Document:

exv10w1

Exhibit 10.1

AMENDMENT NO. 1 TO

AMENDED AND RESTATED CREDIT AGREEMENT

     THIS AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AGREEMENT, dated as of September 30, 2008,
amends and supplements the Amended and Restated Credit Agreement dated as of June 9, 2008 (the
“Credit Agreement”) between ANCHOR BANCORP WISCONSIN INC., a Wisconsin corporation (the
“Borrower”), the financial institutions from time to time party thereto (individually a “Lender”
and collectively the “Lenders”) and U.S. BANK NATIONAL ASSOCIATION, a national banking association,
as administrative agent for the Lenders (in such capacity, the “Agent”).

RECITAL

     The parties hereto desire to amend the Credit Agreement as provided below.

AGREEMENTS

     In consideration of the promises and agreements set forth in the Credit Agreement, as amended
hereby, the Borrower and the Lenders agree as follows:

     1. Definitions and References. Capitalized terms not otherwise defined herein have
the meanings ascribed to them in the Credit Agreement. Upon the execution and delivery of this
Amendment No. 1 to Amended and Restated Credit Agreement (“Amendment No. 1”) by the Borrower and
the Lenders and the satisfaction of the conditions listed in Section 4 below, each reference to the
Credit Agreement contained in the Credit Agreement, the Pledge Agreement and any other document,
instrument or agreement relating thereto means the Credit Agreement as amended by this Amendment
No. 1.

     2. Amendments to Credit Agreement.

          (a) The following defined terms “Base Rate” and “Total Risk-Based Capital” are inserted in
proper alphabetical order in section 1.1 of the Credit Agreement:

     “Base Rate” means greater of (a) 5% per annum or (b) the prime rate of
interest announced by the Agent from time to time. The prime rate announced by the Agent
may or may not be the lowest interest rate charged by the Agent for loans to its customers.

     “Total Risk-Based Capital” shall have the meaning assigned to it by, and shall
be determined in accordance with, the regulations of the federal Regulatory Agencies.

 

 

          (b) The defined terms “Daily Reset LIBOR Rate Loan,” “Interest Differential,” “LIBOR Rate
Loan,” “Loan Period” and “Money Markets” in section 1.1 of the Credit Agreement are deleted.

          (c) The defined term “Adjusted Net Income” in section 1.1 of the Credit Agreement is amended
by adding the following proviso at the end of such defined term:

; provided, however, that in determining Adjusted Net Income, any noncash impairment
charges realized by the Borrower with respect to goodwill or with respect to its
investments in Baylake Corp., Federal National Mortgage Association Fannie Mae or the
Federal Home Loan Mortgage Corporation shall be disregarded

          (d) The defined term “Business Day” in section 1.1 of the Credit Agreement is amended to read
as follows:

     “Business Day” means any day (other than a Saturday or Sunday) on which
commercial banks are open for business in New York, New York and on which the Federal
Reserve Banks are not closed.

          (e) The defined term “Maturity Date” in section 1.1 of the Credit Agreement is amended by
replacing the date “September 30, 2008” with the date “December 31, 2009”.

          (f) Section 2.2(a) of the Credit Agreement is amended in its entirety to read as follows:

          (a) The Borrower shall request Loans by written notice, or by telephonic notice
confirmed in writing or confirmed by electronic mail, to the Agent not later than 11 a.m.,
Milwaukee time, on the requested Borrowing Date (which must be a Business Day). Each such
request by the Borrower must specify the amount of the requested Loan. The aggregate
principal amount of Loans made on each Borrowing Date shall be in a minimum amount of
$1,000,000. In the event of any inconsistency between the telephonic notice and the
written confirmation thereof, the telephonic notice shall control. Each request for Loans
shall be irrevocable and shall constitute a representation and warranty by the Borrower
that the borrowing conditions specified in sections 3.1(b)(ii) and 3.1(b)(iii) will be
satisfied on the specified Borrowing Date. The Agent will promptly notify the Lenders of
the requested Loan. On or before 2 p.m., Milwaukee time, on the specified Borrowing Date,
each Lender shall make available its Percentage of the requested Loan with the Agent in
immediately available funds. Upon fulfillment of the applicable borrowing conditions, the
Agent

2

 

shall deposit the Loans in the Borrower’s account maintained with the Agent or as the
Borrower may otherwise direct in writing.

          (g) Section 2.3(a) of the Credit Agreement is amended in its entirety to read as follows:

          (a) Interest Rate. The unpaid principal balance of the Loans outstanding from
time to time shall bear interest at an annual rate equal to (i) the Base Rate plus
1% during the period from September 30, 2008 until the date the Total Revolving Loan
Commitment is reduced to $60,000,000 and (ii) thereafter, the Base Rate; and such rate
shall change on each day on which the Base Rate changes. The Agent’s internal records of
applicable interest rates shall be determinative in the absence of manifest error.

          (h) Section 2.3(b) of the Credit Agreement is amended in its entirety to read as follows:

          (b) Interest Payments. Interest accrued on Loans is due on the last day of
each month, commencing September 30, 2008, and on the Maturity Date.

          (i) The first sentence of Section 2.3(d) of the Credit Agreement is amended by deleting the
phrase “the rate announced by the Agent from time to time as its prime rate” and replacing it with
the phrase “the rate otherwise in effect under Section 2.3(a)”.

          (j) Section 2.3(e) of the Credit Agreement is amended by deleting “360” and inserting
“365/366” in its place.

          (k) Section 2.4 of the Credit Agreement is deleted in its entirety and replaced with the
following: “[Reserved]”

          (l) Section 2.5 of the Credit Agreement is amended by deleting the amount “$70,000,000” and
replacing it with the phrase “the daily average Total Revolving Loan Commitment”.

          (m) Section 2.6(a) of the Credit Agreement is amended in its entirety to read as follows:

          (a) Mandatory. The Total Revolving Loan Commitment shall be automatically
reduced to (i) $60,000,000 on the earlier to occur of (A) the date of receipt by the
Borrower of the Net Proceeds of Additional Capital or (B) December 30, 2008, (ii)
$56,000,000 on March 31, 2009,

3

 

(iii) $54,000,000 on June 30, 2009 and (iv) $53,000,000 on September 30, 2009.

          (n) Section 2.8(b) of the Credit Agreement is amended in its entirety to read as follows:

          (b) Optional. The Borrower may repay Loans without premium or penalty at any
time. The principal amount of each optional prepayment shall be an integral multiple of
$100,000. The Borrower will give the Agent notice of any optional prepayment of the Notes
not later than 11 a.m., Milwaukee time, on the prepayment date. The amount of such
prepayment shall become due and payable by the Borrower on the specified prepayment date.”

          (o) Section 2.8(c) of the Credit Agreement is deleted in its entirety.

          (p) Section 2.10 of the Credit Agreement is amended to read as follows:

     2.10 Extension of Maturity Date. The Lenders agree to consider a request by
the Borrower to extend the Maturity Date in light of the Borrower’s financial condition and
performance and general market conditions existing at the time of any such request. Any
such extension of the Maturity Date shall be in the sole and absolute discretion of each
Lender.

          (q) The following subsections are added to section 4.11 of the Credit Agreement:

          (k) Within 10 days after the end of each calendar month, a report in form, detail and
substance acceptable to the Agent with respect to all Nonperforming Loan and all other
classified assets of the Subsidiary Bank.

          (l) Within 10 days of the effective date of Amendment No. 1, a then-current copy of
the registration statement relating to the issuance of equity interests in the Borrower
and, promptly after approval by the Securities and Exchange Commission, a copy of the final
registration statement and prospectus.

          (m) On the first and fifteenth day of each month, commencing October 1, 2008, a
progress report regarding the issuance of equity interests in the Borrower in form and
substance satisfactory to the Agent.

4

 

          (r) Subsections 4.15(b) and (c) of the Credit Agreement are amended in their entirety to read
as follows:

          (b) The ratio of Nonperforming Loans to Total Risk-Based Capital shall not exceed
0.50:1.0 as of March 31, 2009 or as of the last day of any fiscal quarter thereafter.

          (c) The Subsidiary Bank shall maintain Total Risk-Based Capital of not less than
10.75% as of the last day of each fiscal quarter, commencing December 31, 2008.

          (s) Section 4.16 of the Credit Agreement is amended to read as follows:

     4.16 Additional Capital. The Borrower agrees to diligently continue its
efforts to raise additional capital (a) a portion of which must be used by the Borrower to
prepay the Notes and (b) the remainder of which shall be either retained by the Borrower to
provide liquidity or invested in the Subsidiary Bank to increase the Subsidiary Bank’s
risk-based capital (which investment may be in any type of security which is included in
calculating the Subsidiary Bank’s Tier 1 and Tier 2 capital under the regulations of the
federal banking Regulatory Agencies).

          (t) Section 4.17 of the Credit Agreement is amended to read as follows:

     4.17 Dividends. The Borrower shall not pay cash dividends on its common stock
during any fiscal year, commencing with the fiscal year beginning January  , 2009, in an
aggregate amount exceeding 15% of the Adjusted Net Income of the Borrower and its
consolidated Subsidiaries, as determined for the period from the beginning of such fiscal
year to the date any such dividend is declared.

          (u) Section 4.19 of the Credit Agreement is created to read as follows:

     4.19 Subsidiary Bank Dividends. The Borrower shall (a) cause the Subsidiary
Bank to request and use its best efforts to obtain the consent of the Officer of Thrift
Supervision and each other Regulatory Agency to the payments of quarterly dividends by the
Subsidiary Bank to the Borrower of not less than 70% of the Subsidiary Bank’s earnings for
such quarter and (b) cause the Subsidiary Bank to declare and pay to the Borrower the
maximum amount of dividends allowed by the Regulatory Agencies.

5

 

     3. Existing Loans. All outstanding Loans under the Credit Agreement on the effective
date of this Amendment No. 1 shall automatically convert on such date to Loans bearing interest at
the rate set forth in Section 2.3(a) of the Credit Agreement, as amended herein. No breakage fee
or penalty shall be payable by the Borrower as a result of such conversion.

     4. Closing Conditions. This Amendment No. 1 shall become effective upon the execution
and delivery of this Amendment No. 1 by the Borrower, the Lenders and the Agent, and the receipt by
the Agent of the following

          (a) a certificate of status with respect to the Borrower issued by the Wisconsin Department of
Financial Institutions;

          (b) copies, certified to be accurate and complete by the Secretary or Assistant Secretary of
the Borrower, of a resolution of the Board of Directors or Executive Committee of the Borrower
authorizing the execution and delivery of this Amendment No. 1;

          (c) a certificate of the President or Vice President of the Borrower to the effect that the
representations and warranties of the Borrower set forth in the Credit Agreement and the other Loan
Documents are accurate and complete in all material respects and that no Default or Event of
Default exists;

          (d) a nonrefundable, fully earned amendment fee equal to 0.25% of the Revolving Loan
Commitment in effect as of the date of this Amendment No. 1 for each Lender; and

          (e) such other documents and instruments relating hereto as the Agent shall reasonably
request.

     5. Representations and Warranties; No Default.

          (a) The execution and delivery of this Amendment No. 1 has been duly authorized by all
necessary corporate action on the part of the Borrower and does not violate or result in a default
under the Borrower’s Articles of Incorporation or By-Laws, any applicable law or governmental
regulation or any material agreement to which the Borrower is a party or by which it is bound.

          (b) The representations and warranties of the Borrower in the Credit Agreement are true and
correct in all material respects and no default under Section 6.1 of the Credit Agreement exists.

     6. Governing Law. This Amendment No. 1 shall be governed by and construed in
accordance with the internal laws (without regard to the conflict of law provisions) of the State
of Wisconsin.

6

 

     7. Costs and Expenses. The Borrower agrees to pay to the Bank all costs and expenses
(including reasonable attorneys’ fees) paid or incurred by the Bank in connection with the
negotiation, execution and delivery of this Amendment No. 1.

     8. Full Force and Effect. The Credit Agreement, as amended by this Amendment No. 1,
remains in full force and effect.

     9. Reaffirmation of Pledge Agreement. The Borrower acknowledges and agrees that the
Pledge Agreement remains in full force and effect and continues to secure the obligations of the
Borrower under the Credit Agreement, as amended hereby, and reaffirms and ratifies its obligations
under the Pledge Agreement.

[remainder of page intentionally left blank; signature page follows]

7

 

     IN WITNESS WHEREOF, the undersigned have executed this Amendment No. 1 as of the date and year
first set forth above.

	 	 	 	 	 
	 	ANCHOR BANCORP WISCONSIN INC.

 	 
	 	BY  	 	 
	 	 	Its 	 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION,
as the Agent and a Lender

 	 
	 	BY  	 	 
	 	 	Its 	 	 
	 
	 	ASSOCIATED BANK, NATIONAL ASSOCIATION

 	 
	 	BY  	 	 
	 	 	Its 	 	 
	 
	 	LASALLE BANK NATIONAL ASSOCIATION

 	 
	 	BY  	 	 
	 	 	Its 	 	 
	 

Signature Page to
Amendment No. 1 to Amended and Restated Credit AgreementEX-4.1 Rights Agreement

Exhibit 4.1

RIGHTS AGREEMENT

dated as of

September 29, 2008

between

WOODBRIDGE HOLDINGS CORPORATION

and

AMERICAN STOCK TRANSFER & TRUST COMPANY

Rights Agent

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 
	 	 	 	 
	Section 1.
	 	Certain Definitions

	 	 	3	 
	Section 2.
	 	Appointment of Rights Agent

	 	 	8	 
	Section 3.
	 	Issuance of Rights Certificates

	 	 	9	 
	Section 4.
	 	Form of Rights Certificates

	 	 	10	 
	Section 5.
	 	Countersignature and Registration

	 	 	11	 
	Section 6.
	 	Transfer, Split-Up, Combination and Exchange of Rights
Certificates; Mutilated, Destroyed, Lost
or Stolen Rights Certificates

	 	 	11	 
	Section 7.
	 	Exercise of Rights; Purchase Price; Expiration Date of Rights

	 	 	12	 
	Section 8.
	 	Cancellation and Destruction of Rights Certificates

	 	 	13	 
	Section 9.
	 	Company Covenants Concerning Securities and Rights

	 	 	13	 
	Section 10.
	 	Record Date

	 	 	14	 
	Section 11.
	 	Adjustment of Purchase Price, Number and Kind of
Securities or Number
of Rights

	 	 	15	 
	Section 12.
	 	Certificate of Adjusted Purchase Price or Number of Shares

	 	 	22	 
	Section 13.
	 	Fractional Rights and Fractional Shares

	 	 	22	 
	Section 14.
	 	Rights of Action

	 	 	23	 
	Section 15.
	 	Agreement of Rights Holders

	 	 	24	 
	Section 16.
	 	Rights Certificate Holder Not Deemed a Stockholder

	 	 	24	 
	Section 17.
	 	Concerning the Rights Agent

	 	 	25	 
	Section 18.
	 	Merger, Consolidation or Change of Name of Rights Agent

	 	 	26	 
	Section 19.
	 	Duties of Rights Agent

	 	 	26	 
	Section 20.
	 	Change of Rights Agent

	 	 	28	 
	Section 21.
	 	Issuance of New Rights Certificates

	 	 	29	 
	Section 22.
	 	Redemption

	 	 	29	 
	Section 23.
	 	Exchange

	 	 	30	 
	Section 24.
	 	Notice of Certain Events

	 	 	31	 
	Section 25.
	 	Notices

	 	 	31	 
	Section 26.
	 	Supplements and Amendments

	 	 	32	 
	Section 27.
	 	Successors

	 	 	33	 
	Section 28.
	 	Determinations and Actions by the Board

	 	 	33	 
	Section 29.
	 	Benefits of this Agreement

	 	 	34	 

     i     

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 30.
	 	Severability

	 	 	34	 
	Section 31.
	 	Governing Law

	 	 	34	 
	Section 32.
	 	Counterparts

	 	 	34	 
	Section 33.
	 	Descriptive Headings; Interpretation

	 	 	34	 

EXHIBITS

	 	 	 
	Exhibit A:
	 	Form of Certificate of Designation of Series A Junior
Participating Preferred Stock

	 	 	 

	Exhibit B:
	 	Form of Rights Certificate

	 	 	 

	Exhibit C:
	 	Summary of Rights

     ii     

 

 

RIGHTS AGREEMENT

     RIGHTS AGREEMENT, dated as of September 29, 2008 (the “Agreement”), between Woodbridge
Holdings Corporation, a Florida corporation (the “Company”), and American Stock Transfer &
Trust Company (the “Rights Agent”).

