Document:

Wolverine World Wide Exhibit 10.3 to Form 8-K - 12/17/08

EXHIBIT 10.3

WOLVERINE WORLD WIDE, INC

EXECUTIVE SEVERANCE AGREEMENT

          THIS AGREEMENT is entered into as of the _________ day of ___________, _____ (the "Effective Date"), by and between Wolverine World Wide, Inc., a Delaware corporation ("Wolverine"), and ______________________ ("Executive").

W I T N E S S E T H:

          WHEREAS, Executive currently serves as a key employee of Wolverine and/or its subsidiaries and his/her services and knowledge are valuable to Wolverine in connection with the management of one or more of Wolverine's principal operating facilities, divisions, or subsidiaries; and

          WHEREAS, Wolverine considers the establishment and maintenance of a sound and vital management to be essential to protecting and enhancing the best interests of Wolverine and its stockholders; and

          WHEREAS, the Board has determined that it is in the best interests of Wolverine and its stockholders to secure Executive's continued services and to ensure Executive's continued dedication and objectivity in the event of any threat or occurrence of, or negotiation or other action that could lead to, or create the possibility of, a Change in Control (as hereafter defined) of Wolverine, without concern as to whether Executive might be hindered or distracted by personal uncertainties and risks created by any such possible Change in Control, and to encourage Executive's full attention and dedication to Wolverine and/or its subsidiaries, the Board has authorized Wolverine to enter into this Agreement.

          NOW, THEREFORE, WOLVERINE AND EXECUTIVE AGREE AS FOLLOWS:

          1.          Definitions.          As used in this Agreement, the following terms shall have the respective meanings set forth below:

          (a)          "Board" means the Board of Directors of the Company.

          (b)          "Cause" means (1) the willful and continued failure by Executive to substantially perform his or her duties with Company (other than any such failure resulting from Executive's incapacity due to physical or mental illness, or any such actual or anticipated failure resulting from Executive's termination for Good Reason) after a demand for substantial performance is delivered to Executive by the Board and/or its Chairman (which demand shall specifically identify the manner in which the Board and/or its Chairman believes that Executive has not substantially performed his or her duties); or (2) the willful engaging by Executive in gross misconduct materially and demonstrably injurious to the Company. For purposes of this Section, no act or failure to act on the part of Executive shall be considered "willful" unless done or omitted to be done by Executive not in good faith and without reasonable belief that his or her action(s)

or omission(s) was in the best interests of the Company. In addition, no termination of Executive's employment shall be for Cause unless the Company shall have provided to Executive written notice of its intent to terminate Executive's employment for Cause that includes a description of the events constituting Cause, and Executive shall not have cured such purported Cause (to the extent it is curable) to the reasonable satisfaction of the Board within ten (10) days after receipt of such notice. Notwithstanding the foregoing, Executive shall not be deemed to have been terminated for Cause unless and until the Company provides Executive with a copy of a resolution adopted by an affirmative vote of not less than three-quarters of the entire membership of the Board at a meeting of the Board called and held for the purpose (after reasonable notice to Executive and an opportunity for Executive, with counsel, to be heard before the Board), finding that in the good faith opinion of the Board the Executive has been guilty of conduct set forth in subsections (1) or (2) above, setting forth the particulars in detail. A determination of Cause by the Board shall not be binding upon or entitled to deference by any finder of fact in the event of a dispute, it being the intent of the parties that such finder of fact shall make an independent determination of whether the termination was for "Cause" as defined in (1) and (2) above.

          (c)          "Change in Control" means:

          (1) the acquisition by any individual, entity, or group (a "Person"), including any "person" within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), of beneficial ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act, of 20% or more of either (i) the then outstanding shares of common stock of the Company (the "Outstanding Company Common Stock") or (ii) the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors (the "Outstanding Company Voting Securities"); provided, however, that the following acquisitions shall not constitute a Change in Control: (a) any acquisition by the Company, (b) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, (c) any acquisition by any corporation pursuant to a reorganization, merger, or consolidation involving the Company, if, immediately after such reorganization, merger, or consolidation, each of the conditions described in clauses (i), (ii), and (iii) of subsection (3) shall be satisfied, or (d) any acquisition by the Executive or any group of persons including the Executive; and provided further that, for purposes of clause (a), if any Person (other than the Company or any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company) shall become the beneficial owner of 20% or more of the Outstanding Company Common Stock or 20% or more of the Outstanding Company Voting Securities by reason of an acquisition by the Company and such Person shall, after such acquisition by the Company, become the beneficial owner of any additional shares of the Outstanding Company

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Common Stock or any additional Outstanding Voting Securities, such additional beneficial ownership shall constitute a Change in Control;

          (2)          individuals who, as of the date hereof, constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of such Board; provided, however, that any individual who becomes a director of the Company subsequent to the date hereof whose election, or nomination for election by the Company's stockholders, was approved by the vote of at least three-quarters of the directors then comprising the Incumbent Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without objection to such nomination) shall be deemed to have been a member of the Incumbent Board; and provided further, that no individual who was initially elected as a director of the Company as a result of an actual or threatened election contest, as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act, or any other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board, shall be deemed to have been a member of the Incumbent Board;

          (3)          approval by the stockholders of the Company of a reorganization, merger, or consolidation unless, in any such case, immediately after such reorganization, merger, or consolidation, (i) more than 50% of the then outstanding shares of common stock of the corporation resulting from such reorganization, merger, or consolidation and more than 50% of the combined voting power of the then outstanding securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals or entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such reorganization, merger, or consolidation and in substantially the same proportions relative to each other as their ownership, immediately prior to such reorganization, merger, or consolidation, of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be, (ii) no Person (other than the Company, any employee benefit plan (or related trust) sponsored or maintained by the Company or the corporation resulting from such reorganization, merger, or consolidation (or any corporation controlled by the Company), or any Person which beneficially owned, immediately prior to such reorganization, merger, or consolidation, directly or indirectly, 20% or more of the Outstanding Company Common Stock or the Outstanding Company Voting Securities, as the case may be) beneficially owns, directly or indirectly, 20% or more of the then outstanding shares of common stock of such corporation or 20% or more of the combined voting power of the then outstanding securities of such corporation entitled to vote generally in the election of directors, and (iii) at least a majority of the members of the board of directors of the corporation resulting from such reorganization, merger, or consolidation were members of the

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Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such reorganization, merger, or consolidation; or

          (4)          approval by the stockholders of the Company of (i) a plan of complete liquidation or dissolution of the Company or (ii) the sale or other disposition of all or substantially all of the assets of the Company other than to a corporation with respect to which, immediately after such sale or other disposition, (a) more than 50% of the then outstanding shares of common stock thereof and more than 50% of the combined voting power of the then outstanding securities thereof entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such sale or other disposition and in substantially the same proportions relative to each other as their ownership, immediately prior to such sale or other disposition, of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be,(b) no Person (other than the Company, any employee benefit plan (or related trust) sponsored or maintained by the Company or such corporation (or any corporation controlled by the Company), or any Person which beneficially owned, immediately prior to such sale or other disposition, directly or indirectly, 20% or more of the Outstanding Company Common Stock or the Outstanding Company Voting Securities, as the case may be) beneficially owns, directly or indirectly, 20% or more of the then outstanding shares of Common stock thereof or 20% or more of the combined voting power of the then outstanding securities thereof entitled to vote generally in the election of directors and (c) at least a majority of the members of the board of directors thereof were members of the Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such sale or other disposition.

Notwithstanding anything contained in this Agreement to the contrary, if Executive's employment is terminated prior to a Change in Control and Executive reasonably demonstrates that such termination was at the request of or in response to a third party who has indicated an intention or taken steps reasonably calculated to effect a Change in Control (a "Third Party") who effectuates a Change in Control, then for all purposes of this Agreement, the date of a Change of Control shall mean the date immediately prior to the date of such termination of Executive's employment.

          (d)          "Code" means the Internal Revenue Code of 1986, as amended.

          (e)          "Common Stock" means the common stock of the Company, $1 par value per share.

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          (f)          "Company" means Wolverine World Wide, Inc., a Delaware corporation, and any corporation or other entity in which Wolverine World Wide, Inc. has a direct or indirect ownership interest of 50% or more of the total combined voting power of the then outstanding securities of such corporation or other entity entitled to vote generally in the election of directors.

          (g)          "Date of Termination" means the effective date on which Executive's employment by the Company terminates in a manner constituting a "Separation from Service" as that term is defined by Section 409A of the Code as specified in a Notice of Termination by the Company or Executive, as the case may be. Notwithstanding the previous sentence, (i) if the Executive's employment is terminated for Disability, as defined in Section 1(h), then such Date of Termination shall be no earlier than thirty (30) days following the date on which a Notice of Termination is received, and (ii) if the Executive's employment is terminated by the Company other than for Cause, then such Date of Termination shall be no earlier than thirty (30) days following the date on which a Notice of Termination is received.

          (h)          "Disability" means Executive's failure to substantially perform his/her duties with the Company on a full-time basis for at least one hundred eighty (180) consecutive days as a result of Executive's incapacity due to mental or physical illness.

          (i)          "Good Reason" means, without Executive's express written consent, the occurrence of any of the following events:

          (1)          (i)          the assignment to Executive of any duties inconsistent in any material adverse respect with Executive's position(s), duties, responsibilities, or status with the Company immediately prior to such Change in Control, (ii) a material adverse change in Executive's reporting responsibilities, titles or offices with the Company as in effect immediately prior to such Change in Control, (iii) any removal or involuntary termination of Executive by the Company otherwise than as expressly permitted by this Agreement (including any purported termination of employment which is not effected by a Notice of Termination), or (iv) any failure to re-elect Executive to any position with the Company held by Executive immediately prior to such Change in Control;

          (2)          a reduction by the Company in Executive's rate of annual base salary as in effect immediately prior to such Change in Control or as the same may be increased from time to time thereafter;

          (3)          any requirement of the Company that Executive (i) be based anywhere other than the facility where Executive is located at the time of the Change in Control or reasonably equivalent facilities within Kent County, Michigan or (ii) travel for the business of the Company to an extent substantially more burdensome than the travel obligations of Executive immediately prior to such Change in Control;

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          (4)          the failure of the Company to continue the Company's executive incentive plans or bonus plans in which Executive is participating immediately prior to such Change in Control or a reduction of the Executive's target incentive award opportunity under the Company's Amended and Restated Executive Long-Term Incentive Plan (3-Year Bonus Plan) and Amended and Restated Executive Short-Term Incentive Plan (Annual Bonus Plan) (collectively, annual bonus plans) or other bonus plan adopted by the Company, unless Executive is permitted to participate in other plans providing Executive with substantially comparable benefits or receives compensation as a substitute for such plans providing Executive with a substantially equivalent economic benefit;

          (5)          the failure of the Company to (i) continue in effect any employee benefit plan or compensation plan in which Executive is participating immediately prior to such Change in Control, unless Executive is permitted to participate in other plans providing Executive with substantially comparable benefits or receives compensation as a substitute for such plans providing Executive with a substantially equivalent economic benefit, or the taking of any action by the Company which would adversely affect Executive's participation in or materially reduce Executive's benefits under any such plan, (ii) provide Executive and Executive's dependents with welfare benefits (including, without limitation, medical, prescription, dental, disability, salary continuance, employee life, group life, accidental death and travel accident insurance plans and programs) in accordance with the most favorable plans, practices, programs, and policies of the Company in effect for Executive immediately prior to such Change in Control, (iii) provide fringe benefits in accordance with the most favorable plans, practices, programs, and policies of the Company in effect for Executive immediately prior to such Change in Control, or (iv) provide Executive with paid vacation in accordance with the most favorable plans, policies, programs and practices of the Company as in effect for Executive immediately prior to such Change in Control;

          (6)          the failure of the Company to pay any amounts owed Executive as salary, bonus, deferred compensation or other compensation;

          (7)          the failure of the Company to obtain an assumption agreement from any successor as contemplated in Section 9(b);

          (8)          any purported termination of Executive's employment which is not effected pursuant to a Notice of Termination which satisfies the requirements of a Notice of Termination; or

          (9)          any other material breach by Company of its obligations under this Agreement.

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For purposes of this Agreement, any good faith determination of Good Reason made by Executive shall be conclusive on the parties; provided, however, that an isolated and insubstantial action taken in good faith and which is remedied by the Company within ten (10) days after receipt of notice thereof given by Executive shall not constitute Good Reason. Any event or condition described in this Section 1(g) which occurs prior to a Change in Control, but which Executive reasonably demonstrates was at the request of or in response to a Third Party who effectuates a Change in Control or who has indicated an intention or taken steps reasonably calculated to effect a Change in Control, shall constitute Good Reason following a Change in Control for purposes of this Agreement notwithstanding that it occurred prior to the Change in Control.

          (j)          "Nonqualifying Termination" means a termination of Executive's employment (1) by the Company for Cause, (2) by Executive for any reason other than for Good Reason with Notice of Termination, (3) as a result of Executive's death, (4) by the Company due to Executive's Disability, unless within thirty (30) days after Notice of Termination is provided to Executive after such Disability Executive shall have returned to substantial performance of Executive's duties on a full-time basis, or (5) as a result of Executive's Retirement. For purposes of this Agreement, termination by the Company shall not include a transfer of employment between subsidiaries of Wolverine or between Wolverine and its subsidiaries. The terms of such transfer, however, may serve as the basis for termination of employment by Executive for Good Reason.

          (k)          "Notice of Termination" means a written notice by the Company or Executive, as the case may be, to the other, which (1) indicates the specific reason for Executive's termination, (2) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive's employment, and (3) specifies the termination date. The failure by Executive or the Company to set forth in such notice any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of Executive or the Company hereunder or preclude Executive or the Company from asserting such fact or circumstance in enforcing Executive's or the Company's rights hereunder.

          (l)          "Positive Spread" means the spread between the exercise price of the options held by Executive under the 1993, 1995, 1997, 1999, 2001, 2003 or 2005 Stock Incentive Plan or any other stock option plan now or subsequently adopted by the Company, and the higher of (1) the closing price of the Common Stock as reported on the Termination Date on the New York Stock Exchange, or if the New York Stock Exchange is closed on that date, the last preceding date on which the New York Stock Exchange was open and on which shares of Common Stock were traded, or (2) the highest price per share paid in connection with the Change in Control.

          (m)          "Retirement" means termination of employment by either the Executive or the Company on or after the Executive's normal retirement date under the terms of retirement plans of the Company, but not earlier than the age of 65.

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          (n)          "Termination Period" means the period of time beginning with a Change in Control and ending on the earliest to occur of Executive's death and ___________ years following such Change in Control.

          2.          Term of Agreement.          This Agreement shall commence on the Effective Date and shall continue in effect through the third anniversary of the Effective Date. However, on the first anniversary of the Effective Date, and on each such anniversary thereafter, the term of this Agreement will be extended automatically for one (1) year (to a total of three (3) years) unless, not later than six (6) months prior to such anniversary date, the Company gives Executive written notice that it has elected not to extend this Agreement; provided that (a) no such action shall be taken by the Company during any period of time when the Board has knowledge that any person has taken steps reasonably calculated to effect a Change in Control until, in the opinion of the Board, such person has abandoned or terminated its efforts to effect a Change in Control, and (b) this Agreement shall continue in effect for at least _____________ months following the occurrence of a Change in Control. Notwithstanding anything in this Section 2 to the contrary, this Agreement shall terminate upon termination of Executive's employment with the Company prior to a Change in Control (except as otherwise provided hereunder).

          3.          Obligations of Executive.          Executive agrees that in the event any person or group attempts a Change in Control, he/she shall not voluntarily leave the employ of the Company (other than as a result of Disability or upon Retirement) without Good Reason until the earlier of (a) the termination of such attempted Change in Control or (b) the occurrence of a Change in Control. For purposes of this Section 3, Good Reason shall be determined as if a Change in Control had occurred when such attempted Change in Control became known to the Board. Termination of employment by Executive without Good Reason, however, shall not entitle Executive to benefits under Section 4 unless he/she is entitled to such benefits under another provision of this Agreement. 

          4.          Severance Benefits.          If the employment of Executive shall terminate during the Termination Period in a manner constituting a "Separation from Service" as that term is defined by Section 409A of the Code, other than by reason of a Nonqualifying Termination, then Executive shall receive the following severance benefits as compensation for services rendered:

          (a)          Lump Sum Cash Payment. On the fifth business day after the Date of Termination (except as provided in Subsection 4(g) hereof), Executive shall receive a lump sum cash payment in an amount equal to the sum of the following:

          (1)          Executive's unpaid base salary from the Company through the Date of Termination at the rate in effect (without taking into account any reduction of base salary constituting Good Reason), just prior to the time a Notice of Termination is given plus any benefit awards (including both the cash and stock components) and bonus payments which pursuant to the terms of any plans have been earned or become payable, to the extent not theretofore paid;

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          In addition, if the Executive's Date of Termination is prior to the date on which the Company will pay an Incentive Bonus under the Annual Bonus Plan for the fiscal year performance period prior to the fiscal year of termination or pay an Incentive Bonus under a Three Year Plan for any completed three year performance period, the Company shall also pay the Executive 100% of his Incentive Bonus for that prior fiscal year performance period as set forth in Section 6.2(a) of the Annual Bonus Plan and 100% of his Incentive Bonus for the completed three year performance period as set forth in Section 6.2(a) of the Three Year Plan, less applicable tax and other withholdings required by law. For purposes of Section 6.2(b) of the Annual Bonus Plan and the Three Year Plan, the Executive shall have retired under Section 6.2(a) of the Annual Bonus Plan and the Three Year Plan;

          (2)          As payment in lieu of a bonus to be paid under the Amended and Restated Executive Short-Term Incentive Plan (Annual Bonus Plan) (an annual bonus plan) or comparable plans for the time Executive was employed by the Company in the year of termination, an amount equal to the number of days Executive was employed by the Company prior to the Date of Termination in the year of termination divided by the number of days in the year multiplied by 100% of the greater of either (a) the bonus awarded to Executive under the Executive Short-Term Incentive Plan for the immediately preceding year, or (b) the average bonus paid to Executive over the preceding two-year period under the Executive Short-Term Incentive Plan;

          (3)          As payment in lieu of bonuses that would have been paid under each Executive Long-Term Incentive Plan (3-Year Bonus Plan) ("Three Year Plan") or other comparable plan(s) in which the Executive was eligible to participate on the Date of Termination, the Executive shall receive an amount based on the goals under each of the Three Year Plans. The earnings per share for each Three Year Plan will be calculated in the following manner:

          (a)          for any year prior to the year of termination, the earnings per share will equal the actual earnings per share attained in that year;

          (b)          for the year of termination, the earnings per share will equal the projected earnings per share based upon the latest internal company projection for such year;

          (c)          for any year subsequent to the year of termination, the earnings per share will equal the earnings per share required to attain the maximum goal under the Three Year Plan for that year.

          To the extent that all or a portion of the goals under a Three Year Plan are based on targets other than earnings per share that are determined by reference to discreet annual goals, the manner of calculation shall be consistent with the

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manner of calculating earnings per share. To the extent that all or a portion of the goals under a Three Year Plan are based on targets other than earnings per share that are not determined by reference to discreet annual goals, the calculation shall be made assuming attainment of the maximum goal under the Three Year Plan for that period with respect to that element of performance. The payment made for each Three Year Plan will equal the bonus the Executive would have received under the Three Year Plan using the determinations above, multiplied by the number of days the Executive participated in the Three Year Plan prior to the Date of Termination, divided by the total number of days in the Three Year Plan. To the extent that all or a portion of any payment for a Three Year Plan is to be paid in stock (whether restricted or unrestricted shares), the cash payment under this Agreement relating to the stock shall be calculated using the closing price of Wolverine common stock on the New York Stock Exchange (or any successor exchange that is the primary stock exchange for trading of Wolverine common stock) (the "Exchange") on the date of termination of employment or, if the Exchange is closed that date, the last preceding date on which the Exchange was open for trading and on which shares of Wolverine common stock were traded;

          (4)          _______________ times the sum of the following: (a) Executive's highest annual rate of base salary from the Company in effect during the 12-month period prior to the Date of Termination, plus (b) the greater of the average amount earned by Executive during the previous two (2) years or for the previous year under the Amended and Restated Executive Short Term Incentive Plan (Annual Bonus Plan) (or other annual bonus plans);

          (5)          100% of the Positive Spread for any options held by Executive, whether vested or not vested, which are not incentive stock options as defined under Section 422 of the Code, with payment under this subsection conditioned upon surrender by Executive of such options; and

          (6)          100% of the Positive Spread for any options held by Executive, whether vested or not vested, which are incentive stock options as defined under Section 422 of the Code, with payment under this subsection conditioned upon surrender by Executive of such options.

          (b)          Loans.          Any loans that the Executive had outstanding under the loan program of the Company shall remain payable according to the terms of such program.

          (c)          Benefits.          Excepting any retirement plans covered by Subsection 4(d) below, the Company shall maintain in full force and effect for the benefit of Executive all employee benefit plans, programs and arrangements that the Executive was entitled to participate in immediately prior to the Date of Termination for the longer of six (6) months after the Date of Termination or the date upon which the Executive receives comparable benefits from a new employer. The Company, however, need not maintain such benefit plans, programs or arrangements after one (1) year following the Date of

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Termination. If the Executive's participation in any such plan or program is barred, the Company shall arrange to provide comparable benefits substantially similar to those which the Executive received under such plans and programs.

