Document:

Exhibit 4.1

 

FORM OF

 

RIGHTS
AGREEMENT

 

between

 

CELERA
CORPORATION

 

and

 

as Rights
Agent

 

Dated as
of ·,
2008

 

 

1

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  Section 1.

  	
  Certain
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 2.

  	
  Appointment of
  Rights Agent

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 3.

  	
  Issuance of
  Rights Certificates

  	
  6

  
	
   

  	
   

  	
   

  
	
  Section 4.

  	
  Form of
  Rights Certificates

  	
  8

  
	
   

  	
   

  	
   

  
	
  Section 5.

  	
  Countersignature
  and Registration

  	
  9

  
	
   

  	
   

  	
   

  
	
  Section 6.

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

  	
  10

  
	
   

  	
   

  	
   

  
	
  Section 7.

  	
  Exercise of
  Rights; Purchase Price; Expiration Date of Rights

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 8.

  	
  Cancellation
  and Destruction of Rights Certificates

  	
  13

  
	
   

  	
   

  	
   

  
	
  Section 9.

  	
  Reservation
  and Availability of Capital Stock

  	
  13

  
	
   

  	
   

  	
   

  
	
  Section 10.

  	
  Preferred
  Stock Record Date

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 11.

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

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 12.

  	
  Certificate
  of Adjusted Purchase Price or Number of Shares

  	
  23

  
	
   

  	
   

  	
   

  
	
  Section 13.

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

  	
  23

  
	
   

  	
   

  	
   

  
	
  Section 14.

  	
  Fractional
  Rights and Fractional Shares

  	
  25

  
	
   

  	
   

  	
   

  
	
  Section 15.

  	
  Rights of
  Action

  	
  27

  
	
   

  	
   

  	
   

  
	
  Section 16.

  	
  Agreement of
  Rights Holders

  	
  27

  
	
   

  	
   

  	
   

  
	
  Section 17.

  	
  Rights Certificate
  Holder Not Deemed a Stockholder

  	
  28

  
	
   

  	
   

  	
   

  
	
  Section 18.

  	
  Concerning
  the Rights Agent

  	
  28

  
	
   

  	
   

  	
   

  
	
  Section 19.

  	
  Merger or
  Consolidation or Change of Name of Rights Agent

  	
  29

  
	
   

  	
   

  	
   

  
	
  Section 20.

  	
  Duties of
  Rights Agent

  	
  29

  

 

1

 

	
   

  	
   

  	
   

  
	
  Section 21.

  	
  Change of
  Rights Agent

  	
  31

  
	
   

  	
   

  	
   

  
	
  Section 22.

  	
  Issuance of
  New Rights Certificates

  	
  32

  
	
   

  	
   

  	
   

  
	
  Section 23.

  	
  Redemption
  and Termination

  	
  32

  
	
   

  	
   

  	
   

  
	
  Section 24.

  	
  Exchange

  	
  33

  
	
   

  	
   

  	
   

  
	
  Section 25.

  	
  Notice of
  Certain Events

  	
  34

  
	
   

  	
   

  	
   

  
	
  Section 26.

  	
  Notices

  	
  35

  
	
   

  	
   

  	
   

  
	
  Section 27.

  	
  Supplements
  and Amendments

  	
  36

  
	
   

  	
   

  	
   

  
	
  Section 28.

  	
  Successors

  	
  36

  
	
   

  	
   

  	
   

  
	
  Section 29.

  	
  Determinations
  and Actions by the Board of Directors, etc.

  	
  37

  
	
   

  	
   

  	
   

  
	
  Section 30.

  	
  Benefits of
  this Agreement

  	
  37

  
	
   

  	
   

  	
   

  
	
  Section 31.

  	
  Severability

  	
  37

  
	
   

  	
   

  	
   

  
	
  Section 32.

  	
  Governing
  Law

  	
  38

  
	
   

  	
   

  	
   

  
	
  Section 33.

  	
  Counterparts

  	
  38

  
	
   

  	
   

  	
   

  
	
  Section 34.

  	
  Descriptive
  Headings

  	
  38

  

 

EXHIBITS

 

Exhibit A — Form of Certificate of
Designation, Preferences and Rights

 

Exhibit B — Form of Rights
Certificates

 

Exhibit C — Form of Summary of
Rights

 

2

 

RIGHTS
AGREEMENT

 

RIGHTS AGREEMENT, dated as of ·, 2008 (the “Agreement”),
between Celera Corporation, a Delaware corporation (the “Company”), and                         
(the “Rights Agent”).

 

W  I  T  N  E  S  S  E  T  H

 

WHEREAS, on ·,
2008 (the “Rights Dividend Declaration Date”), the Board of Directors of
the Company authorized and declared a dividend distribution of one Right (as
hereinafter defined) for each share of common stock, par value $0.01 per share,
of the Company (the “Common Stock”) outstanding at the close of business
on ·,
2008 (the “Record Date”), and has authorized the issuance of one Right
(as such number may hereinafter be adjusted pursuant to the provisions of Section 11(p) hereof)
for each share of Common Stock of the Company issued between the Record Date
(whether originally issued or delivered from the Company’s treasury) and the
Distribution Date (as hereinafter defined), each Right initially representing
the right to purchase one one-thousandth of a share of Series A Junior
Participating Preferred Stock of the Company (the “Preferred Stock”)
having the rights, powers and preferences set forth in the form of Certificate
of Designation, Preferences and Rights attached hereto as Exhibit A, upon
the terms and subject to the conditions hereinafter set forth (the “Rights”);

 

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

 

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

 

(a)       “Acquiring
Person” shall mean any Person who or which, together with all Affiliates
and Associates of such Person, shall be the Beneficial Owner of 15% or more of
the shares of Common Stock then outstanding, but shall not include: (i) the
Company, (ii) any Subsidiary of the Company, (iii) any employee
benefit plan of the Company, or of any Subsidiary of the Company, or any Person
or entity organized, appointed or established by the Company for or pursuant to
the terms of any such plan, or (iv) any Person who becomes the Beneficial
Owner of fifteen percent (15%) or more of the shares of Common Stock then
outstanding as a result of a reduction in the number of shares of Common Stock
outstanding due to the repurchase of shares of Common Stock by the Company (or
any Subsidiary of the Company, any employee benefit plan of the Company or of
any Subsidiary of the Company, or any Person or entity organized, appointed or
established by the Company for or pursuant to the terms of any such plan)
unless and until such Person, after becoming aware that such Person has become
the Beneficial Owner of fifteen percent (15%) or more of the then outstanding
shares of Common Stock, acquires beneficial ownership of additional shares of
Common Stock representing one percent (1%) or more of the shares of Common
Stock then outstanding, or (v) any such Person who has reported or is
required to report such ownership (but less than twenty (20%)) on Schedule 13G
under the Exchange Act (or any comparable or successor report) or on Schedule
13D under the Exchange Act (or any comparable or

 

1

 

successor report) which Schedule 13D does not
state any intention to or reserve the right to control or influence the
management or policies of the Company or engage in any of the actions specified
in Item 4 of such schedule (other than the disposition of the Common Stock)
and, within 10 Business Days of being requested by the Company to advise it
regarding the same, certifies to the Company that such Person acquired shares
of Common Stock in excess of 14.9% inadvertently or without knowledge of the
terms of the Rights and who or which, together with all Affiliates and
Associates, thereafter does not acquire additional shares of Common Stock while
the Beneficial Owner of fifteen percent (15%) or more of the shares of Common
Stock then outstanding; provided, however, that if the Person
requested to so certify fails to do so within ten (10) Business Days or
breaches or violates such certification, then such Person shall become an
Acquiring Person immediately after such ten (10)-Business-Day period or such
breach or violation.

 

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

 

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

 

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

 

(i)  that such Person or any of such Person’s
Affiliates or Associates, directly or indirectly, owns or has the right to
acquire (whether such right is exercisable immediately or only after the
passage of time or upon the satisfaction of one or more conditions (whether or
not within the control of such Person), compliance with regulatory requirements
or otherwise) pursuant to any agreement, arrangement or understanding (whether
or not in writing) or upon the exercise of conversion rights, exchange rights,
other rights, warrants or options, or otherwise; provided, however,
that a Person shall not be deemed the “Beneficial Owner” of, or to “beneficially
own,” (A) securities tendered pursuant to a tender or exchange offer
made by such Person or any of such Person’s Affiliates or Associates until such
tendered securities are accepted for purchase or exchange, (B) securities
issuable upon exercise of Rights at any time prior to the occurrence of a
Triggering Event (as hereinafter defined), or (C) securities issuable upon
exercise of Rights from and after the occurrence of a Triggering Event which
Rights were acquired by such Person or any of such Person’s Affiliates or
Associates prior to the Distribution Date (as hereinafter defined) or pursuant
to Section 3(a) or Section 22 hereof (the “Original Rights”)
or pursuant to Section 11(i) hereof in connection with an adjustment
made with respect to any Original Rights;

 

(ii) that such Person or any of such Person’s
Affiliates or Associates, directly or indirectly, has the right to vote or

 

2

 

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

 

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

 

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

 

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

 

(g)       “Common
Stock” shall mean the common stock, par value $0.01 per share, of the
Company, or any other shares of capital stock of the Company into which such
stock shall be reclassified or changed, except that “Common Stock” when
used with reference to any Person other than the Company shall mean the capital
stock of such Person with the greatest voting power, or the equity securities
or other equity interest having power to control or direct the management, of
such Person.

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(q)       “Person”
shall mean any individual, firm, corporation, partnership, limited liability
company, trust, association, syndicate or other entity and includes, without
limitation, an unincorporated group of persons who, by formal or informal
agreement or arrangement (whether or not in writing), have embarked on a common
purpose or act.

 

(r)        “Preferred
Stock” shall mean shares of Series A Junior Participating Preferred
Stock, par value $0.01 per share, of the Company, and, to the extent that there
are not a sufficient number of shares of Series A Junior Participating
Preferred Stock authorized to permit the full exercise of the Rights, any other
series of preferred stock of the Company designated for such purpose containing
terms substantially similar to the terms of the Series A Junior
Participating Preferred Stock.

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

Section 3.           Issuance
of Rights Certificates.

 

(a)       Until the earlier of (i) the close
of business on the tenth (10th) Business Day (or such specified or unspecified
later date as may be determined by the Board of Directors before the occurrence
of the Distribution Date) after the Stock Acquisition Date (or, if the tenth (10th)
Business Day (or such later date) after the Stock Acquisition Date occurs
before the Record Date, the close of business on the Record Date), or (ii) the
close of business on the tenth (10th) Business Day (or such specified or
unspecified later date as may be determined by the Board of Directors before
the occurrence of the Distribution Date) after the date that a tender or
exchange offer by any Person (other than the Company, any Subsidiary of the
Company, any employee benefit plan of the Company or of any Subsidiary of the
Company, or any Person or entity organized, appointed or established by the
Company for or pursuant to the terms of any such plan) is first commenced
within the meaning of Rule 14d-2(a) of the General Rules and
Regulations under the Exchange Act if, upon consummation thereof, such Person
would become an Acquiring Person, in either instance (the earlier of (i) and
(ii) being herein referred to as the “Distribution Date”), (x) the
Rights will be evidenced (subject to the provisions of paragraph (b) of
this Section 3) by the balance indicated in the book-entry account system
of the transfer agent for the Common Stock registered in the names of the
holders of the Common Stock (which shares of Common Stock shall also be deemed
to represent certificates for Rights) or, in the case of certificated shares,
the certificates for the Common Stock registered in the names of the holders of
the Common Stock (which certificates for Common Stock shall also be deemed to
be certificates for Rights), and not by separate certificates, and (y) the
Rights will be transferable only in connection with the transfer of the
underlying shares of Common Stock (including a transfer to the Company).  As soon as practicable after the Distribution
Date, the Rights Agent will send by first-class, insured, postage-prepaid mail,
to each record holder of the Common Stock as of the close of business on the
Distribution Date, at the address of such holder shown on the records of the
Company, one or more rights certificates, in substantially the form of Exhibit B
hereto (the “Rights Certificates”), evidencing one Right for each share
of Common Stock so held, subject to adjustment as provided herein.  In the event that an adjustment in the number
of Rights per share of Common Stock has been made pursuant to Section 11(p) hereof,
at the time of distribution of the Rights Certificates, the Company shall make
the necessary and appropriate rounding adjustments (in accordance with Section 14(a) hereof)
so that Rights Certificates representing only whole numbers of Rights are
distributed and cash is paid in lieu of any fractional Rights.  As of and after the Distribution Date, the
Rights will be evidenced solely by such Rights Certificates.

 

(b)       The Company will make available, as
promptly as practicable following the Record Date, a copy of a Summary of
Rights, in substantially the form attached hereto as Exhibit C (the “Summary
of Rights”) to any holder of Rights who may so request from time to time
prior to the Expiration Date (as such term is defined in Section 7(a) hereof).  With respect to the Common Stock outstanding
as of the Record Date, or issued subsequent to the Record Date, unless and
until the Distribution Date shall occur, the Rights will be evidenced by the
balances indicated in the book-entry account system of the transfer agent for
the Common Stock or, in the case of certificated 

 

6

 

shares, such
certificates for the Common Stock and the registered holders of the Common
Stock shall also be the registered holders of the associated Rights.  Until the earlier of the Distribution Date or
the Expiration Date, the transfer of any shares of Common Stock in respect of
which Rights have been issued shall also constitute the transfer of the Rights
associated with such shares of Common Stock.

 

(c)       Rights shall be issued in respect of all
shares of Common Stock that are issued (whether originally issued or from the
Company’s treasury) after the Record Date but prior to the earlier of the
Distribution Date or the Expiration Date and shall bear the following legends:

 

(i)        Confirmation and account statements sent
to holders of shares of Common Stock in book-entry form (which shares of Common
Stock shall also be deemed to represent certificates for Rights) shall bear the
following legend:

 

The shares of Common Stock, par value $0.01 per share, of Celera
Corporation (the “Company”) entitle the holder hereof to certain Rights
as set forth in the Rights Agreement between the Company and the Rights Agent
thereunder (the “Rights Agent”), dated as of ·, 2008, as it may
be amended, restated, renewed or extended 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 offices of the Rights
Agent.  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 the shares to which this
statement relates.  The Rights Agent will
mail to the holder of shares to which this statement relates a copy of the
Rights Agreement, as in effect on the date of mailing, without charge, promptly
after receipt of a written request therefor. 
Under certain circumstances set forth in the Rights Agreement, Rights
beneficially owned (as such term is defined in the Rights Agreement) by any
Person who is, was or becomes an Acquiring Person or any Affiliate or Associate
thereof (as such terms are defined in the Rights Agreement), whether currently
held by or on behalf of such Person or by any subsequent holder, may become
null and void.

 

With respect to shares of Common Stock in
book-entry form for which there has been sent a confirmation or account
statement containing the foregoing legend, until the earlier of (i) the
Distribution Date or (ii) the Expiration Date, the Rights associated with
the Common Stock represented by such shares of Common Stock shall be evidenced
by such shares of Common Stock alone and registered holders of Common Stock
shall also be the registered holders of the associated Rights, and the transfer
of any of such shares of 

 

7

 

Common Stock shall also constitute the
transfer of the Rights associated with such shares of Common Stock.

 

(ii)           In the case of certificated shares,
certificates representing shares of Common Stock (which certificates shall also
be deemed to be certificates for Rights) shall bear the following legend if
such certificates are issued after the Record Date but prior to the earlier of
the Distribution Date or the Expiration Date:

 

This certificate also evidences and entitles
the holder hereof to certain Rights as set forth in the Rights Agreement
between Celera Corporation (the “Company”) and the Rights Agent
thereunder (the “Rights Agent”), dated as of ·, 2008 (the “Rights
Agreement”), the terms of which are hereby incorporated herein by reference
and a copy of which is on file at the principal offices of the Company.  Under certain circumstances, as set forth in
the Rights Agreement, such Rights will be evidenced by separate certificates
and will no longer be evidenced by this certificate.  The Company will mail to the holder of this
certificate a copy of the Rights Agreement, as in effect on the date of
mailing, without charge, promptly after receipt of a written request
therefor.  Under certain circumstances
set forth in the Rights Agreement, Rights issued to, or held by, any Person who
is, was or becomes an Acquiring Person or any Affiliate or Associate thereof
(as such terms are defined in the Rights Agreement), whether currently held by
or on behalf of such Person or by any subsequent holder, may become null and
void.

 

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

 

Section 4.           Form of
Rights Certificates

 

(a)       The Rights Certificates (and the forms of
election to purchase and of assignment to be printed on the reverse thereof)
shall each be substantially in the form set forth in Exhibit 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 Agreement, or as may be
required to comply with any applicable law or with any rule or regulation
made pursuant thereto or with any rule or regulation of any stock exchange
on which the Rights may from time to time be listed, or to conform to
usage.  Subject to the provisions of Section 11
and Section 22 hereof, the Rights Certificates, whenever distributed,
shall be dated as of the Record Date and on their face shall entitle the
holders thereof to purchase such number of one one-thousandths of a share of
Preferred Stock as 

 

8

 

shall be set forth
therein at the price set forth therein (such exercise price per one one-thousandth
of a share, the “Purchase Price”), but the amount and type of securities
purchasable upon the exercise of each Right and the Purchase Price thereof
shall be subject to adjustment as provided herein.

 

(b)       Any Rights Certificate issued pursuant to
Section 3(a), Section 11(i) or Section 22 hereof that
represents Rights beneficially owned by: 
(i) an Acquiring Person or any Associate or Affiliate of an Acquiring
Person, (ii) a transferee of an Acquiring Person (or of any such Associate
or Affiliate) who becomes a transferee after the Acquiring Person becomes such,
or (iii) a transferee of an Acquiring Person (or of any such Associate or
Affiliate) who becomes a transferee prior to or concurrently with the Acquiring
Person becoming such and receives such Rights pursuant to either (A) a
transfer (whether or not for consideration) from the Acquiring Person to
holders of equity interests in such Acquiring Person or to any Person with whom
such Acquiring Person has any continuing agreement, arrangement or
understanding (whether or not in writing) regarding the transferred Rights or (B) a
transfer that the Board of Directors of the Company has determined is part of a
plan, arrangement or understanding that has as a primary purpose or effect the
avoidance of Section 7(e) hereof, and any Rights Certificate issued
pursuant to Section 6 or Section 11 hereof upon transfer, exchange,
replacement or adjustment of any other Rights Certificate referred to in this
sentence, shall contain (to the extent feasible) the following legend:

 

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

 

Section 5.           Countersignature
and Registration.