W I T N E S S E T H

     WHEREAS, the Company has experienced and continues to experience operating losses and, under
the Internal Revenue Code of 1986, as amended (the “Code”), and rules promulgated by the Internal
Revenue Service, the Company may “carry forward” its net operating losses (“NOLs”) in certain
circumstances to offset future earnings, and thus reduce its federal income tax liability (subject
to certain requirements and restrictions);

     WHEREAS, if the Company experiences an “Ownership Change,” as defined in Section 382 of the
Code, its ability to use its NOLs could be substantially jeopardized or limited;

     WHEREAS, the Company believes that its NOLs are a substantial asset of the Company and that it
is in the best interests of the Company and its shareholders that the Company provide for the
protection of the Company’s NOLs on the terms and conditions set forth herein; and

     WHEREAS, on September 24, 2008, the Board of Directors of the Company (the “Board”)
authorized and declared a dividend distribution of one preferred share purchase right (a
“Right”) for each share of Class A Common Stock, par value $0.01 per share, of the Company
(the “Class A Common Stock”) and one Right for each share of Class B Common Stock, par
value $0.01 per share, of the Company (the “Class B Common Stock” and, together with the
Class A Common Stock, the “Common Stock”) outstanding at the Close of Business (as
hereinafter defined) on October 9, 2008 (the “Record Date”), each Right initially
representing the right to purchase one one-hundredth of a share of Preferred Stock (as hereinafter
defined) of the Company, upon the terms and subject to the conditions hereinafter set forth, and
further authorized and directed the issuance of one Right with respect to each share of Common
Stock that shall become outstanding after the Record Date but prior to the earlier of the
Distribution Date (as hereinafter defined) and the Expiration Date (as hereinafter defined).

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

     Section 1. Certain Definitions

     For purposes of this Agreement, the following terms shall have the meanings indicated:

          (a) “Acquiring Person” shall mean any Person (other than any Related Person or any
Exempt Person) that has become, in itself or, together with all Affiliates and Associates of such
Person, the Beneficial Owner of 5.0% or more of the shares of Class A Common Stock
then-outstanding; provided, however, that any Person who would otherwise qualify as an Acquiring
Person as of the Close of Business on the Record Date will not be deemed to be an Acquiring Person
for any purpose of this Agreement on and after such date unless and until such time as such Person
or Affiliates or Associates

3

 

of such Person acquires the beneficial ownership of one additional share of Class A Common
Stock; and provided, further, that a Person will not be deemed to have become an
Acquiring Person solely as a result of (i) a reduction in the number of shares of Class A Common
Stock outstanding, (ii) the exercise of any options, warrants, rights or similar interests
(including restricted stock) granted by the Company to its directors, officers and employees, (iii)
any unilateral grant of any security by the Company or (iv) an Exempt Transaction, unless and until
such time as such Person or Affiliates or Associates of such Person acquires the Beneficial
Ownership of one additional share of Class A Common Stock. The Board shall not make any
determination with respect to a potential Acquiring Person until five (5) Business Days after the
date on which all Board members first received notice of the change of beneficial ownership at
issue. Notwithstanding the foregoing, if the Board determines in good faith that a Person who would
otherwise be an Acquiring Person has become such inadvertently and such Person divests as promptly
as practicable a sufficient number of shares of Class A Common Stock so that such Person would no
longer be an Acquiring Person, then such Person shall not be deemed to be an Acquiring Person for
any purposes of this Agreement. In addition notwithstanding the provisions of this Section 1(a) or
anything in this Agreement to the contrary, the Board may, in its sole discretion, determine that
any Person shall not be deemed to be an Acquiring Person for any purposes of this Agreement.

          (b) “Affiliate” and “Associate” shall have the respective meanings ascribed to
such terms in Rule 12b-2 promulgated under the Exchange Act as in effect on the date of this
Agreement, and to the extent not included within the foregoing clause of this Section 1(b), shall
also include, with respect to any Person, any other Person (whether or not a Related Person or an
Exempt Person) whose shares of Class A Common Stock would be deemed constructively owned by such
first Person, owned by a single “entity” as defined in Section 1.382-3(a)(1) of the Treasury
Regulations or otherwise aggregated with shares owned by such first Person pursuant to the
provisions of the Code, or any successor provision or replacement provision, and the Treasury
Regulations thereunder; provided, however, that a Person shall not be deemed to be
the Affiliate or Associate of another Person solely because either or both Persons are or were
directors of the Company.

          (c) “Agreement” shall have the meaning set forth in the preamble of this Agreement.

          (d) “Authorized Officer” shall mean the Chief Executive Officer, President, any Vice
President, the Treasurer or the Secretary of the Company.

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

               (i) which such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has the right to acquire (whether such right is exercisable immediately or only after
the passage of time) pursuant to any agreement, arrangement or understanding (whether or not in
writing) or upon the exercise of conversion rights, exchange rights, warrants, options or other
rights (in each case, other than upon exercise or exchange of the Rights); provided,
however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own,
securities (including rights, options or warrants) which are convertible or exchangeable into Class
A Common Stock until such time as the convertible or exchangeable securities are exercised and
converted or exchanged into Class A Common Stock except to the extent the acquisition or transfer
of such rights, options or warrants would be treated as exercised on the date of its acquisition or
transfer under Section 1.382-4(d) of the Treasury

4

 

Regulations; and, provided, further, however, that a Person shall not
be deemed the Beneficial Owner of, or to beneficially own, securities tendered pursuant to a tender
or exchange offer made by such Person or any of such Person’s Affiliates or Associates until such
tendered securities are accepted for purchase or exchange;

               (ii) which such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has or shares the right to vote or dispose of, or has “beneficial ownership” of (as
defined under Rule 13d-3 promulgated under the Exchange Act), including pursuant to any agreement,
arrangement or understanding (whether or not in writing) if the effect of such agreement,
arrangement or understanding is to treat such Persons as an “entity” under Section 1.382-3(a)(1) of
the Treasury Regulations; or

               (iii) of which any other Person is the Beneficial Owner, if such Person or any of such
Person’s Affiliates or Associates has any agreement, arrangement or understanding (whether or not
in writing) with such other Person (or any of such other Person’s Affiliates or Associates) with
respect to acquiring, holding, voting or disposing of any securities of the Company if the effect
of such agreement, arrangement or understanding is to treat such Persons as an “entity” under
Section 1.382-3(a)(1) of the Treasury Regulations; provided, however, that a Person shall not be
deemed the Beneficial Owner of, or to beneficially own, any security (A) if such Person has the
right to vote such security pursuant to an agreement, arrangement or understanding (whether or not
in writing) which (1) arises solely from a revocable proxy 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 (B) if such beneficial ownership arises
solely as a result of such Person’s status as a “clearing agency” (as defined in Section 3(a)(23)
of the Exchange Act); provided further, however, that nothing in this Section 1(e)
shall cause a Person engaged in business as an underwriter of securities or member of a selling to
group to be the Beneficial Owner of, or to beneficially own, any securities acquired through such
Person’s participation in good faith in an underwriting syndicate until the expiration of forty
(40) calendar days after the date of such acquisition, or such later date as the Board may
determine in any specific case. Notwithstanding anything herein to the contrary, to the extent not
within the foregoing provisions of this Section 1(e), a Person shall be deemed the Beneficial Owner
of, and shall be deemed to beneficially own, securities which such Person would be deemed to
constructively own or which otherwise would be aggregated with shares owned by such pursuant to
Section 382 of the Code, or any successor provision or replacement provision and the Treasury
Regulations thereunder.

          (f) “Board” shall have the meaning set forth in the preamble of this Agreement.

          (g) “Business Day” shall mean any day other than a Saturday, Sunday or a day on which
banking institutions in the state in which the principal office of the Rights Agent is located are
authorized or obligated by law or executive order to close.

          (h) “Class A Common Stock” shall have the meaning set forth in the preamble of this
Agreement.

          (i) “Class B Common Stock” shall have the meaning set forth in the preamble of this
Agreement.

5

 

          (j) “Close of Business” on any given date shall mean 5:00 P.M., New York City time, on
such date; provided, however, that if such date is not a Business Day, it shall mean 5:00 P.M., New
York City time, on the next succeeding Business Day.

          (k) “Code” shall have the meaning set forth in the preamble of this Agreement.

          (l) “Common Stock” shall have the meaning set forth in the preamble of this Agreement.

          (m) “Company” shall have the meaning set forth in the preamble of this Agreement.

          (n) “Company’s Articles of Incorporation” shall mean the Amended and Restated Articles
of Incorporation of the Company, as amended.

          (o) “Current Per Share Market Price” shall have the meaning set forth in Section
11(d)(i) or Section 11(d)(ii) hereof, as applicable.

          (p) “Current Value” shall have the meaning set forth in Section 11(a)(iii) hereof.

          (q) “Distribution Date” shall mean the earliest of (i) the Close of Business on the
tenth Business Day after the Stock Acquisition Date or (ii) the Close of Business on the tenth
Business Day (or, unless the Distribution Date shall have previously occurred, such later date as
may be specified by the Board) after the commencement of a tender or exchange offer by any Person
(other than any Related Person or any Exempt Person), if upon the consummation thereof, such Person
would be the Beneficial Owner of 5.0% or more of the then-outstanding Class A Common Stock.

          (r) “Equivalent Preferred Stock” shall have the meaning set forth in Section 11(b)
hereof.

          (s) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

          (t) “Exchange Ratio” shall have the meaning set forth in Section 23(a) hereof.

          (u) “Exempt Person” shall mean (i) a Person whose Beneficial Ownership (together with
all Affiliates and Associates of such Person) of 5.0% or more of the then-outstanding Class A
Common Stock would not, as determined by the Board, in its sole discretion, jeopardize or limit the
availability to the Company of its Tax Benefits and (ii) any Person that beneficially owns, as of
the Record Date, 5.0% or more of the outstanding shares of Class A Common Stock; provided,
however, that, with respect to clause (ii) of this Section 1(u), any such Person shall only
be deemed to be an Exempt Person for so long as it beneficially owns no more than the amount of
Class A Common Stock it owned on the Record Date; and provided, further, that, with
respect to clauses (i) and (ii) of this paragraph, any Person shall cease to be an Exempt Person as
of the date that such Person ceases to beneficially own 5.0% or more of the shares of the
then-outstanding Class A Common Stock. Additionally, a Person shall cease to be an Exempt Person if
the Board, in its sole discretion, makes a contrary determination with respect to the effect of
such Person’s Beneficial Ownership (together with

6

 

all Affiliates and Associates of such Person) with respect to the availability to the Company
of its Tax Benefits.

          (v) “Exempt Transaction” shall mean any transaction that the Board determines, in its
sole discretion, is exempt, which determination shall be irrevocable.

          (w) “Expiration Date” shall mean the earliest of (i) September 29, 2018, (ii) the time
at which the Rights are redeemed as provided in Section 22 hereof, (iii) the time at which the
Rights are exchanged as provided in Section 23 hereof, (iv) the repeal of Section 382 of the Code
or any successor statute if the Board determines that this Agreement is no longer necessary for the
preservation of Tax Benefits and (v) the beginning of a taxable year of the Company to which the
Board determines that no Tax Benefits may be carried forward.

          (x) “Nasdaq” means The Nasdaq Stock Market.

          (y) “NOLs” shall have the meaning set forth in the preamble of this Agreement.

          (z) “Person” shall mean any individual, firm, corporation, partnership, limited
liability company, limited liability partnership, trust or other legal entity or any group of
persons making a “coordinated acquisition” of shares or otherwise treated as an entity within the
meaning of Section 1.382-3(a)(1) of the Treasury Regulations or otherwise, and includes any
successor (by merger or otherwise) of any such individual or entity.

          (aa) “Preferred Stock” shall mean shares of Series A Junior Participating Preferred
Stock, par value $0.01 per share, of the Company having the rights and preferences set forth in the
form of Certificate of Designation of Series A Junior Participating Preferred Stock attached hereto
as Exhibit A.

          (bb) “Purchase Price” shall mean initially $12.00 per one one-hundredth of a share of
Preferred Stock, subject to adjustment as provided in this Agreement.

          (cc) “Record Date” shall have the meaning set forth in the preamble of this Agreement.

          (dd) “Redemption Price” shall mean $0.0001 per Right, subject to adjustment by the
Company to reflect any stock split, stock dividend or similar transaction occurring after the date
hereof.

          (ee) “Related Person” shall mean (i) the Company, (ii) any Subsidiary of the Company
or (iii) any employee benefit or stock ownership plan of the Company or of any Subsidiary of the
Company or any entity holding shares of Common Stock for or pursuant to the terms of any such plan.

          (ff) “Rights” shall have the meaning set forth in the preamble of this Agreement.

          (gg) “Rights Agent” shall have the meaning set forth in the preamble of this
Agreement.

7

 

          (hh) “Rights Certificates” shall mean certificates evidencing the Rights, in
substantially the form attached hereto as Exhibit B.

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

          (jj) “Securities Act” shall mean Securities Act of 1933, as amended.

          (kk) “Spread” shall have the meaning set forth in Section 11(a)(iii) hereof.

          (ll) “Stock Acquisition Date” shall mean the first date of public announcement (which
for purposes of this definition shall include, without limitation, a report filed pursuant to
Section 13(d) of the Exchange Act) by the Company or an Acquiring Person that an Acquiring Person
has become such or such earlier date as a majority of the Board shall become aware of the existence
of an Acquiring Person.

          (mm) “Subsidiary” shall mean, with reference to any Person, any corporation or other
legal entity of which a majority of the voting power of the voting equity securities or equity
interests is owned, directly or indirectly, by such Person, or otherwise controlled by such Person.

          (nn) “Substitution Period” shall have the meaning set forth in Section 11(a)(iii)
hereof.

          (oo) “Summary of Rights” shall mean a copy of a summary of the terms of the Rights, in
substantially the form attached hereto as Exhibit C.

          (pp) “Tax Benefits” shall mean the net operating loss carry-overs, capital loss
carry-overs, general business credit carry-overs, alternative minimum tax credit carry-overs and
foreign tax credit carry-overs, as well as any “net unrealized built-in loss” within the meaning of
Section 382 of the Code, of the Company or any direct or indirect subsidiary thereof.

          (qq) “Trading Day” shall mean a day on which the principal national securities
exchange on which the shares of Class A Common Stock are listed or admitted to trading is open for
the transaction of business.

          (rr) “Treasury Regulations” shall mean final, temporary and proposed income tax
regulations promulgated under the Code, including any amendments thereto.

     Section 2. Appointment of Rights Agent

     The Company hereby appoints the Rights Agent to act as agent for the Company in accordance
with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment and
hereby certifies that it complies with the requirements of the New York Stock Exchange governing
transfer agents and registrars. The Company may from time to time appoint such co-rights agents as
it may deem necessary or desirable. The Rights Agent shall have no duty to supervise, and shall in
no event be liable for, the acts or omissions of any such co-rights agent. Prior to the appointment
of a co-rights agent, the specific duties and obligations of each such co-rights agents shall be
set forth in writing and delivered to

8

 

the Rights Agent and the proposed co-rights agent. Any actions which may be taken by the
Rights Agent pursuant to the terms of this Agreement may be taken by any such co-rights agent. To
the extent that any co-rights agent takes any action pursuant to this Agreement, such co-rights
agent shall be entitled to all of the rights and protections of, and subject to all of the
applicable duties and obligations imposed upon, the Rights Agent pursuant to the terms of this
Agreement.

