Document:

Amended and Restated Rights Agrreement, by and between Avis Budget Group, Inc.
      and Mellon Investor Services LLC

    
      Exhibit
        4.1

    

     

    
      

      

    

     

     

    AVIS
      BUDGET GROUP, INC.

    

     

    and

    

     

    MELLON
      INVESTOR SERVICES LLC

     

    as
      Rights
      Agent

     

    

     

    Amended
      and Restated

    Rights
      Agreement

     

     

    Dated
      as
      of September 1, 2006 

     

    

    
      

      

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

     

    TABLE
      OF CONTENTS

    

      
        	 	 	 	 	
                Page

              	 
	 	
                Section
                  1.

              	
                Certain
                  Definitions

              	 	
                1

              	 
	 	
                Section
                  2.

              	
                Appointment
                  of Rights Agent

              	 	
                6

              	 
	 	
                Section
                  3.

              	
                Issuance
                  of Rights Certificates

              	 	
                7

              	 
	 	
                Section
                  4.

              	
                Form
                  of Rights Certificates

              	 	
                10

              	 
	 	
                Section
                  5.

              	
                Countersignature
                  and Registration

              	 	
                11

              	 
	 	
                Section
                  6.

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

              	 	
                11

              	 
	 	
                Section
                  7.

              	
                Exercise
                  of Rights; Purchase Price; Expiration Date of Rights

              	 	
                12

              	 
	 	
                Section
                  8.

              	
                Cancellation
                  and Destruction of Rights Certificates

              	 	
                14

              	 
	 	
                Section
                  9.

              	
                Reservation
                  and Availability of Capital Stock

              	 	
                14

              	 
	 	
                Section
                  10.

              	
                Preferred
                  Stock Record Date

              	 	
                16

              	 
	 	
                Section
                  11.

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

              	 	
                16

              	 
	 	
                Section
                  12. 

              	
                Certificate
                  of Adjusted Purchase Price or Number of Shares

              	 	
                24

              	 
	 	
                Section
                  13.

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

              	 	
                25

              	 
	 	
                Section
                  14.

              	
                Fractional
                  Rights and Fractional Shares

              	 	
                27

              	 
	 	
                Section
                  15.

              	
                Rights
                  of Action

              	 	
                28

              	 
	 	
                Section
                  16.

              	
                Agreement
                  of Rights Holders

              	 	
                29

              	 
	 	
                Section
                  17.

              	
                Rights
                  Certificate Holder Not Deemed a Stockholder

              	 	
                29

              	 
	 	
                Section
                  18.

              	
                Concerning
                  the Rights Agent

              	 	
                30

              	 
	 	
                Section
                  19.

              	
                Merger
                  or Consolidation or Change of Name of Rights Agent

              	 	
                30

              	 
	 	
                Section
                  20.

              	
                Duties
                  of Rights Agent

              	 	
                31

              	 
	 	
                Section
                  21.

              	
                Change
                  of Rights Agent

              	 	
                33

              	 
	 	
                Section
                  22.

              	
                Issuance
                  of New Rights Certificates

              	 	
                34

              	 
	 	
                Section
                  23. 

              	
                Redemption
                  and Termination

              	 	
                34

              	 
	 	
                Section
                  24.

              	
                Exchange

              	 	
                35

              	 
	 	
                Section
                  25.

              	
                Notice
                  of Certain Events

              	 	
                36

              	 
	 	
                Section
                  26.

              	
                Notices

              	 	
                37

              	 
	 	
                Section
                  27.

              	
                Supplements
                  and Amendments

              	 	
                38

              	 
	 	
                Section
                  28.

              	
                Successors

              	 	
                38

              	 
	 	
                Section
                  29.

              	
                Determinations
                  and Actions by the Board of Directors, etc

              	 	
                38

              	 
	 	
                Section
                  30.

              	
                Benefits
                  of this Agreement

              	 	
                39

              	 
	 	
                Section
                  31.

              	
                Severability

              	 	
                39

              	 
	 	
                Section
                  32. 

              	
                Governing
                  Law

              	 	
                39

              	 
	 	
                Section
                  33.

              	
                Counterparts

              	 	
                39

              	 
	 	
                Section
                  34.

              	
                Descriptive
                  Headings

              	 	
                39

              	 

      

    

    

       

    

     

    
      
        i

      

      
        
        

        
          

        

      

      
        
        

      

    

    

       

      EXHIBITS

       

    

    

      
        	 	
                Exhibit
                  A

              	
                --

              	
                Form
                  of Certificate of Designation, Preferences and Rights

                of
                  Series A Junior Participating Preferred Stock 

              
	 	
                Exhibit
                  B

              	
                --

              	
                Form
                  of Rights Certificate

              
	 	
                Exhibit
                  C

              	
                --

              	
                Form
                  of Summary of Rights

              

      

     

    
      
        ii

      

      
        
        

        
          

        

      

      
        
        

      

    

    AMENDED
      AND RESTATED RIGHTS
      AGREEMENT

     

    AMENDED
      AND RESTATED RIGHTS AGREEMENT, dated as of September 1, 2006 (this "Agreement"),
      between Avis Budget Group, Inc., a Delaware corporation (the "Company"), and
      Mellon Investor Services LLC, a New Jersey limited liability company (the
      "Rights Agent").

     

     

    W
      I T
      N E S S E T H:

    WHEREAS,
      on July 13, 2006 (the "Rights Dividend Declaration Date"), the Board of
      Directors of the Company (the "Board") 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 July 21, 2006 (the "Record Date"),
      and
      has authorized the issuance of one Right (as such number may hereinafter be
      adjusted pursuant to the provisions of Section 11(p) hereof) for each share
      of
      Common Stock 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

     

    1.1.
       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 fifteen
      percent (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, (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
      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-half of one percent (0.5%) 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 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 successor report) which Schedule 13D does not state any
      intention to or reserve the right to control or 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    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), who inadvertently becomes the Beneficial Owner of fifteen percent (15%)
      or more of the shares of Common Stock then outstanding (but less than twenty
      percent (20%)) 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 10 Business Days or
      breaches or violates such certification, then such Person shall become an
      Acquiring Person immediately after such 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)  "Agreement"
      shall mean this Agreement as it may from time to time be supplemented, amended,
      renewed, restated or extended pursuant to the applicable provisions
      hereof.

     

     

    (e)  A
      Person
      shall be deemed the "Beneficial Owner" of, and shall be deemed to "beneficially
      own," any securities:

     

     

    (i)  which
      such Person or any of such Person's Affiliates or Associates, directly or
      indirectly, 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 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    11(i)
      hereof in connection with an adjustment made with respect to any Original
      Rights;

     

     

    (ii)  which
      such Person or any of such Person's Affiliates or Associates, directly or
      indirectly, has the right to vote or dispose of or has "beneficial ownership"
      of
      (as determined pursuant to Rule 13d-3 of the General Rules and Regulations
      under
      the Exchange Act), including pursuant to any agreement, arrangement or
      understanding, whether or not in writing; provided,
      however,
      that a
      Person shall not be deemed the "Beneficial Owner" of, or to "beneficially own,"
      any security under this subparagraph (ii) as a result of an agreement,
      arrangement or understanding (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)  which
      are
      beneficially owned, directly or indirectly, by any other Person (or any
      Affiliate or Associate thereof) with which such Person (or any of such Person's
      Affiliates or Associates) has any agreement, arrangement or understanding
      (whether or not in writing), for the purpose of acquiring, holding, voting
      (except pursuant to a revocable proxy as described in the proviso to
      subparagraph (ii) of this paragraph (e)) or disposing of any voting securities
      of the Company; provided,
      however,
      that
      nothing in this paragraph (e) shall cause a Person engaged in business as an
      underwriter of securities to be the "Beneficial Owner" of, or to "beneficially
      own," any securities acquired through such Person's participation in good faith
      in a firm commitment underwriting until the expiration of forty days after
      the
      date of such acquisition, and then only if such securities continue to be owned
      by such Person at such expiration of forty days.

