Document:

Exhibit 4.4

 Exhibit 4.4 
  
 EXECUTION VERSION 
  
 CBD MEDIA HOLDINGS LLC 
 CBD HOLDINGS
FINANCE, INC. 
  
 $100,000,000 
  
 9 1/4% Senior Notes due 2012 
  
 PURCHASE AGREEMENT 
  
 October 21, 2004 
  
 Lehman Brothers Inc. 
 Banc of America
Securities LLC 
 Goldman, Sachs & Co. 
  
 c/o Lehman Brothers Inc. 
 745 Seventh Avenue, 19th Floor 
 New York, New York 10019 
  
 Ladies and Gentlemen: 
  
 CBD
Media Holdings LLC, a Delaware limited liability company (“Holdings”), and CBD Holdings Finance, Inc., a Delaware corporation (“Finance” and, together with Holdings, the
“Issuers”), propose to issue and sell to the several Initial Purchasers named in Schedule 1 hereto (the “Initial Purchasers”) $100,000,000 in aggregate principal amount of their 9 1/4% Senior
Notes due 2012 (the “Notes”), pursuant to the terms of an indenture (the “Indenture”), to be dated as of October 26, 2004, between the Issuers and HSBC Bank USA, National Association, as trustee (the
“Trustee”). 
  
 The Notes will be offered
and sold to you pursuant to an exemption from the registration requirements under the Securities Act of 1933, as amended (the “Securities Act”). The Issuers have prepared a preliminary offering memorandum, dated October 19,
2004 (as amended or supplemented, the “Preliminary Offering Memorandum”), and will prepare a final offering memorandum (the “Offering Memorandum”), to be dated October 21, 2004, relating to the Issuers
and the Notes. 
  
 Upon original issuance thereof, and until such
time as the same is no longer required under the applicable requirements of the Securities Act, the Notes (and all securities issued in exchange therefor or in substitution therefor) shall bear substantially the following legend: 
  
 THE NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A)(1) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING
OF RULE 144A UNDER THE SECURITIES ACT PURCHASING FOR ITS OWN 

  

 EXECUTION VERSION 
  

 
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (2) IN AN OFFSHORE TRANSACTION
COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (4) TO AN INSTITUTIONAL ACCREDITED INVESTOR IN A
TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, (5) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (BASED ON AN OPINION OF COUNSEL IF THE ISSUERS SO REQUEST) OR (6) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES. 
  
 You have advised the Issuers that you will make offers and sales (the “Exempt Resales”) of the Notes purchased hereunder on the
terms set forth in the Offering Memorandum solely to (i) persons whom you reasonably believe to be “qualified institutional buyers” as defined in Rule 144A under the Securities Act (“QIBs”) and (ii) outside the
United States to persons other than U.S. Persons in offshore transactions meeting the requirements of Regulation S under the Securities Act (“Regulation S”) (such persons specified in clauses (i) and (ii) being referred to
herein as the “Eligible Purchasers”). As used herein, the terms “offshore transaction,” “United States” and “U.S. Person” have the respective meanings given to them in Regulation S. You will
offer the Notes to Eligible Purchasers initially at a price equal to 100.00% of the principal amount thereof. Thereafter, the offering price may be changed at any time without notice. 
  
 The financing transactions, including the offering of the Notes, as described in the Offering Memorandum are collectively
referred to herein as the “Transactions.” 
  
 Holders (including subsequent transferees) of the Notes will have the registration rights set forth in the registration rights agreement (the “Registration Rights Agreement”) among the Issuers and the Initial
Purchasers, to be dated as of the Closing Date (as defined below), in the form of Exhibit A hereto, for so long as such Notes constitute “Transfer Restricted Securities” (as defined in the Registration Rights
Agreement). Pursuant to the Registration Rights Agreement, the Issuers will agree to file with the Securities and Exchange Commission (the “Commission”) under the circumstances and pursuant to the terms set forth therein, (i)
a registration statement under the Securities Act (the “Exchange Offer Registration Statement”) relating to a separate series of the Issuers’ 9 1/4% Senior Notes due 2012 with substantially identical terms to the Notes
(except for transfer restrictions) (the “Exchange Notes”) to be offered in exchange for the Notes (such offer to exchange being referred to collectively as the “Registered Exchange Offer”) and (ii) if
required by the terms of the Registration Rights Agreement, a shelf registration statement pursuant to Rule 415 under the Securities Act (the “Shelf Registration Statement” and, together with the Exchange Offer Registration
Statement, the “Registration Statements”) relating to the resale by certain holders of the Notes, and to use their reasonable best efforts to cause such Registration Statements to be 

 EXECUTION VERSION 
  

 
declared effective. This Agreement, the Notes, the Exchange Notes, the Indenture and the Registration Rights Agreement are hereinafter referred to
collectively as the “Operative Documents.” This is to confirm the agreements concerning the purchase of the Notes from the Issuers by the Initial Purchasers. 
  
 SECTION 1. Representations, Warranties and Agreements of the Issuers. The Issuers, jointly and severally, represent,
warrant and agree that: 
  
 (a) The Preliminary
Offering Memorandum and the Offering Memorandum have been or will be prepared by the Issuers for use by the Initial Purchasers in connection with the Exempt Resales. No order or decree preventing the use of the Preliminary Offering Memorandum or the
Offering Memorandum or any order asserting that the transactions contemplated by this Agreement are subject to the registration requirements of the Securities Act has been issued, and no proceeding for that purpose has commenced or is pending or, to
the knowledge of the Issuers, is contemplated. 
  
 (b) The Preliminary Offering Memorandum as of its date, and the Offering Memorandum as of its date and the Closing Date, did not or will not as of such dates, and amendments or supplements to the Offering Memorandum will not, contain an
untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading, except that this representation and warranty
does not apply to statements in or omissions from the Preliminary Offering Memorandum and the Offering Memorandum made in reliance upon and in conformity with information furnished to the Issuers in writing by or on behalf of the Initial Purchasers
expressly for use therein, as specifically identified in Section 8(e) hereof. 
  
 (c) Each of the Issuers and their subsidiaries has been duly organized, is an existing limited liability company or corporation and is in good standing under the laws of its respective jurisdiction of organization and
is duly qualified to do business and is in good standing in each jurisdiction in which its respective ownership or lease of property or the conduct of its respective businesses requires such qualification other than where the failure to be so
qualified or in good standing would not reasonably be expected to have a Material Adverse Effect (as defined below). Each of the Issuers and their subsidiaries has all corporate or limited liability company, as the case may be, power and authority
necessary to own or hold their respective properties and to conduct the businesses in which they are engaged, and none of the subsidiaries of the Issuers, other than CBD Media LLC, is a “significant subsidiary,” as such term is defined in
Rule 405 under the Securities Act. 
  
 (d)
Holdings has no subsidiaries (as defined in Section 15 hereof) other than CBD Media LLC, CBD Finance, Inc. and Finance. 
  
 (e) Holdings has an authorized capitalization as set forth in the Offering Memorandum under the caption “Capitalization”; all of
the issued shares of capital stock or other equity interests of the Issuers have been duly authorized and validly issued, are fully paid and non-assessable; and all of the issued shares of capital stock or other equity 

 EXECUTION VERSION 
  

 
interests of CBD Media LLC, CBD Finance, Inc. and Finance are owned directly or indirectly by Holdings, free and clear of all liens, encumbrances and
defects, other than liens, encumbrances or defects contemplated under the Credit Agreement (as hereinafter defined) and none of such shares of capital stock or other equity interests were issued in violation of preemptive or other similar rights
arising by operation of law, under the charter and bylaws (or similar organizational documents) of the Issuers or under any agreement to which the Issuers are a party or otherwise. 
  
 (f) Each of the Issuers has all requisite corporate or limited liability company, as the case may be, power
and authority to execute, deliver and perform its respective obligations under this Agreement and each of the other Operative Documents to which it is a party. 
  

(g) This Agreement has been duly and validly authorized, executed and delivered by the Issuers. 
  
 (h) The Registration Rights Agreement has been duly and
validly authorized by the Issuers and, when duly executed by the proper officers of the Issuers (assuming due authorization, execution and delivery by the Initial Purchasers) and delivered by the Issuers, will constitute a legally valid and binding
agreement of the Issuers, enforceable against each of the Issuers in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating
to or affecting creditors’ rights and remedies generally, by general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in
equity), and except that rights to indemnification and contribution thereunder may be limited by federal or state securities laws or public policy relating thereto. 
  
 (i) The Indenture has been duly and validly authorized by the Issuers and, when duly executed by the proper
officers of the Issuers (assuming due authorization, execution and delivery by the Trustee) and delivered by the Issuers, will constitute a legally valid and binding agreement of the Issuers enforceable against each of the Issuers in accordance with
its terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights and remedies generally, and by general
principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity). As of the Closing Date, the Indenture will conform to the
requirements of the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”), and the rules and regulations thereunder applicable to an indenture that is qualified thereunder. 
  
 (j) The Notes have been duly and validly authorized by the
Issuers and, when duly executed by the Issuers in accordance with the terms of the Indenture and assuming due authentication of the Notes by the Trustee, when delivered to the Initial Purchasers against payment therefor in accordance with the terms
hereof, will have been validly issued and delivered and will constitute legally valid and binding obligations of the 

 EXECUTION VERSION 
  

 
Issuers entitled to the benefits of the Indenture and enforceable against each of the Issuers in accordance with their terms, except as such enforceability
may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights and remedies generally, and by general principles of equity, including principles of
commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity). 
  
 (k) The Exchange Notes have been duly and validly authorized by the Issuers and, if and when duly executed by the Issuers in accordance
with the terms of the Indenture and assuming due authentication of the Exchange Notes by the Trustee, if and when delivered in accordance with the Registered Exchange Offer contemplated by the Registration Rights Agreement, will constitute legally
valid and binding obligations of the Issuers entitled to the benefits of the Indenture and enforceable against each of the Issuers in accordance with their terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights and remedies generally, and by general principles of equity, including principles of commercial reasonableness, good faith and fair dealing
(regardless of whether enforcement is sought in a proceeding at law or in equity). 
  
 (l) The Issuers have all requisite corporate and limited liability company power and authority to enter into the financing
transactions described in the Offering Memorandum. 
  
 (m) (i) The Indenture, the Notes, the Registration Rights Agreement and the Credit Facility (as hereinafter defined) will, and (ii) the Billing and Collection Services Operating Agreement, dated as of February 4, 2002, between
Cincinnati Bell Telephone Company and CBD Media, Inc., the Directory Business Agreement, dated as of February 4, 2002, between Broadwing Inc. and CBD Media, Inc., the Directory Services Agreement, dated as of September 1, 2002, between CBD Media LLC
and L.M. Berry and Company, the Agreement between Cincinnati Bell Directory Inc. and Quebecor Printing Directory Sales Corporation for Printing and Binding of Directories, effective as of January 1, 1999, as amended, the Directory Delivery
Agreement, effective as of January 1, 2003, between Cincinnati Bell Media LLC and Directory Distributing Associates, Inc., the License Agreement, dated as of February 4, 2002, between Broadwing Inc. and CBD Media, Inc., and the Advisory Agreement,
dated as of March 8, 2002, by and between CBD Media LLC and Applegate and Collatos, Inc., as amended, do, conform in all material respects to the descriptions thereof in the Offering Memorandum. 
  
 (n) Provided that on or prior to the Closing Date, the
Issuers have entered into an amendment to the Credit Agreement (the “Amendment”) providing for a $23.0 million increase in the existing $130.0 million term loan portion of the Credit Facility, the execution, delivery and
performance of this Agreement and the other Operative Documents by the Issuers and the consummation of the Transactions will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, impose any 

 EXECUTION VERSION 
  

 
lien, charge or encumbrance upon any property or assets of the Issuers or any of their subsidiaries pursuant to, or constitute a default under, any
indenture, mortgage, deed of trust, loan agreement or other agreement, license or instrument to which either of the Issuers or any of their subsidiaries is a party or by which either of the Issuers or any of their subsidiaries is bound or to which
any of the property or assets of either of the Issuers or any of their subsidiaries is subject, (ii) result in any violation of the provisions of the charter or bylaws (or similar organizational documents) of the Issuers or any of their
subsidiaries, or (iii) result in the violation of any statute or any order, rule or regulation of any court or governmental agency or body having jurisdiction over the Issuers or any of their subsidiaries or any of their respective properties or
assets (except, with respect to (i) and, (iii), to the extent any such conflict, breach, violation, imposition or default would not reasonably be expected to have a Material Adverse Effect); and except as may be required in connection with (1) the
registration of the Notes and the Exchange Notes under the Securities Act in accordance with the Registration Rights Agreement, (2) qualification of the Indenture under the Trust Indenture Act and (3) compliance with the securities or Blue Sky laws
of various jurisdictions, no consent, approval, authorization or order of, or filing or registration with, any such court or governmental agency or body is required for the execution, delivery and performance of this Agreement or any of the other
Operative Documents by the Issuers and the consummation of the Transactions. 
  
 (o) The financial statements (including the related notes and supporting schedules) included in the Offering Memorandum comply as to form to the best of the knowledge of the Issuers in all material respects with the
requirements of Regulation S-X under the Securities Act and present fairly the consolidated financial condition, results of operations and cash flows of the entities purported to be shown thereby, at the dates and for the periods indicated, and have
been prepared in conformity with generally accepted accounting principles applied on a consistent basis throughout the periods involved. The other financial data contained in the Offering Memorandum, insofar as it has been derived from or represents
data presented in the historical financial statements or the books and records of the Issuers, is consistent with such financial statements or books and records of the Issuers, as applicable. 
  
 (p) Except as set forth in the Offering Memorandum, there
are no legal or governmental proceedings pending to which either of the Issuers or any of their subsidiaries is a party or of which any property or assets of either of the Issuers or any of their subsidiaries is the subject which, if determined
adversely to the Issuers or any of their subsidiaries, would reasonably be expected to have a material adverse effect on the financial condition, results of operations, business or prospects of the Issuers (a “Material Adverse
Effect”), and to the Issuers’ knowledge, no such proceedings are threatened or contemplated by governmental authorities or others. 
  
 (q) Except as set forth in the Offering Memorandum, there are no contracts, agreements or understandings between the Issuers or any of
their subsidiaries and any person granting such person the right to require the Issuers or any of their subsidiaries to file a registration statement under the Securities Act with respect to any securities of the Issuers or any of their subsidiaries
owned or to be owned by such person or to require the 

 EXECUTION VERSION 
  

 
Issuers or any of their subsidiaries to include such securities in the securities to be registered pursuant to the Exchange Offer Registration Statement or
the Shelf Registration Statement or in any securities registered or to be registered pursuant to any other registration statement filed by or required to be filed by the Issuers or any of their subsidiaries under the Securities Act. 
  
 (r) Except as disclosed in the Offering Memorandum, since
the date of the latest audited consolidated financial statements of Holdings included in the Offering Memorandum, neither Issuer nor any of their subsidiaries has incurred any liability or obligation, direct or contingent, or entered into any
transaction, in each case not in the ordinary course of business, that is material to the Issuers and their subsidiaries, taken as a whole, and there has not occurred, to the knowledge of the Issuers, any development or event involving a Material
Adverse Effect and, except as disclosed in the Offering Memorandum, there has been no (i) dividend or distribution of any kind declared, paid or made by the Issuers on any class of their respective capital stock or other equity interests, except for
distributions to holders of equity interests to pay tax liabilities associated with such equity interests ,(ii) issuance of securities by the Issuers (other than the Notes offered hereby) or (iii) material increase in short-term or long-term debt of
the Issuers. 
  
 (s) Holdings (i) makes and keeps
accurate books and records and (ii) maintains a system of internal accounting controls sufficient to provide reasonable assurance that (A) transactions are executed in accordance with management’s authorization, (B) transactions are recorded as
necessary to permit preparation of its financial statements in conformity with generally accepted accounting principles and to maintain accountability for its assets, (C) access to its assets is permitted only in accordance with management’s
authorization and (D) the recorded accountability for its assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 
  
 (t) Since the date of the most recent balance sheet reviewed or audited by Holdings’ auditors, the
board of directors (or a committee thereof) of Holdings (or persons fulfilling the equivalent function) has not been advised of (i) any significant deficiencies in the design or operation of internal controls which could adversely affect
Holdings’ ability to record, process, summarize and report financial data nor any material weaknesses in internal controls; and (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in
Holdings’ internal controls. 
  
 (u) Since
the date of the most recent balance sheet reviewed or audited by Holdings’ auditors, there have been no significant changes in internal controls or in other factors that could significantly affect internal controls, including any corrective
actions with regard to significant deficiencies and material weaknesses. 
  
 (v) Deloitte & Touche LLP, who has certified certain financial statements of Holdings, whose report appears in the Offering Memorandum and who has delivered the initial letter referred to in Section 7(i) hereof,
were independent certified public accountants during the periods covered by the financial statements on which their report 

 EXECUTION VERSION 
  

 
is contained in the Offering Memorandum as required by the Securities Act and the rules and regulations promulgated thereunder. 
  
 (w) Each of the Issuers and their subsidiaries carry, or are
covered by, insurance in such amounts and covering such risks as is adequate for the conduct of their respective businesses and the value of their respective properties and as is customary for companies engaged in similar businesses in similar
industries. 
  
 (x) Each of the Issuers and their
subsidiaries own or possess adequate rights to use all trademarks, service marks, trade names, trademark registrations, service mark registrations, copyrights and licenses necessary for the conduct of their respective businesses and have no reason
to believe that the conduct of their respective businesses will conflict with, and have not received any notice of any claim of conflict with, any such rights of others, and the Issuers and their subsidiaries are not aware of any pending or
threatened claim to the contrary or any pending or threatened challenge by any other person to the rights of the Issuers or any of their subsidiaries with respect to the foregoing which, if determined adversely to either of the Issuers or any of
their subsidiaries would have a Material Adverse Effect. 
  