     Section 3. Issuance of Rights Certificates

          (a) Until the Distribution Date, (i) the Rights will be evidenced (subject to the provisions
of Section 3(b) hereof) by the certificates representing shares of Common Stock of the Company (or,
in the case of uncertificated shares of Common Stock, by the book-entry account that evidences
record ownership of such shares) registered in the names of the holders thereof (which
certificates, if any, shall also be deemed to be Rights Certificates) and not by separate Rights
Certificates, and (ii) the right to receive Rights Certificates will be transferable only in
connection with the transfer of shares of Common Stock. As soon as practicable after the
Distribution Date, the Company will prepare and execute, the Rights Agent will countersign, and the
Company will send or cause to be sent (and the Rights Agent will, if requested and provided with
all necessary information, send) by first-class, insured, postage-prepaid mail, to each record
holder of shares of Common Stock as of the Close of Business on the Distribution Date, at the
address of such holder shown on the records of the Company, a Rights Certificate evidencing one
Right for each share of Common Stock so held. In the event that an adjustment in the number of
Rights per share of Common Stock has been made pursuant to Section 11(i) hereof, at the time of
distribution of the Rights Certificates, the Company shall make the necessary and appropriate
rounding adjustments (in accordance with Section 13 hereof) so that Rights Certificates
representing only whole numbers of Rights are distributed and cash is paid in lieu of any
fractional Rights. As of the Distribution Date, the Rights will be evidenced solely by such Rights
Certificates. The Company shall promptly notify the Rights Agent in writing upon the occurrence of
the Distribution Date and, if such notification is given orally, the Company shall confirm same in
writing on or prior to the Business Day next following. Until such notice is received by the Rights
Agent, the Rights Agent may presume conclusively for all purposes that the Distribution Date has
not occurred.

          (b) On the Record Date, or as soon as practicable thereafter, the Company will send a copy of
a Summary of Rights by first-class, postage-prepaid mail, to each record holder of shares of Common
Stock 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 shares of Common Stock outstanding as of
the Record Date, until the Distribution Date, the Rights will be evidenced by such certificates
registered in the names of the holders thereof together with a copy of the Summary of Rights
attached thereto. With respect to uncertificated shares of Common Stock outstanding as of the
Record Date, until the Distribution Date, the Rights will be evidenced by the book-entry account
that evidences record ownership of such shares in the names of the holders thereof together with a
copy of the Summary of Rights maintained by the Company. Until the Distribution Date (or the
Expiration Date, if earlier), the surrender for transfer of any certificate (or, in the case of
uncertificated shares of Common Stock, a transfer recorded in the book-entry accounts that evidence
record ownership of such shares) for shares of Common Stock outstanding on the Record Date, with or
without a copy of the Summary of Rights attached thereto, shall also constitute the transfer of the
Rights associated with the shares of Common Stock represented thereby.

9

 

          (c) Certificates for shares of Common Stock which become outstanding (including, without
limitation, reacquired shares of Common Stock referred to in the last sentence of this paragraph
(c)) after the Record Date but prior to the earlier of the Distribution Date and the Expiration
Date shall have impressed on, printed on, written on or otherwise affixed to them a legend in
substantially the following form:

This certificate also evidences and entitles the holder hereof to certain rights as
set forth in a Rights Agreement between Woodbridge Holdings Corporation and American
Stock Transfer & Trust Company, dated as of September 29, 2008, as it may be amended
or supplemented 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 Woodbridge Holdings Corporation. Under certain circumstances,
as set forth in the Agreement, such Rights (as defined in the Agreement) will be
evidenced by separate certificates and will no longer be evidenced by this
certificate. Woodbridge Holdings Corporation will mail to the holder of this
certificate a copy of the Agreement without charge after receipt of a written
request therefor. As set forth in the Agreement, Rights beneficially owned by any
Person (as defined in the Agreement) who becomes an Acquiring Person or any
Affiliate or Associate thereof (as such terms are defined in the Agreement) become
null and void.

With respect to such certificates containing the foregoing legend, the Rights associated with the
shares of Common Stock represented by such certificates shall, until the Distribution Date, be
evidenced by such certificates alone, and the surrender for transfer of any such certificate shall
also constitute the transfer of the Rights associated with the shares of Common Stock represented
thereby. In the event that the Company purchases or acquires any shares of Common Stock after the
Record Date but prior to the Distribution Date, any Rights associated with such shares of Common
Stock shall be deemed canceled and retired so that the Company shall not be entitled to exercise
any Rights associated with the shares of Common Stock which are no longer outstanding.

     Section 4. Form of Rights Certificates

     The Rights Certificates (and the form of election to purchase and the form of assignment to be
printed on the reverse thereof) shall each be substantially in the form attached hereto as
Exhibit B with such changes and 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 transaction reporting system on which the Rights may from time to time be
listed or quoted, or to conform to usage. Subject to the provisions of Sections 11 and 21 hereof,
the Rights Certificates, whenever distributed shall entitle the holders thereof to purchase such
number of one one-hundredths of a share of Preferred Stock as is set forth therein at the Purchase
Price; provided, however, that the Purchase Price, the number and kind of securities issuable upon
exercise of each Right and the number of Rights outstanding shall be subject to adjustment as
provided in this Agreement.

10

 

     Section 5. Countersignature and Registration

          (a) The Rights Certificates shall be executed on behalf of the Company by, and shall be
attested by, any Authorized Officer, in each case either manually or by facsimile signature, and
may have affixed thereto the Company’s seal or a facsimile thereof. The Rights Certificates shall
be countersigned by the Rights Agent, either manually or by facsimile signature, and shall not be
valid for any purpose unless so countersigned. In case any Authorized Officer who shall have signed
any of the Rights Certificates shall cease to be an Authorized Officer before countersignature by
the Rights Agent and issuance and delivery by the Company, such Rights Certificates, nevertheless,
may be countersigned by the Rights Agent and issued and delivered by the Company with the same
force and effect as though the person who signed such Rights Certificates had not ceased to be an
Authorized Officer; and any Rights Certificates may be signed on behalf of the Company by any
person who, at the actual date of the execution of such Rights Certificate, shall be an Authorized
Officer, although at the date of the execution of this Agreement any such person was not an
Authorized Officer.

          (b) Following the Distribution Date, upon receipt by the Rights Agent of notice of the
occurrence of the Distribution Date pursuant to Section 3 hereof, a shareholder list and all other
relevant information reasonably requested by the Rights Agent, the Rights Agent shall keep or cause
to be kept at its office or offices designated for such purposes (and at such other offices 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 any transaction reporting system on which
the Rights may from time to time be listed or quoted) books for registration and transfer of the
Rights Certificates issued hereunder. Such books shall show the names and addresses of the
respective holders of the Rights Certificates, the number of Rights evidenced on its face by each
of the Rights Certificates and the date of each of the Rights Certificates.

     Section 6. Transfer, Split-Up, Combination and Exchange of Rights Certificates; Mutilated,
Destroyed, Lost or Stolen Rights Certificates

          (a) Subject to the provisions of Section 7(d) and Section 13 hereof, at any time after the
Close of Business on the Distribution Date, and prior to the Expiration Date, any Rights
Certificate(s) (other than Rights Certificates representing Rights that may have been exchanged
pursuant to Section 23 hereof) representing exercisable Rights may be transferred, split up,
combined or exchanged for another Rights Certificate(s), entitling the registered holder to
purchase a like number of one one-hundredths of a share of Preferred Stock (or other securities, as
the case may be) as the Rights Certificate(s) surrendered then entitled such holder (or former
holder in the case of a transfer) to purchase. Any registered holder desiring to transfer, split
up, combine or exchange any such Rights Certificate(s) must make such request in writing delivered
to the Rights Agent, and must surrender the Rights Certificate(s) to be transferred, split up,
combined or exchanged, with the forms of assignment and certificate contained therein duly
executed, at the office or offices of the Rights Agent designated for such purpose. The Rights
Certificates are transferable only on the registry books of the Rights Agent. Neither the Rights
Agent nor the Company shall be obligated to take any action whatsoever with respect to the transfer
of any such surrendered Rights Certificate until the registered holder shall have (i) completed and
signed the certificate contained in the form of assignment on the reverse side of such Rights
Certificate, (ii) provided such additional evidence of the identity of the Beneficial Owner (or
former Beneficial Owner) and the Affiliates and Associates of such Beneficial Owner (or former

11

 

Beneficial Owner) as the Company or the Rights Agent shall reasonably request and (iii) paid a
sum sufficient to cover any tax or charge that may be imposed in connection with any transfer,
split up, combination or exchange of Rights Certificates. Thereupon, the Rights Agent shall
countersign and deliver to the Person entitled thereto a Rights Certificate or Rights Certificates,
as the case may be, as so requested registered in such name or names as may be designated by the
surrendering registered holder. The Rights Agent shall promptly forward any such sum collected by
it to the Company or to such Person or Persons as the Company shall specify by written notice. The
Rights Agent shall have no duty or obligation unless and until it is satisfied that all such taxes
and/or charges have been paid.

          (b) Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to
them of the loss, theft, destruction or mutilation of a Rights Certificate, and, in case of loss,
theft or destruction, of indemnity or security reasonably satisfactory to them, and reimbursement
to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon
surrender to the Rights Agent and cancellation of the Rights Certificate, if mutilated, the Company
shall execute and deliver a new Rights Certificate of like tenor to the Rights Agent and the Rights
Agent will countersign and deliver such new Rights Certificate to the registered holder in lieu of
the Rights Certificate so lost, stolen, destroyed or mutilated.

     Section 7. Exercise of Rights; Purchase Price; Expiration Date of Rights

          (a) Except as otherwise provided herein, the Rights shall become exercisable on the
Distribution Date and prior to the Expiration Date, and thereafter the registered holder of any
Rights Certificate may, subject to Section 11(a)(ii) and Section 23 hereof, exercise the Rights
evidenced thereby in whole or in part upon surrender of the Rights Certificate, with the form of
election to purchase on the reverse side thereof duly executed, to the Rights Agent at the office
or agency of the Rights Agent designated for such purpose, together with payment of the Purchase
Price (including any applicable tax or charge required to be paid by the holder of such Rights
Certificate) for each one one-hundredth of a share of Preferred Stock (or other securities, cash or
assets, as the case may be) as to which the Rights are exercised.

          (b) Upon receipt of a Rights Certificate representing exercisable Rights with the form of
election to purchase and the certificate properly completed and duly executed, accompanied by
payment of the Purchase Price for the shares to be purchased (and an amount equal to any applicable
tax or charge required to be paid) by certified check, cashier’s check, bank draft 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 shares of Preferred Stock (or make available, if the Rights Agent is
the transfer agent for such shares) certificates representing the total number of one
one-hundredths of a share of Preferred Stock to be purchased (and the Company hereby irrevocably
authorizes and directs its transfer agent to comply with all such requests) or (B) if the Company
shall have elected to deposit any shares of Preferred Stock issuable upon exercise of the Rights
hereunder with a depositary agent, requisition from the depositary agent depositary receipts
representing such number of one one-hundredths of a share of Preferred Stock as are to be purchased
(and the Company hereby irrevocably authorizes and directs such depositary agent to comply with all
such requests), (ii) after receipt of such certificates (or depositary receipts, as the case may
be) cause the same to be delivered to or upon the order of the registered holder of such Rights
Certificate, registered in such name or names as may be designated by such holder, (iii) when
appropriate, requisition from the Company or any transfer agent therefor certificates representing

12

 

the number of equivalent shares to be issued in lieu of the issuance of shares of Class A
Common Stock in accordance with the provisions of Section 11(a)(iii) hereof, (iv) when appropriate,
after receipt of such certificates, cause the same to be delivered to or upon the order of the
registered holder of such Rights Certificate, registered in such name or names as may be designated
by such holder, (v) when appropriate, requisition from the Company the amount of cash to be paid in
lieu of the issuance of fractional shares in accordance with the provisions of Section 13 hereof
and (vi) when appropriate, after receipt, deliver such cash to the registered holder of such Rights
Certificate.

          (c) In case the registered holder of any Rights Certificate shall exercise less than all the
Rights evidenced thereby, the Rights Agent shall prepare, execute and deliver a new Rights
Certificate evidencing Rights equivalent to the Rights remaining unexercised to the registered
holder of such Rights Certificate or to his duly authorized assigns, subject to the provisions of
Section 13 hereof.

          (d) 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 any purported transfer,
split up, combination or exchange of any Rights Certificate pursuant to Section 6 or exercise or
assignment of a Rights Certificate as set forth in this Section 7 unless the registered holder of
such Rights Certificate shall have (i) duly and properly completed and signed the certificate
following the form of assignment or the form of election to purchase, as applicable, set forth on
the reverse side of the Rights Certificate surrendered for such transfer, split up, combination,
exchange, exercise or assignment and (ii) provided such additional evidence of the identity of the
Beneficial Owner (or former Beneficial Owner) thereof and of the Rights evidenced thereby and
Affiliates and Associates thereof as the Company or the Rights Agent may reasonably request.

     Section 8. Cancellation and Destruction of Rights Certificates

     All Rights Certificates surrendered for the purpose of exercise, transfer, split-up,
combination or exchange shall, if surrendered to the Company or any of its agents, be delivered to
the Rights Agent for cancellation or in canceled form, or, if surrendered to the Rights Agent,
shall be canceled by it, and no Rights Certificates shall be issued in lieu thereof except as
expressly permitted by any of the provisions of this Agreement. The Company shall deliver to the
Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any
other Rights Certificate purchased or acquired by the Company other than upon the exercise thereof.
The Rights Agent shall deliver all canceled Rights Certificates to the Company, or shall, at the
written request of the Company, destroy such canceled Rights Certificates, and in such case shall
deliver a certificate of destruction thereof to the Company.

     Section 9. Company Covenants Concerning Securities and Rights

     The Company covenants and agrees that it will cause to be reserved and kept available out of
its authorized and unissued shares of Preferred Stock (and, following the occurrence of an event
which would establish the Distribution Date, out of its authorized and unissued shares of its Class
A Common Stock and/or other securities) the number of shares of Preferred Stock (and, following the
occurrence of an event which would establish the Distribution Date, Class A Common Stock and/or
other securities) that will be sufficient to permit the exercise in full of all outstanding Rights
in accordance with Section 7 hereof. The Company covenants and agrees that it will take all such
action as may be necessary to ensure that all shares of Preferred Stock delivered upon exercise of
Rights shall, at the time of delivery
of the certificates for such shares (subject to payment of the Purchase Price and all
applicable taxes and charges), be duly and validly authorized and issued and fully paid and
nonassessable shares.

13

 

     The Company further covenants and agrees that it will pay when due and payable any and all
taxes and charges which may be payable in respect of the issuance or delivery of the Rights
Certificates or of any shares of Preferred Stock upon the exercise of Rights. The Company shall
not, however, be required to pay any tax or charge which may be payable in respect of any transfer
or delivery of Rights Certificates to a Person other than, or the issuance or delivery of
certificates or depositary receipts for the shares of Preferred Stock in a name other than that of,
the registered holder of the Rights Certificate evidencing Rights surrendered for exercise or to
issue or to deliver any certificates or depositary receipts for shares of Preferred Stock upon the
exercise of any Rights until any such tax shall have been paid (any such tax or charge being
payable by the holder of such Rights Certificate at the time of surrender) or until it has been
established to the Company’s reasonable satisfaction that no such tax is due.

