of preferred stock which, by virtue of having dividend, voting and liquidation rights substantially comparable to those of the shares of Common Stock, are deemed in good faith by the Board of Directors of the Company to have substantially the same value as the shares of Common Stock (such shares of preferred stock and shares or fractions of shares of preferred stock are hereinafter referred to as “Common Stock equivalents”)), (4) debt securities of the Company, (5) other assets or (6) any combination of the foregoing, having a value which, when added to the value of the shares of Common Stock actually issued upon exercise of such Right, shall have an aggregate value equal to the Current Value (less the amount of any reduction in such Purchase Price), where such aggregate value has been determined by the Board of Directors of the Company upon the advice of a nationally recognized investment banking firm selected in good faith by the Board of Directors of the Company; provided, however, if the 
 

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Company shall not make adequate provision to deliver value pursuant to clause (B) above within thirty (30) days following the date that the Acquiring Person became such (the “Section 11(a)(ii) Trigger Date”), then the Company shall be obligated to deliver, to the extent permitted by applicable law and any material agreements then in effect to which the Company is a party, upon the surrender for exercise of a Right and without requiring payment of the Purchase Price, shares of Common Stock (to the extent available), and then, if necessary, such number or fractions of shares of Preferred Stock (to the extent available) and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread.  If within the thirty (30) day period referred to above the Board of Directors of the Company shall determine in good faith that it is likely that sufficient additional shares of Common Stock could be authorized for issuance upon exercise in full of the Rights, then, if the Board of Directors of the Company so elects, such thirty (30) day period may be extended to the extent necessary, but not more than ninety (90) days after the Section 11(a)(ii) Trigger Date, in order that the Company may seek stockholder approval for the authorization of such additional shares (such thirty (30) day period, as it may be extended, is hereinafter called the “Substitution Period”).  To the extent that the Company determines that some action need be taken pursuant to the second and/or third sentence of this Section 11(a)(iii), the Company (x) shall provide, subject to Section 11(a)(ii) hereof and the last sentence of this Section 11(a)(iii) hereof, that such action shall apply uniformly to all outstanding Rights and (y) may suspend the exercisability of the Rights until the expiration of the Substitution Period in order to seek any authorization of additional shares and/or to decide the appropriate form of distribution to be made pursuant to such second 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.  For purposes of this Section 11(a)(iii), the value of the shares of Common Stock shall be the current per share market price (as determined pursuant to Section 11(d)(i)) on the Section 11(a)(ii) Trigger Date and the per share or fractional value of any Common Stock equivalent shall be deemed to equal the current per share market price of the Common Stock.  The Board of Directors of the Company may, but shall not be required to, establish procedures to allocate the right to receive shares of Common Stock upon the exercise of the Rights among holders of Rights pursuant to this Section 11(a)(iii).
 
(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 (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Preferred Stock (or shares having similar rights, privileges and preferences as the Preferred Stock (“equivalent preferred shares”)) or securities convertible into Preferred Stock or equivalent preferred shares at a price per share of Preferred Stock or equivalent preferred shares (or having a conversion price per share, if a security convertible into shares of Preferred Stock or equivalent preferred shares) less than the then-current per share market price of the Preferred Stock (determined pursuant to Section 11(d) hereof) 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 and equivalent preferred shares outstanding on such record date plus the number of shares of Preferred Stock and equivalent preferred shares which the aggregate offering price of the total number of such shares so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be offered) would purchase at such current market price, and the 

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denominator of which shall be the number of shares of Preferred Stock and equivalent preferred shares outstanding on such record date plus the number of additional shares of Preferred Stock and/or equivalent preferred shares 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 the 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 in a consideration part or all of which shall be in a form other than cash, the value of such consideration shall be as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent and which shall be binding on the Rights Agent.  Shares of Preferred Stock and equivalent preferred shares owned by or held for the account of the Company shall not be deemed outstanding for the purpose of any such computation.  Such adjustment shall be made successively whenever such a record date is fixed; and in the event that such rights, options 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 the making of a distribution to all holders of the Preferred Stock (including any such distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving corporation) of evidences of indebtedness or assets (other than a regular quarterly cash dividend or a dividend payable in Preferred Stock) or 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 then-current per share market price of the Preferred Stock (determined pursuant to Section 11(d) hereof) on such record date, less the fair market value (as determined in good faith by the Board of Directors of the Company whose determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights Agent) of the portion of such assets or evidences of indebtedness so to be distributed or of such subscription rights or warrants applicable to one share of Preferred Stock, and the denominator of which shall be such current per share market price of the Preferred Stock; provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company to be issued 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 again be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed.
 
(d)    (i)     Except as otherwise provided herein, for the purpose of any computation hereunder, the “current per share market price” of any security (a “Security” for the purpose of this Section 11(d)(i)) on any date shall be deemed to be the average of the daily closing prices per share of such Security for the 30 consecutive Trading Days (as such term is hereinafter defined) immediately prior to such date; provided, however, that in the event that the current per share market price of the Security is determined during a period following the announcement by the issuer of such Security of (A) a dividend or distribution on such Security payable in shares of such Security or securities convertible into such shares, or (B) any subdivision, combination or reclassification of such Security, and prior to the expiration of 30 Trading Days after the ex-dividend date for such dividend or distribution, or the record date 
 

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for such subdivision, combination or reclassification, then, and in each such case, the current per share market price shall be appropriately adjusted to reflect the current market price per share equivalent of such Security.  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 by (w) the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on NYSE or, (x) if the Security is not listed or admitted to trading on the NYSE, as reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the Security is listed or admitted to trading or, if (y) the Security is not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by Nasdaq or such other system then in use, or, (z) if on any such date the Security is not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Security selected by the Board of Directors of the Company.  The term “Trading Day” shall mean a day on which the principal national securities exchange on which the Security is listed or admitted to trading is open for the transaction of business or, if the Security is not listed or admitted to trading on any national securities exchange, a Business Day.
 
(ii)      For the purpose of any computation hereunder, if the Preferred Stock is publicly traded, the “current per share market price” of the Preferred Stock shall be determined in accordance with the method set forth in Section 11(d)(i).  If the Preferred Stock is not publicly traded but the Common Stock is publicly traded, the “current per share market price” of the Preferred Stock shall be conclusively deemed to be the current per share market price of the Common Stock, as determined pursuant to Section 11(d)(i), multiplied by one thousand (appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof).  If neither the Common Stock nor the Preferred Stock is publicly traded, “current per share market price” shall mean the fair value per share as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights Agent.
 
(e)    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 not required to be made by reason of this Section 11(e) 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 one ten-thousandth of a share of Preferred Stock or share of Common Stock or other share or security 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) three years from the date of the transaction which requires such adjustment or (ii) the Expiration Date.
 
(f)    If as a result of an adjustment made pursuant to Section 11(a) hereof, the holder of any Right thereafter exercised shall become entitled to receive any shares of capital stock of the Company other than the Preferred Stock, thereafter the Purchase Price and the number of such other shares so receivable upon exercise of a Right 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 Section 11(a), 11(b), 11(c), 11(e), 11(h), 11(i) 
 

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and 11(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-thousandths 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 Section 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-thousandths of a share of Preferred Stock (calculated to the nearest one ten-thousandth of a share of Preferred Stock) obtained by (i) multiplying (x) the number of one one-thousandths of a share of Preferred Stock purchasable upon the exercise of a Right immediately prior to such 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 pursuant to Sections 11(b) or 11(c) hereof to adjust the number of Rights, in substitution for any adjustment in the number of one one-thousandths of a share of Preferred Stock purchasable upon the exercise of a Right.  Each of the Rights outstanding after such adjustment of the number of Rights shall be exercisable for the number of one one-thousandths 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 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 Right Certificates have been issued, shall be at least 10 days later than the date of the public announcement.  If Right Certificates have been issued, upon each adjustment of the number of Rights pursuant to this Section 11(i), the Company may, as promptly as practicable, cause to be distributed to holders of record of Right Certificates on such record date Right 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 Right Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the Company, new Right Certificates evidencing all the Rights to which such holders shall be entitled as a result of such adjustment.  Right Certificates so to be distributed shall be issued, executed and countersigned in the manner provided for herein and shall be registered in the names of the holders of record of Right Certificates on the record date specified in the public announcement.
 

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(j)    Irrespective of any adjustment or change in the Purchase Price or the number of one one-thousandths of a share of Preferred Stock issuable upon the exercise of the Rights, the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price and the number of one one-thousandths of a share of Preferred Stock which were expressed in the initial Right 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 shares of Preferred Stock or other shares of capital 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 shares of Preferred Stock or other such shares 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 issuing to the holder of any Right exercised after such record date the Preferred Stock, Common Stock or other capital stock or securities of the Company, if any, issuable upon such exercise over and above the Preferred Stock, Common Stock or 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 upon the occurrence of the event requiring such adjustment.
 
(m)    Notwithstanding anything in this Section 11 to the contrary, 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 consolidation or subdivision of the Preferred Stock, issuance (wholly for cash) of any shares of Preferred Stock at less than the current market price, issuance (wholly for cash) of Preferred Stock or securities which by their terms are convertible into or exchangeable for Preferred Stock, dividends on Preferred Stock payable in shares of Preferred Stock or issuance of rights, options or warrants referred to hereinabove in Section 11(b), hereafter made by the Company to holders of its Preferred Stock shall not be taxable to such stockholders.
 
(n)    Notwithstanding anything in this Rights Agreement to the contrary, in the event that at any time after the date of this Rights Agreement and prior to the Distribution Date, the Company shall (i) declare or pay any dividend on the Common Stock payable in Common Stock or (ii) effect a subdivision, combination or consolidation of the Common Stock (by reclassification or otherwise than by payment of a dividend payable in Common Stock) into a greater or lesser number of shares of Common Stock, then in any such case, the number of Rights associated with each share of Common Stock then outstanding, or issued or delivered thereafter, shall be proportionately adjusted so that the number of Rights thereafter associated with each share of Common Stock following any such event shall equal the result obtained by multiplying the number of Rights associated with each share of Common Stock immediately prior to such event by a fraction the numerator of which shall be the total number of shares of Common Stock outstanding immediately prior to the occurrence of the event and the 
 

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denominator of which shall be the total number of shares of Common Stock outstanding immediately following the occurrence of such event.
 
(o)    The Company agrees that, after the earlier of the Distribution Date or the Stock Acquisition Date, it will not, except as permitted by Sections 23, 24 or 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 eliminate the benefits intended to be afforded by the Rights.
 
Section 12.    Certificate of Adjusted Purchase Price or Number of Shares.  Whenever an adjustment is made as provided in Section 11 or 13 hereof, the Company shall promptly (a) prepare a certificate setting forth such adjustment, and a brief statement of the facts accounting for such adjustment, (b) file with the Rights Agent and with each transfer agent for the Common Stock or the Preferred Stock a copy of such certificate and (c) mail a brief summary thereof to each holder of a Right Certificate in accordance with Section 25 hereof (if so required under Section 25 hereof).  The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment therein contained and shall not be deemed to have knowledge of any such adjustment unless and until it shall have received such certificate.
 
Section 13.    Consolidation, Merger or Sale or Transfer of Assets or Earnings Power.  (a) In the event, directly or indirectly, at any time after any Person has become an Acquiring Person, (i) the Company shall merge with and into any other Person, (ii) any Person shall consolidate with the Company, or any Person shall merge with and into the Company and the Company shall be the continuing or surviving corporation of such merger and, in connection with such merger, all or part of the Common Stock shall be changed into or exchanged for stock or other securities of any other Person (or of the Company) or cash or any other property, or (iii) 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 to 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 of its wholly-owned Subsidiaries), then, and in each such case, proper provision shall be made so that:
 
(A)each holder of record of a Right (other than Rights which have become void pursuant to Section 11(a)(ii)) shall thereafter have the right to receive, upon the exercise thereof at a price equal to the then-current Purchase Price multiplied by the number of one one-thousandths of a share of Preferred Stock for which a Right was exercisable (whether or not such Right was then exercisable) immediately prior to the time that any Person first became an Acquiring Person (each as subsequently adjusted thereafter pursuant to Section 11(a)(i), 11(b), 11(c), 11(h), 11(i) and 11(m)), in accordance with the terms of this Rights Agreement and in lieu of Preferred Stock, such number of validly issued, fully paid and non-assessable and freely tradeable shares of Common Stock of the Principal Party (as defined below) 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-thousandths of a share of Preferred Stock for which a Right was exercisable immediately prior to the time that any Person first became an 
 

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Acquiring Person (as subsequently adjusted thereafter pursuant to Section 11(a)(i), 11(b), 11(c), 11(h), 11(i) and 11(m)) and (2) dividing that product by 50% of the then-current per share market price of the Common Stock of such Principal Party (determined pursuant to Section 11(d)(i) hereof) on the date of consummation of such consolidation, merger, sale or transfer; provided that the Purchase Price and the number of shares of Common Stock of such Principal Party issuable upon exercise of each Right shall be further adjusted as provided in Section 11(f) of this Rights Agreement to reflect any events occurring in respect of such Principal Party after the date of such consolidation, merger, sale or transfer;
 
(B)such Principal Party shall thereafter be liable for, and shall assume, by virtue of such consolidation, merger, sale or transfer, all the obligations and duties of the Company pursuant to this Rights Agreement;
 
(C)the term “Company” shall thereafter be deemed to refer to such Principal Party; and
 
(D)such Principal Party shall take such steps (including, but not limited to, the reservation of a sufficient number of its shares of its Common Stock) in connection with such 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 the shares of its Common Stock thereafter deliverable upon the exercise of the Rights; provided that, upon the subsequent occurrence of any consolidation, merger, sale or transfer of assets or other extraordinary transaction in respect of such Principal Party, each holder of a Right shall thereupon be entitled to receive, upon exercise of a Right and payment of the Purchase Price as provided in this Section 13(a), such cash, shares, rights, warrants and other property which such holder would have been entitled to receive had such holder, at the time of such transaction, owned the Common Stock of the Principal Party receivable upon the exercise of a Right pursuant to this Section 13(a), and such Principal Party shall take such steps (including, but not limited to, reservation of shares of stock) as may be necessary to permit the subsequent exercise of the Rights in accordance with the terms hereof for such cash, shares, rights, warrants and other property.
 
