Document:

Rights Agreement

 Exhibit 4.1 
  

 Rights Agreement 
 Dated as of December 4, 2006 
 Between 
 Medivation, Inc. 
 and

 American Stock Transfer & Trust Company, 
 as Rights Agent 
  

 RIGHTS AGREEMENT 
 Rights Agreement, dated as of December 4, 2006, between Medivation, Inc., a Delaware corporation (the “Company”), and American Stock Transfer & Trust Company, a New York corporation, as
Rights Agent (the “Rights Agent”). 
 RECITALS 
 WHEREAS, on December 4, 2006, the Board of Directors of the Company adopted this Agreement, and has authorized and declared a dividend of one
preferred share purchase right (a “Right”) for each Common Share (as defined in Section 1.6) of the Company outstanding at the close of business on January 3, 2007 (the “Record Date”) and has authorized
and directed the issuance of one Right (subject to adjustment as provided herein) with respect to each Common Share that shall become outstanding between the Record Date and the earliest of the Distribution Date and the Expiration Date (as such
terms are defined in Sections 3.1 and 7.1), each Right initially representing the right to purchase one one-thousandth (subject to adjustment) of a share of Series C Junior Participating Preferred Stock (the “Preferred Shares”) of
the Company having the rights, powers and preferences set forth in the form of Certificate of Designation attached hereto as Exhibit A, upon the terms and subject to the conditions hereinafter set forth provided,
however, that Rights may be issued with respect to Common Shares that shall become outstanding after the Distribution Date and prior to the Expiration Date in accordance with Section 22. 
 NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties hereby agree as follows: 
 Section 1. Certain Definitions. For purposes of this Agreement, the following terms have the meanings indicated: 
 1.1. “Acquiring Person” shall mean any Person (as such term is hereinafter defined) who or which, together with all
Affiliates and Associates (as such terms are hereinafter defined) of such Person, shall be the Beneficial Owner (as such term is hereinafter defined) of 20% or more of the Common Shares of the Company then outstanding but shall not include
(i) an Exempt Person (as such term is hereinafter defined) or (ii) if, as of the date hereof, any Person is the Beneficial Owner of 20% or more of the Common Shares outstanding (an “Existing Holder”), such Existing Holder
shall not be or become an “Acquiring Person” unless and until such time as such Existing Holder shall become the Beneficial Owner of one or more additional Common Shares of the Company (other than pursuant to a dividend or distribution
paid or made by the Company on the outstanding Common Shares in Common Shares or pursuant to a split or subdivision of the outstanding Common Shares), unless, upon becoming the Beneficial Owner of such additional Common Shares, such Existing Holder
is not then the Beneficial Owner of 20% or more of the Common Shares then outstanding. Notwithstanding the foregoing, no Person shall become an “Acquiring Person” as the result of an acquisition of Common Shares by the Company which, by
reducing the number of shares outstanding, increases the proportionate number of shares beneficially owned by such Person to 20% or more of the Common Shares of the Company then outstanding; provided, however, that if a Person shall become
the Beneficial Owner of 20% or more of the Common Shares of the Company then outstanding solely by 

 
reason of share purchases by the Company and shall, after such share purchases by the Company, become the Beneficial Owner of one or more additional Common
Shares of the Company (other than pursuant to a dividend or distribution paid or made by the Company on the outstanding Common Shares in Common Shares or pursuant to a split or subdivision of the outstanding Common Shares), then such Person shall be
deemed to be an “Acquiring Person” unless upon becoming the Beneficial Owner of such additional shares of Common Stock such Person does not beneficially own 20% or more of the shares of Common Stock then outstanding. Notwithstanding the
foregoing, if the Board of Directors of the Company determines in good faith that a Person who would otherwise be an “Acquiring Person,” as defined pursuant to the foregoing provisions of this Section 1.1, has become such
inadvertently (including, without limitation, because (A) such Person was unaware that it beneficially owned a percentage of Common Stock that would otherwise cause such Person to be an “Acquiring Person” or (B) such Person was
aware of the extent of its Beneficial Ownership of Common Stock but had no actual knowledge of the consequences of such Beneficial Ownership under this Agreement), and without any intention of changing or influencing control of the Company, and such
Person divests as promptly as practicable a sufficient number of Common Shares so that such Person would no longer be an Acquiring Person, as defined pursuant to the foregoing provisions of this Section 1.1, then such Person shall not be deemed
to be or have become an “Acquiring Person” at any time for any purposes of this Agreement. For all purposes of this Agreement, any calculation of the number of Common Shares outstanding at any particular time, including for purposes of
determining the particular percentage of such outstanding Common Shares 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 Securities
Exchange Act of 1934, as amended (the “Exchange Act”), as in effect on the date of this Agreement. 
 1.2. “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, as in effect on the date of this
Agreement. 
 1.3. 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 beneficially owns, directly or indirectly (as determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Exchange Act as in effect on the date of this Agreement); 
 (ii) which such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has (A) the right to acquire
(whether such right is exercisable immediately, or only after the passage of time, compliance with regulatory requirements, fulfillment of a condition or otherwise) pursuant to any agreement, arrangement or understanding, whether or not in writing
(other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities), or upon the exercise of conversion rights, exchange rights, rights, warrants or options, or
otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, (w) securities tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such
Person’s Affiliates or Associates until such tendered securities are accepted for purchase or exchange, (x) securities which such Person has a right to 

  

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acquire upon the exercise of Rights at any time prior to the time that any Person becomes an Acquiring Person, (y) securities issuable upon the exercise
of Rights from and after the time that any Person becomes an Acquiring Person if such Rights were acquired by such Person or any of such Person’s Affiliates or Associates prior to the Distribution Date or pursuant to Section 3.1 or
Section 22 (“Original Rights”) or pursuant to Section 11.9 or Section 11.15 with respect to an adjustment to Original Rights or (z) securities which such Person or any of such Person’s Affiliates or
Associates may acquire, does or do acquire or may be deemed to acquire or may be deemed to have the right to acquire, pursuant to any merger or other acquisition agreement between the Company and such Person (or one or more of such Person’s
Affiliates or Associates) if prior to such Person becoming an Acquiring Person the Board of Directors of the Company has approved such agreement and determined that such Person shall not be or be deemed to be the beneficial owner of such securities
within the meaning of this Section 1.3; or (B) the right to vote 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 clause (B) if the agreement, arrangement or understanding to vote such security (1) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or
consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations of the Exchange Act and (2) is not also then reportable 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) and
with respect to which such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona
fide public offering of securities), whether or not in writing, for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy or consent as described in the proviso to Section 1.3(ii)(B)) or disposing of any securities of
the Company; 
 provided, however, that no Person who is an officer, director or employee of an Exempt Person shall be deemed, solely by reason
of such Person’s status or authority as such, to be the “Beneficial Owner” of, to have “Beneficial Ownership” of or to “beneficially own” any securities that are “beneficially owned” (as defined in this
Section 1.3), including, without limitation, in a fiduciary capacity, by an Exempt Person or by any other such officer, director or employee of an Exempt Person. 
 1.4. “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. 
 1.5. “close of
business” on any given date shall mean 5:00 p.m., New York time, on such date; provided, however, that if such date is not a Business Day it shall mean 5:00 p.m., New York time, on the next succeeding Business Day. 

1.6. “Common Shares” when used with reference to the Company shall mean the shares of common stock, par value
$0.01 per share, of the Company. “Common Shares” when used with reference to any Person other than the Company shall mean the capital stock with the 

  

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greatest voting power, or the equity securities or other equity interest having power to control or direct the management, of such other Person or, if such
Person is a Subsidiary (as such term is hereinafter defined) of another Person, the Person or Persons which ultimately control such first-mentioned Person, and which has issued and outstanding such capital stock, equity securities or equity
interest. 
 1.7. “Exempt Person” shall mean the Company, any Subsidiary of the Company, in each case
including, without limitation, its fiduciary capacity, or any employee benefit plan of the Company or of any Subsidiary of the Company or any entity or trustee holding shares of capital stock of the Company for or pursuant to the terms of any such
plan, or for the purpose of funding other employee benefits for employees of the Company or any Subsidiary of the Company. 
 1.8. “Person” shall mean any individual, partnership, joint venture, limited liability company, firm, corporation, unincorporated association, trust or other entity, and shall include any successor (by merger or
otherwise) of such entity. 
 1.9. “Shares Acquisition Date” shall mean the first date of public
announcement (which, for purposes of this definition, shall include, without limitation, the filing of a report pursuant to Section 13(d) of the Exchange Act or pursuant to a comparable successor statute) by the Company or an Acquiring Person
that an Acquiring Person has become such or that discloses information which reveals the existence of an Acquiring Person or such earlier date as a majority of the Board of Directors shall become aware of the existence of an Acquiring Person.

 1.10. “Subsidiary” of any Person shall mean any corporation or other entity of which a majority of
the voting power of the voting equity securities or equity interests is owned, of record or beneficially, directly or indirectly, by such Person. 
 1.11. A “Trigger Event” shall be deemed to have occurred upon any Person becoming an Acquiring Person. 
 1.12. The following terms shall have the meanings defined for such terms in the Sections set forth below: 
  

			
	 Term
	  	Section
	 Adjustment Shares
	  	11.1.2
	 common stock equivalent
	  	11.1.3
	 Company
	  	Recitals
	 current per share market price
	  	11.4
	 Current Value
	  	11.1.3
	 Distribution Date
	  	3.1
	 equivalent preferred stock
	  	11.2
	 Exchange Act
	  	1.1
	 Exchange Consideration
	  	27
	 Existing Holder
	  	1.1
	 Expiration Date
	  	7.1
	 Final Expiration Date
	  	7.1

  

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	 Nasdaq
	  	9
	 Original Rights
	  	1.3
	 Preferred Shares
	  	Recitals
	 Principal Party
	  	13.2
	 Purchase Price
	  	4
	 Record Date
	  	Recitals
	 Redemption Date
	  	7.1
	 Redemption Price
	  	23.1
	 Right
	  	Recitals
	 Right Certificate
	  	3.1
	 Rights Agent
	  	Recitals
	 Security
	  	11.4
	 Spread
	  	11.1.3
	 Substitution Period
	  	11.1.3
	 Summary of Rights
	  	3.2
	 Trading Day
	  	11.4

 Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act
as agent for the Company and the holders of the Rights (who, in accordance with Section 3, shall prior to the Distribution Date also be the holders of the Common Shares) 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. In the event the Company appoints one or more co-Rights Agents, the respective duties of the Rights Agent and any
co-Rights Agent shall be as the Company shall determine. Contemporaneously with such appointment, if any, the Company shall notify the Rights Agent thereof. 
 Section 3. Issuance of Right Certificates. 
 3.1. Rights Evidenced by Share
Certificates. Until the earlier of (i) the tenth day after the Shares Acquisition Date or (ii) the tenth Business Day after the date of the commencement of, or first public announcement of the intent of any Person (other than an Exempt
Person) to commence, a tender or exchange offer the consummation of which would result in any Person (other than an Exempt Person) becoming the Beneficial Owner of Common Shares aggregating 20% or more of the then outstanding Common Shares of the
Company (the earlier of (i) and (ii) being herein referred to as the “Distribution Date”), (x) the Rights (unless earlier expired, redeemed or terminated) will be evidenced (subject to the provisions of
Section 3.2) by the certificates for Common Shares registered in the names of the holders thereof (which certificates for Common Shares shall also be deemed to be Right Certificates) and not by separate certificates, and (y) the Rights
(and the right to receive certificates therefor) will be transferable only in connection with the transfer of the underlying Common Shares. The preceding sentence notwithstanding, prior to the occurrence of a Distribution Date specified as a result
of an event described in clause (ii) (or such later Distribution Date as the Board of Directors of the Company may select pursuant to this sentence), the Board of Directors may postpone, one or more times, the Distribution Date which would
occur as a result of an event described in clause (ii) beyond the date set forth in such clause (ii). Nothing herein shall permit such a postponement of a Distribution Date after a Person becomes an Acquiring Person. As 

  

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soon as practicable after the Distribution Date, the Company will prepare and execute, the Rights Agent will countersign and the Company (or, if requested,
the Rights Agent) will send, by first-class, postage-prepaid mail, to each record holder of Common Shares as of the close of business on the Distribution Date (other than any Acquiring Person or any Associate or Affiliate of an Acquiring Person), at
the address of such holder shown on the records of the Company, one or more certificates for Rights, in substantially the form of Exhibit B hereto (a “Right Certificate”), evidencing one Right (subject to adjustment as provided
herein) for each Common Share so held. As of the Distribution Date, the Rights will be evidenced solely by such Right Certificates. 
 3.2. Summary of Rights. On the Record Date or as soon as practicable thereafter, the Company will send or cause to be sent a copy of a Summary of Rights to Purchase Preferred Shares, in substantially the form attached hereto as
Exhibit C (the “Summary of Rights”), by first-class, postage-prepaid mail, to each record holder of Common Shares as of the close of business on the Record Date at the address of such holder shown on the records of the Company. With
respect to certificates for Common Shares outstanding as of the close of business on the Record Date, until the Distribution Date (or the earlier Expiration Date), the Rights will be evidenced by such certificates for Common Shares registered in the
names of the holders thereof together with a copy of the Summary of Rights and the registered holders of the Common Shares shall also be registered holders of the associated Rights. Until the Distribution Date (or the earlier Expiration Date), the
surrender for transfer of any certificate for Common Shares outstanding at the close of business on the Record Date, with or without a copy of the Summary of Rights, shall also constitute the transfer of the Rights associated with the Common Shares
represented thereby. 
 3.3. New Certificates After Record Date. Certificates for Common Shares which become
outstanding (whether upon issuance out of authorized but unissued Common Shares, disposition out of treasury or transfer or exchange of outstanding Common Shares) after the Record Date but prior to the earliest of the Distribution Date or the
Expiration Date, shall have impressed, printed, stamped, written or otherwise affixed onto them the following legend: 
 This certificate also
evidences and entitles the holder hereof to certain rights as set forth in an Agreement between Medivation, Inc. (the “Company”) and American Stock Transfer & Trust Company, as Rights Agent, dated as of December 4, 2006, as
the same may be amended from time to time (the “Agreement”), the terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal executive offices of the Company. Under certain circumstances, as
set forth in the Agreement, such Rights will be evidenced by separate certificates and will no longer be evidenced by this certificate. The Company will mail to the holder of this certificate a copy of the Agreement without charge after receipt of a
written request therefor. As described in the Agreement, Rights which are owned by, transferred to or have been owned by Acquiring Persons or Associates or Affiliates thereof (as defined in the Agreement) shall become null and void and will no
longer be transferable. 
 With respect to such certificates containing the foregoing legend, until the Distribution Date (or the earlier Expiration
Date), the Rights associated with the Common Shares represented by such certificates shall be evidenced by such certificates alone, and the surrender for transfer of any 

  

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such certificates, except as otherwise provided herein, shall also constitute the transfer of the Rights associated with the Common Shares represented
thereby. In the event that the Company purchases or acquires any Common Shares after the Record Date but prior to the Distribution Date, any Rights associated with such Common Shares shall be deemed canceled and retired so that the Company shall not
be entitled to exercise any Rights associated with the Common Shares which are no longer outstanding. 
 Notwithstanding this
Section 3.3, the omission of a legend shall not affect the enforceability of any part of this Agreement or the rights of any holder of the Rights. 
 Section 4. Form of Right Certificates. The Right Certificates (and the forms of election to purchase shares, certification and assignment to be printed on the reverse thereof) shall be substantially the same as
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 or trading system on which the Rights may from time to time be listed or quoted, or to conform to
usage. Subject to the terms and conditions hereof, the Right Certificates, whenever issued, shall be dated as of the Record Date, and shall show the date of countersignature by the Rights Agent, and on their face shall entitle the holders thereof to
purchase such number of one one-thousandth of a Preferred Share as shall be set forth therein at the price per one one-thousandth of a Preferred Share set forth therein (the “Purchase Price”), but the number of such one
one-thousandth of a Preferred Share and the Purchase Price shall be subject to adjustment as provided herein. 
 Section 5.
Countersignature and Registration. The Right Certificates shall be executed on behalf of the Company by its Chairman of the Board of Directors, the Chief Executive Officer, President or any Vice President, either manually or by facsimile
signature, and shall have affixed thereto the Company’s seal or a facsimile thereof which shall be attested by the Secretary or any Assistant Secretary of the Company, either manually or by facsimile signature. The Right Certificates shall be
countersigned, either manually or by facsimile signature, by an authorized signatory of the Rights Agent, but it shall not be necessary for the same signatory to countersign all of the Right Certificates hereunder. No Right Certificate shall be
valid for any purpose unless so countersigned. In case any officer of the Company who shall have signed any of the Right Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery
by the Company, such Right Certificates, nevertheless, may be countersigned by the Rights Agent, and issued and delivered by the Company with the same force and effect as though the person who signed such Right Certificates had not ceased to be such
officer of the Company; and any Right Certificate may be signed on behalf of the Company by any person who, at the actual date of the execution of such Right Certificate, shall be a proper officer of the Company to sign such Right Certificate,
although at the date of the execution of this Agreement any such person was not such an officer. 
 Following the Distribution Date, the
Rights Agent will keep or cause to be kept, at its principal office, books for registration and transfer of the Right Certificates issued hereunder. Such books shall show the names and addresses of the respective holders of the Right Certificates,
the number of Rights evidenced on its face by each of the Right Certificates, the certificate number of each of the Right Certificates and the date of each of the Right Certificates. 
  

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 Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed,
Lost or Stolen Right Certificates. Subject to the provisions of Section 11.1.2 and Section 14, 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 Right
Certificate or Right Certificates (other than Right Certificates representing Rights that have become void pursuant to Section 11.1.2 or that have been exchanged pursuant to Section 27) may be transferred, split up or combined or exchanged
for another Right Certificate or Right Certificates, entitling the registered holder to purchase a like number of one one-thousandths of a Preferred Share as the Right Certificate or Right Certificates surrendered then entitled such holder to
purchase. Any registered holder desiring to transfer, split up or combine or exchange any Right Certificate shall make such request in writing delivered to the Rights Agent, and shall surrender, together with any required form of assignment and
certificate duly completed, the Right Certificate or Right Certificates to be transferred, split up or combined or exchanged at the office of the Rights Agent designated for such purpose. Neither the Rights Agent nor the Company shall be obligated
to take any action whatsoever with respect to the transfer of any such surrendered Right Certificate or Right Certificates until the registered holder shall have completed and signed the certificate contained in the form of assignment on the reverse
side of such Right Certificate or Right Certificates 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 countersign and deliver to the person entitled thereto a Right Certificate or Right Certificates, as the case may be, as so requested. The Company may require payment from the holders of Right Certificates of a sum
sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer, split up or combination or exchange of such Right Certificates. 
 Subject to the provisions of Section 11.1.2 , at any time after the Distribution Date and prior to the Expiration Date, upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them
of the loss, theft, destruction or mutilation of a Right Certificate, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, and, at the Company’s request, reimbursement to the Company and the
Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Right Certificate if mutilated, the Company will make and deliver a new Right Certificate of like tenor to the Rights Agent
for countersignature and delivery to the registered owner in lieu of the Right Certificate so lost, stolen, destroyed or mutilated. 
 Section 7. Exercise of Rights; Purchase Price; Expiration Date of Rights. 
 7.1. Exercise of
Rights. Subject to Section 11.1.2 and except as otherwise provided herein, the registered holder of any Right Certificate may exercise the Rights evidenced thereby in whole or in part at any time after the Distribution Date upon surrender
of the Right Certificate, with the form of election to purchase and certification on the reverse side thereof duly executed, to the Rights Agent at the office of the Rights Agent designated for such purpose, together with payment of the aggregate
Purchase Price for the total number of one one-thousandths of a Preferred Share (or other securities, cash or other assets) as to which the Rights 

  

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are exercised, at or prior to the time (the “Expiration Date”) that is the earliest of (i) the close of business on January 3,
2017 (the “Final Expiration Date”), (ii) the time at which the Rights are redeemed as provided in Section 23 (the “Redemption Date”), (iii) the closing of any merger or other acquisition transaction
involving the Company pursuant to an agreement of the type described in Section 13.3 at which time the Rights are deemed terminated, or (iv) the time at which the Rights are exchanged as provided in Section 27. 
 7.2. Purchase. The Purchase Price for each one one-thousandths of a Preferred Share pursuant to the exercise of a Right shall
be initially $130.00, shall be subject to adjustment from time to time as provided in Sections 11, 13 and 26 and shall be payable in lawful money of the United States of America in accordance with Section 7.3. 
 7.3. Payment Procedures. Upon receipt of a Right Certificate representing exercisable Rights, with the form of election to
purchase and certification duly executed, accompanied by payment of the aggregate Purchase Price for the total number of one one-thousandths of a Preferred Share to be purchased and an amount equal to any applicable transfer tax required to be paid
by the holder of such Right Certificate in accordance with Section 9, in cash or by certified or cashier’s check or money order payable to the order of the Company, the Rights Agent shall thereupon promptly (i)(A) requisition from any
transfer agent of the Preferred Shares (or make available, if the Rights Agent is the transfer agent) certificates for the number of Preferred Shares 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 Preferred Shares issuable upon exercise of the Rights hereunder with a depository agent, requisition from the depositary agent depositary receipts
representing interests in such number of one one-thousandths of a Preferred Share as are to be purchased (in which case certificates for the Preferred Shares represented by such receipts shall be deposited by the transfer agent with the depositary
agent) and the Company hereby directs the depositary agent to comply with all such requests, (ii) when appropriate, requisition from the Company the amount of cash to be paid in lieu of the issuance of fractional shares in accordance with
Section 14 or otherwise in accordance with Section 11.1.3, (iii) promptly after receipt of such certificates or depositary receipts, cause the same to be delivered to or upon the order of the registered holder of such Right
Certificate, registered in such name or names as may be designated by such holder and (iv) when appropriate, after receipt, promptly deliver such cash to or upon the order of the registered holder of such Right Certificate. In the event that
the Company is obligated to issue other securities of the Company, pay cash and/or distribute other property pursuant to Section 11.1.3, 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. 
 7.4. Partial Exercise. In case the
registered holder of any Right Certificate shall exercise less than all the Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent to the Rights remaining unexercised shall be issued by the Rights Agent and delivered to the
registered holder of such Right Certificate or to his duly authorized assigns, subject to the provisions of Section 14. 
 7.5. Full Information Concerning Ownership. 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 of
Rights upon the occurrence of any 

  

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purported exercise as set forth in this Section 7 unless the certificate contained in the form of election to purchase set forth on the reverse side of
the Right Certificate surrendered for such exercise shall have been duly completed and signed by the registered holder thereof and the Company shall have been provided with such additional evidence of the identity of the Beneficial Owner (or former
Beneficial Owner) or Affiliates or Associates thereof as the Company shall reasonably request. 
 Section 8. Cancellation and Destruction
of Right Certificates. All Right Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the Rights Agent for cancellation or
in canceled form, or, if surrendered to the Rights Agent, shall be canceled by it, and no Right 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 Right Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all canceled
Right Certificates to the Company, or shall, at the written request of the Company, destroy such canceled Right Certificates, and in such case shall deliver a certificate of destruction thereof to the Company. 
 Section 9. Reservation and Availability of Capital Stock. The Company covenants and agrees that from and after the Distribution Date it will cause
to be reserved and kept available out of its authorized and unissued Preferred Shares (and, following the occurrence of a Trigger Event, out of its authorized and unissued Common Shares or other securities or out of its shares held in its treasury)
the number of Preferred Shares (and, following the occurrence of a Trigger Event, Common Shares and/or other securities) that will be sufficient to permit the exercise in full of all outstanding Rights. 
 So long as the Preferred Shares (and, following the occurrence of a Trigger Event, Common Shares and/or other securities) issuable upon the exercise of
Rights may be listed on any national securities exchange or traded in the over-the-counter market and quoted on the National Association of Securities Dealers, Inc. Automated Quotation System (“Nasdaq”) (including the National
Market or Small Cap Market), the Company shall use its best efforts to cause, from and after such time as the Rights become exercisable, all shares reserved for such issuance to be listed or admitted to trading on such exchange or quoted on Nasdaq
upon official notice of issuance upon such exercise. 
 The Company covenants and agrees that it will take all such action as may be
necessary to ensure that all Preferred Shares (and, following the occurrence of a Trigger Event, Common Shares 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 shares. 
 From and after such
time as the Rights become exercisable, the Company shall use its best efforts, if then necessary to permit the issuance of Preferred Shares upon the exercise of Rights, to register and qualify such Preferred Shares under the Securities Act and any
applicable state securities or “Blue Sky” laws (to the extent exemptions therefrom are not available), cause such registration statement and qualifications to become effective as soon as possible after such 

  

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filing and keep such registration and qualifications effective until the earlier of the date as of which the Rights are no longer exercisable for such
securities and the Expiration Date. The Company may temporarily suspend, for a period of time not to exceed 90 days, the exercisability of the Rights in order to prepare and file a registration statement under the Securities Act and permit it to
become effective. Upon any such suspension, the Company shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no longer in
effect. Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction unless the requisite qualification in such jurisdiction shall have been obtained and until a registration statement
under the Securities Act (if required) shall have been declared effective. 
 The Company further covenants and agrees that it will pay when
due and payable any and all Federal and state transfer taxes and charges which may be payable in respect of the issuance or delivery of the Right Certificates or of any Preferred Shares (or Common Shares 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 Right Certificates to a person other than, or the issuance or delivery of certificates
for the Preferred Shares (or Common Shares and/or other securities, as the case may be) in a name other than that of, the registered holder of the Right Certificate evidencing Rights surrendered for exercise or to issue or deliver any certificates
for Preferred Shares (or Common Shares 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 any such tax shall have been paid (any such tax being payable by the holder
of such Right Certificate 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 Shares Record Date. Each person in whose name any certificate for Preferred Shares (or Common Shares 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 the Preferred Shares (or Common Shares and/or other securities, as the case may be) represented thereby on, and such certificate shall be dated, the date upon which the Right Certificate evidencing such
Rights was duly surrendered and payment of the Purchase Price (and any applicable transfer taxes) was made; provided, however, that if the date of such surrender and payment is a date upon which the Preferred Shares (or Common Shares
and/or other securities, as the case may be) transfer books of the Company are closed, such person shall be deemed to have become the record holder of such shares (fractional or otherwise) on, and such certificate shall be dated, the next succeeding
Business Day on which the Preferred Shares (or Common Shares 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 Right Certificate shall not be
entitled to any rights of a holder of Preferred Shares for which the Rights shall be exercisable, including, without limitation, the right to vote or to receive dividends or other distributions, and shall not be entitled to receive any notice of any
proceedings of the Company, except as provided herein. 
 Section 11. Adjustment of Purchase Price, Number of Shares or Number of
Rights. The Purchase Price, the number of Preferred Shares or other securities or property purchasable upon exercise of each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this
Section 11. 
  

