Document:

exv4w1

Exhibit 4.1

Shareholder Protection Rights Agreement

by and between

Post Holdings, Inc.

and

Computershare Trust Company, N.A., rights agent

dated as of ______________________, 20__

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page
	Section 1. Certain Definitions
	 	 	1	 
	 
	 	 	 	 
	Section 2. Appointment of Rights Agent
	 	 	5	 
	 
	 	 	 	 
	Section 3. Issue of Right Certificates
	 	 	6	 
	 
	 	 	 	 
	Section 4. Form of Right Certificates
	 	 	8	 
	 
	 	 	 	 
	Section 5. Countersignature and Registration
	 	 	9	 
	 
	 	 	 	 
	Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated,
Destroyed, Lost or Stolen Right Certificates
	 	 	9	 
	 
	 	 	 	 
	Section 7. Exercise of Rights; Purchase Price; Expiration Date of Rights
	 	 	10	 
	 
	 	 	 	 
	Section 8. Cancellation and Destruction of Right Certificates
	 	 	12	 
	 
	 	 	 	 
	Section 9. Reservation and Availability of Shares of Preferred Stock
	 	 	12	 
	 
	 	 	 	 
	Section 10. Preferred Stock Record Date
	 	 	13	 
	 
	 	 	 	 
	Section 11. Adjustment of Purchase Price, Number of Shares or Number of Rights
	 	 	14	 
	 
	 	 	 	 
	Section 12. Certificate of Adjusted Purchase Price or Number of Shares
	 	 	19	 
	 
	 	 	 	 
	Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power
	 	 	20	 
	 
	 	 	 	 
	Section 14. Fractional Rights and Fractional Shares
	 	 	21	 
	 
	 	 	 	 
	Section 15. Rights of Action
	 	 	23	 
	 
	 	 	 	 
	Section 16. Agreement of Right Holders
	 	 	23	 
	 
	 	 	 	 
	Section 17. Right Certificate Holder Not Deemed a Shareholder
	 	 	24	 
	 
	 	 	 	 
	Section 18. Concerning the Rights Agent
	 	 	24	 
	 
	 	 	 	 
	Section 19. Merger or Consolidation or Change of Name of Rights Agent
	 	 	24	 
	 
	 	 	 	 
	Section 20. Duties of Rights Agent
	 	 	25	 
	 
	 	 	 	 
	Section 21. Change of Rights Agent
	 	 	26	 
	 
	 	 	 	 
	Section 22. Issuance of New Right Certificates
	 	 	27	 
	 
	 	 	 	 
	Section 23. Redemption and Termination
	 	 	27	 
	 
	 	 	 	 
	Section 24. Exchange
	 	 	28	 
	 
	 	 	 	 
	Section 25. Notice of Proposed Actions
	 	 	30	 
	 
	 	 	 	 
	Section 26. Notices
	 	 	31	 
	 
	 	 	 	 
	Section 27. Supplements and Amendments
	 	 	31	 
	 
	 	 	 	 
	Section 28. Successors
	 	 	32	 
	 
	 	 	 	 
	Section 29. Determinations and Actions by the Board, etc.
	 	 	32	 
	 
	 	 	 	 
	Section 30. Benefits of This Agreement
	 	 	32	 
	 
	 	 	 	 
	Section 31. Severability
	 	 	32	 
	 
	 	 	 	 
	Section 32. Governing Law
	 	 	32	 

i

 

	 	 	 	 	 
	 	 	Page
	Section 33. Counterparts
	 	 	32	 
	 
	 	 	 	 
	Section 34. Descriptive Headings
	 	 	33	 
	 
	 	 	 	 
	Section 35. Force Majeure
	 	 	33	 

Table of Exhibits

	 	 	 

	Exhibit A

	 	Form of Right Certificate
	 
	 	 
	Exhibit B

	 	Summary of Preferred Stock Purchase Rights
	 
	 	 
	Exhibit C

	 	Form of Certificate of Designations for Series __ Junior
Participating Cumulative Preferred Stock

ii

 

Shareholder Protection Rights Agreement

     This Shareholder Protection Rights Agreement, dated as of ____________, 20___ (the
“Agreement”) is entered into between Post Holdings, Inc., a Missouri corporation (the
“Company”), and Computershare Trust Company, N.A., as rights agent (the “Rights
Agent,” which term shall include any successor Rights Agent hereunder).

Recitals

     A. On _________, 20__, the Board of Directors of the Company authorized and declared a
dividend distribution of one right (a “Right”) for each share of Common Stock outstanding
at the Close of Business on _____________, 201__ (the “Record Date”), other than shares of
such Common Stock held in the Company’s treasury on such date, and authorized the issuance of one
Right in respect of each share of Common Stock issued between the Record Date (whether originally
issued or issued from the Company’s treasury) and the Distribution Date, each Right representing
the right to purchase one one-ten thousandth of a share of Series __ Junior Participating
Cumulative Preferred Stock of the Company having the rights, powers and preferences set forth in
the form of Certificate of Designations attached hereto as Exhibit C, upon the terms and
subject to the conditions hereinafter set forth.

     B. The Company desires to appoint the Rights Agent to act as provided herein, and the Rights
Agent is willing to so act.

Agreements

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

     Section 1. Certain Definitions.

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

     (a) “Acquiring Person” shall mean any Person who or which, without the Prior Written
Approval of the Company becomes the Beneficial Owner of ___% or more of the outstanding shares of
Common Stock of the Company, but shall not include:

                    (i) the Company, any Subsidiary of the Company, any employee benefit plan or
compensation arrangement of the Company or any Subsidiary of the Company, or any entity holding
securities of the Company to the extent organized, appointed or established by the Company or any
Subsidiary of the Company for or pursuant to the terms of any such employee benefit plan or
compensation arrangement, or

                    (ii) any Person who or which the Board of Directors determines has become a Person who would
otherwise be an “Acquiring Person” inadvertently, without any plan or intention to obtain, change
or influence control of the Company (including (A) because such Person was unaware it beneficially
owned ___% of the Common Stock or (B) such Person was aware of the extent of its Beneficial
Ownership of Common Stock but had no actual knowledge of the consequences of becoming such a
Beneficial Owner under this Agreement), so long as such Person, individually or together with the
Affiliates and Associates of such Person, promptly (in the judgment of the Board of Directors)
divests or promptly (in the judgment of the Board of Directors) enters into, and delivers to the
Company, an irrevocable commitment promptly to divest, and thereafter promptly (in the judgment of
the Board of Directors) divests (without exercising or retaining any power, including voting, with
respect to such securities), sufficient securities of the Company or, in the case solely of
Derivative Common Stock,

1

 

such Person shall (x) terminate the subject derivative transaction or transactions or
otherwise dispose of the subject derivative security or securities and (y) establish to the
satisfaction of the Board of Directors that such Derivative Common Stock is no longer beneficially
owned with any intention of obtaining, changing or influencing the control of the Company, so that
such Person would not otherwise be an “Acquiring Person;” provided, that any such determinations or
judgments by the Board of Directors shall be made in its sole discretion and shall be final and
binding.

                    If any Person may avoid being an “Acquiring Person” by divesting securities or Derivative
Common Stock of the Company as described in the preceding sentence, then such Person shall not be
considered to have become an “Acquiring Person” until the date that the Board of Directors
determines that such divestiture has not occurred as promptly as practicable.

                    Notwithstanding the foregoing, or anything else contained in this Agreement, no Person shall
become an “Acquiring Person” as the result of an acquisition of Common Stock by the Company which,
by reducing the amount of Common Stock outstanding, increases the Beneficial Ownership of Common
Stock by such Person to ___% or more of the outstanding shares of Common Stock; provided, however,
that if a Person becomes the Beneficial Owner of ___% or more of the outstanding shares of Common
Stock by reason of purchases by the Company and shall, after such purchases by the Company, become
the Beneficial Owner of any additional shares of Common Stock representing more than 1.0% of the
Common Stock outstanding, then such Person shall be deemed to be an Acquiring 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 hereof.

     (c) “Articles of Incorporation” shall mean the Restated Articles of Incorporation of
the Company, as amended from time to time.

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

                    (i) which such Person or any of such Person’s Affiliates or Associates beneficially owns,
directly or indirectly as determined pursuant to Rule 13d-3 and 13d-5 of the General Rules and
Regulations under the Exchange Act, as in effect on the date hereof;

                    (ii) which such Person or any of such Person’s Affiliates or Associates has (A) the right to
acquire (whether such right is exercisable immediately or only after the passage of time or
occurrence of conditions) pursuant to any agreement, arrangement or understanding (written or
oral), or upon the exercise of conversion rights, exchange rights, rights (other than these
Rights), warrants or options, or otherwise, provided, however, that a Person shall not be deemed
the “Beneficial Owner” of, or to beneficially own, or to have Beneficial Ownership of, (1)
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
payment or exchange thereunder or cease to be subject to withdrawal by the tendering security
holder, or (2) securities issuable upon exercise of Rights at any time prior to the occurrence of a
Section 11(b) Event or Section 13 Event, or (B) the right to vote or dispose of, including pursuant
to any agreement, arrangement or understanding (written or oral), provided, however, that a Person
shall not be deemed the “Beneficial Owner” of, or to beneficially own, or to have Beneficial
Ownership of, any security under this clause (B) if the agreement, arrangement or understanding
(written or oral) to vote such security (1) arises solely from a revocable proxy or consent given
in response to a public proxy or consent solicitation made generally to all holders of Common Stock
pursuant to, and in accordance

2

 

with, the applicable rules and regulations under the Exchange Act and (2) the Beneficial
Ownership of such security is not also then reportable by such person 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 or any of such
Person’s Affiliates or Associates with which such Person or any of such Person’s Affiliates or
Associates has any agreement, arrangement or understanding (written or oral) for the purpose of
acquiring, holding, voting (except pursuant to a revocable proxy or consent as described in clause
(B) of subparagraph (ii) of this paragraph (d)) or disposing of any securities of the Company; or

                    (iv) which are the subject of, or the reference securities for, or that underlie, any
Derivative Interest of such Person or any of such Person’s Affiliates or Associates, with the
number of securities deemed beneficially owned being the notional or other number of shares of
securities specified in the documentation evidencing the Derivative Interest as being subject to be
acquired upon the exercise or settlement of the Derivative Interest or as the basis upon which the
value or settlement amount of such Derivative Interest is to be calculated in whole or in part or,
if no such number of securities is specified in such documentation, as determined by the Board of
Directors in its sole discretion to be the number of securities to which the Derivative Interest
relates.

                    Notwithstanding the foregoing, nothing contained in this definition shall cause a Person to be
deemed the “Beneficial Owner” of, or to “beneficially own,” or to have “Beneficial Ownership” of,
any securities (A) if the Person is ordinarily engaged in the business as an underwriter of
securities and has acquired such securities in a bona fide firm commitment underwriting pursuant to
an underwriting agreement with the Company until the expiration of 40 days after the date of such
acquisition, (B) if such Person is a “clearing agency” (as defined in Section 3(a)(23) of the
Exchange Act) and has acquired such securities solely as a result of such status, or (C) solely by
virtue of any actions taken by such Person as an officer or director of the Company in such
capacity.

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

     (e) “Board of Directors” shall mean the Board of Directors of the Company as
constituted from time to time.

     (f) “Business Day” shall mean any day other than a Saturday, Sunday, or a day on
which banking institutions in the Commonwealth of Massachusetts are authorized or obligated by
law or executive order to close.

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

     (h) “Common Stock” shall mean the common stock, par value $0.01 per share, of the
Company, except that “Common Stock” when used with reference to any Person other than the Company
shall mean the capital stock with the greatest voting power of such Person or the equity
securities or other equity interest having power to control or direct the management of such
Person or, if such Person is a Subsidiary of another Person,

3

 

of the Person which ultimately controls such first-mentioned Person and which has issued and
outstanding such capital stock, equity securities or equity interests.

     (i) “Common stock equivalent” shall have the meaning set forth in Section 11(c).

     (j) “Current market price” shall have the meaning set forth in Section 11(f).

     (k) “Derivative Common Stock” shall mean shares of Common Stock that are deemed
beneficially owned by an Acquiring Person solely as a result of the application of clause (iv) of
the definition of “Beneficial Owner” and “beneficial ownership”.

     (l) “Derivative Interest” shall mean any derivative securities (as defined in Rule
16a-1 of the General Rules and Regulations under the Exchange Act) that increase in value as the
value of the underlying equity increases, including, but not limited to, a long convertible
security, a long call option and a short put option position, in each case, regardless of whether
(x) such interest conveys any voting rights in such security, (y) such interest is required to
be, or is capable of being, settled through delivery of such security or (z) transactions hedge
the economic effect of such interest; provided that, for the purposes of the definition of
Derivative Interest, the term “derivative security” shall also include any security or instrument
that would not otherwise constitute a “derivative security” as a result of any feature that would
make any conversion, exercise or similar right or privilege of such security or instrument
becoming determinable only at some future date or upon the happening of a future occurrence, in
which case the determination of the amount of securities into which such security or instrument
would be convertible or exercisable shall be made assuming that such security or instrument is
immediately convertible or exercisable at the time of such determination. A derivative interest
shall not include any interest, right, option or security set forth in Rule 16a-1(c)(1)-(5) or
(7) of the General Rules and Regulations under the Exchange Act.

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

     (n) “Equivalent preferred stock” shall have the meaning set forth in Section 11(d).

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

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

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

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

     (s) “Number of Adjustment Shares” shall have the meaning set forth in Section 11(b).

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

     (u) “Preferred Stock” shall mean the Series __ Junior Participating Cumulative
Preferred Stock, par value $0.01 per share, of the Company.

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

4

 

     (w) “Prior Written Approval of the Company” shall mean prior express written consent
of the Company to the actions in question, executed on behalf of the Company by a duly authorized
officer of the Company following express approval by action of at least a majority of the members
of the Board of Directors then in office.

     (x) “Purchase Price” shall have the meaning set forth in Section 4.

     (y) “Record Date” shall have the meaning set forth in the recitals.

     (z) “Registrar” shall have the meaning set forth in Section 5(a).

     (aa) “Right” shall have the meaning set forth in the recitals.

     (bb) “Right Certificate” shall have the meaning set forth in Section 3(a).

     (cc) “Rights Agent” shall have the meaning set forth in the introduction.

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

     (ee) “Section 11(b) Event” shall have the meaning set forth in Section 11(b).

     (ff) “Section 13 Event” shall mean an event described in clauses (x), (y) or (z) of
Section 13(a).

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

     (hh) “Stock Acquisition Date” shall mean the earlier of (i) the first date of public
announcement by the Company or a Person that a Person has become an Acquiring Person, or (ii) the
date on which the Company first has notice, direct or indirect, or otherwise determines that a
Person has become an Acquiring Person; provided, however, that, if such Person is determined not
to have become an Acquiring Person pursuant to Section 1(a), then no Stock Acquisition Date shall
be deemed to have occurred.

     (ii) “Subsidiary” shall mean, with respect to any Person, any other Person of which
voting securities or other ownership interests, in the absence of contingencies, to elect a
majority of the board of directors (or other persons performing similar functions) of such other
Person are at the time directly or indirectly owned by such Person or one or more of such
Person’s Subsidiaries, except that “Subsidiary” when used with reference to the Company shall
mean any Person of which either a majority of the Common Stock or a majority of the voting equity
securities or a majority of the equity interests is owned, directly or indirectly, by the
Company.

     (jj) “Trading Day” shall have the meaning set forth in Section 11(f)(i).

     (kk) “Trading Regulation” shall mean any rule or regulation of any national
securities exchange or quotation system on which the Common Stock or the Rights may from time to
time be listed or traded.

     (ll) “Trust” shall have the meaning set forth in Section 24(f).

     (mm) “Trust Agreement” shall have the meaning set forth in Section 24(f).

     Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as agent for the Company in accordance
with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The
Company may from time to time appoint such Co-Rights Agents as it may deem necessary or desirable,
upon ten (10) days prior written notice to the Rights Agent. The Rights Agent shall have no duty
to

5

 

supervise, and shall in no event 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 Agents and any Co-Rights Agents shall be as the Company shall determine.

          Section 3. Issue of Right Certificates.

          (a) Until the earlier of (i) the Close of Business on the tenth Business Day after the Stock
Acquisition Date or (ii) the Close of Business on the tenth Business Day (or such later date as
may be determined by action of the Board of Directors but in no event later than the tenth
Business Day after such time as any Person becomes an Acquiring Person) after the date that a
tender or exchange offer by any Person (other than the Company, any Subsidiary of the Company,
any employee benefit plan or compensation arrangement of the Company or of any Subsidiary of the
Company, or any entity holding securities of the Company to the extent organized, appointed or
established by the Company or any Subsidiary of the Company for or pursuant to the terms of any
such employee benefit plan or compensation arrangement) is first published or sent or given
within the meaning of Rule 14d-2(a) of the General Rules and Regulations under the Exchange Act,
without the Prior Written Approval of the Company, which tender or exchange offer would result in
any such Person becoming an Acquiring Person (including any such date which is after the date of
this Agreement and prior to the issuance of the Rights) (the earlier of the dates referred to in
clauses (i) or (ii), the “Distribution Date”; provided, that if the foregoing results in
the Distribution Date being prior to the Record Date, the Distribution Date shall be the Record
Date), without giving effect to any restrictions set forth in the Articles of Incorporation, (x)
the Rights will be evidenced (subject to the provisions of paragraph (b) of this Section 3) by
the certificates for the Common Stock registered in the names of the holders of the Common Stock
(which certificates for Common Stock shall be deemed also to be Right Certificates) or, for
Common Stock held in book-entry accounts, through the direct registration service of the
Company’s transfer agent by such book-entry accounts (together with a direct registration
transaction advice or such other notification as the Board of Directors in its discretion may
determine with respect to such shares), and not by separate Right Certificates, as more fully set
forth below, and (y) the Rights (and the right to receive certificates therefor) will be
transferable only in connection with the transfer of the underlying shares of Common Stock, as
more fully set forth below. As soon as practicable after the Company has notified the Rights
Agent of the occurrence of the Distribution Date, the Company shall prepare and execute, and the
Rights Agent shall countersign and (i) send, at the expense of the Company, by first class,
insured, postage prepaid mail, to each record holder of the Common Stock as of the Close of
Business on the Distribution Date, at the address of such holder shown on the records of the
Company, a right certificate, in substantially the form of Exhibit A (the “Right
Certificate”), evidencing one Right for each share of Common Stock so held, subject to
adjustment as provided herein or (ii) credit the book-entry account of such holder with such
Rights and send a direct registration transaction advice or such other notification as the Board
of Directors in its discretion may determine with respect to such Rights to such holder. As of
and after the Distribution Date, the Rights will be evidenced solely by such Right Certificates
or book-entry credits. In the event the Company elects to distribute any Rights by crediting
book-entry accounts, the provisions of this Agreement that reference Right Certificates shall be
interpreted to reflect that the Rights are credits to the book-entry accounts, that separate
Right Certificates are not issued with respect to some or all of the Rights, and that any legend
required on a Right Certificate may be placed on the direct registration transaction advice or
such other notification as the Board of Directors in its discretion may determine with respect to
such Rights. The absence of specific language regarding book-entry accounts and credits in any
provision of this Agreement shall not be interpreted to mean that the foregoing sentence is not
applicable as appropriate to such provision.

6

 

          (b) As soon as practicable after the Record Time, the Company will make a summary of the
terms of the Rights in substantially the form of Exhibit B available to any holder of
Rights who may so request from time to time prior to the Expiration Time. With respect to
certificates for the Common Stock outstanding as of the Record Date, until the Distribution Date
(or the earlier redemption, expiration or termination of the Rights), the Rights will be
evidenced by such certificates for the Common Stock registered in the names of the holders of the
Common Stock and the registered holders of the Common Stock shall also be registered holders of
the associated Rights. With respect to Common Stock held in book-entry accounts outstanding as
of the Record Date, until the Distribution Date (or the earlier redemption, expiration or
termination of the Rights), the Rights will be held in book-entry accounts and represented by the
related transaction advice or such other notification as the Board of Directors in its discretion
may determine and the registered holders of the Common Stock shall also be registered holders of
the associated Rights. Until the Distribution Date (or the earlier redemption, expiration or
termination of the Rights), the surrender for transfer of any of the certificates for the Common
Stock or book-entry accounts holding Common Stock outstanding in respect of which Rights have
been issued shall also constitute the transfer of the Rights associated with the Common Stock
represented by such certificate or held in such book-entry accounts.

          (c) Certificates for the Common Stock issued after the Record Date but prior to the earlier
of the Distribution Date or the redemption, expiration or termination of the Rights shall be
deemed also to be certificates for Rights and shall have impressed, printed or written on or
otherwise affixed to them a legend in substantially the following form:

          This certificate also evidences and entitles the holder hereof to certain
Rights as set forth in the Shareholder Protection Rights Agreement dated as of
_________, 20___ between Post Holdings, Inc., a Missouri corporation (the
“Company”), and Computershare Trust Company, N.A. (the “Rights Agreement”), as it
may from time to time be supplemented or amended, the terms of which are
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 may expire or may be redeemed, exchanged or be
evidenced by separate certificates and no longer be evidenced by this certificate.
The Company will mail to the holder of this certificate a copy of the Rights
Agreement, as in effect on the date of mailing, without charge promptly after
receipt of a written request therefor. Under certain circumstances, Rights issued to
or held by Acquiring Persons or their Affiliates or Associates (as defined in the
Rights Agreement) and any subsequent holder of such Rights may become null and void.

          Each book-entry account for such Common Stock that shall so become outstanding or shall be
transferred or exchanged after the Record Date but prior to the earlier of the Distribution Date or
the redemption, expiration or termination of the Rights shall also be deemed to include the
associated Rights, and the direct registration transaction advice or such other notification as the
Board of Directors in its discretion may determine with respect to such shall bear a legend in
substantially the following form:

          Each security covered by this [advice/ownership statement] also evidences and
entitles the holder hereof to certain Rights as set forth in the Shareholder
Protection Rights Agreement between Post Holdings, Inc., a Missouri corporation (the
“Company”), and Computershare Trust Company, N.A. (the “Rights Agreement”), as it
may from time to time be supplemented or amended, the terms of which are
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

7

 

the Rights Agreement, such Rights may expire or may be redeemed, exchanged or
be evidenced by separate certificates and no longer be evidenced by this [direct
registration transaction advice/ownership statement]. The Company will mail to the
holder hereof a copy of the Rights Agreement, as in effect on the date of mailing,
without charge promptly after receipt of a written request therefor. Under certain
circumstances, Rights issued to or held by Acquiring Persons or their Affiliates or
Associates (as defined in the Rights Agreement) and any subsequent holder of such
Rights may become null and void.

          With respect to such certificates or direct registration transaction advices containing the
foregoing legend, until the Distribution Date (or the earlier redemption, expiration or termination
of the Rights), the Rights associated with the Common Stock represented by such certificates or
held in such book-entry accounts shall be evidenced by such certificates or held in such book-entry
accounts (together with the direct registration transaction advice or such other notification as
the Board of Directors in its discretion may determine with respect to such shares) alone, and the
surrender for transfer of any of such certificates, whether by transfer of physical certificates or
book-entry transfer, except as otherwise provided herein, shall also constitute the transfer of the
Rights associated with the Common Stock represented by such certificates or direct registration
transaction advices.

          In the event that the Company purchases or acquires any Common Stock after the Record Date but
prior to the Distribution Date, any Rights associated with such Common Stock shall be deemed
cancelled and retired so that the Company shall not be entitled to exercise any Rights associated
with shares of Common Stock which are no longer outstanding.

          Notwithstanding this Section or otherwise, 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.

          (a) The Right Certificates (and the forms of election to purchase shares and of assignment
to be printed on the reverse thereof) shall be in substantially the same form as Exhibit
A and may have such marks of identification or designation and such legends, summaries or
endorsements printed thereon as the Company may deem appropriate and as are not inconsistent with
the provisions of this Agreement, or as may be required to comply with any applicable law, rule
or regulation or with any rule or regulation of any stock exchange on which the Rights may from
time to time be listed, or to conform to customary usage. Subject to the provisions of Section 11
and Section 22, the Right Certificates, whenever issued, shall be dated as of the Record Date,
and on their face shall entitle the holders thereof to purchase such number of one one-ten
thousandths of a share of Preferred Stock as shall be set forth therein at the price per one
one-ten thousandth of a share as set forth therein (the “Purchase Price”), but the number
and identity of such shares and the Purchase Price shall be and remain subject to adjustment as
provided herein.