(b)    “Principal Party” shall mean:
 
(i)in the case of any transaction described in (i) or (ii) of the first sentence of Section 13(a) hereof:  (A) the Person that is the issuer of the securities into which the shares of Common Stock are converted in such merger or consolidation, or, if there is more than one such issuer, the issuer of the shares of Common Stock of which have the greatest aggregate market value of shares outstanding, or (B) if no securities are so issued, (x) the Person that is the other party to the merger, if such Person survives said merger, or, if there is more than one such Person, the Person the shares of Common Stock of which have the greatest aggregate market value of shares outstanding or (y) if the Person that is the other party to the merger does not survive the merger, the Person that 

20

 

 
does survive the merger (including the Company if it survives) or (z) the Person resulting from the consolidation; and
 
(ii)in the case of any transaction described in (iii) of the first sentence in Section 13(a) hereof, the Person that is the party receiving the greatest portion of the assets or earning power transferred pursuant to such transaction or transactions, or, if each Person that is a party to such transaction or transactions receives the same portion of the assets or earning power so transferred or if the Person receiving the greatest portion of the assets or earning power cannot be determined, whichever of such Persons is the issuer of Common Stock having the greatest aggregate market value of shares outstanding;
 
provided, however, that in any such case described in the foregoing clause (b)(i) or (b)(ii), if the Common Stock of such Person is not at such time or has not been continuously over the preceding 12-month period registered under Section 12 of the Exchange Act, then (1) if such Person is a direct or indirect Subsidiary of another Person the Common Stock of which is and has been so registered, the term “Principal Party” shall refer to such other Person, or (2) if such Person is a Subsidiary, directly or indirectly, of more than one Person, and the Common Stocks of all of such persons have been so registered, the term “Principal Party” shall refer to whichever of such Persons is the issuer of Common Stock having the greatest aggregate market value of shares outstanding, or (3) if such Person is owned, directly or indirectly, by a joint venture formed by two or more Persons that are not owned, directly or indirectly, by the same Person, the rules set forth in clauses (1) and (2) above shall apply to each of the owners having an interest in the venture as if the Person owned by the joint venture was a Subsidiary of both or all of such joint venturers, and the Principal Party in each such case shall bear the obligations set forth in this Section 13 in the same ratio as its interest in such Person bears to the total of such interests.
(c)    The Company shall not consummate any consolidation, merger, sale or transfer referred to in Section 13(a) hereof unless prior thereto the Company and the Principal Party involved therein shall have executed and delivered to the Rights Agent an agreement confirming that the requirements of Sections 13(a) and (b) hereof shall promptly be performed in accordance with their terms and that such consolidation, merger, sale or transfer of assets shall not result in a default by the Principal Party under this Rights Agreement as the same shall have been assumed by the Principal Party pursuant to Sections 13(a) and (b) hereof and providing that, as soon as practicable after executing such agreement pursuant to this Section 13, the Principal Party will:
 
(i)      prepare and file a registration statement under the Securities Act, if necessary, with respect to the Rights and the securities purchasable upon exercise of the Rights on an appropriate form, use its best efforts to cause such registration statement to become effective as soon as practicable after such filing and use its best efforts to cause such registration statement to remain effective (with a prospectus at all times meeting the requirements of the Securities Act) until the Expiration Date, and similarly comply with applicable state securities laws;
 
(ii)    use its best efforts, if the Common Stock of the Principal Party shall be listed or admitted to trading on NYSE or on another national securities exchange, 

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to list or admit to trading (or continue the listing of) the Rights and the securities purchasable upon exercise of the Rights on NYSE or such securities exchange, or, if the Common Stock of the Principal Party shall not be listed or admitted to trading on NYSE or a national securities exchange, to cause the Rights and the securities receivable upon exercise of the Rights to be reported by such other system then in use;
 
(iii)    deliver to holders of the Rights historical financial statements for the Principal Party which comply in all respects with the requirements for registration on Form 10 (or any successor form) under the Exchange Act; and
 
(iv)    obtain waivers of any rights of first refusal or preemptive rights in respect of the Common Stock of the Principal Party subject to purchase upon exercise of outstanding Rights.
 
(d)    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 Common Stock or 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.
 
(e)    The Company covenants and agrees that it shall not, at any time after a Person first becomes an Acquiring Person enter into any transaction of the type contemplated by Sections 13(a)(i)-(iii) hereof if (x) at the time of or immediately after such consolidation, merger, sale, transfer or other transaction 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, sale, transfer or other transaction, the stockholders of the Person who constitutes, or would constitute, the Principal Party for purposes of Section 13(b) hereof shall have received a distribution of Rights previously owned by such Person or any of its Affiliates or Associates or (z) the form or nature of organization of the Principal Party would preclude or limit the exercisability of the Rights.
 
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 in accordance with Section 11(n) hereof) or to distribute Right Certificates which evidence fractional Rights.  
 

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In lieu of such fractional Rights, there shall be paid to the registered holders of the Right 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 the 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 for any day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported by (w) the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on NYSE or, (x) if the Rights are not listed or admitted to trading on NYSE, 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, (y) if the Rights are not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by Nasdaq or such other system then in use or, (z) if on any such date the Rights are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Rights selected by the Board of Directors of the Company.  If on any such date no such market maker is making a market in the Rights, the fair value of the Rights on such date as determined in good faith by the Board of Directors of the Company 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).  Interests in fractions of Preferred Stock in integral multiples of one one-thousandth of a share of Preferred Stock may, at the election of the Company, be evidenced by depositary receipts, pursuant to an appropriate agreement between the Company and a depositary selected by it; provided, that such agreement shall provide that the holders of such depositary receipts shall have all the rights, privileges and preferences to which they are entitled as beneficial owners of the Preferred Stock represented by such depositary receipts.  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 shall pay to the registered holders of Right Certificates at the time such Rights are exercised for shares of Preferred Stock as herein provided an amount in cash equal to the same fraction of the current market value of one share of Preferred Stock.  For the purposes of this Section 14(b), the current market value of a share of Preferred Stock shall be 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)    The Company shall not be required to issue fractions of shares of Common Stock or to distribute certificates which evidence fractional shares of Common Stock upon the exercise or exchange of Rights.  In lieu of such fractional shares of Common Stock, the Company shall pay to the registered holders of the Right Certificates at the time such Rights are exercised or exchanged for shares of Common Stock as herein provided an amount in cash equal to the same fraction of the current market value of a whole share of Common Stock (as 

23

 

 
determined in accordance with Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of such exercise or exchange.
 
(d)    The holder of a Right by the acceptance of the Right expressly waives the right to receive any fractional Rights or any fractional shares upon exercise or exchange of a Right (except as provided above).
 
Section 15.    Rights of Action.  All rights of action in respect of this Rights Agreement, excepting the rights of action given to the Rights Agent under Section 18 hereof, are vested in the respective registered holders of the Right Certificates (and, prior to the Distribution Date, the registered holders of the Common Stock); and any registered holder of any Right Certificate (or, prior to the Distribution Date, of the Common Stock), without the consent of the Rights Agent or of the holder of any other Right Certificate (or, prior to the Distribution Date, of the Common Stock), on such holder's own behalf and for such holder's own benefit, may enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, such holder's right to exercise the Rights evidenced by such Right Certificate (or, prior to the Distribution Date, such Common Stock) in the manner provided in such Right Certificate and in this Rights 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 Rights Agreement and will be entitled to specific performance of the obligations under, and injunctive relief against actual or threatened violations of the obligations of any Person subject to, this Rights Agreement.
 
Section 16.    Agreement of Right 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:
 
(i)    prior to the Distribution Date, the Rights will be transferable only in connection with the transfer of the Common Stock;
        
(ii)    after the Distribution Date, the Right Certificates are transferable only on the registry books of the Rights Agent if surrendered at the office or agency of the Rights Agent designated for such purpose, duly endorsed or accompanied by a proper instrument of transfer; and
 
(iii)    the Company and the Rights Agent may deem and treat the Person in whose name the Right Certificate (or, prior to the Distribution Date, the Common Stock) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the Right Certificates or the 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(e) hereof, shall be affected by any notice to the contrary.
 
Section 17.    Right Certificate Holder Not Deemed a Stockholder.  No holder, as such, of any Right Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the holder of the Preferred Stock or any other securities of the Company which may at 
 

24

 

 
any time be issuable on the exercise or exchange of the Rights represented thereby, nor shall anything contained herein or in any Right Certificate be construed to confer upon the holder of any Right 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 Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Rights evidenced by such Right Certificate shall have been exercised or exchanged in accordance with the provisions hereof.
 
Section 18.    Concerning the Rights Agent.  (a) The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the administration and execution of this Rights Agreement and the exercise and performance of its duties hereunder.  The Company also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability or expense, incurred without gross negligence, bad faith or intentional misconduct on the part of the Rights Agent, for anything done or omitted by the Rights Agent in connection with the acceptance and administration of this Rights Agreement, including the costs and expenses of defending against any claim of liability arising therefrom, directly or indirectly.
 
(b)    The Rights Agent shall be protected and shall incur no liability for, or in respect of any action taken, suffered or omitted by it in connection with, its administration of this Rights Agreement in reliance upon any Right Certificate or certificate for the Preferred Stock or Common Stock or for other securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or other paper or document reasonably believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper Person or Persons, or otherwise upon the advice of counsel as set forth in Section 20 hereof.
 
Section 19.    Merger or Consolidation or Change of Name of Rights Agent.  (a) Any corporation into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any corporation resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any corporation succeeding to the stock transfer or corporate trust powers of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Rights Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto; provided, that such corporation would be eligible for appointment as a successor Rights Agent under the provisions of Section 21 hereof.  In case at the time such successor Rights Agent shall succeed to the agency created by this Rights Agreement, any of the Right Certificates shall have been countersigned but not delivered, such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Right Certificates so countersigned; and in case at that time any of the Right Certificates shall not have been countersigned, any successor Rights Agent may countersign such Right Certificates either in the name of the predecessor Rights Agent or in the name of such successor Rights Agent; and in all such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Rights Agreement.
 

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(b)    In case at any time the name of the Rights Agent shall be changed and at such time any of the Right Certificates shall have been countersigned but not delivered the Rights Agent may adopt the countersignature under its prior name and deliver Right Certificates so countersigned; and in case at that time any of the Right Certificates shall not have been countersigned, the Rights Agent may countersign such Right Certificates either in its prior name or in its changed name and in all such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Rights Agreement.
 
Section 20.    Duties of Rights Agent.  The Rights Agent undertakes the duties and obligations imposed by this Rights Agreement upon the following terms and conditions, by all of which the Company and the holders of Right Certificates, by their acceptance thereof, shall be bound:
 
(a)    The Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the opinion of such counsel shall be full and complete authorization and protection to the Rights Agent as to any action taken or omitted by it in good faith and in accordance with such opinion.
 
(b)    Whenever in the performance of its duties under this Rights Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering 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 any one of the Chief Executive Officer, President, any Vice President, the Treasurer or the Secretary of the Company (each, an “Authorized Officer”) and delivered to the Rights Agent; and such certificate shall be full authorization to the Rights Agent for any action taken or suffered in good faith by it under the provisions of this Rights Agreement in reliance upon such certificate.
 
(c)    The Rights Agent shall be liable hereunder to the Company and any other Person only for its own gross negligence, bad faith or intentional misconduct.
 
(d)    The Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Rights Agreement or in the Right Certificates (except its countersignature thereof) or be required to verify the same, but all such statements and recitals are and shall be deemed to have been made by the Company only.
 
(e)    The Rights Agent shall not be under any responsibility in respect of the validity of this Rights 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 Right Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained in this Rights Agreement or in any Right Certificate; nor shall it be responsible for any change in the exercisability of the Rights (including the Rights becoming void pursuant to Section 11(a)(ii) hereof) or any adjustment in the terms of the Rights (including the manner, method or amount thereof) provided for in Sections 3, 11, 13, 23 and 24, or the ascertaining of the existence 
 

26

 

 
of facts that would require any such change or adjustment (except with respect to the exercise of Rights evidenced by Right Certificates after receipt of a certificate furnished pursuant to Section 12, describing such change or 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 Preferred Stock or other securities to be issued pursuant to this Rights Agreement or any Right Certificate or as to whether any shares of Preferred Stock or other securities will, when issued, be validly authorized and issued, fully paid and nonassessable.
 
(f)    The Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Rights Agreement.
 
(g)    The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from any person reasonably believed by the Rights Agent to be one of the Authorized Officers, and to apply to such Authorized Officers for advice or instructions in connection with its duties, and it shall not be liable for any action taken or suffered by it in good faith in accordance with instructions of any such Authorized Officer or for any delay in acting while waiting for those 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 Rights 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 any such application on or after the date specified in such application (which date shall not be less than five Business Days after the date any Authorized Officer of the Company actually receives such application, unless any such Authorized Officer shall have consented in writing to an earlier date) unless, prior to taking any such action (or the effective date in the case of an omission), the Rights Agent shall have received written instructions in response to such application specifying the action to be taken or omitted.
 
(h)    The Rights Agent and any stockholder, director, officer or employee of the Rights Agent may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it were not Rights Agent under this Rights Agreement.  Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other legal entity.
 