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 11.1. Post-Execution Events. 
 11.1.1. Corporate Dividends, Reclassifications, Etc. In the event the Company shall at any time after the date of this
Agreement (A) declare and pay a dividend on the Preferred Shares payable in Preferred Shares, (B) subdivide the outstanding Preferred Shares, (C) combine the outstanding Preferred Shares into a smaller number of Preferred Shares or
(D) issue any shares of its capital stock in a reclassification of the Preferred Shares (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 11.1, the Purchase Price in effect at the time of the record date for such dividend or of the effective date of such subdivision, combination or reclassification, and the number and kind of shares of
capital stock issuable on such date, shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled to receive the aggregate number and kind of shares of capital stock which, if such Right had been
exercised immediately prior to such date and at a time when the Preferred Shares transfer books of the Company were open, he would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or
reclassification; provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable
upon exercise of one Right. If an event occurs which would require an adjustment under both Section 11.1.1 and Section 11.1.2, the adjustment provided for in this Section 11.1.1 shall be in addition to, and shall be made prior to, the
adjustment required pursuant to, Section 11.1.2. 
 11.1.2. Acquiring Person Events; Triggering Events.
Subject to Sections 23.1 and 27, in the event that a Trigger Event occurs, then, from and after the first occurrence of such event, each holder of a Right, except as provided below, shall thereafter have a right to receive, upon exercise thereof at
a price per Right equal to the then current Purchase Price multiplied by the number of one one-thousandths of a Preferred Share for which a Right is then exercisable (without giving effect to this Section 11.1.2), in accordance with the terms
of this Agreement and in lieu of Preferred Shares, such number of Common Shares as shall equal the result obtained by (x) multiplying the then current Purchase Price by the then number of one one-thousandths of a Preferred Share for which a
Right is then exercisable (without giving effect to this Section 11.1.2) and (y) dividing that product by 50% of the current per share market price of the Common Shares (determined pursuant to Section 11.4) on the first of the date of
the occurrence of, or the date of the first public announcement of, a Trigger Event (the “Adjustment Shares”); provided that the Purchase Price and the number of Adjustment Shares shall thereafter be subject to further
adjustment as appropriate in accordance with Section 11.6. Notwithstanding the foregoing, upon the occurrence of a Trigger Event, any Rights that are or were acquired or beneficially owned by (1) any Acquiring Person or any Associate or
Affiliate thereof, (2) a transferee of any Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee after the Acquiring Person becomes such, or (3) a transferee of any 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 

  

 12 

 
equity interests in such Acquiring Person or to any Person with whom the Acquiring Person has any continuing agreement, arrangement or understanding
regarding the transferred Rights or (B) a transfer which the Board of Directors of the Company has determined is part of a plan, arrangement or understanding which has as a primary purpose or effect avoidance of this Section 11.1.2, and
subsequent transferees, shall become void without any further action, and any holder (whether or not such holder is an Acquiring Person or an Associate or Affiliate of an Acquiring Person) of such Rights shall thereafter have no right to exercise
such Rights under any provision of this Agreement or otherwise. From and after the Trigger Event, no Right Certificate shall be issued pursuant to Section 3 or Section 6 that represents Rights that are or have become void pursuant to the
provisions of this paragraph, and any Right Certificate delivered to the Rights Agent that represents Rights that are or have become void pursuant to the provisions of this paragraph shall be canceled. 
 The Company shall use all reasonable efforts to ensure that the provisions of this Section 11.1.2 are complied with, but shall have no liability to
any holder of Right Certificates or other Person as a result of its failure to make any determinations with respect to any Acquiring Person or its Affiliates, Associates or transferees hereunder. 
 From and after the occurrence of an event specified in Section 13.1, any Rights that theretofore have not been exercised pursuant to this
Section 11.1.2 shall thereafter be exercisable only in accordance with Section 13 and not pursuant to this Section 11.1.2. 
 11.1.3. Insufficient Shares. The Company may at its option substitute for a Common Share issuable upon the exercise of Rights in accordance with the foregoing Section 11.1.2 a number of Preferred
Shares or fraction thereof such that the current per share market price of one Preferred Share multiplied by such number or fraction is equal to the current per share market price of one Common Share. In the event that upon the occurrence of a
Trigger Event there shall not be sufficient Common Shares authorized but unissued, or held by the Company as treasury shares, to permit the exercise in full of the Rights in accordance with the foregoing Section 11.1.2, the Company shall take
all such action as may be necessary to authorize additional Common Shares for issuance upon exercise of the Rights, provided, however, that if the Company determines that it is unable to cause the authorization of a sufficient number
of additional Common Shares, then, in the event the Rights become exercisable, the Company, with respect to each Right and to the extent necessary and permitted by applicable law and any agreements or instruments in effect on the date hereof to
which it is a party, shall: (A) determine the excess of (1) the value of the Adjustment Shares issuable upon the exercise of a Right (the “Current Value”), over (2) the Purchase Price (such excess, the
“Spread”) and (B) with respect to each Right (other than Rights which have become void pursuant to Section 11.1.2), make adequate provision to substitute for the Adjustment Shares, upon payment of the applicable Purchase
Price, (1) cash, (2) a reduction in the Purchase Price, (3) Preferred Shares or other equity securities of the Company (including, without limitation, shares, or fractions of shares, of preferred stock which, by virtue of having
dividend and liquidation rights substantially comparable to those of the Common Shares, the Board of Directors of the Company has deemed in good faith to have substantially the same value as Common Shares) (each such share of preferred stock or
fractions of shares of preferred stock constituting a “common stock equivalent”), (4) debt securities of the Company, (5) other assets or (6) any combination of the foregoing having an aggregate value equal to the
Current Value, 

  

 13 

 
where such aggregate value has been determined by the Board of Directors of the Company based upon the advice of a nationally recognized investment banking
firm selected in good faith by the Board of Directors of the Company; 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 occurrence of a Trigger Event, then the Company shall be obligated to deliver, to the extent necessary and permitted by applicable law and any agreements or instruments in effect on the date hereof to which it is a party, upon the
surrender for exercise of a Right and without requiring payment of the Purchase Price, Common Shares (to the extent available) and then, if necessary, such number or fractions of Preferred Shares (to the extent available) and then, if necessary,
cash, which shares and/or cash have an aggregate value equal to the Spread. If the Board of Directors of the Company shall determine in good faith that it is unlikely that sufficient additional Common Shares could be authorized for issuance upon
exercise in full of the Rights, the thirty (30) day period set forth above may be extended and re-extended to the extent necessary, but not more than ninety (90) days following the occurrence of a Trigger Event, in order that the Company
may seek stockholder approval for the authorization of such additional shares (such period as may be extended, the “Substitution Period”). To the extent that the Company determines that some action need be taken pursuant to the
second and/or third sentences of this Section 11.1.3, the Company (x) shall provide that such action shall apply uniformly to all outstanding Rights, and (y) may suspend the exercisability of the Rights until the expiration of the
Substitution Period in order to seek any authorization of additional shares and/or to decide the appropriate form of distribution to be made pursuant to such 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 11.1.3,
the value of a Common Share shall be the current per share market price (as determined pursuant to Section 11.4) on the date of the occurrence of a Trigger Event and the value of any “common stock equivalent” shall be deemed to have
the same value as the Common Shares on such date. The Board of Directors of the Company may, but shall not be required to, establish procedures to allocate the right to receive Common Shares upon the exercise of the Rights among holders of Rights
pursuant to this Section 11.1.3. 
 11.2. Dilutive Rights Offering. In case the Company shall fix a record
date for the issuance of rights, options or warrants to all holders of Preferred Shares entitling them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Preferred Shares (or securities having the
same rights, privileges and preferences as the Preferred Shares (“equivalent preferred stock”)) or securities convertible into Preferred Shares or equivalent preferred stock at a price per Preferred Share or per share of equivalent
preferred stock (or having a conversion or exercise price per share, if a security convertible into or exercisable for Preferred Shares or equivalent preferred stock) less than the current per share market price of the Preferred Shares (as
determined pursuant to Section 11.4) 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 Preferred Shares and shares of equivalent preferred stock outstanding on such record date plus the number of Preferred Shares and shares of equivalent preferred stock which the aggregate offering price of
the total number of Preferred Shares and/or shares of equivalent preferred stock to be offered (and/or the aggregate initial conversion price of 

  

 14 

 
the convertible securities so to be offered) would purchase at such current per share market price and the denominator of which shall be the number of
Preferred Shares and shares of equivalent preferred stock outstanding on such record date plus the number of additional Preferred Shares and/or shares of equivalent preferred stock to be offered for subscription or purchase (or into which the
convertible securities so to be offered are initially convertible); provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital
stock of the Company issuable upon exercise of one Right. In case such subscription price may be paid in a consideration part or all of which shall be in a form other than cash, the value of such consideration shall be as determined in good faith by
the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and the holders of the Rights. Preferred Shares and shares of equivalent preferred
stock owned by or held for the account of the Company or any Subsidiary of the Company shall not be deemed outstanding for the purpose of any such computation. Such adjustments 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. 
 11.3. Distributions. In case the Company shall fix a record date for the making of a distribution to all holders of the
Preferred Shares (including any such distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving corporation) of evidences of indebtedness, cash, securities or assets (other than a regular
periodic cash dividend at a rate not in excess of 125% of the rate of the last regular periodic cash dividend theretofore paid or, in case regular periodic cash dividends have not theretofore been paid, at a rate not in excess of 50% of the average
net income per share of the Company for the four quarters ended immediately prior to the payment of such dividend, or a dividend payable in Preferred Shares (which dividend, for purposes of this Agreement, shall be subject to the provisions of
Section 11.1.1(A))) or convertible securities, or subscription rights or warrants (excluding those referred to in Section 11.2), 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 per share market price of the Preferred Shares (as determined pursuant to Section 11.4) 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, securities or evidences of indebtedness so to be
distributed or of such subscription rights or warrants applicable to one Preferred Share and the denominator of which shall be such current per share market price of the Preferred Shares (as determined pursuant to Section 11.4);
provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company to be issued upon exercise of one
Right. Such adjustments shall be made successively whenever such a record date is fixed; and in the event that such distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase Price which would then be in effect if
such record date had not been fixed. 
  

 15 

 11.4. Current Per Share Market Value. 
 11.4.1. General. For the purpose of any computation hereunder, the “current per share market price” of any
security (a “Security” for the purpose of this Section 11.4.1) on any date shall be deemed to be the average of the daily closing prices per share of such Security for the thirty (30) consecutive Trading Days (as such term
is hereinafter defined) immediately prior to such date; provided, however, that in the event that the current per share market price of the Security is determined during any period following the announcement by the issuer of such
Security of (i) a dividend or distribution on such Security payable in shares of such Security or securities convertible into such shares or (ii) any subdivision, combination or reclassification of such Security, and prior to the
expiration of thirty (30) Trading Days after the ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination or reclassification, then, and in each such case, the “current per share market
price” shall be appropriately adjusted to reflect the current market price per share equivalent of such Security. The closing price for each day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, in either case as reported 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
Security is 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
Security is listed or admitted to trading or, if the Security is not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the
over-the-counter market, as reported by Nasdaq or such other system then in use, or, if on any such date the Security is not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker
making a market in the Security selected by the Board of Directors of the Company. If on any such date no such market maker is making a market in the Security, the fair value of the Security on such date as determined in good faith by the Board of
Directors of the Company shall be used. The term “Trading Day” shall mean a day on which the principal national securities exchange on which the Security is listed or admitted to trading is open for the transaction of business or,
if the Security is not listed or admitted to trading on any national securities exchange, a Business Day. If the Security is not publicly held or not so listed or traded, or if on any such date the Security is not so quoted and no such market maker
is making a market in the Security, “current per share market price” shall mean the fair value per share as determined in good faith by the Board of Directors of the Company or, if at the time of such determination there is an Acquiring
Person, by a nationally recognized investment banking firm selected by the Board of Directors, which shall have the duty to make such determination in a reasonable and objective manner, whose determination shall be described in a statement filed
with the Rights Agent and shall be conclusive for all purposes. 
 11.4.2. Preferred Shares. Notwithstanding
Section 11.4.1, for the purpose of any computation hereunder, the “current per share market price” of the Preferred Shares shall be determined in the same manner as set forth above in Section 11.4.1 (other than the last sentence
thereof). If the current per share market price of the Preferred Shares cannot be determined in the manner described in Section 11.4.1, the “current per share market price” of the Preferred Shares shall be conclusively deemed to be an
amount equal to 1000 (as such number may be appropriately adjusted for such events as stock splits, stock dividends and 

  

 16 

 
recapitalizations with respect to the Common Shares occurring after the date of this Agreement) multiplied by the current per share market price of the
Common Shares (as determined pursuant to Section 11.4.1). If neither the Common Shares nor the Preferred Shares are publicly held or so listed or traded, or if on any such date neither the Common Shares nor the Preferred Shares are so quoted
and no such market maker is making a market in either the Common Shares or the Preferred Shares, “current per share market price” of the Preferred Shares shall mean the fair value per share as determined in good faith by the Board of
Directors of the Company, or, if at the time of such determination there is an Acquiring Person, by a nationally recognized investment banking firm selected by the Board of Directors of the Company, which shall have the duty to make such
determination in a reasonable and objective manner, which determination shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes. For purposes of this Agreement, the “current per share market
price” of one one-thousandth of a Preferred Share shall be equal to the “current per share market price” of one Preferred Share divided by 1000. 
 11.5. Insignificant Changes. No adjustment in the Purchase Price shall be required unless such adjustment would require an
increase or decrease of at least 1% in the Purchase Price. Any adjustments which by reason of this Section 11.5 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 one-hundred thousandths of a Preferred Share or the nearest one-thousandth of a Common Share or other share or security, as the case may be. 
 11.6. Shares Other Than Preferred Shares. If as a result of an adjustment made pursuant to Section 11.1, the holder of
any Right thereafter exercised shall become entitled to receive any shares of capital stock of the Company other than Preferred Shares, thereafter the number of such other shares so receivable upon exercise of any Right shall be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Preferred Shares contained in Sections 11.1, 11.2, 11.3, 11.5, 11.8, 11.9 and 11.13, and the provisions of Sections 7, 9,
10, 13 and 14 with respect to the Preferred Shares shall apply on like terms to any such other shares. 
 11.7. Rights
Issued Prior to Adjustment. 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 Preferred Share purchasable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided herein. 
 11.8. Effect of Adjustments. Unless the Company shall have exercised its election as provided in Section 11.9, upon each adjustment of the Purchase Price as a result of the calculations made in
Sections 11.2 and 11.3, each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of one one-thousandths of a Preferred Share (calculated to
the nearest one-hundred thousandths of a Preferred Share) obtained by (i) multiplying (x) the number of one one-thousandths of a Preferred 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. 
  

 17 

 11.9. Adjustment in Number of Rights. The Company may elect on or after the
date of any adjustment of the Purchase Price to adjust the number of Rights, in substitution for any adjustment in the number of one one-thousandths of a Preferred Share issuable upon the exercise of a Right. Each of the Rights outstanding after
such adjustment of the number of Rights shall be exercisable for the number of one one-thousandths of a Preferred Share 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-thousandth) obtained by dividing the Purchase Price in effect immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately after
adjustment of the Purchase Price. The Company shall make a public announcement of its election to adjust the number of Rights, indicating the record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. This
record date may be the date on which the Purchase Price is adjusted or any day thereafter, but, if the Right Certificates have been issued, shall be at least ten (10) days later than the date of the public announcement. If Right Certificates
have been issued, upon each adjustment of the number of Rights pursuant to this Section 11.9, the Company may, as promptly as practicable, cause to be distributed to holders of record of Right Certificates on such record date Right Certificates
evidencing, subject to Section 14, the additional Rights to which such holders shall be entitled as a result of such adjustment, or, at the option of the Company, shall cause to be distributed to such holders of record in substitution and
replacement for the Right Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the Company, new Right Certificates evidencing all the Rights to which such holders shall be entitled after such
adjustment. Right 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 Right Certificates on the record date specified in the public announcement. 
 11.10. Right
Certificates Unchanged. Irrespective of any adjustment or change in the Purchase Price or the number of one one-thousandths of a Preferred Share issuable upon the exercise of the Rights, the Right Certificates theretofore and thereafter issued
may continue to express the Purchase Price per share and the number of one one-thousandths of a Preferred Share which were expressed in the initial Right Certificates issued hereunder. 
 11.11. Par Value Limitations. Before taking any action that would cause an adjustment reducing the Purchase Price below one
one-thousandth of the then par value, if any, of the Preferred Shares or other shares of capital stock issuable upon exercise of the Rights, the Company shall take any corporate action which may, in the opinion of its counsel, be necessary in order
that the Company may validly and legally issue fully paid and nonassessable Preferred Shares or other such shares at such adjusted Purchase Price. 
 11.12. Deferred Issuance. 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 of that number of Preferred Shares and shares of other 

  

 18 

 
capital stock or securities of the Company, if any, issuable upon such exercise over and above the Preferred Shares and shares of other capital stock or
other securities, assets or cash of the Company, if any, issuable upon such exercise on the basis of the Purchase Price in effect prior to such adjustment; provided, however, that the Company shall deliver to such holder a due bill or
other appropriate instrument evidencing such holder’s right to receive such additional shares upon the occurrence of the event requiring such adjustment. 
 11.13. Reduction in Purchase Price. 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 it in its sole discretion shall determine to be advisable in order that any consolidation
or subdivision of the Preferred Shares, issuance wholly for cash of any of the Preferred Shares at less than the current market price, issuance wholly for cash of Preferred Shares or securities which by their terms are convertible into or
exchangeable for Preferred Shares, dividends on Preferred Shares payable in Preferred Shares or issuance of rights, options or warrants referred to hereinabove in this Section 11, hereafter made by the Company to holders of its Preferred Shares
shall not be taxable to such stockholders. 
 11.14. Company Not to Diminish Benefits of Rights. The Company
covenants and agrees that after the earlier of the Shares Acquisition Date or Distribution Date it will not, except as permitted by Section 23, Section 26 or Section 27, 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 substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights. 
 11.15. Adjustment of Rights Associated with Common Shares. Notwithstanding anything contained in this Agreement to the
contrary, in the event that the Company shall at any time after the date hereof and prior to the Distribution Date (i) declare or pay any dividend on the outstanding Common Shares payable in Common Shares, (ii) effect a subdivision or
consolidation of the outstanding Common Shares (by reclassification or otherwise than by the payment of dividends payable in Common Shares), or (iii) combine the outstanding Common Shares into a greater or lesser number of Common Shares, then
in any such case, the number of Rights associated with each Common Share then outstanding, or issued or delivered thereafter but prior to the Distribution Date or in accordance with Section 22 shall be proportionately adjusted so that the
number of Rights thereafter associated with each Common Share following any such event shall equal the result obtained by multiplying the number of Rights associated with each Common Share immediately prior to such event by a fraction, the numerator
of which shall be the total number of Common Shares outstanding immediately prior to the occurrence of the event and the denominator of which shall be the total number of Common Shares outstanding immediately following the occurrence of such event.
The adjustments provided for in this Section 11.15 shall be made successively whenever such a dividend is declared or paid or such a subdivision, combination or consolidation is effected. 
 Section 12. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made as provided in Sections 11 or 13, 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 Common 

  

 19 

 
Shares or the Preferred Shares a copy of such certificate and (c) mail a brief summary thereof to each holder of a Right Certificate in accordance with
Section 25. The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment therein contained and shall not be deemed to have knowledge of any such adjustment unless and until it shall have received such
certificate. 
 Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power. 
 13.1. Certain Transactions. In the event that, from and after the first occurrence of a Trigger Event, directly or indirectly,
(A) the Company shall consolidate with, or merge with and into, any other Person and the Company shall not be the continuing or surviving corporation, (B) any Person shall consolidate with the Company, or merge with and into the Company
and the Company shall be the continuing or surviving corporation of such merger and, in connection with such merger, all or part of the Common Shares shall be changed into or exchanged for stock or other securities of the Company or any other Person
or cash or any other property, or (C) the Company shall sell, exchange, mortgage or otherwise transfer (or one or more of its Subsidiaries shall sell, exchange, mortgage or otherwise transfer), in one or more transactions, assets or earning
power aggregating 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company or one or more wholly-owned Subsidiaries of the Company in one or more
transactions each of which complies with Section 11.14), then, and in each such case, proper provision shall be made so that (i) each holder of a Right (other than Rights which have become void pursuant to Section 11.1.2) shall
thereafter have the right to receive, upon the exercise thereof at a price per Right equal to the then current Purchase Price multiplied by the number of one-thousandths of a Preferred Share for which a Right was exercisable immediately prior to the
first occurrence of a Trigger Event (as subsequently adjusted pursuant to Sections 11.1.1, 11.2, 11.3, 11.8, 11.9 and 11.12), in accordance with the terms of this Agreement and in lieu of Preferred Shares or Common Shares, such number of validly
authorized and issued, fully paid, non-assessable and freely tradable Common Shares 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 (x) multiplying the then current Purchase Price by the number of one one-thousandths of a Preferred Share for which a Right was exercisable immediately prior to the first occurrence of a Trigger Event (as
subsequently adjusted pursuant to Sections 11.1.1, 11.2, 11.3, 11.8, 11.9 and 11.12) and (y) dividing that product by 50% of the then current per share market price of the Common Shares of such Principal Party (determined pursuant to
Section 11.4) on the date of consummation of such consolidation, merger, sale or transfer; provided, that the price per Right so payable and the number of Common Shares of such Principal Party so receivable upon exercise of a
Right shall thereafter be subject to further adjustment as appropriate in accordance with Section 11.6 to reflect any events covered thereby occurring in respect of the Common Shares of such Principal Party after the occurrence of such
consolidation, merger, sale or transfer; (ii) such Principal Party shall thereafter be liable for, and shall assume, by virtue of such consolidation, merger, sale or transfer, all the obligations and duties of the Company pursuant to this
Agreement; (iii) the term “Company” shall thereafter be deemed to refer to such Principal Party; and (iv) such Principal Party shall take such steps (including, but not limited to, the reservation of a sufficient number of its
Common Shares in accordance with Section 9) in connection with such consummation as may be necessary to assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to its Common Shares 

  

 20 

 
thereafter deliverable upon the exercise of the Rights; provided that, upon the subsequent occurrence of any consolidation, merger, sale or
transfer of assets or other extraordinary transaction in respect of such Principal Party, each holder of a Right shall thereupon be entitled to receive, upon exercise of a Right and payment of the Purchase Price as provided in this
Section 13.1, such cash, shares, rights, warrants and other property which such holder would have been entitled to receive had such holder, at the time of such transaction, owned the Common Shares of the Principal Party receivable upon the
exercise of a Right pursuant to this Section 13.1, and such Principal Party shall take such steps (including, but not limited to, reservation of shares of stock) as may be necessary to permit the subsequent exercise of the Rights in accordance
with the terms hereof for such cash, shares, rights, warrants and other property. The Company shall not consummate any such consolidation, merger, sale or transfer unless prior thereto the Company and such Principal Party shall have executed and
delivered to the Rights Agent a supplemental agreement confirming that the requirements of this Section 13.1 and Section 13.2 shall promptly be performed in accordance with their terms and that such consolidation, merger, sale or transfer
of assets shall not result in a default by the Principal Party under this Agreement as the same shall have been assumed by the Principal Party pursuant to this Section 13.1 and Section 13.2 and providing that, as soon as practicable after
executing such agreement pursuant to this Section 13, the Principal Party, at its own expense, shall 
 (1) prepare and
file a registration statement under the Securities Act, if necessary, with respect to the Rights and the securities purchasable upon exercise of the Rights on an appropriate form, use its best efforts to cause such registration statement to become
effective as soon as practicable after such filing and use its best efforts to cause such registration statement to remain effective (with a prospectus at all times meeting the requirements of the Securities Act) until the Expiration Date and
similarly comply with applicable state securities laws; 
 (2) use its best efforts, if the Common Shares of the Principal
Party shall be listed or admitted to trading on the New York Stock Exchange or on another national securities exchange, to list or admit to trading (or continue the listing of) the Rights and the securities purchasable upon exercise of the Rights on
the New York Stock Exchange or such securities exchange, or, if the Common Shares of the Principal Party shall not be listed or admitted to trading on the New York Stock Exchange or a national securities exchange, to cause the Rights and the
securities receivable upon exercise of the Rights to be authorized for quotation on Nasdaq or on such other system then in use; 
 (3) deliver to holders of the Rights historical financial statements for the Principal Party which comply in all respects with the requirements for registration on Form 10 (or any successor form) under the Exchange Act; and 
 (4) obtain waivers of any rights of first refusal or preemptive rights in respect of the Common Shares of the Principal Party subject to
purchase upon exercise of outstanding Rights. 
 In case the Principal Party has provision in any of its authorized securities
or in its certificate of incorporation or by-laws or other instrument governing its corporate affairs, which provision would have the effect of (i) causing such Principal Party to issue (other than to holders 

  

 21 

 
of Rights pursuant to this Section 13), in connection with, or as a consequence of, the consummation of a transaction referred to in this
Section 13, Common Shares or common stock equivalents of such Principal Party at less than the then current market price per share thereof (determined pursuant to Section 11.4) or securities exercisable for, or convertible into, Common
Shares or common stock equivalents of such Principal Party at less than such then current market price (other than to holders of Rights pursuant to this Section 13), or (ii) providing for any special payment, taxes or similar provision in
connection with the issuance of the Common Shares of such Principal Party pursuant to the provision of Section 13, then, in such event, the Company hereby agrees with each holder of Rights that it shall not consummate any such transaction
unless prior thereto the Company and such Principal Party shall have executed and delivered to the Rights Agent a supplemental agreement providing that the provision in question of such Principal Party shall have been canceled, waived or amended, or
that the authorized securities shall be redeemed, so that the applicable provision will have no effect in connection with, or as a consequence of, the consummation of the proposed transaction. 
 The Company covenants and agrees that it shall not, at any time after the Trigger Event, enter into any transaction of the type described
in clauses (A) through (C) of this Section 13.1 if (i) at the time of or immediately after such consolidation, merger, sale, transfer or other transaction there are any rights, warrants or other instruments or securities
outstanding or agreements in effect which would substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights, (ii) prior to, simultaneously with or immediately after such consolidation, merger, sale, transfer
or other transaction, the stockholders of the Person who constitutes, or would constitute, the Principal Party for purposes of Section 13.2 shall have received a distribution of Rights previously owned by such Person or any of its Affiliates or
Associates or (iii) the form or nature of organization of the Principal Party would preclude or limit the exercisability of the Rights. The provisions of this Section 13 shall similarly apply to successive transactions of the type
described in clauses (A) through (C) of this Section 13.1. 
 13.2. Principal Party.
“Principal Party” shall mean: 
 (i) in the case of any transaction described in (A) or (B) of the first
sentence of Section 13.1: (i) the Person that is the issuer of the securities into which the Common Shares are converted in such merger or consolidation, or, if there is more than one such issuer, the issuer the Common Shares of which have
the greatest aggregate market value of shares outstanding, or (ii) if no securities are so issued, (x) the Person that is the other party to the merger, if such Person survives said merger, or, if there is more than one such Person, the
Person the Common Shares of which have the greatest aggregate market value of shares outstanding or (y) if the Person that is the other party to the merger does not survive the merger, the Person that does survive the merger (including the
Company if it survives) or (z) the Person resulting from the consolidation; and 
 (ii) in the case of any transaction
described in (C) of the first sentence in Section 13.1, the Person that is the party receiving the greatest portion of the assets or earning power transferred pursuant to such transaction or transactions, or, if each Person that is a party
to such transaction or transactions receives the same portion of the assets or earning power so transferred or if the Person receiving the greatest portion of the assets or earning power cannot be determined, whichever of such Persons is the issuer
of Common Shares having the greatest 

  

 22 

 
aggregate market value of shares outstanding; provided, however, that in any such case described in the foregoing clause (i) or
(ii) of this Section 13.2, if the Common Shares of such Person are not at such time or have not been continuously over the preceding 12-month period registered under Section 12 of the Exchange Act, then (1) if such Person is a
direct or indirect Subsidiary of another Person the Common Shares of which are and have been so registered, the term “Principal Party” shall refer to such other Person, or (2) if such Person is a Subsidiary, directly or indirectly, of
more than one Person, the Common Shares of all of which are and have been so registered, the term “Principal Party” shall refer to whichever of such Persons is the issuer of Common Shares having the greatest aggregate market value of
shares outstanding, or (3) if such Person is owned, directly or indirectly, by a joint venture formed by two or more Persons that are not owned, directly or indirectly, by the same Person, the rules set forth in clauses (1) and
(2) above shall apply to each of the owners having an interest in the venture as if the Person owned by the joint venture was a Subsidiary of both or all of such joint venturers, and the Principal Party in each such case shall bear the
obligations set forth in this Section 13 in the same ratio as its interest in such Person bears to the total of such interests. 
 13.3. Approved Acquisitions. Notwithstanding anything contained herein to the contrary, upon the consummation of any merger or other acquisition transaction of the type described in clause (A), (B) or (C) of
Section 13.1 involving the Company pursuant to a merger or other acquisition agreement between the Company and any Person (or one or more of such Person’s Affiliates or Associates) which agreement has been approved by the Board of
Directors of the Company prior to any Person becoming an Acquiring Person, this Agreement and the rights of holders of Rights hereunder shall be terminated in accordance with Section 7.1. 
 Section 14. Fractional Rights and Fractional Shares. 
 14.1. Cash in Lieu of Fractional Rights. The Company shall not be required to issue fractions of Rights or to distribute Right Certificates which evidence fractional Rights (except prior to the
Distribution Date in accordance with Section 11.15). In lieu of such fractional Rights, there shall be paid to the registered holders of the Right Certificates with regard to which such fractional Rights would otherwise be issuable an amount in
cash equal to the same fraction of the current market value of a whole Right. For the purposes of this Section 14.1, the current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to the
date on which such fractional Rights would have been otherwise issuable. The closing price for any day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices,
regular way, in either case as reported 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 of Directors of the
Company. If on any such date no such market maker is making a 

  

 23 

 
market in the Rights, the current market value of the Rights on such date shall be the fair value of the Rights as determined in good faith by the Board of
Directors of the Company, or, if at the time of such determination there is an Acquiring Person, by a nationally recognized investment banking firm selected by the Board of Directors of the Company, which shall have the duty to make such
determination in a reasonable and objective manner, which determination shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes. 
 14.2. Cash in Lieu of Fractional Preferred Shares. The Company shall not be required to issue fractions of Preferred Shares
(other than fractions which are integral multiples of one one-thousandth of a Preferred Share) upon exercise or exchange of the Rights or to distribute certificates which evidence fractional Preferred Shares (other than fractions which are integral
multiples of one one-thousandth of a Preferred Share). Interests in fractions of Preferred Shares in integral multiples of one one-thousandth of a Preferred Share may, at the election of the Company, be evidenced by depositary receipts, pursuant to
an appropriate agreement between the Company and a depositary selected by it; provided, that such agreement shall provide that the holders of such depositary receipts shall have all the rights, privileges and preferences to which they
are entitled as beneficial owners of the Preferred Shares represented by such depositary receipts. In lieu of fractional Preferred Shares that are not integral multiples of one one-thousandth of a Preferred Share, the Company shall pay to the
registered holders of Right Certificates at the time such Rights are exercised or exchanged as herein provided an amount in cash equal to the same fraction of the current per share market price of one Preferred Share (as determined in accordance
with Section 14.1) for the Trading Day immediately prior to the date of such exercise or exchange. 
 14.3. Cash
in Lieu of Fractional Common Shares. The Company shall not be required to issue fractions of Common Shares or to distribute certificates which evidence fractional Common Shares upon the exercise or exchange of Rights. In lieu of such fractional
Common Shares, the Company shall pay to the registered holders of the Right Certificates with regard to which such fractional Common Shares would otherwise be issuable an amount in cash equal to the same fraction of the current market value of a
whole Common Share (as determined in accordance with Section 14.1) for the Trading Day immediately prior to the date of such exercise or exchange. 
 14.4. Waiver of Right to Receive Fractional Rights or Shares. The holder of a Right by the acceptance of the Rights expressly waives his right to receive any fractional Rights or any fractional shares upon
exercise or exchange of a Right, except as permitted by this Section 14. 
 Section 15. Rights of Action. All rights of action in
respect of this Agreement, except the rights of action given to the Rights Agent under Section 18, are vested in the respective registered holders of the Right Certificates (and, prior to the Distribution Date, the registered holders of the
Common Shares); and any registered holder of any Right Certificate (or, prior to the Distribution Date, of the Common Shares), without the consent of the Rights Agent or of the holder of any other Right Certificate (or, prior to the Distribution
Date, of the Common Shares), may, in his own behalf and for his own benefit, enforce this Agreement, and may institute and maintain any suit, action or proceeding against the Company to enforce this Agreement, or otherwise enforce or act in respect
of his right to exercise the Rights evidenced by such Right 

  

 24 

 
Certificate in the manner provided in such Right 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 under, and injunctive relief against
actual or threatened violations of, the obligations of any Person (including, without limitation, the Company) subject to this Agreement. 
 Section 16. Agreement of Right Holders. Every holder of a Right by accepting the same consents and agrees with the Company and the Rights Agent and with every other holder of a Right that: 
 (a) prior to the Distribution Date, the Rights will be transferable only in connection with the transfer of the Common Shares; 

(b) as of and after the Distribution Date, the Right Certificates are transferable only on the registry books of the Rights Agent if
surrendered at the office of the Rights Agent designated for such purpose, duly endorsed or accompanied by a proper instrument of transfer with all required certifications completed; and 
 (c) the Company and the Rights Agent may deem and treat the Person in whose name the Right Certificate (or, prior to the Distribution
Date, the associated Common Shares certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the Right Certificates or the associated Common Shares
certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent shall be affected by any notice to the contrary. 
 Section 17. Right Certificate Holder Not Deemed a Stockholder. No holder, as such, of any Right Certificate shall be entitled to vote, receive
dividends or be deemed for any purpose the holder of the Preferred Shares 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 Right
Certificate be construed to confer upon the holder of any Right Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting
thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in Section 24), or to receive dividends or subscription rights, or otherwise, until
the Right or Rights evidenced by such Right Certificate shall have been exercised in accordance with the provisions hereof. 
 Section 18.
Concerning the Rights Agent. The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder in accordance with a fee schedule to be mutually agreed upon and, from time to time, on demand of the
Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the administration and execution of this 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 negligence, bad faith or willful misconduct on the part of the Rights Agent, for anything done or omitted by the Rights Agent in connection with the
acceptance and administration of this Agreement, including the costs and expenses of defending against any claim of liability arising therefrom, directly or indirectly. 
  