 (y) There are no contracts or other documents which would be required to be described in the Offering Memorandum (assuming that the Offering Memorandum was made part of a registration statement on Form S-1 filed with
the Commission) that is not so described. 
  
 (z)
No relationship, direct or indirect, exists between or among the Issuers or any of their subsidiaries on the one hand, and the directors, officers, holders of membership interests, stockholders, customers or suppliers of the Issuers or any of their
subsidiaries on the other hand, which would be required to be described in the Offering Memorandum (assuming that the Offering Memorandum was made part of a registration statement on Form S-1 filed with the Commission) that is not so described.

  
 (aa) No labor disturbance by the employees of
the Issuers or any of their subsidiaries or, to the knowledge of the Issuers, by employees of L.M. Berry and Company who are dedicated to perform work on behalf of the Issuers, exists or, to the knowledge of the Issuers and their subsidiaries, is
imminent which would reasonably be expected to have a Material Adverse Effect. 
  
 (bb) Each of the Issuers and their subsidiaries is in compliance in all material respects with all presently applicable provisions of the
Employee Retirement Income Security Act of 1974, as amended, including the regulations and published interpretations thereunder (“ERISA”); no “reportable event” (as defined in ERISA) has occurred with respect to any
“pension plan” (as defined in ERISA) for which the Issuers or any of their subsidiaries would have any liability except as would not reasonably be expected to result in a Material Adverse Effect; the Issuers and each of their subsidiaries
have not incurred and do not expect to incur liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any “pension plan” or (ii) Sections 412 or 4971 of the Internal Revenue Code of 1986, as amended,
including the regulations and published 

 EXECUTION VERSION 
  

 
interpretations thereunder (the “Code”); each “pension plan” for which the Issuers and their subsidiaries would have any
liability that is intended to be qualified under Section 401(a) of the Code is so qualified in all material respects and nothing has occurred, whether by action or by failure to act, which would cause the loss of such qualification except as would
not reasonably be expected to result in a Material Adverse Effect. 
  
 (cc) Provided that on or prior to the Closing Date, the Issuers have entered into the Amendment providing for a $23.0 million increase in the existing $130.0 million term loan portion of the Credit Facility, none of
the Issuers or any of their subsidiaries (i) is in violation of its charter and bylaws (or similar organizational documents), (ii) is in default, and no event has occurred which, with notice or lapse of time or both, would constitute such a default,
in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement, license or other agreement, including but not limited to the agreements described in the Offering
Memorandum, or instrument to which it is a party or by which it is bound or to which any of its properties or assets is subject except as would not reasonably be expected to result in a Material Adverse Effect or (iii) is in violation of any law,
ordinance, governmental rule, regulation or court decree to which it or its property or assets may be subject or has failed to obtain any material license, permit, certificate, franchise or other governmental authorization or permit necessary to the
ownership of its property or to the conduct of its business except as would not reasonably be expected to result in a Material Adverse Effect. To the Issuers’ knowledge, no other party is in material violation of any contract material to the
Issuers’ or any of their subsidiaries business. 
  
 (dd) None of the Issuers or any of their subsidiaries, or any director, officer, agent, employee or other person associated with or acting on behalf of the Issuers or any of their subsidiaries, has used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expense relating to political activity; made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; violated or is in violation of
any provision of the Foreign Corrupt Practices Act of 1977; or made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment. 
  
 (ee) The Issuers and each of their subsidiaries are (i) in compliance with any and all applicable federal, state and local laws,
regulations, ordinance, rule, order, judgment, decree, permit or other legal requirement relating to the protection of human health and safety, the environment, natural resources or hazardous or toxic substances or wastes, pollutants or contaminants
(“Environmental Laws”), which compliance includes obtaining, maintaining and complying with all permits and authorizations and approvals required by Environmental Laws to conduct their respective businesses and (ii) have not
received notice of any actual or potential liability for the investigation or remediation of any disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants, except where such non-compliance with or liability under
Environmental Laws would not reasonably be expected to have a Material Adverse Effect; and none of the Issuers or any of their subsidiaries has been named as a “potentially responsible party” under the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended. 

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 (ff) The Issuers and each of their subsidiaries have good and marketable title to all
real property and good and marketable title to all personal property owned by them, in each case, free and clear of all liens, encumbrances and defects except such as are described in the Offering Memorandum or would not reasonably be expected to
have a Material Adverse Effect, and do not materially interfere with the use made or to be made of such property by the Issuers or their subsidiaries and all real property and buildings held under lease by the Issuers or any of their subsidiaries
are held by them under valid and enforceable leases, with no exceptions that would materially interfere with the use made or to be made of such assets by the Issuers or their subsidiaries. 
  
 (gg) Immediately after the consummation of the Transactions,
the fair value and present fair saleable value of the assets of the Issuers (each on a consolidated basis), will exceed the sum of its stated liabilities and identified contingent liabilities; neither Issuer, is, nor will either Issuer be, after
giving effect to the execution, delivery and performance of this Agreement and the other Operative Documents and the consummation of the Transactions, (A) left with unreasonably small capital with which to carry on its business as it is proposed to
be conducted, (B) unable to pay its debts (contingent or otherwise) as they mature or (C) otherwise insolvent. 
  
 (hh) Neither of the Issuers is, or, as of the Closing Date (as defined below) after giving effect to the offering and sale of the Notes
and the application of the proceeds as described in the Offering Memorandum under the section entitled “Use of Proceeds,” will be, an “investment company” within the meaning of such term under the Investment Company Act of 1940,
as amended (the “Investment Company Act”). 
  
 (ii) Neither of the Issuers, nor any affiliate (as defined in Rule 501(b) of Regulation D under the Securities Act (“Regulation D”)) of the Issuers has directly, or through any agent (provided
that no representation is made as to the Initial Purchasers or any person acting on their behalf), (i) sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security (as defined in the Securities Act) which is or
could be integrated with the offering and sale of the Notes in a manner that would require the registration of the Notes under the Securities Act or (ii) engaged in any form of general solicitation or general advertising (within the meaning of
Regulation D, including, but not limited to, advertisements, articles, notices or other communications published in any newspaper, magazine, or similar medium or broadcast over television or radio, or any seminar or meeting whose attendees have been
invited by any general solicitation or general advertising) in connection with the offering of the Notes. Neither of the Issuers has offered, sold or issued any securities, or securities that are convertible into other securities, with terms that
are substantially similar to the Notes during the six-month period preceding the date of the Offering Memorandum, including any sales pursuant to Section 4(2) of the Securities Act or Regulation D or Regulation S under the Securities Act.

  
 (jj) Each of the Preliminary Offering
Memorandum and the Offering Memorandum, as of its date, contains the information specified in, and meets the requirements of, Rule 144A(d)(4) under the Securities Act. 

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 (kk) When issued and delivered pursuant to this Agreement, the Notes will not be of
the same class (within the meaning of Rule 144A(d)(3) under the Securities Act) as securities of the Issuers that are listed on a national securities exchange registered under Section 6 of the Exchange Act or that are quoted in a U.S. automated
inter-dealer quotation system. 
  
 (ll) Assuming
(i) that your representations and warranties in Section 2 of this Agreement are true and accurate, (ii) your due performance of the covenants set forth herein and (iii) that each of the Eligible Purchasers is a QIB or a person who acquires the Notes
outside the United States in an “offshore transaction” and is not a “U.S. person” (within the meaning of Regulation S), it is not necessary in connection with the purchase of the Notes and the offer and initial resale of the
Notes by you in the manner contemplated by this Agreement and the Offering Memorandum, to register the Notes under the Securities Act or to qualify the Indenture under the Trust Indenture Act. 
  
 (mm) None of the Issuers or any of their affiliates or any
person acting on their behalf has engaged or will engage in any directed selling efforts within the meaning of Rule 902(b) of Regulation S with respect to the Notes, and the Issuers and their affiliates and all persons acting on their behalf have
complied with and will comply with the offering restrictions requirements of Regulation S in connection with the offering of the Notes outside of the United States and, in connection therewith, the Offering Memorandum will contain the disclosure
required by Rule 902(h). 
  
 (nn) The Notes sold
by the Issuers in reliance on Regulation S will be represented upon issuance by a temporary global security that may not be exchanged for definitive securities until the expiration of the 40-day restricted period referred to in Rule 903(c)(3) of the
Securities Act and only upon certification of beneficial ownership of such Notes by non-U.S. persons or U.S. persons who purchased such Notes in transactions that were exempt from the registration requirements of the Securities Act. 
  
 (oo) None of the Issuers or any of their subsidiaries or any
person acting on their behalf has taken or will take, directly or indirectly, any action designed to cause or result in, or which has constituted or which might reasonably be expected to constitute, the stabilization or manipulation of the price of
the Notes to facilitate the sale or resale of the Notes. 
  
 (pp) None of the Issuers or any of their subsidiaries or any person acting on their behalf has taken and none of them will take, any action that might cause this Agreement or the issuance or sale of the Notes to
violate Regulation T (12 C.F.R. Part 220), Regulation U (12 C.F.R. Part 221) or Regulation X (12 C.F.R. Part 224) of the Board of Governors of the Federal Reserve System. 
  
 Each of the Issuers understands that the Initial Purchasers and, for purposes of the opinions to be
delivered to the Initial Purchasers pursuant to Section 7 hereof, counsel to the Issuers and counsel to the Initial Purchasers will rely upon the accuracy and truth of the foregoing representations and hereby consents to such reliance. 

 EXECUTION VERSION 
  

 SECTION 2. Representations, Warranties and Agreements of the Initial Purchasers. Each of the
Initial Purchasers, severally and not jointly, represents and warrants to, and agrees with, the Issuers, that: 
  
 (a) Such Initial Purchaser is a QIB with such knowledge and experience in financial and business matters as are necessary in order to
evaluate the merits and risks of an investment in the Notes. 
  
 (b) Such Initial Purchaser (i) is not acquiring the Notes with a view to any distribution thereof or with any present intention of offering or selling any of the Notes in a transaction that would violate the
Securities Act or any state securities laws or any other applicable jurisdiction; (ii) in connection with the Exempt Resales, will solicit offers to buy the Notes only from, and will offer to sell the Notes only to, Eligible Purchasers in accordance
with this Agreement and on the terms contemplated by the Offering Memorandum; and (iii) will not offer or sell the Notes, nor has it offered or sold the Notes by, or otherwise engaged in, any form of general solicitation or general advertising
(within the meaning of Regulation D) in connection with the offering of the Notes. 
  
 (c) The Notes have not been and will not be registered under the Securities Act and may not be offered or sold within the United States or
to, or for the account or benefit of, U.S. persons except in accordance with Regulation S under the Securities Act or pursuant to an exemption from the registration requirements of the Securities Act. Such Initial Purchaser represents that it has
not offered, sold or delivered the Notes, and will not offer, sell or deliver the Notes (i) as part of their distribution at any time or (ii) otherwise until 40 days after the later of the commencement of the offering of the Notes and the Closing
Date (such period, the “Distribution Compliance Period”), within the United States or to, or for the account or benefit of U.S. persons, except in accordance with Rule 144A under the Securities Act. Accordingly, such Initial
Purchaser represents and agrees that neither it, its affiliates nor any persons acting on its behalf have engaged or will engage in any directed selling efforts within the meaning of Rule 902(c) of Regulation S with respect to the Notes, and its
affiliates and all persons acting on its behalf have complied and will comply with the offering restrictions requirements of Regulation S. 
  
 (d) Such Initial Purchaser agrees that, at or prior to confirmation of a sale of Notes (other than a sale pursuant to Rule 144A), it will
have sent to each distributor, dealer or person receiving a selling concession, fee or other remuneration that purchases Notes from them during the Distribution Compliance Period a confirmation or notice substantially to the following effect:

  
 “The Notes covered hereby have not been registered under
the Securities Act of 1933 (the “Securities Act”) and may not be offered and sold within the United States or to, or for the account or benefit of, U.S. persons (i) as part of their distribution at any time or (ii) otherwise until 40 days
after the later of the commencement of the offering or the closing date, except in either case in accordance with Regulation S (or Rule 144A if available) under the Securities Act, and in connection with any subsequent sale by 

 EXECUTION VERSION 
  

 
you of the Notes covered hereby in reliance on Regulation S during the period referred to above to any distributor, dealer or person receiving a selling
concession, fee or other remuneration, you must deliver a notice substantially to the foregoing effect. Terms used above have the meanings assigned to them in Regulation S.” 
  
 (e) Such Initial Purchaser (i) has not offered or sold, and, prior to the six months after the date of the
issue of the Notes, will not offer or sell, any Notes to persons in the United Kingdom, except to persons whose ordinary activities involve them in acquiring, holding, managing or disposing of investments (as principal or agent) for purposes of
their businesses or otherwise in circumstances which have not resulted and will not result in an offer to the public in the United Kingdom within the meaning of the Public Offers of Securities Regulations 1995, (ii) has complied with and will comply
with all applicable provisions of the Financial Services and Markets Act 2000 (the “FSMA”) with respect to anything done by it in relation to the Notes in, from or otherwise involving the United Kingdom, and (iii) has only
communicated or caused to be communicated and will only communicate and cause to be communicated any invitation or inducement to engage in investment activity (within the meaning of Section 21 of the FSMA) received by it in connection with the issue
or sale of any Notes in circumstances in which Section 21(1) of the FSMA would not apply to the Issuers. 
  
 (f) Each of the Initial Purchasers understands that the Issuers and, for purposes of the opinion(s) to be delivered to the Initial
Purchasers pursuant to Section 7(d) and (e) hereof, counsel to the Issuers and the Initial Purchasers, will rely upon the accuracy and truth of the foregoing representations, warranties and agreements and the Initial Purchasers hereby consent to
such reliance. 
  
 The terms used in this Section
2 that have meanings assigned to them in Regulation S are used herein as so defined. 
  
 SECTION 3. Purchase of the Notes by the Initial Purchasers. On the basis of the representations and warranties contained in, and subject to the terms and conditions of, this Agreement, the Issuers agree to sell
the Notes to the several Initial Purchasers and each of the Initial Purchasers, severally and not jointly, agrees to purchase the amount of Notes set forth opposite such Initial Purchaser’s name in Schedule 1 hereto. Each Initial
Purchaser will purchase such aggregate principal amount of Notes at an aggregate purchase price equal to 97.5% of the principal amount thereof (the “Purchase Price”). 
  
 The Issuers shall not be obligated to deliver any of the Notes to be
delivered on the Closing Date, except upon payment for all of the Notes to be purchased on the Closing Date as provided herein. 
  
 SECTION 4. Delivery of and Payment for the Notes. 
  
 (a) Delivery of and payment for the Notes shall be made at the offices of Weil, Gotshal & Manges LLP, 767 Fifth Avenue, New York, New
York 10153, at 11:00 A.M., New York City time, on the third full business day following the date of this 

 EXECUTION VERSION 
  

 
Agreement or at such other date or place as shall be determined by agreement between Lehman Brothers and the Issuers. This date and time are sometimes
referred to as the “Closing Date.” 
  
 (b) On the Closing Date, one or more Notes in definitive form, registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”), having an aggregate principal amount
corresponding to the aggregate principal amount of Notes sold pursuant to Eligible Resales (collectively, the “Global Notes”), shall be delivered by the Issuers to the Initial Purchasers against payment by the Initial
Purchasers of the purchase price thereof by wire transfer of immediately available funds as the Issuers may direct by written notice delivered to you no later than two business days prior to the Closing Date. The Global Notes in definitive form
shall be made available to the Initial Purchasers for inspection not later than 6:00 p.m. on the business day immediately prior to the Closing Date. 
  
 SECTION 5. Further Agreements of the Issuers. Each of the Issuers agrees: 
  
 (a) To advise you promptly and, if requested by you, to confirm such advice in writing, (i) of the issuance
by the Commission or any state securities commission of any stop order suspending the qualification or exemption from qualification of the Notes for offering or sale in any jurisdiction, or the initiation or threatening of any proceeding for such
purpose by the Commission or any state securities commission or other regulatory authority, and (ii) the happening of any event that makes any statement of a material fact made in the Preliminary Offering Memorandum or the Offering Memorandum untrue
or which requires the making of any additions to or changes in the Preliminary Offering Memorandum or Offering Memorandum in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The
Issuers shall use all reasonable efforts to prevent the issuance of any stop order or order suspending the qualification or exemption of the Notes under any state securities or Blue Sky laws and, if at any time any state securities commission shall
issue any stop order suspending the qualification or exemption of the Notes under any state securities or Blue Sky laws, the Issuers shall use all reasonable efforts to obtain the withdrawal or lifting of such order at the earliest possible time.

  
 (b) To furnish to you without charge, as many
copies of the Preliminary Offering Memorandum and the Offering Memorandum, and any amendments or supplements thereto, as you may reasonably request. The Issuers consent to the use, in accordance with the securities or blue sky laws of the
jurisdictions in which the Notes are offered by you and by dealers, of the Preliminary Offering Memorandum and the Offering Memorandum, and any amendments and supplements thereto required pursuant to this Agreement, by you in connection with the
Exempt Resales that are in compliance with this Agreement. 
  
 (c) Not to amend or supplement the Offering Memorandum prior to the Closing Date or during the period referred to in (d) below unless you shall previously have been advised of, and shall not have reasonably objected
to, such amendment or supplement within a reasonable time, but in any event not longer than three days after 

 EXECUTION VERSION 
  

 
being furnished a copy of such amendment or supplement. The Issuers shall promptly prepare, upon any reasonable request by you, any amendment or supplement
to the Offering Memorandum that may be necessary or advisable in connection with Exempt Resales. 
  