(i)    The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorneys or agents, and the Rights Agent 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
 

27

 

 
Company resulting from any such act, default, neglect or misconduct, provided reasonable care was exercised in the selection and continued employment thereof.
 
(j)    If, with respect to any Right Certificate surrendered to the Rights Agent for exercise or transfer, the certificate contained in the form of assignment or the form of election to purchase set forth on the reverse thereof, as the case may be, has not been completed to certify the holder is not an Acquiring Person (or an Affiliate or Associate thereof) or a transferee thereof, the Rights Agent shall not take any further action with respect to such requested exercise or transfer without first consulting with the Company.
 
Section 21.    Change of Rights Agent.  The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this Rights Agreement upon 30 days' notice in writing mailed to the Company and, in the event that the Rights Agent is not also the transfer agent for the Company, to each transfer agent of the Common Stock or Preferred Stock by registered or certified mail.  In the event the transfer agency relationship in effect between the Company and the Rights Agent terminates, the Rights Agent will be deemed to resign automatically on the effective date of such termination; and any required notice will be sent to the Company.  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 Common Stock or Preferred Stock by registered or certified mail, and, following the Distribution Date, to the holders of the Right Certificates by first-class mail.  If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor to the Rights Agent.  If the Company shall fail to make such appointment within a period of 30 days after giving notice of such removal or after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a Right Certificate (who shall, with such notice, submit his Right Certificate for inspection by the Company), then the registered holder of any Right 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) a person organized and doing business under the laws of the United States or any State thereof, which is authorized under such laws to exercise corporate trust or stock transfer powers and is subject to supervision or examination by federal or state authority and which has at the time of its appointment as Rights Agent a combined capital and surplus of at least $50 million 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 Common Stock or Preferred Stock, and, following the Distribution Date, mail a notice thereof in writing to the registered holders of the Right 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.

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Section 22.    Issuance of New Right Certificates.  Notwithstanding any of the provisions of this Rights Agreement or of the Rights to the contrary, the Company may, at its option, issue new Right Certificates evidencing Rights in such forms as may be approved by its Board of Directors of the Company 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 Right Certificates made in accordance with the provisions of this Rights Agreement.  In addition, in connection with the issuance or sale of Common Stock following the Distribution Date and prior to the Expiration Date, the Company may with respect to shares of Common Stock so issued or sold pursuant to (i) the exercise of stock options, (ii) under any employee plan or arrangement, (iii) 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 Right Certificates representing the appropriate number of Rights in connection with such issuance or sale.
 
Section 23.    Redemption and Termination.  (a) The Board of Directors of the Company may, at any time prior to such time as any Person first becomes an Acquiring Person, redeem all but not less than all the then outstanding Rights at a redemption price of $.01 per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (the “Redemption Price”).  The redemption of the Rights may be made effective at such time, on such basis and with such conditions as the Board of Directors of the Company in its sole discretion may establish.  The Company may, at its option, pay the Redemption Price in cash, shares of Common Stock (based on the current market price of the Common Stock at the time of redemption as determined pursuant to Section 11(d)(i) hereof) or any other form of consideration deemed appropriate by the Board of Directors of the Company.
 
(b)    Immediately upon the action of the Board of Directors of the Company ordering the redemption of the Rights pursuant to paragraph (a) of this Section 23 (or at such later time as the Board of Directors of the Company may establish for the effectiveness of such redemption), 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.  The Company shall promptly give public notice of any such redemption; provided, however, that the failure to give, or any defect in, any such notice shall not affect the validity of such redemption.  
 
(c)    Within 10 days after such action of the Board of Directors of the Company ordering the redemption of the Rights (or such later time as the Board of Directors of the Company may establish for the effectiveness of such redemption), the Company shall mail a notice of redemption to all the holders of the then-outstanding Rights at their last addresses as they appear upon the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the Common Stock.  Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice.  Each such notice of redemption shall state the method by which the payment of the Redemption Price will be made.
 
(d)    Neither the Company nor any of its Affiliates or Associates may redeem, acquire or purchase for value any Rights at any time in any manner other than that specifically 

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set forth in this Section 23 or Section 24 hereof and other than in connection with the purchase of Common Stock prior to the Distribution Date.
 
Section 24.    Exchange.  (a) The Board of Directors of the Company may, at its option, at any time after any Person first becomes an Acquiring Person, exchange all or part of the then-outstanding and exercisable Rights (which shall not include Rights that have not become effective or that have become void pursuant to the provisions of Section 11(a)(ii) hereof) for shares of Common Stock at an exchange ratio of one share of Common Stock per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (such amount per Right being hereinafter referred to as the “Exchange Ratio”).  Notwithstanding the foregoing, the Board of Directors of the Company shall not be empowered to effect such exchange at any time after an Acquiring Person becomes the Beneficial Owner of shares of Common Stock aggregating 50% or more of the shares of Common Stock then outstanding.  From and after the occurrence of an event specified in Section 13(a) hereof, any Rights that theretofore have not been exchanged pursuant to this Section 24(a) shall thereafter be exercisable only in accordance with Section 13 and may not be exchanged pursuant to this Section 24(a).  The exchange of the Rights by the Board of Directors of the Company may be made effective at such time, on such basis and with such conditions as the Board of Directors of the Company in its sole discretion may establish.
 
(b)    Immediately upon the effectiveness of the action of the Board of Directors of the Company ordering the exchange of any Rights pursuant to paragraph (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 a holder of such Rights shall be to receive that number of shares of 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 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 shall promptly mail a notice of any such exchange to all of the holders of the Rights so exchanged 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 shares of 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 11(a)(ii) hereof) held by each holder of Rights.
 
(c)    The Company may at its option substitute and, in the event that there shall not be sufficient shares of Common Stock issued but not outstanding or authorized but unissued (and unreserved) to permit an exchange of Rights as contemplated in accordance with this Section 24, the Company shall substitute to the extent of such insufficiency, for each share of Common Stock that would otherwise be issuable upon exchange of a Right, a number of shares of Preferred Stock or fraction thereof (or equivalent preferred shares as such term is defined in Section 11(b)) such that the current per share market price (determined pursuant to Section 11(d) hereof) of one share of Preferred Stock (or equivalent preferred share) multiplied by such number or fraction is equal to the current per share market price of one share of Common Stock (determined pursuant to Section 11(d) hereof) as of the date of such exchange.
 

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Section 25.    Notice of Certain Events.  (a) In case the Company shall at any time after the earlier of the Distribution Date or the Stock Acquisition Date propose (i) to pay any dividend payable in stock of any class to the holders of its Preferred Stock or to make any other distribution to the holders of its Preferred Stock (other than a regular quarterly cash dividend), (ii) to offer to the holders of its 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 or combination of outstanding Preferred Stock), (iv) to effect the liquidation, dissolution or winding up of the Company, or (v) to declare or pay any dividend on the Common Stock payable in Common Stock or to effect a subdivision, combination or consolidation of the Common Stock (by reclassification or otherwise than by payment of dividends in Common Stock), then, in each such case, the Company shall give to each holder of a Right 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, or distribution or offering of rights or warrants, or the date on which such liquidation, dissolution, reclassification, subdivision, combination, consolidation or winding up is to take place and the date of participation therein by the holders of the Common Stock and/or 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 10 days prior to the record date for determining holders of the Preferred Stock for purposes of such action, and in the case of any such other action, at least 10 days prior to the date of the taking of such proposed action or the date of participation therein by the holders of the Common Stock and/or Preferred Stock, whichever shall be the earlier.
 
(b)    In case any event described in Section 11(a)(ii) or Section 13 shall occur then the Company shall as soon as practicable thereafter give to each holder of a Right Certificate (or if occurring prior to the Distribution Date, the holders of the Common Stock) in accordance with Section 26 hereof, a notice of the occurrence of such event, which notice shall describe such event and the consequences of such event to holders of Rights under Section 11(a)(ii) and Section 13 hereof.
 
Section 26.    Notices.  Notices or demands authorized by this Rights Agreement to be given or made by the Rights Agent or by the holder of any Right Certificate to or on the Company shall be sufficiently given or made if sent by overnight delivery service or first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows:
 
American Axle & Manufacturing Holdings, Inc.
One Dauch Drive
Detroit, Michigan 48211
Attn:  General Counsel
 
Subject to the provisions of Section 21 hereof, any notice or demand authorized by this Rights Agreement to be given or made by the Company or by the holder of any Right Certificate to or on the Rights Agent shall be sufficiently given or made if sent by overnight delivery service or first-class mail, postage prepaid, addressed (until another address is filed in writing with the Company) as follows:

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Computershare Trust Company, N.A.
250 Royall Street
Canton, MA 02021
Attn:  Client Services
 
Notices or demands authorized by this Rights Agreement to be given or made by the Company or the Rights Agent to the holder of any Right Certificate shall be sufficiently given or made if sent by overnight delivery service or first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books of the Company.
Section 27.    Supplements and Amendments.  Except as otherwise provided in 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 Rights 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 otherwise provided in this Section 27, the Company may, and the Rights Agent shall, if the Company so directs, supplement or amend this Rights Agreement without the approval of any holders of Right Certificates in order to (i) cure any ambiguity, (ii) correct or supplement any provision contained herein which may be defective or inconsistent with any other provisions herein, (iii) shorten or lengthen any time period hereunder, or (iv) change or supplement the provisions hereunder in any manner which the Company may deem necessary or desirable; provided, however, that no such supplement or amendment shall adversely affect the interests of the holders of Right Certificates as such (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person), and no such amendment may cause the Rights again to become redeemable or cause this Rights Agreement again to become amendable other than in accordance with this sentence.  Notwithstanding anything contained in this Rights Agreement to the contrary, no supplement or amendment shall be made which decreases the Redemption Price.  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, the Rights Agent shall promptly execute such supplement or amendment, with the understanding that time is of the essence.
 
Section 28.    Successors.  All the covenants and provisions of this Rights 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.    Benefits of this Rights Agreement.  Nothing in this Rights Agreement shall be construed to give to any Person other than the Company, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Stock) any legal or equitable right, remedy or claim under this Rights Agreement; but this Rights Agreement shall be for the sole and exclusive benefit of the Company, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Stock).
 
Section 30.    Determinations and Actions by the Board of Directors of the Company.  The Board of Directors of the Company shall have the exclusive power and authority to administer this Rights Agreement and to exercise the rights and powers specifically granted to the Board of Directors of the Company or to the Company, or as may be necessary or advisable 

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in the administration of this Rights Agreement, including, without limitation, the right and power to (i) interpret the provisions of this Rights Agreement and (ii) make all determinations deemed necessary or advisable for the administration of this Rights Agreement (including, without limitation, a determination to redeem or exchange or not redeem or exchange the Rights or to amend this Rights Agreement).  All such actions, calculations, interpretations and determinations (including, for purposes of clause (y) below, all omissions with respect to the foregoing) that are done or made by the Board of Directors of the Company in good faith, shall (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights, as such, and all other parties, and (y) not subject the Board of Directors of the Company to any liability to the holders of the Rights.
 
Section 31.    Severability.  If any term, provision, covenant or restriction of this Rights Agreement or applicable to this Rights 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 Rights Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.
 
Section 32.    Governing Law.  This Rights Agreement and each Right 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 laws of such State applicable to contracts to be made and performed entirely within such State.
 
Section 33.    Counterparts.  This Rights 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.  A signature to this Rights Agreement transmitted electronically shall have the same authority, effect and enforceability as an original signature.
 
Section 34.    Descriptive Headings.  Descriptive headings of the several Sections of this Rights Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof.
 
Section 35.    Force Majeure.  Notwithstanding anything to the contrary contained herein, Rights Agent shall not be liable for any delays or failures in performance resulting from acts beyond its reasonable control including, without limitation, acts of God, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer facilities, or loss of data due to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war, or civil unrest.
 
 
 
 

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IN WITNESS WHEREOF, the parties hereto have caused this Rights Agreement to be duly executed and attested, all as of the day and year first above written.
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
Attest: /s/ Laura L. Douglas       By: /s/ Michael K. Simonte    
Name: Michael K. Simonte
Title: Executive Vice President - Finance & Chief Financial Officer
 
Computershare Trust Company, N.A.
Attest: /s/ Colleen Shea Keating      By: /s/ Dennis V. Moccia    
Name: Dennis V. Moccia
Title: Manager, Contract Administration
 
 
 

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EXHIBIT A
 
FORM
OF
CERTIFICATE OF DESIGNATIONS
OF
SERIES A JUNIOR PARTICIPATING PREFERRED STOCK
OF
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
(Pursuant to Section 151 of the
General Corporation Law of the State of Delaware)
 
American Axle & Manufacturing Holdings, Inc., a corporation organized and existing under the General Corporation Law of the State of Delaware (the “Company”), hereby certifies that the following resolution was duly adopted by the Board of Directors of the Company as required by Section 151 of the General Corporation Law of the State of Delaware on September 15, 2003:
RESOLVED, that pursuant to the authority vested in the Board of Directors of the Company (hereinafter being referred to as the “Board of Directors” or the “Board”) in accordance with the provisions of the Company's Amended and Restated Certificate of Incorporation (hereinafter being referred to as the “Certificate of Incorporation”), the Board of Directors hereby creates a series of Preferred Stock, par value $.01 per share, of the Company, to be designated the “Series A Junior Participating Preferred Stock” and hereby adopts the resolution establishing the designations, number of shares, preferences, voting powers and other rights and the restrictions and limitations thereof, of the shares of such series as set forth below:
Section 1.    Designation and Amount.  The shares of such series shall be designated as “Series A Junior Participating Preferred Stock” (the “Series A Preferred Stock”) and the number of shares constituting the Series A Preferred Stock shall be 100,000.  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 A Preferred Stock to a number 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 Company convertible into Series A Preferred Stock.
 
