Document:

exv4w1

 

EXHIBIT 4.1

COMMON STOCK

 

					
	Number

BBG             
	 	BILL BARRETT CORPORATION

INCORPORATED UNDER THE LAWS OF DELAWARE
	 	Shares

            

	 	 	 
	

	 	SEE REVERSE FOR

CERTAIN DEFINITIONS
	

	 	 
	

	 	THIS CERTIFICATE IS

TRANSFERABLE IN NEW YORK, NY

AND RIDGEFIELD PARK, NJ
	

	 	 
	

	 	CUSIP 06846N 10 4

THIS CERTIFIES THAT                       is the owner of              FULLY PAID AND NON-ASSESSABLE
SHARES OF THE COMMON STOCK, PAR VALUE $0.001 PER SHARE, OF BILL BARRETT CORPORATION transferable on
the books of the Corporation by the holder hereof in person or by duly authorized attorney upon
surrender of this certificate properly endorsed. This certificate is not valid unless
countersigned by the Transfer Agent and registered by the Registrar

     WITNESS the seal of the Corporation and the signatures of its duly authorized officers.

Dated:

	 	 	 	 	 
	                     

SECRETARY
	 	[SEAL OF BILL BARRETT

CORPORATION]
	 	                     

PRESIDENT

COUNTERSIGNED AND REGISTERED:

         MELLON INVESTOR SERVICES LLC

                  TRANSFER AGENT AND REGISTRAR

	 	 	 
	BY:	 
AUTHORIZED SIGNATURE

 

 

     The Corporation will furnish without charge to each stockholder who so requests a statement of
the designations, powers, preferences and relative participating, optional or other special rights
of each class of stock or series thereof of the Corporation and the qualifications, limitations or
restrictions of such preferences and/or rights. Such request may be made to the Corporation or the
Transfer Agent.

     This certificate also evidences and entitles the holder hereof to certain Rights as set forth
in a Rights Agreement between Bill Barrett Corporation and Mellon Investor Services LLC as Rights
Agent, dated as of December 15, 2004, as it may from time to time be amended or supplemented
pursuant to its terms (the “Rights 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 Bill Barrett
Corporation. Under certain circumstances, as set forth in the Rights Agreement, such Rights will
be evidenced by separate certificates and will no longer be evidenced by this certificate. Bill
Barrett Corporation will mail to the holder of this certificate a copy of the Rights Agreement
without charge after receipt of a written request therefor. Under certain circumstances, Rights
that are or were acquired or beneficially owned by Acquiring Persons (as defined in the Rights
Agreement) may become null and void.

     The following abbreviations, when used in the inscription on the face of this Certificate,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 	 	 	 
	TEN COM

TEN ENT

JT TEN

	 	-

-

-
	 	as tenants in common

as tenants by the entireties

as joint tenants with right of survivorship and not as tenants in common

									
	UNIF GIFT MIN ACT

	 	-
	 	                                                   

(Cust)
	 	Custodian
	 	                                                   

(Minor)
	 	 	 	 	under Uniform Gifts to Minors

	 	 	 	 	Act ________________

(State)

Additional abbreviations may also be used though not in the above list.

For Value Received, the undersigned hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

                                                                                                                                                                                                                             shares of the capital
stock represented by the within Certificate, and do hereby irrevocably constitute and appoint

                                                                                                                                                                                                                             Attorney to transfer the said
stock on the books of the within named Corporation with full power of substitution in the premises.

Dated                                              

NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE
OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

Signature(s) Guaranteed:

THE SIGNATURE(S) MUST 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.exv4w4

 

EXHIBIT 4.4

RIGHTS AGREEMENT

     Agreement, dated as of December 15, 2004, between Bill Barrett Corporation, a Delaware
corporation (the “Company”), and Mellon Investor Services LLC (the “Rights Agent”).

     The Board of Directors of the Company and the Pricing Committee appointed by the Board of
Directors in connection with the IPO have authorized and declared a dividend of one preferred share
purchase right (a “Right”) for each share of Common Stock, par value $0.001 per share, of the
Company (a “Common Share”) outstanding immediately following consummation of the IPO (the “Record
Date”) and have authorized the issuance of one Right with respect to each additional Common Share
that shall become outstanding between the Record Date and the earliest of the Close of Business on
the Distribution Date, the Redemption Date and the Close of Business on the Final Expiration Date,
and certain additional shares of Common Stock that shall become outstanding after the Distribution
Date as provided in Section 22 of this Agreement, each Right representing the right to purchase one
one-thousandth of a Preferred Share (as hereinafter defined), or such different amount and/or kind
of securities as shall be hereinafter provided.

     Accordingly, in consideration of the premises and the mutual agreements herein set forth, the
parties hereby agree as follows:

   Section 1. Certain Definitions.

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

     “Acquiring Person” shall mean any Person who or which, at any time after consummation of the
IPO, together with all Affiliates and Associates of such Person, shall be the Beneficial Owner of
15%, or in the case of (i) the Grandfathered Stockholders, other than a Second Tier Grandfathered
Stockholder, more than the Permitted Percentage, or (ii) a Second Tier Grandfathered Stockholder,
the greater of 15% or such percentage as is beneficially owned

 

 

by the related Existing Holders plus 1% or more of the Common Shares of the Company then
outstanding but shall not include (i) the Company, (ii) any Subsidiary of the Company, (iii) any
employee benefit plan of the Company or any Subsidiary of the Company, or (iv) any entity holding
Common Shares for or pursuant to the terms of any such employee benefit plan. Notwithstanding the
foregoing, (1) no Person shall become an “Acquiring Person” as the result of an acquisition of
Common Shares by the Company which, by reducing the number of shares outstanding, increases the
proportionate number of shares beneficially owned by such Person to 15% (or such other percentage
as would otherwise result in such person becoming an Acquiring Person) or more of the Common Shares
of the Company then outstanding; provided, however, that if a Person shall so
become the Beneficial Owner of 15% (or such other percentage) or more of the Common Shares of the
Company then outstanding by reason of an acquisition of Common Shares by the Company and shall,
after such share purchases by the Company, become the Beneficial Owner of an additional 1% of the
outstanding Common Shares of the Company, then such Person shall be deemed to be an “Acquiring
Person”; and (2) if the Board of Directors of the Company determines in good faith that a Person
who would otherwise be an “Acquiring Person,” as defined pursuant to the foregoing provisions of
this paragraph, has become such inadvertently, and such Person divests as promptly as practicable a
sufficient number of Common Shares so that such Person would no longer be an “Acquiring Person,” as
defined pursuant to the foregoing provisions of this paragraph, then such Person shall not be
deemed to have become an “Acquiring Person” for any purposes of this Agreement.

     “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule
12b-2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), as in effect on the date of this Agreement.

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

          (i) which such Person or any of such Person’s Affiliates or Associates beneficially owns,
directly or indirectly;

          (ii) which such Person or any of such Person’s Affiliates or Associates has (A) the right to
acquire (whether such right is exercisable immediately or only after the passage of time) pursuant
to any agreement, arrangement or understanding (other than customary agreements with and between
underwriters and selling group members with respect to a bona fide public offering of securities),
written or otherwise, or upon the exercise of conversion rights, exchange rights, rights (other
than the Rights), warrants or options, or otherwise; provided, however, that a
Person shall not be deemed to be the Beneficial Owner of, or to beneficially own, securities
tendered pursuant to a tender or exchange offer made pursuant to, and in accordance with, the
applicable rules and regulations promulgated under the Exchange Act by or on behalf of such Person
or any of such Person’s Affiliates or Associates until such tendered securities are accepted for
purchase or exchange; or (B) the right to vote pursuant to any agreement, arrangement or
understanding; provided, however, that a Person shall not be deemed the Beneficial
Owner of, or to beneficially own, any security if the agreement, arrangement or understanding to
vote such security (1) arises solely from a revocable proxy or consent given to such Person in
response to a public proxy or consent solicitation made pursuant to, and in accordance with, the
applicable rules and regulations promulgated under the Exchange Act and (2) is not also then
reportable on Schedule 13D under the Exchange Act (or any comparable or successor report); or

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          (iii) which are beneficially owned, directly or indirectly, by any other Person with which
such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement or
understanding (other than customary agreements with and between underwriters and selling group
members with respect to a bona fide public offering of securities), written or otherwise, for the
purpose of acquiring, holding, voting (except to the extent contemplated by the proviso to section
(B) of the immediately preceding paragraph (ii)) or disposing of any securities of the Company.

     Notwithstanding anything in this definition of Beneficial Ownership to the contrary, the
phrase “then outstanding,” when used with reference to a Person’s Beneficial Ownership of
securities of the Company, shall mean the number of such securities then issued and outstanding
together with the number of such securities not then actually issued and outstanding which such
Person would be deemed to own beneficially hereunder.

     “Business Day” shall mean any day other than a Saturday, Sunday, or a day on which banking
institutions in the states of California or New Jersey are authorized or obligated by law or
executive order to close.

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

     “Common Shares” when used with reference to the Company shall mean the shares of Common Stock,
par value $.001 per share, of the Company. “Common Shares” when used with reference to any Person
other than the Company shall mean the capital stock (or equity interest) with the greatest voting
power of such other Person or, if such other Person is a

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Subsidiary of another Person, the Person or Persons which ultimately control such
first-mentioned Person.

     “common stock equivalents” shall have the meaning set forth in Section 11(a)(iii)(B)(3)
hereof.

     “Current Value” shall have the meaning set forth in Section 11(a)(iii)(A)(1) hereof.

     “Distribution Date” shall have the meaning set forth in Section 3(a) hereof.

     “equivalent preferred shares” shall have the meaning set forth in Section 11(b) hereof.

     “Exchange Ratio” shall have the meaning set forth in Section 24(a) hereof.

     “Final Expiration Date” shall mean June 30, 2014.

     “Goldman Entities” shall mean Goldman Sachs Direct Investment, GSCP Capital Partners 2000,
L.P., GSCP 2000 Offshore BBOG Holding, GSCP GmbH Holding, L.P., GC Capital Partners 2000 Employee
Fund, L.P., Stone Street Fund 2000 L.P., and Stone Street BBOG Holding.

     “Grandfathered Stockholder” shall mean (i) Warburg Pincus Private Equity VIII, L.P., the
Goldman Entities, and the JP Morgan Entities and each such stockholder’s Affiliates and Associates
(each an “Existing Holder”), other than any Person who or which is not such an Affiliate or
Associate immediately following the IPO and who or which subsequently acquires direct or indirect
control of an Existing Holder without the prior written approval of the board of directors of the
Company (such Person a “Non-grandfathered Stockholder”); and (ii) any Person not covered by (i),
above, except a Non-grandfathered Stockholder, who or which is the

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Beneficial Owner of Common Shares that continue to be beneficially owned by an Existing Holder
(each such Person a “Second Tier Grandfathered Stockholder”).

     “IPO” shall mean the initial public offering of the Common Shares.

     “JP Morgan Entities” shall mean J.P. Morgan Partners (BHCA), L.P., J.P. Morgan Partners Global
Investors, L.P., J.P. Morgan Partners Global Investors (Cayman), L.P., J.P. Morgan Partners Global
Investors (Cayman) II, L.P., JPMP Global Fund/Bill Barrett A, L.P., and JPMP Global Fund/Bill
Barrett, L.P.

     “Permitted Percentage” shall mean: for Warburg Pincus Private Equity, VIII, L.P., the
percentage of the Common Shares then outstanding beneficially owned by Warburg Pincus Private
Equity, VIII, L.P. immediately following the IPO; for the Goldman Entities, the percentage of the
Common Shares then outstanding beneficially owned by the Goldman Entities immediately following the
IPO; and, for the JP Morgan Entities, the percentage of Common Shares then outstanding beneficially
owned by JP Morgan Entities immediately following the IPO.

     “Person” shall mean any individual, firm, corporation, partnership, limited partnership,
limited liability partnership, business trust, limited liability company, unincorporated
association or other entity, and shall include any successor (by merger or otherwise) of such
entity.

     “Purchase Price” shall have the meaning set forth in Section 7(b) hereof.

     “Preferred Shares” shall mean shares of Series A Junior Participating Preferred Stock, par
value $0.001 per share, of the Company having such rights and preferences as are set forth in the
form of Certificate of Designation set forth as Exhibit A hereto, as the same may be amended from
time to time.

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     “Redemption Date” shall have the meaning set forth in Section 23 hereof.

     “Right Certificate” shall mean a certificate evidencing a Right in substantially the form of
Exhibit B hereto.

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

     “Shares Acquisition Date” shall mean the earlier of the date of (i) the public announcement
(which, for purposes of this definition, shall include, without limitation, a report filed pursuant
to Section 13(d) under the Exchange Act) Company or an Acquiring Person that an Acquiring Person
has become such or (ii) the public disclosure of facts by the Company or an Acquiring Person
indicating that an Acquiring Person has become such.