 

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

 

9

 

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

 

(b)       Following the Distribution Date, the
Rights Agent will keep, or cause to be kept, at its principal office or offices
designated as the appropriate place for surrender of Rights Certificates upon
exercise or transfer, books for registration and transfer of the Rights
Certificates issued hereunder.  Such
books shall show the names and addresses of the respective holders of the
Rights Certificates, the number of Rights evidenced on its face by each of the
Rights Certificates and the date of each of the Rights Certificates.

 

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

 

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

 

(b)       Upon receipt by the Company and the
Rights Agent of evidence reasonably satisfactory to them of the loss, theft,
destruction or mutilation of a Rights Certificate, and, in case of loss, theft
or destruction, of indemnity or security reasonably satisfactory to them, and
reimbursement to the Company and the Rights Agent of all reasonable expenses
incidental thereto, and upon surrender to the Rights Agent and cancellation of
the Rights Certificate if mutilated, the Company will execute 

 

10

 

and deliver a new Rights
Certificate of like tenor to the Rights Agent for countersignature and delivery
to the registered owner in lieu of the Rights Certificate so lost, stolen,
destroyed or mutilated.

 

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

 

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

 

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

 

(c)       Upon receipt of a Rights Certificate
representing exercisable Rights, with the form of election to purchase and the
certificate duly executed, accompanied by payment, with respect to each Right
so exercised, of the Purchase Price per one one-thousandth of a share of
Preferred Stock (or other shares, securities, cash or other assets, as the case
may be) to be purchased as set forth below and an amount equal to any
applicable transfer tax, the Rights Agent shall, subject to Section 20(k) hereof,
thereupon promptly (i) (A) requisition from any transfer agent of the
shares of Preferred Stock (or make available, if the Rights Agent is the
transfer agent for such shares) certificates for the total number of one
one-thousandths of a share of Preferred Stock to be purchased and the Company
hereby irrevocably authorizes its transfer agent to comply with all such
requests, or (B) if the Company shall have elected to deposit the total
number of shares of Preferred Stock issuable upon exercise of the Rights
hereunder with a depositary agent, requisition from the depositary agent
depositary receipts representing such number of one one-thousandths of a share
of Preferred Stock as are to be purchased (in which case certificates for the
shares of Preferred Stock represented by such receipts shall be deposited by
the transfer agent with the depositary agent) and the Company will direct the
depositary agent to comply with such request, (ii) requisition from the
Company the amount of cash, if any, to be paid in lieu of fractional shares in
accordance with Section 14 hereof, (iii) after receipt of such certificates
or depositary receipts, cause 

 

11

 

the same to be
delivered to or, upon the order of the registered holder of such Rights
Certificate, registered in such name or names as may be designated by such
holder, and (iv) after receipt thereof, deliver such cash, if any, to or
upon the order of the registered holder of such Rights Certificate.  The payment of the Purchase Price (as such
amount may be reduced pursuant to Section 11(a)(iii) hereof) shall be
made in cash or by certified bank check or bank draft payable to the order of
the Company.  In the event that the
Company is obligated to issue other securities (including Common Stock) of the
Company, pay cash and/or distribute other property pursuant to Section 11(a) hereof,
the Company will make all arrangements necessary so that such other securities,
cash and/or other property are available for distribution by the Rights Agent,
if and when appropriate.  The Company
reserves the right to require prior to the occurrence of a Triggering Event
that, upon any exercise of Rights, a number of Rights be exercised so that only
whole shares of Preferred Stock would be issued.

 

(d)       In case the registered holder of any
Rights Certificate shall exercise less than all the Rights evidenced thereby, a
new Rights Certificate evidencing the Rights remaining unexercised shall be
issued by the Rights Agent and delivered to, or upon the order of, the
registered holder of such Rights Certificate, registered in such name or names
as may be designated by such holder, subject to the provisions of Section 14
hereof.

 

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

 

(f)        Notwithstanding anything in this Agreement
to the contrary, neither the Rights Agent nor the Company shall be obligated to
undertake any action with respect to a registered holder upon the occurrence of
any purported exercise as set forth in this Section 7 unless such
registered holder shall have (i) completed and signed the certificate
contained in the form of election to purchase set forth on the reverse side of
the 

 

12

 

Rights Certificate
surrendered for such exercise, and (ii) provided such additional evidence
of the identity of the Beneficial Owner (or former Beneficial Owner) or
Affiliates or Associates thereof as the Company shall reasonably request.

 

Section 8.           Cancellation
and Destruction of Rights Certificates.

 

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

 

Section 9.           Reservation
and Availability of Capital Stock.

 

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

 

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

 

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

 

13

 

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

 

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

 

(e)       The Company further covenants and agrees
that it will pay when due and payable any and all federal and state transfer
taxes and charges that may be payable in respect of the issuance or delivery of
the Rights Certificates and of any certificates for a number of one
one-thousandths of a share of Preferred Stock (or Common Stock and/or other
securities, as the case may be) upon the exercise of Rights.  The Company shall not, however, be required
to pay any transfer tax that may be payable in respect of any transfer or
delivery of Rights Certificates to a Person other than, or the issuance or
delivery of a number of one one-thousandths of a share of Preferred Stock (or
Common Stock and/or other securities, as the case may be) in respect of a name
other than that of the registered holder of the Rights Certificates evidencing
Rights surrendered for exercise, nor shall the Company be required to issue or
deliver any certificates (or make any entries in the book-entry account system
of the transfer agent) for a number of one one-thousandths of a share of
Preferred Stock (or Common Stock and/or other securities, as the case may be)
in a name other than that of the registered holder upon the exercise of any
Rights until such tax shall have been paid (any such tax being payable by the
holder of such Rights Certificates at the time of surrender) or until it has
been established to the Company’s satisfaction that no such tax is due.

 

Section 10.         Preferred
Stock Record Date.  Each person in
whose name any certificate or entry in the book-entry account system of the
transfer agent for a number of one one-thousandths of a share of Preferred
Stock (or Common Stock and/or other securities, as the case may be) is issued
upon the exercise of Rights shall for all purposes be deemed to have become the
holder of record of such fractional shares of Preferred Stock (or Common Stock
and/or other securities, as the case may be) represented thereby on, and such
certificate or entry in the book account system shall be 

 

14

 

dated, the date upon which the
Rights Certificate evidencing such Rights was duly surrendered and payment of
the Purchase Price (and all applicable transfer taxes) was made; provided,
however, that if the date of such surrender and payment is a date upon
which the Preferred Stock (or Common Stock and/or other securities, as the case
may be) transfer books of the Company are closed, such Person shall be deemed
to have become the record holder of such shares (fractional or otherwise) on,
and such certificate or entry in the book-entry account system shall be dated,
the next succeeding Business Day on which the Preferred Stock (or Common Stock
and/or other securities, as the case may be) transfer books of the Company are
open.  Prior to the exercise of the Rights
evidenced thereby, the holder of a Rights Certificate shall not be entitled to
any rights of a stockholder of the Company with respect to shares for which the
Rights shall be exercisable, including, without limitation, the right to vote,
to receive dividends or other distributions or to exercise any preemptive
rights, and shall not be entitled to receive any notice of any proceedings of
the Company, except as provided herein.

 

Section 11.         Adjustment
of Purchase Price, Number and Kind of Shares or Number of Rights.  The Purchase Price, the number and kind of
shares covered by each Right 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
Preferred Stock into a smaller number of shares, or (D) issue any shares
of its capital stock in a reclassification of the Preferred Stock (including
any such reclassification in connection with a consolidation or merger in which
the Company is the continuing or surviving corporation), except as otherwise
provided in this Section 11(a) and Section 7(e) hereof, the
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, and
the number and kind of shares of Preferred Stock or capital stock, as the case
may be, issuable on such date, shall be proportionately adjusted so that the
holder of any Right exercised after such time shall be entitled to receive,
upon payment of the Purchase Price then in effect, the aggregate number and
kind of shares of Preferred Stock or capital stock, as the case may be, which,
if such Right had been exercised immediately prior to such date and at a time
when the Preferred Stock transfer books of the Company were open, such holder
would have owned upon such exercise and been entitled to receive by virtue of
such dividend, subdivision, combination or reclassification.  If an event occurs that would require an
adjustment under both this Section 11(a)(i) and Section 11(a)(ii) hereof,
the adjustment provided for in this Section 11(a)(i) shall be in
addition to, and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii) hereof.

 

(ii)         In the event any Person shall, at any
time after the Rights Dividend Declaration Date, become an Acquiring Person,
unless the event causing such Person to become an Acquiring Person is a
transaction set forth in Section 13(a) hereof, then, promptly
following the 

 

15

 

occurrence of such
event, proper provision shall be made so that each holder of a Right (except as
provided below and in Section 7(e) hereof) shall thereafter have the
right to receive, upon exercise thereof at the then current Purchase Price in
accordance with the terms of this Agreement, in lieu of a number of one
one-thousandths of a share of Preferred Stock, such number of shares of Common
Stock of the Company as shall equal the result obtained by (x) multiplying
the then current Purchase Price by the then number of one one-thousandths of a
share of Preferred Stock for which a Right was exercisable immediately prior to
the first occurrence of a Section 11(a)(ii) Event, and (y) dividing
that product (which, following such first occurrence, shall thereafter be
referred to as the “Purchase Price” for each Right and for all purposes
of this Agreement) by 50% of the Current Market Price (determined pursuant to Section 11(d) hereof)
per share of Common Stock on the date of such first occurrence (such number of
shares, the “Adjustment Shares”).

 

(iii)  In
the event that the number of shares of Common Stock authorized by the Company’s
Amended and Restated Certificate of Incorporation, but not outstanding or
reserved for issuance for purposes other than upon exercise of the Rights, is
not sufficient to permit the exercise in full of the Rights in accordance with
the foregoing subparagraph (ii) of this Section 11(a), the Company
shall (A) determine the value of the Adjustment Shares issuable upon the
exercise of a Right (the “Current Value”), and (B) with respect to
each Right (subject to Section 7(e) hereof), make adequate provision
to substitute for the Adjustment Shares, upon the exercise of a Right and
payment of the applicable Purchase Price, (1) cash, (2) a reduction
in the Purchase Price, (3) Common Stock or other equity securities of the
Company (including, without limitation, shares, or units of shares, of
preferred stock, such as the Preferred Stock, that the Board of Directors has
deemed to have essentially the same value or economic rights as shares of
Common Stock (such shares of preferred stock being referred to as “Common
Stock Equivalents”)), (4) debt securities of the Company, (5) other
assets, or (6) any combination of the foregoing, having an aggregate value
equal to the Current Value (less the amount of any reduction in the Purchase
Price), where such aggregate value has been determined by the Board of
Directors based upon the advice of a nationally recognized investment banking
firm selected by the Board of Directors; provided, however, that
if the Company shall not have made adequate provision to deliver value pursuant
to clause (B) above within thirty (30) days following the later of (x) the
first occurrence of a Section 11(a)(ii) Event and (y) the date
on which the Company’s right of redemption pursuant to Section 23(a) expires
(the later of (x) and (y) being referred to herein as the “Section 11(a)(ii) Trigger
Date”), then the Company shall be obligated to deliver, upon the surrender
for exercise of a Right and without requiring payment of the Purchase Price,
shares of Common Stock (to the extent available) and then, if necessary, cash,
which shares and/or cash have an aggregate 

 

16

 

value equal to the
Spread.  For purposes of the preceding
sentence, the term “Spread” shall mean the excess of (i) the
Current Value over (ii) the Purchase Price.  If the Board of Directors determines 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, the thirty (30)
day period set forth above may be extended to the extent necessary, but not
more than ninety (90) days after the Section 11(a)(ii) Trigger Date,
in order that the Company may seek stockholder approval for the authorization
of such additional shares (such thirty (30) day period, as it may be extended,
is herein called the “Substitution Period”).  To the extent that the Company determines
that action should be taken pursuant to the first and/or third sentences of
this Section 11(a)(iii), the Company (1) shall provide, subject to Section 7(e) hereof,
that such action shall apply uniformly to all outstanding Rights, and (2) may
suspend the exercisability of the Rights until the expiration of the
Substitution Period in order to seek such stockholder approval for such
authorization of additional shares and/or to decide the appropriate form of
distribution to be made pursuant to such first sentence and to determine the
value thereof.  In the event of any such
suspension, the Company shall issue a public announcement stating that the
exercisability of the Rights has been temporarily suspended, as well as a
public announcement at such time as the suspension is no longer in effect.  For purposes of this Section 11(a)(iii),
the value of each Adjustment Share shall be the Current Market Price per share
of the Common Stock on the Section 11(a)(ii) Trigger Date and the per
share or per unit value of any Common Stock Equivalent shall be deemed to equal
the Current Market Price per share of the Common Stock on such date.

 

(b)       In case the Company shall fix a record
date for the issuance of rights, options or warrants to all holders of
Preferred Stock entitling them to subscribe for or purchase (for a period
expiring within forty-five (45) calendar days after such record date) Preferred
Stock (or shares having the same rights, privileges and preferences as the
shares of Preferred Stock (“Equivalent Preferred Stock”)) or securities
convertible into Preferred Stock or Equivalent Preferred Stock at a price per
share of Preferred Stock or per share of Equivalent Preferred Stock (or having
a conversion price per share, if a security convertible into Preferred Stock or
Equivalent Preferred Stock) less than the Current Market Price (as determined
pursuant to Section 11(d) hereof) per share of Preferred Stock on
such record date, the Purchase Price to be in effect after such record date
shall be determined by multiplying the Purchase Price in effect immediately
prior to such record date by a fraction, the numerator of which shall be the
number of shares of Preferred Stock outstanding on such record date, plus the
number of shares of Preferred Stock that the aggregate offering price of the
total number of shares of Preferred Stock and/or Equivalent Preferred Stock so
to be offered (and/or the aggregate initial conversion price of the convertible
securities so to be offered) would purchase at such Current Market Price, and
the denominator of which shall be the number of shares of Preferred Stock
outstanding on such record date, plus the number of additional shares of
Preferred Stock and/or Equivalent Preferred Stock to be offered for
subscription or purchase (or into which the convertible securities so to be
offered are initially 

 

17

 

convertible).  In case such subscription price may be paid
by delivery of consideration, part or all of which may be in a form other than
cash, the value of such consideration shall be as determined in good faith by the
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
and the holders of the Rights.  Shares of
Preferred Stock owned by or held for the account of the Company shall not be
deemed outstanding for the purpose of any such computation.  Such adjustment shall be made successively
whenever such a record date is fixed, and in the event that such rights or
warrants are not so issued, the Purchase Price shall be adjusted to be the
Purchase Price that would then be in effect if such record date had not been
fixed.

 

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

 

(d)                     (i) For the purpose of any computation
hereunder, other than computations made pursuant to Section 11(a)(iii) hereof,
the “Current Market Price” per share of Common Stock on any date shall
be deemed to be the average of the daily closing prices per share of such
Common Stock for the thirty (30) consecutive Trading Days immediately prior to
such date, and for purposes of computations made pursuant to Section 11(a)(iii) hereof,
the Current Market Price per share of Common Stock on any date shall be deemed
to be the average of the daily closing prices per share of such Common Stock
for the ten (10) consecutive Trading Days immediately following such date;
provided, however, that in the event that the Current Market
Price per share of the Common Stock is determined during a period following the
announcement by the issuer of such Common Stock of (A) a dividend or
distribution on such Common Stock payable in shares of such Common Stock or
securities convertible into shares of such Common Stock (other than the
Rights), or (B) any subdivision, combination or reclassification of such
Common Stock, and the ex-dividend date for such dividend or distribution, or
the 

 

18

 

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

 

(ii)  For the purpose of any computation hereunder,
the Current Market Price per share of Preferred Stock shall be determined in
the same manner as set forth above for the Common Stock in clause (i) of
this Section 11(d) (other than the last sentence thereof).  If the Current Market Price per share of
Preferred Stock cannot be determined in the manner provided above or if the
Preferred Stock is not publicly held or listed or traded in a manner described
in clause (i) of this Section 11(d), the Current Market Price per
share of Preferred Stock shall be conclusively deemed to be an amount equal to
1,000 (as such number may be appropriately adjusted for such events as stock
splits, stock dividends and recapitalizations with respect to the Common Stock
occurring after the date of this Agreement) multiplied by the Current Market
Price per share of the Common Stock.  If
neither the Common Stock nor the Preferred Stock is publicly held or so listed
or traded, Current Market Price per share of the Preferred Stock shall mean the
fair value per share as determined in good faith by the Board of Directors, 

 

19

 

whose determination
shall be described in a statement filed with the Rights Agent and shall be
conclusive for all purposes.

 

(e)                      Anything herein to the contrary
notwithstanding, no adjustment in the Purchase Price shall be required unless
such adjustment would require an increase or decrease of at least one percent
(1%) in the Purchase Price; provided, however, that any
adjustments that by reason of this Section 11(e) are not required to
be made shall be carried forward and taken into account in any subsequent
adjustment.  All calculations under this Section 11
shall be made to the nearest cent or to the nearest ten-thousandth of a share
of Common Stock or other share or one ten-millionth of a share of Preferred
Stock, as the case may be. 
Notwithstanding the first sentence of this Section 11(e), any
adjustment required by this Section 11 shall be made no later than the
earlier of (i) two years from the date of the transaction that mandates
such adjustment, or (ii) the Expiration Date.