 25 

 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 Right Certificate or certificate for the Preferred Shares or the Common Shares or for other securities of the Company, instrument of assignment or
transfer, power of attorney, endorsement, affidavit, letter, notice, instruction, direction, consent, certificate, statement, or other paper or document believed by it to be genuine and to be signed, 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. Any
corporation or limited liability company into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any corporation or limited liability company resulting from any merger or consolidation to
which the Rights Agent or any successor Rights Agent shall be a party, or any corporation or limited liability company succeeding to the corporate trust or stock transfer 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, provided that such corporation or limited liability company would be eligible
for appointment as a successor Rights Agent under the provisions of Section 21. In case at the time such successor Rights Agent shall succeed to the agency created by this Agreement, any of the Right Certificates shall have been countersigned
but not delivered, any such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Right Certificates so countersigned; and in case at that time any of the Right Certificates shall not have been
countersigned, any successor Rights Agent may countersign such Right Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such Right Certificates shall have the full
force provided in the Right Certificates and in this Agreement. 
 In case at any time the name of the Rights Agent shall be changed and at
such time any of the Right Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Right Certificates so countersigned; and in case at that time any of the Right
Certificates shall not have been countersigned, the Rights Agent may countersign such Right Certificates either in its prior name or in its changed name; and in all such cases such Right Certificates shall have the full force provided in the Right
Certificates and in this 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 Right Certificates, by their acceptance thereof, shall be bound: 
 20.1. Legal Counsel. The Rights Agent may consult with legal counsel selected by it (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. 
  

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 20.2. Certificates as to Facts or Matters. Whenever in the performance of its
duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in
respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by any one of the Chairman of the Board of Directors, the Chief Executive Officer, the President, the Chief Financial
Officer, any Vice President, the Treasurer, the Secretary or any Assistant Treasurer or 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. 
 20.3. Standard of Care. The Rights Agent shall be liable hereunder only for its own negligence, bad faith or willful misconduct. 
 20.4. Reliance on Agreement and Right Certificates. 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 Right
Certificates (except as to its countersignature thereof) or be required to verify the same, but all such statements and recitals are and shall be deemed to have been made by the Company only. 
 20.5. No Responsibility as to Certain Matters. 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 Right Certificate (except its countersignature thereof); nor shall it be
responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any Right Certificate; nor shall it be responsible for any change in the exercisability of the Rights (including the Rights becoming void
pursuant to Section 11.1.2) or any adjustment required under the provisions of Sections 3, 11, 13, 23 or 27 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 Right Certificates after actual notice of any such change or adjustment); nor shall it by any act hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any Preferred Shares or other securities to be issued pursuant to this Agreement or any Right Certificate or as to whether any Preferred Shares will, when so issued, be validly authorized and issued, fully paid and
nonassessable. 
 20.6. Further Assurance by Company. 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. 
 20.7. Authorized Company Officers. The Rights Agent is hereby
authorized and directed to accept instructions with respect to the performance of its duties hereunder from any one of the Chairman of the Board of Directors, the Chief Executive Officer, the President, the Chief Financial Officer, any Vice
President, the Treasurer, the Secretary or any Assistant Treasurer or Assistant Secretary of the Company, and to apply to such officers for advice or 

  

 27 

 
instructions in connection with its duties under this Agreement, 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 or for any delay in acting while waiting for these instructions. Any application by the Rights Agent for written instructions from the Company may, at the option of the Rights Agent, set forth in
writing any action proposed to be taken or omitted by the Rights Agent with respect to its duties or obligations under this Agreement and the date on and/or after which such action shall be taken or such omission shall be effective. The Rights Agent
shall not be liable to the Company for any action taken by, or omission of, the Rights Agent in accordance with a proposal included in any such application on or after the date specified therein (which date shall not be less than three Business Days
after the date any such officer actually receives such application, unless any such officer shall have consented in writing to an earlier date) unless, prior to taking of any such action (or the effective date in the case of omission), the Rights
Agent shall have received written instructions in response to such application specifying the action to be taken or omitted. 
 20.8. Freedom to Trade in Company Securities. 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 legal entity. 
 20.9. Reliance on Attorneys and Agents. 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, omission, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company resulting from any such act, omission, default, neglect or misconduct,
provided that reasonable care was exercised in the selection and continued employment thereof. 
 20.10. Incomplete Certificate. If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or transfer, the certificate contained in the form of assignment or the form of election to purchase set
forth on the reverse thereof, as the case may be, has not been completed to certify the holder is not an Acquiring Person (or an Affiliate or Associate thereof), the Rights Agent shall not take any further action with respect to such requested
exercise or transfer without first consulting with the Company. 
 20.11. Rights Holders List. At any time and
from time to time after the Distribution Date, upon the request of the Company, the Rights Agent shall promptly deliver to the Company a list, as of the most recent practicable date (or as of such earlier date as may be specified by the Company), of
the holders of record of Rights. 
 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 Shares and/or Preferred Shares, as applicable, by registered or certified mail.
Following the Distribution Date, 

  

 28 

 
the Company shall promptly notify the holders of the Right Certificates by first-class mail of any such resignation. 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 Shares and/or Preferred Shares, as applicable, by
registered or certified mail, and to the holders of the Right Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the resigning, removed, or incapacitated Rights Agent shall
remit to the Company, or to any successor Rights Agent designated by the Company, all books, records, funds, certificates or other documents or instruments of any kind then in its possession which were acquired by such resigning, removed or
incapacitated Rights Agent in connection with its services as Rights Agent hereunder, and shall thereafter be discharged from all duties and obligations hereunder. Following notice of such removal, resignation or incapacity, the Company shall
appoint a successor to such 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 Right Certificate (who shall, with such notice, submit his Right Certificate for inspection by the Company), then the registered holder of any Right Certificate may apply to any court
of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be a corporation organized and doing business under the laws of the United States or of the
State of New York or the State of California (or any other state of the United States so long as such corporation is authorized to do business as a banking institution in the State of New York or California) in good standing, having an office in the
State of New York or the State of California, which is authorized under such laws to exercise stock transfer or corporate trust powers and is subject to supervision or examination by Federal or state authority and which has at the time of its
appointment as Rights Agent a combined capital and surplus of at least $10 million. 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 Shares and/or Preferred Shares, as
applicable, and, following the Distribution Date, mail a notice thereof in writing to the registered holders of the Right Certificates. Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not affect
the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 
 Section 22. Issuance of New Right Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the Company may, at its option, issue new Right Certificates evidencing Rights in such form as
may be approved by its Board of Directors to reflect any adjustment or change in the Purchase Price and the number or kind or class of shares or other securities or property purchasable under the Right Certificates made in accordance with the
provisions of this Agreement. In addition, in connection with the issuance or sale of Common Shares following the Distribution Date and prior to the Expiration Date, the Company shall, with respect to Common Shares so issued or sold pursuant to the
exercise of stock options or under any employee plan or arrangement, granted or awarded, or upon exercise, 

  

 29 

 
conversion or exchange of securities hereinafter issued by the Company, in each case existing prior to the Distribution Date, issue Right Certificates
representing the appropriate number of Rights in connection with such issuance or sale; provided, however, that (i) no such Right 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 Right Certificate would be issued and (ii) no such Right 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. 
 23.1. Right to Redeem. The Board of Directors of the Company may, at its option, at any time prior to a Trigger Event, redeem
all but not less than all of the then outstanding Rights at a redemption price of $.01 per Right, appropriately adjusted to reflect any stock split, stock dividend, recapitalization or similar transaction occurring after the date hereof (such
redemption price being hereinafter referred to as the “Redemption Price”), and the Company may, at its option, pay the Redemption Price in Common Shares (based on the “current per share market price,” determined pursuant
to Section 11.4, of the Common Shares at the time of redemption), cash or any other form of consideration deemed appropriate by the Board of Directors. The redemption of the Rights by the Board of Directors may be made effective at such time,
on such basis and subject to such conditions as the Board of Directors in its sole discretion may establish. 
 23.2. Redemption Procedures. Immediately upon the action of the Board of Directors of the Company ordering the redemption of the Rights (or at such later time as the Board of Directors may establish for the effectiveness of such
redemption), and without any further action and without any notice, the right to exercise the Rights will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price for each Right so held. The Company
shall promptly give public notice of such redemption; provided, however, that the failure to give, or any defect in, any such notice shall not affect the validity of such redemption. The Company shall promptly give, or cause the Rights
Agent to give, notice of such redemption to the holders of the then outstanding Rights by mailing such notice to all such holders at their last addresses as they appear upon the registry books of the Rights Agent or, prior to the Distribution Date,
on the registry books of the transfer agent for the Common Shares. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption shall state the method
by which the payment of the Redemption Price will be made. Neither the Company nor any of its Affiliates or Associates may redeem, acquire or purchase for value any Rights at any time in any manner other than that specifically set forth in this
Section 23 or in Section 27, and other than in connection with the purchase, acquisition or redemption of Common Shares prior to the Distribution Date. 
 Section 24. Notice of Certain Events. In case the Company shall propose at any time after the earlier of the Shares Acquisition Date and the Distribution Date (a) to pay any dividend payable in stock of
any class to the holders of Preferred Shares or to make any other distribution to the holders of Preferred Shares (other than a regular periodic cash dividend at a rate not in excess of 125% of the rate of the last regular periodic cash dividend
theretofore paid or, in case 

  

 30 

 
regular periodic cash dividends have not theretofore been paid, at a rate not in excess of 50% of the average net income per share of the Company for the
four quarters ended immediately prior to the payment of such dividends, or a stock dividend on, or a subdivision, combination or reclassification of the Common Shares), or (b) to offer to the holders of Preferred Shares rights or warrants to
subscribe for or to purchase any additional Preferred Shares or shares of stock of any class or any other securities, rights or options, or (c) to effect any reclassification of its Preferred Shares (other than a reclassification involving only
the subdivision of outstanding Preferred Shares), or (d) to effect any consolidation or merger into or with, or to effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one or
more transactions, of 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to, any other Person (other than pursuant to a merger or other acquisition agreement of the type described in
Section 1.3(ii)(A)(z)), or (e) to effect the liquidation, dissolution or winding up of the Company, or (f) to declare or pay any dividend on the Common Shares payable in Common Shares or to effect a subdivision, combination or
consolidation of the Common Shares (by reclassification or otherwise than by payment of dividends in Common Shares), then, in each such case, the Company shall give to the Rights Agent and to each holder of a Right Certificate, in accordance with
Section 25, 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 Preferred Shares and/or Common Shares, if any such date is to be fixed, and such notice shall be so given in the case of any action
covered by clause (a) or (b) above at least ten (10) days prior to the record date for determining holders of the Preferred Shares for purposes of such action, and in the case of any such other action, at least ten (10) days
prior to the date of the taking of such proposed action or the date of participation therein by the holders of the Preferred Shares and/or Common Shares, whichever shall be the earlier. 
 In case any event set forth in Section 11.1.2 or Section 13 shall occur, then, in any such case, (i) the Company shall as soon as
practicable thereafter give to the Rights Agent and to each holder of a Right Certificate, in accordance with Section 25, a notice of the occurrence of such event, which notice shall describe the event and the consequences of the event to
holders of Rights under Section 11.1.2 and Section 13, and (ii) all references in this Section 24 to Preferred Shares shall be deemed thereafter to refer to Common Shares and/or, if appropriate, other securities. 
 Notwithstanding anything in this Agreement to the contrary, prior to the Distribution Date a filing by the Company with the Securities and Exchange
Commission shall constitute sufficient notice to the holders of securities of the Company, including the Rights, for purposes of this Agreement and no other notice need be given. 
  

 31 

 Section 25. Notices. Notices or demands authorized by this Agreement to be given or made by the
Rights Agent or by the holder of any Right Certificate to or on the Company shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows:

 Medivation, Inc. 
 55
Hawthorne Street, Suite 610 
 San Francisco, California 94105 
 Attention: President 
 Subject to the provisions of Section 21 and Section 24, any notice or demand authorized by
this Agreement to be given or made by the Company or by the holder of any Right Certificate to or on the Rights Agent shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in
writing with the Company) as follows: 
 American Stock Transfer & Trust Company 
 59 Maiden Lane 
 New York, New York 10038

 Attention: Shareholder Services Division 
 Notices or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Right Certificate (or, prior to the Distribution Date, to the holder of any certificate representing Common Shares)
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 26. Supplements and Amendments. For so long as the Rights are then redeemable, the Company may in its sole and absolute discretion, and
the Rights Agent shall, if the Company so directs, supplement or amend any provision of this Agreement in any respect without the approval of any holders of Rights or Common Shares. From and after the time that the Rights are no longer redeemable,
the Company may, and the Rights Agent shall, if the Company so directs, from time to time supplement or amend this Agreement without the approval of any holders of Rights (i) to cure any ambiguity or to correct or supplement any provision
contained herein which may be defective or inconsistent with any other provisions herein or (ii) to make any other changes or provisions in regard to matters or questions arising hereunder which the Company may deem necessary or desirable,
including but not limited to extending the Final Expiration Date; provided, however, that no such supplement or amendment shall adversely affect the interests of the holders of Rights as such (other than an Acquiring Person or an
Affiliate or Associate of an Acquiring Person), and no such supplement or amendment may cause the Rights again to become redeemable or cause this Agreement again to become amendable other than in accordance with this sentence; provided
further, that the right of the Board of Directors to extend the Distribution Date shall not require any amendment or supplement hereunder. 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 26, the Rights Agent shall execute such supplement or amendment. Without limiting the foregoing, at any time prior to such time as any Person becomes an Acquiring
Person, the Company and the Rights Agent may amend this Agreement to lower the thresholds set forth in Sections 1.1 and 3.1 to not less than the greater of (i) any percentage greater than the largest percentage of the outstanding Common Shares
then known by the Company to be beneficially owned by any Person (other than an Exempt Person) and (ii) 10%. 
  

 32 

 Section 27. Exchange. 
 27.1. Exchange of Common Shares for Rights. The Board of Directors of the Company may, at its option, at any time after the
occurrence of a Trigger Event, exchange Common Shares for 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 11.1.2) by exchanging at an
exchange ratio of one Common Share per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (such amount per Right being hereinafter referred to as the “Exchange
Consideration”). Notwithstanding the foregoing, the Board of Directors shall not be empowered to effect such exchange at any time after any Acquiring Person shall have become the Beneficial Owner of 50% or more of the Common Shares then
outstanding. From and after the occurrence of an event specified in Section 13.1, any Rights that theretofore have not been exchanged pursuant to this Section 27.1 shall thereafter be exercisable only in accordance with Section 13 and
may not be exchanged pursuant to this Section 27.1. The exchange of the Rights by the Board of Directors may be made effective at such time, on such basis and with such conditions as the Board of Directors in its sole discretion may establish.

 27.2. Exchange Procedures. Immediately upon the action of the Board of Directors of the Company ordering the
exchange for any Rights pursuant to Section 27.1 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 the Exchange
Consideration. 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 shall state the method by which the exchange of the Common Shares 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 the Rights that have become void pursuant to the provisions of Section 11.1.2) held by each holder of Rights. 
 27.3. Insufficient Shares. The Company may at its option substitute, and, in the event that there shall not be sufficient
Common Shares issued but not outstanding or authorized but unissued to permit an exchange of Rights for Common Shares as contemplated in accordance with this Section 27, the Company shall substitute to the extent of such insufficiency, for each
Common Share that would otherwise be issuable upon exchange of a Right, a number of Preferred Shares or fraction thereof (or equivalent preferred stock, as such term is defined in Section 11.2) such that the current per share market price
(determined pursuant to Section 11.4) of one Preferred Share (or equivalent preferred share) multiplied by such number or fraction is equal to the current per share market price of one Common Share (determined pursuant to Section 11.4) as
of the date of such exchange. 
 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. 
  

 33 

 Section 29. Benefits of this Agreement. Nothing in this Agreement 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 Agreement; but
this Agreement shall be for the sole and exclusive benefit of the Company, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Shares). 
 Section 30. Determination and Actions by the Board of Directors. The Board of Directors of the Company shall have the exclusive power and
authority to administer this Agreement and to exercise the rights and powers specifically granted to the Board of Directors of the Company or to the Company, or as may be necessary or advisable in the administration of this Agreement, including,
without limitation, the right and power to (i) interpret the provisions of this Agreement and (ii) make all determinations deemed necessary or advisable for the administration of this Agreement (including, without limitation, a
determination to redeem or not redeem the Rights or amend this Agreement). All such actions, calculations, interpretations and determinations (including, for purposes of clause (y) below, all omissions with respect to the foregoing) that are
done or made by the Board of Directors of the Company in good faith shall (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights, as such, and all other parties, and (y) not subject the Board of
Directors to any liability to the holders of the Rights. 
 Section 31. Severability. If any term, provision, covenant or restriction
of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and
shall in no way be affected, impaired or invalidated. 
 Section 32. Governing Law. This Agreement and each Right Certificate issued
hereunder shall be deemed to be a contract made under the laws of the State of California and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts to be made and performed entirely
within such State. 
 Section 33. Counterparts. This 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 Heading. 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. 
  

 34 

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

					
	MEDIVATION, INC.
		
	By	 	/s/ C. Patrick Machado
		 	Name:	 	C. Patrick Machado
		 	Title:	 	 Senior Vice President and
 Chief Financial
Officer

	
	AMERICAN STOCK TRANSFER & TRUST COMPANY
		
	By	 	/s/ Herbert J. Lemmer
		 	Name:	 	 Herbert J. Lemmer

		 	Title:	 	Vice President

  

 35 

 EXHIBIT A 
 FORM OF 
 CERTIFICATE OF DESIGNATIONS 
 of 
 SERIES C JUNIOR PARTICIPATING PREFERRED STOCK 
 of 
 MEDIVATION, INC. 
 (Pursuant to Section 151 of the 
 Delaware
General Corporation Law) 
  

 Medivation, Inc., a corporation organized and existing under the General Corporation Law of the State of Delaware (hereinafter called the “Corporation”), hereby certifies that the following resolution was adopted by the
Board of Directors of the Corporation as required by Section 151 of the General Corporation Law at a meeting duly called and held on December 4, 2006. 
 RESOLVED, that pursuant to the authority granted to and vested in the Board of Directors of this Corporation (hereinafter called the “Board of Directors” or the “Board”) in accordance
with the provisions of the Certificate of Incorporation of this Corporation, the Board of Directors hereby creates a series of Preferred Stock, par value $0.01 per share (the “Preferred Stock”), of the Corporation and hereby states
the designation and number of shares, and fixes the relative rights, powers and preferences, and qualifications, limitations and restrictions thereof as follows: 
 Section 1. Designation and Amount. The shares of such series shall be designated as “Series C Junior Participating Preferred Stock” (the “Series C Preferred Stock”) and the number of
shares constituting the Series C Preferred Stock shall be 50,000. Such number of shares may be increased or decreased by resolution of the Board of Directors; provided, that no decrease shall reduce the number of shares of Series C
Preferred Stock to a number less than the number of shares then outstanding plus the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants or upon the conversion of any outstanding securities issued by
the Corporation convertible into Series C Preferred Stock. 
 Section 2. Dividends and Distributions. 
 (A) Subject to the prior and superior rights of the holders of any shares of any class or series of stock of this Corporation ranking
prior and superior to the Series C Preferred Stock with respect to dividends, the holders of shares of Series C Preferred Stock, in preference to the holders of Common Stock, par value $0.01 per share (the 

  

 A-1 

 
“Common Stock”), of the Corporation, and of any other stock ranking junior to the Series C 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 first 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 C Preferred Stock, in an amount per share (rounded to the nearest cent)
equal to the greater of (a) $1.00 or (b) subject to the provision for adjustment hereinafter set forth, 1000 times the aggregate per share amount of all cash dividends, and 1000 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 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 C Preferred Stock. In the event the Corporation shall at any time declare
or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision, combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of
Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the amount to which holders of shares of Series C Preferred Stock were entitled immediately prior to such event under clause (b) of the preceding
sentence shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that
were outstanding immediately prior to such event. 
 (B) The Corporation shall declare a dividend or distribution on the
Series C Preferred Stock as provided in paragraph (A) of this Section 2 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 $1.00 per share on the Series C 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 C Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issue of such shares, unless the date of issue of such shares is prior to the record date for the first 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 C 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 C Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be 

  

 A-2 

 
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 C Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record date shall be not more than 60 days prior to the date fixed for the payment thereof. 

Section 3. Voting Rights. The holders of shares of Series C Preferred Stock shall have the following voting rights: 
 (A) Subject to the provision for adjustment hereinafter set forth, each share of Series C Preferred Stock shall entitle the holder thereof
to 1000 votes on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision,
combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the
number of votes per share to which holders of shares of Series C Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such number by a fraction, the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
 (B) Except as otherwise provided herein, in any other Certificate of Designations creating a series of Preferred Stock or any similar
stock, or by law, the holders of shares of Series C Preferred Stock and the holders of shares of Common Stock and any other capital stock of the Corporation having general voting rights shall vote together as one class on all matters submitted to a
vote of stockholders of the Corporation. 
 (C) Except as set forth herein, or as otherwise provided by law, holders of Series
C 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 C 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 C Preferred Stock outstanding shall have been paid in full, the Corporation shall not: 
 (i) declare or pay dividends, or make any other distributions, on any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series C Preferred Stock; 

 

 A-3 

 (ii) declare or pay dividends, or make any other distributions, on any shares of stock
ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series C Preferred Stock, except dividends paid ratably on the Series C Preferred Stock and all such parity stock on which dividends are payable or
in arrears in proportion to the total amounts to which the holders of all such shares are then entitled; 
 (iii) redeem or
purchase or otherwise acquire for consideration shares of any stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series C Preferred Stock, provided that the Corporation may at any time redeem,
purchase or otherwise acquire shares of any such junior stock in exchange for shares of any stock of the Corporation ranking junior (both as to dividends and upon dissolution, liquidation or winding up) to the Series C Preferred Stock; or

 (iv) redeem or purchase or otherwise acquire for consideration any shares of Series C Preferred Stock, or any shares of
stock ranking on a parity with the Series C 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 C Preferred Stock purchased or otherwise acquired by the Corporation in any manner whatsoever
shall be retired and canceled 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 subject to
the conditions and restrictions on issuance set forth herein, in the Certificate of Incorporation, or in any other Certificate of Designations creating a series of Preferred Stock or any similar stock or as otherwise required by law. 
 Section 6. Liquidation, Dissolution or Winding Up. (A) Upon any liquidation, dissolution or winding up of the Corporation, voluntary or
otherwise no distribution shall be made (1) to the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series C Preferred Stock unless, prior thereto, the holders of shares of
Series C Preferred Stock shall have received an amount per share (the “Series C Liquidation Preference”) equal to $1000 per share, plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared, to
the date of such payment, provided that the holders of shares of Series C Preferred Stock shall be entitled to receive an aggregate amount per share, subject to the provision for adjustment hereinafter set forth, equal to 1000 times the aggregate
amount to be distributed per share to holders of shares of 

  

 A-4 

 
Common Stock, or (2) to the holders of shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with
the Series C Preferred Stock, except distributions made ratably on the Series C Preferred Stock and all such parity stock in proportion to the total amounts to which the holders of all such shares are entitled upon such liquidation, dissolution or
winding up. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision, combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the aggregate amount to which holders of shares of Series C Preferred Stock were
entitled immediately prior to such event under the proviso in clause (1) 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 are outstanding immediately prior to such event. 
 (B) In the event, however, that there are not sufficient assets available to permit payment in full of the Series C Liquidation Preference and the liquidation preferences of all other classes and series of stock of
the Corporation, if any, that rank on a parity with the Series C Preferred Stock in respect thereof, then the assets available for such distribution shall be distributed ratably to the holders of the Series C Preferred Stock and the holders of such
parity shares in proportion to their respective liquidation preferences. 
 (C) Neither the merger or consolidation of the
Corporation into or with another corporation nor the merger or consolidation of any other corporation into or with the Corporation shall be deemed to be a liquidation, dissolution or winding up of the Corporation within the meaning of this
Section 6. 
 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 each share of Series C Preferred Stock shall at the same time be
similarly exchanged or changed into an amount per share, subject to the provision for adjustment hereinafter set forth, equal to 1000 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 declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision, combination or
consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the amount set forth
in the preceding sentence with respect to the exchange or change of shares of Series C 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. 
  

 A-5 

 Section 8. No Redemption. The shares of Series C Preferred Stock shall not be redeemable by the
Company. 
 Section 9. Rank. The Series C Preferred Stock shall rank, with respect to the payment of dividends and the distribution of
assets upon liquidation, dissolution or winding up, junior to all series of any other class of the Corporation’s Preferred Stock, except to the extent that any such other series specifically provides that it shall rank on a parity with or
junior to the Series C Preferred Stock. 
 Section 10. Amendment. At any time any shares of Series C Preferred Stock are outstanding,
the Certificate of Incorporation of the Corporation shall not be amended in any manner which would materially alter or change the powers, preferences or special rights of the Series C Preferred Stock so as to affect them adversely without the
affirmative vote of the holders of at least two-thirds of the outstanding shares of Series C Preferred Stock, voting separately as a single class. 
 Section 11. Fractional Shares. Series C Preferred Stock may be issued in fractions of a share that shall entitle the holder, in proportion to such holder’s fractional shares, to exercise voting rights, receive dividends,
participate in distributions and to have the benefit of all other rights of holders of Series C Preferred Stock. 
 IN WITNESS WHEREOF, this
Certificate of Designations is executed on behalf of the Corporation by its Chairman of the Board this          day of December 2006. 
  