     If the Company determines that registration under the Securities Act is required, then the
Company shall use its reasonable best efforts to (i) file, as soon as practicable following the
first occurrence of an event which would establish the Distribution Date and the consideration to
be delivered by the Company upon exercise of the Rights has been determined in accordance with
Section 11(a) hereof, or as soon as is required by law following the Distribution Date, as the case
may be, a registration statement under the Securities Act with respect to the securities
purchasable upon exercise of the Rights on an appropriate form, (ii) cause such registration
statement to become effective as soon as practicable after such filing and (iii) cause such
registration statement to remain effective (with a prospectus at all times meeting the requirements
of the Securities Act) until the earlier of (A) the date as of which the Rights are no longer
exercisable for such securities and (B) the Expiration Date. The Company may temporarily suspend,
for a period not to exceed ninety (90) days after the date set forth in clause (i) of the first
sentence of this paragraph, the exercisability of the Rights in order to prepare and file such
registration statement and permit it to become effective. Upon any such suspension, the Company
shall issue a public announcement stating, and notify the Rights Agent, that the exercisability of
the Rights has been temporarily suspended, as well as a public announcement and notification to the
Rights Agent at such time as the suspension is no longer in effect. The Company will also take such
action as may be appropriate under, or to ensure compliance with, the securities or “blue sky” laws
of the various states in connection with the exercisability of the Rights. 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, or
an exemption therefrom shall be available, and until a registration statement has been declared
effective. The Company will notify the Rights Agent in writing of the jurisdictions in which Rights
shall not be exercisable pursuant to the preceding sentence.

     Section 10. Record Date

     Each Person in whose name any certificate for a number of one one-hundredths of a share of
Preferred Stock (or Class A Common Stock and/or other securities, as the case may be) is issued
upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of
such shares of Preferred Stock (or Class A Common Stock and/or other securities, as the case may
be) represented thereby on, and such certificate shall be dated as of, the date upon which the
Rights Certificate representing such Rights was duly surrendered and payment of the Purchase Price
(and all

14

 

applicable
taxes and charges) was made; provided, however, that if the date of such surrender
and payment is a date upon which the transfer books of the Company for shares of Preferred Stock
(or Class A Common Stock and/or other securities, as the case may be) are closed, such Person shall
be deemed to have become the record holder of such securities on, and such certificate shall be
dated as of, the next succeeding Business Day on which the transfer books of the Company are open.
Prior to the exercise of the Rights evidenced thereby, the holder of a Rights Certificate shall not
be entitled to any rights of a holder of any security of the Company with respect to shares for
which the Rights are or may be exercisable, including, without limitation, the right to vote, to
receive dividends or other distributions or to exercise any preemptive rights, and shall not be
entitled to receive any notice of any proceedings of the Company, except as provided herein.

     Section 11. Adjustment of Purchase Price, Number and Kind of Securities or Number of Rights

     The Purchase Price, the number of shares of Preferred Stock 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.

          (a) (i) In the event the Company shall at any time after the Record Date (A) declare a
dividend on the shares of Preferred Stock payable in shares of Preferred Stock, (B) subdivide the
outstanding shares of Preferred Stock, (C) combine the outstanding shares of Preferred Stock into a
smaller number of shares of Preferred Stock or (D) issue any shares of its capital stock in a
reclassification of the shares of Preferred Stock (including any such reclassification in
connection with a consolidation or merger in which the Company is the continuing or surviving
corporation), except as otherwise provided in this Section 11(a), 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, as the case may be, 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 transfer books of the Company for the shares of Preferred Stock were open, the holder
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.

               (ii) Subject to Section 23 of this Agreement and except as otherwise provided in this Section
11(a)(ii) and Section 11(a)(iii) below, in the event that any Person becomes an Acquiring Person,
each holder of a Right shall, after the later of the occurrence of such event and the effective
date of an appropriate registration statement pursuant to Section 9 hereof, have the right to
receive, upon exercise thereof at a price equal to the then-current Purchase Price, in accordance
with the terms of this Agreement and in lieu of shares of Preferred Stock, such number of shares of
Class A Common Stock (or at the option of the Company, such number of one one-hundredths of a share
of Preferred Stock) as shall equal the result obtained by (x) multiplying the then-current Purchase
Price by the number of one one-hundredths of a share of Preferred Stock for which a Right is then
exercisable and dividing that product by (y) 50% of the Current Per Share Market Price of the Class
A Common Stock (determined pursuant to Section 11(d) hereof) on the date of the occurrence of such
event; provided, however, that

15

 

the Purchase Price (as so adjusted) and the number of shares of Class A Common Stock so
receivable upon exercise of a Right shall thereafter be subject to further adjustment as
appropriate in accordance with Section 11(f) hereof.

               Notwithstanding anything in this Agreement to the contrary, however, from and after the time
(the “invalidation time”) when any Person first becomes an Acquiring Person, any Rights
that are beneficially owned by (A) any Acquiring Person (or any Affiliate or Associate of any
Acquiring Person), (B) a transferee of any Acquiring Person (or any such Affiliate or Associate)
who becomes a transferee after the invalidation time or (C) a transferee of any Acquiring Person
(or any such Affiliate or Associate) who became a transferee prior to or concurrently with the
invalidation time pursuant to either (1) a transfer from the Acquiring Person to holders of its
equity securities or to any Person with whom it has any continuing agreement, arrangement or
understanding, written or otherwise, regarding the transferred Rights or (2) a transfer that the
Board has determined is part of a plan, arrangement or understanding, written or otherwise, which
has the purpose or effect of avoiding the provisions of this paragraph, and subsequent transferees
of such Persons, shall be void without any further action, and any holder of such Rights shall
thereafter have no rights whatsoever with respect to such Rights under any provision of this
Agreement. The Company will use commercially reasonable efforts to ensure that the provisions of
this Section 11(a)(ii) are complied with, but shall have no liability to any holder of Rights
Certificates or other Person as a result of its failure to make any determinations with respect to
an Acquiring Person or its Affiliates, Associates or transferees hereunder. From and after the
invalidation time, no Right Certificates shall be issued pursuant to Section 3 or Section 6 hereof
that represents Rights that are or have become void pursuant to the provisions of this paragraph,
and any Right Certificates delivered to the Rights Agent that represents Rights that are or have
become void pursuant to the provisions of this paragraph shall be canceled.

               (iii) The Company may at its option substitute for a share of Class A Common Stock issuable
upon the exercise of Rights in accordance with Section 11(a)(ii) above such number or fractions of
shares of Preferred Stock having an aggregate current market value equal to the Current Per Share
Market Price of a share of Class A Common Stock. In the event that there shall be an insufficient
number of shares of Class A Common Stock authorized but unissued (and unreserved) to permit the
exercise in full of the Rights in accordance with Section 11(a)(ii), the Board shall, with respect
to such deficiency, to the extent permitted by applicable law and any material agreements then in
effect to which the Company is a party, (A) determine the excess of (x) the value of the shares of
Class A Common Stock issuable upon the exercise of a Right in accordance with Section 11(a)(ii)
(the “Current Value”) over (y) the then-current Purchase Price multiplied by the number of
one one-hundredths of shares of Preferred Stock for which a Right was exercisable immediately prior
to the time that the Acquiring Person became such (such excess, the “Spread”), and (B) with
respect to each Right (other than Rights which have become void pursuant to Section 11(a)(ii)),
make adequate provision to substitute for the shares of Class A Common Stock issuable in accordance
with Section 11(a)(ii) upon exercise of the Right and payment of the applicable Purchase Price, (1)
cash, (2) a reduction in such Purchase Price, (3) shares of Preferred Stock or other equity
securities of the Company (including, without limitation, shares or fractions of shares of
preferred stock which, by virtue of having dividend, voting and liquidation rights substantially
comparable to those of the shares of Class A Common Stock, are deemed in good faith by the Board to
have substantially the same value as the shares of Class A Common Stock (such shares or fractions
of shares of preferred stock are hereinafter referred to as “common stock equivalents”),
(4) debt securities of the Company, (5) other assets or (6) any combination of the

16

 

foregoing, having a value which, when added to the value of the shares of Class A Common Stock
actually issued upon exercise of such Right, shall have an aggregate value equal to the Current
Value (less the amount of any reduction in such Purchase Price), where such aggregate value has
been determined by the Board (upon the advice of a nationally recognized investment banking firm
selected by the Board in good faith); provided, however, that if the Company shall not make
adequate provision to deliver value pursuant to clause (B) above within thirty (30) days following
the date that the Acquiring Person became such (the “Section 11(a)(ii) Trigger Date”), then
the Company shall be obligated to deliver, to the extent permitted by applicable law and any
material agreements then in effect to which the Company is a party, upon the surrender for exercise
of a Right and without requiring payment of the Purchase Price, shares of Class A Common Stock (to
the extent available), and then, if necessary, such number or fractions of shares of Preferred
Stock (to the extent available) and then, if necessary, cash, which shares and/or cash have an
aggregate value equal to the Spread. If within the thirty (30) day period referred to above, the
Board shall determine in good faith that it is likely that sufficient additional shares of Class A
Common Stock could be authorized for issuance upon exercise in full of the Rights, then, if the
Board so elects, such thirty (30) day period may be extended to the extent necessary, but not more
than ninety (90) days after the Section 11(a)(ii) Trigger Date, in order that the Company may seek
shareholder approval for the authorization of such additional shares (such thirty (30) day period,
as it may be extended, is hereinafter called the “Substitution Period”). To the extent that
the Company determines that some action need be taken pursuant to the second and/or third sentence
of this Section 11(a)(iii), the Company (x) shall provide, subject to Section 11(a)(ii) hereof and
the last sentence of this Section 11(a)(iii) hereof, 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 second 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.

          (b) If the Company fixes a record date for the issuance of rights, options or warrants to all
holders of shares of Preferred Stock entitling them (for a period expiring within forty-five (45)
calendar days after such record date) to subscribe for or purchase shares of Preferred Stock (or
securities having equivalent rights, privileges and preferences as the shares of Preferred Stock
(for purposes of this Section 11(b), “Equivalent Preferred Stock”)) or securities
convertible into shares of Preferred Stock or Equivalent Preferred Stock at a price per share of
Preferred Stock or Equivalent Preferred Stock (or having a conversion price per share, if a
security convertible into shares of Preferred Stock or Equivalent Preferred Stock) less than the
Current Per Share Market Price of the shares of Preferred Stock (determined pursuant to Section
11(d)) 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 is the number of shares of Preferred Stock outstanding on such
record date plus the number of shares of Preferred Stock which the aggregate offering price of the
total number of shares of Preferred Stock and/or Equivalent Preferred Stock so to be offered
(and/or the aggregate initial conversion price of the convertible securities so to be offered)
would purchase at such Current Per Share Market Price and the denominator of which is the number of
shares of Preferred Stock outstanding on such record date plus the number of additional shares of
Preferred Stock and/or Equivalent Preferred Stock to be offered for subscription or purchase (or
into which the convertible securities so to be offered are initially
convertible); provided,
however, that in no event shall the

17

 

consideration to be paid upon the exercise of one Right be less than the aggregate par value
of the shares of capital stock issuable upon exercise of one Right. In the event such subscription
price is paid in a consideration part or all of which is in a form other than cash, the value of
such consideration shall be as determined in good faith by the Board, whose determination shall be
described in a written statement filed with the Rights Agent. Shares of Preferred Stock owned by or
held for the account of the Company shall not be deemed outstanding for the purpose of any such
computation. Such adjustment shall be made successively whenever such a record date is fixed; and
in the event that such rights, options or warrants are not so issued, the Purchase Price shall be
adjusted to be the Purchase Price which would then be in effect if such record date had not been
fixed.

          (c) If the Company fixes a record date for the making of a distribution to all holders of
shares of Preferred Stock (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 (other than a regular periodic cash dividend), assets, stock (other than a
dividend payable in shares of Preferred Stock) or subscription rights, options or warrants
(excluding those referred to in Section 11(b)), 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 is the Current Per Share Market Price of the
shares of Preferred Stock (as determined pursuant to Section 11(d)) on such record date or, if
earlier, the date on which shares of Preferred Stock begin to trade on an ex-dividend or when
issued basis for such distribution, less the fair market value (as determined in good faith by the
Board, whose determination shall be described in a written statement filed with the Rights Agent)
of the portion of the evidences of indebtedness, cash, assets or stock so to be distributed or of
such subscription rights, options or warrants applicable to one share of Preferred Stock, and the
denominator of which is such Current Per Share Market Price of the shares of Preferred Stock;
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 issuable 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.

          (d) (i) For the purpose of any computation hereunder, the “Current Per Share Market
Price” of any security (a “Security” for purposes of this Section 11(d)(i) only) on any
date shall be deemed to be the average of the daily closing prices per share of a share of such
Security for the 30 consecutive Trading Days immediately prior to, but not including, such date;
provided, however, that in the event that the Current Per Share Market Price of the Security is
determined during a period following the announcement by the issuer of such Security of (A) a
dividend or distribution on such Security payable in shares of such Security or securities
convertible into such shares (other than the Rights) or (B) any subdivision, combination or
reclassification of such Security, and prior to the expiration of thirty (30) Trading Days after,
but not including, 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 take into account ex-dividend trading or to
reflect the current per share 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

18

 

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
selected by the Board making a market in the Security. If the Security is not publicly held or not
so listed or traded, or is not the subject of available bid and asked quotes, the Current Per Share
Market Price of such Security shall mean the fair value per share as determined in good faith by
the Board, whose determination shall be described in a written statement filed with the Rights
Agent.

               (ii) For the purpose of any computation hereunder, the “Current Per Share Market
Price” of shares of the Preferred Stock shall be determined in accordance with the method set
forth above in Section 11(d)(i) other than the last sentence thereof. If the Current Per Share
Market Price of Preferred Stock cannot be determined in the manner provided above, it shall be
conclusively deemed to be an amount equal to the current per share market price of the shares of
Class A Common Stock multiplied by one hundred (as such number may be appropriately adjusted to
reflect events such as stock splits, stock dividends, recapitalizations or similar transactions
relating to the shares of Class A Common Stock occurring after the date of this Agreement). If
neither the Class A Common Stock nor the Preferred Stock are publicly held or so listed or traded,
or the subject of available bid and asked quotes, “Current Per Share Market Price” of the Preferred
Stock shall mean the fair value per share as determined in good faith by the Board, whose
determination shall be described in a written statement filed with the Rights Agent. For all
purposes of this Agreement, the Current Per Share Market Price of one one-hundredth of a share of
Preferred Stock will be equal to the Current Per Share Market Price of one share of Preferred Stock
divided by one hundred.

          (e) Except as set forth below, no adjustment in the Purchase Price shall be required unless
such adjustment would require an increase or decrease of at least 1%
in such price; provided,
however, that any adjustments which by reason of this Section 11(e) are not required to be made
shall be carried forward and taken into account in any subsequent adjustment. All calculations
under this Section 11 shall be made to the nearest cent or to the nearest one one-millionth of a
share of Preferred Stock or one one-hundredth of a share of Class A Common Stock or other security.
Notwithstanding the first sentence of this Section 11(e), any adjustment required by this Section
11 shall be made no later than the earlier of (i) three (3) years from the date of the transaction
which requires such adjustment and (ii) the Expiration Date.

          (f) If as a result of an adjustment made pursuant to Section 11(a), the holder of any Right
thereafter exercised becomes entitled to receive any securities of the Company other than shares of
Preferred Stock, thereafter the number and/or kind of such other securities so receivable upon
exercise of any Right (and/or the Purchase Price in respect thereof) shall be subject to adjustment
from time to time in a manner and on terms as nearly equivalent as practicable to the provisions
with respect to the shares of Preferred Stock (and the Purchase Price in respect thereof) contained
in this Section 11, and the provisions of Sections 7, 9, 10 and 13 with respect to the shares of
Preferred Stock (and the Purchase Price in respect thereof) shall apply on like terms to any such
other securities (and the Purchase Price in respect thereof).

19

 

          (g) All Rights originally issued by the Company subsequent to any adjustment made to the
Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the
number of one one-hundredths of a share of Preferred Stock issuable from time to time hereunder
upon exercise of the Rights, all subject to further adjustment as provided herein.