          (b) Any Right Certificate issued pursuant hereto that represents Rights beneficially owned
by (i) an Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a
transferee of an Acquiring Person (or of any such Associate or Affiliate) which becomes a
transferee after the Acquiring Person becomes such, or (iii) a transferee of an Acquiring Person
(or of any such Associate or Affiliate) which becomes a transferee prior to or concurrently with
the Acquiring Person becoming such and which receives such Rights pursuant to either (A) a
transfer (whether or not for consideration) from the Acquiring Person (or any such Associate or
Affiliate) to holders of equity interests in such Acquiring Person (or such Associate or
Affiliate) or to any Person with whom such Acquiring Person (or such Associate or Affiliate) has
any continuing plan, agreement, arrangement or

8

 

understanding regarding either the transferred Rights, shares of Common Stock or the Company
or (B) a transfer which a majority of the Board of Directors has determined to be part of a plan,
agreement, arrangement or understanding which has as a primary purpose or effect the avoidance of
Section 7(e), and any Right Certificate issued pursuant to Section 6, Section 11 or Section 22
upon transfer, exchange, replacement or adjustment of any other Right Certificate referred to in
this sentence, shall contain (to the extent feasible) the following legend, or a legend
substantially to the following effect:

          The Rights represented by this Right Certificate are or were beneficially owned
by a Person who was or became an Acquiring Person or an Affiliate or an Associate of
an Acquiring Person. Accordingly, this Right Certificate and the Rights represented
hereby are void in the circumstances specified in Section 7(e) of the Rights
Agreement.

          The failure to print the foregoing legend on any such Right Certificate or any defect therein
shall not affect in any manner whatsoever the application or interpretation of the provisions of
Section 7(e).

          Section 5. Countersignature and Registration.

          (a) The Right Certificates shall be executed on behalf of the Company by its Chairman of the
Board or the President or a Vice President and by the Secretary or an Assistant Secretary or the
Treasurer or Assistant Treasurer, either manually or by facsimile signature, and shall have
affixed thereto the Company’s seal or a facsimile thereof. The Right Certificates shall be
countersigned manually or by facsimile signature by the Rights Agent or the registrar or
co-registrar for the Common Stock (the “Registrar”) and shall not be valid for any
purpose unless so countersigned. In case any officer of the Company whose manual or facsimile
signature is affixed to the Right Certificates shall cease to be such officer of the Company
before countersignature by the Rights Agent or the Registrar and issuance and delivery by the
Company, such Right Certificates, nevertheless, may be countersigned by the Rights Agent or the
Registrar, issued and delivered 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. 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, the Rights Agent will keep or cause to be kept, at its
stockholder services office or such other office 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, the certificate number of each of the
Right Certificates and the date of each of the Right Certificates.

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

          (a) Subject to the provisions of Sections 4(b), 7(e), 11 and 14, 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 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 shares of Preferred Stock (or other securities, cash or other assets,
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 shall make such request in writing delivered to the Rights Agent,
and shall surrender the Right Certificate or Right Certificates to be transferred, split up,
combined or exchanged, with the forms of

9

 

assignment and certificate contained therein duly executed, at the shareholder services
office of the Rights Agent or such office designated for such purpose. The Right Certificates
are transferable only on the registry books of the Rights Agent. Neither the Rights Agent nor
the Company shall be obligated to take any action whatsoever with respect to the transfer of any
such surrendered Right Certificate until the registered holder shall have (i) properly completed
and signed the certificate contained in the form of assignment on the reverse side of such Right
Certificate, (ii) provided such additional evidence of the identity of the Beneficial Owner (or
former Beneficial Owner) thereof and the Affiliates and Associates of such Beneficial Owner (or
former Beneficial Owner) as the Company or the Rights Agent shall reasonably request and (iii)
paid a sum sufficient to cover any tax or governmental charge that may be imposed in connection
with any transfer, split up, combination or exchange of Right Certificates. 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 Rights holder of a sum sufficient to cover any such tax or governmental charge that may be
imposed in connection with any transfer, split up, combination or exchange of Right Certificates.

          (b) Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to
them of the loss, theft, destruction or mutilation of a Right Certificate, and, in case of loss,
theft or destruction, of indemnity or security 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 owner in lieu of the Right Certificate so lost, stolen, destroyed or
mutilated.

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

          (a) The registered holder of any Right Certificate may exercise the Rights evidenced thereby
(except as otherwise provided herein) in whole or in part at any time after the Distribution Date
upon surrender of the Right Certificate, with the form of election to purchase and the
certificate set forth on the reverse side thereof properly completed and duly executed, to the
Rights Agent at the shareholder services office of the Rights Agent or such office designated for
such purpose, together with payment of the Purchase Price for each one one-ten thousandth of a
share of Preferred Stock as to which the Rights are exercised, at or prior to the Close of
Business on the Expiration Date. The “Expiration Date”, as used in this Agreement, shall
be the earliest of (i) the Final Expiration Date, (ii) the time at which the Rights are redeemed
as provided in Section 23, (iii) the time at which the Rights are exchanged as provided in
Section 24, or (iv) immediately prior to the effective time of a consolidation, merger or
statutory share exchange in which the Common Stock is converted into, or into the right to
receive, another security, cash or other consideration that does not constitute a Section 13
Event. Provided that a Stock Acquisition Date has not occurred prior to such date, the “Final
Expiration Date”, as used in this Agreement, shall be ______, 20___ subject to amendment as
provided herein.

          (b) The Purchase Price for each one one-ten thousandth of a share of Preferred Stock
pursuant to the exercise of a Right shall, as of the date hereof, be $______ and shall be subject
to adjustment from time to time as provided in Sections 11 and 13 and shall be payable in lawful
money of the United States of America in accordance with paragraph (c) below.

          (c) Upon receipt of a Right Certificate, with the form of election to purchase and the
certificate properly completed and duly executed, accompanied by payment of the Purchase Price
for each one one-ten thousandth of a share of Preferred Stock to be purchased and an amount equal
to any applicable tax or

10

 

governmental charge required to be paid by the holder of the Rights pursuant hereto in
accordance with Section 9 by certified check, bank draft or money order payable to the order of
the Company or the Rights Agent, the Rights Agent shall, subject to Section 20(k), thereupon
promptly (i) either (A) requisition from any transfer agent of the shares of Preferred Stock (or
make available, if the Rights Agent is the transfer agent) certificates for the number of shares
(or make entries in the book-entry account system of the transfer agent) of Preferred Stock to be
purchased and the Company hereby irrevocably authorizes any such transfer agent to comply with
all such requests, or (B) if the Company, in its sole discretion, shall have elected to deposit
the shares of Preferred Stock issuable upon exercise of the Rights hereunder into a depositary,
requisition from the depositary agent depositary receipts representing such number of one one-ten
thousandths of a share of Preferred Stock as are to be purchased (in which case certificates for
the shares of Preferred Stock represented by such receipts shall be deposited by the transfer
agent with the depositary agent) and the Company hereby authorizes and directs such depositary
agent to comply with all such requests, (ii) promptly after receipt of such certificates or
depositary receipts (or confirmation or written notice that an entry has been made in the
book-entry account system of the transfer agent) 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, (iii) 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, (iv)
after receipt of any such cash, promptly deliver such cash to or upon the order of the registered
holder of such Right Certificate, (v) when appropriate, requisition from the Company the amount
of cash or securities issuable upon exercise of a Right pursuant to the adjustment provisions of
Section 11 or the exchange provisions of Section 24, and (vi) after receipt of any such cash or
securities, promptly deliver such cash or securities to or upon the order of the registered
holder of such Right Certificate, of any such cash or securities.

          (d) In case the registered holder of any Right Certificate shall exercise less than all the
Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent to the Rights
remaining unexercised shall be prepared, executed and delivered by the Rights Agent to the
registered holder of such Right Certificate or to such holder’s duly authorized assigns, subject
to the provisions of Sections 6 and 14.

          (e) Notwithstanding anything in this Agreement to the contrary, upon the first occurrence of
a Section 11(b) Event or a Section 13 Event, any Rights that are or were at any time on or after
the earlier of the Stock Acquisition Date or the Distribution Date beneficially owned by (i) an
Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a transferee of an
Acquiring Person (or of any such Associate or Affiliate) which becomes a transferee after the
Acquiring Person becomes such, or (iii) a transferee of an Acquiring Person (or of any such
Associate or Affiliate) which becomes a transferee prior to or concurrently with the Acquiring
Person becoming such and which receives such Rights pursuant to either (A) a transfer (whether or
not for consideration) from the Acquiring Person (or any such Associate or Affiliate) to holders
of equity interests in such Acquiring Person (or any such Associate or Affiliate) or to any
Person with whom such Acquiring Person (or such Associate or Affiliate) has any continuing plan,
agreement, arrangement or understanding regarding the transferred Rights, shares of Common Stock
or the Company or (B) a transfer which a majority of the Board of Directors has determined to be
part of a plan, agreement, arrangement or understanding which has as a primary purpose or effect
the avoidance of this Section 7(e), and any subsequent transferees of such Persons, shall be null
and void without any further action, and no holder of such Rights shall have any rights
whatsoever with respect to such Rights, or any Right Certificate which formerly evidenced such
Rights, and neither the Company nor the Rights Agent shall have any obligation whatsoever with
respect to such Rights or any Right Certificate, whether under any provision of this Agreement or
otherwise. The Company shall use all reasonable efforts to ensure that the provisions of this
Section 7(e) and Section 4(b) are

11

 

complied with, but shall have no liability to any holder of Rights or any other Person as a
result of its failure to make any determination under this Section 7(e) or Section 4(b) with
respect to an Acquiring Person or its Affiliates, Associates or transferees hereunder.

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

          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 cancelled form, or, if surrendered to the Rights Agent,
shall be cancelled by it, and no Right Certificates shall be issued in lieu thereof except as
expressly permitted by any of the provisions of this 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 cancelled Right Certificates to the Company, or shall,
at the written request of the Company, destroy such cancelled Right Certificates, and in such case
shall deliver a certificate of destruction thereof to the Company.

          Section 9. Reservation and Availability of Shares of Preferred Stock.

          (a) Subject to the Company’s rights under Section 11(c), 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 or its authorized and issued shares of Preferred Stock held in its treasury, the
number of shares of Preferred Stock that will be sufficient to permit the exercise in full of all
outstanding Rights and, after the occurrence of a Section 11(b) Event or a Section 13 Event,
shall so reserve and keep available a sufficient number of shares of Preferred Stock, Common
Stock and/or other securities which may be required to permit the exercise in full of the Rights
pursuant to this Agreement.

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

          (c) If the Company determines that registration under the Securities Act is required, then
the Company shall use its reasonable best efforts to (i) file, as soon as practicable following
the earliest date after the first occurrence of a Section 11(b) Event on which the consideration
to be delivered by the Company upon exercise of the Rights has been determined in accordance with
Section 11(b) and Section 11(c), a registration statement under the Securities Act, with respect
to the securities purchasable upon exercise of the Rights on an appropriate form, (ii) cause such
registration statement to become effective as soon as practicable after such filing, and (iii)
cause such registration statement to remain effective (with a prospectus at all times meeting the
requirements of the Securities Act) until the earlier of (1) the Expiration Date or (2) the date
as of which the Rights are no longer exercisable for such securities. The Company will also take
such action as may be appropriate under the “blue sky laws” of the various states. The Company
may temporarily suspend, for a period of time not to exceed ninety (90) days after the date set
forth in clause (i) of the first sentence of this

12

 

Section 9(b), the exercisability of the Rights in order to prepare and file such
registration statement and permit it to become effective. Upon any such suspension, the Company
shall issue a public announcement stating 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. In addition, if the Company determines that a registration statement should be
filed under the Securities Act or any securities laws following the Distribution Date, the
Company may temporarily suspend the exercisability of the Rights in each relevant jurisdiction
until such time as a registration statement has been declared effective and, 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. Notwithstanding any provision of this Agreement to the
contrary, the Rights shall not be exercisable in any jurisdiction if the requisite qualification
in such jurisdiction shall not have been obtained or be obtainable or the exercise thereof shall
not be permitted under applicable law or a registration statement shall not have been declared
effective.

          (d) The Company further covenants and agrees that it will pay when due and payable any and
all federal and state transfer taxes and charges which may be payable in respect of the issuance
or delivery of the Right Certificates or of any shares of Preferred Stock and/or other securities
upon the exercise of Rights. The Company shall not, however, be required to pay any tax or charge
which may be payable in respect of any transfer involved in the transfer or delivery of Right
Certificates (or entry in the book-entry account system of the transfer agent) or the issuance or
delivery of certificates or depositary receipts for Preferred Stock and/or other securities in a
name other than that of the registered holder of the Right Certificate evidencing Rights
surrendered for exercise, nor shall the Company be required to issue or deliver any certificates
(or entry in the book-entry account system of the transfer agent) or depositary receipts for
            shares of Preferred Stock and/or other securities 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
satisfaction that no such tax or charge is due.

          Section 10. Preferred Stock Record Date . Each Person (other than the Company) in whose name any certificate (or entry in the
book-entry account) for shares of Preferred Stock (or other securities) is issued (or in whose name
a book-entry account for such securities is held) upon the exercise of Rights shall for all
purposes be deemed to have become the holder of record of the Preferred Stock (or other securities)
represented thereby on, and such certificate (or, in the case of securities held in book-entry
form, the related direct transaction registration advice) shall be dated, the date upon which the
Right Certificate evidencing such Rights was duly surrendered (or the transfer of the book-entry
accounts effected) and payment of the Purchase Price (and any applicable taxes and charges) was
made; provided, however, that if the date of such surrender (or transfer in book-entry form) and
payment is a date upon which the Preferred Stock (or other securities) 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 (or, in the case of securities held in book-entry form, the related direct
registration transaction advice or such other notification as the Board of Directors in its
discretion may determine) shall be dated, the next succeeding Business Day on which the Preferred
Stock (or other securities) transfer books of the Company are open. Prior to the exercise of the
Rights evidenced thereby, the holder of a Right Certificate (or book-entry account) shall not be
entitled to any rights of a shareholder of the Company with respect to shares for which the Rights
shall be exercisable, including, without limitation, the right to vote, to receive dividends or
other distributions or to exercise any preemptive rights, and shall not be entitled to receive any
notice of any proceedings of the Company, except as provided herein.

13

 

          Section 11. Adjustment of Purchase Price, Number of Shares or Number of Rights. The Purchase Price, the number and identity of shares covered by each Right and the number
of Rights outstanding are subject to adjustment from time to time as provided in this Section 11.

          (a) In the event the Company shall at any time after the date of this Agreement (i) declare
a dividend on the Preferred Stock payable in shares of Preferred Stock, (ii) subdivide the
outstanding Preferred Stock, (iii) combine the outstanding Preferred Stock into a smaller number
of shares or (iv) 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, the Purchase Price in effect at the time of the record date for such dividend or the
time of the effective date of such subdivision, combination or reclassification, and the number
and kind of shares of capital stock, including Preferred Stock, issuable upon exercise of a
Right, shall be proportionately adjusted so that the holder of any Right exercised after such
time, upon payment of the aggregate consideration such holder would have had to pay to exercise
such Right prior to such time, shall be entitled to receive the aggregate number and kind of
shares of capital stock, including Preferred 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, such holder would have owned upon such exercise and been entitled to receive
by virtue of such dividend, subdivision, combination or reclassification.

          (b) In the event any Person becomes an Acquiring Person (“Section 11(b) Event”),
then proper provision shall be made so that each holder of a Right, subject to Section 7(e) and
Section 24 hereof and except as provided below, shall after the later of the occurrence of such
event and the effective date of an appropriate registration statement pursuant to Section 9, have
a right to receive, upon exercise thereof at the then current Purchase Price multiplied by the
then number of one one-ten thousandths of a share of Preferred Stock for which a Right is then
exercisable in accordance with the terms of this Agreement, in lieu of shares of Preferred Stock,
such number of shares of Common Stock of the Company as shall equal the result obtained by (y)
multiplying the then current Purchase Price by the then number of one one-ten thousandths of a
share of Preferred Stock for which a Right is then exercisable and dividing that product by (z)
50% of the current market price per one share of Common Stock (determined pursuant to Section
11(f) on the date of the occurrence of the Section 11(b) Event) (such number of shares being
referred to as the “Number of Adjustment Shares”).

          (c) In the event that there shall not be sufficient treasury shares or authorized but
unissued shares of Common Stock to permit the exercise in full of the Rights in accordance with
the foregoing Section 11(b), and the Rights become so exercisable, notwithstanding any other
provision of this Agreement, to the extent necessary and permitted by applicable law and any
agreements in effect on the date hereof to which the Company is a party, each Right shall
thereafter represent the right to receive, upon exercise thereof at the then current Purchase
Price, multiplied by the then number of one one-ten thousandths of a share of Preferred Stock for
which a Right is then exercisable, in accordance with the terms of this Agreement, a number of
shares, or units of shares, of (y) Common Stock, and (z) preferred stock (or other equity
securities) of the Company, including, but not limited to, Preferred Stock, equal in the
aggregate to the Number of Adjustment Shares where the Board of Directors shall have in good
faith deemed such shares or units, other than the shares of Common Stock, to have at least the
same value and voting rights as the Common Stock (a “common stock equivalent”); provided,
however, if there are unavailable sufficient shares (or fractions of shares) of Common Stock
and/or common stock equivalents, then the Company shall take all such action as may be necessary
to authorize additional shares of Common Stock or common stock equivalents for issuance upon
exercise of the Rights, including the calling of a meeting of shareholders; and provided,
further, that if the Company is unable to cause sufficient shares of Common Stock and/or common
stock equivalents to be available for issuance upon

14

 

exercise in full of the Rights, then the Company, to the extent necessary and permitted by
applicable law and any agreements or instruments in effect on the date thereof to which it is a
party, shall make provision to pay an amount in cash or other consideration (including, without
limitation, debt securities or assets or a combination of any of the foregoing) equal to twice
the Purchase Price (as adjusted pursuant to this Section 11), in lieu of issuing shares of Common
Stock and/or common stock equivalents. To the extent that the Company determines that some action
needs to be taken pursuant to this Section 11(c), the Board of Directors by action of at least a
majority of its members then in office may suspend the exercisability of the Rights for a period
of up to sixty (60) days following the date on which the Section 11(b) Event shall have occurred,
in order to decide the appropriate form of distribution to be made pursuant to this Section 11(c)
and to determine the value thereof. In the event of any such suspension, the Company shall issue
a public announcement stating that the exercisability of the Rights has been temporarily
suspended. The Board of Directors may, but shall not be required to, establish procedures to
allocate the right to receive Common Stock and common stock equivalents upon exercise of the
Rights among holders of Rights, which such allocation may be, but is not required to be,
pro-rata.

     (d) If the Company shall fix a record date for the issuance of rights (other than any Rights
hereunder) or warrants to all holders of Preferred Stock entitling them (for a period expiring
within 90 calendar days after such record date) to subscribe for or purchase Preferred Stock (or
securities having the same or more favorable rights, privileges and preferences as the Preferred
Stock (“equivalent preferred stock”)) or securities convertible into Preferred Stock or
equivalent preferred stock, at a price per share of Preferred Stock or per share of equivalent
preferred stock or having a conversion or exercise price per share, as the case may be, less than
the current market price per share of Preferred Stock (as determined pursuant to Section 11(f))
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 date by a
fraction, the numerator of which shall be the number of shares of Preferred Stock outstanding on
such record date plus the number of shares of Preferred Stock which the aggregate offering price
of the total number of shares of Preferred Stock or equivalent preferred stock 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 outstanding on such record date plus the number of additional shares of
Preferred Stock and/or equivalent preferred stock to be offered for subscription or purchase (or
into which the convertible securities so to be offered are initially convertible). 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 a majority of
the Board of Directors, whose determination shall be described in a statement filed with the
Rights Agent and shall be conclusive for all purposes. Shares of Preferred Stock owned by or held
for the account of the Company shall not be deemed outstanding for the purpose of any such
computation. Such adjustment shall be made successively whenever such a record date is fixed; and
in the event that such rights 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.

     (e) If the Company shall fix a record date for the making of a distribution to all holders
of Preferred Stock (including any such distribution made in connection with a consolidation or
merger in which the Company is the continuing or surviving corporation) of evidences of
indebtedness, cash (other than a regular periodic cash dividend out of earnings or retained
earnings of the Company), assets (other than a dividend payable in Preferred Stock, but including
any dividend payable in stock other than Preferred Stock) or convertible securities, subscription
rights or warrants (excluding those referred to in Section 11(d)), the Purchase Price to be in
effect after such record date shall be determined by multiplying the Purchase Price in effect
immediately

15

 

prior to such record date by a fraction, the numerator of which shall be the current market
price for one share of Preferred Stock (as determined pursuant to Section 11(f)) on such record
date less the fair market value (as determined in good faith by a majority of the Board of
Directors, whose determination shall be described in a statement filed with the Rights Agent and
shall be conclusive for all purposes) of the portion of the assets or evidences of indebtedness
so to be distributed or of such convertible securities, subscription rights or warrants
applicable to one share of Preferred Stock, and the denominator of which shall be such current
market price for one share of Preferred Stock (as determined pursuant to Section 11(f)). 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.

     (f) (i) For the purpose of any computation hereunder, the “current market price” of any
security (a “Security” for purposes of this Section 11(f)(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 immediately prior to, but not including, such date; provided, however, that in the event
that the current market price per share of such 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 shares of such
Security 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 market price shall be appropriately adjusted by the Board of
Directors 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 in the principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on the New York Stock Exchange or, if the Security is not listed or
admitted to trading on the New York Stock Exchange, as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to trading 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, or, if on any such date the Security is not so quoted and if such bid
and asked prices are not available, the average of the closing bid and asked prices as furnished
by a professional market maker making a market in the Security selected by a majority of the
Board of Directors. If on any such date no market maker is making a market in the Security, the
fair value of such Security on such date as determined in good faith by a majority of the Board
of Directors shall be used, which determination shall be described in a statement filed with the
Rights Agent and shall be conclusive for all purposes. 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 market price” shall mean the fair value as determined in
good faith by a majority of the Board of Directors, which determination shall be described in a
statement filed with the Rights Agent and conclusive for all purposes or, if at the time of such
determination there is an Acquiring Person, by a nationally recognized investment banking firm
selected by the Board of Directors, 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 conclusive for all purposes.

16

 

               (ii) For the purpose of any computation hereunder, the “current market price” per share (or
one one-ten thousandth of a share) of Preferred Stock shall be determined in the same manner as set
forth above for the Common Stock in clause (i) of this Section 11(f) (other than the last sentence
thereof). If the current market price per share (or one one-ten thousandth of a share) of
Preferred Stock cannot be determined in the manner provided above or if the Preferred Stock is not
publicly held or listed or traded in a manner described in clause (i) of this Section 11(f), the
“current market price” per share of Preferred Stock shall be conclusively deemed to be an amount
equal to 10,000 (as such number may be appropriately adjusted for such events as stock splits,
stock dividends and recapitalizations with respect to the Common Stock occurring after the date of
this Agreement) multiplied by the current market price per share of the Common Stock and the
“current market price” per one one-ten thousandth of a share of Preferred Stock shall be equal to
the current market price per share of the Common Stock (as appropriately adjusted). If neither the
Common Stock nor the Preferred Stock is publicly held or so listed or traded, “current market
price” per share shall mean the fair value per share as determined in good faith by the Board of
Directors, which determination shall be described in a statement filed with the Rights Agent and
conclusive for all purposes, or, if at the time of such determination there is an Acquiring Person,
by a nationally recognized investment banking firm selected by the Board of Directors, 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 conclusive for all purposes.

     (g) Anything herein to the contrary notwithstanding, no adjustment in the Purchase Price
shall be required unless such adjustment would require an increase or decrease of at least 1% in
the Purchase Price; provided, however, that any adjustments which by reason of this Section 11(g)
are not required to be made shall be carried forward and taken into account in any subsequent
adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the
nearest one ten-thousandth of a share, as the case may be. Notwithstanding the first sentence of
this Section 11(g), 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 mandates such adjustment or
(ii) the Expiration Date.

     (h) In the event that at any time, as a result of an adjustment made pursuant to Section
11(a) or (b) hereof, the holder of any Right shall be entitled to receive upon exercise of such
Right any shares of capital stock of the Company other than shares of Preferred Stock, thereafter
the number of such other shares so receivable upon exercise of any Right shall be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the shares of Preferred Stock contained in Section 11(a), (b), (c),
(d), (e), (g), (i), (j), (k), (l), (m), (n) and (o), inclusive, and the provisions of Sections 7,
9, 10, 13 and 14 with respect to the shares of Preferred Stock shall apply on like terms to any
such other shares.