     

     

    (f)  "Board"
      shall have the meaning set forth in the preamble to this Agreement.

     

     

    (g)  "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.

     

     

    (h)  "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.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (i)  "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.

     

     

    (j)  "Common
      Stock Equivalents" shall have the meaning set forth in Section 11(a)(iii)
      hereof.

     

     

    (k)  "Company"
      shall
      have the meaning set forth in the preamble to this Agreement until a successor
      corporation or entity shall have become such or until a Principal Party (as
      hereinafter defined) shall assume, and thereafter be liable for, all obligations
      and duties of the Company hereunder pursuant to the applicable provisions of
      this Agreement, and thereafter, "Company" shall mean such successor or Principal
      Party, respectively.

     

     

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

     

     

    (m)  "Current
      Value" shall have the meaning set forth in Section 11(a)(iii)
      hereof.

     

     

    (n)  "Distribution
      Date" shall have the meaning set forth in Section 3(a) hereof.

     

     

    (o)  "Equivalent
      Preferred Stock" shall have the meaning set forth in Section 11(b)
      hereof.

     

     

    (p)  "Exchange
      Act" shall mean the Securities Exchange Act of 1934, as amended.

     

     

    (q)  "Exchange
      Ratio" shall have the meaning set forth in Section 24 hereof.

     

     

    (r)  "Expiration
      Date" shall have the meaning set forth in Section 7(a) hereof.

     

     

    (s)  
      "Final
      Expiration Date" shall mean the date upon which the Rights expire and shall
      be
      the earlier of (i) 5:00 P.M., New York City time, on the date that the votes
      of

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    the
      Company's stockholders, with respect to the Company's 2008 annual meeting of
      stockholders, are certified, unless the continuation of the Rights is approved
      by the stockholders of the Company by a vote of the majority of the shares
      present and entitled to vote at a stockholders meeting at the Company's 2008
      annual meeting of stockholders (in which case clause (ii) shall govern) or
      (ii)
      5:00 P.M., New York City time on July 13, 2016, in each case, unless the Rights
      are previously redeemed, exchanged or terminated.

     

     

    (t)  "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.

     

     

    (u)  "Preferred
      Stock" shall mean shares of Series A Junior Participating Preferred Stock,
      par
      value $0.01, 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.

     

     

    (v)  "Principal
      Party" shall have the meaning set forth in Section 13(b) hereof.

     

     

    (w)  "Purchase
      Price" shall have the meaning set forth in Section 4(a) hereof.

     

     

    (x)  "Record
      Date" shall have the meaning set forth in the preamble of this
      Agreement.

     

     

    (y)  "Redemption
      Price" shall have the meaning set forth in Section 23(a) hereof.

     

     

    (z)  "Rights"
      shall have the meaning set forth in the preamble of this Agreement.

     

     

    (aa)  "Rights
      Agent" shall have the meaning set forth in the preamble of this
      Agreement.

     

     

    (bb)  "Rights
      Certificate" shall have the meaning set forth in Section 3(a)
      hereof.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (cc)  "Rights
      Dividend Declaration Date" shall have the meaning set forth in the preamble
      of
      this Agreement.

     

     

    (dd)  "Section
      11(a)(ii) Event" shall mean any event described in Section 11(a)(ii)
      hereof.

     

     

    (ee)  "Section
      11(a)(ii) Trigger Date" shall have the meaning set forth in Section 11(a)(iii)
      hereof.

     

     

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

     

     

    (gg)  "Spread"
      shall have the meaning set forth in Section 11(a)(iii) hereof.

     

     

    (hh)  "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.

     

     

    (ii)  "Subsidiary"
      shall mean, with reference to any Person, any corporation or other entity of
      which an amount of securities or other ownership interest having ordinary voting
      power sufficient to elect at least a majority of the directors or other Persons
      having similar functions of such corporation or other entity are at the time,
      directly or indirectly, beneficially owned, or otherwise controlled by such
      Person.

     

     

    (jj)  "Substitution
      Period" shall have the meaning set forth in Section 11(a)(iii)
      hereof.

     

     

    (kk)  "Summary
      of Rights" shall have the meaning set forth in Section 3(b) hereof.

     

     

    (ll)  "Trading
      Day" shall have the meaning set forth in Section 11(d)(i) hereof.

     

     

    (mm)  "Triggering
      Event" shall mean any Section 11(a)(ii) Event or any Section 13
      Event.

     

     

    Section
      2.  Appointment
      of Rights Agent

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    2.1. 
       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.

     

    Section
      3.  Issuance
      of Rights Certificates.

     

    (a)  Until
      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 before
      the
      occurrence of the Distribution Date) after the Stock Acquisition Date (or,
      if
      the tenth 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 Business Day (or such specified or
      unspecified later date as may be determined by the Board 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 published or sent or given within the
      meaning of Rule 14d-2(a) of the General Rules and Regulations under the Exchange
      Act, if, upon consummation thereof, such Person would become an Acquiring Person
      (the earlier of (i) and (ii) being herein referred to as the "Distribution
      Date"), (x) the Rights will be evidenced (subject to the provisions of paragraph
      (b) or (c) of this Section 3) by the balances
      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. The Company
      shall promptly notify the Rights Agent in writing upon the occurrence of the
      Distribution Date. Until such notice is received by the Rights Agent, the Rights
      Agent may presume conclusively for all purposes that the Distribution Date
      has
      not occurred.

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (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. 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 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 which 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 Avis Budget Group, Inc.
      (the "Company") entitles the holder hereof to certain Rights as set forth in
      the
      Amended and Restated Rights Agreement between the Company and the Rights Agent
      thereunder (the "Rights Agent") dated as of September 1, 2006, 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.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    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 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 Amended and Restated Rights Agreement between Avis Budget
      Group, Inc. (the "Company") and the Rights Agent thereunder (the "Rights Agent")
      dated as of September 1, 2006, 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 this certificate. The Rights Agent will
      mail
      to the holder of this certificate a copy of the Rights Agreement, as in effect
      on the date of mailing, without charge, promptly after receipt of a written
      request therefor. Under certain circumstances set forth in the Rights Agreement,
      Rights 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 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.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    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 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 which the Board, in its
      sole
      discretion, has determined is part of a plan, arrangement or understanding
      which
      has as a primary purpose or effect the avoidance of Section 7(e) hereof, and
      any
      Rights Certificate issued pursuant to Section 6 or Section 11 hereof upon
      transfer, exchange, replacement or adjustment of any other Rights Certificate
      referred to in this sentence, shall contain (to the extent feasible) the
      following legend:

     

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

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Section
      5.  Countersignature
      and Registration .

