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AMENDMENT NO. 1
TO
RIGHTS AGREEMENT
THIS AMENDMENT NO. 1 TO RIGHTS AGREEMENT (this "Amendment No. 1") is
entered into as of December 18, 1998, between CyberCash, Inc. a Delaware
corporation (the "Company"), and BankBoston N.A. (the "Rights Agent").
WHEREAS, the Company and the Rights Agent entered into the Rights
Agreement, dated as of June 30, 1998 (the "Rights Agreement");
WHEREAS, the Company and the Rights Agent desire to amend the Rights
Agreement on the terms and conditions hereinafter set forth; and
WHEREAS, for purposes of this Amendment No. 1, capitalized terms not
otherwise defined herein shall have the respective meanings set forth in the
Rights Agreement, as amended by this Amendment No. 1.
NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereby agree as follows:
1. Certain Definitions. Section 1 of the Rights Agreement is
amended as follows: (A) deleting the text of paragraph (i) thereof and
replacing it with the phrase "Intentionally Omitted."; (B) deleting the phrase
"a majority of the Continuing Directors" in paragraph (j) thereof and replacing
it with the phrase "the Board prior to such time as any Person becomes an
Acquiring Person"; and (C) deleting the text of paragraph (o) thereof and
replacing it with the phrase "Intentionally Omitted.".
2. Form of Rights Certificates. Section 4(b) of the Rights
Agreement is amended by deleting the phrase "Continuing Directors" and
replacing it with the word "Board".
3. Exercise of Rights; Purchase Price; Expiration Date of Rights.
Section 7(e) of the Rights Agreement is amended by deleting the phrase
"Continuing Directors" and replacing it with the word "Board".
4. Adjustment of Purchase Price, Number and Kind of Shares or
Number of Rights.
(A) Section 11(a)(ii) of the Rights Agreement is amended by
deleting the phrase "a majority of the Outside Directors" and replacing it with
the phrase "two-thirds of the Board".
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(B) Section 11(a)(iii) of the Rights Agreement is amended by
deleting the parenthetical phrase "(acting by at least a majority of the
Continuing Directors)".
(C) Section 11(m) of the Rights Agreement is amended by deleting
the word "it" and replacing such word with the phrase "the Board".
5. Consolidation, Merger or Sale or Transfer of Assets or Earning
Power. Section 13(c)(i)(B) of the Rights Agreement is amended by inserting the
word "Securities" immediately before the word "Act".
6. Redemption. Section 23(a) of the Rights Agreement is amended as
follows: (A) deleting in the first sentence thereof the phrase "then there
must be Continuing Directors then in office and such authorization shall
require the concurrence of a majority of such Continuing Directors" and
replacing it with the phrase "then such authorization shall require the
concurrence of two-thirds of the Board"; and (B) deleting in the second
sentence thereof the parenthetical phrase "(with the concurrence of a majority
of the Continuing Directors)" and replacing it with the phrase ", by a vote of
two-thirds of the Board,".
7. Determinations and Actions by the Board, etc. Section 29 of the
Rights Agreement is amended by deleting the phrase "the Continuing Directors or
Outside Directors" each of the three times it appears therein and replacing it
in each such place with the phrase "two-thirds of the Board".
8. Exhibit C. Exhibit C to the Rights Agreement is amended as
follows: (A) with respect to the second paragraph following the capitalized
legend on the first page thereof, deleting the phrase "Continuing Directors (as
defined in the Rights Agreement)" and replacing it with the phrase "Board of
Directors"; and (B) with respect to the seventh paragraph following the
capitalized legend on the first page thereof, (i) deleting the phrase "a
majority of the Continuing Directors" and replacing it with the phrase
"two-thirds of the Board of Directors"; (ii) inserting the phrase "a two-thirds
vote of" between the phrases "reinstatement is approved by" and "the Company's
Board of Directors"; and (iii) deleting the parenthetical phrase "(with the
concurrence of a majority of the Continuing Directors)".
9. Benefits. Nothing in the Rights Agreement, as amended by this
Amendment No. 1, shall be construed to give to any Person other than the
Company, the Rights Agent and the registered holders of the Rights Certificates
(and, prior to the Distribution Date, the registered holders of the Common
Stock) any legal or equitable right, remedy or claim under the Rights
Agreement, as amended by this Amendment No. 1; but the Rights Agreement, as
amended by this Amendment No. 1, shall be for the sole and exclusive benefit of
the Company, the Rights Agent and the registered holders of the Rights
certificates (and, prior to the Distribution Date, registered holders of Common
Stock).
10. Descriptive Headings. Descriptive headings of the several
Sections of this Amendment No. 1 are inserted for convenience only and shall
not control or affect the meaning or construction of any of the provisions
hereof.
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11. Governing Law. This Amendment No. 1 shall be deemed to be a
contract made under the laws of the State of Delaware and for all purposes
shall be governed by and construed in accordance with the laws of such State.
12. Other Terms Unchanged. The Rights Agreement, as amended by
this Amendment No. 1, shall remain and continue in full force and effect and is
in all respects agreed to, ratified and confirmed hereby. Any reference to the
Rights Agreement after the date first set forth above shall be deemed to be a
reference to the Rights Agreement, as amended by this Amendment No. 1.
13. Counterparts. This Amendment No. 1 may be executed in any
number of counterparts. It shall not be necessary that the signature of or on
behalf of each party appears on each counterpart, but it shall be sufficient
that the signature of or on behalf of each party appears on one or more of the
counterparts. All counterparts shall collectively constitute a single
agreement. It shall not be necessary in any proof of this Amendment No. 1 to
produce or account for more than a number of counterparts containing the
respective signatures of or on behalf of all of the parties.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1
to be duly executed and attested, all as of the day and year first above
written.
Attest: CYBERCASH, INC.
By: /s/ Xxxxxxx X. Xxxxxx By: /s/ Xxxxxxx X. Xxxxxxxxx, Xx.
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Attest: BankBoston N.A.
By: /s/ Xxxx X. Xxxx By: /s/ Xxxxxxxxx Xxxxxxxx
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