     (i) 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-ten thousandths of a share of Preferred Stock or other capital stock of the
Company purchasable from time to time hereunder upon exercise of the Rights, all subject to
further adjustment of the Purchase Price.

     (j) Unless the Company shall have exercised its election as provided in Section 11(k), upon
each adjustment of the Purchase Price as a result of the calculations made in Section 11(d) and
(e), 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-ten
thousandths of a share of Preferred Stock (calculated to the nearest one ten-thousandth) obtained
by (i) multiplying (A) the number of one one-ten thousandths of a share of Preferred Stock
covered by a Right immediately prior to the adjustment by (B) the

17

 

Purchase Price in effect immediately prior to such adjustment of the Purchase Price and (ii)
dividing the product so obtained by the Purchase Price in effect immediately after such
adjustment of the Purchase Price.

          (k) The Company may elect on or after the date of any adjustment of the Purchase Price to
adjust the number of Rights, in substitution for any adjustment in the number of shares 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-ten
thousandths of a share of Preferred Stock for which such 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 ten-thousandth) obtained by
dividing the Purchase Price in effect immediately prior to adjustment of the Purchase Price by
the Purchase Price in effect immediately after such adjustment. The Company shall make a public
announcement of its election to adjust the number of Rights, indicating the record date for the
adjustment, and, if known at the time, the amount of the adjustment to be made. This record date
may be the date on which the Purchase Price is adjusted or any day thereafter, but, if the Right
Certificates have been issued, shall be at least 10 days later than the date of the public
announcement. If Right Certificates have been issued, upon each adjustment of the number of
Rights pursuant to this Section 11(k), the Company shall, as promptly as practicable, cause to be
distributed to holders of record of Right Certificates on such record date Right Certificates
evidencing, subject to Section 14, 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 the
Right Certificates on the record date specified in the public announcement.

          (l) Irrespective of any adjustment or change in the Purchase Price or the number of shares
of Preferred Stock issuable upon the exercise of the Rights, the Right Certificates theretofore
and thereafter issued may continue to express the Purchase Price and the number of shares which
were expressed in the initial Right Certificates issued hereunder.

          (m) Before taking any action that would cause an adjustment reducing the Purchase Price
below the then par value, if any, of the shares of Common Stock or other securities and below one
one-ten thousandth of the then par value, if any of the Preferred Stock, issuable upon exercise
of the Rights, the Company shall take any corporate action which may, in the opinion of its
counsel, be necessary in order that the Company may validly and legally issue fully paid and
nonassessable shares of such Preferred Stock, Common Stock or other securities at such adjusted
Purchase Price. If upon any exercise of the Rights, a holder is to receive a combination of
Common Stock and common stock equivalents, a portion of the consideration paid upon such
exercise, equal to at least the then par value of a share of Common Stock of the Company, shall
be allocated as the payment for each share of Common Stock of the Company so received.

          (n) In any case in which this Section 11 shall require that an adjustment in the Purchase
Price be made effective as of a record date for a specified event, the Company may elect to defer
until the occurrence of such event the issuing to the holder of any Right exercised after such
record date the shares of Preferred Stock and other capital stock or securities of the Company,
if any, issuable upon such exercise over and above the shares of Preferred Stock and other
capital stock or securities of the Company, if any, issuable upon such exercise on the basis of
the Purchase Price in effect prior to such adjustment; provided, however, that the Company shall

18

 

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.

          (o) Anything in this Section 11 to the contrary notwithstanding, the Company shall be
entitled to make such reductions in the Purchase Price, in addition to those adjustments
expressly required by this Section 11, as and to the extent that in their good faith judgment a
majority of the Board of Directors shall determine to be advisable in order that any (i)
consolidation or subdivision of the Preferred Stock, (ii) issuance wholly for cash of any
Preferred Stock at less than the then current market price, (iii) issuance wholly for cash of
Preferred Stock or securities which by their terms are convertible into or exchangeable for
Preferred Stock, (iv) stock dividends or (v) issuance of rights, options or warrants referred to
hereinabove in this Section 11, hereafter made by the Company to the holders of its Preferred
Stock, shall not be taxable to such shareholders.

          (p) Anything in this Agreement to the contrary notwithstanding, in the event that at any
time after the date of this Agreement and prior to the Distribution Date, the Company shall (i)
declare or pay any dividend on the Common Stock payable in shares of Common Stock or (ii) effect
a subdivision, combination or consolidation of the Common Stock (by reclassification or otherwise
than by payment of dividends in shares of Common Stock) into a greater or lesser number of shares
of Common Stock, then in any such case (y) the number of one one-ten thousandths of a share of
Preferred Stock purchasable after such event upon proper exercise of each Right shall be
determined by multiplying the number of one one-ten thousandths of a share of Preferred Stock so
purchasable immediately prior to such event by a fraction, the numerator of which is the number
of shares of Common Stock outstanding immediately before such event and the denominator of which
is the number of shares of Common Stock outstanding immediately after such event, and (z) each
share of Common Stock outstanding immediately after such event shall have issued with respect to
it that number of Rights which each share of Common Stock outstanding immediately prior to such
event had issued with respect to it.

          The adjustments provided for in this Section 11(p) shall be made successively whenever such a
dividend is declared or paid or such a subdivision, combination or consolidation is effected.

          (q) The Company covenants and agrees that it shall not, at any time after the Distribution
Date and so long as the Rights have not been redeemed pursuant to Section 23 or exchanged
pursuant to Section 24, (i) consolidate with, (ii) merge with or into, or (iii) sell or transfer,
in one or more transactions, assets or earning power aggregating more than 50% of the assets or
earning power of the Company and its Subsidiaries (taken as a whole) to, any other Person, if at
the time of or immediately after such consolidation, merger or sale 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.

          (r) The Company covenants and agrees that, after the Stock Acquisition Date, it will not,
except as permitted by Sections 23 and 24, take any action the purpose or effect of which is to
diminish substantially or otherwise eliminate the benefits intended to be afforded by the Rights;
provided, however, that the issuance of additional Rights pursuant hereto, including without
limitation, by action of the Board of Directors under Section 22, shall not be deemed to violate
this Section 11(r).

          Section 12. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made or any event affecting the Rights or their exercisability
(including without limitation an event which causes any Rights to become null and void) occurs, as
provided in Sections 11 or 13, the Company shall (a) promptly prepare a certificate setting forth
such adjustment, and a brief statement of the facts and computations accounting for such adjustment
or describing such event, (b) promptly file with the Rights Agent and with each transfer agent for
the Preferred Stock and the Common Stock a copy of such certificate and (c) include a brief summary
thereof in a

19

 

mailing to each holder of a Right Certificate in accordance with Section 26, or prior to the
Distribution Date, disclose a brief summary in a filing under the Exchange Act; provided, however,
that the failure to give, or any defect in, any such disclosure shall not affect the legality or
validity of such adjustment. The Rights Agent shall be fully protected in relying on any such
certificate and on any adjustments therein contained.

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

          (a) In the event that, directly or indirectly, at any time after a Person has become an
Acquiring Person, (x) the Company shall consolidate with, or merge with and into, any other
Person, (y) any Person shall consolidate with or merge with and into the Company, and the Company
shall be the continuing or surviving corporation of such consolidation or merger and, in
connection with such consolidation or merger, all or part of the Common Stock shall be changed
into or exchanged for stock or other securities of any other Person (or the Company) or cash or
any other property, or (z) the Company shall sell, or otherwise transfer (or one or more of its
Subsidiaries shall sell or otherwise transfer), in one 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 to the Company or one or more of its
wholly-owned Subsidiaries, then, and in each such case, proper provision shall be made so that
(i) each holder of a Right, subject to Section 7(e), shall thereafter have the right to receive,
upon the exercise thereof at the then current Purchase Price multiplied by the then number of one
one-ten thousandths of a share of Preferred Stock for which a Right is then exercisable (or if a
Section 11(b) Event has occurred prior to the first occurrence of a Section 13 Event, multiplying
the number of such one one-ten thousandths of a share for which a Right was exercisable
immediately prior to the first occurrence of a Section 11(b) Event by the Purchase Price in
effect immediately prior to such first occurrence) in accordance with the terms of this
Agreement, in lieu of Preferred Stock, such number of shares of freely tradable Common Stock of
the Principal Party, free and clear of liens, rights of call or first refusal, encumbrances or
other adverse claims, as shall be equal to the result obtained by (A) multiplying the then
current Purchase Price by the number of one one-ten thousandths of a share of Preferred Stock for
which a Right is then exercisable (or if a Section 11(b) Event has occurred prior to the first
occurrence of a Section 13 Event, multiplying the number of such one one-ten thousandths of a
share for which a Right was exercisable immediately prior to the first occurrence of a Section
11(b) Event by the Purchase Price in effect immediately prior to such first occurrence), and
dividing that product by (B) 50% of the current market price per share of the Common Stock of
such Principal Party (as determined pursuant to Section 11(f)) on the date of consummation of
such consolidation, merger, sale or transfer; (ii) the Principal Party shall thereafter be liable
for, and shall assume, by virtue of such consolidation, merger, sale or transfer, all the
obligations and duties of the Company pursuant to this Agreement; (iii) the term “Company” shall
thereafter be deemed to refer to such Principal Party, it being specifically intended that the
provisions of Section 11, except for the provisions of 11(b), shall apply to such Principal
Party; and (iv) such Principal Party shall take such steps (including, but not limited to, the
authorization and reservation of a sufficient number of shares of its Common Stock to permit
exercise of all outstanding Rights in accordance with this Section 13(a)) in connection with such
consummation as may be necessary to assure that the provisions hereof shall thereafter be
applicable, as nearly as reasonably may be, in relation to the shares of its Common Stock
thereafter deliverable upon the exercise of the Rights.

          (b) “Principal Party” shall mean:

                    (i) in the case of any transaction described in clause (x) or (y) of the first sentence of
Section 13(a) hereof, the Person that is the issuer of any securities into which shares of Common
Stock of the Company are converted in such merger or consolidation, and if no securities are so
issued, the Person, including the Company, that is the other party to the merger or consolidation;
and

20

 

                    (ii) in the case of any transaction described in clause (z) 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; provided, however, that in any case
described in clause (i) or (ii) in this Section 13(b), (x) if the Common Stock of such Person is
not at such time and has not been continuously over the preceding 12-month period registered under
Section 12 of the Exchange Act, and such Person is a direct or indirect Subsidiary or Affiliate of
another Person, “Principal Party” shall refer to such other Person; (y) in case such Person is a
Subsidiary, directly or indirectly, or Affiliate of more than one Person, the Common Stocks of all
of which are and have been so registered, “Principal Party” shall refer to whichever of such
Persons is the issuer of the Common Stock having the greatest aggregate market value, and (z) in
case such Person is, or is owned directly or indirectly by, a partnership or joint venture formed
by two or more Persons that are not owned, directly or indirectly, by the same Person, the rules
set forth in (x) and (y) above shall apply to each of the chains of ownership having an interest in
such joint venture as if such party were a “Subsidiary” of both or all of such joint venturers and
the Principal Parties in each such chain shall bear the obligations set forth in this Section 13 in
the same ratio as their direct or indirect interests in such Person bear to the total of such
interests.

          (c) The Company shall not consummate any such consolidation, merger, sale or transfer unless
(i) the Principal Party shall have a sufficient number of shares of its authorized Common Stock
which have not been issued or reserved for issuance to permit the exercise in full of the Rights
in accordance with this Section 13, (ii) all rights of first refusal or preemptive rights in
respect of the issuance of Common Stock of such Principal Party upon exercise of outstanding
Rights have been waived, (iii) there are no rights, warrants, instruments or securities
outstanding or any plan, agreement, arrangement or transaction which, as a result of the
consummation of such transaction, would eliminate or substantially diminish the benefits intended
to be afforded by the Rights, (iv) such transaction shall not result in a default by such
Principal Party under this Agreement, and (v) prior thereto the Company and each Principal Party
and each other Person who may become a Principal Party as a result of such consolidation, merger,
sale or transfer shall have executed and delivered to the Rights Agent a supplemental agreement
providing for the terms set forth in paragraphs (a) and (b) of this Section 13 and further
providing that, as soon as practicable after the date of any consolidation, merger, sale or
transfer of assets mentioned in paragraph (a) of this Section 13, the Principal Party will:

                    (i) prepare and file a registration statement under the Securities Act with respect to the
Rights and the securities purchasable upon exercise of the Rights on an appropriate form, will use
its best efforts to cause such registration statement to become effective as soon as practicable
after such filing and will 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;

                    (ii) use its best efforts to qualify or register the Rights and the securities purchasable
upon exercise of the Rights under the “blue sky laws” of such jurisdictions as may be necessary or
appropriate; and

                    (iii) deliver to holders of the Rights historical financial statements for the Principal Party
and each of its Affiliates which comply in all respects with the requirements for registration on
Form 10 under the Exchange Act.

          The provisions of this Section 13 shall similarly apply to successive mergers or
consolidations or sales or other transfers. In the event that a Section 13 Event shall occur at any
time after the occurrence of a Section 11(b) Event, the Rights which have not theretofore been
exercised shall thereafter also become exercisable in the manner described in Section 13(a).

          Section 14. Fractional Rights and Fractional Shares.

21

 

          (a) The Company shall not be required to issue fractions of Rights or to distribute Right
Certificates which evidence fractional Rights. In lieu of such fractional Rights, the Company
shall pay or cause to 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 Trading Day shall be the last sale price, regular
way, or, in case no such sale takes place on such day, the average of the closing bid and asked
prices, regular way, in either case as reported in the principal consolidated transaction
reporting system with respect to securities listed or admitted to trading on the New York Stock
Exchange or, if the Rights are not listed or admitted to trading on the New York Stock Exchange,
as reported in the principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on the principal national securities exchange on which the Rights
are listed or admitted to trading or, if the Rights are not listed or admitted to trading on any
national securities exchange, the last quoted price or, not so quoted, the average of the high
bid and low asked prices in the over-the-counter market 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 a majority of the Board
of Directors. If on any such date no such market maker is making a market in the Rights, the
fair value of the Rights on such date as determined in good faith by a majority of the Board of
Directors shall be used and conclusive for all purposes, or, if at the time of such determination
there is an Acquiring Person, by a nationally recognized investment banking firm selected by the
Board of Directors, 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 conclusive for all purposes.

          (b) The Company shall not be required to issue fractions of shares of Preferred Stock (other
than fractions which are integral multiples of one one-ten thousandth of a share of Preferred
Stock) upon exercise of the Rights or to distribute certificates which evidence fractional shares
of Preferred Stock (other than fractions which are integral multiples of one one-ten thousandth
of a share of Preferred Stock). Fractions of shares of Preferred Stock in integral multiples of
one one-ten 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 shares of Preferred Stock represented by such depositary
receipts. In lieu of fractional shares of Preferred Stock that are not integral multiples of one
one-ten thousandth of a share of Preferred Stock, the Company may pay to the registered holders
of Right Certificates at the time such Right Certificates are exercised as herein provided an
amount in cash equal to the same fraction of the current market value of a one one-ten thousandth
of a share of Preferred Stock. For purposes of this Section 14(b), the current market value of
one one-ten thousandth of a share of Preferred Stock shall be one one-ten thousandth of the
closing price of a share of Preferred Stock (as determined pursuant to Section 11(f)(ii)) for the
Trading Day immediately prior to the date of such exercise.

          (c) Following the occurrence of one of the transactions or events specified in Section 11
giving rise to the right to receive common stock equivalents (other than Preferred Stock) or
other securities upon the exercise of a Right, the Company shall not be required to issue
fractions of shares or units of such common stock equivalents or other securities upon exercise
of the Rights or to distribute certificates which evidence fractional shares of such common stock
equivalents or other securities. In lieu of fractional shares or units of such common stock
equivalents or other securities, the Company may pay to the registered holders of Right

22

 

Certificates at the time such Rights are exercised as herein provided an amount in cash
equal to the same fraction of the current market value of a share or unit of such common stock
equivalent or other securities. For purposes of this Section 14(c), the current market value
shall be determined in the manner set forth in Section 11(f) for the Trading Day immediately
prior to the date of such exercise and, if such common stock equivalent is not traded, each such
common stock equivalent shall have the value of one one-ten thousandth of a share of Preferred
Stock.

          (d) Except as otherwise expressly provided in this Section 14, the holder of a Right by the
acceptance of the Right expressly waives such holder’s right to receive any fractional Rights or
any fractional share upon exercise of Rights.

          Section 15. Rights of Action. All rights of action in respect of this Agreement, except for rights of action given to the
Rights Agent under Section 18 or Section 20, are vested in the respective registered holders of the
Right Certificates (and, prior to the Distribution Date, the registered holders of 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), may, in such holder’s own
behalf and for such holder’s own benefit, enforce, and may institute and maintain any suit, action
or proceeding against the Company to enforce, or otherwise act in respect of, such holder’s right
to exercise the Rights evidenced by such Right Certificate in the manner provided in such Right
Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the
holders of Rights, it is specifically acknowledged that the holders of Rights would not have an
adequate remedy at law for any breach of this Agreement and will be entitled to specific
performance of the obligations under, and injunctive relief against actual or threatened violations
of, the obligations of any Person subject to this Agreement. Holders of Rights shall be entitled to
recover the reasonable costs and expenses, including attorneys’ fees, incurred by them in any
action to enforce the provisions of 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 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 stockholder services office of the
Rights Agent or such office designated for such purpose, duly endorsed or accompanied by a proper
instrument of transfer and with the appropriate forms and certificates properly completed and
fully executed; and

          (c) subject to Section 6 and Section 7(f), 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) is registered as the absolute owner thereof and of the Rights evidenced
thereby (notwithstanding any notations of ownership or writing on the Right Certificate or the
associated Common Stock certificate or book-entry registration advice 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, neither the Company nor the
Rights Agent shall have any liability to any holder of a Right or other Person as a result of its
inability to perform any of its obligations under this Agreement by reason of any preliminary or
permanent injunction or other order, judgment, decree or ruling (whether interlocutory or final)
issued by a court of competent jurisdiction or by a

23

 

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

          Section 18. Concerning the Rights Agent. The Company agrees to pay to the Rights Agent reasonable compensation for all services
rendered by it hereunder and, from time to time, on demand of the Rights Agent, its reasonable
expenses and counsel fees and other disbursements incurred in the administration and execution of
this Agreement and the exercise and performance of its duties hereunder. The Company also agrees to
indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, or expense,
incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent,
for anything done or omitted by the Rights Agent in connection with the acceptance and
administration of this Agreement, including the costs and expenses of defending against any claim
of liability.

          The Rights Agent shall be protected and shall incur no liability for or in respect of any
action taken, suffered or omitted by it in connection with its administration of this Agreement in
reliance upon any Right Certificate or certificate for Preferred Stock, Common Stock or for other
securities of the Company, instrument of assignment or transfer, power of attorney, endorsement,
affidavit, letter, notice, direction, consent, certificate, statement, or other paper or document
believed by it to be genuine and to be signed, executed and, where necessary, verified or
acknowledged, by the proper Person or Persons.

          Section 19. Merger or Consolidation or Change of Name of Rights Agent. Any Person into which the Rights Agent or any successor Rights Agent may be merged or with
which it may be consolidated, or any Person resulting from any merger or consolidation to which the
Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to the
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
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. 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.

24

 

          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 the duties and obligations imposed by this Agreement upon the
following terms and conditions, by all of which the Company and the holders of Right Certificates,
by their acceptance thereof, shall be bound:

          (a) The Rights Agent may consult with legal counsel (who may be legal counsel for the
Company), and the opinion of such counsel shall be full and complete authorization and protection
to the Rights Agent as to any action taken or omitted by it in good faith and in accordance with
such opinion.

          (b) Whenever in the performance of its duties under this Agreement the Rights Agent shall
deem it necessary or desirable that any fact or matter be proved or established by the Company
prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in
respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by the Chairman of the Board, the Chief Executive Officer,
the President, Chief Financial Officer or any Vice President and by the Treasurer or any
Assistant Treasurer or the Secretary or any Assistant Secretary of the Company and delivered to
the Rights Agent; and such certificate shall be full authorization to the Rights Agent for any
action taken or suffered in good faith by it under the provisions of this Agreement in reliance
upon such certificate.

          (c) The Rights Agent shall be liable hereunder only for its own gross negligence, bad faith
or willful misconduct.

          (d) The Rights Agent shall not be liable for or by reason of any of the statements of fact
or recitals contained in this Agreement or in the Right Certificates (except its countersignature
thereof) or be required to verify the same, but all such statements and recitals are and shall be
deemed to have been made by the Company only.

          (e) The Rights Agent shall not be under any responsibility in respect of the validity of
this Agreement or the execution and delivery hereof (except the due execution hereof by the
Rights Agent) or in respect of the validity or execution of any Right Certificate (except its
countersignature thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Right Certificate; nor shall it be
responsible for any adjustment required under the provisions of Sections 11 or 13 or responsible
for the manner, method or amount of any such adjustment or the ascertaining of the existence of
facts that would require any such adjustment (except with respect to the exercise of Rights
evidenced by Right Certificates after actual notice to the Rights Agent of any such adjustment);
nor shall it by any act hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any shares of Preferred Stock or other securities to be issued
pursuant to this Agreement or any Right Certificate or as to whether any shares of 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

25

 

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 the Chairman of the Board, the Chief Executive
Officer, the President, Chief Financial Officer, any Vice President, the Secretary, any Assistant
Secretary, the Treasurer or any Assistant Treasurer of the Company, and to apply to such officers
for advice or instructions in connection with its duties, and it shall not be liable for any
action taken or suffered to be taken by it in good faith in accordance with instructions of any
such officer.

          (h) The Rights Agent and any shareholder, director, affiliate, officer, employee, agent or
representative 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 the Rights Agent under this Agreement. Nothing herein shall preclude the
Rights Agent from acting in any other capacity for the Company or for any other Person.

          (i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in
it or perform any duty hereunder either itself or by or through its attorneys or agents, and the
Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct
of any such attorneys or agents or for any loss to the Company resulting from any such act,
default, neglect or misconduct, provided that reasonable care was exercised in the selection and
continued employment thereof.

          (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 there shall be reasonable grounds for believing
that repayment of such funds or adequate indemnification against such risk or liability is not
reasonably assured to it.

          (k) If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise
or transfer, the certificate attached to the form of assignment or form of election to purchase,
as the case may be, has either not been completed or indicates an affirmative response to clause
1, clause 2 and/or, in the case of the certificate attached to the form of election to purchase,
clause 3 thereof, the Rights Agent shall not take any further action with respect to such
requested exercise of 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, in the event that
the Rights Agent or one of its Affiliates is not also the transfer agent for the Company, to each
transfer agent of the Common Stock and Preferred Stock by registered or certified mail. In the
event the transfer agency relationship in effect between the Company and the Rights Agent
terminates, the Rights Agent will be deemed to have resigned automatically and be discharged from
its duties under this Agreement as of the effective date of such termination, and the Company shall
be responsible for sending any required notice. 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 Preferred
Stock by registered or certified mail, and to the holders of the Right Certificates by first-class
mail or, prior to the Distribution Date, through any filing made by the Company pursuant to the
Exchange Act. If the Rights Agent shall resign or be removed or shall otherwise become incapable of
acting, the Company shall appoint a successor to the Rights Agent. If the Company shall fail to
make such appointment within a period of 30 days after such removal or after it has been notified
in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent

26

 

or by the holder of a Right Certificate (which holder shall, with such notice, submit such
holder’s Right Certificate for inspection by the Company), then the registered holder of any Right
Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights
Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be
(a) a corporation or other entity organized and doing business under the laws of the United States
or of any state, in good standing, which is authorized under such laws to exercise corporate trust
or stock transfer powers and is subject to supervision or examination by federal or state authority
and which has at the time of its appointment as Rights Agent a combined capital and surplus of at
least $25,000,000, or (b) an affiliate of a corporation or other entity described in clause (a) of
this sentence. After appointment, the successor Rights Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally named as Rights Agent without
further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor
Rights Agent any property at the time held by it hereunder, and execute and deliver any further
assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of
any such appointment the Company shall file notice thereof in writing with the predecessor Rights
Agent and each transfer agent of the Common Stock and Preferred Stock, and mail a notice thereof in
writing to the registered holders of the Right Certificates or, prior to the Distribution Date,
through any filing made by the Company pursuant to the Exchange Act. Failure to give any notice
provided for 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.