          (h) Unless the Company has exercised its election as provided in Section 11(i) below, upon
each adjustment of the Purchase Price pursuant to Section 11(b) or Section 11(c), each Right
outstanding immediately prior to the making of such adjustment shall evidence the right to
purchase, at the adjusted Purchase Price, that number of one one-hundredths of a share of Preferred
Stock (calculated to the nearest one one-millionth of a share of Preferred Stock) obtained by (i)
multiplying (x) the number of one one-hundredths of a share of Preferred Stock issuable upon
exercise of a Right immediately prior to such adjustment of the Purchase Price by (y) the Purchase
Price in effect immediately prior to such adjustment of the Purchase Price and (ii) dividing the
product so obtained by the Purchase Price in effect immediately after such adjustment of the
Purchase Price.

          (i) The Company may elect, on or after the date of any adjustment of the Purchase Price, to
adjust the number of Rights in substitution for any adjustment in the number of one one-hundredths
of a share of Preferred Stock 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-hundredths of a share of Preferred Stock for which a Right was exercisable immediately prior to
such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall
become that number of Rights (calculated to the nearest one hundred-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. The Company
shall also, as promptly as practicable, notify the Rights Agent in writing of same and give the
Rights Agent a copy of such announcement. Such record date may be the date on which the Purchase
Price is adjusted or any day thereafter, but if the Rights Certificates have been issued, such
record date shall be at least ten (10) calendar days later than the date of the public
announcement. If Rights Certificates have been issued, upon each adjustment of the number of Rights
pursuant to this Section 11(i), the Company shall, as promptly as practicable, cause to be
distributed to holders of record of Rights Certificates on such record date Rights Certificates
evidencing, subject to the provisions of Section 13, the additional Rights to which such holders
are entitled as a result of such adjustment, or, at the option of the Company, shall cause to be
distributed to such holders of record in substitution and replacement for the Rights Certificates
held by such holders prior to the date of adjustment, and upon surrender thereof if required by the
Company, new Rights Certificates evidencing all the Rights to which such holders are entitled after
such adjustment. Rights Certificates so to be distributed shall be issued, executed and
countersigned in the manner provided for herein (and may bear, at the option of the Company, the
adjusted Purchase Price), and shall be registered in the names of the holders of record of Rights
Certificates on the record date specified in the public announcement.

          (j) Without respect to any adjustment or change in the Purchase Price and/or the number and/or
kind of securities issuable upon the exercise of the Rights, the Rights Certificates
theretofore and thereafter issued may continue to express the Purchase Price and the number
and kind of securities which were expressed in the initial Rights Certificate issued hereunder.

20

 

          (k) Before taking any action that would cause an adjustment reducing the Purchase Price below
one one-hundredth of the then par value, if any, of the shares of Preferred Stock or below the then
par value, if any, of any other securities of the Company 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 shares of
Preferred Stock or such other securities, as the case may be, at such adjusted Purchase Price.

          (l) In any case in which this Section 11 otherwise requires that an adjustment in the Purchase
Price be made effective as of a record date for a specified event, the Company may elect to defer
until the occurrence of such event the issuance to the holder of any Right exercised after such
record date the number of one one-hundredths of a share of Preferred Stock or other securities of
the Company, if any, issuable upon such exercise over and above the number of one one-hundredths of
a share of Preferred Stock or other securities of the Company, if any, issuable upon such exercise
on the basis of the Purchase Price in effect prior to such
adjustment; provided, however, that the
Company delivers to such holder a due bill or other appropriate instrument evidencing such holder’s
right to receive such additional shares of Preferred Stock or other securities upon the occurrence
of the event requiring such adjustment.

          (m) Notwithstanding anything in this Agreement to the contrary, the Company shall be entitled
to make such reductions in the Purchase Price, in addition to those adjustments expressly required
by this Section 11, as and to the extent that in its good faith judgment the Board determines to be
necessary or advisable in order that any (i) consolidation or subdivision of the shares of
Preferred Stock, (ii) issuance wholly for cash of shares of Preferred Stock at less than the
Current Per Share Market Price therefor, (iii) issuance wholly for cash of shares of Preferred
Stock or securities which by their terms are convertible into or exchangeable for shares of
Preferred Stock, (iv) stock dividends or (v) issuance of rights, options or warrants referred to in
this Section 11, hereafter made by the Company to holders of its shares of Preferred Stock is not
taxable to such shareholders.

          (n) Notwithstanding anything in this Agreement to the contrary, in the event that the Company
at any time after the Record Date and prior to the Distribution Date (i) pays a dividend on the
outstanding shares of Class A Common Stock or Class B Common Stock payable in shares of Class A
Common Stock and/or Class B Common Stock, as applicable, (ii) subdivides the outstanding shares of
Class A Common Stock or Class B Common Stock, (iii) combines the outstanding shares of Class A
Common Stock or Class B Common Stock into a smaller number of shares or (iv) issues any shares of
its capital stock in a reclassification of the outstanding shares of Class A Common Stock or Class
B Common Stock (including any such reclassification in connection with a consolidation or merger in
which the Company is the continuing or surviving corporation), the number of Rights associated with
each share of Class A Common Stock and/or each share of Class B Common Stock then outstanding, or
issued or delivered thereafter but prior to the Distribution Date, shall be proportionately
adjusted so that the number of Rights thereafter associated with each share of Class A Common Stock
and/or each share of Class B Common Stock following any such event equals the result obtained by
multiplying the number of Rights associated with each share of Class A Common Stock or Class B
Common Stock, as applicable, immediately prior to such event by a fraction the numerator of which
is the total number of

21

 

shares of Class A Common Stock or Class B Common Stock, as applicable, outstanding immediately
prior to the occurrence of the event and the denominator of which is the total number of shares of
Class A Common Stock or Class B Common Stock, as the case may be, outstanding immediately following
the occurrence of such event. The adjustments provided for in this Section 11(n) shall be made
successively whenever such a dividend is paid or such a subdivision, combination or
reclassification is effected.

     Section 12. Certificate of Adjusted Purchase Price or Number of Shares

     Whenever an adjustment is made or any event affecting the Rights or their exercisability
(including, without limitation, an event which causes Rights to become null and void) occurs as
provided in Section 11, the Company shall promptly (a) prepare a certificate setting forth such
adjustment and a brief statement of the facts and calculations accounting for such adjustment or
describing such event, (b) file with the Rights Agent, and with each transfer agent for the shares
of Preferred Stock and the shares of Class A Common Stock, a copy of such certificate, and (c) mail
a brief summary thereof to each holder of a Rights Certificate. 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; provided, however, that the Rights Agent will not be entitled to such protection in
the event of actions or omissions performed by or on behalf of the Rights Agents in bad faith or
with willful misconduct.

     Section 13. Fractional Rights and Fractional Shares

          (a) The Company shall not be required to issue fractions of Rights or to distribute Rights
Certificates which evidence fractional Rights. In lieu of such fractional Rights, the Company shall
pay to the registered holders of the Rights Certificates with regard to which such fractional
Rights would otherwise be issuable, an amount in cash equal to the same fraction of the current
market value of one Right. For purposes of this Section 13(a), the current market value of one
Right is 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 Trading Day
shall be the last sale price, regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, in either case as reported in the
principal consolidated transaction reporting system with respect to securities listed or admitted
to trading on the New York Stock Exchange or, if the Rights are not listed or admitted to trading
on the New York Stock Exchange, as reported in the principal consolidated transaction reporting
system with respect to securities listed on the principal national securities exchange on which the
Rights are listed or admitted to trading or, if the Rights are not listed or admitted to trading on
any national securities exchange, the last quoted price or, if not so quoted, the average of the
high bid and low asked prices in the over-the-counter market, as reported by the 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 selected by the Board making a market in the Rights. If the Rights are not publicly held or
are not so listed or traded, or are not the subject of available bid and asked quotes, the current
market value of one Right shall mean the fair value thereof as determined in good faith by the
Board, whose determination shall be described in a written statement filed with the Rights Agent.

22

 

          (b) The Company shall not be required to issue fractions of shares of Preferred Stock (other
than fractions which are integral multiples of one one-hundredth of a share of Preferred Stock)
upon exercise of the Rights or to distribute certificates which evidence fractional shares of
Preferred Stock (other than fractions which are integral multiples of one one-hundredth of a share
of Preferred Stock). Fractions of Preferred Stock in integral multiples of one one-hundredth of a
share of Preferred Stock may, in the sole discretion 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 provides that the holders of such depositary receipts have all the
rights, privileges and preferences to which they are entitled as beneficial owners of the Preferred
Stock represented by such depositary receipts. In lieu of fractional shares of Preferred Stock that
are not integral multiples of one one-hundredth of a share of Preferred Stock, the Company may pay
to the registered holders of Rights Certificates at the time such Rights are exercised as herein
provided an amount in cash equal to the same fraction of the current market value of one
one-hundredth of a share of Preferred Stock. For purposes of this Section 13(b), the current market
value of one one-hundredth of a share of Preferred Stock shall be one one-hundredth of the closing
price of a share of Preferred Stock (as determined pursuant to Section 11(d)(ii) hereof) for the
Trading Day immediately prior to the date of such exercise; provided, however, that if the closing
price of the shares of the Preferred Stock cannot be so determined, the closing price of the shares
of the Preferred Stock for such Trading Day shall be conclusively deemed to be an amount equal to
the closing price of the Class A Common Stock for such Trading Day multiplied by one hundred (as
such number may be appropriately adjusted to reflect events such as stock splits, stock dividends,
recapitalizations or similar transactions occurring after the date of this Agreement).

          (c) Following the occurrence of any Person becoming an Acquiring Person, the Company shall not
be required to issue fractions of shares of Class A Common Stock upon exercise or exchange of the
Rights or to distribute certificates which evidence fractional shares of Class A Common Stock. In
lieu of issuing any such fractional securities, the Company may pay to any Person to whom or which
such fractional securities would otherwise be issuable an amount in cash equal to the same fraction
of the current market value of one such security. For purposes of this Section 13(c), the current
market value of one share of Class A Common Stock, or other security issuable upon the exercise or
exchange of Rights shall be the closing price thereof (as determined pursuant to Section 11(d)(i)
hereof) on the Trading Day immediately prior to the date of such exercise or exchange.

          (d) The holder of a Right, by the acceptance of the Rights, expressly waives such holder’s
right to receive any fractional Rights or any fractional shares upon exercise of a Right, except as
permitted by this Section 13.

     Section 14. Rights of Action

          (a) All rights of action in respect of this Agreement, excepting the rights of action given to
the Rights Agent hereunder, are vested in the respective registered holders of the Rights
Certificates (and, prior to the Distribution Date, the registered holders of shares of Common
Stock). Any registered holder of any Rights Certificate (or, prior to the Distribution Date, of the
shares of Common Stock), without the consent of the Rights Agent or of the holder of any other
Rights Certificate (or, prior to the Distribution Date, of the shares of Common Stock), may, in
such holder’s own behalf and for such holder’s own benefit, enforce, and may institute and maintain
any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, such
holder’s right to exercise the Rights evidenced

23

 

by such Rights Certificate in the manner provided in such Rights Certificate and in this
Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is
specifically acknowledged that the holders of Rights would not have an adequate remedy at law for
any breach of this Agreement and shall be entitled to specific performance of the obligations
hereunder and injunctive relief against actual or threatened violations of the obligations
hereunder of any Person subject to this Agreement.

          (b) Notwithstanding anything in this Agreement to the contrary, neither the Company nor the
Rights Agent shall have any liability to any holder of a Right or other Person as a result of its
inability to perform any of its obligations under this Agreement by reason of any preliminary or
permanent injunction or other order, judgment, decree or ruling (whether interlocutory or final)
issued by a court of competent jurisdiction or by a governmental regulatory, self-regulatory or
administrative agency or commission, or any statute, rule, regulation, or executive order
promulgated or enacted by any governmental authority, prohibiting or otherwise restraining
performance of such obligation; provided, however, that the Company shall use commercially
reasonable efforts to have any such injunction, order, judgment, decree or ruling lifted or
otherwise overturned as soon as possible.

     Section 15. Agreement of Rights Holders

     Every holder of a Right 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 shall be transferable only in connection with
the transfer of shares of Common Stock;

          (b) after the Distribution Date, the Rights Certificates are transferable only on the registry
books of the Rights Agent if surrendered at the principal office or offices of the Rights Agent
designated for such purposes, duly endorsed and accompanied by a properly executed instrument of
transfer with the appropriate forms and certificates fully executed;

          (c) the Company and the Rights Agent may deem and treat the person in whose name a Rights
Certificate (or, prior to the Distribution Date, the associated Class A Common Stock or Class B
Common Stock share certificate, if any) is registered as the absolute owner thereof and of the
Rights evidenced thereby (notwithstanding any notations of ownership or writing on the Rights
Certificates or the associated Class A Common Stock or Class B Common Stock share certificate, if
any, 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; and

          (d) such holder expressly waives any right to receive any fractional Rights and any fractional
securities upon exercise or exchange of a Right, except as otherwise provided in Section 13.

     Section 16. Rights Certificate Holder Not Deemed a Shareholder

     No holder of any Rights Certificate, by means of such possession, shall be entitled to vote,
receive dividends or be deemed for any purpose the holder of the number of one one-hundredths of a
share of Preferred Stock or any other security of the Company which may at any time be issuable on
the

24

 

exercise of the Rights represented thereby, nor shall anything contained herein or in any
Rights Certificate be construed to confer upon the holder of any Rights Certificate, by means of
such possession, any of the rights of a shareholder of the Company, including any right to vote on
any matter submitted to shareholders at any meeting thereof, including the election of directors,
or to give or withhold consent to any corporate action, or to receive notice of meetings or other
actions affecting shareholders (except as provided in Section 24 hereof), or to receive dividends
or subscription rights, or otherwise, until the Right or Rights evidenced by such Rights
Certificate have been exercised in accordance with the provisions of this Agreement.

     Section 17. Concerning the Rights Agent

          (a) The Company agrees to pay to the Rights Agent reasonable compensation for all services
rendered by it hereunder, and, from time to time, on demand of the Rights Agent, its reasonable
expenses and counsel fees and other disbursements incurred in the preparation, 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, damage, judgment, fine, penalty, claim, demand, cost or expense incurred without gross
negligence, bad faith or willful misconduct on the part of the Rights Agent (which gross
negligence, bad faith or willful misconduct must be determined by a final, non-appealable order,
judgment, decree or ruling of a court of competent jurisdiction), for anything done or omitted by
the Rights Agent in connection with the acceptance and administration of this Agreement and the
performance of its duties and responsibilities and the exercise of its rights hereunder, including
the costs and expenses of defending against any claim of liability arising therefrom, directly or
indirectly (except upon such a final, non-appealable order, judgment, decree or ruling of gross
negligence, bad faith or willful misconduct). The costs and expenses of enforcing this right of
indemnification will also be paid by the Company (subject to reimbursement in connection with a
determination by a final, non-appealable order, judgment, decree or ruling of gross negligence, bad
faith or willful misconduct). The provisions of this Section 17 shall survive the exercise,
exchange, redemption or expiration of the Rights, the resignation, replacement or removal of the
Rights Agent and the termination of this Agreement.

          (b) The Rights Agent may conclusively rely on, and will be protected and shall incur no
liability for or in respect of any action taken, suffered or omitted by it in connection with its
acceptance or administration of this Agreement and the exercise and performance of its duties and
responsibilities and the exercise of its rights hereunder in reliance upon, any Rights Certificate
or certificate evidencing shares of Preferred Stock, Class A Common Stock, Class B Common Stock or
other securities of the Company, or any instrument of assignment or transfer, power of attorney,
endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or other paper
or document believed by it to be genuine and to be signed, executed and, where necessary, verified
or acknowledged, by the proper Person or Persons, or otherwise upon the advice of counsel as set
forth in Section 19.

          (c) Notwithstanding anything in this Agreement to the contrary, in no event will the Rights
Agent be liable for special, indirect or consequential losses or damages of any kind whatsoever
(including, but not limited, to lost profits), even if the Rights Agent has been advised of the
likelihood of such loss or damage and regardless of the form of action.