 

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

 

(g)                     All Rights originally issued by the
Company subsequent to any adjustment made to the Purchase Price hereunder shall
evidence the right to purchase, at the adjusted Purchase Price, the number of
one one-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 Sections 11(b) and
(c), each Right outstanding immediately prior to the making of such adjustment
shall thereafter evidence the right to purchase, at the adjusted Purchase
Price, that number of one one-thousandths of a share of Preferred Stock
(calculated to the nearest one ten-millionth) obtained by (i) multiplying (x) the
number of one one-thousandths of a share covered by a Right immediately prior
to this adjustment, by (y) the Purchase Price in effect immediately prior
to such adjustment of the Purchase Price, and (ii) dividing the product so
obtained by the Purchase Price in effect immediately after such adjustment of
the Purchase Price.

 

(i)                         The Company may elect on or after
the date of any adjustment of the Purchase Price to adjust the number of
Rights, in lieu of any adjustment in the number of one one-thousandths of a
share of Preferred Stock purchasable upon the exercise of a Right.  Each of the Rights outstanding after the
adjustment in the number of Rights shall be exercisable for the number of one
one-thousandths of a share of Preferred 

 

20

 

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 Rights Certificates have been issued, shall be at least ten (10) days
later than the date of the public announcement. 
If Rights Certificates have been issued, upon each adjustment of the
number of Rights pursuant to this Section 11(i), the Company shall, as
promptly as practicable, cause to be distributed to holders of record of Rights
Certificates on such record date Rights Certificates evidencing, subject to Section 14
hereof, the additional Rights to which such holders shall be entitled as a
result of such adjustment, or, at the option of the Company, shall cause to be
distributed to such holders of record in substitution and replacement for the
Rights Certificates held by such holders prior to the date of adjustment, and
upon surrender thereof, if required by the Company, new Rights Certificates
evidencing all the Rights to which such holders shall be entitled after such
adjustment.  Rights Certificates so to be
distributed shall be issued, executed and countersigned in the manner provided
for herein (and may bear, at the option of the Company, the adjusted Purchase
Price) and shall be registered in the names of the holders of record of Rights
Certificates on the record date specified in the public announcement.

 

(j)                         Irrespective of any adjustment or
change in the Purchase Price or the number of one one-thousandths of a share of
Preferred Stock issuable upon the exercise of the Rights, the Rights
Certificates theretofore and thereafter issued may continue to express the
Purchase Price per one one-thousandth of a share and the number of one
one-thousandths of a share that were expressed in the initial Rights
Certificates issued hereunder.

 

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

 

(l)                         In any case in which this Section 11
shall require that an adjustment in the Purchase Price be made effective as of
a record date for a specified event, the Company may elect to defer until the
occurrence of such event the issuance to the holder of any Right exercised
after such record date the number of one one-thousandths of a share of
Preferred Stock and other capital stock or securities of the Company, if any,
issuable upon such exercise over and above the number of one one-thousandths of
a share of Preferred Stock and other capital stock or securities of the
Company, if any, issuable upon such exercise on the basis of the Purchase Price
in effect 

 

21

 

prior to such
adjustment; provided, however, that the Company shall deliver to
such holder a due bill or other appropriate instrument evidencing such holder’s
right to receive such additional shares (fractional or otherwise) or securities
upon the occurrence of the event requiring such adjustment.

 

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

 

(n)                     The Company covenants and agrees
that it shall not, at any time after the Distribution Date, (i) consolidate
with any other Person (other than a Subsidiary of the Company in a transaction
that complies with Section 11(o) hereof), (ii) merge with or
into any other Person (other than a Subsidiary of the Company in a transaction
that complies with Section 11(o) hereof), or (iii) other than
pursuant to a pro rata dividend and/or distribution to all of the then current
holders of Common Stock, sell or transfer (or permit any Subsidiary to sell or
transfer), in one transaction, or a series of related transactions, assets,
cash flow or earning power aggregating more than fifty percent (50%) of the
assets, cash flow or earning power of the Company and its Subsidiaries (taken
as a whole) to any other Person or Persons (other than the Company and/or any
of its Subsidiaries in one or more transactions each of which complies with Section 11(o) hereof),
if (x) at the time of or immediately after such consolidation, merger or
sale there are any rights, warrants or other instruments or securities
outstanding or agreements in effect that would substantially diminish or
otherwise eliminate the benefits intended to be afforded by the Rights or (y) prior
to, simultaneously with or immediately after such consolidation, merger or
sale, the stockholders of the Person who constitutes, or would constitute, the “Principal
Party” for purposes of Section 13(a) hereof shall have received a
distribution of Rights previously owned by such Person or any of its Affiliates
and Associates.

 

(o)                     The Company covenants and agrees
that, after the Distribution Date, it will not, except as permitted by Section 23,
Section 24 or Section 27 hereof, take (or permit any Subsidiary to
take) any action if at the time such action is taken it is reasonably
foreseeable that such action will diminish substantially or otherwise eliminate
the benefits intended to be afforded by the Rights.

 

(p)                     Anything in this Agreement to the
contrary notwithstanding, in the event that the Company shall at any time after
the Rights Dividend Declaration Date and prior to the Distribution Date (i) declare
a dividend on the outstanding shares of Common Stock payable in shares of
Common Stock, (ii) subdivide the outstanding shares 

 

22

 

of Common Stock, or (iii) combine
the outstanding shares of Common Stock into a smaller number of shares, the
number of Rights associated with each share of Common Stock then outstanding,
or issued or delivered thereafter but prior to the Distribution Date, shall be
proportionately adjusted so that the number of Rights thereafter associated
with each share of 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 denominator of which
shall be the total number of shares of Common Stock outstanding immediately
following the occurrence of such event.

 

Section 12.                          Certificate
of Adjusted Purchase Price or Number of Shares.  Whenever an adjustment is made as provided in
Section 11 and Section 13 hereof, the Company shall (a) promptly
prepare a certificate setting forth such adjustment and a brief statement of
the facts accounting for such adjustment, (b) promptly file with the
Rights Agent, and with each transfer agent for the Preferred Stock and the
Common Stock, a copy of such certificate and (c) if a Distribution Date
has occurred, mail a brief summary thereof to each holder of a Rights
Certificate in accordance with Section 25 hereof.  The Rights Agent shall be fully protected in
relying on any such certificate and on any adjustment therein contained.

 

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

 

(a)                      In the event that, following the
Stock Acquisition Date, directly or indirectly, (x) the Company shall
consolidate with, or merge with and into, any other Person (other than a
Subsidiary of the Company in a transaction that complies with Section 11(o) hereof),
and the Company shall not be the continuing or surviving corporation of such
consolidation or merger, (y) any Person (other than a Subsidiary of the
Company in a transaction that complies with Section 11(o) hereof)
shall consolidate with, or merge with or into, the Company, and the Company
shall be the continuing or surviving corporation of such consolidation or
merger and, in connection with such consolidation or merger, all or part of the
outstanding shares of Common Stock shall be changed into or exchanged for stock
or other securities of any other Person or cash or any other property, or (z) the
Company shall, other than pursuant to pro rata dividend and/or distribution to
all of the then current holders of Common Stock, sell or otherwise transfer (or
one or more of its Subsidiaries shall sell or otherwise transfer), in one
transaction or a series of related transactions, assets, cash flow or earning
power aggregating more than fifty percent (50%) of the assets, cash flow or
earning power of the Company and its Subsidiaries (taken as a whole) to any
Person or Persons (other than the Company or any Subsidiary of the Company in
one or more transactions each of which complies with Section 11(o) hereof),
then, and in each such case, proper provision shall be made so that: (i) each
holder of a Right, except as provided in Section 7(e) hereof, shall
thereafter have the right to receive, upon the exercise thereof at the then
current Purchase Price in accordance with the terms of this Agreement, such
number of validly authorized and issued, fully paid, non-assessable and freely
tradable shares of Common Stock of the Principal Party (as such term is hereinafter
defined), not subject to any liens, 

 

23

 

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 is
exercisable immediately prior to the first occurrence of a Section 13
Event (or, if a Section 11(a)(ii) Event has occurred prior to the
first occurrence of a Section 13 Event, multiplying the number of such one
one-thousandths of a share for which a Right was exercisable immediately prior
to the first occurrence of a Section 11(a)(ii) Event by the Purchase
Price in effect immediately prior to such first occurrence of a Section 11(a)(ii) Event),
and (2) dividing that product (which, following the first occurrence of a Section 13
Event, shall be referred to as the “Purchase Price” for each Right and
for all purposes of this Agreement) by 50% of the Current Market Price
(determined pursuant to Section 11(d)(i) hereof) per share of the
Common Stock of such Principal Party on the date of consummation of such Section 13
Event; (ii) such Principal Party shall thereafter be liable for, and shall
assume, by virtue of such Section 13 Event, all the obligations and duties
of the Company pursuant to this Agreement; (iii) the term “Company”
shall thereafter be deemed to refer to such Principal Party, it being
specifically intended that the provisions of Section 11 hereof shall apply
only to such Principal Party following the first occurrence of a Section 13
Event; (iv) such Principal Party shall take such steps (including, but not
limited to, the reservation of a sufficient number of shares of its Common
Stock) in connection with the consummation of any such transaction as may be
necessary to assure that the provisions hereof shall thereafter be applicable,
as nearly as reasonably may be, in relation to its shares of Common Stock
thereafter deliverable upon the exercise of the Rights; and (v) the
provisions of Section 11(a)(ii) hereof shall be of no effect
following the first occurrence of any Section 13 Event.

 

(b)                     “Principal Party” shall mean:

 

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

 

(ii)   
in the case of any transaction described in clause (z) of the first
sentence of Section 13(a), the Person that is the party receiving the
greatest portion of the assets, cash flow or earning power transferred pursuant
to such transaction or transactions;

 

provided,
however, that in any such case, (1) if the Common Stock of such
Person is not at such time and has not been continuously over the preceding
twelve (12) month period registered under Section 12 of the Exchange Act,
and such Person is a direct or indirect Subsidiary of another Person the Common
Stock of which is and has been so registered, “Principal Party” shall
refer to such other Person; and (2) in case such Person is a Subsidiary,
directly or indirectly, of more than one Person, the Common Stock of two or
more of which are and have been so registered, “Principal Party” shall
refer to whichever 

 

24

 

of such
Persons is the issuer of the Common Stock having the greatest aggregate market
value.

 

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

 

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

 

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

 

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

 

The provisions
of this Section 13 shall similarly apply to successive mergers or
consolidations or sales or other transfers. 
In the event that a Section 13 Event shall occur at any time after
the occurrence of a Section 11(a)(ii) Event, the Rights that have not
theretofore been exercised shall thereafter become exercisable in the manner
described in Section 13(a).

 

Section 14.                          Fractional
Rights and Fractional Shares.

 

(a)                      The Company shall not be required to
issue fractions of Rights, except prior to the Distribution Date as provided in
Section 11(p) hereof, or to distribute Rights Certificates that
evidence fractional Rights.  In lieu of
such fractional Rights, the Company shall pay to the registered holders of the
Rights Certificates with regard to which such fractional Rights would otherwise
be issuable, an amount in cash equal to the same fraction of the current market
value of a whole Right.  For purposes of
this Section 14(a), the current market value of a whole Right shall be the
closing price of 

 

25

 

the Rights for the
Trading Day immediately prior to the date on which such fractional Rights would
have been otherwise issuable.  The
closing price of the Rights for any day shall be the last sale price, regular
way, or, in case no such sale takes place on such day, the average of the
closing bid and asked prices, regular way, in either case as reported in the
principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on NASDAQ or, if the Rights are not listed or
admitted to trading on NASDAQ, as reported in the principal consolidated
transaction reporting system with respect to securities listed on the principal
national securities exchange on which the Rights are listed or admitted to
trading, or if the Rights are not listed or admitted to trading on any national
securities exchange, the last quoted price or, if not so quoted, the average of
the high bid and low asked prices in the over-the-counter market, as reported
by NASDAQ or such other system then in use or, if on any such date the Rights
are not quoted by any such organization, the average of the closing bid and
asked prices as furnished by a professional market maker making a market in the
Rights, selected by the Board 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 that are
integral multiples of one one-thousandth of a share of Preferred Stock) upon
exercise of the Rights or to distribute certificates that evidence fractional
shares of Preferred Stock (other than fractions that are integral multiples of
one one-thousandth of a share of Preferred Stock).  In lieu of fractional shares of Preferred
Stock that are not integral multiples of one one-thousandth of a share of
Preferred Stock, the Company may pay to the registered holders of Rights
Certificates at the time such Rights are exercised as herein provided an amount
in cash equal to the same fraction of the current market value of one
one-thousandth of a share of Preferred Stock. 
For purposes of this Section 14(b), the current market value of one
one-thousandth of a share of Preferred Stock shall be one one-thousandth of the
closing price of a share of Preferred Stock (as determined pursuant to Section 11(d)(ii) hereof)
for the Trading Day immediately prior to the date of such exercise.

 

(c)                      Following the occurrence of a
Triggering Event, the Company shall not be required to issue fractions of
shares of Common Stock upon exercise of the Rights or to distribute
certificates that evidence fractional shares of Common Stock.  In lieu of fractional shares of Common Stock,
the Company may pay to the registered holders of Rights Certificates at the
time such Rights are exercised as herein provided an amount in cash equal to
the same fraction of the current market value of one (1) share of Common
Stock.  For purposes of this Section 14(c),
the current market value of one share of Common Stock shall be the closing
price per share of Common Stock (as determined pursuant to Section 11(d)(i) hereof)
on the Trading Day immediately prior to the date of such exercise.

 

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

 

26

 

Section 15.                          Rights
of Action.  All rights of action in
respect of this Agreement are vested in the respective registered holders of
the Rights Certificates (and, prior to the Distribution Date, the registered
holders of the Common Stock); and any registered holder of any Rights
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 Rights
Certificate (or, prior to the Distribution Date, of the Common Stock), may, in
the holder’s own behalf and for the holder’s own benefit, enforce, and may
institute and maintain any suit, action or proceeding against the Company to
enforce, or otherwise act in respect of, the holder’s right to exercise the
Rights evidenced by such Rights Certificate in the manner provided in such
Rights Certificate and in this Agreement. 
Without limiting the foregoing or any remedies available to the holders
of Rights, it is specifically acknowledged that the holders of Rights would not
have an adequate remedy at law for any breach of this Agreement and shall be
entitled to specific performance of the obligations hereunder and injunctive
relief against actual or threatened violations of the obligations hereunder of
any Person subject to this Agreement.

 

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

 

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

 

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

 

(c)                      subject to Section 6(a) and
Section 7(f) hereof, the Company and the Rights Agent may deem and
treat the person in whose name a Rights Certificate (or, prior to the
Distribution Date, the associated balance indicated in the book-entry account
system of the transfer agent for the Common Stock or, in the case of
certificated shares, the associated Common Stock certificate) is registered as
the absolute owner thereof and of the Rights evidenced thereby (notwithstanding
any notations of ownership or writing on the Rights Certificates or the
associated balance indicated in the book-entry account system of the transfer
agent for the Common Stock or, in the case of certificated shares, the
associated 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 the last sentence of Section 7(e) hereof,
shall be required to be affected by any notice to the contrary; and

 

(d)                     notwithstanding anything in this
Agreement to the contrary, neither the Company nor the Rights Agent shall have
any liability to any holder of a Right or other Person as a result of its
inability to perform any of its obligations under this Agreement by reason of
any preliminary or permanent injunction or other order, decree or ruling issued
by a court of competent jurisdiction or by a governmental,

 

27

 

regulatory or administrative agency or
commission, or any statute, rule, regulation or executive order promulgated or
enacted by any governmental authority, prohibiting or otherwise restraining
performance of such obligation; provided, however, the Company
must use its best efforts to have any such order, decree or ruling lifted or
otherwise overturned as soon as possible.

 

Section 17.                          Rights
Certificate Holder Not Deemed a Stockholder.  No holder, as such, of any Rights Certificate
shall be entitled to vote, receive dividends or be deemed for any purpose the
holder of the number of one one-thousandths of a share of Preferred Stock or
any other securities of the Company that may at any time be issuable on the
exercise of the Rights represented thereby, nor shall anything contained herein
or in any Rights Certificate be construed to confer upon the holder of any
Rights Certificate, as such, any of the rights of a stockholder of the Company
or any right to vote for the election of directors or upon any matter submitted
to stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting
stockholders (except as provided in Section 25 hereof), or to receive
dividends or subscription rights, or otherwise, until the Right or Rights
evidenced by such Rights Certificate shall have been exercised in accordance
with the provisions hereof.

 

Section 18.                          Concerning
the Rights Agent.

 

(a)                      The Company agrees to pay to the
Rights Agent reasonable compensation for all services rendered by it hereunder
and, from time to time, on demand of the Rights Agent, its reasonable expenses
and counsel fees and disbursements and other disbursements incurred in the
administration and execution of this Agreement and the exercise and performance
of its duties hereunder.  The Company
also agrees to indemnify the Rights Agent for, and to hold it harmless against,
any loss, liability, or expense, incurred without gross negligence, bad faith
or willful 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 Agreement or the performance of the Rights Agent’s
duties hereunder, including the costs and expenses of defending against any
claim of liability in the premises.

 

(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 Agreement or the
performance of the Rights Agent’s duties hereunder in reliance upon any Rights
Certificate or the balance indicated in the book-entry account system of the
transfer agent for the Common Stock or, in the case of certificated shares,
certificate for 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
believed by it to be genuine and to be signed, executed and, where necessary,
verified or acknowledged, by the proper Person or Persons.

 

28

 

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

 

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

 

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

 

Section 20.                          Duties
of Rights Agent.  The Rights Agent
undertakes the duties and obligations imposed by this Agreement upon the
following terms and conditions, by all of which the Company and the holders of
Rights Certificates, by their acceptance thereof, shall be bound:

 

(a)                      The Rights Agent may consult with
legal counsel (who may be legal counsel for the Company), and the advice or
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 advice or opinion.