          (a) Notwithstanding any of the provisions of this Agreement or of the Rights to the
contrary, the Company may, at its option, issue new Right Certificates evidencing Rights in such
form as may be approved by a majority of the Board of Directors then in office to reflect any
adjustment or change in the Purchase Price and the number or kind or class of shares of stock or
other securities or property purchasable under the Right Certificates made in accordance with the
provisions of this Agreement.

          (b) In addition, in connection with the issuance or sale of Common Stock following the
Distribution Date and prior to the redemption, exchange or expiration of the Rights, the Company
(i) shall with respect to shares of Common Stock so issued or sold pursuant to the exercise of
stock options or under any employee benefit plan or arrangement, or upon the exercise, conversion
or exchange of securities or other rights or options to acquire Common Stock hereinafter issued
by the Company, and (ii) may, in any other case, if deemed necessary or appropriate by the Board
of Directors, issue Right Certificates representing the appropriate number of Rights in
connection with such issuance or sale; provided, however, that (A) no such Right Certificates
shall be issued if, and to the extent that, the Company shall be advised by counsel that such
issuance would create a significant risk of material adverse tax consequences to the Company or
the Person to whom such Right Certificates would be issued, and (B) no Right Certificate shall be
issued if, and to the extent that, appropriate adjustment shall otherwise have been made in lieu
of the issuance thereof.

          Section 23. Redemption and Termination.

          (a) The Board of Directors then in office may, at its option, at any time prior to the
earlier of (i) the Close of Business on the Stock Acquisition Date or (ii) the Close of Business
on the Final Expiration Date, elect to redeem all but not less than all of the then outstanding
Rights at a redemption price of $0.001 per Right, as appropriately adjusted to reflect any stock
split, stock dividend or similar transaction occurring after the date hereof (such redemption
price being hereinafter referred to as the “Redemption Price”). Notwithstanding anything
contained in this Agreement to the contrary, the Rights shall not be exercisable after the first

27

 

occurrence of a Section 11(b) Event until such time as the Company’s right of redemption
hereunder has expired. The redemption of the Rights by the Board of Directors may be made
effective at such time, on such basis, in such form and with such conditions as the Board of
Directors in its sole discretion may establish.

          (b) Immediately upon the action of a majority of the Board of Directors then in office
electing to redeem the Rights, evidence of which shall be promptly filed with the Rights Agent,
or, when appropriate, immediately upon the time or satisfaction of such conditions as the Board
of Directors may have established, and without any further action and without any notice, the
right to exercise the Rights will terminate and the only right thereafter of the holders of
Rights shall be to receive the Redemption Price. The Company shall promptly give public
disclosure of any such redemption; provided, however, that the failure to give, or any defect in,
any such disclosure shall not affect the legality or validity of such redemption. Within 10 days
after the action of the Board of Directors ordering the redemption of the Rights, the Company
shall give notice of such redemption to the holders of the then outstanding Rights by mailing
such notice to all such holders 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 will state
the method by which the payment of the Redemption Price will be made. Amounts payable shall be
rounded down to the nearest one cent.

          (c) Neither the Company nor any of its Affiliates or Associates may redeem, acquire or
purchase for value any Rights at any time in any manner other than that specifically set forth in
this Section 23 or in Section 24 and other than in connection with the purchase of Common Stock
prior to the Distribution Date.

          Section 24. Exchange.

          (a) The Board of Directors may, at its option, at any time after any Person becomes an
Acquiring Person, exchange all or part of the then outstanding and exercisable Rights (which
shall not include Rights that have become null and void pursuant to the provisions of Section
7(e) hereof) for Common Stock at an exchange ratio of one share of Common Stock per Right,
appropriately adjusted to reflect adjustments in the number of Rights pursuant to Section 11 of
this Agreement (such exchange ratio being hereinafter referred to as the “Exchange
Ratio”). Notwithstanding the foregoing, the Board of Directors shall not be empowered to
effect such exchange at any time after any Person (other than the Company, any Subsidiary of the
Company, any employee benefit plan or compensation arrangement of the Company or any such
Subsidiary, or any entity holding securities of the Company to the extent organized, appointed or
established by the Company or any such Subsidiary for or pursuant to the terms of any such
employee benefit plan or compensation arrangement), together with all Affiliates and Associates
of such Person, becomes the Beneficial Owner of 50% or more of the Common Stock then outstanding.

          (b) Immediately upon the action of the Board of Directors ordering the exchange of any
Rights pursuant to subsection (a) of this Section and without any further action and without any
notice, the right to exercise such Rights shall terminate and the only right thereafter of a
holder of such Rights shall be to receive that number of shares of Common Stock equal to the
number of such Rights held by such holder multiplied by the Exchange Ratio. The Company shall
promptly give public notice of any such exchange; provided, however, that the failure to give, or
any defect in, such notice shall not affect the validity of such exchange. The Company shall
promptly mail or cause to be mailed a notice of any such exchange to all of the holders of such
Rights at their last addresses as they appear upon the registry books of the Rights Agent. Any
notice which is mailed in the manner herein provided shall be deemed given, whether or not the
holder receives the notice. Each such

28

 

notice of exchange will state the method by which the exchange 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 shall be effected pro rata based on the number of Rights (other
than Rights which have become void pursuant to the provisions of Section 7(e)) held by each
holder of Rights.

          (c) In any exchange pursuant to this Section 24, the Company, at its option, may substitute
Preferred Stock (or equivalent preferred stock, as such term is defined in Section 11(d) hereof)
for Common Stock exchangeable for Rights, at the initial rate of one one-ten thousandth of a
share of Preferred Stock (or equivalent preferred stock) for each share of Common Stock, as
appropriately adjusted to reflect adjustments in the voting rights of the Preferred Stock
pursuant to the terms thereof, so that the fraction of a share of Preferred Stock delivered in
lieu of each share of Common Stock shall have the same voting rights as one share of Common
Stock.

          (d) In the event that there shall not be sufficient shares of Common Stock or Preferred
Stock (or equivalent preferred stock) issued but not outstanding or authorized but unissued to
permit any exchange of Rights, as contemplated in accordance with this Section 24, the Company
shall either (i) take all such action as may be necessary to authorize additional shares of
Common Stock or Preferred Stock (or equivalent preferred stock) for issuance upon exchange of the
Rights (provided that if such approval is not obtained the Company will take the action specified
in clause (ii) of this sentence), or (ii) take such action as shall be necessary to ensure and
provide, as and when and to the maximum extent permitted by applicable law and without exposing
directors to personal liability in connection therewith (as determined by the Board of Directors)
and any agreements or instruments in effect on the Stock Acquisition Date (and remaining in
effect) to which it is a party, that each Right shall thereafter constitute the right to receive
debt or equity securities or other assets (or a combination thereof) having a fair value equal to
the product of the current market price of a share of Common Stock (as determined pursuant to
Section 11(f)) on the date of the Section 11(b) Event multiplied by the Exchange Ratio in effect
on the date of the Section 11(b) Event, where the fair value of such debt or equity securities or
other assets (or a combination thereof) shall be as determined in good faith by the Board of
Directors after consultation with a nationally recognized investment banking firm.

          (e) The Company shall not be required to issue fractions of Common Stock or to distribute
certificates which evidence fractional shares of Common Stock. 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. For
the purposes of this paragraph (e), the current market value of a whole share of Common Stock
shall be the current market price of a share of Common Stock (as determined pursuant to Section
11(f)) for the Trading Day immediately prior to the date of exchange pursuant to this Section 24.

          (f) Upon or prior to effecting an exchange pursuant to this Section 24, or as promptly as
reasonably practicable thereafter, the Board of Directors of the Company may direct the Company
to enter into a trust agreement in such form and with such terms as the Board of Directors of the
Company shall approve (the “Trust Agreement”). If the Board of Directors so directs, the
Company shall enter into the Trust Agreement and shall issue to the trust created by such
agreement (the “Trust”) all or part (as determined by the Board of Directors) of the
Common Stock, fractional Preferred Stock or other securities, if any, subject to exchange in
accordance with this Section to (x) all holders of outstanding and exercisable Rights subject to
exchange in accordance with Section 24(a), which shall not include Rights that have become void
pursuant to the provisions of Section 7(e), or (y) some portion of such holders (which may
consist of holders who have not taken proper

29

 

steps to certify or otherwise demonstrate to the satisfaction of the Company that the Rights
held by them have not become void pursuant to the provisions of Section 7(e)), and all Persons
entitled to receive such shares or other securities (and any dividends or distributions made
thereon after the date on which such shares or other securities are deposited in the Trust) shall
be entitled to receive such shares or other securities only from the Trust and solely upon
compliance with the relevant terms and provisions of the Trust Agreement. Prior to effecting an
exchange and registering shares of Common Stock (or other such securities) in any Person’s name,
including any nominee or transferee of a Person, the Company may require (or cause the trustee of
the Trust to require), as a condition thereof, that any holder of Rights provide evidence,
including, without limitation, the identity of the Beneficial Owners and their Affiliates and
Associates (or former Beneficial Owners and their Affiliates and Associates) as the Company or
the Rights Agent shall reasonably request in order to determine if such Rights are void. If any
Person shall fail to comply with such request, the Company shall be entitled conclusively to deem
the Rights formerly held by such Person to be void pursuant to Section 7(e) and not transferable
or exercisable or exchangeable in connection herewith. Any shares of Common Stock or other
securities issued at the direction of the Board of Directors in connection herewith shall be
validly issued, fully paid and nonassessable shares of Common Stock or other securities (as the
case may be), and the Company shall be deemed to have received as consideration for such issuance
a benefit having a value that is at least equal to the aggregate par value of the shares so
issued.

          Section 25. Notice of Proposed Actions.

          (a) In case the Company shall propose at any time after the Distribution Date (i) to pay any
dividend payable in stock of any class to the holders of the Preferred Stock or to make any other
distribution to the holders of the Preferred Stock (other than a regular periodic cash dividend
out of earnings or retained earnings of the Company), (ii) to offer to the holders of the
Preferred Stock rights or warrants to subscribe for or to purchase any additional shares of
Preferred Stock or shares of stock of any other class or any other securities, rights or options,
(iii) to effect any reclassification of the Preferred Stock (other than a reclassification
involving only the subdivision of outstanding shares of Preferred Stock), (iv) to effect any
consolidation or merger into or with, or to effect any sale or other transfer (or to permit one
or more of its Subsidiaries to effect any sales or other transfer), in one or more transactions,
of 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a
whole) to, any other Person, (v) to effect the liquidation, dissolution or winding up of the
Company, or (vi) to declare or pay any dividend on the Common 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, in accordance with Section 26, a notice of such proposed
action, which shall specify the record date for the purposes of such stock dividend, distribution
of rights or warrants, or the date on which such reclassification, consolidation, merger, sale,
transfer, liquidation, dissolution, or winding up is to take place and the date of participation
therein by the holders of the Common Stock and/or Preferred Stock, if any such date is to be
fixed. Such notice shall be so given in the case of any action covered by clauses (i) or (ii)
above at least ten 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 ten days prior to
the date of the taking of such proposed action or the date of participation therein by the
holders of Preferred Stock, whichever shall be the earlier. The failure to give notice required
by this Section 25 or any defect therein shall not affect the legality or validity of the action
taken by the Company or the vote upon any such action.

          (b) In case a Section 11(b) Event shall occur, then the Company shall as soon as practicable
thereafter give to each holder of a Right Certificate, in accordance with Section 26, a notice of
the occurrence of such

30

 

event, which shall specify the event and the consequences of the event to holders of Rights
under Section 11(b).

          (c) Failure to give notice required by this Section 25 or any defect therein shall not
affect the legality or validity of the action taken by the Company or the vote on any such
action.

          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 overnight delivery service or first-class mail, postage prepaid, addressed (until another
address is filed in writing with the Rights Agent) as follows:

Post Holdings, Inc.

2503 S. Hanley Road

St. Louis, Missouri 63144

Attention: Secretary

          Subject to the provisions of Section 21, 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 overnight delivery service or first-class mail,
postage prepaid, addressed (until another address is filed in writing with the Company) as follows:

Computershare Trust Company, N.A.

250 Royall Street

Canton, MA 02021

Attention: Client Services

          Notices or demands authorized by this Agreement to be given or made by the Company or the
Rights Agent to the holder of any Right Certificate shall be sufficiently given or made if sent by
first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown
on the registry books of the Company.

          Section 27. Supplements and Amendments.

          (a) The Company may from time to time supplement or amend this Agreement without the
approval of any holders of Right Certificates in any manner which the Company may deem necessary
or desirable, including, without limitation, in order (i) to cure any ambiguity, (ii) to correct
or supplement any provision contained herein which may be defective or inconsistent with any
other provisions herein, (iii) to shorten or lengthen any time period hereunder (including
without limitation to extend the Final Expiration Date), (iv) to increase or decrease the
Purchase Price, or (v) to make any other change.

          (b) Notwithstanding anything set forth in Section 27(a), from and after such time as any
Person becomes an Acquiring Person, the Company may supplement or amend this Agreement to make
any changes which the Company may deem necessary or desirable (i) that shall not materially
adversely affect the interests of the holders of Rights or (ii)(A) in order to cure any
ambiguity; (B) to correct or supplement any provision contained herein that may be inconsistent
with any other provisions herein or otherwise defective, including, without limitation, any
change in order to satisfy any applicable law, rule or regulation, including, without limitation,
any Trading Regulation on any applicable exchange so as to allow trading of the Company’s
securities thereon; or (C) to shorten or lengthen any time period herein; provided, however, that
this Agreement may not be supplemented or amended to lengthen pursuant to clause (ii)(C) of this
subsection, (x)

31

 

the time period relating to the when the Rights may be redeemed at such time as the Rights
are not then redeemable, or (y) any other time period unless such lengthening is for the purpose
of protecting, enhancing or clarifying the rights of, and/or the benefits to, the holders of the
Rights.

          (c) 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 adversely affects the Rights Agent’s own
duties, obligations or immunities under this Agreement shall require the prior 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. Determinations and Actions by the Board, etc. The Board of Directors shall have the exclusive power and authority to administer this
Agreement and to exercise all rights and powers specifically granted to the Board of Directors or
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. All such actions, interpretations, calculations and determinations (including, for
purposes of clause (y) below, all omissions with respect to the foregoing) done or made by the
Board of Directors shall (x) be final, conclusive and binding on the Company, the Rights Agent, the
holders of the Rights and all other parties, and (y) not subject the Board of Directors to any
liability to the holders of the Rights. The Rights Agent shall be entitled to assume that the
Board of Directors acted in good faith and shall be fully protected and incur no liability in
reliance thereon.

          Section 30. 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 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. It is the intent of the parties
hereto to enforce the remainder of the terms, provisions, covenants and restrictions of this
Agreement to the maximum extent permitted by law.

          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 Missouri 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; except that the rights, duties and obligations of the Rights
Agent shall be governed by and construed in accordance with the laws of The Commonwealth of
Massachusetts.

          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. A signature to this Agreement transmitted
electronically shall have the same authority, effect, and enforceability as an original signature.

32

 

          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.

          Section 35. Force Majeure. Notwithstanding anything to the contrary contained herein, the Rights Agent shall not be liable
for any delays or failures in performance resulting from acts beyond its reasonable control
including, without limitation, acts of God, terrorist acts, labor difficulties, war, or civil
unrest.

[The remainder of this page has been left blank intentionally.]

33

 

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

	 	 	 	 	 	 	 	 	 	 	 

	Attest:	 	 	 	Post Holdings, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	Name:

	 	 

	 	 	 	Name:
	 	 

	 	 
	Title:

	 	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Attest:	 	 	 	Computershare Trust Company, N.A.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	Name:

	 	 

	 	 	 	Name:
	 	 

	 	 
	Title:

	 	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 

34

 

Exhibit A

[ Form of Right Certificate]

			
	 	 	 
	Certificate No. R-                    
	 	                    Rights

NOT EXERCISABLE AFTER THE EXPIRATION DATE. AT THE OPTION OF THE COMPANY, THE RIGHTS ARE SUBJECT TO
REDEMPTION AT $0.001 PER RIGHT OR EXCHANGE FOR COMMON STOCK, UNDER THE CIRCUMSTANCES AND ON
THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY
AN ACQUIRING PERSON OR AN ASSOCIATE OR AFFILIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED
IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL
AND VOID.

Right Certificate

Post Holdings, Inc.

     This certifies that                , or registered assigns, is the registered owner of the number of Rights
set forth above, each of which entitles the owner thereof, subject to the terms, provisions and
conditions of the Shareholder Protection Rights Agreement dated as of ____________, 20__ (the
“Rights Agreement”) between Post Holdings, Inc., a Missouri corporation (the “Company”), and
Computershare Trust Company, N.A. (the “Rights Agent”), to purchase from the Company at any time
after the Distribution Date (as such term is defined in the Rights Agreement) and prior to 5:00
p.m. St. Louis, Missouri time on the Expiration Date, as that term is defined in the Rights
Agreement, at the stockholder services office (or such office designated for such purpose) of the
Rights Agent, or its successor as Rights Agent, one one-ten thousandth of a fully paid,
nonassessable share of Series __ Junior Participating Cumulative Preferred Stock, par value $0.01
per share (“Preferred Stock”), of the Company, at a purchase price of $_______ per one one
ten-thousandth share (the “Purchase Price”) upon presentation and surrender of this Right
Certificate with the Form of Election to Purchase duly executed. The number of Rights evidenced by
this Right Certificate (and the number of shares which may be purchased upon exercise of each
Right) and the Purchase Price set forth above, are the number and Purchase Price as of _______,
20__ based on the shares of Preferred Stock of the Company as constituted at such date.

     The Purchase Price and the number of shares of Preferred Stock which may be purchased upon the
exercise of each of the Rights evidenced by this Right Certificate are subject to modification and
adjustment upon the happening of certain events as provided in the Rights Agreement. In certain
circumstances described in the Rights Agreement, the Rights evidenced hereby may entitle the
registered holder thereof to purchase securities of an entity other than the Company or securities
of the Company other than Preferred Stock or assets of the Company, all as provided in the Rights
Agreement.

     This Right Certificate is subject to all of the terms, provisions and conditions of the Rights
Agreement, which terms, provisions and conditions are hereby incorporated herein by reference and
made a part hereof and to which Rights Agreement reference is hereby made for a full description of
the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights
Agent, the Company and the holders of the Right Certificates. Copies of the Rights Agreement are on
file at the Company and the above-mentioned office of the Rights Agent and are also available upon
written request to the Company.

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

A-1

 

     Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate
may be redeemed by the Company at its option at a redemption price of $0.001 per Right on or prior
to the Stock Acquisition Date (as defined in the Rights Agreement). In addition, subject to the
provisions of the Rights Agreement, each Right evidenced by this Certificate may be exchanged by
the Company at its option for one share of Common Stock or one one-ten thousandth of a share of
Preferred Stock per Right (or, in certain cases, other securities or assets of the Company),
subject in each case to adjustment in certain events as provided in the Rights Agreement following
the Stock Acquisition Date and prior to the time an Acquiring Person, as that term is defined in
the Rights Agreement, becomes the Beneficial Owner (as defined in the Rights Agreement) of 50% or
more of the Common Stock of the Company then outstanding.

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

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

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

     WITNESS the facsimile signature of the proper officers of the Company and its corporate seal.

     Dated as of                     , 20                    .

	 	 	 

	Attest:

	 	Post Holdings, Inc.
	 
	 	 
	By:                                                            

	 	By:                                                            
	Name:                                                            

	 	Name:                                                            
	Title:                                                            

	 	Title:                                                            
	 
	 	 
	Countersigned:
	 	 
	 
	 	 
	Computershare Trust Company, N.A., as Rights Agent
	 	 
	 
	 	 
	By:                                                            
	 	 
	Authorized signature
	 	 

A-2

 

[Form of Reverse Side of Right Certificate]

Form of Assignment

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

FOR VALUE RECEIVED               
                    
                    
                    
                    
                           hereby sells, assigns and

transfers unto     
                    
                    
                    
                    
                    
                                    

(Please print name and address of transferee)

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

Dated:                      , 20                    

By:                                                            

Signature

(Signature must conform in all respects to name of holder as specified on the face of this Right
Certificate)

Signature Guaranteed:

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

A-3

 

CERTIFICATE

(To be completed if true)

The undersigned hereby represents, for the benefit of the Company and all holders of Rights and
shares of Common Stock, that the Rights evidenced by this Rights Certificate are not, and, to the
knowledge of the undersigned, have never been, Beneficially Owned by an Acquiring Person or an
Affiliate or Associate thereof (as each such term is defined in the Rights Agreement).

Dated:                      , 20                    

By:                                                            

Signature

(Signature must conform in all respects to name of holder as specified on the face of this Right
Certificate)

NOTICE

In the event the certification set forth above is not completed in connection with a purported
assignment, the Company will deem the Beneficial Owner of the Rights evidenced by the enclosed
Rights Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as each such
term is defined in the Rights Agreement) or a transferee of any of the foregoing and accordingly
will deem the Rights evidenced by such Right Certificate to be null and void and not transferable
or exercisable.

A-4

 

[To be attached to each Rights Certificate]

FORM OF ELECTION TO PURCHASE

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

To Post Holdings, Inc.:

     The undersigned hereby irrevocably elects to exercise Rights represented by this Right
Certificate to purchase the shares of Preferred Stock or such other securities or assets as may
then be issuable upon the exercise of such Rights and requests that certificates for such shares be
issued in the name of:

Name:                    

Address                                        

Social security or taxpayer identification number:                    

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

Name:                    

Address                                        

Social security or taxpayer identification number:                    

Dated:                     , 20                    

By:                    

Signature

(Signature must conform in all respects to name of holder as specified on the face of this Right
Certificate)

Signature Guaranteed:

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

(To be completed if true)

The undersigned hereby represents, for the benefit of the Company and all holders of Rights and
shares of Common Stock, that the Rights evidenced by the attached Rights Certificate are not, and,
to the knowledge of the undersigned, have never been, beneficially owned by an Acquiring Person or
an Affiliate or Associate thereof (as each such term is defined in the Rights Agreement).

Dated:                      , 20                    

By:                                        

Signature

(Signature must conform in all respects to name of holder as specified on the face of this Right
Certificate)

A-5

 

NOTICE

In the event the certification set forth above is not completed in connection with a purported
exercise, the Company will deem the Beneficial Owner of the Rights evidenced by the attached Right
Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as defined in the
Rights Agreement) or a transferee of any of the foregoing and accordingly will deem the Rights
evidenced by such Rights Certificate to be null and void and not transferable or exercisable.

A-6

 

Exhibit B

Summary of Preferred Stock Purchase Rights

     On __________, 20__, the Board of Directors of Post Holdings, Inc. (the “Company”) declared a
dividend distribution of one preferred stock purchase right (a “Right”) for each outstanding share
of Common Stock, par value $0.01 per share, of the Company (the “Common Stock”). The dividend
distribution is payable on ___________, 20__ to the shareholders of record as of the close of
business on that date. Except as set forth below, each Right entitles the registered holder to
purchase from the Company one one-ten thousandth of a share of Series ___ Junior Participating
Cumulative Preferred Stock, par value $0.01 per share, of the Company (the “Preferred Stock”) at a
price of $_______ per one one-ten thousandth of a share of Preferred Stock (the “Purchase Price”),
subject to adjustment. The description and terms of the Rights are set forth in a Shareholder
Protection Rights Agreement (“the Rights Agreement”) between the Company and Computershare Trust
Company, N.A., as Rights Agent (the “Rights Agent”).

     Until the earlier to occur of (i) the close of business on the tenth business day following
the date of public announcement or the date on which the Company first has notice or determines
that a person or group of affiliated or associated persons (other than the Company, any subsidiary
of the Company, any employee benefit plan of the Company) (an “Acquiring Person”) has acquired, or
obtained the right to acquire, __% or more of the Common Stock without the prior express written
consent of the Company executed on behalf of the Company by a duly authorized officer of the
Company following express approval by action of at least a majority of the members of the Board of
Directors then in office (the “Stock Acquisition Date”) or (ii) the close of business on the tenth
business day (or such later date as may be determined by action of the Board of Directors but not
later than the tenth business day after such time as any such person or group becomes an Acquiring
Person) following the commencement of a tender offer or exchange offer, without the prior written
consent of the Company, by a person (other than the Company, any subsidiary of the Company, any
employee benefit plan of the Company) which, upon consummation, would result in such person’s
beneficial ownership of __% or more of the outstanding shares of voting stock of the Company (the
earlier of the dates in clause (i) or (ii) above being called the “Distribution Date”), the Rights
will be evidenced, with respect to any of the Common Stock certificates outstanding as of the
Record Date, by such Common Stock certificates.