Section 2.    Dividends and Distributions.
 
(A)    Subject to the rights of the holders of any shares of any series of Preferred Stock of the Company (the “Preferred Stock”) (or any similar stock) ranking prior and superior to the Series A Preferred Stock with respect to dividends, the holders of shares of Series A 

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Preferred Stock, in preference to the holders of Common Stock, par value $.01 per share, of the Company (the “Common Stock”) and of any other stock of the Company ranking junior to the Series A 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 last day of January, April, July, and October in each year (each such date being referred to herein as a “Dividend Payment Date”), commencing on the first Dividend Payment Date after the first issuance of a share or fraction of a share of Series A Preferred Stock (the “Issue Date”), in an amount per share (rounded to the nearest cent) equal to the greater of (a) $1 or (b) subject to the provision for adjustment hereinafter set forth, 1,000 times the aggregate per share amount of all cash dividends, and 1,000 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 Common Stock, declared on the Common Stock since the immediately preceding Dividend Payment Date or, with respect to the first Dividend Payment Date, since the first issuance of any share or fraction of a share of Series A Preferred Stock.  In the event the Company shall at any time after the Issue Date declare and pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the amount to which holders of shares of Series A 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 Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.
 
(B)    The Company shall declare a dividend or distribution on the Series A Preferred Stock as provided in paragraph (A) of this Section immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock); provided that, in the event no dividend or distribution shall have been declared on the Common Stock during the period between any Dividend Payment Date and the next subsequent Dividend Payment Date, a dividend of $1 per share on the Series A Preferred Stock shall nevertheless be payable, when, as and if declared, on such subsequent Dividend Payment Date.
 
(C)    Dividends shall begin to accrue and be cumulative, whether or not earned or declared, on outstanding shares of Series A Preferred Stock from the Dividend Payment Date next preceding the date of issue of such shares, unless the date of issue of such shares is prior to the record date for the first 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 Dividend Payment Date or is a date after the record date for the determination of holders of shares of Series A Preferred Stock entitled to receive a quarterly dividend and before such Dividend Payment Date, in either of which events such dividends shall begin to accrue and be cumulative from such Dividend Payment Date.  Accrued but unpaid dividends shall not bear interest.  Dividends paid on the shares of Series A 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 shares of Series A Preferred Stock entitled to 

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receive payment of a dividend or distribution declared thereon, which record date shall be not more than 60 days prior to the date fixed for the payment thereof.
 
Section 3.    Voting Rights.  The holders of shares of Series A Preferred Stock shall have the following voting rights:
 
(A)    Subject to the provision for adjustment hereinafter set forth and except as otherwise provided in the Certificate of Incorporation or required by law, each share of Series A Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters upon which the holders of the Common Stock of the Company are entitled to vote.  In the event the Company shall at any time after the Issue Date declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the number of votes per share to which holders of shares of Series A 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 Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.
 
(B)    Except as otherwise provided herein, in the Certificate of Incorporation or in any other Certificate of Designations creating a series of Preferred Stock or any similar stock, and except as otherwise required by law, the holders of shares of Series A Preferred Stock and the holders of shares of Common Stock and any other capital stock of the Company having general voting rights shall vote together as one class on all matters submitted to a vote of stockholders of the Company.
 
(C)    Except as set forth herein, or as otherwise provided by law, holders of Series A 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 Common Stock as set forth herein) for taking any corporate action.
 
(D)    If, at the time of any annual meeting of stockholders for the election of directors, the equivalent of six quarterly dividends (whether or not consecutive) payable on any share or shares of Series A Preferred Stock are in default, the number of directors constituting the Board of Directors of the Company shall be increased by two.  In addition to voting together with the holders of Common Stock for the election of other directors of the Company, the holders of record of the Series A Preferred Stock, voting separately as a class to the exclusion of the holders of Common Stock shall be entitled at said meeting of stockholders (and at each subsequent annual meeting of stockholders), unless all dividends in arrears on the Series A Preferred Stock have been paid or declared and set apart for payment prior thereto, to vote for the election of two directors of the Company, the holders of any Series A Preferred Stock being entitled to cast a number of votes per share of Series A Preferred Stock as is specified in paragraph (A) of this Section 3.  Each such additional director shall serve until the next annual meeting of stockholders for the election of directors, or until his successor shall be elected and shall 

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qualify, or until his right to hold such office terminates pursuant to the provisions of this Section 3(D).  Until the default in payments of all dividends which permitted the election of said directors shall cease to exist, any director who shall have been so elected pursuant to the provisions of this Section 3(D) may be removed at any time, without cause, only by the affirmative vote of the holders of the shares of Series A Preferred Stock at the time entitled to cast a majority of the votes entitled to be cast for the election of any such director at a special meeting of such holders called for that purpose, and any vacancy thereby created may be filled by the vote of such holders.  If and when such default shall cease to exist, the holders of the Series A Preferred Stock shall be divested of the foregoing special voting rights, subject to revesting in the event of each and every subsequent like default in payments of dividends.  Upon the termination of the foregoing special voting rights, the terms of office of all persons who may have been elected directors pursuant to said special voting rights shall forthwith terminate, and the number of directors constituting the Board of Directors shall be reduced by two.  The voting rights granted by this Section 3(D) shall be in addition to any other voting rights granted to the holders of the Series A Preferred Stock in this Section 3.
 
Section 4.    Certain Restrictions.
 
(A)    Whenever quarterly dividends or other dividends or distributions payable on the Series A Preferred Stock as provided in Section 2 are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not earned or declared, on shares of Series A Preferred Stock outstanding shall have been paid in full, the Company shall not:
 
(i)declare or pay dividends, or make any other distributions, on any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock;
 
(ii)declare or pay dividends, 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 A Preferred Stock, except dividends paid ratably on the Series A 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 junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock, provided that the Company may at any time redeem, purchase or otherwise acquire shares of any such junior stock in exchange for shares of any stock of the Company ranking junior (as to dividends and upon dissolution, liquidation or winding up) to the Series A Preferred Stock or rights, warrants or options to acquire such junior stock; or
 
(iv)redeem or purchase or otherwise acquire for consideration any shares of Series A Preferred Stock, or any shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Preferred Stock, except in accordance with a purchase offer made in writing or by publication (as 

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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 and classes, shall determine in good faith will result in fair and equitable treatment among the respective series or classes.
 
(B)    The Company shall not permit any subsidiary of the Company to purchase or otherwise acquire for consideration any shares of stock of the Company unless the Company 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 A Preferred Stock purchased or otherwise acquired by the Company in any manner whatsoever shall be retired and cancelled promptly after the acquisition thereof.  All such shares shall upon their retirement 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 any conditions and restrictions on issuance set forth herein.
 
Section 6.    Liquidation, Dissolution or Winding Up.  Upon any liquidation, dissolution or winding up of the Company, no distribution shall be made (A) to the holders of the Common Stock or of shares of any other stock of the Company ranking junior, upon liquidation, dissolution or winding up, to the Series A Preferred Stock unless, prior thereto, the holders of shares of Series A Preferred Stock shall have received $100 per share, plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not earned or declared, to the date of such payment, provided that the holders of shares of Series A Preferred Stock shall be entitled to receive an aggregate amount per share, subject to the provision for adjustment hereinafter set forth, equal to 1,000 times the aggregate amount to be distributed per share to holders of shares of Common Stock, or (B) to the holders of shares of stock ranking on a parity upon liquidation, dissolution or winding up with the Series A Preferred Stock, except distributions made ratably on the Series A Preferred Stock and all such parity stock in proportion to the total amounts to which the holders of all such shares are entitled upon such liquidation, dissolution or winding up.  In the event, however, that there are not sufficient assets available to permit payment in full of the Series A liquidation preference and the liquidation preferences of all other classes and series of stock of the Company, if any, that rank on a parity with the Series A Preferred Stock in respect thereof, then the assets available for such distribution shall be distributed ratably to the holders of the Series A Preferred Stock and the holders of such parity shares in the proportion to their respective liquidation preferences.  In the event the Company shall at any time after the Issue Date declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the aggregate amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event under the proviso in clause (A) of the preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.
 

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Neither the merger or consolidation of the Company into or with another entity nor the merger or consolidation of any other entity into or with the Company (nor the sale of all or substantially all of the assets of the Company) shall be deemed to be a liquidation, dissolution or winding up of the Company within the meaning of this Section 6.
Section 7.    Consolidation, Merger, etc.  In case the Company shall enter into any consolidation, merger, combination or other transaction in which the shares of Common Stock are converted into, exchanged for or changed into other stock or securities, cash and/or any other property, then in any such case each share of Series A Preferred Stock shall at the same time be similarly converted into, exchanged for or changed into an amount per share (subject to the provision for adjustment hereinafter set forth) equal to 1,000 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 Common Stock is converted, exchanged or converted.  In the event the Company shall at any time after the Issue Date declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the amount set forth in the preceding sentence with respect to the conversion, exchange or change of shares of Series A Preferred Stock shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.
 
Section 8.    No Redemption.  The shares of Series A Preferred Stock shall not be redeemable from any holder.
 
Section 9.    Rank.  The Series A Preferred Stock shall rank, with respect to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding up of the Company, junior to all other series of Preferred Stock and senior to the Common Stock.
 
Section 10.    Amendment.  If any proposed amendment to the Certificate of Incorporation (including this Certificate of Designations) would alter, change or repeal any of the preferences, powers or special rights given to the Series A Preferred Stock so as to affect the Series A Preferred Stock adversely, then the holders of the Series A Preferred Stock shall be entitled to vote separately as a class upon such amendment, and the affirmative vote of two-thirds of the outstanding shares of the Series A Preferred Stock, voting separately as a class, shall be necessary for the adoption thereof, in addition to such other vote as may be required by the General Corporation Law of the State of Delaware.
 
Section 11.    Fractional Shares.  Series A Preferred Stock may be issued in fractions of a share that 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 A Preferred Stock.
 

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IN WITNESS WHEREOF, this Certificate of Designations is executed on behalf of the Company by its                      and attested by its Secretary this        th day of                       , 2003.
 
            
Name: 
Title:
 
Attest:
                        
Secretary
 
 
 
 
 

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EXHIBIT B
FORM OF RIGHT CERTIFICATE
Certificate No.  R-___                                                  ___ Rights
NOT EXERCISABLE AFTER                 , 2013 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS.  THE RIGHTS ARE SUBJECT TO REDEMPTION AT $.01 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.  UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING PERSON (AS DEFINED IN THE RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES THEREOF WILL BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.
Right Certificate
AMERICAN AXLE & MANUFACTURING HOLDINGS, 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 September 15, 2003 as the same may be amended from time to time (the “Rights Agreement”), between American Axle & Manufacturing Holdings, Inc., a Delaware corporation (the “Company”), and EquiServe Trust Company, N.A. as Rights Agent (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 City time, on September 15, 2013 at the office or agency of the Rights Agent designated for such purpose, or of its successor as Rights Agent, one one-thousandth of a fully paid non-assessable share of Series A Junior Participating Preferred Stock, par value $.01 per share (the “Preferred Stock”), of the Company, at a purchase price of $120.00 per one one-thousandth of a share of Preferred Stock (the “Purchase Price”), upon presentation and surrender of this Right Certificate with the Form of Election to Purchase duly executed.  The number of Rights evidenced by this Rights Certificate (and the number of one one-thousandths of a share of Preferred Stock which may be purchased upon exercise hereof) set forth above, and the Purchase Price set forth above, are the number and Purchase Price as of September 15, 2003 based on the Preferred Stock as constituted at such date.  As provided in the Rights Agreement, the Purchase Price, the number of one one-thousandths of a share of Preferred Stock (or other securities or property) which may be purchased upon the exercise of the Rights and the number of Rights evidenced by this Right Certificate are subject to modification and adjustment upon the happening of certain events.
This Right 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 Right Certificates.  Copies of the Rights 
 

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Agreement are on file at the principal executive offices of the Company.  The Company will mail to the holder of this Right Certificate a copy of the Rights Agreement without charge after receipt of a written request therefor.
This Right Certificate, with or without other Right Certificates, upon surrender at the office or agency of the Rights Agent designated for such purpose, may be exchanged for another Right Certificate or Right Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like aggregate number of shares of Preferred Stock as the Rights evidenced by the Right Certificate or Right Certificates surrendered shall have entitled such holder to purchase.  If this Right Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another Right Certificate or Right Certificates for the number of whole Rights not exercised.
Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate (i) may be redeemed by the Company at a redemption price of $.01 per Right or (ii) may be exchanged in whole or in part for shares of Preferred Stock or shares of the Company's Common Stock, par value $.01 per share.
No fractional shares of Preferred Stock or Common Stock will be issued upon the exercise or exchange of any Right or Rights evidenced hereby (other than fractions of Preferred Stock 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.
No holder of this Right Certificate, as such, shall be entitled to vote or receive dividends or be deemed for any purpose the holder of the Preferred Stock or of any other securities of the Company which may at any time be issuable on the exercise or exchange hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in the Rights Agreement) or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by this Right certificate shall have been exercised or exchanged as provided in the Rights Agreement.
This Right Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent.

B - 2

 

 
WITNESS the facsimile signature of the proper officers of the Company and its corporate seal.  Dated as of ____________________ _____, ________.
ATTEST:                        AMERICAN AXLE &
MANUFACTURING HOLDINGS, INC.
 