 

(b)                     Whenever in the performance of its
duties under this Agreement the Rights Agent shall deem it necessary or
desirable that any fact or matter (including, without limitation, the identity
of any Acquiring Person and the determination of Current Market Price) be
proved or established by the Company prior to taking 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 the Chief Executive Officer, the
President, the Chief Financial Officer, any Vice President, the Treasurer, any
Assistant Treasurer, the Secretary or any Assistant Secretary of the Company
and delivered to the Rights Agent; and such certificate shall be full
authorization to the Rights Agent for any action taken or 

 

29

 

suffered in good faith by it under the
provisions of this Agreement in reliance upon such certificate.

 

(c)                      The Rights Agent shall be liable
hereunder only for its own negligence, bad faith or willful 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
Agreement or in the Rights Certificates or be required to verify the same
(except as to its countersignature on such Rights Certificates), but all such
statements and recitals are and shall be deemed to have been made by the
Company only.

 

(e)                      The Rights Agent shall not be under
any responsibility in respect of the validity of this Agreement or the
execution and delivery hereof (except the due execution hereof by the Rights
Agent) or in respect of the validity or execution of any Rights Certificate
(except its countersignature thereof); nor shall it be responsible for any
breach by the Company of any covenant or condition contained in this Agreement
or in any Rights Certificate; nor shall it be responsible for any adjustment
required under the provisions of Section 11, Section 13 or Section 24
hereof or responsible for the manner, method or amount of any such adjustment
or the ascertaining of the existence of facts that would require any such
adjustment (except with respect to the exercise of Rights evidenced by Rights
Certificates after actual notice of any such adjustment); nor shall it by any
act hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any shares of Common Stock or Preferred Stock
to be issued pursuant to this Agreement or any Rights Certificate or as to
whether any shares of Common Stock or Preferred Stock will, when so issued, be
validly authorized and issued, fully paid and nonassessable.

 

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

 

(g)                     The Rights Agent is hereby
authorized and directed to accept instructions with respect to the performance
of its duties hereunder from the Chief Executive Officer, the President, the
Chief Financial Officer, any Vice President, the Treasurer, any Assistant
Treasurer, the Secretary or any Assistant Secretary of the Company, and to
apply to such officers for advice or instructions in connection with its
duties, and it shall not be liable for any action taken or suffered to be taken
by it in good faith in accordance with instructions of any such officer.

 

(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 Agreement.  

 

30

 

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
Company resulting from any such act, default, neglect or misconduct; provided,
however, reasonable care was exercised in the selection and continued
employment thereof.

 

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

 

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

 

Section 21.                          Change
of Rights Agent.  The Rights Agent or
any successor Rights Agent may resign and be discharged from its duties under
this Agreement upon thirty (30) days’ notice in writing mailed to the Company,
and to each transfer agent of the Common Stock and Preferred Stock, by
registered or certified mail, and, if such resignation occurs after the
Distribution Date, to the registered holders of the Rights Certificates by
first-class mail.  The Company may remove
the Rights Agent or any successor Rights Agent upon thirty (30) days’ notice in
writing, mailed to the Rights Agent or successor Rights Agent, as the case may
be, and to each transfer agent of the Common Stock and Preferred Stock, by
registered or certified mail, and, if such removal occurs after the
Distribution Date, to the holders of the Rights Certificates by first-class
mail.  If the Rights Agent shall resign
or be removed or shall otherwise become incapable of acting, the Company shall
appoint a successor to the Rights Agent. 
If the Company shall fail to make such appointment within a period of
thirty (30) days after giving notice of such removal or after it has been
notified in writing of such resignation or incapacity by the resigning or
incapacitated Rights Agent or by the holder of a Rights Certificate (who shall,
with such notice, submit his Rights Certificate for inspection by the Company),
then any registered holder of any Rights Certificate may apply to any 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 legal business entity
organized and doing business under the laws of the United States or any State
thereof, in good standing, having an 
office in the State of New York, that is authorized under such laws to
exercise corporate trust, stock transfer or stockholder services powers and
that has at the time of its appointment as Rights Agent a combined 

 

31

 

capital and surplus of at least $                 or
(b) an affiliate of a legal business entity 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 and the Preferred Stock, and, if such appointment occurs
after the Distribution Date, mail a notice thereof in writing to the registered
holders of the Rights Certificates. 
Failure to give any notice provided for in this Section 21,
however, or any defect therein, shall not affect the legality or validity of
the resignation or removal of the Rights Agent or the appointment of the
successor Rights Agent, as the case may be.

 

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

 

Section 23.                          Redemption and Termination.

 

(a)                      The Board of Directors of the
Company may, at its option, at any time prior to the earlier of (i) the
close of business on the tenth Business Day (or such specified or unspecified
later date as may be determined by the Board of Directors before the Rights
cease to be redeemable) following the Stock Acquisition Date (or, if the Stock
Acquisition Date shall have occurred prior to the Record Date, the close of
business on the tenth Business Day following the Record Date), or (ii) the
Final Expiration Date, (x) redeem all but not less than all of the then
outstanding Rights at a redemption price of $0.001 per Right, as such amount
may be appropriately adjusted to reflect any stock split, stock dividend or similar
transaction occurring after the date hereof (such redemption 

 

32

 

price being hereinafter referred to as the “Redemption
Price”) or (y) amend this Agreement to change the Final Expiration
Date to another date, including without limitation an earlier date.  Notwithstanding anything contained in this
Agreement to the contrary, the Rights shall not be exercisable after the first
occurrence of a Section 11(a)(ii) Event until such time as the
Company’s right of redemption hereunder has expired.  The Company may, at its option, pay the
Redemption Price in cash, shares of Common Stock (based on the Current Market
Price, as defined in Section 11(d)(i) hereof, of the Common Stock at
the time of redemption) or any other form of consideration deemed appropriate
by the Board of Directors.  The
redemption of the Rights by action of the Board of Directors 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.

 

(b)                     Immediately upon the effectiveness
of the action of the Board of Directors of the Company ordering the redemption
of the Rights (or, if the resolution of the Board of Directors electing to
redeem the Rights states that the redemption will not be effective until the
occurrence of a specified future time or event, upon the occurrence of such
future time or event), and without any further action and without any notice,
the right to exercise the Rights will terminate and the only right thereafter
of the holders of Rights shall be to receive the Redemption Price for each
Right so held.  The Company shall
promptly give notice of any such redemption to the Rights Agent and the holders
of the then outstanding Rights by mailing such notice to all such holders at
each holder’s last address as it appears upon the registry books of the Rights
Agent or, prior to the Distribution Date, on the registry books of the transfer
agent for the Common Stock; provided, however, that the failure
to give, or any defect in, any such notice shall not affect the validity of
such redemption.  Any notice that is
mailed in the manner herein provided shall be deemed given, whether or not the
holder receives the notice. Each such notice of redemption will state the
method by which the payment of the Redemption Price will be made.

 

Section 24.                          Exchange.

 

(a)                      The Board of Directors of the
Company may, at its option, at any time after any Person becomes an Acquiring
Person, exchange all or part of the then outstanding and exercisable Rights
(which shall not include Rights that have become void pursuant to the
provisions of Section 7(e) hereof) for 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 exchange ratio 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 any Person (other than the Company, any
Subsidiary of the Company, any employee benefit plan of the Company or any such
Subsidiary or any entity holding Common Stock for or pursuant to the terms of
any such plan), together with all Affiliates and Associates of such Person,
becomes the Beneficial Owner of fifty percent (50%) or more of the Common Stock
then outstanding.

 

(b)                     Immediately upon the action of the
Board of Directors of the Company ordering the exchange of any Rights pursuant
to subsection (a) of this Section 24 

 

33

 

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 promptly shall mail a notice of any such exchange to all of
the holders of such Rights at their last addresses as they appear upon the
registry books of the Rights Agent.  Any
notice that 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 Common Stock for Rights will be effected and, in the event of any
partial exchange, the number of Rights that will be exchanged.  Any partial exchange shall be effected pro
rata based on the number of Rights (other than Rights that have become void pursuant
to the provisions of Section 7(e) hereof) held by each holder of
Rights.

 

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

 

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

 

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

 

Section 25.                          Notice
of Certain Events.

 

(a)                      In case the Company shall propose,
at any time after the Distribution Date, (i) to pay any dividend payable
in stock of any class to the holders of Preferred Stock or to make any other
distribution to the holders of Preferred Stock (other than a regular quarterly
cash dividend out of earnings or retained earnings of the Company), or (ii) to
offer to the holders of Preferred Stock rights or warrants to subscribe 

 

34

 

for or to purchase any additional shares of
Preferred Stock or shares of stock of any class or any other securities, rights
or options, or (iii) to effect any reclassification of its Preferred Stock
(other than a reclassification involving only the subdivision of outstanding
shares of Preferred Stock), or (iv) to effect any consolidation or merger
into or with any other Person (other than a Subsidiary of the Company in a
transaction that complies with Section 11(o) hereof), or, other than
pursuant to a pro rata dividend and/or distribution to all of the then current
holders of Common Stock, to effect any sale or other transfer (or to permit one
or more of its Subsidiaries to effect any sale or other transfer), in one
transaction or a series of related transactions, of more than 50% of the
assets, cash flow or earning power of the Company and its Subsidiaries (taken
as a whole) to any other Person or Persons (other than the Company and/or any
of its Subsidiaries in one or more transactions each of which complies with Section 11(o) hereof),
or (v) to effect the liquidation, dissolution or winding up of the
Company, then, in each such case, the Company shall give to each holder of a
Rights Certificate, to the extent feasible and in accordance with Section 26
hereof, a notice of such proposed action, that shall specify the record date
for the purposes of such stock dividend, distribution of rights or warrants, or
the date on which such reclassification, consolidation, merger, sale, transfer,
liquidation, dissolution, or winding up is to take place and the date of
participation therein by the holders of the shares of Preferred Stock, if any
such date is to be fixed, and such notice shall be so given in the case of any
action covered by clause (i) or (ii) above at least twenty (20) days
prior to the record date for determining holders of the shares of Preferred
Stock for purposes of such action, and in the case of any such other action, at
least twenty (20) days prior to the date of the taking of such proposed action
or the date of participation therein by the holders of the shares of Preferred
Stock, whichever shall be the earlier.

 

(b)                     In case any of the events set forth
in Section 11(a)(ii) hereof shall occur, then, in any such case, (i) the
Company shall as soon as practicable thereafter give to each holder of a Rights
Certificate, to the extent feasible and in accordance with Section 26
hereof, a notice of the occurrence of such event, which shall specify the event
and the consequences of the event to holders of Rights under Section 11(a)(ii) hereof,
and (ii) all references in the preceding paragraph to Preferred Stock
shall be deemed thereafter to refer to Common Stock and/or, if appropriate,
other securities.

 

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

 

Celera Corporation

1401 Harbor Bay Parkway

Alameda, California  94502

Attention:  Corporate Secretary

 

Subject to the provisions of Section 21,
any notice or demand authorized by this Agreement to be given or made by the
Company or by the holder of any Rights 

 

35

 

Certificate to
or on the Rights Agent shall be sufficiently given or made if sent by
first-class mail, postage prepaid, addressed (until another address is filed in
writing by the Rights Agent with the Company) as follows:

 

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

 

Section 27.                          Supplements
and Amendments.  Prior to the
Distribution Date, the Company and the Rights Agent shall, if the Company so
directs, supplement or amend any provision of this Agreement without the
approval of any holders of shares of Common Stock.  From and after the Distribution Date, the
Company and the Rights Agent shall, if the Company so directs, supplement or
amend this Agreement without the approval of any holders of Rights Certificates
in order (i) to cure any ambiguity, (ii) to correct or supplement any
provision contained herein that may be defective or inconsistent with any other
provisions herein, (iii) to shorten or lengthen any time period hereunder
or (iv) to change or supplement the provisions hereunder in any manner
that the Company may deem necessary or desirable and that shall not adversely
affect the interests of the holders of Rights Certificates (other than an
Acquiring Person or an Affiliate or Associate of an Acquiring Person); provided,
this Agreement may not be supplemented or amended to lengthen, pursuant to
clause (iii) of this sentence (A) a time period relating to when the
Rights may be redeemed at such time as the Rights are not then redeemable, or (B) any
other time period unless such lengthening is for the purpose of protecting,
enhancing or clarifying the rights of, and/or the benefits to the holders of
the Rights (other than an Acquiring Person or an Affiliate or Associate of an
Acquiring Person).  Upon the delivery of
a certificate from an appropriate officer of the Company that states that the
proposed supplement or amendment is in compliance with the terms of this Section 27,
the Rights Agent shall execute such supplement or amendment.  Prior to the Distribution Date, the interests
of the holders of Rights shall be deemed coincident with the interests of the
holder of Common Stock.  Notwithstanding
anything herein to the contrary, this Agreement may not be amended (other than
pursuant to clauses (i) or (ii) of the first sentence of this Section 27)
at a time when the Rights are not redeemable.

 

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

 

36

 

Section 29.                          Determinations
and Actions by the Board of Directors, etc.

 

(a)                      For all purposes of this Agreement,
any calculation of the number of shares of Common Stock or any other class of
capital stock outstanding at any particular time, including for purposes of
determining the particular percentage of such outstanding shares of Common
Stock of which any Person is the Beneficial Owner, shall be made in accordance
with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and
Regulations under the Exchange Act.

 

(b)                     The Board of Directors of the
Company shall have the exclusive power and authority to administer this
Agreement and to exercise all rights and powers specifically granted to the
Board of Directors or to the Company, or as may be necessary or advisable in the
administration of this Agreement, including, without limitation, the right and
power to (i) interpret the provisions of this Agreement, and (ii) make
all determinations deemed necessary or advisable for the administration of this
Agreement (including a determination to redeem or not redeem the Rights or to
amend the Agreement).  All such actions,
calculations, interpretations and determinations (including, for purposes of
clause (y) below, all omissions with respect to the foregoing) that are
done or made by the Board of Directors in good faith, shall (x) be final,
conclusive and binding on the Company, the Rights Agent, the holders of the
Rights and all other parties, and (y) not subject the Board of Directors,
or any of the directors on the Board of Directors, to any liability to the
holders of the Rights.

 

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

 

Section 31.                          Severability.  If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Agreement shall remain in
full force and effect and shall in no way be affected, impaired or invalidated;
provided, however, that notwithstanding anything in this
Agreement to the contrary, if any such term, provision, covenant or restriction
is held by such court or authority to be invalid, void or unenforceable and the
Board of Directors of the Company determines in its good faith judgment that
severing the invalid language from this Agreement would adversely affect the
purpose or effect of this Agreement, the right of redemption set forth in Section 23
hereof shall be reinstated and shall not expire until the close of business on
the tenth (10th) Business Day following the date of such determination by the
Board of Directors.  Without limiting the
foregoing, if any provision requiring a specific group of directors to act is
held to by any court of competent jurisdiction or other authority to be
invalid, void or unenforceable, such determination shall then be made by the
Board of Directors of the Company in accordance with 

 

37

 

applicable law and the Company’s Amended and Restated Certificate of
Incorporation and Amended and Restated By-laws.

 

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

 

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

 

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

 

38

 

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

 

 

	
  Attest:

  	
  CELERA CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
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39

 

Exhibit A

 

FORM OF

CERTIFICATE OF DESIGNATION, PREFERENCES AND

RIGHTS OF SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

 

OF

 

Celera Corporation

 

Pursuant to Section 151 of
the General Corporation Law

of the State of Delaware

 

We,                    ,
President and Chief Executive Officer, and                 ,
Secretary, of Celera Corporation (hereinafter called the “Corporation”),
a corporation organized and existing under the General Corporation Law of the
State of Delaware, in accordance with the provisions of Section 103
thereof, DO HEREBY CERTIFY:

 

That pursuant to the authority conferred upon
the Board of Directors by the Amended and Restated Certificate of Incorporation
of the Corporation, the Board of Directors on ·, 2008, adopted the
following resolution establishing the terms of a series of shares of Preferred
Stock designated as Series A Junior Participating Preferred Stock (none of
which were outstanding at such time):

 

RESOLVED, that pursuant to the authority
vested in the Board of Directors in accordance with the provisions of the
Corporation’s Amended and Restated Certificate of Incorporation, the Board of
Directors does hereby create, authorize and provide for the issuance, upon the
exercise of the Rights, of the Series A Junior Participating Preferred
Stock, having the designation and relative rights, preferences and limitations
that are set forth in the Certificate of Designation concerning the Series A
Junior Participating Preferred Stock, substantially in the form attached as Exhibit A
to the Rights Agreement, which Certificate of Designation is hereby approved

 

The designation and amount thereof and the
voting powers, preferences and relative, participating, optional and other
special rights of the shares of such series, and the qualifications,
limitations or restrictions thereof are hereby fixed as follows:

 

Section 1.                                            Designation
and Amount.  The shares of such
series shall be designated as “Series A Junior Participating Preferred Stock” and
the number of shares constituting such series shall be                   .

 

A-1

 

Section 2.                                            Dividends
and Distributions.

 

(A)                              Subject to the prior and superior
rights of the holders of any shares of any series of Preferred Stock ranking
prior and superior to the shares of Series A Junior Participating
Preferred Stock with respect to dividends, the holders of shares of Series A
Junior Participating Preferred Stock shall be entitled to receive, when, as and
if declared by the Board of Directors out of funds legally available for the
purpose, quarterly dividends payable in cash on the fifteenth (15th) day of
March, June, September, and December in each year (each such date being
referred to herein as a “Quarterly Dividend Payment Date”), commencing
on the first Quarterly Dividend Payment Date after the first issuance of a
share or fraction of a share of Series A Junior Participating Preferred
Stock, in an amount per share (rounded to the nearest cent) equal to the
greater of (a) $0.10 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 or a subdivision of the outstanding shares of Common
Stock (by reclassification or otherwise), declared on the Common Stock, par
value $0.01 per share, of the Corporation (the “Common Stock”) since the
immediately preceding Quarterly Dividend Payment Date, or, with respect to the
first Quarterly Dividend Payment Date, since the first issuance of any share or
fraction of a share of Series A Junior Participating Preferred Stock.  In the event the Corporation shall at any
time after ·, 2008 (the “Rights Dividend
Declaration Date”) (i) declare any dividend on Common Stock payable in
shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine
the outstanding Common Stock into a smaller number of shares, then in each such
case the amount to which holders of shares of Series A Junior
Participating Preferred Stock were entitled immediately prior to such event
under clause (b) of the preceding sentence shall be adjusted by
multiplying such amount by a fraction the numerator of which is the number of
shares of 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 Corporation shall declare a
dividend or distribution on the Series A Junior Participating Preferred
Stock as provided in Paragraph (A) above 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 Quarterly Dividend Payment Date and the next subsequent Quarterly
Dividend Payment Date, a dividend of $0.10 per share on the Series A
Junior Participating Preferred Stock shall 

 

A-2

 

nevertheless be
payable on such subsequent Quarterly Dividend Payment Date.