          (d)          Retirement Benefits.          In addition to the benefits the Executive is entitled to receive under any retirement plans in which the Executive participates on the Date of Termination, on the fifth business day after the Date of Termination the Company shall pay the Executive a cash payment of an amount equal to the actuarial equivalent of any additional benefit the Executive would have been entitled to receive under the terms of the plan or program without regard to any vesting or minimum service requirements under the plan had the Executive received three (3) additional years of service following the Date of Termination, subject to any maximum years of service limitations under any retirement plan. The earnings for those three (3) additional years of services shall equal the Executive's annualized earnings at the Date of Termination (with earnings calculated the same as "Earnings" are defined in the Company's Supplemental Executive Retirement Plan ("SERP")), using the then-current annualized rate of base salary (determined by multiplying Executive's then-current bi-weekly gross salary by twenty-six) and any annual bonus (including all annual bonus amounts pursuant to any Company bonus plan) paid in the year of the Date of Termination (or if the Date of Termination occurs prior to payment of an annual bonus in that year, the annual bonus paid in the preceding year) and without taking into account any reduction of base salary constituting Good Reason. For purposes of this Subsection, "retirement plans" shall be deemed to include, without limitation, the Company's Pension Plan and the Company's SERP. For purposes of the SERP, the additional benefit under this Subsection shall be calculated on the basis of the change in control benefit under the SERP.

          (e)          Adjustments.          If Executive is entitled to receive a Payment equal to or between one hundred percent (100%) and one hundred fifteen percent (115%) of the amount that would trigger application of the Excise Tax (as hereafter defined), meaning Executive will receive no Gross-Up Payment with respect to the Payment in accordance with Section 5, the Company shall determine whether the Executive would receive a greater after-tax net amount if the Payment is reduced by an amount sufficient to make the Excise Tax inapplicable to the Payment rather than paying the applicable Excise Tax. If the Company determines that the Executive will receive a greater after-tax net amount by reducing the Payment, such determination shall be final, and the Company shall reduce the lump sum cash portion of the Payment under Section 4(a) by an amount sufficient to make the Excise Tax inapplicable to the Payment otherwise due to Executive. The Company may retain the Accounting Firm (as hereafter defined) to assist with any calculations required under this Subsection (e) and Executive agrees to furnish such tax and financial information as may reasonably be required for calculations under this Subsection (e). 

          (f)          Out-Placement Services.          For the period beginning with the Date of Termination and ending on the last day of the second calendar year following the calendar year in which the Date of Termination occurred, the Company shall provide the

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Executive with executive out-placement services by entering into a contract with a company chosen by the Executive specializing in such services.

          (g)          Delay in Payment to a Specified Employee. Notwithstanding any provision of this Agreement to the contrary, if, at the time of Executive's Date of Termination, he is a "specified employee" as defined in Section 409A of the Code, and one or more of the payments or benefits received or to be received by Executive pursuant to this Agreement would constitute deferred compensation subject to Section 409A, no such payment or benefit will be provided until the earlier of (A) the date which is six (6) months after Executive's "separation from service" for any reason, other than due to death or "disability" (as such terms are used in Section 409A(a)(2) of the Code); or (B) the date of his death. The provisions of this Section shall only apply to the extent required to avoid Executive's incurrence of any penalty tax or interest under Section 409A of the Code or any regulations or Treasury guidance promulgated thereunder.

          (h)          Acceleration of Payments. Payments may not begin before the dates specified in this Agreement except, upon failure of the Agreement to meet the requirements of Code Section 409A, in an amount required to pay all taxes attributable to an amount to be included in income as the result of the failure.

          5.          Certain Additional Payments by the Company.

          (a)          Anything in this Agreement to the contrary notwithstanding, if any payment or distribution by the Company to or for the benefit of Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this Section 5 (a "Payment")) that exceeds one hundred fifteen percent (115%) of the amount that would trigger application of the excise tax imposed by Section 4999 of the Code, or any successor Code provision (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the "Excise Tax"), or any interest or penalties are incurred by Executive with respect to Excise Tax on such amount, then Executive shall be entitled to receive an additional payment (a "Gross-Up Payment") in an amount such that after payment by Executive of all taxes (including any interest or penalties imposed with respect to such taxes) including, without limitation, any income and employment taxes (and any interest and penalties imposed with respect thereto) and Excise Tax, imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. The Company shall not be obligated to make any Gross-Up Payment to Executive with respect to any Payment equal to or less than one hundred fifteen percent (115%) of the amount that would trigger application of the Excise Tax.

          (b)          Subject to the provisions of Section 5(c), all determinations required to be made under this Section 5, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by the public accounting firm that is retained by the

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Company as of the date immediately prior to the Change in Control (the "Accounting Firm") which shall provide detailed supporting calculations both to the Company and Executive within fifteen (15) business days of the receipt of notice from Executive that there has been a Payment, or such earlier time as is requested by the Company or Executive (collectively, the "Determination"). In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity, or group affecting the Change in Control, Executive shall appoint another nationally recognized public accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined pursuant to this Section 5, shall be paid by the Company to Executive within five (5) days of the receipt of the Determination, but in no event later than the end of the Executive's taxable year next following the Executive's taxable year in which the Excise Tax is paid to the taxing authority. If the Accounting Firm determines that no Excise Taxes are payable by Executive, it shall furnish Executive with a written opinion that failure to report the Excise Tax on Executive's applicable federal income tax return would not result in the imposition of a negligence or similar penalty. If the Accounting Firm determines that Excise Taxes are payable and that the associated Payment does not exceed one hundred fifteen percent (115%) of the amount that would trigger application of the Excise Tax, the Accounting Firm shall notify Executive that Executive is responsible for payment of the Excise Tax. The Determination by the Accounting Firm shall be binding upon the Company and Executive; however, as a result of the uncertainty in the application of Section 4999 of the Code at the time of the Determination, it is possible that Gross-Up Payments which will not have been made by the Company should have been made ("Underpayment"), consistent with the calculations required to be made hereunder. In the event that the Company exhausts its remedies pursuant to Section 5(c) and Executive thereafter is required to make payment of any Excise Tax that qualifies for a Gross-Up Payment in accordance with this Section 5, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of Executive.

          (c)          Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of a Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten (10) business days after Executive is informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. Executive shall not pay such claim prior to the expiration of the 30-day period following the date on which Executive gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies Executive in writing prior to the expiration of such period that it desires to contest such claim, Executive shall:

          (1)          give the Company any information reasonably requested by the Company relating to such claim,

13

          (2)          take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company,

          (3)          cooperate with the Company in good faith in order effectively to contest such claim, and

          (4)          permit the Company to participate in any proceeding relating to such claim;

provided, however, that the Company shall reimburse Executive immediately for all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Executive harmless, on an after-tax basis, for any Excise Tax or income or employment tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 5(c), the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all administrative appeals, proceedings, hearings, and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided further, that if the Company directs Executive to pay such claim and sue for a refund, the Company shall reimburse Executive for the amount of such payment and any Excise Tax or income or employment tax (including interest or penalties with respect thereto) imposed with respect to such reimbursement such that Executive is made whole on an after-tax basis; and provided further, that any extension of the statute of limitations relating to payment of taxes for the taxable year of Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. Any reimbursement under this Section must be made within five (5) days after the date on which the expense being reimbursed was incurred. 

          (d)          If, after the receipt by Executive of a reimbursement by the Company pursuant to Section 5, Executive becomes entitled to receive, and receives, any refund with respect to such claim, Executive shall (subject to the Company's complying with the requirements of Section 5) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by Executive of a reimbursement by the Company pursuant to Section 5, a determination is made that Executive shall not be entitled to any refund with respect to

14

such claim and the Company does not notify Executive in writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days after such determination, then such reimbursement shall not be subject to repayment and the amount of such reimbursement shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid.

          6.          Withholding Taxes.          The Company may withhold from all payments due to Executive (or his/her beneficiary or estate) hereunder all taxes which, by applicable federal, state, local, or other law, the Company is required to withhold therefrom.

          7.          Reimbursement of Expenses.          If any contest or dispute shall arise under or related to this Agreement involving termination of Executive's employment with the Company or involving the failure or refusal of the Company to perform fully in accordance with the terms hereof; the Company shall reimburse Executive, on a current basis, for all legal fees and expenses, if any, incurred by Executive in connection with such contest or dispute regardless of the result thereof. Any reimbursement under this Section must be made within five (5) days after the date on which the expense being reimbursed was incurred. 

          8.          Scope of Agreement.          Nothing in this Agreement shall be deemed to entitle Executive to continued employment with the Company.

          9.          Successors; Binding Agreement.

          (a)          This Agreement shall not be terminated by any merger or consolidation of the Company whereby the Company is or is not the surviving or resulting corporation or as a result of any transfer of all or substantially all of the assets of the Company. In the event of any such merger, consolidation, or transfer of assets, the provisions of this Agreement shall be binding upon the surviving or resulting corporation or the person or entity to which such assets are transferred.

          (b)          The Company agrees that concurrently with any merger, consolidation or transfer of assets referred to in this Section 9, it will cause any successor or transferee unconditionally to assume, by written instrument delivered to Executive (or his/her beneficiary or estate), all of the obligations of the Company hereunder. Failure of the Company to obtain such assumption prior to the effectiveness of any such merger, consolidation, or transfer of assets shall be a breach of this Agreement and shall constitute Good Reason hereunder and shall entitle Executive to compensation and other benefits from the Company in the same amount and on the same terms as Executive would be entitled hereunder if Executive's employment were terminated following a Change in Control other than by reason of a Nonqualifying Termination. For purposes of implementing the foregoing, the date on which any such merger, consolidation, or transfer becomes effective shall be deemed the date Good Reason occurs, and shall be the Date of Termination if requested by Executive.

15

          (c)          This Agreement shall inure to the benefit of and be enforceable by Executive's personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If Executive shall die while any amounts would be payable to Executive hereunder had Executive continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to such person or persons appointed in writing by Executive to receive such amounts or, if no person is so appointed, to Executive's estate.

          10.          Notice.          For purposes of this Agreement, all notices and other communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given when delivered or received by facsimile transmission or five (5) days after deposit in the United States mail, certified and return receipt requested, postage prepaid, addressed as follows:

          If to the Executive:

                                                  

                                                  

                                                  

                                                  

          If to the Company:

          General Counsel

          Wolverine World Wide, Inc.

          9341 Courtland Drive, N.E.

          Rockford, Michigan 49351

or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

          11.          Full Settlement; Resolution of Disputes.

          (a)          The Company's obligation to make any payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against Executive or others. In no event shall Executive be obligated to seek other employment or take other action by way of mitigation of the amounts payable to Executive under any of the provisions of this Agreement and, such amounts shall not be reduced whether or not Executive obtains other employment.

          (b)          If there shall be any dispute between the Company and Executive in the event of any termination of Executive's employment then, until there is a final, nonappealable, determination pursuant to arbitration declaring that such termination was for Cause, that the determination by Executive of the existence of Good Reason was not

16

made in good faith, or that the Company is not otherwise obligated to pay any amount or provide any benefit to Executive and his/her dependents or other beneficiaries, as the case may be, under Section 4, the Company shall pay all amounts, and provide all benefits, to Executive and his/her dependents or other beneficiaries, as the case may be, that the Company would be required to pay or provide pursuant to Section 4 as though such termination were by the Company without Cause or by Executive with Good Reason; provided, however, that the Company shall not be required to pay any disputed amounts pursuant to this Section 11 except upon receipt of an undertaking by or on behalf of Executive to repay all such amounts to which Executive is ultimately determined by the arbitrator not to be entitled.

          12.          Governing Law; Validity.          The interpretation, construction and performance of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware without regard to the principle of conflicts of laws. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which other provisions shall remain in full force and effect.

          13.          Arbitration.          Any dispute or controversy under this Agreement shall be settled exclusively by arbitration in Rockford, Michigan, in accordance with the rules of the American Arbitration Association then in effect; provided, however, that Executive shall be entitled to seek specific performance of his/her right to be paid pursuant to Section 11(b) during a dispute. Judgment may be entered on the arbitration award in any court having jurisdiction. The Company shall reimburse Executive immediately for all costs and expenses arising in connection with any arbitration proceeding pursuant to this Section 13. Any reimbursement under this Section must be made within five (5) days after the date on which the expense being reimbursed was incurred. 

          14.          Counterparts.          This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument.

          15.          Miscellaneous.          No provision of this Agreement may be modified or waived unless such modification is agreed to in writing and signed by Executive and by a duly authorized officer of the Company, or such waiver is signed by the waiving party. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. Failure by Executive or the Company to insist upon strict compliance with any provision of this Agreement or to assert any right Executive or the Company may have hereunder, including, without limitation, the right of Executive to terminate employment for Good Reason, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. The rights of, and benefits payable to, Executive, his/her estate, or his/her beneficiaries pursuant to this Agreement are in addition to any rights of, or benefits payable to, Executive, his/her estate, or his/her beneficiaries under any other employee

17

benefit plan or compensation program of the Company, except that no benefits pursuant to any other employee plan or compensation program that become payable or are paid in accordance with this Agreement shall be duplicated by operation of this Agreement. No agreements or representations, oral or otherwise, express or implied, with regard to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement. This Agreement supersedes and replaces any prior agreement between the parties (including, without limitation, any previous Executive Severance Agreement) with respect to the matters addressed herein.

          16.          Compliance with Section 409A. If any provision of this Agreement would cause Executive to incur any penalty tax or interest under Section 409A of the Code or any regulations or Treasury guidance promulgated thereunder, the Company may reform such provision to maintain to the maximum extent practicable the original intent of the applicable provision without violating the provisions of Section 409A of the Code.

          IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by a duly authorized officer of the Company. Executive has executed this Agreement as of the day and year written below.

	
 
	
WOLVERINE WORLD WIDE, INC.

	
 
	
 

	
 
	
By:
	
 

	
 
	
 
	
 

	
 
	
Its:
	
 

	
 
	
 
	
"Company

AGREED TO THIS _____ DAY OF _____________, 2008.

	
/s/
	
 

	
 

"Executive"

18EX-4.1

EXHIBIT 4.1

      

HUBBELL INCORPORATED

and

MELLON INVESTOR SERVICES LLC

as Rights Agent

Amended and Restated Rights Agreement

Dated as of December 17, 2008

      

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Section 1. Certain Definitions
	 	 	2	 
	 
	 	 	 	 
	Section 2. Appointment of Rights Agent
	 	 	7	 
	 
	 	 	 	 
	Section 3. Issue of Right Certificates
	 	 	8	 
	 
	 	 	 	 
	Section 4. Form of Right Certificates
	 	 	10	 
	 
	 	 	 	 
	Section 5. Countersignature and Registration
	 	 	10	 
	 
	 	 	 	 
	Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right
Certificates
	 	 	11	 
	 
	 	 	 	 
	Section 7. Exercise of Rights, Purchase Price; Expiration Date of Rights
	 	 	11	 
	 
	 	 	 	 
	Section 8. Cancellation and Destruction of Right Certificates
	 	 	13	 
	 
	 	 	 	 
	Section 9. Availability of Shares of Preferred Stock
	 	 	13	 
	 
	 	 	 	 
	Section 10. Preferred Stock Record Date
	 	 	14	 
	 
	 	 	 	 
	Section 11. Adjustment of Purchase Price, Number and Kind of Shares and Number of Rights
	 	 	15	 
	 
	 	 	 	 
	Section 12. Certificate of Adjusted Purchase Price or Number of Shares
	 	 	23	 
	 
	 	 	 	 
	Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power
	 	 	23	 
	 
	 	 	 	 
	Section 14. Fractional Rights and Fractional Shares
	 	 	26	 
	 
	 	 	 	 
	Section 15. Rights of Action
	 	 	28	 
	 
	 	 	 	 
	Section 16. Agreement of Right Holders
	 	 	28	 
	 
	 	 	 	 
	Section 17. Right Certificate Holder Not Deemed a Stockholder
	 	 	29	 
	 
	 	 	 	 
	Section 18. Concerning the Rights Agent
	 	 	29	 
	 
	 	 	 	 
	Section 19. Merger or Consolidation or Change of Name of Rights Agent
	 	 	30	 
	 
	 	 	 	 
	Section 20. Duties of Rights Agent
	 	 	30	 
	 
	 	 	 	 
	Section 21. Change of Rights Agent
	 	 	33	 
	 
	 	 	 	 
	Section 22. Issuance of New Right Certificates
	 	 	34	 
	 
	 	 	 	 
	Section 23. Redemption
	 	 	34	 
	 
	 	 	 	 
	Section 24. Exchange
	 	 	35	 

i

 

	 	 	 	 	 
	 	 	Page	 
	Section 25. Notice of Certain Events
	 	 	36	 
	 
	 	 	 	 
	Section 26. Notices
	 	 	36	 
	 
	 	 	 	 
	Section 27. Supplements and Amendments
	 	 	37	 
	 
	 	 	 	 
	Section 28. Successors
	 	 	38	 
	 
	 	 	 	 
	Section 29. Benefits of this Agreement
	 	 	38	 
	 
	 	 	 	 
	Section 30. Determinations and Actions by the Board of Directors
	 	 	38	 
	 
	 	 	 	 
	Section 31. Severability
	 	 	38	 
	 
	 	 	 	 
	Section 32. Governing Law
	 	 	39	 
	 
	 	 	 	 
	Section 33. Counterparts
	 	 	39	 
	 
	 	 	 	 
	Section 34. Descriptive Headings
	 	 	39	 

EXHIBITS

	 	 	 
	Exhibit A

	 	Form of Certificate of Amendment Series A Junior Participating Preferred Stock
	 
	 	 
	Exhibit B

	 	Form of Certificate of Amendment Series B Junior Participating Preferred Stock
	 
	 	 
	Exhibit C

	 	Form of Class A Right Certificate
	 
	 	 
	Exhibit D

	 	Form of Class B Right Certificate
	 
	 	 
	Exhibit E

	 	Summary of Rights

ii

 

AMENDED AND RESTATED RIGHTS AGREEMENT

     This Amended and Restated Rights Agreement, dated as of December 17, 2008 (“Agreement”),
amending and restating the Rights Agreement, dated as of December 9, 1998, as amended (the
“Original Agreement”), between Hubbell Incorporated, a Connecticut corporation (the “Company”), and
Mellon Investor Services LLC (successor to ChaseMellon Shareholder Services, L.L.C.), a New Jersey
limited liability company, as Rights Agent (the “Rights Agent”).

RECITALS

     WHEREAS, the Board of Directors of the Company (the “Board”) on December 9, 1998 adopted the
Original Agreement and (i)(A) authorized the issuance and declared a dividend of one preferred
share purchase right (a “Class A Right”) for each share of the Class A common stock, $0.01 par
value per share (“Class A Common Stock”), of the Company outstanding as of the Close of Business
(as hereinafter defined) on December 21, 1998 (the “Record Date”), each Class A Right representing
the right to purchase one one-thousandth (subject to adjustment) of a share of Series A Preferred
Stock (as hereinafter defined), upon the terms and subject to the conditions hereinafter set forth
and (B) further authorized and directed the issuance of one Class A Right (subject to adjustment as
provided herein) with respect to each share of Class A Common Stock that shall become outstanding
between the Record Date and the earlier of the Distribution Date and the Expiration Date (as such
terms are hereinafter defined); provided, however, that Class A Rights may be issued with respect
to shares of Class A Common Stock that shall become outstanding after the Distribution Date and
prior to the Expiration Date in accordance with Section 22 and (ii)(A) authorized the issuance and
declared a dividend of one preferred share purchase right (a “Class B Right”) for each share of the
Class B common stock, $0.01 par value per share (“Class B Common Stock”), of the Company
outstanding as of the Close of Business on the Record Date, each Class B Right representing the
right to purchase one one-thousandth (subject to adjustment) of a share of Series B Preferred Stock
(as hereinafter defined), upon the terms and subject to the conditions hereinafter set forth and
(B) further authorized and directed the issuance of one Class B Right (subject to adjustment as
provided herein) with respect to each share of Class B Common Stock that shall become outstanding
between the Record Date and the earlier of the Distribution Date and the Expiration Date; provided,
however, the Class B Rights may be issued with respect to shares of Class B Common Stock that shall
become outstanding after the Distribution Date and prior to the Expiration Date in accordance with
Section 22;

     WHEREAS, pursuant to Section 27 of the Original Agreement, the Company and Rights Agent may
from time to time supplement or amend the Original Agreement in accordance with the provisions of
Section 27 thereof;

     WHEREAS, pursuant to Section 7 of the Original Agreement, the Final Expiration Date for the
Rights under the Original Agreement is the Close of Business on December 31, 2008; and

     WHEREAS, the Board has determined that extension of the Rights pursuant to an amendment and
restatement of the Original Agreement as set forth below is desirable and in the best interests of
the Company and its shareholders.

 

 

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

     Section 1. Certain Definitions. For purposes of this Agreement, the following terms have the
meaning indicated:

     (a) “Acquiring Person” shall mean any Person who or which shall be the Beneficial Owner of 20%
or more of the shares of Class A Common Stock then outstanding, but shall not include an Exempt
Person.

     Notwithstanding the foregoing:

          (i) if the Board determines in good faith that a Person who would otherwise be an “Acquiring
Person,” as defined pursuant to the foregoing provisions of this Section 1(a), has become such
inadvertently (including, without limitation, because (A) such Person was unaware that it
Beneficially Owned a percentage of Class A Common Stock that would otherwise cause such Person to
be an “Acquiring Person” or (B) such Person was aware of the extent of its Beneficial Ownership of
Class A Common Stock but had no actual knowledge of the consequences of such Beneficial Ownership
under this Agreement) and without any intention of changing or influencing control of the Company,
and such Person divests as promptly as practicable (as determined, in good faith, by the Board) a
sufficient number of shares of Class A Common Stock so that such Person would no longer be an
Acquiring Person, as defined pursuant to the foregoing provisions of this Section 1(a), then such
Person shall not be deemed to be or to have become an “Acquiring Person” at any time for any
purposes of this Agreement;

          (ii) [Intentionally Omitted];

          (iii) no Person shall become an “Acquiring Person” as the result of an acquisition of shares
of Class A Common Stock by the Company which, by reducing the number of shares outstanding,
increases the proportionate number of shares of Class A Common Stock Beneficially Owned by such
Person to 20% or more of the shares of Class A Common Stock then outstanding; provided, however,
that if a Person shall become the Beneficial Owner of 20% or more of the shares of Class A Common
Stock then outstanding by reason of such share acquisitions by the Company and shall thereafter
become the Beneficial Owner of one or more additional share(s) of Class A Common Stock (other than
pursuant to a dividend or distribution paid or made by the Company on the outstanding Class A
Common Stock or pursuant to a split or subdivision of the outstanding Class A Common Stock), then
such Person shall be deemed to be an “Acquiring Person” unless upon becoming the Beneficial Owner
of such additional share(s) of Class A Common Stock such Person does not Beneficially Own 20% or
more of the shares of Class A Common Stock then outstanding; and

          (iv) no Person shall become an Acquiring Person as the result of an acquisition of shares of
Class A Common Stock by such Person pursuant to a Permitted Tender Offer.