	
	
	   
	President

  

 A-6 

 EXHIBIT B 
 [Form of Right Certificate] 
  

			
	Certificate No. R-	 	                 Rights

 NOT EXERCISABLE AFTER JANUARY 3, 2017 OR EARLIER IF NOTICE OF REDEMPTION OR EXCHANGE IS GIVEN OR IF
THE COMPANY IS MERGED OR ACQUIRED PURSUANT TO AN AGREEMENT OF THE TYPE DESCRIBED IN SECTION 1.3(ii)(A)(z) OF THE AGREEMENT. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $.01 PER RIGHT, AND TO EXCHANGE ON THE TERMS SET FORTH IN THE AGREEMENT. UNDER
CERTAIN CIRCUMSTANCES (SPECIFIED IN SECTION 11.1.2 OF THE AGREEMENT), RIGHTS BENEFICIALLY OWNED BY OR TRANSFERRED TO AN ACQUIRING PERSON (AS DEFINED IN THE AGREEMENT), OR ANY SUBSEQUENT HOLDER OF SUCH RIGHTS WILL BECOME NULL AND VOID AND WILL NO
LONGER BE TRANSFERABLE. 
 Right Certificate 
 MEDIVATION, INC. 
 This certifies that
                , or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms,
provisions and conditions of the Rights Agreement, dated as of December 4, 2006, as the same may be amended from time to time (the “Agreement”), between Medivation, Inc., a Delaware corporation (the “Company”), and American
Stock Transfer & Trust Company, a New York corporation, as Rights Agent (the “Rights Agent”), to purchase from the Company at any time after the Distribution Date and prior to 5:00 P.M. (New York time) on January 3, 2017, at
the offices of the Rights Agent, or its successors as Rights Agent, designated for such purpose, one one-thousandth of a fully paid, nonassessable share of Series C Junior Participating Preferred Stock, par value $0.01 per share (the “Preferred
Shares”) of the Company, at a purchase price of $130.00 per one one-thousandth of a Preferred Share, subject to adjustment (the “Purchase Price”), upon presentation and surrender of this Right Certificate with the Form of Election to
Purchase and certification duly executed. The number of Rights evidenced by this Right Certificate (and the number of one one-thousandths of a Preferred Share which may be purchased upon exercise thereof) set forth above, and the Purchase Price set
forth above, are the number and Purchase Price as of December 4, 2006 based on the Preferred Shares as constituted at such date. Capitalized terms used in this Right Certificate without definition shall have the meanings ascribed to them in the
Agreement. As provided in the Agreement, the Purchase Price and the number of Preferred Shares which may be purchased upon the exercise of the Rights evidenced by this Right Certificate are subject to modification and adjustment upon the happening
of certain events. 
 This Right Certificate is subject to all of the terms, provisions and conditions of the Agreement, which terms,
provisions and conditions are hereby incorporated herein by reference and made a part hereof and to which Agreement reference is hereby made for a full description 

  

 B-1 

 
of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Right
Certificates. Copies of the Agreement are on file at the principal offices of the Company and the Rights Agent. 
 This Right Certificate,
with or without other Right Certificates, upon surrender at the offices of the Rights Agent designated for such purpose, may be exchanged for another Right Certificate or Right Certificates of like tenor and date evidencing Rights entitling the
holder to purchase a like aggregate number of one one-thousandths of a Preferred Share as the Rights evidenced by the Right Certificate or Right Certificates surrendered shall have entitled such holder to purchase. If this Right Certificate shall be
exercised in part, the holder shall be entitled to receive upon surrender hereof another Right Certificate or Right Certificates for the number of whole Rights not exercised. 
 Subject to the provisions of the Agreement, the Board of Directors may, at its option, (i) redeem the Rights evidenced by this Right Certificate at
a redemption price of $0.01 per Right or (ii) exchange Common Shares for the Rights evidenced by this Certificate, in whole or in part. 
 No fractional Preferred Shares will be issued upon the exercise of any Right or Rights evidenced hereby (other than fractions of Preferred Shares which are integral multiples of one one-thousandth of a Preferred Share, which may, at the
election of the Company, be evidenced by depository receipts), but in lieu thereof a cash payment will be made, as provided in the Agreement. 
 No holder of this Right Certificate, as such, shall be entitled to vote or receive dividends or be deemed for any purpose the holder of the Preferred Shares 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 Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter
submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in the Agreement), or to receive dividends or
subscription rights, or otherwise, until the Right or Rights evidenced by this Right Certificate shall have been exercised as provided in the Agreement. 
 If any term, provision, covenant or restriction of the 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 the Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 
 This
Right Certificate shall not be valid or binding for any purpose until it shall have been countersigned by the Rights Agent. 
  

 B-2 

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

									
	Attest:	 		 	MEDIVATION
					
	By	 	  	 		 	By	 	  
		 	Title:	 		 		 	Title:

  

			
	Countersigned:
	
	AMERICAN STOCK TRANSFER & TRUST COMPANY, as Rights Agent
		
	By	 	  
		 	Authorized Signature

  

 B-3 

 [Form of Reverse Side of Right Certificate] 
 FORM OF ASSIGNMENT 
 (To be executed by the registered holder if such holder 

desires to transfer the Right Certificate.) 
 FOR VALUE RECEIVED                                  
                                        
                                        
                                        
                                        
             
 hereby sells, assigns and transfers unto                           
                                        
                                        
                                        
                                     
                                       
                                        
                                        
                                        
                                        
                                        
                    
                                       
                                        
                                        
                                        
                                        
                                        
                    
 (Please print name
and address of transferee) 
 Rights evidenced by this Right Certificate, together with all right, title and interest therein, and does hereby irrevocably
constitute and appoint                      Attorney, to transfer the within Right Certificate on the books of the within-named Company, with
full power of substitution. 
 Dated:
                     
  

	
	
	   
	Signature

  

	
	
	   
	Signature Guaranteed:

 Signatures must be guaranteed by an “eligible guarantor institution” as defined in Rule
17Ad-15 promulgated under the Securities Exchange Act of 1934, as amended. 
                                       
                                        
                                        
                                        
                                        
                                        
                    
 The undersigned hereby certifies
that: 
 (1) the Rights evidenced by this Right Certificate are not beneficially owned by and are not being assigned to an Acquiring Person
or an Affiliate or an Associate thereof; and 
 (2) after due inquiry and to the best knowledge of the undersigned, the undersigned did not
acquire the Rights evidenced by this Right Certificate from any person who is, was or subsequently became an Acquiring Person or an Affiliate or Associate thereof. 
 Dated:                          
  

	
	
	   
	Signature

  

 B-4 

 FORM OF ELECTION TO PURCHASE 
 (To be executed if holder desires to 
 exercise the Right Certificate.) 
 To: Medivation, Inc. 
 The undersigned hereby irrevocably
elects to exercise                                  Rights represented by this
Right Certificate to purchase the Preferred Shares issuable upon the exercise of such Rights (or such other securities or property 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: 
  

	
	
	   
	(Please print name and address)
	
	  

 If such number of Rights shall not be all the Rights evidenced by this Right Certificate, a new Right Certificate
for the balance remaining 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:
	
	   

 Signatures must be guaranteed by an “eligible guarantor institution” as defined in Rule
17Ad-15 promulgated under the Securities Exchange Act of 1934, as amended. 
  

 B-5 

 The undersigned hereby certifies that: 
 (1) the Rights evidenced by this Right Certificate are not beneficially owned by and are not being assigned to an Acquiring Person or an Affiliate or an Associate thereof; and 
 (2) after due inquiry and to the best knowledge of the undersigned, the undersigned did not acquire the Rights evidenced by this Right Certificate from
any person who is, was or subsequently became an Acquiring Person or an Affiliate or Associate thereof. 
 Dated:
                         
  

	
	
	   
	Signature

                                       
                                        
                                        
                                        
                                        
                                        
                    
 NOTICE

 The signature in the foregoing Form of Assignment and Form of Election to Purchase must conform to the name as written upon the
face of this Right Certificate in every particular, without alteration or enlargement or any change whatsoever. 
 In the event the
certification set forth above in the Form of Assignment or Form of Election to Purchase is not completed, the Company will deem the beneficial owner of the Rights evidenced by this Right Certificate to be an Acquiring Person or an Affiliate or
Associate hereof and such Assignment or Election to Purchase will not be honored. 
  

 B-6 

 EXHIBIT C 
 As described in the Rights Agreement, Rights which are 
 held by or have been held by an Acquiring
Person or Associates 
 or Affiliates thereof (as defined in the Rights Agreement) and certain 
 transferees thereof shall become null and void and will no longer be transferable. 
 SUMMARY OF RIGHTS TO PURCHASE 
 PREFERRED SHARES 
 On December 4, 2006 the Board of Directors of Medivation, Inc. (the “Company”) declared a dividend of one preferred share purchase
right (a “Right”) for each share of common stock, $0.01 par value (the “Common Shares”), of the Company outstanding at the close of business on January 3, 2007 (the “Record Date”). As long as
the Rights are attached to the Common Shares, the Company will issue one Right (subject to adjustment) with each new Common Share so that all such shares will have attached Rights. When exercisable, each Right will entitle the registered holder to
purchase from the Company one one-thousandth of a share of Series C Junior Participating Preferred Stock (the “Preferred Shares”) at a price of $130.00 per one one-thousandth of a Preferred Share, subject to adjustment (the
“Purchase Price”). The description and terms of the Rights are set forth in a Rights Agreement, dated as of December 4, 2006, as the same may be amended from time to time (the “Agreement”), between the Company
and American Stock Transfer & Trust Company, as Rights Agent (the “Rights Agent”). 
 Until the earlier to occur of
(i) ten (10) days following a public announcement that a person or group of affiliated or associated persons has acquired, or obtained the right to acquire, beneficial ownership of 20% or more of the Common Shares (an “Acquiring
Person”) or (ii) ten (10) business days (or such later date as may be determined by action of the Board of Directors prior to such time as any person or group of affiliated persons becomes an Acquiring Person) following the
commencement or announcement of an intention to make a tender offer or exchange offer the consummation of which would result in the beneficial ownership by a person or group of 20% or more of the Common Shares (the earlier of (i) and
(ii) being called the “Distribution Date”), the Rights will be evidenced, with respect to any of the Common Share certificates outstanding as of the Record Date, by such Common Share certificate together with a copy of this
Summary of Rights. 
 The Agreement provides that until the Distribution Date (or earlier redemption, exchange, termination, or expiration of
the Rights), the Rights will be transferred with and only with the Common Shares. Until the Distribution Date (or earlier redemption or expiration of the Rights), new Common Share certificates issued after the close of business on the Record Date
upon transfer or new issuance of the Common Shares will contain a notation incorporating the Agreement by reference. Until the Distribution Date (or earlier redemption, exchange, termination or expiration of the Rights), the surrender for transfer
of any certificates for Common Shares, with or without such notation or a copy of this Summary of Rights, will also constitute the transfer of the Rights associated with the Common Shares represented by such certificate. As soon as practicable
following the Distribution Date, separate certificates evidencing the Rights (“Right Certificates”) will be mailed to holders of record of the Common Shares as of the close of business on the Distribution Date and such separate
Right Certificates alone will evidence the Rights. 
  

 C-1 

 The Rights are not exercisable until the Distribution Date. The Rights will expire on January 3,
2017, subject to the Company’s right to extend such date (the “Final Expiration Date”), unless earlier redeemed or exchanged by the Company or terminated. 
 Each Preferred Share purchasable upon exercise of the Rights will be entitled, when, as and if declared, to a minimum preferential quarterly dividend
payment of $1.00 per share but will be entitled to an aggregate dividend of 1000 times the dividend, if any, declared per Common Share. In the event of liquidation, dissolution or winding up of the Company, the holders of the Preferred Shares will
be entitled to a minimum preferential liquidation payment of $1000 per share (plus any accrued but unpaid dividends) but will be entitled to an aggregate payment of 1000 times the payment made per Common Share. Each Preferred Share will have 1000
votes and will vote together with the Common Shares. Finally, in the event of any merger, consolidation or other transaction in which Common Shares are exchanged, each Preferred Share will be entitled to receive 1000 times the amount received per
Common Share. Preferred Shares will not be redeemable. These rights are protected by customary antidilution provisions. Because of the nature of the Preferred Share’s dividend, liquidation and voting rights, the value of one one-thousandth of a
Preferred Share purchasable upon exercise of each Right should approximate the value of one Common Share. 
 The Purchase Price payable, and
the number of Preferred Shares 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 Shares, (ii) upon the grant to holders of the Preferred Shares of certain rights or warrants to subscribe for or purchase Preferred Shares or convertible securities at less than the current market price of the
Preferred Shares or (iii) upon the distribution to holders of the Preferred Shares of evidences of indebtedness, cash, securities or assets (excluding regular periodic cash dividends at a rate not in excess of 125% of the rate of the last
regular periodic cash dividend theretofore paid or, in case regular periodic cash dividends have not theretofore been paid, at a rate not in excess of 50% of the average net income per share of the Company for the four quarters ended immediately
prior to the payment of such dividend, or dividends payable in Preferred Shares (which dividends will be subject to the adjustment described in clause (i) above)) or of subscription rights or warrants (other than those referred to above).

 In the event that a Person becomes an Acquiring Person or if the Company were the surviving corporation in a merger with an Acquiring
Person or any affiliate or associate of an Acquiring Person and the Common Shares were not changed or exchanged, each holder of a Right, other than Rights that are or were acquired or beneficially owned by the Acquiring Person (which Rights will
thereafter be void), will thereafter have the right to receive upon exercise that number of Common Shares having a market value of two times the then current Purchase Price of the Right. In the event that, after a person has become an Acquiring
Person, the Company were acquired in a merger or other business combination transaction or more than 50% of its assets or earning power were sold, proper provision shall be made so that each holder of a Right shall thereafter have the right to
receive, upon the exercise thereof at the then current Purchase 

  

 C-2 

 
Price of the Right, that number of shares of common stock of the acquiring company which at the time of such transaction would have a market value of two
times the then current Purchase Price of the Right. 
 At any time after a Person becomes an Acquiring Person and prior to the earlier of one
of the events described in the last sentence of the previous paragraph or the acquisition by such Acquiring Person of 50% or more of the outstanding Common Shares, the Board of Directors may cause the Company to exchange the Rights (other than
Rights owned by an Acquiring Person which will have become void), in whole or in part, for Common Shares at an exchange rate of one Common Share per Right (subject to adjustment). 
 No adjustment in the Purchase Price will be required until cumulative adjustments require an adjustment of at least 1% in such Purchase Price. No
fractional Preferred Shares or Common Shares will be issued (other than fractions of Preferred Shares which are integral multiples of one one-thousandth of a Preferred Share, which may, at the election of the Company, be evidenced by depository
receipts), and in lieu thereof, a payment in cash will be made based on the market price of the Preferred Shares or Common Shares on the last trading date prior to the date of exercise. 
 The Rights may be redeemed in whole, but not in part, at a price of $0.01 per Right (the “Redemption Price”) by the Board of Directors
at any time prior to the time that an Acquiring Person has become such. The redemption of the Rights may be made effective at such time, on such basis and with such conditions as the Board of Directors in its sole discretion may establish.
Immediately upon any redemption of the Rights, the right to exercise the Rights will terminate and the only right of the holders of Rights will be to receive the Redemption Price. 
 Until a Right is exercised, the holder thereof, as such, will have no rights as a stockholder of the Company beyond those as an existing stockholder,
including, without limitation, the right to vote or to receive dividends. 
 Any of the provisions of the Agreement may be amended by the
Board of Directors of the Company for so long as the Rights are then redeemable, and after the Rights are no longer redeemable, the Company may amend or supplement the Agreement in any manner that does not adversely affect the interests of the
holders of the Rights (other than an Acquiring Person or an affiliate or associate of an Acquiring Person). The Company may at any time prior to such time as any person becomes an Acquiring Person amend the Agreement to lower the thresholds
described above to no less than the greater of (i) any percentage greater than the largest percentage of the outstanding Common Shares then known by the Company to be beneficially owned by any person or group of affiliated or associated persons
(other than an Exempt Person) and (ii) 10%. 
 A copy of the Agreement has been filed with the Securities and Exchange Commission as an
Exhibit to a Current Report on Form 8-K. A copy of the Agreement is available free of charge from the Company. This summary description of the Rights does not purport to be complete and is qualified in its entirety by reference to the Agreement,
which is incorporated herein by reference. 
  

 C-3Contribution Agreement

 Exhibit 10.1 
 CONTRIBUTION AGREEMENT 
 AMONG 
 CARE FOR KIDS – USA, LLC, 
 a Delaware limited liability company, 
 CENTRAL’S TOOTH DOCTOR FOR KIDS, LLC, 
 an
Arizona limited liability company, 
 A TOOTH DOCTOR FOR KIDS, LLC, 
 a Nevada limited liability company, 
 EAST VALLEY’S TOOTH DOCTOR, L.L.C.,

 an Arizona limited liability company, 
 ARIZONA’S TOOTH DOCTOR FOR KIDS – GLOBE, LLC, 
 an Arizona limited liability company, 
 ARIZONA’S KIDS DENTAL CARE, LLC, 
 an
Arizona limited liability company, 
 ARIZONA’S TOOTH DOCTOR, PC, 
 an Arizona professional corporation, 
 BRENCHLEY DENTAL CONTRACTING, PLC, 
 an Arizona professional corporation, 
 ERICKSON
FAMILY TRUST dated July 20, 2000, 
 with Christine E. Erickson and Jeffrey T. Erickson as Trustees, 
 ERICKSON INVESTMENT LIMITED PARTNERSHIP, 
 a
Nevada limited partnership, 
 ERICKSON CHILDREN’S EDUCATIONAL TRUST dated December 29, 1999, 
 with Christine E. Erickson and Jeffrey T. Erickson as Trustees, 
 AND 
 JEFFREY T. ERICKSON, D.D.S., 
 CHRISTOPHER BARNEY, D.D.S., 
 EMERICO GOMEZ, JR., D.D.S. 
 PAUL BRENCHLEY, D.D.S. 
 CHRISTE D. ERICKSON

 October 25, 2006 

					
	ARTICLE I	  	CONTRIBUTION OF PROPERTY	  	2
			
	 1.1.
	  	Contribution of Property	  	2
			
	 1.2.
	  	Excluded Assets	  	3
			
	 1.3.
	  	Liabilities Assumed	  	3
			
	 1.4.
	  	Consideration	  	4
			
	 1.5.
	  	Closing	  	7
			
	 1.6.
	  	Conveyance Documents	  	7
			
	 1.7.
	  	Possession	  	8
			
	ARTICLE II	  	REPRESENTATIONS AND WARRANTIES OF THE PARTIES	  	8
			
	 2.1.
	  	Representations and Warranties of Care for Kids	  	8
			
	 2.2.
	  	Representations and Warranties of Sellers and Owners	  	8
			
	ARTICLE III	  	COVENANTS OF THE PARTIES	  	8
			
	 3.1.
	  	Mutual Covenants	  	8
			
	 3.2.
	  	Covenants of Tooth Doctor	  	9
			
	 3.3.
	  	Closing Deliveries of Care for Kids	  	12
			
	 3.4.
	  	Employment and Employee Benefits Matters	  	13
			
	 3.5.
	  	Additional Terms	  	14
			
	ARTICLE IV	  	INDEMNIFICATION	  	15
			
	 4.1.
	  	Survival of Representations, Warranties, and Agreements	  	15
			
	 4.2.
	  	Indemnification	  	15
			
	 4.3.
	  	Limitations on Indemnification	  	16
			
	 4.4.
	  	Procedure for Indemnification with Respect to Third-Party Claims	  	16
			
	 4.5.
	  	Procedure for Indemnification with Respect to Non-Third-Party Claims	  	17
			
	 4.6.
	  	Right of Setoff	  	18
			
	ARTICLE V	  	MISCELLANEOUS	  	18
			
	 5.1.
	  	Power of Attorney	  	18
			
	 5.2.
	  	Notices	  	18
			
	 5.3.
	  	Legal Representation; No Tax Advice	  	19
			
	 5.4
	  	Non-Waiver	  	19
			
	 5.5.
	  	Genders and Numbers	  	19
			
	 5.6.
	  	Headings	  	19
			
	 5.7.
	  	Counterparts	  	19
			
	 5.8.
	  	Entire Agreement	  	20

  

 -i- 

					
	 5.9.
	  	No Third Party Beneficiaries	  	20
			
	 5.10.
	  	Governing Law	  	20
			
	 5.11.
	  	Successors; Assignment	  	20
			
	 5.12.
	  	Remedies	  	20
			
	 5.13.
	  	Expenses	  	20
			
	 5.14.
	  	Severability	  	20
			
	 5.15.
	  	Further Assurances	  	20
			
	 5.16.
	  	Financial Calculations	  	21

  

			
	Exhibit 1.4(a)	 	Settlement Statement
	Exhibit 1.4	 	Allocation of Contribution
	Exhibit A	 	Representations and Warranties of Care for Kids
	Exhibit B	 	Representations and Warranties of Tooth Doctor
	Exhibit C	 	Additional Covenants; Conditions; and Terms

  

 -ii- 

 DEFINED TERMS LOCATOR LIST 
  

			
	 Term
	  	 Section

	2007 EBITDA	  	1.4(d)
		
	Accounts Receivable	  	1.1(h)
	Acquisition Proposal	  	Exhibit C, Section 1(b)
	Additional Documents	  	4.1(a)
	ADP-CFK	  	1.4(d)
	ADPI	  	1.4(d)
	Affiliate	  	3.2(b), except Exhibit B, Section B.19(a) (for Section B.19 only) and Section B.21 (for Section B.21 only)
	Affiliated Company	  	3.2(b)
	Agent	  	5.1
	Agreement	  	Introduction
	AHCCCS	  	Background Information
	Applicable Laws	  	Exhibit B, Section B.11
	Arizona Subsidiary	  	Introduction
	Assignable Permits	  	1.1(e)
	Assignment and Assumption Agreement	  	1.4(b)
	Assignment and Assumption of Lease	  	3.2(d)(viii)
	Assignment, Assumption, and Amendment of Lease	  	3.2(d)(vii)
	Assumed Contracts	  	1.1(d)
	Assumed Liabilities	  	1.3
		
	Brenchley PLC	  	Introduction
	Business	  	Background Information
		
	Care for Kids	  	Introduction
	Cash Consideration	  	1.4(a)
	Central	  	Introduction
	Claim Event	  	3.4(b)(iv)
	Closing	  	1.5
	Closing Date	  	1.5
	COBRA	  	3.4(b)(v)
	Code	  	1.4
	Contributed Property	  	1.1
	Contribution	  	Background Information
	Credit Balances	  	4.3(f)

  

 -i- 

			
	Damages	  	4.2(a)
	Dentist Agreements	  	1.1(l)
	Dentistry Restricted Territory	  	3.2(b)
	Doctor for Kids	  	Introduction
	Dr. Barney	  	Introduction
	Dr. Brenchley	  	Introduction
	Dr. Erickson	  	Introduction
	Dr. Gomez	  	Introduction
		
	Earn Out Payment	  	1.4(d)
	East Valley	  	Introduction
	EBITDA	  	1.4(d)
	Effective Time	  	1.5
	EILP	  	Introduction
	Employee Plans	  	Exhibit B, Section B.19(a)
	Entity	  	Exhibit A, Section A.3
	Environmental Laws	  	Exhibit B, Section B.11
	Erickson Children’s Trust	  	Introduction
	Erickson Living Trust	  	Introduction
	ERISA	  	Exhibit B, Section B.19(a)
	Estimated Closing Balance Sheet	  	Exhibit B, Section B.7(c)
	Excluded Assets	  	1.2
	Exhibit A	  	2.1
	Exhibit B	  	2.2
	Exhibit C	  	1.5
		
	FFE, Inventory, and Supplies	  	1.1(a)
	Financial Statements	  	Exhibit B, Section B.7(a)
	Future Service Contracts	  	1.1(k)
		
	Globe	  	Introduction
	Goodwill	  	1.1(m)
	Governmental Programs	  	Exhibit B, Section B.27
	Governmental Reimbursement Laws	  	Exhibit B, Section B.27
		
	Incorporated Documents	  	5.8
	Indemnifiable Claims	  	4.2(b)
	Indemnified Party	  	4.4(a)
	Indemnifying Party	  	4.4(a)
	Intangibles	  	1.1(f)
	Interim Statements	  	Exhibit B, Section B.7(b)
	Investment Questionnaire	  	3.2(d)(x)
		
	KeyBank	  	Exhibit A, Section A.2(b)
	KeyBank Credit Facility	  	Exhibit A, Section A.2(b)
	Kids Dental	  	Introduction

  

 -ii- 

			
	Majority-in-Interest	  	Exhibit C, Section 4
	Material Adverse Effect	  	Exhibit B, Section B.9(a)
	Material Agreement	  	Exhibit B, Section B.20
	Ms. Erickson	  	Introduction
		
	New Employees	  	3.4(b)(i)
	New Employment Agreement	  	3.2(d)(v)
	New Office Lease	  	3.2(d)(ix)
	Notes Receivable	  	1.1(b)
		
	Operating Agreement	  	3.2(d)(iv)
	Owners	  	Introduction
		
	Parties	  	Introduction
	Patient Records	  	1.1(i)
	Pension Plans	  	Exhibit B, Section B.19(a)
	Permits	  	Exhibit B, Section B.11
	Plans	  	3.4(b)(iii)
	Pre-Closing Period	  	Exhibit C, Section 1(a)
	Prepaids	  	1.1(c)
	Proprietary Rights	  	Exhibit B, Section B.12
		
	Related Party Payables	  	Exhibit B, Section B.21
	Related Party Receivables	  	Exhibit B, Section B.21
	Required Cash	  	1.1(g)
	Response Period	  	4.4(a)
	Restricted Period	  	3.2(b)
	Restricted Territory	  	3.2(b)
		
	Sellers	  	Introduction
	Settlement Statement	  	1.4(a)
	Software	  	Exhibit B, Section B.12
		
	Third-Party Claim	  	4.4(a)
	Third-Party Payor Agreements	  	1.1(j)
	Tooth Doctor	  	Introduction
	Tooth PC	  	Introduction
	Top 10 Third-Party Payors	  	Exhibit B, Section B.20
	To the best of Care for Kids’ knowledge	  	2.1
	To the best of each Seller or Owner’s knowledge	  	2.2

  

 -iii- 

 CONTRIBUTION AGREEMENT 
 This Contribution Agreement (this “Agreement”) is made October 25, 2006, among Care for Kids – USA, LLC, a Delaware
limited liability company (“Care for Kids”), Central’s Tooth Doctor for Kids, LLC, an Arizona limited liability company (“Central”), A Tooth Doctor for Kids, LLC, a Nevada limited liability
company (“Doctor for Kids”), East Valley’s Tooth Doctor, L.L.C., an Arizona limited liability company (“East Valley”), Arizona’s Tooth Doctor for Kids – Globe, LLC, an Arizona limited
liability company (“Globe”), Arizona’s Kids Dental Care, LLC, an Arizona limited liability company (“Kids Dental”) (Central, Doctor for Kids, East Valley, Globe, and Kids Dental may be referred to
herein collectively as “Sellers”), and Arizona’s Tooth Doctor, PC, an Arizona professional corporation (“Tooth PC”), Jeffrey T. Erickson, D.D.S. (“Dr. Erickson”),
Christopher Barney, D.D.S. (“Dr. Barney”), Emerico Gomez, Jr. (“Dr. Gomez”), Paul Brenchley, D.D.S. (“Dr. Brenchley”), Christe D. Erickson (“Ms.
Erickson”), Brenchley Dental Contracting, PLC, an Arizona professional corporation controlled by Dr. Brenchley (“Brenchley PLC”), Erickson Family Trust dated July 20, 2000, with Christine E. Erickson
and Jeffrey T. Erickson as Trustees (“Erickson Living Trust”), Erickson Investment Limited Partnership, a Nevada limited partnership controlled by Dr. Erickson (“EILP”), and the Erickson
Children’s Educational Trust dated December 29, 1999, with Christine E. Erickson and Jeffrey T. Erickson as Trustees (“Erickson Children’s Trust”) (Tooth PC, Dr. Erickson, Dr. Barney, Dr. Gomez,
Dr. Brenchley, Ms. Erickson, Brenchley PLC, Erickson Living Trust, EILP, and Erickson Children’s Trust may be referred to herein collectively as “Owners”). Sellers and Owners may sometimes be referred to herein
collectively as “Tooth Doctor.” Care for Kids and Tooth Doctor may be referred to herein collectively as the “Parties.” Care for Kids shall perform or cause to be performed any obligation in this
Agreement that is to be performed by Care for Kids of Arizona, LLC, a Delaware limited liability company and wholly-owned subsidiary of Care for Kids (“Arizona Subsidiary”). 
 Background Information 
 Tooth Doctor
operates a dental practice specializing in the treatment of children, including primarily children covered by Arizona’s Medicaid program called Arizona Health Care Cost Containment System (“AHCCCS”), with five locations
in the Phoenix, Arizona metropolitan area and one location in Globe, Arizona (the “Business”). Sellers desire to contribute substantially all of their assets used in the Business to Care for Kids, subject to certain
liabilities, and Care for Kids desires to assume those liabilities and to admit Owners as members of Care for Kids, all as more fully described below (collectively, the “Contribution”). The Parties are entering into this
Agreement to provide for the Contribution and certain related transactions and agreements. 
  