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

     “Subsidiary” of any Person shall mean any Person of which a majority of the voting power of
the voting equity securities or equity interest is owned, directly or indirectly by such Person.

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

     “Summary of Rights” shall mean the Summary of Rights to Purchase Preferred Shares in
substantially the form of Exhibit C hereto.

   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. The
Company may from time to time appoint such co-Rights Agents as it may deem necessary or desirable
upon ten (10) days’ prior written notice to the Rights Agent. The Rights Agent shall have no duty
to supervise, and shall in no event be liable for, the acts or omissions of any co-Rights Agent.

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   Section 3. Issue of Right Certificates.

     (a) Until the earlier of the Close of Business on (i) the tenth day after the Shares
Acquisition Date or (ii) the tenth Business Day (or such later date as may be determined by action
of the Board of Directors prior to such time as any Person becomes an Acquiring Person) after the
date of the commencement by any Person (other than the Company, any Subsidiary of the Company, any
employee benefit plan of the Company or of any Subsidiary of the Company or any entity holding
Common Shares for or pursuant to the terms of any such plan) of, or of the first public
announcement (which, for purposes of this definition, shall include a report published or sent or
given within the meaning of Rule 14d-2(a) of the General Rules and Regulations under the Exchange
Act, if, assuming the successful consummation thereof, such Person would be an Acquiring Person) of
the intention of any Person (other than any of the Persons referred to in the preceding
parenthetical) to commence, a tender or exchange offer the consummation of which would result in
any Person becoming the Beneficial Owner of Common Shares aggregating 15% or, in the case of (i) a
Grandfathered Stockholder other than a Second Tier Grandfathered Stockholder, more than its
Permitted Percentage, or (ii) a Second Tier Grandfathered Stockholder, the greater of 15% or such
percentage as is beneficially owned by each Existing Holder plus 1%, or more of the then
outstanding Common Shares (such date being herein referred to as the “Distribution Date”), (x) the
Rights will be evidenced (subject to the provisions of Section 3(b) hereof) by the certificates for
Common Shares registered in the names of the holders thereof (which certificates shall also be
deemed to be Right Certificates) and not by separate Right Certificates, and (y) the right to
receive Right Certificates will be transferable only in connection with the transfer of Common
Shares. As soon as practicable after the Distribution Date, the Company will prepare and execute,
the Rights Agent will countersign, and the Company will (and the Rights Agent will, if so requested
by written notice, and provided

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with a shareholders list and all other relevant information which the Rights Agent may
request, at the expense of the Company) send or cause to be sent by first-class, insured,
postage-prepaid mail, or overnight courier, to each record holder of Common Shares as of the Close
of Business on the Distribution Date, at the address of such holder shown on the records of the
Company, a Right Certificate evidencing one Right for each Common Share so held subject to
adjustment as provided herein. In the event that an adjustment in the number of Rights per Common
Share has been made pursuant to Section 11 hereof, then at the time of distribution of the Right
Certificates, the Company shall make the necessary and appropriate rounding adjustments (in
accordance with Section 14(a) hereof) so that Right 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 Right Certificates and may be transferred by the
transfer of the Right Certificates as permitted hereby, separately and apart from any transfer of
Common Shares, and the holders of such Right Certificates as listed in the records of the Company
or any transfer agent or registrar for the Rights shall be the record holders thereof. Until
otherwise notified by the Company, 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
the Summary of Rights by first-class, postage-prepaid mail, to each record holder of Common Shares
as of the Close of Business on the Record Date, whose shares are represented by certificates that
do not have the legend provided for in Section 3(c), at the address of such holder shown on the
records of the Company. With respect to such certificates, until the Close of Business on 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

-9-

 

thereto. Until the Close of Business on the Distribution Date (or the earlier of the
Redemption Date or the Close of Business on the Final Expiration Date), the surrender for transfer
of any certificate for Common Shares 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 Common Shares evidenced thereby.

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

     This certificate also evidences and entitles the holder hereof
to certain Rights as set forth in a Rights Agreement between Bill
Barrett Corporation and Mellon Investor Services LLC (or any
successor thereto), as Rights Agent, dated as of December 15, 2004,
as it may from time to time be amended or supplemented pursuant to
its terms (the “Rights 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 Bill Barrett Corporation. Under
certain circumstances, as set forth in the Rights Agreement, such
Rights will be evidenced by separate certificates and will no longer
be evidenced by this certificate. Bill Barrett Corporation will
mail to the holder of this certificate a copy of the Rights
Agreement without charge after receipt of a written request
therefor. Under certain circumstances, Rights that are or were
acquired or beneficially owned by Acquiring Persons (as defined in
the Rights Agreement) may become null and void.

With respect to such certificates containing the foregoing legend, until the Close of Business on
the Distribution Date, the Rights associated with the Common Shares represented by certificates
shall 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 Common Shares

-10-

 

represented thereby. In the event that the Company purchases or acquires any Common Shares after
the Record Date but prior to the Close of Business on the Distribution Date, any Rights associated
with such Common Shares shall be deemed canceled and retired so that the Company shall not be
entitled to exercise any Rights associated with the Common Shares which are no longer outstanding.

   Section 4. Form of Right Certificates.

     The Right Certificates (and the forms of election to purchase Preferred Shares and of
assignment to be printed on the reverse thereof) shall be substantially the same as Exhibit B
hereto and may have such marks of identification or designation and such legends, summaries or
endorsements printed thereon as the Company may deem appropriate (but which do not affect the
rights, duties or obligations of the Rights Agent as set forth in this Agreement) 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 national market system on which the Rights may from time to time be
listed, or to conform to usage. Subject to the other provisions of this Agreement, the Right
Certificates shall entitle the holders thereof to purchase such number of one one-thousandths of a
Preferred Share as shall be set forth therein at the Purchase Price, but the number of one
one-thousandths of a Preferred Share and the Purchase Price shall be subject to adjustment as
provided herein.

   Section 5. Countersignature and Registration.

     The Right Certificates shall be executed on behalf of the Company by its Chairman of the
Board, its Chief Executive Officer, its President, any of its Vice Presidents, or its Treasurer,
either manually or by facsimile signature, shall have affixed thereto the Company’s seal (if any)
or a facsimile thereof, and shall be attested by the Secretary or any Assistant

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Secretary of the Company, either manually or by facsimile signature. The Right Certificates
shall be countersigned by the Rights Agent and shall not be valid for any purpose unless so
countersigned. In case any officer of the Company who shall have signed any of the Right
Certificates shall cease to be such officer of the Company before countersignature by the Rights
Agent and issuance and delivery by the Company, such Right Certificates, nevertheless, may be
countersigned by the Rights Agent and issued and delivered by the Company with the same force and
effect as though the person who signed such Right Certificates had not ceased to be such officer of
the Company; and any Right Certificate may be signed on behalf of the Company by any person who, at
the actual date of the execution of such Right Certificate, shall be a proper officer of the
Company to sign such Right Certificate, although at the date of the execution of this Rights
Agreement any such person was not such an officer.

     Following the Distribution Date, and receipt by the Rights Agent of (i) written notice of the
Distribution Date, and (ii) a shareholder list and all relevant information requested by the Rights
Agent pursuant to Section 3(a) hereof, the Rights Agent will keep or cause to be kept, at its
office designated for such purpose, books for registration of the transfer of the Right
Certificates issued hereunder. Such books shall show the names and addresses of the respective
holders of the Right Certificates, the number of Rights evidenced on its face by each of the Right
Certificates and the date of each of the Right Certificates.

	 	 	 
	Section 6.

	 	Transfer, Split Up, Combination and Exchange of Right
Certificates; Mutilated, Destroyed, Lost or Stolen Right
Certificates.

     Subject to the provisions of Sections 14 and 24 hereof, at any time after the Close of
Business on the Distribution Date, and prior to the earlier of the Redemption Date or the Close of
Business on the Final Expiration Date, any Right Certificate or Right Certificates (other than
Right Certificates representing Rights that have become null and void pursuant to Section

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11(a)(ii) hereof or that have been exchanged pursuant to Section 24 hereof) may be
transferred, split up, combined or exchanged for another Right Certificate or Right Certificates,
entitling the registered holder to purchase a like number of one one-thousandths of a Preferred
Share as the Right Certificate or Right Certificates surrendered then entitled such holder to
purchase. Any registered holder desiring to transfer, split up, combine or exchange any Right
Certificate or Right Certificates shall make such request in writing delivered to the Rights Agent,
and shall surrender the Right Certificate or Right Certificates to be transferred, split up,
combined or exchanged at the office of the Rights Agent designated for such purpose. Neither the
Rights Agent nor the Company shall be obligated to take any action whatsoever with respect to the
transfer of any such surrendered Right Certificate until the registered holder shall have duly and
properly completed and signed the certificate contained in the form of assignment on the reverse
side of such Right Certificate and shall have provided such additional evidence of the identity of
the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the
Company or the Rights Agent shall reasonably request. Thereupon the Rights Agent shall,
subject to Sections 14 and 24 hereto, countersign and deliver to the person entitled thereto a
Right Certificate or Right Certificates, as the case may be, as so requested. The Company may
require payment of a sum sufficient for any tax or governmental charge that may be imposed in
connection with any transfer, split up, combination or exchange of Right Certificates. The Rights
Agent shall have no duty or obligation to take any action under any Section of this Agreement which
requires the payment by a Rights holder of applicable taxes and/or charges unless and until it is
satisfied that all such taxes and/or charges have been paid.

     Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them
of the loss, theft, destruction or mutilation of a Right Certificate, and, in case

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of loss, theft or destruction, of indemnity or security satisfactory to them, and, at the
Company’s or the Rights Agent’s request, reimbursement to the Company and the Rights Agent
of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and
cancellation of the Right Certificate if mutilated, the Company will make and deliver a new Right
Certificate of like tenor to the Rights Agent for delivery to the registered holder in lieu of the
Right Certificate so lost, stolen, destroyed or mutilated.

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

     (a) Subject to Sections 23(b) and 24(b) hereto, the registered holder of any Right Certificate
(other than a holder whose Rights have become void pursuant to Section 11(a)(ii) hereof or have
been exchanged pursuant to Section 24 hereof) may exercise the Rights evidenced thereby in whole or
in part at any time after the Distribution Date upon surrender of the Right Certificate, with the
form of election to purchase on the reverse side thereof duly executed, to the Rights Agent at its
office designated for such purpose, together with payment of the Purchase Price for each one
one-thousandth of a Preferred Share as to which the Rights are exercised, prior to the earliest of
(i) the Close of Business on the Final Expiration Date, (ii) the time at which the right to
exercise the Rights terminates pursuant to Section 23 hereof, or (iii) the time at which the right
to exercise the Rights terminates pursuant to Section 24 hereof.

     (b) The purchase price for each one one-thousandth of a Preferred Share to be purchased upon
the exercise of a Right shall initially be One Hundred Fifty Dollars ($150.00) (the “Purchase
Price”), shall be subject to adjustment from time to time as provided in Sections 11 and 13 hereof
and shall be payable in lawful money of the United States of America in accordance with paragraph
(c) below.

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     (c) Upon receipt of a Right Certificate representing exercisable Rights, with the form of
election to purchase and certificate duly executed, accompanied by payment of the Purchase Price
for the number of one one-thousandths of a Preferred Share to be purchased and an amount equal to
any applicable tax or charge required to be paid by the holder of such Right Certificate in
accordance with Section 9 hereof by cash, certified check, cashier’s check or money order payable
to the order of the Company, the Rights Agent shall, subject to Section 20(k) hereof, thereupon
promptly (i) (A) requisition from any transfer agent of the Preferred Shares certificates (or make
available, if the Rights Agent is the transfer agent for the Preferred Shares) for the number of
one one-thousandths of a Preferred Share to be purchased and the Company hereby irrevocably
authorizes its transfer agent to comply with all such requests, or (B) requisition from any
depositary agent for the Preferred Shares depositary receipts representing such number of one
one-thousandths of a Preferred Share as are to be purchased (in which case certificates for the
Preferred Shares represented by such receipts shall be deposited by the transfer agent with the
depositary agent) and the Company hereby directs any such depositary agent to comply with such
request, (ii) when appropriate, requisition from the Company the amount of cash to be paid in lieu
of issuance of fractional Preferred Shares in accordance with Section 14 hereof, (iii) after
receipt of such certificates or depositary receipts, cause the same to be delivered to or upon the
order of the registered holder of such Right Certificate, registered in such name or names as may
be designated by such holder and (iv) when appropriate, after receipt, deliver such cash to or upon
the order of the registered holder of such Right Certificate.

     (d) In case the registered holder of any Right Certificate shall exercise less than all the
Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent to

-15-

 

the Rights remaining unexercised shall be issued by the Rights Agent to the registered holder
of such Right Certificate or to his duly authorized assigns, subject to the provisions of Section
14 hereof.