     The Rights Agreement provides that, until the Distribution Date (or earlier redemption or
expiration of the Rights), the Rights will be transferred with and only with the Company’s Common
Stock. Until the Distribution Date (or earlier redemption, exchange or expiration of the Rights),
new Common Stock certificates issued after 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 or expiration of the Rights), the surrender for
transfer of any certificates for shares of Common Stock outstanding as of the Record Date, even
without such notation or a copy of this Summary of Rights, will also constitute the transfer of the
Rights associated with the Common Stock represented by such certificate. As soon as practicable
following the Distribution Date, separate certificates evidencing the Rights (“Right Certificates”)
will be mailed to holders of record of the Common Stock as of the close of business on the
Distribution Date and such separate certificates alone will then evidence the Rights.

     The Rights are not exercisable until the Distribution Date. The Rights will expire, if not
previously exercised, on ______________, 20___ (the “Final Expiration Date”), unless the Final
Expiration Date is 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 are subject to adjustment from time to time to
prevent dilution in the case of specified events, including (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

B-1

 

subscribe for or purchase Preferred Stock at a price, or securities 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, cash 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 and the number of one one-ten thousandths of a share of
Preferred Stock issuable upon exercise of each Right are also subject to adjustment in the event of
a stock split of the Common Stock or 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 or fractions thereof purchasable upon exercise of the Rights will
not be redeemable. Each share of Preferred Stock will have a preferential dividend in an amount
equal to the greater of $100 or 10,000 times any dividend declared on each share of Common Stock.
In the event of liquidation, the holders of the Preferred Stock will receive a preferred
liquidation payment per share of equal to $10,000 per share, plus an amount equal to accrued and
unpaid dividends and distributions, whether or not declared. Each share of Preferred Stock will
have 10,000 votes per share, voting together with the Common Stock. In the event of any merger,
consolidation or other transaction in which shares of Common Stock are converted or exchanged, each
share of Preferred Stock will be entitled to receive 10,000 times the amount and type of
consideration received per share of Common Stock. The rights of the Preferred Stock as to
dividends, liquidation and voting, and in the event of mergers and consolidations, are protected by
customary antidilution provisions.

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

     If any person or group (other than the Company, any subsidiary of the Company or any employee
benefit plan of the Company) acquires beneficial ownership of ____% or more of the Common Stock
without the prior written consent of the Board of Directors, each Right, except those held by such
persons, would entitle each holder of a Right to acquire such number of shares of the Common Stock
as shall equal the result obtained by multiplying the then current Purchase Price by the number of
one one-ten thousandths of a share of Preferred Stock for which a Right is then exercisable and
dividing that product by 50% of the then current per-share market price of Common Stock.

     If any person or group (other than the Company, any subsidiary of the Company or any employee
benefit plan of the Company) acquires more than ___% but less than 50% of the outstanding Common
Stock without prior written consent of the Board of Directors, each Right, except those held by
such persons, may be exchanged by the Board of Directors for one share of Common Stock.

     If, after a person has become an Acquiring Person, the Company were acquired in a merger or
other business combination transaction where the Company is not the surviving corporation or where
Common Stock is exchanged or changed or 50% or more of the Company’s assets or earnings power is
sold in one or several transactions, each Right would entitle the holders thereof (except for the
Acquiring Person) upon exercise to receive such number of shares of the acquiring company’s common
stock as shall be equal to the result obtained by multiplying the then current Purchase Price by
the number of one one-ten thousandths of a share of Preferred Stock for which a Right is then
exercisable and dividing that product by 50% of the then current market price per share of the
common stock of the acquiring company on the date of such merger or other business combination
transaction.

B-2

 

     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 will be issued (other than fractions which are integral multiples of one one-ten
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
market price of the Preferred Stock on the last trading day prior to the date of exercise.

     At any time prior to the date 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 $0.001 per Right (the
“Redemption Price”). The redemption of the Rights may be made effective at such time, on such
basis, in such form, and with such conditions as the Board of Directors in its sole discretion may
establish. Immediately upon any redemption of the Rights, the right to exercise the Rights will
terminate and the only right of the holders of Rights will be to receive the Redemption Price.

     The terms of the Rights may be amended by the Board of Directors of the Company without the
consent of the holders of the Rights in any manner which it may deem necessary or desirable;
provided, however, that the after such time as any person becomes an Acquiring Person, the Company
may supplement or amend the Rights Agreement to make such changes (i) that shall not materially
adversely affect the interests of the holders of Rights or (ii)(a) in order to cure any ambiguity;
(b) to correct or supplement any provision contained in the agreement that may be inconsistent with
any other provisions or otherwise defective, or (c) subject to certain exceptions, to shorten or
lengthen any time period therein.

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

     A copy of the Rights Agreement has been filed with the Securities and Exchange Commission as
an Exhibit to a Registration Statement on Form 8-A. 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.

B-3

 

Exhibit C

Form of

Certificate of Designation, Preferences and Rights of

Series __ Junior Participating Cumulative Preferred Stock

of

Post Holdings, Inc.

Pursuant to Section 351.180 of

The General and Business Corporation Law of Missouri

          We,                     , [NAME OF OFFICE], and                     , [NAME OF OFFICE], of Post Holdings, Inc. a corporation organized
and existing under the General and Business Corporation Law of Missouri, in accordance with the
provisions of Section 351.180 thereof, DO HEREBY CERTIFY:

          That pursuant to the authority conferred upon the Board of Directors by the Restated Articles
of Incorporation (the “Restated Articles”), of the Company, the said Board of Directors on
______________, 20___, adopted the following resolution (the “Resolution”) creating a series of
__________________ (______________) shares of Preferred Stock designated as Series __ Junior
Participating Cumulative Preferred Stock, par value $0.01 per share, a copy of which Resolution was
set forth in a certificate of designations that was executed by the Company’s President,
acknowledged and filed with the Office of the Secretary of State, State of Missouri (the
“Certificate of Designation”), setting forth the powers, preferences and relative, participating,
optional and other special rights, and the qualifications, limitations, or restrictions thereof, as
follows:

          Section 1. Designation and Amount.

          The shares of such series shall be designated as the “Series ___ Junior Participating
Cumulative Preferred Stock,” par value $0.01 per share, and the number of shares constituting such
series shall be ____________. Such number of shares may be increased or decreased by resolution of
the Board of Directors; provided, that no decrease shall reduce the number of shares of Series __
Junior Participating Cumulative Preferred Stock to a number less than that of the shares then
outstanding plus the number of shares issuable upon exercise of outstanding rights, options or
warrants or upon conversion of outstanding securities issued by the Company.

          Section 2. Dividends and Distributions.

          (A) Subject to the rights of the holders of any shares of any series of preferred stock of the
Company ranking prior and superior to the Series __ Junior Participating Cumulative Preferred Stock
with respect to dividends, the holders of shares of Series __ Junior Participating Cumulative
Preferred Stock, in preference to the holders of shares of common stock, par value $0.01 of the
Company (the “Common Stock”), and of any other junior stock, shall be entitled to receive, when, as
and if declared by the Board of Directors out of funds legally available for the purpose, quarterly
dividends payable in cash on any regular quarterly dividend payment date as shall be established by
the Board of Directors (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 __ Junior Participating Cumulative Preferred Stock, in an amount
per share (rounded to the nearest cent) equal to the greater of (a) $____ or (b) subject to the
provision for adjustment hereinafter set forth, ________times the aggregate per share amount of all
cash dividends, and ______times the aggregate per share amount (payable in kind) of all non-cash
dividends or other distributions, other than a dividend payable in shares of Common Stock or a
subdivision of the outstanding shares of Common Stock (by reclassification or otherwise), declared
on the Common Stock since the immediately preceding Quarterly Dividend Payment Date or, with
respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or
fraction of a

C-1

 

share of Series ___ Junior Participating Cumulative Preferred Stock. In the event the Company
shall at any time after ____________ 20__ (the “Rights Declaration Date”) declare or pay any
dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or
combination or consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number
of shares of Common Stock, then in each such case the amount to which holders of shares of Series
__ Junior Participating Cumulative Preferred Stock were entitled immediately prior to such event
under clause (b) of the preceding sentence shall be adjusted by multiplying such amount by a
fraction, the numerator of which is the number of shares of Common Stock outstanding immediately
after such event and the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

          (B) The Company shall declare a dividend or distribution on the Series __ Junior Participating
Cumulative Preferred Stock as provided in paragraph (A) of this Section immediately after it
declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of
Common Stock); provided that, in the event no dividend or distribution shall have been declared on
the Common Stock during the period between any Quarterly Dividend Payment Date and the next
subsequent Quarterly Dividend Payment Date, a dividend of $_______ per share on the Series __
Junior Participating Cumulative Preferred Stock shall nevertheless be payable on such subsequent
Quarterly Dividend Payment Date.

          (C) Dividends shall begin to accrue and be cumulative on outstanding shares of Series __
Junior Participating Cumulative Preferred Stock from the Quarterly Dividend Payment Date next
preceding the date of issue of such shares, unless the date of issue of such shares is prior to the
record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares
shall begin to accrue from the date of issue of such shares, or unless the date of issue is a
Quarterly Dividend Payment Date or is a date after the record date for the determination of holders
of shares of Series __ Junior Participating Cumulative 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 __
Junior Participating Cumulative 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, in
accordance with applicable law, fix a record date for the determination of holders of shares of
Series __ Junior Participating Cumulative Preferred Stock entitled to receive payment of a dividend
or distribution declared thereon, which record date shall be not more than such number of days
prior to the date fixed for the payment thereof as may be allowed by applicable law.

          Section 3. Voting Rights.

          The holders of shares of Series E Junior Participating Cumulative Preferred Stock shall have
the following voting rights:

          (A) Each share of Series __ Junior Participating Cumulative Preferred Stock shall entitle the
holder thereof to _______ votes on all matters submitted to a vote of the holder of the Common
Stock. In the event the Company shall at any time after the Rights Declaration Date declare or pay
any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or
combination or consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number
of shares of Common Stock, then in each such case the number of votes to which holders of shares of
Series __ Junior Participating Cumulative Preferred Stock were entitled

C-2

 

immediately prior to such event under the preceding sentence shall be adjusted by multiplying
such amount by a fraction, the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the number of shares of
Common Stock that were outstanding immediately prior to such event.

          (B) Except as otherwise provided herein, in the Company’s Restated Articles of Incorporation,
and except as otherwise provided by law, the holders of shares of Series __ Junior Participating
Cumulative Preferred Stock, the holders of shares of Common Stock, and the holders of shares of any
other capital stock of the Company having general voting rights, shall vote together as one class
on all matters submitted to a vote of shareholders of the Company.

          (C) Except as otherwise set forth herein or in the Company’s Restated Articles of
Incorporation, and except as otherwise provided by law, holders of Series __ Junior Participating
Cumulative Preferred Stock shall have no special voting rights and their consent shall not be
required (except to the extent they are entitled to vote with holders of Common Stock as set forth
herein) for taking any corporate action.

          Section 4. Certain Restrictions.

          (A) Whenever dividends or distributions payable on the Series __ Junior Participating
Cumulative 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 __
Junior Participating Cumulative 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 __ Junior
Participating Cumulative 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 __ Junior Participating Cumulative Preferred Stock, except dividends paid
ratably on the Series __ Junior Participating Cumulative Preferred Stock and all such parity
stock on which dividends are payable or in arrears in proportion to the total amounts to
which the holders of all such shares are then entitled;

               (iii) except as permitted in Section 4(A)(iv) below, redeem or purchase or otherwise
acquire for consideration shares of any stock ranking on a parity (either as to dividends or
upon liquidation, dissolution or winding up) with the Series __ Junior Participating
Cumulative Preferred Stock, provided that the Company may at any time redeem, purchase or
otherwise acquire shares of any such parity stock in exchange for shares of any stock of the
Company ranking junior (either as to dividends or upon dissolution, liquidation or winding
up) to the Series __ Junior Participating Cumulative Preferred Stock; and

               (iv) purchase or otherwise acquire for consideration any shares of Series __ Junior
Participating Cumulative Preferred Stock, or any shares of stock ranking on a parity with
the Series __ Junior Participating Cumulative Preferred Stock, except in accordance with a
purchase offer made in writing or by publication (as determined by the Board of Directors)
to all holders of such shares upon such terms as the Board of Directors, after consideration
of the respective annual dividend rates and other

C-3

 

relative rights and preferences of the respective series and classes, shall determine
in good faith will result in fair and equitable treatment among the respective series or
classes.

          (B) The 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.

          Section 5. Reacquired Shares.

          Any shares of Series __ Junior Participating Cumulative Preferred Stock purchased or otherwise
acquired by the Company in any manner whatsoever shall be retired and canceled promptly after the
acquisition thereof. The Company shall cause all such shares upon their cancellation to be
authorized but unissued shares of Preferred Stock which may be reissued as part of a new series of
Preferred Stock, subject to the conditions and restrictions on issuance set forth herein.

          Section 6. Liquidation, Dissolution or Winding Up.

          (A) Subject to the rights of the holders of any shares of any series of Preferred Stock of the
Company ranking prior and superior to the Series __ Junior Participating Cumulative Preferred Stock
with respect to liquidation, upon any liquidation (voluntary or otherwise), dissolution or winding
up of the Company, 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 __ Junior
Participating Cumulative Preferred Stock unless, prior thereto, the holders of shares of Series __
Junior Participating Cumulative Preferred Stock shall have received $______ per share, plus an
amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared, to
the date of such payment (the “Series __ Liquidation Preference”). Following the payment of the
full amount of the Series __ Liquidation Preference, no additional distributions shall be made to
the holders of shares of Series __ Junior Participating Cumulative Preferred Stock, unless, prior
thereto, the holders of shares of Common Stock shall have received an amount per share (the “Common
Adjustment”) equal to the quotient obtained by dividing (i) the Series __ Liquidation Preference by
(ii) ______ (as appropriately adjusted as set forth in subparagraph C below to reflect such events
as stock dividends, and subdivisions, combinations and consolidations with respect to the Common
Stock) (such number in clause (ii) being referred to as the “Adjustment Number”). Following the
payment of the full amount of the Series __ Liquidation Preference and the Common Adjustment in
respect of all outstanding shares of Series __ Junior Participating Cumulative Preferred Stock and
Common Stock, respectively, holders of Series __ Junior Participating Cumulative Preferred Stock
and holders of shares of Common Stock shall receive their ratable and proportionate share of the
remaining assets to be distributed in the ratio of the Adjustment Number to 1 with respect to such
Series __ Junior Participating Cumulative Preferred Stock and Common Stock, on a per share basis,
respectively.

          (B) In the event there are not sufficient assets available to permit payment in full of the
Series __ Liquidation Preference and the liquidation preferences of all other series of preferred
stock, if any, which rank on a parity with the Series __ Junior Participating Cumulative Preferred
Stock, then such remaining assets shall be distributed ratably to the holders of such parity shares
in proportion to their respective liquidation preferences. In the event there are not sufficient
assets available to permit payment in full of the Common Adjustment, then such remaining assets
shall be distributed ratably to the holders of Common Stock.

          (C) In the event the Company shall at any time after the Rights Declaration Date declare or
pay any dividend on Common Stock payable in shares of Common Stock, or effect a subdivision or
combination or consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a

C-4

 

dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock,
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 Common Stock outstanding immediately after such event and the denominator of which is
the number of shares of Common Stock that were outstanding immediately prior to such event.

          Section 7. Consolidation, Merger, etc.

          In case the Company shall enter into any consolidation, merger, combination or other
transaction in which the shares of Common Stock are exchanged for or changed into other stock or
securities, cash and/or any other property, then in any such case the shares of Series __ Junior
Participating Cumulative Preferred Stock shall at the same time be similarly exchanged or changed
in an amount per share (subject to the provision for adjustment hereinafter set forth) equal to
___________ times the aggregate amount of stock, securities, cash and/or any other property
(payable in kind), as the case may be, into which or for which each share of Common Stock is
changed or exchanged. In the event the Company shall at any time after the Rights Declaration
Date declare or pay any dividend on Common Stock payable in shares of Common Stock, or effect a
subdivision or combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a
greater or lesser number of shares of Common Stock, then in each such case the amount set forth in
the preceding sentence with respect to the exchange or change of shares of Series __ Junior
Participating Cumulative Preferred Stock shall be adjusted by multiplying such amount by a fraction
the numerator of which is the number of shares of Common Stock outstanding immediately after such
event and the denominator of which is the number of shares of Common Stock that are outstanding
immediately prior to such event.

          Section 8. Redemption.

          The shares of Series __ Junior Participating Cumulative Preferred Stock shall not be
redeemable.

          Section 9. Ranking.

          The Series __ Junior Participating Cumulative Preferred Stock shall rank junior to all other
series of the Company’s Preferred Stock as to the payment of dividends and the distribution of
assets, unless the terms of any such series shall provide otherwise.

          Section 10. Fractional Shares.

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

          IN WITNESS WHEREOF, we have executed and subscribed this Certificate and do affirm the
foregoing as true under the penalties of perjury this       th day of        , 20      .

	 	 	 

	 

	 	Post Holdings, Inc.
	 
	 	 
	Attest:

	 	By:              
                   
                   
                   
         
Name:                                                                                

C-5

 

	 	 	 

	By:                                                            

	 	Title:             
                   
                   
                   
          
	Name:                                                            
	 	 
	Title:                                                            
	 	 

C-6exv10w1

 

 

Exhibit 10.1

Tax Allocation Agreement

by and among

Ralcorp Holdings, Inc.,

and

Post Holdings, Inc.

Dated as of __________, 20__

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Section 1. Definition of Terms
	 	 	2	 
	 
	 	 	 	 
	Section 2. Allocation of Tax Liabilities
	 	 	8	 
	 
	 	 	 	 
	2.01 Pre-Distribution/Post-Distribution Taxes
	 	 	8	 
	2.02 Transfer Taxes
	 	 	8	 
	2.03 Transaction Taxes
	 	 	9	 
	2.04 Post Group Attributes
	 	 	10	 
	 
	 	 	 	 
	Section 3. Proration of Taxes
	 	 	10	 
	 
	 	 	 	 
	3.01 General Method of Proration
	 	 	10	 
	3.02 Transaction Treated as Extraordinary Item
	 	 	10	 
	3.03 Other Income Taxes
	 	 	10	 
	 
	 	 	 	 
	Section 4. Preparation and Filing of Tax Returns
	 	 	10	 
	 
	 	 	 	 
	4.01 General
	 	 	10	 
	4.02 Ralcorp’s Responsibility
	 	 	10	 
	4.03 Post’s Responsibility
	 	 	11	 
	4.04 Tax Accounting Practices
	 	 	11	 
	4.05 Consolidated or Combined Tax Returns
	 	 	11	 
	4.06 Right to Review Tax Returns
	 	 	11	 
	4.07 Post Carrybacks, Carryforwards and Claims for Refund
	 	 	11	 
	4.08 Apportionment of Earnings and Profits and Tax Attributes
	 	 	12	 
	 
	 	 	 	 
	Section 5. Tax Payments
	 	 	12	 
	 
	 	 	 	 
	5.01 Payment of Taxes
	 	 	12	 
	5.02 Indemnification Payments
	 	 	12	 
	 
	 	 	 	 
	Section 6. Tax Benefits
	 	 	13	 
	 
	 	 	 	 
	6.01 Tax Benefits
	 	 	13	 
	6.02 Ralcorp and Post Income Tax Deductions in Respect of Certain Equity Awards and Incentive
Compensation
	 	 	13	 
	 
	 	 	 	 
	Section 7. Tax-Free Status
	 	 	14	 
	 
	 	 	 	 
	7.01 Tax Opinions/Rulings and Representation Letters
	 	 	14	 
	7.02 Restrictions on Post
	 	 	14	 
	7.03 Restrictions on Ralcorp
	 	 	15	 
	7.04 Procedures Regarding Opinions and Rulings
	 	 	15	 
	 
	 	 	 	 
	Section 8. Assistance and Cooperation
	 	 	16	 
	 
	 	 	 	 
	8.01 Assistance and Cooperation
	 	 	16	 
	8.02 Income Tax Return Information
	 	 	17	 
	8.03 Reliance by Ralcorp
	 	 	17	 
	8.04 Reliance by Post
	 	 	17	 
	 
	 	 	 	 
	Section 9. Tax Records
	 	 	17	 
	 
	 	 	 	 
	9.01 Retention of Tax Records
	 	 	18	 
	9.02 Access to Tax Records
	 	 	18	 

1

 

	 	 	 	 	 
	 	 	Page	 
	Section 10. Tax Contests
	 	 	18	 
	 
	 	 	 	 
	10.01 Notice
	 	 	18	 
	10.02 Control of Tax Contests
	 	 	18	 
	 
	 	 	 	 
	Section 11. Effective Date; Termination of Prior Intercompany Tax Allocation Agreements
	 	 	19	 
	 
	 	 	 	 
	Section 12. Survival of Obligations
	 	 	20	 
	 
	 	 	 	 
	Section 13. Treatment of Payments; Tax Gross Up
	 	 	20	 
	 
	 	 	 	 
	13.01 Treatment of Tax Indemnity and Tax Benefit Payments
	 	 	20	 
	13.02 Tax Gross Up
	 	 	20	 
	13.03 Interest Under This Agreement
	 	 	20	 
	 
	 	 	 	 
	Section 14. Disagreements
	 	 	20	 
	 
	 	 	 	 
	Section 15. Late Payments
	 	 	20	 
	 
	 	 	 	 
	Section 16. Expenses
	 	 	21	 
	 
	 	 	 	 
	Section 17. General Provisions
	 	 	21	 
	 
	 	 	 	 
	17.01 No Double Recovery
	 	 	21	 
	17.02 Entire Agreement
	 	 	21	 
	17.03 Choice of Law
	 	 	21	 
	17.04 Amendment
	 	 	21	 
	17.05 Waiver
	 	 	21	 
	17.06 Partial Invalidity
	 	 	21	 
	17.07 Execution in Counterparts
	 	 	21	 
	17.08 Successors and Assigns
	 	 	21	 
	17.09 Notices
	 	 	22	 
	17.10 No Reliance on Other Company
	 	 	22	 
	17.11 Performance
	 	 	22	 

2

 

TAX ALLOCATION AGREEMENT

          This TAX ALLOCATION AGREEMENT (this “Agreement”) is entered into as of [__________],
by and between Ralcorp Holdings, Inc., a Missouri corporation (“Ralcorp”), and Post
Holdings, Inc. (“Post”), a Missouri corporation and direct, wholly owned subsidiary of
Ralcorp.

RECITALS

          WHEREAS, the Board of Directors of Ralcorp has determined that it is in the best interest of
its shareholders to effect a reorganization and spin-off providing for the separation of the Post
Group (as defined below) from the Ralcorp Group (as defined below);

          WHEREAS, Ralcorp, Post and Post Foods, LLC, a Delaware limited liability company and
wholly-owned subsidiary of Ralcorp (“Post US”) have entered into a Separation and
Distribution Agreement (the “Separation and Distribution Agreement”) providing for the
separation of the Post Group from the Ralcorp Group;

          WHEREAS, pursuant to the tax laws of various jurisdictions, the Ralcorp Affiliated Group (as
defined below) files certain tax returns on a consolidated, combined, unitary or other group basis;

          WHEREAS, pursuant to the terms of the Separation and Distribution Agreement, Ralcorp has
and/or intends to enter into the series of steps set forth on Annex I.

          WHEREAS, for U.S. federal income tax purposes, it is intended that: (i) the Post Contribution
(as defined below), taken together with the Distribution (as defined below) will qualify as a
tax-free reorganization within the meaning of Sections 355 and 368(a)(1)(D) of the Code; (ii)
Ralcorp will not recognize gain or loss with respect to the Post Contribution (including the
receipt by Ralcorp of the Post Debt Securities (as defined below) and any proceeds of the Post
Credit Facility (as defined below)), (iii) the Ralcorp shareholders will not recognize gain or loss
upon the receipt of Post Common Stock (as defined below) in the Distribution (except to the extent
of cash received in lieu of fractional shares), (iv) provided the Retained Shares (as defined
below) are transferred to Ralcorp creditors pursuant to the Equity for Debt Exchange (as defined
below) or to Ralcorp shareholders pursuant to the Share Repurchase (as defined below), in each
case, within 24 months following the Distribution, Ralcorp will not recognize gain or loss with
respect to the Retained Shares (other than (A) deductions attributable to the fact that the Ralcorp
Debt (as defined below) may be redeemed at a premium, (B) income attributable to the fact that the
Ralcorp Debt may be redeemed at a discount, and (C) interest expense accrued with respect to the
Ralcorp Debt), and (v) provided the Retained Shares are transferred to Ralcorp
shareholders pursuant to the Share Repurchase within 24 months following the Distribution, no gain
or loss will be recognized by (and no amount will be included in the income of) Ralcorp
shareholders upon the exchange of Ralcorp Common Stock (as defined below) for Retained Shares
pursuant to the Share Repurchase.