 1 

 Statement of Agreement 
 The Parties acknowledge the accuracy of the foregoing Background Information and hereby agree as follows: 
 ARTICLE I 
 CONTRIBUTION OF
PROPERTY 
 1.1. Contribution of Property. On the terms and subject to the conditions described in this Agreement, at the
Closing (as defined in Section 1.5, below), Sellers shall contribute, assign, transfer, convey, and deliver to Care for Kids all of the assets (other than the Excluded Assets, as defined in Section 1.2, below) used in connection with the
operation of the Business (the “Contributed Property”), including without limitation the following: 
 (a) All
furniture, fixtures, equipment, inventory, and office and dental supplies of Sellers (collectively, the “FFE, Inventory, and Supplies”), including without limitation those which are identified on Schedule 1.1(a);

 (b) All notes receivable of Sellers (collectively, the “Notes Receivable”), including without limitation those
which are identified on Schedule 1.1(b); 
 (c) All prepaid expenses of Sellers (collectively, the
“Prepaids”), including without limitation those which are identified on Schedule 1.1(c); 
 (d) All of
Seller’s rights in, to, and under all contracts which are identified on Schedule 1.1(d) (collectively, the “Assumed Contracts”), including without limitation, with respect to any Assumed Contract that is a lease
for a dental facility used by Sellers, any security deposit or letter of credit given under such lease; 
 (e) All Permits (as defined in
Section B.11, below) which are necessary in order for Care for Kids to operate the Business after the Closing (the “Assignable Permits”), including without limitation those which are identified on Schedule 1.1(e);

 (f) All Proprietary Rights and Software (each as defined in Section B.12, below) and all goodwill and other intangibles of Sellers
(collectively, the “Intangibles”), including without limitation the Proprietary Rights, Software, and Intangibles which are identified on Schedule 1.1(f); 
 (g) Cash and cash equivalents of Sellers as of the Effective Time, in the following amounts (the “Required Cash”): 
 (i) If the Closing (as defined in Section 1.5, below) occurs on or after the first day of a month but prior to the sixth day of a month, the
Required Cash shall equal $50,000 times the number of business days between the first day of the month and the Closing; 
 (ii) If the
Closing occurs on or after the sixth day of the month but prior to the 22nd day of the month, there shall be no
Required Cash, but Care for Kids shall reimburse Sellers for regular accrued payroll obligations incurred on behalf of Care for Kids by paying the difference between the actual regular payroll paid by Sellers and $50,000 times the number of business
days between the sixth day of such month and the Closing, all as detailed on the Settlement Statement (as defined in Section 1.4(a)); and 
  

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 (iii) If the Closing occurs on or after the 22nd day of the month but prior to the first day of the next calendar month, there shall be no Required Cash. 
 (h) All accounts receivable of Sellers as of the Effective Time (the “Accounts Receivable”), including without limitation those
which are identified on Schedule 1.1(h); 
 (i) All patient records of Sellers (the “Patient Records”);

 (j) All agreements between any Seller and any dentist employed or otherwise retained by any Seller (including without limitation the
Owners) and any third party providing for payment for dental services rendered by any Seller or such dentist, as applicable (the “Third-Party Payor Agreements”), including without limitation those which are identified on
Schedule 1.1(j); 
 (k) All contracts with patients of any Seller or any dentist employed or otherwise retained by any Seller for the
future provision of dental or orthodontic services by Sellers or such dentist, as applicable (the “Future Services Contracts”), including without limitation those which are identified on Schedule 1.1(k); 
 (l) All employment and independent contractor agreements with dentists and dental specialists employed or otherwise retained by any Seller (the
“Dentist Agreements”), including without limitation those which are identified on Schedule 1.1(l); and 
  

	(m)	Sellers’ goodwill with respect to the Business as a going concern (collectively, the “Goodwill”). 

 1.2. Excluded Assets. Notwithstanding any other provision of this Agreement to the contrary, the following items (the “Excluded
Assets”) shall be excluded from the Contribution: 
 (a) All Permits other than the Assignable Permits; 
 (b) All corporate or limited liability company books and records of Sellers, including without limitation corporate or limited liability company minute
books, stock ledgers, books of account, general ledgers, financial statements, and tax returns and records; 
 (c) All cash and cash
equivalents of Sellers in excess of the Required Cash; 
 (d) All bank accounts of Sellers as of the Effective Time; 
 (e) All leasehold improvements; and 
 (f)
The assets identified on Schedule 1.2, if any. 
 1.3. Liabilities Assumed. Care for Kids shall assume the following
liabilities of Sellers (collectively, the “Assumed Liabilities”): 
 (a) The liabilities of Sellers first arising at
or after the Effective Time (as defined in Section 1.5, below) under the Assumed Contracts; 
  

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 (b) Current trade payables that are outstanding not more than 45 days incurred in the ordinary course of
business consistent with past practices, including those payables set forth on Schedule 1.3(b); and 
 (c) Those other liabilities of
the Business, if any, specifically identified in the attached Schedule 1.3(c). 
 Except as specifically provided in the first
paragraph of this Section 1.3, Care for Kids shall not assume, or in any way be liable or responsible for, any claims, liabilities, obligations, or debts of Sellers, including without limitation any liabilities relating to: (i) federal,
state or local tax liabilities or obligations of any Seller in respect of periods prior to and through the date of the Closing or resulting from the consummation of the transactions contemplated herein including, without limitation, any income tax,
any franchise tax, any tax recapture, any sales and/or use tax, any state and local recording fees and taxes which may arise upon the consummation of the transactions contemplated herein, and any FICA, FUTA, workers’ compensation, and any and
all other taxes or amounts due and payable as a result of the exercise by the employees of any Seller of such employee’s right to vacation, sick leave, and holiday benefits accrued while in the employ of a Seller; (ii) any pension, profit
sharing, or employee benefit plans covering any of the employees of any Seller for any period prior to the Closing; (iii) express or implied warranties; (iv) any acts or omissions of any Seller or any employee, agent, representative,
member, or shareholder of any Seller (including without limitation those related directly or indirectly to any tort claim asserted against any Seller or any employee, agent, or representative of any Seller); (v) claims for breach of contract;
and (vi) other claims of any kind whatsoever, or any other liabilities of any Seller, direct or contingent, including without limitation, any matters disclosed in the schedules referenced in Exhibit B and Sellers shall pay or discharge all such
liabilities as and when due. 
 1.4. Consideration. In consideration of the contribution of the Business to Care for Kids: 

(a) Cash Consideration. At the Closing, Care for Kids shall pay Sellers through direct payments to the Owners (which shall be deemed payments to
Sellers followed by an immediate distribution to Owners) cash in the amount of $18,700,000, by wire transfer (the “Cash Consideration”), allocated and payable to Sellers and Owners as set forth in the Settlement Statement
attached to this Agreement as Exhibit 1.4(a) (the “Settlement Statement”), it being understood and agreed that, except as specifically contemplated by §1.3, above, as of the Closing, all debt of the Business, including
without limitation equipment leases, outstanding credit card balances and cash advances carried on the Business balance sheet, shall have been paid off, and that Care for Kids shall have the right to pay such pay-off amounts directly to the
creditors of the Business out of the Cash Consideration, and reduce the amount of Cash Consideration otherwise payable to Sellers (all as further detailed on the Settlement Statement); 
 (b) Assumption of Liabilities. At the Closing, Care for Kids shall assume the Assumed Liabilities by executing and delivering an assumption
agreement in the form previously agreed upon by the Parties (the “Assignment and Assumption Agreement”), as well as each Assignment, Assumption, and Amendment of Lease (as defined in Section 3.2(d)(vii), below) and each
Assignment and Assumption of Lease (as defined in Section 3.2(d)(viii), below); and 
  

 4 

 (c) Issuance of Units. At the Closing, Care for Kids shall issue to Owners (which shall be deemed
issuance to Sellers, followed by an immediate distribution to Owners) 15,000 Units (as defined in the Operating Agreement), representing 15% of the total number of Units issued and outstanding after the issuance of such Units, with such Units
allocated among the Sellers and Owners as follows (all as more fully provided for in the Operating Agreement), and in such names as may be directed by Owners, subject to the approval of Care for Kids, which shall not be unreasonably withheld:

  

								
	  	  	 	  	 	 	 	 Number of Units of
 Care for Kids:

	 Central – 35% of Aggregate Units
	  			 	
	 Owners:
	  	Tooth PC	  	85.0	%	 	4,462.500
		  	Brenchley PLC	  	12.5	%	 	656.250
		  	Ms. Erickson	  	2.5	%	 	131.250
			
	 Doctor for Kids – 30.75% of Aggregate Units
	  			 	
	 Owners:
	  	EILP	  	99.0	%	 	4,566.375
		  	Tooth PC	  	1.0	%	 	46.125
			
	 East Valley – 31.25% of Aggregate Units
	  			 	
	 Owners:
	  	EILP	  	67.0	%	 	3,140.625
		  	Dr. Erickson	  	1.0	%	 	46.875
		  	Dr. Barney	  	20.0	%	 	937.500
		  	Dr. Gomez	  	10.0	%	 	468.750
		  	Ms. Erickson	  	2.0	%	 	93.750
			
	 Kids Dental – 3.00% of Aggregate Units
	  			 	
	 Owners:
	  	EILP	  	88.0	%	 	396.000
		  	Brenchley PLC	  	10.0	%	 	45.000
		  	Ms. Erickson	  	2.0	%	 	9.000

 (d) Earn Out. Not later than March, 30, 2008, Care for Kids will make an additional cash
payment (by wire transfer) by direct payments to Owners (which shall be deemed payments to Sellers followed by an immediate distribution to Owners) in an amount equal to 85% of the result obtained when the amount, if any, by which Arizona
Subsidiary’s 2007 EBITDA (as defined below) exceeds $4,000,000 is multiplied by 4 (the “Earn Out Payment”). The Earn Out Payment shall be allocated among Sellers and Owners in the same proportions as the Cash
Consideration. For purposes of calculating the 2007 EBITDA all revenues related to the Business, regardless of which entity recognizes such revenues for accounting purposes, shall be included. 
 For purposes of this Section 1.4(d), the term “2007 EBITDA” means, earnings, before interest, taxes, depreciation, and
amortization (“EBITDA”), based upon Generally Accepted Accounting Principles, realized from Sellers’ current dental offices used in the operation of the Business, specifically excluding any dental offices that may be
added to Tooth 
  

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 Doctor or Arizona Subsidiary subsequent to the Closing, net of all direct costs associated with administering the
Business, including but not limited to, the costs of the Chief Executive Officer and the Director of Operations of Arizona Subsidiary and related expenses, and any and all inter-company expense allocations for the cost of personnel performing direct
services to or on behalf of Arizona Subsidiary, such as accounting, payroll, and similar services, as well as other allocations directly benefiting Arizona Subsidiary, such as external payroll processing fees and practice management software and
support fees. Notwithstanding the foregoing, such direct costs shall not include any salary or expenses for other officers or senior managers of any American Dental Partners, Inc., a Delaware corporation (“ADPI”) related
entity, including Care for Kids or ADP-CFK, LLC, a Delaware limited liability company and wholly-owned subsidiary of ADPI and parent of Care for Kids (“ADP-CFK”). Notwithstanding the foregoing, to the extent any costs paid by
Care for Kids related to the asphalt for the University Drive property is expensed rather than capitalized, such expensed item shall not be included in the calculation of 2007 EBITDA. If applicable, for purposes of the Earn Out Payment calculation,
the minority interest expense resulting from the Owners’ equity ownership in Care for Kids shall be added back to EBITDA. Owners shall have the right to engage independent auditors, at reasonable times and upon reasonable prior notice to Care
for Kids, to review the books and records of Care for Kids and Arizona Subsidiary in connection with the calculation of the Earn Out; provided that such engagement shall be solely an expense of the Owners. 
 The Cash Consideration and Earn Out Payment shall be allocated among the Contributed Property in accordance with Section 1060 of the Internal
Revenue Code of 1986, as amended (the “Code”), and the applicable regulations thereunder. The Parties have agreed upon a preliminary allocation prior to the execution of this Agreement, which allocation is reflected in the
Allocation of Consideration attached hereto as Exhibit 1.4. Such allocation shall be finalized after the Closing by Care for Kids and Sellers, each of which must agree to the final allocation. The allocation of the Cash Consideration and Earn
Out Payment determined under this Section 1.4 shall be binding on the Parties, shall be used for all purposes on their respective federal, state, and local income tax returns, as applicable, and shall be supported by them in any audits or other
disputes or litigation involving any such returns. 
 The Parties shall timely prepare and file all required tax reports and returns with
respect to the allocation of the Cash Consideration and Earn Out Payment under this Section 1.4, such as Internal Revenue Service Form 8594 or any equivalent statement, and shall furnish each other with a copy of any such form or statement no
later than 10 days prior to the required filing date. Each such form(s) will be prepared consistent with the allocation of consideration attached as Exhibit 1.4, as it is finalized by the agreement of Care for Kids and each Seller. Sellers shall
pay, and Sellers and Owners, jointly and severally, shall indemnify and hold Care for Kids harmless from and against, any and all taxes, assessments, and other charges that may be due and payable in connection with, or which relate in any way to,
the transfer of the Contributed Property by Sellers to Care for Kids, including without limitation as a result of the payment of the Cash Consideration and the Earn Out Payment. 
 It is the express intention of the parties that the transactions described in this Agreement with respect to the contribution of the Contributed Property
by Sellers to Care for Kids in exchange for Units be treated as provided in Section 721 of the Code. The parties agree to treat the transaction contemplated by this Agreement for federal income tax purposes, in part as a 
  

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 contribution transaction pursuant to Section 721 of the Code, and in part as a sale of assets and to report the
transaction in such a manner on their respective federal income tax returns. In applying Section 704(c) of the Code to the contribution made by Sellers pursuant to this Agreement, Care for Kids shall use the “traditional method with
curative allocations” (within the meaning of Treasury Regulation Section 1.704-3(b)). No party has relied on any other party for any tax advice related to the transactions contemplated by this Agreement. 
 1.5. Closing. The closing of the Contribution and the other transactions contemplated by this Agreement (the “Closing”)
shall be held at the offices of Joseph M. Udall, 18 East University Drive, Suite 201, Mesa, Arizona 85201, on such date as may be reasonably designated by Care for Kids (the “Closing Date”); provided that the
Closing shall be held not later than 10 business days after satisfaction or waiver of all conditions to the Closing set forth in Sections 2 and 3 of Exhibit C attached to this Agreement (“Exhibit C”). The Closing shall be
effective as of 12:01 a.m., Phoenix, Arizona time, on the Closing Date (the “Effective Time”), unless otherwise agreed in writing by the Parties. This Agreement may be terminated by the Parties in accordance with
Section 4 of Exhibit C attached to this Agreement. 
 1.6. Conveyance Documents. At the Closing, in consideration of Care for
Kids’ payment of the Cash Consideration, issuance of the Units, and assumption of the Assumed Liabilities, Sellers shall convey, assign, and transfer the Assets to Care for Kids through the execution and delivery of the following documents:

 (a) A bill of sale for the Required Cash, FFE, Inventory, and Supplies, in the form previously agreed upon by the Parties; 
 (b) An assignment of the Notes Receivable, Accounts Receivable, Prepaids, Assumed Contracts, Future Services Contracts, Third-Party Payor Agreements,
Dentist Agreements, Assignable Permits, Proprietary Rights, Software, Intangibles, Patient Records, and Goodwill, in the form previously agreed upon by the Parties; and 
 (c) Such other assignment or conveyance documents as may be reasonably requested by Care for Kids. 
 Without
limiting any of the foregoing provisions of this Agreement, if any Owner has any interest in any name, permit, agreement, trademark, service mark, or other Contributed Property to be transferred to Care for Kids, including without limitation any
Owner’s interest in the names and federal and state trademarks of “Tooth Doctor,” “A Tooth Doctor for Kids,” “A Tooth Doctor for Kids-East,” “A Tooth Doctor for Kids-Central,” “Arizona’s Tooth
Doctor for Kids,” “Arizona’ s Mobile Tooth Doctor,” “The Traveling Mobile Tooth Doctor for Kids,” and “East Valley Tooth Doctor for Kids,” and all related marks and logos, such Owner also shall assign its
entire interest in such Contributed Property to Care for Kids, at the Closing, and shall deliver any and all supporting documentation with respect to federal and state trademarks and service marks. 
 If consents or approvals of any other parties are required for any sales, conveyances, assignments, or transfers contemplated by this Agreement, then the
Sellers shall have obtained those consents or approvals prior to the Closing. All costs and expenses related to any such 
  

 7 

 sales, conveyances, assignments, consents or approvals, and all transfer taxes or other similar taxes, assessments, or
charges related to the contribution of the Contributed Property to Care for Kids, shall be paid by the Sellers. 
 1.7. Possession.
Care for Kids shall be entitled to exclusive possession of the Contributed Property as of the Closing. 
 ARTICLE II 
 REPRESENTATIONS AND WARRANTIES OF THE PARTIES 
 2.1. Representations and Warranties of Care for Kids. In order to induce Tooth Doctor to enter into this Agreement, Care for Kids hereby represents and warrants to Tooth Doctor that the statements contained in
Exhibit A attached hereto (“Exhibit A”) are true, correct, and complete, and Care for Kids acknowledges that each representation and warranty made under this Section 2.1 is material to Tooth Doctor and that Tooth Doctor
is entering into and performing this Agreement in reliance upon each such representation and warranty. Whenever used in any representation or warranty set forth in Exhibit A, the phrases “to the best of Care for Kids’ knowledge,”
“Care for Kids does not know,” “Care for Kids knows,” and words of similar import signify that no information has come to the attention of the President of Care for Kids, or upon reasonable inquiry would have come to the
attention of the President of Care for Kids, which gives him, or upon such inquiry would have given him, actual knowledge contrary to such representation or warranty. 
 2.2. Representations and Warranties of Sellers and Owners. In order to induce Care for Kids to enter into this Agreement, Sellers and Dr. Erickson hereby jointly and severally represent and warrant to Care
for Kids that the statements contained in Exhibit B attached hereto (“Exhibit B”) are true, correct, and complete. Each Owner hereby represents to Care for Kids that the statements contained in Exhibit B are true,
correct, and complete with respect to the Seller and the business, financial and other matters related to such Seller, in which Owner has a direct or indirect ownership interest. Sellers and Owners acknowledge that each representation and warranty
made under this Section 2.2 is material to Care for Kids and that Care for Kids is entering into and performing this Agreement in reliance upon each such representation and warranty. Whenever used in any representation or warranty set forth in
Exhibit B, the phrases “to the best of each Seller or Owner’s knowledge,” “Seller or Owner does not know,” “Seller and Owner knows,” and words of similar import signify that no information has come to the attention
of any Seller or Owner, or upon reasonable inquiry would have come to the attention of any Seller or Owner, which gives such Seller or Owner, or upon such inquiry would have given such Seller or Owner, actual knowledge contrary to such
representation or warranty covenants of the parties. 
 ARTICLE III 
 COVENANTS OF THE PARTIES 
 3.1. Mutual Covenants. 
 (a) General. Each Party shall use all reasonable efforts to take all actions and do all things necessary, proper, or advisable to consummate the
Contribution and the other 
  

 8 

 transactions contemplated by this Agreement, including without limitation using all reasonable efforts to cause the
obligations set forth in this Agreement for which such Party is responsible to be satisfied as soon as reasonably practicable and to prepare, execute, acknowledge or verify, deliver, and file such additional documents, and take or cause to be taken
such additional actions as any other Party may reasonably request. 
 (b) Governmental Matters. Each Party shall use all reasonable
efforts to take any action that may be necessary, proper, or advisable in connection with any notices to, filings with, and authorizations, consents, and approvals of, any court, administrative agency or commission, or other governmental authority
or instrumentality, that it may be required to give, make, or obtain. 
 3.2. Covenants of Tooth Doctor. Sellers and Owners hereby
jointly and severally agree as follows: 
 (a) Disclosures. After the date of this Agreement, no Seller or Owner shall:
(i) disclose to any person, association, firm, corporation or other entity (other than Care for Kids and its representatives, attorneys, accountants, and agents or those designated in writing by Care for Kids) in any manner, directly or
indirectly, any proprietary information of the Business, whether of a technical or commercial nature, or (ii) use, or permit or assist, by acquiescence or otherwise, any person, association, firm, corporation or other entity (other than Care
for Kids and its representatives, attorneys, accountants, and agents or those designated in writing by Care for Kids) to use, in any manner, directly or indirectly, any such information, excepting only (A) use of such information as is at the
time generally known to the public and which did not become so known through any breach of any provision of this Section 3.2(a) by any Seller or Owner, and (B) disclosures of information to employees, representatives, attorneys,
accountants, and agents of any Seller or Owner who need to know such information and use of such information by employees, representatives, attorneys, accountants, and agents of any Seller or Owner who need to use such information. 
 (b) Non-Competition. During the Restricted Period (as defined below), no Seller or Owner shall, directly or indirectly (whether individually or as
a shareholder (except as a shareholder owning 1% or less of the outstanding capital stock of a publicly traded corporation), partner, member, director, officer, employee, consultant, creditor, or agent of any person, association, or other entity),
other than on behalf of an Affiliated Company (as defined below): 
 (i) Engage in the practice of dentistry or otherwise perform
professional dental services or related services anywhere in the Dentistry Restricted Territory (as defined below); 
 (ii) Manage, operate,
control, lend funds to, lend his or its name to, maintain any interest in, or otherwise enter into, engage in, or promote or assist (financially or otherwise), directly or indirectly, any entity, business, or enterprise which (A) provides,
distributes, or promotes any type of management or administrative services or products in the dental field to third parties in competition with any Affiliated Company in the Restricted Territory, or (B) offers any type of dental service or
product to third parties substantially similar to those offered by any Affiliated Company to any practice providing dental, orthodontic, periodontic, prosthodontic, endodontic, or other professional dental services, pediatric dentistry or oral
surgery anywhere in the Restricted Territory (as defined below); 
  

 9 

 (iii) Induce or encourage any employee, officer, director, agent, supplier, or independent contractor of
any Affiliated Company to terminate its relationship with any such Affiliated Company, or otherwise interfere or attempt to interfere in any way with any Affiliated Company’s relationships with its employees, officers, directors, agents,
suppliers, independent contractors, or others; or 
 (iv) Employ or engage any person who, at any time within the one-year period
immediately preceding such employment or engagement, was an employee, officer, director, manager, or agent of any Affiliated Company. 
 For
purposes of this Section 3.2(b), (A) “Affiliated Company” shall mean ADPI and all Affiliates (as defined below in this Section 3.2(b)) of ADPI; (B) an “Affiliate” of a person shall
mean any other person that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the first person; (C) “Restricted Period” shall mean, with respect to
each Seller or Owner, the period beginning on the Closing Date and ending on the later of (1) the fifth anniversary of the Closing Date, or (2) the second anniversary of the date such Seller or Owner (x) no longer has any direct or
indirect interest in Care of Kids (or any successor entity) or any Affiliated Company, and (y) is no longer employed or retained by Care for Kids (or any successor entity) or any Affiliated Company and is no longer receiving any compensation or
other remuneration from Care for Kids (or any successor entity) or any Affiliated Company; (D) “Restricted Territory” shall mean (1) for all of the Owners a radius of 25 miles from any facility or operation leased,
owned, managed, or operated by Care for Kids, and (2) for Dr. Erickson only shall also include Globe, Arizona, the Phoenix, Arizona metropolitan area, and any city, town, county, metropolitan statistical area, or other geographic territory
with respect to which Dr. Erickson has been or is hereafter involved in the planning with management of any Affiliated Company regarding the expansion of the Business, the establishment or expansion of a dental practice similar to the Business,
including without limitation the expansion of the business of any dental practice to which any Affiliated Company now or hereafter provides services, or the provision of services to any dental practice which is similar to the Business; and
(E) “Dentistry Restricted Territory” shall mean (1) for all of the Owners other than Dr. Erickson, a radius of 10 miles from any Arizona Subsidiary offices or facilities at which such Owner has been regularly
scheduled to see patients or has seen patients on a regular basis at any time during the two-year period immediately prior to the termination of such Owner’s employment with Arizona Subsidiary, and (2) for Dr. Erickson a radius of ten
miles from any Arizona Subsidiary dental office or facility. Nothing in this Section 3.2 shall prohibit any of the Owners from teaching in a dental school or lecturing or providing dental education seminars, provided such Owner is doing so in
compliance with any and all terms of any employment agreement with ADP-CFK or Arizona Subsidiary, as applicable, and in accordance with any policies and procedures adopted by either ADP-CFK or Arizona Subsidiary. Subject to any other restrictions
binding on any of the Owners, nothing in Section 3.2(b)(ii) shall prohibit any Owner from practicing dentistry as an employee or independent contractor of another company, or managing his own dental practice if such Owner is operating as a sole
practitioner. 
  

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 (c) Injunctive Relief. Sellers and Owners acknowledge and agree that Care for Kids’ remedies
at law for any violation or attempted violation of any obligation of any Seller or Owner under this Section 3.2 would be inadequate and that, in the event of any such violation or attempted violation, Care for Kids shall be entitled to a
temporary restraining order, temporary and permanent injunctions, and other equitable relief, without the necessity of posting any bond or proving any actual damage, in addition to all other rights and remedies which may be available to Care for
Kids from time to time. 
 (d) Closing Deliveries of Tooth Doctor. At the Closing, Sellers and Owners shall deliver or cause to be
delivered to Care for Kids (in addition to the deliveries to be made by Sellers under Article I, above): 
 (i) Certificates of Good
Standing. Certificates of good standing (or their equivalent) for Sellers, each issued not more than 15 days prior to the Closing Date by the secretary of state (or equivalent officer) of the respective states of organization of Sellers and any
other state (or, if applicable, foreign jurisdiction) in which any Seller is qualified to do business. 
 (ii) Secretary’s
Certificate. A certificate signed by the Secretary (or equivalent officer or representative) of each Seller, in the form previously agreed upon by Care for Kids and the Tooth Doctor. 
 (iii) Releases. Evidence reasonably satisfactory to Care for Kids that all mortgages, pledges, liens, security interests, encumbrances, and
restrictions of any nature whatsoever encumbering the Contributed Property have been terminated or otherwise released prior to the Closing or are being terminated or otherwise released concurrently with the Closing. 
 (iv) Operating Agreement. The Care for Kids Limited Liability Company Agreement executed by Owners in the form previously agreed upon by Care for
Kids and Owners (the “Operating Agreement”). 
 (v) Employment Agreements. Employment and non-competition
agreements between Arizona Subsidiary and Drs. Barney, Gomez, and Brenchley, each in the form previously agreed upon by Arizona Subsidiary and the employee under such agreement, executed by the employee under each such agreement, and an employment
and non-competition agreement between ADP-CFK, LLC, a Delaware limited liability company and wholly-owned subsidiary of ADPI and parent of Care for Kids (“ADP-CFK”) and Dr. Erickson in the form previously agreed upon by
ADP-CFK and Dr. Erickson, executed by Dr. Erickson (each such agreement, a “New Employment Agreement”). 
 (vi) Closing Balance Sheet. The Estimated Closing Balance Sheet (as defined in Exhibit B, Section B.7(c), below), along with an accounts receivable aging report and an accounts payable aging report. 
 (vii) Lease Matters – Amendments. Separate Assignment, Assumption, and Amendment Agreements, as the case may be, each relating to
Sellers’ lease for certain of Sellers’ offices and each in the form previously agreed upon by Arizona Subsidiary, the Seller which is the lessee under the lease, and the landlord under such lease, and each executed by the appropriate
Seller and such landlord (each, an “Assignment, Assumption, and Amendment of Lease”). 
  

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 (viii) Lease Matters – Assumptions. Separate Assignment and Assumption Agreements, as the
case may be, each relating to Sellers’ lease for certain of Sellers’ offices and each in the form previously agreed upon by Arizona Subsidiary, the Seller which is the lessee under the lease, and the landlord under such lease, and each
executed by the appropriate Seller and such landlord (each, an “Assignment and Assumption of Lease”). 
 (ix)
Lease Matters – New Leases. Separate Office Leases, as the case may be, for certain of Sellers’ offices that are owned by affiliates of Sellers and each in the form previously agreed upon by Arizona Subsidiary and the landlord of
the office, and each executed by such landlord (each, a “New Office Lease”). 
 (x) Investment
Questionnaires. Each Owner shall deliver a completed and executed investment questionnaire, in the form provided by Care for Kids (each, an “Investment Questionnaire”). 
 (xi) Schedules. All schedules to this Agreement, updated to the date of Closing. 
 (e) Name Change. As soon as reasonably practicable following the Closing and in any event not later than 10 days after the Closing Date, each
Seller shall cause its articles of organization, certificate of formation, or similar organizational document to be amended so that such Seller’s name no longer contains the phrase “Tooth Doctor,” the phrase “Kids Dental
Care,” the phrase “for Kids,” or any variation or combination of any such phrase or phrases. 
 3.3. Closing Deliveries of
Care for Kids. Concurrently with the execution of this Agreement, Care for Kids shall deliver or cause to be delivered to the Sellers (in addition to the deliveries to be made by Care for Kids under Article I, above): 
 (a) Certificates of Good Standing. A certificate of good standing or full force and effect for Care for Kids issued not more than 15 days prior to
the Closing Date by the secretary of state (or equivalent officer) of Delaware. 
 (b) Secretary’s Certificate. A certificate
signed by the secretary of Care for Kids, in the form previously agreed upon by Care for Kids and Sellers. 
 (c) Operating Agreement.
The Operating Agreement executed by ADP-CFK. 
 (d) New Employment Agreements. The New Employment Agreements executed by Arizona
Subsidiary or ADP-CFK, as applicable. 
 (e) Lease Matters. Each Assignment, Assumption, and Amendment of Lease, each Assignment and
Assumption of Lease, and each New Office Lease, all executed by Arizona Subsidiary. 
  