     

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

     

     

    (b)  Following
      the Distribution Date, 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 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    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 hereof 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 from the holder of a Rights
      Certificate 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 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) 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 $80, shall be subject
      to
      adjustment from time to time as provided in Sections 11 and 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 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    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 Sections 7(f) and 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 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 (whether or not in writing)
      regarding the transferred Rights or (B) a transfer which the Board of Directors
      of the Company has determined is part of a plan, 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    arrangement
      or understanding which has as a primary purpose or effect the avoidance of
      this
      Section 7(e), shall become null and void without any further action and no
      holder of such Rights shall have any rights whatsoever with respect to such
      Rights, whether under any provision of this Agreement or otherwise. The Company
      shall use all reasonable efforts to insure that the provisions of this Section
      7(e) and Section 4(b) hereof are complied with, but shall have no liability
      to
      any holder of Rights Certificates or any other Person as a result of its failure
      to make any determinations with respect to an Acquiring Person or any of its
      Affiliates, Associates or transferees hereunder.

     

     

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

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    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 "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 which may be payable in
      respect of the issuance or delivery of the Rights Certificates
      and of any certificates for a number of one one-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 which may be payable in respect of any transfer or delivery
      of
      Rights Certificates to a Person other than, or the issuance or delivery of
      a
      number of one one-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
      

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    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-entry account system shall be
      dated, the date upon which the Rights Certificate evidencing such Rights was
      duly surrendered and payment of the Purchase Price (and all applicable transfer
      taxes) was made; provided,
      however,
      that if
      the date of such surrender and payment is a date upon which the 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 or split the outstanding shares of Preferred Stock, (C) combine or
      consolidate the outstanding shares of Preferred Stock into a smaller number
      of
      shares, through a reverse stock split or otherwise, 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, split, combination, consolidation 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 

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    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, split, combination, consolidation or reclassification. If an event
      occurs which would require an adjustment under both this Section 11(a)(i) and
      Section 11(a)(ii) hereof, the adjustment provided for in this Section 11(a)(i)
      shall be in addition to, and shall be made prior to, any adjustment required
      pursuant to Section 11(a)(ii) hereof.

     

     

    (ii)  In
      the
      event any Person shall, at any time after the Rights 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 later of the occurrence of such event and the Record
      Date, 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 treasury shares and shares of Common Stock which are
      authorized by the Company's Amended and Restated Certificate of Incorporation,
      as amended, 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, which the Board 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)

     

    
      
        
        

      

      
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    debt
      securities of the Company, (5) other assets, or (6) any combination of the
      foregoing, having an aggregate value equal to the Current Value (less the amount
      of any reduction in the Purchase Price), where such aggregate value has been
      determined by the Board based upon the advice of a nationally recognized
      investment banking firm selected by the Board; provided,
      however,
      that if
      the Company shall not have made adequate provision to deliver value pursuant
      to
      clause (B) above within thirty (30) days following the later of (x) the first
      occurrence of a Section 11(a)(ii) Event and (y) the date on which the Company's
      right of redemption pursuant to Section 23(a) expires (the later of (x) and
      (y)
      being referred to herein as the "Section 11(a)(ii) Trigger Date"), then the
      Company shall be obligated to deliver, upon the surrender for exercise of a
      Right and without requiring payment of the Purchase Price, shares of Common
      Stock (to the extent available) and then, if necessary, cash, which shares
      and/or cash have an aggregate value equal to the Spread. For purposes of the
      preceding sentence, the term "Spread" shall mean the excess of (i) the Current
      Value over (ii) the Purchase Price. If the Board determines in good faith that
      it is likely that sufficient additional shares of 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 

     

    
      
        
        

      

      
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    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 which the aggregate offering price of the total number of shares of
      Preferred Stock and/or Equivalent Preferred Stock so to be offered (and/or
      the
      aggregate initial conversion price of the convertible securities so to be
      offered) would purchase at such Current Market Price, and the denominator of
      which shall be the number of shares of Preferred Stock outstanding on such
      record date, plus the number of additional shares of Preferred Stock and/or
      Equivalent Preferred Stock to be offered for subscription or purchase (or into
      which the convertible securities so to be offered are initially convertible).
      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 which would then be in effect if
      such
      record date had not been fixed.

     

     

    (c)  In
      case
      the Company shall fix a record date for a distribution to all holders of
      Preferred Stock (including any such distribution made in connection with a
      consolidation or merger in which the Company is the 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 which would have been in effect if such record date had not
      been
      fixed.

     

     

    (d)(i) For
      the
      purpose of any computation hereunder, other than computations made pursuant
      to
      Section 11(a)(iii) hereof, the Current Market Price per share of 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 

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    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,
      consolidation, reverse stock split or reclassification of such Common Stock,
      and
      the ex-dividend date for such dividend or distribution, or the record date
      for
      such subdivision, combination, consolidation, reverse stock split or
      reclassification shall not have occurred prior to the commencement of the
      requisite thirty (30) Trading Day or ten (10) Trading Day period, as set forth
      above, then, and in each such case, the Current Market Price shall be properly
      adjusted to take into account ex-dividend trading. The closing price for each
      day shall be the last sale price, regular way, or, in case no such sale takes
      place on such day, the average of the closing bid and asked prices, regular
      way,
      in either case as reported in the principal consolidated transaction reporting
      system with respect to securities listed or admitted to trading on the New
      York
      Stock Exchange or, if the shares of Common Stock are not listed or admitted
      to
      trading on the New York Stock Exchange, as reported in the principal
      consolidated transaction reporting system with respect to securities listed
      on
      the principal national securities exchange 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 the National Association
      of Securities Dealers Automated Quotation System ("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. 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 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, 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) 

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

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

     

     

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

     

     

    (f)  If
      as a
      result of an adjustment made pursuant to Section 11(a)(ii) or Section 13(a)
      hereof, the holder of any Right thereafter exercised shall become entitled
      to
      receive any shares of capital stock other than 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 

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    number
      of
      one one-thousandths of a share of Preferred Stock (calculated to the nearest
      one-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 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-thousandth of a share which were expressed in the initial Rights
      Certificates issued hereunder.