 (d) If, after the date of this Agreement and prior to the completion of the distribution of the Notes, any event shall occur that, in the
judgment of the Issuers or in your judgment or the judgment of counsel to you, makes any statement of a material fact in the Offering Memorandum untrue or that requires the making of any additions to or changes in the Offering Memorandum in order to
make the statements in the Offering Memorandum, in the light of the circumstances at the time that the Offering Memorandum is delivered to prospective Eligible Purchasers, not misleading, or if it is necessary to amend or supplement the Offering
Memorandum to comply with applicable law, the Issuers will promptly notify you of such event and prepare an appropriate amendment or supplement to the Offering Memorandum so that, at the time that the Offering Memorandum is delivered to prospective
Eligible Purchasers, (i) the Offering Memorandum as amended or supplemented will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading and (ii) the Offering Memorandum will comply with applicable law. 
  
 (e) Promptly from time to time to take such action as you may reasonably request to qualify the Notes for offering and sale under the
state securities or Blue Sky laws of such jurisdictions as you may request (provided, however, that the Issuers shall not be obligated to qualify as a foreign corporation in any jurisdiction in which it is not now so qualified or to take any
action that would subject it to general consent to service of process in any jurisdiction in which it is not now so subject) and to comply with such laws so as to permit the continuance of sales and dealings therein in such jurisdictions for as long
as may be necessary to complete the distribution of the Notes. 
  
 (f) To use all best efforts to do and perform all things required to be done and performed under this Agreement by it prior to or after the Closing Date and to satisfy all conditions precedent on its part to the
delivery of the Notes. 
  
 (g) Except as
contemplated in the Registration Rights Agreement, not to sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in the Securities Act) that would be integrated with the sale of the Notes in a
manner that would require the registration under the Securities Act of the sale to you or the Eligible Purchasers of the Notes. 
  
 (h) Not to, and to not permit any of its affiliates to, resell any Notes that have been acquired by any of them, except in accordance with
the Securities Act and the rules and regulations of the Commission. 
  
 (i) Not to, and to not permit any of its affiliates or any person acting on its or their behalf to, engage in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection
with the offering of the Notes. 

 EXECUTION VERSION 
  

 (j) Not to, and to not permit any of its affiliates or any person acting on its or
their behalf to, engage in any directed selling efforts within the meaning of Rule 902(b) of Regulation S with respect to the Notes, and to, and require its affiliates or any person acting on its or their behalf to, comply with the offering
restrictions requirements of Regulation S in connection with the offering of the Notes outside of the United States. 
  
 (k) Not to, and to not permit any of its subsidiaries or any person acting on its or their behalf to, take, directly or indirectly, any
action designed to cause or result in, or which has constituted or which might reasonably be expected to constitute, the stabilization or manipulation of the price of the Notes to facilitate the sale or resale of the Notes. 
  
 (l) For so long as any Notes remain outstanding and are
“restricted securities” within the meaning of Rule 144(a)(3) or, if earlier, until two years after the Closing Date, and during any period in which the Issuers are not subject to Section 13 or 15(d) of the Exchange Act, to make available
upon request to any registered holder or beneficial owner of Notes in connection with any sale thereof and any prospective purchaser of Notes from such registered holder or beneficial owner upon request of such holder, the information required by
Rule 144A(d)(4) under the Securities Act. 
  
 (m)
To use its best efforts to permit the Notes to be eligible for trading in The PORTALSM Market
(“PORTAL”), a subsidiary of The Nasdaq Stock Market, Inc., and to permit the Notes to be eligible for clearance and settlement through DTC. 
  
 (n) To apply the net proceeds from the sale of the Notes substantially in accordance with the description
set forth in the Offering Memorandum under the section entitled “Use of Proceeds.” 
  
 (o) To take such steps as shall be necessary to ensure that none of the Issuers or any of their subsidiaries shall become an
“investment company” within the meaning of such term under the Investment Company Act and the rules and regulations of the Commission thereunder. 
  
 (p) Except for borrowings under the amendment to the Credit Agreement, dated as of June 13, 2003, as amended through the Closing Date, by
and among Holdings, CBD Media LLC and the lenders named therein (the “Credit Facility”), for a period of 180 days from the date of the Offering Memorandum, not to, directly or indirectly, sell, contract to sell, grant any
option to purchase, issue any instrument convertible into or exchangeable for, or otherwise transfer or dispose of, any debt securities of the Issuers in a public or private offering for cash having a maturity of more than one year from the date of
issue of such securities, except (i) for the Exchange Notes in connection with the Exchange Offer or (ii) with the prior consent of the Initial Purchasers, which consent shall not be unreasonably withheld. 
  
 SECTION 6. Expenses. Each of the Issuers agrees that, whether or not
the transactions contemplated by this Agreement are consummated or this Agreement becomes 

 EXECUTION VERSION 
  

 
effective or is terminated (except as otherwise set forth in the second sentence of Section 11 hereof), to pay all costs, expenses, fees and taxes incident
to and in connection with: (i) the preparation, printing, filing and distribution of the Preliminary Offering Memorandum and the Offering Memorandum (including, without limitation, financial statements) and all amendments and supplements thereto
(but not, however, legal fees and expenses of your counsel incurred in connection therewith), (ii) the preparation, printing (including, without limitation, word processing and duplication costs) and delivery of this Agreement, the Indenture, the
Registration Rights Agreement, and all other agreements, memoranda, correspondence and other documents printed and delivered in connection herewith and with the Exempt Resales (but not, however, legal fees and expenses of your counsel incurred in
connection with any of the foregoing other than fees of such counsel), (iii) the issuance and delivery by the Issuers of the Notes, (iv) furnishing such copies of the Preliminary Offering Memorandum and the Offering Memorandum, and all amendments
and supplements thereto, as may be reasonably requested for use in connection with the Exempt Resales, (v) the preparation of certificates for the Notes (including, without limitation, printing and engraving thereof), (vi) the fees, disbursements
and expenses of the Issuers’ counsel and accountants and the Trustee, (vii) all expenses and listing fees in connection with the application for quotation of the Notes in PORTAL, (viii) the costs and expenses of the Issuers relating to investor
presentations on any road show undertaken in connection with the offering of the Notes, including without limitation, expenses associated with the production of road show slides and graphics, fees and expenses of any consultants engaged in
connection with the road show presentations with the prior approval of the Issuers, travel and lodging expenses of the representatives and officers of the Issuers and any such consultants, and the cost of any aircraft chartered in connection with
the road show, (ix) fees charged by any rating agency and other related expenses, if any, all fees and expenses (including fees and expenses of counsel) of the Issuers in connection with approval of the Notes by DTC for “book-entry”
transfer, and (x) the performance by the Issuers of their other obligations under this Agreement. 
  
 SECTION 7. Conditions of Initial Purchasers’ Obligations. The respective obligations of the Initial Purchasers hereunder are subject to the
accuracy, when made and on the Closing Date, of the representations and warranties of the Issuers contained herein, to the performance by each of the Issuers of its obligations hereunder, and to each of the following additional terms and conditions.

  
 (a) The Issuers shall have used their best
efforts to cause the Offering Memorandum to have been printed and copies distributed to you not later than 5:00 P.M., New York City time, on October 25, 2004, or at such later date and time as you may approve in writing, and no stop order suspending
the qualification or exemption from qualification of the Notes in any jurisdiction shall have been issued and no proceeding for that purpose shall have been commenced or shall be pending or threatened. 
  
 (b) No Initial Purchaser shall have discovered and disclosed
to the Issuers on or prior to such Closing Date that the Offering Memorandum or any amendment or supplement thereto contains an untrue statement of a fact which, in the judgment of the Initial Purchasers, is material or omits to state a fact which,
in the judgment of the Initial Purchasers, is material and is required to be stated therein or is necessary to make the statements therein not misleading. 

 EXECUTION VERSION 
  

 (c) All corporate proceedings and other legal matters incident to the authorization,
form and validity of this Agreement, the other Operative Documents, the Offering Memorandum, and all other legal matters relating to this Agreement and the Transactions shall be reasonably satisfactory in all material respects to counsel for the
Initial Purchasers, and the Issuers shall have furnished to such counsel/the Initial Purchasers all documents and information that they may reasonably request to enable them to pass upon such matters. 
  
 (d) Latham & Watkins LLP shall have furnished to the
Initial Purchasers its written opinions and 10b-5 representation letter, as counsel to the Issuers, addressed to the Initial Purchasers and dated as of the Closing Date, in form and substance reasonably satisfactory to the Initial Purchasers,
substantially in the forms attached hereto as Exhibit B-1. 
  
 (e) The Initial Purchasers shall have received from Weil, Gotshal & Manges LLP, counsel for the Initial Purchasers, such opinion or opinions, dated as of the Closing Date, with respect to the issuance and sale of
the Notes, the Offering Memorandum and other related matters as the Initial Purchasers may reasonably require, and the Issuers shall have furnished to such counsel such documents as they reasonably request for the purpose of enabling them to pass
upon such matters. 
  
 (f) Each of the Issuers
and the Trustee shall have entered into the Indenture and the Initial Purchasers shall have received counterparts, conformed as executed, thereof. 
  
 (g) Each of the Issuers shall have entered into the Registration Rights Agreement and the Initial Purchasers shall have received
counterparts, conformed as executed, by the Issuers. 
  
 (h) The Notes shall have been approved for trading in PORTALSM and shall be eligible for clearance and
settlement through DTC. 
  
 (i) At the time of
execution of this Agreement, the Initial Purchasers shall have received from Deloitte & Touche LLP a letter, in form and substance satisfactory to the Initial Purchasers, addressed to the Initial Purchasers and dated the date hereof (i)
confirming that they are independent certified public accountants within the meaning of the Securities Act and are in compliance with the applicable requirements relating to the qualification of accountants under Rule 2-01 of Regulation S-X of the
Commission, (ii) stating, as of the date hereof (or, with respect to matters involving changes or developments since the respective dates as of which specified financial information is given in the Offering Memorandum, as of a date not more than
five days prior to the date hereof), the conclusions and findings of such firm with respect to the financial information and other matters ordinarily covered by accountants’ “comfort letters” to initial purchasers. 
  
 (j) With respect to the letter of Deloitte & Touche LLP,
referred to in the preceding paragraph and delivered to the Initial Purchasers concurrently with the 

 EXECUTION VERSION 
  

 
execution of this Agreement (the “initial letter”), the Initial Purchasers shall have received a letter (the “bring-down
letter”) of such accountants, addressed to the Initial Purchasers and dated as of the Closing Date (i) confirming that they are independent certified public accountants within the meaning of the Securities Act and are in compliance with
the applicable requirements relating to the qualification of accountants under Rule 2-01 of Regulation S-X of the Commission, (ii) stating, as of the date of the bring-down letter (or, with respect to matters involving changes or developments since
the respective dates as of which specified financial information is given in the Offering Memorandum, as of a date not more than five days prior to the date of the bring-down letter), the conclusions and findings of such firm with respect to the
financial information and other matters covered by the initial letter and (iii) confirming in all material respects the conclusions and findings set forth in the initial letter. 
  
 (k) The Initial Purchasers shall have received a certificate from each of the Issuers, dated as of the
Closing Date, signed by its Chief Executive Officer and Chief Financial Officer stating, as applicable, that: 
  
 (A) The representations and warranties of the Issuers contained herein, as applicable, are true and correct as if made on and as of the
Closing Date (other than to the extent any such representation or warranty is made expressly to a certain date), and the Issuers, as applicable, have performed all covenants and agreements and satisfied all conditions on their part to be performed
or satisfied hereunder, to the extent a party hereto, at or prior to the Closing Date; 
  
 (B) They have carefully examined the Preliminary Offering Memorandum and the Offering Memorandum and, in their opinion, the Preliminary
Offering Memorandum and Offering Memorandum, as of their respective dates, did not, and the Offering Memorandum, as of the Closing Date, does not include any untrue statement of a material fact and did not omit to state a material fact required to
be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and since the date of the Offering Memorandum, no event has occurred which should have been set forth in a
supplement or amendment to Offering Memorandum; and 
  
 (C) The issuance and sale of the Notes by the Issuers hereunder has not been enjoined (temporarily or permanently) by any court or governmental body or agency. 
  
 (l) (i) None of the Issuers or their subsidiaries shall have sustained since the date of the latest audited
financial statements included in the Offering Memorandum (exclusive of any amendment or supplement thereto after the date hereof) any loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by
insurance, or from any labor dispute or court or governmental action, order or decree, otherwise than as set forth or contemplated in the Offering Memorandum or (ii) since such date there shall not have been any change in the capital stock or
long-term 

 EXECUTION VERSION 
  

 
debt of the Issuers or any change, or any development involving a prospective change, in or affecting the general affairs, management, financial position or
results of operations of the Issuers and its subsidiaries, otherwise than as set forth or contemplated in the Offering Memorandum, the effect of which, in any such case described in clause (i) or (ii), is, in the judgment of Lehman Brothers, so
material and adverse as to make it impracticable or inadvisable to proceed with the offering or the delivery of the Notes being delivered on such Closing Date on the terms and in the manner contemplated herein and in the Offering Memorandum.

  
 (m) Subsequent to the execution and delivery
of this Agreement (i) no downgrading shall have occurred in the rating accorded the debt securities of the Issuers or any of their subsidiaries by any “nationally recognized statistical rating organization,” as that term is defined by the
Commission for purposes of Rule 436(g)(2) of the Securities Act and (ii) no such organization shall have publicly announced or privately informed the Issuers or any of their subsidiaries that it has under surveillance or review, with possible
negative implications, its rating of any of the debt securities of the Issuers or any of their subsidiaries. 
  
 (n) Subsequent to the execution and delivery of this Agreement there shall not have occurred any of the following: (i) trading in
securities generally on the New York Stock Exchange or the American Stock Exchange or in the over-the-counter market, or trading in any securities of the Issuers or any of their subsidiaries on any exchange or in the over-the-counter market, shall
have been suspended or the settlement of such trading generally shall have been materially disrupted or minimum prices shall have been established on any such exchange or such market by the Commission, by such exchange or by any other regulatory
body or governmental authority having jurisdiction, (ii) a banking moratorium shall have been declared by Federal or state authorities, (iii) the United States shall have become engaged in hostilities not existing on the date of this Agreement,
there shall have been an escalation in hostilities involving the United States or there shall have been a declaration of a national emergency or war by the United States or (iv) there shall have occurred such a material adverse change in general
economic, political or financial conditions (or the effect of international conditions on the financial markets in the United States shall be such) or there shall have occurred any other calamity or crisis, including without limitation as a result
of terrorist activities after the date hereof, as to make it, in the judgment of Lehman Brothers, impracticable or inadvisable to proceed with the offering or delivery of the Notes being delivered on such Closing Date on the terms and in the manner
contemplated in the Offering Memorandum. 
  
 (o)
On or prior to the Closing Date, the Issuers shall enter into the Amendment, providing for a $23.0 million increase in the existing $130.0 million term loan portion of the Credit Facility, the net proceeds of which shall be used substantially in
accordance with the description set forth in the Offering Memorandum, under the section entitled “Use of Proceeds”; provided, that the Initial Purchasers shall not have the ability to waive the condition set forth in this Section
7(o). 

 EXECUTION VERSION 
  

 All opinions, letters, evidence and certificates mentioned above or elsewhere in this Agreement shall
be deemed to be in compliance with the provisions hereof only if they are in form and substance reasonably satisfactory to counsel for the Initial Purchasers. 
  

SECTION 8. Indemnification and Contribution. 
  
 (a) The Issuers shall jointly and severally indemnify and hold harmless each Initial Purchaser, its
directors, officers and employees and each person, if any, who controls any Initial Purchaser within the meaning of the Securities Act, from and against any loss, claim, damage or liability, joint or several, or any action in respect thereof
(including, but not limited to, any loss, claim, damage, liability or action relating to purchases and sales of the Notes), to which that Initial Purchaser, director, officer, employee or controlling person may become subject, under the Securities
Act or otherwise, insofar as such loss, claim, damage, liability or action arises out of, or is based upon, (i) any untrue statement or alleged untrue statement of a material fact contained (A) in the Preliminary Offering Memorandum, the Offering
Memorandum or in any amendment or supplement thereto or (B) in any Blue Sky application or other document prepared or executed by the Issuers (or based upon any written information furnished by the Issuers) specifically for the purpose of qualifying
any or all of the Notes under the securities laws of any state or other jurisdiction (any such application, document or information being hereinafter called a “Blue Sky Application”) or (C) in any materials or information
provided to investors by, or with the approval of, the Issuers in connection with the marketing of the offering of the Notes (“Marketing Materials”), including any roadshow or investor presentations made to investors by the
Issuers (whether in person or electronically), (ii) the omission or alleged omission to state in the Preliminary Offering Memorandum, the Offering Memorandum or in any amendment or supplement thereto, or in any Blue Sky Application or Marketing
Materials, any material fact required to be stated therein or necessary to make the statements therein not misleading or (iii) any act or failure to act or any alleged act or failure to act by any Initial Purchaser in connection with, or relating in
any manner to, the Notes or the offering contemplated hereby, and which is included as part of or referred to in any loss, claim, damage, liability or action arising out of or based upon matters covered by clause (i) or (ii) above (provided
that the Issuers shall not be liable under this clause (iii) to the extent that it is determined in a final judgment by a court of competent jurisdiction that such loss, claim, damage, liability or action resulted directly from any such acts or
failures to act undertaken or omitted to be taken by such Initial Purchaser through its gross negligence or willful misconduct), and shall reimburse each Initial Purchaser and each such director, officer, employee or controlling person promptly upon
demand for any legal or other expenses reasonably incurred by that Initial Purchaser, director, officer, employee or controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage,
liability or action as such expenses are incurred; provided, however, that the Issuers shall not be liable in any such case to the extent that any such loss, claim, damage, liability or action arises out of, or is based upon, any untrue
statement or alleged untrue statement or omission or alleged omission made in the Preliminary Offering Memorandum or the Offering Memorandum, or in any such amendment or supplement thereto, or in an Blue Sky Application, in reliance upon and in
conformity with written information concerning such Initial Purchaser furnished to the Issuers by or on behalf of 

 EXECUTION VERSION 
  

 
any Initial Purchaser specifically for inclusion therein. The foregoing indemnity agreement is in addition to any liability which the Issuers may otherwise
have to any Initial Purchaser or to any director, officer, employee or controlling person of that Initial Purchaser. 
  