     For all purposes of this Agreement, any calculation of the number of shares of Class A Common
Stock outstanding at any particular time, including for purposes of determining the

2

 

particular percentage of such outstanding shares of Class A Common Stock of which any Person is the
Beneficial Owner, shall include the number of shares of Class A Common Stock not outstanding at the
time of such calculation that such Person has the Right to Acquire (i) within sixty (60) days
thereafter, or (ii) at any time thereafter if such Person acquired such Right to Acquire with the
purpose or effect of changing or influencing the control of the Company or as a participant in any
transaction having such purpose or effect. The number of shares of Class A Common Stock not
outstanding which are subject to such Right to Acquire shall be deemed to be outstanding for the
purpose of computing the percentage of outstanding number of shares of Class A Common Stock owned
by such Person but shall not be deemed to be outstanding for the purpose of computing the
percentage of outstanding Class A Common Stock by any other Person.

     (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 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” or have “Beneficial Ownership” of any securities:

          (i) which such Person or any of such Person’s Affiliates or Associates is deemed to
beneficially own, directly or indirectly, within the meaning of Rule l3d-3 of the General Rules and
Regulations under the Exchange Act as in effect on the date of this Agreement;

          (ii) which such Person or any of such Person’s Affiliates or Associates has (A) the Right to
Acquire; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to
Beneficially Own, (x) 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, (y) securities which such Person has a Right to
Acquire upon the exercise of Rights at any time prior to the time that any Person becomes an
Acquiring Person, or (z) securities issuable upon the exercise of Rights from and after the time
that any Person becomes an Acquiring Person if such Rights were acquired by such Person or any of
such Person’s Affiliates or Associates prior to the Distribution Date or pursuant to Section 3(a)
or Section 22 (“Original Rights”) or pursuant to Section 11(i) or Section 11(n) with respect to an
adjustment to Original Rights; 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 by reason of such agreement, arrangement or understanding if the
agreement, arrangement or understanding to vote such security (x) arises solely from a revocable
proxy or consent given to such Person in response to a public proxy or consent solicitation made
pursuant to, and in accordance with, the applicable rules and regulations promulgated under the
Exchange Act and (y) 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 and with
respect to 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)

3

 

for the purpose of acquiring, holding, voting (except to the extent contemplated by the proviso to
Section 1(c)(ii)(B)) or disposing of such securities of the Company; provided, however, that no
Person who is an officer, director or employee of an Exempt Person shall be deemed, solely by
reason of such Person’s status or authority as such, to be the “Beneficial Owner” of, to have
“Beneficial Ownership” of or to “Beneficially Own” any securities that are “Beneficially Owned” (as
defined in this Section l(c)), including, without limitation, in a fiduciary capacity, by an Exempt
Person or by any other such officer, director or employee of an Exempt Person; provided, further,
that no individual serving as trustee of the Roche Trust or the Hubbell Trust shall be deemed to
Beneficially Own in his individual capacity any shares of Class A Common Stock owned by the Roche
Trust or the Hubbell Trust, whether or not the Roche Trust and/or the Hubbell Trust continues to
have Exempt Person status.

     (d) “Business Day” shall mean any day other than a Saturday, a Sunday or a day on which
banking institutions in the States of Connecticut, New York or New Jersey or the city in which the
office of the Rights Agent is located are authorized or obligated by law or executive order to
close.

     (e) “Class A Common Stock” shall have the meaning set forth in the Recitals hereto.

     (f) “Class B Common Stock” shall have the meaning set forth in the Recitals hereto.

     (g) “Class A Right” shall have the meaning set forth in the Recitals hereto.

     (h) “Class B Right” shall have the meaning set forth in the Recitals hereto.

     (i) “Class A Right Certificate” shall have the meaning set forth in Section 3(a) hereof.

     (j) “Class B Right Certificate” shall have the meaning set forth in Section 3(a) hereof.

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

     (l) “Common Stock” when used with reference to the Company shall mean collectively and
severally, as the context requires, the Class A Common Stock and/or the Class B Common Stock.
“Common Stock” when used with reference to any Person other than the Company shall mean the common
stock (or, in the case of an unincorporated entity, the equivalent equity interest) with the
greatest voting power, or the equity securities or other equity interest having power to control or
direct the management, of such other Person or, if such other Person is a Subsidiary of another
Person, the Person or Persons which ultimately control such first-mentioned Person, and which has
issued and outstanding such capital stock, equity securities or equity interest.

     (m) “Common Stock Equivalents” shall have the meaning set forth in Section 11(a)(iii) hereof.

4

 

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

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

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

     (q) “Exempt Person” shall mean (i) the Company or any Subsidiary of the Company, in each case
including, without limitation, the officers and board of directors thereof acting in their
fiduciary capacity, (ii) any employee benefit plan of the Company or of any Subsidiary of the
Company, or any entity or trustee holding Common Stock for or pursuant to the terms of any such
plan or for the purpose of funding any such plan or funding other employee benefits for employees
of the Company or of any Subsidiary of the Company, (iii) the Roche Trust so long as it does not
purchase shares of Class A Common Stock (x) from any Person other than the Hubbell Trust in an
amount not in excess of the number of shares of Class A Common Stock owned by the Hubbell Trust as
of the date of this Agreement or (y) pursuant to a Permitted Tender Offer or (iv) the Hubbell Trust
so long as it does not purchase shares of Class A Common Stock (x) from any Person other than the
Roche Trust in an amount not in excess of the number of shares of Class A Common Stock owned by the
Roche Trust as of the date of this Agreement or (y) pursuant to a Permitted Tender Offer.

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

     (s) “Expiration Date” shall have the meaning set forth in Section 7 hereof.

     (t) “Flip-In Event” shall have the meaning set forth in Section 11(a)(ii) hereof.

     (u) “Final Expiration Date” shall have the meaning set forth in Section 7 hereof.

     (v) “Hubbell Trust” shall mean the trust established under the Trust Indenture dated August
23, 1953 made by Harvey Hubbell.

     (w) “NASDAQ” shall mean The NASDAQ Stock Market.

     (x) “New York Stock Exchange” shall mean the New York Stock Exchange, Inc.

     (y) “Permitted Tender Offer” shall mean a fully-financed all cash tender offer for all
outstanding shares of both Class A Common Stock and Class B Common Stock at the same price per
share for each class of Common Stock and otherwise on the same terms and conditions, which (i) is
made pursuant to a Schedule 14D-1 filed with the Securities and Exchange Commission, (ii) by its
terms stays open for a minimum of 60 Business Days and (iii) (A) is accepted (in the case of clause
(iv) of the definition of “Acquiring Person” and clauses (iii)(y) and (iv)(y) of the definition of
“Exempt Person”) or (B) requires as a non-waivable condition that such offer be accepted (for
purposes of Section 3(a)) by the holders of at least two-thirds of the then outstanding Common
Stock of each class owned by Persons other than the Person making the tender offer (or its
Affiliates or Associates). A Permitted Tender Offer shall be deemed to be “fully-financed” if, on
or prior to the date such offer is commenced within the

5

 

meaning of Rule 14d-2(a) of the General Rules and Regulations under the Exchange Act, such Person
has, and has provided the Company, firm written commitments from responsible financial
institutions, which have been accepted by such Person (or one of its Affiliates), to provide,
subject only to customary terms and conditions, funds for such offer which, when added to the
amount of cash and cash equivalents which such Person then has
available and has irrevocably
committed in writing to the Company to utilize for purposes of such offer, will be sufficient to
pay for all the then outstanding Common Stock pursuant to the offer and all related expenses,
together with copies of all written materials prepared by such Person for such financial
institutions in connection with obtaining such financing commitments.

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

     (aa) “Preferred Stock” shall mean collectively and severally, as the context requires, the
Series A Preferred Stock and/or the Series B Preferred Stock.

     (bb) “Principal Party” shall have the meaning set forth in Section 13(b) hereof.

     (cc) “Record Date” shall have the meaning set forth in the Recitals hereto.

     (dd) “Redemption Date” shall have the meaning set forth in Section 7(a) hereof.

     (ee) “Redemption Price” shall have the meaning set forth in Section 23 hereof.

     (ff) “Right Certificate” shall mean collectively or severally, as the context shall require,
the Class A Right Certificate and/or the Class B Right Certificate.

     (gg) “Right to Acquire” shall mean a legal, equitable or contractual right to acquire (whether
directly or indirectly and whether exercisable immediately, or only after the passage of time,
compliance with regulatory requirements, fulfillment of a condition or otherwise), pursuant to any
agreement, arrangement or understanding, whether or not in writing (excluding customary agreements
entered into in good faith with and between an underwriter and selling group members in connection
with a firm commitment underwriting registered under the Securities Act), or upon the exercise of
any option, warrant or right, through conversion of a security, pursuant to the power to revoke a
trust, discretionary account or similar arrangement, pursuant to the power to terminate a
repurchase or similar so-called “stock borrowing” agreement or arrangement, or pursuant to the
automatic termination of a trust, discretionary account or similar arrangement.

     (hh) “Rights” shall mean collectively or severally, as the context shall require, the Class A
Rights and/or the Class B Rights.

     (ii) “Roche Trust” shall mean the trust established under a Trust Indenture dated September 2,
1957 made by Louis E. Roche.

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

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

     (ll) “Series A Preferred Stock” shall mean the Series A Junior Participating Preferred Stock,
without par value, of the Company having the rights and preferences set forth in the Form of
Certificate of Amendment attached to this Agreement as Exhibit A.

     (mm) “Series B Preferred Stock” shall mean the Series B Junior Participating Preferred Stock,
without par value, of the Company having the rights and preferences set forth in the Form of
Certificate of Amendment attached to this Agreement as Exhibit B.

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

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

     (pp) “Subsidiary” of any Person shall mean any partnership, joint venture, limited liability
company, firm, corporation, unincorporated association, trust or other entity of which a majority
of the voting power of the voting equity securities or equity interests is owned, of record or
beneficially, directly or indirectly, by such Person.

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

     (rr) “Summary of Rights” shall have the meaning set forth in Section 3(b) hereof.

     (ss) “Trading Day” shall have the meaning set forth in Section 11(d)(i) hereof.

     (tt) “Trusts” shall mean the Roche Trust and the Hubbell Trust, collectively.

     Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as
agent for the Company in accordance with the terms and conditions hereof, and the Rights Agent
hereby accepts such appointment. The Company may from time to time appoint such co-Rights Agents as
it may deem necessary or desirable. The Rights Agent shall have no duty to supervise, and in no
event shall be liable for, the acts or omissions of any such co-Rights Agent. In the event the
Company appoints one or more co-Rights Agents, the respective duties of the Rights Agent and the
co-Rights Agent shall be as the Company shall determine. Contemporaneously with such appointment,
if any, the Company shall notify the Rights Agent thereof.

7

 

     Section 3. Issue of Right Certificates.

     (a) Until the Close of Business on the earlier of (i) the tenth day after the Stock
Acquisition Date and (ii) the tenth Business Day (or such later date as may be determined by action
of the Board prior to such time as any Person becomes an Acquiring Person) after the date of the
commencement by any Person (other than an Exempt Person; provided, however, that for the purpose of
this Section 3(a) the Trusts shall be excluded from the definition of Exempt Person) of, or of the
first public announcement of the intention of such Person (other than an Exempt Person; provided,
however, that for the purpose of this Section 3(a) the Trusts shall be excluded from the definition
of Exempt Person) to commence, a tender or exchange offer (other than a Permitted Tender Offer) the
consummation of which would result in any Person (other than an Exempt Person; provided, however,
that for the purpose of this Section 3(a) the Trusts shall be excluded from the definition of
Exempt Person) becoming the Beneficial Owner of shares of Common Stock aggregating 20% or more of
the Class A Common Stock then outstanding (the earlier of such dates being herein referred to as
the “Distribution Date”); provided, however, that if either of such dates occurs after the date of
this Agreement and on or prior to the Record Date, then the Distribution Date shall be the Record
Date, (x) the Rights will be evidenced (subject to the provisions of Section 3(b) hereof) by the
certificates for Common Stock registered in the names of the holders thereof and not by separate
Right Certificates, and (y) the Rights will be transferable only in connection with the transfer of
Common Stock. As soon as practicable after the Distribution Date, the Company will prepare and
execute, the Rights Agent will countersign and the Company will send or cause to be sent (and the
Rights Agent will, if requested and provided with all necessary information, send) by first-class,
insured, postage-prepaid mail, (A) to each record holder of the Class A Common Stock as of the
Close of Business on the Distribution Date (other than any Acquiring Person or any Associate or
Affiliate of an Acquiring Person), at the address of such holder shown on the records of the
Company, a Class A Right Certificate in substantially the form of Exhibit C hereto (“Class A Right
Certificate”) evidencing one Class A Right (subject to adjustment as provided herein) for each
share of Class A Common Stock so held and (B) to each record holder of the Class B Common Stock as
of the Close of Business on the Distribution Date (other than any Acquiring Person or any Associate
or Affiliate of an Acquiring Person), at the address of such holder shown on the records of the
Company, a Class B Right Certificate in substantially the form of Exhibit D hereto (“Class B Right
Certificate”) evidencing one Class B Right (subject to adjustment as provided herein) for each
share of Class B Common Stock so held. As of the Distribution Date, the Rights will be evidenced
solely by such Right Certificates. The Company shall promptly notify the Rights Agent in writing
upon the occurrence of a Distribution Date. Until such notice is given in accordance with Section
26 hereof, the Rights Agent may presume conclusively for all purposes that a Distribution Date has
not occurred.

     (b) On the Record Date, or as soon as practicable thereafter, the Company will send or cause
to be sent a copy of a Summary of Rights to Purchase Shares of Preferred Stock, in substantially
the form of Exhibit E hereto (the “Summary of Rights”), by first-class, postage-prepaid mail, to
each record holder of Common Stock as of the Close of Business on the Record Date (other than any
Acquiring Person or any Associate or Affiliate of any Acquiring Person), at the address of such
holder shown on the records of the Company. With respect to certificates for Common Stock
outstanding as of the Close of Business on the Record Date, until the Distribution Date (or the
earlier Expiration Date), the Rights will be evidenced by such

8

 

certificates registered in the names of the holders thereof together with a copy of the Summary of
Rights, and the registered holders of the Common Stock shall also be registered holders of the
associated Rights. Until the Distribution Date (or, if earlier, the Expiration Date), the surrender
for transfer of any certificate for Common Stock outstanding at the Close of Business on the Record
Date, with or without a copy of the Summary of Rights, shall also constitute the transfer of the
Rights associated with the Common Stock represented thereby.

     (c) Rights shall be issued in respect of all shares of Common Stock issued or disposed of
(including, without limitation, upon issuance of Common Stock out of authorized but unissued
shares) after the Record Date but prior to the earlier of the Distribution Date and the Expiration
Date, or in certain circumstances provided in Section 22 hereof, after the Distribution Date.
Certificates issued for Common Stock (including, without limitation, upon transfer of outstanding
Common Stock or issuance of Common Stock out of authorized but unissued shares) after the Record
Date but prior to the earlier of the Distribution Date and the Expiration Date, or in certain
circumstances provided in Section 22 hereof, after the Distribution Date shall have impressed,
printed, stamped, written or otherwise affixed onto them substantially the following legend:

This certificate also evidences and entitles the holder hereof to
certain rights as set forth in a Rights Agreement between Hubbell
Incorporated (the “Company”) and ChaseMellon Shareholder Services,
L.L.C., as Rights Agent, dated as of December 9, 1998 and as amended
from time to time (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 the Company. 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. The Company 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, as set forth in the Rights Agreement, Rights owned by
or transferred to any Person who is or becomes an Acquiring Person
(as defined in the Rights Agreement) and certain transferees thereof
will become null and void and will no longer be transferable.

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

9

 

     Notwithstanding this paragraph (c), the omission of a legend shall not affect the
enforceability of any part of this Agreement or the rights of any holder of the Rights.

     Section 4. Form of Right Certificates. The Class A Right Certificates and the Class B Right
Certificates (and the forms of election to purchase shares and of assignment to be printed on the
reverse thereof) shall be substantially in the form set forth in Exhibit C hereto and Exhibit D
hereto, respectively, and may have such marks of identification or designation and such legends,
summaries or endorsements printed thereon as the Company may deem appropriate which do not affect
the rights, duties, obligations, responsibilities or liabilities of the Rights Agent and as are not
inconsistent with the provisions of this Agreement, or as may be required to comply with any
applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation
of any stock exchange or trading system on which the Rights may from time to time be listed or
quoted, or to conform to usage. Subject to the provisions of this Agreement, the Right
Certificates, whenever issued, shall be dated as of the Record Date, and shall show the date of
countersignature by the Rights Agent, and on their face shall entitle the holders thereof to
purchase such number of one one-thousandths of a share of Series A Preferred Stock or Series B
Preferred Stock, as the case may be, as shall be set forth therein at the price per one
one-thousandth of a share of Series A Preferred Stock or Series B Preferred Stock, as the case may
be, set forth therein (the “Purchase Price”), but the number of such one one-thousandths of a share
of Series A Preferred Stock or Series B Preferred Stock, as the case may be, and the Purchase Price
shall be subject to adjustment as provided herein.

     Section 5. Countersignature and Registration.

     (a) The Right Certificates shall be executed on behalf of the Company by its Chairman of the
Board, the President of the Company, or any Executive 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 Secretary of the Company, either manually or by facsimile signature. The Right
Certificates shall be countersigned, either manually or by facsimile signature, by an authorized
signatory of the Rights Agent, but it shall not be necessary for the same signatory to countersign
all of the Right Certificates hereunder. No Right Certificate shall be valid for any purpose
unless so countersigned. In case any officer of the Company who shall have signed any of the Right
Certificates shall cease to be such officer of the Company before countersignature by the Rights
Agent and issuance and delivery by the Company, such Right Certificates, nevertheless, may be
countersigned by the Rights Agent and issued and delivered by the Company with the same force and
effect as though the Person who signed such Right Certificates had not ceased to be such officer of
the Company; and any Right Certificate may be signed on behalf of the Company by any Person who, at
the actual date of the execution of such Right Certificate, shall be a proper officer of the
Company to sign such Right Certificate, although at the date of the execution of this Agreement any
such Person was not such an officer.

     (b) Following the Distribution Date and receipt by the Rights Agent of notice to that effect,
the Rights Agent will keep or cause to be kept, at an office or agency designated for such purpose,
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.

10

 

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

     (a) Subject to the provisions of this Agreement, at any time after the Close of Business on
the Distribution Date and at or prior to the Close of Business on the Expiration Date, any Right
Certificate or Right Certificates (other than Right Certificates representing Rights that have
become void pursuant to Section 11(a)(ii) or that have been exchanged pursuant to Section 24) may
be transferred, split up, combined or exchanged for another Right Certificate or Right
Certificates, entitling the registered holder to purchase a like number of one one-thousandths of a
share of Series A Preferred Stock or Series B Preferred Stock, as the case may be, 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,
together with any required form of assignment and certificate duly completed, the Right Certificate
or Right Certificates to be transferred, split up, combined or exchanged at the office or agency of
the Rights Agent designated for such purpose. Neither the Rights Agent nor the Company shall be
obligated to take any action whatsoever with respect to the transfer of any such surrendered Right
Certificate or Right Certificates until the registered holder shall have completed and signed the
certificate contained in the form of assignment on the reverse side of such Right Certificate or
Right Certificates and shall have provided such additional evidence of the identity of the
Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company or
the Rights Agent shall reasonably request. Thereupon the Rights Agent shall 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 from the holders of Right Certificates 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 such Right Certificates. The Rights Agent shall have
no duty or obligation to take any action under this Agreement unless and until it is satisfied that
all such taxes and/or charges have been paid.

     (b) Subject to the provisions of this Agreement, at any time after the Distribution Date and
prior to the Expiration Date, upon receipt by the Company and the Rights Agent of evidence
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,
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
countersignature and delivery to the registered holder in lieu of the Right Certificate so lost,
stolen, destroyed or mutilated.

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

     (a) Except as otherwise provided herein, the Rights shall become exercisable on the
Distribution Date, and thereafter the registered holder of any Right Certificate may, subject to
Section 11(a)(ii) hereof and except as otherwise provided herein, exercise the Rights evidenced

11

 

thereby in whole or in part upon surrender of the Right Certificate, with the form of election to
purchase on the reverse side thereof duly and properly executed, to the Rights Agent at the office
or agency of the Rights Agent designated for such purpose, together with payment of the aggregate
Purchase Price in cash, or by certified check or cashier’s check payable to the order of the
Company with respect to the total number of one one-thousandths of a share of Preferred Stock (or
other securities, cash or other assets, as the case may be) as to which the Rights are exercised,
at any time which is both after the Distribution Date and prior to the time (the “Expiration Date”)
that is the earliest of (i) the Close of Business on December 31, 2018 (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 shall be initially $175.00 for each one one-thousandth of a share of
Series A Preferred Stock or Series B Preferred Stock purchasable upon the exercise of a Right. The
Purchase Price and the number of one one-thousandths of a share of Series A Preferred Stock or
Series B Preferred Stock or other securities or property to be acquired upon exercise of a Right
shall be subject to adjustment from time to time as provided in Sections 11, 13 and 27 hereof and
shall be payable in lawful money of the United States of America in accordance with paragraph (c)
of this Section 7.

