FIRST AMENDMENT TO RIGHTS AGREEMENT
This First Amendment to Rights Agreement (this "Amendment") is between
Health Risk Management, Inc., a Minnesota corporation (the "Company") and
Norwest Bank Minnesota, N.A., a national banking association (the "Rights
Agent"), effective as of October 1, 1999.
A. The Company and the Rights Agent entered into a Rights Agreement,
dated as of April 4, 1997 (the "Rights Agreement"). Capitalized terms used and
not otherwise defined in this Amendment will have the meaning attributed to such
terms in the Rights Agreement.
B. Section 27 of the Rights Agreements provides that the Company may
amend the Rights Agreement upon the approval of at least a majority of the Board
of Directors of the Company (provided at the time of such approval by the Board
there are then in office not less than two Continuing Directors and such
approval is joined in by a majority of the Continuing Directors then in office)
and upon any such amendment, the Rights Agent shall amend the Rights Agreement
as the Company directs.
C. The Company desires, and hereby directs the Rights Agent, to amend
the Rights Agreement and the Rights Agent agrees to such amendment, on the terms
and conditions set forth in this Amendment.
Accordingly, the Company and the Rights Agent agree as follows:
1. Representation and Warranties. The Company represents and warrants to the
Rights Agent that:
(a) to the best knowledge of the Company, this Amendment
shall not materially adversely affect the interest of
the holders of the Rights Certificates; and
(b) this Amendment is authorized pursuant to the
requirements of Section 27 of the Rights Agreement,
having been approved by a majority of the Company's
Continuing Directors as evidenced by the officer's
certificate attached hereto as Exhibit A.
2. Continuing Directors. Section 1(g) of the Rights Agreement is amended by
adding the following language to the last sentence of Section 1(g):
; and (iii) in the event that any provision hereof that uses
or incorporates the term Continuing Directors is determined
under applicable law to render such provision, any other
provisions or the entire Rights Agreement void, voidable,
invalid or otherwise unenforceable, then all such references
to Continuing Directors in such provision shall be amended,
without further action of the parties hereto, to refer to the
entire Board of Directors of the Company.
3. No Other Changes. Except as specifically amended by this Amendment, all other
provisions of the Rights Agreement remain in full force and effect. This
Amendment shall not constitute or operate as a waiver of, or estoppel with
respect to, any provisions of the Rights Agreement by any party hereto.
4. Counterparts. This Amendment may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same agreement.
The Company and the Rights Agent have caused this Amendment to be duly
executed on their behalf by their respective duly authorized representatives as
of the date first written above.
HEALTH RISK MANAGEMENT, INC. NORWEST BANK MINNESOTA, N.A.
By: /s/ Xxxx XxXxxxx By: /s/ Xxxxxxx Xxxxxxxx
Xxxx X. XxXxxxx, M.D. Its: Corp. Officer
Its: Chief Executive Officer and
Chairman of the Board
OFFICER'S CERTIFICATE
The undersigned hereby certifies that the First Amendment to the Rights
Agreement between Health Risk Management, Inc. and Norwest Bank Minnesota, N.A.,
dated as of April 4, 1997 (the "Rights Agreement") to which this Officer's
Certificate is attached as Exhibit A, complies with the terms of Section 27 of
the Rights Agreement.
/s/ Xxxx XxXxxxx
Xxxx X. XxXxxxx, M.D.
Chief Executive Officer and
Chairman of the Board