 (b) Each Initial Purchaser shall, severally and not jointly, indemnify and hold harmless the Issuers, each of their directors, officers,
employees and each person, if any, who controls the Issuers within the meaning of the Securities Act, from and against any loss, claim, damage or liability, joint or several, or any action in respect thereof, to which the Issuers or any such
director, officer, employee or controlling person may become subject, under the Securities Act or otherwise, insofar as such loss, claim, damage, liability or action arises out of, or is based upon, (i) any untrue statement or alleged untrue
statement of a material fact contained in the Preliminary Offering Memorandum, the Offering Memorandum or in any amendment or supplement thereto, or in any Blue Sky Application or (ii) the omission or alleged omission to state in the Preliminary
Offering Memorandum, the Offering Memorandum or in any amendment or supplement thereto, or in any Blue Sky Application any material fact required to be stated therein or necessary to make the statements therein not misleading, but in each case only
to the extent that the untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information concerning such Initial Purchaser furnished to the Issuers through Lehman
Brothers by or on behalf of that Initial Purchaser specifically for inclusion therein, and shall reimburse the Issuers and any such director, officer, employee or controlling person for any legal or other expenses reasonably incurred by the Issuers
or any such director, officer or controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or action as such expenses are incurred. The foregoing indemnity agreement is in
addition to any liability which any Initial Purchaser may otherwise have to the Issuers or any such director, officer or controlling person. 
  
 (c) Promptly after receipt by an indemnified party under this Section 8 of notice of any claim or the commencement of any action, the
indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, notify the indemnifying party in writing of the claim or the commencement of that action; provided, however, that the
failure to notify the indemnifying party shall not relieve it from any liability which it may have under this Section 8 except to the extent it has been materially prejudiced by such failure and, provided further, that the failure to notify
the indemnifying party shall not relieve it from any liability which it may have to an indemnified party otherwise than under this Section 8. If any such claim or action shall be brought against an indemnified party, and it shall notify the
indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it wishes, jointly with any other similarly notified indemnifying party, to assume the defense thereof with counsel reasonably
satisfactory to the indemnified party. After notice from the indemnifying party to the indemnified party of its election to assume the defense of such claim or action, the indemnifying party shall not be liable to the indemnified party under this
Section 8 for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof other than 

 EXECUTION VERSION 
  

 
reasonable costs of investigation; provided, however, that Lehman Brothers shall have the right to employ counsel to represent jointly Lehman Brothers
and those other Initial Purchasers and their respective directors, officers, employees and controlling persons who may be subject to liability arising out of any claim in respect of which indemnity may be sought by the Initial Purchasers against the
Issuers under this Section 8 if, in the reasonable judgment of Lehman Brothers, it is advisable for Lehman Brothers and those Initial Purchasers, directors, officers, employees and controlling persons to be jointly represented by separate counsel,
and in that event the fees and expenses of such separate counsel shall be paid by the Issuers. No indemnifying party shall (i) without the prior written consent of the indemnified parties (which consent shall not be unreasonably withheld), settle or
compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are
actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding and does not
include any findings of fact or admissions of fault or culpability as to the indemnified party or (ii) be liable for any settlement of any such action effected without its written consent (which consent shall not be unreasonably withheld), but if
settled with the consent of the indemnifying party or if there be a final judgment of the plaintiff in any such action, the indemnifying party agrees to indemnify and hold harmless any indemnified party from and against any loss or liability by
reason of such settlement or judgment. 
  
 (d) If
the indemnification provided for in this Section 8 shall for any reason be unavailable to or insufficient to hold harmless an indemnified party under Section 8(a) or 8(b) in respect of any loss, claim, damage or liability, or any action in respect
thereof, referred to therein, then each indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability, or action in
respect thereof, (i) in such proportion as shall be appropriate to reflect the relative benefits received by the Issuers on the one hand and the Initial Purchasers on the other from the offering of the Notes or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Issuers, on the one hand, and the Initial
Purchasers on the other with respect to the statements or omissions which resulted in such loss, claim, damage or liability, or action in respect thereof, as well as any other relevant equitable considerations. The relative benefits received by the
Issuers on the one hand and the Initial Purchasers on the other with respect to such offering shall be deemed to be in the same proportion as the total net proceeds from the offering of the Notes purchased under this Agreement (before deducting
expenses) received by the Issuers, on the one hand, and the total discounts and commissions received by the Initial Purchasers with respect to the Notes purchased under this Agreement, on the other hand, bear to the total gross proceeds from the
offering of the Notes under this Agreement. The relative fault shall be determined by reference to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information
supplied by the Issuers or the Initial Purchasers, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such statement or 

 EXECUTION VERSION 
  

 
omission. The Issuers and the Initial Purchasers agree that it would not be just and equitable if contributions pursuant to this Section 8(d) were to be
determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation which does not take into account the equitable considerations referred to herein. The amount paid or
payable by an indemnified party as a result of the loss, claim, damage or liability, or action in respect thereof, referred to above in this Section 8(d) shall be deemed to include, for purposes of this Section 8(d), any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating or defending or preparing to defend any such action or claim. Notwithstanding the provisions of this Section 8(d), no Initial Purchaser shall be required to contribute
any amount in excess of the amount by which the total price at which the Notes purchased by it was resold to Eligible Purchasers exceeds the amount of any damages which such Initial Purchaser has otherwise paid or become liable to pay by reason of
any untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty
of such fraudulent misrepresentation. The Initial Purchasers’ obligations to contribute as provided in this Section 8(d) are several in proportion to their respective purchase obligations and not joint. 
  
 (e) The Initial Purchasers severally confirm and the Issuers
acknowledge that the last sentence on the cover page of the Offering Memorandum, the seventh paragraph of page ii of the Offering Memorandum, and the first sentence of the fifth and sixth paragraphs, the sixth sentence of the tenth paragraph and the
eleventh paragraph under the section entitled “Plan of Distribution” in the Offering Memorandum constitute the only information concerning the Initial Purchasers furnished in writing to the Issuers by or on behalf of the Initial Purchasers
specifically for inclusion in the Offering Memorandum. 
  
 SECTION
9. Defaulting Initial Purchasers. 
  
 If, on the Closing
Date, any Initial Purchaser defaults in the performance of its obligations under this Agreement, the remaining non-defaulting Initial Purchasers shall be obligated to purchase the Notes that the defaulting Initial Purchaser agreed but failed to
purchase on such Closing Date in the respective proportions which the amount of the Notes set forth opposite the name of each remaining non-defaulting Initial Purchaser in Schedule 1 hereto bears to the total amount of Notes set forth
opposite the names of all the remaining non-defaulting Initial Purchasers in Schedule 1 hereto; provided, however, that the remaining non-defaulting Initial Purchasers shall not be obligated to purchase any of the Notes on such Closing
Date if the total amount of the Notes which the defaulting Initial Purchaser or Initial Purchasers agreed but failed to purchase on such date exceeds 10% of the total amount of Notes to be purchased on such Closing Date, and any remaining
non-defaulting Initial Purchaser shall not be obligated to purchase more than 110% of the amount of Notes which it agreed to purchase on such Closing Date pursuant to the terms of Section 2. If the foregoing maximums are exceeded, the remaining
non-defaulting Initial Purchasers, or those other Initial Purchasers satisfactory to Lehman Brothers who so agree, shall have the right, but shall not be obligated, to purchase, in such proportion as may be agreed upon among them, all of the Notes
to be purchased on such Closing 

 EXECUTION VERSION 
  

 
Date. If the remaining Initial Purchasers or other Initial Purchasers satisfactory to Lehman Brothers do not elect to purchase the Notes which the defaulting
Initial Purchaser or Initial Purchasers agreed but failed to purchase on such Closing Date, this Agreement shall terminate without liability on the part of any non-defaulting Initial Purchaser or the Issuers, except that the Issuers will continue to
be liable for the payment of expenses to the extent set forth in Sections 6 and 11. As used in this Agreement, the term “Initial Purchaser” includes, for all purposes of this Agreement unless the context requires otherwise,
any party not listed in Schedule 1 hereto who, pursuant to this Section 9, purchases the Notes which a defaulting Initial Purchaser agreed but failed to purchase. 
  
 Nothing contained herein shall relieve a defaulting Initial Purchaser of any liability it may have to the Issuers for
damages caused by its default. If other Initial Purchasers are obligated or agree to purchase the Notes of a defaulting or withdrawing Initial Purchaser, either Lehman Brothers or the Issuers may postpone the Closing Date for up to seven full
business days in order to effect any changes that in the opinion of counsel for the Issuers or counsel for the Initial Purchasers may be necessary in the Offering Memorandum or in any other document or arrangement. 
  
 SECTION 10. Termination. The obligations of the Initial Purchasers
hereunder may be terminated by Lehman Brothers by notice given to and received by the Issuers prior to delivery of and payment for the Notes if, prior to that time, any of the events described in Sections 7(l), 7(m) and 7(n) shall have occurred or
if the Initial Purchasers shall decline to purchase the Notes for any reason permitted under this Agreement. 
  
 SECTION 11. Reimbursement of Initial Purchasers’ Expenses. If the Issuers shall fail to deliver the Notes to the Initial Purchasers by reason
of any failure, refusal or inability on the part of the Issuers to perform any agreement on its part to be performed, or because any other condition of the Initial Purchasers’ obligations hereunder required to be fulfilled by the Issuers is not
fulfilled, the Issuers will reimburse the Initial Purchasers for all reasonable out-of-pocket expenses (including fees and disbursements of counsel) incurred by the Initial Purchasers in connection with this Agreement and the proposed purchase of
the Notes, and upon demand the Issuers shall pay the full amount thereof to Lehman Brothers. If this Agreement is terminated pursuant to Section 9 by reason of the default of one or more Initial Purchasers, the Issuers will not be obligated to
reimburse any defaulting Initial Purchaser on account of those expenses. 
  
 SECTION 12. Notices, etc. All statements, requests, notices and agreements hereunder shall be in writing, and: 
  
 (a) if to the Initial Purchasers, shall be delivered or sent by mail, telex or facsimile transmission to the care of Lehman Brothers Inc.,
745 Seventh Avenue, 19th Floor, New York, New York 10019, Attention: Alex Sade (Fax: (646) 758-1125), with a copy to Weil, Gotshal & Manges LLP, 767 Fifth Avenue, New York, New York 10153, Attention: Todd Chandler, Esq. (Fax: 212-310-8007) and,
in the case of any notice pursuant to Section 8(d), to the Director of Litigation, Office of the General Counsel, Lehman Brothers Inc., 399 Park Avenue, New York, New York (Fax: (212) 526-2648); 

 EXECUTION VERSION 
  

 (b) if to the Issuers, shall be delivered or sent by mail, telex or facsimile
transmission to the Issuers, 312 Plum Street, Suite 900, Cincinnati, OH 45202, Attention: John Schwing (Fax: (513) 651-3842), with a copy to Latham & Watkins LLP, 555 Eleventh Street, NW, Suite 1000, Washington, DC 20004, Attention: Scott
Herlihy, Esq. (Fax: (202) 637-2201); 
  
 provided, however, that any notice
to an Initial Purchaser pursuant to Section 8(c) shall be delivered or sent by mail, telex or facsimile transmission to such Initial Purchaser at its address set forth in its acceptance telex to Lehman Brothers, which address will be supplied to any
other party hereto by Lehman Brothers upon request; provided further that any notice to the Initial Purchasers pursuant to Section 5(a) shall be delivered by email to Kenny Gunderman (kgunderm@lehman.com) and Kevin Genirs (kgenirs@lehman.com)
at Lehman Brothers Inc. Any such statements, requests, notices or agreements shall take effect at the time of receipt thereof. The Issuers shall be entitled to act and rely upon any request, consent, notice or agreement given or made on behalf of
the Initial Purchasers by Lehman Brothers. 
  
 SECTION 13.
Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the Initial Purchasers, the Issuers and their respective personal representatives and successors. This Agreement and the terms and
provisions hereof are for the sole benefit of only those persons, except that (a) the representations, warranties, indemnities and agreements of the Issuers contained in this Agreement shall also be deemed to be for the benefit of the directors,
officers, employees of the Initial Purchasers and each person or persons, if any, who control any Initial Purchasers within the meaning of Section 15 of the Securities Act and (b) the indemnity agreement of the Initial Purchasers contained in
Section 8(b) of this Agreement shall be deemed to be for the benefit of directors, officers, employees and any person controlling the Issuers within the meaning of Section 15 of the Securities Act. Nothing in this Agreement is intended or shall be
construed to give any person, other than the persons referred to in this Section 13, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision contained herein. 
  
 SECTION 14. Survival. The respective indemnities, representations,
warranties and agreements of the Issuers and the Initial Purchasers contained in this Agreement or made by or on behalf on them, respectively, pursuant to this Agreement, shall survive the delivery of and payment for the Notes and shall remain in
full force and effect, regardless of any investigation made by or on behalf of any of them or any person controlling any of them. 
  
 SECTION 15. Definition of the Terms “Business Day” and “Subsidiary.” For purposes of this Agreement, (a) “business
day” means each Monday, Tuesday, Wednesday, Thursday or Friday which is not a day on which banking institutions in New York are generally authorized or obligated by law or executive order to close and (b)
“subsidiary” has the meaning set forth in Rule 405 of the Securities Act. 
  
 SECTION 16. Jurisdiction. Each of the parties hereto irrevocably consents to the jurisdiction of the courts of the State of New York and the courts
of the United States of America located in the Borough of Manhattan, City and State of New York, over any suit, action or proceeding with respect to this Agreement or the transactions contemplated hereby. Each of the parties hereto waives any
objection that it may have to the venue of any suit, action or 

 EXECUTION VERSION 
  

 
proceeding with respect to this Agreement or the transactions contemplated hereby in the courts of the State of New York or the courts of the United States
of America, in each case, located in the Borough of Manhattan, City and State of New York or that such suit, action or proceeding brought in the courts of the State of New York or United States of America, in each case, located in the Borough of
Manhattan, City and State of New York was brought in an inconvenient court and agrees not to plead or claim the same. 
  
 SECTION 17. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of New York. 
  
 SECTION 18. Counterparts. This Agreement may be executed in multiple
counterparts and, if executed in counterparts, the executed counterparts shall each be deemed to be an original but all such counterparts shall together constitute one and the same instrument. 
  
 SECTION 19. Headings. The headings herein are inserted for convenience
of reference only and are not intended to be part of, or to affect the meaning or interpretation of, this Agreement. 
  
 [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

 EXECUTION VERSION 
  

 If the foregoing correctly sets forth the agreement among the Issuers and the Initial Purchasers,
please indicate your acceptance in the space provided for that purpose below. 
  

			
	 Very truly yours,

	
	 CBD MEDIA HOLDINGS LLC

		
	 By:
	 	 /s/ Ben Coughlin

	 Name:
	 	 Ben Coughlin

	 Title:
	 	 Secretary

	
	 CBD HOLDINGS FINANCE, INC.

		
	 By:
	 	 /s/ Ben Coughlin

	 Name:
	 	 Ben Coughlin

	 Title:
	 	 Secretary

 EXECUTION VERSION 
  

			
	Accepted:
	
	LEHMAN BROTHERS INC.
		
	By:	 	 /s/ A. Sade

	 	 	 Authorized Representative

  
 For itself and as representative

 of the several Initial Purchasers named 
 in Schedule 1
hereto 

 EXECUTION VERSION 
  

 SCHEDULE 1 
  

				
	 Initial Purchasers

	  	 Principal Amount
 of Notes

	 Lehman Brothers Inc.
	  	$	65,000,000
	 Banc of America Securities LLC
	  	 	17,500,000
	 Goldman, Sachs & Co.
	  	 	17,500,000
	 Total
	  	$	100,000,000
	 	  	
	

 EXECUTION VERSION 
  

 EXHIBIT A 
  
 Registration Rights Agreement 

  
 EXHIBIT B-1

  
 Form of Latham & Watkins Opinion 

 
 1. CBD Holdings is a limited liability company under the DLLCA with
limited liability company power and authority to own its properties and to conduct its business as described in the Offering Memorandum. Based on certificates from public officials, we confirm that CBD Holdings is validly existing and in good
standing under the laws of the State of Delaware. 
  
 2. CBD
Holdings Finance is a corporation under the DGCL with corporate power and authority to own its properties and to conduct its business as described in the Offering Memorandum. Based on certificates from public officials, we confirm that CBD Holdings
Finance is validly existing and in good standing under the laws of the State of Delaware. 
  
 3. The execution, delivery and performance of the Purchase Agreement have been duly authorized by all necessary corporate or limited liability company action, as applicable, of each of the Issuers, and the Purchase
Agreement has been duly executed and delivered by each of the Issuers. 
  
 4. The Indenture has been duly authorized by all necessary corporate or limited liability company action, as applicable, of each of the Issuers, and the Indenture has been duly executed and delivered by each of the Issuers, and the
Indenture is the legally valid and binding agreement of each of the Issuers, enforceable against each of them in accordance with its terms. 
  
 5. The Notes have been duly authorized by all necessary corporate or limited liability company action, as applicable, of each of the Issuers and, when
executed, issued and authenticated in accordance with the terms of the Indenture and delivered to and paid for by you in accordance with the terms of the Purchase Agreement, will be the legally valid and binding obligations of each of the Issuers,
enforceable against each of the Issuers in accordance with their terms. 
  