25

 

     Section 18. Merger, Consolidation or Change of Name of Rights Agent

          (a) Any Person into which the Rights Agent or any successor Rights Agent may be merged or with
which it may be consolidated, or any Person resulting from any merger or consolidation to which the
Rights Agent or any successor Rights Agent is a party, will 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 Person would be eligible for appointment as a
successor Rights Agent under the provisions of Section 20 hereof. If at the time such successor
Rights Agent shall succeed to the agency created by this Agreement any of the Rights Certificates
shall have been countersigned but not delivered, any such successor Rights Agent may adopt the
countersignature of a predecessor Rights Agent and deliver such Rights Certificates so
countersigned; and if at that time any of the Rights Certificates shall not have been
countersigned, any successor Rights Agent may countersign such Rights Certificates either in the
name of the predecessor or in the name of the successor Rights Agent; and in all such cases such
Rights Certificates shall have the full force provided in the Rights Certificates and in this
Agreement.

          (b) If at any time the name of the Rights Agent changes and at such time any of the Rights
Certificates have been countersigned but not delivered, the Rights Agent may adopt the
countersignature under its prior name and deliver Rights Certificates so countersigned; and if at
that time any of the Rights Certificates have not been countersigned, the Rights Agent may
countersign such Rights Certificates either in its prior name or in its changed name; and in all
such cases such Rights Certificates shall have the full force provided in the Rights Certificates
and in this Agreement.

     Section 19. Duties of Rights Agent

     The Rights Agent undertakes to perform the duties and obligations expressly imposed by this
Agreement (and no implied duties) upon the following terms and conditions, by all of which the
Company and the holders of Rights Certificates, by their acceptance thereof, shall be bound:

          (a) The Rights Agent may consult with competent legal counsel (who may be legal counsel for
the Company), and the advice or opinion of such counsel shall be full and complete authorization
and protection to the Rights Agent, and the Rights Agent shall incur no liability for or in respect
of any action taken, suffered or omitted by it in accordance with the content of such advice or
opinion.

          (b) Whenever in the performance of its duties under this Agreement, the Rights Agent shall
deem it necessary or desirable that any fact or matter (including, without limitation, the identity
of any Acquiring Person and the determination of the Current Per Share Market Price) be proved or
established by the Company prior to taking, suffering or omitting to take 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 Authorized
Officer and delivered to the Rights Agent; and such certificate, pursuant to its terms, shall be
full and complete authorization and protection to the Rights Agent for any action taken or suffered
by it under the provisions of this Agreement in reliance upon such certificate.

26

 

          (c) The Rights Agent shall be liable hereunder only for its own gross negligence, bad faith or
willful misconduct (which gross negligence, bad faith or willful misconduct must be determined by a
final, non-appealable order, judgment, decree or ruling of a court of competent jurisdiction).

          (d) The Rights Agent shall not be liable for or by reason of any of the statements of fact or
recitals contained in this Agreement or in the Rights Certificates (except 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.

          (e) The Rights Agent will have no liability in respect of the validity of this Agreement or
the execution and delivery hereof (except the due execution and delivery hereof by the Rights
Agent) or in respect of the validity or execution of any Rights Certificate (except its
countersignature thereof); nor shall it be responsible for any breach by the Company of any
covenant contained in this Agreement or in any Rights Certificate; nor shall it be responsible for
any adjustment required under the provisions of Sections 11, 12, 22 or 23 hereof or responsible for
the manner, method or amount of any such adjustment or the ascertaining of the existence of facts
that would require any such adjustment (except with respect to the exercise of Rights evidenced by
Rights Certificates after actual notice of any such adjustment); nor shall it, by any act
hereunder, be deemed to make any representation or warranty as to the authorization or reservation
of any shares of Class A Common Stock or Preferred Stock to be issued pursuant to this Agreement or
any Rights Certificate or as to whether any shares of Class A Common Stock or Preferred Stock
shall, when so issued, be validly authorized and issued, fully paid and nonassessable.

          (f) The Company agrees that it shall perform, execute, acknowledge and deliver or cause to be
performed, executed, acknowledged and delivered all such further and other acts, instruments and
assurances as may reasonably be required by the Rights Agent for the carrying out or performing by
the Rights Agent of the provisions of this Agreement.

          (g) The Rights Agent is hereby authorized and directed to accept instructions with respect to
the performance of its duties and the exercise of the rights hereunder from any Authorized Officer
and to apply to all Authorized Officers for advice or instructions in connection with its duties,
and it shall not be liable for any action taken or suffered by it in good faith in accordance with
instructions of any such Authorized Officer or for any delay in acting while waiting for those
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 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 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 in such application (which date shall not be less than five (5)
Business Days after the date any Authorized Officer actually receives such application, unless any
such Authorized Officer shall have consented in writing to an earlier date) unless, prior to taking
any such action (or the effective date in the case of an omission), the Rights Agent shall have
received written instructions in response to such application specifying the action to be taken or
omitted.

27

 

          (h) The Rights Agent and any stockholder, director, officer or employee of the Rights Agent
may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily
interested in any transaction in which the Company may be interested, or contract with or lend
money to the Company or otherwise act as fully and freely as though it were not Rights Agent under
this Agreement. Nothing herein shall preclude the Rights Agent from acting in any other capacity
for the Company or for any other Person.

          (i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it
or perform any duty hereunder either itself (through its directors, officers or employees) 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 attorney or agent or for any loss to
the Company or any other Person resulting from any such act, default, neglect or misconduct,
provided reasonable care was exercised in the selection and continued employment thereof (each as
determined by a final, non-appealable order, judgment, decree or ruling of a court of competent
jurisdiction).

          (j) 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) or a transferee thereof, the
Rights Agent shall not take any further action with respect to such requested exercise or transfer
without first consulting with the Company.

          (k) No provision of this Agreement shall require the Rights Agent to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties hereunder
or in the exercise of its rights if there shall be reasonable grounds for believing that repayment
of such funds or adequate indemnification against such risk or liability is not reasonably assured
to it.

          (l) The Rights Agent shall not be deemed to have knowledge of any event of which it was
supposed to receive notice thereof hereunder, and the Rights Agent shall be fully protected and
shall incur no liability for failing to take any action in connection therewith, unless and until
it has received such notice in writing.

          (m) The provisions of this Section 19 shall survive the exercise, exchange, redemption or
expiration of the Rights, the resignation, replacement or removal of the Rights Agent and the
termination of this Agreement.

     Section 20. 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’ written notice mailed to the Company, and to each
transfer agent of the shares of Class A Common Stock and Preferred Stock known to the Rights Agent,
respectively, by registered or certified mail, and to the registered holders of the Rights
Certificates by first-class mail. The Company may remove the Rights Agent or any successor Rights
Agent upon thirty (30) days’ written notice mailed to the Rights Agent or successor Rights Agent,
as the case may be, and to each transfer agent of the shares of Class A Common Stock and Preferred
Stock, by registered or certified mail, and to the holders of the Rights Certificates by
first-class mail. If the Rights Agent shall

28

 

resign or be removed or shall otherwise become incapable of acting, the Company shall, in its
sole discretion, appoint a successor to the Rights Agent. If the Company shall fail to make such
appointment within a period of thirty (30) days after giving notice of such removal or after it has
been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights
Agent or by the holder of a Rights Certificate (who shall, with such notice, submit his Rights
Certificate for inspection by the Company), then any registered holder of any Rights Certificate
may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any
successor Rights Agent, whether appointed by the Company or by such a court, shall be (a) a legal
business entity organized and doing business under the laws of the United States or any state of
the United States, in good standing, which is authorized under such laws to exercise corporate
trust, stock transfer or shareholder services powers and which has at the time of its appointment
as Rights Agent a combined capital and surplus of at least $50,000,000 or (b) an affiliate of a
legal business entity described in clause (a) of this sentence. After appointment, the successor
Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had
been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent
shall deliver and transfer to the successor Rights Agent any property at the time held by it
hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the
purpose. Not later than the effective date of any such appointment, the Company shall file notice
thereof in writing with the predecessor Rights Agent and each transfer agent of the shares of Class
A Common Stock and Preferred Stock and mail a notice thereof in writing to the registered holders
of the Rights Certificates. Failure to give any notice provided for in this Section 20, 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 21. Issuance of New Rights Certificates

     Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the
Company may, at its option, issue new Rights Certificates evidencing Rights in such form as may be
approved by the Board to reflect any adjustment or change in the Purchase Price and the number or
kind or class of shares or other securities or property purchasable under the Rights Certificates
made in accordance with the provisions of this Agreement; provided, however, that (i) no such
Rights Certificate shall be issued if, and to the extent that, in its good faith judgment, the
Board determines that the issuance of such Rights Certificate could have a material adverse tax
consequence to the Company or to the Person to whom or which such Rights Certificate otherwise
would be issued, and (ii) no such Rights Certificate shall be issued if, and to the extent that,
appropriate adjustment shall otherwise have been made in lieu of the issuance thereof.

     Section 22. Redemption

          (a) The Board may, at any time prior to the Distribution Date, redeem all but not less than
all of the then-outstanding Rights at the Redemption Price. The redemption of the Rights may be
made effective at such time, on such basis and with such conditions as the Board, in its sole
discretion, may establish. The Company may, at its option, pay the Redemption Price in cash,
securities or any other form of consideration deemed appropriate by the Board.

29

 

          (b) Immediately upon the effectiveness of the redemption of the Rights, and without any
further action and without any notice, the right to exercise the Rights shall terminate and the
only
right thereafter of the holders of Rights shall be to receive the Redemption Price for each
Right so held without interest thereon. Promptly after the effectiveness of the redemption of the
Rights, the Company shall give public notice of such redemption to the Rights Agent and the holders
of the then outstanding Rights by mailing such notice to all such holders at each holder’s last
address as it appears upon the registry books of the Rights Agent or, prior to the Distribution
Date, on the registry books of the transfer agent for the shares of Class A Common Stock;
provided, however, that the failure to give, or any defect in, any such notice will
not affect the validity of the Redemption of the Rights. 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 shall be
made.

     Section 23. Exchange

          (a) The Board may, at its option, at any time after any Person first becomes an Acquiring
Person, exchange all or part of the then-outstanding and exercisable Rights (which shall not
include Rights that have not become effective or that have become void pursuant to the provisions
of Section 11(a)(ii) hereof) for shares of Class A Common Stock at an exchange ratio of one share
of Class A Common Stock (or one one-hundredth of a share of Preferred Stock) per Right,
appropriately adjusted to reflect any adjustment made pursuant to the terms of this Agreement (such
amount per Right being hereinafter referred to as the “Exchange Ratio”). The exchange of
the Rights by the Board may be made effective at such time, on such basis and with such conditions
as the Board, in its sole discretion, may establish.

          (b) Immediately upon the effectiveness of the action of the Board ordering the exchange of any
Rights pursuant to Section 23(a) and without any further action and without any notice, the right
to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights
shall be to receive that number of shares of Class A Common Stock equal to the number of such
Rights held by such holder multiplied by the Exchange Ratio. The Company shall promptly give public
notice of any such exchange; provided, however, that the failure to give, or any defect in, such
notice shall not affect the validity of such exchange. The Company shall promptly mail a notice of
any such exchange to all holders of the Rights so exchanged at their last addresses as they appear
upon the registry books of the Rights Agent. Any notice which is mailed in the manner herein
provided shall be deemed given, whether or not the holder receives the notice. Each such notice of
exchange will state the method by which the exchange of the shares of Class A Common Stock for
Rights shall be effected and, in the event of any partial exchange, the number of Rights which will
be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other
than Rights which have become void pursuant to the provisions of Section 11(a)(ii) hereof) held by
each holder of Rights.

          (c) The Company may at its option substitute and, in the event that there shall not be
sufficient shares of Class A Common Stock issued but not outstanding or authorized but unissued
(and unreserved) to permit an exchange of Rights as contemplated in accordance with this Section
23, the Company shall substitute to the extent of such insufficiency, for each share of Class A
Common Stock that would otherwise be issuable upon exchange of a Right, a number of shares of
Preferred Stock (or Equivalent Preferred Stock) or fraction thereof, such that the Current Per
Share Market Price of one share of Preferred Stock (or Equivalent Preferred Stock) multiplied by
such number or fraction is equal to the Current Per Share Market Price of Class A Common Stock as
of the date of such exchange.

30

 

     Section 24. Notice of Certain Events

          (a) If the Company proposes to (i) pay any dividend payable in stock of any class to the
holders of shares of Preferred Stock or to make any other distribution to the holders of shares of
Preferred Stock (other than a regular periodic cash dividend), (ii) offer to the holders of shares
of Preferred Stock rights, options, warrants or any similar instrument to subscribe for or to
purchase any additional shares of Preferred Stock or shares of stock of any class or any other
securities, rights or options, (iii) effect any reclassification of its Preferred Stock (other than
a reclassification involving only the subdivision of outstanding shares of Preferred Stock), (iv)
effect any consolidation or merger into or with any other Person, (v) effect the liquidation,
dissolution or winding up of the Company or (vi) declare or pay any dividend on the shares of Class
A Common Stock or Class B Common Stock payable in shares of Class A Common Stock or Class B Common
Stock, respectively, or to effect a subdivision, combination or reclassification of the Class A
Common Stock or Class B Common Stock, as the case may be, then, in each such case, the Company
shall give to the Rights Agent and, to the extent possible, to each holder of a Rights Certificate,
in accordance with Section 25 hereof, a notice of such proposed action, which shall specify the
record date for the purposes of such stock dividend, distribution or offering of rights, warrants,
options or any similar instrument or the date on which such reclassification, consolidation,
merger, sale, transfer, liquidation, dissolution, or winding up is to take place and the date of
participation therein by the holders of the shares of Preferred Stock, if any such date is to be
fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii)
above at least ten (10) days prior to the record date for determining holders of the shares of
Class A Common Stock, Class B Common Stock, and/or Preferred Stock for purposes of such action, and
in the case of any such other action covered by clause (i) or (ii) above at least ten (10) days
prior to the date of such proposed action or the date of participation therein by the holders of
the shares of Preferred Stock, whichever is the earlier.

          (b) As soon as practicable after a Stock Acquisition Date, if any, the Company shall give to
the Rights Agent and each holder of a Rights Certificate, to the extent feasible and in accordance
with Section 25 hereof, a notice of the occurrence of such event, which shall specify the event and
the consequences of the event to holders of Rights.

     Section 25. Notices

          (a) Notices or demands authorized by this Agreement to be given or made by the Rights Agent or
by the holder of any Rights Certificate to or on the Company shall be sufficiently given or made
(a) immediately, if made by personal delivery to the party to be notified, (b) on the fifth day
after it is sent by first-class mail, postage prepaid, (c) on the next Business Day after it is
sent by nationally recognized overnight courier or (d) upon confirmation, if it is transmitted by
facsimile combined with a phone call to the Company notifying it of such transmission, all
addressed (until another address is filed in writing by the Company with the Rights) as follows:

31

 

			
	                              	 	Woodbridge Holdings Corporation

2100 West Cypress Creek Road

Fort Lauderdale, FL 33309

Attention; Alan B. Levan, Chairman and Chief Executive Officer

Facsimile: (954) 940-5050

Phone: (954) 940-5020

With a copy to:

			
	                              	 	Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A.

150 West Flagler Street, Suite 2200

Miami, FL 33130

Attention: Alison W. Miller, Esq.

Facsimile: (305) 789-3395

Phone: (305) 789-3500

          (b) Subject to the provisions of Section 20, any notice or demand authorized by this Agreement
to be given or made by the Company or by the holder of any Rights Certificate to or on the Rights
Agent shall be sufficiently given or made (a) immediately, if made by personal delivery to the
party to be notified, (b) on the fifth day after it is sent by first-class mail, postage prepaid,
(c) on the next Business Day after it is sent by nationally recognized overnight courier or (d)
upon confirmation, if it is transmitted by facsimile combined with a phone call to the Rights Agent
notifying it of such transmission, all addressed (until another address is filed in writing by the
Rights Agent with the Company) as follows:

			
	                              	 	American Stock Transfer & Trust Company

59 Maiden Lane

New York, New York 10038

Attention: Felix Orihuela, Vice President and Relationship Manager

Facsimile: (718) 765-8719

Phone: (718) 921-8360

          (c) Notices or demands authorized by this Agreement to be given or made by the Company or the
Rights Agent to the holder of any Rights Certificate (or, prior to the Distribution Date,
registered holders of shares of Class A Common Stock or Class B Common Stock) shall be sufficiently
given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address
of such holder as shown on the registry books of the Company.