 
By:                              By:                        
 
 
Countersigned:
 
        
                        
as Rights Agent
 
 
By:                                   
Authorized Signatory
 

B - 3

 

 
Form of Reverse Side of Right Certificate
FORM OF ASSIGNMENT
(To be executed by the registered holder if such
holder desires to transfer the Right Certificate)
FOR VALUE RECEIVED ________________________ hereby sells, assigns and transfer unto ___________________________
__________________________________________________________
(Please print name and address of transferee )
__________________________________________________________
Rights represented by this Right Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint ________________________ Attorney, to transfer said Rights on the books of the within-named Company, with full power of substitution.
Dated:  ______________________, ____
 
                                
Signature
Signature Guaranteed:
Signatures must be guaranteed by a bank, trust company, broker, dealer or other eligible institution participating in a recognized signature guarantee medallion program.
The undersigned hereby certifies that the Rights evidenced by this Right Certificate are not beneficially owned by, were not acquired by the undersigned from, and are not being sold, assigned or transferred to, an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement).
    
                                
Signature
 

B - 4

 

EXHIBIT C
 
UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING PERSON (AS DEFINED IN THE RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES THEREOF WILL BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.
SUMMARY OF RIGHTS TO PURCHASE
Shares of Preferred Stock
On September 15, 2003 the Board of Directors of American Axle & Manufacturing Holdings, Inc. (the “Company”) declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of common stock, par value $.01 per share of the Company (the “Common Stock”).  The dividend is payable on September 25, 2003 (the “Record Date”) to the stockholders of record on that date.  Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $.01 per share (the “Preferred Stock”) of the Company at a price of $120.00 per one one-thousandth of a share of Preferred Stock (as the same may be adjusted, the “Purchase Price”).  The description and terms of the Rights are set forth in a Rights Agreement dated as of September 15, 2003 (as the same may be amended from time to time, the “Rights Agreement”), between the Company and EquiServe Trust Company, N.A., as Rights Agent (the “Rights Agent”).
Until the close of business on the earlier of (i) the tenth day after the first date of a public announcement that a person or group of affiliated or associated persons (an “Acquiring Person”) have acquired beneficial ownership of 15% or more of the outstanding shares of Common Stock or (ii) the tenth business day (or such later date as may be determined by action of the Board of Directors prior to such time as any person or group of affiliated persons becomes an Acquiring Person) after the date of commencement of, or the first public announcement of an intention to commence, a tender offer or exchange offer the consummation of which would result in the beneficial ownership by a person or group of 15% or more of the outstanding shares of Common Stock (the earlier of such dates being called the “Distribution Date”), the Rights will be evidenced by the Common Stock certificates.  
The Rights Agreement provides that, until the Distribution Date (or earlier redemption or expiration of the Rights), the Rights will be transferable only in connection with the transfer of Common Stock.  Until the Distribution Date (or earlier redemption or expiration of the Rights), the surrender for transfer of any certificates for shares of Common Stock outstanding as of the Record Date, even without a notation incorporating the Rights Agreement by reference or a copy of this Summary of Rights, will also constitute the transfer of the Rights associated with the shares of Common Stock represented by such certificate.  As soon as practicable following the Distribution Date, separate certificates evidencing the Rights (“Right Certificates”) will be mailed to holders of record of the Common Stock as of the close of business on the Distribution Date and such separate Right Certificates alone will evidence the Rights.
 

C - 1

 

 
The Rights are not exercisable until the Distribution Date.  The Rights will expire on September 15, 2013 (the “Final Expiration Date”), unless the Final Expiration Date is extended or unless the Rights are earlier redeemed or exchanged by the Company, in each case as described below.
The Purchase Price payable, and the number of shares of Preferred Stock or other securities or property issuable, upon exercise of the Rights are subject to adjustment from time to time to prevent dilution (i) in the event of a stock dividend on, or a subdivision, combination or reclassification of, the Preferred Stock, (ii) upon the grant to holders of the Preferred Stock of certain rights or warrants to subscribe for or purchase Preferred Stock at a price, or securities convertible into Preferred Stock with a conversion price, less than the then-current market price of the Preferred Stock or (iii) upon the distribution to holders of the Preferred Stock of evidences of indebtedness or assets (excluding regular periodic cash dividends or dividends payable in Preferred Stock) or of subscription rights or warrants (other than those referred to above).
The Rights are also subject to adjustment in the event of a stock dividend on the Common Stock payable in shares of Common Stock or subdivisions, consolidations or combinations of the Common Stock occurring, in any such case, prior to the Distribution Date.
Shares of Preferred Stock purchasable upon exercise of the Rights will not be redeemable.  Each share of Preferred Stock will be entitled, when, as and if declared, to a minimum preferential quarterly dividend payment of the greater of (a) $1 per share and (b) an amount equal to 1,000 times the dividend declared per share of Common Stock.  In the event of liquidation, dissolution or winding up of the Company, the holders of the Preferred Stock will be entitled to a minimum preferential liquidation payment of $100 per share (plus any accrued but unpaid dividends) but will be entitled to an aggregate 1,000 times the payment made per share of Common Stock.  Each share of Preferred Stock will have 1,000 votes, voting together with the Common Stock.  Finally, in the event of any merger, consolidation or other transaction in which shares of Common Stock are converted or exchanged, each share of Preferred Stock will be entitled to receive 1,000 times the amount received per share of Common Stock.  These rights are protected by customary antidilution provisions.
Because of the nature of the Preferred Stock's dividend, liquidation and voting rights, the value of the one one-thousandth interest in a share of Preferred Stock purchasable upon exercise of each Right should approximate the value of one share of Common Stock.
In the event that any person or group of affiliated or associated persons becomes an Acquiring Person, each holder of a Right, other than Rights beneficially owned by the Acquiring Person (which will thereupon become void), will thereafter have the right to receive upon exercise of a Right and payment of the Purchase Price, that number of shares of Common Stock having a market value of two times the Purchase Price.
In the event that, after a person or group has become an Acquiring Person, the Company is acquired in a merger or other business combination transaction or 50% or more of its consolidated assets or earning power are sold, proper provision will be made so that each holder of a Right (other than Rights beneficially owned by an Acquiring Person which will have become void) will thereafter have the right to receive, upon the exercise thereof at the 
 

C - 2

 

 
then-current exercise price of the Right, that number of shares of common stock of the person with whom the Company has engaged in the foregoing transaction (or its parent), which number of shares at the time of such transaction will have a market value of two times the Purchase Price.
At any time after any person or group becomes an Acquiring Person and prior to the acquisition by such person or group of 50% or more of the outstanding shares of Common Stock or the occurrence of an event described in the prior paragraph, the Board of Directors of the Company may exchange the Rights (other than Rights owned by such person or group which will have become void), in whole or in part, at an exchange ratio of one share of Common Stock, or a fractional share of Preferred Stock (or of a share of a similar class or series of the Company's preferred stock having similar rights, preferences and privileges) of equivalent value, per Right (subject to adjustment).
With certain exceptions, no adjustment in the Purchase Price will be required until cumulative adjustments require an adjustment of at least 1% in such Purchase Price.  No fractional shares of Preferred Stock will be issued (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) and in lieu thereof, an adjustment in cash will be made based on the market price of the Preferred Stock on the last trading day prior to the date of exercise.
At any time prior to the time an Acquiring Person becomes such, the Board of Directors of the Company may redeem the Rights in whole, but not in part, at a price of $.01 per Right (the “Redemption Price”).  The redemption of the Rights may be made effective at such time, on such basis and with such conditions as the Board of Directors in its sole discretion may establish.  Immediately upon any redemption of the Rights, the right to exercise the Rights will terminate and the only right of the holders of Rights will be to receive the Redemption Price.
For so long as the Rights are then redeemable, the Company may, except with respect to the Redemption Price, amend the Rights Agreement in any manner.  After the Rights are no longer redeemable, the Company may, except with respect to the Redemption Price, amend the Rights Agreement in any manner that does not adversely affect the interests of holders of the Rights.
Until a Right is exercised or exchanged, the holder thereof, as such, will have no rights as a stockholder of the Company, including, without limitation, the right to vote or to receive dividends.
A copy of the Rights Agreement has been filed with the Securities and Exchange Commission as an Exhibit to a Registration Statement on Form 8-K dated February 8, 2011.  A copy of the Rights Agreement is available free of charge from the Company.  This summary description of the Rights does not purport to be complete and is qualified in its entirety by reference to the Rights Agreement, as the same may be amended from time to time, which is hereby incorporated herein by reference.
 
 
 
 
 

C - 3Cyplasin Biomedical Ltd.: Exhibit 10.1 - Filed by newsfilecorp.com

EXCLUSIVE LICENSE and OPTION AGREEMENT

This Exclusive License Agreement (the “Agreement”) is entered
into as of February 7, 2009 (the “Effective Date”), by and between Bioxen Ltd
including its affiliates, legal successors and subsidiaries with its principal
offices registered as Nautilus House, La Cour des Casernes, St.Helier.Jersey,
JE1 3NH, Channel Islands (“Bioxen”) and Cyplasin Biomedical Ltd., a (Nevada
corporation), with its principal offices located at Unit 131 Advanced Technology
Center, 9650-20th ave., Edmonton, Alberta Canada T6N1G1 including its
affiliates, legal successors and subsidiaries, (“Cyplasin”); and collectively
referred to as the “Parties”; and

Whereas Bioxen Ltd wishes to acquire an exclusive
license from Cyplasin Biomedical Ltd. for the Territory to make use and make
practice of Cyplasin Intellectual Property (IP) for various therapeutic
purposes: and Cyplasin Biomedical Ltd. wishes to grant said license;

NOW, THEREFORE, in consideration of the premises and of
the covenants and obligations hereinafter set forth, and intending to be legally
bound, the Parties hereby agree as follows:

1.0 DEFINITIONS

The following definitions shall apply throughout this
Agreement:

1.1 “AFFILIATE” means, with respect to a particular
Party, a person, corporation or other entity that, directly or indirectly,
through one or more intermediaries, controls, is controlled by or is under
common control with such Party. For the purposes of this definition, "control"
means the direct or indirect ownership by a Party of at least fifty percent
(50%) of the outstanding voting securities of the controlled entity; provided,
that in any country where the law does not permit foreign equity ownership of at
least fifty percent (50%), then with respect to corporations organized under
such country's laws, "control" shall mean the direct or indirect ownership by a
Party of outstanding voting securities of such corporation at the maximum amount
permitted by the law of such country.

1.2 “CONFIDENTIAL INFORMATION” subject to Article 2.0
herein shall mean all Information however disclosed or samples supplied by one
party to the other pursuant to this Agreement.

1.3 “EFFECTIVE DATE” shall mean the date first above
written as the effective date of this License Agreement.

1.4 “FIELDS OF USE” means the use of the LICENSED
TECHNOLOGY which is directly or indirectly incorporated into a LICENSEE”S
Licensed Product or related service where such is intended for use as a
therapeutic product or service within the GRANTED TERRITORY but shall exclude
any Non Therapeutic Applications or uses.

1.5 GROSS SALES" shall mean the gross receipts from the
SALE of LICENSED PRODUCT by the Licensee or by any of its sub licensees less
deductions for: (i) transportation and insurance charges; (ii) sales and excise
taxes, or paid taxes, duties or other governmental charges levied on or measured
by the billing amount when included in billing, (ii) normal and customary trade,
quantity and cash discounts allowed; (iii) sales commissions; and (iv)
allowances on account of rejection or return by customers.

1.6 “INFORMATION” shall mean any CONFIDENTIAL
INFORMATION of a technical or other nature relating to LICENSED TECHNOLOGY,
which is in the possession of Cyplasin Biomedical Ltd. as of the EFFECT IVE
DATE, and which is necessary or useful to LICENSEE in furtherance of the
development, manufacture or marketing of LICENSED PRODUCT. Information may
include or mean any and all information and data of any kind, including without
limitation techniques, inventions, practices, methods, knowledge, know-how,
skill, experience, test data, analytical and quality control data, marketing,
cost, sales and manufacturing data and descriptions, compositions, and
assays.

1.7 “INTELLUCTUAL RIGHTS (IP) RIGHTS” shall mean the
United States patent applications and foreign counterparts thereof, or any continuations,
continuations-in-part, divisions, re-issues, additions, renewals, improvements
embodiments, extensions or improvements thereof, and any IP or patents issuing
there from.

1.8 “LICENSEE” shall mean Bioxen Ltd and its AFFILIATES
and or their successors.

1.9 “LICENSED TECHNOLOGY” shall mean any product,
manufactured, used or sold which if produced or sold would infringe, induce
infringement of, or contribute to the infringement of at least one VALID CLAIM
contained in the Cyplasin IP and issued patents worldwide which would include
but not be limited to any current IP, improvements or derivatives thereof; such
that if any VALID CLAIM were contained, instead, in an issued patent not
included in such IP Rights.

1.10 “LICENSED PRODUCT “means any derived or developed
commercial product that comprises or contains, or is manufactured based upon or
utilizing or is derived from, the LICENSED TECHNOLOGY or any part thereof.

1.11 “LICENSOR” shall mean Cyplasin Biomedical Ltd. and
its AFFILIATES and their successors.

1.12 “NON THERAPEUTIC APPLICATIONS” subject to 1.4 shall
mean the use of in part or in whole of cyplasin as defined in the IP for
purposes other than treating cell-based pathologies in humans or animals.

1.13 “OPTION” subject to Article 8.0 and Retained Rights
shall mean that discretionary right of the Licensee to execute an agreement
whereby the IP ownership is transferred in favor of the Licensee where the
Licensee now owns 100% of the IP.

1.14 "REASONABLE EFFORTS" shall mean efforts and
resources commonly used in the research-based pharmaceutical industry for the
research, development and commercialization of a product at a similar stage in
its product life taking into account the establishment of the product in the
marketplace, the competitiveness of the marketplace, the proprietary position of
the product, the regulatory structure involved, the profitability of the product
and other relevant factors.