 6. The Issuers’ new 9 1/4% senior notes due 2012 (the “Exchange Notes”) to be issued in exchange for the Notes pursuant to the registered exchange offer contemplated by the Registration Rights Agreement have
been duly authorized by all necessary corporate or limited liability action, as applicable, of each of the Issuers. 
  
 7. The Registration Rights Agreement has been duly authorized by all necessary corporate or limited liability company action, as applicable, of each of
the Issuers, and has been duly executed and delivered by each of the Issuers and is the legally valid and binding agreement of each of the Issuers, enforceable against each of the Issuers in accordance with its terms. 
  
 8. No registration of the Notes under the Securities Act of 1933, as amended,
and no qualification of the Indenture under the Trust Indenture Act of 1939, as amended, is required for the purchase of the Notes by you or the initial resale of the Notes by you to eligible 

  

 
purchasers, as described in the Offering Memorandum under the caption “Notice to Investors,” in each case, in the manner contemplated by the
Purchase Agreement and the Offering Memorandum. We express no opinion, however, as to when or under what circumstances any Securities initially sold by you may be reoffered or resold. 
  
 9. The execution and delivery of the Operative Documents, and the issuance and sale of the Notes by the Issuers to you and
the other Initial Purchasers pursuant to the Purchase Agreement on the date hereof do not: 
  

	 	(i)	violate the Issuers’ or their subsidiaries’ respective Governing Documents; or 

  

	 	(ii)	result in the breach of or a default under any of the Material Agreements; or 

  

	 	(iii)	violate the DGCL or DLLCA, as applicable, or any federal or New York statute, rule or regulation applicable to the Issuers; or 

  

	 	(iv)	require any consents, approvals, or authorizations to be obtained by the Issuers or any of their subsidiaries, or any registrations, declarations or filings to be made by the
Issuers or any of their subsidiaries, in each case, under the DGCL or DLLCA, as applicable, or any federal or New York statute, rule or regulation applicable to the Issuers or their subsidiaries that have not been obtained or made.

  
 10. With your consent based solely on
certificates of officers of the Issuers as to factual matters, neither Issuer is, and immediately after giving effect to the sale of the Notes in accordance with the Purchase Agreement and the application of the proceeds as described in the Offering
Memorandum under the caption “Use of Proceeds,” neither Issuer will be, required to be registered as an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
  
 11. The statements in the Offering Memorandum under the caption
“Description of Notes,” insofar as they purport to constitute a summary of the terms of the Notes, and under the captions “Description of Other Indebtedness,” “Certain Relationships and Related Party Transactions –
Advisory Agreement,” “Business – Printing, Paper and Distribution – Quebecor Agreement,” “Business – Printing, Paper and Distribution – DDA Agreement,” “Business – Intellectual Property”
and “Business – Billing and Collection Services” insofar as they purport to describe or summarize certain provisions of the agreements or documents referred to therein, are accurate summaries or descriptions in all material respects.

  
 12. We confirm that, to our knowledge, and based solely on (i)
a certificate of an officer of each Issuer and (ii) our review of responses to auditors inquiries, all legal proceedings that would be required to be described by Regulation S-K Item 103 in a Registration Statement on Form S-1 for an offering of the
Notes have been described in the Offering Memorandum.Rights Agreement

 EXECUTION COPY 
  
 Exhibit 4.1 
  
 PENTAIR, INC. 
  
 and 
  
 WELLS FARGO BANK, N.A. 
  
 Rights Agent

  

  
 RIGHTS AGREEMENT 
  
 Dated as of December 10, 2004 
  

 TABLE OF CONTENTS 
  

					
	 SECTION 1.
	 	CERTAIN DEFINITIONS	  	1
			
	 SECTION 2.
	 	APPOINTMENT OF RIGHTS AGENT	  	3
			
	 SECTION 3.
	 	ISSUE OF RIGHT CERTIFICATES	  	3
			
	 SECTION 4.
	 	FORM OF RIGHT CERTIFICATES	  	4
			
	 SECTION 5.
	 	COUNTERSIGNATURE AND REGISTRATION	  	5
			
	 SECTION 6.
	 	TRANSFER, SPLIT UP, COMBINATION AND EXCHANGE OF RIGHT CERTIFICATES; MUTILATED, DESTROYED, LOST OR STOLEN RIGHT CERTIFICATES	  	5
			
	 SECTION 7.
	 	EXERCISE OF RIGHTS; PURCHASE PRICE; EXPIRATION DATE OF RIGHTS	  	6
			
	 SECTION 8.
	 	CANCELLATION AND DESTRUCTION OF RIGHT CERTIFICATES	  	7
			
	 SECTION 9.
	 	RESERVATION AND AVAILABILITY OF PREFERRED SHARES	  	7
			
	 SECTION 10.
	 	PREFERRED SHARES RECORD DATE	  	8
			
	 SECTION 11.
	 	ADJUSTMENT OF PURCHASE PRICE, NUMBER OF SHARES OR NUMBER OF RIGHTS	  	8
			
	 SECTION 12.
	 	CERTIFICATE OF ADJUSTED PURCHASE PRICE OR NUMBER OF SHARES	  	14
			
	 SECTION 13.
	 	CONSOLIDATION, MERGER, SHARE EXCHANGE OR SALE OR TRANSFER OF ASSETS OR EARNING POWER	  	14
			
	 SECTION 14.
	 	FRACTIONAL RIGHTS AND FRACTIONAL SHARES	  	16
			
	 SECTION 15.
	 	RIGHTS OF ACTION	  	17
			
	 SECTION 16.
	 	AGREEMENT OF RIGHT HOLDERS	  	17
			
	 SECTION 17.
	 	RIGHT CERTIFICATE HOLDER NOT DEEMED A SHAREHOLDER	  	18
			
	 SECTION 18.
	 	CONCERNING THE RIGHTS AGENT	  	18
			
	 SECTION 19.
	 	MERGER OR CONSOLIDATION OR CHANGE OF NAME OF RIGHTS AGENT	  	18
			
	 SECTION 20.
	 	DUTIES OF RIGHTS AGENT	  	19

  

 i 

					
	 SECTION 21.
	 	CHANGE OF RIGHTS AGENT	  	20
			
	 SECTION 22.
	 	ISSUANCE OF NEW RIGHT CERTIFICATES	  	21
			
	 SECTION 23.
	 	REDEMPTION	  	21
			
	 SECTION 24.
	 	EXCHANGE	  	22
			
	 SECTION 25.
	 	NOTICE OF CERTAIN EVENTS	  	23
			
	 SECTION 26.
	 	NOTICES	  	23
			
	 SECTION 27.
	 	SUPPLEMENTS AND AMENDMENTS	  	24
			
	 SECTION 28.
	 	SUCCESSORS	  	24
			
	 SECTION 29.
	 	BENEFITS OF THIS AGREEMENT	  	25
			
	 SECTION 30.
	 	SEVERABILITY	  	25
			
	 SECTION 31.
	 	GOVERNING LAW	  	25
			
	 SECTION 32.
	 	COUNTERPARTS	  	25
			
	 SECTION 33.
	 	DESCRIPTIVE HEADINGS	  	25
			
	 SECTION 34.
	 	DETERMINATIONS AND ACTIONS BY THE BOARD OF DIRECTORS	  	25

  
 Exhibit A - Terms of Series A Junior
Participating Preferred Stock 
  
 Exhibit B - Form of Right Certificate

  
 Exhibit C - Summary of Rights to Purchase Preferred Shares 
  

 ii 

  
 RIGHTS AGREEMENT

  
 THIS AGREEMENT, dated as of December 10, 2004,
between Pentair, Inc., a Wisconsin corporation (the “Company”), and Wells Fargo Bank, N.A. (the “Rights Agent”). 
  
 WHEREAS, the Board of Directors of the Company has authorized and declared a dividend of one preferred share purchase right (a “Right”)
for each Common Share (as hereinafter defined) of the Company outstanding upon the close of business on January 28, 2005 (the “Record Date”) payable upon the close of business on such date (the “Payment Date”), and has authorized
and directed the issuance of one Right with respect to each Common Share that shall become outstanding between the Record Date and the earliest of the Distribution Date, the Redemption Date and the Final Expiration Date (as such terms are
hereinafter defined), each Right representing the right to purchase one one-hundredth of a Preferred Share (as hereinafter defined) of the Company upon the terms and subject to the conditions hereinafter set forth. 
  
 NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereby agree as follows: 
  
 Item
2. Certain Definitions. For purposes of this Agreement, the following terms have the meanings indicated: 
  
 a. “Acquiring Person” shall mean any Person (as such term is hereinafter defined) who or which, together with all Affiliates and Associates (as
such terms are hereinafter defined) of such Person, shall be the Beneficial Owner (as such term is hereinafter defined) of 15% or more of the Common Shares of the Company then outstanding, but shall not include the Company, any Subsidiary (as such
term is hereinafter defined) of the Company, any employee benefit plan of the Company or any Subsidiary of the Company, any entity holding Common Shares for or pursuant to the terms of any such plan, or any trustee, administrator or fiduciary of
such a plan. Notwithstanding the foregoing, no Person shall become an “Acquiring Person” as a 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 more of the Common Shares of the Company then outstanding; provided, however, that if a Person would, but for the foregoing, become an Acquiring Person by reason of share purchases by the
Company and shall, after such share purchases by the Company, become the Beneficial Owner of any additional Common Shares of the Company at any time that the Person is or thereby becomes the Beneficial Owner of 15% or more of the Common Shares of
the Company then outstanding (other than Common Shares acquired solely as a result of corporate action of the Company not caused, directly or indirectly, by such Person), then such Person shall be deemed to be an “Acquiring Person”.
Notwithstanding the foregoing, if the Board of Directors of the Company determines in good faith that a Person who would otherwise be an “Acquiring Person”, as defined pursuant to the foregoing provisions of this paragraph (a), 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
(a), then such Person shall not be deemed to be an “Acquiring Person” for any purposes of this Agreement. 
  
 b. “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 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. 
  

 c. 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), or upon the exercise of conversion rights, exchange rights, rights (other than these Rights), warrants or options, or otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially
own, securities tendered pursuant to a tender or exchange offer made by 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 of the Exchange Act and (2) is not also
then reportable on Schedule 13D under the Exchange Act (or any comparable or successor report); or 
  
 iii. which are beneficially owned, directly or indirectly, by any other Person 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) for the purpose of, or with
respect to, acquiring, holding, voting (except to the extent contemplated by the proviso to Section 1(c)(ii)(B)) 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 beneficially own hereunder. 
  
 d. “Business
Day” shall mean any day other than a Saturday, a Sunday or a day on which banking institutions in the State of Minnesota are authorized or obligated by law or executive order to close. 
  
 e. “Close of business” on any given date shall mean 5:00 P.M.,
Minneapolis, Minnesota time, on such date; provided, however, that if such date is not a Business Day it shall mean 5:00 P.M., Minneapolis, Minnesota time, on the next succeeding Business Day. 
  
 f. “Common Shares” when used with reference to the Company shall
mean the shares of common stock, par value $0.16 2/3 per share, of the Company, or shares having equivalent rights, privileges and preferences to common stock. “Common Shares” when used with reference to any Person other than the Company
shall mean the capital stock (or equivalent equity interest) with the greatest voting power of such other Person or, if such other Person is a Subsidiary of another Person, the Person or Persons that ultimately control such first-mentioned Person.

  

 2 

 g. “Distribution Date” shall have the meaning set forth in Section 3(a) hereof. 
  
 h. “Final Expiration Date” shall have the meaning set forth in
Section 7 hereof. 
  
 i. “Person” shall mean any
individual, firm, corporation or other entity, and shall include any successor (by merger or otherwise) of such entity. 
  
 j. “Preferred Shares” shall mean shares of Series A Junior Participating Preferred Stock, par value $0.10 per share, of the Company having the
preferences and rights set forth in Exhibit A attached to this Agreement. 
  
 k. “Redemption Date” shall have the meaning set forth in Section 7 hereof. 
  
 l. “Shares Acquisition Date” shall mean the first date of public announcement (which, for purposes of this definition, shall include, without
limitation, a report filed or amended pursuant to Section 13(d) under the Exchange Act) by the Company or an Acquiring Person that an Acquiring Person has become such. 
  
 m. “Subsidiary” of any Person shall mean any corporation or other entity of which a majority of the voting power
of the voting equity securities or equity interest is owned, directly or indirectly, by such Person. 
  
 Item 3. Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as agent for the Company and the holders of the Rights (who, in accordance with Section 3 hereof,
shall prior to the Distribution Date also be the holders of the Common Shares of 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. 
  
 Item 4. Issue of
Right Certificates. 
  
 a. Until the earlier of (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 Company’s Board of Directors prior to such time as any Person becomes an Acquiring Person) after the date of
the commencement of, or of the first public announcement of the intention of any Person to commence, a tender or exchange offer the consummation of which would result in 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, any entity holding Common Shares for or pursuant to the terms of any such plan, or any trustee, administrator, or fiduciary of such a plan) becoming the Beneficial Owner of Common
Shares of the Company aggregating 15% or more of the then outstanding Common Shares (including in either case any such date which is after the date of this Agreement and prior to the Record Date; the earlier of such dates being herein referred to as
the “Distribution Date”; provided, however, that if the tenth day or Business Day, as the case may be, after the pertinent date occurs before the Record Date, “Distribution Date” shall mean the Record Date), (x) the Rights
will be evidenced (subject to the provisions of Section 3(b) hereof) by the certificates for Common Shares of the Company 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 of the Company. As soon as practicable after the Distribution Date, the Company will prepare and
execute, the Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if requested, send) by first-class, insured, postage-prepaid mail, to each record holder 

  

 3 

 
of Common Shares of the Company 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, in substantially the form of Exhibit B hereto (a “Right Certificate”), evidencing one Right for each Common Share of the Company so held. As of the Distribution Date, the Rights will be evidenced solely by such Right
Certificates. 
  
 b. The Company has prepared a Summary of Rights
to Purchase Preferred Shares, attached as Exhibit C hereto (the “Summary of Rights”), a copy of which is available free of charge from the Company. With respect to certificates for Common Shares of the Company outstanding as of the Record
Date, until the Distribution Date, the Rights will be evidenced by such certificates registered in the names of the holders thereof. Until the Distribution Date (or the earlier of the Redemption Date or the Final Expiration Date), the surrender for
transfer of any certificate for Common Shares of the Company 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
represented thereby. 
  
 c. Certificates for Common Shares of the
Company that become outstanding (including, without limitation, certificates for reacquired Common Shares referred to in the last sentence of this paragraph (c) and certificates issued on the transfer of Common Shares) after the Record Date but
prior to the earliest of the Distribution Date, the Redemption Date or the Final Expiration Date shall have impressed on, printed on, written on or otherwise affixed to them a legend in substantially the following form (provided, however, that
certificates for Common Shares of the Company in existence on the Record Date may bear the legend required by the Company’s predecessor rights agreement): 
  

This certificate also evidences and entitles the holder hereof to certain Rights as set forth in a Rights Agreement between Pentair,
Inc. and Wells Fargo Bank, N.A., dated as of December 10, 2004, and as such agreement may be amended (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 Pentair, Inc. 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. Pentair, Inc. 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 set forth in the Rights Agreement, Rights issued to, or held by, an Acquiring Person or any Affiliate or
Associate thereof (as such terms are defined in the Rights Agreement), whether held by such person or any subsequent holder, shall become null and void. 
  
 With respect to such certificates containing the foregoing legend, until the Distribution Date, the Rights associated with the Common Shares represented by such
certificates shall be evidenced by such certificates alone, and the surrender for transfer of any such certificate shall also constitute the transfer of the Rights associated with the Common Shares represented thereby. In the event that the Company
purchases or acquires any Common Shares after the Record Date but prior to the Distribution Date, any Rights associated with such Common Shares shall be deemed cancelled and retired so that the Company shall not be entitled to exercise any Rights
associated with the Common Shares which are no longer outstanding. 
  
 Item 5.
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 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 on which the Rights 

  

 4 

 
may from time to time be listed, or to conform to usage. Subject to the provisions of Section 22 hereof, the Right Certificates shall entitle the holders
thereof to purchase such number of one one-hundredths of a Preferred Share as shall be set forth therein at the price per one one-hundredth of a Preferred Share set forth therein (the “Purchase Price”), but the amount and type of
securities purchasable upon exercise of each Right and the Purchase Price shall be subject to adjustment as provided herein. 
  
 Item 6. Countersignature and Registration. 
  
 a. The Right Certificates shall be executed on behalf of the Company by its Chairman of the Board, Chief Executive Officer, President, Chief Financial
Officer or any Vice President either manually or by facsimile signature, shall have affixed thereto the Company’s seal or a facsimile thereof, and shall be attested by the Treasurer, an Assistant Treasurer, the Secretary or an Assistant
Secretary of the Company, either manually or by facsimile signature. The Right Certificates shall be manually countersigned by the Rights Agent and shall not be valid for any purpose unless 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 individual 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 individual was
not such an officer. 
  
 b. Following the Distribution Date, the
Rights Agent will keep or cause to be kept, at its principal office, books for registration and transfer of the Right Certificates issued hereunder. Such books shall show the names and addresses of the respective holders of the Right Certificates,
the number of Rights evidenced on its face by each of the Right Certificates and the date of each of the Right Certificates. 
  
 Item 7. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates. 
  
 a. Subject to the provisions of Section 14 hereof, at any time after the
close of business on the Distribution Date, and at or prior to the close of business on the earlier of the Redemption Date or the Final Expiration Date, any Right Certificate or Right Certificates (other than Right Certificates representing Rights
that have become void pursuant to Section 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-hundredths 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 principal office
of the Rights Agent. Thereupon the Rights Agent shall countersign and deliver to the person entitled thereto a Right Certificate or Right Certificates, as the case may be, as so requested. The Company may require payment of a sum sufficient to cover
any tax or governmental charge that may be imposed in connection with any transfer, split up, combination or exchange of Right Certificates. 
  
 b. Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Right
Certificate and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, and, at the Company’s 

  

 5 

 
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. 
  