     

     

    (k)  Before
      taking any action that would cause an adjustment reducing the Purchase Price
      below the then 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 which may, in the opinion of its counsel, be necessary
      in order that the 

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    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 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 which 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 which complies with Section 11(o)
      hereof), (ii) merge with or into any other Person (other than a Subsidiary
      of
      the Company in a transaction which complies with Section 11(o) hereof), or
      (iii)
      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 50% of the assets
      or
      earning power of the Company and its Subsidiaries (taken as a whole) to any
      other Person or Persons (other than the Company and/or any of its Subsidiaries
      in one or more transactions each of which complies with Section 11(o) hereof),
      if (x) at the time of or immediately after such consolidation, merger or sale
      there are any rights, warrants or other instruments or securities outstanding
      or
      agreements in effect which would substantially diminish or otherwise eliminate
      the benefits intended to be afforded by the Rights 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.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

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

     

     

    (p)  Anything
      in this Agreement to the contrary notwithstanding, except as provided in the
      following sentence, 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 of Common Stock, or (iii) combine
      the outstanding shares of Common Stock into a smaller number of shares, through
      a reverse stock split or otherwise, 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 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. Notwithstanding
      the foregoing, in the event that, on or prior to March 31, 2007, the Company
      effects, through a reverse stock split or otherwise, a combination of the
      outstanding shares of Common Stock into a smaller number of shares, there shall
      not be, upon completion of such combination, any adjustment to the number of
      Rights associated with each share of Common Stock outstanding
      immediately after such combination as compared to the number of
      Rights associated with each share of Common Stock outstanding
      immediately before such combination (for the sake of clarity, it being
      understood that any Rights associated with a share of Common Stock outstanding
      immediately after such combination that would otherwise result in a greater
      number of Rights associated with a share Common Stock outstanding immediately
      after such combination as compared to such number of Rights associated with
      a
      share of Common Stock outstanding immediately before to such combination, shall
      automatically be cancelled upon the completion of such combination without
      any
      action or payment of any kind). In addition, the Purchase Price and Redemption
      Price per Right provided herein shall remain unchanged. For example, if,
      immediately prior to completion of such combination, there were one Right (with
      a Purchase Price of $80 and a Redemption Price of $.001) associated with each
      outstanding share of Common Stock, then, immediately after completion of such
      combination, there will be one Right (with a Purchase Price of $80 and a
      Redemption Price of $.001) associated with each share of Common Stock then
      outstanding.

     

     

    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 (or, if prior to the Distribution Date, to each holder of
      a
      share of Common Stock) in 

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    accordance
      with Section 26 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 ofAssets,
      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 which 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 which 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 50% of the assets, cash flow or
      earning power of the Company and its Subsidiaries (taken as a whole) to any
      Person or Persons (other than the Company or any Subsidiary of the Company
      in
      one or more transactions each of which complies with Section 11(o) hereof),
      then, and in each such case, proper provision shall be made so that: (i) each
      holder of a Right, except as provided in Section 7(e) hereof, shall thereafter
      have the right to receive, upon the exercise thereof at the then current
      Purchase Price in accordance with the terms of this Agreement, such number
      of
      validly authorized and issued, fully paid, non-assessable and freely tradeable
      shares of Common Stock of the Principal Party (as such term is hereinafter
      defined), not subject to any liens, encumbrances, rights of first refusal or
      other adverse claims, as shall be equal to the result obtained by (1)
      multiplying the then current Purchase Price by the number of one one-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 

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    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) hereof, 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) hereof, the Person that is the party receiving the greatest portion of
      the
      assets, cash flow or earning power transferred pursuant to such transaction
      or
      transactions; provided,
      however,
      that in
      any such case, (1) if the 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 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 which have not been issued or reserved for issuance to
      permit the exercise in full of the Rights in accordance with this Section 13
      and
      unless prior thereto the Company and such Principal Party shall have executed
      and delivered to the Rights Agent confirming
      that the requirements of Section 13(a) and Section 13(b) hereof shall promptly
      be performed in accordance with their terms 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;

     

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

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

     

     

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

     

     

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

     

     

    Section
      14.  Fractional
      Rights and Fractional Shares.

     

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

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    (b)  The
      Company shall not be required to issue fractions of shares of Preferred Stock
      (other than fractions which are integral multiples of one one-thousandth of
      a
      share of Preferred Stock) upon exercise of the Rights or to distribute
      certificates which evidence fractional shares of Preferred Stock (other than
      fractions which are integral multiples of one one-thousandth of a share of
      Preferred Stock). In lieu of fractional shares of Preferred Stock that are
      not
      integral multiples of one one-thousandth of a share of Preferred Stock, the
      Company may pay to the registered holders of Rights Certificates at the time
      such Rights are exercised as herein provided an amount in cash equal to the
      same
      fraction of the current market value of one one-thousandth of a share of
      Preferred Stock. For purposes of this Section 14(b), the current market value
      of
      one one-thousandth of a share of Preferred Stock shall be one one-thousandth
      of
      the closing price of a share of Preferred Stock (as determined pursuant to
      Section 11(d)(ii) hereof) for the Trading Day immediately prior to the date
      of
      such exercise.

     

     

    (c)  Following
      the occurrence of a Triggering Event, the Company shall not be required to
      issue
      fractions of shares of Common Stock upon exercise of the Rights or to distribute
      certificates which 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.

     

     

    Section
      15.  Rights
      of Action.
      All
      rights of action in respect of this Agreement, excepting the rights of action
      given to the Rights Agent under Section 18 hereof, are vested in the respective
      registered holders of the Rights Certificates (and, prior to the Distribution
      Date, the registered holders of the 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.

     

    
      
        
        

      

      
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    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,
      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 which may at any time be issuable on the exercise of the Rights
      represented thereby, nor shall anything contained herein or in any Rights
      Certificate be construed to confer upon the holder of any Rights Certificate,
      as
      such, any of the rights of a stockholder of the Company or any right to vote
      for
      the election of directors or upon any matter submitted to stockholders at any
      meeting thereof, or to give or withhold consent to any corporate action, or
      to
      receive notice of meetings or other actions affecting stockholders (except
      as
      provided in Section 25 hereof), or to receive dividends or subscription rights,
      or 

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    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 (each as determined by a court
      of
      competent jurisdiction) 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, 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 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.

     

     

    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.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    (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 opinion of such counsel shall be full and complete
      authorization and protection to the Rights Agent as to any action taken or
      omitted by it in good faith and in accordance with such opinion.

     

     

    (b)  Whenever
      in the performance of its duties under this 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 Chairman
      of
      the Board, the Chief Executive Officer, the President, 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 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 gross negligence, bad
      faith or willful misconduct (each as determined by a court of competent
      jurisdiction), provided,
      however,
      that
      the Rights Agent shall under no circumstances be liable for indirect,
      consequential, special or punitive damages hereunder. Anything herein to the
      contrary notwithstanding, any liability of the Rights Agent under this Agreement
      will be limited in the aggregate to an amount equal to three times the amount
      of
      fees paid by the Company to the Rights Agent.

     

     

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

     

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    (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 Chairman of the
      Board, the Chief Executive Officer, the President, any Vice President, the
      Secretary, any Assistant Secretary, the Treasurer or any Assistant Treasurer
      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.
      Nothing herein shall preclude the Rights Agent from acting in any other capacity
      for the Company or for any other Person.

     

     

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

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    (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 (other than internal costs incurred by the Rights Agent
      in providing services to the Corporation in the ordinary course of its business
      as Rights Agent) 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, which is authorized under
      such laws to exercise corporate trust, stock transfer or stockholder services
      powers and which has at the time of its appointment as Rights Agent a combined
      capital and surplus of at least $50,000,000 or (b) an affiliate of a 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

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    to
      give
      any notice provided for in this Section 21, however, or any defect therein,
      shall not affect the legality or validity of the resignation or removal of
      the
      Rights Agent or the appointment of the successor Rights Agent, as the case
      may
      be.