          WHEREAS, as a result of the Distribution, Post and/or its subsidiaries will cease to be
members of the Ralcorp Affiliated Group; and

          WHEREAS, the parties desire to provide for and agree upon the allocation between the parties
of liabilities for Taxes arising prior to, as a result of, and subsequent to the Distribution, and
to provide for and agree upon other matters relating to Taxes.

AGREEMENT

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

1

 

          Section 1.
Definition of Terms. For purposes of this Agreement (including the recitals hereof), the following terms have
the following meanings, and capitalized terms used but not otherwise defined herein shall have the
meaning ascribed to them in the Separation and Distribution Agreement:

               “Accounting Cutoff Date” means, with respect to Post and its subsidiaries, any date as
of the end of which there is a closing of the financial accounting records for such entity.

               “Active Trade or Business” means the active conduct (as defined in Section 355(b)(2)
of the Code and the regulations thereunder) by Post and its “separate affiliated group” (as defined
in Section 355(b)(3)(B) of the Code) of the Post® branded ready-to-eat cereal products as conducted
immediately prior to the Distribution.

               “Adjustment Request” means any formal or informal claim or request filed with any Tax
Authority, or with any administrative agency or court, for the adjustment, refund, or credit of
Taxes, including (a) any amended Tax Return claiming adjustment to the Taxes as reported on a Tax
Return or, if applicable, as previously adjusted, (b) any claim for equitable recoupment or other
offset, and (c) any claim for refund or credit of Taxes previously paid.

               “Affiliate” means any entity that is directly or indirectly “controlled” by either the
person in question or an Affiliate of such person. “Control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of a
person, whether through ownership of voting securities, by contract or otherwise. The term
Affiliate shall refer to Affiliates of a person as determined immediately after the Distribution.

               “Agreement” has the meaning set forth in the first sentence of this Agreement.

               “Board Certificate” has the meaning set forth in Section 7.02(d) of this Agreement.

               “Business Day” means a day (other than Saturday or Sunday) on which banks are
generally open in the State of New York, USA for ordinary business.

               “Canada Sale” has the meaning set forth in Annex I.

               “Code” means the U.S. Internal Revenue Code of 1986, as amended.

               “Company” or “Companies” means Ralcorp, and/or Post, as the context requires.

               “Company Indemnifying Party” has the meaning set forth in Section 5.02(b) of this
Agreement.

               “Controlling Party” has the meaning set forth in Section 10.02(d) of this Agreement.

               “Debt for Debt Exchange” has the meaning set forth in Annex I.

               “Debt for Debt Exchange Agreement” has the meaning set forth in Annex I.

               “DGCL” means the Delaware General Corporation Law.

               “Distribution” has the meaning set forth in Annex I.

               “Distribution Date” means the date of the Distribution.

               “Equity for Debt Exchange” has the meaning set forth in Annex I.

               “Equity for Debt Exchange Agreement” has the meaning set forth in Annex I.

2

 

               “Fifty-Percent or Greater Interest” has the meaning ascribed to such term for purposes
of Sections 355(d) and (e) of the Code.

               “Final Determination” means the final resolution of liability for Tax, which
resolution may be for a specific issue or adjustment or for a taxable period, (a) by IRS Form 870
or 870-AD (or any successor forms thereto), on the date of acceptance by or on behalf of the
taxpayer, or by a comparable form under the laws of a State, local, or foreign taxing jurisdiction,
except that a Form 870 or 870-AD or comparable form shall not constitute a Final Determination to
the extent that it reserves (whether by its terms or by operation of law) the right of the taxpayer
to file a claim for refund or the right of the Tax Authority to assert a further deficiency in
respect of such issue or adjustment or for such taxable period (as the case may be); (b) by a
decision, judgment, decree, or other order by a court of competent jurisdiction, which has become
final and unappealable; (c) by a closing agreement or accepted offer in compromise under Sections
7121 or 7122 of the Code, or a comparable agreement under the laws of a State, local, or foreign
taxing jurisdiction; (d) by any allowance of a refund or credit in respect of an overpayment of
Tax, but only after the expiration of all periods during which such refund may be recovered
(including by way of offset) by the jurisdiction imposing such Tax; (e) by a final settlement
resulting from a treaty-based competent authority determination; or (f) by any other final
disposition, including by reason of the expiration of the applicable statute of limitations or by
mutual agreement of the parties.

               “Group” means the Ralcorp Group or the Post Group, or both, as the context requires.

               “Income Taxes” means any Tax imposed by any Tax Authority which is imposed on or
measured by net income, and any interest, penalties, additions to tax, or additional amounts in
respect of the foregoing.

               “Indemnitee” has the meaning set forth in Section 13.03 of this Agreement.

               “Indemnitor” has the meaning set forth in Section 13.03 of this Agreement.

               “IRS” means the United States Internal Revenue Service.

               “Joint Return” shall mean any Return of a member of the Ralcorp Group or the Post
Group that is not a Separate Return.

               “Non-Controlling Party” has the meaning set forth in Section 10.02(d) of this
Agreement.

               “Non-US Transfers” means transfers relating to the Canada Sale.

               “Notified Action” has the meaning set forth in Section 7.04(a) of this Agreement.

               “Other Taxes” means any Tax imposed by any Tax Authority other than any Income Taxes
or any Transfer Taxes, and any interest, penalties, additions to tax, or additional amounts in
respect of the foregoing.

               “Past Practices” has the meaning set forth in Section 4.04(a) of this Agreement.

               “Payment Date” means (i) with respect to any Ralcorp Federal Consolidated Income Tax
Return, the due date for any required installment of estimated taxes determined under Section 6655
of the Code, the due date (determined without regard to extensions) for filing the return
determined under Section 6072 of the Code, and the date the return is filed, and (ii) with respect
to any other Tax Return, the corresponding dates determined under the applicable Tax Law.

               “Payor” has the meaning set forth in Section 5.02(a) of this Agreement.

               “Person” means an individual, a partnership, a corporation, a limited liability
company, an association, a joint stock company, a trust, a joint venture, an unincorporated
organization or a governmental

3

 

entity or any department, agency or political subdivision thereof, without regard to whether
any entity is treated as disregarded for U.S. federal income tax purposes.

               “Post-Distribution Period” means any Tax Period beginning after the Distribution Date,
and, in the case of any Straddle Period, the portion of such Straddle Period beginning the day
after the Distribution Date.

               “Post” have the meaning set forth in the first sentence of this Agreement.

               “Post Business” has the meaning set forth in the Separation and Distribution
Agreement.

               “Post Capital Stock” means all classes or series of capital stock of Post, including
(i) the Post common stock, (ii) all options, warrants and other rights to acquire such capital
stock and (iii) all instruments properly treated as stock in Post for U.S. federal income tax
purposes.

               “Post Carried Item” means any net operating loss, net capital loss, excess tax credit,
or other similar Tax item of any member of the Post Group which may or must be carried from one Tax
Period to another prior Tax Period, or carried from one Tax Period to another subsequent Tax
Period, under the Code or other applicable Tax Law.

               “Post Contribution” has the meaning set forth in Annex I.

               “Post Credit Facility” has the meaning set forth in Annex I.

               “Post Debt Securities” has the meaning set forth in Annex I.

               “Post Full Taxpayer” means the assumption that the Post Group (a) is subject to the
highest marginal regular statutory income Tax rate that would be applicable to Post if it filed Tax
Returns on a standalone basis, (b) has sufficient taxable income to permit the realization or
receipt of the relevant Tax Benefit at the earliest possible time, and (c) is not subject to the
alternative minimum tax.

               “Post Group” means Post and its Affiliates.

               “Post Group Attributes” means any Tax Attributes of the Post Group.

               “Post Separate Return” means any Separate Return of Post or any member of the Post
Group.

               “Post US” has the meaning set forth in the recitals to this Agreement.

               “Pre-Distribution Period” means any Tax Period ending on or before the Distribution
Date, and, in the case of any Straddle Period, the portion of such Straddle Period ending on the
Distribution Date.

               “Prime Rate” means the base rate on corporate loans charged by Citibank, N.A. from
time to time, compounded daily on the basis of a year of 365 or 366 (as applicable) days and actual
days elapsed.

               “Privilege” means any privilege that may be asserted under applicable law, including,
any privilege arising under or relating to the attorney-client relationship (including the
attorney-client and work product privileges), the accountant-client privilege and any privilege
relating to internal evaluation processes.

               “Proposed Acquisition Transaction” means a transaction or series of transactions (or
any agreement, understanding or arrangement, within the meaning of Section 355(e) of the Code and
Treasury Regulation Section 1.355-7, or any other regulations promulgated thereunder, to enter into
a transaction or series of transactions), whether such transaction is supported by Post management
or shareholders, is a hostile acquisition, or otherwise, as a result of which Post would merge or
consolidate with any other Person or as a result

4

 

of which any Person or any group of related Persons would (directly or indirectly) acquire, or
have the right to acquire, from Post and/or one or more holders of outstanding shares of Post
Capital Stock, a number of shares of Post Capital Stock that would, when combined with any other
changes in ownership of Post Capital Stock pertinent for purposes of Section 355(e) of the Code,
comprise 40% or more of (A) the value of all outstanding shares of stock of Post as of the date of
such transaction, or in the case of a series of transactions, the date of the last transaction of
such series, or (B) the total combined voting power of all outstanding shares of voting stock of
Post as of the date of such transaction, or in the case of a series of transactions, the date of
the last transaction of such series. Notwithstanding the foregoing, a Proposed Acquisition
Transaction shall not include (A) the adoption by Post of a shareholder rights plan or (B)
issuances by Post that satisfy Safe Harbor VIII (relating to acquisitions in connection with a
person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan
of an employer) of Treasury Regulation Section 1.355-7(d). For purposes of determining whether a
transaction constitutes an indirect acquisition, any recapitalization resulting in a shift of
voting power or any redemption of shares of stock shall be treated as an indirect acquisition of
shares of stock by the exchanging or non-exchanging shareholders, as applicable. This definition
and the application thereof is intended to monitor compliance with Section 355(e) of the Code and
shall be interpreted accordingly. Any clarification of, or change in, the statute or regulations
promulgated under Section 355(e) of the Code shall be incorporated in this definition and its
interpretation.

               “Ralcorp” has the meaning set forth in the first sentence of this Agreement.

               “Ralcorp Affiliated Group” has the meaning set forth in the definition of “Ralcorp
Federal Consolidated Income Tax Return.”

               “Ralcorp Debt” has the meaning set forth in Annex I.

               “Ralcorp Federal Consolidated Income Tax Return” means any United States federal
Income Tax Return for the affiliated group (as that term is defined in Section 1504 of the Code and
the regulations thereunder) of which Ralcorp is the common parent (the “Ralcorp Affiliated
Group”).

               “Ralcorp Full Taxpayer” means the assumption that the Ralcorp Affiliated Group (a) is
subject to the highest marginal regular statutory income Tax rate, (b) has sufficient taxable
income to permit the realization or receipt of the relevant Tax Benefit at the earliest possible
time, and (c) is not subject to the alternative minimum tax.

               “Ralcorp Group” means Ralcorp and its Affiliates, excluding any entity that is a
member of the Post Group.

               “Ralcorp Separate Return” means any Separate Return of Ralcorp or any member of the
Ralcorp Group.

               “Ralcorp State Combined Income Tax Return” means a consolidated, combined or unitary
State Income Tax Return that actually includes, by election or otherwise, one or more members of
the Ralcorp Group together with one or more members of the Post Group.

               “Recoverable Taxes” has the meaning set forth in Section 2.02.

               “Representation Letters” means the representation letters and any other materials
(including, without limitation, the Ruling Request) delivered or deliverable by Ralcorp and others
in connection with the rendering by Tax Advisors, and/or the issuance by the IRS, of the Tax
Opinions/Rulings.

               “Required Party” has the meaning set forth in Section 5.02(a) of this Agreement.

5

 

               “Responsible Company” means, with respect to any Tax Return, the Company having
responsibility for preparing and filing such Tax Return under this Agreement.

               “Retained Shares” has the meaning set forth in Annex I.

               “Retention Date” has the meaning set forth in Section 9.01 of this Agreement.

               “Ruling” means any private letter ruling (and any supplemental private letter ruling)
issued by the IRS to Ralcorp in connection with the Transactions.

               “Ruling Documents” means the Ruling and the Ruling Request.

               “Ruling Request” means any letter filed by Ralcorp with the IRS requesting a ruling
regarding certain tax consequences of the Transactions (including all attachments, exhibits, and
other materials submitted with such ruling request letter) and any amendment or supplement to such
ruling request letter.

               “Section 7.02(d) Acquisition Transaction” means any transaction or series of
transactions that is not a Proposed Acquisition Transaction but would be a Proposed Acquisition
Transaction if the percentage reflected in the definition of Proposed Acquisition Transaction were
25% instead of 40%.

               “Separate Return” means (a) in the case of any Tax Return of any member of the Post
Group (including any consolidated, combined or unitary return), any such Tax Return that does not
include any member of the Ralcorp Group and (b) in the case of any Tax Return of any member of the
Ralcorp Group (including any consolidated, combined or unitary return), any such Tax Return that
does not include any member of the Post Group.

               “Separation and Distribution Agreement” means the Separation and Distribution
Agreement, as amended from time to time, by and among Ralcorp, Post and Post US dated [__________].

               “Share Repurchase” has the meaning set forth in Annex I.

               “Share Retention” has the meaning set forth in Annex I.

               “Straddle Period” means any Tax Period that begins on or before and ends after the
Distribution Date.

               “Straddle Period Returns” means any Tax Return for a Straddle Period that includes one
or more members of the Post Group.

               “Tax” or “Taxes” means any income, gross income, gross receipts, profits,
capital stock, franchise, withholding, payroll, social security, workers compensation,
unemployment, disability, property, ad valorem, stamp, excise, severance, occupation, service,
sales, use, license, lease, transfer, import, export, value added, alternative minimum, estimated
or other tax (including any fee, assessment, or other charge in the nature of or in lieu of any
tax) imposed by any governmental entity or political subdivision thereof, and any interest,
penalties, additions to tax, or additional amounts in respect of the foregoing.

               “Tax Attribute” shall mean a net operating loss, net capital loss, unused investment
credit, unused foreign tax credit, excess charitable contribution, general business credit, or any
other Tax Item that could reduce a Tax.

               “Tax Authority” means, with respect to any Tax, the governmental entity or political
subdivision thereof that imposes such Tax, and the agency (if any) charged with the collection of
such Tax for such entity or subdivision.

6

 

               “Tax Benefit” means any item of loss, deduction, credit, refund or any other Tax Item
that decreases Taxes paid or payable. Tax Benefits are to be determined using the assumption that
each party pays Federal, state, local and foreign Tax at the highest applicable marginal corporate
Tax rate and can fully utilize any available Tax Benefits.

               “Tax Contest” means an audit, review, examination, or any other administrative or
judicial proceeding with the purpose or effect of redetermining Taxes (including any administrative
or judicial review of any claim for refund).

               “Tax Control” means the definition of “control” set forth in Section 368(c) of the
Code (or in any successor statute or provision), as such definition may be amended from time to
time.

               “Tax Dispute” has the meaning set forth in Section 14 of this Agreement.

               “Tax-Free Status” means: (i) the qualification of the Post Contribution, taken
together with the Distribution as a tax-free reorganization within the meaning of Sections 355 and
368(a)(1)(D) of the Code; (ii) the nonrecognition of gain or loss by Ralcorp with respect to the
Post Contribution (including the receipt by Ralcorp of the Post Debt Securities and any proceeds of
the Post Credit Facility), (iii) the nonrecognition of gain or loss by Ralcorp shareholders upon
the receipt of Post Common Stock in the Distribution (except to the extent of cash received in lieu
of fractional shares), (iv) provided the Retained Shares are transferred to Ralcorp creditors
pursuant to the Equity for Debt Exchange or to Ralcorp shareholders pursuant to the Share
Repurchase, in each case, within 24 months following the Distribution, the nonrecognition of gain
or loss by Ralcorp with respect to the Retained Shares (other than (A) deductions attributable to
the fact that the Ralcorp Debt may be redeemed at a premium, (B) income attributable to the fact
that the Ralcorp Debt may be redeemed at a discount, and (C) interest expense accrued with respect
to the Ralcorp Debt), and (v) provided the Retained Shares are transferred to Ralcorp
shareholders pursuant to the Share Repurchase within 24 months following the Distribution, the
nonrecognition of gain or loss by (and no amount will be included in the income of) Ralcorp
shareholders upon the exchange of Ralcorp Common Stock for Retained Shares pursuant to the Share
Repurchase.

               “Tax Item” means any item of income, gain, loss, deduction, credit, recapture of
credit or any other item which increases or decreases Taxes paid or payable.

               “Tax Law” means the law of any governmental entity or political subdivision thereof
relating to any Tax.

               “Tax Opinions/Rulings” means the opinion or opinions of Tax Advisors deliverable to
Ralcorp in connection with the Transactions and/or the Ruling or Rulings.

               “Tax Period” means, with respect to any Tax, the period for which the Tax is reported
as set forth under the Code or other applicable Tax Law.

               “Tax Records” means any Tax Returns, Tax Return workpapers, documentation relating to
any Tax Contests, and any other books of account or records (whether or not in written, electronic
or other tangible or intangible forms and whether or not stored on electronic or any other medium)
required to be maintained under the Code or other applicable Tax Laws or under any record retention
agreement with any Tax Authority.

               “Tax-Related Losses” means (i) all federal, state and local Taxes imposed pursuant to
any settlement, Final Determination, judgment or otherwise; (ii) all accounting, legal and other
professional fees, and court costs incurred in connection with such Taxes; and (iii) all costs,
expenses and damages associated with stockholder litigation or controversies and any amount paid by
Ralcorp (or any Ralcorp Affiliate) or Post (or any Post Affiliate) in respect of the liability of
shareholders, whether paid to shareholders or to the IRS or any other Tax Authority, in each case,
resulting from the failure of the Transactions to have Tax-Free Status.

7

 

               “Tax Return” or “Return” means any report of Taxes due, any claim for refund
of Taxes paid, any information return with respect to Taxes, or any other similar report,
statement, declaration, or document required to be filed under the Code or other Tax Law, including
any attachments, exhibits, or other materials submitted with any of the foregoing, and including
any amendments or supplements to any of the foregoing.

               “Third Party Indemnifying Party” has the meaning set forth in Section 5.02(b) of this
Agreement.

               “Transaction Agreements” means the Separation and Distribution Agreement and all
agreements included in the definition “Transaction Agreement” contained therein.

               “Transactions” means the Post Contribution, Distribution, Debt for Debt Exchange,
Equity for Debt Exchange, Share Retention and Share Repurchase.

               “Transfer Taxes” has the meaning set forth in Section 2.02.

               “Treasury Regulations” means the regulations promulgated from time to time under the
Code as in effect for the relevant Tax Period.

               “Transition Services Agreement” has the meaning set forth in the Separation and
Distribution Agreement.

               “Unqualified Tax Opinion” means an unqualified “will” opinion of a Tax Advisor, which
Tax Advisor is acceptable to Ralcorp, on which Ralcorp may rely to the effect that a transaction
will not affect the Tax-Free Status. Any such opinion must assume that the Transactions would have
qualified for Tax-Free Status if the transaction in question did not occur.

          Section 2. Allocation of Tax Liabilities.

          2.01 Pre-Distribution/Post-Distribution Taxes.

               (a) Income Taxes.

          (i) Except as otherwise provided in Sections 2.02 and Section 2.03, Ralcorp shall
indemnify and hold harmless, Post and each member of the Post Group from and against (A) all
Income Taxes of the Ralcorp Group and (B) all Income Taxes of any affiliated, consolidated,
combined or unitary group of which Post or any member of the Post Group was a member on or
before the Distribution Date, including pursuant to Treas. Reg. 1.1502-6 or analogous or
similar state, local or foreign law or regulation.

          (ii) Except as otherwise provided in Sections 2.01(a)(i), 2.02 and 2.03, Post shall
indemnify and hold harmless Ralcorp and each member of the Ralcorp Group from and against
all Income Taxes of the Post Group for any Post-Distribution Period.

               (b) Other Taxes.

          (i) Post shall be liable for and shall indemnify Ralcorp and each member of the Ralcorp
Group for all Other Taxes in which such Tax is imposed on Post, Post US or a member of the
Post Group as a separate entity and for which such entity files a Separate Return.

          (ii) Except as otherwise provided in Section 2.01(b)(i), Ralcorp shall be liable for
and shall indemnify Post and each member of the Post Group for all Other Taxes.

          2.02 Transfer Taxes. Post shall be liable for and shall indemnify Ralcorp and each member of the Ralcorp Group
for any value-added, sales or other Taxes incurred in connection with the Non-U.S. Transfers or the

8

 

Transactions that would be recoverable (whether or not actually recovered by Post or any
member of the Post Group) under applicable laws (including Canadian Federal goods and services tax,
harmonized sales tax, Quebec sales tax and Canadian Provincial sales tax) (“Recoverable
Taxes”). All other stamp, sales, use, gross receipts, value-added, real estate transfer or
other transfer Taxes incurred in connection with the Non-US Transfers or the Transactions (such
Taxes, together with any interest, penalties or additions to such Taxes, “Transfer Taxes”)
shall be shared equally by Ralcorp, on the one hand, and Post on the other hand. For the avoidance
of doubt, Transfer Taxes shall not include Taxes on or measured by net income.

          2.03 Transaction Taxes.

               (a) Ralcorp shall indemnify and hold harmless Post and each member of the Post Group from and
against any Tax Related Losses other than those described in Section 2.03(b). In the case of each
of the items described in 2.03(a) such amounts to be calculated on the basis that Post or such Post
Group member or Affiliate is a Post Full Taxpayer.

               (b) Post shall indemnify and hold harmless Ralcorp and each member of the Ralcorp Group from
and against any Tax Related Losses that are attributable to or result from any one or more of the
following:

          (i) any inaccurate representation made in Sections 7.01 or 7.02;

          (ii) any inaccurate statement of fact or inaccurate representation (or omission to
state a material fact, the omission of which causes the facts stated or representations made
not to be complete and accurate in all material respects) made by Post in a letter or
certificate that forms the basis for any Tax Opinions/Rulings;

          (iii) any action or failure to take action by Post or a member of the Post Group, or
any of their Affiliates, after the Distribution Date that violates the covenants made by
Post set forth in this Agreement, the Separation and Distribution Agreement or any other
Transaction Agreement;

          (iv) the direct or indirect acquisition (other than pursuant to the Distribution) of
all or a portion of Post’s stock and/or its or its subsidiaries’ stock or assets by any
means whatsoever by any Person;

          (v) any negotiations, understandings, agreements or arrangements by Post with respect
to transactions or events (including, without limitation, stock issuances, pursuant to the
exercise of stock options or otherwise, option grants, capital contributions or
acquisitions, or a series of such transactions or events) that cause the Distribution to be
treated as part of a plan pursuant to which one or more Persons acquire directly or
indirectly stock of Post representing a Fifty-Percent or Greater Interest therein;

          (vi) any action or failure to act by Post after the Distribution (including, without
limitation, any amendment to Post’ certificate of incorporation (or other organizational
documents), whether through a stockholder vote or otherwise) affecting the voting rights of
Post stock (including, without limitation, through the conversion of one class of Post
Capital Stock into another class of Post Capital Stock); or

          (vii) any act, or failure to act, by Post or any Post Affiliate as set forth in Section
7.02 (regardless whether such act or failure to act is covered by a Ruling, Unqualified Tax
Opinion or waiver described in clause (i), (ii) or (iii) of Section 7.02(c), or a Board
Certificate described in Section 7.02(d)).

               In the case of each of the items described in this Section 2.03(b), such amounts shall be
calculated on the basis that Ralcorp or such Ralcorp Group member or Affiliate is a Ralcorp Full
Taxpayer.