     (e) Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor
the Company shall be obligated to undertake any action with respect to a registered holder upon the
occurrence of any purported exercise as set forth in this Section 7 unless such registered holder
shall, in addition to having complied with the requirements of Section 7(a), have (i) duly and
properly completed and signed the certificate following the form of election to purchase set forth
on the reverse side of the Right Certificate surrendered for such exercise and (ii) provided such
additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or
Affiliates or Associates thereof as the Company or the Rights Agent shall reasonably request.

   Section 8. Cancellation and Destruction of Right Certificates.

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

   Section 9. Status and Availability of Preferred Shares.

-16-

 

     (a) The Company covenants and agrees that it will take all such action as may be necessary to
ensure that all Preferred Shares delivered upon exercise of Rights shall, at the time of delivery
of the certificates for such Preferred Shares (subject to payment of the Purchase Price), be duly
and validly authorized and issued and fully paid and non-assessable shares.

     (b) The Company further covenants and agrees that it will pay when due and payable any and all
federal and state taxes and charges which may be payable in respect of the issuance or delivery of
the Right Certificates or of any Preferred Shares 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 Right Certificates to a person other than, or the issuance or delivery of
certificates or depositary receipts for the Preferred Shares (or other securities of the Company)
in a name other than that of, the registered holder of the Right Certificate evidencing Rights
surrendered for exercise, or to issue or to deliver any certificates or depositary receipts for
Preferred Shares upon the exercise of any Rights until any such tax or charge shall have been paid
(any such tax or charge being payable by the holder of such Right Certificate at the time of
surrender) or until it has been established to the Company’s reasonable satisfaction that no such
tax or charge is due.

     (c) The Company covenants and agrees that it will cause to be reserved and kept available, out
of its authorized and unissued Preferred Shares or any Preferred Shares held in its treasury, the
number of Preferred Shares that will be sufficient to permit the exercise in full of all
outstanding Rights in accordance with Section 7 hereof.

   Section 10. Preferred Shares Record Date.

     Each person in whose name any certificate for Preferred Shares (or other securities of the
Company) is issued upon the exercise of Rights shall for all purposes be deemed to have become the
holder of record of the Preferred Shares (or other securities of the Company)

-17-

 

represented thereby
on, and such certificate shall be dated, the date upon which the Right Certificate evidencing such
Rights was duly surrendered and payment of the Purchase Price (and any applicable taxes or 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 are closed, such Person shall be deemed to have become the record
holder of such shares on, and such certificate shall be dated, 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 Right Certificate shall not be entitled to any rights of a holder of
Preferred Shares (or other securities of the Company) for which the Rights shall 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 of Shares or Number of Rights.

     (a)

          (i) Anything in this Agreement to the contrary notwithstanding, in the event the Company shall
at any time after the date of this Agreement (A) declare a dividend on the Preferred Shares payable
in Preferred Shares, (B) subdivide the outstanding Preferred Shares, (C) combine the outstanding
Preferred Shares into a smaller number of Preferred Shares (by reverse stock split or otherwise) or
(D) issue any shares of its capital stock in a reclassification of the Preferred Shares (including
any such reclassification in connection with a consolidation or merger in which the Company is the
continuing or surviving corporation), except as otherwise provided in this Section 11(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, and the number and kind of shares of capital
stock issuable on such date, shall be proportionately

-18-

 

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, he would have owned upon such exercise and been entitled
to receive by virtue of such dividend, subdivision, combination or reclassification;
provided, however, that in no event shall the consideration to be paid upon the
exercise of one Right be less than the aggregate par value of the shares of capital stock of the
Company issuable upon exercise of one Right.

          (ii) Subject to the following paragraph of this subparagraph (ii) and to Section 24 of this
Agreement, in the event any Person shall become an Acquiring Person, each holder of a Right shall
thereafter have a right to receive, upon exercise thereof at a price equal to the then current
Purchase Price multiplied by the number of one one-thousandths of a Preferred Share for which a
Right is then exercisable, in accordance with the terms of this Agreement and in lieu of Preferred
Shares, such number of Common Shares of the Company as shall equal the result obtained by (x)
multiplying the then current Purchase Price by the number of one one-thousandths of a Preferred
Share for which a Right is then exercisable and dividing that product by (y) 50% of the then
current per share market price of the Company’s Common Shares (determined pursuant to Section 11(d)
hereof) on the date such Person became an Acquiring Person. In the event that any Person shall
become an Acquiring Person and the Rights shall then be outstanding, the Company shall not take any
action that would eliminate or diminish the benefits intended to be afforded by the Rights.

     From and after the occurrence of such an event, any Rights that are or were acquired or
beneficially owned by an Acquiring Person (or any Associate or Affiliate of such Acquiring Person)
on or after the earlier of (x) the date of such event and (y) the Distribution

-19-

 

Date shall be null and void and any holder of such Rights shall thereafter have no
right to exercise such Rights under any provision of this Agreement. No Right Certificate shall be
issued pursuant to Section 3 that represents Rights beneficially owned by an Acquiring Person whose
Rights would be null and void pursuant to the preceding sentence or any Associate or Affiliate
thereof; no Right Certificate shall be issued at any time upon the transfer of any Rights to an
Acquiring Person whose Rights would be null and void pursuant to the preceding sentence or any
Associate or Affiliate thereof or to any nominee of such Acquiring Person, Associate or Affiliate;
and any Right Certificate delivered to the Rights Agent for transfer to an Acquiring Person whose
Rights would be null and void pursuant to the preceding sentence or any Associate or Affiliate
thereof shall be canceled.

          (iii) In the event that the number of Common Shares which are authorized by the Company’s
certificate of incorporation and not outstanding or subscribed for, or reserved or otherwise
committed for issuance for purposes other than upon exercise of the Rights, are not sufficient to
permit the holder of each Right to purchase the number of Common Shares to which he would be
entitled upon the exercise in full of the Rights in accordance with the foregoing subparagraph (ii)
of paragraph (a) of this Section 11, or should the Board of Directors so elect, the Company shall:
(A) determine the excess of (1) the value of the Common Shares issuable upon the exercise of a
Right (calculated as provided in the last sentence of this subparagraph (iii)) pursuant to Section
11(a)(ii) hereof (the “Current Value”) over (2) the Purchase Price (such excess, the “Spread”), and
(B) with respect to each Right, make adequate provision to substitute for such Common Shares, upon
payment of the applicable Purchase Price, any one or more of the following having an aggregate
value determined by the Board of Directors to be equal to the Current Value: (1) cash, (2) a
reduction in the Purchase Price, (3)

-20-

 

Common Shares or other equity securities of the Company (including, without limitation,
shares, or units of shares, of preferred stock which the Board of Directors of the Company has
determined to have the same value as Common Shares (such shares or units of shares of preferred
stock, “common stock equivalents”)), (4) debt securities of the Company, or (5) other assets;
provided, however, if the Company shall not have made adequate provision to deliver
value pursuant to clause (B) above within thirty (30) days following the first occurrence of an
event triggering the rights to purchase Common Shares described in Section 11(a)(ii) (the “Section
11(a)(ii) Trigger Date”), then the Company shall be obligated to deliver, upon the surrender for
exercise of a Right and without requiring payment of the Purchase Price, Common Shares (to the
extent available) and then, if necessary, cash, which shares and cash have an aggregate value equal
to the Spread. If the Board of Directors of the Company shall determine in good faith that it is
likely that sufficient additional Common Shares could be authorized for issuance upon exercise in
full of the Rights, the thirty (30) day period set forth above may be extended 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 stockholder approval for the authorization of such additional shares
(such period, as it may be extended, the “Substitution Period”). To the extent that the Company
determines that some action need be taken pursuant to the first and/or second sentences of this
Section 11(a)(iii), the Company (x) shall provide, subject to Section 7(e) hereof and the last
paragraph of Section 11(a)(ii) 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 first sentence and to determine the
value thereof. In the event of any such suspension, the Company shall make a public

-21-

 

announcement, and shall deliver to the Rights Agent a statement, stating that the
exercisability of the Rights has been temporarily suspended. At such time as the suspension is no
longer in effect, the Company shall make another public announcement, and deliver to the Rights
Agent a statement, so stating. For purposes of this Section 11(a)(iii), the value of the Common
Shares shall be the current per share market price (as determined pursuant to Section 11(d)(i)
hereof) of the Common Shares on the Section 11(a)(ii) Trigger Date and the value of any common
stock equivalent shall be deemed to have the same value as the Common Shares on such date.

     (b) In case the Company shall fix a record date for the issuance of rights, options or
warrants to all holders of Preferred Shares entitling them (for a period expiring within 45
calendar days after such record date) to subscribe for or purchase Preferred Shares (or shares
entitled to the same rights, privileges and preferences as the Preferred Shares (“equivalent
preferred shares”)) or securities convertible into Preferred Shares or equivalent preferred shares
at a price per Preferred Share or equivalent preferred share (or having a conversion price per
share, if a security convertible into Preferred Shares or equivalent preferred shares) less than
the then current per share market price of the Preferred Shares (as defined in Section 11(d)) on
such record date, the Purchase Price to be in effect after such record date shall be adjusted by
multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the
numerator of which shall be the number of Preferred Shares outstanding on such record date plus the
number of Preferred Shares which the aggregate offering price of the total number of Preferred
Shares and/or equivalent preferred shares so to be offered (and/or the aggregate initial conversion
price of the convertible securities so to be offered) would purchase at such current market price
and the denominator of which shall be the number of Preferred Shares outstanding on such record
date plus the number of additional Preferred Shares and/or equivalent preferred

-22-

 

shares to be offered for subscription or purchase (or into which the convertible securities so
to be offered are initially convertible); provided, however, that in no event shall
the consideration to be paid upon the exercise of one Right be less than the aggregate par value of
the shares of capital stock of the Company issuable upon exercise of one Right. In case such
subscription price may be paid in a consideration part or all of which shall be in a form other
than cash, the value of such consideration shall be as determined in good faith by the Board of
Directors of the Company, whose determination shall be described in a written statement filed with
the Rights Agent. Preferred Shares 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) In case the Company shall, at any time after the date of this Agreement, fix a record date
for the making of a distribution to all holders of the Preferred Shares (including any such
distribution made in connection with a consolidation or merger in which the Company is the
continuing or surviving corporation) of evidences of indebtedness or assets (other than a regular
quarterly cash dividend or a dividend payable in Preferred Shares) or subscription rights or
warrants (excluding those referred to in Section 11(b) hereof), the Purchase Price to be in effect
after such record date shall be determined by multiplying the Purchase Price in effect immediately
prior to such record date by a fraction, the numerator of which shall be the then current per share
market price of the Preferred Shares on such record date, less the fair market value (as determined
in good faith by the Board of Directors of the Company, whose determination shall be described in a
written statement filed with the Rights Agent) of the

-23-

 

portion of the assets or evidences of indebtedness so to be distributed or of such
subscription rights or warrants applicable to one Preferred Share and the denominator of which
shall be such current per share market price of the Preferred Shares; provided,
however, that in no event shall the consideration to be paid upon the exercise of one Right
be less than the aggregate par value of the shares of capital stock of the Company to be issued
upon exercise of one Right. Such adjustments shall be made successively whenever such a record
date is fixed; and in the event that such distribution is not so made, the Purchase Price shall
again be adjusted to be the Purchase Price which would then be in effect if such record date had
not been fixed.

     (d)

          (i) For the purpose of any computation hereunder, the “current per share market price” of any
security (a “Security” for the purpose of this Section 11(d)(i)) on any date shall be deemed to be
the average of the daily closing prices per share of such Security for the 30 consecutive Trading
Days (as such term is hereinafter defined) 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, or (B) any subdivision, combination or reclassification of such
Security and prior to the expiration of 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 reflect the current market price per share equivalent of such Security.
The closing price for each day shall be the last sale price, regular way, or, in case no such sale
takes place on such day, the average of the closing bid and asked

-24-

 

prices, regular way, in either case as reported in the principal consolidated transaction
reporting system with respect to securities listed or admitted to trading on the New York Stock
Exchange or, if the Security is not listed or admitted to trading on the New York Stock Exchange,
as reported in the principal consolidated transaction reporting system with respect to securities
listed on the principal national securities exchange on which the Security is listed or admitted to
trading or, if the Security is not listed or admitted to trading on any national securities
exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked
prices in the over-the-counter market, as reported by the National Association of Securities
Dealers, Inc. Automated Quotations System (“NASDAQ”) or such other system then in use, or, if on
any such date the Security is not quoted by any such organization, the average of the closing bid
and asked prices as furnished by a professional market maker making a market in the Security
selected by the Board of Directors of the Company. The term “Trading Day” shall mean a day on
which the principal national securities exchange on which the Security is listed or admitted to
trading is open for the transaction of business or, if the Security is not listed or admitted to
trading on any national securities exchange, a Business Day.