1.15 "REGULATORY APPROVALS” means any approvals,
licenses, registrations or authorizations of any federal, state or local
regulatory agency, department, bureau or other government entity, necessary for
the manufacture, use, storage, import, transport or sale, of products in a
regulatory jurisdiction.

1.16 “SALE” shall mean any transaction for which
consideration is received for the sale, lease, license, transfer or other
disposition of LICENSED PRODUCT by LICENSEE or by its sublicenses’ within the
TERRITORY

1.17 "SUB LICENSEE" shall mean any Third Party expressly
licensed by a Party to make and sell one or more Licensed Products. A Sub
licensee shall not include distributors or sales agents that do no more than
purchase and resell finished Products on behalf of a Party.

1.18 “TERRITORY” shall mean worldwide.

1.19 "THIRD PARTY" means any entity other than the
“Parties” or an Affiliate of the Parties.

1.20 “VALID CLAIM” shall mean a claim of a patent
application or patent, which claim has not expired and has not been held
unenforceable, unpatentable or invalid by decision of a court or other
governmental agency of competent jurisdiction.

2.0 CONFIDENTIALITY

2.1 CONFIDENTIAL INFORMATION disclosed in documentary
form shall be marked "Confidential." Oral discussions of CONFIDENTIAL
INFORMATION shall be if noted as confidential be reduced to writing by the
disclosing party and a copy marked "Confidential" provided to the receiving
party within thirty (30) days of the disclosure date.

However, CONFIDENTIAL INFORMATION shall not include information
which: (i)was known to the receiving party prior to the date of disclosure by
the disclosing party or is developed independently of information received from
the disclosing party by those who have not had access to this information; or
(ii) is lawfully received in good faith at any time by the receiving party from
others lawfully in possession of the same and having the right to disclose the
same; or (iii) is, as of the date of receipt, in the public domain or
subsequently enters the public domain other than by reason of acts or omissions
of the receiving party; or (iv) is required to be disclosed by law, rule of
court or regulation; or (v) is independently developed by the receiving party,
as evidenced by written records.

2.2 CONFIDENTIAL TERM: The receiving party shall hold
all CONFIDENTIAL INFORMATION in strict confidence for a period of five (5) years
from the disclosure date; not use said CONFIDENTIAL INFORMATION except as
provided in this Agreement; and not disclose, directly or indirectly, said
CONFIDENTIAL INFORMATION to others except with the prior written consent of the
disclosing party. The receiving party shall use at least the same degree of care
to maintain CONFIDENTIAL INFORMATION secret as the receiving party uses in
maintaining secret its own confidential information, but always at least a
reasonable degree of care. The receiving party shall restrict disclosure of
CONFIDENTIAL INFORMATION solely to those of its employees having a need to know
such CONFIDENTIAL INFORMATION in order to accomplish the purposes of this
Agreement. The receiving party shall also advise its employees, before they have
access to CONFIDENTIAL INFORMATION, of the obligations of the receiving party
under this Agreement, and require such employees and consultants to maintain
those obligations.

2.3 LEGAL DISCLOSURE: Notwithstanding any of the
provisions of Paragraph 2.2, LICENSEE shall be entitled, without Cyplasin
Biomedical Ltd.’s prior written approval, to disclose any CONFIDENTIAL
INFORMATION of CYPLASIN BIOMEDICAL LTD.: (i) to the FDA or any other health
authority in the world, but only to the extent required by law or regulation to
obtain approval to test or market LICENSED PRODUCT and (ii) to any other third
party for the sole purpose of assisting Bioxen Ltd in accomplishing the purposes
of this Agreement provided that, prior to any such disclosure, the recipient
shall be bound by written confidentiality obligations that are at least as
strict as those of Bioxen Ltd under this Agreement.

2.4 UPON TERMINATION: the receiving party shall promptly
return all written materials or samples of tangible property received hereunder,
with the exception that one copy of said written materials may be retained by
the receiving party solely for archival purposes. In the alternative, the
receiving party shall destroy all materials and confirm such destruction in
writing.

2.5 PUBLIC DISCLOSURE: Notwithstanding any other
provision of this Agreement, it is recognized by LICENSEE that CYPLASIN
BIOMEDICAL LTD., shall have the obligation to publicly disclose this agreement
upon its execution.

3.0 GRANT OF LICENSE

3.1 TERMS: Assuming all payment terms as defined in
Article 5.0 are met and kept current CYPLASIN BIOMEDICAL LTD. grants to BIOXEN
LTD as per this Article 3.1 and 3.2 an exclusive license for the TERRITORY
within the “FIELD OF USE” under the PATENT RIGHTS within the TERRITORY; to make,
have made, use, sell, and offer for sale the LICENSED TECHNOLOGY and derived
PRODUCTS thereof. Bioxen Ltd shall have the exclusive right to utilize the
Licensed Technology to research and develop Products for use and sale in the
Bioxen Ltd Territory and to commercialize and or use for non commercial purposes
the Products in the Bioxen Ltd Territory.

3.2 RETAINED RIGHTS: As per Article 3.1 Bioxen shall
have the right to use for any commercial or non commercial purpose whatsoever
and be granted a license to make use of the LICENSE TECHNOLOGY and IP rights and
any improvements, or continuances thereof or derived from, as given under the
terms of this agreement. Bioxen Ltd will be solely responsible for the
maintenance and filings of all patents related to the IP, its TECHNOLOGY and
INFORMATION within the Territory. Notwithstanding the preceding license grant,
and subject to license provisions as per Article 6.5 & 8 CYPLASIN BIOMEDICAL
LTD. shall retain all rights to any Non Therapeutic Application.

3.3 SUBLICENSE: LICENSEE shall have the right to enter
into sublicense agreements, provided that all applicable material terms of this Agreement are incorporated
into such sublicense agreements to provide for the protection of CYPLASIN
BIOMEDICAL LTD. and its trustees, officers, employees and agents, and provided
further that LICENSEE remains primarily liable for its obligations under this
Agreement. A copy of any sublicense agreement shall be provided to CYPLASIN
BIOMEDICAL LTD. for its review and approval prior to execution which shall not
be unreasonably withheld.

3..4 NON- ASSIGNMENT: Except as given in sub section 3.3
above and as per section 8.0 the “Option”; this agreement and any and all of the
rights and obligations of each party hereunder shall not be assigned, delegated,
sold, transferred or otherwise disposed of, by operation of law or otherwise,
without the prior written consent of the other party provided, however,
that a party may assign this Agreement without consent of the other party to a
third party that acquires control of such party or in connection with an
assignment to an AFFILIATE.

3.5 COPY RIGHT & TRADE MARK: Subject to section 8.0,
and 11.5.1 Bioxen shall have unlimited use of the copy right term or trademark
term “Cyplasin” when in reference to a Product and the IP and know how of
the technology, but may not use it in terms of identifying a corporate
identity.

4.0 FIDUCIARY EFFORTS

4.1 BEST EFFORTS: LICENSEE shall use reasonable efforts
to finance and advance the development of LICENSED TECHNOLGY PRODUCTS and IP to
effect their commercialization as soon as practicable, consistent with
prevailing sound business practices relating to the commercialization of similar
products; thereafter, during the term of this Agreement, Bioxen Ltd agrees to
use Reasonable Efforts to develop such Products and to market and sell in the
Bioxen Ltd Territory such Products developed by Bioxen Ltd.

5.0 PAYMENTS

5.1 ROYALTY: In consideration of the license granted to
LICENSEE under this Agreement, LICENSEE shall pay to CYPLASIN BIOMEDICAL LTD. a
royalty of one and one quarter percent (1.25%) of all Gross Revenue of Licensed
Products sold by Bioxen Ltd, its Affiliates, or Sub licensees in the Bioxen Ltd
Territory. Said payment will be calculated on a quarterly basis and accrued
Royalties will be to Cyplasin Biomedical Ltd. or its legal assigns or
successors, within sixty (60) days after the end of each such calendar
quarter.

Such royalties shall be calculated on the basis of Net Revenue
in the local currency of each country, and converted into U.S. Dollars and paid
in U.S. Dollars on the basis of the average currency exchange rate as publicly
published for such currency exchange. Royalty payments for sales in the
Territory shall commence with the first unit of each LICENSED PRODUCT sold by
LICENSEE or by its sublicenses and will end coincident with the expiration date
of the last-to-expire issued patent within PATENT RIGHTS within the TERRITORY
covering such LICENSED PRODUCT.

5.2 LICENSING AND MAINTAINANCE FEES: Under the terms of
this license agreement Bioxen shall pay to Cyplasin a non-refundable license fee
of Twenty-Five Thousand Euros (25,000 Euros). This fee shall be paid:

- Within thirty (30) days of completion of any corporate
financing - in the minimum collective amount of Five Hundred Thousand Euro
(500,000 Euro) - for Bioxen, any associated affiliate, or other entity which
directly makes practice of the IP,

- The fee shall not be creditable against any other payments
due to Cyplasin.

5.2.1 In order to keep the IP in good standing and in addition
to the license fee; Bioxen will pay all current outstanding and all ongoing
continued related patent and maintenance fees owed to:

HUBER & SCHÜSSLER 
Truderinger Str. 246 
D-81825
München 
Germany

Or to any other similar office whose responsibility is to
maintain said IP.

5.3 REMITTANCE OF PAYMENTS: under this Article 5.0
payments will be made by means of wire or electronic transfer to the receiving
Party's account in a bank to be designated by such Party in writing. If LICENSEE
fails to make any payment due to Cyplasin within the time prescribed by the
terms of this Agreement, a penalty equal to one percent (1.5%) of the amount due
and unpaid on the first day of each calendar month shall be added to the amount
due. However, the provisions of this section 5.3 shall not apply to any
underpayment of royalties which is uncovered by audit of the books of LICENSEE
or of its sublicenses pursuant to Paragraph 5.6

5.4 TERM: Bioxen Ltd shall pay the royalties specified
above, until the later of the expiration of ten (10) years from the first
commercial launch of such Product in the Territory or the last to expire of the
Patents with claims covering such Product whichever is longer.

5.5 REPORTS: All amounts payable under this Agreement
shall be accompanied by a report listing the gross selling price of each Product
sold during such period and the calculation of Net Revenue based on such sales,
including all other information necessary to determine the appropriate amount of
such royalty payments, and any additional information or reports required under
the Agreement.

5.6 RIGHT TO AUDIT: The financial statements of LICENSEE
and of its sublicenses will be audited annually by an independent certified
public accountant. Cyplasin shall have the right to employ, at its own expense,
a qualified accountant of its own selection to whom LICENSEE shall make no
unreasonable objection, to examine the books and records of LICENSEE and its
sublicenses relating to the SALE of LICENSED PRODUCT for the purpose of
verifying the amount of royalty payments due. Such examination of books and
records of LICENSEE and its sublicenses shall take place during regular business
hours during the term of this Agreement and for two (2) years after its
termination, provided however, that such an examination shall not take place
more than once a year and shall not cover records for more than the preceding
three (3) years, and provided that such accountant shall report to Cyplasin as
to the accuracy of the royalty statements and payments. If such accountant shall
find an underpayment to Cyplasin a presentation of a written statement
substantiating the underpayment will be provided to LICENSEE.

If LICENSEE is not in agreement with the findings of the
qualified accountant selected by Cyplasin then LICENSEE shall so notify of such
in writing within thirty (30) days of receipt by LICENSEE of said findings, in
which case the parties will jointly appoint, within a further period of thirty
(30) days, an independent qualified accountant to validate, at Licensee’s
expense, Cyplasin's accountant's findings, and the decision of said independent
accountant shall be final. If said independent accountant verifies that an
underpayment has occurred, the amount due and interest (accruing at the
prevailing Prime Rate from the date payment was due through the date of actual
payment to Cyplasin shall be paid within thirty (30) days. Should such
underpayment represent more than five percent (5%) of the royalties due to
Cyplasin, LICENSEE shall reimburse Cyplasin for the cost of the examination by
Cyplasin’s accountant which disclosed such underpayment.

All payments due to CYPLASIN BIOMEDICAL LTD. under this
Agreement shall be made in United States dollar except where so noted.

5.7 TAXES: Taxes levied on account of the royalties and
other payments accruing or made to Cyplasin under this Agreement shall be paid
by Cyplasin. If provision is made in law or regulation for withholding of taxes
of any type, levies or other charges with respect to any royalty or other
amounts payable under this Agreement by Bioxen to Cyplasin then Bioxen shall be
entitled to deduct such tax, levy or charge from the royalty or other payment to
be made to Cyplasin and pay such tax, levy or charge to the proper taxing
authority. A receipt of payment of the tax, levy or charge secured shall be
promptly delivered to Cyplasin, together with copies of all pertinent communications
from or with such governmental authorities with respect thereto. Bioxen agrees
to cooperate with Cyplasin in any effort in claiming any exemption from such
deductions or withholdings under any double taxation or similar agreement or
treaty from time to time in force and in minimizing the amount required to be so
withheld or deducted, such cooperation to consist of providing receipts of
payment of such withheld tax or other documents reasonably available to
Bioxen.

6.0 INTELLECTUAL PROPERTY

6.1 OWNERSHIP. Subject to the terms of this Agreement;
and section 8.0, Bioxen and Cyplasin shall each own any and all of their issued
or pending Intellectual Property rights, their continuances in part, title,
entitlements or interests as existed prior to this agreement being enacted ,
during the TERM of this agreement and subsequent to any TERMINATION.