9

 

     2.04 Post Group Attributes. For the avoidance of doubt, except as otherwise set forth in Section 6.01, Post shall not be
entitled to receive payment from Ralcorp in respect of any Post Group Attributes utilized by the
Ralcorp Group or for any reduction of any Taxes (or increase in Tax Attributes) or any Tax Benefit
realized by the Ralcorp Group (whether such Tax Attributes, Tax Benefits or reduction in Taxes are
reported on an original Tax Return, arise pursuant to a Final Determination or otherwise).

     Section 3. Proration of Taxes.

     3.01 General Method of Proration. Tax Items shall be apportioned between Pre-Distribution Periods and Post-Distribution
Periods in accordance with the principles of Treasury Regulation Section 1.1502-76(b) as reasonably
interpreted and applied by Ralcorp. If the Distribution Date is not an Accounting Cutoff Date (and
provided an election under Treasury Regulation Section 1.1502-76(b)(2)(ii)(D) is not made), the
provisions of Treasury Regulation Section 1.1502-76(b)(2)(iii) will be applied to ratably allocate
the items (other than extraordinary items) for the month which includes the Distribution Date. At
Ralcorp’s election, in its sole discretion, an election under Treasury Regulation Section
1.1502-76(b)(2)(ii)(D) (relating to ratable allocation of a year’s items) shall be made. At
Ralcorp’s request, Post shall join in making an election under Treasury Regulation Section
1.1502-76(b)(2)(ii)(D).

     3.02 Transaction Treated as Extraordinary Item. In determining the apportionment of Tax Items between Pre-Distribution Periods and
Post-Distribution Periods, any Tax Items relating to the Transactions shall be treated as
extraordinary items described in Treasury Regulation Section 1.1502-76(b)(2)(ii)(C) and shall (to
the extent occurring on or prior to the Distribution Date) be allocated to Pre-Distribution
Periods, and any Taxes related to such items shall be treated under Treasury Regulation Section
1.1502-76(b)(2)(iv) as relating to such extraordinary item and shall (to the extent occurring on or
prior to the Distribution Date) be allocated to Pre-Distribution Periods.

     3.03 Other Income Taxes. Except to the extent required by law, for the avoidance of doubt, any Tax Item resulting
from Post and/or its subsidiaries ceasing to be members of the Ralcorp Group (including any Tax
Items required to be taken into account by the Ralcorp Group under Treas. Reg. Sections 1.1502-13
and 1.1502-19) shall be treated as arising in the Pre-Distribution Period.

     Section 4. Preparation and Filing of Tax Returns.

     4.01 General. Except as otherwise provided in this Section 4, Tax Returns shall be prepared and filed
when due (including extensions) by the person obligated to file such Tax Returns under the Code or
applicable Tax Law. The Companies shall provide, and shall cause their Affiliates to provide,
assistance and cooperation to one another in accordance with Section 8 with respect to the
preparation and filing of Tax Returns, including providing information required to be provided in
Section 8.

     4.02 Ralcorp’s Responsibility. Ralcorp has the exclusive obligation and right to prepare and file, or to cause to be
prepared and filed:

               (a) all Ralcorp Federal Consolidated Income Tax Returns for any Tax Periods ending on, before
or after the Distribution Date;

               (b) all Ralcorp State Combined Income Tax Returns or Joint Returns which Ralcorp reasonably
determines are required to be filed (or which Ralcorp chooses to be filed) by the Companies or any
of their Affiliates for any Tax Period that includes one or more members of the Ralcorp Group for
all Pre-Distribution Periods; and

               (c) all Post Separate Returns relating to Income Taxes and Ralcorp Separate Returns which
Ralcorp reasonably determines are required to be filed by the Companies or any of their Affiliates
(or which Ralcorp chooses to be filed) for Tax Periods ending on or before the Distribution Date.

10

 

          4.03 Post’s Responsibility. Post shall prepare and file, or shall cause to be prepared and filed:

               (a) all Tax Returns required to be filed by or with respect to members of the Post Group other
than those Tax Returns which Ralcorp is required, or chooses, to prepare and file under Section
4.02, provided that Post shall not file any Post Separate Returns for an Affiliate of Post with
respect to a Tax Period in a jurisdiction and for a type of Tax where Ralcorp files a Joint Return
that includes such Affiliate of Post; and

               (b) all Straddle Period Returns.

               The Tax Returns required to be prepared and filed by Post under this Section 4.03 shall
include any Post Tax Return for Tax Periods beginning on or after the Distribution Date.

          4.04 Tax Accounting Practices.

               (a) General Rule. Except as provided in Section 4.04(b), any Tax Return for a
Pre-Distribution Period or Straddle Period shall be prepared in accordance with past practices,
accounting methods, elections or conventions (“Past Practices”) used with respect to the
Tax Returns in question (unless there is no reasonable basis for the use of such Past Practices or
unless there is no adverse effect to Ralcorp), and to the extent any items are not covered by Past
Practices (or in the event that there is no reasonable basis for the use of such Past Practices or
there is no adverse effect to Ralcorp), in accordance with generally acceptable Tax accounting
practices.

               (b) Reporting of Transactions. The Tax treatment reported on any Tax Return relating
to the Transactions shall be consistent with the treatment thereof in the Ruling Requests and the
Tax Opinions/Rulings except to the extent otherwise required by a Final Determination.

          4.05 Consolidated or Combined Tax Returns. At Ralcorp’s election, in its sole discretion, Post will elect and join, and will cause its
respective Affiliates to elect and join, in filing any Ralcorp State Combined Income Tax Returns
and any Joint Returns that Ralcorp determines are required to be filed or that Ralcorp chooses to
file pursuant to Section 4.02(b). With respect to any Post Separate Returns relating to any Tax
Period (or portion thereof) ending on or prior to the Distribution Date, Post will elect and join,
and will cause its respective Affiliates to elect and join, in filing consolidated, unitary,
combined, or other similar joint Tax Returns, to the extent reasonably determined by Ralcorp.

          4.06 Right to Review Tax Returns. The Responsible Company with respect to any Tax Return shall make such Tax Return and
related workpapers available for review by the other Companies, if requested, to the extent (a)
such Tax Return relates to Taxes for which the requesting party would reasonably be expected to be
liable, (b) such Tax Return relates to Taxes and the requesting party would reasonably be expected
to be liable in whole or in part for any additional Taxes owing as a result of adjustments to the
amount of such Taxes reported on such Tax Return, (c) such Tax Return relates to Taxes for which
the requesting party would reasonably be expected to have a claim for Tax Benefits under this
Agreement, or (d) the requesting party reasonably determines that it must inspect such Tax Return
to confirm compliance with the terms of this Agreement. The Responsible Company shall use its
reasonable best efforts to make such Tax Return available for review as required under this
paragraph at least fifteen (15) days prior to the due date for filing of such Tax Return to provide
the requesting party with a meaningful opportunity to analyze and comment on such Tax Return.

          4.07 Post Carrybacks, Carryforwards and Claims for Refund. Post hereby agrees that Ralcorp shall be entitled to determine in its sole discretion
whether (a) any Adjustment Request with respect to any Joint Return shall be filed to claim in any
Pre-Distribution Period any Post Carried Item, and (b) any available elections shall be made to
waive the right to claim in any Pre-Distribution Period with respect to any Joint Return any Post
Carried Item, and whether any affirmative election shall be made to claim any such Post Carried
Item.

11

 

          4.08 Apportionment of Earnings and Profits and Tax Attributes. Ralcorp shall in good faith advise Post as soon as reasonably practicable in writing of the
portion, if any, of any earnings and profits, Tax Attribute, overall foreign loss or other
consolidated, combined or unitary attribute which Ralcorp determines shall be allocated or
apportioned to the Post Group under applicable Tax law. Post and all members of the Post Group
shall prepare all Tax Returns on a basis that is consistent with the information provided in such
written notice. In the event of an adjustment by a Tax Authority to the earnings and profits or any
Tax Attribute determined by Ralcorp, Ralcorp shall promptly notify Post in writing of such
adjustment. For the absence of doubt, Ralcorp shall not be liable to Post or any member of the Post
Group for any failure of any determination under this Section 4.08 to be accurate under applicable
law.

          Section 5. Tax Payments.

          5.01 Payment of Taxes. In the case of any Joint Return:

               (a) Computation and Payment of Tax Due. At least three (3) Business Days prior to any
Payment Date for any Tax Return, Ralcorp shall compute the amount of Tax required to be paid to the
applicable Tax Authority (taking into account the requirements of Section 4.04 relating to
consistent accounting practices, as applicable) with respect to such Tax Return on such Payment
Date and shall notify Post of the amount Ralcorp has tentatively determined is required to be paid
by Post in respect of such Tax Return under this Agreement. Ralcorp shall pay such amount that
Ralcorp has computed is required to be paid to the applicable Tax Authority to such Tax Authority
on or before such Payment Date.

               (b) Computation and Payment of Liability With Respect To Tax Due. Following notice of
the computation of Tax due pursuant to Section 5.01(a) and within five (5) days following the
earlier of (i) the due date (including extensions) for filing any Tax Return or (ii) the date on
which such Tax Return is filed, Post shall pay to Ralcorp the amount, if any, for which Post is
responsible under the provisions of Section 2. For the avoidance of doubt, Post shall make payments
pursuant to this Section 5.01(b) upon the payment by Ralcorp of estimated Taxes (or Taxes due with
a request for extension of time to file) and appropriate adjustments shall be made at the time the
corresponding final Tax Return is filed.

               (c) Adjustments Resulting in Underpayments. In the case of any adjustment pursuant to
a Final Determination with respect to any Tax Return, the Responsible Company shall pay to the
applicable Tax Authority when due any additional Tax due with respect to such Return required to be
paid as a result of such adjustment pursuant to a Final Determination. The Responsible Company
shall compute the amount for which the other Company is responsible in accordance with Section 2
and the other Company shall pay to the Responsible Company any amount due to the Responsible
Company under Section 2 within five (5) days from the date of receipt of a written notice and
demand from the Responsible Company for payment of the amount due, accompanied by evidence of
payment and a statement detailing the Taxes paid and describing in reasonable detail the
particulars relating thereto.

               (d) For the avoidance of doubt, for purposes of this Section 5.01, Ralcorp shall be the
Responsible Party with respect to any Ralcorp Federal Consolidated Income Tax Return.

          5.02 Indemnification Payments.

               (a) If any Company (the “Payor”) is required under applicable Tax Law to pay to a Tax
Authority a Tax that another Company (the “Required Party”) is liable for under this
Agreement, the Required Party shall reimburse the Payor within eight (8) days of delivery by the
Payor to the Required Party of an invoice for the amount due, accompanied by evidence of payment
and a statement detailing the Taxes paid and describing in reasonable detail the particulars
relating thereto.

               (b) If any Company (the “Third Party Indemnifying Party”) is required under the terms
of an agreement to which it is a party (or with respect to which it has agreed to guarantee the
obligations thereunder) to

12

 

pay to a third party a Tax that another Company (the “Company Indemnifying Party”) is
liable for under this Agreement, the Company Indemnifying Party shall reimburse the Third Party
Indemnifying Party within eight (8) days of delivery by the Third Party Indemnifying Party to the
Company Indemnifying Party of an invoice for the amount due, accompanied by evidence of payment and
a statement detailing the Taxes paid and describing in reasonable detail the particulars relating
thereto.

               (c) All indemnification payments under this Agreement shall be made by Ralcorp directly to
Post and by Post directly to Ralcorp; provided, however, that if the Companies mutually agree with
respect to any such indemnification payment, any member of the Ralcorp Group, on the one hand, may
make such indemnification payment to any member of the Post Group, on the other hand, and vice
versa.

          Section 6.
Tax Benefits.

          6.01 Tax Benefits.

               (a) Ralcorp shall be entitled to any refund (and any interest thereon received from the
applicable Tax Authority) of Taxes received by any member of the Ralcorp Group or the Post Group,
other than any refund to which Post is entitled pursuant to Section 6.01(e). Post shall not be
entitled to any refund (or any interest thereon received from the applicable Tax Authority), except
as set forth in Section 6.01(e). A Company receiving a refund to which another Company is entitled
hereunder shall pay over such refund to such other Company within five (5) Business Days after such
refund is received.

               (b) The amount of economic benefit of any Tax Benefit of Post or any member of the Post Group
as a result of an adjustment pursuant to a Final Determination of any Taxes (i) arising in any
Pre-Distribution Period shall be for the account of the Ralcorp Group, (ii) arising in any
Post-Distribution Period shall be for the account of the Post Group and (iii) arising in any
Straddle Period (other than with respect to Taxes described in Section 2.01(b)(i)) shall be
apportioned between the Pre-Distribution Period and the Post-Distribution Period pursuant to the
principles set forth in Section 3 above.

               (c) For purposes of determining whether an adjustment to any Taxes for which a member of the
Ralcorp Group is liable hereunder is expected to result in a Tax Benefit for Post, the Post Group
shall be deemed to be a Post Full Taxpayer. For purposes of determining the amount of Taxes for
which the Ralcorp Group is, or is reasonably expected to be, liable as a result of an adjustment
pursuant to a Final Determination, the Ralcorp Group shall be deemed (i) not to utilize any Tax
Attributes available to the Ralcorp Group and (ii) to be a Ralcorp Full Taxpayer.

               (d) No later than five (5) Business Days following a Final Determination described in Section
6.01(b), Ralcorp shall provide Post with a written calculation of the amount payable to Ralcorp by
Post pursuant to this Section 6. In the event that Post disagrees with any such calculation
described in this Section 6.01(d), Post shall so notify Ralcorp in writing within thirty (30) days
of receiving the written calculation set forth above in this Section 6.01(d). Ralcorp and Post
shall endeavor in good faith to resolve such disagreement, and, failing that, the amount payable
under Section 6.01(b) shall be determined in accordance with the disagreement resolution provisions
of Section 14 as promptly as practicable.

               (e) Without prejudice to Section 6.01(a), Post shall be entitled to any refund (and any
interest thereon received from the applicable Tax Authority) of Taxes reported on a Post Group Tax
Return for a Post-Distribution Period. For the avoidance of doubt, Ralcorp, and not Post, shall be
entitled to any refund or Tax Benefit that results from a Post Carried Item, other than any refund
to which Post is entitled pursuant to the first sentence of this Section 6.01(e).

          6.02 Ralcorp and Post Income Tax Deductions in Respect of Certain Equity Awards and
Incentive Compensation. (a) Solely the member of the Group for which the relevant individual is currently employed
or, if such individual is not currently employed by a member of the Group, was most recently
employed at the time of the

13

 

vesting, exercise, disqualifying disposition, payment or other relevant taxable event, as
appropriate, in respect of the equity awards and other incentive compensation described in Section
7.09 of the Separation and Distribution Agreement shall be entitled to claim, in a
Post-Distribution Period, any Income Tax deduction in respect of such equity awards and other
incentive compensation on its respective Tax Return associated with such event.

          Section 7.
Tax-Free Status.

          7.01 Tax Opinions/Rulings and Representation Letters. Each of Post and Ralcorp hereby represents and agrees that (a) it has examined the Ruling
Documents and the Representation Letters prior to the date hereof and (b) subject to any
qualifications therein, all information contained in such Ruling Documents or Representation
Letters that concerns or relates to such Company or any member of its Group are and will be true,
correct and complete.

          7.02 Restrictions on Post.

               (a) Post agrees that it will not take or fail to take, or permit any Post Affiliate to take or
fail to take, any action where such action or failure to act would be inconsistent with or cause to
be untrue any material, information, covenant or representation in any Representation Letters or
Tax Opinions/Rulings. Post agrees that it will not take or fail to take, or permit any Post
Affiliate to take or fail to take, any action which prevents or could reasonably be expected to
prevent (i) the Tax-Free Status, or (ii) any transaction contemplated by the Separation and
Distribution Agreement which is intended by the parties to be tax-free from so qualifying.

               (b) Post agrees that, from the date hereof until the first day after the two-year anniversary
of the Distribution Date, it will (i) maintain its status as a company engaged in the Active Trade
or Business for purposes of Section 355(b)(2) of the Code, and (ii) not engage in any transaction
that would result in it ceasing to be a company engaged in the Active Trade or Business for
purposes of Section 355(b)(2) of the Code, in each case, taking into account Section 355(b)(3) of
the Code.

               (c) Post agrees that, from the date hereof until the first day after the two-year anniversary
of the Distribution Date, it will not:

          (i) enter into any Proposed Acquisition Transaction or, to the extent Post has the
right to prohibit any Proposed Acquisition Transaction, permit any Proposed Acquisition
Transaction to occur (whether by (A) redeeming rights under a shareholder rights plan, (B)
finding a tender offer to be a “permitted offer” under any such plan or otherwise causing
any such plan to be inapplicable or neutralized with respect to any Proposed Acquisition
Transaction, or (C) approving any Proposed Acquisition Transaction, whether for purposes of
Section 203 of the DGCL or any similar corporate statute, any “fair price” or other
provision of Post’ charter or bylaws or otherwise),

          (ii) merge or consolidate with any other Person or liquidate or partially liquidate,

          (iii) in a single transaction or series of transactions sell or transfer (other than
sales or transfers of inventory in the ordinary course of business) all or substantially all
of the assets that were transferred to Post pursuant to the Post Contribution or sell or
transfer 60% or more of the gross assets of the Active Trade or Business or 60% or more of
the consolidated gross assets of Post and its Affiliates (such percentages to be measured
based on fair market value as of the Distribution Date),

          (iv) redeem or otherwise repurchase (directly or through a Post Affiliate) any Post
stock, or rights to acquire stock, except to the extent such repurchases satisfy Section
4.05(1)(b) of Revenue Procedure 96-30 (as in effect prior to the amendment of such Revenue
Procedure by Revenue Procedure 2003-48),

14

 

          (v) amend its certificate of incorporation (or other organizational documents), or take
any other action, whether through a stockholder vote or otherwise, affecting the voting
rights of Post Capital Stock (including, without limitation, through the conversion of one
class of Post Capital Stock into another class of Post Capital Stock), or

          (vi) take any other action or actions (including any action or transaction that would
be reasonably likely to be inconsistent with any representation made in the Representation
Letters or the Tax Opinions/Rulings) which in the aggregate (and taking into account any
other transactions described in this subparagraph (d)) would be reasonably likely to have
the effect of causing or permitting one or more persons (whether or not acting in concert)
to acquire directly or indirectly stock representing a Fifty-Percent or Greater Interest in
Post or otherwise jeopardize the Tax-Free Status,

unless prior to taking any such action set forth in the foregoing clauses (i) through (vi), (A)
Post shall have requested that Ralcorp obtain a Ruling in accordance with Section 7.04(b) and (d)
of this Agreement to the effect that such transaction will not affect the Tax-Free Status and
Ralcorp shall have received such a Ruling in form and substance satisfactory to Ralcorp in its sole
and absolute discretion, which discretion shall be exercised in good faith solely to preserve the
Tax-Free Status (and in determining whether a Ruling is satisfactory, Ralcorp may consider, among
other factors, the appropriateness of any underlying assumptions and management’s representations
made in connection with such Ruling), or (B) Post shall provide Ralcorp with an Unqualified Tax
Opinion in form and substance satisfactory to Ralcorp in its sole and absolute discretion, which
discretion shall be exercised in good faith solely to preserve the Tax-Free Status (and in
determining whether an opinion is satisfactory, Ralcorp may consider, among other factors, the
appropriateness of any underlying assumptions and management’s representations if used as a basis
for the opinion and Ralcorp may determine that no opinion would be acceptable to Ralcorp) or (C)
Ralcorp shall have waived the requirement to obtain such Ruling or Unqualified Tax Opinion.

          (d) If Post proposes to enter into any Section 7.02(d) Acquisition Transaction or, to the
extent Post has the right to prohibit any Section 7.02(d) Acquisition Transaction, proposes to
permit any Section 7.02(d) Acquisition Transaction to occur, in each case, during the period from
the date hereof until the first day after the two-year anniversary of the Distribution Date, Post
shall provide Ralcorp, no later than ten (10) days following the signing of any written agreement
with respect to the Section 7.02(d) Acquisition Transaction, with a written description of such
transaction (including the type and amount of Post Capital Stock to be issued in such transaction)
and a certificate of the Board of Directors of Post to the effect that the Section 7.02(d)
Acquisition Transaction is not a Proposed Acquisition Transaction or any other transaction to which
the requirements of Section 7.02(c) apply (a “Board Certificate”).

          7.03 Restrictions on Ralcorp. Ralcorp agrees that it will not take or fail to take, or permit any member of the Ralcorp
Group to take or fail to take, any action where such action or failure to act would be inconsistent
with or cause to be untrue any material, information, covenant or representation in any
Representation Letters or Tax Opinions/Rulings. Ralcorp agrees that it will not take or fail to
take, or permit any member of the Ralcorp Group to take or fail to take, any action which prevents
or could reasonably be expected to prevent (a) the Tax-Free Status, or (b) any other transaction
contemplated by the Separation and Distribution Agreement which is intended by the parties to be
tax-free from so qualifying; provided, however, that this Section 7.03 shall not be construed as
obligating Ralcorp to consummate the Distribution without the satisfaction or waiver of all
conditions set forth in Section 8.01 of the Separation and Distribution Agreement nor shall it be
construed as preventing Ralcorp from terminating the Separation and Distribution Agreement pursuant
to Section 14.13 thereof.

          7.04 Procedures Regarding Opinions and Rulings.

               (a) If Post notifies Ralcorp that it desires to take one of the actions described in clauses
(i) through (vi) of Section 7.02(c) (a “Notified Action”), Ralcorp and Post shall
reasonably cooperate to attempt to obtain the Ruling or Unqualified Tax Opinion referred to in
Section 7.02(c), unless Ralcorp shall have waived the requirement to obtain such Ruling or
Unqualified Tax Opinion.

15

 

               (b) Ralcorp agrees that at the reasonable request of Post pursuant to Section 7.02(c), Ralcorp
shall cooperate with Post and use its commercially reasonable efforts to seek to obtain, as
expeditiously as possible, a Ruling from the IRS or an Unqualified Tax Opinion for the purpose of
permitting Post to take the Notified Action. Further, in no event shall Ralcorp be required to file
any Ruling Request under this Section 7.04(b) unless Post represents that (i) it has reviewed the
Ruling Request, and (ii) all information and representations, if any, relating to any member of the
Post Group, contained in the Ruling Request documents are (subject to any qualifications therein)
true, correct and complete. Post shall reimburse Ralcorp for all reasonable costs and expenses
incurred by the Ralcorp Group in obtaining a Ruling or Unqualified Tax Opinion requested by Post
within ten (10) Business Days after receiving an invoice from Ralcorp therefor.

               (c) Ralcorp shall have the right to obtain a Ruling or a Tax opinion with respect to the
Transactions (including an Unqualified Tax Opinion) at any time in its sole and absolute
discretion. If Ralcorp determines to obtain such a Ruling or an Unqualified Tax Opinion, Post shall
(and shall cause each Affiliate of Post to) cooperate with Ralcorp and take any and all actions
reasonably requested by Ralcorp in connection with obtaining the Ruling or Unqualified Tax Opinion
(including, without limitation, by making any representation or covenant or providing any materials
or information requested by the IRS or Tax Advisor; provided that Post shall not be required to
make (or cause any Affiliate of Post to make) any representation or covenant that is inconsistent
with historical facts or as to future matters or events over which it has no control). Ralcorp and
Post shall each bear its own costs and expenses in obtaining a Ruling or an Unqualified Tax Opinion
requested by Ralcorp.

               (d) Post hereby agrees that Ralcorp shall have sole and exclusive control over the process of
obtaining any Ruling, and that only Ralcorp shall apply for a Ruling. In connection with obtaining
a Ruling pursuant to Section 7.04(b), (i) Ralcorp shall keep Post informed in a timely manner of
all material actions taken or proposed to be taken by Ralcorp in connection therewith; (ii) Ralcorp
shall (A) reasonably in advance of the submission of any Ruling Request documents provide Post with
a draft copy thereof, (B) reasonably consider Post’ comments on such draft copy, and (C) provide
Post with a final copy; and (iii) Ralcorp shall provide Post with notice reasonably in advance of,
and Post shall have the right to attend, any formally scheduled meetings with the IRS (subject to
the approval of the IRS) that relate to such Ruling. Neither Post nor any Post Affiliate directly
or indirectly controlled by Post shall seek any guidance from the IRS or any other Tax Authority
(whether written, verbal or otherwise) at any time concerning the Transactions (including the
impact of any transaction on the Transactions).

          Section 8.
Assistance and Cooperation.