          (ii) For the purpose of any computation hereunder, the “current per share market price” of the
Preferred Shares shall be determined in accordance with the method set forth in Section 11(d)(i).
If the Preferred Shares are not publicly traded, the “current per share market price” of the
Preferred Shares shall be conclusively deemed to be the current per share market price of the
Common Shares as determined pursuant to Section 11(d)(i) (appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date hereof), multiplied by
1,000. If neither the Common Shares nor the Preferred Shares are publicly held or so listed or
traded, “current per share market price” shall mean the

-25-

 

fair value per share as determined in good faith by the Board of Directors of the Company,
whose determination shall be described in a written statement filed with the Rights Agent.

     (e) Anything herein to the contrary notwithstanding, no adjustment in the Purchase Price shall
be required unless such adjustment would require an increase or decrease of at least 1% in the
Purchase Price; 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 ten-millionth of a Preferred Share or one ten-thousandth of any other share or
security as the case may be. Notwithstanding the first sentence of this Section 11(e), any
adjustment required by this Section 11 shall be made no later than three years from the date of the
transaction which requires such adjustment.

     (f) If as a result of an adjustment made pursuant to Section 11(a) hereof, the holder of any
Right thereafter exercised shall become entitled to receive any shares of capital stock of the
Company other than Preferred Shares, the number of such other shares so receivable upon exercise of
any Right shall thereafter be subject to adjustment from time to time in a manner and on terms as
nearly equivalent as practicable to the provisions with respect to the Preferred Shares contained
in Section 11(a) through (d), inclusive, and Section 11(h) through (l), inclusive, and the
provisions of Sections 7, 9, 10, 13 and 14 with respect to the Preferred Shares shall apply on like
terms to any such other shares.

     (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-thousandths of a Preferred Share purchasable from time

-26-

 

to time hereunder upon exercise of the Rights, all subject to further adjustment as provided
herein.

     (h) Unless the Company shall have exercised its election as provided in Section 11(i), upon
each adjustment of the Purchase Price as a result of the calculations made in Sections 11(b) and
(c), each Right outstanding immediately prior to the making of such adjustment shall thereafter
evidence the right to purchase, at the adjusted Purchase Price, that number of one one-thousandths
of a Preferred Share (calculated to the nearest one ten-millionth of a Preferred Share) obtained by
(i) multiplying (x) the number of one one-thousandths of a share covered by a Right immediately
prior to this adjustment by (y) the Purchase Price in effect immediately prior to such adjustment
of the Purchase Price and (ii) dividing the product so obtained by the Purchase Price in effect
immediately after such adjustment of the Purchase Price.

     (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-thousandths
of a Preferred Share purchasable upon the exercise of a Right. Each of the Rights outstanding
after such adjustment of the number of Rights shall be exercisable for the number of one
one-thousandths of a Preferred Share for which a Right was exercisable immediately prior to such
adjustment. Each Right held of record prior to such adjustment of the number of Rights shall
become that number of Rights (calculated to the nearest one 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 (with prompt written
notice thereof to the Rights Agent), indicating the record date for the adjustment, and, if known
at the time, the amount of the adjustment to be made. This record date

-27-

 

may be the date on which the Purchase Price is adjusted or any day thereafter, but, if the
Right Certificates have been distributed, shall be at least 10 days later than the date of the
public announcement. If Right Certificates have been distributed, 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 Right Certificates on such record date Right
Certificates evidencing, subject to Section 14 hereof, the additional Rights to which such holders
shall be entitled as a result of such adjustment, or, at the option of the Company, shall cause to
be distributed to such holders of record in substitution and replacement for the Right Certificates
held by such holders prior to the date of adjustment, and upon surrender thereof, if required by
the Company, new Right Certificates evidencing all the Rights to which such holders shall be
entitled after such adjustment. Right Certificates to be so distributed shall be issued, executed
and countersigned in the manner provided for herein and shall be registered in the names of the
holders of record of Right Certificates on the record date specified in the public announcement.

     (j) Irrespective of any adjustment or change in the Purchase Price or the number of one
one-thousandths of a Preferred Share issuable upon the exercise of the Rights, the Right
Certificates theretofore and thereafter issued may continue to express the Purchase Price and the
number of one one-thousandths of a Preferred Share which were expressed in the initial Right
Certificates issued hereunder.

     (k) Before taking any action that would cause an adjustment reducing the Purchase Price below
one one-thousandth of the then par value of the Preferred Shares 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 non-assessable
Preferred Shares at such adjusted Purchase Price.

-28-

 

     (l) In any case in which this Section 11 shall require that an adjustment in the Purchase
Price be made effective as of a record date for a specified event, the Company may elect to defer
until the occurrence of such event the issuing to the holder of any Right exercised after such
record date of the Preferred Shares and other capital stock or securities of the Company, if any,
issuable upon such exercise over and above the Preferred Shares and other capital stock or
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 shall
deliver to such holder a due bill or other appropriate instrument evidencing such holder’s right to
receive such additional shares (fractional or otherwise) upon the occurrence of the event requiring
such adjustment.

     (m) Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled
to make such reductions in the Purchase Price, in addition to those adjustments expressly required
by this Section 11, as and to the extent that it in its sole discretion shall determine to be
advisable in order that any (i) combination or subdivision of the Preferred Shares, (ii) issuance
wholly for cash of any Preferred Shares at less than the current market price, (iii) issuance
wholly for cash of Preferred Shares or securities which by their terms are convertible into or
exchangeable for Preferred Shares, (iv) dividends on Preferred Shares payable in Preferred Shares
or (v) issuance of any rights, options or warrants referred to hereinabove in Section 11(b),
hereafter made by the Company to holders of its Preferred Shares shall not be taxable to such
stockholders.

     (n) In the event that at any time after the date of this Agreement and prior to the
Distribution Date, the Company shall (i) declare or pay any dividend on the Common Shares payable
in Common Shares or (ii) effect a subdivision, combination or consolidation of the

-29-

 

Common Shares (by reclassification or otherwise other than by payment of dividends in Common
Shares) into a greater or lesser number of Common Shares, then in any such case (i) the number of
one one-thousandths of a Preferred Share purchasable after such event upon proper exercise of each
Right shall be determined by multiplying the number of one one-thousandths of a Preferred Share so
purchasable immediately prior to such event by a fraction, the numerator of which is the number of
Common Shares outstanding immediately before such event and the denominator of which is the number
of Common Shares outstanding immediately after such event, and (ii) each Common Share outstanding
immediately after such event shall have issued with respect to it that number of Rights which each
Common Share outstanding immediately prior to such event had issued with respect to it. The
adjustments provided for in this Section 11(n) shall be made successively whenever such a dividend
is declared or paid or such a subdivision, combination or consolidation is effected.

   Section 12. Certificate of Adjustment.

     Whenever an adjustment is made as provided in Sections 11 and 13 hereof, 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, (b) file with the Rights Agent and with each
transfer agent for the Common Shares or the Preferred Shares a copy of such certificate and (c) if
such adjustment occurs following a Distribution Date, mail a brief summary thereof to each holder
of a Right Certificate in accordance with Section 25 hereof. Notwithstanding the foregoing
sentence, the failure of the Company to make such certification or give such notice shall not
affect the validity of such adjustment or the force or effect of the requirement for such
adjustment. The Rights Agent shall be fully protected in relying on any such certificate and on
any adjustment or statement therein contained and shall have no duty or

-30-

 

liability with respect to and shall not be deemed to have knowledge of such an adjustment
or event unless and until it shall have received such certificate.

   Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power.

     In the event that, at any time after a Person becomes an Acquiring Person, directly or
indirectly, (i) the Company shall consolidate with, or merge with and into, any other Person, (ii)
any Person shall consolidate with the Company, or merge with and into the Company and the Company
shall be the continuing or surviving corporation of such merger and, in connection with such
merger, all or part of the Common Shares shall be changed into or exchanged for stock or other
securities of any other Person (or the Company) or cash or any other property, or (iii) the Company
shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise
transfer), in one or more transactions, assets or earning power aggregating 50% or more of the
assets or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person
or Persons other than the Company or one or more of its wholly-owned Subsidiaries, then, and in
each such case, proper provision shall be made so that (A) each holder of a Right (except as
otherwise provided herein) shall thereafter have the right to receive, upon the exercise thereof at
a price equal to the then current Purchase Price multiplied by the number of one one-thousandths of
a Preferred Share for which a Right is then exercisable, in accordance with the terms of this
Agreement and in lieu of Preferred Shares, such number of Common Shares of such other Person
(including the Company as successor thereto or as the surviving corporation) as shall equal the
result obtained by (x) multiplying the then current Purchase Price by the number of one
one-thousandths of a Preferred Share for which a Right is then exercisable and dividing that
product by (y) 50% of the then current per share market price of the Common Shares of such other
Person (determined pursuant to Section 11(d) hereof) on the date of

-31-

 

consummation of such consolidation, merger, sale or transfer; (B) the issuer of such Common
Shares shall thereafter be liable for, and shall assume, by virtue of such consolidation, merger,
sale or transfer, all the obligations and duties of the Company pursuant to this Agreement; (C) the
term “Company” shall thereafter be deemed to refer to such issuer; and (D) such issuer shall take
such steps (including, but not limited to, the reservation of a sufficient number of its Common
Shares to permit the exercise of Rights in full for such Common Shares, in accordance with Section
9 hereof) in connection with such consummation as may be necessary to assure that the provisions
hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to the Common
Shares thereafter deliverable upon the exercise of the Rights. The Company covenants and agrees
that it shall not consummate any such consolidation, merger, sale or transfer unless prior thereto
the Company and such issuer shall have executed and delivered to the Rights Agent a supplemental
agreement so providing. The Company shall not enter into any transaction of the kind referred to
in this Section 13 if at the time of such transaction there are any rights, warrants, instruments
or securities outstanding or any agreements or arrangements which, as a result of the consummation
of such transaction, would eliminate or substantially diminish the benefits intended to be afforded
by the Rights. The provisions of this Section 13 shall similarly apply to successive mergers or
consolidations or sales or other transfers. For purposes hereof, the “earning power” of the
Company and its Subsidiaries shall be determined in good faith by the Company’s Board of Directors
on the basis of the operating earnings of each business operated by the Company and its
Subsidiaries during the three fiscal years preceding the date of such determination (or, in the
case of any business not operated by the Company or any Subsidiary during three full fiscal years
preceding such date, during the period such business was operated by the Company or any
Subsidiary).

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   Section 14. Fractional Rights and Fractional Shares.

     (a) The Company shall not be required to issue fractions of Rights or to distribute Right
Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall be
paid to the registered holders of the Right Certificates with regard to which such fractional
Rights would otherwise be issuable, an amount in cash equal to the same fraction of the current
market value of a whole Right. For the purposes of this Section 14(a), the current market value of
a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to the
date on which such fractional Rights would have been otherwise issuable. The closing price for any
day shall be the last sale price, regular way, or, in case no such sale takes place on such day,
the average of the closing bid and asked prices, regular way, in either case as reported in the
principal consolidated transaction reporting system with respect to securities listed or admitted
to trading on the New York Stock Exchange or, if the Rights are not listed or admitted to trading
on the New York Stock Exchange, as reported in the principal consolidated transaction reporting
system with respect to securities listed on the principal national securities exchange on which the
Rights are listed or admitted to trading or, if the Rights are not listed or admitted to trading on
any national securities exchange, the last quoted price or, if not so quoted, the average of the
high bid and low asked prices in the over-the-counter market, as reported by NASDAQ or such other
system then in use or, if on any such date the Rights are not quoted by any such organization, the
average of the closing bid and asked prices as furnished by a professional market maker making a
market in the Rights selected by the Board of Directors of the Company. If on any such date no
such market maker is making a market in the Rights, the fair value of the Rights on such date as
determined in good faith by the Board of Directors of the Company shall be used.

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     (b) The Company shall not be required to issue fractions of Preferred Shares (other than
fractions which are integral multiples of one one-thousandth (subject to appropriate adjustment in
the case of a subdivision or combination) of a Preferred Share) upon exercise of the Rights or to
distribute certificates which evidence fractional Preferred Shares (other than fractions which are
integral multiples of one one-thousandth of a Preferred Share). Fractions of Preferred Shares in
integral multiples of one one-thousandth of a Preferred Share may, at the election of the Company,
be evidenced by depositary receipts, pursuant to an appropriate agreement between the Company and a
depositary selected by it; provided, that such agreement shall provide that the holders of
such depositary receipts shall have all the rights, privileges and preferences to which they are
entitled as beneficial owners of the Preferred Shares represented by such depositary receipts. In
lieu of fractional Preferred Shares that are not integral multiples of one one-thousandth of a
Preferred Share, the Company shall pay to each registered holder of Right 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 Preferred Share as the fraction of one Preferred Share that such holder
would otherwise receive upon the exercise of the aggregate number of rights exercised by such
holder. For the purposes of this Section 14(b), the current market value of a Preferred Share
shall be the closing price of a Preferred Share (as determined pursuant to the second sentence of
Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of such exercise.