 

(C)                                Dividends shall begin to accrue and
be cumulative on outstanding shares of Series A Junior Participating
Preferred Stock from the Quarterly Dividend Payment Date next preceding the
date of issue of such shares of Series A Junior Participating Preferred
Stock, unless the date of issue of such shares is prior to the record date for
the first Quarterly Dividend Payment Date, in which case dividends on such
shares shall begin to accrue from the date of issue of such shares, or unless
the date of issue is a Quarterly Dividend Payment Date or is a date after the
record date for the determination of holders of shares of Series A Junior
Participating Preferred Stock entitled to receive a quarterly dividend and
before such Quarterly Dividend Payment Date, in either of which events such
dividends shall begin to accrue and be cumulative from such Quarterly Dividend
Payment Date.  Accrued but unpaid
dividends shall not bear interest. 
Dividends paid on the shares of Series A Junior Participating
Preferred Stock in an amount less than the total amount of such dividends at
the time accrued and payable on such shares shall be allocated pro rata on a
share-by-share basis among all such shares at the time outstanding.  The Board of Directors may fix a record date
for the determination of holders of shares of Series A Junior
Participating Preferred Stock entitled to receive payment of a dividend or
distribution declared thereon, which record date shall be no more than 30 days
prior to the date fixed for the payment thereof.

 

Section 3.                                            Voting
Rights.  The holders of shares of Series A
Junior Participating Preferred Stock shall have the following voting rights:

 

(A)                              Subject to the provision for
adjustment hereinafter set forth, each share of Series A Junior
Participating Preferred Stock shall entitle the holder thereof to 1,000 votes
on all matters submitted to a vote of the stockholders of the Corporation.  In the event the Corporation shall at any
time after the Rights Dividend Declaration Date (i) declare any dividend
on Common Stock payable in shares of Common Stock, (ii) subdivide the
outstanding Common Stock, or (iii) combine the outstanding Common Stock
into a smaller number of shares, then in each such case the number of votes per
share to which holders of shares of Series A Junior Participating
Preferred Stock were entitled immediately prior to such event shall be adjusted
by multiplying such number by a fraction the numerator of which is the number
of shares of 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
or by law, the holders of shares of Series A Junior Participating
Preferred 

 

A-3

 

Stock and the holders
of shares of Common Stock shall vote together as one class on all matters
submitted to a vote of stockholders of the Corporation.

 

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

 

(ii) During
any default period, such voting right of the holders of Series A Junior
Participating Preferred Stock may be exercised initially at a special meeting
called pursuant to subparagraph (iii) of this Section 3(C) or at
any annual meeting of stockholders, and thereafter at annual meetings of
stockholders, provided that neither such voting right nor the right of
the holders of any other series of Preferred Stock, if any, to increase, in
certain cases, the authorized number of directors shall be exercised unless the
holders of ten percent (10%) in number of shares of Preferred Stock outstanding
shall be present in person or by proxy. 
The absence of a quorum of the holders of Common Stock shall not affect
the exercise by the holders of Preferred Stock of such voting right.  At any meeting at which the holders of
Preferred Stock shall exercise such voting right initially during an existing
default period, they shall have the right, voting as a class, to elect
directors to fill such vacancies, if any, in the Board of Directors as may then
exist up to two (2) directors or, if such right is exercised at an annual
meeting, to elect two (2) directors. 
If the number that may be so elected at any special meeting does not
amount to the required number, the holders of the Preferred Stock shall have
the right to make such increase in the number of directors as shall be
necessary to permit the election by them of the required number.  After the holders of the Preferred Stock
shall have exercised their right to elect directors in any default period and
during the continuance of such period, the number of directors shall not be
increased or decreased except by vote of the holders of Preferred Stock as
herein provided or pursuant to the rights of any equity securities ranking
senior to or pari  passu with the Series A Junior
Participating Preferred Stock.

 

A-4

 

(iii) Unless
the holders of Preferred Stock shall, during an existing default period, have
previously exercised their right to elect directors, the Board of Directors may
order, or any stockholder or stockholders owning in the aggregate not less than
ten percent (10%) of the total number of shares of Preferred Stock outstanding,
irrespective of series, may request, the calling of a special meeting of the
holders of Preferred Stock, which meeting shall thereupon be called by the
President, a Vice President or the Secretary of the Corporation.  Notice of such meeting and of any annual
meeting at which holders of Preferred Stock are entitled to vote pursuant to
this Paragraph (C)(iii) shall be given to each holder of record of
Preferred Stock by mailing a copy of such notice to him at his last address as
the same appears on the books of the Corporation.  Such meeting shall be called for a time not
earlier than twenty (20) days and not later than sixty (60) days after such
order or request or in default of the calling of such meeting within sixty (60)
days after such order or request, such meeting may be called on similar notice
by any stockholder or stockholders owning in the aggregate not less than ten
percent (10%) of the total number of shares of Preferred Stock
outstanding.  Notwithstanding the
provisions of this Paragraph (C)(iii), no such special meeting shall be called
during the period within sixty (60) days immediately preceding the date fixed
for the next annual meeting of the stockholders.

 

(iv) In
any default period, the holders of Common Stock, and other classes of stock of
the Corporation if applicable, shall continue to be entitled to elect the whole
number of directors until the holders of Preferred Stock shall have exercised
their right to elect two (2) directors voting as a class, after the
exercise of which right (x) the directors so elected by the holders of
Preferred Stock shall continue in office until their successors shall have been
elected by such holders or until the expiration of the default period, and (y) any
vacancy in the Board of Directors may (except as provided in Paragraph (C)(ii) of
this Section 3) be filled by vote of a majority of the remaining directors
theretofore elected by the holders of the class of stock that elected the
director whose office shall have become vacant. 
References in this Paragraph (C) to directors elected by the
holders of a particular class of stock shall include directors elected by such
directors to fill vacancies as provided in clause (y) of the foregoing
sentence.

 

(v) Immediately
upon the expiration of a default period, (x) the right of the holders of
Preferred Stock as a class to elect directors shall cease, (y) the term of
any directors elected by the holders of Preferred Stock as a class shall
terminate, and (z) the number of directors shall be such number as may be
provided for in the certificate of incorporation or by-laws irrespective 

 

A-5

 

of any increase made pursuant to the
provisions of Paragraph (C)(ii) of this Section 3 (such number being
subject, however, to change thereafter in any manner provided by law or in the
certificate of incorporation or by-laws). 
Any vacancies in the Board of Directors effected by the provisions of
clauses (y) and (z) in the preceding sentence may be filled by a
majority of the remaining directors.

 

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

 

Section 4.                                            Certain
Restrictions.

 

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

 

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

 

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

 

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

 

A-6

 

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

 

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

 

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

 

Section 6.                                            Liquidation,
Dissolution or Winding Up.

 

(A)                              Upon any liquidation (voluntary or
otherwise), dissolution or winding up of the Corporation, no distribution shall
be made to the holders of shares of stock ranking junior (either as to
dividends or upon liquidation, dissolution or winding up) to the Series A
Junior Participating Preferred Stock unless, prior thereto, the holders of
shares of Series A Junior Participating Preferred Stock shall have
received an amount equal to $1,000 per share of Series A Junior
Participating Preferred Stock, plus an amount equal to accrued and unpaid
dividends and distributions thereon, whether or not declared, to the date of
such payment (the “Series A Liquidation Preference”).  Following the payment of the full amount of
the Series A Liquidation Preference, no additional distributions shall be
made to the holders of shares of Series A Junior Participating Preferred
Stock unless, prior thereto, the holders of shares of Common Stock shall have
received an amount per share (the “Common Adjustment”) equal to the
quotient obtained by dividing (i) the Series A Liquidation Preference
by (ii) 1,000 (as appropriately adjusted as set forth in subparagraph (C) below
to reflect such events as stock splits, stock dividends and recapitalizations
with respect to the Common Stock) (such number in clause (ii), the “Adjustment
Number”).  Following the payment of
the full amount of the Series A Liquidation Preference and the Common 

 

A-7

 

Adjustment in respect
of all outstanding shares of Series A Junior Participating Preferred Stock
and Common Stock, respectively, holders of Series A Junior Participating
Preferred Stock and holders of shares of Common Stock shall receive their
ratable and proportionate share of the remaining assets to be distributed in
the ratio of the Adjustment Number to 1 with respect to such Preferred Stock
and Common Stock, on a per share basis, respectively.

 

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

 

(C)                                In the event the Corporation shall
at any time after the Rights Dividend Declaration Date (i) declare any
dividend on Common Stock payable in shares of Common Stock, (ii) subdivide
the outstanding Common Stock, or (iii) combine the outstanding Common
Stock into a smaller number of shares, then in each such case the Adjustment
Number in effect immediately prior to such event shall be adjusted by
multiplying such Adjustment Number by a fraction the numerator of which is the
number of shares of 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 7.                                            Consolidation,
Merger, etc.  In case the Corporation
shall enter into any consolidation, merger, combination or other transaction in
which the shares of Common Stock are exchanged for or changed into other stock
or securities, cash and/or any other property, then in any such case the shares
of Series A Junior Participating Preferred Stock shall at the same time be
similarly exchanged or changed in an amount per share (subject to the provision
for adjustment hereinafter set forth) equal to 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 changed or
exchanged.  In the event the Corporation
shall at any time after the Rights Dividend Declaration Date (i) declare
any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide
the outstanding Common Stock, or (iii) combine the outstanding Common
Stock into a smaller number of shares, then in each such case the amount set
forth in the preceding sentence with respect to the exchange or change of
shares of Series A Junior Participating 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 

 

A-8

 

number of
shares of Common Stock that were outstanding immediately prior to such event.

 

Section 8.                                            No
Redemption.  The shares of Series A
Junior Participating Preferred Stock shall not be redeemable.

 

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

 

Section 10.                                      Amendment.  At any time when any shares of Series A
Junior Participating Preferred Stock are outstanding, neither the Restated
Certificate of Incorporation of the Corporation nor this Certificate of
Designation shall be amended in any manner that would materially alter or
change the powers, preferences or special rights of the Series A Junior
Participating Preferred Stock so as to affect them adversely without the affirmative
vote of the holders of a majority or more of the outstanding shares of Series A
Junior Participating Preferred Stock, voting separately as a class.

 

Section 11.                                      Fractional
Shares.  Series A Junior
Participating 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 Junior
Participating Preferred Stock.

 

A-9

 

IN WITNESS WHEREOF, we have executed and
subscribed this Certificate and do affirm the foregoing as true under the
penalties of perjury this      day of
              ,
2008.

 

 

	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
				

 

A-10

 

Exhibit B

 

Form of Rights Certificate

 

	
  Certificate
  No. R-

  	
                  
  Rights

  

 

NOT EXERCISABLE AFTER ·, OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS AS
PROVIDED IN THE RIGHTS AGREEMENT.  THE
RIGHTS ARE SUBJECT TO REDEMPTION AT $0.001 PER RIGHT AND TO EXCHANGE ON THE
TERMS SET FORTH IN THE RIGHTS AGREEMENT. 
IF THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE
BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN
AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE
RIGHTS AGREEMENT), THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME
NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF THE
RIGHTS AGREEMENT.

 

Rights Certificate

 

CELERA CORPORATION

 

This certifies that                                            ,
or registered assigns, is the registered owner of the number of Rights set
forth above, each of which entitles the owner thereof, subject to the terms,
provisions and conditions of the Rights Agreement, dated as of ·, 2008 (the “Rights Agreement”), between Celera
Corporation, a Delaware corporation (the “Company”), and Computershare Trust
Company, N.A., a New York corporation (the “Rights Agent”), to purchase from the
Company at any time prior to 5:00 P.M. New York City time on ·, at the office or offices of the Rights Agent
designated for such purpose, or its successors as Rights Agent, one
one-thousandth of a fully paid, non-assessable share of Series A Junior
Participating Preferred Stock (the “Preferred Stock”) of the Company, at a
purchase price of $      per one
one-thousandth of a share (the “Purchase Price”), upon presentation and
surrender of this Rights Certificate with the Form of Election to Purchase
and related Certificate duly executed. 
The number of Rights evidenced by this Rights Certificate (and the
number of shares that may be purchased upon exercise thereof) set forth above,
and the Purchase Price per share set forth above, are the number and Purchase
Price as of ·, 2008, based
on the Preferred Stock as constituted at such date.  The Company reserves the right to require
prior to the occurrence of a Triggering Event (as such term is defined in the
Rights Agreement) that a number of Rights be exercised so that only whole
shares of Preferred Stock will be issued.

 

Upon the occurrence of a Section 11(a)(ii) Event
(as such term is defined in the Rights Agreement), if the Rights evidenced by
this Rights Certificate are beneficially owned by (i) an Acquiring Person
or an Affiliate or Associate of any such Acquiring Person (as such terms are
defined in the Rights Agreement), (ii) a transferee of 

 

B-1

 

any such Acquiring Person,
Associate or Affiliate, or (iii) under certain circumstances specified in
the Rights Agreement, a transferee of a person who, after such transfer, became
an Acquiring Person, or an Affiliate or Associate of an Acquiring Person, such
Rights shall become null and void and no holder hereof shall have any right
with respect to such Rights from and after the occurrence of such Section 11(a)(ii) Event.

 

As provided in the Rights Agreement, the Purchase
Price and the number and kind of shares of Preferred Stock or other securities,
that may be purchased upon the exercise of the Rights evidenced by this Rights
Certificate are subject to modification and adjustment upon the happening of
certain events, including Triggering Events.

 

This Rights Certificate is subject to all of the
terms, provisions and conditions of the Rights Agreement, which terms,
provisions and conditions are hereby incorporated herein by reference and made
a part hereof and to which Rights Agreement reference is hereby made for a full
description of the rights, limitations of rights, obligations, duties and
immunities hereunder of the Rights Agent, the Company and the holders of the
Rights Certificates, which limitations of rights include the temporary
suspension of the exercisability of such Rights under the specific
circumstances set forth in the Rights Agreement.  Copies of the Rights Agreement are on file at
the above-mentioned office of the Rights Agent and are also available upon
written request to the Rights Agent.

 

This Rights Certificate, with or without other
Rights Certificates, upon surrender at the principal office or offices of the
Rights Agent designated for such purpose, may be exchanged for another Rights
Certificate or Rights Certificates of like tenor and date evidencing Rights
entitling the holder to purchase a like aggregate number of one one-thousandths
of a share of Preferred Stock as the Rights evidenced by the Rights Certificate
or Rights Certificates surrendered shall have entitled such holder to
purchase.  If this Rights Certificate
shall be exercised in part, the holder shall be entitled to receive upon
surrender hereof another Rights Certificate or Rights Certificates for the
number of whole Rights not exercised.

 

Subject to the provisions of the Rights Agreement,
the Rights evidenced by this Certificate (i) may be redeemed by the
Company at a redemption price of $0.001 per Right subject to adjustment,
payable, at the election of the Company, in cash or shares (including
fractional shares) of Common Stock or such other consideration as the Board of
Directors may determine or (ii) may be exchanged, in whole or in part, for
shares of the Common Stock, or shares of preferred stock of the Company having
essentially the same value or economic rights as such shares.

 

No fractional shares of Preferred Stock will be
issued upon the exercise of any Right or Rights evidenced hereby (other than
fractions that 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.  The
Company, at its election, may require that a number of Rights be exercised so
that only whole shares of Preferred Stock would be issued.

 

B-2

 

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

 

This Rights Certificate shall not be valid or
obligatory for any purpose until it shall have been countersigned by the Rights
Agent.

 

B-3

 

WITNESS the facsimile signature of the proper
officers of the Company.

 

Dated as of
                  ,
        .

 

 

	
  ATTEST:

  	
  CELERA
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:
  

  	
   

  	
  By:
  

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Name:

  
	
   

  	
  Title:

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Countersigned:

  	
   

  
	
   

  	
   

  
	
  COMPUTERSHARE
  TRUST 

  COMPANY,
  N.A.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Signature

  	
   

  

 

B-4

 

Form of Reverse Side of Rights
Certificate

 

FORM OF ASSIGNMENT

 

(To be executed by the registered holder if
such

holder desires to transfer the Rights Certificate.)

 

FOR VALUE RECEIVED                                                                             hereby
sells, assigns and transfers unto

                                                                                                                                                                                                              

                                                                                                                                                                                                              

(Please
print name and address of transferee)

                                                                                                                                                                                                              

 

this Rights Certificate,
together with all right, title and interest therein, and does hereby
irrevocably constitute and appoint                     Attorney,
to transfer the within Rights Certificate on the books of the within named
Company, with full power of substitution.

 

Dated:                           ,

 

	
   

  	
  Signature

  
	
   

  	
   

  
	
  Signature Guaranteed:

  	
   

  

 

Certificate

 

The undersigned hereby certifies by checking the
appropriate boxes that:

 

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

 

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

 

	
  Dated:                             ,

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
  Signature
  Guaranteed:

  	
   

  

 

B-5

 

NOTICE

 

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

 

B-6

 

FORM OF ELECTION TO
PURCHASE

 

(To be executed if holder desires to 

exercise Rights represented by the 

Rights Certificate.)