     (c) Except as otherwise provided herein, upon receipt of a Right Certificate representing
exercisable Rights, with the form of election to purchase duly and properly executed, accompanied
by payment of the aggregate Purchase Price for the shares of Preferred Stock to be purchased and an
amount equal to any applicable tax or charge required to be paid by the holder of such Right
Certificate in accordance with Section 9 hereof, in cash or by certified check, cashier’s check or
money order payable to the order of the Company, the Rights Agent shall thereupon promptly (i) (A)
requisition from any transfer agent of the Preferred Stock (or make available, if the Rights Agent
is the transfer agent for such shares) certificates for the number of shares of Preferred Stock to
be purchased and, if the Rights Agent is the transfer agent for such shares, the Company hereby
irrevocably authorizes the Rights Agent, in its capacity as transfer agent, to comply with all such
requests or (B) if the Company shall have elected to deposit the total number of shares of
Preferred Stock issuable upon exercise of the Rights hereunder with a depository agent, requisition
from the depositary agent depositary receipts representing interests in such number of one
one-thousandths of a share of Preferred Stock as are to be purchased (in which case certificates
for the Preferred Stock represented by such receipts shall be deposited by the transfer agent with
the depositary agent) and the Company hereby directs the depositary agent to comply with all such
requests, (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) promptly 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, promptly deliver such cash to
or upon the order of the registered holder of such Right Certificate. In the event that the Company
is obligated to issue other securities of the Company, pay cash and/or distribute other property
pursuant to Section 11(a)(iii), 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.

12

 

     (d) Except as otherwise provided herein, in case the registered holder of any Right
Certificate shall exercise less than all of the Rights evidenced thereby, a new Right Certificate
evidencing Rights equivalent to the exercisable Rights remaining unexercised shall be issued by the
Rights Agent to the registered holder of such Right Certificate or to his duly authorized assigns,
subject to the provisions of Section 14 hereof.

     (e) Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor
the Company shall be obligated to undertake any action with respect to a registered holder of
Rights upon the occurrence of any purported transfer or exercise of Rights pursuant to Section 6
hereof or this Section 7 unless such registered holder shall have (i) completed and signed the
certificate contained in the form of assignment or form of election to purchase set forth on the
reverse side of the Rights Certificate surrendered for such transfer 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 or the Rights Agent shall reasonably request.

     Section 8. Cancellation and Destruction of Right Certificates.

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

     Section 9. Availability of Shares of Preferred Stock.

     (a) The Company covenants and agrees that it will cause to be reserved and kept available out
of its authorized and unissued shares of Preferred Stock, the number of shares of Preferred Stock
that will be sufficient to permit the exercise in full of all outstanding Rights.

     (b) So long as the shares of Preferred Stock issuable upon the exercise of Rights may be
listed or admitted to trading on any national securities exchange, or traded in the
over-the-counter market and quoted on NASDAQ, the Company shall use its best efforts to cause, from
and after such time as the Rights become exercisable, all shares reserved for such issuance to be
listed or admitted to trading on such exchange, or quoted on NASDAQ, upon official notice of
issuance upon such exercise.

     (c) From and after such time as the Rights become exercisable, the Company shall use its best
efforts, if then necessary to permit the issuance of shares of Preferred Stock upon the exercise of
Rights, to register and qualify such shares of Preferred Stock under the Securities Act and any
applicable state securities or “Blue Sky” laws (to the extent exemptions therefrom are

13

 

not available), cause such registration statement and qualifications to become effective as soon as
possible after such filing and keep such registration and qualifications effective until the
earlier of the date as of which the Rights are no longer exercisable for such securities and the
Expiration Date. The Company may temporarily suspend, for a period of time not to exceed 90 days,
the exercisability of the Rights in order to prepare and file a registration statement under the
Securities Act and permit it to become effective. Upon 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
with prompt notice thereof to the Rights Agent. Notwithstanding any provision of this Agreement to
the contrary, the Rights shall not be exercisable in any jurisdiction unless the requisite
qualification in such jurisdiction shall have been obtained and until a registration statement
under the Securities Act (if required) shall have been declared effective.

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

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

     Section 10. Preferred Stock Record Date. Each Person in whose name any certificate for
Preferred Stock (or Common Stock and/or other securities, as the case may be) is issued upon the
exercise of Rights shall for all purposes be deemed to have become the holder of record of the
shares of Preferred Stock (or Common Stock and/or other securities, as the case may be) 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 or charges) was made; provided, however, that if the date of such surrender and
payment is a date upon which the Preferred Stock (or Common Stock and/or other securities, as the
case may be) 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 Stock (or Common Stock and/or other securities, as the case may
be) transfer books of the Company are open. Prior to the exercise of the Rights evidenced thereby,
the holder of a Right Certificate shall not be entitled to any rights of a holder of Preferred
Stock for which the Rights shall be exercisable, including, without

14

 

limitation, the right to vote or to receive dividends or other distributions, and shall not be
entitled to receive any notice of any proceedings of the Company, except as provided herein.

     Section 11. Adjustment of Purchase Price, Number and Kind of Shares and Number of Rights. The
Purchase Price, the number of shares of Preferred Stock or other securities or property purchasable
upon exercise of each Right and the number of Rights outstanding are subject to adjustment from
time to time as provided in this Section 11.

     (a)(i) In the event the Company shall at any time after the date of this Agreement (A) declare
and pay a dividend on the Preferred Stock payable in shares of Preferred Stock, (B) subdivide the
outstanding Preferred Stock, (C) combine the outstanding Preferred Stock into a smaller number of
shares of Preferred Stock or (D) issue any shares of its capital stock in a reclassification of the
Preferred Stock (including any such reclassification in connection with a consolidation or merger
in which the Company is the continuing or surviving corporation), except as otherwise provided in
this Section 11(a), the number and kind of shares of capital stock issuable on the effective date
of such subdivision, combination or reclassification, 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 Stock transfer books of the Company were open, the holder
would have owned upon such exercise and been entitled to receive by virtue of such dividend,
subdivision, combination or reclassification; provided, however, that in no event shall the
consideration to be paid upon the exercise of one Right be less than the aggregate par value of the
shares of capital stock of the Company issuable upon exercise of one Right.

          (ii) Subject to Section 24 of this Agreement, in the event any Person becomes an Acquiring
Person (the first occurrence of such event being referred to hereinafter as the “Flip-In Event”),
then (A) the Purchase Price shall be adjusted to be the Purchase Price in effect immediately prior
to the Flip-In Event multiplied by the number of one one-thousandths of a share of Preferred Stock
for which a Right was exercisable immediately prior to such Flip-In Event, whether or not such
Right was then exercisable and (B) each holder of a Right, except as otherwise provided in this
Section 11(a)(ii) and Section 11(a)(iii) hereof, shall thereafter have the right to receive, upon
exercise thereof at a price equal to the Purchase Price (as so adjusted), in accordance with the
terms of this Agreement and in lieu of shares of Preferred Stock, such number of shares of Class A
Common Stock, in the case of Class A Rights, and such number of shares of Class B Common Stock, in
the case of Class B Rights, as shall equal the result obtained by dividing the Purchase Price (as
so adjusted) by 50% of the current per share market price of the Class A Common Stock, in the case
of the Class A Rights, and by 50% of the current per share market price of the Class B Common
Stock, in the case of the Class B Rights, (in each case, determined pursuant to Section 11(d)
hereof) on the date of such Flip-In Event; provided, however, that the Purchase Price (as so
adjusted) and the number of shares of Class A Common Stock or Class B Common Stock, as the case may
be, so receivable upon exercise of a Right shall, following the Flip-In Event, be subject to
further adjustment as appropriate in accordance with Section 11(f) hereof. Notwithstanding anything
in this Agreement to the contrary, however, from and after the Flip-In Event, any Rights that are
or were acquired or are or were Beneficially Owned by (x) any Acquiring Person (or any Affiliate or
Associate of any Acquiring Person), (y)

15

 

a transferee of any Acquiring Person (or any such Affiliate or Associate) who becomes a transferee
after the Flip-In Event or (z) a transferee of any Acquiring Person (or any such Affiliate or
Associate) who became a transferee prior to or concurrently with the Flip-In Event pursuant to
either (I) a transfer (whether or not for consideration) from the Acquiring Person to holders of
its equity securities or to any Person with whom the Acquiring Person has any continuing agreement,
arrangement or understanding regarding the transferred Rights or (II) a transfer which the Board
has determined is part of a plan, arrangement or understanding which has as a primary purpose or
effect avoidance of the provisions of this paragraph, and subsequent transferees of such Persons,
shall be null and void without any further action and any holder (whether or not such holder is an
Acquiring Person or an Associate or Affiliate of an Acquiring Person) of such Rights shall
thereafter have no rights whatsoever with respect to such Rights under any provision of this
Agreement. The Company shall use all reasonable efforts to ensure that the provisions of this
Section 11(a)(ii) are complied with, but neither the Company nor the Rights Agent shall have any
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. From and after the Flip-In Event, no Right Certificate shall be issued pursuant to
Section 3 or Section 6 hereof that represents Rights that are or have become null and void pursuant
to the provisions of this paragraph, and any Right Certificate delivered to the Rights Agent that
represents Rights that are or have become null and void pursuant to the provisions of this
paragraph shall be canceled. From and after the occurrence of an event specified in Section 13(a)
hereof, any Rights that theretofore have not been exercised pursuant to this Section 11(a)(ii)
shall thereafter be exercisable only in accordance with Section 13 and not pursuant to this Section
11(a)(ii). The Company shall give the Rights Agent written notice of the identity of any Acquiring
Person, any Associate or Affiliate of such Acquiring Person known to the Company, and any nominee
of any of the foregoing known to the Company, and the Rights Agent may rely on such notice in
carrying out its duties under this Agreement and shall be deemed not to have any knowledge of the
identity of any such Acquiring Person, Associate or Affiliate, or the nominee of any of the
foregoing unless and until the Company has given such notice in accordance with Section 26 hereof.

          (iii) The Company may at its option substitute for a share of Class A Common Stock or a share
of Class B Common Stock, as the case may be, issuable upon the exercise of Rights in accordance
with the foregoing subparagraph (ii) a number of shares of Series A Preferred Stock or Series B
Preferred Stock, as the case may be, or fraction thereof such that the current per share market
price of one share of Series A Preferred Stock or Series B Preferred Stock, as the case may be,
multiplied by such number or fraction is equal to the current per share market price of one share
of Class A Common Stock or Class B Common Stock, as the case may be. In the event that there shall
not be sufficient shares of Common Stock authorized but unissued to permit the exercise in full of
the Rights in accordance with the foregoing subparagraph (ii), the Board shall, to the extent
permitted by applicable law and any material agreements then in effect to which the Company is a
party (A) determine the excess (such excess, the “Spread”) of (1) the value of the shares of Common
Stock issuable upon the exercise of each Class A Right and each Class B Right in accordance with
the foregoing subparagraph (ii) (respectively, the “Current Values”) over (2) the Purchase Price
(as adjusted in accordance with the foregoing subparagraph (ii)), and (B) with respect to each
Right (other than Rights which have become null and void pursuant to the foregoing subparagraph
(ii)), make adequate

16

 

provision to substitute for the shares of Class A Common Stock or Class B Common Stock, as the case
may be, issuable in accordance with the foregoing subparagraph (ii) upon exercise of the Right and
payment of the Purchase Price (as adjusted in accordance therewith), (1) cash, (2) a reduction in
such Purchase Price, (3) shares of Series A Preferred Stock or Series B Preferred Stock, as the
case may be, or other equity securities of the Company (including, without limitation, shares or
fractions of shares of preferred stock which, by virtue of having dividend, voting and liquidation
rights substantially comparable to those of the shares of Common Stock of the applicable class, are
deemed in good faith by the Board to have substantially the same value as the shares of Common
Stock of the applicable class (such shares of Preferred Stock and shares or fractions of shares of
preferred stock are hereinafter referred to as “Common Stock Equivalents”)), (4) debt securities of
the Company, (5) other assets or (6) any combination of the foregoing, having a value which, when
added to the value of the shares of Common Stock issued upon exercise of such Right, shall have an
aggregate value equal to the Current Value (less the amount of any reduction in such Purchase
Price), where such aggregate value has been determined by the Board upon the advice of a nationally
recognized investment banking firm selected in good faith by the Board; provided, however, that if
the Company shall not make adequate provision to deliver value pursuant to clause (B) above within
thirty (30) days following the date of the Flip-In Event (the “Section 11(a) (ii) Trigger Date”),
then the Company shall be obligated to deliver, to the extent necessary and permitted by applicable
law and any material agreements or instruments then in effect to which the Company is a party, upon
the surrender for exercise of a Right and without requiring payment of such Purchase Price, shares
of Common Stock of the applicable class (to the extent available), and then, if necessary, such
number or fractions of shares of Preferred Stock of the applicable series (to the extent available)
and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread.
If, upon the occurrence of the Flip-In Event, the Board shall determine in good faith that it is
likely that sufficient additional shares of Common Stock could be authorized for issuance upon
exercise in full of the Rights, then, if the Board so elects, the thirty (30) day period set forth
above may be extended and re-extended to the extent necessary, but not more than ninety (90) days
after the Section 11(a) (ii) Trigger Date, in order that the Company may seek stockholder approval
for the authorization of such additional shares (such thirty (30) day period, as it may be
extended, is herein called the “Substitution Period”). To the extent that the Company determines
that some action need be taken pursuant to the second and/or third sentence of this Section
11(a)(iii), the Company (x) shall provide, subject to Section 11(a)(ii) hereof and the last
sentence of this Section 11(a)(iii) hereof, that such action shall apply uniformly to all
outstanding Class A Rights and Class B Rights and (y) may suspend the exercisability of the Class A
Rights and the Class B Rights until the expiration of the Substitution Period in order to seek any
authorization of additional shares and/or to decide the appropriate form of distribution to be made
pursuant to such second sentence and to determine the value thereof. In the event of any such
suspension, the Company shall issue a public announcement (with prompt written notice thereof to
the Rights Agent) stating that the exercisability
of the Class A Rights and the Class B Rights have
been temporarily suspended, as well as a public announcement at such time as the suspension is no
longer in effect in each case, with prompt notice thereof to the Rights Agent. For purposes of this
Section 11(a)(iii), the value of the shares of Class A Common Stock and the Class B Common Stock,
as the case may be, shall be the current per share market price (as determined pursuant to Section
11(d)(i)) on the Section 11(a)(ii) Trigger Date and the per share or fractional value of any
“Common Stock Equivalent” shall be deemed to equal the current per share market price of

17

 

the Class A Common Stock or the Class B Common Stock, as the case may be. The Board may, but shall
not be required to, establish procedures to allocate the right to receive (a) shares of Class A
Common Stock upon the exercise of the Class A Rights among holders of Class A Rights and (b) shares
of Class B Common Stock upon the exercise of the Class B Rights among holders of Class B Rights, in
each case, pursuant to this Section 11(a)(iii).

     (b) In case the Company shall fix a record date for the issuance of rights, options or
warrants to all holders of Preferred Stock entitling them (for a period expiring within 45 calendar
days after such record date) to subscribe for or purchase Preferred Stock (or shares having the
same rights, privileges and preferences as the Preferred Stock (“equivalent preferred shares”)) or
securities convertible into Preferred Stock or equivalent preferred shares at a price per share of
Preferred Stock or equivalent preferred shares (or having a conversion price per share, if a
security convertible into shares of Preferred Stock or equivalent preferred shares) less than the
then current per share market price of the Preferred Stock (determined pursuant to Section 11(d)
hereof) 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 shares of Preferred Stock and equivalent
preferred shares outstanding on such record date plus the number of shares of Preferred Stock and
equivalent preferred shares which the aggregate offering price of the total number of shares of
Preferred Stock 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 shares of Preferred Stock and
equivalent preferred shares outstanding on such record date plus the number of additional shares of
Preferred Stock 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, whose determination shall be
described in a statement filed with the Rights Agent. Shares of Preferred Stock and equivalent
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 Stock (including any such distribution made in connection with a
consolidation or merger in which the Company is the continuing or surviving corporation) of
evidences of indebtedness or assets (other than a regular quarterly cash dividend or a dividend
payable in Preferred Stock) or subscription rights or warrants (excluding those referred to in
Section 11(b) hereof), the Purchase Price to be in effect after such record date shall be
determined by multiplying the Purchase Price in effect immediately prior to such record date by a
fraction, the numerator of which shall be the then current per share market price of the Preferred
Stock (determined pursuant to Section 11(d) hereof) on such record date, less the fair

18

 

market value (as determined in good faith by the Board 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 share of Preferred
Stock, and the denominator of which shall be such current per share market price (determined
pursuant to Section 11(d) hereof) of the Preferred Stock; provided, however, that in no event shall
the consideration to be paid upon the exercise of one Right be less than the aggregate par value of
the shares of capital stock 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) Except as otherwise provided herein, for the purpose of any computation hereunder, the
“current per share market price” of any security (a “Security” for the purpose of this Section
11(d)(i)) on any date shall be deemed to be the average of the daily closing prices per share of
such Security for the 30 consecutive Trading Days (as such term is hereinafter defined) immediately
prior to but not including such date; provided, however, that in the event that the current per
share market price of the Security is determined during a period following the announcement by the
issuer of such Security of (A) a dividend or distribution on such Security payable in shares of
such Security or securities convertible into such shares or (B) any subdivision, combination or
reclassification of such Security, and prior to the expiration of 30 Trading Days after but not
including the ex-dividend date for such dividend or distribution, or the record date for such
subdivision, combination or reclassification, then, and in each such case, the current per share
market price shall be appropriately adjusted to reflect the current market price per share
equivalent of such Security. The closing price for each day shall be the last sale price, regular
way, or, in case no such sale takes place on such day, the average of the closing bid and asked
prices, regular way, in either case as reported by the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on the New York Stock Exchange or,
if the Security is not listed or admitted to trading on the New York Stock
Exchange, as reported in the principal consolidated transaction reporting system with respect to
securities listed on the principal national securities exchange on which the Security is listed or
admitted to trading or, if the Security is not listed or admitted to trading on any national
securities exchange, the last quoted price or, if not so quoted, the average of the high bid and
low asked prices in the over-the-counter market, as reported by 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. If on any such date no such market maker is making a market in the
Security, the fair value of the Security on such date as determined in good faith by the Board
shall be used. 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. If the Security is not publicly held or not so listed or traded, “current
per share market price” shall mean the fair value per share as determined in good faith by the
Board or, if at the time of such determination there is an Acquiring Person, by a nationally
recognized investment banking firm selected by the Board, which shall have the duty to make such
determination in a reasonable and objective manner, whose determination shall be described in a
statement filed with the Rights Agent and shall be conclusive for all purposes.

19

 

          (ii) For the purpose of any computation hereunder, if the Preferred Stock is publicly traded,
the “current per share market price” of the Preferred Stock shall be determined in accordance with
the method set forth in Section 11(d)(i) (other than the last sentence thereof). If the Preferred
Stock is not publicly traded but the Common Stock is publicly traded, the “current per share market
price” of the Preferred Stock shall be conclusively deemed to be the current per share market price
of the Common Stock as determined pursuant to Section 11(d)(i) multiplied by the then applicable
Adjustment Number (as defined in and determined in accordance with the Certificate of Amendment for
the Preferred Stock). If neither the Common Stock nor the Preferred Stock is publicly traded,
“current per share market price” shall mean the fair value per share as determined in good faith by
the Board, whose determination shall be described in a statement filed with the Rights Agent and
shall be conclusive for all purposes.

     (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 hundred-thousandth of a share of
Preferred Stock or one-hundredth of a share of Common Stock or other share or security as the case
may be. Notwithstanding the first sentence of this Section 11(e), any adjustment required by this
Section 11 shall be made no later than the earlier of (i) three years from the date of the
transaction which requires such adjustment or (ii) the Expiration Date.

     (f) If as a result of an adjustment made pursuant to Section 11(a) hereof, the holder of any
Right thereafter exercised shall become entitled to receive any shares of capital stock of the
Company other than the Preferred Stock, thereafter the Purchase Price and the number of such other
shares so receivable upon exercise of a 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 Stock contained in Sections 11(a), 11(b), 11(c), 11(e), 11(h), 11(i) and 11(m) hereof, as
applicable, and the provisions of Sections 7, 9, 10, 13 and 14 hereof with respect to the Preferred
Stock shall apply on like terms to any such other shares.

     (g) All Rights originally issued by the Company subsequent to any adjustment made to the
Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the
number of one one-thousandths of a share of Preferred Stock 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 Sections 11(b) and
11(c), each Right outstanding immediately prior to the making of such adjustment shall thereafter
evidence the right to purchase, at the adjusted Purchase Price, that number of one one-thousandths
of a share of Preferred Stock (calculated to the nearest one hundred-thousandth of a share of
Preferred Stock) obtained by (i) multiplying (x) the number of one one-thousandths of a share
purchasable upon the exercise of a Right immediately prior to such adjustment by (y) the Purchase
Price in effect immediately prior to such adjustment and (ii) dividing the product so
obtained by the Purchase Price in effect immediately after such adjustment.

20

 

     (i) The Company may elect on or after the date of any adjustment of the Purchase Price
pursuant to Sections 11(b) or 11(c) hereof to adjust the number of Rights, in substitution for any
adjustment in the number of one one-thousandths of a share of Preferred Stock purchasable upon the
exercise of a Right. Each of the Rights outstanding after such adjustment of the number of
Rights shall be exercisable for the number of one one-thousandths of a share of Preferred Stock for
which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior
to such adjustment of the number of Rights shall become that number of Rights (calculated to the
nearest one-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 (with prompt written notice
thereof to the Rights Agent) 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. Such
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 may, as promptly as practicable, cause to be
distributed to holders of record of Right Certificates on such record date Right Certificates
evidencing, subject to Section 14 hereof, the additional Rights to which such holders shall be
entitled as a result of such adjustment, or, at the option of the Company, shall cause to be
distributed to such holders of record in substitution and replacement for the Right Certificates
held by such holders prior to the date of adjustment, and upon surrender thereof, if required by
the Company, new Right Certificates evidencing all the Rights to which such holders shall be
entitled after such adjustment. Right Certificates so to be distributed shall be issued, executed
and countersigned in the manner provided for herein (and may bear, at the option of the Company,
the adjusted Purchase Price) and shall be registered in the names of the holders of record of Right
Certificates on the record date specified in the public announcement.