     

    Section
      22.  Issuance
      of New Rights Certificates.
      Notwithstanding any of the provisions of this Agreement or of the Rights to
      the
      contrary, the Company may, at its option, issue new Rights Certificates
      evidencing Rights in such form as may be approved by the Board to reflect any
      adjustment or change in the Purchase Price and the number or kind or class of
      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, 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
      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 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 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.

     

     

    (b)  Immediately
      upon the action of the Board ordering the redemption of the Rights, evidence
      of
      which shall have been filed with the Rights Agent and without any further action
      and without any notice, the right to exercise the Rights will terminate and
      the
      only right thereafter of the holders of Rights shall be to receive the
      Redemption Price for each Right 

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    so
      held.
      Promptly after the action of the Board ordering the redemption of the Rights,
      the Company shall give notice of such redemption to the Rights Agent and the
      holders of the then outstanding Rights by mailing such notice to all such
      holders at each holder's last address as it appears upon the registry books
      of
      the Rights Agent or, prior to the Distribution Date, on the registry books
      of
      the transfer agent for the Common Stock. Any notice which is mailed in the
      manner herein provided shall be deemed given, whether or not the holder receives
      the notice. Each such notice of redemption will state the method by which the
      payment of the Redemption
      Price
      will be made.

     

     

    Section
      24.  Exchange.

     

    (a)  The
      Board
      may, at its option, at any time after any Person becomes an Acquiring Person,
      exchange all or part of the then outstanding and exercisable Rights (which
      shall
      not include Rights that have
      become 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 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 50% or more of the
      Common Stock of the Company then outstanding.

     

     

    (b)  Immediately
      upon the action of the Board ordering the exchange of any Rights pursuant to
      subsection (a) of this Section 24 and without any further action and without
      any
      notice, the right to exercise such Rights shall terminate and the only right
      thereafter of 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 which is mailed in the manner
      herein provided shall be deemed given, whether or not the holder receives the
      notice. Each such notice of exchange will state the method by which the exchange
      of the Common Stock for Rights will be effected and, in the event of any partial
      exchange, the number of Rights which will be exchanged. Any partial exchange
      shall be effected pro rata based on the number of Rights (other than Rights
      which have become void pursuant to the provisions of Section 7(e) hereof) held
      by each holder of Rights.

     

     

    (c)  In
      any
      exchange pursuant to this Section 24, the Company, at its option, may substitute
      Preferred Stock (or Equivalent Preferred Stock, as such term is defined in
      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 

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    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 which 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 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 which
      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, which shall specify the record date
      for the purposes of such stock dividend, distribution of rights or warrants,
      or
      the date on which such reclassification, consolidation, merger, sale, transfer,
      liquidation, dissolution, or winding up is to take place and the date of
      participation therein by the holders of the shares of Preferred Stock, if any
      such date is to be 

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    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:

     

    Avis
      Budget Group, Inc.

    6
      Sylvan
      Way, Parsippany, New Jersey 07054

    Attention:
      General Counsel

     

    With
      a
      copy to:

     

    Skadden,
      Arps, Slate, Meagher & Flom LLP

    Four
      Times Square

    New
      York,
      NY 10036

    Attention:
      Daniel Wolf, Esq. 

    

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

     

     

    Mellon
      Investor Services LLC

    480
      Washington Boulevard

    Jersey
      City, NJ 07310

    Attention:
      Client Relationship Executive

     

    With
      a
      copy to:

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    Mellon
      Investor Services LLC

    480
      Washington Boulevard

    Jersey
      City, NJ 07310

    Attention:
      General Counsel

     

    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 which 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
      which the Company may deem necessary or desirable and which shall not adversely
      affect the interests of the holders of Rights Certificates (other than an
      Acquiring Person or an Affiliate or Associate of an Acquiring Person). Upon
      the
      delivery of a certificate from an appropriate officer of the Company which
      states that the proposed supplement or amendment is in compliance with the
      terms
      of this Section 27, the Rights Agent shall execute such supplement or amendment.
      Prior to the Distribution Date, the interests of the holders of Rights shall
      be
      deemed coincident with the interests of the holders of Common Stock.
      Notwithstanding anything herein to the contrary, this Agreement may not be
      amended (other than pursuant to clauses (i) or (ii) of the preceding sentence)
      at a time when the Rights are not redeemable. Notwithstanding anything herein
      to
      the contrary, the Rights Agent may, but shall not be obligated to, enter into
      any supplement or amendment that affects the Rights Agent's own rights, duties,
      obligations or immunities under this Agreement.

     

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

     

    Section
      29.  Determinations
      and Actions by the Board of Directors, etc.
      For all
      purposes of this Agreement, any calculation of the number of 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. The Board shall have
      the
      exclusive power and authority to administer this Agreement and to exercise
      all
      rights and powers specifically granted to the Board or to the Company, or as
      may
      be necessary or advisable in the administration of this Agreement, including,
      without limitation, the right and power to (i) interpret the provisions of
      this
      Agreement, and (ii) make all determinations deemed necessary or 

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    advisable
      for the administration of this Agreement (including a determination to redeem
      or
      not redeem the Rights or to amend the Agreement). All such actions,
      calculations, interpretations and determinations (including, for purposes of
      clause (y) below, all omissions with respect to the foregoing) which are done
      or
      made by the Board in good faith, shall (x) be final, conclusive and binding
      on
      the Company, the Rights Agent, the holders of the Rights and all other parties,
      and (y) not subject the Board, or any of the directors on the Board to any
      liability to the holders of the Rights.

     

    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 determines in its good faith
      judgment that severing the invalid language from this Agreement would adversely
      affect the purpose or effect of this Agreement, the right of redemption set
      forth in Section 23 hereof shall be reinstated and shall not expire until the
      Close of Business on the tenth Business Day following the date of such
      determination by the Board. Without limiting the foregoing, if any provision
      requiring a specific group of directors of the Company to act is held to by
      any
      court of competent jurisdiction or other authority to be invalid, void or
      unenforceable, such determination shall then be made by the Board of Directors
      of the Company in accordance with applicable law and the Company's Amended
      and
      Restated Certificate of Incorporation and 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.

    

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    

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

     

    

    
      	 	
              Avis
                Budget Group, Inc.

            
	
              Attest:

               

              By: 
                /s/ Karen C. Sclafani            

              Name: 
                Karen C. Sclafani

              Title:   
                EVP & General Counsel 

            	
               

               

              By:
                /s/ Jean M. Sera                

              Name: 
                Jean M. Sera

              Title:   
                SVP & Secretary 

               

               

               

               

            
	 	
              Mellon
                Investor Services LLC

            
	
              Attest:

               

              By:
                /s/Deborah Bass                

              Name: 
                Deborah Bass

              Title: 
                Client Relationship Executive

            	
               

               

              By:/s/Sajoo
                J. Samuel                 

              Name: 
                Sajoo J. Samuel

              Title:   
                Director, Client Relationship Management

               

            

    

    

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

     

    Exhibit
      A

    

    

     

    FORM
      OF

    CERTIFICATE
      OF DESIGNATION, PREFERENCES AND

    RIGHTS
      OF
      SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

     

    of

     

    Avis
      Budget Group, Inc.