 

To:  Celera Corporation:

 

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

 

Please insert social security

or other identifying number

 

                                                                                                                                                                                                              

(Please print name and address)

 

                                                                                                                                                                                                              

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

 

Please insert social security

or other identifying number

 

                                                                                                                                                                                                              

(Please print name and address)

                                                                                                                                                                                                              

                                                                                                                                                                                                              

	
  Dated:                             ,

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
  Signature
  Guaranteed:

  	
   

  

 

B-7

 

Certificate

 

The undersigned hereby certifies by checking the
appropriate boxes that:

 

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

 

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

 

	
  Dated:                             ,

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
  Signature
  Guaranteed:

  	
   

  

 

NOTICE

 

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

 

B-8

 

Exhibit C

 

SUMMARY OF RIGHTS TO PURCHASE

PREFERRED STOCK

 

On ·, 2008, the Board of Directors of Celera Corporation
(the “Company”) declared a dividend distribution of one Right for each
outstanding share of common stock, par value of $0.01 per share (the “Common
Stock”), of the Company to stockholders of record at the close of business
on ·, 2008 (the “Record
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 $0.01 per share
(the “Series A Preferred Stock”), at a Purchase Price of $       ,
subject to adjustment.  The description
and terms of the Rights are set forth in a Rights Agreement (the “Rights
Agreement”) between the Company and Computershare Trust Company, N.A., as
Rights Agent.

 

Initially, the Rights will
be attached to all Common Stock certificates representing shares then
outstanding, and no separate Rights Certificates will be distributed.  Subject to certain exceptions specified in
the Rights Agreement, the Rights will separate from the Common Stock and a
Distribution Date will occur upon the earlier of (i) 10 days following a
public announcement that a person or group of affiliated or associated persons
(an “Acquiring Person”) has acquired beneficial ownership of 15% or more
of the outstanding shares of Common Stock (the “Stock Acquisition Date”),
other than as a result of repurchases of stock by the Company or certain
inadvertent actions by institutional or certain other stockholders or (ii) 10
business days (or such later date as the Board shall determine) following the
commencement of a tender offer or exchange offer that would result in a person
or group becoming an Acquiring Person. 
Until the Distribution Date, (i) the Rights will be evidenced by
the Common Stock certificates and will be transferred with and only with such
Common Stock certificates, (ii) new Common Stock certificates issued after
the Record Date will contain a notation incorporating the Rights Agreement by
reference and (iii) the surrender for transfer of any certificates for
Common Stock outstanding will also constitute the transfer of the Rights
associated with the Common Stock represented by such certificate.  Pursuant to the Rights Agreement, the Company
reserves the right to require prior to the occurrence of a Triggering Event (as
defined below) that, upon any exercise of Rights, a number of Rights be
exercised so that only whole shares of Preferred Stock will be issued.

 

The Rights are not
exercisable until the Distribution Date and will expire at 5:00 P.M. New
York City time on ·, unless such
date is extended or the Rights are earlier redeemed or exchanged by the
Company, in each case as described below.

 

As soon as practicable after
the Distribution Date, Rights Certificates will be mailed to holders of record
of the Common Stock as of the close of business on the Distribution Date and,
thereafter, the separate Rights Certificates alone will represent the
Rights.  Except as otherwise determined
by the Board of Directors, only shares of Common Stock issued prior to the
Distribution Date will be issued with Rights.

 

C-1

 

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

 

For example, at an exercise
price of $A per Right, each Right not owned by an Acquiring Person (or by
certain related parties) following an event set forth in the preceding
paragraph would entitle its holder to purchase $2A worth of Common Stock (or
other consideration, as noted above) for $A. 
Assuming that the Common Stock had a per share value of $B at such time,
the holder of each valid Right would be entitled to purchase four shares of
Common Stock for $2B.

 

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

 

At any time after a person
becomes an Acquiring Person and prior to the acquisition by such person or
group of fifty percent (50%) or more of the outstanding Common Stock, the Board
may exchange the Rights (other than Rights owned by such person or group that
have become void), in whole or in part, at an exchange ratio of one share of
Common Stock, or one one-thousandth of a share of Preferred Stock (or of a
share of a class or series of the Company’s preferred stock having equivalent
rights, preferences and privileges), per Right (subject to adjustment).

 

The Purchase Price payable,
and the number of one one-thousandths 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) if
holders of the Preferred Stock are granted certain rights or warrants to
subscribe for Preferred Stock or convertible securities at less than the
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 quarterly cash dividends) or of subscription rights
or warrants (other than those referred to above).

 

C-2

 

With certain exceptions, no
adjustment in the Purchase Price will be required until cumulative adjustments
amount to at least 1% of the Purchase Price. 
No fractional shares of Preferred Stock (other than fractions that are
integral multiples of one one-thousandth of a share of Preferred Stock) will be
issued and, in lieu thereof, an adjustment in cash will be made based on the
market price of the Preferred Stock on the last trading date prior to the date
of exercise.

 

At any time until ten days
following the Stock Acquisition Date, the Company, at the election of the Board
of Directors, may redeem the Rights in whole, but not in part, at a price of
$0.001 per Right (payable in cash, Common Stock or other consideration deemed
appropriate by the Board of Directors). 
The redemption 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 Right will terminate and
the only right of the holders of Rights will be to receive the redemption
price.

 

Until a Right is exercised,
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.  While the distribution of the
Rights will not be taxable to stockholders or to the Company, stockholders may,
depending upon the circumstances, recognize taxable income in the event that
the Rights become exercisable for Common Stock (or other consideration) of the
Company or for common stock of the acquiring company or in the event of the
redemption of the Rights as set forth above.

 

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

 

A copy of the Rights
Agreement is being filed with the Securities and Exchange Commission as an Exhibit to
a registration statement of Form S-1, as amended, dated ·, 2008.  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, which is incorporated herein by reference.

 

C-3Exhibit 10.13

 

FORM OF

 

CELERA CORPORATION

 

2008 STOCK INCENTIVE PLAN

 

 

1.              Purpose of the Plan.

 

The
purpose of this Celera Corporation 2008 Stock Incentive Plan (the “Plan”) is to
increase stockholder value and to advance the interests of Celera Corporation
and its subsidiaries (collectively, the “Corporation”) by providing financial
incentives designed to attract, retain, and motivate employees, officers,
consultants, and directors of the Corporation. The Plan reflects the
established policy of the Corporation of encouraging ownership of its Stock by
key personnel and of providing incentives for such individuals to put forth
maximum efforts for the success of the Corporation.

 

2.              Definitions.

 

As
used herein, the following terms have the meanings hereinafter set forth unless
the context clearly indicates to the contrary:

 

2.1  “Act” means the
Securities Exchange Act of 1934, as amended from time to time.

 

2.2  “Agreement” means the
written agreement between the Corporation and an Optionee or Award Recipient,
as the case may be, evidencing the grant of an Option or Award and setting
forth the terms and conditions thereof.

 

2.3  “Award” means a Stock
Award, Performance Share Award, or Director Stock Award.

 

2.4  “Award Recipient” means an
individual to whom an Award has been granted under the Plan.

 

2.5  “Board of Directors” means the
Board of Directors of Celera Corporation.

 

2.6  “Code” means the Internal Revenue
Code of 1986, as amended from time to time.

 

2.7  “Committee” means the Compensation
Committee of the Board of Directors, or any successor thereto or committee
designated thereby whose members qualify as (a) outside directors as
defined in Section 162(m) of the Code and the Treasury Regulations
issued pursuant thereto and (b) non-employee directors within the meaning
of Rule 16b-3 under the Act.

 

 

2.8  “Continuous Service” means an
uninterrupted chain of continuous employment by the Corporation or an
uninterrupted chain of continuous performance of services for the Corporation
by a consultant. A leave of absence granted in accordance with the Corporation’s
usual procedures which does not operate to interrupt continuous employment or
continuous performance of services for other benefits granted by the
Corporation shall not be considered a termination of employment nor an
interruption of Continuous Service hereunder, and an employee or consultant who
is granted such a leave of absence shall be considered to be continuously
employed or continuously performing services during the period of such leave; provided, however, that if regulations
under the Code or an amendment to the Code shall establish a more restrictive
definition of a leave of absence, such definition shall be substituted herein.

 

2.9  “Director Stock Award” means an award
of shares of Stock granted pursuant to Section 10 hereof.

 

2.10  “Fair Market Value” means the
simple average of the high and low sales prices of a share of Stock as reported
in the report of composite transactions (or other source designated by the
Committee) on the date on which fair market value is to be determined (or if
there shall be no trading on such date, then on the first previous date on
which sales were made on a national securities exchange).

 

2.11  “Incentive Stock
Options” means those Options granted hereunder to employees
as incentive stock options as defined in, and which by their terms comply with
the requirements for such Options set out in, Section 422 of the Code and
the Treasury Regulations issued pursuant thereto.

 

2.12  “Maximum Value
Options” means those Options granted hereunder for which the
Committee may establish, at the date of grant, terms and conditions that limit
the maximum dollar value that a participant under the Plan may receive in the
form of shares of Stock upon the exercise of such Maximum Value Option.

 

2.13  “Non-Employee
Director” means a member of the Board of Directors who is not
an employee or officer of the Corporation.

 

2.14  “Non-Qualified Stock
Options” means those Options granted hereunder which are not
intended to qualify as Incentive Stock Options.

 

2.15  “Normal Retirement
Age” means the normal retirement age of a member of the
Board of Directors as determined by the Board of Directors from time to time.

 

2.16  “Option” means an
option granted pursuant to Section 6 hereof.

 

2.17  “Optionee”
means an individual to whom an Option has been granted under the Plan.

 

2

 

2.18  “Performance Share
Award” means an award of Performance Shares granted
pursuant to Section 9 hereof.

 

2.19  “Performance Shares” means shares
of Stock covered by a Performance Share Award.

 

2.20  “Restricted Stock
Bonus” means an award of shares of Stock not requiring the
Award Recipient to pay any amount of monetary consideration granted pursuant to
the provisions of Section 8.3 hereof.

 

2.21  “Restricted Stock
Unit” means the right to receive one (1) share of
Stock at the time the Restricted Stock Unit vests, which may be subject to the
further right to elect to defer receipt of shares of Stock otherwise deliverable
upon the vesting of an award of restricted stock if and to the extent provided
in the Award Recipient’s Agreement. Restricted Stock Units are subject to the
provisions of Section 8.2 hereof.

 

2.22  “Stock” means the
common stock, par value $.01 per share, of the Corporation.

 

2.23  “Stock Appreciation
Right” means the right to receive an amount equal to the
Fair Market Value of one (1) share of Stock on the day the Stock
Appreciation Right is redeemed, reduced by the exercise price of such right.
Stock Appreciation Rights are subject to the provisions of Section 8.1
hereof.

 

2.24  “Stock Award” means an award
granted pursuant to Section 8 hereof. The term “Stock Award” shall
include, but shall not be limited to, those types of benefits listed in Section 8.

 

2.25  “Stock Restrictions” mean the
restrictions, including performance goals, placed on an Award under the Plan.

 

2.26  “Stock Unit” means the
bookkeeping entry representing the equivalent of one (1) share of Stock.

 

2.27  “Ten Percent
Stockholder” means an individual who owns, within the meaning of
Section 422(b)(6) of the Code and the Treasury Regulations issued
pursuant thereto, stock possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Corporation.

 

3.              Shares Reserved for the Plan.

 

The
aggregate number of shares of Stock available for Options and Awards under the
Plan is [·] (“Share
Reserve”), subject to adjustment in accordance with Section 15, of which
not more than [·] shares of
Stock, subject to adjustment in accordance with Section 15, may be issued
pursuant to Restricted Stock Units, Restricted Stock Bonuses, and Performance
Share Awards. Each share of Stock issued pursuant to an Option or 

 

3

 

Award
will reduce the Share Reserve by one (1) share. To the extent that an
Award is settled in cash rather than in shares of Stock, the Share Reserve
shall remain unchanged; provided, however,
that shares of Stock underlying the portion of a Stock Appreciation Right that
is exercised (whether or not shares of Stock are actually issued to the Award
Recipient upon such exercise) shall be considered issued for purposes of the
Plan and shall reduce the Share Reserve on a one for one basis. Shares of Stock
issued under the Plan shall be authorized but unissued shares. In lieu of such
unissued shares, the Corporation may, in its discretion, transfer on the
exercise of Options or the delivery of shares of Stock issued pursuant to
Awards treasury shares, reacquired shares, or shares acquired in the market for
purposes of the Plan.

 

If
any Options or Awards granted under the Plan shall for any reason terminate, be
canceled or reacquired, or expire without having been exercised or vested in
full, shares of Stock not issued or vested in full under such Options or Awards
shall be available again for issuance under the Plan. Notwithstanding the
foregoing, shares of Stock tendered in payment of the purchase price of an
Option and shares of Stock withheld by the Corporation to satisfy any
withholding tax obligation arising in connection with an Option or Award shall
not be available again for issuance under the Plan.

 

4.              Administration of the Plan.

 

The
Committee shall have plenary authority in its discretion, but subject to the
express provisions of the Plan, to administer the Plan, including, without
limitation, the authority to determine the individuals to whom, and the time or
times at which, Options and Awards shall be granted, the number of shares of
Stock to be covered by each Option and Award, and the terms and conditions of
each Option and Award. The Committee shall also have plenary authority in its
discretion to interpret the Plan; to prescribe, amend, and rescind rules and
regulations relating to it; to determine the terms (which need not be
identical) of Agreements executed and delivered under the Plan, including,
without limitation, such terms and provisions as shall be requisite in the
judgment of the Committee to conform to any change in any law or regulation applicable
thereto; and to make any and all other determinations and take any and all
actions deemed necessary or advisable for the administration of the Plan. The
Committee’s determination on the foregoing matters shall be conclusive and
binding on all persons having an interest in the Plan.

 

5.               Eligibility; Factors to be Considered in Granting Options and
Awards.

 

5.1  Eligibility; Factors.  Subject
to the terms of the Plan, an Option may be granted to any person who, at the
time the Option is granted, is an employee (which term shall include officers)
of the Corporation, a Non-Employee Director, or a consultant performing
services for the Corporation. Stock Awards or Performance Share Awards may be
granted to any person who, at the time such Stock Award or Performance Share
Award is granted, is an employee (which term shall include officers) of, or
consultant performing services for, the Corporation. Non-Employee Directors
shall not be eligible to receive Stock Awards or Performance Share Awards. In
determining the employees, 

 

4

 

Non-Employee
Directors, and consultants to whom Options or Awards shall be granted, the
number of shares of Stock to be covered by each Option or Award, and the terms
and conditions of each Option and Award, the Committee shall take into account
the duties and responsibilities of the respective employees, Non-Employee
Directors, and consultants, their present and potential contributions to the
success of the Corporation, and such other factors as they shall deem relevant
in connection with accomplishing the purposes of the Plan. An employee,
Non-Employee Director, or consultant who has been granted an Option or Award
may be granted and hold additional Options or Awards if the Committee shall so
determine.

 

5.2  Section 162(m) Limitation.  Subject
to the provisions of Section 15 of the Plan relating to adjustments upon
changes in the shares of Stock, no employee of the Corporation shall be
eligible to be granted Options or Stock Appreciation Rights covering more than
[·] shares of
Stock (i.e., ten percent (10%) of the Share Reserve) during any fiscal year of
the Corporation.

 

5.3  Consultants.  A
consultant shall not be eligible for the grant of an Option or Award if, at the
time of grant, a Form S-8 Registration Statement (“Form S-8”) under
the Securities Act of 1933, as amended (“Securities Act”) is not available to
register either the offer or the sale of the Corporation’s securities to such
consultant because of the nature of the services that the consultant is
providing to the Corporation, or because the consultant is not a natural
person, or as otherwise provided by the rules governing the use of Form S-8,
unless the Corporation determines both (a) that such grant (i) shall
be registered in another manner under the Securities Act (e.g., on a Form S-3
Registration Statement) or (ii) does not require registration under the
Securities Act in order to comply with the requirements of the Securities Act,
if applicable, and (b) that such grant complies with the securities laws
of all other relevant jurisdictions.

 

6.              Options.

 

6.1  Grant of Options.  Subject
to the terms of the Plan, the Committee may grant Options to such employees,
Non-Employee Directors, and consultants at such time or times and in such
amounts as it shall determine. Each Option granted hereunder shall be
designated as an Incentive Stock Option or Non-Qualified Stock Option and shall
be evidenced by an Agreement containing such terms and conditions as the
Committee shall deem appropriate; provided,
however, that Incentive Stock Options shall be granted only to
employees of the Corporation. The Committee may, in its sole discretion, grant
Non-Qualified Stock Options as Maximum Value Options.

 

6.2  Purchase Price.  The
purchase price of each share of Stock covered by an Option shall be not less
than one hundred percent (100%) (or one hundred and ten percent (110%) in the
case of an Incentive Stock Option granted to a Ten Percent Stockholder) of the
Fair Market Value of a share of Stock on the date the Option is granted.

 

5

 

6.3  Term.  The
term of each Option shall be for such period as the Committee shall determine,
but not more than ten (10) years (or five (5) years in the case of an
Incentive Stock Option granted to a Ten Percent Stockholder) from the date of
grant thereof, and shall be subject to earlier termination as hereinafter
provided. If the original term of any Option is less than ten (10) years
(or five (5) years in the case of an Incentive Stock Option granted to a
Ten Percent Stockholder) from the date of grant, the Option prior to its
expiration may be amended, to extend the term so that the term as amended is
not more than ten (10) years (or five (5) years in the case of an
Incentive Stock Option granted to a Ten Percent Stockholder) from the original
date of grant of such Option.

 

6.4  Vesting.  An
Option shall be exercisable at such time or times and in such manner and number
of shares as the Committee shall determine. Except as provided in the Plan, no
Option may be exercised at any time unless the holder thereof is then an
employee of the Corporation, a member of the Board of Directors, or a
consultant performing services for the Corporation. Options granted under the
Plan shall not be affected by any change of duties or position so long as the
holder continues to be (a) an employee of the Corporation, (b) a
member of the Board of Directors, or (c) a consultant performing services
for the Corporation.