6.2 ENFORCEMENT RIGHTS. With respect to infringement of
any of the LICENSE TECHNOLOGY or related IP rights in the Territory, Bioxen
shall have the initial right or opportunity, to institute, prosecute and control
any action or proceeding with respect to such infringement in the Territory.
Bioxen shall bear the costs of such patent enforcement within the Territory and
shall retain for its own account any amounts recovered from Third Parties. In
the event Bioxen is unable to enforce said Patent Rights, Cyplasin shall have
the right, but not the obligation, to institute, prosecute and control any
action or proceeding with respect to infringement in the Territory. Cyplasin
shall bear the costs of patent enforcement within the Territory and retain for
its own account any amounts recovered from Third Parties.

The Party first having knowledge of any infringement of the
Patent Rights shall promptly notify the other Party in writing. The notice shall
set forth the facts of such infringement in reasonable detail. If a Party having
the right to enforce a Patent pursuant to this Article 6.2 fails to bring an
action or proceeding against a suspected infringer within a period of ninety
(90) days after having knowledge of such infringement in the Field, the other
Party shall have the right to bring and control an action against such infringer
by counsel of its own choice. If one Party brings any such action or proceeding,
the other Party agrees to be joined as a Party plaintiff if necessary to
prosecute the action and to give the first Party reasonable assistance and
authority to file and prosecute the suit. The Party controlling a suit hereunder
shall, at the other Party's expense, retain any and all recovery from such suit.
The Party controlling a suit hereunder shall not settle or consent to an adverse
judgment in any such action which would have a material adverse effect on the
rights or interests of the other Party without the prior express written consent
of the other Party.

6.3 NO WARRANTY: Except as otherwise provided in this
Agreement, neither Party makes any warranty with respect to the validity,
perfection or dominance of any Patent or other proprietary right or with respect
to the absence of rights of Third Parties which may be infringed by the
manufacture or sale of any Product.

6.4 THIRD PARTY INFRINGEMENT: If a Third Party asserts
that a patent, trademark or other intangible right owned by it is infringed by
any Product in the Territory, Bioxen Ltd will be solely responsible for
defending against any such assertions at its expense. Each Party will give
prompt written notice to the other of any such claim. Cyplasin Biomedical Ltd.
will assist in the defense of any such claim as reasonably requested by Bioxen
Ltd, at expense, and may retain separate counsel at its own expense. Prior to
settling any such claim, Bioxen Ltd shall consider in good faith any rights and
interests of Cyplasin Biomedical Ltd. adversely affected by such settlement and
shall use good faith efforts to minimize such affect.

6.5 NON THERAPEUTIC APPLICATION If in the event Cyplasin
develops a non therapeutic product or application based upon the IP as defined
in Exhibit A attached herein then Cyplasin shall pay to Bioxen a royalty of
1.25% on the sales of such subject to the same terms and conditions of Article
5.

6.5.1 EXCERISE OF BIOXEN OPTION as per Article 8.0
herein then Bioxen will automatically assign to Cyplasin Biomedical Ltd., an
irrevocable, fully paid, exclusive, worldwide, sub –licensable, license for any
Non Therapeutic Application product or service which Cyplasin
may have developed based upon the IP as defined herein. Subject to terms defined
in Article 5.0 Cyplasin Biomedical Ltd, agrees to pay a royalty on such Non
Therapeutic Application products or service to Bioxen at a rate of 1.25% . 

7.0 REPRESENTATIONS AND WARRANTIES

7.1 RIGHTS: CYPLASIN represents that it has the right to
enter into this Agreement and to make the herein grant of license under PATENT
RIGHTS and TECHNICAL INFORMATION. CYPLASIN further represents that it is the
sole and exclusive owner of PATENT RIGHTS and TECHNICAL INFORMATION, all of
which are free and clear of any liens, charges and encumbrances. To the best of
CYPLASIN knowledge, no third party has expressed to CYPLASIN in writing, that
any patent or patent application included in the PATENT RIGHTS is invalid or
unenforceable.

7.2 NO WARRANTY: CYPLASIN makes no warranty that
exercise by LICENSEE or its sublicenses of the rights granted herein will not
infringe any patents owned by a third party, or that any patent application
within PATENT RIGHTS will issue as a patent.

7.3 EACH OF THE PARTIES WARRANT TO EACH OTHER:

(a) This Agreement is a legal and valid obligation binding upon
such Party and enforceable in accordance with its terms. The execution, delivery
and performance of the Agreement by such Party does not conflict with any
agreement, instrument or understanding, oral or written, to which it is a Party
or by which it is bound, nor violate any law or regulation of any court,
governmental body or administrative or other agency having jurisdiction over
it.

(b) Such Party has not, and during the term of the Agreement
will not, grant any right to any Third Party relating to its respective
technology in the Field licensed to the other Party hereunder which would
conflict with such rights granted to the other Party under Article 3.

8.0 OPTION

Under terms of this license Bioxen Ltd shall have the right to
exercise an option to enter into a INTELLECTUAL PROPERTY - SALE AND ASSIGNMENT
AGREEMENT as given in EXHIBIT B

9.0 TERM AND TERMINATION

9.1 TERM: This Agreement shall commence as of the
Effective Date and, unless sooner terminated as provided in Articles 8.0 and
this section 9.0, shall continue in effect until the latest of:

(a) The expiration of the last to expire of the Licensed
Patents, or

(b) The date on which Bioxen is no longer obligated to pay
royalties to each other under Article 5.0 or,

(c) The Effective Date of which Bioxen exercises its Option
under Article 8.0 above

9.2 TERMINATION

9.2.1 BANKRUPTCY: If either party is adjudicated
bankrupt, files a voluntary petition in bankruptcy, makes or executes an
assignment for the benefit of creditors, is liquidated or dissolved, or if a
receiver, trustee, liquidator, sequestrator or other judicial representative is
appointed for either party or its property; then in such an event this agreement
is deemed terminated and the bankrupt party shall execute any documents that are
necessary to reassign or transfer to the non-bankrupt party the interest granted
hereunder, or

9.2.2 MATERIAL BREACH: if Bioxen fails to meet its
financial obligations under this Agreement, or to not properly maintain the IP
in good standing, where such breach is not cured within thirty (30) days of written notice thereof this agreement shall immediately be
terminated and will become subject to Article 9 herein.

90 days of written notice from the non- breaching Party to the
other Party, specifying in detail the nature of said breach this Agreement may
be terminated by the non breaching Party.

	 	(a) 	
      if either of the Parties terminates for uncured breach,
      then the Parties obligations under Articles 5 6, 9 &10 shall survive
      termination

	 	 	 
	 	(b) 	
      In the event of any termination of this agreement, all
      outstanding or any payments in arrears from one Party to the other, will
      immediately be calculated with balances paid in
full.

9.3 SURVIVING RIGHTS Upon termination of this Agreement,
Cyplasin shall have the right to retain any amounts already paid by Bioxen under
this Agreement, and Bioxen shall pay to Cyplasin all amounts accrued which are
then due or which become due based on the SALE of LICENSED PRODUCT, manufactured
or produced prior to the effective date of termination. In addition to survival
of previous Articles 2 (Confidentiality) and Articles as provided elsewhere in
the Agreement, the obligations and rights of the Parties under Articles 5, 6,9
and 10 of this Agreement will survive any termination.

9.4 EFFECT OF BIOXEN TERMINATION: , In the event Bioxen
materially breaches this agreement which effects a termination of this Agreement
except in the case of an exercise of its Option as per Article 8, then Cyplasin
Biomedical Ltd. is automatically deemed to have received an exclusive,
fully-paid, Irrevocable, sub licensable, perpetual license in the Territory for
the License Technology /Products and their continuances, improvements derived
thereof for any and all purposes, subject to the right granted in this Agreement
and will immediately return to Cyplasin all Information which includes but is
not limited to all records, log books, lab notes, reports, publications and any
and all materials related to the IP and or Licensed Product, which shall include
but not be limited to any R&D data which relates to the continuances,
embodiments, improvements or derived products thereof. All copyrighted material,
trade marks and other branding materials related to Cyplasin shall also be
returned and become the property of Cyplasin Biomedical Ltd.

9.5 EFFECT OF CYPLASIN TERMINATION In the event Cyplasin
materially breaches this agreement which creates a termination of this Agreement
then Bioxen is automatically deemed to have received an exclusive, fully-paid,
Irrevocable, sub licensable, perpetual license in the Territory for the License
Technology /Products and their continuances, improvements derived thereof for
any and all purposes, subject to the right granted in this Agreement.

10.0 INDEMNIFICATION

10.1. BIOXEN LTD shall indemify hold harmless, and
defend CYPLASIN BIOMEDICAL LTD., its trustees, officers, employees and agents
against any and all claims, including legal fees and costs arising out of the
exercise of any rights granted under this Agreement, without limiting the
generality of the foregoing, against any damages, losses or liabilities
whatsoever including but not limited to death or injury to person or damage to
property arising from the commercial sale of LICENSED PRODUCT by LICENSEE, its
sublicenses or any customers of any of them in any manner whatsoever. CYPLASIN
BIOMEDICAL LTD. shall give LICENSEE written notice of any claim(s) related to
LICENSED PRODUCT within thirty (30) days, and CYPLASIN BIOMEDICAL LTD. shall
reasonably cooperate with LICENSEE and its insurance carrier in the defense of
any such claim(s).

10.2 CYPLASIN BIOMEDICAL shall indemnify, defend and
hold harmless Bioxen Ltd its trustees, officers, employees and agents against
any and all claims, excluding claims stemming from and against any and all
liability, damage, loss, cost (including reasonable attorneys' fees) and expense
resulting from any claim of infringement, bodily injury or property damage (a)
relating to the development, manufacture, use, distribution or sale of any
Product in the or (b) due to the negligence or willful misconduct of Bioxen Ltd
or its employees or agents.

10.2 INSURANCE, subject to the initiation of any
commercialization event of any of the Licensed Technology or Product; LICENSEE
agrees to maintain, on any LICENSED PRODUCT that is sold or otherwise to be
covered by Comprehensive Liability Insurance, including Product Liability
Insurance, with a reputable and financially secure insurance carrier(s) to cover
the activities of LICENSEE and/or its sublicenses, if any, as contemplated by
this Agreement for minimum suitable amounts to be set at the discretion of the
Licensee.

Such insurance shall name CYPLASIN BIOMEDICAL LTD, its legal
successor, its trustees, officers, employees, and agents as additional insurers.
Upon written notification of change of control or other material change, to
Bioxen from Cyplasin; Bioxen shall furnish a new Certificate of Insurance,
evidencing coverage of two million dollars ($2,000,000.00) with thirty (30) days
of such written notice of change of control or other material change.

Licensee’s insurance shall be written to cover claims incurred,
discovered, manifested, or made during the term, or after the expiration, of
this Agreement. LICENSEE shall at all times comply, through insurance or
self-insurance, with all statutory workers' compensation and employers'
liability requirements covering any and all employees with respect to activities
performed under this Agreement.

11.0 MISCELLANEOUS

11.1 ASSIGNMENT. Subject to section 3.4 and 8.0 neither
Party shall assign any of its rights and obligations hereunder except (i) as
incident to the merger, consolidation, reorganization or acquisition of stock
affecting actual voting control or of substantially all of the assets of the
assigning Party or (ii) to an Affiliate; provided, however, that in no event
shall either Party's rights and obligations hereunder be assigned without prior
written notice to the other Party. In any case, neither Party may make an
assignment of its assets which renders it unable to perform its material
obligations hereunder. This Agreement shall be binding upon and inure to the
benefit of the Parties hereto and their permitted successors and assigns.

11.3 FORCE MAJEURE. Neither Party shall lose any rights
hereunder or be liable to the other Party for damages or losses on account of
failure of performance by the defaulting Party if the failure is occasioned by
government action, war, fire, explosion, flood, strike, lockout, embargo, act of
God, or any other similar cause beyond the control of the defaulting Party,
provided that the Party claiming Force Majeure has exerted all Reasonable
Efforts to avoid or remedy such Force Majeure; provided, however, in no event
shall a Party be required to settle any labor dispute or disturbance.

11.4 FURTHER ACTIONS. Each Party agrees to execute,
acknowledge and deliver such further instruments, and to do all such other acts,
as may be necessary or appropriate in order to carry out the purposes and intent
of this Agreement.

11.5 TRADEMARK RIGHTS. Except as otherwise provided
herein, no right, express or implied, is granted by the Agreement to use in any
manner the name "Cyplasin Biomedical Ltd." or "Bioxen Ltd" or any other trade
name or trademark of the other Party in connection with the performance of the
Agreement.

11.5.1 DOMAIN TRANSFER. Bioxen shall assume the
ownership including the domain name cyplasin.com, and financial responsibility of
maintaining a web site currently located as www.cyplasin.com. Prior to this transfer Cyplasin shall
modify the web site to have deleted all of its corporate and other relevant
information so as to only reflect the technical nature of the technology.
Subsequent to this transfer Bioxen shall have unlimited access and editorial
freedom to post what it deems best for its own corporate and technological
advancement.

11.6 NOTICES. Time is of the essence under this
Agreement. Notices and payments to the parties shall be addressed as
follows:

All notices and other communications hereunder shall be in
writing and shall be deemed given if delivered personally or by facsimile transmission (receipt
verified), telexed, mailed by registered or certified mail (return receipt
requested), postage prepaid, or sent by express courier service, to the Parties
at the following addresses (or at such other address for a Party as shall be
specified by like notice; provided, that notices of a change of address shall be
effective only upon receipt thereof):

	If to Cyplasin Biomedical Ltd., addressed to: 
	  
	Attention: President & CEO 
	Cyplasin Biomedical Ltd. 
	Unit 131 Advanced Technology Center 
	Edmonton, Alberta Canada T6N 1G1 
	  
	  
	If to Bioxen Ltd, addressed to: 
	  
	Attention: General Manager 
	Bioxen Ltd 
	Nautilus House, La Cour des Casernes, 
	St.Helier.Jersey, JE1 3NH, Channel Islands

or to such other address as a party may specify by notice from
time to time in writing to the other parties in the manner specified in this
Section.