     

     

    Pursuant
      to Section 151 of the General Corporation Law

    of
      the
      State of Delaware

     

    We,
      the
      undersigned officers of Avis Budget Group, Inc., a Delaware corporation (the
      "Corporation"), pursuant to the provisions of Sections 103 and 151 of the
      General Corporation Law of the State of Delaware, do hereby state and certify
      that pursuant to the authority vested in the Board of Directors of the
      Corporation by the Amended and Restated Certificate of Incorporation of the
      Corporation, the Board of Directors on July 13, 2006, duly adopted the following
      resolution creating a series of 2,500,000 shares of Preferred Stock designated
      as Series A Junior Participating Preferred Stock: 

     

    RESOLVED,
      that pursuant to the authority vested in the Board of Directors of this
      Corporation in accordance with the provisions of its Amended and Restated
      Certificate of Incorporation, a series of Preferred Stock of the Corporation
      be
      and it hereby is created, and that 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 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
      2,500,000.

     

    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
15th
      day of
      March, June, September and December in each year (each such date being

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    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 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, through a reverse
      stock split or otherwise, 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; provided that notwithstanding clause (iii) above, no such adjustment
      shall occur with respect to any combination of the Corporation's outstanding
      shares of Common Stock, through a reverse stock split or otherwise, occurring
      on
      or prior to March 31, 2007.

     

     

    (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 $.10 per share on the Series
      A
      Junior Participating Preferred Stock shall nevertheless be payable on such
      subsequent Quarterly Dividend Payment Date. 

     

     

    (C)  Dividends
      shall begin to accrue and be cumulative on outstanding shares of Series 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

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

    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 thirty (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 one
      thousand (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, through
      a
      reverse stock split or otherwise, 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; provided that notwithstanding
      clause (iii) above, no such adjustment shall occur with respect to any
      combination of the Corporation's outstanding shares of Common Stock, through
      a
      reverse stock split or otherwise, occurring on or prior to March 31,
      2007.

     

     

    (B)  Except
      as
      otherwise provided herein or by law, the holders of shares of Series A Junior
      Participating Preferred 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") which shall extend until such time when all accrued
      and unpaid dividends for all previous quarterly dividend periods and for the
      current quarterly dividend period on all shares of Series 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 

     

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

    any
      annual meeting of stockholders, and thereafter at annual meetings of
      stockholders, provided that such voting right shall not 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 which 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. 

     

     

    (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 20 days and not later than
      60 days after such order or request or in default of the calling of such meeting
      within 60 days after such order or request, such meeting may be called on
      similar notice by any stockholder or stockholders owning in the aggregate not
      less than 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 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

     

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

    Stock
      shall continue in office until their successors shall have been elected by
      such
      holders or until the expiration of the default period, and (y) any vacancy
      in
      the Board of Directors may (except as provided in Paragraph (C)(ii) of this
      Section 3) be filled by vote of a majority of the remaining directors
      theretofore elected by the holders of the class of stock which elected the
      director whose office shall have become vacant. References in this Paragraph
      (C)
      to directors elected by the holders of a particular class of stock shall include
      directors elected by such directors to fill vacancies as provided in clause
      (y)
      of the foregoing sentence. 

     

     

    (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 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;
      

     

     

    
      
        
        

      

      
        A-5

        
          

        

      

      
        
        

      

    

    (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

     

     

    (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 

     

    
      
        
        

      

      
        A-6

        
          

        

      

      
        
        

      

    

    payment
      of the full amount of the Series A Liquidation Preference and the Common
      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, which 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, through a reverse stock split
      or
      otherwise, 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; provided that notwithstanding clause (iii) above, no such adjustment
      shall occur with respect to any combination of the Corporation's outstanding
      shares of Common Stock, through a reverse stock split or otherwise, occurring
      on
      or prior to March 31, 2007.

     

    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,
      through a reverse stock split or otherwise, 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 number of shares of Common Stock that were
      outstanding immediately prior to such event; provided that notwithstanding
      clause (iii) above, no such adjustment shall occur with 

     

    
      
        
        

      

      
        A-7

        
          

        

      

      
        
        

      

    

    respect
      to any combination of the Corporation's outstanding shares of Common Stock,
      through a reverse stock split or otherwise, occurring on or prior to March
      31,
      2007.

     

    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, the Amended and Restated Certificate of Incorporation of the
      Corporation nor this Certificate of Designation shall be amended in any manner
      which 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
      which shall entitle the holder, in proportion to such holder's fractional
      shares, to exercise voting rights, receive dividends, participate in
      distributions and to have the benefit of all other rights of holders of Series
      A
      Junior Participating Preferred Stock.

     

    IN
      WITNESS WHEREOF, we have executed and subscribed this Certificate and do affirm
      the foregoing as true under the penalties of perjury this 13th day of July
      2006.

     

    

      
        	 	
                 

                 

                _______________________________

                Name:

                Title:
                  

                 

              
	
                Attest:

                 

                By:__________________________________

                Name:

                Title:

              	 

      

    

     

     

     

    
      
        
           

          

        

        
        

      

      
        A-8

        
          

        

      

      
        
        

        
        

      

    

    
 

     

    Exhibit
      B

    

    

     

    [Form
      of
      Rights Certificate]

     

    (b)  Certificate
      No. R-________
      Rights

     

    

     

    NOT
      EXERCISABLE AFTER THE EARLIER OF (I) 5:00 P.M., NEW YORK CITY TIME, ON THE
      DATE
      THAT THE VOTES OF THE COMPANY'S STOCKHOLDERS, WITH RESPECT TO THE COMPANY'S
      2008
      ANNUAL MEETING OF STOCKHOLDERS, ARE CERTIFIED, UNLESS THE CONTINUATION OF THE
      RIGHTS IS APPROVED BY THE STOCKHOLDERS OF THE COMPANY BY A VOTE OF THE MAJORITY
      OF THE SHARES PRESENT AND ENTITLED TO VOTE AT A STOCKHOLDERS MEETING AT THE
      COMPANY'S 2008 ANNUAL MEETING OF STOCKHOLDERS (IN WHICH CASE CLAUSE (II) SHALL
      GOVERN) OR (II) 5:00 P.M., NEW YORK CITY TIME ON JULY 13, 2016, IN EACH CASE,
      UNLESS THE RIGHTS ARE PREVIOUSLY REDEEMED, EXCHANGED OR TERMINATED. THE RIGHTS
      ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $.001 PER RIGHT
      ON
      THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS
      BENEFICIALLY OWNED BY AN ACQUIRING PERSON (AS SUCH TERM IS DEFINED IN THE RIGHTS
      AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID.
      [THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY
      OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR
      ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS
      AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED
      HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e)
      OF SUCH AGREEMENT.]1 

     

     

    Rights
      Certificate

     

     

    Avis
      Budget Group, Inc.