     (c) The holder of a Right by the acceptance of the Right expressly waives any right to receive
fractional Rights or fractional shares upon exercise of a Right (except as provided above).

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     (d) Whenever a payment for fractional Rights or fractional shares is to be made by the Rights
Agent, the Company shall (i) promptly prepare and deliver to the Rights Agent a certificate setting
forth in reasonable detail the facts related to such payments and the prices and/or formulas
utilized in calculating such payments, and (ii) provide sufficient monies to the Rights Agent in
the form of fully collected funds to make such payments. The Rights Agent shall be fully protected
in relying upon such a certificate and shall have no duty with respect to, and shall not be deemed
to have knowledge of any payment for fractional Rights or fractional shares under any Section of
this Agreement relating to the payment of fractional Rights or fractional shares unless and until
the Rights Agent shall have received such a certificate and sufficient monies.

   Section 15. Rights of Action.

     (a) All rights of action in respect of this Agreement, excepting the rights of action given to
the Rights Agent under Section 18 and Section 20 hereof, are vested in the respective registered
holders of the Right Certificates (and, prior to the Distribution Date, the registered holders of
the Common Shares); and any registered holder of any Right Certificate (or, prior to the
Distribution Date, of the Common Shares) may, without the consent of the Rights Agent or of the
holder of any other Right Certificate (or, prior to the Distribution Date, of the Common Shares),
on his own behalf and for his own benefit, enforce, and may institute and maintain any suit, action
or proceeding against the Company to enforce, or otherwise act in respect of, his right to exercise
the Rights evidenced by such Right Certificate in the manner provided in such Right Certificate and
in this Agreement. Without limiting the foregoing or any remedies available to the holders of
Rights, it is specifically acknowledged that the holders of Rights would not have an adequate
remedy at law for any breach of this Agreement and will be

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entitled to specific performance of the obligations under, and injunctive relief against
actual or threatened violations of the obligations 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 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.

   Section 16. Agreement of Right Holders.

     Every holder of a Right, by accepting the same, consents and agrees with the Company and the
Rights Agent and with every other holder of a Right that:

     (a) prior to the Distribution Date, the Rights will be transferable only in connection with
the transfer of the Common Shares;

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

     (c) Subject to Sections 6 and 7(e) hereof, the Company and the Rights Agent may deem and treat
the person in whose name the Right Certificate (or, prior to the Distribution Date, the associated
Common Shares certificate) is registered as the absolute owner thereof and of the Rights evidenced
thereby (notwithstanding any notations of ownership or writing on the Right Certificates or the
associated Common Shares certificate made by anyone other than the

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Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the
Rights Agent shall be affected by any notice to the contrary.

   Section 17. Right Certificate Holder Not Deemed a Stockholder.

     No holder, as such, of any Right Certificate shall be entitled to vote, receive dividends or
be deemed for any purpose the holder of the Preferred Shares or any other securities of the Company
which may at any time be issuable on the exercise of the Rights represented thereby nor shall
anything contained herein or in any Right Certificate be construed to confer upon the holder of any
Right Certificate, as such, any of the rights of a stockholder of the Company or any right to vote
for the election of directors or upon any matter submitted to stockholders at any meeting thereof,
or to give or withhold consent to any corporate action, or to receive notice of meetings or other
actions affecting stockholders (except as provided in Section 25 hereof), or to receive dividends
or subscription rights, or otherwise, until the Right or Rights evidenced by such Right Certificate
shall have been exercised in accordance with the provisions hereof.

   Section 18. Concerning the Rights Agent.

     The Company agrees to pay to the Rights Agent reasonable compensation for all services
rendered by it hereunder 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,
delivery, execution and amendment 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, settlement, cost or
expense (including, without limitation, the reasonable fees and expenses of legal counsel),
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

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determined by a final order, judgment, decree or ruling of a court of competent jurisdiction
that is not subject to appeal or with respect to which the time for appeal has lapsed) for any
action taken, suffered or omitted by the Rights Agent in connection with the acceptance, exercise,
performance or administration of its duties under this Agreement, including, without limitation,
the costs and expenses of defending against any claim of liability in the premises. The provisions
of this Section 18 and Section 20 below shall survive the termination of this Agreement, the
exercise or expiration of the Rights and the resignation, replacement or removal of the Rights
Agent. The costs and expenses incurred by the Rights Agent in enforcing this right of
indemnification shall also be paid by the Company.

     The Rights Agent may conclusively rely upon and shall be authorized and protected and
shall incur no liability for or in respect of any action taken, suffered or omitted by it in
connection with its administration of this Agreement or the exercise of its duties hereunder in
reliance upon any Right Certificate or certificate for Preferred Shares or Common Stock or for
other securities of the Company, 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 20 hereof. 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 the event the Company takes any action under the
Agreement, makes any election under the Agreement, makes any adjustment under the Agreement,
suspends the exercisability of a Right, announces a redemption, gives

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public notice of any exchange, or gives notice to the Right Holders under this Agreement, the
Rights Agent shall not be deemed to have knowledge of such occurrence or of any information
contained in any such notice unless and until it has received written notice thereof from the
Company.

   Section 19. Merger or Consolidation or Change of Name of Rights Agent.

     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 shall be a party, or any Person succeeding to the
corporate trust business of the Rights Agent or any successor Rights Agent, shall be the successor
to the Rights Agent under this Agreement without the execution or filing of any paper or any
further act on the part of any of the parties hereto, provided that such Person would be eligible
for appointment as a successor Rights Agent under the provisions of Section 21 hereof. In case at
the time such successor Rights Agent shall succeed to the agency created by this Agreement, any of
the Right Certificates shall have been countersigned but not delivered, any such successor Rights
Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Right
Certificates so countersigned; and in case at that time any of the Right Certificates shall not
have been countersigned, any successor Rights Agent may countersign such Right Certificates either
in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in
all such cases such Right Certificates shall have the full force provided in the Right Certificates
and in this Agreement.

     In case at any time the name of the Rights Agent shall be changed and at such time any of the
Right Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the
countersignature under its prior name and deliver Right Certificates so

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countersigned; and in case at that time any of the Right Certificates shall not have been
countersigned, the Rights Agent may countersign such Right Certificates either in its prior name or
in its changed name; and in all such cases such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement.

   Section 20. Duties of Rights Agent.

     The Rights Agent undertakes to perform only the duties and obligations expressly set forth in
this Agreement and no implied duties or obligations shall be read into this Agreement against the
Rights Agent. The Rights Agent shall perform those duties and obligations upon the following terms
and conditions, by all of which the Company and the holders of Right Certificates, by their
acceptance thereof, shall be bound:

     (a) Before the Rights Agent acts or refrains from acting, it may consult with legal counsel
(who may be legal counsel for the Company or any employee of the Rights Agent), 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 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) be proved or established by the Company prior to taking, suffering or
omitting any action hereunder, such fact or matter (unless other evidence in respect thereof be
herein specifically prescribed) may be deemed to be conclusively proved and established by a
certificate signed by any one of the Chairman of the Board, the Chief Executive Officer, the
President, any Vice President, the Treasurer, or the Secretary of the Company and delivered to the
Rights Agent; and such certificate shall be full and complete authorization and protection to the
Rights Agent and the Rights Agent shall incur no liability for

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or in respect of any action taken, suffered or omitted by it under the provisions of this
Agreement in reliance upon such certificate.

     (c) The Rights Agent shall be liable hereunder to the Company and any other Person 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 order, judgment, decree or ruling of a court of
competent jurisdiction that is not subject to appeal or with respect to which the time for appeal
has lapsed). Anything to the contrary notwithstanding, in no event shall the Rights Agent be
liable for special, punitive, indirect, consequential or incidental loss or damage 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. Any and all liability of the Rights Agent under this
Agreement will be limited to the amount of annual fees paid by the Company to the Rights Agent
pursuant to this Agreement.

     (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 Right Certificates (except as to its
countersignature thereof) or be required to verify the same, but all such statements and recitals
are and shall be deemed to have been made by the Company only.

     (e) The Rights Agent shall not have any liability for or be under any responsibility in
respect of the validity of this Agreement or the execution and delivery hereof (except the due
execution hereof by the Rights Agent) or in respect of the validity or execution of any Right
Certificate (except its countersignature thereof); nor shall it be responsible for any breach by
the Company of any covenant or condition contained in this Agreement or in any Right Certificate;
nor shall it be responsible for any adjustment in the terms of the Rights (including the manner,
method or amount thereof) provided for under the provisions of Sections

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3, 11, 13, 23 or 24 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 Right Certificates after actual notice
of any such adjustment upon which the Rights Agent may rely); 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 Preferred Shares to be issued pursuant to this Agreement or any Right Certificate or as to
whether any Preferred Shares will, when so issued, be validly authorized and issued, fully paid and
nonassessable.

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

     (g) The Rights Agent is hereby authorized and directed to accept written instructions with
respect to the performance of its duties hereunder from any one of the Chairman of the Board, the
Chief Executive Officer, the President, a Vice President, the Secretary or the Treasurer of the
Company, and to apply to such officers for advice or instructions in connection with its duties and
such instructions shall be full authorization and protection to the Rights Agent, and the Rights
Agent shall not be liable for any action taken, suffered or omitted by it in accordance with
instructions of any such officer or for any delay in acting while waiting for 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, suffered or omitted by the
Rights Agent under this Agreement and the date on or after which such action shall be taken or such
omission shall be effective. The

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Rights Agent shall not be liable for any action taken or suffered 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 ten Business Days after the date
any officer of the Company actually receives such application, unless any such officer shall have
consented in writing to an earlier date) unless, prior to taking, suffering or omitting any such
action (or the effective date in the case of an omission), the Rights Agent shall have received, in
response to such application, written instructions with respect to the proposed action or omission
specifying a different action to be taken, suffered or omitted.

     (h) The Rights Agent and any stockholder, Affiliate, 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 and employees) or by
or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for
any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the
Company or any other Person resulting from any such act, default, neglect or misconduct, absent
gross negligence, bad faith or willful misconduct in the selection and continued employment thereof
(which gross negligence, bad faith or willful misconduct must be determined by a final order,
judgment, decree or ruling of a court of competent jurisdiction that is not subject to appeal or
with respect to which the time for appeal has lapsed).

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     (j) 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 it believes that repayment of such funds or adequate
indemnification against such risk or liability is not reasonably assured to it.

     (k) The Rights Agent shall not be required to take notice or be deemed to have notice of any
fact, event or determination (including, without limitation, any dates or events defined in this
Agreement or the designation of any Person as an Acquiring Person, Affiliate or Associate) under
this Agreement unless and until the Rights Agent shall be specifically notified in writing by the
Company of such fact, event or determination.

     (l) If, with respect to any Right Certificate surrendered to the Rights Agent for exercise or
transfer, the certificate attached to the form of assignment or form of election to purchase, as
the case may be, has either not been completed or indicates an affirmative response to clause 1
and/or 2 thereof, the Rights Agent shall not take any further action with respect to such requested
exercise or transfer without first consulting with the Company.

   Section 21. Change of Rights Agent.

     The Rights Agent or any successor Rights Agent may resign and be discharged from its duties
under this Agreement upon 30 days’ notice in writing mailed to the Company and to each transfer
agent of the Common Shares and the Preferred Shares known to the Rights Agent by registered or
certified mail and, subsequent to the Distribution Date, to the holders of Rights certification by
first-class mail. The Company may remove the Rights Agent or any successor Rights Agent upon 30
days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be,
and to each transfer agent of the Common Shares and the Preferred Shares by registered or certified
mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of
acting, the Company shall appoint a successor to the

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Rights Agent. If the Company shall fail to make such appointment within a period of 30 days
after giving notice of such removal or after it has been notified in writing of such resignation or
incapacity by the resigning or incapacitated Rights Agent or by the holder of a Right Certificate
(who shall, with such notice, submit his or her or its Right Certificate for inspection by the
Company), then the registered holder of any Right Certificate may apply to any court of competent
jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether
appointed by the Company or by such a court, shall be (i) a Person organized and doing business
under the laws of the United States or of any state of the United States, in good standing, which
is authorized under such laws to exercise corporate trust powers or stock transfer powers and is
subject to supervision or examination by federal or state authority and which has at the time of
its appointment as Rights Agent a combined capital and surplus of at least $50 million, or (ii) an
Affiliate of such Person. After appointment, the successor Rights Agent shall be vested with the
same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent
without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the
successor Rights Agent any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective
date of any such appointment the Company shall file notice thereof in writing with the predecessor
Rights Agent and each transfer agent of the Common Shares and the Preferred Shares. Failure to
give any notice provided for in this Section 21, however, or any defect therein, shall not affect
the legality or validity of the resignation or removal of the Rights Agent or the appointment of
the successor Rights Agent, as the case may be.