 Item 8. Exercise of Rights; Purchase Price; Expiration Date
of Rights. 
  
 a. The registered holder of any Right
Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein) 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 the principal office of the Rights Agent, together with payment of the Purchase Price for each one one-hundredth of a Preferred Share as to which the Rights are exercised, at or prior to the
earliest of (i) the close of business on January 28, 2015 (the “Final Expiration Date”), (ii) the time at which the Rights are redeemed as provided in Section 23 hereof (the “Redemption Date”), and (iii) the time at which such
Rights are exchanged as provided in Section 24 hereof. 
  
 b. The
Purchase Price for each one one-hundredth of a Preferred Share pursuant to the exercise of a Right shall initially be $240, 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 or in Common Shares of the Company in accordance with paragraph (c) below. 
  
 c. Upon receipt of a Right Certificate representing exercisable Rights, with the form of election to purchase duly executed, accompanied by payment of the
Purchase Price for the shares to be purchased and an amount equal to any applicable transfer tax required to be paid by the holder of such Right Certificate in accordance with Section 9 hereof, as set forth below, the Rights Agent shall thereupon
promptly (i) (A) requisition from any transfer agent of the Preferred Shares certificates for the number of Preferred Shares to be purchased and the Company hereby irrevocably authorizes its transfer agent to comply with all such requests, or (B)
requisition from the depositary agent depositary receipts representing such number of one one-hundredths 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), (ii) when appropriate, requisition from the Company the amount of cash to be paid in lieu of issuance of fractional 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. The payment of the Purchase Price (as such amount may be reduced pursuant to Section 11(a)(iii) hereof) shall be made by certified check,
cashier’s check, bank draft or money order payable to the order of the Company, except that, if so provided by the Board of Directors of the Company, the payment of the Purchase Price following the occurrence of a Section 11(a)(ii) Event (as
hereinafter defined) and until the first occurrence of a Section 13 Event (as hereinafter defined) may be made wholly or in part by delivery of a certificate or certificates (with appropriate stock powers executed in blank attached thereto)
evidencing a number of Common Shares of the Company equal to the then Purchase Price divided by the closing price (as determined pursuant to Section 11(d) hereof) per Common Share on the Trading Day (as such term is hereinafter defined) immediately
preceding the date of such exercise. If the Company is obligated to issue other securities of the Company, pay cash and/or distribute other property pursuant to Section 11(a) hereof, the Company will make all arrangements necessary so that such
other securities, cash and/or other property are available for distribution by the Rights Agent, if and when appropriate. 
  

 6 

 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 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 take any action with respect to a registered holder of a Right Certificate upon the occurrence of any purported transfer, assignment or exercise as set
forth in this Section 7 unless such registered holder shall have (i) completed and signed the certificate following the form of assignment or election to purchase set forth on the reverse of the Right Certificate surrendered for such transfer,
assignment or 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 shall reasonably request. 
  
 Item 9. 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 cancelled form, or if
surrendered to the Rights Agent, shall be cancelled 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 destroy such cancelled Right
Certificates. 
  
 Item 10. Reservation and Availability of Preferred
Shares. 
  
 a. The Company covenants and agrees that it
will cause to be reserved and kept available out of its authorized and unissued Preferred Shares the number of Preferred Shares that will be sufficient to permit the exercise in full of all outstanding Rights in accordance with Section 7.

  
 b. So long as the Preferred Shares issuable upon the exercise
of Rights may be listed on any national securities exchange, the Company shall use its best efforts to cause, from and after such time as the Rights become exercisable, all Preferred Shares reserved for such issuance to be listed on such exchange
upon official notice of issuance upon such exercise. 
  
 c. 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 shares (subject to payment of the
Purchase Price), be duly and validly authorized and issued and fully paid and nonassessable shares (except as otherwise provided by any corporation law applicable to the Company). 
  
 d. The Company further covenants and agrees that it will pay when due and payable any and all federal and state transfer
taxes and charges which may be payable in respect of the issuance or delivery of the Right Certificates or of any Preferred Shares upon the exercise of Rights. The Company shall not, however, be required to pay any transfer tax which may be payable
in respect of any transfer or delivery of Right Certificates to a person other than, or the issuance or delivery of certificates for the Preferred Shares 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 for Preferred Shares upon the exercise of any Rights until any such tax shall have been paid (any such tax being payable by the holder of 

  

 7 

 
such Right Certificate at the time of surrender) or until it has been established to the Company’s reasonable satisfaction that no such tax is due.

  
 Item 11. Preferred Shares Record Date. Each Person
in whose name any certificate for Preferred Shares is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of the Preferred Shares represented thereby on, and such certificate shall be dated, the
date upon which the Right Certificate evidencing such Rights was duly surrendered and payment of the Purchase Price (and any applicable transfer taxes) was made; provided, however, that if the date of such surrender and payment is a date upon
which the Preferred Shares 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 Preferred Shares
transfer books of the Company are open. 
  
 Item 12. Adjustment of
Purchase Price, Number of Shares or Number of Rights. The Purchase Price, the number of Preferred Shares covered by each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this
Section 11. 
  
 a. (i) In the event the Company
shall at any time after the 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 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 adjusted so that the holder of any Right exercised after such time shall be entitled to receive the aggregate number and kind of shares of capital stock which, if such Right had
been exercised immediately prior to such date and at a time when the Preferred Shares transfer books of the Company were open, such holder would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision,
combination or reclassification; provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise
of one Right. If an event occurs which would require an adjustment under both Section 11(a)(i) and Section 11(a)(ii), the adjustment provided for in this Section 11(a)(i) shall be in addition to, and shall be made prior to, any adjustment required
pursuant to Section 11(a)(ii). 
  
 (ii) Subject
to Section 24 of this Agreement, in the event any Person shall become an Acquiring Person, other than pursuant to any transaction set forth in Section 13(a), 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-hundredths 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-hundredths 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 the Company (determined pursuant to 

  

 8 

 
Section 11(d)) on the date the Person became an Acquiring Person (such number of shares, the “Adjustment Shares”). 
  
 From and after such time as a Person becomes an Acquiring
Person (a “Section 11(a)(ii) Event”), any Rights that are or were acquired or beneficially owned by such Acquiring Person (or any Associate or Affiliate of such Acquiring Person) shall be 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 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 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 void pursuant to the preceding sentence shall be
cancelled. The Company shall use all reasonable efforts to ensure that the provisions of this paragraph are complied with, but shall have no liability to any holder of Right Certificates or other Person as a result of its failure to make any
determinations with respect to an Acquiring Person or its Affiliates, Associates or transferees hereunder. 
  
 (iii) In the event that there shall not be sufficient Common Shares of the Company issued but not outstanding or authorized but unissued
(and not reserved for issuance for purposes other than upon exercise of the Rights) to permit the exercise in full of the Rights in accordance with the foregoing subparagraph (ii), the Company shall: (A) determine the excess of (1) the value of the
Adjustment Shares issuable upon the exercise of a Right (the “Current Value”) over (2) the Purchase Price (such excess, the “Spread”), and (B) with respect to each Right, make adequate provision to substitute for the Adjustment
Shares, upon payment of the applicable Purchase Price, (1) cash, (2) a reduction in the Purchase Price, (3) equity securities of the Company (including, without limitation, one one-hundredth of a Preferred Share or shares, or units of shares, of
preferred stock which the Board of Directors of the Company has deemed to have the same value as Common Shares of the Company (such one one-hundredth of a Preferred Share or shares of preferred stock, hereinafter referred to as “common stock
equivalents”)), (4) debt securities of the Company, (5) other assets or (6) any combination of the foregoing, having an aggregate value equal to the Current Value, where such aggregate value has been determined by the Board of Directors of the
Company based upon the advice of a nationally recognized investment banking firm selected by the Board of Directors of the Company; provided, however, if the Company shall not have made adequate provision to substitute for the Adjustment
Shares pursuant to clause (B) above within thirty (30) days following the occurrence of a Section 11(a)(ii) Event (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 any portion of the Purchase Price, Common Shares of the Company (to the extent available) and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread. If the Board of
Directors of the Company shall determine in good faith that it is likely that sufficient additional Common Shares of the Company might be authorized for issuance for 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 shareholder approval for the authorization of such additional shares 

  

 9 

 
(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 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 to seek any authorization of additional shares and/or to decide the appropriate form of distribution to be made pursuant to such first sentence and to determine the value
thereof. In the event of any such suspension, the Company shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no longer in
effect. For purposes of this Section 11(a)(iii), the value of the Common Shares of the Company shall be the current per share market price (as determined pursuant to Section 11(d) hereof) of the Common Shares of the Company 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 of the Company 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 having the same rights, privileges and preferences as the Preferred Shares (“equivalent preferred shares”)) or
securities convertible into 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 determined by multiplying the Purchase Price in effect immediately prior to
such record date by a fraction, the numerator of which shall be the number of Preferred Shares 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 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 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 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)), 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 

  

 10 

 
price of the Preferred Shares (as defined in Section 11(d)) on such record date, less the fair market value (as determined in good faith by the Board of
Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent) of the portion of the 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 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 (i) a dividend or distribution on such Security payable in
shares of such Security or securities convertible into such shares, or (ii) any subdivision, combination or reclassification of such Security and prior to the expiration of 30 Trading Days after the ex-dividend date for such dividend or
distribution, or the record date for such subdivision, combination or reclassification, then, and in each such case, the current per share market price shall be appropriately adjusted to reflect the current market price per share equivalent of such
Security. The closing price for each Trading Day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal
consolidated transaction reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange or, if the Securities 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 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 of the Company as determined pursuant to Section 11(d)(i) (appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the Record Date), multiplied by 100. If neither the
Common Shares of the Company nor the Preferred Shares are publicly held or so listed or traded, “current per share market price” shall mean the fair value per share as determined in good faith by the Board of Directors of the Company,
whose determination shall be described in a statement filed with the Rights Agent. 
  

 11 

 e. 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-hundredth of a share 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 the earlier of (i) three years from the date of the transaction which requires such adjustment or (ii) the date of the expiration of the right to exercise any Rights. 
  
 f. If, as a result of an adjustment made pursuant to Section 11(a), the holder of any Right thereafter exercised shall
become entitled to receive any shares of capital stock of the Company other than Preferred Shares, thereafter the number of such other shares so receivable upon exercise of any Right shall be subject to adjustment from time to time in a manner and
on terms as nearly equivalent as practicable to the provisions with respect to the Preferred Shares contained in Section 11(a) through (c), inclusive, and the provisions of Sections 7, 9, 10 and 13 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 Preferred Shares purchasable from time 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 Section 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 Preferred Shares (calculated to the nearest one-hundredth of a Preferred Share) obtained by (i) multiplying (x) the number of
one one-hundredth of a Preferred Share covered by a Right immediately prior to this adjustment by (y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price and (ii) dividing the product so obtained by the Purchase
Price in effect immediately after such adjustment of the Purchase Price. 
  
 i. The Company may elect on or after the date of any adjustment of the Purchase Price to adjust the number of Rights, in substitution for any adjustment in the number of one one-hundredths of a 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-hundredths 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 one-hundredth) obtained by dividing the Purchase Price in effect immediately prior to
adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment of the Purchase Price. The Company shall make a public announcement of its election to adjust the number of Rights, indicating the record date for the
adjustment, and, if known at the time, the amount of the adjustment to be made. This record date may be the date on which the Purchase Price is adjusted or any day thereafter, but, if the Right Certificates have been issued, shall be at least 10
days later than the date of the public announcement. If Right Certificates have been issued, upon each adjustment of the number of Rights pursuant to this Section 11(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, 

  

 12 

 
and upon surrender thereof, if required by the Company, new Right Certificates evidencing all the Rights to which such holders shall be entitled after such
adjustment. Right Certificates so to be distributed shall be issued, executed and countersigned in the manner provided for herein and 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-hundredths 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-hundredths 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 the par value, if any, 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 nonassessable (except as otherwise provided by any
corporation law applicable to the Company) Preferred Shares at such adjusted Purchase Price. 
  
 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 one one-hundredths of a Preferred Share and other capital stock or securities of the Company, if any, issuable upon such exercise over and above the number of one
one-hundredths of a Preferred Share 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 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
consolidation or subdivision of the Preferred Shares, issuance wholly for cash of any Preferred Shares at less than the current market price, issuance wholly for cash of Preferred Shares or securities which by their terms are convertible into or
exchangeable for Preferred Shares, dividends on Preferred Shares payable in Preferred Shares or issuance of rights, options or warrants referred to in Section 11(b) hereof, hereafter made by the Company to holders of its Common Shares shall not be
taxable to such shareholders. 
  
 n. The Company covenants and
agrees that it shall not, at any time after the earlier of the Distribution Date or the Shares Acquisition Date, (i) consolidate with any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o)
hereof), (ii) merge with or into any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof), (iii) sell or transfer (or permit any Subsidiary to sell or transfer), in one transaction, or a
series of related transactions, assets or earning power aggregating more than 50% 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 and/or any of its
Subsidiaries in one or more transactions each of which complies with Section 11(o) hereof) or (iv) consummate a share exchange with any other Person, if at the time of or immediately after such consolidation, merger, sale or share exchange (A) there
are any rights, warrants or other instruments or securities outstanding or agreements in effect which would substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights, (B) prior to, simultaneously with or
immediately after such consolidation, merger, sale or share exchange the shareholders of the Person who 

  

 13 

 
constitute, or would constitute, the “Principal Party” for purposes of Section 13(a) hereof shall have received a distribution of Rights previously
owned by such Person or any of its Affiliates and Associates or (C) the form or nature of organization of the Principal Party would preclude or limit the exercisability of the Rights. 
  
 o. The Company covenants and agrees that, after the Distribution Date, it will not, except as permitted by Section 23,
Section 24 or Section 27 hereof, take (or permit any Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable that such action will diminish substantially or otherwise eliminate the benefits intended to be
afforded by the Rights. 
  
 p. Anything in this Agreement to the
contrary notwithstanding, in the event that the Company shall at any time after the date hereof and prior to the Distribution Date (i) declare a dividend on the outstanding Common Shares payable in Common Shares, (ii) subdivide the outstanding
Common Shares, or (iii) combine the outstanding Common Shares into a smaller number of shares, the number of Rights associated with each Common Share then outstanding, or issued or delivered thereafter but prior to the Distribution Date, shall be
proportionately adjusted so that the number of Rights thereafter associated with each Common Share following any such event shall equal the result obtained by multiplying the number of Rights associated with each Common Share immediately prior to
such event by a fraction the numerator which shall be the total number of Common Shares outstanding immediately prior to the occurrence of the event and the denominator of which shall be the total number of Common Shares outstanding immediately
following the occurrence of such event. 
  
 Item 13. Certificate of
Adjusted Purchase Price or Number of Shares. 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 accounting for such adjustment, (b) file with the Rights Agent and with each transfer agent for the Common Shares of the Company a copy of such certificate and (c) mail a brief summary thereof to each holder of a Right Certificate in
accordance with Section 25 hereof. 
  