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 3.4. Employment and Employee Benefits Matters. 
 (a) Pension Plan. Prior to Closing, Sellers shall have taken all steps necessary to commence the termination of Tooth PC’s Defined Benefit
Pension Plan and any other plan that, if in existence as of the Closing, would constitute an Employee Plan (as defined in Exhibit B, Section B.19) that is a retirement plan qualified under Section 401(a) of the Code, such steps to include,
without limitation, execution of board, manager, or member resolutions, as applicable, authorizing such termination. Such plan termination(s) shall be effective as soon as reasonably possible after the Effective Time. 
 (b) Retention of Employees and Benefits. 
 (i) As of the Closing Date, Arizona Subsidiary shall offer employment to, and Sellers shall use their best efforts to assist Arizona Subsidiary in employing as new employees of Arizona Subsidiary, those of Sellers’ employees who are
listed on Schedule 3.4(b)(i) attached hereto and incorporated herein by reference (the “New Employees”). The terms and conditions of such employment by Arizona Subsidiary shall be in accordance with the employment
practices of the Affiliated Companies for their similarly situated employees. Nothing contained herein shall alter, nor shall it be construed to alter in any way, the at-will employment relationship between Arizona Subsidiary and any New Employee.
Furthermore, nothing contained in this Agreement shall create, nor shall it be construed to create in any way, rights of any individual not a party to this Agreement. Tooth Doctor shall terminate its employment of all of the New Employees, effective
as of the Effective Time. 
 (ii) Arizona Subsidiary shall be responsible for any and all liabilities for severance costs and payments to
which the New Employees are entitled under Arizona Subsidiary’s benefits programs or by law (including any WARN Act liability) arising out of Arizona Subsidiary’s layoff or termination of the New Employees’ employment after the
Closing Date. Sellers shall be responsible for any and all liabilities for severance costs and payments to which the New Employees are entitled under Sellers’ benefit programs or by law arising out of Sellers’ layoff or termination of the
New Employees’ employment on or prior to the Closing Date. 
 (iii) Except as set forth herein, Sellers shall retain all of the
liabilities and obligations arising under any employee benefit plan, policy, agreement or arrangement maintained, sponsored, or contributed to by Sellers or any entity treated as a single employer with Sellers pursuant to Section 414(b), (c),
(m) or (o) of the Code (collectively, “Plans”), including without limitation any obligations with respect to any employees or former employees of Sellers, or to any of such persons’ spouses, children, other
dependents or beneficiaries. Care for Kids shall not assume any of the Sellers’ Plans or any liabilities related thereto. 
 (iv)
Sellers shall be responsible for and shall pay any claims or premiums relating to (A) disability, medical, and dental benefits relating to events occurring on or prior to the Closing Date, or, with respect to premium payments, those which are
due on or prior to the Closing Date; and (B) workers’ compensation benefits when the same become due and payable, whether prior to or after the Closing Date. Sellers shall be solely responsible for any retiree medical liabilities and
related costs of medical and life insurance for persons who 
  

 13 

 shall have retired from any Seller on or prior to the Closing Date. Sellers shall be responsible for employee benefit
claims of employees (or their eligible dependents) with respect to Claim Events, hereinafter defined, occurring on or prior to the Closing Date. A “Claim Event” shall be defined as the illness or injury giving rise to the
reimbursable event. 
 (v) Effective on the Closing Date, Arizona Subsidiary agrees to provide all New Employees who accept employment with
Arizona Subsidiary with group health plan coverage similar to such coverage that Arizona Subsidiary offers to other similarly situated employees of Arizona Subsidiary, in accordance with the terms and conditions of any group health plan of Arizona
Subsidiary (which, in the discretion of Care for Kids, may include the continuation of coverage under Sellers’ plan (if assumed by the Care for Kids) and may be amended or discontinued at any time). Such group health plan (if any) shall
recognize the New Employees’ service with Sellers solely for the purposes of determining whether the New Employee has satisfied all applicable waiting periods under Arizona Subsidiary’s group health plan. Any amount paid by the New
Employees or their dependents for the current plan year for medical expenses that are treated as a deductible or co-insurance payment under Tooth Doctor’s health insurance plan shall reduce the amount of any deductible or co-insurance payment
required to be paid for a similar period under Arizona Subsidiary’s health plan. To the extent Arizona Subsidiary maintains a group health plan for New Employees as of the Closing Date, such plan shall provide health care continuation coverage
(pursuant to Section 4980B of the Code and Section 601 et seq. of ERISA (“COBRA”)) to any New Employee who is a “qualified beneficiary” (as such term is defined in Section 4980B(g)(1) of the Code) and
who experienced a “qualifying event” (as such term is defined in Section 4980B(f)(3) on, prior to, or after the Closing Date. Such plan shall also provide health care continuation coverage pursuant to COBRA to any other employees of
Tooth Doctor who are entitled to COBRA continuation coverage as of the Closing Date, in accordance with the terms and conditions of such plan. 
 (vi) As soon as reasonably practicable following the Closing Date, New Employees shall be eligible to participate in any 401(k) plan maintained or established by Arizona Subsidiary, in accordance with the terms and conditions of such plan.
Nothing contained in this Section 3.4(b) shall require Arizona Subsidiary to continue to maintain or offer a 401(k) plan or any other employee benefit plan, program or arrangement of Sellers for any period of time. 
 (vii) All of Arizona Subsidiary’s employee benefit plans, programs and arrangements in which the New Employees become eligible to participate shall
credit such New Employees with a period of service beginning on their original hire date with Sellers for purposes of eligibility and any other purpose required by law. 
 (viii) Arizona Subsidiary shall assume and be responsible for, and shall give full credit for, all vacation benefits of the New Employees accrued but not taken as of the Closing Date. 
 3.5. Additional Terms. Since this Agreement is being executed and delivered in advance of the Closing, the Parties hereby agree to the additional
covenants, documents, and other terms set forth on Exhibit C. 
  

 14 

 ARTICLE IV 
 INDEMNIFICATION 
 4.1. Survival of Representations, Warranties, and Agreements.

 (a) Subject to the limitations set forth in Section 4.3, below, and notwithstanding any investigation conducted at any time by or on
behalf of Care for Kids, all representations, warranties, covenants, and agreements of Sellers and Owners in this Agreement and in any other documents executed or delivered by Sellers or Owners pursuant to this Agreement or in connection with the
transactions contemplated by this Agreement (the “Additional Documents”) shall survive the execution, delivery, and performance of this Agreement and the Additional Documents. 
 (b) As used in this Article, any reference to a representation, warranty, or covenant contained in any section of this Agreement shall include any
schedule relating to such section. 
 4.2. Indemnification. 
 (a) Subject to the limitations set forth in Section 4.3, below, Sellers and Dr. Erickson shall, jointly and severally, indemnify and hold
harmless Care for Kids from and against any and all losses, liabilities, damages, demands, claims, suits, actions, judgments or causes of action, assessments, costs and expenses, including without limitation interest, penalties, attorneys’
fees, any and all expenses incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, and any and all amounts paid in settlement of any claim or litigation (collectively,
“Damages”), asserted against, resulting in, imposed upon, or incurred or suffered by Care for Kids, directly or indirectly, as a result of or arising from any inaccuracy in or breach or nonfulfillment of any of the
representations and warranties, covenants, or agreements made by any Seller or Dr. Erickson in this Agreement or the Additional Documents. Owners shall severally indemnify and hold harmless Care for Kids from and against any and all Damages
asserted against, resulting in, imposed upon, or incurred or suffered by Care for Kids, directly or indirectly, as a result of or arising from any inaccuracy in or breach or nonfulfillment of any of the representations and warranties, covenants, or
agreements made by such Owner in this Agreement or the Additional Documents. 
 (b) For purposes of this Agreement, the term
“Indemnifiable Claims” shall mean the matters with respect to which Care for Kids is entitled to indemnification under Section 4.2(a). 
 (c) For purposes of this Article, all Damages shall be computed net of any insurance coverage which reduces the Damages that would otherwise be sustained, provided that in all cases the timing of the receipt or
realization of insurance proceeds shall be taken into account in determining the amount of reduction of Damages. 
 (d) Care for Kids shall
be deemed to have suffered Damages arising out of or resulting from the matters referred to in Section 4.2(a), above, if the same shall be suffered by any parent, subsidiary, or other Affiliate (as defined in Section 3.2(b), above) of Care
for Kids. 
  

 15 

 4.3. Limitations on Indemnification. Rights to indemnification under Sections 4.2(a) are subject
to the following limitations: 
 (a) The obligation of indemnity with respect to the representations and warranties set forth in Section B.10
of Exhibit B as to unclaimed property under the Revised Arizona Unclaimed Property Act and the absence of unpaid or undisclosed taxes (including any interest, penalties or expenses) of Sellers and Owners shall terminate on the expiration of the
respective periods of limitations applicable to collection of unclaimed property under laws then applicable to such unclaimed property and to assessment and collection of taxes under laws then applicable to such taxes. 
 (b) The obligation of indemnity with respect to the representations and warranties set forth in Section B.19 of Exhibit B shall terminate upon expiration
of the respective statutes of limitation applicable to the items addressed in such section. 
 (c) The obligation of indemnity with respect
to the representations and warranties contained in Sections B.2, B.3, B.5, and B.11 of Exhibit B shall not expire. 
 (d) The obligation of
indemnity with respect to the representations and warranties set forth in Exhibit B other than those addressed in the immediately preceding subsections (a), (b), and (c) shall terminate on the third anniversary of the Closing Date. 

(e) The foregoing provisions of this Section 4.3 notwithstanding, if, prior to the termination of any obligation of indemnity, written notice of
a claimed breach or other occurrence or matter giving rise to a claim of indemnification is given by Care for Kids to any Seller or Owner, or a suit, action, or other proceeding based upon a claimed breach is commenced against any Seller or Owner,
Care for Kids shall not be precluded from pursuing such claimed breach, occurrence, other matter, or suit or action, or from recovering from Sellers and Owners, or any of them (whether through the courts or otherwise), on the claim, suit, action, or
proceeding, by reason of the termination otherwise provided for above. 
 (f) If, following the Closing, Care for Kids determines that the
aggregate of credit balances for any patients, insurance payors, or other entities for services rendered prior to the Closing (collectively, the “Credit Balances”) exceeds the amount represented in Exhibit B.30, then the
Sellers and Dr. Erickson agree, jointly and severally, to personally fund any and all such Credit Balances in excess of the amount represented in Exhibit B.30 or reimburse Arizona Subsidiary for payment of the aggregate Credit Balances
exceeding the amount represented in Exhibit B.30. 
 4.4. Procedure for Indemnification with Respect to Third-Party Claims.

 (a) If Care for Kids (hereinafter being an “Indemnified Party”) desires to seek indemnification under this Article
with respect to an Indemnifiable Claim resulting from the assertion of liability by a third party (a “Third-Party Claim”), it shall give notice to Sellers and Owners (hereinafter each being an “Indemnifying
Party”) within a reasonable period of time of the Indemnified Party’s becoming aware of any such Third-Party Claim, which notice shall set forth a summary of such material information with respect to such Third-Party Claim as is
then reasonably available to the Indemnified Party. If any Third-Party Claim is asserted against an 
  

 16 

 Indemnified Party and the Indemnified Party notifies the Indemnifying Party of such Third-Party Claim, the Indemnifying
Party shall be entitled, if the Indemnifying Party so elects by written notice delivered to the Indemnified Party within a reasonable period of time (not to exceed 10 business days in any event) after receiving the Indemnified Party’s notice
(the “Response Period”), to assume the defense of such Third-Party Claim with counsel reasonably satisfactory to the Indemnified Party. Notwithstanding the foregoing: (i) the Indemnified Party shall not have any
obligation to give any notice of any Third-Party Claim unless the assertion of liability with respect thereto is in writing; (ii) the rights of the Indemnified Party to be indemnified in respect of Indemnifiable Claims resulting from the
assertion of any Third-Party Claim shall not be adversely affected by its failure to give notice pursuant to the foregoing provisions unless, and, if so, only to the extent that, the Indemnifying Party is materially prejudiced by such failure; and
(iii) each Party shall cooperate with any other Party in all ways reasonably requested by such other Party in connection with the defense of any such Third-Party Claims. With respect to any Third-Party Claim that results in a claim for
indemnification under this Article, the Parties shall make available to each other all relevant information in their possession which is material to any such Third-Party Claim. 
 (b) In the event that the Indemnifying Party fails to assume the defense of the Indemnified Party against any Third-Party Claim within the Response
Period, the Indemnified Party shall have the right to defend, compromise or settle such Third-Party Claim on behalf, for the account, and at the risk of the Indemnifying Party. 
 (c) Notwithstanding anything in this Section 4.4 to the contrary: (i) if there is a reasonable probability that a Third-Party Claim may
materially and adversely affect an Indemnified Party or its subsidiaries or other Affiliates (as defined in Section 3.2(b), above), other than as a result of money damages or other money payments, then the Indemnified Party shall have the
right, at the cost and expense of the Indemnifying Party, to defend, compromise, or settle such Third-Party Claim; and (ii) the Indemnifying Party shall not, without the Indemnified Party’s prior written consent, settle or compromise any
Third-Party Claim or consent to entry of any judgment in respect of any Third-Party Claim unless such settlement, compromise, or consent includes as an unconditional term the giving by the claimant or the plaintiff to the Indemnified Party (and its
subsidiaries and other Affiliates (as defined in Section 3.2(b), above)) of a release from all liability in respect of such Third-Party Claim. 
 4.5. Procedure for Indemnification with Respect to Non-Third-Party Claims. In the event that an Indemnified Party asserts the existence of an Indemnifiable Claim giving rise to Damages other than an Indemnifiable Claim resulting from
a Third-Party Claim, it shall give written notice to the Indemnifying Party specifying the nature and amount of the Indemnifiable Claim asserted. If the Indemnifying Party, within twenty (20) days after the receipt of such notice by the
Indemnified Party, has not given written notice to the Indemnified Party announcing its intention to contest such assertion by the Indemnified Party, such assertion shall be deemed accepted and the amount of the Indemnifiable Claim shall be deemed a
valid Indemnifiable Claim. If, however, the Indemnifying Party contests the assertion of an Indemnifiable Claim by giving such written notice to the Indemnified Party within such 20-day period, then the Parties, acting in good faith, shall attempt
to negotiate a resolution of such Indemnifiable Claim during the 20-day period following such notice from the Indemnifying Party, but, if they are unable to do so, then each Party may pursue any rights or remedies available to it. 
  

 17 

 4.6. Right of Setoff. Care for Kids shall have the right to set off any amounts owing to it by any
Seller or Owner under this Agreement or any Additional Document against any amounts owing to such Seller or Owner by Care for Kids. 
 ARTICLE V 
 MISCELLANEOUS 
 5.1. Power of Attorney. Each Seller and each Owner hereby irrevocably appoints Dr. Erickson as the attorney-in-fact and agent (the “Agent”) of such Seller or Owner and grants to the
Agent full power and authority to take any and all actions, and perform and do any and all things, in such Seller’s or Owner’s place and stead, which the Agent may deem necessary or appropriate in connection with this Agreement or the
transactions contemplated by this Agreement, as fully as such Seller or Owner might or could do if personally present and acting, including without limitation executing, acknowledging or verifying, and delivering any amendments, consents,
acknowledgements or other documents relating to this Agreement or the transactions contemplated by this Agreement, receiving and giving notices under this Agreement, and taking any and all other actions which are permitted or required to be taken by
any Seller or Owner under this Agreement. 
 5.2. Notices. All notices and other communications under this Agreement to any Party
shall be in writing and shall be deemed given when delivered personally, transmitted by facsimile (which is confirmed) to that Party at the facsimile number for that Party set forth below, mailed by certified mail (return receipt requested) to that
Party at the address for that Party (or at such other address for such Party as such Party shall have specified in notice to the other Parties), or delivered to Federal Express, UPS, or any similar express delivery service for delivery to that Party
at that address: 
  

	 	(a)	If to Care for Kids: 

 c/o American Dental Partners, Inc.

 201 Edgewater Drive, Suite 285 
 Wakefield, Massachusetts 01880-1249 
 Attention: Gregory A. Serrao, Chairman and Chief Executive Officer 
 Facsimile No.: (781) 224-4216 
 with a
copy to: 
 Baker & Hostetler LLP 
 65 East State Street, Suite 2100 
 Columbus, Ohio 43215 
 Attention: Gary A. Wadman, Esq. 
 Facsimile
No.: (614) 462-2616 
  

 18 

	 	(b)	If to Tooth Doctor: 

 Dr. Jeffrey T. Erickson

 3616 E. Tremaine Court 
 Gilbert, AZ 85234 
 Facsimile No.: (480) 632-7660 
 with a copy to: 
 The Law Firm of Joseph M.
Udall, PLC 
 18 East University, Suite 201 
 Mesa, Arizona 85201 
 Attention: Joseph M. Udall, Esq. 
 Facsimile No.: (480) 898-3435 
 5.3.
Legal Representation; No Tax Advice. Each Seller and Owner acknowledges and agrees that The Law Firm of Joseph M. Udall, PLC has only represented the interests of Dr. Erickson individually in connection with the negotiation and
execution of this Agreement and the transactions contemplated herein. EACH SELLER AND OWNER ACKNOWLEDGES THAT IT/HE/SHE HAS BEEN GIVEN THE OPPORTUNITY TO HAVE ATTORNEYS OF SUCH SELLER OR OWNER’S CHOOSING REVIEW THIS AGREEMENT AND ALL OTHER
AGREEMENTS EXECUTED IN CONNECTION WITH THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. Each Seller, Owner and Dr. Erickson have consulted their own tax advisors and obtained competent tax advice prior to executing this
agreement. 
 5.4. Non-Waiver. No failure by any Party to insist upon strict compliance with any term or provision of this Agreement,
to exercise any option, to enforce any right, or to seek any remedy upon any default of any other Party shall affect, or constitute a waiver of, any other Party’s right to insist upon such strict compliance, exercise that option, enforce that
right, or seek that remedy with respect to that default or any prior, contemporaneous, or subsequent default. No custom or practice of the Parties at variance with any provision of this Agreement shall affect or constitute a waiver of any
Party’s right to demand strict compliance with the provisions of this Agreement. 
 5.5. Genders and Numbers. Where permitted by
the context, each pronoun used in this Agreement includes the same pronoun in other genders and numbers, and each noun used in this Agreement includes the same noun in other numbers. 
 5.6. Headings. The headings of the various articles and sections of this Agreement are not part of the context of this Agreement, are merely
labels to assist in locating such articles and sections, and shall be ignored in construing this Agreement. 
 5.7. Counterparts. This
Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. A Party may execute this Agreement and transmit its signature by
facsimile, which shall be fully binding, and the Party taking such actions shall deliver a manually signed original as soon thereafter as is practicable. 
  

 19 

 5.8. Entire Agreement. This Agreement (including all exhibits, schedules, and other documents
referred to in this Agreement (the “Incorporated Documents”), all of which are hereby incorporated by reference) constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral,
among the Parties with respect to the subject matter of this Agreement. All obligations of any Party under any Incorporated Document shall constitute an obligation of such Party under this Agreement. Any capitalized terms used in any Incorporated
Document which are not otherwise defined therein shall have the respective meanings given such terms in this Agreement. This Agreement may not be amended except by a written instrument signed by or on behalf of all Parties. 
 5.9. No Third Party Beneficiaries. Nothing contained in this Agreement, expressed or implied, is intended or shall be construed to confer upon or
give to any person, firm, corporation, or legal entity, other than the Parties, any rights, remedies, or other benefits under or by reason of this Agreement. 
 5.10. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without regard to principles of conflicts of law. 
 5.11. Successors; Assignment. This Agreement shall be binding upon, inure to the benefit of, and be enforceable by and against the Parties and
their respective heirs, personal representatives, successors, and assigns. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be transferred or assigned by any of the Parties without the prior written
consent of the other Parties. Any assignment in violation of the foregoing shall be null and void. 
 5.12. Remedies. All rights and
remedies of each Party under this Agreement shall be cumulative and in addition to all other rights and remedies which may be available to that Party from time to time, whether under any other agreement, at law, or in equity. 
 5.13. Expenses. Each Party shall bear his, her, or its respective legal, accounting, and other costs and expenses associated with the transactions
contemplated by this Agreement (including without limitation the costs of any brokers and financial advisors). 
 5.14. Severability.
With respect to any provision of this Agreement finally determined by a court of competent jurisdiction to be unenforceable, such court shall have jurisdiction to reform such provision so that it is enforceable to the maximum extent permitted by
applicable law, and the Parties shall abide by such court’s determination. In the event that any provision of this Agreement cannot be reformed, such provision shall be deemed to be severed from this Agreement, but every other provision of this
Agreement shall remain in full force and effect. 
 5.15. Further Assurances. Each Party shall execute, acknowledge or verify, and
deliver any and all documents which may from time to time be reasonably requested by the other Party to carry out the purpose and intent of this Agreement. 
  

 20 

 5.16. Financial Calculations. All financial calculations made pursuant to or in connection with
this Agreement shall be made in accordance with generally accepted accounting principles applied on a consistent basis. 
 [Remainder of
page intentionally left blank.] 
  

 21 

 Each of the undersigned confirms that he, she, or it has read and fully understands this Agreement and the exhibits
attached hereto, including without limitation the representations, warranties, and covenants contained in Exhibits A, B, and C (in conjunction with the schedules referred to therein, as applicable). 
  

									
	CARE FOR KIDS – USA, LLC	 		 	ARIZONA’S TOOTH DOCTOR, P.C.
					
	By:	 	 /s/ Breht T. Feigh
	 		 	By:	 	 /s/ Jeffrey T. Erickson

	Its:	 	Vice President	 		 	Its:	 	President
				
		 		 		 	CENTRAL’S TOOTH DOCTOR FOR KIDS, LLC
					
		 		 		 	By:	 	 /s/ Jeffrey T. Erickson

		 		 		 	Its:	 	Manager
				
		 		 		 	A TOOTH DOCTOR FOR KIDS, LLC
					
		 		 		 	By:	 	 /s/ Jeffrey T. Erickson

		 		 		 	Its:	 	Manager
				
		 		 		 	EAST VALLEY’S TOOTH DOCTOR, LLC
					
		 		 		 	By:	 	 /s/ Jeffrey T. Erickson

		 		 		 	Its:	 	Manager
				
		 		 		 	ARIZONA’S TOOTH DOCTOR FOR KIDS – GLOBE, LLC
					
		 		 		 	By:	 	 /s/ Jeffrey T. Erickson

		 		 		 	Its:	 	Manager

  

 22 

									
		 		 		 	ARIZONA’S KIDS DENTAL CARE, LLC
			
		 	By:	 	 /s/ Jeffrey T. Erickson

		 	Its:	 	Manager
	 ERICKSON FAMILY TRUST, dated
 July 20,
2000
	 		 		 	
		 		 		 		 	 /s/ Jeffrey T. Erickson

	By:	 	 /s/ Christine E. Erickson
	 		 		 	JEFFREY T. ERICKSON, D.D.S.
		 	Christine E. Erickson, Trustee	 		 		 	
					
	By:	 	 /s/ Jeffrey T. Erickson
	 		 		 	
		 	Jeffrey T. Erickson, Trustee	 		 		 	
				
	 ERICKSON CHILDREN’S
 EDUCATIONAL
TRUST, dated
 December 29, 1999
	 		 		 	 /s/ Christopher Barney

		 		 		 		 	CHRISTOPHER BARNEY, D.D.S.
	By:	 	 /s/ Christine E. Erickson
	 		 		 	
		 	Christine E. Erickson, Trustee	 		 		 	
		 		 		 		 	 /s/ Emerico Gomex, Jr.

	By:	 	 /s/ Jeffrey T. Erickson
	 		 		 	EMERICO GOMEZ, JR., D.D.S.
		 	Jeffrey T. Erickson, Trustee	 		 		 	
				
	ERICKSON INVESTMENT LIMITED PARTNERSHIP	 		 		 	 /s/ Paul Brenchley

		 		 		 		 	PAUL BRENCHLEY, D.D.S.
					
	By:	 	 Erickson Family Trust dated July 20,
 2000, its General
Partner
	 		 		 	
		 		 		 		 	
					
	By:	 	 /s/ Christine E. Erickson
	 		 		 	 /s/ Christe D. Erockson

		 	Christine E. Erickson, Trustee	 		 		 	CHRISTE D. ERICKSON
					
	By:	 	 /s/ Jeffrey T. Erickson
	 		 		 	
		 	Jeffrey T. Erickson, Trustee	 		 		 	
		 		 		 	BRENCHLEY DENTAL CONTRACTING, PLC
					
		 		 		 	By:	 	 /s/ Paul Brenchley

		 		 		 	Its:	 	Owner

  

 23 

 Exhibit 1.4(a) 
 Settlement Statement 
  

						
	 Cash Consideration
	  		  	$	18,700,000
	 Less:
	  		  		
	 McCann & Associates
	  		  	$	 660,000
	 Total Payoffs
	  		  	$	 660,000
	 Aggregate Proceeds to Tooth Doctor
	  	$	18,040,000

  

									
	 Disbursement of Aggregate Proceeds
	  			 		
		  	Percentage to Owners of each Seller:	  			 	 	Cash Proceeds
	 Central – 35% of Aggregate Proceeds
	  			 	$	6,314,000
		  	Amount to be paid to Central	  	85	%	 	$	5,366,900
	 Owners:
	  		  			 		
		  	Brenchley PLC	  	12.5	%	 	$	789,250
		  	Ms. Erickson	  	2.5	%	 	$	157,850
	 Doctor for Kids – 30.75% of Aggregate Proceeds
	  			 	$	5,547,300
	 East Valley – 31.25% of Aggregate Proceeds
	  			 	$	5,637,500
		  	Amount to be paid to East Valley	  	68	%	 	$	3,833,500
	 Owners:
	  		  			 		
		  	Dr. Barney	  	20.0	%	 	$	1,127,500
		  	Dr. Gomez	  	10.0	%	 	$	563,750
		  	Ms. Erickson	  	2.0	%	 	$	112,750
	 Globe – 0.00% of Aggregate Proceeds
	  			 	$	0.00
	 Kids Dental – 3.00% of Aggregate Proceeds
	  			 	$	541,200
	 TOTAL
	  		  			 	$	18,040,000

  

 24 

 Exhibit 1.4 
 Allocation of Cash Consideration 
 See attached. 
  

 25 

 Exhibit A 
 Representations and Warranties of Care for Kids 
 A.1. Organization and Standing. Care for
Kids is a limited liability company duly organized, validly existing, and in full force and effect under the laws of the State of Delaware. Care for Kids has full limited liability company power and authority to own, lease, use and operate its
properties and to conduct its business as and where now owned, leased, used, operated and conducted and is duly qualified or licensed as a foreign corporation or limited liability company, as applicable, and is in good standing in each jurisdiction
in which the character or location of the property owned, leased or operated by it or the nature of the business conducted by it makes such qualification necessary, except where the failure to be so qualified or licensed would not have a Material
Adverse Effect (as defined in Section B.9(a) of Exhibit B attached hereto) on Care for Kids and its subsidiaries, taken as a whole. Care for Kids is not in default in the performance, observation, or fulfillment of any provision of its certificate
of incorporation or formation, bylaws, or other organizational documents, each as amended to date. 
 A.2. Capitalization. 

(a) Membership Interests. ADP-CFK is the sole holder of the issued and outstanding membership interests in Care for Kids, each of which has been
duly authorized and validly issued, is fully paid and non-assessable, and has not been issued in violation of any preemptive or similar rights. 
 (b) No Other Commitment. There are no outstanding subscriptions, options, warrants, puts, calls, agreements, understandings, claims or other commitments or rights of any type relating to the issuance, sale or transfer by ADP-CFK of
any membership interests in or other securities of Care for Kids, nor are there outstanding any securities which are convertible into or exchangeable for any membership interests in or other securities of Care for Kids, and Care for Kids has no
obligation of any kind to issue any additional membership interests or other securities, except that pursuant to ADPI’s Amended and Restated Credit Agreement with KeyBank National Association (“KeyBank”) dated
February 22, 2005 (the “KeyBank Credit Facility”), KeyBank will have a security interest in the ADP-CFK membership interest in Care for Kids after the Closing. 
 (c) Compliance With Laws; Liens. The issuance, sale, and transfer by Care for Kids of all of the issued and outstanding membership interests in
Care for Kids have been in full compliance with all applicable federal and state securities laws and other laws, and all such membership interests are free and clear of all liens, security interests, encumbrances, pledges, charges, claims, voting
trusts and restrictions on transfer of any nature whatsoever, except restrictions on transfer imposed by or pursuant to federal and state securities laws and except that pursuant to the KeyBank Credit Facility, KeyBank will have a security interest
in the outstanding membership interests of ADP-CFK in Care for Kids after the Closing. Care for Kids has not agreed to register any securities under the Securities Act of 1933, as amended, and the rules and regulations thereunder or under any state
securities law. 
  