          8.01 Assistance and Cooperation.

               (a) The Companies shall cooperate (and cause their respective Affiliates to cooperate) with
each other and with each other’s agents, including accounting firms and legal counsel, in
connection with Tax matters covered by this Agreement relating to the Companies and their
Affiliates including (i) preparation and filing of Tax Returns, (ii) determining the liability for
and amount of any Taxes due (including estimated Taxes) or the right to and amount of any refund of
Taxes, (iii) examinations of Tax Returns, and (iv) any administrative or judicial proceeding in
respect of Taxes assessed or proposed to be assessed. Such cooperation shall include making all
information and documents in their possession relating to the other Companies and their Affiliates
available to such other Companies as provided in Section 9. The Companies shall also make
available to the other, as reasonably requested and available, personnel (including officers,
directors, employees and agents of the Companies or their respective Affiliates) responsible for
preparing, maintaining, and interpreting information and documents relevant to Taxes, and personnel
reasonably required as witnesses or for purposes of providing information or documents in
connection with any administrative or judicial proceedings relating to Taxes.

               (b) Any information or documents provided under this Section 8 shall be kept confidential by
the Company receiving the information or documents, except as may otherwise be necessary in
connection with the filing of Tax Returns or in connection with any administrative or judicial
proceedings relating to Taxes. Notwithstanding any other provision of this Agreement or any other
agreement, (i) neither Ralcorp nor any Ralcorp

16

 

Affiliate shall be required to provide Post or any Post Affiliate or any other Person access
to or copies of any information or procedures (including the proceedings of any Tax Contest) other
than information or procedures that relate solely to Post, the business or assets of Post or any
Post Affiliate or matters in which Post has an obligation to indemnify under this Agreement, and
(ii) in no event shall Ralcorp or any Ralcorp Affiliate be required to provide Post, any Post
Affiliate or any other Person access to or copies of any information if such action could
reasonably be expected to result in the waiver of any Privilege. In addition, in the event that
Ralcorp determines that the provision of any information to Post or any Post Affiliate could be
commercially detrimental, violate any law or agreement or waive any Privilege, the parties shall
use reasonable best efforts to permit compliance with its obligations under this Section 8 in a
manner that avoids any such harm or consequence.

               (c) Following the acquisition of assets or stock relating to Post Canada, Post shall, upon the
request of Ralcorp, cause the entity holding the assets or stock relating to Post Business in
Canada to join in making an election under section 167 of the Canada Revenue Agency Excise Tax Act
with respect to any Canadian federal goods and services tax imposed on such purchase.

          8.02 Income Tax Return Information.

               (a) Post and Ralcorp acknowledge that time is of the essence in relation to any request for
information, assistance or cooperation made by Ralcorp or Post pursuant to Section 8.01 or this
Section 8.02. Post and Ralcorp acknowledge that failure to conform to the deadlines set forth
herein or reasonable deadlines otherwise set by Ralcorp or Post could cause irreparable harm.

               (b) The Companies shall provide to the other Companies information and documents relating to
its Group, and in its possession, that are required by the other Companies to prepare Tax Returns.
Any information or documents the Responsible Company requires to prepare such Tax Returns shall be
provided in such form as the Responsible Company reasonably requests and in sufficient time for the
Responsible Company to file such Tax Returns on a timely basis.

          8.03 Reliance by Ralcorp. If any member of the Post Group supplies information to a member of the Ralcorp Group in
connection with a Tax liability and an officer of a member of the Ralcorp Group signs a statement
or other document under penalties of perjury in reliance upon the accuracy of such information,
then upon the written request of such member of the Ralcorp Group identifying the information being
so relied upon, the chief financial officer of Post (or any officer of Post as designated by the
chief financial officer of Post) shall certify in writing that to his or her knowledge (based upon
consultation with appropriate employees) the information so supplied is accurate and complete.
Post agrees to indemnify and hold harmless each member of the Ralcorp Group and its directors,
officers and employees from and against any fine, penalty, or other cost or expense of any kind
attributable to a member of the Post Group having supplied, pursuant to this Section 8, a member of
the Ralcorp Group with inaccurate or incomplete information in connection with a Tax liability.

          8.04 Reliance by Post. If any member of the Ralcorp Group supplies information to a member of the Post Group in
connection with a Tax liability and an officer of a member of the Post Group signs a statement or
other document under penalties of perjury in reliance upon the accuracy of such information, then
upon the written request of such member of the Post Group identifying the information being so
relied upon, the chief financial officer of Ralcorp (or any officer of Ralcorp as designated by the
chief financial officer of Ralcorp) shall certify in writing that to his or her knowledge (based
upon consultation with appropriate employees) the information so supplied is accurate and complete.
Ralcorp agrees to indemnify and hold harmless each member of the Post Group and its directors,
officers and employees from and against any fine, penalty, or other cost or expense of any kind
attributable to a member of the Ralcorp Group having supplied, pursuant to this Section 8, a member
of the Post Group with inaccurate or incomplete information in connection with a Tax liability.

          Section 9. Tax Records.

17

 

          9.01 Retention of Tax Records.The Companies shall preserve and keep all Tax Records in their possession and exclusively
relating to the assets and activities of their Group for Pre-Distribution Periods, and Ralcorp
shall preserve and keep all other Tax Records relating to Taxes of the Groups for
Pre-Distribution Tax Periods, for so long as the contents thereof may become material in the
administration of any matter under the Code or other applicable Tax Law, but in any event
until the later of (a) the expiration of any applicable statutes of limitations, or (b) seven
(7) years after the Distribution Date (such later date, the “Retention Date”). After
the Retention Date, a Company may dispose of such Tax Records upon ninety (90) days’ prior
written notice to the other Companies. If, prior to the Retention Date, a Company reasonably
determines that any Tax Records which it would otherwise be required to preserve and keep
under this Section 9 are no longer material in the administration of any matter under the Code
or other applicable Tax Law and the other Companies agree, then such first Company may dispose
of such Tax Records upon ninety (90) days’ prior notice to the other Companies. Any notice of
an intent to dispose given pursuant to this Section 9.01 shall include a list of the Tax
Records to be disposed of describing in reasonable detail each file, book, or other record
accumulation being disposed. The notified Company shall have the opportunity, at its cost and
expense, to copy or remove, within such 90-day period, all or any part of such Tax Records.
If, at any time prior to the Retention Date, Post determines to decommission or otherwise
discontinue any computer program or information technology system used to access or store any
Tax Records, then Post may decommission or discontinue such program or system upon ninety (90)
days’ prior notice to Ralcorp and Ralcorp shall have the opportunity, at its cost and expense,
to copy, within such 90-day period, all or any part of the underlying data relating to the Tax
Records accessed by or stored on such program or system.

          9.02 Access to Tax Records.The Companies and their respective Affiliates shall make available to each other for
inspection and copying during normal business hours upon reasonable notice all Tax Records
(and, for the avoidance of doubt, any pertinent underlying data accessed or stored on any
computer program or information technology system) in their possession and shall permit the
other Companies and their Affiliates, authorized agents and representatives and any
representative of a Taxing Authority or other Tax auditor direct access during normal business
hours upon reasonable notice to any computer program or information technology system used to
access or store any Tax Records, in each case to the extent reasonably required by the other
Companies in connection with the preparation of Tax Returns or financial accounting
statements, audits, litigation, or the resolution of items under this Agreement.

          Section 10. Tax Contests.

          10.01 Notice. A Company shall provide prompt notice to the other Companies of any written communication
from a Tax Authority regarding any pending or threatened Tax audit, assessment or proceeding
or other Tax Contest of which it becomes aware related to Taxes for Tax Periods for which it
is indemnified by another Company hereunder, provided, however, that the indemnifying Company
shall not be relieved of its obligations hereunder by reason of any failure by the indemnified
Company to so notify except to the extent such failure actually prejudices the indemnifying
Company. Such notice shall attach copies of the pertinent portion of any written communication
from a Tax Authority and contain factual information (to the extent known) describing any
asserted Tax liability in reasonable detail and shall be accompanied by copies of any notice
and other documents received from any Tax Authority in respect of any such matters.

          10.02 Control of Tax Contests.

               (a) Ralcorp. Ralcorp may elect to control, and have the sole discretion in handling,
settling or contesting, subject to Sections 10.02(d) and (e) below, any Tax Contest relating to (i)
all Tax Returns for which Ralcorp is responsible for preparing and filing under Section 4.02, (ii)
all Transfer Taxes, (iii) all Transaction Taxes assessed against Ralcorp or members of the Ralcorp
Group by the applicable Taxing Authority and (iv) the Tax treatment of the Transactions.

               (b) Post. Post may elect to control, and have the sole discretion in handling,
settling or contesting, subject to Sections 10.02(d) and (e) below, any Tax Contest relating to (i)
all Tax Returns for which Post

18

 

is responsible for preparing and filing under Section 4.03, (ii) all Transaction Taxes
assessed against Post by the applicable Taxing Authority, and (iii) all Recoverable Taxes.

               (c) Joint Returns and Certain Other Returns. In the case of any Tax Contest with
respect to any Joint Return or Ralcorp State Combined Income Tax Return, Ralcorp shall have
exclusive control over the Tax Contest, including exclusive authority with respect to any
settlement of such Tax liability, subject to Sections 10.02(d) and (e) below.

               (d) Settlement Rights. The Controlling Party shall have the sole right to contest,
litigate, compromise and settle any Tax Contest without obtaining the prior consent of the
Non-Controlling Party. Unless waived by the parties in writing, in connection with any potential
adjustment in a Tax Contest as a result of which adjustment the Non-Controlling Party may
reasonably be expected to become liable to make any indemnification payment (or any payment under
Section 6) to the Controlling Party under this Agreement: (i) the Controlling Party shall keep the
Non-Controlling Party informed in a timely manner of all actions taken or proposed to be taken by
the Controlling Party with respect to such potential adjustment in such Tax Contest; (ii) the
Controlling Party shall provide the Non-Controlling Party copies of any written materials relating
to such potential adjustment in such Tax Contest received from any Tax Authority; (iii) the
Controlling Party shall timely provide the Non-Controlling Party with copies of any correspondence
or filings submitted to any Tax Authority or judicial authority in connection with such potential
adjustment in such Tax Contest; and (iv) the Controlling Party shall consult with the
Non-Controlling Party and offer the Non-Controlling Party a reasonable opportunity to comment
before submitting any written materials prepared or furnished in connection with such potential
adjustment in such Tax Contest. The failure of the Controlling Party to take any action specified
in the preceding sentence with respect to the Non-Controlling Party shall not relieve the
Non-Controlling Party of any liability and/or obligation which it may have to the Controlling Party
under this Agreement except to the extent that the Non-Controlling Party was actually harmed by
such failure, and in no event shall such failure relieve the Non-Controlling Party from any other
liability or obligation which it may have to the Controlling Party. In the case of any Tax Contest
described in Section 10.02(a) or (b), “Controlling Party” means the Company entitled to
control the Tax Contest under such Section and “Non-Controlling Party” means the other
Company.

               (e) Tax Contest Participation. Unless waived by the parties in writing, the
Controlling Party shall provide the Non-Controlling Party with written notice reasonably in advance
of, and the Non-Controlling Party shall have the right to request to attend, any formally scheduled
meetings with Tax Authorities or hearings or proceedings before any judicial authorities in
connection with any potential adjustment in a Tax Contest pursuant to which the Non-Controlling
Party may reasonably be expected to become liable to make any indemnification payment (or any
payment under Section 6) to the Controlling Party under this Agreement. The failure of the
Controlling Party to provide any notice specified in this Section 10.02(e) to the Non-Controlling
Party shall not relieve the Non-Controlling Party of any liability and/or obligation which it may
have to the Controlling Party under this Agreement except to the extent that the Non-Controlling
Party was actually harmed by such failure, and in no event shall such failure relieve the
Non-Controlling Party from any other liability or obligation which it may have to the Controlling
Party.

               (f) Power of Attorney. Each member of the Post Group shall execute and deliver to
Ralcorp (or such member of the Ralcorp Group as Ralcorp shall designate) any power of attorney or
other similar document reasonably requested by Ralcorp (or such designee) in connection with any
Tax Contest (as to which Ralcorp is the Controlling Party) described in this Section 10.

          Section 11. Effective Date; Termination of Prior Intercompany Tax Allocation Agreements. This Agreement shall be effective as of the date hereof. As of the date hereof, (a) all prior
intercompany Tax allocation agreements or arrangements shall be terminated, and (b) amounts due
under or contemplated by such agreements or arrangements as of the date hereof shall be settled as
of the date hereof. Upon such termination and settlement, no further payments by or to Ralcorp or
by or to Post, with respect to such agreements or arrangements shall be made, and all other rights
and obligations resulting from such agreements or arrangements

19

 

between the Companies and their Affiliates shall cease at such time. Any payments pursuant to such
agreements or arrangements shall be disregarded for purposes of computing amounts due under this
Agreement.

          Section 12. Survival of Obligations. The representations, warranties, covenants and agreements set forth in this Agreement shall be
unconditional and absolute and shall remain in effect without limitation as to time.

          Section 13.
Treatment of Payments; Tax Gross Up.

          13.01 Treatment of Tax Indemnity and Tax Benefit Payments. In the absence of any change in Tax treatment under the Code or other applicable Tax Law any
Tax Indemnity and/or Tax Benefit payments made by a Company under this Agreement shall, to the
extent permitted by Tax Law, be reported for Tax purposes by the payor and the recipient as
distributions or capital contributions, as appropriate, occurring immediately before the
Distribution.

          13.02 Tax Gross Up. If notwithstanding the manner in which Tax indemnity payments and Tax Benefit payments were
reported, there is an adjustment to the Tax liability of a Company as a result of its receipt
of a payment pursuant to this Agreement, such payment shall be appropriately adjusted so that
the amount of such payment, reduced by the amount of all Income Taxes payable with respect to
the receipt thereof (but taking into account all correlative Tax Benefits resulting from the
payment of such Income Taxes), shall equal the amount of the payment which the Company
receiving such payment would otherwise be entitled to receive pursuant to this Agreement.

          13.03 Interest Under This Agreement. Anything herein to the contrary notwithstanding, to the extent one Company
(“Indemnitor”) makes a payment of interest to another Company (“Indemnitee”) under
Section 15 of this Agreement, the interest payment shall be treated as interest expense to the
Indemnitor (deductible to the extent provided by law) and as interest income by the Indemnitee
(includible in income to the extent provided by law). The amount of the payment shall not be
adjusted under Section 2.02 to take into account any associated Tax Benefit to the Indemnitor or
increase in Tax to the Indemnitee.

          Section 14. Disagreements. Post and Ralcorp mutually desire that friendly collaboration will continue between them.
Accordingly, they will try, and they will cause their respective Group members to try, to resolve
in an amicable manner all disagreements and misunderstandings connected with their respective
rights and obligations under this Agreement, including any amendments hereto. In furtherance
thereof, in the event of any dispute or disagreement (a “Tax Dispute”) between any member
of the Ralcorp Group and any member of the Post Group as to the interpretation of any provision of
this Agreement or the performance of obligations hereunder, the Tax departments of the Companies
shall negotiate in good faith to resolve the Tax Dispute. If such good faith negotiations do not
resolve the Tax Dispute, then the matter shall be resolved pursuant to the procedures set forth in
Article XII of the Separation and Distribution Agreement, provided, however, that upon the request
of either Company, the arbitrator selected by each of the parties pursuant to Section 12.04 of the
Separation and Distribution Agreement shall be a recognized tax professional, such as a United
States tax counsel or accountant of recognized national standing. Nothing in this Section 14 will
prevent either Company from seeking injunctive relief if any delay resulting from the efforts to
resolve the Tax Dispute through the procedures set forth in Article XII of the Separation and
Distribution Agreement could result in serious and irreparable injury to either Company.
Notwithstanding anything to the contrary in this Agreement, the Separation and Distribution
Agreement or any Transaction Agreements, Ralcorp and Post are the only members of their respective
Group entitled to commence a dispute resolution procedure under this Agreement, and each of Ralcorp
and Post will cause its respective Group members not to commence any dispute resolution procedure
other than through such party as provided in this Section 14.

          Section 15. Late Payments. Any amount owed by one party to another party under this Agreement which is not paid when
due shall bear interest at the Prime Rate plus two percent, compounded semiannually, from the due
date of the payment to the date paid. To the extent interest required to be paid under this Section
15 duplicates interest required to be paid under any other provision of this Agreement, interest
shall be computed at

20

 

the higher of the interest rate provided under this Section 15 or the interest rate provided
under such other provision.

          Section 16. Expenses. Except as otherwise provided in this Agreement or the Transition Services Agreement, each
party and its Affiliates shall bear their own expenses incurred in connection with preparation of
Tax Returns, Tax Contests, and other matters related to Taxes under the provisions of this
Agreement.

          Section 17. General Provisions.

          17.01 No Double Recovery. No provision of this Agreement shall be construed to provide an indemnity or other recovery
for any costs, damages, or other amounts for which the damaged party has been fully compensated
under any other provision of this Agreement or under any other agreement or action at law or
equity. Unless expressly required in this Agreement, a party shall not be required to exhaust all
remedies available under other agreements or at law or equity before recovering under the remedies
provided in this Agreement.

          17.02 Entire Agreement. This Agreement and the Transaction Agreements, including the Schedules and Exhibits
referred to herein and therein and the documents delivered pursuant hereto and thereto, constitute
the entire agreement between any of the parties hereto with respect to the subject matter contained
herein or therein, and supersede all prior agreements, negotiations, discussions, understandings
and commitments, written or oral, between any of the parties hereto with respect to such subject
matter.

          17.03 Choice of Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE
SUBSTANTIVE LAWS OF THE STATE OF MISSOURI, WITHOUT REGARD TO ANY CONFLICTS OF LAW PROVISION OR RULE
THEREOF THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION.

          17.04 Amendment. This Agreement shall not be amended, modified or supplemented except by a written
instrument signed by an authorized representative of Ralcorp and Post.

          17.05 Waiver. Any term or provision of this Agreement may be waived, or the time for its performance may
be extended, by the Company or Companies entitled to the benefit thereof. Any such waiver shall be
validly and sufficiently given for the purposes of this Agreement if, as to any Company, it is in
writing signed by an authorized representative of such Company. The failure of any Company to
enforce at any time any provision of this Agreement shall not be construed to be a waiver of such
provision, or in any way to affect the validity of this Agreement or any part hereof or the right
of any Company thereafter to enforce each and every such provision. No waiver of any breach of
this Agreement shall be held to constitute a waiver of any other or subsequent breach.

          17.06 Partial Invalidity. Wherever possible, each provision hereof shall be interpreted in such a manner as to be
effective and valid under applicable law, but in case any one or more of the provisions contained
herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such
provision or provisions shall be ineffective to the extent, but only to the extent, of such
invalidity, illegality or unenforceability without invalidating the remainder of such provision or
provisions or any other provisions hereof, unless such a construction would be unreasonable.

          17.07 Execution in Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed
an original instrument, but all of which shall be considered one and the same agreement, and shall
become binding when one or more counterparts have been signed by and delivered to each of the
parties hereto.

          17.08 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their successors and permitted assigns; provided, however, that the rights and obligations of any
Company under this Agreement shall not be assignable by such Company (whether by a sale of assets, merger, operation of law or otherwise) without the prior written
consent of the other parties hereto. The successors and permitted assigns hereunder shall include
any permitted assignee as

21

 

well as the successors in interest to such permitted assignee (whether by merger, liquidation
(including successive mergers or liquidations) or otherwise).

          17.09 Notices. All notices, requests, claims, demands and other communications required or permitted
hereunder shall be in writing and shall be deemed duly given or delivered (a) when delivered
personally, (b) if transmitted by facsimile when confirmation of transmission is received or by
email when receipt of such email is acknowledged by return email, (c) if sent by registered or
certified mail, postage prepaid, return receipt requested, on the third business day after mailing
or (d) if sent by private courier when received; and shall be addressed as follows:

If to Ralcorp, to:

Ralcorp Holdings, Inc.

800 Market Street

St. Louis, Missouri 63101

Attention: Gregory A. Billhartz

Facsimile: (314) 877-

If to Post, to:

Post Holdings, Inc.

[Address]

Attention:

Facsimile:

or to such other address as such Company may indicate by a notice delivered to the other Companies.

          17.10 No Reliance on Other Company. The parties hereto represent to each other that this Agreement is entered into with full
consideration of any and all rights which the parties hereto may have. The parties hereto have
relied upon their own knowledge and judgment and have conducted such investigations they and their
in-house counsel have deemed appropriate regarding this Agreement and the Transaction Agreements
and their rights in connection with this Agreement and the Transaction Agreements. The parties
hereto are not relying upon any representations or statements made by any other Company, or any
such other Company’s employees, agents, representatives or attorneys, regarding this Agreement,
except to the extent such representations are expressly set forth or incorporated in this
Agreement. The parties hereto are not relying upon a legal duty, if one exists, on the part of any
other Company (or any such other Company’s employees, agents, representatives or attorneys) to
disclose any information in connection with the execution of this Agreement or its preparation, it
being expressly understood that no Company hereto shall ever assert any failure to disclose
information on the part of any other Company as a ground for challenging this Agreement or any
provision hereof.

          17.11 Performance. Each Company shall cause to be performed, and hereby guarantees the performance of, all
actions, agreements and obligations set forth herein.

Remainder of page intentionally left blank.

22

 

     IN WITNESS WHEREOF, each party has caused this Agreement to be executed on its behalf by a
duly authorized officer on the date first set forth above.

	 	 	 	 	 	 	 	 	 	 	 

	“Ralcorp”	 	 	 	“Post”	 	 
	Ralcorp Holdings, Inc.,	 	 	 	Post Holdings, Inc.,	 	 
	a Missouri corporation	 	 	 	a Missouri corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	Name:

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	Title:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 

23

 

ANNEX I

Transaction Steps

	 	 	 

	Step One.

	 	Ralcorp forms a new wholly-owned subsidiary, Post, which will be Missouri corporation.
	 
	 	 
	Step Two.

	 	Post borrows funds from one or more
unrelated third parties (the “Post Credit Facility”). Ralcorp contributes all
of the equity interest in Post US to Post (“Post
Contribution”) in exchange for additional shares of Post, a
portion of the borrowing proceeds and newly issued securities of Post
(“Post Debt Securities”). The borrowing
proceeds retained by Post will be used to pay the purchase price for the Canada Sale (defined below) and for
working capital.
	 
	 	 
	Step Three.

	 	Post will use a portion of the borrowing proceeds to acquire the portion of the Post Business located in Canada
from Post Foods Canada Corporation (or its successor or affiliate) through either a direct or indirect stock or
asset purchase (the “Canada Sale”), to be held in a
newly formed Canadian entity (“New Post Canada”).
	 
	 	 
	Step Four.

	 	Ralcorp will distribute at least
80% of the stock of Post pro rata to its shareholders (the
“Distribution”) and
will retain no more than 20% of the stock of Post (the
“Retained Shares;” the retention of the Retained Shares by
Ralcorp is referred to herein as the “Share Retention”).
	 
	 	 
	Step Five.

	 	Before or after Steps One, Two, Three and Four, Ralcorp will borrow cash from one or more financial institutions
(the “Ralcorp Debt”). At a time when the financial institution(s) have held the Ralcorp Debt for no less than 5
days, Ralcorp and the financial institution(s) may enter into
(i) an exchange agreement (the “Debt for Debt
Exchange Agreement”) pursuant to which the parties agree to exchange an amount of Ralcorp Debt to be determined by
the parties bargaining at arm’s length for Post Debt Securities,
and (ii) an exchange agreement (the “Equity for
Debt Exchange Agreement”) pursuant to which the parties agree to exchange an amount of Ralcorp Debt to be
determined by the parties bargaining at arm’s length for Retained Shares.
	 
	 	 
	Step Six.

	 	At a time when the financial institution(s) have held the Ralcorp Debt as principals for at least 14 days, Ralcorp
will transfer (i) the Post Debt Securities to the financial institution(s) in repayment of all or a portion of the
Ralcorp Debt (the “Debt for Debt Exchange”), and (ii) the Retained Shares to the financial institution(s) in
repayment of all or a portion of the Ralcorp Debt (the
“Equity for Debt Exchange”).
	 
	 	 
	Step Seven.

	 	If market conditions are conducive, Ralcorp, pursuant to the plan that includes the Distribution, intends to
transfer any remaining Retained Shares to its shareholders in exchange for shares of Ralcorp Common Stock (the
“Share Repurchase”). Any Share Repurchase will in no event be completed later than 24 months following the
Distribution. Any of the Retained Shares not disposed of in the Share Repurchase will be disposed of as soon as is
warranted consistent with the business purpose for the Share Retention, but in any event not later than 5 years
after the Distribution.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}]]