     

    This
      certifies that ______________________, or registered assigns, is the registered
      owner of the number of Rights set forth above, each of which entitles the owner
      

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

    thereof,
      subject to the terms, provisions and conditions of the Rights Agreement, dated
      as of July 13, 2006 (the "Rights Agreement"), as it may be amended, restated,
      renewed or extended from time to time, between Avis Budget Group, Inc., a
      Delaware corporation (the "Company"), and Mellon Investor Services LLC, a New
      Jersey limited liability company (the "Rights Agent"), to purchase from the
      Company at any time prior to the earlier of (i) 5:00 P.M., New York City time,
      on the date that the votes of the Company's stockholders, with respect to the
      Company's 2008 annual meeting of stockholders, are certified, unless the
      continuation of the Rights is approved by the stockholders of the Company by
      a
      vote of the majority of the shares present and entitled to vote at a
      stockholders meeting at the Company's 2008 annual meeting of stockholders (in
      which case clause (ii) shall govern) or (ii) 5:00 P.M., New York City time
      on
      July 13, 2016, in each case, unless the Rights are previously redeemed,
      exchanged or terminated, 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 $80 per
      one
      one-thousandth of a share (the "Purchase Price"), upon presentation and
      surrender of this Rights Certificate with the Form of Election to Purchase
      and
      related Certificate duly executed. The number of Rights evidenced by this Rights
      Certificate (and the number of shares which may be purchased upon exercise
      thereof) set forth above, and the Purchase Price per share set forth above,
      are
      the number and Purchase Price as of July 13, 2006, based on the Preferred Stock
      as constituted at such date. The Company reserves the right to require prior
      to
      the occurrence of a Triggering Event (as such term is defined in the Rights
      Agreement) that a number of Rights be exercised so that only whole shares of
      Preferred Stock will be issued.

     

    Upon
      the
      occurrence of a Section 11(a)(ii) Event (as such term is defined in the Rights
      Agreement), if the Rights evidenced by this Rights Certificate are beneficially
      owned by (i) an Acquiring Person or an Affiliate or Associate of any such
      Acquiring Person (as such terms are defined in the Rights Agreement), (ii)
      a
      transferee of any such Acquiring Person, Associate or Affiliate, or (iii) under
      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, which may be purchased upon
      the
      exercise of the Rights evidenced by this Rights Certificate are subject to
      modification and adjustment upon the happening of certain events, including
      Triggering Events.

     

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

     

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

    This
      Rights Certificate, with or without other Rights Certificates, upon surrender
      at
      the office of the Rights Agent designated for such purpose, may be exchanged
      for
      another Rights Certificate or Rights Certificates of like tenor and date
      evidencing Rights entitling the holder to purchase a like aggregate number
      of
      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 may be redeemed by the Company at its option at any time prior
      to
      the earlier of the Close of Business on (A) the tenth Business Day following
      the
      Stock Acquisition Date (as such time period may be extended pursuant to the
      Rights Agreement), and (B) the Final Expiration Date at a redemption price
      of
      $0.001 per Right. 

     

    No
      fractional shares of Preferred Stock will be issued upon the exercise of any
      Right or Rights evidenced hereby (other than fractions which are integral
      multiples of one one-thousandth of a share of Preferred Stock, which may, at
      the
      election of the Company, be evidenced by depositary receipts), but in lieu
      thereof a cash payment will be made, as provided in the Rights Agreement. 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.

     

    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 which may at any time be issuable on the exercise
      hereof, nor shall anything contained in the Rights Agreement or herein be
      construed to confer upon the holder hereof, as such, any of the rights of a
      stockholder of the Company or any right to vote for the election of directors
      or
      upon any matter submitted to stockholders at any meeting thereof, or to give
      consent to or withhold consent from any corporate action, or, to receive notice
      of meetings or other actions affecting stockholders (except as provided in
      the
      Rights Agreement), or to receive dividends or subscription rights, or otherwise,
      until the Right or Rights evidenced by this Rights Certificate shall have been
      exercised as provided in the Rights Agreement.

     

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

     

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

    

    

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

     

    Dated
      as
      of _________ __, ____.

     

    
      	
              ATTEST:

            	
              Avis
                Budget Group, Inc.

            
	
               

              __________________________________

              Secretary
                

            	
               

              By:_______________________________

              Title:
                

            
	 	 
	
              Countersigned:

               

              Mellon
                Investor Services LLC

               

              By:_______________________________

              Authorized
                Signature

            	 

    

     

    [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:

     

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

    

    

     

    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:
                

            

    

    

    (d)  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:
      AVIS
      BUDGET GROUP, INC.

     

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

     

    Please
      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:

     

    

    
      
        
        

      

      
        B-8

        
          

        

      

      
        
        

      

    

     

    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-9

        
          

        

      

      
        
        

        
        

      

    

     

    Exhibit
      C

     

    FORM
      OF

    SUMMARY
      OF RIGHTS TO PURCHASE

    PREFERRED
      STOCK

     

    On
      July
      13, 2006, the Board of Directors (the "Board") of Avis Budget Group, Inc. (the
      "Company") authorized and declared a dividend distribution of one right (a
      "Right") for each outstanding share of Common Stock, par value $0.01 per share,
      of the Company (the "Common Stock"), to stockholders of record at the close
      of
      business on July 21, 2006 (the "Record Date"). Each Right entitles the
      registered holder to purchase from the Company a unit consisting of one
      one-thousandth of a share (a "Unit") of Series A Junior Participating Preferred
      Stock, par value $0.01 per share (the "Preferred Stock") at a purchase price
      of
      $80 per Unit, subject to adjustment (the "Purchase Price"). The description
      and
      terms of the Rights are set forth in a Rights Agreement (the "Rights
      Agreement"), dated as of July 13, 2006, between the Company and Mellon Investor
      Services LLC, a New Jersey limited liability company, as Rights Agent.

     

    Initially,
      the Rights will be attached to the shares of Common Stock underlying the
      balances indicated in the book-entry account system of the transfer agent for
      the Common Stock or, in the case of certificated shares, all Common Stock
      certificates representing shares then outstanding, and no separate rights
      certificates ("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 (a "Distribution Date") will occur upon
      the
      earlier of (i) 10 business days (or such later date as the Board shall
      determine) following a public announcement that a person or group of affiliated
      or associated persons (an "Acquiring Person") has acquired beneficial ownership
      of fifteen percent (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 balances 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 or, in the case
      of
      certificated shares, the Common Stock certificates, and will be transferred
      with
      and only with such shares or, in the case of certificated shares, Common Stock
      certificates, (ii) confirmation and account statements sent to the holders
      of
      shares of Common Stock in book-entry form or, in the case of certificated
      shares, new Common Stock certificates issued after the Record Date, will contain
      a notation incorporating the Rights Agreement by reference and (iii) the
      transfer of any shares of Common Stock or, in the case of certificated shares,
      certificates for Common Stock, outstanding will also constitute the transfer
      of
      the Rights associated with such shares of Common Stock or, in the case of
      certificated shares, the Common Stock represented by such certificates. 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. 

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    The
      Rights are not exercisable until the Distribution Date and will expire on the
      earlier of (i) 5:00 P.M., New York City time, on the date that the votes of
      the
      Company's stockholders, with respect to the Company's 2008 annual meeting of
      stockholders, are certified, unless the continuation of the Rights is approved
      by the stockholders of the Company by a vote of the majority of the shares
      present and entitled to vote at a stockholders meeting at the Company's 2008
      annual meeting of stockholders (in which case clause (ii) shall govern) or
      (ii)
      5:00 P.M., New York City time on July 13, 2016, in each case, unless the Rights
      are previously redeemed, exchanged or terminated.