 Item 14. Consolidation, Merger, Share
Exchange or Sale or Transfer of Assets or Earning Power. 
  
 a. In the event that, following the Shares Acquisition Date, directly or indirectly, (x) the Company shall consolidate with, or merge with and into, any other Person (other than a Subsidiary of the Company in a transaction which complies
with Section 11(o) hereof), and the Company shall not be the continuing or surviving corporation of such consolidation or merger, (y) any Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof) shall
consolidate with, or merge with or into, the Company, and the Company shall be the continuing or surviving corporation of such consolidation or merger, or any Person or Persons (other than a Subsidiary of the Company in a transaction that complies
with Section 11(o) hereof) shall consummate a share exchange with the Company, and, in connection with such consolidation, merger or share exchange, all or part of the outstanding Common Shares of the Company 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 (z) the Company shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer), in one transaction or a series
of related transactions, assets or earning power aggregating more than 50% of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any Person or Persons (other than the Company or any Subsidiary of the Company in one
or more transactions each of which complies with Section 11(o) hereof), then, and in each such case, proper provision shall be made so that: (i) each holder of a Right (except as otherwise provided herein) shall thereafter have the right to receive,
upon 

  

 14 

 
the exercise thereof at a price equal to the then current Purchase Price multiplied by the number of one one-hundredths of a Preferred Share for which a
Right is then exercisable (or, if a Section 11(a)(ii) Event has occurred prior to the first occurrence of any of the events described in clauses (x), (y) or (z) above (a “Section 13 Event”), the Purchase Price in effect immediately prior
to the first occurrence of a Section 11(a)(ii) Event multiplied by the number of one one-hundredths of a Preferred Share for which a Right was exercisable immediately prior to such first occurrence), in accordance with the terms of this Agreement,
such number of validly authorized and issued, fully paid, nonassessable (except as otherwise required by any corporation law applicable to the Principal Party (as such term is hereinafter defined)) and freely tradeable Common Shares of the Principal
Party, not subject to any liens, encumbrances, rights of first refusal or other adverse claims, as shall be equal to the result obtained by (1) multiplying the then current Purchase Price by the number of one one-hundredths of a Preferred Share for
which a Right is exercisable immediately prior to the first occurrence of a Section 13 Event (or, if a Section 11(a)(ii) Event has occurred prior to the first occurrence of a Section 13 Event, multiplying the number of such shares for which a Right
was exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event by the Purchase Price in effect immediately prior to such first occurrence), and dividing that product (which, following the first occurrence of a Section 13
Event, shall be referred to as the “Purchase Price” for each Right and for all purposes of this Agreement) by (2) 50% of the current market price (determined pursuant to Section 11(d) hereof) per Common Share of such Principal Party on the
date of consummation of such Section 13 Event; (ii) such Principal Party shall thereafter be liable for, and shall assume, by virtue of such Section 13 Event, all the obligations and duties of the Company pursuant to this Agreement; (iii) the term
“Company” shall thereafter be deemed to refer to such Principal Party, it being specifically intended that the provisions of Section 11 hereof shall apply only to such Principal Party following the first occurrence of a Section 13 Event;
(iv) such Principal Party shall take such steps (including, but not limited to, the reservation of a sufficient number of its Common Shares) in connection with the consummation of any such transaction as may be necessary to assure that the
provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to its Common Shares thereafter deliverable upon the exercise of the Rights; and (v) the provisions of Section 11(a)(ii) hereof shall be of no effect
following the first occurrence of any Section 13 Event. 
  
 b.
“Principal Party” shall mean 
  
 i. in
the case of any transaction described in clause (x) or (y) of the first sentence of Section 13(a), the Person that is the issuer of any securities into which Common Shares of the Company are converted in such merger, consolidation or share exchange,
and if no securities are so issued, (A) the Person that is the other party to the merger, consolidation or share exchange and that survives such merger or consolidation, or, if there is more than one such Person, the Person the Common Shares of
which have the greatest aggregate market value of shares outstanding or (B) if the Person that is the other party to the merger or consolidation does not survive the merger or consolidation, the Person that does survive the merger or consolidation
(including the Company if it survives); and 
  
 ii. in the case of any transaction described in clause (z) of the first sentence of Section 13(a), the Person that is the party receiving the greatest portion of the assets or earning power transferred pursuant to such transaction or
transactions; 
  
 provided, however, that in any such case, (1) if the
Common Shares of such Person are not at such time and have not been continuously over the preceding twelve (12) month-period registered under Section 12 of the Exchange Act, and such Person is a direct or indirect Subsidiary of another Person the
Common Shares of which are and have been so registered, “Principal Party” shall refer to such other Person; and (2) in case such Person is a Subsidiary, directly or indirectly, of more than one Person, the Common Shares of two or 

  

 15 

 
more of which are and have been so registered, “Principal Party” shall refer to whichever of such Persons is the issuer of the Common Shares having
the greatest aggregate market value. 
  
 c. The Company shall not
consummate any such consolidation, merger, share exchange, sale or transfer unless the Principal Party shall have a sufficient number of authorized Common Shares which have not been issued or reserved for issuance to permit the exercise in full of
the Rights in accordance with this Section 13 and unless prior thereto the Company and such Principal Party shall have executed and delivered to the Rights Agent a supplemental agreement providing for the terms set forth in paragraphs (a) and (b) of
this Section 13 and further providing that, as soon as practicable after the date of any consolidation, merger, share exchange or sale of assets mentioned in paragraph (a) of this Section 13, the Principal Party will: 
  
 i. prepare and file a registration statement under the
Securities Act of 1933, as amended (the “Act”), with respect to the Rights and the securities purchasable upon exercise of the Rights on an appropriate form, and will use its best efforts to cause such registration statement to (A) become
effective as soon as practicable after such filing and (B) remain effective (with a prospectus at all times meeting the requirements of the Act) until the Final Expiration Date; and 
  
 ii. deliver to holders of the Rights historical financial statements for the Principal Party and each of its
Affiliates which comply in all respects with the requirements for registration on Form 10 under the Exchange Act. 
  
 The provisions of this Section 13 shall similarly apply to successive mergers, consolidations, share exchanges, sales or other transfers. In the event that a Section 13
Event shall occur at any time after the occurrence of a Section 11(a)(ii) Event, the Rights which have not theretofore been exercised shall thereafter become exercisable in the manner described in Section 13(a). 
  
 Item 15. 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. 
  

 16 

 b. The Company shall not be required to issue fractions of Preferred Shares (other than fractions which
are integral multiples of one one-hundredth 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-hundredth of a
Preferred Share). Fractions of Preferred Shares in integral multiples of one one-hundredth 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-hundredth of a Preferred Share, the Company shall pay to the registered holders 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. For 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 his right to receive any fractional Rights or any fractional shares upon
exercise of a Right (except as provided above). 
  
 Item 16. Rights
of Action. All rights of action in respect of this Agreement, excepting the rights of action given to the Rights Agent under Section 18 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), without the consent of the Rights Agent or of the holder of any other
Right Certificate (or, prior to the Distribution Date, of the Common Shares), may, in his own behalf and for his own benefit, enforce, 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 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. 
  
 Item 17. 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 of the Rights Agent if surrendered at the principal office of the Rights Agent, duly endorsed or accompanied by a proper instrument of transfer; 
  
 c. the Company and the Rights Agent may deem and treat the person in whose
name the Right Certificate (or, prior to the Distribution Date, the associated Common Shares certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the
Right Certificates or the associated Common Shares certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent shall be affected by any notice to the contrary; and

  

 17 

 (d) 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, decree or ruling issued by a
court or competent jurisdiction or by a governmental, regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any governmental authority, prohibiting or otherwise restraining
performance of such obligation; provided, however, the Company must use its best efforts to have any such order, decree or ruling lifted or otherwise overturned as soon as possible. 
  
 Item 18. Right Certificate Holder Not Deemed a Shareholder. No holder, as such, of any Right Certificate shall
be entitled to vote, receive dividends or other distributions 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 shareholder of the Company or any right to vote for the election of directors or upon
any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting shareholders (except as provided in Section 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. 
  
 Item 19. Concerning the Rights Agent. 
  
 a. The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from
time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the administration and execution of this Agreement and the exercise and performance of its duties hereunder. The Company also
agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, or expense, incurred without negligence, bad faith or willful misconduct on the part of the Rights Agent, for anything done or omitted by the Rights
Agent in connection with the acceptance and administration of this Agreement, including the costs and expenses of defending against any claim of liability in the premises. 
  
 b. The Rights Agent shall be protected and shall incur no liability for, or in respect of any action taken, suffered or
omitted by it in connection with, its administration of this Agreement in reliance upon any Right Certificate or certificate for the Preferred Shares or Common Shares 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. 
  
 Item 20. Merger or Consolidation or Change of Name of Rights Agent. 
  
 a. Any corporation into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any corporation
resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any corporation succeeding to the stock transfer or 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 corporation 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 

  

 18 

 
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. 
  
 b. In case at any time the name of the Rights Agent shall be changed and at
such time any of the Right Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Right Certificates so countersigned; and in case at that time any of the Right
Certificates shall not have been countersigned, the Rights Agent may countersign such Right Certificates either in its prior name or in its changed name; and in all such cases such Right Certificates shall have the full force provided in the Right
Certificates and in this Agreement. 
  
 Item 21. Duties of Rights
Agent. The Rights Agent undertakes the duties and obligations imposed by this Agreement upon the following terms and conditions, by all of which the Company and the holders of Right Certificates, by their acceptance thereof, shall be
bound: 
  
 a. The Rights Agent may consult with legal counsel (who
may be legal counsel for the Company), and the opinion of such counsel shall be full and complete authorization and protection to the Rights Agent as to any action taken or omitted by it in good faith and in accordance with such opinion. 

 
 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 be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically
prescribed) may be deemed to be conclusively proved and established by a certificate signed by the Chairman of the Board, the Chief Executive Officer, the President, the Chief Financial Officer or any Vice President and by the Treasurer or any
Assistant Treasurer or the Secretary or any Assistant Secretary of the Company and delivered to the Rights Agent; and such certificate shall be full authorization to the Rights Agent for any action taken or suffered in good faith by it under the
provisions of this Agreement in reliance upon such certificate. 
  
 c. The Rights Agent shall be liable hereunder to the Company and any other Person only for its own negligence, bad faith or willful misconduct. 
  
 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 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 be under any responsibility in respect of the validity of this Agreement or the execution and
delivery hereof (except the due authorization, execution and delivery hereof by the Rights Agent) or in respect of the validity or execution of any Right Certificate (except its countersignature thereof); nor shall it be responsible for any breach
by the Company of any covenant or condition contained in this Agreement or in any Right Certificate; nor shall it be responsible for any change in the exercisability of the Rights (including the Rights becoming void pursuant to Section 11(a)(ii)
hereof) or any adjustment in the terms of the Rights (including the manner, method or amount thereof) provided for in Section 3, 11, 13, 23 or 24, or the ascertaining of the existence of facts that would require any such change or adjustment (except
with respect to the exercise of Rights evidenced by Right Certificates after actual notice that such change or adjustment is required); nor shall it by any act hereunder be deemed to 

  

 19 

 
make any representation or warranty as to the authorization or reservation of any Preferred Shares or other securities to be issued pursuant to this
Agreement or any Right Certificate or as to whether any Preferred Shares or other securities will, when 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 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, the Chief Financial Officer any Vice President, the Secretary, any Assistant Secretary, the Treasurer or
any Assistant Treasurer of the Company, and to apply to such officers for advice or instructions in connection with its duties, and it shall not be liable for any action taken or suffered by it in good faith in accordance with instructions of any
such officer or for any delay in acting while waiting for those instructions. 
  
 h. The Rights Agent and any shareholder, director, officer or employee of the Rights Agent may buy, sell or deal in, or act as the transfer agent for, any of the Rights, Common Shares or other securities of the
Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it were not Rights Agent under this Agreement. Nothing
herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other legal entity. 
  
 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 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 resulting from any such act, default, neglect or
misconduct, provided reasonable care was exercised in the selection and continued employment thereof. 
  
 Item 22. 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 by registered or certified mail, and to the holders of the Right Certificates 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 by registered or certified mail, and to the holders of the Right Certificates by first-class
mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor to the 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 Right Certificate for
inspection by the Company), then the registered holder of any Right Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a
court, shall be (a) a corporation organized and doing business under the laws of the United States or of the State of Minnesota or the State of New York (or of any other state of the United States so long as such corporation is authorized to do
business as a banking institution in the State of Minnesota or the State of New York), in good standing, having an office or agency in the State of Minnesota or the State of New York, which is authorized under such laws to exercise corporate trust
or stock transfer powers and is subject to 

  

 20 

 
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 (b) an Affiliate of a corporation described in clause (a) of this sentence. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally
named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any further assurance, conveyance,
act or deed necessary for the purpose. Not later than the effective date of any such appointment the Company shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the Common Shares, and mail a notice
thereof in writing to the registered holders of the Right Certificates. Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights
Agent or the appointment of the successor Rights Agent, as the case may be. 
  
 Item 23. 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. 
  
 Item 24. Redemption.

  
 a. The Rights may be redeemed by action of the Board of
Directors pursuant to subsection (b) of this Section 23 and shall not be redeemed in any other manner. 
  
 b. 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 $.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 with such conditions as the Board of Directors in its sole discretion may establish.
Notwithstanding anything contained in this Agreement to the contrary, the Rights shall not be exercisable after the first occurrence of a Section 11(a)(ii) Event until such time as the Company’s right of redemption hereunder has expired.

  
 c. Immediately upon the effectiveness of the action of the
Board of Directors of the Company ordering the redemption of the Rights pursuant to subsection (b) of this Section 23, and without any further action and without any notice, the right to exercise the Rights will terminate and the only right
thereafter of the holders of Rights shall be to receive the Redemption Price. 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 the effectiveness of the action of the Board of Directors ordering the redemption of the Rights pursuant to subsection (b), 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. Each such notice of redemption will 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, and other than in connection with the purchase of Common
Shares prior to the Distribution Date. 
  

 21 

 Item 25. 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 void pursuant to the provisions of Section 11(a)(ii) hereof) for Common Shares of the Company at an exchange ratio of one Common
Share per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (such exchange ratio being hereinafter referred to as the “Exchange Ratio”). Notwithstanding the
foregoing, the Board of Directors shall not be empowered to effect 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, any entity holding
Common Shares for or pursuant to the terms of any such plan, or any trustee, administrator or fiduciary of such a plan), together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or more of the Common Shares of
the Company 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 of the Company 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 of the Company 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 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 equivalent preferred shares, as such term
is defined in Section 11(b) hereof) for some or all of the Common Shares of the Company exchangeable for Rights, at the initial rate of one one-hundredth of a Preferred Share (or equivalent preferred share) for each Common Share of the Company, 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 of the Company shall have the same voting
rights as one Common Share of the Company. 
  
 d. In the event
that there shall not be sufficient Common Shares of the Company or Preferred Shares issued but not outstanding or authorized but unissued 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 of the Company or Preferred Shares for issuance upon exchange of the Rights. 
  
 e. The Company shall not be required to issue fractions of Common Shares of the Company or to distribute certificates which evidence fractional Common
Shares of the Company. In lieu of such fractional Common Shares of the Company, the Company shall pay to the registered holders of the Right Certificates with regard to which such fractional Common Shares of the Company would otherwise be issued an
amount in cash equal to the same fraction of the current market value of a whole Common 

  

 22 

 
Share of the Company. For the purposes of this paragraph (e), the current market value of a whole Common Share of the Company shall be the closing price of a
Common Share of the Company (as determined pursuant to the second sentence of Section 11(d) hereof) for the Trading Day immediately prior to the date of exchange pursuant to this Section 24. 
  
 Item 26. Notice of Certain Events. 
  
 a. In case the Company shall propose, after the Distribution Date, (i) to
pay any dividend payable in stock of any class to the holders of Preferred Shares or to make any other distribution to the holders of Preferred Shares (other than a regular quarterly cash dividend), (ii) to offer to the holders of Preferred Shares
rights or warrants to subscribe for or to purchase any additional Preferred Shares or shares of stock of any class or any other securities, rights or options, (iii) to effect any reclassification of Preferred Shares (other than a reclassification
involving only the subdivision of outstanding Preferred Shares), (iv) to effect any consolidation or merger into or with (other than a merger of a Subsidiary into or with the Company), to effect any share exchange 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, or
(v) to effect the liquidation, dissolution or winding up of the Company, then, in each such case, the Company shall give to each holder of a Right Certificate, in accordance with Section 26 hereof, a 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, share exchange, sale, transfer, liquidation, dissolution, or winding up is to
take place and the date of participation therein by the holders of the 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 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 Preferred Shares, whichever shall be the earlier. 
  
 b. In case any of Section 11(a)(ii) Event or Section 13 Event shall occur, then, in any such case, (i) 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 include a brief summary of the Section 11(a)(ii) Event or Section 13 Event, as the case may be, and the consequences thereof to holders of Rights, and (ii) all references in the preceding
paragraph to Preferred Shares shall be deemed thereafter to refer to Common Shares and/or, if appropriate, other securities. 
  
 Item 27. Notices. 
  
 a. Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Right Certificate to or on the Company
shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows: 
  
 Pentair, Inc. 
 5500 Wayzata Boulevard 
 Suite 800 
 Golden Valley, Minnesota 55416 
 Attention: Secretary 
  

 23 

 b. 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 first-class mail, postage prepaid, addressed (until another address is filed in writing with the
Company) as follows: 
  
 Wells Fargo Bank, N.A. 
 Shareowner Services 
 161 North Concord
Exchange 
 South St. Paul, MN 55075 
 Attention: Pentair Account Manager 
  
 c. Notices or
demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Right Certificate shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the
address of such holder as shown on the registry books of the Company. 
  
 Item
28. Supplements and Amendments. Prior to such time as any Person becomes an Acquiring Person and subject to the penultimate sentence of this Section 27, the Company may and the Rights Agent shall, if the Company so directs,
supplement or amend any provision of this Agreement without the approval of any holders of certificates representing Common Shares of the Company. Without limiting the foregoing, the Company may at any time prior to such time as any Person becomes
an Acquiring Person amend this Agreement to lower the thresholds set forth in Sections 1(a) and 3(a) hereof from 15% to not less than 10%, with appropriate exceptions for Persons then beneficially owning Common Shares of the Company constituting a
percentage of the number of Common Shares then outstanding equal to or in excess of the new threshold. From and after such time as any Person becomes an Acquiring Person and subject to the penultimate sentence of this Section 27, the Company 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 (i) to cure any ambiguity, (ii) to correct or supplement any provision contained herein which may be
defective or inconsistent with any other provision herein, (iii) to shorten or lengthen any time period hereunder, or (iv) to change or supplement the provisions hereunder in any manner which the Company may deem necessary or desirable and which
shall not adversely affect the interests of the holders of Right Certificates (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person); provided, that from and after such time as any Person becomes an Acquiring
Person this Agreement may not be supplemented or amended to lengthen, pursuant to clause (iii) of this sentence, (A) a time period relating to when the Rights may be redeemed at such time as the Rights are not then redeemable, or (B) any other time
period unless such lengthening is for the purpose of protecting, enhancing or clarifying the rights of, and/or the benefits to, the holders of Rights. Upon the delivery of a certificate from an appropriate officer of the Company which states that
the proposed supplement or amendment is in compliance with the terms of this Section 27, the Rights Agent shall execute such supplement or amendment. Notwithstanding anything contained in this Agreement to the contrary, no supplement or amendment
shall be made that changes the Redemption Price, the Purchase Price or the Final Expiration Date. Prior to the Distribution Date, the interests of the holders of Rights shall be deemed coincident with the interests of the holders of Common Shares of
the Company. 
  
 Item 29. 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. 
  

 24 

 Item 30. Benefits of this Agreement. Nothing in this Agreement shall be construed to give to
any person or corporation other than the Company, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Shares of the Company) 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 of the Company). 
  
 Item 31. Severability. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated. 
  
 Item 32.
Governing Law. This Agreement and each Right Certificate issued hereunder shall be deemed to be a contract made under the laws of the State of Minnesota 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 and shall be subject to the exclusive jurisdiction of the courts of, and United States Federal Courts sitting in, such State. 
  
 Item 33. Counterparts. This Agreement may be executed in any
number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 
  
 Item 34. 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. 
  