     (j) Irrespective of any adjustment or change in the Purchase Price or the number of one
one-thousandths of a share of Preferred Stock issuable upon the exercise of a Right, the Right
Certificates theretofore and thereafter issued may continue to express the Purchase Price and the
number of one one-thousandths of a share of Preferred Stock 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 then par value, if any, of the fraction of Preferred Stock or other shares of capital stock
issuable upon exercise of a Right, the Company shall take any corporate action which may, in the
opinion of its counsel, be necessary in order that the Company may validly and legally issue fully
paid and nonassessable shares of Preferred Stock or other such 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
(with prompt notice thereof to the Rights Agent) until the occurrence of such event issuing to the
holder of any Right exercised after such record date that number of shares of Preferred Stock and

21

 

shares of other capital stock or securities of the Company, if any, issuable upon such exercise
over and above the Preferred Stock and shares of other capital stock or other securities, assets or
cash 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 adjustments 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 Stock, issuance wholly
for cash of any shares of Preferred Stock at less than the current market price, issuance wholly
for cash of Preferred Stock or securities which by their terms are convertible into or exchangeable
for Preferred Stock, dividends on Preferred Stock payable in shares of Preferred Stock or issuance
of rights, options or warrants referred to hereinabove in Section 11(b), hereafter made by the
Company to holders of its Preferred Stock shall not be taxable to such stockholders.

     (n) Anything in this Agreement to the contrary notwithstanding, in the event that at any time
after the date of this Rights Agreement and prior to the Distribution Date, the Company shall (i)
declare and pay any dividend on the Common Stock payable in Common Stock or (ii) effect a
subdivision, combination or consolidation of the Common Stock (by reclassification or otherwise
than by payment of a dividend payable in Common Stock) into a greater or lesser number of shares of
Common Stock, then, in each such case, the number of Rights associated with each share of Common
Stock then outstanding, or issued or delivered thereafter, shall be proportionately adjusted so
that the number of Rights thereafter associated with each share of Common Stock following any such
event shall equal the result obtained by (A) in the case of the Class A Rights, multiplying the
number of Class A Rights associated with each share of Class A
Common Stock immediately prior to such event by a fraction the numerator of which shall be the
total number of shares of Class A Common Stock outstanding immediately prior to the occurrence of
the event and the denominator of which shall be the total number of shares of Class A Common Stock
outstanding immediately following the occurrence of such event (for purposes of such adjustment, in
the event that the Company declares a stock dividend on the Class A Common Stock payable in shares
of Class B Common Stock, such dividend shall be
treated with respect to the Class A Common Stock as if it had been declared and paid in shares of
Class A Common Stock) and (B) in the case of the Class B Rights, multiplying the number of Class B
Rights associated with each share of Class B Common Stock immediately prior to such event by a
fraction the numerator of which shall be the total number of shares of Class B Common Stock
outstanding immediately prior to the occurrence of the event and the denominator of which shall be
the total number of shares of Class B Common Stock outstanding
immediately following the occurrence of such event (for purposes of such adjustment, in the event
that the Company declares a stock dividend on the Class A Common Stock payable in shares of Class B
Common Stock, such shares of Class B Common Stock shall not be deemed outstanding immediately
following the occurrence of such event).

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     (o) The Company agrees that, after the earlier of the Distribution Date or the Stock
Acquisition Date, it will not, except as permitted by Sections 23, 24 or 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 eliminate the benefits intended to be afforded by
the Rights.

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

     Whenever an adjustment is made as provided in Section 11 or 13 hereof, the Company shall
promptly (a) prepare a certificate setting forth such adjustment, and a brief statement of the
facts and computations accounting for such adjustment, (b) file with the Rights Agent and with each
transfer agent for the Common Stock and the Preferred Stock 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
(if so required under Section 25 hereof). The Rights Agent shall be fully protected in relying on
any such certificate and on any adjustment therein contained and shall have no duty with respect
for and shall not be deemed to have knowledge of such adjustment unless and until it shall have
received such certificate.

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

     (a) In the event, directly or indirectly, at any time after the Flip-In Event (i) the Company
shall consolidate with or shall merge into any other Person, (ii) any Person shall merge with and
into the Company and the Company shall be the continuing or surviving corporation of such merger
and, in connection with such merger, all or part of the Common Stock shall be changed
into or exchanged for stock or other securities of any other Person (or of the Company) or cash or
any other property or (iii) the Company shall sell or otherwise transfer (or one or more of its
Subsidiaries shall sell or otherwise transfer), in one or more transactions, assets or earning
power aggregating 50% or more of the assets or earning power of the Company and its Subsidiaries
(taken as a whole) to any other Person (other than the Company or one or more wholly-owned
Subsidiaries of the Company), then upon the first occurrence of such event, proper provision shall
be made so that: (A) each holder of a Right (other than Rights which have become null and void
pursuant to Section 11(a)(ii) hereof) shall thereafter have the right to receive, upon the exercise
thereof at the Purchase Price (as theretofore adjusted in accordance with Section 11(a)(ii)
hereof), in accordance with the terms of this Agreement and in lieu of shares of Preferred Stock or
Common Stock of the Company, such number of validly authorized and issued, fully paid,
non-assessable and freely tradeable shares of Common Stock of the Principal Party (as such term is
hereinafter defined), not subject to any liens, encumbrances, rights of first refusal or other
adverse claims, as shall equal the result obtained by dividing the Purchase Price (as theretofore
adjusted in accordance with Section 11(a)(ii) hereof) by 50% of the current per share market price
of the Common Stock of such Principal Party (determined pursuant to
Section 11(d) hereof) on the date of consummation of such consolidation, merger, sale or transfer;
provided, however, that the Purchase Price (as theretofore adjusted in accordance with Section
11(a)(ii) hereof) and the number of shares of Common Stock of such Principal Party so receivable
upon exercise of a Right shall be subject to further adjustment as appropriate in accordance with
Section 11(f) hereof to reflect any events occurring in respect of the Common Stock of such
Principal Party after the occurrence of such consolidation, merger, sale or transfer; (B) such
Principal Party shall thereafter be liable for, and shall assume, by virtue of such

23

 

consolidation, merger, sale or transfer, all the obligations and duties of the Company pursuant to
this Rights Agreement; (C) the term “Company” shall thereafter be deemed to refer to such Principal
Party; and (D) such Principal Party shall take such steps (including, but not limited to,
the reservation of a sufficient number of its shares of Common Stock in accordance with Section 9
hereof) in connection with such 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 the shares of its Common Stock thereafter deliverable upon the exercise of the
Rights; provided that, upon the subsequent occurrence of any consolidation, merger, sale or
transfer of assets or other extraordinary transaction in respect of such Principal Party, each
holder of a Right shall thereupon be entitled to receive, upon exercise of a Right and payment of
the Purchase Price as provided in this Section 13(a), such cash, shares, rights, warrants and other
property which such holder would have been entitled to receive had such holder, at the time of such
transaction, owned the Common Stock of the Principal Party receivable upon the exercise of a Right
pursuant to this Section 13(a), and such Principal Party shall take such steps (including, but not
limited to, reservation of shares of stock) as may be necessary to permit the subsequent exercise
of the Rights in accordance with the terms hereof for such cash, shares, rights, warrants and other
property.

     (b) “Principal Party” shall mean:

          (i) in the case of any transaction described in (i) or (ii) of the first sentence of Section
13(a) hereof: (A) the Person that is the issuer of the securities into which the shares of Common
Stock are converted in such merger or consolidation, or, if there is more than one such issuer, the
issuer the shares of Common Stock of which have the greatest aggregate market value of shares
outstanding or (B) if no securities are so issued, (x) the Person that is the other party to the
merger, if such Person survives said merger, or, if there is more than one such Person, the Person
the shares of Common Stock of which have the greatest aggregate market value of shares outstanding
or (y) if the Person that is the other party to the merger does not survive the merger, the Person
that does survive the merger (including the Company if it survives) or (z) the Person resulting
from the consolidation; and

          (ii) in the case of any transaction described in (iii) of the first sentence of Section 13(a)
hereof, the Person that is the party receiving the greatest portion of the assets or earning power
transferred pursuant to such transaction or transactions, or, if each Person that is a party to
such transaction or transactions receives the same portion of the assets or earning power so
transferred or if the Person receiving the greatest portion of the assets or earning power cannot
be determined, whichever of such Persons is the issuer of Common Stock having the greatest
aggregate market value of shares outstanding; provided, however, that in any such case described in
the foregoing clause (b)(i) or (b)(ii), if the Common Stock of such Person is not at such time or
has not been continuously over the preceding 12-month period registered under Section 12 of the
Exchange Act, then (1) if such Person is a direct or indirect Subsidiary of another Person the
Common Stock of which is and has been so registered, the term “Principal Party” shall refer to such
other Person, or (2) if such Person is a Subsidiary, directly or indirectly, of more than one
Person, the Common Stock of all of which is and has been so registered, the term “Principal Party”
shall refer to whichever of such Persons is the issuer of Common Stock having the greatest
aggregate market value of shares outstanding, or (3) if such Person is owned, directly or

24

 

indirectly, by a joint venture formed by two or more Persons that are not owned, directly or
indirectly, by the same Person, the rules set forth in clauses (1) and (2) above shall apply to
each of the owners having an interest in the venture as if the Person owned by the joint venture
was a Subsidiary of both or all of such joint venturers, and the Principal Party in each such case
shall bear the obligations set forth in this Section 13 in the same ratio as its interest in such
Person bears to the total of such interests.

     (c) The Company shall not consummate any consolidation, merger, sale or transfer referred to
in Section 13(a) hereof unless prior thereto the Company and the Principal Party involved therein
shall have executed and delivered to the Rights Agent an agreement confirming that the requirements
of Sections 13(a) and (b) hereof shall promptly be performed in accordance with their terms and
that such consolidation, merger, sale or transfer of assets shall not result in a default by the
Principal Party under this Agreement as the same shall have been assumed by the Principal Party
pursuant to Sections 13(a) and (b) hereof and providing that, as soon as practicable after
executing such agreement pursuant to this Section 13, the Principal Party will:

          (i) prepare and file a registration statement under the Securities Act, if necessary, with
respect to the Rights and the securities purchasable upon exercise of the Rights on an appropriate
form, use its best efforts to cause such registration statement to become effective as soon as
practicable after such filing and use its best efforts to cause such registration statement to
remain effective (with a prospectus at all times meeting the requirements of the Securities Act)
until the Expiration Date and similarly comply with applicable state securities laws;

          (ii) use its best efforts, if the Common Stock of the Principal Party shall be listed or
admitted to trading on the New York Stock Exchange or on another national securities exchange, to
list or admit to trading (or continue the listing of) the Rights and the securities purchasable
upon exercise of the Rights on the New York Stock Exchange or such securities exchange, or, if the
Common Stock of the Principal Party shall not be listed or admitted to trading on the New York
Stock Exchange or a national securities exchange, to cause the Rights and the securities receivable
upon exercise of the Rights to be authorized for quotation on NASDAQ or on such other system then
in use;

          (iii) deliver to holders of the Rights historical financial statements for the Principal Party
which comply in all respects with the requirements for registration on Form 10 (or any successor
form) under the Exchange Act; and

          (iv) obtain waivers of any rights of first refusal or preemptive rights in respect of the
Common Stock of the Principal Party subject to purchase upon exercise of outstanding Rights.

     (d) In case the Principal Party has any provision in any of its authorized securities or in
its certificate of incorporation or by-laws or other instrument governing its corporate affairs,
which provision would have the effect of (i) causing such Principal Party to issue (other than to
holders of Rights pursuant to this Section 13), in connection with, or as a consequence of, the
consummation of a transaction referred to in this Section 13, shares of Common Stock or Common
Stock Equivalents of such Principal Party at less than the then current market price per

25

 

share thereof (determined pursuant to Section 11(d) hereof) or securities exercisable for, or
convertible into, Common Stock or Common Stock Equivalents of such Principal Party at less than
such then current market price (other than to holders of Rights pursuant to this Section 13), or
(ii) providing for any special payment, tax or similar provision in connection with the issuance of
the Common Stock of such Principal Party pursuant to the provisions of Section 13, then, in such
event, the Company hereby agrees with each holder of Rights that it shall not consummate any such
transaction unless prior thereto the Company and such Principal Party shall have executed and
delivered to the Rights Agent a supplemental agreement providing that the provision in question of
such Principal Party shall have been canceled, waived or amended, or that the authorized securities
shall be redeemed, so that the applicable provision will have no effect in connection with, or as a
consequence of, the consummation of the proposed transaction.

     (e) The Company covenants and agrees that it shall not, at any time after the Flip-In Event,
enter into any transaction of the type described in clauses (i) through (iii) of Section 13(a)
hereof if (i) at the time of or immediately after such consolidation, merger, sale, transfer or
other transaction 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, (ii) prior to, simultaneously with or immediately after such
consolidation, merger, sale, transfer or other transaction, the stockholders of the Person who
constitutes, or would constitute, the Principal Party for purposes of Section 13(b) hereof shall
have received a distribution of Rights previously owned by such Person or any of its Affiliates or
Associates or (iii) the form or nature of organization of the Principal Party would preclude or
limit the exercisability of the Rights.

     (f) Within a reasonable period of time after the consummation of any consolidation, merger,
sale or transfer referred to in Section 13(a) hereof, the Company shall furnish to the Rights Agent
a certificate setting forth the number of shares of Common Stock of such issuer which may be
purchased upon the exercise of each Right after the consummation of such consolidation, merger,
sale or transfer.

     Section 14. Fractional Rights and Fractional Shares.

     (a) The Company shall not be required to issue fractions of Rights or to distribute Right
Certificates which evidence fractional Rights (except prior to the Distribution Date in accordance
with Section 11(n) hereof). 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

26

 

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. If on any such date no such market maker is making a market in
the Rights, the current market value of the Rights on such date shall be the fair value of the
Rights as determined in good faith by the Board, or, if at the time of such determination there is
an Acquiring Person, by a nationally recognized investment banking firm selected by the Board,
which shall have the duty to make such determination in a reasonable and objective manner, which
determination shall be described in a statement filed with the Rights Agent and shall be conclusive
for all purposes.

     (b) The Company shall not be required to issue fractions of Preferred Stock (other than
fractions which are integral multiples of one one-thousandth of a share of Preferred Stock) or to
distribute certificates which evidence fractional shares of Preferred Stock (other than fractions
which are integral multiples of one one-thousandth of a share of Preferred Stock) upon the exercise
or exchange of Rights. Interests in fractions of Preferred Stock in integral multiples of one
one-thousandth of a share of Preferred Stock 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 Stock represented by such depositary receipts. In lieu of
fractional shares of Preferred Stock that are not integral multiples of one one-thousandth of a
share of Preferred Stock, the Company shall pay to the registered holders of Right Certificates at
the time such Rights are exercised or exchanged as herein provided an amount in cash equal to the
same fraction of the current market value of a whole share of Preferred Stock (as determined in
accordance with Section 14(a) hereof) for the Trading Day immediately prior to the date of such
exercise or exchange.

     (c) The Company shall not be required to issue fractions of shares of Common Stock or to
distribute certificates which evidence fractional shares of Common Stock upon the exercise or
exchange of Rights. In lieu of such fractional shares of Common Stock, the Company shall pay to the
registered holders of the Right Certificates with regard to which such fractional shares of
Common Stock would otherwise be issuable an amount in cash equal to the same fraction of the
current market value of a whole share of Common Stock (as determined in accordance with Section
14(a) hereof) for the Trading Day immediately prior to the date of such exercise or exchange.

     (d) 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 or exchange of a Right (except as
provided above).

     (e) Whenever a payment for a fractional Right or fractional share is to be made by the Rights
Agent, the Company shall (i) promptly prepare and deliver to the Rights Agent a certificate setting
forth in reasonable detail the facts related to such payment and the prices

27

 

and/or formulas utilized in calculating such payments, and (ii) provide sufficient monies to
the Rights Agent in the form of fully collected funds to make such payments. The Rights Agent
shall be fully protected in relying upon such a certificate and shall have no duty with respect to,
and shall not be deemed to have knowledge of any payment for fractional Rights or fractional shares
under any section of this Agreement relating to the payment of fractional Rights or fractional
shares unless and until the Rights Agent shall have received such a certificate and sufficient
monies.

     Section 15. Rights of Action. All rights of action in respect of this Agreement, excepting the
rights of action given to the Rights Agent under this Agreement, are vested in the respective
registered holders of the Right Certificates (and, prior to the Distribution Date, the registered
holders of the Common Stock); and any registered holder of any Right Certificate (or, prior to the
Distribution Date, of the Common Stock), 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 Stock), on his
own behalf and for his own benefit, may 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 (or, prior to the Distribution Date, such Common
Stock) in the manner provided therein 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 by the Company of this Agreement and
will be entitled to specific performance of the obligations under, and injunctive relief against
actual or threatened violations by the Company of, the obligations of any Person subject to this
Agreement.

     Section 16. Agreement of Right Holders. Every holder of a Right, by accepting the same,
consents and agrees with the Company and the Rights Agent and with every other holder of a Right
that:

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

     (b) after the Distribution Date, the Right Certificates are transferable only on the registry
books of the Rights Agent if surrendered at the office or agency of the Rights Agent designated for
such purpose, 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 Stock 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 Stock
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

     (d) notwithstanding anything in this Agreement to the contrary, the Rights Agent shall not
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

28

 

injunction or other order, judgment, decree or ruling (whether interlocutory or final) issued
by a court of competent jurisdiction or by a governmental, regulatory, self-regulatory or
administrative agency or commission, or any statute, rule, regulation or executive order
promulgated or enacted by any governmental authority, prohibiting or otherwise restraining
performance of such obligation.

     Section 17. Right Certificate Holder Not Deemed a Stockholder. No holder, as such, of any
Right Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the
holder of the Preferred Stock or any other securities of the Company which may at any time be
issuable on the exercise or exchange of the Rights represented thereby, nor shall anything
contained herein or in any Right Certificate be construed to confer upon the holder of any Right
Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for
the election of directors or upon any matter submitted to stockholders at any meeting thereof, or
to give or withhold consent to any corporate action, or to receive notice of meetings or other
actions affecting stockholders (except as provided in this Agreement), or to receive dividends or
subscription rights, or otherwise, until the Rights evidenced by such Right Certificate shall have
been exercised or exchanged in accordance with the provisions hereof.

     Section 18. 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, preparation,
delivery, amendment and execution of this Agreement and the exercise and performance of its duties
hereunder. The Company also agrees to indemnify the Rights Agent for, and to hold it harmless
against, any loss, liability, damage, judgment, fine, penalty, claim, demand, settlement, cost or
expense (including, without limitation, the reasonable fees and expenses of one legal counsel),
incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent
(which gross negligence, bad faith or willful misconduct must be determined by a final,
non-appealable order, judgment, decree or ruling of a court of competent jurisdiction), for any
action taken, suffered or omitted by the Rights Agent in connection with the acceptance,
administration, exercise and performance of its duties under this Agreement, including, without
limitation, the costs and expenses of defending against any claim of liability arising therefrom,
directly or indirectly. Notwithstanding the foregoing, in the event that it is determined by a
final, non-appealable order, judgment, decree or ruling of a court of competent jurisdiction that
the Rights Agent is not entitled to be indemnified hereunder, the Rights Agent shall promptly
reimburse the Company for all amounts theretofore paid to the Rights Agent for which the Rights
Agent was not entitled. The provisions of this Section 18 and Section 20 below shall survive the
termination of this Agreement, the exercise or expiration of the Rights and the resignation,
replacement or removal of the Rights Agent. The costs and expenses incurred in enforcing this right
of indemnification shall be paid by the Company. Anything to the contrary notwithstanding, in no
event shall the Rights Agent be liable for special, punitive, indirect, consequential or incidental
loss or damage of any kind whatsoever (including but not limited to lost profits), even if the
Rights Agent has been advised of the likelihood of such loss or damage. Any liability of the Rights
Agent under this Rights Agreement will be limited to the amount of fees paid by the Company to the
Rights Agent.

29

 

     (b) The Rights Agent shall be authorized and protected and shall incur no liability for, or in
respect of any action taken, suffered or omitted by it in connection with its acceptance and
administration of this Agreement and in the exercise and performance of its duties hereunder, in
reliance upon any Right Certificate or certificate representing Preferred Stock or Common Stock or
for other securities of the Company, instrument of assignment or transfer, power of attorney,
endorsement, affidavit, letter, notice, instruction, direction, consent, certificate, statement or
other paper or document believed by it to be genuine and to be signed, executed and, when
necessary, verified, guaranteed or acknowledged, by the proper Person or Persons, or otherwise upon
advice of counsel as set forth in Section 20 below, in the absence of gross negligence, bad faith
or willful misconduct on the part of the Rights Agent (which gross negligence, bad faith or willful
misconduct must be determined by a final, non-appealable order, judgment, decree or ruling of a
court of competent jurisdiction). The Rights Agent shall not be deemed to have any knowledge of
any event of which it was supposed to receive notice thereof hereunder, and the Rights Agent shall
be fully protected and shall incur no liability for failing to take action in connection therewith,
unless and until the Company has given such notice in accordance with Section 26 hereof.

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

     (a) Any Person into which the Rights Agent or any successor Rights Agent may be merged or with
which it may be consolidated, or any Person resulting from any merger or consolidation to which the
Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to the
shareholder services 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
document or any further act on the part of any of the parties hereto; provided, that such Person
would be eligible for appointment as a successor Rights Agent under the provisions of Section 21
hereof. In case at the time such successor Rights Agent shall succeed to the agency created by this
Agreement, any of the Right Certificates shall have been countersigned but not delivered, any such
successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver
such Right Certificates so countersigned; and in case at that time any of the Right Certificates
shall not have been countersigned, any successor Rights Agent may countersign such Right
Certificates either in the name of the predecessor Rights Agent or in the name of the successor
Rights Agent; and in all such cases such Right Certificates shall have the full force provided in
the Right Certificates and in this Agreement.

     (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.