11.7 JURIDICTION & DISPUTE RESOLUTION. The Parties
agree that this entire agreement shall be governed by the laws of the State of
Nevada, USA and If any dispute, controversy or claim arises out of or in
connection with this Agreement, the Parties shall use reasonable efforts to
settle it by Good Faith negotiation within sixty (60) days of notice from one
Party to the other of such dispute, controversy or claim, before pursuing any
other remedies available to them. If either Party fails or refuses to
participate in such negotiations, or if, in any event, the dispute, controversy
or claim is not resolved to the satisfaction of both Parties within the sixty
(60) day period, any such dispute, controversy or claim shall be settled by
arbitration. Any such arbitration shall be conducted in accordance with the
International Arbitration Rules of any such arbitration shall be in a location
within the Country of the United States of America and the Arbitration shall be
governed by and construed in accordance with the laws of the State of Nevada,
USA. The arbitrators shall include one independent, un-affiliated nominee
selected by each Party and a third neutral arbitrator selected by such nominees.
The Parties agree that any arbitration panel shall include members knowledgeable
as to the evaluation of biopharmaceutical technology. Judgment upon the award
rendered may be entered in the highest state or federal court or forum, state or
federal, having jurisdiction; provided, however, that the provisions of this
Article 11.7 shall not apply to any dispute or controversy as to which any
treaty or law prohibits such arbitration. The prevailing Party shall be entitled
to reasonable attorney's fees and costs to be fixed by the arbitrators.

11.8 WAIVER. Except as specifically provided for herein,
the waiver from time to time by either of the Parties of any of their rights or
their failure to exercise any remedy shall not operate or be construed as a
continuing waiver of same or of any other of such Party's rights or remedies
provided in this Agreement.

11.9 SEVERABILITY. If any term, covenant or condition of
this Agreement or the application thereof to any Party or circumstance shall, to
any extent, beheld to be invalid or unenforceable, then the remainder of this
Agreement, or the application of such term, covenant or condition to Parties or
circumstances other than those as to which it is held invalid or unenforceable,
shall not be affected thereby and each term, covenant or condition of this
Agreement shall be valid and be enforced to the fullest extent permitted by
law.

11.10 AMBIGUTIES. Ambiguities, if any, in this Agreement
shall not be construed against any Party, irrespective of which Party may be
deemed to have authored the ambiguous provision.

11.11 ENTIRE AGREEMENT. This Agreement and any
agreements referenced herein set forth all the covenants, promises, agreements, warranties, representations,
conditions and understandings between the Parties hereto and supersede and
terminate all prior written or verbal agreements and understanding between the
Parties. There are no covenants, promises, agreements, warranties,
representations conditions or understandings, either oral or written, between
the Parties other than as set forth herein and therein. No subsequent
alteration, amendment, change or addition to this Agreement shall be binding
upon the Parties hereto unless reduced to writing and signed by the respective
authorized officers of the Parties.

11.12 HEADINGS. The Article and Paragraph headings
contained herein are for the purposes of convenience only and are not intended
to define or limit the contents of the Article or Paragraphs to which they
apply.

11.13 FAILURE OF CYPLASIN BIOMEDICAL LTD. to enforce a
right under this Agreement shall not act as a waiver of that right and shall not
preclude CYPLASIN BIOMEDICAL LTD. from later asserting that right relative to
the particular situation involved.

11.14 ANY BREACH whatsoever of any provision of Article
5 (entitled PAYMENTS) shall be deemed a material breach of a material provision
of this Agreement.

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

	Cyplasin Biomedical Ltd. 	 Bioxen Ltd 
	  	  
	By /s/ Garth Likes 	 By /s/ Christian Petzelt 
	 	 
	Name Garth Likes 	Name Christian Petzelt 
	 	 
	Date FEBRUARY 7, 2009 	Date: FEBRUARY 14, 2009 

10

Exhibit A–Cyplasin Biomedical Ltd. Patents

Cyplasin Biomedical Ltd. Intellectual Property shall consist of
the following issued patents, all current applications thereof, all derived and
continuations thereof:

- A patent, in all of its continuations and assigns and
derivatives, which describes a “Protein having an anti-tumoral effect,” has been
granted as defined below:

US Patent No. 6,171,818 B1
was issued January 9, 2001 

European Patent EP 0 858 465
was issued January 29, 2003 

Japanese Patent NrHei 9-516992 was issued May 20, 2008

A second patent, in all of its continuations and assigns and
derivatives, entitled “Cytotoxic Cyplasin of the Sea Hare, Aplysia punctata,
cDNA Cloning and Expression of Bioreactive Recombinants” with US-Application No.
10/501,098 and European Application No 02019 914.7 -1521 has been granted in the
United States.

US Patent No. 7,271,242 B2
was issued September 18, 2007 

Australian Patent Nr2002361168 was issued on May 8, 2008

11

Exhibit B

INTELLECTUAL PROPERTY - SALE AND ASSIGNMENT AGREEMENT

THIS INTELLECTUAL PROPERTY TRANSFER AGREEMENT (the
“Agreement”) is made on [date] the `EFFECTIVE DATE` and being an integral
part of the said License Agreement as incorporated herein

BETWEEN

Bioxen Ltd including its affiliates, legal successors and
subsidiaries with its principal offices registered as Nautilus House, La Cour
des Casernes, St.Helier, Jersey, JE1 3NH, Channel Islands (“Bioxen”) and
Cyplasin Biomedical Ltd., a (Nevada corporation), with its principal offices
located at Unit 131 Advanced Technology Center, 9650-20th ave.,
Edmonton, Alberta Canada T6N1G1 including its affiliates, legal successors and
subsidiaries, (“Cyplasin”); and collectively referred to as the “Parties”;
and

WHEREAS

Cyplasin has agreed to sell and/or transfer, assign all of its
and its applicable affiliates’ right, title and interest in the Intellectual
Property (as defined below) to Bioxen, and

Bioxen has agreed to purchase and accept the same for the
Consideration (as defined below). 

NOW, IT IS AGREED as follows:

1.0 Definitions and Interpretation in this
Agreement:

Business Day means a day (other than a Saturday
or Sunday) on which banks are open in Vancouver, B.C. Canada for the transaction
of a full range of business activities.

Completion means completion of the transfer
hereunder in accordance with Section 3.0 

Consideration has the meaning given to it Section
2.2.

Effective Date means the completion of the
Transfer Time for the sale and or assignment of the Intellectual Property has
been completed and the Consideration for such has been delivered. 

Intellectual Property means all technical know
how and documentation related thereto and all intellectual property rights
therein and other intellectual property rights described on Schedule
A.

Transfer Time means close of the Business Day on
the date in which the Consideration is completed.

IN THIS AGREEMENT:

a) The headings are inserted for convenience only
and shall not affect the construction of this Agreement;

b) A reference to sell or purchase
or transfer includes a reference to procure the sale of or
procure the purchase of or procure the transfer of, as the case may be; and

c) General words introduced by the word other
shall not be given a restrictive meaning by reason of the fact that they
are preceded by words indicating a particular class of act, matter or thing, nor
by the fact that they are followed by particular examples intended to be
embraced by the general words.

2. The Transfer and License Back

2.1 Effective as of the Transfer Time, Cyplasin hereby sells
and transfers and Bioxen hereby purchases all of Cyplasin’s and its applicable affiliates’ right, title and
interest in the Intellectual Property as defined in Schedule A. If during the
term of the license Cyplasin may have had developed any non-therapeutic related
IP then this as well shall be considered to be a part of the assigned IP to
Bioxen. However at the request of Cyplasin, Bioxen shall issue a irre3vocable,
fully paid world wide exclusive license bearing 1.25% royalty back to Cyplasin
at the same terms and conditions as given in this license herein.

12

2.2 The price for the sale and transfer in Section 2.1 shall be
the sum of 500,000 Euros. (the “Consideration”).

2.3 If any sales tax, value added tax or other transfer tax is
properly chargeable in respect of the sale and purchase in Section 2.1, the
Bioxen shall pay to Cyplasin the amount of such tax in addition to and at the
same time as the Consideration. Cyplasin will issue to Bioxen a proper tax
invoice in respect thereof.

2.4 BIOXEN HEREBY ACKNOWLEDGES THAT CYPLASIN MAKES NO
REPRESENTATION OR WARRANTY TO BIOXEN UNDER THIS AGREEMENT, EITHER EXPRESS OR
IMPLIED, WITH RESPECT TO THE INTELLECTUAL PROPERTY, AND THAT THE ABOVE SALE AND
TRANSFER IS MADE TO THE COMPANY ON AN “AS IS” BASIS.

3. COMPLETION

3.1 The sale and purchase of the Intellectual Property shall be
completed, and legal title and ownership in respect of the Intellectual Property
shall be deemed to pass to Bioxen, in each case, with effect upon the Effective
Date.

3.2 Cyplasin shall:

a) Cause to be delivered or made available to Bioxen such
documents as Bioxen may reasonably require to complete the sale and purchase of
the Intellectual Property; and

b) Do such other things reasonably necessary to give full
effect to this Agreement. 

3.3 Bioxen shall:

a) Pay or cause to be paid on the Effective Date, the
Consideration in cash to Cyplasin or to whom and in the manner as Cyplasin may
direct; and b) Cause to be delivered or made available to Cyplasin such
additional documents as Cyplasin may reasonably require to complete the sale and
purchase of the Intellectual Property; and

c) Do such other things reasonably necessary to give full
effect to this Agreement.

3.3 Upon the Effective Date the previous License
Agreement which was entered into between the Parties on January 23, 2009 and for
which these agreement forms an integral part thereof; for use of the Cyplasin
Intellectual Property shall be caused to be terminated and all outstanding
payments owed to Cyplasin shall be brought to a zero balance and all other
effects of such Termination shall be in force and in effect.

4. ENTIRE AGREEMENT

This Agreement (including the Schedules, which are hereby
incorporated in the terms of this Agreement) sets forth the entire understanding
and agreement among the parties as to matters covered herein and therein and
supersedes any prior understanding, agreement or statement (written or oral) of
intent among the parties with respect to the subject matter hereof.

5. COUNTERPARTS

This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original and all of which together shall
be deemed to be one and the same instrument.

13

6. VARIATION

No waiver shall be deemed to have been made by any party of any
of its rights under this Agreement unless the same is in writing and is signed
on its behalf by an authorized signatory. Any such waiver shall constitute a
waiver only with respect to the specific matter described in such writing and
shall in no way impair the rights of the party granting such waiver in any other
respect or at any other time. To be binding, any amendment of this Agreement
must be effected by an instrument in writing signed by the parties.

7. NOTICES

All notices, demands, instructions, waivers, consents or other
communications to be provided pursuant to this Agreement shall be in writing,
shall be effective upon receipt, and shall be sent by hand, facsimile, air
courier or certified or registered mail, return receipt requested, as
follows:

	If to Cyplasin Biomedical Ltd., addressed to: 
	  
	Attention: President & CEO 
	Cyplasin Biomedical Ltd. 
	Unit 131 Advanced Technology Center 
	Edmonton, Alberta Canada T6N 1G1 
	  
	  
	If to Bioxen Ltd, addressed to: 
	  
	Attention: General Manager 
	Bioxen Ltd 
	Nautilus House, La Cour des Casernes, 
	St.Helier.Jersey, JE1 3NH, Channel Islands

or to such other address as a party may specify by notice from
time to time in writing to the other parties in the manner specified in this
Section.

8. COSTS

Bioxen and Bioxen shall each pay its own costs, charges and
expenses incurred in connection with the preparation and implementation of this
Agreement and the transactions contemplated by it.

Pursuant to the previous license which is in effect until the
completion of this agreement Bioxen will have paid the continuing maintenance
and all other associated patent costs and these payments shall continue to apply
herein.

9. GOVERNING LAW; SUBMISSION TO JURISDICTION; APPOINTMENT OF
AGENT FOR SERVICE OF PROCESS; WAIVER OF JURY TRIAL.

9.1 THE AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEVADA AND EACH PARTY HEREBY
IRREVOCABLY AGREES THAT ANY LEGAL ACTION OR PROCEDDING AGAINST IT ARISING OUT OF
THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE BROUGHT ONLY IN
THE SUPREAME COURT OF THE STATE OF NEVADA.

9.2 Each party irrevocably waives any objection to the venue of
the courts designated in Section 10.1 (whether on the basis of forum non
conveniens or otherwise), and accepts and submits to the jurisdiction of
such courts in connection with any legal action or proceeding against it arising
out of or concerning this Agreement.

14

10. U.S. BANKRUPTCY CODE The parties acknowledge that
this Agreement is an “executory contract” as provided in Section 365(n) of Title 11, United States Code (the “U.S. Bankruptcy Code”) and
may contain licenses to “intellectual property,” as provided in Section 365(n)
thereof. Each party acknowledges that if it as a debtor in possession or a
trustee in bankruptcy in a case under the Bankruptcy Code rejects this
Agreement, the other party may elect to retain its rights under this Agreement
as provided in Section 365(n) of the U.S. Bankruptcy Code to the fullest extent
permitted by law, subject to all of such party’s obligations and restrictions
hereunder. Upon written request of one party to the other party or to an
applicable bankruptcy trustee, the other party or such bankruptcy trustee shall
not interfere with the rights of the requesting party as provided in this
Agreement, except as otherwise provided by law or equity.

15

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

	Cyplasin Biomedical Ltd. 	 Bioxen Ltd 
	 	 
	By /s/ Garth Likes 	By /s/ Christian Petzelt 
	 	 
	Name Garth Likes 	Name Christian Petzelt 
	 	 
	Date August 1, 2009 	 Date: August 9, 2009 

16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}]]