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   Section 22. Issuance of New Right Certificates.

     Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the
Company may, at its option, issue new Right Certificates evidencing Rights in such form as may be
approved by its Board of Directors to reflect any adjustment or change in the Purchase Price and
the number or kind or class of shares or other securities or property purchasable under the Right
Certificates made in accordance with the provisions of this Agreement. In addition, in connection
with the issuance or sale of Common Stock following the Distribution Date and prior to the earlier
of the Redemption Date and the Close of Business on the Final Expiration Date, the Company may with
respect to shares of Common Stock so issued or sold pursuant to (i) the exercise of stock options,
(ii) under any employment plan or arrangement, (iii) upon the exercise, conversion or exchange of
securities, notes or debentures issued by the Company or (iv) a contractual obligation of the
Company, in each case existing prior to the Distribution Date, issue Right Certificates
representing the appropriate number of Rights in connection with such issuance or sale.

   Section 23. Redemption.

     (a) The Board of Directors of the Company may, at its option, at any time prior to such time
as any Person becomes an Acquiring Person, redeem all but not less than all the then outstanding
Rights at a redemption price of $0.001 per Right, appropriately adjusted to reflect any stock
split, stock dividend or similar transaction occurring after the date hereof (such redemption price
being hereinafter referred to as the “Redemption Price”). The redemption of the Rights by the
Board of Directors may be made effective at such time, on such basis and subject to such conditions
as the Board of Directors in its sole discretion may establish.

     (b) Immediately upon the time of the effectiveness of the redemption of the Rights pursuant to
paragraph (a) of this Section 23 or such earlier time as may be determined by

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the Board of Directors of the Company in the action ordering such redemption (although not
earlier than the time of such action) (such time the “Redemption Date”), 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. The Company shall
promptly give public notice of any such redemption; provided, however, that the
failure to give, or any defect in, any such notice shall not affect the validity of such
redemption. Within 10 days after such action of the Board of Directors ordering the redemption of
the Rights pursuant to paragraph (a), the Company shall mail a notice of redemption to all the
holders of the then outstanding Rights at their last addresses as they appear upon the registry
books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer
agent for the Common Shares. Any notice which is mailed in the manner herein provided shall be
deemed given, whether or not the holder receives the notice. If the payment of the Redemption
Price is not included with such notice, each such notice shall state the method by which the
payment of the Redemption Price will be made. Neither the Company nor any of its Affiliates or
Associates may redeem, acquire or purchase for value any Rights at any time in any manner other
than that specifically set forth in this Section 23 or in Section 24 hereof, other than in
connection with the purchase of Common Shares prior to the Distribution Date.

   Section 24. Exchange.

     (a) The Board of Directors of the Company may, at its option, at any time after any Person
becomes an Acquiring Person, exchange all or part of the then outstanding and exercisable Rights
(which shall not include Rights that have become null and void pursuant to the provisions of
Section 11(a)(ii) hereof) for Common Shares at an exchange ratio of one Common Share per Right
(such exchange ratio being hereinafter referred to as the “Exchange Ratio”). Notwithstanding the
foregoing, the Board of Directors shall not be empowered to effect

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such exchange at any time after any Person (other than the Company, any Subsidiary of the
Company, any employee benefit plan of the Company or any such Subsidiary, or any entity holding
Common Shares for or pursuant to the terms of any such plan), together with all Affiliates and
Associates of such Person, becomes the Beneficial Owner of a majority of the Common Shares then
outstanding.

     (b) Immediately upon the action of the Board of Directors of the Company ordering the exchange
of any Rights pursuant to subsection (a) of this Section 24 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 Common Shares 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 promptly
shall mail a notice of any such exchange to all of the holders of such Rights at their last
addresses as they appear upon the registry books of the Rights Agent. Any notice which is mailed
in the manner herein provided shall be deemed given, whether or not the holder receives the notice.
Each such notice of exchange will state the method by which the exchange of the Common Shares for
Rights will be effected and, in the event of any partial exchange, the number of Rights which will
be exchanged. Any partial exchange shall be effected pro rata based on the number
of Rights (other than Rights which have become null and void pursuant to the provisions of
Section 11(a)(ii) hereof) held by each holder of Rights.

     (c) In any exchange pursuant to this Section 24, the Company, at its option, may substitute
Preferred Shares or common stock equivalents for Common Shares exchangeable for Rights, at the
initial rate of one one-thousandth of a Preferred Share (or an appropriate

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number of common stock equivalents) for each Common Share, as appropriately adjusted to
reflect adjustments in the voting rights of the Preferred Shares pursuant to the terms thereof, so
that the fraction of a Preferred Share delivered in lieu of each Common Share shall have the same
voting rights as one Common Share.

     (d) In the event that there shall not be sufficient Common Shares, Preferred Shares or common
stock equivalents authorized by the Company’s certificate of incorporation and not outstanding or
subscribed for, or reserved or otherwise committed for issuance for purposes other than upon
exercise of Rights, to permit any exchange of Rights as contemplated in accordance with this
Section 24, the Company shall take all such action as may be necessary to authorize additional
Common Shares, Preferred Shares or common stock equivalents for issuance upon exchange of the
Rights.

     (e) The Company shall not be required to issue fractions of Common Shares or to distribute
certificates which evidence fractional Common Shares. In lieu of such fractional Common Shares,
the Company shall pay to the registered holders of the Right Certificates with regard to which such
fractional Common Shares would otherwise be issuable an amount in cash equal to the same fraction
of the current per share market value of a whole Common Share. For the purposes of this paragraph
(e), the current per share market value of a whole Common Share shall be the closing price of a
Common Share (as determined pursuant to the second sentence of Section 11(d)(i) hereof) for the
Trading Day immediately prior to the date of exchange pursuant to this Section 24.

   Section 25. Notice of Certain Events.

     (a) In case the Company shall after the Distribution Date propose (i) to pay any dividend
payable in stock of any class to the holders of its Preferred Shares or to make any other
distribution to the holders of its Preferred Shares (other than a regular quarterly cash

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dividend), (ii) to offer to the holders of its Preferred Shares rights or warrants to
subscribe for or to purchase any additional Preferred Shares or shares of stock of any class or any
other securities, rights or options, (iii) to effect any reclassification of its Preferred Shares
(other than a reclassification involving only the subdivision of outstanding Preferred Shares),
(iv) to effect any consolidation or merger into or with, or to effect any sale or other transfer
(or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one or more
transactions, of 50% or more of the assets or earning power of the Company and its Subsidiaries
(taken as a whole) to, any other Person, (v) to effect the liquidation, dissolution or winding up
of the Company, or (vi) to declare or pay any dividend on the Common Shares payable in Common
Shares or to effect a subdivision, combination or consolidation of the Common Shares (by
reclassification or otherwise than by payment of dividends in Common Shares), then, in each such
case, the Company shall give to the Rights Agent and each holder of a Right Certificate, in
accordance with Section 26 hereof, a written notice of such proposed action, which shall specify
the record date for the purposes of such stock dividend, or distribution of rights or warrants, or
the date on which such reclassification, consolidation, merger, sale, transfer, liquidation,
dissolution, or winding up is to take place and the date of participation therein by the holders of
the Common Shares and/or Preferred Shares, if any such date is to be fixed, and such notice shall
be so given in the case of any action covered by clause (i) or (ii) above at least 10 days prior to
the record date for determining holders of the Preferred Shares for purposes of such action, and in
the case of any such other action, at least 10 days prior to the date of the taking of such
proposed action or the date of participation therein by the holders of the Common Shares and/or
Preferred Shares, whichever shall be the earlier.

-50-

 

     (b) In case any event set forth in Section 11(a)(ii) hereof shall occur, then the Company
shall as soon as practicable thereafter give to each holder of a Right Certificate, in accordance
with Section 26 hereof, a notice of the occurrence of such event, which notice shall describe such
event and the consequences of such event to holders of Rights under Section 11(a)(ii) hereof.

   Section 26. Notices.

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

Bill Barrett Corporation

1099 18th Street

Suite 2300

Denver, CO 80202

Facsimile No.: (303) 291-0420

Attention: Secretary

Subject to the provisions of Section 21 hereof, any notice or demand authorized by this Agreement
to be given or made by the Company or by the holder of any Right Certificate to or on the Rights
Agent shall be sufficiently given or made if sent by registered or certified mail and shall be
deemed given upon receipt and, addressed (until another address is filed in writing with the
Company) or by facsimile transmission as follows:

Mellon Investor Services LLC

9235 Montgomery Street, 23rd Floor

San Francisco, California 94104

Facsimile No.: (415) 989-5241

Attention: Relationship Manager

Notices or demands authorized by this Agreement to be given or made by the Company or the Rights
Agent to the holder of any Right Certificate shall be sufficiently given or made if sent by

-51-

 

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 27. Supplements and Amendments.

     The Company may from time to time, and the Rights Agent shall, if the Company so directs,
supplement or amend this Agreement without the approval of any holders of Right Certificates, in
order to cure any ambiguity, to correct or supplement any provision contained herein which may be
defective or inconsistent with any other provisions herein, or to make any change to or delete any
provision hereof or to adopt any other provisions with respect to the Rights which the Company may
deem necessary or desirable; provided, however, that from and after such time as
any Person becomes an Acquiring Person, this Agreement shall not be amended or supplemented in any
manner which would adversely affect the interests of the holders of Rights (other than an Acquiring
Person and its Affiliates and Associates). Upon the delivery of a certificate from an appropriate
officer of the Company that states that the proposed supplement or amendment is in compliance with
the terms of this Section 27, and provided that such supplement or amendment does not affect the
Rights Agent’s rights, duties, liabilities, immunities or obligations, the Rights Agent shall
execute such supplement or amendment. Notwithstanding anything in this Agreement to the
contrary, no supplement or amendment that changes the rights and duties of the Rights Agent under
this Agreement will be effective against the Rights Agent without the execution of such supplement
or amendment by the Rights Agent.

   Section 28. Successors.

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

-52-

 

   Section 29. Benefits of this Agreement.

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

   Section 30. Severability.

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

   Section 31. Governing Law.

     This Agreement and each Right Certificate issued hereunder shall be deemed to be a contract
made under the laws of the State of Delaware and for all purposes shall be governed by and
construed in accordance with the laws of such State applicable to contracts to be made and
performed entirely within such State; provided, however, that all provisions regarding the rights,
duties, liabilities and obligations of the Rights Agent shall be governed by and construed in
accordance with the laws of the State of New York 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.

-53-

 

   Section 33. Descriptive Headings.

     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.

   Section 34. Administration.

     The Board of Directors of the Company, or any Committee of the Board of Directors designated
by the Board of Directors, shall have the exclusive power and authority to administer this
Agreement and to exercise all rights and powers specifically granted to the Board of Directors, or
the Company, or as may be necessary or advisable in the administration of this Agreement,
including, without limitation, the right and power (i) to interpret the provisions of this
Agreement, and (ii) to make all determinations and calculations deemed necessary or advisable for
the administration of this Agreement (including a determination to redeem or not redeem the Rights
or to amend the Agreement). 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 in good faith shall (x) be final, conclusive and binding on the Company, the
Rights Agent, the holders of the Right Certificates and all other parties and (y) not subject the
directors of the Company to any liability to the holders of the Rights. The Rights Agent shall
always be entitled to assume that the Board of Directors of the Company acted in good faith and the
Rights Agent shall be fully protected and shall incur no liability in reliance thereon.

   Section 35. Effect of the IPO.

     Notwithstanding any provision of this Agreement to the contrary, neither a Distribution Date,
a Section 11(a)(ii) Trigger Date, nor a Shares Acquisition Date shall be deemed to have occurred,
no Person shall be deemed to have become an Acquiring Person, and

-54-

 

no holder of any Rights shall be entitled to exercise such Rights under, or be entitled to any
rights pursuant to, any Section of this Agreement, in any such case by reason of the commencement
or the consummation of any of the transactions contemplated by the IPO.

     IN WITNESS WHEREOF, the parties hereto have caused this Rights Agreement to be duly executed
and their respective corporate seals to be hereunder affixed and attested, all as of the day and
year first above written.

	 	 	 	 	 
	Attest:
	 	BILL BARRETT CORPORATION
	/s/ Francis B. Barron

	 	By:
	 	/s/ Thomas B. Tyree, Jr.
	