 Item 35. Determinations and Actions by the Board of Directors. For all purposes of this Agreement, any
calculation of the number of Common Shares of the Company outstanding at any particular time, including for purposes of determining the particular percentage of such outstanding Common Shares of which any Person is the Beneficial Owner, shall be
made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange Act. The Board of Directors of the Company 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 to the Company, or as may be necessary or advisable in the administration of this Agreement, including, without limitation, the right and power to (a) interpret the
provisions of this Agreement, and (b) make all determinations 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 and any determination as to
whether actions or any Person shall be such as to cause such Person to beneficially own shares held by another Person). All such actions, calculations, interpretations and determinations (including, for purposes of clause (ii) below, all omissions
with respect to the foregoing) which are done or made by the Board of Directors of the Company in good faith, shall (i) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all other parties, and (ii) not
subject the Board of Directors of the Company to any liability to the holders of the Rights. 
  

 25 

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

									
	 	 	 	 	 PENTAIR, INC.

	 Attest:
	 	 	 	 
					
	By:	 	 /s/ Michael G. Meyer
	 	 	 	By:	 	 /s/ Louis L. Ainsworth

	 	 	 Name: Michael G. Meyer
 Title: Vice President Treasury and Tax
	 	 	 	 	 	 Name: Louis L. Ainsworth
 Title: Senior Vice President, Secretary and
           General Counsel

			
	 	 	 	 	 WELLS FARGO BANK, N.A.

	 Attest:
	 	 	 	 
					
	By:	 	 /s/ Susan J. Roeder
	 	 	 	By:	 	 /s/ Barbara M. Novak

	 	 	 Name: Susan J. Roeder
 Title: Assistant Secretary
	 	 	 	 	 	 Name: Barbara M. Novak
 Title: Vice President

  

 26 

 EXHIBIT A 
  

Terms of the Series A Junior Participating Preferred Stock, 
 $0.10 par value, of 
 Pentair, Inc. 
  
 Series A Junior Participating Preferred Stock 
  
 1. Designation and Amount. There is hereby created a series of Preferred Shares that shall be designated as
“Series A Junior Participating Preferred Stock”, par value $0.10 per share (the “Series A Preferred Stock”), and the number of shares constituting such series shall be 2,500,000. 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 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 into Series A Preferred Stock. 
  
 2. Dividends and Distributions. 
  
 (A) The holders of shares of Series A Preferred Stock, in preference to the holders of shares of Common Stock and of any
other junior 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 (i) such day after the end of each calendar quarter as the
Board of Directors determines for the payment of cash dividends on the Common Stock or (ii) if the Board of Directors does not declare a cash dividend on the Common Stock for the quarter, the first business days of January, April, July and October
with respect to the preceding calendar quarter 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 Preferred Stock, in an amount per share (rounded to the nearest cent) equal to the greater of (i) $1.00 or (ii) subject to the provision for adjustment hereinafter set forth, 100 times the aggregate per share amount
of all cash dividends, and 100 times the aggregate per share amount (payable in kind) of all noncash dividends or other distributions, other than a dividend payable in shares of Common Stock or a subdivision of the outstanding shares of Common Stock
(by reclassification or otherwise), declared on the Common Stock since the immediately preceding Quarterly Dividend Payment Date, or, with respect to the first Quarterly Payment Date, since the first 

  

 A-1 

 
issuance of any share or fraction of a share of Series A Preferred Stock. In the event the Corporation shall at any time after the close of business on
December 10, 2004 (the “Rights Declaration Date”) (a) declare any dividend on Common Stock payable in shares of Common Stock, (b) subdivide the outstanding Common Stock, or (c) combine the outstanding Common Stock into a smaller number of
shares, then in each such case the amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event under clause (ii) of the preceding sentence shall be adjusted by multiplying such amount by a fraction the
numerator of which is the number of shares of Common Stock that are 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
Preferred Stock as provided in paragraph (A) above immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock); provided that, in the event no dividend or distribution
shall have been declared on the Common Stock during the period between any Quarterly Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, a dividend of $1.00 per share on the Series A Preferred Stock shall nevertheless be
payable on such subsequent Quarterly Dividend Payment Date. 
  
 (C) Dividends shall begin to accrue and be cumulative on outstanding shares of Series A Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issue of such shares of Series A Preferred Stock, 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 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 Preferred 

  

 A-2 

 
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 record date for the determination of holders of shares of Series A Preferred Stock entitled to receive payment of a dividend or distribution
declared thereon, which record date shall be no more than 30 days prior to the date fixed for the payment thereof. 
  
 3. Voting Rights. The holders of shares of Series A Preferred Stock shall have the following voting rights: 
  
 (A) Each share of Series A Preferred Stock shall entitle the holder thereof
to one vote on all matters submitted to a vote of the shareholders of the Corporation. 
  
 (B) Except as otherwise provided herein, in any other resolution of the Board of Directors creating a series of Preferred Stock or any similar stock, or by law, the holders of shares of Series A Preferred Stock shall
vote as a separate class on all matters submitted to a vote of shareholders of the Corporation. 
  
 4. Certain Restrictions. 
  
 (A) Whenever quarterly dividends or other dividends or distributions payable on the Series A 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 Preferred Stock outstanding shall have been paid in full, the Corporation shall not: 
  
 (i) declare or pay dividends on, make any other distributions on, or redeem or purchase or
otherwise acquire for consideration any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock; 
  
 (ii) declare or pay dividends on 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 Preferred Stock, except dividends paid ratably on the Series A Preferred Stock and all such parity stock on which dividends are payable or in arrears in proportion to the total amounts to
which the holders of all such shares are then entitled; 
  
 (iii) redeem or
purchase or otherwise acquire for consideration shares of any stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Preferred Stock, provided that the Corporation may at any time
redeem, purchase or otherwise acquire shares of any such 

  

 A-3 

 
parity stock in exchange for shares of any stock of the Corporation ranking junior to or on a parity with (both as to dividends or upon dissolution,
liquidation or winding up) the Series A Preferred Stock; or 
  
 (iv) purchase or
otherwise acquire for consideration any shares of Series A Preferred Stock, or any shares of stock ranking on a parity with the Series A Preferred Stock, except in accordance with a purchase offer made in writing or by publication (as determined by
the Board of Directors) to all holders of such shares upon such terms as the Board of Directors, after consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall
determine in good faith will result in fair and equitable treatment among the respective series or classes. 
  
 (B) The Corporation shall not permit any corporation of which an amount of voting securities sufficient to elect at least a majority of the directors of
such corporation is beneficially owned, directly or indirectly, by the Corporation or otherwise controlled by 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. 
  
 5. Reacquired Shares. All shares of Series A Preferred Stock that shall at any time have been reacquired by the Corporation shall, after such
reacquisition, have the status of authorized but unissued shares of Preferred Stock of the Corporation, without designation as to series, and may be reissued as part of a new series of Preferred Stock to be created by resolution or resolutions of
the Board of Directors, subject to the conditions and restrictions on issuance set forth herein. 
  
 6. Liquidation, Dissolution or Winding Up. Upon any liquidation, dissolution or winding up of the Corporation, no distribution shall be made (A) to
the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock unless, prior thereto, the holders of shares of Series A Preferred Stock shall have received $100
per share, plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared, to the date of such payment, provided that the holders of shares of Series A Preferred Stock shall be entitled to receive an
aggregate amount per share, subject to the provision for adjustment hereinafter set forth, equal to 100 times the aggregate amount to be distributed per share to holders of shares of Common Stock, or (B) to the holders of shares of stock ranking on
a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Preferred Stock, except distributions made ratably on the Series A Preferred Stock and all other such parity stock in proportion to the total amounts
to which the holders of all such shares are entitled upon such liquidation, dissolution or winding up. In the event the Corporation shall at any time after the Rights Declaration Date 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 Preferred Stock were entitled immediately prior to such event under the proviso in clause (A) of the preceding sentence shall be adjusted by
multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately
prior to such event. 
  

 A-4 

 7. Consolidation, Merger, etc. In case the Corporation shall enter into any consolidation, merger,
combination, share exchange 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 the shares of Series A Preferred Stock shall at
the same time be similarly exchanged or changed in an amount per share (subject to the provision for adjustment hereinafter set forth) equal to 100 times the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as
the case may be, into which or for which each share of Common Stock is changed or exchanged. In the event the Corporation shall at any time after the Rights Declaration Date (A) declare any dividend on Common Stock payable in shares of Common Stock,
(B) subdivide the outstanding Common Stock, or (C) combine the outstanding shares of Common Stock into a smaller number of shares, 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 Preferred Stock shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock that are 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. 
  
 8. No Redemption. Except as provided in Section 302A.671, Subdivision 6 of the Minnesota Business Corporation Act, the shares of Series A Preferred Stock shall not be mandatorily redeemable. 
  
 9. Amendment. To the fullest extent permitted by applicable law, prior
to such time as shares of Series A Preferred Stock are issued and outstanding, the Board of Directors may modify, amend, alter or revoke any of the number of shares of Series A Preferred Stock, the powers, preferences or special rights of the Series
A Preferred Stock or the other terms of the Series A Preferred Stock. From and after such time as shares of Series A Preferred Stock are issued and outstanding, the Restated Articles of Incorporation of the Corporation shall not be amended in any
manner that would materially alter or change the powers, preferences or special rights of the Series A 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 Preferred Stock, voting together as a single class. 
  
 10. Fractional Shares. Series A Preferred Stock may be issued in fractions of a share which shall entitle the holder, in proportion to such holder’s fractional shares, to exercise voting rights, receive dividends, participate in
distributions and to have the benefit of all other rights of holders of Series A Preferred Stock. 
  

 A-5 

 EXHIBIT B 
  

[Form of Right Certificate] 
  

			
	Certificate No. R-	 	             Rights

  
 NOT EXERCISABLE
AFTER JANUARY 28, 2015 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $.001 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. 
  
 Right Certificate 
  
 PENTAIR, INC. 
  
 This certifies that
                        , or registered assigns, is the registered owner of the number of Rights set forth above, each of
which entitles the owner thereof, subject to the terms, provisions and conditions of the Rights Agreement, dated as of December 10, 2004, and as such agreement may be amended (the “Rights Agreement”), between Pentair, Inc., a Minnesota
corporation (the “Company”), and Wells Fargo Bank, N.A. (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.,
Minneapolis, Minnesota time, on January 28, 2015, at the principal office of the Rights Agent, or at the office of its successor as Rights Agent, one one-hundredth of one fully paid nonassessable share of Series A Junior Participating Preferred
Stock, par value $0.10 per share (“Preferred Shares”), of the Company, at a purchase price of $240 per one one-hundredth of a Preferred Share (the “Purchase Price”), upon presentation and surrender of this Right Certificate with
the Form of Election to Purchase duly executed. The number of Rights evidenced by this Right Certificate (and the number of one one-hundredths 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 December 10, 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-hundredths 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. 
  
 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 above-mentioned offices of the Rights Agent. 
  

 B-1 

 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, the Rights evidenced by this Certificate may be redeemed by the Company at a redemption price of $.001 per Right. 
  
 The Board of Directors of the Company may, at its option, at any time after any Person becomes an Acquiring Person, but
prior to such Person’s acquisition of 50% or more of the outstanding shares of Common Stock, par value $0.16 2/3 per share (“Common Stock”), of the Company, exchange the Rights evidenced by the certificates for Preferred Shares or
shares of Common Stock, at an exchange ratio of one one-hundredth of a Preferred Share or one share of Common Stock, as the case may be, per Right, subject to adjustment, as provided in the Rights Agreement. 
  
 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-hundredth 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 shareholder of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at
any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting shareholders (except as provided in the Rights Agreement), or to receive dividends, distributions 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. 
  
 WITNESS the facsimile signature of the proper officers of the Company
and its corporate seal. Dated as of                 ,             . 
  

									
	 ATTEST:
	 	 	 	 PENTAIR, INC.

				
	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

  

 B-2 

 Countersigned: 
  

			
	 WELLS FARGO BANK, N.A.

		
	 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. 
  
 Dated:                     ,
             
  

	
	
	 
	 Signature

  
 Signature Guaranteed:

  
 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 PENTAIR, INC.: 
  
 The undersigned hereby irrevocably elects to exercise
                             Rights represented by this Right Certificate to purchase the Preferred
Shares issuable upon the exercise of such Rights 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 a member firm of a registered national
securities exchange, a member of the National Association of Securities Dealers, Inc., or a commercial bank or trust company having an office or correspondent in the United States. 
  

 B-5 

 [Form of Reverse Side of Right Certificate — continued] 
  
 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

  
 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 
  

PENTAIR, INC. 
  
 SUMMARY OF RIGHTS TO PURCHASE 
 PREFERRED SHARES 
  
 On December 10, 2004, the Board of Directors of Pentair, Inc. (the
“Company”) declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of common stock, par value $.16 2/3 per share (“Common Shares”), of the Company. The dividend is payable upon
the close of business on January 28, 2005 to the shareholders of record upon the close of business on January 28, 2005 (the “Record Date”). Each Right entitles the registered holder to purchase from the Company one one-hundredth of a share
of Series A Junior Participating Preferred Stock, $0.10 par value (“Preferred Shares”), of the Company, at a price of $240 per one one-hundredth of a Preferred Share, subject to adjustment (the “Purchase Price”). The description
and terms of the Rights are set forth in a Rights Agreement (the “Rights Agreement”) between the Company and Wells Fargo Bank, N.A., 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 (other than the Company, a subsidiary of the Company or an employee benefit plan of the Company or a subsidiary) (an “Acquiring Person”) has acquired beneficial ownership of 15% or
more of the outstanding Common Shares (the “Shares Acquisition Date”) or (ii) 10 business days (or such later date as may be determined by action of the Company’s 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 (other than the Company, a subsidiary
of the Company or an employee benefit plan of the Company or a subsidiary) of 15% or more of such 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. 
  
 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, 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, 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 January 28, 2015 (the “Final Expiration Date”), unless the
Rights are earlier redeemed or exchanged 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 

  

 C-1 

 
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 quarterly cash dividends 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-hundredths 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 the exercise of Rights will not be redeemable. Each Preferred Share will be entitled to a minimum preferential quarterly
dividend payment of $1.00 per share but will be entitled to an aggregate dividend of 100 times the dividend declared per Common Share. In the event of liquidation, the holders of the Preferred Shares will be entitled to a minimum preferential
liquidation payment of $100 per share but will be entitled to an aggregate payment of 100 times the payment made per Common Share. Each Preferred Share will have one vote per share, voting as a separate class on all matters submitted to holders of
Common Shares. Finally, in the event of any merger, consolidation or other transaction in which Common Shares are exchanged, each Preferred Share will be entitled to receive 100 times the amount received per Common Share. These rights are protected
by customary antidilution provisions. 
  
 Because of the nature of
the Preferred Shares’ dividend and liquidation rights, the economic value of the one one-hundredth interest in a Preferred Share purchasable upon exercise of each Right should approximate the value of one Common Share. 
  
 In the event that any person becomes an Acquiring Person (a “Flip-In
Event”), each holder of a Right (except as otherwise provided in the Rights Agreement) will thereafter have the right to receive upon exercise that number of Common Shares (or, in certain circumstances cash, property or other securities of the
Company or a reduction in the Purchase Price) having a market value of two times the then current Purchase Price. Notwithstanding any of the foregoing, following the occurrence of a Flip-In Event all Rights that are, or (under certain circumstances
specified in the Rights Agreement) were, or subsequently become beneficially owned by an Acquiring Person, related persons and transferees will be null and void. 
  

 C-2 

 In the event that, at any time following the Shares Acquisition Date, (i) the Company is acquired in a
merger or other business combination transaction or (ii) 50% or more of its consolidated assets or earning power are sold (the events described in clauses (i) and (ii) are herein referred to as “Flip-Over Events”), proper provision will be
made so that each holder of a Right (except as otherwise provided in the Rights Agreement) will thereafter have the right to receive, upon the exercise thereof at the then current Purchase Price, that number of shares of common stock of the
acquiring company which at the time of such transaction will have a market value of two times the then current Purchase Price. 
  
 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-hundredth of a Preferred Share, which may, at the election of the Company be evidenced by depositary receipts). 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. 
  
 The Purchase Price is payable by certified check, cashier’s check, bank draft or money order or, if so provided by the Company, the Purchase Price
following the occurrence of a Flip-In Event and until the first occurrence of a Flip-Over Event may be paid in Common Shares having an equivalent value. 
  
 At any time after a person becomes an Acquiring Person and prior to the acquisition by such Acquiring Person of 50% or more of the outstanding Common
Shares, the Board of Directors of the Company may exchange the Rights (other than Rights owned by any Acquiring Person which have become void), in whole or in part, at an exchange ratio of one Common Share, or one one-hundredth of a Preferred Share
(or of a share of a class or series of the Company’s preferred stock having equivalent rights, preferences and privileges), per Right (subject to adjustment). 
  
 At any time prior to a person becoming an Acquiring Person, the Board of Directors of the Company may redeem the Rights in
whole, but not in part, at a price of $.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. 
  
 Other than amendments that would change the Redemption Price, the Purchase
Price or the Final Expiration Date of the Rights, 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, including an amendment to lower the threshold for exercisability of
the Rights from 15% to not less than 10%, with appropriate exceptions for any person then beneficially owning a percentage of the number of Common Shares then outstanding equal to or in excess of the new threshold, 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. 
  
 Until a Right is exercised, the holder thereof, as such, will have no rights as a shareholder of the Company, including, without limitation, the right to
vote or to receive dividends. 
  
 A copy of the Rights Agreement
has been filed with the Securities and Exchange Commission as an Exhibit to a Registration Statement on Form 8-A filed with respect to the Rights. A copy of the Rights Agreement is also 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 Rights Agreement, which is hereby incorporated herein by reference. 

  

 C-3

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