     Section 26. Supplements and Amendments

     Prior to the Distribution Date, 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, any such supplement or amendment to
be evidenced by a writing signed by the Company and the Rights Agent. From and after the time at
which the Rights cease to be redeemable pursuant to Section 22, the Company may and the Rights
Agent shall, if the Company so directs, supplement or amend this Agreement without the approval of
any holders of

32

 

Rights in order (i) to cure any ambiguity, (ii) to correct or supplement any provision
contained herein which may be defective or inconsistent with any other provision herein, (iii) to
shorten or lengthen any time period hereunder or (iv) to amend or supplement the provisions
hereunder in any manner which the Company may deem necessary or
desirable; provided, however, that
no such supplement or amendment shall adversely affect the interests of the holders of Rights
(other than an Acquiring Person or any Affiliate or Associate of an Acquiring Person), and no such
amendment may cause the Rights again to become redeemable or cause this Rights Agreement again to
become amendable other than in accordance with this sentence. Upon the delivery of a certificate
from an Authorized Officer 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.
Notwithstanding anything herein to the contrary, the Rights Agent shall not be obligated to enter
into any supplement or amendment that affects the Rights Agent’s own right, duties, obligations or
immunities under this Agreement.

     Section 27. Successors

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

     Section 28. Determinations and Actions by the Board

          (a) For all purposes of this Agreement, any calculation of the number of shares of any class
of the Company’s capital stock outstanding at any particular time, including for purposes of
determining the particular percentage of the outstanding shares of Class A Common Stock of which
any Person is the Beneficial Owner, shall be made in accordance with the last sentence of Rule
13d-3(d)(1)(i) under the Exchange Act or the provisions of Section 382 of the Code or any successor
or replacement provision.

          (b) The Board shall have the exclusive power and authority to administer this Agreement and to
exercise all rights and powers specifically granted to the Board or to the Company, or as may be
necessary or advisable in the administration of this Agreement, including, without limitation, the
right and power to (i) interpret the provisions of this Agreement and (ii) make all determinations
and calculations deemed necessary or advisable for the administration of this Agreement (including,
without limitation, a determination to redeem or not to redeem the Rights or amend this Agreement).

          (c) All such actions, calculations, interpretations and determinations (including, for
purposes of clause (y) below, all omissions with respect to the foregoing) which are done or made
by the Board in good faith shall (x) be final, conclusive and binding on the Company, the Rights
Agent, the holders of the Rights and all other parties and (y) not subject the Board, or any of the
directors on the Board, to any liability to any person, including, without limitation, the Rights
Agent and the holders of the Rights. Unless otherwise notified, the Rights Agent shall always be
entitled to assume that the Board acted in good faith, and the Rights Agent shall be fully
protected and shall incur no liability in reliance thereon.

33

 

     Section 29. Benefits of this Agreement

     Nothing in this Agreement shall be construed to give to any Person other than the Company, the
Rights Agent and the registered holders of the Rights Certificates (and, prior to the Distribution
Date, registered holders of shares of Class A Common Stock and Class B Common Stock) any legal or
equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and
exclusive benefit of the Company, the Rights Agent and the registered holders of the Rights
Certificates (and, prior to the Distribution Date, registered holders of shares of Class A Common
Stock and Class B Common Stock).

     Section 30. Severability

     If any term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated; provided, however, that nothing
contained in this Section 30 will affect the ability of the Company under the provisions of Section
26 to supplement or amend this Agreement to replace such invalid, void or unenforceable term,
provision, covenant or restriction with a legal, valid and enforceable term, provision, covenant or
restriction.

     Section 31. Governing Law

     This Agreement, each Right and each Rights Certificate issued hereunder shall be deemed to be
a contract made under the laws of the State of Florida and for all purposes shall be governed by
and construed in accordance with the laws of such state applicable to contracts made and to be
performed entirely within such state.

     Section 32. 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 33. Descriptive Headings; Interpretation

     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.

[SIGNATURE PAGE FOLLOWS]

34

 

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

	 	 	 	 	 
	 	WOODBRIDGE HOLDINGS CORPORATION

 	 
	 	/s/ Alan B. Levan
 	 
	 	Name:  	Alan B. Levan 	 
	 	Title:  	Chairman and Chief Executive Officer
	 
	 	

AMERICAN STOCK TRANSFER & TRUST COMPANY 	 
	 
	 	 	 
	 	                                 /s/ Felix Orihuela
 	 
	 	Name:  	Felix Orihuela 	 
	 	Title:  	Vice President and Relationship Manager 	 
	 

35

 

Exhibit A

CERTIFICATE OF DESIGNATION

OF

SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

OF

WOODBRIDGE HOLDINGS CORPORATION

(Pursuant to §607.0602 of the Florida Business Corporation Act)

     Woodbridge Holdings Corporation (the “Company”), a corporation organized and existing under
the Florida Business Corporation Act (the “FBCA”), hereby certifies that the following resolution
was adopted by the Board of Directors of the Company as required by §607.0602 of the FBCA at a
meeting duly called and held on September 24, 2008:

     RESOLVED, that pursuant to the authority granted to and vested in the Board of Directors of
the Company (the “Board of Directors” or the “Board”) in accordance with the provisions of the
Company’s Amended and Restated Articles of Incorporation, as amended (the “Articles of
Incorporation”), the Board of Directors hereby creates a series of preferred stock, par value $0.01
per share, of the Company (the “Preferred Stock”), and hereby states the designation and number of
shares, and fixes the relative rights, preferences, and limitations thereof as follows:

SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

     Section 1     Designation and Amount. The shares of such series will be designated as Series A
Junior Participating Preferred Stock (the “Series A Preferred”) and the number of shares
constituting the Series A Preferred is five hundred thousand (500,000). Such number of shares may
be increased or decreased by resolution of the Board;
provided, however, that no decrease will
reduce the number of shares of Series A Preferred 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
Company and convertible into Series A Preferred.

     Section 2     Dividends and Distributions.

          (a)     Subject to the rights of the holders of any shares of any series of Preferred Stock
ranking prior to the Series A Preferred with respect to dividends, the holders of shares of Series
A Preferred, in preference to the holders of the Company’s Class A Common Stock, par value $0.01
per share, and Class B Common Stock, par value $0.01 per share (collectively, the “Common Stock”),
and of any other stock ranking junior to the Series A Preferred (collectively, the “Junior Stock”),
will be entitled to receive, when, as and if declared by the Board out of funds legally available
for the purpose, dividends payable in cash (except as otherwise provided below) on such dates as
are from time to time established for the payment of dividends on the Common Stock (each such date
being referred to herein as a “Dividend Payment Date”), commencing on the first Dividend Payment
Date after the first issuance of a share or fraction of a share of Series A Preferred (the “First
Dividend Payment Date”), in an amount per share (rounded to the nearest cent) equal to, subject to
the provision for adjustment hereinafter set forth, the greater of (i) $1 and (ii) one hundred
(100) times the aggregate per share amount of all cash

A-1

 

dividends, and one hundred (100) times the aggregate per share amount (payable in kind) of all
non-cash dividends, other than a dividend payable in shares of Class A Common Stock or Class B
Common Stock, as the case may be, or a subdivision of the outstanding shares of Class A Common
Stock or Class B Common Stock, as the case may be (by reclassification or otherwise), declared on
the Class A Common Stock and/or Class B Common Stock since the immediately preceding Dividend
Payment Date or, with respect to the First Dividend Payment Date, since the first issuance of any
share or fraction of a share of Series A Preferred. In the event that the Company at any time (i)
declares a dividend on the outstanding shares of Common Stock payable in shares of Common Stock,
(ii) subdivides the outstanding shares of Common Stock, (iii) combines the outstanding shares of
Common Stock into a smaller number of shares or (iv) issues any shares of its capital stock in a
reclassification of the outstanding shares of Common Stock (including any such reclassification in
connection with a consolidation or merger in which the Company is the continuing or surviving
corporation), then, in each such case, the amount to which holders of shares of Series A Preferred
would otherwise be entitled immediately prior to such event will be correspondingly 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 outstanding immediately prior to such event.

          (b)     The Company will declare a dividend on the Series A Preferred as provided in paragraph (a)
of this Section 2 immediately after it declares a dividend on the Class A Common Stock and/or Class
B Common Stock (other than a dividend payable in shares of Common Stock). Each such dividend on the
Series A Preferred will be payable immediately prior to the time at which the related dividend on
the Class A Common Stock and/or Class B Common Stock is payable.

          (c)     Dividends will accrue, and be cumulative, on outstanding shares of Series A Preferred from
the Dividend Payment Date immediately preceding the date of issue of such shares, unless (i) the
date of issue of such shares is prior to the record date for the First Dividend Payment Date, in
which case dividends on such shares will accrue from the date of the first issuance of a share of
Series A Preferred or (ii) the date of issue is a Dividend Payment Date or is a date after the
record date for the determination of holders of shares of Series A Preferred entitled to receive a
dividend and before such Dividend Payment Date, in either of which events such dividends will
accrue, and be cumulative, from such Dividend Payment Date. Accrued but unpaid dividends will
cumulate from the applicable Dividend Payment Date but will not bear interest. Dividends paid on
the shares of Series A Preferred in an amount less than the total amount of such dividends at the
time accrued and payable on such shares will be allocated pro rata on a share-by-share basis among
all such shares at the time outstanding. The Board may fix a record date for the determination of
holders of shares of Series A Preferred entitled to receive payment of a dividend or distribution
declared thereon, which record date will be not more than sixty (60) calendar days prior to the
date fixed for the payment thereof.

     Section 3     Voting Rights. The holders of shares of Series A Preferred shall have the following
voting rights:

          (a)     Subject to the provision for adjustment hereinafter set forth and except as otherwise
provided in the Articles of Incorporation or as otherwise required by law, each share of Series A
Preferred shall entitle the holder thereof to one hundred (100) votes on all matters upon which the
holders of the Common Stock of the Company are entitled to vote. In the event the Company shall at

A-2

 

any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or
effect a subdivision or 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 A Preferred 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 outstanding immediately prior to such event.

          (b)     Except as otherwise provided herein, in the Articles 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, the holders of shares of Series A Preferred and the holders of shares of
Common Stock and any other capital stock of the Company having general voting rights shall vote
together as one class on all matters submitted to a vote of shareholders of the Company.

          (c)     Except as otherwise provided herein or as otherwise required by law, holders of Series A
Preferred 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     Restrictions.

          (a)     Whenever dividends or distributions payable on the Series A Preferred are in arrears,
thereafter and until all accrued and unpaid dividends and distributions, whether or not declared,
on shares of Series A Preferred outstanding have been paid in full, the Company will not:

     (i)     Declare or pay dividends, or make any other distributions, on any shares of
Junior Stock;

     (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 shares of Series A Preferred (such stock, the “Parity Stock”),
except dividends paid ratably on the shares of Series A Preferred 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, purchase or otherwise acquire for consideration shares of any
Junior Stock; provided, however, that the Company may at any time redeem, purchase or
otherwise acquire shares of any such Junior Stock in exchange for shares of any other
Junior Stock; or

     (iv)     Redeem, purchase or otherwise acquire for consideration any shares of
Series A Preferred, or any shares of Parity Stock, except in accordance with a
purchase offer made in writing or by publication (as determined by the Board) to all
holders of such shares upon such terms as the Board, after consideration of the
respective annual dividend rates and other relative rights and preferences of the
respective series and
classes, may determine in good faith will result in fair and equitable treatment
among the respective series or classes.

A-3

 

          (b)     The Company will not permit any majority-owned subsidiary of the Company to purchase or
otherwise acquire for consideration any shares of stock of the Company unless the Company could,
under paragraph (a) of this Section 4, purchase or otherwise acquire such shares at such time and
in such manner.

     Section 5     Reacquired Shares. Any shares of Series A Preferred purchased or otherwise acquired
by the Company in any manner whatsoever will be retired and canceled promptly after the acquisition
thereof. All such shares will 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 Articles 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. Upon any liquidation, dissolution or winding
up of the Company, no distribution will be made (a) to the holders of shares of Junior Stock
unless, prior thereto, the holders of shares of Series A Preferred have received an amount equal to
accrued and unpaid dividends and distributions thereon, whether or not declared, to the date of
such payment; provided, however, that the holders of shares of Series A Preferred will be entitled
to receive an aggregate amount per share, subject to the provision for adjustment hereinafter set
forth, equal to a minimum per share liquidation payment of $100 but will be entitled to an
aggregate per share liquidation payment of one hundred (100) times the payment made per share of
Common Stock or (b) to the holders of shares of Parity Stock, except distributions made ratably on
the shares of Series A Preferred 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 Company at any time (i) declares a dividend on the outstanding shares of Common
Stock payable in shares of Common Stock, (ii) subdivides the outstanding shares of Common Stock,
(iii) combines the outstanding shares of Common Stock into a smaller number of shares or (iv)
issues any shares of its capital stock in a reclassification of the outstanding shares of Common
Stock (including any such reclassification in connection with a consolidation or merger in which
the Company is the continuing or surviving corporation), then, in each such case and regardless of
whether any shares of Series A Preferred are then issued or outstanding, the aggregate amount to
which each holder of shares of Series A Preferred would otherwise be entitled immediately prior to
such event will be correspondingly 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 outstanding immediately prior to such
event.

     Section 7     Consolidation, Merger, Etc. In the event that the Company enters 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
each such case, each share of Series A Preferred will at the same time be similarly exchanged for
or changed into an amount per share, subject to the provision for adjustment hereinafter set forth,
equal to one hundred (100) 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

A-4

 

exchanged. In the event the Company at any time (a) declares a dividend on the outstanding
shares of Common Stock payable in shares of Common Stock, (b) subdivides the outstanding shares of
Common Stock, (c) combines the outstanding shares of Common Stock into a smaller number of shares
or (d) issues any shares of its capital stock in a reclassification of the outstanding shares of
Common Stock (including any such reclassification in connection with a consolidation or merger in
which the Company is the continuing or surviving corporation), then, in each such case and
regardless of whether any shares of Series A Preferred are then issued or outstanding, the amount
set forth in the preceding sentence with respect to the exchange or change of shares of Series A
Preferred will be correspondingly 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 outstanding immediately prior to such
event.

     Section 8     No Redemption. The shares of Series A Preferred are not redeemable.

     Section 9     Rank. The Series A Preferred rank, with respect to the payment of dividends and the
distribution of assets, junior to all other series of the Company’s Preferred Stock, unless the
terms of such series shall so provide.

     Section 10     Fractional Shares. Series A Preferred 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 A Preferred.

     Section 11     Amendment. The Articles of Incorporation shall not be amended in any manner which
would materially alter or change the powers, preferences or special rights of the Series A
Preferred so as to affect such stock adversely without the affirmative vote of the holders of at
least two-thirds of the outstanding shares of Series A Preferred, voting together as a single
class.

A-5

 

Exhibit B

FORM OF RIGHTS CERTIFICATE

			
	Certificate No. R-_________
	 	_________Rights

NOT EXERCISABLE AFTER SEPTEMBER 29, 2018 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS OR IF THE
RIGHTS AGREEMENT (AS HEREINAFTER DEFINED) IS EARLIER TERMINATED. THE RIGHTS ARE SUBJECT TO
REDEMPTION AT $0.0001 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.