 

	 	 	 	
 
	Francis B. Barron

	 	 	 	Thomas B. Tyree, Jr.
	Secretary

	 	 	 	Chief Financial Officer
	 
	 	 	 	 
	 
	 	
 
	Attest:
	 	MELLON INVESTOR SERVICES LLC
	/s/ Pam Smith
	 	as Rights Agent
	
 	 	 	 	 
	Pam Smith
Client Service Manager

	 	By:
	 	/s/ Tiffany Skiles
	

	 	 	 	
 
	 
	 	Assistant Vice President

-55-

 

EXHIBIT A

FORM

of

CERTIFICATE OF DESIGNATION

of

SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

of

BILL BARRETT CORPORATION

(Pursuant to Section 151 of the Delaware General Corporation Law)

     Bill Barrett Corporation, a corporation organized and existing under the General Corporation
Law of the State of Delaware (hereinafter called the “Corporation”), hereby certifies that the
following resolution was adopted by the Board of Directors of the Corporation as required by
Section 151 of the General Corporation Law at a meeting duly called and held on                     ,
2004:

     RESOLVED, that pursuant to the authority granted to and vested in the Board of Directors of
this Corporation (hereinafter called the “Board of Directors” or the “Board”) in accordance with
the provisions of the Certificate of Incorporation of the Corporation (the “Certificate of
Incorporation”), the Board of Directors hereby creates a series of Preferred Stock, par value
$0.001 per share (the “Preferred Stock”), of the Corporation and hereby states the designation and
number of shares, and fixes the relative rights, preferences, and limitations thereof as follows:

     Section 1. Designation and Amount. The shares of this series shall be designated as “Series A
Junior Participating Preferred Stock” (the “Series A Junior Preferred Stock”) and the number of
shares constituting the Series A Junior Preferred Stock shall be 150,000. Such number of shares
may be increased or decreased by resolution of the Board of Directors; provided, that no decrease
shall reduce the number of shares of Series A Junior Preferred Stock to a number less than the
number of shares then outstanding plus the number of shares reserved for issuance upon the exercise
of outstanding options, rights or warrants or upon the conversion of any outstanding securities
issued by the Corporation convertible into Series A Junior Preferred Stock.

 

 

     Section 2. Dividends and Distributions.

     (A) Subject to the rights of the holders of any shares of any series of Preferred Stock (or
any other stock) ranking prior and superior to the Series A Junior Preferred Stock with respect to
dividends, the holders of shares of Series A Junior Preferred Stock shall be entitled to receive,
when, as and if declared by the Board of Directors out of funds legally available for the purpose,
quarterly dividends payable in cash on the last day of March, June, September and December in each
year (each such date being referred to herein as a “Quarterly Dividend Payment Date”), commencing
on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a
share of Series A Junior Preferred Stock, in an amount (if any) per share (rounded to the nearest
cent), subject to the provision for adjustment hereinafter set forth, equal to 1,000 times the
aggregate per share amount of all cash dividends, and 1,000 times the aggregate per share amount
(payable in kind) of all non-cash dividends or other distributions, other than a dividend payable
in shares of Common Stock, par value $0.001 per share (the “Common Stock”), of the Corporation or a
subdivision of the outstanding shares of Common Stock (by reclassification or otherwise), declared
on the Common Stock since the immediately preceding Quarterly Dividend Payment Date or, with
respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or
fraction of a share of Series A Junior Preferred Stock. In the event the Corporation shall at any
time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a
subdivision 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 amount to which
holders of shares of Series A Junior Preferred Stock were entitled immediately prior to such event
under the preceding sentence shall be adjusted by multiplying such amount by a fraction, the
numerator of which is the number of shares of Common Stock outstanding immediately after such event
and the denominator of which is the number of shares of Common Stock that were outstanding
immediately prior to such event.

     (B) The Corporation shall declare a dividend or distribution on the Series A Junior Preferred
Stock as provided in paragraph (A) of this Section immediately after it declares a dividend or
distribution on the Common Stock (other than a dividend payable in shares of Common Stock).

     (C) Dividends due pursuant to paragraph (A) of this Section shall begin to accrue and be
cumulative on outstanding shares of Series A Junior Preferred Stock from the Quarterly Dividend
Payment Date next preceding the date of issue of such shares, unless the date of issue of such
shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case
dividends on such shares shall begin to accrue from the date of issue of such shares, or unless the
date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the
determination of holders of shares of Series A Junior Preferred Stock entitled to receive a
quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such
dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date.
Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares of Series A
Junior Preferred Stock in an amount less than the total amount of such dividends at the time
accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all
such shares at the time outstanding. The Board of Directors may fix a

A-2

 

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

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

     (A) Subject to the provision for adjustment hereinafter set forth, each share of Series A
Junior Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters submitted to
a vote of the stockholders of the Corporation. In the event the Corporation shall at any time
declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a
subdivision 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 Junior Preferred Stock were entitled immediately prior
to such event shall be adjusted by multiplying such number by a fraction, the numerator of which is
the number of shares of Common Stock outstanding immediately after such event and the denominator
of which is the number of shares of Common Stock that were outstanding immediately prior to such
event.

     (B) Except as otherwise provided in the Restated Certificate of Incorporation, including any
other Certificate of Designations creating a series of Preferred Stock or any similar stock, or by
law, the holders of shares of Series A Junior Preferred Stock and the holders of shares of Common
Stock and any other capital stock of the Corporation having general voting rights shall vote
together as one class on all matters submitted to a vote of stockholders of the Corporation.

     (C) Except as set forth herein, or as otherwise required by law, holders of Series A Junior
Preferred Stock shall have no special voting rights and their consent shall not be required (except
to the extent they are entitled to vote with holders of Common Stock as set forth herein) for
taking any corporate action.

     Section 4. Certain Restrictions.

     (A) Whenever quarterly dividends or other dividends or distributions payable on the Series A
Junior Preferred Stock as provided in Section 2 are in arrears, thereafter and until all accrued
and unpaid dividends and distributions, whether or not declared, on shares of Series A Junior
Preferred Stock outstanding shall have been paid in full, the Corporation shall not:

     (i) declare or pay dividends, or make any other distributions, on any shares of stock ranking
junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A
Junior Preferred 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 Series
A Junior Preferred Stock, except dividends paid ratably on the Series A Junior Preferred Stock and
all such parity stock on which dividends are payable or in arrears in proportion to the total
amounts to which the holders of all such shares are then entitled; or

A-3

 

     (iii) redeem or purchase or otherwise acquire for consideration shares of any stock ranking
junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A
Junior Preferred Stock, provided that the Corporation may at any time redeem, purchase or otherwise
acquire shares of any such junior stock in exchange for shares of any stock of the Corporation
ranking junior (as to dividends and upon dissolution, liquidation or winding up) to the Series A
Junior Preferred Stock.

     (B) The Corporation shall not permit any subsidiary of the Corporation to purchase or
otherwise acquire for consideration any shares of stock of the Corporation unless the Corporation
could, under paragraph (A) of this Section 4, purchase or otherwise acquire such shares at such
time and in such manner.

     Section 5. Reacquired Shares. Any shares of Series A Junior Preferred Stock purchased or
otherwise acquired by the Corporation in any manner whatsoever shall be retired and canceled
promptly after the acquisition thereof. The Corporation shall take all such actions as are
necessary to cause all such shares to become authorized but unissued shares of Preferred Stock that
may be reissued as part of a new series of Preferred Stock subject to the conditions and
restrictions on issuance set forth herein or in the Restated Certificate of Incorporation,
including any 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 Corporation the holders of shares of Series A Junior Preferred Stock shall be
entitled to receive an aggregate amount per share, subject to the provision for adjustment
hereinafter set forth, equal to 1,000 times the aggregate amount to be distributed per share to
holders of shares of Common Stock plus an amount equal to any accrued and unpaid dividends. In the
event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in
shares of Common Stock, or effect a subdivision 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
aggregate amount to which holders of shares of Series A Junior Preferred Stock were entitled
immediately prior to such event under the preceding sentence shall be adjusted by multiplying such
amount by a fraction the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of shares of Common Stock
that were outstanding immediately prior to such event.

     Section 7. Consolidation, Merger, Etc. In case the Corporation shall enter into any
consolidation, merger, combination or other transaction in which the shares of Common Stock are
exchanged for or changed into other stock or securities, cash and/or any other property, then in
any such case each share of Series A Junior Preferred Stock shall at the same time be similarly
exchanged or changed into an amount per share, subject to the provision for adjustment hereinafter
set forth, equal to 1,000 times the aggregate amount of stock, securities, cash and/or any other
property (payable in kind), as the case may be, into which or for which each share of Common Stock
is changed or exchanged. In the event the Corporation shall at any time declare or pay any
dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or
combination or consolidation of the outstanding shares of Common Stock (by

A-4

 

reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a
greater or lesser number of shares of Common Stock, then in each such case the amount set forth in
the preceding sentence with respect to the exchange or change of shares of Series A Junior
Preferred Stock shall be adjusted by multiplying such amount by a fraction, the numerator of which
is the number of shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were outstanding immediately
prior to such event.

     Section 8. Amendment. The Restated Certificate of Incorporation shall not be amended in any
manner, including in a merger or consolidation, which would alter, change, or repeal the powers,
preferences or special rights of the Series A Junior Preferred Stock so as to affect them adversely
without the affirmative vote of the holders of at least two-thirds of the outstanding shares of
Series A Junior Preferred Stock, voting together as a single class.

     Section 9. Rank. The Series A Junior Preferred Stock shall rank, with respect to the payment
of dividends and upon liquidation, dissolution and winding up, junior to all series of Preferred
Stock.

     IN WITNESS WHEREOF, this Certificate of Designation is executed on behalf of the Corporation
by its duly authorized officer this       day of                     , 2004.

	 	 	 	 	 
	 	BILL BARRETT CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

A-5

 

EXHIBIT B

Form of Right Certificate

			
	Certificate No. R-                    
	 	      Rights

NOT EXERCISABLE AFTER                     , 2014 OR EARLIER IF REDEMPTION OR EXCHANGE
OCCURS. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $0.001 PER RIGHT AND TO EXCHANGE ON
THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS
THAT ARE OR WERE ACQUIRED OR BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR ANY
ASSOCIATES OR AFFILIATES THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT)
OR ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID.

Right Certificate

BILL BARRETT 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, dated as of                           , 2004 (the
“Rights Agreement”), between Bill Barrett Corporation, a Delaware corporation (the “Company”), and
Mellon Investor Services LLC (the “Rights Agent”), 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.,
California time, on                           , 2014, at the office of the Rights Agent designated for such
purpose, or at the office of its successor as Rights Agent, one one-thousandth of a fully paid
non-assessable share of Series A Junior Participating Preferred Stock, par value $0.001 per share
(the “Preferred Shares”), of the Company, at a purchase price of $                     per one one-thousandth
of a Preferred Share (the “Purchase Price”), upon presentation and surrender of this Right
Certificate with the certification and the Form of Election to Purchase duly executed. The number
of Rights evidenced by this Right Certificate (and the number of one one-thousandths of a Preferred
Share which may be purchased upon exercise hereof) set forth above, and the Purchase Price set
forth above, are the number and Purchase Price as of                           , 2004, based on the Preferred
Shares as constituted at such date. As provided in the Rights Agreement, the Purchase Price and
the number of one one-thousandths of a Preferred Share which may be purchased upon the exercise of
the Rights evidenced by this Right Certificate are subject to modification and adjustment upon the
happening of certain events.

     From and after the occurrence of an event described in Section 11(a)(ii) of the Rights
Agreement, if the Rights evidenced by this Right Certificate are or were at any time on or after
the earlier of (x) the date of such event and (y) the Distribution Date (as such term is defined in
the Rights Agreement) acquired or beneficially owned by an Acquiring Person or an Associate or
Affiliate of an Acquiring Person (as such terms are defined in the Rights

 

 

Agreement), such Rights shall become void, and any holder of such Rights shall thereafter have
no right to exercise such Rights.

     This Right 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 hereunder of the Rights
Agent, the Company and the holders of the Right Certificates. Copies of the Rights Agreement are
on file at the principal executive offices of the Company and the offices of the Rights Agent.

     This Right Certificate, with or without other Right Certificates, upon surrender at the
principal office of the Rights Agent, may be exchanged for another Right Certificate or Right
Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like
aggregate number of Preferred Shares as the Rights evidenced by the Right Certificate or Right
Certificates surrendered shall have entitled such holder to purchase. If this Right Certificate
shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another
Right Certificate or Right Certificates for the number of whole Rights not exercised.

     Subject to the provisions of the Rights Agreement, at the Company’s option, the Rights
evidenced by this Certificate (i) may be redeemed by the Company at a redemption price of $0.001
per Right or (ii) may be exchanged in whole or in part for shares of the Company’s Common Stock,
par value $0.001 per share, or Preferred Shares.

     No fractional Preferred Shares will be issued upon the exercise of any Right or Rights
evidenced hereby (other than fractions which are integral multiples of one one-thousandth of a
Preferred Share, which may, at the election of the Company, be evidenced by depositary receipts),
but in lieu thereof a cash payment will be made, as provided in the Rights Agreement.

