Document:

Exhibit 4.01

 

SECOND AMENDMENT TO RIGHTS AGREEMENT

BETWEEN MONOLITHIC SYSTEM TECHNOLOGY, INC. AND 

WELLS FARGO BANK, N.A., AS RIGHTS AGENT

 

THIS SECOND AMENDMENT TO RIGHTS AGREEMENT
(this “Amendment”) is made as of December 14, 2004, by and between Monolithic
System Technology, Inc., a Delaware corporation (the “Company”) and Wells Fargo
Bank, N.A., formerly Wells Fargo Minnesota, N.A. (the “Rights Agent’).

 

WHEREAS, the Company and the Rights Agent are
parties to that certain Rights Agreement, dated as of October 11, 2000, as
amended by the First Amendment thereto made as of February 23, 2004 (as so
amended, the “Rights Agreement”) specifying the terms of the Rights (as defined
therein);

 

WHEREAS, the Company is aware that Ingalls
& Snyder LLC, a registered broker dealer and a registered investment
advisor (“I&S”) invests and holds securities for the accounts of its
Affiliates, Associates and certain retail customers for whom individual brokers
at I&S manage accounts over which they hold investment discretion;

 

WHEREAS, the Company understands that  I&S possesses shared dispositive  power but not voting power or any pecuniary
interest with respect to Common Shares acquired in the name of I&S for
customer accounts managed by individual brokers employed by I&S, other than
personal trading accounts belonging to such brokers (I&S and all Persons
acting as brokerage account managers at I&S are referred to collectively as
“I&S Parties and individually as an I&S Party), and that all Common
Shares held by I&S Parties are acquired solely for investment purposes and
not with a purpose or effect of changing or influencing control of the Company,
or in connection with or as a participant in any transaction having that
purpose or effect;

 

WHEREAS, the Board of Directors has
determined pursuant to the authorization granted to it under the Rights
Agreement that for purposes of the Rights Agreement the I&S Parties might
be deemed to beneficially own all Common Shares acquired by all and any of the
I&S Parties;

 

WHEREAS, the Board of Directors of the
Company has determined that it is in the interests of the Company’s
stockholders that the Rights Agreement be amended as set forth in this
Amendment to enable the acquisition by I&S Parties, collectively, of shared
beneficial ownership of Common Shares outstanding from time to time and that
such acquisitions will not cause the I&S Parties to become an Acquiring
Person or result in a Shares Acquisition Date or otherwise trigger the Rights;
provided that single account holders or retail customers and individual brokers
at I&S will remain subject to the 15% limitation with respect to their
personal accounts;

 

WHEREAS, the Company has delivered to the
Rights Agent the appropriate writing in accordance with Section 27 of the
Rights Agreement; and

 

WHEREAS, the Company desires to amend the
Rights Agreement in accordance with Section 27 of the Rights Agreement.

 

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

 

Section 1.                                          Defined Terms

 

Capitalized
terms that are not otherwise defined herein shall have the meanings ascribed to
them in the Rights Agreement.

 

 

Section 2.                                          Amendment to
Rights Agreement

 

(a)           Section
1(a) of the Rights Agreement, which sets forth the definition of “Acquiring
Person,” is hereby amended by adding the following new paragraph at the end of
Section 1(a):

 

Notwithstanding
anything in this Agreement that might otherwise be deemed to the contrary, none
of the I&S Parties, individually or collectively, shall be deemed to be an
Acquiring Person as long as none of the Common Shares held by any of the
I&S Parties are acquired or held with a purpose or effect of changing or
influencing control of the Company, or in connection with or as a participant
in any transaction having that purpose or effect, as determined in the sole
discretion of the Board of Directors of the Company.  This exclusion is limited to Common Shares as
to which I&S parties share dispositive power but have only limited voting
power of the type described in SEC Rule 13d-3(d)(2).  Any single account holder or retail customer
of I&S, and any single broker at I&S with respect to such broker’s
personal trading account, shall remain subject to the 15% limitation on
Beneficial Ownership contained in this Section 1(a).  For purposes of this paragraph shares of
Common Stock as to which an I&S Party has, or I&S Parties have,
dispositive power and only non-discretionary voting power (as defined in SEC
Rule 13d-3(d)(2)), with no “direct pecuniary interest” or “indirect pecuniary
interest” (as defined under SEC Rule 16a-1(a)) therein, shall be excluded from
the calculation of Beneficial Ownership under Section 1(a).