     Section 20. Duties of Rights Agent. The Rights Agent undertakes only the duties and
obligations expressly imposed by this Agreement (and no implied duties) upon the following

30

 

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
or an employee of the Rights Agent), and the advice or opinion of such counsel shall be full and
complete authorization and protection to the Rights Agent and the Rights Agent shall incur no
liability for or in respect of any action taken, suffered or omitted by it in the absence of gross
negligence, bad faith or willful misconduct in accordance with such advice or opinion.

     (b) Whenever in the performance of its duties under this Agreement the Rights Agent shall deem
it necessary or desirable that any fact or matter be proved (including, without limitation, the
identity of any Acquiring Person and the determination of current per share market price) or
established by the Company prior to taking, suffering or omitting any action hereunder, such fact
or matter (unless other evidence in respect thereof be herein specifically prescribed) may be
deemed to be conclusively proved and established by a certificate signed by the President and the
Secretary of the Company and delivered to the Rights Agent; and such certificate shall be full
authorization and protection to the Rights Agent and the Rights Agent shall incur no liability for
or in respect of any action taken, suffered or omitted by it in the absence of gross negligence,
bad faith or willful misconduct under the provisions of this Agreement in reliance upon such
certificate.

     (c) The Rights Agent shall be liable hereunder to the Company and any other Person only for
its own gross negligence, bad faith or willful misconduct (each as determined by a final,
non-appealable order, judgment, decree or ruling of a court of competent jurisdiction).

     (d) The Rights Agent shall not be liable for or by reason of any of the statements of fact or
recitals contained in this Agreement or in the Right Certificates (except as to its
countersignature thereof) or be required to verify the same, but all such statements and recitals
are and shall be deemed to have been made by the Company only. The Rights Agent makes no
representations as to the validity or sufficiency of this Agreement or of the Right Certificates,
except with respect to its due authorization, execution and delivery hereof.

     (e) The Rights Agent shall not have any liability for or be under any responsibility in
respect of the validity of this Agreement or the execution and delivery hereof (except the due
execution hereof by the Rights Agent) or in respect of the validity or execution of any Right
Certificate (except as to 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 null and void pursuant to Section 11(a)(ii) hereof) or any
adjustment in the terms of the Rights provided for in Sections 3, 11, 13, 23 and 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 receipt of a
certificate furnished pursuant to Section 12, describing such change or adjustment upon which the
Rights Agent may rely); nor shall it by any act hereunder be deemed to make any representation or
warranty as to the authorization or reservation of any shares of Preferred Stock or other
securities to be issued pursuant to this Agreement or any Right Certificate or as to whether any
shares of

31

 

Preferred Stock 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 person reasonably believed by the Rights Agent to
be one of the President or the Secretary of the Company, and to apply to such officers for advice
or instructions in connection with its duties, and such instructions shall be full authorization
and protection to the Rights Agent and the Rights Agent shall not be liable for any action taken,
suffered or omitted by it in accordance with instructions of any such officer or for any delay in
acting while waiting for those instructions. The Rights Agent shall be fully authorized and
protected in relying upon the most recent instructions received from any such officer. Any
application by the Rights Agent for written instructions from the Company may, at the option of the
Rights Agent, set forth in writing any action proposed to be taken, suffered or omitted by the
Rights Agent with respect to its duties or obligations under this Agreement and the date on and/or
after which such action shall be taken or suffered or such omission shall be effective. The Rights
Agent shall not be liable to the Company for any action taken or suffered by, or omission of, the
Rights Agent in accordance with a proposal included in any such application on or after the date
specified in such application (which date shall not be less than five Business Days after the date
any officer of the Company actually receives such application unless any such officer shall have
consented in writing to an earlier date) unless, prior to taking any such action (or the effective
date in the case of an omission), the Rights Agent shall have received written instructions in
response to such application specifying the action to be taken, suffered or omitted.

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

     (i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it
or perform any duty hereunder either itself (or through its directors, officers and employees) or
by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable
for any act, omission, default, neglect or misconduct of any such attorneys or agents or for any
loss to the Company or any other Person resulting from any such act, omission, default, neglect or
misconduct, absent gross negligence, bad faith or willful misconduct (each as determined by a
final, non-appealable order, judgment, decree or ruling of a court of competent jurisdiction) in
the selection and continued employment thereof.

32

 

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

     (k) If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or
transfer, the certificate contained in the form of assignment or the form of election to purchase
set forth on the reverse thereof, as the case may be, has not been completed to certify the holder
is not an Acquiring Person (or an Affiliate or Associate thereof), the Rights Agent shall not take
any further action with respect to such requested exercise or transfer without first consulting
with the Company.

     Section 21. Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign
and be discharged from its duties under this Agreement upon 30 days’ notice in writing mailed to
the Company and to each transfer agent of the Common Stock and/or Preferred Stock, as applicable,
by registered or certified mail, and, following the Distribution Date, 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 Stock and/or Preferred Stock, as applicable,
by registered or certified mail, and, following the Distribution Date, 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 resigning, removed, or incapacitated Rights Agent shall remit to
the Company, or to any successor Rights Agent designated by the Company, all books, records, funds,
certificates or other documents or instruments of any kind then in its possession which were
acquired by such resigning, removed or incapacitated Rights Agent in connection with its services
as Rights Agent hereunder, and shall thereafter be discharged from all duties and obligations
hereunder. Following notice of such removal, resignation or incapacity, the Company shall appoint
a successor to such 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 Person organized and doing business under
the laws of the United States or the laws of any state of the United States or the District of
Columbia, in good standing, which is authorized to do business under such laws and is subject to
supervision or examination by federal or state authority and which has at the time of its
appointment as Rights Agent a combined capital and surplus of at least $50 million. 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 Stock and/or Preferred Stock, as applicable, and, following the

33

 

Distribution Date, mail a notice thereof in writing by first-class mail 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.

     Section 22. Issuance of New Right Certificates. Notwithstanding any of the provisions of this
Agreement or of the Rights to the contrary, the Company may, at its option, issue new Right
Certificates evidencing Rights in such forms as may be approved by its Board of Directors to
reflect any adjustment or change in the Purchase Price and the number or kind or class of shares or
other securities or property purchasable under the Right Certificates made in accordance with the
provisions of this Agreement. In addition, in connection with the issuance or sale of Common Stock
following the Distribution Date and prior to the Expiration Date, the Company may with respect to
shares of Common Stock so issued or sold pursuant to (i) the exercise of stock options, (ii) under
any employee plan or arrangement, (iii) upon the exercise, conversion or exchange of securities,
notes or debentures issued by the Company or (iv) a contractual obligation of the Company, in each
case existing prior to the Distribution Date, issue Right Certificates representing the
appropriate number of Rights in connection with such issuance or sale.

     Section 23. Redemption.

     (a) The Board may, at its option, at any time prior to the Flip-In Event, redeem all but not
less than all the then outstanding Rights at a redemption price of $.01 per Right, appropriately
adjusted to reflect any stock split, stock dividend, reclassification or similar transaction with
respect to the Common Stock occurring after the date hereof (such redemption price being
hereinafter referred to as the “Redemption Price”). The redemption of the Rights may be made
effective at such time, on such basis and with such conditions as the Board in its sole discretion
may establish. The Redemption Price shall be payable, at the option of the Company, in cash, shares
of Common Stock, or such other form of consideration as the Board shall determine.

     (b) Immediately upon the action of the Board ordering the redemption of the Rights pursuant to
paragraph (a) of this Section 23 (or at such later time as the Board may establish for the
effectiveness of such redemption), 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 for each Right so held. The Company shall promptly give public
notice of any such redemption (with prompt written notice thereof to the Rights Agent); provided,
however, that the failure to give, or any defect in, any such notice shall not affect the validity
of such redemption. Within 10 days after such action of the Board ordering the redemption of the
Rights (or such later time as the Board may establish for the effectiveness of such redemption),
the Company shall mail a notice of redemption to the Rights Agent and 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 Stock. Any notice which is mailed in the manner herein provided shall be deemed given,
whether or not the holder receives the notice. Each such notice of redemption shall state the
method by which the payment of the Redemption Price will be made.

34

 

     Section 24. Exchange.

     (a) The Board may, at its option, at any time after the Flip-In Event, exchange all or part of
the then outstanding and exercisable Rights (which shall not include Rights that have become null
and void pursuant to the provisions of Section 11(a)(ii) hereof) for Common Stock at an exchange
ratio of one share of Class A Common Stock per Class A Right and one share of Class B Common Stock
per Class B Right, appropriately adjusted to reflect any stock split, reclassification, stock
dividend or similar transaction with respect to the Common Stock occurring after the date hereof
(such amount per Right being hereinafter referred to as the “Exchange Ratio”). Notwithstanding the
foregoing, the Board shall not be empowered to effect such exchange at any time after an Acquiring
Person shall have become the Beneficial Owner of (i) shares of Class A Common Stock aggregating 50%
or more of the shares of Class A Common Stock then outstanding or (ii) shares of Common Stock
aggregating 50% or more of the shares of Common Stock then outstanding. From and after the
occurrence of an event specified in Section 13(a) hereof, any Rights that theretofore have not been
exchanged pursuant to this Section 24(a) shall thereafter be exercisable only in accordance with
Section 13 and may not be exchanged pursuant to this Section 24(a). The exchange of the Rights by
the Board may be made effective at such time, on such basis and with such conditions as the Board
in its sole discretion may establish.

     (b) Immediately upon the effectiveness of the action of the Board ordering the exchange of any
Rights pursuant to paragraph (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 the
holders of such Rights shall be to receive that number of shares of Common Stock equal to the
number of such Rights held by such holder multiplied by the Exchange Ratio. The Company shall
promptly give public notice of any such exchange with prompt notice thereof to the Rights Agent;
provided, however, that the failure to give, or any defect in, such notice shall not affect the
validity of such exchange. The Company shall promptly mail a notice of any such exchange to all of
the holders of the Rights so exchanged at their last addresses as they appear upon the registry
books of the Rights Agent. Any notice which is mailed in the manner herein provided shall be deemed
given, whether or not the holder receives the notice. Each such notice of exchange will state the
method by which the exchange of the shares of Common Stock for Rights will be effected and, in the
event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange
of (a) Class A Rights shall be effected pro rata based on the number of available shares of Class A
Common Stock and the number of Class A Rights (other than Class A Rights which have become null and
void pursuant to the provisions of Section 11(a)(ii) hereof) held by each holder of Class A Rights
and (b) Class B Rights shall be effected pro rata based on the number of available shares of Class
B Common Stock and the number of Class B Rights (other than Class B Rights which have become null
and void pursuant to the provisions of Section 11(a)(ii) hereof) held by each holder of Class B
Rights.

     (c) The Company may at its option substitute, and, in the event that there shall not be
sufficient shares of Class A Common Stock or Class B Common Stock, as the case may be, authorized
but unissued to permit an exchange of Class A Rights or Class B Rights, as the case may be, for
Class A Common Stock or Class B Common Stock, as the case may be, as contemplated in accordance
with this Section 24, the Company shall substitute to the extent of

35

 

such insufficiency, for each share of Class A Common Stock or Class B Common Stock, as the case may
be, that would otherwise be issuable upon exchange of a Class A Right or a Class B Right, as the
case may be, a number of shares of Series A Preferred Stock or Series B Preferred Stock, as the
case may be, or fraction thereof (or equivalent preferred shares, as such term is defined in
Section 11(b)) such that the current per share market price (determined pursuant to Section 11(d)
hereof) of one share of Series A Preferred Stock or Series B Preferred Stock, as the case may be,
(or equivalent preferred share) multiplied by such number or fraction is equal to the current per
share market price of one share of Class A Common Stock or Class B Common Stock, as the case may
be, (determined pursuant to Section 11(d) hereof) as of the date of such exchange.

     Section 25. Notice of Certain Events.

     (a) In case the Company shall at any time after the earlier of the Distribution Date and the
Stock Acquisition Date propose (i) to pay any dividend payable in stock of any class to the holders
of its Preferred Stock or to make any other distribution to the holders of its Preferred Stock
(other than a regular quarterly cash dividend), (ii) to offer to the holders of its Preferred Stock
rights or warrants to subscribe for or to purchase any additional shares of Preferred Stock or
shares of stock of any class or any other securities, rights or options, (iii) to effect any
reclassification of its Preferred Stock (other than a reclassification involving only the
subdivision or combination of outstanding Preferred Stock), (iv) to effect the liquidation,
dissolution or winding up of the Company, or (v) to pay any dividend on the Common Stock payable in
Common Stock or to effect a subdivision, combination or consolidation of the Common Stock (by
reclassification or otherwise than by payment of dividends in Common Stock), then, in each such
case, the Company shall give to each holder of a Right Certificate and the Rights Agent, in
accordance with Section 26 hereof, a written notice of such proposed action, which shall specify
the record date for the purposes of such stock dividend, or distribution of rights or warrants, or
the date on which such liquidation, dissolution or winding up is to take place and the date of
participation therein by the holders of the Common Stock and/or Preferred Stock, if any such date
is to be fixed, and such notice shall be so given in the case of any action covered by clause (i)
or (ii) above at least 10 days prior to the record date for determining holders of the Preferred
Stock for purposes of such action, and in the case of any such other action, at least 10 days prior
to the date of the taking of such proposed action or the date of participation therein by the
holders of the Common Stock and/or Preferred Stock, whichever shall be the earlier.

     (b) In case any event described in Section 11(a)(ii) or Section 13 shall occur then the
Company shall as soon as practicable thereafter give to the Rights Agent and to each holder of a
Right Certificate (or if occurring prior to the Distribution Date, the holders of the Common Stock)
in accordance with Section 26 hereof, a notice of the occurrence of such event, which notice shall
describe such event and the consequences of such event to holders of Rights under Section 11(a)(ii)
and Section 13 hereof.

     Section 26. Notices. Notices or demands authorized by this Agreement to be given or made by
the Rights Agent or by the holder of any Right Certificate to or on the Company shall be
sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another
address is filed in writing with the Rights Agent) as follows:

36

 

Hubbell Incorporated

584 Derby Milford Road

Orange, Connecticut 06477-4024

Attention: Corporate Secretary

Subject to the provisions of Section 21 hereof, any notice or demand authorized by this Agreement
to be given or made by the Company or by the holder of any Right Certificate to or on the Rights
Agent shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed
(until another address is filed in writing with the Company) as follows:

Mellon Investor Services LLC

BNY Mellon Shareowner Services

Newport Office Center VII

480 Washington Blvd.

Jersey City, NJ 07310

Attention: Relationship Manager

With a copy to:

Mellon Investor Services LLC

BNY Mellon Shareowner Services

Newport Office Center VII

480 Washington Blvd.

Jersey City, NJ 07310

Attention: Legal Department

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 (or, prior to the Distribution Date, to the holder of
any certificate representing Common Stock) shall be sufficiently given or made if sent by
first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown
on the registry books of the Company; provided, however, that notwithstanding anything in this
Agreement to the contrary, prior to the Distribution Date a filing by the Company with the
Securities and Exchange Commission shall constitute sufficient notice to the holders of securities
of the Company, including the Rights, for purposes of this Agreement and no other notice need be
given.

     Section 27. Supplements and Amendments. Except as provided in the penultimate sentence of this
Section 27, for so long as the Rights are then redeemable, the Company may in its sole and absolute
discretion, and the Rights Agent shall if the Company so directs, supplement or amend any provision
of this Agreement in any respect without the approval of any holders of the Rights or Common Stock.
From and after the time that the Rights are no longer redeemable, except as provided in the
penultimate sentence of this Section 27, the Company may, and the Rights Agent shall, if the
Company so directs, from time to time supplement or amend this Agreement without the approval of
any holders of Rights (i) to cure any ambiguity or to correct or supplement any provision contained
herein which may be defective or inconsistent

37

 

with any other provisions herein or (ii) to make any other changes or provisions in regard to
matters or questions arising hereunder which the Company may deem necessary or desirable, including
but not limited to extending the Final Expiration Date; provided, however, that no such supplement
or amendment shall (a) adversely affect the interests of the holders of Rights as such (other than
an Acquiring Person or an Affiliate or Associate of an Acquiring Person), (b) cause this Agreement
again to become amendable other than in accordance with this sentence or (c) cause the Rights again
to become redeemable. Notwithstanding anything contained in this Agreement to the contrary, no
supplement or amendment shall be made which reduces the Redemption Price. 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 herein to the contrary, any supplement or
amendment that affects the Rights Agent’s own rights, duties, obligations or immunities under this
Agreement shall require the written consent of the Rights Agent, which shall not be unreasonably
withheld.

     Section 28. Successors. All the covenants and provisions of this Agreement by or for the
benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective
successors and assigns hereunder.

     Section 29. Benefits of this Agreement. Nothing in this Agreement shall be construed to give
to any Person other than the Company, the Rights Agent and the registered holders of the Right
Certificates (and, prior to the Distribution Date, the Common Stock) any legal or equitable right,
remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive
benefit of the Company, the Rights Agent and the registered holders of the Right Certificates (and,
prior to the Distribution Date, the Common Stock).

     Section 30. Determinations and Actions by the Board of Directors. The Board shall have the
exclusive power and authority to administer this Agreement and to exercise the rights and powers
specifically granted to the Board or to the Company, or as may be necessary or advisable in the
administration of this Agreement, including, without limitation, the right and power to (i)
interpret the provisions of this Agreement and (ii) make all determinations deemed necessary or
advisable for the administration of this Agreement (including, without limitation, a determination
to redeem or not redeem the Rights or to amend or not amend this Agreement). All such actions,
calculations, interpretations and determinations (including, for purposes of clause (y) below, all
omissions with respect to the foregoing) that are done or made by the Board in good faith, shall
(x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights,
as such, and all other parties, and (y) not subject the Board to any liability to the holders of
the Rights. The Rights Agent is entitled always to assume the Company’s Board of Directors acted
in good faith and shall be fully protected and incur no liability in reliance thereon.

     Section 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; provided,
however, that if such excluded provision shall affect the rights,

38

 

immunities, duties or obligations of the Rights Agent, the Rights Agent shall be entitled to resign
upon ten Business Days’ notice to the Company.

     Section 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 Connecticut and for all purposes shall
be governed by and construed in accordance with the laws of such State applicable to contracts to
be made and performed entirely within such State; provided, however, that all provisions regarding
the rights, duties and obligations of the Rights Agent shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made and to be performed
entirely within such State.

     Section 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.

     Section 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.

[Signature Page Follows]

39

 

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

	 	 	 	 	 
	 

	 	Hubbell Incorporated
	 	 
	 
	 	 	 	 
	 

	 	By: /s/ David G. Nord	 	 
	 

	 	 	 	 
	 

	 	Name:  David G. Nord	 	 
	 

	 	 	 	 
	 

	 	Title:   Senior Vice President and
Chief Financial Officer	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Mellon Investor Services LLC,

as Rights Agent	 	 
	 
	 	 	 	 
	 

	 	By:  /s/ Lee Kowalsky	 	 
	 

	 	 	 	 
	 

	 	Name:  Lee Kowalsky	 	 
	 

	 	 	 	 
	 

	 	Title:    Relationship
Manager	 	 
	 

	 	 	 	 

40

 

Exhibit A

FORM OF

CERTIFICATE OF AMENDMENT

with respect to

SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

of

HUBBELL INCORPORATED

     Pursuant to Section 33-666 of the Connecticut Business Corporation Act

     Hubbell Incorporated (the “Company”), a corporation organized and existing under the laws of
Connecticut, in accordance with the provisions of Section 33-637 thereof, DOES HEREBY CERTIFY:

     That pursuant to the authority vested in the Board of Directors in accordance with the
provisions of the Certificate of Incorporation of the said Company, the said Board of Directors of
the said Company on December 9, 1998 duly adopted the following amendment to said Certificate of
Incorporation in the form of a resolution creating a series of 56,000 shares of Preferred Stock
designated as “Series A Junior Participating Preferred Stock”:

RESOLVED, that pursuant to the authority vested in the
Board of Directors of this Company in accordance with the
provisions of the Certificate of Incorporation, a series of
Preferred Stock, without par value, of the Company be
and hereby is created, that the designation and number of shares
thereof and the preferences, limitations and relative rights of
the shares of such series are as follows, and that the
Certificate of Incorporation be and hereby is amended by adding
the following at the end of paragraph FOURTH:

SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

     1. Designation and Amount.

     There shall be a series of Preferred Stock that shall be designated as “Series A Junior
Participating Preferred Stock,” and the number of shares constituting such series shall be 56,000.
Such number of shares may be increased or decreased by resolution of the Board of Directors and
filing of a Certificate of Amendment to the Certificate of Incorporation of the Company; provided,
however, that no decrease shall reduce the number of shares of Series A Junior Participating
Preferred Stock to less than the number of shares then issued and outstanding plus

A-1

 

the number of shares issuable upon exercise of outstanding rights, options or warrants or
upon conversion of outstanding securities issued by the Company.

     2. Dividends and Distribution.

     (A) Subject to the prior and superior rights of the holders of any shares of any class or
series of stock of the Company ranking prior and superior to the shares of Series A Junior
Participating Preferred Stock with respect to dividends, the holders of shares of Series A Junior
Participating Preferred Stock, in preference to the holders of shares of any class or series of
stock of the Company ranking junior to the Series A Junior Participating Preferred Stock in respect
thereof, shall be entitled to receive, when, as and if declared by the Board of Directors out of
funds legally available for the purpose, quarterly dividends payable in cash on the 15th day of
January, April, July and October, in each year (each such date being referred to herein as a
“Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after
the first issuance of a share or fraction of a share of Series A Junior Participating Preferred
Stock, in an amount per share (rounded to the nearest cent) equal to the greater of (a) $10.00 and
(b) the Adjustment Number (as defined below) times the aggregate per share amount of all cash
dividends, and the Adjustment Number times the aggregate per share amount (payable in kind) of all
non-cash dividends or other distributions other than a dividend payable in shares of the Class A
Common Stock, par value $0.01, of the Company (the “Class A Common Stock”) or shares of the Class B
Common Stock, par value $0.01, of the Company (the “Class B Common Stock”) declared on the Class A
Common Stock or a subdivision of the outstanding shares of Class A Common Stock (by
reclassification or otherwise), since the immediately preceding Quarterly Dividend Payment Date,
or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any
share or fraction of a share of Series A Junior Participating Preferred Stock. The “Adjustment
Number” shall initially be 1000. In the event the Company shall at any time after December 9, 1998
(i) declare and pay any dividend on Class A Common Stock payable in shares of Class A Common Stock
or Class B Common Stock, (ii) subdivide the outstanding Class A Common Stock or (iii) combine the
outstanding Class A Common Stock into a smaller number of shares, then in each such case the
Adjustment Number in effect immediately prior to such event shall be adjusted by multiplying such
Adjustment Number by a fraction the numerator of which is the number of shares of Class A Common
Stock outstanding immediately after such event and the denominator of which is the number of shares
of Class A Common Stock that were outstanding immediately prior to such event. For purposes of
paragraph (A) of this Section 2, shares of Class B Common Stock declared as a dividend with respect
to shares of Class A Common Stock shall be treated as shares of Class A Common Stock.