     

    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. 

     

    In
      the
      event that a person or group of affiliated or associated persons 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 $80 per Right, each Right not owned by an
      Acquiring Person (or by certain related parties) following the event set forth
      in the preceding paragraph would entitle its holder to purchase $160 worth
      of
      Common Stock (or other consideration, as noted above) for $80. Assuming that
      the
      Common Stock had a per share value of $16 at such time, the holder of each
      valid
      Right would be entitled to purchase ten shares of Common Stock for $80.

     

    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) other than pursuant to a pro rata dividend and/or distribution to all
      of
      the then current holders of Common Stock, 50% or more of the Company's assets,
      cash flow or earning power is sold or transferred, each holder of a Right
      (except Rights which have previously been voided as set forth above) shall
      thereafter have the right to receive, upon exercise, 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 50% or more of the outstanding Common Stock, the Board
      may exchange the Rights (other than Rights owned by such person or group which
      have become void), in whole or in part, for Common Stock or Preferred Stock
      at
      an exchange ratio of one share of Common Stock, or one one-thousandth of a
      share
      of Preferred Stock (or of a share 

     

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

    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 Units 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).

     

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

     

    Until
      a
      Right is exercised, the holder thereof, as such, will have no separate rights
      as
      a stockholder of the Company, including, without limitation, the right to vote
      or to receive dividends in respect of Rights. 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 which do not adversely affect the interests
      of
      holders of Rights, or to shorten or lengthen any time period under the Rights
      Agreement. The foregoing notwithstanding, no amendment may be made at such
      time
      as the Rights are not redeemable. 

     

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

     

    
      
        
        

      

      
        C-3Certificate of Designation, Preferences and Rights of Series A Junior Participating
      Preferred Stock

    Exhibit
      4.2

     

     

    CERTIFICATE
      OF DESIGNATION, PREFERENCES AND

    RIGHTS
      OF
      SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

     

    of

     

    Avis
      Budget Group, Inc.

     

     

    Pursuant
      to Section 151 of the General Corporation Law

    of
      the
      State of Delaware

     

    We,
      the
      undersigned officers of Avis Budget Group, Inc., a Delaware corporation (the
      "Corporation"), pursuant to the provisions of Sections 103 and 151 of the
      General Corporation Law of the State of Delaware, do hereby state and certify
      that pursuant to the authority vested in the Board of Directors of the
      Corporation by the Amended and Restated Certificate of Incorporation of the
      Corporation, the Board of Directors on July 13, 2006, duly adopted the following
      resolution creating a series of 2,500,000 shares of Preferred Stock designated
      as Series A Junior Participating Preferred Stock: 

     

    RESOLVED,
      that pursuant to the authority vested in the Board of Directors of this
      Corporation in accordance with the provisions of its Amended and Restated
      Certificate of Incorporation, a series of Preferred Stock of the Corporation
      be
      and it hereby is created, and that 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 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
      2,500,000.

     

    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
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 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, through a reverse
      stock split or otherwise, 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; provided that notwithstanding clause (iii) above, no such adjustment
      shall occur with respect to any combination of the Corporation's outstanding
      shares of Common Stock, through a reverse stock split or otherwise, occurring
      on
      or prior to March 31, 2007.

     

     

    (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 $.10 per share on the Series
      A
      Junior Participating Preferred Stock shall nevertheless be payable on such
      subsequent Quarterly Dividend Payment Date. 

     

     

    (C)  Dividends
      shall begin to accrue and be cumulative on outstanding shares of Series 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 thirty (30) days
      prior
      to the date fixed for the payment thereof. 

     

    Section
      1. 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 one
      thousand (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, through
      a
      reverse stock split or otherwise, 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; provided that notwithstanding
      clause (iii) above, no such adjustment shall occur with respect to any
      combination of the Corporation's outstanding shares of Common Stock, through
      a
      reverse stock split or otherwise, occurring on or prior to March 31,
      2007.

     

     

    (B)  Except
      as
      otherwise provided herein or by law, the holders of shares of Series A Junior
      Participating Preferred 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") which shall extend until such time when all accrued
      and unpaid dividends for all previous quarterly dividend periods and for the
      current quarterly dividend period on all shares of Series 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 such voting 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    right
      shall not 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 which
      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. 

     

     

    (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 20 days and not later than
      60 days after such order or request or in default of the calling of such meeting
      within 60 days after such order or request, such meeting may be called on
      similar notice by any stockholder or stockholders owning in the aggregate not
      less than 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 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 which elected the director whose office shall have become vacant.
      References in this Paragraph (C) to directors elected by the holders of a
      particular class of stock shall include directors elected by such directors
      to
      fill vacancies as provided in clause (y) of the foregoing sentence.

     

     

    (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 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
      2. 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

     

     

    (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
      3. 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
      4. 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 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, which 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, through a reverse stock split
      or
      otherwise, 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; provided that notwithstanding clause (iii) above, no such adjustment
      shall occur with respect to any combination of the Corporation's outstanding
      shares of Common Stock, through a reverse stock split or otherwise, occurring
      on
      or prior to March 31, 2007.

     

    Section
      5. 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,
      through a reverse stock split 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    or
      otherwise, 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
      number of shares of Common Stock that were outstanding immediately prior to
      such
      event; provided that notwithstanding clause (iii) above, no such adjustment
      shall occur with respect to any combination of the Corporation's outstanding
      shares of Common Stock, through a reverse stock split or otherwise, occurring
      on
      or prior to March 31, 2007.

     

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

     

    Section
      7. 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
      8. Amendment.
      At any
      time when any shares of Series A Junior Participating Preferred Stock are
      outstanding, the Amended and Restated Certificate of Incorporation of the
      Corporation nor this Certificate of Designation shall be amended in any manner
      which 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
      9. Fractional
      Shares.
      Series
      A Junior Participating Preferred Stock may be issued in fractions of a share
      which shall entitle the holder, in proportion to such holder's fractional
      shares, to exercise voting rights, receive dividends, participate in
      distributions and to have the benefit of all other rights of holders of Series
      A
      Junior Participating Preferred Stock.

     

    Section
      10. Effectiveness.
      This
      Certificate of Designation shall be effective as of 5:01 p.m. Eastern Standard
      Time on September 1, 2006.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    IN
      WITNESS WHEREOF, we have executed and subscribed this Certificate and do affirm
      the foregoing as true under the penalties of perjury this 1st day of September
      2006. 

     

    
      
        
          	 	 	 	
                	 
	 	 	
                   

                	/s/
                  Jean M. Sera	 
	 	 	 	
                  Jean
                    M. Sera, Senior
                    Vice President and Secretary

                	 

        

      

      
 

    

    
      
        
          	 Attest:
	 	
                	 
	 	
                   

                	/s/
                  Karen C. Sclafani	 
	 	 	
                  Karen
                    C. Sclafani, Executive Vice President and General Counsel

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