 

(b)           As
a consequence of the foregoing amendment to Section 1(a) of the Rights
Agreement, and subject to the condition stated in Section 1(a), the acquisition
or continued beneficial ownership by I&S Parties of Common Shares will not
entitle or permit the holders of the Rights to exercise the Rights or otherwise
affect the rights of the holders of Rights except as otherwise stated in
Section 1(a), as amended hereby, and will not constitute a Shares Acquisition
Date or a Trigger Event, nor will it result in a Distribution Date.

 

Section 3.                                          Effectiveness.

 

Except as set forth herein, the Rights
Agreement shall remain in full force and effect and shall be otherwise
unaffected by this Amendment.

 

Section 4.                                          Miscellaneous.

 

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

 

(b)           This Amendment 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.

 

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

 

(d)           The
Company hereby certifies to the Rights Agent that this Amendment is in
compliance with Section 27 of the Rights Agreement.

 

 

(e)           This Amendment 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.

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be duly executed as of the date first set forth above.

 

 

	
  MONOLITHIC SYSTEM TECHNOLOGY,
  INC. 

  	
  WELLS FARGO BANK, N.A. 

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:  

  	
  /s/ MARK VOLL

  	
   

  	
  By: 

  	
  /s/ SUSAN J. ROEDER 

  
	
  Name: 

  	
  Mark Voll 

  	
  Name: Susan J. Roeder 

  
	
  Title:  

  	
  Chief Financial Officer and Vice President

  	
  Title: Vice President

  
	
   

  	
  Finance and AdministrationExhibit 10.1

 

AMENDMENT TO THE

MOVIE GALLERY, INC.

2003 EMPLOYEE STOCK PURCHASE PLAN

 

 

                This Amendment to the Movie
Gallery, Inc. 2003 Employee Stock Purchase Plan (this “Amendment”) is effective
as of this 16th day of December, 2004, with reference to the following facts:

                A.            The Board of Directors of Movie Gallery, Inc., a Delaware
corporation (the “Company”), has determined that an amendment should be made to
the 2003 Employee Stock Purchase Plan of the Company (the “Plan”) in the best
interests of the Company and its stockholders.

                B.            The Board of Directors, acting by unanimous written
consent, have amended the Plan in accordance with Section 19 thereof and as set
forth herein.

Effective
as of the date hereof, the Plan is hereby amended as follows.

1.             Section 5(b) of the Plan is hereby
deleted in its entirety and replaced with the following:

“Payroll deductions shall
commence on the first payroll paid following the Offering Date and shall end on
the last payroll paid on or prior to the Purchase Date of the Offering Period
to which the Enrollment Documents are applicable, unless sooner terminated by
the participant as provided in Section 10.”

2.             Section 3(a) of the Plan is hereby
deleted in its entirety and replaced with the following:

“Any person who is an
Employee as of the Offering Date of a given Offering Period and who has been
employed by the Company or by one of its Designated Subsidiaries for at least
the past 12 months immediately prior to such Offering Date shall be eligible to
participate in such Offering Period under the Plan, subject to the requirements
of Section 5(a) and the limitations imposed by Section 423(b) of the Code.”

3.             Section 10(c) of the Plan is hereby
deleted in its entirety.

4.             The first sentence of Section 10(a)
of the Plan is hereby deleted in its entirety and replaced with the following:

“A participant may
withdraw all but not less than all the Contributions credited to his or her
account under the Plan at any time with respect to any Offering Period by
submitting a completed “Notice of Withdrawal” form to the Company’s Human
Resources Department or electronically completing the required

 

 

 

documentation provided by
the Company through the designated broker, as directed by the Company’s Human
Resources Department, provided that such documentation is received by the
Company at least 30 days prior to the last day of such Offering Period.”

	
   

  	
   

  	
   

  
	
   

  	
  MOVIE GALLERY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ S. Page Todd

  
	
   

  	
   

  	
  Name: S. Page Todd

  
	
   

  	
   

  	
  Title: Executive Vice President

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