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

     (C) Dividends shall begin to accrue and be cumulative on outstanding shares of Series A Junior
Participating Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of
issue of such shares of Series A Junior Participating Preferred Stock, unless the date

A-2

 

of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date,
in which case dividends on such shares shall begin to accrue from the date of issue of such shares,
or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date
for the determination of holders of shares of Series A Junior Participating Preferred Stock
entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either
of which events such dividends shall begin to accrue and be cumulative from such Quarterly Dividend
Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares of
Series A Junior Participating Preferred Stock in an amount less than the total amount of such
dividends at the time accrued and payable on such shares shall be allocated pro rata on a
share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix
a record date for the determination of holders of shares of Series A Junior Participating Preferred
Stock entitled to receive payment of a dividend or distribution declared thereon, which record date
shall be no more than 60 days prior to the date fixed for the payment thereof.

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

     (A) Each share of Series A Junior Participating Preferred Stock shall entitle the holder
thereof to a number of votes equal to the product of (I) the Adjustment Number and (II) twenty (20)
on all matters submitted to a vote of the stockholders of the Company.

     (B) Except as required by law and by Section 10 hereof, holders of Series A Junior
Participating Preferred Stock shall have no special voting rights and their consent shall not be
required (except to the extent they are entitled to vote with holders of Class A Common Stock as
set forth herein) for taking any corporate action.

     (C) If, at the time of any annual meeting of stockholders for the election of directors, the
equivalent of six quarterly dividends (whether or not consecutive) payable on any share or shares
of Series A Junior Participating Preferred Stock are in default, the number of directors
constituting the Board of Directors of the Company shall be increased by two. In addition to voting
together with the holders of Class A Common Stock and Class B Common Stock for the election of
other directors of the Company, the holders of record of the Series A Junior Participating
Preferred Stock, voting separately as a class to the exclusion of the holders of Class A Common
Stock and Class B Common Stock, shall be entitled at said meeting of stockholders (and at each
subsequent annual meeting of stockholders), unless all dividends in arrears on the Series A Junior
Participating Preferred Stock have been paid or declared and set apart for payment prior thereto,
to vote for the election of two directors of the Company, the holders of any Series A Junior
Participating Preferred Stock being entitled to cast a number of votes per share of Series A Junior
Participating Preferred Stock as is specified in paragraph (A) of this Section 3. Each such
additional director shall serve until the next annual meeting of stockholders for the election of
directors, or until his successor shall be elected and shall qualify, or until his right to hold
such office terminates pursuant to the provisions of this Section 3(C). Until the default in
payments of all dividends which permitted the election of said directors shall cease to exist, any
director who shall have been so elected pursuant to the next preceding sentence may be removed at
any time, without cause, only by the affirmative vote of the holders of the shares

A-3

 

of Series A Junior Participating Preferred Stock at the time entitled to cast a majority of the
votes entitled to be cast for the election of any such director at a special meeting of such
holders called for that purpose, and any vacancy thereby created may be filled by the vote of such
holders. If and when such default shall cease to exist, the holders of the Series A Junior
Participating Preferred Stock shall be divested of the foregoing special voting rights, subject to
revesting in the event of each and every subsequent like default in payments of dividends. Upon the
termination of the foregoing special voting rights, the terms of office of all persons who may have
been elected directors pursuant to said special voting rights shall forthwith terminate, and the
number
of directors constituting the Board of Directors shall be reduced by two. The voting rights granted
by this Section 3(c) shall be in addition to any other voting rights granted to the holders of the
Series A Junior Participating Preferred Stock in this Section 3.

     4. Certain Restrictions.

     (A) Whenever quarterly dividends or other dividends or distributions payable on the Series A
Junior Participating Preferred Stock as provided in Section 2 are in arrears, thereafter and until
all accrued and unpaid dividends and distributions, whether or not declared, on shares of Series A
Junior Participating Preferred Stock outstanding shall have been paid in full, the Company 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 Junior Participating 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 Junior Participating Preferred Stock, except dividends paid ratably on the Series A
Junior Participating Preferred Stock and all such parity stock on which dividends are payable or in
arrears in proportion to the total amounts to which the holders of all such shares are then
entitled; or

          (iii) purchase or otherwise acquire for consideration any shares of Series A Junior
Participating Preferred Stock, or any shares of stock ranking on a parity with the Series A Junior
Participating 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 Series A Junior
Participating Preferred Stock, or to such holders and holders of any such shares ranking on a
parity therewith, 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. For purposes of such determination, the Board of Directors of the
Company will not take into account the differences in the voting rights between the Series A Junior
Participating Preferred Stock and the Series B Junior Participating Preferred Stock, without par
value, of the Company (the “Series B Preferred Stock”).

A-4

 

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

     5. Reacquired Shares. Any shares of Series A Junior Participating Preferred Stock purchased or
otherwise acquired by the Company in any manner whatsoever shall thereupon become authorized but
unissued shares of Preferred Stock 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 any conditions and
restrictions on issuance set forth herein.

     6. Liquidation, Dissolution or Winding Up.

     (A) Upon any liquidation, dissolution or winding up of the Company, voluntary or otherwise, no
distribution shall be made to the holders of shares of stock ranking junior (either as to dividends
or upon liquidation, dissolution or winding up) to the Series A Junior Participating Preferred
Stock unless, prior thereto, the holders of shares of Series A Junior Participating Preferred Stock
shall have received an amount per share (the “Series A Liquidation Preference”) equal to the
greater of (i) $100 plus an amount equal to accrued and unpaid dividends and distributions thereon,
whether or not declared, to the date of such payment and (ii) the Adjustment Number times the per
share amount of all cash and other property to be distributed in respect of the Class A Common
Stock upon such liquidation, dissolution or winding up of the Company.

     (B) In the event, however, that there are not sufficient assets available to permit payment in
full of the Series A Liquidation Preference and the liquidation preferences of all other classes
and series of stock of the Company, if any, that rank on a parity with the Series A Junior
Participating Preferred Stock in respect thereof, then the assets available for such distribution
shall be distributed ratably to the holders of the Series A Junior Participating Preferred Stock
and the holders of such parity shares in proportion to their respective liquidation preferences.

     (C) Neither the merger or consolidation of the Company into or with another corporation nor
the merger or consolidation of any other corporation into or with the Company shall be deemed to be
a liquidation, dissolution or winding up of the Company within the meaning of this Section 6.

     7. Consolidation, Merger, Etc. In case the Company shall enter into any consolidation, merger,
combination or other transaction in which the outstanding shares of Common Stock are exchanged for
or changed into other stock or securities, cash and/or any other property, then in any such case
each share of Series A Junior Participating Preferred Stock shall at the same time be similarly
exchanged or changed in an amount per share equal to the Adjustment Number 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 Class A Common Stock is changed or exchanged.

     8. No Redemption. Shares of Series A Junior Participating Preferred Stock shall not be subject
to redemption by the Company.

A-5

 

     9. Ranking. The Series A Junior Participating Preferred Stock shall rank (a) junior to all
other series of the Preferred Stock (other than the Series B Preferred Stock) as to the payment of
dividends and as to the distribution of assets upon liquidation, dissolution or winding up, unless
the terms of any such series shall provide otherwise, (b) pari passu with the Series B Preferred
Stock as to such matters and (c) senior to the Class A Common Stock and the Class B Common stock as
to such matters.

     10. Amendment. At any time that any shares of Series A Junior Participating Preferred Stock
are outstanding, the Certificate of Incorporation of the Company shall not be amended in any manner
which would materially alter or change the powers, preferences or special rights of the Series A
Junior Participating Preferred Stock so as to affect them adversely without the affirmative vote of
the holders of two-thirds of the outstanding shares of Series A Junior Participating Preferred
Stock, voting separately as a class.

     11. Fractional Shares. Series A Junior Participating Preferred Stock may be issued in
fractions of a share that shall entitle the holder, in proportion to such holder’s fractional
shares, to exercise voting rights, receive dividends, participate in distributions and to have the
benefit of all
other rights of holders of Series A Junior Participating Preferred Stock.

     The foregoing amendment to the Certificate of Incorporation was adopted by the Board of
Directors without shareholder action. Shareholder vote was not required for such adoption.

     IN WITNESS WHEREOF, the undersigned has executed this Certificate
of Amendment this ___ day of                     , 1998.

	 	 	 
	 

Name:

	 	  
	Title:
	 	 

A-6

 

Exhibit B

FORM OF

CERTIFICATE OF AMENDMENT

with respect to

SERIES B JUNIOR PARTICIPATING PREFERRED STOCK

of

HUBBELL INCORPORATED

     Pursuant to Section 33-666 of the Connecticut Business Corporation Act

     Hubbell Incorporated (the “Company”), a corporation organized and existing under the laws of
Connecticut, in accordance with the provisions of Section 33-637 thereof, DOES HEREBY CERTIFY:

     That pursuant to the authority vested in the Board of Directors in accordance with the
provisions of the Certificate of Incorporation of the said Company, the said Board of Directors of
the said Company on December 9, 1998 duly adopted the following amendment to said Certificate of
Incorporation in the form of a resolution creating a series of 280,000 shares of Preferred Stock
designated as “Series B Junior Participating Preferred Stock”:

RESOLVED, that pursuant to the authority vested in the
Board of Directors of this Company in accordance with the
provisions of the Certificate of Incorporation, a series of
Preferred Stock, without par value, of the Company be
and hereby is created, that the designation and number of shares
thereof and the preferences, limitations and relative rights of
the shares of such series are as follows, and that the
Certificate of Incorporation be and hereby is amended by adding
the following at the end of paragraph FOURTH:

     SERIES B JUNIOR PARTICIPATING PREFERRED STOCK

     1. Designation and Amount. There shall be a series of Preferred Stock that shall be designated
as “Series B Junior Participating Preferred Stock,” and the number of shares constituting such
series shall be 280,000 . Such number of shares may be increased or decreased by resolution of the
Board of Directors and filing of a Certificate of Amendment to the Certificate of Incorporation of
the Company; provided, however, that no decrease shall reduce the number of shares of Series B
Junior Participating Preferred Stock to less than the number of shares then issued and outstanding
plus the number of shares issuable upon exercise of

B-1

 

outstanding rights, options or warrants or upon conversion of outstanding securities issued by the
Company.

     2. Dividends and Distribution.

     (A) Subject to the prior and superior rights of the holders of any shares of any class or
series of stock of the Company ranking prior and superior to the shares of Series B Junior
Participating Preferred Stock with respect to dividends, the holders of shares of Series B Junior
Participating Preferred Stock, in preference to the holders of shares of any class or series of
stock of the Company ranking junior to the Series B Junior Participating Preferred Stock in respect
thereof, shall be entitled to receive, when, as and if declared by the Board of Directors out of
funds legally available for the purpose, quarterly dividends payable in cash on the 15th day of
January, April, July and October, 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 B Junior Participating Preferred
Stock, in an amount per share (rounded to the nearest cent) equal to the greater of (a) $10.00 and
(b) the Adjustment Number (as defined below) times the aggregate per share amount of all cash
dividends, and the Adjustment Number times the aggregate per share amount (payable in kind) of all
non-cash dividends or other distributions other than a dividend payable in shares of the Class B
Common Stock, par value $0.01, of the Company (the “Class B Common Stock”) declared on the Class B
Common Stock or on shares of the Class A Common Stock, par value $0.01, of the Company (the “Class
A Common Stock”) or a subdivision of the outstanding shares of Class B Common Stock (by
reclassification or otherwise), since the immediately preceding Quarterly Dividend Payment Date,
or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any
share or fraction of a share of Series B Junior Participating Preferred Stock. The “Adjustment
Number” shall initially be 1000. In the event the Company shall at any time after December 9, 1998
(i) declare and pay any dividend on Class B Common Stock or Class A Common Stock payable in shares
of Class B Common Stock, (ii) subdivide the outstanding Class B Common Stock or (iii) combine the
outstanding Class B Common Stock into a smaller number of shares, then in each such case the
Adjustment Number in effect immediately prior to such event shall be adjusted by multiplying such
Adjustment Number by a fraction the numerator of which is the number of shares of Class B Common
Stock outstanding immediately after such event and the denominator of which is the number of shares
of Class B Common Stock that were outstanding immediately prior to such event. For purposes of
paragraph (A) of this Section 2, shares of Class B Common Stock declared as a dividend with respect
to shares of Class A Common Stock shall not be deemed outstanding immediately following the
occurrence of such event.

     (B) The Company shall declare a dividend or distribution on the Series B Junior Participating
Preferred Stock as provided in paragraph (A) above immediately after it declares a dividend or
distribution on the Class B Common Stock (other than a dividend payable in shares of Class B Common
Stock or a dividend payable with respect to Class A Common Stock payable in shares of Class B
Common Stock).

     (C) Dividends shall begin to accrue and be cumulative on outstanding shares of Series B Junior
Participating Preferred Stock from the Quarterly Dividend Payment Date next preceding

B-2

 

the date of issue of such shares of Series B Junior Participating 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 B Junior Participating 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 B Junior Participating Preferred Stock in an amount less than the total amount of such
dividends at the time accrued and payable on such shares shall be allocated pro rata on a
share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix
a record date for the determination of holders of shares of Series B Junior Participating Preferred
Stock entitled to receive payment of a dividend or distribution declared thereon, which record date
shall be no more than 60 days prior to the date fixed for the payment thereof.

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

     (A) Each share of Series B Junior Participating Preferred Stock shall entitle the holder
thereof to a number of votes equal to the Adjustment Number on all matters submitted to a vote of
the stockholders of the Company.

     (B) Except as required by law and by Section 10 hereof, holders of Series B Junior
Participating Preferred Stock shall have no special voting rights and their consent shall not be
required (except to the extent they are entitled to vote with holders of Class B Common Stock as
set forth herein) for taking any corporate action.

     (C) If, at the time of any annual meeting of stockholders for the election of directors, the
equivalent of six quarterly dividends (whether or not consecutive) payable on any share or shares
of Series B Junior Participating Preferred Stock are in default, the number of directors
constituting the Board of Directors of the Company shall be increased by two. In addition to voting
together with the holders of Class B Common Stock and Class A Common Stock for the election of
other directors of the Company, the holders of record of the Series B Junior Participating
Preferred Stock, voting separately as a class to the exclusion of the holders of Class B Common
Stock and Class A Common Stock, shall be entitled at said meeting of stockholders (and at each
subsequent annual meeting of stockholders), unless all dividends in arrears on the Series B Junior
Participating Preferred Stock have been paid or declared and set apart for payment prior thereto,
to vote for the election of two directors of the Company, the holders of any Series B Junior
Participating Preferred Stock being entitled to cast a number of votes per share of Series B Junior
Participating Preferred Stock as is specified in paragraph (A) of this Section 3. Each such
additional director shall serve until the next annual meeting of stockholders for the election of
directors, or until his successor shall be elected and shall qualify, or until his right to hold
such office terminates pursuant to the provisions of this Section 3(C). Until the default in
payments of all dividends which permitted the election of said directors shall cease to exist, any
director who shall have been so elected pursuant to the next preceding sentence may

B-3

 

be removed at any time, without cause, only by the affirmative vote of the holders of the shares of
Series B Junior Participating Preferred Stock at the time entitled to cast a majority of the votes
entitled to be cast for the election of any such director at a special meeting of such holders
called for that purpose, and any vacancy thereby created may be filled by the vote of such holders.
If and when such default shall cease to exist, the holders of the Series B Junior Participating
Preferred Stock shall be divested of the foregoing special voting rights, subject to revesting in
the event of each and every subsequent like default in payments of dividends. Upon the termination
of the foregoing special voting rights, the terms of office of all persons who may have been
elected directors pursuant to said special voting rights shall forthwith terminate, and the number
of directors constituting the Board of Directors shall be reduced by two. The voting rights granted
by this Section 3(c) shall be in addition to any other voting rights granted to the holders of the
Series B Junior Participating Preferred Stock in this Section 3.

     4. Certain Restrictions.

     (A) Whenever quarterly dividends or other dividends or distributions payable on the Series B
Junior Participating 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 B
Junior Participating Preferred Stock outstanding shall have been paid in full, the Company 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 B Junior Participating 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 B Junior Participating Preferred Stock, except dividends paid ratably on the Series B
Junior Participating Preferred Stock and all such parity stock on which dividends are payable or in
arrears in proportion to the total amounts to which the holders of all such shares are then
entitled; or

          (iii) purchase or otherwise acquire for consideration any shares of Series B Junior
Participating Preferred Stock, or any shares of stock ranking on a parity with the Series B Junior
Participating 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 Series B Junior
Participating Preferred Stock, or to such holders and holders of any such shares ranking on a
parity therewith, 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. For purposes of such determination, the Board of Directors of the
Company will not take into account the differences in the voting rights between the Series B Junior
Participating Preferred Stock and the Series A Junior Participating Preferred Stock, without par
value, of the Company (the “Series A Preferred Stock”).

B-4

 

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

     5. Reacquired Shares. Any shares of Series B Junior Participating Preferred Stock purchased or
otherwise acquired by the Company in any manner whatsoever shall thereupon become authorized but
unissued shares of Preferred Stock 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 any conditions and
restrictions on issuance set forth herein.

     6. Liquidation, Dissolution or Winding Up.

     (A) Upon any liquidation, dissolution or winding up of the Company, voluntary or otherwise, no
distribution shall be made to the holders of shares of stock ranking junior (either as to dividends
or upon liquidation, dissolution or winding up) to the Series B Junior Participating Preferred
Stock unless, prior thereto, the holders of shares of Series B Junior Participating Preferred Stock
shall have received an amount per share (the “Series B Liquidation Preference”) equal to the
greater of (i) $100 plus an amount equal to accrued and unpaid dividends and distributions thereon,
whether or not declared, to the date of such payment and (ii) the Adjustment Number times the per
share amount of all cash and other property to be distributed in respect of the Class B Common
Stock upon such liquidation, dissolution or winding up of the Company.

     (B) In the event, however, that there are not sufficient assets available to permit payment in
full of the Series B Liquidation Preference and the liquidation preferences of all other classes
and series of stock of the Company, if any, that rank on a parity with the Series B Junior
Participating Preferred Stock in respect thereof, then the assets available for such distribution
shall be distributed ratably to the holders of the Series B Junior Participating Preferred Stock
and the holders of such parity shares in proportion to their respective liquidation preferences.

     (C) Neither the merger or consolidation of the Company into or with another corporation nor
the merger or consolidation of any other corporation into or with the Company shall be deemed to be
a liquidation, dissolution or winding up of the Company within the meaning of this Section 6.

     7. Consolidation, Merger, Etc. In case the Company shall enter into any consolidation, merger,
combination or other transaction in which the outstanding shares of Common Stock are exchanged for
or changed into other stock or securities, cash and/or any other property, then in any such case
each share of Series B Junior Participating Preferred Stock shall at the same time be similarly
exchanged or changed in an amount per share equal to the Adjustment Number 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 Class B Common Stock is changed or exchanged.

     8. No Redemption. Shares of Series B Junior Participating Preferred Stock shall not be
subject to redemption by the Company.

B-5

 

     9. Ranking. The Series B Junior Participating Preferred Stock shall rank (a) junior to all
other series of the Preferred Stock (other than the Series A Preferred Stock) as to the payment of
dividends and as to the distribution of assets upon liquidation, dissolution or winding up, unless
the terms of any such series shall provide otherwise, (b) pari passu with the Series A Preferred
Stock as to such matters and (c) senior to the Class A Common Stock and the Class B Common stock as
to such matters.

     10. Amendment. At any time that any shares of Series B Junior Participating Preferred Stock
are outstanding, the Certificate of Incorporation of the Company shall not be amended in any manner
which would materially alter or change the powers, preferences or special rights of the Series B
Junior Participating Preferred Stock so as to affect them adversely without the affirmative vote of
the holders of two-thirds of the outstanding shares of Series B Junior Participating Preferred
Stock, voting separately as a class.

     11. Fractional Shares. Series B Junior Participating Preferred Stock may be issued in
fractions of a share that shall entitle the holder, in proportion to such holder’s fractional
shares, to exercise voting rights, receive dividends, participate in distributions and to have the
benefit of all other rights of holders of Series B Junior Participating Preferred Stock.

     The foregoing amendment to the Certificate of Incorporation was adopted by the Board of
Directors without shareholder action. Shareholder vote was not required for such adoption.

IN
WITNESS WHEREOF, the undersigned has executed this Certificate of Amendment this ___ day of
                    , 1998.

	 	 	 
	 

Name:

	 	  
	Title:
	 	 

B-6

 

Exhibit C

Form of Class A Right Certificate

Certificate No. R-                    

NOT EXERCISABLE AFTER DECEMBER 31, 2018 OR EARLIER IF
REDEMPTION OR EXCHANGE OCCURS. THE CLASS A RIGHTS ARE
SUBJECT TO REDEMPTION AT $.01 PER CLASS A RIGHT AND TO
EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.
UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS
AGREEMENT, CLASS A RIGHTS OWNED BY OR TRANSFERRED TO ANY
PERSON WHO IS OR BECOMES AN ACQUIRING PERSON (AS DEFINED
IN THE RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES THEREOF
WILL BECOME NULL AND VOID AND WILL NO LONGER BE
TRANSFERABLE.