RIGHTS CERTIFICATE

WOODBRIDGE HOLDINGS CORPORATION

     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, (the “Rights Agreement”), by and between
Woodbridge Holdings Corporation, a Florida corporation (the “Company”), and American Stock Transfer
& Trust Company (the “Rights Agent”), dated as of September 29, 2008, to purchase from the Company
at any time after the Distribution Date (as such term is defined in the Rights Agreement) and prior
to 5:00 p.m. (New York time) on the Expiration Date (as such term is defined in the Rights
Agreement) at the office or offices of the Rights Agent designated for such purpose, one
one-hundredth of a fully paid nonassessable share of Series A Junior Participating Preferred Stock,
par value $0.01 per share, of the Company (the “Preferred Stock”), at a purchase price of $12.00
per one one-hundredth of a share of Preferred Stock (the “Purchase Price”), upon presentation and
surrender of this Rights Certificate with the Form of Election to Purchase and related Certificate
duly executed. If this Rights Certificate is exercised in part, the holder will be entitled to
receive upon surrender hereof another Rights Certificate or Rights Certificates for the number of
whole Rights not exercised. The number of Rights evidenced by this Rights Certificate (and the
number of one one-hundredths of a share of Preferred Stock 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 the date of the Rights Agreement, based on the shares of Preferred Stock as constituted at
such date. As provided in the Rights Agreement, the Purchase Price and/or the number and/or kind of
shares of Preferred Stock (or other securities, as the case may be) which may be purchased upon the
exercise of the Rights evidenced by this Rights Certificate are subject to adjustment upon the
occurrence of certain events. Capitalized terms used but not defined herein shall have the
meanings ascribed to such terms in the Rights Agreement.

     This Rights Certificate is subject to all of the terms, provisions and conditions of the
Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by
reference and made a part hereof and to which Rights Agreement reference is hereby made for a full
description of the rights, limitations of rights, obligations, duties and immunities of the Rights
Agent, the Company and the holders of the Rights Certificates, which limitations of rights include
the temporary suspension of the exercisability of the Rights under the circumstances specified in
the Rights Agreement. Copies of the Rights Agreement are on file at the principal executive offices
of the Company and can be obtained from the Company without charge upon written request therefor.

B-1

 

     Pursuant to the Rights Agreement, from and after the occurrence of any Person becoming an
Acquiring Person, any Rights that are Beneficially Owned by (i) any Acquiring Person (or any
Affiliate or Associate of any Acquiring Person), (ii) a transferee of any Acquiring Person (or any
such Affiliate or Associate) who becomes a transferee after the occurrence of any Person becoming
an Acquiring Person or (iii) a transferee of any Acquiring Person (or any such Affiliate or
Associate) who became a transferee prior to or concurrently with any Person becoming an Acquiring
Person pursuant to either (a) a transfer from an Acquiring Person to holders of its equity
securities or to any Person with whom it has any continuing agreement, arrangement or understanding
regarding the transferred Rights or (b) a transfer which the Board has determined is part of a
plan, arrangement or understanding which has the purpose or effect of avoiding certain provisions
of the Rights Agreement, and subsequent transferees of any of such Persons, will be void without
any further action, and any holder of such Rights will thereafter have no rights whatsoever with
respect to such Rights under any provision of the Rights Agreement. From and after the occurrence
of any Person becoming an Acquiring Person, no Rights Certificate will be issued that represents
Rights that are or have become void pursuant to the provisions of the Rights Agreement, and any
Rights Certificate delivered to the Rights Agent that represents Rights that are or have become
void pursuant to the provisions of the Rights Agreement will be canceled.

     This Rights Certificate, with or without other Rights Certificates, may be exchanged for
another Rights Certificate or Rights Certificates entitling the holder to purchase a like number of
one one-hundredths of a share of Preferred Stock (or other securities, as the case may be) as the
Rights Certificate or Rights Certificates surrendered entitled such holder (or former holder in the
case of a transfer) to purchase, upon presentation and surrender hereof at the office or offices of
the Rights Agent designated for such purpose, with the Form of Assignment (if appropriate) and the
related Certificate duly executed.

     Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate
may be redeemed by the Company at its option at a redemption price of $0.0001 per Right or may be
exchanged in whole or in part. The Rights Agreement may be supplemented and amended by the Company,
as provided therein.

     The Company is not required to issue fractions of shares of Preferred Stock (other than
fractions which are integral multiples of one one-hundredths of a share of Preferred Stock, which
may, at the option of the Company, be evidenced by depositary receipts) or other securities
issuable upon the exercise of any Right or Rights evidenced hereby. In lieu of issuing such
fractional shares, the Company may make a cash payment, as provided in the Rights Agreement.

     No holder of this Rights Certificate, as such, will be entitled to vote or receive dividends
or be deemed for any purpose the holder of shares of Preferred Stock or of any other securities of
the Company which may at any time be issuable upon the exercise of the Right or Rights represented
hereby, nor shall anything contained herein or in the Rights Agreement be construed to confer upon
the holder hereof, as such, any of the rights of a shareholder of the Company or any right to vote
on any matter submitted to the shareholders of the Company, including, without limitation, the
election of directors, or to give or withhold consent to any corporate action, or to receive notice
of meetings or other actions affecting shareholders (except as provided in the Rights Agreement),
or to receive dividends or
subscription rights, or otherwise, until the Right or Rights evidenced by this Rights
Certificate have been exercised in accordance with the provisions of the Rights Agreement.

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

B-2

 

     WITNESS the facsimile signatures of the proper officers of the Company. Dated as of September
29, 2008.

	 	 	 	 	 
	 	WOODBRIDGE HOLDINGS CORPORATION

 	 
	 	/s/ Alan B. Levan
 	 
	 	Name:  	Alan B. Levan 	 
	 	Title:  	Chairman and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	Attested:

 	 
	 	/s/ John K. Grelle
 	 
	 	Name:  	John K. Grelle 	 
	 	Title:  	Executive Vice President and Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	Countersigned:

AMERICAN STOCK TRANSFER & TRUST COMPANY

 	 
	 	/s/ Felix Orihuela
 	 
	 	Name:  	Felix Orihuela 	 
	 	Title:  	Vice President and Relationship Manager 	 
	 

B-3

 

Form of Reverse Side of Rights Certificate

FORM OF ASSIGNMENT

(To be executed by the registered holder if such holder desires to transfer the Rights Certificate)

FOR VALUE
RECEIVED, __________________ hereby sells, assigns and transfers this Rights
Certificate, together with all right, title and interest herein, unto

 

(Please print name and address of transferee)

and does
hereby irrevocably constitute and appoint __________________ attorney, with full power of
substitution, to transfer the within Rights Certificate on the books of the within-named Company.

Dated : __________, _____

	 	 	 	 	 
	 	 	 
	 	 	 
	 	Signature 	 
	 	 	 
	 

Signature(s) Guaranteed:

SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS,
SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.

 

The undersigned hereby certifies that the Rights evidenced by this Rights Certificate are not
beneficially owned by an Acquiring Person or an Affiliate or Associate thereof (as defined in the
Rights Agreement).

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Signature 	 
	 	 	 
	 

B-4

 

CERTIFICATE

     The undersigned hereby certifies that:

     (1) the Rights evidenced by this Rights Certificate are not being sold, assigned, transferred,
split up, combined or exchanged by or on behalf of a Person who is or was an Acquiring Person or an
Affiliate or Associate of any such Person (as such terms are defined in the Rights Agreement); and

     (2) after due inquiry and to the best knowledge of the undersigned, the undersigned did not
acquire the Rights evidenced by this Rights Certificate from any Person who is, was or became an
Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such terms are defined in
the Rights Agreement).

Dated: _________, ________

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Signature 	 
	 	 	 
	 

B-5

 

Form of Reverse Side of Rights Certificate — continued

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires to exercise the Rights Certificate)

     To Woodbridge Holdings Corporation:

     The
undersigned hereby irrevocably elects to exercise __________________ Rights represented by this
Rights Certificate to purchase, with respect to each such Right so exercised, one one-hundredth of
a share of Preferred Stock or other securities issuable upon the exercise of such Rights and
requests that certificates for such securities be issued in the name of and delivered to:

Please insert social security or other identifying number: _________________________

 

(Please print name and address)

If such number of Rights is not all the Rights evidenced by this Rights Certificate, a new Rights
Certificate for the balance remaining of such Rights will 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(s) Guaranteed:

SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS,
SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.

 

The undersigned hereby certifies that the Rights evidenced by this Rights Certificate are not
beneficially owned by an Acquiring Person or an Affiliate or Associate thereof (as defined in the
Rights Agreement).

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Signature 	 
	 	 	 
	 

B-6

 

CERTIFICATE

     The undersigned hereby certifies that:

     (1) the Rights evidenced by this Rights Certificate are not being exercised by or on behalf of
a Person who is or was an Acquiring Person or an Affiliate or Associate of any such Person (as such
terms are defined in the Rights Agreement); and

     (2) after due inquiry and to the best knowledge of the undersigned, the undersigned did not
acquire the Rights evidenced by this Rights Certificate from any Person who is, was, or became an
Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such terms are defined in
the Rights Agreement).

Dated: ______________, _______

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Signature 	 
	 	 	 
	 

B-7

 

NOTICE

     The signature in the Form of Assignment or Form of Election to Purchase, as the case may be,
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 the Form of
Election to Purchase, as the case may be, is not completed, such Assignment or Election to Purchase
will not be honored.

B-8

 

Exhibit C

SUMMARY OF RIGHTS

     On September 24, 2008, our Board of Directors declared a dividend of one preferred share
purchase right (each, a “Right”) for each outstanding share of Class A Common Stock and Class B
Common Stock outstanding as of October 9, 2008 (the “Record Date”). The terms of the Rights are set
forth in a Rights Agreement, by and between us and American Stock Transfer & Trust Company, as
Rights Agent, dated as of September 29, 2008 (the “Rights Plan”).

     This Summary of Rights provides only a general description of the Rights Plan, and thus,
should be read together with the entire Rights Plan, which is incorporated into this summary by
reference. Capitalized terms used but not defined herein shall have the meanings ascribed to such
terms in the Rights Plan. Upon written request, we will provide a copy of the Rights Plan free of
charge to any of our shareholders.

     Our Board adopted the Rights Plan in an effort to protect shareholder value by attempting to
protect against a possible limitation on our ability to use our net operating loss carryforwards
(the “NOLs”) to reduce potential future federal income tax obligations. We have experienced and
continue to experience operating losses, and under the Internal Revenue Code and rules promulgated
by the Internal Revenue Service, we may “carry forward” these losses in certain circumstances to
offset any current and future earnings and thus reduce our federal income tax liability, subject to
certain requirements and restrictions. To the extent that the NOLs do not otherwise become limited,
we believe that we will be able to carry forward a significant amount of NOLs, and therefore these
NOLs could be a substantial asset to us. However, if we experience an “Ownership Change,” as
defined in Section 382 of the Internal Revenue Code, our ability to use the NOLs will be
substantially limited, and the timing of the usage of the NOLs could be substantially delayed,
which could therefore significantly impair the value of that asset.

     The Rights Plan is intended to act as a deterrent to any person or group from acquiring 5.0%
or more of our outstanding Class A Common Stock (an “Acquiring Person”) without the approval of our
Board. Shareholders who own 5.0% or more of our outstanding Class A Common Stock as of the close of
business on the Record Date will not trigger exercisability of the Rights under the Rights Plan so
long as they do not (i) acquire any additional shares of Class A Common Stock or (ii) fall under
5.0% ownership of Class A Common Stock and then re-acquire 5.0% or more of the Class A Common
Stock. The Rights Plan does not exempt any future acquisitions of Class A Common Stock by such
persons. Additionally, a shareholder who our Board determines has inadvertently exceeded the 5.0%
threshold can avoid the dilutive effect of the Rights by promptly divesting shares of Class A
Common Stock so as to reduce its interest below the threshold level. Further, our Board may, in
its sole discretion, exempt any person or group from being deemed an Acquiring Person for purposes
of the Rights Plan. Any Rights held by an Acquiring Person and the Acquiring Person’s Affiliates
and Associates will become void and may not be exercised.

     By providing a deterrent to any person or group from acquiring 5.0% or more of our outstanding
Class A Common Stock, the Rights Plan may also have an anti-takeover effect. However, the Rights
Plan should not interfere with any merger or other business combination approved by our Board.

C-1

 

     The Rights. Our Board authorized the issuance of one Right per each share of our Class A
Common Stock and Class B Common Stock outstanding as of October 9, 2008. Subject to the terms,
provisions and conditions of the Rights Plan, if the Rights become exercisable, each Right would
initially represent the right to purchase from us one one-hundredth of a share of our Series A
Junior Participating Preferred Stock for a purchase price of $12.00 (the “Purchase Price”). If
issued, each fractional share of Series A Junior Participating Preferred Stock would give the
shareholder approximately the same dividend, voting and liquidation rights as does one share of our
Class A Common Stock. However, prior to exercise, a Right does not give its holder any rights as a
shareholder of the Company, including, without limitation, any dividend, voting or liquidation
rights.

     Exercisability. The Rights will not be exercisable until the earlier of (i) 10 business days
after a public announcement by us that a person or group has become an Acquiring Person and (ii) 10
business days after the commencement of a tender or exchange offer by a person or group for 5.0% or
more of our Class A Common Stock.

     We refer to the date that the Rights become exercisable as the “Distribution Date.” Until the
Distribution Date, our Class A Common Stock and Class B Common Stock certificates will evidence the
Rights and will contain a notation to that effect. Any transfer of shares of Class A Common Stock
and/or Class B Common Stock prior to the Distribution Date will constitute a transfer of the
associated Rights. After the Distribution Date, the Rights may be transferred other than in
connection with the transfer of the underlying shares of Class A Common Stock or Class B Common
Stock unless and until our Board has determined not to affect an exchange pursuant to the Rights
Plan (as described below).

     After the Distribution Date, each holder of a Right, other than Rights beneficially owned by
the Acquiring Person and any Affiliate or Associate of the Acquiring Person (which will have become
void), will thereafter have the right to receive upon exercise of a Right and payment of the
Purchase Price, that number of shares of Class A Common Stock having a market value of two times
the Purchase Price.

     Exchange. After the Distribution Date, the Board may exchange the Rights (other than Rights
owned by the Acquiring Person and any Affiliate or Associate of the Acquiring Person which will
have become void), in whole or in part, at an exchange ratio of one share of Class A Common Stock,
or a fractional share of Series A Junior Participating Preferred Stock (or of a share of a similar
class or series of the Company’s preferred stock having similar rights, preferences and privileges)
of equivalent value, per Right (subject to adjustment).

     Expiration. The Rights and the Rights Plan will expire on the earliest of (i) September 29,
2018, (ii) the time at which the Rights are redeemed pursuant to the Rights Plan, (iii) the time at
which the Rights are exchanged pursuant to the Rights Plan, (iv) the repeal of Section 382 of the
Code or any successor statute if our Board determines that the Rights Plan is no longer necessary
for the preservation of Tax Benefits and (v) the beginning of a taxable year to which our Board
determines that no Tax Benefits may be carried forward.

     Redemption. At any time prior to the Distribution Date, our Board may redeem the Rights in
whole, but not in part, at a price of $0.0001 per Right (the “Redemption Price”). The redemption of
the Rights may be made effective at such time, on such basis and with such conditions as our Board,
in its
sole discretion, may establish. Immediately upon any redemption of the Rights, the right to
exercise the Rights will terminate, and the holders of Rights will thereafter only have the right
to receive the Redemption Price.

C-2

 

     Anti-Dilution Provisions. Our Board may adjust the Purchase Price, the number of shares
issuable upon exercise of the Rights and the number of outstanding Rights to prevent dilution that
may occur as a result of certain events, including, among others, a stock dividend, a stock split
or a reclassification of our Preferred or Common Stock. No adjustments to the Purchase Price of
less than 1% will be made.

     Amendments. Before the Distribution Date, our Board may amend or supplement the Rights Plan
without the consent of the Rights holders. After the Distribution Date, our Board may amend or
supplement the Rights Plan only to cure an ambiguity, to alter time period provisions, to correct
inconsistent provisions or to make any additional changes to the Rights Plan, but only to the
extent that those changes do not impair or adversely affect any Rights holder and do not result in
the Rights again becoming redeemable or the Rights Plan again becoming amendable other than in
connection with amendments described in this sentence.

C-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]