 A-1 

 A.3. Subsidiaries. Except for Arizona Subsidiary, Care for Kids owns no subsidiary corporations,
nor does Care for Kids own, directly or indirectly, any equity or other ownership interest in any corporation, partnership, joint venture, or other entity or enterprise (hereinafter, simply “entity”), except to the extent
that Care for Kids may be considered to have an indirect ownership interest in other entities in which ADPI has an equity or other ownership interest. Care for Kids is not subject to any obligation or requirement to provide funds to or make any
investment (in the form of a loan, capital contribution, or otherwise) in any entity except for Arizona Subsidiary, pursuant to Section 3 of the Operating Agreement. 
 A.4. Business. Care for Kids has had no operations prior to the date of this Agreement (other than the filing of its certificate of formation and other organizational activities necessary to prepare for the
consummation of the transactions contemplated hereby). 
 A.5. Power and Authority. Care for Kids has all requisite limited liability
company power and authority to enter into this Agreement and to perform its obligations under this Agreement. This Agreement and the transactions contemplated by this Agreement have been duly and validly authorized by all necessary limited liability
company action on the part of Care for Kids. This Agreement has been duly executed and delivered by Care for Kids and constitutes the legal, valid and binding obligation of Care for Kids, enforceable against Care for Kids in accordance with its
terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting creditors’ rights generally and general equitable principles. 
 A.6. Conflicts; Consents and Approvals. The execution and delivery of this Agreement by Care for Kids and the consummation by them of the
transactions contemplated in this Agreement will not: 
 (a) Violate or conflict with, or result in a breach of any provision of, or
constitute a default (or an event which, with the giving of notice, the passage of time or otherwise, would constitute a default) under, or entitle any third party (with the giving of notice, the passage of time or otherwise) to terminate,
accelerate or call a default under, or result in the creation of any lien, security interest, charge or encumbrance upon any of the properties or assets of Care for Kids under any of the terms, conditions or provisions of the certificate of
incorporation or formation or bylaws, each as amended to date, of Care for Kids, or any note, bond, mortgage, indenture, deed of trust, license, contract, undertaking, agreement, lease or other instrument or obligation to which Care for Kids is a
party and which is material to ADPI and its subsidiaries (including, without limitation, Care for Kids), taken as a whole, except that pursuant to the KeyBank Credit Facility, KeyBank will have a security interest in the Contributed Property after
the Closing; 
 (b) To the best of Care for Kids’ knowledge, violate any order, writ, injunction, decree, statute, rule or regulation
applicable to Care for Kids or its properties or assets; or 
 (c) Require any action or consent or approval of, or review by, or
registration with any third party, court or governmental body or other agency, instrumentality or authority, other than such actions taken in respect of federal and state securities laws as are contemplated by this Agreement. 
  

 A-2 

 A.7. Brokerage and Finder’s Fees. Neither ADPI nor any of its subsidiaries (including,
without limitation, Care for Kids), shareholders, directors, officers or employees has incurred, or will incur on behalf of ADPI or Care for Kids, any brokerage, finder’s or similar fee in connection with the transactions contemplated by this
Agreement. 
  

 A-3 

 Exhibit B 
 Representations and Warranties of Tooth Doctor 
 B.1. Organization and Standing. 

(a) Tooth PC is a professional corporation duly organized, validly existing, and in good standing under the laws of the State of Arizona, has full
corporate power and authority to own, lease, use, and operate its properties and to conduct its business as and where now owned, leased, used, operated, and conducted, and is not qualified to do business in any jurisdiction other than the State of
Arizona, and neither the nature of the business conducted by it nor the properties it owns, leases, or operates requires it to qualify to do business in any other jurisdiction. 
 (b) Central, East Valley, Globe, and Kids Dental are limited liability companies duly organized, validly existing, and in good standing under the laws of
the State of Arizona, have full limited liability company power and authority to own, lease, use, and operate their properties and to conduct their business as and where now owned, leased, used, operated, and conducted, and they are not qualified to
do business in any jurisdiction other than the State of Arizona, and neither the nature of the business conducted by them nor the properties they own, lease, or operate requires them to qualify to do business in any other jurisdiction. 

(c) Doctor for Kids is a limited liability company duly organized, validly existing, and in good standing under the laws of the State of Nevada, has
full limited liability company power and authority to own, lease, use, and operate its properties and to conduct its business as and where now owned, leased, used, operated, and conducted, and it is not qualified to do business in any jurisdiction
other than the State of Nevada and the State of Arizona, and neither the nature of the business conducted by it nor the properties it owns, leases, or operates requires it to qualify to do business in any other jurisdiction. 
 (d) Erickson Living Trust is a trust duly organized and validly existing, under the laws of the State of Nevada, has full power and authority to own,
lease, use, and operate its properties and to conduct its business as and where now owned, leased, used, operated, and conducted, and neither the nature of the business conducted by it nor the properties it owns, leases, or operates requires it to
qualify to do business in any other jurisdiction. 
 (e) Erickson Children’s Trust is a trust duly organized and validly existing, under
the laws of the State of Nevada, has full power and authority to own, lease, use, and operate its properties and to conduct its business as and where now owned, leased, used, operated, and conducted, and neither the nature of the business conducted
by it nor the properties it owns, leases, or operates requires it to qualify to do business in any other jurisdiction. 
 (f) EILP is a
limited partnership duly organized, and validly existing, and in good standing under the laws of the State of Nevada, has full power and authority to own, lease, use, and operate its properties and to conduct its business as and where now owned,
leased, used, operated, and conducted, and neither the nature of the business conducted by it nor the properties it owns, leases, or operates requires it to qualify to do business in any other jurisdiction. 
  

 B-1 

 (g) No Seller has received any written notice or assertion within the last three years from any
governmental official in any jurisdiction to the effect that it is required to be qualified or authorized to do business in any such jurisdiction in which it is not so qualified or has not obtained such authorization. No Seller is in default in the
performance, observation, or fulfillment of any provision of its certificate or articles of incorporation or organization, bylaws, or other organizational documents, each as amended to date. 
 B.2. Capitalization. 
 (a) Stock
Ownership. The issued and outstanding capital stock of Tooth PC consists solely of a single class of common equity voting stock, which has been duly authorized and validly issued, is fully paid and non-assessable, is owned legally and
beneficially by Dr. Erickson, and none of which has been issued in violation of any preemptive or similar rights; 
 (b) Membership
Interests. The membership interests of: 
 (i) Central consist solely of a single class of membership voting units or similar interests,
all of which are owned legally and beneficially by Tooth PC (85%), Brenchley PLC (12.5%), and Ms. Erickson (2.5%), and none of which has been issued in violation of any preemptive or similar rights; 
 (ii) Doctor for Kids consist solely of a single class of membership voting units or similar interests, all of which are owned legally and beneficially
by EILP (99%) and Tooth PC (1%) and none of which has been issued in violation of any preemptive or similar rights; 
 (iii) East
Valley consist solely of a single class of membership voting units or similar interests, all of which are owned legally and beneficially by Dr. Erickson (1%), Dr. Barney (20%), Dr. Gomez (10%), Ms. Erickson (2%), and EILP (67%),
and none of which has been issued in violation of any preemptive or similar rights; 
 (iv) Globe consist solely of a single class of
membership voting units or similar interests, all of which are owned legally and beneficially by East Valley (100%) and none of which has been issued in violation of any preemptive or similar rights; 
 (v) Kids Dental consist solely of a single class of membership voting units, all of which are owned legally and beneficially by EILP (88%), Brenchley
PLC (10%), and Ms. Erickson (2%) and none of which has been issued in violation of any preemptive or similar rights; 
 (vi) The
primary beneficiaries of the Erickson Living Trust are Dr. Erickson and Christine E. Erickson. Dr. Erickson and Christine E. Erickson are the authorized Trustees of the Erickson Living Trust; 
 (vii) The primary beneficiaries of the Erickson Children’s Trust are the children of Dr. Erickson and Christine E. Erickson. Dr. Erickson
and Christine E. Erickson are the authorized Trustees of the Erickson Children’s Trust; 
  

 B-2 

 (viii) The partnership interests of EILP consist solely of a single class of partners with membership
voting rights, all of which are owned legally and beneficially by Erickson Children’s Trust (99%) and the Erickson Family Trust (1%). 
 (b) No Other Commitment. There are no outstanding subscriptions, options, warrants, puts, calls, agreements, understandings, claims or other commitments or rights of any type relating to the issuance, sale or transfer by any Seller
of any membership interests or other securities of any Seller, nor are there outstanding any securities which are convertible into or exchangeable for any membership interests of any Seller, and no Seller has any obligation of any kind to issue any
additional securities or membership interests. 
 (c) Compliance with Laws; Liens. The issuance, sale, and transfer by Sellers of all
of the issued and outstanding membership interests of Sellers have been in full compliance with all applicable federal and state securities laws and other laws, and all such membership interests are free and clear of all liens, security interests,
encumbrances, pledges, charges, claims, voting trusts and restrictions on transfer of any nature whatsoever, except restrictions on transfer imposed by or pursuant to federal and state securities laws. No Seller has agreed to register any securities
under the Securities Act of 1933, as amended, and the rules and regulations thereunder or under any state securities law. 
 B.3.
Subsidiaries. Except for Globe, which is a wholly owned subsidiary of East Valley, no Seller owns any subsidiary corporations or, directly or indirectly, any equity or other ownership interest in any entity. No Seller is subject to any
obligation or requirement to provide funds to or make any investment (in the form of a loan, capital contribution, or otherwise) in any entity. 
 B.4. Business and Assets. 
 (a) Except to the extent set forth on Schedule B.4, each Seller is and has been engaged in
the business of providing dental services to children (including orthodontic services), primarily to children covered by AHCCCS, and is not engaged in any other business whatsoever except as may be incidental to the foregoing. 
 (b) The Contributed Property includes all assets used by Sellers in the Business. For purposes of clarification, other than (1) the offices leased
to Sellers for use in the Business, (2) ownership by EILP (which is beneficially owned by the Erickson Living Trust and the Erickson Children’s Trust) in Doctor for Kids, East Valley, and Kids Dental, and (3) the trade names owned by
Dr. Erickson (which will be assigned to Care for Kids), no real estate trust or other entity beneficially owned by Dr. Erickson or any of his immediate family members, or any trust established for the benefit of Dr. Erickson or any of
his immediate family members, or any trust for which Dr. Erickson serves as trustee, legally, beneficially, or equitably owns or has any interest in any assets of Sellers used in the Business, including without limitation leasehold
improvements. 
 B.5. Power and Authority; Capacity. Each Seller has all requisite corporate or limited liability company (as
applicable) power and authority to enter into this Agreement and perform its obligations under this Agreement. Tooth PC, Brenchley PLC, Erickson Living Trust, the 
  

 B-3 

 Erickson Children’s Trust, and EILP have all requisite power and authority to enter into this Agreement and perform
their respective obligations under this Agreement. This Agreement and the transactions contemplated by this Agreement have been duly and validly authorized by all necessary corporate action on the part of Tooth PC and Brenchley PLC and all
necessary limited liability company action on the part of Central, Doctor for Kids, East Valley, Globe, and Kids Dental, and all necessary actions on the part of Erickson Living Trust, Erickson Children’s Trust, and EILP. Each Seller and each
Owner has the capacity and right to enter into this Agreement and perform all of its obligations under this Agreement without any restriction. This Agreement has been duly executed and delivered by each Seller and each Owner and constitutes the
legal, valid, and binding obligations of each Seller and each Owner enforceable against each Seller and each Owner in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, or other similar laws affecting creditors’ rights generally and general equitable principles. No other action or proceeding by or in respect of any Seller or Owner is or was necessary to authorize this Agreement of the consummation
of the transactions contemplated by this Agreement. 
 B.6. Consents and Approvals. Except to the extent already obtained or completed
by Sellers prior to the Closing, or as set forth on Schedule B.6, or where the failure to obtain or complete would not have and could not reasonably be expected to have a Material Adverse Effect (as defined in paragraph B.9(a), below) on the
Business, neither the execution and delivery of this Agreement by Sellers and Owners nor the consummation by Sellers and Owners of the transactions contemplated by this Agreement requires or will require any action, consent, or approval of, or
review by, or registration with, any third party, court, or governmental body or other agency, instrumentality, or authority. 
 B.7.
Financial Statements. 
 (a) Sellers have furnished to Care for Kids, for each of the fiscal years ended December 31, 2003, 2004,
and 2005, the statements of assets, liabilities, and equity for Sellers as of the end of such fiscal year and the related statements of revenue, expenses, and retained earnings and cash flows (collectively, the “Financial
Statements”). The Financial Statements were prepared on a cash basis, were prepared from and are in accordance with the books and records of Sellers, and fairly present the financial condition of Sellers as of the dates stated and the
results of operations of Sellers for the periods then ended in accordance with such practices. 
 (b) Sellers have furnished to Care for Kids
the statements of assets, liabilities, and equity for Sellers as of September 30, 2006, and the related statements of revenue, expenses, and retained earnings and cash flows for the period beginning on January 1, 2006 through
September 30, 2006 (collectively, the “Interim Statements”). The Interim Statements were prepared on a cash basis, were prepared from and are in accordance with the books and records of Sellers, and fairly present the
financial condition of Sellers as of the dates stated and the results of operations of Sellers for the periods then ended in accordance with such practices. 
 (c) Sellers have furnished to Care for Kids the pro forma statements of assets, liabilities, and equity for Sellers as of the Effective Time (the “Estimated Closing Balance Sheet”). The
Estimated Closing Balance Sheet was prepared on the accrual basis and in accordance with the books and records of Sellers (but using only such information as was 
  

 B-4 

 available as of the Closing Date), and, due to the limitations inherent in the fact that the Estimated Closing Balance
Sheet is “as of” the Effective Time, is a good faith estimate of the financial condition of Sellers as of the Effective Time and the results of operations of Sellers for the period then ended. 
 B.8. Undisclosed Liabilities. Except as set forth on Schedule B.8, no Seller has any liability or obligation of any nature (whether
liquidated, unliquidated, accrued, absolute, contingent or otherwise and whether due or to become due) except: 
 (a) Those set forth in the
Financial Statements, the Interim Statements, and the Estimated Closing Balance Sheet; and 
 (b) Those arising from and after the date of
this Agreement under agreements or other commitments specifically identified in Schedule B.8-2. 
 B.9. Absence of Certain
Changes. Except as set forth in Schedule B.9, since December 31, 2005, there has not been: 
 (a) Any material adverse change
in or effect on the business, operations, assets, properties, prospects, rights, or condition (financial or otherwise) of any Seller or the ability of any Seller to consummate the transactions contemplated by this Agreement, or any occurrence,
circumstance, or combination thereof which reasonably could be expected to result in any such material adverse change or effect (a “Material Adverse Effect”) on the Business; 
 (b) Any declaration, setting aside, or payment of any distribution or payment (in cash or in kind) by any Seller to any of its shareholders or members or
any direct or indirect redemption, purchase, or other acquisition by any Seller of any of its capital stock, membership interests, or other securities or any rights or agreements to purchase or acquire any of its capital stock, membership interests,
or other securities; 
 (c) Any increase in amounts payable by any Seller to or for the benefit of, or committed to be paid by any Seller to
or for the benefit of, any of its shareholders, members, directors, managers, or officers, or any consultant, agent, independent contractor, or employee of any Seller, or any relatives of any such person, or any increase in any benefits granted
under any bonus, profit-sharing, pension, retirement, deferred compensation, insurance, or other direct or indirect benefit plan, payment or arrangement made to, with, or for the benefit of any such person, excepting only (i) reimbursement, in
the ordinary course of business consistent with past practices, of out-of-pocket expenses incurred by employees or independent contractors of any Seller directly in connection with the Business, (ii) compensation in amounts consistent with past
practices, and (iii) cost-of-living or other adjustments to compensation consistent with past practices; 
 (d) Any transaction entered
into or carried out by any Seller other than in the ordinary and usual course of business 
 (e) Any borrowing or agreement to borrow funds
by any Seller, any incurring by any Seller of any other obligation or liability (contingent or otherwise), except current liabilities incurred in the usual and ordinary course of business (consistent with past practices), or any endorsement,
assumption, or guarantee of payment or performance of any loan or obligation of any other individual, firm, corporation, or other entity by any Seller; 
  

 B-5 

 (f) Any material change in any Seller’s method of doing business or any change in any Seller’s
accounting principles or practices or its methods of application of such principles or practices; 
 (g) Any mortgage, pledge, lien, security
interest, hypothecation, charge, or other encumbrance imposed or agreed to be imposed on or with respect to the property or assets of any Seller; 
 (h) Any sale, lease, or other disposition of, or any agreement to sell, lease, or otherwise dispose of any of the properties or assets of any Seller, other than in the usual and ordinary course of business consistent with past practices;

 (i) Any purchase of or any agreement to purchase assets (other than inventory purchased in the ordinary course of business consistent with
past practices) for an amount in excess of $10,000 for any one purchase made by any Seller or $25,000 for all such purchases made by any Seller or any lease or any agreement to lease, as lessee, any capital assets with payments over the term thereof
to be made by any Seller exceeding an aggregate of $10,000; 
 (j) Any loan or advance made by any Seller to any individual, firm,
corporation, or other entity; 
 (k) Any modification, waiver, change, amendment, release, rescission, or termination of, or accord and
satisfaction with respect to, any material term, condition, or provision of any contract, agreement, license, or other instrument to which any Seller is a party, other than any satisfaction by performance in accordance with the terms thereof in the
usual and ordinary course of business; 
 (l) Any labor dispute or disturbance adversely affecting the operation or condition (financial or
otherwise) of the Business, including without limitation the filing of any petition or charge of unfair labor practice with any governmental or regulatory authority, efforts to effect a union representation election, actual or threatened employee
strike, work stoppage or slow down; or 
 (m) Any disciplinary or other similar action, proceeding, or investigation taken by any
governmental or accrediting board, agency, or authority against or with respect to any Seller, any shareholder or member of any Seller, or any employee or, to the best of each Owner’s knowledge, independent contractor of any Seller. 

B.10. Taxes. 
 (a) Except as set
forth on Schedule B.10-1, each Seller has duly, properly, and timely filed all federal, state, local and foreign tax returns and tax reports required to be filed by it, all such returns and reports are true, correct and complete, other than
an amendment to the 2005 return of Kids Dental none of such returns and reports have been amended, and any and all taxes, including any interest, penalty, or addition thereto, whether disputed or not and including 
  

 B-6 

 any obligation to indemnify or otherwise assume or succeed to the tax liability of any other Person, assessments, fees
and other governmental charges due from it, including without limitation those arising under such returns and reports, have been fully paid or are fully accrued as liabilities in the Financial Statements, the Interim Statements, or the Estimated
Closing Balance Sheet and will be timely paid. No claim has been made by authorities in any jurisdiction where any Seller did not file tax returns that it is or may be subject to taxation or to reporting therein. Except as set forth on Schedule
B.10-1, each Seller has duly, properly, and timely filed all returns and reports required to be filed by it, and has duly, properly, and timely remitted or delivered all property required to be remitted or delivered by it, under the Revised
Arizona Unclaimed Property Act, and all amounts or property due from it under such Act have been fully paid or are fully accrued as liabilities in the Financial Statements, the Interim Statements, or the Estimated Closing Balance Sheet. 

(b) Each Seller has delivered to Care for Kids copies of all federal, state, local, and foreign income tax returns filed for it for taxable periods
ended on or after December 31, 2003. Schedule B.10-2 sets forth the dates and results of any and all audits conducted by taxing authorities against any Seller within the last five years or otherwise with respect to any tax year for which
assessment is not barred by any applicable statute of limitations. No waivers of any applicable statute of limitations for the filing of any tax returns or payment of any taxes or assessments of any deficient or unpaid taxes are outstanding. Except
as set forth in Schedule B.10-2, all deficiencies resulting from any audits have been paid or settled. There are no pending or, to the best of each Owner’s knowledge, threatened federal, state, local or foreign tax audits or assessments
affecting any Seller and no agreement with any federal, state, local or foreign taxing authority that may affect the subsequent tax liabilities of any Seller. 
 (c) No Seller is liable for taxes, assessments, fees or governmental charges for which it has not made adequate provision, including setting aside a sufficient reserve to cover that potential liability in full in the
Financial Statements, the Interim Statements, or the Estimated Closing Balance Sheet. No Seller has received any property which constitutes, or with the passage of time would constitute, unclaimed property subject to remittance or payment to the
State of Arizona under the Revised Arizona Unclaimed Property Act for which it has not made adequate provision, including setting aside a sufficient reserve to cover such potential remittance or delivery in full in the Financial Statements, the
Interim Statements, or the Estimated Closing Balance Sheet. 
 (d) There exists no tax-sharing agreement or arrangement pursuant to which
any Seller is obligated to pay the tax liability of any other person or entity, or to indemnify any other person or entity with respect to any tax. 
 (e) The United States of America, the State of Arizona, the State of Nevada, and the Cities of Phoenix, Mesa, and Globe, Arizona constitute all states, territories and jurisdictions to which any tax is properly
payable by any Seller or in which a tax report must be filed. 
 (f) Each Seller has withheld and paid all taxes required to have been
withheld and paid in connection with any amounts paid or owing to any employee, independent contractor, creditor, stockholder, or other third party, and all Forms W-2 and 1099 required with respect thereto have been properly completed and timely
filed. 
  

 B-7 

 B.11. Compliance with Law. Each Seller has complied and is in compliance in all material respects
with all applicable laws, statutes, orders, rules, regulations, policies and guidelines promulgated, and all judgments, decisions and orders entered, by any federal, state, local or foreign court or governmental authority, agency, or instrumentality
relating to the Business, including without limitation all zoning, fire, safety, building, and asbestos laws, ordinances, regulations and requirements, Environmental Laws (as defined below), Governmental Reimbursement Laws (as defined in Section
B.27, below), Title VII of the Civil Rights Act of 1964, as amended, the Fair Labor Standards Act, as amended, the Occupational Safety and Health Act of 1970, as amended, the Americans with Disabilities Act of 1990, as amended, the Worker Adjustment
and Retraining Notification Act, as amended, the Revised Arizona Unclaimed Property Act, all applicable federal, state and local laws, rules and regulations relating to employment, and all applicable laws, rules and regulations governing payment of
minimum wages and overtime rates, and the withholding and payment of taxes from compensation of employees; all laws, rules, and regulations relating to the licensing or credentialing of dentists, endodontists, periodontists, prosthodontists,
pediatric dentists, orthodontists, oral surgeons, certified registered dental assistants, hygienists, and other dental care professionals involved directly or indirectly with the Business; all federal or state laws and regulations relating to fraud
and abuse; and all related laws, ordinances, regulations and requirements (collectively, the “Applicable Laws”). Except as set forth in Schedule B.11-1, no Seller has been charged with or given notice of any violation
of any of the Applicable Laws which violation has not been remedied in full (without any remaining liability). 
 Schedule B.11-2 sets
forth a list of all franchises, licenses, permits, consents, authorizations, approvals and certificates which are necessary for the Business to be carried on as presently conducted (collectively, the “Permits”), each of which
currently is owned by a Seller and is valid and in full force and effect. Except as set forth in Schedule B.11-2, no Seller is in violation of any of the Permits, and there are no pending or, to the best of each Owner’s knowledge,
threatened proceedings which could result in the revocation or cancellation of, or inability of any Seller to obtain or renew, any Permit. 
 Except as set forth in Schedule B.11-3, (a) No Seller has not disposed of, or contracted for the disposal of, hazardous wastes, hazardous substances, infectious or medical waste, radioactive waste or sewage sludge, and
(b) no such wastes, substances, or sludge generated by any Seller have finally come to be located on any site which is or has been (including as a potential or suspect site) included in any published federal, state, or local
“superfund” or other list of hazardous or toxic waste sites. 
 For purposes of this Agreement, “Environmental
Laws” shall mean all federal, state, and local environmental laws, statutes, ordinances, and codes relating to the protection of public health or the environment (including without limitation any water, land, subsurface, air, fish,
wildlife, and other natural resources) or governing the use, storage, treatment, generation, transportation, processing, handling, management, production, or disposal of solid wastes, medical wastes, toxic substances, hazardous wastes, hazardous
substances, petroleum, petroleum-based products, radio-nuclides, or other radioactive materials and the rules, regulations, policies, guidelines, interpretations, decisions, orders, and directives of federal, state, and local government agencies and
authorities with respect thereto. 
  

 B-8 

 B.12. Proprietary Rights. Schedule B.12-1 sets forth: 
 (a) All material names, patents, inventions, trade secrets, proprietary rights, computer software, trademarks, trade names, service marks, logos,
copyrights and franchises, and all applications therefor, registrations thereof and licenses, sublicenses or agreements in respect thereof (1) which any Seller owns or has the right to use or to which it is a party and (2) which is used in
the operation of the Business; and 
 (b) All filings, registrations or issuances of any of the foregoing with or by any federal, state,
local or foreign regulatory, administrative or governmental office or offices (all items in (a) and (b) of this section being sometimes hereinafter referred to collectively as the “Proprietary Rights”). 

Except as set forth in Schedule B.12-2, Sellers (or Dr. Erickson for the trade names used in connection with the Business) are the sole
and exclusive owners of all right, title and interest in and to all Proprietary Rights free and clear of all liens, claims, charges, equities, rights of use, encumbrances and restrictions whatsoever, and there is no pending or, to the best of each
Owner’s knowledge, threatened investigation, proceeding, inquiry or other review by any federal, state, local or foreign regulatory, administrative or governmental office or offices with respect to any Seller’s right, title or interest in
any Proprietary Right. 
 No name, patent, invention, trade secret, proprietary right, computer software, trademark, trade name, service
mark, logo, copyright, franchise, license, sublicense, or other such right, other than the Proprietary Rights, is necessary for the operation of the Business in substantially the same manner as it is presently conducted. The Business has not been
and is not now being conducted in contravention of any trademark, copyright or other proprietary right of any third party. 
 Except as set
forth in Schedule B.12-3, none of the Proprietary Rights: (i) has been hypothecated, sold, assigned or licensed by any Seller or any other person, corporation, firm or other entity; (ii) to the best of each Seller and Owner’s
knowledge, infringes upon or violates the rights of any person, firm, corporation, or other entity; (iii) to the best of each Seller and Owner’s knowledge, is subject to challenge, claims of infringement, unfair competition or other
claims; or (iv) to the best of each Seller or Owner’s knowledge, is being infringed upon or violated by any person, firm, corporation or other entity. 
 Except as set forth in Schedule B.12-4: (A) No Seller has given, directly or indirectly, any indemnification against patent, trademark or copyright infringement as to any equipment, materials, products,
services or supplies which any Seller uses, licenses, or sells; (B) to the best of each Owner’s knowledge, no product, process, method or operation presently sold, engaged in, or employed by any Seller infringes upon any rights owned by
any other person, firm, corporation, or other entity; and (C) there is no pending or, to the best of each Owner’s knowledge, threatened claim or litigation against any Seller contesting the right of any Seller to sell, engage in, or employ
any such product, process, method, or operation. 
  

 B-9 

 Except as set forth in Schedule B.12-5, Sellers have exclusive rights to own and use the computer
software used in the operation of Business (the “Software”). Schedule B.12-1 lists and briefly describes, and Sellers have provided to Care for Kids true, correct, and complete copies of, all material licenses,
agreements, documents, and other materials relating to the Software and to the rights of Sellers therein. No Seller has licensed or otherwise authorized any other person to use or make use of all or any part of the Software, nor has it granted,
assigned, or otherwise conveyed any right in or to the Software. 
 B.13. Restrictive Documents or Laws. Except as set forth in
Schedule B.13, No Seller is a party to or bound under any mortgage, lien, lease, agreement, contract, instrument, law, order, judgment, or decree, or any similar restriction not of general application, which has a Material Adverse Effect on
or reasonably could be expected to have a Material Adverse Effect on: (a) the condition of the Business (financial or otherwise) or the assets used therein; (b) the continued operation of the Business after the Closing on substantially the
same basis as that on which it is currently operated; or (c) the consummation of the transactions contemplated by this Agreement. 
 B.14. Insurance. Sellers have been and are insured with respect to their property and the conduct of the Business in such amounts and against such risks as are sufficient for compliance with Applicable Laws and as are adequate to
protect the Business in accordance with normal industry practice. Such insurance is and has been provided by insurers unaffiliated with Sellers, which insurers are, to the best of each Owner’s knowledge, financially sound and reputable. Set
forth in Schedule B.14 is a true, correct, and complete list of all insurance policies and bonds, if any, in force for which any Seller or any person employed or otherwise retained by any Seller is named as an insured party, or for which any
Seller or any person employed or otherwise retained by any Seller has paid any premiums, and such lists correctly state the name of the insurer, the name of each insured party, the type and amount of coverage, deductible amounts, if any, the
expiration date and the premium amount of each such policy or bond. Except as set forth in Schedule B.14, all such policies or bonds are currently in full force and effect, and no notice of cancellation or termination has been received with
respect to any such policy or bond. All premiums due and payable on such policies and bonds have been paid. Except as disclosed in Schedule B.14, no Seller is a co-insurer under any term of any insurance policy. 
 B.15. Bank Accounts, Depositories; Powers of Attorney. Set forth in Schedule B.15 is a true, correct, and complete list of the names and
locations of all banks or other depositories in which any Seller has one or more accounts or safe deposit boxes, and the names of the persons authorized to draw thereon, borrow therefrom, or have access thereto. Except as set forth in Schedule
B.15, no person or entity has a power of attorney from any Seller. 
 B.16. Title to and Condition of Properties. Except as set
forth in Schedule B.16-1, Each Seller has good, valid, and marketable title to all of its assets of every kind, nature, and description, tangible or intangible, wherever located, all of which taken together constitute all of the property now
used in and necessary for the conduct of the Business as presently conducted (including without limitation all assets shown or reflected on the Financial Statements, the Interim Statements, and the Estimated Closing Balance Sheet). Except as set
forth in Schedule B.16-2, all such assets are owned free and clear of all mortgages, pledges, liens, security 
  

 B-10 

 interests, encumbrances and restrictions of any nature whatsoever, including without limitation: (a) rights or
claims of parties in possession; (b) easements or claims of easements; (c) encroachments, overlaps, boundary line or water drainage disputes or any other matters; (d) any lien or right to a lien for services, labor or material
furnished; (e) special tax or other assessments; (f) options to purchase or lease; (g) contracts, covenants, or reservations which restrict the use of such properties; and (h) violations of Environmental Laws and zoning, fire
safety, building, and other laws, ordinances and regulations applicable to such properties. The current uses of all such assets are in compliance with all federal, state, local or other governmental building, zoning, health, safety, platting,
subdivision or other law, ordinance or regulation, or any applicable private restriction, and such uses are legal conforming uses. Except as set forth in Schedule B.16-3, no financing statement under the Uniform Commercial Code or similar law
naming any Seller as debtor has been filed in any jurisdiction, and no Seller is a party to or bound under any agreement or legal obligation authorizing any party to file any financing statement. Set forth in Schedule B.16-4 is a complete and
accurate description of all of the real property owned, leased, or used by any Seller, and no Seller owns, leases, or uses no other real property. 
 Except as set forth in Schedule B.16-5, all real property and structures and all machinery, equipment, and other tangible personal property owned, leased or used by any Seller which are material to the operation of the Business are
suitable for the purpose or purposes for which they are being used (including full compliance with all Applicable Laws relating to such use), and are in good condition and repair. There are no material structural defects in the exterior walls or the
interior bearing walls, the foundation or the roof of any building or other such structure owned or used by any Seller, and the electrical, plumbing, heating, and air conditioning systems of all such structures are in good operating condition. No
hazardous waste or toxic material has been disposed of, discharged on, or leaked from, or has otherwise contaminated, any real property owned, leased, or used by any Seller, and no hazardous waste or toxic material is stored upon or in any real
property owned, leased, or used by any Seller (including without limitation any underground storage tanks). No Seller has received any notice of non-compliance or violations or threatened non-compliance or violations of any Environmental Laws
relating to any real property owned, leased, or used by any Seller. The utilities servicing the real properties owned, leased, or used by Sellers are adequate to permit the continued operation of the Business as currently operated, and there are no
pending or, to the best of each Owner’s knowledge, threatened zoning, condemnation or eminent domain proceedings, building, utility or other moratoria, or injunctions or court orders which would materially affect such continued operation.