CLASS A RIGHT CERTIFICATE

HUBBELL INCORPORATED

     This certifies that                                          or registered assigns, is the registered
owner of the number of Class A Rights set forth above, each of which entitles the owner thereof,
subject to the terms, provisions and conditions of the Amended and Restated Rights Agreement, dated
as of December 17, 2008, as the same may be amended from time to time (the “Rights Agreement”),
between Hubbell Incorporated, a Connecticut corporation (the “Company”), and Mellon Investor
Services LLC, as Rights Agent (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., New
York City time, on December 31, 2018 at the office or agency of the Rights Agent designated for
such purpose, or of its successor as Rights Agent, one one-thousandth of a fully paid
non-assessable share of Series A Junior Participating Preferred Stock, without par value (the
“Series A Preferred Stock”), of the Company at a purchase price of $175.00 per one one-thousandth
of a share of Series A Preferred Stock (the “Purchase Price”), upon presentation and surrender of
this Class A Right Certificate with the Form of Election to Purchase duly executed. The number of
Class A Rights evidenced by this Class A Right Certificate (and the number of one one-thousandths
of a share of Series A Preferred Stock 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 17,
2008, based on the Series A Preferred Stock as constituted at such date. As provided in the Rights
Agreement, the Purchase Price, the number of one one-thousandths of a share of Series A Preferred
Stock (or other securities or property) which may be purchased upon the exercise of the Class A
Rights and the number of Class A Rights evidenced by this Class A Right Certificate are subject to
modification and adjustment upon the happening of certain events.

C-1

 

     This Class A 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 Class A Right Certificates. Copies of the
Rights Agreement are on file at the principal executive offices of the Company and the
above-mentioned office or agency of the Rights Agent. The Company will mail to the holder of this
Class A Right Certificate a copy of the Rights Agreement without charge after receipt of a written
request therefor.

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

     Subject to the provisions of the Rights Agreement, the Class A Rights evidenced by this
Certificate (i) may be redeemed by the Company at a redemption price of $.01 per Class A Right or
(ii) may be exchanged in whole or in part for shares of the Company’s Class A Common Stock, par
value $0.01 per share (“Class A Common Stock”), or shares of Series A Preferred Stock.

     No fractional shares of Series A Preferred Stock or Class A Common Stock will be issued upon
the exercise or exchange of any Class A Right or Class A Rights evidenced hereby (other than
fractions of Series A Preferred Stock which are integral multiples of one one-thousandth of a share
of Series A Preferred Stock, which may, at the election of the Company, be evidenced by depository
receipts), but in lieu thereof a cash payment will be made, as provided in the Rights Agreement.

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

C-2

 

     This Class A 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                      ___, 20___.

	 	 	 	 	 
	HUBBELL INCORPORATED	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	[Title]	 	 
	ATTEST:	 	 
	 
	 	 	 	 
	 	 	 
	[Title]	 	 
	 
	 	 	 	 
	Countersigned:	 	 
	 
	 	 	 	 
	MELLON INVESTOR SERVICES LLC,

as Rights Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	[Title]	 	 

C-3

 

Form of Reverse Side of Class A Right Certificate

FORM OF ASSIGNMENT

(To be executed by the registered holder if such

holder desires to transfer the Class A Right Certificate)

     FOR VALUE RECEIVED        
             
hereby sells, assigns and transfers unto         
                           
            
                           
          

 

(Please print name and address of transferee)

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

	 	 	 	 	 
	Dated:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	Signature	 	 

Signature Guaranteed:

     Signatures must be guaranteed by a member or participant in the Securities Transfer Agent
Medallion Program, the New York Stock Exchange Medallion Signature Program or the Stock Exchanges
Medallion Program.

	 	 	 
	 

(To be completed)

	 	  

     The undersigned hereby certifies that the Class A Rights evidenced by this Class A Right
Certificate are not Beneficially Owned by, were not acquired by the undersigned from, and are not
being assigned to an Acquiring Person or an Affiliate or Associate thereof (as defined in the
Rights Agreement).

	 	 	 
	 

Signature

	 	  

C-4

 

Form of Reverse Side of Class A Right Certificate — continued

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires to exercise

Class A Rights represented by the Class A Rights Certificate)

To HUBBELL INCORPORATED:

     The undersigned hereby irrevocably elects to exercise                      Class A Rights represented by
this Class A Right Certificate to purchase the shares of Series A Preferred Stock issuable upon the
exercise of such Class A Rights (or such other securities or property of the Company or of any
other Person which may be issuable upon the exercise of the Class A Rights) and requests that
certificates for such shares of Series A Preferred Stock (or such other securities) be issued in
the name of:

 

(Please print name and address)

 

If such number of Class A Rights shall not be all the Class A Rights evidenced by this Class A
Right Certificate, a new Class A Right Certificate for the balance remaining of such Class A 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 must conform to holder specified on Class A Right Certificate)

Signature Guaranteed:

     Signatures must be guaranteed by a member or participant in the Securities Transfer Agent
Medallion Program, the New York Stock Exchange Medallion Signature Program or the Stock Exchanges
Medallion Program.

C-5

 

Form of Reverse Side of Class A Right Certificate — continued

 

(To be completed)

     The undersigned hereby certifies that the Class A Rights evidenced by this Class A Right
Certificate are not Beneficially Owned by, and were not acquired by the undersigned from, an
Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement).

	 	 	 
	 
Signature

	 	  

 

NOTICE

     The signature in the Form of Assignment or Form of Election to Purchase, as the case may be,
must conform to the name as written upon the face of this Class A 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 will deem the beneficial
owner of the Class A Rights evidenced by this Class A Rights Certificate to be an Acquiring Person
or an Affiliate or Associate thereof and such Assignment or Election to Purchase will not be
honored.

C-6

 

Exhibit D

Form of Class B Right Certificate

Certificate No. R-                    

NOT EXERCISABLE AFTER DECEMBER 31, 2018 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS.
THE CLASS B RIGHTS ARE SUBJECT TO REDEMPTION AT $.01 PER CLASS B RIGHT AND TO
EXCHANGE ON THE TERMS SET FORTH IN THE CLASS B RIGHTS AGREEMENT. UNDER CERTAIN
CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, CLASS B RIGHTS OWNED BY OR
TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING PERSON (AS DEFINED IN THE
RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES THEREOF WILL BECOME NULL AND VOID AND WILL
NO LONGER BE TRANSFERABLE.

CLASS B RIGHT CERTIFICATE

HUBBELL INCORPORATED

     This certifies that                                          or registered assigns, is the registered
owner of the number of Class B 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 17,
2008, as the same may be amended from time to time (the “Rights Agreement”), between Hubbell
Incorporated, a Connecticut corporation (the “Company”), and Mellon Investor Services LLC, as
Rights Agent (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., New York City time,
on December 31, 2018 at the office or agency of the Rights Agent designated for such purpose, or of
its successor as Rights Agent, one one-thousandth of a fully paid non-assessable share of Series B
Junior Participating Preferred Stock, without par value (the “Series B Preferred Stock”), of the
Company at a purchase price of $175.00 per one one-thousandth of a share of Series B Preferred
Stock (the “Purchase Price”), upon presentation and surrender of this Class B Right Certificate
with the Form of Election to Purchase duly executed. The number of Class B Rights evidenced by this
Class B Right Certificate (and the number of one one-thousandths of a share of Series B Preferred
Stock 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 17, 2008, based on the Series B
Preferred Stock as constituted at such date. As provided in the Rights Agreement, the Purchase
Price, the number of one one-thousandths of a share of Series B Preferred Stock (or other
securities or property) which may be purchased upon the exercise of the Class B Rights and the
number of Class B Rights evidenced by this Class B Right Certificate are subject to modification
and adjustment upon the happening of certain events.

D-1

 

     This Class B 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 Class B Right Certificates. Copies of the
Rights Agreement are on file at the principal executive offices of the Company and the
above-mentioned office or agency of the Rights Agent. The Company will mail to the holder of this
Class B Right Certificate a copy of the Rights Agreement without charge after receipt of a written
request therefor.

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

     Subject to the provisions of the Rights Agreement, the Class B Rights evidenced by this
Certificate (i) may be redeemed by the Company at a redemption price of $.01 per Class B Right or
(ii) may be exchanged in whole or in part for shares of the Company’s Class B Common Stock, par
value $0.01 per share (“Class B Common Stock”), or shares of Series B Preferred Stock.

     No fractional shares of Series B Preferred Stock or Class B Common Stock will be issued upon
the exercise or exchange of any Class B Right or Class B Rights evidenced hereby (other than
fractions of Series B Preferred Stock which are integral multiples of one one-thousandth of a share
of Series B Preferred Stock, which may, at the election of the Company, be evidenced by depository
receipts), but in lieu thereof a cash payment will be made, as provided in the Rights Agreement.

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

D-2

 

     This Class B 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                      ___, 20___.

	 	 	 	 	 
	HUBBELL INCORPORATED	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	[Title]	 	 
	ATTEST:	 	 
	 
	 	 	 	 
	 	 	 
	[Title]	 	 
	 
	 	 	 	 
	Countersigned:	 	 
	 
	 	 	 	 
	Mellon Investor Services LLC,

as Rights Agent	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 	 	 
	[Title]	 	 

D-3

 

Form of Reverse Side of Class B Right Certificate

FORM OF ASSIGNMENT

(To be executed by the registered holder if such

holder desires to transfer the Class B Right Certificate)

     FOR VALUE RECEIVED                                          hereby sells,
assigns and transfers unto                                                                      

      

(Please print name and address of transferee)

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

	 	 	 	 	 
	Dated:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	Signature	 	 

Signature Guaranteed:

     Signatures must be guaranteed by a member or participant in the Securities Transfer Agent
Medallion Program, the New York Stock Exchange Medallion Signature Program or the Stock Exchanges
Medallion Program.

	 	 	 
	 

(To be completed)

	 	  

     The undersigned hereby certifies that the Class B Rights evidenced by this Class B Right
Certificate are not Beneficially Owned by, were not acquired by the undersigned from, and are not
being assigned to an Acquiring Person or an Affiliate or Associate thereof (as defined in the
Rights Agreement).

	 	 	 
	 

Signature

	 	  

D-4

 

Form of Reverse Side of Class B Right Certificate — continued

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires to exercise

Class B Rights represented by the Class B Right Certificate)

To HUBBELL INCORPORATED:

     The undersigned hereby irrevocably elects to exercise                      Class B Rights represented by
this Class B Right Certificate to purchase the shares of Series B Preferred Stock (or other
securities or property) issuable upon the exercise of such Class B Rights and requests that
certificates for such shares of Series B Preferred Stock (or such other securities) be issued in
the name of:

 

(Please print name and address)

 

If such number of Class B Rights shall not be all the Class B Rights evidenced by this Class B
Right Certificate, a new Class B Right Certificate for the balance remaining of such Class B 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 must conform to holder specified on Class B Right Certificate)

Signature Guaranteed:

     Signatures must be guaranteed by a member or participant in the Securities Transfer Agent
Medallion Program, the New York Stock Exchange Medallion Signature Program or the Stock Exchanges
Medallion Program.

D-5

 

Form of Reverse Side of Class B Right Certificate — continued

 

(To be completed)

     The undersigned hereby certifies that the Class B Rights evidenced by this Class B Right
Certificate are not Beneficially Owned by, and were not acquired by the undersigned from, an
Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement).

	 	 	 
	 

Signature

	 	  

 

NOTICE

     The signature in the Form of Assignment or Form of Election to Purchase, as the case may be,
must conform to the name as written upon the face of this Class B 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 will deem the beneficial
owner of the Class B Rights evidenced by this Class B Rights Certificate to be an Acquiring Person
or an Affiliate or Associate thereof and such Assignment or Election to Purchase will not be
honored.

D-6

 

Exhibit E

UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT,
RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN
ACQUIRING PERSON (AS DEFINED IN THE RIGHTS AGREEMENT) AND CERTAIN
TRANSFEREES THEREOF WILL BECOME NULL AND VOID AND WILL NO LONGER BE
TRANSFERABLE.

SUMMARY OF RIGHTS TO PURCHASE

SHARES OF PREFERRED STOCK OF

HUBBELL INCORPORATED

     On December 9, 1998, the Board of Directors of Hubbell Incorporated (the “Company”) (a)
declared a dividend of one preferred share purchase right (a “Class A Right”) for each outstanding
share of Class A common stock, par value $0.01 per share, of the Company (the “Class A Common
Stock”) and declared a dividend of one preferred share purchase right (a “Class B Right” and,
collectively with Class A Rights, a “Right”) for each outstanding share of Class B common stock,
par value $0.01 per share, of the Company (the “Class B Common Stock” and, collectively with the
Class A Common Stock, the “Common Stock”). The dividend was payable on December 21, 1998 (the
“Record Date”) to the stockholders of record on that date. Each Class A Right entitles the
registered holder to purchase from the Company one one-thousandth of a share of Series A Junior
Participating Preferred Stock, without par value, of the Company (the “Series A Preferred Stock”)
at a price of $175.00 per one one-thousandth of a share of Series A Preferred Stock (the “Series A
Purchase Price”), and each Class B Right entitles the registered holder to purchase from the
Company one one-thousandth of a share of Series B Junior Participating Preferred Stock, without par
value, of the Company (the “Series B Preferred Stock” and, collectively with the Series A Preferred
Stock, the “Preferred Stock”) at a price of $175.00 per one one-thousandth of a share of Series B
Preferred Stock (the “Series B Purchase Price” and, collectively with the Series A Purchase Price,
the “Purchase Price”), subject to adjustment. The description and terms of the Rights are set forth
in an Amended and Restated Rights Agreement dated as of December 17, 2008, as the same may be
amended from time to time (the “Rights Agreement”), between the Company and Mellon Investor
Services LLC, as Rights Agent (the “Rights Agent”).

     Until the earlier to occur of (i) 10 days following a public announcement that a person or
group of affiliated or associated persons has acquired, or obtained the right to acquire,
beneficial ownership of 20% or more of the outstanding shares of Class A Common Stock (with certain
exceptions, an “Acquiring Person”) and (ii) 10 business days (or such later date as may be
determined by action of the Board of Directors prior to such time as any person or group of
affiliated persons becomes an Acquiring Person) following the commencement of, or announcement of
an intention to make, a tender offer (other than a “permitted tender offer” (as such term is
described below)) or exchange offer the consummation of which would result in the beneficial
ownership by a person or group of 20% or more of the outstanding shares of Class A Common Stock
(the earlier of (i) and (ii) being called the “Distribution Date”), the Rights will be

E-1

 

evidenced, with respect to any of the Common Stock certificates outstanding as of the Record Date,
by such Common Stock certificate together with a copy of this Summary of Rights.

     Initially, the Roche Trust and the Hubbell Trust (collectively, the “Trusts”) will not be
deemed Acquiring Persons even if either Trust or both Trusts own over 20% of the Class A Common
Stock. This “grandfathering” protection would be extended to purchases by either Trust from the
other Trust of any or all shares held by the other Trust as of December 17, 2008. If either Trust
purchases Common Stock from a person other than the other Trust, the Trust purchasing such shares
will lose its “grandfathering” protection and would be treated like any other person. The Trust
which did not purchase shares from a person other than the other Trust may continue to purchase
shares from the Trust that did purchase shares from such other person; provided that the shares
purchased from the selling Trust do not exceed the number of shares held by such Trust as of
December 17, 2008.

     A person or group of affiliated persons will be deemed to make a “permitted tender offer” if
such person or group of affiliated persons makes a fully financed, all-cash tender offer for all
outstanding shares of both Class A Common Stock and Class B Common Stock at the same price per
share for each class that is accepted, or is conditioned upon the acceptance, by holders of at
least two-thirds of each of the Class A Common Stock and Class B Common Stock (other than those
shares held by the person making the tender offer).

     The Rights Agreement provides that, until the Distribution Date (or earlier redemption,
exchange, termination or expiration of the Rights), the Rights will be transferred with and only
with the Common Stock. Until the Distribution Date (or earlier redemption, exchange, termination or
expiration of the Rights), new Common Stock certificates issued after the close of business on the
Record Date upon transfer or new issuances of Common Stock will contain a notation incorporating
the Rights Agreement by reference. Until the Distribution Date (or earlier redemption, exchange,
termination or expiration of the Rights), the surrender for transfer of any certificates for shares
of Common Stock outstanding as of the Record Date, with or without such notation or a copy of this
Summary of Rights, will also constitute the transfer of the Rights associated with the shares of
Common Stock represented by such certificate. As soon as practicable following the Distribution
Date, separate certificates evidencing the Class A Rights (“Class A Right Certificates”) and Class
B Rights (“Class B Right Certificates” and, collectively with Class A Right Certificates, “Right
Certificates”) will be mailed to holders of record of the Common Stock 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 December
31, 2018 (the “Final Expiration Date”), unless the Final Expiration Date is advanced or extended or
unless the Rights are earlier redeemed or exchanged by the Company.

     The Purchase Price payable, and the number of shares of Preferred Stock or other securities or
property issuable, upon exercise of the Rights is 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 Stock, (ii) upon the grant to holders of the Preferred Stock of
certain rights or warrants to subscribe for or purchase Preferred Stock at a price, or securities

E-2

 

convertible into Preferred Stock with a conversion price, less than the then-current market
price of the Preferred Stock or (iii) upon the distribution to holders of the Preferred Stock of
evidences of indebtedness or assets (excluding regular periodic cash dividends or dividends payable
in Preferred Stock) or of subscription rights or warrants (other than those referred to above).

     The number of outstanding Rights is subject to adjustment in the event of a stock dividend on
the Common Stock payable in shares of Common Stock or subdivisions, consolidations or combinations
of the Common Stock occurring, in any such case, prior to the Distribution Date.

     Shares of Preferred Stock purchasable upon exercise of the Rights will not be redeemable. Each
share of Preferred Stock will be entitled, when, as and if declared, to a minimum preferential
quarterly dividend payment of $10 per share but will be entitled to an aggregate dividend of 1000
times the dividend declared per share of Common Stock. In the event of liquidation, dissolution or
winding up of the Company, the holders of the Preferred Stock will be entitled to a minimum
preferential payment of $100 per share (plus any accrued but unpaid
dividends) but will be entitled to an aggregate payment of 1000 times the payment made per share of
Common Stock. Each share of Series A Preferred Stock will have 20,000 votes and each share of
Series B Preferred Stock will have 1000 votes, voting together with the Common Stock. Finally, in
the event of any merger, consolidation or other transaction in which outstanding shares of Common
Stock are converted or exchanged, each share of Preferred Stock will be entitled to receive 1000
times the amount received per share of Class A Common Stock or Class B Common Stock. These rights
are protected by customary antidilution provisions.

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

     In the event that any person or group of affiliated or associated persons becomes an Acquiring
Person, each holder of a Right, other than Rights beneficially owned by the Acquiring Person (which
will thereupon become void), will thereafter have the right to receive upon exercise of a Right
that number of shares of Common Stock having a market value of two times the exercise price of the
Right.

     In the event that, after a person or group has become an Acquiring Person, the Company is
acquired in a merger or other business combination transaction or 50% or more of its consolidated
assets or earning power are sold, proper provisions will be made so that each holder of a Right
(other than Rights beneficially owned by an Acquiring Person or an affiliate or an associate
thereof which will have become null and void) will thereafter have the right to receive upon the
exercise of a Right that number of shares of common stock of the person with whom the Company has
engaged in the foregoing transaction (or its parent) that at the time of such transaction have a
market value of two times the exercise price of the Right.

     At any time after any person or group becomes an Acquiring Person and prior to the earlier of
one of the events described in the previous paragraph or the acquisition by such

E-3

 

Acquiring Person of 50% or more of the outstanding shares of Common Stock, the Board of Directors
of the Company may exchange the Rights (other than Rights owned by such Acquiring Person which will
have become void), in whole or in part, for shares of Class A Common Stock or Class B Common Stock,
as the case may be, or Series A Preferred Stock or Series B Preferred Stock, as the case may be,
(or a series of the Company’s preferred stock having equivalent rights, preferences and
privileges), at an exchange ratio of one share of Class A Common Stock or Class B Common Stock, as
the case may be, or a fractional share of Series A Preferred Stock or Series B Preferred Stock, as
the case may be, (or other preferred stock) equivalent in value thereto, per Class A Right or Class
B Right, as the case may be.

     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 shares of
Preferred Stock or Common Stock will be issued (other than fractions of Preferred Stock which are
integral multiples of one one-thousandth of a share of Preferred Stock, which may, at the election
of the Company, be evidenced by depositary receipts), and in lieu thereof an adjustment in cash
will be made based on the current market price of the Series A Preferred Stock or Series B
Preferred Stock, as the case may be, or the Class A Common Stock or Class B Common Stock, as the
case may be.

     At any time prior to the time an Acquiring Person becomes such, the Board of Directors of the
Company may redeem the Rights in whole, but not in part, at a price of $.01 per Right (the
“Redemption Price”) payable, at the option of the Company, in cash, shares of Common Stock or such
other form of consideration as the Board of Directors of the Company shall determine. 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.

     For so long as the Rights are then redeemable, the Company may, except with respect to the
Redemption Price, amend the Rights Agreement in any manner. After the Rights are no longer
redeemable, the Company may, except with respect to the Redemption Price, amend the Rights
Agreement in any manner that does not adversely affect the interests of holders of the Rights.

     Until a Right is exercised or exchanged, the holder thereof, as such, will have no rights as a
shareholder of the Company beyond those as an existing shareholder, including, without limitation,
the right to vote or to receive dividends.

     A copy of the Rights Agreement is available free of charge from the Company. This summary
description of the Rights does not purport to be complete and is qualified in its entirety by
reference to the Rights Agreement, as the same may be amended from time to time, which is hereby
incorporated herein by reference.

E-4

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