     No holder of this Right Certificate shall be entitled to vote or receive dividends or be
deemed for any purpose the holder of the Preferred Shares or of any other securities of the Company
which may at any time be issuable on the exercise hereof, nor shall anything contained in the
Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the
rights of a stockholder of the Company or any right to vote for the election of directors or upon
any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting stockholders (except
as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise,
until the Right or Rights evidenced by this Right Certificate shall have been exercised as provided
in the Rights Agreement.

     This Right Certificate shall not be valid or obligatory for any purpose until it shall have
been countersigned by the Rights Agent.

B-2

 

     WITNESS the facsimile signature of the proper officers of the Company and its corporate seal.
Dated as of                     , 2004.

	 	 	 	 	 	 	 	 	 
	Attest:
	 	BILL BARRETT CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	By:	 	 	 	 
	
 	 	 	 	
 	 	 
	 
	 	 	 	 	 	 	 	 
	Countersigned:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	
 	 	 	 	 	 	 
	
 	 	 	 	 	 	 
	Mellon Investor Services LLC	 	 	 	 	 	 
	Rights Agent	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	

	 	
 	 	 	 	 	 	 
	

	 	Authorized Signature	 	 	 	 	 	 

B-3

 

Form of Reverse Side of Right Certificate

FORM OF ASSIGNMENT

(To be executed by the registered holder if such holder

desires to transfer the Right Certificate.)

     FOR VALUE RECEIVED                                                                                                                                                                                      hereby sells, assigns and transfers
unto                                                                                                                                                              

(Please print name and address of transferee)

this Right Certificate, together with all right, title and interest therein, and does hereby
irrevocably constitute and appoint                                                                                                                         , Attorney, to transfer the within Right Certificate on the
books of the within-named Company, with full power of substitution.

Date:                           ,                     

	 	 	 	 	 
	 	 	 
	 	 	 
	 	Signature 	 
	 	 	 
	 

Signature Guaranteed:

     Signatures must be guaranteed by an eligible guarantor institution (bank, stock broker or
savings and loan association with membership in an approved signature medallion program).

	 	 	 
	

	 	 
	
 
	 	 

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

	 	 	 	 	 
	 	 	 
	 	 	 
	 	Signature 	 
	 	 	 
	 

	 	 	 
	

	 	 
	
 
	 	 

B-4

 

Form of Reverse Side of Right Certificate — continued

FORM OF ELECTION TO PURCHASE

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

To BILL BARRETT CORPORATION:

     The undersigned hereby irrevocably elects to exercise                      Rights represented by
this Right Certificate to purchase the Preferred Shares issuable upon the exercise of such Rights
and requests that certificates for such Preferred Shares be issued in the name of:

Please insert social security

or other identifying number

(Please print name and address)

If such number of Rights shall not be all the Rights evidenced by this Right Certificate, a new
Right Certificate for the balance remaining of such Rights shall be registered in the name of and
delivered to:

Please insert social security

or other identifying number

(Please print name and address)

Dated:                           ,                     

	 	 	 	 	 
	 	 	 
	 	 	 
	 	Signature 	 
	 	 	 
	 

Signature Guaranteed:

     Signatures must be guaranteed by an eligible guarantor institution (bank, stock broker or
savings and loan association with membership in an approved signature medallion program).

B-5

 

Form of Reverse Side of Right Certificate — continued

	 	 	 
	

	 	 
	
 
	 	 

     The undersigned hereby certifies that the Rights evidenced by this Right Certificate are not
and were not, at any time on or after the earlier of the event described in Section 11(a)(ii) of
the Rights Agreement or the Distribution Date (as such term is defined in the Rights Agreement)
acquired or beneficially owned by an Acquiring Person or an Affiliate or Associate thereof (as
defined in the Rights Agreement).

	 	 	 	 	 
	 	 	 
	 	 	 
	 	Signature 	 
	 	 	 
	 

	 	 	 
	

	 	 
	
 
	 	 

NOTICE

     The signature in the foregoing Forms of Assignment and Election 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, the Company and the Rights Agent will
deem the beneficial owner of the Rights evidenced by this Right Certificate to be an Acquiring
Person or an Affiliate or Associate thereof (as defined in the Rights Agreement) and such
Assignment or Election to Purchase will not be honored.

B-6

 

EXHIBIT C

SUMMARY OF RIGHTS TO PURCHASE

PREFERRED SHARES

     On                           , 2004, the Board of Directors of Bill Barrett Corporation (the “Company”)
declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of
Common Stock, par value $0.001 per share (the “Common Shares”), outstanding on                           ,
2004 (the “Record Date”) to the stockholders of record on that date. Each Right entitles the
registered holder to purchase from the Company one one-thousandth of a share of Series A Junior
Participating Preferred Stock, par value $0.001 per share (the “Preferred Shares”), of the Company,
at a price of $                     per one one-thousandth of a Preferred Share (the “Purchase Price”), subject
to adjustment. The description and terms of the Rights are set forth in a Rights Agreement (the
“Rights Agreement”) between the Company and Mellon Investor Services LLC, as Rights Agent (the
“Rights Agent”).

     Until the earlier to occur of (i) 10 days following a public announcement that a person or
group of affiliated or associated persons (an “Acquiring Person”) has acquired beneficial ownership
of 15% or, in the case of a Grandfathered Stockholder or a Second Tier Grandfathered Stockholder,
respectively, such percentage as is specified in the Rights Agreement, or more of the outstanding
Common Shares or (ii) 10 business days (or such later date as may be determined by action of the
Board of Directors prior to such time as any Person becomes an Acquiring Person) following the
commencement of, or announcement of an intention to make, a tender offer or exchange offer the
consummation of which would result in the beneficial ownership by a person or group of 15% or, in
the case of a Grandfathered Stockholder or a Second Tier Grandfathered Stockholder, respectively,
such percentage as is specified in the Rights Agreement, or more of the outstanding Common Shares
(the earlier of such dates being called the “Distribution Date”), the Rights will be evidenced,
with respect to any of the Common Share certificates outstanding as of the Record Date, by such
Common Share certificate with a copy of this Summary of Rights attached thereto.

     The Rights Agreement provides that, until the Distribution Date, the Rights will be
transferred with and only with the Common Shares. Until the Distribution Date (or earlier
redemption or expiration of the Rights), new Common Share certificates issued after the Record Date
or upon transfer or new issuance of Common Shares will contain a notation incorporating the Rights
Agreement by reference. Until the Distribution Date (or earlier redemption or expiration of the
Rights), the surrender for transfer of any certificates for Common Shares outstanding as of the
Record Date, even without such notation or a copy of this Summary of Rights being attached thereto,
will also constitute the transfer of the Rights associated with the Common Shares represented by
such certificate. As soon as practicable following the Distribution Date, separate certificates
evidencing the Rights (“Right Certificates”) will be mailed to holders of record of the Common
Shares as of the Close of Business on the Distribution Date and such separate Right Certificates
alone will evidence the Rights.

 

 

     The Rights are not exercisable until the Distribution Date. The Rights will expire on
                          , 2014 (the “Final Expiration Date”), unless the Final Expiration Date is extended
or unless the Rights are earlier redeemed by the Company, in each case, as described below.

     The Purchase Price payable, and the number of Preferred Shares or other securities or property
issuable, upon exercise of the Rights are subject to adjustment from time to time to prevent
dilution (i) in the event of a stock dividend on, or a subdivision, combination or reclassification
of, the Preferred Shares, (ii) upon the grant to holders of the Preferred Shares of certain rights
or warrants to subscribe for or purchase Preferred Shares at a price, or securities convertible
into Preferred Shares with a conversion price, less than the then current market price of the
Preferred Shares or (iii) upon the distribution to holders of the Preferred Shares of evidences of
indebtedness or assets (excluding regular periodic cash dividends paid out of earnings or retained
earnings or dividends payable in Preferred Shares) or of subscription rights or warrants (other
than those referred to above).

     The number of outstanding Rights and the number of one one-thousandths of a Preferred Share
issuable upon exercise of each Right are also subject to adjustment in the event of a stock split
of the Common Shares or a stock dividend on the Common Shares payable in Common Shares or
subdivisions, consolidations or combinations of the Common Shares occurring, in any such case,
prior to the Distribution Date.

     Preferred Shares purchasable upon exercise of the Rights will not be redeemable. Each
Preferred Share will be entitled to a quarterly dividend payment of 1,000 times the dividend
declared per Common Share. In the event of liquidation, the holders of the Preferred Shares will
be entitled to an aggregate payment of 1,000 times the aggregate payment made per Common Share.
Each Preferred Share will have 1,000 votes, voting together with the Common Shares. In the event
of any merger, consolidation or other transaction in which Common Shares are exchanged, each
Preferred Share will be entitled to receive 1,000 times the amount received per Common Share.
These rights are protected by customary antidilution provisions.

     Because of the nature of the Preferred Shares’ dividend, liquidation and voting rights, the
value of the one one-thousandth interest in a Preferred Share purchasable upon exercise of each
Right should approximate the value of one Common Share.

     From and after the time any Person becomes an Acquiring Person, if the Rights evidenced by
this Right Certificate are or were at any time on or after the earlier of (x) the date of such
event and (y) the Distribution Date (as such term is defined in the Rights Agreement) acquired or
beneficially owned by an Acquiring Person or an Associate or Affiliate of an Acquiring Person (as
such terms are defined in the Rights Agreement), such Rights shall become void, and any holder of
such Rights shall thereafter have no right to exercise such Rights.

     In the event that, at any time after a Person becomes an Acquiring Person, the Company is
acquired in a merger or other business combination transaction or 50% or more of its consolidated
assets or earning power are sold, proper provision will be made so that each holder of a Right will
thereafter have the right to receive, upon the exercise thereof at the then current exercise price
of the Right, that number of shares of common stock of the acquiring

C-2

 

company which at the time of such transaction will have a market value of two times the
exercise price of the Right. In the event that any person becomes an Acquiring Person, proper
provision shall be made so that each holder of a Right, other than Rights beneficially owned by the
Acquiring Person and its Affiliates and Associates (which will thereafter be void), will thereafter
have the right to receive upon exercise that number of Common Shares having a market value of two
times the exercise price of the Right. If the Company does not have sufficient Common Shares to
satisfy such obligation to issue Common Shares, or if the Board of Directors so elects, the Company
shall deliver upon payment of the exercise price of a Right an amount of cash or securities
equivalent in value to the Common Shares issuable upon exercise of a Right; provided that, if the
Company fails to meet such obligation within 30 days following the date a Person becomes an
Acquiring Person, the Company must deliver, upon exercise of a Right but without requiring payment
of the exercise price then in effect, Common Shares (to the extent available) and cash equal in
value to the difference between the value of the Common Shares otherwise issuable upon the exercise
of a Right and the exercise price then in effect. The Board of Directors may extend the 30-day
period described above for up to an additional 60 days to permit the taking of action that may be
necessary to authorize sufficient additional Common Shares to permit the issuance of Common Shares
upon the exercise in full of the Rights.

     At any time after any Person becomes an Acquiring Person and prior to the acquisition by any
person or group of a majority of the outstanding Common Shares, the Board of Directors of the
Company may exchange the Rights (other than Rights owned by such person or group which have become
void), in whole or in part, at an exchange ratio of one Common Share per Right (subject to
adjustment).

     With certain exceptions, no adjustment in the Purchase Price will be required until cumulative
adjustments require an adjustment of at least 1% in such Purchase Price. No fractional Preferred
Shares will be issued (other than fractions which are integral multiples of one one-thousandth of a
Preferred Share, which may, at the election of the Company, be evidenced by depositary receipts)
and in lieu thereof, an adjustment in cash will be made based on the market price of the Preferred
Shares on the last trading day prior to the date of exercise.

     At any time prior to the time any Person becomes an Acquiring Person, the Board of Directors
of the Company may redeem the Rights in whole, but not in part, at a price of $0.001 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 the Board of Directors in its sole discretion may establish.
Immediately upon any redemption of the Rights, the right to exercise the Rights will terminate and
the only right of the holders of Rights will be to receive the Redemption Price.

     The terms of the Rights may be amended by the Board of Directors of the Company without the
consent of the holders of the Rights, except that from and after such time as any person becomes an
Acquiring Person no such amendment may adversely affect the interests of the holders of the Rights
(other than the Acquiring Person and its Affiliates and Associates).

C-3

 

     Until a Right is exercised, the holder thereof, as such, will have no rights as a stockholder
of the Company, including, without limitation, the right to vote or to receive dividends.

     A copy of the Agreement has been filed with the Securities and Exchange Commission as an
Exhibit to a Registration Statement on [Form 8-A] dated                           , 2004. A copy of the
Agreement is available free of charge from the Company. This summary description of the Rights
does not purport to be complete and is qualified in its entirety by reference to the Agreement,
which is hereby incorporated herein by reference.

C-4

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