 

6.5  Termination of
Employment or Services.  Except as
otherwise determined by the Committee and provided in the Agreement, in the
event that the employment of an employee to whom an Option has been granted
under the Plan shall be terminated or the services of a Non-Employee Director
or consultant to whom an Option has been granted under the Plan shall be
terminated (other than by reason of Cause, retirement, disability, or death),
such Option may, subject to the provisions of the Plan, be exercised, to the
extent that the employee, Non-Employee Director, or consultant was entitled to
do so at the date of termination of his or her employment or services, at any
time within ninety (90) days after such termination, but in no event after the
expiration of the term of the Option.

 

6.6  Termination of
Employment or Services for Cause.  In the event
that the employment of an employee to whom an Option has been granted under the
Plan shall be terminated or the services of a Non-Employee Director or
consultant to whom an Option has been granted under the Plan shall be
terminated for Cause (as such term is defined below), such Option shall be
immediately forfeited in full upon such termination (regardless of the extent
to which such Option may have been exercisable as of such time). For purposes
of this Section 6.6 only, “Cause” shall be defined as (a) any act
which is in bad faith and to the detriment of the Corporation or (b) a
material breach of any agreement with or material obligation to the
Corporation.

 

6.7  Retirement.

 

(a) Employees.  Except as otherwise determined by the
Committee and provided in the Agreement, if an employee to whom an Option has
been granted under the Plan shall retire from the Corporation pursuant to any
retirement plan provided by the Corporation, then such Option may be exercised,
to the extent that the employee 

 

6

 

was
entitled to do so at the date of such retirement, at any time (i) in the
case of an employee holding an Incentive Stock Option, within three (3) months
after the date of such retirement, but in no event after the expiration of the
term of the Option or (ii) in the case of a Non-Qualified Stock Option,
within one (1) year after the date of such retirement, but in no event
after the expiration of the term of the Option.

 

(b) Non-Employee Directors.  Except
as otherwise determined by the Committee and provided in the Agreement, if a
Non-Employee Director to whom an Option has been granted under the Plan (i) retires
from the Board of Directors upon reaching Normal Retirement Age or (ii) resigns
or declines to stand for reelection with the approval of the Board of
Directors, then such Option may be exercised, to the extent that the
Non-Employee Director was entitled to do so at the date of such retirement,
resignation, or declining to stand for reelection, at any time within one (1) year
after the cessation of services to the Corporation following such retirement,
resignation, or declining to stand for reelection, but in no event after the
expiration of the term of the Option.

 

6.8  Disability.  Except
as otherwise determined by the Committee and provided in the Agreement, if an
employee, Non-employee Director, or consultant to whom an Option has been
granted under the Plan becomes totally and permanently disabled, then such
Option may be exercised, notwithstanding the provisions of Section 6.4, in
full without regard to the period of Continuous Service after the Option was
granted at any time (a) in the case of an Incentive Stock Option, within
three (3) months after the date of termination of employment as a result
of such disability, but in no event after the expiration of the term of the
Option, or (b) in the case of a Non-Qualified Stock Option, within one (1) year
(three (3) years in the case of a Non-Employee Director) after the date of
termination of employment or cessation of services as a result of such
disability, but in no event after the expiration of the term of the Option.

 

6.9  Death.  Except
as otherwise determined by the Committee and provided in the Agreement, if an
employee, Non-Employee Director, or consultant to whom an Option has been
granted under the Plan shall die while employed by the Corporation, serving as
a member of the Board of Directors, or engaged to perform services for the
Corporation, such Option may be exercised to the extent that the employee,
Non-Employee Director, or consultant was entitled to do so at the date of his
or her death, by his or her executor or administrator or other person at the
time entitled by law to the employee’s, Non-Employee Director’s, or consultant’s
rights under the Option, at any time within one (1) year after his or her
death, but in no event after the expiration of the term of the Option.

 

7.              Terms and Conditions Applicable to Options.

 

7.1  Transferability.  During
the lifetime of an Optionee, an Option shall not be transferable, except
pursuant to a domestic relations order; provided,
however, that the Committee may, in its sole discretion, permit an
Optionee to transfer a Non-Qualified Stock Option by gift to (a) any
child, stepchild, grandchild, parent, stepparent, 

 

7

 

grandparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including
adoptive relationships, (b) any person sharing the Optionee’s household
(other than a tenant or employee), (c) a trust in which any of the persons
specified in clauses (a) or (b) have more than fifty percent (50%) of
the beneficial interest, (d) a foundation in which any of the persons
specified in clauses (a) or (b) (or the Optionee) control the
management of assets, or (e) any other entity in which any of the persons
specified in clauses (a) or (b) (or the Optionee) own more than fifty
percent (50%) of the voting interests. After the death of an Optionee, an
Option may be transferred pursuant to the laws of descent and distribution.

 

7.2  Method of
Exercise.  An Option may be exercised by giving written
notice to the Corporation specifying the number of shares of Stock to be
purchased. No Option may be exercised with respect to a fractional share. The
purchase price of the shares as to which an Option shall be exercised shall be
paid in full at the time of exercise at the election of the holder of an Option
(a) in cash or currency of the United States of America, (b) by
tendering to the Corporation shares of Stock owned by such holder (if
necessary, Stock owned for such period of time required to avoid a charge to
earnings for financial accounting purposes), having a Fair Market Value equal
to the cash exercise price applicable to the purchase price of the shares as to
which the Option is being exercised, (c) a combination of cash and/or
previously owned shares of Stock valued at Fair Market Value, (d) pursuant
to a “same day sale” program, (e) by means of a net exercise, or (f) by
payment of such other consideration as the Committee shall from time to time
determine. For purposes of the immediately preceding sentence, Fair Market
Value shall be determined as of the business day immediately preceding the day
on which the Option is exercised. Notwithstanding the foregoing, the Committee
shall have the right to modify, amend, or cancel the provisions of clauses (b),
(c) or (d) above at any time upon prior notice to the holders of
Options.

 

7.3  Stockholder Rights.  An
Optionee shall have none of the rights of a stockholder with respect to the
shares subject to an Option until such shares have been registered upon the
exercise of the Option on the transfer books of the Corporation in the name of
such Optionee and then only to the extent that any restrictions imposed thereon
by the Committee shall have lapsed.

 

7.4  No Loans.  Neither
the Corporation, any company with which it is affiliated, nor any of their
respective subsidiaries may directly or indirectly lend money to any person for
the purpose of assisting such person in acquiring or carrying shares of Stock
issued upon the exercise of an Option.

 

7.5  Conditions Precedent
to Exercise.  Notwithstanding any other provision of
the Plan, but subject to the provisions of Section 11, the exercise of an
Option following termination of employment or service shall be subject to the
satisfaction of the conditions precedent that the Optionee has not (a) rendered
services or engaged directly or indirectly in any business which in the opinion
of the Committee competes with or is in conflict with the interests of the
Corporation; provided, however,
that the ownership by an 

 

8

 

Optionee
of five percent (5%) or less of any class of securities of a publicly traded
company shall not be deemed to violate this clause or (b) violated any
written agreement with the Corporation, including, without limitation, any
confidentiality agreement. An Optionee’s violation of clause (a) or (b) of
the preceding sentence shall result in the immediate forfeiture of any Options
held by such Optionee.

 

7.6  Limitations on the
Grant of Incentive Stock Options.  The aggregate
Fair Market Value of the Stock (determined as of the date the Option is
granted) with respect to which Incentive Stock Options granted under the Plan
and all other stock option plans of the Corporation (or any parent or
subsidiary of the Corporation) are exercisable for the first time by any
specific individual during any calendar year shall not exceed one hundred
thousand dollars ($100,000), and any Option grant (or portion thereof) in
excess of that limit shall automatically be characterized as a Non-Qualified
Stock Option. No Incentive Stock Option may be granted hereunder to an
individual who immediately after such Option is granted is a Ten Percent
Stockholder unless (a) the Option price is at least one hundred and ten
percent (110%) of the fair market value of such stock on the date of grant and (b) the
Option may not be exercised more than five (5) years after the date of
grant.

 

8.              Stock Awards.

 

Subject
to the terms of the Plan, the Committee may grant Stock Awards to Award
Recipients at such time or times and in such amounts as it shall determine.
Shares of Stock issued pursuant to Stock Awards may, but need not, be subject
to such restrictions as may be established by the Committee at the time of the
grant and reflected in an Agreement. Stock Awards available for grant under the
Plan shall include: (a) Stock Appreciation Rights, (b) Restricted
Stock Units, and (c) Restricted Stock Bonuses.

 

8.1  Stock Appreciation
Rights.  The following terms and conditions shall
govern the grant and redemption of Stock Appreciation Rights:

 

(a)  Exercise
Price.  The number of shares of Stock underlying
each Stock Appreciation Right and the exercise price in effect for those shares
shall be determined by the Committee in its sole discretion at the time the Stock
Appreciation Right is granted. In no event, however, shall the exercise price
for each share of Stock underlying the Stock Appreciation Right be less than
one hundred percent (100%) of the Fair Market Value per underlying share of
Stock on the grant date.

 

(b)  Redemption.  The
Stock Appreciation Right shall cover a specified number of underlying shares of
Stock and shall be redeemable upon such terms and conditions as the Committee
may establish. Upon redemption of the Stock Appreciation Right, the holder
shall be entitled to receive a distribution from the Corporation in an amount
equal to the excess of (i) the aggregate Fair Market Value (on the
redemption date) of the shares of Stock underlying the redeemed right over (ii) the
aggregate exercise price in effect for those shares.

 

9

 

(c)  Distribution.  The
distribution with respect to any redeemed Stock Appreciation Right may be made
in shares of Stock valued at the Fair Market Value on the redemption date, in
cash, or partly in shares and partly in cash, as the Committee shall in its
sole discretion deem appropriate.

 

(d)  Stockholder
Rights.  No recipient of an award of Stock
Appreciation Rights shall be deemed to be the holder of, or to have any of the rights
of a holder with respect to, any shares of Stock issuable in redemption of such
Stock Appreciation Rights except to the extent that the Corporation has issued
the shares relating to such Stock Appreciation Rights.

 

(e)  Non-Transferability.  Prior
to the time Stock Restrictions lapse and the Corporation has issued the shares
of Stock relating to such Stock Appreciation Rights, none of the shares of
Stock subject to an award of Stock Appreciation Rights may be sold, assigned,
bequeathed, transferred, pledged, hypothecated, or otherwise disposed of in any
way by the Award Recipient, except in the event of the death of the Award
Recipient with respect to those shares of Stock as to which the Stock
Restrictions have lapsed.

 

(f)   Lapse
of Restrictions.  In the event of the
termination of employment or other service to the Corporation of a recipient of
an award of Stock Appreciation Rights prior to the lapse of Stock Restrictions,
by reason of death, total and permanent disability, retirement, or resignation
or discharge from employment or other service to the Corporation (other than
discharge for Cause as defined in Section 6.6), the Committee may, in its
discretion, remove any Stock Restrictions on all or a portion of the Stock
subject to an award of Stock Appreciation Rights.

 

8.2  Restricted Stock
Units.  Each Restricted Stock Unit shall be
evidenced by an Agreement containing such terms and conditions as the Committee
shall deem appropriate; provided, however,
each such Agreement shall include (through incorporation of the provisions
hereof by reference in the Agreement or otherwise) the substance of each of the
following provisions:

 

(a)  Consideration.  A
Restricted Stock Unit may be awarded in consideration for past services
actually rendered to the Corporation for its benefit.

 

(b)  Vesting.  An
award of Restricted Stock Units shall vest at such time or times as the
Committee shall determine; provided,
however, that an award of Restricted Stock Units shall not fully
vest (i) in less than one (1) year from the date of grant, in the
case of Restricted Stock Units subject to performance goals, and (ii)  in
less than three (3) years from the date of grant, in the case of all other
Restricted Stock Units.  Vesting shall
generally be based on the Award Recipient’s Continuous Service. Subject to the
provisions of Section 8.2(h), the shares of stock to be delivered upon
vesting of Restricted Stock Units shall be delivered as soon as practicable
after vesting, but in no event later than two and one-half (2 1⁄2) months after
the end of the calendar year in which the Restricted Stock Units vest.

 

10

 

(c)  Restrictions
on Restricted Stock Units.  Except as
expressly provided in the Plan or an Award Recipient’s Agreement, any shares of
Stock subject to an award of Restricted Stock Units with respect to which Stock
Restrictions have not been satisfied at the time of the termination of the
Award Recipient’s employment or other service to the Corporation shall be
forfeited and all rights of the recipient of such award of Restricted Stock
Units shall terminate without any payment of consideration by the Corporation.

 

(d)  Stockholder
Rights.  No recipient of an award of Restricted
Stock Units shall be deemed to be the holder of, or to have any of the rights
of a holder with respect to, any shares of Stock deliverable with respect to
such Restricted Stock Units except to the extent that the Corporation has
issued the shares of Stock relating to such Restricted Stock Units.

 

(e)  Non-Transferability.  Prior
to the time Stock Restrictions lapse and the Corporation has issued the shares
of Stock relating to such Restricted Stock Units, none of the shares of Stock
subject to an award of Restricted Stock Units may be sold, assigned,
bequeathed, transferred, pledged, hypothecated, or otherwise disposed of in any
way by the Award Recipient, except in the event of the death of the Award
Recipient with respect to those shares of Stock as to which the Stock
Restrictions have lapsed.

 

(f)  Lapse
of Restrictions  In the event of the termination of
employment or other service to the Corporation of a recipient of an award of Restricted
Stock Units prior to the lapse of Stock Restrictions, by reason of death, total
and permanent disability, retirement, or resignation or discharge from
employment or other service to the Corporation (other than discharge for Cause
as defined in Section 6.6), the Committee may, in its discretion, remove
any Stock Restrictions on all or a portion of the Stock subject to an award of
Restricted Stock Units.

 

(g)  Limitations
on Restricted Stock Units.  No recipient of
an award of Restricted Stock Units may receive Restricted Stock Units
representing more than [·] shares of
Stock during any fiscal year of the Corporation, subject to adjustment in
accordance with Section 15.

 

(h)  Deferrals.  To
the extent permitted by the Committee in the terms of his or her Agreement, an
Award Recipient may elect to defer receipt of shares of Stock otherwise
deliverable upon the vesting of an award of Restricted Stock Units, so long as
such deferral election complies with applicable law, including to the extent
applicable, Section 409A of the Code and the Employee Retirement Income
Security Act of 1974, as amended. An election to defer such delivery shall be
irrevocable and shall be made in writing on a form acceptable to the
Corporation. The election form shall be filed prior to the vesting date of such
Restricted Stock Units in a manner determined by the Committee. When the Award
Recipient vests in such Restricted Stock Units, the Award Recipient shall be
credited with a number of Restricted Stock 

 

11

 

Units
equal to the number of shares of Stock for which delivery is deferred.
Restricted Stock Units shall be paid by delivery of shares of Stock in
accordance with the timing and manner of payment elected by the Award Recipient
on his or her election form, or if no deferral election is made, as soon as
administratively practicable following the vesting of the Restricted Stock Unit
as provided in Section 8.2(b).

 

8.3  Restricted Stock
Bonuses.  Each Restricted Stock Bonus shall be
evidenced by an Agreement containing such terms and conditions as the Committee
shall deem appropriate; provided, however,
that each such Agreement shall include (through incorporation of the provisions
hereof by reference in the Agreement or otherwise) the substance of each of the
following provisions:

 

(a)  Consideration.  A
Restricted Stock Bonus may be awarded in consideration for past services
actually rendered to the Corporation for its benefit.

 

(b)  Vesting.  A
Restricted Stock Bonus shall vest at such time or times as the Committee shall
determine; provided, however,
that a Restricted Stock Bonus shall not fully vest in less than three (3) years
from the date of grant. Vesting shall generally be based on the Award Recipient’s
Continuous Service.

 

(c)  Restrictions
on Restricted Stock Bonuses.  Except as
expressly provided in the Plan or an Award Recipient’s Agreement, any shares of
Stock subject to a Restricted Stock Bonus with respect to which Stock
Restrictions have not been satisfied at the time of the termination of the
Award Recipient’s employment or other service to the Corporation shall be
forfeited and all rights of the recipient of such Restricted Stock Bonus shall
terminate without any payment of consideration by the Corporation.

 

(d)  Stockholder
Rights.  The recipient of a Restricted Stock
Bonus shall be entitled to such rights of a stockholder with respect to the
shares of Stock issued pursuant to such Restricted Stock Bonus as the Committee
shall determine, including the right to vote such shares of Stock, except that
cash and stock dividends with respect to such shares may, at the discretion of
the Committee, be either paid currently or withheld by the Corporation for the
Award Recipient’s account, and interest may be accrued on the amount of cash
dividends withheld at a rate and subject to such terms as determined by the
Committee.

 

The Committee, in its discretion, may cause a legend
or legends to be placed on any certificate representing shares issued pursuant
to Restricted Stock Bonuses, which legend or legends shall make appropriate
reference to the Stock Restrictions imposed thereon. The Committee may also in
its discretion require that certificates representing shares issued pursuant to
Restricted Stock Bonuses remain in the physical custody of the Corporation or
an escrow holder until any or all of the Stock Restrictions imposed under the
Plan have lapsed.

 

12

 

(e)  Non-Transferability.  Prior
to the time Stock Restrictions lapse, none of the shares of Stock issued
pursuant to a Restricted Stock Bonus may be sold, assigned, bequeathed,
transferred, pledged, hypothecated, or otherwise disposed of in any way by the
recipient of a Restricted Stock Bonus.

 

(f)  Lapse
of Restrictions.  In the event of the termination of
employment or other service to the Corporation of a recipient of a Restricted
Stock Bonus prior to the lapse of Stock Restrictions, by reason of death, total
and permanent disability, retirement, or resignation or discharge from
employment or other service to the Corporation (other than discharge for Cause
as defined in Section 6.6), the Committee may, in its discretion, remove
any Stock Restrictions on all or a portion of the Stock subject to a Restricted
Stock Bonus.