 B.17. Brokerage and Finder’s Fees. Except as set forth in Schedule B.17, no Seller or Owner, nor any of their
respective members, shareholders, managers, directors, officers, employees, agents, or representatives, has incurred or will incur, on behalf of any Seller or Owner, any brokerage, finder’s, or similar fee in connection with the transactions
contemplated by this Agreement. 
 B.18. Legal Proceedings, etc. Except as set forth in Schedule B.18-1, there are no (and
since January 1, 2003, there have been no) claims, proceedings, suits, or investigations pending or, to the best of each Owner’s knowledge, threatened against or relating to any Seller or the Business (or any of the employees or, to the
best of each Owner’s knowledge, independent contractors of any Seller in connection with the Business), by or before any federal, state, local 
  

 B-11 

 or foreign court or governmental body, agency, or authority. There are no such claims, proceedings, suits or
investigations pending or, to the best of each Owner’s knowledge, threatened for the purpose of enjoining or preventing the consummation of the Contribution or any other transaction contemplated by this Agreement or otherwise challenging the
validity or propriety of the transactions contemplated by this Agreement. Except as set forth in Schedule B.18-2, no Seller is subject to any judgment, order, or decree, or any governmental restriction applicable to it, which has a reasonable
probability of having a Material Adverse Effect on the Business, or which may materially adversely affect the ability of any Seller to acquire any property or conduct the Business as it is currently being conducted. Except as set forth in
Schedule B.18-3, to the best of each Owner’s knowledge, there are no facts, circumstances, or occurrences which may give rise to any claims, proceedings, or suits against any Seller, or any of the employees or independent contractors of
any Seller in connection with the Business. 
 B.19. ERISA. 
 (a) Schedule B.19 identifies each “employee benefit plan,” as defined in Section 3(3) of the Employee Retirement Income Security Act
of 1974 (“ERISA”) and each other material plan, arrangement, policy or agreement which is or was at any time during the last five years maintained, administered or contributed to by any Seller or any Affiliate (as defined
below in this Section B.19) of any Seller and covers any current or former employee or member of any Seller or any Affiliate of any Seller or under which any Seller or any Affiliate of any Seller has any liability. Copies of such plans,
arrangements, policies, or agreements or, if none, descriptions thereof (and, if applicable, related trust agreements) and all amendments thereto and written interpretations thereof have been furnished to Care for Kids together with, if applicable,
the three most recent annual reports (Form 5500) prepared in connection with any such plan. Such plans, arrangements, policies, or agreements or, if none, descriptions thereof are referred to collectively herein as the “Employee
Plans.” For purposes of this Section B.19 only, “Affiliate” of any person or entity means any other person or entity which, together with such person or entity, would be treated as a single employer under
Section 414 of the Code, or is an “affiliate,” whether or not incorporated, as defined in Section 407(d)(7) of ERISA, of such person or entity. The only Employee Plans which individually or collectively would constitute an
“employee pension benefit plan” as defined in Section 3(2) of ERISA (the “Pension Plans”) are identified as such on Schedule B.19. 
 (b) Each Employee Plan has been maintained, funded, and administered in accordance with its terms, ERISA, the Code, and any applicable state law. Except
as described in Schedule B.19, no Employee Plan constitutes a “multiemployer plan,” as defined in Section 3(37) of ERISA, or a “defined benefit plan,” as defined in Section 3(35) and subject to Title IV of ERISA.
No Employee Plan provides post-retirement medical or other welfare-type benefits or is maintained in connection with any trust described in Section 501(c)(9) of the Code. Full payment has been made of all amounts which Tooth Doctor or any
Affiliate of any Seller is required to have paid as contributions to or benefits under any Employee Plan, and there are no unfunded obligations under any Employee Plan that have not been disclosed to Care for Kids in writing prior to the Closing.
Nothing done or omitted to be done and no transaction or holding of any asset under or in connection with any Employee Plan has made or will make any Seller or any Affiliate of any Seller liable for any tax pursuant to Section 4975 of the Code.
There is no pending or, to the best of each Owner’s knowledge, threatened litigation, arbitration, disputed 
  

 B-12 

 claim, adjudication, audit, examination or other proceeding (other than routine claims for benefits) with respect to any
Employee Plan. Each Employee Plan which is intended to be qualified under Section 401(a) of the Code is so qualified and has been so qualified during the period from its adoption to date and, except as set forth in Schedule B.19, has
received a favorable determination from the Internal Revenue Service that takes into account all recent changes in law. 
 (c) Except as set
forth in Schedule B.19, the execution of, and the consummation of the transactions contemplated by, this Agreement will not constitute a triggering event under any Employee Plan, whether or not legally enforceable, which (either alone or upon
the occurrence of any additional or subsequent event) will or may result in any payment (of severance pay or otherwise), acceleration, increase in vesting, or increase in benefits to any current or former participant in such Employee Plan or current
or former employee or manager of any Seller. 
 (d) Any reference to ERISA or the Code or any section thereof shall be construed to include
all amendments thereto and applicable regulations and administrative rulings thereunder. 
 B.20. Contracts. Schedule B.20-1
lists and briefly describes each contract, purchase order, agreement, lease, executory commitment, arrangement, and understanding (written or oral) to which any Seller is a party which (a) (i) involves payments or commitments in excess of
$10,000 (in the aggregate), (ii) extends beyond one year, unless cancelable by such Seller on 60 or fewer days’ notice without any liability, penalty, or premium, or (iii) is otherwise material to the condition, operations, assets,
business, or prospects of any Seller, (b) is with any current or former member, manager, officer, employee, agent, or independent contractor of any Seller or any person related by blood or marriage to any such person, or any person or entity
controlling, controlled by, or under common control with any such person, and not terminable at will by such Seller, (c) provides for the future purchase by any Seller of any materials, equipment, services, or supplies and either
(i) continues for a period of more than 12 months (including periods covered by any option to renew by either party), (ii) provides for a price in excess of current market prices, or (iii) is in excess of normal operating requirements
over its remaining term, or (d) involves any of the following: (i) any borrowings or guarantees; (ii) any contracts containing covenants purporting to limit the freedom of any Seller to compete in any line of business or provide any
of its services in any geographic area; (iii) any obligation or commitment which limits the freedom of any Seller to sell, lease, license, or otherwise provide its services or to solicit or hire employees; (iv) any contract or agreement
the performance of which can reasonably be expected to result in a loss to any Seller; or (v) any obligation or commitment providing for indemnification or responsibility for the obligations or losses of any person. All of such contracts,
agreements, leases, commitments, and other arrangements and understandings are valid and binding, in full force and effect and enforceable in accordance with their respective provisions. 
 Schedule B.20-2 lists and briefly describes each contract, agreement, arrangement, and understanding (written or oral) to which any Seller is a
party, under which such Seller receives revenue, and which (1) involves payments or commitments to such Seller in excess of $10,000 (in the aggregate), including without limitation each Third-Party Payor Agreement pursuant to which any Seller
receives in excess of $10,000 per year, or (2) is otherwise material to the condition, operations, assets, or business of any Seller. 
  

 B-13 

 No Seller is in violation of or in default in respect of, nor has there occurred an event or condition
which, with the passage of time or giving of notice (or both), would constitute a default under, any contract, agreement, lease, commitment, arrangement, or understanding of the type described in the preceding two paragraphs of this section (each
such contract, agreement, lease, commitment, arrangement, or understanding, a “Material Agreement”). 
 Sellers have
delivered to Care for Kids a correct and complete copy of the fee schedule which is currently in effect under each Third-Party Payor Agreement. 
 Schedule B.20-3 contains a correct and complete list of all dentists employed or otherwise retained by each Seller. 
 Schedule B.20-4 sets forth an accurate and complete list of each Seller’s 10 largest third-party payors, in terms of revenue generation for such Seller for the nine-month period ended September 30, 2006 (the “Top
10 Third-Party Payors”). 
 Except as set forth in Schedule B.20-5, No Seller has received any notice from any Top 10
Third-Party Payor to the effect that such Top 10 Third-Party Payor intends to terminate its relationship or unilaterally modify any terms of that relationship, where applicable, with any Seller as a result of any transaction contemplated by this
Agreement or otherwise. 
 Except as set forth in Schedule B.20-6: (A) without limiting the generality of Section B.6, above,
consummation by Sellers of the Contribution and the other transactions contemplated by this Agreement neither requires nor will require the action, consent, or approval of any party to any Material Agreement which has not been taken or granted prior
to the Closing; (B) there are no unresolved disputes relating to any of the Material Agreements which, individually or in the aggregate, would result in a Material Adverse Effect on the Business; (C) none of the Material Agreements
contains any provision that would prevent any Seller or Care for Kids, after the Closing, from enjoying any material benefit under the Material Agreements; and (D) each of the Material Agreements was entered into by the applicable Seller at
“arms’-length” and on the basis of commercially reasonable terms. 
 B.21. Accounts Receivable. All accounts and notes
receivable that are reflected in the Financial Statements, the Interim Statements, or the Estimated Closing Balance Sheet (or the accounts receivable aging report delivered with the Estimated Closing Balance Sheet) represent valid obligations
arising from sales actually made or services actually performed by Sellers in the ordinary course of the operation of the Business consistent with past practice and are or will be collectible net of the respective reserves, if any, reflected in the
Financial Statements, the Interim Statements, or the Estimated Closing Balance Sheet, as applicable. Subject to any such reserves, all such receivables will be paid in full, without any set-off, within 90 days after the Closing Date. There is no
contest, claim, or right of set-off with an obligor of any such receivable relating to the amount or validity of such receivable. 
 Since
December 31, 2004, there have been no accounts receivable of any Seller converted to notes receivable or otherwise extended. 
  

 B-14 

 Schedule B.21 includes a list of all amounts payable to each Seller by any Affiliate (as defined
below in this paragraph) of such Seller (the “Related Party Receivables”) and all amounts payable by each Seller to any Affiliate of such Seller (the “Related Party Payables”), specifying the payor,
payee, and amount of each Related Party Receivable and Related Party Payable. For purposes of this Section B.21 only, an “Affiliate” of a Seller shall mean any shareholder, member, director, manager, employee, representative,
independent contractor, or other agent of such Seller, any person related by blood or marriage to any such person, or any person or entity which, directly or indirectly, controls, is controlled by, or is under common control with such Seller or any
such other person or entity. 
 B.22. No Conflict or Default. Except as set forth in Schedule B.22, neither the execution and
delivery of this Agreement by Sellers nor compliance by Sellers with the terms and provisions of this Agreement, including without limitation the consummation of the transactions contemplated by this Agreement, will: (a) violate in any manner
any Applicable Laws or Permits; (b) conflict with or result in the breach of any term, condition, or provision of the certificate or articles of incorporation or organization, bylaws, or other organizational documents of any Seller or of any
agreement, deed, contract, undertaking, mortgage, indenture, writ, order, decree, restriction, legal obligation, or instrument to which any Seller is a party or by which any Seller or any of its respective assets is or may be bound or affected;
(c) constitute a default (or an event which, with the giving of notice, the passage of time, or otherwise, would constitute a default) thereunder; (d) result in the creation or imposition of any lien, security interest, charge or
encumbrance, or restriction of any nature whatsoever with respect to any asset used in the Business; or (e) give to others any interest or rights, including rights of termination, acceleration, or cancellation, in or with respect to any asset
used in the Business. 
 B.23. Books of Account; Records. The general ledgers, corporate record books, and other records relating to
the Business, including without limitation the material assets, contracts, and outstanding legal obligations of Sellers, are, in all material respects, complete and correct, and have been maintained in accordance with good business practices, and
the matters contained therein are appropriate and accurately reflected in the Financial Statements, the Interim Statements, and the Estimated Closing Balance Sheet. 
 B.24. Compensation. Set forth in Schedule B.24-1 is an accurate and complete listing of the current compensation of all employees of each Seller whose total current salary and bonus exceeds $40,000
annually and any consultant, advisor, or independent contractor whose compensation exceeds $5,000 annually. Except as set forth in Schedule B. 24-1, there are no other forms of compensation paid to the employees or independent contractors of
any Seller listed thereon. Except as set forth in Schedule B.24-1, the provisions for wages and salaries accrued in the Financial Statements, the Interim Statements, and the Estimated Closing Balance Sheet are adequate for wages and salaries
and other compensation to Sellers’ employees, including without limitation vacation pay, sick pay, and accrued compensation to any employee, and all commissions and other fees payable to agents, salesmen, independent contractors, and
representatives of Sellers. Except as set forth in Schedule B.24-2, no Seller has become obligated, directly or indirectly, to any of its employees or independent contractors or any person related to such person by blood or marriage, except
for current liability for such compensation. Except as set forth in Schedule B.24-2, no shareholder or member of any Seller or any employee or independent contractor of any Seller or any person related to such person by blood or marriage

  

 B-15 

 holds any position or office with or has any material financial interest, direct or indirect, in any supplier, customer,
or account of, or other outside business which has material transactions with, any Seller. Except as set forth in Schedule B.24-3, no Seller has any agreement or understanding with any of its employees, representatives, or independent
contractors which would influence any such person not to become associated with Care for Kids from and after the Closing or from serving Care for Kids or the Business after the Closing in a capacity similar to the capacity served immediately prior
to the Closing. To the best of each Owner’s knowledge, other than as specifically contemplated by Section 3.4, above, none of the employees and independent contractors of any Seller has a present intention to leave the employ of or
terminate the relationship with such Seller or has taken any action indicative of leaving the employ of or terminating the relationship with such Seller as a result of the transactions contemplated by this Agreement. 
 B.25. Labor Relations. Except as set forth in Schedule B.25, no employee of any Seller is represented by any labor union or covered under
any collective bargaining agreement, and there is no unfair labor practice complaint against any Seller pending before the National Labor Relations Board. There is no labor strike, dispute, slowdown or stoppage, or any union organizing campaign,
actually pending or, to the best of each Owner’s knowledge, threatened against or involving any Seller. No labor grievance has been filed with any Seller; no arbitration proceeding which has had or may have such an effect has arisen out of or
under a collective bargaining or other labor agreement and is pending; and no claim therefor has been asserted. No collective bargaining or other labor agreement is currently being negotiated by any Seller, and no union or collective bargaining unit
represents any Seller’s employees. No Seller has experienced any work stoppage or other material labor difficulty during the past five years. 
 B.26. Suppliers and Third-Party Payors. Except as set forth in Schedule B.26, no supplier of products or services to the Business has indicated that it shall stop, or decrease the rate of, or substantially increase its fees
for, supplying products or services to the Business either prior to, or following the consummation of, any of the transactions contemplated by this Agreement. Schedule B.26 sets forth (a) a list of each third-party payor who has
terminated its relationship with any Seller since December 31, 2004, or has notified any Seller since December 31, 2004, that it intends to terminate its relationship with Such Seller, and (b) the gross receipts received from each
such third-party payor for the 9-month period ending on September 30, 2006. Except as set forth in Schedule B.26, no Seller has suffered the loss of a relationship with any third-party payor that alone or in the aggregate comprises more
than 1% of calendar 2004 or calendar 2005 combined actual revenues of the Business as shown in the Financial Statements or 1% of calendar 2006 combined actual revenues of the Business as shown in the Interim Statements, and Owner does not know of
any third-party payor that has indicated that it is considering discontinuing to use, or plans to discontinue using, such Seller as its provider of dental services as a result of any of the transactions contemplated by this Agreement. 
 B.27. Medicare and Medicaid. Sellers and the dentists and dental care professionals employed or retained by Sellers are providers of dental
services through Medicare, Medicaid, or other governmental health care reimbursement programs, including without limitation AHCCCS (collectively, the “Governmental Programs”). Sellers and such dentists or other dental care
professionals have received and expect to receive reimbursement under such Governmental Programs. No Seller nor any employee of any Seller nor, to the best of each Owner’s 
  

 B-16 

 knowledge, any independent contractor or other agent of any Seller has violated any law, statute, rule, regulation, or
order under or relating to any Governmental Program, including without limitation those relating to fraud and abuse (the “Governmental Reimbursement Laws”). 
 B.28. Disciplinary Actions. Except as set forth in Schedule B.28, during the three-year period ending on the Closing Date, there have been
no disciplinary or other similar actions, proceedings, or investigations taken by the Arizona state dental board or other governmental or accrediting board, agency, or authority against or with respect to any Seller, any employee of any Seller, or,
to the best of each Owner’s knowledge, independent contractor of any Seller. 
 B.29. Complete Disclosure. No representation or
warranty by Sellers in this Agreement or the Schedules referred to in this Exhibit B contains any untrue statement of a material fact or omits a material fact necessary to make the statements contained herein or therein not misleading. 

B.30. Credit Balances. The total of all Credit Balances is not greater than $590,000. 
  

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 Exhibit C 
 Additional Covenants; Conditions; and Terms 
 1. Additional Covenants of Sellers and Owners.
Sellers and Owners hereby jointly and severally agree as follows: 
 (a) Conduct of Business. Except as otherwise expressly
contemplated by this Agreement, from the date of this Agreement until the Closing Date (the “Pre-Closing Period”): (i) no Seller or Owner shall take or permit to be taken any action or do or permit to be done anything in
the conduct of the Business that would be contrary to or in breach of any of the provisions of this Agreement or which would cause any representations and warranties of Sellers or Owners contained in this Agreement to be or become untrue in any
material respect; (ii) Sellers and Owners shall conduct the Business in the ordinary course substantially in accordance with past practices; and (iii) Sellers and Owners shall use all reasonable efforts to preserve Sellers’ business
organization intact, keep available to Care for Kids the present services of Sellers’ employees and independent contractors, and preserve for Care for Kids the goodwill of and all agreements with third parties with whom business relationships
exist. Without limiting the generality of the foregoing, during the Pre-Closing Period, except as otherwise expressly contemplated by this Agreement or with the prior written consent of Care for Kids, no Seller shall: 
 (i) Adopt or propose any change in its certificate of incorporation, articles of organization, operating agreement or other organizational document;

 (ii) Redeem, purchase, or otherwise acquire any shares of its capital stock or membership interests; grant any person or entity any right
to acquire any shares of its capital stock or membership interests; issue, deliver, sell, or agree to issue, deliver, or sell, any additional shares of its capital stock, membership interests, or any other securities; or enter into any agreement or
arrangement with respect to the sale or voting of its shares of capital stock; 
 (iii) Merge or consolidate with any other person or entity
or acquire a material amount of assets or any other person or entity; 
 (iv) Sell, lease, license, pledge, encumber, or otherwise dispose
of any assets or property other than in the ordinary course of business consistent with past practices; 
 (v) Incur, create, assume, or
otherwise become liable for any indebtedness other than indebtedness incurred in the ordinary course of business consistent with past practices; 
 (vi) Enter into or modify any employment, severance, termination, or similar agreement or arrangement with, or grant any bonuses, salary increases, severance or termination pay to, any officer, director, consultants, or employee;

  

 C-1 

 (vii) Adopt, amend or terminate any employee benefit plan, or increase, amend, or terminate any benefits
to officers, directors, consultants, or employees; 
 (viii) Modify in any material way or terminate any of the contracts listed or required
in Exhibit B, except in the ordinary course of business consistent with past practices; 
 (ix) Settle any claims, litigation, or actions,
whether now pending or hereafter made or brought, unless such settlement does not and could not have a Material Adverse Effect on any Seller; 
 (x) Engage in any transaction, or enter into any agreement, contract, lease, or other arrangement or understanding, with any Affiliate of any Seller or Owner, except for any transactions agreed to in writing by Care for Kids; or 

(xi) Agree or commit to do any of the foregoing. 
 (b) Exclusive Rights. No Seller, nor any Owner, nor any of their respective Affiliates or representatives shall, directly or indirectly, solicit (including without limitation by way of furnishing or making
available any non-public information concerning the business, properties or assets of any Seller) or engage in negotiations or discussions with, disclose any of the terms of this Agreement to, accept any offer from, furnish any information to, or
otherwise cooperate, assist or participate with any person or organization (other than Care for Kids and its representatives) regarding any Acquisition Proposal (as defined below), except that any person or entity making any Acquisition Proposal may
be informed of the restrictions contained in this sentence. Sellers and Owners shall notify Care for Kids promptly by telephone, and thereafter promptly confirm in writing, if any such information is requested from, or any Acquisition Proposal is
received by, any Seller or Owner. For purposes of this Agreement, “Acquisition Proposal” shall mean any offer or proposal received by any Seller or Owner prior to the Closing regarding the acquisition by purchase,
acquisition, lease, or otherwise of any capital stock, membership interest, or other interest in any Seller, any of the business of any Seller, or any material assets, customer relationships or other operations of any Seller. 
 (c) Access to Records. During the Pre-Closing Period, Sellers and Owners shall: (i) make or cause to be made available to Care for Kids and
its representatives, attorneys, accountants and agents, for examination, inspection, and review, the assets and property of Sellers and all books, contracts, agreements, commitments, records and documents of every kind relating to the Business, and
shall permit Care for Kids and its representatives, attorneys, accountants and agents to have access to the same at all reasonable times, including without limitation access to all tax returns filed and in preparation and all audit and other work
papers of Sellers’ accountants and all reports to management and related responses; (ii) permit representatives of Care for Kids to interview suppliers and personnel of Sellers; and (iii) cooperate in all ways reasonably requested by
Care for Kids in connection with the preparation of the audited financial statements of Sellers, if deemed necessary by ADPI. 
 (d)
Notice of Certain Events. Sellers and Owners shall promptly notify Care for Kids of each of the following which occurs during the Pre-Closing Period: 
 (i) Any notice or other communication from any person or entity alleging that the consent of such person or entity is or may be required in connection with any of the transactions contemplated by this Agreement;

  

 C-2 

 (ii) Any notice or other communication from any governmental or regulatory agency or authority in
connection with the transactions contemplated by this Agreement; 
 (iii) Any actions, suits, claims, investigations or proceedings
commenced or, to the best of any Seller’s or any Owner’s knowledge, threatened against, relating to, involving, or otherwise affecting the Business which, if in existence on the date of this Agreement would have been required to be
disclosed by Seller or Owner pursuant to Section B.18 of Exhibit B or which relate to the consummation of any of the transactions contemplated by this Agreement; and 
 (iv) Any circumstances or events which, if in existence on the date of this Agreement, would make any representation or warranty of Sellers or Owners incorrect or incomplete in any material respect. 
 2. Conditions to Obligations of Sellers and Owners. The obligations of Sellers and Owners to consummate the Contribution and the other
transactions contemplated by this Agreement shall be subject to the fulfillment of all of the following conditions unless waived by Sellers and Owners in writing: 
 (a) Representations and Warranties. The representations and warranties of Care for Kids set forth in Exhibit A to this Agreement shall be true and correct in all material respects as of the date of this
Agreement and as of the Closing Date as though made at and as of the Closing Date. 
 (b) Performance of Agreement. Care for Kids
shall have performed and observed in all material respects all obligations and conditions to be performed or observed by it under this Agreement or at and as of the Closing Date, specifically including the closing deliveries specified in
Section 3.3 of this Agreement. 
 (c) Certificate. Care for Kids shall have furnished Owners and Sellers with a certificate dated
the Closing Date signed by a duly authorized representative to the effect that the conditions set forth in Section 2(a) and (b) of this Exhibit C have been satisfied. 
 3. Conditions to Obligations of Care for Kids. The obligations of Care for Kids to consummate the transactions contemplated by this Agreement
shall be subject to the fulfillment of all of the following conditions unless waived by Care for Kids in writing: 
 (a) Representations
and Warranties. The representations and warranties of Sellers and Owners set forth in Exhibit B to this Agreement shall be true, correct, and complete as of the date of this Agreement and as of the Closing Date as though made at and as of
the Closing. 
  

 C-3 

 (b) Performance of Agreement. Sellers and Owners shall have performed and observed all
obligations and conditions to be performed or observed by them, respectively, under this Agreement at or prior to the Closing, specifically including the closing deliveries specified in Section 3.2(d) of this Agreement. 
 (c) Closing Certificate. Sellers and Owners shall have furnished Care for Kids with a certificate, dated the Closing Date and signed by
Sellers and Owners to the effect that the conditions set forth in Sections 3(a) and (b) of this Exhibit C have been satisfied. 
 (d)
New Employment Agreements. Entrance into the New Employment Agreements by the employees under those agreements. 
 (e)
Professional Personnel – Consent to Assignment. The professional personnel employed or otherwise retained by Sellers shall have signed documents consenting to the assignment of their current employment agreements to Arizona
Subsidiary. 
 (f) Third Party Payor Agreements. Consents to the assignment of the Third Party Payor Agreements listed on Schedule
1.1(j) shall have been received by Care for Kids, to its satisfaction, and Care for Kids has, to its satisfaction, concluded any and all due diligence with respect to the relationship between Sellers and the Top 10 Third Party Payors, it being
understood by the Parties that Care for Kids has entered into this Agreement based upon representations that the relationships with the Top 10 Third-Party Payors will continue following consummation of the transactions contemplated by this
Agreement. 
 (g) Investor Questionnaires. All Investor Questionnaires shall have been received by Care for Kids. 
 (h) Material Adverse Change. No material adverse change having occurred with respect to any Seller’s financial condition, operations,
prospects, assets, or business, and no information regarding Sellers’ financial condition, operations, prospects, assets, or business is disclosed to Care for Kids which is materially different from the information provided by Sellers as of the
date of this Agreement. 
 4. Termination. This Agreement may be terminated and cancelled at any time prior to the
Closing by Care for Kids: (a) if (i) any of the representations or warranties of Sellers or Owners contained in this Agreement (including the disclosure schedules related to the representations and warranties) shall prove to be inaccurate
in any material respect, or any obligation or condition to be performed or observed by Sellers or Owners under this Agreement has not been performed or observed at or prior to the time specified in this Agreement, and (ii) such inaccuracy or
failure shall not have been cured within three business days after receipt by Sellers or Owners, as applicable, of written notice of such occurrence from Care for Kids; (b) if any permanent injunction or other order of a court or other
competent authority preventing consummation of any of the transactions contemplated by this Agreement shall have become final and non-appealable; (c) in the event a Material Adverse Effect shall have occurred; or (d) if the Closing has not
occurred by December 15, 2006. 
  

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 This Agreement may be terminated and cancelled at any time prior to the Closing by a Majority-in-Interest
(as defined below) of Owners if the Closing has not occurred by December 15, 2006. For purposes of this section, “Majority-in-Interest” shall mean greater than 50% of the total Units (as defined in the Operating
Agreement) of Care for Kids to be issued to the Owners in Care for Kids as contemplated in Section 1.4(c) of this Agreement. 
 5.
Extension; Waiver. At any time prior to the Closing, Care for Kids may (but shall not be obligated to), to the extent legally allowed: (a) extend the time for the Sellers’ or Owners’ performance of any of their respective
obligations; (b) waive any inaccuracies in the representations and warranties contained in this Agreement or in any document delivered pursuant hereto; or (c) waive compliance with any of the agreements or conditions contained in this
Agreement. Any agreement on the part of Care for Kids to any such extension or waiver shall be valid only if set forth in a written instrument signed by Care for Kids. 
  

 C-5

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