 

(g)  Limitations
on Restricted Stock Bonuses.  No recipient of
a Restricted Stock Bonus may receive Restricted Stock Bonuses representing more
than [·] shares of
Stock during any fiscal year of the Corporation, subject to adjustment in
accordance with Section 15.

 

9.              Performance Share Awards.

 

9.1  Grant of Performance
Share Awards.  Subject to the terms of the Plan, the
Committee may grant Performance Share Awards to such employees at such time or
times and in such amounts as it shall determine. Stock issued pursuant to a
Performance Share Award shall be subject to the attainment of performance goals
relating to one or more criteria within the meaning of Section 162(m) of
the Code and the Treasury Regulations issued pursuant thereto. The performance
goals shall relate to one of the following criteria, either individually,
alternatively, or in any combination, applied to either the Corporation as a
whole or to a business unit or subsidiary, either individually, alternatively,
or in any combination, and measured either annually or cumulatively over a
period of years, on an absolute basis or relative to a pre-established target,
to previous years’ results, or to a designated comparison group, in each case
as specified by the Committee:

 

	
  ·

  	
   

  	
  revenue

  	
   

  	
  ·

  	
   

  	
  market
  share

  
	
  ·

  	
   

  	
  earnings
  per share

  	
   

  	
  ·

  	
   

  	
  return
  on capital

  
	
  ·

  	
   

  	
  earnings
  before interest and taxes

  	
   

  	
  ·

  	
   

  	
  cash
  flow or operating cash flow

  
	
  ·

  	
   

  	
  earnings
  before interest, taxes, and amortization

  	
   

  	
  ·

  	
   

  	
  return
  on equity or total stockholder return

  
	
  ·

  	
   

  	
  income
  or net income

  	
   

  	
  ·

  	
   

  	
  stock
  price

  
	
  ·

  	
   

  	
  operating
  income or net operating income

  	
   

  	
  ·

  	
   

  	
  operating
  profit or net operating profit

  
	
  ·

  	
   

  	
  operating
  margin or profit margin

  	
   

  	
  ·

  	
   

  	
  return
  on operating revenue

  
	
  ·

  	
   

  	
  return
  on invested capital

  	
   

  	
  ·

  	
   

  	
  market
  segment share

  
	
  ·

  	
   

  	
  product
  release schedules

  	
   

  	
  ·

  	
   

  	
  new
  product innovation

  
	
  ·

  	
   

  	
  product
  ship targets

  	
   

  	
  ·

  	
   

  	
  customer
  satisfaction

  
	
  ·

  	
   

  	
  costs

  	
   

  	
   

  	
   

  	
   

  

 

13

 

Any
such performance goals and the period in which such goals are to be met shall
be determined by the Committee at the time of the grant and reflected in an
Agreement. Each Performance Share Award shall also be subject to such other
restrictions as the Committee may determine.

 

9.2  Delivery of
Performance Shares.  Certificates representing
Performance Shares shall be registered in the Award Recipient’s name but shall
remain in the physical custody of the Corporation until the Committee has
determined that the performance goals and other Stock Restrictions with respect
to such Performance Shares have been met.

 

9.3  Stockholder Rights.  The
recipient of a Performance Share Award shall be entitled to such rights of a
stockholder with respect to the Performance Shares as the Committee shall
determine, including the right to vote such shares of Stock, except that cash
and stock dividends with respect to the Performance Shares may, at the
discretion of the Committee, be either paid currently or withheld by the
Corporation for the Award Recipient’s account, and interest may be accrued on
the amount of cash dividends withheld at a rate and subject to such terms as
determined by the Committee.

 

9.4  Non-Transferability.  Prior
to the time shares of Stock issued pursuant to a Performance Share Award are
delivered to an Award Recipient, none of such shares may be sold, assigned,
bequeathed, transferred, pledged, hypothecated, or otherwise disposed of in any
way by the Award Recipient.

 

9.5  Lapse of
Restrictions.  In the event of the termination of
employment of an Award Recipient, prior to the lapse of Stock Restrictions, by
reason of death, total and permanent disability, or other discharge from
employment (other than discharge for Cause as defined in Section 6.6), the
Committee may, in its discretion, remove any Stock Restrictions on all or a
portion of a Performance Share Award, or determine the performance goals with
respect to all or a portion of a Performance Share Award to have been attained;
provided, however, that the
Committee shall not be entitled to exercise such discretion to the extent that
the ability to exercise such discretion would cause income recognized by an
Award Recipient with respect to a Performance Share Award to fail to be
deductible by the Corporation under Section 162(m) of the Code.

 

9.6  Limitations on
Performance Share Awards.  No employee may
receive Performance Share Awards representing more than [·] shares of Stock during any fiscal year of the
Corporation.

 

10.       Terms and Conditions Applicable to Director Stock Awards.

 

10.1  Grant of Director
Stock Awards.  As of the one (1) month anniversary
of the date of the first election to the Board of Directors, and as of the date
of each reelection to the Board of Directors, each Non-Employee Director shall
be granted a Director Stock Award. The Committee shall determine the number of
shares of Stock to 

 

14

 

be
covered by such Director Stock Award. All Director Stock Awards shall be
evidenced by an agreement containing such terms and conditions consistent with
the Plan as the Committee shall determine.

 

10.2  Vesting.  Each
Director Stock Award shall vest in full on the date immediately preceding the
first annual meeting of stockholders next following the date of grant; provided, however, that, except as
provided in the Plan, the recipient thereof continues to serve as a member of
the Board of Directors as of such date.

 

10.3  Forfeiture of
Director Stock Awards.  Except as
provided in the Plan, a recipient of a Director Stock Award shall forfeit any
unvested shares of Stock subject to the Director Stock Award, and all rights of
the Non-Employee Director to such unvested shares shall terminate without
payment of consideration by the Corporation, upon the termination of his or her
service as a member of the Board of Directors.

 

10.4  Stockholder Rights.  Except
as provided in Sections 10.5 and 10.7, a recipient of a Director Stock Award
shall be entitled to all rights of a stockholder with respect to the shares of
Stock issued pursuant to the Director Stock Award, including the right to
receive dividends and to vote such shares of Stock; provided, however, that stock dividends paid with respect to
such shares shall be restricted to the same extent as the underlying shares of
Stock issued pursuant to the Director Stock Award.

 

The
Committee shall cause a legend or legends to be placed on any certificate
representing shares issued pursuant to a Director Stock Award, which legend or
legends shall make appropriate reference to the terms of the Director Stock
Award and the Plan. The Committee shall also require that certificates
representing shares issued pursuant to Director Stock Awards remain in the
physical custody of the Corporation or an escrow holder until such shares have
vested in accordance with the terms of the Plan.

 

10.5  Non-Transferability.  Prior
to vesting, none of the shares of Stock issued pursuant to a Director Stock
Award may be sold, assigned, bequeathed, transferred, pledged, hypothecated, or
otherwise disposed of in any way by the recipient thereof.

 

10.6  Termination of
Service.  If a Non-Employee Director to whom a
Director Stock Award has been granted shall cease to serve as a director as a
result of (a) his or her death, (b) retiring from the Board of
Directors upon reaching Normal Retirement Age, (c) becoming totally and
permanently disabled, or (d) resigning with the approval of the Board of
Directors, all shares subject to such Director Stock Award shall be vested in
full, notwithstanding the provisions of Section 10.2, as of the date of
termination of service.

 

10.7  Deferral Election.  A Non-Employee
Director may elect to defer receipt of any Director Stock Award by filing the
appropriate deferral form with the Corporate Secretary on or before December 31st
of the calendar year prior to the calendar year in which such Director Stock
Award is to be made. Notwithstanding the foregoing, any person elected as a
Non-Employee Director for the first time shall be permitted to make 

 

15

 

his
or her first deferral election no later than twenty (20) days after such
election. In no event, however, shall any deferral be permitted to the extent
prohibited by applicable law.

 

11.       Acceleration
Upon a Change of Control.

 

Notwithstanding
any other provision of the Plan or any Option or Award granted hereunder, (a) any
Option granted hereunder and then outstanding shall become immediately
exercisable in full, (b) all Stock Restrictions shall immediately
terminate, and (c) all performance goals applicable to any Performance
Share Award shall be deemed attained (i) in the event that a tender offer
or exchange offer (other than an offer by the Corporation) for common stock of
the Corporation representing more than twenty five percent (25%) of the
combined voting power of the then outstanding voting securities of the Corporation
entitled to vote generally in the election of the Board of Directors (“Voting
Securities”) is made by any “person” within the meaning of Section 14(d) of
the Act and not withdrawn within ten (10) days after the commencement
thereof; provided, however, that
the Committee may by action taken prior to the end of such ten (10) day
period extend such ten (10) day period; and, provided further, that the Committee may by further action
taken prior to the end of such extended period declare (A) all Options
granted hereunder and then outstanding to be immediately exercisable in full, (B) all
Stock Restrictions to be immediately terminated, and (C) all performance
goals applicable to any Performance Share Award to be deemed attained; or (ii) in
the event of a Change in Control (as hereinafter defined).

 

Upon a Change in Control, the Committee may provide for the
cancellation of all Options and Stock Appreciation Rights then
outstanding.  Upon such cancellation, the
Company shall make, in exchange for each such Option or Stock Appreciation
Right, a payment either in (i) cash, (ii) shares of the successor
entity, or (iii) a combination of cash or shares, at the discretion of the
Committee, and in each case as the Committee shall, in its sole discretion
determine, in an amount per share subject to such Option or Stock Appreciation
Right equal to the excess, if any, of the Fair Market Value of a share of
Company Stock as of the date of the Change in Control over the per share
exercise price of such Option or Stock Appreciation Right.

 

For
purposes of this Section 11, a “Change in Control” means an event that
would be required to be reported (assuming such event has not been “previously
reported”) in response to Item 5.01(a) of the Current Report on Form 8-K,
as in effect on the effective date of the Plan, pursuant to Section 13 or
15(d) of the Act; provided, however,
that, without limitation, such a Change in Control shall be deemed to have
occurred at such time as (a) any “person” within the meaning of Section 14(d) of
the Act (other than the Corporation, a subsidiary of the Corporation, or an
employee benefit plan sponsored by any of the foregoing) becomes the “beneficial
owner” as defined in Rule 13d-3 thereunder, directly or indirectly, of
more than twenty five percent (25%) of the combined voting power of the then
outstanding Voting Securities, (b) during any two (2) year period,
individuals who constitute the Board of Directors (the “Incumbent Board”) as of
the beginning of the period cease for any reason to constitute at least a
majority thereof, provided that any person becoming a director during such
period whose 

 

16

 

election
or nomination for election by the Corporation’s stockholders was approved by a
vote of at least three-quarters (3/4) of the Incumbent Board
(either by a specific vote or by approval of the proxy statement of the
Corporation in which such person is named as a nominee for director without
objection to such nomination, other than in response to an actual or threatened
Change in Control or proxy contest) shall be, for purposes of this
clause (b), considered as though such person were a member of the
Incumbent Board, or (c) the approval by the Corporation’s stockholders of
the sale of all or substantially all of the stock or assets of the Corporation.
The Committee may adopt such procedures as to notice and exercise as may be
necessary to effectuate the acceleration of the exercisability of Options,
termination of Stock Restrictions, and attainment of performance goals as
described above.

 

12.       Share
Withholding; Delivery of Shares.

 

With
respect to any Option or Award, the Committee may, in its discretion and
subject to such rules as the Committee may adopt, permit or require any
Optionee or Award Recipient to satisfy, in whole or in part, any withholding
tax obligation which may arise in connection with an Option or Award by
electing to have or mandating that the Corporation withhold Stock having a Fair
Market Value (as of the date the amount of withholding tax is determined) equal
to the amount of withholding tax.

 

Wherever
in this Plan or under any Agreement an Optionee or Award Recipient is permitted
to pay the exercise price of an Option or Award or taxes relating to the
exercise of an Option or Award by delivering shares of Stock, the Optionee or
Award Recipient may, subject to procedures satisfactory to the Committee,
satisfy such delivery requirement by presenting proof of beneficial ownership
of such shares of Stock, in which case the Corporation shall treat the Option
or Award as exercised without further payment and shall withhold such number of
shares of Stock from the shares of Stock acquired by the exercise of the Option
or Award.

 

13.       No Right
to Continued Employment or Service.

 

Nothing
contained in the Plan or in any Option or Award granted or Agreement entered
into pursuant to the Plan shall confer upon any employee the right to continue
in the employ of the Corporation, any consultant the right to continue to
perform services for the Corporation, or any Non-Employee Director the right to
continue as a member of the Board of Directors or interfere with the right of
the Corporation to terminate such employee’s employment, such consultant’s
service, or Non-Employee Director’s service at any time.

 

14.       Time of
Granting Options and Awards.

 

An
Option or Award under the Plan shall be deemed to have been granted on the date
set forth in the Plan or resolutions of the Committee or Board of Directors
authorizing such grant.

 

17

 

15.       Adjustments
Upon Changes in Capitalization.

 

Notwithstanding
any other provision of the Plan, in the event of changes in the outstanding
Stock by reason of stock dividends, stock splits, recapitalizations,
combinations or exchanges of shares, corporate separations or divisions
(including, but not limited to, split-ups, split-offs, or spin-offs),
reorganizations (including, but not limited to, mergers or consolidations),
liquidations, extraordinary dividends or distributions, or other similar
events, the aggregate number and class of shares available under the Plan, the
number of shares subject to Director Stock Awards, the maximum number of shares
that may be subject to Options and Awards, and the terms of any outstanding
Options or Awards (including, without limitation, the number of shares subject
to an outstanding Option or Award and the price at which shares of Stock may be
issued pursuant to an outstanding Option) and of any Stock Units shall be
equitably adjusted by the Committee.

 

16.       Termination
and Amendment of the Plan.

 

16.1  Date of Plan
Termination.  Unless the Plan shall have been
terminated as hereinafter provided, no Option or Award shall be granted
hereunder after [·].

 

16.2  Amendment of Plan.  The
Board of Directors at any time, and from time to time, may amend the Plan.
However, except as provided in Section 15 of the Plan relating to
adjustments upon changes in the outstanding Stock, no amendment shall be
effective unless approved by the stockholders of the Corporation to the extent
stockholder approval is necessary to satisfy the requirements of Section 422
of the Code, any New York Stock Exchange, Nasdaq or other securities exchange
listing requirements, or other applicable law or regulation. Notwithstanding
the foregoing, the Board of Directors may, in its sole discretion, submit any
other amendment to the Plan for stockholder approval, including, but not
limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of
the Code and the regulations thereunder regarding the exclusion of
performance-based compensation from the limit on corporate deductibility of
compensation paid to certain executive officers.

 

16.3  No Material
Impairment of Rights.  No termination, modification, or
amendment of the Plan may, without the consent of an Optionee or Award
Recipient, adversely affect in any material manner the rights of such Optionee
or Award Recipient under any outstanding Option or Award.

 

17.       Amendment
of Options and Awards at the Discretion of the Committee.

 

The
terms of any outstanding Option or Award may be amended from time to time by
the Committee in its discretion in any manner that it deems appropriate,
including, without limitation, acceleration of the date of exercise of any
Option or Award, termination of Stock Restrictions as to any Award, or the
conversion of an Incentive Stock Option into a Non-Qualified Stock Option; provided, however, that no such amendment
shall adversely affect in any material manner any right of any Optionee or 

 

18

 

Award
Recipient under the Plan without his or her consent; and, provided further, that the Committee shall
not (a) amend any previously-issued Performance Share Award to the extent
that such amendment would cause income recognized by an Award Recipient with
respect to a Performance Share Award to fail to be deductible by the
Corporation under Section 162(m) of the Code or (b) except as
provided in Section 15 or if approved by the stockholders of the
Corporation, amend any previously-issued Option to reduce the purchase price
thereof whether by modification of the Option or by cancellation of the Option
in consideration of the immediate issuance of a replacement Option bearing a
reduced purchase price.

 

18.       Government
Regulations.

 

The
Plan and the grant and exercise of Options and Awards hereunder, and the
obligation of the Corporation to issue, sell, and deliver shares, as
applicable, under such Options and Awards, shall be subject to all applicable
laws, rules, and regulations. Notwithstanding any other provision of the Plan,
transactions under the Plan are intended to comply with the applicable
exemptions under Rule 16b-3 under the Act as to persons subject to the
reporting requirements of Section 16(a) of the Act with respect to
shares of Stock, and Options and Awards under the Plan shall be fashioned and
administered in a manner consistent with the conditions applicable under Rule 16b-3.

 

19.       Covenants
of the Corporation.

 

19.1  Availability of
Shares.  During the terms of the Options and
Awards, the Corporation shall keep available at all times the number of shares
of Stock required to satisfy such Options and Awards.

 

19.2  Securities Law
Compliance.  The Corporation shall seek to obtain
from each regulatory commission or agency having jurisdiction over the Plan
such authority as may be required to grant Options and Awards and to issue and
sell shares of Stock upon exercise, redemption, or satisfaction of the Options
and Awards; provided, however,
that this undertaking shall not require the Corporation to register under the
Securities Act the Plan, any Option or Award, or any Stock issued or issuable
pursuant to any such Option or Award. If, after reasonable efforts, the
Corporation is unable to obtain from any such regulatory commission or agency
the authority which counsel for the Corporation deems necessary for the lawful
issuance and sale of Stock under the Plan, the Corporation shall be relieved
from any liability for failure to issue and sell Stock related to such Options
or Awards unless and until such authority is obtained.

 

20.       Options
and Awards in Foreign Countries.

 

The
Committee shall have the authority and discretion to adopt such modifications,
procedures, and subplans as it shall deem necessary or desirable to comply with
the provisions of the laws of foreign countries in which the Corporation may
operate in order to assure the viability of the benefits of the Options and
Awards made to individuals employed in such countries and to meet the
objectives of the Plan.

 

19

 

21.       Governing
Law.

 

The
Plan shall be construed, regulated, and administered under the internal laws of
the State of Delaware.

 

22.       Stockholder
Approval.

 

The
Plan shall become effective if and as approved by the stockholders of the
Corporation.

 

20

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